Document:

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                                                                   EXHIBIT 10.11

                                   EMPI, INC.
                              EQUITY INCENTIVE PLAN

                                   ARTICLE 1

                                     PURPOSE

         The purpose of the Empi, Inc. Equity Incentive Plan (the "Plan") is to
promote the success and enhance the value of Empi, Inc. (the "Company") by
linking the personal interests of the members of the Board, Employees, and
Consultants to those of Company stockholders and by providing such individuals
with an incentive for outstanding performance to generate superior returns to
Company stockholders. The Plan is further intended to provide flexibility to the
Company in its ability to motivate, attract, and retain the services of members
of the Board, Employees, and Consultants upon whose judgment, interest, and
special effort the successful conduct of the Company's operation is largely
dependent.

                                   ARTICLE 2

                          DEFINITIONS AND CONSTRUCTION

         Wherever the following terms are used in the Plan they shall have the
meanings specified below, unless the context clearly indicates otherwise. The
singular pronoun shall include the plural where the context so indicates.

         2.1 "Award" means an award of an Option or of Restricted Stock granted
              -----
to a Participant pursuant to the Plan.

         2.2 "Award Agreement" means any written agreement, contract, or other
              ---------------
instrument or document evidencing an Award.

         2.3 "Board" means the Board of Directors of the Company.
              -----

         2.4 "Change in Control" means the consummation by the Company (whether
              -----------------
directly involving the Company or indirectly involving the Company through one
or more intermediaries) of (x) a merger, consolidation, reorganization, business
combination or sale or other disposition of the equity securities of the Company
with or to an Unaffiliated Person, whereby the Initial Investor(s) receive
consideration for their equity securities of the Company that is substantially
all cash or (y) a sale or other disposition of all or substantially all of the
Company's assets to an Unaffiliated Person, whereby the Initial Investors
receive consideration for such assets that is substantially all cash. The
Committee shall have full and final authority, which shall be exercised in its
sole discretion, to determine conclusively whether a Change in Control of the
Company has occurred pursuant to the above definition, and the date of the
occurrence of such Change in Control and any incidental matters relating
thereto.

         2.5 "Code" means the Internal Revenue Code of 1986, as amended.
              ----

         2.6 "Committee" means the committee of the Board described in
              ---------
Article 9.

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         2.7 "Consultant" means any consultant or adviser if:
              ----------

             (a) The consultant or adviser renders bona fide services to the
Company;

             (b) The services rendered by the consultant or adviser are not in
connection with the offer or sale of securities in a capital-raising transaction
and do not directly or indirectly promote or maintain a market for the Company's
securities; and

             (c) The consultant or adviser is a natural person who has
contracted directly with the Company to render such services.

         2.8 "Covered Employee" means an Employee who is, or could be, a
              ----------------
"covered employee" within the meaning of Section 162(m) of the Code.

         2.9 "Disability" means that the Participant qualifies to receive
              ----------
long-term disability payments under the Company's long-term disability insurance
program, as it may be amended from time to time.

         2.10 "Effective Date" shall have the meaning set forth in Section 10.1.
               --------------

         2.11 "Eligible Individual" shall mean any person who is a member of the
               -------------------
Board, Consultant of Employee, as determined by the Committee.

         2.12 "Employee" means any officer or other employee (as defined in
               --------
accordance with Section 3401(c) of the Code) of the Company or any Subsidiary.

         2.13 "Exchange Act" means the Securities Exchange Act of 1934, as
               ------------
amended.

         2.14 "Fair Market Value" means, as of any given date, the average
               -----------------
closing price of a share of Stock as reported on the New York Stock Exchange (or
any national securities exchange on which such shares are then trading), on the
twenty trading days immediately preceding such date.

         2.15 "Incentive Stock Option" means an Option that is intended to meet
               ----------------------
the requirements of Section 422 of the Code or any successor provision thereto.

         2.16 "Independent Director" means a Director who is not an Employee of
               --------------------
the Company.

         2.17 "Non-Employee Director" means a member of the Board who qualifies
               ---------------------
as a "Non-Employee Director" as defined in Rule 16b-3(b)(3) of the Exchange Act,
or any successor definition adopted by the Board.

         2.18 "Non-Qualified Stock Option" means an Option that is not intended
               --------------------------
to be an Incentive Stock Option.

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         2.19 "Option" means a right granted to a Participant pursuant to
               ------
Article 5 of the Plan to purchase a specified number of shares of Stock at a
specified price during specified time periods. An Option may be either an
Incentive Stock Option or a Non-Qualified Stock Option.

         2.20 "Participant" means any Eligible Individual who, as a member of
               -----------
the Board, Consultant or Employee, has been granted an Award pursuant to the
Plan.

         2.21 "Performance-Based Award" means an Award granted to selected
               -----------------------
Covered Employees pursuant to Article 6. All Performance-Based Awards are
intended to qualify as Qualified Performance-Based Compensation.

         2.22 "Performance Criteria" means the criteria that the Committee
               --------------------
selects for purposes of establishing the Performance Goal or Performance Goals
for a Participant for a Performance Period. The Performance Criteria that will
be used to establish Performance Goals are limited to the following: net
earnings (either before or after interest, taxes, depreciation and
amortization), economic value-added (as determined by the Committee), sales or
revenue, net income (either before or after taxes), operating earnings, cash
flow (including, but not limited to, operating cash flow and free cash flow),
cash flow return on capital, return on net assets, return on stockholders'
equity, return on assets, return on capital, stockholder returns, return on
sales, gross or net profit margin, productivity, expense, margins, operating
efficiency, customer satisfaction, working capital, earnings per share, price
per share of Stock, and market share, any of which may be measured either in
absolute terms or as compared to any incremental increase or as compared to
results of a peer group. The Committee shall, within the time prescribed by
Section 162(m) of the Code, define in an objective fashion the manner of
calculating the Performance Criteria it selects to use for such Performance
Period for such Participant.

         2.23 "Performance Goals" means, for a Performance Period, the goals
               -----------------
established in writing by the Committee for the Performance Period based upon
the Performance Criteria. Depending on the Performance Criteria used to
establish such Performance Goals, the Performance Goals may be expressed in
terms of overall Company performance or the performance of a division, business
unit, or an individual. The Committee, in its discretion, may, within the time
prescribed by Section 162(m) of the Code, adjust or modify the calculation of
Performance Goals for such Performance Period in order to prevent the dilution
or enlargement of the rights of Participants (i) in the event of, or in
anticipation of, any unusual or extraordinary corporate item, transaction,
event, or development, or (ii) in recognition of, or in anticipation of, any
other unusual or nonrecurring events affecting the Company, or the financial
statements of the Company, or in response to, or in anticipation of, changes in
applicable laws, regulations, accounting principles, or business conditions.

         2.24 "Performance Period" means the one or more periods of time, which
               ------------------
may be of varying and overlapping durations, as the Committee may select, over
which the attainment of one or more Performance Goals will be measured for the
purpose of determining a Participant's right to a Performance-Based Award.

         2.25 "Person" means an individual, partnership, corporation, limited
               ------
liability company, business trust, joint stock company, trust, unincorporated
association, joint venture, governmental authority or other entity of whatever
nature.

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         2.26 "Plan" means this Empi, Inc. Equity Incentive Plan, as it may be
               ----
amended from time to time.

         2.27 "Public Trading Date" means the first date upon which Stock is
               -------------------
listed (or approved for listing) upon notice of issuance on any securities
exchange or designated (or approved for designation) upon notice of issuance as
a national market security on an interdealer quotation system.

         2.28 "Qualified Performance-Based Compensation" means any compensation
               ----------------------------------------
that is intended to qualify as "qualified performance-based compensation" as
described in Section 162(m)(4)(C) of the Code.

         2.29 "Restricted Stock" means Stock awarded to a Participant pursuant
               ----------------
to Article 6 that is subject to certain restrictions and may be subject to risk
of forfeiture.

         2.30 "Securities Act" means the Securities Act of 1933, as amended.
               --------------

         2.31 "Stock" means the common stock of the Company, par value $0.01 per
               -----
share, and such other securities of the Company that may be substituted for
Stock pursuant to Article 8.

         2.32 "Subsidiary" means any "subsidiary corporation" as defined in
               ----------
Section 424(f) of the Code and any applicable regulations promulgated thereunder
or any other entity of which a majority of the outstanding voting stock or
voting power is beneficially owned directly or indirectly by the Company.

         2.33 "Termination of Employment" means the time when the
               -------------------------
employee-employer relationship between a Participant and the Company (or one of
its Subsidiaries) is terminated for any reason, with or without cause,
including, but not by way of limitation, a termination by resignation,
discharge, death or retirement, but excluding (a) a termination where there is a
simultaneous reemployment by the Company (or one of its Subsidiaries), (b) at
the discretion of the Committee, terminations which result in a temporary
severance of the employee-employer relationship, and (c) at the discretion of
the Committee, terminations which are followed by the simultaneous establishment
of a consulting relationship by the Company or a Subsidiary with the former
employee. The Committee shall determine the effect of all matters and questions
relating to Termination of Employment, including, but not by way of limitation,
the question of whether a Termination of Employment resulted from a discharge
for good cause, and all questions of whether a particular leave of absence
constitutes a Termination of Employment; provided, however, that, with respect
to Incentive Stock Options, unless otherwise determined by the Committee in its
discretion, a leave of absence shall constitute a Termination of Employment if,
and to the extent that, such leave of absence interrupts employment for the
purposes of Section 422(a)(2) of the Code and the then applicable regulations
and revenue rulings under Section 442(a)(2) of the Code.

         2.34 "Unaffiliated Person" means a Person or related "group" of Persons
               -------------------
(as such term is used in Sections 13(d) and 14(d)(2) of the Exchange Act) that
is not an "affiliate" (as such term is used in Section 13 of the Exchange Act)
of a Person or "group" that is a stockholder of the Company on the date this
plan is adopted by the Company (any such stockholder, an "Initial Investor").

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                                   ARTICLE 3

                           SHARES SUBJECT TO THE PLAN

         3.1 Number of Shares.
             ----------------

             (a) Subject to Article 8 and Section 3.1(b), the aggregate number
of shares of Stock which may be issued or transferred pursuant to Awards under
the Plan shall not exceed in the aggregate 500,000 shares of Stock, plus an
annual increase beginning on December 31, 2005 and ending on December 31, 2009
equal to up to 100,000 shares of the Stock outstanding as of the Effective Date
(or such lesser number of shares as is determined by the Board). For the
avoidance of doubt, on or after December 31, 2009, the aggregate number of
shares of Stock which may be issued or transferred pursuant to Awards under the
Plan shall not exceed in the aggregate 900,000 shares of Stock.

             (b) Notwithstanding Section 3.1(a): (i) the Committee may adopt
reasonable counting procedures to ensure appropriate counting, avoid double
counting (as, for example, in the case of tandem or substitute awards), and make
adjustments if the number of shares of Stock actually delivered differs from the
number of shares previously counted in connection with an Award; (ii) shares of
Stock that are potentially deliverable under any Award that expires or is
canceled, forfeited, settled in cash or otherwise terminated without a delivery
of such shares to the Participant will not be counted as delivered under the
Plan; (iii) shares of Stock that have been issued in connection with any Award
(e.g., Restricted Stock) that is canceled, forfeited, or settled in cash such
that those shares are returned to the Company will again be available for
Awards; and (iv) shares of Stock withheld in payment of the exercise price or
taxes relating to any Option shall be deemed to constitute shares not delivered
to the Participant and shall be deemed to be available for Awards under the
Plan; provided, however, that, no shares shall become available pursuant to this
Section 3.1(b) to the extent that (x) the transaction resulting in the return of
shares occurs more than ten years after the date of the most recent shareholder
approval of the Plan, or (y) such return of shares would constitute a "material
revision" of the Plan subject to stockholder approval under then applicable
rules of the New York Stock Exchange (or any other applicable exchange or
quotation system). In addition, in the case of any Award granted in substitution
for an award of a company or business acquired by the Company or a subsidiary or
affiliate, shares of Stock issued or issuable in connection with such substitute
Award shall not be counted against the number of shares reserved under the Plan,
but shall be available under the Plan by virtue of the Company's assumption of
the plan or arrangement of the acquired company or business. This Section 3.1
shall apply to the share limit imposed to conform to the regulations promulgated
under the Code with respect to Incentive Stock Options only to the extent
consistent with applicable regulations relating to Incentive Stock Options under
the Code. Because shares of Stock will count against the number reserved in
Section 3.1 upon delivery, the Committee may, subject to the share counting
rules under this Section 3.1, determine that Awards may be outstanding that
relate to a greater number of shares of Stock than the aggregate remaining
available under the Plan, so long as Awards will not result in delivery and
vesting of shares of Stock in excess of the number then available under the
Plan.

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         3.2 Stock Distributed. Any Stock distributed pursuant to an Award may
             -----------------
consist, in whole or in part, of authorized and unissued Stock, treasury Stock
or Stock purchased on the open market.

         3.3 Limitation on Number of Shares Subject to Awards. Notwithstanding
             ------------------------------------------------
any provision in the Plan to the contrary, and subject to Article 8, the maximum
number of shares of Stock with respect to one or more Awards that may be granted
to any one Participant during a rolling three-year period (measured from the
date of any grant) shall be 200,000; provided, however, that the foregoing
limitation shall not apply prior to the Public Trading Date and, following the
Public Trading Date, the foregoing limitation shall not apply until the earliest
of: (a) the first material modification of the Plan (including any increase in
the number of shares reserved for issuance under the Plan in accordance with
Section 3.1); (b) the issuance of all of the shares of Stock reserved for
issuance under the Plan; (c) the expiration of the Plan; (d) the first meeting
of stockholders at which members of the Board are to be elected that occurs
after the close of the third calendar year following the calendar year in which
occurred the first registration of an equity security of the Company under
Section 12 of the Exchange Act; or (e) such other date required by Section
162(m) of the Code and the rules and regulations promulgated thereunder.

                                   ARTICLE 4

                          ELIGIBILITY AND PARTICIPATION

         4.1 Eligibility. Persons eligible to participate in this Plan include
             -----------
Employees, Consultants, and all members of the Board, as determined by the
Committee.

         4.2 Participation. Subject to the provisions of the Plan, the Committee
             -------------
may, from time to time, select from among all Eligible Individuals, those to
whom Awards shall be granted and shall determine the nature and amount of each
Award. No individual shall have any right to be granted an Award pursuant to
this Plan.

                                   ARTICLE 5

                                  STOCK OPTIONS

         5.1 General. Subject to Section 5.3, the Committee is authorized to
             -------
grant Options to Participants on the following terms and conditions:

             (a) Exercise Price. The exercise price per share of Stock subject
                 --------------
to an Option shall be determined by the Committee and set forth in the Award
Agreement; provided that the exercise price for any Option shall not be less
than par value of a share of Stock on the date of grant.

             (b) Time and Conditions of Exercise. The Committee shall determine
                 -------------------------------
the time or times at which an Option may be exercised in whole or in part;
provided that the term of any Option granted under the Plan shall not exceed ten
years; and, provided, further, that, unless otherwise provided in an Award
Agreement, in the case of a Non-Qualified Stock Option, such Option shall be
exercisable for one year after the date of the Participant's death (but not
later

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than the expiration of the original term). The Committee shall also determine
the performance or other conditions, if any, that must be satisfied before all
or part of an Option may be exercised.

             (c) Payment. The Committee shall determine the methods by which the
                 -------
exercise price of an Option may be paid, the form of payment, including, without
limitation, cash, promissory note bearing interest at no less than such rate as
shall then preclude the imputation of interest under the Code, shares of Stock
held for longer than 6 months having a Fair Market Value on the date of delivery
equal to the aggregate exercise price of the Option or exercised portion
thereof, or other property acceptable to the Committee (including through the
delivery of a notice that the Participant has placed a market sell order with a
broker with respect to shares of Stock then issuable upon exercise of the
Option, and that the broker has been directed to pay a sufficient portion of the
net proceeds of the sale to the Company in satisfaction of the Option exercise
price; provided that payment of such proceeds is then made to the Company upon
settlement of such sale), and the methods by which shares of Stock shall be
delivered or deemed to be delivered to Participants. Notwithstanding any other
provision of the Plan to the contrary, no Participant who is a member of the
Board or an "executive officer" of the Company within the meaning of Section
13(k) of the Exchange Act shall be permitted to pay the exercise price of an
Option in any method which would violate Section 13(k) of the Exchange Act.

             (d) Evidence of Grant. All Options shall be evidenced by a written
                 -----------------
Award Agreement between the Company and the Participant. The Award Agreement
shall include such additional provisions as may be specified by the Committee.

         5.2 Incentive Stock Options. Incentive Stock Options may be granted
             -----------------------
only to officers or other Employees of the Company and any Subsidiary, and the
terms of any Incentive Stock Options granted pursuant to the Plan must comply
with the following additional provisions of this Section 5.2:

             (a) Exercise Price. The exercise price per share of Stock or any
                 --------------
Incentive Stock Option shall be set by the Committee; provided that the exercise
price for any Incentive Stock Option shall not be less than 100% of the Fair
Market Value on the date of grant.

             (b) Expiration of Option. An Incentive Stock Option may not be
                 --------------------
exercised to any extent by anyone after the first to occur of the following
events:

                 (i) Ten years from the date it is granted, unless an earlier
time is set in the Award Agreement.

                 (ii) The Participant's termination of employment or service for
any reason other than the Participant's death or Disability, unless otherwise
provided in the Award Agreement.

                 (iii) One year after the date of the Participant's termination
of employment or service on account of Disability or death. Upon the
Participant's Disability or death, any Incentive Stock Options exercisable at
the Participant's Disability or death may be exercised by the Participant's
legal representative or representatives, by the person or persons entitled to do
so pursuant to the Participant's last will and testament, or, if the Participant
fails to

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make testamentary disposition of such Incentive Stock Option or dies intestate,
by the person or persons entitled to receive the Incentive Stock Option pursuant
to the applicable laws of descent and distribution.

             (c) Individual Dollar Limitation. The aggregate Fair Market Value
                 ----------------------------
(determined as of the time the Option is granted) of all shares of Stock with
respect to which Incentive Stock Options are first exercisable by a Participant
in any calendar year may not exceed $100,000.00 or such other limitation as
imposed by Section 422(d) of the Code, or any successor provision. To the extent
that Incentive Stock Options are first exercisable by a Participant in excess of
such limitation, the excess shall be considered Non-Qualified Stock Options.

             (d) Ten Percent Owners. An Incentive Stock Option shall be granted
                 ------------------
to any individual who, at the date of grant, owns stock possessing more than ten
percent of the total combined voting power of all classes of Stock of the
Company only if such Option is granted at a price that is not less than 110% of
Fair Market Value on the date of grant and the Option is exercisable for no more
than five years from the date of grant.

             (e) Transfer Restriction. The Participant shall give the Company
                 --------------------
prompt notice of any disposition of shares of Stock acquired by exercise of an
Incentive Stock Option within (i) two years from the date of grant of such
Incentive Stock Option or (ii) one year after the transfer of such shares of
Stock to the Participant.

             (f) Expiration of Incentive Stock Options. No Award of an Incentive
                 -------------------------------------
Stock Option may be made pursuant to this Plan after the tenth anniversary of
the Effective Date.

             (g) Right to Exercise. During a Participant's lifetime, an
                 -----------------
Incentive Stock Option may be exercised only by the Participant.

         5.3 Granting of Options to Independent Directors. The Board may from
             --------------------------------------------
time to time, in its sole discretion, and subject to the limitations of the
Plan:

             (a) Select from among the Independent Directors (including
Independent Directors who have previously been granted Options under the Plan)
such of them as in its opinion should be granted Options;

             (b) Subject to Section 3.3, determine the number of shares of Stock
that may be purchased upon exercise of the Options granted to such selected
Independent Directors; and

             (c) Subject to the provisions of this Article 5, determine the
terms and conditions of such Options, consistent with the Plan.

Options granted to Independent Directors shall be Non-Qualified Stock Options.

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                                   ARTICLE 6

                             RESTRICTED STOCK AWARDS

         6.1 Grant of Restricted Stock. The Committee is authorized to make
             -------------------------
Awards of Restricted Stock to any Participant selected by the Committee in such
amounts and subject to such terms and conditions, including but not limited to
the vesting period, as determined by the Committee. All Awards of Restricted
Stock shall be evidenced by a written Award Agreement.

         6.2 Issuance and Restrictions. Restricted Stock shall be subject to
             -------------------------
such restrictions on transferability and other restrictions as the Committee may
impose (including, without limitation, limitations on the right to vote
Restricted Stock or the right to receive dividends on the Restricted Stock).
These restrictions may lapse separately or in combination at such times,
pursuant to such circumstances, in such installments, or otherwise, as the
Committee determines at the time of the grant of the Award or thereafter.

         6.3 Forfeiture. Except as otherwise determined by the Committee at the
             ----------
time of the grant of the Award or thereafter, upon termination of employment or
service during the applicable restriction period, Restricted Stock that is at
that time subject to restrictions shall be forfeited; provided, however, that
the Committee may (a) provide in any Award Agreement that restrictions or
forfeiture conditions relating to Restricted Stock will be waived in whole or in
part in the event of terminations resulting from specified causes, and (b) in
other cases waive in whole or in part restrictions or forfeiture conditions
relating to Restricted Stock.

         6.4 Performance-Based Awards.
             ------------------------

             (a) Generally. To the extent necessary to comply with the Qualified
                 ---------
Performance-Based Compensation requirements of Section 162(m)(4)(C) of the Code,
with respect to Restricted Stock granted under this Article 6 which may be
granted to one or more Covered Employees, no later than ninety (90) days
following the commencement of any fiscal year in question or any other
designated fiscal period or period of service (or such other time as may be
required or permitted by Section 162(m) of the Code), the Committee shall, in
writing, (i) designate one or more Covered Employees, (ii) select the
Performance Criteria applicable to the Performance Period, (iii) establish the
Performance Goals, and amounts of such Restricted Stock, as applicable, which
may be earned for such Performance Period, and (iv) specify the relationship
between Performance Criteria and the Performance Goals and the amounts of such
Restricted Stock, as applicable, to be earned by each Covered Employee for such
Performance Period. Following the completion of each Performance Period, the
Committee shall certify in writing whether the applicable Performance Goals have
been achieved for such Performance Period. In determining the amount earned by a
Covered Employee, the Committee shall have the right to reduce or eliminate (but
not to increase) the amount payable at a given level of performance to take into
account additional factors that the Committee may deem relevant to the
assessment of individual or corporate performance for the Performance Period.

             (b) Award of Performance-Based Awards. Unless otherwise provided in
                 ---------------------------------
the applicable Award Agreement, a Participant must be employed by the Company or
a Subsidiary on the day a Performance-Based Award is awarded to the Participant.
Furthermore, a Participant

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shall be eligible to receive a Performance-Based Award only if the Performance
Goals for such period are achieved. A Performance-Based Award may be subject to
additional vesting requirements as set forth in the applicable Award Agreement.

             (c) Additional Limitations. Notwithstanding any other provision of
                 ----------------------
the Plan, any Award which is granted to a Covered Employee and is intended to
constitute Qualified Performance-Based Compensation shall be subject to any
additional limitations set forth in Section 162(m) of the Code (including any
amendment to Section 162(m) of the Code) or any regulations or rulings issued
thereunder that are requirements for qualification as qualified
performance-based compensation as described in Section 162(m)(4)(C) of the Code,
and the Plan shall be deemed amended to the extent necessary to conform to such
requirements.

         6.5 Certificates for Restricted Stock. Restricted Stock granted
             ---------------------------------
pursuant to the Plan may be evidenced in such manner as the Committee shall
determine. If certificates representing shares of Restricted Stock are
registered in the name of the Participant, certificates must bear an appropriate
legend referring to the terms, conditions, and restrictions applicable to such
Restricted Stock, and the Company may, at its discretion, retain physical
possession of the certificate until such time as all applicable restrictions
lapse.

                                   ARTICLE 7

                         PROVISIONS APPLICABLE TO AWARDS

         7.1 Award Agreement. Awards under the Plan shall be evidenced by Award
             ---------------
Agreements that set forth the terms, conditions and limitations for each Award
which may include the term of an Award, the provisions applicable in the event
the Participant's employment or service terminates, and the Company's authority
to unilaterally or bilaterally amend, modify, suspend, cancel or rescind an
Award.

         7.2 Amendment of Award Agreements. The Committee at any time, and from
             -----------------------------
time to time, may amend the terms of any one or more existing Award Agreements,
provided, however, that the rights of an Participant under an Award Agreement
shall not be adversely impaired without the Participant's written consent. The
Company shall provide a Participant with notice of any amendment made to such
Participant's existing Award Agreement. For the avoidance of doubt, Award
Agreements are subject to Article 8 of the Plan; accordingly, any action taken
by the Committee pursuant to Article 8 is not an amendment to an Award
Agreement.

         7.3 Limits on Transfer. No right or interest of a Participant in any
             ------------------
Award may be pledged, encumbered, or hypothecated to or in favor of any party
other than the Company or a Subsidiary, or shall be subject to any lien,
obligation, or liability of such Participant to any other party other than the
Company or a Subsidiary. Except as otherwise provided by the Committee, no Award
shall be assigned, transferred, or otherwise disposed of by a Participant other
than by will or the laws of descent and distribution. The Committee by express
provision in the Award or an amendment thereto may permit an Award (other than
an Incentive Stock Option) to be transferred to, exercised by and paid to
certain persons or entities related to the Participant, including but not
limited to members of the Participant's family, charitable institutions, or
trusts or other entities whose beneficiaries or beneficial owners are members of
the Participant's family

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and/or charitable institutions, or to such other persons or entities as may be
expressly approved by the Committee, pursuant to such conditions and procedures
as the Committee may establish. Any permitted transfer shall be subject to the
condition that the Committee receive evidence satisfactory to it that the
transfer is being made for estate and/or tax planning purposes (or to a "blind
trust" in connection with the Participant's termination of employment or service
with the Company or a Subsidiary to assume a position with a governmental,
charitable, educational or similar non-profit institution) and on a basis
consistent with the Company's lawful issue of securities.

         7.4 Beneficiaries. Notwithstanding Section 7.3, a Participant may, in
             -------------
the manner determined by the Committee, designate a beneficiary to exercise the
rights of the Participant and to receive any distribution with respect to any
Award upon the Participant's death. A beneficiary, legal guardian, legal
representative, or other person claiming any rights pursuant to the Plan is
subject to all terms and conditions of the Plan and any Award Agreement
applicable to the Participant, except to the extent the Plan and Award Agreement
otherwise provide, and to any additional restrictions deemed necessary or
appropriate by the Committee. If the Participant is married and resides in a
community property state, a designation of a person other than the Participant's
spouse as his or her beneficiary with respect to more than 50% of the
Participant's interest in the Award shall not be effective without the prior
written consent of the Participant's spouse. If no beneficiary has been
designated or survives the Participant, payment shall be made to the person
entitled thereto pursuant to the Participant's will or the laws of descent and
distribution. Subject to the foregoing, a beneficiary designation may be changed
or revoked by a Participant at any time provided the change or revocation is
filed with the Committee.

         7.5 Stock Certificates. Notwithstanding anything herein to the
             ------------------
contrary, the Company shall not be required to issue or deliver any certificates
evidencing shares of Stock pursuant to the exercise of any Award, unless and
until the Board has determined, with advice of counsel, that the issuance and
delivery of such certificates is in compliance with all applicable laws,
regulations of governmental authorities and, if applicable, the requirements of
any exchange on which the shares of Stock are listed or traded. All Stock
certificates delivered pursuant to the Plan are subject to any stop-transfer
orders and other restrictions as the Committee deems necessary or advisable to
comply with federal, state, or foreign jurisdiction, securities or other laws,
rules and regulations and the rules of any national securities exchange or
automated quotation system on which the Stock is listed, quoted, or traded. The
Committee may place legends on any Stock certificate to reference restrictions
applicable to the Stock. In addition to the terms and conditions provided
herein, the Board may require that a Participant make such reasonable covenants,
agreements, and representations as the Board, in its discretion, deems advisable
in order to comply with any such laws, regulations, or requirements. The
Committee shall have the right to require any Participant to comply with any
timing or other restrictions with respect to the settlement or exercise of any
Award, including a window-period limitation, as may be imposed in the discretion
of the Committee.

                                       11

<PAGE>

                                   ARTICLE 8

                          CHANGES IN CAPITAL STRUCTURE

         8.1 Adjustments.
             -----------

             (a) In the event of any stock dividend, stock split, combination or
exchange of shares, merger, consolidation, spin-off, recapitalization,
distribution of Company assets to stockholders (other than normal cash
dividends), or any other corporate event affecting the shares of Stock or the
share price of the Stock, the Committee may make such proportionate adjustments,
if any, as the Committee in its discretion may deem appropriate to reflect such
changes with respect to (i) the aggregate number and type of shares that may be
issued under the Plan (including, but not limited to, adjustments of the
limitations in Sections 3.1 and 3.3); (ii) the terms and conditions of any
outstanding Awards (including, without limitation, any applicable performance
targets or criteria with respect thereto); and (iii) the grant or exercise price
per share for any outstanding Awards under the Plan. Any adjustment affecting an
Award intended as Qualified Performance-Based Compensation shall be made
consistent with the requirements of Section 162(m) of the Code.

             (b) In the event of any transaction or event described in Section
8.1(a), a liquidation or dissolution of the Company or any unusual or
nonrecurring transactions or events affecting the Company, any affiliate of the
Company, or the financial statements of the Company or any affiliate (including
without limitation any Change in Control), or of changes in applicable laws,
regulations or accounting principles and whenever the Committee determines that
action is appropriate in order to prevent the dilution or enlargement of the
benefits or potential benefits intended to be made available under the Plan or
with respect to any Award under the Plan, to facilitate such transactions or
events or to give effect to such changes in laws, regulations or principles, the
Committee, in its sole discretion and on such terms and conditions as it deems
appropriate, either by amendment of the terms of any outstanding Award or by
action taken prior to the occurrence of such transaction or event and either
automatically or upon the Participant's request, is hereby authorized to take
any one or more of the following actions:

                 (i) To provide for either (A) termination of any such Award in
exchange for an amount of cash, if any, equal to the amount that would have been
attained upon the exercise of such Award or realization of the Participant's
rights (and, for the avoidance of doubt, if as of the date of the occurrence of
the transaction or event described in this Section 8.1(b) the Committee
determines in good faith that no amount would have been attained upon the
exercise of such Award or realization of the Participant's rights, then such
Award may be terminated by the Company without payment) or (B) the replacement
of such Award with other rights or property selected by the Committee in its
sole discretion;

                 (ii) To provide that such Award be assumed by the successor or
survivor corporation, or a parent or subsidiary thereof, or shall be substituted
for by similar options, rights or awards covering the stock of the successor or
survivor corporation, or a parent or subsidiary thereof, with appropriate
adjustments as to the number and kind of shares and prices;

                                       12

<PAGE>

                 (iii) To make adjustments in the number and type of shares of
Stock (or other securities or property) subject to outstanding Awards, and in
the number and kind of outstanding Restricted Stock and/or in the terms and
conditions of (including the grant or exercise price), and the criteria included
in, outstanding options, rights and awards and options, rights and awards which
may be granted in the future;

                 (iv) To provide that such Award shall (whether on or at some
time prior to the occurrence of any such transaction or event) be fully,
exercisable, payable, fully vested or otherwise released from any forfeiture
restrictions with respect to all shares covered thereby, notwithstanding
anything to the contrary in the Plan or the applicable Award Agreement; and

                 (v) To provide that the Award cannot vest, be exercised or
become payable after such event.

         8.2 Outstanding Awards - Other Changes. In the event of any other
             ----------------------------------
change in the capitalization of the Company or corporate change other than those
specifically referred to in this Article 8, the Committee may, in its absolute
discretion, make such adjustments in the number and kind of shares or other
securities subject to Awards outstanding on the date on which such change occurs
and in the per share grant or exercise price of each Award as the Committee may
consider appropriate to prevent dilution or enlargement of rights.

         8.3 No Other Rights. Except as expressly provided in the Plan, no
             ---------------
Participant shall have any rights by reason of any subdivision or consolidation
of shares of stock of any class, the payment of any dividend, any increase or
decrease in the number of shares of stock of any class or any dissolution,
liquidation, merger, or consolidation of the Company or any other corporation.
Except as expressly provided in the Plan or pursuant to action of the Committee
under the Plan, no issuance by the Company of shares of stock of any class, or
securities convertible into shares of stock of any class, shall affect, and no
adjustment by reason thereof shall be made with respect to, the number of shares
of Stock subject to an Award or the grant or exercise price of any Award.

                                   ARTICLE 9

                                 ADMINISTRATION

         9.1 Committee. Unless and until the Board delegates administration of
             ---------
the Plan to a Committee as set forth below, the Plan shall be administered by
the full Board, and for such purposes the term "Committee" as used in this Plan
shall be deemed to refer to the Board. The Board, at its discretion or as
otherwise necessary to comply with the requirements of Section 162(m) of the
Code, Rule 16b-3 promulgated under the Exchange Act or to the extent required by
any other applicable rule or regulation, shall delegate administration of the
Plan to a Committee. The Committee shall consist solely of two or more members
of the Board each of whom is both an "outside director," within the meaning of
Section 162(m) of the Code and a Non-Employee Director. Notwithstanding the
foregoing: (a) the full Board, acting by a majority of its members in office,
shall conduct the general administration of the Plan with respect to all Awards
granted to Independent Directors and for purposes of such Awards the term

                                       13

<PAGE>

"Committee" as used in this Plan shall be deemed to refer to the Board and (b)
the Committee may delegate its authority hereunder to the extent permitted by
Section 9.5. Appointment of Committee members shall be effective upon acceptance
of appointment. The Board may abolish the Committee at any time and revest in
the Board the administration of the Plan. Committee members may resign at any
time by delivering written notice to the Board. Vacancies in the Committee may
only be filled by the Board.

         9.2 Action by the Committee. A majority of the Committee shall
             -----------------------
constitute a quorum. The acts of a majority of the members present at any
meeting at which a quorum is present, and acts approved in writing by a majority
of the Committee in lieu of a meeting, shall be deemed the acts of the
Committee. Each member of the Committee is entitled to, in good faith, rely or
act upon any report or other information furnished to that member by any officer
or other employee of the Company or any Subsidiary, the Company's independent
certified public accountants, or any executive compensation consultant or other
professional retained by the Company to assist in the administration of the
Plan.

         9.3 Authority of Committee. Subject to any specific designation in the
             ----------------------
Plan, the Committee has the exclusive power, authority and discretion to:

             (a) Designate Participants to receive Awards;

             (b) Determine the type or types of Awards to be granted to each
Participant;

             (c) Determine the number of Awards to be granted and the number of
shares of Stock to which an Award will relate;

             (d) Determine the terms and conditions of any Award granted
pursuant to the Plan, including, but not limited to, the exercise price, grant
price, or purchase price, any reload provision, any restrictions or limitations
on the Award, any schedule for lapse of forfeiture restrictions or restrictions
on the exercisability of an Award, and accelerations or waivers thereof, any
provisions related to non-competition and recapture of gain on an Award, based
in each case on such considerations as the Committee in its sole discretion
determines; provided, however, that the Committee shall not have the authority
to accelerate the vesting or waive the forfeiture of any Performance-Based
Awards;

             (e) Determine whether, to what extent, and pursuant to what
circumstances an Award may be settled in, or the exercise price of an Award may
be paid in, cash, Stock, other Awards, or other property, or an Award may be
canceled, forfeited, or surrendered;

             (f) Prescribe the form of each Award Agreement, which need not be
identical for each Participant;

             (g) Decide all other matters that must be determined in connection
with an Award;

             (h) Establish, adopt, or revise any rules and regulations as it may
deem necessary or advisable to administer the Plan;

                                       14

<PAGE>

             (i) Interpret the terms of, and any matter arising pursuant to, the
Plan or any Award Agreement; and

             (j) Make all other decisions and determinations that may be
required pursuant to the Plan or as the Committee deems necessary or advisable
to administer the Plan.

         9.4 Decisions Binding. The Committee's interpretation of the Plan, any
             -----------------
Awards granted pursuant to the Plan, any Award Agreement and all decisions and
determinations by the Committee with respect to the Plan are final, binding, and
conclusive on all parties.

         9.5 Delegation of Authority. To the extent permitted by applicable law,
             -----------------------
the Committee may from time to time delegate to a committee of one or more
members of the Board or one or more officers of the Company the authority to
grant or amend Awards to Participants other than (a) senior executives of the
Company who are subject to Section 16 of the Exchange Act, (b) Covered
Employees, or (c) officers of the Company (or members of the Board) to whom
authority to grant or amend Awards has been delegated hereunder. Any delegation
hereunder shall be subject to the restrictions and limits that the Committee
specifies at the time of such delegation, and the Committee may at any time
rescind the authority so delegated or appoint a new delegatee. At all times, the
delegatee appointed under this Section 9.5 shall serve in such capacity at the
pleasure of the Committee.

                                   ARTICLE 10

                          EFFECTIVE AND EXPIRATION DATE

         10.1 Effective Date. The Plan is effective as of the date the Plan is
              --------------
approved by the Company's stockholders (the "Effective Date"). The Plan will be
                                             --------------
deemed to be approved by the stockholders if it receives the affirmative vote of
the holders of a majority of the shares of stock of the Company present or
represented and entitled to vote at a meeting duly held in accordance with the
applicable provisions of the Company's Bylaws.

         10.2 Expiration Date. The Plan will expire on, and no Award may be
              ---------------
granted pursuant to the Plan after, the earlier of the tenth anniversary of (i)
the Effective Date or (ii) the date this Plan is approved by the Board. Any
Awards that are outstanding on the tenth anniversary of the Effective Date shall
remain in force according to the terms of the Plan and the applicable Award
Agreement.

                                   ARTICLE 11

                    AMENDMENT, MODIFICATION, AND TERMINATION

         11.1 Amendment, Modification, And Termination. With the approval of the
              ----------------------------------------
Board, at any time and from time to time, the Committee may terminate, amend or
modify the Plan; provided, however, that (a) to the extent necessary and
desirable to comply with any applicable law, regulation, or stock exchange rule,
the Company shall obtain stockholder approval of any Plan amendment in such a
manner and to such a degree as required, and (b) stockholder approval is
required for any amendment to the Plan that (i) increases the number of shares
available under the Plan (other than any adjustment as provided by Article 8),
(ii) permits the Committee to grant

                                       15

<PAGE>

Options with an exercise price that is below Fair Market Value on the date of
grant, or (iii) permits the Committee to extend the exercise period for an
Option beyond ten years from the date of grant. Notwithstanding any provision in
this Plan to the contrary, absent approval of the stockholders of the Company,
no Option may be amended to reduce the per share exercise price of the shares
subject to such Option below the per share exercise price as of the date the
Option is granted and, except as permitted by Article 8, no Option may be
granted in exchange for, or in connection with, the cancellation or surrender of
an Option having a higher per share exercise price.

         11.2 Awards Previously Granted. Except as otherwise permitted pursuant
              -------------------------
to Article 8, no termination, amendment, or modification of the Plan shall
adversely affect in any material way any Award previously granted pursuant to
the Plan without the prior written consent of the Participant.

         11.3 Acceleration Upon a Change in Control. Notwithstanding Section
              -------------------------------------
8.1, and except as may otherwise be provided in any applicable Award Agreement
or other written agreement entered into between the Company and a Participant,
if a Change in Control occurs and a Participant's Awards are not converted,
assumed, or replaced by a successor, the Committee, in its sole discretion, is
hereby authorized to provide that such Awards shall become fully exercisable and
all forfeiture restrictions on such Awards shall lapse. Upon, or in anticipation
of, a Change in Control, the Committee may cause any and all Awards outstanding
hereunder to terminate at a specific time in the future, including but not
limited to the date of such Change in Control, and may give each Participant the
right to exercise such Awards during a period of time as the Committee, in its
sole and absolute discretion, shall determine. In the event that the terms of
any agreement between the Company or any Company subsidiary or affiliate and a
Participant contains provisions that conflict with and are more restrictive than
the provisions of Section 8.1, Section 8.1 shall prevail and control and the
more restrictive terms of such agreement (and only such terms) shall be of no
force or effect.

                                   ARTICLE 12

                               GENERAL PROVISIONS

         12.1 No Rights to Awards. No Participant, employee, or other person
              -------------------
shall have any claim to be granted any Award pursuant to the Plan, and neither
the Company nor the Committee is obligated to treat Participants, employees, and
other persons uniformly.

         12.2 No Stockholders Rights. No Award gives the Participant any of the
              ----------------------
rights of a stockholder of the Company unless and until shares of Stock are in
fact issued to such person in connection with such Award.

         12.3 Withholding. The Company or any Subsidiary shall have the
              -----------
authority and the right to deduct or withhold, or require a Participant to remit
to the Company, an amount sufficient to satisfy federal, state, local and
foreign taxes (including the Participant's FICA obligation) required by law to
be withheld with respect to any taxable event concerning a Participant arising
as a result of this Plan. The Committee may in its discretion and in
satisfaction of the foregoing requirement allow a Participant to elect to have
the Company

                                       16

<PAGE>

withhold shares of Stock otherwise issuable under an Award (or allow the return
of shares of Stock) having a Fair Market Value equal to the minimum sums
required to be withheld. Notwithstanding any other provision of the Plan, the
number of shares of Stock which may be withheld with respect to the issuance,
vesting, exercise or payment of any Award (or which may be repurchased from the
Participant of such Award within six months after such shares of Stock were
acquired by the Participant from the Company) in order to satisfy the
Participant's federal, state, local and foreign income and payroll tax
liabilities with respect to the issuance, vesting, exercise or payment of the
Award shall be limited to the number of shares which have a Fair Market Value on
the date of withholding or repurchase equal to the aggregate amount of such
liabilities based on the minimum statutory withholding rates for federal, state,
local and foreign income tax and payroll tax purposes that are applicable to
such supplemental taxable income.

         12.4 No Right to Employment or Services. Nothing in the Plan or any
              ----------------------------------
Award Agreement shall interfere with or limit in any way the right of the
Company or any Subsidiary to terminate any Participant's employment or services
at any time, nor confer upon any Participant any right to continue in the employ
or service of the Company or any Subsidiary.

         12.5 Unfunded Status of Awards. The Plan is intended to be an
              -------------------------
"unfunded" plan for incentive compensation. With respect to any payments not yet
made to a Participant pursuant to an Award, nothing contained in the Plan or any
Award Agreement shall give the Participant any rights that are greater than
those of a general creditor of the Company or any Subsidiary.

         12.6 Indemnification. To the extent allowable pursuant to applicable
              ---------------
law, each member of the Committee or of the Board shall be indemnified and held
harmless by the Company from any loss, cost, liability, or expense that may be
imposed upon or reasonably incurred by such member in connection with or
resulting from any claim, action, suit, or proceeding to which he or she may be
a party or in which he or she may be involved by reason of any action or failure
to act pursuant to the Plan and against and from any and all amounts paid by him
or her in satisfaction of judgment in such action, suit, or proceeding against
him or her; provided he or she gives the Company an opportunity, at its own
expense, to handle and defend the same before he or she undertakes to handle and
defend it on his or her own behalf. The foregoing right of indemnification shall
not be exclusive of any other rights of indemnification to which such persons
may be entitled pursuant to the Company's Certificate of Incorporation or
Bylaws, as a matter of law, or otherwise, or any power that the Company may have
to indemnify them or hold them harmless.

         12.7 Relationship to other Benefits. No payment pursuant to the Plan
              ------------------------------
shall be taken into account in determining any benefits pursuant to any pension,
retirement, savings, profit sharing, group insurance, welfare or other benefit
plan of the Company or any Subsidiary except to the extent otherwise expressly
provided in writing in such other plan or an agreement thereunder.

         12.8 Expenses. The expenses of administering the Plan shall be borne by
              --------
the Company and its Subsidiaries.

         12.9 Titles and Headings. The titles and headings of the Sections in
              -------------------
the Plan are for convenience of reference only and, in the event of any
conflict, the text of the Plan, rather than

                                       17

<PAGE>

such titles or headings, shall control.

         12.10 Fractional Shares. No fractional shares of Stock shall be issued
               -----------------
and the Committee shall determine, in its discretion, whether cash shall be
given in lieu of fractional shares or whether such fractional shares shall be
eliminated by rounding up or down as appropriate.

         12.11 Limitations Applicable to Section 16 Persons. Notwithstanding any
               --------------------------------------------
other provision of the Plan, the Plan, and any Award granted or awarded to any
Participant who is then subject to Section 16 of the Exchange Act, shall be
subject to any additional limitations set forth in any applicable exemptive rule
under Section 16 of the Exchange Act (including any amendment to Rule 16b-3 of
the Exchange Act) that are requirements for the application of such exemptive
rule. To the extent permitted by applicable law, the Plan and Awards granted or
awarded hereunder shall be deemed amended to the extent necessary to conform to
such applicable exemptive rule.

         12.12 Government and Other Regulations. The obligation of the Company
               --------------------------------
to make payment of awards in Stock or otherwise shall be subject to all
applicable laws, rules, and regulations, and to such approvals by government
agencies as may be required. The Company shall be under no obligation to
register pursuant to the Securities Act any of the shares of Stock paid pursuant
to the Plan. If the shares paid pursuant to the Plan may in certain
circumstances be exempt from registration pursuant to the Securities Act, the
Company may restrict the transfer of such shares in such manner as it deems
advisable to ensure the availability of any such exemption.

         12.13 Governing Law. The Plan and all Award Agreements shall be
               -------------
construed in accordance with and governed by the laws of the State of Delaware.

                                       18Exhibit 10.7

 EXHIBIT 10.7 
  
 THIS LEASE, made this      day of
                    , 2004 by and between MERRITT-DM1, LLC, hereinafter called “Landlord,” and AVATECH SOLUTIONS, hereinafter called
“Tenant.” 
  
 WITNESSETH, that in consideration of the
rental hereinafter agreed upon and the performance of all the conditions and covenants hereinafter set forth on the part of the Tenant to be performed, the Landlord does hereby lease unto the said Tenant, and the latter does lease from the former
the following premises (hereinafter sometimes called the “premises”): 
  
 BEING those premises containing approximately 13,430 square feet and outlined in red on the Plat attached hereto as Exhibit A, said
premises being located within the building known as 10715 Red Run Boulevard, Suites 101-103, Owings Mills, MD 21117; 
  
 for the term of eighty-six (86) months, beginning on the first day of June, 2004, and ending on the last day of July 31, 2011, at and for the following rentals:

  

							
	Term:

	 	Annual Rate:

	 	Monthly Rate:

	 	Per Sq. Ft.:

	6/1/04 – 7/31/04	 	N/A	 	-0-	 	-0-
	8/1/04 – 7/31/05	 	$201,450.00	 	$16,787.50	 	$15.00
	8/1/05 – 7/31/06	 	$207,493.50	 	$17,291.13	 	$15.45
	8/1/06 – 7/31/07	 	$213,671.30	 	$17,805.94	 	$15.91
	8/1/07 – 7/31/08	 	$220,117.70	 	$18,343.14	 	$16.39
	8/1/08 – 7/31/09	 	$226,698.40	 	$18,891.53	 	$16.88
	8/1/09 – 7/31/10	 	$233,547.70	 	$19,462.31	 	$17.39
	8/1/10 – 7/31/11	 	$240,531.30	 	$20,044.28	 	$17.91

  
 Notwithstanding the above, Tenant
shall be responsible for any additional charges as described in this Lease as of the commencement date. 
  
 (a) As used herein, the “First Rental Year” shall mean the period from the commencement of the Lease term to the end of the twelfth (12th) full
calendar month thereafter; subsequent Lease years shall commence on the first (1st) day of the next month of the Lease term and on each anniversary thereafter. Tenant covenants and agrees to pay all rentals reserved hereunder to Landlord, without
notice or demand, in advance, on the first (1st) day of each month during the term of this Lease, without setoff or deduction. The rental for any fractional monthly periods at the beginning or at the end of each Lease year shall be prorated on a per
diem basis and shall be payable on the date upon which the Lease term commences, and on the first (1st) day of the last partial month of the Lease term, respectively. Tenant covenants and agrees that it will not prepay any rent more than one (1)
month in advance without Landlord’s prior written consent. 
  

 E-3 

 (b) All rentals shall be paid to MERRITT PROPERTIES, LLC at 2066 Lord Baltimore Drive, Baltimore,
Maryland 21244, or at such other place or to such appointee of the Landlord as the Landlord may from time to time designate in writing. 
  
 This Lease is made subject to the following additional terms, covenants and conditions: 
  
 1. Payment of Rental. 
  
 Tenant covenants and agrees to pay the rental herein reserved and each installment thereof promptly when and as due, without setoff or deduction whatsoever. Tenant
further agrees that it will not prepay rent more than one (1) month in advance without Landlord’s prior written consent. 
  
 2. Use. 
  
 (a) Tenant covenants and agrees to use and occupy the premises solely for the following purposes: 
  
 GENERAL OFFICE/WAREHOUSE USE 
  
 Tenant agrees to comply with all applicable zoning and other laws and regulations, and
provide and install at its own expense any additional equipment or alterations required to comply with all such laws and regulations as required from time to time. Tenant will not permit, allow or cause any public or private auction sales or
sheriffs’ or constables’ sales to be conducted on or from the premises. Tenant further covenants and agrees (i) to use the premises in a manner which does not interfere with the rights of quiet enjoyment of any other tenants of the
building and which is not a nuisance, (ii) to maintain all mechanical equipment and sound producing or reproducing equipment within the premises in good working order free from vibration or noise which may interfere with the quiet enjoyment of other
tenants of the building, and (iii) not to make any objectionable use of the premises to generate any objectionable odor therefrom. 
  
 (b) Tenant shall in no event exceed a maximum premises population of four (4) persons per one thousand (1,000) square feet of Total Rentable Area.

  
 3. Utilities. 
  
 (a) Tenant agrees to pay as additional rent Tenant’s pro rata share of
the water rent and sewer service charges chargeable to the total building in which the premises are located, based upon the number of tenants occupying the same, and not based upon the size of the premises in proportion to the total square footage
of the building, which sum shall be due within fifteen (15) days after Landlord’s written demand. However, if in Landlord’s sole judgment, the water and sewer charges for the premises are substantially higher than normal due to
Tenant’s water usage, then Tenant agrees that it will, upon written notice from Landlord, install a water meter at Tenant’s expense and thereafter pay all water charges for the premises based on such meter readings. 
  
 (b) Tenant shall also pay all costs of electricity, gas, telephone and other
utilities used or consumed on the premises, together with all taxes, levies or other charges on such utilities. If Tenant defaults in payment of any such utilities, charges or taxes, Landlord may, at its option, pay the same for and on Tenant’s
account, in which event Tenant shall promptly reimburse Landlord therefor. 
  

 E-4 

 (c) In addition, Tenant shall pay, as additional rent, 11.87% (being the same percentage which the square
foot floor area of the premises bears to the entire leasable area of the building) of Landlord’s costs of public service electric usage, including usage for lighting the parking and other common areas, which sum shall be due within fifteen (15)
days after Landlord’s demand. 
  
 4. Compliance with Laws.

  
 (a) Tenant covenants and agrees that it will, at its own
expense, observe, comply with and execute all laws, orders, rules, requirements and regulations of any and all governmental departments, bodies, bureaus, agencies and officers, and all rules, directions, requirements and recommendations of the local
board of fire underwriters and the fire insurance rating organizations having jurisdiction over the area in which the premises are situated, or other bodies or agencies now or hereafter exercising similar functions in the area in which the premises
are situated (collectively “Laws”), in any way pertaining to the premises or the use and occupancy thereof. In the event Tenant shall fail or neglect to comply with any of the Laws, Landlord or its agents may enter the premises and take
all such action and do all such work in or to the premises as may be necessary in order to cause compliance with such laws, orders, rules, requirements or recommendations, and Tenant covenants and agrees to reimburse Landlord promptly upon demand
for the expense incurred by Landlord in taking such action and performing such work. 
  
 (b) Without limiting the generality of paragraph (a) hereof, Tenant shall at all times keep the premises in compliance with the Americans With Disabilities Act and its supporting regulations, and all similar Laws. If
Landlord’s consent would be required for alterations to bring the Premises into compliance, Landlord agrees not to unreasonably withhold its consent. 
  
 5. Assignment and Subletting. 
  
 (a) Tenant covenants and agrees not to assign this Lease, in whole or in part, nor sublet the premises, or any part or portion thereof, nor grant any
license or concession for all or any part thereof, without the prior written consent of the Landlord in each instance first had and obtained. If such assignment or subletting is permitted, Tenant shall not be relieved from any liability whatsoever
under this Lease. In the event that the amount of the rent or other consideration to be paid to the Tenant by any assignee or sublessee is greater than the rent required to be paid by the Tenant to the Landlord pursuant to this Lease, Tenant shall
pay to Landlord any such excess as is received by Tenant from such assignee or sublessee. Any consent by Landlord to an assignment or subletting of this Lease shall not constitute a waiver of the necessity of such consent as to any subsequent
assignment or subletting. An assignment for the benefit of Tenant’s creditors or otherwise by operation of law shall not be effective to transfer or assign Tenant’s interest under this Lease unless Landlord shall have first consented
thereto in writing. 
  
 (b) In the event this Lease contains a
renewal option exercisable by Tenant, Landlord’s consent to an assignment or sublease of the premises or any portion thereof during the original Lease term shall be deemed to be conditioned upon the agreement of Tenant and such assignee or
sublessee that such renewal right or option shall terminate and be of no further force or effect unless Landlord’s consent to such assignment or sublease expressly provided otherwise. 
  

 E-5 

 Consequently, unless so provided otherwise, any assignment or sublease during the original Lease term shall automatically
constitute a termination of the right of Tenant or such assignee or sublessee to exercise any renewal option contained herein. 
  
 (c) In the event Tenant desires to assign this Lease or to sublease all or any substantial portion of the premises, Landlord shall have the right and
option to terminate this Lease, which right or option shall be exercisable by written notice from Landlord to Tenant within thirty (30) days from the date Tenant gives Landlord written notice of its desire to assign or sublease. 
  
 6. Loading Capacity. 
  
 Tenant covenants and agrees not to load the premises beyond its present carrying or loading
capacity. 
  
 7. Increase in Landlord’s Insurance Rates.

  
 Tenant will not do, or suffer to be done, anything in or about the premises,
or keep or suffer to be kept, anything in or about the premises which will contravene or affect any policy of insurance against loss by fire or other hazards, including, but not limited to, public liability, now existing or which the Landlord may
hereafter place thereon, or which will prevent the Landlord from procuring such policies in companies acceptable to Landlord at standard rates. Tenant will, at Tenant’s sole expense, take all such actions and make any installations or
alterations as may be necessary to obtain a reasonable reduction in the insurance rates for the premises and the building in which the premises are located (or, if the premises are a part of a building, any increase in the premium of any insurance
on said entire building) caused by the occupancy of Tenant, the nature of the business carried on by Tenant in the premises, or otherwise resulting from any act of Tenant, its agents, servants, employees or customers, or anything done or suffered to
be done by Tenant, its agents, servants, employees or customers. 
  
 8. Insurance - Indemnity. 
  
 (a) Tenant covenants and
agrees that from and after the earlier of the commencement of this Lease or the date of delivery of the premises from Landlord to Tenant, Tenant will carry and maintain, at its sole cost and expense and in the amounts specified and in the form
hereinafter provided, the following types of insurance: 
  
 (i) Commercial General Liability. Commercial general liability insurance covering the premises and Tenant’s use thereof against claims for bodily injury or death and property damage occurring upon, in or
about the premises, such insurance to afford protection to the limit of not less than two million dollars ($2,000,000) arising out of any one occurrence. The insurance coverage required under this Section 8(a)(i) shall, in addition, extend to any
liability of Tenant arising out of Tenant’s indemnities hereinafter provided, as well as Independent Contractors’ Liability, Products/Completed Operations Liability, Personal Injury Liability and Contractual Liability. If such insurance
contains an annual aggregate limit, the annual aggregate limit may not be diminished by claims occurring at locations other than the premises. 
  
 Boilers. If Tenant’s premises shall contain a boiler or other pressure vessel, Tenant shall carry Boiler and Machinery
Insurance with a direct damage limit not less than the full value of the building in which Tenant’s premises are situated. Such insurance shall be written on a “repair and replacement” (replacement cost) basis. 
  

 E-6 

 Tenant Improvements and Property. Insurance covering all leasehold improvements,
and other improvements installed by Tenant upon the premises, trade fixtures and personal property from time to time in, on or upon the premises and any alterations, improvements, additions or changes made by Tenant thereto in an amount not less
than one hundred percent (100%) of their full replacement cost from time to time during the Lease term, providing protection against special causes of loss as defined within the property insurance form promulgated by the Insurance Services Office,
Inc. Such insurance shall be on an agreed value (no coinsurance) basis and shall have a deductible of not more than one thousand dollars ($1,000.00). Any policy proceeds from such insurance, so long as this Lease shall remain in effect, shall be
held in trust by Tenant’s insurance company first for the repair, reconstruction, restoration or replacement of any covered property in which Landlord has an insurable interest, before they are used for any other purpose. 
  
 (ii) Plate Glass. Plate glass insurance covering all
plate glass in the premises. Tenant shall be and remain liable for the repair and restoration of all such plate glass. 
  
 (iii) Worker’s Compensation. Worker’s compensation insurance covering Tenant’s employees for statutory benefits
payable in the state in which the premises are located and including employer’s liability insurance with limits of not less than one hundred thousand dollars ($100,000.00) per accident, one hundred thousand dollars ($100,000.00) per employee
for disease and five hundred thousand dollars ($500,000.00) as a policy limit for disease. 
  
 (b) All policies of insurance to be provided by Tenant shall be issued in form acceptable to Landlord by insurance companies with general policyholder’s rating of not less than A: XI as rated in the most current
available “Best’s” Insurance Reports, and qualified to do business in the state in which the premises are located. Other than worker’s compensation, each such policy shall be issued in the names of Landlord and Tenant and shall
be for the mutual and joint benefit and protection of each of said parties. Executed copies of each such policy of insurance or a certificate thereof shall be delivered to Landlord within ten (10) days after the earlier of the commencement of this
Lease or delivery of possession of the premises to Tenant and thereafter at least fifteen (15) days prior to the expiration of each such policy. As often as any such policy shall expire or terminate, renewal or additional policies shall be procured
and maintained by Tenant in like manner and to like extent. All such policies of insurance shall contain a provision that the company writing said policy will give to Landlord at least thirty (30) days’ notice in writing in advance of any
cancellations, or lapse, or the effective date of any reduction in the amounts of insurance. In the event Tenant shall fail to promptly furnish any insurance herein required, Landlord may effect the same and Tenant shall promptly reimburse Landlord
upon demand, as additional rent, the premium so paid by Landlord. If, upon Tenant’s failure, rather than purchase separate insurance coverage, Landlord chooses to include Tenant’s coverage under Landlord’s insurance policies, then
Tenant shall promptly reimburse Landlord upon demand, as additional rent, the greater of the increase in Landlord’s premium resulting therefrom or One Thousand Dollars ($1,000.00). All such public liability, property damage and other casualty
policies shall be written 
  

 E-7 

 as primary policies which do not contribute to and are not in excess of coverage which Landlord may carry. All such
public liability and property damage policies shall contain a provision that Landlord shall nevertheless be entitled to recover under said policies for any loss occasioned to it, its servants, agents and employees by reason of the negligence of
Tenant or any other named insured. Any insurance provided for may be affected by a policy or policies of blanket insurance, covering additional items or locations; provided, however, that (i) Landlord shall be named as an additional insured
thereunder as its interests may appear; (ii) the coverage afforded Landlord will not be reduced or diminished by reason of the use of such blanket policy of insurance; (iii) any such policy or policies (except any covering the risks referred to in
paragraph [i]), shall specify therein (or Tenant shall furnish Landlord with a written statement from the insurers under such policy specifying) the amount of the total insurance allocated to the “Tenant Improvements and Property” more
specifically detailed in paragraph (iii), above; and (iv) the requirements set forth herein are otherwise satisfied. Any insurance policies herein required to be procured by Tenant shall contain an express waiver of any right of subrogation by the
insurance company against the Landlord, and all other tenants or occupants of space in the building. 
  
 (c) Tenant shall, and does hereby, indemnify and hold harmless Landlord and any other parties in interest set forth in paragraph (b), above, from and
against any and all liabilities, fines, claims, damages and actions, costs and expenses of any kind or nature (including attorneys’ fees) and of anyone whatsoever (i) relating to or arising from the use and occupancy of the premises; (ii) due
to or arising out of any mechanic’s lien filed against the building, or any part thereof, for labor performed or for materials furnished or claimed to be furnished to Tenant, or (iii) due to or arising out of any breach, violation or
nonperformance of any covenant, condition or agreement in this Lease set forth and contained on the part of Tenant to be fulfilled, kept, observed or performed, unless such damage or injury shall be occasioned by the negligence or willful act or
omission of the Landlord, in which event, Landlord shall indemnify and hold harmless Tenant to the extent of such negligence or willful act or omission. Notwithstanding the foregoing, Tenant shall at all times remain liable for, and indemnify and
hold harmless Landlord as aforesaid against, any damage or injury arising from perils against which Tenant is required by this Lease to insure, regardless of the negligence or willful act or omissions of others. 
  
 9. Alterations. 
  
 Tenant shall not make any alterations to the premises, or any part thereof, without prior
written consent of Landlord in each instance first had and obtained. If Tenant shall desire to make such alterations, plans for the same shall first be submitted to and approved by Landlord, and all work and installations shall be performed by
Tenant at its own expense in accordance with approved plans. Tenant agrees that all such work shall be done in a good and workmanlike manner, that the structural integrity of the building shall not be impaired, and that no liens shall attach to the
premises by reason thereof. Tenant agrees to obtain, at Tenant’s expense, all permits required for such alterations. 
  
 10. Ownership of Alterations. 
  
 Unless Landlord shall elect in writing, at the time Landlord consents to any alteration pursuant to Section 9, that all or part of any such alteration made by Tenant
shall remain on the premises after the termination of this Lease, the premises shall be restored to their original condition by Tenant 
  

 E-8 

 before the expiration of this Lease at Tenant’s sole expense. Upon such election by Landlord, any such alterations,
improvements, betterments or mechanical equipment, including but not limited to, heating and air conditioning systems, shall become the property of Landlord as soon as they are affixed to the premises, and all right, title and interest thereof of
Tenant shall immediately cease. Tenant shall promptly pay any franchise, minor privilege or other tax or assessment resulting directly or indirectly from any alterations or improvements made by Tenant to the premises. Tenant shall repair promptly,
at its own expense, any damage to the premises caused by bringing into the premises any property for Tenant’s use, or by the installation or removal of such property, regardless of fault or by whom such damage shall be caused. 
  
 11. Repairs and Maintenance. 
  
 (a) Except as provided in Exhibit B hereto, the premises are leased to
Tenant “as is,” and except as herein expressly provided, Landlord shall be under no liability, nor have any obligation to do any work or make any repairs in or to the premises, and any work which may be necessary to outfit the premises for
Tenant’s occupancy or for the operation of Tenant’s business therein is the sole responsibility of Tenant and shall be performed by Tenant at its own cost and expense. Tenant acknowledges that it has fully inspected the premises prior to
the execution of this Lease, and Tenant further acknowledges that Landlord has made no warranties or representations with respect to the condition or state of repairs of the premises. 
  
 (b) Tenant will, during the term of this Lease, keep the premises and appurtenances (including windows, doors, plumbing,
heating and electrical facilities and installations) in good order and repair and will make all necessary repairs thereof at its own expense, except that Landlord will make all necessary repairs (except painting) to the exterior masonry walls and
roof of the premises, after being notified in writing by Tenant of the need for such repairs, and shall have a reasonable time in which to complete such repairs. Tenant agrees to carry, throughout the term of this Lease and any renewal or extensions
hereof, a maintenance and/or service agreement or policy on the HVAC system in the demised premises. Tenant shall provide Landlord with a copy of such policy or a certificate evidencing such coverage, prior to the commencement of the Lease term. In
the event that the repairs required to be made by Landlord are necessitated as a result of negligence or misuse by Tenant, its agents, servants, employees, licensees or guests, or by any contractor engaged by or on behalf of Tenant, such repairs
shall be made by and be paid for by Tenant. Tenant shall also maintain any driveways, parking or fenced in areas designated for its exclusive use. Tenant agrees to pay as additional rent Tenant’s pro-rata share of snow and ice removal expense,
based upon the size of the premises in proportion to the total square footage of the park in which the premises are located. Tenant will, at the expiration of the term or at the sooner termination thereof by forfeiture or otherwise, deliver up the
premises in the same good order and condition as they were at the beginning of tenancy, reasonable wear and tear excepted. Tenant further agrees that it will maintain the premises at its own expense in a clean, orderly and sanitary condition, free
of insects, rodents, vermin, and other pests; and that it will not permit undue accumulation of garbage, trash, rubbish or other refuse, but will remove the same at its own expense and will keep such refuse in proper containers within the interior
of the premises until called for to be removed. Tenant further agrees that it will not install any additional electrical wiring or plumbing unless it has first obtained Landlord’s written consent thereto, and, if such consent is given, Tenant
will install the same at its own cost and expense, and Tenant shall obtain, at Tenant’s expense, all permits required for such installation. 
  

 E-9 

 (c) In the event Tenant shall not proceed promptly and diligently to make any repairs or perform any
obligation imposed upon it by subparagraphs (a) and (b) hereof within forty-eight (48) hours after receiving written notice from Landlord to make such repairs or perform such obligation, then and in such event, Landlord may, at its option, enter the
premises and do and per- form the things specified in said notice, without liability on the part of Landlord for any loss or damage resulting from any such action by Landlord, and Tenant agrees to pay promptly upon demand any cost or expense
incurred by Landlord in taking such action. 
  
 12. Tax and
Insurance Escalation. 
  
 (a) The premises hereby leased comprise
approximately eleven and eighty-seven hundredths percent (11.87%) of the total land and/or building(s) within which the premises are located. 
  
 (b) Tenant covenants and agrees to pay Landlord, as additional rent, eleven and eighty-seven hundredths percent (11.87%) of any increase in real estate
taxes assessed against the land and/or building(s) in excess of the taxes for the 2003/2004 fiscal year whether as a result of an increase in the assessment or tax rate, or the levy, assessment or imposition of any tax on real estate as such not now
levied, assessed or imposed, which payment shall be due and payable within fifteen (15) days after Landlord’s written demand. The foregoing shall apply to increases in real estate taxes assessed against the land or building(s) generally, and
not resulting from improvements placed thereon by Tenant. In the event of any increases in real estate taxes resulting from improvements, alterations or additions made by Tenant, Tenant shall pay the entire amount of said increase. If this Lease
shall be in effect for less than a full fiscal year, Tenant shall pay a pro rata share of taxes, based upon the number of months that this Lease is in effect. “Taxes” as used herein shall include, but not by way of limitation, all paving
taxes, special paving taxes, Metropolitan District charges, and any and all other benefits or assessments which may be levied on the premises or the land or building(s) in which the same are situate (including any Owner’s or Community
Association to which to land is subject), but shall not include any income tax on the income or rent payable hereunder. “Taxes” shall also include all reasonable expenses incurred by Landlord (including attorneys’ fees and costs) in
contesting any increase in, or applying for any reduction of, a tax assessment. 
  
 (c) Tenant also covenants and agrees to pay Landlord, as additional rent, eleven and eighty-seven hundredths percent (11.87%) of any increase in insurance premiums (as hereinafter defined) in excess of the annualized
premiums for the most recent policy period prior to the commencement of this lease, which payment shall be due and payable within fifteen (15) days after Landlord’s written demand. As used herein, “insurance premiums” means the total
premium cost of all insurance carried by Landlord with respect to the total land and building(s) within which the premises are located, including, but not limited to, all Real Property and Rental Value perils insured against under an “All
Risk” insuring agreement, primary General Liability insurance and Umbrella and/or Excess Liability insurance. 
  

 E-10 

 13. Default. 
  
 (a) Any of the following events shall constitute a default by Tenant: 
  
 (i) If the rent (basic or additional) shall be in arrears, in whole or in part; or 
  
 (ii) If Tenant shall have failed to perform any other term,
condition, or covenant of this Lease on its part to be performed for a period of ten (10) days after notice of such failure from Landlord; or 
  
 (iii) If the premises are vacant, unoccupied or deserted for a period of fifteen (15) days or more at any time during the term; or

  
 (iv) If Tenant is adjudicated a bankrupt or
insolvent by any court of competent jurisdiction, or if any such court enters an order, judgment or decree finally approving any petition against Tenant seeking reorganization, liquidation, dissolution or similar relief or if a receiver, trustee,
liquidator or conservator is appointed for all or substantially all of Tenant’s assets and such appointment is not vacated within ten (10) days after the appointment, or if Tenant seeks or consents to any of the relief hereinabove enumerated in
this subparagraph (iv) or files a voluntary petition in bankruptcy or insolvency or makes an assignment of all or substantially all of its assets for the benefit of creditors or admits in writing of its inability to pay its debts generally as they
come due or files Articles of Dissolution, or similar writing indicating its intention to wind up or liquidate its business, with the appropriate authority of the place of its incorporation; or 
  
 (v) If Tenant’s leasehold interest under this Lease is
sold under execution, attachment or decree of court to satisfy any debt of Tenant, or if any lien (including a mechanic’s lien) is filed against Tenant’s leasehold interest and is not discharged within ten (10) days thereafter. 

 
 (b) Upon the happening of an Event of Default as defined in paragraph (a)
hereof, Landlord, in addition to any and all legal and equitable remedies it may have, shall have the following remedies: 
  
 (i) To distrain for any rent or additional rent in default; and 
  
 (ii) At any time after default, without notice, to declare this Lease terminated and enter the premises with
or without legal process; and in such event Landlord shall have the benefit of all provisions of law now or hereafter in force respecting the speedy recovery of possession from Tenant’s holding over or proceedings in forcible entry and
detainer, and Tenant waives any and all provisions for notice under such laws. 
  
 Notwithstanding such reentry and/or termination, Tenant shall immediately be liable to Landlord for the sum of the following: (a) all rent and additional rent then in arrears, without apportionment to the termination
date; (b) all other liabilities of Tenant and damages sustained by Landlord as a result of such Event of Default, including, but not limited to, the reasonable costs of reletting the premises and any broker’s commissions payable as a result
thereof; (c) all of Landlord’s costs and expenses (including reasonable counsel fees) in connection with such default and recovery of possession; (d) the difference between the rent reserved under this Lease for the balance of the term and the
fair rental value of the premises for the balance of the term to be determined as of the date of reentry; or at Landlord’s option in lieu thereof, Tenant shall pay the amount of the rent and additional rent reserved under this Lease at the
times herein stipulated for payment of rent and additional rent for the balance of the term, less any amount received by Landlord during such period from others to whom the premises may be rented on such terms and conditions and at such rentals as
Landlord, in its sole discretion, shall deem proper; and (e) any other damages recoverable by law. If Tenant commits an Event of Default, Tenant shall pay to Landlord all costs and expenses incurred by Landlord as a result thereof, including a
reasonable attorney’s fee. 
  

 E-11 

 (c) In the event Tenant fails to pay Landlord any rental payment or other charge due hereunder on the
date due, Tenant shall pay a late charge equal to fifteen percent (15%) of the rental payment or other such charge, which late charge shall be collectible as additional rent and shall be payable by Tenant to Landlord within ten (10) days after
written notice from Landlord to Tenant assessing the same. In addition, any such rental payment or other charge which is delinquent for five (5) days or more, shall bear interest from the date on which same was due at the prime rate of interest then
being charged by M & T Bank (the “Default Rate”). 
  
 14. Damage or Destruction. 
  
 (a) If, during the Lease
term, the premises hereby leased are damaged by fire or other casualty, but not to the extent that Tenant is prevented from carrying on business in the premises, Landlord shall promptly cause such damage to be repaired; if such damage renders a
substantial portion of the premises untenantable, the rent reserved hereunder (except Tenant’s share of any charges for water) shall be reduced during the period of its untenantability proportionately to the amount by which the area so rendered
untenantable bears to the entire area leased hereunder, and such reduction shall be apportioned from the date of the casualty to the date when the leased premises are rendered fully tenantable. Notwithstanding the foregoing, in the event such fire
or other casualty damages or destroys any of Tenant’s leasehold improvements, alterations, betterments, fixtures or equipment, Tenant shall cause the same to be repaired or restored at Tenant’s sole cost and expense and Landlord shall have
no liability for the restoration or repair thereof. 
  
 (b) If,
during the Lease term, the premises or a substantial portion of the building in which the premises is situated are rendered wholly untenantable as the result of fire, the elements, unavoidable accident or other casualty, Landlord shall have the
option either to restore the premises to their condition immediately prior to the casualty or to terminate this Lease, such option shall be exercised by Landlord by written notice to Tenant within thirty (30) days after the fire, accident or
casualty. In the event of such termination, the rent reserved hereunder shall be adjusted as of the date of the fire, accident or casualty. If Landlord elects to restore the premises, such restoration shall be completed as promptly as reasonably
possible and the rent reserved hereunder shall abate until the premises are again rendered tenantable. 
  
 15. Possession. 
  
 In case possession of the premises, in whole or in part, cannot be given to Tenant on or before the commencement of the term of this Lease, Landlord agrees to abate the
rent proportionately until possession is given to Tenant, and Tenant agrees to accept such pro rata abatement as liquidated damages for the failure to obtain possession on the commencement date herein specified. The parties hereto covenant and agree
that if the term of this Lease commences on a date other than the date herein specified, they will, upon the request of either of them, execute an agreement in recordable form setting forth the new commencement and termination dates of the Lease
term. Under no circumstances shall Landlord be under any liability for failure to deliver possession of the premises to Tenant on the date herein specified. 
  

 E-12 

 16. Exterior of Premises - Signs.  
  
 (a) Tenant covenants and agrees that it will not place or permit any sign, billboard, marquee, lights, awning, poles,
placard, advertising matter, or other thing of any kind (collectively “Sign”), in or about the exterior of the premises or the building in which the premises are situate, nor paint or make any change in, to or on the exterior of said
premises to change the uniform architecture, paint or appearance of the building, without in each such instance obtaining the prior written consent of Landlord. In the event such consent is given, Tenant agrees to pay any minor privilege or other
tax arising as a result of any such installation immediately when due. Tenant shall obtain, at Tenant’s expense, all permits required for such installation. Tenant further agrees to maintain any Sign as may be approved by Landlord in good
condition and repair at all times. 
  
 (b) Tenant further
covenants and agrees not to pile or place anything on the sidewalk, parking lot or other exterior portion of the premises or building or in the front, rear or sides of the building, nor block the sidewalk, parking lot or other exterior portion of
the premises or building, nor do anything that directly or indirectly will interfere with any of the rights of ingress or egress or of light from any other tenant, nor do anything which will, in any way, change the uniform and general design of any
property of Landlord in which the premises are situate. In the event this Lease covers all or substantially all of an entire building, Tenant agrees to keep all sidewalks, steps and porches free and clear of ice, snow and debris. 
  
 17. Relocation. 
  
 Landlord reserves the right at its option and at Landlord’s sole cost and expense
(including all moving expenses of Tenant) to relocate the premises hereby leased to another area within the building or group of buildings in which the premises hereby leased is located provided such new location shall be comparable to the premises
hereby leased or to comparable space in another location and provided Landlord gives Tenant thirty (30) days prior written notice of such relocation. 
  
 18. For Rent/Sale Signs. 
  
 Landlord shall have the right to place a “For Rent” sign on any portion of said premises for six (6) months prior to termination of this Lease and to place a
“For Sale” sign thereon at any time. During such six-month period, Landlord may show the premises and all parts thereof to prospective tenants between the hours of 9:00 a.m. and 5:00 p.m. on any day except Sunday or any legal holiday on
which Tenant shall not be open for business. 
  
 19. Water and
Other Damage. 
  
 Landlord shall not be liable for, and Landlord is hereby
released and relieved from, all claims and demands of any kind by reason of or resulting from damage or injury to person or property of Tenant or any other party, directly or indirectly caused by (a) dampness, water, rain or snow, in any part of the
premises or in any part of any other property of Landlord or of others, and/or (b) falling plaster, steam, gas, electricity, or any leak or break in any part of the premises or from any pipes, appliances or plumbing or from sewers or the street or
subsurface or from any other place or any part of any other property of Landlord or of others or in the pipes of the plumbing or heating facilities thereof, no matter how caused. 
  

 E-13 

 20. Right of Entry. 
  
 Landlord and its agents, servants, employees, including any builder or contractor employed by Landlord, shall have the absolute and
unconditional right, license and permission, at any and all reasonable times, to enter and inspect the premises or any part thereof, and at the option of Landlord, to make such reasonable repairs and/or changes in the premises as Landlord may deem
necessary or proper and/or to enforce and carry out any provision of this Lease. 
  
 21. Termination of Term. 
  
 (a)
It is agreed that the term of this Lease shall expire and terminate at the end of the original term hereof (or at the expiration of the last renewal term, if this Lease contains a renewal option and the same is properly exercised), without the
necessity of any notice by or to any of the parties hereto, unless otherwise provided herein. If Tenant shall occupy the premises after such expiration or termination, it is understood that Tenant shall hold the premises as a tenant from
month-to-month, subject to all the other terms and conditions of this Lease, at an amount equal to double the highest monthly rental installment reserved in this Lease. Landlord shall, upon such expiration or termination of this Lease, be entitled
to the benefit of all public general or local laws relating to the speedy recovery of possession of lands and tenements held over by Tenants that may be now in force or may hereafter be enacted. 
  
 (b) At the time Tenant surrenders the premises to Landlord, the premises
shall be in compliance with all applicable building code requirements insofar as such requirements relate to Tenant’s use and occupancy of the premises or to any installations, alterations or improvements made by Tenant thereto. 
  
 22. Condemnation. 
  
 (a) If, during the term of this Lease, all or a substantial part of the
premises shall be taken by or under power of eminent domain, this Lease shall terminate as of, and the rent (basic and additional) shall be apportioned to and abate from and after, the date of taking. Except as set forth in paragraph (d) below,
Tenant shall have no right to participate in any award or damages for such taking and hereby assigns all of its right, title and interest therein to Landlord. For the purposes of this paragraph, “a substantial part of the premises” shall
mean such part that the remainder thereof is rendered inadequate for Tenant’s business and that such remainder cannot practicably be repaired and improved so as to be rendered adequate to permit Tenant to carry on its business with
substantially the same efficiency as before the taking. 
  
 (b)
If, during the Lease term, less than a substantial part of the premises (as hereinabove defined) is taken by or under power of eminent domain, this Lease shall remain in full force and effect according to its terms; and except as set forth in
paragraph (d) below, Tenant shall not have the right to participate in any award or damages for such taking and Tenant hereby assigns all of its right, title and interest in and to the award to Landlord. In such event Landlord shall, at its expense,
promptly make such repairs and improvements as shall be necessary to make the remainder of the premises adequate to permit Tenant to carry on its business to substantially the same extent and with substantially the same efficiency as before the
taking; provided that in no 
  

 E-14 

 event shall Landlord be required to expend an amount in excess of the award received by Landlord for such taking. If, as
a result of such taking, any part of the premises is rendered permanently unusable, the basic annual rent reserved hereunder shall be reduced in such amount as may be fair and reasonable, which amount shall not exceed the proportion which the area
so taken or made unusable bears to the total area which was usable by Tenant prior to the taking. If the taking does not render any part of the premises unusable, there shall be no abatement of rent. 
  
 (c) For purposes of this section, “taking” shall include a
negotiated sale or lease and transfer of possession to a condemning authority under bona fide threat of condemnation for public use, and Landlord alone shall have the right to negotiate with the condemning authority and conduct and settle all
litigation connected with the condemnation. As hereinabove used, the words “award or damages” shall, in the event of such sale or settlement, include the purchase or settlement price. 
  
 (d) Nothing herein shall be deemed to prevent Tenant from claiming and
receiving from the condemning authority, if legally payable, compensation for the taking of Tenant’s own tangible property and such amount as may be payable by statute or ordinance toward Tenant’s removal and relocation expenses.

  
 23. Subordination. 
  
 Tenant covenants and agrees that all of Tenant’s rights hereunder are and shall be
subject and subordinate to the lien of any mortgage hereafter placed on the premises or any part thereof, except the Tenant’s personal property or trade fixtures, and to any and all renewals, modifications, consolidations, replacements,
extensions or substitutions of any first mortgage. Such subordination shall be automatic, without the execution of any further subordination agreement by Tenant. If, however, a written subordination agreement, consistent with this provision, is
required by a mortgagee, Tenant agrees to execute, acknowledge and deliver the same and in the event of failure so to do, Landlord may, in addition to any other remedies for breach of covenant hereunder, execute, acknowledge and deliver the same as
the agent or attorney in fact of Tenant, and Tenant hereby irrevocably constitutes Landlord its attorney-in-fact for such purpose. 
  
 24. Landlord’s Right to Perform Tenant’s Covenants. 
  
 If Tenant shall fail to perform any covenant or duty required of it by this Lease or by law, Landlord shall have the right (but not the obligation) to perform the same,
and if necessary to enter the premises for such purposes without notice. The reasonable cost thereof to Landlord shall be deemed to be additional rent hereunder payable by Tenant, and Landlord shall have the same rights and remedies with respect to
such additional rent as Landlord has with respect to the rental reserved hereunder. 
  
 25. Attornment. 
  
 (a) If
Landlord assigns this Lease or the rents hereunder to a creditor as security for a debt, Tenant shall, after written notice to Tenant of such assignment and upon demand by Landlord or the assignee, Tenant shall pay all sums thereafter becoming due
Tenant hereunder to such assignee. Tenant shall also, upon receipt of such notice, have all policies of insurance required hereunder endorsed so as to protect the assignee’s interest as it may appear and shall deliver such policies, or
certificates thereof, to the assignee. 
  

 E-15 

 (b) If, at any time during the term of this Lease, the Landlord of the leased premises shall be the
holder of a leasehold estate covering premises which include the leased premises, and if such leasehold shall terminate or be terminated for any reason, or if, at any time during the term of Lease a mortgage to which this Lease is subordinate shall
be foreclosed, Tenant agrees at the election and upon demand of any owner of the premises which include the leased premises, or of any mortgagee in possession thereof, or of any holder of a leasehold thereafter affecting premises which include the
leased premises, or of any purchaser at foreclosure, to attorn, from time to time, to any such owner, mortgagee, holder or purchaser upon the terms and conditions set forth herein for the remainder of the term demised in this Lease. Provided
however, that Tenant shall not be obligated to attorn unless, if Tenant shall so request in writing, such holder, owner, mortgagee or purchaser shall execute and deliver to Tenant an instrument wherein said holder, owner, mortgagee or purchaser
agrees that so long as Tenant performs all the terms, covenants and conditions of this Lease, on Tenant’s part to be performed, Tenant’s possession under the provisions of this Lease shall not be disturbed by such holder, owner, mortgagee
or purchaser. 
  
 (c) The foregoing provisions shall inure to the
benefit of any such owner, mortgagee, holder or purchaser and shall apply notwithstanding that this Lease may terminate upon the termination of any such leasehold estate or upon such foreclosure, and shall be self-operative upon any such demand,
without requiring any further instrument to give effect to such provisions. Tenant, however upon demand of any such owner, mortgagee, holder or purchaser, agrees to execute, from time to time an instrument in confirmation of the foregoing
provisions, satisfactory to any such owner, mortgagee, holder or purchaser, in which Tenant shall acknowledge such attornment and set forth herein and shall apply for the remainder of the term originally demised in this Lease. 
  
 26. Non-Waiver of Future Enforcement. 
  
 The receipt of rent by Landlord, with knowledge of any breach of this Lease by Tenant or of
any default on the part of Tenant in the observance or performance of any of the conditions or covenants of this Lease, shall not be deemed to be a waiver of any provisions of this Lease. No failure on the part of Landlord or of the Tenant to
enforce any covenant or provision herein contained nor any waiver of any right hereunder by Landlord or Tenant, shall discharge or invalidate such covenant or provision or affect the right of Landlord or Tenant to enforce the same in the event of
any subsequent default. The receipt by Landlord of any rent or any sum of money or any other consideration hereunder paid by Tenant after the termination, in any manner, of the term herein demised, or after the giving by Landlord of any notice
hereunder to effect such termination, shall not reinstate, continue or extend the term herein demised, or destroy, or in any manner impair the efficacy of any such notice of termination as may have been given hereunder by Landlord to Tenant prior to
the receipt of any such sum of money or other consideration, unless so agreed to in writing and signed by Landlord. Neither acceptance of the keys nor any other act or thing done by Landlord or any agent or employee during the term herein demised
shall be deemed to be an acceptance of a surrender of said premises, excepting only an agreement in writing signed by Landlord accepting or agreeing to accept such surrender. 
  

 E-16 

 27. Personal Property Taxes. 
  
 Tenant shall be responsible for and shall pay any taxes or assessments levied or assessed during the term of this Lease against any
leasehold interest of Tenant or personal property or trade fixtures of Tenant of any kind, owned by Tenant or placed in, upon or about the premises by Tenant. 
  

28. Recordation of Lease. 
  
 Tenant agrees that it will, upon Landlord’s request, execute a Memorandum of the Lease in a form suitable for recording under applicable Maryland law. The party
recording such Memorandum of Lease shall pay all costs of recordation, including transfer taxes and documentary stamp taxes thereon. 
  
 29. Notices.  
  
 Any notice required by this Lease shall be sent by certified mail or by a recognized overnight delivery service such as Federal Express with a receipt by addressee to
Landlord at: 2066 Lord Baltimore Drive, Baltimore, Maryland 21244. Any notice required by this Lease shall be sent by certified mail to Tenant at: 
  
 10715 Red Run Boulevard 
 Suites 101-103

 Owings Mills, MD 21117 
  
 if no other address specified, such notices to Tenant shall be addressed to the leased premises). Either party may, at any time, or from time to time, designate in
writing a substitute address for that above set forth, and thereafter all notices to such party shall be sent by certified mail to such substitute address. 
  
 30. Waiver of Jury Trial. 
  
 THE LANDLORD AND THE TENANT WAIVE ALL RIGHTS TO A TRIAL BY JURY IN ANY ACTION, COUNTERCLAIM, OR PROCEEDING BASED UPON, OR RELATED TO, THE SUBJECT MATTER
OF THIS LEASE. THIS WAIVER APPLIES TO ALL CLAIMS AGAINST ALL PARTIES TO SUCH ACTIONS AND PROCEEDINGS, INCLUDING PARTIES WHO ARE NOT PARTIES TO THIS LEASE. THIS WAIVER IS KNOWINGLY, INTENTIONALLY, AND VOLUNTARILY MADE BY THE TENANT AND THE TENANT
ACKNOWLEDGES THAT NEITHER THE LANDLORD, NOR ANY PERSON ACTING ON BEHALF OF THE LANDLORD, HAS MADE ANY REPRESENTATIONS OF FACT TO INDUCE THIS WAIVER OF TRIAL BY JURY OR IN ANY WAY TO MODIFY OR NULLIFY ITS EFFECT. THE TENANT FURTHER ACKNOWLEDGES THAT
IT HAS BEEN REPRESENTED (OR HAS HAD THE OPPORTUNITY TO BE REPRESENTED) IN THE SIGNING OF THIS LEASE AND IN THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL, SELECTED OF ITS OWN FREE WILL, IN THAT IT HAS HAD THE OPPORTUNITY TO DISCUSS THIS
WAIVER WITH COUNSEL. 
  

 E-17 

 31. Severability. 
  
 (a) It is agreed that, for the purpose of any suit brought or based on this Lease, this Lease shall be construed to be a
divisible contract, to the end that successive actions may be maintained thereon as successive periodic sums shall mature or be due hereunder, and it is further agreed that failure to include in any suit or action any sum or sums then matured or due
shall not be a bar to the maintenance of any suit or action for the recovery of said sum or sums so omitted; and Tenant agrees that it will not, in any suit or suits brought or arising under this Lease for a matured sum for which judgment has not
previously been obtained or entered, plead, rely on or interpose the defenses of res adjudicata, former recovery, extinguishment, merger, election of remedies or other similar defense as a default to said suit or suits. 
  
 (b) If any terms, clause or provision of this Lease is declared invalid by a
court of competent jurisdiction, the validity of the remainder of this Lease shall not be affected thereby but shall remain in full force and effect. 
  
 32. Successors and Assigns. 
  
 (a) Except as herein provided, this Lease and the covenants and conditions herein contained shall inure to the benefit of and be binding upon Tenant, its
successors and assigns, and shall inure to the benefit of Tenant and only such assignees of Tenant to whom an assignment by Tenant has been consented to in writing by Landlord. In the event more than one person, firm or corporation is named herein
as Tenant, the liability of all parties named herein as Tenant shall be joint and several. 
  
 (b) In the event Landlord’s interest under this Lease is transferred or assigned and written notice thereof is given to Tenant, the Landlord herein named (or any subsequent assignee or transferee of
Landlord’s interest under this Lease who gives such notice to Tenant) shall automatically be relieved and released from and after the date of such transfer or conveyance from all liability hereunder accruing after such transfer or assignment.
Further, Tenant specifically agrees to look solely to Landlord’s interest in the building for the recovery of any judgment from Landlord, it being agreed that Landlord shall never be personally liable for any such judgment. The provision
contained in the foregoing sentence is not intended to, and shall not, limit any right that Tenant might otherwise have to obtain injunctive relief against Landlord or Landlord’s successors in interest or any other action not involving the
personal liability of Landlord to respond in monetary damages from assets other than Landlord’s interest in the building or any suit or action in connection with enforcement or collection of amounts which may become owing or payable under or on
account of insurance maintained by Landlord. 
  
 33. Security
Deposit. 
  
 (a) Landlord hereby requires receipt from Tenant of
the sum of sixteen thousand seven hundred eighty-seven dollars and fifty cents ($16,787.50) which sum represents a security deposit for the faithful performance of Tenant’s obligations under this Lease. 
  
 (b) Tenant agrees that Landlord shall have the right, but not the obligation,
in its sole discretion and without notice to Tenant to apply said security deposit or any portion thereof to cure or remedy any default by Tenant hereunder, including default in payment of rent. If Landlord so applies the security deposit or any
portion thereof Tenant shall, upon demand, immediately 
  

 E-18 

 reimburse Landlord for the portion of the security deposit so applied; and any failure of Tenant to do so within five (5)
days after Landlord’s written demand therefor shall constitute an event of default hereunder. Said sum, if not sooner applied, shall be returned to Tenant, without interest, within thirty (30) days after vacating of the premises by Tenant and
termination of this Lease (or upon termination of the last renewal term of this Lease if this Lease contains a renewal and Tenant exercises said option); provided (i) Tenant is not then in default under any of the provisions of this Lease; (ii)
there is no damage to the portions of the premises to be repaired by Tenant hereunder, beyond ordinary wear and tear and the premises have been left in a clean condition and in good order with all debris, rubbish and trash placed in proper
containers; (iii) all keys to the premises have been returned to the Landlord; and (iv) Tenant’s forwarding address has been left with Landlord. 
  
 (c) Tenant further agrees that Landlord shall be entitled to commingle said security deposit with its own funds. 
  
 (d) Tenant further agrees that a mortgagee or holder of a deed of trust on
the premises hereby leased and/or a mortgagee or trust holder thereof in possession of said premises and/or a purchase of said premises at a foreclosure sale shall not have any liability to Tenant for Tenant’s security deposit. 
  
 (e) If Tenant is in default under this Lease more than two (2) times within
any 12-month period, irrespective of whether or not such default is cured, then, without limiting Landlord’s other rights and remedies provided for in this Lease or at law or in equity, the security deposit shall be increased, within five (5)
days after Landlord’s written demand, by an amount equal to the greater of: (i) an amount equal to the original security deposit, or (ii) the then current monthly base rent. 
  
 34. Notices to Mortgagee. 
  
 Tenant agrees that a copy of any notice of default from Tenant to Landlord shall also be sent to the holder of any mortgage or deed of trust on the premises; provided
Tenant has been given written notice of the fact that such mortgage or deed of trust has been made and the name and address of the mortgagee or holder of the deed of trust; and Tenant shall allow said mortgagee or holder a reasonable time, not to
exceed ninety (90) days from the receipt of said notice, to cure, or cause to be cured, any such default. If such default cannot reasonably be cured within the time specified herein, then such additional time as may be necessary shall be allowed,
provided the curing of such default is commenced and diligently pursued (including, but not limited to, commencement of foreclosure proceedings if necessary to effect such cure) in which event this Lease shall not be terminated while such remedies
are being thus diligently pursued. 
  
 35. Estoppel Certificate.

  
 Tenant shall, at any time and from time to time during the term of this Lease
or any renewal thereof, upon request of Landlord, execute, acknowledge, and deliver to Landlord or its designee, a statement in writing, certifying that this Lease is unmodified and in full force and effect if such is the fact (or if there have been
any modifications thereof, that the same is in full force as modified and stating the modifications), the dates to which the rents and other charges have been paid in advance, if any, and any defaults or claimed defaults by Landlord. Any such
statement delivered pursuant to this paragraph may be relied upon by any prospective purchaser of the estate of Landlord or by the mortgagee or any assignee of any mortgagee or the trustee or beneficiary of any deed of trust constituting a lien on
the premises or upon property in which the premises are situate. 
  

 E-19 

 36. Environmental Provisions. 
  
 (a) Tenant and its successors and assigns shall use and operate the building, the property and the leased premises,
respectively, at all times during the term hereof, under and in compliance with all federal and State of Maryland laws and regulations, and in compliance with all applicable Environmental Legal Requirements. “Environmental Legal
Requirements” shall mean any applicable law relating to public health, safety or the environment, including, without limitation, relating to releases, discharges or omissions to air, water, land or groundwater, to the withdrawal or use of
groundwater, to the use and handling of polychlorinated biphenyls (“PCB’s”) or asbestos, or asbestos containing products, to the disposal, treatment, storage or management of solid or other hazardous or harmful wastes or to exposure
to toxic, hazardous or other harmful materials (collectively “Hazardous Substances”) to the handling, transportation, discharge or release of gaseous or liquid substance and any regulation or final order or directive issues pursuant to
such statute or ordinance, in each case applicable to the premises, the building or its operation, construction or modification, including without limitation the following: the Clean Air Act, the Federal Water Pollution Control Act
(“FWPCA”), the Safe Drinking Water Act, the Toxic Substances Control Act, the Comprehensive Environmental Response Compensation and Liability Act, as amended by the Solid and Hazardous Waste Amendments of 1984 (“RCRA”), the
Occupational Safety and Health Act, the Emergency Planning and Community Right-to-Know Act of 1986, the Solid Waste Disposal Act, and any state statutes addressing similar matters, and any state statute providing for financial responsibility for
clean-up or other actions with respect to the release or threatened release of any of the above-referenced substances. 
  
 (b) Tenant hereby indemnifies and saves Landlord harmless from all liabilities and claims arising from the use, storage or placement of any Hazardous
Substances upon the premises or elsewhere within the Building or property of Landlord (if brought or placed thereon by Tenant, its agents, employees, contractors or invitees); and Tenant shall (i) within fifteen (15) days after written notice
thereof, take or cause to be taken, at its sole expense, such actions as may be necessary to comply with all Environmental Legal Requirements and (ii) within fifteen (15) days after written demand therefor, reimburse Landlord for any amounts
expended by Landlord to comply with any Environmental Requirements with respect to the premises or with respect to any other portions of Landlord’s Building or property as the result of the placement or storage of Hazardous Substances by
Tenant, its agents, employees, contractors or invitees, or in connection with any judicial or administrative investigation or proceeding relating thereto, including, without limitation, reasonable attorneys’ fees, fines or other penalty
payments. 
  
 (c) For purposes of this provision, Tenant shall be
conclusively deemed to have violated the Environmental Legal Requirements if (i) any notice or order is directed to either Landlord or Tenant by any governmental agency, body, or court alleging that such violation has occurred; or (ii) if Landlord
obtains and delivers to Tenant a report prepared by an engineer or other party engaged in the business of testing or determining the existence of Hazardous Substances, which report states that there are Hazardous Substances used, stored or placed
upon the premises. In the event Tenant is deemed to have violated any of the Environmental Legal Requirements as set 
  

 E-20 

 forth in the preceding sentence, Landlord shall have the right and option, after fifteen (15) days prior written notice
to Tenant, to terminate this lease by written notice thereof to Tenant, in which event Landlord shall retain all rights and remedies, and Tenant shall be subject to all liabilities, set forth in Article 13 of this lease notwithstanding such
termination. 
  
 37. Captions. 
  
 The captions of the various sections of this Lease are for convenience only and are not a
part of this Lease. Such captions shall not be construed to define or limit any of the provisions of this Lease. 
  
 38. Final and Entire Agreement. 
  
 This Lease contains the final and entire agreement between the parties hereto, and neither they nor their agents shall be bound by any terms, conditions or
representations not herein written. 
  
 39. Tenant Representative.

  
 The name, address and telephone number of Tenant’s representative to be
contacted in event of emergency: 
  
 40. Additional Rent.

  
 All sums of money required to be paid by Tenant to Landlord pursuant to the
terms of this Lease, unless otherwise specified herein, shall be considered additional rent and shall be collectible by Landlord as additional rent, in accordance with the terms of this Lease. Nothing herein contained shall be deemed to suspend or
delay the payment of any amount of money or charge at the time the same becomes due and payable hereunder or to limit any other remedy of Landlord. 
  
 41. Additional Items. 
  

	 	A.	Landlord shall provide the premises in accordance with the attached floor plan. 

  

	 	B.	Tenant shall be provided three (3) reserved parking spaces for Avatech’s customers in front of Avatech’s leased premises. 

  

	 	C.	Avatech shall have the right to install its name and logo on the front face of the Building in accordance with Landlord standard signage policy and Landlord’s written consent.

  
 42. Renewal Options. 
  
 If Tenant is not then in default under this Lease or any of the provisions hereof, Tenant
may extend the term of this Lease for one (1) additional successive period of five (5) years, by notifying Landlord in writing of its intention to do so at least one hundred eighty (180) days prior to the expiration of the then current term. Each
such renewal term shall be under the same terms and conditions as are herein set forth except that the annual rental for each succeeding renewal term shall be adjusted as follows: 
  
 RENTAL RATE SHALL BE THE THEN CURRENT MARKET RATE BUT IN NO EVENT LESS THAN THE PREVIOUS YEARS RENTAL RATE. THE RENTAL RATE
SHALL INCREASE ANNUALLY AT A RATE OF FOUR PERCENT (4%) THROUGHOUT THE RENEWAL TERM. 
  

 E-21 

 43. Right of First Offer. 
  
 Landlord hereby grants Tenant a right of first offer to lease contiguous space as the same becomes unoccupied within the
building at the then prevailing rate charged by Landlord to other tenants for comparable space within the Business Park of which the building is a part. In the event Landlord becomes aware that such contiguous space will become available, Landlord
shall give Tenant written notice thereof which notice shall set forth the prevailing rent and other terms under which Landlord is willing to lease the space. In the event Tenant desires to exercise its right of first offer, Tenant shall be required
to give Landlord written notice thereof within five (5) business days from the date of such notice, and Tenant shall be required to enter into a lease for such space within thirty (30) days following the date of such notice. In the event Tenant
fails to give Landlord notice of acceptance of such right of first offer within such five (5) business day period or in the event Tenant fails to execute a lease within thirty (30) days thereafter, Tenant shall be deemed to have forfeited its right
of first offer respect to such contiguous space; provided however that if such contiguous space again becomes available during the term of this Lease or the renewal term hereof, Tenant shall again have a similar right of first offer under the same
terms and conditions herein set forth. 
  
 44. Time. 

 
 Time is of the essence for all purposes in this Lease. 
  
 AS WITNESS the hands and seals of the parties hereto the date and year first
above written. 
  

					
	 WITNESS:                                     
   
	 	 MERRITT MANAGEMENT CORPORATION
 AGENT for MERRITT-DM1, LLC

		
	  

	 	 /s/
                                        
                                        
             (SEAL)

	 	 	 LANDLORD

		
	 	 	 AVATECH SOLUTIONS

			
	  

	 	 BY:
	 	 /s/
                                        
                                       (SEAL)

	 	 	 	 	 TENANT

  

 E-22 

 TABLE OF CONTENTS FOR LEASE BETWEEN 
  
 MERRITT-DM1, LLC, LANDLORD 
  
 AND AVATECH SOLUTIONS, TENANT 
  

					
	1.	 	 PAYMENT OF RENTAL.
	  	2
			
	 2.
	 	 USE.
	  	2
			
	 3.
	 	 UTILITIES.
	  	2
			
	 4.
	 	 COMPLIANCE WITH LAWS.
	  	3
			
	 5.
	 	 ASSIGNMENT AND SUBLETTING.
	  	3
			
	 6.
	 	 LOADING CAPACITY.
	  	4
			
	 7.
	 	 INCREASE IN LANDLORD’S INSURANCE RATES.
	  	4
			
	 8.
	 	 INSURANCE - INDEMNITY.
	  	4
			
	 9.
	 	 ALTERATIONS.
	  	6
			
	 10.
	 	     OWNERSHIP OF ALTERATIONS.
	  	6
			
	 11.
	 	     REPAIRS AND MAINTENANCE.
	  	7
			
	 12.
	 	     TAX AND INSURANCE ESCALATION.
	  	8
			
	 13.
	 	     DEFAULT.
	  	8
			
	 14.
	 	     DAMAGE OR DESTRUCTION.
	  	10
			
	 15.
	 	     POSSESSION.
	  	10
			
	 16.
	 	     EXTERIOR OF PREMISES - SIGNS.
	  	11
			
	 17.
	 	     RELOCATION.
	  	11
			
	 18.
	 	     FOR RENT/SALE SIGNS.
	  	11
			
	 19.
	 	     WATER AND OTHER DAMAGE.
	  	11
			
	 20.
	 	     RIGHT OF ENTRY.
	  	12
			
	 21.
	 	     TERMINATION OF TERM.
	  	12
			
	 22.
	 	     CONDEMNATION.
	  	12
			
	 23.
	 	     SUBORDINATION.
	  	13
			
	 24.
	 	     LANDLORD’S RIGHT TO PERFORM TENANT’S COVENANTS.
	  	13
			
	 25.
	 	     ATTORNMENT.
	  	13
			
	 26.
	 	     NON-WAIVER OF FUTURE ENFORCEMENT.
	  	14
			
	 27.
	 	     PERSONAL PROPERTY TAXES.
	  	15
			
	 28.
	 	     RECORDATION OF LEASE.
	  	15
			
	 29.
	 	     NOTICES.
	  	15

  

 E-23 

					
	 30.
	 	     WAIVER OF JURY TRIAL.
	  	15
			
	 31.
	 	     SEVERABILITY.
	  	16
			
	 32.
	 	     SUCCESSORS AND ASSIGNS.
	  	16
			
	 33.
	 	     SECURITY DEPOSIT.
	  	16
			
	 34.
	 	     NOTICES TO MORTGAGEE.
	  	17
			
	 35.
	 	     ESTOPPEL CERTIFICATE.
	  	17
			
	 36.
	 	     ENVIRONMENTAL PROVISIONS.
	  	18
			
	 37.
	 	     CAPTIONS.
	  	19
			
	 38.
	 	     FINAL AND ENTIRE AGREEMENT.
	  	19
			
	 39.
	 	     TENANT REPRESENTATIVE.
	  	19
			
	 40.
	 	     ADDITIONAL RENT.
	  	19
			
	 41.
	 	     ADDITIONAL ITEMS.
	  	19
			
	 42.
	 	     RENEWAL OPTIONS.
	  	19
			
	 43.
	 	     RIGHT OF FIRST OFFER.
	  	20
			
	 44.
	 	     TIME.
	  	20

  

 E-24

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