Document:

Exhibit
10.7

 

L E A S E

 

THIS LEASE is
dated as of February 13,2004 between the Landlord and the Tenant named below,
and is of space in the Building described below.

 

ARTICLE 1

BASIC
DATA; DEFINITIONS

 

1.1                               Basic Data.  Each
reference in this Lease to any of
the following terms shall be construed to incorporate the data for that term set forth in this
Section:

 

Landlord:  Quincy Hayward Street, LLC, a Massachusetts limited liability
company

 

Landlord’s
Address:  2181 Washington Street, Suite 101, Boston, Massachusetts
02119.

 

Tenant:  Imo Industries, Inc., a Delaware
corporation

 

Tenant’s
Address:  14 Hayward Street, Quincy,
Massachusetts 02171.

 

Building:  That certain building commonly known
and numbered as 14 Hayward
Street, Quincy, Massachusetts.

 

Property:  The land located in Quincy, Massachusetts, together with the Building and other improvements thereon, all as
more particularly described on Exhibit A attached hereto.

 

Premises:  The entire second (2nd) floor of the
Building, as shown on the location
plan Exhibit B attached hereto.

 

Basic Rent:
 $150,000 annually, payable in equal monthly installments of $12,50.00.

 

Security Deposit:  $12,500.00, which shall be
paid out of the Closing (as defined herein).

 

Commencement
Date:  The date of the Closing.

 

Term:  One
year from the Commencement Date.

 

Extension
Option:  Tenant and Landlord shall have the right to extend the Term of this
Lease upon mutually acceptable
terms and conditions Either
party shall have the right to terminate any such Extension Option upon six (6) months’
written notice to the other.

 

Tenant’s
Pro Rata Share:  Seventy-Five Percent (75%).

 

Insurance:
 Landlord shall maintain casualty
insurance for the full replacement
value of the Building. Tenant shall pay Landlord its Pro Rata Share
of the insurance costs applicable to the Term.

 

 

Permitted
Use:  Tenant shall use the Premises for office and related uses.

 

Parking:
 Tenant shall have the right to use sixty-five (65) designated
parking spaces at the Property, as more
particularly shown an the Parking Plan attached hereto as Exhibit C.

 

1.2                               Definitions.
 When used in this Lease, the capitalized terms set forth below shall have the meanings set forth below.

 

Additional
Rent  All charges and sums payable by Tenant as set forth in this
Lease, other than and in addition
to Basic Rent.

 

Closing:
 The date on which Tenant, as Seller,
and Landlord, as Buyer, consummate the purchase
and sale transaction of the Property,
pursuant to that certain
Purchase and Sale Agreement, dated January 9, 2004.

 

Environmental
Laws:  Any federal, state and/or local statute,
ordinance, bylaw, code, rule and/or
regulation now or hereafter
enacted, pertaining to any aspect of the environment or human health, including, without limitation, Chapter 21C, Chapter 2 1D, and Chapter 21 E of the General Laws of Massachusetts and the regulations promulgated by the Massachusetts Department of Environmental Protection, the Comprehensive Environmental
Response, Compensation and Liability Act of 1980,42 U.S.C. Section  9601 et seq., the Resource Conservation
and Recovery Act of 1976,42 U.S.C. Section  6901 et
seq., the Toxic Substances Control Act, IS U.S.C. Section 2061 et
seq., the Federal Clean Water Act, 33 U.S.C. Section  1251, and
the Federal Clean Air Act, 42 U.S.C. Section 7401 et seq.

 

First
Floor Premises:  Shall mean that portion of the Building located
on the first (1st) floor which
Landlord may rent out to a tenant
during the Term of this Lease or any extension hereof.

 

Hazardous
Materials:  Shall
mean each and every element, compound, chemical mixture, contaminant, pollutant, material, waste or other substance which is defined, determined or identified as hazardous or toxic under any
Environmental Law, including, without
limitation, any “oil,” “hazardous
material,” “hazardous waste,” “hazardous
substance” or “chemical
substance or mixture”, as the foregoing terms (in quotations) are defined in any
Environmental Laws.

 

Operating
Expenses:  Shall
mean any costs and expenses assessed to
Landlord for the following services and utilities related to Building and the Property: (i) building
maintenance; (ii) general pest control; (iii) trash compactor; (iv)
elevator maintenance; (v) snow plowing;
(vi) electricity; (vii) gas; and (viii) water and sewer.

 

1.3
                            Enumeration
of Exhibits.  The following Exhibits are a part of this Lease, are incorporated herein by reference attached hereto, and are to be treated as apart of this
Lease for all purposes.
Undertakings contained in such Exhibits
are agreements on the

 

 

part of Landlord and Tenant, as the case may be, to perform the obligations stated therein.

 

	
  Exhibit A — Description of Property

  
	
  Exhibit B — Location Plan of the Premises

  
	
  Exhibit C — Parking Plan

  

 

ARTICLE 2

PREMISES
AND APPURTENANT RIGHTS

 

2.1                               Lease of Premises.
 Landlord hereby leases to Tenant
and Tenant hereby leases from Landlord
the Premises for the Term
and upon the terms and
conditions hereinafter set forth Tenant
shall have, as appurtenant to the
Premises, the non-exclusive right to use, and permit its invitees to use in common with others
entitled thereto, the easements,
rights of way or other rights, if any, which are appurtenant to
the Premises pursuant to any
recorded documents evidencing such easements
or rights, as well as the right to use all entrances, common areas of the Building and the Property, the outdoor trash compactor, the truck dock, and roof-top antennas and satellite
dish, which are all located on
or adjacent to the Building.

 

ARTICLE 3

RENT

 

3.1                               Basic
Rent.  Tenant agrees to pay the Basic Rent to Landlord commencing on the Commencement Date, without offset, abatement (except as provided
in Articles 11 and 12), deduction or demand. Basic Rent for any partial month shall be pro-rated on a daily basis, and
if the first day on which Tenant must pay Basic Rent shaft
be other than the first day of a
calendar month, the first
payment which Tenant shall make to Landlord shall be equal
to a proportionate part of the
monthly installment of Basic Rent for the partial month from the first day on which Tenant must pay Basic Rent to the last day of the month in which such day occurs, plus the
installment of Basic Rent for the succeeding calendar month.

 

3.2                               Additional Rent.  Commencing on the Commencement Date,
Tenant shall pay monthly the following amounts to Landlord as “Additional Rent”:

 

(a)                                  Operating
Expenses. Tenant’s Pro Rata Share

 

(b)                                 Real
Estate Taxes. Tenant’s Pro Rata Share

 

(c)                                  HVAC Operating Expenses. Tenant shall pay one hundred percent (100%) of the operational and
maintenance costs associated with the
HVAC system that services
the Premises.

 

3.3                               Security Deposit.  The Security Deposit shall be as set forth in Section 1.1. hereof. The Security Deposit shall be
applied to the last month’s
rent, if not previously applied by
Landlord to correct a Default of
Tenant (as defined herein).

 

 

ARTICLE
4

COMMENCEMENT
AND CONDITION

 

4.1                               Commencement Date:  The “Commencement
Date” shall be as set forth in Section 1.1 hereof.

 

ARTICLE 5

USE
OF PREMISES

 

5.1                               Permitted
Use.

 

(a).                               Tenant
agrees that the Premises shall be used
and occupied by Tenant for the Permitted Use.

 

5.2                               Hazardous
Materials.

 

(a)                                  Tenant
may use chemicals of the kind
and in amounts and in the manner customarily used to
conduct its business at the Premises and to maintain and operate the business machines
located in the Premises. Tenant shall not release or dispose of any other
Hazardous Materials on or about the
Premises.

 

(b)                                 Tenant
shall indemnify,, defend and hold Landlord harmless from and
against, any liabilities, losses claims, damages, interest, penalties, fines, attorneys’ fees,
experts’ fees, court costs, remediation
costs, and other expenses which result
from the use, storage,
handling, treatment, transportation, release, threat of release or disposal
of Hazardous Materials in or about the Premises by Tenant or Tenant’s agents, employees, contractors or invitees during the Term. The provisions of this
paragraph (b) shall survive the expiration or earlier termination of this Lease.

 

(c)                                  Landlord shall indemnify, defend and hold
Tenant harmless from and against any liabilities, losses claims, damages, interest,
penalties, fines, attorneys’ fees, experts’ fees, court costs, remediation
costs, which result from the use, storage, handling, treatment,
transportation, release, threat of
release or disposal of Hazardous Materials in or about the Property and the Premises, or the violation of any Environmental Laws occurring after the Commencement Date if not caused by Tenant. The provisions
of this paragraph (c) shaft survive
the expiration or earlier termination
of this Lease.

 

ARTICLE
6

ALTERATIONS

 

6.1                               Installations and
Alterations by Tenant.  Tenant
shall make no alterations, additions or
improvements in or to the Premises without Landlord’s prior written consent, which consent shall not be unreasonably withheld,
conditioned or delayed.

 

 

ARTICLE 7

ASSIGNMENT AND SUBLETTING

 

7.1                               Consent  Tenant shall not assign this Lease or sublet the Premises, in
whole or in part, without the prior written consent of Landlord, which
consent shall not be unreasonably
withheld, conditioned or delayed.

 

ARTICLE
8

VACATING
PREMISES

 

8.1                               Tenant’s Vacating the
Premises.  Tenant may vacate all or a portion of the Premises at any time during the Term
of this Lease.

 

(a)                                  In the event that Tenant elects to vacate all of the Premises, Tenant shall continue
to be responsible for all Basic Rent due under this
Lease for the entire Term, provided, however, that Tenant shall
not be responsible for any
Additional Rent due hereunder
after Tenant notifies Landlord in writing
that it has vacated the Premises.

 

(b)                                 In the event that Tenant elects to
vacate a portion of the Premises,
Tenant shall continue to be responsible
for all Basic Rent due under this
Lease and shall be responsible
for the payment of Additional Rent
as the same shall be fairly
adjusted to reflect the vacation.

 

ARTICLE
9

RESPONSIBILITY
FOR REPAIRS AND SURRENDER

 

9.1                               Landlord Repairs.
 Landlord agrees to keep in good order, condition and repair the roof and structural components of the Building and
all plumbing, mechanical and
electrical systems in the Building, except that Landlord shaft in no
event be responsible to Tenant for
any condition caused by the negligence or misconduct of Tenant.

 

9.2                               Tenant Repairs.  Tenant agrees to maintain and repair
(without the obligation, to replace) the
internal portion of the
Premises, including, without limitation, the HVAC system serving the Premises, regardless of whether such system is within the internal portion of
the Premises, which Tenant shall keep and maintain in its condition as of the Commencement Date, ordinary wear and tear excepted.

 

9.3                               Surrender of Premises.
 Upon the expiration or earlier
termination of the Term of this Lease, Tenant shall peaceably
quit and surrender to Landlord
the Premises in neat and clean condition
and in good order, condition and
repair, ordinary wear and tear and damage
by fire or other casualty excepted,
provided, however, that in no event
shall Tenant be responsible for surrendering the Premises in a condition better than that which exists at the Commencement Date, ordinary
wear and tear excepted. Tenant shall remove
all of its personal property and
furnishings from the Premises
and shall repair any material damage
caused by such removal.

 

 

ARTICLE
10

INDEMNITY AND PUBLIC LIABILITY INSURANCE

 

10.1                        Tenant’s Indemnity.  Except to
the extent arising from the
gross negligence or. willful misconduct of Landlord or its agents, invitees, or employees, Tenant agrees to
indemnify and save harmless Landlord and
Landlord’s partners, members, shareholders, officers, directors,
managers, employees, agents and contractors from and against all claims, losses, cost,
damages, liability or expenses of whatever
nature arising from any accident, injury or damage whatsoever to any
person, or to the property of any
person, occurring in or about the Premises; or the use or occupancy of the Premises or of any business conducted therein or
any thing or work whatsoever
done or any condition created
(other than by Landlord or Landlord’s
agents or invitees ) in or about the Premises, and, in
any case, occurring after the Commencement
Date until the expiration of the Term of this Lease and thereafter
so long as Tenant is in occupancy of any part of the Premises. The provisions of this Section 10.1 shall survive the expiration or earlier
termination of this Lease.

 

10.2                        Landlord’s Indemnity.  Except to the extent arising from
the gross negligence or willful
misconduct of Tenant or its agents or employees, Landlord
agrees to indemnify and save harmless Tenant and Tenant’s partners, members, shareholders, officers, directors, managers, employees, agents and contractors
from and against all claims,
losses, cost, damages, liability or
expenses of whatever nature arising
from any accident, injury or damage whatsoever to any person, or to the property of any
person, occurring in or about the Property; or the use or occupancy of the Property or of any
business conducted therein or any thing
or work whatsoever done or any condition created (other than by Tenant) in or about the Property, and, in any case, occurring after the Commencement Date until the expiration of
the Term of this Lease and
thereafter so long as Tenant is in occupancy of any part of the Premises. The provisions of this Section 10.2 shall survive the expiration or earlier termination of this
Lease.

 

10.3                        Landlord’s Insurance.  Landlord
agrees to maintain in full force
and effect, dining the Term of this Lease, casualty insurance as set forth in Section 1.1.

 

10.4                        Waiver of Subrogation.  The parties hereto shall each procure an appropriate clause in, or endorsement on, any property insurance policy on the Premises or any personal property, fixtures or equipment located thereon or therein, pursuant to which the insurer waives subrogation or consents
to a waiver of right of recovery in favor of either party, its
respective agents or employees. Having obtained
such clauses and/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 resulting from fire or other perils covered by such property
insurance regardless of the cause or origin of such loss or damage,
including, but not limited to, the negligence of such other party or its agents or
employees.

 

ARTICLE 11

FIRE. CASUALTY

 

11.1                        Right of
Termination.  If the
Building is damaged by fire or
casualty, and such damage
materially interferes with Tenant’s
use of the Premises, as
determined by Tenant in its reasonable discretion, Tenant shall have the right to terminate this Lease, unless Landlord repairs

 

 

such damage within thirty (30)
days of Tenant’s notice thereof.
In the event that Landlord does not so repair the damage, Tenant shall have the right
to terminate this Lease by giving notice of its election to do so to Landlord, whereupon this
Lease shall terminate as of the date of
such notice with the same force and effect as if such date were the date originally established as the
expiration date hereof. If this
Lease is terminated pursuant to this Section 11.1, Tenant shall be
entitled to a refund or
abatement of any Basic Rent and/or
Additional Rent that Tenant may have paid to Landlord for any
period beyond the date of such termination.

 

11.2                        Abatement of Rent.  In the event that Tenant does not elect to terminate this Lease pursuant to Section 11.1 above, then
Basic Rent and Additional Rent payable
by Tenant shall abate proportionately
for the period during which,
by reason of such damage, there is material
interference with Tenant’s use of the Premises.

 

ARTICLE
12

EMINENT DOMAIN

 

12.1                        Right of Termination.  If any
part of the Building is taken by any exercise of the right of eminent domain, and
such taking materially interferes
with Tenant’s use of or access to the Premises as
determined by Tenant in its sole discretion, Tenant shall have the right to terminate this Lease by
giving notice of its
election to do so to Landlord,
whereupon this Lease shall terminate
as of the date of such n notice
with the same force and effect
as if such date were the date
originally established as the expiration date hereof. If this Lease is terminated pursuant to this Section 12.1, Tenant shall be entitled to a
refund or abatement of any
Basic Rent and/or Additional Rent that
Tenant may have paid to Landlord for any
period beyond the date of such
termination.

 

12.2                        Abatement of Rent.  If
the Premises shall be affected
by any exercise of the power of eminent domain, Basic Rent and Additional Rent
payable by Tenant shall be justly and equitably abated and reduced according to the nature and extent of the loss of use
thereof suffered by Tenant.

 

12.3                        Condemnation Award.  Landlord shall have and hereby reserves and excepts, and Tenant hereby grants and assigns to Landlord, all rights to recover for damages to the Premises and the leasehold interest hereby
created, and to compensation accrued
or hereafter to accrue by reason of any taking, by exercise of
the right of eminent
domain, and by way of confirming
the foregoing. Tenant hereby grants and assigns, and covenants with Landlord to grant and assign to Landlord, all rights to such damages or compensation. Notwithstanding the
foregoing, Tenant shall retain
the right to any portion of such
damages or compensation relating to any
Tenant improvements, equipment and
furniture, as well as Tenant’s moving
expenses.

 

ARTICLE
13

RIGHTS
OF MORTGAGEES: TRANSFER OF TITLE

 

13.1                        Lease to be Subordinate.
 Subject to the provisions of this
Section 13.1, this Lease shall be subordinate to any mortgage, deed
of trust or ground lease or similar
encumbrance (collectively, a “Mortgage”, and the holder thereof from time
to time the “Holder”) from time to time
encumbering the Premises, whether executed and delivered prior to or subsequent to
the date of this Lease, unless
the Holder shall elect otherwise. If this
Lease is subordinate to any

 

 

Mortgage and the Holder or any other party shall
succeed to the interest of Landlord
pursuant to the Mortgage (such Holder
or other party, a “Successor”),
at the election of the Successor, Tenant shall attorn to the Successor and this Lease shall
continue in full force and effect between the Successor and Tenant. Tenant agrees to execute such instruments of subordination or attornment
in confirmation of the foregoing agreement as the Holder or Successor reasonably may request.

 

13.2                        Non-Disturbance Agreement.  Notwithstanding the foregoing, Tenant shall
not be required to subordinate this Lease to a Mortgage or attorn to any Holder or Successor, nor shall the subordination provided herein be self-operative unless the Holder shall enter into an
agreement with Tenant to the effect that in the event that the Holder or any other party shall succeed
to the interest of Landlord hereunder pursuant to such Mortgage, Tenant’s right to possession of the Premises shall not be disturbed and Tenant’s other
rights hereunder shall not be adversely affected by any foreclosure of such
Mortgage provided that Tenant is not then in default hereunder. Such agreement shall be in a written instrument in. form
satisfactory to Tenant in its reasonable
discretion. Landlord shall use
commercially reasonable efforts to
provide to Tenant such agreement from any present or future Holder.

 

ARTICLE 14

DEFAULT;
REMEDIES

 

14.1                        Tenant’s Default.  The
following events shall constitute a “Default of Tenant”

 

(a)                                  Tenant shall fail to pay the Basic Rent or Additional Rent hereunder when due and such failure
shall continue for ten (10) days
after written notice to Tenant from Landlord; or

 

(b)                                  Tenant
shall neglect or fail to perform
or observe any other covenant herein contained on Tenant’s part to be performed or observed and Tenant shall fail to remedy the same within thirty (30) days after
notice to Tenant specifying such
neglect or failure, or if such failure
is of such a nature that Tenant cannot reasonably remedy the same within such thirty (30) day period, Tenant shall fail to
commence promptly (and in any event within such thirty
(30) day period) to remedy the same and to prosecute such remedy to completion with diligence and
continuity; admit in writing its inability to pay its debts generally as they
become due; or

 

14.2                        Landlord’s Remedies.  If
a Default of Tenant exists, in
addition to any other remedies
available to Landlord at law or in equity,
Landlord shall have the following
rights and remedies:

 

(a)                                  Upon
the occurrence of a Default of Tenant,
Landlord may terminate this Lease by
delivery of written notice to Tenant, specifying a date not less than ten (10) days after the giving of such notice on which this Lease shall terminate
and this Lease shall come to an end
on the date specified therein as
fully and completely as if such date were
the date herein originally fixed
for the expiration of the Term of this Lease, and Tenant will then quit and surrender
the Premises to Landlord, but Tenant
shall remain liable as hereinafter provided.

 

(b)                                 If this Lease Shall have been
terminated as provided in this Article 14,
then Landlord may re-enter the Premises, either by summary proceedings,
ejectment or

 

 

otherwise, and remove and dispossess Tenant and all other persons and any and all property from the same, as if • this Lease
had not been made.

 

(c)                                   If this Lease shall have been terminated
as provided in this Article 14, then
Tenant shall be obligated to pay all Basic Rent for the remainder of the Term, provided, however, that
if Landlord relets the Premises, then Tenant’s obligation shall terminate as
of the date of such reletting and
in proportion to the portion of the Premises so relet.

 

14.3                        Reletting.  Landlord
shall use its best efforts
to relet the Premises or any part thereof for such period or periods (which may extend beyond the Term of this Lease) and at such rent or rents and upon such other terms and conditions as Landlord may deem advisable. All reasonable costs of reletting shall be charged to Tenant.

 

14.4                        Remedies Cumulative.  The specified remedies to which Landlord may resort hereunder are not intended to be
exclusive of any remedies or means
of redress to which Landlord may at any time be entitled lawfully, and Landlord may
invoke any remedy (including the
remedy of specific
performance) allowed at law or in equity
as if specific remedies were not herein provided for.

 

14.5                        Waiver.
 No
waiver of any Default of Tenant
hereunder shall be implied from any acceptance by Landlord of any Basic Rent, Additional Rent or other charges due hereunder or any
omission by Landlord to take any
action on account of such Default, and no express
waiver shall affect airy Default
other than as specified in said waiver. Failure on the part
of Landlord or Tenant to complain of any action or non-action on the part of the
other, no matter how long the
same may continue, shall never
be a waiver by Tenant or Landlord, respectively, of any of the other’s rights hereunder. Further, no waiver at any time of any of the
provisions hereof by Landlord or
Tenant shall be construed as a
waiver of any of the other
provisions hereof, and a waiver
at any time of any of the provisions hereof shall not be construed as a
waiver at any subsequent time of
the same provisions. The consent or approval of Landlord or Tenant to or of any action by the other requiring such consent or approval shall
not be construed to waive or render unnecessary Landlord’s or Tenant’s consent or approval to
or of any subsequent similar act by
the other.

 

14.6                        Landlord’s Default.  Landlord
shall in no event be in default under this Lease unless Landlord shall neglect or fail to perforn any of its obligations hereunder and shall
fail to remedy the same within thirty (30) days after receipt of written notice
to Landlord specifying such neglect or
failure, or if such failure is of such a nature that Landlord
cannot reasonably remedy the same within such thirty (30) day
period, Landlord shall fail to commence promptly (and in any
event within such thirty (30) day
period) to remedy the same and
thereafter to prosecute such
remedy to completion with
diligence and continuity. Notwithstanding the foregoing, in the case of
electrical or telecommunications
interruptions caused by Landlord’s
Construction undertaken pursuant to Section 15.4 hereof; Landlord
shall be in default under this Lease unless Landlord remedies the same
within five (5) days after receipt of notice thereof
from Tenant.

 

14.7                        Attorneys’ Fees.  Reasonable
attorneys’ fees and expenses incurred by or on behalf of Landlord
or Tenant in successfully enforcing its rights under this Lease shall be paid by the other party.

 

 

ARTICLE
15

MISCELLANEOUS
PROVISIONS

 

15.1
                     Rights
of Access.  Tenant, its agents,
contractors and employees shall have
access to the Building, including access to and use of the Building elevator,
twenty-four (24) hours per day, each
day of the week. Landlord, its agents, contractors
and employees shall have the right to enter the Premises upon
reasonable prior notice during Tenant’s normal business hours, provided
that a representative of Tenant is present
(except in the event of an emergency,
when no notice need be given
and no representative of Tenant shall be necessary), for the purposes of inspecting the Premises, doing maintenance or making repairs or
otherwise exercising its rights or
fulfilling its obligations under
this Lease, and Landlord also shall have
the right to make access available
upon reasonable prior notice during Tenant’s normal business hours to prospective or existing mortgagees, purchasers or tenants of any part of the
Premises.

 

15.2                        Covenant of Quiet Enjoyment.  Subject
to the terms and conditions of this
Lease, Tenant shall lawfully, peaceably
and quietly enjoy the Premises
during the term hereof, without hindrance or ejection by any persons lawfully claiming under Landlord to have title to
the Premises superior to Tenant.

 

15.3                        Security.
 The Building is currently serviced by a security system, which provides security protection for the Premises and the first floor of the Building. Within thirty (30) days hereof, Landlord shall
cause said security
system to be re-configured so that the alarm coverage is segregated
between the Premises and the first floor of the Building. Tenant shall reimburse Landlord its Pro
Rata Share of such re-configuration
cost, but in no event shall Tenant be
obligated to reimburse Landlord for costs incurred by Landlord, if any, associated with any
upgrades or additional
improvements to said security
system. Landlord shall pay the cost of
the security coverage for the
Building and Tenant shall reimburse Landlord monthly for costs associated
with security coverage for the Premises.

 

15.4                        Landlord
Construction.  Landlord shall not undertake any construction
at the Building during the
Term of this Lease, except that Landlord shall have the right
to undertake any build-out related construction in the event that Landlord rents the First Floor Premises to a tenant who
requires a build out prior to occupying
said First Floor Premises. In the event that Landlord is required
to undertake build-out construction for the First Floor Premises and/or Landlord undertakes any construction at the Building after the expiration of the Term of this Lease, Landlord agrees that it will
undertake such construction in a
such a manner and at such times
as to not unreasonably disturb
Tenant in its occupancy and use of the Premises or in its exercise of other
tights hereunder. If Landlord

 

15.5                        Brokerage.  Tenant
warrants and represents that
Tenant has dealt with no broker in connection with the consummation of this Lease.

 

15.6                        Invalidity
of Particular Provisions.
 If any term or provision of this Lease,
or the application thereof to any
person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Lease, or the application of such term or provision to persons or
circumstances other than those as to which it is held invalid
or unenforceable, shall

 

 

not be affected thereby, and
each terra and provision of this
Lease shall be valid and be enforced to the fullest extent
permitted by law.

 

15.7                        Provisions Binding. Etc.
 Except as herein otherwise provided, the terms hereof shall be binding upon and shall inure
to the benefit of the successors and assigns, respectively, of Landlord and Tenant (except in the case of Tenant, only such
successors and assigns as may be permitted hereunder) and, if Tenant shall be an individual, upon and to his heirs, executors, administrators,
successors and permitted assigns. Each term
and each provision of this Lease to be performed by Tenant shall be construed to be both a covenant and a condition. Any
reference in this Lease to
successors and assigns of Tenant
shall not be construed to constitute
a consent to assignment by Tenant.

 

15.8                        Recording.  Neither this Lease, nor a memorandum of this
Lease, shall be recorded by either party.

 

15.9                        Notice.
 All notices or other communications required hereunder shall be in writing
arid shall be deemed duly given if delivered in person (with receipt therefor), if
sent by reputable overnight delivery or courier service (e.g., Federal Express) providing for receipted delivery, or if sent by certified or registered mail, return receipt requested, postage prepaid, to the following address:

 

(a)                                  if to Landlord, at Landlord’s Address, to the
attention of Taran T. Grigsby, Esq.

 

(b)                                 if to Tenant, at Tenant’s Address, to the attention of Glenn Brack and to the following address:

 

997 Lenox Drive, Suite 111

Lawrenceville,
New Jersey, 08648

Attention:  Thomas
M. O’Brien, Esq.

 

with a copy to                                                                    Goodwin
Procter LLP

Exchange Place

53 State Street

Boston, MA 02109

Attention: Lawrence R. Cahill, PC

Facsimile: (617) 227-8591

 

Notices,
demands and requests given to Landlord
and Tenant in the manner
aforesaid shall be deemed to have been
delivered on the delivery date
shown, in the case of delivery by certified or registered mail, on the
Postal Service’s certified or registered mail return receipt for such notice, or, in the case of delivery by a private express carrier, on the airbill or other
delivery receipt for such delivery
service, except that If any
such notice is returned to the sender for any reason, the notice shall nevertheless
be deemed conclusively to have been
delivered on the earliest date on which delivery by the Postal Service or private express carrier was attempted. Every written notice
hereunder shall take effect when delivered. Either party may change its address for the giving of
notices by notice given in accordance with this Section 15.9.

 

 

15.10                 When Lease Becomes Binding; Entire Agreement; Modification; Authority.  The submission of this document for
examination and negotiation does
not constitute an offer to lease, or a reservation of, or option for, time Premises, and this
document shall become effective and binding only upon the execution and delivery hereof by both Landlord and Tenant. This Lease is the entire
agreement between Landlord and Tenant, and this Lease expressly supersedes any negotiations, considerations, representations
and understandings and proposals
or other written documents relating hereto. This Lease may be modified or altered only by written agreement between Landlord and Tenant, and no act or omission of any employee or agent of Landlord shall alter,
change or modify any of the provisions hereof Landlord and Tenant each represent and warrant to the other that the person or persons executing this Lease on its behalf has or have authority to do so and that such execution has fully
obligated and bound such party to all
terms and provisions of this Lease.

 

15.11                 Paragraph Headings and
Interpretation of Sections.  The paragraph headings throughout this instrument are for convenience and reference
only, and the words contained
therein shall in no way be held to explain, modify, amplify or aid in the interpretation, construction or meaning of the provisions of this Lease.
The provisions of this Lease shall
be construed as a whole,
according to their common
meaning (except where a precise legal interpretation is clearly evidenced),
and not for or against either
party. Use in this Lease of the words “including,”
“such as” or words of similar import, when followed by any general term, statement or matter; shall not be construed to limit such term, statement or matter
to the specified item(s),
whether or not language of non-limitation, such as “without limitation” or “including, but not
limited to,” or words of similar import, are ‘used with reference thereto, but rather shall be deemed to refer to all other terms or matters that could fall
within a reasonably broad scope of
such term, statement or matter.

 

15.12                 Waiver of Jury Trial.  Landlord
and Tenant hereby each waive trial
by jury in any action, proceeding or counterclaim brought by either against the other, on or in respect of any matter whatsoever arising out of or in any way connected with this Lease, the relationship
of Landlord and Tenant or Tenant’s
use or occupancy of the Premises.

 

15.13                 Time Is of the Essence.  Time
is of the essence of each provision of this Lease.

 

15.14                 Multiple
Counterparts.  This Lease
may be executed in multiple counterparts,
each of which shall be deemed
an original and all of which together
shall constitute one and the
same document.

 

15.15                 Governing Law.  This
Lease shall be governed by the laws of the state in which the Premises is located.

 

 

IN
WITNESS WHEREOF, Landlord and Tenant have caused this Lease to be duly executed, under seal,
by persons hereunto duly authorized, as of the date first set forth above.

 

	
   

  	
  LANDLORD:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  QUINCY HAYWARD STREET,
  LLC

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/

  	
   

  	
   

  
	
   

  	
   

  	
  

     Name:

  	
   

  	
   

  
	
   

  	
   

  	
     Title: Manager

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  TENANT:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  IMO INDUSTRIES, INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/

  	
   

  	
   

  
	
   

  	
   

  	
  

    Name: Thomas M. O’Brien

  	
   

  
	
   

  	
   

  	
    Title:   Senior
  Vice President and General Counsel

  	
   

  

 

 

HOGAN
& HARTSON

L.L.P

 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  111 SOUTH CALVERT STREET, SUITE 1600

  
	
   

  	
  November 3, 2004

  	
   

  	
  BALTIMORE,
  MARYLAND 21202

  
	
   

  	
   

  	
   

  	
  TEL (410) 659-.2700

  
	
   

  	
   

  	
   

  	
  FAX
  (410) 589-6981

  
	
   

  	
   

  	
   

  	
  WWW.HHLAW.COM

  

 

Quincy Hayward
Street, LLC

2181
Washington Street

Suite 101

Boston,
Massachusetts 02119

 

Re:          Lease Agreement with IMO Industries
Inc.

 

Ladies & Gentlemen:

 

This firm represents IMO
Industries Inc. (“IMO”) in
connection with the proposed transfer of substantially all of the assets and
certain liabilities related to its Boston Gear division (the “Transaction”) to Boston Gear LLC (“Boston Gear”), a wholly-owned subsidiary
of Power Transmission Holding LLC, which is an affiliate of Colfax Corporation.

 

In connection with the
Transaction, Quincy Hayward Street, LLC’s consent is required to assign the
above-referenced Agreement (the “Agreement”), which is enclosed herewith,
between IMO and Quincy Hayward Street, LLC to Boston Gear.  This consent is required pursuant to Section
7.1 of the Agreement. Boston Gear has agreed to assume the obligation for
continued performance on IMO’s part under the Agreement.

 

IMO hereby requests the
consent of Quincy Hayward Street, LLC to the assignment of all of its rights
and obligations under the Agreement to Boston Gear.  Please indicate Quincy Hayward Street, LLC’s
consent to such assignment by having this letter signed where indicated by an
authorized representative of Quincy Hayward Street, LLC and returning it to me
in the provided envelope at your earliest convenience.

 

 

WASHINGTON, DC

 

BERLIN
BRUSSELS LONDON PARIS BUDAPEST
PRAGUE WARSAW MOSCOW TOKYO

 

NEW
YORK BALTIMORE McLEAN MIAMI DENVER BOULDER COLORADO SPRINGS LOS ANGELES

 

 

In the event that the Transaction is not consummated, this Assignment
shall have no force or effect.

 

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  W. Bryan
  Rakes

  

 

 

Acknowledged and Agreed to:

 

Quincy Hayward Street, LLC

 

 

	
  By:

  	
   

  
	
   

  	
  

  Authorized Officer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  cc:

  	
  Thomas
  O’Brien, General Counsel

  	
   

  

 

2Exhibit
10.8

 

LEASE

 

THIS
LEASE, made as of the 1st day of April 1993, by and between Textron ~Inc.,
a Delaware corporation, having an office at 40 Westminster Street, Providence,
Rhode Island 02903 (“Lessor”) and Nuttall Gear Corporation, a Delaware corporation,
P.O. Box 1032, Niagara Falls, NY 14302 (“Lessee”),

 

WITNESSETH:

 

In consideration of the
mutual covenants and conditions herein contained, the parties hereto agree as
follows:

 

ARTICLE I

 

1.01                           Premises. Subject to the following terms and conditions, Lessor hereby leases
to Lessee approximately 105,400 square feet of space (the “Area of the Premises”)
as shown on Lessee’s Floor Plan annexed hereto as Exhibit A (the “Premises”)
located in the building complex known as the Niagara International Trade Center
located at 2221 Niagara Falls Boulevard, Wheatfield, New York (the “Complex”)
and described more particularly on Exhibit B, Attachment B-1 annexed hereto.

 

1.02                           Common Areas. In addition to all facilities which serve
the Premises exclusively, Lessee shall have the right to use, in common with
Lessor and other tenants: (i) the common lobbies, lavatories, corridors,
stairways and elevators serving the Premises in common with other areas; (ii)
common walkways necessary for access to the Premises; and (iii) loading dock
areas.

 

1.03                           Lease of Personal Property. The equipment listed in Exhibit “D” now
located on the premises is leased to the Lessee for the term of the building
lease for the sole benefit of the Lessee, AS IS, WHERE IS. The Lessee covenants
and agrees not to remove, transfer, or assign any property leased hereunder and
shall keep and maintain such property in its present state of operation and
repair, normal wear and tear excepted, in accordance with good industrial with
respect to the Lease. Lessee agrees to hold harmless and indemnify Lessor for
any cost, damage, or expense arising in connection with the use of personal
property leased hereunder by Lessee or invitees of Lessee.

 

10.4                           Parking. Lessee and its officers, employees, agents, customers and invitees
shall have the use of Parking Lot No. 3 adjacent to Gate Number 6 along Walmore
Road, in common with Lessor and others whom Lessor has or hereinafter grants
rights to use. Lessee shall also have eighteen (18) “on premises” parking
spaces on north side of Building Number 2C; twelve
(12) parking spaces on east side of Building Number 3; and eighteen (18)
parking spaces in Parking Lot Number 2-A, north of Niagara Falls Boulevard, as
shown and indicated on Exhibit “A”. Use of all parking areas are subject to
such reasonable. rules and regulations as Lessor may from time to time impose,
including the right to redesignate specific areas for parking.

 

ARTICLE II - TERM

 

The
term of this Lease shall be for a period of five (5) years commencing on April 1,
1993 and ending on March 31, 1998. Lessor shall have the right to
terminate this lease for default as provided herein.

 

ARTICLE III - USE OF
PREMISES

 

Lessee
may use and occupy the Premises for the purpose of manufacturing gears and gear
drives, office space, and shipping and receiving, subject to applicable zoning
ordinances and use restrictions and the provisions of this Lease, and for no
other purpose without the prior, written consent of Lessor, Lessee, 

 

 

its employees and invitees,
shall comply with all laws, ordinances and regulations of all public
authorities relating to the Premises and the use and occupancy thereof. In the
event that any activity in or use of the Premises by Lessee, its employees or
invitees, results in any increase in the premiums for any insurance maintained
by Lessor, Lessee shall pay the amount of such increase to Lessor promptly when
billed by Lessor. Lessee, its employees and invitees shall comply with the
Regulations set forth in Exhibit C attached hereto and made a part hereof, as
the same may be modified by Lessor from time to time.

 

ARTICLE IV - CONDITION
OF PREMISES

 

Lessee
represents and warrants that Lessee has examined the Premises and accepts the
use and occupancy of the Premises as the same exist at the time of execution of
this Lease.

 

ARTICLE V - DELIVERY OF
POSSESSION

 

Lessor
shall deliver possession of the Premises on the date of commencement of the
Term. If Lessee shall occupy the Premises prior to the date of the commencement
of the Term with the consent of the Lessor, such occupancy shall be subject to
all of the terms and conditions of this Lease, including payment of rent and
all other charges.

 

ARTICLE VI
- RENT

 

6.01                           Base Rent. Lessee shall pay to Lessor basic rent in the
amount and in the manner as more fully appears on Exhibit B, Attachment B-3 (“Base
Rent”). All rentals payable hereunder shall be subject to no offsets
whatsoever. In the event that any installment of rent is not paid on the due
date thereof, interest shall accrue and be payable by Lessee on each dollar so
unpaid from the due date thereof at the rate of eighteen percent (18%) per
annum, or, if lower, at the highest rate of interest legally chargeable to or
payable by Lessee. All payments shall be made by Lessee to Lessor in monthly installments
each due in advance on the first day of each every month during the term of the
Lease at Lessor’s address set forth in the Lease or at such other address as
Lessor may designate from time to time by written notice to Lessee.

 

6.02                           Additional Rent. All other amounts payable to Lessor other
parties by Lessee pursuant to any provision of their Lease or which are paid by
Lessor after Lessee’s failure to pay in accordance with any such provision
shall be deemed Additional Rent hereunder.

 

ARTICLE VII -
ESCALATION FOR INCREASED BUILDING OPERATING EXPENSES AND TAXES

 

7.01                           Operating Expenses. If Operating Expenses, as hereinafter
defined, in any calendar year commencing with the calendar year specified in
item 7.01(a) of Exhibit B, are more than the corresponding Operating Expenses
during the Base Year (hereinafter, the “Base Year”) specified in item 7.01(b)
of Exhibit B (the “Base Year Operating Expenses”), then Lessee shall pay to
Lessor, as Additional Rent, Lessee’s Percentage Share, as defined below, of
said Operating Expenses which exceed the Base Year Operating Expenses (“Excess
Operating Expenses”), plus 5% of the Excess Operating Expenses as Lessor’s
supervisory fee. For purposes of this Section 7.01, Operating Expenses
shall mean and include any and all actual operating expenses paid or incurred
by the Lessor for the operation, maintenance and servicing of the Complex,
including, but not limited to, the following:

 

(i) The actual wages, salaries and benefits (including but not limited
to vacation pay and union payments or benefits, if any) of all Complex
employees engaged in the operation, repair and maintenance of the Complex,
including employers’ social security taxes and any other taxes which may be
levied on such wages and salaries;

 

 

(ii) All supplies and materials used in the operation and maintenance
of the Complex, including but not limited to janitorial and Complex supplies;

 

(iii) The costs of all outside contractors providing services to the
Complex, including, but not limited to, the following: security, pest control,
plumbing, electrical, structural repair, elevator maintenance, rubbish removal,
cleaning, snow removal, landscaping and signage and all costs of leasing
equipment, machinery and vehicles for use in or about or for the benefit of the
Complex;

 

(iv) Premiums paid on insurance for public liability, workers’
compensation, fire and extended coverage and other insurance attributable to
the operation of the Complex;

 

(v) Maintenance, repair, and replacement of furnishing, fixtures, equipment
and machinery at, and/or used for servicing the Complex;

 

(vi) The costs of all other items of general operation, repair and
maintenance incurred by Lessor, exclusive of expenses for alterations of the
Complex for the accommodation of a specific tenant or tenants; however, this
shall not exclude painting of vacant tenant the Premises which shall be
considered a normal operating expense;

 

(vii) The cost of necessary office supplies and expenses, legal
expense, telephone service and reasonable accounting fees; and

 

(viii) Real property taxes, special district taxes, school taxes,
assessments, special assessments and/or payments in lieu thereof assessed
against the Complex or any portion hereof, any taxes on rents received from
Lessees of the Complex and any personal property taxes assessed against
equipment, machinery or vehicles used in or about the Complex or for the
benefit thereof (“Taxes”),

 

but shall not include any
cost, such as property taxes, the actual cost of which is allocated to and paid
by Lessee, either by direct payment or reimbursement to Lessor.

 

In the event any charges are
not entirely attributable to the operation and maintenance of the Complex,
Lessor shall make a reasonable allocation of such charges to the extent
attributable to the Complex.

 

7.02                           Utility Costs. If “Utility Costs,” as hereinafter defined,
in any calendar year commencing with the calendar year specified in item 7.02
of Exhibit B, are more than the corresponding Utility Costs for the Base Year
(the “Base Year Utility Costs”), then Lessee shall pay to Lessor, as Additional
Rent, Lessee’s Percentage Share, as defined below, of said Utility Costs which
exceed the Base Year Utility Costs (“Excess Utility Costs”). For purposes of
this Section 7.02, Utility Costs shall include all electricity, water and
sewer services and/or usage charges provided to the Complex that are not
separately metered and billed to tenants of the Complex.

 

7.03                           Heating Costs. If the cost of heating the Premises (as
determined by Lessor’s engineers), in any calendar year commencing with the
calendar year specified in item 7.03 of Exhibit B, exceeds the corresponding
cost of heating the Premises during the Base Year (“Base Year Heating Costs”),
then Lessee shall pay to Lessor as Additional Rent, a sum equal to such
increase in heating costs over the Base Year Heating Costs. For purposes of
this provision, such increase, if any, will be calculated in the following
manner:

 

(i)                                     The actual fuel cost, including taxes for the
January of the applicable calendar year will be multiplied times the
annual fuel consumption rate calculated on a per square foot basis for the
Premises (or type of space occupied by Lessee in the Complex), all as
determined by Lessor’s engineers to arrive at the “Annual Per Square Feet Heat
Cost”.

 

 

(ii)                                  The Annual Per Square Foot Heating Cost will
be multiplied by the number of rentable square feet in the Premises (as set
forth in Section 1 of this Lease) to determine the Annual Heating Cost for
the Premises for the applicable calendar year.

 

7.04                           Lessee’s Percentage Share. For purposes of Subsections 7.01 and 7.02
of this Lease, Lessee’s Percentage Share shall be determined by Lessor by
dividing the Area of the Premises by the total rentable square foot Area of the
Complex specified in item 7.04 of Exhibit B and multiplying the resulting
quotient (at least to the second decimal place) by one hundred. If the total
rentable square foot Area of the Complex decreases for any reason, the Base
Year Operating Expenses and the Utility Costs Allowance shall also be reduced
proportionally to the reduction in the square footage of the Complex. However,
if the Area of the Complex increases, Lessee shall not be responsible for any
costs of acquisition, construction, servicing, or maintenance of any major
expansions or addition to the Complex during the term of this Lease.

 

7.05                           Payment of Estimated Charges. Lessor shall notify Lessee of Lessee’s
estimated pro-rata share of Taxes, any Excess Operating Expenses, any Excess
Utility Costs and the Annual Heating Cost (collectively, the “Lessee Charges”)
for each calendar year or partial year during the Lease term and Lessee shall
pay its share of such estimated tenant charges in equal monthly installments
coincident with its payment of Base Rent. Lessor shall submit to Lessee within
ninety (90) days following the close of each calendar year, a statement showing
Lessee’s actual pro-rate share of Lessee Charges. If Lessee’s actual pro-rata
share for such calendar year exceeds the amount paid by Lessee, Lessee shall
pay to the Lessor the balance due within ten (10) days after demand therefor.
If the aggregate amount paid by Lessee exceeds Lessee’s actual pro-rata share,
such excess shall be paid to Lessee within ninety (90) days following calendar
year end. Any sum due Lessee as a result of an overpayment during the last year
of the Lease shall be paid to Lessee by Lessor no later than 90 days following
completion of the last calendar year applicable to Lessee’s rights hereunder.

 

ARTICLE VIII -
UTILITIES

 

Lessor
shall furnish, at the expense of Lessee, electricity to Lessee through Lessor’s
presently installed electrical facilities for Lessee’s reasonable use of
lighting fixtures, electrical appliances, machinery and equipment as are
currently installed in the Premises. Such electricity shall be separately
metered and charged to Lessee as Additional Rent. In order to prevent Lessee
from overloading the electrical distribution facilities of the Complex, Lessee
shall make no alterations or additions to the electrical equipment and/or
appliances used in the Premises without obtaining the prior written consent of
Lessor in each such instance. Lessor shall not in any way be liable or
responsible to Lessee for any loss, damage or expense which Lessee may sustain
or incur if either the quantity or character of the electrical service is
changed or is no longer available or suitable for Lessee’s requirements. If
Lessee deems it necessary to install any riser or associated equipment to
supply Lessee’s electrical requirements, Lessor shall, upon written request of
Lessee, install such equipment, provided, however, the cost and expense of such
equipment and installation thereof shall be borne by Lessee, and provided
further that the installation of such additional equipment, in Lessor’s sole
judgment, is necessary and will not cause or create a dangerous or hazardous
condition, entail excessive or unreasonable alterations, repairs or expenses or
interfere with or disturb other tenants or occupants of the Complex. Lessee
shall furnish and install all lighting tubes, lamps, bulbs and ballasts
required in the Premises at Lessee’s expense or shall pay Lessor’s reasonable
charges therefor on demand.

 

Lessor
shall furnish such heating, water, (except process or cleaning water), electrical
and elevator service as, in its judgment, is necessary for the comfortable use
and occupancy of the Premises. It is agreed that the interruption or failure of
any such services shall not constitute an eviction or disturbance of Lessee’s
use and possession of the Premises or a breach by Lessor of any of its
obligations hereunder; that Lessor shall not by reason thereof be liable for
damages, and Lessee shall not thereby be relieved of any of its obligations
hereunder. Lessor agrees that it shall in all instances exercise reasonable
diligence to restore any service which shall be interrupted.

 

 

If
any payment of rent due hereunder shall remain unpaid for more than ten (10)
days after it shall become due, Lessor may without notice to Lessee,
discontinue furnishing heating, water and electrical services or any of them,
until all arrears of rent have been paid in full, and Lessor shall not be
liable for damages to person or property or the business of Lessee for any such
discontinuance, nor shall such discontinuance in any way be construed as
eviction of Lessee or cause an abatement of rent, or operate to release Lessee
from any of Lessee’s obligations hereunder.

 

In
the event that Lessee desires heating and electrical services at any time or
times other than the hours stated above, and Lessor consents to the furnishing
of such services at the time or times requested by Lessee, Lessee shall be
charged for same during such periods at Lessor’s then standard hourly rate
applicable during the periods when such services are furnished. Such rate may
be changed by Lessor at any time and from time to time during the Lease.

 

In
the event that Lessee holds over and continues to occupy all or any part of the
Premises after the expiration hereof or after any earlier termination, whether
with or without the consent of Lessor, such occupancy shall be construed as a
tenancy from month to month, otherwise subject to the same terms, covenants and
conditions as contained in this Lease, except that monthly rental shall be 130%
of the monthly rental then in effect for the last month of the Lease.
Notwithstanding the foregoing, Lessee shall be liable for all losses, damages,
costs, and expense, including, without limitation, attorneys’ fees end
disbursements suffered or incurred directly or indirectly by Lessor or any
other party by reason of the failure or refusal by Lessee to vacate and
surrender the Premises as and when required by the terms of this Lease.

 

ARTICLE IX - LESSEE’S
MAINTENANCE AND ALTERATIONS

 

Lessee
shall keep the Premises in good repair, and at the expiration of the Term shall
yield and deliver up the same in like condition as when taken, reasonable use
and wear thereof excepted. Lessee shall not make any alterations to the
Premises without Lessor’s prior written consent, which may be withheld for any
reason or, if granted, conditioned upon the use by Lessee only of such
contractors as may then be employed or approved in writing by Lessor. Any
alterations made shall be the property of Lessor and shall remain on and be
surrendered with Premises on expiration or termination of this Lease, except
that (i) Lessee may remove all movable office furniture and equipment installed
by Lessee and (ii) Lessee may remove improvements, such as overhead crane
rails, electrical conduit, circuit breakers and switches, air conditioners,
humidifiers, furnaces, water heaters and drinking fountains, installed by
Lessee during the term of the lease; provided, however, that Lessee shall fully
repair (including cosmetic restoration) all damage to the Premises caused by
the removal of any such items and shall deliver the Premises to Lessor in the
same repair and operating condition as at the beginning of the term, excepting
only ordinary wear and tear. Lessor may elect within thirty (30) days before
expiration of this Lease, or within thirty (30) days after termination of this
Lease, to require Lessee to remove any alterations that Lessee has made to the
Premises. If Lessor so elects, Lessee at its cost shall restore the Premises to
the condition designated by Lessor in its notice of election, before the last
day of the Term, or within thirty (30) days after such notice of election is
given, whichever is later. If Lessee fails to remove all of Lessee’s property
and the property of others in the possession of Lessee from the Premises at the
termination of the Lease, Lessor may remove and dispose of such property in any
manner without liability therefor, and Lessee shall pay all charges for such
removal and disposal upon demand by Lessor. Lessee shall indemnify Lessor
against and hold Lessor harmless from any claim by other persons with respect
to such property.

 

ARTICLE X - LIENS

 

Lessee
shall not in any way encumber the title of Lessor in end to the Premises and
Lessee shall not have any authority to create any liens or encumbrances for
labor or materials on the Lessor’s interest in the Premises. Lessee shall keep
the Premises and property in which the leased Premises are situated 

 

 

free from any such liens and
shall indemnify Lessor against and satisfy any such liens which may obtain
because of acts of Lessee notwithstanding the foregoing prohibition.

 

ARTICLE XI -
INDEMNIFICATION

 

11.01                     Use and Occupancy. Lessee shall indemnify and hold Lessor
harmless from and against any and all loss, cost, damage and expense, including
reasonable attorneys’ fees, resulting from (a) any claim for damage or injury
to any person or property arising out of or in any way connected with Lessee’s
use and occupancy of, and ingress to and egress from, the Premises and adjoining
areas, or (b) any act or omission of Lessee, its employees, agents, guests or
invitees with respect to the Premises. In the event any action or proceeding is
brought against Lessor by reason of any such claim, Lessee, upon notice from
Lessor, shall defend the same at Lessee’s expense. Notwithstanding the
foregoing, Lessor shall be liable for, and Lessee shall not be obligated to
indemnify Lessor with respect to, any loss, damage or injury resulting from the
sole negligence of Lessor or Lessor’s authorized representatives.

 

ARTICLE XII - INSURANCE

 

12.01                     Insurance to be Maintained by Lessee. During the Term, Lessee shall, at its
expense, carry and maintain (a) Workers Compensation and Employer’s Liability
Insurance; (b) a commercial general liability insurance policy or policies or
other, similar form of public liability insurance with a combined single limit
of not less than $1,000,000 insuring against all liability of Lessee, its
employees and representatives, arising out of or in connection with Lessee’s
use or occupancy of the Premises; and (c) Automobile Liability Insurance with a
combined single limit of not less than $1,000,000. The insurance policy
required by clause (b) of the first sentence of this Section 12.01 shall
contain contractual liability coverage which specifically insures Lessee’s
indemnities contained in this Lease. The insurance policy or policies required
by clause (b) of the first sentence of this Section 12.01 shall name
Lessor as an additional insured with respect to personal injury, death and
property damage claims. Each policy shall provide that (1) not less than thirty
(30) days’ prior written notice shall be given to Lessor in the event of any
alteration in the terms of such policy or of the cancellation or non-renewal
thereof, (2) such policy shall not be invalidated as against Lessor or its
assigns for any violation of any term of the policy or Lessee’s application
therefor and (3) such insurance shall be primary insurance with respect to
Lessor and any other insurance available to Lessor shall be secondary and
excess of such insurance. Such insurance coverage may, however, be afforded by
a “blanket” policy or policies maintained by Lessee with respect to all or a
portion of Lessee’s activities on leased or owned properties. The limits
specified above shall be adjusted from time to time during the Term, upon
request by Lessor, to such higher limits, if any, as in Lessor’s judgment are
customarily carried with respect to similar properties or risks or by reason of
current experience. The amount of such required insurance coverage shall not
limit Lessee’s obligations under this Lease. Lessor makes no representation
whatsoever that the amount of such insurance coverage is adequate to protect
Lessee from any liability or damage to which Lessee may become exposed. Lessee
shall provide a copy of each such policy, or a certificate insurance, together
with evidence of payment of premiums thereon, to Lessor prior to commencement
of the Term and the Renewal Term hereof and from time to time during the Term
upon the reasonable request of Lessor, and shall furnish Lessor with evidence
of renewal of the policies not less than twenty (20) days before expiration of
the terms of the policies. In the event Lessee provides a certificate of insurance,
such certificate shall contain sufficient information for Lessor to determine
if the underlying policy complies with provisions of this Lease. At all times
during the Term, Lessee shall insure the contents of the Premises and all
improvements added by Lessee during the Term against loss or damage by fire,
including extended coverage.

 

12.02                     Insurance to be Maintained by Lessor. Lessor shall, throughout the Term maintain
on the building and other improvements that are part of the Premises a standard
policy of fire and extended coverage insurance with vandalism, malicious
mischief, special extended perils (all risk), sprinkler leakage, earthquake and
flood hazard endorsements (subject to such deductibles as may be applicable to
earthquake and flood hazard coverages) to the full replacement value thereof.
The insurance policy 

 

 

obtained by Lessor may, at
Lessor’s option, include rental value insurance insuring that the minimum
monthly rental will be paid to Lessor for a period of up to twelve (12) months
if the Premises are destroyed or rendered inaccessible by a risk insured
against by such policy of fire Insurance. The insurance policy shall be issued
in the name of Lessor. The “full replacement value” of the building and other
improvements required to be insured under this Section 12.02 shall be
determined by the company issuing the insurance policy at the time the policy
is initially obtained. Lessor may from time to time have the replacement value
redetermined by the issuing insurance company, and the amount of the insurance
policy shall be adjusted according to the redetermination for the full
replacement value.

 

12.03                     Mutual Release. Lessor and Lessee do hereby waive any and
all right of recovery, claim, suit, or cause of action against the other, their
respective agents and employees, for any loss or damage that may occur to the
Premises or any additions or improvements thereto, or any contents therein, by
reason of fire, the elements or any other causes whether or not such loss or
damage is insured against under the terms of the respective policies of
insurance required to be maintained by Lessor and Lessee pursuant to Section 12.01
and 12.02 and regardless of whether such loss or damage has been caused by the
negligent acts or omissions of Lessor or Lessee or their respective agents and
employees.

 

12.04                     Waiver of Subrogation. Each party shall cause each insurance
policy as required by this Lease to provide that the issuing insurance company
waives all right of recovery by way of subrogation against either party in
connection with any damage covered by any policy.

 

12.05                     Insurance Policy Deductible. Notwithstanding the provisions of Sections
12.03 and 12.04, in the event of any loss caused by the negligence or
misconduct of Lessee, Lessee shall be obligated for and Lessee shall pay to
Lessor the deductible portion of any insured recovery Lessor otherwise would
have been entitled to receive but for such deductible feature of the applicable
insurance policy.

 

ARTICLE XIII - FIRE

 

If
the Premises are damaged or destroyed by fire or other casualty insured under
standard fire and extended coverage insurance, Lessor shall repair and restore
the same with reasonable dispatch. The obligation of Lessor to restore is
limited to the improvements owned and installed by Lessor on the date of
commencement of the Term. Rent shall abate pro rata in proportion to the extent
of untenantability until the Premises shall be restored to a tenantable
condition. Notwithstanding any other provision herein, if damage to the Building
is so extensive that the same cannot reasonably be repaired within 180 days, or
if Lessor elects not to restore the Building to its form prior to the damage,
Lessor or Lessee may terminate this Lease by notice in writing to the other. If
the Premises are not restored to a tenantable condition within 180 days, other
than by reason of causes beyond the reasonable control of Lessor, Lessee may
terminate this Lease by notice in writing to Lessor within 15 days after the
expiration of the 180-day period.

 

ARTICLE XIV - EMINENT
DOMAIN

 

If
all of the Premises or the use and occupancy thereof are taken under the power
of eminent domain, this Lease shall terminate at the time of such taking. If
any portion of the Building or the use and occupancy thereof shell be taken
under the power of eminent domain and the remainder is unsuitable for Lessee’s
purposes, Lessor or Lessee may, at any time within 30 days after the entry of
the verdict or order for such taking, terminate this Lease by not less than 30
days’ notice in writing to the other party.

 

If
this Lease is not so terminated, rent shall be reduced in proportion to the
area of the Premises taken. All damages and compensation awarded for any taking
under the power of eminent domain shall belong to and be the property of Lessor
whether such damage or compensation be awarded for the leasehold or the fee or
other interest of Lessor or Lessee in the Premises.

 

 

ARTICLE XV - MORTGAGES

 

Lessee
acknowledges that Lessor may place one or more mortgages on the Premises and
that this Lease is subject to any such mortgage or underlying lease now or
hereafter placed upon or affecting the land and buildings of Lessor of which
the Premises are a part. Lessee agrees to execute any and all instruments
necessary to effect said subordination. The liability of the Lessor or Lessor’s
assigns under this Lease shall exist as long as such person is the owner of the
subject real estate. If any such mortgage is foreclosed, then, upon request of
the mortgagee, Lessee will attorn to the purchaser at any foreclosure sale
thereunder or the underlying Lessor and will execute such instruments as may be
necessary or appropriate to evidence such attornment. Lessee shall deliver to
Lessor or to its mortgagee, or auditors, or prospective purchaser, or to the
owner of the fee, when requested by Lessor, a certificate to the effect that
this Lease is in full force and that Lessor is not in default therein, or
stating specifically any exceptions thereto. Failure to give such a certificate
within ten (10) days after written request shall be conclusive evidence that
the Lease is in full force and effect and Lessor is not in default and Lessee
shall be stopped from asserting any defaults known to Lessee at that date.

 

ARTICLE XVI - DAMAGE

 

Lessor
shall have no liability for any loss or damage that may be occasioned by or
through the acts or omissions of others, including persons occupying other
premises in the Building or other buildings in the Facility. Lessor shall have
no liability for any loss or damage from water leakage from any source, or from
leakage, overflow, stoppage or backing up or other condition of any facilities
or utilities, or from fire, explosion or any other casualty, or for any loss or
damage from any other cause whatsoever, including theft.

 

ARTICLE XVII - LESSOR’S
RIGHT OF ENTRY

 

The
Lessor shall have the right, at reasonable times and with reasonable notice
during business hours during the Term, to enter the Premises for the purpose of
examining or inspecting same and of making such repairs or alterations therein
as the Lessor shall deem necessary. The Lessor shall also have the right to
enter the Premises at all reasonable business hours for the purpose of
displaying said Premises to prospective lessees or purchasers.

 

ARTICLE XVIII - QUIET
ENJOYMENT

 

The
Lessor covenants and agrees that Lessee, on paying the Rent and performing the
covenants set forth herein, shall and may peaceably and quietly hold and enjoy
the Premises for the Term without any hindrance or molestation from Lessor, subject
to the terms and provisions of this Lease.

 

ARTICLE XIX -
DELINQUENCY

 

If
Lessee shall fail to pay or perform any obligation of Lessee hereunder and such
failure shall continue for 10 days after written notice to Lessee with respect
to a failure to pay or for 30 days after such notice with respect to any other
obligation, except for matters affecting the safety, security or integrity of
the Building as to which matters Lessee waives the requirement for such notice,
or, unless such other obligation may not reasonably be performed within 30 days
and Lessee has commenced and is proceeding diligently to cure such default,
Lessor may, at Lessor’s option, pay or perform the same, in which event the
amount expended by Lessor therefor shall be additional rent due and payable
immediately.

 

ARTICLE XX - BANKRUPTCY

 

If
Tenant becomes the subject debtor in a case under the Bankruptcy Code (11
U.S.C. 101 at seq.), and if Landlord’s right to terminate this Lease shall be
subject to the rights of the Trustee therein to 

 

 

assume or assign this Lease,
then, to the extent permitted by law, the parties hereto agree that such
Trustee shall not have the right to assume or assign this Lease until such
Trustee

 

(a)                                  promptly cures all defaults (declared and
undeclared) under this Lease;

 

(b)                                 promptly compensates Landlord for monetary
damages incurred as a result of such default; and

 

(c)
provides “adequate assurance of future performance,” which shall mean, in
addition to any other requirements of 11 U.S.C. 365(b)(3), that all of the
following have been satisfied: (i) In addition to all rents payable under the
Lease, such Trustee shall establish with Landlord a security deposit equal to
three (3) months’ rent; (ii) such Trustee shall maintain said security deposit
in said amount whenever the same is reduced below said amount, (iii) such
Trustee has agreed that the business in the Premises shall be conducted in a
first-class manner, and (iv) the use limitations of the Premises, as
hereinabove set forth, shall not change. If all the foregoing are not
satisfied, Tenant and such Trustee shall be deemed not to have provided
Landlord with adequate assurance of future performance of this Lease.

 

ARTICLE XXI - SECURITY
DEPOSIT

 

As
security for the faithful performance of all the terms, covenants and
conditions of this Lease by Lessee, Lessee agrees to pay to Lessor upon
execution of this Lease and in any case prior to occupancy the sum specified in
item XXI Exhibit B under the caption, Security Deposit. At Lessor’s sole
discretion, such security deposit may be applied against costs incurred,
damages sustained or losses resulting from any defaults of or by Lessee
hereunder. Lessor shall have the right to transfer and/or deliver such security
deposit or any balance thereof to any purchaser of the Complex or successor to
Lessor’s rights and obligations hereunder. Thereupon Lessor shall be discharged
from any further liability in reference thereto. To the extent that Lessor
shall from time to time apply all or any portion of such security deposit to
any default of the Lessee under the terms and provisions of this Lease, Lessee
agrees upon ten (10) days’ written notice to replenish such security deposit
and failure to do so shall be deemed an Event of Default under Article XXII
of this Lease. Within 90 days following the expiration of this Lease, Lessor
shall return any portion of Lessee’s security deposit not required for
restoration of the Premises.

 

ARTICLE XXII - DEFAULT
BY LESSEE

 

Each
of the following events shall constitute, and hereafter be referred to as, an “Event
of Default”:

 

(a)                                  if Lessee fails or refuses to pay any
installment of rent as and when due hereunder unless payment in full thereof is
made within five (5) days thereafter without any requirement for notice or
demand by Lessor;

 

(b)                                 if Lessee fails or refuses to perform,
observe or comply with any covenant, agreement, duty or obligation of the
Lessee strictly according to the terms of this Lease unless such failure or
refusal is cured within thirty (30) days after receipt of notice thereof from
Lessor;

 

(c)                                  if Lessee or any guarantor of this Lease
shall make an assignment for the benefit of its creditors;

 

(d)                                 if Lessee’s interest in this Lease or in the
Premises is encumbered or taken by attachment, lien, execution of other legal
process;

 

(e)                                  if any petition shall be filed by or against
Lessee or any guarantor of this Lease in any court, whether or not pursuant to
any statue of the United States or of any State, in any bankruptcy,
reorganization, composition, extension, arrangement, receivership, insolvency
or similar proceeding or if 

 

 

Lessee, or if any guarantor
of this Lease, shall be adjudicated bankrupt, or if any such petition shall be
approved by the appropriate court or it the court shall assume jurisdiction of
the subject matter thereof;

 

(f)                                    if in any proceedings any receiver or trustee
shall be appointed for Lessee’s property or the property of any guarantor of
this Lease; or

 

(g)                                 if Lessee shall vacate or abandon the
Premises or any substantial part thereof.

 

Upon
and at any time after the happening of any one or more of the aforesaid Events
of Default, Lessee shall for all purposes be in default under this Lease and
Lessor may, at its option, exercise any or all of its rights and/or remedies as
provided in Section 22 of this Lease and as otherwise provided by law or
In equity. Lessee hereby waives any right of redemption.

 

ARTICLE XXIII - RIGHTS
AND REMEDIES OF LESSOR

 

Without
limiting any other rights and remedies of Lessor, Lessor shall have the
following rights and remedies upon and after any default by Lessee under this
Lease:

 

(a)                                  Lessor may terminate this Lease;

 

(b)                                 With or without terminating this Lease,
Lessor may re-enter the Premises and attempt to re-let the Premises or any part
thereof and remove all persons and property from the Premises, and such
property may be removed and stored in a public warehouse or elsewhere at the
cost of, and for the account of, Lessee, all without service of notice or
resort to legal process and without Lessor being deemed guilty of trespass or
becoming liable for any loss or damage that may be occasioned thereby;

 

(c)
Lessor may, at its option, with or without terminating this Lease, and without
affecting Lessee’s other obligations and liabilities under this Lease, declare
the entire amount of rent payable during the remainder of the term of this
Lease immediately due and payable and collect such amount by any lawful
procedure;

 

(d)
Lessor may, but shall not be required to, re-let the Premises or any part
thereof for such term or terms (which may be for a term extending beyond the
term of this Lease) at such rental or rentals and upon such other terms and
conditions as Lessor in its sole discretion may determine; and upon such
re-letting, all rentals received by Lessor from such re-letting shall be
applied first, to the payment of any indebtedness other than rent due hereunder
from Lessee to Lessor; second, to the payment of any costs and expenses of such
re-letting, including brokerage fees and attorneys’ fees; third, to the payment
of rent unpaid hereunder as and if accelerated, and the residue, if any, shall
be held by Lessor and applied to payment of future rent as the same may become
due and payable hereunder; and no such re-entry or taking possession of the
Premises by Lessor shall constitute an election on its part to terminate this
Lease unless a notice of termination shall be given to Lessee or unless the
termination thereof be decreed by a court of competent jurisdiction;

 

(e)
Notwithstanding any re-letting of the Premises or an part thereof described in
(b) and (d) above, without terminating this Lease, Lessor may at any time
thereafter elect to terminate this Lease.

 

All
of Lessor’s rights hereunder and at law are cumulative and the exercise of any
rights shall not preclude the exercise of any other rights Lessor has or may
have.

 

ARTICLE XXIV -
BANKRUPTCY

 

If
Lessee becomes the subject debtor in a case under the Bankruptcy Code (11
U.S.C. 101 et seq.), and If Lessor’s right to terminate this Lease shall be
subject to the rights of the Trustee therein to 

 

 

assume or assign this Lease,
then, to the extent permitted by law, the parties hereto agree that such
Trustee shall not have the right to assume or assign this Lease until such
Trustee

 

(a)                                  promptly cures all defaults (declared and
undeclared) under this Lease;

 

(b)                                 promptly compensates Lessor for monetary
damages incurred as a result of such default; and

 

(c)                                  provides “adequate assurance of future
performance,” which shall mean, In addition to any other requirements of 11
U.S.C. 365Cb)(3), that all of the following have been satisfied:  (i) in addition to all rents payable under the
Lease, such Trustee shall establish with Lessor a security deposit equal to
three (3) months’ rent; (ii) such Trustee shall maintain said security deposit
in said amount whenever the same is reduced below said amount, (iii) such
Trustee has agreed that the business in the Premises shall be conducted In a
first-class manner, and (Iv) the use limitations of the Premises, as
hereinabove set forth, shall not change. If all the foregoing are not
satisfied, Lessee and such Trustee shall be deemed not to have provided Lessor
with adequate assurance of future performance of this Lease.

 

ARTICLE XXV - DEFAULT
BY LESSOR

 

The
term “Lessor”, as used in this Lease, so far as covenants and agreements on the
part of Lessor are concerned, shall be limited to mean and include only the
owner or owners at the time in question of the rights granted Lessor in this
Lease and, in the event of any transfer or transfers of the title to same,
Lessor herein named (and, in case of any subsequent transfers or conveyances,
the then grantor) shall be automatically freed and relieved from and after the
date of such transfer and conveyance of all liability as respects the performance
of any covenants and agreements on the part of Lessor. Lessor or the then
grantor shall turn over to the grantee all monies and security, If any, then
held by Lessor or subgrantor on behalf of Lessee and shall assign to such
grantee all right, title and interest of Lessor of such grantor thereto.

 

Notwithstanding
any contrary provision of this Lease, It Is specifically understood and agreed
by Lessor and Lessee that there shall be absolutely no personal liability on
the part of Lessor (including any director, officer, employee, shareholder,
partner or agent thereof) or its successors with respect to any of the terms,
conditions and covenants of this Lease, and that Lessee shall look solely to
the interest of Lessor in the Complex for the satisfaction of each and every
right and remedy of Lessee in the event of any breach or default by Lessor with
respect to any terms, conditions or covenants of this Lease to be observed or
performed by Lessor.

 

ARTICLE XXVI - LESSEE’S
CERTIFICATE

 

Lessee
shall, from time to time, within ten (10) days after request by Lessor, execute
and deliver to Lessor a certificate confirming this Lease, the status thereof
and of the Premises and Lessee’s occupancy thereof, in such form and with
respect to such other matters as Lessor may reasonably request. Lessee shall
not be entitled to withhold such certificate on the basis of any claimed
default by Lessor hereunder.

 

ARTICLE XXVII - NOTICES

 

Any
notice, statement, certificate, request, demand, or other communications (“Notices”)
required or permitted to be given or delivered pursuant to this Lease shall be
in writing either hand delivered, sent by registered or certified mail, postage
prepaid, return receipt requested, or sent by a guaranteed nationally
recognized overnight delivery service. Notices shall be deemed delivered
immediately if delivered by hand, five (5) days after sending by registered or
certified mail, or one (1) day after sending by guaranteed overnight delivery
service. All notices to Lessor shall be addressed to:

 

 

Textron
Inc.

40
Westminster Street

Providence,
Rhode Island 02903

Attn:                                Director - Real Estate

 

or to such other address as
Lessor may designate for itself in the manner herein provided. All Notices to
Lessee shall be addressed to Lessee at the Premises or any other known address
of Lessee.

 

ARTICLE XXVIII -
SUCCESSORS AND ASSIGNS

 

Except
to the extent otherwise provided herein, this Lease shall be binding upon and
shall inure to the benefit of the parties hereto and their respective
successors and assigns.

 

ARTICLE XXIX -
GOVERNING LAW AND JURY TRIAL

 

This
Lease shall be governed by and interpreted under the laws of the State of New
York. The parties hereby waive trial by jury in any action, proceeding or
counterclaim brought by either party against’ the other arising out of this
Lease or Lessee’s use or occupancy of the Premises.

 

ARTICLE XXX -
INVALIDITY OF PARTICULAR PROVISIONS

 

If
any term or provision of this Lease, or the application thereof, shall to any
extent be invalid or unenforceable, the remainder of this Lease shall not be
affected thereby, and each such term and provision of this Lease shall be valid
and enforceable to the fullest extent permitted by law.

 

ARTICLE XXXI - ENTIRE
AGREEMENT

 

This
Lease, and the exhibits attached hereto, contains all of the covenants,
promises and agreements between Lessor and Lessee concerning the Premises, and
there are no covenants, promises, agreements, conditions, or understandings
either oral or written, other than as herein set forth. No subsequent alteration,
amendment, change or addition to this Lease shall be binding unless in writing
and signed by the party to be bound thereby.

 

ARTICLE XXXII - WAIVER

 

The
waiver by Lessor of any breach of any term covenant or condition herein
contained is not intended, and shall not be deemed, to be a waiver of such
term, covenant or condition or any subsequent breach of the same or any other
term, covenant or condition therein contained. The subsequent acceptance of any
rent or other sum by Lessor is not intended, arid shall not be deemed, to be a
waiver of any prior breach by Lessee of any term, covenant or condition of this
Lease, other then the failure of Lessee to pay the particular rent or other sum
so accepted, regardless of Lessor’s knowledge of such prior breach at the time
of such acceptance.

 

ARTICLE XXXIII - EFFECT
OF CAPTIONS

 

The
captions or legends in this Lease are inserted only for convenient reference or
identification of the particular Sections. Such captions are in no way
intended, and shall not be deemed, to describe, interpret, define, limit or
extend the intent or extent of this Lease, or any term or provision hereof.

 

ARTICLE XXXIV - BROKER

 

Lessee
warrants and represents that Lessee has not had any dealings with any realtor,
broker, or agent, in connection with the negotiation of this Lease. Lessee
agrees to pay and to hold Lessor harmless from any cost, expense (including
reasonable costs of suit and attorneys’ fees) or liability for any 

 

 

compensation, commission or
charges claimed by any realtor, broker or agent other than those named above.

 

ARTICLE XXXV -
RELOCATION OF LESSEE SPACE

 

Lessor
shall have the right upon written notice, delivered at least thirty (30) days
in advance of the proposed moving date specified in the notice, to move Lessee
to comparable space within the Complex at Lessor’s cost and expense, including
necessary moving and remodeling expenses, so that Lessee shall have, in the new
location, facilities of comparable quality to that which it occupied hereunder.

 

ARTICLE XXXVI -
ADDITIONAL TERMS AND CONDITIONS

 

All
additional terms and conditions, if any, set forth in item XXXVI of Exhibit B
under the caption, Additional Terms and Conditions, are an integral part of
this Lease.

 

 

IN
WITNESS WHEREOF, the parties have caused this Lease to be duly executed by
their duly authorized officers and/or agents as of the day and year first set
forth above.

 

	
  ATTEST:

  	
   

  	
  LANDLORD:   TEXTRON INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TENANT:  NUTTALL GEAR CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

Amendment No. 1 to lease

 

AMENDMENT
NO. 1, dated as of the 1st day of July 1993 to the LEASE (the “Lease”)
dated as of the 1st day of April 1993 by and between Textron Inc., a
Delaware corporation, having an office at 40 Westminster Street, Providence,
Rhode Island 02903 (“Lessor”) and Nuttall Gear Corporation, a Delaware
corporation, P.O. Box 1032, Niagara Falls, NY 14302 (“Lessee”),

 

WITNESSETH:

 

WHEREAS,
Lessee has obtained an allocation of low cost expansion power from the New York
State Power Authority (“NYPA”), and

 

WHEREAS,
in order for Lessee to accept this allocation, modifications must be made to
the electrical distribution system at the Complex to allow for separate and
direct metering by NYPA of Lessee’s electrical power utilization; and

 

WHEREAS,
Textron and Nuttall desire to set forth their respective responsibilities
concerning such modifications to the electrical distribution system and the
changes to the Lease that are necessary as a result of such modifications.

 

In consideration of the
mutual covenants and conditions contained herein and in the Lease, the parties
hereto agree as follows:

 

I.                                         Lessee shall engage an electrical contractor
acceptable to Lessor to make modifications to the distribution system to allow
for separate and direct metering by Niagara Mohawk Power Corporation of Lessee’s
electrical power utilization (the “Modifications”). The Modifications shall be
made in accordance with plans, described on Exhibit I attached hereto, that
have been reviewed and accepted by the Niagara Mohawk Power Corporation. All
costs associated with the Modifications shall be borne solely by Lessee.

 

II.                                     Lessee shall make arrangements for metering
equipment to be installed in the main substation by the Niagara Mohawk Power
Corporation. Such metering equipment shall be installed at no cost to Lessor.
The meter shall be in the name of Lessee and Lessee shall be direct billed by
Niagara Mohawk Power Corporation for electricity.

 

III.                                 Lessee shall be responsible for operation and
maintenance at Lessee’s sole cost of all equipment and wiring associated with
Lessee’s electrical power use from the line terminal at the feed or top of the
switch gear installed by Lessee in the main substation. Lessee’s responsibility
shall include but shall not be limited to maintenance of wiring, insulators,
fuses, disconnects, poles and transformers that are dedicated to the
distribution of power to the Premises. Lessee shall be required to obtain
Lessor’s permission to gain access for Lessee’s approved contractor to the main
substation.

 

IV.                                 Lessor shall cause cleaning and routine
maintenance to the power transformer known as the “Heat-treat substation
transformer” to be verified by an electrical contractor reasonably acceptable
to Lessee during the power shutdown scheduled for the Modifications.
Responsibility for the transformer shall be assumed by Lessee when the
transformer is re-energized and Lessee shall have no recourse to Lessor with
respect to the condition or maintenance of the transformer after it is
re-energized.

 

 

V.                                     Lessee shall indemnify and hold Lessor
harmless from and against any and all loss, cost, damage and expense, including
reasonable attorneys’ fees, resulting from (a) any claim for damage or injury
to any person or property arising out of or in any way connected with the
Modifications and the power distribution system serving the Premises, Lessee’s
use of the Modifications and the power distribution system serving the Premises
and entry by Lessee, its employees, agents, or contractors upon the electrical
substation premises or elsewhere in the Complex in connection with the
operation and maintenance of the electrical distribution system serving the
Premises, or (b) any act or omission of Lessee, its employees, agents, guests
or invitees with respect to the Modifications or Lessee’s use, operation or
maintenance of the Modifications and power distribution system serving the
Premises. In the event any action or proceeding is brought against Lessor by
reason of any such claim, Lessee, upon notice from Lessor, shall defend the
same at Lessee’s expense. Notwithstanding the foregoing, Lessor shall be liable
for, and Lessee shall not be obligated to indemnify Lessor with respect to, any
loss, damage or injury resulting from the sole negligence of Lessor or Lessor’s
authorized representatives.

 

VI.                                 Lessee shall engage only electrical
contractors reasonably acceptable to Lessor in the performance of the
Modifications and maintenance of the Modifications and the power distribution
system serving the Premises.

 

VII.                             Upon expiration or termination of the Lease
or at such time as Nuttall deems the Modifications to be no longer necessary,
Lessee may, at its option, either leave all improvements and modification in
place or, if Lessee chooses to remove the Modifications, shall restore the
electrical distribution system to its configuration and condition existing
prior to the modifications and, if such election is made before expiration or
termination of the Lease, Article VIII of the Lease shall be amended to
read as it did before it was modified by this Amendment No. 1. Such
configuration is shown on Exhibit VIII hereto, and Lessee acknowledges that the
electrical distribution system as shown on Exhibit VU! is in good operating
condition.

 

VIII.                         Effective as of the time of Heat-treat
Substation Transformer is re-energized, Article VIII of the Lease shall be
amended to read as follows:

 

ARTICLE VIII- UTILITIES

 

Lessee
shall purchase electricity directly from Niagara Mohawk Power Corporation (“NMPC”)
and shall be responsible for making payment for electricity directly to NMPC.
Lessor shall have no obligation or responsibility to Lessee with respect to the
provision of electricity to the Premises.

 

Lessee
shall furnish and install all lighting tubes, lamps, bulbs and ballasts
required in the Premises at Lessee’s expense or shall pay Lessor’s reasonable
charges therefor on demand.

 

Lessor
shall furnish such heating, water (except process or cleaning water), and
elevator service as, in its judgment, is necessary for the comfortable use and occupancy
of the Premises. It is agreed that the interruption or failure of any such
services (and of electricity purchased directly by Lessee from NMPC) shall not
constitute an eviction or disturbance of Lessee’s use and possession of the
Premises or a breach by Lessor of any of its obligations hereunder; that Lessor
shall not by reason thereof be liable for damages, and Lessee shall not thereby
be relieved of any of its obligations hereunder. Lessor agrees that it shall in
all instances exercise reasonable diligence to restore any service which shall
be interrupted and which Lessor is obligated to provide hereunder.

 

If
any payment of rent due hereunder shall remain unpaid for more than ten (10)
days after it shall become due, Lessor may without notice to Lessee,
discontinue furnishing heating and water services or 

 

 

either of them, until all
arrears of rent have been paid in full, and Lessor shall not be liable for
damage to person or property or the business of Lessee for any such
discontinuance, nor shall such discontinuance in any way be construed an
eviction of Lessee or cause an abatement of rent, or operate to release Lessee
from any of Lessee’s obligations hereunder.

 

IX.                                Effective as of the date of this Amendment,
the last paragraph of Article VIII of the Lease shall be redesignated for
clarity as ARTICLE VIIIA - HOLDOVER. The text of that paragraph shall
remain unchanged, as follows:

 

In
the event that Lessee holds over and continues to occupy all or any part of the
Premises after the expiration hereof or after any earlier termination, whether
with or without the consent of Lessor, such occupancy shall be construed as
tenancy from month to month, otherwise subject to the same terms, covenants and
conditions as contained in this Lease, except that monthly rental shall be 130%
of the monthly rental then in effect for the last month of the Lease.
Notwithstanding the foregoing, Lessee shall be liable for all losses, damages,
costs and expense, including, without limitation, attorneys’ fees and disbursements
suffered or incurred directly or indirectly by Lessor or any other party by
reason of the failure or refusal by Lessee to vacate and surrender the Premises
as and when required by the terms of this Lease.

 

IN
WITNESS WHEREOF, the parties have caused this Amendment No. 1 to Lease to be
duly executed by their duly authorized officers and/or agents as of the day and
year first set forth above.

 

	
  ATTEST:

  	
   

  	
  LANDLORD:  TEXTRON INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TENANT:  NUTTALL GEAR CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

Amendment No. 2 to Lease

 

AMENDMENT
NO. 2, dated as of the 21st day of October 1996, to that certain Lease
dated as of the 1st day of April 1993 (the “Lease”) by and between Textron
Inc., a Delaware corporation, having an office at 40 Westminster Street,
Providence, Rhode Island 02903 (“Lessor”) and Nuttall Gear Corporation, a
Delaware corporation, P. O.. Box 1032, Niagara Falls, NY 14302 (“Lessee”).

 

WITNESSETH:

 

WHEREAS,
the Lease was amended by Amendment No. 1 dated as of the 1st day of July, 1993;

 

NOW,
THEREFORE, in consideration of the mutual covenants and agreements contained
herein, the parties hereto agree to further amend the Lease as follows:

 

I.                                         The term of the Lease extension shall be for
a period of five (5) years
commencing April 1, 1998 and ending March 31, 2003.

 

II.                                     The Lessee may elect to extend the Lease for
an additional five (5) years by giving Lessor written notice of its election on
or before March 31, 2002.
Lessor may choose to deny this option if leasing activity at the facility
ceases by giving Lessee written notice of such effect on or before April 30,
2002.

 

III.                                 Cost per Square Foot, Monthly Rental, and
Annual Rental (collectively “Base Rent”) for the first two years of the Lease
extension shall be as set forth in Exhibit B attached hereto. Base Rent for the
third and each subsequent year of the Lease extension, including the sixth
through tenth years if the Lease option is exercised by Lessee and accepted by
Lessor, shall be subject to escalation calculated by reference to the Consumer
Price Index for All Urban Consumers for the Chicago metropolitan area (the “Price
Index”) published by the Bureau of Labor Statistics of the United States
Department of Labor or any successor agency. In the event the Price Index is no
longer published, Lessor and Lessee shall in good faith agree to a substitute
index for the purpose of determining the adjustment to Base Rent due for each
such year. Commencing with the third year of the Lease extension, Base Rent
shall be calculated by multiplying the Base Rent in effect during the second
year of the Lease extension by a fraction, the numerator of which shall be the
Price Index published most recently before January 1, 2000 and the
denominator of which shall be the Price Index published most recently before
the January 1 immediately preceding the Lease year for which escalated
Base Rent are being determined. In no event shall Base Rent for any year of the
renewal period be less than Base Rent in effect during the second year of the
Lease extension. The CPI rent increase will not exceed 4% per year.

 

IV.                              This Amendment shall serve as the amended
lease document for Parcels A, B, C, D, E, F and G and except as amended herein,
all other terms and conditions of the Lease dated April 1, 1993 shall remain
in full force and effect and govern this transaction.

 

 

IN
WITNESS WHEREOF, the parties have caused this Amendment No. 2 to Lease to be
duly executed by their duly authorized officers and/or agents as of the day and
year first set forth above.

 

	
  ATTEST:

  	
   

  	
  LANDLORD:  TEXTRON INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Executive Vice President
  Administration

  and Chief Human Resources Officer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TENANT:  NUTTALL GEAR CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

EXHIBIT B

 

ARTICLE VI – RENT

 

6.01
Base Rent

 

Base
rent shall be paid plus pro-rata share of property taxes per square foot of
complex and all metered utilities including, but not limited to electric, gas
and water.

 

Base Rent shall be payable
on Parcels A, C, D, and E (99,844 square feet) per the following schedule

 

	
  Year

  	
   

  	
  Dates

  	
   

  	
  Cost per Square Foot

  	
   

  	
  Monthly

  Rental

  	
   

  	
  Annual

  Rental

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  4/1/98-3/31/99

  	
   

  	
  $

  	
   3.20

  	
   

  	
  $

  	
  26,625

  	
   

  	
  $

  	
  319,501

  	
   

  
	
  2

  	
   

  	
  4/1/99 - 3/31/2000

  	
   

  	
  $

  	
   3.20

  	
   

  	
  $

  	
  26,625

  	
   

  	
  $

  	
  319,501

  	
   

  
	
  3

  	
   

  	
  4/1/2000 - 3/31/2001

  	
   

  	
  Subject to CPI Increase

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
  4/1/2001 - 3/31/2002

  	
   

  	
  Subject to CPI Increase

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  4/1/2002 - 3/31/2003

  	
   

  	
  Subject to CPI Increase

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
  4/1/2003 - 3/31/2004

  	
   

  	
  Subject to CPI Increase

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7

  	
   

  	
  4/1/2004 - 3/31/2005

  	
   

  	
  Subject to CPI Increase

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8

  	
   

  	
  4/1/2005 - 3/31/2006

  	
   

  	
  Subject to CPI Increase

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9

  	
   

  	
  4/1/2006 - 3/31/2007

  	
   

  	
  Subject to CPI Increase

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10

  	
   

  	
  4/1/2007 - 3/31/2008

  	
   

  	
  Subject to CPI Increase

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Base Rent shall be payable
on Parcel B (2,200 square feet) per the following schedule:

 

	
  Year

  	
   

  	
  Dates

  	
   

  	
  Cost per Square Foot

  	
   

  	
  Monthly

  Rental

  	
   

  	
  Annual

  Rental

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  4/1/98-3/31/99

  	
   

  	
  $

  	
   4.60

  	
   

  	
  $

  	
  843

  	
   

  	
  $

  	
  10,120

  	
   

  
	
  2

  	
   

  	
  4/1/99 - 3/31/2000

  	
   

  	
  $

  	
   4.60

  	
   

  	
  $

  	
  843

  	
   

  	
  $

  	
  10,120

  	
   

  
	
  3

  	
   

  	
  4/1/2000 - 3/31/2001

  	
   

  	
  Subject to CPI Increase

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
  4/1/2001 - 3/31/2002

  	
   

  	
  Subject to CPI Increase

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  4/1/2002 - 3/31/2003

  	
   

  	
  Subject to CPI Increase

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
  4/1/2003 - 3/31/2004

  	
   

  	
  Subject to CPI Increase

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7

  	
   

  	
  4/1/2004 - 3/31/2005

  	
   

  	
  Subject to CPI Increase

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8

  	
   

  	
  4/1/2005 - 3/31/2006

  	
   

  	
  Subject to CPI Increase

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9

  	
   

  	
  4/1/2006 - 3/31/2007

  	
   

  	
  Subject to CPI Increase

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10

  	
   

  	
  4/1/2007 - 3/31/2008

  	
   

  	
  Subject to CPI Increase

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

1

 

Base Rent shall be payable
on Parcels F & G (3,356 square feet) per the following schedule:

 

	
  Year

  	
   

  	
  Dates

  	
   

  	
  Cost per Square Foot

  	
   

  	
  Monthly

  Rental

  	
   

  	
  Annual

  Rental

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  4/1/98-3/31/99

  	
   

  	
  $

  	
   1.00

  	
   

  	
  $

  	
  280

  	
   

  	
  $

  	
  3,356

  	
   

  
	
  2

  	
   

  	
  4/1/99 - 3/31/2000

  	
   

  	
  $

  	
   1.00

  	
   

  	
  $

  	
  280

  	
   

  	
  $

  	
  3,356

  	
   

  
	
  3

  	
   

  	
  4/1/2000 - 3/31/2001

  	
   

  	
  Subject to CPI Increase

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
  4/1/2001 - 3/31/2002

  	
   

  	
  Subject to CPI Increase

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  4/1/2002 - 3/31/2003

  	
   

  	
  Subject to CPI Increase

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
  4/1/2003 - 3/31/2004

  	
   

  	
  Subject to CPI Increase

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7

  	
   

  	
  4/1/2004 - 3/31/2005

  	
   

  	
  Subject to CPI Increase

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8

  	
   

  	
  4/1/2005 - 3/31/2006

  	
   

  	
  Subject to CPI Increase

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9

  	
   

  	
  4/1/2006 - 3/31/2007

  	
   

  	
  Subject to CPI Increase

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10

  	
   

  	
  4/1/2007 - 3/31/2008

  	
   

  	
  Subject to CPI Increase

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

Amendment No. 3 to Lease

 

AMENDMENT
NO. 3, dated as of the 18th day of February 1998, to that certain Lease
dated as of the 1st day of April 1993 (the “Lease”) by and between Textron
Inc., a Delaware corporation, having an office at 40 Westminster Street,
Providence, Rhode Island 02903 (“Lessor”) and Nuttall Gear LLC (formerly
Nuttall Gear Corporation), a Delaware Corporation, P. 0. Box 1032, Niagara
Falls, NY 14302 (“Lessee”).

 

WITNESSETH:

 

WHEREAS,
the Lease was amended by Amendment No. 1 dated as of the 1st day of July, 1993;

 

WHEREAS,
the Lease was amended by Amendment No. 2 dated as of the 21st day of October,
1996;

 

NOW,
THEREFORE, in consideration of the mutual covenants and agreements contained
herein, the parties hereto agree to further amend the Lease as follows:

 

I.                        Lease additional 17,454 square feet of space
in Building Number 2 and 2B commencing February 01, 1998.

 

This area will be identified
as Parcels “H”, “I”, “J”, and “K” as shown on Exhibit A attached and is
described as follows:

 

	
  Parcel

  	
   

  	
  Location

  	
   

  	
  Space/ 

  Sq. Ft.

  	
   

  	
  Description

  	
   

  	
  Cost per 

  Sq. Ft.

  	
   

  	
  Monthly 

  Rent

  	
   

  
	
  “H”

  	
   

  	
  Bldg. No. 2— Col. 49N northwest 15 ft. then
  due north 28ft., then 15 ft. northeast to Col. 49R, then east to Col. 50 R,
  south to Col. 50N, then west to Col. 49N.

  	
   

  	
  1,679

  	
   

  	
  Dead Storage

  	
   

  	
  $

  	
  1.00/yr.

  	
   

  	
  $

  	
  140.00

  	
   

  
	
  “I”

  	
   

  	
  Bldg. No. 2B – Col. 25V north to 25X, then
  east to Col. 29X, then south to 29V, then west to Col. 25

  	
   

  	
  5,000

  	
   

  	
  Manufacturing

  	
   

  	
  $

  	
  3.20/yr.

  	
   

  	
  $

  	
  1,333.00

  	
   

  
	
  “J”

  	
   

  	
  Bldg. No. 2 – Col. 39J, north 40’ along 39,
  then east to a point 10’ east of Col. 40, then south along this line 40’ to a
  point 10’ east of 40J, then west to 39J.

  	
   

  	
  1,400

  	
   

  	
  Office

  	
   

  	
  $

  	
  4.60/yr.

  	
   

  	
  $

  	
  537.00

  	
   

  

 

 

	
  Parcel

  	
   

  	
  Location

  	
   

  	
  Space/ 

  Sq. Ft.

  	
   

  	
  Description

  	
   

  	
  Cost per 

  Sq. Ft.

  	
   

  	
  Monthly 

  Rent

  	
   

  
	
  “K”

  	
   

  	
  Bldg. 2 – Col. 48N north to 48T, then west
  to Col. 44T, then south to 44N, then east to Col. 48N. less 625 sq. ft. of
  internal office space.

  	
   

  	
  9,375

  	
   

  	
  Storage

  	
   

  	
  $

  	
  2.60/yr.

  	
   

  	
  $

  	
  2,031.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Total

  	
   

  	
  17,454

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  4,041.00

  	
   

  

 

The rent for Parcel “H” will
be $1.00/sq. ft. per year payable in monthly installments of $140.00 and the
term will be incorporated into the lease commencing February 01, 1998 until
March 31, 2003.

 

The rent for Parcel “I” will
be $3.20/sq. ft. per year payable in monthly installments of $1,333.00 and the
term will incorporated into the lease commencing February 01, 1998 until March 31,
2003.

 

The rent for Parcel “3” will
be $4.60/sq. ft. per year payable in monthly installments of S537.00 and will
be incorporated into the lease commencing February 01, 1998 until March 31,
2003.

 

The rent for Parcel “K” will
be $2.60/sq. ft. per year payable in monthly installments of $2,031.00 and the
term will be month to month commencing February 01, 1998.

 

Base rent shall be paid plus
pro-rata share of property taxes per square foot of complex and all metered
utilities including, but not limited to electric, gas and water.

 

Rate increases for Parcel “H”,
“I”, “3” and “K” will occur annually in years 3, 4 and 5 and will be tied into the Consumer Price
Index as issued by the Bureau of Labor Statistics. If the Lease option is
exercised, years 6 through 10 will be subject to annual CPI increases.

 

This addition will bring the
new total area under lease to Nuttall Gear LLC to 122,854 square feet and the
new total month rent shall be $31,789.00.

 

 

This letter shall serve as
the amended lease document for Parcel “H”, “I”, “J”, “K” and except as amended
herein, all other terms and conditions of our lease dated April 01, 1993
shall remain in full force and effect and govern this transaction.

 

 

	
  ATTEST:

  	
   

  	
  LANDLORD:  TEXTRON INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Alfred J. Casazza, Jr.

  	
   

  
	
   

  	
   

  	
   

  	
  Director of Real Estate
  and Power of Attorney for:

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  John D. Butler

  	
   

  
	
   

  	
   

  	
   

  	
  Executive Vice President

  and Chief Human Resources Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TENANT:  NUTTALL GEAR CORPORATION

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Christopher C. Collins

  	
   

  
	
   

  	
   

  	
   

  	
  President

  	
   

  
							

 

 

Amendment No. 4 to Lease

 

AMENDMENT
NO. 4, dated as of the 12th day of June 1998, to that certain Lease dated
as of the 1st day of April 1993 (the “Lease”) by and between Wheatfield Business
Park, LLC (formerly Textron Inc., a Delaware corporation, having an office at 40
Westminster Street, Providence, Rhode Island 02903) (“Lessor”) and Nuttall
Gear, LLC (formerly Nuttall Gear Corporation), a Delaware Corporation, P. 0.
Box 1032, Niagara Falls, NY 14302 (“Lessee”).

 

WITNESSETH:

 

WHEREAS,
the Lease was amended by Amendment No. 1 dated as of the 1st day of July, 1993;

 

WHEREAS,
the Lease was amended by Amendment No. 2 dated as of the 21stday of October,
1996;

 

WHEREAS,
the Lease was amended by Amendment No. 3 dated as of the 18th day of February,
1998;

 

NOW,
THEREFORE, in consideration of the mutual covenants and agreements contained
herein, the parties hereto agree to further amend the Lease as follows:

 

I.                        Lease an additional 828 square feet of space
in Building Number 2 commencing May 1, 1998.

 

This area will be identified
as Parcel “L” as shown on Exhibit A attached and is described as follows:

 

	
  Parcel

  	
   

  	
  Location

  	
   

  	
  Space/ 

  Sq. Ft.

  	
   

  	
  Description

  	
   

  	
  Cost per 

  Sq. Ft.

  	
   

  	
  Monthly 

  Rent

  	
   

  
	
  “L”

  	
   

  	
  Bldg. No. 2— Col. 39L Due west 18 ft. then
  due north 36 ft., then due east 22 ft., then due south 44 ft.

  	
   

  	
  828

  	
   

  	
  Office

  	
   

  	
  $

  	
  4.60/yr.

  	
   

  	
  $

  	
  317.00

  	
   

  
														

 

The rent for Parcel “L” will
be $4.60/sq. ft. per year payable in monthly installments of $317.00 and the
term will be incorporated into the lease commencing May 1, 1998.

 

Base rent shall be paid plus
pro-rata share of property taxes per square foot of complex and all metered
utilities including, but not limited to, electric, gas and water.

 

Rate increases for Parcel “L”
will occur annually in years 3, 4 and 5 and
will be tied into the Consumer Price Index as issued by the Bureau of Labor
Statistics. If the Lease option is exercised, years 6 through 10 will be
subject to annual CPI increases.

 

This addition will bring the
new total area under lease to Nuttall Gear, LLC to 123,682 square feet and the
new total month rent shall be $32,107.00.

 

 

This letter shall serve as
the amended lease document for Parcel “L” and except as amended herein, all
other terms and conditions of our lease dated April 01, 1993 shall remain
in full force and effect and govern this transaction.

 

	
  ATTEST:

  	
   

  	
  WHEATFIELD BUSINESS PARK,
  LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Peter Yanson

  Property Manager

  Quadrelle Realty Services –

  Agent for Owner

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TENANT:  NUTTALL GEAR CORPORATION

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  David Zietlow

  General Manager

  	
   

  

 

 

Amendment No. 5 to Lease

 

AMENDMENT
NO. 5, dated as of the 26th day of October 1998, to that certain Lease
dated as of the 1st day of April 1993 (the “Lease”) by and between
Wheatfield Business Park, LLC (formerly Textron Inc., a Delaware corporation,
having an office at 40 Westminster Street, Providence, Rhode Island 02903) (“Lessor”)
and Nuttall Gear,  LLC (formerly Nuttall
Gear Corporation), a Delaware Corporation, P. 0. Box 1032, Niagara Falls, NY 14302 (“Lessee”).

 

WITNESSETH:

 

WHEREAS,
the Lease was amended by Amendment No. I dated as of the 1st day of July, 1993;

 

WHEREAS,
the Lease was amended by Amendment No. 2 dated as of the 21st day of October,
1996;

 

WHEREAS,
the Lease was amended by Amendment No. 3 dated as of the 18th day of February,
1998;

 

WHEREAS,
the Lease was amended by Amendment No. 4 dated as of the 12th day of June, 1998;

 

NOW,
THEREFORE, in consideration of the mutual covenants and agreements contained
herein, the parties hereto agree to further amend the Lease as follows:

 

I.                        Lease an additional 16,000 square feet of
space in Building Number 2 commencing November 1, 1998.

 

This area will be identified
as Parcel “M” as shown on Exhibit A attached and is described as follows:

 

	
  Parcel

  	
   

  	
  Location

  	
   

  	
  Space/ 

  Sq. Ft.

  	
   

  	
  Description

  	
   

  	
  Cost per

  Sq. Ft.

  	
   

  	
  Monthly

  Rent

  	
   

  
	
  “M”

  	
   

  	
  Bldg. No. 2— Col. 44T Due west to 37T then
  due south to 37N, then due east to 42N, then due north to 42P, then east to
  44P.

  	
   

  	
  16,000

  	
   

  	
  Warehouse/Light Manufacturing

  	
   

  	
  $

  	
  2.72/yr.

  	
   

  	
  $

  	
  3,627.00

  	
   

  
														

 

Additional Terms and Conditions

 

Tenant
improvements to area by lessor will he as follows:

 

1.)            Lessor to purchase 300 rectangular fluorescent
tubes (150-watt equivalent) to fit incandescent light fixtures. Lessee shall
install these light fixtures.

 

2.)
Lessor to purchase and install electrical power meter.

 

 

The rent for Parcel “M” will
be $2.72/sq. ft. per year payable in monthly installments of $3,627.00 and the
term will be incorporated into the lease commencing November 1, 1998.

 

Base rent shall he paid by
lessee plus pro-rata share of property taxes per square foot of complex and all
metered utilities including, but not limited to, electric, gas and water.

 

Rate increases for Parcel “M”
will occur annually in years 3, 4 and 5 and will he tied into the
Consumer Price Index as Issued by the Bureau of Labor Statistics, if the Lease
option is exercised, years 6 through 10 will be subject to annual CPI
increases.

 

This addition will bring the
new total area under lease to Nuttall Gear, LLC to 139,682 square feet and the
new total month rent shall be $35,734.00.

 

This letter shall serve as
the amended lease document for Parcel “M” and except as amended herein, all
other terms and conditions of our lease dated April 01, 1993 shall remain
in full force and effect and govern this transaction.

 

 

	
  ATTEST:

  	
   

  	
  WHEATFIELD BUSINESS PARK,
  LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Peter Yanson

  Property Manager

  Quadrelle Realty Services –

  Agent for Owner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TENANT:  NUTTALL GEAR CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  A. Carl Becker

  Vice President of Engineering

  

 

 

Amendment No. 6 to Lease

 

AMENDMENT
NO 6, dated as of the 16th day of March 1999, to that certain Lease dated
as of the 1st day of April 1993 (the “Lease”) by and between Wheatfleld Business
Park, LLC (formerly Textron Inc., a Delaware corporation, having an office at: 40
Westminster Street, Providence, Rhode Island 02903) (“Lessor”) and Nuttall
Gear, LLC (formerly Nuttall Gear Corporation), a Delaware Corporation, P.O. Box
1032, Niagara Falls, NY 14302 (“Lessee”).

 

WITNESSETH:

 

WHEREAS,
the Lease was amended by Amendment No. 1 dated as of the 1st day of July, 1993;

 

WHEREAS,
the Lease was amended by Amendment No. 2 dated as of the 21st day of October,
1996;

 

WHEREAS,
the Lease was amended by Amendment No. 3 dated as of the 18th day of February,
1998;

 

WHEREAS,
the Lease was amended by Amendment No. 4 dated as of the 12th day of June,
1998;

 

WHEREAS,
the Lease was amended by Amendment No. 5 dated
as of the 26th day of October 1998;

 

NOW,
THEREFORE, in consideration of the mutual covenants arid agreements contained
herein, the parties hereto agree to further amend the Lease as follows:

 

I.                                         Vacate the leased area previously described
as Parcels “A”, “B”, “J”, and “L” (collectively 11,763 square feet), and
relocate into the leased area described herein as Parcel “N” and Parcel “O”.

II.                                     Lease that area described as Parcel “N” which
is 10,000 square feet of office space in Building Number 2 commencing May 1, 1999.

III.                                 Lease that area described as Parcel “O” which is 1,340 square feet of
storage space in Building Number 2 commencing May 1, 1999.

IV.                                 Parcel “N” and Parcel “O” will both be subject to an annual
CPI rent increase commencing April 1, 2000. The CPI rent increase will not
exceed 4% per year.

V.                                     Lessee hereby elects to exercise early lease
option, which will commence April 1, 2003 and which will end March 31,
2008.

VI.                                 Commencing April 1, 2003, Lessor will
adjust “Lessee’s Percentage Share”, discussed in Section 7.04 and Exhibit
B of the original Lease document dated April 1, 1993, with regard to
Tenant’s proportionate share of real estate taxes, to reflect the “Total
Rentable Square Footage Area of the Complex” (1,100,000 square feet), as
opposed to the “Total Square Footage” (1,848,923 square feet) currently being
used.

 

 

Parcel “N” as shown on Exhibit
A attached and described as follows:

 

	
  Parcel

  	
   

  	
  Location

  	
   

  	
  Space/ 

  Sq. Ft.

  	
   

  	
  Description

  	
   

  	
  Cost per 

  Sq. Ft.

  	
   

  	
  Monthly 

  Rent

  	
   

  
	
  “N”

  	
   

  	
  Bldg. No. 2— South Mezzanine

  	
   

  	
  10,000

  	
   

  	
  Office

  	
   

  	
  $

  	
  4.34/yr.

  	
   

  	
  $

  	
  3,616.67

  	
   

  
														

 

*The $4 34/yr rate breaks
down as $3 50 per square foot gross, plus $ 84 per square foot which represents
the amortization of the $50,000 00 improvement cost over the remaining initial
term, occupancy beginning 5/1/99, through the last month of the
last year of the option term which is 3/31/2008. Any rate increases will be
applied to the $3.50 per square foot figure only (with regard to Parcel “N”.)

 

Parcel “O”
as shown on Exhibit A attached and described as follows:

 

	
  Parcel

  	
   

  	
  Location

  	
   

  	
  Space/ 

  Sq. Ft.

  	
   

  	
  Description

  	
   

  	
  Cost per 

  Sq. Ft.

  	
   

  	
  Monthly 

  Rent

  	
   

  
	
  “O”

  	
   

  	
  Bldg. No. 2— South Mezzanine

  	
   

  	
  1,340

  	
   

  	
  file storage

  	
   

  	
  $

  	
  2.00/yr.

  	
   

  	
  $

  	
  223.33

  	
   

  
														

 

Additional Terms and Conditions

 

Tenant
improvements to area by lessor will be as follows:

 

1.) Lessor to clean the area.

 

2.)
Lessor to install HVAC system.

 

3.)
Lessor to install 3 doors.

 

4.)
Lessor to make area restrooms functional.

 

The rent for Parcel “N” will
be $4.34/sq. ft. per year payable in monthly installments of $3,616.67 and the
term will be incorporated into the lease commencing-May 1, 1999. The rent for
Parcel “0” will be $2.00/sq. ft.
per year payable in monthly installments of. $223.33 and the term will be
incorporated into the lease commencing May 1, 1999.

 

Lessee shall pay base rent
plus pro-rata share of property taxes per square foot of complex and all
metered utilities including, but not limited to, electric, gas, water and
office air-conditioning. Lessor shall pay for the cost of heat for Parcel “N”
and Parcel “O”.

 

 

Rate increases for Parcel “N”
and Parcel “0” will occur
annually in years 3, 4 and 5 and will be tied into the Consumer Price Index as issued by the Bureau of Labor
Statistics. Since the lease option is being exercised, years 6 through 10 will be
subject to annual CPI increases.

 

This addition will bring the
new total area under lease by Nuttall Gear, LLC to 139,259 square feet and the
new total month rent shall be $35,921 00.

 

This letter shall serve as
the amended lease document for Parcel “N” and Parcel “O” and except as amended
herein, all other terms and conditions of our lease dated April 01, 1993
shall remain in full force and effect and govern this transaction

 

 

	
  ATTEST:

  	
   

  	
  WHEATFIELD BUSINESS PARK,
  LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Peter Yanson

  Property Manager

  Quadrelle Realty Services –

  Agent for Owner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TENANT:  NUTTALL GEAR CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  David Zietlow

  General Manager

  
	
  SUSAN E. SARDINA

  Notary Public, State of New York
No. 01SA5066460

  Qualified in Niagara County

  Commission Expires September 30, 2000

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