Document:

Exhibit 10.2

 

FIRST AMENDMENT TO SUBLEASE

 

THIS FIRST AMENDMENT TO SUBLEASE (“First Amendment”) is dated for reference purposes as of January 9, 2013, by and between HINES REIT ONE WILSHIRE SERVICES, INC., a Delaware corporation (“Landlord”), and CORESITE ONE WILSHIRE, L.L.C., a Delaware limited liability company (formerly known as CRG West One Wilshire, L.L.C.) (“Tenant”).

 

R E C I T A L S :

 

A.                                    Landlord and Tenant entered into that certain Lease dated as of August 1, 2007 (the “Existing  Lease”), pursuant to which Landlord subleased to Tenant and Tenant subleased from Landlord certain space (the “Premises”) consisting of approximately 10,848 rentable square feet on the fourth (4th) floor of that certain office building located at 624 S. Grand Avenue, Los Angeles, California (the “Building”).  The Existing Lease is actually a sublease of the Premises, as Landlord is the tenant of the Premises pursuant to the Master Lease between Master Landlord, as landlord, and Landlord, as tenant.

 

B.                                    References to “the Lease” in this First Amendment, and, following the Amendment Date, references to “this Lease” in the Existing Lease shall all mean and refer to the Existing Lease, as amended by this First Amendment.  Unless otherwise specified herein, all references in this First Amendment to an Article or Section number of “the Lease” shall refer to such article or section number in the Existing Lease.

 

C.                                    Disputes have arisen between Landlord and Tenant and between Tenant and Master Landlord as to how much electrical and generator power Landlord under the Existing Lease and/or Master Landlord under the Master Lease are required to provide and/or make available to the Premises (collectively, the “Dispute”).

 

D.                                    Concurrently with the execution of this First Amendment:  (i) Master Landlord and Landlord are executing an amendment to the Master Lease (the “Master Lease Amendment”) to, among other things, (a) extend the current lease term of the Master Lease for five (5) years, and (b) address matters arising out of the Dispute, including, without limitation, to set forth Master Landlord’s obligations with respect to the amount of electrical and generator power that will be made available to the Premises by Master Landlord under the Master Lease for use by Landlord (and ultimately by Tenant under the Lease); and (ii) Master Landlord and Tenant are executing that certain Fourth Amendment to Lease (the “CRG Direct Lease Amendment”) to, among other things, (a) extend the current lease term of the CRG Direct Lease for five (5) years, and (b) address matters arising out of the Dispute, including, without limitation, to set forth Master Landlord’s obligations with respect to the amount of electrical and generator power that will be made available to the premises leased by Tenant thereunder and to the Premises.

 

E.                                     Landlord and Tenant now desire to amend the Existing Lease to:  (i) settle the Dispute and set forth Landlord’s obligations as sublandlord under the Lease with respect to the

 

 

amount of electrical and generator power that will be made available to the Premises by Master Landlord under the Master Lease Amendment; (ii) consent to the Master Lease Amendment; (iii) extend the Lease Term; and (iv) modify various terms and provisions of the Existing Lease, all as hereinafter provided.

 

A G R E E M E N T :

 

NOW, THEREFORE, in consideration of the foregoing Recitals and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.                                      Capitalized Terms; Definitions; Rentable Square Feet.

 

1.1                               Capitalized Terms.  Except as otherwise expressly provided herein to the contrary, all capitalized terms used in this First Amendment shall have the same meaning given such terms in the Existing Lease.

 

1.2                               Definitions.  From and after the date on which both Landlord and Tenant have executed and delivered this First Amendment (the “Amendment Date”), the following defined terms are added to, or amended in, as applicable, the Lease:

 

1.2.1                     “Lease Term” is amended and restated in its entirety to mean the Lease Term as extended from time to time under the Lease, and the “original Lease Term” or “initial Lease Term” is deemed to mean the portion of the Lease Term expiring on July 31, 2017.

 

1.2.2                     “First Amendment” shall mean the First Amendment to Sublease, dated for reference purposes only as of January 9, 2013, between Landlord and Tenant.

 

1.2.3                     “CRG Direct Lease” is amended and restated in its entirety to mean that certain Lease dated as of August 1, 2007, between Master Landlord, as landlord, and Tenant, as tenant, as amended by (i) First Amendment to Lease dated as of May 1, 2008, (ii) Second Amendment to Lease dated as of November 5, 2009, (iii) Third Amendment to Lease dated as of June 15, 2011, and (iv) the CRG Direct Lease Amendment, dated for reference purposes only concurrently with the First Amendment.

 

1.2.4                     “Master Lease” is amended and restated in its entirety to mean that certain Lease dated as of August 1, 2007, between Master Landlord, as landlord, and Landlord, as tenant, as amended by the Master Lease Amendment, dated for reference purposes only concurrently with the First Amendment.

 

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1.3                               Rentable Square Feet.  For purposes of clarification, (i) the Premises contains a total of 10,848 rentable square feet, and (ii) such square footage amount is not subject to re-measurement by Landlord or Tenant.

 

2.                                      Consent to Master Lease Amendment.  Tenant consents to the Master Lease Amendment and all of the terms and provisions thereof.  Such consent is being provided by Tenant only as the subtenant under the Lease and shall have no impact on the CRG Direct Lease.

 

3.                                      Extended Term.  The Lease Term, which is currently scheduled to expire on July 31, 2017 (the “Existing Expiration Date”), is hereby extended for a period of five (5) years (the “Extended Term”) commencing on August 1, 2017 (the “Extended Term Commencement Date”), and expiring on July 31, 2022 (the “Extended Term Expiration Date”), unless sooner terminated, or further extended, as provided in the Lease.

 

4.                                      Base Rent.  The Base Rent payable by Tenant during the Extended Term shall be determined in accordance with Section 3.2 of the Lease, with the Adjustment Dates for the Extended Term to be the Extended Term Commencement Date and each annual anniversary thereof.

 

5.                                      Proposition 13 Protection.  From and after the Extended Term Commencement Date, the provisions of Section 4.5 of the Lease shall be deleted and of no further force or effect.

 

6.                                      Condition of Premises.  Except for Landlord’s obligation to cause Master Landlord to perform and pay for the Power Improvements pursuant to Section 8.3 below, (i) Landlord shall not be obligated to perform, provide or pay for any improvements, work or services related to the improvement, remodeling or refurbishment of the Premises, and (ii) Tenant shall occupy and accept the Premises as of the Amendment Date in its then “AS IS” condition.

 

7.                                      Option Terms.  Tenant shall continue to have three consecutive options to further extend the Lease Term for a period of five years each with respect to the entire Premises pursuant to Section 2.2 of the Lease.

 

8.                                      Electrical and Generator Power.

 

8.1                               Except as otherwise expressly provided in this Section 8 or Section 9, below, to the contrary, all capitalized terms used in this Section 8 and such Section 9 but not defined in this First Amendment shall have the same meaning given such terms in Section 11 of the CRG Direct Lease Amendment (the “Power Provision”).

 

8.2                               Effective as of the Amendment Date, (i) the 1st sentence of the last paragraph of Section 6.9.2 of the Lease is deleted, (ii) the phrase “Landlord Generators” in the last sentence of Section 6.9.2 of the Lease is deleted and replaced with the phrase “Generators other than Generator No. 9 and the Tenant Connecting Equipment therefor (as each term is defined in the CRG Direct Lease Amendment)”, and (iii) Exhibit F attached to the Lease is deleted and replaced with Exhibit F attached to this First Amendment (“New Exhibit F”).

 

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8.3                               If and to the extent applicable to the Premises (referred to in the CRG Direct Lease Amendment as the “4th Floor Space”), the Power Provision is incorporated herein by reference and shall govern the rights and obligations of Landlord and Tenant under the Lease with respect to the subject matter thereof; provided that:

 

8.3.1                     Power shall be:  (i) supplied to the Premises through the Electrical Connections which service the Premises; (ii) separately submetered pursuant to and in accordance with Section 6.2 of the Lease; and (iii) separately paid for by Tenant to Landlord (or at Landlord’s option, directly to Master Landlord) pursuant to and in accordance with Section 6.2 of the Lease.

 

8.3.2                     As between Landlord and Tenant:  (i) references in the Power Provision to sections “of the Lease” shall mean and refer to such sections of the Existing Lease as defined in this First Amendment; (ii) Landlord shall cause Master Landlord to perform the obligations of “Landlord” with respect to the Premises as and when required under the Power Provision; (iii) the definition of “Special Equipment” in the Power Provision shall be limited to Tenant Connection Equipment; (iv) with respect to the waivers, releases and indemnities of Section 11.7, the defined terms “Landlord”, “Tenant”, “Landlord Parties” and “Tenant Parties” shall have the meaning ascribed to them in the Lease; (v) the first sentence of Section 11.3.1 and the last sentence of Section 11.6.1 shall not be in effect; (vi) Sections 11.2.2, 11.5.3, 11.6.3.1, 11.6.3.2, 11.6.3.3, 11.10.5.4, 11.10.6 and 11.11 shall not be in effect; and (vii) Exhibit F-3 and Exhibit F-4 shall not be in effect.

 

8.3.3                     Tenant (i) acknowledges and consents to Master Landlord’s right to take Landlord Curative Action in accordance with Section 11.7.2, and (ii) agrees that, subject to the terms of the Power Provision, Landlord shall have the right to cause Master Landlord to exercise and/or enforce its rights thereunder (and all of its other rights under the Power Provision) with respect to the Premises.

 

8.3.4                     If the CRG Direct Lease expires or terminates prior to the expiration or termination of the Lease, then effective from and after the date of such expiration or termination of the CRG Direct Lease, (i) Tenant shall no longer have any right to use, or draw Power from, the U2 Riser or Generator No. 9, and (ii) the Power amounts applicable to the Premises shall be reduced and revised as follows (in lieu of the applicable Power amounts set forth in the CRG Direct Lease Amendment, including Exhibit F-1 attached thereto):  (a) the Riser Allocation Amount which Tenant is entitled to draw for the Premises from each applicable Riser shall be as specified in line 1, Column A of page 2 of New Exhibit F; (b) the Generator Allocation Amount which Tenant is entitled to draw for the Premises from each applicable Generator in the event of a Power Interruption shall be as specified in line 1, Column B of page 2 of New Exhibit F; (c) the Maximum Building Power Amount shall be as specified in line 2, Column A of page 2 of New Exhibit F; and (d) the Maximum Generator Power Amount shall be as specified in line 2, Column B of page 2 of New Exhibit F.  The parties shall execute an amendment to the Lease to amend and restate therein the Power Provision (to the extent incorporated into this First Amendment) to include the foregoing and any other necessary and/or appropriate modifications to reflect that the CRG Direct Lease is no longer in effect.

 

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8.4                               Restoration

 

8.4.1                     If Tenant modifies (or causes any modification of) any Electrical Connections serving the Premises following the Amendment Date by installing new cable and/or conduit from the Taps serving the Premises, then, prior to the expiration or earlier termination of the Lease, Tenant shall:  (i) leave in place the Taps serving the Premises having the aggregate rating shown for the applicable Riser and Generator on page 1 of New Exhibit F, together with all conduit and cabling and automatic transfer switches associated with such Taps; and (ii) leave in place all other Taps listed on page 1 of New Exhibit F serving such Riser and Generator, open the Tap disconnects and remove all connections from such other Taps, including all conduit and cabling and automatic transfer switches associated with such other Taps.

 

8.4.2                     If Tenant does not modify (or cause any modification of) any Electrical Connections serving the Premises following the Amendment Date by installing new cable and/or conduit from the Taps serving the Premises, then Tenant’s only restoration obligation with respect to such Electrical Connections shall be to surrender the same to Landlord in good working order and condition on or prior to the expiration or earlier termination of the Lease.

 

8.4.3                     Tenant shall be obligated to perform the restoration work described above in this Section 8.4 (the “Restoration Work”) (i) prior to the expiration of the Lease Term; (ii) at Tenant’s cost; and (iii) pursuant to and in accordance with Article 8 of the Lease and the applicable provisions of Section 2.1 of the Summary and Section 6.9 of the Lease.

 

9.                                      Release and Waiver.

 

9.1                               Release by Tenant.  In consideration for Landlord’s covenants and agreements set forth in this First Amendment, including, without limitation, in Section 8 above, Tenant, on behalf of itself and all of its agents, attorneys, partners, members, joint venturers, officers, directors, shareholders, employees, representatives, affiliates, predecessors, successors, assigns, and subtenants, and each of them, hereby forever:  (i) waives and relinquishes any right to (a) dispute that prior to the First Increase Date, Landlord had or has any obligation to make available, or cause Master Landlord to make available, electrical or generator power (including any Power) to the Premises in excess of the amount of Power to be made available to the Premises as of the Amendment Date pursuant to and in accordance with the Power Provision, or (b) dispute that prior to the Improvement Deadline, Landlord had or has any obligation to make available, or cause Master Landlord to make available, electrical or generator power (including any Power) to the Premises in excess of the amount of Power to be made available to the Premises as of the First Increase Date pursuant to and in accordance with the Power Provision, or (c) claim a breach by Landlord for any period prior to the Amendment Date with respect to any obligations of Landlord to provide or make available, or cause Master Landlord to provide or make available, electrical power and/or generator power to the Premises (the matters described in clauses (a) through (c), collectively, the “Disputed Matters”); and (ii) releases, acquits and forever discharges Landlord and Master Landlord and their respective agents, attorneys, partners, members, joint venturers, officers, directors, shareholders, employees, representatives, affiliates,

 

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predecessors, successors and assigns (including, without limitation, any subsequent owner of the Project and any prior, existing or future mortgagee of the Project), and each of them (collectively, the “Released Parties”), from any and all demands, damages, charges, claims, liabilities, losses, costs, expenses, attorneys’ fees and/or causes of action of any type, kind, nature description or character, whether known or unknown, suspected or unsuspected, liquidated or unliquidated, previously existing, now existing or hereafter arising, in law or equity, which Tenant ever had or now has or hereafter can, shall, or may have against the Released Parties, and each of them, which arise out of or are in any way connected, directly or indirectly, to the Disputed Matters (collectively, the “Released Claims”), and those Released Claims only.  This release by Tenant shall not affect or apply to Landlord’s obligation to cause the Master Landlord to perform the Power Improvements or Landlord’s other obligations under Section 8 above.  Tenant acknowledges that it might hereafter discover facts different from or in addition to those Tenant now knows or believes to be true with respect to the Released Claims, and Tenant expressly agrees to assume the risk of possible discovery of additional or different facts, and agrees that this First Amendment shall be and remain effective in all respects regardless of such additional or different discovered facts, or any change in circumstances.

 

9.2                                                 Waiver of California Code of Civil Procedure Section 1542.  With respect to the Released Claims, Tenant acknowledges that Tenant has either been advised by legal counsel or has made itself familiar with the provisions of California Civil Code  Section 1542, which provides as follows:

 

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

 

Tenant, being aware of the above code section, hereby expressly waives any rights Tenant may have thereunder, as well as under any other statutes or common-law principles of similar effect pertaining to the Released Claims.

 

9.3                                                 Claims Not Assigned.  Tenant represents and warrants to Landlord that it has not heretofore assigned or transferred or purported to assign or transfer to any person, firm, corporation or other entity, any of the Released Claims.  Tenant shall indemnify, defend and hold the Master Landlord/Landlord Parties harmless from and against any and all claims, demands, debts, damages, obligations, liabilities, costs, losses, expenses, rights of action, and causes of action based on, arising out of or in connection with any such transfer or assignment or purported transfer or assignment.

 

9.4                                                 No Admission of Liability.  Landlord and Tenant acknowledge that the provisions of Section 8 above and this Section 9 (and the provisions of Sections 11 and 12 of the CRG Direct Lease Amendment) represent a compromise and settlement pertaining to the Dispute, and by entering into this First Amendment, and by Master Landlord and Tenant entering into the CRG Direct Lease Amendment, none of Landlord, Master Landlord or Tenant admits or acknowledges the existence of any liability or wrongdoing.  This First Amendment and the CRG

 

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Direct Lease Amendment shall not be treated as an admission of liability by any party thereto for any purpose.

 

10.                               Service Provider Agreement.  Landlord and Tenant are also parties to that certain Service Provider Agreement dated August 1, 2007, and agree that:  (i) the “Meet-Me Room Sublease” as that term is used in such Service Provider Agreement shall mean the Lease; (ii) the phrase “the expiration or earlier termination of the Meet-Me Room Sublease” in clause (i)(A) of Section 4.1 thereof, is intended to and shall include any renewal or extension of the Lease Term, including the extension for the Extended Term as provided for in this First Amendment; (iii) the “Service Provider Main Lease” as that term is used in such Service Provider Agreement shall mean the CRG Direct Lease; and (iv) the phrase “the expiration or earlier termination of the Service Provider Main Lease” in clause (ii) of Section 4.1 thereof, is intended to and shall include any renewal or extension of the lease term of the CRG Direct Lease, including the 5-year lease extension provided for in the CRG Direct Lease Amendment.

 

11.                               Address of Landlord.  Landlord’s address currently set forth in Section 11 of the Summary, is amended by deleting the second notice address (i.e., the “copy to” address) therein and replacing it with the following:

 

“with a copy to:

 

Hines REIT One Wilshire LP,
 c/o Hines Interests Limited Partnership
 624 South Grand Avenue, Suite 2435
 Los Angeles, California 90017
 Attention:  Property Manager”

 

12.                               Brokers.  Landlord and Tenant each hereby represents and warrants to the other party that:  (i) it has had no dealings with any real estate broker or agent in connection with the negotiation and execution of this First Amendment other than (a) Hines Interests Limited Partnership (“Hines Interests”) representing Landlord (whose commissions, if any, shall be paid by Landlord pursuant to a separate agreement between Landlord and Hines Interests) and (b) CoreSite Realty Corporation (“CS Realty”) representing Tenant (whose commissions, if any, shall be paid by Tenant pursuant to a separate agreement between Tenant and CS Realty); and (ii) knows of no other real estate broker or agent who is entitled to a commission in connection with this First Amendment.  Each party agrees to indemnify and defend the other party against and hold the other party harmless from any and all claims, demands, losses, liabilities, lawsuits, judgments and costs and expenses (including, without limitation, reasonable attorneys’ fees) with respect to any leasing commission or equivalent compensation alleged to be owing on account of the breach by the indemnifying party of any of such indemnifying party’s representations, warranties and/or covenants set forth above in this Section 12.

 

13.                               Other Documents.  Any term defined in or provision incorporated into this First Amendment by reference to any other agreement or instrument shall continue to have such definition or be so incorporated, as applicable, whether or not such other agreement or instrument then is in effect.

 

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14.                               No Further Modification.  Except as set forth in this First Amendment, all of the terms and provisions of the Existing Lease shall remain unmodified and in full force and effect.

 

15.                               Counterparts.  This First Amendment may be executed in multiple counterparts, each of which is to be deemed original for all purposes, but all of which together shall constitute one and the same instrument.

 

[SIGNATURES CONTAINED ON FOLLOWING PAGE]

 

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IN WITNESS WHEREOF, this First Amendment has been executed by each of the parties as of the day and year written immediately below their respective signatures.

 

	
“LANDLORD”
    	
HINES REIT ONE WILSHIRE   SERVICES, INC.,
    
	
 
    	
a Delaware corporation
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Edmund Donaldson
    
	
 
    	
Name: 
    	
Edmund Donaldson
    
	
 
    	
Its: 
    	
Chief Investment Officer
    
	
 
    	
 
    	
 
    
	
 
    	
Date: 
    	
January   10, 2013
    
	
 
    	
 
    
	
 
    	
 
    
	
“TENANT”
    	
CORESITE   ONE WILSHIRE, L.L.C.,
    
	
 
    	
a   Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Thomas M. Ray
    
	
 
    	
Name:   
    	
Thomas   Ray
    
	
 
    	
Its:   
    	
President
    
	
 
    	
 
    	
 
    
	
 
    	
Date:   
    	
January   10, 2013
    
				

 

CONSENT BY MASTER LANDLORD

 

The undersigned, as Master Landlord of the Master Lease referenced above, consents to the foregoing First Amendment to Lease and all of the terms and provisions thereof, and agrees that (i) all references in the Lease to the “Lease” (including, without limitation in the Master Landlord’s Consent set forth immediately below the Landlord’s and Tenant’s signatures on the Lease) shall mean the original Lease dated August 1, 2007 between Landlord and Tenant, as amended by the foregoing First Amendment to Lease, and (ii) all references in the Master Lease to the “CRG Sublease” shall mean the original Lease dated August 1, 2007 between Landlord and Tenant, as amended by the foregoing First Amendment to Lease.

 

	
“MASTER  LANDLORD”
    	
HINES REIT ONE WILSHIRE LP,
    
	
 
    	
a Delaware limited partnership
    
	
 
    	
 
    
	
 
    	
By: Hines REIT One Wilshire GP   LLC,
    
	
 
    	
a Delaware limited liability   company
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/   Edmund Donaldson
    
	
 
    	
Name: 
    	
Edmund   Donaldson
    
	
 
    	
Its: 
    	
Manager
    
	
 
    	
 
    
	
 
    	
Date:
    	
January   10, 2013
    
				

 

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EXHIBIT F

 

New Exhibit F

 

Tap Rating

 

	
 
    	
 
    	
 
    	
 
    	
Column C
    	
 
    	
Column D
    	
 
    	
Column E
    
	
Column A
   Applicable Riser
    	
 
    	
Column B
    Applicable Generator
    	
 
    	
Applicable Automatic
   Transfer Switch
    	
 
    	
Riser Tap
   Rating
    	
 
    	
Generator
   Tap Rating
    
	
DS3U1
    	
 
    	
Generator No. 1
    	
 
    	
MMR/ATS-9/SE
    	
 
    	
150
    	
 
    	
200
    
	
DS3U1
    	
 
    	
Generator No. 2
    	
 
    	
MMR/ATS-10/NE
    	
 
    	
150
    	
 
    	
200
    
	
DS3U1
    	
 
    	
Generator No. 6
    	
 
    	
MMR4- ATS 14
    	
 
    	
225
    	
 
    	
225
    
	
U4
    	
 
    	
Generator No. 4
    	
 
    	
MMR/ATS-12/S.FANRM
    	
 
    	
200
    	
 
    	
225
    
	
U4
    	
 
    	
Generator No. 4
    	
 
    	
MMR4-ATS 13
    	
 
    	
400
    	
 
    	
400
    

 

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EXHIBIT F

 

New Exhibit F

 

Allocation of Power per Riser and Generator

 

	
 
    	
 
    	
Column A
    	
 
    	
Column B
    
	
 
    	
 
    	
Power per Riser (in amps)
    	
 
    	
Power per Generator (in amps)
    
	
 
    	
 
    	
DS3U1
    	
 
    	
DS30U1
    	
 
    	
U3
    	
 
    	
U4
    	
 
    	
U2
    	
 
    	
No. 1
    	
 
    	
No. 2
    	
 
    	
No. 3
    	
 
    	
No. 4
    	
 
    	
No. 6
    	
 
    	
No. 9
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
1
    	
 
    	
145
    	
 
    	
0
    	
 
    	
0
    	
 
    	
221
    	
 
    	
0
    	
 
    	
34
    	
 
    	
52
    	
 
    	
0
    	
 
    	
221
    	
 
    	
59
    	
 
    	
0
    
	
2
    	
 
    	
Maximum Building Power Amount: 366 amps
    	
 
    	
Maximum Generator Power Amount: 366 amps
    

 

Note:  Amounts shown on this page 2 includes Power for the Premises, only

 

2Exhibit 10.1

 

CONSULTING AGREEMENT

 

This consulting agreement (the "Agreement")
is effective as of November, 2010 (the "Effective Date"), by and among Alcobra Ltd., an Israeli company, of 65
Rothschild Ave, Tel Aviv, Israel (the "Company") and Adler Consulting LLC, of 98 Farbrook Drive, Short Hills, NJ 07078
(the "Consultant").

 

WHEREAS The Company is a specialty pharmaceutical company engaged
in the development and re-purposing of the cognitive drug Metadoxine;

 

WHEREAS The Consultant declares that he owns the skills and
experience necessary to render the Services (as defined therein); and

 

WHEREAS The Company wishes to engage the Consultant as an independent
contractor to render the Services as will be instructed in advance by the Company, all upon the terms and conditions set forth
herein;

 

NOW, THEREFORE, it is hereby agreed as follows:

 

		1.	Term; Termination. This Agreement shall commence as of the Effective Date and shall continue for a period of twenty
four (24) months unless earlier terminated by either party for any reason whatsoever with a thirty (30) days prior written notice
(the "Consulting Term"). In addition, each party may terminate this Agreement immediately in case of a breach
by the other party of any provision herein which had not been corrected within fourteen (14) days from the date on which the breaching
party was notified of said breach.

 

		2.	The Services. During the Consulting Term, Consultant shall provide advice, knowledge and know-how to the Company in
assisting the Company with its clinical development planning (the "Services"). Consultant shall be required to
provide the Services as agreed between Consultant and the Company, in accordance with Company's needs from time to time. The dates
and places to perform the Services shall be coordinated between the Consultant and the Company. The Consultant shall utilize the
highest professional skill, diligence, ethics and care to ensure that the Services are performed to the reasonable satisfaction
of the Company and to provide the expertise required in connection with such Services. Consultant shall furnish the Company with
such reports concerning its activities as the Company may request from time to time.

 

		3.	Consideration. As sole compensation for the Services:

 

		3.1.	Company shall pay Consultant an hourly fee at the rate of US $500 per hour (the "Hourly Fee"). Anything to
the contrary above notwithstanding, in the event that the parties will agree, on a case by case basis, that the Services will be
provided through Consultant attending conventions, meetings, etc. designated by the Company, Consultant shall be entitled, instead
of the Hourly Fee, to a fixed daily fee of US $2,500 (the "Daily Fee"). All amounts paid to Consultant are exclusive
of Value Added Tax, which shall be paid to Consultant, if applicable, against provision of a value Added Tax Invoice (the Hourly
Fee and the Daily Fee, as applicable, the "Consulting Fee"). Company shall pay Consultant in accordance with this
Section 3.1 within ten (10) days after the end of each calendar month for all services performed by Consultant during such month.

 

    	 

    	 

    

 

		3.2.	The Consulting Fee constitutes the full and final consideration for the Services, and Consultant performing the Services, shall
not be entitled to any additional consideration, of any form, for the Services, with the exception of reimbursement of reasonable
out-of-pocket expenses incurred by Consultant in the performance of the Services ("Expenses") as shall be approved
by the Company's Chief Executive Officer in advance in writing. Such expenses shall be invoiced by the Consultant and shall be
paid together with the Consulting Fee. By executing this Agreement, Consultant acknowledges and agrees that as a service provider
to the Company, it is not entitled to receive from the Company any social benefits (including without limitation, paid vacation
days, paid sick leave, severance payments, pension funds, etc.).

 

		3.3.	Consultant shall bear any and all United States taxes imposed on any payments made to Consultant pursuant to this Agreement,
including taxes on Consultant's income. Company shall bear any and all Israeli taxes (including, without limitation, value added
taxes and sales taxes) imposed in connection with any payments made pursuant to this Agreement. 1.

 

		4.	Confidentiality; Inventions. Consultant agrees to the terms and conditions with respect to Company's confidential information
set forth in Exhibit A.

 

		5.	Independent Contractor.

 

		5.1.	Consultant agrees and acknowledges that he is performing the Services hereunder as an independent contractor and that no employer-employee
relationship exists or will exist between Consultant and Company.

 

		5.2.	Consultant is estopped from making any claim regarding the existence of employer-employee relations between Consultant and
the Company.

 

		6.	Representations by Consultant. Each party represents that the execution and delivery of this Agreement and the fulfillment
of the terms hereof (i) will not constitute a default under or conflict with any agreement or other instrument to which he or it
is a party or by which he or it is bound; and (ii) will not result in a breach of any confidentiality undertaking to any third
party,

 

		7.	LIMITATION OF LIABILITY: DISCLAIMERS: The parties understand and agree that Consultant makes no express or implied warranties
with respect to the Services or any deliverables provided by Consultant, including but not limited to warranties of merchantability,
infringement or fitness for a particular purpose or use. In no event shall Consultant be liable for indirect, special, punitive,
direct or consequential damages (including, without limitation, lost profits or goodwill or cost of cover) in connection with this
Agreement, the Services or any deliverables provided by Consultant, however caused and under any theory of liability, whether or
not advised of the possibility of such damages, and notwithstanding any failure of essential purpose of any limited remedy. In
no event shall the aggregate liability of Consultant in connection with any and all claims arising out of this Agreement, the Services
or any deliverables provided by Consultant exceed the aggregate amount paid by the Company to Consultant pursuant to this Agreement.

 

    	2

    	 

    

 

		8.	Miscellaneous. This Agreement constitutes the entire understanding between the parties with respect to the matters referred
to herein. This Agreement shall be governed by the laws of the State of New York, excluding its conflict of law rules, and the
courts of New York, New York, shall have exclusive jurisdiction over the parties. This Agreement may not be assigned by either
party. This Agreement may not be amended or modified, except by the written consent of both parties hereto. No failure or delay
on the part of any party hereto in exercising any right, power or remedy hereunder shall operate as a waiver thereof. Headings
to Sections herein are for the convenience of the parties only, and are not intended to be or to affect the meaning or interpretation
of this Agreement. In the event that any covenant, condition or other provision contained in this Agreement is held to be invalid,
void or illegal by any court of competent jurisdiction, the same shall be deemed severable from the remainder thereof, and shall
in no way affect, impair or invalidate any other covenant, condition or other provision therein contained. All notices required
to be delivered under this Agreement shall be effective only if in writing and shall be deemed given when received by the party
to whom notice is required to be given and shall be delivered personally, by registered mail, by fax or by means of electronic
communication.

 

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

 

	Alcobra Ltd.	 	Adler Consulting LLC
	 	 	 
	By:	/s/ Yaron Daniely	 	By:	/s/ Leonard Adler
	 	 	 
	Name: Yaron Daniely, PhD MBA	 	Name: Leonard Adler
	 	 	 
	Title: CEO	 	Title: Managing Member, Adler Consulting LLC
	 	 	 
	Date: January 6, 2011	 	Date: January 5, 2011

 

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Exhibit
A

 

To
the Personal Consulting Agreement by and between

 

Alcobra
Ltd. and the Consultant whose name is set forth herein

 

General 

 

		1.	Capitalized terms herein shall have the meanings ascribed to them in the Agreement to which this Exhibit is attached (the "Agreement").
For purposes of any undertakings of the Consultant toward the Company, the term Company shall include any subsidiary, parent company
and affiliate of the Company.. The Consultant's obligations and representations and the Company's rights under this Exhibit shall
apply as of the date Consultant began to provide Services to the Company, regardless of the date of execution of the Agreement.

 

Confidentiality; Proprietary Information 

 

		2.	"Proprietary Information" means confidential and proprietary information concerning the business and financial
activities of the Company, including patents, patent applications, trademarks, copyrights and other intellectual property, and
information relating to the same, technologies and products (actual or planned), inventions, research and development activities,
inventions, trade secrets and industrial secrets, and also confidential commercial information such as investments, investors,
consultants, customers, suppliers, marketing plans, whether documentary, written, oral or computer generated. Proprietary Information
shall also include information of the same nature which the Company may obtain or receive from third parties.

 

		3.	Proprietary Information shall be deemed to include any and all proprietary information disclosed by or on behalf of the Company
and irrespective of form but excluding information that (i) was known to Consultant prior to Consultant's association with the
Company; (ii) is or shall become part of the public knowledge except as a result of the breach of the Agreement or this Exhibit
by Consultant; (iii) shall have been received by Consultant not under an obligation of confidentiality from a third party, (iv)
is independently developed by Consultant without reference to the Proprietary Information;; or (v) reflects information and data
generally known in the industries or trades in which the Company and/or Consultant operates.

 

		4.	Consultant recognizes that the Company received and will receive confidential or proprietary information from third parties,
subject to a duty on the Company's part to maintain the confidentiality of such information and to use it only for certain limited
purposes. In connection with such duties, such information shall be deemed Proprietary Information hereunder.

 

    	4

    	 

    

 

		5.	Consultant agrees that all Proprietary Information, and patents, trademarks, copyrights and other intellectual property and
ownership rights in connection therewith are and shall remain at all times the sole property of the Company and its assigns. At
all times, both during Consultant's engagement with the Company and after the termination of the engagement between the parties,
Consultant will keep confidence all Proprietary Information, and will not use or disclose any Proprietary Information without the
prior written consent of the Company, except as may be necessary in the ordinary course of performing Consultant's duties under
the Agreement.

 

		6.	Upon the Company's request and upon termination of Consultant's engagement with the Company, for any reason whatsoever, Consultant
will promptly deliver to the Company all documents and materials of any nature containing Proprietary Information, pertaining to
Consultant's engagement with the Company, and will not take any documents or materials or copies thereof containing any Proprietary
Information.

 

		7.	Consultant's undertakings set forth in Section 1 through Section 6 shall remain in full force and effect after termination
of the Agreement or any renewal thereof.

 

		8.	The Consultant agrees and undertakes not to disclose to the Company any confidential information of any third party and, in
the framework of its engagement with the Company, not to make any use of any intellectual property rights of any third party.

 

		9.	The Consultant agrees that any work performed by the Consultant with respect to Company's products or potential products, including,
without limitation, any improvement and modifications to such products is owned by the Company and the Consultant has no ownership
rights with respect thereto and Consultant hereby assigns any such rights (including, without limitation, all patents) it may have
to such improvements and modifications to the Company. However, the Company acknowledges and agrees that, notwithstanding the foregoing,
the Company has no rights, other than a limited license pursuant to any licensing agreement that Company may enter into with NYU
Medical Center, to any ratings scales or training materials with respect to such ratings scales or to any improvements and modifications
made to such scales and training materials, even if made while or in connection with providing services to the Company.

 

Remedies for Breach 

 

		10.	Consultant acknowledges that the legal remedies for breach of the provisions of this Exhibit may be found inadequate and therefore
agrees that, in addition to all of the remedies available to Company in the event of a breach or a threatened breach of any of
such provisions, the Company may also, in addition to any other remedies which may be available under applicable law, obtain temporary,
preliminary and permanent injunctions against any and all such actions.

 

Intent of Parties 

 

		11.	Consultant recognizes and agrees: (i) that this Exhibit is necessary and essential to protect the business of the Company and
to realize and derive all the benefits, rights and expectations of conducting Company's business; and (ii) that good and valuable
consideration exists under the Agreement, for Consultant's agreement to be bound by the provisions of this Exhibit.

 

    	5

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