Document:

Exhibit 10.1

 

JOHN HANCOCK TOWER

200
Clarendon Street

Boston,
Massachusetts

(the
“Building”)

 

NINTH
AMENDMENT TO LEASE

Execution
Date: Dated as of January 1, 2005

 

	
  LANDLORD:

  	
   

  	
  100 & 200
  Clarendon, LLC, successor in interest to John Hancock Life Insurance Company

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TENANT:

  	
   

  	
  Investors Bank &
  Trust Company, a Massachusetts trust company

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OFFICE

  	
   

  	
   

  	
   

  	
   

  
	
  PREMISES:

  	
   

  	
  An area containing 354,936
  rentable square feet (as outlined below) on Floors [/*/ CONFIDENTIAL
  TREATMENT REQUESTED] of the Building, as shown on Exhibit A to the Lease,
  Exhibit A-2 to the First Amendment to Lease, Exhibit A-2 to the
  Second Amendment to Lease, Exhibit A-3 to the Third Amendment to Lease
  (Revised and Corrected), Exhibit A-2 to the Fourth Amendment to Lease,
  Exhibit A-6 to the Sixth Amendment to Lease, Exhibit A-8 to the
  Seventh Amendment to Lease and Exhibit A-9 to the Eighth Amendment to
  Lease

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Floor
  [/*/ CONFIDENTIAL TREATMENT REQUESTED]: 45,243 rentable square feet

  
	
   

  	
   

  	
  Floor
  [/*/ CONFIDENTIAL TREATMENT REQUESTED]: 45,345 rentable square feet

  
	
   

  	
   

  	
  Floor
  [/*/ CONFIDENTIAL TREATMENT REQUESTED]: 45,345 rentable square feet

  
	
   

  	
   

  	
  Floor
  [/*/ CONFIDENTIAL TREATMENT REQUESTED]: 27,419 rentable square feet

  
	
   

  	
   

  	
  Floor
  [/*/ CONFIDENTIAL TREATMENT REQUESTED]: 27,312 rentable square feet

  
	
   

  	
   

  	
  Floor
  [/*/ CONFIDENTIAL TREATMENT REQUESTED]: 27,415 rentable square feet

  
	
   

  	
   

  	
  Floor
  [/*/ CONFIDENTIAL TREATMENT REQUESTED]: 27,416 rentable square feet

  
	
   

  	
   

  	
  Floor
  [/*/ CONFIDENTIAL TREATMENT REQUESTED]: 27,413 rentable square feet

  
	
   

  	
   

  	
  Floor
  [/*/ CONFIDENTIAL TREATMENT REQUESTED]: 26,958 rentable square feet

  
	
   

  	
   

  	
  Floor
  [/*/ CONFIDENTIAL TREATMENT REQUESTED]: 26,958 rentable square feet

  
	
   

  	
   

  	
  Floor
  [/*/ CONFIDENTIAL TREATMENT REQUESTED]: 28.112 rentable square feet

  
	
   

  	
   

  	
  Total

  	
   

  	
  354,936
  rentable square feet

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DATA CLOSET

  	
   

  	
   

  	
   

  	
   

  
	
  PREMISES:

  	
   

  	
  Floor
  [/*/ CONFIDENTIAL TREATMENT REQUESTED]: 107 rentable square feet (“Data
  Closet Premises”)

  
							

 

[/*/ CONFIDENTIAL
TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN
FILED WITH THE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

1

 

	
  LEASE

  	
   

  	
  DATE OF

  	
   

  	
   

  
	
  DATA

  	
   

  	
  LEASE:

  	
   

  	
  November 13, 1995

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TERMINATION

  	
   

  	
   

  
	
   

  	
   

  	
  DATE:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Floors [/*/ CONFIDENTIAL
  TREATMENT REQUESTED] (“Area A”): June 30, 2011

  Floors [/*/ CONFIDENTIAL TREATMENT REQUESTED] (“Area B”):
  September 30, 2007

  Floor [/*/ CONFIDENTIAL TREATMENT REQUESTED] (“Area C”):
  November 30, 2010

  Area A, Area B and Area C shall sometimes hereinafter be collectively
  referred to as the “Premises.”

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PREVIOUS

  	
   

  	
   

  
	
   

  	
   

  	
  LEASE

  	
   

  	
   

  
	
   

  	
   

  	
  AMENDMENTS:

  	
   

  	
  Letter Agreement dated
  November 13, 1995

  First Amendment dated February 24, 1997

  Second Amendment dated June 19, 1997

  Letter from Landlord to Tenant dated June 19, 1997

  re: RFO on Floors [/*/ CONFIDENTIAL TREATMENT REQUESTED]

  Letter from Tenant to Landlord dated July 14, 1997

  (informing Landlord that Tenant is not interested in RFO on [/*/ CONFIDENTIAL
  TREATMENT REQUESTED])

  Third Amendment dated
  December 1, 1997

  (Revised and Corrected)

  Fourth Amendment dated August 17, 1998

  Amendment to Letter Agreement dated October 15, 1999

  Fifth Amendment dated March 14, 2000

  Sixth Amendment dated September 19, 2000

  Seventh Amendment dated December 3, 2000

  Eighth Amendment dated April 19, 2001

  Letter from John Hancock to Tenant dated April 11, 2002

  re: RFO on Floors [/*/ CONFIDENTIAL TREATMENT REQUESTED]

  (Tenant has signed on April 19, 2002 stating Investors Bank is not interested
  at this time)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  EXTENDED

  	
   

  	
   

  
	
   

  	
   

  	
  TERMINATION

  	
   

  	
   

  
	
   

  	
   

  	
  DATE:

  	
   

  	
  December 31, 2014

  

 

WHEREAS, Tenant desires to
extend the Term of the lease for an additional term;

 

WHEREAS, Landlord is willing
to extend the Term of the lease upon the terms and conditions hereinafter set
forth;

 

[/*/ CONFIDENTIAL
TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN
FILED WITH THE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

2

 

NOW THEREFORE, the parties
hereby agree that the above-referenced lease, as previously amended (the “Lease”),
is hereby further amended as follows:

 

1.            REMEASUREMENT OF PREMISES

 

A.            The parties hereby acknowledge that, as provided in
Paragraph 3 of the Sixth Amendment to Lease, the Premises have been remeasured
by Visnick & Caulfield, using the Modified BOMA Standard and
therefore, notwithstanding anything to the contrary in the Lease contained,
effective as of January 1, 2005, the Premises shall be deemed to contain
354,936 rentable square feet of Office Premises and 107 rentable square feet of
Data Closet Premises, as set forth above.

 

B.            The parties hereby acknowledge that, as provided in
Paragraph 3 of the Sixth Amendment to Lease, the Building has been remeasured
by Visnick & Caulfield using the Modified BOMA Standard and therefore,
notwithstanding anything to the contrary in the Lease contained, effective as
of January 1, 2005, Tenant’s Proportionate Share shall be deemed to be
20.419% (based on 354,936 rentable square feet of Office Premises plus 107 rentable
square feet of Data Closet Premises divided by 1,738,779 [the rentable square
footage of the Building]).

 

2.             EXTENSION OF TERM

 

The Term of the Lease is
hereby extended for an additional term (“Additional Term”) commencing as of: (i) July 1,
2011, for Area A; (ii) October 1, 2007, for Area B; (iii) December 1,
2010, for Area C; and (iv) October 1, 2007, for the Data Closet
Premises, and terminating in each such case (i.e., for the entire Premises) as
of December 31, 2014 (“Extended Termination Date”). Said Additional Term
shall be upon all of the same terms and conditions of the Lease in effect
immediately preceding the commencement of such Additional Term (including,
without limitation, Tenant’s obligation to pay for electricity pursuant to Section 5.01(b) of
the Lease), except as set forth herein.

 

3.             REVISED BASE RENT, TAX BASE AND
OPERATING COSTS IN THE BASE YEAR

 

A.            In consideration of Tenant agreeing to an early extension
of the Term of the Lease, commencing as of January 1, 2005, and continuing
through the Extended Termination Date, the Base Rent for the Office Premises
shall be [/*/ CONFIDENTIAL TREATMENT REQUESTED]. Since Tenant has
previously paid Base Rent and additional rent for the months of January and
February 2005 at the rates in effect before the adjustments effected by
this Amendment, Tenant has overpaid rent for such months in the aggregate
amount of $ [/*/ CONFIDENTIAL TREATMENT REQUESTED]. Tenant shall recover
such overpayment

 

[/*/ CONFIDENTIAL
TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN
FILED WITH THE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

3

 

by crediting such amount
against the installment of Base Rent payable on March 1, 2005.
Notwithstanding the foregoing, Tenant shall have no obligation to pay Base Rent
in respect of the Office Premises and Data Closet Premises for the period
commencing as of  [/*/ CONFIDENTIAL
TREATMENT REQUESTED] and ending  [/*/ CONFIDENTIAL
TREATMENT REQUESTED].

 

B.            Commencing as of January 1,
2005, and continuing through the Extended Termination Date, the Tax Base shall
be the Taxes paid in the calendar year ending December 31,  [/*/ CONFIDENTIAL TREATMENT REQUESTED]
(i.e., 50% of the Taxes payable for fiscal year  [/*/ CONFIDENTIAL TREATMENT REQUESTED]
plus 50% of the Taxes payable for fiscal year [/*/ CONFIDENTIAL TREATMENT
REQUESTED]).

 

C.            Commencing as of January 1,
2005 and continuing through the Extended Termination Date, Operating Costs in
the Base Year shall be the Operating Costs incurred in the calendar year ending
December 31,  [/*/ CONFIDENTIAL
TREATMENT REQUESTED].

 

D.            Commencing as of January 1,
2005 and continuing through the Extended Termination Date, the Base Rent in
respect of the Data Closet Premises shall be [/*/ CONFIDENTIAL TREATMENT
REQUESTED].

 

E.             In the event that any of the
provisions of the Lease is inconsistent with this Amendment or the state of
facts contemplated hereby, the provisions of this Amendment shall control.

 

4.             LANDLORD’S CONTRIBUTION

 

A.            Landlord shall contribute an aggregate amount of  [/*/ CONFIDENTIAL TREATMENT REQUESTED] (“Landlord’s
Contribution”) towards the cost of leasehold improvements to be installed by
Tenant in the Premises (“Tenant’s Work”) and/or, at Tenant’s election, as a
credit against Tenant’s obligation to pay Base Rent under the Lease. From and
after the mutual execution and delivery of this Amendment, Tenant may elect to
apply the Landlord’s Contribution toward any installment of Base Rent falling
due under the Lease by giving Landlord written notice of such election not
later than five (5) days before the due date of such installment. Tenant
may make such election with respect to multiple installments by a single notice.
If Tenant elects to apply the Landlord’s Contribution, or any portion thereof,
towards the cost of Tenant’s Work, the following provisions of this Paragraph 3
shall apply.

 

B.            Tenant’s Work, if any, shall be performed in accordance
with the Lease including, without limitation, Sections 4.01 and 6.05 thereof.
Provided that no Event of Default exists at the time that Tenant requests any
requisition on account of Landlord’s Contribution, Landlord shall pay the cost
of the work shown on each requisition (as hereinafter defined) submitted by
Tenant to Landlord within thirty (30) days of submission thereof by Tenant to
Landlord. For the purposes hereof, a “requisition” shall

 

[/*/ CONFIDENTIAL
TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN
FILED WITH THE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

4

 

mean written documentation
showing in reasonable detail the costs of the improvements then installed by
Tenant in the Premises. Each requisition shall be accompanied by evidence
reasonably satisfactory to Landlord that all work covered by previous requisitions
has been fully paid by Tenant. Tenant shall submit requisition(s) no more often
than monthly.

 

C.            Notwithstanding anything to the contrary herein
contained:

 

(i)            Landlord shall have no obligation to advance funds on
account of Landlord’s Contribution with respect to payment of the cost of
Tenant’s Work unless and until Landlord has received the requisition in
question, together with certifications from Tenant’s architect, certifying that
the work shown on the requisition has been performed in accordance with
applicable law and in accordance with Tenant’s approved plans, if applicable.

 

(ii)           Landlord shall have no obligation to pay Landlord’s
Contribution in respect of any requisition submitted after [/*/ CONFIDENTIAL
TREATMENT REQUESTED]. Any portion of Landlord’s Contribution that has not been
requisitioned as aforesaid by [/*/ CONFIDENTIAL TREATMENT REQUESTED],
shall be applied against the next installment(s) of Base Rent due under the
Lease until the Landlord’s Contribution has been exhausted. Nothing contained
herein shall affect Tenant’s right to apply the Landlord’s Contribution toward
any installment of Base Rent falling due before [/*/ CONFIDENTIAL
TREATMENT REQUESTED].

 

D.            Except for Landlord’s Contribution, Tenant shall bear all
other costs of Tenant’s Work. Landlord shall have no liability or
responsibility for any claim, injury or damage alleged to have been caused by
the particular materials, whether building standard or non-building standard,
selected by Tenant in connection with Tenant’s Work.

 

5.             CONDITION OF PREMISES

 

The parties hereby
acknowledge that Tenant is in occupancy of the Premises and, notwithstanding
anything to the contrary herein or in the Lease contained, Tenant shall take
the Premises “as-is”, in the condition in which the Premises are in as of January 1,
2005, without any obligation on the part of Landlord to prepare or construct
the Premises for Tenant’s occupancy or to perform any work whatsoever in or
about the Premises and without any warranty or representation by Landlord as to
the condition of the Premises, except as may otherwise be expressly provided in
this Amendment. Notwithstanding the foregoing, Landlord agrees that the
Premises and, to the extent applicable, the Building shall comply with the Base
Building Conditions set forth in Exhibit B attached hereto. To the extent
that any work is required to make the Premises or the Building, as the case may
be, comply with such requirements, the cost of such work shall be allocated as
otherwise provided in the Lease (e.g., if the cost of such work would
constitute Operating Costs under the Lease, then a portion of the same shall be
reimbursed to Landlord as additional rent if and to the extent otherwise
required under the Lease).

 

[/*/ CONFIDENTIAL
TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN
FILED WITH THE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

5

 

6.             ADDITIONAL RENT FOR OPERATING COSTS AND TAXES

 

Effective as of January 1,
2005, Section 3.02 of the Lease is hereby deleted in its entirety and the
following is substituted in its place:

 

Section 3.02    ESCALATION:

 

A.            Definitions. As used in this Section 3.02, the words
and terms which follow mean and include the following:

 

(a)           “Operating Year” shall mean a
calendar year in which occurs any part of the term of this Lease.

 

(b)           “Operating Costs in the Base Year”
shall be the amount as stated in Paragraph 2 of the Ninth Amendment to Lease.

 

(c)           “Tenant’s Proportionate Share” shall be the figure as
stated in Paragraph 1B of the Ninth Amendment to Lease. (The phrase “Tenant’s
Percentage” shall be substituted with the phrase “Tenant’s Proportionate Share”).

 

(d)           “Taxes” shall mean the real estate taxes and other taxes,
levies and assessments imposed upon the Building and the land on which it
stands and upon any personal property of Landlord used in the operation thereof,
or Landlord’s interest in the Building or such personal property; charges, fees
and assessments for transit, housing, police, fire or other governmental
services or purported benefits to the Building; service or user payments in
lieu of taxes; and any and all other taxes, levies, betterments, assessments
and charges arising from the ownership, leasing, operating, use or occupancy of
the Building or based upon rentals derived therefrom, which are or shall be
imposed by National, State, Municipal or other authorities, provided that any
betterment or other assessments payable in installments shall be payable over
the longest period of time available under applicable law, and only the
installments (including any interest thereon required by law) payable during
the Term shall constitute Taxes hereunder. As of the Execution Date, “Taxes”
shall not include any transfer, franchise, estate or inheritance, rental,
income or profit tax, capital levy or excise, provided, however, that any of
the same and any other tax, excise, fee, levy, charge or assessment, however
described, that may in the future be levied or assessed as a substitute for or
an addition to, in whole or in part, any tax, levy or assessment which would
otherwise constitute “Taxes,” whether or not now customary or in the
contemplation of the parties on the Execution Date of this Ninth Amendment to
Lease, shall constitute “Taxes,” but only to the extent calculated as if the
Building and the land upon which it stands is the only real estate owned by Landlord.
“Taxes” shall also include reasonable and customary third party expenses of tax
abatement or other proceedings contesting assessments or levies.

 

(e)           “Tax Base” shall be the amount stated in Paragraph 3B of
the Ninth Amendment to Lease and shall apply to a Tax Period of twelve (12)
months. The

 

6

 

Tax Base shall be reduced
pro rata if and to the extent that the Tax Period contains fewer than twelve
(12) months.

 

(f)            “Tax Period” shall be any calendar year in respect of
which Taxes are due and payable to the appropriate governmental taxing
authority, any portion of which period occurs during the term of this Lease,
the first such Period being the calendar year ending December 31, [/*/
CONFIDENTIAL TREATMENT REQUESTED].

 

(g) “Operating Costs”:

 

(1)           Definition of Operating Costs. “Operating
Costs” shall mean all costs incurred and expenditures of whatever nature made
by Landlord in the operation and management, for repair and replacements,
cleaning and maintenance of the Building and grounds including, without
limitation, vehicular and pedestrian passageways related to the Building (but
excluding those areas, if any, outside the Building and for which operating
expenses are chargeable to non-office (i.e., commercial) tenants), related
equipment, facilities and appurtenances, elevators, cooling and heating
equipment. In the event that Landlord or Landlord’s managers or agents perform
services for the benefit of the Building off-site which would otherwise be performed
on-site (e.g., accounting), the cost of such services shall be reasonably
allocated among the properties benefiting from such service and shall be
included in Operating Costs. Operating Costs shall include, without limitation,
those categories of “Specifically Included Operating Costs,” as set forth
below, but shall not include “Excluded Costs,” as hereinafter defined. If
Landlord incurs Operating Costs for the Building together with one or more
other buildings or properties, the shared costs and expenses shall be equitably
prorated and apportioned between the Building and such other buildings or
properties.

 

(2)           Definition of Excluded Costs. “Excluded
Costs” shall be defined as mortgage charges, brokerage commissions, salaries of
executives and owners not directly employed in the management/operation of the
Building, the cost of work done by Landlord for a particular tenant for which
Landlord has the right to be reimbursed by such Tenant, and, subject to
Subparagraph (3) below, such portion of expenditures as are not properly
chargeable against income. Excluded Costs shall also mean the following:

 

A.            overhead and profit paid to Landlord
or its subsidiaries or affiliates for services to the extent that the same
exceed the cost of such services rendered by other first-class unaffiliated
parties on a competitive basis.

 

[/*/ CONFIDENTIAL
TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN
FILED WITH THE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

7

 

B.            management fees in excess of the
level of fair market management fees for comparable properties (and in no event
greater than three percent (3%) of gross rental collections per year).

 

C.            leasehold improvements, alterations
and decorations done for tenants of the Building, and services performed for
any tenant (including Tenant) of the Building, whether at the expense of
Landlord or such tenant, to the extent that such work or services are in excess
of the work or services which Landlord is required to furnish to Tenant under
this Lease.

 

D.            costs incurred in connection with
the making of repairs which are the obligation of another tenant of the
Building.

 

E.             advertising and promotional expenditures, and charitable
and political contributions.

 

F.             financing and refinancing costs in
respect of any mortgage placed upon the Property, including points and commissions
in connection therewith.

 

G.            interest or penalties for late payment by Landlord.

 

H.            costs (including, without
limitation, attorney’s fees and disbursements) incurred in connection with any judgment,
settlement or arbitration award resulting from any tort liability.

 

I.              costs incurred by Landlord as a
result of Landlord’s breach of this Lease or any other lease with a tenant of
the Property.

 

J.             the initial cost of equipment used
in the operation, repair and maintenance of the Building, or the rental costs
of such equipment.

 

K.            Wages, salaries, or other
compensation paid to any executives, or other employees above the grade of
general manager and any compensation paid to any Building employee to the
extent that the same is not fairly allocable to the work or service provided by
such employee to the Property.

 

L.             costs relating to any retail,
residential, garage or storage space (i.e., other than storage space utilized
in connection with the operation of the Building) in the Building.

 

M.           Taxes and any estate, succession,
inheritance, profit, use, occupancy, gross receipts, rental, capital gains, and
transfer taxes imposed upon Landlord.

 

N.            leasing and brokerage commissions
and similar fees.

 

8

 

O.            the cost of installing, operating
and maintaining any specialty service such as an observatory, broadcasting
facilities, child care center, cafeteria, conference center, luncheon club,
athletic or recreational club.

 

P.             the cost of repairs or replacements
incurred by reason of fire or other casualty or caused by the exercise of the
right of eminent domain whether or not insurance proceeds or a condemnation
award are recovered or adequate for such purposes; provided, however, that,
notwithstanding the foregoing, amounts paid from time to time by Landlord as a
deductible under a property insurance policy with respect to any casualty at
the Building shall be included in Operating Costs.

 

Q.            lease payments for rented equipment,
the cost of which equipment would constitute a capital expenditure if the
equipment were purchased, except to the extent that the Annual Charge-Off of
such Capital expenditure is includible in Operating Costs pursuant to
Subparagraph (3) below.

 

R.            any rent, additional rent or other
charge under any lease or sublease to or assumed by Landlord.

 

S.             costs of any items which are
reimbursable to Landlord by other tenants (other than as a reimbursement of
Operating Costs), insurance or condemnation proceeds or third parties.

 

T             debt service under any mortgage on
the Property and rent payable under any ground or underlying lease.

 

U             costs attributable to the presence
of Hazardous Materials in the Building.

 

V.            depreciation, amortization (except
as otherwise expressly provided herein) and other non-cash charges.

 

W.          any bad debt loss, rent loss or reserves for bad debts or
rent loss.

 

X.            the cost of acquiring, leasing, installing, or restoring
works of art.

 

Y.            any expenses which are not paid or
incurred in respect of the Building or Land but rather in respect of other real
property owned by landlord, provided that with respect to any expenses
attributable in part to the Building or Land and in part to other real property
owned by Landlord (including, without limitation, salaries, fringe benefits and
other compensation of Landlord’s personnel who provide services to both the
Building and other properties), Operating Costs shall include only such portion
thereof as are apportioned by Landlord to the Building or Land on a fair and
equitable basis;

 

9

 

Z.            fines or penalties resulting from
the violation by Landlord of any applicable legal laws and requirements;

 

AA.        expenses of relocating or moving any tenant(s) of the
Building;

 

BB.          costs incurred with respect to a sale
or transfer of all or any portion of the Building or any interest therein or in
any person of whatever tier owning an interest therein.

 

CC.          costs incurred in connection with the
acquisition or sale of air rights, transferable development rights, easements
or other real property interests;

 

DD.         any insurance costs to the extent the
same are in excess of those that are customary for like-type first-class office
buildings located in Boston, MA;

 

EE.          all costs of Landlord’s general
corporate and general administrative and overhead expenses;

 

FF.          the cost of temporary exhibitions
located at or within the Building.

 

(3)           Capital Expenditures.

 

(i)            Replacements. If, during the
term of this Lease, Landlord shall replace or install any capital items or make
any capital expenditures (collectively called “capital expenditures”) (x) which
have the effect of reducing Operating Costs below the costs that would have
been incurred absent such items or expenditures, or (y) to comply with legal
requirements first enacted or promulgated and in effect, or first becoming
applicable to the Building, after the Execution Date, the total amount of such
costs shall not be includible in Operating Costs for the Operating Year in
which they were made, but there shall nevertheless be included in such
Operating Costs and in Operating Costs for each succeeding Operating Year the
amount, if any, by which the Annual Charge-Off (determined as hereinafter
provided) of such capital expenditure (less insurance proceeds, if any,
collected by Landlord by reason of damage to, or destruction of the capital
item being replaced) exceeds the annual Charge-Off of the capital expenditure
for the item being replaced.

 

(ii)           Annual Charge-Off. “Annual
Charge-Off” shall be defined as the annual amount of principal and interest
payments which would be required to repay a loan (“Capital Loan”) in equal
monthly installments over the Useful Life, as hereinafter defined, of the
capital item in question on a direct reduction basis at an

 

10

 

annual interest rate equal
to the Capital Interest Rate, as hereinafter defined, where the initial
principal balance is the cost of the capital item in question. Notwithstanding
the foregoing, if Landlord reasonably concludes on the basis of engineering
estimates that a particular capital expenditure will effect savings in Building
operating expenses including, without limitation, energy-related costs, and
that such projected savings will, on an annual basis (“Projected Annual Savings”),
exceed the Annual Charge-Off of such capital expenditure computed as aforesaid,
then and in such events, the Annual Charge-Off shall be increased to an amount
equal to the Projected Annual Savings; and in such circumstances, the increased
Annual Charge-Off (in the amount of the Projected Annual Savings) shall be made
for such period of time as it would take to fully amortize the cost of the
capital item in question, together with interest thereon at the Capital
Interest Rate as aforesaid, in equal monthly payments, each in the amount of
one-twelfth (l/12th) of the Projected Annual Savings, with such payments being
applied first to interest and the balance to principal.

 

(iii)          Useful Life.
“Useful Life” shall be reasonably determined by Landlord in accordance with
generally accepted accounting principles and practices in effect at the time of
acquisition of the capital item.

 

(iv)          Capital Interest Rate. “Capital
Interest Rate” shall be defined as the lesser of (A) the rate that
Landlord would reasonably be required to pay to finance the cost of the capital
item or, if the capital item is acquired through third-party financing, then
the actual (including fluctuating) rate paid by Landlord in financing the
acquisition of such capital item, or (B) the interest rate then charged
for long term mortgages by institutional lenders on like properties within the
general locality in which the Building is located.

 

(4)           Specifically Included Categories of
Operating Costs. Operating Costs shall include, but not be limited to, the
following:

 

Taxes
(other than real estate taxes): Sales, Federal Social Security, Unemployment
and Old Age Taxes and contributions and State Unemployment taxes and
contributions accruing to and paid by the Landlord on account of all employees
of Landlord and/or Landlord’s managing agent, who are employed in, about or on
account of the Building, except that taxes levied upon the net income of the
Landlord and

 

11

 

taxes withheld from
employees, and “Taxes” as defined in Section 3.02(d) shall not be
included herein.

 

Water:
All charges and rates connected with water supplied to the Building and related
sewer use charges.

 

Heat
and Air Conditioning: All charges connected with heat and air conditioning
supplied to the Building, except to the extent reimbursed to Landlord for
services provided on an overtime basis.

 

Wages:
Wages and cost of all employee benefits of all employees of the Landlord and/or
Landlord’s managing agent who are employed in, about or on account of the
Building.

 

Cleaning:
The cost of labor and material for cleaning the Building, surrounding areaways
and windows in the Building.

 

Elevator
Maintenance: All expenses for or on account of the upkeep and maintenance of
all elevators in the Building.

 

Electricity:
The cost of all electric current for the operation of any machine, appliance or
device used for the operation of the premises and the Building, including the
cost of electric current for the elevators, lights, air conditioning and
heating, but not including electric current which is paid for directly to the
utility by the user/tenant in the Building. (If and so long as Tenant is billed
directly by the electric utility for its own consumption as determined by its
separate meter, then Operating Costs shall include only Building and public
area electric current consumption and not any demised premises electric current
consumption. Wherever separate metering is unlawful, prohibited by utility
company regulation or tariff or is otherwise impracticable, relevant
consumption figures for the purposes of this Section 3.02 shall be
determined by fair and reasonable allocations and engineering estimates made by
Landlord. Furthermore, if and to the extent that the
Operating-Costs-in-the-Base-Year figure shall include any component
representing the cost to the Landlord of electric current supplied to any
tenant’s premises under so-called “rent-inclusion” lease arrangements, then if
such cost is eliminated from Operating Costs in an Operating Year in accordance
with the foregoing provisions, the figure for Operating Costs in the Base Year
for the purposes of this Section 3.02 shall likewise be reduced by the
amount for such cost component.)

 

Insurance,
etc.: Fire, casualty, liability, rent loss and such other insurance as may from
time to time be required by lending institutions on first-class office
buildings in the City or Town wherein the Building is located and all other
expenses customarily incurred in connection with the

 

12

 

operation
and maintenance of first-class office buildings in the City or Town wherein the
Building is located including, without limitation, insurance deductible amounts
and rental costs associated with the Building’s management office. From time to
time at the request of Tenant, but not more frequently than annually, Landlord
shall deliver to Tenant certificates evidencing the insurance maintained by
Landlord the cost of which is included in Operating Costs.

 

ESFA:
Costs incurred by Landlord with respect to the Building under the Declaration
of Easements and Shared Facilities Agreement dated as of March 13, 2003,
recorded with the Suffolk County Registry of Deeds in Book 30857, Page 290
and filed with the Suffolk County Registry District of the Land Court as
Document No. 652358 (“ESFA”)

 

(5)           Gross-Up Provision.
Notwithstanding the foregoing, in determining the amount of Operating Costs for
any calendar year or portion thereof falling within the term (including the
Base Year), Operating Costs for such period shall be adjusted to equal the
amount Operating Costs would have been for such period had occupancy of the
Building been at the Adjustment Percentage throughout such period. As used
herein, the term “Adjustment Percentage” shall be a percentage equal to the
higher of (i) ninety-five percent (95%), and (ii) the actual average
percentage of occupancy of the Building during the Operating Year. The
extrapolation of Operating Costs under this paragraph shall be performed by
appropriately adjusting the cost of those components of Operating Costs that
are impacted by changes in the occupancy of the Building.

 

B.            Tax Excess. If in any Tax Period the Taxes exceed the
Tax Base, Tenant shall pay to Landlord Tenant’s Proportionate Share of such
excess, such amount being hereinafter referred to as “Tax Excess”. If Taxes in
any Tax Period decrease below the Tax Base, Tax Excess for that Tax Period
shall be $0. Tax Excess shall be due when billed by Landlord. In implementation
and not in limitation of the foregoing, Tenant shall remit to Landlord pro rata
monthly installments on account of projected Tax Excess, reasonably calculated
by Landlord on the basis of the most recent Tax data or budget available. If
the total of such monthly remittances on account of any Tax Period is greater
than the actual Tax Excess for such Tax Period, Tenant may credit the
difference against the next installment of rental or other charges due to
Landlord hereunder, or refund such amount to Tenant if the Term of the Lease
has expired. If the total of such remittances is less than the actual Tax
Excess for such Tax Period, Tenant shall pay the difference to Landlord within
thirty (30) days after receipt of Landlord’s bill therefor. Such obligation to
reconcile the payment of Taxes for any Tax Period at the end of the term shall
survive the expiration of the Term.

 

Appropriate
credit against Tax Excess shall be given for any refund obtained by reason of a
reduction in any Taxes by the Assessors or the administrative, judicial or
other governmental agency responsible therefor. The original computations, as
well as

 

13

 

reimbursement
or payments of additional charges, if any, or allowances, if any, under the
provisions of this Section 3.02 shall be based on the original assessed
valuations with adjustments to be made at a later date when the tax refund, if
any, shall be paid to Landlord by the taxing authorities. Reasonable and
customary third party expenditures for legal fees and other expenses incurred
in obtaining the tax refund may be charged against the tax refund before the
adjustments are made for the Tax Period, if and to the extent such expenditures
were not originally included in the Taxes paid by Tenant for such Tax Period.

 

C.            Operating Expense Excess. If the Operating Costs in any Operating Year
exceed the Operating Costs in the Base Year, Tenant shall pay to Landlord
Tenant’s Proportionate Share of such excess, such amount being hereinafter
referred to as “Operating Expense Excess.” If Operating Costs in any Operating
Year decrease below Operating Costs in the Base Year, Operating Expense Excess
for that Operating Year shall be $0. Operating Expense Excess shall be due when
billed by Landlord. In implementation and not in limitation of the foregoing,
Tenant shall remit to Landlord pro rata monthly installments on account of
projected Operating Expense Excess, calculated by Landlord on the basis of the
most recent Operating Costs data or budget available. No later than one hundred
twenty (120) days after the end of the first calendar year and of each
succeeding calendar year during the Lease Term or fraction thereof at the end
of the term, Landlord shall render Tenant a statement in reasonable detail and
according to generally accepted accounting practices certified by an officer of
Landlord, showing for the preceding calendar year or fraction thereof, as the
case may be, the Operating Costs. Said statement to be rendered to Tenant also
shall show for the preceding year or fraction thereof, as the case may be, the
amounts already paid by Tenant on account of Operating Cost Excess and the
amount of Operating Cost Excess remaining due from, or overpaid by, Tenant for
the year or other period covered by the statement. If the total of such monthly
remittances on account of any Operating Year is greater than the actual
Operating Expense Excess for such Operating Year, Tenant may credit the
difference against the next installment of rent or other charges due to
Landlord hereunder, or refund such amount to Tenant if the Term of the Lease
has expired. If the total of such remittances is less than actual Operating
Expense Excess for such Operating Year, Tenant shall pay the difference to
Landlord within thirty (30) days after receipt of Landlord’s bill therefor.
Such obligation to reconcile the payment of Operating Costs for any Operating
Year at the end of the term shall survive the expiration of the Term.

 

D.            Part Years. If the Commencement Date or the Termination
Date occurs in the middle of an Operating Year or Tax Period, Tenant shall be
liable for only that portion of the Operating Expense Excess or Tax Excess, as
the case may be, in respect of such Operating Year or Tax Period represented by
a fraction the numerator of which is the number of days of the herein term
which falls within the Operating Year or Tax Period and the denominator of
which is three hundred sixty-five (365), or the number of days in said Tax
Period, as the case may be.

 

14

 

E.             Effect
of Taking. In
the event of any taking of the Building or the land upon which it stands under
circumstances whereby this Lease shall not terminate under the provisions of Section 7.06
then, for the purposes of determining Tax Excess, there shall be substituted
for the Tax Base originally provided for herein a fraction of such Tax Base,
the numerator of which fraction shall be the Taxes for the first Tax Period
subsequent to the condemnation or taking which takes into account such condemnation
or taking, and the denominator of which shall be the Taxes for the last Tax
Period prior to the condemnation or taking, which did not take into account
such condemnation or taking. Tenant’s Proportionate Share shall be adjusted
appropriately to reflect the proportion of the premises and/or the Building
remaining after such taking.

 

F.             Disputes,
etc.

 

Subject
to the provisions of this paragraph, Tenant shall have the right, at Tenant’s
cost and expense, to examine all documentation and calculations prepared in the
determination of Operating Cost Excess:

 

1.             Such documentation and calculation
shall be made available to Tenant at the offices where Landlord keeps such
records during normal business hours within thirty (30) days after Landlord
receives a written request from Tenant to make such examination.

 

2.             Any request for examination in
respect of any calendar year may be made no more than one (1) year after
Landlord advises Tenant of the actual amount of Operating Costs in respect of
such calendar year and provides to Tenant the year-end statement required under
Paragraph C of this Section 3.02, provided however, if such examination
results in a determination that Tenant was overcharged with respect to a
calendar year, then Tenant shall have the right to review Landlord’s books as
to the erroneous items for the two calendar years immediately prior to the
calendar year in question; provided, however, that in no event shall Tenant
have the right to make such an examination more than once with respect to any
calendar year.

 

3.             If, after the examination by Tenant
of Landlord’s books and records pursuant to this Section 3.02 with respect
to any Operating Year, it is finally determined that: (i) Tenant has made
an overpayment on account of Operating Costs, Landlord shall credit such
overpayment against the next installment(s) of Annual Fixed Rent thereafter
payable by Tenant, except that if such overpayment is determined after the
termination or expiration of the term of this Lease, Landlord shall promptly
refund to Tenant the amount of such overpayment less any amounts then due from
Tenant to Landlord, or (ii) Tenant has made an underpayment on account of
Operating Expenses Allocable to the Premises, Tenant shall, within thirty (30)
days of such determination, pay such underpayment to

 

15

 

Landlord. Nothing contained
herein shall affect the right of Landlord to contest the findings of any such
examination.

 

4.             Such examination may not be made by any examiner of
Tenant that is being paid by Tenant on a contingent fee basis.

 

5.             As a condition to performing any
such examination, Tenant and its examiners shall be required to execute and
deliver to Landlord an agreement, in form reasonably acceptable to Landlord and
Tenant, agreeing to keep confidential any information which it discovers about
Landlord or the Building in connection with such examination.

 

Any
obligations under this Section 3.02 which shall not have been paid at the
expiration or sooner termination of the term of this Lease shall survive such
expiration and shall be paid when and as the amount of same shall be determined
to be due.

 

G.            Miscellaneous. In addition, (i) the following phrase
shall be added after the word “Rent” wherever it appears in Section 8.03
of the Lease and at the end of the first (1st) sentence of Section 10.02
of the Lease: “including, without limitation, any amount of Operating Expense
Excess and Tax Excess”.

 

7.             EXTENSION OPTIONS

 

Tenant shall continue to
have two (2) five (5) year Extension Options in respect of all
Premises, pursuant to Section 2.05 of the Lease, as amended by Paragraph
11 of the Eighth Amendment to Lease, except that said Section 2.05 shall
be modified as follows:

 

(i) the
phrase “one (1) year prior to the Initial Term Expiration Date” appearing
in line 8 of Section 2.05(a) of the Lease is hereby deleted and the
phrase “eighteen (18) months prior to the Extended Termination Date” is hereby
substituted in its place;

 

(ii) the phrase “one (1) year”
appearing in line 10 of said Section 2.05(a) is hereby deleted and
the phrase “eighteen (18) months” is hereby substituted in its place;

 

(iii) the phrase “one
hundred (100%) percent” in Section 2.05(c) of the Lease is hereby
deleted and the phrase “ninety-five (95%) percent” is hereby substituted in its
place;

 

(iv) the phrase “(i.e.,
space containing at least 100,000 rentable square feet of floor area)” shall be
inserted after the phrase “comparable square footage” appearing in the second
paragraph of Section 2.05(c);

 

(v) clause (ii) of
Section 2.05(c) is hereby deleted and the following is substituted in
its place: “(ii) the rental shall reflect the then condition of the
Premises and all

 

16

 

residual value of any
improvements to the Premises, other than any improvements, alterations or
finishes in the Premises paid for by Tenant that are above the level of
first-class business offices in the Building and other first class buildings in
Boston.

 

(vi) the phrase “twelve
(12) months” appearing in line 14 of the third paragraph of Section 2.05(d) of
the Lease is hereby deleted and the phrase “eighteen (18) months” is hereby
substituted in its place; and

 

(vii) Section 2.05(e) is
hereby deleted in its entirety and the following is hereby substituted in its
place:

 

“(e) Conditions
Precedent to Exercise. Notwithstanding any contrary provision of this Section 2.05
or any other provision of this Lease, any Extension Option and any exercise by
Tenant of any Extension Option shall be void and of no effect unless on the
First Extension Exercise Date or the Second Extension Exercise Date, as
applicable, and on the First Extension Term Commencement Date and the Second
Extension term Commencement Date, as applicable, (i) this Lease is in full
force and effect (ii) no Event of Default on the part of Tenant has
occurred and is continuing under this Lease, and (iii) Tenant shall not
have sublet in the aggregate more than thirty-three percent (33%) of the
rentable floor area of the Premises to any entity or entities other than a
Tenant Affiliate (as defined in Section 6.04(f)); provided, however, that
Landlord reserves the right to waive in writing the provisions of this subsection 2.05(e).”

 

In implementation of the
foregoing, Paragraph 11 of the Eighth Amendment is hereby deleted and is of no
further force or effect.

 

8.             TENANT’S EXPANSION OPTION

 

On
the conditions (which conditions Landlord may waive, at its election, by
written notice to Tenant at any time) that Tenant is not in default of its
covenants and obligations under the Lease beyond applicable notice and cure
periods, and that Tenant shall not have sublet in the aggregate more than
thirty-three percent (33%) of the rentable floor area of the Premises to any
entity or entities other than a Tenant Affiliate, Tenant shall have the option
to lease the entirety of the [/*/ CONFIDENTIAL TREATMENT REQUESTED] floor of
the Building (“Expansion Area”). The Expansion Area contains approximately
28,511 rentable square feet, and is substantially as shown on Exhibit A
attached hereto. The expansion option contained herein completely supercedes
all previously existing expansion options of Tenant under the Lease.

 

A.            Exercise of Rights to Expansion Area

 

Tenant may exercise its
option to lease the Expansion Area by giving written notice thereof (“Exercise
Notice”) to Landlord on or before April 1, 2007. If

 

[/*/ CONFIDENTIAL
TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN
FILED WITH THE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

 

 

17

 

Tenant
fails timely to give such notice, Tenant shall have no further right to lease
the Expansion Area, time being of the essence of this Paragraph 8. Upon the
timely giving of such notice, Landlord shall lease and demise to Tenant, and
Tenant shall hire and take from Landlord, the Expansion Area, without the need
for further act or deed by either party, for the term and upon all of the same
terms and conditions of this Lease, except as hereinafter set forth.

 

B.            Lease Provisions Applying to Expansion Area

 

The leasing to Tenant of the
Expansion Area shall be upon all the same terms and conditions of the Lease
except as follows:

 

(1)           Term Commencement Date

 

The Term Commencement Date
in respect of the Expansion Area (the “Expansion Commencement Date”), shall be
the later of: (i) April 1, 2008, and (ii) the date that the
then-current occupant vacates the Expansion Area. While Tenant’s right to
exercise its option to lease the Expansion Area remains outstanding, Landlord
will not enter into any lease with any entity other than Tenant or a Tenant
Affiliate that will permit such entity to occupy all or any portion of the
Expansion Area after March 31, 2008. Landlord agrees to use commercially
reasonable efforts to deliver the Expansion Area to Tenant on or before April 1,
2008, which efforts shall include, if necessary, the commencement and
prosecution of a summary process action to recover possession of such space. If
Landlord fails to deliver possession of the Expansion Area to Tenant on or
before April 1, 2008, then, as Tenant’s remedy therefor, Tenant shall
receive a credit against Base Rent due hereunder in an amount equal to the
excess of (a) the base rent payable by the then-current occupant of the
Expansion Area as increased pursuant to the holdover provisions of such
occupant’s lease with respect to the Expansion Area over (b) the Base Rent
determined under Paragraph (2) below with respect to the Expansion Area.
Such credit shall be calculated on a per  diem basis for each day
that elapses after April 1, 2008, and before the earlier to occur of (x)
the Expansion Commencement Date and (y) June 1, 2008. In addition to the
foregoing, if the Expansion Commencement Date has not occurred on or before June 1,
2008, then Tenant shall receive a credit against Base Rent payable hereunder in
the amount of the per  diem Base Rent determined under Paragraph (2) below
with respect to the Expansion Area for each day that elapses after June 1,
2008, and before the occurrence of the Expansion Commencement Date.
Notwithstanding the foregoing, if the per  diem credit that tenant
would receive for the period from April 1, 2008 through June 1, 2008
exceeds the per  diem credit that Tenant would receive after June 1,
2008, then, in lieu of the credit set forth above applicable after June 1,
2008, Tenant shall continue to receive, if the Expansion Commencement Date has
not occurred on or before June 1, 2008, the previously applicable rent
credit.

 

18

 

(2)           Base Rent

 

The Base Rent payable in
respect of the Expansion Area shall be 100% of the Fair Rental Value, as
defined in Section 2.05(c) of the Lease, as amended, of the Expansion
Area as of the Expansion Commencement Date, taking into consideration an amount
of Base Operating Costs and Base Taxes for the Expansion Area equal to the
amount of Operating Costs and Taxes payable under the Lease for 2008, as well
as any improvement allowances, landlord’s work and other inducements. To assist
Tenant in determining whether to exercise the Expansion Option, upon a written
request given by Tenant to Landlord not earlier than January 1, 2007,
Landlord shall give written notice to Tenant, within thirty (30) days after
Tenant’s request, of Landlord’s determination of the Fair Rental Value of the
Expansion Area as of the Expansion Commencement Date.

 

(3)           Condition of Expansion Area

 

Except
as may be otherwise agreed to by the parties, the Expansion Area shall be
delivered by Landlord and accepted by Tenant “as-is”, in its then (i.e. as of
the Expansion Commencement Date), state of construction, finish and decoration,
without any obligation on the part of Landlord to prepare or construct the
Expansion Area for Tenant’s occupancy. In implementation of the foregoing,
Landlord shall have no obligation under Section 2.03 of the Lease in
respect of such Expansion Area.

 

C.            Notwithstanding the fact that Tenant’s
exercise of the above-described expansion option shall be self-executing, as
aforesaid, the parties hereby agree to execute a lease amendment reflecting the
addition of the Expansion Area promptly after the determination of the Base
Rent for the Expansion Area. The execution of such lease amendment shall not be
deemed to waive any of the conditions to Tenant’s exercise of the herein
expansion options, unless otherwise specifically provided in such lease
amendment.

 

9.             RIGHT OF FIRST OPPORTUNITY

 

A.           Tenant shall continue to have the
Right of First Opportunity pursuant to Section 2.07 of the Lease, except
that the phrase “Floors [/*/ CONFIDENTIAL TREATMENT REQUESTED]” in the first
paragraph of Section 2.07(a) of the Lease is deleted and the phrase “Floor
[/*/ CONFIDENTIAL TREATMENT REQUESTED]” is substituted in its place.

 

B.            The following is hereby added to the
end of the first paragraph of Section 2.07(a) of the Lease:

 

“Notwithstanding
anything herein to the contrary, (a) Tenant’s Right of First Opportunity
with respect to Floors [/*/ CONFIDENTIAL TREATMENT REQUESTED] is subject and
subordinate to the rights of occupants contained in existing leases (as of the
date of the Ninth Amendment to Lease) including any extensions or renewals
thereof made pursuant to any options (including, without limitation, any rights
of first offer or similar rights) contained in such leases at

 

[/*/ CONFIDENTIAL
TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE
COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT
OF 1934, AS AMENDED.

 

 

 

19

 

such
time, except to the extent such existing leases are expressly subject and
subordinate t o the rights of Tenant under this Lease, which existing rights
are listed on Exhibit F attached hereto; and (b) Tenant’s Right of
First Opportunity with respect to Floors [/*/ CONFIDENTIAL TREATMENT REQUESTED]
is subject and subordinate to (i) any expansion options and/or rights of
first offer with respect to such space under leases existing as of the date of
the Ninth Amendment to Lease and (ii) the rights of the named tenants
contained in the existing leases (as of the date of the Ninth Amendment to
Lease) of such space as such leases may be extended or renewed by such named
tenants, whether or not any such extension or renewal is pursuant to an option
contained in such lease (i.e., Landlord shall have the right to extend the
tenancy of the named tenant under a lease on Floors [/*/ CONFIDENTIAL TREATMENT
REQUESTED], even if the same is not made pursuant to an option contained in the
applicable lease, without giving Tenant a Right of First Opportunity hereunder,
provided that any successor to such named tenant under such lease may only
extend the occupancy in such space pursuant to an option contained in such
lease that is enforceable by such successor).”

 

C.            The following is hereby added to the
end of the second Paragraph of Section 2.07(a) of the Lease:

 

“Notwithstanding the
foregoing or anything contained in Landlord’s notice, the term of any lease of
any First Opportunity Space entered into under this Section 2.07 shall be
coterminous with the Term of this Lease, including the Extension Options.”

 

D.            Section 2.07(b) of the Lease is hereby deleted
in its entirety and the following is substituted in its place:

 

“(b)         Conditions Precedent to Exercise. Notwithstanding any
contrary provision of this Section 2.07 or any other provision of this
Lease, any Right of First Opportunity and any exercise by Tenant of any Right
of First Opportunity shall be void and of no effect unless on the date Tenant
notifies Landlord that it is exercising the Right of First Opportunity (the “First
Opportunity Exercise Date”) and on the commencement date of the lease agreement
for such First Opportunity Space (the “First Opportunity Commencement Date”) (i) this
Lease is in full force and effect, (ii) no Event of Default on the part of
Tenant has occurred and is continuing under this Lease, (iii) Tenant shall
not have sublet in the aggregate more than thirty three percent (33%) of the
rentable floor area of the Premises to any entity or entities other than a
Tenant Affiliate, (iv) Tenant shall not have assigned this Lease to any
entity other than a Tenant Affiliate, and (v) not less than twenty-four
(24) months remain in the Term of this Lease (provided, however, that if less
than twenty-four (24) months remain in the Term but Tenant has available any
Extension Option, Tenant may, simultaneously with giving Landlord the notice
contemplated by Section 2.07(a), exercise Tenant’s next available
Extension Option so as to satisfy the condition set forth in this clause (v));
provided, however, that Landlord reserves the right to waive in writing the
provisions of this Section 2.07(b).”

 

[/*/ CONFIDENTIAL
TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN
FILED WITH THE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

 

 

20

 

10.          TENANT’S GENERATOR

 

A.            Tenant, subject to Landlord’s review and approval of
Tenant’s plans therefor, which approval shall not be unreasonably withheld
conditioned or delayed, shall have the right to install up to two (2) supplemental
generators with a power output not to exceed, in the aggregate, 2,000 kilowatts
and a fuel storage system with a capacity not to exceed a 48-hour fuel supply
(collectively, the “Generators”) to provide emergency additional electrical
capacity to the Premises during the Term. The installation of the Generator and
all appurtenant cables and other installations shall be at Tenant’s sole
expense, but subject to Landlord’s Contribution if elected by Tenant as
provided herein. The Generators shall be placed at a location on the Property
designated by Landlord and approved by Tenant, which approval shall not be
unreasonably withheld (the “Generator Area”). If the Generator Area is located
in an indoor location, Landlord shall, at Landlord’s cost, separately demise
the location of the Generator Area and deliver the Generator Area to Tenant in
storage room shell condition, including electric supply for lighting only to
such space. In any event, Tenant shall have the right to install, at its
expense, electrical service to the Generator Area, whether the same is in an
indoor location or an outdoor location. If the Generator Area is located in an
outdoor location, the Generator Area shall be delivered to Tenant in “as-is”
condition, without any obligation on the part of Landlord to prepare or
construct the Generator Area for Tenant’s use. Notwithstanding the foregoing,
Tenant’s right to install the Generators shall be subject to Landlord’s
reasonable approval of the manner in which the Generators are installed, the
manner in which any fuel storage and fuel pipe is installed, the manner in
which any ventilation and exhaust systems are installed, the manner in which
any cables are run to and from the Generators to the Premises and the measures
that will be taken to eliminate any vibrations or sound disturbances from the
operation of the Generators, including, without limitation, any necessary 2
hour rated fire enclosures or sound insulation. Landlord hereby agrees that it
will provide reasonable means of access to run cables between the Generators
and the Premises, whether through an air shaft, chase or other conduit or a
combination thereof. In the event that it is technologically feasible to
utilize the existing conveyor chase to run cables to connect the Premises to
the Generators, and if Landlord shall refuse to permit use of such chase, any
additional cost reasonably incurred by Tenant to utilize an alternative means
of running such cable shall be reimbursed by Landlord to Tenant promptly after
written notice from Tenant accompanied by copies of invoices evidencing such
cost. Landlord shall have the right to require an enclosure reasonably
acceptable to Landlord and Tenant to hide or disguise the existence of the
Generators and to minimize any adverse effect that the installation and/or
operation of the Generators may have on the appearance of the Building and
Property. Tenant shall be solely responsible for obtaining at its expense all
necessary governmental and regulatory approvals and permits and for the cost of
installing, operating, maintaining and removing the Generators. Tenant shall
not install or operate the Generators until Tenant has obtained and submitted
to Landlord copies of all required governmental permits, licenses and
authorizations necessary for the installation and operation of the Generators.
In addition to, and without limiting Tenant’s obligations under the Lease,
Tenant shall comply with all applicable environmental and fire prevention Laws

 

21

 

pertaining to Tenant’s use
of the Generator Area. Tenant shall also be responsible for the cost of all
utilities consumed in the operation of the Generators.

 

B.            Tenant shall be responsible for assuring that the
installation, maintenance, operation and removal of the Generators shall in no
way damage any portion of the Building or Property. To the maximum extent
permitted by Law, the Generators and all appurtenances in the Generator Area
shall be at the sole risk of Tenant, and, subject to Section 7.05,
Landlord shall have no liability to Tenant if the Generators or any appurtenances
installations are damaged, except as a result of gross the negligence or
willful misconduct of Landlord or any Landlord Related Parties. Subject to Section 7.05,
Tenant agrees to be responsible for any damage caused to the Building or
Property in connection with the installation, maintenance, operation or removal
of the Generators and, in accordance with the terms of Section 7.04 of the
Lease, to indemnify, defend and hold Landlord and the Landlord Related Parties
harmless from all liabilities, obligations, damages, penalties, claims, costs,
charges and expenses, including, without limitation, reasonable architects’ and
attorneys’ fees (if and to the extent permitted by Law), which may be imposed
upon, incurred by, or asserted against Landlord or any of the Landlord Related
Parties in connection with the installation, maintenance, operation or removal
of the Generators, including, without limitation, any environmental and
hazardous materials claims. In addition to, and without limiting Tenant’s obligations
under the Lease, Tenant covenants and agrees that the installation and use of
the Generators and appurtenances shall not adversely affect the insurance
coverage for the Building. If for any reason, the installation or use of the
Generators, the Tank and/or the appurtenances shall result in an increase in
the amount of the premiums for such coverage, then Tenant shall be liable for
the full amount of any such increase.

 

C.            Tenant shall be responsible for the installation,
operation, cleanliness, maintenance and removal of the Generators and the
appurtenances, all of which shall remain the personal property of Tenant, and
shall be removed by Tenant at its own expense at the expiration or earlier
termination of the Lease. Tenant shall repair any damage caused by such
removal, including the patching of any holes to match, as closely as possible,
the color surrounding the area where the Generators and appurtenances were
attached. Such maintenance and operation shall be performed in a manner to
avoid any unreasonable interference with any other tenants or Landlord. Tenant
shall take the Generator Area “as is” in the condition in which the Generator
Area is in as of the Commencement Date, without any obligation on the part of
Landlord to prepare or construct the Generator Area for Tenant’s use or
occupancy, other than to deliver any interior Generator Area in Storage Room Shell
Condition. Without limiting the foregoing, Landlord makes no warranties or
representations to Tenant as to the suitability of the Generator Area for the
installation and operation of the Generator. Tenant shall have no right to make
any changes, alterations, additions, decorations or other improvements to the
Generator Area without Landlord’s prior written consent, which shall not be unreasonably
withheld, conditioned or delayed. Tenant agrees to maintain the Generators,
including without limitation, any enclosure installed around the Generators in
good condition and repair. Tenant shall be responsible for performing any
maintenance and

 

22

 

improvements to any
enclosure surrounding the Generator so as to keep such enclosure in good
condition.

 

D.            Tenant, subject to the rules and regulations enacted
by Landlord and to Landlord’s reasonable security requirements, shall have
access to the Generators and their surrounding area at all times for the
purpose of installing, repairing, maintaining and removing said Generators.

 

E.             Tenant shall only test the
Generators before or after Normal Business Hours and at a time mutually agreed
to in writing by Landlord and Tenant in advance. Tenant shall be permitted to
use the Generator Area solely for the maintenance and operation of the
Generators, and the Generators and Generator Area are solely for the benefit of
Tenant. All electricity generated by the Generators shall be solely supplied to
the Premises.

 

F.             Except for electric service for
lighting in the event that the Generator Area is located in an indoor location,
Landlord shall no obligation to provide any services, including, without
limitation, electric current, to the Generator Area. Tenant shall have no right
to sublet the Generator Area or to assign its interest hereunder except in
connection with an assignment of the Lease.

 

G.            Landlord may from time to time elect
to relocate the Generator Area and the Generators to another location on the
Property. Landlord shall give Tenant written notice of any relocation not less
than ninety (90) days before commencing any such relocation work. Any such relocation
shall be performed at Landlord’s sole expense in accordance with plans and
specifications prepared by Landlord and approved by Tenant in writing, which
approval shall not be unreasonably withheld. In connection with any such
relocation, Landlord shall insure that Tenant has access to a back-up power
supply equivalent to that provided by the Generators at all times during such
relocation.

 

11.          PARKING

 

A.           The parties hereby acknowledge that,
pursuant to Section 2.08 of the Lease, as amended by Paragraph 6 of the
First Amendment to Lease, Paragraph 6 of the Second Amendment to Lease,
Paragraph 6 of the Fourth Amendment to Lease, Paragraph 10 of the Sixth
Amendment to Lease, Paragraph 9 of the Seventh Amendment to Lease and Paragraph
8 of the Eighth Amendment to Lease, Landlord will make available to Tenant
fifty-seven (57) automobile monthly parking permits for use in The Garage at
100 Clarendon Street (“Unreserved Parking Permits”). Said use of the Unreserved
Parking Permits shall be upon all of the same terms and conditions as set forth
in said Section 2.08 of the Lease, as amended. Nothing contained herein
shall require Tenant to utilize all fifty seven (57) Unreserved Parking Permits
at any time.

 

B.           In addition, Landlord shall use
reasonable efforts to make available to Tenant up to six (6) automobile
monthly parking permits (“Reserved Parking Permits”) in

 

23

 

the reserved parking area (“Reserved
Parking Area”) located at the entrance to The Garage at 100 Clarendon Street.
Said use of the Reserved Parking Permits shall be upon all of the same terms
and conditions as set forth in said Section 2.08 of the Lease, as amended.
Tenant shall pay for said Reserved Parking Permits, as additional rent, at the
prevailing rate for reserved parking permits in The Garage at 100 Clarendon
Street, as such rate may be increased, from time to time. The parties hereby
acknowledge that, as of the date of the Execution Date of this Ninth Amendment
to Lease, another tenant in the Building has the exclusive right to the
Reserved Parking Area. Landlord will use reasonable efforts to cause such
tenant to relinquish up to six (6) spaces in the Reserved Parking Area, so as
to make the same available for Tenant’s use.

 

C.            Any reference to the Hancock Garage in the Lease is
hereby deleted and the phrase “The Garage at 100 Clarendon Street”  is substituted in its place.

 

12.           BROKERAGE

 

Tenant and Landlord each
warrant to the other that it has had no dealings with any broker or agent in
connection with this Ninth Amendment to Lease other than CBRE/Lynch Murphy Walsh
Advisors and Meredith & Grew, Inc. (the “Brokers”), and each covenants to
defend (with counsel reasonably approved by the other party), hold harmless and
indemnify the other party from and against any and all costs, expense or
liability for any compensation, commission and charges claimed by an broker or
agent except the Brokers, arising out of the warranting party’s dealings in
connection with this Ninth Amendment to Lease or the negotiation thereof.
Landlord shall pay the commissions due to the Brokers pursuant to the terms of
a separate agreement.

 

13.           NOTICES

 

For all purposes of the
Lease, the notice address for Landlord is as follows:

 

100 & 200 Clarendon LLC

c/o Beacon Capital Partners LLC

One Federal Street

Boston, Massachusetts 02110

 

with a copy to:

 

Beacon Capital Partners
Management LLC

200 Clarendon Street

Boston, Massachusetts 02116

Attention: General Manager

 

The notice address for
Tenant shall be at the Premises, to the attention of Andrew Joseph, with a copy
to Edward Sargavakian, at the same address,

 

24

 

and a copy to:

 

Goodwin
Procter LLP

Exchange Place

53
State Street, Boston, MA 02109

Attention: Andrew C. Sucoff, Esq.

 

14.           LANDLORD DEFAULT

 

Landlord shall not be deemed
to be in default of its obligations under the Lease unless Tenant has given
Landlord written notice of such default, and Landlord has failed to cure said
default within thirty (30) days after Landlord receives such notice or such
longer period of time as Landlord may reasonably require to cure such default,
provided that Landlord commences such cure within such 30 day period and
thereafter continuously and diligently prosecutes such cure to completion.

 

15.           DELETED LEASE PROVISIONS

 

Sections 1.02(h), 1.02(w),
2.03, 2.06, 8.01(c), and the last three sentences of Section 6.04(f) of the
Lease, Paragraph 5 of the First Amendment to Lease, Paragraph 5 of the Second
Amendment to Lease, Paragraph 4 of the Revised and Corrected Third Amendment to
Lease, Paragraph 5 of the Fourth Amendment to Lease, the entirety of the Fifth
Amendment to Lease, Paragraphs 8 and 11 through 17 of the Sixth Amendment to
Lease, Paragraphs 7 and 12 of the Seventh Amendment to Lease and Paragraphs 6
and 11 of the Eighth Amendment to Lease are hereby deleted and are of no
further force or effect.

 

16.           SUBORDINATION

 

The following is added to
the end of Section 6.09 of the Lease:

 

“Notwithstanding anything to
the contrary in this Section 6.09 contained, as to any future mortgages, ground
leases, and/or underlying lease or deeds of trust, the herein provided
subordination and attornment shall be effective only if the mortgagee, ground
lessor or trustee therein, as the case may be, agrees, by a written instrument
in recordable form and in the customary form of such mortgagee, ground lessor,
or trustee (in the form attached hereto as Exhibit D that, as long as Tenant
shall not be in terminable default of the obligations on its part to be kept
and performed under the terms of this Lease, this Lease will not be affected
and Tenant’s possession hereunder will not be disturbed by any default in, termination,
and/or foreclosure of, such mortgage, ground lease, and/or underlying lease or
deed of trust, as the case may be.”

 

25

 

17.           EXTRA SERVICES

 

Section 5.02(a) of the Lease
is deleted and the following is substituted in its place:

 

“(a) Heating, ventilation,
air conditioning or extra service provided by Landlord to Tenant (i) during
hours other than Extended Business Hours, (ii) on days other than Business
Days, said heating, ventilation and air conditioning or extra service to be
furnished solely upon the prior written request of Tenant given with such
advance notice as Landlord may reasonably require at a reasonable charge not in
excess of Landlord’s actual cost to provide such service. The parties hereby
acknowledge that, as of the Execution Date of this Ninth Amendment to Lease,
the overtime charge based on Landlord’s actual costs for HVAC is [/*/ CONFIDENTIAL
TREATMENT REQUESTED] per hour, as such charge may be increased by Landlord,
from time to time.”

 

18.           DEFINITION OF COMPLEX

 

Section 5.01(c)(2) is hereby
deleted and the following is substituted in its place:

 

“The “Complex” shall mean
and include only the following buildings located in Boston and numbered as: 200
Berkeley, 197 Clarendon Street and 200 Clarendon Street.”

 

19.           HANCOCK MARKS

 

Tenant shall not use any
Hancock Marks, as hereinafter defined, in a manner, in conjunction with, or in
a recognizable relationship to any persons, entities, materials or Media, as
hereinafter defined, that are Objectionable, as hereinafter defined. Tenant
acknowledges and agrees that any right, benefit or protection available to the
Landlord hereunder with respect to use of the name “John Hancock Tower” shall
also be deemed to accrue to the benefit of, and may be exercised directly by,
John Hancock Life Insurance Company or any of its Affiliates, as hereinafter
defined.

 

For the purposes of this
Paragraph 19, the following terms shall have the following definitions:

 

“Affiliates” means, with
respect to any person or entity, any corporation, partnership or other business
entity which controls or is controlled by, or is under common control with such
person or entity, as applicable. For the purpose of this definition, the word “control”
(including, with correlative meanings, “controlled by” and “under common
control with”) as used with respect to any corporation, partnership or other
business entity, shall mean the possession of the power to direct or cause the
direction of the management and policies of such corporation, partnership or
other business entity, whether through the ownership of voting securities,
interests, contract or otherwise.

 

[/*/ CONFIDENTIAL
TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN
FILED WITH THE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

26

 

“Hancock
Marks” means, collectively, the Name and Signature, and such other logos,
service marks, trademarks, domain names (including johnhancocktower.com,
johnhancocktower.net, and johnhancocktower.org), and copyrights, whether
registered or unregistered, proprietary to John Hancock Life Insurance Company
with respect to the Building (including, without limitation, the marks
registered with the USPTO under Registration Nos. 1287236, 1502565 and 1494582)
or with respect to which Landlord provides Tenant with notice, and all
Likenesses.

 

“Likeness”
means a photograph, replica, sketch, drawing, image or any other visual or two
dimensional or three dimensional representation of the Building, which
photograph, replica, sketch, drawing, image or other representation does not
include or display the Name, Plain Name, Signature, or any such other logos,
service marks, trademarks, and copyrights, whether registered or unregistered,
proprietary to John Hancock Life Insurance Company with respect to the
Building.

 

“Medium”
(or “Media”) means any communications or storage medium, regardless of method
of storage, compilation or memorialization, if any, including without
limitation, physical storage or representation, electronic storage, graphical
(including designs and drawings) or photographic representation, or writings.

 

“Name” means “John Hancock
Tower”.

 

“Objectionable”
means any activity or material that: (a) is libelous or defamatory,
disparaging, pornographic, sexually explicit, unlawful or plagiarized; (b) a
reasonable person would consider harassing, abusive, threatening, harmful,
vulgar, profane, obscene, excessively violent, racially, ethnically or
otherwise objectionable or offensive in any way; (c) constitutes a breach of
any person’s privacy or publicity rights, a misrepresentation of facts, hate speech
or an infringement of any third party’s intellectual property rights of any
kind, including without limitation, copyright, patent, trademark, industrial
design, trade secret, confidentiality or moral rights; (d) violates or
encourages others to violate any applicable law; or (e) would have a material
adverse effect (1) on the reputation or business of Landlord or John Hancock
Life Insurance Company or (2) on the reputation of the Building or (3) on the
goodwill associated with the Marks or (f) would be materially detrimental to
the marketing or leasing of the Building.

 

“Signature”
means the script logo associated with the name “John Hancock,” as registered
with the USPTO under Registration No. 0557033.

 

27

 

The Signature, as depicted
in the drawing on file with the USPTO, consists of a substantial facsimile of
the signature of John Hancock (1737-1793), patriot of the American Revolution,
as said signature appears on the Declaration of Independence.

 

“USPTO” means the United
States Patent and Trademark Office.

 

20.           MISCELLANEOUS AMENDMENTS

 

A.            The second paragraph of Section 2.01 (b) of the Lease is
deleted in its entirety and the following is substituted in its place:

 

“During the Term, Tenant
shall have the right to use, in common with other tenants, the food services,
private dining rooms and meeting rooms, conference center, fitness center and
other amenities from time to time located within or made available to occupants
of the John Hancock Property Complex (as defined in Section 5.01(c)(2)), but
only if and to the extent such amenities are made available by Landlord for use
by any other tenant of the John Hancock Property Complex. Tenant’s right to use
such amenities shall be on such terms, during such time periods and subject to
such rules and regulations as are determined by Landlord and uniformly applied
to such other tenant.”

 

B.            Section 5.01(a) of the Lease is hereby amended by
deleting from the second paragraph of Subsection (v) thereof the following
phrase: “, for so long as the Building is owned by John Hancock or a John
Hancock Affiliate”.

 

C.            Section 5.06 of the Lease is deleted in its entirety and
the following is substituted in its place:

 

“5.06    Exclusions.
 so long as (i) no Event of Default on
the part of Tenant has occurred and is continuing under this Lease, (ii) Tenant
shall not have sublet in the aggregate more than thirty-three percent (33%) of
the rentable floor area of the Premises to any entity or entities other than a
Tenant Affiliate and (iii) Tenant shall not have assigned this Lease to any
entity other than a Tenant Affiliate, Landlord shall not enter into a lease of
space for premises located on Floors [/*/ CONFIDENTIAL TREATMENT
REQUESTED] of the Building with any of the Excluded Companies (defined below)
or any subsidiary that is wholly owned and controlled by any of the Excluded
Companies and that is engaged in the financial services or mutual fund
industry, which lease permits the subject premises to be used for any of the following
services: securities custody, fund accounting, transfer agency, securities
lending, mutual fund administration or foreign exchange. The “Excluded
Companies” are: [/*/ CONFIDENTIAL TREATMENT REQUESTED]. The foregoing
provision is not intended

 

[/*/ CONFIDENTIAL
TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN
FILED WITH THE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

28

 

to, nor shall it be enforced
to, restrict any bank from conducting its banking operations on such floors of
the Building.

 

D.            Section 10.20 of the Lease is hereby amended by inserting
the following at the end thereof:

 

“The requirements of this
Section 10.20 shall not apply during such periods, if any, that Tenant’s
financial information is publicly available.”

 

E.             Landlord agrees that a
representative of Landlord will meet with a representative of Tenant annually
upon the request of Tenant to discuss Tenant’s space requirements and the
upcoming availability of vacant space in the Building.

 

F.            Section 6.07 of the Lease is hereby amended by inserting
the following language at the end thereof:

 

Prior to entering the
Premises for any reason, except in case of emergency, Landlord and any
employees, agents, contractors or representatives of Landlord (collectively, a “Landlord
Agent”) shall secure appropriate authorization (an “Authorization”) from
Tenant, which may be in the form of a badge or other identification. Tenant
shall act promptly upon any request for an Authorization, which Authorization
shall not be unreasonably withheld. The Authorization will permit the Landlord
Agent access to certain specific areas within the Premises where services are
to be performed by Landlord Agent for the benefit of Tenant and at the
direction of Tenant or where Landlord requires access in order to perform its
obligations under this Lease. With respect to any Landlord Agent who performs
services on a regular basis, such as premises cleaning personnel, the
Authorization issued to such Landlord Agent shall permit access on a regular
basis consistent with the schedule of services to be performed by such Landlord
Agent. Except in case of emergency, Landlord Agent shall only access those
certain areas where Tenant has specifically permitted access and only when and
to the extent necessary to perform the Services. Landlord will not, and will
use reasonable efforts to cause Landlord Agents not to, at any time, reveal to
any person, association or company, any of the trade secrets or confidential
information concerning Tenant, research and development activities of Tenant,
marketing plans and strategies of Tenant, or business or finances of Tenant, so
far as they have come or may come to the knowledge of Landlord or Landlord
Agent (except for information that (i) becomes generally available to the
public other than as a result of a disclosure by Landlord or any Landlord
Agent, or (ii) was available to Landlord on a non-confidential basis prior to
its disclosure to Landlord by Tenant or its representatives), and Landlord and
Landlord Agent shall not use or attempt to use any such information in any
manner which may injure or cause loss or may be calculated to injure or cause
loss whether directly or indirectly to Tenant. Notwithstanding the foregoing,
Landlord may disclose such financial information as may be provided by Tenant
to Landlord to actual or

 

29

 

prospective lenders or
purchasers of the Property and/or actual or prospective investors in Landlord
or any of its affiliates and to Landlord’s consultants, attorneys, and
accountants, so long as any person or entity to whom Landlord discloses such
information agrees to keep such information confidential. In addition, Landlord
and any Landlord Agent may disclose any information (a) to the extent required
by any law, regulation, or order of any public authority or court, and (b) in
connection with any litigation between Landlord and Tenant under the Lease.
Further, Landlord shall not make, use or permit to be used any notes,
memoranda, drawings, specifications, programs, data or other materials of any
nature relating to any matter within the scope of the business of Tenant or
concerning any of its dealings or affairs, otherwise than for the benefit of
Tenant and during the performance of any Tenant requested or contracted service
under this Lease.

 

21.           As hereby amended, the Lease is ratified, confirmed and
approved in all respects.

 

EXECUTED under seal as of
the date first above written.

 

	
  LANDLORD:

  	
  TENANT:

  
	
  100 & 200 CLARENDON
  LLC

  	
  INVESTORS BANK & TRUST

  
	
   

  	
  COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Philip
  J. Brannigan, Jr.

  	
   

  	
  By:

  	
   

  	
   

  
	
  Name:

  	
  Philip
  J. Brannigan, Jr.

  	
   

  	
  Name:

  	
   

  	
   

  
	
  Title:

  	
               Vice
  President

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
  Hereunto Duly Authorized

  	
   

  	
  Hereunto Duly Authorized

  
										

 

30

 

prospective lenders or
purchasers of the Property and/or actual or prospective investors in Landlord
or any of its affiliates and to Landlord’s consultants, attorneys, and
accountants, so long as any person or entity to whom Landlord discloses such
information agrees to keep such information confidential. In addition, Landlord
and any Landlord Agent may disclose any information (a) to the extent required
by any law, regulation, or order of any public authority or court, and (b) in
connection with any litigation between Landlord and Tenant under the Lease.
Further, Landlord shall not make, use or permit to be used any notes,
memoranda, drawings, specifications, programs, data or other materials of any
nature relating to any matter within the scope of the business of Tenant or
concerning any of its dealings or affairs, otherwise than for the benefit of
Tenant and during the performance of any Tenant requested or contracted service
under this Lease.

 

21.            As hereby amended, the Lease is ratified, confirmed and
approved in all respects.

 

EXECUTED under seal as of
the date first above written.

 

	
   

  	
  [SEAL]

  
	
   

  	
   

  
	
  LANDLORD:

  	
  TENANT:

  
	
  100 & 200 CLARENDON
  LLC

  	
  INVESTORS BANK & TRUST

  
	
   

  	
  COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
  /s/ Kevin J. Sheehan

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
  KEVIN J. SHEEHAN

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
  CEO

  	
   

  
	
   

  	
  Hereunto Duly Authorized

  	
   

  	
  Hereunto Duly Authorized

  
										

 

30

 

EXHIBIT
A

EXPANSION
AREA

 

 

 

EXHIBIT
B

 

BASE
BUILDING CONDITIONS

 

1.0           Building Shell & Service Core

 

Landlord shall deliver to
tenant the following items, which collectively comprise and are hereby defined
as the “Base Building.” All items shall be completed in accordance with
applicable Building Codes, laws, and regulations, including without limitation
the Americans with Disabilities Building Act (ADA).

 

(a)     The
building shell and exterior, including perimeter window frames, seals,
mullions, and glazing in good condition, with Building Standard window
coverings in place and in good condition;

 

(b)     The
core area, including necessary mechanical, electrical, sprinkler, plumbing,
life-safety, heating, ventilation, air conditioning and structural systems are
sufficiently connected for tenant’s secondary distribution system;

 

(c)     Building
Standard doors at stairwells, toilet rooms, and core service rooms, installed
with required hardware;

 

(d)     Public
stairwells and required paths of egress as required for the occupied Premises;

 

(e)     Finished
and secured electrical, mechanical, telephone, and janitorial rooms “service
rooms”) to the extent located on the floor and as indicated on the Base Building
plans;

 

(f)     Core
service electrical rooms include all required feeders, transformers, panels,
breakers and associated equipment as required to provide electrical service of
6.0 watts/SF of connected load consisting of 2 watts/SF for lighting (277 volt)
and (4.0) watts/SF convenience (120 volt) service; metering as required by
landlord shall be installed at landlord’s cost;

 

(g)     Core
service telephone rooms are secured and installed with plywood backboards,
interior lighting and electrical outlets;

 

(h)     Men’s
and women’s toilet rooms, including plumbing fixtures, hot and cold running
water, ceramic tile floors and wall surfaces, accessories and dividers, and
ceilings and lighting;

 

B-1

 

(i)     Passenger
and freight elevators, including finished interior cabs and lobbies complete
with finished doors, frames, hardware, magnetic hold-open devices, call
lanterns and buttons, fire department connections, and placards as required by
Code and consistent with Building Standards;

 

(j)     Ground
floor lobby with first class security;

 

(k)     Parking
facilities with updated lighting, painting, signage, equipment, and other
amenities;

 

(1)     Exterior
plazas and landscaping; 

 

(m)     Loading
dock; 

 

(n)     Exit
signage as required by Code;

 

(o)     Concrete
floors, smooth and level and adequate for the installation of Tenant’s
finishes;

 

(p)     Main
mechanical system, provided for tenant installed distribution system;

 

(q)     Primary
fire sprinkler system consisting of main piping and associated control valves,
mains, laterals, and uprights with sprinkler heads and secondary distribution
as required by Code;

 

(r)     A
primary fire/life safety annunciation system “backbone” sufficient for Tenant’s
secondary distribution as required by Code;

 

(s)     Access
to condenser water, for Tenant’s supplemental cooling systems, is available up
to a capacity of 10 tons per floor (which capacity tenant may elect to
allocated to a central location); 

 

(t)     Fire
extinguishers in all core fire extinguisher cabinets.

 

2.0           Hazardous Materials Criteria

 

Landlord agrees to make
available a copy of a third party Phase I report on the Building regarding
asbestos and other hazardous materials.

 

2.0           HVAC Design and Performance

 

The HVAC system shall be of
sufficient capacity to maintain an average inside

 

B-2

 

temperature of 75 degrees
during summer with outdoors temperature of 91 degrees F.D.B. and 73 degrees
F.W.B. and 72 degrees during winter with outside temperature of 9 degrees
F.D.B. and in accordance with an occupancy of 130 square feet of Rentable Area
per person (average per floor) and a demand load of 6 watts per square foot.
These temperatures are subject to the conditions and requirements of State and
Federal Energy Regulating bodies for non-residential buildings, including the
any state Energy Conservation Standards.

 

B-3

 

EXHIBIT
C

 

[/*/ CONFIDENTIAL TREATMENT REQUESTED]

 

[/*/ CONFIDENTIAL
TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN
FILED WITH THE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES
EXCHANGE ACT OF 1934, AS AMENDED.

 

C-1

 

[/*/ CONFIDENTIAL
TREATMENT REQUESTED]

[/*/ CONFIDENTIAL
TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN
FILED WITH THE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

C-2

 

EXHIBIT
D

 

FORM
OF SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT

AGREEMENT

 

 

	
   

  	
   

  	
   

  
	
   

  	
  (Lender)

  	
   

  

 

 

-and-

 

 

	
   

  	
   

  	
   

  
	
   

  	
  (Tenant)

  	
   

  

 

 

SUBORDINATION,
NON-DISTURBANCE

AND
ATTORNMENT AGREEMENT

 

	
  Dated:

  
	
   

  
	
  Location:

  
	
   

  
	
  Section:

  Block: Lot:

  County:

  
	
   

  
	
   

  
	
  PREPARED BY AND UPON

  RECORDATION RETURN TO:

  
	
   

  
	
  Messrs. Cadwalader,
  Wickersham & Taft LLP

  100 Maiden Lane

  New York, New York 10038

  Attention:

  
	
   

  
	
  File No.:

  Title No.

  

 

D-1

 

SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT

 

THIS SUBORDINATION, NON-DISTURBANCE
AND ATTORNMENT AGREEMENT (this “Agreement”) is made as of the       day
of                   ,
20     by and between [LENDER], having an address at
[LENDER’S ADDRESS] (“Lender”), and                                                             ,
having an address at                                                                                                (“Tenant”).

 

RECITALS:

 

A.            Lender has made a loan in the approximate amount of $          to
Landlord (defined below), which Loan is given pursuant to the terms and
conditions of that certain Loan Agreement dated             ,
20     , between Lender and Landlord (the “Loan
Agreement”).  The Loan is evidenced
by a certain Promissory Note dated                  ,
20      , given by Landlord to Lender (the “Note”)
and secured by a certain [Mortgage][Deed of Trust] and Security Agreement dated
                 ,
20    , given by Landlord to Lender (the “Mortgage”),
which encumbers the fee estate of Landlord in certain premises described in Exhibit
A attached hereto (the “Property”);

 

B.            Tenant occupies a portion of the Property under and
pursuant to the provisions of a certain lease dated                   ,
between
                        ,
as landlord (“Landlord”) and Tenant, as tenant (the “Lease”): and

 

C.            Tenant has agreed to subordinate the Lease to the
Mortgage and to the lien thereof and Lender has agreed to grant non-disturbance
to Tenant under the Lease on the terms and conditions here in after set forth.

 

AGREEMENT:

 

For good and valuable consideration,
Tenant and Lender agree as follows:

 

1.             Subordination.  Tenant agrees that the Lease
and all of the terms, covenants and provisions thereof and all rights, remedies
and options of Tenant thereunder are and shall at all times continue to be subject
and subordinate in all respects to the Mortgage and to the lien thereof and all
terms, covenants and conditions set forth in the Mortgage and the Loan
Agreement including without limitation all renewals, increases, modifications, spreaders,
consolidations, replacements and extensions thereof and to all sums secured thereby
with the same force and effect as if the Mortgage and Loan Agreement had been executed,
delivered and (in the case of the Mortgage) recorded prior to the execution and

delivery of the Lease.

 

2              Non-Disturbance.  Lender
agrees that if any action or proceeding is commenced by Lender for the
foreclosure of the Mortgage or the sale of the Property, Tenant shall not be
named as a party therein unless such joinder shall be required by law,
provided, however, such joinder shall not result in the termination of the
Lease or disturb the Tenant’s possession or use of the premises demised
thereunder, and the sale of the

 

1

 

Property in any such action
or proceeding and the exercise by Lender of any of its other rights under the
Note, the Mortgage and the Loan Agreement shall be made subject to all rights
of Tenant under the Lease, provided that at the time of the commencement of any
such action or proceeding or at the time of any such sale or exercise of any
such other rights (a) the term of the Lease shall have commenced pursuant to
the provisions thereof, (b) the Lease shall be in full force and effect and (c)
Tenant shall not be in default under any of the terms, covenants or conditions
of the Lease or of this Agreement on Tenant’s part to be observed or performed
beyond the expiration of any applicable notice or grace periods.

 

E.     Attornment. Lender and Tenant agree
that upon the conveyance of the Property by reason of the foreclosure of the
Mortgage or the acceptance of a deed or assignment in lieu of foreclosure or otherwise,
the Lease shall not be terminated or affected thereby (at the option of the
transferee of the Property (the “Transferee”) if the conditions set
forth in Section 2 above have not been met at the time of such transfer)
but shall continue in full force and effect as a direct lease between the
Transferee and Tenant upon all of the terms, covenants and conditions set forth
in the Lease and in that event, Tenant agrees to attorn to the Transferee and
the Transferee shall accept such attornment, provided, however, that the
Transferee shall not be (a) liable (i) for Landlord’s failure to perform any of
its obligations under the Lease which have accrued prior to the date on which
the Transferee shall become the owner of the Property, or (ii) for any act or
omission of Landlord, whether prior to or after such foreclosure or sale, (b)
required to make any repairs to the Property or to the premises demised under
the Lease required as a result of fire, or other casualty or by reason of
condemnation unless the Transferee shall be obligated under the Lease to make
such repairs, (c) subject to any offsets, defenses, abatements or counterclaims
which shall have accrued to Tenant against Landlord prior to the date upon
which the Transferee shall become the owner of the Property, (d) liable for the
return of rental security deposits, if any, paid by Tenant to Landlord in
accordance with the Lease unless such sums are actually received by the
Transferee, (e) bound by any payment of rents, additional rents or other sums
which Tenant may have paid more than one (1) month in advance to any prior
Landlord unless (i) such sums are actually received by the Transferee or (ii)
such prepayment shall have been expressly approved of by the Transferee, (f)
bound to make any payment to Tenant which was required under the Lease, or otherwise,
to be made prior to the time the Transferee succeeded to Landlord’s interest,
(g) bound by any agreement amending, modifying or terminating the Lease made
without the Lender’s prior written consent prior to the time the Transferee
succeeded to Landlord’s interest.

 

F.     Notice to Tenant. After notice is
given to Tenant by Lender that the Landlord is in default under the Note and
the Mortgage and that the rentals under the Lease should be paid to Lender
pursuant to the terms of the assignment of leases and rents executed and
delivered by Landlord to Lender in connection therewith, Tenant shall
thereafter pay to Lender or as directed by the Lender, all rentals and all
other monies due or to become due to Landlord under the Lease and Landlord
hereby expressly authorizes

 

2

 

Tenant to make such payments
to Lender and hereby releases and discharges Tenant from any liability to
Landlord on account of any such payments.

 

G.    Lender’s Consent. Tenant shall not,
without obtaining the prior written consent of Lender, (a) enter into any
agreement amending, modifying or terminating the Lease, (b) prepay any of the
rents, additional rents or other sums due under the Lease for more than one (1)
month in advance of the due dates thereof, (c) voluntarily surrender the
premises demised under the Lease or terminate the Lease without cause or
shorten the term thereof; and any such amendment, modification, termination,
prepayment, or voluntary surrender, without Lender’s prior consent, shall not
be binding upon Lender.

 

H.    Lender to Receive Notices. Tenant
shall provide Lender with copies of all written notices sent to Landlord
pursuant to the Lease simultaneously with the transmission of such notices to
the Landlord. Tenant shall notify Lender of any default by Landlord under the
Lease which would entitle Tenant to cancel the Lease or to an abatement of the
rents, additional rents or other sums payable thereunder, and agrees that,
notwithstanding any provisions of the Lease to the contrary, no notice of
cancellation thereof or of such an abatement shall be effective unless Lender
shall have received notice of default giving rise to such cancellation or
abatement and shall have failed within sixty (60) days after receipt of such
notice to cure such default, or if such default cannot be cured within sixty (60)
days, shall have failed within sixty (60) days after receipt of such notice to
commence and thereafter diligently pursue any action necessary to cure such
default.

 

I.      Notices. All notices or other written
communications hereunder shall be deemed to have been properly given (i) upon
delivery, if delivered in person or by facsimile transmission with receipt
acknowledged by the recipient thereof and confirmed by telephone by sender,
(ii) one (1) Business Day (hereinafter defined) after having been deposited for
overnight delivery with any reputable overnight courier service, or (iii) 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
registered or certified mail, postage prepaid, return receipt requested,
addressed as follows:

 

If to Tenant:

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attention:

  	
   

  	
   

  
	
   

  	
  Facsimile No.

  	
   

  	
   

  
					

 

If
to Lender: [Lender’s Notice]

 

3

 

With a copy to:    Cadwalader, Wickersham & Taft LLP

100 Maiden Lane

New York, New York 10038

Attention:

Facsimile No. (212) 504-6666

 

or
addressed as such party may from time to time designate by written notice to
the other parties. For purposes of this Section, the term “Business Day” shall
mean a day on which commercial banks are not authorized or required by law to
close in New York, New York.

Either party by notice to
the other may designate additional or different addresses for subsequent
notices or communications.

 

J.     Joint and Several Liability. If
Tenant consists of more than one person, the obligations and liabilities of
each such person hereunder shall be joint and several.  This Agreement shall be binding upon and
inure to the benefit of Lender and Tenant and their respective successors and
assigns.

 

K.    Definitions. The term “Lender” as
used herein shall include the successors and assigns of Lender and any person,
party or entity which shall become the owner of the Property by reason of a
foreclosure of the Mortgage or the acceptance of a deed or assignment in lieu
of foreclosure or otherwise. The term “Landlord” as used herein shall mean and
include the present landlord under the Lease and such landlord’s predecessors
and successors in interest under the Lease, but shall not mean or include Lender.
The term “Property” as used herein shall mean the Property, the improvements
now or hereafter located thereon and the estates therein encumbered by the
Mortgage.

 

L.     No Oral Modifications. This
Agreement may not be modified in any manner or terminated except by an
instrument in writing executed by the parties hereto.

 

M.   Governing Law. This Agreement shall be
deemed to be a contract entered into pursuant to the laws of the State where
the Property is located and shall in all respects be governed, construed,
applied and enforced in accordance with the laws of the State where the
Property is located.

 

N.    Inapplicable Provisions. If any term,
covenant or condition of this Agreement is held to be invalid, illegal or
unenforceable in any respect, this Agreement shall be construed without such
provision.

 

O.    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 may be executed in several
counterparts, each of which counterparts shall be deemed an original instrument
and all of which together shall constitute a single Agreement. The failure of
any party hereto to execute this Agreement, or any counterpart hereof, shall
not relieve the other signatories from their obligations hereunder.

 

4

 

P.     Number and Gender. Whenever the
context may require, any pronouns used herein shall include the corresponding
masculine, feminine or neuter forms, and the singular form of nouns and
pronouns shall include the plural and vice versa.

 

Q.    Transfer of Loan. Lender may sell,
transfer and deliver the Note and assign the Mortgage, this Agreement and the
other documents executed in connection therewith to one or more investors in
the secondary mortgage market (“Investors”). In connection with such
sale, Lender may retain or assign responsibility for servicing the loan,
including the Note, the Mortgage, this Agreement and the other documents
executed in connection therewith, or may delegate some or all of such
responsibility and/or obligations to a servicer including, but not limited to,
any subservicer or master servicer, on behalf of the Investors. All references
to Lender herein shall refer to and include any such servicer to the extent
applicable.

 

R.    Further Acts. Tenant will, at the
sole cost of Lender, do, execute, acknowledge and deliver all and every such
further acts and assurances as Lender shall, from time to time, require, for
the better assuring and confirming unto Lender the property and rights hereby
intended now or hereafter so to be, or for carrying out the intention or
facilitating the performance of the terms of this Agreement or for filing,
registering or recording this Agreement, or for complying with all applicable
laws.

 

S.     Limitations on Lender’s Liability.
Tenant acknowledges that Lender is obligated only to Landlord to make the Loan
upon the terms and subject to the conditions set forth in the Loan Agreement.
In no event shall Lender or any purchaser of the Property at foreclosure sale
or any grantee of the Property named in a deed-in-lieu of foreclosure, nor any
heir, legal representative, successor, or assignee of Lender or any such
purchaser or grantee (collectively the Lender, such purchaser, grantee, heir,
legal representative, successor or assignee, the “Subsequent Landlord”)
have any personal liability for the obligations of Landlord under the Lease and
should the Subsequent Landlord succeed to the interests of the Landlord under
the Lease, Tenant shall look only to the estate and property of any such
Subsequent Landlord in the Property for the satisfaction of Tenant’s remedies
for the collection of a judgment (or other judicial process) requiring the
payment of money in the event of any default by any Subsequent Landlord as
landlord under the Lease, and no other property or assets of any Subsequent
Landlord shall be subject to levy, execution or other enforcement procedure for
the satisfaction of Tenant’s remedies under or with respect to the Lease;
provided, however, that the Tenant may exercise any other right or remedy
provided thereby or by law in the event of any failure by Subsequent Landlord
to perform any such material obligation.

 

5

 

IN WITNESS WHEREOF, Lender
and Tenant have duly executed this Agreement as of the date first above
written.

 

	
   

  	
  LENDER:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [Lender]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TENANT:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  a

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
  The undersigned accepts
  and agrees to

  	
   

  
	
  the provisions of Section
  4 hereof:

  	
   

  
	
   

  	
   

  
	
  LANDLORD:

  	
   

  
	
   

  	
  , a

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
											

 

1

 

ACKNOWLEDGMENTS

 

[INSERT
STATE SPECIFIC ACKNOWLEDGMENT]

 

1

 

 

EXHIBIT A

 

LEGAL DESCRIPTION

 

A-1Exhibit 10.2

 

INVESTORS FINANCIAL SERVICES CORP.

 

2005 EQUITY INCENTIVE PLAN

 

1.             Purpose

 

This Plan is intended to encourage ownership of Stock by employees,
consultants and directors of the Company and its Affiliates and to provide
additional incentive for them to promote the success of the Company’s business
through the grant of Awards of or pertaining to shares of the Company’s Stock.
The Plan is intended to be an incentive stock option plan within the meaning of
Section 422 of the Code, but not all Awards are required to be Incentive
Options.

 

2.             Definitions

 

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

 

2.1.  Accelerate, Accelerated,
and Acceleration, means:
(a) when used with respect to an Option or Stock Appreciation Right, that
as of the time of reference the Option or Stock Appreciation Right will become
exercisable with respect to some or all of the shares of Stock for which it was
not then otherwise exercisable by its terms; (b) when used with respect to
Restricted Stock or Restricted Stock Units, that the Risk of Forfeiture
otherwise applicable to the Stock or Units shall expire with respect to some or
all of the shares of Restricted Stock or Units then still otherwise subject to
the Risk of Forfeiture; and (c) when used with respect to Performance
Units, that the applicable Performance Goals shall be deemed to have been met
as to some or all of the Units.

 

2.2.  Acquisition means a merger or consolidation of the Company
into another person (i.e., which
merger or consolidation the Company does not survive) or the sale, transfer, or
other disposition of all or substantially all of the Company’s assets to one or
more other persons in a single transaction or series of related transactions.

 

2.3.  Affiliate means any corporation, partnership, limited
liability company, business trust, or other entity controlling, controlled by
or under common control with the Company.

 

2.4.  Award means any grant or sale pursuant to the Plan of
Options, Stock Appreciation Rights, Performance Units, Restricted Stock,
Restricted Stock Units, or Stock Grants.

 

2.5.  Award Agreement means an agreement between the Company and
the recipient of an Award, setting forth the terms and conditions of the Award.

 

2.6.  Board means the Company’s Board of Directors.

 

2.7.  Change in Control means the
occurrence of any of the following after the date of the approval of the Plan
by the Board:

 

(a)       an
Acquisition, unless securities possessing more than 50% of the total combined
voting power of the survivor’s or acquiror’s outstanding securities (or the
securities of any parent thereof) are held by a person or persons who held
securities possessing more than 50% of the total combined voting power of the
Company’s outstanding securities immediately prior to that transaction, or

 

(b)       any
person or group of persons (within the meaning of Section 13(d)(3) of the
Securities Exchange Act of 1934, as amended and in effect from time to time)
directly or indirectly acquires, including but not limited to by means of a
merger or consolidation, beneficial ownership (determined pursuant to
Securities and Exchange Commission Rule 13d-3 promulgated under the

 

1

 

said Exchange Act) of securities possessing
more than 20% of the total combined voting power of the Company’s outstanding
securities pursuant to a tender or exchange offer made directly to the Company’s
stockholders that the Board does not recommend such stockholders accept, other
than (i) the Company or an Affiliate, (ii) an employee benefit plan
of the Company or any of its Affiliates, (iii) a trustee or other
fiduciary holding securities under an employee benefit plan of the Company or
any of its Affiliates, or (iv) an underwriter temporarily holding
securities pursuant to an offering of such securities, or

 

(c)       over
a period of 36 consecutive months or less, there is a change in the composition
of the Board such that a majority of the Board members (rounded up to the next
whole number, if a fraction) ceases, by reason of one or more proxy contests
for the election of Board members, to be composed of individuals who either
(i) have been Board members continuously since the beginning of that
period, or (ii) have been elected or nominated for election as Board members
during such period by at least a majority of the Board members described in the
preceding clause (i) who were still in office at the time that election or
nomination was approved by the Board; or

 

(d)       a
majority of the Board votes in favor of a decision that a Change in Control has
occurred.

 

2.8.  Code means the Internal Revenue Code of 1986, as amended
from time to time, or any successor statute thereto, and any regulations issued
from time to time thereunder.

 

2.9.  Committee means the Compensation Committee of the Board,
which in general is responsible for the administration of the Plan, as provided
in Section 5 of the Plan. For any period during which no such committee is
in existence “Committee” shall mean the Board and all authority and
responsibility assigned to the Committee under the Plan shall be exercised, if
at all, by the Board.

 

2.10.  Company means Investors Financial Services Corp., a
corporation organized under the laws of the State of Delaware.

 

2.11.  Covered Employee means an
employee who is a “covered employee” within the meaning of Section 162(m)
of the Code.

 

2.12.  Grant Date means the date as of which an Option is granted,
as determined under Section 7.1(a).

 

2.13.  Incentive Option means an Option which by its terms is to be
treated as an “incentive stock option” within the meaning of Section 422
of the Code.

 

2.14.  Market Value means the value of a share of Stock on a
particular date determined by such methods or procedures as may be established
by the Committee. Unless otherwise determined by the Committee, the Market
Value of Stock as of any date is the closing price for the Stock as reported on
the NASDAQ Stock market (or on any national securities exchange on which the
Stock is then listed) for that date or, if no closing price is reported for
that date, the closing price on the next preceding date for which a closing
price was reported. For purposes of Awards effective as of the effective date
of the Company’s initial public offering, Market Value of Stock shall be the
price at which the Company’s Stock is offered to the public in its initial
public offering.

 

2.15.  Non-Employee Director means a director that is not an
employee of the Company.

 

2.16.  Nonstatutory Option means any Option that is not an
Incentive Option.

 

2.17.  Option means an option to purchase shares of Stock.

 

2.18.  Optionee means a Participant to whom an Option shall have
been granted under the Plan.

 

2.19.  Participant means any holder of an outstanding Award under
the Plan.

 

2

 

2.20.  Performance Criteria means the criteria that the Committee
selects for purposes of establishing the Performance Goal or Performance Goals
for a Participant for a Performance Period. The Performance Criteria used to
establish Performance Goals are limited to: pre- or after-tax net earnings,
sales growth, operating earnings, operating cash flow, return on net assets,
return on stockholders’ equity, return on assets, return on capital, Stock
price growth, stockholder returns, gross or net profit margin, earnings per
share, price per share of Stock, and market share, any of which may be measured
either in absolute terms or as compared to any incremental increase or as
compared to results of a peer group. The Committee will, but within the time prescribed
by Section 162(m) of the Code in the case of Qualified Performance-Based
Awards, objectively define the manner of calculating the Performance Criteria
it selects to use for such Performance Period for such Participant.

 

2.21.  Performance Goals means, for a Performance Period, the
written goals established by the Committee for the Performance Period based
upon the Performance Criteria. Depending on the Performance Criteria used to
establish such Performance Goals, the Performance Goals may be expressed in
terms of overall Company performance or the performance of a division, business
unit, subsidiary, or an individual.

 

2.22.  Performance Period means the one or more periods of time,
which may be of varying and overlapping durations, selected by the Committee,
over which the attainment of one or more Performance Goals will be measured for
purposes of determining a Participant’s right to, and the payment of, a
Performance Unit.

 

2.23.  Performance Unit means a right granted to a Participant
under Section 7.5, to receive cash, Stock or other Awards, the payment of
which is contingent on achieving Performance Goals established by the
Committee.

 

2.24.  Plan means this 2005 Equity Incentive Plan of the Company,
as amended from time to time, and including any attachments or addenda hereto.

 

2.25.  Qualified Performance-Based Awards means Awards intended to
qualify as “performance-based compensation” under Section 162(m) of the
Code.

 

2.26.  Restricted Stock means a grant or sale of shares of Stock to
a Participant subject to a Risk of Forfeiture.

 

2.27.  Restriction Period means the period of time, established by
the Committee in connection with an Award of Restricted Stock, during which the
shares of Restricted Stock are subject to a Risk of Forfeiture described in the
applicable Award Agreement.

 

2.28.  Risk of Forfeiture means a limitation on the right of the
Participant to retain Restricted Stock or Restricted Stock Units, including a
right in the Company to reacquire shares of Restricted Stock at less than their
then Market Value, arising because of the occurrence or non-occurrence of
specified events or conditions.

 

2.29.  Restricted Stock Units means rights to receive shares of
Stock at the close of a Restriction Period, subject to a Risk of Forfeiture.

 

2.30.  Stock means common stock, par value $.01 per share, of the
Company, and such other securities as may be substituted for Stock pursuant to
Section 8.

 

2.31.  Stock Appreciation Right means a right to receive any excess
in the Market Value of shares of Stock (except as otherwise provided in
Section 7.2(c)) over a specified exercise price.

 

2.32.  Stock Grant means the grant of shares of Stock not subject
to restrictions or other forfeiture conditions.

 

3

 

2.33  Ten Percent Owner means a person who owns, or is deemed
within the meaning of Section 422(b)(6) of the Code to own, stock
possessing more than 10% of the total combined voting power of all classes of
stock of the Company (or any parent or subsidiary corporations of the Company,
as defined in Sections 424(e) and (f), respectively, of the Code). Whether a
person is a Ten Percent Owner shall be determined with respect to an Option
based on the facts existing immediately prior to the Grant Date of the Option.

 

3.             Term of the Plan

 

Unless the Plan shall have been earlier terminated by the Board, Awards
may be granted under this Plan at any time in the period commencing on the date
of approval of the Plan by the Board and ending immediately prior to the tenth
anniversary of the earlier of the adoption of the Plan by the Board or approval
of the Plan by the Company’s stockholders. Awards granted pursuant to the Plan
within that period shall not expire solely by reason of the termination of the
Plan. Awards of Incentive Options granted prior to stockholder approval of the
Plan are expressly conditioned upon such approval, but in the event of the
failure of the stockholders to approve the Plan shall thereafter and for all
purposes be deemed to constitute Nonstatutory Options.

 

4.             Stock Subject to the Plan

 

At no time shall the number of shares of Stock issued pursuant to or
subject to outstanding Awards granted under the Plan exceed the excess of
(i) 18,080,000 shares of stock over (ii) the number of shares of
Stock issued pursuant to or subject to outstanding awards granted under the
Company’s Amended and Restated 1995 Stock Plan and 1995 Non-Employee Director
Stock Option Plan; subject, however,
to the provisions of Section 8 of the Plan. At no time shall the number of
shares of Stock issued pursuant to or subject to the outstanding Incentive
Options granted under the Plan exceed 5,489,245 shares of Stock; subject, however, to the provisions of
Section 8 of the Plan. For purposes of applying the foregoing limitation,
(a) if any Option or Stock Appreciation Right expires, terminates, or is
cancelled for any reason without having been exercised in full, or if any other
Award is forfeited by the recipient, the shares not purchased by the Optionee
or which are forfeited by the recipient shall again be available for Awards to
be granted under the Plan and (b) if any Option is exercised by delivering
previously owned shares in payment of the exercise price therefore, only the
net number of shares, that is, the number of shares issued minus the number
received by the Company in payment of the exercise price, shall be considered
to have been issued pursuant to an Award granted under the Plan. In addition,
settlement of any Award shall not count against the foregoing limitations
except to the extent settled in the form of Stock. Shares of Stock issued
pursuant to the Plan may be either authorized but unissued shares or shares
held by the Company in its treasury.

 

5.             Administration

 

The Plan shall be administered by the Committee; provided, however, that at any time and on
any one or more occasions the Board may itself exercise any of the powers and
responsibilities assigned the Committee under the Plan and when so acting shall
have the benefit of all of the provisions of the Plan pertaining to the
Committee’s exercise of its authorities hereunder. Subject to the provisions of
the Plan, the Committee shall have complete authority, in its discretion, to
make or to select the manner of making all determinations with respect to each
Award to be granted by the Company under the Plan including the employee,
consultant or director to receive the Award and the form of Award. In making
such determinations, the Committee may take into account the nature of the
services rendered by the respective employees, consultants, and directors,
their present and potential contributions to the success of the Company and its
Affiliates, and such other factors as the Committee in its discretion shall
deem relevant. Subject to the provisions of the Plan, the Committee shall also
have complete authority to interpret the Plan, to prescribe, amend and rescind
rules and regulations relating to it, to determine the 

 

4

 

terms and provisions of the respective Award Agreements (which need not
be identical), and to make all other determinations necessary or advisable for
the administration of the Plan. The Committee’s determinations made in good
faith on matters referred to in the Plan shall be final, binding and conclusive
on all persons having or claiming any interest under the Plan or an Award made
pursuant hereto.

 

6.             Authorization of Grants

 

6.1.  Eligibility. The Committee may grant from time to time and
at any time prior to the termination of the Plan one or more Awards, either
alone or in combination with any other Awards, to any employee of or consultant
to one or more of the Company and its Affiliates or to non-employee members of
the Board or of any board of directors (or similar governing authority) of any
Affiliate. However, only employees of the Company, and of any parent or
subsidiary corporations of the Company, as defined in Sections 424(e) and (f),
respectively, of the Code, shall be eligible for the grant of an Incentive
Option. Further, in no event shall the number of shares of Stock covered by
Options or other Awards granted to any one person in any one calendar year
exceed 25% of the aggregate number of shares of Stock subject to the Plan.

 

6.2.  General Terms of Awards. Each grant of an Award shall be
subject to all applicable terms and conditions of the Plan (including but not
limited to any specific terms and conditions applicable to that type of Award
set out in the following Section), and such other terms and conditions, not
inconsistent with the terms of the Plan, as the Committee may prescribe. No
prospective Participant shall have any rights with respect to an Award, unless
and until such Participant has executed an agreement evidencing the Award,
delivered a fully executed copy thereof to the Company, and otherwise complied
with the applicable terms and conditions of such Award.

 

6.3.  Effect of Termination of Employment, Etc. Unless the
Committee shall provide otherwise with respect to any Award, if the Participant’s
employment or other association with the Company and its Affiliates ends for
any reason, including because of the Participant’s employer ceasing to be an
Affiliate, (a) any outstanding Option or SAR of the Participant shall
cease to be exercisable in any respect not later than 90 days following
that event and, for the period it remains exercisable following that event,
shall be exercisable only to the extent exercisable at the date of that event,
and (b) any other outstanding Award of the Participant shall be forfeited
or otherwise subject to return to or repurchase by the Company on the terms
specified in the applicable Award Agreement. Military or sick leave or other
bona fide leave shall not be deemed a termination of employment or other
association, provided that it
does not exceed the longer of ninety (90) days or the period during which
the absent Participant’s reemployment rights, if any, are guaranteed by statute
or by contract.

 

6.4.  Non-Transferability of Awards. Except as otherwise provided
in this Section 6.4, Awards shall not be transferable, and no Award or
interest therein may be sold, transferred, pledged, assigned, or otherwise
alienated or hypothecated, other than by will or by the laws of descent and
distribution. All of a Participant’s rights in any Award may be exercised
during the life of the Participant only by the Participant or the Participant’s
legal representative. However, the Committee may, at or after the grant of an
Award of a Nonstatutory Option, or shares of Restricted Stock, provide that
such Award may be transferred by the recipient to a family member; provided, however, that any such transfer
is without payment of any consideration whatsoever and that no transfer shall
be valid unless first approved by the Committee, acting in its sole discretion.
For this purpose, “family member” means any child, stepchild, grandchild,
parent, stepparent, spouse, former spouse, sibling, niece, nephew,
mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or
sister-in-law, including adoptive relationships, any person sharing the
employee’s household (other than a tenant or employee), a trust in which the
foregoing persons have more than fifty (50) percent of the beneficial
interests, a foundation in which the foregoing persons (or the Participant)
control the management of assets, and 

 

5

 

any other entity in which these persons (or the Participant) own more
than fifty (50) percent of the voting interests.

 

7.             Specific Terms of Awards

 

7.1.  Options.

 

(a)       Date
of Grant. The granting of an Option shall take place at the time specified
in the Award Agreement. Only if expressly so provided in the applicable Award
Agreement shall the Grant Date be the date on which the Award Agreement shall
have been duly executed and delivered by the Company and the Optionee.

 

(b)       Exercise
Price. The price at which shares of Stock may be acquired under each
Incentive Option shall be not less than 100% of the Market Value of Stock on
the Grant Date, or not less than 110% of the Market Value of Stock on the Grant
Date if the Optionee is a Ten Percent Owner. The price at which shares may be
acquired under each Nonstatutory Option shall not be so limited solely by
reason of this Section.

 

(c)       Option
Period. No Incentive Option may be exercised on or after the tenth
anniversary of the Grant Date, or on or after the fifth anniversary of the
Grant Date if the Optionee is a Ten Percent Owner. The Option period under each
Nonstatutory Option shall not be so limited solely by reason of this Section.

 

(d)       Exercisability.
An Option may be immediately exercisable or become exercisable in such
installments, cumulative or non-cumulative, as the Committee may determine. In
the case of an Option not otherwise immediately exercisable in full, the
Committee may Accelerate such Option in whole or in part at any time; provided, however, that in the case of an
Incentive Option, any such Acceleration of the Option would not cause the
Option to fail to comply with the provisions of Section 422 of the Code or
the Optionee consents to the Acceleration.

 

(e)       Method
of Exercise. An Option may be exercised by the Optionee giving written
notice, in the manner provided in Section 16, specifying the number of
shares with respect to which the Option is then being exercised. Payment of the
purchase price may be made by one or more of the following methods to the
extent provided in the Award Agreement:

 

1.       In cash, by certified or
bank check or other instrument acceptable to the Administrator;

 

2.       Through the delivery (or
attestation to the ownership) of shares of Stock that have been purchased by
the Optionee on the open market or that have been beneficially owned by the
Optionee for at least six months and are not then subject to restrictions under
any Company plan. Such surrendered shares shall be valued at Market Value on
the exercise date; or

 

3.       By the Optionee delivering
to the Company a properly executed exercise notice together with irrevocable
instructions to a broker to promptly deliver to the Company cash or a check
payable and acceptable to the Company for the purchase price; provided that in
the event the Optionee chooses to pay the purchase price as so provided, the
Optionee and the broker shall comply with such procedures and enter into such
agreements of indemnity and other agreements as the Committee shall prescribe
as a condition of such payment procedure.

 

Within thirty (30) days thereafter but subject to the remaining
provisions of the Plan, the Company shall deliver or cause to be delivered to
the Optionee or his agent a certificate or certificates for the number of
shares then being purchased. Such shares shall be fully paid and nonassessable.
In the event an Optionee chooses to pay the purchase price by previously-owned
shares of Stock through the

 

6

 

attestation method, the number of shares of Stock transferred to the
Optionee upon the exercise of the Stock Option shall be net of the number of
shares attested to.

 

(f)        Limit
on Incentive Option Characterization. An Incentive Option shall be
considered to be an Incentive Option only to the extent that the number of
shares of Stock for which the Option first becomes exercisable in a calendar
year do not have an aggregate Market Value (as of the date of the grant of the
Option) in excess of the “current limit”. The current limit for any Optionee
for any calendar year shall be $100,000 minus
the aggregate Market Value at the date of grant of the number of shares of
Stock available for purchase for the first time in the same year under each
other Incentive Option previously granted to the Optionee under the Plan, and
under each other incentive stock option previously granted to the Optionee
under any other incentive stock option plan of the Company and its Affiliates,
after December 31, 1986. Any shares of Stock which would cause the
foregoing limit to be violated shall be deemed to have been granted under a
separate Nonstatutory Option, otherwise identical in its terms to those of the
Incentive Option.

 

(g)       Notification
of Disposition. Each person exercising any Incentive Option granted under
the Plan shall be deemed to have covenanted with the Company to report to the
Company any disposition of such shares prior to the expiration of the holding
periods specified by Section 422(a)(1) of the Code and, if and to the
extent that the realization of income in such a disposition imposes upon the
Company federal, state, local or other withholding tax requirements, or any
such withholding is required to secure for the Company an otherwise available
tax deduction, to remit to the Company an amount in cash sufficient to satisfy
those requirements.

 

7.2.  Stock Appreciation Rights.

 

(a)       Tandem
or Stand-Alone. Stock Appreciation Rights may be granted in tandem with an
Option (at or, in the case of a Nonstatutory Option, after, the award of the
Option), or alone and unrelated to an Option. Stock Appreciation Rights in
tandem with an Option shall terminate to the extent that the related Option is
exercised, and the related Option shall terminate to the extent that the tandem
Stock Appreciation Rights are exercised.

 

(b)       Exercise
Price. Stock Appreciation Rights shall have an exercise price of not less
than fifty percent (50%) of the Market Value of the Stock on the date of award,
or in the case of Stock Appreciation Rights in tandem with Options, the
exercise price of the related Option.

 

(c)       Other
Terms. Except as the Committee may deem inappropriate or inapplicable in
the circumstances, Stock Appreciation Rights shall be subject to terms and
conditions substantially similar to those applicable to a Nonstatutory Option.
In addition, an SAR related to an Option which can only be exercised during
limited periods following a Change in Control may entitle the Participant to receive
an amount based upon the highest price paid or offered for Stock in any
transaction relating to the Change in Control or paid during the thirty
(30) day period immediately preceding the occurrence of the change in
control in any transaction reported in the stock market in which the Stock is
normally traded.

 

7.3.  Restricted Stock.

 

(a)       Purchase
Price. Shares of Restricted Stock shall be issued under the Plan for such
consideration, in cash, other property or services, or any combination thereof,
as is determined by the Committee.

 

(b)       Issuance
of Certificates. Each Participant receiving a Restricted Stock Award,
subject to subsection (c) below, shall be issued a stock certificate in
respect of such shares of Restricted Stock. Such certificate shall be
registered in the name of such Participant, and, if applicable, shall

 

7

 

bear an appropriate legend referring to the terms, conditions, and
restrictions applicable to such Award substantially in the following form:

 

The transferability of this certificate and
the shares represented by this certificate are subject to the terms and
conditions of Investors Financial Services Corp. 2005 Equity Incentive Plan and
an Award Agreement entered into by the registered owner and Investors Financial
Services Corp. Copies of such Plan and Agreement are on file in the offices of
Investors Financial Services Corp.

 

(c)       Escrow
of Shares. The Committee may require that the stock certificates evidencing
shares of Restricted Stock be held in custody by a designated escrow agent
(which may but need not be the Company) until the restrictions thereon shall
have lapsed, and that the Participant deliver a stock power, endorsed in blank,
relating to the Stock covered by such Award.

 

(d)       Restrictions
and Restriction Period. During the Restriction Period applicable to shares
of Restricted Stock, such shares shall be subject to limitations on
transferability and a Risk of Forfeiture arising on the basis of such
conditions related to the performance of services, Company or Affiliate
performance or otherwise as the Committee may determine and provide for in the
applicable Award Agreement. Any such Risk of Forfeiture may be waived or
terminated, or the Restriction Period shortened, at any time by the Committee
on such basis as it deems appropriate.

 

(e)       Rights
Pending Lapse of Risk of Forfeiture or Forfeiture of Award. Except as
otherwise provided in the Plan or the applicable Award Agreement, at all times
prior to lapse of any Risk of Forfeiture applicable to, or forfeiture of, an
Award of Restricted Stock, the Participant shall have all of the rights of a
stockholder of the Company, including the right to vote, and the right to
receive any dividends with respect to, the shares of Restricted Stock. The
Committee, as determined at the time of Award, may permit or require the
payment of cash dividends to be deferred and, if the Committee so determines,
reinvested in additional Restricted Stock to the extent shares are available
under Section 4.

 

(f)        Lapse
of Restrictions. If and when the Restriction Period expires without a prior
forfeiture of the Restricted Stock, the certificates for such shares shall be
delivered to the Participant promptly if not theretofore so delivered.

 

7.4.  Restricted Stock Units.

 

(a)       Character.
Each Restricted Stock Unit shall entitle the recipient to a share of Stock at a
close of such Restriction Period as the Committee may establish and subject to
a Risk of Forfeiture arising on the basis of such conditions relating to the
performance of services, Company or Affiliate performance or otherwise as the
Committee may determine and provide for in the applicable Award Agreement. Any
such Risk of Forfeiture may be waived or terminated, or the Restriction Period
shortened, at any time by the Committee on such basis as it deems appropriate.

 

(b)       Form
and Timing of Payment. Payment of earned Restricted Stock Units shall be
made in a single lump sum following the close of the applicable Restriction
Period. At the discretion of the Committee, Participants may be entitled to
receive payments equivalent to any dividends declared with respect to Stock
referenced in grants of Restricted Stock Units but only following the close of
the applicable Restriction Period and then only if the underlying Stock shall
have been earned. Unless the Committee shall provide otherwise, any such
dividend equivalents shall be paid, if at all, without interest or other
earnings.

 

7.5.  Performance Units.

 

(a)       Character.
Each Performance Unit shall entitle the recipient to the value of a specified
number of shares of Stock, over the initial value for such number of shares, if
any, established by the Committee at the time of grant, at the close of a
specified Performance Period to the extent specified Performance Goals shall
have been achieved.

 

8

 

(b)       Earning
of Performance Units. The Committee shall set Performance Goals in its
discretion which, depending on the extent to which they are met within the
applicable Performance Period, will determine the number and value of
Performance Units that will be paid out to the Participant. After the
applicable Performance Period has ended, the holder of Performance Units shall
be entitled to receive payout on the number and value of Performance Units
earned by the Participant over the Performance Period, to be determined as a
function of the extent to which the corresponding Performance Goals have been
achieved.

 

(c)       Form
and Timing of Payment. Payment of earned Performance Units shall be made in
a single lump sum following the close of the applicable Performance Period. At
the discretion of the Committee, Participants may be entitled to receive any
dividends declared with respect to Stock which have been earned in connection with
grants of Performance Units which have been earned, but not yet distributed to
Participants. The Committee may permit or, if it so provides at grant require,
a Participant to defer such Participant’s receipt of the payment of cash or the
delivery of Stock that would otherwise be due to such Participant by virtue of
the satisfaction of any requirements or goals with respect to Performance
Units. If any such deferral election is required or permitted, the Committee
shall establish rules and procedures for such payment deferrals.

 

7.6.  Stock Grants. Stock Grants shall be awarded solely in
recognition of significant contributions to the success of the Company or its
Affiliates, in lieu of compensation otherwise already due and in such other
limited circumstances as the Committee deems appropriate. Stock Grants shall be
made without forfeiture conditions of any kind.

 

7.7.  Qualified Performance-Based Awards.

 

(a)       Purpose.
The purpose of this Section 7.7 is to provide the Committee the ability to
qualify Awards as “performance-based compensation” under Section 162(m) of
the Code. If the Committee, in its discretion, decides to grant an Award as a
Qualified Performance-Based Award, the provisions of this Section 7.7 will
control over any contrary provision contained in the Plan. In the course of
granting any Award, the Committee may specifically designate the Award as
intended to qualify as a Qualified Performance-Based Award. However, no Award
shall be considered to have failed to qualify as a Qualified Performance-Based
Award solely because the Award is not expressly designated as a Qualified
Performance-Based Award, if the Award otherwise satisfies the provisions of
this Section 7.7 and the requirements of Section 162(m) of the Code
and the regulations thereunder applicable to “performance-based compensation.”

 

(b)       Authority.
All grants of Awards intended to qualify as Qualified Performance-Based Awards
and determination of terms applicable thereto shall be made by the Committee
or, if not all of the members thereof qualify as “outside directors” within the
meaning of applicable IRS regulations under Section 162 of the Code, a
subcommittee of the Committee consisting of such of the members of the
Committee as do so qualify. Any action by such a subcommittee shall be
considered the action of the Committee for purposes of the Plan.

 

(b)       Applicability.
This Section 7.7 will apply only to those Covered Employees, or to those
persons who the Committee determines are reasonably likely to become Covered
Employees in the period covered by an Award, selected by the Committee to
receive Qualified Performance-Based Awards. The Committee may, in its
discretion, grant Awards to Covered Employees that do not satisfy the
requirements of this Section 7.7.

 

(c)       Discretion
of Committee with Respect to Qualified Performance-Based Awards. Options
may be granted as Qualified Performance-Based Awards in accordance with
Section 7.1, except that the exercise price of any Option intended to
qualify as a Qualified Performance-Based Award shall in no event be less that
the Market Value of the Stock on the date of grant. With regard to other Awards
intended to qualify as Qualified Performance-Based Awards, such as Restricted
Stock, 

 

9

 

Restricted Stock Units, or Performance Units, the Committee will have
full discretion to select the length of any applicable Restriction Period or
Performance Period, the kind and/or level of the applicable Performance Goal,
and whether the Performance Goal is to apply to the Company, a Subsidiary or
any division or business unit or to the individual. Any Performance Goal or
Goals applicable to Qualified Performance-Based Awards shall be objective,
shall be established not later than ninety (90) days after the beginning
of any applicable Performance Period (or at such other date as may be required
or permitted for “performance-based compensation” under Section 162(m) of
the Code) and shall otherwise meet the requirements of Section 162(m) of
the Code, including the requirement that the outcome of the Performance Goal or
Goals be substantially uncertain (as defined in the regulations under
Section 162(m) of the Code) at the time established.

 

(d)       Payment
of Qualified Performance-Based Awards. A Participant will be eligible to
receive payment under a Qualified Performance-Based Award which is subject to
achievement of a Performance Goal or Goals only if the applicable Performance
Goal or Goals period are achieved within the applicable Performance Period, as
determined by the Committee. In determining the actual size of an individual
Qualified Performance-Based Award, the Committee may reduce or eliminate the
amount of the Qualified Performance-Based Award earned for the Performance
Period, if in its sole and absolute discretion, such reduction or elimination
is appropriate.

 

(e)       Maximum
Award Payable. The maximum Qualified Performance-Based Award payment to any
one Participant under the Plan for a Performance Period is 5,489,245 shares of
Stock (subject to the provisions of Section 8 of the Plan) or, if the
Qualified Performance-Based Award is paid in cash, that number of shares
multiplied by the Market Value of the Stock as of the date the Qualified
Performance-Based Award is granted.

 

(f)        Limitation
on Adjustments for Certain Events. No adjustment of any Qualified
Performance-Based Award pursuant to Section 8 shall be made except on such
basis, if any, as will not cause such Award to provide other than “performance-based
compensation” within the meaning of Section 162(m) of the Code.

 

7.8.  Awards to Participants Outside the United States. The
Committee may modify the terms of any Award under the Plan granted to a
Participant who is, at the time of grant or during the term of the Award,
resident or primarily employed outside of the United States in any manner
deemed by the Committee to be necessary or appropriate in order that the Award
shall conform to laws, regulations, and customs of the country in which the
Participant is then resident or primarily employed, or so that the value and
other benefits of the Award to the Participant, as affected by foreign tax laws
and other restrictions applicable as a result of the Participant’s residence or
employment abroad, shall be comparable to the value of such an Award to a
Participant who is resident or primarily employed in the United States. The
Committee may establish supplements to, or amendments, restatements, or
alternative versions of the Plan for the purpose of granting and administrating
any such modified Award. No such modification, supplement, amendment,
restatement or alternative version may increase the share limit of
Section 4.

 

8.             Adjustment Provisions

 

8.1.  Adjustment for Corporate Actions. All of the share numbers
set forth in the Plan reflect the capital structure of the Company as of
February 18, 2005. Subject to Section 8.2, if subsequent to that date
the outstanding shares of Stock (or any other securities covered by the Plan by
reason of the prior application of this Section) are increased, decreased, or
exchanged for a different number or kind of shares or other securities, or if
additional shares or new or different shares or other securities are
distributed with respect to shares of Stock, through merger, consolidation,
sale of all or substantially all the property of the Company, reorganization,
recapitalization, reclassification, stock dividend, stock

 

10

 

split, reverse stock split, or other similar distribution with respect
to such shares of Stock, an appropriate and proportionate adjustment will be
made in (i) the maximum numbers and kinds of shares provided in
Section 4, (ii) the numbers and kinds of shares or other securities
subject to the then outstanding Awards, (iii) the exercise price for each
share or other unit of any other securities subject to then outstanding Options
and Stock Appreciation Rights (without change in the aggregate purchase price
as to which such Options or Rights remain exercisable), and (iv) the
repurchase price of each share of Restricted Stock then subject to a Risk of
Forfeiture in the form of a Company repurchase right.

 

8.2.  Change in Control. The Committee may, in the Award
Agreement, provide for the effect of a Change in Control on an Award. Such
provisions may include but are not limited to any one or more of the following
with respect to any or all Awards: (i) the specific consequences of a
Change in Control on the Awards; (ii) the acceleration or extension of
time periods for purposes of exercising, vesting in, or realizing gain from,
the Awards; (iii) a reservation of the Committee’s right to determine in
its discretion at any time that there shall be full acceleration or no
acceleration of benefits under the Awards; (iv) that only certain or
limited benefits under the Awards shall be accelerated; (v) that the
Awards shall be accelerated for a limited time only; or (vi) that
acceleration of the Awards shall be subject to additional conditions precedent
(such as a termination of employment following a Change in Control).

 

In addition to any action required or authorized by the terms of an
Award, the Committee may take any other action it deems appropriate to ensure
the equitable treatment of Participants in the event of or in anticipation of a
Change in Control, including but not limited to any one or more of the
following with respect to any or all Awards: (i) the waiver of conditions
on the Awards that were imposed for the benefit of the Corporation;
(ii) provision for the cash settlement of the Awards for their equivalent
cash value, as determined by the Committee, as of the date of the Change in
Control; (iii) provision for Awards to be assumed or replaced by
comparable Awards referencing shares of the capital stock of the successor or
acquiring entity or parent thereof; or (iv) such other modification or
adjustment to the Awards as the Committee deems appropriate to maintain and
protect the rights and interests of Participants upon or following the Change
in Control. The Committee also may accord any Participant a right to refuse any
acceleration of exercisability, vesting or benefits, whether pursuant to the
Award Agreement or otherwise, in such circumstances as the Committee may
approve.

 

Notwithstanding the foregoing provisions of this Section 7(b) or
any provision in an Award Agreement to the contrary, if any Award to any
Insider is accelerated to a date that is less than six months after the Date of
Grant, the Committee may prohibit a sale of the underlying Stock (other than a
sale by operation or law in exchange for or through conversion into other
securities), and the Corporation may impose legend and other restrictions on
the Stock to enforce this prohibition.

 

8.3.  Dissolution or Liquidation. Upon dissolution or liquidation
of the Company, other than as part of an Acquisition or similar transaction,
each outstanding Option and SAR shall terminate, but the Optionee or SAR holder
shall have the right, immediately prior to the dissolution or liquidation, to
exercise the Option or SAR to the extent exercisable on the date of dissolution
or liquidation.

 

8.4.  Adjustment of Awards Upon the Occurrence of Certain Unusual or
Nonrecurring Events. In the event of any corporate action not
specifically covered by the preceding Sections, including but not limited to an
extraordinary cash distribution on Stock, a corporate separation or other
reorganization or liquidation, the Committee may make such adjustment of
outstanding Awards and their terms, if any, as it, in its sole discretion, may
deem equitable and appropriate in the circumstances. The Committee may make
adjustments in the terms and conditions of, and the criteria included in,
Awards in recognition of unusual or nonrecurring events (including, without
limitation, the events described in this Section) affecting the Company or the
financial statements of the Company or of changes in applicable laws,
regulations, or accounting principles, whenever the Committee determines that
such

 

11

 

adjustments are appropriate in order to prevent dilution or enlargement
of the benefits or potential benefits intended to be made available under the
Plan.

 

8.5.  Related Matters. Any adjustment in Awards made pursuant to
this Section 8 shall be determined and made, if at all, by the Committee
and shall include any correlative modification of terms, including of Option
exercise prices, rates of vesting or exercisability, Risks of Forfeiture,
applicable repurchase prices for Restricted Stock, and Performance Goals and
other financial objectives which the Committee may deem necessary or
appropriate so as to ensure the rights of the Participants in their respective
Awards are not substantially diminished nor enlarged as a result of the
adjustment and corporate action other than as expressly contemplated in this
Section 8. No fraction of a share shall be purchasable or deliverable upon
exercise, but in the event any adjustment hereunder of the number of shares
covered by an Award shall cause such number to include a fraction of a share,
such number of shares shall be adjusted to the nearest smaller whole number of
shares. No adjustment of an Option exercise price per share pursuant to this
Section 8 shall result in an exercise price which is less than the par
value of the Stock.

 

9.             Settlement of Awards

 

9.1.  In General. Options and Restricted Stock shall be settled in
accordance with their terms. All other Awards may be settled in cash, Stock, or
other Awards, or a combination thereof, as determined by the Committee at or
after grant and subject to any contrary Award Agreement. The Committee may not
require settlement of any Award in Stock pursuant to the immediately preceding
sentence to the extent issuance of such Stock would be prohibited or
unreasonably delayed by reason of any other provision of the Plan.

 

9.2.  Violation of Law. Notwithstanding any other provision of the
Plan or the relevant Award Agreement, if, at any time, in the reasonable
opinion of the Company, the issuance of shares of Stock covered by an Award may
constitute a violation of law, then the Company may delay such issuance and the
delivery of a certificate for such shares until (i) approval shall have
been obtained from such governmental agencies, other than the Securities and
Exchange Commission, as may be required under any applicable law, rule, or
regulation and (ii) in the case where such issuance would constitute a
violation of a law administered by or a regulation of the Securities and
Exchange Commission, one of the following conditions shall have been satisfied:

 

(a)       the
shares are at the time of the issue of such shares effectively registered under
the Securities Act of 1933; or

 

(b)       the
Company shall have determined, on such basis as it deems appropriate (including
an opinion of counsel in form and substance satisfactory to the Company) that
the sale, transfer, assignment, pledge, encumbrance or other disposition of
such shares or such beneficial interest, as the case may be, does not require
registration under the Securities Act of 1933, as amended or any applicable
State securities laws.

 

The Company shall make all reasonable efforts to bring about the
occurrence of said events.

 

9.3.  Corporate Restrictions on Rights in Stock. Any Stock to be
issued pursuant to Awards granted under the Plan shall be subject to all
restrictions upon the transfer thereof which may be now or hereafter imposed by
the charter, certificate or articles, and by-laws, of the Company.

 

9.4.  Registration. If the Company shall deem it necessary or
desirable to register under the Securities Act of 1933, as amended or other
applicable statutes any shares of Stock issued or to be issued pursuant to
Awards granted under the Plan, or to qualify any such shares of Stock for
exemption from the Securities Act of 1933, as amended or other applicable
statutes, then the Company shall take such action at its own expense. The
Company may require from each recipient of an Award, or each

 

12

 

holder of shares of Stock acquired pursuant to the Plan, such
information in writing for use in any registration statement, prospectus,
preliminary prospectus or offering circular as is reasonably necessary for that
purpose and may require reasonable indemnity to the Company and its officers
and directors from that holder against all losses, claims, damage and
liabilities arising from use of the information so furnished and caused by any
untrue statement of any material fact therein or caused by the omission to
state a material fact required to be stated therein or necessary to make the statements
therein not misleading in the light of the circumstances under which they were
made. In addition, the Company may require of any such person that he or she
agree that, without the prior written consent of the Company or the managing
underwriter in any public offering of shares of Stock, he or she will not sell,
make any short sale of, loan, grant any option for the purchase of, pledge or
otherwise encumber, or otherwise dispose of, any shares of Stock during the
180 day period commencing on the effective date of the registration
statement relating to the underwritten public offering of securities. Without
limiting the generality of the foregoing provisions of this Section 10.4,
if in connection with any underwritten public offering of securities of the
Company the managing underwriter of such offering requires that the Company’s
directors and officers enter into a lock-up agreement containing provisions
that are more restrictive than the provisions set forth in the preceding
sentence, then (a) each holder of shares of Stock acquired pursuant to the
Plan (regardless of whether such person has complied or complies with the
provisions of clause (b) below) shall be bound by, and shall be deemed to
have agreed to, the same lock-up terms as those to which the Company’s
directors and officers are required to adhere; and (b) at the request of
the Company or such managing underwriter, each such person shall execute and
deliver a lock-up agreement in form and substance equivalent to that which is
required to be executed by the Company’s directors and officers.

 

9.5.  Placement of Legends; Stop Orders; etc. Each share of Stock
to be issued pursuant to Awards granted under the Plan may bear any applicable
restriction under the Plan, the terms of the Award or applicable law. All
certificates for shares of Stock or other securities delivered under the Plan
shall be subject to such stock transfer orders and other restrictions as the
Committee may deem advisable under the rules, regulations, and other
requirements of any stock exchange upon which the Stock is then listed, and any
applicable federal or state securities law, and the Committee may cause a
legend or legends to be put on any such certificates to make appropriate
reference to such restrictions.

 

9.6.  Tax Withholding. Whenever shares of Stock are issued or to
be issued pursuant to Awards granted under the Plan, the Company shall have the
right to require the recipient to remit to the Company an amount sufficient to
satisfy federal, state, local or other withholding tax requirements if, when,
and to the extent required by law (whether so required to secure for the
Company an otherwise available tax deduction or otherwise) prior to the
delivery of any certificate or certificates for such shares. The obligations of
the Company under the Plan shall be conditional on satisfaction of all such
withholding obligations and the Company shall, to the extent permitted by law,
have the right to deduct any such taxes from any payment of any kind otherwise
due to the recipient of an Award. However, in such cases Participants may
elect, subject to the approval of the Committee, acting in its sole discretion,
to satisfy an applicable withholding requirement, in whole or in part, by
having the Company withhold shares to satisfy their tax obligations.
Participants may only elect to have Shares withheld having a Market Value on
the date the tax is to be determined equal to the minimum statutory total tax
which could be imposed on the transaction. All elections shall be irrevocable,
made in writing, signed by the Participant, and shall be subject to any
restrictions or limitations that the Committee deems appropriate.

 

10.    Reservation of Stock

 

The Company shall at all times during the term of the Plan and any
outstanding Awards granted hereunder reserve or otherwise keep available such
number of shares of Stock as will be sufficient to

 

13

 

satisfy the requirements of the Plan (if then in effect) and the Awards
and shall pay all fees and expenses necessarily incurred by the Company in
connection therewith.

 

11.           Limitation of Rights in Stock; No Special Service
Rights

 

A Participant shall not be deemed for any purpose to be a stockholder
of the Company with respect to any of the shares of Stock subject to an Award,
unless and until a certificate shall have been issued therefore and delivered
to the Participant or his agent. Any Stock to be issued pursuant to Awards
granted under the Plan shall be subject to all restrictions upon the transfer
thereof which may be now or hereafter imposed by the Certificate of
Incorporation and the By-laws of the Company. Nothing contained in the Plan or
in any Award Agreement shall confer upon any recipient of an Award any right
with respect to the continuation of his or her employment or other association
with the Company (or any Affiliate), or interfere in any way with the right of
the Company (or any Affiliate), subject to the terms of any separate employment
or consulting agreement or provision of law or corporate articles or by-laws to
the contrary, at any time to terminate such employment or consulting agreement
or to increase or decrease, or otherwise adjust, the other terms and conditions
of the recipient’s employment or other association with the Company and its
Affiliates.

 

12.           Unfunded Status of Plan

 

The Plan is intended to constitute an “unfunded” plan for incentive
compensation, and the Plan is not intended to constitute a plan subject to the
provisions of the Employee Retirement Income Security Act of 1974, as amended.
With respect to any payments not yet made to a Participant by the Company,
nothing contained herein shall give any such Participant any rights that are
greater than those of a general creditor of the Company. In its sole
discretion, the Committee may authorize the creation of trusts or other
arrangements to meet the obligations created under the Plan to deliver Stock or
payments with respect to Options, Stock Appreciation Rights and other Awards
hereunder, provided, however,
that the existence of such trusts or other arrangements is consistent with the
unfunded status of the Plan.

 

13.           Nonexclusivity of the Plan

 

Neither the adoption of the Plan by the Board nor the submission of the
Plan to the stockholders of the Company shall be construed as creating any
limitations on the power of the Board to adopt such other incentive
arrangements as it may deem desirable, including without limitation, the
granting of stock options and restricted stock other than under the Plan, and
such arrangements may be either applicable generally or only in specific cases.

 

14.           Termination and Amendment of the Plan

 

The Board may at any time terminate, suspend or discontinue the Plan.
The Board of Directors may amend this Plan at any time, provided that any material
amendment to the Plan will not be effective unless approved by the Corporation’s
stockholders. For this purpose, a material amendment is any amendment that
would (i) materially increase the number of shares of Stock available
under the Plan or issuable to a Participant (other than a change in the number
of shares made pursuant to Section 8); (ii) change the types of
awards that may be granted under the Plan; (iii) expand the class of
persons eligible to receive awards or otherwise participate in the Plan;
(iv) reduce the price at which an Option is exercisable by amendment of an
Award Agreement (other than as permitted in Section 8); or
(v) require stockholder approval pursuant to the requirements of Nasdaq or
any exchange on which the Company is then listed or applicable law. Unless the
Board otherwise expressly provides, no amendment of the Plan shall affect the
terms of any Award outstanding on the date of such amendment. In any case, no
termination or amendment of the Plan may, without the consent of any recipient
of an Award granted hereunder, adversely affect the rights of the recipient
under such Award.

 

14

 

The Committee may amend the terms of any Award theretofore granted,
prospectively or retroactively, provided that the Award as amended is
consistent with the terms of the Plan, but no such amendment shall impair the
rights of the recipient of such Award without his or her consent.

 

15.           Notices and Other Communications

 

Any notice, demand, request or other communication hereunder to any
party shall be deemed to be sufficient if contained in a written instrument
delivered in person or duly sent by first class registered, certified or
overnight mail, postage prepaid, or telecopied with a confirmation copy by
regular, certified or overnight mail, addressed or telecopied, as the case may
be, (i) if to the recipient of an Award, at his or her residence address
last filed with the Company and (ii) if to the Company, at its principal
place of business, addressed to the attention of its Treasurer, or to such
other address or telecopier number, as the case may be, as the addressee may
have designated by notice to the addressor. All such notices, requests, demands
and other communications shall be deemed to have been received: (i) in the
case of personal delivery, on the date of such delivery; (ii) in the case
of mailing, when received by the addressee; and (iii) in the case of
facsimile transmission, when confirmed by facsimile machine report.

 

16.           Governing Law

 

The Plan and all Award Agreements and actions taken thereunder shall be
governed, interpreted and enforced in accordance with the laws of the State of
Delaware, without regard to the conflict of laws principles thereof.

 

15

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