Document:

Exhibit 10.1

 

 

 

 

AGREEMENT OF LEASE

BETWEEN 

240 PRINCETON TCI ASSOCIATES,
LLC,
AS LANDLORD 

AND 

VOXWARE INC.,
AS
TENANT 

 

 

 

 

 

	 	TABLE OF CONTENTS	 

	 		 	Page No.  
	1  	    
    	FUNDAMENTAL LEASE PROVISIONS  	1  
	2.  		DEMISED
      PREMISES/COMMON AREAS  	4  
	3.  		INITIAL TENANT IMPROVEMENTS  	4 
	4.  		DELAY IN
      POSSESSION  	7  
	5.  		RENT  	8  
	6.  		SECURITY
      DEPOSIT  	8  
	7.  		PAYMENT OF OPERATING EXPENSES  	10  
	7A.  		TAX
      PAYMENTS  	14  
	8.  		UTILITIES FURNISHED TO DEMISED PREMISES  	16  
	9.  		SERVICES  	17  
	10.  		CARE OF DEMISED PREMISES  	19  
	11.  		MECHANICS’
      LIENS  	20  
	12.  		REPAIRS AND MAINTENANCE  	20  
	13.  		SUBLETTING
      AND ASSIGNING  	20  
	14.  		FIRE OR CASUALTY  	22  
	15.  		EMINENT
      DOMAIN  	23  
	16.  	 	INSOLVENCY  	24  
	17.  		DEFAULT  	24  
	18.  		LANDLORD’S RIGHT TO CURE  	27  
	19.  		INSURANCE  	27  
	20.  		LIABILITY  	29  
	21.  		ENVIRONMENTAL
      MATTERS  	30  
	22.  		SUBORDINATION  	33  
	23.  		ESTOPPEL
      STATEMENT  	33  
	24.  		RESERVATION OF LANDLORD’S RIGHTS  	33  
	25.  		EXPIRATION OF
      TERM; HOLDING-OVER  	34  
	26.  		SECURITY INTEREST  	35  
	27.  		FINANCIAL
      STATEMENTS  	35  
	28.  		RENT, USE AND OCCUPANCY TAX  	35  
	29.  		QUIET
      ENJOYMENT  	35  
	30.  		NOTICES  	35  
	31.  		Deleted Prior
      to Execution  	35  
	32.  		MISCELLANEOUS  	35  
	33.  		PARKING  	38  
	34.  		OPTION TO RENEW  	38  
	35.  		INTENTIONALLY
      DELETED  	40  
	36.  		OFAC  	40  
	37.  		COMPLIANCE
      WITH LAWS  	41  
	38.  		AFFIRMATIVE WAIVER  	41  
	39.  		NO
      REPRESENTATIONS  	41  
	40.  		OFFERED SPACE OPTION  	41  
	41.  		AMERICANS
      WITH DISABILITIES ACT  	45  
	42.  		TENANT’S ALTERATIONS, IMPROVEMENTS AND
      PROPERTY  	46  
	43.  		DELIVERY FOR
      EXAMINATION  	48  
	44.  		BEIP TERMINATION RIGHT  	48  

i

	EXHIBIT A  	DEMISED PREMISES 	A-1
    
	EXHIBIT
      B  	SPACE
    PLAN	B 
	EXHIBIT B-1  	TENANT
      CONSTRUCTION STANDARDS 	B-1
    
	EXHIBIT
      C  	BUILDING RULES
      AND REGULATIONS	C-1 
	EXHIBIT D  	SPECIFICATIONS FOR JANITORIAL SERVICES 	D-1
    
	EXHIBIT
      E  	APPRAISAL
      PROVISIONS 	E-1 
	EXHIBIT F  	PROHIBITED USE 	F-1
    
	EXHIBIT
      G  	ALTERATIONS
      RULES AND REGULATIONS 	G-1

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AGREEMENT OF LEASE 

     THIS
AGREEMENT OF LEASE made this 3rd day
of December 2007 by and between 240 Princeton
TCI Associates, LLC, a New Jersey limited
liability company (hereinafter called “Landlord”), and Voxware Inc., a Delaware
corporation (hereinafter called “Tenant”). 

1. FUNDAMENTAL LEASE PROVISIONS.

     (a)
“Building”:
shall mean the building located at 300 American Metro Boulevard, Hamilton, New
Jersey 08619, and commonly known as “American Metro Center.” 

     (b)
“Building RSF”: shall mean the rentable square footage of the Building, which is
deemed to be 459,488 rentable square feet, as the same may be adjusted from time
to time. 

     (c)
“Property”:
shall mean the Building and the parcel(s) of land on which the Building is
located, together with all improvements thereon. 

     (d)
“Demised Premises” or “Premises”: shall mean the area identified on the plan attached hereto
as Exhibit “A”. The Demised Premises are located on the first (1st) floor of the
Building and are designated as Suite 

     (e)
“Tenant’s RSF”: shall mean the rentable square footage of the Demised Premises, which
is mutually agreed by Landlord and Tenant to be the stipulated amount of 9,473
rentable square feet.

     (f) “Annual Base Rent”: 

	Period (measured
      from the  	Annual
      Base  	Monthly
      Installment  	Base
      Rent/R.S.F  
	Commencement Date) 
    	Rent (Includes  	   	   
	  	Cleaning)  	   	   
	Months 1 through
      12    	$222,615.50  	$18,551.29  	$23.50  
	Months 13 through 24    	$227,352.00  	$18,946.00  	$24.00  
	Months 25 through 36    	$232,088.50  	$19,340.70  	$24.50  
	Months 37 through 48    	$236,825.00  	$19,735.41  	$25.00  
	Months 49 through
      the expiration  	$241,561.50  	$20,130.12  	$25.50  

     (g)
“Tenant’s Share”: 2.06%, which is the Tenant’s RSF divided by the Building RSF, as the
same may be adjusted from time to time. 

     (h) “Expense Stop”: Operating Expenses for
the Base Operating Year. 

     (i)
“Term”:
Five (5) years commencing on the Commencement Date and ending on the date (the
“Expiration Date”) which is (i) the day immediately preceding the fifth (5th) anniversary
of the Commencement Date, if the Commencement Date is the first day of a
calendar month, or (ii) the last day of the calendar month in which the fifth
(5th) anniversary of the Commencement Date occurs, if the Commencement Date is
any day other than the first day of a calendar month. 

1

     (j)
“Commencement Date”: shall mean the earlier of (i) the date Tenant commences occupancy with
Tenant’s employees of all or any portion of the Demised Premises, and (ii) the
Delivery Date (as hereinafter defined). In no event shall the Commencement Date
be earlier than the Effective Date (as hereinafter defined). Upon the request of
either party, following the determination of the Commencement Date, Landlord and
Tenant shall enter into a mutually acceptable Commencement Date Agreement
confirming the Commencement Date. Provided the Effective Date shall then have
occurred, Tenant and Tenant’s contractors approved by Landlord (such approval
not to be unreasonably withheld) shall, subject Landlord’s reasonable approval,
be permitted access to the Premises, upon reasonable prior notice to Landlord
and subject to Landlord’s scheduling requirements to avoid interruption of or
interference with the Initial Tenant Improvements (as hereinafter defined),
during the approximately thirty (30) day period prior to the Commencement Date,
solely for the purpose of allowing Tenant to install furniture, equipment and
cabling and wiring for its equipment and telephones. Such early access shall be
at Tenant’s sole risk. Such early access shall be granted upon the condition
that Tenant’s employees, contractors, agents or servants shall not interfere
with Landlord’s performance of the Initial Tenant Improvements. Tenant’s access
to and use of the Premises pursuant to the terms of this paragraph shall be
expressly subject to all terms, provisions and conditions of this Lease,
including, without limitation, the insurance requirements of this Lease (except
the provisions for payment of Rent). Landlord shall not be liable in any way for
any injury, loss or damage occurring as a result of Tenant’s early access to the
Premises. Landlord shall have the right to impose such additional reasonable
conditions on Tenant’s early access to the Premises as Landlord, in its sole
discretion, reasonably deems appropriate; provided, however, that Landlord shall
not require Tenant to post an additional security deposit therefor. 

     (k)
“Delivery Date”: shall mean the date on which the work to be performed by Landlord
constituting the Initial Tenant Improvements are “Substantially Completed” pursuant to
the terms of Section 3 below. Notwithstanding the foregoing, in the event that
the Delivery Date is delayed due to a Tenant Delay (as hereinafter defined) then
the Delivery Date shall be deemed to occur on the Estimated Delivery Date,
subject to extension for delays other than those caused in whole or in part by
Tenant. 

     (l)
“Estimated Delivery Date”: six (6) months from the date this Lease has been executed
and delivered by both Landlord and Tenant. 

     (m)
“Construction Information Submission
Date”: ten (10) business days from the date
this Lease has been executed and delivered by both Landlord and Tenant.

     (n) INTENTIONALLY DELETED 

     (o) INTENTIONALLY DELETED 

2

     (p) “Notice Addresses”:  

	Landlord: 	240 Princeton TCI
      Associates, LLC
		
	  	c/o Meritage
      Properties LLC  
	  	2 Overhill
      Road  
	  	Scarsdale, NY
      10583  
	  
	With a copy
      to:  	 
	  
	  	Windels Marx
      Lane & Mittendorf, LLP  
	  	156 West
      56th Street  
		New York, NY 10019 
	  	Attn.: Mitchell
      A. Gilbert, Esq.  
	  
	  
	Tenant:  	Prior to the
      Commencement Date:  
	  
	  	Voxware
      Inc.  
		168 Franklin Corner Road
  
	  	Building 1,
      Suite 3  
		Lawrenceville, NJ 08648
  
	  
	  	After the
      Commencement Date:  
	  
		At the Demised Premises
  
	  
	With a copy
      to:  	 
	  
	  	Stuart Dember,
      Esq.  
	  	Saul
      Ewing  
	  	750 College Road
      East, Suite 100  
		Princeton, NJ 08540-6617
  

     (q) “Rent Payment Address” /
“Property Manager”: 

	                      
    	240 Princeton
      TCI Associates, LLC
		P.O. Box
      822394
	 	Philadelphia, PA
      19182-2394

     (r) “Security Deposit”: $60,390.36

     (s) “Permitted Use”: General Office Use

     (t) “Broker”: 

	“Landlord’s
      Broker”: Linque Management Company,
      Inc.  
	“Tenant’s Broker”: Bill Barish for Commercial Property
      Network  

3

     (u)
“Default”:
shall mean a default hereunder beyond the written notice and grace period, if
applicable, stated herein. 

     (v) “Effective Date”: shall mean the date
that is the earlier of (i) the date Tenant’s application for a Business
Employment Incentive Program grant from the New Jersey Economic Development
Authority has been given final approval, or (ii) January 16, 2008, in the event
Tenant fails to deliver, in a timely manner, the termination notice set forth in
Article 44 of this Lease. 

2. DEMISED PREMISES/COMMON AREAS.
Landlord, for the Term, and subject to the
provisions and conditions hereof, leases to Tenant and Tenant accepts from
Landlord, the Demised Premises. Tenant shall use the Premises for the Permitted
Use and for no other purpose. Tenant shall not use or occupy, or permit or
suffer to be used or occupied, the Demised Premises for any of the Prohibited
Uses set forth on Exhibit “F” or any part thereof, other than for the Permitted
Use. Tenant shall further have the non-exclusive right, in common with the other
tenants and occupants of the Building and with others who have been granted such
rights by Landlord, to use the “Common Areas” of the Building. As used herein,
“Common Areas” shall mean any areas or facilities designated by Landlord from
time to time for the general use of all tenants in the Building, including any
nonreserved parking areas, driveways, sidewalks, hallways, restrooms, and other
similar public areas and access ways of the Building to the extent designated as
“Common Areas” by Landlord. 

3. INITIAL TENANT IMPROVEMENTS.

     (a)
Landlord shall construct, or cause to be constructed, in a good and workmanlike
manner, certain improvements to the Demised Premises as provided for in the
Tenant’s Plans (as hereinafter defined). The work described in the Tenant’s
Plans is hereinafter referred to as the “Initial Tenant Improvements”.

     (b)
Landlord and Tenant have attached hereto the initial plans (the “Initial Plans”) for the
Initial Tenant Improvements, consisting of the space plan attached hereto as
Exhibit “B” (the “Space Plan”) and the construction standards attached hereto as
Exhibit “B-1” (the “Construction
Standards”). Tenant shall provide to Landlord
any reasonable information required by Landlord for preparation of the
Construction Drawings (as hereinafter defined), including, without limitation,
Tenant’s finish selections, mechanical loads, electrical loads and locations,
furniture plans and special lighting and use requirements, if any (collectively,
the “Construction Information”) on or before the Construction Information Submission Date.
In the event additional or supplemental Construction Information is required by
Landlord, Tenant shall, within five (5) days after Landlord's request therefor,
provide to Landlord such Construction Information. Landlord, no later than
thirty (30) days after the Construction Information Date, shall prepare and
deliver to Tenant for Tenant’s approval, a complete and coordinated set of
working, finished and detailed construction and engineering drawings and
specifications for the Initial Tenant Improvements (the "Construction Drawings"),
which shall (i) be prepared in conformity with the Initial Plans, (ii) comply
with all legal requirements and Building and Construction Standards, and (iii)
be sealed by a licensed architect and suitable for the issuance of any required
building permit. If Tenant does not provide Landlord with a written response
within five (5) business days of Landlord’s delivery of the Construction
Drawings to Tenant, the Construction Drawings shall be deemed approved by
Tenant. 

4

In the event Tenant does not approve of
the Construction Drawings, then within five (5) business days after Landlord’s
delivery of the Construction Drawings to Tenant (the “Approval Period”), Tenant
shall provide good faith detailed written reasons for such disapproval (the
“Detail Notice”); provided, that Tenant shall use commercially reasonable good
faith efforts to provide the Detail Notice as soon as possible after the
commencement of the Approval Period, but in no event later than the expiration
of the Approval Period. Within an additional ten (10) days after the receipt of
the Detail Notice, Landlord shall resubmit the Construction Drawings to Tenant,
and the process shall be repeated until the Construction Drawings have been
approved, or deemed approved, by Tenant; except Tenant shall not comment on any
portion of the Construction Drawings which previously were not timely
disapproved in the manner set forth above. Landlord or Landlord's agent, at no
additional charge to Tenant, shall act as construction manager with respect to
the Initial Tenant Improvements. Landlord shall apply to the appropriate
governmental authorities for any building permit(s) that shall be required in
connection with Landlord's performance of the Initial Tenant Improvements.
Landlord shall diligently prosecute the Initial Tenant Improvements to
completion, using building standard materials and finishes as set forth in
Exhibit B-1. Landlord shall perform the Initial Tenant Improvements in
accordance with the Tenant’s Plans, in compliance with all legal requirements,
and otherwise in a good and workmanlike manner. Landlord reserves the right
however, (i) to make substitutions of material of equivalent grade and quality
when and if any specified material shall not be readily and reasonably
available, and (ii) to make changes necessitated by conditions met in the course
of construction, provided that Tenant's approval of any substantial change shall
first be obtained (which approval shall not be unreasonably withheld or delayed
so long as there shall be general conformity with the Tenant’s Plans). Landlord
shall arrange for any inspections, and shall, at its sole cost and expense,
apply for and obtain any temporary or final Certificate of Occupancy, required
by any governmental authority. 

     (c) The
Initial Plans and the Construction Drawings, as finally approved by all
applicable governmental authorities, are hereinafter collectively referred to as
the “Tenant’s Plans”. Notwithstanding anything to the contrary contained herein, if the
final Construction Drawings, as finally approved by all applicable governmental
authorities, contain any work which was not included in, is different than or
otherwise exceeds the requirements of, the Initial Plans, then the same shall
constitute a change order requested by Tenant (a “Tenant Change Order”) and Tenant shall
pay any increase in the cost attributable to or resulting from such Tenant
Change Order (including, without limitation, additional Architect’s fees and
additional costs of constructing the Initial Tenant Improvements, as well as
Landlord’s additional administrative costs and engineering review fees). Any
delay in the date of Substantial Completion (as hereinafter defined) by reason
of any such Tenant Change Order shall constitute a Tenant Delay as hereinafter
defined. Without limiting the foregoing, and unless otherwise specifically
agreed by Landlord and Tenant or otherwise specifically detailed in the Initial
Plans approved by Landlord, all materials, finishes, quality levels, quantities
and the like applicable to the Initial Tenant Improvements as depicted in the
Initial Plans shall be consistent with the “building standard” items generally
provided by Landlord for comparable tenancies in the Building. 

5

     (d) Tenant
Change Orders shall not be permitted without the prior written approval of
Landlord, which approval shall not be unreasonably withheld, conditioned or
delayed by Landlord so long as the Tenant Change Order does not delay
Substantial Completion or materially increase the cost of the Initial
Tenant Improvements. If Landlord approves any Tenant Change Order then,
notwithstanding anything to the contrary contained herein, Tenant shall pay any
increase in the cost of constructing the Initial Tenant Improvements resulting
from such Tenant Change Order within ten (10) days after receipt of Landlord’s
invoice therefor. As a condition to Landlord’s approval of any Tenant Change
Order, Landlord may require that, prior to Landlord’s commencement of any work
related to such Tenant Change Order, Tenant shall pay to Landlord fifty percent
(50%) of the amount estimated by Landlord to become due to Landlord with respect
to such Tenant Change Order and the remaining fifty percent (50%) when the work
under the Tenant Change Order has been substantially completed and ready for
Tenant’s use and occupancy. 

     (e) Upon
Substantial Completion of the Initial Tenant Improvements, Landlord shall notify
Tenant and Tenant shall inspect the Demised Premises with Landlord within three
(3) business days after Tenant’s receipt of Landlord’s notice. Within two (2)
business days of completion of the inspection, it shall be presumed that all
work theretofore performed by or on behalf of Landlord was satisfactorily
performed in accordance with, and meeting the requirements of, this Lease,
excepting, however: (i) required work not actually completed by Landlord and
which is identified at the time of the inspection on a list prepared by the
construction representatives of Landlord and Tenant (“Punchlist Items”), or (ii) to latent
defects in such work which could not reasonably have been discovered at the time
of the inspection provided that Tenant notifies Landlord in writing of such
defects within one (1) year after the Commencement Date. Landlord shall
substantially complete the Punchlist Items within sixty (60) days of the
inspection, except for any Long Lead Items as set forth herein. 

     (f)
Landlord’s work in constructing the Initial Tenant Improvements shall be deemed
to be “Substantially Completed”, and “Substantial
Completion” shall mean, when: (i) the work to
be performed by Landlord shown on the Tenant’s Plans has been completed except
for minor or insubstantial details of construction, mechanical adjustments, or
finishing touches like plastering or painting, which items shall not materially
and adversely affect Tenant’s conduct of its ordinary business activities in the
Demised Premises, and (ii) the issuance of a temporary or final Certificate of
Occupancy by the municipality so that Tenant may lawfully occupy the Demised
Premises for its ordinary business activities (except to the extent that such
lawful occupancy is conditioned on remaining installations, work or improvements
to be performed by Tenant). Notwithstanding the foregoing, in the event that
Substantial Completion of the Initial Tenant Improvements is delayed, in whole
or in part, by acts or omissions of Tenant, and which delay is not within the
control of Landlord (a “Tenant
Delay”), including, without limitation, for
the reasons set forth in subparagraphs (i) through (iv) below, then Tenant’s
obligation to pay Rent hereunder shall not be affected or deferred on account of
such delay and, for purposes of establishing the Delivery Date hereunder, the
“Delivery Date” shall be deemed to occur on the Estimated Delivery Date (or such later
date as may result from delays in Substantial Completion that are not
attributable to Tenant Delay, subject to the limitations set forth in Section
4(a) below): 

          (i) Tenant’s failure to: (1) deliver Tenant’s Construction
Information on or before the Construction Information Submission Date; (2)
deliver Tenant’s additional or supplemental Construction Information, if any,
within the period set forth in Section 3(b) above; (3) promptly make changes in
the Construction Drawings reasonably required by Landlord or any applicable
governmental authority in connection with the approval thereof; or 

6

          (ii)
Tenant Change Order(s); or 

          (iii) delays, not caused by Landlord, in furnishing special
items which are not readily available (“Long
Lead Items”) or procuring specialized labor
required for installation of Long Lead Items, provided that Tenant shall be
notified of Landlord’s good faith estimate of the anticipated delay promptly
after discovery thereof by Landlord, and shall be given an opportunity to
specify alternative materials or requirements which are readily available; or

          (iv) the performance of any work or activity in the Demised
Premises or Building by Tenant or any of its employees, agents or contractors
(including, without limitation, the installation of Tenant’s furniture, cabling
or equipment). Without limiting the foregoing, Tenant specifically acknowledges
that the municipality’s issuance of a final certificate of occupancy (or similar
certificate) may be conditioned upon Tenant’s installation of its furniture,
cabling or equipment or the completion of any other work or activity in the
Demised Premises by Tenant or any of its employees, agents or contractors. In
such event, if the municipal authority will not issue a final certificate of
occupancy (or similar certificate) or schedule an inspection of the Demised
Premises due to Tenant’s failure to install such furniture, cabling or equipment
or failure to complete such other work or activity, then the same shall
constitute a Tenant Delay hereunder.

     (g)
Tenant acknowledges that the Estimated Delivery Date (which shall be an estimate
and not a guarantee by Landlord) is conditioned upon all applicable governmental
authorities approving the Construction Drawings within sixty days of the date of
this Lease. 

4. DELAY IN POSSESSION.

     (a)
Landlord currently anticipates that the Delivery Date will occur on or about the
Estimated Delivery Date. If the Delivery Date has not occurred by the Estimated
Delivery Date because any repairs or improvements to the Demised Premises are
not completed, Landlord shall not be subject to any liability to Tenant (except
to the extent set forth herein). Under such circumstances (but subject to the
provisions herein relating to Tenant Delay, the Rent reserved and covenanted to
be paid herein shall not commence until the Commencement Date, and no such
failure to deliver possession shall in any other respect affect the validity of
this Lease. Notwithstanding the foregoing, in the event that the Commencement
Date does not occur by the date which is forty five (45) days after the
Estimated Delivery Date (other than on account of a Force Majeure, not to exceed
six (6) months, or on account of a Tenant Delay), Tenant shall be entitled, as
its sole and exclusive remedy, to a rent credit equal to one day’s Base Rent
(net of Operating Expenses) for each day that the Commencement Date is delayed
beyond such forty five (45) day period after the Estimated Delivery Date.

     (b) In
the event that the Commencement Date has not occurred by the date which is one
hundred eighty (180) days after the Estimated Delivery Date (other than on
account of a Tenant Delay or on account of a Force Majeure, not to exceed six
(6) months), then Tenant shall thereafter have the right to terminate this Lease
by delivering fifteen (15) days’ written notice thereof to Landlord at any time
prior to the Commencement Date; provided, however, that if the Commencement Date
shall occur within fifteen (15) days after Landlord’s receipt of Tenant’s
termination notice, then Tenant’s termination notice shall be null and void and
this Lease shall remain in full force and effect. 

7

5. RENT. 

     (a)
During the Term, Tenant shall pay to Landlord the Annual Base Rent in the
amounts set forth in Section 1 (Fundamental Lease Provisions) above. Such Annual
Base Rent shall be payable in equal monthly installments in advance on the first
day of each calendar month, by wire transfer of immediately available federal
funds to the following account: PNC Bank, N.A., ABA # 043000096, Account #
1022337346, for credit to the account of 240 Princeton TCI Assoc. c/o Midland
Loan Service. The place and method of payment of Rent, and each component
thereof, may be changed as Landlord may, from time to time, designate by written
notice to Tenant, and all Rent shall be payable to Landlord without demand and
without deduction, set-off or counterclaim (except to the extent demand or
notice shall be expressly provided for in this Lease). 

     (b) The
term “Rent”
as used in this Lease shall mean the Annual Base Rent, Tenant’s Operating
Payments (as hereinafter defined), Tenant’s Tax Payments (as hereinafter
defined), payment for utilities and all other additional rent or other sums
payable by Tenant to Landlord under this Lease. All Rent other than the Annual
Base Rent is referred to herein as “Additional
Rent,” and may be paid in either the same
manner as the Annual Base Rent or by check delivered to the Rent Payment Address
as defined in Section 1(q), above. 

     (c)
Tenant shall pay, on the Effective Date of this Lease, the first full monthly
installment of Rent as set forth in Section 1(f), which amount shall be applied
against the monthly installment of Annual Base Rent for the calendar month
immediately following the calendar month in which the Commencement Date occurs.
If the Term begins on a day other than the first day of a calendar month, Rent
from such day until the first day of the following calendar month shall be
prorated on a per diem basis for each day of such partial month. 

     (d)
Tenant’s covenant to pay Rent, and each component thereof, is independent of
every other covenant contained in this Lease.

     (e) If
Landlord, at any time or times, shall accept said Rent due to it hereunder after
the same shall become due and payable, such acceptance shall not excuse delay
upon subsequent occasions, or constitute or be construed as, a waiver of any of
Landlord’s rights hereunder. 

8

6. SECURITY DEPOSIT. 

     (a) As
additional security for the full and prompt performance by Tenant of the terms
and covenants of this Lease, Tenant shall deposit, on the Effective Date of this
Lease , with Landlord the Security Deposit, which shall not constitute Rent for
any month (unless so applied by Landlord on account of Tenant’s Default) or a
measure of Tenant’s liability for damages. Upon a Default by Tenant hereunder,
Landlord shall have the right, without prejudice to any other remedy, to apply
so much of the Security Deposit as is necessary to cure such Default or pay any
expenses (including, without limitation, reasonable attorney’s fees) incurred as
a result of such Default. Tenant shall, upon demand, restore any portion of said
Security Deposit applied by Landlord to the cure of any Default by Tenant
hereunder. Landlord shall have the right to commingle the Security Deposit with
the other account(s) of Landlord without any requirement to place same in a
segregated account or to pay any interest thereon. To the extent that Landlord
has not applied said sum on account of a Default, the Security Deposit shall be
returned (without interest) to Tenant within thirty (30) days following the
latest to occur of: (a) the Expiration Date, (b) the payment by Tenant of
Tenant’s Share of Operating Expenses for the final year of the Term and any
other arrearages of Rent (including Additional Rent) then due, and (c) the date
that Tenant surrenders possession of the Demised Premises in accordance with the
terms of this Lease. 

     (b)
Notwithstanding the foregoing subsection (a), at Tenant’s option, Tenant may
replace the Security Deposit with an unconditional letter of credit (the
“Letter of Credit”) in the amount set forth in Section 1(r) (Fundamental Lease
Provisions). Upon receipt of the Letter of Credit as set forth above, Landlord
shall return any funds held by Landlord as the Security Deposit which are being
replaced by the Letter of Credit. If Tenant elects to deliver the Letter of
Credit, the Letter of Credit shall be in a form and substance reasonably
satisfactory to Landlord, naming Landlord as beneficiary. The Letter of Credit
and any renewal Letter of Credit shall be drawn on a bank or trust company
satisfactory to Landlord. Upon a Default by Tenant hereunder including but not
limited to the failure to timely provide a renewal Letter of Credit to Landlord
as provided below, Landlord shall have the right to present the Letter of Credit
for payment and use, apply or retain the whole or any part of the proceeds
thereof, to cure such Default or pay any expenses (including, without
limitation, reasonable attorney’s fees) incurred as a result of such Default. If
Landlord shall so use, apply or retain the whole or any part of the proceeds of
the Letter of Credit, Tenant shall upon demand by Landlord immediately deposit
with Landlord a sum of cash equal to the amount used, applied or retained, as
security as aforesaid or a letter of credit (in the form as set forth herein) in
said amount, failing which Landlord shall have the same rights and remedies as
under this Lease for nonpayment of Rent. To the extent that Landlord has not
used, applied or retained the whole or any part of the proceeds of the Letter of
Credit, the Letter of Credit, or so much of the proceeds thereof as shall remain
after any application pursuant to the terms of this Lease, shall be returned to
Tenant within sixty (60) days following the Expiration Date. Tenant agrees to
cause the bank to automatically renew the Letter of Credit, in the same form
from time to time during the Term, at least thirty (30) days prior to the
expiration of the Letter of Credit or any renewal thereof so that a Letter of
Credit issued by the bank to Landlord shall be in force and effect throughout
the Term. In the event of any sale, transfer or leasing of Landlord’s interest
in the Building, Landlord shall have the right to automatically transfer either
the Letter of Credit or any sums collected thereunder without the bank’s
consent, together with any other unapplied sums held by Landlord as security and
the interest thereon, if any, to which Tenant is entitled, to the vendee,
transferee or lessee, and upon giving notice to Tenant of such fact and the name
and address of the transferee, Landlord shall thereupon be released by Tenant
from all liability for the return or payment thereof, and Tenant shall look
solely to the new owner for the return or payment of same. 

     (c)
Provided Tenant is not then in default and no prior Event of Default shall have
occurred, then the Security Deposit shall be reduced to (i) fifty thousand
($50,000.00) Dollars on the second (2nd) anniversary of the
Commencement Date, (ii) forty thousand ($40,000.00) Dollars on the third
(3rd)
anniversary of the Commencement Date, and (iii) the equivalent of two (2) months
of Annual Base Rent on the fourth (4th) anniversary of the
Commencement Date and thereafter. Should an Event of Default occur subsequent to
any reduction, then the Security Deposit shall be as set forth in 1(r) along
with such other and additional security as may otherwise expressly be set forth
in this Lease, if any, for the remainder of the Term or any Renewal Term hereof.

9

7. PAYMENT OF OPERATING EXPENSES.

     (a) For the purposes of this Lease,
the following definitions shall apply: 

          “Operating
Year” shall mean any calendar year, the whole
or any portion of which is included within the Term. 

          “Base Operating
Year” shall mean the Operating Year
commencing on January 1, 2008, and ending December 31, 2008. 

          “Base Operating
Amount” shall mean the Operating Expenses for
the Base Operating Year. 

          “Operating
Expenses”, for any Operating Year, shall be
determined in accordance with the provisions of the following paragraphs (b)
through (d), sequentially applied: 

          “Real
Property” shall mean, collectively, the
Building, and all improvements, fixtures, facilities, machinery and equipment
comprising a part of, or located in or used in the operation of, the Building,
(including, without limitation, all improvements and betterments of Tenant’s),
as well as all personal property located in the Building which is used in the
operation thereof, the land on which the Building is located (the “Land”), the
curbs, sidewalks and plazas immediately adjoining such Land, and all easements,
air rights, development rights and other appurtenances to the Building and/or
such Land. 

     (b)
“Operating Expenses” shall mean all expenses actually and reasonably paid or
incurred by, or on behalf of, Landlord in respect of the operation, management,
maintenance and/or repair of the Real Property, including, without limitation:
(1) salaries, wages and fringe benefits of employees and contractors engaged in
such operation, management, maintenance and/or repair; (2) payroll taxes,
worker’s compensation, uniforms and related expenses for such employees; (3) the
cost of fuel, gas, steam, electricity, heat, ventilation, air-conditioning and
chilled or condenser water, water, sewer and other utilities, together with any
taxes and surcharges on, and fees paid in connection with the calculation and
billing of, such utilities; (4) the cost of painting and/or decorating all areas
of the Real Property (excluding, however, any leasable areas of the Building);
(5) the cost of casualty, liability, fidelity, rent and all other insurance
regarding the Real Property and/or any property thereon (together with amounts
paid or incurred on account of any commercially reasonable deductible therein);
(6) the cost of all supplies, tools, materials and equipment, whether by
purchase or rental, used in the operation, management, maintenance and/or repair
of the Real Property; (7) the fair rental value of any Building office or other
space in the Building used in connection with the operation, management,
maintenance and/or repair of the Real Property, and all office expenses (e.g.,
telephone, utility, stationery) incurred in connection therewith; 

10

(8) the cost of security services, and cleaning and janitorial services,
including, without limitation, glass cleaning, snow and ice removal and garbage
and waste collection and/or disposal; (9) the cost of all interior and exterior
landscaping located at or within the Real Property; (10) the cost of alterations
and/or repairs made in or to the Real Property, however the cost of alterations
or repairs necessitated to come into compliance with laws, rules, regulations,
ordinances, etc., coming into effect after the date of this Lease shall be
amortized over the useful life of such alterations and or repairs; (11)
management fees (or, if Landlord self-manages, or has an affiliate of Landlord
manage, the Real Property, an amount in lieu thereof equal to 5% of the gross
receipts for the Real Property); (12) all reasonable costs and expenses of
legal, bookkeeping, accounting and other professional services; (13) the fair
rental value of the area occupied by Building’s cafeteria and the cost of
subsidizing any similar specialty service provided for tenants and occupants of
the Building generally; and (14) all other fees, costs, charges and expenses
properly allocable to the operation, management, maintenance and/or repair of
the Real Property. 

     (c)
“Operating Expenses” shall not, however, include the following items: (1)
depreciation of the Building; (2) interest on, and amortization of, Mortgages
(as hereinafter defined) and other debts; (3) architects’ and attorneys’ fees
and disbursements, and any and all other costs, fees and expenses, incurred in
leasing, renovating, or otherwise improving leased or vacant space in the
Building for the occupants or prospective occupants, or in procuring new
occupants; (4) brokerage commissions; (5) financing or refinancing costs; (6)
the cost of any electricity consumed in the Premises or any other leasable area
of the Building; (7) Taxes; (8) ground rent paid by Landlord to any Underlying
Lessor (as hereinafter defined); (9) costs incurred in connection with the sale
or transfer of Landlord’s interest; (10) costs and expenses incurred in
connection with the enforcement of leases or other agreements in the Building;
(11) any bad debt loss, rent loss or reserves for bad debts or rent loss; (12)
fines, penalties and interest, and any costs, fees and expenses attributable to
a violation by Landlord; (13) any amounts for which Landlord is reimbursed by
insurance; (14) costs separately billed to other tenants or occupants in the
Building (other than as Operating Expenses); (15) Landlord’s general corporate
overhead and general administrative expenses; (16) any profits received by
Landlord because the aggregate proportionate shares of Operating Expenses of all
tenants in the Building exceed a number greater than one hundred percent (100%);
(17) premiums on environmental insurance (which shall be a separate item of
Additional Rent as hereinafter provided); (18) charitable or political donations
and contributions; (19) salaries and benefits of personnel above manager level,
and (20) expenditures for capital improvements and all other costs which should
be capitalized in accordance with generally accepted accounting practices
consistently applied, other than (i) those which under generally applied
accounting practices consistently applied are expenses or regarded as deferred
expenses or are made by reason of all applicable laws, statutes and ordinances
(including codes, approvals, permits and zoning regulations and ordinances) and
the orders, rules, regulations, interpretations, directives and requirements of
all federal, state, county, city and borough departments, bureaus, boards,
agencies, offices, commissions and other subdivisions thereof, or of any
official thereof, or of any other governmental, public or quasi-public
authority, whether now or hereafter enforced (“Legal Requirements”) or all orders,
rules, regulations, requirements, policies or recommendations of any board of
fire underwriters, fire rating organization, insurance rating organization or
any other body exercising the same or similar functions to the foregoing which
have jurisdiction over, or otherwise make rates or findings in respect of, all
or any part of the Real Property (“Insurance
Requirements”). enacted or adopted after the
date hereof, in any of which cases the cost thereof shall be included

11

in Operating Expenses for the calendar
year in which the costs are incurred and subsequent calendar years, on a
straight-line basis, to the extent that such items are amortized over an
appropriate period in accordance with generally accepted accounting practices
consistently applied, (ii) the cost of any item of capital equipment purchased
by Landlord or any capital expenditure made by Landlord which has the effect of
reducing the expenses which would otherwise be included in Operating Expenses,
in any of which cases the cost of such capital equipment or capital expenditure
shall be included in Operating Expenses for the calendar year in which the costs
are incurred and subsequent calendar years, on a straight-line basis, to the
extent that such items are amortized over such period of time as such savings or
reductions in Operating Expenses are expected to equal Landlord’s costs for such
capital equipment or capital expenditure, determined in accordance with
generally accepted accounting practices consistently applied, and (iii) if
Landlord shall lease any items of capital equipment designed to result in
savings or reductions in expenses which would otherwise be included in Operating
Expenses, then the rentals and other costs paid pursuant to such leasing will be
included in Operating Expenses for the calendar year in which such rentals or
other costs were incurred.

     (d) If
during any relevant period (i) any rentable space in the Building shall be
vacant or unoccupied, and/or (ii) the tenant or occupant of any space in the
Building undertook to perform work or services therein in lieu of having
Landlord perform the same and the cost thereof, if the same were performed by
Landlord, would have been included in Operating Expenses, then, in any such
event(s), the Operating Expenses for such period shall be adjusted to reflect
the Operating Expenses that would have been incurred if such space had been
occupied or if Landlord had performed such work or services, as the case may be.
In addition, if more than one (1) office building exists on the Real Property
during any Operating Year, Operating Expenses for such Operating Year shall be
allocated between or among such buildings in a manner reasonably determined by
Landlord and consistently applied.

     (e) For
each Operating Year subsequent to the Base Operating Year, Tenant, as
hereinafter provided, shall pay to Landlord an amount (the “Operating Payment”) equal
to Tenant’s Share of the amount by which the Operating Expenses for such
Operating Year exceed the Base Operating Amount. In respect of any such
Operating Year that is partly within and partly without the Term, the Operating
Payment shall be prorated to correspond to that portion of such Operating Year
occurring within the Term. Landlord, prior to the commencement of, or during,
any Operating Year, may furnish to Tenant a written statement setting forth
Landlord’s reasonable estimate of the Operating Payment for such Operating Year
(such estimate, as the same may be revised as hereinafter provided, the
“Estimated Operating Payment”). Tenant shall pay to Landlord on the first day of each
month during any Operating Year, an amount equal to one-twelfth (1/12th) of the
Estimated Operating Payment for such Operating Year. If, however, Landlord, for
any Operating Year, shall not furnish such a written statement or only furnish
the same after the commencement of such Operating Year, then (i) until the first
day of the month following the month in which such written statement is
furnished, Tenant shall pay to Landlord on the first day of each month an amount
equal to the monthly sum payable by Tenant to Landlord under this Section for
the last month of the preceding Operating Year, (ii) after such written
statement is furnished, Landlord shall give a notice to Tenant indicating
whether the installments of the Operating Payment previously made for such
Operating Year were greater or less than the installments of the Operating
Payment which would have theretofore been made had such written statement been
furnished prior to the commencement of such Operating Year,

12

and, within thirty (30) days of such
notice, either Tenant shall pay to Landlord the deficiency indicated thereby or
Landlord shall refund to Tenant the overpayment indicated thereby (which
obligations of Landlord and Tenant shall survive the expiration of this Lease),
and (iii) on the first day of the month following the month in which such
written statement is furnished, and on the first day of each month thereafter
throughout the remainder of such Operating Year, Tenant shall pay to Landlord an
amount equal to one-twelfth (1/12th) of the Estimated Operating Payment set
forth on such written statement. Landlord may, during any Operating Year,
furnish to Tenant a written statement revising the Estimated Operating Payment
for such Operating Year, and in each such case, the Estimated Operating Payment
for such Operating Year shall be adjusted, and amounts paid or refunded, as the
case may be, in substantially the same manner set forth in the immediately
preceding sentence. Landlord, not later than two hundred seventy (270) days
after the end of each Operating Year for which an Operating Payment is due,
shall furnish to Tenant a written statement (herein called an “Operating Statement”)
setting forth the Operating Payment for such Operating Year. If, for any such
Operating Year, the Operating Statement shall show that the sums paid by Tenant
as provided above, exceeded the Operating Payment for such Operating Year (such
excess, for any Operating Year, being herein called the “Operating Overpayment”),
then Landlord, within thirty (30) days after delivery of such Operating
Statement, shall, at Landlord’s option, either credit the amount of such
Operating Overpayment against future Operating Payments becoming due, or refund
to Tenant the amount of such Operating Overpayment. If the Operating Statement
for such Operating Year shall show that the sums paid by Tenant as provided
above were less than the Operating Payment for such Operating Year (such
deficiency, for any Operating Year, being herein called the “Operating Deficiency”),
Tenant shall pay the amount of such Operating Deficiency within twenty (20) days
after Tenant’s receipt of the Operating Statement. Landlord’s failure to render,
or delay in rendering, an Operating Statement with respect to any Operating Year
shall not prejudice Landlord’s right to thereafter render a Operating Statement
for such Operating Year or any other Operating Year, nor shall the rendering of
a Operating Statement (or a revised or corrected Operating Statement) for any
Operating Year prejudice Landlord’s right to thereafter render one or more
revised or corrected Operating Statements for such Operating Year.
Notwithstanding anything herein contained to the contrary, Tenant shall not be
liable for any Operating Statement or corrected Operating Statement (except
corrected Operating Statements arising out of corrected invoices or statements
from a governmental entity) issued more than two (2) years after the last day of
the Operating Year to which it relates.

     (f) Each
Operating Statement shall be conclusive and binding upon Tenant as of the date
that is thirty (30) days after the delivery thereof (herein called the
“Operating Statement Dispute
Deadline”), except to the extent that,
prior thereto, Tenant shall have, in good faith, disputed items or matters set
forth on such Operating Statement by written notice to Landlord, which notice
shall set forth, in reasonable detail, the disputed items or matters and clearly
state the reasons that Tenant disputes the same. If Tenant shall dispute in
writing any specific item or items in Landlord’s Operating Statement, and such
dispute is not resolved within ninety (90) days after Tenant’s delivery of
written notice to Landlord of such disputed item or items, either party may,
during the thirty (30) days next following the expiration of such ninety (90)
day period, refer such disputed item or items to an independent certified public
accountant mutually acceptable to Landlord and Tenant (and if such accountant is
selected by Tenant, such accountant shall not be entitled to charge a contingent
fee or a “success” fee for its services rendered) (herein called the
“Accountant”), for a determination of such disputed item or items (herein called a
“Determination”).

13

Such Determination shall be completed
and the results thereof delivered to Landlord and Tenant by the expiration of
one hundred twenty (120) days after the Operating Statement Dispute Deadline
(herein called the “Determination
Deadline”). If such Determination is so
completed and the results thereof delivered to Landlord and Tenant by the
Determination Deadline, such Determination shall be final, conclusive and
binding upon Landlord and Tenant. If Tenant does not dispute in writing any
specific item or items in Landlord’s Operating Statement by the Operating
Statement Dispute Deadline for such Operating Statement or if Tenant is in
default under this Lease at the time of such dispute, the Operating Statement in
question shall be conclusive and binding upon Tenant. Prior to performing
services hereunder, the Accountant shall agree in writing that the results of
its investigation and review of the dispute shall remain confidential (except
that the same may be disclosed to Landlord, Tenant, their respective attorneys
and accountants, and parties to whom disclosure is required due to applicable
Legal Requirements and Insurance Requirements), and that the Accountant shall
not solicit other tenants in the Building for the purpose of disputing Operating
Statement items. Landlord shall provide (i) Tenant, during the period prior to
the Operating Statement Dispute Deadline, and (ii) the Accountant, following
referral of a disputed item to the Accountant as provided above, with reasonable
access to or with copies of all records and information reasonably requested by
Tenant or the Accountant, as the case may be, and, in the case of the
Accountant, reasonably necessary for the Determination. The party referring such
disputed item to the Accountant for determination in accordance with this
Section shall pay all the costs of the Accountant involved in such
Determination. If it shall be so determined that any portion of the amount set
forth in the Operating Statement in question that was charged to and paid by
Tenant was not properly chargeable to Tenant, then Landlord shall credit to
Tenant the amount of such improper charge against the next installment or
installments of Rent accruing under the Lease (or, if at the end of the Term,
Landlord shall refund such amount to Tenant).

7A. TAX PAYMENTS. 

     (a) For the purposes of this Lease,
the following definitions shall apply: 

          “Tax Year” shall mean each calendar year the whole or any portion of
which is within the Term. If a fiscal period fixed for any component of Taxes by
any governmental authority is a period other than a Tax Year, then such
component of Taxes shall be averaged over the number of calendar months in such
fiscal period and each such monthly portion shall be included in Taxes for the
Tax Year in which such calendar month occurs. 

          “Base Tax
Year” shall mean Tax Year commencing on
January 1, 2008, and ending December 31, 2008. 

          “Base Tax Amount” shall mean
the Taxes for the Base Tax Year. 

          “Tenant’s Share” shall mean
2.06%. 

14

          “Taxes”, for any Tax Year, shall mean (A) all real estate taxes,
water and sewer rents or charges, school taxes, assessments and special
assessments levied, assessed or imposed upon or with respect to the Real
Property by any governmental authority, and (B) any actual out-of-pocket
expenses reasonably incurred by Landlord in contesting such taxes, charges or
assessments and/or the assessed value of the Real Property, which
expenses shall be allocated to the Tax Year to which such expenses relate. Taxes
shall also include all taxes assessed or imposed upon Landlord with respect to
the rents received from the Real Property (but not any general income taxes,
gross receipts taxes or corporate franchise taxes), and all payments in lieu of
taxes required to be made by Landlord pursuant to any agreement therefor between
Landlord (or any predecessor of Landlord) and the municipality in which the Real
Property is located (a “PILOT
Agreement”) (including but not limited to
that certain Financial Agreement dated December 22, 2004, between 240 Princeton
Avenue Urban Renewal, L.L.C., and the Township of Hamilton, as the same may be
amended from time to time). Except for amounts paid under any PILOT Agreement,
Taxes shall be determined based upon a 95% fully assessed and completed
Building, without exemptions or abatements applicable thereto. If, at any time
during the Term, the methods of taxation prevailing on the date hereof shall be
altered so that in lieu of, or as an addition to or as a substitute for, the
whole or any part of the taxes, charges or assessments now levied, assessed or
imposed, there shall be levied, assessed or imposed a new tax, assessment, levy,
imposition, license fee or charge wholly or partially as a capital levy or
otherwise on the Real Property or the rents received from the Real Property,
then such additional or substitute tax, assessment, levy, imposition, fee or
charge shall be included within “Taxes” for purposes hereof. If more than one
(1) office building exists on the Real Property during any Tax Year, the Taxes
for such Tax Year shall be allocated between or among such buildings in a manner
reasonably determined by Landlord and consistently applied. Finally, “Taxes”
shall also include any payments in lieu of “Taxes” payable in connection with
any tax exemption obtained from any Governmental Authority with respect to the
Real Property. 

     (b) If
Taxes for any Tax Year subsequent to the Base Tax Year shall exceed the Base Tax
Amount, Tenant, as hereinafter provided, shall pay to Landlord an amount (herein
called the “Tax Payment”) equal to Tenant’s Share of the amount by which the Taxes
for such Tax Year are greater than the Base Tax Amount. In respect of any such
Tax Year which begins prior to the Commencement Date or ends after the
Expiration Date, the Tax Payment shall be prorated to correspond to that portion
of such Tax Year occurring within the Term. Landlord, at anytime prior to,
during, or after the end of, any Tax Year, may deliver to Tenant a statement for
the Tax Payment for such Tax Year (each such statement being herein called a
“Tax Statement”). Tenant shall pay to Landlord on the first day of each month during
any Tax Year an amount equal to one-twelfth (1/12th) of the Tax Payment for such
Tax Year. If, at any time after the delivery of any Tax Statement for any Tax
Year, it is determined for any reason (including any reduction in Taxes
comprising the Base Tax Amount) that the Tax Payment for such Tax Year is
greater than the amount set forth on such Tax Statement, then Landlord may
furnish to Tenant a revised or corrected Tax Statement for such Tax Year, and,
in any such case, Tenant shall pay to Landlord the additional amount indicated
by the revised or corrected Tax Statement within thirty (30) days after Tenant’s
receipt thereof. Landlord’s failure to render, or delay in rendering, a Tax
Statement, or a revised or corrected Tax Statement, for any Tax Year shall not
prejudice Landlord’s right to thereafter render a Tax Statement, or a revised or
corrected Tax Statement, for such Tax Year or any other Tax Year, nor shall the
rendering of a revised or corrected Tax Statement for any Tax Year prejudice
Landlord’s right to thereafter render a further revised or corrected Tax
Statement for such Tax Year. Only Landlord shall be eligible to institute tax
reduction or other proceedings to challenge Taxes or to reduce the assessed
valuation of the Real Property. Tenant hereby waives any right Tenant may now or
in the future have to institute any such proceedings or otherwise challenge
Taxes. Nothing contained in this Lease shall obligate Landlord to bring any
application or proceeding seeking a reduction in Taxes or assessed valuation. If
the Taxes payable for the Base Tax Year or any other Tax Year are later reduced
by final determination of legal proceedings, settlement, or otherwise, such
reduced amount as finally determined shall become the Base Tax Amount (in the
event of a reduction applicable to the Base Tax Year) or the Taxes for the Tax
Year in question (in the event of a reduction applicable to a Tax Year other
than the Base Tax Year) for purposes of this Lease and such reduced amount shall
be used to determine the Tax Payment payable by Tenant applicable to any Tax
Year affected by such reduction, and all Tax Payments theretofore paid or
payable under this Lease shall be recomputed on the basis of such reduction,
and, if applicable, Tenant shall pay to Landlord as Additional Rent, within
thirty (30) days after being billed therefor, any deficiency between the amount
of such payments computed prior to the reduction and the amount thereof due as a
result of such recomputation.

15

8. UTILITIES FURNISHED TO DEMISED
PREMISES.

     (a)
Electricity. Landlord, subject to and in accordance with the provisions of this
Section, shall furnish electricity to Tenant for use in the Premises:

          (i) Landlord, at Tenant’s expense, shall furnish, install and
maintain one or more electrical submeters to measure Tenant’s demand and
consumption with respect to the electricity furnished by Landlord (such
submeter(s) being herein called “Tenant’s
Submeter”). Tenant, throughout the Term,
shall pay Landlord for such electricity as measured by Tenant’s Submeter at the
rates set forth in, and otherwise pursuant to the provisions of, this Section.
Tenant, for any billing period, shall pay Landlord an amount determined by
applying (x) Tenant’s electrical demand (measured in KWs) and consumption
(measured in KWHRs) for such period, as measured by Tenant’s Submeter, to (y)
the rate schedule (inclusive of all taxes, surcharges and other charges payable
thereunder or in connection therewith) of the utility company serving the
Building (herein called the “Utility Company”) which is charged to Landlord for
such period. Tenant shall pay the amount due for any billing period within
thirty (30) days after being billed therefor, which bills Landlord may render
from time to time (but no more frequently than monthly). Tenant shall also pay
to Landlord an amount equal to the actual out-of-pocket costs reasonably
incurred by Landlord to a meter company or otherwise in respect of having
Tenant’s Submeter read and having bills prepared and delivered based upon such
readings. Landlord shall not be required to furnish, and Tenant shall not
install a connected load (including all of Tenant’s equipment and systems, but
excluding the Building Systems other than HVAC) or otherwise draw, in excess of
six (6) watts per usable square foot of Premises. If any tax is imposed upon
Landlord’s receipts from the sale or resale of electric energy to Tenant
(directly or indirectly through a general tax on such receipts) by any federal,
state or municipal authority, then Tenant shall pay, or reimburse Landlord, such
taxes (or its share thereof) in addition to the submetered charges.

          (ii) Tenant will at all times comply with all rules and
regulations of the utility company serving the Building, to the extent the same
are applicable to its use of electric energy in the Premises. Tenant’s use of
electric energy shall never exceed the capacity of the then existing feeders,
risers or wiring installations serving the Premises. Landlord shall not in any
way be liable or responsible to Tenant for any loss, damage or expense which
Tenant may sustain or incur if (x) the supply of electric energy to the Premises
is temporarily interrupted, or (y) the quantity or character of electric service
is changed or is no longer available or suitable for Tenant’s requirements,
except to the extent resulting from the willful misconduct or negligence of
Landlord. Tenant, at its option, may request Landlord to furnish and install all
replacement lighting, tubes, lamps, bulbs and ballasts required in the Premises;
and in such event, Tenant shall pay to Landlord or its designated contractor,
within thirty (30) days after demand therefor, the then established
Building-wide charges therefor of Landlord or its designated contractor, as the
case may be.

16

     (b)
Tenant shall pay, as Additional Rent, for all utilities (including, without
limitation, telephone, cable, condenser water and heat, ventilation and
air-conditioning (“HVAC”) service) that are furnished to or consumed within the
Premises. HVAC equipment servicing the Premises shall be connected, and be
measured by, Tenant’s submeter. If a submeter or direct meter (including
Tenant’s submeter) is installed for any particular utility, Tenant shall pay for
its use and consumption of such utility based on its actual meter usage. Tenant
shall pay all utility bills when due to the billing authority or if Tenant is
paying to the Landlord, within ten (10) days after receipt by Tenant of the
applicable utility bill from Landlord. Landlord shall have the right, to be
exercised by written notice to Tenant, to the extent that the same may be
lawfully done, to direct Tenant to contract directly with the utility provider
supplying electricity, telephone, cable, gas and other utilities, if any, to the
Building, in which event Tenant shall pay all charges therefor directly to the
utility provider. Landlord shall have the right of access to the Premises from
time to time with reasonable prior written notice to Tenant (except in the event
of an emergency when no such notice shall be required) to install or remove
utility facilities.

9. SERVICES. 

     (a)
Subject to payment by Tenant of Operating Expenses and the charges for utilities
as provided in Sections 7 and 8 above, Landlord shall provide or cause to be
provided the following services throughout the Term:

          (i) Provide water for drinking, lavatory and toilet purposes
on the floor(s) on which the Demised Premises are located;

          (ii) Furnish heat, ventilation and air-conditioning
(“HVAC Service”) to the Demised Premises for ordinary office purposes on a 24/7
basis;

          (iii) Furnish electricity to the Demised Premises for ordinary
office purposes. Tenant’s use of electrical service shall not exceed, either in
voltage, rated capacity or overall load, that which Landlord determines is
standard for office use at the Building.

          (iv) Provide bonded janitorial services in accordance with
Landlord’s building standard janitorial specifications as set forth on
Exhibit “D” attached hereto. Any and all additional or specialized janitorial
service desired by Tenant shall be contracted for by Tenant directly with a
vendor approved by Landlord (such approval not to be unreasonably withheld), and
the cost and payment thereof shall be the sole responsibility of Tenant;
and

          (v) Provide access to the Building and the Demised Premises
twenty-four hours per day, seven days per week, subject to reasonable security
measures as may be implemented by Landlord. 

17

     (b) If
Tenant requests permission to consume excess or supplemental electrical service,
HVAC Service or other utility services, Landlord may withhold its consent or
condition its consent upon conditions that Landlord reasonably determines, and
in the event such consent is granted, all costs for such additional service,
including, without limitation, required changes, replacements or additions to
the existing facilities servicing the Demised Premises, shall be paid for by
Tenant at Tenant’s sole cost and expense. Without limiting the foregoing, if
Tenant’s usage of electricity or other utility service is substantially in
excess of that for standard office tenancies and if such utility service to the
Demised Premises is not separately metered to the Demised Premises pursuant to
Section 8 above, Landlord reserves the right to adjust Tenant’s pro-rata share
of such charges, as referred to in Section 8(a) above, in order to equitably
reflect a surcharge for such excess use.

     (c)
Tenant shall directly reimburse Landlord for any supplemental services requested
by Tenant and supplied by Landlord, said reimbursement to be paid within ten
(10) days after Tenant’s receipt of Landlord’s invoice therefor. Notwithstanding
the foregoing, Landlord shall have no obligation to provide any such
supplemental services to Tenant.

     (d) It is
understood that Landlord does not warrant that any of the services referred to
in this Section will be free from interruption from causes beyond the reasonable
control of Landlord. No interruption of service shall ever be deemed an eviction
or disturbance of Tenant’s use and possession of the Demised Premises or any
part thereof or render Landlord liable to Tenant for damages, permit Tenant to
abate Rent or otherwise relieve Tenant from performance of Tenant’s obligations
under this Lease. Notwithstanding the foregoing, if any “Essential Service” (as
hereinafter defined) which Landlord is required to provide to the Demised
Premises pursuant to the terms of this Section is interrupted due to the
negligence of Landlord, its agents or employees (a “Service Interruption”) and such
Service Interruption causes all or a material portion of the Demised Premises to
be untenantable (the “Affected
Space”) for a period of five (5) or more
consecutive business days after written notice thereof from Tenant to Landlord
(the “Interruption Notice”), then, provided that Tenant is neither conducting business
nor operating in the Affected Space, the Annual Base Rent shall abate in the
proportion that the rentable square footage of the Affected Space in which
Tenant is not operating, bears to the rentable square footage of the Demised
Premises, which abatement shall commence on the sixth (6th) business day
following Landlord’s receipt of the Interruption Notice and expire on the
earlier of Tenant’s re-occupancy of the Affected Space or the date that the
Service Interruption is remedied. Notwithstanding the foregoing, in no event
shall Tenant be entitled to abatement or any other remedy if the interruption of
any Essential Service is caused in whole or in part by the negligence of Tenant,
its agents or employees. Tenant agrees that the rental abatement described
herein shall be Tenant’s sole remedy in the event of a Service Interruption and
Tenant hereby waives any other rights against Landlord, at law or in equity, in
connection therewith, including, without limitation, any right to terminate this
Lease, to claim an actual or constructive eviction, or to bring an action for
money damages. For purposes of this Section, an “Essential Service” shall mean the
service provided by the HVAC systems, plumbing and waste disposal systems and
electrical systems (to the extent supplied by Landlord) and lack of access to
the Demised Premises. Nothing contained herein shall limit Tenant’s right to
abatement in the case of a fire or other casualty or condemnation as provided in
the “Fire or Casualty” or “Condemnation” Sections of this Lease.

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10. CARE OF DEMISED PREMISES.
Tenant agrees, on behalf of itself, its
employees and agents that it shall:

     (a)
Comply at all times with any and all federal, state and local statutes,
regulations, ordinances, and other requirements of any governmental authorities
having or claiming jurisdiction over the Building, or any portion thereof, and
of the insurers insuring the Building relating to Tenant’s use or occupancy of
the Demised Premises or Tenant’s alteration of the Demised Premises; 

     (b)
Maintain, repair and replace the interior, non-structural portions of the
Demised Premises so as to keep same in safe, good order and repair, as and when
needed, and replace all glass broken by Tenant, its agents, employees or
invitees with glass of the same quality as that broken, except for glass broken
by fire and extended coverage-type risks, and commit no waste in the Demised
Premises;

     (c) Not
overload, damage or deface the Demised Premises or do any act which might make
void or voidable any insurance on the Demised Premises or the Building or which
may render an increased or extra premium payable for insurance (and without
prejudice to any right or remedy of Landlord regarding this subparagraph,
Landlord shall have the right to collect from Tenant, upon demand, any such
increase or extra premium);

     (d) Intentionally
omitted.

     (e) Not
install any equipment of any kind whatsoever which might necessitate any
changes, replacements or additions to any of the heating, ventilating,
air-conditioning, electric, sanitary, elevator or other systems serving the
Demised Premises or any other portion of the Building, or to any of the services
required of Landlord under this Lease, without the prior written approval of
Landlord, which shall not be unreasonably withheld, and in the event such
consent is granted, such replacements, changes or additions shall be paid for by
Tenant at Tenant’s sole cost and expense. At the expiration or earlier
termination of this Lease, Tenant shall pay Landlord’s cost of restoring such
systems to their condition prior to such replacements, changes or
additions;

     (f) Not
place signs on the Demised Premises except for (i) a sign located in the lobby
immediately adjacent to the Demised Premises, and entirely within the Demised
Premises and which are not visible from the exterior of the Demised Premises,
and (ii) signs on entrance doors to the Demised Premises; provided that in each
case, the size, material, design, lettering, text and location are approved by
Landlord;

     (g) Not
install or authorize the installation of any coin operated vending machine,
except for the dispensing of snacks, coffee, and other similar items to the
employees of Tenant for consumption upon the Demised Premises; and

     (h)
Observe the rules and regulations annexed hereto as Exhibit “C” as Landlord
may from time to time amend the same, for the general safety, comfort and
convenience of Landlord, occupants and tenants of the Building.

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11. MECHANICS’ LIENS.
In connection with Tenant performing any
alterations to the Demised Premises for which a lien could be filed against the
Demised Premises or the Building, Tenant shall, on a monthly basis while such
alterations are being performed, provide written evidence to the satisfaction of
Landlord that the costs of such alterations are being paid by Tenant on a
monthly basis and shall have its contractor execute and deliver to Tenant a
final release of lien with respect to the alterations completed, in form
satisfactory to Landlord, and provide Landlord with an original copy thereof.
Tenant shall, within thirty (30) days after notice from Landlord, or discharge,
by bonding or otherwise, any mechanics’ lien for materials or labor claimed to
have been furnished to the Demised Premises on Tenant’s behalf (except for work
contracted for by Landlord) and shall indemnify and hold harmless Landlord from
any and all claims, costs, damages, loss, liabilities and expenses (including,
without limitation, reasonable attorney’s fees) incurred by Landlord in
connection therewith.

12. REPAIRS AND MAINTENANCE.
Landlord shall keep and maintain the Common
Areas of the Building clean and in good working order, including maintaining any
landscaping, removing (or causing to be removed) snow, and cleaning the Common
Areas. Landlord shall further make, or cause to be made, all necessary repairs
to the structure and exterior of the Building, as well as to the roof,
mechanical, HVAC, electrical and plumbing systems servicing Building, provided,
that Landlord shall have no obligation to make any repairs until Landlord shall
have received written notice of the need for such repair. Landlord shall further
make, or cause to be made, all necessary repairs to any elevators in the
Building. The cost of the foregoing maintenance and repairs shall be included in
Operating Expenses except to the extent expressly excluded therefrom pursuant to
Section 7. Notwithstanding the foregoing, all repairs made necessary by Tenant’s
specific use, occupancy or alteration of the Building, or by the negligent acts
of Tenant, its agents, employees or invitees (and, without limiting the
foregoing, any repairs or maintenance required to any specialized or
supplemental equipment installed by or for Tenant and not of a “building
standard” nature), shall be made at the sole cost and expense of Tenant to the
reasonable satisfaction of Landlord.

13. SUBLETTING AND
ASSIGNING.

     (a)
Tenant shall not assign this Lease or sublet all or any portion of the Demised
Premises, whether voluntarily or by operation of law, without first obtaining
Landlord’s prior written consent thereto, not to be unreasonably withheld,
conditioned or delayed. Tenant acknowledges that, without in any way limiting
the foregoing, Landlord shall have the right to withhold its consent if, by way
of example and not limitation, the reputation or financial responsibility of a
proposed assignee or subtenant is unsatisfactory to Landlord, if such
subtenant’s or assignee’s business is not for the Permitted Use or is otherwise
not consonant with that of the other tenants of the Building or would
significantly increase the density of personnel use, if the proposed sublease or
assignment is to a tenant of the Building or to a prospect with whom Landlord is
then negotiating or has recently negotiated, if the proposed sublease is
advertised or otherwise publicly marketed for a rental rate less than the market
rate then established by Landlord for space in the Building, or if Tenant is in
Default in the payment or performance of any of its obligations hereunder. In
addition, Tenant shall not mortgage, pledge or hypothecate this Lease. Any
assignment, sublease, mortgage, pledge or hypothecation in violation of this
Section shall be void at the option of Landlord and shall constitute an
immediate Default hereunder. Tenant shall not advertise or otherwise publicly
market the Premises or any portion thereof for a rental rate less than the
market rate then established by Landlord for space in the Building, however,
provided Tenant has complied with the foregoing, Landlord’s consent to a
sublease shall not be withheld by virtue of the fact that such sublease is at a
rental rate less than such market rate.

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     (b) A
transfer or sale by Tenant of 50% or more of the voting shares, partnership or
membership interests, or other legal or beneficial interests in Tenant shall be
deemed to be an assignment of this Lease by Tenant requiring Landlord’s prior
written consent pursuant to subparagraph (a), above. Notwithstanding the
foregoing, so long as Tenant is not in Default under this Lease beyond, grace,
cure or notice period upon prior written notice to Landlord, Tenant shall have
the right, without Landlord’s consent, to sublet all or a portion of the Demised
Premises or to assign this Lease to any of the following entities (each, a
“Permitted Transferee”): (i) to an entity now or hereafter affiliated with
Tenant (including a subsidiary, controlling operation or other affiliate); (ii)
to any entity which may result from a reorganization, merger or consolidation by
or with Tenant or an affiliate of Tenant or its parent company; or (iii) to any
entity to which Tenant is selling all or substantially all of its assets or
stock; provided however, that, in each such case, such Permitted Transferee has
a net worth (excluding intangibles) equal to or greater than the net worth
(excluding intangibles) of Tenant as of the date of this Lease or as of the date
of the transfer, whichever is greater.

     (c)
Notwithstanding the foregoing, any such subletting or assignment (whether or not
requiring Landlord’s consent) shall not in any way relieve or release Tenant
from liability for the payment and performance of all obligations under this
Lease (including, if applicable, obligations relating to any extension of the
Term), and Tenant shall remain primarily liable to Landlord for all such
obligations without release or limitation by reason of any action or inaction by
Landlord (including without limitation any failure to take any action in the
enforcement of this Lease against the assignee or subtenant, any release or
inaction with respect to any security or collateral (including without
limitation any failure to perfect any interest therein), any forbearance, any
failure to provide any notice to Tenant, or any modification or amendment to
this Lease). Furthermore, no assignment will be valid unless the assignee shall
execute and deliver to Landlord an assumption of liability agreement in form
satisfactory to Landlord, including an assumption by the assignee of all of the
obligations of Tenant and the assignee’s ratification of and agreement to be
bound by all the provisions of this Lease; and no subletting will be valid
unless Tenant and the subtenant have executed and delivered to Landlord a
sublease agreement pursuant to which such subtenant agrees that the sublease
shall be subject to all of the terms and conditions of this Lease.

     (d) In
the case of a sublease requiring Landlord’s consent hereunder, Tenant shall pay
to Landlord, as Additional Rent hereunder, one hundred percent (100%) of all
subrents or other sums or economic consideration received by Tenant (after
deducting Tenant’s reasonable costs of reletting), whether denominated as
rentals or otherwise, in excess of the monthly sums which Tenant is required to
pay under this Lease. In the case of an assignment requiring Landlord’s consent
hereunder, Tenant shall pay to Landlord, as Additional Rent hereunder, one
hundred percent (100%) of all sums or economic consideration received by Tenant
for the assignment (after deducting Tenant’s reasonable costs in connection with
the assignment), whether denominated as rentals or otherwise.

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     (e) When
Tenant requests Landlord’s consent to an assignment or sublease, it shall notify
Landlord in writing of (i) the name and address of the proposed assignee or
subtenant; (ii) the nature and character of the business of the proposed
assignee or subtenant; (iii) financial information including financial
statements of the proposed assignee or subtenant; (iv) the rental rate and
material monetary terms, such as rent concessions, work, or work allowance, at
which Tenant intends to sublet any of the Demised Premises or assign this Lease,
the proposed commencement date of the sublet or assignment and, in the case of a
sublet, the portion of the Demised Premises sought to be sublet and the length
of the sublet, and (v) a copy of the proposed sublet or assignment
documentation. Tenant shall thereafter promptly provide to Landlord any and all
other information and documents reasonably requested by Landlord in order to
assist Landlord with its consideration of Tenant’s request hereunder.

     (f)
Notwithstanding anything contained in this Article 13 or elsewhere in this Lease
to the contrary, Landlord shall have ten (10) business days after receipt of the
written notice furnished pursuant to subsection (e) above to elect to terminate
this Lease in its entirety if the proposed transaction was an assignment or a
sublease of substantially all of the Demised Premises, or to terminate this
Lease only with respect to the space proposed to be sublet, if the proposed
transaction was a sublease of less than substantially all of the Demised
Premises, in each case by written notice to Tenant, in which event this Lease
shall automatically terminate with respect to all or such portion of the Demised
Premises as the case may be, on the ninetieth (90th) day following Tenant’s
receipt of the such notice with the same force and effect as if the termination
date had been designated as the expiration date of this Lease. In the event that
Landlord elects not to terminate the Lease wholly or in part as set forth above,
then the remaining provisions of this Section 13 shall be applicable.

     (g) No
subletting, occupancy or collection of rent with respect to a subtenant or
assignee shall be deemed the acceptance of the subtenant or occupant as tenant
under this Lease unless otherwise consented to by Landlord. The consent by
Landlord to an assignment or subletting where such Landlord consent is required
shall not in any respect be construed to relieve Tenant from obtaining the
express consent in writing of Landlord to any further assignment or
subletting.

     (h)
Tenant shall pay to Landlord, promptly upon demand therefor, all reasonable
out-of-pocket costs and expenses (including, without limitation, reasonable
attorneys’ fees and disbursements) incurred by Landlord in connection with any
assignment of this Lease or sublease of all or any part of the Demised
Premises.

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14. FIRE OR CASUALTY.
In the event that the whole or a substantial
part of the Building or the Demised Premises is damaged or destroyed by fire or
other casualty, then, within forty-five (45) days after the date that Landlord
receives notice of such fire or other casualty, Landlord shall provide written
notice to Tenant as to whether Landlord intends to repair or rebuild and the
estimated time period for the completion thereof. In the event that Landlord’s
notice provides that the repairs to the Demised Premises are estimated to
require more than two hundred seventy (270) days to complete, then Tenant
shall have the right to terminate this Lease by providing written notice thereof
to Landlord within thirty days (30) after receipt of Landlord’s notice. In the
event that Landlord elects to repair or rebuild (and Tenant does not have the
right to, or has elected not to, terminate this Lease in accordance with the
foregoing sentence), Landlord shall thereupon cause the damage (excepting,
however, Tenant’s furniture, fixtures, equipment and other personal property in,
and all alterations and improvements performed by Tenant to, the Demised
Premises, which shall be Tenant’s responsibility to restore) to be repaired with
reasonable speed, subject to delays which may arise by reason of adjustment of
loss under insurance policies and for delays beyond the reasonable control of
Landlord, it being further understood that in such case this Lease shall remain
in effect regardless of whether the actual time for completion of restoration
shall differ from the initial estimate; provided, however, that if the actual
repair time shall exceed two hundred seventy (270) days, subject to Force
Majeure, then Tenant shall have the option to terminate this Lease by giving
Landlord sixty (60) days’ written notice of such election, and in the event such
repairs are not completed during such sixty (60) day period then this Lease
shall terminate on the date set forth in Tenant’s notice as if such date were
the date set forth herein for the expiration of the Term of this Lease, however
if such repairs are completed within such sixty (60) day period, then Tenant’s
termination notice shall be null and void and this Lease shall remain in full
force and effect. (The insurance deductible shall not be included in calculating
whether sufficient funds are available.) In the event the damage shall be so
extensive that Landlord shall decide not to repair or rebuild, or if any
mortgagee, having the right to do so, shall direct that the insurance proceeds
are to be applied to reduce the mortgage debt rather than to the repair of such
damage, this Lease shall, at the option of Landlord, be terminated effective as
of the date of casualty. To the extent and for the time that the Demised
Premises are rendered untenantable on account of fire or other casualty, the
Rent shall proportionately abate. 

15. EMINENT DOMAIN. If the whole or a substantial part of the Building is taken or
condemned for a public or quasi-public use under any statute or by right of
eminent domain by any competent authority or sold in lieu of such taking or
condemnation, such that in the opinion of Landlord the Building is not
economically operable as before without substantial alteration or
reconstruction, this Lease shall automatically terminate on the date that the
right to possession shall vest in the condemning authority (the “Taking
Date”), with Rent being adjusted to said Taking Date, and Tenant shall have
no claim against Landlord for the value of any unexpired term of this Lease.
Tenant shall have no claim against Landlord and no claim or right to any portion
of any amount that may be awarded as damages or paid as a result of any taking,
condemnation or purchase in lieu thereof; all rights of Tenant thereto are
hereby assigned by Tenant to Landlord. If any part of the Demised Premises is so
taken or condemned and this Lease is not terminated in accordance with the
foregoing provisions of this Section, this Lease shall automatically terminate
as to the portion of the Demised Premises so taken or condemned, as of the
Taking Date, and this Lease shall continue in full force as to the remainder of
the Demised Premises, with Rent abating only to the extent of the Demised
Premises so taken or condemned; provided, however, that if the remaining portion
of the Demised Premises is no longer suitable for the Permitted Use, then Tenant
shall have the right to terminate this Lease by providing written notice thereof
to Landlord within thirty (30) days after the Taking Date. Tenant may pursue
Tenant’s own claim for damages in any such taking or condemnation, provided,
however, Tenant’s claim may in no way impact upon, reduce or otherwise interfere
with Landlord’s claim or award. 

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16. INSOLVENCY. Each of the following shall constitute a breach of this Lease
by Tenant: (a) The appointment of a receiver or trustee to take possession of
all or a portion of the assets of Tenant or any guarantor of Tenant’s
obligations hereunder (a “Guarantor”), or (b) an assignment by
Tenant or any Guarantor for the benefit of creditors, or (c) the institution by
or against Tenant or any Guarantor of any proceedings for bankruptcy or
reorganization under any state or federal law (unless in the case of involuntary
proceedings, the same shall be dismissed within forty-five (45) days after
institution), or (d) any execution issued against Tenant or any Guarantor which
is not stayed or discharged within fifteen (15) days after issuance of any
execution sale of the assets of Tenant. Landlord in the event of such a breach,
shall have, without need of further notice, the rights enumerated in Section 17
herein.

17. DEFAULT.

     (a)
“Event of Default” shall mean any instance in which (i) Tenant shall fail to pay
Rent or any other sum payable to Landlord hereunder when due and such failure
continues for more than three (3) business days after written notice thereof
from Landlord to Tenant (provided, however, that Landlord shall not be required
to provide written notice to Tenant more than two (2) times during any twelve
(12) month period), or (ii) any of the events specified in Section 16 occur; or
(iii) Tenant sublets the Demised Premises or assigns this Lease in violation of
the provisions of Section 13 hereof and fails to cure such violation within five
(5) days after written notice from Landlord; or (iv) Tenant fails to maintain
the insurance required pursuant to Section 19 hereof and fails to cure such
violation within five (5) days after written notice from Landlord; or (v) Tenant
fails to pay Landlord the Security Deposit within the time periods prescribed by
Section 6 hereof and fails to cure such violation within five (5) days after
written notice from Landlord; or (vi) Tenant fails to perform or observe any of
the other covenants, terms or conditions contained in this Lease and such
failure continues for more than thirty (30) days after written notice thereof
from Landlord (or such longer period not to exceed sixty (60) days in the
aggregate as is reasonably required to correct any such default, provided Tenant
promptly commences and diligently continues to effectuate a cure). Upon the
occurrence of an Event of Default, notwithstanding any former breach of covenant
or waiver thereof in a former instance, Landlord, in addition to all other
rights and remedies available to it by law or equity or by any other provisions
hereof, may at any time thereafter:

          (1) declare to be immediately due and payable, a sum equal to
the Accelerated Rent Component (as hereinafter defined), and Tenant shall remain
liable to Landlord as hereinafter provided; 

          (2) terminate this Lease upon written notice to Tenant and, on
the date specified in said notice, this Lease and the term hereby demised and
all rights of Tenant hereunder shall expire and terminate and Tenant shall
thereupon quit and surrender possession of the Demised Premises to Landlord in
the condition elsewhere herein required, and Tenant shall remain liable to
Landlord as hereinafter provided; and/or 

          (3) to the extent permissible by law, enter upon and repossess
the Demised Premises, by summary proceedings, ejectment or other court action,
or otherwise in accordance with law, and dispossess Tenant and remove Tenant and
all other persons and property from the Demised Premises, without being liable
to Tenant for prosecution or damages therefor, and Tenant shall remain liable to
Landlord as hereinafter provided.

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     (b) For
purposes herein, the Accelerated Rent Component shall mean the aggregate of:

          (i) all Rent and other charges, payments, costs and expenses
due from Tenant to Landlord and in arrears at the time of the election of
Landlord to recover the Accelerated Rent Component; 

          (ii) the Annual Base Rent reserved for the then entire
unexpired balance of the Term (taken without regard to any early termination of
the Term by virtue of any Default or any early termination rights set forth
herein), plus all other charges, payments, costs and expenses herein agreed to
be paid by Tenant up to the end of the Term which shall be capable of precise
determination at the time of Landlord’s election to recover the Accelerated Rent
Component, discounted to then present value at the then Prime Rate of CitiBank,
N.A.(the “Prime Rate”) and 

          (iii) Landlord’s good faith estimate of all charges, payments,
costs and expenses herein agreed to be paid by Tenant up to the end of the Term
which shall not be capable of precise determination as aforesaid, discounted to
then present value at the Prime Rate (and for such purposes no estimate of any
component of the Additional Rent to accrue pursuant to the provisions of
Sections 7 and Section 8 hereof shall be less than the amount which would be due
if each such component continued at the highest monthly rate or amount in effect
during the twelve (12) months immediately preceding the default). 

     (c) In
the event that Landlord shall, after Default by Tenant, recover the Accelerated
Rent Component and/or retake possession of the Demised Premises, then Landlord
agrees to use reasonable efforts to relet the Demised Premises; provided,
however, in no event shall Landlord be required to (i) lease the Demised
Premises over other available space in the Building, (ii) accept a below-market
rental rate for the Demised Premises, (iii) accept any tenant whose
creditworthiness is unsatisfactory to Landlord, in its sole reasonable
discretion, or (iv) accept any tenant whose business is not compatible with the
other tenants of the Building, as determined by Landlord in its sole reasonable
discretion. All costs of reletting, including, without limitation, the cost of
such repairs, changes, alterations and additions, brokerage commissions and
legal fees, shall be charged to and be payable by Tenant as Additional Rent
hereunder. Any sums collected by Landlord from any new tenant shall be credited
against the balance of the Annual Base Rent and Additional Rent due hereunder as
aforesaid. 

     (d)
Tenant shall, with respect to all periods of time up to and including the
Expiration Date (as same may be extended pursuant hereto, disregarding any
earlier termination as a result of a Default or otherwise) remain liable to
Landlord as follows: 

          (i) In the event of termination of this Lease on account of
Tenant’s Default or breach, Tenant shall remain liable to Landlord for damages
equal to the rent and other charges payable under this Lease by Tenant as if
this Lease were still in effect, less the net proceeds of any reletting after
deducting all costs incident thereto (including without limitation all
repossession costs, brokerage and management commissions, operating and legal
expenses and fees, alteration costs and expenses of preparation for reletting)
and to the extent such damages shall not have been recovered by Landlord by
virtue of payment by Tenant of the Accelerated Rent Component (but without
prejudice to the right of Landlord to demand and receive the Accelerated Rent
Component), such damages shall be payable to Landlord, at Landlord’s option,
monthly upon presentation to Tenant of a bill for the amount due or at such
other intervals or times as Landlord shall determine.

25

          (ii) In the event and so long as this Lease shall not have been
terminated after a Default or breach by Tenant, the rent and all other charges
payable under this Lease shall be reduced by the net proceeds of any reletting
by Landlord (after deducting all costs incident thereto as above set forth) and
by any portion of the Accelerated Rent Component paid by Tenant to Landlord (but
without prejudice to the right of Landlord to demand and receive the Accelerated
Rent Component), and any amount due to Landlord shall be payable monthly, at
Landlord’s option, upon presentation to Tenant of a bill for the amount due, or
at such other intervals or times as Landlord shall determine.

     (e) If Landlord
shall, after Default or breach by Tenant, recover the Accelerated Rent Component
from Tenant and it shall be determined at the expiration of the term of this
Lease (taken without regard to early termination for Default) that a credit is
due Tenant because the net proceeds of reletting, as aforesaid, plus the amounts
paid to Landlord by Tenant exceed the aggregate of rent and other charges
accrued in favor of Landlord to the end of the term, Landlord shall refund such
excess to Tenant (but not an amount more than the rent and additional rent paid
by Tenant for any particular period of time), without interest, promptly after
such determination.

     (f) Nothing
contained in this Lease shall limit or prejudice the right of Landlord to prove
for and obtain as damages incident to a termination of or Default under this
Lease, in any bankruptcy, reorganization or other court proceedings, the maximum
amount allowed by any statute or rule of law in effect when such damages are to
be proved.

     (g) Landlord shall
in no event be responsible or liable for any failure to relet the Demised
Premises or any part thereof, or for any failure to collect any Rent due upon a
reletting, provided Landlord uses reasonable efforts to relet the Demised
Premises.

     (h) If any action
or proceeding is brought by either party against the other party pertaining to
or arising out of this Lease, the finally prevailing party shall be entitled to
recover all costs and expenses, including reasonable attorney’s fees incurred on
account of such action or proceeding.

     (i) If Rent or any
other sum due from Tenant to Landlord shall be overdue for more than five (5)
business days after written notice from Landlord, it shall thereafter bear
interest at ten percent (10%) per annum from the date it first became due until
paid; provided, however, that nothing contained herein shall excuse or nullify
any breach or Default based on such failure to pay.

     (j) All remedies
available to either party hereunder and at law and in equity shall be cumulative
and concurrent. No termination of this Lease nor taking or recovering possession
of the Demised Premises shall deprive Landlord of any remedies or actions
against Tenant for Rent, for charges or for damages for the breach of any
covenant, agreement or condition herein contained, nor shall the bringing of any
such action for Rent, charges or breach of covenant, agreement or condition, nor
the resort to any other remedy or right for the recovery of Rent, charges or
damages for such breach be construed as a waiver or release of the right to
insist upon the forfeiture and to obtain possession. No reentering or taking
possession of the Demised Premises, or making of repairs, alterations or
improvements thereto, or reletting thereof, shall be construed as an election on
the part of Landlord to terminate this Lease unless written notice of such
election to terminate is given by Landlord to Tenant.

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     (k) Unless
specifically stating otherwise, no waiver of any provision of this Lease shall
be implied by any failure of Landlord or Tenant to enforce any remedy allowed
for the violation of such provision, even if such violation is continued or
repeated, and no express waiver shall affect any provision other than the one(s)
specified in such waiver and only for the time and in the manner specifically
stated. No receipt of monies by Landlord from Tenant after the termination of
this Lease shall in any way alter the length of the Term or of Tenant’s right of
possession hereunder or after the giving of any notice shall reinstate, continue
or extend the Term or affect any notice given to Tenant prior to the receipt of
such moneys, it being agreed that after the service of notice or the
commencement of a suit or after final judgment for possession of the Demised
Premises, Landlord may receive and collect any Rent due, and the payment of said
Rent shall not waive or affect said notice, suit or judgment. The receipt by
Landlord of a lesser amount than the Annual Base Rent or any Additional Rent due
shall not be construed to be other than a payment on account of the Annual Base
Rent or Additional Rent then due, and any statement on Tenant’s check or any
letter accompanying Tenant’s check to the contrary shall not be deemed an accord
and satisfaction, and Landlord may accept such payment without prejudice to
Landlord’s right to recover the balance of the Annual Base Rent or Additional
Rent due or to pursue any other remedies provided in this Lease or
otherwise.

18. LANDLORD’S
RIGHT TO CURE. Landlord may (but shall not be
obligated), on fifteen (15) days written notice to Tenant (except that no notice
need be given in case of emergency) cure on behalf of Tenant any Default
hereunder by Tenant, and the cost of such cure (including any attorney’s fees
incurred) shall be deemed Additional Rent payable upon
demand.

19.
INSURANCE.

     (a) Tenant, at its
expense, shall maintain, at all times during the Term, (i) all-risk property
insurance covering all perils and contingencies as may be required by Landlord
or any mortgagee or underlying lessor, including, in all events, coverage for
fire, lightning, windstorm, hail, explosion, terrorism, vandalism and malicious
mischief, riot and civil commotion, and smoke, with a replacement cost
endorsement insuring one hundred (100%) percent of the replacement cost of all
Tenant’s Improvements and Tenant’s Property, (ii) commercial general liability
insurance, including blanket contractual liability coverage, with limits of not
less than Two Million Dollars ($2,000,000) combined single limit for personal
injury and property damage liability in any one occurrence together with
umbrella or excess liability coverage in an amount not less than Two Million
Dollars ($2,000,000), (iii) business interruption insurance or rent loss
insurance (or a comparable policy of insurance providing the same benefits), in
minimum amounts of not less than twelve (12) times the monthly Annual Base Rent
and estimated Additional Rent then in effect during any Lease Year; (iv)
comprehensive automobile liability insurance (covering all owned, non-owned and
hired vehicles), in an amount of not less than One Million Dollars ($1,000,000)
for each accident; 

27

(v) worker’s
compensation insurance, in minimum limits as required by the State of New Jersey
(as the same may be amended from time to time), for all employees of Tenant
engaged in any work on or about the Premises, (vi) employer’s liability
insurance, in an amount not less than One Million Dollars ($1,000,000) for each
accident, One Million Dollars ($1,000,000) disease-policy limit, and One Million
Dollars ($1,000,000) disease-each employee, (or such greater amount as may be
mandated by Legal Requirements), for all employees of Tenant engaged in any work
on or about the Premises, (vii) in amplification of the insurance requirements
relating to Tenant’s Alterations set forth in Article 42, below, but without
limitation thereof, for any period during which construction is being performed
by or on behalf of Tenant in or about the Premises, builder’s all risk insurance
(completed value non-reporting form), covering all perils and contingencies as
may be required by Landlord or its Mortgagee, including, in all events, coverage
for vandalism and malicious mischief with a replacement cost endorsement, (viii)
if Tenant shall use the Premises for entertaining or for any other social
function (including parties and/or receptions for clients, customers, employees
and/or others) at which any alcoholic beverages are served, Tenant shall obtain
an endorsement to its policy of commercial general liability insurance (if such
coverage is not already provided by such policy) providing host liquor liability
coverage of not less than One Million Dollars ($1,000,000) for bodily injury and
property damage liability in anyone occurrence and, if Tenant shall have
contracted with a third party to serve such alcoholic beverages, Tenant shall
also cause such third party to obtain an endorsement to its policy of commercial
general liability insurance (if such coverage is not already provided by such
policy) providing liquor liability coverage of not less than One Million Dollars
($1,000,000) for bodily injury and property damage liability in anyone
occurrence; provided, however, that nothing contained in this Section 19(a)
shall be construed to permit Tenant to use the Premises for any use or purpose
other than the Permitted Use, and (ix) such other insurance, with such limits,
as Landlord shall from time to time reasonably require Tenant to maintain.
Landlord may, from time to time, require that the limits of the aforesaid
insurance be increased. The deductibles of any insurance required to be
maintained by Tenant shall be in amounts reasonably satisfactory to Landlord.
Landlord, Meritage Properties, Linque Management Company, Inc. (and/or, at
Landlord’s option, any mortgagee or underlying lessor), shall be named as a
“loss payee” under the insurance policies providing “all risk” property coverage
on Tenant’s Improvements. Landlord and its managing agent, if any, and each
mortgagee and underlying lessor whose name and address shall previously have
been furnished to Tenant in writing shall be named as additional insureds under
Tenant’s insurance policies providing general liability coverage. Each of the
insurance policies required to be maintained pursuant to this Section 19(a)
shall be issued by companies licensed to do business in the State of New Jersey
having a Best’s rating of A+:VII or better, and otherwise reasonably acceptable
to Landlord, and shall contain a provision whereby the same cannot be cancelled
or modified unless Landlord and any additional insureds are given at least
thirty (30) days’ prior written notice thereof. Tenant, at least ten (10) days
prior to the Commencement Date, and thereafter (for renewals of existing
policies) at least ten (10) days prior to the date of expiration of any existing
policy, shall deliver to Landlord a duplicate original insurance policy, an
insurance binder (countersigned by the insurer), or Evidence of Insurance (in
form ACORD 28) for each insurance policy required to be carried by Tenant
hereunder. Landlord agrees to maintain in full force and effect, during the Term
of this Lease, property damage insurance on the Building and commercial general
liability insurance, in such form and having such limits as are reasonably
determined by Landlord.

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     (b) Tenant shall
not violate, or suffer any violation of, any Insurance Requirements or any terms
or conditions imposed by any insurance policy then issued in respect of the Real
Property. Each party agrees to have included in each of its “all risk” insurance
policies (insuring the Base Building in case of Landlord, and insuring Tenant’s
Improvements and Tenant’s Property in the case of Tenant) a waiver of the
insurer’s right of subrogation against the other party during the Term. Each
party hereby releases the other party, with respect to any claim (including a
claim for negligence) which it might otherwise have against the other party, for
loss, damage or destruction with respect to its property occurring during the
Term, if, and to the extent, such loss, damage or destruction is, or under this
Article 19 is required to be, insured under a policy or policies containing a
waiver of subrogation.

20.
LIABILITY.

     (a) Each of the
parties hereto hereby releases the other, to the extent of the releasing party’s
insurance coverage, from any and all liability for any loss or damage covered by
such insurance which may be inflicted upon the property of such party even if
such loss or damage shall be brought about by the fault or negligence of the
other party, its agents or employees; provided, however, that this release shall
be effective only with respect to loss or damage occurring during such time as
the appropriate policy of insurance shall contain a clause to the effect that
this release shall not affect the policy or the right of the insured to recover
thereunder. If any policy does not permit such a waiver, and if the party to
benefit therefrom requests that such a waiver be obtained, the other party
agrees to obtain an endorsement to its insurance policies permitting such waiver
of subrogation if it is available; provided that if an additional premium is
charged for such waiver, the party benefiting therefrom agrees to pay the amount
of such additional premium promptly upon being billed
therefor.

     (b) Without
limiting the foregoing, Landlord, its agents and employees shall not be liable
to Tenant, and Tenant hereby releases Landlord, its agents and employees, for
any loss of life, personal injury or damage to property in the Demised Premises
from any cause whatsoever unless such loss, injury or damage is the result of
the negligence or willful misconduct of Landlord, its agents or employees or a
material breach of Landlord’s obligations hereunder. Notwithstanding anything to
the contrary set forth in this Lease, Landlord, its agents and employees shall
in no event be liable to Tenant, and Tenant hereby releases Landlord, its agents
and employees, for any loss or damage to property, whether or not the result of
the negligence or willful misconduct of Landlord, its agents or employees, to
the extent that Tenant would be covered by insurance that Tenant is required to
carry hereunder or is covered by insurance regardless of the insurance
requirements set forth herein, or to the extent of insurance customarily
maintained by similarly situated tenants for the risk in question (even if
Tenant failed to maintain such insurance). Tenant shall and does hereby
indemnify and hold Landlord, its agents and employees harmless from and against
any and all claims, actions, damages, liability and expenses (including
reasonable attorneys fees) in connection with any loss of life, personal injury
or damage to property in or about the Demised Premises or arising out of the
negligent use or occupancy of the Demised Premises by Tenant, its agents,
employees, invitees or contractors, or occasioned in whole or in part by Tenant,
its agents, employees, invitees or contractors, unless such loss, injury or
damage was caused by the negligence or willful misconduct of Landlord, its
agents or employees. Tenant’s covenants, obligations and liabilities under this
Section shall survive the expiration or earlier termination of this
Lease.

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     (c) Notwithstanding
anything to the contrary contained in this Lease, it is expressly understood and
agreed by Tenant that none of Landlord’s covenants, undertakings or agreements
are made or intended as personal covenants, undertakings or agreements by
Landlord or its partners, shareholders or trustees, or any of their respective
partners, members, shareholders or trustees, and any liability for damage or
breach or nonperformance by Landlord, its agents or employees or for the
negligence of Landlord, its agents or employees, shall be collectible only out
of Landlord’s interest in the Building and no personal liability is assumed by,
nor at any time may be asserted against, Landlord or its partners, members,
shareholders or trustees or any of its or their partners, members, shareholders,
trustees, officers, agents, employees, legal representatives, successors or
assigns, if any; all such liability, if any, being expressly waived and released
by Tenant. Notwithstanding anything to the contrary contained in this Lease, in
no event shall either party be liable to the other for any consequential
damages, lost profits, loss of business or other similar damages, regardless of
whether the same arises out of the negligence of either party, its agents or
employees; provided however, that, notwithstanding anything contained herein to
the contrary, Tenant shall be liable to Landlord for all damages, losses, costs
and expenses (including reasonable attorney’s fees and expenses) including,
without limitation, consequential damages suffered or incurred by Landlord as a
result of Tenant’s holdover after the expiration or earlier termination of the
Term of this Lease. Landlord acknowledges that none of Tenant’s covenants,
undertakings, or agreements are intended as personal covenants, undertakings or
agreements of Tenant’s partners, shareholders, directors, officers, trustees, or
employees, or any of their respective partners, shareholders, directors,
officers, trustees or employees.

21. ENVIRONMENTAL
MATTERS.

     (a) Tenant shall
conduct, and cause to be conducted, all operations and activity by Tenant at the
Demised Premises in compliance with, and shall in all other respects applicable
to the Demised Premises comply with, all applicable present and future federal,
state, municipal and other governmental statutes, ordinances, regulations,
orders, directives and other requirements, and all present and future
requirements of common law, concerning the environment (hereinafter collectively
called “Environmental Statutes”) including, without limitation, (i) those relating to the
generation, use, handling, treatment, storage, transportation, release,
emission, disposal, remediation, presence or other regulation of any material,
substance, liquid, effluent or product, including, without limitation, hazardous
substances, hazardous waste or hazardous materials, (ii) those concerning
conditions at, below or above the surface of the ground and (iii) those
concerning conditions in, at or outside the Building.

     (b) Tenant, its
agents, employees, contractors and invitees shall not cause or suffer or permit
to occur in, on or under the Demised Premises any generation, use,
manufacturing, refining, transportation, emission, release, treatment, storage,
disposal, presence or handling of hazardous substances (including without
limitation asbestos and petroleum products), hazardous wastes or hazardous
materials (as such terms are now or hereafter defined under any Environmental
Statutes) or any other material, substance, liquid, effluent or product now or
hereafter regulated by any Environmental Statutes (all of the foregoing herein
collectively called “Hazardous Substances”),
except that construction materials (other than asbestos or polychlorinated
biphenyls), office equipment and cleaning solutions, and other maintenance
materials that are or contain Hazardous Substances may be used, generated,
handled or stored on the Demised Premises, provided such is incident to and
reasonably necessary for the operation and maintenance of the Demised Premises
for the Permitted Use and is in compliance with all Environmental Statutes and
all other applicable governmental requirements. Should Tenant, its agents,
employees, contractors or invitees cause any release of Hazardous Substances at
the Demised Premises, Tenant shall immediately notify Landlord in writing and
immediately contain, remove and dispose of, such Hazardous Substances and any
material that was contaminated by the release and to remedy and mitigate all
threats to human health or the environment relating to such release. When
conducting any such measures the Tenant shall comply with all Environmental
Statutes.

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     (c) Tenant shall
indemnify, defend and hold harmless Landlord, its mortgagee, any ground or
underlying lessor and its or their agents and employees, from and against actual
damages suffered by Landlord as a result of claims, demands, liabilities, costs,
expenses, penalties, damages and losses including reasonable attorney's fees
(but not including consequential damages), which may be imposed upon, incurred
by or asserted or awarded against Tenant arising out of, on account of or by
reason of Tenant’s breach of any of the provisions of this
Article.

     (d) Tenant’s
covenants, obligations and liabilities under this Article shall survive the
expiration or earlier termination of this Lease.

     (e) Landlord has
advised Tenant of the following pre-existing environmental conditions (the
“Pre-Existing Environmental Conditions”), which, to the actual knowledge of
Landlord, are the only pre-existing environmental conditions at the Property and
Tenant acknowledges that it is aware of such Pre-Existing Environmental
Conditions:

          (i)
The Property was owned and occupied by American Standard, Inc. (“American
Standard”) between 1933 and 2001. During that period, American Standard utilized
the Property to manufacture vitreous plumbing fixtures from clay, plaster of
Paris and glazes. American Standard also used an adjoining parcel that was then
owned by American Standard (“Parcel B”) for disposal of ceramic pottery
(off-specification product and damaged pieces), pottery molds, incidental raw
materials and limited amounts of concrete, wood and metal. Beginning in 1988, in
anticipation of cessation of manufacturing activities, American Standard
investigated environmental conditions at the Property, as well as Parcel B, as
required by the New Jersey Environmental Cleanup Responsibility Act (“ECRA”),
which has since been amended and renamed the Industrial Site Recovery Act
(“ISRA”). As required by ECRA and ISRA, American Standard conducted these
investigations under the jurisdiction and oversight of the New Jersey Department
of Environmental Protection (“NJDEP”).

          (ii)
Sampling and analysis of the discarded pottery materials indicated that a
relatively small portion of the discarded materials contained certain metals at
concentrations exceeding regulatory thresholds for the identification of
hazardous wastes under Environmental Statutes. At the direction of NJDEP,
American Standard consolidated these materials into an area of approximately
1.74 acres on the western portion of the Property, not underlying the Building.
This area has been designated by NJDEP as AOC 1. American Standard compacted the
material that was placed in AOC 1, and installed a clay cap and groundwater
monitoring wells. American Standard maintains responsibility for AOC 1 pursuant
to a Memorandum of Agreement between American Standard and NJDEP. AOC 1 is also
governed by a Deed Notice, which Deed Notice is filed with the Mercer County
Clerk’s Office. Deed Notices are required by NJDEP for cleanup actions that
include leaving soil in place that contains any Hazardous Substances at
concentrations above applicable NJDEP cleanup standards. The Deed Notice
reflects NJDEP’s requirement that the soil in AOC 1 may not be disturbed without
NJDEP’s permission and that American Standard is responsible for maintenance of
AOC 1.

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          (iii)
Additional environmental evaluation of the Property was carried out by Preferred
Real Estate Investments (“Preferred”) prior to its acquisition of the Property
in 2004. Preferred then entered into a Memorandum of Agreement with NJDEP, under
which Preferred agreed to consolidate soils that contain discarded pottery
materials in certain designated areas of the Property. The discarded pottery
materials contain certain metals at concentrations exceeding cleanup standards
for commercial property established by NJDEP (but below concentrations at which
such materials would be regulated as hazardous waste). The method of remedial
action selected by Preferred and approved by NJDEP includes the placement of a
geotextile liner over the soils, with clean fill placed over the geotextile
liner. To the best of Landlord’s knowledge, this remedial action is in progress.
Landlord has been advised by Preferred and NJDEP that, once the remedial action
has been completed to the satisfaction of NJDEP, NJDEP will issue a No Further
Action determination, subject to the filing of appropriate Deed Notices.
Landlord has been further advised by Preferred and NJDEP that the Deed Notices
will reflect NJDEP’s requirement that the areas of the Property governed by the
Deed Notices may not be disturbed without NJDEP’s permission and that Landlord
will be responsible for maintenance of those areas. The Deed Notices are
required to be filed with the Mercer County Clerk’s Office. None of the areas of
the Property governed by the Deed Notices will be underneath the
Building.

          (iv)
In March 2006, NJDEP determined that recycled concrete aggregate that had been
used on the unpaved section of Metro Boulevard located on the Property as well
as on Parcel B had originated at a facility formerly owned by Ford Motor Company
(“Ford”) in Edison, New Jersey. NJDEP further determined that the recycled
concrete aggregate contained polychlorinated biphenyls (“PCBs”). NJDEP issued an
Administrative Order to Ford as well as to Edgewood Properties, Inc.
(“Edgewood”), the current owner of Parcel B, requiring removal and proper
off-site disposal of the recycled concrete aggregate. Landlord has been advised
that Edgewood has completed removal of the recycled concrete aggregate and has
submitted a report to NJDEP. Landlord has been further advised that Edgewood is
awaiting approval of the report and issuance of a No Further Action
determination by NJDEP. To the best of Landlord’s knowledge, none of the
recycled concrete aggregate remains on the Property.

     (f) Landlord shall indemnify, defend
and hold harmless Tenant from and against actual damages suffered by Tenant
during the Term of this Lease as a result of claims, demands, liabilities,
costs, expenses, penalties, damages and losses including reasonable attorney's
fees (but not including consequential damages), which may be imposed upon,
incurred by or asserted or awarded against Tenant arising out of or on account
of any Pre-Existing Environmental Conditions.

32

     (g) In the event Landlord shall
decide to carry environmental insurance, Tenant shall be liable for, and pay to
Landlord as Additional Rent, Tenant’s Share of the annual premium therefor,
within fifteen days of Tenant’s receipt of a statement for such annual premium
from Landlord. Landlord’s statement therefor shall be prorated for any part year
during the coverage period of such insurance. In no event shall Tenant pay in
excess of seven hundred fifty ($750.00) Dollars toward such premium during any
one Lease Year. 

22.
SUBORDINATION. This Lease is and shall be subject and subordinate to all of
the terms and conditions of all underlying mortgages and to all ground or
underlying leases of the Property which may now or hereafter encumber the
Building and/or the Property, and to all renewals, modifications,
consolidations, replacements and extensions thereof. This clause shall be
self-operative and no further instrument of subordination shall be necessary.
Notwithstanding the automatic subordination of this Lease, Tenant shall execute,
within five (5) business days after request, any certificate that Landlord may
reasonably require acknowledging such subordination. If Landlord has attached to
this Lease, or subsequently delivers to Tenant, a form of subordination
agreement required by a mortgagee of the Property, Tenant shall execute and
return the same to Landlord within five (5) business days after receipt thereof
by Tenant. Landlord shall obtain nondisturbance agreements for the benefit of
Tenant from ground lessor 240 Princeton Urban Renewal, L.L.C. and from ground
sublessor 240 Princeton Subtenant, L.P., on such lessor’s standard form, not
later than sixty (60) days after the date of this Lease. Landlord shall use
commercially reasonable efforts to obtain nondisturbance agreements from all
current or future mortgagees, ground or underlying lessor of the Property on
such mortgagee’s or lessor’s standard form. Notwithstanding the foregoing, the
party holding the instrument to which this Lease is subordinate shall have the
right to recognize and preserve this Lease in the event of any foreclosure sale
or possessory action, and in such case this Lease shall continue in full force
and effect at the option of the party holding the superior lien (subject to the
limitations in Sections 20(c) and 32(c)), and Tenant shall attorn to such party
and shall execute, acknowledge and deliver any instrument that has for its
purpose and effect the confirmation of such attornment.

23. ESTOPPEL
STATEMENT. Either party shall from time to time, within five (5) business
days after request from the other party, execute, acknowledge and deliver to the
requesting party a statement certified to the requesting party and, as
applicable, to any prospective mortgagee and purchaser, certifying that this
Lease is unmodified and in full force and effect (or that the same is in full
force and effect as modified, listing any instruments or modifications), the
dates to which Rent and other charges have been paid, and whether or not, to the
best of the certifying party’s knowledge, the requesting party is in Default or
whether the certifying party has any claims or demands against the requesting
party (and, if so, the default, claim and/or demand shall be specified), and
such other information reasonably requested by the requesting party and such
prospective mortgagee and/or purchaser, as the case may be.

24. RESERVATION OF
LANDLORD’S RIGHTS. Notwithstanding anything to the contrary contained
herein, Landlord explicitly reserves, without limitation, the following rights,
each of which Landlord may exercise without liability to Tenant, and the
exercise of any such rights shall not be deemed to constitute an eviction or
disturbance of Tenant’s use or possession of the Demised Premises and shall not
give rise to any claim for setoff or abatement of Rent or any other claim or
otherwise affect any of Tenant’s obligations hereunder:

33

     (a) to decorate or
make repairs, alterations, additions or improvements, whether structural or
otherwise, in and about the Property, including the Building and the Common
Areas, and/or to discontinue the availability of any Common Areas or to
substitute different Common Areas (provided that Landlord shall maintain such
Common Areas as are necessary to provide reasonable access and use of the
Demised Premises, and provided further that, during the continuance of any work
by Landlord, Landlord may temporarily close doors, entrance ways, corridors or
any other public areas of the Building, or temporarily suspend services or the
use of facilities or the Common Areas, so long as Landlord endeavors to minimize
any undue disruption to Tenant’s access);

     (b) to regulate
delivery of supplies and the usage of common loading docks, receiving areas and
freight elevators, if any;

     (c) to enter the
Demised Premises at reasonable times and upon reasonable notice to inspect the
Demised Premises and to make repairs, alterations or improvements to the Demised
Premises or other portions of the Building, including other tenants’ premises,
provided that Landlord shall use reasonable efforts to avoid material
interference to the conduct of Tenant’s business operations
therein;

     (d) to erect, use
and maintain pipes, ducts, wiring and conduits, and appurtenances thereto, in
and through the Demised Premises in reasonable locations, provided that Landlord
shall use reasonable efforts to avoid material interference to the conduct of
Tenant’s business operations therein;

     (e) to exclusively
utilize the roofs, telephone, electrical and janitorial closets, equipment
rooms, building risers and similar areas that are used by Landlord for the
provision of Building services; and

     (f) with reasonable
notice to Tenant, to show the Demised Premises to prospective mortgagees and
purchasers and, during the six (6) months prior to expiration of the Term, to
prospective tenants.

25. EXPIRATION
OF TERM; HOLDING-OVER. Upon or prior to the expiration
or earlier termination of this Lease, Tenant shall remove Tenant’s goods and
effects and those of any other person claiming under Tenant, and quit and
deliver up the Demised Premises to Landlord peaceably and quietly in as good
order and condition as existed at the inception of the Term, reasonable use and
wear thereof, damage from fire and extended coverage type risks, and repairs
which are Landlord’s obligation excepted. Goods and effects not removed by
Tenant at the termination of this Lease, however terminated, shall be considered
abandoned and Landlord may dispose of and/or store the same as it deems
expedient, the cost thereof to be charged to Tenant. Should Tenant continue to
occupy the Demised Premises after the expiration of the Term, including any
renewal or renewals thereof, or after a forfeiture incurred, such tenancy shall
(without limitation of any of Landlord’s rights or remedies therefor) be one at
sufferance, and, at a minimum monthly Base Rent equal to two hundred percent
(200%) of the Base Rent payable for the last full month of the Term. No holdover
by Tenant or payment by Tenant after the expiration or earlier termination of
this Lease shall be construed to extend the Term or prevent Landlord from
immediate recovery of the Demised Premises by summary proceedings or otherwise.
In the event that Landlord is unable to deliver possession of the Demised
Premises to a new tenant or to perform improvements for a new tenant as a result
of any holdover by Tenant after receipt of Landlord’s notice to vacate, Tenant
shall be liable to Landlord for all damages, including, without limitation,
consequential damages, that Landlord suffers as a result of Tenant’s
holdover.

34

26. SECURITY
INTEREST. Deleted prior to execution.

27. FINANCIAL
STATEMENTS. Upon the request of any mortgagee,
prospective mortgagee or prospective purchaser of the Property, Tenant shall
provide to Landlord complete copies of Tenant’s latest public annual report and
most recent audited financial statement, together with such other information as
may be reasonably requested by such mortgagee and/or purchaser. Tenant
represents and warrants that its financial statements are
audited.

28. RENT, USE
AND OCCUPANCY TAX. If, during the Term, including any
renewal or extension thereof, any tax is imposed upon the privilege of renting
or occupying the Demised Premises, Tenant’s use of the Demised Premises, or upon
the amount of rentals collected therefor, Tenant will pay each month, as
Additional Rent, a sum equal to such tax or charge that is imposed for such
month, but nothing herein shall be taken to require Tenant to pay any income,
estate, inheritance or franchise tax imposed upon Landlord. Notwithstanding the
foregoing, in no event shall any such tax be passed through to Tenant if such
tax is in lieu of Landlord’s income tax.

29. QUIET
ENJOYMENT. Tenant, upon paying the Rent, and observing
and keeping all covenants, agreements and conditions of this Lease on its part
to be kept, shall quietly have and enjoy the Demised Premises during the term of
this Lease without hindrance or molestation by anyone claiming by or through
Landlord, subject, however, to the exceptions, reservations and conditions of
this Lease and of record.

30. NOTICES.
All notices required to be given hereunder shall be
sent by registered or certified mail, return receipt requested, or by Federal
Express or other overnight express delivery service or by hand delivery against
written receipt or signed proof of delivery, to the respective Notice Addresses
set forth in Section 1 (Fundamental Lease Provisions), and to such other person
and address as each party may from time to time designate in writing to the
other. Notices shall be deemed to have been received on the next business day
when sent by Federal Express or other overnight express delivery service, and
within two (2) business days when sent by registered or certified
mail.

31. Deleted Prior to Execution.

32.
MISCELLANEOUS.

     (a) Tenant
represents and warrants to Landlord that Tenant has dealt with no broker, agent
or other intermediary in connection with this Lease other than Landlord’s Broker
and Tenant’s Broker, if any, specified in Section 1 (Fundamental Lease
Provisions), and that insofar as Tenant knows, no other broker, agent or other
intermediary negotiated this Lease or introduced Tenant to Landlord or brought
the Building to Tenant’s attention for the lease of space therein. Tenant agrees
to indemnify, defend and hold Landlord and its partners, employees, agents,
their officers and partners, harmless from and against any claims made by any
broker, agent or other intermediary other than Landlord’s Broker or, if
applicable, Tenant’s Broker, with respect to a claim for broker’s commission or
fee or similar compensation brought by any person in connection with this Lease,
provided that Landlord has not in fact retained such broker, agent or other
intermediary. Landlord agrees to pay all commissions payable to Landlord’s
Broker pursuant to a separate, written agreement between Landlord and Landlord’s
Broker. If any Tenant’s Broker is specified in Section 1 (Fundamental Lease
Provisions), Landlord’s Broker shall pay Tenant’s Broker a co-brokerage
commission pursuant to a separate, written agreement between Landlord’s Broker
and Tenant’s Broker. Landlord agrees to indemnify, defend and hold Tenant and
its partners, employees, agents, their officers and partners, harmless from and
against any claims made by Landlord’s Broker and Tenant’s
Broker.

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     (b) The term
“Tenant” as used in this
Lease shall be construed to mean tenants in all cases where there is more than
one tenant, and the necessary grammatical changes required to make the
provisions hereof apply to corporations, limited liability companies,
partnerships or individuals, men or women, shall in all cases be assumed as
though in each case fully expressed. This Lease shall not inure to the benefit
of any assignee, transferee or successor of Tenant except in accordance with the
provisions of Section 13 of this Lease. Subject to the foregoing limitation,
each provision hereof shall extend to and shall, as the case may require, bind
and inure to the benefit of Tenant, its successors and
assigns.

     (c) The term
“Landlord” as used in
this Lease means the fee owner of the Building or, if different, the party
holding and exercising the right, as against all others (except space tenants of
the Building) to possession of the entire Building. In the event of the
voluntary or involuntary transfer of such ownership or right to a
successor-in-interest of Landlord, Landlord shall be freed and relieved of all
liability and obligation hereunder which shall thereafter accrue (and, as to any
unapplied portion of Tenant’s security deposit, Landlord shall be relieved of
all liability therefor upon transfer of such portion to its successor in
interest) and Tenant shall look solely to such successor in interest for the
performance of the covenants and obligations of the Landlord hereunder (either
in terms of ownership or possessory rights). The successor in interest
(including without limitation any holder of a mortgage who shall succeed to
Landlord’s possessory or ownership interest) shall not (i) be liable for any
previous act or omission of a prior landlord; (ii) be subject to any rental
offsets or defenses against a prior landlord; (iii) be bound by any payment by
Tenant of Rent in advance in excess of one (1) month’s Rent; or (iv) be liable
for any security not actually received by it. Subject to the foregoing, and to
the provisions of Section 20(c), the provisions hereof shall be binding upon and
inure to the benefit of the successors and assigns of
Landlord.

     (d) If either
Landlord or Tenant institutes a suit against the other for violation of or to
enforce any covenant or condition of this Lease, the prevailing party shall be
entitled to all reasonable costs and expenses incurred by the prevailing party
in connection with such litigation, including, without limitation, reasonable
attorneys’ fees.

     (e) Time is of the essence of this
Lease and all of its provisions.

36

     (f) If Landlord or
Tenant is delayed or prevented from performing any of their respective
obligations under this Lease due to strikes, acts of God, shortages of labor or
materials, war, civil disturbances or other causes beyond the reasonable control
of the performing party (“Force
Majeure”), the period of such delay or prevention
shall be deemed added to the time herein provided for the performance of any
such obligation by the performing party. Notwithstanding the foregoing, events
of Force Majeure shall not extend any period of time for the payment of Rent or
other sums payable by either party or any period of time for the written
exercise of an option or right by either party.

     (g) Tenant shall
not record this Lease or a short form memorandum of this Lease without the prior
written consent of Landlord, and any such attempted recordation shall be void
and of no force or effect and shall constitute a Default hereunder; and Tenant
hereby appoints Landlord its attorney-in-fact to file any instrument to remove
or discharge from record any such recordation of the Lease or
memorandum.

     (h) Any rule of
construction to the effect that any ambiguities are to be resolved against the
drafting party shall not apply to the interpretation of this Lease or any
amendments or exhibits hereto.

     (i) This Lease, the
exhibits, and any riders attached or referenced hereto and forming a part hereof
set forth all of the promises, agreements, conditions, warranties,
representations, understandings and promises between Landlord and Tenant
relative to the Property, the Building, the Demised Premises and this leasehold
and Tenant expressly acknowledges that Landlord and Landlord’s agents have made
no representation, agreements, conditions, warranties, representations,
understandings or promises, either oral or written, other than as expressly
herein set forth, with respect to the Property, the Building, the Demised
Premises, this leasehold or otherwise. No alteration, amendment, modification,
waiver, understanding or addition to this Lease shall be binding upon Landlord
unless reduced to writing and signed by Landlord or by a duly authorized agent
of Landlord empowered by a written authority signed by Landlord. Tenant agrees
to execute any amendment to this Lease required by a mortgagee of the Building,
which amendment does not materially adversely affect Tenant’s rights or
obligation hereunder.

     (j) The captions of
the paragraphs in this Lease are inserted and included solely for convenience
and shall not be considered or given any effect in construing the provisions
hereof.

     (k) If any
provision contained in this Lease shall, to any extent, be invalid or
unenforceable, the remainder of this Lease (and the application of such
provision to the persons or circumstances, if any, other than those as to which
it is invalid or unenforceable) shall not be affected thereby, and each and
every provision of this Lease shall be valid and enforceable to the fullest
extent permitted by law.

     (l) This Lease
shall be governed by and construed in accordance with the laws of the State in
which the Property is located, without giving effect to the principles of
conflict of laws.

37

     (m) This Lease may
be executed in two or more counterparts, each of which shall be deemed to be an
original hereof, but all of which, taken together, shall constitute one and the
same instrument.

33. PARKING.
Landlord shall provide Tenant, throughout the Term,
with the nonexclusive use not less than four (4) parking spaces per 1,000
rentable square feet of the Demised Premises, which parking spaces shall be
located in the general parking area at the Property.

34. OPTION TO
RENEW.

     (a) Provided that
no uncured breach or default on the part of Tenant shall then exist under this
Lease and that this Lease shall then be in full force and effect, Tenant shall
have the option (the “Renewal Option”) to extend the Term of this Lease for one
(1) additional term of five (5) years (the “Renewal Term”). The Renewal Option
shall be exercisable only by Tenant giving by delivering written notice of the
exercise thereof (herein called the “Renewal Notice”) to Landlord received by
Landlord not later than the date that is nine (9) months prior, nor earlier than
the date that is twelve (12) months prior, to the expiration of the original
Term, TIME BEING OF THE ESSENCE. Tenant shall lease the Premises during the
Renewal Term in its then current condition, and Landlord shall have no
obligation to perform any work to the Premises, or to provide Tenant with any
allowances (e.g., moving allowance, construction allowance, and the like) or
other tenant inducements. The Renewal Term shall commence on the date
immediately succeeding the Expiration Date, and end on the fifth (5th)
anniversary of the Expiration Date (such anniversary being herein called the
“Renewal Expiration Date”). Landlord, at its option, may render the Renewal
Notice null and void upon notice thereof to Tenant if, at the time that Landlord
receives the same, Tenant shall be in uncured breach or default under this
Lease.

     (b) If Tenant
exercises the Renewal Option in accordance with the terms set forth above, then
this Lease shall thereupon be extended for the Renewal Term upon all the same
terms, covenants and conditions as are contained in this Lease and applicable
prior to the Renewal Term, except that for, and during, the Renewal Term: (1)
the Annual Base Rent shall be the Renewal Term Annual Base Rent (as hereinafter
defined) for the Renewal Term, as determined as hereinafter set forth; (2) the
Expiration Date shall be the Renewal Expiration Date; (3) any provisions of this
Lease setting forth (i) workletter or other work obligations of Landlord, (ii)
work allowances or contributions to be made by Landlord or (iii) abatements of
Rent, shall not apply; (4) Tenant shall not have an option to renew the Term
during the Renewal Term pursuant to the provisions of this
Section.

     (c) The following
provisions shall apply for determining the Annual Base Rent for the Renewal
Term:

          (i) As used herein, the term “Renewal Term Annual Base Rent” for the
Renewal Term shall mean a fixed rent payable at a per annum rate equal to the
greater of (1) the Annual Base Rent payable during the Lease Year immediately
preceding the Renewal Term or (2) the product of (i) the ninety five percent
(95%) of the Renewal Fair Market Annual Base Rent for such Renewal Term,
multiplied by (ii) the number of rentable square feet in the
Premises.

38

          (ii) As used herein, the term “Renewal Fair Market Annual Base Rent”
for the Renewal Term shall mean the annual base rent, per rentable square foot
per annum, that a willing tenant would pay and a willing landlord would accept
for a hypothetical renewal lease of the Premises having a 5 year term
(commencing with the commencement of the Renewal Term), and providing for fixed
annual rent on a level payment basis throughout such term (i.e., no step-ups in
fixed rent), assuming: (x) that the Premises were being demised by such
hypothetical renewal lease in their “as is” condition as of the date that Tenant
exercised the Renewal Option; (y) that the terms of such hypothetical renewal
lease would (1) include a work allowance or contribution to be paid by such
willing landlord to such willing tenant in an amount equal to the amount, if
any, that Landlord in its Initial Renewal Rent Notice (as hereinafter defined)
has indicated it is willing to provide to Tenant (but Landlord shall not be
obligated to offer to provide any such work allowance or contribution), (2)
include a free rent period during which such willing tenant would not pay any
fixed rent having a duration equal to the free rent period, if any, that
Landlord in its Initial Renewal Rent Notice has indicated it is willing to
provide to Tenant (but Landlord shall not be obligated to offer to provide any
such free rent period), and (3) otherwise be the same terms and conditions as
are provided for in this Lease for the Renewal Term; and (z) that such willing
landlord would be paying a brokerage commission in respect of such hypothetical
renewal lease equal to the actual brokerage commission, if any, payable by
Landlord to Broker or any other broker to whom a commission may be owing in
connection with the Renewal Term. Provided that not later than the date that is
twelve (12) months prior, nor earlier than the date that is fifteen (15) months
prior, to the expiration of the original Term Tenant makes a written request to
Landlord for a proposed calculation of the Renewal Fair Market Annual Base Rent,
Landlord shall provide such proposed calculation to Tenant prior to the
expiration of Tenant’s time to exercise the Renewal Option.

          (iii) During the thirty (30) day period (the “Renewal Initial
Period”) following Tenant’s exercise of the Renewal Option (i.e., after
Landlord’s receipt of the Renewal Notice), Landlord and Tenant shall attempt to
agree upon the Renewal Term Annual Base Rent for the Renewal Term (including any
concessions to be provided in connection therewith), and prior to the expiration
of the Renewal Initial Period Landlord shall give Tenant written notice (the
“Initial Renewal Rent Notice”) containing Landlord’s determination of the
Renewal Term Annual Base Rent for the Renewal Term based upon Landlord’s
determination of the Renewal Fair Market Annual Base Rent (“Landlord’s Renewal
Rent Determination”). If Landlord and Tenant fail to agree upon the Renewal Term
Annual Base Rent for the Renewal Term within the Renewal Initial Period, then
Tenant may, by written notice (a “Renewal Appraisal Notice”) received by
Landlord before the expiration of fifteen (15) days after the expiration of the
Renewal Initial Period, elect to have the Renewal Term Annual Base Rent for the
Renewal Term determined by appraisal in accordance with the provisions set forth
on Exhibit “E” annexed hereto. If Landlord does not receive a Renewal Appraisal
Notice from Tenant before the expiration of such fifteen (15) day period, Tenant
and Landlord shall be conclusively deemed to have agreed to Landlord’s Renewal
Rent Determination, and the Renewal Term Annual Base Rent for the Renewal Term
shall equal Landlord’s Renewal Rent Determination.

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          (iv)
If, as of the first day of the Renewal Term, the Renewal Term Annual Base Rent
shall not have been finally determined, then (x) for the period from the
commencement of the Renewal Term until the date that the Renewal Term Annual
Base Rent is finally determined (herein called the “Renewal Pre-Determination
Period”), Tenant shall make payments, on account of the Renewal Term Annual Base Rent for the Renewal
Term (as and when Annual Base Rent is payable under this Lease), in an amount
equal to the Annual Base Rent in effect immediately prior to the commencement of
the Renewal Term, and (y) if, upon the final determination of the Renewal Term
Annual Base Rent for the Renewal Term, the payments made by Tenant on account of
the Renewal Term Annual Base Rent for the Renewal Term during the Renewal
Pre-Determination Period were less than the Renewal Term Annual Base Rent for
the Renewal Term, then Tenant shall pay to Landlord the amount of such
deficiency, together with interest thereon at the Base Rate, within twenty (20)
days after demand therefor.

          (v)
Tenant’s right to renew this Lease shall automatically terminate if this Lease
or Tenant’s right to possession of the Premises is terminated. Tenant shall have
no further right to extend the Term following the expiration of the Renewal
Term. Except as set forth in this Section 34, the Lease and all the covenants,
agreements, terms, provisions and conditions thereof shall remain in effect
during the Renewal Term.

          (vi)
Tenant shall, upon the request of Landlord, execute, acknowledge and deliver to
Landlord an instrument or instruments in form reasonably satisfactory to
Landlord confirming any terms and conditions of this Lease applicable to the
Renewal Option or the Renewal Term, including without limitation whether or not
the Renewal Option has been exercised and the Renewal Term Annual Base Rent for
the Renewal Term, but any failure of Tenant to execute, acknowledge and deliver
such instrument(s) shall not affect the validity of the Renewal Term or any of
the provisions of this Section 34.

35. INTENTIONALLY
DELETED.

36. OFAC.
Tenant represents, warrants and covenants that neither
Tenant nor any of its partners, officers, directors, members or shareholders (i)
is listed on the Specially Designated Nationals and Blocked Persons List
maintained by the Office of Foreign Asset Control, Department of the Treasury
(“OFAC”) pursuant to Executive Order No. 13224, 66 Fed. Reg. 49079 (Sept. 25,
2001) (“Order”) and all applicable provisions of Title III of the USA Patriot
Act (Public Law No. 107-56 (October 26, 2001)); (ii) is listed on the Denied
Persons List and Entity List maintained by the United States Department of
Commerce; (iii) is listed on the List of Terrorists and List of Disbarred
Parties maintained by the United States Department of State, (iv) is listed on
any list or qualification of “Designated Nationals” as defined in the Cuban
Assets Control Regulations 31 C.F.R. Part 515; (v) is listed on any other
publicly available list of terrorists, terrorist organizations or narcotics
traffickers maintained by the United States Department of State, the United
States Department of Commerce or any other governmental authority or pursuant to
the Order, the rules and regulations of OFAC (including, without limitation, the
Trading with the Enemy Act, 50 U.S.C. App. 1-44; the International Emergency
Economic Powers Act, 50 U.S.C. §§ 1701-06; the unrepealed provision of the Iraqi
Sanctions Act, Publ.L. No. 101-513; the United Nations Participation Act, 22
U.S.C. § 2349 aa-9; The Cuban Democracy Act, 22 U.S.C. §§ 60-01-10; The Cuban
Liberty and Democratic Solidarity Act, 18.U.S.C. §§ 2332d and 233; and The
Foreign Narcotic Kingpin Designation Act, Publ. L. No. 106-201, all as may be
amended from time to time); or any other applicable requirements contained in
any enabling legislation or other Executive Orders in respect of the Order (the
Order and such other rules, regulations, legislation or orders are collectively
called the “Orders”); (vi) is engaged in activities prohibited in the Orders; or
(vii) has been convicted, pleaded nolo contendere, indicted, arraigned or
custodially detained on charges involving money laundering or predicate crimes
to money laundering, drug trafficking, terrorist-related activities or other
money laundering predicate crimes or in connection with the Bank Secrecy Act (31
U.S.C. §§ 5311 et. seq.). Tenant shall not permit the Premises or any portion
thereof to be used, occupied or operated by or for the benefit of any person or
entity that is on the OFAC List. Tenant shall indemnify and hold Landlord
harmless and against from all losses, damages, liabilities, cost and expenses
(including, without limitation, reasonable attorneys’ fees and expenses) that
are incurred by Landlord and/or its affiliates that derive from a claim made by
a third party against Landlord and/or its affiliates arising or alleged to arise
from a misrepresentation made by Tenant in this Section 36 or a breach of any
covenant to be performed by Tenant pursuant to this Section
36.

40

37. COMPLIANCE
WITH LAWS. Subject to Section 7(b)(10) of this Lease,
Tenant, at its expense, shall (i) comply with all Legal Requirements requiring
compliance in respect of the Premises or the use and occupancy thereof, and (ii)
be responsible for the cost of any other compliance with Legal Requirements in
respect of the Building and Land which arises from Tenant’s use and occupancy of
the Premises; provided, however, that Tenant shall not be required to perform,
or be responsible for the cost of, any alterations to the Building which are
required to be performed to comply with any Legal Requirements, unless the need
for such compliance arises by reason of (w) the manner of conduct of Tenant’s
business in the Premises, (x) the performance of any Alterations or the
operation, use or presence of any Tenant’s Improvements or Tenant’s Property,
(y) any condition created by or at the instance of Tenant, or (z) the breach of
any of Tenant’s obligations hereunder.

38.
AFFIRMATIVE WAIVER. Landlord and Tenant each hereby
waives trial by jury in any action, proceeding or counterclaim brought by either
against the other on any matter whatsoever arising out of or in any way
connected with this Lease. Tenant shall not interpose any counterclaim of any
kind, except for mandatory or compulsory counterclaims in any actions or
proceeding commenced by Landlord, of any kind, to recover possession of the
Premises. Tenant hereby waives any right of redemption or similar right that it
may have with respect to this Lease or the Premises after the expiration or
earlier termination of the Term of this Lease.

39. NO
REPRESENTATIONS. Tenant expressly acknowledges and
agrees that Landlord has not made and is not making, and Tenant in executing and
delivering this Lease is not relying upon, any warranties, representations,
promises or statements of Landlord, any agent or representative of Landlord or
any third-party, except to the extent that the same are expressly set forth in
this Lease.

40. OFFERED
SPACE OPTION. (a) If at any time during the term of
this Lease but prior to the last twenty-four (24) months of the Term (as the
same may be extended) Landlord proposes to lease any portion of the rentable
area of the first (1st) floor of the Building which is not
subject to this Lease and which is contiguous with and adjacent to the Demised
Premises (the “Offered Space”) and Landlord anticipates that such space shall
become Available (as hereinafter defined), except in the case of an Accelerated
Offered Space Notice (as hereinafter defined), Landlord shall deliver notice
thereof to Tenant (an “Offered Space Notice”), which Offered Space Notice shall
set forth the Offered Space in question, Landlord’s determination of the Offered
Space Fair Market Value (as hereinafter defined) for such Offered Space, the
rentable square footage of such Offered Space, Tenant’s Share in respect of such
Offered Space and the date Landlord anticipates that such Offered Space will
become available for leasing. Provided that all of the conditions precedent set
forth in this Article 40 are fully satisfied by Tenant, Tenant shall, subject to
paragraph (c), have a one-time option (an “Offered Space Option”), exercisable
by Tenant delivering irrevocable notice to Landlord (an “Acceptance Notice”), to
lease all (but not less than all) of such Offered Space, upon the terms and
conditions set forth in this Article 40, within twenty (20) days of the giving
by Landlord of such Offered Space Notice and this Lease shall thereupon be
modified as provided in paragraph (g) hereof.

41

     (b) Time shall be of the essence as
to Tenant’s giving of any Acceptance Notice. If Tenant fails to timely give any
Acceptance Notice, Landlord shall have no further obligation to Tenant (except
as hereinafter set forth), and Tenant shall have no further rights, with respect
to the Offered Space in question, and Landlord shall be free to lease such
Offered Space in one or more transactions to any third party or to otherwise
dispose of such Offered Space, subject to paragraph (c), below.

     (c) In the event that Tenant has not
sent the Acceptance Notice in respect of any Offered Space, and thereafter
Landlord proposes to lease such Offered Space to a third party upon economic
terms which result in a “net effective rent” (e.g., rental, free rent,
construction, construction allowance, and escalation), discounted to present
value at the rate customarily used by Landlord for discounting, which is less
than 90%, adjusted, as reasonably determined by Landlord, to appropriately
account for any difference between the Term and the term of the proposed lease,
of the terms set forth in the Offered Space Notice (“Third Party Terms”), then
Landlord shall be obligated to re-offer such Offered Space to Tenant on the
Third Party Terms, except that Tenant’s time within which to send an Acceptance
Notice shall be five (5) business days. If Landlord shall fail to enter into a
lease with respect to any Offered Space within two hundred seventy (270) days
after offering such Offered Space to Tenant (which two hundred seventy (270) day
period shall be subject to automatic extension in the event Landlord is
negotiating a lease with a third party prior to the expiration of such two
hundred seventy (270) day period for so long as such negotiations are active),
Landlord shall be obligated to re-offer such Offered Space to Tenant in
accordance with the provisions of paragraph (a) prior to Landlord entering into
a lease with a third party with respect to such Offered Space.

     (d) “Available” shall mean for the
purposes of this Article that at the time in question (i) no person or entity
leases or occupies the Offered Space in question or any portion thereof, whether
pursuant to a lease or other agreement, and (ii) no person or entity holds any
option or right to lease or occupy such Offered Space or to renew its lease or
right of occupancy thereof, provided, however, that with respect to clause (ii)
of paragraph (d), Landlord agrees from the date hereof not to grant any
expansion (except as set forth below) or offer rights to any persons with
respect to any of the Offered Space unless any such grant is subject and
subordinate to the rights of Tenant hereunder. Landlord shall be free to extend
the current tenant’s (solely for the current tenant’s then current space),
pursuant to such tenant’s existing right contained in its lease in respect of
renewal but not in respect of any expansion and such space shall not be deemed
to be Available. Landlord shall also be free to grant to any future tenants of
the Building fixed expansion rights (not rights of first offer, unless subject
and subordinate to any rights of Tenant hereunder, but “must take” obligations
or a direct lease of such space, i.e., notwithstanding any provision of this
Article to the contrary, Landlord is free to directly lease any of the Offered
Space to any third party at any time during the Term, provided such leasing is
not pursuant to a right of first offer) and renewal rights to such Offered
Space.

42

     (e) “Offered Space Fair Market
Value” shall mean the fair market annual rental value of the Offered Space in
question as determined by Landlord at the commencement of the leasing of such
Offered Space for a term commencing on the Offered Space Commencement Date (as
hereinafter defined) applicable to such Offered Space and ending on the
Expiration Date, based on comparable space in the Building and based on
comparable space in comparable Buildings, including all of Landlord’s services
provided for in this Lease, and with (i) such Offered Space considered as vacant
and in the “as is” condition which same shall be in on such Offered Space
Commencement Date, (ii) the Base Tax Year being the Tax Year commencing on the
January 1 of the calendar year in which such Offered Space Commencement Date
occurs, and (iii) the Base Operating Year being the calendar year commencing on
the January 1 of the calendar year in which such Offered Space Commencement Date
occurs.

     (f) Tenant shall have no right to
exercise any Offered Space Option unless all of the following conditions have
been satisfied on the date the applicable Acceptance Notice is delivered to
Landlord and on the applicable Offered Space Commencement Date:

          (i) No
Event of Default shall have occurred and then be continuing
hereunder;

          (ii)
The Tenant named herein (i.e., Voxware, Inc. or a Permitted Transferee) shall be
in occupancy of at least 80% of the rentable square feet of the then Premises;
and

          (iii)
There shall not have occurred any material adverse change in the financial
condition of Tenant from the condition described on the financial statements
submitted by Tenant to Landlord in connection with this Lease.

     (g) Effective as of the date on
which Landlord delivers vacant possession of the Offered Space in question to
Tenant (an “Offered Space Commencement Date”) through and including the
Expiration Date:

          (i)
Annual Base Rent for such Offered Space shall be the Offered Space Fair Market
Value applicable thereto as determined in accordance with this Article
40;

          (ii)
Tenant shall make additional payments on account of Taxes and Operating Expenses
with respect to such Offered Space in accordance with Article 7 and 7A of this
Lease, except that (x) the Base Tax Year shall be the Tax Year commencing on the
January 1 of the calendar year in which such Offered Space Commencement Date
occurs and (y) the Base Operating Year shall be the calendar year commencing on
the January 1 of the calendar year in which such Offered Space Commencement Date
occurs;

          (iii)
The rentable square footage of the Offered Space shall be as set forth in the
applicable Offered Space Notice (which the parties agree shall be the rentable
square footage of such Offered Space for all purposes of this Lease) and
Tenant’s Proportionate Share shall be appropriately adjusted;

43

          (iv)
Such Offered Space shall be delivered in its “as is” condition, and Landlord
shall not be obligated to perform any work with respect thereto or make any
contribution to Tenant to prepare such Offered Space for Tenant’s
occupancy;

          (v)
Such Offered Space shall be added to and be deemed to be a part of the Premises
for the term applicable thereto in the Offered Space Notice for all purposes of
this Lease (except as otherwise provided in this Article 40);

          (vi)
Landlord shall provide electricity to such Offered Space pursuant to the terms
and conditions of Article 8 of this Lease; and Landlord shall install submeters
in such Offered Space (if not already existing), at Tenant’s expense, to measure
Tenant’s consumption of electricity in such Offered Space;

          (vii)
The expiration date of such Offered Space shall be the Expiration Date and the
Term of such Offered Space shall be the period commencing on the Offered Space
Commencement Date and ending on the Expiration Date, both dates inclusive;
and

          (viii)
If Tenant shall not lease the entirety of a floor of the Building upon the
exercise of an Offered Space Option and if Tenant shall thereafter lease the
remainder of such floor hereunder, the Premises shall, from and after Tenant’s
leasing of the remainder of such floor, include the common corridors and
lavatories on such floor.

     (h) In no event shall Landlord be
obligated to incur any fee, cost, expense or obligation, nor to prosecute any
legal action or proceeding, in connection with the delivery of any Offered Space
to Tenant nor shall Tenant’s obligations under this Lease with respect to the
Premises or the Offered Space be affected thereby. Landlord shall not be subject
to any liability and this Lease shall not be impaired if Landlord shall be
unable to deliver possession of any Offered Space to Tenant on any particular
date, provided, however, that Landlord shall use commercially reasonable efforts
to cause the existing tenant or occupant of the Offered Space to vacate the same
on or before ninety (90) days after anticipated Offered Space Commencement Date
as set forth in the Offered Space Notice (including the initiation and
prosecution of a holdover proceeding if such tenant or occupant holds over
beyond such 90-day period or sooner at the beginning of such 90-day period or at
any time during such 90-day period if Landlord does not believe in good faith
that such tenant or occupant intends to vacate the Offered Space within such 90
day period). If Landlord fails to deliver vacant possession of any of the
Offered Space in accordance with the terms of this Lease prior to three hundred
sixty five (365) days after the expected delivery date set forth in the
applicable Offered Space Notice (the “Offered Space Outside Delivery Date”),
Tenant shall have the right within thirty (30) days after such Offered Space
Outside Delivery Date, as its sole and exclusive remedy therefor, to cancel this
Lease in respect of the Offered Space in question by giving notice of
cancellation to Landlord. If Tenant timely delivers the aforesaid cancellation
notice, this Lease in respect of the Offered Space in question shall terminate
(thirty) 30 days after the date of such notice, unless Landlord delivers vacant
possession of the Offered Space in question in the condition required by this
Lease within 30 days after Tenant gives such cancellation notice in respect of
the Offered Space in question, in which case Tenant’s cancellation notice shall
be void and this Lease in respect of the Offered Space in question shall
continue in full force and effect. Failure by Tenant to exercise such right to
cancel this Lease with respect to the Offered Space in question within such
30-day period shall constitute a waiver of such right; time being of the essence
with respect thereto.

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     (i) Upon request by Landlord made on
or following any Offered Space Commencement Date, Tenant will execute,
acknowledge and deliver to Landlord an amendment to this Lease setting forth
such Offered Space Commencement Date and Fixed Rent for the Offered Space in
question, and reflecting the incorporation of such Offered Space into the
Premises, and the modifications to this Lease resulting therefrom, as provided
in this Article 40. The failure of either party to execute and deliver such an
amendment shall not affect the rights of the parties under this
Lease.

     (j) In the event that the existing
lease for the Offered Space is terminated prior to the expiration date specified
therein as a result of the termination of such lease by mutual agreement (or
otherwise) by reason of the tenant’s financial condition or by reason of such
tenant’s default, then in any such case Landlord may elect to accelerate the
Offered Space Commencement Date to a date which may be within the first Lease
Year with respect to such Offered Space (or any portion thereof) by giving
immediate notice of such acceleration (an “Accelerated Offered Space Notice”) to
Tenant (without any obligation to comply with the notice provisions contained in
paragraph (a) of this Article), specifying the date upon which Landlord
anticipates that Landlord shall deliver such Offered Space to Tenant. In the
event of such acceleration, Tenant shall have fifteen (15) days after delivery
by Landlord of the acceleration notice within which to exercise its option to
lease such Offered Space (time being of the essence with respect to the giving
of the notice by Tenant).

41. AMERICANS
WITH DISABILITIES ACT. Tenant hereby represents that
it is not a public accommodation, as defined in the Americans With Disabilities
Act of 1990, as amended (the “ADA”). Tenant at its sole cost and expense shall
be solely responsible for taking any and all measures which are required to
comply with the requirements of Title I and/or Title III of the ADA within the
Premises and, if measures required outside of the Premises are attributable to
Tenant’s alterations to or particular use of the Premises, outside of the
Premises as well. Any Alterations to the Premises made by Tenant for the purpose
of complying with the ADA or which otherwise require compliance with the ADA
shall be done in accordance with this Lease; provided, however, that Landlord’s
consent to such Alterations shall not constitute either Landlord’s assumption,
in whole or in part, of Tenant’s representation or confirmation by Landlord that
such Alterations comply with the provisions of the ADA. Tenant shall indemnify
the Landlord for all claims, damages, judgments, penalties, fines,
administrative proceedings, costs, expenses and liability arising from Tenant’s
failure to comply with any of the requirements of Title I and/or Title III of
the ADA within the Premises. Landlord shall indemnify the Tenant for all claims,
damages, judgments, penalties, fines, administrative proceedings, cost, expenses
and liability arising from Landlord’s failure to comply with Title III of the
ADA within the public areas. Notwithstanding anything to the contrary set forth
herein, if (i) Landlord causes alterations or improvements to be made to the
public areas of the Building to comply with the ADA, and (ii) such alterations
or improvements solely benefit the Premises, Tenant shall reimburse Landlord for
all costs and expenses incurred by Landlord in connection with the performance
of such alterations or improvements.

45

42. TENANT’S
ALTERATIONS, IMPROVEMENTS AND PROPERTY. (a) Except as
otherwise provided herein, Tenant shall not make any Alterations (as defined
below) of any nature without Landlord’s prior written approval as hereinafter
provided. So long as Tenant complies with the provisions of this Article,
Landlord’s approval of proposed Alterations shall not be unreasonably withheld,
conditioned or delayed, unless the proposed Alterations are Material Alterations
(as hereinafter defined). As used herein, the following terms shall have the
following meanings: (I) “Alterations” shall mean any alterations made, or
proposed to be made, by Tenant in or to the Premises; and (II) “Material
Alterations” shall mean any Alterations which (a) affect the exterior (including
the appearance) of the Building or any other portion of the Building outside of
the Premises, (b) are structural or affect the structural elements of the
Building, or (c) affect the usage or the proper functioning of the Building
Systems or any part thereof. Tenant shall not be required to obtain Landlord’s
consent for Alterations, if such Alterations (i) are not Material Alterations,
do not require a construction or building permit, and cost (as an entire
Alterations project) less than Thirty Thousand and 00/100 Dollars ($30,000.00),
or (ii) are purely cosmetic or decorative (i.e., painting, wall coverings and/or
carpeting). Tenant shall request Landlord’s written approval of any Alterations
only by written notice to Landlord, which notice shall be accompanied, if
applicable, by two (2) sets of detailed plans and specifications setting forth
all such Alterations (such plans and specifications, with respect to any
Alterations, being herein called the “Additional Plans”). All Additional Plans
shall be prepared at Tenant’s expense by an architect licensed to practice in
the State of New Jersey. Landlord shall not unreasonably withhold, condition or
delay its approval of any proposed non-Material
Alterations.

     (b) Tenant, in connection with any
Alterations, shall (i) reimburse Landlord for all actual out-of-pocket costs
reasonably incurred by Landlord (including the reasonable fees of any outside
architect, engineer or other professional employed by Landlord) in connection
with any review of any Additional Plans or any other items submitted by Tenant
in connection therewith, and (ii) (A) in the event Tenant elects to have
Landlord’s designated construction manager for the Building (herein called
“Landlord’s Construction Manager”) provide construction management services with
respect to such Alterations, Tenant shall pay Landlord’s Construction Manager
fifteen percent (15%) of the aggregate cost of such Alterations as compensation
for such construction management services, or (B) in the event Tenant does not
elect to have Landlord’s Construction Manager provide construction management
services with respect to such Alterations, Tenant shall pay Landlord’s
Construction Manager a general supervision fee of five percent (5%) of the
aggregate cost of such Alterations as compensation for general oversight and
coordination by Landlord’s Construction Manager. Prior to commencing such
Alterations, Tenant (i) shall furnish Landlord with an estimate of the cost of
such Alterations (which estimate shall be subject to Landlord’s reasonable
review and approval), and (ii) shall pay to Landlord’s Construction Manager the
estimated amount of the construction management or general supervision fee
described in the preceding sentence. Tenant acknowledges that any review or
approval by Landlord of any Additional Plans with respect to any Alterations,
and/or any on-site inspections of any Alterations, and/or any supervision by
Landlord of Alterations, are solely for Landlord’s benefit, and without any
representation or warranty whatsoever to Tenant with respect to the adequacy,
correctness or efficiency of any such Additional Plans or Alterations, or the
compliance thereof with Legal Requirements, Insurance Requirements or the
provisions of this Lease, and Landlord shall have no liability or responsibility
therefor. Alterations shall be performed only by contractors that have been
first approved by Landlord in writing, which approval shall not be unreasonably
withheld, conditioned or delayed. Tenant shall cause all Alterations to be
diligently performed to completion in accordance with the Additional Plans
approved by Landlord, in compliance with Legal Requirements and Insurance
Requirements, and otherwise in a good and workmanlike manner (using materials at
least equal in quality and class to the then standards for the Building).

46

Tenant, at its
expense, shall obtain (and furnish true and complete copies to Landlord of) all
governmental permits and certificates required for the commencement and
prosecution of Alterations and for final approval thereof upon completion.
Alterations shall be performed in such manner as not to interfere with, or
impose any additional expense (except to the extent Tenant reimburses Landlord
therefor) upon, Landlord in the operation, management, maintenance and/or repair
of the Real Property. Throughout the performance of any Alterations, Tenant, at
its expense, shall carry, or cause to be carried, (i) workers’ compensation
insurance in statutory limits, and (ii) such general liability insurance and
other insurance as Landlord shall reasonably require (but not in excess of the
insurance Tenant may be required to carry under Article 19 hereof). Tenant,
promptly upon the completion of any Alterations, shall deliver to Landlord “as
built” drawings therefor, if applicable. Tenant, in connection with any
Alterations or any other work, shall comply with and observe, and shall cause
each of its contractors to comply with and observe, the rules and regulations
annexed hereto and made a part hereof as Exhibit “G”, and such reasonable
changes therein (whether by modification, elimination or addition) as Landlord
at any time or times hereafter may make and communicate to Tenant in writing
(such rules and regulations, as changed from time to time, being herein called
the “Alteration Rules and Regulations”); provided, however, that in case of any
conflict or inconsistency between the provisions of this Lease and any of the
Alteration Rules and Regulations, the provisions of this Lease shall
control.

     (c) For purposes of this Lease, the
following definitions shall apply:

     “Tenant’s Improvements” shall mean
all improvements, betterments, fixtures (inclusive of trade fixtures), equipment
and appurtenances attached to or built into the Premises by or on behalf of
Tenant (whether or not at Tenant’s expense) during the Term, including the
Initial Tenant Improvements and all Alterations (and including Tenant’s line,
riser and other connections to the Building Systems and any separate HVAC,
electrical or other mechanical system or facility installed by or on behalf of
Tenant), but excluding Tenant’s Property.

     “Tenant’s Property” shall mean all
office furniture and equipment, movable partitions, communications equipment and
other articles of movable personal property owned or leased by Tenant and
located in the Premises, including floor and/or wall coverings and all computer
and telephone cables installed by or on behalf of Tenant. For purposes of this
Lease, Tenant’s Entrance Sign shall be deemed Tenant’s
Property.

     (d) All Tenant’s Improvements, upon
the installation thereof, shall be and remain Landlord’s property and shall not
be removed by Tenant at anytime during the Term (except in connection with
permitted Alterations) or upon the expiration or earlier termination of this
Lease. Notwithstanding the foregoing, upon notice to Tenant given prior to the
Expiration Date for Alterations for which Landlord’s approval has not been
granted, Landlord may require Tenant, at Tenant’s expense, to remove all or any
portion of any Tenant’s Improvements prior to the expiration of this Lease (or
within thirty (30) days following the earlier termination hereof). In such
event, Tenant shall repair any damage to the Real Property (including the
Premises) resulting from any such removal and restore any affected areas
thereof, normal wear and tear, damage from fire or other casualty, eminent
domain or condemnation excepted.

47

     (e) All Tenant’s Property shall be
and shall remain the property of Tenant throughout the Term and may be removed
by Tenant at any time during the Term. Upon the expiration of this Lease (or
within thirty (30) days after the earlier termination hereof), Tenant, at its
expense, shall remove all Tenant’s Property from the Premises. Tenant shall
repair any damage to the Real Property (including the Premises) resulting from
any removal of Tenant’s Property and shall restore any affected areas of the
Real Property, normal wear and tear, damage from fire or other casualty, eminent
domain or condemnation excepted. Any items of Tenant’s Property which shall
remain in the Premises after the expiration of this Lease (or, as the case may
be, for more than thirty (30) days following an earlier termination of this
Lease), may, at the option of Landlord, be deemed to have been abandoned, and in
such case such items may be retained by Landlord as its property or disposed of
by Landlord, without accountability, in such manner as Landlord shall
determine.

     (f) All Alterations shall be fully
paid for by Tenant. No Tenant’s Improvements shall be subject to any conditional
bills of sale, chattel mortgage or other title retention agreements. Tenant, at
its expense, and with diligence and dispatch, shall procure the cancellation or
discharge of all notices of violation arising from, or otherwise connected with,
Alterations, or any other work, labor, services or materials done for or
supplied to Tenant, or any Tenant Party, which shall be issued by any
Governmental Authority. Tenant shall defend, indemnify and hold harmless
Landlord from and against any and all mechanic’s and other liens and
encumbrances filed in connection with Alterations, or any other work, labor,
services or materials done for or supplied to Tenant or any Tenant Party and
from and against all costs, expenses and liabilities incurred in connection with
any such lien or encumbrance or any action or proceeding brought thereon.
Tenant, at its expense, shall procure the satisfaction or discharge of record by
bonding, payment or otherwise, of all such liens and encumbrances within thirty
(30) days after knowledge or notice thereof.

43. DELIVERY FOR
EXAMINATION. DELIVERY OF THE LEASE TO EITHER PARTY SHALL NOT BIND EITHER PARTY
IN ANY MANNER, AND NO LEASE OR OBLIGATIONS OF EITHER PARTY SHALL ARISE UNTIL
THIS INSTRUMENT IS SIGNED BY BOTH LANDLORD-AND TENANT.

44. BEIP
TERMINATION RIGHT. Provided that Tenant shall make
prompt application for a Business Employment Incentive Program grant from the
New Jersey Economic Development Authority, and provided that Tenant shall, in
good faith, diligently prosecute such application, then Tenant shall have the
right to terminate this Lease, without penalty, by written notice to Landlord
given no later than 5:00 P.M. on January 15, 2008, time being of the essence
with respect to such date, in the event that Tenant’s Business Employment
Incentive Program grant request has not been given final approval by the New
Jersey Economic Development Authority on or before January 15,
2008.

[Signatures to
follow.]

48

     IN
WITNESS WHEREOF, the parties hereto have executed this Lease or caused this
Lease to be executed by their duly authorized representatives the day and year
first above written.

	Witness: 
      	LANDLORD:
	 
      
	 	240 PRINCETON TCI ASSOCIATES, LLC, 
	  	a New Jersey limited liability
      company 
	 
      
	 
      
	    /s/ Susan Lulla 	                  	By:		/s/
      Andrew Lichy
	  		 	Name: Andrew Lichy
	  			Title: 
	 
      
	 
      
	Witness: 
      	TENANT:
	 
      
	  	VOXWARE INC., a Delaware
      corporation 
	 
      
	 
      
	    /s/ Monika
      Laszkowski 	 	By:		/s/ Kenneth W. Riley 
	  			Name: Kenneth W. Riley 
	  			Title: Interim CFO

49 

EXHIBIT
“A”

DEMISED
PREMISES

A-1

EXHIBIT
“B”

SPACE
PLAN

B

EXHIBIT
“B-1”

CONSTRUCTION
STANDARDS

I.
PARTITIONS

     A. Provide fire/U.L. rated
partitions in accordance with applicable code requirements.

     B. Drywall and insulate perimeter
walls with 1/2” sheet rock on metal studs to underside of deck to meet USG
standards. Provide minimum R-11.

     C. Standard partitions to be 3-5/8”
25 GA metal studs at 16” a/c to underside of ceiling grid. Metal runner at floor
and ceiling. Typical at all locations unless otherwise noted.

     D. Secure sound partition to be
3-5/8 25GA metal studs at 16” o/c to underside of deck with 5/8” drywall and
sound attenuation bats. Location: Mechanical and electric rooms.

     E. Sound partition, same as standard
partition, with sound attenuation bats in wall and laid 2’-O” on each side of
wall typical location.

     F. All partitions to have
control/expansion joints as recommended by USG.

II. DOORS AND
HARDWARE

     A. Interior single doors to be 3’-0”
x 7’0” solid core birch doors with stain grade veneer. Doorframes to be painted
hollow metal with a minimum of 3 door silencers. Typical all interior single
door.

     B. Entrance doors to be pair of
3’-0” x 7’0” solid birch stain grade 6 lite doors with similar hardware as
office doors with surface mounted closer and deadbolt.

     C. Interior doors to receive full
mortise 5 knuckle hinges, wall-mounted doorstops and Schlage or approved equal
passage sets, unless otherwise noted.

     D. Storage rooms, computer rooms,
file rooms, conference rooms, etc. to receive same hardware as interior rooms
with cylinder locksets.

     E. All hardware to have brushed
aluminum finish.

III. FLOOR
FINISHES

     A. All floors to be prepared in
strict accordance with manufacturer’s recommendations for first quality
installation.

     B. Flooring samples submitted to
tenant for final approval. Selections from manufacturers standards.

B-1-1

     C. Typical carpets to be 26 oz level
loop Bigelow: New Basics or equal direct glue down throughout.

     D. Vinyl floors located in “wet”
rooms, pantries, kitchens, lunchroom, storage rooms or closets, telecom rooms
etc. Vinyl to be Armstrong Excelon or approved equal.

     E. Vinyl base to be installed at all
carpet and vinyl areas manufactured by Roppe or approved equal.

IV. WALL
FINISHES

     A. All drywall/block walls to
receive 2 coats (1 primer and 1 paint) of flat latex wall paint, MAB or
equivalent.

     B. All trim and hollow metal
doorframes to receive 2 coats of Alkyd enamel, semi-gloss by MAB or
equivalent.

     C. Doors to be either factory or
field stained, or field painted with similar paint trim.

V.
CEILINGS

     A. All ceilings to be 2x4 acoustical
ceiling one directional-fissured tile with 15/16” “tee” grid unless otherwise
noted. Located all areas unless otherwise noted.

VI. MINI
BLINDS

     A. Furnish and install 1” horizontal
mini blinds on all exterior windows.

VII. MILLWORK /
CASEWORK

     A. Furnish and install a maximum of
6 LF of plastic laminate base cabinets with counter top and back splash at
pantries.

     B. Furnish and install paint grade
shelf and rod at each coat closet.

VIII. FIRE
PROTECTION

     A. Provide one each 10 lb. ABC fire
extinguisher with cabinet per 4000 SF or as required to meet local code, and at
kitchen/pantries.

     B. Furnish and install branch and
distribution sprinkler piping from base building mains. Size piping based on
hydraulic calculations or pipe schedule if applicable.

     C. Provide semi recessed sprinkler
heads spaced to meet building requirement coverage.

     D. Furnish
and install tampers and flows switch, as required by code.

B-1-2

IX.
HVAC

     A. Furnish and install ductwork,
flex, and diffusers from base building risers and drops for all tenant
areas.

     B. Provide additional digital
programmable thermostats for zones added by tenant design.

     C. Install two (2) Airpac CoolIT
portable A/C units in the Lab/Computer Room area (One (1) CoolIT 2600 series
unit and 1 3000 series unit). 

Provide ducting to
pipe out the hot air, sufficient air flow for return fresh air and drainage
lines for the condensate pumps. 

Provide a 220 Volt
line for the 3000 series unit, and a 110 Volt line for the 2600 series
unit.

X. ELECTRICAL
SYSTEM

     A. Provide electrical circuiting,
switching, and lighting documents for review by tenant.

     B. All installation per local code
and the most recent update of the NEC.

     C. Lighting to be 3 tube 2x4 deep
cell parabolic fixtures with electronic ballast and T-8 lamps. All fit-up areas,
1 fixture per 80 sq. ft.

     D. Typical workstation to have 2 -
20 amp circuits per 4 workstations fed through walls, column or power
pole.

     E. Outlets to be provided as
follows:

	Private office: 2 standard 20 amp
  duplex outlets (except that 3 such outlets will be installed
  in the CEO office).
  
	Meeting/Conference rooms: 1
  standard 20 amp duplex each wall.
  
	Lunch room: Receptacles as
  required for refrigerator, microwave, and coffee maker. GFI
  outlet at counter facility.
  
	General corridors/ Public Space:
  1 standard 20-amp duplex spaced at a maximum distance of 40’
  or as required by local code.

     F. TeleData: All teledata work is to
be provided by tenant. Tenants telecom contractor to provide any fire backboard
required. (Fire rated)

     G. Provide additional fire alarm
devices as required by the fit-out to meet the requirements of local code, NFPA,
BOCA and ADA. Same system will be utilized as the base building
system.

     H. Security: by
tenant.

B-1-3

EXHIBIT
“C”

BUILDING RULES AND
REGULATIONS

     1. The sidewalks, entryways,
passages, corridors, stairways and elevators shall not be obstructed by any of
the tenants, their employees or agents, or used by them for purposes other than
ingress or egress to and from their respective suites. All safes or other heavy
articles shall be carried up or into the leased premises only at such times and
in such manner as shall be prescribed by the Landlord and the Landlord shall in
all cases have the right to specify a maximum weight and proper position or
location of any such safe or other heavy article. The Tenant shall pay for any
damage done to the Building by taking in or removing any safe or from
overloading any floor in any way. The Tenant shall pay for the cost of repairing
or restoring any part of the Building, which shall be defaced or injured by a
tenant, its agents or employees.

     2. Each Tenant will refer all
contractors, contractor’s representatives and installation technicians rendering
any service on or to the leased premises for the tenant to Landlord for
Landlord’s approval and supervision before performance of any contractual
service. This provision shall apply to all work performed in the Building,
including installation of telephones, telegraph equipment, electrical devices
and attachments and installations of any nature affecting floors, walls,
woodwork, trim, windows, ceilings, equipment or any other physical portion of
the Building.

     3. No, sign, advertisement or notice
shall be inscribed, painted or affixed on any part of the inside or outside of
the Building unless of such color, size and style and in such place upon or in
the Building as shall first be designated by Landlord; there shall be no
obligation or duty on Landlord to allow any sign, advertisement or notice to be
inscribed, painted or affixed on any part of the inside or outside of the
Building except as specified in a tenant’s lease. Signs on or adjacent to doors
shall be in color, size and style approved by Landlord, the cost to be paid by
the tenants. Landlord will provide a directory in a conspicuous place, with the
names of tenants, Landlord will make any necessary revision in this within a
reasonable time after notice from the tenant of an error or of a change making
revision necessary. No furniture shall be placed in front of the Building or in
any lobby or corridor without written consent of Landlord.

     4. No tenant shall do or permit
anything to be done in its leased premises, or bring or keep anything therein,
which will in any way increase the rate of fire insurance on the Building, or on
property kept therein, or obstruct or interfere with the rights of other
tenants, or in any way injure or annoy them, or conflict with the laws relating
to fire prevention and safety, or with any regulations of the fire department,
or with any rules or ordinances of any Board of Health or other governing bodies
having jurisdiction over the Building.

     5. The janitor of the Building may
at all times keep a pass-key, and said janitor and other agents of the Landlord
shall at all times, be allowed admittance to the leased premises for purposes
permitted in Tenant’s lease.

     6. No additional locks shall be
placed upon any doors without the written consent of the Landlord, except Tenant
may place a lock on Tenant’s server room without first obtaining Landlord’s
written consent. All necessary keys shall be furnished by the Landlord, and the
same shall be surrendered upon the termination of this Lease, and the Tenant
shall then give the Landlord or its agents explanation of the combination of all
locks upon the doors of vaults.

C-1

     7. The water closets and other water
fixtures shall not be used for any purpose other than those for which they were
constructed, and any damage resulting to them from misuse or abuse by a tenant
or its agents, employees or invitees, shall be borne by the Tenant.

     8. No person shall disturb the
occupants of the Building by the use of any musical instruments; the making or
transmittal of noises which are audible outside the leased premises, the making
of odors which are apparent outside the leased premises, or any unreasonable
use. No dogs or other animals or pets of any kind will be allowed in the
Building.

     9. Nothing shall be thrown out of
the windows of the Building or down the stairways or other passages.

     10. Tenants shall not be permitted
to use or to keep in the Building any kerosene, camphene, burning fluid or other
illuminating materials.

     11. If any tenant desires
telegraphic, telephonic or other electric connections, Landlord or its agents
will direct the electricians as to what and how the wires may be introduced, and
without such directions no boring or cutting for wires will be
permitted.

     12. If a tenant desires shades
(other than those provided by Landlord), they must be of such shape, color,
materials and make as shall be prescribed by Landlord. No outside awning shall
be permitted.

     13. No portion of the Building shall
be used for the purposes of lodging rooms or for any immoral or unlawful
purposes.

     14. No tenant shall store anything
outside the Building or in any common areas in the Building.

     15. All vending machines (other than
up to two (2) vending machine for on-Premises consumption) and/or services
dispensing food or snacks require Landlord’s prior approval.

C-2

EXHIBIT
“D”

SPECIFICATIONS FOR
JANITORIAL SERVICES

A. Daily: The
following services are to be performed on a daily basis (Monday through Friday,
except for legal holidays, unless otherwise provided herein):

     1. Empty all trash containers,
wastebaskets and recycling containers, including all exterior trash
containers

     2. Damp wipe all areas of desk and
credenza tops, file cabinets, counters, sills and ledges. Dust under all desk
equipment and telephone and replace same. Clean and disinfect telephone
equipment.

     3. Dust mop all hard surface
flooring and remove debris or dust buildup from corners. Damp mop cove base and
any areas where spillage may have occurred.

     4. Vacuum all carpeted areas and
remove spots from carpet and mats. Remove gum, tar, etc. adhering to
floor.

     5. Vacuum entrance mats and
runners.

     6. Remove finger marks and smudges
from all doors, frames, walls, partitions, switch plates and

     7. Wash and squeegee clean all side
lights to offices and all glass doors.

     8. Damp wipe the framework and
ledges at all entrance ways. Dust picture frames, baseboards, and wall hangings
as needed.

     9. Special attention is to be paid
to all common areas such as lobbies, reception areas and conference areas to
maintain superior quality of appearance.

     10. Trash and debris is to be
removed to a dumpster area so designated at the site, secured in heavy-duty
plastic bags. Trash bags are to be placed in a cart to be taken to dumpster.
Trash bags are not to be put in elevator unless they are in a cart. Nothing in
tenant space is to be thrown away unless in a wastebasket or specifically marked
trash.

     11. Wipe down all vinyl floor mats
as needed.

     12. Clean elevator thresholds
nightly, certificate holder and panels.

     13. Clean, sanitize and polish all
drinking fountains.

     14. Wipe down all tenant and
building doors to remove fingerprints and soil.

     15. Cleaning and disinfecting of
lavatories.

D-1

          (a) Empty all waste containers and replace bags inside containers
(plastic liners purchased specifically for recessed stainless containers, shall
remain in containers after trash is removed.

          (b)
Sweep and/or damp mop floors.

          (c) Fill and maintain all toilet tissue, soap and towel dispensers,
personal seat dispensers and sanitary protection dispensers. Sanifresh gentle
lotion cleaner or liquid soap, napkin receptacle, trash can liners, personal
seat covers.

          (d)
Disinfect all fixtures and disposals.

          (e) Thoroughly clean and disinfect all sinks, bowls and urinals. Pour
water down floor drains on each floor.

          (f)
Clean all counter tops and cosmetic shelves.

          (g)
Clean and polish all mirrors and chrome fixtures.

          (h) Damp mop floor (including the cafeteria) with disinfecting
solution including tile baseboards, pay special attention to corners and under
urinals.

          (i) Clean and polish outside of all waste containers.

          (j)
Wipe down entrance doors and signage. 

          (k)
Wipe down wall tile as needed. 

          (l)
High dust all partitions and low dust baseboards. 

          (m)
Clean and disinfect all sanitary disposal units. 

     16. As needed
basis:

          High
dust all horizontal and vertical surfaces not reached daily.

     17. Turn off all
lights and secure all designated interior doors and all exterior entrances upon
completion of work assignments according to the security procedures as to each
tenants individual security system. Supervisor should check all doors at the end
of each evening to ensure they are secure.

     18. All dumpster areas are to be
kept clean.

     19. Areas provided
for storage of janitorial supplies and equipment to be kept orderly and clean at
all times.

B. Weekly

     20. Maintain marble surfaces with
Multi-Seal as per manufacturer’s specifications.

D-2

     21. Maintain all types of flooring
as per manufacturer’s specifications.

     22. Sweep entrance to
building.

     23. Dust tops of cubicle
furniture.

C.
Monthly

     24. All lights lenses and air
diffusers are to be cleaned the first Friday of each month.

     25. Damp wash diffusers, vents,
grills and light lenses that are soiled.

     26. Dust venetian blinds and window
frames (every other month).

D.
Quarterly

     27. Strip and wax all VCT tile in
all tenant and common areas.

     28. Perform maintenance to all types
of flooring as per manufacturer’s specifications.

E.
Semi-Annually

     29. Damp wipe venetian
blinds.

F. Performance of
Extra Janitorial Services

     Performance of any extra work over
and above the scope of the contract will be done only by written authorization
by Landlord. Invoicing for same will be separate from regular invoicing. A
purchase order must be obtained prior to performing work. If a purchase order is
not obtained prior to work being performed, Landlord will not be responsible for
the cost of same.

     Extras shall include cleaning
services and trash removal to be provided on Saturdays and Sundays or related
Tenant’s activities on weekends (e.g., cleaning the Premises prior to
commencement of business on Mondays). In the event Tenant requires such
services, Tenant shall provide a written request to Landlord therefor and Tenant
shall promptly pay Landlord, upon presentation of a bill or bills therefor, for
the cost of such additional services.

G. Tenant’s Right to
Hire Additional Help

     Provided that no undue interference
is caused to Landlord’s Contractor, Tenant shall have the right, as its sole
cost and expense, with prior written approval by Landlord, to hire additional
service for the cleaning of the premises. All labor, supervision equipment, and
cleaning supplies required for the proper performance of this work, unless
otherwise specified, is to be furnished by a contractor of Tenant’s choice.
Contractor must provide Landlord with adequate insurance coverages.

D-3

EXHIBIT
“E”

APPRAISAL
PROVISIONS 

     If Tenant shall serve upon Landlord,
within the time and in the manner required under the Lease, a Renewal Appraisal
Notice, then the Renewal Term Annual Base Rent shall be determined by appraisal
in accordance with the following:

     1. Tenant, by designation in the
Renewal Appraisal Notice, shall appoint an appraiser in compliance with
Paragraph 6 below (“Tenant’s Appraiser”). Landlord or Tenant shall furnish to
Tenant’s Appraiser a copy of the Initial Renewal Rent Notice. Within thirty (30)
days after the date of Landlord’s receipt of the Renewal Appraisal Notice,
Tenant shall deliver to Landlord the written good-faith determination of
Tenant’s Appraiser of the Renewal Fair Market Annual Base Rent (“Tenant’s
Renewal Rent Determination”), based upon the parameters set forth in Section
34(c) of the Lease. If Tenant fails to deliver to Landlord Tenant’s Renewal Rent
Determination before the expiration of such thirty (30) day period, then Tenant
and Landlord shall be conclusively deemed to have agreed to Landlord’s Renewal
Rent Determination, and the Renewal Term Annual Base Rent shall equal the
Renewal Term Annual Base Rent set forth in Landlord’s Renewal Rent
Determination.

     2. Provided Landlord has received
Tenant’s Renewal Rent Determination within the time set forth in Paragraph 1
above, Landlord and Tenant’s Appraiser, within fifteen (15) days after
Landlord’s receipt of the Tenant’s Renewal Rent Determination, shall jointly
appoint a mutually agreeable second appraiser in accordance with Paragraph 6
below who shall be impartial (herein called the “Final Appraiser”) and notify
Tenant thereof. If Landlord and Tenant’s Appraiser fail to agree upon and
appoint the Final Appraiser within such 15-day period, then either Landlord or
Tenant may request that the American Arbitration Association (“AAA”) appoint the
Final Appraiser within ten (10) days after such request, and both parties shall
be bound by any appointment so made within such 10-day period. If the Final
Appraiser shall not have been appointed within such 10-day period, then either
Landlord or Tenant may apply to any court having jurisdiction to make such
appointment. The Final Appraiser shall subscribe and swear to an oath to fairly
and impartially perform his duties hereunder.

     3. Within fifteen (15) days after
the appointment of the Final Appraiser, Landlord shall submit a copy of the
Initial Renewal Rent Notice to the Final Appraiser, and Tenant shall submit a
copy of Tenant’s Renewal Rent Determination to the Final Appraiser. If either
Landlord or Tenant shall fail to submit such materials in accordance with the
provisions of this Paragraph 3 of this Exhibit “E”, then the Final Appraiser
shall notify any party which failed to submit its required materials of its
failure (which notice shall refer specifically to this Paragraph 3 of this
Exhibit “E”), and if, in such event, the failing party does not, within a period
of ten (10) days after its receipt of such notice, submit its required
materials, then (i) if Tenant failed to so submit its required materials, the
Renewal Term Annual Base Rent shall be the amount thereof set forth in
Landlord’s Renewal Rent Determination, or (ii) if Landlord failed to so submit
its required materials, the Renewal Term Annual Base Rent shall be determined
using the Renewal Fair Market Annual Base Rent set forth in Tenant’s Renewal
Rent Determination, and any such determination shall be conclusive and binding
upon both Landlord and Tenant.

E-1

     4. If both Landlord and Tenant
submit their respective required materials in accordance with the provisions of
Paragraph 3 of this Exhibit “E”, then the Final Appraiser, within twenty (20)
days after its receipt of both sets of required materials, shall select which of
Landlord’s Renewal Rent Determination or Tenant’s Renewal Rent Determination, in
his opinion, more accurately reflects the Renewal Fair Market Annual Base Rent,
and shall notify Landlord and Tenant of such selection in writing. The Renewal
Fair Market Annual Base Rent set forth in the selected Fair Market Determination
shall be used to determine the Renewal Term Annual Base Rent, and such
determination shall be conclusive and binding upon both Landlord and
Tenant.

     5. The fees and expenses of any such
appraisal process shall be borne by the parties equally, except that Landlord
shall bear the expense, if any, of the Initial Renewal Rent Notice and Tenant
shall bear the expense of Tenant’s Appraiser, and each party shall bear the
expense of its attorneys and experts.

     6. The Final Appraiser shall be a
disinterested person who shall be a member of the “MAI” society of appraisers and shall have
had of at least ten (10) years experience as a real estate appraiser in the
State of New Jersey in leasing and valuation of first-class commercial office
real estate properties in the “Hamilton, New Jersey” office
market.

     7. It is expressly understood, and
each appraiser shall acknowledge and agree, that any determination of the
Renewal Fair Market Annual Base Rent shall be based solely on the definition
thereof as set forth in Section 34(c) of the Lease, including the assumptions
and criteria set forth in such definitions. The appraisers shall not have the
power to add to, modify or change any such definitions or any other provisions
of the Lease, and the jurisdiction of the appraisers is accordingly
limited.

E-2

EXHIBIT
“F”

PROHIBITED
USE

The use of the
Premises for the purposes specified in Section 3.1 of this Lease shall not in
any event be deemed to include, and Tenant shall not use, or permit the use of,
the Premises or any part thereof for:

     (a) sale at retail of any products
or materials;

     (b) the conduct of a public auction
of any kind;

     (c) the conduct of a bank, trust
company, savings bank, safe deposit, savings and loan association or bank or any
branches of any of the foregoing or a loan company business;

     (d) the issuance and sale of
traveler’s checks, foreign drafts, letters of credit, foreign exchange or
domestic money order or the receipt of money for transmission;

     (e) an employment
agency;

     (f) product display activities (such
as those of a manufacturer’s representative);

     (g) offices or agencies of a foreign
government or political subdivisions thereof;

     (h) offices of any governmental
bureau or agency of the United States or any state or political subdivision
thereof;

F-1

     (i) offices of any public utility
company, other than corporate, executive or legal staff offices;

     (j) data processing services
rendered primarily to others than Tenant and which are not strictly ancillary to
Tenant’s business;

     (k) health care or beauty
professionals;

     (l) schools or other training or
educational uses (other than those which are strictly ancillary to the Tenant’s
business, such as training of Tenant’s personnel to be employed in the
Building);

     (m) clerical support concerns
rendering clerical support services primarily to others than Tenant or
performing functions other than those which are strictly ancillary to Tenant’s
business;

     (n) reservation centers for airlines
or for travel agencies;

     (o) broadcasting centers for
communications firms, such as radio and television stations; or

     (p) any other use or purpose which,
in the reasonable judgment of Landlord, is not in keeping with the character and
dignity of the Building.

F-2

EXHIBIT
“G”

ALTERATIONS RULES
AND REGULATIONS

     A. Prior to Commencing
Construction

     1. Plans. Submit plans and
specifications (or other descriptions reasonably acceptable to Landlord) of the
proposed Alterations to Landlord for its review and written approval. If
Landlord raises any issues as a result of its review of the submitted plans and
specifications, these issues must be resolved to Landlord's reasonable
satisfaction. Alterations to structural components of the Building shall be
reviewed and approved in Landlord's sole and absolute discretion and
non-structural changes shall be approved at Landlord's discretion, which shall
not be unreasonably withheld, conditioned or delayed. Once approved, no changes,
amendments or additions to the plans and specifications may be made without
Landlord's prior written consent, which shall not be unreasonably withheld,
conditioned or delayed.

     2. Contractors. The general
contractor, contractors and subcontractors selected by Tenant must be approved by Landlord; such
approval shall not be unreasonably withheld, conditioned or delayed. To the
extent permitted by applicable Legal Requirements, provisions must be made for
all contractors, laborers and materialmen to provide written lien waivers
related to the approved Alterations.

     3. Insurance. The general
contractor, contractors and subcontractors selected by Tenant must provide certificates of insurance
evidencing the coverage shown below prior to beginning any work on the approved
Alterations. This coverage must be maintained in full force and effect until
such time as the approved Alterations are fully completed. Any delay by Tenant
in causing these certificates to be provided will result in a delay in the
commencement of the approved Alterations.

     4. Permits. Tenant must obtain all
required permits ("Permits") and furnish copies thereof to Landlord.

     5. Coordination. Tenant shall
contact Landlord's Property Manager to arrange a pre-construction meeting and
walk-through with the Tenant's contractor. During this walk-through these Rules
and Regulations, hours of operation and access will be reviewed and areas of the
Building (e.g. lobby floors and walls, elevators, electrical closets and doors)
will be inspected. These areas will be inspected after completion of the
approved Alterations to determine whether or not any damage has occurred
thereto. Any damage will be repaired to Landlord's reasonable
satisfaction.

     B. During
Construction.

     1. Compliance. All work on the
approved Alterations shall, at all times, comply with laws, rules, orders and
regulations of all applicable governmental authorities and insurance bodies and
the Permits.

     2. Schedule. If requested,
construction work schedules must be filed with Landlord's Property Manager.
Contractors must check in each day with the designated Building engineer.
Landlord's Property Manager must be notified, in writing, of the names of any
persons working on the approved Alterations who may be working in the Building
after the normal business hours.

G-1

     3. Coordination. Twenty-four (24)
hour advance written notice must be provided to Landlord's Property
Manager:

          (a)
before commencing any and all work which may cause disruption to other tenants
or interruption to the Building's systems and Landlord's Property Manager may
require that work deemed inappropriate to be conducted during normal business
hours be done after hours; or,

          (b) if
access to utility rooms or the roof will be necessary (anyone on the roof must
be escorted by property management at all times); or,

          (c) if
the fire panel is to be taken out of service; or,

          (d) if
there is to be any interruption to any Building system or utility;
or,

          (e) if
cranes are to be placed on the property; or,

          (f) if
a window is to be removed for the delivery of drywall or any other large item;
or,

          (g) if
there is to be a delivery after normal business hours.

     4. Material Delivery and Storage.
All deliveries are to come through the loading and service areas of the
Building. All construction materials, tools and trash are to be transferred to
and from the construction floor via the freight elevator or stairs. At no time
may the passenger elevators be used to move materials, tools or trash. Tenant
and its contractor shall be responsible for (i) protecting the freight elevator
to the satisfaction of Landlord's Property Manager, and (ii) observing the load
limits for the freight elevator and (iii) any damages due to improper use or
overloading of the freight elevator. Use of the freight elevator shall be
scheduled in advance with the security guard and the contractor may be required
to share the freight elevator with the cleaning crew. Materials must be
immediately placed in Tenant's leased premises and may not be stored in any of
the Building's Public Areas.

     5. Damage. Tenant and its
contractors shall be responsible for any damage to the Building or the Building's systems caused by
or arising out of the making of the approved Alterations and shall promptly
repair it to the reasonable satisfaction of Landlord. Precautions to minimize
damage to the Public Areas of the Building should be taken, including protection
of doors, carpets, elevator cabs and hallways. Masonite must be placed on the
floors of any public corridor to protect the floor covering. In Public Areas
with carpeting, the floor protection is to be removed and the carpet vacuumed
daily. If the approved Alteration will involve drywall sanding or other dust
producing activities, all air and smoke detectors must be covered during drywall
sanding or other dust producing activities. Tenant's contractor must provide
sufficient fire extinguishers at all times.

G-2

     6. Trash. Regular Building dumpsters
are not to be used for construction debris without the prior approval of
property management. Tenant and its contractor(s) are responsible for ensuring
that all trash is placed properly within a separate construction dumpster and
for clearing, on a daily basis, the public areas and exterior of the Building of
all chutes are to be approved by property management prior to beginning the
approved Alterations. The dumpster shall be placed on plywood to protect any
travel/parking areas.

     7. Miscellaneous. Landlord shall
designate parking areas available for contractors. No vehicles of any contractor or
subcontractor are to block service areas or any dumpster at any time. There is
to be no smoking in the Building and the volume of all radios shall be kept at a
level that will not be audible to other tenants in the Building. No contractor
or subcontractor may display any signage on the Building, in the public areas or
on any of the window glass without the prior written consent of Landlord's
Property Manager.

     C. After
Completion

     1. Coordination. A re-inspection of
the lobby floor and walls, doors, electrical closets and any other areas
impacted by the approved Alterations shall be made by Landlord's Property
Manager to determine whether any construction damage has occurred or any
clean-up is required.

     2. Plans. Tenant shall provide
Landlord with:

          (a)
one (1) reproducible mylar and two (2) blueprints of the as-built architectural,
plumbing, electrical and mechanical condition of the leased premises each signed
and stamped by a licensed architect or engineer; and,

          (b)
complete specifications for the approved Alterations, including shop drawings
and cut sheets for all new equipment and a detailed description of all finishes
actually installed; and,

          (c)
two (2) copies of operations and maintenance information for all new equipment
and an air balance report in a format reasonably acceptable to
Landlord.

     3. Permits.
Landlord will obtain a temporary or final Certificate of Occupancy from the
applicable governmental authority and will provide Tenant with a copy
thereof.

     4.
Contractor. To the extent permitted by applicable Legal Requirements, a final
waiver and release of liens shall be provided from the general contractor and
major subcontractors upon completion of the approved Alterations.

G-3

MINIMUM REQUIRED INSURANCE FOR CONTRACTORS AND
SUBCONTRACTORS

	General
      Liability (Occurrence Form) 	Additional Named
      Insureds 
	$2,000,000 	General
      Aggregate 	240 Princeton TCI
      Associates, L.L.C. 
	$1.000,000 	Products/Completed
      Operations Aggregate 	 
	$1,000,000 	Personal and
      Advertising Injury 	 
	$1,000,000 	Each
    Occurrence 	Certificate
      Holder 
	$  
      500,000 	Fire
    Damage 	240 Princeton TCI
      Associates, L.L.C. 
	$       5,000 	Medical
    Expense 	c/o Meritage
      Properties 
	 	 	 	2 Overhill Road, Suite
      425 
	 	 	 	Scarsdale, NY
      10583 

	Automobile
      Liability (Owned, Non-Owned & Hired) 	 
	$1,000,000 	Each
    Occurrence 	Notice of
      Cancellation 
	 	 	
      Certificate must provide that
      such insurance shall not be cancelled or modified without at least 30 days
      written notice to each named insured

Umbrella Liability 
$2,000,000        Each
Occurrence

Worker=s Compensation

Statutory Limits

Large or complex approved Alterations
may require that the contractors provide insurance in excess of these minimum
required levels.

G-4Exhibit 10.2

2007 AMENDMENT TO 2003 STOCK
INCENTIVE PLAN 

VOXWARE, INC. 

2003 STOCK INCENTIVE PLAN 

(Amended and Restated as of December 13,
2007) 

Purpose 

     1.
The purpose of this 2003 Stock Incentive Plan
(the “Plan”) of Voxware, Inc., a Delaware
corporation (the “Company”), is to advance
the interests of the Company’s stockholders by enhancing the Company’s ability
to attract, retain and motivate persons who make (or are expected to make)
important contributions to the Company by providing such persons with equity
ownership opportunities and performance-based incentives and thereby better
aligning the interests of such persons with those of the Company’s stockholders.
Except where the context otherwise requires, the term “Company” shall include
any of the Company’s present or future parent or subsidiary corporations as
defined in Sections 424(e) or (f) of the Internal Revenue Code of 1986, as
amended, and any regulations promulgated thereunder (the “Code”) and any other
business venture (including, without limitation, joint venture or limited
liability company) in which the Company has a controlling interest, as
determined by the Board of Directors of the Company (the “Board”). 

Eligibility 

     2.
All of the Company’s employees, officers,
directors, consultants and advisors are eligible to be granted options,
restricted stock awards or restricted stock unit awards (each, an “Award”) under
the Plan. Each person who has been granted an Award under the Plan shall be
deemed a “Participant”. 

Administration and
Delegation 

     Administration by Board of Directors.
The Plan will be administered by the Board. The Board shall have authority to
grant Awards and to adopt, amend and repeal such administrative rules,
guidelines and practices relating to the Plan as it shall deem advisable. The
Board may correct any defect, supply any omission or reconcile any inconsistency
in the Plan or any Award in the manner and to the extent it shall deem expedient
to carry the Plan into effect and it shall be the sole and final judge of such
expediency. All decisions by the Board shall be made in the Board’s sole
discretion and shall be final and binding on all persons having or claiming any
interest in the Plan or in any Award. No director or person acting pursuant to
the authority delegated by the Board shall be liable for any action or
determination relating to or under the Plan made in good faith. 

     Appointment of Committees. To the
extent permitted by applicable law, the Board may delegate any or all of its
powers under the Plan to one or more committees or subcommittees of the Board (a
“Committee”). All references in the Plan to the “Board” shall mean the Board or
a Committee of the Board to the extent that the Board’s powers or authority
under the Plan have been delegated to such Committee. 

Stock Available for
Awards 

     Number
of Shares. Subject to adjustment under
Section 8, Awards may be made under the Plan for up to 1,534,734 shares of common stock,
$0.001 par value per share, of the Company (the “Common Stock”). Such authorized
share reserve includes a 550,000
share increase authorized by the Board on
October 15, 2007, subject to stockholder approval at the 2007 Annual Meeting. If
any Award expires or is terminated, surrendered or canceled without having been
fully exercised or is forfeited in whole or in part (including as the result of
unvested shares of Common Stock subject to such Award being repurchased by the
Company pursuant to a contractual repurchase right) or results in any Common
Stock not being issued, the unused Common Stock covered by such Award shall
again be available for the grant of Awards under the Plan, subject, however, in
the case of Incentive Stock Options (as hereinafter defined), to any limitations
under the Code. Shares issued under the Plan may consist in whole or in part of
authorized but unissued shares or treasury shares. 

     Per-Participant Limit. Subject to
adjustment under Section 8, the maximum number of shares of Common Stock with
respect to which Awards may be granted to any Participant under the Plan shall
be 350,000
per calendar year. The per-Participant limit described in this Section 4(b)
shall be construed and applied consistently with Section 162(m) of the Code
(“Section 162(m)”) and is subject to stockholder approval at the 2007 Annual
Meeting. 

Stock Options 

     General. The Board may grant options
to purchase Common Stock (each, an “Option”) and determine the number of shares
of Common Stock to be covered by each Option, the exercise price of each Option
and the conditions and limitations applicable to the exercise of each Option,
including conditions relating to applicable federal or state securities laws, as
it considers necessary or advisable. An Option which is not intended to be an
Incentive Stock Option (as hereinafter defined) shall be designated a
“Nonstatutory Stock Option”. 

     Incentive Stock Options. An Option
that the Board intends to be an “incentive stock option” as defined in Section
422 of the Code (an “Incentive Stock Option”) shall only be granted to employees
of Voxware, Inc., any of Voxware, Inc.’s present or future parent or subsidiary
corporations as defined in Sections 424(e) or (f) of the Code and shall be
subject to and shall be construed consistently with the requirements of Section
422 of the Code. The Company shall have no liability to a Participant, or any
other party, if an Option (or any part thereof) that is intended to be an
Incentive Stock Option is not an Incentive Stock Option. 

     Dollar
Limitation. The aggregate Fair Market Value
of the shares of Common Stock (determined as of the respective date or dates of
grant) for which one or more options granted to any employee under the Plan (or
any other option plan of the Company or any parent or subsidiary corporations as
defined in Code Sections 424(e) or (f)) may for the first time become
exercisable as Incentive Stock Options during any one calendar year shall not
exceed the sum of One Hundred Thousand Dollars ($100,000). 

     To the
extent a Participant holds two (2) or more such options which become exercisable
for the first time in the same calendar year, then for purposes of the foregoing
limitations on the exercisability of those options as Incentive Stock Options,
such options shall be deemed to become first exercisable in that calendar year
on the basis of the chronological order in which they were granted, except to
the extent otherwise provided under applicable law or regulation.

     Exercise Price. The Board shall
establish the exercise price at the time each Option is granted and specify it
in the applicable option agreement; provided, however, that the exercise price
per share shall not be less than one hundred percent (100%) of the Fair Market
Value of the Common Stock on the grant date. For purposes of the Plan, “Fair
Market Value” per share of Common Stock on any relevant date shall be the
closing selling price per share of Common Stock on the date in question on the
national market or stock exchange serving as the primary market for the Common
Stock, as such price is reported by the National Association of Securities
Dealers (if primarily traded on the Nasdaq Global, Nasdaq Global Select or
Nasdaq Capital Market) or as officially quoted in the composite tape of
transactions on any stock exchange on which the Common Stock is primarily
traded. If there is no closing selling price for the Common Stock on the date in
question, then the Fair Market Value shall be the closing selling price on the
last preceding date for which such quotation exists. 

     Duration of Options. Each Option shall
be exercisable at such times and subject to such terms and conditions as the
Board may specify in the applicable option agreement provided, however, that no
Option will be granted for a term in excess of 10 years. 

     Exercise of Option. Options may be
exercised by delivery to the Company of a written notice of exercise signed by
the proper person or by any other form of notice (including electronic notice)
approved by the Board together with payment in full as specified in Section 5(g)
for the number of shares for which the Option is exercised. 

     Payment Upon Exercise. Common Stock
purchased upon the exercise of an Option granted under the Plan shall be paid
for as follows: 

	
  in cash or by check, payable to the order of the Company; 

  
	
  except as the Board may, in its sole
  discretion, otherwise provide in an option agreement, by (i) delivery of an
  irrevocable and unconditional undertaking by a creditworthy broker to deliver
  promptly to the Company sufficient funds to pay the exercise price and any
  required tax withholding or (ii) delivery by the Participant to the Company of
  a copy of irrevocable and unconditional instructions to a creditworthy broker
  to deliver promptly to the Company cash or a check sufficient to pay the
  exercise price and any required tax withholding; 

  
	
  by delivery of shares of Common Stock
  owned by the Participant valued at Fair Market Value on the exercise date,
  provided (i) such method of payment is then permitted under applicable law and
  (ii) such Common Stock has been held for the requisite period (if any)
  necessary to avoid any resulting charge to the Company’s earnings for
  financial reporting purposes; or 

  
	
  by any combination of the above
  permitted forms of payment. 

     Substitute Options. In connection with
a merger or consolidation of an entity with the Company or the acquisition by
the Company of property or stock of an entity, the Board may grant Options in
substitution for any options or other stock or stock-based awards granted by
such entity or an affiliate thereof. Substitute Options may be granted on such
terms as the Board deems appropriate in the circumstances, notwithstanding any
limitations on Options contained in the other sections of this Section 5 or in
Section 2.

Restricted Stock 

     Grants. The Board may grant Awards
entitling recipients to acquire shares of Common Stock, subject to the right of
the Company to repurchase all or part of such shares at their issue price or
other stated or formula price (or to require forfeiture of such shares if issued
at no cost) from the recipient in the event that conditions specified by the
Board in the applicable Award are not satisfied prior to the end of the
applicable restriction period or periods established by the Board for such Award
(each, a “Restricted Stock Award”). 

     Terms
and Conditions. The Board shall determine the
terms and conditions of any such Restricted Stock Award, including the
conditions for repurchase (or forfeiture) and the issue price, if
any.

     Stock
Certificates. Any stock certificates issued
in respect of a Restricted Stock Award shall be registered in the name of the
Participant and, unless otherwise determined by the Board, deposited by the
Participant, together with a stock power endorsed in blank, with the Company (or
its designee). At the expiration of the applicable restriction periods, the
Company (or such designee) shall deliver the certificates no longer subject to
such restrictions to the Participant or if the Participant has died, to the
beneficiary designated, in a manner determined by the Board, by a Participant to
receive amounts due or exercise rights of the Participant in the event of the
Participant’s death (the “Designated Beneficiary”). In the absence of an
effective designation by a Participant, Designated Beneficiary shall mean the
Participant’s estate. 

Restricted Stock
Units 

     Grant
of Restricted Stock Unit Awards. The Board
may grant restricted stock units (“Restricted Stock Unit Award”) entitling
recipients to receive shares of Common Stock on such terms and conditions as may
be selected by the Board. The Board shall have the complete discretion to
determine the number of units subject to each Restricted Stock Unit Award.

Vesting and Issuance
Provisions. 

     Restricted Stock Unit Awards may, in the discretion of the Board, vest
upon the attainment of designated performance objectives or the satisfaction of
specified employment or service requirements. Shares of Common Stock subject to
the Restricted Stock Unit Awards may be issued on the vesting date or upon the
expiration of a designated time period or the occurrence of a designated event
following the vesting of the Award, including (without limitation) a deferred
distribution date following the termination of the Participant’s employment or
service. The vesting and issuance provisions applicable to each Restricted Stock
Unit Award shall be set forth in the Participant’s Restricted Stock Unit Award
agreement. 

     The
Participant shall not have any stockholder rights with respect to the shares of
Common Stock subject to a Restricted Stock Unit Award until that Award vests and
the shares of Common Stock are actually issued thereunder. However,
dividend-equivalent units may be paid or credited, either in cash or in actual
or phantom shares of Common Stock, on outstanding Restricted Stock Unit Awards,
subject to such terms and conditions as the Board may deem
appropriate.

     Outstanding Restricted Stock Unit Awards shall automatically terminate,
and no shares of Common Stock shall actually be issued in satisfaction of those
Awards, if the performance objectives or employment or service requirements
established for those Awards are not attained or satisfied. The Board, however,
shall have the discretionary authority to issue vested shares of Common Stock
under one or more outstanding Restricted Stock Unit Awards as to which the
designated performance objectives or employment or service requirements have not
been attained or satisfied. 

Adjustments for Changes in Common
Stock and Certain Other Events 

     Changes in Capitalization. In the
event of any stock split, reverse stock split, stock dividend, recapitalization,
combination of shares, reclassification of shares, spin-off or other similar
change in capitalization or event, or any distribution to holders of Common
Stock other than a normal cash dividend, (i) the number and class of securities
available under this Plan, (ii) the per-Participant limit set forth in Section
4(b), (iii) the number and class of securities and exercise price per share
subject to each outstanding Option, (iv) the repurchase price per share subject
to each outstanding Restricted Stock Award and (v) the number and class of
securities subject to each outstanding Restricted Stock Unit Award under the
Plan shall be equitably adjusted by the Board in such manner as the Board deems
appropriate in order to preclude the enlargement or dilution of rights and
benefits thereunder, and those adjustments shall be final, binding and
conclusive. If this Section 8(a) applies and Section 8(c) also applies to any
event, Section 8(c) shall be applicable to such event, and this Section 8(a)
shall not be applicable. 

     Liquidation or Dissolution. In the
event of a proposed liquidation or dissolution of the Company, the Board shall
upon written notice to the Participants provide that all then unexercised
Options will (i) become exercisable in full as of a specified time at least 10
business days prior to the effective date of such liquidation or dissolution and
(ii) terminate effective upon such liquidation or dissolution, except to the
extent exercised before such effective date. The Board may specify the effect of
a liquidation or dissolution on any Restricted Stock Award and Restricted Stock
Unit Award granted under the Plan at the time of the grant. 

Reorganization
Events. 

     Definition. A “Reorganization Event”
shall mean: (a) any merger or consolidation of the Company with or into another
entity as a result of which all of the Common Stock of the Company is converted
into or exchanged for the right to receive cash, securities or other property or
(b) any exchange of all of the Common Stock of the Company for cash, securities
or other property pursuant to a share exchange transaction. 

 

     Consequences of a Reorganization Event on Options. Upon the occurrence of a Reorganization Event, the Board
shall provide that all outstanding Options shall be assumed, or equivalent
options shall be substituted, by the acquiring or succeeding corporation (or an
affiliate thereof). For purposes hereof, an Option shall be considered to be
assumed if, following consummation of the Reorganization Event, the Option
confers the right to purchase, for each share of Common Stock subject to the
Option immediately prior to the consummation of the Reorganization Event, the
consideration (whether cash, securities or other property) received as a result
of the Reorganization Event by holders of Common Stock for each share of Common Stock held immediately prior to the
consummation of the Reorganization Event (and if holders were offered a choice
of consideration, the type of consideration chosen by the holders of a majority
of the outstanding shares of Common Stock); provided, however, that if the
consideration received as a result of the Reorganization Event is not solely
common stock of the acquiring or succeeding corporation (or an affiliate
thereof), the Company may, with the consent of the acquiring or succeeding
corporation, provide for the consideration to be received upon the exercise of
Options to consist solely of common stock of the acquiring or succeeding
corporation (or an affiliate thereof) equivalent in fair market value to the per
share consideration received by holders of outstanding shares of Common Stock as
a result of the Reorganization Event. 

     3. Notwithstanding the foregoing, if the acquiring or succeeding corporation
(or an affiliate thereof) does not agree to assume, or substitute for, such
Options, then the Board shall, upon written notice to the Participants, provide
that all then unexercised Options will become exercisable in full as of a
specified time prior to the Reorganization Event and will terminate immediately
prior to the consummation of such Reorganization Event, except to the extent
exercised by the Participants before the consummation of such Reorganization
Event; provided, however, that in the event of a Reorganization Event under the
terms of which holders of Common Stock will receive upon consummation thereof a
cash payment for each share of Common Stock surrendered pursuant to such
Reorganization Event (the “Acquisition Price”), then the Board may instead
provide that all outstanding Options shall terminate upon consummation of such
Reorganization Event and that each Participant shall receive, in exchange
therefor, a cash payment equal to the amount (if any) by which (A) the
Acquisition Price multiplied by the number of shares of Common Stock subject to
such outstanding Options (whether or not then exercisable), exceeds (B) the
aggregate exercise price of such Options. To the extent all or any portion of an
Option becomes exercisable solely as a result of the first sentence of this
paragraph, upon exercise of such Option the Participant shall receive shares
subject to a right of repurchase by the Company or its successor at the Option
exercise price. Such repurchase right (1) shall lapse at the same rate as the
Option would have become exercisable under its terms and (2) shall not apply to
any shares subject to the Option that were exercisable under its terms without
regard to the first sentence of this paragraph. 

     Consequences of a Reorganization Event on Restricted Stock
Awards. Upon the occurrence of a
Reorganization Event, the repurchase and other rights of the Company under each
outstanding Restricted Stock Award shall inure to the benefit of the Company’s
successor and shall apply to the cash, securities or other property which the
Common Stock was converted into or exchanged for pursuant to such Reorganization
Event in the same manner and to the same extent as they applied to the Common
Stock subject to such Restricted Stock Award. 

     Consequences of a Reorganization Event on Restricted Stock Unit
Awards. Upon the occurrence of a
Reorganization Event, the Board shall provide that all outstanding Restricted
Stock Unit Awards shall be assumed, or equivalent restricted stock unit awards
shall be substituted, by the acquiring or succeeding corporation (or an
affiliate thereof). For purposes hereof, a Restricted Stock Unit Award shall be
considered to be assumed if, following consummation of the Reorganization Event,
the Restricted Stock Unit Award confers the right to receive, for each share of
Common Stock subject to the Restricted Stock Unit Award immediately prior to the
consummation of the Reorganization Event, the consideration (whether cash,
securities or other property) received as a result of the Reorganization Event
by holders of Common Stock for each share of Common Stock held immediately prior
to the consummation of the Reorganization Event (and if holders were offered a
choice of consideration, the type of consideration chosen by the holders of a
majority of the outstanding shares of Common Stock); provided, however, that if
the consideration received as a result of the Reorganization Event is not solely
common stock of the acquiring or succeeding corporation (or an affiliate
thereof), the Company may, with the consent of the acquiring or succeeding
corporation (or affiliate thereof), provide for the consideration to be received
upon the vesting of the Restricted Stock Unit Awards to consist solely of common
stock of the acquiring or succeeding corporation (or an affiliate thereof)
equivalent in fair market value to the per share consideration received by
holders of outstanding shares of Common Stock as a result of the Reorganization
Event. 

     Notwithstanding the foregoing, if the acquiring or succeeding corporation
(or an affiliate thereof) does not agree to assume, or substitute for, such
Restricted Stock Unit Awards, then the Board shall, upon written notice to the
Participants, provide that all then unvested Restricted Stock Unit Awards will
vest in full as of a specified time prior to the Reorganization Event. To the
extent all or any portion of a Restricted Stock Unit Award vests solely as a
result of the foregoing sentence, any shares issued as a result thereof shall be
restricted shares subject to vesting and forfeiture. The restrictions and
forfeiture provisions shall lapse in accordance with the same vesting schedule
in effect for the Restricted Stock Unit Award prior to its accelerated
vesting. 

General Provisions Applicable to
Awards. 

     Transferability of Awards. Except as
the Board may otherwise determine or provide in an Award, Awards shall not be
sold, assigned, transferred, pledged or otherwise encumbered by the person to
whom they are granted, either voluntarily or by operation of law, except by will
or the laws of descent and distribution, and, during the life of the
Participant, shall be exercisable only by the Participant. References to a
Participant, to the extent relevant in the context, shall include references to
authorized transferees. 

     Documentation. Each Award shall be
evidenced in such form (written, electronic or otherwise) as the Board shall
determine. Each Award may contain terms and conditions in addition to those set
forth in the Plan. 

     Board
Discretion. Except as otherwise provided by
the Plan, each Award may be made alone or in addition or in relation to any
other Award. The terms of each Award need not be identical, and the Board need
not treat Participants uniformly. 

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

     Withholding. Each Participant shall
pay to the Company, or make provision satisfactory to the Board for payment of,
any taxes required by law to be withheld in connection with Awards to such
Participant no later than the date of the event creating the tax liability. To
the extent the Board provides in an Award, Participants may satisfy such tax
obligations in whole or in part by delivery of shares of Common Stock, including
shares retained from the Award creating the tax obligation, valued at their Fair
Market Value; provided, however, that the total tax withholding where stock is
being used to satisfy such tax obligations cannot exceed the Company’s minimum
statutory withholding obligations (based on minimum statutory withholding rates
for federal and state tax purposes, including payroll taxes, that are applicable
to such supplemental taxable income). The Company may, to the extent permitted
by law, deduct any such tax obligations from any payment of any kind otherwise
due to a Participant. 

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

     Conditions on Delivery of Stock. The
Company will not be obligated to deliver any shares of Common Stock pursuant to
the Plan or to remove restrictions from shares previously delivered under the
Plan until (i) all conditions of the Award have been met or removed to the
satisfaction of the Company, (ii) in the opinion of the Company’s counsel, all
other legal matters in connection with the issuance and delivery of such shares
have been satisfied, including any applicable securities laws and any applicable
stock exchange or stock market rules and regulations, and (iii) the Participant
has executed and delivered to the Company such representations or agreements as
the Company may consider appropriate to satisfy the requirements of any
applicable laws, rules or regulations. 

     Acceleration. The Board may at any
time provide that any Award shall become immediately vested in full or in part,
free of some or all restrictions or conditions, or otherwise realizable in full
or in part, as the case may be. 

Miscellaneous. 

     No
Right To Employment or Other Status. No
person shall have any claim or right to be granted an Award, and the grant of an
Award shall not be construed as giving a Participant the right to continued
employment or any other relationship with the Company. The Company expressly
reserves the right at any time to dismiss or otherwise terminate its
relationship with a Participant free from any liability or claim under the Plan,
except as expressly provided in the applicable Award. 

     No
Rights As Stockholder. Subject to the
provisions of the applicable Award, no Participant or transferee of an Award
shall have any rights as a stockholder with respect to any shares of Common
Stock to be distributed with respect to an Award until becoming the record
holder of such shares.

     Effective Date and Term of Plan. The
Plan became effective on the date on which it was initially adopted by the
Board. No Awards shall be granted under the Plan after the completion of ten
years from the earlier of (i) the date on which the Plan was adopted by the
Board or (ii) the date the Plan was approved by the Company’s stockholders, but
Awards previously granted may extend beyond that date. 

     Amendment of Plan. The Board may
amend, suspend or terminate the Plan or any portion thereof at any time.
However, amendments to the Plan will be subject to stockholder approval to the
extent required under applicable law or regulation or pursuant to the listing
standards of the stock exchange on which the Common Stock is at the time
primarily traded. 

     Governing Law. The provisions of the Plan and all Awards made hereunder shall be governed by and interpreted in accordance with the laws of the State of
Delaware, without regard to any applicable conflicts of law.

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