Document:

Exhibit
10.26

 

SUBLEASE AGREEMENT

THIS
SUBLEASE AGREEMENT (this “Sublease”),
is entered into as of the 2nd day of June, 2006 (the “Effective Date”) by and
between BROADWING
CORPORATION, a Delaware corporation 
(f/k/a Corvis Corporation and a/k/a Nova Telecommunications, Inc., a
Delaware corporation), having an address of c/o Broadwing Corporation, 1122
Capital of Texas Hwy, South, Austin, Texas 78746 (the “Sublessor”), OSIRIS THERAPEUTICS, INC.,
a Delaware corporation (the “Subtenant”)
having an address prior to the Commencement Date (as defined herein) of this
Sublease of 2001 Aliceanna Street, Baltimore, Maryland 21231-3043, and an
address at the Subleased Premises (as defined herein) after the Commencement
Date hereof.

R E C I T A L S:

A.            Gateway S-8 LLLP, a Maryland limited
liability limited partnership, predecessor in interest to Columbia Gateway
S-28, L.L.C. (“Landlord”), and Sublessor, as
Tenant, entered into that certain Lease Agreement dated August 11, 1998
(as assigned and amended, the “Lease”), a complete copy of which is attached hereto
and incorporated herein as Exhibit A,
consisting of Land (as defined in the Lease) and a Building (as defined in the
Lease) of approximately six-one thousand two hundred three (61,203) rentable
square feet located at 7015 Albert Einstein Drive, Columbia, Maryland (the
“Building”)
(the Land and the Building shall be referred to herein as the “Subleased Premises”); and

B.            Sublessor desires to sublet to Subtenant
the Subleased Premises in accordance with the terms of this Sublease.

A G R E E M E N T:

NOW,
THEREFORE, in consideration of the mutual covenants and conditions contained
herein and other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, Sublessor leases to Subtenant and Subtenant
leases from Sublessor the Subleased Premises, subject to the following terms
and conditions:

1.             Capitalized Terms.  Except as defined herein, capitalized terms
used herein shall bear the same meaning ascribed to them in the Lease.

2.             Subject To Lease.  Except as otherwise provided in this
Sublease, this Sublease is subject to all of the terms and conditions of the
Lease.  Except as otherwise provided in
this Sublease, Subtenant shall assume and perform all of Tenant’s obligations
in the Lease and shall not commit or permit to be committed on the Subleased
Premises any act or omission which shall violate any term or condition of the
Lease.  In the event of the termination
of Sublessor’s interest as Tenant under the Lease as a result of Subtenant’s
failure to perform its obligations under this Sublease, then this Sublease
shall automatically terminate effective as of the termination of the Lease.

3.             Incorporation.  The terms, covenants and conditions of the
Lease are incorporated herein by reference so that, except to the extent that
they are inapplicable or modified by the provisions of this Sublease, each and
every term, covenant and condition of the Lease and binding or inuring to the
benefit the Landlord shall, in respect of this Sublease, bind or inure to the
benefit of Sublessor, with the same force and effect as if such terms,
covenants and conditions were completely set forth in this Sublease, and as if
the words (a) “Landlord,”
“Tenant,”
“Sublessor”
or “Subtenant”
or words of similar import, wherever the same appear in the Lease, were construed
to mean, respectively, “Sublessor” and “Subtenant” in this Sublease; (b) “Leased Premises,”
“premises,”
or words of similar import, wherever the same appear in the Lease, were
construed to mean “Subleased
Premises” in this Sublease; and (c)

 

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“lease” or words of similar
import, wherever the same appear in the Lease, were construed to mean the “Sublease.”  If any of the express provisions of this
Sublease shall conflict with any of the provisions of the Lease incorporated by
reference herein, such conflict shall be resolved in every instance in favor of
the express provisions of this Sublease.

4.             Demise and Term.  Subject to the terms of this Sublease (and in
particular, Sections 5, 6, 7 & 8
below), Sublessor hereby subleases to Subtenant, and Subtenant hereby subleases
from Sublessor, the Subleased Premises. 
The term (the “Term”)
of this Sublease shall commence on August 1, 2006 (the “Commencement Date”) and
expire at midnight on May 31, 2009 (the “Expiration Date”), unless
sooner terminated as herein provided herein or in the Lease.

5.             Vacation of Subleased Premises.  The Subleased Premises shall remain in Sublessor’s
exclusive possession until the earlier to occur of (a) August 31, 2006 or (b) the
date Sublessor has placed its new transmission center, laboratory and
television operation center (collectively, “TOC”) into operation at another location (the “Release Date”).  Sublessor shall undertake reasonable efforts
to expedite the delivery of equipment and commencement of operations of the TOC
prior to August 31, 2006, provided that Sublessor shall remain in exclusive
possession of the Subleased Premises until the Release Date.  Until the Release Date, Sublessor will not do
or fail to do any act that will result in a default under the Lease.  From and after the Effective Date, Subtenant
and its agents and representatives shall be afforded reasonable access to the
Subleased Premises, after, in each instance, receipt of advance written consent
from Sublessor as to the scope and necessity of access, which consent will not
be unreasonably withheld by Sublessor so long as such access by Subtenant is in
conjunction with space planning and architectural or engineering planning;
provided, however, under no circumstances shall any construction be undertaken
by Subtenant nor shall any power or HVAC be disrupted by Subtenant prior to the
Release Date.  Any access requested by Subtenant
hereunder shall be delivered to Sublessor in writing two (2) business days prior
to obtaining said access.  On the release
date, Subtenant shall be in complete possession of the Subleased Premises.  On the Release Date, Sublessor shall pay all
Service Providers (defined below) for services rendered before July 1, 2006 and
all other additional rent due for the period before July 1, 2006.  Until the Release Date Sublessor shall, at its
sole cost, maintain the Subleased Premises in the condition required under the
Lease and shall repair and restore any material damage to the Subleased
Premises caused by the removal of its furniture or equipment.

6.             Rent.  The monthly portion of Basic Annual Rent, all
Common Area Expenses and all other amounts and expenses considered “additional
rent” or otherwise due Landlord or other parties pursuant to the Lease shall
collectively be referred to herein as the “Total Rent”. 
Beginning October 1, 2006, and on the first (1st)
calendar day of every calendar month thereafter during the Term, Subtenant
shall pay to Sublessor without right of offset, the Total Rent due to Landlord
or other third parties under the Lease and, to the extent received from Subtenant,
Sublessor shall remit same to Landlord on or before the date such rental
payments are due.  Sublessor shall not be
in default hereunder for the failure to pay Landlord sums due under the Lease
if said amounts are not received by Sublessor from Subtenant.  Sublessor shall be responsible for the July
portion of the Total Rent.  On or before
August 1, 2006 and September 1, 2006, Subtenant shall pay to Sublessor, without
right of offset, all rent considered “additional rent” pursuant to the Lease
together with all other amounts due under the Lease to Landlord or other third
parties arising after the Commencement Date, which term includes without
limitation, all Common Area Expenses, utilities, taxes and third party service
providers, including but not limited to landscapers, HVAC repair, elevator
service and janitorial services arising after the Commencement Date
(collectively, “Service Providers”).  Prior to August 1, 2006, Subtenant shall
provide Sublessor written evidence that Subtenant has contracted with all
utility and Service Providers with respect to the Subleased Premises and shall
have all utilities and contracts with Service Providers to the Leased Premises
held in the name of Subtenant (reflecting Subtenant to be solely responsible
for the payment for services/utilities rendered said utility or Service
Provider).  From and after August 1,
2006, Subtenant shall also be

 

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responsible for payment of
all utilities and Service Providers to the Leased Premises to the extent said
utilities and services were provided from and after August 1, 2006.  Subtenant shall pay said utilities directly
to the provider of said utilities, and provide a copy of the utility payment to
Sublessee for the month of August on or before the date said payment is
due.  Furthermore, and in addition to the
foregoing payments set forth above, beginning on October 1, 2006 and on the first
calendar day of each calendar month thereafter, Subtenant agrees to pay to Sublessor
without right of offset, the amount of $4,128.01 which amount reflects the
monthly repayment of Basic Annual Rent paid by Sublessor during the months of
August and September (collectively referred to herein as the “Rent Advance”).  In the event this Sublease terminates prior
to the expiration of the Term, Subtenant shall remain obligated to pay Sublessor
the unamortized portion of the Rent Advance. 
Time is of the essence with the payments called for under this Sublease
and Subtenant shall pay Sublessor all penalties and late fees called for under
the Lease (owing to Landlord) in the event any payment required to be paid by Subtenant
is late.  In addition, any payment to Sublessor
due and owing under this Sublease that is late shall bear interest at the rate
provided in the Lease from the date said payments are due until the date such
amounts owing by Subtenant are paid to Sublessor.

7.             Taxes & Common Area Expenses Overages.  Subtenant acknowledges that the Lease
requires the payment of taxes for the full tax year in advance.  Subtenant agrees to pay said taxes for the
year July 1, 2006 through June 30, 2007 in advance by July 15,
2006 and upon receipt of evidence of said payment, Sublessor will promptly
reimburse Subtenant one-twelfth (1/12th) of said taxes.  In the event Sublessor has overpaid any
Common Area Expenses in accordance with the terms of the Lease for the period
of occupancy prior to August 1, 2006, Subtenant shall reimburse Sublessor
(upon reconciliation with Landlord) or Sublessor shall be entitled to receive
directly from Landlord, any overcharges paid by Sublessor to Landlord prior to
August 1, 2006.  If Landlord
provides a credit against future Common Area Expenses charges for amounts
overpaid for the period before August 1, 2006, Sublessor shall be entitled to
charge Subtenant such overage by Sublessor which shall be paid within five (5)
business days of invoice to Subtenant.

8.             Security Deposit.  Simultaneously upon execution of this
Sublease, Subtenant shall deposit with Sublessor an amount equal to one (1)
month’s Total Rent as security (the “Security Deposit”) for the performance by Subtenant
of all of the terms, covenants and conditions of this Sublease on Subtenant’s
part to be performed.  Sublessor shall
not be required to keep the Security Deposit separate from its other
accounts.  The Security Deposit shall be
held by Sublessor without liability for interest.  Sublessor shall have no fiduciary responsibilities
or trust obligations whatsoever with regard to the Security Deposit and shall
not assume the duties of a trustee for the Security Deposit.  Sublessor shall have the right, without
notice to Subtenant, and regardless of the exercise of any other remedy Sublessor
may have by reason of a default, to apply any part of the Security Deposit to
cure any default, beyond any applicable notice and cure period, of Subtenant,
and, if Sublessor does so, Subtenant shall immediately upon demand deposit with
Sublessor the amount so applied so that Sublessor shall have the required
amount of the Security Deposit as indicated above at all times during the Term
of this Sublease.  If Subtenant shall
fail to make such deposit, Sublessor shall have the same remedies for such
failure as Sublessor has for a default in payment of Total Rent.  In the event of an assignment or transfer of
the Sublessor’s leasehold estate under the Lease, (a) Sublessor shall be
obligated to transfer the Security Deposit to the assignee; (b) Sublessor shall
thereupon be automatically released by Subtenant from all liability for the
return of the Security Deposit following the Sublessor’s delivery to Subtenant
of an acknowledgement from such assignee acknowledging such assignee’s receipt
of, and liability for, such Security Deposit; and (c) Subtenant shall look
solely to the assignee for the return of the Security Deposit.  The foregoing provisions of this Section 8 shall apply to every transfer made
of the Security Deposit to a new assignee of Sublessor’s interest in the Lease.

 

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9.             No Breach of Lease.  Subtenant shall not do or permit to be done
any act or thing which may constitute a breach or violation of any term,
covenant or condition of the Lease, whether such act or thing is permitted
under the provisions of this Sublease.

10.           Indemnity.  From and after the Effective Date, Subtenant
shall indemnify, defend and hold harmless Sublessor and Landlord from and
against any and all losses, costs, damages, expenses and liabilities including,
without limitation, attorneys’ fees, court costs and disbursements, liquidated
damages penalties which Sublessor or Landlord may incur or pay out by reason of
(a) any accidents, damages or injuries to persons or property occurring
in, on or about the Subleased Premises; (b) any breach or default
hereunder on Subtenant’s part; (c) any work done in or to the Subleased
Premises; (d) any act, omission or negligence on the part of Subtenant
and/or its officers, employees, agents, customers and/or invitees, or any
person claiming by, through or under Subtenant; (e) any act, omission or
negligence on the part of Sublessor and/or its officers, employees, agents,
customers and/or invitees with respect to the Leased Premises.  The provisions of this Section 10
shall survive termination or expiration of this Sublease.

11.           Waiver & Insurance.  Subtenant acknowledges that any waiver by Sublessor
of any obligation by Subtenant under the Lease shall not constitute a waiver by
Sublessor to require compliance of that obligation in the future.  Subtenant agrees to maintain the insurance
required by Tenant under the Lease and shall provide Sublessor, within ten (10)
calendar days of the Effective Date, with a copy of the insurance policy along
with an endorsement to said insurance policy naming Landlord and Sublessor as
the additional insured.  Such insurance
policy shall provide Sublessor with thirty (30) days notice in advance of any
termination of said insurance.

12.           Use.   Subtenant shall use and occupy the Subleased
Premises consistent with the covenants and restrictions (“Restrictions”)
encumbering the Leased Premises.  Subtenant
acknowledges that Subtenant has reviewed a title report on the Leased Premises
and is comfortable that Subtenant’s intended use is consistent and in
compliance with the Restrictions.  Subtenant
further acknowledges that Sublessor has not reviewed said Restrictions and
makes no representation or warranty that the intended use by Subtenant is in
conformance with the Restrictions.

13.           Condition of Subleased Premises &
Personal Property.  Subtenant
is leasing the Subleased Premises as of the Effective Date and as of the
Release Date, in its “AS IS,” “WHERE-IS”
CONDITION, with all faults without representation or warranty
by Sublessor, express or implied, including without limitation habitability,
and Sublessor is not required to perform any work or expend any monies in
connection with this Sublease, other than delivering the Subleased Premises in
broom clean condition.  To the best of
Sublessor’s knowledge, Sublessor has not received any notice of violation of
any applicable legal requirement or any covenant or restriction applicable to
the Subleased Premises.  In making and
executing this Sublease, Subtenant has relied solely on such investigation,
examinations and inspections as Subtenant has chosen to make or has made.  Subtenant acknowledges that Sublessor has
afforded Subtenant the opportunity for full and complete investigations,
examinations, and inspections and that Subtenant has not relied upon, and Sublessor
has not made, any representation or warranty (express or implied) regarding the
condition of the Subleased Premises or the Building or that said Building will
be in any condition for use by Subtenant. 
In addition, the parties hereto agree that the personal property
described on Exhibit B
attached hereto and incorporated herein reflects a list of personal property
(the “Personal Property”),
which shall be conveyed and delivered by Sublessor on the Release Date,
provided however, that in no event will Sublessor guaranty the condition or
availability of the Personal Property on the Commencement Date nor will Sublessor
be in default hereunder in the event the Personal Property is missing or
damaged prior to the Release Date other than for the Personal Property listed
on Exhibit C attached hereto
and incorporated herein which Sublessor shall agree to ensure possession to Subtenant
on the Release Date.  If said exhibits
are not attached to the Sublease as of the Effective Date, the parties hereto
shall cooperate in good faith to agree on the exhibits within ten (10)

 

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business days.  The Personal Property shall be conveyed to Subtenant
in its “AS IS,” “WHERE-IS” CONDITION, with all
faults without representation or warranty by Sublessor, express or implied, as
of the Release Date and Sublessor is not required to perform any work or expend
any monies in connection with the upkeep and maintenance of the Personal Property.  At the conclusion of the Term, the Personal
Property will remain the property of Subtenant.

14.           Consent & Approvals.  In any instance when Sublessor’s consent or
approval is required under this Sublease, Sublessor’s refusal to consent to or
approve any matter or thing shall be deemed reasonable if, inter alia, such
consent or approval has not been obtained from Landlord, and if Landlord
consents or approves such matter or thing, Sublessor’s consent or approval
shall not be required.  Sublessor shall
have no obligation to take any action to compel Landlord’s consent to any
matter or thing under the Lease or as to this Sublease.  In the event that Subtenant shall seek the
approval by or consent of Sublessor, and Sublessor shall fail or refuse to give
such consent or approval, Subtenant shall not be entitled to any damages for
any withholding or delay of such approval or consent by Sublessor, it being
intended that Subtenant’s sole remedy shall be an action for injunction or
specific performance which shall be available only in those cases where Sublessor
shall have expressly agreed in writing not to unreasonably withhold or delay
its consent.

15.           Notices.  Any notice, demand, request, consent,
approval or communication that either party desires or is required to give to
the other party or any other person shall be deemed to be delivered if
delivered in writing, delivered by a nationally recognized overnight delivery
service, receipt signature required, served personally and emailed to
susan.ellis@broadwing.com and boots.bagby@broadwing.com  or sent by prepaid, first-class
mail.  Any notice, demand, request,
consent, approval, or communication that either party desires or is required to
give to the other party shall be addressed to the other party at the address
set forth in the introductory paragraph of this Sublease.  Either party may change its address by
notifying the other party of the change of address.  Notice shall be deemed communicated upon
delivery as provided in this paragraph.

16.           Termination of Lease.  If for any reason the Lease shall terminate
prior to the Expiration Date of this Sublease (including as a result of any
voluntary termination permitted under the Lease), then this Sublease shall
thereupon be terminated and Sublessor shall not be liable to Subtenant by
reason thereof, provided, however, Subtenant shall remain responsible for all
unpaid amounts due under this Sublease together with any obligations which
expressly survive the termination of the Lease, including without limitation, the
obligations set forth in this Sublease or Section 7(c) of the Lease.  In the event Subtenant becomes a  holdover tenant hereunder, Subtenant shall be
obligated to pay Sublessor two hundred percent (200%) of Total Rent per month
during any holdover period and Subtenant shall be deemed a tenant at sufferance
during any  holdover period.  The terms of this Section 16 shall survive
termination of this Sublease.

17.           Estoppel Certificates.  Either party shall, within seven (7) business
days after each and every request by the other party, execute, acknowledge and
deliver to Subtenant, Sublessor, Landlord or such other party as Sublessor
reasonably requests, a statement in writing (a) certifying that this Sublease
is unmodified and in full force and effect (or if there have been modifications
that the same is in full force and effect as modified, and stating the
modifications); (b) specifying the dates to which Total Rent has been paid; (c)
stating whether, to the best knowledge of the requested party, the requesting
party is in default in performance or observance of its obligations under this
Sublease, and, if so, specifying each such default; (d) stating whether, to the
best knowledge of the requested party any event has occurred which with the
giving of notice or passage of time, or both, would constitute a default by the
requesting party under this Sublease, and, if so, specifying each such event;
and (e) stating any other pertinent information reasonably requested by the
requesting party.

 

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18.           Right to Cure Subtenant’s
Defaults.  If Subtenant
shall at any time fail to make any payment or perform any other obligation of Subtenant
hereunder, Sublessor shall have the right, but not the obligation, after the
lesser of five (5) business days notice to Subtenant or the time within which Sublessor
may act under the Lease, or without notice to Subtenant in the case of any
emergency, and without waiving or releasing Subtenant from any obligations of Subtenant
hereunder, to make such payment or perform such other obligation of Subtenant
in such manner and to such extent as Sublessor shall deem necessary, and in
exercising any such right, to pay any incidental costs and expenses, employ
attorneys, and incur and pay all attorney’s fees, costs and expenses.  Subtenant shall pay to Sublessor upon demand
all sums so paid by Sublessor and all incidental costs and expenses of Sublessor
in connection therewith, together with interest thereon at the Prime Rate of
interest plus two (2) percent or the then maximum lawful interest rate,
whichever shall be more, from the date of the making of such expenditures.  For purposes hereof, “Prime Rate” shall mean the
rate announced from time to time by Citibank, N.A. as its prime lending rate.

19.           Brokerage.  Sublessor represents and warrants to the
other party that no broker or other person had any party, or was instrumental
in any way, in bringing about this Sublease, other than CB Richard Ellis (“CB Richard”).  Subtenant represents and warrants to the
other party that no broker or other person had any party, or was instrumental
in any way, in bringing about this Sublease, other than The Staubach Company (“Staubach”) (CB
Richard and Staubach are collectively referred to herein as the “Brokers”).  Each party will cooperate to limit the amount
of commissions charged by the Broker’s to not exceed an amount that would be
charged in one transaction for the term contractually obligating Subtenant with
Sublessor and Landlord.  Each party
agrees to indemnify, defend and hold harmless, the other party from and against
any claims made by any broker (other than the Brokers) or other person for a
brokerage commission, finder’s fee, or similar compensation, by reason of or in
connection with this Sublease, and any loss, liability, damage, cost and
expense (including, without limitation, reasonable attorneys’ fees) which may
be incurred by the other party in connection with such claims if such other
broker or other person claims to have had dealings with either party.  Sublessor and Sublessee agree to pay the
applicable Brokers any commission which may be due in connection with this
Sublease pursuant to a separate agreement(s).

20.           Remedies.  In addition to its other remedies provided to
each party under the Lease and in this Sublease, each party is entitled to all
other remedies provided at law or in equity, including without limitation, to
the extent permitted by applicable law, injunctive relief in case of the
violation, or attempted or threatened violation, of any of the terms of this
Sublease, or to a decree compelling specific performance of the terms of this
Sublease.  No right or remedy of either
party under this Sublease is intended to be exclusive of any other right or
remedy.  Each right and remedy of each
party is cumulative and may be exercised in addition to all other rights or
remedies under the Lease, this Sublease, or now or hereafter existing at law,
in equity or by statute.  Upon an event
of default by Subtenant hereunder, Sublessor shall be entitled to terminate
this Sublease upon written notice to Subtenant and possession of the Subleased
Premises shall be tendered immediately to Sublessor.  The terms of this Section 21 shall survive
termination or expiration of the Lease.

21.           Successors & Assigns.  The provisions of this Sublease, except as
herein otherwise specifically provided, shall extend to, bind and inure to the
benefit of the parties hereto and their respective personal representatives,
heirs, successors and permitted assigns. 
Notwithstanding the foregoing, no Assignment or assignment of any or all
of Subtenant’s interests under this Sublease shall be permitted without the
prior written consent of Sublessor, which consent may be withheld in Sublessor’s
sole and absolute discretion.

22.           Interpretation.  If any provision of this Sublease or
application thereof to any person or circumstance shall, for any reason and to
any extent, be invalid or unenforceable, the remainder of this

 

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Sublease and the application
of that provision to other persons or circumstances shall not be affected but
rather shall be enforced to the extent permitted by law.  The table of contents, captions, headings and
titles, if any, in this Sublease are solely for convenience of reference and
shall be construed without regard to any presumption or other rule requiring
construction against the party causing this Sublease to be drafted.  If any words or phrases in this Sublease
shall be construed as if the words or phrases so stricken out or otherwise
eliminated were never included in this Sublease and no implication or inference
shall be drawn from the fact that said words or phrases were so stricken out or
otherwise eliminated.  Each covenant,
agreement, obligation or other provision of this Sublease shall be deemed and
construed as a separate and independent covenant of the party bound by,
undertaking or making same, not dependent on any other provision of this
Sublease, unless otherwise expressly provided. 
All terms and words used in this Sublease, regardless of the number or
gender, in which they are used, shall be deemed to include any other number and
other gender as the context may require. 
The word “person”
as used in this Sublease shall mean a natural person or persons, a partnership,
a corporation or any other form of business or legal association or entity.

23.           Complete Agreement.  There are no representations, agreements,
arrangements or understandings, oral or written, between the parties relating
to the subject matter of this Sublease which are not fully expressed in this
Sublease.  This Sublease cannot be
changed or terminated orally or in any manner other than by a written agreement
executed by both parties.  This Sublease
may be executed in one or more counterparts, each of which will for all
purposes be deemed to be an original and all of which will constitute the same
instrument.

24.           Performance by Sublessor.  Any obligation of Sublessor which is
contained in this Sublease by the incorporation by reference of the provisions
of the Lease may be observed or performed by Sublessor using reasonable efforts
to cause the Landlord under the Lease to observe and/or perform the same (which
obligations include, without limitation, services to be provided by Landlord and
restoration of damaged property), and Sublessor shall have a reasonable time to
enforce its rights to cause such observance or performance.  Subtenant shall not in any event have any
rights in respect of the Subleased Premises greater than Sublessor’s right with
respect thereto under the Lease, and, notwithstanding any provision to the
contrary, as to obligations contained in this Sublease by the incorporation by
reference of the provisions of the Lease, Sublessor shall not be required to
make any payment or perform any obligation, and Sublessor shall have no
liability to Subtenant for any matter whatsoever, except for Sublessor’s
obligation to pay the Total Rent (to the extent paid to Sublessor by Sublessee
and not paid by Sublessee to Landlord directly) and obligation to use
reasonable efforts, upon request of Subtenant, to cause Landlord to observe
and/or perform Landlord’s obligations under the Lease.  Sublessor shall not be responsible for any
failure or interruption, for any reason whatsoever, of the services of
facilities that may be appurtenant to or supplied at the Building of which the
Subleased Premises are a part or of the air conditioning, electricity, water,
elevator service and cleaning service, if any; and no failure to furnish, or
interruption of any such services or facilities unless caused by Sublessor
shall give rise to any (a) abatement, diminution or reduction of Subtenant’s
obligations under this Sublease; (b) constructive eviction, whether in whole or
in part, or (c) liability on the part of Sublessor.  Notwithstanding any provision to the
contrary, as to obligations contained in this Sublease by the incorporation by
reference of the Lease, Subtenant is taking the Subleased Premises “AS-IS” without any
warranties, representations or obligations on the part of Sublessor, or any
other party, to perform any alterations, repairs, work or services in or to the
Subleased Premises, and Sublessor shall not have any obligation to furnish,
render or supply any work, labor, services, material, fixtures, or equipment to
make the Subleased Premises ready for occupancy.

25.           Preferred Provider.  Subject to Sublessor’s price, quality and
availability, Subtenant hereby agrees to use Sublessor as its preferred
provider of telecommunications services. 
For purposes hereof, the term “telecommunications
services” shall mean media, data and voice.  This provision requires

 

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that Subtenant will provide Sublessor
with a “first and last look” opportunity on each of Sublessor’s potential
purchase of telecommunication services during the Term and subsequent to the
Term so long as Subtenant occupies the Leased Premises.  That is, Sublessor shall be entitled to match
any bona fide offer received by Subtenant for telecommunication services.

26.           Return of Documents & Records.  As of the Commencement Date, Subtenant agrees
to secure and promptly notify Sublessor of any records or documentation of Sublessor’s
found in and around the Subleased Premises or the Personal Property.  Such notification shall be directed to the
following:

Broadwing Records
Management Division

1122 Capital of Texas Highway, South

Austin, Texas 78746

Attn: Legal Department

27.           Time of the Essence.  Time is of the essence of each provision of
this Sublease.

28.           No Construction Against Drafting Party.  The rule of construction that ambiguities are
resolved against the drafting party shall not apply to this Sublease.

29.           Governing Law.  The terms of this Sublease shall be governed
in accordance with the laws of the State of Maryland.

30.           Limitation of Sublessor Liability.  Sublessor shall not be liable for, and Subtenant
hereby waives the right to seek any consequential, punitive, speculative or
business interruption damages incurred by Subtenant due to Sublessor’s default
under this Sublease or under the Lease Agreement. Any recovery against Sublessor
shall be limited to the Sublessor’s leasehold estate in the Leased Premises.

31.           Jury Waiver.  TO THE MAXIMUM EXTENT ALLOWABLE BY LAW, BOTH
PARTIES HERETO WAIVE THE RIGHT TO SEEK A JURY IN ANY TRIAL, ACTION, PROCEEDING
AND/OR COUNTERCLAIM BROUGHT BY EITHER PARTY HERETO INVOLVING THE LEASE OR THE
MATTERS SET FORTH HEREIN.

32.           Benefits and Bargain.  The parties to this Sublease acknowledge that
each has fully negotiated the terms of this Sublease and that this Sublease
contains all of the benefits and bargains of the agreements reached between the
parties and that this Sublease comprises all of the agreements reached between
the parties hereto as to the subject matters contained herein.

33.           Termination Rights Under
COPT-Sublease Lease Agreement. 
Subtenant agrees to deliver to Sublessor (simultaneously upon delivery
to Landlord) any waiver of termination rights held by Sublessee under that
certain COPT-Sublease Lease Agreement, NonDisturbance and Attornment Agreement,
and provide Sublessor with copies of any amendments or modifications to the
COPT-Sublease Lease Agreement that affect said termination rights (with
Sublessor having approval not to be unreasonably withheld by Sublessor).

[SIGNATURE
PAGES FOLLOW]

 

8

 

IN
WITNESS WHEREOF, Sublessor and Subtenant have hereunto executed this Sublease
as of the Effective Date.

	
  SUBLESSOR:

  	
  BROADWING CORPORATION, a Delaware
  corporation (f/k/a Corvis Corporation) 
  

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name: 

  	
   

  
	
   

  	
  Title: 

  	
   

  
	
   

  	
  Date:

  	
   

  

 

 

 

 

	
  SUBTENANT:

  	
  OSIRIS THERAPEUTICS, INC. a Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
  Date:

  	
   

  

 

 

 

 

EXHIBIT A

 

Lease Agreement

 

A-1

 

EXHIBIT B

 

Personal Property
Inventory

 

B-1

 

 

EXHIBIT C

 

Material Personal
Inventory

 

C-1Exhibit 10.27

 

 

AGREEMENT OF LEASE

by and between

 

COLUMBIA GATEWAY S-28, L.L.C.

and

 

OSIRIS THERAPEUTICS, INC.

 

(7015 Albert Einstein Drive, Columbia, Maryland 21044)

 

 

AGREEMENT OF LEASE

COLUMBIA GATEWAY S-28, L.L.C.

OSIRIS THERAPEUTICS, INC.

 

TABLE OF CONTENTS

 

 

Table
of Contents

	
   

  	
   

  	
   

  
	
  1.

  	
  Definitions and Attachments

  	
   

  
	
  2.

  	
  Demise

  	
   

  
	
  3.

  	
  Term

  	
   

  
	
  4.

  	
  Letter of Credit

  	
   

  
	
  5.

  	
  Use

  	
   

  
	
  6.

  	
  Rent

  	
   

  
	
  7.

  	
  Requirements of Applicable Law

  	
   

  
	
  8.

  	
  Certificate of Occupancy

  	
   

  
	
  9.

  	
  Contest-Statute, Ordinance, Etc.

  	
   

  
	
  10.

  	
  Tenant’s Improvements

  	
   

  
	
  11.

  	
  Repairs and Maintenance

  	
   

  
	
  12.

  	
  Conduct on Premises

  	
   

  
	
  13.

  	
  Insurance

  	
   

  
	
  14.

  	
  Rules and Regulations

  	
   

  
	
  15.

  	
  Mechanics’ Liens

  	
   

  
	
  16.

  	
  Tenant’s Failure to Repair

  	
   

  
	
  17.

  	
  Property — Loss, Damage

  	
   

  
	
  18.

  	
  Destruction — Fire or Other Casualty

  	
   

  
	
  19.

  	
  Eminent Domain

  	
   

  
	
  20.

  	
  Assignment

  	
   

  
	
  21.

  	
  Default; Remedies; Bankruptcy of Tenant

  	
   

  
	
  22.

  	
  Damages

  	
   

  
	
  23.

  	
  Services and Utilities

  	
   

  
	
  24.

  	
  Electric Current

  	
   

  
	
  25.

  	
  Telephone and Telecommunications

  	
   

  
	
  26.

  	
  Intentionally Left Blank

  	
   

  
	
  27.

  	
  Inability to Perform

  	
   

  
	
  28.

  	
  No Waivers

  	
   

  
	
  29.

  	
  Access to Premises and Change in Services

  	
   

  
	
  30.

  	
  Estoppel Certificates

  	
   

  
	
  31.

  	
  Subordination

  	
   

  
	
  32.

  	
  Attornment

  	
   

  
	
  33.

  	
  Notices

  	
   

  
	
  34.

  	
  Intentionally Left Blank

  	
   

  
	
  35.

  	
  Tenant’s Space

  	
   

  
	
  36.

  	
  Quiet Enjoyment

  	
   

  
	
  37.

  	
  Vacation of Premises

  	
   

  
	
  38.

  	
  Members’ Liability

  	
   

  
	
  39.

  	
  Separability

  	
   

  
	
  40.

  	
  Indemnification

  	
   

  
	
  41.

  	
  Captions

  	
   

  
	
  42.

  	
  Brokers

  	
   

  
	
  43.

  	
  Recordation

  	
   

  
	
  44.

  	
  Successors and Assigns

  	
   

  
	
  45.

  	
  Integration of Agreements

  	
   

  
	
  46.

  	
  Hazardous Material; Indemnity

  	
   

  
	
  47.

  	
  Americans With Disabilities Act

  	
   

  
	
  48.

  	
  Several Liability

  	
   

  
	
  49.

  	
  Financial Statements

  	
   

  
	
  50.

  	
  Definition of Day and Days

  	
   

  
	
  51.

  	
  Tenant’s Anti-Terrorism Representation

  	
   

  

 

 

 

	
  52.

  	
  Exterior Signage

  	
   

  
	
  53.

  	
  Telecommunications Equipment

  	
   

  
	
  54.

  	
  Parking

  	
   

  
	
  55.

  	
  Tenant’s Termination Right

  	
   

  

 

 

ii

 

AGREEMENT
OF LEASE

 

                THIS
AGREEMENT OF LEASE (this “Lease”) made this ______________ day of
______________________, 2006, by and between COLUMBIA
GATEWAY S-28, L.L.C. (the “Landlord”) and OSIRIS THERAPEUTICS, INC. (the “Tenant”), witnesseth that the
parties hereby agree as follows:

 

 

BACKGROUND

 

                Landlord
leased the Premises (as herein defined) to Broadwing Corporation (“Broadwing”)
pursuant to a lease which is scheduled to expire on May 31, 2009 (the “Broadwing
Lease”). Broadwing has determined that it will not exercise its renewal rights under
the Broadwing Lease. On or before the date hereof, Tenant entered into a
sublease for the Premises with Broadwing (the “Broadwing Sublease”) for the
remainder of the term of the Broadwing Lease.  As a condition to entering into the Broadwing
Sublease, Tenant requested Landlord and Landlord agreed to enter into this
direct lease between Landlord and Tenant which is intended to commence immediately
upon the termination or sooner expiration of the Broadwing Lease, on the terms
and conditions set forth herein.

 

 

W
I T N E S S E T H:

 

                THAT
FOR AND IN CONSIDERATION of the mutual covenants and agreements herein
contained, the parties hereto do hereby covenant and agree as follows:

 

1.             Definitions
and Attachments.

 

                1.1           Certain Defined Terms.

 

                1.1.1        “Building” means the office building
known as located at 7015 Albert Einstein Drive, Columbia, Maryland 21044, which
is located within Howard County, Maryland.

 

                1.1.2        “Rentable Area of the Building” and “Rentable
Area of the Premises” mean 61,203 rentable square feet, subject to adjustment
in accordance with BOMA standards.

 

                1.1.3        “Premises” means the entire Building
located on the described schedule attached hereto as Exhibit “A” and made a
part hereof.

 

                1.1.4        “Initial Term” means a period of seven
(7) years and two (2) months, years plus the part of a month mentioned in Section
3.1, commenc­ing and ending as provided in Section 3.1, or such longer period if the
Commencement Date is accelerated as set forth in Section 3.1.

 

                1.1.5        “Renewal Term” means two (2) additional
periods of five (5) years each, commencing and ending as provided in Section
3.2.

 

                1.1.6        “Annual Base Rent” means the amount set
forth on the following schedule:

 

	
  Rental Year

  	
   

  	
  Annual Base Rent

  (or pro rata share thereof)

  	
   

  	
  Monthly Installments of

  Annual Base Rent

  	
   

  
	
  6/1/09—5/31/10

  	
   

  	
  $1,040,451.00

  	
   

  	
  $86,704.25

  	
   

  
	
  6/1/10—5/31/11

  	
   

  	
  $1,066,462.28

  	
   

  	
  $88,871.86

  	
   

  
	
  6/1/11—5/31/12

  	
   

  	
  $1,093,123.83

  	
   

  	
  $91,093.65

  	
   

  
	
  6/1/12—5/31/13

  	
   

  	
  $1,120,451.93

  	
   

  	
  $93,370.99

  	
   

  
	
  6/1/13—5/31/14

  	
   

  	
  $1,148,463.23

  	
   

  	
  $95,705.27

  	
   

  
	
  6/1/14—5/31/15

  	
   

  	
  $1,177,174.81

  	
   

  	
  $98,097.90

  	
   

  
	
  6/1/15—5/31/16

  	
   

  	
  $1,206,604.18

  	
   

  	
  $100,550.35

  	
   

  
	
  6/1/16—5/31/16

  	
   

  	
  $1,236,769.28

  	
   

  	
  $103,064.11

  	
   

  
	
  6/1/16—6/30/16

  	
   

  	
  $1,267,688.51

  	
   

  	
  $105,640.71

  	
   

  

 

1

 

In the event that the Lease commences prior
to June 1, 2009 pursuant to Section 3.1, Annual Base Rent shall be paid in
accordance with the following schedule:

 

	
  Rental Year

  	
   

  	
  Annual Base Rent

  (or pro rata share thereof)

  	
   

  	
  Monthly Installments of

  Annual Base Rent

  	
   

  
	
  8/1/06—7/31/07

  	
   

  	
  $792,578.85

  	
   

  	
  $66,048.23

  	
   

  
	
  8/1/07—7/31/08

  	
   

  	
  $816,356.21

  	
   

  	
  $68,029.68

  	
   

  
	
  8/1/08—7/31/09

  	
   

  	
  $840,846.89

  	
   

  	
  $70,070.57

  	
   

  

 

 

                1.1.7        “Initial Letter of Credit Amount” means
the amount of $130,000.

 

                1.1.8        “Full Letter of Credit Amount” means the
amount of $591,000. See Section 4.

 

                1.1.9        “Tenant Notice Address” means

                   Osiris Therapeutics, Inc.

                   2001 Aliceanna Street

                   Baltimore, Maryland  21231

                   Attn: Randall Mills, PHD

                   Telephone (410) 522-5005

                   Telecopier (410) 563-0794

 

                1.1.10      “Allowance” means the sum of $795,639.00.
See Section 35.

 

                1.1.11      “Broker” means The Staubach Company.

 

1.2           Additional Defined Terms.

 

                The
following additional terms are defined in the places in this Lease noted below:

 

	
  Term

  	
   

  	
  Section

  	
   

  
	
  “ADA”

  	
   

  	
  47

  	
   

  
	
  “Applicable Laws”

  	
   

  	
  7

  	
   

  
	
  “Approved Plans and Specifications”

  	
   

  	
  35

  	
   

  
	
  “Building Expenses”

  	
   

  	
  6.2.2

  	
   

  
	
  “Commencement Date”

  	
   

  	
  3.1

  	
   

  
	
  “Common Areas”

  	
   

  	
  6.2.4

  	
   

  
	
  “Cost of Building Expenses Per Square Foot”

  	
   

  	
  6.4.1

  	
   

  
	
  “Cost of Taxes Per Square Foot”

  	
   

  	
  6.3.1

  	
   

  
	
  “Default Rate”

  	
   

  	
  6.6

  	
   

  
	
  “Hazardous Material”

  	
   

  	
  46

  	
   

  
	
  “HVAC”

  	
   

  	
  23

  	
   

  
	
  “Landlord’s Notice”

  	
   

  	
  3.2

  	
   

  
	
  “Lease Year”

  	
   

  	
  6.2.5

  	
   

  
	
  “Mortgagee”

  	
   

  	
  31

  	
   

  
	
  “Normal Business Hours”

  	
   

  	
  23

  	
   

  
	
  “Prevailing Market Rate”

  	
   

  	
  3.2

  	
   

  
	
  “Property”

  	
   

  	
  6.2.1

  	
   

  
	
  “Substantially Complete”

  	
   

  	
  3.2

  	
   

  
	
  “Successor”

  	
   

  	
  32

  	
   

  
	
  “Taxes”

  	
   

  	
  6.2.3

  	
   

  
	
  “Tenant Improvements”

  	
   

  	
  35

  	
   

  
	
  “Term”

  	
   

  	
  3.4

  	
   

  

 

1.3           Attachments.

 

                The
following documents are attached hereto, and such documents, as well as all
drawings and documents prepared pursuant thereto, shall be deemed to be a part
hereof:

 

2

 

                                                Exhibit “A”            — Floor Plan

                                                Exhibit “B”            — Rules and Regulations

                                                Exhibit “C”            — Intentionally Left Blank

                                                Exhibit “D”            — Estoppel Certificate

                                                Exhibit “E”             — Subordination, Attornment and
Non-Disturbance Agreement

                                                Exhibit “F”             — Commencement Date Agreement

 

2.             Demise. Landlord
hereby leases unto Tenant, and Tenant does hereby rent from Landlord the
Premises. In addition thereto, Tenant shall have the right to use, on a
non-exclusive basis, and in common with the other tenants of the Building (if
any), the Common Areas of the Building (as that term is defined in Section
6.2.4 hereof).

 

3.             Term.

 

                3.1           Commencement Date and Term. 
This Lease shall commence on June 1, 2009 (the “Commencement Date”) and shall
be for the Initial Term, expiring on July 31, 2016. Notwithstanding anything
herein to the contrary, if Landlord terminates its lease of the Premises with Broadwing
Corporation (the “Broadwing Lease”) at anytime prior to June 1, 2009, the
Commencement Date under this Lease shall automatically be accelerated to be the
date which the first day immediately following the termination of the Broadwing
Lease.  In the event that the
Commencement Date is accelerated to a date prior to June 1, 2009, within
fifteen (15) days after request from Landlord, Tenant shall execute and deliver
the Commencement Date Agreement in substantially the form attached hereto as Exhibit
“F”.

 

                3.2           Option to Extend Lease Term. Provided
Tenant is not in default of any term, covenant or condition of this Lease,
Tenant shall have the option to extend the Initial Term of this Lease for two
(2) additional periods of five (5) years each (the “First Renewal Term”, the “Second
Renewal Term” or collectively the “Renewal Terms”) to commence immediately upon
the expiration of the Initial Term or the First Renewal Term, as applicable.

 

                Tenant’s
rental of the Premises during the First Renewal Term and Second Renewal Term
shall be upon the same terms, covenants and conditions contained in this Lease,
except that Tenant shall pay to Landlord as Base Rent the amount equal to the “Prevailing
Market Rate” for the Premises for the First Renewal Term or the Second Renewal
Term, as applicable, as hereinafter defined (including annual adjustments). For
purposes of this Section 3.2, the term “Prevailing Market Rate” shall
mean the then prevailing market rate being charged for comparable space in
comparable buildings within a ten (10) mile radius of the Premises, with
consideration given for construction allowances, commissions, free rent, and
other concessions or premiums. In order to exercise its option granted herein,
Tenant shall notify Landlord in writing of its intent to renew not less than two
hundred seventy (270) days prior to the expiration of the Initial Term or the
First Renewal Term, as applicable. Within thirty (30) days following the
exercise by Tenant of its option to extend the Lease for the First Renewal Term
or the Second Renewal Term, as applicable, Landlord shall notify Tenant in
writing of its determination of the Prevailing Market Rate for the First
Renewal Term or the Second Renewal Term, as applicable, as reasonably
determined by Landlord (“Landlord’s Notice”). Within ten (10) days after
receipt of Landlord’s Notice, Tenant shall notify Landlord in writing of Tenant’s
acceptance or rejection of such rate. If Tenant shall accept such Prevailing
Market Rate, Landlord and Tenant shall enter into an amendment to this Lease
acknowledging such renewal and setting forth any terms at variance with the
terms of this Lease. If within the ten (10) day period, Tenant shall reject
such Prevailing Market Rate as determined by Landlord for the First Renewal
Term or the Second Renewal Term, as applicable, then within twenty (20) days
thereafter, Landlord and Tenant shall meet at a mutually acceptable time and
place and shall use their reasonable efforts to agree upon the Prevailing
Market Rate. If Landlord and Tenant shall fail to agree upon such Prevailing
Market Rate within the twenty (20) day period, Tenant, at Tenant’s sole option,
shall have the right to either (i) revoke its election notice on five (5) days’
advance written notice to Landlord or (ii) Landlord and Tenant shall each
appoint an independent commercial leasing broker licensed in the Maryland area
within the next ten (10) days (the “Brokers”). Such Brokers shall deliver their
respective estimates of the Prevailing Market Rate within ten (10) days after
being appointed. If the estimates of the Prevailing Market Rate as quoted by
the Brokers are within ten percent (10%) of each other, the Prevailing Market
Rate shall be deemed to be the average of the

 

 

3

 

estimates presented by the Brokers. If the
estimates of the Prevailing Market Rate as quoted by the Brokers differ by more
than ten percent (10%), then Landlord and Tenant shall jointly appoint a third
independent commercial leasing broker licensed in the Maryland area within ten
(10) days after the receipt of the initial brokers’ estimates (the “Third
Broker”) who shall deliver its estimate of the Prevailing Market Rate within
ten (10) days after being appointed and such estimate shall be deemed to be the
Prevailing Market Rate. Tenant shall notify Landlord within ten (10) days after
receipt of the estimate of the Prevailing Market Rate (whether as resulting
from the average of the Brokers or from the Third Broker, as applicable),
whether Tenant shall accept such Prevailing Market Rate, whereupon Landlord and
Tenant shall enter into an amendment to this Lease acknowledging such renewal
and setting forth any terms at variance with the terms of this Lease. If (i)
Tenant shall fail to respond to Landlord’s Notice as provided above, (ii) Tenant
shall fail to deliver the requisite notice exercising its option to extend by
the date prescribed above, (iii) Tenant does not respond within ten (10) days
following receipt of Landlord’s Notice or (iv) Tenant does not accept the
Prevailing Market Rate within ten (10) days following Landlord’s notification
of the Prevailing Market Rate, as determined either by the average of the
Brokers or from the Third Broker, as applicable, then Tenant’s option to extend
this Lease for the First Renewal Term or the Second Renewal Term, as the case
may be, shall be void and inoperable.  Landlord and Tenant shall each pay the fee of
the broker designated by them originally and shall split the fees of the Third
Broker.

 

3.3           Definition of “Term”. As used herein, the word “Term”
shall refer to the Initial Term and the Renewal Terms, if applicable.

 

4.             Letter
of Credit .

 

Within five (5) days after
the execution of this Lease, Tenant shall deliver to Landlord an unconditional
and irrevocable letter of credit (the “Letter of Credit”) from an area banking
institution approved by Landlord in the Initial Letter of Credit Amount to be
held by Landlord as a guaranty for the payment and performance by Tenant of all
covenants and obligations of Tenant as set forth in this Lease. If Tenant
waives its rights to terminate this Lease pursuant to Section 55 below,
Tenant shall increase the Letter of Credit to the Full Letter of Credit Amount.
The Letter of Credit shall contain terms whereby it can be drawn on by Landlord
at sight on any date during the Term of this Lease on which issuer shall
receive from Landlord a certification signed by Landlord stating that there is
an Event of Default by Tenant under the terms of this Lease. Landlord shall
have the right to make such certification immediately upon any Event of Default
by Tenant hereunder (as defined in Section 21 hereof) and to apply said
sum against all amounts then due and owing by Tenant hereunder and/or against
sums required to be and actually expended by Landlord hereunder to correct
existing defaults by Tenant. The Letter of Credit shall also provide that
Landlord shall have the right to draw upon the Letter of Credit, in full or in
part. Any balance left of the sum received from drawing on the Letter of Credit,
after the correction of defaults by Tenant and/or the payment of amounts due by
Tenant, shall be credited against the next Rent payment(s) due to Landlord. In
the event Landlord shall draw on the Letter of Credit provided by Tenant, all
as set forth herein, Tenant shall replace same no later than thirty (30) days
after the date of such drawing, and if same is not replaced, it shall
constitute an Event of Default under the terms of this Lease and Landlord shall
have the benefit of all remedies permitted pursuant to the terms of this Lease
and the laws of the State of Maryland.

 

                Tenant
acknowledges and agrees that it shall keep the Letter of Credit in full force
and effect throughout the Term of this Lease. In the event the term of the
Letter of Credit is not coterminous with the Term of this Lease, then not more
than forty-five (45) days prior to any expiration date of the Letter of Credit,
Tenant shall provide Landlord with the appropriate documentation that said
Letter of Credit has been extended and provide Landlord with the new expiration
date of same. Should Tenant fail to provide Landlord with such documentation on
or before the expiration date of the Letter of Credit, Landlord shall have the
right to draw on the entire amount of said Letter of Credit and hold it,
without interest, for the benefit of Landlord as security for the faithful
performance of the Lease until the Letter of Credit is reinstated or the Term
of the Lease expires. If the Letter of Credit is not reinstated, the amount
drawn by Landlord shall be returned to Tenant, less all costs incurred by
Landlord in correcting or satisfying any Event of Default under this Lease
within ninety (90) days after the expiration or earlier termination of the
Term.

 

4

 

                No
right or remedy available to Landlord as provided in this Section 4 shall
preclude or extinguish any other right or remedy to which Landlord may be
entitled.

 

Notwithstanding the
foregoing, Landlord shall agree to the reduction of the Letter of Credit to
$520,225.50 on July 1, 2009, if Tenant establishes that Tenant has Twenty-Five
Million ($25,000,0000) of cash or cash equivalent in its accounts (the “Condition
Precedent”). If the Condition Precedent is satisfied on July 1, 2009, and provided
that there is no Event of Default then outstanding and on each of the reduction
dates, commencing on July 1, 2010 and continuing on each annual anniversary
thereafter, the Letter of Credit may be reduced by $74,318 per annum. If,
however, the Condition Precedent has not been satisfied by July 1, 2009, the
Letter of Credit shall be increased to $780,338.25 and the Letter of Credit shall
be reduced by $111,476 per annum thereafter.

 

5.             Use. Tenant
covenants that it shall use and occupy the Premises continuously during the
Term of this Lease solely for general office space, administrative purposes,
laboratory, clean rooms and any and all other legal purposes to include any
related or ancillary use which is suitable for a modern suburban office or flex
building in Howard County, Maryland, all in accordance with applicable zoning
regulations and for no other purpose. For purposes of this Lease, the term “general
office space” shall not include use as a school, college, university or educational
institution of any type, use for any purpose which is not consistent with the
operation of the Building as a first-class office building, use as an
recruitment or temporary help service or agency, or any use involving regular
traffic by the general public.

 

6              Rent.

 

                6.1
          Base Rent.  As rent
for the Premises during each year of the Term, Tenant shall pay to Landlord an
Annual Base Rent, in equal monthly installments, in advance on the first day of
each calendar month during the Term, and without deduction, setoff or demand in
accordance with the schedule set forth in Section 1.1.6 above.  In
addition to the Base Rent, if the Term should commence on a day other than the
first day of a calendar month, Tenant shall pay to Landlord upon the Commencement
Date, a sum equaling that percentage of the monthly rent installment which
equals the percentage of such calendar month falling within the Term.

 

                6.2
          Definitions   For
the purposes hereof, the following definitions shall apply:

 

                6.2.1
“Property” shall mean the Building, the land upon which same is situated and
all fixtures and equipment thereon or therein, all commonly owned or shared
appurtenances, including but not limited to, parking areas, walkways,
landscaping and utilities, whether located on the land upon which the Building
is situated or elsewhere.

 

                6.2.2
“Building Expenses” shall be all those expenses paid or incurred by Landlord in
connection with the owning, maintain­ing, operating and repairing of the
Property or any part thereof, as required under the terms of this Lease, in a
manner deemed reasonable and appropriate by Landlord and shall include, without
limitation, the following:

 

                6.2.2.1
All costs and expenses of operating, repair­ing, lighting, cleaning, and
insuring (including liability for personal injury, death and property damage
and workers’ compensa­tion insurance covering personnel) the Property or any
part there­of, as well as all costs incurred in removing snow, ice and debris
therefrom and of policing and regulating traffic with respect thereto, and
depreciation of all machinery and equipment used therein or thereon, replacing
or repairing of pavement, parking areas, curbs, walkways, drainage, lighting
facilities, landscaping (including replanting and replacing flowers and other
planting);

 

                6.2.2.2 
Maintenance of any exterior Common Areas;

 

                6.2.2.3
Repair and maintenance of the parking areas, including without limitation, the
resurfacing and striping of said areas;

 

                6.2.4.
Sales or use taxes on supplies or services;

 

                6.2.2.5
Management fees equal to 12% of Tenant’s Proportionate Share of

 

5

 

Building Expenses, wages, salaries and
compensation of all persons engaged in the maintenance, operation or repair of
the Property (allocated to their time spent working with respect to the
Property) and the provision of amenities to all tenants in the Property
(including Landlord’s share of all payroll taxes and the cost of an on-site or
near-site office and segregated storage area for Landlord’s parts, tools and
supplies);

 

                6.2.2.6
Costs and expenses that may result from compliance with any governmental laws
or regulations that were not applicable to the Common Areas at the time same
were originally constructed; and

 

                6.2.2.7
All other expenses which under generally accepted accounting principles would
be considered as an expense of maintaining, operating, or re­pairing the
Property. Notwithstanding the foregoing, all expenses (whether or not such
expenses are enumerated on items 1 through 6 of this Section 6.2.2)
which would be considered capital in nature under generally accepted accounting
principles shall be excluded from “Building Expenses” unless same are amortized
in accordance with generally accepted accounting principles.

 

                6.2.3
“Taxes” shall mean all real property taxes including currently due installments
of assessments, sewer rents, ad valorem charges, water rates, rents and
charges, front foot benefit charges, and all other govern­mental impositions in
the nature of any of the foregoing. Excluded from Taxes are (i) federal, state
or local income taxes, (ii) franchise, gift, transfer, excise, capital stock,
estate or inheritance taxes, and (iii) penalties or interest charged for late
payment of Taxes.  If at any time during the Term the method of taxation
prevailing at the commencement of the Term shall be altered so as to cause the
whole or any part of the items listed in the first sentence of this
subparagraph to be levied, assessed or imposed, wholly or partly as a capital
levy, or otherwise, on the rents received from the Build­ing, wholly or partly
in lieu of imposition of or in addition to the increase of taxes in the nature
of real estate taxes issued against the Property, then the charge to Landlord
resulting from such altered additional method of taxation shall be deemed to be
within the definition of “Taxes.”

 

                6.2.4
“Common Areas” shall mean those areas and facilities which may be from time to
time furnished to the Building by Landlord for the non-exclusive general common
use of tenants and other occupants of the Building, their officers, employees,
and invitees, including (without limitation) the hallways, stairs, parking
facilities, washrooms, and elevators.

 

                6.2.5
“Lease Year” shall mean the first twelve (12) month period following the
Commencement Date and each succeeding twelve (12) month period thereafter up to
the end of the Term; provided, however, that if the Commencement Date shall
occur on a day other than the first day of a calendar month, then the first
Lease Year shall include that portion of a calendar month in which the
Commencement Date occurs in addition to the first twelve (12) month period.

 

                6.3
          Rent Adjustments for Taxes.
Tenant further agrees to pay to Landlord as additional rent Tenant’s Proportionate
Share of the Taxes for any calendar year or any part thereof occurring during
the Term. Such payment shall be made within thirty (30) days after receipt of a
bill from Landlord, accompanied with a copy of the tax bill and Landlord’s
computation of Tenant’s Proportionate Share thereof. Prior to the commencement
of each Lease Year, Landlord may, at its option, furnish to Tenant a written
statement setting forth Landlord’s estimate of the amount of Taxes for such Lease
Year. Tenant shall pay its Proportionate Share of Landlord’s estimated Taxes in
equal monthly installments, in advance, as additional rent together with Base
Rent. At the expiration of each Lease Year, Landlord shall certify to Tenant
the actual Taxes for such Lease Year and within thirty (30) days after receipt
of certification, Tenant shall, pay, as additional rent, the deficiency, if
any, in Taxes payable by Tenant for such Lease Year. If at the end of such Lease
Year, the total amount paid by Tenant as Tenant’s Proportionate Share of Taxes
is greater than the amount required to be paid for such Lease Year, then, if
Tenant is not in default hereunder (after the giving of any required notices
and the expiration of any cure periods), the amount of such excess payment will
be applied by Landlord to the next succeeding monthly installment of Base Rent
due hereunder. If there are any such excess payments made during the final Lease
Year, then, if Tenant is not in default hereunder (after the giving of any
required notices and the expiration of any cure periods), the amount of such
excess

 

6

 

will be refunded to Tenant within thirty (30)
days after such certification. Supplementing the provisions of the immediately
preceding sentence, if Tenant is in default, then Landlord agrees to credit
such excess payments against any Base Rent, additional rent and/or other
amounts due from Tenant.

 

                At
Tenant’s request, Landlord shall contest increases in Taxes and include any
costs in the computation of Taxes.

 

                6.4           Payment of Building Expenses. Tenant
shall pay Landlord within thirty (30) days after receipt of an invoice for
Building Expenses.

 

                6.5           Additional Rent Payments. 
Tenant’s obligation to pay any additional rent accruing during the Term
pursuant to Sections 6.3 and 6.4 hereof shall apply pro rata to
the proportionate part of a calendar year as to Taxes and Building Expenses, in
which this Lease begins or ends, for the portion of each such year during which
this Lease is in effect.  Such obligation to make payments of such
additional rent shall survive the expiration or sooner termination of the Term.

 

                6.6           Payments.  All payments
or installments of any rent hereunder and all sums whatsoever due under this
Lease (including but not limited to court costs and attorneys’ fees) shall be
deemed rent and shall be paid to Landlord at the address designated by
Landlord. If any amount of Annual Base Rent or additional rent shall remain
unpaid for five (5) calendar days after written notice that such payment is due
(provided that in no event shall Landlord be required to give Tenant more than
two (2) written notices in any twelve (12) month period), Tenant shall pay
Landlord, without notice or demand, a late charge equal to the greater of (i)
$35.00 and (ii) five percent (5%) of the such overdue amount to partially
compensate Landlord for its administrative costs in connection with such
overdue payment; which administrative costs Tenant expressly acknowledges are
reasonable and do not constitute a penalty. In addition, such overdue amounts
shall bear interest at the rate of 15% per annum (but not more than the maximum
allowable legal rate applicable to Tenant) (the “Default Rate”) until paid. Additionally,
if any of Tenant’s checks for payment of rent or additional rent are returned
to Landlord for insufficient funds, Tenant shall pay to Landlord as additional
rent the greater of (i) $50.00 or (ii) the amount of actual charges incurred by
Landlord, for each such check returned for insufficient funds, and if two or
more of Tenant’s checks in payment of rent or additional rent due hereunder are
returned for insufficient funds in any calendar year, Landlord reserves the
right upon ten (10) days advance written notice to Tenant to thereafter require
Tenant to pay all rent and additional rent and other sums whatsoever due under
this Lease in cash, by money order or by certified check or cashier’s check
  If an attorney is employed to en­force Landlord’s rights under this
Lease, Tenant shall pay all fees and expenses of such attorney whether or not
legal proceedings are instituted by Landlord. Time is of the essence in this
Lease.

 

7.             Requirements
of Applicable Law. Landlord
warrants that on the Commencement Date, the Premises shall comply with all
applicable laws, ordinances, rules and regulations of governmental authorities
having jurisdiction over the Property (“Applicable Laws”). Tenant, at its sole
cost and expense, shall thereafter comply promptly with all Applicable Laws now
in force or which may hereafter be in force, which impose any duty upon
Landlord or Tenant with respect to the use, occupancy or alteration of the
Premises or any part thereof and for the prevention of fires; provided,
however, that Landlord, at its expense, and not Tenant shall correct all struc­tural
defects in the Building necessary to comply with Applicable Laws, and make all
repairs, changes or alterations neces­sary because the Building was or is not
in compliance with any of the Applicable Laws.

 

8.             Certificate
of Occupancy. Tenant shall
not use or occupy the Premises in violation of any certificate of occupancy,
permit, or other governmental consent issued for the Building. If any
governmental authority, after the commencement of the Term, shall contend or
declare that the Premises is being used for a purpose which is in violation of
such certificate of occupancy, permit, or consent, then Tenant shall, upon five
(5) days’ notice from Landlord, immediately discontinue such use of the
Premises. If thereafter the governmental authority asserting such violation
threatens, commences or continues criminal or civil proceedings against
Landlord for Tenant’s failure to discontinue such use, in addition to any and
all rights, privileges and remedies given to Landlord under this Lease for
default therein, Landlord shall have the right to terminate

 

7

 

this Lease forthwith. Tenant shall indemnify
and hold Landlord harmless of and from any and all liability for any such
violation or violations.

 

9.             Contest-Statute,
Ordinance, Etc. Tenant may,
after notice to Landlord, by appropriate proceedings conducted promptly at
Tenant’s own expense in Tenant’s name and whenever necessary in Landlord’s
name, contest in good faith the validity or enforcement of any such statute,
ordinance, law, order, regulation or requirement and may similarly contest any
assertion of violation of any certificate of occupancy, permit, or any consent
issued for the Building. Tenant may, pending such contest, defer compliance
therewith if, in the opinion of counsel for Landlord, such deferral shall not
subject either Landlord or the Premises or the Property (or any part thereof)
to any penalty, fine or forfeiture, and if Tenant shall post a bond with
corporate surety approved by Landlord sufficient, in Landlord’s opinion, fully
to indemnify Landlord from loss.

 

10.           Tenant’s
Improvements. Tenant shall
make such non-structural improvements to the Premises as it may deem necessary
at its sole cost and expense. Tenant shall not make any alterations,
decorations, installations, additions or improvements to the Premises,
including but not limited to, the installation of any fixtures, amenities,
equipment, appliances, or other apparatus, without Landlord’s prior written
consent, and then only by contractors or mechanics employed or approved by
Landlord. Landlord’s prior written consent shall not be unreasonably withheld;
such reasonable standard shall be based on FDA GMP (good manufacturing
practices) and industry standards for associated research and development
space; provided, however, Tenant shall make no alterations or improvements to
the Premises that impair or weaken the structural integrity of the Building. All
such work, alterations, decorations, installations, additions or improvements
shall be done at Tenant’s sole expense and at such times and in such manner as
Landlord may from time to time approve. Landlord’s consent to and/or approval
of Tenant’s plans and specifications for the aforesaid improvements shall
create no responsibility or liability on the part of Landlord for their
completeness, design sufficiency, or compliance with all laws, rules and
regulations of governmental agencies or authorities. All alterations,
decorations, installations, additions or improvements made by either of the
parties hereto upon the Premises, except movable office furniture put in at the
expense of Tenant and other items as mutually agreed upon in writing, shall be
the property of Landlord and shall remain upon and be surrendered with the
Premises at the termination of this Lease without molestation or injury. Upon
request by Landlord, Tenant, at Tenant’s expense, shall remove any and all
special improvements to the Premises or Common Areas made by or on behalf of
Tenant, including, without limitation, supplemental HVAC and raised flooring.
If Tenant fails to remove any such items, Landlord shall have the right, but
not the obligation, to remove and dispose of such items, and restore the
Premises accordingly and Tenant shall reimburse Landlord for the costs of such
removal, disposal and restoration within thirty (30) days after receipt of an
invoice therefore, together with interest at the Default Rate, which shall
accrue from the date the costs were incurred by Landlord.

 

                Notwithstanding
the foregoing, (a) if this Lease is terminated prior to the expiration of the First
Renewal Term, Tenant shall reimburse Landlord for up to $150,000 of Landlord’s
costs in restoring the specialty biotechnical alterations and improvements to
the Premises and Tenant shall have no other restoration obligations, and (b) if
this Lease is terminated on or after the end of the First Renewal Term, Tenant
shall have no obligation to restore or to reimburse Landlord for restoration of
the Premises.

 

11.           Repairs
and Maintenance.

 

                11.1
Tenant’s Care of the Premises and Building. During the Term, Tenant acknowledges
that this Lease is a “triple net” lease in which Tenant, at Tenant’s expense,
shall be required to fully maintain, repair and replace the Premises and all
systems and services to the Premises, normal wear and tear excepted, subject to
the provisions of Section 11.2 below. During the Term, Tenant shall:

 

                (i)            keep the Premises and the fixtures,
appurtenances and improvements therein in good order and condition;

 

                (ii)           make repairs and replacements to the
Premises (including, without

 

8

 

limitation, the roof, foundation, exterior
walls, interior structural walls, all structural components, and all systems
such as mechanical, electrical, multi-tenant HVAC, and plumbing);

 

                (iii)          repair and replace special equipment
or decorative treatments installed by or at Tenant’s request and that serve the
Premises only, except to the extent the repairs or replacements are needed
because of Landlord’s misuse or primary negligence, and are not covered by
Tenant’s insurance as required hereunder;

 

                (iv)          pay for all damage to the Building,
its fixtures and appurtenances, as well as all damages sustained by Tenant or
occupants of the Building due to any waste, misuse or neglect of the Premises,
its fixtures and appurtenances by Tenant, except to the extent that the repair
of such damage is covered by Landlord’s insurance as required hereunder to the
extent that Landlord actually receives proceeds therefrom;

 

(v)
          provide regular janitorial
service to the Premises and remove all trash to receptacles designated by
Landlord; and

 

                (v)           not commit waste.

 

                In
addition Tenant shall not place a load upon any floor of the Premises exceeding
the floor load per square foot area which such floor was designed to carry and
which may be allowed under Applicable Laws. Landlord reserves the right to
prescribe the weight and position of all heavy equipment brought onto the
Premises and prescribe any reinforcing required under the circumstances, all
such reinforcing to be at Tenant’s expense.

 

                11.2
        Landlord’s Repairs. Landlord
shall make all other repairs and replacements to the exterior Common Areas as
shall be reasonably deemed necessary to maintain the exterior of the Building
in a condition comparable to other first class suburban office buildings in the
Baltimore-Washington corridor area. 
The costs associated with such repairs shall be deemed a part of
Building Expenses; provided, however, that costs of all of such repairs which
would be considered capital in nature under generally accepted accounting
principles (“GAAP”) shall be included in Building Expenses, amortized in
accordance with GAAP. There shall be no allowance to Tenant for a diminution of
rental value, no abatement of rent, and no liability on the part of Landlord by
reason of inconvenience, annoyance or injury to business arising from Landlord,
Tenant or others making any repairs or performing maintenance as provided for
herein.

 

                11.3
        Time for Repairs. Repairs
or replacements required pursuant to Section 11.1 and 11.2 above
shall be made within a reasonable time (depending on the nature of the repair
or replacement needed - generally no more than fifteen (15) days) after
receiving notice or having actual knowledge of the need for a repair or
replacement.

 

                11.4
        Surrender of the Premises. Upon
the termination of this Lease, without the need for prior notice from Landlord,
Tenant shall surrender the Premises to Landlord in the same broom clean
condition that the Premises were in on the Commencement Date except for:

 

                (i)            ordinary wear and tear;

 

                (ii)           damage by the elements, fire, and
other casualty unless Tenant would be required to repair under the provisions
of this Lease;

 

                (iii)          damage arising from any cause not
required to be repaired or replaced by Tenant; and

 

                (iv)          alterations as permitted by this Lease
unless consent was conditioned on their removal.

 

                On
surrender Tenant shall remove from the Premises its personal property, trade
fixtures and any alterations required to be removed pursuant to the terms of
this Lease and repair any damage to the Premises caused by this removal. Any
items not removed by Tenant as required above shall be considered abandoned. Landlord
may dispose of abandoned items as Landlord

 

9

 

chooses and bill Tenant for the cost of their
disposal.

 

12.           Conduct
on Premises. Tenant shall
not do, or permit anything to be done in the Premises, or bring or keep
anything therein which shall, in any way, increases the rate of fire insurance
on the Building, or invalidate or conflict with the fire insurance policies on
the Building, fixtures or on property kept therein, or obstruct or interfere
with the rights of Landlord or of other tenants, or in any other way injure or
annoy Landlord or the other tenants, or subject Landlord to any liability for
injury to persons or damage to property, or interfere with the good order of
the Building, or conflict with Applicable Laws, or the Maryland Fire
Underwriters Rating Bureau. Tenant agrees that any increase of fire insurance
premiums on the Building or contents caused by the occupancy of Tenant and any
expense or cost incurred in consequence of negligence or carelessness or the
willful action of Tenant, Tenant’s employees, agents, servants, or invitees
shall, as they accrue be added to the rent heretofore reserved and be paid as a
part thereof; and Landlord shall have all the rights and remedies for the
collection of same as are conferred upon Landlord for the collection of rent
provided to be paid pursuant to the terms of this Lease.

 

13.           Insurance
.

 

                13.1         Tenant’s Insurance. Tenant shall
keep in force at its own expense, so long as this Lease remains in effect, (a)
public liability insurance, including insurance against assumed or contractual
liability under this Lease, with respect to the Premises, to afford protection
with limits, per person and for each occur­rence, of not less than Two Million
Dollars ($2,000,000), combined single limit, with respect to personal injury
and death and prop­erty damage, such insurance to provide for only a reasonable
deductible, (b) all-risk property and casualty insurance, including theft,
written at replacement cost value and with replacement cost endorsement,
covering all of Tenant’s personal property in the Premises and all improvements
and installed in the Premises by or on behalf of Tenant whether pursuant to the
terms of Section 35, Section 10, or otherwise, such insurance to
provide for only a reasonable deductible, (c) if, and to the extent, required
by law, workmen’s compensation or similar insurance offering statutory coverage
and containing sta­tutory limits, (d) shall insure all plate and other interior
glass in the Premises for and in the name of Landlord and (e) business interruption insurance
in an amount sufficient to reimburse Tenant for loss of earnings attributable
to prevention of access to the Building or the Premises for a period of at
least twelve (12) months. Such policies shall be maintained in companies and
in form reasonably acceptable to Landlord and shall be written as primary
policy coverage and not contributing with, or in excess of, any coverage which
Landlord shall carry.  Tenant shall deposit the policy or policies of such
required insurance or certificates thereof with Landlord prior to the
Commencement Date, which policies shall name Landlord or its designee and, at
the request of Landlord, its mortgagees, as additional insured and shall also
contain a provision stating that such policy or policies shall not be canceled
except after thirty (30) days’ written notice to Landlord or its
designees.  All such policies of in­surance shall be effective as of the
date Tenant occupies the Premises and shall be maintained in force at all times
during the Term of this Lease and all other times during which Tenant shall
occupy the Premises.  In addition to the foregoing insurance coverage,
Tenant shall require any contractor retained by it to perform work on the
Premises to carry and maintain, at no expense to Landlord, during such times as
contractor is working in the Premises, a non-deductible (i) comprehensive
general liability insurance policy, including, but not limited to, contractor’s
liability coverage, contractual liability coverage, completed operations coverage,
broad form property damage endorsement and contractor’s protective liability
coverage, to afford protection with limits per person and for each occurrence,
of not less than Two Hundred Thousand Dollars ($200,000.00), combined single
limit, with respect to personal injury and death and property damage, such
insurance to provide for no deductible, and (ii) workmen’s compensation
insurance or similar insurance in form and amounts as required by law.  In
the event of damage to or destruction of the Premises and the termination of
this Lease by Landlord pursuant to Section 18 herein, Tenant agrees that
it shall pay Landlord all of its insurance proceeds relating to improvements not
required to be restored at the end of the Term made in the Premises by or on
behalf of Tenant whether pursuant to the terms of Section 35, Section
10, or otherwise.  If Tenant fails to comply with its covenants made
in this Section, if such insurance would terminate or if Landlord has reason to
believe such insurance is about to be terminated, Landlord may at its option
cause such insurance as it in its sole judgment deems necessary to be issued,
and in such event Tenant agrees to pay promptly upon Landlord’s demand, as
additional rent the premiums for such insurance.

 

 

10

 

                13.2         Landlord’s Insurance. Landlord
shall keep in force at its own expense (a) contractual and commercial general
liability insurance, including public liability and property damage, with a
minimum combined single limit of liability of Two Million Dollars
($2,000,000.00) for personal injuries or death of persons occurring in or about
the Building and Premises, and (b) all-risk physical loss property and casualty
insurance written on 100% of full replacement cost (excluding footings and
foundations) value covering the Building and all of Landlord’s improvements in
and about same.

 

                13.3         Waiver of Subrogation. Each
party hereto waives claims arising in any manner in its favor and against the
other party and agrees that neither party hereto shall be liable to the other
party or to any insurance company (by way of subrogation or otherwise) insuring
the other party for any loss or damage to the Building, the Premises or other
tangible property, or any resulting loss of income, or losses under worker’s
compensation laws and benefits, or against liability on or about the Building,
even though such loss or damage might have been occasioned by the negligence of
such party, its agents or employees if any such loss or damage is covered by
insurance benefiting the party suffering such loss or damage as was required to
be covered by insurance carried pursuant to this Lease. Landlord shall cause
each insurance policy carried by it insuring against liability on or about the
Building or insuring the Premises and the Building or income resulting
therefrom against loss by fire or any of the casualties covered by the all-risk
insurance carried by it hereunder to be written in such a manner as to provide
that the insurer waives all right of recovery by way of subrogation against
Tenant in connection with any loss or damage covered by such policies. 
Tenant shall cause each in­surance policy carried by it insuring against
liability or insur­ing the Premises (including the contents thereof and Tenant’s
Improvements installed therein by Tenant or on its behalf) against loss by fire
or any of the casualties covered by the all-risk insurance required hereunder
to be written in such a manner as to provide that the insurer waives all right
of recovery by way of subrogation against Landlord in connection with any loss
or damage covered by such policies.

 

14.           Rules
and Regulations. Tenant shall
be bound by the rules and regulations set forth on the schedule attached hereto
as Exhibit “B” and made a part hereof. Landlord shall have the right,
from time to time, to issue additional or amended rules and regulations
regarding the use of the Building, so long as the rules shall be reasonable and
non-discriminatory between tenants. When so issued the same shall be considered
a part of this Lease and Tenant covenants that the additional or amended rules
and regulations shall likewise be faithfully observed by Tenant, the employees
of Tenant and all persons invited by Tenant into the Building, provided, that
the additional or amended rules are made applicable to all office tenants
similarly situated as Tenant. Landlord shall not be liable to Tenant for the
violation of any of the rules and regulations, or the breach of any covenant or
condition in any lease, by any other tenant in the Building.

 

15.           Mechanics’
Liens. Tenant shall
not do or suffer to be done any act, matter or thing whereby Tenant’s interest
in the Premises, or any part thereof, may be encumbered by any mechanics’ lien.
Tenant shall discharge, or bond off, within ten (10) days after the date of
filing, any mechanics’ liens filed against Tenant’s interest in the Premises,
or any part thereof, purporting to be for labor or material furnished or to be
furnished to Tenant. Landlord shall not be liable for any labor or materials
furnished or to be furnished to Tenant upon credit, and no mechanics’ or other
lien for labor or materials shall attach to or affect the reversionary or other
estate or interest of Landlord in and to the Premises, or the Property.

 

16.           Tenant’s
Failure to Repair.  In the
event that Tenant fails after five (5) days reasonable prior written notice
from Landlord, to keep the Premises in a good state of condition and repair
pursuant to Section 11 above, or to do any act or make any payment
required under this Lease or otherwise fails to comply herewith, Landlord may,
at its option (but without being obliged to do so) immediately, or at any time
thereafter and without notice, perform the same for the account of Tenant,
including the right to enter upon the Premises at all reasonable hours to make
such repairs, or do any act or make any payment or compliance which Tenant has
failed to do, and upon demand, Tenant shall reimburse Landlord for any such
expense incurred by Landlord including but not limited to any costs, damages
and counsel fees. Any moneys expended by Landlord, as aforesaid, shall be
deemed additional rent, collectible as such by Landlord. All rights given to
Landlord in this Section shall be in addition to any other right or remedy of
Landlord herein contained.

 

11

 

17.           Property
— Loss, Damage. Landlord, its
agents and employees shall not be liable to Tenant for (i) any damage or loss
of property of Tenant placed in the custody of persons employed to provide
services for or stored in or about the Premises and/or the Building, unless
such damage or loss is the result of the negligence of Landlord, (ii) any
injury or damage to persons, property or the business of Tenant resulting from
a latent defect in or material change in the condition of the Building, and
(iii) interference with the light, air, or other incorporeal hereditaments
of the Premises.

 

18.           Destruction
— Fire or Other Casualty. In case of partial damage
to the Premises by fire or other casualty insured against by Landlord, Tenant
shall give immediate notice thereof to Landlord, who shall thereupon cause
damage to all property owned by it to be repaired with reasonable speed at
expense of Landlord, to the extent of insurance proceeds actually received by
Landlord, due allowance being made for reasonable delay which may arise by
reason of adjustment of loss under insurance policies on the part of Landlord
and/or Tenant, and for reasonable delay on account of “labor troubles” or any
other cause beyond Landlord’s control, and to the extent that the Premises are
rendered untenantable the rent shall proportionately abate from the date of
such casualty. If such partial damage is due to the fault or neglect of Tenant,
or Tenant’s servants, employees, agents, or invitees, the damage shall be
repaired by Landlord to the extent of Landlord’s insurance coverage, but there
shall be no apportionment or abatement of rent.  In the event the damage
shall be so extensive to the whole Building as to render it uneconomical, in
Landlord’s opinion, to restore for its present uses and Landlord shall decide
not to repair or rebuild the Building, this Lease, at the option of Landlord,
shall be terminated upon written notice to Tenant and the rent shall, in such
event, be paid to or adjusted as of the date of such damage, and the terms of
this Lease shall expire by lapse of time and conditional limitation upon the
third day after such notice is mailed, and Tenant shall thereupon vacate the
Premises and surrender the same to Landlord, but no such termination shall
release Tenant from any liability to Landlord arising from such damage or from
any breach of the obligations imposed on Tenant hereunder, or from any
obligations accrued hereunder prior to such termination.

 

19.           Eminent
Domain.  If (1)
the whole or more than fifty percent (50%) of the floor area of the Premises
shall be taken or condemned by Eminent Domain for any public or quasi-public
use or purpose, and either party shall elect, by giving written notice to the
other, or (2) more than twenty-five percent (25%) of the floor area of the
Building shall be so taken, and Landlord shall elect, in its sole discretion,
by giving written notice to Tenant, any written notice to be given not more
than sixty (60) days after the date on which title shall vest in such
condemnation proceeding, to terminate this Lease, then, in either such event,
the Term of this Lease shall cease and terminate as of the date of title
vesting.  In case of any taking or condemnation, whether or not the Term
of this Lease shall cease and terminate, the entire award shall be the property
of Landlord, and Tenant hereby assigns to Landlord all its right, title and
interest in and to any such award, except that Tenant shall be entitled to
claim, prove and receive in the proceedings such awards as may be allowed for
moving expenses, loss of profit and fixtures and other equipment installed by
it which shall not, under the terms of this Lease, be or become the property of
Landlord at the termination hereof, but only if such awards shall be made by
the condemnation, court or other authority in addition to, and be stated
separately from, the award made by it for the Property or part thereof so
taken.

 

20.           Assignment. So long as
Tenant is not in default of any of the terms and conditions hereof, after the
giving of all required notices and the expiration of all cure periods, Landlord
shall not unreasonably withhold its consent to an assignment of this Lease or
sublease of the Premises for any of the then remaining portion of the unexpired
Term provided: (i) the net assets of the assignee or sublessee shall not be
less than the net assets of Tenant at the time of the signing of this Lease;
(ii) in the event of an assignment, such assignee shall assume in writing all of
Tenant’s obligations under this Lease; (iii) in the event of a sublease, such
sublease shall in all respects be subject to and in conformance with the terms
of this Lease; and (iv) in all events Tenant continues to remain liable on this
Lease for the performance of all terms, including but not limited to, payment
of all rent due hereunder. Landlord and Tenant acknowledge and agree that it
shall not be unreasonable for Landlord to withhold its consent to an assignment
if in Landlord’s sole business judgment, the assignee lacks sufficient business
experience or net worth to successfully operate its business within the
Premises in accordance with the terms, covenants and conditions of this Lease. If
this Lease be assigned, or if the Premises or any part thereof be

 

12

 

sublet or occupied by anybody other than
Tenant, Landlord may, after default by Tenant, collect rent from the assignee,
subtenant or occupant and apply the net amount collected to the rent herein
reserved, but no such collection shall be deemed a waiver of this covenant, or
the acceptance of the assignee, subtenant or occupant as tenant, or a release
of Tenant from the further observance and performance by Tenant of the
covenants herein contained. In addition, in the event of a proposed assignment,
Landlord shall have the right, but not the obligation, to terminate this Lease
by giving Tenant thirty (30) days’ advance written notice (“Landlord’s
Termination Notice”); provided, however, that Tenant shall have the right to
abrogate Landlord’s Termination Notice by notifying Landlord within ten (10)
days after receipt of Landlord’s Termination Notice of the withdrawal of the
request for consent to the assignment. No assignment or sublease, regardless of
whether Landlord’s consent has been granted or withheld, shall be deemed to
release Tenant from any of its obligations nor shall the same be deemed to
release any person guaranteeing the obligations of Tenant hereunder from their
obligations as guarantor. Landlord’s acceptance of any name submitted by
Tenant, an agent of Tenant, or anyone acting by, through or under Tenant for
the purpose of being listed on the Building directory will not be deemed, nor
will it substitute for, Landlord’s consent, as required by this Lease, to any
sublease, assignment, or other occupancy of the Premises by anyone other than
Tenant or Tenant’s employees. Fifty percent (50%) of any profit or additional
consideration or rent in excess of the Base Rent or additional rent payable by
Tenant hereunder (after taking into account tenant improvements and leasing
commissions) which is payable to Tenant as a result of any assignment or
subletting shall be paid to Landlord as additional rent when received by
Tenant. All the foregoing notwithstanding, Tenant shall not enter into any
lease, sublease, license, concession or other agreement for the use, occupancy
or utilization of the Premises or any portion thereof, which provides for a
rental or other payment for such use, occupancy or utilization based in whole
or in part on the income or profits derived by any person or entity from the
property leased, used, occupied or utilized. Any such purported lease,
sublease, license, concession or other agreement shall be absolutely void and
ineffective as a conveyance of any right or interest in the possession, use or
occupancy of any part of the Premises. Any consent by Landlord hereunder shall
not constitute a waiver of strict future compliance by Tenant with the
provisions of this Section 20. In no event shall the proposed assignee or
sublessee be occupying other space in the Building, nor shall it be a
prospective tenant either then negotiating with Landlord or has negotiated with
Landlord for premises within the prior six (6) month period.

 

Notwithstanding the
foregoing, without the consent and approval of Landlord, Tenant shall have the
right to (i) assign the Lease or sublease the Premises or any portion thereof
(however, Tenant shall endeavor to provide ten (10) days’ prior written notice
thereof along with a true and complete copy of the sublease or assignment
document) to any subsidiary or affiliate of Tenant or (ii) assign the Lease or
sublease the Premises in the event of a merger or a sale of all or
substantially all of the Tenant’s assets, and in any event shall notify
Landlord in writing within thirty (30) days of the effective date of such
assignment or sublease. For the purposes hereof, “affiliate” shall mean an
entity or individual that controls, is controlled by or is under the common
control with Tenant. Tenant shall remain liable under the terms hereof if
Tenant exercises its rights under this paragraph to the extent it survives such
corporate event. In the event of an assignment or subletting under this
paragraph, Tenant shall be entitled to retain any profits from such
transaction.

 

Notwithstanding anything to
the contrary contained herein, the following shall not constitute an assignment
for the purposes of this Lease: (i) a transfer of stock among Tenant’s
stockholders and/or their immediate families; (ii) a transfer of stock by will
or devise; (iii) a transfer of stock in connection with a public offering
registered with the Security and Exchange Commission; or (iv) a transfer of
less than a majority of Tenant’s stock.

 

13

 

21.           Default;
Remedies; Bankruptcy of Tenant.  Any one or more of
the following events shall constitute an “Event of Default” hereunder, at
Landlord’s election:  (a) the sale of Tenant’s interest in the Premises
under attachment, execution or similar legal process or, the adjudication of
Tenant as a bankrupt or insolvent, unless such adjudication is vacated within sixty
(60) days; (b) the filing of a voluntary petition proposing the adjudication of
Tenant (or any guarantor of Tenant’s obligations hereunder) as a bankrupt or
insolvent, or the reorganization of Tenant (or any such guarantor), or an
arrangement by Tenant (or any such guarantor) with its creditors, whether
pursuant to the Federal Bankruptcy Code or any similar federal or state
proceeding, unless such petition is filed by a party other than Tenant (or any
such guarantor) and is withdrawn or dismissed within sixty (60) days after the
date of its filing; (c) the admission, in writing, by Tenant (or any such
guarantor) of its inability to pay its debts when due; (d) the appointment of a
receiver or trustee for the business or property of Tenant (or any such
guarantor), unless such appointment is vacated within sixty (60) days of its
entry; (e) the making by Tenant (or any such guarantor) of an assignment
for the benefit of its creditors, or if, in any other manner, Tenant’s interest
in this Lease shall pass to another by operation of law; (f) the failure of Tenant
to pay any rent, additional rent or other sum of money when due and such
failure continues for a period of ten (10) days after receipt of written notice
that the same is past due hereunder; (g)
if Tenant fails to pay any rent or additional rent when due after Landlord
shall have given Tenant written notice with respect to such non-payment four
times in any twelve (12) month period as provided in subsection (f) above; (h)
Tenant shall fail to move into or take possession of the Premises within thirty
(30) days after commencement of the Term or having taken possession shall
thereafter abandon and/or vacate the Premises; (i) the default by Tenant in the
performance or observance of any covenant or agreement of this Lease (other
than a default involving the payment of money), which default is not cured
within thirty (30) days after the giving of notice thereof by Landlord, unless
such default is of such nature that it cannot be cured within such thirty (30)
day period, in which case no Event of Default shall occur so long as Tenant
shall commence the curing of the default within such thirty (30) day period and
shall thereafter diligently prosecute the curing of same., or (j) termination of the Sublease by and
between Broadwing Corporation, as sublandlord,, and Tenant, as subtenant, as a
result of Tenant’s default thereunder.

 

                Upon
the occurrence and continuance of an Event of Default, Landlord, with such
notice to Tenant as provided for by law or as expressly provided for herein,
may do any one or more of the following:  (a) perform, on behalf and at
the expense of Tenant, any obligation of Tenant under this Lease which Tenant
has failed to perform and of which Landlord shall have given Tenant notice, the
cost of which performance by Landlord, together, with interest thereon at the
rate of fifteen percent (15%) per annum, from the date of such expenditure,
shall be deemed additional rent and shall be payable by Tenant to Landlord upon
demand; (b) elect to terminate this Lease and the tenancy created hereby by giving
notice of such election to Tenant in which event Tenant shall be liable for
Base Rent, additional rent, and other indebtedness that otherwise would have
been payable by Tenant during the remainder of the Term had there been no Event
of Default, and on notice reenter the Premises, by summary proceedings or
otherwise, and remove Tenant and all other persons and property from the Pre­mises,
and store such property in a public warehouse or elsewhere at the cost and for
the account of Tenant, without resort to legal process and without Landlord
being deemed guilty of trespass or becoming liable for any loss or damage
occasioned thereby; and also the right, but not the obligation, to re-let the
Premises for any unexpired balance of the Term, and collect the rent
therefor.  In the event of such re-letting by Landlord, the
re-letting shall be on such terms, conditions and rental as Landlord may deem
proper, and the proceeds that may be collected from the same, less the expense
of re-letting (including rea­sonable leasing fees and commissions and
reasonable costs of renovating the Premises), shall be applied upon Tenant’s
rental obligation as set forth in this Lease for the unexpired portion of the
Term.  Tenant shall be liable for any balance that may be due under this
Lease, although Tenant shall have no further right of possession of the
Premises; and (c) exercise any other legal or equitable right or remedy
which it may have at law or in equity.  Notwithstanding the provisions of
clause (a) above and regardless of whether an Event of Default shall have
occurred, Landlord may exercise the remedy described in clause (a) without any
notice to Tenant if Landlord, in its good faith judgment, believes it would be
materially in­jured by the failure to take rapid action, or if the unperformed
obligation of Tenant consti­tutes an emergency.

 

                TO
THE EXTENT PERMITTED BY LAW, TENANT HEREBY EXPRESSLY

 

14

 

WAIVES ANY AND ALL RIGHTS OF REDEMPTION,
GRANTED BY OR UNDER ANY PRESENT OR FUTURE LAWS IN THE EVENT OF TENANT’S BEING
EVICTED OR DISPOSSESSED FOR ANY CAUSE, OR IN THE EVENT OF LANDLORD’S OBTAINING
POSSESSION OF THE PREMISES, BY REASON OF THE VIOLATION BY TENANT OF ANY OF THE
COVENANTS AND CONDITIONS OF THIS LEASE, OR OTHERWISE. LANDLORD AND TENANT
HEREBY EXPRESSLY WAIVE TRIAL BY JURY IN ANY ACTION OR PROCEEDING OR
COUNTERCLAIM BROUGHT BY EITHER PARTY HERETO AGAINST THE OTHER PARTY ON ANY AND
EVERY MATTER, DIRECTLY OR INDIRECTLY ARISING OUT OF OR WITH RESPECT TO THIS
LEASE, INCLUDING, WITHOUT LIMITATION, THE RELATIONSHIP OF LANDLORD AND TENANT,
THE USE AND OCCUPANCY BY TENANT OF THE PREMISES, ANY STATUTORY REMEDY AND/OR
CLAIM OF INJURY OR DAMAGE REGARDING THIS LEASE.

 

                Any
costs and expenses incurred by Landlord (including, without limitation,
reasonable attorneys’ fees) in enforcing any of its rights or remedies under
this Lease shall be deemed to be additional rent and shall be repaid to
Landlord by Tenant upon demand.

 

                Notwithstanding
any of the other provisions of this Lease, in the event Tenant shall
voluntarily or involuntarily come under the jurisdiction of the Federal
Bankruptcy Code and thereafter Tenant or its trustee in bankruptcy, under the
authority of and pursuant to applicable provisions thereof, shall have the power
and so using same determine to assign this Lease, Tenant agrees that (i) Tenant
or its trustee shall provide to Landlord sufficient information enabling it to
independently determine whether Landlord will incur actual and substantial
detriment by reason of such assignment and (ii) “adequate assurance of future
performance” under this Lease, as that term is generally defined under the
Federal Bankruptcy Code, shall be provided to Landlord by Tenant and its
assignee as a condition of the assignment.

 

Notwithstanding anything to
the contrary contained herein, Tenant shall be considered in “Habitual Default” of
this Lease upon (a) Tenant’s failure, on two (2) or more occasions during any
twelve month period to pay when due any installment of Base Rent, additional
rent or any other sum required by the terms of this Lease, or upon (b) Tenant’s
failure, on two (2) or more occasions during any twelve month period to comply
with any term, covenant or condition of this Lease after written notice by
Landlord to Tenant. Upon the occurrence of an event of Habitual Default on the
part of Tenant, then without limiting any other rights or remedies to which
Landlord may be entitled as a result of such defaults: (i) Tenant shall
immediately be deemed to have relinquished any and all options or rights
granted, or to be granted, to Tenant under the terms of this Lease or any
amendment hereto (including, without limitation, rights of renewal, rights to
terminate, rights of first offer or rights of first refusal); and (ii) in the event
of a monetary event of Habitual Default, Tenant shall thereafter pay all Base
Rent and additional rent and other sums whatsoever due under this Lease in
cash, by money order or by certified check or cashier’s check.

 

22.           Damages.  If this
Lease is terminated by Landlord pursuant to Section 21, Tenant shall,
nevertheless, remain liable for all rent and damages which may be due or
sustained prior to such termination, and all reasonable costs, fees and
expenses including, but not limited to, attorneys’ fees, costs and expenses
incurred by Landlord in pursuit of its remedies hereunder, or in renting the
Premises to others from time to time and additional damages (the “Liquidated
Damages”), which shall be an amount equal to the total rent which, but for
termination of this Lease, would have become due during the remainder of the
Term, less the amount of rent, if any, which Landlord shall receive during such
period from others to whom the Premises may be rented (other than any
additional rent received by Landlord as a result of any failure of such other
person to per­form any of its obligations to Landlord), in which case such
Liquidated Damages shall be computed and pay­able in monthly in­stallments, in
advance on the first day of each calendar month following termination of the
Lease and continuing until the date on which the Term would have expired but
for such termina­tion, and any suit or action brought to collect any such Liqui­dated
Damages for any month shall not in any manner prejudice the right of Landlord
to collect any Liquidated Damages for any subse­quent month by a similar
proceeding.

 

                If
this Lease is terminated pursuant to Section 21, Landlord may relet the
Premises or any part thereof, alone or together with other premises, for such
term(s) which may be greater or less than the period which otherwise would have
constituted the balance of the Term and on such

 

15

 

terms and conditions (which may include
concessions, free rent and/or alterations of the Premises) as Landlord, in its
sole discretion, may determine, but Landlord shall not be liable for, nor shall
Tenant’s obligations hereunder be diminished by reason of, any failure by
Landlord to relet the Premises or any failure by Landlord to collect any rent
due upon such reletting.

 

23.           Services
and Utilities. 
Landlord shall provide the following listed services and utilities, namely:

 

                (a)           electric energy in accordance with Section
24 following; and

 

                (b)           hot and cold water sufficient for
drinking, lavatory toilet and ordinary cleaning purposes from fixtures either
within the Premises (if provided pursuant to this Lease) or on the floor on
which the Premises are located.

 

Landlord shall have no
responsibility or liability for failure to supply HVAC, elevator, plumbing,
cleaning, and electric service, during the period when prevented from so doing
by laws, orders, or regulations of any Federal, State, County or Municipal
authority or by strikes, accidents or by any other cause whatsoever beyond
Landlord’s control.

 

24.           Electric
Current. Landlord has supplied or will supply the
Premises with the necessary lines to provide electric service to the Premises
for normal office and data center operations, as well as separate meters so
that Tenant’s consumption of electric power can be separately measured and
charged to Tenant. Tenant shall pay all charges (including meter installation
and adjustment) for electric and similar utilities or services so supplied
directly to the utility company supplying same when due and before penalties or
late charges on same shall accrue. Tenant shall not at any time overburden or
exceed the capacity of the mains, feeders, ducts, conduits, or other facilities
by which electric and similar utilities are supplied to, distributed in or
serve the Premises. If Tenant desires to install any equipment which shall
require additional electric or similar facilities of a greater capacity than as
provided by Landlord, such installation shall be subject to Landlord’s prior
written approval of Tenant’s plans and specifications therefor, which approval
shall not be unreasonably withheld. If such installation is approved by
Landlord, all costs for providing such additional electrical and similar
facilities shall be paid by Tenant.

 

25.           Telephone and
Telecommunications. Landlord has
arranged for the installation of telephone service within the Building to the
ground floor telephone utility closet and conduit to the ground floor telephone
and electrical riser closets. Tenant shall be responsible for contacting the
utility company supplying the telephone service and arranging to have such
telephone facilities as it may desire to be extended and put into operation in
the Premises, including without limitation, obtaining a low voltage permit for
phone and data wiring. Tenant acknowledges and agrees that all telephone and
telecommunications services desired by Tenant shall be ordered and utilized at
the sole expense of Tenant. All costs related to installation and the provision
of such service shall be borne and paid for directly by Tenant. Upon request by
Landlord, Tenant, at Tenant’s expense, shall remove the telephone facilities at
the expiration or sooner termination of the Term. Tenant shall obtain the
requisite permit and complete the ceiling work in cooperation with Landlord in
order not to interfere with or delay the completion of the Tenant Improvements
by Landlord pursuant to Section 35, including, without limitation, the
closing of the ceiling and the carpet installation, if applicable. Landlord
will allow Tenant access for wiring, including electric, data and telecom,
within the Building’s public areas and designated chases, but will not
guarantee access of the wiring through another tenant’s space. Tenant, at
Tenant’s expense, shall be responsible for the relocation and its associated
costs, if requested, of any data, telecom or electrical wiring that runs
through another tenant’s space, including the plenum area or otherwise.

 

                In
the event Tenant wishes to utilize the services of a telephone or
telecommunications provider whose equipment is not servicing the Building at
such time Tenant wishes to install its telecommunications equipment serving the
Premises (“Provider”), no such Provider shall be permitted to install its lines
or other equipment without first securing the prior written consent of
Landlord, which consent shall not be unreasonably withheld. Prior to the commencement
of any work in or about the Building by the Provider, the Provider shall agree
to abide by such rules and regulations, job site rules, and such other
requirements as reasonably determined by Landlord to be necessary to protect
the interest of the Building and Property, the other tenants and occupants

 

16

 

of the Building and Landlord, including,
without limitation, providing security in such form and amount as reasonable
determined by Landlord. Each Provider must be duly licensed, insured and
reputable. Landlord shall incur no expense whatsoever with respect to any
aspect of Provider’s provision of its services, including without limitation,
the costs of installation, materials and service.

 

26.           Intentionally
Left Blank.

 

27.           Inability
to Perform.  This
Lease and the obligation of Tenant to pay rent hereunder and perform all of the
other cove­nants and agreements hereunder on the part of Tenant to be per­formed
shall in no way be affected, impaired or excused because Landlord is unable to
fulfill any of its obligations under this Lease or to supply, or is delayed in
supplying, any service to be supplied by it under the terms of this Lease or is
unable to make, or is delayed in making any repairs, additions, alterations, or
decorations or is unable to supply, or is delayed in supplying, any equipment
or fixtures if Landlord is prevented or delayed from so doing by reason of
strikes or labor troubles or any outside cause whatsoever including, but not
limited to, governmental pre­emption in connection with a national emergency,
or by reason of any rule, order or regulation of any department or subdivision
of any government agency or by reason of the conditions of supply and demand
which have been or are affected by war or other emergency.  Similarly,
Landlord shall not be liable for any interference with any services supplied to
Tenant by others if such inter­ference is caused by any of the reasons listed
in this Section.  Nothing contained in this Section shall be deemed to
impose any obligation on Landlord not expressly imposed by other sections of
this Lease.

 

28.           No
Waivers.  The
failure of Landlord to insist, in any one or more instances, upon a strict
performance of any of the covenants of this Lease, or to exercise any option
herein contained, shall not be construed as a waiver, or a relinquishment for
the future, of such covenant or option, but the same shall continue and remain
in full force and effect.  The receipt by Landlord of rent, with knowledge
of the breach of any covenant hereof, shall not be deemed a waiver of such
breach, and no waiver by Landlord of any provision hereof shall be deemed to
have been made unless expressed in writing and signed by Landlord.

 

29.           Access
to Premises and Change in Services.  Landlord shall have
the right, without abatement of rent, to enter the Premises at any hour to examine
the same, or to make such repairs and alterations as Landlord shall deem
necessary for the safety and preservation of the Building, and also to exhibit
the Premises to be let; provided, however, that except in the case of emergency
such entry shall only be after notice first given to Tenant. Notwithstanding
the foregoing, except in the event of an emergency, Landlord shall always enter
and be in the Premises accompanied by a representative of Tenant. In an
emergency situation, Landlord shall have the right to enter the Premises as
required and Tenant shall reimburse Landlord for any costs incurred with such
entry. If, during the last month of the Term, Tenant shall have removed all or
substantially all of Tenant’s property therefrom, Landlord may immediately
enter and alter, renovate and redecorate the Premises, without elimination or
abatement of rent, or incurring liability to Tenant for any compensation, and
such acts shall have no effect upon this Lease.  Nothing herein contained,
however, shall be deemed or construed to impose upon Landlord any obligation,
responsibility or liability whatsoever, for the care, supervision or repair, of
the Building or any part thereof, other than as herein elsewhere expressly
provided.  Landlord shall also have the right at any time, without the
same constituting an actual or constructive eviction and without incurring any
liability to Tenant therefor, to change the arrangement and/or location of
entrances or passageways, doors and doorways, and corridors, stairs, toilets,
elevators, or other public parts of the Building, and to change the name by
which the Building is commonly known and/or its mailing address.

 

30.           Estoppel Certificates.  Tenant
agrees, at any time and from time to time, upon not less than ten (10) days’
prior request by Landlord to execute, acknowledge and deliver to Landlord an
estoppel certificate substantially in the form attached hereto as Exhibit “D”
or such other reasonable form requested by Landlord which certifies that this
Lease is unmodified and in full force (or if there have been modifications,
that the same is in full force and effect as modified and stating the
modifications) and the dates through which the rent and other charges have been
paid in advance, if any, and stating whether or not to the best knowledge of
the signer of such certificate Landlord is in default in performance of any
covenant, agreement or condition

 

17

 

contained
in this Lease and, if so, specifying each such default of which the signer may
have knowledge, it being intended that any such statement delivered hereunder
may be relied upon by third parties not a party to this Lease.

 

31.           Subordination.  Tenant
accepts this Lease, and the tenancy created hereunder, subject and subordinate
to any mortgages, overleases, leasehold mortgages or other security interests
now or hereafter a lien upon or affecting the Building or the Property or any
part thereof.  Tenant shall, at any time hereafter, within ten (10) days
after request from Landlord, execute a Subordination, Non-Disturbance Agreement
substantially in the form of Exhibit “E” attached hereto and made a part
hereof or any instruments or leases or other documents that may be required by
any mortgage or mort­gagee or overlandlord (herein a “Mortgagee”) for the
purpose of subjecting or subordi­nating this Lease and the tenancy created
hereunder to the lien of any such mortgage or mortgages or underlying lease,
and the failure of Tenant to execute any such instruments, releases or
documents shall constitute a default hereunder.

 

32.           Attornment.  Tenant
agrees that upon any termination of Landlord’s interest in the Premises, Tenant
shall, upon request, attorn to the person or organization then holding title to
the reversion of the Premises (the “Successor”) and to all subsequent
Successors, and shall pay to the Successor all of the rents and other monies
required to be paid by Tenant hereunder and perform all of the other terms,
covenants, condi­tions and obligations in this Lease contained; provided,
however, that if in connection with such attornment Tenant shall so request
from such Successor in writing, such Successor shall execute and deliver to
Tenant an instrument wherein such Successor agrees that as long as Tenant
performs all of the terms, covenants and condi­tions of this Lease, on Tenant’s
part to be performed, Tenant’s possession under the provisions of this Lease
shall not be dis­turbed by such Successor. In the event that the Mortgagee
succeeds to the interest of Landlord hereunder and is advised by its counsel
that all or any portion of the Base Rent or additional rent payable by Tenant
hereunder is or may be deemed to be unrelated business income within the
meaning of the United States Internal Revenue Code or regulations issued
thereunder, Mortgagee, as Landlord, shall have the right at any time, from time
to time, to notify Tenant in writing of the required changes to the Lease. Tenant
shall execute all documents necessary to effect any such amendment within ten
(10) days after written request from Mortgagee, as landlord, provided that in
no event shall such amendment increase Tenant’s payment obligations or other
liability under this Lease or reduce Landlord’s obligations hereunder.

 

33.           Notices.  All
notices and other communications to be made hereunder shall be in writing and
shall be delivered to the addresses set forth below by any of the following
means: (a) personal service or receipted courier service; (b) telecopying (if
confirmed in writing sent by the methods specified in clauses (a), (c) or (d)
of this Section), (c) registered or certified first class mail, return receipt
requested, or (d) nationally-recognized overnight delivery service. Such
addresses may be changed by notice to the other parties given in the same
manner as provided above. Any notice or other communication sent pursuant to
clause (a) or (b) hereof shall be deemed received upon such personal service or
upon dispatch by electronic means, if sent pursuant to subsection (c) shall be
deemed received five (5) days following deposit in the mail and/or if sent
pursuant to subsection (d) shall be deemed received the next succeeding
business day following deposit with such nationally recognized overnight
delivery service.

 

18

 

If
to Landlord (prior to 7/17/06):

                                                COLUMBIA
GATEWAY S-28, L.L.C.

                c/o Corporate
Office Properties, L.P.

                8815 Centre Park
Drive, Suite 400

                Columbia, Maryland
21045

                Attn: General
Counsel

                Telecopier: 410-740—1174

If
to Landlord (after 7/17/06):

                                                COLUMBIA
GATEWAY S-28, L.L.C.

                c/o Corporate
Office Properties, L.P.

                6711 Columbia
Gateway Drive, Suite 300

                Columbia, Maryland
21046

                Attn: General Counsel

If to Tenant:                              At the Premises
and to Tenant’s Notice Address.

 

Any party may designate a change of address
by written notice to the above parties, given at least ten (10) days before
such change of address is to become effective.

 

34.           Intentionally
Left Blank.

 

35.           Tenant’s
Improvements.

 

Except as otherwise provided
in this Lease, Tenant accepts the Premises in “as is” condition as of the date
of this Lease and Landlord shall not be required to make any improvements to
the Premises.  All work to be performed
by Tenant shall be referred to as “Tenant’s Work.” Tenant will perform, or
cause to be performed, all the construction work required to build out new
office, laboratory, and clean room space in the Premises, subject to the
allowance provisions set forth herein, additional Tenant monies, and in
conformance with Tenant’s to-be-completed plans for Tenant’s Work. Tenant shall
obtain Landlord’s prior written approval of the plans for Tenant’s Work, such
approval not to be unreasonably withheld, conditioned or delayed. Tenant and/or its agents and
subcontractors will be solely responsible to coordinate and perform the Tenant’s
Work. All such Tenant’s Work shall be performed by a to be selected general
contractor, as selected by Tenant, subject to the reasonable approval of
Landlord, (“General Contractor”) based on a to-be-determined competitive bid
format or on a negotiated basis, with either as elected by Tenant in its sole
discretion.

 

Tenant shall ensure that all
Tenant’s Work is performed in a good and workman-like manner and in full
compliance with all applicable governmental regulations and to current industry
standards. With respect to the Premises, Landlord and/or Landlord’s consultants
shall have the right to review, monitor, and approve all plans and materials
involved in the Tenant’s Work throughout the entire construction process,
provided that Landlord and/or Landlord’s consultants do not cause delays in
Tenant’s construction schedule. Tenant or its designees shall obtain all
permits, certificates and other governmental approvals from all governmental
entities having jurisdiction which are necessary for the completion of the
Tenant’s Work.  Landlord shall have the
right to charge Tenant a construction management/oversight fee, which fee shall
not exceed the actual and reasonable costs incurred by Landlord for reviewing
Tenant’s plans and specifications and inspecting the construction in the
ordinary course of work.

 

Provided Tenant waives its
termination rights pursuant to Section 55 of this Lease, Landlord grants Tenant
the Allowance to reimburse Tenant for a portion of the costs relating to the
Tenant’s Work. The Allowance shall be disbursed as follows:

 

(a)            Fifty percent (50%) of the Allowance shall be paid by
Landlord to Tenant upon completion of fifty percent (50%) of Tenant’s Work, to
reimburse Tenant for amounts actually paid by Tenant in connection therewith to
Tenant’s vendors, suppliers or contractors, provided that Landlord shall have
received (i) a certificate signed by Tenant and Tenant’s architect setting
forth (a) that the sum then requested was paid by Tenant to contractors,
subcontractors, materialmen, engineers and other persons who have rendered
services or furnished materials in connection with work on the Tenant Work, (b)
a complete description of such services and materials and the amounts paid or
to be paid to each of such persons in respect thereof, and (c)

 

19

 

that the work described in the certificate
has been completed substantially in accordance with the approved plans and specifications
and (ii) paid receipts or such other proof of payment as Landlord shall
reasonably require for all such work completed. Landlord shall reimburse Tenant
within thirty (30) days after Landlord’s receipt of a written request for
reimbursement from Tenant and shall debit the Allowance therefor.

 

(b)           The portion of Allowance not advanced pursuant to
subsection (a) above shall be paid by Landlord to Tenant upon completion of the
Tenant’s Work, to reimburse Tenant for amounts actually paid by Tenant in
connection therewith to Tenant’s vendors, suppliers or contractors, provided
that Landlord shall have received (i) a certificate in accordance with the
requirements of subsection (a) above, accompanied by lien waivers satisfactory
to Landlord executed by any contractors or subcontractors for whose labor or
material Tenant has previously been reimbursed pursuant to subsection (a)
above, (ii) paid receipts or such other proof of payment as Landlord shall
reasonably require evidencing that final payment has been made for all
materials and labor furnished in connection with the Tenant Work, and (iii) a
copy of a final unconditional certificate of occupancy evidencing that Tenant
may commence occupancy of the Premises for all purposes set forth in this
Lease.

 

The Allowance shall be used
exclusively for the design and completion of the Tenant’s Work made within the
entire Premises of the building. In no event shall less than 90% of the Tenant
Improvement Allowance be spent on Tenant’s Work within the Building. The
remainder of the Allowance may be further used for: a.) all customary hard and
soft construction costs, b.) telecommunications equipment and installation, c.)
building signage, manufacturing, and installation, d.) other specialty trade
fixtures and equipment, including suite premises security, cabling, and wiring
e.) legal fees and consultant fees, and f.) moving costs.

 

36.           Quiet
Enjoyment.  Tenant,
upon the payment of rent and the performance of all the terms of this Lease,
shall at all times during the Term peaceably and quietly enjoy the Premises
without any disturbance from Landlord or any other person claiming through
Landlord.

 

37.           Vacation
of Premises.  Tenant
shall vacate the Premises at the end of the Term.  If Tenant fails to
vacate at such time there shall be payable to Landlord an amount equal to one
hundred fifty percent (150%) of the monthly Base Rent stated in Section 1.1.6
paid immediately prior to the holding over period for each month or part of a
month that Tenant holds over, plus all other payments provided for herein, and
the payment and acceptance of such payments shall not consti­tute an extension
or renewal of this Lease.  In event of any such holdover, Landlord shall
also be entitled to all remedies provided by law for the speedy eviction of
tenants, and to the payment of all attorneys’ fees and expenses incurred in
connection therewith.

 

38.           Members’
Liability.  It is
understood that Landlord is a Maryland limited liability company. All
obligations of the Landlord hereunder are limited to the net assets of the Landlord
from time to time.  No member of Landlord, or of any successor
partnership, whether now or hereafter a member, shall have any personal
responsibility or liability for the obligations of Landlord hereunder.

 

39.           Separability.  If any
term or provision of this Lease or the application thereof to any person or
circumstances shall, to any extent, be invalid or unenforceable, the remainder
of this Lease or the application of such term or provision 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 term and
provision of this Lease shall be valid and be enforced to the fullest extent
permitted by law.

 

40.           Indemnification. Tenant shall
indemnify and hold harmless Landlord and all of its and their respective
partners, directors, officers, agents and employees from any and all liability,
loss, cost or expense arising from all third-party claims resulting from or in
connection with:

 

                (i)            the conduct or management of the
Premises or of any business therein, or any work or thing whatsoever done, or
any condition created in or about the Premises during the Term of this Lease or
during the period of time, if any, prior to the Commencement Date that Tenant
may have been given access to the Premises;

 

                (ii)           any act, omission or negligence of
Tenant or any of its subtenants or licensees or

 

20

 

its or their partners, directors, officers,
agents, employees, invitees or contractors;

 

                (iii)          any accident, injury or damage
whatever occurring in, at or upon the Premises; and

 

                (iv)          any breach or default by Tenant in the
full and prompt payment and performance of Tenant’s obligations under this
Lease;

 

together with all costs and expenses
reasonably incurred or paid in connection with each such claim or action or
proceeding brought thereon, including, without limitation, all reasonable
attorneys’ fees and expenses; provided, however Tenant’s
obligations under this Section 40 shall not apply to any liability, loss, cost
or expense arising from Landlord’s gross negligence of willful misconduct.

 

                In
case any action or proceeding is brought against Landlord and/or any of its and
their respective partners, directors, officers, agents or employees and such
claim is a claim from which Tenant is obligated to indemnify Landlord pursuant
to this Section 40, Tenant, upon notice from Landlord shall resist and
defend such action or proceeding (by counsel reasonably satisfactory to
Landlord). The obligations of Tenant under this Section shall survive
termination of this Lease.

 

41.           Captions.  All
headings anywhere contained in this Lease are intended for convenience or reference
only and are not to be deemed or taken as a summary of the provisions to which
they pertain or as a construction thereof.

 

42.           Brokers.  Tenant
represents that Tenant has dealt directly with, only with, the Broker as broker
in connection with this Lease, and Tenant warrants that no other broker
negotiated this Lease or is entitled to any commissions in connec­tion with
this Lease. Landlord shall pay the Broker pursuant to the terms of a separate
written agreement by and between Landlord and Broker.

 

43.           Recordation.  Tenant
covenants that it shall not, without Landlord’s prior written consent, which
consent may be withheld in Landlord’s sole and absolute discretion, record this
Lease or any memorandum of this Lease or offer this Lease or any memorandum of
this Lease for recordation.  If at any time Landlord or any mortgagee of
Landlord’s interest in the Premises shall require the recordation of this Lease
or any memorandum of this Lease, such recordation shall be at Land­lord’s
expense.  If at any time Tenant shall require the recorda­tion of this
Lease or any memoran­dum of this Lease, such recordation shall be at Tenant’s
expense.  If the recordation of this Lease or any memorandum of this Lease
shall be required by any valid governmental order, or if any government
authority having juris­diction in the matter shall assess and be entitled to
collect transfer taxes or documentary stamp taxes, or both transfer taxes and
documentary stamp taxes on this Lease or any memorandum of this Lease, Tenant
shall execute such acknowledgments as may be necessary to effect such
recordations and pay, upon request of Landlord, one half of all recording fees,
transfer taxes and documentary stamp taxes payable on, or in connection with
this Lease or any memorandum of this Lease or such recordation.

 

44.           Successors
and Assigns.  The
covenants, conditions and agreements contained in this Lease shall bind and
inure to the benefit of Landlord and Tenant, and their respective heirs,
personal representatives, successors and assigns (subject, however, to the
terms of Section 20 hereof).

 

45.           Integration
of Agreements.  This
writing is intended by the Parties as a final expression of their agreement and
is a complete and exclusive statement of its terms, and all negotiations,
considerations and representations between the Parties are incorporated. 
No course of prior dealings between the Parties or their affiliates shall be
relevant or admissible to supplement, explain, or vary any of the terms of this
Lease. Acceptance of, or acquiescence to, a course of performance rendered
under this Lease or any prior agreement between the Parties or their affiliates
shall not be relevant or admissible to determine the meaning of any of the
terms or covenants of this Lease.  Other than as specifically set forth in
this Lease, no representations, under­standings, or agreements have been made
or relied upon in the making of this Lease.

 

46.           Hazardous
Material; Indemnity. Tenant
further agrees to the following:

 

21

 

                46.1         As used in this Lease, the following
terms shall have the following meanings:

 

                46.1.1      “Environmental Laws” shall mean all
federal, state or local statutes, regulations, rules, ordinances, codes,
licenses, permits, orders, approvals, authorizations, agreements, ordinances,
administrative or judicial rulings or similar items relating to the protection
of the environment or the protection of human health, including, without
limitation, all requirements pertaining to reporting, licensing, permitting,
investigation and remediation of emissions, discharges, Releases or Threats of
Releases (as defined below) of Hazardous Materials into the air, surface water,
groundwater or land, or relating to the manufacture, processing, distribution,
use, treatment, storage, disposal, transport or handling of Hazardous Materials
or relating to storage tanks.

 

                46.1.2      “Hazardous Materials” shall mean (i) any
substance, gas, material or chemical which is defined as or included in the
definition of “hazardous substances”, “toxic substances”, “hazardous materials”,
“hazardous wastes” under any federal, state or local statute, law, or ordinance
or under the regulations adopted or guidelines promulgated pursuant thereto,
including, but not limited to, the Comprehensive Environmental Response
Compensation and Liability Act of 1980, as amended, 42 U.S.C. §§ 9061 et
seq. (“CERCLA”); the Hazardous Materials Transportation Act, as amended 49
U.S.C. §§ 1801, et seq.; the Resource Conservation and Recovery Act, as
amended, 42 U.S.C. §§ 6901, et seq.; (ii) radon gas in excess of four
(4) picocuries per liter, friable asbestos, urea formaldehyde foam insulation,
petroleum products, transformers or other equipment which contain dielectric
fluid containing levels of polychlorinated biphenyls in excess of federal,
state or local safety guidelines, whichever are more stringent; and (iii) any
other substance, gas, material or chemical, exposure to or release of which is
prohibited, limited or regulated by any governmental or quasi-governmental
entity or authority that asserts or may assert jurisdiction over the Premises, the
Building or the Property.

 

                46.1.3      “Hazardous Materials Inventory” shall mean
a comprehensive inventory of all Hazardous Materials used, generated, stored,
treated or disposed of by Tenant at the Premises.

 

                46.1.4      “Losses” shall mean all claims, liabilities,
obligations, losses (including, without limitation, diminution in the value of
the Premises, the Building, or the Property, damages for the loss or
restriction on use of rentable or usable space or of any amenity of the
Premises, the Building and/or the Property, damages arising from any adverse
impact on marketing of space), damages, penalties, fees, actions, judgments,
lawsuits, costs, expenses, disbursements, orders or decrees, including, without
limitation, attorneys’ and consultants’ fees and expenses.

 

                46.1.5      “Release” means any releasing, spilling,
leaking, pumping, pouring, emitting, emptying, discharging, injecting,
escaping, leaching, disposing or dumping into soil, surface waters,
groundwaters, land, stream sediments, surface or subsurface strata, ambient air
and any environmental medium comprising or proximate to and affecting the
Premises, the Building or the Property.

 

                46.1.6      “Threat of Release” means a substantial
likelihood of a Release which requires action to prevent or mitigate damage to
the soil, surface waters, groundwaters, land, stream sediments, surface or
subsurface strata, ambient air and any environmental medium comprising or
proximate to and affecting the Premises, the Building or the Property.

 

                46.2         Tenant shall not generate, use,
manufacture, recycle, handle, store, place, transport, treat, discharge or
dispose of any Hazardous Materials at, on, in or near the Premises, the
Building or the Property or cause any of the foregoing to occur at, on, in, or
near the Premises, the Building or the Property, except in compliance with all
applicable Environmental Laws in connection with Tenant’s use or occupancy of
the Premises and the Building, and promptly shall take all remedial action, at
Tenant’s sole cost and expense, but with Landlord’s prior approval, necessary
or desirable to remedy, clean-up and remove the presence of any Hazardous
Materials resulting from Tenant’s failure to comply with Environmental Laws.
Notwithstanding the foregoing, Tenant shall not be deemed to be prohibited from
using products containing Hazardous Materials so long as such products are
commonly found in an office

 

22

 

environment and are handled, stored, used and
disposed of in compliance with all Environmental Laws. In addition, Tenant
shall (i) obtain, maintain in full force and effect, and comply with, all
permits required under Environmental Laws; (ii) comply with all record keeping
and reporting requirements imposed by Environmental Laws concerning the use,
handling, treatment, storage, disposal or release of Hazardous Materials on the
Premises, the Building and the Property; (iii) report to Landlord any release
or discharge of Hazardous Materials within two (2) business days of such
discharge or release; (iv) provide to Landlord copies of all written reports
concerning such discharge of Hazardous Materials that are required to be filed
with governmental or quasi-governmental entities under Environmental Laws; (vi)
maintain and annually update a Hazardous Materials inventory with respect to
Hazardous Materials used, generated, treated, stored or disposed of at the
Premises, the Building and the Property; and (vii) make available to Landlord
for inspection and copying, at Landlord’s expense, upon reasonable notice and
at reasonable times, such Hazardous Materials inventory and any other reports,
inventories or other records required to be kept under Environmental Laws
concerning the use, generation, treatment, storage, disposal or release of
Hazardous Materials.

 

                46.3         Without limitation on any other
indemnities by or obligations of Tenant to Landlord under this Lease or
otherwise, Tenant hereby covenants and agrees to indemnify, defend and hold
harmless Landlord from and against any Losses incurred by Landlord as a result
of Tenant’s breach of any representation, covenant or warranty hereof; or as a
result of any claim, demand, liability, obligation, right or cause of action,
including, but not limited to governmental action or other third party action
(collectively, “Claims”), that is asserted against Landlord, the Premises, the
Building or the Property as a result of or which arises directly or indirectly,
in whole or in part, out of the Release, Threat of Release, discharge, deposit,
presence, treatment, transport, handling or disposal of any Hazardous Materials
at, on, under, in, about, or from the Premises, the Building or the Property
attributable to or arising out of the operations or activities or presence of
Tenant or any assignee, sublessee, agent or representative of Tenant at or
about the Premises, the Building or the Property. This indemnification of
Landlord and its Mortgagee(s) by Tenant includes, without limitation, costs
incurred in connection with any investigation of site conditions or any cleanup,
remedial, removal, or restoration work required by any federal, state or local
governmental agency or political subdivision because of Hazardous Material
present in the soil or ground water on or under the Building. Notwithstanding
the foregoing, Tenant’s indemnification in this Section 46.3 shall not apply to
any actions by Landlord on or about the Premises, the Building or the Property.

 

                46.4         The indemnities, warranties and
covenants contained in this Article shall survive termination of this Lease.

 

47.           Americans
With Disabilities Act. Notwithstanding
any other provisions contained in this Lease and with the purpose of
superseding any such provisions herein that might be construed to the contrary,
it is the intent of Landlord and Tenant that at all times while this Lease
shall be in effect that the following provisions shall be deemed their specific
agreement as to how the responsibility for compliance (and cost) with the
Americans With Disabilities Act and amendments to same (“ADA”), both as to the
Premises and the Property, shall be allocated between them, namely:

 

                47.1         To the best of Landlord’s knowledge,
Landlord represents that the Building and the land on which the Premises are
situated are in material compliance with the ADA. Tenant shall bear any and all
costs associated with assuring the continual compliance with the ADA.

 

                47.5         Modifications, alterations and/or other
changes required to and within the Premises (after the initial construction of
same) in order to comply with the ADA, whether capital in nature or non-capital
in nature, shall be the responsibility of Tenant and at its cost and expense;
unless the changes are structural in nature and result from the original design
of the Building or any condition therein prior to the commencement date of the Broadwing
Sublease, in which instance they shall be the responsibility of Landlord and at
its cost and expense.

 

                Each
party hereto shall indemnify and hold harmless the other party from any and all
liability, loss, cost or expense arising as a result of a party not fulfilling
its obligations as to compliance with the ADA as set forth in this Section.

 

23

 

48.           Several
Liability. If Tenant
shall be one or more individuals, corporations or other entities, whether or
not operating as a partnership or joint venture, then each such individual,
corporation, entity, joint venturer or partner shall be deemed to be both
jointly and severally liable for the payment of the entire rent and other
payments specified herein.

 

49.           Financial
Statements. Tenant
represents and warrants to Landlord that the financial statements heretofore
delivered by Tenant to Landlord are true, correct and complete in all respects,
have been prepared in accordance with generally accepted accounting principles,
and fairly represent the financial condition of Tenant as of the date thereof,
and that no material change has thereafter occurred in the financial conditions
reflected therein. Within fifteen (15) days after request from Landlord, Tenant
agrees to deliver to Landlord such future financial statements and other
information as Landlord from time to time may reasonably request.

 

50.           Definition of “Day”
and “Days” . As used in
the Lease, the terms “day” and “days” shall refer to calendar days unless
specified to the contrary; provided, however, that if the deadline established
for either party’s performance hereunder occurs on a Saturday, Sunday or
banking holiday in the State of Maryland, the date of performance shall be
extended to the next occurring business day.

 

51.           Tenant’s
Anti-Terrorism Representation. Tenant hereby
represents and warrants that neither
Tenant, nor any of its respective officers, directors, shareholders, partners,
members or affiliates (including without limitation indirect holders of equity
interests in Tenant) is or will be an entity or person: (i) that is listed in
the Annex to, or is otherwise subject to the provisions of Executive Order
13224 issued on September 24, 2001 (“EO13224”);      (ii) whose name appears on the United States Treasury Department’s
Office of Foreign Assets Control (“OFAC”) most current list of “Specifically
Designated National and Blocked Persons” (which list may be published from time
to time in various mediums including, but not limited to, the OFAC website);
(iii) who commits, threatens to commit or supports “terrorism”, as that term is
defined in EO13224; (iv) is subject to sanctions of the United States
government or is in violation of any federal, state, municipal or local laws,
statutes, codes, ordinances, orders, decrees, rules or regulations relating to
terrorism or money laundering, including, without limitation, EO13224 and the
Uniting and Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism Act of 2001; or (v) who is otherwise affiliated with any entity or person listed above (any
and all parties or persons described in clauses (i) — (v) above are herein
referred to as a “Prohibited Person”).

 

                Neither Tenant, nor any of their respective officers,
directors, shareholders, partners, members or affiliates (including without
limitation indirect holders of equity interests in Tenant) shall (a) conduct
any business, nor engage in any transaction or dealing, with any Prohibited
Person, including, but not limited to, the making or receiving of any contribution
of funds, goods, or services, to or for the benefit of a Prohibited Person, or
(b) engage in or conspire to engage in any transaction that evades or avoids,
or has the purpose of evading or avoiding, or attempts to violate, any of the
prohibitions set forth in EO13224. Tenant agrees to indemnify and hold Landlord
harmless from and against all claims, lawsuits, costs (including reasonable
counsel fees), losses, damages and liabilities that arise out of or relate to
Landlord’s engagement in any activity associated with either (a) or (b) set
forth above. If Tenant violates the provisions of this Section,
such violation shall be considered an immediate Event of Default and Landlord
shall not be required to grant Tenant any cure period prior to exercising its rights
under this Lease, including, without limitation, termination of the Lease.

 

52.           Exterior
Signage. Tenant, at
Tenant’s expense, shall have the right to install an exterior back-lighted sign
or back-lighted logo on the top ribbon of the Building and a monument sign at
the entrance to the Building, provided that (i) there is no Event of Default
outstanding at anytime, (ii) Tenant obtains Landlord’s prior written approval,
such approval not to be unreasonably withheld, with regard to the size,
location, and method of installation of the signage, (iii) the Lease has not
been amended to reduce the area of the Premises, and (iv) Tenant remains open
for business in the Premises. Tenant, at Tenant’s expense, shall maintain the
signage, and obtain all required permits from any governmental authorities. At
the expiration or sooner termination of this Lease, Tenant shall remove the
exterior signage on the Building and restore the Building’s surface to that
condition which existed immediately prior to the installation of the signage. In
addition, if, after installation of the signage, any of the conditions

 

24

 

set forth in subsections (i) through (iv)
inclusive of the first sentence of this paragraph are not satisfied, Tenant, at
Tenant’s expense, shall remove the signage upon fifteen (15) days’ advance
written notice from Landlord and restore the Building’s surface to that
condition which existed immediately prior to the installation of the signage.

 

53.           Telecommunications
Equipment. Tenant shall
have the non-exclusive right to enter upon and utilize the roof of the Building
for the purposes of installing, maintaining and repairing any equipment or
utilities required in its operation of its business in the Premises; provided
that (i) such equipment is used solely in connection with Tenant’s business in
the Premises and is not available for use by third-parties, (ii) Tenant submits
to Landlord for Landlord’s prior written approval, such approval not to be
unreasonably withheld, conditioned or delayed, the desired location on the roof
to install the equipment and the make, model and specifications of the
equipment, (iii) Tenant, at Tenant’s expense, shall install, maintain and
remove the equipment  in coordination with Landlord’s rooftop consultant;
provided, however, that Landlord, at Tenant’s expense, shall have the right,
but not the obligation, to install, maintain and/or remove the equipment, and
(iv) Tenant shall indemnify and hold Landlord, its successors, assigns, agents,
licensees and invitees harmless from any and all damages, costs, claims,
expenses, actions (including reasonable attorneys’ fees) in connection with the
equipment, unless resulting form Landlord’s negligence. Upon the expiration or
sooner termination of the Term, Tenant shall be responsible for removing the
equipment from the roof and for any costs to repair the damage to the roofing
system resulting from such removal.

 

54.           Parking. During the
Term, Landlord, for no additional charge, shall provide Tenant parking spaces
at a ratio of 4 parking spaces per 1,000 rentable square feet in the Premises.

 

55.           Tenant’s
Termination Right Tenant shall
have the right to terminate this Lease on or be fore that date which is six (6)
months after the date of this Lease by delivering written notice to Landlord,
together with payment of a termination fee in the amount of $130,000.00 (the “Termination
Fee”). Upon receipt of Tenant’s notice and the Termination Fee, Landlord shall
return the initial Letter of Credit to Tenant.

 

                IN WITNESS
WHEREOF, Landlord and Tenant have respectively affixed their hands and seals to
this Lease as of the day and year first above written.

 

	
  WITNESS OR ATTEST:

  	
   

  	
  LANDLORD:

  
	
   

  	
   

  	
  COLUMBIA GATEWAY S-28, L.L.C.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  (SEAL)

  
	
   

  	
   

  	
   

  	
  Name: Roger A. Waesche, Jr.

  	
   

  
	
   

  	
   

  	
   

  	
  Title: Executive Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WITNESS OR ATTEST:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TENANT:

  	
   

  
	
   

  	
   

  	
  OSIRIS THERAPEUTICS, INC.

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  (SEAL)

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

 

25

 

STATE OF MARYLAND,                           ,
TO WIT:

 

                I HEREBY CERTIFY,
that on this    day of           , 2006, before me, the
undersigned Notary Public of the State, personally appeared ROGER A. WAESCHE,
JR., who acknowledged himself to be the Executive Vice President of COLUMBIA
GATEWAY S-28, L.L.C., a Maryland limited liability company, known to me (or
satisfactorily proven) to be the person whose name is subscribed to the within
instrument, and acknowledged that he executed the same on behalf of the
corporation for the purposes therein contained as the duly authorized Executive
Vice President of the corporation by signing the name of the corporation by
himself as such Executive Vice President.

 

                WITNESS my hand
and Notarial Seal.

 

	
   

  	
   

  
	
   

  	
  Notary Public

  

 

My Commission Expires:

 

 

STATE OF MARYLAND,              , TO WIT:

 

                I HEREBY CERTIFY,
that on this    day of          , 2006, before me, the undersigned
Notary Public of the State, personally appeared               , known to me (or satisfactorily proven)
to be the person whose name is subscribed to the within instrument, and
acknowledged himself/herself to be the       of OSIRIS THERAPEUTICS, INC. a _________
corporation, and that he/she, as such         ,
being authorized so to do, executed the foregoing instrument on behalf of the
Corporation by himself/herself as such                        .

 

                WITNESS my hand
and Notarial Seal.

 

	
   

  	
   

  
	
   

  	
  Notary Public

  

 

 

My Commission Expires:

 

 

26

 

EXHIBIT “A”

to Agreement of Lease by and between

COLUMBIA GATEWAY S-28, L.L.C., Landlord

and OSIRIS THERAPEUTICS, INC., Tenant

 

FLOOR PLAN

 

[TO BE ATTACHED]

 

 

27

 

EXHIBIT “B”

to Agreement of Lease by and between

COLUMBIA GATEWAY S-28, L.L.C., Landlord

and OSIRIS THERAPEUTICS, INC., Tenant

 

RULES AND REGULATIONS

 

                The following Rules and Regulations shall apply at such time as the
Building becomes a multi-tenant Building.

 

                To the extent that any of the following Rules and
Regulations, or any Rules and Regulations subsequently enacted conflict with
the provisions of the Lease, the provisions of the Lease shall control.

 

                1. 
Tenant shall not obstruct or permit its agents, clerks or servants to obstruct,
in any way, the sidewalks, entry passages, corridors, halls, stairways or
elevators of the Building, or use the same in any other way than as a means of
passage to and from the offices of Tenant; bring in, store, test or use any
materials in the Building which could cause a fire or an explosion or produce
any fumes or vapor; make or permit any improper noises in the Building; smoke
in the elevators, the Premises, the Building or the Common Areas except in the exterior
areas specifically designated by Landlord; throw substances of any kind out of
the windows or doors, or down the passages of the Building, in the halls or
passageways; sit on or place anything upon the window sills; or clean the
windows.

 

                2. 
Waterclosets and urinals shall not be used for any purpose other than those for
which they were constructed; and no sweepings, rubbish, ashes, newspaper or any
other substances of any kind shall be thrown into them.  Waste and
excessive or unusual use of electricity or water is prohibited.

 

                3. 
Tenant shall not (i) obstruct the windows, doors, partitions and lights that
reflect or admit light into the halls or other places in the Building, or (ii)
inscribe, paint, affix, or otherwise display signs, advertisements or notices
in, on, upon or behind any windows or on any door, partition or other part of
the interior or exterior of the Building without the prior written consent of
Landlord which shall not be unreasonably withheld.  If such consent be
given by Landlord, any such sign, advertisement, or notice shall be inscribed,
painted or affixed by Landlord, or a company approved by Landlord, but the cost
of the same shall be charged to and be paid by Tenant, and Tenant agrees to pay
the same promptly, on demand.

 

                4. 
No contract of any kind with any supplier of towels, water, ice, toilet
articles, waxing, rug shampooing, venetian blind washing, furniture polishing,
lamp servicing, cleaning of electrical fixtures, removal of waste paper,
rubbish or garbage, or other like service shall be entered into by Tenant, nor
shall any vending machine of any kind be installed in the Building, without the
prior written consent of Landlord, which consent of Landlord shall not be
unreasonably withheld.

 

                5. 
When electric wiring of any kind is introduced, it must be connected as
directed by Landlord, and no stringing or cutting of wires shall be allowed,
except with the prior written consent of Landlord which shall not be
unreasonably withheld, and shall be done only by contractors approved by
Landlord.  The number and location of telephones, telegraph instruments,
electric appliances, call boxes, etc., shall be subject to Landlord’s
approval.  No tenants shall lay linoleum or other similar floor covering
so that the same shall be in direct contact with the floor of the Premises; and
if linoleum or other similar floor covering is desired to be used, an
interlining of builder’s deadening felt shall be first affixed to the floor by
a paste or other material, the use of cement or other similar adhesive material
being expressly prohibited.

 

                6. 
No additional lock or locks shall be placed by Tenant on any door in the
Building, without prior written consent of Landlord.  Two keys will be
furnished Tenant by Landlord; two additional keys will be supplied to Tenant by
Landlord, upon request, without charge; any additional keys requested by Tenant
shall be paid for by Tenant.  Tenant, its agents and employees, shall not
have any duplicate keys made and shall not change any locks.  All keys to
doors and washrooms shall be returned to Landlord at the termination of the
tenancy, and in the

 

B-1

 

event of any loss of any keys furnished,
Tenant shall pay Landlord the cost thereof.

 

                7. 
Tenant shall not employ any person or persons other than Landlord’s janitors
for the purpose of cleaning the Premises, without prior written consent of
Landlord which shall not be unreasonably withheld.  Landlord shall not be
responsible to Tenant for any loss of property from the Premises however
occurring, or for any damage done to the effects of Tenant by such janitors or
any of its employees, or by any other person or any other cause.

 

                8. 
No bicycles, vehicles or animals of any kind (other than animals to assist the
disabled) shall be brought into or kept in or about the Premises.

 

                9. 
Tenant shall not conduct, or permit any other person to conduct, any auction
upon the Premises; manufacture or store goods, wares or merchandise upon the
Premises, without the prior written approval of Landlord, except the storage of
usual supplies and inventory to be used by Tenant in the conduct of its
business; permit the Premises to be used for gambling; make any unusual noises
in the Building; permit to be played any musical instrument in the Premises;
permit to be played any radio, television, recorded or wired music in such a
loud manner as to disturb or annoy other tenants; or permit any unusual odors
to be produced upon the Premises.  Tenant shall not permit any portion of
the Premises to be used for the storage, manufacture, or sale of intoxica­ting
beverages, narcotics, tobacco in any form, or as a barber or manicure shop.

 

                10. 
No awnings or other projections shall be attached to the outside walls of the
Building.  No curtains, blinds, shades or screens shall be attached to or
hung in, or used in connection with, any window or door of the Premises,
without the prior written consent of Landlord which consent shall not be
unreasonably withheld.  Such curtains, blinds and shades must be of a
quality, type, design, and color, and attached in a manner reasonably approved
by Landlord.

 

                11. 
Canvassing, soliciting and peddling in the Building are prohibited, and Tenant
shall cooperate to prevent the same.

 

                12. 
There shall not be used in the Premises or in the Building, either by Tenant or
by others in the delivery or receipt of merchandise, any hand trucks except
those equipped with rubber tires and side guards, and no hand trucks will be
allowed in passenger elevators.

 

                13. 
Tenant, before closing and leaving its Premises, shall ensure that all entrance
doors to same are locked.

 

                14. 
Landlord shall have the right to prohibit any adver­tising by Tenant which in
Landlord’s opinion tends to impair the reputation of the Building or its
desirability as a building for offices, and upon written notice from Landlord,
Tenant shall refrain from or discontinue such advertising.

 

                15. 
Landlord hereby reserves to itself any and all rights not granted to Tenant
hereunder, including, but not limited to, the following rights which are
reserved to Landlord for its purposes in operating the Building:

 

(a) the exclusive right to
the use of the name of the Building for all purposes, except that Tenant may
use the name as its business address and for no other purpose;

 

(b) the right to change the
name or address of the Building, without incurring any liability to Tenant for
so doing;

 

(c) the right to install and
maintain a sign or signs on the exterior of the Building;

 

                (d)
the exclusive right to use or dispose of the use of the roof of the Building;

 

                (e)
the non-exclusive right to use the area above the ceiling of the Premises for
the purpose of installing and maintaining telecommunications, water lines,
utility lines, other conduit, sprinklers, drainlines, ductwork and HVAC
connections and any other equipment

 

B-2

 

necessary to provide services to any area in
the Building;

 

(f) the right to limit the
space on the directory of the Building to be allotted to Tenant; and

 

(g) the right to grant to
anyone the right to conduct any particular business or undertaking in the
Building.

 

                16. 
As used herein the term “Premises” shall mean and refer to the “Premises” as
defined in Section 1 of the Lease.

 

                17.
Tenant shall not operate space heaters or other heating or ventilating
equipment without the express prior written consent of Landlord in each
instance first obtained. Tenant shall not install or operate any electrical
equipment, appliances or lighting fixtures in the Premises which are not listed
and labeled by Underwriter’s Laboratories or other testing organization
acceptable to Landlord.

 

 

B-3

 

EXHIBIT “C”

to Agreement of Lease by and between

COLUMBIA GATEWAY
S-28, L.L.C., Landlord

and OSIRIS THERAPEUTICS, INC., tenant

 

[Intentionally
deleted]

 

 

 

EXHIBIT “D”

to Agreement of Lease by and between

COLUMBIA GATEWAY S-28, L.L.C., Landlord

and OSIRIS THERAPEUTICS, INC., Tenant

 

ESTOPPEL CERTIFICATE

 

 

 

                                                                                                                                                                                                                                                Date

 

 

	
  [INSERT LENDER]

  	
  Corporate Office
  Properties, L.P.

  
	
   

  	
   c/o 8815 Centre Park Drive

  
	
   

  	
  Suite 400

  
	
   

  	
  Columbia, Maryland 21045

  
	
   

  	
  Attn: General Counsel

  

 

                             RE:

 

Ladies and Gentlemen:

 

                It
is our understanding that [INSERT LENDER] has placed a mortgage on the subject
premises and that both COPLP and [INSERT LENDER] have required this Certificate
of the undersigned to be executed as a condition precedent to the transaction
proceeding.

 

                The
undersigned, as tenant, under that certain Lease dated ________________, made
with COLUMBIA GATEWAY S-28, L.L.C., as Landlord, hereby ratifies the Lease and
certifies that:

 

a.                                       the “Commencement
Date” of the Lease is ____________________ ; and

b.                                      the
undersigned is presently solvent and free from reorganization and/or bankruptcy
and is in occupancy, open, and conducting business in the Premises;

c.                                       the
operation and use of the Premises do not involve the generation, treatment,
storage, disposal or release of a hazardous substance or a solid waste into the
environment, other than to the extent necessary to conduct its ordinary course
of business in the Premises and in accordance with all applicable environmental
laws, and that the Premises are being operated in accordance with all
applicable environmental laws, zoning ordinances and building codes; and

d.                                      the current
base rental payable pursuant to the terms of the Lease is $__________ per
annum;

e.                                       the Lease is
in full force and effect and has not been assigned, modified, supplemented or
amended in any way (except by agreement(s) dated _________), and neither party
thereto is in default thereunder; and

f.                                         the Lease
described above represents the entire agreement between the parties as to the
leasing of the Premises; and

g.                                      the current
term of the Lease expires on ____________ ; and

h.                                      all
conditions under the Lease to be performed by the Landlord have been satisfied,
including, without limitation, all co-tenancy requirements thereunder, if any;
and

i.                                          all required
contributions by Landlord to tenant on account of tenant’s improvements have
been received; and

 

D-1

 

j.                                          on this date
there are no existing defenses or offsets, claims or counterclaims which the
undersigned has against the enforcement of the Lease by the Landlord; and

k.                                       no rental
has been paid in advance and no security (except the security deposit in the
amount of $__________) has been deposited with Landlord; and

l.                                          tenant’s
floor area is _____________ rentable square feet; and

m.                                    the most
recent payment of current basic rental was for the payment due on
_______________ , 20___ , and all basic rental and additional rental payable
pursuant to the terms of the Lease have been paid up to such date; and

n.                                      the
undersigned acknowledges notice that Landlord’s interest under the Lease and
the rent and all other sums due thereunder have been assigned to [INSERT
LENDER] as part of the security for a mortgage loan by [INSERT LENDER] to
COPLP. In the event [INSERT LENDER], as lender, notifies the undersigned of a
default under the mortgage and demands that the undersigned pay its rent and
all other sums due under the Lease to [INSERT LENDER], tenant agrees that it
shall pay its rent and all such other sums to lender.

	
   

  	
  Very truly yours,

  
	
   

  	
  OSIRIS THERAPEUTICS, INC.

  
	
   

  	
  (Tenant)

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Its:

  	
   

  

 

 

D-2

 

EXHIBIT “E”

to Agreement of Lease by and between

COLUMBIA GATEWAY S-28, L.L.C., Landlord

and OSIRIS THERAPEUTICS, INC., Tenant

 

FORM OF

SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT

 

This instrument was prepared by and upon recordation
should be

returned to:

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

SUBORDINATION,
NON-DISTURBANCE & ATTORNMENT AGREEMENT

 

                THIS
SUBORDINATION, NON-DISTURBANCE & ATTORNMENT AGREEMENT (“Agreement”) made and entered into this ______ day of ______________,
2003, by and among COLUMBIA GATEWAY S-28, L.L.C., a
____________________________, whose mailing address is c/o 8815 Centre Park
Drive, Suite 400, Columbia, Maryland 21045 (the “Landlord”), OSIRIS
THERAPEUTICS, INC., a ________________________, whose mailing address is
_____________________________________________ (the ATenant@), and STATE FARM LIFE INSURANCE
COMPANY, an Illinois corporation, whose mailing address is One State
Farm Plaza, Bloomington, Illinois 61710-0001 (“State Farm”);

 

WITNESSETH:

 

                WHEREAS, on even date herewith, Tenant has entered
into a Sublease of the Premises with the existing tenant, Broadwing
Corporation, pursuant to which Tenant shall be a subtenant through May 31, 2009
(the “Sublease”);

 

                WHEREAS,
as a condition to entering into the Sublease, Tenant has requested for State
Farm to grant Tenant the same rights during its period of subtenancy as it is
willing to do during its direct tenancy;

 

                WHEREAS,
Landlord and Tenant have heretofore entered into
a certain lease (the “Prime Lease”) dated _________________, 2006, with respect
to and governing the terms of Tenant’s use and occupancy of all or a portion of
certain real estate and improvements legally described on Exhibit A
attached hereto and made a part hereof (the “Premises”); and

 

                WHEREAS,
as used herein, the term “Lease” shall refer collectively to the Sublease and
the Prime Lease;

 

                WHEREAS,
State Farm, as a condition to making a loan to
Landlord in the principal amount of $27,750,000.00 (the “Loan”), which is
secured by a Mortgage and Security Agreement executed by Landlord to and in
favor of State Farm (the “Mortgage”) constituting a first lien upon and
encumbering the Premises, and further secured by an Assignment of Rents and
Leases executed by Landlord to and in favor of State Farm (the “Assignment of
Rents and Leases”) assigning to State Farm all leases of and all rents derived
from the Premises, has required the execution of this Agreement.

 

                NOW,
THEREFORE, in consideration of the mutual
covenants and agreements herein contained and to induce State Farm to make said
Loan and to accept said Mortgage upon said Premises as security for the Loan
and in consideration of the sum of One Dollar ($1.00) by each of the parties
hereto paid to the other, receipt and sufficiency of which are hereby
acknowledged, the parties hereto do hereby covenant, stipulate and agree as
follows:

 

E-1

 

                1.             The Lease, and any and all
modifications thereof and amendments thereto, all of Tenant’s rights thereunder
and Tenant’s leasehold interest and estate in the Premises shall be and are
hereby made junior, inferior, subordinate and subject in all respects to the
lien and encumbrance of the Mortgage on the Premises and to all renewals,
modifications, consolidations, replacements and extensions of the Mortgage, to
the full extent of the principal sum secured thereby, all interest thereon and
all other sums due or hereafter becoming due thereunder

 

                2.             Tenant agrees that it shall
promptly deliver or mail to State Farm a copy of each written notice given by
Tenant to Landlord of a default by the Landlord under the Lease. Tenant further
agrees that if, within the time provided in the Lease to cure defaults
thereunder, State Farm, at its option, shall elect to perform or cause to be
performed the obligations with respect to which Landlord is in default under
the Lease, as specified in such written notice, any right of Tenant to
terminate the Lease by reason or on account of such default of Landlord shall
cease and be null and void.

 

                3.             Tenant is advised and hereby
acknowledges that the Mortgage, Assignment of Rents and Leases and other
documents which evidence and secure the Loan (collectively the “Loan Documents”)
grant and provide to State Farm the right to collect rents and other sums
payable under the Lease (collectively, the “Rents”) directly from Tenant upon
the occurrence of an Event of Default by Landlord under the Loan Documents;
Landlord and Tenant hereby agree that upon Tenant’s receipt from State Farm of
written notice of the occurrence of any Event of Default by Landlord under the
Loan Documents, Tenant shall thereafter pay all Rents directly to State Farm
(or as State Farm shall direct).

 

                4.             State Farm agrees that in the event
it should become necessary for State Farm to foreclose the Mortgage, and
provided that Tenant is not in default of its obligations under the Lease,
Tenant shall be entitled to continue in possession of the Premises undisturbed.
State Farm further agrees that unless required by law, State Farm will not join
Tenant as a defendant in any such foreclosure proceedings, and if such joinder
is required by law, State Farm will not seek to terminate the Lease or Tenant’s
possession of the Premises.

 

                5.             It is further agreed that in the
event State Farm should succeed to the interest of the Landlord under the
Lease, State Farm agrees to be bound to the Tenant under the Lease. The Tenant
agrees from and after such event to attorn to State Farm. From the date of
acquisition, Tenant shall have the same rights and remedies against and
obligations to State Farm that Tenant has against and to the prior Landlord for
any default that is in existence and continues beyond the date of acquisition,
as if the default occurred on the date of State Farm=s acquisition. However, State Farm shall not be:

 

(a)                                                                                  liable for the consequences of any act or omission of the prior
Landlord that occurred prior to State Farm’s acquisition;

 

(b)                                                                                 subject to any offsets or defenses which the Tenant might have against
the prior Landlord, for acts, omissions, or defaults which occurred prior to
State Farm=s acquisition;

 

(c)                                                                                  bound by any rent or additional rent which the Tenant might have paid
in advance for more than one month;

 

(d)                                                                               bound by any amendment or modification of the Lease made after the date
of this Agreement without State Farm’s prior written consent; or

 

(e)                                                                                  liable for any security deposit, unless actually received by State Farm
from the prior Landlord.

 

                6.             Tenant agrees that notwithstanding
anything to the contrary contained in this Agreement, in the Lease or in any
other instrument, any interest of the Tenant in or under any option to purchase
or right of first refusal of, or with respect to all or any part of the
Premises is hereby specifically subordinated to the rights of State Farm under
the Mortgage and other Loan

 

E-2

 

Documents and such option to purchase or right of the
first refusal shall not be binding upon State Farm, its successors and assigns.

 

                7.             This Agreement shall be binding
upon and inure to the benefit of the parties hereto and shall also bind and
benefit the heirs, legal representatives, successors and assigns of the
respective parties hereto, and all covenants, conditions and agreements herein
contained shall be construed as running with the title to the land comprising
the Premises.

 

                8.             Landlord and Tenant hereby waive to
the fullest extent permitted by applicable law, the right to trial by jury in
any action, proceeding or counterclaim filed by any party, whether in contract,
tort or otherwise relating directly or indirectly to this Agreement or any acts
or omissions of the Landlord and Tenant in connection therewith or contemplated
thereby.

 

                IN
WITNESS WHEREOF, the parties hereto have caused
these presents to be executed as of the day and year first above written.

 

	
  WITNESS:

  	
   

  	
  COLUMBIA GATEWAY S-28, L.L.C.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
   

  	
  Name: 

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WITNESS:

  	
   

  	
  OSIRIS THERAPEUTICS, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
   

  	
  Name: 

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WITNESS:

  	
   

  	
  STATE FARM LIFE INSURANCE

  
	
   

  	
   

  	
  COMPANY,

  
	
   

  	
   

  	
  an Illinois corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  One State Farm Plaza

  
	
   

  	
   

  	
  Bloomington, Illinois 61710-0001

  
	
   

  	
   

  	
  Corporate Law-Investments E-8

  
	
   

  	
   

  	
  Attn: (Name of Attorney)

  

 

 

E-3

 

 

STATE
OF MARYLAND,                 , TO WIT:

 

                I HEREBY CERTIFY, that on this    day of           , 2006, before me, the
undersigned Notary Public of the State, personally appeared ROGER A. WAESCHE,
JR., who acknowledged himself to be the Executive Vice-President of COLUMBIA
GATEWAY S-28, L.L.C., a Maryland limited liability company, known to me (or
satisfactorily proven) to be the person whose name is subscribed to the within
instrument, and acknowledged that he executed the same on behalf of the
corporation for the purposes therein contained as the duly authorized Executive
Vice President of the corporation by signing the name of the corporation by
himself as such Executive Vice President.

 

                WITNESS my hand and Notarial Seal.

 

	
   

  	
   

  

 

                                                Notary Public

My
Commission Expires:                 

 

STATE
OF                                ,
COUNTY OF                    ,
TO WIT:

 

                I HEREBY CERTIFY, that on this      day
of               ,
2006, before me, the undersigned Notary Public of the State, personally
appeared                 ,
known to me (or satisfactorily proven) to be the person whose name is
subscribed to the within instrument, and acknowledged himself/herself to be the
                                   
of OSIRIS THERAPEUTICS, INC., a                            ,
and that he/she, as such               ,
being authorized so to do, executed the foregoing instrument on behalf of the
limited liability company by himself/herself as such                                        .

 

                WITNESS my hand and Notarial
Seal.

 

 

                                                Notary Public

My
Commission Expires:

 

STATE
OF                                      ,
COUNTY OF               ,
TO WIT:

 

                I HEREBY CERTIFY, that on this    day
of               
, 2006, before me, the undersigned Notary Public of the State, personally
appeared               ,
known to me (or satisfactorily proven) to be the person whose name is
subscribed to the within instrument, and acknowledged himself/herself to be the
              
of STATE FARM LIFE INSURANCE COMPANY, an Illinois corporation, and that he/she,
as such               ,
being authorized so to do, executed the foregoing instrument on behalf of the
corporation by himself/herself as such                            .

 

                WITNESS my hand and Notarial
Seal.

 

	
   

  	
   

  

 

 

                                                Notary Public

My
Commission Expires:               

 

E-4

 

EXHIBIT “F”

to Agreement of Lease by and between

COLUMBIA GATEWAY S-28, L.L.C., Landlord

and OSIRIS THERAPEUTICS, INC., Tenant

 

 

FORM OF COMMENCEMENT DATE AGREEMENT

 

COMMENCEMENT DATE AGREEMENT

 

                THIS COMMENCEMENT DATE AGREEMENT is made this             
day of                 ,
2006, between COLUMBIA GATEWAY S-28, L.L.C. (“Landlord”) and OSIRIS
THERAPEUTICS, INC. (“Tenant”).

 

                Landlord and Tenant have entered into a certain
Agreement of Lease (the “Lease”) dated             ,
2006 demising certain space consisting of             
rentable square feet in the in the building located at and having an address of
                        
(the “Building”). All of the capitalized terms herein shall have the same
respective definitions as set forth in the Lease.

 

                Pursuant to the provisions of Article 3 of the Lease,
Landlord and Tenant, intending to be legally bound hereby, acknowledge and
agree that the Commencement Date shall be the             
day of             ,
2006, and that the term of the Lease shall end on the             
day of             ,
20  , at 11:59 p.m., unless sooner terminated or extended, as
provided in the Lease. As supplemented hereby, the Lease shall continue in full
force and effect.

 

                IN WITNESS WHEREOF, the parties hereto have duly
executed this Commencement Date Agreement on this             
day of             ,
2006.

 

	
  WITNESS OR ATTEST:

  	
   

  	
  LANDLORD:

  
	
   

  	
   

  	
  COLUMBIA GATEWAY S-28, L.L.C.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  (SEAL)

  
	
   

  	
   

  	
   

  	
  Name: Roger A. Waesche,
  Jr.

  	
   

  
	
   

  	
   

  	
   

  	
  Title: Executive Vice
  President

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WITNESS OR ATTEST:

  	
   

  	
  TENANT:

  
	
   

  	
   

  	
  OSIRIS THERAPEUTICS, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  (SEAL)

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

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