Document:

Exhibit 10.7

 

LOAN AND SECURITY AGREEMENT

No. V13111

 

This Loan and Security Agreement (this “Loan Agreement”), made as of September 30, 2013 by and between Ares Capital Corporation (“Lender”), with offices at 245 Park Avenue, 44th Floor, New York, NY 10167, and Genocea Biosciences, Inc. (“Borrower”), a Delaware corporation with its principal place of business at 100 Acorn Park Drive, 5th Floor, Cambridge, MA 02140.

 

In consideration of the promises set forth herein, Lender and Borrower agree upon the following terms and conditions:

 

1.                                      General Definitions

 

The following capitalized words, terms and /or phrases shall have the meanings set forth thereafter and such meanings shall be applicable to the singular and plural form thereof giving effect to the numerical difference:

 

A.                                    “Account” means any “account,” as defined in the UCC, now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest and, in any event, shall include all accounts receivable, book debts, rights to payment, and other forms of obligations now owned or hereafter received or acquired by or belonging or owing to Borrower (including under any trade name, style or division thereof), whether or not arising out of goods or software sold or licensed or services rendered by Borrower or from any other transaction (including any such obligation that may be characterized as an account or contract right under the UCC), and all of Borrower’s rights in, to and under all purchase orders or receipts now owned or hereafter acquired by it for goods or services, and all of Borrower’s rights to any goods represented by any of the foregoing (including unpaid seller’s rights of rescission, replevin, reclamation and stoppage in transit and rights to returned, reclaimed or repossessed goods), and all monies due or to become due to Borrower under all purchase orders and contracts for the sale of goods or the performance of services or both by Borrower or in connection with any other transaction (whether or not yet earned by performance on the part of Borrower), now in existence or hereafter occurring, including the right to receive the proceeds of said purchase orders and contracts, and all collateral security and guarantees of any kind given by any Person with respect to any of the foregoing.

 

B.                                    “Account Debtor” means any Person obligated on an Account.

 

C.                                    “Additional Documentation” has the meaning set forth in Section 5.2.

 

D.                                    “Affiliate” means, as applied to any Person, any other Person directly or indirectly controlling, controlled by, or under common control with, that Person.  For the purposes of this definition, “control” (including, with correlative meanings, the terms “controlling”, “controlled by” and “under common control with”), as applied to any Person, means the possession, directly or indirectly, of the power (i) to vote ten percent (10%) or more of the securities having ordinary voting power for the election of directors of such Person or (ii) to direct or cause the direction of the management and policies of that Person, whether through the ownership of voting securities or by contract or otherwise.

 

E.                                     “Borrower’s Liabilities” means all obligations and liabilities of Borrower to Lender (including without limitation all debts, claims, and indebtedness) whether primary, secondary, direct, contingent, fixed or otherwise, heretofore, now and/or from time to time hereafter owing, due or payable, however evidenced, created, incurred, acquired or owing and however arising, whether under this Loan Agreement and/or any promissory note or other instrument issued pursuant hereto or the “Other Agreements” (hereinafter defined), or by oral agreement or operation of law or otherwise, but specifically excluding any obligations and liabilities under the Warrant.

 

F.                                      “Business Day” means any day of the year that is not a Saturday, Sunday or a day on which banks are not required or authorized to close in New York City or Chicago, Illinois.

 

G.                                    “Cash” means all cash, money (as defined in the UCC), currency, and liquid funds, wherever held, in which Borrower now or hereafter acquires any right, title, or interest.

 

H.                                   “Change of Control” means, at any time prior to the closing of a public offering of the equity securities of Borrower, (i) the current shareholders of Borrower cease to beneficially own and control, directly or indirectly on a fully diluted basis, a majority of the economic and voting interests in Borrower’s capital stock or other ownership interests or (ii) any Person or group other than the current shareholders of Borrower shall have the right to elect a majority of the seats on Borrower’s board of directors; in each case, other than as a result of

 

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Borrower’s issuance of capital stock for cash (or conversion of debt) to venture capital firms, private equity, institutional and strategic investors if Borrower provides Lender with the names of such investors at least ten (10) days prior to such issuance.  For the avoidance of doubt, a Change of Control may only occur before, and not at any time on or after, the closing of a public offering of the equity securities of Borrower.

 

I.                                        “Charges” means all national, federal, state, county, city, municipal and/or other governmental taxes, levies, assessments, charges, liens, claims or encumbrances upon and/or relating to the Collateral, Borrower’s Liabilities, Borrower’s business, Borrower’s ownership and/or use of any of its assets, and/or Borrower’s income and/or gross receipts.

 

J.                                        “Chattel Paper” means any “chattel paper,” as defined in the UCC, now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest.

 

K.                                   “Cleanup” means all actions required to: (1) clean up, remove, treat or remediate Hazardous Materials in the indoor or outdoor environment; (2) prevent the release of Hazardous Materials so that they do not migrate, endanger or threaten to endanger public health or welfare or the indoor or outdoor environment; (3) perform pre-remedial studies and investigations and post-remedial monitoring and care; or (4) respond to any government requests for information or documents in any way relating to cleanup, removal, treatment or remediation or potential cleanup, removal, treatment or remediation of Hazardous Materials in the indoor or outdoor environment.

 

L.                                     “Collateral” has the meaning set forth in Section 5.1.

 

M.                                 “Controlled Account” has the meaning set forth in Section 5.4(a).

 

N.                                    “Copyright License” means any written agreement granting any right to use any Copyright or Copyright registration, now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest.

 

O.                                    “Copyrights” means all of the following property, now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest: (i) all copyrights, whether registered or unregistered, held pursuant to the laws of the United States or of any other country; (ii) all registrations, applications and recordings in the United States Copyright Office or in any similar office or agency of the United States or of any other country; (iii) all continuations, renewals or extensions thereof; and (iv) all registrations to be issued under any pending applications.

 

P.                                      “Default” means any condition or event that, after notice or lapse of time or both, would constitute an Event of Default.

 

Q.                                    “Deposit Accounts” means any “deposit accounts,” as defined in the UCC, and in any event includes any checking account, savings account, or certificate of deposit now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest.

 

R.                                    “Documents” means any “documents,” as defined in the UCC, now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest.

 

S.                                      “DOL Regulations” has the meaning set forth in Section 6.1(o).

 

T.                                     “Environmental Claim” means any claim, action, cause of action, investigation or notice (written or oral) by any Person alleging potential liability (including, without limitation, an obligation to conduct a Cleanup or potential liability for investigatory costs, Cleanup costs, governmental response costs, natural resources damages, property damages, personal injuries, or penalties) arising out of, based on or resulting from (a) the presence or release of any Hazardous Materials at any location, whether or not owned, leased or operated by Borrower or any of its Subsidiaries, or (b) circumstances forming the basis of any violation, or alleged violation, of any Environmental Law.

 

U.                                    “Environmental Laws” means all federal, state, local and foreign laws and regulations relating to pollution or protection of human health (but excluding occupational safety and health, to the extent regulated by the Occupational Safety and Hazard Act of 1970) or the environment, including, without limitation, laws relating to releases or threatened releases of Hazardous Materials or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, release, disposal, transport or handling of Hazardous Materials, laws and regulations with regard to recordkeeping, notification, disclosure and reporting requirements respecting Hazardous Materials and laws relating to the management or use of natural resources.

 

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V.                                    “ERISA” has the meaning set forth in Section 6.1(o).

 

W.                                 “Equipment” means any “equipment”, as defined in the UCC, and in any event shall include but not be limited to computers and peripherals, laboratory equipment, manufacturing equipment,  networking equipment, switching and backbone equipment, servers and routers and other hardware, including disk drives and laser printers, office furniture, fixtures, office equipment, test and other equipment, and software, and all accessions, additions, attachments, accessories and improvements thereof and all replacements and/or substitutions therefore.

 

X.                                    “Event of Default” has the meaning set forth in Section 8.1.

 

Y.                                    “Excess Interest” has the meaning set forth in Section 9.9.

 

Z.                                     “Financials” means those financial statements described in Section 7.3.

 

AA.                           “Fixtures” means any “fixtures,” as defined in the UCC, together with all right, title and interest of Borrower in and to all extensions, improvements, betterments, accessions, renewals, substitutes, and replacements of, and all additions and appurtenances to any of the foregoing property, and all conversions of the security constituted thereby, immediately upon any acquisition or release thereof or any such conversion, as the case may be, now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest.

 

BB.                           “Funding Request” has the meaning set forth in Section 2.1.

 

CC.                           “GAAP” means generally accepted accounting principles in the United States, in effect from time to time, consistently applied.

 

DD.                           “General Intangibles” means any “general intangibles,” as defined in the UCC, and, in any event, shall include all right, title and interest which Borrower may now or hereafter have in or under any rights to payment; payment intangibles; software; proprietary or confidential information; business records and materials; customer lists; interests in partnerships, joint ventures, business associations, corporations, and limited liability companies; permits; claims in or under insurance policies (including unearned premiums and retrospective premium adjustments); and rights to receive tax refunds and other payments and rights of indemnification now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest.

 

EE.                             “Goods” means any “goods,” as defined in the UCC, now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest.

 

FF.                               “Hazardous Materials” means all substances defined as Hazardous Substances, Oils, Pollutants or Contaminants in the National Oil and Hazardous Substances Pollution Contingency Plan, 40 C.F.R. § 300.5, or defined as such by, or regulated as such under, any Environmental Law.

 

GG.                           “Indemnified Liabilities” has the meaning set forth in Section 7.5.

 

HH.                         “Indemnified Taxes” has the meaning set forth in Section 2.6.

 

II.                                   “Initial Tranche” has the meaning set forth in Section 2.1.

 

JJ.                                   “Instruments” means any “instrument,” as defined in the UCC, now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest.

 

KK.                         “Intellectual Property” means all Copyrights; Trademarks; Patents; and Licenses; and applications therefor and reissues, extensions, or renewals thereof; and Borrower’s goodwill associated with any of the foregoing; together with Borrower’s rights to sue for past, present and future infringement of Intellectual Property and the goodwill associated therewith.

 

LL.                             “Inventory” means any “inventory,” as defined in the UCC, now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest, and, in any event, shall include all Goods and other personal property that are held by or on behalf of Borrower for sale or lease or are furnished or are to be furnished under a contract of service, or that constitute raw materials, work in process or materials used or consumed or to be used or consumed in Borrower’s business, or the processing, packaging, promotion, delivery or shipping of the same, and all finished goods, whether or not the same is in transit or in the constructive, actual or exclusive possession of Borrower or is held by others for Borrower’s account, including all property covered by purchase orders and contracts with suppliers and all Goods billed and held by suppliers and all such property that may be in the possession or custody of any carriers, forwarding agents, truckers, warehousemen, vendors, selling agents or other Persons.

 

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MM.                     “Investment Property” means all “investment property,” as defined in the UCC, and in any event includes any certificated security, uncertificated security, money market funds, bonds, mutual funds, and U.S. Treasury bills or notes, now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest.

 

NN.                           “Joint Venture” means a corporation, partnership, limited liability company or other entity in which any Person other than the Borrower or any of its Subsidiaries holds, directly or indirectly, an equity interest together with Borrower.

 

OO.                           “Letter of Credit Rights” means any “letter of credit rights,” as defined in the UCC, now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest, including any right to payment or performance under any letter of credit.

 

PP.                               “License” means any Copyright License, Patent License, Trademark License or other license of rights or interests now held or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest and any renewals or extensions thereof.

 

QQ.                           “Loan” has the meaning set forth in Section 2.2.

 

RR.                           “Material Adverse Effect” means a material adverse effect upon (i) the business, operations, properties, assets, results of operations or condition (financial or otherwise) of Borrower after the date hereof, (ii) the prospect of repayment of any portion of Borrower’s Liabilities, when due, (iii) the validity, perfection or priority of Lender’s security interest in the Collateral, (iv) the enforceability of any material provision of this Loan Agreement or any Other Agreement or (v) the ability of Lender to enforce its rights and remedies with respect to Borrower’s Liabilities under this Loan Agreement or any Other Agreement.

 

SS.                               “Material Investor” means any venture capital, private equity, institutional or strategic investor now or hereafter holding or having the ability to control 10% or more of the voting securities of Borrower and their respective affiliates.

 

TT.                             “Material Investor Event” means that any Material Investor shall (i) sell, transfer or otherwise assign the majority of its interest in Borrower to an unaffiliated passive investor, and such Material Investor is not replaced at such time by an existing or new, active Material Investor having comparable experience and assets under management, (ii) fail to participate in a material manner in future financing rounds of Borrower and Borrower is not able to replace this investor with another investor with comparable experience and assets under management, or (iii) have its representative resign from the Board of Directors of Borrower and such Material Investor does not replace the representative director within sixty (60) days, except that a failure of Johnson & Johnson Development Corporation, Lux Ventures II, L.P., Lux Ventures Sidecar, L.P., Lux Ventures II Sidecar II, LLC or Lux Venture II Sidecar III LLC to replace a representative director upon his or her resignation from the Board of Directors shall not constitute a Material Investor Event.

 

UU.                           “Non-U.S. Lender” has the meaning set forth in Section 2.6.

 

VV.                           “Other Agreements” means all agreements, instruments and documents , including, without limitation, the Warrants, any notes, guaranties, letters of credit, mortgages, deeds of trust, pledges, powers of attorney, consents, assignments, contracts, notices, security agreements, leases, warrants, account pledge and control agreements, fee arrangements and financing statements, and all other written matter heretofore, in each case, now and/or from time to time hereafter executed by and/or on behalf and/or for the benefit of Borrower and delivered to Lender in connection with a Loan, as the same may from time to time be amended, modified, supplemented or restated.

 

WW.                     “Patent License” means any written agreement granting any right with respect to any invention on which a Patent is in existence or a Patent application is pending, in which agreement Borrower now holds or hereafter acquires any interest.

 

XX.                           “Patents” means all of the following property, now owned or hereafter acquired by Borrower: (a) all letters patent of, or rights corresponding thereto, in the United States or in any other country, all registrations and recordings thereof, and all applications for letters patent of, or rights corresponding thereto, in the United States or any other country, including registrations, recordings and applications in the United States Patent and Trademark Office or in any similar office or agency of the United States, any State thereof or any other country; (b) all reissues, continuations, continuations-in-part or extensions thereof; (c) all petty patents, divisionals, and patents of addition; and (d) all patents to be issued under any such applications.

 

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YY.                           “Permitted Debt” means (i) Borrower’s indebtedness to Lender under this Loan Agreement or any of the Other Agreements; (ii) indebtedness to trade creditors incurred in the ordinary course of business on ordinary trade terms and accrued expenses incurred in the ordinary course of business; (iii) other indebtedness for equipment financing in an aggregate outstanding principal amount not to exceed $150,000 at any time; (iv) unsecured, subordinated indebtedness of Borrower to new or existing investors or strategic partners, subject to a subordination agreement satisfactory to Lender in its sole reasonable discretion; (v) obligations incurred as a result of endorsing negotiable instruments in the ordinary course of business, (vi) reimbursement obligations of Borrower arising in connection with letters of credit relating to lease obligations, not to exceed $475,000 in the aggregate, or (vii) any extension, renewal, refinancing, modification, amendment or restatement of the indebtedness described in clauses (iii) and (vi) above, provided that the principal amount of, and interest rate on, such indebtedness may not be increased.

 

ZZ.                             “Permitted Joint Venture” means a Joint Venture in which (1) Borrower controls (as the term “control” is determined in the second sentence of the definition of “Affiliate” hereunder) such Joint Venture, and (2) the aggregate liability of the Borrower and/or its Subsidiaries with respect to, and in connection with, any such Joint Venture, at any time outstanding does not exceed $1,000,000, and not to exceed $3,000,000 in the aggregate for all Permitted Joint Ventures.

 

AAA.                  “Permitted Liens” means all (i) Charges for amounts not yet delinquent or being contested in good faith by appropriate proceedings and for which adequate reserves have been made in accordance with GAAP; (ii) statutory liens of landlords, carriers, warehousemen, mechanics and materialmen incurred in the ordinary course of business for sums not yet delinquent or that are being contested in good faith by appropriate proceedings being diligently conducted and for which Borrower maintains adequate reserves in accordance with GAAP; (iii) liens arising from judgments, decrees or attachments in circumstances which do not constitute an Event of Default; (iv) the following deposits, to the extent made in the ordinary course of business: deposits under worker’s compensation, unemployment insurance, social security and other similar laws, or to secure the performance of bids, tenders or contracts (other than for the repayment of borrowed money) or to secure indemnity, performance or other similar bonds for the performance of bids, tenders or contracts (other than for the repayment of borrowed money) or to secure statutory obligations (other than liens arising under ERISA or environmental liens) or surety or appeal bonds, or to secure indemnity, performance or other similar bonds; (v) banker’s liens, rights of setoff and similar liens arising by operation of law on deposits made in the ordinary course of business, provided such liens do not arise in respect of borrowed money; (vi) non-exclusive licenses and sublicenses granted by Borrower or any of its Subsidiaries in the ordinary course of business or exclusive licenses and sublicenses thereof where such exclusivity is with respect to geographic location, fields of use, customized products for specific customers and/or time-based, as approved by Borrower’s Board of Directors; (vii) Liens securing Borrower’s reimbursement obligations under Borrower’s letters of credit described in clause (vi) of definition of Permitted Debt; and (viii) liens arising in connection with indebtedness described in clause (iii) or (vii) of the definition of Permitted Debt on any Equipment (and any accessions, attachments, replacements or improvements thereon) which was acquired or financed by Borrower or any of its Subsidiaries to secure the purchase price of such Equipment, provided that the lien is confined solely to the Equipment so acquired or financed, and improvements thereon and the proceeds thereof.

 

A.                                    “Person” means any individual, sole proprietorship, partnership, limited liability company, joint venture, trust, unincorporated organization, association, corporation, institution, entity, party or government (whether national, federal, state, county, city, municipal or otherwise, including without limitation, any instrumentality, division, agency, body or department thereof).

 

B.                                    “Proceeds” means “proceeds,” as defined in the UCC.

 

C.                                    “Receivables” means (i) all of Borrower’s Accounts, Instruments, Documents, Chattel Paper, Supporting Obligations, letters of credit, proceeds of any letter of credit, and Letter of Credit Rights, and (ii) all customer lists, software, and business records related thereto.

 

D.                                    “Register” has the meaning set forth in Section 9.6.

 

E.                                     “Required Permit” means a permit issued or reasonably required under laws applicable to the business of Borrower or any of its Subsidiaries, affiliates or joint ventures reasonably necessary and material to the business of Borrower.

 

F.                                      “Second Tranche” has the meaning set forth in Section 2.1.

 

G.                                    “Securities Account” means any “securities account”, as defined in the UCC, and in any event includes any account to which a financial asset is or may be credited in accordance with an agreement under which

 

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the Person maintaining the account undertakes to treat the Person for whom the account is maintained as entitled to exercise the rights that comprise the financial asset.

 

H.                                   “Securitization” has the meaning set forth in Section 9.6.

 

I.                                        “Subsidiary” means, with respect to any Person, any corporation, partnership, limited liability company, association, joint venture or other business entity of which more than fifty percent (50%) of the total voting power of shares of stock or other ownership interests entitled (without regard to the occurrence of any contingency) to vote in the election of the Person or Persons (whether directors, managers, trustees or other Persons performing similar functions) having the power to direct or cause the direction of the management and policies thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof.

 

J.                                        “Supporting Obligations” means any “supporting obligations,” as defined in the UCC, now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest.

 

K.                                   “Term Loan” has the meaning set forth in Section 2.1.

 

L.                                     “Terminal Payment” shall mean an amount which is two percent (2%) of the original principal amount of the relevant Loan (or in the case of partial prepayment, the amount of principal so prepaid, in which case the Terminal Payment due at maturity will be reduced by the amount of the Terminal Payment previously paid).

 

M.                                 “Trademark License” means any written agreement granting any right to use any Trademark or Trademark registration, now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest.

 

N.                                    “Trademarks” means all of the following property, now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest: (a) all trademarks, tradenames, corporate names, business names, trade styles, service marks, logos, other source or business identifiers, prints and labels on which any of the foregoing have appeared or appear, and designs of like nature, now existing or hereafter adopted or acquired, all registrations and recordings thereof, and any applications in connection therewith, including registrations, recordings and applications in the United States Patent and Trademark Office or in any similar office or agency of the United States, any state thereof or any other country or any political subdivision thereof, (b) all reissues, extensions or renewals thereof, and (c) all rights in World Wide Web addresses, uniform resource locators and domain names and applications and registrations therefor.

 

O.                                    “UCC” means the Uniform Commercial Code as in effect from time to time in the State of New York, provided that if by reason of mandatory provisions of law, the perfection, the effect of perfection or non-perfection or the priority of the security interest granted hereunder in any Collateral or the availability of any remedy hereunder is governed by the Uniform Commercial Code as in effect in any other jurisdiction(s), then  “UCC” shall mean the Uniform Commercial Code as in effect on or after the date hereof in such other jurisdiction(s) for the purposes of the provisions hereof relating to such perfection, effect of perfection or non-perfection, or priority or availability of such remedy.

 

P.                                      “Warrant” has the meaning set forth in Section 2.5(b).

 

2.                                      The Loans

 

2.1                               Term Loan. On the terms and subject to the conditions contained in this Loan Agreement, including those listed in Section 2.5, Lender shall loan to Borrower, a term loan (the “Term Loan”), in the amount of up to Ten Million Dollars ($10,000,000), the proceeds of which are to be used to repay the LightHouse Capital Partners debt facility in full and for working capital and general operating purposes.  The Term Loan shall be funded in two tranches, as follows: (i) on the date hereof, the initial advance (the “Initial Tranche”) in an amount of Three Million Five Hundred Thousand Dollars ($3,500,000), and (ii) not later than December 31, 2013, an additional advance (the “Second Tranche”) in an amount of up to Six Million Five Hundred Thousand Dollars ($6,500,000), which, in the case of the Second Tranche, will be made pursuant to a funding request submitted to Lender in the form attached hereto as Exhibit B (the “Funding Request”) not later than 9:00 a.m. (prevailing Chicago time) not less than five (5) Business Days prior to the date of such proposed borrowing. In no event shall the aggregate amount of the advances made hereunder exceed Ten Million Dollars ($10,000,000).  This is not a revolving line of credit and Borrower may not repay and re-borrow the amounts advanced or to be advanced under this Section 2.1.  Each tranche shall be repaid in forty-two (42) monthly installments as follows: (i) commencing on the first Business Day of the first month after funding such tranche, nine (9) monthly payments of interest only (paid in arrears), then

 

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(ii) commencing on first Business Day of the tenth month after the date of funding such tranche, thirty-three (33) equal monthly payments of principal, together with interest thereon (paid in arrears), then (iii) on the first Business Day of the forty-second month after the date of funding such tranche, the Terminal Payment. All such payments to be made on the first Business Day of each month commencing on the first Business Day of the month following the date of such borrowing.

 

2.2                               Evidence and Nature of Loans.  Each advance in respect of the Term Loan to be made by Lender to Borrower pursuant to this Loan Agreement (each, a “Loan”) will be evidenced by one or more promissory notes (in form and substance reasonably satisfactory to Lender) to be executed and delivered by Borrower to Lender before or concurrently with Lender’s disbursement of such Loan to or for the account of Borrower.

 

2.3                               Use of Proceeds. Borrower warrants and represents to Lender that Borrower shall use the proceeds of each Loan and any advances made pursuant to the Other Agreements solely for legal and proper corporate purposes (duly authorized by its Board of Directors) and consistent with all applicable laws and statutes.

 

2.4                               Direction to Remit.  Borrower hereby authorizes and directs Lender to disburse, for and on behalf of Borrower and for Borrower’s account, the proceeds of the Loan to such Person or Persons as an officer or director of Borrower shall direct, whether in writing or orally.

 

2.5                               Conditions Precedent.  (a) The following conditions precedent must be met before each Loan is made hereunder: (i) No event, condition or change that has had, or could reasonably be expected to have, a Material Adverse Effect shall exist, (ii) The representations and warranties contained in this Loan Agreement and in the Other Agreements shall be true and correct in all material respects on and as of the date of such Loan (provided, that representations and warranties which speak to another date, shall be true and correct as of such date; provided, further, that, any representation and warranty that is qualified by materiality in the text thereof shall be true and correct (after giving effect to any qualification therein) in all respects on such respective dates), (iii) As of  the date of such Loan, no Default or Event of Default shall exist or would result from the making of such Loan, and (iv) Such additional documents and information as Lender may reasonably request from Borrower from time to time.

 

(b)  In addition, the following conditions precedent must be met before the initial Loan is made hereunder:  (i) Payment of all fees required under this Loan Agreement or the Other Agreements, (ii) Receipt by Lender of satisfactory release documents from all conflicting secured creditors (other than holders of Permitted Liens), (iii) Receipt by Lender of appropriate filings and other means of perfecting its security interest in the Collateral, including, but not limited to, specific assignments of Collateral consisting of instruments or evidenced by titles, (iv) Lender shall have received copies of  the certificates and evidences of insurance contemplated under Section 5.6 and the Financials described in Section 7.3, (v) Receipt by Lender of such proof of free and clear ownership of the Collateral, as may be reasonably requested by Lender, (vi) Reserved, (vii) Delivery by Borrower of a reasonably satisfactory landlord waiver duly executed and delivered by Borrower’s Cambridge, Massachusetts landlord, (viii) Receipt by Lender of a Warrant to purchase 689,655 shares of Borrower’s Series C Preferred Stock at a purchase price of $0.58 per share in form and substance satisfactory to Lender (the “Warrant”), and (ix) Delivery by Borrower of a legal opinion of counsel to Borrower relating to this Loan Agreement and the Other Agreements in form and substance reasonably satisfactory to Lender.

 

(c) The following conditions precedent must be met before the second Tranche is made hereunder: (i) Borrower shall have filed a registration statement of on S-1 for an initial public offering of its stock and is actively pursuing such stock offering thereunder, or (ii) is or making progress (as determined by Lender in its sole discretion) toward the execution of, and funding under, a term sheet from a growth equity fund, inside investors or a pharmaceutical partner, in either case Borrower shall be seeking to raise a net amount not less than $20 million through such equity offering(s) and which transaction(s) would be expected to close and fund on or before April 30, 2014.

 

2.6                               Payments and Taxes.  All payments made by Borrower under this Loan Agreement or any Other Agreement shall be made free and clear of and without deduction for all present or future taxes, levies, imposts, duties, deductions, withholdings, assessments, fees or other charges imposed by any governmental authority (including any interest, additions to tax or penalties applicable thereto) other than any taxes imposed on or measured by Lender’s overall net income and franchise taxes imposed on it (in lieu of net income taxes), by a jurisdiction (or any political subdivision thereof) as a result of Lender being organized or resident, conducting business (other than a business deemed to arise from Lender having executed, delivered or performed its obligations or received a payment under, or enforced, or otherwise with respect to, this Loan Agreement or any Other Agreement) or having its principal office in such jurisdiction (“Indemnified Taxes”).  If any Indemnified Taxes shall be required by law to be withheld or deducted from or in respect of any sum payable under this Loan Agreement or any Other Agreement to Lender (w) an additional amount shall be payable as may be necessary so that, after making all required withholdings or deductions (including withholdings or deductions applicable to additional sums payable under this

 

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Section) Lender receives an amount equal to the sum it would have received had no such withholdings or deductions been made, (x) Borrower shall make such withholdings or deductions, (y) Borrower shall pay the full amount withheld or deducted to the relevant taxing authority or other authority in accordance with applicable law and (z) Borrower shall deliver to Lender evidence of such payment.  If Borrower fails to pay any Indemnified Taxes when due to the appropriate taxing authority or fails to remit to Lender the required evidence of payment, Borrower shall further indemnify Lender for any incremental taxes, interest, costs or penalties that may become payable by Lender as a result of any such failure.  In addition, the Borrower shall pay any and all present or future stamp or documentary taxes or any other excise or property taxes, charges or similar levies arising from any payment made hereunder or from the execution, delivery or enforcement of, or otherwise with respect to, this Agreement to the relevant governmental authority in accordance with applicable law.  Borrower’s obligation hereunder shall survive the termination of this Loan Agreement. Each Lender that is not organized under the laws of the United States of America or any state thereof (a “Non-U.S. Lender”) shall: (i) deliver to Borrower two copies of either (A) in the case of Non-U.S. Lender claiming exemption from U.S. federal withholding tax under Section 871(h) or 881(c) of the Code with respect to payments of “portfolio interest”, United States Internal Revenue Service Form W-8BEN (together with a certificate representing that such Non-U.S. Lender is not a bank for purposes of Section 881(c) of the Code, is not a 10-percent shareholder (within the meaning of Section 871(h)(3)(B) of the Code) of Borrower and is not a controlled foreign corporation related to Borrower (within the meaning of Section 864(d)(4) of the Code)), or (B) Internal Revenue Service Form W-8BEN or Form W-8ECI, in each case properly completed and duly executed by such Non-U.S. Lender claiming complete exemption from, or reduced rate of, U.S. federal withholding tax on payments by Borrower under this Agreement; and (ii) deliver to Borrower two further copies of any such form or certification (or any applicable successor form) promptly upon the obsolescence or invalidity of any form previously delivered by such Non-U.S. Lender.  Notwithstanding any other provision of this paragraph, a Non-U.S. Lender shall not be required to deliver any form pursuant to this paragraph that such Non-U.S. Lender is not legally able to deliver.  Each Lender that is entitled to an exemption from or reduction of non-U.S. withholding tax under the law of the jurisdiction in which Borrower is located, or any treaty to which such jurisdiction is a party, with respect to payments under this Agreement shall deliver to Borrower, at the time or times prescribed by applicable law, such properly completed and executed documentation prescribed by applicable law as will permit such payments to be made without withholding or at a reduced rate; provided, that such Lender is legally entitled to complete, execute and deliver such documentation and in such Lender’s reasonable judgment such completion, execution or submission would not materially prejudice the legal position of such Lender.  Borrower shall make all payments hereunder in recognition of such exemption or reduction in rate based on the documentation set forth above.

 

3.                                      Interest, Fees and Repayment

 

3.1                               Interest.  Each advance in respect of the Loan shall bear interest payable monthly in arrears on the first Business Day of each month, calculated on the basis of a 360 day year and actual days elapsed at a rate equal to 8% per annum.  In no event shall interest accrue or be payable in connection with any Loan in an amount in excess of that permitted under applicable law.  If the note(s) so provide, the interest thereunder may be precomputed for the period ending when payments thereunder are due and on the assumption that all payments will be made on their respective due dates.  Payments due under any note and not made by their scheduled due date for a period in excess of two (2) Business Days thereafter shall be overdue and shall be subject to a service charge in an amount equal to five percent (5%) of the delinquent amount, but not more than the maximum rate permitted by law, whichever is less; provided, that Borrower shall not be obligated to pay such late charge if payments were overdue as a result of any technical or electronic errors in transferring funds from Borrower’s account.  During the continuance of an Event of Default all outstanding Borrower’s Liabilities in respect of the Loans shall bear interest (payable on demand) at a rate that is five percent (5%) per annum in excess of the Loan interest rate applicable to each Loan and other Borrower’s Liabilities from time to time.

 

3.2                               Fees.  Borrower agrees to pay to Lender a fee of $35,000 to cover due diligence and other costs and expenses, including legal expenses, incurred in connection with the Loan, of which Lender acknowledges receipt of $35,000.  All fees payable hereunder shall be fully earned and nonrefundable when due and payable hereunder.

 

3.3                               Repayment.  Borrower’s Liabilities are absolute and unconditional and are not subject to counterclaim, set-off or rights of rescission.  All costs, fees and expenses payable pursuant to this Loan Agreement or any of the Other Agreements shall be payable by Borrower to Lender or to such other Person or Persons designated by Lender, on demand.  All amounts payable to Lender hereunder shall be received by 2:00 p.m. (prevailing New York time) at Lender’s principal place of business specified at the beginning of this Loan Agreement or at such other place or

 

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places as Lender may designate in writing to Borrower. All payments to Persons other than Lender shall be payable at such place or places as Lender designates in writing to Borrower.

 

3.4                               Application of Payments.  Provided that an Event of Default does not exist, the application of payments received by Lender pursuant to this Loan Agreement shall be applied first to all late charges, fees and expenses then due and payable; second to interest then due and payable; third to the principal of the Loan then due and payable, fourth to the remaining principal of the Loan then outstanding together with unpaid interest accrued thereon and finally, to any other Borrower’s Liabilities then outstanding.  During the continuance of an Event of Default, Lender shall have the continuing and exclusive right to apply all such payments received by Lender to any portion of Borrower’s Liabilities, including to any of Borrower’s Liabilities arising under any of the Other Agreements.  Solely for the purpose of computing interest earned by Lender, payments received by Lender shall be applied as aforesaid on the Business Day following receipt by Lender.  Checks or other items of payment received after 2:00 p.m. (prevailing New York time) shall be deemed received the following Business Day.

 

4.                                      Term and Prepayment

 

4.1                               Term.  This Loan Agreement shall be in effect until the indefeasible payment in full to Lender of all Borrower’s Liabilities (other than inchoate indemnity or reimbursement obligations).  Except as provided below, Borrower has no right to prepay Borrower’s Liabilities.

 

4.2                               Voluntary Prepayment.  Borrower may, upon at least five (5) days prior written notice to Lender (stating the proposed date of prepayment, which date shall then be the due date for such Loan (or the portion of such Loan proposed to be repaid)), prepay the outstanding principal amount of the Loan then outstanding in whole, or in part, by paying to Lender, in immediately available funds, an amount equal to the sum of (i) the outstanding principal amount of the Loan (or the amount of the Loan proposed to be repaid), (ii) all accrued and unpaid interest, fees and expenses on the Loan (or the amount of the Loan proposed to be repaid) through the date of prepayment, and (iii) (A) if such prepayment is made on or prior to the last day of the twelfth month of the relevant Loan, a prepayment premium equal to two percent (2%) of the principal amount being prepaid; and (B) if such prepayment is made after the last day of the twelfth month after the date of the relevant Loan but prior to the maturity date of such Loan, a prepayment premium equal to one percent (1%) of the principal amount being prepaid, and (iv) the Terminal Payment relating to the principal amount of the Loan to be prepaid; provided that any partial prepayment shall be in a principal amount of at least $1,000,000.

 

5.                                      Collateral and Security

 

5.1                               Grant of Security Interest.  To further secure to Lender the prompt full and faithful payment and performance of Borrower’s Liabilities and the prompt, full and complete performance by Borrower of each of its covenants and duties under this Loan Agreement and the Other Agreements (other than the Warrant), Borrower grants to Lender, a valid, first priority continuing security interest in and lien upon all of the following (except as to assets or property with Permitted Liens, upon which a lien which may be other than a first priority lien is granted), whether now owned or hereafter acquired and wherever located:

 

(i)                                     All Receivables;

 

(ii)                                  All Equipment;

 

(iii)                               All Fixtures;

 

(iv)                              All General Intangibles (other than Intellectual Property);

 

(v)                                 All Inventory;

 

(vi)                              All Investment Property;

 

(vii)                           All Deposit Accounts and Securities Accounts;

 

(viii)                        All Cash;

 

(ix)                              All Documents;

 

(x)                                 All Proceeds from the sale, transfer or other disposition of Intellectual Property;

 

(xi)                              All other Goods and tangible and intangible personal property of Borrower other than Intellectual Property, whether now or hereafter owned or existing, leased, consigned by or to, or acquired by, Borrower and wherever located, and

 

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(xii)                           to the extent not otherwise included, all Proceeds of each of the foregoing and all accessions to, substitutions and replacements for, and rents, profits and products of each of the foregoing and all attachments, accessories, accessions, replacements, substitutions, additions or improvements to any of the foregoing, wherever located and all products and proceeds of the foregoing including without limitation proceeds of insurance policies insuring the foregoing and all books and records with respect thereto;

 

(all of the foregoing personal property is hereinafter sometimes individually and sometimes collectively referred to as “Collateral”). Notwithstanding anything herein contained or construed to the contrary, Borrower is not granting to Lender, and Lender is not receiving from Borrower, any grant of a security interest in (i) any of the outstanding capital stock or other equity interests of any directly owned Subsidiary of Borrower organized under the laws of any jurisdiction other than the United States, any State thereof or the District of Columbia in excess of sixty-five percent (65%) of the voting power of all classes of such capital stock or other equity interests of such Subsidiary entitled to vote, (ii) any particular asset if the pledge thereof or the security interest therein is prohibited or restricted by applicable law, rule or regulation (including any requirement to obtain the consent of any governmental authority, regulatory authority or third party), (iii) any specifically identified asset in which Lender agrees in writing, and in its sole discretion not to take a security interest or (iv) any of Borrower’s now owned or hereafter acquired Intellectual Property (other than a security interest in the Proceeds from the sale, transfer or other disposition of Intellectual Property); provided, however, that Borrower may continue to enter into the following arrangements, which shall not be considered a sale, transfer or disposition of Intellectual Property: (x) non-exclusive licenses, sub-licenses and similar arrangements with respect to its Intellectual Property in the ordinary course of Borrower’s business and (y) exclusive licenses and sublicenses thereof where such exclusivity is with respect to geographic location, fields of use, customized products for specific customers and/or time-based, as approved by Borrower’s Board of Directors, as long as (i) Borrower does not encumber for the benefit of a party other than Lender any Proceeds of such license or other fees payable to Borrower under any such license or arrangement, and (ii) no such license or arrangement shall prohibit or restrict Borrower (or any successor or assign) from disposing of any Intellectual Property that is the subject of any such license or arrangement.  Borrower shall make appropriate entries upon its financial statements and its books and records disclosing Lender’s security interest in the Collateral.

 

5.2                               Further Assurances.  Borrower shall execute and/or deliver to Lender, at any time and from time to time hereafter at the request of Lender, all agreements, instruments, UCC financing statements (or other required perfection instruments), documents and other written matter (hereinafter individually and/or collectively, referred to as “Additional Documentation”) that Lender reasonably may request, in a form and substance reasonably acceptable to Lender, to perfect and maintain Lender’s security interest in the Collateral and to consummate the transactions contemplated in or by this Loan Agreement and the Other Agreements. In the event that Borrower fails to deliver such Additional Documentation or notify Lender in writing that it objects to such Additional Documentation  as being unreasonable within five (5) Business Days after notice from Lender, Borrower, irrevocably, (a) hereby makes, constitutes and appoints Lender (and all Persons designated by Lender for that purpose) as Borrower’s true and lawful attorney (and agent-in-fact) to sign the name of Borrower on the Additional Documentation and to deliver the Additional Documentation to such Persons as Lender, in its reasonable discretion, may elect, (b) authorizes the filing of any such Additional Documentation by Lender or its agents, whether paper or electronic, (c) hereby ratifies and confirms the filing of Additional Documentation by Lender or its agent, paper or electronic, occurring prior to the date hereof, and (d) declares that Borrower has the present intention to authenticate and process any such Additional Documentation, whether paper or electronic, and whether or not filed by Lender or its agents after the date hereof.

 

5.3                               Inspection of Collateral.  Lender (by any of its officers, employees and/or agents) shall have the right, at any time or times during Borrower’s usual business hours, to inspect the Collateral and all related records (and the premises upon which it is located) and to verify the amount and condition of or any other and all financial records and matters whether or not relating to the Collateral at its own cost and expense; provided, however, that during the continuance of an Event of Default, all costs, fees and expenses incurred by Lender, or for which Lender has become obligated, in connection with such inspection and/or verification shall be payable by Borrower to Lender. Borrower shall use commercially reasonable efforts to cause its employees and agents to cooperate with Lender in all inspections.

 

5.4                               Controlled Accounts; Proceeds of Collateral.  (a) Subject to subsection (b) below, Borrower shall deliver, or cause to be delivered to Lender, an account control agreement in form and substance reasonably satisfactory to Lender and duly authorized, executed and delivered by Borrower and each bank or financial institution where Borrower maintains a deposit or securities account, other than any such account supporting Borrower’s

 

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reimbursement obligations under a letter of credit as provided in clause (vi) of the definition of Permitted Debt (each a “Controlled Account”); provided, however, that Lender will not exercise its right to control amounts in a Controlled Account unless an Event of Default has occurred and is continuing.

 

(b) With respect to any deposit or securities account (other than any such account supporting Borrower’s reimbursement obligations under a letter of credit as provided in clause (vi) of the definition of Permitted Debt) in existence at the closing of the Initial Tranche, Borrower shall deliver an account control agreement in form and substance reasonably satisfactory to Lender and duly authorized, executed and delivered by Borrower and each bank or financial institution no later than October 4, 2013.

 

(c)  All proceeds arising from the disposition of any Collateral by Borrower shall be deposited in a Controlled Account within two (2) Business Days after receipt by Borrower.  Nothing in this Section limits the restrictions on disposition of Collateral set forth elsewhere in this Loan Agreement.

 

5.5                               Third Party Claims. Lender, in its sole discretion, without waiving or releasing any obligation, liability or duty of Borrower under this Loan Agreement or the Other Agreements or any Event of Default, may (but shall be under no obligation to) at any time or times hereafter, pay, acquire and/or accept an assignment of any security interest, lien, encumbrance or claim asserted (other than Permitted Liens) by any Person against the Collateral. All sums paid by Lender in respect thereof and all costs, fees and expenses, including reasonable attorneys’ fees, court costs, expenses and other charges relating thereto incurred by Lender on account thereof, shall be payable by Borrower to Lender upon demand.

 

5.6                               Insurance. Borrower shall maintain at its own expense the following minimum insurance coverages, which shall be provided by insurance carriers with an AM Best rating of A, Class X or as otherwise acceptable to Lender and with such deductibles and exclusions as approved by Lender:  (1)  All risk property damage insurance covering the Collateral which shall include, but not be limited to, fire and extended coverage and where applicable mechanical breakdown and electrical malfunction, and which shall be written in amount not less than the current replacement cost; and, (2) Commercial general liability insurance which may include excess liability insurance written on occurrence basis with a limit of not less than $2,000,000, and (3) workers’ compensation insurance in accordance with statutory limits and employers’ liability coverage which may include excess liability in an amount not less than $500,000.

 

Any insurance carried and maintained in accordance with this Loan Agreement shall be endorsed to provide that:  (i) Lender shall be loss payee with respect to the property insurance described in subsection (1) of the prior paragraph (and such insurance shall provide that the interest of Lender shall not be invalidated by any act or neglect of Lender, Borrower or other Person), and Lender shall be an additional insured with respect to the liability insurance described in subsection (2) of the prior paragraph; and (ii) The insurers thereunder waive all rights of subrogation against Lender, any right of setoff and counterclaim and any other right to deduction due to outstanding premiums, whether by attachment or otherwise; and (iii) Such insurance shall be primary without right of contribution of any other insurance carried by or on behalf of Lender; and (iv) Inasmuch as such policies are written to cover more than one insured, all terms, conditions, insuring agreements and endorsements (other than the limits of liability) shall operate in the same manner as if there were a separate policy covering each insured; and (v) If such insurance is canceled for any reason whatsoever, including nonpayment of premium, or any substantial change is made in the coverage that affects the interests of Lender, such cancellation or change shall not be effective as to Lender until thirty (30) days after receipt by Lender of written notice sent by registered mail from such insurer of such cancellation or change; providing, however, that such thirty (30) day period shall be reduced to ten (10) days in the case where cancellation results from the nonpayment of premiums.  Effective upon the occurrence and during the continuance of an Event of Default, Borrower appoints Lender as Borrower’s true and lawful attorney (and agent-in fact) for the purpose of making, settling and adjusting claims under such policies, endorsing the name of Borrower on any check, draft, instrument or other item of payment for the proceeds of such policies and for making all determinations and decisions with respect to such policies.

 

On or before the initial funding by Lender hereunder, and at each policy anniversary date, Borrower shall arrange to furnish Lender with appropriate Certificates of Insurance.  Such Certificates of Insurance shall be executed by each insurer or by an authorized representative of each insurer, and shall identify insurers, the type of insurance, the insurance limits and the policy term and shall specifically list the special endorsements (i) through (v) above.

 

In case of the failure to procure or maintain such insurance, Lender shall have the right, but not the obligation, to obtain such insurance and any premium paid by Lender shall be immediately due and payable by Borrower to Lender.  The maintenance of any policy or policies of insurance pursuant to this Section shall not limit any obligation or liability of Borrower pursuant to any other Sections or provisions of this Loan Agreement.

 

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5.7                               Charges on Collateral. Borrower shall not permit any Charges (other than Permitted Liens) to arise, or to remain, and Borrower shall pay promptly when due, and discharge, such Charges.  If Borrower, at any time or times hereafter, fails to pay such Charges (other than Permitted Liens) when due or to obtain such discharges, Borrower shall so advise Lender thereof in writing. Lender may, without waiving or releasing any obligation or liability of Borrower hereunder or any Event of Default, in its sole discretion, at any time or times thereafter, make such payment, or any part thereof, or obtain such discharge and take any other action with respect to such Charges (other than Permitted Liens) which Lender deems advisable. All sums so paid by Lender and any expenses, including reasonable attorneys’ fees, court costs, expenses and other charges relating thereto, shall be payable by Borrower to Lender upon demand.

 

5.8                               UCC Filing Authorization.  Borrower hereby authorizes Lender and its counsel and other representatives to file, at any time on or after the date hereof, UCC financing statements and continuation statements, and amendments to financing statements, in any jurisdictions and with any filing offices as Lender may determine, in its sole discretion, are necessary or advisable to perfect the security interests granted to Lender hereunder and under the Other Agreements. Such financing statements may describe the Collateral in the same manner as described herein or therein or may contain an indication or description of Collateral that describes such property in any other manner as Lender may determine is necessary or advisable to ensure the perfection of the security interest in the Collateral.

 

5.9                               Accounts.  So long as no Event of Default has occurred and is continuing, subject to Section 7.4, Borrower may settle, adjust or compromise any claim, offset, counterclaim or dispute with any Account Debtor.  At any time that an Event of Default has occurred and is continuing, Lender may, at its option, notify Borrower in writing that Lender intends to have the exclusive right to settle, adjust or compromise any claim, offset, counterclaim or dispute with Account Debtors or grant any credits, discounts or allowances and on and after such notice from Lender to Borrower, Lender shall have such exclusive right until such Event of Default is cured or waived.

 

6.                                         Warranties and Representations

 

6.1                               Borrower Representations.  Borrower warrants and represents to Lender, as of the date hereof and as of the date of any Loan made hereunder, and agrees and covenants to Lender that:

 

(a)         Borrower is and at all times hereafter shall be (i) a Person having that legal name and organizational structure as set forth above, duly organized and existing and in good standing under the laws of the state of its organization as set forth above and (ii) qualified or licensed to do business in all other states in which the laws require Borrower to be so qualified and/or licensed, except in such states where the failure to be so qualified or licensed would not reasonably be expected to have a Material Adverse Effect;

 

(b)         Borrower is duly authorized and empowered to enter into, execute, deliver and perform this Loan Agreement and the Other Agreements and the execution, delivery and/or performance by Borrower of this Loan Agreement and the Other Agreements, and the use by Borrower of the proceeds of the Loans hereunder, shall not, by the lapse of time, the giving of notice or otherwise, conflict with or constitute a violation of any applicable law (including, without limitation, Regulation U or Regulation X of the Board of Governors of the Federal Reserve System or any other regulation thereof) or a breach of any provision contained in Borrower’s organizational documents or contained in any material agreement, instrument or document to which Borrower is a party or give rise to or result in any default thereunder;

 

(c)          This Loan Agreement is (and when executed or delivered, each Other Agreement will be) the legally valid and binding obligation of Borrower, enforceable against Borrower in accordance with its respective terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting creditors’ rights generally or by equitable principles (whether enforcement is sought in equity or at law);

 

(d)         Except as disclosed to Lender in writing prior to the date hereof, there are no actions or proceedings which are pending, or to its knowledge threatened, against Borrower which could reasonably be expected to have a Material Adverse Effect.  Borrower is not in breach of or a party to any contract or agreement or subject to any charge, restriction, judgment, decree or order which has or could reasonably be expected to have a Material Adverse Effect, nor is Borrower in default with respect to any indenture, security agreement, mortgage, deed or other similar agreement relating to the borrowing of monies to which it is a party or by which it is bound;

 

(e)          Borrower has and is in good standing with respect to all licenses, patents, copyrights, trademarks, trade names, governmental permits, certificates, consents and franchises necessary to continue to conduct its business as previously conducted by it and to own or lease and operate its properties as now owned or leased by it except, in each case, where failure to be in good standing or to obtain such licenses, permits, certificates, consents or franchises could not reasonably be expected to have a Material Adverse Effect;

 

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(f)           The financial statements delivered by Borrower to Lender prior to the date hereof and the Financials delivered by Borrower to Lender pursuant to Section 7.3 fairly and accurately present the assets, liabilities and financial conditions and results of operations of Borrower as of the dates and for the periods stated therein and have been prepared in accordance with GAAP (subject to, in the case of interim financial statements, the absence of footnotes and normal year-end adjustments in connection with the audited financial statements for the periods covered by such interim financial statements), and no event, condition or change that has had, or could reasonably be expected to have, a Material Adverse Effect has occurred since the date of this Loan Agreement;

 

(g)          As to the Accounts and other Collateral, (i) Borrower has and at all times hereafter shall have good, indefeasible and merchantable title to and ownership of the Collateral and the Accounts described and/or listed on any certificate or schedule relating to the Accounts delivered to Lender, free and clear of all liens, claims, security interests and encumbrances except those of Lender and Permitted Liens; (ii) Borrower, promptly on demand by Lender, shall deliver to Lender all evidence of ownership of, including without limitation, vendor invoices and proofs of payment thereof, certificates of title to and applications for title to, any Collateral; (iii) Borrower shall keep and maintain the Collateral in good operating condition and repair, ordinary wear and tear excepted, and shall make all necessary replacements thereof and renewals thereto so that the value and operating efficiency thereof shall at all times be maintained and preserved; and (iv) Borrower shall not permit any such items to become a fixture to real estate or accession to any other Person’s personal property.

 

(h)         As to Lender’s security interest, (i) Lender’s security interest in the Collateral is now and at all times hereafter shall be perfected and have a first priority (subject to Permitted Liens); (ii) the offices and/or locations where Borrower keeps the Collateral and Borrower’s books and records concerning the Collateral are at the locations identified to Lender in writing and Borrower shall not remove such books and records and/or the Collateral therefrom to any other location unless Borrower gives Lender written notice thereof at least thirty (30) days prior thereto and the same is within the contiguous forty-eight (48) states of the United States of America; and (iii) the addresses identified to Lender in writing as Borrower’s chief executive office and principal place(s) of business are Borrower’s sole offices and place(s) of business, and Borrower, by written notice delivered to Lender at least thirty (30) days prior thereto, shall advise Lender of any change thereto.

 

(i)             Borrower is not an “investment company” or a company “controlled” by an “investment company”, as such terms are defined in the Investment Company Act of 1940.

 

(j)            All income and other tax returns and reports required to be filed by Borrower have been timely filed, and all taxes shown on such tax returns to be due and payable and all other assessments, fees and governmental charges upon Borrower and its properties, assets, income, businesses and franchises have been paid when due and payable, except to the extent that such taxes, assessments, charges or claims (i) are being contested in good faith by appropriate proceedings (promptly instituted and diligently conducted) so long as such reserve or other appropriate provision, if any, as shall be required in conformity with GAAP shall have been made therefor and (ii) such proceeding shall stay the attachment, sale, disposition, foreclosure or forfeiture of any asset of Borrower in connection with any such contested tax, assessment, charge or claim.  All necessary and appropriate estimated payments (including any interest and penalties) in respect of assessed tax liability under Borrower’s state and federal tax returns have been made on a timely basis.

 

(k)         As of the date hereof and of each Loan (i) the sum of Borrower’s debt (including contingent liabilities) does not exceed the present fair saleable value of Borrower’s present assets; (ii) Borrower’s capital is not unreasonably small in relation to its business as it exists and as is contemplated at such time; and (iii) Borrower has not incurred and does not intend to incur, or believe that it will incur, debts beyond its ability to pay such debts as they become due.

 

(l)             No information furnished to Lender by or on behalf of Borrower for use in connection with the transactions contemplated hereby, taken as a whole for the relevant period, contains, any untrue statement of a material fact or omits to state a material fact necessary in order to make the statements contained herein or therein not materially misleading in light of the circumstances in which the same were made.  Any projections contained in such materials are based upon good faith estimates and assumptions believed by Borrower to be reasonable at the time made.  There are no facts known to Borrower that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect.

 

(m)     Borrower has provided to Lender on or prior to the date hereof a schedule that correctly identifies the ownership interest (including all options, warrants and other rights to acquire capital stock) of Borrower and each of its Subsidiaries as of the date hereof.

 

(n)         (i) Borrower (A) has been and is in compliance in all material respects with all applicable Environmental Laws;

 

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(B) has not received any communication, whether from a governmental authority or otherwise, alleging that Borrower is not in such compliance, which noncompliance could reasonably be expected to have a Material Adverse Effect, and there are no past or present actions, activities, circumstances conditions, events or incidents that may prevent or interfere with such compliance in the future; (ii) there is no Environmental Claim pending or, to the best knowledge of Borrower, threatened against Borrower or against any Person whose liability for any Environmental Claim Borrower has or may have retained or assumed either contractually or by operation of law and which could reasonably be expected to have a Material Adverse Effect; and (iii) there are no past or present actions, activities, circumstances, conditions, events or incidents, including, without limitation, the release, threatened release or presence of any Hazardous Material, which could reasonably be expected to form the basis of any Environmental Claim against Borrower or, to the best knowledge of Borrower, against any Person whose liability for any Environmental Claim Borrower has or may have retained or assumed either contractually or by operation of law and which could reasonably be expected to have a Material Adverse Effect.

 

(o)         (i) Borrower is an “operating company” within the meaning of the regulations of the United States Department of Labor included within 29 CFR Section 2510.3-101 (the “DOL Regulations”) or is in compliance with such other exception as may be available under such regulations to prevent the assets of Borrower from being treated as the assets of any employee benefit plan for purposes of the DOL Regulations and (ii) neither Borrower nor any Subsidiary of Borrower maintains or is obligated to make contributions to any employee benefit plan that is subject to Title IV of the Employee Retirement Income Security Act of 1974, as amended from time to time, and any successor statute (“ERISA”).

 

7.                                      Affirmative and Negative Covenants

 

7.1                               Affirmative Covenants.  Borrower shall, and shall cause each of its Subsidiaries to: (a) preserve and keep in full force and effect its existence and all rights and franchises, licenses and permits material to its business, (b) pay all income and other taxes and assessments imposed upon it or any of its properties or assets or in respect of any of its income, businesses or franchises before any penalty or fine accrues thereon, except for those that are being contested in good faith and for which adequate reserves are maintained in accordance with GAAP and such proceeding shall stay the attachment, sale, disposition, foreclosure or forfeiture of any asset of Borrower in connection with any such contested tax, assessment, charge or claim, (c) comply in all material respects with the requirements of all applicable laws, rules, regulations and orders of any governmental authority, (d) keep adequate books of record and account, in which complete entries shall be made of all financial transactions and the assets and of its business, (e) on or prior to September 30, 2013 (and promptly after the establishment of any new facilities or co-host locations), deliver to Lender duly executed landlord or collateral access agreements, in form and substance satisfactory to Lender, for all premises (including offices and co-host locations) at which any Collateral is located (other than Borrower’s offices in Cambridge, Massachusetts for which a landlord agreement was delivered to Lender on or prior to the date hereof), (f) promptly take all necessary Cleanup action on, under or affecting any property owned, leased or operated by Borrower in accordance with all applicable laws and the applicable policies, orders and directives of all federal, state and local governmental authorities, and conduct and complete such Cleanup action in material compliance with all applicable Environmental Laws, and (g) if Borrower had not closed an equity financing in an amount of at least $40 million pursuant to its filing of a registration statement on Form S-1 on or prior to March 31, 2014, then, on or before April 30, 2014 (or such later date as may be consented to by Lender (such consent not to be (i) subject to or conditioned upon the payment of any fee or (ii) unreasonably withheld, conditioned or delayed)), Borrower shall have entered into, closed and funded under an executed term sheet for an equity financing from an alternative financing source (inclusive of growth equity funds, inside investors or pharmaceutical partners) for an amount not less than $20 million.

 

7.2                               Negative Covenants  Borrower shall not, and shall not permit any of its Subsidiaries to: (a) grant a security interest in, assign, sell or transfer any of the Collateral or any of its Intellectual Property to any Person or permit, grant, or suffer or permit a lien, claim or encumbrance upon any of the Collateral or Intellectual Property, except for (i) Permitted Liens, (ii) the sale of Inventory and obsolete or unneeded Equipment in the ordinary course of business, or upon Lender’s prior written consent or (iii) non-exclusive licenses or sublicenses of Borrower’s Intellectual Property in the ordinary course of business or exclusive licenses and sublicenses thereof where such exclusivity is with respect to geographic location, fields of use, customized products for specific customers and/or time-based, as approved by Borrower’s Board of Directors, and any such license is otherwise in compliance with Section 5.1 hereof; (b) permit or suffer any Charges to attach to or affect any of the Collateral (other than Permitted Liens); (c) permit or suffer any receiver, trustee or assignee for the benefit of creditors to be appointed to take possession of any of the Collateral; (d) merge or consolidate with or acquire any Person without the prior written consent of Lender; (e) make an equity investment in, or a loan, advance or capital contribution to, any Person, other than travel advances to employees in the ordinary course of business and investments in newly-formed Subsidiaries

 

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with the consent of Lender; (f) incur or permit or suffer to exist any indebtedness for borrowed money or for the deferred purchase price for property or services (other than Permitted Debt); (g) voluntarily prepay any indebtedness prior to its scheduled maturity other than pursuant to the terms hereof; (h) make or pay (i) any dividend or other distribution, direct or indirect, on account of any shares of any class of stock of Borrower or (ii) any redemption, retirement or similar payment, purchase or other acquisition for value, direct or indirect, of any shares of any class of stock of Borrower or any outstanding warrants, options or other rights to acquire such shares; provided, however, that this restriction shall not apply to (x) the repurchase of shares of Borrower’s common stock from employees, directors and other Persons performing services for Borrower pursuant to agreements under which Borrower has the option to repurchase such shares upon the termination of such Person’s services for Borrower, provided that (A) at the time of any such repurchase, and after giving effect thereto, no Event of Default exists and (B) the aggregate cash paid in connection with such repurchases during any year during the term hereof does not exceed $100,000 or (y) any redemption or repurchase of shares of Borrower’s preferred stock or common stock issued upon conversion of such preferred stock from the Bill & Melinda Gates Foundation pursuant to the Letter Agreement between the Borrower and the Bill & Melinda Gates Foundation, dated as of September 28, 2012; (i) enter into any transaction with any Affiliate or any other transaction (including, without limitation, any sale of assets) not in the ordinary course of its business, except for Permitted Joint Ventures; (j) make a change in the nature of its business, such that Borrower ceases to generate a majority of its revenue from the business of development, design, license, co-development and sale of its T-cell vaccines and immunotherapies for a range of infectious diseases, cancers and autoimmune diseases; (k) without thirty (30) days’ prior written notice to Lender, make any change in its legal name or state of formation or organization; (l) adopt or otherwise become obligated to contribute to any employee benefit plan that is subject to Title IV of ERISA; or (m) take any action or fail to take an action if, as a result of such action or inaction, Borrower would fail to qualify as an “operating company” within the meaning of the DOL Regulations or otherwise comply with such other exception as may be available under such regulations to prevent the assets of Borrower from being treated as the assets of any employee benefit plan for purposes of the DOL Regulations.

 

7.3                               Covenants Regarding Financial Statements.  Borrower shall cause to be furnished to Lender, (i) the unqualified, audited fiscal year end financial statements of Borrower (which shall not contain any “going concern” exception (other than such exception if based upon (i) the history of accumulated losses and related impact upon the amount of cash shown on the financial statements of Borrower, (ii) the need to raise additional financing or (iii) the impending maturity (not in excess of 120 days) of the second tranche Loan in 2017) or any exception relating to scope of review) no later than June 30 of the subsequent fiscal year, provided that Borrower shall provide to Lender unaudited annual financial statements no later than 90 days after the fiscal year end, (ii) no later than 30 days after the end of each calendar month, the internally prepared monthly financial statements of Borrower, certified by Borrower’s chief financial officer, each containing consolidated and consolidating profit and loss statements for the month then ended and for Borrower’s fiscal year to date, consolidated and consolidating balance sheets as at the last day of such month and a consolidated statement of cash flows for the month then ended and for Borrower’s fiscal year to date, each of which will be presented in a trending monthly format with fiscal year to date subtotals,  (iii)summary monthly bank statements, no later than 30 days after the related month end, reflecting month-end cash balances, (iv) a monthly Compliance and Disclosure Certificate, substantially in the form of Exhibit A attached hereto, (v) promptly upon Borrower’s Board of Directors approval thereof, copies of Borrower’s annual operating plan and any revisions thereto; (vi) copies of materials provided to Borrower’s Board of Directors in connection with regular and special meetings thereof (excluding any materials subject to attorney-client privilege and attorney work-product); (vii) updated capitalization tables, together with any amendments or restatements of the certificate of incorporation or investor rights agreement of Borrower promptly following each round of equity or convertible debt issuance by Borrower, and (viii) such other financial and business information of Borrower as Lender may reasonably require (excluding any materials subject to attorney-client privilege and attorney work-product), including such other financial and operating performance data as is provided to its outside investors or commercial lenders and, if applicable, required to be provided to shareholders by the Securities and Exchange Commission. Each financial statement to be furnished to Lender must be prepared in accordance with GAAP, except for normal year-end adjustments and the absence of footnotes in unaudited interim financial statements. Borrower also agrees to promptly provide to Lender notice of, and such other data and information (financial and otherwise) at any time and from time to time relating to, any legal actions or proceedings pending, or to its knowledge, threatened against Borrower or the occurrence of any event or change that has, or could reasonably be expected to have, a Material Adverse Effect. Financial statements may be delivered via electronic mail to Lender.

 

7.4                               Further Covenants.  (a)  Borrower may not grant any credit, discount, allowance or extension, or enter into any agreement for any of the foregoing with Account Debtors, except for credits, discounts, allowances or extensions made or given in the ordinary course of Borrower’s business in accordance with Borrower’s historic credit and collection practices and policies without the prior consent of Lender.

 

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(b) Effective upon the occurrence and during the continuance of an Event of Default, Lender shall have the right to verify the validity, amount or any other matter relating to any Accounts, by mail, telephone, facsimile transmission or otherwise.

 

7.5                               Indemnification and Liability. Borrower shall indemnify and hold Lender and Lender’s directors, officers, employees and agents harmless from and against all claims, debts, liabilities, demands, obligations, actions, causes of action, penalties, reasonable and documented out-of-pocket costs and expenses (including reasonable attorneys’ fees), of every nature, character and description (the “Indemnified Liabilities”), which Lender may sustain or incur arising out of the Collateral, any Borrower’s Liabilities, any relationship or agreement between Lender and Borrower, or any other matter, cause or thing whatsoever occurred, done, omitted or suffered to be done by Lender relating to Borrower or Borrower’s Liabilities (except any such Indemnified Liabilities arising from the gross negligence or willful misconduct of Lender). If any third-party suit or proceeding is instituted by or against Lender with respect to any Collateral or relating to Borrower, Borrower shall, without expense to Lender, make available Borrower and its officers, employees and agents and Borrower’s books and records, to the extent that Lender may deem them reasonably necessary in order to prosecute or defend any such suit or proceeding. Borrower’s obligation hereunder shall survive termination of this Loan Agreement.

 

8.                                      Default

 

8.1                               Events of Default.  The occurrence of any one of the following events shall constitute a default (“Event of Default”): (a) if Borrower fails to pay any principal of any Loans when due and payable or fails to pay any other Borrower’s Liabilities within two (2) Business Days after the same are due and payable; (b) if any representation, warranty, financial statement, statement, report or certificate made, deemed made or delivered by Borrower, or any of its officers, employees or agents, to Lender is not true and correct in any material respect when made, deemed made or delivered (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof); (c) if Borrower fails or neglects to perform, keep or observe any term, provision, condition or covenant contained in this Loan Agreement or in the Other Agreements which is required to be performed, kept or observed by Borrower, other than the payment of Borrower’s Liabilities, and, in the case of any covenant contained in Section 7.1, the same is not cured within fifteen (15) days (provided that, notwithstanding the foregoing, the cure period for a breach of Section 7.1(g) shall be five (5) Business Days); (d) if any of the Collateral or any other of Borrower’s other material assets are attached, seized, subjected to a writ or distress warrant, or are levied upon, and such attachment, seizure, writ, warrant or levy is not removed within fifteen (15) days, or come within the possession of any receiver, trustee, custodian or assignee for the benefit of creditors; (e) [Reserved]; (f) if a petition under the Bankruptcy Code or any similar law or regulation shall be filed by or against Borrower and, in the case of any involuntary proceeding, such proceeding shall continue undismissed or unstayed for thirty (30) days, or if Borrower shall make an assignment for the benefit of its creditors or if any case or proceeding is filed by Borrower for its dissolution or liquidation; (g) if Borrower is enjoined, restrained or in any way prevented by court order from conducting all or any material part of its business affairs and such injunction, restraint or other court-ordered impediment to conducting business continues for fifteen (15) days; (h) if an application is made by Borrower or any Person for the appointment of a receiver, trustee or custodian for the Collateral or any other of Borrower’s assets and, in the case of any application made by any Person other than Borrower, such application is not dismissed within fifteen (15) days; (i) if Borrower becomes aware of a notice of lien or Charges (other than with respect to Permitted Liens) being filed of record with respect to any of the Collateral by any Person and such notice of lien or Chargers is not removed within fifteen (15) days of Borrower ascertaining knowledge thereof; (j) if any Change of Control shall occur; (k) if any money judgment, writ or warrant of attachment or similar process for an aggregate of at least $50,000 (if not adequately covered by insurance as to which a solvent and unaffiliated insurance company has acknowledged coverage) shall be entered or filed against Borrower or any of its Subsidiaries or any of their respective assets and such judgment, writ or warrant of attachment or similar process shall remain unsatisfied and unstayed for a period of fifteen (15) days; (l) this Loan Agreement or any Other Agreement shall for any reason fail or cease to be valid and binding on, or enforceable against, Borrower or any other party thereto or Borrower shall so assert; (m) this Loan Agreement or any Other Agreement shall for any reason cease to be in full force and effect or cease to create a valid and enforceable lien and security interest on any Collateral purported to be covered thereby or any such lien and security interest shall fail or cease to be a perfected and first priority lien and security interest (subject to Permitted Liens); (n) if Borrower is in default (i) in the payment of any of Borrower’s debt to Lender under any Other Agreement; or (ii) in the payment of any debt to any Person other than Lender in excess of $100,000 or, in the case of clause (i) or (ii), any other event shall occur or condition shall exist under any agreement or instrument relating to any such debt and such default, condition or event gives the holders of such debt (or any agent or trustee on their behalf) the then current right to accelerate such indebtedness; (o) Borrower changes the nature of its business such that it ceases to generate a

 

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majority of its revenue from the development, design, license, co-development and sale of its T-cell vaccines and immunotherapies for a range of infectious diseases, cancers and autoimmune diseases; (p) any of the Chief Executive Officer, Vice President of Development, Chief Medical Officer, Vice President of Business Development or Vice President of Finance is terminated, resigns or is no longer actively involved in the day to day management of Borrower and Borrower’s Board of Directors fails to designate an interim replacement promptly and fails to appoint a permanent replacement having comparable experience within: (i) ninety (90) days for non-C level employees and (ii) one hundred twenty (120) days  for C-level employees (which periods may be extended by Lender in its reasonable discretion in 30 to 60 day increments, not to exceed an aggregate of 180 days), provided that in no event may two of the positions listed above be vacant at the same time for a period greater than sixty (60) days; (q) prior to the closing of an initial public offering of Borrower’s equity securities, a Material Investor Event occurs, (r) Borrower becomes engaged in litigation or regulatory proceedings which, could reasonably be expected to result in a Material Adverse Effect; (s) any Required Permit shall have been revoked, rescinded, suspended, modified in an adverse manner or not renewed in the ordinary course, provided any such occurrence would reasonably be expected to have a Material Adverse Effect or (t) a Material Adverse Effect upon the Intellectual Property of Borrower or its Subsidiaries (including a material breach, termination or revocation of licenses under which Borrower has licensed Intellectual Property from third parties) occurs. Borrower shall provide written notice of any events or circumstances which would give rise to an Event of Default under this Section 8.1 promptly (but in no event more than two (2) Business Days) after becoming aware of such events or circumstances.  Failure of Borrower to give such notice promptly shall constitute an Event of Default.

 

8.2                               Lender’s Rights and Remedies.  Upon an Event of Default under Section 8.1(f), without notice by Lender to, or demand by Lender of, Borrower, all Borrower’s Liabilities shall be automatically accelerated and shall be due and payable forthwith and any other commitments to provide any financing hereunder shall automatically terminate, and upon any other Event of Default, without notice by Lender, to or demand by Lender of, Borrower, Lender may accelerate all Borrower’s Liabilities and same shall be due and payable forthwith and/or Lender may terminate any other commitments to provide any financing hereunder. Lender may, in its sole discretion: (a) exercise any one or more of the rights and remedies accruing to a lender under the UCC or other applicable law of the relevant state or states or other applicable jurisdiction, and in equity, and under any other instrument or agreement now or in the future entered into between Lender and Borrower, including under this Loan Agreement and the Other Agreements; (b) enter, with or without process of law and without breach of the peace, any premises where the Collateral or the books and records of Borrower related thereto is or may be located, and without charge or liability to Lender therefor seize and remove the Collateral (and copies of Borrower’s books and records relating to the Collateral) from said premises and/or remain upon said premises and use the same (together with said books and records) for the purpose of collecting, preparing and disposing of the Collateral; (c) sell, lease, license or otherwise dispose of the Collateral or any part thereof by one or more contracts at one or more public or private sales for cash or credit, provided, however, that Borrower shall be credited with the net proceeds of such sale(s) only when such proceeds are actually received by Lender; and (d) require Borrower to assemble the Collateral and make it available to Lender at a place or places to be designated by Lender which is reasonably convenient to Lender and Borrower.

 

In addition, at any time an Event of Default exists, Lender may, in its reasonable discretion, enforce Borrower’s rights against any Account Debtor, secondary obligor or other obligor in respect of any of the Accounts.  Without limiting the generality of the foregoing, at any time or times that an Event of Default exists, Lender may, in its reasonable discretion, at such time or times (1) notify Account Debtors, secondary obligors or other obligors in respect thereof that the Accounts have been assigned to Lender and that Lender has a security interest therein and Lender may direct any or all Account Debtors, secondary obligors and other obligors to make payment of Accounts directly to Lender, (2) extend the time of payment of, compromise, settle or adjust for cash, credit, return of merchandise or otherwise, and upon any terms or conditions, all Accounts or other obligations included in the Collateral and thereby discharge or release the Account Debtor or any secondary obligors or other obligors in respect thereof without affecting any Borrower’s Liabilities, (3) demand, collect or enforce payment of any Accounts or such other obligations, but without any duty to do so, and Lender shall not be liable for any failure to collect or enforce the payment thereof and (4) take whatever other action Lender may deem necessary or desirable for the protection of its interests.  At any time that an Event of Default exists, at Lender’s request, all invoices and statements sent to any Account Debtor shall state that the Accounts and such other obligations have been assigned to Lender and are payable directly and only to Lender and Borrower shall deliver to Lender such originals of documents evidencing the sale and delivery of goods or the performance of services giving rise to any Accounts as Lender may reasonably require.

 

All of Lender’s rights and remedies under this Loan Agreement and the Other Agreements are cumulative and non-exclusive. Exercise or partial exercise by Lender of one or more of its rights or remedies shall not be deemed an

 

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election, nor bar Lender from subsequent exercise or partial exercise of any other rights or remedies. Lender agrees to give written notice of any sale to Borrower at least ten (10) days prior to any public sale or at least ten (10) days before the time after which any private sale may be held. Borrower agrees that Lender may purchase any such Collateral (including by way of credit bid), and may postpone or adjourn any such sale from time to time by an announcement at the time and place of sale or by announcement at the time and place of such postponed or adjourned sale, without being required to give a new notice of sale. Borrower agrees that Lender has no obligation to preserve rights against prior parties to the Collateral.

 

8.3                               Power of Attorney.  Borrower grants to Lender an irrevocable power of attorney coupled with an interest (in addition to such other powers of attorney granted to Lender elsewhere in this Loan Agreement), authorizing and permitting Lender at any time during the continuance of an Event of Default, at its option, but without obligation, with or without notice to Borrower, and at Borrower’s expense, to execute on behalf of Borrower any Additional Documentation, or such other instruments or documents as may be reasonably necessary in order to exercise a right of Borrower or Lender, including, but not limited to, the execution of any proof of claim in bankruptcy, any notice of lien, claim of mechanic’s or other lien, or assignment or satisfaction of mechanic’s or other lien, or to take control in any manner of any cash or non-cash proceeds of Collateral and take any action or pay any sum required of Borrower pursuant to this Loan Agreement and any Other Agreement.  In no event shall Lender’s rights under the foregoing power of attorney or any of Lender’s other rights under this Loan Agreement be deemed to indicate that Lender is in control of Borrower’s business, management or properties.

 

9.                                      General Provisions

 

9.1                               Notices. All notices, demands or other communications required or permitted to be given or delivered under or by reason of the provisions hereof shall be in writing and shall be deemed to have been given when (i) delivered personally to the recipient, (ii) sent via facsimile transmission, (iii) the next Business Day after having been sent to the recipient by reputable overnight courier service (charges prepaid) or (iv) four (4) Business Days after having been mailed to the recipient by certified or registered mail, return receipt requested and postage prepaid.  Such notices, demands and other communications shall be sent to the parties hereunder at their respective addresses and transmission numbers indicated on the signature page hereof, or to such other address or to the attention of such other Person as the recipient party has specified by prior written notice to the sending party.

 

9.2                               Severability. If any court of competent jurisdiction holds any provision of this Loan Agreement to be void or unenforceable, such defect shall not affect the remainder of this Loan Agreement, which shall continue in full force and effect.

 

9.3                               Integration; Modification. This Loan Agreement, the Other Agreements and such other written agreements, documents and instruments as may be executed in connection herewith or pursuant hereto are the final, entire and complete agreement between Borrower and Lender and supersede all prior and contemporaneous negotiations and oral representations and agreements, all of which are merged and integrated in this Loan Agreement and the Other Agreements. There are no oral understandings, representations or agreements between the parties which are not set forth in this Loan Agreement or the Other Agreements or in other written instruments, documents or agreements signed by the parties in connection herewith. If any provision contained in this Loan Agreement is in conflict with, or inconsistent with, any provision in the Other Agreements, the provision contained in this Loan Agreement shall govern and control, it being the intent of the parties, however, that the terms of each of the Loan Agreement and the Other Agreements shall remain in full force and effect. This Loan Agreement and the Other Agreements may not be modified, altered or amended except by an agreement in writing signed by Borrower and Lender.

 

9.4                               Time of Essence. Time is of the essence in the performance by Borrower of each and every obligation under this Loan Agreement.

 

9.5                               Attorneys’ Fees and Other Costs. Borrower shall reimburse Lender for all reasonable and documented out-of-pocket costs and expenses, including, but not limited to, reasonable attorneys’ fees and all filing, recording, search, title insurance, appraisal, audit, and other reasonable costs incurred by Lender in connection with any amendment or waiver to this Loan Agreement or any Other Agreement; seeking to enforce any of its rights hereunder against Borrower or the Collateral, including in bankruptcy; enforcing Lender’s security interest in the Collateral, and  representing Lender in all such matters.  Borrower’s obligation hereunder shall survive termination of this Loan Agreement.

 

9.6                               Benefit of Agreement; Assignment.  The provisions of this Loan Agreement shall be binding upon and inure to the benefit of the respective successors, assigns and representatives of Borrower and Lender; provided, however, that Borrower may not assign or transfer any of its rights or obligations under this Loan Agreement

 

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without Lender’s prior written consent, and any prohibited assignment shall be void. Borrower hereby consents to Lender’s sale, assignment, pledge, transfer or other disposition, at any time and from time to time hereafter, of this Loan Agreement, or the Other Agreements, or of any portion thereof, including, without limitation, Lender’s rights, titles, interests, remedies, powers and/or duties.  Borrower hereby acknowledges that Lender and its Affiliates may securitize the Loan (a “Securitization”) through the pledge of the Loan as collateral security for loans to Lender or its Affiliates or through the sale of the Loan or the issuance of direct or indirect interests in the Loan to their controlled Affiliates, which loans to Lender or its Affiliates or direct or indirect interests will be rated by Moody’s, S&P or one or more other rating agencies.  Borrower shall, to the extent commercially reasonable, cooperate with Lender and its Affiliates to effect any and all Securitizations.  Notwithstanding the foregoing, no such Securitization shall release Lender from any of its obligations hereunder or substitute any pledgee, secured party or any other party to such Securitization for Lender as a party hereto. Borrower shall establish and maintain a record of ownership (the “Register”) in which it agrees to register by book entry Lender’s and each initial and subsequent assignee’s interest in each Loan, and in the right to receive any payments hereunder and any assignment of any such interest.  Notwithstanding anything to the contrary contained in this Loan Agreement, the Loans (including the notes in respect of such Loans) are registered obligations and the right, title, and interest of Lender and its assignees in and to such Loans shall be transferable upon notation of such transfer in the Register, pursuant to Borrower’s obligation above.  In no event is any note to be considered a bearer instrument or bearer obligation.  This Section shall be construed so that the Loans are at all times maintained in “registered form” within the meaning of Sections 163(f), 871(h)(2) and 881(c)(2) of the Internal Revenue Code and any related regulations (or any successor provisions of the Code or such regulations).

 

9.7                               Joint and Several Liability. If Borrower consists of more than one Person, their liability shall be joint and several, and the compromise of any claim with, or the release of, any Borrower shall not constitute a compromise with, or a release of, any other Borrower.

 

9.8                               Headings; Interpretation.  Section headings are only used in this Loan Agreement for convenience. The term “including”, whenever used in this Loan Agreement, shall mean “including but not limited to”. This Loan Agreement has been fully reviewed and negotiated between the parties and no uncertainty or ambiguity in any term or provision of this Loan Agreement shall be construed strictly against Lender or Borrower under any rule of construction or otherwise.

 

9.9                               Interest Laws. Notwithstanding any provision to the contrary contained in this Loan Agreement or any Other Agreement, Borrower shall not be required to pay, and Lender shall not be permitted to collect, any amount of interest in excess of the maximum amount of interest permitted by applicable law (“Excess Interest”).  If any Excess Interest is provided for or determined by a court of competent jurisdiction to have been provided for in this Loan Agreement or in any Other Agreement, then in such event:  (1) the provisions of this subsection shall govern and control; (2) Borrower shall not be obligated to pay any Excess Interest; (3) any Excess Interest that Lender may have received hereunder or under any Other Agreement shall be, at such Lender’s option, (a) applied as a credit against the outstanding principal balance of Borrower’s Liabilities or accrued and unpaid interest (not to exceed the maximum amount permitted by law), (b) refunded to the payor thereof, or (c) any combination of the foregoing; (4) the interest rate(s) provided for herein or in any Other Agreement shall be automatically reduced to the maximum lawful rate allowed from time to time under applicable law, and this Loan Agreement and the Other Agreements shall be deemed to have been and shall be, reformed and modified to reflect such reduction; and (5) Borrower shall not have any action against Lender for any damages arising out of the payment or collection of any Excess Interest.

 

9.10                        No Implied Waivers.  Lender’s failure at any time or times to exercise any rights or remedies or to require strict performance by Borrower of any provision of this Loan Agreement shall not waive, affect or diminish any right of Lender thereafter to demand strict compliance and performance therewith and all rights and remedies shall continue in full force and effect until all Borrower’s Liabilities have been fully and indefeasibly paid and performed. Any suspension or waiver by Lender of an Event of Default shall not suspend, waive or affect any other Event of Default, whether the same is prior or subsequent thereto and whether of the same or of a different type. No waiver by Lender of any Event of Default or of any of the undertakings, agreements, warranties, covenants and representations of Borrower contained in this Loan Agreement or the Other Agreements shall be effective unless specifically waived by an instrument in writing signed by an officer of Lender.

 

9.11                        Acceptance by Lender.  This Loan Agreement shall become effective upon acceptance by Lender, in writing, at its principal place of business as set forth above. If so accepted by Lender, this Loan Agreement and the Other Agreements shall be deemed to have been made at said place of business.

 

9.12                        Increased Costs.  If due to any change in law there shall be: (a) any increase in the cost to Lender or its parent of making or maintaining the Loans; (b) any increase in the amount of capital required or maintained, or

 

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expected to be maintained, by Lender or its parent and the amount of such capital is increased by or based upon the existence of the Loans outstanding hereunder; or (c) any decrease in the effective rate of return on the capital of Lender or its parent of making or maintaining the Loans, then within ten (10) days after written demand by Lender, Borrower shall pay to Lender such additional amount or amounts as will compensate Lender or its parent therefor, it being understood and agreed, however, that Lender shall not be entitled to such compensation as a result of Lender’s compliance with, or pursuant to any request or directive to comply with, any such applicable law as in effect on the date hereof.  Upon determining in good faith that any additional amounts will be payable pursuant to this Section, Lender will, as promptly as practicable upon ascertaining knowledge thereof, give written notice thereof to Borrower, which notice shall set forth in reasonable detail the basis of the calculation of such additional amounts, which statement shall be conclusive for all purposes in the absence of manifest error.  The failure to give any such notice, with respect to a particular event, within the time frame specified herein, shall not release or diminish any of Borrower’s obligations to pay additional amounts pursuant to this Section for amounts accrued or incurred after the date of such notice with respect to such event.  If any change in law shall make it unlawful for Lender to continue to maintain the Loans, or for Borrower to comply with its obligations in respect of the Loans, Borrower shall forthwith, upon Lender’s demand, prepay the Loans in full, together with accrued interest thereon and payment of any compensation required pursuant to this Section. Lender shall submit to Borrower a written statement setting forth the basis for determining such amounts, which statement shall be conclusive for all purposes in the absence of manifest error.

 

9.13                        LAW AND VENUE.  THIS LOAN AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS AND DECISIONS OF THE STATE OF NEW YORK. BORROWER CONSENTS AND SUBMITS TO THE JURISDICTION OF ANY LOCAL, STATE OR FEDERAL COURT LOCATED WITHIN THE COUNTY OF COOK, STATE OF ILLINOIS. BORROWER WAIVES ANY RIGHT IT MAY HAVE TO TRANSFER OR CHANGE THE VENUE OF ANY LITIGATION BROUGHT AGAINST BORROWER BY LENDER OR TO ASSERT THAT ANY ACTION INSTITUTED BY LENDER OR BORROWER IN SUCH COURT IS AN IMPROPER VENUE OR SUCH ACTION SHOULD BE TRANSFERRED TO A MORE CONVENIENT FORUM.

 

9.14                        WAIVER OF TRIAL BY JURY. BORROWER AND LENDER EACH WAIVE THE RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED UPON, ARISING OUT OF, OR IN ANY WAY RELATING TO, THIS LOAN AGREEMENT AND THE OTHER AGREEMENTS WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE.

 

9.15                        USA Patriot Act.  Lender hereby notifies Borrower that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)), it is required to obtain, verify and record information that identifies Borrower, which information includes the name and address of Borrower and other information that will allow Lender to identify Borrower in accordance with the Patriot Act.  Borrower agrees to provide all such information to Lender upon request by Lender at any time.

 

9.16                        CONFIDENTIALITY.  (a)  The provisions of this Loan Agreement and the Other Agreements shall be held in strictest confidence by Borrower and shall not be publicized or disclosed in any manner whatsoever; provided, however, that Borrower may disclose this Loan Agreement and the Other Agreements (i) in confidence to its officers, directors, employees, agents, advisors, attorneys, accountants, auditors, insurers, tax preparers, and financial advisors, (ii) insofar as such disclosure may be necessary to enforce its terms, (ii) if Lender consents in writing to any such proposed disclosure, (iii) as may be required by the rules, regulations, schedules and forms of the U.S. Securities and Exchange Commission in connection with any filings made with the U.S. Securities and Exchange Commission, (iv) pursuant to the order of any court or administrative agency in any pending legal or administrative proceeding, or otherwise as required by law, regulation, compulsory legal process or as requested by a governmental authority and (vi) in public disclosures by Borrower.

 

(b)  In handling any confidential information, Lender and all employees and agents of Lender shall exercise the same degree of care that Lender exercises with respect to its own proprietary information of the same types to maintain the confidentiality of any non-public information thereby received or received pursuant to this Loan Agreement except that disclosure of such information may be made (i) to the subsidiaries or Affiliates of Lender in connection with their present or prospective business relations with Borrower, (ii) to prospective transferees or purchasers of any interest in the Loans, provided that they have entered into a comparable confidentiality agreement in favor of Borrower and have delivered a copy to Borrower, (iii) as required by law, regulations, rule or order, subpoena, judicial order or similar order (provided, however, that, to the extent permitted, Lender shall use commercially reasonable efforts to provide Borrower with notice of its intent to disclose any confidential information in accordance with this clause (iii), so as to allow Borrower to obtain a protective order or similar court

 

20

 

protection), (iv) as may be required in connection with the examination, audit or similar investigation of Lender, and (v) as Lender may determine in connection with the enforcement of any remedies hereunder.  Confidential information hereunder shall not include information that either:  (x) is generally available to the public, or was known to Lender when disclosed by Borrower, or becomes generally available to the public after disclosure to Lender through no fault of Lender; (y) is disclosed to Lender by a third party, provided Lender does not have actual knowledge that such third party is prohibited from disclosing such information; or (z) is developed by Lender without reference to the confidential information of Borrower.

 

[Signature Page Follows]

 

21

 

In Witness Whereof, this Loan and Security Agreement has been duly executed as of the day and year first above written.

 

 

	
Borrower:
    	
 
    	
 
    	
 
    	
Accepted By:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Borrower:
    	
 
    	
GENOCEA   BIOSCIENCES, INC.
    	
 
    	
Lender:
    	
 
    	
ARES   CAPITAL CORPORATION
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
/s/   William D. Clark
    	
 
    	
By:
    	
 
    	
/s/   Daniel F. Nguyen
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name: 
    	
 
    	
William   D. Clark
    	
 
    	
Name: 
    	
 
    	
Daniel   F. Nguyen 
    
	
Title:
    	
 
    	
President   and Chief Executive Officer
    	
 
    	
Title:
    	
 
    	
Authorized   Signatory
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address for Notices:
    	
 
    	
100   Acorn Park Drive, 5th Floor
   Cambridge, MA 02140
    	
 
    	
Address for Notices: 
    	
 
    	
One   North Wacker Drive, 48th Floor
   Chicago, IL 60606
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Attention:   Legal Department  
    
	
Telephone: 
    	
 
    	
617.876.8191
    	
 
    	
Telephone 
    	
 
    	
312.252.7500
    
	
Facsimile:
    	
 
    	
617.876.8192
    	
 
    	
Facsimile:
    	
 
    	
312.252.7501
    

 

22

 

EXHIBIT A

 

Officer’s Compliance and Disclosure Certificate

(attachment to monthly financial reports)

 

Reference is hereby made to the Loan and Security Agreement (together with all instruments, documents and agreements entered into in connection therewith, the “Loan Documents”) by and between Ares Capital Corporation (“Lender”) and Genocea Biosciences, Inc. (“Borrower”). Capitalized terms used herein without definition have the meanings assigned to them in the Loan Documents.  The undersigned,                                   , the duly elected and acting                                      of Borrower hereby certifies to Lender in his/her capacity as an officer of Borrower and not in his/her individual capacity, that:

 

(i)                                     FINANCIAL STATEMENTS - General.  The attached financial statements fairly reflect the financial condition of Borrower in all material respects in accordance with GAAP, except for normal year-end adjustments and the absence of footnotes (in the case of unaudited interim financial statements) and as otherwise disclosed on the attached Schedule of Financial Statement Exceptions (if none, so state on said Schedule) and unless otherwise disclosed in writing to Lender, there has been no material adverse change in the assets, liabilities or financial condition of Borrower since                              , 201_;

 

(ii)                                  FINANCIAL STATEMENTS — Off-Balance Sheet.  All material financial obligations and contingent obligations of Borrower not otherwise listed and itemized on the attached financial statements, are disclosed on the attached Schedule of Financial Statement Exceptions, including but not limited to material off-balance sheet leasing obligations, and guarantees of financial obligations of Borrower, its affiliates, subsidiaries, officers and related parties (if none, so state on said Schedule);

 

(iii)                               FINANCIAL STATEMENTS — Related Party Transactions.  All material related party transactions, including but not limited to loans, receivables or payables due to/from Borrower’s officers or employees, affiliates, subsidiaries, or other related parties, are disclosed on the attached Schedule of Financial Statement Exceptions (if none, so state on said Schedule);

 

(iv)                              ACCOUNTS.  All Deposit Accounts and Securities Accounts maintained by Borrower are Controlled Accounts.  There are no Deposit Accounts or Securities Accounts maintained by Borrower for which there is not an account control agreement among Borrower, Lender and the relevant financial institution.

 

(v)                                 COMPLIANCE WITH APPLICABLE LAW.  Except as noted on the attached Schedule of Compliance Issues, there are no material events whereby, Borrower or, to the knowledge of Borrower,  Borrower’s directors, employees, affiliates, subsidiaries or other related parties are acting or conducting business contrary to applicable local, state, or national laws in the country or countries in which said parties are conducting business;

 

(vi)                              REQUIRED PERMITS, WITHDRAWALS, OR ADVERSE TEST RESULTS.  Except as noted on the attached Schedule of Compliance Issues, there are no material events, to the knowledge of Borrower, whereby (A) a governmental regulatory authority has instituted any proceeding to revoke or suspend any Required Permits, or order the withdrawal of any of Borrower’s products or to enjoin Borrower from manufacturing, selling, distributing any of Borrower’s products, (B) Borrower is required to recall, or will voluntarily withdraw, any of Borrower’s products from any market, or (C) any adverse test results have occurred in connection with any of Borrower’s products, which could reasonably be expected to have a Material Adverse Effect;

 

(vii)                           ABSENCE OF DEFAULT.  Except as noted on the attached Schedule of Compliance Issues, no Default or Event of Default exists on the date hereof.  To the knowledge of Borrower, there are no circumstances which could reasonably result in a breach, termination or revocation of licenses under which Borrower has licensed Intellectual Property from third parties.  There has been no amendment, modification or restatement of any licenses under which Borrower has licensed Intellectual Property from third parties, except as has been disclosed to Lender (with copies thereof); and

 

23

 

(viii)                        LITIGATION/REGULATORY MATTERS.  There are no actions, suits or proceedings pending or, to the knowledge of Borrower and the undersigned, threatened against Borrower in any court or before any governmental commission, board or authority which could reasonably be expected to have a Material Adverse Effect (separately or in the aggregate) on the ability of Borrower to perform its obligations under the any of Loan Documents.  Borrower is involved in such litigation and other disputes as are listed on the attached Schedule of Compliance Issues (if none, so state on said Schedule).

 

The undersigned has executed this certificate as of                                               , 201  .

 

	
Signature:
    	
 
    	
 
    
	
 
    	
 
    
	
By   (printed name and title):
    	
 
    	
 
    
				

 

24

 

SCHEDULE OF FINANCIAL STATEMENT EXCEPTIONS

 

	
Category of Disclosure
    	
 
    	
Financial Date
    	
 
    	
Comments (if none, state “none”)
    
	
General   Exceptions:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Off-Balance   Sheet:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Related   Party Transactions:
    	
 
    	
 
    	
 
    	
 
    

 

SCHEDULE OF COMPLIANCE ISSUES

 

	
Parties Involved
    	
 
    	
Date of filing/incident
    	
 
    	
Nature of Dispute or Issue (if none, state “none)”
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Compliance   Issues:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Litigation   Issues:
    	
 
    	
 
    	
 
    	
 
    

 

	
 
    
	
Signatory Initials:
    	
 
    	
 
    
	
 
    

 

25

 

EXHIBIT B

 

FUNDING REQUEST NO.     

FOR

LOAN AND SECURITY AGREEMENT NO. V13111

BY AND BETWEEN

ARES CAPITAL CORPORATION, AS LENDER

AND

GENOCEA BIOSCIENCES, INC., AS BORROWER

 

Borrower hereby requests an advance under the terms of the above described Loan and Security Agreement (the “Loan Agreement”) in the original principal amount of                                    Dollars ($                                ).

 

Borrower hereby acknowledges and agrees that the representations and warranties as set forth in the Loan Agreement are as if fully set forth herein, and further agrees that all Conditions Precedent to the making of an advance by Lender set forth in the Loan Agreement either have been satisfied, waived or will be satisfied as a result of Lender making this advance.  Borrower represents and warrants that there has been no material adverse change in Borrower’s financial condition, internal organization and/or business prospects since the later of the date of the Loan Agreement or the date of the last advance made by Lender thereunder.

 

The advance requested hereby shall be secured by the Collateral, as defined in the Loan Agreement.

 

The undersigned certifies that the undersigned is a duly authorized signatory of Borrower, and that as such the undersigned is authorized to execute this request on behalf of Borrower.

 

 

	
 
    	
Genocea   Biosciences, Inc.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Its:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Date:
    	
 
    

 

26Exhibit 10.8

 

LEASE

 

OF PREMISES AT CAMBRIDGE DISCOVERY PARK

 

CAMBRIDGE, MASSACHUSETTS

 

FROM

 

TBCI, LLC, AS TRUSTEE OF 100 DISCOVERY PARK REALTY TRUST

 

TO

 

GENOCEA BIOSCIENCES, INC.

 

 

TABLE OF CONTENTS

 

	
 
    	
Page
    
	
 
    	
 
    
	
SUMMARY OF BASIC TERMS
    	
1
    
	
 
    	
 
    
	
ARTICLE I
    	
5
    
	
 
    	
 
    
	
ARTICLE II
    	
11
    
	
Section 2.1 Lease Of The   Premises
    	
11
    
	
Section 2.2 Common Rights
    	
12
    
	
Section 2.3 Parking
    	
12
    
	
Section 2.4 Lease Term
    	
13
    
	
Section 2.5 Security Deposit
    	
13
    
	
Section 2.6 Lease Amendment
    	
14
    
	
Section 2.7 Pre-Term   Occupancy
    	
14
    
	
 
    	
 
    
	
ARTICLE III
    	
15
    
	
Section 3.1 Condition of   Premises
    	
15
    
	
Section 3.2 Tenant   Improvements; Allowance
    	
15
    
	
Section 3.3 Signs
    	
15
    
	
 
    	
 
    
	
ARTICLE IV
    	
15
    
	
Section 4.1 Base Rent
    	
15
    
	
Section 4.2 Certain   Additional Rent
    	
16
    
	
Section 4.3 Taxes
    	
16
    
	
Section 4.4 Insurance Costs
    	
17
    
	
Section 4.5 Operating Costs
    	
17
    
	
Section 4.6 Tenant’s Utility   Costs
    	
17
    
	
Section 4.7 Tenant’s Audit   Rights
    	
17
    
	
 
    	
 
    
	
ARTICLE V
    	
18
    
	
Section 5.1 Permitted Use
    	
18
    
	
Section 5.2 Restrictions on   Use
    	
18
    
	
Section 5.3 Hazardous   Materials
    	
19
    
	
Section 5.4 Rooftop   Equipment
    	
20
    
	
 
    	
 
    
	
ARTICLE VI
    	
20
    
	
Section 6.1 Landlord’s   Services
    	
20
    
	
Section 6.2 Extraordinary   Use
    	
21
    
	
Section 6.3 Interruption;   Delay
    	
22
    
	
Section 6.4 Additional   Services
    	
22
    
	
Section 6.5 Landlord’s   Indemnity
    	
22
    
	
 
    	
 
    
	
ARTICLE VII
    	
22
    
	
Section 7.1 Rent
    	
22
    
	
Section 7.2 Utilities
    	
22
    
	
Section 7.3 No Waste
    	
23
    
	
Section 7.4 Maintenance;   Repairs; and Yield-Up
    	
23
    
	
Section 7.5 Alterations by   Tenant
    	
23
    
	
Section 7.6 Trade Fixtures   and Equipment
    	
24
    
	
Section 7.7 Compliance with   Laws
    	
24
    
	
Section 7.8 Contents at   Tenant’s Risk
    	
24
    
	
Section 7.9 Exoneration, Indemnification,   Hold Harmless and Insurance
    	
25
    
	
Section 7.10 Landlord’s   Access
    	
25
    

 

i

 

	
Section 7.11 No Liens
    	
26
    
	
Section 7.12 Compliance with   Rules and Regulations
    	
26
    
	
Section 7.13 Further Construction
    	
26
    
	
 
    	
 
    
	
ARTICLE VIII
    	
27
    
	
Section 8.1 Subletting and   Assignment
    	
27
    
	
 
    	
 
    
	
ARTICLE IX
    	
29
    
	
Section 9.1 Subordination to   Mortgages and Ground Leases
    	
29
    
	
Section 9.2 Lease Superior   at Mortgagee’s or Ground Lessor’s Election
    	
29
    
	
Section 9.3 Notice to   Mortgagee and Ground Lessor
    	
29
    
	
Section 9.4 Limitations on   Obligations of Mortgagees, Ground Lessors and Successors
    	
29
    
	
Section 9.5 Estoppel   Certificate By Tenant
    	
30
    
	
Section 9.6 Amendment of   Declaration
    	
30
    
	
 
    	
 
    
	
ARTICLE X
    	
30
    
	
Section 10.1 Damage From   Casualty
    	
30
    
	
Section 10.2 Abatement of   Rent
    	
31
    
	
Section 10.3 Landlord’s   Right to Terminate
    	
31
    
	
 
    	
 
    
	
ARTICLE XI
    	
32
    
	
Section 11.1 Eminent Domain;   Right to Terminate and Abatement in Rent
    	
32
    
	
Section 11.2 Restoration
    	
32
    
	
Section 11.3 Landlord to   Control Eminent Domain Action
    	
32
    
	
 
    	
 
    
	
ARTICLE XII
    	
33
    
	
Section 12.1 Event of   Default
    	
33
    
	
Section 12.2 Landlord’s   Remedies
    	
33
    
	
Section 12.3 Reimbursement   of Landlord
    	
34
    
	
Section 12.4 Landlord’s   Right to Perform Tenant’s Covenants
    	
34
    
	
Section 12.5 Cumulative   Remedies
    	
35
    
	
Section 12.6 Expenses of   Enforcement
    	
35
    
	
Section 12.7 Landlord’s   Default
    	
35
    
	
Section 12.8 Limitation of   Landlord’s Liability
    	
36
    
	
Section 12.9 Late Payment   and Administrative Expense
    	
36
    
	
 
    	
 
    
	
ARTICLE XIII
    	
36
    
	
Section 13.1 Brokers
    	
36
    
	
Section 13.2 Quiet Enjoyment
    	
36
    
	
Section 13.3 Tenant’s   Request for Landlord’s Action
    	
37
    
	
Section 13.4 Notices
    	
37
    
	
Section 13.5 Waiver of   Subrogation
    	
37
    
	
Section 13.6 Entire   Agreement; Execution; Time of the Essence and Headings and Table of Contents
    	
37
    
	
Section 13.7 Partial   Invalidity
    	
37
    
	
Section 13.8 No Waiver
    	
38
    
	
Section 13.9 Holdover
    	
38
    
	
Section 13.10 When Lease   Becomes Binding
    	
38
    
	
Section 13.11 Recordation
    	
38
    
	
Section 13.12 Financial   Statements; Certain Representations and Warranties of Tenant
    	
38
    
	
Section 13.13   Confidentiality
    	
39
    
	
Section 13.14 Summary of   Basic Terms
    	
39
    

 

ii

 

Exhibits:

 

	
A   –1
    	
 
    	
Property   Description (Project)
    
	
A   – 2
    	
 
    	
Property   Description (Parcel 100)
    
	
B
    	
 
    	
Site   Plan
    
	
C
    	
 
    	
Building   Floor Plan (Fifth Floor)
    
	
C   – 1
    	
 
    	
Building   Floor Plan (First Floor)
    
	
D
    	
 
    	
Rules and   Regulations
    
	
E
    	
 
    	
Form of   Letter of Credit
    
	
F
    	
 
    	
Secretary’s   Certificate
    

 

iii

 

SUMMARY OF BASIC TERMS

 

LEASE

 

OF PREMISES AT CAMBRIDGE DISCOVERY PARK,
 CAMBRIDGE, MASSACHUSETTS

 

TO

 

GENOCEA BIOSCIENCES, INC.

 

DATED AS OF JULY 3, 2012

 

The following is a summary of certain basic terms of this Lease which is intended for the convenience and reference of the parties.  Capitalized terms used, but not defined, in this Summary of Basic Terms, have their defined meanings in this Lease.  In addition, some of the following items or terms are incorporated into this Lease by reference to the item or term or to this ‘Summary of Basic Terms”.

 

1.                                      Landlord:  TBCI, LLC, a Massachusetts limited liability company, as Trustee of 100 Discovery Park Realty Trust, a Massachusetts nominee trust.

 

2.                                      Tenant:  Genocea Biosciences, Inc., a Delaware corporation.

 

3A.                             Premises:  All of the leasable space on the fifth floor of the Building, as depicted on Exhibit C and a storage room on the first floor of the Building, as depicted on Exhibit C-1.  The Building and the Other Buildings which are currently part of the Project are depicted on Exhibit B.

 

3B.                             Building:  The six-floor building identified as Building 100 on Exhibit B.

 

3C.                             Project:  The land described in Exhibit A-1 and depicted on Exhibit B (the “Land”), together with the Building, the Other Buildings and any other improvements now or hereafter thereon, now commonly known as Cambridge Discovery Park, Cambridge, Massachusetts, together with other areas used from time to time for parking for the Buildings.  The fee simple interest in the Land is owned by BHX, LLC, as Trustee of Acorn Park Holdings Realty Trust, a Massachusetts nominee trust (“Ground Lessor”).  Ground Lessor has submitted the entire Project to an Amended and Restated Declaration of Easements, Covenants, Conditions and Restrictions for Cambridge Discovery Park (as the same may be amended from time to time, the “Declaration”) dated December 21, 2009, recorded with the Middlesex South District Registry of Deeds in Book 54081, Page 298 and filed with the Middlesex South Registry District of the Land Court as Document No. 1522053.  Ground Lessor has leased the portion of the Land on which the Building is situated, being more particularly described in Exhibit A-2 (“Parcel 100”), subject to and with the benefit of the Declaration, to Landlord pursuant to a Ground Lease dated March 22, 2005 by Ground Lessor and Landlord, notice of which is recorded with the Middlesex South District Registry of Deeds in Book 44910, Page 119 and filed with the Middlesex South Registry District of the Land Court as Document No. 1349427.

 

3D.                             Leasable Square Footage of the Premises:  (which includes a proportionate share of the Floor Area of the Common Areas of the Building, as provided for in this Lease).  An agreed upon 23,666 square feet.

 

 

3E.                              Leasable Square Footage of the Building:  An agreed upon 128,601 square feet.

 

3F.                               Leasable Square Footage of the Project:  An agreed upon 330,457 square feet, consisting of (i) an agreed upon 128,601 square feet in the Building, and (ii) an agreed upon 201,856 square feet in the Other Buildings.  The Leasable Square Footage of the Project may change from time to time as additional Other Buildings are constructed.

 

4.                                      Allowance:  Landlord shall provide Tenant an allowance for the payment of costs of alterations and improvements to the Premises (the “Allowance”) equal to $10 per square foot multiplied by the Leasable Square Footage of the Premises ($236,660.00).

 

5.                                      Lease Term:  From March 1, 2014 through February 28, 2017.

 

6.                                      Permitted Use:  Subject to applicable Legal Requirements, the Premises may be used for general office, vivarium, and laboratory purposes only and for no other purpose.

 

7.                                      Security Deposit:  $315,546.68, in the form of cash or letter of credit.

 

8.                                      Tenant’s Parking Allocation:  35 parking spaces, which spaces shall be allocated and available to Tenant throughout the Lease Term, provided that Tenant may, by written notice given to Landlord not later than December 31, 2013, reduce Tenant’s Parking Allocation on a one-time basis to not less than 25 parking spaces as specified in such notice.

 

9.                                      Base Rent:  Base Rent shall be as follows:

 

	
PERIOD
    	
 
    	
ANNUAL
   RATE
    	
 
    	
MONTHLY
   RATE
    	
 
    	
PSF
   RATE
    	
 
    
	
March 1, 2014 - August 31, 2014
    	
 
    	
$
    	
740,000.00
    	
 
    	
$
    	
61,666.67
    	
 
    	
$
    	
40.00
    	
 
    
	
September 1, 2014 - February 28, 2015
    	
 
    	
$
    	
946,640.00
    	
 
    	
$
    	
78,886.67
    	
 
    	
$
    	
40.00
    	
 
    
	
March 1, 2015 - February 29, 2016
    	
 
    	
$
    	
982,139.00
    	
 
    	
$
    	
81,844.92
    	
 
    	
541.50
    	
 
    
	
March 1, 2016 - February 28, 2017
    	
 
    	
$
    	
1,017,638.00
    	
 
    	
$
    	
84,803.17
    	
 
    	
$
    	
43.00
    	
 
    

 

NOTE:  The Base Rent for the period March 1, 2014 - August 31, 2014 is based on 18,500 square feet.

 

10A.                      Additional Rent:  (a) Tenant’s Project Share of (i) Project Taxes, (ii) Project Insurance Costs and (iii) Project Operating Costs, (b) Tenant’s Building Share of (i) Building Taxes, (ii) Building Insurance Costs and (iii) Building Operating Costs, (c) Tenant’s Utility Costs (to the extent not paid directly to the utility provider), and/or (d) Other Additional Rent.

 

10B.                      Tenant’s Utility Costs:  Tenant shall be responsible for the payment of the costs of all utility services provided to the Premises and/or the HVAC equipment and systems exclusively serving the Premises (“Tenant’s Utility Costs”), as provided in Section 4.6.

 

10C.                     Other Additional Rent:  Includes all fees, charges (including parking charges), expenses, fines, assessments, interest or other sums payable by Tenant pursuant to this Lease other than (a) Tenant’s Project Share of (i) Project Taxes, (ii) Project Insurance Costs and (iii) Project Operating Costs, (b) Tenant’s Building Share of (i) Building Taxes, (ii) Building Insurance Costs and (iii) Building Operating Costs and (c) Tenant’s Utility Costs due under this Lease.

 

11.                               Utilities:  To be separately metered or submetered to the Premises.

 

2

 

12.                               Brokers:  The Bulfinch Companies, Inc., having an office at First Needham Place, 250 First Avenue, Suite 200, Needham, MA 02494-2805, and Colliers International, having an office at 160 Federal Street, Boston, MA 02110.

 

13A.                      Tenant’s Address For Notices, Telephone Number, Fax Number and Taxpayer Identification No.:

 

Prior to the commencement of Tenant’s sublease with FoldRx:

 

Robert E. Farrell, Jr., CPA
 Genocea Biosciences
 Vice President Finance and Admin.
 161 First St.
 Cambridge, MA 02139
 Telephone:  (617) 876-8191; Fax:  (617) 500-0969

 

After the commencement of Tenant’s sublease with FoldRx:

 

Genocea Biosciences, Inc.
 100 Discovery Park, 5th Floor
 Cambridge, MA 02140
 Attn:  Robert E. Farrell, Jr., CPA
 Telephone:  (617) 876-8191; Fax:  (617) 876-8192

 

Tenant T.I.D.  51-0596811

 

with a copy to

 

Anderson & Kreiger LLP
 One Canal Park, Suite 200
 Cambridge, MA 02141
 Attn:  David L Wiener
 Telephone:  (617) 621-6500; Fax:  (617) 621-6670

 

136.                        Landlord’s Address for Notices:

 

TBCI, LLC, as Trustee of 100 Discovery Park Realty Trust
 c/o The Bulfinch Companies, Inc.
 First Needham Place
 250 First Avenue, Suite 200
 Needham, MA 02494
 Attention: Robert A. Schlager
 Telephone:  (781) 707-4000; Fax:  (781) 707-4001

 

with a copy to

 

TBCI, LLC, as Trustee of 100 Discovery Park Realty Trust
 c/o The Bulfinch Companies, Inc.
 First Needham Place
 250 First Avenue, Suite 200
 Needham, MA 02494

 

3

 

Attention:  Mark R. DiOrio, Esq.
 Telephone:  (781) 707-4000; Fax:  (781) 707-4001

 

and

 

Vorys, Sater, Seymour and Pease LLP
 301 E. Fourth Street, Suite 3500
 Cincinnati, OH 45202
 Attn:  Charles C. Bissinger, Jr., Esq.
 Telephone:  (513) 723-4000; Fax:  (513) 723-4056

 

4

 

LEASE

 

THIS LEASE (this “Lease”), made as of the 3rd day of July, 2012, between TBCI, LLC, a Massachusetts limited liability company, as Trustee of 100 Discovery Park Realty Trust, a Massachusetts nominee trust, and GENOCEA BIOSCIENCES, INC , a Delaware corporation, is as follows:

 

W I T N E S S E T H:

 

ARTICLE I

 

CERTAIN DEFINITIONS

 

In addition to the words and terms defined elsewhere in this Lease, the following words and terms shall have in this Lease the meanings set forth in this Article (whether or not underscored):

 

“Additional Rent” has the meaning set forth in Item 10A of the Summary of Basic Terms.

 

“Allowance” has the meaning set forth in Item 4 of the Summary of Basic Terms.

 

“Bankruptcy Laws” means any existing or future bankruptcy, insolvency, reorganization, dissolution, liquidation or arrangement or readjustment of debt law or any similar existing or future law of any applicable jurisdiction, or any laws amendatory thereof or supplemental thereto, including, without limitation, the United States Bankruptcy Code of 1978, as amended (11 U.S.C. Section 101 et seq.), as any or all of the foregoing may be amended or supplemented from time to time.

 

“Base Rent” has the meaning set forth in Item 9 of the Summary of Basic Terms.

 

“Brokers” has the meaning set forth in Item 12 of the Summary of Basic Terms.

 

“Building” has the meaning set forth in Item 3B of the Summary of Basic Terms.

 

“Building Insurance Costs” means those Insurance Costs which directly relate to, or are primarily for the benefit of, the Building, as reasonably determined by Landlord.

 

“Building Operating Costs” means those Operating Costs which directly relate to, or are primarily for the benefit of, the Building, as reasonably determined by Landlord.

 

“Building Taxes” means those Taxes attributable to the value of the Building, as reasonably determined by Landlord.

 

“Building 200” means the building identified as such on Exhibit B.

 

“Buildings” means, collectively, the Building and the Other Buildings.

 

“Business Day” means Monday through Friday, except holidays.  The term “holiday” means (a) the federal day of celebration of the following holidays: New Year’s Day, President’s Day, Memorial Day, July 4th, Labor Day, Thanksgiving, Christmas and (b) the Friday after Thanksgiving.

 

“Common Areas” means all areas of the Project, as designated by Landlord from time to time, located inside or outside of the Buildings, which are not intended for the use of a single tenant and which are intended (a) for the non-exclusive common use of Landlord, Tenant and other tenants of portions of the Project and their respective Invitees and/or (b) to serve the Project, including but not limited to the 

 

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Common Areas, as defined in the Declaration Common Areas include, without limitation, common lobbies of multi-tenant Buildings, common restroom facilities of multi-tenant Buildings, elevators and stairwells of multi-tenant Buildings, the Food Service Area, if any, sidewalks, the Parking Areas, access drives, landscaped areas, utility rooms, storage rooms and utility lines and systems and the Common Facilities.

 

“Common Facilities” means those facilities, if any, located on the Project which Landlord designates from time to time as “common facilities,” including, but not limited to, building systems, pipes, ducts, wires, conduits, meters, HVAC equipment and systems, electrical systems and equipment, plumbing lines and facilities, and mechanical rooms.

 

“Declaration” has the meaning set forth in Item 3C of the Summary of Basic Terms.

 

“Environmental Law” means the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”), 42 U.S.C. §9601 et seq., the Resource Conservation and Recovery Act, 42 U.S.C. §6901 et seq., the Hazardous Materials Transportation Act, 49 U.S.C. §1802 et seq., the Toxic Substances Control Act, 15 U.S.C §2601 et seq., the Federal Water Pollution Control Act, 33 U.S.C. §1251 et seq., the Clean Water Act, 33 U.S.C. §1321 et seq., the Clean Air Act, 42 U.S.C. §7401 et seq., the Massachusetts Oil and Hazardous Material Release Prevention and Response Act, Chapter 21E of the Massachusetts General Laws, all regulations promulgated thereunder, and any other federal, state, county, municipal, local or other statute, taw, ordinance or regulation (including any state or local board of health rules, regulation, or code), or any common law (including common law that may impose strict liability or liability based on negligence), which may relate to or deal with human health, the environment, natural resources, or Hazardous Materials, all as may be from time to time amended or modified.

 

“Event of Default” any of the events listed in Section 12.1.

 

“Floor Area” means, as of the date of determination, the floor area of the Building, Other Buildings, Common Areas or Premises, as applicable, measured from the outside face of all exterior walls and the center line of all other walls, as determined by Landlord’s Architect in accordance with the Standard Method of Measuring Floor Area in Office Buildings (BOMA Z65.1-1996).

 

“FoldRx” means FoldRx Pharmaceuticals, Inc., a Delaware corporation.

 

“FoldRx Lease” means the lease dated September 18, 2006, as amended, by Landlord and FoldRx for the Premises.

 

“Food Service Area” means any space in any of the Buildings designated by Landlord and/or Other Landlords from time to time as a food service area for the non-exclusive common use of Tenant and other tenants of portions of the Project and their respective Invitees, rather than for the exclusive use of a single tenant or for the exclusive use of tenants of a single Building.

 

“Food Service Costs” means the total costs to Landlord and/or Other Landlords (net of any revenue realized by Landlord from food service operations) of providing food service in the Food Service Area, if any, including but not limited to any subsidy paid to a food service operator, all costs of operating, maintaining and repairing the Food Service Area, all costs of utility services provided to the Food Service Area, and any such costs allocated to Landlord and/or Other Landlords pursuant to the Declaration.

 

“GAAP” means generally accepted accounting principles, consistently applied.

 

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“Genocea Sublease” means the Sublease Agreement dated on or about even date herewith by FoldRx and Tenant, by which FoldRx subleases the Premises to Tenant for a term expiring February 28, 2014.

 

“Ground Lessor” has the meaning set forth in Item 3C of the Summary of Basic Terms.

 

“Hazardous Materials” means, at any time, (a) any “hazardous substance” as defined in §101(14) of CERCLA (42 U.S.C. §9601(14)) or regulations promulgated thereunder; (b) any “solid waste,” “hazardous waste,” or “infectious waste,” as such terms are defined in any Environmental Law at such time; (c) asbestos, urea-formaldehyde, polychlorinated biphenyls (“PCBs”), bio-medical materials or waste, nuclear fuel or material, chemical waste, radioactive material, explosives, known carcinogens, petroleum products and by-products and other dangerous, toxic or hazardous pollutants, contaminants, chemicals, materials or substances which may be hazardous to human or animal health or the environment or which are listed or identified in, or regulated by, any Environmental Law, and (d) any additional substances or materials which at such time are classified or considered to be hazardous or toxic under any Environmental Law.

 

“Insurance Costs” means the costs of insuring the entire Project, including without limitation the Buildings and other improvements now or hereafter situated thereon, and all operations conducted in connection therewith, with such policies, coverages and companies and in such limits as may be selected by Landlord and/or Other Landlords (and/or which may be required by their lenders), including, but not limited to, fire insurance with extended or with all-risk coverage, comprehensive public liability insurance covering personal injury, deaths and property damage with a personal injury endorsement covering false arrest, detention or imprisonment, malicious prosecution, libel and slander, and wrongful entry or eviction, rent loss or business interruption insurance, worker’s compensation insurance, plate glass insurance, contractual liability insurance, boiler insurance, and fidelity bonds.

 

“Invitees” means employees, workers, visitors, guests, customers, suppliers, agents, contractors, representatives, licensees and other invitees.

 

“Land” means the land described in Exhibit A-1 and depicted on Exhibit B.

 

“Landlord” means TBCI, LLC, a Massachusetts limited liability company, as Trustee of 100 Discovery Park Realty Trust, a Massachusetts nominee trust.

 

“Landlord’s Architect” means ADD, Inc. or any other architect or architectural firm(s) designated by Landlord.

 

“Leasable Square Footage” means, (a) when used with respect to the Premises, the sum of (i) the Floor Area of the Premises, plus (ii) Tenant’s Building Share of the Floor Area of the Common Areas of the Building, and (b) when used with respect any of the Buildings, the Floor Area of such of the Buildings.

 

“Lease Term” means the period beginning at 12:01 A.M. on March 1, 2014 and ending at 11:59 P.M. on February 28, 2017.

 

“Legal Requirements” means all applicable laws, statutes, rules, regulations and requirements of governmental authorities, including, but not limited to, zoning taws and building codes.

 

“Operating Costs” means all reasonable costs, expenses and disbursements of every kind and nature (except Taxes and Insurance Costs) which Landlord and/or Other Landlords shall pay or become

 

7

 

obligated to pay in connection with operating, managing, maintaining, repairing or replacing the Project or elements thereof, all as reasonably determined by Landlord, including such costs, expenses and disbursements as are allocated to Landlord and/or Other Landlords pursuant to the Declaration.  Operating Costs shall include, by way of illustration, but not be limited to: all charges payable by Landlord and/or Other Landlords in connection with the maintenance and repair of the Project, all charges payable by Landlord and/or Other Landlords to provide janitorial service to the Project; all charges payable by Landlord and/or Other Landlords in connection with the maintenance, repair and replacement of HVAC equipment and systems; all charges payable by Landlord and/or Other Landlords to provide utility services to the Project, except to the extent excluded pursuant to clauses (f) or (g) below, all costs related to the operation of any shuttle or other transportation service between the Project and public transportation stations; all costs incurred in connection with traffic mitigation and/or compliance with the PTDM Plan for the Project and any other transportation demand management plans and/or applicable Legal Requirements in connection with traffic mitigation and/or transportation demand management; all costs related to any police details at any entrances to the Project, all costs related to removal of trash, debris, and refuse, all costs related to removal of snow and ice; all costs of pest and vermin control, all costs of providing, maintaining, repairing and replacing of paving, curbs, walkways, landscaping, planters, roofs, walls, drainage, utility lines, security systems and other equipment; all costs of painting the exterior and Common Areas of the Building; all costs of repaving, resurfacing, and restriping Parking Areas and drives; all costs of lighting, cleaning, waterproofing, repairing and maintaining Common Areas, Common Facilities and other portions of the Project; all surcharges, costs and expenses that may result from any Environmental Laws or other laws, rules, regulations, guidelines or orders, except to the extent excluded pursuant to clause (k) below; all costs of licenses, permits and inspection fees, except to the extent directly attributable to the space of a particular tenant or arising in connection with new improvements or alterations; all legal, accounting, inspection and consulting fees, except to the extent excluded pursuant to clauses (e), (m) or (w) below; except to the extent excluded below, all costs of capital repairs or replacements (but not improvements) hereafter made to the Building or Common Areas, amortized over their expected useful life and based upon and including a market rate of interest, the foregoing being in accordance with GAAP; all costs of wages, salaries and benefits of operating personnel engaged in managing and operating the Project, to the extent reasonably allocable to the Project, including welfare, retirement, vacations and other compensation and fringe benefits and payroll taxes; the Food Service Costs; all costs for communications devices and/or services used in managing and operating the Project, to the extent reasonably allocable to the Project; the amount of any insurance deductible paid by Landlord and/or Other Landlords in connection with an insured loss; and management fees equal to five percent (5%) of gross rents (which management fees may be payable to an affiliate of Landlord).  However, notwithstanding the above, the following specific items shall not be included:  (a) the cost of alterations to space in the Buildings leased to others; (b) debt service and ground rent payments; (c) any cost or expenditure for which Landlord and/or Other Landlords are reimbursed by insurance proceeds or eminent domain proceeds; (d) costs for which Landlord and/or Other Landlords are reimbursed under warranties provided by contractors, vendors or manufacturers who have warranty obligations; (e) leasing commissions, attorneys’ fees and collection costs related to negotiation and enforcement of tenant leases; (f) the cost of providing gas and electrical service to space leased to tenants; (g) expenses which are billed directly, or reasonably allocable to any tenant of the Building or Project; (h) salaries and bonuses of officers and executives of Landlord and/or Other Landlords and administrative employees above the revel of property manager or building supervisor and Landlord’s or Other Landlords’ general overhead; (i) the cost of any work or service performed on an extra-cost basis for any tenant of the Building or Project; (j) any cost, other than the management fee provided for above, otherwise included in Operating Costs representing an amount paid to a person or entity affiliated with Landlord and/or Other Landlords which is in excess of the amount which would have been paid on an arms-length basis in the absence of such relationship; (k) any costs necessary to cure any violation of any Legal Requirement existing as of the date of this Lease, including any violation of Environmental Laws; (l) depreciation, other than the amortization of capital repairs or replacements hereafter made as provided

 

8

 

above; (m) costs of selling, syndicating, financing, mortgaging or hypothecating any of Landlord’s and/or Other Landlords’ interest in the Project; (n) all income or corporate excise taxes assessed against Landlord and/or Other Landlords; (o) costs of developing and constructing any new building at the Project or any addition to or expansion of any of the Buildings; (p) costs of renovating any Building (but not ordinary maintenance, repairs and replacements of elements of the Buildings); (q) costs of capital improvements, except to the extent required by a Legal Requirement becoming effective after the date of this Lease or made to effect future savings in Operating Costs (but, in such event, only to the extent of the savings); (r) costs arising from Landlord’s and/or Other Landlords’ negligence or willful misconduct; (s) marketing costs incurred in connection with the marketing of the Project; (t) rental concessions granted to specific tenants and expenses incurred in renovating or otherwise improving or decorating, painting or redecorating space for specific tenants; (u) attorneys’ fees, costs and disbursements and other expenses incurred in connection with negotiating or enforcing any ground lease related to all or any portion of the Project or in connection with any default by Landlord or Other Landlord under any such ground lease or the Declaration; (v) costs related to maintaining Landlord’s or Other Landlord’s existence as a corporation, partnership or other entity or related to internal entity accounting or internal legal matters; (w) costs incurred due to a violation of applicable laws by Landlord relating to the Property or violations by Landlord or Other Landlords of the terms and conditions of any lease in the Building or in the Project; (x) overtime HVAC costs or excess electricity costs that are separately charged to other tenants and occupants in the Project, including without limitation Tenant; (y) the cost of overtime or other expenses to Landlord or Other Landlords in curing their defaults; (z) any bad debt loss, rent loss, or reserves for bad debts or rent loss; (aa) attorneys’ fees and other costs and expenses awarded to any tenant pursuant to any lease, or incurred as a result of Landlord’s or Other Landlord’s failure to maintain any insurance required under any lease; (bb) reserves with respect to any anticipated Operating Costs; (cc) costs of acquisition and/or installation of sculpture, paintings or other objects of art; (dd) except to the extent the same pertain to the operation, repair, maintenance and management of the Building or the Project, Landlord’s or Other Landlord’s general overhead expenses; and (dd) that portion, if any, of rent associated with management office space that is allocable to management of buildings other than the Building.

 

“Operator” has the definition set forth in Section 2.3(b).

 

“Other Additional Rent” has the meaning set forth in Item 10C of the Summary of Basic Terms.

 

“Other Buildings” means the buildings other than the Building located in the Project from time to time, including Building 200, Parking Garage A and any building hereafter developed and constructed in the Project.  A building hereafter developed and constructed in the Project will be included in the Other Buildings from and after such time as a certificate of occupancy is issued for such building.

 

“Other Landlords” means, collectively, (a) 200 Discovery Park, LLC, a Massachusetts limited liability company, its successors and assigns, as the owner of Building 200, (b) Parking Garage A Owner, (c) BHX, LLC, as Trustee of Acorn Park I Realty Trust, its successors and assigns, as the owner of the leasehold interest under the Ground Lease from Ground Lessor dated November 17, 2000, notice of which is recorded with the Middlesex South District Registry of Deeds in Book 32042, Page 546 and filed with the Middlesex South Registry District of the Land Court as Document No. 1155608, as amended, and (d) each “Additional Party” (as defined in the Declaration).

 

“Parking Areas” means those portions of the Project which may be used for parking as depicted on the Site Plan, as such areas may be changed by Landlord and/or Other Landlords from time to time.  The Parking Areas include Parking Garage A.

 

“Parking Garage A” means the building identified as such on Exhibit B.

 

9

 

“Parking Garage A Owner” means Parking Garage A, LLC, a Massachusetts limited liability company, its successors and assigns, as the owner of Parking Garage A.

 

“Permitted Transferee” means (a) an entity controlling, controlled by or under common control with Tenant, (b) an entity which succeeds to Tenant’s business by merger, consolidation or other form of corporate reorganization, (c) an entity which acquires all or substantially all of Tenant’s assets or stock, or (d) an entity which acquires an equity interest in Tenant, controlling or otherwise, provided that the day-to-day operating management and control of such entity is unchanged from that of Tenant immediately prior to such acquisition.  Notwithstanding the foregoing, an entity may not become a Permitted Transferee through or as a part of a bankruptcy or other similar insolvency proceeding.

 

“Permitted Use” has the meaning set forth in Item 6 of the Summary of Basic Terms.

 

“Person” means any individual, partnership, joint venture, trust, limited liability company, business trust, joint stock company, unincorporated association, corporation, institution, or entity, including any governmental authority.

 

“Premises” has the meaning set forth in Item 3A of the Summary of Basic Terms.

 

“Project” has the meaning set forth in Item 3C of the Summary of Basic Terms.

 

“Protect Insurance Costs” means all Insurance Costs other than (a) Building Insurance Costs and (b) Insurance Costs which relate solely to, or are primarily for the benefit of, any of the Other Buildings, as reasonably determined by Landlord.

 

“Protect Operating Costs” means all Operating Costs other than (a) Building Operating Costs and (b) Operating Costs which relate solely to, or are primarily for the benefit of, any of the Other Buildings, as reasonably determined by Landlord.

 

“Project Taxes” means those Taxes attributable to the value of the Land.

 

“Rooftop Equipment” means supplemental HVAC equipment and telecommunications equipment and related appurtenances and cabling used in connection with Tenants business at the Premises.

 

“Rules and Regulations” means the rules and regulations promulgated by Landlord and Other Landlords with respect to the Project, a copy of which is Exhibit D hereto, as the same may be modified by Landlord and Other Landlords from time to time upon notice to Tenant.

 

“Security Deposit” has the meaning set forth in Item 7 of the Summary of Basic Terms.

 

“Site Plan” means the site plan attached hereto as Exhibit B which depicts the approximate size and layout of the Land, the Building, Building 200 and Parking Garage A.

 

“Summary of Basic Terms” means the Summary of Basic Terms which is affixed to this Lease immediately after the table of contents of this Lease.

 

“Tax Fiscal Year” means July 1 through June 30 next following, or such other tax period as may be established by law for the payment of Taxes.

 

“Taxes” means (a) all taxes, assessments, betterments, water or sewer entrance fees and charges including general, special, ordinary and extraordinary, or any other charges (including charges for the use

 

10

 

of municipal services if billed separately from other taxes), levied, assessed or imposed at any time by any governmental authority upon or against the Land, the Buildings, or the fixtures, signs and other improvements thereon then comprising the Project and (b) all attorneys’ fees, appraisal fees and other fees, charges, costs and/or expenses incurred in connection with any proceedings related to the amount of the Taxes, the tax classification and/or the assessed value of the Project.  This definition of Taxes is based upon the present system of real estate taxation in the Commonwealth of Massachusetts; if taxes upon rentals or any other basis shall be substituted, in whole or in part, for the present ad valorem real estate taxes, the term “Taxes” shall be deemed changed to the extent to which there is such a substitution for the present ad valorem real estate taxes, as if the Building were Landlord’s sole asset.  For purposes of this definition of Taxes, if assessments may be paid in installments, only the current installments of such assessments shall be included in Taxes.  Taxes shall not include franchise, estate, inheritance, succession, capital levy, transfer, income, corporate, gift or excess profits taxes assessed on Landlord or the Project.

 

“Tenant” means Genocea Biosciences, Inc., a Delaware corporation, its permitted successors and permitted assigns.

 

“Tenant Improvements” has the meaning set forth in Section 3.2.

 

“Tenant’s Building Share” means the amount (expressed as a percentage) equal to (a) the Leasable Square Footage of the Premises divided by (b) the Leasable Square Footage of the Building.  The percentage determined by the preceding sentence shall be rounded upward to the nearest one-tenth of one percent (0.1%).  Initially, Tenant’s Building Share shall be 18.4% (23,666/128,601).  Tenant’s Building Share shall be recalculated at any time at which the Leasable Square Footage of either the Premises or the Building is changed: provided that there shall be no recalculation unless there is a physical expansion or contraction in the Premises or the Building.

 

“Tenant’s Parking Charges” has the definition set forth in Section 2.3(b).

 

“Tenant’s Project Share” means the amount (expressed as a percentage) equal to (a) the Leasable Square Footage of the Premises divided by (b) the Leasable Square Footage of the Buildings; provided, however, that for purposes of determining Tenant’s Project Share of the Food Service Costs, Tenants Project Share means the amount (expressed as a percentage) equal to (i) the Floor Area of the Premises divided by (ii) the Floor Area of all leased and occupied space in the Buildings.  The percentage determined by the preceding sentence shall be rounded upward to the nearest one-tenth of one percent (0.1%).  Initially, Tenant’s Project Share (other than with respect to Food Service Costs) shall be 7.2% (23,666/330,457) Tenant’s Project Share (other than with respect to Food Service Costs) shall be recalculated at any time at which the Leasable Square Footage of either the Premises or the Buildings is changed, provided that there shall be no recalculation unless there is a physical expansion or contraction in the Premises or a Building or a Building is added or demolished.  Tenant’s Project Share with respect to Food Service Costs shall be recalculated upon each change in the level of occupancy of the Buildings.

 

“Tenant’s Share” means, as applicable, Tenants Building Share or Tenant’s Project Share.

 

“Tenants Utility Costs” has the meaning set forth in Item 10B of the Summary of Basic Terms.

 

ARTICLE II
  LEASE OF PREMISES

 

Section 2.1                          Lease Of The Premises.  Landlord does hereby lease the Premises to Tenant, and Tenant hereby leases the Premises from Landlord, upon and subject to the terms and provisions of this Lease and all zoning ordinances, and easements, restrictions, and conditions of record.  Tenant shall have

 

11

 

the right, in connection with its use of the Premises, to use the water neutralizer and emergency generator serving the Premises as of the date of this Lease for their intended purposes.

 

Section 2.2                          Common Rights.  The Premises are leased subject to, and with the benefit of, the non-exclusive right to use in common with others at any time entitled thereto the Common Areas and Common Facilities for all such purposes as such areas may be reasonably designated, but only in connection with lawful business in the Building and in accordance with the Rules and Regulations.  Landlord and/or Other Landlords shall have the right from time to time to designate or change the number, locations, size or configuration of the Buildings, including, without limitation, the Common Areas, exits and entrances, and to modify or replace the Common Facilities, and to permit expansion and new construction therein, provided that the same will not cause an unreasonable interference with Tenant’s use and enjoyment of the Premises.  Tenant shall not have the right to use those portions of the Common Areas designated from time to time by Landlord and/or Other Landlords as for the exclusive use of one or more other tenants, provided that Landlord shall not, and shall not permit any Other Landlords to, make such a designation as would cause an unreasonable interference with Tenant’s use and enjoyment of the Premises.  Landlord may, but shall not be required to, provide or share in Amenity Facilities (as defined in the Declaration) as Common Areas within the Project from time to time.  Prior to providing or accepting any Amenity Facility, other than the existing Food Service Area, as a Common Area, Landlord will consult with Tenant, but Landlord may provide or accept any such Amenity Facility in the exercise of Landlord’s discretion; provided, however, that if Landlord accepts any such Amenity Facility, it shall provide for the use thereof to Tenant and all other tenants at the Building on a non-discriminatory basis.  Tenant shall have access to the Premises (which includes passenger and freight elevator service) twenty-four hours per day, 7 days per week, 365 days per year, subject to Landlord’s reasonable security requirements, if any, from time to time.

 

Section 2.3                          Parking.

 

(a)                                 Tenant’s Invitees are authorized to use Tenant’s Parking Allocation (as set forth in the Summary of Basic Terms).  Landlord represents to Tenant that Landlord has rights in Parking Garage A consistent with Tenant’s rights under this Section, as provided for in the Declaration.  Tenant shall pay to or at the direction of Landlord a monthly parking charge, in addition to Base Rent, for each parking space that Tenant is authorized to use based on the fair market charge for similar spaces in the market area of the Project, as determined and adjusted by Parking Garage A Owner from time to time.  Tenant shall not (i) permit any of Tenant’s Invitees (other than visitors) to park in spaces designated as “visitor” spaces, (ii) permit any of Tenant’s Invitees to park in spaces designated as “reserved” spaces (unless reserved for Tenant), (iii) permit the total number of passenger automobiles parked in Parking Garage A by Tenant’s Invitees, at any time, to exceed the number specified in Item 8 of the Summary of Basic Terms, (iv) permit any passenger vehicles of Tenant’s Invitees to park in any Parking Areas other than Parking Garage A, and (v) except for delivery trucks using designated loading and unloading facilities, permit any of Tenant’s Invitees to park any vehicle on the Project other than passenger automobiles.  Landlord and/or Other Landlords may, from time to time, designate one or more spaces in Parking Garage A as reserved for the exclusive use of one or more of the tenants of the Project and/or for Landlord’s and/or Other Landlords’ Invitees, so long as Landlord causes to be available to Tenant the parking required by this Section.

 

(b)                                 Landlord assigns to Parking Garage A Owner any and all right, title and interest with respect to the parking charges for the parking spaces that Tenant is authorized to use (such parking charges being called “Tenant’s Parking Charges”).  Landlord hereby directs Tenant to pay Tenant’s Parking Charges to Parking Garage A Owner or to an operator of Parking Garage A designated by Parking Garage A Owner (an “Operator”), which payments shall satisfy Tenant’s obligations under this Lease with respect to Tenant’s Parking Charges as if they had been made directly to Landlord.  Tenant

 

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acknowledges that Landlord has assigned to Parking Garage A Owner any and all right, title and interest with respect to Tenant’s Parking Charges, and shall pay Tenant’s Parking Charges to Parking Garage A Owner or the Operator when due.

 

Section 2.4                          Lease Term.  The Lease Term shall commence at 12:01 A.M on March 1, 2014 and shall end at 11:59 P M on February 28, 2017.

 

Section 2.5                          Security Deposit.

 

(a)                                 Tenant shall deliver to Landlord one-half of the $315,546.68 Security Deposit, or $157,773.34, simultaneously with the execution and delivery of this Lease, and shall deliver to Landlord the other one-half of the Security Deposit on or before March 1, 2014.  The Security Deposit shall be in the form of cash or a letter of credit which satisfies the conditions of Section 2.5(b) (“Letter of Credit”).  If the Security Deposit is in the form of a Letter of Credit, then the one-half of the Security Deposit to be made on or before March 1, 2014 shall be accomplished by (i) Tenant causing a Letter of Credit in the amount of $315,546.68 to be issued and delivered to Landlord, in which event Landlord shall return to Tenant within two Business Days thereafter the Letter of Credit in the amount of $157,773.34 delivered to Landlord upon the execution of this Lease, (ii) Tenant causing a second Letter of Credit in the amount of $157,773.34 to be issued and delivered to Landlord, or (iii) Tenant causing an amendment to the existing Letter of Credit to be issued so that the Letter of Credit, as amended, is in the amount of $315,546.68.

 

(b)                                 If the Security Deposit is in the form of a Letter of Credit, such Letter of Credit must satisfy all of the following conditions:  (i) the Letter of Credit must be in the exact form attached hereto as Exhibit E, or in such other form as Landlord may have approved, with an expiration date not less than one (1) year after the date of the Letter of Credit; (ii) the beneficiary of the Letter of Credit must be Landlord or Landlord’s designee; (iii) the Letter of Credit must be irrevocable, unconditional and transferable one or more times without charge; and (iv) the Letter of Credit must be issued by Silicon Valley Bank, Citizens Bank, or another bank reasonably satisfactory to Landlord.  If, at any time, the issuer of the Letter of Credit gives notice of its election not to renew, extend and/or reissue the Letter of Credit, then Tenant shall, by the earlier of (A) thirty (30) days after such notice or (B) five (5) Business Days prior to the expiration of the term of the Letter of Credit, deliver to Landlord (1) a replacement Letter of Credit satisfying all of the above conditions or (2) cash in the full amount of the expiring Letter of Credit; and if Tenant fails to timely deliver to Landlord a replacement Letter of Credit as provided above or cash in the full amount of the expiring Letter of Credit, such failure shall constitute an Event of Default and, in addition to any other rights which Landlord might have by reason of such Event of Default, Landlord may draw on the Letter of Credit and hold the proceeds of such drawing as the Security Deposit.  If (x) any proceedings under the Bankruptcy Code, receivership or any insolvency law are instituted with the issuer of the Letter of Credit as debtor or (y) the bank issuing the Letter of Credit is taken over by the Federal Deposit Insurance Corporation, the Resolution Trust Corporation or a similar entity, then Landlord may draw on the Letter of Credit and hold the proceeds of such drawing as part of the Security Deposit, unless Tenant either provides cash in lieu of the Letter of Credit or provides a new Letter of Credit issued by a bank reasonably satisfactory to Landlord.

 

(c)                                  The Security Deposit is security for the faithful performance and observance by Tenant of the terms, provisions and conditions of this Lease and is not an advance payment of rent.  If an Event of Default occurs, Landlord may use, apply or retain the whole or any part of the Security Deposit to the extent required for payment of any Base Rent, Additional Rent, or any other sum as to which Tenant is in default or for any sum which Landlord may expend or may be required to expend by reason of the occurrence of an Event of Default, including, but not limited to, any damage or deficiency accrued before or after summary proceedings or other re-entry by Landlord, including the costs of such proceeding or re-entry and further including, without limitation, reasonable attorneys’ fees.  Landlord

 

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shall always have the right to apply the Security Deposit, or any part thereof, as aforesaid, without prejudice to any other remedy or remedies which Landlord may have, or Landlord may pursue any other such remedy or remedies in lieu of applying the Security Deposit or any part thereof.  No interest shall be payable on the Security Deposit and Landlord shall have the right to commingle the Security Deposit with other funds of Landlord, but Landlord shall keep the Security Deposit free from the claims of Landlord’s creditors.  If Landlord shall apply the Security Deposit in whole or in part, Tenant shaft within ten (10) days after written demand pay to Landlord the amount so applied to restore the Security Deposit to its original amount.  Because elements of Additional Rent may be subject to annual reconciliation based on actual amounts determined to be due, in addition to the other rights provided herein to Landlord regarding the Security Deposit, Landlord shall have the right, in its discretion, upon the end of the Lease and delivery of the Premises in accordance with the terms hereof, to hold a portion of the Security Deposit equal to no more than twenty percent (20%) of any estimated amounts previously payable by Tenant in respect of Additional Rent for the preceding year until completion of such reconciliation (but in no event more than ninety (90) days after expiration of the Lease Term), at which time Landlord has the right to deduct any amounts then determined to be due from the remaining Security Deposit and return promptly thereafter any balance of the Security Deposit to Tenant; provided, however, that Landlord may not withhold from the Security Deposit an amount greater than the amount which Landlord reasonably estimates will be owing by Tenant upon completion of such reconciliation.  The portion of the Security Deposit held by Landlord that is not subject to the foregoing reconciliation shall be returned to Tenant not later than sixty (60) days following the expiration or earlier termination of the Lease Term.  If the remaining Security Deposit is not sufficient to pay Tenant’s obligations hereunder, Tenant shall pay the same within thirty (30) days of billing from Landlord.  In the event of a sale or other transfer of the Project, or leasing of the entire Project including the Premises subject to Tenant’s tenancy hereunder,  Landlord shall transfer the Security Deposit then remaining at no additional cost to Tenant to the vendee or lessee, such vendee or lessee shall thereupon become entitled to the rights and subject to the obligations of the landlord under this Lease (including the obligations with respect to the Security Deposit), and Landlord shall thereupon be released from all liability for the return of such Security Deposit to Tenant.  In such event, Landlord shall cause the transferee of the Security Deposit to issue a written acknowledgement of receipt thereof and Tenant agrees after receipt of such notice to look solely to the new landlord for the return of the Security Deposit then remaining.  Tenant further covenants that it will not assign or encumber or attempt to assign or encumber the Security Deposit and that neither Landlord nor its successors or assigns shall be bound by any such assignment, encumbrance, attempted assignment or attempted encumbrance.

 

Section 2.6                          Lease Amendment.  If, pursuant to any provision of this Lease, there results a change in any of the terms or amounts in the Summary of Basic Terms (including, without limitation, the Leasable Square Footage of the Premises, the Leasable Square Footage of the Building, the Leasable Square Footage of the Project, the Allowance, the Base Rent, Tenant’s Building Share or Tenant’s Project Share) then in effect, Landlord and Tenant will promptly execute a written amendment to, and restatement of, the Summary of Basic Terms, substituting the changed (or confirmed) terms and recomputed amounts in lieu of each of the applicable terms and amounts then in effect which have been changed.  As of the effective date of the amendment to the Summary of Basic Terms, the changed terms (and recomputed amounts) will be effective for all purposes of this Lease, and the amended and restated Summary of Basic Terms will be a part of, and incorporated into, this Lease.

 

Section 2.7                          Pre-Term Occupancy.  As of the date of this Lease, the Premises are leased by Landlord to FoldRx under the FoldRx Lease.  Tenant intends to occupy the Premises as a subtenant under the Genocea Sublease.  The FoldRx Lease (and the Genocea Sublease) will expire on February 28, 2014, and the Lease Term will commence immediately upon such expiration, on March 1, 2014.  If the FoldRx Lease (and therefore the Genocea Sublease) should terminate prior to February 28, 2014 for any reason other than a default by Tenant under the Genocea Sublease, then Tenant may continue to occupy the

 

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Premises from the effective date of such termination through February 28, 2014, provided that such occupancy shall be on and subject to the terms and conditions of the FoldRx Lease (assuming that the FoldRx Lease had not terminated), including but not limited to the Base Rent and Additional Rent provided for in the FoldRx Lease.

 

ARTICLE III
  CONDITION OF PREMISES; SIGNS

 

Section 3.1                          Condition of Premises.  Upon commencement of the Lease Term, Tenant shall accept possession of the Premises in its then current condition, as is, and Landlord will not have any obligation to make any alterations or improvements to the Premises to prepare the Premises for Tenant’s occupancy.

 

Section 3.2                          Tenant Improvements; Allowance.  Tenant may make initial alterations and improvements to the Premises (the “Tenant Improvements”), on and subject to the terms and conditions set forth in Section 7.5.  Tenant may perform the Tenant Improvements prior to commencement of the Lease Term.  Tenant shall perform the Tenant Improvements in a good and workmanlike manner, in accordance with all Legal Requirements, and in accordance with Section 7.5.  For purposes of approval of plans and specifications contemplated by Section 7.5, Landlord acknowledges that Tenant has submitted to Landlord, and Landlord has approved, (a) the progress drawing prepared by Interstate Electrical Services dated July 2, 2012 and (b) the HVAC plans prepared by Environmental Systems, Inc. (undated).  Landlord will provide an amount up to the Allowance to or for the benefit of Tenant to pay or reimburse Tenant for costs of designing and performing the Tenant Improvements.  Disbursement of the Allowance to or at the direction of Tenant shall be conditioned on the subject Tenant improvements having been performed in accordance with the provisions of this Lease, and shall be subject to Landlord’s receipt of a request for payment in form and with backup reasonably satisfactory to Landlord, including but not limited to such certifications, lien waivers and other documents from Tenant, Tenant’s contractor and Tenant’s architect as Landlord may reasonably require.  Landlord may inspect the subject Tenant Improvements as a condition to making any requested disbursement of the Allowance to confirm the status of such Tenant Improvements and that such Tenant Improvements have been performed in accordance with the provisions of this Lease.  Tenant may not qualify for disbursement of the Allowance prior to commencement of the Lease Term, but the Tenant Improvements for which Tenant may qualify for disbursement of the Allowance may have been performed prior to commencement of the Lease Term.

 

Section 3.3                          Signs.  Tenant shall have the right, at Landlord’s cost, to be identified on the tenant directory at the main entrance of the Building.  Tenant shall also have the right, at Tenant’s cost, to install signage at Tenant’s entrance to the Premises (which shall not be subject to Landlord’s approval).  Except for the signs permitted under this Section, Tenant shall not erect any signs which are visible from the exterior of the Building.  Tenant shall not erect signs except in compliance with all applicable Legal Requirements.  Tenant shall be solely responsible for confirming that any proposed sign is in compliance with all such requirements.  Tenant shall maintain its signs (other Than signs for which Landlord is responsible hereunder) in good repair and condition.  Upon termination of this Lease, Tenant shall promptly remove all Tenant’s signage installed at its expense and restore all damage related to the installation, existence and/or removal of such signage.

 

ARTICLE IV
  BASE RENT; ADDITIONAL RENT

 

Section 4.1                          Base Rent.  Tenant shall pay Base Rent in the amounts set forth in Item 9 of the Summary of Basic Terms.  Base Rent shall be payable in equal monthly installments of one-twelfth (1/12th) of the annual Base Rent then in effect and shall be paid without offset for any reason, in advance,

 

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on the first day of each calendar month during the Lease Term.  Base Rent and Additional Rent shall be paid as specified by Landlord either (i) by an “electronic funds transfer” system arranged by and among Tenant, Tenant’s bank and Landlord, or (ii) by check sent to Landlord’s office c/o “Robert A. Schlager,” or at such other place as Landlord shall from time to time designate in writing.  The parties acknowledge and agree that the obligations owing by Tenant under this Section 4.1 are rent reserved under this Lease, for all purposes hereunder, and are rent reserved within the meaning of Section 502(b)(6) of the Bankruptcy Code or any successor provision thereto.

 

Section 4.2                          Certain Additional Rent.  Tenant shall pay, without offset for any reason, all payments of Additional Rent payable by Tenant to Landlord hereunder.  If Tenant fails to pay any Additional Rent, Landlord shall have all the rights and remedies available for failure to pay Base Rent.  The parties acknowledge and agree that the obligations owing by Tenant under this Section are rent reserved under this Lease, for all purposes hereunder, and are rent reserved within the meaning of Section 502(b)(6) of the Bankruptcy Code or any successor provision thereto.

 

Section 4.3                          Taxes.

 

(a)                                 Tenant shall pay to Landlord, as Additional Rent, an amount equal to Tenant’s Share of Taxes (being Tenant’s Building Share of Building Taxes and Tenant’s Project Share of Project Taxes).  Such amounts shall be estimated in good faith by Landlord at the end of each Tax Fiscal Year, and shall be payable to Landlord in equal estimated monthly installments on the first day of each calendar month during the Lease Term (prorated for any partial months), subject to readjustment from time to time as reasonably determined by Landlord and when the actual amounts are determined.  After readjustment, any shortage shall be due and payable by Tenant within thirty (30) days of written demand by Landlord and any excess shall, unless an Event of Default then exists, be credited against future Additional Rent obligations, or refunded within ninety (90) days if the Lease Term has ended and Tenant has no further obligations to Landlord.  If the taxing authority provides an estimated tax bill, then monthly installments of Taxes shall be based thereon until the final tax bill is ascertained.  Landlord shall furnish to Tenant, upon Tenant’s request, but not more than once in any year, a copy of the most recent tax bill and any estimated tax bill.

 

(b)                                 If, after Tenant shall have made any payment under this Section 4.3, Landlord shall receive a refund (the “Refund”) of any portion of the Taxes paid on account of any Tax Fiscal Year in which such payments shall have been made as a result of an abatement of such Taxes, by final determination of legal proceedings, settlement or otherwise, Landlord shall, within thirty (30) days after receiving the Refund, pay to Tenant (unless an Event of Default then exists) an amount equal to (i) Tenant’s Share of the Refund, which payment to Tenant shall be appropriately adjusted if Tenant’s Share of Taxes covered a shorter period than covered by the Refund less (ii) Tenant’s Share of all expenses incurred by Landlord in connection with such proceedings (including, but not limited to, attorneys’ fees, costs and appraisers’ fees).  Landlord shall have sole control of all tax abatement proceedings.

 

(c)                                  Tenant’s obligation in respect of Taxes shall be prorated for any partial Tax Fiscal Year at the beginning or end of the Lease Term.  If the final tax bill for the Tax Fiscal Year in which such expiration or termination of this Lease occurs shall not have been received by Landlord, then within thirty (30) days after the receipt of the tax bill for such Tax Fiscal Year.  Landlord and Tenant shall make appropriate adjustments of estimated payments.

 

(d)                                 Without limiting the generality of the foregoing, Tenant shall pay all rent and personal property taxes attributable to its signs or any other personal property including but not limited to its trade fixtures, the existing or any future floor coverings, wall treatments and light fixtures in the Premises.

 

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Section 4.4                          Insurance Costs.  Tenant shall pay to Landlord, as Additional Rent, amounts equal to Tenant’s Project Share of Project Insurance Costs and Tenant’s Building Share of Building Insurance Costs.  Tenant’s Project Share of Project Insurance Costs and Tenant’s Building Share of Building Insurance Costs shall be estimated in good faith by Landlord at the end of each calendar year, and shall be payable in equal estimated monthly installments on the first day of each calendar month during the Lease Term (prorated for any partial-months), subject to readjustment from time to time as reasonably determined by Landlord and also when actual Project insurance Costs and Building Insurance Costs are determined.  After a readjustment, any shortage shall be due and payable by Tenant within thirty (30) days of written demand by Landlord and any excess shall, unless an Event of Default then exists, be credited against future Additional Rent obligations, or refunded promptly if the Lease Term has ended and Tenant has no further obligations to Landlord.  Landlord shall provide Tenant upon request with reasonable supporting documentation for the Insurance Costs.

 

Section 4.5                          Operating Costs.  Tenant shall pay to Landlord, as Additional Rent, amounts equal to Tenant’s Project Share of Project Operating Costs and Tenant’s Building Share of Building Operating Costs.  For purposes of determining Tenants Project Share of Project Operating Costs far any year during which the Project is less than ninety-five percent (95%) occupied, the actual Project Operating Costs shall be equitably adjusted to reflect ninety-five percent (95%) occupancy and normal, ongoing operation.  For purposes of determining Tenants Building Share of Building Operating Costs for any year during which the Building is less than ninety-five percent (95%) occupied, the actual Building Operating Costs shall be equitably adjusted to reflect ninety-five percent (95%) occupancy and normal, ongoing operation.  Tenants Project Share of Project Operating Costs and Tenant’s Building Share of Building Operating Casts shall be estimated in good faith by Landlord at the end of each calendar year, and shall be payable in equal estimated monthly installments on the first day of each calendar month during the Lease Term (prorated for any partial months), subject to readjustment from time to time as determined by Landlord and also when actual Project Operating Costs and Building Operating Costs are determined.  After a readjustment, any shortage shall be due and payable by Tenant within thirty (30) days of written demand by Landlord and any excess shall, unless an Event of Default then exists, be credited against future Additional Rent obligations, or refunded promptly if the Lease Term has ended and Tenant has no further obligations to Landlord.  Landlord shall provide tenant upon request with reasonable supporting documentation for the Operating Costs and access to Landlord’s books and records in the event of an audit as provided in Section 4.7.

 

Section 4.6                          Tenant’s Utility Costs.  Landlord shall, to the extent practical and at its sole expense, cause the Premises to be separately metered or submetered for electric and gas use, including, without limitation, with respect to all variable air volume (“VAV”) boxes and pre-healers, HVAC equipment and systems, lighting and outlets serving the Premises, such that Tenant’s Utility Costs are allocated based on the actual use of such utilities within the Premises.  Tenant shall pay for utilities serving the Premises in accordance with Section 7.2.

 

Section 4.7                          Tenant’s Audit Rights.  Annually, Landlord shall furnish to Tenant a report setting forth in reasonable detail the Project Operating Costs, Building Operating Costs, Project Insurance Costs, Building Insurance Costs, Project Taxes and Building Taxes for the immediately preceding calendar year (in the case of Operating Costs and Insurance Costs) or Tax Fiscal Year (in the case of Taxes).  Tenant shall have the right to audit Landlord’s books and records relating to Operating Costs, Insurance Costs and/or Taxes with respect to the period covered by each such report by delivering a notice of its intention to perform such audit to Landlord within ninety (90) days after Tenant’s receipt of such report, in which event Tenant shall perform such audit within one hundred twenty (120) days after Tenant’s receipt of such report.  If, as a result of such audit, Tenant believes that it is entitled to receive a refund of any Additional Rent paid by Tenant in respect of Operating Costs, Insurance Costs and/or Taxes, Tenant shall deliver to Landlord, no later than one hundred thirty (130) days after Tenant’s receipt of the aforesaid

 

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report, a notice demanding such a refund, together with a statement of the grounds for each such demand and the amount of each proposed refund.  The cost of any such audit shall be paid by Tenant, except that, if it is established that the Additional Rent in respect of Operating Costs, Insurance Costs or Taxes charged to Tenant for the period in question was overstated by more than five percent (5.0%), the reasonable cost of such audit shall be paid or reimbursed to Tenant by Landlord.  An overstatement shall not be deemed to exist due to a Refund.  Any audit shall be performed by either (a) Tenant’s regular employees or (b) a reputable certified public accountant reasonably acceptable to Landlord whose compensation is not, directly or indirectly, contingent in whole or in part on the results of the audit.  If Landlord determines that a report previously furnished by Landlord was in error, Landlord may furnish a corrective or supplemental report to Tenant within two years after the original report was furnished, and if such corrective or supplemental report results in increased Additional Rent, the periods for Tenant to request and perform an audit of Landlord’s books and records relating to Operating Costs.  Insurance Costs and/or Taxes with respect to the period covered by the corrective or supplemental report shall be reinstated and commence as of Tenant’s receipt of such corrective or supplemental report.  Landlord shall make available all books and records required by Tenant for its audit at Landlord’s office in Needham, Massachusetts during normal business hours.

 

ARTICLE V
  USE OF PREMISES

 

Section 5.1                          Permitted Use.  Tenant shall use and occupy the Premises only for the Permitted Use.  Landlord does not make any representation or warranty to Tenant that Tenants use of the Premises for the Permitted Use will comply with Legal Requirements, and Tenant is responsible for confirming such compliance.

 

Section 5.2                          Restrictions on Use.  Tenant shall use the Premises in a careful, safe and proper manner, shall not commit or suffer any waste on or about the Project, and shall not make any use of the Project which is prohibited by or contrary to any Legal Requirements or the Declaration, or which would cause a public or private nuisance.  Tenant, at its own expense, shall obtain any and all permits, approvals and licenses necessary for use of the Premises, and if requested by Tenant, Landlord shall, at no out-of-pocket cost to Landlord, cooperate with Tenant to obtain the same.  Tenant shall not overload the floors or other structural parts of the Building, the maximum floor loading being 100 pounds per square foot, and shall not commit or suffer any act or thing on the Project which is illegal, dangerous, or which unreasonably disturbs other tenants.  Tenant shall not do or permit to be done any act or thing on the Project which will invalidate or be in conflict with any insurance policies, or which will increase the rate of any insurance, covering the Building or any of the Other Buildings.  If, because of Tenant’s failure to comply with the provisions of this Section or due to any use of the Premises or activity of Tenant In or about the Project, the Insurance Costs are increased, Tenant shall pay Landlord the amount of such increase.  Tenant shall cause any fire lanes located within the Project to be kept free of all parking associated with its business or occupancy Tenant shall conduct its business at all times so as not to annoy or be offensive to other tenants and occupants of the Project, the parties hereby agreeing that (i) Tenant’s keeping of animals in the Premises as provided in Tenant’s Permitted Use and (ii) the fact that Tenant may conduct animal experimentation in the Premises which may be offensive to other tenants and occupants of the Project shall not constitute a nuisance or otherwise be a basis for a default of Tenant under this Section 5.2.  Landlord shall notify the other tenants in the Project that Tenant’s Permitted Use of the Premises includes its vivarium use.  Tenant shall not permit the emission of any objectionable noise or odor from the Premises and shall at its own cost install such extra sound-proofing or noise control systems and odor control systems, as may be needed to eliminate such objectionable noise, vibrations and odors, if any, emanating from the Premises being heard, felt or smelled outside the Premises.  Tenant shall not place any file cabinets, bookcases, partitions, shelves or other furnishings or equipment in a location which blocks any windows Landlord shall use commercially reasonable efforts to include

 

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provisions similar to those set forth above in this Section 5.2 in leases with other tenants of the Project, subject to such changes as Landlord may negotiate in good faith.

 

Section 5.3                          Hazardous Materials.

 

(a)                                 Tenant (i) will not conduct any activity on the Premises that will use or produce any Hazardous Materials, except for such activities that are both (1) part of the ordinary course of Tenant’s business activities and (2) conducted in accordance with all Environmental Laws; (ii) will not use the Premises in any manner for the storage of any Hazardous Materials except for storage of such materials that are both (1) used in the ordinary course of Tenant’s business and (2) properly stored in a manner and location satisfying all Environmental Laws; (iii) will not install any underground tanks of any type; and (iv) will not permit any Hazardous Materials to be brought onto the Premises, except in the ordinary course of Tenant’s business and in compliance with all Environmental Laws.  If any Hazardous Materials are brought or found on the Premises in violation of the above provisions of this Section, the same shall be immediately removed by Tenant, with proper disposal, and all required cleanup procedures shall be diligently undertaken pursuant to all Environmental Laws.  If at any time during or after the Lease Term the Premises are found to be so contaminated or subject to such conditions as a result of Tenant’s failure to comply with the foregoing provisions, Tenant shall defend and hold Landlord harmless from all claims, demands, actions, liabilities, costs, expenses, damages and obligations of any nature arising from or as a result of the use of the Premises by Tenant or its Invitees Tenant will maintain on the Premises a list of all materials stored at the Premises for which a material safety data sheet (an “MSDS”) was issued by the producers or manufacturers thereof, together with copies of the MSDS’s for such materials, and shall deliver such list and MSDS copies to Landlord upon Landlord’s request therefor.  Except for Hazardous Materials that existed in or on the Premises as of the date of this Lease, Tenant shall remove all Hazardous Materials from the Premises in accordance with the applicable standard required by the Environmental Laws for premises with a laboratory use before the earlier of the date Tenant vacates the Premises and the date Tenant’s right to possess the Premises ends.  Landlord may, upon at least five (5) business days’ prior written notice to Tenant (or a shorter period of prior written notice in the case of emergencies), enter the Premises and conduct environmental inspections and tests therein as it may reasonably require from time to time, provided that Landlord shall use reasonable efforts to minimize the interference with Tenant’s business, which may include conducting such inspections and tests after normal business hours if required by Tenant.  Such inspections and tests shall be conducted at Landlord’s expense, unless they reveal the presence of Hazardous Materials in violation of the above provisions of this Section or that Tenant has not complied with the requirements of this Section, in which case Tenant shall reimburse Landlord for the reasonable cost thereof within ten (10) days after Landlord’s request therefor.

 

(b)                                 In connection with FoldRx’s discontinuance of occupancy of the Premises, FoldRx has (i) submitted to the Radiation Control Program of the Department of Public Health of the Commonwealth of Massachusetts a request for termination of Materials License No 55-0255 with supporting documents and (ii) obtained from the Radiation Control Program of the Department of Public Health of the Commonwealth of Massachusetts an Amendment No. 04 dated October 19, 2011 terminating License No 55-0558 (collectively, the “Decommissioning Materials”).  Landlord has furnished a copy of the Decommissioning Materials to Tenant.  Tenant shall not be responsible for the removal or remediation of any radioactive material in or on the Premises as of the date of this Lease.

 

(c)                                  Landlord represents to Tenant that Landlord has not received any written notice, demand, claim, citation, complaint, request for information or similar communication with respect to the existence of Hazardous Materials at the Project in violation of Environmental Laws.  The parties acknowledge that Tenant will apply for a transfer of its existing 2012 Flammable Materials Permit from the City of Cambridge Fire Department for application to the Premises.  Landlord will not take any action

 

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that would reduce the amount of flammable materials that can be stored in the Premises pursuant to such permit.

 

Section 5.4                          Rooftop Equipment.  At no additional rent to Tenant, but otherwise at Tenant’s cost, Tenant shall have the right to install and maintain Rooftop Equipment on the roof of the Building for Tenant’s use in connection with Tenant’s business (provided that Tenant shall not be permitted to make any alterations or installations that, in Landlord’s reasonable judgment, could invalidate or otherwise adversely affect any roof warranty), subject to (a) Legal Requirements, (b) the terms and conditions of this Lease (including, but not limited to, Section 5.2 and Article VII), and (c) Landlord’s written approval (not to be unreasonably withheld, conditioned or delayed) of the size and location of such Rooftop Equipment, together with the plans and specifications therefor.  Tenant shall have access to the roof of the Building for the purpose of installing, using, maintaining, repairing and replacing Rooftop Equipment, subject to Landlord’s reasonable requirements.  Tenant shall not allow any third parties, other than affiliates of Tenant and permitted subtenants and assignees, to use any Rooftop Equipment installed by Tenant.

 

ARTICLE VI
  LANDLORD’S SERVICES

 

Section 6.1                          Landlord’s Services.  Landlord shall furnish to the Building the services set forth below in this Section, subject to the conditions stated in this Lease.  The cost of certain of these services are to be (i) paid by Tenant, as provided in this Lease, or (ii) included in Operating Costs, Insurance Costs or Taxes, as applicable

 

(a)                                 Building.  Landlord shall maintain and keep in good condition and repair the exterior and structure of the Building, the Common Areas of the Building and mechanical elements of the Building, including the roof and roof structure, the elevators, and the utility lines and systems outside the Building (except to the extent those utility lines or systems are the property or responsibility of the applicable utility company).  Landlord shall use commercially reasonable efforts to enforce its rights under the Declaration to cause Parking Garage A and the landscaping of the Project to be maintained in good condition and repair.

 

(b)                                 Systems.  Subject to Tenant’s obligations under Section 7.4, Landlord shall operate, maintain and keep in good condition and repair the heating, ventilating and air conditioning system, the plumbing system and the electrical system of the Building, including without limitation the HVAC and air handling systems serving the Premises.  Landlord shall provide heating and air conditioning services to the Premises to heat and cool the Premises at temperatures in accordance with ASHRAE standards from 8.00 a.m. to 6:00 p.m., Monday through Friday, and 8:00 a.m. to 1.00 p.m., on Saturdays, excluding holidays, and at such other times as Tenant may reasonably request.

 

(c)                                  Water and Sewer.  Cold and hot water at standard Building temperatures will be available for ordinary drinking, cleaning, sanitary, lavatory and laboratory purposes.  Landlord may install a water meter at Landlord’s expense and thereby measure Tenant’s water consumption.  Tenant shall pay Landlord, as Additional Rent, within thirty (30) days after invoice the cost of all water consumption so metered, including without limitation any and all sewer rents, taxes or levies assessed by any governmental authority or utility in connection with metered consumption.  Such meter and installation equipment shall be maintained in good working order and repair at Tenant’s expense.  Any water or sewer services charged directly to other tenants of the Building shall not be included in Operating Costs.

 

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(d)                                 Elevators.  Landlord will provide three automatic operatorless elevators in the Building (two passenger elevators and one freight elevator).

 

(e)                                  Common Areas.  Landlord shall provide heating and air conditioning for the Common Areas inside the Building during business hours.  Landlord shall clean, provide lighting, repair, maintain and provide janitorial services for the Common Areas in order to maintain the Common Areas in first class order and condition.  Notwithstanding the above, any damage to the Common Areas or Common Facilities caused by any of Tenant’s Invitees shall be the sole responsibility of Tenant, subject to Section 13.5.  Landlord shall use commercially reasonable efforts to enforce its rights under the Declaration to cause the exterior Common Areas to be maintained in good condition and repair, including snow and ice removal from access drives and walkways.

 

(f)                                   Waste Removal.  Landlord shall provide or arrange for ordinary and reasonable waste removal services for the Building, provided that Tenant shall, at Tenant’s cost, arrange for the removal of all biohazardous waste from the Premises in accordance with Legal Requirements.  In the event that Landlord determines that Tenant’s quantity of waste is excessive in comparison to other tenants of the Building, or, in the event that Landlord determines that Tenant’s waste is other than waste generated by typical office, laboratory (including vivarium) use, Landlord may bill Tenant directly as Additional Rent for any such additional cost therefor or require that Tenant be responsible for disposing of its own waste.

 

(g)                                  Janitorial Services.  Landlord shall supply or cause to be supplied routine janitorial services for the Common Areas.  Such services may be revised from time to time by Landlord in its commercially reasonable discretion.

 

(h)                                 Taxes.  Landlord shall pay or cause to be paid all Taxes levied upon or with respect to the Project.

 

(i)                                     Utilities.  To the extent any utilities that serve the Premises are not billed directly by the utility provider to Tenant, Landlord shall pay or cause to be paid all such utilities.

 

(j)                                    Insurance.  Landlord shall procure and maintain, or cause to be procured and maintained, in full force and effect fire, casualty and extended coverage insurance with respect to the Project, with vandalism and malicious mischief endorsements, liability insurance with respect to the Common Areas, rent loss insurance and such other insurance upon or with respect to the Project as Landlord and/or Other Landlords determine to be necessary, appropriate and/or desirable (comparable to other similar properties in the City of Cambridge) or is required by Landlord’s and/or Other Landlords’ lender, all with such limits of coverage as Landlord, Other Landlords or their lender may deem necessary, appropriate and/or desirable.

 

(k)                                 Security.  Landlord will provide security for the Building, and will use commercially reasonable efforts to enforce its rights under the Declaration to cause security to be provided for the Project, consistent with the nature and character of the Project: provided that Landlord will not be responsible to Tenant, any of Tenant’s Invitees or any third party for any breach of security.

 

(l)                                     Shuttle Service.  Landlord shall operate, or cause to be operated, a shuttle service between the Project and the public transportation station in the vicinity of the Project.

 

Section 6.2                          Extraordinary Use.  Tenant acknowledges that the services to be supplied by Landlord after occupancy by Tenant will be sufficient only for ordinary office and laboratory uses.  Any

 

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additional capacity or structural support, as determined by Landlord, needed for uses beyond such uses, shall be subject to Landlord’s prior written approval, which approval shall not be unreasonably withheld.

 

Section 6.3                          Interruption; Delay.  Landlord shall have no responsibility or liability for failure or interruption of any such repairs or services referred to in this Article VI, or for any interruption in utility services, caused by breakage,  accident, strikes, repairs, inability after exercise of reasonable diligence to obtain supplies or otherwise furnish services, or for any cause or causes beyond the reasonable control of Landlord (but Landlord, in respect of those matters for which Landlord is responsible, will use reasonable efforts to restore such services or make such repairs as soon as possible), nor in any event for any indirect or consequential damages; and failure or omission on the part of Landlord to furnish such service or make such repair shall not be construed as an eviction of Tenant, nor render Landlord liable in damages, nor entitle Tenant to an abatement of Base Rent or Additional Rent, nor release Tenant from the obligation to fulfill any of its covenants under this Lease, except as provided in Articles X and XI with respect to eminent domain and damage by fire or other casualty.

 

Section 6.4                          Additional Services.  Should Tenant request any additional services, Tenant agrees to pay to Landlord as Additional Rent therefor Landlord’s actual costs for providing such service, plus an additional fifteen percent (15%) of such costs as an administrative fee, within thirty (30) days of Landlord’s billing Tenant therefor.

 

Section 6.5                          Landlord’s Indemnity.  Subject to Section 13.5, Landlord will indemnify and hold Tenant (and any and all Persons claiming by, through or under Tenant) harmless from and against all liabilities, claims, costs and expenses, including reasonable attorneys’ fees, arising from (i) any breach of this Lease by Landlord or any of Landlord’s Invitees or other Person claiming by, through or under Landlord; and/or (ii) any misconduct or negligence of Landlord or any of Landlord’s Invitees, or any accident, injury or damage occurring in, on or about the Project which results or is claimed to have resulted from any misconduct or negligence of Landlord or any of Landlord’s Invitees.  This indemnification and hold harmless agreement shalt survive the termination of this Lease.

 

ARTICLE VII
  CERTAIN OBLIGATIONS OF TENANT

 

Section 7.1                          Rent.  Tenant will promptly pay the Base Rent and Additional Rent, including without limitation any and all fees, charges, expenses, fines, assessments or other sums payable by Tenant to Landlord (or to the applicable provider of utilities) at the time and in the manner provided for in this Lease, all of which shall be deemed to be obligations to pay Base Rent or Additional Rent.

 

Section 7.2                          Utilities.  In addition to gas and electricity which is the subject of Section 4.6 and water and sewer which is the subject of Section 6.1(c), Landlord reserves the right at its expense to cause any or all of Tenant’s other utilities to be separately metered or submetered.  In the event that Tenant is billed directly by a utility provider, then Tenant shall pay such bills directly to such utility provider prior to their due dates.  In the event Tenant’s utility usage is separately metered or sub-metered by Landlord, Tenant shall pay the billed charges therefor to Landlord as Additional Rent within thirty (30) days of Landlord’s billing therefor.  In the event Tenant’s utility usage is not separately metered, then, except for Tenant’s Utility Costs, Tenant shall pay for such usage as a part of the Operating Costs.  Tenant agrees that its use of electric current shall never exceed the capacity of existing feeders, risers and wiring installations in the Building.  Tenant shall not make or perform any alterations to wiring, installations, lighting fixtures or other electrical facilities in any manner without the prior written consent of Landlord, which Landlord will not unreasonably withhold or delay.  Any risers or wiring to meet Tenant’s excess electrical requirements, if requested by Tenant and approved by Landlord, will be installed by Landlord at Tenant’s expense.

 

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Section 7.3                          No Waste.  Tenant shall not overload, damage or deface the Premises nor shall it suffer or permit the same to be done, nor shall it commit any waste.

 

Section 7.4                          Maintenance; Repairs; and Yield-Up.

 

(a)                                 Except for items that are Landlord’s responsibility under Section 6.1, Tenant will keep the Premises neat and clean and maintain the same in good repair, condition and appearance, subject to damage by fire or other casualty and reasonable wear and tear excepted Tenant’s obligation to so maintain and repair the Premises shall apply to all of the Premises, including, without limitation, all doors, glass, fixtures, interior walls, floors, ceilings, and any other systems exclusively serving the Premises, other than the HVAC and air handling systems serving the Premises, and the water neutralizer and emergency generator referenced in Section 2.1.  There is excepted from Tenant’s obligations under this Section only (a) damage to such portions of the Premises not the responsibility of Tenant under this Lease and originally constructed by Landlord, and (b) repairs and work which are otherwise the specific responsibility of Landlord hereunder.  At the end of the Lease Term or sooner termination of this Lease, Tenant shall peaceably surrender and deliver up the Premises, together with the water neutralizer and emergency generator referenced in Section 2.1, to Landlord, broom clean, with all utilities safety capped, and in good repair and condition, subject to reasonable wear and tear and damage by fire or other casualty, and remove all signs and lettering and all personal property, goods and effects belonging to Tenant or anyone claiming through or under Tenant.  Tenant shall cause all maintenance and repair work to conform to Legal Requirements Tenant shall keep the Premises clear of all filth, trash and refuse.  If Tenant fails to perform Tenant’s obligations under the above provisions of this Section, then Landlord will have the right (but not the obligation), without waiving any default by Tenant, to cause such obligations to be performed upon not less than five (5) business days prior written notice to Tenant (or a shorter period of prior written notice, or a contemporaneous written notice, if appropriate in Landlord’s reasonable judgment in light of the nature of Tenant’s obligations to be performed), giving Tenant the opportunity to have its representative observe the performance of such obligations if practical, and if Landlord causes any of such obligations to be performed as permitted above, the costs and expenses reasonably incurred by Landlord in connection therewith shall be due and payable by Tenant to Landlord as Additional Rent upon demand.

 

(b)                                 Tenant shall keep any and all Rooftop Equipment neat and clean and maintain any and all Rooftop Equipment in good repair and condition.  At the end of the Lease Term or sooner termination of this Lease, Tenant shall, at Tenant’s cost, remove the Rooftop Equipment, repair any and all damage to the roof and other parts of the Building resulting from such removal and restore the roof and other parts of the Building affected by the Rooftop Equipment to the same condition as existed prior to the installation of such Rooftop Equipment.

 

Section 7.5                          Alterations by Tenant.  Tenant will not make any change in, or addition to, the Premises without first obtaining, on each occasion, Landlord’s consent in writing as provided below (which consent shall not be unreasonably withheld, conditioned or delayed), and then only at Tenant’s expense (subject to Landlord’s obligation to pay the Allowance), and in a lawful manner and upon such terms and conditions as Landlord, by such writing, shall reasonably approve, which shall include, without limitation, (a) maintenance of insurance in form and substance reasonably satisfactory to Landlord, and (b) compliance with Sections 7.9, 7.11 and 7.13; provided that Landlord’s consent shall not be required for non-structural alterations costing less than $25,000 per alteration and costing less than $50,000 in the aggregate in any calendar year.  Any alteration or addition shall be consistent in appearance with the rest of the Building and the Project and shall be made only after duly obtaining (and providing to Landlord copies of) all required permits and licenses from all governmental authorities.  Tenant will deliver to Landlord in writing a schedule setting forth the details and location of all such proposed alterations or additions and detailed plans and specifications.  The contractor(s) performing the work shall be subject to

 

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Landlord’s approval, which will not be unreasonably withheld.  If required by Landlord’s lender, Tenant shall provide a statutory lien bond with respect to such work.  All approved repairs, installations, alterations, additions or other improvements made by Tenant shall be made in a good and workmanlike manner, between such hours as approved in writing by Landlord, and in such a way that utilities will not be interrupted and other tenants and occupants of the Project will not suffer unreasonable inconvenience or interference as determined by Landlord.  Tenant’s Invitees shall be given such reasonable access to other portions of the Building and the mechanical systems as may be necessary or appropriate to perform such work.  Both during and after the performance of any such work, Landlord shall have free access to any and all mechanical installations in the Premises, including, but not limited to, air conditioning, fans, ventilating systems, machine rooms and electrical closets, and Tenant agrees not to construct or permit the installation of partitions and/or other obstructions in the Premises which might interfere with Landlord’s free access to the Premises or Building, or impede the free flow of air to and from air vents and other portions of the heating, ventilating and air conditioning systems in the Building.  Unless Landlord elects otherwise at the time in which it grants its consent thereto, but subject to Section 7.6, all installations, alterations, additions or improvements in or to the Premises shall be the property of Landlord and shall remain upon, and be surrendered with, the Premises at the end of the Lease Term or sooner termination of this Lease.

 

Section 7.6                          Trade Fixtures and Equipment.  Any trade fixtures installed in, or attached to, the Premises by, and at the expense of, Tenant, and any Rooftop Equipment, shall remain the property of Tenant, if the same may be removed without damage to, or destruction of, the Premises.  Tenant shall have the right, at any time and from time to time during the Lease Term, to remove any and all of its trade fixtures which it may have installed in, or attached to, the Premises, during the Lease Term, and any Rooftop Equipment.  In addition, prior to the end of the Lease Term or sooner termination of this Lease; Tenant shall remove all of Tenant’s trade fixtures, Rooftop Equipment, and voice or data cabling or wiring, unless Landlord gives Tenant a written waiver for same (if Tenant requests, Landlord shall state in writing whether it will grant a waiver at the time Tenant installs a trade fixture).  At any time that Tenant removes any of its trade fixtures, Tenant shall promptly repair the Building as a result of any damage to, or destruction of, the Building caused by the removal of any of its trade fixtures.  Notwithstanding the above provisions of this Section 7.6 to the contrary, Tenant shall surrender the water neutralizer and the emergency generator with the Premises as provided in Section 7.4.

 

Section 7.7                          Compliance with Laws.  Tenant, in its use of the Premises and at its sole expense, shall comply with all Legal Requirements, including, without limitation, all Legal Requirements related to the use, storage, discharge release, removal or existence of Hazardous Materials.  Tenant agrees that the Premises shall be kept in a sanitary and safe condition in accordance with all Legal Requirements.

 

Section 7.8                          Contents at Tenant’s Risk.  All inventory, equipment, goods, merchandise, furniture, fixtures and property of every kind which may be on or about the Premises, and all Rooftop Equipment, shall be at the sole risk and hazard of Tenant, and if the whole or any part thereof shall be destroyed or damaged by fire, water or otherwise, or by the use or abuse of water or by the leaking or bursting of water pipes, or by rising water, or by roof or other structural leak, or by loss of electrical service, or in any other way or manner, no part of such loss or damage shall be charged to or borne by Landlord in any case whatsoever, except that the foregoing shall not exculpate the Landlord from its own negligent acts or omissions.  Tenant agrees to maintain full and adequate insurance coverage on all of its property at the Premises and in the remainder of the Building, including physical damage, theft and business interruption insurance, or Tenant shall be a self-insurer thereof, in which case Tenant shall so advise Landlord in writing and shall be fully responsible for all such damage, and shall indemnify and save harmless Landlord from any loss, cost, expense, damage or liability resulting from Tenant’s failure to have such insurance as required in this Lease.  Such insurance on Tenant’s property shall contain a waiver of subrogation clause in favor of Landlord, or shall name Landlord as an additional insured for the

 

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sole purpose of preventing a subrogation claim against Landlord.  If Tenant is a self-insurer, in whole or in part, Landlord shall be entitled to the same benefits it would have enjoyed had insurance covering the loss in full with a waiver of subrogation clause been in effect, or as if the Landlord has been named on insurance covering the loss in full as an additional insured for the purpose of preventing a subrogation claim.

 

Section 7.9                          Exoneration, Indemnification, Hold Harmless and Insurance.  Tenant will exonerate, indemnify, defend, save and hold harmless Landlord (and any and all Persons claiming by, through or under Landlord) from and against all claims, proceedings, defenses thereof, liabilities, costs, and expenses of any kind and nature, including reasonable legal fees, arising from: (i) any breach of this Lease by Tenant or any of Tenant’s Invitees or other Person claiming by, through or under Tenant, and/or (ii) any misconduct or negligence of any of Tenant’s Invitees, or arising from any accident, injury or damage occurring in, on or about the Project, which such accident, damage or injury results from the negligence or misconduct on the part of any of Tenant’s Invitees.  This exoneration, indemnification and hold harmless agreement shall survive the termination of this Lease.

 

During the Lease Term and any period of holding over, Tenant shall maintain in full force and effect a policy of commercial general liability insurance under which Landlord (and its designees) and Landlord’s mortgagee(s) are named as additional insureds.  Such insurance policy shall be non-cancelable with respect to Landlord without at least thirty (30) days prior written notice to Landlord (to the extent that such a provision is then generally available in insurance policies), and Tenant shall deliver to Landlord prior to commencement of the Lease Term and thereafter at least thirty (30) days prior to the expiration of any then effective coverage a satisfactory written certificate of insurance coverages or the renewal or replacement of such coverages.  The minimum limits of liability of such insurance shall be One Million Dollars ($1,000,000.00) combined single limits for bodily injury and property damage, each occurrence, and One Million Dollars ($1,000,000.00) limits for personal injury, together with an overall umbrella coverage of an additional Four Million Dollars ($4,000,000.00).  Tenant shall not permit any contractor to do any work at or furnish any materials to be incorporated into the Premises without first delivering to Landlord satisfactory evidence of the Contractor’s commercial general liability insurance, worker’s compensation insurance, automobile insurance and, if required by Landlord’s lender, statutory lien bonds, each reasonably acceptable to Landlord and complying with any insurance specifications provided by Landlord.  All insurance requirements imposed upon Tenant or its contractors under this Lease shall be subject to the further requirement that the forms of coverage and the insurers providing the insurance be licensed in the Commonwealth of Massachusetts, be in sound financial condition, carry an A- or better Best’s rating.  and be reasonably acceptable to Landlord.  Tenant agrees that Landlord shall not be responsible or liable to Tenant, or to those Persons claiming by, through or under Tenant, for any loss or damage that may be occasioned by or through the acts or omissions of Persons occupying or using adjoining premises or any part of the Project, or otherwise, or for any loss or damage resulting to Tenant or those Persons claiming by, through or under Tenant, or its or their property, except that the foregoing shall not exculpate the Landlord from acts of its own negligence.

 

Section 7.10                   Landlord’s Access.  Landlord and its representatives shall have the right without charge to it and without reduction in Base Rent or Additional Rent, upon reasonable notice (which shall be at least 24 hours’ notice, except in case of an emergency), at reasonable times and in such manner as shall not unreasonably interfere with Tenant’s business, to enter the Premises for the purpose of showing the Premises to prospective purchasers, tenants (during the last year of the Lease Term) and lenders and investigating repair or maintenance problems and to make such repairs or changes as Landlord deems advisable, and to maintain, use, repair, replace, relocate or introduce pipes, ducts, wires, meters and any other Landlord’s fixtures serving or to serve the Premises or other parts of the Project (which shall be installed above ceilings, behind walls, or in other areas which do not interfere with Tenant’s business), or to maintain or repair any portion of the Project, and, in case of an emergency, whether resulting from

 

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circumstances in the Premises or elsewhere on the Project, Landlord or its representatives may enter the Premises (forcibly, if necessary) at any time to take such measures as may be needed to cope with such emergency.  Such access shall include, but not be limited to, the right to open floors, walls, ceilings, and building systems for the foregoing purposes provided that Landlord shall use commercially reasonable efforts to minimize the amount of time it requires access to the Premises in connection with maintenance, repairs or changes as aforesaid.  Landlord shall repair all such portions of the Premises as may be damaged due to Landlord’s entry as provided herein.  Other than where impractical in case of an emergency, Landlord shall give Tenant reasonable opportunity to have a Tenant’s representative accompany Landlord during any access to the Premises by Landlord pursuant to this Section.  In the event that any such repairs, work or other activities undertaken as herein provided interferes with Tenant’s operations to such a material extent (in the exercise of Tenant’s reasonable business judgment) that Tenant ceases its operations at the Premises for a period in excess of two (2) consecutive Business Days, all rental obligations and other charges thereafter shall be equitably adjusted for so long as such interference continues.

 

Section 7.11                   No Liens.  Tenant shall not permit any mechanics’, laborers’ or materialmen’s liens to stand against the Project or Tenant’s interests in the Premises, this Lease, or the estate created hereby for any labor or materials furnished to Tenant or claimed to have been furnished to Tenant in connection with work of any character performed or claimed to have been performed in or on the Premises by or at the direction or sufferance of Tenant, unless such lien is bonded over to Landlord’s reasonable satisfaction.  Landlord may condition the right of Tenant to do any work which could result in a lien upon the Project or Tenant’s interests in the Premises, this Lease, or the estate created hereby on the delivery and recording of statutory lien bonds (if required by Landlord’s lender) or indemnities satisfactory to Landlord.

 

Section 7.12                   Compliance with Rules and Regulations.  Tenant covenants that all of its Invitees will comply with the Rules and Regulations and all other reasonable rules and regulations as Landlord may from time to time hereafter promulgate to regulate the conduct generally of all the tenants of the Building.  Landlord, however, shall have the reasonable right to change the Rules and Regulations and to waive any one or more of them in the case of any one or more tenants.  Landlord shall enforce the Rules and Regulations, if at all, in a non-discriminatory manner.

 

Section 7.13                   Further Construction.  Landlord shall have the right, but not the obligation, to construct an expansion or additional phase of the Building (an “Addition”).  If Landlord elects to construct an Addition, Tenant shall cooperate with Landlord in connection with Landlord’s plans to construct the Addition and the construction of the Addition, and neither Tenant nor any of its Invitees shall take any action which will interfere with such plans or construction unless the same results in a breach of this Lease by Landlord.  Without limiting the generality of the foregoing, Tenant agrees to provide (at no cost to Tenant) such assistance and cooperation as Landlord may request, from time to time, in order for Landlord to timely obtain all licenses, permits, approvals and certificates of occupancy as may be necessary and/or appropriate in connection with an Addition.  Landlord shall plan the construction of any Addition and related staging in a manner reasonable under the circumstances to minimize any material interference with Tenant’s access to and/or use of the Premises during the performance of such construction, which planning shall include reasonable advance written notice to Tenant of Landlord’s construction activities which are likely to disturb Tenant’s ongoing experiments or lab work in the Premises to facilitate the taking of protective steps by Tenant, and Landlord shall use commercially reasonable efforts to ensure that such construction work, once undertaken, minimizes any material interference with Tenant’s access to and/or use of the Premises.  Tenant acknowledges that, from time to time, dust, noise, vibrations and interruptions to power and other utilities (including water and sewer) and/or inability to maintain the temperature in the Building at customary levels may, among other construction-related interference, occur on a temporary basis (not to exceed more than two (2)

 

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consecutive business days) in connection with the construction of an Addition.  Tenant is responsible to safeguard, insure and protect adequately its property (including any sensitive electronic equipment and computers) during the construction process and Landlord shall not be liable to Tenant for any damage or loss suffered by Tenant as a result of Landlord’s construction activities provided that they are undertaken in a manner consistent with this Section.  Tenant shall notify Landlord if any such construction-related interference should occur.  Upon receipt of written notice from Tenant, Landlord shall undertake those measures reasonable under the circumstances to minimize any material interference with Tenant’s access and/or use of the Premises during the performance of any such construction by Landlord.  Notwithstanding the foregoing, in the event that any such work or other activities undertaken as herein provided interferes with Tenant’s operations to such a material extent (in the exercise of Tenant’s reasonable business judgment) that Tenant ceases its operations at the Premises for a period in excess of two (2) consecutive Business Days, all rental obligations and other charges thereafter shall be equitably abated for so long as such interference continues.  In no event shall Tenant be required to relocate its operations to other premises as a result of any Addition.

 

ARTICLE VIII
  SUBLETTING AND ASSIGNMENT

 

Section 8.1                          Subletting and Assignment.

 

(a)                                 Except as hereinafter set forth, Tenant shall not assign, mortgage, pledge or encumber this Lease nor sublet all or any part of the Premises, nor permit or allow the use of all or any part of the Premises by third party users, such as concessionaires, without, on each occasion, obtaining Landlord’s written consent thereto.  However, Landlord understands that Tenant intends to have third parties manage and operate the vivarium and the chip tank within the Premises, and occupancy of portions of the Premises by such third parties shall not be considered a sublease or other agreement for which Landlord’s consent is required pursuant to the immediately preceding sentence.  Landlord will not unreasonably withhold, condition or delay its consent to any assignment of this Lease or sublease of all or any part of the Premises under the circumstance described in Section 8.1(b)(i), and Landlord will consent to the sublease or all or a portion of the Premises, or the assignment of this Lease, to a Permitted Transferee under the circumstances described in Section 8.1(b)(ii); otherwise, the consent of Landlord to an assignment, sublease or other transaction covered by this Section 8.1(a) will be within Landlord’s sole discretion.  As used herein, the term “assign” or “assignment” shall be deemed to include, without limitation: (i) any transfer of Tenant’s interest in this Lease by operation of law or the merger or consolidation of Tenant with or into any other firm or corporation, or (ii) the transfer or sale of a controlling interest in Tenant (whether in a single transaction or a series of transactions), and whether by sale of its capital stock or otherwise, other than by reason of a sale of a portion of the capital stock of Tenant to raise capital (including any IPO) which does not result in a change in the day-to-day control of Tenant.

 

(b)                                 (i)                                     Landlord will not unreasonably withhold or delay its consent to any assignment of this Lease or any sublease of all or any part of the Premises, so long as (A) the assignment or sublease will not violate the terms of the Declaration; (B) the assignee or subtenant and its proposed use is of a character consistent with the Project; (C) the assignee’s or subtenant’s proposed use is permitted under the terms of this Lease; (D) the assignee or subtenant is qualified to do business in the Commonwealth of Massachusetts; (E) Tenant pays to Landlord all of Landlord’s reasonable expenses arising out of such assignment or sublease, including, without limitation, reasonable attorneys’ fees (not to exceed $3,000); (F) there does not then exist an Event of Default; (G) each of Landlord’s mortgagees has consented in writing to such assignment or sublease if such mortgagee’s consent is required pursuant to the terms of the applicable financing documents; (H) if a sublease, there are not more than a total of three (3) subtenants, including the proposed subtenant under the proposed sublease, in occupancy of the

 

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Premises or portions thereof; and (I) if a sublease, the proposed sublease prohibits any assignment of the sublease or any sub-sublease of any portion of the Premises without the prior written consent of Landlord.

 

(ii)                                  Landlord will consent to a sublease of all or any portion of the Premises, or an assignment of this Lease, to a Permitted Transferee, so long as (1) the subtenant or assignee is qualified to do business in the Commonwealth of Massachusetts; (2) Tenant pays to Landlord all of Landlord’s reasonable expenses arising out of such sublease or assignment, including, without limitation, reasonable attorneys’ fees (not to exceed $3,000); and (3) there does not then exist an Event of Default and no Event of Default will be created as a result of the proposed sublease or assignment or the proposed use by the subtenant or assignee.

 

(c)                                  In the event of any permitted assignment of this Lease or sublease of all or any part of the Premises by Tenant, Tenant shall be jointly and severally liable with the new tenant for the payment of any and all Base Rent and Additional Rent which may become due by the terms of this Lease and for the performance of all covenants, agreements and conditions on the part of Tenant to be performed hereunder.  Tenant shall also pay to Landlord fifty percent (50%) of any rent received as a result of the assignment or sublease which exceeds the Base Rent and Additional Rent payable hereunder on a per square foot basis, after taking into account the costs of the assignment or sublease, including without limitation broker fees, attorneys’ fees, free rent concessions and build out costs, amortized on a straight-line basis over the remaining Lease Term.  No such assignment or sublease shall be valid or effective unless and until (i) the new tenant and Tenant execute and deliver to Landlord an agreement, in form and substance reasonably satisfactory to Landlord, pursuant to which inter alia, such new tenant (A) in the case of an assignment, assumes all of the obligations of Tenant under this Lease, (B) if a sublease, agrees to execute and deliver such estoppel certificates and subordination agreements in the same forms as Landlord may require of Tenant under this Lease, (C) if a sublease, acknowledges that Landlord has no obligations to new tenant under this Lease, the sublease or otherwise and (D) agrees to maintain the same insurance coverages as the insurance coverages which Tenant is required to maintain under this Lease and to provide evidence thereof to Landlord in accordance with the terms of this Lease; and (ii) the new tenant delivers to Landlord evidence of the insurance coverages required to be maintained by such new tenant under the agreement referenced in clause (i) above.  No modification of the terms of this Lease or any course of dealing between Landlord and any assignee or sublessee of Tenant’s interest herein shall operate to release or impair Tenant’s obligations hereunder.

 

(d)                                 Notwithstanding anything to the contrary contained in this Article VIII or other provisions of this Lease, in the event that Tenant seeks Landlord’s consent to an assignment of this Lease, other than to a Permitted Transferee, or a sublease of fifty percent (50%) or more of the Premises, Landlord, at its option and within ten (10) business days following receipt of Tenant’s request for Landlord’s consent, may terminate this Lease (or if the request is for a sublease of less than all of the Premises, at Landlord’s option, Landlord may terminate this Lease as to the portion requested to be sublet and Landlord and Tenant shall execute an amendment to this Lease to modify the Premises and to adjust Base Rent and Tenant’s Share based upon the approximate remaining leasable square footage to the Leasable Square Footage of the Building and the Project).  In such an event, Landlord may enter into a new lease with the proposed assignee or sublessee or any other party on any terms and provisions acceptable to Landlord in Landlord’s sole discretion for the Premises or the portion of the Premises released from this Lease.  Notwithstanding the above provisions of this Section 8.1(d) to the contrary, if Landlord exercises its option to terminate this Lease in whole or in part under this Section 8.1(d), Tenant may, by written notice given to Landlord within five (5) Business Days after Landlord exercises such option, withdraw Tenant’s request for Landlord’s consent to the subject assignment or sublease, in which event this Lease shall not terminate.

 

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(e)                                  Tenant shall not enter into any arrangements with any subtenant or assignee to circumvent, or which have the effect of circumventing, (i) Tenant obligation to share rents received from a sublease or assignment or (ii) any other provisions of this Article VIII.

 

ARTICLE IX
  RIGHTS OF MORTGAGEES AND GROUND LESSORS; ESTOPPEL CERTIFICATES

 

Section 9.1                          Subordination to Mortgages and Ground Leases.  Tenant agrees that this Lease is and shall be and remain subordinate to the lien of any present or future mortgage or mortgages, or ground lease, upon the Project, irrespective of the time of execution or time of recording of any such mortgage or mortgages, or ground lease, and to all renewals, extensions, and modifications therefor or amendments thereto; provided, however, that as a condition to such subordination to any present or future mortgage or ground lease, the mortgagee or ground lessor must agree in writing not to disturb Tenant’s possession of the Premises pursuant to the terms of this Lease so long as no Event of Default exists.  Tenant agrees that it will, upon ten (10) Business Days’ advance written request from Landlord or any holder of a mortgage on all or a portion of the Project or the ground lessor thereof, execute, acknowledge, and deliver any and all commercially reasonable instruments reasonably deemed necessary or desirable by Landlord, or such holder to give effect to, or notice of, such subordination, provided that such subordination includes a non-disturbance agreement for the benefit of Tenant on commercially reasonable terms and conditions specified by the mortgagee or ground lessor.  Without limiting the generality of the immediately preceding sentence, Tenant shall, contemporaneously with the execution of this Lease, (a) enter into a Subordination, Non-Disturbance and Attornment Agreement with Irish Bank Resolution Corporation Limited in mutually agreed form, and (b) enter into a Subordination, Non-Disturbance and Attornment Agreement with Ground Lessor in mutually agreed form.

 

Section 9.2                          Lease Superior at Mortgagee’s or Ground Lessor’s Election.  At the request in writing of any mortgagee, or ground lessor, of the Project, this Lease shall be deemed superior to such mortgage, or ground lease, whether this Lease was executed before or after such mortgage, or ground lease, and Tenant shall execute such commercially reasonable documents to effect the foregoing in recordable form as such mortgagee, or ground lessor, shall request.

 

Section 9.3                          Notice to Mortgagee and Ground Lessor.  Upon receipt of a written request from Landlord or any holder of a mortgage, on all or any part of the Project, or the ground lessor thereof, Tenant will thereafter send any such holder copies of all notices (including, but not limited to, notices of default or termination) given by Tenant to Landlord in accordance with any provision of this Lease.  In the event of any failure by Landlord to perform, fulfill or observe any agreement by Landlord herein or any breach by Landlord of any representation or warranty of Landlord herein, any such holder may at its election cure such failure or breach for and on behalf of Landlord within the same period of time provided herein for Landlord to cure the same or such longer period as may be reasonably necessary to cure the default.  In the event of any inconsistency between this Section and any similar provision in a Subordination, Non-Disturbance and Attornment Agreement entered into by Tenant and any mortgagee or ground lessor, the provisions of the Subordination, Non-Disturbance and Attornment Agreement shall be controlling.

 

Section 9.4                          Limitations on Obligations of Mortgagees, Ground Lessors and Successors.  Tenant agrees that the holder of a mortgage or ground lease or any successor-in-interest to any of them or to Landlord shall not be (a) bound by any payment of an installment of Base Rent or Additional Rent which may have been made more than thirty (30) days before the due date of such installment, (b) bound by any amendment or modification to this Lease made without the consent of the holder of a mortgage or ground lease or such successor in interest; (c) liable for any previous act or omission of Landlord (or its predecessors in interest) except for any obligations of Landlord to perform maintenance or repairs of a

 

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continuing nature the need for which first arises prior to the time that such holder succeeds to Landlord’s interest under the Lease and which continues after such holder succeeds to Landlord’s interest under this Lease; (d) responsible for any monies owing by Landlord to the credit of Tenant or subject to any credits, offsets, claims, counterclaims, demands or defenses which Tenant may have against Landlord (or any of its predecessors in interest); (e) bound by any covenant to undertake or complete any construction of the Premises or any portion thereof; or (f) obligated to make any payment to Tenant other than any security deposit actually delivered to holder of a mortgage or ground lease or such successor in interest.  Further, Tenant agrees that it will not seek to terminate this Lease by reason of any act or omission of Landlord until Tenant shall have given written notice of such act or omission to the holder of such mortgage or ground lease (at such holder’s last address furnished to Tenant) and following the giving of such notice such holder shall have the right, but shall not be obligated, to remedy such act or omission within the same time period provided for in this Lease for Landlord to cure the same or such longer period as may be reasonably necessary to cure the same.  In the event of any inconsistency between this Section and any similar provision in a Subordination, Non-Disturbance and Attornment Agreement entered into by Tenant and any mortgagee or ground lessor, the provisions of the Subordination, Non-Disturbance and Attornment Agreement shall be controlling.

 

Section 9.5                          Estoppel Certificate By Tenant.  Tenant agrees, at any time and from time to time, within ten (10) Business Days after written request by Landlord or any holder of a mortgage on all or a portion of the Project or the ground lessor thereof, (a) to execute, acknowledge and deliver to Landlord a statement in writing certifying that (except as may be otherwise specified by Tenant): (i) this Lease is presently in full force and effect and unmodified; (ii) Tenant has accepted possession of the Premises; (iii) any improvements required by the terms of this Lease to be made by Landlord have been completed to the satisfaction of Tenant; (iv) no rent under this Lease has been paid more than thirty (30) days in advance of its due date; (v) the addresses for notices to be sent to Tenant is as set forth in this Lease or as specified in such certificate; (vi) Tenant as of the date of executing the certificate has no charge, lien or claim of offset under this Lease, or otherwise, against rents or other charges due or to become due hereunder; (vii) Tenant is not in default under this Lease; (viii) to the best of Tenant’s knowledge, Landlord is not in default of this Lease; and (ix) such other information as Landlord may reasonably request about this Lease or Tenant’s occupancy; and (b) to deliver information in form satisfactory to Landlord and such holder or ground lessor concerning Tenant’s operations as may be found in Tenant’s then-most-recent annual audited financial statement, but only if such recipients agree in writing to keep such information confidential.

 

Section 9.6                          Amendment of Declaration.  Tenant agrees that the Declaration may be amended from time to time without the consent of Tenant, so long as such amendment does not materially adversely affect the use and enjoyment of the Premises by Tenant pursuant to this Lease, materially increase Tenant’s obligations in respect of Additional Rent, or further restrict Tenant’s ability to sublease or assign this Lease.  All references herein to the Declaration shall be references to the Declaration as amended from time to time.  Landlord shall provide Tenant with copies of any future amendments of the Declaration.

 

ARTICLE X
  CASUALTY

 

Section 10.1                   Damage From Casualty.

 

(a)                                 If any portion of the Premises or the Building affecting Tenant’s use of the Premises is damaged by fire or other casualty, Tenant shall give Landlord written notice of such casualty promptly after Tenant becomes aware of such casualty.  Within sixty (60) days after Tenant gives Landlord written notice of such casualty or Landlord otherwise becomes aware of such casualty, Landlord

 

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shall reasonably estimate, and give Tenant written notice of, the period commencing with the date of such notice (the “Restoration Period”) that Landlord anticipates will be reasonably required to perform the restoration work which is the responsibility of Landlord as provided below.  If Landlord reasonably estimates that the Restoration Period will be longer than one year (or if less than one year, longer than the remaining Lease Term), then either Landlord or Tenant may terminate this Lease by giving to the other written notice of termination within ten (10) days after Landlord gives Tenant written notice of such estimate.  Such notice of termination shall be effective on the date thereof, and if Tenant is then occupying the Premises, Tenant shall thereafter have a reasonable period of time in which to vacate the Premises.  If (i) Landlord reasonably estimates that the Restoration Period will be one year or shorter, or (ii) Landlord reasonably estimates that the Restoration Period will be longer than one year but neither Landlord nor Tenant exercises its right to terminate this Lease as set forth above, then this Lease shall not terminate; and in such event, Landlord shall, unless Landlord exercises its termination right pursuant to Section 103, with reasonable dispatch, repair or rebuild so much of the Premises (and Building, as applicable) as were originally constructed by Landlord (or its predecessor) to substantially their condition immediately prior to the casualty (subject, however, to Legal Requirements then in existence), and Tenant shall concurrently (to the extent practical and consistent with good construction practices) (i) repair and restore so much of the Premises as were constructed by Tenant or are the responsibility of Tenant under this Lease and (ii) repair and restore its fixtures and personal property (but only to the extent of the proceeds of insurance carried or required by this Lease to be carried by Tenant).

 

(b)                                 If, pursuant to Section 10.1(a), Landlord is required to restore the Premises (and Building, as applicable) and Landlord fails to substantially complete such restoration by the end of the Restoration Period (subject to extension for delays beyond the reasonable control of Landlord), then Tenant shall have the right to terminate this Lease upon thirty (30) days prior written notice to Landlord.  If Landlord fails to substantially complete such restoration work within such thirty (30) day period, then this Lease shall terminate as of such thirtieth (30th) day.

 

(c)                                  Notwithstanding any other provisions of this Section 10.1 to the contrary, Landlord shall not be obligated to commence repair or restoration work prior to receipt of sufficient insurance proceeds, nor shall Landlord be required to expend sums in excess of “net recovered insurance proceeds”.  The term “net recovered insurance proceeds” shall mean the amount of any insurance proceeds actually recovered by Landlord, less the cost of obtaining the same (including attorneys’ fees and appraisal fees) and less the amount thereof required to be paid to a mortgagee or ground lessor.

 

Section 10.2                   Abatement of Rent.  In the event that the provisions of Section 10.1 shall become applicable, the Base Rent, Tenant’s Project Share of Taxes and Project Operating Costs, and Tenant’s Building Share of Building Operating Costs shall be abated or reduced proportionately for the period in which, by reason of any such damage or destruction, there is substantial interference with the operation of the business of Tenant in the Premises, having regard to the extent to which Tenant may be required to discontinue its business in the Premises, and such abatement or reduction shall continue (but may be adjusted from time to time based on the extent of the interference with Tenant’s operations) for the period commencing with such destruction or damage and ending with the substantial completion by Landlord of such work, repair and/or reconstruction as Landlord is obligated to do if it does not otherwise terminate this Lease pursuant to this Article X.

 

Section 10.3                   Landlord’s Right to Terminate.  Notwithstanding the foregoing, Landlord may terminate this Lease following:  (a) damage or destruction to the Premises to the extent of thirty (30%) or more of the cost of replacement thereof; or (b) the refusal of the applicable insurance carrier to pay funds sufficient for the cost to repair or replace or the refusal of any applicable mortgagee or ground lessor to release the insurance proceeds for such purposes.  Landlord may exercise the right to so terminate this Lease by written notice to Tenant given within sixty (60) days after the date of the damage or sixty (60)

 

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days after the date Landlord receives written notice of such damage, whichever is later.  Such notice of termination shall be effective on the date thereof.

 

ARTICLE XI
  EMINENT DOMAIN

 

Section 11.1                   Eminent Domain; Right to Terminate and Abatement in Rent.  If the Premises or any part thereof, or the whole or any substantial part of the Building, shall be taken, or if a conveyance shall be made in anticipation thereof, for any street or other public use, by action of the municipal, state, federal or other authorities, or shall receive any substantial direct or consequential damage for which Landlord or Tenant shall be entitled to compensation by reason of anything lawfully done in pursuance of any public authority, after the execution hereof and before the expiration of the Lease Term, then this Lease and the Lease Term shall terminate at the election of either party (given by written notice to the other party within ninety (90) days of the taking or within ninety (90) days of notice of the taking to Landlord), and such election may be made in case of any such taking notwithstanding the entire interest of Landlord may have been divested by such taking, and if neither party so elects, then in case of any such taking or destruction of, or damage to, the Premises, rendering the same or any part thereof unfit for use and occupation, a just proportion of the Base Rent and Additional Rent according to the nature and extent of the injury sustained by the Premises as determined by Landlord, shall be suspended or abated until the Premises or, in case of such taking, what may remain thereof, shall have been put in proper condition for use and occupation.  To the extent that the Premises, upon having been put in proper condition for use and occupation are smaller, the Base Rent shall be reduced for the balance of the Lease Term in the same proportion which the reduction in space bears to the original Leasable Square Footage of the Premises.  In the event of a taking of any portion of the Building, Tenant’s Share shall be recomputed.

 

Section 11.2                   Restoration.  If this Lease is not terminated as provided in Section 11.1, Landlord shall apply so much of the available proceeds of the eminent domain award as are required to restore the Project and the Premises to a condition, to the extent practical, substantially the same as that immediately preceding the taking, but subject to zoning laws and building codes then in existence.  If the available proceeds of the eminent domain award are insufficient, in Landlord’s judgment, for that purpose, Landlord shall have no obligation to expend funds in excess of said proceeds and Landlord shall have the right to select which portions of the Project, if any, shall be restored; provided that if Landlord does not elect to restore the Premises, then Tenant may exercise its termination rights as aforesaid.  The term “available proceeds” shall mean the amount of the award paid to Landlord, less cost of obtaining the same (including attorneys’ fees and appraisal fees) and less the amount thereof required to be paid to a mortgagee or ground lessor.  In the event Landlord fails to commence restoration of the Project and/or the Premises within sixty (60) days after the taking and diligently prosecute the same to completion, Tenant shall have the right to terminate the Lease upon sixty (60) days’ prior written notice to Landlord.

 

Section 11.3                   Landlord to Control Eminent Domain Action.  Landlord reserves all rights to compensation for damage to the Premises or any part thereof, or the leasehold hereby created, heretofore accrued or hereafter to accrue, by reason of any taking for public use of the Premises or any portion thereof, or right appurtenant thereto, or privilege or easement in, through, under or over the same, and by way of confirmation of the foregoing Tenant hereby assigns all rights to such damages heretofore accrued or hereafter accruing during the Lease Term to Landlord.  Provided, however, nothing herein contained shall limit Tenant’s right to any separate award for the taking of personal property, moving and other relocation expenses, or other items the payment of which shall not reduce the award payable to Landlord.

 

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ARTICLE XII
  DEFAULT AND REMEDIES

 

Section 12.1                   Event of Default.  As used herein, “Event of Default” shall mean the occurrence and/or existence of any one or more of the following:  (a)(i) Tenant shall fail to pay any installment of Base Rent, Additional Rent or any other amount due under this Lease on or before the date on which the same becomes due and payable, and such failure continues for five (5) days after written notice from Landlord thereof or (ii) Landlord having given the notice specified in the foregoing clause (a)(i) to Tenant twice in any twelve (12) month period, Tenant shall fail, on a third occasion within the twelve (12) months following the giving of the first such notice by Landlord, to pay any installment of Base Rent, Additional Rent or any other amount due under this Lease on or before the date on which the same becomes due and payable; or (b) Tenant shall neglect or fail to perform or observe any of the other covenants or undertakings herein on its part to be performed or observed and such neglect or failure shall continue for thirty (30) days after written notice to Tenant; provided, however, that if the default is other than a default under clause (a) above, or clauses (c) through (i) below, and is such that it cannot be cured within thirty (30) days, but is capable of being cured, such thirty (30) day period shall be extended by up to sixty (60) additional days provided that Tenant commences to cure such default within said thirty (30) day period, continues to do so diligently, and thereafter completes such cure within not more than ninety (90) days following the notice of default; or (c) there is filed by Tenant any case, petition, proceeding or other action under any Bankruptcy Law; or (d) any other proceedings shall be instituted against Tenant under any Bankruptcy Law and not be dismissed within sixty (60) days; or (e) Tenant shall execute an assignment of its property for the benefit of its creditors; or (f) a receiver, custodian or other similar officer for Tenant shall be appointed and not be discharged within sixty (60) days; or (g) the estate hereby created shall be taken by execution or by other process of law and is not redeemed by Tenant within thirty (30) days thereafter; or (h) an assignment or sublease in violation of the terms of this Lease; or (i) any other event constituting an Event of Default under other Sections of this Lease.

 

Section 12.2                   Landlord’s Remedies.

 

(a)                                 Upon the occurrence of an Event of Default, Landlord may, immediately or at any time thereafter (notwithstanding any license or waiver of any former breach or waiver of the benefit hereof, or consent in a former instance), and without further demand or notice, in person or by agent or attorney, enter the Premises or any part thereof and repossess the same as of its former estate, or terminate this Lease by written notice to Tenant, and in either event expel Tenant and those claiming through or under it and remove their effects without being deemed guilty of any manner of trespass and without prejudice to any remedy which might otherwise be used for arrears of Base Rent or Additional Rent or breach of covenant, and upon entry or written notice of termination, or automatic termination, both as aforesaid, this Lease shall terminate and Landlord, in addition to all other remedies which it may have at law or equity, and not in limitation thereof, shall have the remedies provided in this Article XII.

 

(b)                                 If, pursuant to Section 12.2(a), Landlord terminates Tenant’s right of possession of the Premises without terminating this Lease, then Tenant shall pay to Landlord during the remainder of the Lease Term the Base Rent and Additional Rent in installments as and when the same become due and payable, subject to reduction by any rent actually received by Landlord as a result of a re-letting of the Premises (net of the reasonable and customary costs of re-letting, including remodeling costs, brokerage commissions and attorneys’ fees).  Landlord shall exercise commercially reasonable efforts to re-let the Premises to mitigate damages, and Landlord may re-let the Premises or any part or parts thereof, either in the name of Landlord or otherwise for a term or terms which may, at Landlord’s option, be less than or exceed the period which would otherwise have constituted the balance of the Lease Term and may grant concessions or free rent.  The good faith failure of Landlord to re-let the Premises or any part or parts thereof, or, if the Premises are re-let, the good faith failure to collect the rents due under such re-letting,

 

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shall not release or affect Tenant’s liability for damage so long as Landlord does not act arbitrarily or capriciously.  Any suit brought to collect the amount of the deficiency for any month or other period shall not prejudice in any way the right of Landlord to collect the deficiency for any subsequent month or period by a similar proceeding.  Landlord, at Landlord’s option, may make such alterations, repairs, replacements and decorations on the Premises as Landlord in Landlord’s sole but reasonable judgment considers advisable and necessary for the purpose of re-letting the Premises, and the making of such alterations or decorations shall not operate or be construed to release Tenant from liability hereunder.

 

(c)                                  If, pursuant to Section 12.2(a), Landlord terminates this Lease, Tenant shall forthwith pay to Landlord as damages, in addition to all sums which were due prior to the date of such termination, a sum equal to the amount by which the Base Rent and Additional Rent for the remainder of the Lease Term exceeds the fair rental value of the Premises for the remainder of the Lease Term, discounted to present value using a then market rate of interest as reasonably determined by Landlord.  For the purposes of computing damages payable pursuant to this Section 12.2(c), the Additional Rent with respect to Taxes, Insurance Costs and Operating Costs for the remainder of the Lease Term will be assumed to be the product of such Additional Rent for the most recently ended fiscal, calendar or lease year, as the case may be, times the number of years remaining of the Lease Term.

 

(d)                                 Tenant will be responsible to Landlord for all expenses which Landlord may incur in connection with the enforcement of Landlord’s rights after an Event of Default, including, without limitation, reasonable legal expenses, attorneys’ fees, brokerage fees, and the cost of putting the Premises in good order or preparing the same for rental.

 

(e)                                  Tenant shall not be liable for consequential damages under this Lease, except such as arise from a holdover by Tenant.  No Person executing this Lease on behalf of Tenant, nor any officer, director or employee of Tenant, shall have any personal liability hereunder.

 

Section 12.3                   Reimbursement of Landlord.  Upon the occurrence of an Event of Default, Tenant will, in addition to paying Landlord all amounts due under the terms and provisions of this Lease, including, without limitation, Section 12.9, reimburse Landlord for all reasonable expenses incurred by Landlord in collecting such rent or in obtaining possession of, or in re-letting the Premises, or in defending any action, including expenses for reasonable counsel fees and commissions.  Tenant further agrees that, if on termination of this Lease by expiration or otherwise, Tenant shall fail to remove any of its property from the Premises as provided for herein, Landlord shall be authorized, in its sole option, and in Tenant’s name and on its behalf, either (a) to cause such property to be removed and placed in storage for the account and at the expense of Tenant; or (b) to sell such property at public or private sale, with or without notice, and to apply the proceeds thereof, after the payment of all expenses of removal, storage and sale, to the indebtedness, if any, of Tenant to Landlord, the surplus, if any, to be paid to Tenant.  All sums payable by Tenant under this Article XII shall be deemed Additional Rent.

 

Section 12.4                   Landlord’s Right to Perform Tenant’s Covenants.  Tenant covenants and agrees that, if it shall at any time fail to make any payment or perform any other act on its part to be made or performed as in this Lease provided, Landlord, in its sole discretion may after due notice to, or demand upon, Tenant, make any payment or perform any other act on the part of Tenant to be made and performed as in this Lease provided, in such manner and to such extent as Landlord may reasonably deem desirable, and in exercising any such rights, Landlord may pay necessary and incidental costs and expenses, employ counsel, and incur and pay reasonable attorneys’ fees.  The making of any such payment or the performing of any other act by Landlord pursuant to this Article shall not waive, or release Tenant from, any obligations of Tenant in this Lease contained.  All sums so paid by Landlord and all reasonably necessary and incidental costs and expenses in connection with the performance of any such act by Landlord shall, except as otherwise in this Lease expressly provided, be payable to Landlord on

 

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demand, and Tenant covenants to pay any such sum or sums promptly, and Landlord shall have (in addition to any other right or remedy of Landlord) the same rights and remedies in the event of the non-payment thereof by Tenant as in the case of default by Tenant in the payment of the Base Rent.  Whenever practicable, Landlord, before proceeding as provided in this Section, shall give Tenant notice in writing of the failure of Tenant which Landlord proposes to remedy, and shall allow Tenant such length of time as may be reasonable in the circumstances, consistent with any grace periods contained herein, but not exceeding ten (10) Business Days from the giving of notice, to remedy the failure itself and, if Tenant shall not remedy the failure in the time so allowed, Landlord shall be deemed to have given “due notice” and may proceed as provided in this Section; provided, however, that nothing in this Section shall prevent Landlord from acting without notice to Tenant in case of any emergency wherein there is danger to property or person or where there may exist any violation of Legal Requirements including but not limited to the presence of Hazardous Materials, in which event no notice shall be required.

 

Section 12.5                   Cumulative Remedies.  The specified remedies to which Landlord may resort under the terms of this Lease, or under the provisions of applicable law, are cumulative and not intended to be exclusive of any other remedies or means of redress to which Landlord may be lawfully entitled in case of any breach or threatened breach by Tenant of any provisions of this Lease.  The failure of Landlord to insist in any one or more cases upon the strict performance of any of the covenants of this Lease or to exercise any option contained herein shall not be construed as a waiver or a relinquishment for the future of such covenant or option.  Receipt by Landlord of any Base Rent or Additional Rent payment with knowledge of the breach of any covenants hereof shall not be deemed a waiver of such breach.  No waiver by Landlord of any provision of this Lease shall be deemed to have been made unless expressed in writing and signed by it.  In addition to the other remedies provided in this Lease, landlord shall be entitled to restraint by injunction of any violation or attempted or threatened violation of any of the covenants, conditions or provisions of this Lease.

 

Section 12.6                   Expenses of Enforcement.  Tenant agrees to pay all reasonable expenses and reasonable attorneys’ fees incurred by Landlord in enforcing any obligation or any remedies hereunder including, without limitation, in connection with collection of Base Rent or Additional Rent, recovery by Landlord of the Premises, or in any litigation in which Landlord shall become involved by reason of any act or negligence of any of Tenant’s Invitees or any breach of this Lease by Tenant.  Landlord agrees to pay all reasonable expenses and reasonable attorneys’ fees incurred by Tenant in enforcing any obligation or any remedies hereunder including any litigation in which Tenant shall become involved by reason of any act or negligence of Landlord or any breach of this Lease by Landlord.

 

Section 12.7                   Landlord’s Default.  Landlord shall not be deemed to be in default hereunder unless such default shall remain uncured for more than thirty (30) days following written notice from Tenant to Landlord specifying the nature of such default, or such longer period as may be reasonably required to correct such default, provided that Landlord is diligently prosecuting such cure to completion.  In no event whatsoever shall Landlord be liable for consequential or any indirect damages.  The provisions of this Section are further subject to the provisions of Articles X and XI dealing with eminent domain and fire and other casualty, and Section 6.3 dealing with interruption of services.  If Landlord fails to cure any default by Landlord within the period provided above in this Section, Tenant may give Landlord an additional written notice confirming that the default has not been cured and that Tenant intends to cure such default, and, if Landlord fails to cure such default within ten (10) days after such notice, Tenant may, without waiving the default, take such steps as are reasonably appropriate to cure the default, recover from Landlord the reasonable cost of such cure, and, if Landlord concedes, or a court determines, Tenant’s right to recover such cost setoff such cost against the Base Rent and Additional Rent next coming due.  In no event shall Tenant have the right to terminate this Lease by reason of a default by Landlord, except as expressly provided herein.

 

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Section 12.8                   Limitation of Landlord’s Liability.  The obligations of Landlord hereunder shall be binding upon Landlord and each succeeding owner of Landlord’s interest hereunder only during the period of such ownership, and Landlord and each succeeding owner shall have no liability whatsoever except for its obligations during each such respective period.  Tenant hereby agrees for itself and each succeeding holder of Tenant’s interest, or any portion thereof, hereunder, that any judgment, decree or award for money damages obtained against Landlord or any succeeding owner of Landlord’s interest, which is in any manner related to this Lease, the Premises or Tenant’s use and occupancy of the Premises or the Common Areas, or the remainder of the Project, shall be satisfied out of Landlord’s equity in the land and buildings then comprising the Project to the extent then owned by Landlord and such succeeding owner, and further agrees to look only to such assets (or proceeds thereof or interest or profits therefrom) and to no other assets of Landlord, or such succeeding owner, for satisfaction.  Neither Landlord nor any Person executing this Lease on behalf of Landlord, nor any partner, limited or general, or any officer, director employee, member, trustee, beneficiary, or owner of Landlord, nor any subsequent Landlord, or any partner, limited or general, or any officer, director, employee, member, trustee, beneficiary, or owner of any subsequent Landlord shall have any personal liability hereunder.  The remedies provided to Tenant in this Lease are exclusive, and Landlord will not be liable under any theory of recovery, whether based on contract, tort or otherwise.

 

Section 12.9                   Late Payment and Administrative Expense.  If Tenant shall fail to pay Base Rent, Additional Rent or other charges after the same become due and payable under this Lease, such unpaid amounts shall bear interest from the due date thereof to the date of payment at the lesser of (a) a per annum rate equal to three percent (3%) plus the prime rate of Bank of America (or any successor) in effect on the day the payment became due and subject to change thereafter or (b) the maximum rate permitted by applicable law (“Interest Payment”).  In addition, if Landlord is required to redeposit any check which is returned for insufficient funds or if Tenant shall fail to pay Base Rent, Additional Rent or other charges on or before the date on which the same become due and payable, then Tenant shall also pay to Landlord an administrative expense charge (“Administrative Expense”) of five percent (5.0%) of the amount thereof for each calendar month or part thereof after the due date of such payment until such payment is received by Landlord.  The provisions herein for Interest Payment and Administrative Expense shall not be construed to relieve Tenant of the obligation to pay Base Rent, Additional Rent and all other charges when due under this Lease and shall be in addition to and not in limitation of Landlord’s other remedies as provided for in this Lease.  Notwithstanding the foregoing, during each calendar year of the Lease Term, Tenant shall be allowed one (1) grace period during which it shall not be required to pay the Interest Payment or the Administrative Expense provided it pays to Tenant all Base Rent and Additional Rent then due within five (5) days after written notice from Landlord.

 

ARTICLE XIII
  MISCELLANEOUS PROVISIONS

 

Section 13.1                   Brokers.  Each party represents that it has not dealt with any Person in connection with the Premises or the negotiation or execution of this Lease other than officers, employees and attorneys of Landlord and Brokers.  Each party shall indemnify and save harmless the other from and against all claims, liabilities, costs and expenses incurred as a result of any breach of the foregoing representation.  The broker’s fees payable to Brokers for this Lease shall be payable by Landlord subject to and in accordance with the terms of a separate agreement between Landlord and Brokers.

 

Section 13.2                   Quiet Enjoyment.  Tenant shall, upon paying all Base Rent and Additional Rent due hereunder and observing and performing all of the terms, covenants and conditions on Tenant’s part to be observed and performed, peaceably and quietly have and hold the Premises without hindrance or molestation by any Person or Persons lawfully claiming by, through or under, Landlord, subject, however, to the terms of this Lease.

 

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Section 13.3                   Tenant’s Request for Landlord’s Action.  In the event that at Tenant’s request Landlord takes any action which is not required of Landlord pursuant to this Lease, Tenant shall pay as Additional Rent Landlord’s reasonable attorneys’ fees, expenses and disbursements in connection with such action, with payment to be made by Tenant within thirty (30) days after billing therefor by Landlord.  Landlord will give Tenant a good faith estimate of such costs of any such action prior to commencing such action.

 

Section 13.4                   Notices.  Any notice, demand, request or statement required or intended to be given or delivered under the terms of this Lease shall be in writing, shall be addressed to the party to be notified at the address or addresses set forth in the Summary of Basic Terms or at such other address in the continental United States as each party may designate for itself from time to time by notice hereunder, and shall be deemed to have been given, delivered or served upon the earliest of (a) three (3) days following deposit in the U.S. Mail, with proper postage prepaid, certified or registered, return receipt requested, (b) the next business day after delivery to a regularly scheduled overnight delivery carrier with delivery fees either prepaid or an arrangement, satisfactory with such carrier, made for the payment of such fees, or (c) receipt of notice given by telecopy or personal delivery.

 

Section 13.5                   Waiver of Subrogation.  Landlord and Tenant hereby release each other, to the extent of their respective insurance coverages, from any and all liability for any loss or damage caused by fire, any of the extended coverage casualties, or other casualties insured against, even if such fire or other casualty shall be brought about by the fault or negligence of the party benefited by the release or its agents, provided, however, this release shall be in force and effect only with respect to loss or damage occurring during such time as the policies of fire, extended coverage and other insurance, maintained by the releasing party shall contain a clause, or be subject to a statutory provision, to the effect that such release shall not affect said policies or the right of the releasing party to recover thereunder.  Each party agrees that its fire, extended coverage, and other insurance policies will include such a clause.  To the extent that Tenant is a self-insurer with respect to personal property, the provisions of Section 7.8 shall be applicable.

 

Section 13.6                   Entire Agreement; Execution; Time of the Essence and Headings and Table of Contents.  This Lease together with all Exhibits referred to herein and the Summary of Basic Terms, sets forth the entire agreement between the parties hereto and cannot be modified or amended, except in a writing duly executed by the respective parties.  This Lease, together with all Exhibits referred to herein and the Summary of Basic Terms, supersedes all previous written and oral negotiations, understandings and agreements regarding the subject matter of this Lease.  Neither Landlord nor any Person acting on behalf of Landlord has made any representations to Tenant on which Tenant has relied in entering into this Lease except any representations expressly stated in this Lease.  This Lease is executed as a sealed instrument and in multiple counterparts, all copies of which are identical, and any one of which is to be deemed to be complete in itself and may be introduced in evidence or used for any purpose without the production of any other copy.  Time is of the essence with respect to the obligations of Tenant and Landlord to be performed within a specific time frame in this Lease.  The headings throughout this Lease and the Table of Contents are for convenience of reference only, and shall in no way be held or deemed to define, limit, explain, describe, modify or add to the interpretation, construction or meaning of any provision of this Lease.

 

Section 13.7                   Partial Invalidity.  If any term or condition of this Lease or its application to any Person or circumstance shall to any extent be in violation of or unenforceable under any law, rule, regulation or order (including any court order) now existing or hereafter enacted or entered by any court or other governmental entity having competent jurisdiction (including after all appeals therefrom), the remainder of this Lease, or the application of such term or condition to Persons or circumstances other

 

37

 

than those as to which it is invalid or unenforceable, shall not be affected thereby and shall be enforceable to the fullest extent not prohibited by law.

 

Section 13.8                   No Waiver.  No assent, express or implied, by Landlord to any breach of any agreement or condition herein contained on the part of Tenant to be performed or observed, and no waiver, express or implied, of any such agreement or condition shall be deemed to be a waiver of or an assent to any succeeding breach of the same or any other agreement or condition; the acceptance by Landlord of Base Rent or Additional Rent due hereunder (whether such payment is made by Tenant or another Person), or silence by Landlord as to any breach, shall not be construed as waiving any of Landlord’s rights hereunder unless such waiver shall be in writing.  No payment by Tenant or acceptance by Landlord of a lesser amount than shall be due Landlord from Tenant shall be deemed to be anything but payment on account, and the acceptance by Landlord of a check for a lesser amount with an endorsement or statement thereon, or upon a letter accompanying said check, that said lesser amount is payment in full shall not be deemed an accord and satisfaction, and Landlord may accept said check without prejudice to recover the balance due or pursue any other remedy.

 

Section 13.9                   Holdover.  If Tenant remains in the Premises beyond the expiration of this Lease at the end of the Lease Term, or sooner following an early termination as provided for herein, such holding over shall not be deemed to create any tenancy, but Tenant shall be a daily Tenant at sufferance only subject to all of Tenant’s obligations set forth herein, but at a Base Rent equal to one and one-half (11⁄2) times the Base Rent then most recently in effect and Additional Rent and other charges provided for under this Lease, with such Base Rent and Additional Rent to be charged on a monthly basis for each calendar month or portion thereof for which Tenant holds over, without proration for a partial calendar month.  The acceptance of a purported rent check following termination shall not constitute the creation of a tenancy at will, it being agreed that Tenant’s status shall remain that of a daily Tenant at sufferance, at the aforesaid daily rate Tenant shall also pay to Landlord all damages, if any, sustained by reason of any such holding over.  Otherwise, such holding over shall be on the terms and conditions set forth in this Lease as far as applicable.

 

Section 13.10            When Lease Becomes Binding.  The submission of this document for examination and negotiation does not constitute an offer to lease or a reservation or an option for the Premises, and this document shall become effective and binding only upon the execution and delivery hereof by both Landlord and Tenant and the making of one-half of the Security Deposit by Tenant with Landlord in accordance with Section 2.5.  All negotiations, considerations, representations and understandings between Landlord and Tenant are incorporated herein and may be modified or altered only by agreement in writing between Landlord and Tenant, and no act or omission of any employee or agent of Landlord shall alter, change or modify any of the provisions hereof.

 

Section 13.11            Recordation.  Tenant shall not record this Lease with any registry of deeds or land court, and any such recordation will be void and constitute an Event of Default under this Lease.

 

Section 13.12            Financial Statements; Certain Representations and Warranties of Tenant.  No more than once per year, if requested by Landlord, Tenant shall provide to Landlord, any actual or potential mortgagee and any actual or potential ground lessor or any representative of any of the foregoing, copies of Tenant’s annual audited financial statements.  Tenant represents and warrants to Landlord, its successors and assigns that: (a) all financial statements of Tenant previously provided to Landlord (or available to Landlord on Tenant’s web site) have been prepared in accordance with GAAP (except for footnotes), were true, complete and correct as of their respective dates and fairly and accurately reflect the financial condition of Tenant; (b) there has been no material adverse change in the financial condition of Tenant subsequent to the date(s) of such financial statements; (c) all financial statements of Tenant as required to be provided to Landlord under this Section 13.12 after the dale hereof

 

38

 

(or available to Landlord on Tenant’s web site) will be prepared in accordance with GAAP (except for footnotes), will be true, complete and correct as of their respective dates and will fairly and accurately reflect the financial conditions of the Tenant; (d) Tenant is a corporation organized and existing in good standing under the laws of the State of Delaware and is authorized to transact business in the Commonwealth of Massachusetts; (e) the execution, delivery and performance of this Lease by Tenant has been duly authorized; and (f) this Lease is valid and binding upon the Tenant and is enforceable against Tenant in accordance with the terms hereof.

 

Section 13.13            Confidentiality.  Tenant acknowledges that the terms under which Landlord has leased the Premises to Tenant, (including, without limitation, the rental rate(s), term and other financial and business terms, constitute confidential information of Landlord (“Landlord’s Confidential Information”).  Tenant covenants and agrees to keep Landlord’s Confidential Information confidential; provided, however, that (a) Landlord’s Confidential Information may be disclosed by Tenant to those of its stockholders, officers, employees, attorneys, accountants, lenders and financial advisors (collectively, “representatives”) who need to know such information in connection with Tenant’s lease, use and occupancy of the Premises and for financial reporting and credit related activities and in connection with a merger or sale of Tenant or substantially all of the assets of Tenant (it being understood that Tenant shall inform the representatives of the confidential nature of Landlord’s Confidential Information and that the representatives shall be directed by Tenant to treat Landlord’s Confidential Information confidentially in accordance with the terms of this Section), and (b) unless required by applicable law, any other disclosure of such information may only be made if Landlord consents in writing prior to any such disclosure.  Landlord acknowledges that, in connection with this Lease, Tenant is furnishing to Landlord information regarding Tenant and Tenant’s operations which is not a matter of public record and is not generally available to the public (“Tenant’s Confidential Information”).  Landlord covenants and agrees to keep Tenant’s Confidential Information confidential; provided, however, that (a) Tenant’s Confidential Information may be disclosed by Landlord to Landlord’s representatives who need to know such information in connection with Landlord’s business (it being understood that Landlord shall inform the representatives of the confidential nature of Tenant’s Confidential Information and that the representatives shall be directed by Landlord to treat Tenant’s Confidential Information confidentially in accordance with the terms of this Section), and (b) unless required by applicable law, any other disclosure of such information may only be made if Tenant consents in writing prior to any such disclosure.

 

Section 13.14            Summary of Basic Terms.  The Summary of Basic Terms which is affixed to this Lease sets forth certain basic terms and information which is thereafter referred to in the main text of this Lease.  Every reference to the Summary of Basic Terms, or to a particular item thereon, shall have the effect of incorporating the Summary, or the particular item thereof, into the main text of this Lease.

 

[Signature Page Follows]

 

39

 

Tenant and Landlord, each by its duly authorized officer, have signed this Lease as of the date first set forth above.

 

	
 
    	
TENANT:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
GENOCEA   BIOSCIENCES, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert Farrell Jr.
    
	
 
    	
Name:
    	
Robert   Farrell Jr.
    
	
 
    	
Title:
    	
VP   Finance & Admin
    
	
 
    	
 
    	
Duly   Authorized
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
LANDLORD:
    
	
 
    	
 
    	
 
    
	
 
    	
TBCI,   LLC, as Trustee of 100 Discovery Park Realty Trust
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert A. Schlager
    
	
 
    	
Name:
    	
Robert   A. Schlager
    
	
 
    	
Title:
    	
Treasurer   of
    
	
 
    	
 
    	
Duly   Authorized
    
				

 

 

EXHIBIT A-1

 

PROPERTY DESCRIPTION (PROJECT)

 

 

EXHIBIT A-I

 

Building 35 Property Parcel 1/Lot 1 on the Survey

 

Four contiguous parcels of Land (the last two being registered land) situated on the Northerly side of said Acorn Park as follows:

 

PARCEL 1

 

SOUTHERLY: by Acorn Park by three lines measuring respectively 121.70 feet, 205.26 feet and 98.84 feet;

 

WESTERLY: by land of Marshall B. Dalton and others, trustees, 193.45 feet;

 

NORTHERLY: by Lot Y4 as shown on the plan hereinafter mentioned by two lines measuring respectively 119 feet and 15.48 feet;

 

NORTHEASTERLY: 45.38 FEET;

 

NORTHWESTERLY: again, 295.58 feet, said last two lines being along land of Marshall B. Dalton and others, Trustees, shown on said plan as a parcel containing 7,001 square feet, and being the Parcel 2 herein described;

 

NORTHERLY: again, by Lot 337 as shown on said plan, 37.27 feet; and

 

EASTERLY: by land now or late of New England Mutual Life Insurance Company, 329.27 feet.

 

Said parcel is shown on a “Plan of Land in Cambridge and Arlington, Massachusetts”, dated Aug. 17, 1958, by William S. Crocker, Inc., Civil Engineers, recorded with said Deeds as Plan No. 251 of 1957, in Book 8915, Page 81, and the same contains according to said Plan 119,627 square feet.

 

Excepting that portion of Lot 1 designated as “Proposed Building 100 Ground Lease Area” as shown on a plan entitled “Cambridge Discovery Park in Cambridge, Massachusetts - Building 100 Ground Lease Plan”, prepared by BSC Group, Inc., dated February 7, 2005, a copy of which is attached to the Notice of Lease dated March 22, 2005, between BHX, LLC, as Trustee of Acorn Park Holdings Realty Trust, as landlord, and BHX, LLC, as Trustee of 100 Discovery Park Realty Trust, as tenant, which was recorded with the Middlesex South Registry of Deeds on March 31, 2005 as Instrument No. 83766, and filed with the Middlesex South Registry District of the Land Court as Document No. 1369427.

 

PARCEL 2/Lot 2 on the Survey

 

SOUTHWESTERLY: 45.38 feet;

 

SOUTHEASTERLY: 295.58 feet; said last two lines being along land now or formerly of Marshall B. Dalton and others, Trustees, shown on said plan as land of West Cambridge Trust, and being the First Parcel herein described;

 

NORTHERLY: by Lot 342 as shown on Land Court Subdivision Plan 4351z, being Parcel 3 herein described, by two lines measuring respectively 60.73 feet and 123.34 feet;

 

NORTHWESTERLY: by Lot 340 as shown on Land Court Subdivision Plan 4351 Y, being Parcel 4 herein described, 81.98 feet;

 

 

NORTHWESTERLY: more WESTERLY by Lot Y3 as shown on Land Court Subdivision Plan 4351x, 64.19 feet;

 

Said parcel shown on said plan dated August 17, 1956 as the parcel containing 7001 square feet.

 

PARCEL 3/Lot 3 on the Survey

 

NORTHERLY: on land now or late of Bolton, being Lot 341 on Land Court Subdivision Plan 4351z, 236.14 feet;

 

SOUTHERLY: by what was known as the Northerly line of Alewife Brook Parkway, being Parcel 2 herein described, by two lines measuring respectively 60.73 feet and 123.34 feet; and

 

SOUTHWESTERLY: by Lot 340 as shown on said Plan, being Parcel 4 herein described, 61.13 feet.

 

Said parcel is shown as Lot 342 on said Subdivision Plan 4351z, filed in the South Registry District of Middlesex County with Certificate of Title No. 97885 and comprises the premises described in said Certificate of Title.

 

PARCEL 4/Lot 4 on the Survey

 

SOUTHERLY: by what was known as the Northerly line of Alewife Brook Parkway, being Parcel 2 herein described, 81.98 feet;

 

NORTHWESTERLY: Lots Y3 and Y2 as shown on Plan hereinafter mentioned, 54.61 feet; and

 

NORTHEASTERLY: by Lot 339 on said Plan, a portion of which comprises Parcel 3 herein described 61.13 feet.

 

Said parcel is shown as Lot 340 on Subdivision Plan 4351y filed in said Registry District with Certificate of Title No. 93873, and comprises the premises described in said Certificate of Title.

 

The aforesaid four contiguous parcels are shown as Lot 1 containing 119, 627± square feet; Lot 2 containing 7,001± square feet; Lot 3 containing 2,912± square feet; and Lot 4 containing 1.634± square feet respectively on a plan entitled “Plan of Land in Arlington, Belmont and Cambridge, Massachusetts prepared for Arthur D. Little, Inc. by Boston Survey Consultants” dated October 31, 1978 and recorded with the Middlesex South Registry of Deeds as Plan No. 338 of 1978 In Book 13674, Page End (the “Master Plan”).

 

Buildings 20, 20A and 32 Property

 

PARCEL 5/Lot 7 on the Survey

 

A certain parcel of land situated on the Southerly and Easterly sides of Acorn Park and at the Southeasterly corner of Acorn Park and Concord Turnpike, partly in Cambridge and partly in Arlington, both in Middlesex County, Massachusetts, with the buildings thereon situated and bounded as described as follows:

 

NORTHERLY: by Acorn Park by three lines measuring respectively 39.63 feet, 209.61 feet and 289.03 feet;

 

WESTERLY: by said Acorn Park by two lines measuring respectively 309.53 feet and 63.35 feet;

 

 

NORTHWESTERLY: on the junction of Acorn Park and Concord Turnpike by a curved line having a radius of 30 feet, 50.79 feet;

 

NORTHERLY: again, on Concord Turnpike 39.67 feet,

 

SOUTHERLY: by land of the Commonwealth of Massachusetts, 66.17 feet;

 

EASTERLY: by the same land by two lines measuring respectively about 390 feet and 225.70 feet;

 

SOUTHERLY: again, by the same land, by three lines measuring respectively 239.60 feet, 282.46 feet, and 58.57 feet;

 

WESTERLY: again, by land now or late of Kingman and others, Trustees, 113.12 feet;

 

NORTHERLY: by land late of New England Mutual Life Insurance Company, 159.96 feet; and

 

WESTERLY: again, by the same land, 125 feet.

 

Said premises comprise a portion of the premises shown on the following three plans; one dated May 4, 1953, by William S. Crocker, Civil Engineer, recorded with Middlesex South District Deeds, Book 8110, Page 322, as Plan #1334 of 1953; one dated August 17, 1956, by William S. Crocker, Inc. Civil Engineer, recorded with said Deeds, Book 8915, Page 81, as Plan #251 of 1957; and one dated December 10, 1959, by William S. Crocker, Inc., recorded with said Deeds, Book 9608, Page 81, as Plan #843 of 1960, and said premises contain according to said plans about 125,497 square feet.

 

The aforesaid parcel is shown as Lot 7 containing 125,504± square feet on the Master Plan.

 

Building 25 Property

 

PARCEL 6/Lot 12 on the Survey

 

A certain parcel of land with the buildings thereon situated on the Northerly side of Acorn Park, in Cambridge, Middlesex County, Massachusetts, bounded and described as follows:

 

SOUTHERLY: by Acorn Park by two lines measuring respectively 52.86 feet and 77.15 feet,

 

WESTERLY: by land now or formerly of New England Mutual Life Insurance Company 126.34 feet;

 

NORTHERLY: by the same land, 130 feet; and

 

EASTERLY:  by the same land, 125 feet.

 

Said premises are shown on a plan marked “Plan of Land in Cambridge, Mass.” dated Dec. 10, 1959, Revised Feb. 26, 1960, by William S. Crocker, Inc., recorded with Middlesex South District Deeds, Book 9608, Page 67, and contain according to said plan, 16,285 square feet

 

The aforesaid parcel is shown as Lot 12 containing 16,285+ square feet on the Master Plan.

 

Three parcels of land situated on either side of Acorn Park (the first two of said parcels are contiguous) bounded and described as follows:

 

 

PARCEL 7/Lot 13 on the Survey

 

A certain parcel of land with the buildings thereon situated on Concord Turnpike and on Acorn Park, partly in Cambridge and partly in Arlington, both Middlesex County, Massachusetts, bounded and described as follows:

 

NORTHERLY: on Concord Turnpike, 1.83 feet;

 

NORTHEASTERLY: on the junction of Concord Turnpike and Acorn Park by a curved line having a radius of 30 feet measuring 43.45 feet;

 

EASTERLY: on Acorn Park 327.98 feet;

 

SOUTHEASTERLY: on the same by a curved line having a radius of 30 feet measuring 39.41 feet;

 

SOUTHERLY: on the same 323.47 feet;

 

WESTERLY: on other land now or formerly of Gerald W. Blakeley, Jr. et als, Trustees, 329.27 feet;

 

NORTHERLY: on registered land of now or formerly Marshall B. Dalton and others, Trustees, being Lot 337 as shown on Land Court Subdivision Plan 4351 W and a part of Lot F as shown on Land Court, Subdivision Plan 4351 L, by two lines measuring respectively 336.51 feet and 99.75 feet; and

 

WESTERLY: on the same land 43.45 feet.

 

Said parcel is shown on a plan designated “West Cambridge Industrial Center, Arlington and Cambridge, Mass.” dated May 4, 1953, by William S. Crocker, Civil Engineer, recorded with said Deeds in Book 8110, Page 322, as Plan No. 1334 of 1953, and contains according to said plan, 135,000 square feet.

 

Excluded from said Parcel 7 hereinabove described Is a certain parcel of land with the buildings thereon situated on the Southerly side of Acorn Park, in Cambridge, Middlesex County, Massachusetts, bounded and described as follows (and being shown as Lot 12 on the survey).

 

SOUTHERLY: by Acorn Park by two lines measuring respectively 52.86 feet and 77.15 feet;

 

WESTERLY: by land now or formerly of New England Mutual Life insurance Company 126.34 feet;

 

NORTHERLY: by the same land, 130 feet: and

 

EASTERLY: by the same land, 125 feet.

 

Said premises are shown on a plan marked, “Plan of Land in Cambridge, Mass.” dated Dec. 10, 1959, Revised Feb 26, 1960, by William S. Crocker, Inc., recorded with Middlesex South District Deeds, Book 9608, Page 67, and contain according to said plan 16,285 square feet.

 

PARCEL 8/Lot 14 on the Survey

 

A parcel of land with the buildings thereon situated on Concord Turnpike, partly in Arlington and partly in Cambridge both in Middlesex County, Massachusetts, bounded and described as follows:

 

NORTHEASTERLY: by the Southwesterly line of Concord Turnpike, 408.79 feet,

 

 

EASTERLY: by land formerly of Herbert F. Allen and now of New England Mutual Life Insurance Company, 43.45 feet;

 

SOUTHERLY: by what was formerly land of the Commonwealth of Massachusetts and in part land now or formerly of said New England Mutual Life insurance Company and land now or formerly of Gerald W. Blakeley, Jr and others Trustees, 473.53 feet; and

 

NORTHWESTERLY: by lot 338 as shown on the plan hereinafter mentioned, 222 feet.

 

Said parcel is shown as Lot 337 on said plan.

 

All of said boundaries are determined by the Land Court to be located as shown on a subdivision plan, as approved by the Land Court, filed in the Land Registration Office, a copy of a portion of which numbered 4351W is filed in the South Registry District of Middlesex County with Certificate of Title No. 81357 in Registration Book 537, Page 7, being the same premises described in Certificate of Title No. 81357 in said Registry District.

 

PARCEL 9/Lot 15 on the Survey

 

A parcel of land situated on the Southerly side of Acorn Park in Cambridge, Middlesex County, Massachusetts, bounded and described as follows:

 

NORTHERLY: by Acorn Park, 160 feet;

 

EASTERLY: by other land now or formerly of Marshall B. Dalton et al, Trustees, 125 feet;

 

SOUTHERLY: by the same land, 159.96 feet; and

 

WESTERLY: by land now or late of Kingman and others Trustees 125 feet.

 

Said premises are shown on a plan marked “Plan of Land in Cambridge, Mass.” dated Dec. 10, 1959, by William S. Crocker, Inc. recorded with said Deeds in Book 9608, Page 81, as plan 843 of 1960 and contain 19,189± square feet according to said plan.

 

The aforesaid three parcels are shown as Lot 13 containing 118,715± square feet Lot 14 containing 49,972+ square feet; and Lot 15 containing 19,189+ square feet, respectively on the Master Plan.

 

Two contiguous parcels of land situated on the Southerly side of Acorn Park in Cambridge, Middlesex County, Mass., bounded and described as follows:

 

PARCEL 10/Lot 5 on the Survey

 

A parcel of land on the Southerly side of Acorn Park (formerly called Burton Street) in said Cambridge shown on Plan of West Cambridge Industrial Center, Arlington and Cambridge, Massachusetts, dated May 4, 1953 by William S. Crocker, Civil Engineer, said Plan being recorded with said Deeds Book 8110, Page 322, bounded and described as follows:

 

NORTHERLY: on Acorn Park (as laid out and shown on said Plan which layout has since been changed Northerly of its location on said Plan) 91.35 feet.

 

EASTERLY: on land now or formerly of Eugene A. Kingman, et al Trustees 219.72 feet;

 

 

SOUTHERLY:  on land of the Commonwealth of Massachusetts, 91.43 feet; and

 

WESTERLY: on the same 218.82 feet.

 

Containing according to said Plan 19,950 feet.

 

PARCEL 11/Lot 6 on the Survey

 

A parcel of land in said Cambridge bounded and described as follows:

 

Beginning at a point in the western end of Acorn Park, thence running by a line in Acorn Park as now laid out south 89° 26’ 46” East a distance of 85.15 feet;

 

thence about easterly by a curved line with a radius of 2168.28 feet, by a line in Acorn Park, as now laid out, a distance of 209.61 feet;

 

thence turning and running southwesterly by the southeasterly line of Acorn Park, as now laid out and by land now or formerly of Marshall B. Dalton et als, Trustees, a distance of 287.36 feet

 

thence turning and running north 16° 22’ 16” west by land now or formerly of the Commonwealth of Massachusetts and the end of Acorn Park as now laid out, a distance of 38.10 feet to the point of beginning.

 

Said parcel is shown on plan designated “Plan of Land in Cambridge, Massachusetts” August 17, 1956, by William S. Crocker, Inc., Civil Engineer, recorded with said Deeds, Book 8915, Page 81 and contains according to said Plan, 3,727 square feet

 

Excluded however, from Parcel 11 hereinabove described is a portion of which is bounded and described as follows:

 

A triangular parcel of land situated on the Southerly side of said Acorn Park bounded and described as follows:

 

NORTHEASTERLY: by said Acorn Park, 199.84 feet

 

SOUTHERLY: by a lot containing 18,016 square feet of land on a plan hereinbelow referred to, being land now or formerly of Marshal B. Dalton et als, Trustees, 195.99 feet; and

 

WESTERLY: by the remainder of the second parcel above described being a lot containing 2,541 square feet shown on the plan hereinafter mentioned, 18.40 feet.

 

Said parcel is shown on a plan entitled “Plan of Land in Cambridge, Mass.” dated Dec. 10, 1959 by William S. Crocker, Inc. recorded with said Deeds Book 9608, Page 81 and containing according to said plan, 1,179 square feet more or less.

 

The aforesaid parcels 10 and 11 are shown as Lot 5 containing 19,950 square feet and Lot 6 containing 2,541 + square feet respectively on the Master Plan.

 

PARCEL 12/Lot 8 on the Survey

 

SOUTHEASTERLY: by land now or formerly of the Commonwealth of Massachusetts — Metropolitan District Commission — Alewife Brook Parkway, 460.82, feet;

 

 

SOUTHERLY: by Lot 1 as shown on plan hereinafter mentioned 120.64 feet;

 

WESTERLY: by land now or formerly of Lancaster H. Heustis, 637.31 feet; and

 

NORTHEASTERLY: by land now or formerly of First National Stores, Inc. and of Franklin Wyman et al., 712.37 feet.

 

Said parcel is shown as Lot 2 on said Plan (Land Court Plan No. 25650B).

 

All of said boundaries are determined by the Court to be located as shown on a subdivision plan, as approved by the Court, filed in the Land Registration Office, a copy of which is filed in the Registry of Deeds for the South Registry District of Middlesex County in Registration Book 592, Page 155, which Certificate 92505.

 

Excepting that portion of Lot 8 designated as “Proposed Building 100 Ground Lease Area” as shown on a plan entitled “Cambridge Discovery Park in Cambridge, Massachusetts - Building 100 Ground Lease Plan”, prepared by BSC Group, Inc., dated February 7, 2005, a copy of which is attached to the Notice of Lease dated March 22, 2005, between BHX, LLC, as Trustee of Acorn Park Holdings Realty Trust, as landlord, and BHX, LLC, as Trustee of 100 Discovery Park Realty Trust, as tenant, which was recorded with the Middlesex South Registry of Deeds on March 31, 2005 as Instrument No. 63766, and filed with the Middlesex South Registry District of the Land Court as Document No. 1369427.

 

PARCEL 13/Lot 9 on the Survey

 

SOUTHERLY: by the Northerly line of Alewife Brook Parkway, 134.48 feet;

 

SOUTHWESTERLY: by land now or formerly of Henry O. Cushman, 111.64 feet;

 

NORTHWESTERLY: by lot P as shown on plan hereinafter mentioned, 57.83 feet; and

 

NORTHEASTERLY: by lot Y3 on said plan.

 

Said parcel is shown as Lot Y4 on said plan (Land Court Plan No. 4351X).

 

Excepting that portion of Lot 9 designated as “Proposed Building 100 Ground Lease Area” as shown on a plan entitled “Cambridge Discovery Park In Cambridge, Massachusetts - Building 100 Ground Lease Plan”, prepared by BSC Group, Inc., dated February 7, 2005, a copy of which is attached to the Notice of Lease dated March 22, 2005, between BHX, LLC, as Trustee of Acorn Park Holdings Realty Trust, as landlord, and BHX, LLC, as Trustee of 100 Discovery Park Realty Trust, as tenant, which was recorded with the Middlesex South Registry of Deeds on March 31, 2005 as Instrument No. 63766, and filed with the Middlesex South Registry District of the Land Court as Document No. 1369427.

 

Together with the right to use the right of way over a strip of said Lot Y3 twenty feet in width located along the southerly and southeasterly boundary of said Lot Y-3 so as to permit ingress to and egress from said Lot Y-4 over the twenty foot right of way leading from Lot Y-3 to the Concord Turnpike, as set forth in Document No. 280072, and shown on Land Court Plan No. 4351X.

 

PARCEL 14/Lot 10 on the Survey

 

SOUTHERLY: by the Northerly line of Alewife Brook Parkway 64.19 feet;

 

SOUTHWESTERLY: by Lot Y4 as shown on said plan hereinafter mentioned, 195.60 feet;

 

 

NORTHWESTERLY: by Lot P on said plan, 100 feet;

 

NORTHEASTERLY: by Lot W and X1 on said plan, 160.98 feet,

 

SOUTHEASTERLY: 25 feet;

 

NORTHEASTERLY: 80 feet, by Lot Y2 on said plan; and

 

SOUTHEASTERLY: by Lot 338 on said plan, 29.61 feet.

 

Said parcel is shown as Lot Y3 on said plan.  (Plan No 4351x).

 

All of said boundaries are determined by the Court to be located as shown on a subdivision plan, as approved by the Court, filed in the land Registration Office, a copy of which is filed in the Registry of Deeds for the South Registry District of Middlesex County in Registration Book 537, Page 6, with Certificate 81356.

 

The right and easement, appurtenant to the above-described premises (Lot Y3on Land Court Plan No. 4351 X) to use the right of way over the twenty foot way leading from Lot Y-3 to the Concord Turnpike as set forth in Document No. 255039 and shown on Plan No 4351 U.

 

PARCEL 15/Lot 11 on the Survey

 

That parcel beginning at a point in Cambridge in the Westerly boundary of land now or late of Gerald W. Blakeley, Jr., et al, Trustees, distant 193.45 feet on bearing south 16°22’16” East from the easterly corner of land now or late of Marshall B.  Dalton, et al, Trustees (Land Court Case No. 25650);

 

Thence running north 89°26’46” west by land now or formerly of the Commonwealth of Massachusetts a distance of 478.21 feet to land now or later of said Dalton, et al, trustees;

 

Thence turning and running in a northeasterly direction by a line with a radius of 5453.83 feet, a distance of 383.87 feet to a point;

 

Thence turning slightly and running north 65°11’23” east a distance of 76.95 feet to a point;

 

Thence turning and running south 16°22’16” east, a distance of 193.45 feet to the point of beginning, containing 42,868 square feet according to said plan.

 

Excepting that portion of Lot 11 designated as “Proposed Building 100 Ground Lease Area” as shown on a plan entitled “Cambridge Discovery Park in Cambridge, Massachusetts - Building 100 Ground Lease Plan”, prepared by BSC Group, Inc., dated February 7, 2005, a copy of which is attached to the Notice of Lease dated March 22, 2005, between BHX, LLC, as Trustee of Acorn Park Holdings Realty Trust, as landlord, and BMX, LLC, as Trustee of 100 Discovery Park Realty Trust, as tenant, which was recorded with the Middlesex South Registry of Deeds on March 31, 2005 as Instrument No. 63766, and filed with the Middlesex South Registry District of the Land Court as Document No. 1369427.

 

PARCEL 16/Lot X1 on the Survey

 

That certain parcel of land situated in Cambridge in the County of Middlesex and said Commonwealth, bounded and deserted as follows:

 

SOUTHEASTERLY: by Lot F as shown on plan hereinafter mentioned, 135 feet;

 

 

SOUTHWESTERLY: 80 feet; and

 

SOUTHEASTERLY: 15 feet, by Lot X-2 on said plan;

 

SOUTHWESTERLY: by Lot Y-1 on said plan, 90 feet;

 

NORTHWESTERLY: by Lot W on said plan, 150 feet; and

 

NORTHEASTERLY: by Lots R and Q on said plan, 170 feet.

 

Said parcel is shown as Lot X-1 on said plan.

 

All of said boundaries are determined by the Court to be located as shown on a subdivision plan, as approved by the Court, filed in the land Registration Office, a copy of which is filed in the Registry of Deeds for the South Registry District of Middlesex County in Registration Book 530, Page 158, with Certificate 80108 (Plan 4351V).

 

Together with the right to use the right of way twenty feet wide and one hundred eight feet long extending northwesterly from the said premises to the State Highway as shown on Land Court Plan 4351V in common with others entitled thereto, for all purposes for which private ways are commonly used in the City of Cambridge.

 

PARCEL 17/Lot W on the Survey

 

Also another certain parcel of land situated in said Cambridge, bounded and described as follows:

 

SOUTHWESTERLY: by Lot Y as shown on plan hereinafter mentioned, 70.98 feet;

 

NORTHWESTERLY: by Lot P on said Plan, 150 feet;

 

NORTHEASTERLY: by Lot Ron said plan, 70.98 feet; and

 

SOUTHEASTERLY: by Lot X on said plan, 150 feet.

 

Said parcel is shown as Lot W on said plan.

 

All of said boundaries are determined by the Court to be located as shown on a subdivision plan, as approved by the Court, filed in the land Registration Office, a copy of which is filed in the Registry of Deeds for the South Registry District of Middlesex County in Registration Book 495, Page 381, with Certificate 74199 (Plan 4351 U).

 

PARCEL 18/Acorn Park Drive

 

The right and easement, appurtenant to Parcels 1-17, inclusive, and Parcels 19, 20 and 22, described in this Exhibit A, to use that portion of Acorn Park Road, owned by AP Cambridge Partners II LLC and located partly in Cambridge and partly in Belmont for access to and from Frontage Road A (a public way) to and from the insured premises on foot and by vehicle and for all purposes for which streets may be used in Cambridge and Belmont, for utilities and for flowage all as set forth in and in accordance with the terms and conditions of that certain document entitled “Declaration, Amendment and Restatement of Easements”, dated November 17, 2000 and filed as Document No. 1155607, and recorded on November 17, 2000 in Book 32042, Page 496.

 

 

PARCEL 19/No. 243 Concord Turnpike

 

All that certain tract or parcel of land with the improvements thereon lying, situate and being in Middlesex County, Massachusetts and being more particularly described as follows:

 

A certain parcel of land situate on the State Highway, sometimes called the Concord Turnpike, in said Cambridge, bounded and described as follows:

 

NORTHEASTERLY: on said State Highway, two hundred (200) feet;

 

NORTHWESTERLY: on the boundary line between Cambridge and Belmont, three hundred and twenty (320) feet more or less;

 

SOUTHWESTERLY: on the brook, two hundred and fifty-three (253) feet more or less; and

 

SOUTHEASTERLY: on land now or late of Dutchland Farms, Inc., three hundred and forty (340) feet more or less; containing one and 68/100 (1 68/100) acres and being shown as Lot C on a plan by Fred A. Joyce, Surveyor, dated November 9, 1936, and recorded with the Middlesex South Registry of Deeds in Book 6079, Page 253.

 

PARCEL 20/Lot 16 on the Survey

 

A parcel of land situate in the City of Cambridge, County of Middlesex, Commonwealth of Massachusetts and more particularly bounded as follows:

 

SOUTHERLY: by Lot No. 6, 189.42 feet;

 

SOUTHWESTERLY: by the same, 424.14 feet;

 

WESTERLY: by the same, 208.10 feet:

 

NORTHWESTERLY: by the same, 318.00 feet;

 

NORTHEASTERLY: by Lot No. 243, 253.94 feet.

 

NORTHERLY: by land now or formerly Ferdinand F. Martignetti, et al, 78.77 feet; and

 

EASTERLY: by Lot No 2, 633.29 feet.

 

Said parcel is shown as Lot 5 on that certain subdivision plan entitled “Land Court Subdivision Plan of Land in Cambridge/Belmont Massachusetts Middlesex County October 24, 2000”, and prepared by the BSC Group, filed as Land Court Plan No. 20345-G, a copy of which is on file at the office of the Land Court Engineers containing 6.61 acres, more or less.

 

PARCEL 21/As shown on the Survey

 

Title in and to the fee of that portion of Acorn Park in Arlington lying between Lots 7 and 13 as shown on the Master Plan.  (Being also Lots 7 and 13 as shown on the Survey)

 

 

PARCEL 22:

 

Lot X2/Y2

 

Two (2) parcels of land situated off Concord Turnpike (Route 2) in the City of Cambridge, Middlesex County, Massachusetts

 

Lot X 2

 

Southeasterly by lot F as shown on plan hereinafter mentioned, fifteen feet,

 

Southwesterly by lot Y2 on said plan, eighty feet; and

 

Northwesterly, fifteen feet, and

 

Northeasterly, eighty feet, by lot X1 on said plan

 

Said parcel is shown as lot X2 on said plan.

 

All of said boundaries are determined by the Court to be located as shown on a subdivision plan, as approved by the Court, filed in the Land Registration Office, a copy of which is filed in the Registry of Deeds for the South Registry District of Middlesex County in Registration Book 530, Page 158, with Certificate No. 80108 (Land Court Plan 4351V).

 

Parcel II (Lot Y 2)

 

Southeasterly by lot F as shown on plan hereinafter mentioned, twenty-five feet,

 

Southwesterly, eighty feet, and

 

Northwesterly, twenty-five feet, by lot Y1 on said plan; and

 

Northeasterly by lot X2 on said plan, eighty feet.

 

Said parcel is shown as lot Y2 on said plan.

 

All of said boundaries are determined by the Court to be located as shown on a subdivision plan, as approved by the Court, filed in the Land Registration Office, a copy of which is filed in the Registry of Deeds for the South Registry District of Middlesex County in Registration Book 530, Page 158, with Certificate No 80108 (Land Court Plan 4351V).

 

PARCEL 23:

 

The rights and easements, appurtenant to the Parcels described in this Exhibit A, as set forth in that certain DECLARATION OF EASEMENTS, COVENANTS, CONDITIONS AND RESTRICTIONS FOR CAMBRIDGE DISCOVERY PARK by BHX, LLC, as Trustee of Acorn Park Holdings Realty Trust, dated March 22, 2005, and recorded with the Middlesex South County Registry of Deeds on March 31, 2005 in Book 44910, Page 58, and filed with said Registry District as Document No 1369429.

 

 

EXHIBIT A-2

 

PROPERTY DESCRIPTION (PARCEL 100)

 

 

EXHIBIT A-2

 

BUILDING 100 GROUND LEASE AREA

 

A certain parcel of land situated on the northerly side of Acorn Park Drive in the City of Cambridge, in the County of Middlesex, Commonwealth of Massachusetts, bounded and described as follows:

 

Beginning at a point in the northerly line of Acorn Park Drive, said point lying S 89° 27’ 22” E a distance of two hundred eighteen and eighty-seven hundredths (218.87) feet from the most southeasterly corner of Parcel 12 / Lot 8 as shown on a plan referenced below, thence

 

N 00° 00’ 00” E a distance of severity-seven and twenty-four hundredths (77.24) feet to a point; thence

 

N 31° 27’ 14” E a distance of one hundred twenty-three and fifty-one hundredths (123.51) feet to a point; thence

 

NORTHEASTERLY and curving to the right along the arc of a curve having a radius of eighty-two and no hundredths (82.00) feet, a length of sixty-seven and eighteen hundredths (67.18) feet to a point; thence

 

NORTHEASTERLY and curving to the right along the arc of a curve having a radius of eight hundred eighty-four and no hundredths (884.00) feet, a length of one hundred thirty-five and thirty hundredths (135.30) feet to a point; thence

 

S 00° 00’ 00” W a distance of ninety-four and ninety hundredths (94.00) feet to a point on the northerly face of Proposed Building 100; thence

 

N 90° 00’ 00” E a distance of fourteen and no hundredths (14.00) feet to a point at the northeast corner of Proposed Building 100; thence

 

S 00° 00’ 00” W a distance of one hundred forty-four and seventy-six hundredths (144.76) feet in part by the easterly face of Proposed Building 100; thence

 

N 89° 27’ 22” W a distance of two hundred sixty-six and one hundredth (266.01) feet to the point of beginning, the previous course bounding on Acorn Park Drive as shown on plan hereafter mentioned.

 

The above described parcel of land contains an area of 52,656 S.F., more or less and is more particularly shown on a plan entitled:  “Cambridge Discovery Park in Cambridge Massachusetts — Building 100 Ground Lease Plan”, prepared by The BSC Group, Inc. and dated February 7, 2005, Dwg. No. 2467-21, a copy of which is attached to the Notice of Lease dated March 22, 2005, between BHX, LLC, as Trustee of Acorn Park Holdings Trust, as landlord and BHX, LLC as Trustee of 100 Discovery Park Realty Trust, as tenant which was recorded on March 31, 2005, in Book 44910, Page 119, and filed as Document No. 1369427.

 

Parcel II:

 

The right and easement, appurtenant to Parcel I, described in this Exhibit A, to use Acorn Park Road, a private way, now or formerly owned by AP Cambridge Partners II LLC, and located partly in Cambridge and partly in Belmont for access to and from Frontage Road A (a public way) to and from the insured premises on foot and by vehicle and for all purposes for which streets may be used in Cambridge and Belmont, for utilities and for flowage all as set forth in and in accordance with the terms and conditions of that certain document entitled “Declaration, Amendment and Restatement of Easements”, dated November 17, 2000, and filed as Document No. 1155607, and recorded on November 17, 2000, as Instrument No. 1138, in Book 32042, Page 496.

 

 

Parcel III:

 

The right and easement, appurtenant to Parcel I described in this Exhibit A, to use that portion of the road or way known as Acorn Park, which is private and located in Arlington, for access to and from the insured premises on foot and by vehicle and for all purposes for which streets may be used in Arlington, and for utilities installation.

 

Parcel IV:

 

The rights and easements, appurtenant to Parcel I described in this Exhibit A, as set forth in that certain DECLARATION OF EASEMENTS, COVENANTS, CONDITIONS AND RESTRICTIONS FOR CAMBRIDGE DISCOVERY PARK by BHX, LLC, as Trustee of Acorn Park Holdings Realty Trust, dated March 22, 2005, and recorded on March 31, 2005, in Book 44910, Page 58, and filed as Document No. 1369429.

 

 

EXHIBIT B

 

SITE PLAN

 

 

 

 

EXHIBIT C

 

BUILDING FLOOR PLAN (FIFTH FLOOR)

 

 

 

 

EXHIBIT C-1

 

BUILDING FLOOR PLAN (FIRST FLOOR)

 

 

 

 

EXHIBIT D

 

RULES AND REGULATIONS

 

TBCI, LLC, as Trustee of 100 Discovery Park Realty Trust, and BHX, LLC, as Trustee of Acorn Park I Realty Trust (collectively, “Landlord”), hereby promulgate the rules and regulations (the “Rules and Regulations”) set forth below with respect to the use of the buildings (the “Buildings”) and related amenities located at and known as Cambridge Discovery Park, Cambridge, Massachusetts (the “Property”) by tenants (collectively, the “Tenants,” and individually, a “Tenant”) of the Buildings.  Any space within the Buildings leased by a Tenant is called “Premises.”  The Rules and Regulations are as follows:

 

1.                                      Sidewalks, doorways, vestibules, stairways, elevators, corridors, halls and other similar areas within the common areas of the Property (the “Common Areas”) shall not be obstructed by any Tenant or used for any purpose other than ingress and egress to and from the portion of the Property leased by the applicable Tenant and for going from one part of the Property to another part of the Property.

 

2.                                      Except for any signs approved by Landlord, no sign, advertisement, notice or other lettering shall be exhibited, inscribed, painted or affixed by a Tenant on or to any window, door, corridor or other part of the Buildings which is visible from outside of the Premises without the prior written consent of Landlord.

 

3.                                      Landlord will provide and maintain a directory board in a Common Area identifying the Tenants.  Without the prior written consent of Lender, no Tenant shall be entitled to maintain any other directory or identifying sign in any Common Area.

 

4.                                      Movement of furniture, office equipment or any bulky material which requires movement through the Common Areas of the Buildings shall be restricted to such hours as Landlord may reasonably designate, and such movement shall be subject to such restrictions as Landlord may reasonably impose.

 

5.                                      Landlord shall have the authority to limit the weight of, and to prescribe and restrict the positioning and manner of installation of, safes, file cabinets and other heavy equipment.

 

6.                                      No Tenant shall use, or permit any person making or receiving any delivery to its Premises to use, any hand trucks except those equipped with rubber tires and side guards.

 

7.                                      Subject to applicable security restrictions imposed by any governmental body for which Tenant is performing services, all locks for doors in each Tenant’s Premises shall be building standard and no Tenant shall place any additional lock or locks on any door in its Premises without Landlord’s prior written consent.  All requests for duplicate keys shall be made through Landlord and charged to the Tenant.  Upon termination of a Tenant’s tenancy, the Tenant shall deliver to Landlord all keys to the Tenant’s Premises, to interior doors within the Tenant’s Premises, to doors within the Common Areas and to exterior Building doors which have been furnished to or obtained by the Tenant.

 

8.                                      Corridor doors, when not in use, shall be kept closed.

 

9.                                      Each Tenant shall lock all doors of its Premises leading to Common Areas at the close of its working day.

 

 

10.                               No curtains, blinds, draperies or other window treatments shall be attached to or hung in any window of the Premises of a Tenant on an exterior wall of the Buildings or on an interior wall of any Building dividing the Premises from Common Areas without the prior written consent of Landlord, which consent shall not be unreasonably withheld.

 

11.                               Plumbing fixtures and appliances shall be used only for the purposes for which they were designed and constructed, and no sweepings, rubbish, rags or other material shall be thrown or placed therein.  The cost of repairing any damage resulting from misuse of the plumbing fixtures or appliances by a Tenant or its employees, agents or invitees shall be borne by the responsible Tenant.

 

12.                               No Tenant shall use or permit the use of its Premises, or any part thereof, for lodging, for manufacturing, for any immoral or illegal purpose, or for any other purpose which is not permitted by the terms of its lease.

 

13.                               No vending machines shall be allowed in any Premises without the prior written consent of Landlord, except for vending machines for the sole use of Tenant, its employees and invitees.

 

14.                               Each Tenant shall, at its expense, provide artificial light and electric current for the employees of Landlord and/or Landlord’s contractors while performing janitorial or other cleaning, maintenance or repair services in the Tenant’s Premises.

 

15                                  No Tenant will make or permit any of its employees, agents or invitees to make any improper noises in the Buildings or to otherwise interfere in any way with other Tenants or persons having business with them.

 

16.                               No Tenant shall cause any unnecessary janitorial labor or services by reason of the Tenant’s willful misconduct or carelessness or indifference in the preservation of good order and cleanliness.

 

17.                               No birds or animals of any kind shall be brought onto or kept on the Property, other than laboratory animals used in a Tenants permitted use of its Premises in accordance with applicable laws.

 

18.                               Without the prior written consent of Landlord, no Tenant shall use the name of the Project or any picture of the Project or Buildings in any materials promoting or advertising the business of the Tenant, except that each Tenant may use the address of the Project as the address of its business.

 

19.                               Each Tenant shall cooperate with Landlord to assure the effective operation of the heating and air conditioning systems serving the Tenant’s Premises and the Buildings.  Without limiting the generality of the immediately preceding sentence, each Tenant will, at the request of Landlord, close its window treatments when the sun’s rays fall directly on windows of its Premises.

 

20.                               Neither Landlord nor the Property manager will be responsible for lost or stolen money, jewelry or other personal property from any areas of the Property, regardless of whether the loss or theft occurs when the area in question is locked.

 

21.                               Landlord may, in its discretion, institute security measures in the operation of the Property, and Tenants will comply with all such security measures.  Such security measures may include, but are not limited to, requiring persons entering the Building or the Property to identify themselves to a watchman or other person designated by Landlord and to sign in and sign out of the Property, denying

 

 

access to persons who are not properly identified or appear suspicious, and conducting fire or other emergency drills.  The exercise of such security measures by Landlord and any resulting interruption of a Tenant’s business shall not constitute an eviction or disturbance of a Tenant’s use and possession of its Premises, render Landlord liable to the Tenant for damages, or relieve a Tenant from its obligations under its lease.

 

22.                               No bicycles or vehicles shall be brought into or kept in any Building.  All bicycles and vehicles brought onto the Property shall be driven and parked only in designated, paved areas.

 

23.                               Parking on the Property shall be subject to the restrictions set forth in this paragraph and, with respect to any particular Tenant, to any additional restrictions on parking set forth in such Tenant’s lease.  Each Tenant and such Tenant’s employees, agents and invitees shall have the right, in common with others and in connection with the conduct of Tenant’s business at the Property, to park passenger vehicles on portions of the Property which have been striped for parking, provided, however that (a) no Tenant or its employees or agents may park in any space marked “visitor,” and (b) no Tenant or its employees agents or invitees may park in any space marked “reserved,” unless reserved for such Tenant, and (c) persons parking their vehicles will do so exclusively within the marked parking space lines.  No Tenant or its employees, agents or invitees shall have a right to park vehicles on the Property for purposes other than in connection with the Tenant’s business at the Property.  Landlord shall have no responsibility to any Tenant or any Tenant’s employees, agents or invitees for any theft, loss of or damage to any vehicle or its contents on the Property.  Each Tenant’s parking rights, except as otherwise expressly provided in its lease, are in common with other Tenants and on a first come, first served basis, and, except as otherwise expressly provided in its lease or other written agreements with Landlord, no Tenant has the right to any designated parking spaces or to any particular number of parking spaces.

 

24.                               All vehicles brought onto the Property by Tenant, its employees, agents, customers and invitees shall be in good condition and appearance and shall be drivable.  No such vehicles shall be leaking oil or other fluids.

 

25                                  Each Tenant will deposit its garbage, trash and refuse only in approved trash containers within the Tenant’s Premises or in designated trash receptacles placed by Landlord within the Common Areas.  No Tenant shall deposit any hazardous, flammable or explosive substances in any trash receptacle on the Property

 

Landlord reserves the right to rescind, alter or waive any of the Rules and Regulations, and to adopt such additional rules and regulations as part of the Rules and Regulations, from time to time as Landlord reasonably deems it appropriate for the safety, protection, care and cleanliness of the Property, the operation thereof, the preservation of good order therein or the protection and comfort of the Tenants and their employees, agents and invitees.  An alteration or waiver of any of the Rules and Regulations in favor of one Tenant shall not, other than with the consent of Landlord, operate as an alteration or waiver in favor of any other Tenant.  Landlord shall not be responsible to any Tenant for the non-observance or violation by any other Tenant of any of the Rules and Regulations, nor for the enforcement of any of the Rules and Regulations against any other Tenant.  No Tenant shall have the right to enforce any of the Rules and Regulations against any other Tenant

 

 

EXHIBIT E

 

BENEFICIARY:
 TBCI, LLC
 AS TRUSTEE OF 100 DISCOVERY PARK REALTY TRUST
 C/O THE BULFINCH COMPANIES, INC. FIRST NEEDHAM PLACE
 250 FIRST AVENUE, SUITE 200
 NEEDHAM, MA 02494
 ATTN:  ROBERT SCHLAGER

 

APPLICANT:
 GENOCEA BIOSCIENCES, INC.
 161 FIRST STREET, SUITE 2C
 CAMBRIDGE, MA 02139

 

	
AMOUNT:
    	
 
    	
US$157,773.34 (ONE HUNDRED FIFTY SEVEN   THOUSAND SEVEN HUNDRED SEVENTY THREE AND 34/100 US DOLLARS)
    

 

EXPIRATION DATE: FEBRUARY 28, 2014

 

	
LOCATION:
    	
SANTA CLARA, CALIFORNIA
    

 

LADIES AND GENTLEMEN:

 

WE HEREBY ESTABLISH OUR IRREVOCABLE STANDBY LETTER OF CREDIT NO. SVBSF         IN YOUR FAVOR.  THIS LETTER OF CREDIT IS AVAILABLE BY SIGHT PAYMENT WITH OURSELVES ONLY AGAINST PRESENTATION AT THE BANK’S OFFICE (AS DEFINED BELOW) OF THE FOLLOWING DOCUMENTS:

 

1.              THE ORIGINAL OF THIS LETTER OF CREDIT AND ALL AMENDMENT(S), IF ANY.

 

2.              YOUR SIGHT DRAFT, IN WHOLE OR IN PART DRAWN ON US IN THE FORM ATTACHED HERETO AS EXHIBIT “A”.

 

3                 A DATED STATEMENT PURPORTEDLY SIGNED BY AN AUTHORIZED REPRESENTATIVE OF THE BENEFICIARY, FOLLOWED BY HIS/HER PRINTED NAME AND DESIGNATED TITLE, STATING ANY OF THE FOLLOWING WITH INSTRUCTIONS IN BRACKETS THEREIN COMPLIED WITH:

 

(A.)                “AN “EVENT OF DEFAULT” (AS DEFINED IN THE LEASE) HAS OCCURRED BY GENOCEA BIOSCIENCES, INC., AS TENANT UNDER THAT CERTAIN LEASE AGREEMENT DATED                   [INSERT DATE] BY AND BETWEEN TENANT, AND BENEFICIARY, AS LANDLORD.  FURTHERMORE THIS IS TO CERTIFY THAT THE TERMS AND CONDITIONS OF THE LEASE AUTHORIZE LANDLORD TO NOW DRAW DOWN ON THE LETTER OF CREDIT.”

 

OR

 

(B.)                “BENEFICIARY HAS RECEIVED A NOTICE FROM SILICON VALLEY BANK THAT ITS IRREVOCABLE LETTER OF CREDIT NUMBER SVBSF                                   WILL NOT BE EXTENDED AND APPLICANT HAS FAILED TO PROVIDE A

 

 

REPLACEMENT LETTER OF CREDIT’ SATISFACTORY TO BENEFICIARY AT LEAST THIRTY (30) DAYS PRIOR TO THE CURRENT EXPIRATION DATE.”

 

THE LEASE MENTIONED ABOVE IS FOR IDENTIFICATION PURPOSES ONLY AND 15 NOT INTENDED THAT SAID LEASE BE INCORPORATED HEREIN OR FORM PART OF THIS LETTER OF CREDIT.

 

PARTIAL AND MULTIPLE DRAWINGS ARE ALLOWED.

 

THIS LETTER OF CREDIT MUST ACCOMPANY ANY DRAWINGS HEREUNDER FOR ENDORSEMENT OF THE DRAWING AMOUNT AND WILL BE RETURNED TO BENEFICIARY UNLESS IT IS FULLY UTILIZED.

 

THIS LETTER OF CREDIT SHALL BE AUTOMATICALLY EXTENDED FOR AN ADDITIONAL PERIOD OF ONE YEAR, WITHOUT AMENDMENT, FROM THE PRESENT AND/OR EACH FUTURE EXPIRATION DATE UNLESS AT LEAST SIXTY (60) DAYS PRIOR TO THE THEN CURRENT EXPIRATION DATE WE SEND YOU A NOTICE BY REGISTERED MAIL/OVERNIGHT COURIER SERVICE AT THE ABOVE ADDRESS (OR SUCH OTHER ADDRESS AS BENEFICIARY MAY FROM TIME TO TIME DESIGNATE IN A NOTICE DELIVERED TO SILICON VALLEY BANK AT THE BANK’S OFFICE) THAT THIS LETTER OF CREDIT WILL NOT BE EXTENDED BEYOND THE THEN-CURRENT EXPIRATION DATE.  BUT IN ANY EVENT THIS LETTER OF CREDIT WILL NOT BE EXTENDED BEYOND FEBRUARY 28, 2017 WHICH SHALL BE THE FINAL EXPIRATION DATE OF THIS LETTER OF CREDIT

 

THE DATE THIS LETTER OF CREDIT EXPIRES IN ACCORDANCE WITH THE ABOVE PROVISION IS THE ‘‘FINAL EXPIRATION DATE”.  UPON THE OCCURRENCE OF THE FINAL EXPIRATION DATE THIS LETTER OF CREDIT SHALL FULLY AND FINALLY EXPIRE AND NO PRESENTATIONS MADE UNDER THIS LETTER OF CREDIT AFTER SUCH DATE WILL BE HONORED.

 

THIS LETTER OF CREDIT IS TRANSFERABLE WITHOUT COST TO THE BENEFICIARY ONE OR MORE TIMES BY THE ISSUING BANK, AT THE REQUEST OF THE BENEFICIARY, BUT IN EACH INSTANCE ONLY TO A SINGLE BENEFICIARY AS TRANSFEREE AND ONLY UP TO THE THEN AVAILABLE AMOUNT IN FAVOR OF ANY NOMINATED TRANSFEREE THAT IS THE SUCCESSOR IN INTEREST TO BENEFICIARY (“TRANSFEREE”), ASSUMING SUCH TRANSFER TO SUCH TRANSFEREE WOULD BE IN COMPLIANCE WITH THEN APPLICABLE LAW AND REGULATION, INCLUDING BUT NOT LIMITED TO THE REGULATIONS OF THE U.S. DEPARTMENT OF TREASURY AND U.S. DEPARTMENT OF COMMERCE.  AT THE TIME OF TRANSFER, THE ORIGINAL LETTER OF CREDIT AND ORIGINAL AMENDMENT(S), IF ANY, MUST BE SURRENDERED TO US AT OUR ADDRESS INDICATED IN THIS LETTER OF CREDIT TOGETHER WITH OUR LETTER OF TRANSFER DOCUMENTATION AS PER ATTACHED EXHIBIT “B” DULY EXECUTED.  THE CORRECTNESS OF THE SIGNATURE AND TITLE OF THE PERSON SIGNING THE TRANSFER FORM MUST BE VERIFIED BY BENEFICIARY’S BANK.  APPLICANT SHALL PAY OUR TRANSFER FEE OF 1⁄4 OF 1% OF THE TRANSFER AMOUNT (MINIMUM US$250.00) UNDER THIS LETTER OF CREDIT.  ANY REQUEST FOR TRANSFER WILL BE EFFECTED BY US SUBJECT TO THE ABOVE CONDITIONS. HOWEVER, ANY REQUEST FOR TRANSFER IS NOT CONTINGENT UPON APPLICANT’S ABILITY TO PAY OUR TRANSFER FEE.  ANY TRANSFER OF THIS LETTER OF

 

 

CREDIT MAY NOT CHANGE THE PLACE OR DATE OF EXPIRATION OF THE LETTER OF CREDIT FROM OUR ABOVE SPECIFIED OFFICE.  EACH TRANSFER SHALL BE EVIDENCED BY OUR ENDORSEMENT ON THE REVERSE OF THE LETTER OF CREDIT AND WE SHALL FORWARD THE ORIGINAL OF THE LETTER OF CREDIT SO ENDORSED TO THE TRANSFEREE.

 

DRAFT(S) AND DOCUMENTS MUST INDICATE THE NUMBER OF THIS LETTER OF CREDIT.

 

ALL DEMANDS FOR PAYMENT SHALL BE MADE BY PRESENTATION OF THE ORIGINAL APPROPRIATE DOCUMENTS DURING REGULAR BUSINESS HOURS ON A BUSINESS DAY AT OUR OFFICE (THE “BANK’S OFFICE”) AT:  SILICON VALLEY BANK, 3003 TASMAN DRIVE, MAIL SORT HF210, SANTA CLARA, CALIFORNIA 95054, ATTENTION:  GLOBAL FINANCIAL SERVICES STANDBY LETTER OF CREDIT DEPARTMENT; OR BY FACSIMILE TRANSMISSION AT (408) 969-6510 OR (408) 496-2418 AND SIMULTANEOUSLY UNDER TELEPHONE ADVICE TO: (408) 654-6274 OR (408) 654-7716, ATTENTION STANDBY LETTER OF CREDIT NEGOTIATION DEPARTMENT WITH ORIGINALS TO FOLLOW BY OVERNIGHT COURIER SERVICE, PROVIDED, HOWEVER, THE BANK WILL DETERMINE HONOR OR DISHONOR ON THE BASIS OF PRESENTATION BY FACSIMILE ALONE, AND WILL NOT EXAMINE THE ORIGINALS.

 

AS USED HEREIN, THE TERM “BUSINESS DAY” MEANS A DAY ON WHICH WE ARE OPEN AT OUR ABOVE ADDRESS IN SANTA CLARA, CALIFORNIA TO CONDUCT OUR LETTER OF CREDIT BUSINESS NOTWITHSTANDING ANY PROVISION TO THE CONTRARY IN THE ISP98 (AS HEREINAFTER DEFINED).  IF THE EXPIRATION DATE OR THE FINAL EXPIRATION DATE IS NOT A BUSINESS DAY THEN SUCH DATE SHALL BE AUTOMATICALLY EXTENDED TO THE NEXT SUCCEEDING DATE WHICH IS A BUSINESS DAY.

 

WE HEREBY ENGAGE WITH YOU THAT DRAFT(S) DRAWN AND/OR DOCUMENTS PRESENTED UNDER AND IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THIS LETTER OF CREDIT SHALL BE DULY HONORED UPON PRESENTATION TO SILICON VALLEY BANK.  IF PRESENTED ON OR BEFORE THE EXPIRATION DATE OF THIS LETTER OF CREDIT.

 

IF ANY INSTRUCTIONS ACCOMPANYING A DRAWING UNDER THIS LETTER OF CREDIT REQUEST THAT PAYMENT IS TO BE MADE BY TRANSFER TO YOUR ACCOUNT WITH ANOTHER BANK, WE WILL ONLY EFFECT SUCH PAYMENT BY FED WIRE TO A U.S. REGULATED BANK, AND WE AND/OR SUCH OTHER BANK MAY RELY ON AN ACCOUNT NUMBER SPECIFIED IN SUCH INSTRUCTIONS EVEN IF THE NUMBER IDENTIFIES A PERSON OR ENTITY DIFFERENT FROM THE INTENDED PAYEE.

 

EXCEPT SO FAR AS OTHERWISE EXPRESSLY STATED HEREIN, THIS LETTER OF CREDIT IS SUBJECT TO THE INTERNATIONAL STANDBY PRACTICE ISP98, INTERNATIONAL CHAMBER OF COMMERCE, PUBLICATION NO. 590.

 

SILICON VALLEY BANK,

 

	
 
    	
 
    	
 
    
	
(FOR BANK USE ONLY)
    	
 
    	
(FOR BANK USE ONLY)
    

 

 

EXHIBIT “A”

 

SIGHT DRAFT/BILL OF EXCHANGE

 

	
DATE:
    	
 
    	
 
    	
REF NO.
    	
 
    
	
 
    	
 
    
	
AT SIGHT OF THIS DRAFT
    	
 
    
	
 
    	
 
    	
 
    
	
PAY TO THE ORDER OF
    	
 
    	
US$
    
	
U.S. DOLLARS
    	
 
    
	
 
    	
 
    
	
“DRAWN UNDER SILICON VALLEY BANK, SANTA CLARA,   CALIFORNIA, IRREVOCABLE STANDBY LETTER OF CREDIT NUMBER NO. SVBSF           DATED                    , 20   ”
    
	
 
    	
 
    	
 
    
	
TO:
    	
SILICON VALLEY BANK
    	
 
    
	
 
    	
3003 TASMAN DRIVE
    	
[INSERT NAME OF   BENEFICIARY]
    
	
 
    	
SANTA CLARA, CA 95054
    	
 
    
	
 
    	
 
    
	
 
    	
Authorized   Signature
    
							

 

GUIDELINES TO PREPARE THE SIGHT DRAFT OR BILL OF EXCHANGE:

 

	
1.
    	
 
    	
DATE
    	
INSERT   ISSUANCE DATE OF DRAFT OR BILL OF EXCHANGE.
    
	
 
    	
 
    	
 
    	
 
    
	
2.
    	
 
    	
REF.   NO.
    	
INSERT   YOUR REFERENCE NUMBER IF ANY.
    
	
 
    	
 
    	
 
    	
 
    
	
3.
    	
 
    	
PAY   TO THE ORDER OF:                 INSERT NAME OF BENEFICIARY.
    
	
 
    	
 
    	
 
    	
 
    
	
4.
    	
 
    	
US$
    	
INSERT   AMOUNT OF DRAWING IN NUMERALS/FIGURES.
    
	
 
    	
 
    	
 
    	
 
    
	
5.
    	
 
    	
U.S.   DOLLARS
    	
INSERT   AMOUNT OF DRAWING IN WORDS.
    
	
 
    	
 
    	
 
    	
 
    
	
6.
    	
 
    	
LETTER   OF CREDIT NUMBER               INSERT THE LAST DIGITS OF OUR STANDBY L/C NUMBER THAT PERTAINS TO THE   DRAWING.
    
	
 
    	
 
    	
 
    	
 
    
	
7.
    	
 
    	
DATED
    	
INSERT   THE ISSUANCE DATE OF OUR STANDBY L/C.
    

 

NOTE:  BENEFICIARY SHOULD ENDORSE THE BACK OF THE SIGHT DRAFT OR BILL OF EXCHANGE AS YOU WOULD A CHECK.

 

IF YOU NEED FURTHER ASSISTANCE IN COMPLETING THIS SIGHT DRAFT OR BILL OF EXCHANGE, PLEASE CALL OUR L/C PAYMENT SECTION AND ASK FOR: JOHN DOSSANTOS AT (408) 654-6274 OR ENRICO NICOLAS AT (408) 654-7127 OR EVELIO BARAIRO AT (408) 654-3035

 

 

EXHIBIT “B”

 

	
DATE:
    	
 
    
	
 
    	
 
    	
 
    
	
TO:
    	
SILICON   VALLEY BANK
    	
 
    
	
 
    	
3003   TASMAN DRIVE
    	
RE:   IRREVOCABLE STANDBY LETTER
    
	
 
    	
SANTA   CLARA, CA 95054
    	
OF CREDIT NO.      ISSUED   BY SILICON
    
	
 
    	
ATTN:  
    	
INTERNATIONAL   DIVISION
    	
VALLEY   BANK, SANTA CLARA
    
	
 
    	
 
    	
STANDBY   LETTERS OF CREDIT
    	
L/C   AMOUNT:
    

 

GENTLEMEN:

 

FOR VALUE RECEIVED, THE UNDERSIGNED BENEFICIARY HEREBY IRREVOCABLY TRANSFERS TO:

 

(NAME OF TRANSFEREE)
 (ADDRESS)

 

ALL RIGHTS OF THE UNDERSIGNED BENEFICIARY TO DRAW UNDER THE ABOVE LETTER OF CREDIT UP TO ITS AVAILABLE AMOUNT AS SHOWN ABOVE AS OF THE DATE OF THIS TRANSFER.

 

BY THIS TRANSFER, ALL RIGHTS OF THE UNDERSIGNED BENEFICIARY IN SUCH LETTER OF CREDIT ARE TRANSFERRED TO THE TRANSFEREE.  TRANSFEREE SHALL HAVE THE SOLE RIGHTS AS BENEFICIARY THEREOF, INCLUDING SOLE RIGHTS RELATING TO ANY AMENDMENTS, WHETHER INCREASES OR EXTENSIONS OR OTHER AMENDMENTS, AND WHETHER NOW EXISTING OR HEREAFTER MADE.  ALL AMENDMENTS ARE TO BE ADVISED DIRECT TO THE TRANSFEREE WITHOUT NECESSITY OF ANY CONSENT OF OR NOTICE TO THE UNDERSIGNED BENEFICIARY.

 

THE ORIGINAL OF SUCH LETTER OF CREDIT IS RETURNED HEREWITH, AND WE ASK YOU TO ENDORSE THE TRANSFER ON THE REVERSE THEREOF, AND FORWARD IT DIRECTLY TO THE TRANSFEREE WITH YOUR CUSTOMARY NOTICE OF TRANSFER.

 

	
SINCERELY,
    	
 
    	
SIGNATURE AUTHENTICATED
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The   name(s), title(s), and signature(s) conform to that/those on file with   us for the company and the signature(s) is/are authorized to execute   this instrument.

 

We   further confirm that the company has been identified applying the appropriate   due diligence and enhanced due diligence as required by BSA and all its   subsequent amendments.
    
	
 
    	
 
    
	
(BENEFICIARY’S NAME)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
(SIGNATURE OF BENEFICIARY)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
(NAME AND TITLE)
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(Name of Bank)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(Address of Bank)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(City, State, ZIP Code)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(Authorized Name and Title)
    

 

 

EXHIBIT F

 

SECRETARY’S CERTIFICATE

 

The undersigned hereby certifies that he/she is the Secretary of Genocea Biosciences, Inc., a Delaware corporation (the “Corporation”), and that the execution and delivery of the foregoing lease by Robert E. Farrell, the Vice President of Finance and Administration of the Corporation, has been duly authorized by a vote of the board of directors of the Corporation which is in full force and effect as of this day and that Robert E. Farrell has in fact signed the foregoing lease.

 

[Signature Page Follows]

 

 

	
 
    	
/s/   Marc A. Rubenstein
    
	
 
    	
Marc   A. Rubenstein, Secretary
    
	
 
    	
Date:   July 9, 2012
    

 

[Signature Page to Secretary’s Certificate]

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