Document:

Exhibit 10.69

LEASE

This lease (hereinafter “Lease”),
entered into by and between KING REAL ESTATE CORPORATION, TRUSTEE OF THE 1238
CHESTNUT STREET TRUST (hereinafter “Landlord”) and MFIC Corporation, a Delaware
corporation, with a present mailing address of 30 Ossipee Road, Newton, MA
02464 (hereinafter “Tenant”).  In
consideration of the rents, covenants and agreements hereinafter reserved and
contained on the part of Tenant to be observed and performed, Landlord demises
and leases to Tenant and Tenant leases from Landlord the following premises
upon the following terms, covenants and conditions.

1.                                      DEMISED PREMISES

The demised premises located
in the City of Newton, County of Middlesex, within buildings and property
commonly known as the Chestnut Street Complex and referred to hereinafter as
the “Building”, consists of the 15,400 square feet (hereinafter “SQFT”) on the
1st floor 30 Ossipee Road, 16,200 SQFT on the 2nd floor of Ossipee Road (the 1st  and 2nd floor rental space collectively being referred
to as “30 Ossipee Road”), 192 SQFT next to the Boiler Room on the 1st Floor of
1238 Chestnut Street (the “Chestnut Street Space”) and two areas in the
basement of Ossipee Road, comprised of 1,296 SQFT and 702 SQFT (referred to as
the “Basement Space”), which demised premises are shown on Exhibit A1 and A2,
attached hereto (and are collectively referred to hereinafter as the “Premises”).

The Tenant shall have, as
appurtenant to the Premises, the non-exclusive right and easement to use in
common with others entitled thereto (a) common areas in the Building and on the
land on which it is located (said Building and land are hereinafter “Landlord’s
Property”) including without limitation, sidewalks, loading facilities,
entrances and exits from public highways, lobbies, hallways and stairways and
such other facilities available to all tenants of the Building as may be
designated from time to time by the Landlord, (b) (i) The Tenant has the
following exclusive and non-exclusive right for Parking as shown in Exhibit “B”,
which exclusive parking spaces shall be designated for Microfluidics use by
Landlord’s provision of conspicuous marking or signage, and are comprised of
twenty two (22) parking spaces in rows 1 and 2 on the parking deck adjacent to
the Building (the “Deck Parking”) and eighteen (18) parking spaces in the
basement parking space beneath the Deck Parking (the “Basement Parking”),
comprised of all parking spaces along the Ossipee Road wall and eight (8)
parking spaces in the center row of the Basement Parking. Additionally,  the Tenant shall have the non-exclusive right
for Parking in the first  seven (7)
spaces of the third row of the Deck Parking to be shared on  a “first 
come first  served” basis, and (c)
the pipes, ducts, conduits, utility likes, wires, sewerage system and
appurtenant equipment serving the Premises; such rights shall always be subject
to the reasonable rules and regulations from time to time established by
Landlord, provided such rules and regulations shall not materially interfere
with Tenant’s Permitted Use (hereinafter defined) of the Premises.

EXCEPTED AND RESERVED to
Landlord is the space necessary to install, maintain and operate, by means of
pipes, ducts, wires or otherwise those utilities and services required for
Landlord’s Property, common facilities thereof and tenant premises (including
the Premises). Landlord, its agents, contractors and employees shall have the
right of access to and entry on the Premises for the purpose of such
installation, maintenance or operation of the purposes of making repairs,
alterations or additions to the Premises or to the Building if Landlord so
elects. Except in cases of emergency, Landlord shall exercise the foregoing
rights in such a manner as not to interfere unreasonably with Tenant’s use of the
Premises between the hours of 8:00 a.m. and 6-00 p.m. Monday through Friday and
between the hours of 8:00 a.m. and 1 -00 p.m. on Saturday, excluding all legal
holidays (hereinafter “Business Hours”). 
Landlord further reserves the right to change the street address and the
name of the Building, (a) if required by the City of Newton, at any time and
from time to time upon ninety (90) days prior notice to Tenant, without
liability to Tenant. If the Landlord should otherwise wish to change the street
address and the name of the Building it may only do so upon mutual written
agreement with the Tenant, at any time and from time to time upon ninety (90)
days prior notice to Tenant.

2.                                      TERM

Tenant
shall hold the Premises for a term of Five (5) years (hereinafter the “Term”)
commencing, November 1, 2006 (hereinafter the “Term Commencement Date”) and
terminating October 31, 2011. It is understood that Tenant may 

occupy the Basement Space
and Tenant may occupy the Chestnut Street Space (as soon as it has been constructed)
prior to the Term Commencement Date if both parties have signed this Lease
agreement.

3.              PREPARATION OF THE PREMISES

3.1.         Landlord’s Work.  While the Premises will be leased as is, it
is understood that Landlord agrees to perform any work for Tenant that Tenant
requires (including but not limited to building a laboratory, providing
additional structural support for second floor loading, provision of additional
electrical service to the second floor, etc.) by March 31, 2007 (The “Landlord’s
Work”).  Landlord shall pay for all
charges relating the Landlord’s Work that it performs or has performed at the
request of Tenant and Tenant will then reimburse Landlord for the entire cost
of such work amortized throughout the remainder initial Term of the Lease after
completion of the Landlord’s Work. Reimbursement will be made in equal monthly
installments with the Rent (as defined below) and will be considered as
Additional Rent (as defined below) under the terms of this Lease.  Said work shall be completed in accordance
with Tenant’s plans and specifications, Tenant’s approval of contracts, conduct
of work, work scheduling and shall be of first quality and in compliance with
all relevant codes.

3.2.           Premises Deemed Completed.  The
Premises shall be conclusively deemed ready for Tenant’s occupancy and
substantially completed as soon as in view of delays or defaults, if any, of
Tenants of its contractors, as hereinafter specified, and the elevator,
plumbing, air conditioning and electric facilities are initially available to
Tenant, in accordance with the obligations assumed by Landlord hereunder. Such
facilities shall not be deemed to be unavailable if only minor or insubstantial
details of construction, decoration or mechanical adjustments remain to be done.
The Premises shall not be deemed to be unready for Tenant’s occupancy or
incomplete if only minor or insubstantial details or construction, decoration
or mechanical adjustments remain to be done in the Premises or any part
thereof.

In the event the Premises
are not ready for occupancy, the Premises will be deemed substantially
completed and the Tenant’s obligations to pay Rent will commence if the delay
in the availability of the Premises was caused; (1) by selection of
non-building standard items, special work, changes, alterations or additions
required or made by Tenant, (2) in whole or in part by Tenant through the delay
of Tenant in submitting any plans or (3) in whole or in part by delay or
default on the part of the Tenant or its contractors or agents,

Landlord’s certificate of
substantial completion, given in good faith, or any other facts pertinent to
this Section 3, and upon issuance of occupancy permit by the City of Newton,
shall be deemed conclusive of the statements therein contained and binding upon
Tenant. Any of Landlord’s Work in the Premises not fully completed by March 31,
2007 shall thereafter be so completed with reasonable diligence by Landlord,
and in such a manner so as not to interfere unreasonably with Tenant’s use of
the Premises.

3.3          Conclusiveness of Landlord’s
Performance. Landlord shall be
deemed to have performed all of its obligations under this Article 3 unless not
later than ninety (90) days after the Term Commencement Date, Tenant shall give
Landlord written notice specifying the respects in which Landlord has not
performed any such obligations.

4.             RENT

The fixed rent (hereinafter “Fixed
Rent”) payable by the Tenant during the Term shall be the annual rent of $389,496.00 per year ($32,458.00 per
month).

$379,200.00 for
31,600 SQFT at 30 Ossipee Road

$    2,304.00 for 192 SQFT next to Boiler Room (Chestnut
Street Space)

$    7,992.00 for 1,998 SQFT in the Basement (Basement
Space)

Tenant’s obligations to pay
Fixed Rent shall begin on November 1, 2006 pro rated for any completion delays.

Tenant shall also pay as
Additional rent without notice, except as required under this Lease, and
without any abatement, deduction or setoff, all sums, impositions, costs,
expenses and other payments which Tenant in any 

of the provisions of this
Lease assumes or agrees to pay (the “Additional Rent”), and, in case of any
nonpayment thereof, Landlord shall have in addition to any other rights and
remedies, all of the rights and remedies provided by law or provided for in the
Lease for the nonpayment of Fixed Rent.

All rent payments are due in
advance without demand, deduction or set-off on the first day of each and every
month during the Term and any extension or renewal thereof. Fixed Rent for any
partial month shall be prorated.

In the event any Fixed Rent,
additional rent or any other payments are not paid within ten (10) business
days of the due date thereof, Tenant shall be charged a late fee of $100.00 for
each late payment for each month or portion thereof that said payment remains
outstanding. Said late fee shall be payable in addition to and not in exclusion
of additional remedies herein provided to Landlord.

5.              PLACE OF PAYMENT OF RENT

All payments of rent shall
be made by Tenant to Landlord without notice or demand at such place as
Landlord may from time to time designate in writing. The initial place for
payment of rent shall be 1238 Chestnut Street Trust, Inc., P.O. Box 113, Newton
Upper Falls, Massachusetts 02464-0113. Any extension of time for the payment of
any installment of rent, or the acceptance of rent after the time at which it
is due and payable shall not be a waiver of the rights of Landlord to insist on
having all other payments made in the manner and at the times herein specified.

6.              OPERATING EXPENSES AND REAL
ESTATE TAXES

a.               Operating Expenses

In the event that the
total Operating Expenses (hereinafter defined) (commencing in calendar year of
2006) for any calendar year increase above the Operating Expenses for calendar
year 2006 (hereinafter “Operating Expenses Base”). Tenant shall pay to
Landlord, as additional rent hereunder, 25% of any share increase (hereinafter “Proportionate
Share”). Landlord warrants that Tenant will occupy 25% of the total lease able
space in the Property.

Landlord shall deliver to
Tenant approximately ninety (90) days after the close of each calendar year in
which any portion of the Term may fall, an itemized statement setting forth:

a.)             The Operating Expenses for the preceding
calendar year;

b.)            The total amount of Tenant’s Proportionate
Share of any increase in the Operating Expenses for the preceding calendar year
over the Operating Expenses Base; and

c.)             The balance, if any, due from or overpaid by
Tenant for the preceding calendar year.

Tenant shall pay to Landlord
the balance due from Tenant within thirty (30) days of the receipt of each
statement. In the event such statement shows an overpayment by Tenant, Landlord
shall refund the amount of such overpayment to Tenant, provided Tenant is not
then in default in the performance of any of its obligations under this Lease.

In addition, on the first
day of each month throughout the Term, Tenant shall pay to Landlord, on account
towards Tenant’s Operating Expenses Base, one-twelfth of the total amount
reasonably estimated by Landlord to be Tenant’s share thereof for the then
current calendar year.

Any payment due under this
Article for any portion of a calendar year shall be appropriately prorated.
Landlord shall have the same rights and remedies for the nonpayment by Tenant
of any amounts due hereunder as Landlord has for the failure of Tenant to pay
rent.

The term “Operating Expenses”
shall mean all bona fide costs at customary rates for all services and items
supplied to Landlord’s Property that are consistent with those provided at
comparable buildings located in Newton, Massachusetts, including without
limitation expenses for the following:

A.                                   Compensation and fringe benefits, workmen’s
compensation, insurance premiums, wages and taxes paid to, for, or with respect
to all persons directly engaged in operating, maintaining, or cleaning Landlord’s
Property, including the Common Areas. The Common Areas shall mean the portions
of Landlord’s Property for common use by or for the benefit of more than one
tenant of the Building, including but not limited to stairways, elevators,
interior corridors, basements, roof, and any common washrooms, toilets or other
public facilities, parking areas and sidewalks;

B.                                     All utilities and services, if any, furnished
and supplied to the Common Area;

C.                                     All utilities and services, if any, furnished
and supplied generally to tenants in the Building utilizing the Building’s
common systems;

D.                                    Cost of building cleaning supplies and
equipment:

E.                                      Cost of maintenance, cleaning and repairs of
Landlord’s Property;

F.                                      Cost of snow removal and care of landscaping;

G.                                     Expense for, or on account of the repair or
replacement of equipment, , but not limited to, security, air-conditioning or
heating equipment;

H.                                    Premium for any insurance carried by Landlord
covering Landlord’s Property, including but not limited to fire, casualty,
rental interruptions and liability insurance; and

I.                                         Customary and reasonable management fees,
which shall not exceed five (5%) percent of the gross rents for the Building
per year.

Depreciation and costs
incurred for the exclusive benefit of Landlord or a specific tenant shall not
be included in Operating Expenses.

6.2          Real Estate Taxes In the event that the Real Estate Taxes
(hereinafter defined) for any tax year increase above the Real Estate Taxes for
the fiscal tax year ending 2007 (hereinafter “Tax Base”), Tenant shall pay to
Landlord as additional rent hereunder, its Proportionate Share (25%) of any
such increase. Such payments shall be made in monthly installments on the first
day of each month.

Landlord shall deliver to
Tenant approximately ninety (90) days after the close of each tax year in which
any portion of the Term may fall, an itemized statement setting forth:

A.                                 The Real Estate Taxes for the preceding
fiscal tax for the year 2007;

B.                                   The total amount of Tenant’s Proportionate
Share of the increase in Real Estate Taxes for the preceding tax year; and

C.                                   The balance, if any, due from or overpaid by
Tenant for the preceding tax year.

Tenant shall pay to Landlord
the balance due from Tenant within thirty (30) days of the receipt of such
statement shows an overpayment to Tenant, provided Tenant is not then in
default in the performance of any of its obligations under this Lease.

Any payment due under this
Article for any portion of a tax year shall be appropriately prorated. Landlord
shall have the same rights and remedies for the non-payment by Tenant of any
amounts due hereunder as Landlord has for the failure to Tenant to pay Fixed
Rent.

The term “Real Estate Taxes”
shall mean the sum of all taxes, rates and assessments, general and special,
levied or imposed against the Building and Landlord’s Property and any
improvements constructed thereon, including all taxes, rates and assessments,
general and special, levied or imposed for school, public betterment, general
or 

local improvements. If the
system of real estate taxation shall be altered or varied and any new tax shall
be levied or imposed in the jurisdiction wherein Landlord’s Property is
located, then any such new tax or levy shall be included within the term “Real
Estate Taxes” The amount of the Real Estate Taxes which shall be deemed to have
been levied or imposed with respect to Landlords’ Property and improvements
shall be such amount as the legal authority imposing Real Estate Taxes shall
have attributed thereto. In the absence of such attribution or if such legal
authority shall include immovable other than Landlord’s Property and
improvements in imposing such Real Estate Taxes, then such amount shall be
established by Landlord in Landlord’s reasonable judgment.

In
the event that Landlord obtains an abatement, reduction or refund of any Real
Estate Taxes for a tax period during which Tenant was obligated to pay a share
of the Real Estate Taxes, then Tenant shall receive its Proportionate Share of the
net proceeds of such abatement, reduction or refund, and any interest paid to
the Landlord on account of such abatement, reduction or refund, (after
deduction of all reasonable costs, including legal and appraisal fees, incurred
by Landlord in obtaining the same) but only to the extent and not in excess of
any payment made by Tenant for such taxes as required under this Article 6.
Landlord shall be under no obligation to seek such an abatement, reduction or
refund. Tenant shall not contest by any proceedings the assessed valuation of
Landlord’s Property or any part thereof for purposes of obtaining a reduction
of its assessment or of any taxes.

Tenant
shall pay prior to delinquency, all municipal, county, state or federal taxes
which shall be levied, assessed or due and unpaid on any leasehold interest, on
any investment of Tenant in the Premises, or on any personal property owed,
installed or used by Tenant, or on Tenant’s right to occupy the Premises.
Notwithstanding anything to the contrary, Tenant shall have the right at its
sole cost and expense to contest the validity of and to seek an abatement of
any of the foregoing taxes, excluding Real Estate Taxes.

7.              QUIET ENJOYMENT

The Tenant, upon payment of
the rent herein reserved and upon the performance of all the terms and
conditions of this Lease, shall at all times during the Term and during any
extension or renewal term, peaceably and quietly enjoy the Premises without any
disturbance from Landlord or from any other person claiming through Landlord, subject,
nevertheless, to the terms and conditions of this Lease and to the mortgages
hereinafter mentioned.

8.              USE OF THE PREMISES

A.                                   The Premises may be used by Tenant or its
assignees for the purpose of (1) receiving and shipping of research and
manufacturing equipment; (2) light manufacturing  and assembly of research equipment and
consumables and production-scale process equipment, performance testing of
completed process equipment as is currently performed on the Premises and such
larger equipment and manufacturing as Tenant’s customers may require; (3)
laboratory research and development work; and (4) general administrative office
work; and for no other purpose (hereinafter referred to “Permitted Use”); (5)
sales/marketing activities including presentation of technical seminars and
business meetings from time to time.

B.                                     The Tenant shall not at any time use or
occupy the Premises in violation of the certificate of occupancy or building
permit issued for the Building or any applicable zoning ordinance. Landlord
represents and warrants that the statements in the Lease of the nature of the
business to be conducted on the Premises are lawful under the certificate of
occupancy or building permit or is otherwise permitted by law.

9.              ALTERATIONS

Except for those items
specified elsewhere herein, no structural alterations, additions or
improvements (hereinafter ‘‘Alterations’’) to the Premises shall be made by
Tenant without the prior written consent of 

Landlord, which shall not be
unreasonably withheld. Tenant shall not paint over interior sandblasted brick
walls. All work done in connection with any Alterations shall be done in a good
and workmanlike manner employing materials of good quality and in compliance
with all laws, rules, orders and regulations of governmental authorities having
jurisdiction thereof. If Tenant employs outside contractors for Alterations to
the Premises, Tenant shall be responsible to ensure that contractor abides by
all reasonable procedures, rules and regulations as promulgated by the
Landlord. Tenants shall indemnify and hold Landlord harmless from additional
costs incurred in supplying services or repairing damage caused by Tenant’s
contractors. Any such contractor shall be required to provide a certificate of
liability insurance in the amount of $1,000,000.00 to perform work within the
Building.  Any Alteration made by Tenant
after such consent shall have been given, and any fixtures installed as part
thereof shall, at Landlord’s option, become the property of Landlord upon the
expiration or other sooner termination of this Lease. The Tenant shall yield up
the Premises in good order and repair, reasonable wear and tear and damage by
fire or casualty only excepted.

10.       MAINTENANCE AND REPAIR

Except as otherwise provided
in this Article and Articles 12 and 13, Landlord shall keep and maintain in
good order and repairing the common facilities and structural portions of the
Building including but not limited to the roof, exterior walls, windows, floor
slabs, columns, elevators, public stairways and corridors, lavatories and
utility systems and equipment external to the Premises (specifically excluding
any such equipment installed by or on behalf of Tenant) serving the Premises of
the Common Areas.

The Tenant shall make all
non-structural repairs necessary to maintain the Premises in good order and
repair, including, without limitation, all glass, doors and all interior
utility systems and equipment serving solely the Premises exclusively and
Tenant shall return to Premises to Landlord at the end of the Term in good
condition, reasonable wear and tear and damage by fire or other casualty
excepted. Tenant shall also be responsible for the cost of any repairs
necessitated as the result of Tenant’s neglect, fault or excessive use of
drainage facilities, or that of Tenant’s agents or employees.

All repairs made by either
Landlord or Tenant shall be done in a good workmanlike manner in accordance
with all applicable laws.

11.       INSURANCE

b.     Tenant’s Insurance.  The Tenant shall save Landlord harmless and
indemnified from and against all injury, loss, claim or damage to any person or
property while on the Premises or Landlord’s Property arising out of the use or
occupancy of the Premises by Tenant (unless caused by the act, neglect or
default of Landlord, its employees, agents, licensees or contractors), and from
and against all injury, loss, claim or damage to any person or property
anywhere on the Premises or Landlord’s Property occasioned by any act, neglect
or default of Tenant or of its employees, agents licensees or contractors. The
Tenant shall maintain with respect to the Premises and Landlord’s Property
comprehensive general liability and property damage insurance including the
broad form comprehensive general liability endorsement and a contractual
liability coverage endorsement in amounts not less than $2,000,000.00 combined
single limit and an annual aggregate of at least $2,000,000.00. Such insurance
shall insure Landlord as well as Tenant against injury to persons or damage to
property as herein provided.

The Tenant shall maintain,
at its sole cost and expense, fire and extended coverage insurance for all of
its contents, furniture, furnishings, equipment, improvements, funds, personal
property, floor coverings and fixtures located within or about the Premises,
providing protection in an amount equal to One Hundred (100%) percent of the
insurable value of said items.

All of Tenant’s insurance
shall be with companies qualified to do business in Massachusetts, and shall be
issued by insurance companies with a general policyholder’s rating of not less
than A-13 and a financial rating of not less than Class X as rated in the most
current ‘‘Best’s” Insurance Reports. Such insurance may be maintained by Tenant
under a blanket policy or policies so-called, provided the coverage afforded
Landlord is 

not reduced or diminished by
reason of the use of such blanket insurance policy, and provided further that
the requirements set forth herein are otherwise satisfied.

In the event this Lease is
extended beyond the original term hereof, and every five years thereafter,
Tenant shall, upon written notice thereof from Landlord, increase the amount of
the liability insurance required hereunder to an amount, which is the greater
of:

a.
The original amount of liability insurance required hereunder plus that
percentage of said amount as is equal to the percent of increase, if any, in
the Consumer Price Index for all urban consumers for Boston, Massachusetts
published by the Bureau of Labor Statistics, U.S. Department of Labor (Index)
as at the date of the required increase in liability insurance hereunder over
the said Index as at the Term Commencement Date; or

b.
The amount of liability insurance, as reasonably determined by Landlord,
required in similar buildings in the Boston area.

The Tenant shall deposit
with Landlord certificates of insurance that it is required to maintain under
this Lease, at or prior to the Term Commencement Date, and thereafter, within
twenty (20) days prior to the expiration of each such policy. Such policies
shall provide that the policies may not be changed or canceled without at least
(20) days’ prior written notice to Landlord.

The Tenant covenants that in
the event it keeps upon the Premises or Landlord’s Property any substance of
dangerous, inflammable or explosive characters or makes any use of the Premises
which increases the rate of insurance on the Premises or Landlord’s Property,
Tenant shall promptly pay to Landlord upon demand any such increase resulting
there from, which shall be due and payable as additional rent hereunder.

11.2.                         Landlord’s Insurance.

Landlord shall maintain fire
and extended coverage insurance on the Building (including the work performed
under Section 3.1 herein) providing protection in any amount reasonably determined
by Landlord to be adequate.

11.3.                         Waiver of Subrogation.

Any insurance carried by
either party with respect to the Premises or property therein or occurrences
thereon shall, if it can be so written without additional premium or with an
additional premium, which the other party agrees to pay, include a clause or
endorsement denying to the insurer rights of subrogation against the other
party. Neither Landlord nor Tenant shall be liable to the other or to any
insurance company (by way of subrogation or otherwise) insuring the other party
for any loss or damage to any building, structure or other tangible property,
or any resulting loss of income, or losses under worker’s compensation laws and
benefits, even though such loss or damage might have been occasioned by the
negligence of such party, its agents or employees if any such loss or damage is
covered by insurance benefiting the party suffering such loss of damage or was
required to be covered by insurance pursuant to this Lease.

12.                                   DAMAGE TO THE PREMISES

12.1.        Landlord’s Right to
Terminate.  If more
than 30% of the net rentable square feet portion of the Premises or the
Building is substantially damaged by fire or other casualty in a manner that
would affect Tenant’s leasehold interest and ability to conduct its business,
Landlord may terminate this Lease as of the date of such damage by giving
Tenant written notice of such termination within sixty (60) days of such fire
or casualty.

12.2.        Landlord’s Obligation to
Repair.  In the event
that Landlord elects not to terminate this Lease as aforesaid, then this Lease
shall continue in full force and effect and Landlord shall promptly repair the
damage and restore the Premises, excluding Tenant’s personal property,
fixtures, furniture, equipment and floor coverings, to substantially the
condition thereof immediately prior to such damage. Landlord’s obligation to
repair such damage and restore the Premises shall be limited to the extent of
the insurance proceeds and made available to Landlord. Landlord 

shall not be liable for any
inconvenience or annoyance to Tenant or injury to the business of Tenant
resulting from delays in repairing such damage.

12.3.        Rent Abatement.
For so long as such damage renders the Premises or a portion thereof
unsuitable for the Permitted Use, a just and proportionately abatement of Fixed
Rent, Operating Expenses and Real Estate Taxes 
shall be made.

12.4. Tenant’s
Option to Terminate. If the Premises are in Tenant’s
reasonable judgment  rendered
substantially unsuitable for the Permitted Use, 
then Tenant may elect to terminate this Lease prior to the time such
damage is repaired if an only if:

a.               The Landlord fails to give written notice
within sixty (60) days of said fire or casualty of its intention to restore the
Premises; or

b.              The Landlord fails to restore the Premises to
a condition suitable for the Permitted Use within one hundred twenty (120~ days
of said fire or casualty, provided such failure is not due to the action or
inaction of Tenant, its employees or agents, or causes beyond the reasonable
control of Landlord.

Tenant
shall exercise its option to terminate by giving written notice to Landlord
within thirty days after Landlord’s failure to notify or failure to restore, as
specified above.

12.5. Definitions. The term “substantial damage” as used herein shall refer
to damage of such character that the same cannot in the ordinary course be
reasonably expected to be repaired within ninety (90) days from the time that
such work would commence.

13.                                   EMINENT DOMAIN

In the event that the whole
of the Premises or Landlord’s Property shall be lawfully condemned or taken in
any manner for public or quasi-public use, this Lease shall forthwith terminate
as of the date of divesting of Landlord’s title.

In the event that only a
part of the Premises or Landlord’s Property shall be so condemned or taken,
then, if such condemnation or taking is Substantial as hereinafter defined,
either Landlord or Tenant may by delivery of notice in writing to the other
within sixty (60) days following the date on which Landlord’s title has been
divested by such authority, terminate this Lease. “Substantial” shall mean any
condemnation or taking which:

a.               Results in the loss of reasonable access to
the Premises;

b.              Results in the loss of Tenant of twenty-five
(25%) percent or more of the floor area of the Premises; or

c.               Results in loss of facilities in the Building
that supply heat, air conditioning, water, drainage, plumbing, electricity or
other utilities to Premises.

If this Lease is not
terminated as aforesaid or if such condemnation or taking is not substantial,
then this Lease shall continue in full force and effect except that the Fixed
Rent, Operating Expenses and Real Estate Taxes 
shall be equitably abated as of the date of divesting of title. Landlord
shall, with reasonable diligence and at its expense, restore the remaining
portion of the Premises as nearly as practicable to the same condition as it
was prior to such condemnation or taking. Landlord’s obligation to restore the
remaining portion of the Premises shall be limited to the extent of the
condemnation proceeds made available to Landlord.

In the event of any
condemnation or taking, Landlord shall be entitled to receive the entire award
in the condemnation proceedings, including any award made for the value of the
estate vested by this Lease in Tenant, and Tenant hereby expressly assigns to
Landlord any and all right, title and interest of Tenant now or hereafter
arising in or to any such award or any part thereof. Notwithstanding the foregoing,
Tenant shall have the right to bring a separate condemnation proceeding for
relocation expenses, unamortized leasehold improvements paid for by Tenant and
trade fixtures payable in the manner and extent as, and if, provided by law.

14.                                                           LANDLORD’S SERVICES

14.1 Electric
Current

a.             There is a separate electric meter (meters) for
measuring electricity furnished to the Premises. Tenant shall contract with the
company supplying electric current for the purchase and obtaining by Tenant of
electrical current directly from such company, which shall be billed directly
to, and paid for by, Tenant. This shall include all current used in the
Premises, including but not limited to all electricity used for lighting,
office equipment and machines.

b.             If Tenant shall require electrical current for use in
the Premises in excess of the present capacities and if in Landlord’s
reasonable judgment, Landlord’s facilities are inadequate for such excess
requirements or such excess requirements will result in an additional burden on
the Building systems and additional cost to Landlord on account thereof, then
Landlord shall upon written request and at the sole cost and expense of Tenant,
furnish and install such additional wires, conduits, feeders, switchboards and
appurtenances as reasonably may be required to supply such additional
requirements of Tenants, provided current therefore is available to Landlord,
and provided further that the same shall be permitted by applicable laws and
insurance regulations and shall not cause permanent damage to the Building or
the Premises, cause or create a dangerous or hazardous condition, entail
excessive or unreasonable alterations or repairs, or interfere with or disturb
other tenants or occupants of the Building. Tenant shall reimburse Landlord on
demand for all costs incurred by Landlord on account thereof.

c.             Tenant, at Tenant’s expense, shall purchase and install
all replacement lamps (including, but not limited to, incandescent and
fluorescent lights) used in the Premises.

d.             Landlord shall not in any way be liable to Tenant for
any loss, damage or expense which Tenant may sustain or incur if the quantity,
character or supply of electrical energy is changed or is no longer available
or suitable for Tenant’s requirements.

e.             Tenant
agrees that it shall not make any material alterations or material addition to
the electrical equipment or appliances in the Premises without obtaining the
prior written consent of Landlord in each instance, which consent will not be
unreasonably withheld, and Tenant shall promptly advise Landlord of any other
alterations or addition to such electrical equipment appliances.

14.2. Water. Landlord shall furnish cold water to the
Premises or to a common area lavatory and drinking purposes. If Tenant requires
uses or consumes water for any purpose other than for the aforementioned
purposes, Landlord may (a) assess a reasonable charge for the additional water
used or consumed by Tenant; or (b) install a water meter and thereby measure
Tenant’s water consumption for all purposes. In the latter event, Landlord
shall pay the cost of the meter and the cost of installation thereof and shall
keep said meter and installation equipment in good working order and repair.
Tenant agrees to pay for water consumed, as shown on said meter, together with
the sewer use charge based on said meter charges as and when bills are
rendered. On default in making such payment, Landlord may pay such charges and
collect the same from Tenant as additional rent hereunder. All piping and other
equipment and facilities for use of water outside the Building core will be
installed and maintained by Landlord at Tenant’s sole cost and expense.

14.3. Gas. Landlord shall furnish any and all equipment  for the purpose of heating and air
conditioning the Premises both during Tenant’s normal Business Hours, and
Tenant shall pay, as additional rent hereunder, all costs in connection
therewith. Landlord shall effect any necessary repairs or replacement of such
equipments, while Tenant shall assume responsibility for any service contracts
for such equipment and all customary maintenance and service costs associated
therewith. If Tenant shall pay for repairs or replacement that is not within
the scope of the customary service and maintenance then Landlord shall reimburse
Tenant for such costs in a timely manner after presentation of paid invoices
for such expense.

14.4. Interruption or
Curtailment of Services. Landlord reserves the right, with notice, to interrupt, curtail, stop
or suspend (a) the furnishing of elevator and other services, and (b) the
operation of the plumbing and electric systems whenever necessary for repairs,
alterations, replacements or improvements desirable or necessary to be made in
the reasonable judgment of Landlord or whenever necessary due to accident or
emergency, difficulty or inability in securing supplies or labor strikes, or
any other cause beyond the reasonable 

control of Landlord, whether
such other cause be similar or dissimilar to those hereinabove specifically
mentioned, until said cause has been removed. Except when caused by the gross
negligence of Landlord or where such interruption, curtailment, stoppage or
suspension continues for more than five (5) days there shall be no diminution
or abatement of rent or other compensation due from Tenant to Landlord
hereunder, nor shall this Lease be affected or any of Tenant’s obligations
hereunder reduced, and Landlord shall have no responsibility or liability for
any such interruption, curtailment, stoppage or suspension of services or
system, except that Landlord shall exercise all due diligence to eliminate the
cause of same.

14.5. Energy
Conservation.
Notwithstanding anything to the contrary contained in this Lease, Landlord may
institute such reasonable policies, programs or measures as may be necessary,
required or expedient for the conservation and/or preservation of energy or
energy services, provided either the majority of similar buildings in Newton,
Massachusetts are subject to similar policies, programs or measures, or such are
necessary or required to comply with applicable governmental codes, rules,
regulations or standards.

15.                                   ACCESS

The Buildings shall remain
open during all Business Hours, except as provided herein, and Tenant’s
servants, employees, agents and business invitees shall have the free and
uninterrupted right of access in common with others entitled thereto to the
Premises during Business Hours. Subject to reasonable security measures, Tenant
and its employees shall have access to the Premises at all other times.

16.                                   SUBLEASE AND ASSIGNMENT

16. 1. Generally. Other than sublets or tenancies at will
currently in effect with Tenant, Tenant shall not voluntarily, involuntarily or
by operation of law assign, transfer, mortgage or otherwise encumber the Lease
or any interest of Tenant therein, in whole or in part of the Premises or
permit the Premises or any part thereof to be used or occupied by others,
without the prior written consent of Landlord. Any subletting or assignment
pursuant to this Article shall be subject to and conditioned upon the
following:

a.               At the time of any proposed subletting or
assignment, Tenant shall not be in default under any of the terms, covenants or
conditions of this lease;

b.              The sub-lessee or assignee shall occupy only
the Premises and conduct its business in accordance with the Permitted Use;

c.               Prior to occupancy, Tenant and its assignee
or sub-lessee shall execute, acknowledge and deliver to Landlord a fully
executed counterpart of a written assignment of lease or a written sublease, as
the case may be, by the terms of which:

1.               In case of an assignment, Tenant shall assign
to such assignee Tenant’s entire interest in this Lease, together with all
prepaid rents hereunder, and the assignee shall accept said assignment and
assume and agree to perform directly for the benefit of Landlord all of the
terms, covenants and conditions of this Lease on Tenant’s part to be performed;
or

2.               In case of a subletting, the sub-lessee
hereunder shall agree to be bound by an to perform all of the terms, covenants
and conditions of this Lease on the Tenant’s part to be performed, except the
payments or rents, charges and other sums reserved hereunder, which Tenant
shall continue to be obligated to pay and shall pay to Landlord;

d.              Tenant shall pay to Landlord monthly one-half
of the excess of the rents and other charges received by Tenant pursuant to the
assignment or sublease over the rents and other charges reserved to Landlord
under this Lease attributable to the space assigned or sublet;

e.               Tenant shall acknowledge that,
notwithstanding such assignment or sublease and consent of Landlord thereto,
Tenant shall not be released or discharged from any liability whatsoever under
this Lease and will continue to be liable with the same force and effect as though
no assignment or sublease had been made; and

f.                 Tenant shall pay to Landlord the sum of Five
Hundred ($500) Dollars to cover Landlord’s administrative costs, overhead and
attorneys’ fees in connection with each such assignment or subletting.

 

16.2. Landlord’s
Consent.
Landlord shall not unreasonably withhold its consent to a proposed transfer,
sublease or assignment pursuant to the preceding Section 16.1. Landlord’s
failure to consent shall be deemed unreasonable if the conditions set forth in Subsections
16.1 (a) - (f) are met and if:

a.                                      The proposed assignment or subletting is to
be made to a parent, subsidiary or successor corporation in connection with the
reorganization of Tenant. to a partnership of which Tenant is a general
partner, or with respect to a sale of Tenant’s stock or assets or merger with
another entity, provided with net worth of such successor is at least equal to
the net worth of Tenant as of the Term Commencement Date and the successor has
a good reputation in the community; or

b.                                     The proposed assignee or subtenant has a good
credit rating, which shall be at least equal to that of Tenant as of the Term
Commencement Date, and demonstrable ability to comply with the terms and
conditions of this Lease, a good reputation in the community and the proposed
use by such subtenant or assignee (even though Permitted Use) could not in
Landlord’s reasonable opinion be expected to detract from the character of the
Building at the time of the proposed assignment or sublease.

16.3.  No. Waiver. The consent by Landlord to an assignment or subletting shall not in any
way be construed to relieve Tenant from obtaining the express consent of
Landlord to any further assignment or subletting for the use of all or any part
of the Premises, nor shall the collection of rent by Landlord from any
assignee, sub lessee or other occupant after default by Tenant be deemed a
waiver of this covenant or the acceptance of such assignee, sub lessee or
occupant as tenant or a release of Tenant from the further performance by
Tenant of the obligations in this Lease on Tenant’s part to be performed.

17.                                   SUBORDINATION

This Lease is subject and
subordinate to any ground leases and real estate mortgages to any lender prior
to or subsequent to the date to execution and delivery of this Lease and to all
renewals, modifications, consolidations, replacements or extensions thereof,
provided that each such ground lessor or mortgagee enters into an agreement
recognizing Tenant under this Lease and providing that, in the event of
foreclosure, Tenant shall remain undisturbed under this Lease if Tenant is not
in default under any of the terms and conditions of the Lease. In confirmation
of the foregoing, Tenant shall, upon the request of Landlord, promptly execute
and deliver all such instruments as may be appropriate to subordinate this
Lease to any mortgages securing notes issued by Landlord and to all advances
made there under and to the interest thereon and all renewals, replacements and
extensions thereof. At the request of Landlord, Tenant shall join in a
subordination agreement requested by any mortgagee who desire to subordinate
its mortgage to this Lease, provided, however, that the provisions of said
mortgage relating to the receipt and application of insurance proceeds and condemnation
awards shall in no event be subordinated to this Lease.

18.                                   TENANT’S COVENANTS

The Tenant covenants and
agrees as follows:

a.     Tenant shall perform promptly all of the
obligations of Tenant set forth in this Lease, and shall pay when due all Rent,
Fixed or additional, and all charges which by the terms of this Lease are to be
paid by Tenant.

b.     Tenant shall use the Premises only for the
Permitted Use, as set forth in Article 8.

c.     Tenant shall pay all costs on demand for
all loss or damage suffered or incurred by Landlord caused by any nuisance or
neglect suffered on the Premises or Landlord’s Property due to Tenant to its
agents, employees, invitees or assignees.

d.     Tenant shall keep the interior of the
Premises neat and in good order, repair and condition, shall keep all interior
glass in good condition and shall replace any exterior glass broken by Tenant,
its employees or agents with glass of the same quality.

e.     Tenant shall permit Landlord and its agents
to examine the Premises at reasonable times and upon reasonable notice to
Tenant and to show the Premises to prospective tenants commencing one year
prior to the expiration of this Lease, unless and until Tenant shall have
provided Landlord with notice of its intention to extend the Term hereof, in
accordance with the provisions Section 36 herein below.

f.      Tenant shall pay all costs for utilities
that are not supplied by Landlord that are charged directly to Tenant by any
utility company.

g.     Tenant shall comply with all federal, state
and municipal laws, codes and regulations and governmental health, safety and
police requirements and obtain all required licenses and permits relating to
the Premises or Tenant’s use thereof.

h.     Tenant shall cause any furniture, equipment
or supplies to be moved in our out of the Building only upon the elevator
designated by Landlord of that purpose and then only during such hours as may
be established by Landlord.

i.      Tenant shall not injure, overload, deface
or otherwise harm the Premises or Landlord’s Property, commit any nuisance,
permit the emission of any objectionable odor or noise from the Premises, make
any use of the Premises or Landlord’s Property which will increase the cost of
Landlord’s insurance (unless Tenant pays for any such increased cost), store or
dispose of trash or refuse on or otherwise obstruct the driveways, walks,
halls, parking areas or other common areas.

j.      Tenant shall not suffer or permit strip or
waste.

k.     Tenant shall not permit any use that may be
deemed obnoxious to any other tenants in the Building or create a public or
private nuisance.

l.      Tenant shall not place or maintain any
merchandise, vending machines or other articles for the sale of goods or
services on any sidewalk or ways adjacent to the Premises, or elsewhere on the
exterior or in the interior of the Premises, except for sole us of company
employees within the demised Premises.

m.    Tenant shall not conduct any auction, fire,
bankruptcy or going-out-of-business sale without the approval of Landlord,
which shall not be unreasonable witheld, nor use or permit the use of any sound
apparatus for reproduction or transmission of music or sound that is audible
beyond the physical interior of the Premises.

n.     Tenant shall not install any window air
conditioning unit in or upon the Premises.

o.     At the expiration of the term or earlier
termination of this Lease, Tenant shall surrender all keys to the Premises,
remove all of its trade fixtures and personal property in the Premises and all
Tenant’s signs and signage wherever located, repair all damage caused by such
removal and yield up the Premises (including all Alterations made by Tenant),
subject to Article 9 of this Lease, broom-clean and in the same good order and
repair in which Tenant is obliged to keep and maintain the Premises by the
provisions of the Lease. Any property not so removed shall be deemed abandoned
and may be removed and disposed of by Landlord in such manner as Landlord shall
determine and Tenant shall pay Landlord the entire cost and expense incurred by
it for such removal and disposition and in making any incidental repairs and
replacements to the Premises.  Tenant
shall also pay for the use and occupancy of the Premises during performance of
its obligations under this Article.

p.     Tenant shall not place a load upon any
floor of the Premises or building exceeding the floor load per square foot area
which such floor was designed to carry or structurally reinforced to permit and
which is allowed by law. Business machines and mechanical equipment shall be
placed and maintained by Tenant at Tenant’s expense in settings sufficient to
absorb and prevent vibration, noise and annoyance. Any moving of such equipment
shall be at the sole risk and hazard of Tenant and Tenant shall indemnify and
save Landlord harmless against and from any liability, loss, injury, claim or
suit resulting directly or indirectly from such moving.

q.     Other than existing installed signs, Tenant
shall not place any signs or other forms of advertising on or about the
exterior of the Premises or the Building, upon any sidewalks or ways adjacent
to the Building or within the interior of the premises that are visible from
the exterior of the Building with out the prior written consent of Landlord
which shall not be unreasonably withheld. No signs shall be affixed in any
manner to the windows of the Premises. Tenant shall hang it own drapes 

or
blinds which, when viewed from the exterior of the Building shall be white,
whether the drapes or blinds are open or drawn closed.  Landlord acknowledges that Tenant’s present
signage is acceptable and may remain throughout this Lease.

19.                                   EVENTS OF DEFAULT

The following shall be
deemed to be defaults hereunder:

a. If Tenant shall fail to
pay the Fixed Rent, Operating Expenses or Real Estate Taxes when due hereunder
and such failure continues for more than ten (10) business days after the date
due, or if Tenant fails to pay any other charges provided for hereunder and
such failure continues for more than ten (10) business days after written
notice from Landlord designating such failure; or

b. If Tenant shall fails to
comply with any other material obligation or covenant hereunder and such
failure continues for more than thirty (30) days after written notice from
Landlord to Tenant specifying such failure. Notwithstanding the foregoing, if
such failure by its nature cannot be cured within thirty (30) days, Tenant
shall be given such additional time as is reasonably necessary, provided Tenant
has commenced diligently to correct said failure and thereafter diligently pursues
such correction to completion; or

c. If any assignment shall
be made by Tenant or any guarantor of this Lease for the benefit of creditors;
or

d.              If Tenant’s leasehold interest shall be taken
on execution; or

e.     If a lien or other involuntary encumbrance
is filed against Tenant’s leasehold interest to Tenant’s other property, which
is not discharged or bonded against within forty five (45) days thereafter; or

f.      If a petition is filed by or against
Tenant (not discharged within 45 days) of the Lease for adjudication as a
bankrupt, or for reorganization or an arrangement under any provision of the
Federal Bankruptcy Code as then in force and effect (not discharged with sixty
(60) days from the filing of such petition) ; or

g.     If a receiver has been appointed for any
part of Tenant’s property.

 

20.                                   RIGHTS OF LANDLORD UPON
TENANT’S DEFAULT.

20.1 Landlord’s
Remedies. In
the event any material default shall occur (notwithstanding any waiver, license
or indulgence granted by Landlord with respect to the same or any other default
in any former instance), Landlord shall have the right, then or at any time
thereafter, at its sole election either:

a.     To terminate this Lease by written notice
to Tenant, which termination shall take effect on the date of Landlord’s dispatch
of said notice or on any later date (on or prior to the expiration of the
then-current portion of the Term) specified in Landlord’s termination notice;
or

b.     To enter upon and take possession of the
Premises (or any part thereof in the name of the whole) without demand or
notice, and repossess the same as of the Landlord’s former estate, expelling
Tenant and those claiming under Tenant, forcibly if necessary, without being
deemed guilty of any manner of trespass and without prejudice to any other
remedy for any default hereunder.

 

Landlord’s
repossession of the Premises under this Article shall not be construed to
effect a termination of the Lease, unless Landlord sends Tenant a written
notice of termination as required hereunder.

20.2. Re-letting. Landlord shall have
the right (as its sole election and whether or not this Lease shall be
terminated under Section 20.1) to re-let the Premises or any part thereof for
such period or periods (which may extend beyond the Term and at such rent or
rents and upon such other terms and conditions as Landlord may deem advisable,
and in connection with any such re-letting,

20.3. Removal of Goods.
If Landlord shall terminate this Lease or take possession of the Premises by
reason of a default, Tenant, and those claiming under Tenant, shall forthwith
remove their goods and effects from the Premises within thirty (30) business
days of receipt of a notice of termination or Landlord’s taking possession. If
Tenant or any such claimant shall fail so to remove forthwith, Landlord,
without liability to 

Tenant or to those claiming
under Tenant, may remove such goods and effects and may store the same for the
account of Tenant or of the owner thereof in any place selected by Landlord or,
at Landlord’s sole election, Landlord may sell the same at public auction or at
private sale on such terms and conditions as to price, payment and otherwise as
Landlord, in its sole judgment, may deem advisable. Tenant shall have the right
to reimburse itself from the proceeds of any such sale for all such costs paid
or incurred by Landlord. If any surplus sale proceeds shall remain after such
reimbursement, Landlord may deduct from such surplus any other sum due to
Landlord hereunder and shall pay over to Tenant the remaining balance of such
surplus sale proceeds, if any.

20.4. Current Damages.
No termination or repossession provided for in Section 20.1 shall relieve
Tenant (or any guarantor of Tenant’s obligations hereunder) of its liabilities
and obligations hereunder or under its instrument of guarantee, all of which
shall survive such termination or repossession. In the event of any such
termination or repossession, Tenant shall pay Landlord, in advance, on the
first day of each month (and pro rata for the fraction of any month) for what
would have been the entire balance of the original Term or of the then current
extension period, one-twelfth of the Annual Rental for the Premises, as defined
in Section 20.5 hereof, less the proceeds (if any) of any re-letting of the
Premises which remain after deducting Landlord’s expenses in connection with
such re-letting. Such expense shall include, without limitation, removal,
storage and the cost of painting and refurbishing the Premises and attorneys’
and brokers’ fees.

20.5. Annual Rental. The Annual Rental for the Premises shall be the total of (a) the Fixed
Rent including Tenant’s Share of Real Estate Taxes and Operating Expenses, and
all other charges payable by Tenant (whether or not to Landlord) for the lease
year ending next prior to such termination or repossession; (b) the cost of
heating the Premises to prevent the freezing of pipes while the Premises
remains vacant; (c) any increase in the premiums payable by Landlord for any
insurance coverage maintained with respect to the Premises while the Premises
remains vacant, if the increases are attributable to the vacancy of the
Premises; (d) the cost of any repairs to the Premises which become necessary
during the vacancy of the Premises and which would have been required of Tenant
under the Lease if the Lease had not been terminated; and (e) the cost of any
repairs to the Premises which, notwithstanding that they became necessary
because of the acts of some other person(s), would probably not have become
necessary if the Premises had not been vacant.

20.6. Liquidated Damages. In lieu of any other damages or indemnity
and in lieu of full recovery by Landlord of all sums payable under all the
foregoing provisions of this Article, Landlord may by written notice to Tenant,
at any time after termination of this Lease or repossession of the Premises
elect to recover, and Tenant shall thereupon pay, liquidated damages. The
liquidated damages shall be equal to (a) the aggregate of the Fixed Rent and
additional rent accrued in the twelve months ended next prior to such
termination or repossession; plus (b) the amount of rent of any kind accrued
and unpaid at the time of termination or repossession; and less (c) the amount
of any recovery by Landlord under the foregoing provision of this Article up to
the time of payment of such liquidated damages. Notwithstanding the foregoing,
the liquidate damages shall never be more than the Fixed Rent and additional
rent due for the remainder of the Term. Nothing contained in this Lease shall,
however, limit or prejudice the right of Landlord to prove for and obtain in
proceedings for bankruptcy or insolvency by reason of the termination of this
Lease, an amount equal to the maximum allowed by any statute or rule of law in
effect at the time when, and governing the proceedings in which, the damages
are to be proved, whether or not the amount be greater, equal tom, or less than
the amount of the loss or damages referred to above.

20.7. Remedies Cumulative.   Any and all rights and remedies which
Landlord may have under this Lease and at law and equity shall be cumulative
and shall not be deemed inconsistent with each other, and any two or more of
all such rights and remedies may be exercised at the same time insofar as
permitted by law.

20.8. Landlord’s Right to Cure
Defaults. Landlord
shall have the right but not the obligation, to cure at any time and without
notice, any default by Tenant under the Lease. Whenever Landlord so elects, all
costs and expenses incurred by Landlord, including reasonable attorney’s fees
from curing a default, shall be paid by Tenant to Landlord on demand, as
additional rent hereunder, together with lawful interest thereon from the date
of payment by Landlord to the date of payment Tenant.

20.9. Costs of Enforcement.
Tenant shall pay, within seven (7) business days after receipt of Landlord’s
bill therefore, reasonable costs and expenses (including without limitation
reasonable attorneys’ fees) incurred by Landlord, in enforcing Tenant’s
obligations or Landlord’s rights under this Lease.

21.                                   NO WAIVER: NO ACCORD AND
SATISFACTION

21.1. No Waiver.  Any
consent or permission by Landlord or Tenant to any act or omission which
otherwise would be a default hereunder or any waiver by Landlord or Tenant of
the terms, covenants or conditions herein, shall not in any way be held or
construed to operate so as to impair the continuing obligation of any term,
covenant or condition herein, or to permit any similar acts or omissions. The
failure of Landlord to seek redress for a violation of, or to insist upon the
strict performance of, any covenant, condition or obligation of this Lease
shall not be deemed a waiver of such violation nor prevent a subsequent act,
which would have originally constituted a violation, from having all the force
and effect of an original violation. The receipt by Landlord of any rent with
knowledge of any default hereunder shall not be deemed to have been a waiver of
such default, unless such waiver is in writing signed by the Landlord.

21.2.  No
Accord and Satisfaction.   No acceptance by Landlord of a
lesser sum than any sum due under any provision of this Lease shall be deemed
to be other than on account of the earliest installment of such sum due, nor
shall any endorsement or statement on any check or letter accompanying any
check or payment be deemed an accord and satisfaction, and Landlord may accept
such check or payment without prejudice to any rights to recover the balance of
such installment or pursue any other remedy in this Lease provided.

22.                                   RECORDING

The Landlord and Tenant
agree not to record this Lease, but each party agrees, on request of the other,
to execute, acknowledge and deliver a notice of lease in recordable form, which
may be recorded with Middlesex South District Registry of Deeds. Such notice
shall expressly state that it is executed pursuant to the terms of this Lease
and is not intended to vary the terms and conditions of this Lease, and in no
event shall such notice set forth the rent or other charges payable by Tenant
under this Lease.

23.                                   LANDLORD’S LIABILITY

Landlord shall not be liable
for any breach of covenant during the Term unless the same shall occur during
and within the period of time that it is the owner of and in possession of
Landlord’s Property. In no event and under no circumstances shall Landlord be
liable to Tenant for any consequential damages in connection with any act of
Landlord, its agents or servants. The placement by Tenant of any goods, wares
and merchandise in the Premises or any areas within Landlord’s Property shall
be at the sole risk and hazard of Tenant. Notwithstanding anything to the
contrary contained in this Lease, it is specifically understood and agreed that
the monetary liability of Landlord hereunder shall be limited to its equity in
the Premises in the event of a default under this Lease by Landlord. In
furtherance of the foregoing, Tenant hereby agrees that any judgment it may
obtain against Landlord as a result of a breach of any of the terms, covenants
or conditions hereof shall be enforceable solely against Landlord’s fee interest
in the Premises.

24.                                   FORCE MAJEURE

In any case where either
party is required to do any act, the time for the performance thereof shall be
extended by a period equal to any delay caused by or resulting from Acts of
God, war, civil commotion, fire or other casualty, labor difficulties, shortage
of labor, materials or equipment, governmental regulations, or other causes
beyond such party’s reasonable control, whether such times are designated by a
fixed time or a “reasonable time” This clause shall not be applicable to any
payment of rent or other charges due from Tenant to Landlord.

25.                                   MECHANICS LIENS

The Tenant shall not permit
any mechanics’ or material men’s or other liens to stand against the Premises,
the Building or Landlord’s Property for any labor or materials furnished Tenant
in connection with work of any character performed on the Premise by, for, or
at the direction of Tenant. Any such lien shall be discharged by payment in
full within then (10) business days thereafter or by filing of the bond
required by law. If Tenant 

fails to discharge any such
lien, Landlord may do so at Tenant’s expense and Tenant shall reimburse
Landlord for any expense or cost incurred by Landlord in connection therewith,
within fifteen (15) business days of receipt of Landlord’s bill therefore.

26.                                   ESTOPPEL CERTIFICATE(S)

Tenant shall, at any time
during the Term, within ten (10) days after Landlord’s request therefore,
delivery a duly executed and acknowledge written instrument to Landlord to a
person or entity specified by Landlord in a form reasonably satisfactory to
Landlord certifying  to the extent
accurate:

a.     That the Lease is unmodified and in full
force and effect, or, if there has been any modification, that the same is in
full force and effect, as modified and stating any such modification;

b.     Whether or not there are any existing
setoffs or defenses against the enforcement of any of the terms, agreements,
covenants and conditions of the Lease and any modifications thereof on the part
of Tenant to be performed or complied with, and if so, specifying the same; and

c.     The date to which Fixed Rent and all
additional rent and other charges have been paid.

It is intended that any estoppel certificates delivered by
Tenant pursuant to this Article may be relied upon by any other party with whom
Landlord may be dealing.

The failure by Tenant to deliver timely the estoppel
certificates shall constitute as to any person entitle to rely upon such
statements an acknowledgment that the Lease is unmodified and in full force and
effect and a waiver of any defaults which may exist prior to the date of such
notice. In the event of such failure, Tenant also authorizes Landlord to act as
Tenant’s attorney-in-fact to prepare and deliver such certificate on Tenant’s
behalf, and Tenant shall be deemed bound thereby to the party to whom such
certificate is sent, upon Landlord’s furnishing a copy of the certificate to
Tenant.

27.                                   DEFINITIONS

The words “Landlord” and “Tenant”
as used herein shall include their respective heirs, executors, administrators,
successors, representatives, assigns, invitees, agents, and servants. The words
“it”, “he” and “him” where applicable apply to the Landlord or Tenant
regardless of gender, number, corporate entity, trust or other body. If more
than one party signs this Lease as Tenant, the covenants, conditions and
agreements of Tenant shall be joint and several obligations of each party.

28.                                   SEPARABILITY CLAUSE

If any provision in this
Lease (or portion of such provision) or the application thereof to any person
or circumstance is held invalid, the remainder of the Lease (or the remainder
of such provision) and the application thereof to other persons or
circumstances shall not be affected thereby.

This
Lease may be executed in any number of counterparts and each fully executed
counterpart shall be deemed an original.

29.                                   NOTICES

Any notices required under
this lease shall be in writing and delivered by hand or mailed by registered or
certified mail to Tenant at the Premises or to Landlord care of its Management
Agent, Creative Development Co., 77 Franklin Street, Boston, Massachusetts
02110. Landlord or Tenant may, by proper notice to the other as provided
herein, change its notice address.

30.                                   HOLDING OVER

If for any reason Tenant
retains possession of the Premises or any part thereof after the termination of
the Term or any extension thereof, such holding over shall constitute a tenancy
from month to month, terminable by either party upon thirty (30) days prior
written notice to the other party, and Tenant shall pay Landlord monthly rental
during the month to month tenancy computed as the rent (including Fixed Rent
and all additional rent) payable hereunder for the final month 

of the last year of the Term
prior to such holding over plus one hundred (1 00%) percent of said rent. The
month-to-month tenancy shall otherwise be on the same terms and conditions as
set forth in the Lease, as far as applicable.

31.                                   HAZARDOUS WASTE

Tenant shall not generate,
store or spill upon, dispose of or transfer to or from the Premises or Landlord’s
Property, any hazardous waste materials in violation of applicable City, State
or Federal laws. Any such actions shall be a default hereunder.

Tenant agrees that if it or
anyone claiming under it shall generate, store or spill upon, dispose of our
transfer to and from the Premises or Landlord’s Property any hazardous waste
materials, it shall remove the same in the manner provided by applicable laws
(federal, state and local) and the rules and regulations promulgated there
under (hereinafter such laws, rules and regulations shall be referred to as ‘‘Laws’’).
Furthermore, Tenant shall repair and restore any portion of the Premises and
Landlord’s Property, which it shall disturb in removing said hazardous waste
materials to the condition, which existed prior to Tenant’s disturbance
thereof.

For purposes of this
Article, “hazardous waste materials” shall be deemed to be any materials
defined as such by any Law applicable to Landlord’s Property. Tenant shall
dispose of any hazardous waste hereunder within the earlier of:

a.               within the time periods specified by Law; or

b.              within the time period ordered by any
governmental agency or official.

If
Tenant fails to perform any such obligation, Landlord shall have the right, but
not the obligation, to enter upon the Premises and to perform Tenant’s
obligations hereunder, including the payment of money and the performance of
any other act. All sum s so paid by landlord and all necessary incidental costs
and expenses in connection therewith shall be paid by Tenant to Landlord on
demand as additional rent hereunder, and Landlord shall have the same rights
and remedies for the non-payment thereof as for the non-payment of rent.
Notwithstanding any such re-entry by Landlord, Tenant shall remain primarily
liable for any violation of any applicable Laws, and Tenant shall indemnify and
hold Landlord harmless from and against all injury, loss claim or damage in
connection therewith.

Landlord
and Tenant mutually agree to promptly deliver to the other any notices, orders
or similar documents received from any governmental agency or official
concerning hazardous waste materials affecting Landlord’s Property.

The obligations of Tenant contained herein shall survive the expiration
or termination of the Lease.

32.                                   GOVERNING LAW

This Lease shall be governed
exclusively by the provisions hereof and by the laws of the Commonwealth of
Massachusetts, as the same may from time to time exist.

33.                                   LEASE AMENDMENTS

Tenant acknowledges that
amendments to this Lease may be required in connection with the financing of
Landlord’s Property and Tenant hereby agrees that it will enter into any
reasonable modifications requested by a mortgage in connection with such
financing, provided the same do not (a) increase the Fixed Rent or additional
rents payable to Tenant or increase Tenant’s financial obligations hereunder;
(b) reduce or extend the Term hereof except as otherwise provided in this
Lease; (c) change the Permitted Use; or (d) materially effect the rights and
obligations of Tenant hereunder.

34.                                   BROKERAGE

Tenant warrants and
represents that it has dealt with NO broker in
connection with the consummation of this Lease and in the event a brokerage
claim is made against Landlord predicated upon other prior dealings with
Tenant, Tenant shall defend the claim against Landlord and save harmless and
indemnify Landlord on account of loss, cost or damage which may arise by reason
of such claim.  Landlord warrants and
represents that it has not entered into any exclusive listing so-called or
other brokerage agreement that would require the payment of a brokerage fee.

35.                                   WAIVER OF COUNTERCLAIMS

In the event Landlord
commences any proceedings for nonpayment of rent (Fixed Rent or additional
rent) or for recovering possession of the Premises, Tenant will not interpose
any counterclaim of whatever nature or description in any such proceeding
except for compulsory counterclaims. This shall not, however, be construed as a
waiver of the Tenant’s right to assert such claims in any separate action or
actions brought by Tenant.

36.                                   OPTION TO EXTEND

Tenant shall have the option
to extend this lease for two additional terms each consisting of a period of
two (2) years provided that there has been no approved assignment of this Lease
on the same terms and conditions provided herein except that:

a.             The annual Fixed Rent for the term of the 1st extension period shall be Four
Hundred Twenty Two Thousand Two Hundred Eighty Seven ($422,287.00) Dollars
payable in equal monthly installments of $35,190.59 ($13/SQFT for 31,712 SQFT
on 1st and 2nd floors of 30 Ossipee Road,
$4.50/SQFT for the Basement Space, and $13/SQFT for 192 SQFT for the Chestnut
Street Space.

b.        The annual Fixed Rent for the term of
the 2nd extension period shall be Four Hundred Fifty Five Thousand Seventy
Eight ($456,626.00) Dollars payable in equal monthly installments of $37,923.17
($14/SQFT for 31,712 SQFT on 1st and 2nd floors of 30 Ossipee Road and $5/SQFT for the
Basement Space, and $14/SQFT for 192 SQFT for the Chestnut Street Space.

Tenant’s right to exercise
the extension option is conditioned upon Tenant’s performance of all of the
duties and obligations on its part to be performed under this Lease so that, at
the time of the exercise of said option, Tenant shall not be in default
hereunder.

Tenant shall exercise its
option to extend by giving written notice thereof to Landlord by certified
mail, return receipt requested, no earlier than fifteen (15) months before and
no later than sixty (60) days before the expiration of the existing Term or any
extension thereof.

37.                                               LANDLORD’S TITLE

Landlord represents that it
has good and clear, record and marketable title to Landlord’s Property, subject
to encumbrances of record.

38.                                               PRIOR LEASE.  

This Lease shall supersede
and replace the prior Lease between Landlord and Tenant dated May 23, 1997, as
amended by Lease Amendment and Modification Agreement dated October 19,
2001.  Landlord acknowledges that Tenant
has fulfilled all of its obligations under said Lease as amended.

Signatures on following page

IN WITNESS WHEREOF, the
parties hereunto set their hands and seals as of November    , 2006.

	
  TENANT:

  	
   

  	
  LANDLORD:

  
	
  MFIC
  Corporation

  	
   

  	
  King Real Estate Corp as

  
	
   

  	
   

  	
  Trustee of

  
	
   

  	
   

  	
  1238 Chestnut Street Trust

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Irwin
  Gruverman

  	
   

  	
   

  	
  By:

  	
  /s/ John H. Finley, III

  	
   

  
	
  Irwin
  Gruverman,

  	
   

  	
  John H. Finley, III,

  
	
  CEO
  & Chairman,

  	
   

  	
  Vice President and Treasurer,

  
	
  MFIC
  Corporation

  	
   

  	
  King Real Estate Corp.Exhibit
10.70

TD Banknorth, N.A.

17 New England Executive
Park

2nd Floor

Burlington, MA 01803

TDBanknorth.com

November 20, 2006

Microfluidics Corporation as Agent

30 Ossipee Road

Newton, MA 02464-9101

Attn: Dennis P. Riordan,
Controller

Re:                               Loan
and Security Agreement (All Assets) dated as of March 3, 2004 (the “Loan Agreement”) between and among MFIC Corporation, a
Delaware Corporation (“MFIC”) and
Microfluidics Corporation, a Delaware Corporation (“Microfluidics”)
(MFIC and Microfluidics are hereafter collectively referred to as the “Borrower”) and TD Banknorth N.A. (formerly known as
Banknorth N.A. the “Lender”) and
Related Documents (the “Transaction Documents”)

Gentlemen:

Reference is made
to the Loan Agreement between the Borrower and the Lender and the Transaction
Documents. The Agreement is hereby amended, effective immediately as follows:

Section 1.01 the
term for “Debt Service Coverage Ratio” is hereby
deleted in its entirety and the following new terms substituted therefore, as
follows:

“Debt Service Coverage Ratio” shall mean,
during the applicable period, that quotient equal to (a) EBITDA of the Borrower
plus Share Based Compensation minus distributions minus Cash Taxes of the
Borrower, divided by fixed charges of the Borrower, that is,

EBITDA + Share
Based Compensation - distributions - Cash Taxes

Fixed Charges

“EBITDA” shall mean, for the applicable period,
income from continuing operations before the payment of interest and taxes,
plus depreciation and amortization, determined in accordance with generally
accepted accounting principles.

“Share Based Compensation” shall mean, during
the applicable period, the non cash expense relating to options granted to
employees and others as detailed in the Borrower’s condensed consolidated
statements of cash flows from operating activities, determined in accordance
with generally accepted accounting principles.

“Cash Taxes” shall mean, during the applicable
period, those taxes actually paid by the Borrower.

Nothing contained
herein, nor shall any correspondence between the Borrower and the Bank alter or
impair the demand nature of the Borrower’s Obligations to the Bank under the
Loan Agreement.

Except as
specifically amended hereby, the Loan Agreement remains in full force and
effect and the Borrower reaffirms all representations and warranties contained
therein, as of the date hereof.

Please acknowledge
your assent and agreement to the foregoing by signing this letter in the space
provided and returning it to the undersigned, whereupon it shall take effect as
an instrument under seal.

	
  

  	
   

  	
  Very truly yours,

  
	
   

  	
   

  	
  TD BANKNORTH, N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Brant A.
  McDougall

  
	
   

  	
   

  	
  Brant A. McDougall, Senior Vice President

  

 

	
  ACKNOWLEDGED AND AGREED TO:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  MFIC Corporation

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Irwin J. Gruverman

  	
   

  	
   

  
	
   

  	
  Irwin J. Gruverman, Chairman and CEO

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  12/07/06

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Microfluidics Corporation

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Irwin J. Gruverman

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  12/07/06

  	
   

  	
   

  
					

 

 2

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