Document:

InfoTech USA, Inc. Exhibit 10.1 to Form 8K

Exhibit 10.1

SETTLEMENT AGREEMENT
AND GENERAL RELEASE 

RECITALS 

        WHEREAS,
Anat Ebenstein (hereinafter referred to as “Releasor” or “Plaintiff’),
having filed a Complaint in the Superior Court of New Jersey, Law Division, Mercer County
entitled Anat Ebenstein v. SysComm International Corporation, Applied Digital
Solutions, Inc., Jerome Artiglieri, Richard Sullivan, Scott Silverman and Kevin
McLaughlin, Docket No. MER-L-3361-02, asserting claims arising out of and relating to
plaintiff’s employment with SysComm International Corp. and the termination thereof,
and 

        WHEREAS,
the parties seek to settle all disputes between them, and 

        WHEREAS, SysComm
International Corp. (now InfoTech International, Inc. (“InfoTech”)), Applied
Digital Solutions, Inc. (“ADS”), Jerome Artigliere (incorrectly named in the
complaint Jerome Artiglieri), Richard Sullivan, Scott Silverman, and Kevin McLaughlin, the
defendants in the above-referenced matter, believe they acted lawfully and properly in all
respects, but want to avoid the legal fees and expenses that necessarily will result from
further litigating this action, and 

        WHEREAS,
plaintiff has been advised in writing to consult with an attorney prior to executing this
Settlement Agreement and General Release (“Agreement”) and has had an adequate
opportunity within which to consider this Agreement, and 

        WHEREAS,
defendants and plaintiff, who have received independent legal advice in this matter, wish
to settle this matter in a manner that will obviate the need for further litigation of
this action and that will preclude the bringing of any other claim, cause, proceeding or
action against defendants, by providing plaintiff with an amount of money that will
recompense plaintiff for any and all of her claims, costs and attorneys’ fees; 

1

AGREEMENT 

        NOW,
THEREFORE, SysComm International Corp. (a/k/a InfoTech), Applied Digital Solutions, Inc.,
Jerome Artigliere, Richard Sullivan, Scott Silverman, and Kevin McLaughlin and Releasor
agree as follows: 

GENERAL RELEASE 

             1.    
          Releasor, for and in consideration of the payment of monies set forth herein,
          does hereby irrevocably and unconditionally release and forever discharge and by
          these presents does for herself, her heirs, executors, administrators,
          representatives, successors and assigns (hereinafter collectively referred to as
          the “Releasing Parties”), release and forever discharge SysComm
          International Corp. (a/k/a InfoTech) and Applied Digital Solutions, Inc., its
          predecessors, successors, assigns, representatives, parents, subsidiaries,
          divisions, affiliates and all related companies and its present and former
          officers, agents, directors, supervisors, attorneys, employees (including, but
          not limited to, Jerome Artigliere, Richard Sullivan, Scott Silverman, and Kevin
          McLaughlin), and stockholders (collectively referred to as the “Company
          Releasees”); National Union Fire Insurance Company of Pittsburgh, Pa.
          (“National Union”) its predecessors, successors, assigns,
          representatives, parents, subsidiaries, divisions, affiliates and all related
          companies and its present and former officers, agents, directors, supervisors,
          employees, stockholders, including attorneys and reinsurers; and each and any
          one of them and their heirs, executors, administrators, successors and assigns,
          and all persons acting by, through, under or in concert with any of them
          (hereinafter referred to collectively as the “Releasees”) of and from
          all manner of action and actions, cause and causes of action, suits, claims,
          debts, sums of money, accounts, reckonings, bonds, bills, claims for
          attorneys’ fees, interest, expenses and costs, specialties, covenants,
          contracts, controversies, agreements, promises, variances, trespasses, damages,
          judgments, executions, claims 

2

      and demands of any nature whatsoever, known or
          unknown, suspected or unsuspected, in law or in equity, civil or criminal,
          vested or contingent, which against the Releasees the Releasing Parties ever
          had, now has or asserts or executors, hereafter can, shall or may have or may
          assert, for, upon or by reason of any matter, cause or thing whatsoever from the
          beginning of the world to the date hereof, it being the intention herein to
          release the Releasees from any and all claims of any and every nature, whether
          known or unknown, up to the date of this Agreement, unrestricted in any way by
          the nature of the claim including, though not by way of limitation, all matters
          which were asserted or could have been asserted in all actions or claims
          identified above or any matter based upon, arising out of, directly or
          indirectly, Releasor’s employment with Applied Digital Solutions, Inc. and
          the termination thereof, her relationship with any of her supervisors and any
          other state or federal statutory, constitutional, or common law claims,
          including, but not limited to, all “public policy” claims, all claims
          for breach of contract or implied contract, all claims for benefits (except
          vested benefits), all claims under the Age Discrimination in Employment Act, as
          amended by the Older Workers Benefit Protection Act, 29 U.S.C. §621,
          et seq., the Employee Retirement Income Security Act of 1974, 29
          U.S.C. §1001, et seq., the Family and Medical Leave Act of
          1993, 29 U.S.C. §2601 et seq., Title VII of the Civil Rights
          Act of 1964, 42 U.S.C. §2000e, et seq., as amended, the
          Americans With Disabilities Act, 42 U.S.C. §12101, et seq.,
          the Fair Labor Standards Act, 29 U.S.C. §201 et seq. the
          Rehabilitation Act of 1973, 29 U.S.C. §701 et seq., Executive
          Orders 11246 or 11141, the Worker Adjustment and Retraining Notification Act, 29
          U.S.C. §2101 et seq., the Conscientious Employee Protection
          Act, N.J.S.A. 34:19-1, et seq., the New Jersey Law Against
          Discrimination, N.J.S.A. 10:5-1, et seq., and the New Jersey
          Family Leave Act, N.J.S.A. 34:11B-1, et seq. 

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CONSIDERATION 

             2.    
          Releasing Parties further understand and agree that the Agreement is made
          conditional upon receipt by Releasees’ counsel of a fully executed copy of
          this document from Releasor and that payment shall be made under this Agreement
          by Releasees no later than twenty-

     one days after Releasees’ counsel shall
          have received from counsel for Releasor a fully executed Stipulation of
          Dismissal with prejudice in the form attached hereto (but in no event shall
          payment be made before December 15, 2004). As additional consideration for this
          Agreement, Releasees shall forgive the Twenty Thousand Dollar ($20,000) loan
          made by SysComm International Corp., now InfoTech, to Releasor. Such loan
          forgiveness will be reported on an IRS Form 1099 to Anat Ebenstein. Payment
          under this Agreement shall be in the form of: 

               		
                   (1)        
                     an annuity (as described in attachment A) for Releasor’s alleged physical
                    injury pain, suffering and emotional distress. In the event the conditions of
                    payment are not completed by December 9, 2004, the payment terms of the annuity
                    may adjust, since the quote provided by the annuity company is valid for a
                    specified period of time. In such event, the $300,000 provided to fund the
                    annuity will remain constant, however; and 

                    

               		(2)        
                   two checks in the aggregate amount of Three Hundred Thousand Dollars
                    ($300,000.00), subject to all applicable federal and state withholding taxes
                    (hereinafter referred to as the “Payment”). The first check shall be
                    in the gross amount of $100,000.00 (less withholdings and reported on a form
                    W-2), shall be issued by InfoTech, in payment for alleged lost wages, and shall
                    

                    

4

               		
                    be made payable to “Anat Ebenstein.” The second check shall be in the
                    amount of $200,000.00 which shall be issued by National Union and made payable
                    to “Spector, Gordon & Rosen, P.C.” This payment will be reported
                    on a Form 1099 to or by Spector, Gordon & Rosen, P.C. 

                    

Payment under this Agreement and the
loan forgiveness specified in this paragraph are intended by the mutual agreement of the
parties to be full consideration for the promises made herein including, but not limited
to, the releases in section 1 above. 

TAXES AND
INDEMNIFICATION 

             3.    
          Releasing Parties acknowledge and agree that InfoTech, Applied Digital
          Solutions, Inc., and National Union make no representations of any kind as to
          the income tax or other tax consequences of this payment provided, however, that
          InfoTech and Applied Digital Solutions, Inc. represents that their tax treatment
          of this payment will be consistent with the language above, and further
          acknowledge and agree that Releasing Parties are responsible for the payment of
          all taxes that are owing or may subsequently be determined by any appropriate
          taxing authority to be owing from either Releasing Parties or Releasees in
          connection with this payment. Releasing Parties hereby agree to indemnify and
          hold InfoTech, Applied Digital Solutions, Inc., and National Union harmless from
          and against any and all loss, cost, expenses (including reasonable
          attorney’s fees), interest, payments or penalties incurred by InfoTech,
          Applied Digital Solutions, Inc., or National Union on account of Releasing
          Parties’ failure to pay tax properly payable by them. Releasing Parties
          further agree not to seek payment from or make any claim against InfoTech,
          Applied Digital Solutions, Inc., or National Union for any loss, cost, damage or
          expenses if a claim or adverse determination is made in connection with the tax
          treatment of said payment. Releasing Parties 

5

     understand and agree that InfoTech,
          Applied Digital Solutions, Inc., and National Union have no duty to defend
          against any claim or assertion in connection with Releasing Parties’ tax
          treatment of the proceeds of this payment, and Releasing Parties agree to assume
          full responsibility for defending against any such claim or assertion. 

             4.    
          Releasing Parties further agree and warrant that the payments provided for by
          this Agreement exceed anything of value to which Releasing Parties would
          otherwise be entitled under any of Releasees’ policies, plans, practices
          and/or procedures, or pursuant to any prior agreement or contract with
          Releasees. 

             5.    
          Except as expressly provided or referenced in this Agreement and Release,
          Releasing Parties understand and acknowledge that they are not entitled to any
          other payment or reimbursement from Releasees of any type, kind or description
          including, without limitation, salary, severance, bonus, other distribution,
          notice, vacation, holiday, medical, dental, life insurance or other benefits,
          annuity or other contributions or expenses, and that no representations have
          been made to them to the contrary. 

NON-ADMISSION OF
LIABILITY 

             6.    
          Releasing Parties further understand and agree that the payment of monies and
          other consideration herein set forth does not constitute an admission of
          liability or violation of any applicable law, any contract provision or any rule
          or regulation, as to which Releasees expressly deny any such liability or
          violation. 

WAIVER OF REEMPLOYMENT 

             7.    
          Releasing Parties further understand and agree that the Company Releasees, and
          any company, business or other entity owned or operated by them or related to
          them, shall not be under any obligation to reinstate Releasor as an employee or
          to consider her for employment or

6

      re-employment, and Releasing Parties waive any
          claim or entitlement to such reinstatement which is denied. Releasing Parties
          agree that if Releasor is subsequently employed by the Company Releasees, or
          retained by the Company Releasees in any capacity including as an independent
          contractor or consultant, she shall promptly and voluntarily resign and this
          Agreement constitutes good and sufficient reason not to reemploy Releasor and to
          terminate their employment relationship should Releasor inadvertently be
          re-hired. Releasor agrees not to apply for employment, either permanent or
          temporary, with the Company Releasees, and agrees not to solicit work from the Company Releasees and understands that such application or solicitation is a
          material breach of this Agreement. 

NON-COMPETITION AND
NON-SOLICITATION 

             8.    
          Releasing Parties further agree that for the duration of one year from
          Releasor’s execution of this Agreement, she shall not directly or
          indirectly, through any other person, firm, corporation or other entity: 

                    (a)    
          solicit, induce, encourage or attempt to induce or encourage any employee of the
          Company Releasees to terminate his or her employment with the Company Releasees
          or to breach any other obligation of the Company Releasees; or 

                    (b)    
          solicit, interfere with, disrupt, alter or attempt to disrupt or alter the
          relationship, contractual or otherwise, between the Company Releasees and any
          current customer or supplier of the Company Releasees. 

NON-DISPARAGEMENT 

             9.    
          Releasing Parties further agree that they shall not make any disparaging
          comments or statements to the press, to present or former employees of the
          Company Releasees, to any individual or entity with whom or which the Company
          Releasees have a business relationship, or 

7

     to others, which could affect
          adversely the conduct of the Company Releasees’ business or reputation. 

             10.    
          The Company Releasees agree that they will only disclose plaintiff’s dates
          of employment and job title, unless authorized in writing by plaintiff to
          furnish additional information, when asked by prospective employers about
          plaintiff’s employment with SysComm International Corp. (a/k/a InfoTech)
          and termination thereof. 

WITHDRAWAL OF ALL
CLAIMS 

             11.    
          Releasing Parties represent and agree that they have withdrawn any other
          complaint, charges, or grievances against Releasees filed with any local, state
          or federal agency or court, that 

     Releasing Parties will not file any other at
          any time hereafter, and that if any such agency assumes jurisdiction of any such
          complaint, charge or grievance against Releasees on behalf of Releasing Parties,
          Releasing Parties will direct that agency to withdraw from the matter. Releasing
          Parties further waive any right to monetary relief from Releasees through any
          such agency. 

             12.    
          Releasing Parties will not voluntarily cooperate or participate in the
          investigation or prosecution of any action against Releasees unless specifically
          subpoenaed to appear or otherwise required by court order or in an official
          governmental (state or federal) investigation. To the extent Releasing Parties
          are compelled to testify in such a proceeding, Releasing Parties agree that they
          will not disclose under any circumstances the nature or terms of the lawsuit,
          the settlement (including the amount and the fact that there was a settlement)
          or this Agreement. Nor will Releasing Parties in any manner solicit any former,
          current or future employee of Releasees to pursue claims against Releasees. 

8

ACKNOWLEDGEMENTS 

             13.    
          Releasing Parties represent and acknowledge that in executing this Agreement
          they do not rely and have not relied upon any representation or statement made
          by any of the Releasees, or by any of the Releasees’ agents,
          representatives or attorneys, with regard to the subject matter, basis or effect
          of this Agreement or otherwise, other than as specifically stated in this
          written Agreement. 

             14.    
          Releasing Parties further understand and agree that this Agreement may be
          revoked at any time within seven days after execution of this Agreement and that
          no payment shall be made under this Agreement until the expiration of that
          period. 

             15.    
          Releasing Parties further declare that in making this Agreement they rely
          entirely upon their own judgment, beliefs and interests and the advice of their
          counsel and that they have been afforded a reasonable period of at least
          twenty-one days in which to consider this Agreement or has waived that
          twenty-one day requirement. 

CONTROLLING LAW/JOINT
PRODUCT 

             16.    
          This Agreement is made and entered into in the State of New Jersey and shall in
          all respects be interpreted, enforced, and governed under the laws of said
          state. The parties acknowledge that this Agreement is a joint product and shall
          not be construed for or against any party on the ground of sole authorship. 

MISCELLANEOUS 

             17.    
          Should any provision of this Agreement be declared or be determined by any court
          of competent jurisdiction to be illegal, invalid or unenforceable, the legality,
          validity and enforceability of the remaining parts, terms or provisions shall
          not be affected thereby and said

9

     illegal, unenforceable or invalid part, term or
          provision shall be deemed not to be part of this Agreement. 

             18.    
          No provisions of this Agreement may be modified, altered, waived or discharged
          unless such modification, alteration, waiver or discharge is agreed to in
          writing and signed by the parties hereto. No waiver by either party hereto of or
          compliance with, any condition or provision of this Agreement to be performed by
          such other shall be deemed a waiver of similar or dissimilar provisions or
          conditions at the same or at any prior or subsequent time. 

             19.    
          This Agreement sets forth the entire agreement between the parties hereto and
          fully supersedes any and all prior agreements or understandings, written or
          oral, between the parties hereto pertaining to the subject matter hereof. 

        YOU
EXPRESSLY ACKNOWLEDGE, REPRESENT, AND WARRANT THAT YOU HAVE READ THIS AGREEMENT CAREFULLY;
THAT YOU FULLY UNDERSTAND THE TERMS, CONDITIONS, AND SIGNIFICANCE OF THIS AGREEMENT; THAT
YOU HAVE BEEN ADVISED TO CONSULT WITH AN ATTORNEY CONCERNING THIS AGREEMENT; THAT 

     YOU HAVE
HAD A FULL OPPORTUNITY TO REVIEW THIS AGREEMENT WITH AN ATTORNEY; THAT YOU UNDERSTAND THAT
THIS AGREEMENT HAS BINDING LEGAL EFFECT; AND THAT YOU HAVE EXECUTED THIS AGREEMENT FREELY,
KNOWINGLY AND VOLUNTARILY. 

             
PLEASE READ CAREFULLY.  THIS AGREEMENT HAS IMPORTANT LEGAL CONSEQUENCES.

	  	APPLIED DIGITAL SOLUTIONS, INC. 

	Dated: 	  
 	By: 	  /s/ Michael Krawitz
 

		Title:	  EVP
 

10

	  	INFOTECH INTERNATIONAL, INC.
(F/K/A SYSCOM INTERNATIONAL CORPORATION) 

	Dated: 	  3/18/05
 	By: 	  /s/ S. F. Perez
 

		Title:	 President
 

	Dated: 	  3-3-05
 	By: 	  /s/ Anat Ebenstein
 

			  ANAT EBENSTEIN

	STATE OF NEW JERSEY 	) 	  
	 	)  SS. 	  
	COUNTY OF MERCER   	) 	  

        On
the 3rd day of March, 2005, before me personally came Anat Ebenstein, to me
known to be the person described in, and who executed the foregoing instrument, and
acknowledged that she executed the same. 

	   /s/ Adam Jacobs 
 	  
	   NOTARY PUBLIC 	  

	[Notary Seal]	  

11InfoTech USA, Inc. Exhibit 10.2 to Form 8K

Exhibit 10.2

OFFICE LEASE 

	  	BUILDING: 	7 Kingsbridge
Road, Fairfield, NJ 	  

	  	LANDLORD: 	Faircorp
Associates, LLC  	  

	  	TENANT: 	Infotech, Inc. 	  

	  	DATE: 	 April 16, 2005  	  

	  	Suite No. 	100  	  

OFFICE LEASE 

             This  Lease,  dated  for  reference  purposes  only  March____,  2005,  is  made  by and  between  Faircorp  Associates,  LLC,
("Landlord"), and Infotech, Inc., ("Tenant").

	1. 
	CERTAIN LEASE
PROVISIONS  

             The
description and amounts set forth below are qualified by their usage elsewhere in this
Lease, including those Sections referred to in parentheses following such descriptions: 

	1.1 
	Tenant's address and telephone number.  (Section 19):

	  	Tenant Name: 	Infotech, Inc. 

	  	Address: 	7 Kingsbridge Road, Fairfield, NJ 

	  	Telephone:  	 973-227-8772 

	  	Facsimile: 	 

	1.2 
	Premises.  (Section 2.1):

	  	Suite No. 	100 

	  	Building Address: 	7 Kingsbridge Road, Fairfield, NJ 

	1.3 
	Leased Area. (Section
2.1): 

	 
	Approximately
9,660 Usable square feet plus an additional 5% for common area for a total of 10,143
rentable square feet.

	1.4 
	Total Building Area.  (Section 2.1): 19,723 rentable square feet. 

	1.5 
	Tenant's Pro-Rata Share of Building Area.  (Section 2.1): 49%

	1.6 
	 Lease Term. (Section
3.1): Five years 

	1.7 
	Rent Commencement Date.  (Section 3.1):
The earlier of: January 1, 2006 or the termination date of the sublease between Tenant
and Sungard.

	1.8 
	Expiration Date.  (Section 3.1, 3.2):  December 31, 2010

Base Rent for Lease Term (exclusive
of electricity and other utility charges) (Section 4.1): 

	TERM	 	MONTHLY
BASE RENT	 	ANNUAL
BASE RENT	 	PER
SQ. FT	.
	1/1/2006 - 12/31/2010	 	$12,678.75.00	 	$152,145.00		$15.00	

	1st months rent to be
submitted upon execution of the lease.  

	1.9 
	Option To Renew:     Section 22

	1.10 
	OMITTED

	1.11 
	(a) Address of Landlord for rent payments  (Sections 4.1, 4.2):

	  
	Faircorp
Associates, LLC
c/o Hudson Equities Management Corp.
115
Christopher Columbus Drive, Jersey City, NJ 07302

     		
          (b) Address of Landlord for notices. (Sections 6.3, 19):
 Same as 1.11a; and
          with a copy to:
Harry J. Reidler, Attorney at Law, 263 Hutchinson Road, Englewood, NJ 07631; (201) 567-0797; fax
(201) 871-4847  

          

     		
          (c) Address of Tenant for notices (Sections 6.3, 19): 

          

	1.12 
	OMITTED

	1.13 
	OMITTED

	1.14 
	Landlord’s
Share of Operating Expenses. (Section 6.2): 
2004
Base Year Operating Expenses per rentable square foot per year, hereby determined to be
$4.50/ft. (In that the lease does not start until 2006 this will be adjusted to
2006. 

-2-

	1.15 
	Landlord's Share of Real Estate Taxes.  (Section 6.2):
2004 Base Year Real Estate Taxes hereby determined to be $1.38/ft.

	1.16 
	Electricity. (Section 6.4):
Initial cost per foot shall be $1.50. The initial monthly installment shall be $1,207.50

	1.17 
	Security Deposit.  (Section 7): $24,000.00 to be submitted by December 1, 2005.

	1.18 
	 Use.  (Section 8.1):  Standard office use and computer repair and assembly

	1.19 
	 Brokers. (Section
25.20):

	1.20 
	Prepaid Rent.  NONE.

	1.21 
	Guarantor:

	1.22 
	OMITTED

	1.22 
	Addendum(s).  (Sections 3.2, 4.3, 9.2, 22):  The following addendum(s) are attached to this Lease:  NONE.

This Lease consists of _____ articles
on _____ pages, plus Exhibits A, B, C, and D. 

	Faircorp Associates, LLC  	Infotech USA, Inc., Tenant 

	By: 			

	By: 	 /s/ Ephraim Hasenfeld 
 	By: 	 /s/ J. Robert Patterson 
 
		Ephraim Hasenfeld, Member 		

	Date:	  4/14/05
 	Date:	  4/14/05
 

-3-

	2. 
	PREMISES. 

	  	
2.1     
Definition. Landlord hereby leases to Tenant and Tenant leases from Landlord for
the term, at the rental, and upon all of the conditions set forth herein, that certain
real property known by suite number and address specified in Section 1.2 hereof,
consisting of the approximate amount of rentable square feet specified in Section 1.3
hereof, and which is referred to herein as the Premises. The Premises are located in an
office building presently consisting of the total number of rentable square feet specified
in Section 1.4 hereof, which office building, the real property on which it is situated
(the legal description of which is attached hereto as Exhibit A), and any parking
facilities or structures appurtenant thereto are hereinafter collectively referred to as
the “Building”. The Premises are depicted in Exhibit B attached hereto and
incorporated herein by this reference, but the depiction of possible uses, tenants or
locations on Exhibit B shall not be construed to be a warranty or representation by
Landlord that any such uses, tenants or locations presently exist or will continue to
exist. Tenant’s share of the total amount of square feet of the Building is equal to
the pro-rata share specified in Section 1.5 hereof, and said percentage shall hereinafter
be referred to as the Tenant’s “Pro-Rata Share”. 

	 
	2.2     
OMITTED

	  	
2.3     
Public Areas. As long as this Lease remains in effect and Tenant is not in default
hereunder, Tenant shall have the nonexclusive right, in common with the Landlord, other
tenants, subtenants and invitees, to use the public areas of the Building which consist of
the entrance foyer and lobby of the Building, the common corridors on the floor of the
Building on which the Premises are situated and other areas appurtenant to or servicing
the elevators, shipping and receiving areas and lavatories in the Building, provided that
Landlord shall have the right at any time and from time to time to exclude therefrom such
areas as Landlord may determine so long as access to the Premises is not unreasonably
denied. 

	3. 
	TERM. 

	  	
3.1     
Term. The term of this Lease shall be the term specified in Section 1.6 hereof,
commencing on the Commencement Date specified in Section 1.7 hereof and ending on the
Expiration Date specified in Section 1.8 hereof unless sooner terminated pursuant to any
provision of this Lease. 

	  	
3.2     
Delay in Commencement. Notwithstanding said Commencement Date, if for any reason
Landlord cannot deliver possession of the Premises to Tenant on said date, Landlord shall
not be subject to any liability therefor, nor shall such failure affect the validity of
this Lease or the obligations of Tenant hereunder. However, in such case Tenant shall not
be obligated to pay rent until possession of the Premises is tendered to Tenant, which
date shall be the new Commencement Date, and the Expiration Date shall be adjusted to
reflect the term listed in 1.6. Upon Landlord’s request, the parties agree to execute
in writing an Addendum to certify the Commencement Date and Expiration Date hereof, but
this Lease shall not be affected in any manner if either party fails or refuses to execute
such Addendum. 

	  	
3.3     
Prior to the  Commencement  Date,  Landlord at its cost and expense shall do the work set forth in Exhibit C attached hereto.

	  	
3.4     
OMITTED.

	  	
3.5     
Holding Over. If Tenant remains in possession of the Premises or any part thereof
after the expiration date specified in Section 1.8, such occupancy shall be a tenancy from
month to month at a monthly rental equal to one hundred fifty percent (150%) of the Base
Rent and Additional Rent payable hereunder. The foregoing provisions of this Section 3.5
shall neither be construed to give the Tenant any right to remain in possession of the
Premises or any part thereof after the expiration of the term hereof nor to waive any of
the Landlord’s rights under this Lease to collect any damages to which it may be
entitled, whether direct or consequential. 

	4. 
	RENT. 

	  	
4.1     
Base Rent. The Base Rent for the Premises for the term of this Lease shall be as
specified in Section 1.9, payable in the monthly installments specified therein, in
advance, on the first day of each month of the term hereof; Tenant shall pay Landlord upon
the execution of this Lease the sum specified in Section 1.9 as the installment of Base
Rent for the first full calendar month of the term of the Lease. Provided, however, that
if the Commencement Date does not occur on the first day of a month, the aforesaid payment
shall be for the initial thirty (30) days of the Lease and the next monthly installment of

-4-

	  	
Base Rent shall be due on the first day of the first full calendar month of the term but
shall be prorated to cover only those days of said calendar month not previously paid by
the Tenant by its initial payment. Base Rent for any period during the term hereof which
is less than one (1) calendar month shall be a pro rata portion of the monthly installment
based upon the actual number of days the Lease is in effect during said calendar month.
All rents shall be payable in lawful money of the United States of America without notice
or demand and without any deduction, offset or abatement, and shall be payable to Landlord
at the address stated in Section 1.11(a) or to such other persons or at such other places
as Landlord may designate in writing. The payment of Base Rent hereunder shall be an
independent covenant. 

	  	
4.2     
Additional Rent. Both Tenant and Landlord expressly understand and agree that all
other sums, excepting Base Rent as described in Sections 4.1 and 5, which may from time to
time become due under this Lease, shall be deemed Additional Rent. Additional Rent shall
include, but not be limited to, late charges, interest, Shared Expenses as described in
Section 6, attorneys’ fees, security deposits and any cash bonds which may by
circumstance be required to be posted hereunder. Both Tenant and Landlord expressly
understand and agree that all monies paid by Tenant hereunder shall be first credited to
Additional Rent (and allocated among different items of Additional Rent as Landlord may
determine), and only then to Base Rent. All payments of Additional Rent shall be in lawful
money of the United States of America, shall be paid without any deduction, offset or
abatement, and shall be payable to Landlord at the address stated in Section 1.11(a) or to
such other persons or at such other places as Landlord may designate in writing. The
obligation to make payments of Additional Rent hereunder shall be an independent covenant. 

	  	
4.3     
Storage. Tenant agrees to pay to Landlord the amount of Additional Rent for storage
as set forth in any Storage Space Addendum incorporated in this Lease, in advance for each
month on the first day of each month of the term hereof. Unless Tenant executes a Storage
Space Addendum, Tenant shall have no right to use any storage facilities of the Building. 

	  	
4.4     
Acceptance of Rental Payments. No acceptance by Landlord of a lesser sum than the
Base Rent and/or Additional Rent then due shall be deemed to be other than on account of
the earliest amount of such rental due (unless Landlord elects otherwise), nor shall any
endorsement or statement on any check or any letter accompanying any check or payment as
rent be deemed an accord and satisfaction or compromise and settlement, and Landlord may
accept such check or payment without prejudice to Landlord’s right to recover the
balance of such payments due or to pursue any other remedy as provided in this Lease. 

	5. 
	ESCALATIONS OF RENT. 

	  	
5.1     
Determination. Intentionally Omitted

	  	
5.2     
Indexing. Intentionally Omitted

	6. 
	SHARED EXPENSES. 

	  	
6.1     
Determination. The monthly obligations for Additional Rent as described in Section
4.2 shall be annually adjusted in accordance with the provisions of Section 6.2 below. 

	  	
6.2     
Escalations. (a) Landlord agrees to expend as its share of Operating Expenses paid
for and sustained by the Landlord during any calendar year an amount not greater than that
specified in Section 1.14. Said sum shall constitute the maximum payable by Landlord as
its contribution toward Operating Expenses. The term “Operating Expense” means
the total amounts paid or payable, whether by the Landlord, or otherwise, on behalf of the
Landlord, in connection with the ownership, leasing, management, maintenance, repair and
operation of the Building, other than those expenses described in Section 6.2(b).
Operating Expense shall include, without limiting the generality of the foregoing, the
aggregate of the amount paid for heating, air conditioning, and providing electricity and
water and sewer charges to the Building, other than that paid by individual tenants, the
amount paid to any persons or entities for all labor and/or wages (including the cost to
Landlord of workmen’s compensation and disability insurance, payroll taxes, welfare
and fringe benefits), for services rendered, and materials provided to the Building;
administrative expenses related to the Building; any costs incurred for any capital
improvements or structural repairs to the Building to effect labor savings or otherwise
reduce Operating Expenses, or required by law or by any governmental or quasi-governmental
authority having jurisdiction over the Building, which costs shall be amortized over the
useful life of the applicable capital improvements or structural repairs; 

-5-

	  	
the cost of
accounting services necessary to compute the rent and charges payable by tenants of the
Building; fees for management services pertaining to the Building; the cost of guards and
other protection services; and the amount paid for premiums for all insurance procured by
Landlord to insure the Building as may be required or permitted under this Lease
(including, without limitation, business interruption insurance (why?), and if there is a
mortgage or deed of trust on the Building, such insurance as may be required by the holder
of such mortgage or deed of trust). Notwithstanding the foregoing, Operating Expenses
shall not include the costs of special services rendered to tenants (including Tenant) for
which a special or separate charge is made, any costs of preparation of space for new
tenants in the Building, any costs borne directly by Tenant under this Lease, leasing
commissions, depreciation or interest payments, or debt service payments made to a
mortgagee. Notwithstanding anything to the contrary contained in this Lease,
Landlord’s obligation to pay in any calendar year, as Landlord’s share of
Operating Expenses paid for and sustained by the Landlord during any calendar year, an
amount not greater than that specified in Section 1.14, is subject to and contingent upon
the Building being fully occupied at the end of the calendar year in question. If the
Building is not fully occupied at the end of any calendar year of the term of this Lease,
then Landlord’s obligation to pay Operating Expenses in such calendar year in an
amount not greater than that specified in Section 1.14, for purposes of this Section 6.2,
shall be determined as if the Building had been fully occupied during that entire calendar
year (“grossed up”) and Operating Expenses had been in an amount which would be
normal if the Building were fully occupied. For the purposes of this Lease, the term
“fully occupied” means the occupancy of 90% of the Total Building Area (as
specified in Section 1.4 hereof). Landlord, in its sole discretion, will determine which
Operating Expenses are appropriate to “gross up” for purposes of this Section
6.2. Landlord shall consistently apply all “gross ups”. 

               		
                   (b)   Landlord agrees to expend as its share of Real Estate Taxes paid for and
                    sustained by the Landlord during any calendar year an amount not greater than
                    that specified in Section 1.15. Said sum shall constitute the maximum payable by
                    Landlord as its contribution toward Real Estate Taxes. Real Estate Taxes shall
                    include general and special taxes, assessments, duties and levies, charged and
                    levied upon or assessed against the Building and/or any improvement situated on
                    the real property on which the Building stands, any leasehold improvement,
                    fixtures, installations, additions and equipment used in the maintenance or
                    operation of the Building, whether owned by Landlord or Tenant, not paid
                    directly by the Tenant. Further, if at any time during the term of this Lease,
                    the method of taxation of real estate prevailing at the time of execution hereof
                    shall be or has been altered so as to cause the whole or any part of the taxes
                    now or hereafter levied, assessed or imposed on real estate to be levied,
                    assessed or imposed upon Landlord, wholly or partially, as a capital levy or
                    otherwise, or on, or measured by the rents received from the Building, then such
                    new or altered taxes attributable to the Premises shall be deemed to be included
                    within the term “Real Estate Taxes” for purposes of this paragraph.
                    The reference to “Building” in this subparagraph shall include, as
                    allocated by the Landlord, improvements or facilities utilized in common by the
                    Building and other buildings upon or adjacent to the real property on which the
                    Building stands. 

                    

               		
                     (c)   Commencing one (1) year after the Commencement Date, and continuing thereafter
                    during the term of this Lease, Tenant shall pay to Landlord monthly in advance
                    on the first day of each month, without notice or demand and without any
                    deduction, offset or abatement, in lawful money of the United States of America,
                    the amount of the Tenant’s Pro-Rata Share of the Shared Expenses as
                    estimated by Landlord to be incurred for the calendar year in which the monthly
                    payments are to be made. If the Expiration Date is not December 31, the monthly
                    payments owing hereunder during the last partial calendar year of the Lease
                    shall be appropriately adjusted. The term “Shared Expenses” shall mean
                    the amount by which Operating Expenses and Real Estate Taxes incurred in any
                    period exceed the amount of Landlord’s obligation for the same as specified
                    in Section 1.14 and 1.15. 

                    

               	 	
                     (d)   In each calendar year after the year in which the Commencement Date occurs,
                    Landlord shall send to Tenant a Landlord’s Statement which shall set forth
                    the actual amount of Shared Expenses, with the exception of those States in
                    which real estate taxes are billed on other than a calendar year basis, in that
                    event Landlord’s statement of Real Estate Taxes will be based on the Real
                    Estate Tax Fiscal Year and sent within a reasonable time after receipt of Real
                    Estate Tax Statements, and Tenant’s Pro-Rata Share thereof for the
                    preceding calendar year or portion thereof and the estimated amount of Shared
                    Expenses and Tenant’s Pro-Rata Share thereof for the calendar year in which
                    the Landlord’s Statement is given. Landlord’s failure to render a
                    Landlord’s Statement with respect to any period shall not eliminate or
                    reduce Tenant’s obligation to pay Shared Expenses and shall not prejudice
                    Landlord’s right to render a Landlord’s Statement with respect to any
                    subsequent period. The obligations of Tenant under the provisions of this
                    paragraph with respect to any increase in rent shall survive the expiration or
                    any sooner termination of the term of the Lease. Within fifteen (15) days next
                    following the 

                    

-6-

               	 	
                     notification by Landlord of the contents of its Landlord’s
                    Statement, Tenant shall pay to Landlord the entire amount of Tenant’s
                    Pro-Rata Share of actual Shared Expenses for the prior period covered by the
                    Landlord’s Statement less the amount of Shared Expenses actually paid by
                    Tenant for said period, plus Tenant shall also then pay to Landlord such amount
                    as is necessary to assure that, through the calendar month in which the
                    Landlord’s Statement is given, the Tenant has paid to Landlord the full
                    amount of estimated Shared Expenses for the calendar year in which
                    Landlord’s Statement is given, as if the Landlord’s Statement were
                    given on January 1 of said calendar year. For each month following for the
                    remainder of said calendar year, Tenant shall pay the monthly estimated Shared
                    Expenses set forth in the Landlord’s Statement. In the event that the
                    estimated payments made by the Tenant in the calendar year preceding the date on
                    which the Tenant is given notice of the Landlord’s Statement exceed the
                    Tenant’s Pro-Rata Share of actual Shared Expenses for such calendar year,
                    then should the Tenant not be otherwise in default hereunder, the amount of such
                    excess shall be applied by the Landlord to the next succeeding installments of
                    monthly estimated payments of Shared Expenses. 

                    

	  	
6.3     
Statements. Nothing in this Lease shall be construed to require Landlord to render
the statements described in Sections 5.2 and 6.2 simultaneously or in any particular
order. All reasonable determinations by Landlord pursuant to Section 6 shall be presumed
to be correct. Until Tenant is advised of the adjustment in its obligation to pay Shared
Expenses, if any, pursuant to the provisions of Section 6.2, Tenant’s monthly rental
shall continue to be paid at the then current rent (including all prior adjustments
thereto pursuant to this Lease). Upon written notice to Landlord of not less than fifteen
business days, Tenant shall have the right to review the documentation relied upon by
Landlord relating to the computation of Shared Expenses, which review shall occur at the
location specified in Section 1.11(b). All Shared Expenses shall be computed on the actual
basis. In computing Shared Expenses, no cost or expense may be accounted more than once,
any expenses which are paid by the proceeds of insurance shall be excluded, and any
expenses which are separately metered or billed directly to and separately paid by any
other tenant shall be excluded. Tenant shall have the right to cause an audit to be made
of Landlord’s computation of Shared Expenses, at the location of the Corporate Office
in Jersey City, NJ, at Tenant’s sole expense, not more frequently than once per
calendar year. Tenant shall not be entitled to withhold or deduct any portion of Base Rent
or Additional Rent during the pendency of any such audit. Any errors disclosed by such
audit shall be promptly corrected, provided that Landlord shall have the right to cause
another independent audit to be made of such computations. In the event that there is a
disagreement between such audits, the parties shall submit such matter to binding
mediation. 

	  	
6.4     
Electricity. Beginning on the earlier of the date that Tenant first occupies the
Premises or the Commencement Date, and continuing thereafter during the term of this
Lease, Tenant shall pay to Landlord monthly in advance on the first day of each month,
without notice or demand and without any deduction, offset or abatement, in lawful money
of the United States of America, the amount per foot set forth in Section 1.16 multiplied
by the Usable area in the Premises, for electrical usage in the Premises, payable in 12
equal monthly installments per annum. In the event electrical rates charged by the local
utility are increased, or if it is determined by an electrical usage survey that the
Tenant is using more electricity that it is currently paying for, then the Landlord shall
have the right to increase the charge for electricity commensurate with the rate increase
or the determination of the survey. 

	7. 
	SECURITY DEPOSIT. 

	7.1 	  	
Tenant agrees to submit a security deposit upon the execution of this Lease in the amount
set forth in Section 1.17 to the Landlord. The Security Deposit will not be held in an
escrow account and Tenant shall not be entitled to interest on it. 

	7.2 	  	
Upon fourteen (14) days notice, the Landlord may deduct from the Security any expenses
incurred in connection with the Tenant’s violation of any agreement in this Lease. If
the amount of damage exceeds the Security, the Tenant shall pay the additional amount to
the Landlord on demand. The amount of Security is to remain constant throughout the Term
and replenished in the event such expenses are deducted. Security is not to be used for
the payment of Rent. 

	7.3 	  	
Tenant is to leave the Premises in good condition upon vacating. All Rent and Additional
Rent is to be paid in full within fourteen (14) days after leaving the Premises. In the
event that the Premises is not left in good condition, or Rent and Additional have not
been paid in full, Landlord may deduct such amounts to put the Premises in good condition
and satisfy any outstanding balances of Rent and Additional Rent pursuant to this Lease.
The Landlord shall repay to the Tenant any balance remaining within thirty (30) days after
the end of the Term. 

-7-

	8. 
	USE. 

	  	
8.1     
Use. The Premises shall be used and occupied only for the uses specified in Section
1.18 hereof, provided that the foregoing shall not be construed as a representation or
guarantee by the Landlord that such business may lawfully be conducted on the Premises. 

	  	
8.2     
Compliance With Law. In the event it is determined by the applicable governmental
unit that the Premises violates any building code, regulation or ordinance, then it shall
be the obligation of the Landlord, after written notice from Tenant which includes a copy
of the governmental unit’s determination, to promptly, at Landlord’s sole cost
and expense, rectify any such violation. In the event Tenant does not give to Landlord
written notice of any such violation within thirty (30) days from the date on which Tenant
is notified, then the correction of the same shall be the obligation and expense of the
Tenant. 

	  	
8.3     
Waste and Nuisance. Tenant shall not commit, suffer or permit any waste, damage,
disfiguration or injury to the Premises, the common areas in the Building, or the fixtures
and equipment located therein or thereon. Tenant shall not permit or suffer any
overloading of the floors thereof, and shall not place therein any heavy business
machinery, safes, computers, data processing machines, or other items heavier than
customarily used for general office purposes without first obtaining the written consent
of Landlord. Tenant shall not use or permit to be used any part of the Building for any
dangerous, noxious or offensive trade or business, and shall not cause or permit any
nuisance, noise, action, or disturbance of other tenants, in, at or on the Premises.
Tenant shall be permitted to install a small satellite dish for use in corporate
communication with its home office. The size and location of the dish must meet with
Landlord’s approval prior to installation, such approval not to be unreasanobly
withheld. 

	  	
8.4     
Conditions of Premises. Except as provided in Section 8.2, Tenant hereby accepts
the Premises in their condition existing as of the date of the commencement hereof,
subject to all applicable zoning, municipal, county and state laws, ordinances and
regulations governing and regulating the use of the Premises, and accepts this Lease
subject thereto and to all matters disclosed thereby and by any exhibits attached hereto.
In addition, except as provided in Section 8.2, Tenant shall at Tenant’s expense,
comply promptly with all applicable laws, statutes, ordinances, rules, regulations,
orders, restrictions of record, and requirements in effect during the term or any part of
the term hereof regulating the use by Tenant of the Premises. 

	  	
8.5     
Insurance Cancellation. Notwithstanding the provisions of Section 8.2 hereinabove,
no use shall be made or permitted to be made of the Premises, nor acts done which will
cause the cancellation of any insurance policy covering said Premises or the Building, and
if Tenant’s use of the Premises causes an increase in said insurance rates, Tenant
shall pay any such increase as Additional Rent, which, together with interest on any
amount paid therefor by Landlord, shall be payable by Tenant on the next succeeding date
on which a Base Rental payment is due. 

	  	
8.6     
Landlord’s Rules and Regulations. Tenant shall faithfully observe and comply
with the reasonable rules and regulations that Landlord shall from time to time
promulgate, including without limitation any rules and regulations attached to this Lease,
which are hereby incorporated herein by this reference. Landlord reserves the right from
time to time to make all reasonable modifications to said rules and regulations. The
additions and modification to those rules and regulations shall be binding upon Tenant
upon Landlord giving notice of them to Tenant. Landlord shall not be responsible to Tenant
for the nonperformance of any of said rules and regulations by any other tenants or
occupants. 

	9. 
	LANDLORD’S SERVICES. 

	  	
9.1     
Basic Services. Subject to any law, rule or governmental order or regulation, and
further subject to any circumstance beyond the control of the Landlord, Landlord shall
furnish the following services at its cost and expense: 

          		        (a)       
               Air conditioning and heat, whichever be required, from 8 a.m. to 6 p.m., Monday
               through Friday, excluding legal holidays; 

               

          		        (b)       
               Hot and cold water for lavatory purposes and electric current for lighting the
               Premises and for ordinary office appliances and office machines only, provided
               that Tenant shall not use any electrical equipment which in Landlord’s
               opinion will overload the wiring insulations or interfere with the use thereof
               by Landlord or any other tenant in the Building. If a further supply of water is
               required by Tenant, then at Tenant’s expense, 

               

-8-

          		Landlord shall have the
               option to install and maintain a water meter to register such consumption, and
               Tenant shall pay as Additional Rent for water consumed, at the cost to Landlord,
               and for sewer rents and all other rents and charges based upon such consumption
               of water; 

               

          		        (c)       
               General day-to-day janitorial service (excluding carpet shampooing and hard
               surface floor waxing) five days a week, and elevator service during the same
               hours for which air conditioning and heat services are provided as set forth
               above, provided, however, that in the event Tenant is delinquent in making any
               installment payment of rent under this Lease for a period of fifteen (15) days
               or more after it shall become due, Landlord may discontinue furnishing any or
               all of the services described in this Section 9 until all arrears of rental
               payments, plus interest and late charges and any other sums due under this
               Lease, shall have been paid in full. Whenever heat generating machines or
               equipment are used by Tenant in the Premises which affect the temperature
               otherwise maintained by the air conditioning system, as determined by Landlord,
               Landlord reserves the right to install supplementary air conditioning units in
               the Premises, and the costs therefor, including the cost of installation,
               operation and maintenance thereof, shall be paid by Tenant to Landlord upon
               demand by Landlord. If Tenant, as determined by Landlord, requires electric
               current in excess of that usually furnished or supplied to the Premises,
               Landlord may, at its election, either cause an electric current meter to be
               installed in the Premises so as to measure the electric current consumed for
               such excess use or determine the value of such excess use by causing an
               independent electrical engineer or consulting firm, selected by Landlord, to
               conduct a survey of Tenant’s use of electric current and to certify such
               determination in writing to Landlord and Tenant. The cost of any such survey or
               installation and maintenance of such meter shall be borne by Tenant if the
               survey or meter indicates excess use by Tenant. Additionally, Tenant agrees to
               pay to Landlord, as Additional Rent, promptly upon demand therefor by Landlord,
               the amount determined to be due for the electric current consumed by Tenant, as
               shown by said meter or as indicated in said survey, as the case may be, at the
               rate charged for such service by the local public authority or the local public
               utility, as the case may be, furnishing the same, plus any additional expenses
               incurred by Landlord in keeping account of the electric current consumed. 

               

          		        (d)       
               Notwithstanding anything in this Lease to the contrary, Tenant will not without
               the prior written consent of Landlord use any apparatus or device in the
               Premises that will in any way increase the amount of electricity or water
               usually furnished or supplied for use of the Premises as general office space.
               Tenant shall not connect with any electric current except through existing
               electrical outlets in the Premises, or to any water pipes, any apparatus or
               device for the purposes of using electric current or water. If Tenant shall
               require water or electric current in excess of that usually furnished or
               supplied for use of the Premises, Tenant must first procure the written consent
               of Landlord to the use thereof. With the prior written consent of Landlord,
               Tenant may maintain and operate data processing equipment on the Premises, but
               all additional costs in connection therewith (including, but not limited to,
               additional support flooring, insulation, electrical outlets and temperature
               maintenance facilities) shall be borne solely by Tenant and the utility services
               utilized by or for such equipment shall be separately metered and the cost of
               such utility services with metering shall be borne solely by Tenant. At
               Tenant’s request and with Landlord’s prior approval, Landlord shall
               furnish the services described in this Section at times other than specified in
               Section 9.1 (a), provided that Tenant shall pay the entire cost thereof as
               reasonably determined by Landlord as Additional Rent, notwithstanding the fact
               that such services may also benefit portions of the Building other than the
               Premises (in which event Landlord shall not receive collectively from all
               tenants paying for any portion of such additional services more than the actual
               cost to Landlord of providing the same). 

               

	  	
9.2     
Interruption of Services. Landlord reserves the right from time to time to install,
use, maintain, repair, replace and relocate service to the Premises and other parts of the
Building, and to alter or relocate any other facility in the Building. Interruption or
curtailment of any service maintained in the Building, if caused by strikes, mechanical
difficulties, actions of the Landlord under the first sentence of this Section 9.2, or for
any other reason beyond Landlord’s control, shall not entitle Tenant to any claim
against Landlord or to any abatement in rent, nor shall the same constitute constructive
or partial eviction. Unless due to the gross negligence of Landlord, Landlord shall not be
liable to Tenant for any injury or damage resulting from defects in the plumbing, heating,
or electrical systems in the Building or for any damage resulting from water seepage into
the Building or for any act or failure to act by any other Tenants at the Building or for
any damage resulting from wind storm, hurricane or rain storm. 

	10. 
	MAINTENANCE, REPAIRS AND ALTERATIONS. 

-9-

	  	
10.1     
Landlord’s Obligations. Subject to the provisions of Sections 8.2 and 14, and
except for damage caused by any negligent or intentional act or omission of Tenant,
Tenant’s agents, employees, representatives, customers or invitees, in which event
Tenant shall repair the damage, at its sole expense, Landlord shall keep in good order,
condition and repair the structural portions of the Building and those portions of the
Building which are not occupied or leased by any tenant, and all costs incurred by
Landlord in making any such repairs or performing such maintenance shall be Operating
Expenses as defined in Section 6.2, provided that Landlord shall have no obligation to
perform any act which is the obligation of Tenant or any other tenant in the Building.
Other than as specifically provided in this Section 10.1, Landlord shall not be obligated
to make any repairs or improvements of any kind, in, upon, about, or to the Premises or
the Building. 

	  	
10.2     
Tenant’s Obligations. Subject to the provisions of Sections 8.2 and 14,
Tenant, at Tenant’s expense, shall keep in good order, condition and repair the
Premises and every part thereof including, without limiting the generality of the
foregoing, all plumbing, electrical and lighting facilities and equipment within the
Premises, fixtures, interior walls and interior surfaces of exterior walls, ceilings,
windows, doors, plate glass and skylights located within the Premises. All repairs made by
the Tenant shall be at least of the same quality, design and class as that of the original
work. Tenant agrees that it will abide by, keep and observe all reasonable rules and
regulations which Landlord may make from time to time for the management, safety, care and
cleanliness of the Building and grounds, the parking of vehicles and the preservation of
good order therein as well as for the convenience of other occupants and tenants of the
Building. All damage or injury to the Building or to the Premises, fixtures, appurtenances
and/or equipment caused by the Tenant moving property in or out of the Building or the
Premises or by Tenant’s installation or removal of furniture, fixtures, or other
property, or from any other cause of any kind or nature whatsoever due to carelessness,
omission, neglect, improper conduct, or other cause of the Tenant, its agents, employees,
invitees, contractors or subcontractors shall be repaired, restored, or replaced promptly
by the Tenant at its sole cost and expense to the satisfaction of the Landlord. In the
event that the Tenant fails to keep the Premises in good order, condition and repair while
this Lease remains in effect, then as soon as possible after written demand (which written
demand shall not be required in the case of an emergency), Landlord may restore the
Premises to such good order and condition and make such repairs without liability to
Tenant for any loss or damage that may accrue to Tenant’s property or business by
reason thereof, and upon completion thereof Tenant shall pay to Landlord upon demand and
as Additional Rent the cost of restoring the Premises to such good order and condition,
together with interest thereon from the date paid. Bulb replacement when necessary shall
be at the expense of the Tenant. 

	  	
10.3     
Surrender. On the last day of the term hereof or on any sooner termination or date
on which Tenant ceases to possess the Premises, Tenant shall surrender the Premises to
Landlord in good and clean condition, ordinary wear and tear excepted. Prior to such
surrender Tenant shall repair any damage to the Premises occasioned by its removal of
trade fixtures, furnishings and equipment, which repair shall include the patching and
filling of holes and repair of structural damage. Tenant agrees to indemnify Landlord and
hold Landlord harmless from and against any liability (including reasonable
attorneys’ fees) of Landlord to third parties resulting from Tenant’s failure to
timely comply with the provisions of this Section 10.3. 

	  	
10.4     
Alterations and Additions. (a) Tenant shall not, without Landlord’s prior
written consent, make any alterations, improvements or additions (referred to collectively
herein as “Alterations”) in, on or about the Premises. Landlord may require that
Tenant remove any or all of said Alterations at the expiration of the term or such other
time at which Tenant ceases to possess the Premises, and restore the Premises to their
prior condition. Should Tenant make any Alterations without the prior approval of the
Landlord, Landlord may require that Tenant immediately remove any or all of such items
and/or Landlord may declare a default by Tenant under this Lease. Except in connection
with normal interior decorating of the Premises, Tenant shall not place any holes in any
part of the Premises, and in no event shall Tenant place any exterior or interior signs or
interior drapes, blinds, or similar items visible from the outside of the Premises without
the prior written approval of Landlord. 

          		        (b)       
               Any Alterations in, on or about the Premises that Tenant shall desire to make
               shall be presented to Landlord in written form with proposed detailed plans. If
               Landlord shall give its consent, the consent shall be deemed conditioned upon
               Tenant acquiring a permit to do the work from appropriate governmental agencies,
               the furnishing of a copy thereof to Landlord prior to the commencement of the
               work and the compliance by Tenant with all conditions of said permit and with
               all specifications in the plans in a prompt and expeditious manner. Tenant shall
               not permit any of the work to be performed by persons not currently licensed
               under any applicable licensing laws or regulations pertaining to the types of
               work to be performed. Landlord shall not be deemed 

               

-10-

          		unreasonable in the exercise
               of its discretion for withholding approval of any Alterations which involve or
               might affect any structural or exterior element of the Building, any area or
               element outside of the Premises, or any facility serving any area of the
               Building outside of the Premises, or which will require unusual expense to
               re-adapt the Premises to normal office use on the termination or expiration of
               the Lease, unless in the latter case Tenant either desires to or is required to
               make repairs or Alterations in accordance with this Lease, Landlord may require
               Tenant, at Tenant’s sole cost and expense, to obtain and provide to
               Landlord a lien and completion bond (or such other applicable bond as determined
               by Landlord) in an amount equal to one and one-half (1-1/2) times the estimated
               cost of such improvements, to insure Landlord against liability including but
               not limited to liability for mechanic’s and materialmen’s liens and to
               insure completion of the work. 

               

          		        (c)       
               Tenant shall pay, when due, all claims for labor or materials furnished or
               alleged to have been furnished to or for Tenant at or for use in the Premises,
               which claims are or may be secured by any mechanic’s or materialmen’s
               lien against the Premises or the Building. Tenant shall give Landlord not less
               than ten (10) days notice prior to the commencement of any work in, on or about
               the Premises, and Landlord shall have the right to post notices of
               non-responsibility in, on or about the Premises as provided by law. Tenant shall
               have no power or authority to do any act or make any contract that may create or
               be the basis for any lien upon the interest of the Landlord, the Premises or the
               Building, or any portion thereof. If any mechanics or other lien or any notice
               of intention to file a lien shall be filed or delivered with respect to the
               Premises or the Building, based upon any act of the Tenant or of anyone claiming
               through the Tenant, or based upon work performed or materials supplied allegedly
               for the Tenant, Tenant shall cause the same to be canceled and discharged of
               record within fifteen (15) days after the filing or delivery thereof. If Tenant
               has not so canceled the lien within fifteen (15) days as required herein,
               Landlord may pay such amount, and the amount so paid together with interest
               thereon from the date of payment and all legal costs and charges, including
               attorneys fees, incurred by Landlord in connection with said payment and
               cancellation of the lien or notice of intent shall be Additional Rent and shall
               be payable on the next succeeding date on which a Base Rental installment is
               due. Landlord may, at its option and without waiving any of its rights set forth
               in the immediately preceding sentence, permit Tenant to contest the validity of
               any such lien or claim, provided that in such circumstances the Tenant shall at
               its expense defend itself and Landlord against the same and shall pay and
               satisfy any such adverse judgment that may be rendered thereon before the
               enforcement thereof against the Landlord, the Premises or the Building, provided
               further that Landlord may at any time require the Tenant to deposit with the
               court exercising jurisdiction over such claim, such amount as may be necessary
               under applicable statutes to cause the release and discharge of the lien, and if
               Tenant shall not immediately make such payment upon the request of Landlord,
               Landlord may make said payment and the amount so paid, together with interest
               thereon from the date of payment and all legal costs and charges, including
               attorneys fees, incurred by Landlord in connection with said payment shall be
               deemed Additional Rent and shall be payable on the next succeeding date on which
               a Base Rental installment is due. In addition, Landlord may require Tenant to
               pay Landlord’s attorney fees and costs in participating in such action if
               Landlord shall decide it is in its best interest to do so. Nothing herein
               contained shall be construed as a consent on the part of Landlord to subject the
               interest and estate of Landlord to liability under any lien law of the state in
               which the Premises are situated, for any reason or purpose whatsoever, it being
               expressly understood that Landlord’s interest and estate shall not be
               subject to such liability and that no person shall have any right to assert any
               such lien. 

               

          		        (d)       
               Unless Landlord requires their removal, as set forth in Section 10.4(a), all
               Alterations which may be made on the Premises shall, at the expiration of the
               term or such other time at which Tenant ceases to possess the Premises, become
               the property of Landlord and remain upon and be surrendered with the Premises.
               Notwithstanding the provisions of this Section 10.4(d), Tenant’s machinery
               and equipment, other than that which is affixed to the Premises so that it
               cannot be removed without material damage to the Premises, shall remain the
               property of Tenant and may be removed by Tenant subject to the provisions of
               Section 10.3 hereof and provided further that Tenant is not in default under
               this Lease at the time Tenant ceases to possess the Premises. 

               

-11-

	11. 
	TENANT’S USE OF PUBLIC AREAS. 

	  	
Tenant’s
non-exclusive use of the public areas described in Section 2.3 shall be subject to such
Reasonable Rules and Regulations promulgated by Landlord pursuant to Section 8.6. Tenant
agrees to repair at its cost all deteriorations or damages to the public areas occasioned
by its negligence or intentional misconduct or that of its officers, agents,
representatives, customers, employees or invitees. 

	12. 
	TAXES AND TELEPHONE. 

	  	
12.1     
Personal Property Taxes. Tenant shall pay prior to delinquency all taxes assessed
against and levied upon leasehold improvements, fixtures, furnishings, equipment and all
other personal property of Tenant contained in the Premises or elsewhere. If Tenant shall
cause said leasehold improvements, trade fixtures, furnishings, equipment and all other
personal property to be assessed with Landlord’s real property, Tenant shall pay
Landlord the taxes attributable to Tenant within ten (10) days after receipt of a written
notice from Landlord setting forth the taxes applicable to Tenant’s property, and if
Tenant fails to do so, Landlord may make such payment and the amount so paid, together
with interest thereon from the date paid, shall be Additional Rent and shall be due and
payable to Landlord on the next succeeding date on which a Base Rental installment is due. 

	  	
12.2     
Evidence of Payment. Tenant shall promptly deliver to Landlord, upon
Landlord’s written request, receipts for payments of all taxes, charges, rates, dues,
assessments and licenses in respect of all improvements, equipment and facilities of the
Tenant on or in the Premises, which were due and payable within a period up to one (1)
year prior to Landlord’s making such request. 

	  	
12.3     
Telephone. Tenant shall separately arrange and pay for the furnishing of and use of
all telephone services as Tenant may deem necessary for its use of the Premises, and
Landlord shall have no liability in connection therewith. 

	13. 
	INSURANCE AND INDEMNITY. 

	  	
13.1     
Liability Insurance. Tenant shall, at Tenant’s expense, obtain and keep in
force during the term of this Lease a policy of bodily injury and property damage
insurance, insuring Landlord and Tenant against any liability arising out of the
ownership, use, occupancy or maintenance of the Premises and all areas appurtenant
thereto. Such insurance shall be in an amount not less than $1,000,000 bodily injury and
property damage combined single limit general liability with a $1,000,000 umbrella
liability. The limits of said insurance shall not, however, limit the liability of Tenant
hereunder. If in the opinion of Landlord the amount of liability insurance required
hereunder is not adequate, then not more frequently than once during each option,
extension or renewal term of this Lease, if any, Tenant shall increase said insurance
coverage as required by Landlord. Provided, however, that in no event shall the amount of
the liability insurance increase by more than fifty percent (50%)of the amount of the
insurance during the preceding term of this Lease. However, the failure of Landlord to
require any additional insurance coverage shall not be deemed to relieve Tenant from any
obligations under this Lease. 

	  	
13.2     
Property Insurance. Landlord shall obtain and keep in force during the term of this
Lease “All Risk” coverage on the Building (including Building standard leasehold
improvements). Landlord may also, but shall not be required to, procure any other
insurance policies respecting the Premises or Building which Landlord deems necessary.
Tenant shall also obtain and keep in force during the term of this Lease, at Tenant’s
expense, “all risk” or “special coverage form” insurance upon the
property of every description and kind owned by the Tenant and located in the Building or
for which Tenant is legally liable or installed by or on behalf of the Tenant, including
without limitation, furniture, fittings, installations, alternations, additions,
partitions, fixtures and anything in the nature of leasehold improvements in an amount not
less than ninety (90%) of the full replacement cost thereof. Such insurance shall insure
the Tenant and Landlord, and in the event that there shall be a dispute as to the amount,
which comprises the full replacement cost, the decision of the Landlord shall be
conclusive. If Tenant shall fail to procure and maintain the insurance required hereunder,
Landlord may but shall not be required to procure and maintain the same, and any amount so
paid by Landlord for such insurance shall be Additional Rent which, together with interest
thereon from the date paid, shall be due and payable by Tenant on the next succeeding date
on which a Base Rental installment is due. 

	  	
13.3     
Insurance Policies. Insurance required by Tenant hereunder shall be in companies
rated A- or better in “Best’s Insurance Guide”. Tenant shall deliver to
Landlord prior to 

-12-

	  	
taking possession of the Premises, copies of policies of such insurance
or certificates evidencing the existence and amounts of such insurance with loss payable
and additional insured clauses reasonably satisfactory to Landlord. No such policy shall
be cancelable or subject to reduction of coverage or other modification except after ten
(10) days’ prior written notice to Landlord. Tenant shall, within ten (10) days prior
to the expiration of such policies, furnish Landlord with renewals thereof, or Landlord
may order such insurance and charge the cost thereof to Tenant, which amount, together
with interest thereon, shall be Additional Rent and shall be payable by Tenant on the next
succeeding date on which a Base Rental payment is due. Tenant shall not do or permit to be
done anything that shall invalidate the insurance policies referred to in Section 13.1.
Tenant shall forthwith, upon Landlord’s demand, reimburse Landlord for any additional
premiums attributable to any act or omission or operation of Tenant causing an increase in
the cost of insurance. 

	  	
13.4     
Waiver of Subrogation. Tenant and Landlord each waives any and all rights of
recovery against the other, or against the officers, employees, agents and representatives
of the other for loss or damage to such waiving party or its property or the property of
others under its control, where such loss or damage is insured against under any insurance
policy in force at the time of such loss or damage. Tenant and Landlord shall, upon
obtaining the policies of insurance required hereunder, give notice to the insurance
carriers that the foregoing mutual waiver of subrogation is contained in this Lease and
obtain policies of insurance, if obtainable, which shall include a waiver by the insurer
of all right of subrogation against Landlord or Tenant in connection with any loss or
damage thereby insured against. 

	  	
13.5     
Hold Harmless. Tenant shall indemnify, defend and hold Landlord harmless from any
and all claims, liabilities, damages and costs, including attorneys fees, incurred by
Landlord which arise from Tenant’s use of the Premises or the Building or from the
conduct of its business or from any activity, work or things which may be permitted or
suffered by Tenant in, on or about the Premises or the Building, and shall further
indemnify, defend and hold Landlord harmless from and against any and all claims,
liabilities, damages and costs, including attorneys fees, incurred by Landlord which arise
from any breach or default in the performance of any obligation on Tenant’s part to
be performed under any provision of this Lease or which arise from any negligence of
Tenant or any of its agents, representatives, customers, employees or invitees. 

	  	
13.6     
Exemption of Landlord from Liability. Tenant hereby agrees that Landlord shall not
be liable for injury to Tenant’s business or any loss of income therefrom, or for
damage to the goods, wares, merchandise or other property of Tenant, Tenant’s
employees, representatives, agents, invitees, customers or any other person in, on or
about the Premises or Building, nor shall Landlord be liable for injury to the person of
Tenant, Tenant’s employees, representatives, agents, customers, or invitees, whether
any such damage or injury is caused by or results from fire, steam, electricity, gas,
water or rain, or from the breakage, leakage, obstruction or other defects of pipes,
sprinklers, wires, appliances, plumbing, air conditioning or lighting fixtures, or from
any other cause, and whether the said damage or injury results from conditions arising
upon the Premises or any other cause, and whether the said damage or injury results from
conditions arising upon the Premises or Building, or from other sources or places, and
regardless of whether the cause of such injury or the means of repairing the same is
inaccessible to Landlord or Tenant, unless such injury, loss of income or damage is caused
by the Landlord’s negligence. Landlord shall not be liable for any damages arising
from any act or neglect of any other tenant, if any, of the Building. Tenant hereby
assumes all risk of damage to property or injury to persons in, on or about the Premises
or the Building from any cause and Tenant hereby waives all claims in respect thereof
against Landlord, excepting where said damage arises out of the negligence of Landlord. 

	14. 
	DAMAGE OR DESTRUCTION. 

	  	
14.1     
Option to Terminate Lease. If the Premises or any part thereof shall be damaged or
destroyed by fire or other casualty, the Landlord may, at its option and subject to
Section 14.2 hereinbelow, elect to terminate this Lease by giving notice to the Tenant
within forty five (45) days after Landlord receives actual notice of the fire or other
casualty, and thereupon the term of this Lease shall expire by lapse of time upon the
tenth day after such notice is given. Instead of exercising said option, Landlord may
elect to repair or restore the Premises to the same condition as existed before such
damage or destruction. Upon electing to repair or restore, Landlord may proceed with
reasonable dispatch to perform the necessary work, and the Base Rent to be paid until such
work is completed shall be abated in proportion of the Premises being unusable for a
period equal to one day or less, but Landlord shall not be liable to Tenant for any delay
which arises by reason of labor strikes, adjustments of insurance or any other cause
beyond Landlord’s control, and in no event shall Landlord be liable for any loss of
profits or income. 

-13-

	  	
Notwithstanding the foregoing, there shall be no abatement,
apportionment or reduction in the rental obligations of Tenant if the damage or
destruction is caused by the Tenant or Tenant’s agents, representatives, employees,
customers or invitees. 

	  	
14.2     
Obligation to Repair or Restore. If and only if all of the following circumstances
exist with respect to damage or destruction to the Premises, Landlord may not elect to
terminate the Lease as provided in Section 14.1 hereof but rather must elect to repair or
restore the Premises: 

          		         (a)       
               There is no fault or neglect on the part of the Tenant, Tenant’s agents,
               representatives, employees, customers or invitees that contributed to the damage
               or destruction; 

               

          		         (b)       
               The damage or destruction to the Premises is less than fifty percent (50%) of
               the replacement cost thereof as determined by Landlord; 

               

          		         (c)       
               The Landlord is fully insured for the casualty that causes the damage or
               destruction and the insurance proceeds have been made available therefor by the
               holder or holders of any mortgages or deeds of trust covering the Premises; 

               

          		         (d)       
               The date of the damage or destruction is greater than one (1) year prior to the
               Expiration Date of this Lease or any renewal, modification or extension thereof;
               and 

               

          		         (e)       
               Less than sixty percent (60%) of the rentable square feet of the Building is so
               damaged or destroyed, as determined by Landlord, regardless of the percentage of
               rentable square feet of the Premises that may be damaged or destroyed. 

               

	  	
14.3     
Fault of Tenant. Landlord may exercise its option to repair or restore as described
in Section 14.1 even if such damage or destruction is due to the fault or neglect of
Tenant, Tenant’s agents, representatives, employees, customers or invitees, but in
such event Landlord’s election to repair or restore shall be without prejudice to any
other rights and remedies of Landlord under this Lease, and there shall be no
apportionment or abatement of any rent of any kind and Landlord shall not be liable for
any other loss to Tenant of any nature whatsoever. 

	  	
14.4     
Obligations of Tenant. Except as provided in this Section 14, none of Tenant’s
obligations under this Lease shall be affected by any damage or destruction of the
Premises by any cause whatsoever. Tenant hereby expressly waives any and all rights it
might otherwise have under any law, regulation or statute that would act to modify the
provisions of the immediately preceding sentence. 

	  	
14.5     
Termination by Tenant. In the event that more than sixty percent (60%) of rentable
square feet of the Premises shall be damaged or destroyed by fire or other casualty not
caused by the Tenant or Tenant’s agents, representatives, employees, customers or
invitees, either party may terminate this Lease by giving notice to the other within
thirty (30) business days after the date of the fire or other casualty, and upon such
termination the rental obligations of the Tenant shall be duly apportioned as of the date
of such fire or other casualty, provided, however, that Tenant shall have no right to
terminate the Lease under this Section 14.5 if Tenant is in default of any of its
obligations under the Lease as of the date of the fire or other casualty. 

	15. 
	CONDEMNATION. 

	  	
If
the Premises are taken under any public or private power of eminent domain, or sold by
Landlord under the threat of the exercise of said power (all of which is herein referred
to as “condemnation”), or if any portion of the Building is so condemned so that
it would not be practical, in Landlord’s judgment, to continue to maintain the
Building, this Lease shall terminate as of the date of the condemning authority takes
title or possession, whichever occurs first. If only a portion of the Premises are so
condemned, Landlord shall have the right, if more than sixty percent (60%) of rentable
square feet of the Premises are so condemned, to terminate this Lease as of the date the
condemning authority takes title or possession, whichever occurs first, by Landlord’s
giving written notice of such termination to Tenant not later than thirty (30) days after
said date, but should Landlord elect not to so terminate this Lease, the Lease shall
remain in full force and effect as to the portion of the Premises not so taken, and
Tenant’s rental obligations shall be reduced proportionately to reflect the number of
rentable square feet remaining in the Premises, and such rental reduction, if any, shall
take effect as of the date which is thirty (30) days after the date of which the
condemning authority takes title or possession, whichever first occurs. If repairs or
restorations to that portion of the Premises not so taken are deemed necessary by Landlord
to render such portion reasonably suitable for the purposes for which is was leased, as
determined by Landlord, Landlord shall perform such work at its own cost 

-14-

	  	
and expense but
in no event shall Landlord be required to expend any amount greater than the amount
received by Landlord as compensation for the portion of the Premises taken by the
condemnator. All awards for the taking of any part of the Premises or any payment made
under the threat of the exercise of power of eminent domain shall be the property of
Landlord, whether made as compensation for diminution of value of the leasehold or for the
taking of the fee or as severance damages. No award for any partial or entire taking shall
be apportioned, and Tenant hereby assigns to Landlord any award which may be made in such
taking or condemnation, together with any and all rights of Tenant now or hereafter
arising in or to the same or any part thereof, except that any award or other compensation
made for any taking is subject to the rights of the first mortgagee up to the amount of
its lien and of any junior mortgagee, as may be permitted by the first mortgagee, up to
the full amount of such junior lien; provided, however, that Tenant shall be entitled to
any award for loss of or damage to Tenant’s trade fixtures and removable personal
property and/or for the interruption of or damage to Tenant’s business. 

	16. 
	 ASSIGNMENT AND
SUBLETTING. 

	  	
16.1     
Landlord’s Consent Required. Tenant shall not voluntarily or by operation of
law assign, transfer, mortgage, sublet or otherwise transfer or encumber all or any part
of Tenant’s interest in this Lease or in the Premises without Landlord’s prior
written consent. Any attempted assignment, transfer, mortgage, encumbrance or subletting
without such consent shall be void and shall constitute a breach of the Lease. Any
transfer of Tenant’s interest in this Lease or in the Premises from Tenant by merger
(other than a merger with an affiliate), consolidation or liquidation, or by any
subsequent change in the ownership of fifty percent (50%) or more of the capital stock of
Tenant (in a single transaction not involving an affiliate) shall be deemed a prohibited
assignment within  the meaning of this Section 16. As a condition of obtaining
Landlord’s consent, Tenant shall submit to Landlord together with its request for
consent the name of the proposed assignee or subtenant, the terms and provisions of the
proposed transaction, and such information as to the nature of the proposed
assignee’s or subtenant’s business and its financial responsibility and standing
as Landlord may reasonably require, together with the effective date of the proposed
transfer which shall be at least thirty (30) days after the date of submission of such
information to Landlord. Landlord’s failure to consent to any proposed transfer under
this Section shall not be deemed unreasonably withheld if (a) the occupancy resulting from
such transfer will not be consistent with the general character of the business carried on
by the tenants of the Building or violates any rights or options held by any other tenant
of the building; or (b) the proposed occupant pursuant to the transfer does not have the
financial strength and stability to perform its rental obligations or Landlord is unable
to obtain guaranties from one or more affiliates of the proposed occupant in order to
secure such financial obligations; or (c) any proposed sublease does not incorporate this
Lease in its entirety so as to be subject to this Lease’s terms, or any such sublease
does not require the sublessee to attorn to Landlord at Landlord’s option in the
event of a default by Tenant under this Lease. 

	  	
16.2     
No Release of Tenant. Regardless of Landlord’s consent, no subletting or
assignment or other transfer described in Section 16.1 shall release Tenant of
Tenant’s obligation or alter the primary liability of Tenant to pay the rent and to
perform all other obligations to be performed by Tenant hereunder. Consent to one
assignment, subletting or other transfer shall not be deemed consent to any subsequent
act. In the event of default by any assignee of Tenant or any successor of Tenant in the
performance of any of the terms hereof, Landlord may proceed directly against Tenant
without the necessity of exhausting remedies against said assignee or successor. In the
event Landlord allows assignment or subletting hereunder, neither Tenant, the assignee of
Tenant, or the sublessee of Tenant shall have any option to extend the term of this Lease
even if such option is otherwise granted to Tenant herein and notwithstanding the
provisions of any such option granted to Tenant herein, and all rights and options to
extend this Lease otherwise granted to Tenant shall be deemed terminated and canceled as
of the date of such assignment, subletting or other transfer. Notwithstanding anything in
this Lease to the contrary, Landlord shall have no obligation to grant consent to any
transfer as defined in Section 16.1 if Tenant is in default under this Lease at the time
the request for consent is made or at any time thereafter through the effective date of
the transfer. In addition, Tenant acknowledges that its intent in executing this Lease is
to occupy the Premises and not to make speculative usage of the Premises, and therefore
Landlord shall have no obligation whatsoever to consent to any proposed transfer if the
rentals payable by the proposed occupant to the Tenant are less than the rentals sought to
be received by the Landlord for vacant space in the Building as of the date on which the
Tenant is requesting the Landlord’s consent to the transfer. In the event that Tenant
proposes to assign this Lease or to sublet all of the Premises, Landlord shall have the
right, exercisable by notice in writing after receipt of the request by Tenant, to
terminate this Lease upon execution of an agreement between Landlord and the proposed
assignee or subtenant, provided that Landlord shall not have any such termination right if
Tenant withdraws such request 

-15-

	  	
within ten (10) days of being notified by Landlord that it
has elected to exercise said termination right. 

	  	
16.3     
Attorneys Fees and Administrative Fees. In the event Tenant shall request the
consent of Landlord to any assignment, subletting or transfer or if Tenant shall request
the consent of Landlord for any other act which Tenant proposes to do under any other
provision of this Lease, then Tenant shall pay Landlord’s attorneys fees incurred in
connection with the consideration or evaluation of such request. In addition thereto, in
the event that Landlord shall consent to a sublease, assignment or transfer under Section
16.1, Tenant shall pay Landlord administrative fees of Two Hundred Dollars ($200) incurred
in connection with giving such consent. 

	  	
16.4     
Right to Collect Rent. The acceptance of rent by Landlord from any person other
than Tenant shall not be deemed to be a waiver by Landlord of any provision of this Lease.
If the Premises are sublet or occupied by anyone other than Tenant and Tenant is in
default hereunder, or this Lease is assigned by Tenant, then, in any such event, Landlord
may collect rent from the assignee, subtenant or occupant and apply the net amount
collected to the rent reserved in this Lease, but no such collection shall be deemed a
waiver of the covenant in this Lease against assignment and subletting or the acceptance
of such assignee, subtenant or occupant as tenant, or a release of Tenant from further
performance of the covenants contained in this Lease. 

	17. 
	 DEFAULTS; REMEDIES . 

	  	
17.1     
Defaults. The  occurrence of any one or more of the following  events shall  constitute a default and breach of this
         Lease by Tenant:

          		        (a)       
               The vacating or abandonment of the Premises by Tenant; or 

               

          		        (b)       
               The failure by Tenant to make any payment of Base Rent, Additional Rent or any
               other payment required to be made by Tenant hereunder, as and when due, where
               such failure shall continue for a period of ten (10) days; or 

               

          		        (c)       
               The failure by Tenant to observe or perform any of the covenants, conditions or
               provisions of this Lease to be observed or performed by Tenant, other than
               described in paragraph (b) above, where such failure shall continue for a period
               of five (5) business days after written notice thereof from Landlord to Tenant;
               provided, however, that if the nature of Tenant’s default as determined by
               Landlord is such that more than five (5) business days are reasonably required
               for its cure, then Tenant shall not be deemed to be in default if Tenant
               commences such cure as soon as possible within said five (5) business day period
               and thereafter diligently prosecutes such cure to completion, provided further
               that Tenant’s obligation to perform any act under this Lease shall be
               excused for any period of time during which Tenant is prevented from performing
               because of any circumstances beyond Tenant’s control; 

               

     	(d) 	
          (i) The insolvency of the Tenant or the execution by the Tenant of an assignment
          for the benefit of creditors, or the convening by Tenant of a meeting of its
          creditors, or any class thereof, for the purposes of effecting a moratorium upon
          or extension or composition of its debts; or the failure of the Tenant to
          generally pay its debts as they mature; or (ii) the filing by or for
          reorganization or arrangement under any law relating to bankruptcy (unless in
          the case of a petition filed against Tenant, the same is dismissed within sixty
          (60) days); or (iii) the appointment of a trustee or receiver to take possession
          of substantially all of Tenant’s assets located at the Premises or of
          Tenant’s interest in this Lease, where possession is not restored to Tenant
          within thirty (30) days; or (iv) the attachment, execution or other judicial
          seizure of substantially all of Tenant’s assets located at the Premises or
          of Tenant’s interest in this Lease, where such seizure is not discharged
          within thirty (30) days. 

          

	  	
17.2     
Remedies in Default. (a) In the event of any such default or breach by Tenant,
Landlord shall have the right at any time thereafter, with or without notice or demand and
without limiting Landlord in the exercise of any right or remedy which Landlord may
otherwise have by reason of such default or breach, to terminate this Lease at its option
or to re-enter and at its option to attempt to re-let without terminating this Lease and
remove all persons and property from the Premises, using any force as may reasonably be
necessary to accomplish said purposes, all without service of notice or resort to legal
process and without being deemed guilty of trespass or forcible entry or becoming liable
for any loss or damage which may be occasioned thereby. 

          		        (b)       
               If Tenant shall fail to remove any effects which it is entitled to remove from
               the Premises upon the termination of this Lease, or any extension or renewal
               hereof, or upon a re-entry by Landlord for any cause whatsoever, or upon
               Tenant’s ceasing to possess the Premises for any reason, the Landlord, at
               its option, may remove the same and 

               

-16-

          		store or dispose of the said effects without
               liability for loss or damage thereto, and Tenant agrees to pay to Landlord on
               demand any and all expenses incurred in such removal, including Court costs,
               attorneys fees, storage and insurance charges on such effects for any length of
               time the same shall be in Landlord’s possession; or the Landlord, at its
               option, without notice, may sell such effects, or any of them, at private or
               public sale and without legal process, for such price or consideration as the
               Landlord may obtain, and apply the proceeds of such sale upon any amounts due
               under this Lease from the Tenant to the Landlord, and upon the expenses
               incidental to the removing, cleaning the Premises, selling said effects, and any
               other expense, rendering the surplus, if any, to the Tenant; provided, however,
               in the event the proceeds of such sale or sales are insufficient to reimburse
               the Landlord, Tenant shall pay such deficiency upon demand. Tenant acknowledges
               and agrees that any such disposition of Tenant’s property in the
               above-described manner by the Landlord shall be deemed to be commercially
               reasonable and that no bailment shall be created by Landlord’s exercise of
               any of its rights under this subparagraph (b). 

               

          		        (c)       
               Should Landlord elect to re-enter, as herein provided, or should it take
               possession pursuant to legal proceedings, or pursuant to any notice provided for
               by law, it may make such alterations, additions, improvements and repairs as may
               be necessary in order to re-let the Premises, and may but need not re-let the
               Premises or any part thereof for such term or terms (which may be for a term
               extending beyond the term of this Lease) and at such rental or rentals and upon
               such other terms and conditions as Landlord may determine to be advisable; upon
               each such re-letting all rentals received by the Landlord; shall be applied i)
               first to the payment of any costs and expenses of such re-letting, including
               brokerage fees and attorney’s fees and the cost of such alterations,
               additions, improvements and repairs; ii) second, to the payment of Base Rent due
               and unpaid hereunder, and the residue, if any, shall be held by Landlord and
               applied in payment of future rent as the same may become due and payable
               hereunder provided that Tenant shall have no right to claim any interest in all
               or any portion of said residue and if the rent and other charges paid or to be
               paid to Landlord by any new tenant pursuant to any re-letting exceed the
               monetary obligations of Tenant, Tenant shall have no right to claim any interest
               in all or any portion of said excess. If such rental received from such
               re-letting during any month be less than that to be paid during the month by
               Tenant hereunder, Tenant shall pay any such deficiency to Landlord, and such
               deficiency shall be calculated and paid monthly on the date on which the rent
               would have been payable hereunder if possession had not been retaken. If, during
               the existing term of this Lease, the premises covered thereby include other
               premises not part of the Premises, a fair apportionment of the rent received
               from such re-letting and the expenses incurred in connection therewith as
               provided aforesaid will be made in determining the net proceeds from such
               re-letting and the expenses incurred in connection therewith as provided
               aforesaid will be made in determining the net proceeds from such re-letting, and
               any rent concessions will be equally apportioned over the term of the new lease.
               Landlord shall in no event be liable in any way whatsoever for failure to re-let
               the Premises for any reason, or in the event the Premises are re-let, for
               failure to collect the rent thereof under such re-letting. No such reentry or
               taking possession of the Premises by Landlord, nor any acts pursuant thereto,
               shall be construed as an election on its part to terminate this Lease unless a
               written notice of such termination be given to Tenant by Landlord. No notice
               from Landlord under this Lease or under any applicable forcible entry and
               detainer or eviction statue or similar law shall constitute an election by
               Landlord to terminate this Lease unless such notice specifically so states.
               Notwithstanding any such re-letting without termination, Landlord may at any
               time thereafter elect to terminate this Lease for such previous breach. 

               

          		        (d)       
               Should Landlord at any time terminate this Lease for any default or breach, in
               addition to any other remedies it may have, it may recover from Tenant all
               damages it may incur by reason of such default or breach, including the cost of
               recovering the Premises, reasonable attorneys fees, and including the worth at
               the time of such termination of the excess, if any, of the amount of rent and
               such other charges as are required to be paid by Tenant under the terms of this
               Lease for the remainder of the stated term over the then reasonable rental value
               of the Premises for the remainder of the stated term, all of which amounts shall
               be immediately due and payable from Tenant to Landlord; provided, however, that
               if the then reasonable rental value of the Premises exceeds the value of the
               rent and other charges required to be paid by Tenant under this Lease as
               aforesaid, Tenant shall have no right to claim any interest in all or any
               portion of such excess. In determining the rent which would be payable by Tenant
               hereunder, subsequent to default, the annual rent for each year of the unexpired
               term shall be equal to the average annual Base Rent and Additional Rent paid or
               payable by Tenant from the Commencement Date of this Lease to the time of
               default, or during the preceding three (3) full calendar years, whichever is
               shorter; and 

               

          		        (e)       
               Each of the remedies set forth hereinabove in this Section 17 shall not be
               exclusive, but rather shall be considered cumulative with any other legal or
               equitable 

               

-17-

          		remedy now or hereafter available to Landlord under the laws or
               judicial decisions of the state in which the Premises are located. To the extent
               such waiver is permitted by law, the parties waive trial by jury in any action
               or proceeding brought in connection with this Lease. Suit or suits for the
               recovery of the amount of damages set forth hereinabove may be brought by
               Landlord, from time to time, at Landlord’s election, and nothing herein
               shall be deemed to require Landlord to await the date whereon this Lease or the
               term hereof would have expired had there been no event of default. Nothing
               contained in this Lease shall limit or prejudice the right of Landlord to prove
               and obtain as liquidated damages in any bankruptcy, insolvency, receivership,
               reorganization or dissolution proceeding an amount equal to the maximum allowed
               by any statue or rule of law governing such proceeding and in effect at the time
               when such damages are to be proved, whether or not such amount be greater, equal
               to or less than the amounts recoverable, either as damages or rent, referred to
               in any of the preceding provisions of this Section. 

               

	  	
17.3     
Default by Landlord. Landlord shall not be in default unless Landlord fails to
perform obligations required of Landlord within twenty (20) days after written notice by
Tenant to Landlord specifying the manner in which Landlord has failed to perform such
obligation; provided however, that if the nature of Landlord’s obligation is such
that more than twenty (20) days are required for performance as determined by Landlord,
then Landlord shall not be in default if Landlord commences performance within such twenty
(20) day period and thereafter diligently prosecutes the same to completion; provided
further that Landlord’s obligation to perform any act under this Lease shall be
excused for any period of time during which Landlord is prevented from performing because
of any circumstance beyond Landlord’s control. Section 18.3 and 25.2 below further
limit tenant’s remedies upon Landlord’s default. 

	  	
17.4     
Late Charges. Tenant hereby acknowledges that late payment by Tenant to Landlord of
rent and other sums due hereunder will cause Landlord to incur costs not contemplated by
this Lease, the exact amount of which will be extremely difficult to ascertain. Such costs
include, but are not limited to, processing and accounting charges, and late charges which
may be imposed on Landlord by the terms of any mortgage or trust deed covering the
Premises. Accordingly, if any installment of Base Rent, Additional Rent or any other sum
due from Tenant shall not be received by Landlord or Landlord’s designee within ten
(10) days after paid amount is due, then Tenant shall immediately pay to Landlord a late
charge equal to five percent (5%) of such over due amount or the sum of One Hundred
Dollars ($100.00), whichever is greater. The parties hereby agree that such late charge
represents a fair and reasonable estimate of the cost Landlord will incur by reason of
late payment by Tenant. Acceptance of such late charge by Landlord shall in no event
constitute a waiver of Tenant’s default with respect to such overdue amount, or
prevent Landlord from exercising any of the other rights and remedies granted hereunder. 

	18. 
	 RIGHTS OF MORTGAGEE. 

	  	
18.1     
Subordination. As used throughout this Section 18, the term “mortgagee”
shall refer to the holder of a Mortgage or deed of trust or ground lease affecting the
Premises. This Lease and the rights of Tenant hereunder shall be and are hereby made
subject and subordinate to the provisions of any ground lease, mortgage or deed of trust
affecting the Premises, and to each advance made or hereafter to be made under the same,
and to all renewals, modifications, consolidations and extensions thereof and all
substitutions therefor. This Section 18 shall be self-operative and no further instrument
of subordination shall be required. However, in confirmation of the provisions of this
Section 18, Tenant shall execute and deliver promptly any certification or instrument that
Landlord or any mortgagee may request, and failing to do so within ten (10) days after
written demand, Tenant does hereby make, constitute and irrevocably appoint Landlord as
Tenant’s attorney-in-fact and Tenant’s name, place and stead, to do so, and/or
Landlord may declare this Lease to be in default. If any mortgagee or ground lessor shall
elect to have this Lease prior to the lien of its mortgage, deed of trust or ground lease,
and shall give written notice thereof to Tenant, this Lease shall be deemed prior to such
mortgage, deed of trust or ground lease, whether this Lease is dated prior or subsequent
to the date of said mortgage, deed of trust or ground lease or the date of recording
thereof. Tenant shall and does hereby agree to attorn to any mortgagee or successor in
title and to recognize such mortgagee or successor as its Landlord in the event any such
person or entity succeeds to the interest of Landlord. Notwithstanding any other provision
of this Lease, in the event that any mortgagee or its respective successor in title shall
succeed to the interest or Landlord hereunder, the liability of such mortgagee or
successor shall exist only so long as it is the owner of the Building, or any interest
therein, or is the tenant under said ground lease. 

	  	
18.2     
Mortgagee’s Consent to Amendments. No assignment of this Lease and no
agreement to make or accept any surrender, termination or cancellation of this Lease and
no agreement to modify so as to reduce the rent, change the term, or otherwise materially

-18-

	  	
change the rights of Landlord under this Lease, or to relieve Tenant of any obligation or
liability under this Lease, shall be valid unless consented to by Landlord’s
mortgagees of record, if such is required by the mortgagees, in writing. 

	  	
18.3     
Mortgagee’s Right to Cure. No act or failure to act on the part of Landlord
which would entitle Tenant under the terms of this Lease, or by law, to be relieved of
Tenant’s obligations hereunder or to terminate this Lease, shall result in a release
or termination of such obligations or termination of this Lease unless (a) Tenant shall
have first given written notice of Landlord’s act of failure to act to
Landlord’s mortgagees of record, if any, specifying the act or failure to act on the
part of Landlord which could or would give basis to Tenant’s rights; and (b) such
mortgagees, after receipt of such notice, have failed or refused to correct or cure the
condition complained of within a reasonable time thereafter, provided that nothing
contained in this Section shall be deemed to impose any obligation on any such mortgagees
to correct or cure any condition. As used herein, a “reasonable time” includes a
reasonable time to obtain title to the mortgaged premises if the mortgagee elects to do so
and a reasonable time to correct or cure the condition if such condition is determined to
exist, but in no event less than thirty (30) days from the date of the mortgagees’
receipt of the above described notice. 

	19. 
	 NOTICES. 

	  	
Except
as provided in Section 17.2(a) and 22, whenever under this lease provision demand is made
for any notice or declaration of any kind, or where it is deemed desirable or necessary by
either party to give or serve any such notice, demand or declaration to the other party,
it shall be in writing and served either personally or sent by certified United States
mail, return receipt requested, postage prepaid, addressed either to the address set forth
in Section 1.1 or 1.11(b), or to such other address as may be given by a party to the
other by proper notice hereunder, or, in the case of notices to the Tenant, to the
Premises. The date of personal delivery (as evidenced by such evidence of service as
provided for in said rules) or the date on which the certified mail is deposited with the
United States Postal Service shall be the date on which any proper notice hereunder shall
be deemed given. 

	20. 
	 RELOCATION.   OMITTED 

	21. 
	 QUIET POSSESSION.

	  	
Upon
Tenant paying the sums due hereunder and observing and performing all of the covenants,
conditions and provisions on Tenant’s part to be observed and performed hereunder,
Tenant shall have quiet possession of the Premises for the entire term hereof subject to
all of the provisions of this Lease. 

	22. 
	OPTIONS.

	  	
Provided
Tenant has at all times timely paid its rent obligation and is not in default under the
Lease beyond any applicable grace period for the cure thereof, Tenant shall have the right
at its option by notice to Landlord no less than six (6) months prior to the expiration of
the term of this Lease to extend its tenancy for one (1) additional, five (5) year period,
the “Option Period”, under all of the same terms and conditions contained herein
except that the Base Rent base rent shall increase by the percentage change in the
Consumer Price Index, as set forth below. 

	  	
Beginning
with the rent due January 1, 2011, base rent will be adjusted by the change in the
Consumer Price Index. Tenant shall pay to Landlord, as additional rent, the amounts
computed as hereinafter provided. 

               		(a)        

                     The Consumer Price Index of the United States Bureau of Labor Statistics for
                    all urban consumers, New York, Northern New Jersey, Long Island, New York, New
                    Jersey and Connecticut, is hereinafter call “the Index”. If the Index
                    is no longer published by the Department of Labor, Landlord may select a
                    comparable government statistical service as a replacement. 

               		(b)        

                     The Index for December 2010, the last month of the Rental Period then ending,
                    (“Prior Rental Period”), shall be divided by the Index for January,
                    2006, the first month of the Prior Rental Period and expressed as a percent.
                    From this number, a figure of 100% will be deducted to arrive at the Percentage
                    Rent Increase. (A decrease in the Percentage Rent Increase shall be considered
                    zero percent.) 

               		(c)        

                     The rent for the upcoming Rental Period shall be the rent during the Prior
                    Rental Period multiplied by the Percentage Rent Increase, added to the rent of
                    the Prior Rental Period. 

               		(d)        

                     For example, if the Index for January, 2006 was 200, and the Index for
                    December, 2011 was 225, then the Percentage Rent Increase would be 12.5%

                    

-19-

               		
                    (210/200 = 112.50%, less 100% = 12.5%). If the monthly base rent for the Prior
                    Rental Period was $12,678.75.00, then the monthly base rent for the Option
                    Period would be $14,263.6. 

                    

	  	
This
Option is personal to Tenant and may not be exercised by or assigned, voluntarily or
involuntarily, by or to anyone other than Tenant. No such option described hereinabove may
be exercised by the Tenant except in strict accordance with the terms and provisions of
the option and provided that Tenant is not in default under this Lease either at the time
Tenant gives notice of its intent to exercise the option or at the time at which the
option is to be exercised. Notwithstanding the provisions of Section 19, notice of
exercise of any option shall be deemed given only when actually received by Landlord. 

	23. 
	LANDLORD’S LIEN.

	  	        Tenant
hereby grants to Landlord a lien upon and security interest in all furniture, fixtures,
equipment, inventory, merchandise and other personal property belonging to the Tenant and
located in, on or about the Premises or Building at any time while this Lease is in
effect, whether such items are presently owned by Tenant or are after acquired, to secure
the payment of all Base Rent, Additional Rent and other charges due and to become due
under this Lease and to further secure the faithful performance of all of the other
obligations of this Lease required to be performed by Tenant, said lien to be prior to any
other lien on such property except a lien in favor of the seller or lessor of such
property to secure the unpaid purchase price or lease payments thereof. Tenant hereby
expressly waives all exemption laws. This lien and security interest may be foreclosed in
the same manner as a Financing Statement under the version of the Uniform Commercial Code
enacted in the state in which the Premises are situated, or pursuant to any similar law so
enacted if a version of the Uniform Commercial Code is not in effect, and the filing of
this Lease in accordance with said law shall constitute full lawful notice of this lien.
In lieu of filing this Lease or in addition thereto, Landlord may require Tenant at any
time to execute a Financing Statement, Security Agreement or any other similar documents
required by the laws of the state in which the Premises are situated to perfect this lien
and security interest, and Tenant shall immediately execute the same upon the demand of
Landlord. In the event Tenant fails or refuses to do so within ten (10) days after written
demand, Tenant does hereby make, constitute and irrevocably appoint Landlord as
Tenant’s attorney-in-fact in Tenant’s name, place and stead, to do so, and/or
Landlord may declare this Lease to be in default. 

	24. 
	HAZARDOUS MATERIALS.

	  	
Tenant
covenants not to introduce any hazardous or toxic materials onto the Building, the
Premises, or the grounds surrounding the Building, without (a) first obtaining
Landlord’s written consent and (b) complying with all applicable federal, state and
local laws or ordinances pertaining to the transportation, storage, use or disposal of
such materials, including but not limited to obtaining proper permits. 

	  	
If
Tenant’s transportation, storage, use or disposal of hazardous or toxic materials on
the Building, the Premises, or the grounds surrounding the Building results in (1)
contamination of the soil or the surface or ground water or (2) loss or damage to
person(s) or property, then Tenant agrees to respond in accordance with the following
paragraph: 

	  	
Tenant
agrees (i) to notify Landlord immediately of any contamination, claim of contamination,
loss or damage, (ii) after consultation and approval by Landlord, to clean up and (iii) to
indemnify, defend and hold Landlord harmless from and against any claims, suits, causes of
action, costs and fees, including attorney’s fees, arising from or connected with any
such contamination, claim of contamination, loss or damage. This provision shall survive
the termination of this Lease. 

	25. 
	GENERAL PROVISIONS.

	  	
25.1     
Estoppel Certificate. (a) Tenant shall at any time upon not less than ten (10) days
prior written notice from Landlord, execute, acknowledge and deliver to Landlord a
statement in writing: (i) certifying that this Lease is unmodified and in full force and
effect (or, if modified, stating the nature of such modification, identifying the
instruments of modification and certifying that this Lease, as so modified, is in full
force and effect), and the date to which the Base Rent, security deposit, Additional Rent
and other charges are paid in advance, if any, and (ii) acknowledging that there are not,
to Tenant’s knowledge, any uncured defaults on the part of Landlord hereunder, or
specifying such defaults, if any, which are claimed. Any such statement may be
conclusively relied upon by any prospective purchaser, encumbrancer or other transferee of
the Premises. 

-20-

          		        (b)       
               Tenant’s failure to deliver such statement within such time shall be
               conclusive upon Tenant: (i) that this Lease is in full force and effect, without
               modification except as may be represented by Landlord, (ii) that there are no
               uncured defaults in Landlord’s performance, and (iii) that no rent has been
               paid in advance; and 

               

          		        (c)       
               If Landlord desires to finance or refinance the Premises or the Building, or any
               part thereof, Tenant hereby agrees to deliver to Landlord and/or to any lender
               designated by Landlord such financial records of Tenant as may be reasonably
               required by such lender. Such statements may include but not be limited to the
               past three (3) years’ financial statements of Tenant. All such financial
               statements shall be received by Landlord in confidence and shall be used only
               for the purposes herein set forth. 

               

	  	
25.2     
Landlord’s Interest and Liability. The term “Landlord” as used
herein shall mean only the owner or owners at the time in question of the fee title or a
tenant’s interest in a ground lease of the real property on which the improvements
comprising the Building are situated. In the event of any transfer of such title or
interest, Landlord herein named (and in case of any subsequent transfers the then
grantor), shall be relieved from and after the date of such transfer of all liability as
respects Landlord’s obligations thereafter to be performed, provided that any funds
in the hands of Landlord or the then grantor at the time of such transfer in which Tenant
has an interest shall be delivered to the grantee. The obligations contained in this Lease
to be performed by Landlord shall, except as aforesaid, be binding on Landlord’s
successors and assigns only during their respective periods of ownership. Anything to the
contrary elsewhere in this Lease notwithstanding, Tenant shall look solely to the estate
and property of the Landlord in the Building for the satisfaction of the Tenant’s
remedies for the collection of a judgment (or other judicial process) requiring the
payment of money by the Landlord in the event of any default or breach by the Landlord
with respect to any of the terms, covenants and conditions of the Lease to be observed
and/or performed by the Landlord, and no other property or assets of the Landlord shall be
subject to levy, execution or other enforcement procedure for the satisfaction of the
Tenant’s remedies. 

	  	
25.3     
Severability. The invalidity of any provision of this Lease, as determined by a
court of competent jurisdiction, shall in no way affect the validity of any other
provision hereof. 

	  	
25.4     
Interest on Past Due Obligations; Certified Funds. In the event that either Tenant
is more than ten (10) days late in making any payment due under the Lease, or any payment
from Tenant to Landlord does not clear the bank or is returned for insufficient funds, and
either such condition occurs on two or more occasions, or each occurs once, Landlord shall
have the right at any time thereafter to require that all succeeding monthly installments
of Base Rent and all succeeding payments of Additional Rent be paid to the Landlord in
certified funds drawn on a bank located in the metropolitan area in which the Premises are
located. Said right may be exercised by Landlord by giving notice of such requirements to
Tenant, but the giving of such notice and the exercise of this right by Landlord shall not
be construed to be a waiver of any default by Tenant or any other right which Landlord may
exercise under this Lease. 

	  	
25.4     
Time of The Essence.  Time is of the essence in the performance by Tenant of its obligations hereunder.

	  	
25.5     
Captions. Any captions contained in this Lease are not a part hereof, are for
convenience only, and are not to be given any substantive meaning in construing this
Lease. 

	  	
25.6     
Entire Agreement. This Lease contains the entire agreement and understanding
between the parties hereto. There are no oral understandings, terms, or conditions, and
neither party has relied upon any representations, express or implied, not contained in
this Lease. All prior understandings, terms, or conditions are deemed merged in this
Lease. No modification of this Lease shall be binding unless such modification shall be in
writing and signed by the parties hereto. Tenant acknowledges that it has not been induced
to enter into this Lease by any promises or representations not expressly set forth in
this Lease, and if any such representations were made prior to the execution of this
Lease, Tenant acknowledges that it has not relied on the same, and that Landlord shall
have no liability with respect to any such representations. 

	  	
25.7     
Waivers. No failure by either party to insist upon the strict performance of any
agreement, term, covenant or condition hereof or to exercise any right or remedy
consequent upon a breach thereof, and no acceptance of full or partial rent or the
continuance of any such breach, shall constitute a waiver of any such breach of such
agreement, term, covenant or condition or a relinquishment of the right to exercise such
right or remedy. No agreement, term, covenant or condition hereof to be performed or

-21-

	  	
complied with by either party, and no breach thereof, shall be waived, altered or modified
except by a written instrument executed by the other party. No waiver of any breach shall
affect or alter this Lease, but each and every agreement, term, covenant or condition
hereof shall continue in full force and effect with respect to any other then existing or
subsequent breach thereof. Notwithstanding any termination of this Lease, the same shall
continue in force and effect as to any provisions of the Lease, including remedies, which
require or permit observance or performance of Landlord or Tenant subsequent to
termination. 

         25.       
          Recording. Tenant shall not record this Lease. Any such recordation by
          Tenant shall be a breach of this Lease. 

	  	
25.9     
Determinations by Landlord. Whenever in this Lease the Landlord is to make any
determination or decision, the Landlord shall make its determination or decision in the
exercise of its reasonable discretion and judgment; however, any such determination or
decision shall not bind the Landlord if it has not been confirmed in writing. 

	  	
25.10     
Cumulative Remedies. No remedy or election by Landlord hereunder shall be deemed
exclusive, but shall wherever possible be cumulative with all other remedies at law or in
equity to which Landlord may be entitled. 

	  	
25.10     
Covenants and Conditions. Each provision of this Lease performable by Tenant shall
be deemed both a covenant and a condition. 

	  	
25.12      
Binding Effect; Choice of Law. Subject to any provisions hereof restricting
assignment, subletting or transfer by Tenant and subject to the provisions of Section
25.2, this Lease shall bind the parties, their personal representatives, heirs, successors
and assigns. This Lease shall be governed by the laws of the state where the Premises are
located. 

	  	
25.13     
Attorneys Fees. In the event of litigation relating to this Lease, the prevailing
party shall be entitled to recover from the losing party any costs or reasonable attorneys
fees incurred by the prevailing party in connection with such litigation. If Landlord
utilizes the services of an attorney to enforce any of its rights hereunder but which does
not result in the bringing of an action, Tenant shall immediately pay to Landlord upon
demand therefor the amount of such attorneys fees incurred. 

	  	
25.14     
Landlord’s Access. Landlord and Landlord’s agents, representatives and
designees shall have the right to enter the Premises as reasonably necessary or desirable
to Landlord for the purpose of inspecting the same, showing the same to prospective
purchasers, tenants, lenders or other transferees, making such alterations, repairs,
improvements or additions to the Premises or to the Building as Landlord may deem
necessary or desirable, or for any other reasonable purpose as Landlord may determine.
Landlord may at any time place in, on or about the Premises any “For Sale”, or
“For Lease” or similar signs, all without rebate of rent or liability to Tenant. 

	  	
25.15     
Auctions. Tenant shall not conduct any auction, liquidation sale, or going out of
business sale in, on or about the Premises. 

	  	
25.16     
Merger. The voluntary or other surrender of this Lease by Tenant, or a mutual
cancellation thereof, shall not work a merger, and shall, at the option of the Landlord,
terminate all or any existing subtenancies or may, at the option of Landlord, operate as
an assignment to Landlord of any or all of such subtenancies. 

	  	
25.17     
Authority. If Tenant is a corporation, each individual executing this Lease on
behalf of said corporation represents and warrants that he is duly authorized to execute
and deliver this Lease on behalf of said corporation in accordance with a duly adopted
resolution of the Board of Directors of said corporation or in accordance with the Bylaws
of said corporation, and that this Lease is binding upon said corporation in accordance
with its terms. 

	  	        If
Tenant is a division or subsidiary of a corporation, each individual executing this
Agreement on behalf of the division or subsidiary represents and warrants that he or she
is duly authorized to execute and deliver this Agreement on behalf of the division or
subsidiary, in accordance with a duly adopted resolution of the Board of Directors of the
parent corporation, that this Agreement is binding upon the parent corporation (as well as
the division or subsidiary) in accordance with its terms, and that said division or
subsidiary shall, within (30) days after request by Landlord, deliver to Landlord a
certified copy of a resolution ratifying the execution of this Agreement. 

-22-

	  	
If
Tenant is a partnership, each individual executing this Agreement on behalf of said
partnership represents and warrants that he or she is duly authorized to sign and deliver
this Agreement on behalf of said partnership and that this Agreement is binding upon said
partnership in accordance with its terms. 

	  	
25.18     
Signs. Landlord may prescribe a uniform pattern of identification signs for tenants
to be place on the outside of the doors leading into their respective premises, and other
than such identification signs, Tenant shall not install, paint, display, inscribe, place
or affix, or otherwise attach, any sign, fixture, advertisement, notice, lettering or
direction on any part of the outside of the Building or in the interior or other portion
of the Building without obtaining the prior written consent of the Landlord. 

	  	
25.20      
Brokers. The parties hereto acknowledge that the brokers named in Section 1.19 were
the sole real estate brokers that represented the Landlord herein, and that Landlord owes
no commissions to any other brokers whatsoever, and Tenant agrees to indemnify Landlord
from claims for commission from any other brokers arising out of the execution of this
Lease if such brokers were contacted by Tenant. 

	  	
25.19      
Guarantor. In the event that there is a guarantor of this Lease, said guarantor
shall have the same obligations as Tenant under this Lease. 

	  	
25.20      
Governing Law. This lease shall be governed by and construed in accordance with the
laws of the state in which the Building is located. 

	  	
25.21      
Joint and Several Liability. If two or more individuals, corporations, partnerships
or other business associates (or any combination of two or more thereof) shall sign this
Lease as Tenant, the liability of each such individual, corporation, partnership or other
business association to pay rent and perform all other obligations hereunder shall be
deemed to be joint and several, and all notices, payments and agreements given or made by,
with or to any one of such individuals, corporations, partnerships or other business
associations shall be deemed to have been given or made by, with or to all of them. In
like manner, if Tenant shall be a partnership or other business association, the members
of which are, by virtue of statute or federal law, subject to personal liability, the
liability of each such member be joint and several. 

	  	
25.22      
No Joint Venture. Any intention to create a joint venture or partnership relation
between the parties hereto is hereby expressly disclaimed. 

	  	
25.23      
Hazardous Waste — The term “Hazardous Materials”, as used in this Lease
shall mean pollutants, contaminants, toxic or hazardous wastes, or any other substances,
the use and/or the removal of which is required or the use of which is restricted,
prohibited or penalized by an “Environmental Law”, which term shall mean any
federal, state or local law, ordinance or other statute of a governmental or
quasi-governmental authority relating to pollution or protection of the environment.
Tenant hereby agrees that (i) no activity will be conducted on the Premises that will
produce any Hazardous Substance, except for such activities that are part of the ordinary
course for Tenant’s business activities (the “Permitted Activities”)
provided said Permitted Activities are conducted in accordance with all Environmental Laws
and have been approved in advance in writing by Landlord; Tenant shall be responsible for
obtaining any required permits and paying any fees and providing any testing required by
any governmental agency; (ii) the Premises will not be used in any manner for the storage
of any Hazardous Substances except for the storage of such materials that are used in the
ordinary course of Tenant’s business (“Permitted Materials”) provided such
Permitted Materials are properly stored in a manner and location meeting all Environmental
Laws and approved in advance in writing by Landlord; Tenant shall be responsible for
obtaining any required permits and paying any fees and providing any testing required by
any governmental agency; (iii) no portion of the Premises will be used as a landfill or a
dump; (iv) Tenant will not install any underground tanks of any type; (v) Tenant will not
allow any surface or subsurface conditions to exist or come into existence as a result of
Tenant’s actions or the conduct of Tenant’s business on the Leased Premises that
constitute or with the passage of time may constitute a public or private nuisance; (vi)
Tenant will not permit any Hazardous Substances to be brought onto the Premises, except
for the Permitted Materials described below, or hereafter approved in writing by Landlord
and if so brought or found located thereon, the same shall be immediately removed, with
proper disposal, and all required cleanup procedures shall be diligently undertaken
pursuant to all Environmental Laws. Landlord or Landlord’s representative shall have
the right but not the obligation to enter the Premises for the purposes of inspecting the
storage, use and disposal of Permitted Materials to ensure compliance with all
Environmental Laws. Should it be determined, in Landlord’s sole opinion, that said
Permitted Materials are being improperly stored, used, or disposed of, then Tenant shall
immediately take such corrective action within twenty four (24) hours,

-23-

	  	
 Landlord shall have
the right to perform such work and Tenant shall promptly reimburse Landlord for any and
all costs associated with said work. If at any time during or after the term of the Lease,
the Premises are found to be so contaminated or subject to said conditions, and such
contamination is caused by Tenant or the conduct of its business on the Premises, Tenant
shall diligently institute proper and thorough cleanup procedures at Tenant’s sole
cost, and Tenant agrees to indemnify, save and hold Landlord harmless from all and against
claims, demands, actions, liabilities, costs, expenses, damages and obligations of any
nature arising from or as a result of the use of the Premises by Tenant, and regardless of
whether or not Landlord is found to be solely, concurrently, or jointly negligent with
Tenant. The foregoing indemnification and the responsibilities of Tenant shall survive the
termination or expiration of this Lease. Anything contained herein to the contrary
notwithstanding, Landlord shall not unreasonably withhold its consent with respect to the
use, storage, generation or manufacturing of Hazardous Substances on or about the Leased
Premises provided same is done in the ordinary course of Tenant’s business, and in
compliance with all environmental laws. 

	  	
26.      Right of First Refusal: Tenant shall have a right of first refusal on
                    the remaining office space located in 7 Kingsbridge Road (the “Adjacent
                    Space”). Upon receiving notice from the current occupant of the Adjacent
                    Space that it intends to vacate the space, Landlord will notify Tenant. Landlord
                    will offer the space to the tenant at the market rate in effect at that time.
                    Tenant will have five (5) business days within which to decide whether or not it
                    intends to take the space. If it decides to take the space, Tenant shall notify
                    Landlord of its decision, and Tenant shall pay the first month’s rent for
                    the Adjacent Space to Landlord within five (5) days of its having notified
                    Landlord. 

                    

        The
parties hereto have executed this Lease on the second page hereof on the dates specified
immediately below their respective signatures. 

        THE
REMAINDER OF THIS PAGE HAS INTENTIONALLY BEEN LEFT BLANK. 

-24-

Exhibit A 

Legal description 

-25-

EXHIBIT B, TO OFFICE BUILDING
LEASE 

PREMISES SITE PLAN 

 

-26-

EXHIBIT C 

LANDLORD WORK LETTER 

	1. 
	 HVAC – A/C and Heat shall be properly balanced, all thermostats shall be
          operational, and adequate controls shall be distributed through out the Leased
          Premises 

	2. 
	BATHROOMS – New tile floor, wall covering on walls, new
          countertops, new mirrors and new hardware through out the bathroom. Re-use
          existing partitions.  

	3. 
	Paint entire Leased Premises  

	4. 
	All hallways to be re-carpeted   

	5. 
	New carpeting
          in executive area – secretary area and Mr. Perez’ office.  

	6. 
	 Wall
          covering in Mr. Perez’ office  

	7. 
	Erect wall and install access in small
          conference room, to block transformer.  

-27-

EXHIBIT D, PARKING
ADDENDUM OF OFFICE BUILDING LEASE 

This
schedule is made a part of the attached Lease. 

Rules and Regulations
for Automobile Parking 

As per Page 1, paragraph 1, of this
agreement the Tenant is entitled to 22 unassigned parking spaces. 

             1.       
          Tenant may only use the parking spaces during tenant’s regular business
          hours. 

             2.       
          The parking spaces are only to be used for the parking of a passenger
          automobile/van. At the discretion of the Landlord and effective immediately,
          after written notification to Tenant, the space assigned to Tenant may be
          changed from time to time during the term of this Lease. 

             3.       
          The Landlord is under no duty to render any services of any kind concerning the
          vehicle(s) or its maintenance while the same is stored in the garage. 

             4.       
          The Landlord shall not be liable for damage to the vehicle(s) or for theft of
          the vehicle(s) or any parts thereof, or of its contents. The intention is that
          the Landlord shall have no liability regarding the vehicle(s) or its contents,
          to the fullest extent of the law. 

             5.       
          The Tenant agrees to carry insurance at the Tenant’s own cost for theft and
          damage to the vehicle(s) and its contents, by fire or otherwise, including
          liability coverage for injuries or property damage to others while this Lease is
          in force. 

             6.       
          The Tenant shall not carry nor store any unlawful or hazardous goods or material
          in the vehicle(s) while parked in the parking lot. 

             7.       
          The Tenant shall under no circumstances service or make any repairs to the
          vehicle(s), nor use any oils or greases, while the vehicle(s) is in the parking
          lot, nor do so on the property of the Landlord. 

             8.    
          Tenant parking privileges shall terminate in conjunction with the Lease. 

             9.    
          Landlord agrees to illuminate parking lot every night at least until 12:00 AM 

             10.    
          Landlord shall not restrict Tenant from using available parking spaces during
          agent training events. 

-28-

EXHIBIT D, RULES AND
REGULATIONS 

TO OFFICE BUILDING LEASE 

It
is agreed that the following rules and regulations shall be and are hereby made a part of
this Lease, and the Tenant agrees that its employees and agents or any other persons
permitted by the Tenant to occupy or enter the Premises will at all times abide by these
rules and regulations. It is further agreed that a default in the performance and
observation of these rules and regulations shall operate the same as any other default
under this Lease. 

             1.       
          The sidewalks, entries, passages, and stairways shall not be obstructed by the
          Tenant or its agents, or used by them for any purpose other than ingress and
          egress to and from their offices. 

             2.       
          a.      Furniture, equipment, or supplies shall be moved in or out of the Building
          only during such hours and in such manner as may be prescribed by the Landlord. 

                        b.     
          No safe or article, the weight of which may constitute a hazard or danger to the
          Building or its equipment, shall be moved into the Premises. Safes and other
          equipment, the weight of which is not excessive, shall be moved into, from or
          about the Building during such hours and in such manner as shall be prescribed
          by the Landlord, and the Landlord shall have the right to designate the location
          of such articles in the space hereby demised. 

             3.       
          The name of the Tenant and/or signs of the Tenant shall not be placed upon any
          part of the Premises except as provided by the Landlord. 

             4.       
          Water closets and other water fixtures shall not be used for any purpose other
          than that for which the same are intended, and any damage resulting to the same
          from misuse on the part of the Tenant, its agents or employees, shall be paid
          for by the Tenant. No person shall waste water by tying back or wedging the
          faucets or in any other manner. 

             5.       
          No animals shall be allowed in the office, halls, or corridors of the Building. 

             6.       
          Bicycles or other vehicles shall not be permitted in the offices, halls, or
          corridors of the Buildings, nor shall any obstruction of sidewalks of entrances
          of the Building by such be permitted. 

             7.       
          No person shall disturb the occupants of the Building or adjoining buildings or
          premises by the use of any television, radio, or musical instrument or
          equipment, or by the making of loud or improper noises. 

             8.       
          No additional lock or locks shall be placed by the Tenant on any door in the
          Building unless written consent of the Landlord shall first be obtained. 

             9.       
          The use of oil, gas or inflammable liquids for heating, lighting, or any other
          purpose is expressly prohibited. Explosives or other articles deemed extra
          hazardous shall not be brought into the Building. 

             10.       
          The Tenant shall exercise due care and within reasonable limits shall not mark
          upon, paint or affix upon, cut, drill into, drive nails or screws into, or in
          any way deface the walls, ceiling, partitions, or floors of the Premises or of
          the Building, and any defacement, damage, or injury caused by the Tenant, its
          agents or employees, shall be paid for by the Tenant. 

             11.       
          The Landlord shall at all times have the right by its officers or agents to
          enter the Premises to inspect and examine the same and to show the same to
          persons wishing to lease, purchase, or mortgage them. 

             12.       
          The Tenant agrees to use chair pads to be furnished by the Tenant under all
          rolling and ordinary desk chairs in the carpeted areas of the Premises
          throughout the term of this Lease. 

             13.       
          The Landlord reserves the right to make such other and further reasonable rules
          and regulations as in its judgment may from time to time be necessary and
          desirable for the safety, care, and cleanliness of the Premises and for the
          preservation of good order therein. Such rules and regulations shall be
          effective upon receipt of changes and/or additions as provided by the provision
          for Notice, Section 19 of said Lease. 

-29-

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