Document:

Unassociated Document

     

    

    OFFICE
      LEASE

    

    by
      and between

    

    

    300
      W. FAYETTE STREET, LLC

    

    (Landlord)

    

    

    and

    

    

    BIOANALYTICAL
      SYSTEMS, INC.

    

    

    (Tenant)

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    TABLE
      OF CONTENTS

     

    

      
        	
                1.

              	
                Demise
                  and Term.

              	
                1

              
	 	 	
                 

              
	
                2.

              	
                Base
                  Rent.

              	
                3

              
	 	 	
                 

              
	
                3.

              	
                Payment,
                  Late Charge, Time of Essence.

              	
                4

              
	 	 	 
	
                4.

              	
                Tenant's
                  Proportionate Share.

              	
                4

              
	 	 	
                 

              
	
                5.

              	
                Real
                  Estate Taxes.

              	
                4

              
	 	 	
                 

              
	
                6.

              	
                Operating
                  Costs.

              	
                5

              
	 	 	
                 

              
	
                7.

              	
                Care
                  of Premises.

              	
                9

              
	 	 	
                 

              
	
                8.

              	
                Use
                  and Occupancy.

              	
                10

              
	 	 	
                 

              
	
                9.

              	
                Permitted
                  Name.

              	
                11

              
	 	 	
                 

              
	
                10.

              	
                Access
                  by Landlord.

              	
                11

              
	 	 	 
	
                11.

              	
                Subordination.

              	
                11

              
	 	 	
                 

              
	
                12.

              	
                Assignment
                  or Subletting.

              	
                12

              
	 	 	
                 

              
	
                13.

              	
                Alterations.

              	
                12

              
	 	 	
                 

              
	
                14.

              	
                Common
                  Facilities.

              	
                13

              
	 	 	
                 

              
	
                15.

              	
                Appearance
                  Outside.

              	
                13

              
	 	 	
                 

              
	
                16.

              	
                Signs.

              	
                14

              
	 	 	
                 

              
	
                17.

              	
                Security
                  Deposit.

              	
                14

              
	 	 	
                 

              
	
                18.

              	
                Damage
                  to Premises.

              	
                14

              
	 	 	
                 

              
	
                19.

              	
                Waiver
                  or Breach.

              	
                15

              
	 	 	
                 

              
	
                20.

              	
                Rules
                  and Regulations.

              	
                15

              
	 	 	
                 

              
	
                21.

              	
                Insurance.

              	
                15

              
	 	 	
                 

              
	
                22.

              	
                Condemnation.

              	
                18

              
	 	 	
                 

              
	
                23.

              	
                Additional
                  Rent and Attorneys' Fees.

              	
                19

              
	 	 	
                 

              
	
                24.

              	
                Covenant
                  to Surrender.

              	
                19

              

      

       

      
        
          
          

        

        
          -i-

          
            

          

        

        
          
          

        

      

       

      
        	
                25.

              	
                Quiet
                  Enjoyment.

              	
                19

              
	 	 	
                 

              
	
                26.

              	
                Defaults.

              	
                19

              
	 	 	
                 

              
	
                27.

              	
                Notice.

              	
                20

              
	 	 	
                 

              
	
                28.

              	
                Other
                  Taxes.

              	
                21

              
	 	 	
                 

              
	
                29.

              	
                Representations.

              	
                22

              
	 	 	
                 

              
	
                30.

              	
                Trial
                  by Jury.

              	
                22

              
	 	 	
                 

              
	
                31.

              	
                Gender.

              	
                22

              
	 	 	 
	
                32.

              	
                Construction
                  of Premises.

              	
                22

              
	 	 	
                 

              
	
                33.

              	
                Estoppel
                  Certificates.

              	
                22

              
	 	 	
                 

              
	
                34.

              	
                Landlord's
                  Liability.

              	
                22

              
	 	 	
                 

              
	
                35.

              	
                Hazardous
                  Materials.

              	
                22

              
	 	 	
                 

              
	
                36.

              	
                Security.

              	
                23

              
	 	 	 
	
                37.

              	
                Broker
                  Commission.

              	
                23

              
	 	 	
                 

              
	
                38.

              	
                Authority.

              	
                23

              
	 	 	
                 

              
	
                39.

              	
                Right
                  of First Offer.

              	
                23

              

      

    

     

    
      
        
        

      

      
        -ii-

        
          

        

      

      
        
        

      

    

    

    LEASE
      AGREEMENT

    

    This
      LEASE, made the 4th
      day of
      May, 2007 by and between 300 W. FAYETTE STREET, LLC, a Delaware limited
      liability company (hereinafter called "Landlord"),
      and
      BIOANALYTICAL SYSTEMS, INC., an Indiana corporation (hereinafter called
      "Tenant").

    

    WITNESSETH:

     

    
      	 	
              1.

            	
              Demise
                and Term.

            

    

    

    (a) That
      in
      consideration of the mutual promises herein contained, the Landlord hereby
      rents
      to the Tenant, and the latter does hereby rent from the former, the Premises
      described as floors Basement, 2, and 3 and the lobby vestibule of 300-306 W.
      Fayette Street, Baltimore City, Maryland, more particularly described on
Exhibit
      A,
      attached hereto and made a part hereof, containing approximately 46,000 rentable
      square feet (the "Premises") for the term of seven (7) years beginning on the
      Commencement Date as hereinafter defined. The number of rentable square feet
      in
      the Premises and the Building shall be determined by Landlord's architect
      pursuant to the American National Standard Method of Measuring Floor Area in
      Office Buildings, ANSI/BOMA Z65.1 - 1996. The building at 300-306 W. Fayette
      Street will hereinafter be referred to as the "Building".

    

    (b) The
      Commencement Date, whenever used herein, shall be January 5, 2008. On the
      Commencement Date, Tenant's obligations under this Lease will begin. This Lease
      is effective as of the date hereof. The Term will commence on the Commencement
      Date and will expire, unless extended pursuant to the terms and conditions
      of
      this Lease, at midnight on January 4, 2015 (the "Expiration Date").

    

    (c) Renewal
      Option.
      Provided that, at the time of each such exercise, (i) the originally named
      Tenant shall be in occupancy of the Premises, and (ii) Tenant is not then in
      default beyond expiration of all applicable notice, grace and cure periods,
      Tenant may have two (2) five (5) year options to renew this lease at the Market
      Rent. Tenant shall exercise each option by providing written notice to Landlord
      of its election to exercise such option no later than twelve (12) months prior
      to the expiration of the Term or the first Renewal Term, as applicable ("Renewal
      Notice"); provided, however, that if Tenant's estate hereunder shall terminate
      after exercise of such option to renew but prior to the commencement of the
      Renewal Term, Tenant's option to renew shall expire upon such
      termination.

    

    (i) No
      assignee or subtenant under this Lease shall have the right to exercise any
      renewal option.

    

    (ii) All
      terms, covenants, and conditions of this Lease shall remain in full force and
      effect during each Renewal Term, except that the Base Rent applicable to the
      Renewal Term shall be as set forth in this Section 1(c). If the Tenant fails
      to
      give notice exercising the foregoing option by the date required herein, then
      Tenant's rights and options to renew shall be automatically terminated and
      of no
      further force or effect. All references in this Lease to the "Term"
      shall
      include each Renewal Term for which Tenant shall have effectively exercised
      its
      renewal option.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (iii) The
      "Market
      Rent"
      shall
      be the fair market rent for the Premises determined as of the date occurring
      twelve (12) months prior to the end of the Original Term or the first Renewal
      Term, to be effective at the commencement of each new term, taking into account
      all then relevant factors (including, without limitation, the presence or
      absence of concessions, allowances, abatements and the like). If Tenant
      exercises its option to renew hereunder, Tenant and Landlord shall make a good
      faith effort to agree on the Market Rent. Landlord shall provide Tenant the
      Market Rate within thirty (30) days of Tenant's exercise of its option to renew.
      The "Outside
      Negotiation Date"
      is
      defined as the date that is sixty (60) days after Tenant's exercise of its
      option to renew. If Landlord and Tenant are unable to agree upon the Market
      Rent
      by the Outside Negotiation Date, then, Landlord and Tenant shall determine
      the
      Market Rent in accordance with the arbitration procedure set forth in this
      section 1(c).

    

    (iv) Within
      ten (10) days after the Outside Negotiation Date, the parties shall each appoint
      a commercial real estate broker (hereinafter referred to as the "Appraiser")
      who
      shall act on behalf of and bind the Landlord and Tenant, respectively. Each
      Appraiser shall have at least ten (10) years' experience as a broker of
      commercial leasehold estates, and shall be knowledgeable in office rentals
      in
      the Central Business District of Baltimore, Maryland market.

    

    (v) Each
      Appraiser so appointed shall be instructed to determine independently of the
      other the Market Rent pursuant to this Section 1(c) within ten (10) business
      days after the making of Landlord's or Tenant's request. If within ten (10)
      business days after the making of Landlord's or Tenant's request, Landlord's
      Appraiser and Tenant's Appraiser shall mutually agree upon the determination
      of
      the Market Rent, their determination shall be final and binding upon the
      parties.

    

    (vi) If
      Landlord's Appraiser and Tenant's Appraiser shall fail to agree within said
      10-day period, and if the difference between the amounts so determined shall
      not
      exceed four percent (4%) of the lesser of such amounts, then the Market Rent
      shall be an amount equal to fifty percent (50%) of the sum of the amounts so
      determined (i.e., the average of the two determinations).

    

    (vii) If
      the
      difference between the amounts so determined exceeds four percent (4%) of the
      lesser of such amounts, then (A) such two Appraisers shall have twenty (20)
      days to appoint a third Appraiser; (B) if such Appraisers fail to do so,
      then either Landlord or Tenant may request the American Arbitration Association
      in Maryland or any successor organization thereto to appoint an Appraiser within
      twenty (20) days of such request and both parties shall be bound by any
      appointment so made within such twenty (20) day period; and (C) if no such
      third Appraiser shall have been appointed within such twenty (20) days or within
      ninety (90) days of the original request for a determination of the Market
      Rent,
      whichever is earlier, either Landlord or Tenant may apply to the Administrative
      Judge of the Circuit Court of Baltimore City to make such
      appointment.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (viii) Such
      third Appraiser, however selected, shall be jointly instructed by Landlord
      and
      Tenant to determine the Market Rent in accordance with this Section 1(c) in
      an
      amount equal to either the determination of Landlord's Appraiser or the
      determination of Tenant's Appraiser, within twenty (20) days after such
      Appraiser's appointment. The third Appraiser may not choose a third number;
      the
      third Appraiser must choose the Tenant's number or the Landlord's number. The
      determination of such third Appraiser shall be final and binding upon Landlord
      and Tenant as to the Market Rent.

    

    (ix) Landlord
      shall pay the fees of Landlord's Appraiser and Tenant shall pay the fees of
      Tenant's Appraiser. The fees of the third Appraiser, if any, shall be paid
      by
      Landlord if the third Appraiser's determination of the Market Rent equals that
      of Tenant's Appraiser, or by Tenant if the third Appraiser's determination
      of
      the Market Rent equals that of Landlord's Appraiser.

    

    (x) The
      final
      determination of such Appraiser or Appraisers shall be in writing and shall
      be
      binding and conclusive on the parties, each of whom shall receive counterpart
      copies thereof. In rendering such decision the Appraisers shall not add to,
      subtract from, or otherwise modify the provisions of this Lease. In determining
      the Market Rent, the Appraisers shall consider all the items set forth above
      for
      consideration in determining the Market Rent. Instructions to such effect,
      including a copy of this Section 1(c) of this Lease, shall be given to the
      Appraisers.

    

    (d) Tenant's
      Right to Lease Storage Space.
      If
      Tenant notifies Landlord that it wishes to lease an area of the sub-basement
      level of the Building for storage, Landlord shall add such designated area
      to
      Tenant's Premises. Tenant may wall off and secure such area. The Base Rent
      for
      such storage space shall be twenty-five percent (25%) of the then current Base
      Rent for the Premises (in other words, the Base Rent for the storage area will
      increase by twelve and one-half cents ($0.125) per year during the initial
      term). The square footage of such space shall not be included in the calculation
      of Tenant's Proportionate Share. Also, Tenant will be provided with an allowance
      of Four Dollars and Thirty-seven Cents ($4.37) per rentable square foot of
      storage space for Tenant Improvements.

     

    2. Base
      Rent. The
      total
      monthly Base Rent for each month of the Term after the Commencement Date shall
      be paid by Tenant in advance, on the first day of each month, in equal monthly
      installments of Forty-Four Thousand Eighty-Three Dollars ($44,083.00) (the
      Base
      Rent to be adjusted if the size of the Premises changes following an actual
      measurement of the Premises, as set forth above). The Base Rent shall be the
      product of the total rentable square feet in the Premises multiplied by the
      rental rate per square foot. On the Commencement Date, the rental rate shall
      be
      Eleven Dollars and Fifty Cents ($11.50), and the rental rate shall increase
      by
      Fifty Cents ($0.50) each year beginning January 1st, 2009 during the Term,
      as
      follows:

    

      
        	
                January
                  1, 2009:

              	
                $12.00

              
	
                January
                  1, 2010:

              	
                $12.50

              
	
                January
                  1, 2011:

              	
                $13.00

              
	
                January
                  1, 2012:

              	
                $13.50

              
	
                January
                  1, 2013:

              	
                $14.00

              
	
                January
                  1, 2014:

              	
                $14.50

              

      

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

    If
      the
      Term does not begin on the first day or end on the last day of a month, the
      Base
      Rent for that partial month shall be prorated by multiplying the monthly Base
      Rent by a fraction, the numerator of which is the number of days of the partial
      month included in the Term and the denominator of which is the total number
      of
      days in that full calendar month. The first installment of Base Rent shall
      be
      the pro-rated amount due for January, 2008, which shall be due and payable
      on
      the Commencement Date (including Tenant's Proportionate Share of estimated
      Real
      Estate Taxes and Operating Costs).

     

    3. Payment,
      Late Charge, Time of Essence. The
      Tenant covenants to pay the Base Rent as herein provided without any deduction
      whatsoever, and without any obligation on the Landlord to make demand for it,
      failing which the Tenant shall pay to the Landlord as Additional Rent, after
      the
      fifth (5th) Business Day ("Business Day" means every day except Saturdays,
      Sundays and Federal Holidays) that such payment remains due but unpaid, a late
      charge equal to five percent (5%) of such payment which remains due but unpaid.
      Time is of the essence in this Lease. Payments shall be made to Landlord at
      the
      address set forth herein for Notice.

     

    4. Tenant's
      Proportionate Share.
      Tenant's
      Proportionate Share means a fraction, the numerator of which is the number
      of
      rentable square feet of the Premises and the denominator of which is the number
      of rentable square feet in the Building, subject to adjustment from time to
      time
      as the numerator and denominator change.
      Given
      the approximate size of the Premises (see Section 1(a)) and the number of
      rentable square feet in the Building, Tenant's Proportionate Share on the date
      hereof is 46,000/112,970 or forty and seven-tenths percent (40.7%), which is
      subject to further modification as final measurements are made.

     

    5. Real
      Estate Taxes.
      Tenant,
      as of the Commencement Date, covenants and agrees to pay Landlord within thirty
      (30) days of Landlord's notice to Tenant, as Additional Rent, Tenant's
      Proportionate Share of any real estate taxes assessed against the land and
      Building in which the Premises is included. If this Lease shall be in effect
      for
      less than a full tax fiscal year, Tenant shall pay a prorated share of the
      taxes, based upon the number of days that this Lease is in effect. "Taxes"
      as
      used herein shall include, but not by way of limitation, all real property
      taxes, and any and all other benefits or assessments which may be levied on
      the
      Premises or the land and Building in which the same are situate, but shall
      not
      include any penalties or late fees, income tax on the income or Base Rent
      payable hereunder or any inheritance, estate, succession, transfer, gift,
      franchise, corporation, income or profit tax that is or may be imposed upon
      Landlord. Any reasonable expense incurred by Landlord in contesting any real
      estate tax shall be included as an item of taxes for the purpose of computing
      Additional Rent due the Landlord.

    

    (a) Landlord
      shall collect, together with the monthly payment of Base Rent hereunder, an
      amount equal to one-twelfth (1/12) of Tenant's Proportionate Share of the
      estimated real estate taxes due for the next succeeding fiscal year so that
      Landlord shall have an amount sufficient to pay such taxes when due. Landlord
      may also make adjustments when necessary in the case of special assessments
      or
      taxes so that Landlord will have an amount sufficient to pay such taxes when
      due. Appropriate adjustments shall be made between Landlord and Tenant upon
      the
      determination of the actual amount of such taxes.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    6. Operating
      Costs.

    

    (a) Tenant,
      as of the Commencement Date, covenants and agrees to pay Landlord within thirty
      (30) days of Landlord's notice to Tenant, as Additional Rent, Tenant's
      Proportionate Share of all Operating Costs.

     

    (b) Landlord
      shall collect, together with the monthly payment of Base Rent hereunder, an
      amount equal to one-twelfth (1/12) of Tenant's Proportionate Share of the
      estimated Operating Costs due for the next succeeding calendar year so that
      Landlord shall have an amount sufficient to pay such Operating Costs when due.
      Appropriate adjustments shall be made between Landlord and Tenant upon the
      determination of the actual amount of such Operating Costs.

    

    (c) "Operating
      Costs" means any and all reasonable costs and expenses incurred by the Landlord
      for services performed by the Landlord or by others on behalf of the Landlord
      with respect to the operation and maintenance of the Premises, Building and
      the
      Common Facilities located therein, in a manner deemed reasonable and appropriate
      by Landlord, including, without limitation, all costs and expenses of Landlord
      providing the following services:

    

    (i) operating,
      maintaining, repairing, lighting, signing, cleaning, removing trash from,
      painting, controlling of rodents in, policing and securing the Common
      Facilities;

    

    (ii) purchasing
      and maintaining in full force insurance for the Building as deemed necessary
      in
      Landlord's reasonable discretion (including, without limitation, liability
      insurance for personal injury, death and property damage, rent insurance,
      insurance against fire, extended coverage, theft or other casualties, workers'
      compensation insurance covering personnel, fidelity bonds for personnel,
      insurance against liability for defamation and claims of false arrest occurring
      on or about the Common Facilities, and plate glass insurance);

    

    (iii) operating,
      maintaining, repairing and replacing machinery, furniture, accessories and
      equipment used in the operation and maintenance of the Building, and the
      personal property taxes and other charges incurred in connection with such
      machinery, furniture, accessories and equipment; however, if a replacement
      expenditure is not a current expense under Generally Accepted Accounting
      Principles ("GAAP"),
      then,
      the cost thereof shall be amortized over a period equal to the useful life
      of
      such replacement, determined in accordance with GAAP, and the amortized cost
      allocated to each calendar year during the Term. Capital expenditures should
      be
      made in the interest of reducing operating costs.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (iv) maintaining,
      replacing and repairing curbs, walkways, drainage pipes, ducts, conduits and
      lighting fixtures throughout the Common Facilities;

    

    (v) interior
      and exterior planting, replanting and replacing flowers, shrubbery, trees,
      grass
      and planters;

    

    (vi) providing
      electricity, heating, steam, ventilation and air conditioning to the Building,
      HVAC service to the Building and non-central HVAC usage (VAV boxes), and
      telecommunications services infrastructure, and operating, maintaining and
      repairing any equipment used in connection therewith, including, without
      limitation, costs incurred in connection with determining the feasibility of
      installing, maintaining, repairing or replacing any facilities, equipment,
      systems or devices which are intended to reduce utility expenses of the Building
      as a whole and repair and maintenance of HVAC facilities and telecommunications
      infrastructure and related electrical and mechanical equipment serving all
      rentable square feet of office space in the Building; however, if a replacement
      expenditure is not a current expense under GAAP, then, the cost thereof shall
      be
      amortized over a period equal to the useful life of such replacement, determined
      in accordance with GAAP, and the amortized cost allocated to each calendar
      year
      during the Term;

    

    (vii) water
      and
      sanitary sewer services and other services, if any, furnished to the Building,
      Premises, Common Facilities and all rentable square feet in the Building for
      the
      non-exclusive use of tenants;

    

    (viii) parcel
      pick up, delivery and other similar services;

    

    (ix) enforcing
      and complying with any operating agreements pertaining to the Common Facilities
      or any portions thereof, and any easement and/or rights agreements entered
      into
      by the Landlord for the benefit and use of the Building or tenants thereof,
      or
      any arbitration or judicial actions undertaken with respect to the same and
      all
      minor privilege fees;

    

    (x) cleaning,
      maintaining and repairing the Building, including, without limitation, exhaust
      systems, sprinkler systems, pumps, fans, switchgear, loading docks and ramps,
      freight elevators, passenger elevators, stairways, service corridors, delivery
      passages, transformers, doors, walls, floors, skylights, ceilings, windows,
      emergency generators, and fire and life safety equipment and to the extent
      these
      expenses can be classified as capital expenses they should be
      amortized;

    

    (xi) accounting,
      audit and fees and expenses, including a commercially reasonable property
      management fee not to exceed five percent (5%) of all revenue of the Building,
      payroll, payroll taxes, employee benefits and related expenses of all personnel
      engaged in the operation, maintenance, and management of the Building,
      including, without limitation, the property manager, any maintenance personnel,
      secretaries and bookkeepers (including, specifically, uniforms and working
      clothes and the cleaning thereof, tools, equipment and supplies used by such
      personnel, and the expenses imposed on or allocated to the Landlord or its
      agents pursuant to any collective bargaining or other agreement) (if any
      personnel are engaged in or responsible for more than one (1) property, then
      an
      equitable allocation shall be made of the expense associated with such
      personnel), office expenses for on-site maintenance and/or management
      office;

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (xii) the
      cost
      and expense for substituting services, labor or materials in place of any of
      the
      items comprising the Operating Costs, or for any additional services, labor
      or
      materials or improvements to comply with any federal, state and local laws,
      orders, regulations and ordinances applicable to the Building enacted after
      the
      Commencement Date, which may hereafter be in force, provided, however that
      if,
      at the time of the substitution or addition, such costs are not considered
      a
      current operating expense under GAAP, then the cost thereof shall be amortized
      over a period equal to the useful life of such replacement, determined in
      accordance with GAAP, and the amortized cost allocated to each calendar year
      during the Term;

    

    (xiii) the
      cost
      (including reasonable legal, architectural and engineering fees incurred in
      connection therewith) of any improvement made to the Building during any
      Operating Year either (x) in order to comply with any future legal requirement
      or insurance requirement imposed or enacted after the Commencement Date, whether
      or not such legal requirement or insurance requirement is valid or mandatory,
      (y) with the reasonable expectation by Landlord of reducing Operating Costs
      (as,
      for example, a labor-saving improvement) or enhancing services, or (z) in lieu
      of a repair; provided, however, to the extent the cost of such improvement
      is
      required to be capitalized under generally accepted accounting principles,
      such
      cost shall be amortized over the useful economic life of such improvement as
      reasonably estimated by Landlord, and the annual amortization shall be deemed
      an
      Operating Cost in each of the Operating Years during which the cost of the
      improvement is amortized;

    

    (xiv) providing
      janitorial and trash removal services to the Building and Premises;
      and

    

    (xv) all
      other
      costs of maintaining, repairing or replacing any or all of the Building
      (including expenses of landscaping, snow, ice, water and debris removal, outdoor
      lighting, road maintenance and exterior signage relating to the Building);
      however, if a replacement expenditure is not a current expense under GAAP,
      then,
      the cost thereof shall be amortized over a period equal to the useful life
      of
      such replacement, determined in accordance with GAAP, and the amortized cost
      allocated to each calendar year during the Term.

    

    Notwithstanding
      the foregoing, the following items shall be excluded from Operating
      Expenses:

    

    
      	
            	(1)	
              franchise
                or income taxes imposed upon
                Landlord;

            

    

    

    
      	 	
              (2)

            	
              debt
                service on Mortgages and any costs and expenses relating to a refinancing
                or debt modification, including legal fees, title insurance premiums,
                survey expenses, appraisal, environmental report, or engineering
                report;

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (3)

            	
              leasing
                commissions, brokerage fees or legal fees incurred in connection
                with the
                negotiation and preparation of letters, deal memos, letters of intent,
                leases and related documents or enforcement with respect to the leasing,
                assignment or subletting of space for any occupant of the
                Building;

            

    

    

    
      	 	
              (4)

            	
              the
                cost of tenant installations incurred in connection with preparing
                space
                for a new tenant or refurbishing or renovating space for an existing
                tenant;

            

    

    

    
      	 	
              (5)

            	
              salaries
                and other compensations of personnel above the grade of building
                manager;

            

    

    

    
      	 	
              (6)

            	
              any
                expense for which Landlord is otherwise compensated through the proceeds
                of insurance (less any deductible amounts paid) or is otherwise
                compensated by any tenant (including Tenant) of the Building for
                services
                in excess of the services Landlord is obligated to furnish to Tenant
                hereunder;

            

    

    

    
      	 	
              (7)

            	
              capital
                costs, depreciation or amortization (except as provided in the list
                of
                inclusions for Operating Costs under item (xiii)
                above);

            

    

    

    
      	 	
              (8)

            	
              costs
                incurred by Landlord due to a violation of any lease in the Building
                or
                penalties or charges arising due to violation of any Legal Requirement
                or
                Insurance Requirement required to be complied with by
                Landlord;

            

    

    

    
      	 	
              (9)

            	
              the
                cost of replacing the roof;

            

    

    

    
      	 	
              (10)

            	
              the
                cost of removing any hazardous materials located at the Building
                and/or
                complying with all environmental laws, but only to the extent such
                costs
                are not otherwise caused by or borne by
                Tenant;

            

    

    

    
      	 	
              (11)

            	
              fines
                or penalties for late payment;

            

    

    

    
      	 	
              (12)

            	
              services
                provided to other tenants but not to
                Tenant;

            

    

    

    
      	 	
              (13)

            	
              general
                corporate overhead;

            

    

    

    
      	 	
              (14)

            	
              works
                of art, charitable or political
                contributions;

            

    

    

    
      	 	
              (15)

            	
              reserves;
                and

            

    

    

    
      	 	
              (16)

            	
              entertainment
                or travel expenses.

            

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    Landlord
      warrants and represents that none of the expenses included in determining
      Tenant's Proportionate Share of Common Costs shall be included in any other
      charge payable under this Lease.

    

    (d) Tenant
      shall have the right to audit Landlord's books and records from time to time,
      but no more than one time every twelve (12) months, to verify the accuracy
      of
      the statements being provided by Landlord with respect to Operating Costs.
      Tenant shall recover the costs of such audit if the pass through of Operating
      Costs is more than one hundred six percent (106%) of the amount Tenant should
      have paid.

    

    (e) In
      calculating Operating Costs under this Lease, Landlord will increase those
      components of Operating Costs that Landlord reasonably believes would have
      been
      incurred during the year assuming the Building were ninety-five percent (95%)
      occupied.

     

    
      	 	
              7.

            	
              Care
                of Premises.

            

    

    

    (a) The
      Tenant agrees that it will take good care (including its own interior janitorial
      service) of the Premises, fixtures, and appurtenances, including the following
      items and elements serving the Premises: plumbing, heating and air conditioning
      equipment (excluding that on the exterior of the building), and keep same in
      good order and repair throughout the Term of this Lease in a manner comparable
      to the order and state of repair extant of the Commencement Date, and suffer
      or
      permit no waste or injury; Landlord shall assign to Tenant, for the benefit
      of
      the Tenant, to the extent they are assignable or otherwise available for the
      benefit of the Tenant, any warranties on such equipment furnished Landlord
      by
      the Tenant and/or provider thereof; that Tenant will conform to all laws,
      orders, and regulations of the Federal, State, County and City authorities
      or
      any of their departments, and will not, through its own act or neglect, cause
      any situation to exist in or about the Premises which would constitute a
      violation of any applicable Federal, State, County, or City Code Regulation
      or
      Ordinance governing use, occupancy, health, sanitation, or fire; that it will
      save harmless the Landlord from any liability arising from injury to person
      or
      property caused by any act or omission of Tenant, his agents, employees or
      guests; that it will repair at or before the end of the term, or sooner if
      so
      requested by the Landlord, all injury done by the installation or removal of
      furniture or other property, and will surrender the Premises at the end of
      the
      Term broom cleaned in as good condition as they were at the beginning of the
      term, ordinary wear and tear, condemnation, alterations as permitted by this
      Lease and casualties by fire and elements excepted. In the event of any increase
      in the cost of insurance as a result of the failure of the Tenant to comply
      with
      the provisions of this Paragraph, the Tenant will pay the amount of such
      increase as Additional Rent within thirty (30) days after the Landlord's written
      demand, which will provide evidence that the stated actions increased the cost
      of insurance.

    

    The
      Landlord shall be under no liability to the Tenant for any discontinuance of
      heat, air conditioning, and hot water unless due solely to Landlord's
      negligence. The Landlord shall not be liable for any loss or damage to the
      Tenant caused by rain, snow, water or storms that may leak into or flow from
      any
      part of the premises through any defects in the roof or plumbing or from any
      other source unless due solely to Landlord's negligence.

    

    (b) Landlord
      shall have no obligation whatsoever to make any repairs to the Premises other
      than to make repairs resulting from damage caused by negligence, if any, of
      Landlord or its agents or employees or contractors except as otherwise provided
      in this Agreement.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    (c) Landlord
      agrees to maintain and will keep in good repair the Common Facilities, the
      exterior walls of the Building, the roof, slabs, foundations and structural
      elements of the Building. Landlord, at its expense, will make all structural
      repairs that it deems necessary in its reasonable discretion (including all
      doors, door frames, floors, windows and glass); provided Tenant shall give
      Landlord notice of the necessity for such repairs. If the Premises, or any
      portion thereof critical to performance of Tenant's business, are rendered
      unfit
      for the business purposes for which it was leased due to a structural problem
      in
      the exterior walls, structural columns, roof, roof penetrations or structural
      floor, for more than thirty (30) consecutive days, then the Base Rent shall
      abate proportionately to the amount of space rendered unfit for the business
      purposes for which it was leased for the amount of time such condition shall
      exist.

    

    (d) Tenant
      shall not place a load upon any floor of the Premises that exceeds the lesser
      of
      (i) floor load per square foot, which such floor was designed to carry or (ii)
      the maximum floor load per square foot allowed by law. Business machines and
      mechanical equipment shall be placed and maintained by Tenant, at Tenant's
      expense, in settings sufficient in Landlord's reasonable judgment to absorb
      and
      prevent vibration, noise and annoyance.

    

    (e) There
      shall be no allowance to Tenant for any diminution of rental value and no
      liability on the part of the Landlord by reason of inconvenience, annoyance
      or
      injury to business arising from the making by Landlord, Tenant or others of
      any
      repairs in or to the Building or the Premises, or in or to the fixtures,
      appurtenances or equipment thereof. Except in case of emergency, as determined
      in Landlord's sole discretion, Landlord will use commercially reasonable efforts
      to minimize any interference with Tenant's use and occupancy in connection
      with
      Landlord's entering to make repairs.

    

    (f) In
      the
      event Tenant shall not proceed promptly and diligently to make any repairs
      or
      perform any obligation imposed upon it by this Section 6 within ten (10) days
      after receiving written notice from Landlord to make such repairs or perform
      such obligation (unless such repairs or obligation is of such nature that it
      cannot be cured within such ten (10) day period, in which case Tenant shall
      have
      such longer period of time as is required, provided that Tenant shall diligently
      prosecute such repairs or perform such obligation),
      then
      and in such event, Landlord, may, at its option, enter the Premises and do
      and
      perform 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, including an administrative fee equal to ten
      percent (10%) of the cost or expense incurred.

    

    (g) Landlord
      shall provide, at its expense, subject to reimbursement pursuant to Section
      6 of
      this Lease, all necessary services and maintenance to operate a professional
      office building, including, but not limited to, all necessary snow removal
      from
      the parking lots and sidewalks.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
      	 	
              8.

            	
              Use
                and Occupancy.

            

    

    

    (a) The
      Premises is to be used only for the purposes of medical clinical research (human
      research only), or for general office use, and for no other purpose without
      Landlord's prior approval which approval shall not be unreasonably withheld.
      Tenant will not use the Premises for any unlawful purpose; Tenant covenants
      not
      to conduct nor permit to be conducted on the Premises any business in violation
      of any law of the City in which the Premises is located or State or Federal
      law,
      ordinance or regulation. With respect to the remainder of the Building, Landlord
      shall, throughout the Term, and at Landlord's sole cost and expense, promptly
      observe and comply with all present and future laws, ordinances, notices,
      orders, rules, regulations, directions and requirements of all federal, state,
      county and municipal governments and the appropriate departments, commissions,
      boards and officers thereof (including, but not limited to, environmental laws
      (excluding, however, any environmental laws that apply solely due to the
      presence of hazardous materials brought onto the Premises by Tenant)), as well
      as any and all notices, orders, rules and regulations of the National Board
      of
      Fire Underwriters, or any other body now or hereafter constituted and exercising
      similar functions.

    

    (b) Tenant's
      clinical patients and related clinical staff are required to use the easternmost
      entrance to the Building on Fayette Street (the "Townhouse Entrance"). Tenant's
      other visitors and employees may use the Building's main entrance or the
      Townhouse Entrance.

     

    9. Permitted
      Name.
      Tenant
      shall conduct business in the Premises only in the name of Tenant and under
      no
      other name or trade name unless and until the use of some other name is approved
      in writing by Landlord, which approval shall not be unreasonably
      withheld.

     

    10. Access
      by Landlord.
      The
      Landlord shall retain duplicate keys to all of the doors of the Premises, and
      the Landlord or his agents shall have access to the Premises at all reasonable
      hours in order to inspect same, to clean or to make necessary repairs
      improvements within the Premises or the Building with reasonable prior notice
      to
      tenant unless an emergency situation exists at which time no notice is required.
      The
      Landlord will use reasonable efforts not to disturb Tenant's use or enjoyment
      of
      Premises if Landlord or his agents enters non-secured areas. The Landlord will
      not, except in the case of emergency, enter secured areas during active clinical
      studies without advance notice to Tenant. To ensure federal regulatory
      compliance during active studies, Tenant's chaperone will be required for
      Landlord or his agents. Landlord or his agents will follow chaperone guidance
      in
      all matters to ensure regulatory compliance. The
      Landlord shall have the right to show the Premises to prospective tenants upon
      48 hours advance notice and put a FOR LEASE sign in the windows at any time
      during the Term providing it does not unduly interfere with the Tenant's use
      of
      the Premises.

     

    11. Subordination.
      This
      Lease shall be subject to and subordinate at all times only to the lien of
      any
      first mortgage and/or deed of trust and to all advances made or hereafter to
      be
      made thereunder. This subordination provision shall be self-operative and no
      further instrument of subordination shall be required; however, Tenant agrees
      to
      execute, upon request, any such subordination document. The form of
      Subordination, Attornment and Non-Disturbance Agreement ("SNDA")
      to be
      executed by Tenant and Landlord at the same time this Lease is executed is
      attached hereto as Exhibit
      B.
      Landlord's lender shall execute this SNDA within thirty (30) days of the signing
      of this Lease and a copy of the fully signed SNDA will be provided to
      Tenant.

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

    12. Assignment
      or Subletting.
      Tenant
      shall not assign, mortgage or encumber this Lease, nor sublet the premises
      or
      any part thereof without the consent of Landlord, which consent shall not be
      unreasonably delayed or withheld. In the event of the insolvency or bankruptcy
      of Tenant, this Lease shall, at the option of the Landlord, terminate forthwith,
      and this Lease shall not, by operation of law or otherwise, be considered a
      part
      of the Tenant's estate.

     

    13. Alterations.

    

    (a) The
      Tenant covenants not to make or permit any alterations, additions or
      improvements to said Premises without the prior written consent of the Landlord
      which shall not be unreasonably withheld or delayed, unless such proposed work
      requires a permit under Baltimore City codes or otherwise, in which event
      Landlord's right to approve shall be absolute. All additions and improvements
      made by Tenant, except only moveable office furniture, and equipment, shall
      become the property of the Landlord at the termination of this Lease or the
      vacating of the Premises. At the Landlord's request, any such alterations and
      improvements made after the Commencement Date (except the Tenant Improvements
      as
      defined below) shall be restored to their original condition by Tenant at
      Tenant's expense at the termination of this Lease, if at the time of Landlord's
      consent to such alteration or improvement a condition was attached that required
      removal of such alteration or improvement.

    (b) Landlord's
      Alterations.

    

    (i) Landlord,
      at its sole cost and expense, shall install a dedicated elevator for the
      exclusive use of Tenant. If Landlord determines, in its sole discretion, that
      the dedicated elevator is unnecessary, the Tenant's Base Rent shall be reduced
      by Fifty Cents ($0.50) per rentable square foot.

    

    (ii) Prior
      to
      the Commencement Date, Landlord shall install a security system in the freight
      elevator in order to prohibit other tenants using the freight elevator of the
      Building, from accessing Tenant's Premises.

     

    (iii) Work
      to
      be Performed by Landlord for Tenant at Tenant's Expense (the "Tenant
      Improvements").

    

    (A) Landlord
      shall provide an allowance of Seventeen Dollars and Fifty Cents ($17.50) per
      rentable square foot for the Tenant to improve and renovate the
      Premises.

    

    (B) Landlord,
      at Tenant's cost and expense, shall perform and complete such work on the
      interior of the Premises. Tenant shall be responsible for preparing the plans
      and specifications for such Alternations. Such Alterations are subject to the
      consent of Landlord in accordance with Section 13(a) of the Lease. Tenant shall
      promptly submit same to Landlord, and Landlord shall not unreasonably withhold,
      delay or condition its consent to such plans and/or specifications. For work
      performed by Landlord completing Tenant's Alterations, Tenant shall pay Landlord
      the estimated cost to complete Tenant's Alterations beyond the amount described
      in Section 13(b)(iii)(a) above. Tenant understands and agrees that no work
      will
      begin until such amount is paid to Landlord. Upon approval of the plans and/or
      specifications by Landlord and receipt of any money necessary from Tenant,
      Landlord shall commence the work within sixty (60) days of request from Tenant
      and diligently pursue such work to completion.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    (C) During
      the period Landlord is performing work on the Premises pursuant to this Section
      13(b)(iii), Tenant shall have the right to enter upon the Leased Premises during
      normal business hours to install its fixtures, equipment, and other property
      so
      long as Tenant does not interfere with Landlord in the performance of Landlord's
      work. Landlord shall coordinate with Tenant in the performance and scheduling
      of
      such work so that Tenant can relocate its offices and continue its operations
      in
      other areas of the Premises.

    

    (D) Upon
      completion of construction as set forth in this Section 13(b)(iii), Landlord
      shall deliver to Tenant a certificate of completion by the architect, engineer
      or other person who supervised the construction, which shall state that all
      work
      performed by Landlord has been completed in accordance with Tenant's plans.
      Upon
      submission of a bill and reconciliation therefor from Landlord, Tenant shall
      pay
      Landlord the cost of the work beyond what has already been paid, pursuant to
      Section 13(b)(iii)(b), above.

    

    (E) Landlord
      shall consult with Tenant regarding selecting potential contractors, the bid
      process, engaging and hiring contractors, awarding bids, and developing the
      construction budget (including plans and specifications); all of which shall
      be
      subject to Tenant's reasonable approval and shall be competitively bid. Tenant
      understands and agrees that Landlord will be entitled to a five percent (5%)
      fee
      for the construction management of the Tenant Improvements.

     

    14. Common
      Facilities.
      The
      "Common Facilities" are those facilities and areas furnished by Landlord in
      or
      near the Building for the general, common use of the Building's tenants, their
      officers, agents, employees and customers, including, without limitation,
      sidewalks, elevators, parking lots, and the lobby. The Common Facilities shall
      at all times be subject to the exclusive control and management of Landlord.
      Landlord reserves the right, in its reasonable discretion, to change, rearrange,
      alter, modify, reduce or supplement any or all of the common facilities so
      long
      as adequate facilities in common are appropriate to ensure legally compliant
      operation and do not unreasonably inconvenience Tenant's study volunteers,
      clients or employees.

     

    15. Appearance
      Outside.
      Tenant
      shall maintain its windows in a neat and clean condition, shall keep the
      sidewalks adjoining the Demised Premises clean and free from rubbish, and shall
      store
      all
      trash and garbage in the dumpsters provided by Tenant. Tenant shall not burn
      any
      trash of any kind in or about the building, nor shall Tenant permit rubbish,
      refuse or garbage to accumulate or fire hazard to exist about the
      Premises.

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    

    16. Signs.
      The
      Tenant shall not display any sign, picture, advertisement, awning, merchandise,
      or notice on the outside or roof of the Building of which the Premises are
      a
      part, nor on the exterior of the Premises nor visible from the exterior of
      the
      Building unless approved by the Landlord in writing. All current signs in their
      current locations are approved.

     

    17. Security
      Deposit.

    

    (a) General.
      On or
      before the Commencement Date, Tenant will deposit with Landlord a Security
      Deposit in the amount of One Hundred Thirty Two Thousand Two Hundred and Fifty
      Dollars ($132,250) to secure Tenant's due performance and observance of the
      obligations, conditions or agreements of this Lease. On the Commencement Date,
      Landlord shall return the Letter of Credit Security provided under the Office
      Lease by and between Landlord and BASI Maryland, Inc. (an affiliate of Tenant)
      dated December 7, 2004. The Security Deposit will not bear interest while being
      held by Landlord hereunder.

    

    (b) Application
      of Security Deposit.
      If a
      default by Tenant occurs under this Lease, without prejudice to Landlord's
      other
      remedies, Landlord may, but will not be obligated to, apply all or any portion
      of the Security Deposit to compensate Landlord (whether in whole or in part)
      for
      such default. If any portion of the Security Deposit is so applied, Tenant
      shall
      be obligated to deposit with Landlord, within fifteen (15) days thereafter,
      the
      amount necessary to restore the balance of the Security Deposit to its original
      amount; provided, however, that neither the application of the Security Deposit
      as set forth above nor the payment by Tenant to restore the Security Deposit
      will operate to cure the default or to estop Landlord from pursuing any remedy
      to which Landlord would otherwise be entitled.

    

    (c) Transfer
      of Security Deposit.
      If any
      sale or transfer occurs of Landlord's interest in the Building, Landlord may
      transfer the Security Deposit to such purchaser or transferee, in which event
      Tenant will look solely to the new landlord for the return of the Security
      Deposit and Landlord will thereupon be released from all liability to Tenant
      for
      the return of the Security Deposit. The Security Deposit will not be
      transferable by Tenant to any assignee or subtenant, but will be held and
      returned directly to Tenant.

     

    18. Damage
      to Premises.
      If the
      Premises are partially damaged by fire or other casualty Landlord shall make
      repairs as speedily as conveniently possible. If the damage is so extreme as
      to
      render the Premises untenantable for the Permitted Use, the Base Rent shall
      cease until the Premises are put into repair by the Landlord. In the event
      of a
      total or substantial destruction of the Building of which the Premises form
      a
      part, or if in the judgment of the Landlord the damage to the Premises cannot
      be
      repaired within one hundred twenty (120) days, and if the Landlord shall decide
      not to restore or repair the same, or shall decide to demolish the building,
      then the Landlord or Tenant may, within forty-five (45) days after such fire
      or
      other casualty, by notification to the other party, terminate this
      Lease.

    

    In
      the
      event the Premises are only partially damaged and remain tenantable for the
      Permitted Use, Tenant shall continue to pay Base Rent, which Base Rent shall
      be
      equitably adjusted. In no event shall Landlord be liable for any loss or damage
      sustained by Tenant by reason of fire or other accidental casualty.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    In
      the
      event more than fifty (50%) percent of the building is destroyed and the
      Premises are untenantable for the Permitted Use, the Tenant may terminate this
      Lease upon thirty (30) days prior written notice to the Landlord.

     

    19. Waiver
      or Breach.
      No
      waiver of any breach of the covenants, provisions or conditions contained in
      this Lease shall be construed as a waiver of the covenant itself or any
      subsequent breach itself; and if any breach shall occur and afterwards be
      compromised, settled or adjusted, this Lease shall continue in full force and
      effect as if no breach had occurred.

     

    20. Rules
      and Regulations.
      Tenant
      shall comply with all rules and regulations of 300-306 West Fayette Street,
      which rules and regulations are attached hereto as Exhibit
      C
      and are
      hereby made a part of this Agreement. Any violation of said rules shall be
      a
      default under this Lease. Landlord shall have the right to reasonably make
      additions and amendments to the Rules and Regulations, which shall be as binding
      on Tenant as if set forth herein, provided such additions and amendments do
      not
      materially and adversely affect the Tenant's use of the Demised Premises, and
      provided that they are not inconsistent with the terms of this Lease and Tenant
      receives written notification of such changes.

    

    21. Insurance.

    

    (a) Tenant's
      Insurance.
      At all
      times the Tenant shall take out and keep in full force and effect, at its
      expense:

    

    (i) Comprehensive
      General Liability insurance, including Blanket Contractual Liability, Broad
      Form
      Property Damage, Completed Operations/Products Liability, Personal Injury
      Liability, Premises Medical Payments, Interest of Employees as Additional
      Insureds, and Broad Form General Liability Endorsement, with Combined Single
      limits of not less than Two Million Dollars ($2,000,000) Per Occurrence and
      Four
      Million Dollars ($4,000,000) Annual aggregate;

    

    (ii) Special
      Form property insurance written at full Replacement Cost and with an Agreed
      Amount Endorsement with deductibles of not more than Ten Thousand Dollars
      ($10,000.00) covering all of Tenant's property, including, without limitation,
      inventory, trade fixtures, floor coverings, furniture, electronic data
      processing equipment and any other property removable by Tenant under the
      provisions of this Lease;

    

    (iii) Worker's
      Compensation up to statutory limits and Employers Liability limits of at least
      $500,000 per Person, $500,000 per Accident and $500,000 per
      Disease;

    

    (iv) Umbrella
      Liability may be placed excess of Primary Comprehensive General Liability limits
      as long as the insurance in place is at least $2,000,000 Per Occurrence and
      $4,000,000 Annual Aggregate as noted above in Section 21(a); and

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    (v) such
      other insurance in such types and amounts as Landlord may reasonably require,
      from time to time.

    

    (b) Tenant's
      Contractor's Insurance.
      For all
      building, the Tenant shall require any contractor of the Tenant performing
      work
      in, on or about the Building or the Premises to take out and keep in full force
      and effect, at no expense to the Landlord:

    

    (i) Comprehensive
      General Liability insurance on an Occurrence Form, including Contractor's
      Liability coverage, Blanket Contractual Liability coverage, Broad Form Property
      Damage Endorsement, Contractor's Protective Liability, Personal Injury, Premises
      Medical Payments, Interest of Employees as Additional Insureds, Broad Form
      General Liability Endorsement, in an amount not less than a combined single
      limit per occurrence of Five Million Dollars ($5,000,000) and a Ten Million
      Dollar ($10,000,000) annual aggregate on a per location or per project basis.
      Liability Retentions or Deductibles shall not exceed $10,000 per loss, and
      in
      all cases must include an Aggregate Retention or Aggregate Deductible of no
      more
      than $25,000.

    

    (ii) Automobile
      Liability insurance, covering all owned, leased, Employers Non-Owned and Hired
      automobiles used by all contractors and all sub-contractors, with Combined
      Single limits of at least $1,000,000;

    

    (iii) Worker's
      Compensation up to statutory limits, including an All States Endorsement and
      Employers Liability limits of at least $1,000,000 per Person, $1,000,000 per
      Accident and $1,000,000 per Disease; and

    

    (iv) Such
      other insurance and in amounts as Landlord may reasonably require, from time
      to
      time.

    

    (c) Policy
      Requirements.

    

    (i) The
      company or companies writing any insurance which the Tenant is required to
      take
      out and maintain or cause to be taken out or maintained pursuant to subsections
      21(a) and/or 21(b), as well as the form of such insurance, at all times be
      subject to the Landlord's reasonable approval, and any such company or companies
      shall be licensed to do business in the State of Maryland and have a AM Best
      rating of at least A- or better and a financial size rating of IX or higher.
      Public liability and all-risk casualty insurance policies evidencing such
      insurance shall name the Landlord and/or its designees (including, without
      limitation, any Mortgagee) as Additional Insureds, shall be primary and
      noncontributory, and shall also contain a provision by which the insurer agrees
      that such policy shall not be cancelled, materially changed, terminated or
      not
      renewed except after ninety (90) days' advance written notice to the Landlord
      and/or such designees. All such policies, or certificates thereof, shall be
      deposited with the Landlord promptly upon commencement of the Tenant's
      obligation to procure the same. None of the insurance which the Tenant is
      required to carry and maintain or cause to be carried or maintained pursuant
      to
      subsections 21(a) and/or 21(b) shall contain deductible provisions in excess
      of
      Ten Thousand Dollars ($10,000), unless approved in writing in advance by the
      Landlord. If the Tenant fails to perform any of its obligations pursuant to
      this
      Section 21, the Landlord may perform the same and the cost thereof shall be
      payable by the Tenant as Additional Rent upon the Landlord's demand
      therefor.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    (d) Indemnities
      by Tenant and Landlord.

    

    (i) Subject
      to the provisions of subsection 21(h), the Tenant hereby agrees for itself and
      its successors and assigns to indemnify and save the Landlord harmless from
      and
      against any liability or claims of liability arising solely out of the
      negligence or intentional acts and omissions of the Tenant or its agents,
      contractors, licensees, suppliers, materialmen, invitees or employees in
      connection with (i) the use, occupancy, conduct, operation or management of
      the
      Premises; (ii) any work or thing whatsoever done or not done on the Premises
      during the Term performed by Tenant or its employees, agents or contractors;
      (iii) any breach or default in performing any of the obligations under the
      provisions of this Lease and/or applicable law by the Tenant during the Term;
      or
      (iv) any injury to or death of any person or any damage to any property
      occurring on the Premises.

    

    (ii) If
      any
      such claim, action or proceeding is brought against either party and/or any
      agent or Mortgagee, that party, at its own expense, promptly shall resist or
      defend such claim, action or proceeding or cause it to be resisted or defended
      by an insurer. The Landlord, at its option, shall be entitled to comment on
      the
      selection of Tenant's counsel, and participate in settlement and all other
      matters pertaining to such claim, action or proceeding, all of which shall
      be
      subject, in any case, to the prior written approval of the
      Landlord.

    

    (iii) Subject
      to the provisions of subsection 21(h), the Landlord hereby agrees for itself
      and
      its successors and assigns to indemnify and save the Tenant harmless from and
      against any liability or claims of liability arising solely out of the
      negligence or intentional acts and omissions of the Landlord, its agents or
      employees in connection with (i) the use, occupancy, conduct, operation or
      management of the Building, outside of the Premises; (ii) any work or thing
      whatsoever done or not done in the Building, outside of the Premises, during
      the
      Term performed by Landlord, its employees, agents or contractors; (iii) any
      breach or default in performing any of the obligations under the provisions
      of
      this Lease and/or applicable law by the Landlord during the Term; or (iv) any
      injury to or death of any person or any damage to any property occurring in
      the
      Building, outside of the Premises.

    

    (e) Landlord
      Not Responsible for Acts of Others.
      The
      Landlord shall not be responsible or liable to the Tenant, or to those claiming
      by, through or under the Tenant, for any loss or damage which may be occasioned
      by or through the acts or omissions of persons occupying or using space
      adjoining the Premises or any part of the premises adjacent to or connecting
      with the Premises or any other part of the Building, or for any loss or damage
      resulting to the Tenant (or those claiming by, through or under the Tenant)
      or
      its or their property, from (a) the breaking, bursting, stoppage or leaking
      of
      electrical cable and/or wires, or water, gas, sewer or steam pipes, (b) falling
      plaster, or (c) dampness, water, rain or snow in any part of the Building.
      Tenant hereby releases and waives all claims against Landlord, its agents and
      employees for injury or damage to person, property or business sustained in
      or
      about the Building or the Premises by Tenant, its agents or employees other
      than
      injury or damage caused by the negligence or willful misconduct of Landlord,
      its
      agents or employees. Neither the Landlord nor the Tenant is obligated to protect
      from the criminal acts of third parties the other party, the other party's
      agents, customers, invitees or employees, the Premises or any property of any
      of
      the other party's agents, customers, invitees or employees. Tenant hereby
      acknowledges that Tenant has the sole responsibility for the protection of
      the
      Premises, the Tenant's property and the Tenant's customers, agents, invitees
      and
      employees. Tenant acknowledges that, if Landlord shall provide security guards
      for the Common Facilities at the Building, Landlord does not represent,
      guarantee, or assume responsibility that Tenant will be secure from any claims
      or causes of action relating to such security guards.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    (f) Landlord's
      Insurance.
      During
      the Term, the Landlord shall maintain, in commercially reasonable amounts with
      commercially reasonable deductibles; (a) insurance on the Building against
      loss
      or damage by loss or damage covered with a Special Perils property form, (b)
      Comprehensive General Liability insurance with respect to the Common Facilities,
      against claims for personal injury or death, or property damage suffered by
      others occurring in, on or about the Building, and (c) any other insurance,
      in
      such form and in such amounts as are deemed reasonable by the Landlord. Landlord
      shall provide proof of insurance to Tenant upon request.

    

    (g) Increase
      in Insurance Premiums.
      The
      Tenant shall not do or suffer to be done, or keep or suffer to be kept, anything
      in, upon or about the Premises, the Building which will contravene the
      Landlord's policies of hazard or liability insurance or which will prevent
      the
      Landlord from procuring such policies from companies acceptable to the Landlord.
      If anything done, omitted to be done, or suffered by the Tenant to be kept
      in,
      upon or about the Premises, the Building shall cause the rate of fire or other
      insurance on the Premises, the Building to be increased beyond the minimum
      rate
      from time to time applicable to the Premises or to any such other property
      for
      the use or uses made thereof, the Tenant shall pay to the Landlord, as
      Additional Rent, the amount of any such increase upon the Landlord's demand
      therefore.

    

    (h) Waiver
      of Right of Recovery.
      To the
      extent that any loss or damage to the Premises, the Building, or other tangible
      property, or resulting loss of income, or losses under workers' compensation
      laws and benefits, are covered by insurance, neither party shall be liable
      to
      the other party or to any insurance company insuring the other party (by way
      of
      subrogation or otherwise), even though such loss or damage might have been
      occasioned by the negligence of such party, its agents or employees. In the
      event that such waiver of subrogation shall not be available to the parties
      except through the payment of additional premium therefore, the Tenant or the
      Landlord shall pay such additional premium.

     

    22. Condemnation.
      under
      the power of eminent domain, or sold under threat thereof, or taken in any
      manner for public use, the Landlord, at its option, may terminate this Lease,
      which Lease shall then terminate on the effective date of the condemnation
      or
      sale. The compensation awarded or paid for such taking shall belong to and
      be
      the sole property of the Landlord; provided, however, that Tenant may seek
      moving and relocation expenses and compensation for loss of business from the
      condemning authority, and Tenant shall be entitled to receive from Landlord
      or
      the condemning authority, as the case may be, that portion of such compensation
      awarded by the condemning authority as is deemed by the condemning authority
      to
      represent Tenant's moving and relocation expense and compensation for loss
      of
      business. Notwithstanding anything contained in this Section 22 to the contrary,
      Tenant may interpose and prosecute in any condemnation proceedings a claim
      for
      the value of any leasehold improvements, trade fixtures or personal property
      paid for and installed by Tenant in the Premises,
      any of
      which were made or installed after the Commencement Date. Tenant shall have
      no
      claim against the Landlord or be entitled to any award or damages other than
      an
      abatement of the rent beyond the period of termination date.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    23. Additional
      Rent and Attorneys' Fees.
      Whenever, under the terms of this Lease, any sum of money is required to be
      paid
      Tenant in addition to the Base Rent herein reserved, whether or not such sum
      is
      herein designated as "Additional
      Rent,"
      or
      provision is made for the collection of such sum as "Additional
      Rent,"
      said
      sum shall, nevertheless, at Landlord's option, if not paid when due, be deemed
      Additional Rent, and shall be collectable as such. In the event of employment
      of
      an attorney either by the Landlord or the Tenant because of the violation of
      any
      Term or provision of this Lease, the Court or arbitrator shall require the
      losing party to pay the other party's reasonable attorneys' fees.

     

    24. Covenant
      to Surrender.
      This
      Lease and the tenancy hereby created shall cease and terminate at the end of
      the
      original Term hereof, without the necessity of any notice of termination from
      either Landlord or Tenant, and Tenant hereby waives notice to remove and agrees
      that Landlord shall be entitled to the benefit of law respecting summary
      recovery of possession of the premises from a Tenant holding over to the same
      extent as if statutory notice was given. 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 one hundred fifty percent (150%)
      of the highest monthly rental installment reserved in this Lease.

     

    25. Quiet
      Enjoyment.
      Landlord
      covenants that, upon the payment of the rent herein provided, and the
      performance by the Tenant of all covenants herein, and provided that no ongoing,
      uncured event of default shall exist, Tenant shall have and hold the premises,
      free from any interference from the Landlord, except as otherwise provided
      for
      herein.

     

    26. Defaults.

    

    (i) In
      case
      of the non-payment of rent or Additional Rent which continues for five (5)
      Business Days after written notice of same, or in case the said Premises are
      deserted, or vacated, the Landlord shall have the right to enter the same by
      operation of law and remove Tenant from premises.

    

    (ii) If
      either
      party believes the other has defaulted hereunder other than with regard to
      a
      matter described in Section 26(i), that party may give written notice to the
      other of such default and request that party within ten (10) days to assess
      and
      pursue with reasonable diligence all steps necessary to remedy the same, subject
      to delays by reason of Force Majeure.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    (iii) The
      Landlord shall have the right after the (i) non-payment of rent within the
      applicable time period provided for herein or (ii) if after the action under
      subsection (b) hereof there remains a default, to re-enter and take possession
      of the Premises without further formal notice if the default has not been
      corrected within said applicable time period (provided that if the Tenant has
      commenced to repair the Premises within said applicable time period as to
      non-monetary defaults and proceeds, with due diligence to complete same, it
      shall not constitute a default), and it is further agreed that notwithstanding
      such re-entry, the Tenant shall remain liable for all rent and other damages
      including, but not limited to, the cost to repair, restore, renovate, or
      decorate the Premises for a new tenant, reasonable attorney's fees, real estate
      commissions, and the cost of any legal actions brought against Tenant and losses
      as of the date of re-entry, and shall further be liable, at the option of the
      Landlord, for the amount of rent reserved under the Lease for the balance of
      the
      term, less any amount of rent received by the 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 reasonable discretion, shall deem proper,
      all
      of which shall be at the risk and expense of the Tenant. In addition, Landlord,
      at its option, shall have the right to repossess the Premises and terminate
      this
      Lease.

    

    (iv) In
      the
      event Landlord terminates this Lease, the Landlord may, without further notice,
      re-enter the Premises and dispossess Tenant, the legal representatives of
      Tenant, or other occupant of the Premises, and remove their effects and hold
      the
      Premises as if this Lease has not been made. The Landlord shall also be entitled
      to the benefit of all provisions of law for the recovery of land and tenements
      held over by Tenant in Baltimore City, Maryland, including the benefit of any
      public, general or local laws relating to the speedy recovery of possession
      of
      lands and tenements held over by lessees in said City in which the Premises
      are
      located, or that may hereafter be enacted.

    

    (v) It
      is
      expressly agreed and understood that the exercise of any one or more of said
      rights shall not be construed as a waiver of any other rights, it being
      understood that all of said rights shall be cumulative and may be exercised
      simultaneously.

     

    27. Notice.
      All
      notices from Tenant to Landlord shall be sent by Registered or Certified Mail,
      Return Receipt Requested, hand delivery or nationally recognized overnight
      delivery service and addressed to:

    

    Henry
      B.
      Glover, Jr.

    The
      Kevin
      F. Donohoe Company, Inc.

    Bell
      Atlantic Tower, Suite 4030

    1717
      Arch
      Street

    Philadelphia,
      Pennsylvania, 19103

    Fax:
      (215) 988-0448

    

    and:

    

    Saul
      E.
      Gilstein, Esquire

    Gallagher
      Evelius & Jones LLP

    218
      N.
      Charles Street, Suite 400

    Baltimore,
      Maryland 21201

    Fax:
      (410) 468-2786

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    After
      occupancy of the demised premises, all notices from Landlord to Tenant shall
      be
      sent by Registered or Certified Mail, Return Receipt Requested, hand delivery,
      or nationally recognized overnight delivery service and addressed to Tenant
      at:

    

    Edward
      M.
      Chait, Ph.D

    Executive
      Vice President

    Bioanalytical
      Systems, Inc.

    2701
      Kent
      Avenue

    West
      Lafayette, Indiana 47906

    Fax:
      (765) 497-1102

    

    and:

    

    Controller

    Bioanalytical
      Systems, Inc.

    2701
      Kent
      Avenue

    West
      Lafayette, IN 47906

    Fax:
      (765) 497-1102

    

    and:

    

    IceMiller
      LLP

    One
      American Square

    Suite
      3100

    Indianapolis,
      IN 46282-0200

    Attention:
      Stephen Hackman, Esq.

    Fax:
      (317) 592-4666

    

    Either
      party may from time to time, designate, in writing, by Notice, a substitute
      address and thereafter all notices shall be sent to such substitute
      address.

     

    28. Other
      Taxes.
      Tenant
      shall assume and pay to Landlord, as Additional Rent, prior to the imposition
      of
      any fine, penalty, interest or costs for the non-payment thereof, all excise,
      sales, gross receipts, or other tax (other than a net income or excess profits
      tax) which may be (i) assessed or imposed on or be measured by such rent or
      other charge which may be treated as rent, or (ii) which may be imposed on
      the
      letting or other transaction for which such tax is payable and which Landlord
      may be required to pay or collect under any law now in effect or hereafter
      enacted by any governmental authority. If such other tax is imposed as
      contemplated by this paragraph, Tenant shall have the sole authority, with
      the
      cooperation of Landlord, to contest and/or appeal such imposition.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    29. Representations.
      Landlord
      or Landlord's agents have made no representations or promises with respect
      to
      the said Building or Premises except as herein expressly set forth.

     

    30. Trial
      by Jury.
      Landlord
      and Tenant do hereby waive trial by jury in any action, proceeding or counter
      claim brought by either of the parties hereto against the other on any matters
      whatsoever arising out of or in any way connected with this Lease, the
      relationship of Landlord and Tenant, Tenant's use or occupancy of the demised
      premises, and/or any claim of injury or damage, and any emergency statutory
      or
      any other statutory remedy.

     

    31. Gender.
      Reference to masculine, feminine or neuter shall include proper gender as the
      case may be. If more than one Tenant is named herein, the obligations of the
      person so named shall be joint and several.

     

    32. Construction
      of Premises.
      To the
      extent possible, Landlord shall make available to Tenant the benefits of all
      warranties and guarantees obtained from contractors, subcontractors, suppliers
      and manufacturers in connection with the construction and subsequent alteration
      and repair of the Premises and appurtenances.

     

    33. Estoppel
      Certificates.
      Landlord
      and Tenant agree that at any time, and from time to time, upon not less than
      seven (7) days prior notice by the other, it will execute, acknowledge, and
      deliver to the other a statement in writing certifying that this Lease is
      unmodified and in full force and effect (or if there have been modifications,
      that the same is in full force and effect as modified, and stating the
      modifications) and the dates to which the rent and other charges have been
      paid
      in advance, if any, and stating whether or not, to the best knowledge of the
      signer of such certificate the other party is in default in the performance
      of
      any covenant, agreement or condition contained in this Lease and, if so,
      specifying each such default of which the signer may have knowledge, it being
      intended that any such statement delivered hereunder may be relied upon by
      any
      third party not a party to this Lease. The form of Tenant Estoppel Certificate
      that Tenant is required to complete is attached as Exhibit
      D.

     

    34. Landlord's
      Liability.
      In any
      action brought to enforce the obligations or liabilities of Landlord under
      this
      Lease, any judgment or decree shall be enforceable against Landlord only to
      the
      extent of Landlord's interest in the Premises, and no such judgment shall be
      the
      basis of execution on, or be a lien on, assets of Landlord other than Landlord's
      interest in the Premises.

     

    35. Hazardous
      Materials.
      Landlord
      accepts that Tenant's business requires use and storage of substances defined
      as
      "Hazardous
      Materials"
      including but not exclusively chemicals, preservatives, drug substances,
      solvents, fuels, insulation, radioactive materials, metals, flammable
      substances, compressed and liquefied gases, biological substances, and medical
      wastes. Unless used, manufactured, released, stored, or disposed of in
      performance of Tenant's business, Tenant, its employees, licensees, invitees,
      agents and contractors shall not use, manufacture, release, store or dispose
      of
      on, under or about the Premises any of the aforementioned substances,
      explosives, asbestos, paint containing lead, materials containing urea
      formaldehyde, polychlorinated biphenyls, or any other hazardous, toxic or
      dangerous substances, wastes or materials, whether having such characteristics
      in fact or defined as such under federal, state or local laws or regulations
      and
      any amendments thereto (all such materials and substances being hereinafter
      included as "Hazardous
      Materials").
      In
      addition to those materials required by Tenant's business, Tenant may store
      products which are of a type customarily found in offices (such as toner for
      copiers and the like). All the aforementioned substances will be used,
      manufactured, released, stored and disposed of in a careful, safe and lawful
      manner and without contaminating the Premises, the Building, the Property or
      the
      environment. If the Tenant breaches the obligations stated in this Section
      35,
      then the Tenant shall indemnify, defend and hold the Landlord harmless from
      and
      against any and all claims, judgments, damages, penalties, fines, costs,
      liabilities or losses (including, without limitation, diminution in value of
      the
      Premises, and the Building generally, damages for the loss or restriction on
      use
      of rentable or usable space or of any amenity of the Building generally, damages
      from any adverse impact on marketing of space in the Building, and sums paid
      in
      settlement of claims, attorneys' fees, consultant fees and expert fees) which
      arise during or after the Term as a result of such contamination. This
      indemnification of the Landlord by the Tenant includes, without limitation,
      costs incurred in connection with any investigation of site conditions or any
      cleanup, remedial, removal or restoration work required by any governmental
      authority because of Hazardous Material present in the Premises or the Building
      generally as a result of Tenant's, its agents, employees contractors, servants,
      licensees, suppliers, or invitees' use of the Premises.

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    36. Security.
      Tenant
      will be allowed to install and maintain its own security system within the
      Premises, at Tenant's sole cost and expense.

     

    37. Broker
      Commission.
      Each
      party hereto hereby represents and warrants to the other that in connection
      with
      the leasing of the Premises hereunder, they have dealt with no brokers, other
      than Manekin, LLC and CB Richard Ellis Real Estate Services, Inc. Landlord
      shall
      pay all brokerage commissions due to the brokers pursuant to a separate
      agreement. Each party hereto shall indemnify the other against any inaccuracy
      in
      such party's representation.

     

    38. Authority.
      If the
      Tenant is a corporation, partnership, limited liability company or similar
      entity, the person executing this Lease on behalf of the Tenant represents
      and
      warrants that (a) the Tenant is duly organized and validly existing and (b)
      this
      Lease (i) has been authorized by all necessary parties, (ii) is validly executed
      by an authorized officer or agent of the Tenant and (iii) is binding upon and
      enforceable against the Tenant in accordance with its terms. Landlord represents
      and warrants that (a) Landlord is duly organized and validly existing and (b)
      this Lease (i) has been authorized by all necessary parties, (ii) is validly
      executed by an authorized officer or agent of the Landlord and (iii) is binding
      upon and enforceable against the Landlord in accordance with its
      terms.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    39. Right
      of First Offer.

    

    (a) Before
      Landlord leases any Available Space (as defined below) to any unrelated third
      party, Landlord will first offer such Available Space to Tenant for lease,
      by
      written notice to Tenant ("Landlord's Offer Notice"). As used in this Section
      39, "Available Space" shall mean and refer to any office space which "becomes
      available" for leasing by the Landlord on the fourth (4th)
      floor
      of the Building following the initial leasing of the Building, from time to
      time
      during the Term. Space shall be deemed to "become available" when the lease
      for
      any current tenant expires or is due to expire and renewal of such lease is
      not
      then available or is otherwise terminated; such space shall not be deemed to
      "become available" if the space is assigned or subleased by the current tenant
      or is re-let by the current tenant by renewal extension, option or
      renegotiation. Landlord's Offer Notice shall specify the rent for Available
      Space (which shall equal the Market Rent for the Available Space, if the space
      is offered for a term beginning after January 1, 2010; or on the same rental
      terms as are being paid for the Premises pursuant to this Lease, with a Tenant
      Improvement Allowance of Fifteen Dollars ($15.00) per rentable square foot
      if
      the space is offered for a term beginning before December 31, 2009), the term
      of
      the lease for such Available Space shall be co-terminus with the Term, and
      all
      other material terms and conditions, including the rent commencement date with
      respect to the Available Space, which date shall be sixty (60) days from the
      date the Available Space is available for Tenant to occupy (all of the foregoing
      collectively, the "Offered Terms") which will apply to the Available Space.
      Tenant will notify Landlord within fifteen (15) days of Landlord's Offer Notice
      that (i) Tenant elects to lease the Available Space on the Offered Terms set
      forth in the Landlord's Offer Notice, or (ii) Tenant elects to lease the
      Available Space on the Offered Terms, but that Tenant disputes Landlord's
      determination of Market Rent set forth in Landlord's Offer Notice. If Tenant
      timely so elects to lease the Available Space on the Offered Terms, but disputes
      Landlord's determination of Market Rent for the Available Space, and the parties
      do not agree on the Market Rent within twenty (20) days after delivery of such
      notice from Tenant, then Tenant may initiate the procedure set forth in Section
      1(c) hereof to determine the Market Rent by giving notice to Landlord within
      an
      additional ten (10) days after the end of such twenty (20) day period. If Tenant
      fails to timely submit the dispute for arbitration within such period, then
      Landlord's determination of Market Rent shall be binding on the parties.
      Landlord and Tenant shall, within fifteen (15) Business Days after receipt
      of
      reasonable draft documentation from Landlord, execute an amendment to this
      Lease
      incorporating the Available Space into the Premises upon the Offered Terms
      contained in Landlord's Offer Notice or the determined Market Rent (as the
      case
      may be), and otherwise on substantially the same terms and conditions as
      contained in this Lease.

     

    (b) Notwithstanding
      any contrary provision of this Section 39 or any other provision of this Lease,
      any exercise by Tenant of its right to lease Available Space shall be void
      and
      of no effect unless on the date Tenant notifies Landlord that it elects to
      lease
      Available Space and on the commencement date of the amendment for the Available
      Space (i) this Lease is in full force and effect, and (ii) no Event of Default
      has occurred under this Lease which remains continuing and uncured after
      applicable notice and cure periods, and (iii) the originally named Tenant is
      occupying the entire Premises for the conduct of its business.

    

    

    [Signature
      Page Follows]

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the parties hereto, by the properly authorized persons and
      with
      an intention to sign under seal, have duly executed this Lease the day and
      year
      first above written.

     

    
      	WITNESS
              or ATTEST:	LANDLORD:
               

              300
                W. FAYETTE STREET, LLC,

              a
                Delaware limited liability company

            
	 	 	 	 	 
	 	
              By:

               

            	
              KFD
                Fayette Street, LLC, 

              a
                Delaware limited liability company,

              its
                Managing Member 

            
	 	 	 	 	 
	 	 	
              By: 

            	
              The
                Kevin F. Donohoe Company, Inc.

              a
                Pennsylvania corporation,

              its
                Managing Member 

            
	 	 	 	 	 
	
                   
/s/
                Jayne
                Caggiano              
                

            	
            	
            	
              By:

            	
                   
                /s/ Henry B. Glover, Jr.       
                

              
                Henry
                  B. Glover, Jr.

                Vice
                  President

              

            
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
              WITNESS
                or ATTEST:

               

               

               

                            /s/
                L.
                Colby                        
                

            	
              TENANT:

               

              BIOANALYTICAL
                SYSTEMS, INC.

               

               

              By:     
                 /s/
                Edward M.
                Chait                 
                          

              Name: Edward
                M. Chait

              Title:  
                Executive
                Vice President

            

    

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    STATE
      OF
      MARYLAND; CITY/COUNTY OF ___________, TO WIT:

    

    I
      HEREBY
      CERTIFY that on this ____ day of _____________ 2007, before me, the undersigned
      Notary Public of the state and county aforesaid, personally appeared
      ______________________ who acknowledged himself to be the ____________ of 300
      W.
      Fayette Street, LLC, and that he, being authorized so to do executed the
      foregoing instrument for the purposes and in the capacity therein
      contained.

    

    WITNESS
      my hand and Notarial Seal.

    

    

    
      	 	
               

              _______________________________(SEAL)

              Notary
                Public

              My
                commission expires: _____________________  

            

    

    

    

    STATE
      OF
      INDIANA; CITY/COUNTY OF TIPPECANOE, TO WIT:

    

    I
      HEREBY
      CERTIFY that on this __ day of ___________ 2007 before me, the undersigned
      Notary Public of the state and county aforesaid, personally appeared
      _________________ who acknowledged himself to be the __________________ of
      Bioanalytical Systems, Inc., and that he, being authorized so to do executed
      the
      foregoing instrument for the purposes and in the capacity therein
      contained.

    

    WITNESS
      my hand and Notarial Seal.

    
      	 	
               

              _______________________________(SEAL)

              Notary
                Public

              My
                commission expires:
                _____________________

            

    

    

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    
 

    EXHIBIT
      A

    

    PREMISES
      DESCRIPTION

    

    

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      A

    

    Beginning
      for the same at a point formed by the
      intersection of the West side of Kimmel Alley (10 feet wide)
      and
      the North side of West Fayette Street (66 feet wide), thence binding on the
      North side of said West Fayette Street 1) South 87 degrees 13 minutes 57 seconds
      West 89.02 feet, thence leaving the said West Fayette Street and binding
      reversely along the East and North sides (Lines 3A through 3F and 4) of Parcel
      Four described in a Confirmatory Deed dated January 28, 2003 conveyed by of
      Fayette Garage, LLC unto Fayette Garage, LLC recorded among the Land Records
      of
      Baltimore City in Liber 3337 Folio 131 the seven following courses and
      distances: 2) North 2 degrees 36 minutes 08 seconds West 86.37 feet; 3) South
      87
      degrees 19 minutes 20 seconds West 20.08 feet; 4) North 2 degrees 58 minutes
      10
      seconds West 1.05 feet; 5) South 87 degrees 32 minutes 03 seconds West 20.22
      feet; 6) North 3 degrees 04 minutes 17 seconds West 19.73 feet; 7) North 88
      degrees 08 minutes 16 seconds East 3.86 feet; 8) North 2 degrees 51 minutes
      58
      seconds West 49.20 feet; to the South side of Marion Street (20 feet wide);
      thence binding on the South side of said Marion Street; 9) North 87 degrees
      05
      minutes 42 seconds West 125.10 feet to an intersection formed by the South
      side
      of said Marion Street and the West side of the aforementioned Kimmel Alley;
      thence binding on the West side of said Kimmel Alley; 10) South 2 degrees 59
      minutes 28 seconds East 156.73 feet to the place of beginning, containing 16,514
      square feet or 0.3791 acres of land more or less.

    

    TOGETHER
      WITH all right, title and interest in and to the six story overhead bridge
      or
      passageway and subterranean tunnel extending from the north outline of the
      hereinabove described parcel of land northerly crossing Marion
      Street;

    

    TOGETHER
      WITH the rights and benefits set forth in Liber SEB 428, folio 378 and Liber
      SEB
      1109, folio 105; and

    

    TOGETHER
      WITH the rights and benefits set forth in Liber SEB 428, folio 326.

    

    AND
      BEING
      the same property conveyed by Deed, dated February 1, 1985 from the Mayor and
      City Council of Baltimore to Pharmakinetics, Inc. and recorded among the Land
      Records of Baltimore City in Liber SEB 429, folio 462.
      Said
      Pharmakinetics, Inc. was corrected to read Pharmakinetics Laboratories, Inc.
      in
      a Confirmatory Deed, dated December 17, 1985 and recorded in Liber 1109, folio
      101.

    

    AND
      BEING
      the same property conveyed by Deed and Consent, dated December 10, 1986 from
      Pharmakinetics Laboratories, Inc. to PKLB Limited Partnership and recorded
      in
      Liber 1109. folio 117.

    

    

    First
      American Title Insurance Company

     

    
      
        
        

      

      
        A-2

        
          

        

      

      
        
        

      

    

     

     

    EXHIBIT
      B

    

    SUBORDINATION,
      ATTORNMENT AND NON-DISTURBANCE AGREEMENT

     

     

    
      
        
        

      

      
        B-1

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      B

    

    Last
      Revised 12-31-02

    Loan
      Number: ____________

    

    RECORDING
      REQUESTED BY AND

    AFTER
      RECORDING, RETURN TO:

    

    GMAC
      Commercial Mortgage Corporation

    200
      Witmer Road

    Horsham,
      PA 19044-8015

    Attn:
      Servicing - Executive Vice President

     

     

    
      
        

      

    

    SPACE
      ABOVE THIS LINE RESERVED FOR RECORDER'S USE

    

    SUBORDINATION,
      NON-DISTURBANCE

    AND
      ATTORNMENT AGREEMENT

    

    This
      Subordination, Non-Disturbance and Attornment Agreement ("Agreement"),
      is
      made as of this _____ day of ____________, 200__ among GMAC COMMERCIAL MORTGAGE
      CORPORATION, a California corporation ("Lender"),
      ______________, a ____________________ ("Landlord"),
      and
      ____________________, a ___________________ ("Tenant").

    

    BACKGROUND

    

    A. Lender
      has agreed to make a loan to Landlord in the original principal amount
      $___________ ("Loan"),
      which
      will be secured by a mortgage, deed of trust or similar security instrument
      (either, "Security
      Instrument")
      on
      Landlord's property described more particularly on Exhibit
      A
      attached
      hereto ("Property").

    

    B. Tenant
      is
      the present lessee under that certain lease agreement between Landlord and
      Tenant dated __________________, as thereafter modified and supplemented
      ("Lease"),
      demising a portion of the Property described more particularly in the Lease
      ("Leased
      Space").

    

    C. A
      requirement of the Loan is that Tenant's Lease be subordinated to the Security
      Instrument. Landlord has requested Tenant to so subordinate the Lease in
      exchange for Lender's agreement not to disturb Tenant's possession of the Leased
      Space upon the conditions set forth in this Agreement.

    

    NOW,
      THEREFORE, in consideration of the mutual promises of this Agreement, and
      intending to be legally bound hereby, the parties hereto agree as
      follows:

    

    1. Subordination.
      Tenant
      agrees that the Lease, and all estates, options and rights created under the
      Lease, hereby are subordinated and made subject to the lien and effect of the
      Security Instrument, as if the Security Instrument had been executed and
      recorded prior to the Lease.

     

    
      
        
        

      

      
        B-2

        
          

        

      

      
        
        

      

    

     

    
      Last
        Revised 12-31-02

      Loan
        Number: ____________

    

     

    2. Nondisturbance.
      Lender
      agrees that no foreclosure (whether judicial or nonjudicial), deed-in-lieu
      of
      foreclosure, or other sale of the Property in connection with enforcement of
      the
      Security Instrument or otherwise in satisfaction of the Loan shall operate
      to
      terminate the Lease or Tenant's rights thereunder to possess and use the Leased
      Space provided,
      however,
      that
      (a) the term of the Lease has commenced, (b) Tenant is in possession of the
      Leased Space, and (c) the Lease is in full force and effect and no uncured
      default exists under the Lease.

    

    3. Attornment.
      Tenant
      agrees to attorn to and recognize as its landlord under the Lease each party
      acquiring legal title to the Property by foreclosure (whether judicial or
      nonjudicial) of the Security Instrument, deed-in-lieu of foreclosure, or other
      sale in connection with enforcement of the Security Instrument or otherwise
      in
      satisfaction of the Loan ("Successor
      Owner").
      Provided that the conditions set forth in Section 2 above are met at the time
      Successor Owner becomes owner of the Property, Successor Owner shall perform
      all
      obligations of the landlord under the Lease arising from and after the date
      title to the Property is transferred to Successor Owner. In no event, however,
      will any Successor Owner be: (a) liable for any default, act or omission of
      any
      prior landlord under the Lease; (b) subject to any offset or defense which
      Tenant may have against any prior landlord under the Lease; (c) bound by any
      payment of rent or additional rent made by Tenant to Landlord more than 30
      days
      in advance; (d) bound by any modification or supplement to the Lease, or waiver
      of Lease terms, made without Lender's written consent thereto; (e) liable for
      the return of any security deposit or other prepaid charge paid by Tenant under
      the Lease, except to the extent such amounts were actually received by Lender,
      (f) liable or bound by any right of first refusal or option to purchase all
      or
      any portion of the Property; or (g) liable for construction or completion of
      any
      improvements to the Property or as required under the Lease for Tenant's use
      and
      occupancy (whenever arising). Although the foregoing provisions of this
      Agreement are self-operative, Tenant agrees to execute and deliver to Lender
      or
      any Successor Owner such further instruments as Lender or a Successor Owner
      may
      from time to time request in order to confirm Agreement. If any liability of
      Successor Owner does arise pursuant to this Agreement, such liability shall
      be
      limited to Successor Owner's interest in the Property. 

    

    4. Rent
      Payments; Notice to Tenant Regarding Rent Payments.
      Tenant
      agrees not to pay rent more than one (1) month in advance unless otherwise
      specified in the Lease. After notice is given to Tenant by Lender that Landlord
      is in default under the Security Instrument and that the rentals under the
      Lease
      are to be paid to Lender directly pursuant to the assignment of leases and
      rents
      granted by Landlord to Lender in connection therewith, Tenant shall thereafter
      pay to Lender all rent and all other amounts due or to become due to Landlord
      under the Lease. Landlord hereby expressly authorizes Tenant to make such
      payments to Lender upon reliance on Lender's written notice (without any inquiry
      into the factual basis for such notice or any prior notice to or consent from
      Landlord) and hereby releases Tenant from all liability to Landlord in
      connection with Tenant's compliance with Lender's written
      instructions.

    

    5. Lender
      Opportunity to Cure Landlord Defaults.
      Tenant
      agrees that, until the Security Instrument is released by Lender, it will not
      exercise any remedies under the Lease following a Landlord default without
      having first given to Lender (a) written notice of the alleged Landlord default
      and (b) the opportunity to cure such default within the longer of (i) 30 days
      after the cure period provided under the Lease to Landlord, (ii) 30 days from
      Landlord's receipt of Tenant's notice to Lender of a Landlord default, or (iii)
      if the cure of such default requires possession of the Property, 30 days after
      Lender has obtained possession of the Property; provided that, in each case,
      if
      such default cannot reasonably be cured within such 30-day period and Lender
      has
      diligently commenced to cure such default promptly within the time contemplated
      by this Agreement, such 30-day period shall be extended for so long as it shall
      require Lender, in the exercise of due diligence, to cure such default, but,
      unless the parties otherwise agree, in no event shall the entire cure period
      be
      more than 120 days. Tenant acknowledges that Lender is not obligated to cure
      any
      Landlord default, but if Lender elects to do so, Tenant agrees to accept care
      by
      Lender as that of Landlord under the Lease and will not exercise any right
      or
      remedy under the Lease for a Landlord default. Performance rendered by Lender
      on
      Landlord's behalf is without prejudice to Lender's rights against Landlord
      under
      the Security Instrument or any other documents executed by Landlord in favor
      of
      Lender in connection with the Loan.

     

    
      
        
        

      

      
        B-3

        
          

        

      

      
        
        

      

    

     

    
      Last
        Revised 12-31-02

      Loan
        Number: ____________

    

     

    6. Miscellaneous.

    

    (a) Notices.
      All
      notices and other communications under this Agreement are to be in writing
      and
      addressed as set forth below such party's signature hereto. Default or demand
      notices shall be deemed to have been duly given upon the earlier of: (i) actual
      receipt; (ii) one (1) business day after having been timely deposited for
      overnight delivery, fee prepaid, with a reputable overnight courier service,
      having a reliable tracking system; (iii) one (1) business day after having
      been
      sent by telecopier (with answer back acknowledged) provided an additional notice
      is given pursuant to (ii); or (iv) three (3) business days after having been
      deposited in any post office or mail depository regularly maintained by the
      U.S.
      Postal Service and sent by certified mail, postage prepaid, return receipt
      requested, and in the case of clause (ii) and (iv) irrespective of whether
      delivery is accepted. A new address for notice may be established by written
      notice to the other parties; provided, however, that no address change will
      be
      effective until written notice thereof actually is received by the party to
      whom
      such address change is sent.

    

    (b) Entire
      Agreement; Modification.
      This
      Agreement is the entire agreement between the parties hereto with respect to
      the
      subject matter hereof, and supersedes and replaces all prior discussions,
      representations, communications and agreements (oral or written). This Agreement
      shall not be modified, supplemented, or terminated, nor any provision hereof
      waived, except by a written instrument signed by the party against whom
      enforcement thereof is sought, and then only to the extent expressly set forth
      in such writing.

    

    (c) Binding
      Effect; Joint and Several Obligations.
      This
      Agreement is binding upon and inures to the benefit of the parties hereto and
      their respective heirs, executors, legal representatives, successors, and
      assigns, whether by voluntary action of the parties or by operation of law.
      No
      Indemnitor may delegate or transfer its obligations under this
      Agreement.

     

    
      
        
        

      

      
        B-4

        
          

        

      

      
        
        

      

    

    
       

      Last
        Revised 12-31-02

      Loan
        Number: ____________

    

     

    (d) Unenforceable
      Provisions.
      Any
      provision of this Agreement which is determined by a court of competent
      jurisdiction or government body to be invalid, unenforceable or illegal shall
      be
      ineffective only to the extent of such determination and shall not affect the
      validity, enforceability or legality of any other provision, nor shall such
      determination apply in any circumstance or to any party not controlled by such
      determination.

    

    (e) Duplicate
      Originals; Counterparts.
      This
      Agreement may be executed in any number of duplicate originals, and each
      duplicate original shall be deemed to be an original. This Agreement (and each
      duplicate original) also may be executed in any number of counterparts, each
      of
      which shall be deemed an original and all of which together constitute a fully
      executed Agreement even though all signatures do not appear on the same
      document.

    

    (f) Construction
      of Certain Terms.
      Defined
      terms used in this Agreement may be used interchangeably in singular or plural
      form, and pronouns shall be construed to cover all genders. Article and section
      headings are for convenience only and shall not be used in interpretation of
      this Agreement. The words "herein," "hereof" and "hereunder" and other words
      of
      similar import refer to this Agreement as a whole and not to any particular
      section, paragraph or other subdivision; and the word "section" refers to the
      entire section and not to any particular subsection, paragraph of other
      subdivision; and "Agreement"
      and
      each of the Loan Documents referred to herein mean the agreement as originally
      executed and as hereafter modified, supplemented, extended, consolidated, or
      restated from time to time.

    

    (g) Governing
      Law.
      This
      Agreement shall be interpreted and enforced according to the laws of the State
      where the Property is located (excluding any choice of law rules that may direct
      the application of the laws of another jurisdiction).

    

    (h) Consent
      to Jurisdiction.
      Each
      party hereto irrevocably consents and submits to the exclusive jurisdiction
      and
      venue of any state or federal court sitting in the county and state where the
      Property is located with respect to any legal action arising with respect to
      this Agreement and waives all objections which it may have to such jurisdiction
      and venue.

    

    (i) WAIVER
      OF JURY TRIAL.
      TO THE FULLEST EXTENT PERMITTED BY LAW, EACH PARTY HERETO WAIVES AND AGREES
      NOT
      TO ELECT A TRIAL BY JURY WITH RESPECT TO ANY ISSUE ARISING OUT OF THIS
      AGREEMENT.

    

    [Remainder
      of page is blank; signatures appear on next page.]

     

    
      
        
        

      

      
        B-5

        
          

        

      

      
        
        

      

    

     

    
      Last
        Revised 12-31-02

      Loan
        Number: ____________

       

    

    IN
      WITNESS WHEREOF,
      this
      Agreement is executed this _____ day of ______________ 200_.

    

     

    
      	
              LENDER; 

              

              GMAC
                Commercial Mortgage Corporation 

              
 

              By:
                ________________________________ 

              Name: 

              Title: 

              

              Lender
                Notice Address: 

              

              GMAC
                Commercial Mortgage Corporation 

              200
                Witmer Road 

              Horsham,
                PA 19044 

              Attn:
                Servicing - Executive Vice President 

            	
              TENANT:

               

               

              ___________________________________

              [insert Tenant's name]

               

               

              By: ________________________________

              Name:

              Title:

               

               

              Tenant Notice Address:

               

               

              ___________________________________

              ___________________________________

              ___________________________________

              Attn:

            

    

     

    [Execution
      by Landlord appears on next page.]

    

    ____________________________________

    [insert
      Landlord's name]

    

    

    By:
      _________________________________

    Name:

    Title:

    

    Landlord
      Notice Address:

    

    ____________________________________

    ____________________________________

    ____________________________________

    Attn:

    

    Attach:
      Exhibit A - Legal Description of the Property

    

    
      
        
        

      

      
        B-6

        
          

        

      

      
        
        

      

    

     

    
      Last
        Revised 12-31-02

      Loan
        Number: ____________

    

     

    Notary
      Acknowledgement for Lender:

     

    
      	
              State
                of ________________

            	
              )

            	 
	 	) ss	 
	
              County
                of ______________ 

            	
              ) 

            	 

    

    

    On
      this,
      the ______ day of _______________, 200__, before me, the undersigned Notary
      Public, personally appeared _________________________ known to me (or
      satisfactorily proven) to be the person whose name is subscribed to the within
      instrument, and who acknowledged to me that he/she is an officer of GMAC
      Commercial Mortgage Corporation in the capacity stated and that he/she executed
      the within instrument in such capacity for the purposes therein
      contained.

    

    IN
      WITNESS WHEREOF, I have hereunto set my hand and official seal.

    

     

    Notary
      Public

    

    Notary
      Acknowledgement for Tenant:

     

    
       

      
        	
                State
                  of ________________

              	
                )

              	 
	 	) ss	 
	
                County
                  of ______________ 

              	
                ) 

              	 

      

       

    

    On
      this,
      the _____ day of _______________, 200__, before me, the undersigned Notary
      Public, personally appeared _____________________________________ known to
      me
      (or satisfactorily proven) to be the person whose name is subscribed to the
      within instrument and who acknowledged to me that he/she is an officer of the
      Tenant in the capacity stated and that he/she executed the within instrument
      in
      such capacity for the purposes therein contained.

    

    IN
      WITNESS WHEREOF, I have hereunto set my hand and official seal.

     

    
      
        
        

      

      
        B-7

        
          

        

      

      
        
        

      

       

      
        Last
          Revised 12-31-02

        Loan
          Number: ____________

      

       

    

    Notary
      Public

    

    Notary
      Acknowledgement for Landlord:

    
       

      
        	
                State
                  of ________________

              	
                )

              	 
	 	) ss	 
	
                County
                  of ______________ 

              	
                ) 

              	 

      

       

    

    On
      this,
      the _____ day of ______________, 200__, before me, the undersigned Notary
      Public, personally appeared, __________________________________________ known
      to
      me (or satisfactorily proven) to be the person whose name is subscribed to
      the
      within instrument and who acknowledged to me that he/she is an officer of the
      Landlord in the capacity stated and that he/she executed the within instrument
      in such capacity for the purposes therein contained.

    

    IN
      WITNESS WHEREOF, I have hereunto set my hand and official seal.

     

     

    
      	 	
            
	 	Notary
              Public 

    

     

    
      
        
        

      

      
        B-8

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      C

    

    RULES
      AND
      REGULATIONS OF LANDLORD

    

    1. Definitions.
      Wherever in these Rules and Regulations the word "Tenant"
      is
      used, it shall be taken to apply to and include the Tenant and his agents,
      employees, invitees, licensees, subtenants and contractors, and is to be deemed
      of such number and gender as the circumstances require. The word "room"
      is to
      be taken to include the space covered by Lease. The word "Landlord"
      shall
      be taken to include the employees and agents of Landlord.

    

    2. Obstruction.
      The
      streets, parking areas, sidewalks, entrances, lobbies, halls, passages,
      elevators, stairway and other common areas provided by Landlord shall not be
      obstructed by Tenant, or used by him for any other purpose than for ingress
      and
      egress.

    

    3. Washrooms.
      Toilet
      rooms, water-closets and other water apparatus shall not be used for any purpose
      other than those for which they were constructed.

    

    4. Insurance
      Regulations.
      Tenant
      shall not do anything in the rooms, or bring or keep anything therein, which
      will in any way increase or tend to increase the risk of fire or the rate of
      fire insurance, or which will conflict with the regulations of the Fire
      Department or the fire laws, or with any insurance policy on the Building or
      any
      part thereof, or with any law, ordinance, rule or regulation affecting the
      occupancy and use of the rooms, now existing or hereafter enacted or promulgated
      by any public authority or by the Board of Fire Underwriters.

    

    5. General
      Prohibitions.
      In
      order to insure proper use and care of the Premises Tenant shall
      not:

    

    
      	 	
              (a)

            	
              Allow
                any sign, advertisement or notice to be fixed to the Building, inside
                or
                outside, without Landlord's consent. Signs on interior glass doors
                will be
                painted only by the person approved by Landlord, the cost of the
                painting
                to be paid by Tenant.

            

    

    

    
      	 	
              (b)

            	
              Make
                improper noises or disturbances of any kind; sing, play or operate
                any
                musical instrument, radio or television without consent of Landlord,
                or
                otherwise do anything to disturb other tenants or tend to injure
                the
                reputation of the Building.

            

    

    

    
      	 	
              (c)

            	
              Mark
                or defile elevators, water-closets, toilet rooms, walls, windows,
                doors or
                any other part of the Building.

            

    

    

    
      	 	
              (d)

            	
              Place
                anything on the outside of the Building, including roof setbacks,
                window
                ledges and other; projections; or drop anything from the windows,
                stairways or parapets; or place trash or other matter in the halls,
                stairways, elevators or light wells of the
                Building.

            

    

     

    
      
        
        

      

      
        C-1

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (e)

            	
              Cover
                or obstruct any window, skylight, doors or transom that admits light
                unless such obstruction is required by Tenant's
                business.

            

    

    

    
      	 	
              (f)

            	
              Fasten
                any article, drill holes, drive nails or screws into the walls, floors,
                woodwork or partitions; nor shall the same be painted, papered or
                otherwise covered or in any way marked or broken without consent
                of
                Landlord.

            

    

    

    
      	 	
              (g)

            	
              Interfere
                with the heating or cooling apparatus without Landlord's
                consent.

            

    

    

    
      	 	
              (h)

            	
              Allow
                anyone but Tenant's and Landlord's employees or contractors to clean
                rooms.

            

    

    

    
      	 	
              (i)

            	
              Leave
                the rooms without locking doors.

            

    

    

    
      	 	
              (j)

            	
              Install
                any awnings without consent of
                Landlord.

            

    

    

    
      	 	
              (k)

            	
              Use
                any electric heating device without permission of Landlord, unless
                required by Tenant's business.

            

    

    

    
      	 	
              (l)

            	
              Install
                call boxes, or any kind of wire in or on the Building without Landlord's
                permission and direction.

            

    

    

    
      	 	
              (m)

            	
              Place
                any weights in any portion of the Building beyond the safe carrying
                capacity of the structure.

            

    

    

    6. Publicity.
      Tenant
      shall not use the name of the Building in any way in connection with his
      business except as the address thereof. Landlord shall also have the right to
      prohibit any advertising by Tenant, which, in its opinion, tends to impair
      the
      reputation of the Building or its desirability as a building for offices; unless
      such advertising, such as clinical study volunteer recruitment, is crucial
      to
      performance of Tenant's business.

    

    7. Movement
      of Equipment.
      Landlord reserves the right to designate the time when and the method whereby
      freight, small office equipment, furniture, safes and other like articles may
      be
      brought into, moved or removed from the Building or rooms, and to designate
      the
      location for temporary disposition of such items.

    

    8. Regulation
      Changes.
      Landlord shall have the right to make such other and further reasonable rules
      and regulations as in the judgment of Landlord, may from time to time be needful
      for the safety, appearance, care and cleanliness of the Building and for the
      preservation of good order therein. Landlord shall not be responsible to Tenant
      for any violation of rules and regulations by other tenants.

    

    9. Public
      Entrance.
      Landlord reserves the right to exclude the general public from the Building
      upon
      such days and at such hours as in Landlord's judgment will be for the best
      interest of the Building and its tenants. Persons entering the Building after
      6:00 p.m. on Business Days and at all times on weekends and holidays may be
      required to properly identify themselves to building attendants.

     

    
      
        
        

      

      
        C-2

        
          

        

      

      
        
        

      

    

     

    10. Waste
      Disposal.
      Tenant
      shall dispose of all medical/dental waste and containers directly through the
      hiring of an appropriate third party disposal company(ies) and in accordance
      with all applicable laws, ordinances and regulations. Tenant agrees to keep
      all
      containers within its space not visible from the common area.

    

    
      
        
        

      

      
        C-3

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      D

    

    FORM
      ESTOPPEL CERTIFICATE

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      D

    

    Last
      Revised 3-05-03

    Loan
      Number: _________________

    

    TENANT
      ESTOPPEL CERTIFICATE

    

    

    Tenant
      Name:
      ______________________________________________________________________________________________________________

    

    Landlord
      Name:
      _____________________________________________________________________________________________________________

    

    Mortgaged
      Property:
      _________________________________________________________________________________________________________

    

    Tenant's
      Leased Space In Mortgaged Property:

    Address/Suite#
      ______________________________________________________________________________________________________

    Total
      Square Footage: _____________ Description of Operations:
      _______________________________________________________________

    ____________________________________________________________________________________________________

    

    Landlord
      requests Tenant to complete this Certificate for the benefit of GMAC Commercial
      Mortgage Corporation (together with its successors and assigns, "Lender")
      in
      connection with a pending loan ("Loan")
      which
      Lender may make to Landlord. The Loan will be secured by a mortgage or deed
      of
      trust on the Mortgaged Property.

    

    TENANT
      STATEMENTS ABOUT ITS LEASE

    

    Unless
      otherwise stated by Tenant in Item 19 below, Tenant confirms to
      Lender:

    

    
      	
              1.

            	
              An
                accurate and complete copy of Tenant's lease agreement ("Lease")
                is attached as Schedule
                A.
                The Lease is in full force and effect, and no other agreements (verbal
                or
                written) modify or supplement the Lease or Tenant's rights with respect
                to
                the Leased Space. Tenant has not assigned, sublet, encumbered, or
                otherwise transferred all or any part of Tenant's Leased Space or
                the
                Lease. To the best of Tenant's knowledge, no rental or leasing commission
                remain unpaid with respect to the
                Lease.

            

    

    

    
      	
              2.

            	
              Tenant
                currently (a) is the sole tenant and occupant of the Leased Space,
                (b) has
                unconditionally accepted full possession of the Leased Space, and
                (c) is
                open for business and operating from the Leased Space. All tenant
                improvements to be constructed as a condition to the Lease have been
                completed to Tenant's satisfaction, and no un-reimbursed construction
                or
                fit-up allowances are due to Tenant. No damage to the Leased Space
                exists
                which has not been repaired to Tenant's satisfaction. All common
                areas of
                the Mortgaged Property (including, without limitation, parking areas,
                sidewalks, access ways and landscaping) are in compliance with the
                Lease
                and are satisfactory for Tenant's
                purposes.

            

    

    

    
      	
              3.

            	
              The
                Lease is [_____] or is not [____] guaranteed. A copy of each guaranty
                is
                attached as Schedule
                B.

            

    

     

    
      
        
        

      

      
        D-1

        
          

        

      

      
        
        

      

    

     

    
      Last
        Revised 3-05-03

      Loan
        Number: _________________

    

     

    
      	
              4.

            	
              No
                default by Landlord or by Tenant currently exists under the Lease.
                No
                event or condition exists which would be an event of default under
                the
                Lease if notice had been given or applicable grace/cure periods had
                expired (or both). Tenant has no setoffs, credits, claims or defenses
                to
                Tenant's obligation to pay rent or other charges to be paid under
                the
                Lease (including, without limitation, common maintenance charges)
                or to
                enforcement of the Lease. Tenant has not given Landlord any notice
                of
                termination of the Lease.

            

    

    

    
      	
              5.

            	
              The
                current lease term began on _____________________, and the rent
                commencement date, if different, began on _________________. The
                current
                lease term ends on _____________________. Tenant has no option to
                terminate the Lease prior to such
                date.

            

    

    

    
      	
              6.

            	
              Tenant
                has the option to extend the term of the Lease for _______ renewal
                periods. Each renewal offers a term of ___________ months. Tenant
                has not
                exercised any renewal option as of the date
                hereof.

            

    

    

    
      	
              7.

            	
              Tenant
                has none of the following rights: Right to expand the Leased Space;
                right
                to relocate the Leased Space; right of first refusal (offer) with
                respect
                to any other space in the Mortgaged Property; or option or right
                of first
                refusal (offer) to purchase the Mortgage
                Property.

            

    

    

    
      	
              8.

            	
              Tenant's
                current share of common expenses is
                _______%.

            

    

    

    
      	
              9.

            	
              Tenant's
                last payment of base rent in the amount of $____________ was paid
                on
                __________________, and Tenant's last payment of its share of common
                expenses in the amount of $____________ was paid on _____________________.
                No other advance rent has been paid by
                Tenant.

            

    

    

    
      	
              10.

            	
              Tenant
                has paid Landlord a security deposit in the amount of $______________.
                No
                portion of the security deposit has been applied by Landlord toward
                Tenant's obligations under the
                Lease.

            

    

    

    
      	
              11.

            	
              All
                rent-free periods or rent concessions provided under the Lease have
                expired, and no rent concession will become effective during the
                remainder
                of the Lease.

            

    

    

    
      	
              12.

            	
              No
                bankruptcy, reorganization, insolvency or similar proceedings under
                any
                state or federal law has commenced or is currently proceeding in
                which
                Tenant is the debtor.

            

    

    

    
      	
              13.

            	
              Tenant
                has all licenses and permits which Tenant must have to operate its
                business from the Leased Space, and all are current and have not
                been
                revoked.

            

    

    

    
      	
              14.

            	
              Since
                taking possession of the Leased Space, Tenant has not received any
                notice
                that the Leased Space or Tenant's use of the Leased Space violates
                any
                applicable law, regulation, ordinance or directive of any governmental
                authority or agency or insurance
                company.

            

    

     

    
      
        
        

      

      
        D-2

        
          

        

      

      
        
        

      

    

     

    
      Last
        Revised 3-05-03

      Loan
        Number: _________________

    

     

    
      	
              15.

            	
              Since
                taking possession of the Leased Space, Tenant has not stored, generated,
                manufactured, refined, treated, transported, disposed or in any way
                used
                materials which are considered hazardous substances or wastes under
                applicable environmental laws and regulations (including, without
                limitation, petroleum or petroleum by-products) at the Leased Space
                or on
                any other part of the Mortgaged Property, except for de minimus
                quantities incidental to the cleaning or operation of Tenant's
                business.

            

    

    

    
      	
              16.

            	
              Tenant
                is not identified on the list of specially designated nationals and
                blocked persons subject to financial sanctions that is maintained
                by the
                U.S. Treasury Department, Office of Foreign Assets Control and any
                other
                similar list maintained by the Office of Foreign Assets Control pursuant
                to any authorizing United States law, regulation or Executive Order
                of the
                President of the United States ("OFAC
                List")
                nor is Tenant subject to trade embargo or economic sanctions pursuant
                to
                any authorizing United States law, regulation or Executive Order
                of the
                President of the United States.

            

    

    

    
      	
              17.

            	
              Tenant
                understands that a condition of the Loan may require Lender's consent
                to
                any future amendment, waiver, expansion or renewal (except for expansion
                or renewal rights currently permitted to Tenant by the express terms
                of
                the Lease), and no modification, waiver, expansion or renewal made
                without
                Lender's written consent will be enforceable against
                Landlord.

            

    

    

    
      	
              18.

            	
              Tenant
                understands that a condition of the Loan will prohibit Landlord from
                accepting Tenant's rent more than 30 days prior to its due date,
                and no
                payment of rent by Tenant more than 30 days in advance will be binding
                on
                Lender.

            

    

    

    
      
        
          	19.	
                  Listed
                    below (or on Schedule C attached hereto by Tenant) are any exceptions
                    asserted by Tenant to the foregoing statements 1-18. (Lender
                    has no
                    obligation to address Tenant's exceptions in connection with
                    the Loan):
                    _______________________________________

                  
                    

                    

                    

                    

                    

                  

                

        

      

    

    BY
      SIGNING BELOW:

    

    
      	
              •

            	
              Tenant
                certifies that all information stated in this Certificate is accurate
                and
                correct in all material respects and does not omit any material fact
                that
                would make any statement false or misleading and that the undersigned
                representative is duly authorized to sign this Certificate on Tenant's
                behalf.

            

    

    

    
      	
              •

            	
              Tenant
                agrees for a period of thirty (30) days from the date hereof to notify
                Landlord and Lender in writing of any changes to the statements made
                by
                Tenant in this Certification promptly upon Tenant's learning of each
                such
                change.

            

    

     

    
      
        
        

      

      
        D-3

        
          

        

      

      
        
        

      

    

     

    
      Last
        Revised 3-05-03

      Loan
        Number: _________________

    

    
 

    
      	 	Tenant:
	 	 
	 	 
	Date:
              _________________________	
              By:
                _______________________________________

              Name:

              Title:

            

    

     

    

    BY
      SIGNING BELOW, Landlord certifies that the information disclosed by Tenant
      is
      accurate and complete in all material respects and does not omit any material
      fact that would make any statement false or misleading and that the undersigned
      representative is duly authorized to sign this Certificate on Landlord's
      behalf.

    
 

    
      
        	 	Landlord:
	 	 
	 	 
	Date:
                _________________________	
                By:
                  _______________________________________

                Name:

                Title:

              

      

       

    

    

    
      	ATTACH:	
              Complete
                copy of lease as Schedule A.

              Complete copy of each
                Guaranty as
                Schedule B.

            

    

     

    

    
      
        
        

      

      
        D-4LIXTE
      BIOTECHNOLOGY HOLDINGS, INC

     

    STOCK
      COMPENSATION PLAN

     

    Section
      1. Purpose

     

    The
      purpose of this Stock Compensation Plan (the “Plan”) is to advance the interests
      of Lixte Biotechnology Holdings, Inc., a Delaware corporation (“Lixte”), by
      enhancing its ability to attract, retain and provide incentives to directors,
      officers, employees and independent contractors who are crucial to the future
      growth and success of Lixte and its subsidiaries and Affiliates (as hereinafter
      defined).

     

    Section
      2. Definitions

     

    “Affiliate”
      when used in conjunction with Lixte, shall include, but not be limited to,
      an
      entity or other person that directly or indirectly controls, or is controlled
      by, or is under common control with Lixte.

     

    “Award”
      means any Option, Stock Appreciation Right, Performance Share or Restricted
      Stock awarded under the Plan.

     

    “Board”
      means the board of directors of Lixte.

     

    “Committee”
      means a committee of not less than two members of the Board appointed by the
      Board to administer the Plan.

     

    “Common
      Stock” or “Stock” means the Common Stock of Lixte.

     

    “Company”
      means Lixte and, except where the content requires otherwise, all present and
      future subsidiaries and Affiliates of Lixte.

     

    “Designated
      Beneficiary” means the beneficiary designated by a Participant, in a manner
      determined by the Board, to receive amounts due or exercise rights of the
      Participant in the event of the Participant’s death or incapacity. In the
      absence of an effective designation by a Participant, Designated Beneficiary
      shall mean the Participant’s estate, in the event of the Participant’s death,
      and the Participant’s legal guardian, in the event of the Participant’s
      incapacity.

     

    “Fair
      Market Value” means with respect to Common Stock on any given date (i) if the
      Common Stock is listed for trading on one or more national securities exchanges,
      the mean of the high and low sales prices during regular trading hours on the
      principal exchange on which it is traded on the grant date, or, if the Common
      Stock shall not have been traded during regular trading hours on such principal
      exchange over such period, the mean of the high and low sales prices during
      regular trading hours on such principal exchange on the first day prior thereto
      on which the Common Stock was so traded; (ii) if Common Stock is not listed
      for
      trading on a national securities exchange but is traded on the over-the-counter
      market, the mean of the highest and lowest bid prices for the Common Stock
      during regular trading hours on the grant date, or, if there are no such bid
      prices for the Common Stock during such period, the mean of the highest and
      lowest bid prices during regular trading hours on the first day prior thereto
      on
      which such prices appear; and (iii) in all other events, such amount as may
      be
      determined by the Board in good faith by any fair and reasonable
      means.

     

    
      
        
        

      

      
         

        
          

        

      

      
        
        

      

    

     

    “Option”
      means an option to purchase shares of Common Stock awarded to a Participant
      under Section 6.

     

    “Participant”
      means a person selected by the Board to receive an Award under the
      Plan.

     

    “Performance
      Shares” mean shares of Common Stock which may be earned by the achievement of
      performance goals awarded to a Participant under Section 8.

     

    “Reporting
      Person” means a person subject to Section 16 of the Securities Exchange Act of
      1934 or any successor provision.

     

    “Restricted
      Period” means the period of time selected by the Board during which shares
      subject to a Restricted Stock Award may be repurchased by or forfeited to the
      Company.

     

    “Restricted
      Stock” means shares of Common Stock awarded to a Participant under Section
      9.

     

    “Stock
      Appreciation Right” or “SAR” means a right to receive any excess in Fair Market
      Value of shares of Common Stock over the exercise price awarded to a Participant
      under Section 7.

     

    Section
      3. Administration

     

    The
      Plan
      shall be administered by the Board or by a Committee to which some or all of
      the
      administration of the Plan is delegated by the Board. In the event the Board
      appoints a Committee, references in the Plan to the Board shall, as appropriate,
      be read as references to the Committee. The Board shall appoint and remove
      members of the Committee in its discretion in accordance with applicable laws.
      If necessary in order to comply with Rule 16b-3 under the Exchange Act, the
      Committee shall, in the Board’s discretion, be comprised solely of “non-employee
      directors” within the meaning of said Rule 16b-3. The foregoing notwithstanding,
      the Board and/or the Committee may delegate nondiscretionary administrative
      duties to such employees of the Company as it deems proper and the Board, in
      its
      absolute discretion, may at any time and from time to time exercise any and
      all
      rights and duties of the Committee under the Plan. 

     

    The
      Board
      shall have plenary authority in its discretion, to the maximum extent
      permissible by law, subject to and not inconsistent with the express provisions
      of the Plan, to administer the Plan. Without limiting the foregoing, the Board
      shall have authority to make Awards, to set administrative rules, guidelines
      and
      practices relating to the Plan as it shall deem advisable from time to time,
      and
      to interpret the provisions of the Plan. In determining the persons to whom
      Awards shall be made, the number of shares to be covered by each Award and
      the
      terms thereof (including the restriction, if any, which shall apply to the
      Common Stock subject to an Award), the Board shall take into account the duties
      of the respective persons, their present and potential contributions to the
      success of the Company and such other factors as the Board, in its discretion,
      shall deem relevant in connection with accomplishing the purposes of the Plan.
      The Board’s decisions shall be final and binding. Except as otherwise required
      by law, no member of the Board shall be liable for any action or determination
      relating to the Plan made in good faith.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    Section
      4. Eligibility

     

    Awards
      may be made to employees and independent contractors of the Company. For
      purposes hereof, independent contractors shall include consultants, advisors
      and
      directors of the Company.

     

    Section
      5. Stock
      Available for Awards

     

    (a) Subject
      to adjustment under Section 10 below, Awards may be made under the Plan for
      up
      to Two Million Five Hundred Thousand (2,500,000) shares of Common Stock. If
      any
      Award in respect of shares of Common Stock expires or is terminated unexercised
      or is forfeited for any reason or settled in a manner that results in fewer
      shares outstanding than were initially awarded, the shares subject to such
      Award
      or so surrendered, as the case may be, to the extent of such expiration,
      termination, forfeiture or decrease, shall again be available for award under
      the Plan. Shares issued under the Plan may consist in whole or in part of
      authorized but unissued shares or treasury shares.

     

    (b) The
      Board
      may grant Awards under the Plan in substitution for stock and stock based awards
      held by employees of another corporation who become employees of the Company
      as
      a result of a merger or consolidation of the employing corporation with the
      Company or the acquisition by the Company of property or stock of the employing
      corporation. The substitute Awards shall be granted on such terms and conditions
      as the Board considers appropriate in the circumstances. The shares which may
      be
      delivered under such substitute Awards shall be in addition to the maximum
      number of shares provided for in Section 5(a).

     

    Section
      6. Stock
      Options

     

    (a) General.

     

    (i) Subject
      to the provisions of the Plan, the Board may award Options and determine the
      number of shares to be covered by each Option, the option price therefor, the
      conditions and limitations applicable to the exercise of the Option and the
      restrictions, if any, applicable to the shares of Common Stock issuable
      thereunder.

     

    (ii) The
      Board
      shall establish the exercise price at the time each Option is
      awarded.

     

    (iii) Subject
      to Section 10(a), each Option shall be exercisable at such times and subject
      to
      such terms and conditions as the Board may specify in the applicable Award.
      The
      Board may impose such conditions with respect to the exercise of Options,
      including conditions relating to applicable federal or state securities laws,
      as
      it considers necessary or advisable.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (iv) Options
      granted under the Plan shall provide for the payment of the exercise price
      by
      delivery of cash or check in an amount equal to the exercise price of such
      Options or by delivery of shares of Common Stock of the Company owned by the
      optionee for at least six months (valued at Fair Market Value) and, to the
      extent permitted by the Board at or after the award of the Option, may provide
      for payment by (A) delivery of other property acceptable to the Board (valued
      at
      fair market value), (B) delivery of a promissory note of the optionee to the
      Company on terms determined by the Board, (C) delivery of an irrevocable
      undertaking by a broker to deliver promptly to the Company sufficient funds
      to
      pay the exercise price or delivery of irrevocable instructions to a broker
      to
      deliver promptly to the Company cash or a check sufficient to pay the exercise
      price, (D) payment of such other lawful consideration as the Board may
      determine, or (E) any combination of the foregoing.

     

    (v) The
      Board
      may provide for the automatic award of an Option upon the delivery of shares
      to
      the Company in payment of the exercise price of an Option for up to the number
      of shares so delivered.

     

    (vi) The
      Board
      may at any time accelerate the time at which all or any part of an Option may
      be
      exercised.

     

    Section
      7. Stock
      Appreciation Rights

     

    (a) The
      Board
      may grant Stock Appreciation Rights entitling recipients on exercise of the
      SAR
      to receive an amount, in cash or Stock or a combination thereof (such form
      to be
      determined by the Board), determined in whole or in part by reference to
      appreciation in the Fair Market Value of the Stock between the date of the Award
      and the exercise of the Award. A Stock Appreciation Right shall entitle the
      Participant to receive, with respect to each share of Stock as to which the
      SAR
      is exercised, the excess of the share’s Fair Market Value on the date of
      exercise over its Fair Market Value on the date the SAR was
      granted.

     

    (b) SARs
      may
      be granted in tandem with, or independently of, Options granted under the Plan.
      An SAR granted in tandem with an Option may be granted either at or after the
      time the Option is granted.

     

    (c) When
      SARs
      are granted in tandem with Options, the following provisions shall
      apply:

     

    (i) The
      SAR
      shall be exercisable only at such time or times, and to the extent, that the
      related Option is exercisable and shall be exercisable in accordance with the
      procedure required for exercise of the related Option.

     

    (ii) The
      SAR
      shall terminate and no longer be exercisable upon the termination or exercise
      of
      the related Option, except that a SAR granted with respect to less than the
      full
      number of shares covered by an Option shall not be reduced until the number
      of
      shares as to which the related Option has been exercised or has terminated
      exceeds the number of shares not covered by the SAR.

     

    (iii) The
      Option shall terminate and no longer be exercisable upon the exercise of the
      related SAR.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (d) An
      SAR
      not granted in tandem with an Option shall become exercisable at such time
      or
      times, and on such conditions, as the Board may specify.

     

    (e) The
      Board
      may at any time accelerate the time at which all or any part of the SAR may
      be
      exercised.

     

    (f) SARs
      may
      not be sold, pledged, assigned or transferred in any manner other than by will
      or by the laws of intestate succession, and may be exercised during the lifetime
      of grantee only by the Participant. Any transfer by the Participant of any
      SAR
      granted under the Plan shall void such SAR and the Company shall have no further
      obligation with respect to such SAR. No SAR shall be pledged or hypothecated
      in
      any way, nor shall any SAR be subject to execution, attachment or similar
      process.

     

    (g) SARs
      granted pursuant to this Plan shall represent no more than unfunded unsecured
      contractual obligations of the Company and the Company shall have no obligation
      to set aside any assets to fund any SAR obligation. Amounts payable for SARs
      under the Plan shall be paid from the general funds of the Company, and the
      Participant and any Designated Beneficiary shall be no more than unsecured
      general creditors of the Company with no special or prior right to any assets
      of
      the Company for payment of any SAR obligations hereunder.

     

    Section
      8. Performance
      Shares

     

    (a) The
      Board
      may make Performance Share Awards entitling recipients to acquire shares of
      Stock upon the attainment of specified performance goals. The Board may make
      Performance Share Awards independent of or in connection with the granting
      of
      any other Award under the Plan. The Board in its sole discretion shall determine
      the performance goals applicable under each such Award, the periods during
      which
      performance is to be measured, and all other limitations and conditions
      applicable to the awarded Performance Shares.

     

    (b) A
      Participant receiving a Performance Share Award shall have the rights of a
      stockholder only as to shares actually received by the Participant under the
      Plan and not with respect to shares subject to an Award but not actually
      received by the Participant. Prior to receipt of shares pursuant to a
      Performance Share Award, the Performance Share Award shall represent an unfunded
      unsecured contractual obligation of the Company and the Company shall be under
      no obligation to set aside any assets to fund such Performance Share Award.
      A
      Participant shall be entitled to receive a stock certificate evidencing the
      acquisition of shares of Stock under a Performance Share Award only upon
      satisfaction of all conditions specified in the Agreement evidencing the
      Performance Share Award.

     

    (c) The
      Board
      may at any time accelerate or waive any or all of the goals, restrictions or
      conditions imposed under any Performance Share Award.

     

    (d) Performance
      Share Awards may not be sold, pledged, assigned or transferred in any manner
      other than by will or by the laws of intestate succession. Any transfer by
      the
      Participant of any Performance Share Award granted under the Plan shall void
      such Award and the Company shall have no further obligation with respect to
      such
      Award. No Performance Share Award shall be pledged or hypothecated in any way,
      nor shall any Performance Share Award be subject to execution, attachment or
      similar process.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    Section
      9. Restricted
      Stock

     

    (a) The
      Board
      may grant Restricted Stock Awards entitling recipients to acquire shares of
      Stock, subject to the right of the Company to repurchase all or part of such
      shares at their purchase price (or to require forfeiture of such shares if
      purchased at no cost) from the recipient in the event that conditions specified
      by the Board in the applicable Award are not satisfied prior to the end of
      the
      applicable Restricted Period or Restricted Periods established by the Board
      for
      such Award. Conditions for repurchase (or forfeiture) may be based on continuing
      employment or service or achievement of pre-established performance or other
      goals and objectives.

     

    (b) Shares
      of
      Restricted Stock may not be sold, assigned, transferred, pledged or otherwise
      encumbered, except as permitted by the Board during the applicable Restricted
      Period. Shares of Restricted Stock shall be evidenced in such manner as the
      Board may determine. Any certificates issued in respect of shares of Restricted
      Stock shall be registered in the name of the Participant and, unless otherwise
      determined by the Board, deposited by the Participant, together with a stock
      power endorsed in blank, with the Company (or its designee). At the expiration
      of the Restricted Period, the Company (or such designee) shall deliver such
      certificates to the Participant or if the Participant has died, to the
      Participants’ Designated Beneficiary.

     

    (c) The
      purchase price for each share of Restricted Stock shall be determined by the
      Board. Such purchase price may be paid in cash or such other lawful
      consideration as is determined by the Board.

     

    (d) The
      Board
      may at any time accelerate the expiration of the Restricted Period applicable
      to
      all, or any particular, outstanding shares of Restricted Stock.

     

    (e) Notwithstanding
      the foregoing, the Board may award to Participants Restricted Stock for services
      rendered or to be rendered by such Participant pursuant to the terms of any
      agreement between the Company and such Participant, which award is not requested
      to contain any repurchase rights or forfeiture provisions.

     

    Section
      10. General
      Provisions Applicable to Awards

     

    (a) Maximum
      Term.
      No
      Award shall have a term exceeding ten years, measured from the date of the
      Award
      grant.

     

    (b) Documentation.
      Each
      Award under the Plan shall be evidenced by an instrument delivered to the
      Participant specifying the terms and conditions thereof and containing such
      other terms and conditions not inconsistent with the provisions of the Plan
      as
      the Board considers necessary or advisable. Such instruments may be in the
      form
      of agreements to be executed by both the Company and the Participant, or
      certificates, letters or similar documents, acceptance of which shall evidence
      agreement to the terms thereof and of this Plan. The certificates representing
      the Stock issued pursuant to an Award granted under this Plan shall bear such
      legends as may be required by applicable law to give notice of restrictions
      on
      transfer of such shares.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (c) Change
      in Control.
      In the
      event that the Company or the division, subsidiary or other affiliated entity
      for which a Participant performs services is sold, merged, consolidated,
      reorganized or liquidated, all unvested Options immediately vest.

     

    (d) Board
      Discretion.
      Each
      type of Award may be made alone, in addition to or in relation to any other
      type
      of Award. The terms of each type of Award need not be identical and the Board
      need not treat Participants uniformly. Except as otherwise provided by the
      Plan
      or a particular Award, any determination with respect to an Award may be made
      by
      the Board at the time of the Award grant or at any time thereafter.

     

    (e) Termination
      of Status.
      The
      Board shall determine and specify in the Award documentation the effect on
      an
      Award of the disability, death, retirement, authorized leave of absence or
      other
      termination of employment or other status of a Participant and the extent to
      which, and the period during which, the Participant’s legal representative,
      guardian or Designated Beneficiary may exercise rights under such
      Award.

     

    (f) Dilutions
      and Other Adjustments.
      In the
      event of any stock dividend or split, issuance or repurchase of stock or
      securities convertible into or exchangeable for shares of stock, grants of
      options, warrants or rights to purchase stock, recapitalization, combination,
      exchange or similar change affecting the Common Stock, or any other increase
      or
      decrease in the number of issued shares of Common Stock effected without receipt
      of consideration by the Company, the Board in its sole discretion may equitably
      adjust any or all of (i) the number and kind of shares in respect of which
      Awards may be made under the Plan, (ii) the number and kind of shares subject
      to
      outstanding Awards, and (iii) the award, exercise or conversion price with
      respect to any of the foregoing, and may make any other equitable adjustments
      or
      take such other equitable action as the Board, in its discretion, shall deem
      appropriate, including, if considered appropriate by the Board, making provision
      for a cash payment with respect to an outstanding Award. Such adjustments or
      actions shall be conclusive and binding for all purposes. In the event of a
      change in the Common Stock which is limited to a change in the designation
      thereof to “Capital Stock” or other similar designation, or to a change in the
      par value thereof, or from no par value to par value (or vice versa), without
      increase or decrease in the number of issued shares, the shares resulting from
      any such change shall be deemed to be Common Stock within the meaning of the
      Plan. For purposes hereof, the conversion of any convertible securities of
      the
      Company shall not be deemed to have been “effected without receipt of
      consideration.”

     

    In
      the
      event that the Company or the division, subsidiary or other affiliated entity
      for which a Participant performs services is sold, merged, consolidated,
      reorganized or liquidated, the Board may take any one or more of the following
      actions as to outstanding Awards: (i) provide that such Awards shall be
      assumed, or substantially equivalent Awards shall be substituted, by the
      acquiring or succeeding corporation (or an affiliate thereof) on such terms
      as
      the Board determines to be appropriate, (ii) upon written notice to
      Participants, provide that all unexercised Options or SARs shall terminate
      immediately prior to the consummation of such transaction unless exercised
      by
      the Participant within a specified period following the date of such notice,
      (iii) in the event of a sale or similar transaction under the terms of which
      holders of the Common Stock of the Company receive a payment for each share
      surrendered in the transaction (the “Sales Price”), make or provide for a
      payment to each Option and/or SAR holder equal to the amount by which (A) the
      Sales Price times the number of shares of Common Stock subject to Participant’s
      outstanding, vested Options or SARs exceeds (B) the aggregate exercise price
      of
      all such outstanding, vested Options or SARs, in exchange for the termination
      of
      such Options or SARs, (iv) or make such other adjustments, if any, as the Board
      determines to be necessary or advisable to provide each Participant with a
      benefit substantially similar to that to which the Participant would have been
      entitled had such event not occurred.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (g) Withholding.
      The
      Participant shall pay to the Company, or make provision satisfactory to the
      Board for payment of, any taxes required by law to be withheld in respect of
      Awards under the Plan no later than the date of the event creating the tax
      liability. In the Board’s discretion, and subject to such conditions as the
      Board may establish, such tax obligations may be paid in whole or in part in
      shares of Common Stock, including shares retained from the Award creating the
      tax obligation, valued at their Fair Market Value. The Company may, to the
      extent permitted by law, deduct any such tax obligations from any payment of
      any
      kind otherwise due to the Participant.

     

    (h) Foreign
      Nationals.
      Awards
      may be made to Participants who are foreign nationals or employed outside the
      United States on such terms and conditions different from those specified in
      the
      Plan as the Board considers necessary or advisable to achieve the purposes
      of
      the Plan and comply with applicable laws and/or achieve favorable tax results
      under foreign tax laws.

     

    (i) Amendment
      of Award.
      The
      Board may amend, modify or terminate any outstanding Award, including
      substituting therefor another Award of the same or a different type, and
      changing the date of exercise or realization, provided that the Participant’s
      consent to such action shall be required unless the Board determines that the
      action, taking into account any related action, would not materially and
      adversely affect the Participant.

     

    (j) Conditions
      on Delivery of Stock.
      The
      Company shall not be obligated to deliver any shares of Stock pursuant to the
      Plan or to remove restrictions from shares previously delivered under the Plan
      (i) until all conditions of the Award have been satisfied or removed, (ii)
      until, in the opinion of the Company’s counsel, all applicable federal and state
      laws and regulations have been complied with, and (iii) if the outstanding
      Stock
      is at the time listed on any stock exchange, until the shares to be delivered
      have been listed or authorized to be listed on such exchange upon official
      notice of issuance. If the sale of Stock has not been registered under the
      Securities Act of 1933, as amended, the Company may require, as a condition
      to
      exercise of the Award, such representations or agreements as the Company may
      consider appropriate to avoid violation of such Act and may require that the
      certificates evidencing such Stock bear an appropriate legend restricting
      transfer. Except to the extent as may be specified in the documentation with
      respect to a particular Award grant, the Company shall be under no obligation
      to
      register or qualify any shares of Common Stock subject to Awards under any
      federal or state securities law or on any exchange.

     

    Section
      11. Miscellaneous

     

    (a) No
      Right To Employment or Other Status.
      No
      person shall have any claim or right to be granted an Award, and the grant
      of an
      Award shall not be construed as giving a Participant the right to continued
      employment by or the right to continue to provide services to the Company.
      The
      Company expressly reserves the right at any time to dismiss a Participant free
      from any liability or claim under the Plan, except as may be expressly provided
      in the applicable Award.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (b) No
      Rights As Stockholder.
      Subject
      to the provisions of the applicable Award, no Participant or Designated
      Beneficiary shall have any rights as a stockholder with respect to any shares
      of
      Common Stock to be distributed under the Plan until he or she becomes the record
      holder thereof.

     

    (c) No
      Restriction on the Right of the Company to Effect Corporate
      Changes.
      The
      Plan and the Options granted hereunder shall not affect in any way the right
      or
      power of Lixte or its stockholders to make or authorize any or all adjustments,
      recapitalization, reorganizations or other changes in the Company’s capital
      structure or its business, or any merger or consolidation of the Company, or
      any
      issue of stock or of options, warrants or rights to purchase stock or of bonds,
      debentures, preferred or prior preference stocks whose rights are superior
      to or
      affect the Common Stock or the rights of holders thereof or which are
      convertible into or exchangeable for Common Stock, or the dissolution or
      liquidation of Lixte or the Company, or any sale or transfer of all or any
      part
      of its assets or business, or any other corporate act or proceeding, whether
      of
      a similar character or otherwise.

     

    (d) Exclusion
      from Benefit Computations.
      Except
      as expressly specified in the applicable plan or program, no amount or shares
      of
      Common Stock payable upon exercise of an Award granted under the Plan shall
      be
      considered salary, wages or compensation for purposes of determining the amount
      or nature of benefits that a Participant is entitled to receive under any
      Company benefit plan or program.

     

    (e) Effective
      Date and Term.
      This
      Plan shall become effective upon adoption by the Board provided, however, that
      no Award shall be exercisable unless and until written consent of the
      shareholders of the Company, or approval of shareholders of the Company voting
      at a validly called shareholders’ meeting, is obtained within twelve months
      after adoption by the Board. If such shareholder approval is not obtained within
      such time, Awards granted hereunder shall terminate and be of no force and
      effect from and after expiration of such twelve-month period. Awards may be
      granted or exercised under this Plan only after there has been compliance with
      all applicable federal and state securities laws. No Award may be made under
      the
      Plan after the tenth anniversary of the Plan’s effective date, but Awards
      granted before such date may extend beyond that date.

     

    (f) Amendment
      of Plan.
      The
      Board may amend, suspend or terminate the Plan or any portion thereof at any
      time; provided, however, that no amendment shall be made without stockholder
      approval if such approval is necessary to comply with any applicable tax or
      regulatory requirement. Prior to any such approval, Awards may be made under
      the
      Plan expressly subject to such approval.

     

    (g) Delivery
      of Financial Statements.
      To the
      extent required by applicable laws, rules and regulations, the Company shall
      deliver to each Participant financial statements of the Company at least
      annually while such Participant holds an outstanding Award.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    (h) Notices.
      Any
      notice to be given under the terms of the Plan shall be addressed to the Company
      in care of its Secretary at its principal office, and any notice to be given
      to
      a Participant shall be addressed to such Participant at the address maintained
      by the Company for such person or at such other address as the Participant
      may
      specify in writing to the Company.

     

    (i) Governing
      Law.
      The
      provisions of the Plan shall be governed by and interpreted in accordance with
      the laws of the state of Delaware.

     

     

    
      	 	
              LIXTE
                BIOTECHNOLOGY HOLDINGS, INC.

            
	 	 
	 	
              By: 

              
                

              

            
	 	 
	 	Name:
              John S. Kovach
	 	 
	 	
              Title:
                President

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    STOCK
      OPTION AGREEMENT

     

    THIS
      STOCK OPTION AGREEMENT (“Agreement”) is made by and between LIXTE BIOTECHNOLOGY
      HOLDINGS, INC, a Delaware corporation (the “Company”), and
      ______________________ (the “Optionee”).

     

    NOW,
      THEREFORE, in consideration of the mutual benefit to be derived herefrom, the
      Company and Optionee agree as follows:

     

    1. Grant
      of Option.
      The
      Company hereby grants to Optionee, subject to all the terms and provisions
      of
      the Stock Compensation Plan, as such Plan may be hereinafter amended, a copy
      of
      which is attached hereto and incorporated herein by this reference (the “Plan”),
      the right, privilege and option (“Option”) to purchase _______ shares of its
      common stock (“Stock”) at __________ per share, in the manner and subject to the
      conditions provided hereinafter and in the Plan and any amendments thereto
      and
      any rules and regulations thereunder.

     

    2. Vesting
      and Exercise of Option.
      The
      Optionee shall be vested in _____ % of the total number of shares subject to
      the
      Option on the date of execution of this Agreement. Thereafter, the remaining
      shares subject to the Option (the “Vesting Shares”) shall vest in the Optionee
      and may be exercised by the Optionee as to the percentage (to a maximum of
      100%)
      of the Vesting Shares determined by multiplying the number of complete years
      that the Optionee has been in the employ of the Company since the date of
      execution of this Agreement by _____% for each complete year. Any exercise
      may
      be with respect to any part or all of the shares then vested and exercisable
      pursuant to such Option, provided that the minimum number of shares exercisable
      at any time shall not be less _______ shares or the balance of shares for which
      the Option is then exercisable.

     

    3. Termination
      of Option.
      Except
      as otherwise provided in this Agreement or the Plan, to the extent not
      previously exercised, the Option shall terminate upon the first to occur of
      any
      of the following events:

     

    a. ____________,
      20____, not to exceed 10 years from the date of the grant of the Option
      hereunder;

     

    b. the
      date
      the Optionee ceases to be employed by the Company (including any Affiliate
      thereof as defined by the Plan), is no longer an officer or member of the Board
      of Directors of the Company or no longer performs services for the Company,
      for
      any reason (other than such Optionee's death or disability), any Option granted
      hereunder to such Optionee shall expire three months after the date of such
      termination. The Board shall, in its sole and absolute discretion, decide
      whether an authorized leave of absence or absence for military or governmental
      service, or absence for any other reason, shall constitute termination of
      eligibility for purposes of this Section. In the event the Optionee’s
      termination results from the fact that the Optionee is “disabled,” the Option
      shall expire one year after the date of such termination. Any option that has
      not vested in the Optionee as of the date of termination of employment or
      service with the Company, shall immediately expire and shall be null and
      void.

     

    c. six
      months after the date of the Optionee’s death. The Option may be exercised
      (subject to the condition that no Option shall be exercisable after its
      expiration and only to the extent that the Optionee's right to exercise such
      Option was vested at the time of the Optionee's death) at any time within six
      months after the Optionee's death by the executors or administrators of the
      Optionee or by any person or persons who shall have acquired the Option directly
      from the Optionee by bequest or inheritance. Any option that has not vested
      in
      the Optionee as of the date of death, shall immediately expire and shall be
      null
      and void.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    d. the
      dissolution or liquidation of the Company; or

     

    e. the
      breach by Optionee of any provision of the Plan or this Agreement.

     

    4. Method
      of Exercise.
      An
      Option shall be exercised by written notice to the Company by the Optionee
      (or
      successor in the event of death). Such written notice shall state the number
      of
      shares with respect to which the Option is being exercised and designate a
      time,
      during normal business hours of the Company, for the delivery thereof ("Exercise
      Date"), which time shall be at least 30 days after the giving of such notice
      unless an earlier date shall have been mutually agreed upon. At the time
      specified in the written notice, the Company shall deliver to the Optionee
      at
      the principal office of the Company, or such other appropriate place as may
      be
      determined by the Board, a certificate or certificates for such shares.
      Notwithstanding the foregoing, the Company may postpone delivery of any
      certificate or certificates after notice of exercise for such reasonable period
      as may be required to comply with any applicable listing requirements of any
      securities exchange. In the event an Option shall be exercisable by any person
      other than the Optionee, the required notice under this Section shall be
      accompanied by appropriate proof of the right of such person to exercise the
      option. The option exercise price shall be payable in full on or before the
      option Exercise Date in any one of the following alternative forms:

     

    a. Full
      payment in cash or certified bank or cashier's check;

     

    b. A
      full
      recourse promissory note executed by the Optionee, made payable to the Company
      bearing interest at such rate as the Board shall determine, but in no case
      less
      than the “Applicable Federal Rate” at the time the note is executed applicable
      under the Code to obligations of the same duration. The note shall contain
      such
      terms and conditions as may be determined by the Board; provided, however,
      that
      the full principal amount of the note and all unpaid interest accrued thereon
      shall be due not later than five years from the date of exercise. The Company
      may obtain from the Optionee a security interest in all shares of Stock issued
      to the Optionee under the Plan for the purpose of securing payment under the
      note and shall retain possession of the stock certificates representing such
      shares in order to perfect its security interest;

     

    c. Full
      payment in shares of Stock or other securities of the Company having a fair
      market value on the Exercise Date in the amount equal to the option exercise
      price;

     

    d. A
      combination of the consideration set forth in Sections (a), (b) and (c) hereof
      equal to the option exercise price; or

     

    e. Any
      other
      method of payment including, but not limited to, the delivery by Optionee of
      an
      irrevocable direction to a securities broker approved by the Company to sell
      the
      Stock and to deliver all or part of the sales proceeds to the Company in payment
      of all or part of the exercise price and any withholding taxes.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    5. Restrictions
      on Exercise and Delivery.
      The
      exercise of each Option shall be subject to the condition that, if at any time
      the Board shall determine, in its sole and absolute discretion,

     

    a. the
      satisfaction of any withholding tax or other withholding liabilities, is
      necessary or desirable as a condition of, or in connection with, such exercise
      or the delivery or purchase of Stock pursuant thereto,

     

    b. the
      listing, registration, or qualification of any shares deliverable upon such
      exercise is desirable or necessary, under any state or federal law, as a
      condition of, or in connection with, such exercise or the delivery or purchase
      of shares pursuant thereto, or

     

    c. the
      consent or approval of any regulatory body is necessary or desirable as a
      condition of, or in connection with, such exercise or the delivery or purchase
      of shares pursuant thereto,

     

    then
      in
      any such event, such exercise shall not be effective unless such withholding,
      listing, registration, qualification, consent or approval shall have been
      effected or obtained free of any conditions not acceptable to the Board.
      Optionee shall execute such documents and take such other actions as are
      required by the Board to enable it to effect or obtain such withholding,
      listing, registration, qualification, consent or approval. Neither the Company
      nor any officer or member of the Board or the Committee, shall have any
      liability with respect to the non-issuance or failure to sell shares as the
      result of any suspensions of exercisability imposed pursuant to this
      Section.

     

    6. Nonassignability.
      Options
      may not be sold, pledged, assigned or transferred in any manner other than
      by
      will or by the laws of intestate succession, and may be exercised during the
      lifetime of Optionee only by Optionee. Any transfer by Optionee of any Option
      granted under the Plan or this Agreement shall void such Option and the Company
      shall have no further obligation with respect to such Option. No Option shall
      be
      pledged or hypothecated in any way, nor shall any Option be subject to
      execution, attachment or similar process.

     

    7. Restrictive
      Legends.
      Each
      certificate evidencing the shares acquired upon exercise of an Option hereunder,
      including any certificate issued to any transferee thereof, shall be imprinted
      with legends substantially in the form set forth in the Plan.

     

    8. Rights
      as Shareholder.
      Neither
      Optionee nor his executor, administrator, heirs or legatees, shall be, or have
      any rights or privileges of a shareholder of the Company in respect of the
      Stock
      unless and until certificates representing such Stock shall have been issued
      in
      Optionee’s name.

     

    9. No
      Right of Employment.
      Neither
      the grant nor exercise of any Option nor anything in the Plan or this Agreement
      shall impose upon the Company or any other corporation any obligation to employ
      or continue to employ any Optionee. The right of the Company and any other
      corporation to terminate any employee shall not be diminished or affected
      because an Option has been granted to such employee.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    10. Definitions.
      Capitalized terms shall have the meaning set forth in the Plan unless otherwise
      defined herein.

     

    11. Notices.
      Any
      notice to be given under the terms of this Agreement shall be addressed to
      the
      Company in care of its Secretary at its principal office, and any notice to
      be
      given to Optionee shall be addressed to such Optionee at the address maintained
      by the Company for such person or at such other address as the Optionee may
      specify in writing to the Company.

     

    12. Binding
      Effect.
      This
      Agreement shall be binding upon and inure to the benefit of Optionee, his heirs
      and successors, and of the Company, its successors and assigns.

     

    13. Governing
      Law.
      This
      Agreement shall be governed by the laws of the State of Delaware.

     

    14. Application
      of Plan.
      The
      Company has delivered and the Optionee hereby acknowledges receipt of a copy
      of
      the Plan. The parties agree and acknowledge that the Option granted hereunder
      is
      granted pursuant to the Plan and subject to the terms and provisions thereof,
      and the rights of the Optionee are subject to modifications and termination
      in
      certain events as provided in the Plan. 

     

    IN
      WITNESS WHEREOF, this Agreement is effective as of, and the date of grant shall
      be ___________________________.

     

    
      	 	
              LIXTE
                BIOTECHNOLOGY HOLDINGS, INC

            
	 	 
	 	
              By:

              
                

              

            
	 	
              Title:_____________________________________

            
	 	 
	 	 
	 	
              OPTIONEE

            

    

     

    
      
         

      

      
        14

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