Document:

exv10w36

 

Exhibit 10.36

EXECUTION

GROUND LEASE

MASSACHUSETTS DEVELOPMENT FINANCE AGENCY

as Landlord

and

EVERGREEN SOLAR, INC.

as Tenant

Dated as of November 20, 2007

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE 1
	 	 	 	 
	Land and Term
	 	 	1	 
	 
	 	 	 	 
	1.1. The Land
	 	 	1	 
	1.2. Condition of the Land
	 	 	2	 
	1.3. Initial Term
	 	 	3	 
	1.4. Delivery and Acceptance of Possession
	 	 	3	 
	1.5. Extension of the Initial Term
	 	 	3	 
	1.6. The Project/The Land
	 	 	3	 
	 
	 	 	 	 
	ARTICLE 2
	 	 	 	 
	Permitted Uses; Compliance with Laws
	 	 	3	 
	 
	 	 	 	 
	2.1. Permitted Uses; Continuous Operation upon Completion of Initial Improvements
	 	 	3	 
	2.2. Compliance with Laws
	 	 	3	 
	 
	 	 	 	 
	ARTICLE 3
	 	 	 	 
	Base Rent and Additional Rent
	 	 	5	 
	 
	 	 	 	 
	3.1. Base Rent
	 	 	5	 
	3.2. Payment of Base Rent
	 	 	6	 
	3.3. Method of Payment
	 	 	6	 
	3.4. Base Rent Net to Landlord
	 	 	6	 
	3.5. Additional Rent
	 	 	6	 
	3.6. No Release of Obligations
	 	 	7	 
	 
	 	 	 	 
	ARTICLE 4
	 	 	 	 
	Real Estate Taxes
	 	 	7	 
	 
	 	 	 	 
	4.1. Impositions
	 	 	7	 
	4.2. Impositions Assessed Against the Landlord
	 	 	8	 
	4.3. Tenant’s Failure to Promptly Pay Impositions
	 	 	8	 
	4.4. Validity of Impositions
	 	 	8	 
	 
	 	 	 	 
	ARTICLE 5
	 	 	 	 
	Insurance
	 	 	8	 
	 
	 	 	 	 
	5.1. Liability, Hazard and Other Insurance
	 	 	8	 
	5.2. Indemnity
	 	 	10	 
	5.3. Waiver of Subrogation
	 	 	11	 
	5.4. Landlord’s Insurance
	 	 	11	 
	 
	 	 	 	 
	ARTICLE 6
	 	 	 	 
	Utilities and Services
	 	 	11	 
	 
	 	 	 	 
	ARTICLE 7
	 	 	 	 
	Repairs and Maintenance
	 	 	11	 

 

 

	 	 	 	 	 
	ARTICLE 8
	 	 	 	 
	Environmental Indemnity; Reservation of Rights Under the Federal Facilities Agreement
	 	 	12	 
	 
	 	 	 	 
	8.1. Definitions Related to Hazardous Materials
	 	 	12	 
	8.2. Release of Hazardous Materials
	 	 	12	 
	8.3. Indemnity
	 	 	12	 
	8.4. Landlord’s Right to Inspect
	 	 	13	 
	8.5. Reservation of Rights Under the Federal Facilities Agreement
	 	 	13	 
	8.6. Monitoring Wells and Access Thereto
	 	 	14	 
	8.7. Landlord to Exercise Its Rights under the Army Deed
	 	 	15	 
	8.8. Receipt of Documents
	 	 	15	 
	 
	 	 	 	 
	ARTICLE 9
	 	 	 	 
	Mortgages of Tenant’s Interest
	 	 	15	 
	 
	 	 	 	 
	9.1. Permitted Mortgages
	 	 	15	 
	9.2. Notice of Mortgage
	 	 	15	 
	9.3. Status Report
	 	 	16	 
	9.4. Protection of Leasehold Mortgagee
	 	 	16	 
	9.5. Lending Institutions
	 	 	18	 
	 
	 	 	 	 
	ARTICLE 10
	 	 	 	 
	Assignment and Subletting
	 	 	18	 
	 
	 	 	 	 
	10.1. Subletting
	 	 	18	 
	10.2. Assignment
	 	 	19	 
	10.3. Expenses of Landlord
	 	 	20	 
	 
	 	 	 	 
	ARTICLE 11
	 	 	 	 
	Casualty Damage
	 	 	20	 
	 
	 	 	 	 
	11.1. Restoration
	 	 	20	 
	11.2. Conditions of Work
	 	 	20	 
	 
	 	 	 	 
	ARTICLE 12
	 	 	 	 
	Eminent Domain and Public Dedication
	 	 	20	 
	 
	 	 	 	 
	12.1. Total, Partial Taking; Termination of Lease
	 	 	20	 
	12.2. Partial Taking — Lease Continues
	 	 	22	 
	12.3. Intentionally Deleted
	 	 	22	 
	12.4. Restoration of the Land
	 	 	22	 
	12.5. Intentionally Deleted
	 	 	22	 
	12.6. Intentionally Deleted
	 	 	22	 
	12.7. Abatement of Base Rent
	 	 	22	 
	12.8. Temporary Taking
	 	 	22	 
	12.9. Rights of Participation
	 	 	22	 
	12.10. Notice of Proceeding
	 	 	23	 
	 
	 	 	 	 
	ARTICLE 13
	 	 	 	 
	Intentionally Omitted
	 	 	23	 

 

 

	 	 	 	 	 
	ARTICLE 14
	 	 	 	 
	No Broker Representation
	 	 	23	 
	 
	 	 	 	 
	ARTICLE 15
	 	 	 	 
	Quiet Enjoyment
	 	 	23	 
	 
	 	 	 	 
	ARTICLE 16
	 	 	 	 
	End of Term
	 	 	23	 
	 
	 	 	 	 
	ARTICLE 17
	 	 	 	 
	Default
	 	 	 	 
	 
	 	 	 	 
	17.1. Events of Default
	 	 	24	 
	17.2. Indemnity and Hold Harmless Provision
	 	 	24	 
	17.3. Landlord’s Right to Repossess
	 	 	25	 
	 
	 	 	 	 
	ARTICLE 18
	 	 	 	 
	As Is Delivery Of The Land
	 	 	25	 
	 
	 	 	 	 
	ARTICLE 19
	 	 	 	 
	Design and Construction of Initial Improvements
	 	 	25	 
	 
	 	 	 	 
	19.1. Compliance with Permits, Etc.; Soil Management Plan;
Definition of “Initial Improvements”
	 	 	25	 
	19.2. Permits; Due Diligence
	 	 	26	 
	19.3. Contracts for Construction of Initial Improvements
	 	 	26	 
	19.4. General Provisions Governing Construction of Initial Improvements
	 	 	26	 
	19.5. Time for Commencement and Completion of Initial
Improvements; Conditions Precedent to Commencement of Construction
	 	 	27	 
	19.6. Force Majeure
	 	 	28	 
	19.7. Substantial Completion
	 	 	28	 
	19.8. Signage
	 	 	28	 
	 
	 	 	 	 
	ARTICLE 20
	 	 	 	 
	Alterations and Optional Improvements; No Landlord Obligations to Make Initial Improvements or
Optional Improvements
	 	 	28	 
	 
	 	 	 	 
	20.1. Conditions for Making Tenant Alterations and Optional Improvements
	 	 	28	 
	 
	 	 	 	 
	ARTICLE 21
	 	 	 	 
	Ownership of Improvements
	 	 	29	 
	 
	 	 	 	 
	ARTICLE 22
	 	 	 	 
	Miscellaneous Provisions
	 	 	29	 
	 
	 	 	 	 
	22.1. Nondiscrimination
	 	 	29	 
	22.2. Intentionally Deleted
	 	 	30	 
	22.3. The Landlord’s Liability; The Tenant’s Liability
	 	 	30	 
	22.4. Status Report
	 	 	30	 

 

 

	 	 	 	 	 
	22.5. Provisions Binding
	 	 	30	 
	22.6. Invalidity of Particular Provisions
	 	 	31	 
	22.7. Filing of a Memorandum of Lease
	 	 	31	 
	22.8. Waiver
	 	 	31	 
	22.9. Landlord’s Right of Self-Help
	 	 	31	 
	22.10. Interest
	 	 	32	 
	22.11. Amendments
	 	 	32	 
	22.12. Governing Law
	 	 	32	 
	22.13. Notices
	 	 	32	 
	22.14. Intentionally Deleted
	 	 	33	 
	22.15. Force Majeure
	 	 	33	 
	22.16. Survival of Certain Provisions
	 	 	33	 
	22.17. “Legal Costs” Defined
	 	 	33	 
	 
	 	 	 	 
	ARTICLE 23
	 	 	 	 
	Tenant’s Option to Purchase
	 	 	33	 
	 
	 	 	 	 
	23.1. Grant of Option; Option Period
	 	 	33	 
	23.2. Purchase Notice and Deposit
	 	 	34	 
	23.3. Purchase Price
	 	 	34	 
	23.4. Negative Covenant in Deed to the Land
	 	 	34	 

 

 

GLOSSARY OF DEFINED TERMS

	 	 	 
	EXHIBIT A

	 	Legal Description of the Land
	 
	 	 
	EXHIBIT B

	 	Evergreen Solar Unified Permit
	 
	 	 
	EXHIBIT C

	 	Utility Sales Agreement
	 
	 	 
	EXHIBIT D

	 	Sketch Plan Showing Monitoring Wells on the Land
	 
	 	 
	EXHIBIT E

	 	Project Grant Agreement
	 
	 	 
	EXHIBIT F

	 	Memorandum of Lease
	 
	 	 
	EXHIBIT G

	 	Form of Purchase and Sale Agreement
	 
	 	 
	SCHEDULE 1.1

	 	Permitted Encumbrances
	 
	 	 
	SCHEDULE 9.4(d)

	 	Determination of Fair Market Rent
	 
	 	 
	SCHEDULE 23

	 	Determination of Fair Market Value

 

 

SUMMARY OF LEASE

	 	 	 
	LANDLORD:

	 	Massachusetts Development Finance Agency
	 
	 	 
	TENANT:

	 	Evergreen Solar, Inc., a Delaware corporation
	 
	 	 
	LAND:

	 	The land known as Lot 2, Barnum Road, Town of Harvard,
Worcester County, Massachusetts, containing
approximately 23.11 acres of land, as more particularly
described in Exhibit A to this Lease
	 
	 	 
	IMPROVEMENTS:

	 	All buildings, structures and other improvements now or
hereafter existing on the Land.
	 
	 	 
	PREMISES

	 	The Land, together with the Improvements located
thereon.
	 
	 	 
	COMMENCEMENT DATE:

	 	As provided in Section 1.3 hereof
	 
	 	 
	TERM:

	 	Commencing on the Commencement Date and expiring at
midnight on the day immediately prior to the thirtieth
(30th) anniversary date of the Commencement
Date (the “Term”)
	 
	 	 
	PERMITTED USES:

	 	Uses of the Land permitted in accordance with the
provisions of Article 2 hereof
	 
	 	 
	RENT:

	 	Base Rent and Additional Rent as provided in Article 3
hereof

 

 

GROUND LEASE

          THIS GROUND LEASE (this “Lease”), is made as of this 20th day of November, 2007 by and
between MASSACHUSETTS DEVELOPMENT FINANCE AGENCY, a Massachusetts body politic and corporate
established under Chapter 23G of the Massachusetts General Laws, successor-in-interest to the
Government Land Bank under Chapter 289 of the Acts of 1998, having an address at 160 Federal
Street, Boston, Massachusetts 02110 (the “Landlord”) and EVERGREEN SOLAR, INC., a Delaware
corporation, having its principal office at 138 Bartlett Street, Marlborough, MA 01752 (the
“Tenant”).

RECITALS:

          WHEREAS, the Landlord is the owner of the Land (as hereinafter defined) and desires to lease
the Land to the Tenant and Tenant desires to lease the Land from Landlord, all on the terms and
conditions set forth herein; and

          WHEREAS, the Tenant’s intended use of the Land is for the construction and operation of a
facility for the design, manufacture and assembly of products for renewable energy technologies and
all related functions including research and development, warehousing and administration as well as
associated parking, driveways, storage areas, loading bays and site utilities (the
“Project”).

AGREEMENTS:

          NOW, THEREFORE, the Landlord and the Tenant hereby agree as follows:

RULES OF CONSTRUCTION; DEFINITIONS:

          This Lease supersedes all other agreements concerning the Land, whether oral or in writing,
between the Tenant and the Landlord.

          All exhibits and schedules to this Lease are incorporated herein. The use of the singular of
terms which are defined herein (in the plural or the singular) shall mean and refer to any one of
them, or a particular one of them, as the context permits or requires; the use of the plural of
terms which are defined herein (in the singular or the plural) shall mean and refer to all or any
combination of them, as the context permits or requires; and pronouns used herein shall be deemed
to include the singular and the plural and all genders.

          Use of the connective “or” is not intended to be exclusive unless used with the word “either”;
the term “may not” is intended to be prohibitive and not permissive; use of “includes” and
“including” is intended to be interpreted as expansive and amplifying and not as limiting in any
way.

          Terms defined elsewhere in this Lease shall have the respective meanings ascribed to them
where so defined. A Glossary of Defined Terms may be found directly after the signature page of
this Lease.

TERMS OF THIS LEASE:

ARTICLE 1

Land and Term

          1.1. The Land. The Landlord, for and in consideration of the rent, terms, covenants
and conditions herein reserved and contained on the part of Tenant to be paid, kept and
performed, hereby leases to the Tenant, and the Tenant hereby leases from Landlord, upon and
subject to the terms, covenants and conditions herein set forth, the parcel of land known as Lot
2, Barnum Road (“Lot 2”) h

 

 

located in the Town of Harvard, Worcester County, Massachusetts, Lot 2 containing
approximately 23.11 acres of land, located in the Rail, Industrial and Trade-Related Zoning
District at the Devens Regional Enterprise Zone and more particularly described in Exhibit A
attached hereto, and all easements, privileges, hereditaments and appurtenances in, on, under or
affecting Lot 2 (but excluding any public streets, ways and alleys abutting or adjoining Lot 2,
which public streets, ways or alleys, the Parties agree, may be used by the Tenant in common with
others entitled thereto, for all uses and purposes for which public streets, ways and alleys may
be used in the Devens Regional Enterprise Zone) (the “Appurtenant Easements”), and any
strips, gores, trees, shrubs and plants thereon (all of the foregoing, together with Lot 2, are
hereinafter collectively referred to as the “Land”), and together with, except as
otherwise herein provided, all buildings, structures and other improvements now or hereafter
constructed thereon in compliance with this Lease (the “Improvements”; the Land and the
Improvements are hereinafter collectively referred to as the “Premises”), free of all
tenants occupying the Land pursuant to rights granted by the Landlord, subject, however, to the
following: (a) any facts that an accurate survey or personal inspection of the Land would show;
(b) easements, covenants and restrictions of record as of the date hereof, to the extent that the
same are in force or effect; including without limitation those listed on Schedule 1.1
Permitted Encumbrances attached hereto; (c) easement rights reserved hereby in favor of
Landlord (the “Reserved Easements”) if needed for purposes of installing, maintaining,
replacing or upgrading underground utilities and reconnecting driveways in connection therewith
by the Landlord, which Reserved Easements shall be located only within twenty-five feet of the
perimeter lot line of Lot 2 and shall not materially adversely affect Tenant’s use of the
Premises for the Permitted Uses (as defined in Section 2.1 hereof); (d) present and future Laws
(as defined in Article 2), of all boards, bureaus, commissions and bodies of any municipal,
county, state, federal or other governmental body now or hereafter having or acquiring
jurisdiction over the Land and/or the use or improvement thereof, including the Devens Enterprise
Commission (the “DEC”) (each a “Governmental Authority”); (e) violations of Laws,
whether or not recorded or noted, of a Governmental Authority, against or affecting the Land as
the same may exist on the Commencement Date (as defined below); (f) all taxes, duties,
assessments, special assessments, water charges and sewer rents and any other impositions by a
Governmental Authority, fixed or not fixed, accrued from and after the Commencement Date; and (g)
the condition and state of repair of the Land as the same may be on the Commencement Date.

          1.2. Condition of the Land. Tenant acknowledges that it has leased the Land and has
agreed to construct the Initial Improvements (hereafter defined in Article 19) after having had a
full and complete opportunity to conduct an examination of the Land, including, without
limitation, subsurface conditions, the presence of any hazardous waste or materials located on
the Land, the legal title to the Land and Laws affecting the same, as the Tenant deems necessary
and/or desirable, and accepts the same in the same condition in which they or any part thereof
now are, and assumes all risks in connection therewith, without any representation or warranty,
express or implied, in fact or by law, on the part of Landlord, and without recourse to Landlord,
Tenant hereby waiving any and all claims, now existing or hereafter arising, relating to the
condition (known or unknown) of the Land, including without limitation those matters set forth on
Schedule 1.2 hereof.

          Notwithstanding the foregoing provisions, the Landlord and Tenant acknowledge that the Tenant
shall have a right to terminate this Lease (“Tenant’s Termination Option”) at any time
within six (6) months of the date hereof in the event that the Tenant determines that there are any
Hazardous Materials located on the Land which prohibit or substantially interfere with the Tenant’s
ability to construct the Initial Improvements (as defined in Article 20 hereof) and use the same
for the Permitted Uses. In such event, the Tenant shall promptly notify the Landlord of the nature
of the materials found and provide the

2

 

Landlord with copies of all reports related thereto received by Tenant. In no event shall the
Landlord have any obligation under this Lease to remedy any such matter. In addition, in such
event, the surrender of the Land by the Tenant shall be subject to the provisions of Article 16
hereof.

          1.3. Initial Term. TO HAVE AND TO HOLD the Land for an initial term (the
“Initial Term”) commencing on November 20, 2007 (the “Commencement Date”); and
expiring at midnight on the day immediately prior to the thirtieth (30th) anniversary
date of the Commencement Date (the “Expiration Date”), unless this Lease shall sooner
terminate as hereinafter provided. The Initial Term, as the same may be extended pursuant to
Section 1.5 hereof, is called the “Term”.

          1.4. Delivery and Acceptance of Possession. The Landlord will deliver possession of
the Land to the Tenant on the Commencement Date; the Tenant shall accept, subject to the terms
hereof, possession of the Land on the Commencement Date.

          1.5. Extension of the Initial Term. Subject to the terms and provisions hereof and
provided that there is no Event of Default existing at the time of the exercise of the applicable
option term extension, the Tenant may extend the Initial Term of this Lease for two (2)
additional terms of ten (10) years each (the “First Option Term” and the “Second
Option Term”; the exercise of the Second Option Term being subject to the timely exercise of
the First Option Term). The Tenant shall exercise such option by giving written notice to the
Landlord on or before twelve (12) months prior to the expiration of the Initial Term for the
exercise of the First Option Term and on or before twelve (12) months prior to the expiration of
the First Option Term for the exercise of the Second Option Term, of its intent to exercise its
option to extend this Lease for the applicable Option Term. The timely giving of such written
notice by Tenant shall automatically extend the Term of this Lease for the respective Option Term
at the end of the Initial Term or the First Option Term, as the case may be.

          1.6. The Project/The Land. The term “Project” shall include the Land upon
construction of the Project upon the Land.

ARTICLE 2

Permitted Uses; Compliance with Laws

          2.1. Permitted Uses; Continuous Operation upon Completion of Initial Improvements.
The Land shall be used and occupied only for the construction and operation of a facility for the
design, manufacture and assembly of products for renewable energy technologies and all related
functions including research and development, warehousing and administration as well as
associated parking, driveways, storage areas, loading bays and site utilities (the “Permitted
Uses”) and for no other uses, subject to and in compliance with the Evergreen Solar Unified
Permit dated August 14, 2007 as amended, and attached hereto as Exhibit B (the “Unified
Permit”). The Tenant acknowledges that the Landlord has entered into this Lease in reliance
upon the Tenant’s covenant to use the Land for the Permitted Uses, and therefore expressly agrees
that use of the Land, other than for Permitted Uses, without the express written consent of the
Landlord, which may be withheld in the Landlord’s sole discretion, shall be a default hereunder
with respect to which the Landlord, in addition to all of the rights available at law, shall have
all rights available in equity, including the right to enforce this obligation by injunctive
relief and specific performance.

          2.2. Compliance with Laws.

3

 

          (a) The Tenant shall, at all times during the Term, at the Tenant’s own cost and expense,
perform and comply with, and shall cause all subtenants, licensees and operators to promptly comply
with, all laws, rules, orders, ordinances, regulations, and requirements now or hereafter enacted
or promulgated, of every Governmental Authority, including without limitation the Landlord acting
in its capacity as a Governmental Authority, and of any agency thereof, relating to the Land and
the Project, or the facilities or equipment therein, or the streets, sidewalks, curbs, and gutters
on the Land and forming a part of the Land, or the appurtenances to the Land, or the franchises and
privileges connected therewith, or any condition or use of the Land, including land-use,
environmental and operational laws, rules, orders, ordinances, regulations and requirements
(collectively, the “Laws”) whether or not such Laws so involved shall necessitate
structural changes, improvements, interference with use and enjoyment of the Land or the Project,
replacements, or repairs, extraordinary as well as ordinary, and the Tenant shall so perform and
comply, whether or not such Laws shall now exist or shall hereafter be enacted or promulgated, and
whether or not such Laws can be said to be within the present contemplation of the parties hereto.
In addition, if prior to commencement of the Term, the Tenant or its agents or contractors goes
onto the Land to perform any acts, such acts shall be performed in compliance with Laws and
otherwise in compliance with the terms of the Non Exclusive License/Access Agreement to Enter onto
Land for Limited Site Assessment and Pre-Development Activity Purposes dated as of June 15, 2007,
as amended by First Amendment to License/Access Agreement dated as of July 10, 2007, Second
Amendment to License/Access Agreement dated as of August 3, 2007, Third Amendment to License/Access
Agreement dated as of August 16, 2007, Fourth Amendment to License/Access Agreement dated as of
September 14, 2007, Fifth Amendment to License/Access Agreement dated as of September 28, 2007,
Sixth Amendment to License/Access Agreement dated as of October 10, 2007, Seventh Amendment to
License/Access Agreement dated as of October 17, 2007, Eighth Amendment to License/Access Agreement
dated as of October 24, 2007, Ninth Amendment to License/Access Agreement dated as of October 31,
2007, Tenth Amendment to License/Access Agreement dated as of November 7, 2007, Eleventh Amendment
to License/Access Agreement dated as of November 9, 2007 and Twelfth Amendment to License/Access
Agreement dated as of November 14, 2007, as the same may be further amended, which Right of Entry
Agreement shall terminate upon the Commencement Date of this Lease. Except as otherwise provided
in Section 2.2(b) below, no provision of this Lease shall be construed so as to permit the Tenant
to postpone compliance with such Laws if any Governmental Authority shall threaten to carry out any
work to comply with the same or to foreclose or sell any lien affecting all or any part of the
Land. Tenant shall, in the event of any violation or any attempted violation of this Section by
any subtenant, licensee or operator, take steps, immediately upon knowledge of such violation, as
Tenant determines to be reasonably necessary to remedy or prevent the same as the case may be.

          (b) The Tenant shall have the right, provided it does so with due diligence and dispatch, to
contest by appropriate legal proceedings, without cost or expense to the Landlord, the validity of
any Laws of the nature hereinabove referred to in this Section 2.2. The Tenant may postpone
compliance with such Laws until the final determination of such proceedings but only so long as
such postponement of compliance will not subject the Landlord to any criminal prosecution or civil
action or liability, or any costs or other liability or loss of any kind against the Landlord or
the interest of the Landlord in the Land or the Improvements thereon which may arise by reason of
postponement or failure of compliance with such Laws and only so long as such postponement of
compliance will not have an adverse effect on the public health or safety as reasonably determined
by the Landlord, and the Tenant shall indemnify and hold the Landlord harmless from all costs,
claims, losses and liabilities in any way relating to the same, including “Legal Costs” as
hereinafter defined in Section 22.17.

4

 

          (c) Tenant shall be responsible for securing all permits or licenses necessary for the
construction and operation of the Initial Improvements as soon as such applications can
appropriately be made if same cannot be secured prior to the commencement of construction of the
Initial Improvements, and agrees to diligently and in good faith pursue such applications and to
coordinate with Landlord in such pursuit. The cost of obtaining any such licenses and permits
shall be borne solely by the Tenant.

          (d) Upon Substantial Completion of the Initial Improvements, the Tenant shall Use and Occupy
(as hereinafter defined) the Project consistent with the normal hours of operation for the
Permitted Uses, subject to the cessation of such uses as shall be reasonably required for (i)
maintenance and repair or alterations to the Project and/or the Land; (ii) as shall be reasonably
required in connection with restoration resulting from any Casualty or Taking of the Land or the
Project; or (iii) a cessation of the Permitted Uses for more than a three (3) month consecutive
period which conduct of the Permitted Uses is not restored within three (3) months of notice from
the Landlord. “Use and Occupy” shall mean the conduct of the Tenant’s business for the Permitted
Uses consistent with the days and hours of operation of similar businesses.

          (e) Tenant shall not, directly or indirectly, create or permit to be created or to remain, and
shall discharge, any mechanic’s or other lien placed on the estate of Landlord in the ordinary
course of business or with respect to any work performed by or on behalf of Tenant on or about the
Land. Tenant shall pay promptly all persons furnishing labor or materials with respect to any work
performed by Tenant. Notwithstanding the foregoing, Tenant shall have the right to contest by
appropriate legal proceedings diligently conducted in good faith, in the name of Tenant, or
Landlord, or both without cost, expense, liability or damage to Landlord, the validity or
application of any lien. Tenant and any Subtenants shall procure unconditional waivers and
releases of lien claims (and/or notices of completion) in form reasonably acceptable to Landlord
from all persons furnishing labor or materials with respect to any work performed on behalf of
Tenant on the Land, at the time each progress payment and/or final payment is made. In the event
any mechanic’s or other lien shall at any time be filed against the Land by reason of work, labor,
services or materials performed or furnished, or alleged to be performed or furnished, to Tenant or
to any one holding the Land through or under the Tenant, Tenant shall, within thirty (30) days of
notice of its recordation, cause the same to be discharged of record or bonded to the satisfaction
of Landlord. If Tenant fails to cause such lien forthwith to be so discharged or bonded after
being notified of the filing thereof, then, in addition to any other right or remedy of Landlord,
Landlord may discharge the same by paying the amount claimed to be due or may cause the same to be
bonded, and the amount so paid by Landlord, including reasonable attorney’s fees incurred by
Landlord in either defending against such lien or procuring the discharge or bonding of such lien,
together with interest thereon at the annual rate provided in Section 22.10 hereof, shall
constitute Additional Rent and shall be payable by Tenant to Landlord on demand.

ARTICLE 3

Base Rent and Additional Rent

          3.1. Base Rent. The Tenant shall pay to the Landlord, in accordance with the terms
of this Lease, base rent (“Base Rent”) in the amount of One Dollar ($1.00) per annum for
the period commencing on the Base Rent Commencement Date (defined to mean the date on which the
Tenant commences occupancy of the Land for the conduct of its business following completion of
the Initial Improvements) and continuing throughout the Term.

5

 

          3.2. Payment of Base Rent. Commencing on the Commencement Date and continuing for
the remainder of the Term, Tenant shall pay the Base Rent to Landlord in advance in one annual
installment on or before the Commencement Date and each successive anniversary of the
Commencement Date, respectively.

          3.3. Method of Payment. All payments of Base Rent, Additional Rent (as hereinafter
defined) (Base Rent and Additional Rent are together referred to herein as “Rent”) and
other sums due Landlord shall be paid in current U.S. exchange by check drawn on a Boston
Clearinghouse Bank without intervening endorsement at the Landlord’s address set forth at the
beginning of this Lease or such other place as Landlord may from time to time direct by written
notice (or if requested by Landlord, following reasonable advance notice accompanied by
appropriate instructions, by electronic fund transfer) without notice, demand, set-off,
counterclaim or other deduction. Rent not paid within five (5) days of when due shall bear
interest at an annual rate as provided in Section 22.10 hereof. Tenant shall make ratable
payments of Rent for any period of less than a month, as and when Rent is adjusted hereunder.
Each payment of Additional Rent shall be paid by the Tenant directly to the party entitled to
such payment.

          For purposes of this Lease, all monetary amounts to be paid by Tenant pursuant to the terms of
this Lease, and whether characterized as Base Rent or Additional Rent, shall be deemed to
constitute Rent hereunder, it being the intention of the parties hereto that Landlord shall have
the right to exercise all rights and remedies for the non-payment of Additional Rent when due that
Landlord has hereunder for the non-payment of Base Rent.

          Without limiting the foregoing, except as and to the extent expressly otherwise provided in
this Lease, Tenant’s obligation so to pay Rent shall not be discharged or otherwise affected by any
applicable Law now or hereafter applicable to the Land, or any other restriction on or interference
with the Permitted Uses, or any damage or destruction of the Land or any Improvements thereon, or
any Taking, or any other interruption or occurrence whatsoever.

          3.4. Base Rent Net to Landlord. Base Rent shall be absolutely net to the Landlord
so that this Lease shall yield to the Landlord the full amount of Base Rent without deduction and
free of any charges, assessments, Impositions (as hereinafter defined in Article 4) or deductions
of any kind charged, assessed, or imposed on or against the Land or its use, and without
abatement, deduction or set-off by the Tenant, and the Landlord shall not be expected or required
to pay any such charge, assessment or Imposition, or be under any obligation or liability
hereunder except as herein expressly set forth, and all costs, expenses and obligations of any
kind relating to the maintenance and operation of the Land, including all alterations, repairs,
reconstruction and replacements as provided in this Lease, that may arise or become due during
the Term hereof shall be paid by the Tenant, and the Landlord shall be indemnified and saved
harmless by the Tenant from and against such costs, expenses and obligations.

          3.5. Additional Rent. From and after the Commencement Date, the Tenant shall also
pay without abatement, deduction or set-off as additional rent (“Additional Rent”), all
sums, Impositions (as defined in subsection 4.1), costs, expenses and other payments which the
Tenant in any of the provisions of this Lease assumes or agrees to pay and in the event of any
non-payment of Additional Rent, the Landlord shall have (in addition to all other rights and
remedies) all the rights and remedies provided for herein or by law or in equity. Additional
Rent for any partial month at the beginning or

6

 

end of the Term shall be prorated and Tenant shall only be liable for the portion of such
Additional Rent attributable to the Term hereunder.

          3.6. No Release of Obligations. (a) No happening, event, occurrence or situation
during the Term hereof, whether foreseen or unforeseen, and however extraordinary (including
without limitation, the Tenant’s failure, refusal or inability for any reason to construct the
Initial Improvements) shall permit the Tenant to quit or surrender the Land or this Lease or
shall relieve the Tenant from its liability to pay the Base Rent and Additional Rent and other
charges due under this Lease, or shall entitle the Tenant to any abatement or refund of any Base
Rent, or shall relieve the Tenant from any of its other obligations under this Lease, and (b) the
Tenant waives any rights now or hereafter conferred upon, to the extent permitted by law, to quit
or surrender the Land leased hereunder, or any part thereof, or to any abatement, set-off,
reduction or suspension of Base Rent or Additional Rent on account of any such act, happening,
occurrence or situation, except as otherwise provided herein.

ARTICLE 4

Real Estate Taxes

          4.1. Impositions. Tenant covenants to pay throughout the Term, directly to the
appropriate Governmental Authority or to the appropriate party, before any fine, penalty,
interest or cost may be added thereto for the nonpayment thereof, any and all taxes and amounts
payable under a certain Tax Increment Financing Agreement by and between the Landlord and the
Tenant dated November 20, 2007 (the “TIF Agreement”), and payments in lieu of taxes
required to be paid under any agreement with the Landlord, assessments (including, but not
limited to, all assessments for public improvements or benefits, payable during the term of this
Lease), water, sewer and other rents, rates and charges, charges for public utilities, excises,
levies, licenses and permit and inspection fees and other charges (imposed by a Governmental
Authority or otherwise), general and special, ordinary and extraordinary, foreseen and
unforeseen, of any kind and nature whatsoever, which at any time during the Term are assessed,
levied, confirmed, imposed upon, or grow or become due or payable out of or in respect of, or
become a lien on (a) the Land, or (b) any payments reserved or payable hereunder or any other
sums payable by the Tenant hereunder, or (c) this Lease or the leasehold estate hereby created,
or which arise in respect of the operation, possession, occupancy or use of the Land (all of
which taxes, payments in lieu of taxes, assessments, charges, interest, penalties or like charges
are sometimes hereinafter referred to collectively as “Impositions” and individually as
an “Imposition”); provided, however, that:

          (i) If, by law, any Imposition is or may be payable, at the option of the taxpayer, in
installments, the Tenant may pay such Imposition in installments (with any accrued interest
due and payable on the unpaid balance of the Imposition) and shall pay each such installment
as the same respectively becomes due and before any fine, penalty, further interest or cost
may be added thereto.

          (ii) Impositions, whether or not a lien upon the Land, shall be apportioned between the
Landlord and the Tenant at the beginning and at the end of the Term, and the Tenant shall
pay only such Impositions which are assessed against the Land with respect to any tax year
which falls within the Term. The Tenant hereby waives any claim that it is or may become
exempt from obligations relating to Impositions based upon the Landlord’s status as a
Governmental Authority.

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          4.2. Impositions Assessed Against the Landlord. Nothing herein contained shall
require the Tenant to pay income taxes assessed against the Landlord, or any capital levy,
corporation franchise, excess profits, estate, succession, inheritance or transfer taxes of the
Landlord, unless such taxes are imposed or levied upon or assessed as a total or partial
substitute for, or in lieu of, any other Imposition required to be paid by the Tenant pursuant to
this Article 4, in which event, the same shall be deemed Impositions and shall be paid by the
Tenant; provided, however, that if at any time during the Term, the method of taxation shall be
such that there shall be levied, assessed or imposed on the Landlord a capital levy, gross
receipts or other tax on the Rent received hereunder and/or a franchise tax or an assessment,
levy or charge measured by or based, in whole or in part, upon such Rent, upon the Land or the
Project (including but not limited to the acquisition, leasing, use or value thereof), and/or
measured in whole or in part by the Landlord’s income from, or use of, the Land, then all such
taxes, assessments, levies and charges, or the part thereof so measured or based, shall be deemed
to be included within the term “Impositions” for the purposes hereof and the Tenant shall pay and
discharge the same as herein provided in respect of the payment of Impositions.

          4.3. Tenant’s Failure to Promptly Pay Impositions. The Tenant shall pay all
Impositions before any fine, penalty, interest or cost may be added thereto for the nonpayment
thereof, and, with respect to real estate taxes only, shall furnish to the Landlord, within
thirty (30) days of a written request by the Landlord, with receipts or other satisfactory proof
evidencing payment of such real estate taxes.

          4.4. Validity of Impositions. The Tenant shall have the right to contest the amount
or validity, in whole or in part, of any Imposition by appropriate proceedings diligently
conducted in good faith, but only after payment of such Imposition, unless such payment would
operate as a bar to such contest or interfere materially with the prosecution thereof, in which
event, notwithstanding the provisions hereof, the Tenant may postpone or defer payment of such
Imposition if, but only if (i) neither the Land or Project nor any part thereof would by reason
of such postponement or deferment be in danger of being forfeited or lost, and (ii) the Tenant
shall have provided the Landlord with evidence that the amount so contested and unpaid, together
with all interest and penalties in connection therewith and all charges that may or might be
assessed against or become a charge on the Land or the Project or any part thereof, in such
proceedings has been set aside in a separate bank account and earmarked for such purposes upon
such arrangements as are reasonably satisfactory to the Landlord. The Tenant will save the
Landlord harmless from any and all losses, liabilities, claims, judgments, decrees and costs,
including Legal Costs, in connection with any such contest and will, promptly after the final
settlement, compromise or determination of such contest, fully apply and discharge the amounts
which shall be levied, assessed, be payable thereon or in connection therewith, together with all
penalties, fines, interest, costs and expenses thereof or in connection therewith.

ARTICLE 5

Insurance

          5.1. Liability, Hazard and Other Insurance.

          (a) The Tenant will, at all times during the Term, maintain, or cause to be maintained,
insurance on the Premises of the following character:

          (i) Insurance against loss or damage by fire, vandalism and malicious mischief,
extended coverage perils and all physical loss perils commonly known as “All Risk”
(including

8

 

earthquake coverages if the same is available at commercially reasonable rates), as
shall from time to time be customary for similarly situated premises in The Commonwealth of
Massachusetts, with a replacement cost coverage endorsement, an agreed amount endorsement
waiving all co-insurance provisions of the policy or policies in question, and in an amount
not less than one hundred percent of the replacement value of the Improvements (excluding
foundation(s)), without any deduction being made for depreciation and with a deductible not
to exceed $50,000. Such replacement value shall be determined by the company issuing the
insurance policy at the time the policy is initially obtained and shall be evidenced by an
agreed amount endorsement.

          (ii) Commercial general liability insurance on an occurrence basis insuring the Tenant
against claims for bodily injury, death, or property damage occurring on, in, or about the
Land, or in connection with the Tenant’s use and occupancy of the Land and the Improvements,
such insurance to be in standard form and with such coverages and in such amounts as the
Landlord shall reasonably request pursuant to Section 5.1(a) (vii) (but in any event
initially with a general aggregate limit of not less than $5,000,000, a products — completed
operations aggregate limit of not less than $5,000,000, a personal and advertising injury
limit of not less than $1,000,000, and a per occurrence limit of not less than $5,000,000
for bodily injury, property damage and medical payments, which may be based upon a
combination of primary coverage of not less than $1,000,000 plus umbrella coverage, which
policy shall include operations and contractual liability coverage which insures performance
by the Tenant of the indemnity provisions set forth in Section 5.2 of this Lease. The
Landlord shall be named as an additional insured under this policy.

          (iii) Adequate boiler and pressure vessel insurance on all equipment, parts thereof,
and appurtenances attached or connected to the Land, which by reason of their use or
existence are capable of bursting, erupting, collapsing, or exploding, in such limits as may
be reasonably acceptable to the Landlord.

          (iv) During the course of any construction, repair, restoration or replacement of the
Improvements, builder’s risk insurance (or such reasonably comparable insurance) on an
all-risk basis (including collapse) in an amount equal to 100% of the projected completed
value of the Initial Improvements with “increased cost of construction” endorsement and
shall insure against the perils of fire and extended coverage and physical loss or damage,
including without duplication, coverages with respect to casualties arising due to
subsurface work, shoring, blasting, pile driving, caisson work and the like, loss or damage
to the equipment, supplies and materials furnished and stored, and owned and non-owned
vehicle liability insurance with respect to all vehicles and registered mobile equipment and
with respect to any unlicensed mobile equipment, written on a completed value, non-reporting
form.

          (v) Broad form flood insurance if any portion of the Improvements is currently or at
any time in the future located in an area identified by the Secretary of Housing and Urban
Development, or any successor agency, as an area having special flood, mudslide or
flood-related erosion hazards and in which flood insurance has been made available under the
National Flood Insurance Act of 1968 or the Flood Disaster Protection Act of 1973, as
amended from time to time, provided that if broad form flood coverage is not available, such
insurance shall be for the lesser of the replacement value of the Improvements or the
maximum amount available under the National Flood Insurance Program.

9

 

          (vi) If required by Laws, worker’s compensation insurance for all persons engaged by
the Tenant or any contractor or subcontractor to conduct any activities at the Land, subject
to the statutory limits in the Commonwealth of Massachusetts, and employers liability
insurance with a limit of at least $1,000,000 per accident and per disease per employee, and
$1,000,000 per disease policy limit.

          (vii) Such other insurance reasonably required by the Landlord and customarily carried
by tenants of similar property in similar businesses, or increased amounts of the insurance
referred to in (i) — (vi) above (based on changed circumstances, including the declining
value of the dollar), that the Landlord may reasonably request, but not to exceed the level
of coverage for such insurance commonly carried by comparable business similarly situated,
as reasonably determined by the Landlord.

          (b) Such insurance shall be written by companies of recognized financial standing which are
rated “A” or “A-” by a national rating agency and are legally qualified to issue such insurance in
The Commonwealth of Massachusetts, and such insurance shall name the Tenant as the insured party
thereunder. Such insurance may be obtained by the Tenant by endorsement on its blanket insurance
policies, provided that (i) such blanket policies satisfy the requirements specified herein, and
(ii) the Landlord shall be furnished with the certificate of the insurer to the effect that (a) the
amount of insurance allocable exclusively to the Premises is not less than the amount required by
this Article and (b) the protection afforded the Premises is not less than the protection that
would have been afforded under a separate policy or policies relating only to the Premises. All
insurance policies to be maintained hereunder shall require thirty (30) days advance written notice
to the Landlord prior to cancellation, material modification or expiration of such policies.

          (c) The Tenant has, as of the Commencement Date, delivered to the Landlord certificates of
insurance satisfactory to the Landlord evidencing all the insurance which is then required to be
maintained by the Tenant hereunder, and the Tenant shall deliver to the Landlord no later than
sixty (60) days after the Commencement Date the original or duplicate policies satisfactory to the
Landlord evidencing all the insurance which is then required to be maintained by the Tenant
hereunder; in addition, the Tenant shall, within thirty (30) days prior to the date of expiration
of any such insurance, deliver either original or duplicate policies or certificates of insurance
(followed within sixty (60) days thereafter by delivery of the extension of the policies)
evidencing the renewal of such insurance. Should the Tenant fail to effect, maintain, or renew any
insurance provided for herein, or to pay the premium therefor, or to deliver to the Landlord any of
such policies or certificates when required hereunder, the Landlord, at its option, but without
obligation so to do, may procure such insurance, and any sums expended by it to procure such
insurance shall be Additional Rent hereunder and shall be repaid by the Tenant within thirty (30)
days following the date on which demand therefor shall be made by the Landlord. The Tenant’s
insurance policy(ies) shall contain a provision that such policy(ies) shall not be canceled,
modified or reduced in scope, and shall not expire, without thirty (30) days prior written notice
to the Landlord.

          5.2. Indemnity. To the extent such provision is enforceable at law and except to
the extent arising as a result of the negligence or willful misconduct of Landlord, the Tenant
will indemnify and hold harmless the Landlord (including for purposes of this Section 5.2, the
Landlord’s officials, employees, agents, contractors and representatives) from and against any
and all liability, loss, damages, expenses (including Legal Costs), costs of action, suits,
interest, fines, penalties, claims, and judgments arising from injury, or claim of injury, during
the Term of this Lease to person or property of any and every nature, and from any matter or
thing, arising from any act or failure to act by the

10

 

Tenant with respect to the Land or the Improvements to be constructed thereon (including the
facilities and equipment thereon), the occupation, possession, use, management, improvement,
construction, alteration, repair, maintenance, control or leasing of the Land or the Improvements
to be constructed thereon (including the streets, sidewalks, steam tunnels, curbs, and gutters
forming a part of the Premises, the appurtenances to the Premises, or the franchises and
privileges connected therewith, or arising out of the Tenant’s failure to perform, fully and
promptly, or the Tenant’s postponement of compliance with, each and every term, covenant,
condition, or agreement herein provided to be performed by the Tenant. The Tenant shall pay the
Legal Costs of the Landlord incurred in connection with any and all suits that may be brought and
claims which may be made, against the Landlord, or in which the Landlord may be impleaded with
others, whether the Landlord shall be liable or not, upon any such above-mentioned liability,
loss, damages, expenses, costs of action, suits, interest, fines, penalties, claims, and
judgments, and the Tenant, at the Tenant’s own cost and expense, shall satisfy, pay, and
discharge any and all judgments, and pay any settlements approved by the Tenant, that may be
recovered against the Landlord in any such action or actions in which the Landlord may be a party
defendant, or that may be filed against the Land, or any interest therein, and in the event of
the failure of the Tenant to pay the sum or sums for which the Tenant shall become liable as
aforesaid, then the Landlord may pay such sum or sums, with all interest and charges which may
have accrued thereon, and the amount so paid by the Landlord, together with any Legal Costs,
shall be Additional Rent payable by the Tenant to the Landlord within thirty (30) days following
the date on which demand therefor shall be made by the Landlord. The indemnification provisions
set forth in this Section 5.2 shall survive the expiration or earlier termination of this Lease.

          5.3. Waiver of Subrogation. Each insurance policy obtained by the Tenant in
connection with this Lease shall include a waiver by the insurer of all rights of subrogation
against the Landlord.

          5.4. Landlord’s Insurance. The Tenant acknowledges that the Landlord is not
required to procure or maintain insurance of any kind on or with respect to the Land or the
Improvements under this Lease.

ARTICLE 6

Utilities and Services

          The Tenant shall provide and pay for, as Additional Rent, directly to the utility provider,
all charges by any public authority or public utility for all of Tenant’s requirements for
utilities and services, including, but not limited to, gas, steam, heat, water, sewer, electricity,
telephone or other telecommunication service and the like at the Land, and service inspections made
therefor. The Landlord shall have no obligation to provide the Land with or arrange for the
availability of any utilities or services and makes no representations or warranties relating
thereto or to the condition of the Land in any respect.

          Simultaneously with the execution of this Lease, the Tenant shall, as a condition of the
effectiveness of this Lease, enter into a Utility Sales Agreement in the form of Exhibit C hereto.

ARTICLE 7

Repairs and Maintenance

          The Tenant agrees to be solely responsible, at its sole cost and expense, for maintaining the
Premises and each and every part thereof throughout the Term of this Lease, and agrees, without
limitation, to: (i) ensure that the Premises are in compliance with Laws; and (ii) maintain the
Premises in

11

 

good order and repair in compliance with the terms of this Lease throughout the Term. All
work performed by the Tenant shall be done in a good and workmanlike manner and in compliance with
all applicable Laws. The Tenant shall not permit or commit any nuisance or unlawful conduct.

ARTICLE 8

Environmental Indemnity; Reservation of Rights Under the Federal Facilities Agreement

          8.1. Definitions Related to Hazardous Materials.

          (a) For purposes of this Lease, “Hazardous Materials” include and mean substances
defined or classified as a “hazardous substance”, “hazardous material”, “hazardous waste”,
“pollutant”, or otherwise denominated as a regulated or hazardous substance, waste or material,
toxic or pollutant in any of the following: (i) the federal Comprehensive Environmental Response,
Compensation and Liability Act of 1980; (ii) the federal Hazardous Materials Transportation Uniform
Safety Act of 1990; (iii) the federal Toxic Substances Control Act; (iv) the federal Resource
Conservation and Recovery Act; (v) Massachusetts General Laws, Chapter 21D; (vi) Massachusetts
General Laws, Chapter 21E; (vii) Massachusetts General Laws, Chapter 21C; (viii) Massachusetts
General Laws, Chapter 21I; (ix)-any other federal, state or local law addressing itself to
environmental contamination, waste or health and safety; or (x) any regulations promulgated under
any of the foregoing, including, without limitation, the regulations promulgated under M.G.L. c.
21E at 310 CMR 40.000 et seq. (the “Massachusetts Contingency Plan” or “MCP”); as
any of the foregoing may be promulgated or amended (collectively, the “Environmental
Laws”). “Hazardous Materials” shall specifically include, but not be limited to, oil,
asbestos, explosives, polychlorinated biphenyls, petroleum and petroleum-based derivatives, and
urea formaldehyde.

          (b) “Remedial Work” as used in this Article 8 shall mean investigations, assessments,
monitoring, response actions, remedial actions or interim cleanup actions relating to known or
suspected Hazardous Materials.

          8.2. Release of Hazardous Materials.

          Tenant, for itself and its subtenants and each of their respective agents, employees,
consultants, subconsultants, contractors, subcontractors, affiliates and invitees and anyone
claiming by or through any of them (such parties other than Tenant being referred to as
“Tenant’s Agents”) covenants and agrees during the Term (i) not to release or dispose of
Hazardous Materials, or allow any threat of release of any Hazardous Materials, at, on, under, to
or from the Land in violation of any Environmental Laws; (ii) except where incidental to Permitted
Uses and managed, generated, used, stored and transported in compliance with the Environmental Laws
and so as not to constitute a release or threat of release to the environment of any Hazardous
Materials, not to allow the manufacture, treatment, storage or presence of any Hazardous Materials
at the Land, or transportation of any Hazardous Materials from or onto the Land; (iii) to comply
with the Environmental Laws with respect to the Land, and (iv) to perform and pay for all Remedial
Work required under the Environmental Laws or reasonably necessary for the Permitted Uses to
address any Hazardous Materials, except as otherwise provided in Section 8.7 hereof with respect to
the obligations of the Department of the Army as Grantor under the Army Deed (as hereinafter
defined in Section 8.5).

          8.3. Indemnity. The Tenant agrees to indemnify and hold the Landlord and its
employees, contractors, representatives and agents harmless from any costs (including Legal
Costs), claims,

12

 

judgments, damages, penalties, fines, liabilities or losses of every nature and kind whether
at law or in equity arising, out of or in any way relating to the presence, release,
transportation, treatment, migration, storage or disposal of Hazardous Materials on or relating
to the Land as a result of Tenant’s activities (including without limitation all such persons
claiming by, through or under Tenant) on or operations on the Land or in connection with the
Improvements to be constructed thereon during the Term of this Lease (which for purposes of this
Lease shall include the work conducted by the Tenant under that certain Non-Exclusive
License/Access Agreement dated June 15, 2007, as amended) (“Tenant’s Indemnity”).
Tenant’s Indemnity shall specifically cover, without limitation, the following: Remedial Work,
consultants’ fees, response costs, potentially responsible party group costs, investigation and
defense costs, and experts’ fees; all costs and damages, including natural resource damages, in
connection with requirements or claims of any Government Authority or in connection with Third
Party Claims, including sums paid in settlement of claims, regardless of whether any of such
requirements or claims prove true or warranted; all costs of the enforcement of the Tenant’s
obligations hereunder.

          Tenant’s Indemnity shall survive the expiration or termination of this Lease or any transfer
of all or any portion of the Land, or of any interest in this Lease.

          8.4. Landlord’s Right to Inspect.

          To the extent required by any Governmental Authority or by any applicable Laws, Landlord and
its officers, employees, contractors or agents shall have the right, but not the duty, except as
set forth in Section 8.7, following reasonable advance notice of no less than seven (7) business
days (except in the case of an emergency), to enter upon the Land from time to time for the
purposes of inspections and other actions required in order to comply with applicable Laws.
Landlord shall not be liable to Tenant in any manner for any expense, loss or damage occurring by
reason of the aforesaid entries, nor shall the exercise of any such right be deemed an eviction or
disturbance of Tenant’s use or possession, provided that, subject to the terms and provisions of
the matters set forth on Schedule 1.1 hereto, the Landlord shall make all reasonable efforts to
coordinate such entry so as to minimize any adverse impact to Tenant’s normal operations at the
Land.

          8.5. Reservation of Rights Under the Federal Facilities Agreement. Pursuant to the
terms of a certain Quitclaim Deed (the “Army Deed”) dated as of May 9, 1996 from the
Department of the Army (the “Army” or the “Grantor”) to Landlord (the
“Grantee”) and recorded with the Worcester County (Worcester District) Registry of Deeds
(the “Registry”) in Book 17906, Page 1, the following provision that was contained
therein must be set forth in future instruments transferring an interest in property conveyed to
the Landlord by the Army, including the Land:

          By accepting this Deed, the Grantee acknowledges that the Grantor has provided
the Grantee with a copy of the Federal Facilities Agreement (the “FFA”) between the
Grantor and the U.S. Environmental Protection Agency (the “EPA”), dated May 11,
1991, and the modification thereto, dated March 26, 1996. The Grantor shall provide
the Grantee with a copy of any future amendments to the FFA.

A. The Grantor, EPA, and the Commonwealth of Massachusetts, and their agents,
employees, and contractors, shall have access to and over the Property as may be
necessary for any investigation, response, or corrective action pursuant to CERCLA
or the FFA found to be necessary before or after the date of this Deed on the
Property or on other property comprising the Fort Devens National Priorities List
(the “NPL”) site. This reservation includes the right to access

13

 

to and use of, to the extent permitted by law, any available utilities at reasonable
cost to the United States.

B. In exercising the rights hereunder, the United States and the Commonwealth shall
give the Grantee or its successors or assigns reasonable notice of actions taken on
the Property under the FFA and shall, to the extent reasonable, consistent with the
FFA, and at no additional cost to the United States, endeavor to minimize the
disruption to the Grantee’s, its successors’, or assigns’ use of the Property.

C. The Grantee agrees that notwithstanding any other provision of the Deed, the
United States assumes no liability to the Grantee, its successors, or assigns, or
any other person, should implementation of the FFA interfere with the use of the
Property. The Grantee and its successors and assigns shall have no claim on account
of any such interference against the United States or the Commonwealth or any
officer, agent, employee, or contractor thereof.

D. Prior to the determination by the United States that all remedial action is
complete under CERCLA and the FFA for the Fort Devens NPL site, (i) the Grantee, its
successors and assigns, shall not undertake activities on the Property that would
interfere with or impede the completion of the CERCLA clean-up at the Fort Devens
NPL site and shall give prior written notice to the Grantor, EPA, and the
Commonwealth of any construction, alterations, or similar work on the Property that
may interfere with or impede said clean-up; and (ii) the Grantee shall comply with
any institutional controls established or put in place by the Grantor relating to
the Property which are required by any record of decision (“ROD”) or amendments
thereto, related to the Property, which ROD was approved by the Grantor and EPA and
issued by the Grantor pursuant to CERCLA or the FFA before or after the date of this
Deed. Additionally, the Grantee shall ensure that any leasehold it grants in the
Property or any fee interest conveyance of any portion for the Property provides for
legally-binding compliance with the institutional controls required by any such ROD.

E. For any portion of the Property subject to a response action under CERCLA or the
FFA, prior to the conveyance of an interest therein, the Grantee shall include in
all conveyances provisions for allowing the continued operation of any monitoring
wells, treatment facilities, or other response activities undertaken pursuant to
CERCLA or the FFA on said portion of the Property and shall notify the Grantor, EPA,
and the Commonwealth by certified mail, at least sixty (60) days prior to any such
conveyance of an interest in said property, which notice shall include a description
of said provisions allowing for the continued operation of any monitoring wells,
treatment facilities, or other response activities undertaken pursuant to CERCLA or
the FFA.

F. Prior to the determination by the United States that all remedial action under
CERCLA and the FFA is complete under CERCLA and the FFA for the Fort Devens NPL
site, the Grantee and all subsequent transferees of an interest in any portion of
the Property will provide copies of the instrument evidencing such transaction to
the Commonwealth, the EPA, and the Grantor by certified mail, within fourteen (14)
days after the effective date of such transaction.

G. The Grantee and all subsequent transferees shall include the provisions of this
Section VIII in all subsequent leases, transfer, or conveyance documents relating to
the Property or any portion thereof that are entered into prior to a determination
by the United States that all remedial action is complete at the Fort Devens NPL
site.”

     8.6. Monitoring Wells and Access Thereto. In addition to the Tenant’s obligations
under Section 8.5, Landlord hereby notifies Tenant that there are two monitoring wells,
57M-96-09X and G3M-93-09X, located on the Land and shown on a sketch plan prepared by the
Landlord and attached hereto as Exhibit D. The Tenant acknowledges its obligations pursuant to
Section 8.5 hereof and the Army Deed with respect to the continued operations of such monitoring
wells, treatment facilities or other response activities undertaken pursuant to CERCLA or the FFA
on any portion of the Land, including a right of access to the Landlord and the Army, and shall
notify the Army, the Environmental

14

 

Protection Agency and the Commonwealth of Massachusetts by certified mail sixty (60) days
prior to any conveyance of an interest in the Land, which notice shall include a description of
said provisions allowing for the continued operation of any monitoring wells, treatment
facilities or other response actions undertaken pursuant to CERCLA or the FFA.

          8.7. Landlord to Exercise Its Rights under the Army Deed. The Landlord shall take
all actions reasonably necessary to enforce the obligations of the Grantor under the Army Deed
related to Hazardous Materials for which the Landlord is indemnified under the Army Deed.

          8.8. Receipt of Documents. The Tenant acknowledges that it has received a copy of
the Army Deed, the FFA and a copy of the Administrative Consent Order and Covenant Not to Sue,
ACO-CE-96-3001, and is familiar with the content of said documents.

ARTICLE 9

Mortgages of Tenant’s Interest

          9.1. Permitted Mortgages. The Tenant from time to time during the Term of this
Lease may make one or more leasehold mortgages or collateral assignments of this Lease and the
leasehold estate in the Land created hereby (each a “Leasehold Mortgage”) provided as a
condition thereof such Leasehold Mortgage must comply with the following requirements:

          (a) Each Leasehold Mortgage shall convey no interest in any real property other than the
Tenant’s interest in this Lease and the Improvements constructed on the Land during the Term of
this Lease. The fee interest of the Landlord in the Land shall never be subordinated to any
Leasehold Mortgage, nor will Base Rent or Additional Rent or any other payments hereunder be
subordinated to any such Leasehold Mortgage.

          (b) The holder of each Leasehold Mortgage (a “Leasehold Mortgagee”) must be a Lending
Institution (as defined in Section 9.5).

          (c) There may be an unlimited number of Leasehold Mortgages of this Lease and the leasehold
estate created hereby at any one time provided however that, notwithstanding any provision of this
Lease to the contrary, the Landlord shall not be required to give notices, statements or other
written communications to any leasehold mortgagee other than the Leasehold Mortgagee (defined
below) holding the first priority leasehold mortgage on the Tenant’s leasehold interest hereunder.

          (d) The holder of each leasehold mortgage must agree in writing upon taking possession of the
Land to cure all Events of Default of which it has notice in accordance with the provisions of
Section 9.4 hereof, and to otherwise comply with any obligations imposed upon Leasehold Mortgagees
under Section 9.4.

          9.2. Notice of Mortgage. No Leasehold Mortgagee shall have the rights or benefits
mentioned in this Article, nor shall the obligations of the Landlord be binding upon the
Leasehold Mortgagee, unless and until a notice of such Leasehold Mortgage and of each assignment
thereof, containing the full name and address of such Leasehold Mortgagee, the term of such
mortgage, and a representation from the Tenant and the Leasehold Mortgagee that the Leasehold
Mortgage is in compliance with the provisions of Section 9.1 (a) — (e), shall have been delivered
to and received by the Landlord, notwithstanding any other form of notice, actual or
constructive.

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          9.3. Status Report. The Landlord agrees at any time and from time to time, upon not
less than twenty (20) days prior written request by a Leasehold Mortgagee or proposed Leasehold
Mortgagee, to execute, acknowledge and deliver to such Leasehold Mortgagee or proposed Leasehold
Mortgagee a statement in writing certifying that this Lease 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), that either no Event of Default exists and no event has
occurred which, with the passage of time or the giving of notice or both, would constitute an
Event of Default hereunder or specifying the Event of Default which has occurred, the dates to
which the Base Rent and other charges have been paid in advance, if any, and such additional
items as a Leasehold Mortgagee or proposed Leasehold Mortgagee may reasonably require, it being
intended that any such statement delivered pursuant to this Section 9.3 may be relied upon by any
Leasehold Mortgagee or proposed Leasehold Mortgagee or assignee of any Leasehold Mortgagee. In
connection therewith, the Landlord may require that the Tenant provide to the Landlord a
certification as to the existence of any Event of Default or such other information to be
included in the Landlord’s statement hereunder, and if the Landlord so requires, then the
Landlord may rely on such certification in its statement and the Landlord shall not be liable for
or bound by any material inaccuracy or omission contained in the Landlord’s statement to the
extent of any material inaccuracy or omission contained in the Tenant’s certification to the
Landlord.

          9.4. Protection of Leasehold Mortgagee. If the Tenant, or the Tenant’s successors
or assigns, shall mortgage this Lease in compliance with the provisions of this Article 9, then
so long as any such Leasehold Mortgage shall remain unsatisfied of record, the following
provisions shall apply:

          (a) Notice of Default. The Landlord, upon serving upon the Tenant any notice of
default pursuant to the provisions of Article 17 hereof, or any other notice under the provisions
of or with respect to this Lease, shall also serve a copy of such notice upon the Leasehold
Mortgagees of which the Landlord has notice pursuant to Section 9.2 hereof holding the first
priority mortgage on the leasehold estate hereunder, in accordance with Section 22.14 hereof.

          (b) Right to Remedy Defaults. Any Leasehold Mortgagee, in case the Tenant shall be in
default hereunder, shall have the right to remedy such default, or cause the same to be remedied,
during the cure time (if any) following notice of default provided in Section 17.1 and any
additional time as may be provided in Section 9.4(c), and the Landlord shall accept such
performance by or at the instance of such Leasehold Mortgagee as if the same had been made by the
Tenant. In addition, any Leasehold Mortgagee shall have the right to remedy such default, or cause
the same to be remedied, within ten (10) days of the expiration of the Tenant’s cure period under
Section 17.1 if such default is a monetary default, and within thirty (30) days of the expiration
of the Tenant’s cure period under Section 17.1 if such default is a non-monetary default.

          (c) Leasehold Mortgagee’s Right to Prevent Termination/Exercise Purchase Option.
Anything herein contained to the contrary notwithstanding, upon the occurrence of any Event of
Default, the Landlord shall take no action to effect a termination of this Lease without first
giving to the Leasehold Mortgagee written notice thereof and a reasonable time thereafter, such
reasonable time to be determined by the Landlord in its reasonable discretion, and in any event
such reasonable time not to exceed six (6) months (such reasonable time being referred to in this
Lease as the “Forbearance Period”), within which either (i) to obtain possession of the
Premises (including possession by a receiver) or (ii) to institute, prosecute and complete
foreclosure proceedings or otherwise acquire the Tenant’s interest under this Lease with diligence
and, subject to the Leasehold Mortgagee’s obligation to perform all obligations

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arising from time to time as they become due during the Forbearance Period as provided below,
to assume all of the Tenant’s obligations under this Lease. Notwithstanding anything contained in
this Lease to the contrary, a Leasehold Mortgagee shall be required to comply with the obligations
of the Tenant to maintain the Premises in compliance with Laws and to make and keep the Premises
safe and buildable, and with respect to the Leasehold Mortgagee’s obligation to make and keep the
Premises safe and buildable, the Leasehold Mortgagee shall be required to take all reasonable
measures to make the Premises safe within sixty (60) days of receipt of notice from the Landlord
that an Event of Default has occurred.

          (d) Exercise of Remedies. In the event that the Leasehold Mortgagee holding the
Exclusive Leasehold Mortgagee Rights (as defined in Section 9.4(f)) seeks to exercise its available
remedies under its leasehold mortgage, then the commencement of such exercise shall be an automatic
exercise by said Leasehold Mortgagee of the Tenant’s option to purchase the Land, and shall be
subject to the provisions of Article 23 hereof, including without limitation the execution and
delivery of the Purchase Agreement as defined in Section 23.1 hereof. In the event that said
Leasehold Mortgagee commences such exercise but fails to acquire the Land on the scheduled closing
date established under the Purchase Agreement and such failure is not solely and directly due to
the inability of the Landlord to close due to a default or otherwise, then the provision of Article
10.2.1(c) hereof shall be applicable and annual Base Rent hereunder shall increase to fair market
rent for the Property, determined in accordance with the procedures set forth in Schedule 9.4(d)
hereof, taking into consideration the Permitted Uses as such Permitted Uses may be modified as
provided below, and effective as of the scheduled closing date under the Purchase Agreement.
Furthermore, in such event, neither said Leasehold Mortgagee nor any assignee of said Leasehold
Mortgagee shall have the benefit of any First Option Term nor Second Option Term if not previously
exercised by the Tenant pursuant to the provisions of Section 1.5 hereof. However, in such event,
said Leasehold Mortgagee may seek the consent of the Landlord, such consent not to be unreasonably
withheld, conditioned or delayed, to change the use of the Land from the Permitted Uses under
Section 2.1 to another use, so long as such other use is in compliance with Laws.

          (e) Insurance. The Landlord agrees that the name of any Leasehold Mortgagee may be
added to the “Loss Payable Endorsement” of any and all insurance policies required to be carried by
the Tenant hereunder.

          (f) Benefit of Provisions. The provisions of this Article 9 are for the benefit of,
and are to be enforceable by, each Leasehold Mortgagee to the extent more than one Leasehold
Mortgage is permitted to be granted hereunder. If there is more than one Leasehold Mortgagee, the
senior Leasehold Mortgagee shall be entitled to exercise the remedies of a Leasehold Mortgagee
which are by their nature impossible or impractical to be exercised by more than one Leasehold
Mortgagee (collectively, “Exclusive Leasehold Mortgagee Rights”). Unless a Leasehold
Mortgagee provides the Landlord with written evidence to the contrary in the form of a
subordination or intercreditor agreement executed by the relevant Leasehold Mortgagees, the
Leasehold Mortgagee who is the first Leasehold Mortgagee of record shall be deemed to be the senior
Leasehold Mortgagee and the holder of the Exclusive Leasehold Mortgagee Rights. The Landlord may
rely on a current certification or commitment of the title insurance company providing title
insurance to the Tenant (or if none, a title insurance company chosen by the Landlord) with respect
to the Premises as to which Leasehold Mortgagee is the first Leasehold Mortgagee of record. All
reasonable costs, including Legal Costs, incurred by the Landlord in connection with such
certification or commitment shall be paid by the Tenant as Additional Rent. To the extent that
there is more than one Leasehold Mortgagee at any time, all references to “Leasehold Mortgagee”
contained in this Lease shall be read in the context of and subject to the terms of this Section
9.4(f).

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          (g) Modification. No agreement between the Landlord and the Tenant modifying,
canceling or surrendering this Lease shall be effective without the prior written consent of the
Leasehold Mortgagee.

          (h) Merger. No union of the interests of the Landlord and the Tenant herein shall
result in a merger of this Lease with the fee interest.

          9.5. Lending Institutions. A “Lending Institution” shall mean a national bank,
commercial bank, savings bank, savings and loan institution, trust or insurance company, real
estate investment trust, pension, welfare or retirement fund, conduit lender or investment
banking firm or any combination of the foregoing, or any other institutional, or the like, lender
who traditionally makes loans secured by real estate interests and is authorized to lend money in
the Commonwealth of Massachusetts under Laws, or any other lender approved by the Landlord, such
approval not to be unreasonably withheld.

ARTICLE 10

Assignment and Subletting

          10.1. Subletting. The Tenant may not sublet all or any portion of the Land without
the prior written consent of the Landlord which consent shall not be unreasonably withheld,
conditioned or delayed. If consent to a subletting is granted, such subletting conditions would
include at a minimum, the proviso that (i) such subletting complies with all of the provisions of
this Article 10; (ii) the sublease with the permitted subtenant is in all respects consistent
with, and in accordance with, this Lease, including without limitation Section 2.1 hereof and
(iii) the following information and documentation is provided to the Landlord at least thirty
(30) days prior to the effective date of such subletting:

	 	A.	 	The name of the proposed subtenant and a copy of the proposed form of sublease
(with a duly executed copy of such sublease to promptly follow upon execution thereof);
	 
	 	B.	 	Evidence that the proposed subtenant’s business is in compliance with the
Permitted Uses of the Land;
	 
	 	C.	 	Certificates of Good Standing (or certificates of qualification to do business
in the Commonwealth of Massachusetts if such subtenant is a foreign entity) of the
proposed subtenant issued by the Secretary of the Commonwealth of Massachusetts;

          In the event of any subletting of all or any portion of the Premises, it shall be a condition
of any such sublease that the subtenant agree in writing with the Landlord that the subtenant will
not breach, nor cause the Tenant to breach, any of the provisions of this Lease. Furthermore, any
such subletting shall not relieve the Tenant of its obligations under this Lease. Finally, it
shall be a condition of any such subletting that: (i) each sublease shall be subject and
subordinate to this Lease and the rights of the Landlord hereunder; (ii) any violation of any
provision of this Lease, whether by act or omission by any subtenant shall be deemed a violation of
such provision by the Tenant, it being the intention and meaning of the parties that the Tenant
shall assume and be liable to the Landlord for any and all acts and omissions of any and all
subtenants with respect to this Lease, provided, that this Lease shall not be terminated due to
default of any subtenant so long as such default does not constitute or result in an Event of
Default under this Lease; (iii) each such sublease shall provide that in the event this Lease is
terminated prior to

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the expiration of such sublease, then at Landlord’s option, the subtenant thereunder will either
attorn to the Landlord and waive any right the subtenant may have to terminate the sublease, or
surrender possession thereunder as a result of the termination of this Lease, and the sublease
shall terminate simultaneously with the termination or expiration of the Lease; and (iv) subject to
the rights of any Leasehold Mortgagee hereunder, each sublease shall provide that in the event the
subtenant receives a written notice from the Landlord stating that an Event of Default has occurred
under this Lease, the subtenant shall thereafter be obligated to pay all rentals accruing under
such sublease directly to the Landlord or as the Landlord may direct. No sublease shall affect the
Permitted Uses. Any attempted sublease in violation of the terms of this Article 10 shall be void.
Tenant shall not directly or indirectly collect or accept any payment of rent under any sublease
for any period in excess of thirty (30) days in advance.

          10.2. Assignment.

          10.2.1 Except as otherwise provided in Article 9 hereof, the Tenant shall not, directly or
indirectly, assign or otherwise transfer its interest under this Lease without the Landlord’s prior
written consent, which may be withheld or granted in Landlord’s sole and absolute discretion,
except as provided in subsection 10.2.1(c) below.

          (a) In the event that the Tenant obtains Landlord’s consent, it shall be a condition of any
such assignment that: (i) each assignment shall be subject and subordinate to this Lease and the
rights of the Landlord hereunder; and (ii) any violation of any provision of this Lease, whether by
act or omission by any assignee shall be deemed a violation of such provision by the Tenant, it
being the intention and meaning of the parties that the Tenant shall be liable to the Landlord
jointly with such assignee for any and all acts and omissions of any and all assignees with respect
to this Lease.

          (b) Notwithstanding the foregoing, however, Tenant may assign, transfer or otherwise alienate
its entire interest under this Lease to an entity which is not a Prohibited Person (as defined in a
certain Project Grant Agreement between the Landlord and the Tenant dated as of November 20, 2007,
attached to this Lease as Exhibit E (the “Project Grant Agreement”)) and (a) is
controlling, controlled by, or under common control with Tenant, (b) is the assignee under a
so-called sale/leaseback transaction pursuant to which the assignee shall assume all obligations of
Tenant hereunder and will remain jointly and severally liable with the assignee for Tenant’s
obligations under this Lease and whereby Tenant shall be the sole tenant under this Lease, or (c)
acquires, or to which there is transferred, whether by merger or otherwise, substantially all of
the assets of Tenant or to an entity from which, whether by merger or otherwise, Tenant acquires
all or substantially all of the assets of such entity (each, a “Merger or Acquisition
Event”); provided, further, that promptly after such a Merger or Acquisition Event, Tenant
shall notify Landlord of such event and provide Landlord with sufficient financial information to
enable Landlord to determine that the new entity has the financial capability to fulfill Tenant’s
obligations under this Lease. Within ten (10) days of such assignment under this Section
10.2.2(c), the Tenant shall execute and deliver to Landlord an assignment and assumption agreement
whereby the successor tenant assume all obligations of Tenant under this Lease, and agrees with
Landlord to be bound by all of the terms and provisions hereof.

          (c) In the event that the Leasehold Mortgagee holding the Exclusive Leasehold Mortgagee Rights
(as defined in Section 9.4(f)) seeks to exercise its available remedies under its leasehold
mortgage, then, as provided in Section 9.4(d) hereof, the commencement of such exercise shall be an
automatic exercise by said Leasehold Mortgagee of the Tenant’s option to purchase the Land, and
shall be subject to

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the provisions of Article 23 hereof, including without limitation the execution and delivery
of the Purchase and Sale Agreement as contemplated by Section 23.1. However, in the event that
said Leasehold Mortgagee commences such exercise, including without limitation the execution and
delivery of the Purchase and Sale Agreement as contemplated by Section 23.1 hereof, but fails to
acquire the Property on the closing date established under the Purchase and Sale Agreement, and
such failure is soley and directly a result of a default by the Seller beyond any applicable notice
and cure period, then annual Base Rent hereunder shall automatically increase to fair market rent
for the Land, determined as provided in Schedule 9.4(d) hereof, and in such instance the subsequent
assignment to a third party by said Leasehold Mortgagee hereunder shall be subject to Landlord’s
prior written consent, such consent not to be unreasonably withheld as opposed to a sole discretion
standard.

          10.3. Expenses of Landlord. Tenant shall pay all expenses incurred by the Landlord,
including reasonable attorneys’ fees and disbursements, in connection with any request by the
Tenant for consent by the Landlord to subletting or assignment of this Lease.

ARTICLE 11

Casualty Damage

          11.1. Restoration. In the event of a casualty to the Project, if the Tenant elects
to restore the Project, then Tenant, at Tenant’s sole cost and expense, and with all due
diligence, and without regard to the coverage, amount or availability of proceeds of any
insurance, shall restore, repair, replace or rebuild the Project to the extent as Tenant shall
determine necessary for the Permitted Uses, subject to receipt of any approvals required to
effectuate such restoration and compliance with the requirements of this Lease. Prior to the
commencement of any such reconstruction, Tenant shall provide the Landlord with documentation to
substantiate funds available to return the Land to a safe and buildable condition with all
structures and other improvements removed from the Land, unless otherwise elected by the
Landlord.

          11.2. Conditions of Work. Except as otherwise provided in this Article 11, the
conditions under which any Work is to be performed and the method of proceeding with and
performing the same shall be governed by all of the provisions of Article 19.

ARTICLE 12

Eminent Domain and Public Dedication

          12.1. Total, Partial Taking; Termination of Lease. If, during the Term, there is
any taking of all or any part of the Land and the Improvements or any interest in this Lease by
(i) the taking or condemnation by any public or quasi-public authority, or private corporation or
individual having the power of condemnation (“Condemnor”) of the title to or the
possession or use of all or part of the Land by virtue of eminent domain or for any public or
quasi-public use and (ii) a voluntary sale or transfer by the Landlord to any Condemnor, either
under threat of condemnation or while legal proceedings for condemnation are pending
(“Condemnation”), the rights and obligations of the Landlord and the Tenant shall be as
follows:

          12.1.1 Total Taking.

          If title to the whole or substantially all of the Land and Improvements shall be taken by
Condemnation, this Lease shall terminate and expire on the date of such Condemnation and the

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Additional Rent reserved shall be apportioned and paid to the date of such Condemnation,
except that, if not reduced or eliminated due to the Tenant seeking a real estate tax abatement
proceeding in accordance with applicable Laws, the Tenant shall pay the Impositions due as of the
date of the Condemnation, including without limitation any amounts due under the TIF Agreement up
to the date of such Condemnation. There shall be no adjustment or reapportionment of Base Rent.

          12.1.2 Partial Taking.

          If title to less than the whole or substantially all of the Land and Improvements shall be
taken by Condemnation and the portion of the Land and Improvements remaining is not of a size to
permit the Premises to be used for the Permitted Uses with the amount of the total compensation,
sums or anything of value awarded, paid or received in a total or a partial Condemnation Award (an
“Award”) available therefor so as to constitute the same economic value and usefulness as
immediately before such Condemnation, the Tenant or the Landlord may, at their option, terminate
this Lease within ninety (90) days after such condemnation by serving upon the other party at any
time within said ninety (90) day period, a thirty (30) day written notice of such party’s election
to so terminate accompanied by a certificate of such party showing, in detail, that the remaining
portion of the Land and Improvements are not of a size to permit the Land and Improvements to be
used for the Permitted Uses so as to constitute the same usefulness as immediately before such
Condemnation. Upon such termination, the Tenant shall not be entitled to any abatement or
reduction of Base Rent under this Lease.

          12.1.3 Distribution of Award.

          In the event of a Condemnation and the termination of this Lease, the Award shall be
distributed according to the following priority:

          (a) First, to the Leasehold Mortgagee in the amount of the outstanding amount under, and all
other sums secured by, its Leasehold Mortgage, but only to the extent that such sums do not exceed
the value of the Tenant’s interest in the Improvements, determined at the time of such condemnation
was granted;

          (b) Second, to the Tenant in the amount of its interest in the Improvements, less any amounts
in respect thereof distributed to any leasehold mortgagee under (a) above;

          (c) Third, to the Landlord and the Tenant in the proportion which the value of Landlord’s
reversionary interest in the Land, and the value of the Tenant’s leasehold estate hereunder,
respectively, bears to the total of the two, until an amount equal to the value of the Tenant’s
leasehold estate less the amount distributed to its Leasehold Mortgagee under clause (a) above has
been distributed to the Tenant; and

          (d) the balance (if any) of the Award to the Landlord.

          Any payments to be made to the Tenant under the provisions of this Section 12.1.3 are
subject to the condition that no Event of Default, and no condition or circumstance which
with the giving of notice or the passage of time would constitute an Event of Default
hereunder, exists on the Termination Date and if any such Event of Default or condition or
circumstance should then exist, the amount of said payments due to the Tenant shall be
reduced by such amount as may be reasonably required to remedy any such Event of Default or
condition or circumstance.

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          12.2. Partial Taking — Lease Continues. In the event of a Condemnation that does
not result in a termination of this Lease, the Term of this Lease shall not be reduced or
affected in any way. The Tenant shall, after any such Partial Taking, and at its sole cost and
expense, repair or cause the repair of any damage caused by such Partial Taking in conformity
with the requirements contained or referred to in Section 11 hereof as to restoration after a
casualty, or at Tenant’s option make the Land safe and buildable, so that the Land will be in
compliance with the standards contained in said Section 11. (Such repairs or restoration,
including any changes and alterations and including temporary repairs, are referred to in this
Section 12.2 as the “Work”.) Upon completion of such restoration, any remaining portion of the
Award will be paid (i) first, to the Landlord to the extent of the value of the Landlord’s
interest in the Award (based upon the value of the Landlord’s reversionary interest in the Land
as encumbered by this Lease) and (ii) thereafter to the Tenant. If the cost of the Work exceeds
the amount of the Award, the deficiency shall be paid by the Tenant.

          12.3. Intentionally Deleted.

          12.4. Restoration of the Land. In the event of a Condemnation which does not result
in a termination of this Lease and this Lease is otherwise in full force and effect, the Tenant,
at its sole cost and expense shall proceed with reasonable diligence and continuously to repair
and restore the remaining part of the Premises to a condition sufficient for the Permitted Uses
and so as to be in compliance with all Laws.

          12.5. Intentionally Deleted.

          12.6. Intentionally Deleted

          12.7. Abatement of Base Rent. There shall be no adjustment or abatement of Base
Rent as a result of a Condemnation.

          12.8. Temporary Taking. If the whole or any part of the Land or of the Tenant’s
interest in this Lease shall be taken by Condemnation for a temporary use or occupancy, the Term
shall not be reduced or affected in any way and the Tenant shall be liable for all obligations
under this Lease, including the payment of the Base Rent and Additional Rent, without reduction
or abatement, in the manner and at the times herein specified and, except only to the extent that
the Tenant is prevented from so doing pursuant to the terms of the order of the Condemnation, the
Tenant shall continue to perform and observe all of the other covenants and agreements hereof as
though such Condemnation had not occurred. In the event of any such Condemnation for a temporary
use or occupancy, the Tenant shall be entitled to receive the entire amount of any Award whether
such Award is paid by way of damages, rent or otherwise, unless such period of temporary use or
occupancy shall extend beyond the Term in which case such Award, after payment to the Landlord
therefrom of the estimated cost of restoration of the Land to the extent that the Award is
intended to compensate for damages to the Land (unless the Tenant restores the Land in which
event such portion of the Award attributable to the cost of restoration shall be the property of
the Tenant), shall be apportioned by the Landlord and the Tenant as of the termination date in
the same ratio that the part of the entire period for which such compensation is made falling
before the termination date and that part falling after, bear to such entire period.

          12.9. Rights of Participation. Each party shall have the right, at its own expense,
to appear in a Condemnation proceeding and to participate in any and all hearings and trials.

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          12.10. Notice of Proceeding. In the event Landlord or Tenant shall receive notice
of any proposed or pending Condemnation affecting the Land, the party receiving such notice shall
promptly notify the other party of the receipt and contents thereof.

ARTICLE 13

Intentionally Omitted

ARTICLE 14

No Broker Representation

          The Tenant represents and warrants to the Landlord that the Tenant has not dealt with any
broker or other person who might be entitled to a commission or similar fee in connection with this
Lease or any transaction contemplated hereby or referred to herein. The Tenant hereby agrees to
indemnify the Landlord and to hold it harmless from and against any and all loss, liability, claim,
cost or expense (including Legal Costs) arising from a breach of the aforesaid representation of
the Tenant.

          The Landlord represents and warrants to the Tenant that the Landlord has not dealt with any
broker or other person who might be entitled to a commission or similar fee in connection with this
Lease or any transaction contemplated hereby or referred to herein. The Landlord hereby agrees to
indemnify the Tenant and to hold it harmless from and against any and all loss, liability, claim,
cost or expense (including Legal Costs) arising from a breach of the aforesaid representation of
the Landlord.

ARTICLE 15

Quiet Enjoyment

          The Landlord agrees that if Tenant shall pay the Base Rent and Additional Rent and perform,
fulfill and observe the other obligations and liabilities of Tenant herein, subject to Tenant’s
available notice and cure rights hereunder, Tenant shall peacefully and quietly have, hold and
enjoy the Land without any manner of hindrance or molestation by the Landlord or anyone lawfully
claiming by, through or under the Landlord, subject to all of the provisions of this Lease.

ARTICLE 16

End of Term

          Upon the expiration or other termination of this Lease, including without limitation pursuant
to the Tenant’s Termination Option (as defined in Article 1.2 hereof), Tenant shall quit and
surrender to the Landlord the Land, and Tenant shall demolish all buildings, structures and
fixtures on the Land and shall return the Land free of all buildings, structures and other
improvements and in a safe and buildable condition; provided however that the Landlord shall have
the option of requiring, within ninety (90) days prior to the end of the term of this Lease or
within fifteen (15) days prior to any unscheduled termination of this Lease, that the Tenant
surrender the Land with all buildings, structures and other improvements thereon, broom clean, in
good order and condition, and Tenant shall remove all of its movable personal property therefrom,
including all equipment specific to the Permitted Uses by the Tenant. Notwithstanding anything to
the contrary in this Article, the Tenant shall be required to remove all tanks located on the Land.

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ARTICLE 17

Default

          17.1. Events of Default. An “Event of Default” shall occur: (a) if the Tenant
shall neglect or fail to perform any of the monetary covenants, terms and provisions contained in
this Lease on Tenant’s part to be performed or observed as of the due date therefor; provided
however that an Event of Default shall not be deemed to have occurred until thirty (30) days
after the Tenant shall have received notice from the Landlord that such monetary covenant, term
or provision has not been complied with and continues uncured after the expiration of such thirty
(30) day period, or (b) if a default be made by Tenant in the performance or observance of any of
the covenants, terms or provisions contained in Sections 10.1 or 10.2 and such default is not
cured within thirty (30) days after the Tenant shall have received notice from the Landlord that
such covenant, term or condition has not been complied with, or (c) if the Tenant shall neglect
or fail to perform its obligations under Article 5 to effect, maintain or renew any insurance
coverages provided for in Article 5 within three (3) business days after receipt of notice of
default from the Landlord, or (d) if the Tenant shall neglect or fail to perform any of the other
non-monetary covenants, terms or provisions contained in this Lease on the Tenant’s part to be
performed or observed within thirty (30) days after receipt of notice of default from the
Landlord, or such additional time beyond said 30-day period after receipt of notice of default
from the Landlord, as may be reasonably required to correct any non-monetary default, provided,
in connection with any cure period exceeding thirty (30) days, that the Tenant is diligently and
continuously pursuing a timely cure for such non-monetary default and such non-monetary default
is of a nature which is susceptible of cure and is not of a nature which could result in criminal
sanctions or a forfeiture of the Landlord’s interest in the Land and does not constitute a threat
to public health or safety as reasonably determined by the Landlord which has not been addressed
by the Tenant securing the Land and making the Land safe such that, in the Landlord’s judgment
reasonably exercised, no such threat exists, provided however that in the event that the Landlord
has determined that such threat to public health or safety exists at the Land and the Tenant
claims that such threat cannot be addressed and rectified by the Tenant because of the existence
of an event constituting Force Majeure affecting only the Tenant, then the Tenant shall notify
the Landlord of same and the Landlord shall then have the right, but not the obligation, to
address and rectify such threat, with the costs thereof, including Legal Costs, to be paid by the
Tenant in advance or (e) if Tenant’s estate shall be sold upon execution or if Tenant shall be
adjudicated bankrupt or insolvent, or if a receiver, trustee, or liquidating officer shall be
appointed with respect to the Land and is not discharged within ninety (90) days after
appointment, or if Tenant shall make an assignment for the benefit of its creditors by trust
mortgage, or otherwise, or if Tenant shall file a voluntary petition in bankruptcy or insolvency
under any bankruptcy or insolvency law now in force or hereafter enacted (Federal, State, or
otherwise), or if any such petition shall be filed involuntarily against Tenant and if such
petition shall not be discharged within ninety (90) days after its filing.

          17.2. Indemnity and Hold Harmless Provision. If an Event of Default shall occur,
without limiting any other rights or remedies the Landlord may have at law or in equity (the
Landlord expressly reserving the right to injunctive relief and/or specific performance) or under
this Lease, the Tenant shall indemnify and hold the Landlord harmless from all loss of Base Rent,
Additional Rent, damages, costs (including Legal Costs), and expenses which the Landlord may
incur from time to time by reason of the occurrence of the Event of Default, together with
interest on any unpaid rent at an annual rate which shall be as provided in Section 22.10 hereof
from the date on which the same shall be first due and payable, upon demand of the Landlord until
the date paid.

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          17.3. Landlord’s Right to Repossess. Subject to the rights of any Leasehold
Mortgagee specified in Sections 9.4 (a) and (c) hereof (provided that such Leasehold Mortgagee
has complied with all of its obligations under this Lease), should any Event of Default occur,
then, notwithstanding any former breach of covenant or waiver of the benefit hereof or consent in
a former instance, the Landlord lawfully may, in addition to any and all rights and remedies
otherwise available to the Landlord at law, in equity, and under this Lease, all of which are
cumulative, and which the Landlord expressly reserves, and which may be exercised by Landlord
sequentially or concurrently in any order, immediately or at any time thereafter, and without
demand or notice, enter into and upon the Land or any part thereof in the name of the whole and
repossess the same as of the Landlord’s former estate, and expel the Tenant and those claiming
through or under it and remove its or their effects (forcibly if necessary) without being deemed
guilty of any manner of trespass, and without prejudice to any rights or remedies which might
otherwise be used for arrears of Additional Rent or preceding breach of covenant and/or the
Landlord may send written notice to Tenant terminating the Term of this Lease; and upon the first
of such notice of termination, the Term of this Lease shall terminate. The Tenant covenants and
agrees, notwithstanding any termination of this Lease as aforesaid or any entry or reentry by the
Landlord, whether by summary proceedings, termination or otherwise, that the Tenant shall be and
remain liable for Base Rent paid to the Landlord under this Lease (and there shall be no
abatement or refund of any portion of the Base Rent) and the Additional Rent and other charges
reserved as they would, under the terms of this Lease, become due if this Lease had not been
terminated or if Landlord had not entered or re-entered as aforesaid, and whether the Land be
re-let or remain vacant, in whole or in part, or for a period less than the remainder of the
Term, and for the whole thereof. The Landlord shall have no obligation to re-let the Land and
shall have no obligation to mitigate damages upon the occurrence of an Event of Default
hereunder. Any such re-letting of the Land by the Landlord shall be for the benefit of the
Landlord.

ARTICLE 18

As Is Delivery Of The Land

The Tenant acknowledges that Tenant is accepting the Land in its AS IS condition, without warranty
or representation of any kind by the Landlord.

ARTICLE 19

Design and Construction of Initial Improvements

          19.1. Compliance with Permits, Etc.; Soil Management Plan; Definition of “Initial
Improvements”. All Initial Improvements and any Optional Improvements (as hereinafter
defined in Section 20) to the Land and any future changes thereto shall be in conformity with
this Lease, including all applicable Laws, and in conformity with all of the schematic plans and
approvals of the DEC, including without limitation the Unified Permit, and any other relevant
permitting authority, and the design approval requirements under the Barnum Road Master Plan
dated October 25, 2001. Under no circumstances shall soil be removed from the Land without the
prior approval of the Landlord, such approval not to be to be unreasonably withheld or delayed.
Any soil to be removed from the Land must be characterized in accordance with the General
Excavated Soil Management Plans, Devens, Massachusetts, prepared by Haley & Aldrich, Inc.
(November 1996), as amended in March 2000, prior to removal, as well as any applicable
Environmental Law, and Landlord’s policies and procedures of general applicability regarding UXO
screening, prior to removal. The Tenant shall first offer any clean soil to Landlord, for no
consideration. Landlord shall be responsible for removing the stock piled clean

25

 

soil at Landlord’s sole cost and expense, within a reasonable amount of time after receipt
of notice from Tenant of the availability of the stock piled soil and verification that the soil
is in fact clean under the Massachusetts Contingency Plan (310 CMR 40.000). In the event that
the Landlord does not desire the clean soil, Tenant shall remove the soil at its sole cost and
expense. Clean soils shall be defined for purposes of this paragraph as soils that do not
contain Oil or Hazardous Materials (as that term is defined in the MCP) at or above Method 1, S-1
standards. Without limiting the effect of any other provision of this Lease, Tenant shall and
hereby does agree to indemnify, defend and hold harmless Landlord against any and all damage,
cost, expense, claim, action or liability arising from or relating to the removal any soil from
the Land and any contamination caused by Tenant’s contractors or agents, removal, transportation
and/or disposal of the soils. “Initial Improvements” shall mean the construction of the first
phase of a facility for the design, manufacture and assembly of products for renewable energy
technologies and related functions including research and development, warehousing and
administration as well as associated parking, driveways, storage areas, loading bays and site
utilities, subject to and in compliance with the Unified Permit, but not including improvements
to be constructed or installed on the Land which shall be Optional Improvements under Article 20
hereof.

          19.2. Permits; Due Diligence. It shall be the Tenant’s responsibility to obtain and
pay for any and all permits, inspections, and local approvals (including the construction permits
and the building permit) necessary to construct the Initial Improvements in accordance with
applicable Laws, and any other alterations or improvements permitted by this Lease and necessary
to use the Land and the Initial Improvements. If requested by the Tenant, the Landlord shall
cooperate with the Tenant in all reasonable respects at no cost to the Landlord necessary to
authorize the Tenant to apply for such permits, inspections and local approvals, and the Landlord
shall not be required to incur any costs or any other liability in connection therewith.

          19.3. Contracts for Construction of Initial Improvements. As used in this Article,
the term “contractor” shall mean any person or entity who provides labor and/or materials for the
construction, repair, restoration or rehabilitation of any portion of the Land or Initial
Improvements, whether or not paid by the Tenant, but excluding third-party materials suppliers.

          The Tenant shall select one or more qualified contractors to construct the Initial
Improvements, which contractor shall be subject to the approval of the Landlord, such approval not
to be unreasonably withheld, delayed or conditioned, at least ten (10) business days prior to the
commencement of any construction in the Land. The Landlord approves Turner Construction Company.
The Tenant shall provide the Landlord with such documentation as is reasonably satisfactory
confirming that the Tenant has the funds available to construct any such Initial Improvements and a
copy of the construction contract for the Initial Improvements reflecting the relevant terms
thereof, including the costs to construct the Initial Improvements.

          19.4. General Provisions Governing Construction of Initial Improvements.

          (a) No contractor shall commence construction of any Initial Improvement until the
building permit and all other permits, certificates, and approvals required by Laws for
the commencement of such construction have been issued and remain in effect.

          (b) Once commenced, the construction of each of the Initial Improvements shall be
prosecuted continuously and with diligence, subject to the provisions of Section 19.8
with

26

 

respect to Force Majeure to the extent that the Tenant is prevented by
circumstances beyond its control from exercising its rights of self-help with respect
thereto.

          (c) When any construction of Initial Improvements is in progress, the Tenant shall
require its contractors to maintain (i) worker’s compensation insurance in the amounts
required by Laws (or reasonably comparable insurance if such insurance is no longer
available), (ii) builder’s risk (or such reasonably comparable insurance) insurance on
an “all risk” basis (including collapse) insuring against casualty to such construction
for full replacement value of the work performed and the equipment, supplies and
materials furnished and stored, unless such insurance coverage is provided under
policies carried by the Tenant, (iii) automobile liability in the minimum amounts
required by Laws, and (iv) public liability insurance within limits in an amount
reasonably satisfactory to the Landlord as indicated by the Landlord from time to time
in writing, but in no event less than $2,000,000, and including personal property, fire
and extended risk. All such insurance in (iii) and (iv) shall name the Landlord as an
Additional Insured thereunder.

          (d) During any construction of Initial Improvements, the Tenant shall comply at all
times with the provisions of Schedule 1.2 hereof.

          19.5. Time for Commencement and Completion of Initial Improvements; Conditions Precedent
to Commencement of Construction. Notwithstanding any provision of this Lease, including any
applicable cure period for a default or Force Majeure, construction of the Initial Improvements
shall be completed in accordance with applicable Laws, including the State Building Code and a
Certificate of Occupancy issued by the appropriate Governmental Authority upon final completion
thereof. The Tenant shall commence construction of the Initial Improvements within sixty (60)
days of the Commencement Date and shall complete construction of the Initial Improvements with
all reasonable diligence by within twenty-four (24) months of the date hereof. Upon the request
of the Landlord, the Tenant shall keep the Landlord apprised of the progress of the Initial
Improvements from time to time. Notwithstanding the foregoing, the Tenant shall not commence
construction of the Initial Improvements until the following conditions have been met, to the
satisfaction of the Landlord:

          (a) No Event of Default by the Tenant then exists hereunder;

          (b) The Tenant shall have complied in all material respects with all applicable
Laws, and in conformity with all of the schematic plans and approvals of the DEC,
including without limitation the Unified Permit, and the design approval all as more
fully detailed on Schedule 19 and shall have obtained all other permits and
approvals necessary for the commencement of construction and all appeal periods with
respect thereto shall have expired without appeal (collectively, the “Phase I
Permits”);

          (c) The Tenant shall have delivered to the Landlord, as assurance that the
construction of the Initial Improvements will be fully completed and paid for in
accordance with the Phase I Permits the following: (i) copies of a fully-executed
guaranteed maximum price contract for the construction of the Initial Improvements; (ii)
a sources and uses schedule (or such other evidence as may be satisfactory to the
Landlord in its sole and absolute discretion) demonstrating the availability of
sufficient funds to construct the Initial Improvements; and (iii) payment and
performance bonds of the general contractor (or such other evidence as may be acceptable
to the Landlord in its sole and absolute discretion

27

 

assuring the full payment for and completion of the construction of the Initial
Improvements; and

          (d) All other documents, agreements, affidavits and certifications required to be
executed and delivered by the Landlord, the tenant, any governmental agency or any third
party, in connection with this Lease, the Project Grant Agreement, the TIF Agreement and
the transaction contemplated thereby shall have been fully executed in a form
satisfactory to the Landlord and delivered.

     19.6. Force Majeure. “Force Majeure” as used herein shall have the meaning given to
such term in Section 22.15 hereof.

     19.7. Substantial Completion. “Substantial Completion” shall be deemed to have
occurred when construction of the building and site improvements as provided for under the
Unified Permit for the first phase of the Project or other applicable approvals has been
completed such that all buildings and related infrastructure and site work have been completed
(except to the extent of landscaping and similar items that are subject to seasonal conditions
and excluding all interior fixtures and equipment), and all completion certificates or similar
documentation required under any approval have been issued by the appropriate Governmental
Authority.

19.8. Signage. The Tenant shall seek and receive the prior written approval of the
Landlord and the DEC prior to erecting any signs of any size on the exterior of any Improvements
on the Land. Upon the Expiration Date or earlier termination of the Lease, the Tenant shall
remove, at its sole expense, any signs erected by the Tenant. The Tenant shall, in addition, be
required to comply with all other applicable Laws relating to the erection and approval of signs.

ARTICLE 20

Alterations and Optional Improvements; No Landlord Obligations to Make Initial Improvements or Optional Improvements

     20.1. Conditions for Making Tenant Alterations and Optional Improvements. The
Tenant shall have the right to make alterations, additions and changes to the Land, provided that
same are consistent with the Tenant’s ability to operate the Land for the Permitted Uses
(collectively “Optional Improvements”), on the following terms and conditions:

          (a) Except for Optional Improvements which (i) cost less than $100,000 (subject to
adjustment as provided in Section 11.1 hereof), or (ii) do not involve significant
structural, mechanical or electrical alterations or alterations that would be subject to
Design Review as set forth in Schedule 19, whether or not such threshold cost is
exceeded, such as the re-arrangement of internal walls of the Initial Improvements, the
Tenant shall not undertake construction of any Optional Improvement, including the
demolition, erection, addition or material alteration of any building or structure,
roadway, walkway, utility, sewer or drain main, exterior sign, parking area, or
landscaped area, without furnishing to the Landlord any construction plans prepared by
or on behalf of the Tenant in connection with such Optional Improvements, together with
a project certificate reasonably acceptable to the Landlord from an architect or
engineer overseeing the construction of such improvements (the “Project
Certificate”) that such Optional Improvements are in full compliance with Laws,
including the then applicable zoning laws of the DEC.

28

 

          (b) The provisions of Sections 19.1, 19.2, 19.3, 19.4 19.5 (except only for the
specific time limits provided therein with respect to commencement and completion of
construction of the Optional Improvements), 19.6 and 19.8 of this Lease shall apply with
full force and effect to the design and construction of any Optional Improvement
undertaken pursuant to this Article 20.

          (c) The Landlord shall have no obligations, responsibilities, liabilities or duties
whatsoever with respect to the design, construction, maintenance, repair, management,
insurance, safety, alteration or care or compliance with Laws of any of the Initial
Improvements or Optional Improvements or the Land generally, including without
limitation the building and other improvements located on the Land as of the date
hereof, the responsibility for which the Tenant hereby expressly assumes.

          (d) To the extent that the Tenant decides to design and construct Optional
Improvements on Lot 2 consisting of a so-called “Tank Farm” and related infrastructure
(collectively, the “Tank Farm Improvements”), in addition to all of the
permitting requirements imposed under Articles 19 and 20 and otherwise hereunder, the
Tenant acknowledges and agrees that Tenant shall relocate and reconstruct the access
road and trail system lying south of the Land to a location approved in advance by the
Landlord, and shall comply with all requirements of the applicable unified permit,
including without limitation design review and screening requirements.

          (e) The Landlord acknowledges it has approved the so-called second phase of the
Project as identified in the Unified Permit.

ARTICLE 21

Ownership of Improvements

          At all times during the Term, (i) the Landlord shall continue to have title to the Land and
(ii) the Tenant shall have title to all improvements constructed by the Tenant upon the Land,
subject to the provisions of this Lease upon termination thereof. Upon the Expiration Date or
earlier termination of this Lease, the Tenant shall execute and deliver to the Landlord, unless the
Landlord has requested and the Tenant has completed demolition of the Improvements, or Tenant is
otherwise required to demolish the Improvements in accordance with Article 16 hereof, a bill of
sale for all the Improvements and fixtures then existing on the Land and owned by the Tenant, in
form for filing with the Registry. Upon the Expiration Date or a termination of this Lease prior
to the Expiration Date, the Landlord shall have the right to file a certificate with the Registry
to the effect that this Lease has expired or terminated in accordance with its terms and such
Certificate shall forever estop the Tenant under this Lease or at law or in equity from asserting
any rights of the Tenant hereunder and upon the filing of such Certificate, full title to the
Improvements then existing on the Land shall automatically, without more, vest in the Landlord.

ARTICLE 22

Miscellaneous Provisions

          22.1. Nondiscrimination.

29

 

          (a) Tenant shall not discriminate against any qualified employee, applicant for employment,
subcontractor or any person or firm seeking to provide goods or services to the Tenant, nor shall
Tenant deny any person access to the Premises or to any activities or programs carried out pursuant
to this Lease because of the race, color, national origin, ancestry, age, sex, religion, physical
or mental handicap, or sexual orientation. The Tenant shall comply with all applicable federal and
state statutes, rules and regulations prohibiting discrimination in employment.

          (b) Tenant shall give consideration to the extent practicable to encouraging recruitment of
minorities, women, disabled persons and Vietnam-era veterans for the Project.

          (c) Tenant shall give consideration to the extent practicable to contacting, encouraging and
utilizing minority- and women-owned business enterprises in the procurement of materials and
equipment for the Project.

          22.2. Intentionally Deleted.

          22.3. The Landlord’s Liability; The Tenant’s Liability. No official, employee or
consultant of the Landlord shall be personally liable to the Tenant or to any successor in
interest or person claiming through or under the Tenant in the event of any default or breach of
this Lease, or for any amount which may become due or on any claim, cause or obligations
whatsoever under the terms of this Lease. All claims against the Landlord shall be governed by
the provisions of this Lease. No officer, director, or employee of the Tenant shall be
personally liable to the Landlord or to any successor Landlord in the event of any default or
breach of this Lease, or for any amount which may become due or on any claim, cause or
obligations whatsoever under the terms of this Lease.

          22.4. Status Report. The Landlord and the Tenant agree at any time and from time to
time, upon not less than fifteen (15) business days prior written request by the other, to
execute, acknowledge and deliver to the other a statement in writing certifying that this Lease
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), that either under the Lease
there is no default and no event has occurred which, with the passage of time or the giving of
notice or both, would constitute a default, or that a default exists under this Lease and
specifying the nature thereof, the dates to which the Base Rent and other charges have been paid
in advance, and such additional items as a prospective subtenant or leasehold mortgagee or any
prospective assignee of the Tenant or of any subtenant, subleasehold mortgagee or leasehold
mortgagee may reasonably require. It is intended that any such statement delivered pursuant to
this Section 22.4 may be relied upon by any prospective subtenant or leasehold mortgagee or any
prospective assignee of the Tenant or any subtenant or leasehold mortgagee.

          22.5. Provisions Binding. The term “Landlord” wherever used in this Lease shall be
deemed to mean the body politic, or the corporation, persons or other legal entity holding the
rights of the Landlord under this Lease at the time in question, and it is understood and agreed
that the covenants and agreements contained herein shall be binding upon the Landlord and its
successors only with respect to breaches occurring during the Landlord’s and the Landlord’s
successors’ respective ownership of the entire interest of the Landlord hereunder. The term
“Tenant” wherever used in this Lease shall be deemed to mean the limited liability company,
corporation, persons or other legal entity holding the rights of the Tenant under this Lease at
the time in question.

30

 

          The Tenant specifically agrees that any recovery to it under this Lease shall be limited to a
maximum amount equal to the value of the Landlord’s interest in the Land. In any event it is
specifically agreed that neither the Landlord nor its constituent agencies or other divisions shall
ever be liable to the Tenant for any such judgment in excess of such maximum amount, and in no
event shall the Landlord or its constituent agencies or other divisions ever be liable to the
Tenant for indirect or consequential damages.

          Except as set forth above, all of the covenants, agreements, stipulations, provisions,
conditions, options and obligations herein expressed and set forth shall be considered as running
with the Land and shall (unless herein otherwise specifically provided) extend to, bind and inure
to the benefit of, as the case may require, the successors and assigns of the Landlord and the
Tenant, respectively, or their successors in interest, as fully as if such words were written
whenever reference to the Landlord and the Tenant occur in this Lease. The reference contained to
successors and assigns of Tenant is not intended to include subtenants or to constitute a consent
to an assignment by Tenant not otherwise permitted hereunder. In no event shall the Landlord or
the Tenant be liable to the other for indirect or consequential damages under this Lease.

          22.6. Invalidity of Particular Provisions. If any term or provision of this Lease
or the application thereof to any person or circumstance shall be invalid or unenforceable, the
remainder of this Lease, or the application of such term or provision to persons or circumstances
other than those as to which it is invalid or unenforceable, shall not be affected thereby, and
each term and provision of this Lease shall be valid and shall be enforceable to the fullest
extent permitted by law.

          22.7. Filing of a Memorandum of Lease . Both the Landlord and the Tenant consent to
the filing of a Memorandum of Lease with respect to this Lease with the Registry of Deeds,
substantially in the form of Exhibit F (the “Memorandum of Lease”).

          22.8. Waiver. No failure by Landlord or Tenant to insist upon the strict
performance of any provisions, condition or agreement contained in this Lease, to be performed by
the other, shall ever be deemed to be a waiver of such provisions as to any subsequent event
constituting nonperformance or observance by such party. All waivers shall be in writing,
contain the word “waiver”, and specifically identify the obligation or other provision of this
Lease being waived in order to be effective.

          22.9. Landlord’s Right of Self-Help. As an additional alternative remedy to the
other remedies provided for in this Lease, the Landlord shall have the right (but not the
obligation) to cure any Event of Default for and on behalf of the Tenant (a) relating to the
Tenant’s obligations regarding insurance, maintenance, repair and use of the Land, or (b)
relating to the obligations of the Tenant to comply with Laws, including, without limitation,
such Laws as are applicable to Hazardous Materials, or (c) relating to the obligations of the
Tenant to discharge liens (or bond off such liens or otherwise remove them of record), if such
default, if not promptly cured, results, or can reasonably be anticipated to result, in a
dangerous, unhealthy or unsafe condition at the Land, or in a forfeiture, condemnation or loss of
the interest of the Landlord in the Land, provided however that the Landlord’s right of self-help
shall not be exercised by the Landlord prior to providing the Tenant with an additional notice of
the Landlord’s intention to exercise its right of self-help and, so long as the Landlord has
determined that there is no imminent threat to public health or safety, providing the Tenant with
an additional cure period, not to exceed seven (7) days. Expenses of the Landlord incurred in
exercising its rights under this Section 22.9, shall be Additional Rent hereunder. The Landlord
shall not incur any liability as a result of any exercise of the rights under this Section 22.9,
and the Tenant shall indemnify and hold the Landlord

31

 

harmless from all costs, claims, losses and liabilities in any way relating to the same,
including “Legal Costs” as hereinafter defined in Section 22.17. Any amount payable by the
Tenant to the Landlord pursuant to the provisions of this Section 22.9 shall be paid within
thirty (30) days of receipt of a bill for such amount from Landlord.

          22.10. Interest. All payments becoming due under this Lease and not paid when due
shall bear interest from the applicable due date until received by Landlord at the lesser of:
(i) four percent (4%) per annum above the base rate announced from time to time by Bank of
America (or in the event that such bank ceases to exist to issue such a rate, a comparable rate
of a comparable financial institution); or (ii) the maximum annual amount permitted by applicable
Law.

          22.11. Amendments. All negotiations, considerations, representations and
understandings among the Landlord and the Tenant are incorporated herein and may be modified or
altered only by agreement in writing between the Landlord and the Tenant.

          22.12. Governing Law. This Lease shall be governed exclusively by the provisions
hereof and by the substantive laws of The Commonwealth of Massachusetts, without reference to its
conflict of laws provisions.

          22.13. Notices. Any notice or other communication required or permitted hereunder,
shall be given in writing and delivered by hand, by overnight courier (including Federal Express
and similar recognized overnight delivery services) or by express mail or certified mail-return
receipt requested, and shall be deemed given or made upon the earlier of (i) actual receipt or
actual refusal of the addressee to accept delivery of such notice or communication (ii) the date
of deposit with any such overnight courier, all charges prepaid, or (iii) the day same is
deposited in the mails, all charges prepaid, addressed as set forth below, or at any other
address that such party may hereafter specify from time to time in writing.

	 	 	 
	If to the Landlord:

	 	Massachusetts Development Finance Agency
	 

	 	160 Federal Street 
	 

	 	Boston, MA 02110
	 

	 	Attn.: General Counsel
	 
	 	 
	With a copy to:

	 	Diane M. McDermott, Esq.
	 

	 	McCarter & English, LLP
	 

	 	265 Franklin Street 
	 

	 	Boston, MA 02110
	 
	 	 
	If to the Tenant:

	 	Evergreen Solar, Inc.
	 

	 	138 Bartlett Street 
	 

	 	Marlborough, MA 01752
	 

	 	Attn: Richard Chleboski, Vice President
	 
	 	 
	With a copy to:

	 	Goodwin Procter, LLP
	 

	 	53 State Street 
	 

	 	Exchange Place

32

 

	 	 	 
	 

	 	Boston, MA 02109
	 

	 	Attn: R.J. Lyman, Esquire
	 

	 	          Eric Labbe, Esquire

          Wherever in this Lease notice or requests to Landlord must be given in accordance with Section
22.13 and a response is required with a specified period of the envelopes containing the notice or
request shall bear on the outside thereof, and the first page of such notice at the top of such
page, the following legend, printed in bold-face type in a font of at least 14 points in size:

NOTICE

THIS NOTICE REQUIRES REPLY.

WITHIN [ ] DAYS with the blank in such legend filled in with the number of days for notice or
request referred to in the applicable Section of this Lease, as appropriate.

          22.14. Intentionally Deleted.

          22.15. Force Majeure. In any case where the Tenant is required to do any act other
than the payment of money, delays caused by or resulting from Acts of God, war, civil commotion,
fire, flood or other casualty, strikes, unavailability of materials or equipment, unusually
severe weather or other causes beyond the reasonable control of the Tenant shall not be counted
in determining the time when the performance of such act must be completed.

          22.16. Survival of Certain Provisions. Notwithstanding any provision herein to the
contrary, the provisions of Section 5.4, Section 9.4(d); Article 3 and Article 8 herein shall
survive the expiration or earlier termination of this Lease.

          22.17. “Legal Costs” Defined. In the event that the Landlord chooses to be
represented by counsel in its sole discretion, the Tenant’s indemnification and reimbursement
responsibilities under any provision of this Lease, whether incurred in connection with a
litigation matter or any other legal matter, shall include all court and litigation costs and
alternative dispute resolution costs borne by the Landlord and reasonable legal fees, court and
litigation costs and alternative dispute resolution costs and expenses charged by private counsel
employed by the Landlord, all of which costs and expenses shall be defined herein collectively as
“Legal Costs”.

ARTICLE 23

Tenant’s Option to Purchase

          23.1. Grant of Option; Option Period.

          (a) Landlord hereby grants to Tenant the option to purchase the Land upon the terms and
conditions set forth herein (the “Option”):

          (b) The Term of this Option is for a period commencing upon execution hereof and terminating
upon the expiration of the Initial Term of the Lease (the “Option Period”), as same may be
sooner terminated in accordance with the express provisions of this Article 23 or by agreement of
the parties. The last day of the Option Period is hereby defined to be the “Option Expiration
Date”. If Tenant does not exercise the Option during the Option Period, this Option Agreement
shall terminate upon the

33

 

expiration of the Initial Term. Provided that the Tenant has timely exercised the Option
during the Option Period, the Tenant shall have the right to remain in possession of the Land upon
the expiration of the Initial Term subject to the terms and provisions of this Lease as then in
effect and subject to compliance with the provisions of the Purchase and Sale Agreement attached
hereto as Exhibit G (the “Purchase Agreement”).

          23.2. Purchase Notice and Deposit. Tenant may, subject to the terms and conditions
hereof, exercise the Option in respect of the Land by delivering notice (the “Purchase
Notice”), in writing to Landlord at the address set forth above, or at such other address as
Landlord has provided to Tenant by written notice, at anytime during the Option Period. The
Purchase Notice shall set forth the closing date, such date to be not later than ninety (90) days
nor earlier than sixty (60) days after the date of such Purchase Notice, subject to extensions
and/or earlier dates of closing as provided in the Purchase Agreement. Within thirty (30) days
after delivery of the Purchase Notice, Landlord and Tenant shall work with each other in good
faith to finalize the terms of and execute the Purchase Agreement, substantially in the form of
Exhibit G hereto, modified to complete the relevant portions of such Purchase Agreement to
reflect the specific terms of the Option exercise, and shall simultaneously with the execution of
said Purchase Agreement deposit the amount of five percent (5%) of the then established Purchase
Price (hereinafter defined) for the Land to be purchased, said deposit to be made in cash, by
wire transfer or certified or cashier’s check (the “Purchase Deposit”) in escrow with the
Boston, Massachusetts office of Tenant’s nationally recognized title insurance company (the
“Escrow Agent”), all subject to the provisions of this Article 23 and in accordance with
the terms of the Purchase Agreement (and all references in this Option Agreement to the Purchase
Deposit shall include any interest earned thereon) and an escrow agreement reasonably acceptable
to Landlord and Tenant.

          23.3. Purchase Price.

          The purchase price (the “Purchase Price”) for the Land if the Option is exercised
shall be determined as follows:

          (a) The Purchase Price for the Tenant’s purchase of the Land in effect from the Commencement
Date of this Lease through and including the fifth (5th) anniversary of the Commencement
Date shall be $2,760,000.

          (b) From and after the fifth (5th) anniversary of the Commencement Date, the
Purchase Price shall be the Purchase Price determined in accordance with the procedures noted in
Schedule 23.3 hereof, PROVIDED, HOWEVER, the Purchase Price shall never be lower than the sum set
forth in Section 23.3(a).

          23.4. Negative Covenant in Deed to the Land. In the event that the Tenant exercises
the Option, then the Deed to the Land shall contain a negative covenant to the effect that if the
Tenant sells the Land, the Tenant shall be required to repay to Landlord the proceeds then due
under the grant issued by it pursuant to the Project Grant Agreement. The Deed shall also
include appurtenant easement rights necessary for the Tenant to comply with its ongoing
obligations under Article 20 regarding the Tank Farm Improvements to the extent that Tenant
constructed or intends to construct the Tank Farm Improvements.

[REMAINDER OF PAGE LEFT BLANK INTENTIONALLY. — SIGNATURES APPEAR ON FOLLOWING PAGE.]

34

 

     WITNESS the execution hereof, under seal, in any number of counterpart copies, each of which
counterpart copies shall be deemed an original for all purposes, as of the day and year first above
written.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	MASSACHUSETTS DEVELOPMENT FINANCE AGENCY	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Witness:

	 	/s/ Richard W. Holtz
 

	 	 
	 	By:
	 	/s/ Robert L. Culver
 

Robert L. Culver, President and C.E.O.
Executive Officer
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	EVERGREEN SOLAR, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Witness:

	 	/s/ Satvinder K. Dhami
 

	 	 
	 	By:
	 	/s/ Richard Chleboski
 

Richard Chleboski, Vice President
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	APPROVED AS TO FORM:	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	MASSACHUSETTS DEVELOPMENT FINANCE 

AGENCY	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Richard W. Holtz
 

	 	 	 	 	 	 	 	 
	 	 	Richard W. Holtz, General Counsel	 	 	 	 	 	 

35

 

GLOSSARY OF DEFINED TERMS

“Additional Rent” is defined in Section 3.5

“Advance Notice of Assignment” is defined in Section 10.2

“Appurtenant Easements” is defined in Section 1.1

“Army” is defined in Section 8.5

“Army Deed” is defined in Section 8.5

“Assignment and Assumption Agreement” is defined in Section 10.2

“Award” is defined in subsection 12.1.2

“Base Rent” is defined in Section 3.1

“Commencement Date” is defined in Section 1.3

“Condemnation” is defined in Section 12.1

“Condemnor” is defined in Section 12.1

“Contractor” is defined in Section 19.3

“DEC” is defined in Section 1.1

“Environmental Laws” is defined in Section 8.1

“EPA” is defined in Section 8.5

“Escrow Agent” is defined in Section 23.2

“Event of Default” is defined in Section 17.1

“Exclusive Leasehold Mortgagee Rights” is defined in Section 9.4

“Expiration Date” is defined in Section 1.3

“FFA” is defined in Section 8.5

“First Option Term” is defined in Section 1.5

“Forbearance Period” is defined in Section 9.4

“Force Majeure” is defined in Section 22.15

“Governmental Authority” is defined in Section 1.1

“Grantee” is defined in Section 8.5

“Hazardous Materials” is defined in Section 8.1

 

 

“Impositions” or “Imposition” is defined in Section 4.1

“Improvements” is defined in Section 1.1

“Initial Improvements” is defined in Section 19.1

“Initial Term” is defined in Section 1.3

“Insurance Proceeds” is defined in Section 5.2

“Land” is defined in Section 1.1

“Landlord” is defined in the first paragraph of the Lease

“Laws” is defined in Section 2.2(a)

“Leasehold Mortgage” is defined in Section 9.1

“Leasehold Mortgagee” is defined in Section 9.1

“Legal Costs” is defined in Section 22.17

“Lending Institution” is defined in Section 9.5

“Level One Plan” is defined in Exhibit A to this Lease

“Lot 2” is defined in Section 1.1

“Massachusetts Contingency Plan” or “MCP” are defined in Section 8.1

“Memorandum of Lease” is defined in Section 22.7

“Merger or Acquisition Event” is defined in Section 10.2.1(b)

“Net Insurance Proceeds” is defined in Section 11.3

“NPL” is defined in Section 8.5A.

“Option” is defined in Section 23.1(a)

“Option Expiration Date” is defined in Section 23.1(b)

“Option Period” is defined in Section 23.1(b)

“Optional Improvements” is defined in Section 20.1

“Permitted Encumbrances” is defined in Section 1.1

“Permitted Uses” is defined in Section 2.1

- 2 -

 

“Premises” is defined in Section 1.1

“Project” is defined in the Recitals of this Lease, beginning on page 1

“Project Certificate” is defined in Section 20.2

“Project Grant Agreement” is defined in Section 10.2.1(b)

“Purchase Agreement” is defined in Section 23.1(b)

“Purchase Deposit” is defined in Section 23.2

“Purchase Notice” is defined in Section 23.2

“Purchase Price” is defined in Section 23.3

“Registry” is defined in Section 8.5

“Remedial Work” is defined in Section 8.1

“Rent” is defined in Section 3.3

“Reserved Easements” is defined in Section 1.2

“ROD” is defined in Section 8.5D

“Second Option Term” is defined in Section 1.5

“Substantial Completion” is defined in Section 19.7

“Tank Farm Improvements” is defined in Section 20.1(d)

“Tenant” is defined in the first paragraph of the Lease

“Tenant’s Agents” is defined in Section 8.2(a)

“Tenant’s Indemnity” is defined in Section 8.3

“Tenant’s Termination Option” is defined in Section 1.2

“Term” or “Term of this Lease” is defined in Section 1.3

“TIF Agreement” is defined in Section 4.1

“Unified Permit” is defined in Section 2.1

“UXO Documents” is defined in Schedule 1.2

“UXO Protocol” is defined in Schedule 1.2

“Work” is defined in Section 11.2 and 12.2

- 3 -

 

SCHEDULE 1.1

PERMITTED ENCUMBRANCES

     1. Terms and provisions of the Quitclaim Deed from the United States of America acting by and
through the Secretary of the Army to the Government Land Bank, predecessor-in-interest to
MassDevelopment dated May 9, 1996 and recorded in the Worcester County Registry of Deeds (the
“Registry”) in Book 17907, Page 1.

     2. Matters shown on plan entitled “Plan of Land Conveyed to the Government Land Bank by the
Secretary of the Army, Ayer, Harvard & Shirley, MA.” dated May 9, 1996 and recorded with the
Registry in Plan Book 703, Page 112.

     3. Terms and provisions of the Notice of Lease between the United States of America acting by
and through the Department of the Army to the Government Land Bank dated May 9, 1996 and recorded
with the Registry in Book 17922, Page 223.

     4. Terms and provision of the Quitclaim Deed of Parcel A.6 from the United States of America
acting by and through the Department of the Army to Massachusetts Development Finance Agency dated
June 18, 2002 and recorded with the Registry in Book 26844 Page 212.

     5. Federal Facility Agreement under CERCLA Section 120, along with Modification No. 1 dated
March 27, 1996.

     6. Administrative Consent Order and Covenant Not to Sue, dated May 20, 1996.

     7. General Public Way Declaration Plan recorded with the Registry in Plan Book 822, Plan 22.

     8. Subdivision Regulations dated February 22, 1996 and recorded with the Registry in Book
17968, Page 179.

     9. Landlord’s Reserved Rights. The Tenant acknowledges that the Landlord and its successors
will be developing the Devens Regional Enterprise Zone on an ongoing basis and that such
development may involve the relocation from time to time of utility systems, roadways and other
infrastructure (“Infrastructure”). The Tenant accepts the Land under this Lease subject to the
provision that if any relocation or future development activities at Devens should require the
location of additional Infrastructure provided such placement does not unreasonably interfere with
the Tenant’s use of the Land.

     10. The provisions of the Barnum Road Master Plan dated October 25, 2001.

 

 

SCHEDULE 1.2

Notice of UXO, Asbestos, Underground Storage Tanks, Radon, Lead Based Paint, and

Wetlands Provisions

          Unexploded Ordinance. Tenant acknowledges that Devens is the site of a former active
military installation, and that there is a possibility that unexploded ordnance (UXO) may be
encountered during Tenant’s use and occupancy of the Land. Tenant also acknowledges the notices
and provisions relating to UXO contained in the Army Deed pursuant to which the United States Army
conveyed Devens to the Landlord, a copy of which has been provided to Tenant.

          Tenant’s due diligence with respect to UXO may include a review of all available records
supplied by the Army to the Landlord or its agents relating to the presence or removal of UXO on
the Land (the “UXO Documents”), which UXO Documents shall be made available to Tenant at
reasonable times upon reasonable notice. Landlord makes no representation or warranty of any kind,
nature or description whatsoever with respect to (a) the completeness or accuracy of the
information contained in the UXO Documents, or (b) the presence or absence of UXO at the Land.
Tenant acknowledges that Landlord has provided the UXO Documents as a convenience to Tenant, and
that Tenant is not entitled to rely upon the UXO Documents. It is expressly agreed that nothing
herein shall be deemed to preclude Tenant from making its own assessment of the Land for the
presence of UXO as provided herein, provided, however, that any such assessment must be conducted
in accordance with the terms of the Right of Entry Agreement and in accordance with the ACO as well
as any and all applicable laws, rules, regulations, and requirements.

          Seller and Buyer hereby acknowledge that they have agreed on a UXO protocol governing the
treatment and disposition of UXO on the Land (the “UXO Protocol”), a copy of which protocol
is attached hereto as Exhibit A. Each of the Parties agrees to comply with its respective
obligations under the UXO Protocol and to reasonably cooperate with the other in its
implementation.

          Notice of Asbestos, Underground Storage Tanks, Radon, Lead Based Paint, and Wetlands.

     (i) Tenant is hereby informed and does acknowledge that friable and
non-friable asbestos or asbestos containing materials (“ACM”) may be found on the
Land;

     (ii) Tenant is hereby informed and does acknowledge that Underground Storage
Tanks (“USTs”) have been located on the Land, but that known USTs have been removed;

     (iii) Tenant is hereby informed and does acknowledge that the Land may be
affected by radon. Available and relevant radon assessment data pertaining to the
Land is available from Tenant upon request;

     (iv) Tenant is hereby informed and does acknowledge that all buildings that
are or had been located on the Land, all of which are believed to have been
constructed or rehabilitated prior to 1978, are presumed to contain or have
contained lead based paint;

     (v) The Land may contain wetlands which are protected under federal, state and
local laws and regulations, including but not limited to, Article VII.C of the
Devens By-laws, dated November 18, 1994. Upon execution of the Lease, the Tenant
and its successors and assigns shall comply with such laws and shall comply with
Article XII.C of the Devens By-Laws in its forms as of May 9, 1996, and as amended
thereafter.

 

 

SCHEDULE 9.4(d)

DETERMINATION OF FAIR MARKET RENT

     Within ten (10) days after the Leasehold Mortgagee having the Exclusive Leasehold Mortgagee
Rights fails to perform on the closing date established under the Purchase Agreement (as defined in
Section 23.1), Landlord and Leasehold Mortgagee shall each choose an appraiser. Each party shall
notify the other of the name and date of engagement of its appraiser. If either party fails to
choose an appraiser within such time, the monthly Fair Market Rent will be determined by the
appraiser chosen by the other party. All appraisers shall be impartial individuals having at least
five (5) years’ experience in appraising commercial real estate in the vicinity of the Land. Each
appraiser shall prepare an appraisal report and submit it to the party which hired it within thirty
(30) days of its engagement. Each party shall promptly deliver a copy of its appraiser’s report to
the other party.

     If the two appraisals of Fair Market Rent are within fifteen (15%) of each other, then the
average of the two appraisals shall be the Fair Market Rent for the Land. If the two appraisals
are not within fifteen (15%) percent of each other, then within fourteen (14) days after receipt by
Landlord and Leasehold Mortgagee of both appraisal reports, the appraisers selected by Landlord and
Leasehold Mortgagee shall agree on a third appraiser. If the appraisers are unable to agree on the
third appraiser within such time, then the third appraiser shall be chosen by the Executive
Director of the Greater Boston Real Estate Board, whose qualifications shall be consistent with
those set forth above. The third appraiser shall perform an independent third appraisal and shall
provide a copy of the appraisal to Landlord and Leasehold Mortgagee and their respective
appraisers. The average of the two appraisals which are closest in value shall be the Fair Market
Rent for the Land.

     Each party shall pay the costs of its appraiser and one-half of the costs of the third
appraiser.

- 2 -

 

SCHEDULE 23.2

DETERMINATION OF FAIR MARKET VALUE

     Within ten (10) days after Landlord receives Tenant’s notice of the exercise of its election
to exercise its Option, Landlord and Tenant shall each choose an appraiser. Each party shall
notify the other of the name and date of engagement of its appraiser. If either party fails to
choose an appraiser within such time, the Fair Market Value will be determined by the appraiser
chosen by the other party. All appraisers shall be impartial individuals having at least five (5)
years’ experience in appraising commercial real estate in the vicinity of the Land. Each appraiser
shall prepare an appraisal report and submit it to the party which hired it within forty-five (45)
days of its engagement. Each party shall promptly deliver a copy of its appraiser’s report to the
other party.

     If the two appraisals of Fair Market Value are within fifteen (15%) of each other, then the
average of the two appraisals shall be the Fair Market Value for the Land. If the two appraisals
are not within fifteen (15%) percent of each other, then within fourteen (14) days after receipt by
Landlord and Tenant of both appraisal reports, the appraisers selected by Landlord and Tenant shall
agree on a third appraiser. If the appraisers are unable to agree on the third appraiser within
such time, then the third appraiser shall be chosen by the Executive Director of the Greater Boston
Real Estate Board, whose qualifications shall be consistent with those set forth above. The third
appraiser shall perform an independent third appraisal and shall provide a copy of the appraisal to
Landlord and Tenant and their respective appraisers. The average of the two appraisals which are
closest in value shall be the Fair Market Value for the Land.

     Each party shall pay the costs of its appraiser and one-half of the costs of the third
appraiser.

 

 

EXHIBIT A

Legal Description

     A certain parcel of land shown as Lot 2, containing approximately 23.11 acres of land, on a
plan prepared by Chas. H. Sells, Inc. dated November 9, 2007, to be recorded with the Registry of
Deeds with the Memorandum of Lease. The plan is entitled “Level I Subdivision Lot 2 Barnum Road”
(the “Level One Plan”).exv10w37

 

Exhibit 10.37

EXECUTION

MASSACHUSETTS DEVELOPMENT FINANCE AGENCY

PROJECT GRANT AGREEMENT

     This Project Grant Agreement (the “Agreement”) dated as of November 20, 2007, is
entered into between the Massachusetts Development Finance Agency (“MDFA”), a Massachusetts
body politic and corporate and a public instrumentality of The Commonwealth of Massachusetts (the
“Commonwealth”) established under Chapter 23G of the Massachusetts General Laws as amended
(the “Act”) , having its principal office and place of business at 160 Federal Street,
Boston, Massachusetts 02110, and Evergreen Solar, Inc., a Delaware corporation, with a principal
place of business at 138 Bartlett Street, Marlborough, Massachusetts 01752 (“Grantee”)
(MDFA and Grantee are together referred to as the “Parties”).

     Whereas, MDFA is offering financial assistance to Grantee in the form of the Grant (as
hereinafter defined) to help defray the costs incurred by Grantee in the design and construction of
a facility to be located on certain Land (the “Premises”) owned by MassDevelopment to be
leased to Grantee, for the design, manufacture and assembly of products for renewable energy
technologies and all related functions, including research and development and warehousing and
administration (the “Project”, which term shall exclude the cost of any equipment or
fixtures specific to the manufacturing or other activities of Grantee to be conducted by Grantee on
the Land);

     Whereas, MDFA’s provision of such grant funds for use on the Project is consistent with the
statutory goals set forth in the Act and is expected to lead to substantial economic development
activity in the Commonwealth, including without limitation the retention and creation of
employment, as more fully set forth in this Agreement;

     Whereas, MDFA’s Board of Directors approved the commitment of funds to Grantee for the Project
on August 22, 2007; and

     Now therefore, pursuant to the terms and conditions of the Agreement, MDFA and Grantee agree
as follows:

	1.	 	Term and Termination

	 	a)	 	The term of this Agreement shall commence on the date that this Agreement is
fully executed by the Parties (the “Effective Date”), and, unless terminated
earlier pursuant to the terms of Section 1(b) and Section 6 (Events of
Default), shall expire sixty (60) days after the eighth (8th)
anniversary of the Effective Date.
	 
	 	b)	 	MDFA’s obligation to disburse Grant proceeds, however, shall expire in any
event on the earlier to occur of (i) the six (6) month anniversary of the date that
Grantee has substantially completed the Initial Improvements (as such term is defined
in a certain Ground Lease dated on or about the date hereof between MDFA and the
Grantee with respect to the Premises and the Project, a copy of which is attached
hereto as Exhibit A (the “Ground Lease”)), or (ii) the last day of the
twenty-fourth (24th) month after the Effective Date.
	 
	 	c)	 	This Agreement may be terminated by either MDFA or Grantee if (i) an Event of
Default occurs (including the expiration of any applicable cure period) and remains
outstanding as of the date of termination and the party seeking to terminate this
Agreement hereunder is the Non-Defaulting Party, and (ii) the Non-Defaulting Party has
not waived such Event of Default in writing.
	 
	 	d)	 	The obligations of MDFA to fund any portion of the proceeds under this Grant
shall automatically terminate in the event that the Ground Lease is terminated for any
reason,

 

 

Project Grant Agreement: Evergreen Solar, Inc.

	 	 	 	unless termination occurred because the Grantee purchased the Premises pursuant to
its option to purchase contained in the Ground Lease.

	2.	 	The Grant; Conditions Precedent to MDFA’s Obligation to Make Grant
	 
	 	 	Subject to the provisions of this Agreement, including without limitation the provisions of
Section 5 (Payments), Section 8 (Grantee’s Commitments) and Section 9 (Repayment), MDFA
shall pay to Grantee a maximum amount of Ten Million Dollars ($10,000,000) (the
“Grant”). MDFA shall have no obligation to pay Grantee any amount in excess of the
Grant notwithstanding any construction on the Land by Grantee of more than the Project.
	 
	 	 	Notwithstanding the foregoing, MDFA shall have no obligation to disburse any of the proceeds
of the Grant until such time as it has received (a) Grant funds in the amount of $11,000,000
from the MORE Jobs Program and the Community Development Action Grant through the Executive
Office of Housing and Economic Development and (b) Grant funds in the amount of $2,000,000
from the Public Works Economic Development Program through the Executive Office of
Environmental Affairs.
	 
	3.	 	Use of Proceeds
	 
	 	 	Grantee hereby covenants and agrees that all Grant funds provided by MDFA pursuant to this
Agreement shall be used solely to defray the direct hard and soft costs incurred by Grantee
in connection with the due diligence, permitting, design and construction of the Project
(hereinafter “Project Costs”), and for no other purpose. In no event, however,
shall Project Costs include the cost of any equipment or fixtures specific to the
manufacturing or other activities of the Grantee to be conducted by Grantee on the Land.
	 
	4.	 	Reporting
	 
	 	 	Grantee shall, on a quarterly basis prior to Substantial Completion (as defined in the
Ground Lease) and thereafter on an annual basis, provide MDFA with a project status report
(the “Progress Reports”), which shall include without limitation (a) a description
of completed Project construction milestones, during the period of construction, (b) the
stage of the progress of construction of the Project, during the period of construction, and
(c) the status of Grantee’s meeting and maintaining the (i) Retained Positions and (ii) new
Jobs commitments, as defined and more fully set forth in Section 8; provided that nothing
herein shall be deemed to require Grantee to disclose information that is of a proprietary
nature. Grantee’s compliance with Grantee’s Commitments (as defined in Section 8) may be
subject to continuous assessment by MDFA. In furtherance of the foregoing, Grantee shall
provide MDFA with annual reports (the “Annual Reports”), which shall include
information setting forth Grantee’s compliance with, and/or variances from, the Grantee’s
Commitments. The first Annual Report shall be submitted to MDFA within thirty (30) days of
the first anniversary of the Effective Date and each subsequent Annual Report shall be
submitted within thirty (30) days of each subsequent anniversary of the Effective Date. In
the case of the Grantee’s Commitments set forth in Sections 8(a)-(e), the Annual Report
shall include a certification from Grantee’s CEO or CFO concerning Grantee’s compliance
with, and/or variances from, the Grantee’s Commitments. Additionally, Grantee shall provide
MDFA with such other information, reports, documents and certifications as MDFA may, from
time to time, request with respect to the Project and the subject matter of this Agreement
within twenty (20) days after such request.
	 
	5.	 	Invoices/Payment Schedule

	 	a)	 	Cost Reimbursement. Grantee shall receive advances of Grant funds on a
percentage of completion basis for Project Costs actually incurred for the design and
general construction of the Project (collectively the “Total Project Construction
Funds”) and upon

Page 2

 

Project Grant Agreement: Evergreen Solar, Inc.

	 	 	 	the completion of the Project, any Grant funds not yet advanced shall be provided to
Grantee subject to the provisions of Sections 1(b) and (c) hereof. The Parties
acknowledge that the total amount of MDFA’s funding for the Project’s general
construction is Ten Million Dollars ($10,000,000), comprised of the Grant. The
Parties acknowledge that the estimated Project Costs for the Initial Improvements
and anticipated sources of the Total Project Construction Funds for the Initial
Improvements have been provided to MDFA.
	 
	 	b)	 	Invoices. Grantee may submit invoices for payment using the template provided
by MDFA. The invoice shall set forth total Project Costs incurred and paid as of the
date of the invoice, the balance of the funds required to complete the Project, and
evidence of payment thereof. Grantee shall provide such additional supporting
documentation of Project Costs actually incurred as MDFA may request.
	 
	 	c)	 	Payment Terms. MDFA shall pay disburse Grant funds to Grantee within thirty
(30) days after receipt of a properly documented invoice, unless MDFA properly
determines that any such payment or any part thereof is otherwise not properly payable
pursuant to the terms of this Agreement.

	6.	 	Events of Default
	 
	 	 	For the purposes of this Agreement, a “Defaulting Party” shall mean any party hereto against
which the other party hereto is entitled to assert an Event of Default under this Section 6
and a “Non-Defaulting Party” shall mean with respect to the occurrence of any Event of
Default (as defined below), the party to this Agreement that is not the Defaulting Party in
connection with such Event of Default. For purposes of this Agreement “Event of Default”
shall mean any of the following:

	 	a)	 	Failure by the Defaulting Party to make, when due, any payment or repayment
required under this Agreement if such failure is not remedied within thirty (30)
calendar days after written notice of such failure is given by the other party and
provided the payment or repayment is not the subject of a continuing good faith
dispute;
	 
	 	b)	 	Material breach of any of the Defaulting Party’s obligations contained in this
Agreement, including without limitation the obligations set forth in Section 8(a) or
(e), which breaches are not excused by Force Majeure (as defined in Section 16) or
cured as provided in the relevant provisions of this Agreement;
	 
	 	c)	 	Any circumstance: (i) in which the Defaulting Party makes a general assignment
for the benefit of creditors (as a symptom of impending bankruptcy), (ii) in which the
Defaulting Party files a petition or otherwise commences, authorizes or consents to the
commencement of a proceeding or cause of action under any bankruptcy or similar law for
the protection of creditors, or where such a petition is filed against Defaulting Party
and is not stayed, withdrawn or dismissed within sixty (60) days after such filing,
(iii) in which a court of competent jurisdiction shall determine that Defaulting Party
is generally not paying its debts as such debts become due, or (iv) which results in
the Defaulting Party’s insolvency or its admission that it is unable to pay its debts
generally as they become due;
	 
	 	d)	 	Termination of the Ground Lease as a result of an uncured default by Grantee
shall be an Event of Default hereunder; and
	 
	 	e)	 	A sale or other transaction in the nature thereof of the Premises by Grantee
after Grantee’s purchase of the Premises from MDFA and as a result thereof Grantee is
no longer operating the Project on the Premises.

Page 3

 

Project Grant Agreement: Evergreen Solar, Inc.

	 	f)	 	In addition to any other remedy available to it under this Agreement or under
applicable law, upon any occurrence of an Event of Default, the Non-Defaulting Party
shall be entitled to suspend performance of its obligations under this Agreement until
the earlier of such time as (a) such Event of Default has been cured, or (b) the
Non-Defaulting Party has elected to terminate this Agreement pursuant to Section 1(c).
The Non-Defaulting Party may, in addition to such suspension and/or termination,
initiate proceedings for an assessment of damages payable to the Non-Defaulting Party
resulting from such Event of Default and/or seek any other remedies available to the
Non-Defaulting Party either at law or in equity; provided that MDFA’s remedies (in
addition to such suspension and/or termination) upon an Event of Default by Grantee
shall be limited to the right to enforce the repayment and forfeiture provisions as
specified in Section 9 below. Neither the preceding sentence nor any other provision
of this Agreement shall restrict or otherwise limit MDFA’s rights under any other
agreements entered into with Grantee, including without limitation, the Ground Lease.

	7.	 	Assignment
	 
	 	 	Grantee’s rights and restrictions on the assignment or any form of transfer of any of
Grantee’s interest in the Grant or this Agreement (including without limitation by merger,
sale of assets or corporate reorganization) shall be governed by the same terms and
conditions permitting and/or restricting assignments of Grantee’s leasehold interest as set
forth in Article 10 of the Ground Lease.
	 
	8.	 	Grantee’s Commitments
	 
	 	 	Grantee acknowledges that the Grant is conditioned on Grantee’s meeting and maintaining the
following commitments (collectively the “Grantee’s Commitments”), and Grantee
therefore agrees and covenants that it shall:

	 	a)	 	Maintain a general manufacturing, research and development business for
renewable energy technologies at the Premises for a period of five (5) years,
commencing on Substantial Completion of the Project as defined in the Ground Lease
subject to the provisions of Article 2, Section 2.2(d) of the Ground Lease.
	 
	 	b)	 	(i) create and maintain (a) 350 new Jobs (as hereinafter defined) as a result
of the Project, of which a minimum of 320 shall be located at the Premises and the
balance of the new Jobs shall be in Massachusetts, within two (2) years of the
Effective Date and for a period of six (6) years thereafter and (ii) retain 310
existing jobs in Massachusetts (the “Retained Positions”) for a seven (7) year
period from the Effective Date. For purposes of this Agreement, the term “job”
(wherever it may appear in this Agreement, either on its own, in a defined term, or in
upper or lower case) means a Massachusetts-based full-time equivalent employee on
Grantee’s payroll. Notwithstanding the foregoing or the provisions of Section 9, it is
agreed and understood that new Jobs created prior to the end of the second year
following the Effective Date, in satisfaction of the foregoing requirements, may be
created anywhere in Massachusetts.
	 
	 	 	 	Notwithstanding anything to the contrary herein, in the event that the Grantee does
not comply with the provisions of this Section 8(b), the Grantee shall not be deemed
to be in default of Grantee’s commitments hereunder but rather shall be obligated to
repay to the Grantor those sums that were not earned pursuant to the provisions of
Section 9 below.
	 
	 	c)	 	To the extent feasible, give consideration to utilizing Massachusetts-based
contractors in the construction of the Project, but Grantee shall not be required to
employ a certain quota or percentage of Massachusetts-based contractors.

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Project Grant Agreement: Evergreen Solar, Inc.

	 	d)	 	To the extent feasible, give consideration to using equipment manufactured or
assembled by Massachusetts companies, but Grantee shall not be obligated to purchase
any quota or percentage of equipment from Massachusetts companies.
	 
	 	e)	 	Not be or become a Prohibited Person. For the purposes of this Agreement a
“Prohibited Person” is any person or entity which is, or in which a direct or indirect
owner of 10% or more of the beneficial interest is, (X) in breach or violation of a
written contract with the Commonwealth or MDFA as to which more than $5,000,000 is at
issue and the entity is not contesting the breach or violation or the Commonwealth or
MDFA has obtained at least an initial finding or determination in its favor which has
not been overruled as to the principal matter at issue from a court, arbitrator or
other tribunal with jurisdiction, (Y) delinquent to the extent of $1,000,000 or more in
the payment of any state or local taxes assessed by or in the Commonwealth or (Z) a
person or entity as to which it is illegal for MDFA to do business with under state or
federal law. Notwithstanding the foregoing, however, the acquisition of 10% or more of
the stock of Grantee on a recognized stock exchange or in the open market without the
intervention, support or consent of Grantee shall not cause Grantee to be or become a
Prohibited Person.

	9.	 	Repayment Provisions

	 	a)	 	Grantee acknowledges and agrees that it shall repay the full amount or relevant
portion of the Grant (without interest), excluding any theretofore Earned Amounts (as
that term is defined in Section 9(b)(ii) below), if Grantee is the Defaulting Party
with respect to an Event of Default or if Grantee fails to comply with the Grantee’s
Commitments set forth in Section 8, such repayment to be due and payable to MDFA within
thirty (30) days of Grantee’s receipt of written notice from MDFA demanding such
repayment due to Grantee’s failure to comply with Grantee’s Commitments.
	 
	 	b)	 	(i) Grantee shall have eight (8) years following the Effective Date to create
2,300 new “Job Years” in Massachusetts, a portion of which shall be created at the
Premises as required by Section 8(b). A “Job Year” shall be defined as each Job (as
defined in Section 8(b)) that was created in Massachusetts, subject to the requirements
of Section 8(b), during the year multiplied by the number of weeks the job existed
divided by 50. Grantee shall submit to MDFA, within thirty (30) days of each annual
anniversary of the Effective Date, a Job Years Assessment Report containing information
demonstrating the number of Job Years created in Massachusetts, subject to the
requirements of Section 8(b), as of each annual anniversary of the Effective Date.

	 	 	 	(ii) For each new Job Year created (each an “Actual Job Year” and collectively the
“Actual Job Years”), Grantee shall be deemed to have earned a portion of the Grant
in an amount equal to Four Thousand Three Hundred Forty Eight Dollars ($4,348.00)
(the “Earned Amount”), and in an aggregate Actual Job Years amount not to
exceed Ten Million Dollars ($10,000,000). All Earned Amounts shall not be subject
to forfeiture.
	 
	 	 	 	(iii) In the event that the number of Actual Job Years created on any annual
anniversary of the Effective Date is less than the number of Targeted Job Years
Created, as that term is set forth and applied in Attachment A for such annual
anniversary date, Grantee shall forfeit to MDFA a portion of the Grant in an amount
equal to Four Thousand Three Hundred Forty Eight Dollars ($4,348.00) multiplied by
the difference between (A) the number of Targeted Job Years Created as specified in
Attachment A for such annual anniversary date and (B) the number of Actual Job Years
created by such annual anniversary date (the “Forfeiture Amount”). Grantee
shall pay MDFA any Forfeiture Amount within thirty days of Grantee’s receipt of
written notification from MDFA, provided that any Forfeiture Amount due hereunder on
account of the number of Actual Job Years created within the first two (2) years of
the Effective Date shall be deferred and paid upon the first day of the third
(3rd) year after the Effective Date and in

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Project Grant Agreement: Evergreen Solar, Inc.

	 	 	 	no case shall the total Forfeiture Amount exceed $10 million less any previously
Earned Amounts. In addition, Grantee shall not be obligated to pay any Forfeiture
Amount or otherwise repay any of the Grant funds after such time as the Grantee has
achieved the creation of 2,300 Job Years.
	 
	 	 	 	(iv) Notwithstanding the foregoing, in the event that a Forfeiture Amount is
determined to be payable hereunder, and in any subsequent annual period the number
of Actual Job Years created by any annual anniversary of the Effective Date exceeds
the number of Targeted Job Years Created by such annual anniversary date, MDFA shall
re-pay Grantee a portion of the Forfeiture Amount in an amount equal to Four
Thousand Three Hundred Forty Eight Dollars ($4,348.00) multiplied by the number of
Actual Job Years created by such annual anniversary date in excess of the Targeted
Job Years Created by such annual anniversary date (the “Re-Payment Amount”).
Furthermore, in the event that the Grantee achieves the creation on a cumulative
basis of 2300 Job Years on or before the last day of the 8th year
following the Effective Date, MDFA shall pay back to Grantee any and all amounts
previously paid by Grantee to MDFA as Forfeiture Amounts (the “True-Up Amount”).
Any Re-Payment Amount and/or True-Up Amount shall not exceed the aggregate of all
Forfeiture Amounts previously paid by Grantee to MDFA. MDFA shall re-pay Grantee
any Re-Payment Amount and/or True-Up Amount within thirty days of MDFA’s receipt of
written notification from Grantee.
	 
	 	c)	 	All of the provisions of the foregoing Section 9(b) notwithstanding, Grantee
shall not be required to pay any Forfeiture Amount or otherwise repay any of the Grant
funds to MDFA due to any failure to fulfill Grantee Commitments that directly result
from an event of Force Majeure as defined in Section 16.
	 
	 	d)	 	Grantee shall have the right at any time to apply to MDFA for full or partial
waiver or modification or extension of time to meet Grantee’s Commitments. Any
decision to waive, modify or extend such time frames shall be in the exercise of MDFA’s
sole discretion.
	 
	 	e)	 	In the event Grantee becomes a Prohibited Person as defined in Section 8(e),
MDFA may declare an Event of Default hereunder and cease making any further Grant
advances and Grantee shall be deemed to be in default pursuant to the Ground Lease and
MDFA may exercise any other remedies available to it under the Ground Lease.

	10.	 	Nondiscrimination
	 
	 	 	Grantee agrees to comply with all applicable Federal and State statutes, rules and
regulations promoting fair employment practices or prohibiting employment discrimination and
unfair labor practices and shall not discriminate in the hiring of any applicant for
employment nor shall any qualified employee be demoted, discharged or otherwise subject to
discrimination in the tenure, position, promotional opportunities, wages benefits or terms
and conditions of their employment because of race, color, national origin, ancestry, age,
sex, religion, disability, handicap, sexual orientation, or for exercising any rights
afforded by law.
	 
	11.	 	Undocumented Workers and Indemnification

	 	a)	 	Grantee hereby certifies that Grantee does not and shall not knowingly use
undocumented workers in connection with the Project, and Grantee agree that, pursuant
to federal requirements, Grantee shall verify the immigration status of all workers
employed by Grantee at the Premises without engaging in unlawful discrimination.
Grantee shall not knowingly alter or falsify, or accept altered or falsified, documents
from any such worker. Any breach of the foregoing terms and provisions may be regarded
by MDFA as a material breach of this Agreement, subjecting Grantee to sanctions,
including

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Project Grant Agreement: Evergreen Solar, Inc.

	 	 	 	but not limited to monetary penalties, withholding of Grant funds, suspension of the
Agreement or termination of this Agreement.
	 
	 	b)	 	To the fullest extent permitted by law, subject to the limitations set forth in
Section 11(c), Grantee shall indemnify and hold harmless the Commonwealth, MDFA, and
each of their respective agents, officers, directors and employees (together with the
Commonwealth and MDFA, the “Covered Persons”) from and against any and all
liability, loss, claims, damages, fines, penalties, costs and expenses (including
reasonable attorney’s fees), judgments and awards (collectively, “Damages”)
sustained, incurred or suffered by or imposed upon any Covered Person resulting from
any breach of this Agreement by Grantee. Without limiting the foregoing, Grantee shall
indemnify and hold harmless each Covered Person against any and all Damages that may
arise out of or are imposed because of the failure to comply with the provisions of
applicable law by Grantee or any of its agents, officers, directors, employees or
subcontractors. Such obligations shall survive any termination of this Agreement for
three (3) years.
	 
	 	c)	 	The indemnification obligation set forth in Section 11(b) shall not apply to
the extent that Damages result from the negligence or reckless or willful misconduct of
any Covered Person.
	 
	 	d)	 	In no event shall either party be liable for any indirect, incidental, special
or consequential damages whatsoever (including but not limited to lost profits or
interruption of business) under this Agreement. Notwithstanding the foregoing, the
parties acknowledge and agree that MDFA as a public entity has an overriding policy of
not providing financial or other assistance of any kind from its limited public
resources to Prohibited Persons for any period of time. The parties agree and
stipulate that any forfeiture of Grantee’s right to receive additional disbursements of
Grant funds to the extent provided for herein if Grantee should voluntarily be or
become a Prohibited Person is reasonable in light of the irreparable harm MDFA would
suffer.

	12.	 	Public Records
	 
	 	 	As a public entity, MDFA is subject to the Massachusetts Public Records Law (set forth at
Massachusetts General Laws Chapter 66) and thus documents and other materials made or
received by MDFA and/or its employees are subject to public disclosure. All information
received by MDFA from Grantee shall be deemed to be subject to public disclosure, except as
provided by applicable law.
	 
	13.	 	Document Review Rights
	 
	 	 	Upon reasonable notice to Grantee and during normal business hours at the offices of
Grantee, MDFA will have the right to review Grantee’s or its other agents’ records to the
extent Grantee has access to such agents’ records and as is reasonably necessary to confirm
that Grantee is in compliance with this Agreement, at any time from the Effective Date
through the end of the Retention Period, as defined below herein, provided that nothing
herein shall be deemed to permit MDFA to review any records that contain information of a
proprietary nature to Grantee. If such review reveals that any portion of the Grant was
utilized for purposes not permitted under this Agreement, then Grantee shall refund to MDFA
the amount determined by such review within thirty (30) days of Grantee’s receipt of such
demand. Grantee shall maintain books, records, and other compilations of data pertaining to
the Grant payments made under this Agreement to the extent and in such detail as shall
reasonably substantiate use of such payments. All such records shall be kept for a period
commencing on the Effective Date and terminating seven (7) years after payment of the final
advance of Grant proceeds under this Agreement (the “Retention Period”). If any
litigation, claim, negotiation, audit or other action involving the records is commenced
prior to the expiration of the Retention Period, all records shall be retained until
completion of the audit or other action and resolution of all issues resulting therefrom, or
until the

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Project Grant Agreement: Evergreen Solar, Inc.

	 	 	end of the Retention Period, whichever is later. MDFA or the Commonwealth or any of their
duly authorized representatives shall have the right at reasonable times and upon reasonable
notice, to examine and copy at reasonable expense, the books, records, and other
compilations of data of Grantee which pertain to the Project and/or the provisions and
requirements of this Agreement from the Effective Date through the end of the Retention
Period. Such access may include on-site audits, review and copying of records.
	 
	14.	 	Lobbying
	 
	 	 	No Grant funds may be used to pay for or otherwise support any activities intended to
influence any matter pending before the Massachusetts General Court or for activities
covered by the law and regulations governing “legislative agents” or “executive agents” set
forth in the Massachusetts Lobbying Law, M.G.L. c.3, §39.
	 
	15.	 	Choice of Law
	 
	 	 	This Agreement shall be construed under, and governed by, the laws of the Commonwealth of
Massachusetts, without giving effect to its conflict of laws principles. Grantee agrees to
bring any Federal or State legal proceedings arising under this Grant in which the
Commonwealth or MDFA is a party in a court of competent jurisdiction within the Commonwealth
of Massachusetts. This Section shall not be construed to limit any other legal rights of the
parties.
	 
	16.	 	Force Majeure
	 
	 	 	Neither party shall be liable to the other, or be deemed to be in breach of this Agreement
for any failure or delay in rendering performance arising out of causes beyond its
reasonable control and without its fault or negligence (“Force Majeure”). Such
causes may include, but are not limited to, acts of God or of a public enemy (including
terrorist attacks), fires, floods, epidemics, quarantine restrictions, freight embargoes, or
unusually severe weather. Except as otherwise provided in this Agreement, dates or times of
performance, including limits set on making advances of Grant funds, shall be extended to
the extent of delays excused by Force Majeure, provided that the party whose performance is
affected notifies the other promptly in writing of the existence and nature of such delay.
Nothing in this Section 16 shall be deemed to apply to MDFA’s obligation to advance Grant
funds as and when due pursuant to the terms of Section 5 of this Agreement.
	 
	17.	 	Waivers
	 
	 	 	Conditions, covenants, duties and obligations contained in this Agreement may be waived only
by written agreement between the parties. Forbearance or indulgence in any form or manner by
a party shall not be construed as a waiver, nor in any way limit the remedies available to
that party.
	 
	18.	 	Notice
	 
	 	 	Any notice under this Agreement shall be in writing and shall be sent either (i) by
facsimile, (ii) by courier, or (iii) by first class mail, postage, prepaid, to the address
as set forth below (or to such other address as a party may provide by notice to the party
pursuant to this Section), and shall be effective (i) if dispatched by facsimile and
delivery is electronically confirmed by said media, the day such electronic confirmation is
received, (ii) if sent by courier, one business day after dispatch, (iii) if sent by first
class mail, five business days after its date of posting. The address for such notice for
each party is as follows:

	 	 	 	 	 
	 

	 	If to MDFA:
	 	Massachusetts Development Finance Agency
	 

	 	 	 	160 Federal Street 
	 

	 	 	 	Boston, MA 02110
	 

	 	 	 	617/330-2000 (phone) 

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Project Grant Agreement: Evergreen Solar, Inc.

	 	 	 	 	 
	 

	 	 	 	617/330-2054 (fax) 
	 

	 	 	 	Attn: Richard W. Holtz, General Counsel
	 
	 	 	 	 
	 

	 	If to Grantee:
	 	Evergreen Solar, Inc.
	 

	 	 	 	138 Bartlett Street
	 

	 	 	 	Marlborough, MA 01752
	 

	 	 	 	508/357-2221 (phone) 
	 

	 	 	 	508/229.0747 (fax) 
	 

	 	 	 	Attn: Richard Chleboski, Vice President

	19.	 	Amendments, Entire Agreement and Exhibit
	 
	 	 	All conditions, covenants, duties and obligations contained in the Agreement may be amended
only through a written amendment signed by the Parties. The Parties understand and agree
that this Agreement supersedes all other verbal and written agreements and negotiations by
the Parties regarding the matters contained herein. The following are attached and
incorporated into this Agreement:

EXHIBIT A — GROUND LEASE

	 	 	 	 	 	 	 	 	 	 	 
	Massachusetts Development Finance Agency	 	 	 	Evergreen Solar, Inc.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Robert L. Culver
 

	 	 
	 	By:
	 	/s/ Richard Chleboski
 

	 	 
	Name: Robert L. Culver	 	 	 	Name: Richard Chleboski	 	 
	Title: President and Chief Executive Officer	 	 	 	Title: Vice President	 	 
	Date: November 20, 2007	 	 	 	Date: November 20, 2007	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	APPROVED AS TO FORM:	 	 	 	 	 	 	 	 
	 
	MASSACHUSETTS DEVELOPMENT FINANCE AGENCY	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Richard W. Holtz
 

Richard W. Holtz, General Counsel
	 	 	 	 	 	 	 	 

Page 9

 

EXHIBIT A

Ground Lease

 

 

Attachment
A

Jobs Target Schedule

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Targeted
	 	 	Total MA	 	 	 	 	 	Job Years
	Year	 	Employment	 	Retained Jobs	 	Created
	1
	 	 	360	 	 	 	310	 	 	 	50	 
	2
	 	 	460	 	 	 	310	 	 	 	200	 
	3
	 	 	660	 	 	 	310	 	 	 	550	 
	4
	 	 	660	 	 	 	310	 	 	 	900	 
	5
	 	 	660	 	 	 	310	 	 	 	1250	 
	6
	 	 	660	 	 	 	310	 	 	 	1600	 
	7
	 	 	660	 	 	 	310	 	 	 	1950	 
	8
	 	 	660	 	 	 	310	 	 	 	2300	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Total Job Years
	 	 	 	 	 	 	2300	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Grant Amount
	 	 	 	 	 	$	10,000,000	 	 	 	 	 
	Amount per Job Year
	 	 	 	 	 	$	4,348  	 | Amount / Job Years
	Retained Jobs
	 	 	 	 	 	 	310	 	 	 	 	 

EXAMPLES

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Year
	 	 	1	 	 	 	2	 	 	 	3	 	 	 	4	 	 	 	5	 	 	 	6	 	 	 	7	 	 	 	8	 	 	Total
	Example 1
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Actual jobs
	 	 	660	 	 	 	660	 	 	 	660	 	 	 	660	 	 	 	660	 	 	 	660	 	 	 	660	 	 	 	660	 	 	 	 	 
	 	 	 	 	 	 	 
	Actual New Job Years Created
	 	 	350	 	 	 	350	 	 	 	350	 	 	 	350	 	 	 	350	 	 	 	350	 	 	 	350	 	 	 	350	 	 	 	 	 
	 	 	 	 	 	 	 
	Actual Cumulative Job Years
	 	 	350	 	 	 	700	 	 	 	1050	 	 	 	1400	 	 	 	1750	 	 	 	2100	 	 	 	2450	 	 	 	2800	 	 	 	 	 
	Target Cumulative Job Years
	 	 	50	 	 	 	200	 	 	 	550	 	 	 	900	 	 	 	1250	 	 	 	1600	 	 	 	1950	 	 	 	2300	 	 	 	 	 
	Variance to Target
	 	 	300	 	 	 	500	 	 	 	500	 	 	 	500	 	 	 	500	 	 	 	500	 	 	 	500	 	 	 	500	 	 	 	 	 
	Earned Amount See sec 9(b)(ii)
	 	 	1,521,800	 	 	 	1,521,800	 	 	 	1,521,800	 	 	 	1,521,800	 	 	 	1,521,800	 	 	 	1,521,800	 	 	 	869,200	 	 	 	 	 	 	 	10,000,000	 
	Forfeit (less than minimum cumulative job years) See Sec 9(b)(iii)
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	Reearnings of Forfeited amounts
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	 
	Cumulative Earned Amount See sec 9(b)(ii)
	 	 	1,521,800	 	 	 	3,043,600	 	 	 	4,565,400	 	 	 	6,087,200	 	 	 	7,609,000	 	 	 	9,130,800	 	 	 	10,000,000	 	 	 	10,000,000	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Year	 	1	 	2	 	3	 	4	 	5	 	6	 	7	 	8	 	Total
	Example 2
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Actual jobs
	 	 	310	 	 	 	400	 	 	 	510	 	 	 	600	 	 	 	660	 	 	 	670	 	 	 	700	 	 	 	700	 	 	 	 	 
	 	 	 	 	 	 	 
	Actual New Job Years Created
	 	 	0	 	 	 	90	 	 	 	200	 	 	 	290	 	 	 	350	 	 	 	360	 	 	 	390	 	 	 	390	 	 	 	 	 
	 	 	 	 	 	 	 
	Actual Cumulative Job Years
	 	 	0	 	 	 	90	 	 	 	290	 	 	 	580	 	 	 	930	 	 	 	1290	 	 	 	1680	 	 	 	2070	 	 	 	 	 
	Target Cumulative Job Years
	 	 	50	 	 	 	200	 	 	 	550	 	 	 	900	 	 	 	1250	 	 	 	1600	 	 	 	1950	 	 	 	2300	 	 	 	 	 
	Variance to Target
	 	 	-50	 	 	 	-110	 	 	 	-260	 	 	 	-320	 	 	 	-320	 	 	 	-310	 	 	 	-270	 	 	 	-230	 	 	 	 	 
	Earned Amount See sec 9(b)(ii)
	 	 	—	 	 	 	391,320	 	 	 	869,600	 	 	 	1,260,920	 	 	 	1,521,800	 	 	 	1,565,280	 	 	 	1,695,720	 	 	 	1,695,720	 	 	 	9,000,360	 
	Forfeit (less than minimum cumulative job years) See Sec 9(b)(iii)
	 	 	 	 	 	 	 	 	 	 	(1,130,480	)	 	 	(260,880	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(1,391,360	)
	Reearnings of Forfeited amounts
	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	43,480	 	 	 	173,920	 	 	 	173,920	 	 	 	391,320	 
	 
	Cumulative Earned Amount See sec 9(b)(ii)
	 	 	—	 	 	 	391,320	 	 	 	1,260,920	 	 	 	2,521,840	 	 	 	4,043,640	 	 	 	5,608,920	 	 	 	7,304,640	 	 	 	9,000,360

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