Document:

exv10w4

 

Exhibit 10.4

[NOTE: Confidential Materials omitted and filed separately with the Securities and Exchange Commission. 
Asterisks denote omissions.]

2006 Long Term Incentive Program 

Award Date:

March 31, 2006

Unit Allocation Ratio:

	 	 	 	 	 	 
	 
	 	Job Category	 	 	Ratio of RSUs/PSUs by job level	 
	 	CEO

	 	 	50/50	 
	 	SVP

	 	 	50/50	 
	 	VP

	 	 	50/50	 
	 	Sr Mgr

	 	 	70/30	 
	 	Manager/IC (1)

	 	 	70/30	 
	 	New Hire Pool

	 	 	RSU only	 
	 

			
	 	 	(1) IC represents Individual Contributors who may be identified by SVP to
receive grant
	 
	 	 	RSUs = Restricted Stock Units
	 
	 	 	PSUs = Performance Stock Units

Vesting Schedule:

The award vests at a rate of 25% each year over 4 years.

Performance-Based Restricted Stock Unit Calculations:

The number of PSUs received under this Long Term Incentive Program is based on the following:

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	2006 PSU Metric	 
	 	Metric	 	 	Threshold	 	 	Target	 	 	Maximum	 
	 	Adjusted Net Income*

	 	 	$[**]
	 	 	$[**]
	 	 	$[**]	 
	 

			
	 	 	*as defined in the Amended and Restated Short-Term Incentive Program

	 	 	 	 	 	 	 	 
	 
	 	2006 Payout Levels	 
	 	2006 Adjusted Net Income Result	 	 	Shares Granted as a Percent of PSU Target Award	 
	 	Threshold

	 	 	 	50	%	 
	 	Target

	 	 	 	100	%	 
	 	Maximum

	 	 	 	200	%	 
	 

     *shares granted are ratable between the three payout levels<PAGE>

                                                                   EXHIBIT 10.35

                            SECOND AMENDMENT TO LEASE

      THIS SECOND AMENDMENT TO LEASE dated as of this 28 day of March, 2006 by
and between BP PROSPECT PLACE LLC, a Delaware limited liability company (as
successor-in-interest to The Realty Associates Fund III, "Landlord") and
OXIGENE, INC., a Delaware corporation ("Tenant").

                                    RECITALS

      By Lease dated August 8, 2003 (the "Lease"), Landlord did lease to Tenant
and Tenant did hire and lease from Landlord certain premises containing 4,000
square feet of rentable floor area (the "Rentable Floor Area of the Original
Premises") on the fifth (5th) floor of the building (the "Building") known as
Prospect Place and numbered 230 Third Avenue, Waltharn, Massachusetts (referred
to in the Lease as the "Premises" and hereinafter sometimes referred to as the
"Original Premises").

      By Lease Modification Agreement No. 1 (the "First Amendment"), Landlord
and Tenant agreed to relocate the Original Premises to certain premises
containing 9,901 square feet of rentable floor area (the "Rentable Floor Area of
the Original Premises") on the sixth (6th) floor of the Building (referred to in
the First Amendment as the "Replacement Premises" and hereinafter sometimes
referred to as the "Existing Premises"),

      Tenant has determined to Lease from Landlord an additional 3,422 square
feet of rentable floor area (the "Rentable Floor Area of the Additional
Premises") located on the sixth (6th) floor of the Building, which space is
shown on Exhibit A attached hereto and made a part hereof (the "Additional
Premises").

      Landlord and Tenant are entering into this instrument to set forth said
leasing of the Additional Premises, to integrate the Additional Premises into
the Lease and to amend the Lease.

      NOW THEREFORE, in consideration of One Dollar ($1.00) and other good and
valuable consideration in hand this date paid by each of the parties to the
other, the receipt and sufficiency of which are hereby severally acknowledged,
and in further consideration of the mutual promises herein contained, Landlord
and Tenant hereby agree to and with each other as follows:

1.    Effective as of the Additional Premises Commencement Date (as defined in
      Section I(B) of Exhibit B to this Second Amendment), the Additional
      Premises shall constitute a part of the "Premises" demised to Tenant under
      the Lease, so that the Premises (as defined in Section 1.2 of the Lease)
      shall include both the Existing Premises and the Additional Premises and
      shall contain a total of 13,323 square feet of rentable floor area. By way
      of example the option to extend the Term of the Lease provided in Section
      27 of the Lease

                                      -1-

<PAGE>

      shall apply to both the Existing Premises and the Additional Premises
      collectively but not to either space independently.

2.    Effective as of the Additional Premises Commencement Date, the following
      definitions set forth in Article 1 of the Lease (as amended by Section 2
      of the First Amendment) shall be deemed amended as follows:

PREMISES:                     A portion of the sixth (6th) floor of the
                              Building, as shown on Exhibit A attached to this
                              Second Amendment

RENTABLE FLOOR AREA OF
THE PREMISES:                 Agreed to be 13,323 rentable square feet.

TERM:                         (i) As to the Existing Premises, a period
                              beginning on September 2, 2005 and ending on
                              May 31, 2009, unless extended or sooner terminated
                              as provided in the Lease.

                              (ii) As to the Additional Premises, a period
                              beginning on the Additional Premises Commencement
                              Date and ending on May 31, 2009, unless extended
                              or sooner terminated as provided in the Lease.

TENANT'S SHARE:               4.55%

EXISTING PREMISES OPERATING
COST BASE YEAR:               Calendar Year 2005

ADDITIONAL PREMISES OPERATING Calendar Year 2006
COST BASE YEAR:

NUMBER OF TENANT
PARKING SPACES:               Forty (40) spaces, to be used in common and on an
                              unassigned basis.

3.    (A)   Base Rent for the Existing Premises shall continue to be payable as
      set forth in the Lease as amended by the First Amendment.

      (B)   Commencing on the Additional Premises Commencement Date and
      continuing through the expiration or earlier termination of the Term, Base
      Rent for the Additional Premises shall be payable as follows:

                                      -2-

<PAGE>

      (i)   For the period commencing on the Additional Premises Commencement
            Date and ending on the end of the last day of the twelfth (12th )
            full calendar month immediately following the Additional Premises
            Commencement Date, at the annual rate of $110,359.50 (being the
            product of (x) $32.25 and (y) the Rentable Floor Area of the
            Additional Premises (being 3,422 square feet)).

      (ii)  For the period commencing on the first day of the thirteenth (13th)
            full calendar month immediately following the Additional Premises
            Commencement Date and ending on the end of the last day of the
            twenty-fourth (24th) full calendar month immediately following the
            Additional Premises Commencement Date, at the annual rate of
            $113,781.50 (being the product of (x) $33.25 and (y) the Rentable
            Floor Area of the Additional Premises).

      (iii) For the period commencing on the first day of the twenty-fifth
            (25th) full calendar month immediately following the Additional
            Premises Commencement Date and ending on May 31, 2009, at the annual
            rate of $117,203.50 (being the product of (x) $34.25 and (y) the
            Rentable Floor Area of the Additional Premises).

      (C) Base Rent for the Premises during any extension option period (if
      exercised) shall be payable as set forth in Section 27 of the Lease.

4.    The work to be performed by Landlord in order to prepare the Additional
      Premises for Tenant's use and occupancy shall be undertaken in accordance
      with the terms and provisions set forth in Exhibit B attached hereto and
      incorporated herein by reference.

5.    (A) Tenant warrants and represents that Tenant has not dealt with any
      broker in connection with the consummation of this Second Amendment other
      than CB Richard Ellis (the "Broker") and in the event any claim is made
      against Landlord relative to dealings by Tenant with brokers, Tenant shall
      defend the claim against Landlord with counsel of Tenant's selection first
      approved by Landlord (which approval will not be unreasonably withheld)
      and save harmless and indemnify Landlord on account of loss, cost or
      damage which may arise by reason of such claim.

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

6.    In no event shall Tenant have the right to terminate or cancel the Lease
      or to withhold rent or to set-off any claim or damages against rent as a
      result of any default by Landlord

                                      -3-

<PAGE>

      or breach by Landlord of its covenants or warranties or promises under the
      Lease, except in the case of a wrongful eviction of Tenant from the
      demised premises (constructive or actual) by Landlord continuing after
      notice to Landlord thereof and a reasonable opportunity for Landlord to
      cure the same. Further, the Tenant shall not assert any right to deduct
      the cost of repairs or any monetary claim against the Landlord from rent
      thereafter due and payable, but shall look solely to the Landlord for
      satisfaction of such claim.

7.    As an inducement to Landlord to enter into this Second Amendment, Tenant
      hereby represents and warrants that: (i) Tenant is not, nor is it owned or
      controlled directly or indirectly by, any person, group, entity or nation
      named on any list issued by the Office of Foreign Assets Control of the
      United States Department of the Treasury ("OFAC") pursuant to Executive
      Order 13224 or any similar list or any law, order, rule or regulation or
      any Executive Order of the President of the United States as a terrorist,
      "Specially Designated National and Blocked Person" or other banned or
      blocked person (any such person, group, entity or nation being hereinafter
      referred to as a "Prohibited Person"); (ii) Tenant is not (nor is it
      owned, controlled, directly or indirectly, by any person, group, entity or
      nation which is) acting directly or indirectly for or on behalf of any
      Prohibited Person; and (iii) from and after the effective date of the
      above-referenced Executive Order, Tenant (and any person, group, or entity
      which Tenant controls, directly or indirectly) has not conducted nor will
      conduct business nor has engaged nor will engage in any transaction or
      dealing with any Prohibited Person in violation of the U.S. Patriot Act or
      any OFAC rule or regulation, including without limitation any assignment
      of the Lease or any subletting of all or any portion of the Premises or
      the making or receiving of any contribution of funds, goods or services to
      or for the benefit of a Prohibited Person in violation of the U.S. Patriot
      Act or any OFAC rule or regulation. In connection with the foregoing, it
      is expressly understood and agreed that (x) any breach by Tenant of the
      foregoing representations and warranties shall be deemed an immediate
      Event of Default by Tenant under Section 13.1(f) of the Lease (without the
      benefit of notice or grace) and shall be covered by the indemnity
      provisions of Section 21 of the Lease, and (y) the representations and
      warranties contained in this subsection shall be continuing in nature and
      shall survive the expiration or earlier termination of the Lease.

8.    Except as otherwise expressly provided herein, all capitalized terms used
      herein without definition shall have the same meanings as are set forth in
      the Lease.

9.    Except as herein amended the Lease shall remain unchanged and in full
      force and effect. All references to the "Lease" shall be deemed to be
      references to the Lease as amended by the First Amendment and as herein
      amended.

                                      -4-

<PAGE>

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

WITNESS:                          LANDLORD:

[ILLEGIBLE]                          BP PROSPECT PLACE LLC

                                     By: Boston Properties Limited
                                         Partnership, its sole member

                                         By: Boston Properties, Inc., its
                                             general partner

                                         By: /s/ David C. Proyost
                                             -------------------------------
                                         Name:  David C. Proyost
                                         Title: Senior Vice President
                                                Boston Properties

                                         TENANT:

                                         OXIGENE, INC.

                                         By: /s/ Frederick Driscoll
                                             -------------------------------
                                         Name:  FREDERICK DRISCOLL
                                         Title: President or Vice President
                                                 (Hereto duly authorized)

                                         By: /s/ James Murphy
                                             -----------------------------------
                                         Name: JAMES MURPHY
                                         Title: Treasurer or Assistant Treasurer

                                      -5-

<PAGE>

                                    EXHIBIT A

                                      [MAP]

<PAGE>

                                    EXHIBIT B

                                 Landlord's Work

I.    Substantial Completion

      (A)   Plans and Construction Process.

            (1)   Landlord's Work. Landlord shall perform the work shown on the
                  plans (the "Plans") listed on Exhibit B-l annexed hereto
                  ("Landlord's Work"); provided, however, that Landlord shall
                  have no responsibility for the installation or connection of
                  Tenant's computer, telephone, other communication equipment,
                  systems or wiring. Any items of work requested by Tenant and
                  not shown on the Plans shall be deemed to be Change
                  Proposal(s) (as defined below) and shall be subject to the
                  terms and provisions of subsection (2) below.

            (2)   Change Orders. Tenant shall have the right, in accordance
                  herewith, to submit for Landlord's approval change proposals
                  with respect to items of work not shown on the Plans (each, a
                  "Change Proposal"). Landlord agrees to respond to any such
                  Change Proposal within such time as is reasonably necessary
                  (taking into consideration the information contained in such
                  Change Proposal) after the submission thereof by Tenant,
                  advising Tenant of any anticipated increase in costs (which
                  costs shall include a construction management fee equal to six
                  percent (6%) of the Change Proposal) ("Change Order Costs")
                  associated with such Change Proposal, as well as an estimate
                  of any delay which would likely result in the completion of
                  the Landlord's Work if a Change Proposal is made pursuant
                  thereto ("Landlord's Change Order Response"), Tenant shall
                  have the right to then approve or withdraw such Change
                  Proposal within five (5) days after receipt of Landlord's
                  Change Order Response. If Tenant fails to respond to
                  Landlord's Change Order Response within such five (5) day
                  period, such Change Proposal shall be deemed withdrawn. If
                  Tenant approves Landlord's Change Order Response, then such
                  Change Proposal shall be deemed a "Change Order" hereunder and
                  if the Change Order is made, then the Change Order Costs
                  associated with the Change Order shall be deemed additions to
                  the Tenant Plan Excess Costs and shall be paid in the same
                  manner as Tenant Plan Excess Costs are paid as set forth in
                  Section IV below.

            (3)   Tenant Response to Requests for Information and Approvals.
                  Except to the extent that another time period is expressly
                  herein set forth, Tenant shall respond to any request from
                  Landlord, Landlord's architect and/or Landlord's contractor
                  for approvals or information in connection with Landlord's
                  Work, within four (4) business days of Tenant's receipt of
                  such request. In addition, Tenant shall, within two (2)
                  business days after

                                      -7-

<PAGE>

                  receipt thereof from Landlord, execute and deliver to Landlord
                  any affidavits and documentation required in order to obtain
                  all permits and approvals necessary for Landlord to commence
                  and complete Landlord's Work on a timely basis ("Permit
                  Documentation").

            (4)   Time of the Essence. Time is of the essence in connection with
                  Tenant's obligations under this Section I.

      (B)   Substantial Completion: Tenant Delay.

            (1)   Landlord's Obligations. Subject to delays due to Tenant Delays
                  (as defined in subsection (C) below) and delays due to
                  Landlord's Force Majeure (as hereinafter defined), Landlord
                  shall use reasonable speed and diligence to have the
                  Landlord's Work substantially completed on or before May 22,
                  2006, but Tenant shall have no claim against Landlord for
                  failure so to complete construction of Landlord's Work in the
                  Additional Premises, except for the right to terminate the
                  Lease solely with respect to the Additional Premises (but not
                  with respect to the Existing Premises), without further
                  liability to either party, in accordance with the provisions
                  hereinafter specified in Section II below. When used herein,
                  "Landlord's Force Majeure" shall mean any prevention, delay or
                  stoppage due to governmental regulation, strikes, lockouts,
                  acts of God, acts of war, terrorists acts, civil commotions,
                  unusual scarcity of or inability to obtain labor or materials,
                  labor difficulties, casualty or other causes reasonably beyond
                  Landlord's control or attributable to Tenant's action or
                  inaction.

            (2)   Definition of Substantial Completion. The Additional Premises
                  shall be treated as having been substantially completed and
                  ready for Tenant's occupancy and the Additional Premises
                  Commencement Date shall be deemed to have occurred on the
                  later of:

                        (a)   The date on which Landlord's Work, together with
                              common facilities for access and services to the
                              Additional Premises, has been completed (or would
                              have been completed except for Tenant Delay)
                              except for items of work and adjustment of
                              equipment and fixtures which can be completed
                              after occupancy has been taken without causing
                              substantial interference with Tenant's use of the
                              Additional Premises (i.e. so-called "punch list"
                              items), or

                        (b)   The date when permission has been obtained from
                              the applicable governmental authority, to the
                              extent required by law, for occupancy by Tenant of
                              the Additional Premises for the Permitted Use,
                              unless the failure to obtain such permission is
                              due to a Tenant Delay.

                                      -8-
<PAGE>

                  In The event of any dispute as to the date on which Landlord's
                  Work has been completed, the reasonable determination of
                  Landlord's architect as to such date shall be deemed
                  conclusive and binding on both Landlord and Tenant.

            (3)   Incomplete Work. Landlord shall complete as soon as conditions
                  practically permit any incomplete items of Landlord's Work,
                  and Tenant shall cooperate with Landlord in providing access
                  as may be required to complete such work in a normal manner.

            (4)   Early Access by Tenant. Landlord shall permit Tenant access
                  for installing Tenant's trade fixtures in portions of the
                  Additional Premises prior to substantial completion when it
                  can be done without material interference with remaining work
                  or with the maintenance of harmonious labor relations. Any
                  such access by Tenant shall be upon all of the terms and
                  conditions of the Lease (other than the payment of Base Rent)
                  and shall be at Tenant's sole risk, and Landlord shall not be
                  responsible for any injury to persons or damage to property
                  resulting from such early access by Tenant.

            (5)   Prohibition on Access by Tenant Prior to Actual Substantial
                  Completion. If, prior to the date that the Additional Premises
                  are in fact actually substantially complete, the Additional
                  Premises are deemed to be substantially complete pursuant to
                  the provisions of this Section I (i.e. and the Additional
                  Premises Commencement Date has therefore occurred), Tenant
                  shall not (except with Landlord's consent) be entitled to take
                  possession of the Additional Premises for the Permitted Use
                  until the Additional Premises are in fact actually
                  substantially complete.

      (C)   Tenant Delay.

            (1)   A "Tenant Delay " shall be defined as the following:

                        (a)   Tenant's failure timely to respond to any request
                              from Landlord, Landlord's architect, Landlord's
                              contractor and/or Landlord's Construction
                              Representative or to timely provide all required
                              Permit Documentation to Landlord within the
                              applicable time periods set forth in this Exhibit
                              B;

                        (b)   Tenant's failure to pay the Tenant Plan Excess
                              Costs in accordance with Section IV below;

                        (c)   Any delay due to items of work for which there is
                              long lead time in obtaining the materials therefor
                              or which are specially or specifically
                              manufactured, produced or milled

                                      -9-

<PAGE>

                              for the work in or to the Additional Premises and
                              require additional time for receipt or
                              installation;

                        (d)   Any delay due to changes, alterations or additions
                              required or made by Tenant with respect to items
                              not shown on the Plans including, without
                              limitation, Change Orders; or

                        (e)   Any other delays caused by Tenant, Tenant's
                              contractors, architects, engineers, or anyone else
                              engaged by Tenant in connection with the
                              preparation of the Additional Premises for
                              Tenant's occupancy, including, without limitation,
                              utility companies and other entities furnishing
                              communications, data processing or other service,
                              equipment, or furniture.

            (2)   Tenant Obligations with Respect to Tenant Delays.

                  (a)   Tenant covenants that no Tenant Delay shall delay
                        commencement of the Term or the obligation to pay Base
                        Rent or Additional Rent, regardless of the reason for
                        such Tenant Delay or whether or not it is within the
                        control of Tenant or any such employee. Landlord's Work
                        shall be deemed substantially completed as of the date
                        when Landlord's Work would have been substantially
                        completed but for any Tenant Delays, as determined by
                        Landlord in the exercise of its good faith business
                        judgment.

                  (b)   Tenant shall reimburse Landlord the amount, if any, by
                        which the cost of Landlord's Work is increased as the
                        result of any Tenant Delay.

                  (c)   Any amounts due from Tenant to Landlord under this
                        Section I(C)(2) shall be due and payable within thirty
                        (30) days of billing therefor, and shall be considered
                        to be Additional Rent. Nothing contained in this Section
                        I(C)(2) shall limit or qualify or prejudice any other
                        covenants, agreements, terms, provisions and conditions
                        contained in the Lease.

II.   Outside Completion Date

      If Landlord shall have failed substantially to complete Landlord's Work in
      the Additional Premises described in the Plans on or before August 15,
      2006 (the "Outside Completion Date") (which date shall be extended
      automatically for such periods of time as Landlord is prevented from
      proceeding with or completing the same by reason of Landlord's Force
      Majeure or any act or failure to act of Tenant which interferes with
      Landlord's construction of the Additional Premises without limiting
      Landlord's other rights on account thereof), Tenant shall have the right
      to terminate the Lease solely with respect to

                                      -10-

<PAGE>

      the Additional Premises (but not with respect to the Existing Premises) by
      giving notice to Landlord of Tenant's desire to do so before such
      completion and within the time period from the Outside Completion Date (as
      so extended) until the date which is thirty (30) days subsequent to the
      Outside Completion Date (as so extended); and, upon the giving of such
      notice, the term of this Lease shall cease and come to an end without
      further liability or obligation on the part of either party unless, within
      thirty (30) days after receipt of such notice, Landlord substantially
      completes Landlord's Work; and such right of termination shall be Tenant's
      sole and exclusive remedy for Landlord's failure so to complete Landlord's
      Work within such time. Each day of Tenant Delay shall be deemed
      conclusively to cause an equivalent day of delay by Landlord in
      substantially completing Landlord's Work pursuant to Section I, and
      thereby automatically extend for each such equivalent day of delay the
      date of the Outside Completion Date.

III.  Performance of Work

      Except to the extent to which Tenant shall have given Landlord notice of
      respects in which Landlord has not performed Landlord's construction
      obligations under this Exhibit B not later than the third (3rd) full
      calendar month next beginning after the Additional Premises Commencement
      Date, Tenant shall be deemed conclusively to have approved Landlord's
      construction and shall have no claim that Landlord has failed to perform
      any of Landlord's obligations under this Exhibit B. Landlord agrees to
      correct or repair at its expense items which are then incomplete or do not
      conform to the work contemplated under the Plans and as to which, in
      either case, Tenant shall have given notice to Landlord, as aforesaid.

IV.   Tenant Plan Excess Costs

      Notwithstanding anything contained in this Exhibit B to the contrary, it
      is understood and agreed that Tenant shall be fully responsible for the
      costs of any items of work not shown on Exhibit B-1 hereto (the "Tenant
      Plan Excess Costs"). To the extent, if any, that there are Tenant Plan
      Excess Costs, Tenant shall pay Landlord, as Additional Rent, fifty percent
      (50%) of the Tenant Plan Excess Costs prior to the commencement of the
      Landlord's Work, with the balance of the Tenant Plan Excess Costs due upon
      substantial completion of the Landlord's Work; provided, however, that in
      the event that the Tenant Plan Excess Costs exceed $10,000,00 (the
      "Maximum Amount"), then Tenant shall pay to Landlord, as Additional Rent,
      at the time that Tenant approves any Change Order that causes the Tenant
      Plan Excess Costs to exceed the Maximum Amount, all Tenant Plan Excess
      Costs in excess of the Maximum Amount.

                                      -11-

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