Document:

Exhibit 10.7(a)

 

AMENDMENT NO 1,
dated as of March 12, 2004, to the Registration Rights Agreement dated as
of August 1, 2000, as amended (the “Registration Rights Agreement”),
between Blyth. Inc., a Delaware corporation (the “Company”), and Robert B.
Goergen (the “Executive”). Unless otherwise defined herein, capitalized terms
used herein shall have the same meanings as are ascribed thereto in the
Registration Rights Agreement.

 

WHEREAS, the Company
and the Executive desire to amend the Registration Rights Agreement so as to
extinguish the right of the Successors to require that such public offer and
sale of the Registrable Securities be firmly underwritten by underwriters
selected by the Successors and the correlative obligation of the Company to buy
back such Registrable Securities pursuant to Section 9 of the Employment
Agreement if the Company and the Successors are unable to obtain the commitment
of such underwriters to firmly underwrite the offer and sale of such
Registrable Securities.

 

NOW, THEREFORE, the
Company and the Executive hereby agree as follows:

 

1.                                     Section 1.2(b)
of the Registration Rights Agreement is hereby deleted in its entirety.

 

2.                                     Except
as amended hereby, the Registration Rights Agreement shall remain in full force
and effect.

 

IN WITNESS WHEREOF,
the parties have executed this Amendment as of the date set forth above.

 

 

	
   

  	
  Blyth, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert H. Barghaus

  	
   

  
	
   

  	
   

  	
  Its: Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  The Executive:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Robert B. Goergen

  	
   

  
	
   

  	
  Robert B. GoergenExhibit
10.9(a)

 

Amendment No. 1 to the Blyth
Industries, Inc.

1994 Employee Stock Option Plan

(as Amended and Restated as of
March 30, 2000)

 

1.                           The last paragraph of Section 1 of the
Blyth Industries, Inc. 1994 Employee Stock Option Plan (as Amended and Restated
as of March 30, 2000) (the “Plan”) shall be amended and restated as
follows:

 

“This amended and restated plan
increases the number of shares issuable upon exercise of options granted under
the Plan by (i) 1,000,000 shares to 2,880,000 shares and (ii) on an annual
basis on each of February 1, 2001, February 1, 2002 and
February 1, 2003.”

 

2.                           Section 3(a) of the Plan shall be
amended and restated as follows:

 

“Subject to the provisions of
Section 9 (relating to adjustments upon changes in capital structure and
other corporate transactions), the number of shares of Common Stock subject at
any one time to Options granted under the Plan, plus the number of shares of
Common Stock theretofore issued and delivered pursuant to the exercise of
Options granted under the Plan shall not exceed the sum of (i) 2,880,000 shares
plus (ii) an additional number of shares, which are to be added on each of
February 1, 2001, February 1, 2002 and February 1, 2003, equal
to the lesser of (A) three-quarters of one percent (0.75%) of the total
outstanding shares of Common Stock of the Corporation on the applicable
Anniversary Date and (B) 600,000 shares. In no event may the number of shares
of Common Stock subject at any one time to Options granted under the Plan, plus
the number of shares of Common Stock theretofore issued and delivered pursuant
to the exercise of Options granted under the Plan exceed 4,680,000 shares.”

 

3.                           The first sentence of Section 5(a) of
the Plan shall be amended and restated as follows:

 

“Options may be granted under the
Plan at any time and from time to time on or prior to May 31, 2003.”

 

4.                           Section 12 of the Plan shall be amended
and restated to read in its entirety as follows:

 

“EXPIRATION AND TERMINATION OF
THE PLAN.

 

Except with respect to Options then
outstanding, the Plan shall expire on June 1, 2003 (the “Expiration
Date”).  Any Options outstanding as of
the Expiration Date shall remain in effect until they have been exercised or
terminated or have expired by their respective terms.”

 

5.                           This Amendment shall be effective as of
June 1, 2003, subject to the approval of the majority of the stockholders
of the Corporation of the Corporation’s 2003 Incentive Plan.  In the event that a majority of the stockholders
of the Corporation do not approve the Corporation’s 2003 Incentive Plan, this
Amendment shall be void, ab initio.

 

6.                           Except as specifically provided herein, the
Plan shall remain in full force and effect.Exhibit
10.12(a)

 

Amendment No. 1 to the Blyth,
Inc.

1994 Stock Option Plan for
Non-Employee Directors

(as Amended and Restated as of
April 4, 2002)

 

1.                           Section 2 of the Blyth, Inc. 1994 Stock
Option Plan for Non-Employee Directors (as Amended and Restated as of
April 4, 2002) (the “Plan”) shall be amended and restated in its entirety
as follows:

 

“SHARES SUBJECT TO THE PLAN

 

The total number of shares (the
“Shares”) of Common Stock for which options may be granted under the Plan shall
not exceed 270,000 in the aggregate, subject to adjustment in accordance with
Section 12 hereof. There will initially be reserved for issuance or
transfer from the Corporation’s treasury upon the exercise of options granted
under the Plan 270,000 Shares, subject to adjustment in accordance with
Section 12 hereof.”

 

2.                           Section 4 of the Plan shall be amended
and restated in its entirety as follows:

 

“ELIGIBILITY; GRANT OF OPTION

 

Each director of the Corporation
who (a) is elected to office for the first time after March 1, 1994, and
(b) is not, and has not been during the immediately preceding 12-month period,
an officer or employee of the Corporation or any subsidiary of the Corporation
(a “Participant”) shall automatically be a participant in the Plan. Options
will be granted in the following manner:

 

(i)                         Each Participant who is elected to office for
the first time after January 31, 2002 shall automatically be granted an
option to acquire 10,000 Shares under the Plan, effective as of the date of
such election.

 

(ii)                      Each Participant who will remain in office
following the annual meeting of the Corporation to be held in June, 2002 and
who was, on January 1, 2002, granted an option to acquire 1,500 Shares
under the Plan, as then in effect, shall on the date of the Corporation’s annual
meeting to be held in June, 2002, be granted an option to acquire 3,500 Shares
under the Plan.

 

No Options shall be granted after
May 31, 2003.”

 

3.                           Section 17 of the Plan shall be amended
and restated in its entirety as follows:

 

“TERMINATION AND AMENDMENT OF
PLAN

 

The Plan shall terminate on
June 1, 2003.  Termination or any
modification or amendment of the Plan shall not, without the consent of a
Participant, affect his or her rights under an option previously granted to him
or her.”

 

 

4.                                 This Amendment shall be effective as of
June 1, 2003, subject to the approval of the majority of the stockholders
of the Corporation of the Corporation’s 2003 Incentive Plan.  In the event that a majority of the stockholders
of the Corporation do not approve the Corporation’s 2003 Incentive Plan, this
Amendment shall be void, ab initio.

 

5.                           Except as specifically provided herein, the
Plan shall remain in full force and effect.Exhibit 10.1

 

Confidential Treatment Requested As To
Certain Information Contained In This Exhibit

 

 

LEASE

 

from

 

MASSACHUSETTS DEVELOPMENT FINANCE AGENCY,

Landlord

 

to

 

AVANT IMMUNOTHERAPEUTICS, INC.

Tenant

 

1

 

Table of Contents

 

	
  SECTION 1

  	
  Reference Information

  	
   

  
	
  Section 1.1.

  	
  Reference Information

  	
   

  
	
  Section 1.2.

  	
  Exhibits

  	
   

  
	
  SECTION 2

  	
  Premises and Term

  	
   

  
	
  Section 2.1.

  	
  Premises

  	
   

  
	
  Section 2.2.

  	
  Term

  	
   

  
	
  Section 2.3.

  	
  Option to Extend Original Term For
  Extension Terms

  	
   

  
	
  SECTION 3

  	
  As Is Condition of Premises; Option to
  Purchase

  	
   

  
	
  Section 3.1.

  	
  As
  Is Condition of Premises

  	
   

  
	
  SECTION 4

  	
  Fixed Rent; Specialized Tenant Improvements
  Allowance; Allowance Rent

  	
   

  
	
  Section 4.1.

  	
  The Fixed Rent

  	
   

  
	
  Section 4.2.

  	
  Specialized Tenant Improvement Allowance

  	
   

  
	
  Section 4.3.

  	
  Reimbursement
  To Landlord Of Specialized Tenant Improvement Allowance

  	
   

  
	
  SECTION 5

  	
  Real Estate and Other Taxes

  	
   

  
	
  Section 5.1

  	
  Real Estate Taxes

  	
   

  
	
  Section 5.2.

  	
  Tenant’s
  Obligation To Pay Other Taxes

  	
   

  
	
  SECTION 6

  	
  Insurance.

  	
   

  
	
  Section 6.1.

  	
  Tenant’s Insurance

  	
   

  
	
  Section 6.2.

  	
  Landlord’s Insurance

  	
   

  
	
  Section 6.3.

  	
  Tenant Reimbursement of Insurance Taken Out by Landlord

  	
   

  
	
  Section 6.4.

  	
  Requirements Applicable to Insurance
  Policies

  	
   

  
	
  Section 6.5.

  	
  Waiver of Subrogation

  	
   

  
	
  SECTION 7

  	
  Utilities and Services; Common Area
  Maintenance Expenses

  	
   

  
	
  Section 7.1.

  	
  Utilities
  and Services

  	
   

  
	
  Section 7.2.

  	
  Sub-Metering

  	
   

  
	
  Section 7.3.

  	
  Non-Separately Metered or Submetered Metered Utilities

  	
   

  
	
  Section 7.4.

  	
  Connection
  and Use of Utility Equipment

  	
   

  
	
  Section 7.5.

  	
  Interruption
  of Services

  	
   

  
	
  Section 7.6.

  	
  Common
  Area Maintenance Expenses

  	
   

  
	
  SECTION 8

  	
  Payments on Account

  	
   

  
	
  Section 8.1.

  	
  Payments on Account

  	
   

  
	
  SECTION 9

  	
  Landlord’s Covenants

  	
   

  
	
  Section 9.1.

  	
  Building Maintenance

  	
   

  
	
  Section 9.2

  	
  Common Area Maintenance

  	
   

  
	
  Section 9.3

  	
  Common Area Maintenance

  	
   

  
	
  SECTION 10

  	
  Tenant’s Covenants

  	
   

  
	
  Section 10.1.

  	
  Use

  	
   

  
	
  Section 10.2.

  	
  Repair
  and Maintenance

  	
   

  
	
  Section 10.3.

  	
  Compliance with Law and Insurance
  Requirements

  	
   

  
	
  Section 10.4.

  	
  Tenant’s Work

  	
   

  
	
  Section 10.5.

  	
  Indemnity

  	
   

  
	
  Section 10.6

  	
  Landlord’s Right to Enter

  	
   

  
	
  Section 10.7

  	
  Personal Property at Tenant’s Risk

  	
   

  
	
  Section 10.8

  	
  Payment of Landlord’s Cost of Enforcement

  	
   

  

 

i

 

	
  Section 10.9

  	
  Yield Up

  	
   

  
	
  Section 10.10

  	
  Estoppel Certificate

  	
   

  
	
  Section 10.12

  	
  Landlord’s Expenses Re Consents

  	
   

  
	
  Section 10.13

  	
  Rules and Regulations

  	
   

  
	
  Section 10.14

  	
  Holding Over

  	
   

  
	
  Section 10.15

  	
  Assignment and Subletting

  	
   

  
	
  Section 10.16

  	
  Overloading and Nuisance

  	
   

  
	
  Section 10.17

  	
  Tenant’s Financial Condition

  	
   

  
	
  SECTION 11

  	
  Casualty or Taking

  	
   

  
	
  Section 11.1

  	
  Termination

  	
   

  
	
  Section 11.2

  	
  Restoration

  	
   

  
	
  Section 11.3

  	
  Exceptions
  to Landlord’s Obligations

  	
   

  
	
  Section 11.4

  	
  Award

  	
   

  
	
  SECTION 12

  	
  Default

  	
   

  
	
  Section 12.1

  	
  Events of Default

  	
   

  
	
  Section 12.2

  	
  Remedies

  	
   

  
	
  Section 12.3

  	
  Remedies Cumulative

  	
   

  
	
  Section 12.4

  	
  Landlord’s Right to Cure Defaults

  	
   

  
	
  Section 12.5

  	
  Effect of Waivers of Default

  	
   

  
	
  Section 12.6

  	
  No Accord and Satisfaction

  	
   

  
	
  Section 12.7

  	
  Interest on Overdue Sums

  	
   

  
	
  SECTION 13

  	
  Mortgages

  	
   

  
	
  Section 13.1

  	
  Rights of Mortgage Holders

  	
   

  
	
  Section 13.2

  	
  Superiority of Lease; Option to Subordinate

  	
   

  
	
  SECTION 14

  	
  Miscellaneous Provisions

  	
   

  
	
  Section 14.1

  	
  Notices from One Party to the Other

  	
   

  
	
  Section 14.2

  	
  Quiet Enjoyment

  	
   

  
	
  Section 14.3

  	
  Lease Not to be Recorded; Notice of Lease

  	
   

  
	
  Section 14.4

  	
  Bind and Inure; Limitation of Landlord’s
  Liability

  	
   

  
	
  Section 14.5

  	
  Acts of God

  	
   

  
	
  Section 14.6

  	
  Landlord’s Default

  	
   

  
	
  Section 14.7

  	
  Brokerage

  	
   

  
	
  Section 14.8

  	
  Miscellaneous

  	
   

  
	
  Section 14.9

  	
  Independent
  Covenants; Waivers By Tenant

  	
   

  
	
  Section 14.10

  	
  Rights Reserved by Landlord

  	
   

  
	
  Section 14.11.

  	
  Bond Financing

  	
   

  
	
  Section 14.12

  	
  Non Discrimination; Job Creation

  	
   

  
	
  Section 14.13

  	
  Access to the Premises; Tenant’s Right To
  Use Conference Center

  	
   

  
	
  Section 14.14

  	
  Parking Rights

  	
   

  
	
  Section 14.15

  	
  Confidentiality

  	
   

  

 

ii

 

LEASE

 

SECTION 1

Reference Information

 

Section 1.1.     Reference Information.  Reference in this Lease to any of the
following shall have the meaning set forth below:

 

Date of this Lease:         December 22, 2003

 

Premises:  The portion (shown on
Exhibit A) of the building (the “Building”) on the lot (the “Lot”) shown on
Exhibit B, situated at 151 Martine Street, Fall River, Massachusetts.

 

	
  Landlord:

  	
   

  	
  Massachusetts Development Finance Agency, a body politic and
  corporate and a public instrumentality of the Commonwealth of Massachusetts
  pursuant to Massachusetts General Laws, Chapter 23G

  
	
   

  	
   

  	
   

  
	
  Address of Landlord:

  	
   

  	
  75 Federal Street, Boston, Massachusetts 02110,

  Attn: General Counsel

  
	
   

  	
   

  	
   

  
	
  Landlord’s Payment Address:

  	
   

  	
  Massachusetts Development Finance Agency

  P.O. Box 55073

  Boston, MA 02205

  
	
   

  	
   

  	
   

  
	
  Tenant:

  	
   

  	
  Avant Immunotherapeutics, Inc., a Delaware corporation

  
	
   

  	
   

  	
   

  
	
  Address of Tenant:

  	
   

  	
  119 Fourth Avenue, Needham, MA 02494

  
	
   

  	
   

  	
   

  
	
  Original Term Commencement Date:

  	
   

  	
  As of the date of this Lease

  
	
   

  	
   

  	
   

  
	
  Original Term Expiration Date:

  	
   

  	
  The day before the seventh (7th) anniversary of the
  Original Term Commencement Date except if the Original Term Commencement Date
  occurs on a day that is not the first day of the month then the Original Term
  Expiration Date shall instead end on the last day of the month in which the
  seventh (7th) anniversary of the Original Term Commencement Date
  occurs.

  
	
   

  	
   

  	
   

  
	
  Extension Terms:

  	
   

  	
  Two (2) separate consecutive periods of five (5) years each.

  
	
   

  	
   

  	
   

  
	
  Premises Square Footage:

  	
   

  	
  11,756 rentable square feet.

  

 

 

	
  Building Square Footage:

  	
   

  	
  ***Confidential Treatment Requested as to this Information***
  rentable square feet, as the same may be adjusted as provided in the definition
  of “Tenant’s Proportionate Fraction” set forth below in this Section 1.

  
	
   

  	
   

  	
   

  
	
  Annual Fixed Rental Rate:

  	
   

  	
  (i) For the nine (9) month period commencing on the Original Term
  Commencement Date: ***Confidential Treatment Requested as to this Information***

  

  (ii) For the period commencing on the day after the end of such initial nine
  (9) month period and ending on the day before the fifth (5th)
  anniversary of the Original Term Commencement Date (the “Second Rent Period”)
  except that if the day before such fifth anniversary shall not be the last
  day of a month, the Second Rent Period shall instead end on the last day of
  the month in which such fifth (5th)
  anniversary         occurs:          $***Confidential
  Treatment Requested as to this Information***

  

  (iii) During the remainder of the Original Term and during each applicable
  Extension Term, commencing as of the first day after the Second Rent Period
  (the “First Adjustment Date”) and annually as of each anniversary of the
  First Adjustment Date (each an “Adjustment Date”), the Annual Fixed Rental
  Rate shall be calculated for the immediately following twelve (12) month
  period that begins with the applicable Adjustment Date as follows: An annual
  amount equal to the product of the Annual Fixed Rental Rate payable for the
  then preceding twelve (12) month period multiplied by the lesser of (a) 1.03
  or (b) the “Increase Factor”.

  

  For the purposes of this Lease, the term “Increase Factor” shall mean a
  fraction, the numerator of which shall be the “Index” (defined below) as
  issued for the quarter that immediately precedes the applicable Adjustment
  Date and the denominator of which shall be the Index as issued for the same
  quarter in the year immediately prior to the applicable Adjustment Date.
  Notwithstanding the foregoing, if the numerator is less than the denominator,
  then the Increase Factor shall be one (1).

  

  “Index” shall mean the Consumer Price Index for Urban

  

 

2

 

	
   

  	
   

  	
  Wage Earners and Clerical Workers, Boston, Mass., All Items – Series
  A (1982-84=100) issued by the Bureau of Labor Statistics of the United States
  Department of Labor. In the event that the Index shall hereafter be converted
  to a different standard reference base or otherwise revised, the determination
  of the Increase Factor shall be made with the use of such conversion factor,
  formula, or table for converting the Index as may be published by the Bureau
  of Labor Statistics or, if said Bureau shall not publish the same, then with
  the use of such conversion factor, formula, or table as may be published by
  Prentice Hall, Inc., or failing such publication, by any other nationally
  recognized publisher of similar statistical information. In the event that
  the Index shall cease to be published, then, for the purposes of determining
  the Increase Factor, there shall be substituted for the Index such other
  Index as Landlord and Tenant shall agree upon, and, if they are unable to
  agree within ninety (90) days after the Index ceases to be published, such
  matter shall be determined in Boston by arbitration in accordance with the
  Rules of the American Arbitration Association.

  
	
   

  	
   

  	
   

  
	
  Permitted Uses:

  	
   

  	
  Research and development of vaccines, biotechnology-related
  manufacturing and related office uses.

  
	
   

  	
   

  	
   

  
	
  Public Liability Insurance Limit:

  	
   

  	
  Bodily Injury and Property Damage:

  

  Combined single limit of $5,000,000, or greater amount as reasonably required
  by Landlord from time to time.

  
	
   

  	
   

  	
   

  
	
  Tenant’s Proportionate Fraction:

  	
   

  	
  ***Confidential Treatment Requested as to this Information***,
  representing a fraction, the numerator of which shall be the rentable square
  footage of the Premises and the denominator of which shall be the rentable
  square footage of the Building. In the event of any reconfigurations,
  additions, exclusions or modifications to the Building or any part thereof
  that changes the rentable area of the Building, Landlord may reasonably
  redetermine Tenant’s Proportionate Fraction to reflect such change in the
  rentable area of the Building on the condition that such redetermination is
  calculated in substantially the same manner and method as the Premises and
  the Building were originally measured for purposes of this Lease.

  

 

3

 

	
  Specialized Tenant Improvement Allowance Fee (See Section 4.3):

  	
   

  	
  
$***Confidential Treatment Requested
  as to this Information***

  
	
  Broker:

  	
   

  	
  Whelan Associates, LLC

  

 

Section 1.2.            Exhibits. The following Exhibits are
attached to and incorporated in this Lease:

 

	
  Exhibit A:

  	
   

  	
  Plan of Premises

  
	
  Exhibit B:

  	
   

  	
  Description of Lot

  
	
  Exhibit C:

  	
   

  	
  Activity and Use Limitation

  
	
  Exhibit D:

  	
   

  	
  Rules and Regulations

  
	
  Exhibit E:

  	
   

  	
  List of Approved Specialized Tenant Improvements

  
	
  Exhibit F:

  	
   

  	
  Tenant’s Space Plan

  
	
  Exhibit G:

  	
   

  	
  Plan of North Parking Areas

  
	
  Exhibit H:

  	
   

  	
  Exclusions from Common Area Maintenance Expenses

  
	
  Exhibit I:

  	
   

  	
  Letter from UMASS Dartmouth Regarding Conference Center Rental Fees

  

 

SECTION 2

Premises and Term

 

Section 2.1.     Premises.  Landlord hereby leases and demises the
Premises to Tenant and Tenant hereby leases the Premises from Landlord, and
subject to and with the benefit of (i) the Kerr Mill Revitalization and
Development Plan, prepared by the Cecil Group, Inc. dated September, 1999 and
approved by the City of Fall River on September 7, 1999, as amended; (ii) the
Activity and Use Limitation for the Lot approved by Massachusetts Department of
Environmental Protection and incorporated by reference in Exhibit C;
(iii) all easements, restrictions and encumbrances of record; (iv) all laws
including without limitation the Fall River Ordinance Division 7 Research and
Development Overlay District Regulations Sections 86-385 through 86-389 and all
amendments thereto; and (v) Landlord’s rules and regulations for the Building
and Lot attached hereto as Exhibit D and the rules and regulations
adopted from time to time by Landlord and/or the entire South Coast Research
& Technology Park in which the Lot is located, including, without
limitation, any declaration of covenants and restrictions that may hereafter be
imposed upon the South Coast Research & Technology Park (the “Park”)
(collectively all of the foregoing in this clause (v), the “Rules and
Regulations” and collectively all of the documents and agreements described in
clauses (i) through (v) of this Section 2.1, the “Use Documents”); provided
that a subsequently adopted Rule and Regulation shall not be binding on Tenant
to the extent the same is contrary to Tenant’s rights under this Lease.  The Premises shall include the ceiling,
floor, interior walls, the inner surface of the demising walls, the inner
surface of exterior windows, any space in the Premises used for shafts, stacks,
pipes, conduits, fan rooms, ducts, electric or other utilities, sinks or other
Building facilities (except to the extent that the same serve other tenant(s)’
premises), and the entry doors (and related glass and finish work) to the
Premises and all fixtures, which are and shall remain Landlord’s property

 

4

 

unless otherwise specified in writing. 
In addition to Tenant’s repair and maintenance obligations under Section
10.2, Tenant shall maintain and repair in good condition the emergency exit
door (and associated “panic bar alarm system”) (collectively, the “Emergency
Door”) that is located at the end of one of the hallways of the Premises and
which opens to an emergency exit stair well that connects to the first floor of
the Building (the “Emergency Exit Stairwell”). 
Tenant agrees that, subject to Landlord’s access rights described
elsewhere in this Lease, Tenant shall keep the Emergency Door secure and Tenant
and its employees shall only use the Emergency Door and the Emergency Exit
Stairwell for emergency purposes and not as a non-emergency means of access and
egress to or from the Premises.

 

Subject to the Landlord’s rights set forth in the last sentence of the
next paragraph and in Section 14.4, and subject to the Use Documents, Tenant
shall have the right to use, in common with other tenants of the Building and
Landlord and as appurtenant to Tenant’s use of the Premises, the Building
lobbies and entrances, elevators, exterior walkways, driveway, roadways,
sidewalks and the parking areas of the Building and Lot for access and egress
to and from the Premises and the common bathrooms in the Building.

 

Landlord shall have the right to place in the Premises (but in such
manner as to reduce to a minimum interference with Tenant’s use of the
Premises), sun control devices, utility lines, equipment, stacks, ducts, pipes,
conduits and the like.  Should Tenant
install any hung ceilings or walls in the Premises pursuant hereto, Tenant
shall install and maintain, as Landlord may require, proper access panels
therein to afford access to any facilities above the ceiling or within or
behind the walls. In addition to Landlord’s rights under Section 14.14 with
respect to parking spaces and parking areas, Landlord reserves the right to
construct additional buildings or other improvements on or under the Lot and/or
the “North Parking Areas” (as such term is defined in Section 14.14) and
modify, restrict, regulate and/or remove any portion of the common areas on the
Lot and/or the North Parking Areas or in the Building at any time and to
otherwise regulate the use thereof provided and only to the extent any such additions,
modifications, restrictions, regulations and other changes do not unreasonably
interfere with Tenant’s use of or access to the Premises or reduce (by more
than a de minimis amount) the quantity of parking available to Tenant.

 

Section 2.2.     Term.  TO HAVE AND TO HOLD for an original term
(the “Original Term” or the “Lease Term”) beginning on the Original Term
Commencement Date and continuing until the Original Term Expiration Date,
unless sooner terminated or extended as hereinafter provided.

 

Section 2.3.     Option
to Extend Original Term For Extension Terms.  Tenant shall have two (2) separate options to extend the Lease
Term for an additional five (5) year period (i.e., for a total, if both such
options are exercised as provided herein, of ten successive years beyond the
Original Term) beyond the Original Term or the First Extension Term, as the
case may be (each five year period being referred to herein as an “Extension
Term”), provided (i) Tenant shall give notice to Landlord of its exercise of
such option not less than six (6) months prior to the expiration of the
Original Term or the first Extension Term, as the case may be, (ii) no default
beyond any applicable grace period in the obligations of Tenant under this
Lease shall exist at the time each such notice is given, and (iii) at the time

 

5

 

each such option is exercised the original Tenant hereunder, a
permitted assignee of Tenant under Section 10.14 or any “Approved Entity” (as
such term is defined in Section 10.14) shall be in occupancy of at least 50% of
the entire Premises then demised hereunder. 
All of the terms and provisions of this Lease shall be applicable during
each Extension Term except that Tenant shall have no option to extend the Lease
Term beyond the second Extension Term.

 

SECTION 3

As Is Condition of Premises; Option to Purchase

 

Section 3.1.  As Is Condition of Premises.  Tenant agrees to accept the Premises in its
present “as is” condition, and, subject to Landlord’s obligation to disburse
the Specialized Tenant Improvement Allowance in accordance with the terms and
conditions of this Lease, Landlord shall have no obligation to perform any work
or construction to prepare the same for Tenant’s occupancy or otherwise.  Tenant has inspected the Premises and the
Building and has determined that both the Premises and the Building (and the
systems) therein are functional for Tenant’s proposed operations.  Subject to the provisions of Section 10.4 regarding
Landlord’s approval of alterations and additions, to the extent that Tenant
subsequently determines that it needs to install additional Building equipment
or systems or to modify existing Building equipment and systems, Tenant shall
perform the same at Tenant’s sole expense. 
If Tenant shall desire to perform any other work or construction, the
same shall be done only in accordance with this Lease.  Landlord represents and warrants to Tenant
that, to the best of Landlord’s knowledge, as of the Commencement Date, the
Building and the Lot, including all common areas located thereon, are in
material compliance with all of the provisions of the terms, provisions,
covenants and restrictions contained in any of the Use Documents referenced in
Section 2.1 of this Lease and are in material compliance with all applicable
building and zoning codes, including without limitation, the Americans with
Disabilities Act and the regulations of the Massachusetts Architectural Access
Board.

 

Section 3.2. 
***Confidential Treatment Requested as to this Information***

 

SECTION 4

Fixed Rent; Specialized Tenant Improvements Allowance; Allowance Rent

 

Section 4.1.     The
Fixed Rent.  Tenant shall pay rent
(“Fixed Rent”) to Landlord at Landlord’s Payment Address or at such other place
or to such other person or entity as Landlord may by notice to Tenant from time
to time direct, at the applicable Annual Fixed Rental Rate set forth in Section
1, in equal installments equal to 1/l2th of the Annual Fixed Rental Rate in
advance on the first day of each calendar month included in the term, and for
any portion of a calendar month at the beginning or end of the term or the
Second Rent Period, at that rate payable in advance for such portion.

 

6

 

Tenant shall pay, as Additional Rent, a late charge equal to the
greater of (i) $100 or  (ii) five
percent (5%) of the amount of any Fixed Rent or other charges not paid within
five (5) days of when due hereunder.

 

Section 4.2.
Specialized Tenant Improvement Allowance.  In order to assist Tenant with Tenant’s desire to install the
“Approved Specialized Tenant Improvements” (as such term is defined in Section
10.4), Landlord shall provide Tenant with an allowance, subject to the
provisions of such Section 10.4 and Section 4.3 below, up to the aggregate
amount of ***Confidential Treatment Requested as to this Information*** (the
“Specialized TI Allowance”), subject to increase as hereinafter set forth,
which monies shall be disbursed to Tenant not more than once monthly (in one or
more separate increments of not less than ***Confidential Treatment Requested
as to this Information***) (each separate increment being referred to herein as
a “Disbursement Increment”) for its costs of purchasing and installing the
Approved Specialized Tenant Improvements, provided that Tenant shall have the
right to use up to 5% (i.e., ***Confidential Treatment Requested as to this
Information***) of the Specialized TI Allowance for Tenant’s costs of designing
the Approved Specialized Tenant Improvements. 
In no event, however, shall Landlord be obligated to disburse any
portion of the Specialized TI Allowance (i) after the first twelve (12) months
of the Original Term or (ii) if Tenant shall then be in default under this
Lease beyond applicable notice and cure periods.  Subject to the above, the applicable portion of the Specialized
TI Allowance shall be disbursed to Tenant thirty (30) days after Tenant’s
presentation to Landlord of (i) detailed invoices supporting such purchase and
installation costs which invoices shall reasonably itemize such costs on a line
item basis, (ii) evidence of such installation, (iii) lien waivers from the
contractors installing the same, (iv) an AIA reimbursement form signed by
Tenant’s contractor and architect and (v) other items reasonably requested by
Landlord (collectively, “Tenant’s Reimbursement Request”).  Each Tenant Reimbursement Request shall be
subject to Landlord’s approval and the approval of “Landlord’s Construction
Consultant.”  Landlord shall have the
right to engage the services of a construction management consultant
(“Landlord’s Construction Consultant”) who shall review and approve the
completion status of Tenant’s installation of Approved Specialized Tenant
Improvements and each Tenant’s Reimbursement Request.  Tenant agrees to reimburse Landlord an amount equal to the lesser
of (i) 50% of the total, bona fide, out-of-pocket, third party costs paid by
Landlord to Landlord’s Construction Consultant and which costs are directly
related to Landlord’s Construction Consultant’s review of Tenant’s installation
of the Approved Specialized Tenant Improvements and Tenant Reimbursement
Requests (the “Reimbursable Costs”), or (ii) ***Confidential Treatment
Requested as to this Information*** of the Reimbursable Costs.  Tenant’s reimbursement of the Reimbursable
Costs shall be paid by Tenant on the first day of the month following the month
in which Tenant receives an invoice from Landlord together with a copy of the
bill from Landlord’s Construction Consultant which bill itemizes the work
performed and time spent by Landlord’s Construction Consultant in reviewing the
installation of the Approved Specialized Tenant Improvements and each Tenant
Reimbursement Request.  In addition,
each invoice from Landlord shall evidence the aggregate total of all amounts
paid by Landlord which constitute Reimbursable Costs and Tenant shall at no
time be obligated to reimburse Landlord an amount that would result in Tenant
having paid more than 50% of the aggregate total of the Reimbursable Costs or $20,000.00,
whichever is less.

 

7

 

In order to compensate Landlord for Landlord’s administrative costs in
arranging for, and disbursing the Specialized TI Allowance, Tenant shall pay to
Landlord the Specialized Tenant Improvement Allowance Fee on the date hereof.

 

In the event that Tenant does not draw down upon the entire
***Confidential Treatment Requested as to this Information*** loan of even date
herewith from Landlord to Tenant (the “Equipment Loan”) as evidenced by the
“Equipment Loan Documents” (as such term is defined in Section 10.14), Tenant
shall have the right, by written notice given to Landlord, to draw upon and
utilize up to the lesser of (i) ***Confidential Treatment Requested as to this
Information*** or (ii) the undrawn upon amount of the Equipment Loan, as part
of the “Specialized TI Allowance” described above in this Section 4.2,
whereupon (A) the maximum amount of the Equipment Loan shall be reduced by the
amount that shall be utilized as an addition to the “Specialized TI Allowance”
and (B) the aggregate amount of the “Specialized TI Allowance” shall be
increased by such corresponding amount. 
Notwithstanding anything in this Lease or the Equipment Loan Documents
to the contrary, any undisbursed amount of the Equipment Loan which is added to
the “Specialized TI Allowance” pursuant to this Section 4.2 may be drawn upon
and used by Tenant in the same manner as set forth in this Section 4.2 and
shall be repaid by Tenant to Landlord subject and pursuant to the terms of
Section 4.3 of this Lease and not pursuant to the Equipment Loan Documents.

 

Section 4.3.  Reimbursement To Landlord Of Specialized
Tenant Improvement Allowance.  For
each Disbursement Increment disbursed to Tenant under Section 4.2, Tenant shall
pay to Landlord at Landlord’s Payment Address, as Additional Rent, beginning on
the first day of the month following the month in which the applicable
Disbursement Increment shall have been disbursed to Tenant and continuing for
the first day of the month in each of the following months occurring during the
Lease Term and during each applicable Extension Term until such Disbursement
Increment has been repaid in full, an amount equal to the monthly payment
required to pay in full, on a direct reduction basis, an amount equal to the
applicable Disbursement Increment disbursed to Tenant by Landlord under Section
4.2, with interest paid in advance at the rate of 5.5% per annum of and using
an amortization period of fifteen (15) years. 
If Tenant shall request that the Specialized TI Allowance be disbursed
in more than one Disbursement Increment, then Tenant shall be obligated to make
payments to Landlord under this Section 4.3 on multiple reimbursement schedules
(i.e., each Disbursement Increment shall be repaid on a separate reimbursement
schedule for that particular Disbursement Increment); provided that, without
changing the actual monthly payment due from Tenant with respect to the
repayment of an applicable Disbursement Increment, Landlord shall submit a
single invoice each month to Tenant that itemizes and consolidates the
Specialized Tenant Allowance Reimbursement Payments that will be due from
Tenant on the first day of the following month.  (The payments under this Section 4.3 shall be referred to
collectively as the “Specialized Tenant Allowance Reimbursement
Payments”.)  ***Confidential Treatment
Requested as to this Information***

 

8

 

SECTION 5

Real Estate and Other Taxes

 

Section 5.1      Real
Estate Taxes.  As Additional Rent,
Tenant shall pay to Landlord at Landlord’s Payment Address Tenant’s
Proportionate Fraction of (i) all taxes, assessments (special, betterment or
otherwise), levies, fees, water and sewer rents and charges, if any, and all other
government levies and charges, general and special, ordinary and extraordinary,
foreseen and unforeseen, which are, at any time prior to or during the term
hereof, imposed or levied upon or assessed against Landlord for the Lot or
Building or any rent or other sums payable by any tenants or occupants thereof
(collectively “taxes and assessments” or if singular “tax or assessment”) and
(ii) 33.33% (the “Building’s Share”) of all taxes and assessments for the North
Parking Areas and the common systems of the Park, including, without
limitation, the sewer pumping station; provided that with respect to the taxes
and assessments, if any, solely attributable to the sewer pumping station,
prior to calculating the Building’s Share of such amount, such taxes and
assessments solely attributable to the sewer pumping station shall be reduced
by the amount, if any, of such taxes and assessments paid by the landowner
abutting the Park.  If and to the extent
that a common system is significantly enhanced for a particular lot within the
Park but not for the lots generally, Landlord shall make an equitable
adjustment, in Landlord’s reasonable discretion, in allocating the taxes (if
any) assessed on such enhanced common system among the lots within the Park to
account for the disproportionate benefit of such enhancement to the particular
lot.

 

Landlord shall elect to pay betterment assessments over the longest
period permitted by law, and only the installments thereof (and interest
thereon) becoming due during the term shall be payable by Tenant hereunder.

 

All payments shall be made by Tenant on the first day of the month
following the month in which Landlord’s invoice therefor shall have been
received by Tenant.

 

Nothing herein shall, however, require Tenant to pay any income taxes,
excess profits taxes, excise taxes, franchise taxes, estate, succession,
inheritance or transfer taxes assessed to Landlord, provided, however, that if
at any time during the term the present system of ad valorem taxation of real
property shall be changed so that in lieu of the whole or any part of the ad
valorem tax on real property, or in lieu of increases therein, there shall be
assessed on Landlord a capital levy or other tax on the gross rents received
with respect to the Building or Lot or a federal, state, county, municipal, or
other local income, franchise, excise or similar tax, assessment, levy or
charge (distinct from any now in effect) measured by or based, in whole or in
part, upon gross rents, then Tenant’s Proportionate Fraction of any and all of
such taxes, assessments, levies or charges, to the extent so measured or based
(“Substitute Taxes”), shall be payable by Tenant, provided, however, Tenant’s
obligation with respect to the aforesaid Substitute Taxes shall be limited to
the amount thereof as computed at the rates that would be payable if the
Building and Lot were the only property of Landlord.

 

Section 5.2.     Tenant’s
Obligation To Pay Other Taxes. 
Tenant shall be responsible to pay directly to the City of Fall River,
as Additional Rent, for one hundred percent (100%) of

 

9

 

any taxes imposed or assessed by the City of Fall River against
Tenant’s leasehold interest under this Lease or against any of Tenant’s
equipment, trade fixtures or other personal property.

 

SECTION 6

Insurance.

 

Section 6.1.     Tenant’s
Insurance.  Tenant shall, as
Additional Rent, maintain throughout the Term the following insurance:

 

(a)     Commercial
general liability insurance for any injury to person or property occurring on
the Premises or the Building or Lot or elsewhere in the Park (including the
North Parking Areas), naming as insureds Tenant, and naming Landlord and such
persons, including, without limitation, Landlord’s managing agent, as Landlord
shall designate from time to time as additional insureds, in amounts which
shall, at the beginning of the Term, be at least equal to the limits set forth
in Section 1, and, from time to time during the term, shall be for such higher
limits as are reasonably required by Landlord;

 

(b)     Worker’s
compensation insurance with statutory limits covering all of Tenant’s employees
working at the Premises; and

 

(c)     If
and to the extent Tenant owns, uses or leases vehicles in connection with its
business activities, business auto liability coverage which insures against
bodily injury and property damage claims arising out of the ownership,
maintenance, or use of “any auto.”  A
minimum of $1,000,000.00 combined single limit accident will apply.

 

Section 6.2.     Landlord’s Insurance.  At all times during the Term, Landlord will
maintain or cause to be maintained the following insurance:  (a) all-risk fire and extended coverage
casualty insurance covering damage to the Premises, including without
limitation, the Approved Specialized Tenant Improvements and the Building and
the Lot in an amount equal to 100% of the replacement cost thereof, (b)
commercial general public liability insurance covering occurrences on or about
the common areas of the Building or the Lot (and naming Tenant as an additional
insured thereunder), (c) loss of “rental value” insurance in an amount equal to
not less than a one (1) year period, and (d) workers compensation and
employer’s liability insurance to the extent required by state law.  Upon request by Tenant, Landlord shall
provide certificates of insurance to Tenant evidencing that Landlord has all of
the coverages required herein.

 

Section 6.3.     Tenant Reimbursement of
Insurance Taken Out by Landlord.  As
Additional Rent, Tenant shall from time to time reimburse Landlord, on the
first day of the month following the month in which Tenant receives Landlord’s
invoice, for Tenant’s Proportionate Fraction of (i) Landlord’s costs incurred
in providing any insurance for the Building and the Lot and (ii) for the Building’s
Share of any insurance carried by Landlord for the Park except that Tenant
shall be responsible to pay for 100% of the insurance costs for the Approved
Specialized Tenant Improvements under clause (a) of Section 6.2.  Landlord shall allow Tenant to participate
with Landlord in the negotiation with Landlord’s insurer of the premiums for
the Approved Specialized Tenant Improvements, and in the

 

10

 

event that Tenant shall not be reasonably satisfied with the amount of
such premiums, Tenant shall have the right to procure the insurance for the
Approved Specialized Tenant Improvements with an insurance company licensed to
do business in Massachusetts reasonably approved in advance by Landlord,
provided that Landlord is named as the insured party and the loss payee on such
insurance policy and Landlord is granted the exclusive right to negotiate and
receive the proceeds of such insurance, and Tenant shall have no right to
receive the proceeds of such insurance or negotiate the settlement of the
same.  Tenant’s payment for the amounts
described in the first sentence of this Section 6.3 shall be reduced to the
extent such costs are paid by Tenant as common area maintenance expenses under
Section 7.6 of this Lease.  During the
Lease Term, Landlord shall insure the Building for laboratory uses, and Tenant
shall reimburse Landlord for any increased costs incurred by Landlord in
providing such insurance to the extent attributable to any special endorsement
or increase in premium resulting from the business or operations of Tenant or
any special or extraordinary hazards resulting therefrom, in either case in
excess of the costs that, but for Tenant’s particular use of the Premises,
would have been incurred by Landlord to insure the Building for laboratory
uses; provided, however, that, without detracting from Tenant’s obligation to
reimburse Landlord for such amounts, Landlord shall permit Tenant the
opportunity to participate with Landlord in the discussions and negotiations
with Landlord’s insurance company regarding such costs.

 

Section 6.4.     Requirements
Applicable to Insurance Policies. 
All policies for insurance required under the provisions of Section 6.1
and Section 6.2 shall be obtained from responsible companies qualified to do
business in the Commonwealth of Massachusetts and in good standing therein,
which companies and the amount of insurance allocated thereto shall be subject
to the other party’s reasonable approval. 
Each party agrees to furnish the other party with insurance company
certificates of all such insurance therefor required by such party prior to the
beginning of the Term hereof and of each renewal policy at least thirty (30)
days prior to the expiration of the policy it renews, and each party shall
furnish copies of the policies to the requesting party upon the requesting
party’s request.  Each such policy shall
be noncancellable with respect to the interest of Landlord and its mortgagees
without at least thirty (30) days’ prior written notice thereto.

 

Section 6.5.     Waiver
of Subrogation.  All insurance which
is carried by either party with respect to the Premises or to furniture,
furnishings, fixtures or equipment therein or alterations or improvements
thereto, whether or not required, shall include provisions or endorsements
which either designate the other party as one of the insured or deny to the
insurer acquisition by subrogation of rights of recovery against the other
party to the extent such rights have been waived by the insured party prior to
occurrence of loss or injury.  On
reasonable request, each party shall be entitled to have certificates of
policies containing such provisions. 
Having obtained such clauses or endorsements, each party hereby agrees
that it will not make any claim against or seek to recover from the other or
its agents or employees for any loss or damage to its property or the property
of others from causes which are covered or required under this Lease to be
covered by such party’s insurance regardless of the cause or origin of such
loss or damage, including without limitation, the negligence of such other
party or its agents or employees.

 

11

 

SECTION 7

Utilities and Services; Common Area Maintenance Expenses

 

Section 7.1.   Utilities and Services.  As part of Tenant’s initial work at the
Premises, Tenant shall install a separate meter, at Tenant’s expense, to
measure all of Tenant’s electricity usage at the Premises.  Tenant shall pay the utility company
directly for all electric service to the Premises and shall pay to the utility
companies directly for all telephone and telecommunications service to the
Premises and for any other separately metered utilities to the Premises.  Landlord shall separately meter or sub-meter
all of the other tenant spaces in the Building for electricity usage.

 

Section 7.2.  Sub-Metering.  As part of Tenant’s initial work at the
Premises, Tenant shall install sub-meters, at Tenant’s sole cost and expense,
to measure gas and water consumption for the Premises.  Tenant shall pay Landlord the cost of such
utilities based on Tenant’s consumption as measured by such submeter.  All payments due to the Landlord under the prior
sentence of this Section 7.2 shall constitute Additional Rent and shall be paid
by Tenant on the first day of the calendar month following Tenant’s receipt of
Landlord’s invoice for such usage. 
Landlord may elect to install separate meters for all other utilities to
the Premises and the costs of installing, maintaining and reading such meters
shall be borne by Tenant and utility services measured thereby shall be paid by
Tenant directly to the utility company or other provider.  Landlord shall also separately meter or
sub-meter all of the other tenant spaces in the Building for gas usage and
water usage.

 

Section 7.3.     Non-Separately Metered or
Submetered Metered Utilities. 
Tenant shall pay to Landlord Tenant’s Proportionate Fraction of all
charges for all non-separately metered or non-submetered water, sewer, gas,
electricity and other utilities or services (excluding costs related to the
sewer pumping station which costs are reimbursed pursuant to Section 7.6 of
this Lease ) used or consumed in the common areas of the Building or at the Lot
or elsewhere in the Park, and not in any leasable areas in the Building or the
Park, whether called charge, tax, assessment, fee or otherwise, including,
without limitation, water and sewer use charges and taxes, if any, such charges
to be paid on the first day of the calendar month following Tenant’s receipt of
Landlord’s invoice therefor.  If
Tenant’s use of any of such utilities or services shall be disproportionately
excessive, Tenant shall pay such share of the same as Landlord may reasonably
consider appropriate.

 

Section 7.4.   Connection and Use of Utility Equipment.  Tenant shall maintain, repair and replace
all telephone, information system and other utility lines and equipment
contained within and exclusively serving the Premises (together with any lines
and equipment that are located outside of the Premises that are installed by
Tenant) together with any such lines and equipment from the point of any common
connection to the Premises, and keep the same in good working order, condition
and repair.  Tenant shall not use any
equipment or fixtures so as to exceed the safe and lawful capacity of any
utility equipment or lines serving the same. 
The alteration, replacement or connection of any utility equipment and
lines shall be subject to the requirements of Section 10.4 hereof.  Subject to the rights of Landlord and other
tenants to access and use the same and to Tenant’s obligation to maintain and
repair its own connections to the same and to remove such connections at the
expiration or sooner termination of the Term (and to perform any

 

12

 

restoration of the same caused by such installation, use and removal),
Landlord shall permit Tenant to access and connect to the utility risers,
conduits, wires and feeders in the Building to enable Tenant to procure the
utilities necessary for its business operations; provided that Tenant’s access
and connections shall not exceed Tenant’s Proportionate Fraction of the total
capacity of such items.

 

Section 7.5.   Interruption of Services.  Landlord shall not be liable for any failure
to furnish, or interruption in furnishing, any of the services or utilities
described in this Section, due to any cause or for any other reason, and, in
such event, Tenant shall not be entitled to any damages nor shall any failure
or interruption abate or suspend Tenant’s obligation to pay rent under this
Lease or constitute a constructive eviction of Tenant or entitle Tenant to
terminate this Lease.  Further, if any
governmental authority or public utility promulgates or revises any applicable
law, ordinance, rule or regulation, or issues mandatory or voluntary controls
relating to the use or conservation of energy, water, gas, light or
electricity, the reduction of emissions, or the provision of any other utility
or service, Landlord may take any reasonably appropriate action to comply with
the same and Tenant’s obligations hereunder shall not be affected thereby.  Notwithstanding any terms and provisions of
this Lease to the contrary, if (i) an interruption or stoppage of an “Essential
Service” (as said term is hereinafter defined) shall occur, except any of the
same due to any act or neglect of Tenant or Tenant’s agents, employees,
contractors or invitees or any person claiming by, through or under Tenant (any
such interruption or stoppage of an Essential Service being hereinafter
referred to as a “Service Interruption”), and (ii) such Service Interruption
continues for more than seven (7) Days after Landlord shall have received
notice thereof from Tenant and such Service Interruption is within Landlord’s
reasonable control to remedy and (iii) as a result of such Service
Interruption, the conduct of Tenant’s normal operations in the Premises are
materially and adversely affected, then there shall be an abatement of one
day’s Fixed Rent and Additional Rent for each day during which such Service
Interruption continues after such seven (7) day period; provided, however, that
if any part of the Premises is reasonably useable for Tenant’s normal business
operations or if Tenant conducts all or any part of its operations in any
portion of the Premises notwithstanding such Service Interruption, then the
amount of each daily abatement of Basic Rent and additional rent shall only be
proportionate to the nature and extent of the interruption of Tenant’s normal
operations or ability to use the Premises. 
For purposes hereof, the term “Essential Services” shall mean the
following services:  water and
sewer/septic service, HVAC service (but not any HVAC service to be provided by
Tenant’s supplemental equipment), electricity and access to the Premises.

 

Section 7.6.  Common Area Maintenance Expenses.  Tenant shall pay to Landlord, as Additional
Rent, Tenant’s Proportionate Fraction of (i) Landlord’s costs and expenses
incurred under Section 9 and (ii) the Building’s Share of the costs and
expenses incurred in connection with the maintenance, repair and snowplowing
expenses for the North Parking Areas and for the common utility systems and
equipment serving the Park, including, without limitation, the storm drainage
system, including a reasonable management fee payable to Landlord, except that
with respect to the costs and expenses relating to the sewer pumping station
serving the Park, Tenant’s share of these costs and expenses shall instead be based
on and limited to Tenant’s water consumption for its operations at the Premises
in comparison to the overall water consumption at the Park and at the lot
adjacent to the Park

 

13

 

utilizing such sewer pumping station for the same period of measurement
by the other parties and functions served by the sewer pumping station
(collectively, the costs and expenses described in this sentence shall be
referred to herein as “common area maintenance expenses”).  Such common area maintenance expenses for
each year shall include the costs of repairs and replacements performed by
Landlord in accordance with sound building management practices and shall
include the “Pass-Through Capital Expenditures” described in Item No. 3 of Exhibit
H hereto.  Except to the extent
provided otherwise in Exhibit H, in no event shall common area
maintenance expenses include any of the costs listed on Exhibit H.  To the extent repairs or maintenance covered
by Section 9 are required due to Tenant’s negligence or willful misconduct,
Landlord shall effect such repairs or maintenance at Tenant’s sole expense.

 

SECTION 8

Payments on Account

 

Section 8.1.     Payments on Account.  Tenant shall pay to Landlord at Landlord’s
Payment Address on account as Additional Rent, on the first day of each month
during the term, such amounts as Landlord may reasonably determine from time to
time will be sufficient to provide in the aggregate funds adequate to pay all
amounts to be paid by Tenant pursuant to Sections 5, 6 and 7, as and when such
amounts become due and payable. 
Landlord shall periodically account (but no more than once a year) to
Tenant for such payments and any balance owed by Tenant shall be paid to Landlord
on the first day of the month following the receipt of Landlord’s bill
therefor.  Any excess paid by Tenant
shall, at Landlord’s option, either be paid by Landlord to Tenant or credited
against the next installment of Fixed Rent or Additional Rent becoming
due.  If this Lease shall terminate on a
day other than the last day of a billing year, the amount of Tenant’s payments
under this Section 8 for such billing year shall be prorated on the basis of
the number of days of such partial billing year, and after termination of the
Lease, the payments shall be compared to the actual expenses and the above
reconciliation and payments shall be made as is set forth in this Section 8.1.

 

SECTION 9

Landlord’s Covenants

 

Section 9.1.     Building Maintenance.  Subject to Sections 10 and 11, Landlord
shall maintain and repair the exterior walls (exclusive of glass and doors and
exclusive of the interior surfaces of the exterior walls, all of which Tenant
shall maintain and repair), roof, foundation, structural supports of the
Building, the vapor barrier and sub-slab venting system in the Building,
downspouts, and the common Building systems including, without limitation, the
common HVAC, electrical and plumbing systems and the common fire/life systems
serving the Building and the Premises in good working order, repair and
condition except for reasonable wear and tear and except that, notwithstanding
any other terms or provisions of this Lease to the contrary, in no event shall
Landlord be obligated to maintain, repair or replace any portion of the
“Controlled Areas” (as such term is defined in Section

 

14

 

10.6) or any equipment, systems, utility lines, plumbing, wiring or
other items located in, or directly above or below, the Controlled Areas,
except for non-Tenant installed items located directly above or below the
Controlled Areas that can be reasonably accessed by Landlord without entering
into or affecting the Controlled Areas.

 

Section 9.2      Common
Area Lot Maintenance.  Subject to
Sections 10 and 11, Landlord shall maintain and repair, in good working order,
repair and condition (subject to reasonable wear and tear), the roads,
sidewalks, landscaping, drainage (including without limitation catch basins and
detention ponds), the sewer pumping station, common area lighting facilities,
storm sewers, sanitary sewers and water main and lines located on the Lot, if
any, and the other common areas on the Lot, including the North Parking Areas
and other parking areas and Landlord’s signs, and shall clean and provide snowplowing
for the same.

 

Section 9.3      Covenant
to Provide Services.  Landlord shall
furnish to the Premises and the common areas of the Building, the following
services and utilities:  (a) a
reasonable amount of water from the City of Fall River; (b) heat and air
conditioning commensurate with office buildings in the Fall River area for the
use and occupation of the Premises during the building hours of Monday to
Friday, 8 a.m. to 5:30 p.m. and Saturday, 9 a.m. to 1:00 p.m. provided that
Tenant shall be responsible to deliver any supplemental heating and air
conditioning for Tenant’s specific uses; (c) elevator service by nonattended
automatic elevators, if applicable; and (d) so long as the utility company is
providing the same, electricity for lighting, convenience outlets and other
customary uses.  In the event that
Tenant desires to install additional equipment and components necessary to
increase the capacity of utilities for the Premises, subject to obtaining
Landlord’s prior written approval for such installations (and plans and
specifications for the same), which approval shall not be unreasonably
conditioned, withheld or delayed, Tenant shall have the right to perform such
installations at its sole cost and expense, subject to the provisions of
Section 10.9 of this Lease.

 

Section 9.4      AUL
and Order of Conditions.  Landlord
shall, at its sole cost and expense, without including the costs for the same
in common area maintenance expenses, comply with and perform its obligations,
if any, under the Activity and Use Limitation and the Order of Conditions that
have been recorded against the Lot and the Park.

 

SECTION 10

Tenant’s Covenants

 

Section 10.1.   Use.  Tenant shall use the Premises only for the
Permitted Uses and shall from time to time procure all licenses and permits
necessary therefor at Tenant’s sole expense. 
In no event shall Tenant use the Premises for general manufacturing,
warehousing, wholesaling or retail uses. 
Landlord represents and warrants that, according to the Fall River
Zoning Ordinance, biotechnology uses are permitted as of right under the Fall
River Ordinance Division Research and Development Overlay District Regulations
Sections 86-385 through 86-389.

 

15

 

Section 10.2.  Repair and Maintenance.  Except as otherwise provided in Sections 9
and 11, Tenant shall keep and maintain the Premises, including (a) all portions
of the plumbing, electrical, heating, air conditioning and other systems
installed by Landlord (but only to the extent located within the Premises and
exclusively serving the same) and (b) all of the Approved Specialized Tenant
Improvements (and any other systems, equipment and appurtenances installed by
Tenant, whether located within the Premises or not), in good order, condition
and repair and in at least as good order, condition and repair as they are in
on the Commencement Date or may be put in during the Term, reasonable use and
wear and damage by casualty and loss by taking only excepted.  In addition to the above, Tenant shall keep
and maintain, at Tenant’s sole cost and expense, all portions of the
“Controlled Areas” (as such term is defined in Section 10.6) (and all
equipment, systems, utility lines, plumbing, wiring or other items located in,
or directly above or below, the Controlled Areas, except for non-Tenant
installed items located directly above or below the Controlled Areas that can
be reasonably accessed by Landlord without entering or affecting the Controlled
Areas) in good order, condition and repair, and in at least as good order,
condition and repair as they are in on the Commencement Date or may be put in
during the Term, reasonable use and wear and damage by casualty and loss by
taking only excepted.  Tenant shall make
all repairs and replacements and do all other work necessary for the foregoing
purposes to Building standards, whether the same may be ordinary or
extraordinary, foreseen or unforeseen. 
Landlord shall have the right to inspect all repairs, replacements and
maintenance performed by Tenant to the Premises and the items located
therein.  Tenant shall provide its own
janitorial services, rubbish and trash disposal, and pest and rodent control
within the Premises and shall pay for all electrical light bulbs, lamps and
tubes used in the Premises.

 

Section 10.3.   Compliance with Law and
Insurance Requirements.  Tenant
shall make all repairs, alterations, additions or replacements to the Premises
required by any law or ordinance or any order or regulation of any public
authority but only to the extent such compliance is required (i) because of
Tenant’s particular use of, or particular type or manner of business operations
conducted by Tenant in, the Premises (as opposed to biotechnology use
generally) or (ii) because of Tenant’s construction, use and operation of the
Controlled Areas, and shall keep the Premises equipped with all safety
appliances so required.  Tenant shall
not dump, flush, or in any way introduce any hazardous substances or any other
toxic substances into the septic, sewage or other waste disposal system serving
the Premises, or generate, store or dispose of hazardous substances in or on
the Premises or dispose of hazardous substances from the Premises to any other
location unless the same is performed in compliance with the Resource Conservation
and Recovery Act of 1976, as amended, 42 U.S.C. §6901 et seq., the
Massachusetts Hazardous Waste Management Act, M.G.L. c.21C, as amended, the
Massachusetts Oil and Hazardous Material Release Prevention and Response Act,
M.G.L. c. 21E, as amended, and all other applicable codes, regulations,
ordinances and laws and unless the same is performed in accordance with
accepted good and safe industry standards and practices.  Tenant shall notify Landlord of any incident
which would require the filing of a notice under Chapter 232 of the Acts of
1982 and shall comply with the orders and regulations of all governmental
authorities with respect to zoning, building, fire, health and other codes,
regulations, ordinances or laws applicable to the Premises.  “Hazardous substances” as used in this
Section shall mean “hazardous substances” as defined in the Comprehensive
Environmental Response Compensation and Liability Act of 1980, as amended, 42
U.S.C. §9601 and regulations adopted pursuant to

 

16

 

said Act and shall include, without limitation, any biogens or
organisms that are produced, stored, used or disposed of in connection with
Tenant’s operations at the Premises.

 

Except for repairs, alterations, additions or replacements in the
Controlled Areas, Landlord may, if it so elects, make any of the repairs,
alterations, additions or replacements referred to above in this Section 10
which affect the Building structure or the Building systems, and Tenant shall
reimburse Landlord for the actual reasonable costs thereof within thirty (30)
days after receipt of an invoice from Landlord evidencing such expenditures.

 

Prior to the commencement of Tenant’s operations at the Premises and
then once annually (and more frequently, if reasonably requested by Landlord in
connection with a proposed financing or acquisition), Tenant shall provide
Landlord with a listing of any hazardous substance maintained, used or produced
on the Premises by Tenant.  Tenant shall
also provide Landlord with a copy of the list of such hazardous substances that
Tenant delivers to the Fall River Fire Department.  Tenant shall obtain all necessary permits for its use,
production, storage and disposal of hazardous substances in, on or about the
Premises, the Building, the Lot or the Park and shall comply with all laws
applicable thereto and shall comply with all conditions in such permits.

 

Subject to the provisions of Section 10.6 of this Lease, Landlord shall
have the right, upon reasonable advance notice to Tenant, to make such
inspections as Landlord shall reasonably elect from time to time to determine
if Tenant is complying with this Section.

 

Without limiting the generality of the foregoing, Tenant shall also
comply with all applicable laws, rules, regulations, codes, ordinances and
mandates of the Food and Drug Administration (the “FDA”) applicable to Tenant’s
use of the Premises, including without limitation, maintaining an emergency
plan and clean rooms.

 

Tenant shall comply promptly with the commercially reasonable
recommendations of any insurer of the Building which may be applicable to the
Premises by reason of Tenant’s construction, use and operation of the
Controlled Areas or by reason of Tenant’s particular use of the Premises,
including its use, production, storage or disposal of hazardous substances, to
the extent such recommendations are commercially reasonable with respect to the
intended and Permitted Uses for the Premises. 
In no event shall any activity be conducted by Tenant on the Premises
which may give rise to any cancellation of any then insurance policy of
Landlord on the Building or make any such insurance unobtainable.

 

Section 10.4.   Tenant’s Work.  Except as otherwise described in this
Section 10.4, Tenant shall not make any installations, alterations, additions
or improvements in or to the Premises, including, without limitation, any
appertures in the walls, partitions, ceilings or floors, without on each
occasion obtaining the prior written consent of Landlord (i) which consent, as
to installations, alterations, additions or improvements that do not affect the
Building systems or the structure of the Premises or the Building, shall not be
unreasonably withheld or delayed and (ii) which consent shall not be necessary
as to cosmetic improvements (i.e., painting and carpeting) that does not cost
more than $10,000 in any one instance. 
Any such work so approved by Landlord shall be performed only in
accordance with plans and specifications (except for cosmetic improvements) and
a construction

 

17

 

schedule therefor reasonably approved in advance by Landlord.  Tenant shall procure at Tenant’s sole
expense all necessary permits and licenses before undertaking any work on the
Premises and shall perform all such work in a good and workmanlike manner
employing materials of good quality and so as to conform with all applicable
zoning, building, fire, health and other codes, regulations, ordinances and
laws and with all applicable insurance requirements.  Prior to commencing any work at the Premises, Tenant shall
provide Landlord with a copy of the executed contract with the general
contractor for such work.  If requested
by Landlord, Tenant shall furnish to Landlord prior to the commencement of any
such work a bond or other security acceptable to Landlord assuring that any
work by Tenant will be completed in accordance with the approved plans and
specifications.  Tenant shall keep the
Premises at all times free of liens for labor and materials.  Tenant shall employ for such work only
contractors approved by Landlord, which approval shall not be unreasonably
withheld, and shall require all contractors employed by Tenant to carry
worker’s compensation insurance in accordance with statutory requirements and
commercial public liability insurance covering such contractors on or about the
Premises in amounts that at least equal the limit of $2,000,000 and to submit
certificates evidencing such coverage to Landlord prior to the commencement of
such work.  Tenant shall save Landlord
harmless and indemnified from all injury, loss, claims or damage to any person
or property occasioned by or growing out of such work.  Subject to compliance with the terms of
Section 10.6 of this Lease, Landlord may inspect the work of Tenant at
reasonable times and give notice of observed defects.

 

Subject to the above provisions of this Section 10.4, including the
submission of final plans and specifications to Landlord for Landlord’s
approval, and so long as Tenant’s engineer or architect certifies to Landlord
that such items, once installed, will either be compatible with the Building’s
plumbing, electrical and mechanical systems or Tenant will perform such
upgrades or modification to the applicable systems in the Building necessary to
achieve such compatibility (subject to Landlord’s prior written approval of
Tenant’s request to perform the same and to the plans and specifications for
the same, which approval shall not be unreasonably withheld, delayed or
conditioned), Tenant shall have the right to install the specialized tenant
improvements that are mutually agreed to by Landlord and Tenant after the date
hereof (the “Approved Specialized Tenant Improvements”).  Once the Approved Specialized Tenant
Improvements are agreed to, Landlord and Tenant shall enter into a letter
agreement acknowledging the same and acknowledging that the list of such agreed
to items shall be deemed to be attached to this Lease as Exhibit E.  Tenant shall perform all necessary
maintenance, repairs and replacements of the Approved Specialized Tenant
Improvements throughout the Lease Term. 
Landlord acknowledges and agrees that Landlord has reviewed and approved
the space plan attached hereto as Exhibit F (the “Space Plan”).  Landlord shall not unreasonably withhold,
delay or condition its approval of the final plans and specifications (the
“Final Plans”) for the leasehold improvements shown on the Space Plan and the
Approved Specialized Tenant Improvements so long as such final plans are, in
Landlord’s good faith judgment, substantially in accordance with the Space Plan
and Exhibit E and do not contain any material modifications and so long
as such Final Plans are accompanied by the certification referred to above in
this paragraph.  If the Final Plans
contain any material modifications to the Space Plan or Exhibit E,
Landlord’s approval of the Final Plans will not be unreasonably withheld,
conditioned or delayed so long as such Final Plans are accompanied by the
certification referred to above in this

 

18

 

paragraph.  Landlord shall
respond to Tenant’s request for approval of the list of Approved Specialized
Tenant Improvements, the Final Plans, and any subsequent changes to the list or
the Final Plans after approval, as applicable, within ten (10) days following
receipt of Tenant’s request for such approval. 
If Landlord fails to respond to Tenant’s request for approval within
such ten (10) day period, then for all purposes of this Lease, Landlord will be
deemed to have approved (without electing to require the removal of the items
listed or shown thereon at the expiration or earlier termination of the Lease
Term) the list, the Final Plans, and any subsequent changes, as applicable,
submitted by Tenant.

 

Notwithstanding any terms or provisions of this Lease to the contrary,
the Approved Specialized Tenant Improvements, once installed, shall become
Landlord’s sole and exclusive property and shall be part of the Premises,
subject only to Tenant’s right to use the same at the Premises during the
Original Term and any Extension Term in connection with its operations at the
Premises.

 

Section 10.5.   Indemnity.  Tenant shall defend, with counsel reasonably
approved by Landlord, all actions against Landlord, any partner, trustee,
stockholder, officer, director, employee or beneficiary of Landlord, holders of
mortgages secured by the Building and any other party having an interest in the
Premises (“Indemnified Parties”) with respect to, and shall pay, protect,
indemnify and save harmless, to the extent permitted by law, all Indemnified
Parties from and against, any and all liabilities, losses, damages, costs,
expenses (including reasonable attorneys’ fees and expenses), causes of action,
suits, claims, demands or judgments of any nature arising from (a) injury to or
death of any person, or damage to or loss of property, occurring in the
Premises or proximately caused by the use, condition or occupancy of the
Premises by Tenant except to the extent caused by the negligence of Landlord or
its agents, employees or contractors, (b) violation of this Lease by Tenant, or
(c) any act, fault, omission, or other misconduct of Tenant or its agents,
contractors, licensees, sublessees or invitees.

 

Section 10.6    Landlord’s
Right to Enter.  Upon at least three
(3) days’ prior notice, except during the pendency of a default by Tenant under
this Lease that extends beyond the expiration of applicable notice and cure
periods, and except in the case of an emergency, when in each case no prior notice
shall be required, Tenant shall permit Landlord and its agents to enter into
the portions of the Premises that are not one of the “Controlled Areas” at
reasonable times, to examine the Premises, make such repairs and replacements
as Landlord may elect or as Landlord may be required to make, without however,
any obligation to do so, and to show the Premises to prospective purchasers and
lenders, and, during the last year of the term, to show the Premises to
prospective tenants and to keep affixed in suitable places notices of
availability of the Premises; provided, however, that except in the case of an
emergency or during the pendency of a default by Tenant under this Lease that
extends beyond the expiration of applicable notice and cure periods, such access
shall only be performed when escorted by a representative of Tenant.  Landlord acknowledges that Tenant’s business
operations require strict compliance with federal and state regulations
regarding the development, production and testing of human use biological
products and, therefore, Landlord covenants that its representative (and any
access of the Premises by Landlord or anyone claiming by, through or under
Landlord) shall comply in all respects with such regulations.

 

19

 

Tenant intends to use certain portions of the Premises for
experimentation, testing and development of highly sensitive materials and
vaccines and, in order to establish the necessary control setting for such
experimentation, testing, and development, such portions of the Premises (each
such portion a “Controlled Area” and collectively the “Controlled Areas”) will
need to be segregated and properly sealed off from the other portions of the
Premises.  Prior to taking occupancy,
Tenant shall provide Landlord with a plan that clearly identifies which
portions of the Premises shall be Controlled Areas and Tenant shall, to the
extent practicable, install signage outside of each Controlled Area reasonably
identifying it as a “Controlled Area.” 
Upon at least three (3) days’ prior notice, except during the pendency
of a monetary or other material default by Tenant under this Lease that extends
beyond the expiration of applicable notice and cure periods, and except in the
case of emergency which requires immediate access to the Controlled Areas, when
in each case no prior notice shall be required, Tenant shall permit a
“Qualified Representative of Landlord” (as hereinafter defined) to enter the
Controlled Areas at reasonable times to perform inspections of the Controlled
Areas and to make such repairs and replacements therein as may be necessary;
provided, that, except during the pendency of a monetary or other material
default by Tenant under this Lease that extends beyond the expiration of applicable
notice and cure periods, and except in the case of an emergency which requires
immediate access to the Controlled Areas, such entry by a “Qualified
Representative of Landlord” shall only be performed when escorted by a
representative of Tenant.  A “Qualified
Representative of Landlord” shall mean an individual that possess the
credentials and the training required to enter and inspect a facility (a)
regulated by the FDA and (b) which is engaged in business operations of the
type Tenant will be carrying on in the Premises.  Landlord shall submit information and documentation reasonably
required by Tenant or any other governmental entity to establish an
individual’s qualification as a Qualified Representative of Landlord in advance
of any such entry and Tenant shall reasonably cooperate in good faith with
Landlord in approving such individual as a Qualified Representative of
Landlord.  Landlord shall apprise the
Qualified Representative of Landlord of the sensitivity of Tenant’s operations
that are to be conducted in the Controlled Areas and shall use all diligent,
good faith efforts to cause such party to adhere to all applicable legal
requirements, all requirements of the FDA applicable to such access and
Tenant’s reasonable guidelines and safety rules for entering the Controlled
Areas, including wearing protective clothing and masks before entering the
Controlled Areas in order to protect the processes that Tenant will be
conducting in the Controlled Areas.

 

Section 10.7    Personal
Property at Tenant’s Risk.  All
furnishings, fixtures, equipment, effects and property of every kind of Tenant
and of all persons claiming by, through or under Tenant which may be on the
Premises, shall be at the sole risk and hazard of Tenant and if the whole or
any part thereof shall be destroyed or damaged by fire, water or otherwise, or
by the leakage or bursting of water pipes, steam pipes, or other pipes, by
theft or from any other cause, no part of said loss or damage shall be charged
to or to be borne by Landlord, except that Landlord shall in no event be
indemnified or held harmless or exonerated from any liability to Tenant for any
injury, loss, damage or liability not covered by Tenant’s insurance to the
extent prohibited by law.  Tenant shall
insure Tenant’s equipment and personal property.

 

20

 

Section 10.8    Payment
of Landlord’s Cost of Enforcement. 
Tenant shall pay, on demand, Landlord’s expenses, including reasonable
attorney’s fees, incurred in enforcing or curing any obligation of Tenant under
this Lease following a default by Tenant beyond applicable notice and cure
periods (which notice and cure periods shall be shortened as reasonably
necessary in the event of an emergency) under this Lease as provided in Section
12.4.

 

Section 10.9    Yield
Up.  At the expiration of the term
or earlier termination of this Lease (but subject, however, to the terms and
provisions of the “Security Agreement” (hereinafter defined), Tenant shall
surrender all keys to the Premises, remove all of its equipment, trade fixtures
and other personal property in the Premises (including any of the Collateral
under the Security Agreement), remove such installations and improvements made
by Tenant as Landlord may request in writing at the time Landlord approves such
installation and all Tenant’s exterior signs, if any, wherever located, repair
all damage caused by such removal and yield up the Premises (including any
installations and improvements made by Tenant which Landlord has not notified
Tenant at the time of Landlord’s approval must be removed at the expiration or
earlier termination of the Lease Term) broom-clean and in the same good order
and repair in which Tenant is obliged to keep and maintain the Premises under
this Lease.  Any property not so removed
shall be deemed abandoned and may be removed and disposed of by Landlord in
such manner as Landlord shall determine and Tenant shall pay Landlord the
entire cost and expense incurred by it in effecting such removal and
disposition and in making any incidental repairs and replacements to the
Premises and for use and occupancy during the period after the expiration of
the term and prior to Tenant’s performance of its obligations under this
Section 10.9.  In no event, however,
shall Tenant remove any of the Approved Specialized Tenant Improvements.  Notwithstanding anything herein to the
contrary, Tenant agrees that, upon the expiration or earlier termination of the
Term, (i) Tenant shall deliver the Premises to Landlord in substantial
compliance with good manufacturing procedures then in effect or good laboratory
procedures then in effect, as and to the extent such procedures are applicable
to the manner in which the facility was utilized by Tenant immediately prior to
the expiration or earlier termination of the Term and (ii) Tenant shall perform
any necessary de-contamination of the Controlled Areas to ensure that the
Premises are free of any hazardous substances from Tenant’s operations and
shall provide customary documentation (including a testing report comparing the
air testing results initially performed by Tenant upon commencement of its
operations at the Premises to the air testing results performed after such
de-contamination performed at the expiration or earlier termination of the
Term) to Landlord evidencing that such de-contamination has been performed.

 

Section 10.10  Estoppel
Certificate.  Upon not less than
five (5) business days’ prior notice by Landlord, Tenant shall execute,
acknowledge and deliver to Landlord a statement in writing certifying that this
Lease is unmodified and in full force and effect and that, except as stated
therein, Tenant has no knowledge of any defenses, offsets or counterclaims
against its obligations to pay the Fixed Rent and Additional Rent and any other
charges and to perform its other covenants under this Lease (or, if there have
been any modifications that the same is in full force and effect as modified
and stating the modifications and, if there are any defenses, offsets or
counterclaims, setting them forth in reasonable detail), the dates to which the
Fixed Rent and Additional Rent and other charges have been paid and a statement

 

21

 

that Landlord is not in default hereunder (or if in default, the nature
of such default, in reasonable detail). 
Any such statement delivered pursuant to this Section 10.10 may be
relied upon by any prospective purchaser, mortgagee of the Building or other
interested party.

 

Upon not less than five (5) business days’ prior notice by Tenant,
Landlord shall execute, acknowledge and deliver to Tenant a statement in
writing certifying that this Lease is unmodified and in full force and effect
and that, except as stated therein, Landlord has no knowledge of any defenses,
offsets or counterclaims against Tenant’s obligations to pay the Fixed Rent and
Additional Rent and any other charges and to perform its other covenants under
this Lease (or, if there have been any modifications that the same is in full
force and effect as modified and stating the modifications and, if there are
any defenses, offsets or counterclaims, setting them forth in reasonable
detail), the dates to which the Fixed Rent and Additional Rent and other
charges have been paid and a statement that Tenant is not in default hereunder
(or if in default, the nature of such default, in reasonable detail).  Any such statement delivered pursuant to
this Section 10.11 may be relied upon by any prospective lender, underwriter,
assignee or subtenant of Tenant or other interested party.

 

Section 10.11  Landlord’s
Expenses Re Consents.  Tenant shall
reimburse Landlord promptly on demand for all reasonable legal and other
expenses incurred by Landlord in connection with all requests by Tenant for
consent or approval hereunder.

 

Section 10.12  Rules
and Regulations.  Tenant shall abide
by, and faithfully observe and comply with, the Rules and Regulations, and by
any other subsequent rules and regulations adopted from time to time by
Landlord and any reasonable amendments or additions thereto for the use,
safety, security, good order, cleanliness and other matters concerning the
Premises, the Building and Lot, the North Parking Areas and the Park; provided
such subsequent rules and regulations do not materially affect Tenant’s rights
under this Lease.  Landlord shall not be
liable to Tenant for any violations of such rules and regulations and
amendments or additions thereto by any other tenant or occupant of the Building
or the Park.

 

Section 10.13  Holding
Over.  Tenant shall vacate the Premises
immediately upon the expiration or sooner termination of this Lease.  If Tenant retains possession of the Premises
or any part thereof after the termination of the term without Landlord’s
express consent, Tenant shall pay Landlord rent at the greater of (i) 1 1/2
times the daily rate of the annual amount of rent then most recently in effect
under Section 1 or (ii) the fair market rental, in each case for the time
Tenant thus remains in possession and, in addition thereto, if such retention
of possession shall continue for more than sixty (60) consecutive days, Tenant
shall pay Landlord for all damages, consequential as well as direct, sustained
by reason of Tenant’s retention of possession. 
The provisions of this Section do not exclude Landlord’s rights of
re-entry or any other right hereunder, including without limitation, the right
to refuse the monthly rent provided for in this Section 10.13 and instead to
remove Tenant through summary proceedings for holding over beyond the
expiration of the term of this Lease.

 

Section 10.14  Assignment
and Subletting.  Tenant shall not
assign, transfer, mortgage or pledge this Lease or grant a security interest
(except as set forth in the Security Agreement)

 

22

 

in Tenant’s rights hereunder or sublease (which term shall be deemed to
include the granting of concessions and licenses and the like) all or any part
of the Premises or suffer or permit this Lease or the leasehold estate hereby
created or any other rights arising under this Lease to be assigned,
transferred or encumbered, in whole or in part, or permit the occupancy of the
Premises by anyone other than Tenant. 
Any attempted assignment, transfer, mortgage, pledge, grant of security
interest, sublease or other encumbrance (each being referred to herein as a
“Transfer”), except with prior written approval thereof from Landlord, shall be
void.  No assignment, transfer,
mortgage, grant of security interest, sublease or other encumbrance, whether or
not approved, and no indulgence granted by Landlord to any assignee or
sublessee, shall in any way impair the continuing primary liability (which
after an assignment shall be joint and several with the assignee) of Tenant
hereunder, and no approval in a particular instance shall be deemed to be a
waiver of the obligation to obtain Landlord’s approval in any other case.  Notwithstanding any terms or provisions of
this Lease to the contrary, but subject to the prior sentence, Tenant shall
have the right to sublet all of the Premises or assign this Lease, without the
need to obtain Landlord’s prior consent, to (1) an entity that controls, is
under common control with, or is controlled by Tenant; or (2) an entity with
whom Tenant merges or consolidates or to an entity that acquires all or
substantially all of Tenant’s assets (each of the entities set forth in (1) and
(2) above, an “Approved Entity”) so long as (i) Tenant provides Landlord at
least thirty (30) days’ prior notice of such proposed assignment or sublease,
(ii) the Approved Entity assumes, in a writing to Landlord, all of Tenant’s
obligations under this Lease and under the “Security Agreement” (as such term
is defined in Section 12), the “Note” (as such term is defined in Section 12)
and related financing documents (collectively, the “Equipment Loan Documents”),
(iii) Tenant remains liable, on a joint and several basis with the assuming
party, for all of Tenant’s obligations under this Lease and under the Equipment
Loan Documents, (iv) Tenant shall take all actions requested by Landlord to
confirm Landlord’s security interest in the “Collateral” described in the
Security Agreement, (v) the Approved Entity shall use the Premises for only the
Permitted Uses (collectively, a “No-Consent Required Transfer”).  In no event shall Tenant, however, sell all
or substantially all of its assets unless this Lease shall be assigned to, and
assumed by, the party acquiring such assets.

 

Except in
connection with a No-Consent Required Transfer, if Tenant desires to Transfer
this Lease or any interest herein, then at least forty-five (45) days but not
more than one hundred eighty (180) days prior to the effective date of the
proposed Transfer, Tenant shall submit to Landlord:  (i) a statement containing the name and address of the proposed
Transferee; (ii) such financial information with respect to the proposed
Transferee as Landlord shall reasonably require; (iii) the type of use proposed
for the Premises and (iv) all of the principal terms of the proposed Transfer.

 

Landlord’s
consent to a proposed Transfer shall not be unreasonably withheld, conditioned
or delayed; but, in addition to any other grounds for denial, Landlord’s
consent shall be deemed reasonably withheld if, in Landlord’s good faith
judgment:  (i) the proposed Transferee
does not have the financial strength to perform its obligations under this
Lease or any proposed sublease or license; (ii) the business and operations of
the proposed Transferee are not of comparable quality or type to the business
and operations being conducted by Tenant or other tenants at the Building or
the Park or would not otherwise be in compliance with the terms

 

23

 

hereof; (iii) either the proposed Transferee,
or any person which directly or indirectly controls, is controlled by, or is
under common control with the proposed Transferee occupies space in the
Building or the Park, or is negotiating with Landlord to lease space at the
Building or the Park; (iv) the sublet space is not regular in shape with
appropriate means of ingress and egress suitable for normal leasing purposes;
(v) Tenant is in default beyond applicable notice and cure periods at the time
Tenant requests consent to the proposed Transfer; or (vi) such assignment would
cause the interest earned on the Bonds to become taxable to the holder thereof
(and as a condition to any Transfer, Landlord may require Tenant to obtain an
opinion from Landlord’s bond counsel at Tenant’s cost, that the proposed
Transfer would not cause such interest to be taxable).

 

Within thirty
(30) days after Landlord’s receipt of any request for consent to a Transfer
(but not in the case of a No-Consent Required Transfer), Landlord may, at its
option by notice to Tenant, elect to terminate this Lease in the case of a proposed
Transfer of the entire Premises or as to the portion of the Premises subject to
the proposed Transfer, with a proportionate adjustment in the Rent and the
Specialized Tenant Allowance Reimbursement Payments (which shall be reduced
proportionately to reflect the percentage of the Approved Specialized Tenant
Improvements in the space to be terminated) payable hereunder if this Lease is
terminated as to less than all of the Premises.

 

If for any Transfer Tenant shall receive rent or other consideration,
either initially or over the term of the assignment or sublease, in excess of
the rent and the Specialized Tenant Allowance Reimbursement Payments called for
hereunder (or in the case of the sublease of part, in excess of such rent and
the Specialized Tenant Allowance Reimbursement Payments allocable to the part)
after appropriate adjustments to assure that all other payments called for
hereunder are taken into account and after deducting Tenant’s reasonable legal,
brokerage and leasehold improvement costs, all amortized ratably over the term
of the sublease or assignment, incurred for such sublease or assignment, Tenant
shall pay to Landlord, as Additional Rent, one hundred percent (100%) of such
excess of such payment of rent or other consideration received by Tenant,
promptly after its receipt.

 

If Tenant shall Transfer this Lease for all or any part of the Premises
or shall request the consent of Landlord to any Transfer, Tenant shall pay to
Landlord Landlord’s actual, bona fide, out-of-pocket costs related thereto,
including Landlord’s reasonable attorneys’ fees up to $3,000.00 and a minimum
administrative fee to Landlord of Five Hundred Dollars ($500.00).

 

In the event of a Transfer, Landlord may collect rent from the
Transferee without waiving any rights hereunder and collection of the rent from
a person other than Tenant shall not be deemed a waiver of any of Landlord’s
rights under this Section 10.14, an acceptance of such Transferee as Tenant, or
a release of Tenant from the performance of Tenant’s obligations under this
Lease.  If Tenant shall default under
this Lease and fail to cure within the time permitted, Landlord is irrevocably
authorized, as Tenant’s attorney-in-fact, to direct any Transferee to make all
payments directly to Landlord.

 

Section 10.15  Overloading
and Nuisance.  Tenant shall not
injure, overload, deface or otherwise harm the Premises, commit any nuisance,
permit the emission of any objectionable noise, vibration or odor, make, allow
or suffer any waste or make any use of

 

24

 

the Premises which is contrary to any law or ordinance or which will
invalidate any of Landlord’s insurance.

 

Section 10.16  Tenant’s
Financial Condition.  Within ten
(10) days after request by Landlord from time to time, Tenant shall deliver to
Landlord Tenant’s audited financial statements (which shall be for the latest
available year and in any event for a year ended not more than fifteen (15)
months prior to Landlord’s request); provided that the foregoing obligation
shall be waived during such time as Tenant remains obligated to file periodic
reports pursuant to Section 12 or Section 15(d) of the Securities Exchange Act
of 1934, as amended, in which case Tenant shall only be required to provide
Landlord with copies of its 10K and 10Q reports promptly after the filing of
the same with the Securities and Exchange Commission.  Such financial statements may be delivered to Landlord’s
mortgagees and lenders and prospective mortgagees, lenders and purchasers.  Tenant represents and warrants to Landlord
that each such financial statement shall be true and accurate as of the date of
such statement.

 

SECTION 11

Casualty or Taking

 

Section 11.1    Termination.  In the event that greater than twenty-five
(25) percent of the Building or the Lot shall be taken by any public authority
or for any public use or destroyed by the action of any public authority (a
“Taking”) then this Lease may be terminated by either Landlord or Tenant
effective on the effective date of the Taking.  In the event that the Premises shall be destroyed or damaged by
fire or casualty (a “Casualty”) and if Landlord’s architect, engineer or
contractor shall determine that it will require in excess of 210 days from the
date of the Casualty to restore the Premises, or if the casualty or taking is
of more than 10% of the Premises and occurs during the last twelve (12) months
of the Term then in effect, this Lease may be terminated by Landlord or Tenant
by notice to the other within thirty (30) days after the Casualty by notice to
the other party given within thirty (30) days after the Casualty.  In the case of a Taking, such election,
which may be made notwithstanding the fact that Landlord’s entire interest may
have been divested, shall be made by the giving of notice by Landlord or Tenant
to the other within thirty (30) days after Landlord or Tenant, as the case may
be, shall receive notice of the Taking.

 

Section 11.2    Restoration.  In the event of a Taking or a Casualty, if
neither Landlord nor Tenant exercises the election to terminate provided in
this Section 11, this Lease shall continue in force and a just proportion of
the Fixed Rent and other charges hereunder, according to the nature and extent
of the damages sustained by the Premises, but (if the Casualty shall have been
caused by the negligence of Tenant or Tenant’s agents, employees or
contractors) not in excess of an equitable portion of the net proceeds of
insurance recovered by Landlord under the rental insurance carried pursuant to
Section 6.2, shall be abated from the date of Casualty until the Premises, or
what may remain thereof, shall be put by Landlord in proper condition for use
subject to zoning and building laws or ordinances then in existence, which,
unless Landlord or Tenant has exercised its option to terminate pursuant to
this Section 11, Landlord covenants to do with reasonable diligence at
Landlord’s expense.  If Landlord fails
to complete the restoration after a Casualty within

 

25

 

thirty (30) days after the scheduled completion date in Landlord’s
notice (which date shall be extended for up to an additional ninety (90) days
for events beyond Landlord’s reasonable control), Tenant shall have the right
to terminate this Lease by notice given to Landlord within thirty (30) days
after such thirty (30) day period. 
Landlord’s obligations with respect to restoration shall not require
Landlord to expend more than the net proceeds of insurance recovered or damages
awarded for such Casualty or Taking and made available for restoration by
Landlord’s mortgagees.  “Net proceeds of
insurance recovered or damages awarded” refers to the gross amount of such
insurance or damages less the reasonable expenses of Landlord in connection
with the collection of the same, including without limitation, fees and
expenses for legal and appraisal services.

 

Section 11.3    Exceptions
to Landlord’s Obligations. 
Notwithstanding the foregoing, in no event shall Landlord have an
obligation to repair the Premises if either: 
(a) the Building is so damaged as to require costs of repairs exceeding
ten percent (10%) of the full insurable value of the Building; or (b) Landlord
elects to demolish the Building; or (c) the damage or destruction occurs during
the last two (2) years of the Lease Term. 
Tenant’s Fixed Rent shall not be abated if either (i) the damage or
destruction is repaired within twenty (20) business days after Landlord
received written notice from Tenant of the casualty, or (ii) Tenant or Tenant’s
employees, contractors, agents or invitees are, in whole or in part,
responsible for the damage or destruction, except that such abatement shall
apply under this clause (ii) to the extent Landlord receives rental loss
proceeds for the same.

 

Section 11.4    Award.  Irrespective of the form in which recovery
may be had by law, all rights to damages or compensation shall belong to
Landlord in all cases, except for Tenant’s right to maintain a claim for its
moving and relocation costs and costs for its trade fixtures and other personal
property.  Tenant hereby grants to
Landlord all of Tenant’s rights to such damages and compensation and covenants
to deliver such further assignments thereof as Landlord may from time to time
request.  In no event under this Lease,
however, shall the Approved Specialized Tenant Improvements be considered
Tenant’s trade fixtures or personal property.

 

SECTION 12

Default

 

Section 12.1    Events
of Default.  If:

 

(a)     Tenant
shall default in the performance of any of its obligations to pay the Fixed
Rent, Additional Rent or any other sum payable hereunder and if such default
shall continue for five (5) days after notice from Landlord designating such
default;

 

(b)     if
within thirty (30) days after notice from Landlord to Tenant specifying any
other default or defaults Tenant has not commenced to correct the default or

 

26

 

defaults so specified or, having commenced to correct the default, is
not diligently pursuing such correction to completion;

 

(c)     if
any assignment for the benefit of creditors shall be made by Tenant;

 

(d)     if
Tenant’s leasehold interest shall be taken on execution or other process of law
in any action against Tenant;

 

(e)     if
a lien or other involuntary encumbrance is filed against Tenant’s leasehold
interest, and is not discharged or bonded off within thirty (30) days
thereafter;

 

(f)      if
a default by Tenant beyond the expiration of applicable grace periods shall
exist under that certain “Security Agreement: 
Equipment” between Landlord and Tenant of even date (the “Security
Agreement”) or under that certain “Secured Promissory Note:  Equipment Loan” from Tenant to Landlord of
even date (the “Note”);

 

(g)     if
a petition is filed by Tenant for liquidation, or for reorganization or an
arrangement or any other relief under any provision of the Bankruptcy Code as
then in force and effect; or

 

(h)     if
an involuntary petition under any of the provisions of said Bankruptcy Code is
filed against Tenant and such involuntary petition is not dismissed within sixty
(60) days thereafter,

 

then, and in any of such cases, Landlord and the agents and servants of
Landlord lawfully may, in addition to and not in derogation of any remedies for
any preceding breach of covenant, immediately or at any time thereafter and
without demand or notice and with or without process of law (forcibly, if
necessary) enter into and upon the Premises or any part thereof in the name of
the whole, or mail a notice of termination addressed to Tenant, and repossess
the same as of Landlord’s former estate and expel Tenant and those claiming
through or under Tenant and remove its and their effects without being deemed
guilty of any manner of trespass and without prejudice to any remedies which
might otherwise be used for arrears of rent or prior breach of covenant, and
upon such entry or mailing as aforesaid this Lease shall terminate, Tenant
hereby waiving all statutory rights (including, without limitation, rights of
redemption, if any) to the extent such rights may be lawfully waived.  Landlord, without notice to Tenant, may
store Tenant’s effects, and those of any person claiming through or under
Tenant at the expense and risk of Tenant, and, if Landlord so elects, may sell
such effects at public auction or private sale and apply the net proceeds to
the payment of all sums due to Landlord from Tenant, if any, and pay over the
balance, if any, to Tenant.

 

Section 12.2    Remedies.  In the event that this Lease is terminated
under any of the provisions contained in Section 12.1, Tenant shall pay forthwith
to Landlord, as compensation, the excess of the total rent reserved for the
residue of the Term (except for the Specialized Tenant Allowance Reimbursement
Payments, which shall be addressed by the last sentence of this Section 12.2)
discounted to present value (using an interest rate

 

27

 

equal to the discount rate of The Federal Reserve Bank of Boston) over
the fair market rental value of the Premises for the residue of the term
discounted to present value (using an interest rate equal to the discount rate
of The Federal Reserve Bank of Boston). 
In calculating the rent reserved there shall be included, in addition to
the Fixed Rental and Additional Rent, the value of all other considerations
agreed to be paid or performed by Tenant during the residue.  As additional and cumulative obligations
after any such termination, Tenant shall also pay punctually to Landlord all
the sums and shall perform all the obligations which Tenant covenants in this
Lease to pay and to perform in the same manner and to the same extent and at
the same time as if this Lease had not been terminated, except the Specialized
Tenant Allowance Reimbursement Payments shall be paid as described below.  In calculating the amounts to be paid by
Tenant pursuant to the preceding sentence, Tenant shall be credited with any
amount paid to Landlord pursuant to the first sentence of this Section 12.2 and
also with the net proceeds of any rent obtained by Landlord by reletting the
Premises, after deducting all Landlord’s reasonable expenses in connection with
such reletting, including, without limitation, all repossession costs,
brokerage commissions, fees for legal services and expenses of preparing the
Premises for such reletting, it being agreed by Tenant that Landlord may (i)
relet the Premises or any part or parts thereof for a term or terms which may
at Landlord’s option be equal to or less than or exceed the period which would
otherwise have constituted the balance of the term hereof and may grant such
concessions and free rent as Landlord in its reasonable judgment considers
advisable or necessary to relet the same and (ii) make such alterations,
repairs and decorations in the Premises as Landlord in its reasonable judgment
considers advisable or necessary to relet the same, and no action of Landlord
in accordance with the foregoing or failure to relet or to collect rent under
reletting shall operate or be construed to release or reduce Tenant’s liability
as aforesaid.  In addition to the above
remedies available to Landlord to collect the above-described sums, and without
in any way preventing Landlord from collecting the same or diminishing the
above-described amounts that can be collected, in the event this Lease is
terminated under any of the provisions contained in Section 12.1, Tenant shall
also be obligated to pay to Landlord, on or before the date that is ten (10)
days after such termination, on an accelerated basis, the aggregate amount of
Specialized Tenant Allowance Reimbursement Payments that are due to be paid by
Tenant for the then remainder of the Original Term (i.e., the remainder as if
this Lease had not been terminated).

 

If Tenant becomes a debtor voluntarily or involuntarily, under Title 11
of the United States Code or any bankruptcy legislation serving as a substitute
or supplement therefor, or if Tenant becomes an alleged debtor in any
involuntary proceeding commenced under said legislation or otherwise becomes
subject to the jurisdiction of a federal or state court with jurisdiction to
administer the property of Tenant, and if this Lease has not been terminated or
Landlord has not been permitted to reenter and relet the Premises, then:  (i) so long as Tenant or any party claiming
under or through Tenant remains in possession of the Premises and so long as
Landlord is prohibited or prevented from taking possession of the Premises and
reletting it by reason of any such bankruptcy or insolvency proceeding, Tenant
(whether or not serving as debtor-in-possession), any statutory representative
of Tenant, and Tenant’s bankruptcy estate shall be obligated to pay to Landlord
as fair use and occupancy of the Premises an amount not less than the Fixed
Rent and Additional Rent specified in this Lease as and when such rent is due
under this Lease without requesting any deferral thereof and shall continue to
perform all other obligations under the Lease; and (ii) within sixty (60)

 

28

 

days from and after the entry of an order for relief under Sections
301, 302, or 303 of Title 11 of the United States Code or a similar assumption
by any federal or state court or jurisdiction over the administration of
Tenant’s property, Tenant shall, unless Landlord agrees in writing to a further
extension of time, exercise any available right to assume or reject this Lease
and shall not request any extension of time from any court of competent
jurisdiction to exercise such right.

 

Section 12.3    Remedies
Cumulative.  Except as otherwise
expressly provided herein, any and all rights and remedies which Landlord may
have under this Lease and at law and equity shall be cumulative and shall not
be deemed inconsistent with each other, and any two or more of all such rights
and remedies may be exercised at the same time to the greatest extent permitted
by law.

 

Section 12.4    Landlord’s
Right to Cure Defaults.  At any time
following a default by Tenant which extends beyond the applicable notice and
cure periods under Section 12.1 (except in cases of emergency when no notice
and cure period shall be required), Landlord may (but shall not be obligated
to) cure any default by Tenant under this Lease, and whenever Landlord so
elects, all costs and expenses incurred by Landlord, including reasonable
attorneys’ fees, in curing a default shall be paid by Tenant to Landlord as
Additional Rent on demand, together with interest thereon at the rate provided
in Section 12.7 from the date of payment by Landlord to the date of payment by
Tenant.

 

Section 12.5    Effect
of Waivers of Default.  Any consent
or permission by Landlord to any act or omission which otherwise would be a
breach of any covenant or condition herein, or any waiver by Landlord of the
breach of any covenant or condition herein, shall not in any way be held or
construed (unless expressly so declared) to operate so as to impair the
continuing obligation of any covenant or condition herein, or otherwise operate
to permit the same or similar acts or omissions except as to the specific
instance.  The failure of Landlord to seek
redress for violation of, or to insist upon the strict performance of, any
covenant or condition of this Lease shall not be deemed a waiver of such
violation nor prevent a subsequent act, which would have originally constituted
a violation, from having all the force and effect of an original
violation.  The receipt by Landlord of
rent with knowledge of the breach of any covenant of this Lease shall not be
deemed to have been a waiver of such breach by Landlord or of any of Landlord’s
remedies on account thereof, including its right of termination for such
default.

 

Section 12.6    No
Accord and Satisfaction.  No
acceptance by Landlord of a lesser sum than the Fixed Rental, Additional Rent
or any other charge then due shall be deemed to be other than on account of the
earliest installment of such rent or charge due, unless Landlord elects by
notice to Tenant to credit such sum against the most recent installment
due.  Any endorsement or statement on
any check or any letter accompanying any check or payment as rent or other
charge shall not be deemed an accord and satisfaction, and Landlord may accept
such check or payment without prejudice to Landlord’s right to recover the
balance of such installment or pursue any other remedy under this Lease or
otherwise.

 

Section 12.7    Interest
on Overdue Sums.  If Tenant fails to
pay Fixed Rental, Additional Rent or any other sum payable by Tenant to
Landlord by the due date thereof (i.e., the due

 

29

 

date disregarding any requirement of notice from Landlord or any period
of grace allowed to Tenant), the amount so unpaid shall bear interest at a
variable rate (the “Delinquency Rate”) equal to three percent (3%) in excess of
the base rate (prime rate) of Fleet National Bank from time to time in effect
commencing with the due date and continuing through the day on which payment of
such delinquent payment with interest thereon is paid.  If such rate is in excess of any maximum
interest rate permissible under applicable law, the Delinquency Rate shall be
the maximum interest rate permissible under applicable law.

 

SECTION 13

Mortgages

 

Section 13.1    Rights
of Mortgage Holders.  No Fixed
Rental, Additional Rent or any other charge shall be paid more than ten (10)
days prior to the due date thereof and payments made in violation of this
provision shall (except to the extent that such payments are actually received
by a mortgagee in possession or in the process of foreclosing its mortgage) be
a nullity as against such mortgagee and Tenant shall be liable for the amount
of such payments to such mortgagee.

 

In the event of any act or omission by Landlord which would give Tenant
the right to terminate this Lease or to claim a partial or total eviction,
Tenant shall not exercise any such right (a) until it shall have given notice,
in the manner provided in Section 14.1, of such act or omission to the holder
of any mortgage encumbering the Premises whose name and address shall have been
furnished to Tenant in writing, at the last address so furnished, and (b) until
a reasonable period of time for remedying such act or omission shall have
elapsed following the giving of such notice, provided that following the giving
of such notice, Landlord or such holder shall, with reasonable diligence, have commenced
and continued to remedy such act or omission or to cause the same to be
rendered.

 

In the event any proceedings are brought for the foreclosure of, or in
the event of exercise of the power of sale under, any mortgage now or hereafter
encumbering the Premises, Tenant shall attorn to the purchaser upon such
foreclosure or sale or upon any grant of a deed in lieu of foreclosure and
recognize such purchaser as Landlord under this Lease.

 

Section 13.2    Superiority
of Lease; Option to Subordinate. 
Unless Landlord exercises the option set forth below in this Section
13.2, this Lease shall be superior to and shall not be subordinate to any
mortgage on the Premises.  Landlord
shall have the option to subordinate this Lease to any mortgage of the Premises
provided that the holder of record thereof enters into an agreement in
recordable form with Tenant, in such holder’s customary form, by the terms of
which such holder will agree to (a) recognize the rights of Tenant under this
Lease, (b) perform Landlord’s obligations hereunder arising after the date
of such holder’s acquisition of title and (c) accept Tenant as tenant of the
Premises under the terms and conditions of this Lease in the event of
acquisition of title by such holder through foreclosure proceedings or
otherwise and Tenant will agree to recognize the holder of such mortgage as
Landlord in such event, which agreement shall be made expressly to bind and
inure to the benefit of the successors and assigns of Tenant and of the holder
and upon anyone purchasing the Premises at any foreclosure sale.  Tenant agrees to execute and

 

30

 

deliver any appropriate instruments necessary to carry out the
agreements contained in this Section 13.2. 
Landlord represents that, as of the date of this Lease, there is no
mortgage encumbering the Premises, the Building or the Lot.

 

SECTION 14

Miscellaneous Provisions

 

Section 14.1    Notices
from One Party to the Other.  All
notices required or permitted hereunder shall be in writing and addressed, if
to Tenant, at the Original Address of Tenant or such other address as Tenant
shall have last designated by notice in writing to Landlord, Attention:  Michael Furlong, with a copy sent to the attention
of:  Mr. Avery Catlin and, if to
Landlord, at the Original Address of Landlord or such other address as Landlord
shall have last designated by notice in writing to Tenant.  Any notice shall be deemed duly given when
delivered or tendered for delivery at such address.

 

Section 14.2    Quiet
Enjoyment.  Landlord agrees that
upon Tenant’s paying the rent and performing and observing the terms,
covenants, conditions and provisions on its part to be performed and observed,
Tenant shall and may peaceably and quietly have, hold and enjoy the Premises
during the term without any manner of hindrance or molestation from Landlord or
anyone claiming under Landlord, subject, however, to the terms of this Lease.

 

Section 14.3    Lease
Not to be Recorded; Notice of Lease. 
Tenant agrees that it will not record this Lease.  If the Term of this Lease, including
options, exceeds seven years, Landlord and Tenant agree that, on the request of
either, they will enter and record a notice of lease in form reasonably
acceptable to Landlord.

 

Section 14.4    Bind
and Inure; Limitation of Landlord’s Liability.  The obligations of this Lease shall run with the land, and this
Lease shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and assigns. 
No owner of the Premises shall be liable under this Lease except for
breaches of Landlord’s obligations occurring while owner of the Premises.  Landlord shall have the right to sell,
transfer or assign the Building and Lot, or any part thereof, and Landlord’s
interest in this Lease, in which event Landlord shall be automatically freed
and relieved from all applicable liability with respect to performance of any
covenant or obligation on the part of Landlord arising thereafter, provided the
transferee assumes in writing all of Landlord’s obligations first arising from
and after the date of the transfer.  The
obligations of Landlord shall be binding upon the assets of Landlord which
comprise the Building and Lot but not upon other assets of Landlord.  No individual partner, trustee, stockholder,
officer, director, employee or beneficiary of Landlord shall be personally
liable under this Lease and Tenant shall look solely to Landlord’s interest in
the Building and Lot in pursuit of its remedies upon an event of default
hereunder, and the general assets of Landlord and its partners, trustees,
stockholders, officers, employees or beneficiaries of Landlord shall not be
subject to levy, execution or other enforcement procedure for the satisfaction
of the remedies of Tenant.

 

Section 14.5    Acts
of God.  In any case where either
party hereto is required to do any act (except for the payment of money),
delays caused by or resulting from acts of God, war,

 

31

 

civil commotion, fire, flood or other casualty, labor difficulties,
shortages of labor, materials or equipment, government regulations, unusually
severe weather, or other causes beyond such party’s reasonable control shall
not be counted in determining the time during which work shall be completed, whether
such time be designated by a fixed date, a fixed time or a “reasonable time”,
and such time shall be deemed to be extended by the period of such delay.

 

Section 14.6    Landlord’s
Default.  Landlord shall not be
deemed to be in default in the performance of any of its obligations hereunder
unless it shall fail to perform such obligations and unless within thirty (30)
days after notice from Tenant to Landlord specifying such default Landlord has
not commenced diligently to correct the default so specified or has not
thereafter diligently pursued such correction to completion.  Except as otherwise specifically set forth
in this Lease, Tenant shall have no right, for any default by Landlord, to
offset or counterclaim against any rent due hereunder.

 

Section 14.7    Brokerage.  Landlord and Tenant each warrant and
represent to the other that it has had no dealings with any broker or agent in
connection with this Lease other than the Broker(s) set forth in Section 1
and covenants to defend (with counsel approved by the other), hold harmless and
indemnify the other from and against any and all cost, expense or liability for
any compensation, commissions and charges claimed by any broker or agent other
than the Broker(s) set forth in Section 1. 
Landlord shall pay the commission due to the Broker.

 

Section 14.8    Miscellaneous.  This Lease shall be governed by and
construed in accordance with the laws of the Commonwealth of
Massachusetts.  There are no prior oral
or written agreements between Landlord and Tenant affecting this Lease.

 

Section 14.9    Independent
Covenants; Waivers By Tenant.  Each
covenant, agreement, obligation or other provision of this Lease to be
performed by Tenant is a separate and independent covenant of Tenant, and not
dependent on any other provision of the Lease.

 

To the extent permitted by applicable law, Tenant waives the right to a
jury trial in any proceeding regarding this Lease and the tenancy created by
this Lease.  If Landlord commences any
summary proceeding for non-payment of Rent, Tenant will not interpose any
counterclaim of whatever nature in any such proceeding.  To the extent permitted by applicable law,
Tenant waives any and all rights of redemption granted by any present or future
laws.

 

Section 14.10  Rights
Reserved by Landlord; Tenant’s Right To Install An Exterior Building Sign.  Landlord reserves the following rights
exercisable without notice and without being deemed an eviction or disturbance
of Tenant’s use or possession of the Premises or giving rise to any claim for
set-off or abatement of Rent:  (i) to
change the name or street address of the Building, subject to the provisions of
the next paragraph; (ii) to install, modify and maintain all signs on the
Building; (iii) to change the arrangement of entrance, doors, corridors,
elevators and/or stairs in the Building, provided no such change shall
materially adversely affect access to the Premises; (iv) to modify, relocate
and to have access to any mail boxes located on or in the Building according to
the rules of the United

 

32

 

States Post Office; (v) to close the Building after normal business
hours, except that Tenant and its employees and invitees shall be entitled to
admission at all times under such Rules and Regulations as Landlord prescribes
for security purposes; (vi) to install, operate and maintain security systems
which monitor, by closed circuit television or otherwise, all persons entering
or leaving the Building; and (vii) to install, maintain or repair pipes, ducts,
conduits, wires or structural elements located in or through the Premises which
serve other parts or other tenant of the Building, provided such installations
do not interfere with Tenant’s use of the Premises in a materially adverse
manner.

 

Subject to parties’ mutual agreement as to the size, design, color,
quality and location thereof, Tenant shall have the right to install, at
Tenant’s sole cost and expense, a Tenant identification sign on the exterior of
the Building.  Tenant shall be
responsible to maintain, at Tenant’s sole cost and expense, such sign during
the Term.  Tenant shall remove, at
Tenant’s sole cost and expense, such sign upon the expiration or sooner
termination of the Term and shall perform, at Tenant’s sole cost and expense,
any repairs to the Building caused by the installation, maintenance and removal
of such sign.

 

Section 14.11.   Bond Financing.  Tenant acknowledges that Landlord may
finance the cost of certain construction or certain costs of ownership of the
Building and Lot, in part, by obtaining a loan or by issuing tax exempt bonds
(the “Bonds”) and, in order to evidence and secure its obligations relative to
either, may execute a loan and trust agreement, a mortgage and assignment of
leases relating to the Building and Lot, and various other documents relating
thereto (in the case of a loan financing, the “Loan Documents” and in the case
of a bond financing, the “Bond Documents”). 
Tenant agrees to execute such documents as are reasonably necessary for
such financing(s), including, without limitation, a commercially reasonable
subordination, non-disturbance and attornment agreement as described in Section
13.2 and a commercially reasonable estoppel certificate as described in Section
10.11, within ten (10) days of request.

 

Section 14.12   Non Discrimination; Job Creation.  With respect to its exercise of all uses,
rights and privileges granted herein, Tenant agrees that Tenant shall:  (a) not discriminate against any person,
employee or applicant for employment because of race, color, creed, national
origin, age, sex, sexual orientation, or disability in its use of the Premises,
including the hiring and discharging of employees, the provision or use of
services, and the selection of suppliers and contractors; (b) conspicuously post
notices to employees and prospective employees setting forth the Fair Employee
Practices Law of the Commonwealth of Massachusetts; and (c) comply with all
applicable federal and state laws, rules, regulations and orders and Landlord’s
rules and orders pertaining to Civil Rights and Equal Opportunity unless
otherwise exempt therefrom.

 

Tenant understands that Landlord’s agreement to enter into this Lease,
provide the Specialized TI Allowance and lend to Tenant the proceeds of the
Equipment Loan was predicated on Tenant’s agreement to use all diligent,
commercially reasonable efforts to create and retain jobs at the Premises.  Accordingly, Tenant shall create and fill
***Confidential Treatment Requested as to this Information*** new employment
positions to be staffed at its facility located at the Premises no later than
the date Tenant obtains a final certificate of occupancy for the Premises
(“Tenant’s Occupancy Date”) and shall use

 

33

 

all diligent, commercially reasonable efforts to maintain the same
during the Term.  Tenant shall also add
***Confidential Treatment Requested as to this Information*** other employment
positions to be staffed at its operations at the Premises, either by
transferring positions from other facilities to the Premises or by creating new
positions (or by a combination of the two), within one (1) year after Tenant’s
Occupancy Date, and Tenant shall use all diligent, commercially reasonable
efforts to maintain the same during the Term. 
Tenant shall deliver a certificate to Landlord, within fifteen (15) days
after Tenant’s Occupancy Date, certifying as to Tenant’s compliance with the
***Confidential Treatment Requested as to this Information*** employment
creation requirements of this paragraph and shall deliver a certificate to
Landlord, within fifteen (15) days after the first (1st) anniversary
of Tenant’s Occupancy Date, certifying as to Tenant’s compliance with the
employment creation and/or transfer requirements of this paragraph.

 

Notwithstanding any contrary provision of this Lease, the sole and
exclusive remedy of Landlord in the event of the breach of the foregoing
obligation by Tenant under the prior paragraph shall be that Tenant will
***Confidential Treatment Requested as to this Information***  In addition, in no event shall a breach of
Tenant’s obligations under this Section 14.12 constitute a default under the
Security Agreement or the Note (as such term is defined in Section 12), or any
of the Equipment Loan Documents (as such term is defined in Section 10.14) and
Landlord shall not have any claim or right of action against Tenant on account
of a breach of this Section 14.12.

 

Section 14.13   Access to the Premises; Tenant’s Right
To Use Conference Center.

 

Tenant’s employees shall have access to the Premises twenty-four (24)
hours a day subject to emergencies and Landlord’s Rules and Regulations.  Entry to the Building shall be by access key
card of which Landlord will provide a reasonable number for Tenant’s employees
as determined by Landlord, but any additional cards or replacements for lost
cards shall be subject to a direct fee as set forth in the Rules and
Regulations.

 

Subject to all rules, regulations and policies imposed by the
University of Massachusetts-Dartmouth (“UMASS Dartmouth”) and the availability
of the same, Tenant shall have the right to use, in common with other tenants
of the Building and other non-Building patrons of UMASS Dartmouth, the
conference center located on the first floor of the Building (the “Conference
Center”), it being understood that Tenant may not use such Conference Center or
any equipment therein at any time without first scheduling such use with UMASS
Dartmouth.  In accordance with Exhibit
I, Tenant shall not be obligated to pay a rental fee to UMASS Dartmouth for
the use of the Conference Center.

 

Section 14.14   Parking Rights.  Subject to the below provisions of this
Section 14.14, Tenant shall have a non-exclusive revocable license to use
Tenant’s Proportionate Fraction of the parking spaces at no additional charge
(except to the extent of Tenant’s share of the common area maintenance expenses
relating to such spaces) in common with other tenants of the Building, located
on the Lot on a “first-come, first served” basis.  In the event that Tenant shall not be able to use such percentage
of spaces on the Lot, Tenant shall have the right to make up such deficient
percentage by using the North Parking Areas to cover such deficiency, in common
with other tenants of the Park, on a “first-come, first served” basis.

 

34

 

Landlord shall have the right in its sole discretion to adopt and
subsequently amend rules and regulations regarding the use of the parking
spaces on the Lot and on the North Parking Areas.  Landlord also reserves the right to relocate, reconfigure,
restripe or reduce the parking spaces located on the Lot and the North Parking
Areas, subject to the terms and conditions set forth in this Lease, including
without limitation, Section 2.1. 
Additionally, Landlord reserves the right to designate certain parking
spaces or parking areas on the Lot or the North Parking Areas for parking by
particular tenants and if Landlord does so, Landlord shall similarly designate
certain parking spaces or parking areas for Tenant’s use; provided that
Landlord shall not provide unfavorable treatment to Tenant in designating such
parking spaces or parking areas.  As
used in this Lease, the term “North Parking Areas” shall mean these areas shown
on the plan attached hereto as Exhibit G as the “North Parking Areas.”

 

Section 14.15   Confidentiality.  Tenant agrees that, except as required by
law, it will not reveal, without the prior written consent of Landlord, the
terms and conditions of this Lease, including but not limited to amounts of
Rent, or the results of an audit of the Building’s common area maintenance
expenses performed by Tenant, to any other tenants of the Building or the Park
(or such other tenants’ assignees or subtenants) or to any parties with whom
Landlord is negotiating to lease space in the Building or the Park.

 

WITNESS the execution hereof under seal as of the day and year first
above written.

 

	
   

  	
  TENANT:

  
	
   

  	
   

  	
   

  
	
   

  	
  AVANT IMMUNOTHERAPEUTICS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Una S. Ryan

  	
   

  
	
   

  	
   

  	
  Name: Una S. Ryan

  
	
   

  	
   

  	
  Title: President and Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LANDLORD:

  
	
   

  	
   

  	
   

  
	
   

  	
  MASSACHUSETTS DEVELOPMENT FINANCE AGENCY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David T. Slatery

  	
   

  
	
   

  	
   

  	
  Name: David T. Slatery

  
	
   

  	
   

  	
  Title: President and C.E.O.

  
						

 

35

 

EXHIBIT A

 

Plan of Premises

 

36

 

EXHIBIT B

 

Description of Land

 

“New Lot 34 Area 3.83 Acres” as
shown on a plan entitled:  “Subdivision
Plan of Land of the Former Kerr Mill Site in Fall River, Massachusetts ... May
25, 2000 Rev. July 27, 2000 Rev Oct. 31, 2000 Freeman Engineering Company ...
Attleboro, Mass. Sheet 1 of 2” recorded in the Bristol County Registry of Deeds
in Book 120, Pages 52 and 53.

 

37

 

EXHIBIT C

 

Activity and Use Limitation

 

Activity & Use Limitation –
Disposal Site:  Kerr Mill Redevelopment
Project, DEP Release Tracking No. 4-282, a copy of which is located at
Landlord’s offices.

 

38

 

EXHIBIT D

 

RULES AND REGULATIONS

 

1.               The
sidewalks, entrances, driveways, passages, courts, elevators, vestibules,
stairways, corridors or halls shall not be obstructed or encumbered by any
tenant or used for any purpose other than for ingress to and egress from the
Premises and for delivery of merchandise and equipment in a prompt and
efficient manner using elevators and passageways designated for such delivery
by Landlord.  All hand trucks used by
tenants for deliveries in the Building shall be equipped with rubber tires and
sideguards and the tenants shall be solely responsible for any damage caused by
them or their agents during any deliveries to the Premises.

 

2.               The
water and wash closets and plumbing fixtures shall not be used for any purposes
other than those for which they were designed or constructed and no sweepings,
rubbish, rags, acids or other substances shall be deposited therein, and the
expense of any breakage, stoppage, or damage resulting from the violation of
this rule shall be borne by the tenant who, or whose clerks, agents, employees
or visitors, shall have caused it.

 

3.               No
carpet, rug or other section shall be hung or shaken out of any window of the
building; and no tenant shall sweep or throw or permit to be swept or thrown
from the Premises any dirt or other substances into any of the corridors or
halls, elevators, or out of the doors or windows or stairways of the Building,
and Tenant shall not use, keep or permit to be used or kept any foul or noxious
gas or substance in the Premises, or permit or suffer the Premises to be
occupied or used in a manner offensive or objectionable to Landlord or other
occupants of the Building by reason of noise, odors, and/or vibrations, or
interfere in any way with other tenants or those having business therein, nor
shall any bicycles, vehicles or animals of any kind be kept in or about the
Building.

 

4.               No
curtains, blinds, shades, or screens shall be attached to or hung in, or used
in connection with, any window or door of the Premises without the prior
consent of Landlord.  Such window
treatments shall be of a quality, type, design and color, and attached in a
manner approved by Landlord.

 

5.               No
sign, advertisement, notice or other lettering shall be exhibited, inscribed,
painted or affixed by any tenant on any part of the outside of the Premises or
the Building or on the inside of the Premises if the same is visible from the
outside of the Premises without the prior written consent of Landlord, except
that the name of the Tenant may appear on the entrance door of the Premises and
on the lobby and main Building directories, to the extent the same exist.  In the event of the violation of the
foregoing by any tenant, Landlord may remove same without any liability, and
may charge the expense of removal to any tenants violating this rule.  Interior signs on doors and directory tablet
shall be inscribed, painted or affixed for each tenant by Landlord at the
expense of Landlord, and shall be of a size, color and style acceptable to
Landlord.

 

39

 

6.               No
tenant shall mark, paint, drill into, or in any way deface any part of the
Premises or the Building of which they form a part.  No boring, cutting or stringing of wires shall be permitted,
except with the prior written consent of Landlord, and as Landlord may
direct.  No tenant shall secure any
floor covering with cement or other similar adhesive material.

 

7.               Except
as may be approved in advance by Landlord, which approval shall not be
unreasonably withheld or delayed, no additional locks or bolts of any kind
shall be placed upon any of the doors or windows by any tenant, nor shall any
changes be made in existing locks or mechanism thereof.  Landlord hereby approves the installation by
Tenant of a security card reader system and a locking mechanism for the
Premises.  Each tenant must, upon the
termination of his Tenancy, restore to Landlord all keys of stores, offices and
toilet rooms, either furnished to, or otherwise procured by, such tenant, and
in the event of the loss of any keys, so furnished, such tenant shall pay to
Landlord the cost thereof.

 

8.               Freight,
furniture, business equipment, merchandise and bulky matter of any description
shall be delivered to and removed from the Premises only during hours and in a
manner approved by Landlord.  Landlord
reserves the right to inspect all freight to be brought into the Building and
to exclude from the Building all freight which violates any of these rules and
regulations or the Lease of which these rules and regulations are a part.

 

9.               Canvassing,
soliciting and peddling in the Building is prohibited and each tenant shall
cooperate to prevent the same.

 

10.         Landlord
reserves the right to exclude from the Building between the hours of 6 p.m. and
8 a.m. and at all hours on Sundays, and legal holidays all persons who do not
present a pass to the Building signed by Landlord.  Landlord will furnish passes to persons for whom any tenant
requires same in writing.  Each tenant
shall be responsible for all persons for whom he requests such pass and shall
be liable to Landlord for all acts of such persons.

 

11.         Landlord
shall have the right to prohibit any advertising by any tenant which, in
Landlord’s opinion, tends to impair the reputation of the Building or its
desirability as a Building for offices, and upon written notice from Landlord,
such tenant shall refrain from or discontinue such advertising.

 

12.         Except
in compliance with the provisions of Section 10.3 in connection with the same,
Tenant shall not bring or permit to be brought or kept in or on the Premises,
any inflammable, combustible or explosive fluid, material, chemical or
substance, or cause or permit any odors of cooking or other processes, or any
unusual or other objectionable odors to permeate in or emanate from the
Premises.

 

13.         If
the Building contains central air conditioning and ventilation Tenant agrees to
keep all windows closed at all times and to abide by all rules and regulations
issued by Landlord with respect to such services.

 

40

 

14.         If
the Premises demised to any tenant become infested with vermin, such tenant, at
its sole cost and expense, shall cause its Premises to be exterminated from
time to time, to the satisfaction of Landlord, and shall employ an exterminator
approved by Landlord.

 

15.         Smoking
in the Building is prohibited.  Tenant
and the employees of Tenant shall not violate any law regulating tobacco
smoking in the Building, including the Premises and the common areas,
(including but not limited to elevators, stairwells, lobbies and restrooms) of
the Building.  In the event Tenant or
its employees violate any such law, Tenant shall be responsible for payment of
all fines and penalties assessed against Landlord.

 

41

 

EXHIBIT E

 

List of Approved Specialized Tenant
Improvements

 

[To Be Attached After Lease Execution Per
Section 10.3]

 

42

 

EXHIBIT F

 

[Attach Space Plan]

 

43

 

EXHIBIT G

 

Attach Plan Showing North Parking Areas

 

44

 

EXHIBIT H

 

Exclusions from Common Area Maintenance Expenses

 

Notwithstanding anything herein
to the contrary, the following shall not be included in the calculation of
common area maintenance expenses:

 

1.             wages, salaries or
fringe benefits paid for any employee above the grade of Building manager or
the wages or indirect compensation of any employee to the extent such employee
devotes his or her time to property other than the Building or the Lot;

 

2.             Costs of repairs or
other work necessitated by fire, windstorm, casualty or other insurable
occurrence, including costs subject to Landlord’s deductibles, and costs of
repairs or other work necessitated by the exercise of the power of eminent
domain;

 

3.             The cost of capital
repairs, replacements or improvements except that the annual amortization
(determined in accordance with GAAP principles) of the following capital
expenditures (together with Landlord’s annual financing charges in connection
therewith) may be included by Landlord in common area maintenance
expenses:  (i) reasonable replacements
and repairs of worn out or obsolete components of the Building or its systems
or mechanical equipment, (ii) capital expenditures incurred to reduce other
common area maintenance expenses provided that the annual amortization that can
be included in common area maintenance expenses shall not exceed the reasonably
anticipated amount of average annual savings created thereby; and (iii) capital
expenditures incurred in order to comply with a law, ordinance, regulation or
ruling first enacted after the date of this lease (collectively, “Pass-Through
Capital Expenditures”);

 

4.             Payments to any subsidiary
or affiliate of Lessor substantially in excess of the amount that would be paid
for similar goods or services on an arms-length basis between unrelated third
parties;

 

5.             Management fees
substantially in excess of market management fees charged for comparable
buildings in the rental market in which the Premises is located;

 

6.             Any costs of services
or utilities used or consumed in premises leased or leasable to lessees or
occupants if Tenant’s use or consumption of the applicable utility or service
is separately metered or submetered;

 

7.             Any increases in
premiums for any insurance maintained by Landlord resulting from the
extra-hazardous activities of parties other than Tenant, but only to the extent
the same are separately allocated by the insurer;

 

8.             Leasing commissions,
attorneys’ fees, costs, disbursements and other expenses incurred by Landlord
or its agents in connection with negotiations for leases or other occupancy
agreements, and similar costs incurred in connection with disputes with and/or
enforcement of leases or other occupancy agreements;

 

45

 

9.             “Tenant allowances,”
“tenant concessions,” workletters, and other costs or expenses (including
permit, license and inspection fees) incurred in completing, fixturing,
furnishing, renovating or otherwise improving, decorating or redecorating space
for lessees or other occupants, or vacant, leasable space, including space
planning/interior architecture fees for same;

 

10.           Payments of principal,
finance charges, or interest on debt or amortization on any mortgage, deed of
trust or other debt financing or refinancing, and rental payments (or increases
in same) under any ground or underlying lease or leases;

 

11.           Any bad debt loss, rent
loss or other reserve for bad debt or rent loss;

 

12.           Interest, fines or
penalties for any late payments by Landlord not due to the act or neglect of
Tenant or its agents, contractors or employees;

 

13.           Legal fees, late
charges and penalties incurred in connection with Landlord’s violation of law;

 

14.           Costs resulting from
the gross negligence or willful misconduct of Landlord, its employees, agents
and/or contractors and not reimbursed by insurance;

 

15.           Advertising and
promotional expenses and costs associated with maintaining Landlord’s corporate
(or other entity) existence and other overhead and administrative costs of
Landlord not directly incurred in the operation and maintenance of the Building
or the common areas;

 

16.           Costs incurred in
connection with the making of repairs or replacements which are the obligation
of any other tenant;

 

17.           Political contributions
or contributions to charitable organizations;

 

18.           Costs or fees relating
to the defense of Landlord’s title to or interest in the Building, or the
appurtenant land, or any part thereof;

 

19.           Depreciation or
amortization of the Building or the appurtenant land, or its components or the
common areas, except for the amortization of capital improvements, repairs or
replacements permitted to be included in common area maintenance expenses under
this Lease;

 

20.           Any costs in connection
with an expansion of the rentable area of the Building, or any costs incurred
in connection with any additions to the common areas, including the purchase of
additional land or other development rights;

 

21.           The cost of any item or
service for which Tenant separately reimburses Landlord or pays to third
parties, or that Landlord provides selectively to one or more, but not all
tenants of the Building, other than Tenant, whether or not Landlord is
reimbursed by such other tenant(s), including, without limitation, the actual
cost of any special electrical, heating, ventilation or air conditioning
required by any lessee that exceeds the standard for the Building;

 

46

 

22.           Any personal property
taxes of Landlord for equipment or items not used directly in the operation or
maintenance of the Building, the Lot or the common areas.

 

23.           Costs of correcting any
violation of any applicable building, health or fire codes or other applicable
law relating to the Building, which violation was in existence prior to the
date of this Lease (an “Existing Violation”), except that if a particular
Existing Violation does not either (i) cost in excess of ***Confidential
Treatment Requested as to this Information*** to remedy or (ii) relate to
“Existing Hazardous Substances” (as such term is defined below), the cost of
remedying any such particular Existing Violation may be included by Landlord in
common area maintenance expenses.

 

24.           Costs to correct a
defect in the original construction of the Building or the common systems
serving the Building, the Lot or the Park (including without limitation the
sewer pumping station, the vapor barrier and the sub-slab venting system in the
Building) that exceed, with respect to a particular defect, more than
***Confidential Treatment Requested as to this Information*** to remedy.

 

25.           Reserves, except that
Landlord may include reserves in common area maintenance expenses that do not
exceed 5% of the prior year’s common area maintenance expenses for the
Building, except that reserves for any capital expenditures that are not “Pass
– Through Capital Expenditures” (as such term is defined in Item No. 3 above)
shall not be included in common area maintenance expense reserves.

 

26.           Costs expended to
remediate any hazardous substances located on, in or under the Building or the
Lot, whether known or unknown, to the extent the same exist as of the date of
this Lease (“Existing Hazardous Substances”), or which hazardous substances
remediation is required as a result of the acts, omissions or uses of Landlord,
its agents, employees, contractors, invitees, or tenants, and except to the
extent the costs of such remediation constitute capital expenditures.

 

47

 

EXHIBIT I

 

[Attach Letter from UMASS Dartmouth Regarding
Non-Payment by

Tenant of Conference Center Rental Fee]

 

48

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