Document:

Exhibit 10.6

BLUE APRON HOLDINGS, INC.

 

RESTRICTED STOCK AWARD AGREEMENT

 

pursuant to the

 

BLUE APRON HOLDINGS, INC. 2012 EQUITY INCENTIVE PLAN

 

This RESTRICTED STOCK AWARD AGREEMENT (the “Agreement”) is made as of [      ], by and between Blue Apron Holdings, Inc., a Delaware corporation (the “Company”), and [      ] (the “Recipient”) pursuant to the terms and conditions of the Blue Apron Holdings, Inc. 2012 Equity Incentive Plan (the “Plan”).  Capitalized terms used but not otherwise defined herein shall have the meanings set forth in the Plan.  The Recipient agrees to be bound by the terms and conditions of the Plan, which are incorporated herein by reference and which control in the case of a conflict with this Agreement, except as otherwise provided in the Plan.

 

In consideration of the mutual covenants and representations set forth below, the Company and the Recipient agree as follows:

 

1.                                      Issuance of Shares. Subject to the terms and conditions of this Agreement, the Company agrees to issue to the Recipient, and the Recipient accepts, [      ] shares of the Company’s Class B Common Stock, par value $0.0001 per share (the “Shares”), in consideration for the future performance of services.

 

2.                                      Issuance. The issuance of the Shares shall occur at a closing (the “Closing”) to be held on the date first set forth above, or at any other time mutually agreed upon by the Company and the Recipient. The Closing will take place at the principal office of the Company or at such other place as shall be designated by the Company. At the Closing, the Recipient shall execute this Agreement and the Company will issue, as promptly thereafter as practicable, a stock certificate, registered in the name of the Recipient, reflecting the Shares.

 

3.                                      Forfeiture.   In the event the Recipient ceases to be an employee, consultant, advisor, officer or director of the Company (a “Service Provider”) for any or no reason, including, without limitation, by reason of the Recipient’s death or disability (as defined in Section 22(e)(3) of the Internal Revenue Code of 1986, as amended (the “Code”), “Disability”), resignation or involuntary termination, any Shares which have not yet vested (the “Unvested Shares”) shall immediately and automatically be forfeited to the Company in exchange for no consideration.  Upon forfeiture of the Unvested Shares, the Company shall become the legal and beneficial owner of the Unvested Shares and all rights and interests therein or relating thereto, and the Company shall have the right to retain and transfer to its own name the number of Unvested Shares being forfeited to the Company.

 

4.                                      Release of Shares from Forfeiture; Vesting.

 

A.                                    Vesting. So long as the Recipient’s continuous status as a Service Provider has not yet terminated in each such instance, the forfeiture provisions set forth in Section 3 on 1/4th of the total number of Shares shall lapse on [      ], and 1/36th of the total number of remaining Shares shall be released from the forfeiture provisions set forth in Section 3 on the last day of each calendar month after [      ], until all Shares have been released from the forfeiture provisions on [      ].

 

B.                                    Acceleration upon a Change in Control. In the event of a Change in Control (as defined below), 100% of the total number of Shares that have not been released from the forfeiture

 

 

provisions shall be immediately vested and released from the forfeiture provisions, provided that the Recipient’s continuous status as a Service Provider has not been terminated prior to such time.

 

C.                                    “Change in Control” Definition. For purposes of this Agreement, a “Change in Control” shall have the meaning set forth in the Plan.

 

D.                                    Delivery of Released Shares. Subject to the provisions of Section 7, the Shares which have been released from the forfeiture provisions shall be delivered to the Recipient at the Recipient’s request.

 

5.                                      Restrictions on Transfer.

 

A.                                    Investment Representations and Legend Requirements. The Recipient hereby makes the investment representations listed on Exhibit A to the Company as of the date of this Agreement and as of the date of the Closing, and agrees that such representations are incorporated into this Agreement by this reference, such that the Company may rely on them in issuing the Shares. The Recipient understands and agrees that the Company shall cause the legends set forth below, or substantially equivalent legends, to be placed upon any certificate(s) evidencing ownership of the Shares, together with any other legends that may be required by the Company or by applicable state or federal securities laws:

 

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”) AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR, IN THE OPINION OF COUNSEL SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION OTHERWISE COMPLIES WITH THE ACT.

 

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER, A RIGHT OF FIRST REFUSAL, A LOCK-UP PERIOD IN THE EVENT OF A PUBLIC OFFERING AND FORFEITURE PROVISIONS AS SET FORTH IN THE RESTRICTED STOCK AWARD AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER. SUCH TRANSFER RESTRICTIONS, RIGHT OF FIRST REFUSAL, LOCK-UP PERIOD AND FORFEITURE PROVISIONS ARE BINDING ON TRANSFEREES OF THESE SHARES.

 

B.                                    Stop-Transfer Notices. The Recipient agrees that to ensure compliance with the restrictions referred to herein, the Company may issue appropriate “stop transfer” instructions to its transfer agent, if any, and that, if the Company transfers its own securities, it may make appropriate notations to the same effect in its own records.

 

C.                                    Refusal to Transfer. The Company shall not be required (i) to transfer on its books any Shares that have been sold or otherwise transferred in violation of any of the provisions of this Agreement or (ii) to treat as owner of such Shares or to accord the right to vote or pay dividends to any Recipient or other transferee to whom such Shares shall have been so transferred.

 

 

D.                                    Lock-Up Period. The Recipient hereby agrees that the Recipient shall not sell, offer, pledge, contract to sell, grant any option or contract to purchase, purchase any option or contract to sell, grant any right or warrant to purchase, lend or otherwise transfer or encumber, directly or indirectly, any Shares or other securities of the Company, nor shall the Recipient enter into any swap, hedging or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of any Shares or other securities of the Company, during the period from the filing of the first registration statement of the Company filed under the Securities Act of 1933, as amended (the “Securities Act”), that includes securities to be sold on behalf of the Company to the public in an underwritten public offering under the Securities Act through the end of the 180-day period following the effective date of such registration statement (or such other period as may be requested by the Company or the underwriters to accommodate regulatory restrictions on (i) the publication or other distribution of research reports and (ii) analyst recommendations and opinions, including, but not limited to, the restrictions contained in NASD Rule 2711(f)(4) or NYSE Rule 472(f)(4), or any successor provisions or amendments thereto). The Recipient further agrees, if so requested by the Company or any representative of its underwriters, to enter into such underwriter’s standard form of “lockup” or “market standoff” agreement in a form satisfactory to the Company and such underwriter. The Company may impose stop-transfer instructions with respect to securities subject to the foregoing restrictions until the end of any such restriction period.

 

E.                                     Unvested Shares. No Unvested Shares subject to the forfeiture provisions contained in Section 3 of this Agreement, nor any beneficial interest in such Shares, shall be sold, gifted, transferred, encumbered or otherwise disposed of in any way (whether by operation of law or otherwise) by the Recipient, other than as expressly permitted or required by Section 3.

 

F.                                      Released Shares. No Shares issued pursuant to this Agreement, nor any beneficial interest in such Shares, shall be sold, transferred, encumbered or otherwise disposed of in any way (whether by operation of law or otherwise) by the Recipient or any subsequent transferee, other than in compliance with the Company’s right of first refusal provisions contained in Section 6 of this Agreement or any other restriction contained in the Plan or the Company’s Certificate of Incorporation or bylaws.

 

6.                                      Company’s Right of First Refusal. Before any Shares acquired by the Recipient pursuant to this Agreement (or any beneficial interest in such Shares) may be sold, transferred, encumbered or otherwise disposed of in any way (whether by operation of law or otherwise) by the Recipient or any subsequent transferee (each a “Holder”), such Holder must first offer such Shares or beneficial interest to the Company and/or its assignee(s) as follows:

 

A.                                    Notice of Proposed Transfer. The Holder shall deliver to the Company a written notice stating: (i) the Holder’s bona fide intention to sell or otherwise transfer the Shares; (ii) the name of each proposed transferee; (iii) the number of Shares to be transferred to each proposed transferee; (iv) the bona fide cash price or other consideration for which the Holder proposes to transfer the Shares; and (v) that by delivering the notice, the Holder offers all such Shares to the Company and/or its assignee(s) pursuant to this section and on the same terms described in the notice.

 

B.                                    Exercise of Right of First Refusal. At any time within 30 days after receipt of the Holder’s notice, the Company and/or its assignee(s) may, by giving written notice to the Holder, elect to purchase all, but not less than all, of the Shares proposed to be transferred to any one or more of the proposed transferees, at the purchase price determined in accordance with Section 6.C.

 

C.                                    Purchase Price. The purchase price for the Shares purchased by the Company and/or its assignee(s) under this section shall be the price listed in 

 

 

the Holder’s notice. If the price listed in the Holder’s notice includes consideration other than cash, the cash equivalent value of the non-cash consideration shall be determined by the Board of Directors of the Company in its sole discretion.

 

D.                                    Payment. Payment of the purchase price shall be made, at the option of the Company and/or its assignee(s), in cash (by check), by cancellation of all or a portion of any outstanding indebtedness of the Holder to the Company and/or its assignee(s), or by any combination thereof within 30 days after receipt by the Company of the Holder’s notice (or at such later date as is called for by such notice).

 

E.                                     Holder’s Right to Transfer. If all of the Shares proposed in the notice to be transferred to a given proposed transferee are not purchased by the Company and/or its assignee(s) as provided in this section, then the Holder may sell or otherwise transfer such Shares to that proposed transferee; provided that: (i) the transfer is made only on the terms provided for in the notice, with the exception of the purchase price, which may be either the price listed in the notice or any higher price; (ii) such transfer is consummated within 60 days after the date the notice is delivered to the Company; (iii) the transfer is effected in accordance with any applicable securities laws, and if requested by the Company, the Holder shall have delivered an opinion of counsel acceptable to the Company to that effect; and (iv) the proposed transferee agrees in writing to receive and hold the Shares so transferred subject to all of the provisions of this Agreement, including but not limited to this section, and there shall be no further transfer of such Shares except in accordance with the terms of this section. If any Shares described in a notice are not transferred to the proposed transferee within the period provided above, then before any such Shares may be transferred, a new notice shall be given to the Company, and the Company and/or its assignees shall again be offered the right of first refusal described in this section.

 

F.                                      Exception for Certain Family Transfers. Notwithstanding anything to the contrary contained elsewhere in this section, the transfer of any or all of the Shares during the Holder’s lifetime or on the Holder’s death by will or intestacy to (i) the Holder’s spouse or domestic partner; (ii) the Holder’s lineal descendants or antecedents, siblings, aunts, uncles, cousins, nieces and nephews (including adoptive relationships and step relationships), and their spouses or domestic partners; (iii) the lineal descendants or antecedents, siblings, cousins, aunts, uncles, nieces and nephews of Holder’s spouse or domestic partner (including adoptive relationships and step relationships), and their spouses or domestic partners; and (iv) a trust or other similar estate planning vehicle for the benefit of the Holder or any such person, shall be exempt from the provisions of this section; provided that, in each such case, the transferee agrees in writing to receive and hold the Shares so transferred subject to all of the provisions of this Agreement, including but not limited to this section, and there shall be no further transfer of such Shares except in accordance with the terms of this section; and provided further, that without the prior written consent of the Company, which may be withheld in the sole discretion of the Company, no more than three transfers may be made pursuant to this section, including all transfers by the Holder and all transfers by any transferee.  For purposes of this Agreement, a person will be deemed to be a “domestic partner” of another person if the two persons (1) reside in the same residence and plan to do so indefinitely, (2) have resided together for at least one (1) year, (3) are each at least 18 years of age and mentally competent to consent to contract, (4) are not blood relatives any closer than would prohibit legal marriage in the state in which they reside, (5) are financially interdependent, as demonstrated to the reasonable satisfaction of the Company and (6) have each been the sole spouse equivalent of the other for the year prior to the transfer and plan to remain so indefinitely; provided that a person will not be considered a domestic partner if he or she is married to another person or has any other spouse equivalent.

 

G.                                    Termination of Right of First Refusal. The right of first refusal contained in this section shall terminate as to all Shares purchased hereunder upon the earlier of: (i) the closing date of the first sale of Class B Common Stock of the Company to the general public pursuant to a registration statement filed with and declared effective by the Securities and Exchange Commission under the 

 

 

Securities Act, and (ii) the closing date of a Change in Control pursuant to which the holders of the outstanding voting securities of the Company receive securities of a class registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended.

 

7.                                      Escrow.

 

A.                                    Deposit. As security for the faithful performance of this Agreement, the Recipient agrees, immediately upon receipt of the certificate(s) evidencing the Shares, to deliver such certificate(s), together with a stock power in the form of Exhibit B attached to this Agreement, executed by the Recipient and by the Recipient’s spouse, if any (with the date and number of Shares left blank), to the Secretary of the Company or to another designee of the Company (the “Escrow Agent”). These documents shall be held by the Escrow Agent pursuant to the Joint Escrow Instructions of the Company and the Recipient set forth in Exhibit C attached to this Agreement, which instructions are incorporated into this Agreement by this reference, and which instructions shall also be delivered to the Escrow Agent after the Closing.

 

B.                                    Rights in Escrow Shares. Subject to the terms hereof, the Recipient shall have all the rights of a stockholder with respect to such Shares while they are held in escrow, including without limitation, the right to vote the Shares. If, from time to time while any of the Shares remain Unvested Shares, there is (i) any stock dividend, stock split or other change in the Shares, (ii) any dividend of cash or other property on the Shares, or (iii) any merger or sale of all or substantially all of the assets or other acquisition of the Company, any and all new, substituted or additional securities or cash or other consideration to which the Recipient is entitled by reason of the Recipient’s ownership of the Shares shall immediately become subject to this escrow, deposited with the Escrow Agent and included thereafter as “Shares” for purposes of this Agreement and the vesting and forfeiture provisions.

 

8.                                      Tax Consequences. The Recipient has reviewed with the Recipient’s own tax advisors the federal, state, local and foreign tax consequences of this investment and the transactions contemplated by this Agreement. The Recipient is relying solely on such advisors and not on any statements or representations of the Company or any of its agents. The Recipient understands that the Recipient (and not the Company) shall be responsible for any tax liability that may arise as a result of the transactions contemplated by this Agreement. The Recipient understands that Section 83 of the Code, taxes as ordinary income the difference between the purchase price, if any, for the Shares and the fair market value of the Shares as of the date any restrictions on the Shares lapse. In this context, “restriction” includes the forfeiture provisions set forth in Section 3. The Recipient understands that the Recipient may elect to be taxed at the time the Shares are granted rather than when and as the forfeiture provisions lapse by filing an election under Section 83(b) of the Code with the IRS within 30 days from the date of grant. THE FORM FOR MAKING THIS SECTION 83(B) ELECTION IS ATTACHED TO THIS AGREEMENT AS EXHIBIT D AND THE RECIPIENT (AND NOT THE COMPANY OR ANY OF ITS AGENTS) SHALL BE SOLELY RESPONSIBLE FOR APPROPRIATELY FILING SUCH FORM, EVEN IF THE RECIPIENT REQUESTS THE COMPANY OR ITS AGENTS TO MAKE THIS FILING ON THE RECIPIENT’S BEHALF.

 

9.                                      General Provisions.

 

A.                                    Choice of Law. This Agreement shall be governed by the internal substantive laws, but not the choice of law rules, of the State of Delaware.  Recipient hereby expressly consents to the personal and exclusive jurisdiction and venue of the state and federal courts located in the Borough of Manhattan, in New York City, New York, for any lawsuit arising under this Agreement.

 

 

B.                                    Integration. This Agreement, including all exhibits hereto, and the Plan represent the entire agreement between the parties with respect to the issuance of the Shares to the Recipient and supersedes and replaces any and all prior written or oral agreements regarding the subject matter of this Agreement including, but not limited to, any representations made during any interviews, relocation discussions or negotiations whether written or oral.

 

C.                                    Notices. Any notice, demand, offer, request or other communication required or permitted to be given by either the Company or the Recipient pursuant to the terms of this Agreement shall be in writing and shall be deemed effectively given the earlier of (i) when received, (ii) when delivered personally, (iii) one business day after being delivered by facsimile (with receipt of appropriate confirmation), (iv) one business day after being deposited with an overnight courier service or (v) four days after being deposited in the U.S. mail, First Class with postage prepaid and return receipt requested, and addressed to the parties at the addresses provided to the Company (which the Company agrees to disclose to the other parties upon request) or such other address as a party may request by notifying the other in writing.

 

D.                                    Successors. Any successor to the Company (whether direct or indirect and whether by purchase, merger, consolidation, liquidation or otherwise) to all or substantially all of the Company’s business and/or assets shall assume the obligations under this Agreement and agree expressly to perform the obligations under this Agreement in the same manner and to the same extent as the Company would be required to perform such obligations in the absence of a succession. For all purposes under this Agreement, the term “Company” shall include any successor to the Company’s business and/or assets which executes and delivers the assumption agreement described in this section or which becomes bound by the terms of this Agreement by operation of law. Subject to the restrictions on transfer set forth in this Agreement, this Agreement shall be binding upon the Recipient and his or her heirs, executors, administrators, successors and assigns.

 

E.                                     Assignment; Transfers. Except as set forth in this Agreement, this Agreement, and any and all rights, duties and obligations hereunder, shall not be assigned, transferred, delegated or sublicensed by the Recipient without the prior written consent of the Company. Any attempt by the Recipient without such consent to assign, transfer, delegate or sublicense any rights, duties or obligations that arise under this Agreement shall be void. Except as set forth in this Agreement, any transfers in violation of any restriction upon transfer contained in any section of this Agreement shall be void, unless such restriction is waived in accordance with the terms of this Agreement.

 

F.                                      Waiver. Either party’s failure to enforce any provision of this Agreement shall not in any way be construed as a waiver of any such provision, nor prevent that party from thereafter enforcing any other provision of this Agreement. The rights granted both parties hereunder are cumulative and shall not constitute a waiver of either party’s right to assert any other legal remedy available to it.

 

G.                                    Recipient Investment Representations and Further Documents. The Recipient agrees upon request to execute any further documents or instruments necessary or reasonably desirable in the view of the Company to carry out the purposes or intent of this Agreement, including (but not limited to) the applicable exhibits and attachments to this Agreement.

 

H.                                   Severability. Should any provision of this Agreement be found to be illegal or unenforceable, the other provisions shall nevertheless remain effective and shall remain enforceable to the greatest extent permitted by law.

 

I.                                        Rights as Stockholder. Subject to the terms and conditions of this Agreement, the Recipient shall have all of the rights of a stockholder of the Company with respect to the Shares from 

 

 

and after the date that the Recipient delivers a fully executed copy of this Agreement (including the applicable exhibits and attachments to this Agreement), and until such time as the Recipient disposes of the Shares in accordance with this Agreement. Upon such transfer, the Recipient shall have no further rights as a holder of the Shares so issued except (in the case of a transfer to the Company) the right to receive payment for the Shares so issued in accordance with the provisions of this Agreement, and the Recipient shall forthwith cause the certificate(s) evidencing the Shares so issued to be surrendered to the Company for transfer or cancellation.

 

J.                                        Adjustment for Stock Split. All references to the number of Shares in this Agreement shall be adjusted to reflect any stock split, stock dividend or other change in the Shares which may be made after the date of this Agreement.

 

K.                                    Service Provider at Will. THE RECIPIENT ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO THIS AGREEMENT IS EARNED ONLY BY CONTINUING SERVICE AS A SERVICE PROVIDER AT WILL (AND NOT THROUGH THE ACT OF BEING HIRED OR BEING ISSUED SHARES HEREUNDER). THE RECIPIENT FURTHER ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR THE VESTING PERIOD, OR FOR ANY PERIOD AT ALL, AND SHALL NOT INTERFERE WITH THE RECIPIENT’S RIGHT OR THE COMPANY’S RIGHT TO TERMINATE THE RECIPIENT’S RELATIONSHIP WITH THE COMPANY AT ANY TIME, WITH OR WITHOUT CAUSE OR NOTICE.

 

L.                                     Reliance on Counsel and Advisors. The Recipient acknowledges that he or she has had the opportunity to review this Agreement, including all attachments hereto, and the transactions contemplated by this Agreement with his or her own legal counsel, tax advisors and other advisors. The Recipient is relying solely on his or her own counsel and advisors and not on any statements or representations of the Company or its agents for legal or other advice with respect to this investment or the transactions contemplated by this Agreement.

 

M.                                 Counterparts. This Agreement may be executed in one or more counterparts, each of which will be deemed an original, but all of which together will constitute one and the same agreement. Facsimile copies of signed signature pages shall be binding originals.

 

The parties represent that they have read this Agreement in its entirety, have had an opportunity to obtain the advice of counsel prior to executing this Agreement and fully understand this Agreement. The Recipient agrees to notify the Company of any change in his or her address below.

 

	
RECIPIENT
    	
 
    	
BLUE APRON HOLDINGS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature
    	
 
    	
Signature
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Matthew Salzberg
    
	
Print Name
    	
 
    	
Print Name
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
President &   CEO
    
	
 
    	
 
    	
Print Title
    
	
 
    	
 
    	
 
    

 

 

EXHIBIT A

 

INVESTMENT REPRESENTATION STATEMENT

 

	
RECIPIENT
    	
:
    	
[       ]
    
	
 
    	
 
    	
 
    
	
COMPANY
    	
:
    	
Blue Apron Holdings, Inc.
    
	
 
    	
 
    	
 
    
	
SECURITY
    	
:
    	
Class B Common Stock
    
	
 
    	
 
    	
 
    
	
AMOUNT
    	
:
    	
[      ] shares 
    
	
 
    	
 
    	
 
    
	
DATE
    	
:
    	
[       ]
    

 

In connection with the issuance of the above-listed shares, I, the undersigned Recipient, represent to the Company as follows:

 

1.                                      The Company may rely on these representations. I understand that the Company’s issuance of the shares to me has not been registered under the Securities Act of 1933, as amended (the “Securities Act”), because the Company believes, relying in part on my representations in this document, that an exemption from such registration requirement is available for such issuance. I understand that the availability of this exemption depends upon the representations I am making to the Company in this document being true and correct.

 

2.                                      I am acquiring for investment. I am acquiring the shares solely for investment purposes, and not for further distribution. My entire legal and beneficial ownership interest in the shares is being acquired and shall be held solely for my account, except to the extent I intend to hold the shares jointly with my spouse. I am not a party to, and do not presently intend to enter into, any contract or other arrangement with any other person or entity involving the resale, transfer, grant of participation with respect to or other distribution of any of the shares. My investment intent is not limited to my present intention to hold the shares for the minimum capital gains period specified under any applicable tax law, for a deferred sale, for a specified increase or decrease in the market price of the shares, or for any other fixed period in the future.

 

3.                                      I can protect my own interests. I can properly evaluate the merits and risks of an investment in the shares and can protect my own interests in this regard, whether by reason of my own business and financial expertise, the business and financial expertise of certain professional advisors unaffiliated with the Company with whom I have consulted, or my preexisting business or personal relationship with the Company or any of its officers, directors or controlling persons.

 

4.                                      I am informed about the Company. I am sufficiently aware of the Company’s business affairs and financial condition to reach an informed and knowledgeable decision to acquire the shares. I have had opportunity to discuss the plans, operations and financial condition of the Company with its officers, directors or controlling persons, and have received all information I deem appropriate for assessing the risk of an investment in the shares.

 

 

5.                                      I recognize my economic risk. I realize that the acquisition of the shares involves a high degree of risk, and that the Company’s future prospects are uncertain. I am able to hold the shares indefinitely if required, and am able to bear the loss of my entire investment in the shares.

 

6.                                      I know that the shares are restricted securities. I understand that the shares are “restricted securities” in that the Company’s sale of the shares to me has not been registered under the Securities Act in reliance upon an exemption for non-public offerings. In this regard, I also understand and agree that:

 

A.                                    I must hold the shares indefinitely, unless any subsequent proposed resale by me is registered under the Securities Act, or unless an exemption from registration is otherwise available (such as Rule 144);

 

B.                                    the Company is under no obligation to register any subsequent proposed resale of the shares by me; and

 

C.                                    the certificate evidencing the shares will be imprinted with a legend which prohibits the transfer of the shares unless such transfer is registered or such registration is not required in the opinion of counsel for the Company.

 

7.                                      I am familiar with Rule 144. I am familiar with Rule 144 adopted under the Securities Act, which in some circumstances permits limited public resales of “restricted securities” like the shares acquired from an issuer in a non-public offering. I understand that my ability to sell the shares under Rule 144 in the future is uncertain, and may depend upon, among other things: (i) the availability of certain current public information about the Company; (ii) the resale occurring more than a specified period after my acquisition and full payment (within the meaning of Rule 144) for the shares; and (iii) if I am an affiliate of the Company (A) the sale being made in an unsolicited “broker’s transaction”, transactions directly with a market maker or riskless principal transactions, as those terms are defined under the Securities Exchange Act of 1934, as amended, (B) the amount of shares being sold during any three-month period not exceeding the specified limitations stated in Rule 144, and (C) timely filing of a notice of proposed sale on Form 144, if applicable.

 

8.                                      I know that Rule 144 may never be available. I understand that the requirements of Rule 144 may never be met, and that the shares may never be saleable under the rule. I further understand that at the time I wish to sell the shares, there may be no public market for the Company’s stock upon which to make such a sale, or the current public information requirements of Rule 144 may not be satisfied, either of which may preclude me from selling the shares under Rule 144 even if the relevant holding period had been satisfied.

 

9.                                      I know that I am subject to further restrictions on resale. I understand that in the event Rule 144 is not available to me, any future proposed sale of any of the shares by me will not be possible without prior registration under the Securities Act, compliance with some other registration exemption (which may or may not be available), or each of the following: (i) my written notice to the Company containing detailed information regarding the proposed sale, (ii) my providing an opinion of my counsel to the effect that such sale will not require registration, and (iii) the Company notifying me in writing that its counsel concurs in such opinion. I understand that neither the Company nor its counsel is obligated to provide me with any such opinion. I understand that although Rule 144 is not exclusive, the Staff of the SEC has stated that persons proposing to sell private placement securities other than in a registered offering or pursuant to Rule 144 will have a substantial burden of proof in establishing that an exemption from registration is available for such offers or sales, and that such persons and their respective brokers who participate in such transactions do so at their own risk.

 

2

 

10.                               I know that I may have tax liability due to the uncertain value of the shares. I understand that the Board of Directors believes its valuation of the shares represents a fair appraisal of their worth, but that it remains possible that, with the benefit of hindsight, the Internal Revenue Service may successfully assert that the value of the shares on the date of my acquisition is substantially greater than the Board’s appraisal. I understand that any additional value ascribed to the shares by such an IRS determination will constitute ordinary income to me, and that any additional taxes and interest due as a result will be my sole responsibility payable only by me, and that the Company need not and will not reimburse me for that tax liability.

 

11.                               Residence. The address of my principal residence is set forth on the signature page below.

 

By signing below, I acknowledge my agreement with each of the statements contained in this Investment Representation Statement as of the date first set forth above, and my intent for the Company to rely on such statements in issuing the shares to me.

 

	
 
    	
 
    	
 
    
	
 
    	
 
    	
Recipient’s Signature
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Print Name
    
	
 
    	
 
    	
 
    
	
Address of Recipient’s   principal residence:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

3

 

EXHIBIT B

 

STOCK POWER AND ASSIGNMENT

SEPARATE FROM CERTIFICATE

 

FOR VALUE RECEIVED and pursuant to that certain Restricted Stock Award Agreement dated as of           , 201[   ], the undersigned hereby sells, assigns and transfers unto the Corporate Secretary of Blue Apron Holdings, Inc., a Delaware corporation (the “Company”),            (        ) shares of Company Class B Common Stock, standing in the undersigned’s name on the books of said corporation represented by certificate number         delivered herewith, and does hereby irrevocably constitute and appoint the Corporate Secretary of Company as attorney-in-fact, with full power of substitution, to transfer said stock on the books of said corporation.

 

	
Dated:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(Signature)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(Print Name)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(Spouse’s   Signature, if any)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(Print Name)
    

 

This Assignment Separate From Certificate was executed in conjunction with the terms of a Restricted Stock Award Agreement between the above assignor and the above corporation, dated as of         , 201[   ].

 

INSTRUCTION:  PLEASE DO NOT FILL IN ANY BLANKS OTHER THAN THE SIGNATURE LINE.  THE PURPOSE OF THIS ASSIGNMENT IS TO ENABLE THE COMPANY TO REQUIRE FORFEITURE OF THE SHARES AS SET FORTH IN THE AGREEMENT WITHOUT REQUIRING ADDITIONAL SIGNATURES ON THE PART OF THE RECIPIENT.

 

 

EXHIBIT C

 

JOINT ESCROW INSTRUCTIONS

 

Blue Apron Holdings, Inc.

5 Crosby Street, 3rd Floor

New York, NY 10013

 

Attn: Corporate Secretary

 

Dear Secretary:

 

As Escrow Agent for both Blue Apron Holdings, Inc., a Delaware corporation (the “Company”), and [      ] (the “Recipient”), you are hereby authorized and directed to hold the documents delivered to you pursuant to the terms of that certain Restricted Stock Award Agreement (the “Agreement”), dated as of [      ], to which a copy of these Joint Escrow Instructions is attached, in accordance with the following instructions:

 

1.                                      In the event that the Company and/or any assignee of the Company (referred to collectively for convenience herein as the “Company”) determines that the Unvested Shares are subject to forfeiture, as set forth in the Agreement, the Company shall give to the Recipient and you a written notice specifying the number of shares of stock to be forfeited, and such forfeiture shall happen automatically. The Recipient and the Company hereby irrevocably authorize and direct you to close the transaction contemplated by such notice in accordance with the terms of said notice.

 

2.                                      At the closing, you are directed (a) to date the stock assignments necessary for the transfer in question, (b) to fill in the number of shares being transferred, and (c) to deliver same, together with the certificate evidencing the shares of stock to be transferred, to the Company.

 

3.                                      The Recipient irrevocably authorizes the Company to deposit with you any certificates evidencing shares of stock to be held by you hereunder and any additions and substitutions to said shares as defined in the Agreement. The Recipient does hereby irrevocably constitute and appoint you as his or her attorney-in-fact and agent for the term of this escrow to execute with respect to such securities all documents necessary or appropriate to make such securities negotiable and to complete any transaction herein contemplated. Subject to the provisions of this paragraph 3, the Recipient shall exercise all rights and privileges of a stockholder of the Company while the stock is held by you.

 

4.                                      Upon written request of the Recipient after each successive one-year period from the date of the Agreement, unless the Unvested Shares have been forfeited, you will deliver to the Recipient a certificate or certificates representing so many shares of stock remaining in escrow as are not then subject to forfeiture. On the date that is 95 days after the date the Recipient’s status as a Service Provider (as defined in the Agreement) to the Company terminates, you will deliver to the Recipient a certificate or certificates representing the aggregate number of shares not forfeited to the Company or its assignees pursuant to the Restricted Stock Award Agreement.

 

5.                                      If at the time of termination of this escrow you should have in your possession any documents, securities, or other property belonging to the Recipient, you shall deliver all of same to the Recipient and shall be discharged of all further obligations hereunder.

 

 

6.                                      Your duties hereunder may be altered, amended, modified or revoked only by a writing signed by all of the parties hereto.

 

7.                                      You shall be obligated only for the performance of such duties as are specifically set forth herein and may rely and shall be protected in relying or refraining from acting on any instrument reasonably believed by you to be genuine and to have been signed or presented by the proper party or parties. You shall not be personally liable for any act you may do or omit to do hereunder as Escrow Agent or as attorney-in-fact for the Recipient while acting in good faith and in the exercise of your own good judgment, and any act done or omitted by you pursuant to the advice of your own attorneys shall be conclusive evidence of such good faith.

 

8.                                      The Company and the Recipient hereby jointly and severally expressly agree to indemnify and hold harmless you and your designees against any and all claims, losses, liabilities, damages, deficiencies, costs and expenses, including reasonable attorneys’ fees and expenses of investigation and defense incurred or suffered by you and your designees, directly or indirectly, as a result of any of your actions or omissions or those of your designees while acting in good faith and in the exercise of your judgment under the Agreement, these Joint Escrow Instructions, exhibits hereto or written instructions from the Company or the Recipient hereunder.

 

9.                                      You are hereby expressly authorized to disregard any and all warnings given by any of the parties hereto or by any other person or corporation, excepting only orders or process of courts of law, and are hereby expressly authorized to comply with and obey orders, judgments or decrees of any court. In case you obey or comply with any such order, judgment or decree, you shall not be liable to any of the parties hereto or to any other person, firm or corporation by reason of such compliance, notwithstanding any such order, judgment or decree being subsequently reversed, modified, annulled, set aside, vacated or found to have been entered without jurisdiction.

 

10.                               You shall not be liable in any respect on account of the identity, authorities or rights of the parties executing or delivering or purporting to execute or deliver the Agreement or any documents or papers deposited or called for hereunder.

 

11.                               You shall be entitled to employ such legal counsel and other experts as you may deem necessary properly to advise you in connection with your obligations hereunder, may rely upon the advice of such counsel, and may pay such counsel reasonable compensation therefor. The Company shall reimburse you for any such disbursements.

 

12.                               Your responsibilities as Escrow Agent hereunder shall terminate if you shall resign by written notice to each party. In the event of any such termination, the Company shall appoint a successor Escrow Agent.

 

13.                               You are expressly authorized to delegate your duties as Escrow Agent hereunder to the law firm of Wilmer Cutler Pickering Hale and Dorr LLP or any other law firm, which delegation, if any, may change from time to time and shall survive your resignation as Escrow Agent.

 

14.                               If you reasonably require other or further instruments in connection with these Joint Escrow Instructions or obligations in respect hereto, the necessary parties hereto shall join in furnishing such instruments.

 

15.                               It is understood and agreed that should any dispute arise with respect to the delivery and/or ownership or right of possession of the securities held by you hereunder, you are authorized and directed to retain in your possession without liability to anyone all or any part of said securities until such 

 

 

disputes shall have been settled either by mutual written agreement of the parties concerned or by a final order, decree or judgment of a court of competent jurisdiction after the time for appeal has expired and no appeal has been perfected, but you shall be under no duty whatsoever to institute or defend any such proceedings.

 

16.                               Any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given upon personal delivery or four days following deposit in the United States Post Office, by registered or certified mail with postage and fees prepaid and return receipt requested, addressed to each of the other parties thereunto entitled at the following addresses, or at such other addresses as a party may designate by written notice to each of the other parties hereto.

 

	
COMPANY:
    	
Blue Apron   Holdings, Inc.
    
	
 
    	
5 Crosby Street, 3rd   Floor
    
	
 
    	
New York, NY 10013
    
	
 
    	
Attention: General   Counsel
    
	
 
    	
 
    
	
RECIPIENT:
    	
[      ]
    
	
 
    	
[      ]
    
	
 
    	
[      ]
    
	
 
    	
 
    
	
ESCROW AGENT:
    	
Corporate Secretary
    
	
 
    	
Blue Apron   Holdings, Inc.
    
	
 
    	
5 Crosby Street, 3rd   Floor
    
	
 
    	
New York, NY 10013
    

 

17.                               By signing these Joint Escrow Instructions, you become a party hereto only for the purpose of said Joint Escrow Instructions; you do not become a party to the Agreement.

 

18.                               This instrument shall be binding upon and inure to the benefit of the parties hereto, and their respective successors and permitted assigns.

 

 

	
 
    	
 
    	
Very truly yours,
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
BLUE APRON   HOLDINGS, INC.
    
	
 
    	
 
    	
a Delaware corporation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Print name:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
RECIPIENT:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
[      ]
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(Signature)
    
	
 
    	
 
    	
 
    
	
ESCROW AGENT:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Corporate Secretary
    	
 
    	
 
    
						

 

[Signature Page to Joint Escrow Instructions]

 

 

IF YOU WISH TO MAKE A SECTION 83(B) ELECTION, THE FILING OF SUCH ELECTION IS YOUR RESPONSIBILITY.

 

THE FORM FOR MAKING THIS SECTION 83(B) ELECTION IS ATTACHED TO THIS AGREEMENT AS EXHIBIT D.

 

YOU MUST FILE THIS FORM WITHIN 30 DAYS OF PURCHASING THE SHARES.

 

YOU (AND NOT THE COMPANY OR ANY OF ITS AGENTS) SHALL BE SOLELY RESPONSIBLE FOR FILING SUCH FORM WITH THE IRS, EVEN IF YOU REQUEST THE COMPANY OR ITS AGENTS TO MAKE THIS FILING ON YOUR BEHALF AND EVEN IF THE COMPANY OR ITS AGENTS HAVE PREVIOUSLY MADE THIS FILING ON YOUR BEHALF.

 

The election should be filed by mailing a signed election form by certified mail, return receipt requested to the IRS Service Center where you file your tax returns. See <www.irs.gov>

 

 

EXHIBIT D

 

ELECTION UNDER SECTION 83(b) OF THE

INTERNAL REVENUE CODE OF 1986, AS AMENDED

 

The undersigned taxpayer hereby elects, pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended, to include in his or her gross income the amount of any compensation taxable to him or her in connection with his or her receipt of the property described below:

 

1.                                      The name, address and taxpayer identification number of the undersigned are as follows:

 

NAME OF TAXPAYER:                                             SPOUSE:                                

 

TAXPAYER’S ADDRESS:

 

 

TAXPAYER ID #:                                                         SPOUSE’S ID #:                              

 

2.                                      The property with respect to which the election is made is described as follows:                 (      ) shares (the “Shares”) of the Class B Common Stock of                      (the “Company”).

 

3.                                      The date on which the property was transferred is:            , 20  .

 

4.                                      The taxable year for which the election is made is: 20  .

 

5.                                      The property is subject to the following restrictions: The Shares may be forfeited to the Company, or its assignee, upon the occurrence of certain events. This forfeiture provision lapses with regard to a portion of the Shares over time.

 

6.                                      The fair market value at the time of transfer, determined without regard to any restriction other than a restriction which by its terms will never lapse, of such property is: $       .

 

7.                                      The amount, if any, paid for such property: $       .

 

The undersigned has submitted a copy of this statement to the person for whom the services were performed in connection with the undersigned’s receipt of the above-described property. The transferee of such property is the person performing the services in connection with the transfer of said property.

 

The undersigned understand(s) that the foregoing election may not be revoked except with the consent of the Commissioner.

 

	
Dated:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
[      ], Taxpayer
    

 

The undersigned spouse of taxpayer joins in this election.

 

	
Dated:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Spouse of Taxpayer
    

 

 

EXHIBIT E

 

SPOUSAL CONSENT

 

I,                                                                               , spouse of                           , have read and approve of the foregoing Restricted Stock Award Agreement, dated as of                   , 20  , together with all exhibits and attachments thereto (collectively, the “Agreement”), by and between my spouse and Blue Apron Holdings, Inc., a Delaware corporation (the “Company”). In consideration of the Company’s issuing to                                    (           ) shares of Class B Common Stock of the Company as set forth in the Agreement, I hereby appoint [Recipient] as my attorney-in-fact in respect to the exercise or waiver of any rights under the Agreement, and agree to be bound by the provisions of the Agreement insofar as I may have any rights in said Agreement or any shares issued pursuant thereto under any laws relating to marital property in effect in the state of our residence as of the date of the signing of the foregoing Agreement.

 

	
Dated:
    	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
“Spouse of   Recipient”
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
(Signature)
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
(Print Name)Exhibit 10.12

 

LEASE

 

This Lease, dated for reference purposes July 15, 2013 is made by and between DREISBACH ENTERPRISES, INC., a California corporation (hereinafter called “Lessor”), and Blue Apron Inc., a Delaware corporation (hereinafter called “Lessee”).

 

WITNESSETH:

 

Lessor and Lessee agree as follows:

 

1.                                      That Lessor does hereby lease unto Lessee and Lessee does hereby hire and take from Lessor those certain Premises situate in the City of Richmond, County of Contra Costa, State of California and described as follows:

 

(a)                                 The offices located at 3151 Regatta Boulevard, Building B60, Richmond, California as outlined in Exhibit A and B, and the Dry Storage, Office, Refrigerated Storage, Utility and Dock as outlined in Exhibit C attached hereto including but not limited to any currently existing improvements such as racks, refrigeration and freezer units, shelving, cabinetry, etc. (referred to hereinafter as the “Premises”).  In addition, the terms of this Lease also shall include and Lessor hereby grants to Lessee the non-exclusive use for employees, guests and invitees of all common area parking for employees, guests and invitees in other parking areas surrounding the Premises and in all events Tenant the right to use (a) no fewer than 30 spaces and (b) a non-exclusive easement and all access-ways, driveways and sidewalks for deliveries and otherwise in connection with the use and occupancy of the Premises.  Prior to the commencement date of this Lease, Lessor shall install certain fixtures, racks, sinks and equipment, as set forth on Exhibit D attached hereto (the “Fixtures”). Such installation shall be performed in accordance with all applicable laws, ordinances, rules and regulations and upon the termination of this Lease, for any reason, the Fixtures shall remain the property of Lessor.

 

(b)                                 The Premises shall be used for general offices and food distribution, production, packaging, processing and warehousing. Lessor represents that such uses are permitted under all applicable laws and ordinances.

 

2.                                      Term.

 

(a)                                 The term of this Lease shall be for Three (3) Years, commencing on July 15, 2013. Subject to the Master Lease (as hereinafter defined) having been extended beyond its present expiration date of December 31, 2016 (notice of which extension Lessor shall promptly give to Lessee), Lessee shall have the right to extend the term of this Lease for an additional period of three (3) years, or such lesser period that is no later than the new expiration date of the Master Lease, on the same terms and conditions as are set forth herein on written notice given by Lessee to Lessor no later than May 1, 2016. Lessor, upon Lessee’s request from time to time, shall advise Lessee of the status of any such proposed or actual extension of the term of the Master Lease.

 

3.                                      Rent. The Rent for the Premises shall include utilities and maintenance of the Premises. The total net minimum rent for the term shall be One Million and Eighty Thousand, Dollars ($1,080,000.00), in lawful money of the United States of America, which Lessee agrees

 

 

to pay to Lessor, without deduction or offset, except as expressly set forth in this Lease, at such place or places as may be designated from time to time by Lessor, as follows: Thirty Thousand Dollars ($30,000.00) per month commencing on July 15, 2013 and on the 15th day of each month thereafter. The leased space consists of approximately 12,162 sq. feet of Refrigerated space, approximately 4,000 sq feet of office, bathrooms, break room space and approximately 11,942 sq. ft. of dry space.

 

4.                                      Security Deposit. Lessee, contemporaneously with the execution of this Lease, shall deposit with Lessor the sum of Thirty Thousand Dollars ($30,000.00), as security for the faithful performance by Lessee of all of the terms and conditions of this Lease on the part of Lessee. So long as no monetary or material non-monetary default shall then be continuing after notice and expiration of applicable grace period, Lessor will return the security deposit within 10  days after termination of the Lease and shall reimburse any reasonable attorneys’ fees incurred by Lessee in obtaining the return of the security deposit if not repaid when due.

 

5.                                      Possession. Lessor agrees that in the event of the inability of Lessor to deliver to Lessee possession of the Premises at the commencement of the term, Lessor shall not be liable for any damage caused thereby, nor shall this Lease be void or voidable, but Lessee shall not be liable for rent until such time as Lessor offers to deliver possession of the premises to Lessee. However, the term hereof shall not be extended by such delay. If Lessee, with Lessor’s consent, takes possession prior to the commencement of the term, Lessee shall do so subject to all the covenants and conditions hereof, and shall pay rent for the period ending with the commencement of the term at the same monthly rate as that prescribed for the first month of the term. Lessor will deliver possession by August 15, 2013, or Lessee shall have the right to terminate the Lease at any time within thirty (30) days thereafter on written notice to Lessor, whereupon the Security Deposit shall be paid to Lessee.

 

6.                                      Holding Over. Any holding over after the expiration of the term, with the consent of the Lessor, shall be construed as a tenancy from month to month at a rental of One Hundred and Fifty Percent (150%) of the Rent of the previous month and shall otherwise be on terms and conditions herein specified, so far as applicable.

 

7.                                      Entry by Lessor. Lessor and the agents and employees of Lessor shall have the right to enter upon the Premises at reasonable times and upon reasonable prior written notice to inspect the same to see that no damage has been or is done and to protect any and all rights of Lessor and to post such reasonable notices required by law as Lessor may desire to protect the rights of the Lessor (such posting to be subject to Lessee’s reasonable approval which approval shall not be unreasonably withheld and shall be deemed given if not denied in writing on a reasonable basis within 10 days after Lessor’s written request for such approval). Lessor may for a period commencing ninety (90) days prior to the end of the term, or any extension thereof, have reasonable access to the Premises upon reasonable prior written notice for the purpose of exhibiting the same to prospective tenants.

 

8.                                      Maintenance. At all times the Lessor shall, at its sole cost, keep and maintain the Premises and appurtenances, including but not limited to, roof, foundation, docks, parking areas, walls, warehouse lighting, (office lighting is excluded), electrical, fire sprinklers, plumbing and HVAC, cooler and freezer systems in good condition and repair and shall make such repairs and 

 

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replacements as may be required to do so. Lessee however, at its sole cost and expense is responsible for any damage or repair caused by Lessee’s negligence or abuse, subject to release and waiver of subrogation provisions in this Lease. Lessee shall keep and maintain the Premises and appurtenances in sanitary condition. Lessee has the right to make emergency repairs or other repairs or replacements that Lessor fails to make after written notice to Lessor, in which event Lessor shall reimburse Lessee for any reasonable amount spent by Lessee on such repairs and/or replacements within 15 days after demand, failing which Lessee may offset any such sums from Rent.

 

9.                                      Alterations or Additions. Lessee shall not commit, or suffer to be committed, any waste upon the Premises, or any nuisance, or other act or thing which may unreasonably and materially disturb the quiet enjoyment of any other tenant in the building or of Lessor in the building in which the Premises is located. Lessee shall not make, or suffer to be made, any alterations or additions of the Premises, or any part thereof, without first having obtained the written consent of Lessor, which consent shall not be unreasonably withheld and shall be deemed given if not denied in writing on a reasonable basis within 10 days after submission of plans from Lessee for such alterations or additions. At the end of the term, Lessee shall be entitled (but shall not be required) to remove all of its trade fixtures and other equipment installed on the Premises, other than the Fixtures, provided that Lessee shall repair any damage caused by the installation and/or removal of such trade fixtures and other equipment. In the event Lessee does not elect to remove its trade fixtures and other equipment, they shall be deemed abandoned and Lessor may retain or dispose of them, at its option and at Lessee’s cost. Notwithstanding the foregoing, Lessee is permitted, from time-to time to make improvements and additions to the Premises without the consent of the Lessor which improvements and additions cost less than Twenty Five Thousand Dollars ($25,000) for each project provided that no such improvement or addition shall be structural in nature or constitute any violation of any of Lessor’s obligations under the Master Lease.

 

10.                               Assignment. Lessee shall not assign or transfer this Lease, or any right hereunder, nor sublet the Premises herein leased, or any part thereof, without the prior written consent of the Lessor, which consent shall not be unreasonably withheld and shall be deemed given if not denied in writing on a reasonable basis within 10 days after Tenant’s request. Any attempted assignment, transfer or subletting without such consent shall be void and, at the option of Lessor, shall terminate this Lease. No consent to any assignment of the Lease, or any subletting of the Premises, shall constitute a waiver or discharge of the provisions of this Paragraph 10. Notwithstanding the foregoing, Lessor’s consent to an assignment or subletting shall not be required if it occurs in connection with a merger, consolidation or sale of all or substantially all of Tenant’s assets or if the assignee or sublessee controls, is controlled by or is under common control with Lessee.

 

(i)                                     Lessee agrees to promptly reimburse Lessor for all expenses, including reasonable attorney’s fees not to exceed Three Hundred Dollars ($300.00) Dollars, incurred by Lessor in connection with any requested and permitted assignment or subletting.

 

11.                               Lessee, as a material part of the consideration to be rendered to Lessor, hereby waives all claims against Lessor for damages to goods, wares and merchandise in, upon or about the Premises and for injuries to persons in or about the Premises, from any cause arising at any

 

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time and Lessee will hold Lessor exempt and harmless from any damage or injury to any person, or to the goods wares and merchandise and all other personal property of any person, arising during the term or any extension thereof caused by the negligence gross negligence and/or willful misconduct of Lessee or its agents, invitees or employees. Notwithstanding anything hereinabove to the contrary, Lessor shall be responsible for the acts, omissions and negligence of its officers, employees, invitees and agents.

 

12.                               Insurance. Lessee further agrees to take out and keep in force during the term of this Lease at Lessee’s expense, public liability insurance issued by a company reasonably acceptable to Lessor to protect against any liability to the public, whether to persons or property, incident to the use of or resulting from an occurrence in or on the Premises, the sidewalks adjacent thereto and such other areas which Lessee, its officers, servants, agents, employees, contractors and invitees shall have the sole right to use under the term hereof during the term of this Lease or any occupancy hereunder, in the amount of $1,000,000.00 to indemnify against the claim of one person and $1,000,000.00 against the claims of two or more persons in any one occurrence, and property damage in an amount of not less than $1,000,000.00 per occurrence. The insurance required to be maintained hereunder by Lessee shall be primary. The said policy shall also insure and name as additional insureds the following:

 

(a)                                 Dreisbach Enterprises, Inc.

 

Lessee shall provide Lessor with a certificate or certificates evidencing all coverage required hereunder. Lessee shall use commercially reasonable efforts to obtain a provision in its policy stating that such policy shall not be cancelable or subject to reduction of coverage or other material modification, except after 10 days’ prior written notice to Lessor. Should Lessee fail to provide such insurance coverage or to supply Lessor with such certificates, Lessor shall have the right upon ten (10) days prior written notice to Lessee to procure such coverage and Lessee agrees to reimburse Lessor upon demand for all premiums and other charges paid by Lessor.

 

Lessor and Lessee each hereby waives any and all rights of recovery against the other, or against the officers, employees, agents and representatives of the other, for loss of or damage to such waiving party or the property of, or under the control of, such waiving party, where such loss or damage is under the control of, such waiving party, where such loss or damage is insured against under any insurance policy in force at the time of such loss or damage.

 

13.                               Breach. The occurrence of any of the following shall also constitute a breach of this Lease: (a) The appointment of a receiver to take possession of all or substantially all of the assets of Lessee; or (b) a general assignment by Lessee for the benefit of creditors; or (c) writs of attachment or execution on the interest of Lessee; or (d) any action taken or suffered by Lessee under any insolvency or bankruptcy act. Upon the happening of any such event, which is not cured within ninety (90) days after prior written notice from Lessor to Lessee, this Lease shall terminate ten (10) days after written notice of termination is given by Lessor to Lessee.

 

14.                               Default. Should Lessee default in the payment of any installment of rent or any other sum when due as herein provided, or default in the performance of or breach any other covenant, condition or restriction herein provided to be kept or performed by Lessee; or should

 

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Lessee fail to take out, pay for, maintain or deliver any of the insurance certificates provided in this Lease to be paid by Lessee at the time and in the manner herein provided, and should any such default or breach continue for a period of thirty (30) days from and after written notice thereof is given by Lessor to Lessee (or, except for payment of Rent, for such longer period as may be reasonably required provided that Lessee commences to cure the breach in a prompt manner and proceeds diligently thereafter to complete such cure), then, and in any such event, Lessor may at Lessor’s option terminate this Lease by giving Lessee no less than seven days’ prior written notice hereof, and thereupon, unless such default is cured within such seven days’ period, this Lease shall cease and terminate and Lessee’s rights in and to the Premises and all buildings and other improvements erected and placed thereon shall cease and end, and the Lessor may, without further notice or demand of legal process, re-enter and take possession of said Premises and all buildings and other improvements thereon, remove Lessee and all persons claiming under Lessee therefrom and, except as herein otherwise provided, Lessee and all such persons shall quit and surrender possession of the Premises and all buildings and other improvements thereon to Lessor, provided, however, that such termination shall not relieve Lessee from the payment of any sums then due and payable from Lessee or any claim for damages then accrued against Lessee hereunder, and such termination shall not prevent Lessor from recovering any such sums or damages, or from enforcing such obligations or recovering damages for any default thereof, by any remedy provided by law. Notwithstanding the foregoing, Lessee shall have the right to avoid termination and have this Lease continue in full force and effect provided that it pays any unpaid Rent prior to eviction. Lessor shall use commercially reasonable efforts to relet the Premises in the event of any such termination, and the rents and other sums collected upon any such re-letting shall be credited against any of Lessee’s liabilities hereunder.

 

15.                               Subordination. Lessee agrees that this Lease is and shall be subject to and subordinate to any mortgage, deed of trust or other instrument of security which has been or shall be placed on the land or building of which the Premises form a part, and this subordination is hereby made effective without any further act of Lessee. The Lessee shall, at any time hereinafter, on demand, execute any instruments, releases or other documents that may be reasonably required by any mortgagee, mortgagor or trustor or beneficiary under any deed of trust or other instrument of security.

 

16.                               Free of Liens. Lessee shall keep the Premises, and the property in which the Premises are situated, free of liens arising out of any work performed, materials furnished, or obligations incurred by Lessee.

 

17.                               Surrender. The voluntary or other surrender of this Lease by Lessee, or a mutual cancellation thereof, shall not work a merger, and shall, at the option of Lessor, operate as an assignment to it of any or all such subleases or subtenancies.

 

18.                               Interest. Should Lessee be in default of any rent due herein or any other payments provided herein, such arrearage shall bear interest at the rate of ten (10) percent from the tenth day after Lessor shall have notified Lessee that said rent or other payment has become due.

 

19.                               Lessor shall pay for the cost of all maintenance, repairs, replacements and utilities supplied to or constituting a part of the Premises and all common areas including, without

 

5

 

limitation, all parking areas, accessways, drives and sidewalks Provided, however, Lessee shall be responsible for any damage or repairs caused by the negligence, gross negligence or willful misconduct of Lessee or its employees, agents, guests or invitees.

 

20.                               INTENTIONALLY OMITTED

 

21.                               Common Areas. Lessor shall have shared access of all common areas and driveways in or on the property, and Lessee agrees to keep these areas unobstructed and in good order and condition at all times.

 

22.                               Uses. Lessee shall not use, or permit the Premises or any part thereof to be used, for any purpose or purposes other than the purposes for which the Premises are hereby leased and no other use shall be made or permitted to be made on the Premises, nor other acts done, which will increase the existing rate of insurance upon the building in which the Premises may be located, or cause cancellation of any insurance or permit to be kept, used or sold, in or about the Premises, any article which may be prohibited by the standard form of fire insurance policies. Lessor agrees that so long as Lessee uses the Premises only for any or all of the purposes set forth in Section 1(b) hereof, Lessee shall have no liability under the preceding sentence. Lessor shall, at its cost and expense, comply with any and all requirements pertaining to use of the Premises issued by any insurance organization or company necessary for the maintenance of reasonable fire and public liability insurance covering said building and appurtenances.

 

23.                               Governmental Regulations. Lessee shall, at its sole cost and expense, comply with all of the requirements of all municipal, state and federal authorities now in force, or which may hereinafter be in force, pertaining solely to Lessee’s particular manner of use of the Premises, and shall faithfully observe in the use of the Premises all municipal ordinances and state and federal statutes now in force or which may hereinafter be in force. Except as set forth in the preceding sentence, Lessor shall, at its sole cost and expense, comply with all of the requirements of all municipal, state and federal authorities now in force, or which may hereinafter be in force, pertaining to the Premises. The judgment of any court of competent jurisdiction, or the admission of Lessee in any action or proceeding against Lessee, whether Lessor be a party hereto or not, that Lessee has violated any such ordinance or statute in the use of the Premises, shall be conclusive of that fact as between Lessor and Lessee, subject to Lessee’s right to appeal any such judgment. If Lessee would be required to spend more than $50,000 to comply with its obligations under this Section, it shall have the right, in lieu of effecting such performance, to terminate this Lease on notice to Lessor, in which event Lessor may negate such termination by agreeing on notice to Lessee sent within ten days after receipt of Lessee’s notice, to pay the amount in excess of $50,000 for effecting such compliance.

 

Notwithstanding the foregoing, Lessor warrants that at the time the Lessee takes possession of the Premises, the Premises will be in good repair, vacant, broom clean and free of any toxic or hazardous substances, materials or constituents (including, without limitation, asbestos or ACM) and all systems and equipment shall be in good operating condition and that the Premises and all such systems and equipment shall be in compliance with all requirements of municipal, state and federal authorities and will maintain such compliance to the extent the Lessor’s duties of repair and maintenance hereunder so require. This does not apply to any

 

6

 

repairs or damage caused by the negligence, gross negligence or willful misconduct of Lessee, its employees, invitees and/or agents.

 

Lessee shall have the right to terminate this Lease on notice to Lessor in the event that Lessee is unable to obtain any license, permit or approval required under any applicable law in order to conduct its business at the Premises. Upon any such termination, the security deposit shall, subject to the provisions of this Lease, be paid to Lessee. If, in order to obtain any such license, permit or approval, any alterations or additions are required with respect to any fixture or equipment installed by Lessor on the Premises, Lessor shall have the option to perform such alterations or additions at its sole cost and expense in which case Lessee’s right to terminate this Lease under this provision shall terminate.

 

24.                               Hazardous Materials. Hazardous materials shall mean any substance, material, or waste which is or becomes regulated by any local governmental authority, that concerns the existence, management, control, discharge, treatment, containment and/or removal of substances or materials that are or may become a threat to public health or the environment including, but not limited to, substances defined as “hazardous substances”, “hazardous materials”, “toxic substances” or “hazardous wastes” as covered under the California Health and Safety Code, and in any regulations adopted, published and/or promulgated pursuant to said laws, and in any other environmental law, regulation or ordinance now existing or hereinafter enacted. Lessee hereby agrees that it shall not use, generate, manufacture, refine, produce, process, store or dispose of on, under or about the leased Premises or transport to or from the Leased Premises any hazardous materials, except in compliance with applicable Hazardous Material Laws, nor does Lessee intend to use the Leased Premises in the future for the purpose of generating, manufacturing, refining, producing, storing, handling, transferring, processing or transporting of hazardous materials, except in compliance with any Hazardous Material Laws. If at any time during the term of this Lease, hazardous materials are used, or placed by Lessee on the Leased Premises as a result of Lessee’s activities on the Leased Premises or if any contamination of the Leased Premises shall occur solely as a result of Lessee’s activities on the Leased Premises, Lessee, at Lessee’s sole cost and expense, shall remove, remediate or encapsulate such hazardous waste in accordance with requirements of the appropriate governmental agency. In the event Lessee discovers any hazardous materials in or on the Premises in violation of Hazardous Material Laws, Lessee shall immediately notify Lessor and, unless Lessee is required under the preceding sentence remove, remediate or encapsulate such hazardous materials or waste, Lessor shall do so at Lessor’s sole cost and expense. If Lessor or Lessee is required to remove any hazardous materials under this Section, it shall cause such hazardous materials or waste to be removed from the Leased Premises to be removed and transported solely by duly licensed haulers to duly licensed facilities for disposal.

 

25.                               Advertising and Signs. Lessee shall not conduct or permit to be conducted, any sale by auction on the Premises. The Lessee shall not place, or permit to be placed, any projecting sign, marquee or awning on the front of the Premises without the written consent of the Lessor, which consent shall not be unreasonably withheld and shall be deemed given if not denied in writing on a reasonable basis within 10 days after submission of Lessee’s request for such consent, accompanied with a rendering of the proposed sign, marquee or awning. The Lessee, upon request of the Lessor, shall immediately remove any sign or decoration which the Lessee has placed or permitted to be placed in, on, or about the exterior of the Premises without

 

7

 

Lessor’s approval and which, in the reasonable opinion of the Lessor, is objectionable or offensive and if Lessee fails to do so, the Lessor may enter upon the Premises and remove the same. Lessor has reserved the exclusive right to the two exterior sidewalls, rear wall and roof of the Premises, and the Lessee shall not place or permit to be placed upon the sidewalls, rear wall or roof, any sign, advertisement or notice without the written consent of the Lessor.

 

Pursuant to the foregoing, Lessor hereby consents for Lessee to place reasonable and prominent signage on both the north and northwest sides of the Premises to identify Lessee’s presence on the Premises. Such signage shall be placed and maintained at Lessee’s sole expense and, upon the termination of this Lease for any reason, shall be removed at Lessee’s sole expense.

 

26.                               Destruction of the Premises. If the Premises or any other portion of the building in which the Premises is situated shall be damaged or destroyed from any cause, the Lessee shall give immediate notice thereof to the Lessor and Lessor shall, subject to the provisions of this Paragraph 26, forthwith repair the same, but such destruction or damage shall in no way annul or void this Lease, except that the Lessee shall be entitled to a proportionate deduction of rent while such repairs are being made. If such repairs cannot be made in ninety (90) days, Lessor shall make such repairs within a reasonable time thereafter subject to delays for obtaining permits, parts, or labor beyond the point of control of Lessor. Such proportionate deduction shall be based upon the extent to which the making of such repairs shall interfere with the business carried on by the Lessee in the Premises. In the event the Lessor does not complete such repairs within 90 days or if the damage or destruction occurs in the last 6 months of the term, Lessee may terminate this Lease at any time within thirty (30) days after Lessor’s failure to complete the repairs within the ninety (90) day time period or within thirty (30) days after Lessee is notified of the damage or destruction that occurs within the last six (6) months of the Lease by providing written notice to Lessor, whereupon the security deposit and any prepaid rent for any period after the termination date shall, subject to the provisions of this Lease, be paid to Lessee .

 

In addition to the foregoing, to the extent that Lessor has other freezer storage locations and/or space available to be used such as in the Oakland, California vicinity, Lessor shall agree to permit Lessee, at Lessee’s option, to temporarily occupy such available space(s), office(s) and adjoining freezer/storage facilities upon reasonable terms to be mutually agreed upon between Lessor and Lessee taking the abatement of rent into consideration.

 

27.                               Waiver. No waiver, on the part of the Lessor and/or Lessee, their successors or assigns of any default or breach by either party of any covenant, agreement or condition of this Lease shall be construed to be a waiver of the rights of the other party as to any future default or breach by either Lessee or Lessor.

 

28.                               Condemnation. If any part of the Premises shall be taken for any public or quasi-public use under any statute or by right of eminent domain, and a part thereof remains which is susceptible to occupation hereunder, this Lease shall, as to the part so taken, terminate as of the date title shall vest in the condemnor, and the rent payable hereunder shall be adjusted so that the Lessee shall be required to pay for the remainder of the term only such portion of such rent as the value of the part remaining after such taking bears to the value of the entire Premises prior to such taking but, in such event, Lessor shall have the option to terminate this Lease as of the date

 

8

 

when title to the part so taken vests in the condemner. If all of the Premises, or such part thereof be taken so that there does not remain a portion susceptible for occupation hereunder, this Lease shall terminate as of the date when title to this property vests in the condemner. If a part or all of the Premises shall be taken, all compensation awarded upon such taking shall go to the Lessor and the Lessee shall have no claim thereto, and the Lessee hereby irrevocably assigns and transfers to the Lessor any right to compensation or damages to which the Lessee may become entitled during the term hereof by reason of the condemnation of all or part of the Premises, except for relocation expenses and any award for Lessee’s fixtures and leasehold improvements.

 

29.                               Remedies. The remedies available to Lessor under the terms of this Lease and in law or equity shall be cumulative and the exercise of one remedy shall not constitute an election of remedies.

 

30.                               Successors. The covenants and agreements contained in this Lease shall be binding upon the parties hereto and upon their respective heirs, executors, administrators, successors and assigns; provided however, that nothing herein shall entitle Lessee to assign all or any part of its interest under this Lease without the prior written consent of Lessor, which consent shall not be unreasonably withheld.

 

31.                               Notices. It is agreed between the parties hereto that any notice required hereunder or by law to be served upon either of the parties shall be in writing and shall be delivered personally upon the other or sent by FedEx, UPS or other recognized national courier service or by registered or certified mail, postage prepaid, to the following addresses or to such other address as may be from time to time furnished in writing by Lessor to Lessee or by Lessee to Lessor, each of the parties hereto waiving personal or any other service than as herein provided.

 

Notice shall be deemed to have been delivered upon receipt or refusal to accept receipt.

 

	
If to Lessor:
    	
 
    	
Dreisbach Enterprises, Inc.
   P. O. Box 7509
   Oakland, CA 94601-0509
   Attn:  Valdimer E. Nunes
   Fax:   510-534-2316
    
	
 
    	
 
    	
 
    
	
If to Lessee:
    	
 
    	
Blue Apron Inc.
   324 Maujer Street
   Brooklyn, New York 11206

 

With a copy to:

 

Jeffrey M. Diamond
   Marcus Rosenberg & Diamond LLP
   488 Madison Avenue
   New York, New York 10022
    

 

9

 

32.                               Time of Essence. Time is of the essence in this Lease.

 

33.                               Captions. The captions in this lease are for convenience only and are not a part of this Lease and do not in any way limit or amplify the terms and provisions of this lease.

 

34.                               Attorney’s Fees. In the event a civil action is instituted to enforce or to interpret or rescind any of the terms of this Lease, the prevailing party shall be entitled to recover from the other party such sums as the court or arbitration tribunal may judge reasonable as attorney’s fees at arbitration, trial and on appeal or review or in any proceeding in bankruptcy court, in addition to any and all other amounts provided by law.

 

35.                               Minimum monthly rental shall be increased by three percent (3%) effective upon the anniversary date of the Lease and each year thereafter during the term of this Lease and any renewal thereof. For purposes of this Paragraph 35 the anniversary date shall be the month and day on which the Lessee takes possession of the Premises, but in no event prior to July 15, 2014.

 

36.                               Master Lease. Lessor represents that it is the lessee under a Master Lease for the Premises and other premises with ZKS, as Master Lessor, that the term of the Master Lease expires on December 31, 2016, that there are no defaults thereunder and that no consent under the Master Lease is required for this Lease or for the exercise of Lessee’s rights hereunder.

 

37.                               Cooperation. Lessor shall sign applications and otherwise generally cooperate with Lessee in connection with Lessee’s use and occupancy of the Premises.

 

[SIGNATURE PAGE FOLLOWS THIS PAGE]

 

10

 

IN WITNESS WHEREOF, the parties hereto have executed this Lease agreement this 15th day of July, 2013.

 

	
LESSOR:
    	
 
    	
LESSEE:
    
	
 
    	
 
    	
 
    
	
DREISBACH ENTERPRISES, INC.
    	
 
    	
Blue Apron, Inc.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Valdimir E. Nunes
    	
 
    	
By:
    	
/s/ Matthew Salzberg
    
	
Vice President Sales &   Marketing
    	
 
    	
CEO
    
	
 
    	
 
    	
 
    
	
6-20-13
    	
 
    	
6-20-13
    
					

 

 

EXHIBIT A

 

 

 

 

EXHIBIT B

 

 

 

EXHIBIT C

 

 

 

 

EXHIBIT D

 

 

 

EXHIBIT D TO LEASE

 

Exhibit to Lease:

Lessor Installations Required

 

General:

·                  All rooms delivered clean, painted, in working condition.

·                  All offices and bathrooms must have working and clean fixtures.

 

Room A: “Dock” 4,914 sq ft

·                  Back half of room should have pallet racks installed, floor to ceiling, as deep as possible

Room B: “HiLo Charging room”

·                  Plumbing to be installed for a dish washing machine

·                  Racks can be left in this room

Room C: ‘‘Cooler” 2,100 sq ft

·                  To be left as is

Room D: “Freezer” 2,340 sq ft

·                  To be left as is

Room E: “Cooler” 3,744 sq ft

·                  All racks removed

·                  Passageway between Room E and Room F to be reopened and a plastic hanging divider should be installed

Room F: “Cooler” 4,056 sq ft

·                  Racks reconfigured per diagram

·                  Two handsinks per diagram

·                  Produce sink per diagram

·                  3 compartment sink per diagram

 

 

FIRST AMENDMENT TO INDUSTRIAL LEASE

 

BETWEEN

 

DREISBACH ENTERPRISES, INC., a
 California Corporation
 And
 BLUE APRON INC., a Delaware Corporation.

 

This First Amendment to Lease (“First Amendment”) is dated this 30th day of June 2014, by and between Dreisbach Enterprises, Inc., (“Lessor”) a California Corporation, and Blue Apron Inc., (“Lessee”) a Delaware corporation.

 

RECITALS

 

A.                                    Original Lease:  On July 15, 2013, Lessee and Lessor entered into a Lease (the “Original Lease”) covering approximately 28,104 leasable square feet of space located at 3151 Regatta Boulevard, Richmond, California (“Original Premises”).

 

B.                                    Additional Premises:  Lessee has requested and Lessor has agreed to lease an additional 66,545 square feet of space as more particularly described herein.

 

C.                                    Desire to Amend:  Lessor and Lessee desire to amend the Lease to increase the size of the Original Premises as more particularly set forth below.

 

NOW, THEREFORE, in consideration of the Recitals, the mutual covenants herein contained and for other good and valuable consideration, the parties agree as follows:

 

1.                                      Lessor and Lessee hereby confirm and ratify all the terms, conditions, warranties and provisions of the Original Lease as modified by this First Amendment.  All references to the “Lease” in the Original Lease and this Amendment shall be deemed to mean the Original Lease as modified by this Amendment.

 

 

2.                                      Capitalized terms not defined herein shall have the meaning given such terms in the Lease.

 

3.                                      Commencing on the Additional Premises Commencement Date (defined hereafter), the definition of “Premises” will be hereby amended to reflect that the “Premises” are (i) the offices located at 3151 Regatta Boulevard, Building B60, Richmond, California as outlined on Exhibit A and B of the Original Lease, and the Dry Storage, Office, Refrigerated Storage, Utility and Dock as outlined in Exhibit C of the Original Lease, including but not limited to any currently existing improvements such as racks, refrigeration and freezer units, shelving, cabinetry, etc., and (ii) 14,105 square feet of space located at 3151-F Regatta Blvd., Richmond, California (and identified as “Premises” on Exhibit A attached hereto and made a part hereof), the area which is designated as the “Yard” on Exhibit A attached hereto and made a part hereof (the Yard being 19,830 square feet), and the area designated as the “Additional Yard” on Exhibit A attached hereto and made a part hereof (the Additional Yard being 32,610 square feet) (the space described in this item (ii) is collectively, the “Additional Premises”).  The Additional Premises Commencement Date shall be that date which is ten ( 10) days after Lessor has delivered Lessee with written notice that the Additional Premises is in good repair, vacant, broom clean and free of any toxic or hazardous substances, materials or constituents (including, without limitation, asbestos or ACM) and all systems and equipment in the Additional Premises are in good operating condition, and the Additional Premises and all such systems and equipment therein are in compliance with all requirements of municipal, state and federal authorities.  In the event the Additional Premises are not delivered as required herein to Lessee by July 1, 2014, Lessee shall have the right to elect not to add the Additional Premises to the Original Premises by providing written notice to Lessor of

 

 

same, and upon receipt of such notice, this First Amendment shall be deemed null and void and of no further force and effect.

 

4.                                      The Lease is hereby amended to reflect that in addition to rent payable under Section 3 of the Original Lease and attributable to the Original Premises, commencing on the Additional Premises Commencement Date and on the 15th day of each month thereafter, Lessee shall pay to Lessor as additional rent for the Additional Premises, the sum of $17,366 per month.  Any rent payable for a partial month of the term shall be prorated.  The foregoing rent for the Additional Premises shall not be increased at any time during the term of the Lease, it being understood that Section 35 of the Original Lease shall not apply to the portion of rent attributable to the Additional Premises.

 

5.                                      Notwithstanding anything herein to the contrary, Lessee shall have the right to remove the Additional Yard (as described in Section 3(ii) above) from the Premises and from the Lease by providing no less than thirty (30) days written notice of such election to Lessor.  Such notice shall identify the effective date of such removal and on such effective date:  (i) the Additional Yard shall be deemed removed from the Premises (it being understood that the Premises shall be deemed to exclude the Additional Yard) and Lessee shall have no further or continuing liability under the Lease with respect to the Additional Yard; and (ii) the additional rent payable with respect to the Additional Premises thereafter shall be reduced to $14,105 per month (from $17,366 per month).

 

6.                                      Lessor represents that it is the lessee under a Master Lease for the Original Premises and the Additional Premises and other premises with ZKS, as Master Lessor, that the term of the Master Lease expires on December 31, 2016, that there are no defaults thereunder and

 

 

that no consent under the Master Lease is required for this First Amendment or the exercise of Lessee’s rights hereunder.

 

7.                                      Except as otherwise expressly provided herein, all other terms and conditions to be in accordance with the Lease, all of which are hereby reaffirmed and remain in full force and effect.

 

8.                                      This First Amendment may be executed in any number of counterparts, each of which, when executed shall be an original, and all of which, taken together, shall constitute one and the same instrument as if all parties hereto had executed the same instrument; and any party or signatory hereto may execute this First Amendment by signing any such counterpart.

 

[Remainder of Page Left Intentionally Blank — Signature Page to Follow]

 

 

IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be executed by their duly authorized representatives as of the day and year first above written.

 

 

	
LESSOR
    	
 
    	
LESSEE
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Dreisbach Enterprises, Inc.
    	
 
    	
Blue Apron Inc.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Valdimer E. Nunes
    	
 
    	
By:
    	
/s/ Matthew Salzberg
    
	
Name:
    	
Valdimer E. Nunes
    	
 
    	
Name:
    	
Matt Salzberg
    
	
Title:
    	
V.P. Sales & Marketing
    	
 
    	
Title:
    	
CEO
    

 

 

EXHIBIT A

 

 

 

SECOND AMENDMENT TO LEASE

 

This SECOND AMENDMENT TO LEASE (“Second Amendment”) is made and entered into as of the 29th day of June, 2015, by and between DREISBACH ENTERPRISES, INC., a California corporation (“Lessor”), and BLUE APRON, INC., a Delaware corporation (“Lessee”).

 

R E C I T A L S :

 

A.                                    Lessor and Lessee entered into that certain Lease dated July 15, 2013 (the “Original Lease”), as amended by that certain First Amendment to Industrial Lease dated June 30, 2014 (“First Amendment”), whereby Lessor leases to Lessee and Lessee leases from Lessor those certain premises consisting of approximately 94,649 rentable square feet of space, comprised of (i) approximately 12,162 rentable square feet of refrigerated space, approximately 4,000 rentable square feet of office, bathrooms, and break room space, and approximately 11,942 rentable square feet of dry space, commonly known as Building B60 and the Dry Storage, Office, Refrigerated Storage, Utility, and Dock;  (ii) approximately 14,105 rentable square feet of space located at 3151-F Regatta Boulevard, Richmond, California 94804; (iii) approximately 19,830 rentable square feet of space commonly known as the “Yard”; and (iv) approximately 32,610 rentable square feet of space commonly known as the “Additional Yard”, all of which are located at that certain industrial building located at 3151 Regatta Boulevard, Richmond, California 94804 (collectively, the “Existing Premises”).

 

B.                                    Lessee desires to (i) expand the Existing Premises to include that certain space consisting of approximately 79,360 rentable square feet of space, comprised of approximately 15,000 rentable square feet of cooler storage space (the “Cooler Room”) and approximately 64,360 rentable square feet of dry storage space, as delineated on Exhibit A, attached hereto and made a part hereof (the “Expansion Premises”), and (ii) to otherwise amend the Lease on the terms and conditions contained herein.

 

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 hereby agree as follows:

 

1.                                      Capitalized Terms.  All capitalized terms when used herein shall have the same meaning as is given such terms in the Lease unless expressly superseded by the terms of this Second Amendment.

 

2.                                      Modification of Premises.  Effective as of the date (the “Expansion Commencement Date”) that occurs two (2) business days after the date of Lessor’s delivery of the Lessor Work Completion Notice (as that term is defined below in Section 5), Lessee shall lease from Lessor and Lessor shall lease to Lessee the Expansion Premises.  Consequently,

 

 

effective upon the Expansion Commencement Date, the Existing Premises shall be increased to include the Expansion Premises.  Lessor and Lessee hereby acknowledge that such addition of the Expansion Premises to the Existing Premises shall, effective as of the Expansion Commencement Date, increase the size of the Premises to approximately 174,009 rentable square feet of space.  The Existing Premises and the Expansion Premises may hereinafter collectively be referred to as the “Premises”.

 

3.                                      Expansion Term.  Lessor and Lessee acknowledge that the Lease is currently scheduled to expire on December 31, 2016 (the “Lease Expiration Date”), pursuant to the terms of the Lease.  Notwithstanding anything to the contrary contained in the Lease, the term of Lessee’s lease of the Expansion Premises (the “Expansion Term”) shall commence on the Expansion Commencement Date and shall expire coterminously with the Existing Premises on the Lease Expiration Date.  Lessor and Lessee acknowledge and agree that Lessee’s extension right set forth in Section 2(a) of the Lease shall also apply to the Expansion Premises.

 

4.                                      Rent.

 

4.1.                            Existing Premises Rent.  Prior to the Expansion Commencement Date, and continuing throughout the term of the Lease, Lessee shall continue to pay monthly installments of Rent for the Existing Premises in accordance with the terms of the Lease, as amended by the First Amendment.

 

4.2.                            Expansion Premises Rent.  Notwithstanding any provision to the contrary contained in the Lease, commencing on the Expansion Commencement Date and continuing throughout the Expansion Term, Lessee shall pay, in addition to all amounts payable for the Existing Premises, monthly installments of Rent for the Expansion Premises in accordance with the terms of the Lease, as amended, provided that the monthly amount of the Rent for the Expansion Premises during the Expansion Term shall be as follows:

 

	
Period During
   Expansion Term
    	
 
    	
Annualized Rent
    	
 
    	
Monthly Rent
    	
 
    
	
Expansion Commencement Date — December 31, 2016
    	
 
    	
$
    	
939,240.00
    	
 
    	
$
    	
78,270.00
    	
 
    
								

 

Any Rent payable for a partial month of the Expansion Term shall be prorated.  The foregoing Rent for the Expansion Premises shall not be increased at any time during the Expansion Term.

 

5.                                      Condition of Premises; Lessor’s Work; No Constructive Eviction.  Lessee shall continue to accept the Existing Premises in its existing, “as-is” condition and Lessor shall not be obligated to provide or pay for any improvement work or services related to the improvement of the Existing Premises.  Except as expressly otherwise provided, Lessee shall accept the Expansion Premises in its existing, “as-is” condition and Lessor shall not be obligated to provide or pay for any improvement work or services related to the improvement of the Expansion Premises.  Lessee further acknowledges that neither Lessor nor any agent of Lessor has made any representation or warranty regarding the condition of the Existing Premises or the

 

2

 

Expansion Premises, or the Building, or with respect to the suitability of any of the foregoing for the conduct of Lessee’s business.  Notwithstanding the foregoing, Lessor hereby agrees to (i) install two high-speed doors (the “High Speed Doors”) to allow for ingress and egress between the cooler storage space and the dry storage space, the specifications of which shall be in Lessor’s reasonable discretion, and (ii) complete any structural modifications required in connection with the installation of the High Speed Doors (collectively, “Lessor’s Work”).  Upon completion of Lessor’s Work, Lessor shall deliver to Lessee written notice that the Expansion Premises are ready for occupancy (“Lessor Work Completion Notice”).  Lessor shall pay for the costs associated with Lessor’s Work, subject to Lessee’s reimbursement to Lessor of fifty percent (50%) of the documented out-of-pocket costs actually incurred by Lessor for that portion of Lessor’s Work described in sub part (ii) above within twenty (20) business days of Lessee’s receipt of the Lessor Work Completion Notice, together with invoices or other documentation supporting such costs.  Lessee hereby acknowledges that, notwithstanding Lessee’s occupancy of the Existing Premises during the construction of the Lessor’s Work, Lessee shall reasonably comply and cooperate with reasonable requests made by Lessor, Lessor’s contractor, and/or any other party involved in connection with the construction of the Lessor’s Work.  Lessee, at Lessee’s sole cost and expense, shall provide Lessor with (i) access to the Existing Premises for the construction of the Lessor’s Work, and (ii) a clear working area for the performance of such work (including, but not limited to, the moving of furniture, fixtures and Lessee’s property away from the area in which Lessor is conducting such work).  Lessee hereby agrees that the construction of the Lessor’s Work, and Lessee’s inability to use any portion of the Existing Premises as a result thereof, shall in no way constitute a constructive eviction of Lessee nor entitle Lessee to any abatement of Rent.  Lessor shall have no responsibility, or for any reason be liable, to Lessee for any direct or indirect injury to, or interference with, Lessee’s business arising from the construction of the Lessor’s Work, nor shall Lessee be entitled to any compensation or damages from Lessor for loss of the use of the whole or any part of the Existing Premises, or of Lessee’s personal property or improvements, resulting from the construction of the Lessor’s Work or Lessor’s actions in connection therewith, or for any inconvenience or annoyance occasioned by the construction of the Lessor’s Work or Lessor’s actions in connection therewith.

 

6.                                      Rack Removal and Storage.  As of the date of this Second Amendment, Lessor and Lessee acknowledge that the Cooler Room contains certain storage racks which Lessee does not desire to use during the Expansion Term.  Lessee shall be responsible for the payment of the actual cost of removal of such racks, provided that Lessor shall actually remove such racks and provide secure storage for such racks during the Expansion Term at no additional cost to Lessee.  Upon the Lease Expiration Date, Lessee shall, at Lessee’s sole cost and expense, pay for the actual cost of reinstallation of the racks in the Cooler Room, provided that Lessee shall not be obligated to actually reinstall such racks.

 

7.                                      No Brokers.  Lessor and Lessee hereby warrant to each other that they have had no dealings with any real estate broker or agent in connection with the negotiation of this Second Amendment and that they know of no other real estate broker or agent who is entitled to a commission in connection with this Second 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

 

3

 

limitation, reasonable attorneys’ fees) with respect to any leasing commission or equivalent compensation alleged to be owing on account of the indemnifying party’s dealings with any real estate broker or agent, other than the Broker.  The terms of this Section 7 shall survive the expiration or earlier termination of the Lease.

 

8.                                      Master Lease.  Lessor represents that it is the lessee under a Master Lease for the Original Premises and the Expansion Premises and other premises with Stephens & Stephens (Regatta), LLC, and DF/Hilltop Sub 1, LLC, collectively, as Master Lessor, that the term of the Master Lease expires on December 23, 2031, that, to Lessor’s actual knowledge without duty of inquiry or investigation, there are no defaults thereunder and that no consent under the Master Lease is required for this Second Amendment or Lessor’s Work.

 

9.                                      Conflict; No Further Modification.  In the event of any conflict between the terms and provisions of the Lease and the terms and provisions of this Second Amendment, the terms and provisions of this Second Amendment shall prevail.  Except as specifically set forth in this Second Amendment, all of the terms and provisions of the Lease shall remain unmodified and in full force and effect.

 

10.                               Counterparts.  This Second Amendment may be executed in any number of counterparts, each of which, when executed shall be an original, and all of which, taken together, shall constitute one and the same instrument as if all parties hereto had executed the same instrument; and any party or signatory hereto may execute this Second Amendment by signing any such counterpart.

 

[END OF DOCUMENT; SIGNATURES CONTAINED ON FOLLOWING PAGE]

 

4

 

IN WITNESS WHEREOF, this Second Amendment has been executed as of the day and year first above written.

 

	
“LESSOR”
    	
 
    	
DREISBACH ENTERPRISES, INC.,
    
	
 
    	
 
    	
a California corporation.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Jason W. Dreisbach
    
	
 
    	
 
    	
Name:
    	
Jason W. Dreisbach
    
	
 
    	
 
    	
Its:
    	
President
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
“LESSEE”
    	
 
    	
BLUE APRON, INC.,
    
	
 
    	
 
    	
a Delaware corporation.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Matthew Wadiak
    
	
 
    	
 
    	
Name:
    	
Matthew Wadiak
    
	
 
    	
 
    	
Title:
    	
COO
    

 

5

 

EXHIBIT A

 

OUTLINE OF EXPANSION PREMISES

 

 

1

 

THIRD AMENDMENT TO LEASE

 

This THIRD AMENDMENT TO LEASE (“Third Amendment”) is made and entered into as of the 25th day of April, 2016, by and between DREISBACH ENTERPRISES, INC., a California corporation (“Lessor”), and BLUE APRON, INC., a Delaware corporation (“Lessee”).

 

R E C I T A L S :

 

A.                                    Lessor and Lessee entered into that certain Lease dated July 15, 2013, as amended by that certain First Amendment to Industrial Lease dated June 30, 2014 and that certain Second Amendment to Lease dated June 29, 2015 (the “Lease”).

 

B.                                    Lessor and Lessee desire to amend the Lease on the terms and conditions contained herein.

 

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 hereby agree as follows:

 

1.                                      Capitalized Terms.  All capitalized terms when used herein shall have the same meaning as is given such terms in the Lease unless expressly superseded by the terms of this Third Amendment.

 

2.                                      Modification of Section 2(a).  The Lease is hereby amended by replacing “May 1, 2016” in the second sentence of Section 2(a) with “June 1, 2016”.

 

3.                                      No Brokers.  Lessor and Lessee hereby warrant to each other that they have had no dealings with any real estate broker or agent in connection with the negotiation of this Third Amendment and that they know of no other real estate broker or agent who is entitled to a commission in connection with this Third 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 indemnifying party’s dealings with any real estate broker or agent, other than the Broker.  The terms of this Section 3 shall survive the expiration or earlier termination of the Lease.

 

4.                                      Master Lease.  Lessor represents that it is the lessee under a Master Lease for the Original Premises and the Expansion Premises and other premises with Stephens & Stephens (Regatta), LLC, and DF/Hilltop Sub 1, LLC, collectively, as Master Lessor, that the term of the Master Lease expires on December 23, 2031, that, to Lessor’s actual knowledge without duty of inquiry or investigation, there are no defaults thereunder and that no consent under the Master Lease is required for this Third Amendment.

 

 

5.                                      Conflict; No Further Modification.  In the event of any conflict between the terms and provisions of the Lease and the terms and provisions of this Third Amendment, the terms and provisions of this Third Amendment shall prevail.  Except as specifically set forth in this Third Amendment, all of the terms and provisions of the Lease shall remain unmodified and in full force and effect.

 

6.                                      Counterparts.  This Third Amendment may be executed in any number of counterparts, each of which, when executed shall be an original, and all of which, taken together, shall constitute one and the same instrument as if all parties hereto had executed the same instrument; and any party or signatory hereto may execute this Third Amendment by signing any such counterpart.

 

[END OF DOCUMENT; SIGNATURES CONTAINED ON FOLLOWING PAGE]

 

 

IN WITNESS WHEREOF, this Third Amendment has been executed as of the day and year first above written.

 

 

	
“LESSOR”
    	
 
    	
DREISBACH ENTERPRISES, INC.,
    
	
 
    	
 
    	
a California corporation.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Jason W. Dreisbach
    
	
 
    	
 
    	
Name:
    	
Jason W. Dreisbach
    
	
 
    	
 
    	
Its:
    	
President
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
“LESSEE”
    	
 
    	
BLUE APRON, INC.,
    
	
 
    	
 
    	
a Delaware corporation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Benjamin Singer
    
	
 
    	
 
    	
Name:
    	
Benjamin Singer
    
	
 
    	
 
    	
Title:
    	
Secretary
    

 

 

FOURTH AMENDMENT TO LEASE

 

This FOURTH AMENDMENT TO LEASE (“Fourth Amendment”) is made and entered into as of the 31st day of May, 2016, by and between DREISBACH ENTERPRISES, INC., a California corporation (“Lessor”), and BLUE APRON, INC., a Delaware corporation (“Lessee”).

 

R E C I T A L S :

 

A.                                    Lessor and Lessee entered into that certain Lease dated July 15, 2013, as amended by (i) that certain First Amendment to Industrial Lease dated June 30, 2014, (ii) that certain Second Amendment to Lease dated June 29, 2015, and (iii) that certain Third Amendment to Lease dated April 25, 2016 (the “Lease”).

 

B.                                    Lessor and Lessee desire to amend the Lease on the terms and conditions contained herein.

 

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 hereby agree as follows:

 

1.                                      Capitalized Terms.  All capitalized terms when used herein shall have the same meaning as is given such terms in the Lease unless expressly superseded by the terms of this Fourth Amendment.

 

2.                                      Modification of Section 2(a).  The Lease is hereby amended by replacing “June 1, 2016” in the second sentence of Section 2(a) with “June 10, 2016”.

 

3.                                      No Brokers.  Lessor and Lessee hereby warrant to each other that they have had no dealings with any rea1 estate broker or agent in connection with the negotiation of this Fourth Amendment and that they know of no other real estate broker or agent who is entitled to a commission in connection with this Fourth 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 indemnifying party’s dealings with any real estate broker or agent, other than the Broker.  The terms of this Section 3 shall survive the expiration or earlier termination of the Lease.

 

4.                                      Master Lease.  Lessor represents that it is the lessee under a Master Lease for the Original Premises and the Expansion Premises and other premises with Stephens & Stephens (Regatta), LLC, and DF/Hilltop Sub 1, LLC, collectively, as Master Lessor, that the term of the Master Lease expires on December 23, 2031, that, to Lessor’s actual knowledge without duty of inquiry or investigation, there are no defaults thereunder and that no consent under the Master Lease is required for this Fourth Amendment.

 

 

5.                                      Conflict; No Further Modification.  In the event of any conflict between the terms and provisions of the Lease and the terms and provisions of this Fourth Amendment, the terms and provisions of this Fourth Amendment shall prevail.  Except as specifically set forth in this Fourth Amendment, all of the terms and provisions of the Lease shall remain unmodified and in full force and effect.

 

6.                                      Counterparts.  This Fourth Amendment may be executed in any number of counterparts, each of which, when executed shall be an original, and all of which, taken together, shall constitute one and the same instrument as if all parties hereto had executed the same instrument; and any party or signatory hereto may execute this Fourth Amendment by signing any such counterpart.

 

[END OF DOCUMENT; SIGNATURES CONTAINED ON FOLLOWING PAGE]

 

 

IN WITNESS WHEREOF, this Fourth Amendment has been executed as of the day and year first above written.

 

 

	
“LESSOR”
    	
 
    	
DREISBACH   ENTERPRISES, INC.,
    
	
 
    	
 
    	
a   California corporation.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Valdimer Nunes
    
	
 
    	
 
    	
Name:
    	
Valdimer   Nunes
    
	
 
    	
 
    	
Its:
    	
V.P.   Sales & Marketing
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
“LESSEE”
    	
 
    	
BLUE   APRON, INC.,
    
	
 
    	
 
    	
a Delaware   corporation.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Benjamin Singer
    
	
 
    	
 
    	
Name:
    	
Benjamin   Singer
    
	
 
    	
 
    	
Title:
    	
Secretary
    

 

 

FIFTH AMENDMENT TO LEASE AND AGREEMENT TO RENEW

 

This FIFTH AMENDMENT TO LEASE AND AGREEMENT TO RENEW (“Fifth Amendment/Agreement to Renew”) is made and entered into as of the 1st day of June, 2016, by and between DREISBACH ENTERPRISES, INC., a California corporation (“Lessor”), and BLUE APRON, INC., a Delaware corporation (“Lessee”).

 

RECITALS:

 

A.                                Lessor and Lessee entered into that certain Lease dated July 15, 2013 (the “Original Lease”), as amended by that certain First Amendment to Industrial Lease dated June 30, 2014 (“First Amendment”), Second Amendment to Lease dated June 29, 2015 (“Second Amendment”), Third Amendment to Lease dated April 25, 2016 (“Third Amendment”), Fourth Amendment to Lease dated May 31, 2016 (“Fourth Amendment”) and various agreements to increase the parking areas by approximately 71,766 rentable square feet (collectively, together with all amendments thereto, the “Lease”), whereby Lessor leased to Lessee and Lessee leased from Lessor those certain premises consisting of approximately 245,775 rentable square feet of space comprised of (i) approximately 12,162 rentable square feet of refrigerated space, approximately 4,000 rentable square feet of office, bathrooms, and break room space, and approximately 11,942 rentable square feet of dry space, commonly known as Building 860 and the Dry Storage, Office, Refrigerated Storage, Utility, and Dock; (ii) approximately 14,105 rentable square feet of space located at 3151-F Regatta Boulevard, Richmond, California 94804; (iii) approximately 19,830 rentable square feet of space commonly known as the “Yard”; (iv) approximately 32,610 rentable square feet of space commonly known as the “Additional Yard;” (v) approximately 15,000 rentable square feet of cooler storage space; (vi) approximately 64,360 rentable square feet of dry storage space; and (vii) “Additional Parking Areas” consisting of approximately 71,766 rentable square feet, all of such premises described in (i) — (vii) which are located at that certain industrial building located at 315l Regatta Boulevard,  Richmond, California 94804 (collectively, the “Existing Premises”).

 

B.                             Lessee desires to expand the Existing Premises to include that certain space consisting of approximately 36,302 rentable square feet of warehouse space as delineated on Exhibits A and B, attached hereto and made a part hereof (“Additional Expansion Premises”), and to otherwise amend the Lease on the terms and conditions contained herein.

 

C.                             Lessor and Lessee desire to extend the term of the Lease until May 31, 2019, and to otherwise amend the Lease on the terms and conditions contained herein.

 

D.                             All capitalized terms when used herein shall have the same meaning as is given such terms in the Lease unless expressly superseded by the terms contained herein.

 

A.            FIFTH AMENDMENT:

 

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, Lessor and Lessee hereby agree as follows:

 

1.                                     Modification of Premises.  Effective as of June 1, 2016, Lessee shall lease from Lessor and Lessor shall lease to Lessee the Additional Expansion Premises, and the Existing Premises shall be increased to include the Additional Expansion Premises. Lessor and Lessee hereby acknowledge the addition of the Additional Expansion Premises to the Existing Premises shall increase the size of the Premises to approximately 282,077 rentable square feet. The Existing Premises and the Additional Expansion Premises are collectively referred to herein as the “Premises.”

 

2.                                 Expansion Term.   Lessor and Lessee acknowledge that the Lease is currently scheduled to expire on December 31, 2016, pursuant to the terms of the Lease.  Notwithstanding anything to the contrary contained in the Lease, the term of Lessee’s lease of the Additional Expansion Premises shall commence on June

 

1

 

1, 2016, and shall expire on December 31, 2016; however, Lessor and Lessee acknowledge and agree that Lessee’s extension right set forth in Section 2(a) of the Original Lease shall also apply to the Additional Expansion Premises.

 

3.                                 Rent.  Lessee shall continue to pay monthly installments of Rent for the Existing Premises in accordance with the terms of the Lease.  Commencing on June 1, 2016, and continuing through December 31, 2016, Lessee shall pay, in addition to all amounts payable for the Existing Premises, monthly installments of Rent for the Additional Expansion Premises in the amount of $93,755.00.  In the event Rent is payable for only a partial month for the Additional Expansion Premises, it shall be prorated accordingly.  Rent for the Additional Expansion Premises shall not be increased at any time from June 1, 2016, through December 31, 2016.

 

4.                                 Condition of Premises.  Lessee shall continue to accept the Existing Premises in its existing, “as-is” condition and Lessor shall not be obligated to provide or pay for any improvement work or services related to the improvement of the Existing Premises.  Lessee shall accept the Additional Expansion Premises in its existing, “as-is” condition and Lessor shall not be obligated to provide or pay for any improvement work or services related to any improvement of the Additional Expansion Premises.  Lessee further acknowledges that neither Lessor nor any agent of Lessor has made any representation or warranty regarding the condition of the Existing Premises, Additional Expansion Premises or Building, or with respect to the suitability of any of the foregoing for the conduct of Lessee’s business.

 

5.                                 Rack Removal /Storage and Product Removal.  As of the date of this Fifth Amendment/Agreement to Renew, Lessor and Lessee acknowledge that the Additional Expansion Premises contain certain storage racks that Lessee does not desire to use during its tenancy.  After Lessor tenders the Additional Expansion Premises to Lessee, Lessee shall be solely responsible for the removal of such racks at no cost to Lessor, but that Lessee will be entitled to a 15 calendar day credit on the Rent for the Additional Expansion Premises for the removal of such racks.  During Lessee’s tenancy, Lessor shall be responsible for and provide secure storage for such racks at no additional cost to Lessee.  Upon the conclusion of Lessee’s tenancy, Lessee shall, at Lessee’s sole cost and expense, pay for the reasonable and documented out-of-pocket costs actually incurred by Lessor to reinstall such storage racks to their original condition in the Additional Expansion Premises, provided that Lessee shall not be obligated to actually reinstall such racks.  Lessor shall have up to one year to re-install the racks, and if Lessor does not re-install said racks within the one (1) year time period, Lessee’s obligation to pay for the reasonable and documented out-of-pocket costs actually incurred by Lessor for re-installation will cease. Lessee will reimburse Lessor for the reasonable and documented out-of-pocket costs actually incurred by Lessor for the relocation of the product currently stored in the Additional Expansion Premises, not to exceed $85,000.  Lessor will provide documentation of relocation costs to Lessee and Lessee agrees to pay such costs within 30 days of receipt of such documentation.

 

B.            AGREEMENT TO RENEW:

 

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, Lessor and Lessee hereby agree to renew the Lease subject to the terms and conditions (which replace all of the language in the identified sections) outlined below:

 

1.                                Term (Section 2 of Original Lease).  The fixed term of this Lease shall be for Three (3) years, commencing on June 1, 2016, and expiring on May 31, 2019.

 

2.                               Rent (Section 3 of Original Lease). From June 1, 2016, through December 31, 2016, Lessee shall continue to pay monthly installments of Rent for the Existing Premises and Additional Expansion Premises in accordance with the terms of the Lease and this Fifth Amendment/Agreement to Renew.  Commencing on June 1, 2016, the minimum monthly base rent shall be Two Hundred Twenty-Eight Thousand Eight Hundred Ninety-Six Dollars and Thirty-Four Cents ($228,896.34), which Lessee agrees to pay to Lessor on the first day of each month

 

2

 

thereafter.  The square footage of the Premises is set forth in Paragraphs A and B of the Recitals and consists of approximately 282,077 rentable square feet of space. The Rent for the Premises shall include utilities and maintenance of the Premises, including the refrigeration systems therein.

 

3.                                 Security Deposit (Section 4 of Original Lease).   Lessee shall increase the deposit with Lessor by One Hundred Ninety-Eight Thousand Eight Hundred Ninety-Six Dollars and Thirty-Four Cents ($198,896.34).  The total security deposit will now total Two Hundred Twenty-Eight Thousand Eight Hundred Ninety-Six Dollars and Thirty-Four Cents ($228,896.34), as security for the faithful performance by Lessee of all of the terms and conditions of the Lease on the part of Lessee.  So long as no monetary or material non-monetary default shall then be continuing after notice and expiration of applicable grace period, Lessor will return the security deposit within 10 days after termination of the Lease and shall reimburse any reasonable attorneys’ fees incurred by Lessee in obtaining the return of the security deposit if not repaid when due.

 

4.                                 Non-Liability/Indemnity (Section 11 of the Original Lease). Neither Lessor nor its agents shall be liable under any circumstances for: (i) injury or damage to the person or goods, wares, merchandise or other property of Lessee, Lessee’s employees, contractors, invitees, customers or any other person in or about the Premises, whether such damage or injury is caused by or results from fire, steam, electricity, gas, water or rain, indoor air quality, the presence of mold or from the breakage, leakage, obstruction or other defects of pipes, fire sprinklers, wires, appliances, plumbing, HVAC, lighting fixtures, cooler and freezer systems, or from any other cause, whether the said injury or damage results from conditions arising upon the Premises or upon other portions of the Building, or from other sources or places, unless such injury or damages are caused by the gross negligence or willful misconduct of Lessor or its agents, or (ii) injury to Lessee’s business or for any loss of income or profit therefrom. Instead, it is intended that Lessee’s sole recourse in the event of such damages or injury be to file a claim on the insurance policy(ies) that Lessee is required to maintain herein or elects to maintain.  Notwithstanding the foregoing, Lessor shall protect, indemnify, defend and hold harmless the Lessee and its employees, agents, agents, representatives, and officers from and against any and all losses, claims, liability or costs (including court costs and attorney’s fees) incurred by reason of any breach or default on the part of Lessor in the performance of any covenant or agreement on the part of the Lessor to be performed pursuant to this Lease.

 

Except for Lessor’s gross negligence or willful misconduct, Lessee shall indemnify, protect, defend and hold harmless the Premises, Lessor and its agents, Lessor’s master or ground lessor, partners and Lenders, from and against any and all claims, injuries, loss of rents, liabilities, damages, liens, judgments, penalties, attorneys’ and consultants’ fees and/or expenses arising out of, involving, or in any way connected with, Lessee’s use and/or occupancy of the Premises. If any action or proceeding is brought against Lessor by reason of any of the foregoing matters, Lessee shall upon notice defend the same at Lessee’s expense by counsel reasonably satisfactory to Lessor and Lessor shall cooperate with Lessee in such defense. Lessor need not have first paid any such claim in order to be defended or indemnified.

 

5.                                      Insurance (Section 12 of the Original Lease). Lessee shall obtain and keep in force a Commercial General Liability policy of insurance protecting Lessee and Lessor against claims for bodily injury, personal injury and property damage based upon or arising out of the ownership, use, occupancy or maintenance of the Premises and all areas appurtenant thereto. Such insurance shall be on an occurrence basis providing coverage in an amount not less than $1,000,000 per occurrence with an annual aggregate of not less than $2,000,000.  Lessee shall add Dreisbach Enterprises, Inc., Stephens & Stephens (Regatta) LLC and DF Hilltop Sub-1 LLC as additional insureds by means of an endorsement at least as broad as ISO’s CG 20 26 Endorsement. The policy shall not contain any intra-insured exclusions as between insured persons or organizations, but shall include coverage for liability assumed under this Lease as an “insured contract” for the performance of Lessee’s indemnity obligations under this Lease.  The personal injury contractual liability exclusion shall be deleted from the contractual liability coverage.  The policy limits of said insurance shall not limit the liability of Lessee nor relieve Lessee of any obligation hereunder. Lessee shall provide an endorsement on its liability policy(ies) which provides that its insurance shall be primary and non-contributory with any similar insurance carried by Lessor, whose insurance shall be considered excess insurance only.

 

Lessee shall also obtain and keep in force (a) Business Auto Liability covering owned, non-owned and hired vehicles with a limit of not less than $1,000,000 per accident; (b) Worker’s Compensation Insurance with

 

3

 

statutory limits and Employers Liability with limits of $500,000 each accident, $500,000 disease policy limit, $500,000 disease-each employee and shall include a waiver of subrogation endorsement; (c) All Risk or Special Form coverage protecting Lessee against loss of or damage to Lessee’s alterations, additions, improvements, carpeting, floor coverings, decorations, fixtures, inventory and other business personal property situated in or about the Premises to the full replacement value of the property so insured; and (d) Business Interruption Insurance for Lessee’s business interruption losses and extra expenses in amounts as will reimburse Lessee for direct or indirect losses attributable to all perils commonly insured against by prudent lessees in the business of Lessee or attributable to prevention of access to the Premises as a result of such perils.

 

Lessor shall maintain liability insurance, in addition to, and not in lieu of, the insurance required to be maintained by Lessee. Lessee shall not be named as an additional insured therein.

 

Without affecting any other rights or remedies, Lessor and Lessee release and waive all rights of recovery against each other for losses, damages or injuries of any nature whatsoever to property or persons for which Lessor and/or Lessee are insured or could have been insured.  Lessor and Lessee shall obtain from their respective insurers waivers of the subrogation rights such insurers may have against Lessor or Lessee.  The effect of such releases and waivers is not limited by the amount of insurance carried or required, any applicable deductibles or self-insured retentions or uninsured exposures.

 

If Lessee elects to self-insure or to maintain the insurance required herein subject to deductibles and/or retentions exceeding $25,000, Lessor and Lessee shall maintain all rights and obligations between themselves as if Lessee maintained the insurance with a commercial insurer including any additional insured status, primary liability, waivers of subrogation, other insurance clauses, and any other extensions of coverage required herein. Lessee shall pay from its assets the costs, expenses, damages, claims, losses and liabilities, including attorney’s fees and necessary litigation expenses at least to the extent that an insurance company would have been obligated to pay those amounts if Lessee had maintained the insurance pursuant to this Lease.

 

If Lessee is permitted to sublease any space, the insurance and indemnification obligations similar to those required of the Lessee shall be provided by all subtenants (or provided by the Lessee on behalf of subtenants).  Lessee shall be held responsible for any modification in these insurance requirements as they apply to subtenants. Lessee shall maintain certificates of insurance from all subtenants containing provisions similar to those listed herein (modified to recognize that the certificate is from subtenants) enumerating, among other things, the waivers of subrogation, additional insured status, and primary liability as required herein, and make them available to Lessor upon request.

 

The insurance required herein shall be by companies with an insurance rating of A:VII or better from A.M. Best Co.  Lessee shall not do or permit to be done anything which invalidates the required insurance policies. Lessee shall deliver to Lessor certificates with copies of the required endorsements evidencing the existence and amounts of the required insurance. In the event any such policy is cancelled, Lessee shall provide notice to Lessor.  Lessee shall furnish Lessor with evidence of renewals once coverage has been bound and can be evidenced via a certificate of insurance, but in no event more than 10 days after expiration of Lessee’s policies.  Such policies shall be for a term of at least one year, or the length of the remaining term of this Lease, whichever is less.

 

6.                                      Notices (Section 31 of Original Lease).  Lessee’s notice information shall be updated as follows with the remainder of Section 31 of the Original Lease remaining unchanged:

 

Blue Apron, Inc.
  5 Crosby Street, 3rd Floor
 New York, NY 10013
 Attn: Legal Department

 

With a copy by email to: legalnotice@blueapron.com

 

4

 

7.                                      Rental Increase (Section 35 of Original Lease,  ¶4 of First Amendment and Second Amendment and ¶3 of Fifth Amendment).  Monthly rent shall be increased by three percent (3%) per annum for the Premises effective initially for the annual term commencing January 1, 2017.

 

For the avoidance of doubt, the monthly rent payable shall be as follows:

 

	
Period
    	
 
    	
Monthly Rent
    	
 
    
	
June 1, 2016 — December 31, 2016
    	
 
    	
$
    	
228,896.34
    	
 
    
	
January 1, 2017 — December 31, 2017
    	
 
    	
$
    	
235,763.23
    	
 
    
	
January 1, 2018 — December 31, 2018
    	
 
    	
$
    	
242,836.13
    	
 
    
	
January 1, 2019 — May 31, 2019
    	
 
    	
$
    	
250,121.21
    	
 
    

 

8.                                      Ammonia Awareness.  Lessee shall develop an Ammonia Emergency Action/Evacuation Plan and train its employees accordingly.  Lessee will ensure that it provides current emergency contact information for all shift personnel to Lessor.  Attached hereto as Exhibit C is a copy of Lessor’s Tenant Package which Lessee agrees to execute and return to Lessor.

 

9.                                      ADA.  The Premises described in this Agreement have not undergone inspection by a Certified Access Specialist.  Since compliance with the Americans with Disabilities Act (ADA) is dependent upon Lessee’s specific use of the Premises, Lessor makes no warranty or representation as to whether or not the Premises comply with ADA or any similar legislation. In the event that Lessee’s use of the Premises requires modifications or additions to the Premises in order to be in ADA compliance, Lessee agrees to make any such necessary modifications and/or additions at Lessee’s expense.

 

C.            MISCELLANEOUS:

 

1.                                No Brokers.  Lessor and Lessee hereby warrant to each other that they have had no dealings with any real estate broker or agent in connection with the negotiation of this Fifth Amendment/Agreement to Renew and that they know of no other real estate broker or agent who is entitled to a commission in connection with this Fifth Amendment/Agreement to Renew.  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 indemnifying party’s dealings with any real estate broker or agent, other than the Broker.  The terms of this Section shall survive the expiration or earlier termination of the Lease.

 

2.                                Master Lease.  Lessor represents that it is the lessee under a Master Lease for the Existing Premises and the Additional Expansion Premises and other premises with Stephens & Stephens (Regatta), LLC, and DF/Hilltop Sub 1, LLC, collectively, as Master Lessors, that the term of the Master Lease expires on December 23, 2031, that, to Lessor’s actual knowledge without duty of inquiry or investigation, there are no defaults thereunder and that no consent under the Master Lease is required for this Fifth Amendment/Agreement to Renew.

 

3.                                Conflict, No Further Modification.    In the event of any conflict between the terms and provisions of the Lease and the terms and provisions of this Fifth Amendment/Agreement to Renew, the terms and provisions of this Fifth Amendment/Agreement to Renew shall prevail.  Except as specifically set forth in this Fifth Amendment/Agreement to Renew, all of the terms and provisions of the Lease shall remain unmodified and in full force and effect.

 

4.                              Counterparts. This Fifth Amendment/Agreement to Renew may be executed in any number of counterparts, each of which, when executed shall be an original, and all of which, taken together, shall constitute one and the same instrument as if all parties hereto had executed the same instrument; and any party or signatory hereto may execute this Fifth Amendment/Agreement to Renew by signing any such counterpart.

 

[END OF DOCUMENT; SIGNATURES CONTAINED ON FOLLOWING PAGE]

 

5

 

In WITNESS WHEREOF, this FIFTH AMENDMENT TO LEASE AND AGREEMENT TO RENEW has been executed as of the day and year first above written.

 

 

	
LESSOR
    	
 
    	
DREISBACH   ENTERPRISES, INC.
    
	
 
    	
 
    	
A   California Corporation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Jason W. Dreisbach
    
	
 
    	
 
    	
Name:
    	
Jason   W. Dreisbach
    
	
 
    	
 
    	
Title:
    	
President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
LESSEE
    	
 
    	
BLUE   APRON, INC.
    
	
 
    	
 
    	
a   Delaware Corporation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Benjamin Singer
    
	
 
    	
 
    	
Name:
    	
Benjamin   Singer
    
	
 
    	
 
    	
Title:   
    	
Secretary
    

 

6

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