Document:

EMPLOYEE EMPLOYMENT AGREEMENT

 

THIS EMPLOYEE EMPLOYMENT AGREEMENT (the “Agreement”) is made, entered into, and effective as of November 1, 2010 (“Effective Date”) by and between OncoVista Innovative Therapies, Inc., a Delaware corporation (the “Company”), and Tamas Bakos, an individual (the “Employee”).

 

RECITALS

 

WHEREAS, the Company is currently engaged in the development of new pharmaceutical compounds and repositioning existing compounds to develop safer, more effective and less toxic cancer treatments;

 

WHEREAS, the Company desires and intends to employ the Employee as Chief Operating Officer pursuant to the terms and conditions set forth in this Agreement;

 

WHEREAS, both the Company and the Employee have read and understood the terms and provisions set forth in this Agreement, and have been afforded a reasonable opportunity to review this Agreement with their respective legal counsel; and

 

WHEREAS, the Board of Directors of the Company has determined that it is in the best interests of its shareholders to enter into this Agreement in order to provide sufficient incentive for the Employee.

 

NOW, THEREFORE, in consideration of the foregoing, of the mutual promises contained herein, and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Employee agree as follows:

AGREEMENT

1.           Term.  The term of this Agreement shall commence on the Effective Date and shall end on the date which is the second anniversary of the Effective Date (the “Initial Term”).  This Agreement is subject to automatic renewal for successive one year terms, upon the same terms and conditions as set forth herein, unless either this Agreement is terminated pursuant to Section 5 hereof or a party gives written notice to the other party of its intent to terminate, at least six months prior to expiration of the then-current term.  The term of this Agreement, whether during the Initial Term or any renewal term, shall be referred to as the “Term.”

2.           Position and Responsibilities.

2.1           Position.  Employee will be employed by the Company to render services to the Company in the position of Director, Research & Development.  In that capacity, Employee shall perform such duties and responsibilities as are normally related to such position in accordance with the standards of the industry and any additional duties now or hereafter assigned to Employee by the Company, including, but not limited to, developing the Company’s intellectual property into commercially marketable products.  Employee shall report directly to, and be subject to the general direction and control of, the Company’s Chief Executive Officer.  The Employee shall have the powers, authority, functions, and responsibilities consistent with being Chief Operating Officer of the Company.  Employee shall abide by all Company rules, policies, and practices as adopted or modified, from time to time, in the Company’s sole discretion; and Employee shall use commercially reasonable efforts to promote the interests of the Company.

 

  

1

  

2.2           Principal Place of Performance.  Employee shall be based at the offices of the Company in San Antonio, Texas, where the Company anticipates it will continue to maintain a principal place of business. Notwithstanding this principal place of employment, Employee shall engage in such travel as is necessary or beneficial to the promotion, development, financing, or operation of the business of the Company.

2.3           Other Activities.  While employed by the Company, Employee shall devote the majority of his business time, attention, and skill to perform assigned duties, services, and responsibilities in a diligent, loyal, and conscientious manner, and shall act at all times in the furtherance of the Company’s business and interests.  Employee shall not, during the term of this Agreement:  (a) accept any other employment, or (b) engage, directly or indirectly, in any other business activity, except those activities already disclosed during the initial interview process,   (whether or not pursued for pecuniary advantage) which might interfere with Employee’s duties and responsibilities hereunder or create a conflict of interest with the Company.  The foregoing limitations shall not be construed to prohibit Employee from making personal investments in such form or manner as will neither require Employee’s services in the operation or affairs of the companies or enterprises in which such investments are made nor violate the terms of Section 4 hereof.

2.4           No Conflict.  Employee represents and warrants that Employee’s execution of this Agreement, Employee’s employment with the Company, and the performance of Employee’s proposed duties under this Agreement shall not violate any obligations Employee may have to any other employer, person, or entity, including but not limited to any obligations with respect to proprietary or confidential information of any other person or entity.  Further, Employee shall fully indemnify the Company, including but not limited to reasonable attorneys’ fees, costs, and expenses of investigation, for any claim by any third party that such third party may now have or may hereafter come to have against the Company, based upon or arising out of any non-competition agreement, confidentiality agreement, or invention or secrecy agreement between Employee and such third party which was in existence as of the date of this Agreement.

2.5           No Modification.  Employee understands and agrees that neither his job performance nor promotions, commendations, bonuses or the like from the Company give rise to or in any way serve as the basis for modification, amendment, or extension, by implication or otherwise, of his employment with the Company.

  

2

  

 

3.           Compensation and Benefits.

3.1         Base Salary.  In consideration of the services to be rendered under this Agreement, the Company shall pay Employee an initial salary equal to $120,000 per year (“Base Salary”) in equal installments in accordance with the Company’s standard payroll practices (but not less than monthly).  Such Base Salary shall be subject to such withholding or deductions as may be mutually agreed between the Company and Employee or as otherwise required by law.  Employee’s Base Salary will be reviewed, from time to time, in accordance with the established procedures of the Company for adjusting salaries for similarly situated employees and may be increased in the sole discretion of the Board of Directors of the Company.

 

3.2         Stock Options. The Company shall adopt a stock option plan, subject to the approval of the Board of Directors of the Company (the “Plan”). Following the approval of the Plan, Employee shall be eligible to receive options to purchase shares of the Company’s common stock under the Plan. Such options shall be subject to the terms of the Plan under which the options are granted and the terms of the award agreement issued thereafter. The overall stock option grant to the Employee shall consist of 99,000 options (the “Options”), which shall vest monthly, on a pro rata basis, over a vesting period of three years and at an exercise price equal to the closing price of the Company’s common stock on the date of the grant.

3.3         Change of Control.  In the event of a Change of Control (as defined below), all unvested Options shall vest and become exercisable immediately and, unless all such options are cashed-out in the Change of Control transaction, shall remain exercisable for a period of not less than 360 days, regardless of whether Employee’s employment is terminated.

	
  

	
(i)

	
For purposes of this Agreement, a “Change of Control” shall mean (A) the acquisition, directly or indirectly, following the date hereof by any person (as such term is defined in Section 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended), in one transaction or a series of related transactions, of securities of the Company representing 50% or more of the combined voting power of the Company’s then outstanding securities if such person or his or its affiliate(s) does not own in excess of 50% of such voting power on the date of this Agreement, or (B) the disposition by the Company (whether direct or indirect, by sale of assets or stock, merger, consolidation or otherwise) of all or substantially all of its business and/or assets in one transaction or series of related transactions (other than a merger effected exclusively for the purpose of changing the domicile of the Company).

	 	
(ii)

	
Notwithstanding Section 3.3(i) above, no transaction shall be considered a Change of Control under this Agreement, and no Options shall vest, pursuant to this Section 3.3 if (A) the Company’s stockholders existing prior to such transaction(s) hold in the aggregate more than 50% of the securities or assets of the surviving or resulting company; or (B) if made in connection with a private placement of securities of the Company in connection with a financing of the Company’s on-going operations; or (C) for any transaction ascribing a valuation to the Company of less than $1,000,000; provided, however, that such a transaction may be considered as part of a series of transactions that gives rise to a Change of Control pursuant to Section 3.3.

3.4         Fringe Benefits.  Employee shall be entitled to participate in the benefit plans that the Company generally makes available to its employees or other Employees.  The Company reserves the right to terminate any benefit plan for any reason or no reason whatsoever. Employee shall be entitled to four weeks paid vacation each year.

 

  

3

  

3.5           Business Expenses.  Throughout the Term of Employee’s employment hereunder, the Company shall reimburse Employee for all reasonable and necessary travel, entertainment, promotional, and other business expenses that may be incurred by Employee in the course of performing Employee’s duties.  Authorized expenses shall be reimbursed by the Company in accordance with policies and practices adopted, from time to time, by the Company concerning expense reimbursement for employees and shall be reimbursed upon timely presentation to the Company of an itemized expense statement with respect thereto, including substantiation of expenses incurred and such other documentation as may be required by the Company’s reimbursement policies from time to time and in accordance with Internal Revenue Service guidelines.

3.6           No Other Compensation or Benefits; Payment.  The compensation and benefits specified in this Section 3 shall be in lieu of any and all other compensation and benefits. Payment of all compensation and benefits to Employee hereunder shall be made in accordance with the relevant Company policies in effect from time to time to the extent the same are consistently applied, including normal payroll practices, and shall be subject to all applicable employment and withholding taxes and other withholdings.

4.           Inventions and Proprietary Information; Prohibition on Third Party Information.

4.1           Employee Confidential Information Agreement.  Employee shall sign and be bound by the terms of the Confidential Information Agreement, annexed hereto as Exhibit 4.1, the execution of which is a condition precedent to Employee’s employment with the Company.

4.2           Non-Disclosure of Third Party Information.  Employee represents and warrants and covenants that Employee shall not, at any time, disclose to the Company, or use, or induce the Company to use, any proprietary or confidential information or trade secrets of others, including, but not limited to, any proprietary information or trade secrets, if any, of any former employer if such disclosure or use would violate an obligation of Employee or applicable law.  Any violation of this provision shall be grounds for Employee’s immediate termination for Cause (as defined below). Employee further specifically and expressly acknowledges that no officer or other employee or representative of the Company has requested or instructed Employee to disclose or use any such third party proprietary or confidential information or trade secrets.

4.3           Inventions and Patents.  All processes, inventions, patents, computer software, copyrights, trademarks and other intangible rights or intellectual property that may be conceived or developed by Employee during the Term, either alone or with others, made or conceived by him shall remain the sole property of Company.

 

  

4

  

5.           Termination; Rights and Obligations on Termination.

5.1          Reasons for Termination of Agreement.  This Agreement and Employee’s employment may be terminated in any one of the followings ways:

5.1.1      Death.  The death of Employee shall immediately and automatically terminate this Agreement.  The Company shall pay to the Employee’s estate any accrued, but unpaid, Base Salary through the date of termination.  Other than the benefits described above, no further compensation or benefits shall be due or owing upon the Employee’s death.

5.1.2      Disability.  If, as a result of incapacity due to physical or mental illness or injury, Employee shall have been unable, after reasonable accommodation by the Company (as such term is defined in the Americans With Disabilities Act of 1990), to perform Employee’s duties hereunder for three consecutive months, then the Company may terminate Employee’s employment hereunder immediately upon written notice at the end of the three month period.  Upon termination as a result of disability, the Company shall, for the three month period immediately following the Employee’s termination, continue to pay the Employee’s Base Salary and shall provide (at Company’s expense) health insurance coverage to Employee and his spouse and dependent children.  Other than the benefits described above, no further compensation or benefits shall be due or owing upon the Employee’s termination.

5.1.3      Cause.  The Company may terminate this Agreement immediately upon written notice to Employee for “Cause,” which shall include, but not be limited to, in the Company’s reasonable but sole discretion, the following:  (i) Employee’s willful, material, and irreparable breach of this Agreement; (ii) Employee’s gross negligence in the performance of any of Employee’s material duties and responsibilities hereunder;  (iii) Employee’s intentional non-performance (other than by reason of disability or death) of any of Employee’s material duties and responsibilities hereunder or of any reasonable, lawful instructions from the Chief Employee Officer or Board of Directors of the Company continuing for ten days after receipt by Employee of written notice of the need to cure; (iv) Employee’s dishonesty, disloyalty, fraud, disappearance, neglect of duties, unprofessional conduct, acts of moral turpitude, or intentional or felonious misconduct with respect to the business or affairs of the Company which the Board of Directors of the Company determines in good faith has been or is likely to be injurious to the interest, property, operations, business, or reputation of the Company; (v) Employee’s conviction of a felony; or (vi) Employee’s violation of any provision of this Agreement.  In the event of a termination for Cause, as enumerated above, Employee shall receive no severance compensation.

5.1.4      Without Cause.  At any time after Employee’s commencement of employment, the Company may, without Cause, terminate this Agreement and Employee’s employment, effective 30 days after written notice is provided to Employee.  In the event Employee is terminated by the Company without Cause, the Company shall continue to pay the Employee the Base Salary (assuming that Employee would receive no further increases in his Base Salary after his termination of employment) for a period of three months from the date of termination.  Additionally, the Company shall provide Employee with continued life insurance and health care coverage (at the Company’s expense) that is substantially equivalent to the coverage that was provided to the Employee prior to the Employee’s termination for the one-year period following the date of the Employee’s termination without cause.

 

  

5

  

5.1.5      Change of Control Termination.  As soon as reasonable prior to any event constituting a Change of Control, but no later than 31 days prior thereto, the Company shall advise Employee of this pending occurrence (the “Change of Control Notice”).  Employee shall then have 31 days from the date of the Change of Control Notice to discuss, negotiate and confer with any successor entity regarding the terms and conditions of Employee’s continued employment with the successor Company following a Change of Control.  If Employee, acting reasonably, is unable to reach an agreement through good faith negotiations with any successor to the Company during such 31 day period, then Employee may elect (the “Change of Control Termination Option”) to terminate his employment with the Company and receive the payments outlined in Section 5.1.4 hereof.

5.1.6      Release.  Except for any accrued obligations, the severance payments described in Section 5 will be provided to Employee only if the following conditions are satisfied:  (i) Employee agrees to continue to be bound by and complies with all surviving provisions of the confidentiality and/or non-compete provisions of this Agreement; and (ii) Employee executes and delivers to the Company, and does not reasonably revoke, a full general release, in a form acceptable to the Company, releasing all claims, known or unknown, that Employee may have against the Company, and any subsidiary or related entity, their officers, directors, employees and agents, arising out of or any way related to Employee’s employment or termination of employment with the Company.

5.1.7      Resignation or Retirement by Employee.  If Employee resigns, retires, or otherwise terminates employment voluntarily, Employee shall receive no severance compensation.

5.1.8      Superseding Agreement.  This Agreement shall be terminated immediately and automatically if the parties enter into another employment agreement which supersedes this Agreement.  In the event the parties enter into a superseding agreement, no severance pay or other compensation shall be due to Employee with respect to the termination of this Agreement.

5.2          Survival and Continuing Obligations.  Upon termination of this Agreement, Employee shall be entitled to receive all compensation earned and all reimbursements due through the effective date of termination.  Additional compensation subsequent to termination, if any, will be due and payable to Employee only to the extent and in the manner expressly provided in this Section 5.  Employee shall cooperate with the Company in the winding-up of pending work on behalf of the Company and the orderly transfer of work to other employees.  Employee shall also cooperate with the Company in the defense of any action brought by any third party against the Company that relates to Employee’s employment by the Company.  All other rights and obligations of the Company and Employee under this Agreement shall cease as of the effective date of termination; except that the Company’s obligations under Section 5 herein and Employee’s obligation and other matters under Sections 4, 6, 7, and 8 herein shall survive such termination in accordance with their terms.

 

  

6

  

6.           Use and Return of Company Property.  Employee acknowledges the Company’s proprietary rights and interests in its tangible and intangible property.  Accordingly, Employee agrees that upon termination of Employee’s employment with the Company, for any reason, and at any time, Employee shall deliver to the Company all Company property, including: (a) all documents, contracts, writings, disks, diskettes, computer files or programs, computer-generated materials, information, documentation, or data stored in any medium, recordings and drawings pertaining to trade secrets, proprietary or confidential information, or other inventions and works of the Company; (b) all records, designs, plans, sketches, specifications, patents, business plans, financial statements, accountings, flow charts, manuals, notebooks, memoranda, lists, and other property delivered to or compiled by Employee, by or on behalf of the Company or any of its representatives, vendors, or customers which pertain to the business of the Company, all of which shall be and remain the property of the Company, and shall be subject, at all times, to its discretion and control; (c) all equipment, devices, products, and tangible personal property entrusted to Employee by the Company; and (d) all correspondence, reports, records, notes, charts, advertisement materials, and other similar data pertaining to the business, activities, or future plans of the Company, in the possession, custody, or control of Employee, in whichever form held (including all copies or embodiments thereof), shall be delivered promptly to the Company without request by it.  Employee shall certify to the Company, in writing, within five business days of any written request by the Company, that all such materials have been returned to the Company.

7.           Disclosure of Relationships or Agreements.  After termination, Employee shall not disclose the specific terms of the Company’s relationships or agreements with its respective vendors, financiers, or customers that are not publicly known, whether in existence or proposed, to any person, firm, partnership, corporation, or business for any reason or purpose whatsoever.

8.           Non-Competition and Non-Solicitation.

8.1           Covenant Not To Compete.   Employee hereby acknowledges and agrees that, during the term of Employee’s employment with the Company:  (i) the Company has expended and will continue to expend considerable time, expense, and organizational resources to develop and maintain its reputation and good-will in the industry and among its customers and clients and prospective customers and clients; (ii) the Company will rely upon the reputation and good-will it has established to successfully continue its business; (iii) the Company will entrust such reputation and good-will to Employee during the term of Employee’s employment and will provide Employee with opportunities to become acquainted with the Company’s customers, clients, suppliers, licensees, business partners, employees, contractors, and agents, to establish business relationships with them, and to have access to records detailing their business activities with the Company; (iv) Employee has become, and will continue to become, familiar with the Company’s trade secrets and with other Confidential Information, as defined in Exhibit 4.1; (v) Employee’s services to the Company have been and will continue to be unique in nature and of extraordinary value to the Company; and (vi) the Company would be irreparably damaged if Employee were to provide similar services, or reveal trade secrets or Confidential information, to any person or entity competing with the Company or engaged in a similar business.  Accordingly, Employee agrees as follows:

 

  

7

  

8.1.1      For a period of one year immediately following the termination of Employee’s employment, regardless of whether Employee’s termination is voluntary or involuntary, with or without cause, Employee shall not engage as an officer, director, partner, consultant, managerial employee, agent, principal, individual owner or proprietor, or otherwise, either for himself or on behalf of any other person, firm, partnership, corporation, association, or other entity, in any development, planning, marketing, sales, management, research or operational activities in any business engaged in the development of compound classes or technology platforms that the Company was actively involved with during the period of the Employee’s employment.

8.2          Non-Solicitation.  Employee acknowledges and agrees that the Company would be irreparably damaged if Employee were to disrupt the Company’s relationships with its employees, contractors, consultants, agents, or customers for purposes of engaging in unfair competition with the Company.  Accordingly, Employee agrees as follows:

8.2.1      During Employee’s employment and for a period of one year immediately following the termination of Employee’s employment, regardless of whether Employee’s termination is voluntary or involuntary, with or without cause, Employee shall not, either for himself or on behalf of or in conjunction with any other person, partnership, corporation, organization, or other entity, either solicit, divert, induce, or attempt to solicit, divert, or induce, any employee, contractor, consultant, or agent of the Company to sever or alter his, her, or its relationship with the Company, its divisions, subsidiaries, or affiliates, or otherwise interfere with or disrupt the Company’s relationship with any of its employees, contractors, consultants, or agents.

8.2.2      During Employee’s employment and for a period of one year immediately following the termination of Employee’s employment, regardless of whether Employee’s termination is voluntary or involuntary, with or without cause, Employee shall not solicit, contact, divert, induce, or attempt to solicit, contact, divert, or induce, any actual or prospective customer or client of the Company with whom Employee has had material contact (as defined below) during the 12 month period immediately preceding the termination of Employee’s employment to sever or alter his, her, or its relationship with the Company or its subsidiaries, divisions, or affiliates (including, without limitation, making any negative statements or communications concerning the Company).  For purposes of this section, “material contact” exists between Employee and an actual or prospective customer or client of the Company if Employee:  (i) personally dealt with such customer or client; (ii) coordinated or supervised dealings with such customer or client; or (iii) obtained Confidential Information about such customer or client in the ordinary course of business through  Employee’s association with the Company; provided that “material contact” shall not exist if Employee had a relationship with such customer or client that predates Employee’s employment with the Company and such customer or client became a customer or client of the Company without Employee using the resources or goodwill of the Company.  The restriction contained in this section shall not prevent Employee from accepting business from customers or clients or prospective customers or clients of the Company who transfer their business in the absence of any conduct on the part of Employee that violates this covenant not to solicit.

 

  

8

  

8.3           Reasonable Restrictions.  Employee hereby acknowledges and agrees that the limits on his ability to engage in activities that are competitive with the Company, as defined above, are warranted in order to protect the Company’s trade secrets and Confidential Information, and further, are warranted to protect the Company in developing and maintaining its reputation, goodwill, and status in the marketplace.  Employee specifically agrees that the time period and nature of the restrictions set forth in Sections 8.1 and 8.2 are reasonable and necessary to protect the Company’s legitimate business interests and do not impose any limitations greater than those necessary to protect those interests.

8.4           Remedies.   Employee hereby acknowledges and agrees that the services Employee has rendered and will continue to render to the Company are of a special and unique character, which gives this Agreement a peculiar value to the Company, and further acknowledges and agrees that the loss of those services to a direct competitor or the direct competition by Employee against the Company cannot be reasonably or adequately compensated for by damages in an action at law.  Employee further acknowledges and agrees that any breach or threatened breach by Employee of any provision of Sections 4,6,7, or 8 of this Agreement shall cause irreparable harm to the Company, which harm cannot be reasonably or adequately compensated for by damages in an action at law.  Accordingly, without prejudice to the rights and remedies otherwise available to the Company, Employee agrees that, in addition to any other right or remedy the Company may have, the Company shall be entitled to a temporary restraining order and to a preliminary and permanent injunction enjoining or restraining the breach or threatened breach of this Agreement by Employee, without the necessity of proving the inadequacy of monetary damages or the posting of any bond or security.  Employee acknowledges and agrees that the preceding remedies shall be in addition to any and all other rights available to the Company at law or in equity.  The failure of the Company to promptly institute legal action upon any breach of this Agreement shall not constitute a waiver of that or any other breach hereof.  Employee agrees to pay any and all court costs, attorneys’ fees, and related expenses incurred by the Company in successfully enforcing any provision of this Agreement, including without limitation, obtaining the injunctive relief provided by this provision.

9.           Indemnification; Insurance.

9.1           Indemnification of Employee.   Except as otherwise provided in this Agreement or by applicable law, in the event Employee is made a party to any threatened, pending, or contemplated action, suit, or proceeding, whether civil, criminal, administrative, or investigative (other than an action by the Company against Employee), by reason of the fact that Employee is or was performing services under this Agreement, then the Company shall indemnify Employee against all expenses (including attorneys’ fees), judgments, fines, and amounts paid in settlement, as actually and reasonably incurred by Employee in connection therewith, except that nothing in this Section shall in any way relieve Employee of his obligation to the Company contained in Section 2.4 hereof.  In the event that both Employee and the Company are made a party to the same third party action, complaint, suit, or proceeding, the Company will engage competent legal representation, and Employee will use the same representation, provided that if counsel selected by the Company shall have a conflict of interest that prevents such counsel from representing Employee, then the Company may engage separate counsel on Employee’s behalf, and subject to the provisions of this Section 9, the Company will pay all attorneys’ fees of such separate counsel.  Further, while Employee is expected at all times to use commercially reasonable efforts to discharge Employee’s duties under this Agreement, Employee cannot be held liable to the Company for errors or omissions made in good faith and in a manner Employee reasonably believed to be in, or not opposed to, the best interests of the Company, except where Employee has exhibited gross, willful, or wanton negligence or misconduct, or has performed criminal or fraudulent acts that he had no reasonable cause to believe were unlawful and that materially damage the Company.

 

  

9

  

9.2           Indemnification of Company.   Employee covenants and agrees to defend, indemnify and hold Company harmless, from and against any damages, including, without limitations, penalties, settlements, claims, liabilities, attorneys’ fees and court costs, arising out of or resulting from:  (i) any inaccuracy in or breach of any representation, warranty, covenant or agreement made by Employee in this Agreement; (ii) the failure of Employee to perform or observe fully any covenant, agreement or provision to be performed or observed by it pursuant to this Agreement; or (iii) any reckless, tortious, malicious or criminal act of Employee, including, without limitations, acts of omission in which there was a duty to disclose or warn Company.

9.3           Insurance Provided by Company.   As soon as practicable after the Effective Date, the Company shall obtain a directors and officers liability insurance policy covering all directors and officers of the Company, including Employee, which insurance policy shall provide adequate insurance coverage for each of such persons, as shall be approved by the Board of Directors of the Company.

10.          Assignment; Binding Effect.  Employee understands that Employee has been selected for employment by the Company on the basis of Employee’s personal qualifications, experience, and skills.  Employee shall have no right to assign and shall not assign or purport to assign any portion of Employee’s performance or any other rights or obligations under this Agreement.  This Agreement may not be assigned or transferred by the Company, provided that nothing in this Agreement shall prevent the consolidation, merger, or sale of the Company or a sale of any or all or substantially all of its assets or the assignment of this Agreement pursuant thereto.  Subject to the foregoing restriction on assignment by Employee, this Agreement shall be binding upon, inure to the benefit of, and be enforceable by the parties hereto and their respective heirs, legal representatives, successors, and assigns.

11.          Additional Provisions.

11.1           Amendments; Waivers; Remedies.  This Agreement may not be amended, and no provision of this Agreement may be waived, except by a writing signed by Employee and by a duly authorized representative of the Company.  Failure to exercise any right under this Agreement shall not constitute a waiver of such right.  Any waiver of any breach of this Agreement shall not operate as a waiver of any subsequent breaches.  All rights or remedies specified for a party herein shall be cumulative and in addition to all other rights and remedies of the party hereunder or under applicable law.

 

  

10

  

 

11.2           Notices.  Any notice, request, instruction, or other document required by the terms of this Agreement, or deemed by any of the Parties hereto to be desirable, to be given to any other party hereto shall be in writing and shall be given by personal delivery, overnight delivery, mailed by registered or certified mail, postage prepaid, with return receipt requested, or sent by facsimile transmission to the addresses of the Parties as follows:

	
  

	
Company’s Notice Address:

	
OncoVista Innovative Therapies, Inc.

14785 Omicron Drive, Suite 104

San Antonio, Texas 78245-3222

Telephone:  (210) 677-6000

Facsimile:  (210) 677-6001

	
  

	
Employee’s Notice Address:

	
Tamas Bakos

9230 Camborne

San Antonio, Texas 78250

Telephone:  (210) 509-0514

The persons and addresses set forth above may be changed from time to time by a notice sent as aforesaid.  If notice is given by personal delivery or overnight delivery in accordance with the provisions of this Section, such notice shall be conclusively deemed given at the time of such delivery provided a receipt is obtained from the recipient.  If notice is given by mail in accordance with the provisions of this Section, such notice shall be conclusively deemed given upon receipt and delivery or refusal.  If notice is given by facsimile transmission in accordance with the provisions of this Section, such notice shall be conclusively deemed given at the time of delivery if during business hours and if not during business hours, at the next business day after delivery, provided a confirmation is obtained by the sender.

11.3           Severability.  If any provision of this Agreement shall be held by a court of competent jurisdiction to be invalid, unenforceable, or void, such provision shall be enforced to the fullest extent permitted by law, and the remainder of this Agreement shall remain in full force and effect.  In the event that the time period or scope of any provision is declared by a court of competent jurisdiction to exceed the maximum time period or scope that such court deems enforceable, then such court shall reduce the time period or scope to the maximum time period or scope permitted by law.

11.4           Taxes.  Any income taxes required to be paid in connection with the payments due hereunder, shall be borne by the party required to make such payment.  Any withholding taxes in the nature of a tax on income shall be deducted from payments due, and the party required to withhold such tax shall furnish to the party receiving such payment all documentation necessary to prove the proper amount to withhold of such taxes and to prove payment to the tax authority of such required withholding.

11.5           Governing Law.  The validity, interpretation, enforceability and performance of this Agreement shall be governed by and construed in accordance with the laws of the State of Texas, without regard to conflict of laws principles.

 

  

11

  

11.6           Exclusive Jurisdiction and Venue.   Each of the parties hereto irrevocably submits to the sole and exclusive jurisdiction and venue of the state and federal courts of the State of Texas located in Bexar County and the Federal Courts of the United States of America located in the Western District of Texas, San Antonio Division, for the purposes of any suit, action, or other proceeding arising out of this Agreement or any transaction contemplated hereby.

11.7           Interpretation.  This Agreement shall be construed as a whole, according to its fair meaning, and not in favor of or against any party.  Sections and section headings contained in this Agreement are for reference purposes only, and shall not affect, in any manner, the meaning or interpretation of this Agreement.  Whenever the context requires, references to the singular shall include the plural and the plural the singular.

11.8           Survival.  All of those portions of this Agreement that require performance by Employee or the Company following termination of Employee’s employment hereunder shall survive any termination of this Agreement.

11.9           Counterparts; Facsimile.  This Agreement may be executed in several counterparts (including by means of facsimile signature pages), each of which shall be deemed an original but all of which shall constitute one and the same instrument.

11.10         Authority.  Each party represents and warrants that such party has the right, power, and authority to enter into and execute this Agreement and to perform and discharge all of the obligations hereunder, and that this Agreement constitutes the valid and legally binding agreement and obligation of such party and is enforceable in accordance with its terms.

11.11         Entire Agreement.  This Agreement (including the Exhibits attached hereto, which are incorporated herein by reference) is the final, complete, and exclusive agreement of the parties with respect to the subject matter hereof and supersedes and merges all prior or contemporaneous representations, discussions, proposals, negotiations, conditions, communications, and agreements, whether written or oral, between the parties relating to the subject matter hereof and all past courses of dealing or industry custom.  No oral statements or prior written material not specifically incorporated herein shall be of any force and effect, and no changes in or additions to this Agreement shall be recognized unless incorporated herein by amendment, as provided herein (such amendment to become effective on the date stipulated therein).

11.12         Employee Acknowledgment.  Employee acknowledges that, before signing this Agreement, Employee was advised of his right to consult with an attorney of his choice to review this Agreement and that Employee had sufficient opportunity to have an attorney review the provisions of this Agreement and negotiate its terms.  Employee further acknowledges that Employee had a full and adequate opportunity to review this Agreement before signing it; that Employee carefully read and fully understood all the provisions of this Agreement before signing it, including the rights and obligations of the parties; and that Employee has entered into this Agreement knowingly and voluntarily.

 

  

12

  

11.13           Attorneys’ Fees.  In the event any party hereto shall commence legal proceedings against the other to enforce the terms hereof, or to declare rights hereunder, as the result of a breach of any covenant or condition of this Agreement, the prevailing party in any such proceeding shall be entitled to recover from the losing party its costs of suit, including reasonable attorneys’ fees, as may be fixed by the court.

 

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

	  	
COMPANY:

	  	  
	  	
OncoVista Innovative Therapies, Inc.

	  	  
	  	

	  	
Signature

	  	  
	  	
Name Printed: Alexander L. Weis, Ph.D.

	  	  
	  	
EMPLOYEE:

	  	  
	  	  
	  	
Signature

	  	  
	  	
Name Printed: Tamas Bakos

  

13LEASE AGREEMENT BETWEEN

 

LIPITEK INTERNATIONAL, INC.,

 

AS LANDLORD, AND

 

ONCOVISTA, INC.,

 

AS TENANT

 

DATED JANUARY 3, 2011

  

  

  

 

BASIC LEASE INFORMATION

 

	
Lease Date:

	 	
January 3, 2011

	  	 	  
	
Landlord:

	 	
Lipitek International, Inc., a Delaware corporation

	  	 	  
	
Tenant:

	 	
Oncovista, Inc., a Delaware corporation

	  	 	  
	
Premises:

	 	
Unit Nos. 1, 2 and 3, containing 5,725 rentable square feet, in the office building commonly known as Texas Research Park (the “Building”), and whose street address is 14785 Omicron Drive, San Antonio, Texas 78245, together with the right to use the Common Areas of the Building.  The Premises are outlined on the plan attached to the Lease as Exhibit A.  The term “Project” shall collectively refer to the Building, the land on which it is located and the driveways, parking facilities, and similar improvements and easements associated with the foregoing or the operation thereof.

	  	 	  
	
Term:

	 	
36 full calendar months, plus any partial month from the Commencement Date to the end of the month in which the Commencement Date falls, starting on the Commencement Date and ending at 5:00 p.m. local time on the last day of _______, subject to adjustment and earlier termination as provided in the Lease.

	  	 	  
	
Commencement Date:

	 	
The earlier of (a) the date on which Tenant occupies any portion of the Premises and begins conducting business therein, or (b) _____________, 200__.

	  	 	  
	
Basic Rent

	 	
Basic Rent shall be the following amounts for the following periods of time:

	  	 	  

	 	 	
Lease Month

	 	 	
Annual Basic Rent

	 	 	
Monthly Basic Rent

	 
	 	 	1 – 12	 	 	$	144,000.00	 	 	$	12,000.00	 
	 	 	13 - 24	 	 	$	144,000.00	 	 	$	12,000.00	 
	 	 	25 – 36	 	 	$	144,000.00	 	 	$	12,000.00	 

 

	  	 	
As used herein, the term “Lease Month” means each calendar month during the Term (and if the Commencement Date does not occur on the first day of a calendar month, the period from the Commencement Date to the first day of the next calendar month shall be included in the first Lease Month for purposes of determining the duration of the Term and the monthly Basic Rent rate applicable for such partial month).

	  	 	  
	
Security Deposit:

	 	
$ 0.0_______________.

	  	 	  
	
Rent:

	 	
Basic Rent, plus all Taxes, Electrical and other utility costs and all other sums that Tenant may owe to Landlord or otherwise be required to pay under this Lease.

	  	 	  
	
Permitted Use:

	 	
Research and development laboratories and related general office use.

  

  

  

	
Initial Liability Insurance Amount:

	 	
$3,000,000

	 	 	 
	
Tenant’s Address:

	 	
Prior to Commencement Date:

_________________________________

_________________________________

_________________________________

Attention: ____________________

Telephone: _____-_____-__________

Telecopy: _____-_____-__________

	 	
Following Commencement Date:

Oncovista, Inc.

14785 Omicron Drive

San Antonio, Texas  78245

Attention: __________________

Telephone: _____-_____-_________

Telecopy: _____-_____-__________

	 	 	 	 	 
	
Landlord’s Address:

	 	
For all Notices:

_________________________________

_________________________________

Attention:  ________________________

Telephone: _____-_____-__________

Telecopy: _____-_____-__________

	 	
With a copy to:

 

 

The foregoing Basic Lease Information is incorporated into and made a part of this Lease.  If any conflict exists between any Basic Lease Information and the Lease, then the Lease shall control.

 

	
LANDLORD:

	
LIPITEK INTERNATIONAL, INC.

	  	  
	  	
By:

	  
	  	
Name:

	  
	  	
Title:

	  

 

	
TENANT:

	
ONCOVISTA, INC.

	  	  
	  	
By:

	  
	  	
Name:

	  
	  	
Title:

	  

  

  

  

 

LEASE

 

This Lease Agreement (this “Lease”) is entered into as of January 3, 2011, between LIPITEK INTERNATIONAL, INC., a Delaware corporation (“Landlord”), and ONCOVISTA, INC., a Delaware corporation (“Tenant”).

 

I.           Definitions and Basic Provisions.  The definitions and basic provisions set forth in the Basic Lease Information (the “Basic Lease Information”) executed by Landlord and Tenant contemporaneously herewith are incorporated herein by reference for all purposes.  Additionally, the following terms shall have the following meanings when used in this Lease: “Affiliate” means any person or entity which, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with the party in question; “Building’s Structure” means the Building’s exterior walls, roof, elevator shafts, footings, foundations, structural portions of load-bearing walls, structural floors and subfloors, and structural columns and beams; “Building’s Systems” means the Building’s HVAC, life-safety, plumbing, electrical, and mechanical systems; “including” means including, without limitation; “Laws” means all federal, state, and local laws, ordinances, rules and regulations, all court orders, governmental directives, and governmental orders and all interpretations of the foregoing, and all restrictive covenants affecting the Project, and “Law” means any of the foregoing; and “Tenant Party” means any of the following persons:  Tenant; any assignees claiming by, through, or under Tenant; any subtenants claiming by, through, or under Tenant; and any of their respective agents, contractors, employees, licensees, guests and invitees.

 

II.          Lease Grant.   Subject to the terms of this Lease, Landlord leases to Tenant, and Tenant leases from Landlord, the Premises.

 

III.        Tender of Possession.   Landlord and Tenant presently anticipate that possession of the Premises will be tendered to Tenant on or about January 3, 2011 (the “Estimated Delivery Date”).  If Landlord is unable to tender possession of the Premises to Tenant by the Estimated Delivery Date, then a) the validity of this Lease shall not be affected or impaired thereby, b) Landlord shall not be in default hereunder or be liable for damages therefor, and c) Tenant shall accept possession of the Premises when Landlord tenders possession thereof to Tenant. By occupying the Premises, Tenant shall be deemed to have accepted the Premises in their condition as of the date of such occupancy, subject to the performance of punch-list items that remain to be performed by Landlord, if any.  Occupancy of the Premises by Tenant prior to the Commencement Date shall be subject to all of the provisions of this Lease excepting only those requiring the payment of Basic Rent, Additional Rent, Taxes and Electrical Costs (each as defined herein).

 

IV.        Rent.  Tenant shall timely pay to Landlord Rent, without notice, demand, deduction or set off (except as otherwise expressly provided herein), by good and sufficient check drawn on a national banking association at Landlord’s address provided for in this Lease or as otherwise specified by Landlord and shall be accompanied by all applicable state and local sales or use taxes.  The obligations of Tenant to pay Basic Rent and other sums to Landlord and the obligations of Landlord under this Lease are independent obligations.  Basic Rent, adjusted as herein provided, shall be payable monthly in advance.  The first monthly installment of Basic Rent shall be payable contemporaneously with the execution of this Lease; thereafter, Basic Rent shall be payable on the first day of each month beginning on the first day of the second full calendar month of the Term.  The monthly Basic Rent for any partial month at the beginning of the Term shall equal the product of 1/365 of the annual Basic Rent in effect during the partial month and the number of days in the partial month and shall be due on the Commencement Date.  Payments of Basic Rent for any fractional calendar month at the end of the Term shall be similarly prorated.  Tenant shall pay Additional Rent at the same time and in the same manner as Basic Rent.

 

V.         Utilities; Taxes.  Tenant shall independently contract for, and pay for, all utilities serving the Premises.  Tenant shall be responsible for paying, when due, any and all Impositions when due.  The term “Impositions” means all real estate taxes, business improvement taxes or charges, water taxes or charges, sewer rents, license or permit fees and other governmental charges.

 

  

1

  

 

VI.        Improvements; Alterations; Repairs; Maintenance.  Improvements to the Premises shall be installed at Tenant’s expense only in accordance with plans and specifications which have been previously submitted to and approved in writing by Landlord, which approval shall be governed by the provisions set forth in this Section.  No alterations or physical additions in or to the Premises may be made without Landlord’s prior written consent, which shall not be unreasonably withheld or delayed; however, Landlord may withhold its consent to any alteration or addition that would adversely affect (in the reasonable discretion of Landlord) the i) Building’s Structure or the Building’s Systems (including the Building’s restrooms or mechanical rooms), ii) exterior appearance of the Building, iii) appearance of the Building’s common areas or elevator lobby areas, or iv) provision of services to other occupants of the Building.  All alterations, additions, and improvements shall be constructed, maintained, and used by Tenant, at its risk and expense, in accordance with all Laws; Landlord’s consent to or approval of any alterations, additions or improvements (or the plans therefor) shall not constitute a representation or warranty by Landlord, nor Landlord’s acceptance, that the same comply with sound architectural and/or engineering practices or with all applicable Laws, and Tenant shall be solely responsible for ensuring all such compliance.

 

VII.       Repairs; Maintenance.  Tenant shall maintain the Premises in a clean, safe, and operable condition, and shall not permit or allow to remain any waste or damage to any portion of the Premises.  Additionally, Tenant, at its sole expense, shall repair, replace and maintain in good condition and in accordance with all Laws and the equipment manufacturer’s suggested service programs, all portions of the Premises, and all areas, improvements and systems exclusively serving the Premises.  If any such damage occurs outside of the Premises, then Landlord may elect to repair such damage at Tenant’s expense, rather than having Tenant repair such damage.  The cost of all maintenance, repair or replacement work performed by Landlord under this Section shall be paid by Tenant to Landlord within 30 days after Landlord has invoiced Tenant therefor.

 

VIII.     Mechanic’s Liens.  All work performed, materials furnished, or obligations incurred by or at the request of a Tenant Party shall be deemed authorized and ordered by Tenant only, and Tenant shall not permit any mechanic’s liens to be filed against the Premises or the Project in connection therewith.  Upon completion of any such work, Tenant shall deliver to Landlord final lien waivers from all contractors, subcontractors and materialmen who performed such work.  Tenant shall defend, indemnify and hold harmless Landlord and its agents and representatives from and against all claims, demands, causes of action, suits, judgments, damages and expenses (including attorneys’ fees) in any way arising from or relating to the failure by any Tenant Party to pay for any work performed, materials furnished, or obligations incurred by or at the request of a Tenant Party.  This indemnity provision shall survive termination or expiration of this Lease.

 

IX.        Use.  Tenant shall continuously occupy and use the Premises only for the Permitted Use and shall comply with all Laws relating to the use, condition, access to, and occupancy of the Premises and will not commit waste, overload the Building’s Structure or the Building’s Systems or subject the Premises to use that would damage the Premises.

 

X.         Assignment and Subletting.  Tenant shall not, without the prior written consent of Landlord, which consent may not be unreasonably withheld, conditioned or delayed, assign, transfer, or encumber this Lease or any estate or interest herein, sublet any portion of the Premises, or permit the use of the Premises by any parties other than Tenant.

 

  

2

  

 

XI.        Insurance; Waivers; Subrogation; Indemnity.

 

A.           Tenant’s Insurance.   Effective as of the earlier of v) the date Tenant enters or occupies the Premises, or vi) the Commencement Date, and continuing throughout the Term, Tenant shall maintain the following insurance policies: (1) commercial general liability insurance in amounts of $3,000,000 per occurrence or, following the expiration of the initial Term, such other amounts as Landlord may from time to time reasonably require (and, if the use and occupancy of the Premises include any activity or matter that is or may be excluded from coverage under a commercial general liability policy, Tenant shall obtain such endorsements to the commercial general liability policy or otherwise obtain insurance to insure all liability arising from such activity or matter in such amounts as Landlord may reasonably require), insuring Tenant, Landlord, and, if requested in writing by Landlord, Landlord’s Mortgagee, against all liability for injury to or death of a person or persons or damage to property arising from the use and occupancy of the Premises and (without implying any consent by Landlord to the installation thereof) the installation, operation, maintenance, repair or removal of Tenant’s equipment, (2) insurance covering the full value of all alterations and improvements and betterments in the Premises, naming Landlord and Landlord’s Mortgagee as additional loss payees as their interests may appear, (3) insurance covering the full value of all furniture, trade fixtures and personal property (including property of Tenant or others) in the Premises or otherwise placed in the Project by or on behalf of a Tenant Party (including Tenant’s equipment), (4) contractual liability insurance sufficient to cover Tenant’s indemnity obligations hereunder (but only if such contractual liability insurance is not already included in Tenant’s commercial general liability insurance policy), (5) worker’s compensation insurance, and (6) business interruption insurance in an amount reasonably acceptable to Landlord.  Tenant’s insurance shall provide primary coverage to Landlord when any policy issued to Landlord provides duplicate or similar coverage, and in such circumstance Landlord’s policy will be excess over Tenant’s policy.  Tenant shall furnish to Landlord certificates of such insurance and such other evidence satisfactory to Landlord of the maintenance of all insurance coverages required hereunder at least ten days prior to the earlier of the Commencement Date or the date Tenant enters or occupies the Premises, and at least 15 days prior to each renewal of said insurance, and Tenant shall obtain a written obligation on the part of each insurance company to notify Landlord at least 30 days before cancellation or a material change of any such insurance policies.  All such insurance policies shall be in form, and issued by companies with an A.M. Best rating of A+:VII or better, reasonably satisfactory to Landlord.  If Tenant fails to comply with the foregoing insurance requirements or to deliver to Landlord the certificates or evidence of coverage required herein, Landlord, in addition to any other remedy available pursuant to this Lease or otherwise, may, but shall not be obligated to, obtain such insurance and Tenant shall pay to Landlord on demand the premium costs thereof, plus an administrative fee of 15% of such cost.

 

B.           Landlord’s Insurance.  Throughout the Term of this Lease, Landlord shall maintain, as a minimum, the following insurance policies:  (1) property insurance for the Building’s replacement value (excluding property required to be insured by Tenant), less a commercially-reasonable deductible if Landlord so chooses, and (2) commercial general liability insurance in an amount of not less than $3,000,000.  Landlord may, but is not obligated to, maintain such other insurance and additional coverages as it may deem necessary.  The cost of all insurance carried by Landlord with respect to the Project shall be paid by the Tenant.  The foregoing insurance policies and any other insurance carried by Landlord shall be for the sole benefit of Landlord and under Landlord’s sole control, and Tenant shall have no right or claim to any proceeds thereof or any other rights thereunder.

 

C.           No Subrogation; Waiver of Property Claims.  Landlord and Tenant each waives any claim it might have against the other for any damage to or theft, destruction, loss, or loss of use of any property, to the extent the same is insured against under any insurance policy of the types described in this Section that covers the Project, the Premises, Landlord’s or Tenant’s fixtures, personal property, leasehold improvements, or business, or is required to be insured against under the terms hereof, regardless of whether the negligence of the other party caused such Loss (defined below).

 

D.           Indemnity.  Tenant shall defend, indemnify, and hold harmless Landlord and its representatives and agents from and against all claims, demands, liabilities, causes of action, suits, judgments, damages, and expenses (including reasonable attorneys’ fees) arising from any injury to or death of any person or the damage to or theft, destruction, loss, or loss of use of, any property or inconvenience (a “Loss”) (1) occurring in or on the Project (other than within the Premises) to the extent caused by the negligence or willful misconduct of any Tenant Party,(2) occurring in the Premises, or(3) arising out of the installation, operation, maintenance, repair or removal of any property of any Tenant Party located in or about the Project, including Tenant’s equipment.  Landlord shall defend, indemnify, and hold harmless Tenant and its agents from and against all claims, demands, liabilities, causes of action, suits, judgments, damages, and expenses (including reasonable attorneys’ fees) for any Loss arising from any occurrence in or on the Building’s common areas to the extent caused by the negligence or willful misconduct of Landlord or its agents.  The indemnities set forth in this Lease shall survive termination or expiration of this Lease and shall not terminate or be waived, diminished or affected in any manner by any abatement or apportionment of Rent under any provision of this Lease.  If any proceeding is filed for which indemnity is required hereunder, the indemnifying party agrees, upon request therefor, to defend the indemnified party in such proceeding at its sole cost utilizing counsel satisfactory to the indemnified party.

 

  

3

  

 

XII.       Subordination and Non-Disturbance. At Landlord’s option, this Agreement shall be subordinate to any mortgage or other security interest by Landlord which from time to time may encumber all or part of the Property or right-of-way; provided, however, every such mortgage or other security interest shall recognize the validity of this Agreement in the event of a foreclosure of Landlord’s interest and also Tenant’s right to remain in occupancy of and have access to the Premises as long as Tenant is not in default of this Agreement.  Tenant shall execute whatever instruments may reasonably be required to evidence this subordination clause.  In the event the Property is encumbered by a mortgage or other security interest, the Landlord immediately after this Agreement is executed, will obtain and furnish to Tenant, a non-disturbance agreement for each such mortgage or other security interest in recordable form.  In the event the Landlord defaults in the payment and/or other performance of any mortgage or other security interest encumbering the Property, Tenant, may, at its sole option and without obligation, cure or correct Landlord’s default and upon doing so, Tenant shall be subrogated to any and all rights, titles, liens and equities of the holders of such mortgage or security interest and the Tenant shall be entitled to deduct and setoff against all rents that may otherwise become due under this Agreement the sums paid by Tenant to cure or correct such defaults.

 

XIII.      Rules and Regulations.  Tenant shall comply with the rules and regulations of the Project which are attached hereto as Exhibit B [attach condominium rules].  Landlord may, from time to time, change such rules and regulations for the safety, care, or cleanliness of the Project and related facilities, provided that such changes are applicable to all tenants of the Project, will not unreasonably interfere with Tenant’s use of the Premises and are enforced by Landlord in a non-discriminatory manner.  Tenant shall be responsible for the compliance with such rules and regulations by each Tenant Party.

 

XIV.      Condemnation.

 

A.           Total Taking. If the entire Building or Premises are taken by right of eminent domain or conveyed in lieu thereof (a “Taking”), this Lease shall terminate as of the date of the Taking.

 

B.           Partial Taking - Tenant’s Rights. If any part of the Building becomes subject to a Taking and such Taking will prevent Tenant from conducting on a permanent basis its business in the Premises in a manner reasonably comparable to that conducted immediately before such Taking, then Tenant may terminate this Lease as of the date of such Taking by giving written notice to Landlord within 30 days after the Taking, and Basic Rent and Additional Rent shall be apportioned as of the date of such Taking.  If Tenant does not terminate this Lease, then Rent shall be abated on a reasonable basis as to that portion of the Premises rendered untenantable by the Taking.

 

C.           Partial Taking - Landlord’s Rights. If any material portion, but less than all, of the Building becomes subject to a Taking, or if Landlord is required to pay any of the proceeds arising from a Taking to a Landlord’s Mortgagee, then Landlord may terminate this Lease by delivering written notice thereof to Tenant within 30 days after such Taking, and Basic Rent and Additional Rent shall be apportioned as of the date of such Taking.  If Landlord does not so terminate this Lease, then this Lease will continue, but if any portion of the Premises has been taken, Rent shall abate as provided in the last sentence of Section 0.

 

D.           Temporary Taking.  If all or any portion of the Premises becomes subject to a Taking for a limited period of time, this Lease shall remain in full force and effect and Tenant shall continue to perform all of the terms, conditions and covenants of this Lease, including the payment of Basic Rent and all other amounts required hereunder.  If any such temporary Taking terminates prior to the expiration of the Term, Tenant shall restore the Premises as nearly as possible to the condition prior to such temporary Taking, at Tenant’s sole cost and expense.  Landlord shall be entitled to receive the entire award for any such temporary Taking, except that Tenant shall be entitled to receive the portion of such award which vii) compensates Tenant for its loss of use of the Premises within the Term and viii) reimburses Tenant for the reasonable out-of-pocket costs actually incurred by Tenant to restore the Premises as required by this Section.

 

E.           Award. If any Taking occurs, then Landlord shall receive the entire award or other compensation for the Land, the Building, and other improvements taken; however, Tenant may separately pursue a claim (to the extent it will not reduce Landlord’s award) against the condemnor for the value of Tenant’s personal property which Tenant is entitled to remove under this Lease, moving costs, loss of business, and other claims it may have.

 

  

4

  

 

XV.       Fire or Other Casualty.

 

A.           Repair Estimate. If the Premises or the Building are damaged by fire or other casualty (a “Casualty”), Landlord shall, within 90 days after such Casualty, deliver to Tenant a good faith estimate (the “Damage Notice”) of the time needed to repair the damage caused by such Casualty.

 

B.           Tenant’s Rights. If a material portion of the Premises is damaged by Casualty such that Tenant is prevented from conducting its business in the Premises in a manner reasonably comparable to that conducted immediately before such Casualty and Landlord estimates that the damage caused thereby cannot be repaired within 270 days after the commencement of repairs (the “Repair Period”), then Tenant may terminate this Lease by delivering written notice to Landlord of its election to terminate within 30 days after the Damage Notice has been delivered to Tenant.

 

C.           Landlord’s Rights. If a Casualty damages the Premises or a material portion of the Building and(1) Landlord estimates that the damage to the Premises cannot be repaired within the Repair Period,(2) the damage to the Premises exceeds 50% of the replacement cost thereof (excluding foundations and footings), as estimated by Landlord, and such damage occurs during the last two years of the Term,(3) regardless of the extent of damage to the Premises, the damage is not fully covered by Landlord’s insurance policies or Landlord makes a good faith determination that restoring the Building would be uneconomical, or(4) Landlord is required to pay any insurance proceeds arising out of the Casualty to a Landlord’s Mortgagee, then Landlord may terminate this Lease by giving written notice of its election to terminate within 30 days after the Damage Notice has been delivered to Tenant.

 

D.           Repair Obligation. If neither party elects to terminate this Lease following a Casualty, then Landlord shall, within a reasonable time after such Casualty, begin to repair the Premises and shall proceed with reasonable diligence to restore the Premises to substantially the same condition as they existed immediately before such Casualty; however, Landlord shall not be required to repair or replace any alterations or betterments within the Premises (which shall be promptly and with due diligence repaired and restored by Tenant at Tenant’s sole cost and expense) or any furniture, equipment, trade fixtures or personal property of Tenant or others in the Premises or the Building, and Landlord’s obligation to repair or restore the Premises shall be limited to the extent of the insurance proceeds actually received by Landlord for the Casualty in question.  If this Lease is terminated under the provisions of this Section 0, Landlord shall be entitled to the full proceeds of the insurance policies providing coverage for all alterations, improvements and betterments in the Premises (and, if Tenant has failed to maintain insurance on such items as required by this Lease, Tenant shall pay Landlord an amount equal to the proceeds Landlord would have received had Tenant maintained insurance on such items as required by this Lease).

 

E.           Abatement of Rent. If the Premises are damaged by Casualty, Rent for the portion of the Premises rendered untenantable by the damage shall be abated on a reasonable basis from the date of damage until the completion of Landlord’s repairs (or until the date of termination of this Lease by Landlord or Tenant as provided above, as the case may be), unless a Tenant Party caused such damage, in which case, Tenant shall continue to pay Rent without abatement.

XVI.      Personal Property Taxes.  Tenant shall be liable for all taxes levied or assessed against personal property, furniture, or fixtures placed by Tenant in the Premises or in or on the Building or Project.  If any taxes for which Tenant is liable are levied or assessed against Landlord or Landlord’s property and Landlord elects to pay the same, or if the assessed value of Landlord’s property is increased by inclusion of such personal property, furniture or fixtures and Landlord elects to pay the taxes based on such increase, then Tenant shall pay to Landlord, within 30 days following written request therefor, the part of such taxes for which Tenant is primarily liable hereunder; however, Landlord shall not pay such amount if Tenant notifies Landlord that it will contest the validity or amount of such taxes before Landlord makes such payment, and thereafter diligently proceeds with such contest in accordance with Law and if the non-payment thereof does not pose a threat of loss or seizure of the Project or interest of Landlord therein or impose any fee or penalty against Landlord.

 

  

5

  

 

XVII.    Default.  In the event there is a default by the Tenant with respect to any of the provisions of this Agreement or its obligations under it, including the payment of rent, the Landlord shall give Tenant written notice of such default.  After receipt of such written notice, the Tenant shall have fifteen (15) days in which to cure any monetary default and thirty (30) days in which to cure any non-monetary default, provided the Tenant shall have such extended period as may be required beyond the thirty (30) days if the nature of the cure is such that it reasonably requires more than thirty (30) days and the Tenant commences the cure within the thirty (30) day period and thereafter continuously and diligently pursues the cure to completion.  The Landlord may not maintain any action or effect any remedies for default against the Tenant unless and until the Tenant has failed to cure the same within the time periods provided in this Section.

 

XVIII.   Surrender of Premises.  At the expiration or termination of this Lease, Tenant shall deliver to Landlord the Premises with all improvements located therein in good repair and condition, free of hazardous materials placed on the Premises during the Term, broom-clean, reasonable wear and tear excepted, and shall deliver to Landlord all keys to the Premises.  Provided that Tenant has performed all of its obligations hereunder, Tenant may remove all unattached trade fixtures, furniture, and personal property placed in the Premises or elsewhere in the Building by Tenant (but Tenant may not remove any such item which was paid for, in whole or in part, by Landlord or any wiring or cabling unless Landlord requires such removal).  The provisions of this Section shall survive the end of the Term.

 

XIX.      Holding Over.  If Tenant fails to vacate the Premises at the end of the Term, then Tenant shall be a tenant at sufferance and, in addition to all other damages and remedies to which Landlord may be entitled for such holding over, Tenant shall pay 125% of the Rent payable during the last month of the Term.  If Tenant fails to surrender the Premises upon the termination or expiration of this Lease, in addition to any other liabilities to Landlord accruing therefrom, Tenant shall protect, defend, indemnify and hold Landlord harmless from all loss, costs (including reasonable attorneys’ fees) and liability resulting from such failure, including any claims made by any succeeding tenant founded upon such failure to surrender, and any lost profits to Landlord resulting therefrom.

 

XX.       Miscellaneous.

 

A.           Landlord Transfer. Landlord may transfer any portion of the Project and any of its rights under this Lease.  If Landlord assigns its rights under this Lease, then Landlord shall thereby be released from any further obligations hereunder arising after the date of transfer, provided that the assignee assumes in writing Landlord’s obligations hereunder arising from and after the transfer date.

 

B.           Landlord’s Liability. The liability of Landlord (and its partners, shareholders or members) to Tenant (or any person or entity claiming by, through or under Tenant) for any default by Landlord under the terms of this Lease or any matter relating to or arising out of the occupancy or use of the Premises and/or other areas of the Building shall be limited to Tenant’s actual direct, but not consequential, damages therefor and shall be recoverable only from the interest of Landlord in the Building, and Landlord (and its partners, shareholders or members) shall not be personally liable for any deficiency.

 

C.           Force Majeure. Other than for Tenant’s obligations under this Lease that can be performed by the payment of money (e.g., payment of Rent and maintenance of insurance), whenever a period of time is herein prescribed for action to be taken by either party hereto, such party shall not be liable or responsible for, and there shall be excluded from the computation of any such period of time, any delays due to strikes, riots, acts of God, shortages of labor or materials, war, terrorist acts or activities, governmental laws, regulations, or restrictions, or any other causes of any kind whatsoever which are beyond the control of such party.

 

D.           Brokerage. Neither Landlord nor Tenant has dealt with any broker or agent in connection with the negotiation or execution of this Lease, other than ______________________, whose commission shall be paid by ______________ pursuant to a separate written agreement.  Tenant and Landlord shall each indemnify the other against all costs, expenses, attorneys’ fees, liens and other liability for commissions or other compensation claimed by any broker or agent claiming the same by, through, or under the indemnifying party.

 

E.           Estoppel Certificates. From time to time, Tenant shall furnish to any party designated by Landlord, within ten days after Landlord has made a request therefor, a certificate signed by Tenant confirming and containing such factual certifications and representations as to this Lease as Landlord may reasonably request.

 

  

6

  

 

F.           Notices. All notices and other communications given pursuant to this Lease shall be in writing and shall be ix) mailed by first class, United States Mail, postage prepaid, certified, with return receipt requested, and addressed to the parties hereto at the address specified in the Basic Lease Information, x) hand delivered to the intended addressee, xi) sent by a nationally recognized overnight courier service, or xii) sent by facsimile transmission during normal business hours followed by a confirmatory letter sent in another manner permitted hereunder.  All notices shall be effective upon delivery to the address of the addressee (even if such addressee refuses delivery thereof).  The parties hereto may change their addresses by giving notice thereof to the other in conformity with this provision.

 

G.           Separability. If any clause or provision of this Lease is illegal, invalid, or unenforceable under present or future laws, then the remainder of this Lease shall not be affected thereby and in lieu of such clause or provision, there shall be added as a part of this Lease a clause or provision as similar in terms to such illegal, invalid, or unenforceable clause or provision as may be possible and be legal, valid, and enforceable.

 

H.           Amendments; Binding Effect; No Electronic Records. This Lease may not be amended except by instrument in writing signed by Landlord and Tenant.  No provision of this Lease shall be deemed to have been waived by Landlord unless such waiver is in writing signed by Landlord, and no custom or practice which may evolve between the parties in the administration of the terms hereof shall waive or diminish the right of Landlord to insist upon the performance by Tenant in strict accordance with the terms hereof.  Landlord and Tenant hereby agree not to conduct the transactions or communications contemplated by this Lease by electronic means, except by facsimile transmission as specifically set forth in Section 0; nor shall the use of the phrase “in writing” or the word “written” be construed to include electronic communications except by facsimile transmissions as specifically set forth in Section 0.  The terms and conditions contained in this Lease shall inure to the benefit of and be binding upon the parties hereto, and upon their respective successors in interest and legal representatives, except as otherwise herein expressly provided.  This Lease is for the sole benefit of Landlord and Tenant, and, other than Landlord’s Mortgagee, no third party shall be deemed a third party beneficiary hereof.

 

I.           Quiet Enjoyment. Provided Tenant has performed all of its obligations hereunder, Tenant shall peaceably and quietly hold and enjoy the Premises for the Term, without hindrance from Landlord or any party claiming by, through, or under Landlord, but not otherwise, subject to the terms and conditions of this Lease.

 

J.           No Merger. There shall be no merger of the leasehold estate hereby created with the fee estate in the Premises or any part thereof if the same person acquires or holds, directly or indirectly, this Lease or any interest in this Lease and the fee estate in the leasehold Premises or any interest in such fee estate.

 

K.           No Offer. The submission of this Lease to Tenant shall not be construed as an offer, and Tenant shall not have any rights under this Lease unless Landlord executes a copy of this Lease and delivers it to Tenant.

 

L.           Entire Agreement. This Lease constitutes the entire agreement between Landlord and Tenant regarding the subject matter hereof and supersedes all oral statements and prior writings relating thereto.  Except for those set forth in this Lease, no representations, warranties, or agreements have been made by Landlord or Tenant to the other with respect to this Lease or the obligations of Landlord or Tenant in connection therewith.  The normal rule of construction that any ambiguities be resolved against the drafting party shall not apply to the interpretation of this Lease or any exhibits or amendments hereto.

 

M.           Waiver of Jury Trial. TO THE MAXIMUM EXTENT PERMITTED BY LAW, LANDLORD AND TENANT EACH WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY LITIGATION OR TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE ARISING OUT OF OR WITH RESPECT TO THIS LEASE OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED HERETO.

 

N.           Governing Law. This Lease shall be governed by and construed in accordance with the laws of the state in which the Premises are located.

 

  

7

  

 

O.           Recording.  Tenant shall not record this Lease or any memorandum of this Lease without the prior written consent of Landlord, which consent may be withheld or denied in the sole and absolute discretion of Landlord, and any recordation by Tenant shall be a material breach of this Lease.  Tenant grants to Landlord a power of attorney to execute and record a release releasing any such recorded instrument of record that was recorded without the prior written consent of Landlord.

 

P.           Water or Mold Notification.  To the extent Tenant or its agents or employees discover any water leakage, water damage or mold in or about the Premises or Project, Tenant shall promptly notify Landlord thereof in writing.

 

Q.           Authority. Tenant (if a corporation, partnership or other business entity) hereby represents and warrants to Landlord that Tenant is a duly formed and existing entity qualified to do business in the state in which the Premises are located, that Tenant has full right and authority to execute and deliver this Lease, and that each person signing on behalf of Tenant is authorized to do so.  Landlord hereby represents and warrants to Tenant that Landlord is a duly formed and existing entity qualified to do business in the state in which the Premises are located, that Landlord has full right and authority to execute and deliver this Lease, and that each person signing on behalf of Landlord is authorized to do so.

 

R.           Hazardous Materials. The term “Hazardous Materials” means any substance, material, or waste which is now or hereafter classified or considered to be hazardous, toxic, or dangerous under any Law relating to pollution or the protection or regulation of human health, natural resources or the environment, or poses or threatens to pose a hazard to the health or safety of persons on the Premises or in the Project.  Tenant shall not use, generate, store, or dispose of, or permit the use, generation, storage or disposal of Hazardous Materials on or about the Premises or the Project except in a manner and quantity necessary for the ordinary performance of Tenant’s business, and then in compliance with all Laws.  If Tenant breaches its obligations under this Section, Landlord may immediately take any and all action reasonably appropriate to remedy the same, including taking all appropriate action to clean up or remediate any contamination resulting from Tenant’s use, generation, storage or disposal of Hazardous Materials.

 

S.           Employment Contingency. The parties hereby agree that if, for any reason whatsoever, Dr. Alexander Weis, shall no longer be employed by Tenant, this Lease shall become terminable on six (6) months prior written notice from Dr. Alexander Weis.

 

T.           List of Exhibits. All exhibits and attachments attached hereto are incorporated herein by this reference.

 

	
  

	
Exhibit A -

	
Outline of Premises

	
  

	
Exhibit B -

	
Condominium Rules and Regulations

 

  

8

  

 

IN WITNESS WHEREOF, and in consideration of the mutual entry into this Lease and for other good and valuable consideration, and intending to be legally bound, each party hereto has caused this Lease to be duly executed under seal on the respective dates set forth below, but for reference purposes, this Lease shall be dated as of the date first above written.  If the execution date is left blank, this Lease shall be deemed executed as of the date first written above.

 

	
LANDLORD:

	
LIPITEK INTERNATIONAL, INC.

	  	  
	  	
By:

	
	  	
Name: Alexander L. Weis

	  	
Title: Chief Executive Officer

	  	
Execution Date:

	  	  
	
TENANT:

	
ONCOVISTA, INC.

	  	  
	  	
By:

	
	  	
Name: Michael F. Moloney

	  	
Title: Chief Operating Officer

	  	
Execution Date:

 

  

9

  

 

EXHIBIT A

 

OUTLINE OF PREMISES

 

  

1

  

 

EXHIBIT B

 

CONDOMINIUM RULES AND REGULATIONS

 

  

1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00187-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00187-of-00352.parquet"}]]