Document:

Lease between MA-RIVERVIEW/245 FIRST ST. and the Company dated 7/31/03

 EXHIBIT 10.12 
  
 245 FIRST STREET 
 CAMBRIDGE, MASSACHUSETTS 
  
 OFFICE LEASE AGREEMENT 
  
 BETWEEN 
  
 MA-RIVERVIEW/245 FIRST STREET, L.L.C., a Delaware limited liability company

 (“LANDLORD”) 
  
 AND 
  
 BITSTREAM, INC., a Delaware corporation 
 (“TENANT”) 

 OFFICE LEASE AGREEMENT 
  
 THIS OFFICE LEASE AGREEMENT (the “Lease”) is made and entered into as
            , 20    , by and between MA-RIVERVIEW/245 FIRST STREET, L.L.C., a Delaware limited liability company (“Landlord”) and BITSTREAM,
INC., a Delaware corporation (“Tenant”). The following exhibits and attachments are incorporated into and made a part of the Lease: Exhibit A (Outline and Location of Premises), Exhibit B (Expenses and Taxes), Exhibit
C (Work Letter), Exhibit D (Commencement Letter), Exhibit E (Building Rules and Regulations), Exhibit F (Additional Provisions) Exhibit G (Commencement Date Agreement [for recording]) and Exhibit H (Letter of
Credit). 
  
 1. Basic Lease Information. 
  

	1.01	 	“Buildings” shall mean those buildings located at 245 First Street, Cambridge, Massachusetts 02142 and commonly known as Cambridge Science Center and 245 First
Street. “Building” shall mean the Office Tower at 245 First Street. “Rentable Square Footage of the Building” is deemed to be 148,552 square feet. “Rentable Square Footage of the Buildings” is deemed to be
279,064. 

  

	1.02	 	“Premises” shall mean the area shown on Exhibit A to this Lease. The Premises is located on the 17th floor of 245 First Street and known as suite 1700. If the Premises include one or more floors in their entirety, all corridors and restroom facilities located
on such full floor(s) shall be considered part of the Premises. The “Rentable Square Footage of the Premises” is deemed to be 18,035 square feet. Landlord and Tenant stipulate and agree that the Rentable Square Footage of the
Building and the Rentable Square Footage of the Premises are correct. 

  

	1.03	 	“Base Rent”: 

  

	 Months of Term

	 	 Annual Rate
 Per Square Foot

	 	 Monthly
 Base Rent

	 1- 24
	 	$23.50	 	$35,318.54
	 25-48
	 	$25.50	 	$38,324.38
	 49-72
	 	$26.50	 	$39,827.29

  
 Base Rent
Abatement: Notwithstanding anything in this Section of the Lease to the contrary, so long as Tenant is not in Default under this Lease, Tenant shall be entitled to an abatement of Base Rent in the amount of $35,318.54 per month for 6
consecutive full calendar months of the Term, beginning with the 1st full calendar month of the Term (the “Base
Rent Abatement Period”). The total amount of Base Rent abated in accordance with the foregoing shall equal $211,911.25 (the “Abated Base Rent”). If Tenant is in Default at any time during the Base Rent Abatement Period and
fails to cure such Default within any applicable cure period under the Lease, all Abated Base Rent shall immediately become due and payable. The payment by Tenant of the Abated Base Rent in the event of a Default shall not limit or affect any of
Landlord’s other rights, pursuant to this Lease or at law or in equity. Only Base Rent shall be abated pursuant to this Section, and all Additional Rent and other costs and charges 
  

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 specified in this Lease shall remain as due and payable pursuant to the provisions of this Lease.

  

	1.04	 	“Tenant’s Pro Rata Share for the Building”: 12.1405%. 

 “Tenant’s Pro Rata Share for the Buildings”: 6.4627%. 
  

	1.05	 	“Base Year” for Taxes: Fiscal Year (defined below) 2004 (e.g., July 1, 2003 to June 30, 2004); “Base Year” for Expenses (defined in Exhibit
B): calendar year 2004.  

  
 For purposes
hereof, “Fiscal Year” shall mean the Base Year for Taxes and each period of July 1 to June 30 thereafter. 
  

	1.06	 	“Term”: A period of 72 months. Subject to Section 3, the Term shall commence on the date the Landlord Work is Substantially Complete (as defined in Section 3.01)
(the “Commencement Date”) and, unless terminated early in accordance with this Lease, end on the date immediately preceding the 6th annual anniversary of the Commencement Date (the “Termination Date”). (The “Target Commencement Date” is defined in Section 3.01.) In addition, if Tenant is entitled to
register or record a notice or memorandum of this Lease pursuant to the terms of Section 1.18, Landlord and Tenant shall also execute and Tenant may register or record, as appropriate, at Tenant’s cost and expense, a Commencement Date Agreement
in the form attached as Exhibit G. 

  

	1.07	 	“Allowance”: None. 

  

	1.08	 	“Security Deposit”: Initially $250,000.00, as such sum may be adjusted and as more fully described in Section 6. 

  

	1.09	 	“Guarantor”: None. 

  

	1.10	 	“Broker”: Cushman and Wakefield of Massachusetts, Inc. and Richards, Barry, Joyce & Partners, LLC. 

  

	1.11	 	“Permitted Use”: general office use, and for no other purpose. 

  

	1.12	 	“Notice Address(es)”: 

  

	 Landlord:
	  	 Tenant:

		
	 MA-Riverview/245 First Street, L.L.C.
	  	

		
	 c/o Equity Office
	  	

		
	 245 First Street
	  	 
		
	 Cambridge, Massachusetts
	  	

		
	 Attention: Property Manager
	  	

  
 A copy of any notices
to Landlord shall be sent to Equity Office, Two North Riverside Plaza, Suite 2100, Chicago, IL 60606, Attn: Boston Regional Counsel. A copy of any notices to Tenant of option rights, default, or asserting a claim or defense against the Tenant based
upon the subject matter of the notice (as opposed to routine notices concerning the operation of the Building) shall be sent 

  

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to Paul C. Bauer, Kirkpatrick & Lockhart LLP, 75 State Street, Boston, MA 02109. 
  

	1.13	 	“Business Day(s)” are Monday through Friday of each week, exclusive of New Year’s Day, Presidents Day, Memorial Day, Independence Day, Labor Day, Thanksgiving
Day and Christmas Day (“Holidays”). Landlord may designate additional Holidays that are commonly recognized by other office buildings in the area where the Building is located. “Building Service Hours” are 8:00 A.M. to
6:00 P.M. on Business Days and 8:00 A.M. to 1:00 P.M. on Saturdays. 

  

	1.14	 	“Landlord Work” means the work, if any, that Landlord is obligated to perform in the Premises pursuant to a separate agreement (the “Work Letter”),
if any, attached to this Lease as Exhibit C. 

  

	1.15	 	“Property” means the Buildings and the parcel(s) of land on which they are located and, at Landlord’s discretion, any parking facilities and other
improvements, if any, serving the Building or Buildings and the parcel(s) of land on which they are located. 

  

	1.16	 	Notwithstanding anything to the contrary contained in Section 12.01 of the Lease, except with respect to Landlord Work or any Tenant improvements costing less than $50,000.00,
Landlord shall have the right to require Tenant to post a performance or payment bond in connection with any work or service done or purportedly done by or for the benefit of Tenant. Tenant acknowledges and agrees that all such work or service is
being performed for the sole benefit of Tenant and not for the benefit of Landlord. 

  

	1.17	 	The following shall be the last sentence of Section 20 of the Lease: “WITHOUT LIMITING THE FOREGOING, IN NO EVENT SHALL LANDLORD OR ANY MORTGAGEES OR LANDLORD RELATED PARTIES
EVER BE LIABLE FOR ANY CONSEQUENTIAL OR INCIDENTAL DAMAGES OR ANY LOST PROFITS OF TENANT.” 

  

	1.18	 	Tenant shall not record this Lease or any memorandum or notice without Landlord’s prior written consent; provided, however, Landlord agrees to consent to the recordation or
registration of a memorandum or notice of this Lease, at Tenant’s cost and expense (and in a form reasonably satisfactory to Landlord), if the initial term of this Lease or the initial term plus renewal terms granted exceed, in the aggregate, 7
years. If this Lease is terminated before the Term expires, upon Landlord’s request the parties shall execute, deliver and record an instrument acknowledging the above and the date of the termination of this Lease, and Tenant appoints Landlord
its attorney-in-fact in its name and behalf to execute the instrument if Tenant shall fail to execute and deliver the instrument after Landlord’s request therefor within 10 days. 

  
 2. Lease Grant. 
  
 The Premises are hereby leased to Tenant from Landlord, together with the right to use any portions of the Property that are
designated by Landlord for the common use of tenants and others (the “Common Areas”). 
  

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 3. Adjustment of Commencement Date; Possession. 
  
 3.01 If Landlord is required to perform Landlord Work prior to the Commencement Date: (a) the date set forth in Section 1.06
as the Commencement Date shall instead be defined as the “Target Commencement Date”; (b) the actual Commencement Date shall be the date on which the Landlord Work is Substantially Complete (defined below); and (c) the Termination
Date will be the last day of the Term as determined based upon the actual Commencement Date. Landlord shall diligently attempt to Substantially Complete the Landlord Work by the Target Commencement Date but failure to so complete despite such
efforts shall not be a default by Landlord or otherwise render Landlord liable for damages. Promptly after the determination of the Commencement Date, Landlord and Tenant shall enter into a commencement letter agreement in the form attached as
Exhibit D. If the Termination Date does not fall on the last day of a calendar month, Landlord and Tenant may elect to adjust the Termination Date to the last day of the calendar month in which Termination Date occurs by the mutual execution
of a commencement letter agreement setting forth such adjusted date. The Landlord Work shall be deemed to be “Substantially Complete” the later of (i) the date that all Landlord Work has been performed, other than any details of
construction, mechanical adjustment or any other similar matter, the non-completion of which does not materially interfere with Tenant’s use of the Premises, and (ii) the date Landlord receives from the appropriate governmental authority all
approvals necessary for the issuance of a certificate of occupancy with respect to the Landlord Work performed by Landlord or its contractors in the Premises (or would have received such approvals absent any Tenant Delay). If Landlord is delayed in
the performance of the Landlord Work as a result of the acts or omissions of Tenant, the Tenant Related Parties (defined in Section 13) or their respective contractors or vendors, including, without limitation, changes requested by Tenant to
approved plans, Tenant’s failure to comply with any of its obligations under this Lease, or the specification of any non-standard materials or equipment with long lead times (a “Tenant Delay”), the Landlord Work shall be deemed
to be Substantially Complete on the date that Landlord could reasonably have been expected to Substantially Complete the Landlord Work absent any Tenant Delay. 
  

3.02 Subject to Landlord’s obligation, if any, to perform Landlord Work, the Premises are accepted by Tenant in “as is” condition and
configuration without any representations or warranties by Landlord. By taking possession of the Premises, Tenant agrees that the Premises are in good order and satisfactory condition. Landlord shall not be liable for a failure to deliver possession
of the Premises or any other space due to the holdover or unlawful possession of such space by another party, however Landlord shall use reasonable efforts to obtain possession of the space. The commencement date for the space, in such event, shall
be postponed until the date Landlord delivers possession of the Premises to Tenant free from occupancy by any party. If Tenant takes possession of the Premises before the Commencement Date, such possession shall be subject to the terms and
conditions of this Lease and Tenant shall pay Rent (defined in Section 4.01) to Landlord for each day of possession before the Commencement Date. Tenant, however, shall not be required to pay Rent for any days of possession before the Commencement
Date during which Tenant, with the approval of Landlord, is in possession of the Premises for the sole purpose of performing improvements or installing furniture, equipment or other personal property. Notwithstanding the foregoing, if there has been
no Tenant Delay and the Commencement Date does not 

  

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occur by October 1, 2003 (the “Outside Completion Date”), Tenant, as its sole remedy, shall provide Landlord with written notice that if the
Commencement Date does not occur by November 1, 2003 Tenant shall terminate this Lease. In such event, if the Commencement Date does not occur by November 1, 2003, this Lease shall be deemed null and void and of no further force and effect and
Landlord shall promptly refund any Security Deposit previously advanced by Tenant under this Lease and, so long as Tenant has not previously been declared in Default under any of its obligations under the Work Letter, the parties hereto shall have
no further responsibilities or obligations to each other with respect to this Lease. Landlord and Tenant acknowledge and agree that: (i) the determination of the Commencement Date shall take into consideration the effect of any Tenant Delay; and
(ii) the Outside Completion Date shall be postponed by the number of days the Commencement Date is delayed due to events of Force Majeure. Notwithstanding anything herein to the contrary, if Landlord reasonably determines despite diligent efforts
that it will be unable to cause the Commencement Date to occur by the Outside Completion Date, Landlord shall have the right to immediately cease its performance of the Landlord Work and provide Tenant with written notice (the “Outside
Extension Notice”) of such inability, which Outside Extension Notice shall set forth the date on which Landlord reasonably believes that the Commencement Date will occur. Upon receipt of the Outside Extension Notice, Tenant shall have the right
to terminate this Lease by providing written notice of termination to Landlord within 5 Business Days after the date of the Outside Extension Notice. In the event that Tenant does not terminate this Lease within such 5 Business Day period, the
Outside Completion Date shall automatically be amended to be the date set forth in Landlord’s Outside Extension Notice. 
  
 4. Rent. 
  

	 	4.01	 	Tenant shall pay Landlord, without any setoff or deduction, unless expressly set forth in this Lease, all Base Rent and Additional Rent due for the Term (collectively referred to as
“Rent”). “Additional Rent” means all sums (exclusive of Base Rent) that Tenant is required to pay Landlord under this Lease. Tenant shall pay and be liable for all rental, sales and use taxes (but excluding income
taxes), if any, imposed upon or measured by Rent. Base Rent and recurring monthly charges of Additional Rent shall be due and payable in advance on the first day of each calendar month without notice or demand. All other items of Rent shall be due
and payable by Tenant on or before 30 days after billing by Landlord. Rent shall be made payable to the entity, and sent to the address, Landlord designates and shall be made by good and sufficient check or by other means acceptable to Landlord.
Tenant shall pay Landlord an administration fee equal to 5% of all past due Rent, provided that Tenant shall be entitled to a grace period of 5 days for the first 2 late payments of Rent in a calendar year. In addition, past due Rent shall accrue
interest at the Prime Rate (defined herein) plus 4% per annum. For purposes hereof, the “Prime Rate” shall be the per annum interest rate publicly announced as its prime or base rate by a federally insured bank selected by Landlord in the
state in which the Building is located. Forbearance by Landlord to enforce one or more remedies shall not constitute a waiver of any Default. Landlord’s acceptance of less than the correct amount of Rent shall be considered a payment on account
of the earliest Rent due. Rent for any partial month during the Term shall be prorated. No endorsement or statement on a check or letter accompanying payment shall be considered an accord and satisfaction. Tenant’s covenant to pay Rent is
independent of every other covenant in this Lease. 

  
 4.02 Tenant shall pay Tenant’s Pro Rata Share of Taxes and Expenses in accordance with Exhibit B of this Lease. 
  

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 5. Compliance with Laws; Use. 
  
 The Premises shall be used for the Permitted Use and for no other use whatsoever. Tenant shall comply with all statutes,
codes, ordinances, orders, rules and regulations of any municipal or governmental entity whether in effect now or later, including the Americans with Disabilities Act (“Law(s)”), regarding the operation of Tenant’s business and
the use, condition, configuration and occupancy of the Premises. In addition, Tenant shall, at its sole cost and expense, promptly comply with any Laws that relate to the “Base Building” (defined below), but only to the extent such
obligations are triggered by Tenant’s use of the Premises, other than for general office use, or Alterations or improvements in the Premises performed or requested by Tenant. As of the date hereof, Landlord has not received notice from any
governmental agencies that the Building is in violation of Title III of the Americans with Disabilities Act. “Base Building” shall include the structural portions of the Building, the public restrooms and the Building
mechanical, electrical and plumbing systems and equipment located in the internal core of the Building on the floor or floors on which the Premises are located. Nothing herein shall require Tenant to perform any alterations, additions or
improvements which are necessary to comply with Laws with respect to the Common Areas, unless such compliance relates to the Common Areas on any floor on which the Premises are located and arises directly out of the performance of work by or on
behalf of Tenant in the Premises or Tenant’s use of the Premises for purposes other than general office use. In addition, nothing herein shall require Tenant, with respect to the Common Areas or the Premises, to comply with Laws which require
structural alterations, capital improvements or the installation of new or additional mechanical, electrical, plumbing or fire/life safety systems on a Building-wide basis without reference to the particular use of Tenant. Landlord will, at
Landlord’s expense (except to the extent properly included in Expenses), perform all acts required to comply with such Laws with respect to the foregoing as the same affect the Premises and the Building. In addition, Landlord, at
Landlord’s expense (except to the extent properly included in Expenses), shall be responsible for complying with Title III of the Americans with Disabilities Act (ADA) with respect to the Common Areas of the Building (including any Common Area
corridors) and the Landlord Work. Notwithstanding the foregoing, Landlord shall have the right to contest any alleged violation of the ADA or other Laws in good faith, including, without limitation, the right to apply for and obtain a waiver or
deferment of compliance, the right to assert any and all defenses allowed by Law and the right to appeal any decisions, judgments or rulings to the fullest extent permitted by Law. Landlord, after the exhaustion of any and all rights to appeal or
contest, will make all repairs, additions, alterations or improvements necessary to comply with the terms of any final order or judgment, provided that if Landlord elects not to contest any alleged violation, Landlord will promptly make necessary
all repairs, additions, alterations or improvements. Tenant shall promptly provide Landlord with copies of any notices it receives regarding an alleged violation of Law. Tenant shall comply with the rules and regulations of the Building attached as
Exhibit E and such other reasonable rules and regulations adopted by Landlord from time to time, including rules and regulations for the performance of Alterations (defined in Section 9). 
  
 6. Security Deposit. 
  
 6.01 The Security Deposit shall be delivered to Landlord upon the execution of this Lease by Tenant and held by Landlord
without liability for interest (unless required by Law) as security for the performance of Tenant’s obligations. The Security Deposit is not an advance payment of Rent or a measure of damages. Landlord may use all or a portion of the Security
Deposit to satisfy past due Rent or to cure any Default (defined in Section 18) by Tenant. If Landlord uses any portion of the Security Deposit, Tenant shall, within 5 days after demand, restore the 

  

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Security Deposit to its original amount. Landlord shall return any unapplied portion of the Security Deposit to Tenant within 30 days after the later to
occur of the Termination Date or the date Tenant surrenders the Premises to Landlord in compliance with Section 25. Landlord shall assign the Security Deposit to a successor or transferee and, following the assignment, Landlord shall have no further
liability for the return of the Security Deposit. Landlord shall not be required to keep the Security Deposit separate from its other accounts. 
  
 6.02 All of the Security Deposit shall be in the form of an irrevocable letter of credit (the “Letter of Credit”), which Letter of Credit
shall: (a) be in the amount of $250,000.00; (b) be issued on the form attached hereto as Exhibit H; (c) name Landlord as its beneficiary; and (d) be drawn on an FDIC insured financial institution reasonably satisfactory to the Landlord.
Notwithstanding anything herein to the contrary, provided Tenant is not in Default under this Lease as of the effective date of any reduction of the Security Deposit, Tenant shall have the right to reduce the amount of the Security Deposit to be as
follows: (i) $200,000.00 effective as of the second annual anniversary of the Commencement Date; and (ii) $150,000.00 effective as of the fourth annual anniversary of the Commencement Date. Such reduction shall be accomplished by having Tenant
provide Landlord with a substitute Letter of Credit in the reduced amount. The Letter of Credit (and any renewals or replacements thereof) shall be for a term of not less than 1 year. Tenant agrees that it shall from time to time, as necessary,
whether as a result of a draw on the Letter of Credit by Landlord pursuant to the terms hereof or as a result of the expiration of the Letter of Credit then in effect, renew or replace the original and any subsequent Letter of Credit so that a
Letter of Credit, in the amount required hereunder, is in effect until a date which is at least 60 days after the Termination Date of the Lease. If Tenant fails to furnish such renewal or replacement at least 60 days prior to the stated expiration
date of the Letter of Credit then held by Landlord, Landlord may draw upon such Letter of Credit and hold the proceeds thereof (and such proceeds need not be segregated) as a Security Deposit pursuant to the terms of this Section 6. Any renewal or
replacement of the original or any subsequent Letter of Credit shall meet the requirements for the original Letter of Credit as set forth above, except that such replacement or renewal shall be issued by an FDIC insured financial institution
reasonably satisfactory to the Landlord at the time of the issuance thereof. 
  
 6.03 If Landlord draws on the Letter of Credit as permitted in this Lease or the Letter of Credit, then, upon demand of Landlord, Tenant shall restore the amount available under the Letter of Credit to its original
amount by providing Landlord with an amendment to the Letter of Credit evidencing that the amount available under the Letter of Credit has been restored to its original amount. In the alternative, Tenant may provide Landlord with cash, to be held by
Landlord in accordance with this Article, equal to the restoration amount required under the Letter of Credit. 
  
 7. Building Services. 
  
 7.01 Landlord shall furnish Tenant with the following services: (a) water for use in the Base Building lavatories; (b) customary heat and air conditioning in season during Building Service Hours. Tenant shall have the right to receive HVAC
service during hours other than Building Service Hours by paying Landlord’s then standard charge for additional HVAC service and providing such prior notice as is reasonably specified by Landlord; (c) standard janitorial service on Business
Days; (d) Elevator service; (e) Electricity in accordance with the terms and conditions in Section 7.02; and (f) such other services as Landlord reasonably determines are necessary or appropriate for the Property. 
  

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 7.02 Electricity used by Tenant in the Premises shall be paid for by Tenant by a separate charge off a
separate meter of the Premises payable by Tenant directly to the electric utility. Without the consent of Landlord, Tenant’s use of electrical service shall not exceed, either in voltage, rated capacity, use beyond Building Service Hours or
overall load, that which Landlord reasonably deems to be standard for the Building. Landlord shall have the right to measure electrical usage by commonly accepted methods. If it is determined that Tenant is using excess electricity, Tenant shall pay
Landlord for the cost of such excess electrical usage as Additional Rent. 
  
 7.03 Landlord’s failure to furnish, or any interruption, diminishment or termination of services due to the application of Laws, the failure of any equipment, the performance of repairs, improvements or
alterations, utility interruptions or the occurrence of an event of Force Majeure (defined in Section 26.03) (collectively a “Service Failure”) shall not render Landlord liable to Tenant, constitute a constructive eviction of
Tenant, give rise to an abatement of Rent, nor relieve Tenant from the obligation to fulfill any covenant or agreement. However, if the Premises, or a material portion of the Premises, are made untenantable for a period in excess of 3 consecutive
Business Days as a result of a Service Failure that is reasonably within the control of Landlord to correct, then Tenant, as its sole remedy, shall be entitled to receive an abatement of Rent payable hereunder during the period beginning on the
4th consecutive Business Day of the Service Failure and ending on the day the service has been restored. If the
entire Premises have not been rendered untenantable by the Service Failure, the amount of abatement shall be equitably prorated. 
  
 8. Leasehold Improvements. 
  
 All improvements in and to the Premises, including any Alterations (collectively, “Leasehold Improvements”) shall remain upon the
Premises at the end of the Term without compensation to Tenant. Landlord, however, by written notice to Tenant at least 30 days prior to the Termination Date, may require Tenant, at its expense, to remove (a) any Cable (defined in Section 9.01)
installed by or for the benefit of Tenant, and (b) any Landlord Work or Alterations that, in Landlord’s reasonable judgment, are of a nature that would require removal and repair costs that are materially in excess of the removal and repair
costs associated with standard office improvements (collectively referred to as “Required Removables”). Required Removables shall include, without limitation, internal stairways, raised floors, personal baths and showers, vaults,
rolling file systems and structural alterations and modifications. The designated Required Removables shall be removed by Tenant before the Termination Date. Notwithstanding the foregoing, Tenant shall not be required to remove any portion of the
Landlord Work shown on the Plans as of the date of this Lease. Tenant shall repair damage caused by the installation or removal of Required Removables. If Tenant fails to perform its obligations in a timely manner, Landlord may perform such work at
Tenant’s expense. Tenant, at the time it requests approval for a proposed Alteration, may request in writing that Landlord advise Tenant whether the Alteration or any portion of the Alteration is a Required Removable. Within 10 days after
receipt of Tenant’s request, Landlord shall advise Tenant in writing as to which portions of the Alteration are Required Removables. 
  
 9. Repairs and Alterations. 
  
 9.01 Tenant shall promptly provide Landlord with notice of any conditions of which it has actual knowledge that are dangerous or in need of maintenance or
repair. Tenant shall promptly provide Landlord with notice of any such conditions. Tenant shall, at its sole cost and 

  

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expense, perform all maintenance and repairs to the Premises that are not Landlord’s express responsibility under this Lease, and keep the Premises in
good condition and repair, reasonable wear and tear excepted. Tenant’s repair and maintenance obligations include, without limitation, repairs to: (a) floor covering; (b) interior partitions; (c) doors; (d) the interior side of demising walls;
(e) electronic, phone and data cabling and related equipment that is installed by or for the exclusive benefit of Tenant (collectively, “Cable”); (f) supplemental air conditioning units, kitchens, including hot water heaters,
plumbing, and similar facilities exclusively serving Tenant; and (g) Alterations. To the extent Landlord is not reimbursed by insurance proceeds. Tenant shall reimburse Landlord for the cost of repairing damage to the Building caused by the acts of
Tenant, Tenant Related Parties and their respective contractors and vendors, ordinary wear and tear excepted. If Tenant fails to make any repairs to the Premises for more than 15 days after notice from Landlord (although notice shall not be required
in an emergency), Landlord may make the repairs, and Tenant shall pay the reasonable cost of the repairs, together with an administrative charge in an amount equal to 5% of the cost of the repairs. 
  
 9.02 Landlord shall keep and maintain in good repair and working order and
perform maintenance upon the: (a) structural elements of the Building; (b) mechanical (including HVAC), electrical, plumbing and fire/life safety systems serving the Building in general; (c) Common Areas; (d) roof of the Building; (e) exterior
windows of the Building; and (f) elevators serving the Building. Landlord shall promptly make repairs for which Landlord is responsible. 
  
 9.03 Tenant shall not make alterations, repairs, additions or improvements or install any Cable (collectively referred to as
“Alterations”) without first obtaining the written consent of Landlord in each instance, which consent shall not be unreasonably withheld or delayed. However, Landlord’s consent shall not be required for any Alteration that
satisfies all of the following criteria (a “Cosmetic Alteration”): (a) is of a cosmetic nature such as painting, wallpapering, hanging pictures and installing carpeting; (b) is not visible from the exterior of the Premises or
Building; (c) will not affect the Base Building; and (d) does not require work to be performed inside the walls or above the ceiling of the Premises. Cosmetic Alterations shall be subject to all the other provisions of this Section 9.03. Prior to
starting work, Tenant shall furnish Landlord with plans and specifications; names of contractors reasonably acceptable to Landlord (provided that Landlord may designate specific contractors with respect to Base Building); required permits and
approvals; evidence of contractor’s and subcontractor’s insurance in amounts reasonably required by Landlord and naming Landlord as an additional insured; and any security for performance in amounts reasonably required by Landlord. Changes
to the plans and specifications must also be submitted to Landlord for its approval. Alterations shall be constructed in a good and workmanlike manner using materials of a quality reasonably approved by Landlord. Tenant shall reimburse Landlord for
any sums paid by Landlord for third party examination of Tenant’s plans for non-Cosmetic Alterations. In addition, Tenant shall pay Landlord a fee for Landlord’s oversight and coordination of any non-Cosmetic Alterations equal to 5% of the
cost of the Alterations. Upon completion, Tenant shall furnish “as-built” plans for non-Cosmetic Alterations, completion affidavits and full and final waivers of lien. Landlord’s approval of an Alteration shall not be deemed a
representation by Landlord that the Alteration complies with Law. 
  
 10. Entry
by Landlord. 
  
 Landlord may enter the Premises to inspect,
show or clean the Premises (provided that Landlord shall only show the Premises during the last 12 months of the Term or during an uncured Default by Tenant) or to perform or facilitate the performance of repairs, alterations or 

  

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additions to the Premises or any portion of the Building. Except in emergencies or to provide Building services, Landlord shall provide Tenant with
reasonable prior verbal notice of entry and shall use reasonable efforts to minimize any interference with Tenant’s use of the Premises. If reasonably necessary, Landlord may temporarily close all or a portion of the Premises to perform
repairs, alterations and additions. However, except in emergencies, Landlord will not close the Premises if the work can reasonably be completed on weekends and after Building Service Hours. Entry by Landlord shall not constitute a constructive
eviction or entitle Tenant to an abatement or reduction of Rent. 
  
 11.
Assignment and Subletting. 
  
 11.01 Except in connection
with a Permitted Transfer (defined in Section 11.04), Tenant shall not assign, sublease, transfer or encumber any interest in this Lease or allow any third party to use any portion of the Premises (collectively or individually, a
“Transfer”) without the prior written consent of Landlord, which consent shall not be unreasonably withheld, conditioned or delayed if Landlord does not exercise its recapture rights under Section 11.02. If the entity which controls
the voting shares/rights of Tenant changes at any time, such change of ownership or control shall constitute a Transfer unless Tenant is an entity whose outstanding stock is listed on a recognized securities exchange or if at least 80% of its voting
stock is owned by another entity, the voting stock of which is so listed. Any attempted Transfer in violation of this Section is voidable by Landlord. In no event shall any Transfer, including a Permitted Transfer, release or relieve Tenant from any
obligation under this Lease. 
  
 11.02 Tenant shall provide
Landlord with financial statements for the proposed transferee, a fully executed copy of the proposed assignment, sublease or other Transfer documentation and such other information as Landlord may reasonably request. Within 15 Business Days after
receipt of the required information and documentation, Landlord shall either: (a) consent to the Transfer by execution of a consent agreement in a form reasonably designated by Landlord; (b) reasonably refuse to consent to the Transfer in writing;
or (c) in the event of an assignment of this Lease or subletting of more than 20% of the Rentable Area of the Premises for more than 50% of the remaining Term (excluding unexercised options), recapture the portion of the Premises that Tenant is
proposing to Transfer. If Landlord exercises its right to recapture, this Lease shall automatically be amended (or terminated if the entire Premises is being assigned or sublet) to delete the applicable portion of the Premises effective on the
proposed effective date of the Transfer. Tenant shall pay Landlord a review fee of $1,500.00 for Landlord’s review of any Permitted Transfer or requested Transfer. 
  
 11.03 Tenant shall pay Landlord 50% of all rent and other consideration which Tenant receives as a result of a Transfer that
is in excess of the Rent payable to Landlord for the portion of the Premises and Term covered by the Transfer. Tenant shall pay Landlord for Landlord’s share of the excess within 30 days after Tenant’s receipt of the excess. Tenant may
deduct from the excess, on a straight-line basis, all reasonable and customary expenses directly incurred by Tenant attributable to the Transfer, including, but not limited to reasonable broker commissions, reasonable rent concessions, reasonable
and customary alterations, and reasonable legal expenses. If Tenant is in Default, Landlord may require that all sublease payments be made directly to Landlord, in which case Tenant shall receive a credit against Rent in the amount of Tenant’s
share of payments received by Landlord. 
  
 11.04 Tenant may
assign this Lease to a successor to Tenant by purchase, merger, consolidation or reorganization (an “Ownership Change”) or assign this Lease or sublet all or a 

  

 10 

 
portion of the Premises to an Affiliate without the consent of Landlord, provided that all of the following conditions are satisfied (a “Permitted
Transfer”): (a) Tenant is not in Default; (b) in the event of an Ownership Change, Tenant’s successor shall own substantially all of the assets of Tenant and have a net worth which is at least equal to Tenant’s net worth as of the
day prior to the proposed Ownership Change; (c) the Permitted Use does not allow the Premises to be used for retail purposes; and (d) Tenant shall give Landlord written notice at least 15 Business Days prior to the effective date of the Permitted
Transfer. Tenant’s notice to Landlord shall include information and documentation evidencing the Permitted Transfer and showing that each of the above conditions has been satisfied. If requested by Landlord, Tenant’s successor shall sign a
commercially reasonable form of assumption agreement. “Affiliate” shall mean an entity controlled by, controlling or under common control with Tenant. 
  
 12. Liens. 
  
 Tenant shall not permit mechanics’ or other liens to be placed upon the Property, Premises or Tenant’s leasehold interest in connection with any
work or service done or purportedly done by or for the benefit of Tenant or its transferees. Tenant shall give Landlord notice at least 15 days prior to the commencement of any work in the Premises to afford Landlord the opportunity, where
applicable, to post and record notices of non-responsibility. Tenant, within 10 days of notice from Landlord, shall fully discharge any lien by settlement, by bonding or by insuring over the lien in the manner prescribed by the applicable lien Law.
If Tenant fails to do so, Landlord may bond, insure over or otherwise discharge the lien. Tenant shall reimburse Landlord for any amount paid by Landlord, including, without limitation, reasonable attorneys’ fees. 
  
 13. Indemnity and Waiver of Claims. 
  
 Tenant hereby waives all claims against and releases Landlord and its
trustees, members, principals, beneficiaries, partners, officers, directors, employees, Mortgagees (defined in Section 23) and agents (the “Landlord Related Parties”) from all claims for any injury to or death of persons, damage to
property or business loss in any manner related to (a) Force Majeure, (b) acts of third parties not acting by, through or under Landlord, (c) the bursting or leaking of any tank, water closet, drain or other pipe, (d) the inadequacy or failure of
any security services, personnel or equipment, or (e) any matter not within the reasonable control of Landlord. Except to the extent caused by the negligence or willful misconduct of Landlord or any Landlord Related Parties, Tenant shall indemnify,
defend and hold Landlord and Landlord Related Parties harmless against and from all liabilities, obligations, damages, penalties, claims, actions, costs, charges and expenses, including, without limitation, reasonable attorneys’ fees and other
professional fees (if and to the extent permitted by Law) (collectively referred to as “Losses”), which may be imposed upon, incurred by or asserted against Landlord or any of the Landlord Related Parties by any third party and
arising out of or in connection with any damage or injury occurring in the Premises or any acts or omissions (including violations of Law) of Tenant, the Tenant Related Parties or any of Tenant’s transferees, contractors or licensees. Except to
the extent caused by the negligence or willful misconduct of Tenant or any Tenant Related Parties, Landlord shall indemnify, defend and hold Tenant, its trustees, members, principals, beneficiaries, partners, officers, directors, employees and
agents (“Tenant Related Parties”) harmless against and from all Losses which may be imposed upon, incurred by or asserted against Tenant or any of the Tenant Related Parties by any third party and arising out of or in connection
with the acts or omissions (including violations of Law) of Landlord or the Landlord Related Parties. 
  

 11 

 14. Insurance. 
  
 Tenant shall maintain the following insurance (“Tenant’s Insurance”): (a) Commercial General Liability Insurance applicable to the
Premises and its appurtenances providing, on an occurrence basis, an each occurrence limit of $1,000,000.00 and an aggregate limit of $2,000,000.00; (b) Property/Business Interruption Insurance written on an All Risk or Special Perils form, with
coverage for broad form water damage including earthquake sprinkler leakage, at replacement cost value and with a replacement cost endorsement covering all of Tenant’s business and trade fixtures, equipment, movable partitions, furniture,
merchandise and other personal property within the Premises (“Tenant’s Property”) and any Leasehold Improvements performed by or for the benefit of Tenant; (c) Workers’ Compensation Insurance in amounts required by Law;
and (d) Employers Liability Coverage of at least $500,000.00 per occurrence. Any company writing Tenant’s Insurance shall have an A.M. Best rating of not less than A-VIII. All Commercial General Liability Insurance policies shall name as
additional insureds Landlord (or its successors and assignees), the managing agent for the Building (or any successor), EOP Operating Limited Partnership, Equity Office Properties Trust and their respective members, principals, beneficiaries,
partners, officers, directors, employees, and agents, and other designees of Landlord and its successors as the interest of such designees shall appear. All policies of Tenant’s Insurance shall contain endorsements that the insurer(s) shall
give Landlord and its designees at least 30 days’ (10 days’ for nonpayment of premium) advance written notice of any cancellation, termination, material change or lapse of insurance. Tenant shall provide Landlord with a certificate of
insurance evidencing Tenant’s Insurance prior to the earlier to occur of the Commencement Date or the date Tenant is provided with possession of the Premises, and thereafter as necessary to assure that Landlord always has current certificates
evidencing Tenant’s Insurance. So long as the same is available at commercially reasonable rates, Landlord shall maintain so called All Risk property insurance on the Building at replacement cost value as reasonably estimated by Landlord.

  
 15. Subrogation. 
  
 Landlord and Tenant hereby waive and shall cause their respective insurance
carriers to waive any and all rights of recovery, claims, actions or causes of action against the other for any loss or damage with respect to Tenant’s Property, Leasehold Improvements, the Building, the Premises, or any contents thereof,
including rights, claims, actions and causes of action based on negligence, which loss or damage is (or would have been, had the insurance required by this Lease been carried) covered by insurance. 
  
 16. Casualty Damage. 
  
 16.01 If all or any portion of the Premises becomes untenantable by fire or other casualty to the Premises (collectively a
“Casualty”), Landlord, with reasonable promptness, shall cause a general contractor selected by Landlord to provide Landlord and Tenant with a written estimate of the amount of time required using standard working methods to
Substantially Complete the repair and restoration of the Premises and any Common Areas necessary to provide access to the Premises (“Completion Estimate”). If the Completion Estimate indicates that the Premises or any Common Areas
necessary to provide access to the Premises cannot be made tenantable within 270 days from the date the repair is started, then either party shall have the right to terminate this Lease upon written notice to the other within 10 days after receipt
of the Completion Estimate. Tenant, however, shall not have the right to terminate this Lease if the Casualty was caused by the negligence or intentional misconduct of Tenant or any Tenant 

  

 12 

 
Related Parties. In addition, Landlord, by notice to Tenant within 90 days after the date of the Casualty, shall have the right to terminate this Lease if:
(1) the Premises have been materially damaged and there is less than 2 years of the Term remaining on the date of the Casualty; (2) any Mortgagee requires that the insurance proceeds be applied to the payment of the mortgage debt; or (3) a material
uninsured loss to the Building occurs. 
  
 16.02 If this Lease is
not terminated, Landlord shall promptly and diligently, subject to reasonable delays for insurance adjustment or other matters beyond Landlord’s reasonable control, restore the Premises and Common Areas. Such restoration shall be to
substantially the same condition that existed prior to the Casualty, except for modifications required by Law or any other modifications to the Common Areas deemed desirable by Landlord. Upon notice from Landlord, Tenant shall assign to Landlord (or
to any party designated by Landlord) all property insurance proceeds payable to Tenant under Tenant’s Insurance with respect to any Leasehold Improvements performed by or for the benefit of Tenant; provided if the estimated cost to repair such
Leasehold Improvements exceeds the amount of insurance proceeds received by Landlord from Tenant’s insurance carrier, the excess cost of such repairs shall be paid by Tenant to Landlord prior to Landlord’s commencement of repairs. Within
15 days of demand, Tenant shall also pay Landlord for any additional excess costs that are determined during the performance of the repairs. Landlord shall not be liable for any inconvenience to Tenant, or injury to Tenant’s business resulting
in any way from the Casualty or the repair thereof. Provided that Tenant is not in Default, during any period of time that all or a material portion of the Premises is rendered untenantable as a result of a Casualty, the Rent shall abate for the
portion of the Premises that is untenantable and not used by Tenant. 
  
 17.
Condemnation. 
  
 Either party may terminate this Lease if
any material part of the Premises is taken or condemned for any public or quasi-public use under Law, by eminent domain or private purchase in lieu thereof (a “Taking”). Landlord shall also have the right to terminate this Lease if
there is a Taking of any portion of the Building or Property which would have a material adverse effect on Landlord’s ability to profitably operate the remainder of the Building. The terminating party shall provide written notice of termination
to the other party within 45 days after it first receives notice of the Taking. The termination shall be effective on the date the physical taking occurs. If this Lease is not terminated, Base Rent and Tenant’s Pro Rata Share shall be
appropriately adjusted to account for any reduction in the square footage of the Building or Premises. All compensation awarded for a Taking shall be the property of Landlord. The right to receive compensation or proceeds are expressly waived by
Tenant, however, Tenant may file a separate claim for Tenant’s Property and Tenant’s reasonable relocation expenses, provided the filing of the claim does not diminish the amount of Landlord’s award. If only a part of the Premises is
subject to a Taking and this Lease is not terminated, Landlord, with reasonable diligence, will restore the remaining portion of the Premises as nearly as practicable to the condition immediately prior to the Taking. 
  
 18. Events of Default. 
  
 Each of the following occurrences shall be a “Default”: (a) Tenant’s failure to pay any portion of
Rent when due, if the failure continues for 5 days after written notice to Tenant (“Monetary Default”); (b) Tenant’s failure (other than a Monetary Default) to comply with any term, provision, condition or covenant of this
Lease, if the failure is not cured within 20 Business Days after written notice to Tenant provided, however, if Tenant’s failure to comply cannot 

  

 13 

 
reasonably be cured within 20 Business Days, Tenant shall be allowed additional time (not to exceed 60 days) as is reasonably necessary to cure the failure
so long as Tenant begins the cure within 20 Business Days and diligently pursues the cure to completion; (c) Tenant or any Guarantor becomes insolvent, makes a transfer in fraud of creditors, makes an assignment for the benefit of creditors, admits
in writing its inability to pay its debts when due or forfeits or loses its right to conduct business; (d) the leasehold estate is taken by process or operation of Law; (e) in the case of any ground floor or retail Tenant, Tenant does not take
possession of or abandons or vacates all or any portion of the Premises; or (f) Tenant is in default beyond any notice and cure period under any other lease or agreement with Landlord at the Building or Property. If Landlord provides Tenant with
notice of Tenant’s failure to comply with any specific provision of this Lease on 3 separate occasions during any 12 month period, Tenant’s subsequent violation of such provision shall, at Landlord’s option, be an incurable Default by
Tenant. All notices sent under this Section shall be in satisfaction of, and not in addition to, notice required by Law. 
  
 19. Remedies. 
  
 19.01 Upon Default, Landlord shall have the right to pursue any one or more of the following remedies: 
  
 (a) Terminate this Lease, in which case Tenant shall immediately surrender
the Premises to Landlord. If Tenant fails to surrender the Premises, Landlord, in compliance with Law, may enter upon and take possession of the Premises and remove Tenant, Tenant’s Property and any party occupying the Premises. Tenant shall
pay Landlord, on demand, all past due Rent and other losses and damages Landlord suffers as a result of Tenant’s Default, including, without limitation, all Costs of Reletting (defined below) and any deficiency that may arise from reletting or
the failure to relet the Premises. “Costs of Reletting” shall include all reasonable costs and expenses incurred by Landlord in reletting or attempting to relet the Premises, including, without limitation, legal fees, brokerage
commissions, the cost of alterations and the value of other concessions or allowances granted to a new tenant. 
  
 (b) Terminate Tenant’s right to possession of the Premises and, in compliance with Law, remove Tenant, Tenant’s Property and any parties
occupying the Premises. Landlord may (but shall not be obligated to) relet all or any part of the Premises, without notice to Tenant, for such period of time and on such terms and conditions (which may include concessions, free rent and work
allowances) as Landlord in its absolute discretion shall determine. Landlord may collect and receive all rents and other income from the reletting. Tenant shall pay Landlord on demand all past due Rent, all Costs of Reletting and any deficiency
arising from the reletting or failure to relet the Premises. The re-entry or taking of possession of the Premises shall not be construed as an election by Landlord to terminate this Lease. 
  
 19.02 In lieu of calculating damages under Section 19.01, Landlord may elect
to receive as damages the sum of (a) all Rent accrued through the date of termination of this Lease or Tenant’s right to possession, and (b) an amount equal to the total Rent that Tenant would have been required to pay for the remainder of the
Term discounted to present value, minus the then present fair rental value of the Premises for the remainder of the Term, similarly discounted, after deducting all anticipated Costs of Reletting. If Tenant is in Default of any of its non-monetary
obligations under the Lease, Landlord shall have the right to perform such obligations. Tenant shall reimburse Landlord for the cost of such performance upon demand together with an administrative charge equal to 10% of the cost of the work
performed by Landlord. The 

  

 14 

 
repossession or re-entering of all or any part of the Premises shall not relieve Tenant of its liabilities and obligations under this Lease. No right or
remedy of Landlord shall be exclusive of any other right or remedy. Each right and remedy shall be cumulative and in addition to any other right and remedy now or subsequently available to Landlord at Law or in equity. 
  
 20. Limitation of Liability. 
  
 NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS LEASE, THE
LIABILITY OF LANDLORD (AND OF ANY SUCCESSOR LANDLORD) SHALL BE LIMITED TO THE LESSER OF (A) THE INTEREST OF LANDLORD IN THE PROPERTY, OR (B) THE EQUITY INTEREST LANDLORD WOULD HAVE IN THE PROPERTY IF THE PROPERTY WERE ENCUMBERED BY THIRD PARTY DEBT
IN AN AMOUNT EQUAL TO 70% OF THE VALUE OF THE PROPERTY. TENANT SHALL LOOK SOLELY TO LANDLORD’S INTEREST IN THE PROPERTY FOR THE RECOVERY OF ANY JUDGMENT OR AWARD AGAINST LANDLORD OR ANY LANDLORD RELATED PARTY. NEITHER LANDLORD NOR ANY LANDLORD
RELATED PARTY SHALL BE PERSONALLY LIABLE FOR ANY JUDGMENT OR DEFICIENCY, AND IN NO EVENT SHALL LANDLORD OR ANY LANDLORD RELATED PARTY BE LIABLE TO TENANT FOR ANY LOST PROFIT, DAMAGE TO OR LOSS OF BUSINESS OR ANY FORM OF SPECIAL, INDIRECT OR
CONSEQUENTIAL DAMAGE. BEFORE FILING SUIT FOR AN ALLEGED DEFAULT BY LANDLORD, TENANT SHALL GIVE LANDLORD AND THE MORTGAGEE(S) WHOM TENANT HAS BEEN NOTIFIED HOLD MORTGAGES (DEFINED IN SECTION 23 BELOW), NOTICE AND REASONABLE TIME TO CURE THE ALLEGED
DEFAULT. 
  
 21. Relocation. 
  
 INTENTIONALLY OMITTED. 
  
 22. Holding Over. 
  
 If Tenant fails to surrender all or any part of the Premises at the termination of this Lease, occupancy of the Premises
after termination shall be that of a tenancy at sufferance. Tenant’s occupancy shall be subject to all the terms and provisions of this Lease, and Tenant shall pay an amount (on a per month basis without reduction for partial months during the
holdover) equal to 150% of the sum of the Base Rent and Additional Rent due for the period immediately preceding the holdover. No holdover by Tenant or payment by Tenant after the termination of this Lease shall be construed to extend the Term or
prevent Landlord from immediate recovery of possession of the Premises by summary proceedings or otherwise. If Landlord is unable to deliver possession of the Premises to a new tenant or to perform improvements for a new tenant as a result of
Tenant’s holdover and Tenant fails to vacate the Premises within 15 days after notice from Landlord, Tenant shall be liable for all damages that Landlord suffers from the holdover. Notwithstanding the foregoing, Tenant shall not be liable for
consequential damages unless (1) Landlord notifies Tenant that it has entered into a lease for the Premises, and (2) Tenant fails to vacate the Premises within 30 days after the date of Landlord’s notice. 
  
 23. Subordination to Mortgages; Estoppel Certificate. 
  
 Tenant accepts this Lease subject and subordinate to any mortgage(s),
deed(s) of trust, ground lease(s) or other lien(s) now or subsequently arising upon the Premises, the Building or 

  

 15 

 
the Property, and to renewals, modifications, refinancings and extensions thereof (collectively referred to as a “Mortgage”). The party
having the benefit of a Mortgage shall be referred to as a “Mortgagee”. This clause shall be self-operative, but upon request from a Mortgagee, Tenant shall execute a commercially reasonable subordination agreement in favor of the
Mortgagee. As an alternative, a Mortgagee shall have the right at any time to subordinate its Mortgage to this Lease. Upon request, Tenant, without charge, shall attorn to any successor to Landlord’s interest in this Lease. Landlord and Tenant
shall each, within 10 days after receipt of a written request from the other, execute and deliver a commercially reasonable estoppel certificate to those parties as are reasonably requested by the other (including a Mortgagee or prospective
purchaser). Without limitation, such estoppel certificate may include a certification as to the status of this Lease, the existence of any defaults and the amount of Rent that is due and payable. Notwithstanding the foregoing, upon written request
by Tenant, Landlord will use reasonable efforts to obtain a non-disturbance, subordination and attornment agreement from Landlord’s then current Mortgagee on such Mortgagee’s then current standard form of agreement. “Reasonable
efforts” of Landlord shall not require Landlord to incur any cost, expense or liability to obtain such agreement, it being agreed that Tenant shall be responsible for any fee or review costs charged by the Mortgagee. Upon request of
Landlord, Tenant will execute the Mortgagee’s form of non-disturbance, subordination and attornment agreement and return the same to Landlord for execution by the Mortgagee. Landlord’s failure to obtain a non-disturbance, subordination and
attornment agreement for Tenant shall have no effect on the rights, obligations and liabilities of Landlord and Tenant or be considered to be a Default by Landlord hereunder. 
  
 24. Notice. 
  
 All demands, approvals, consents or notices (collectively referred to as a “notice”) shall be in writing and delivered by hand or sent by
registered or certified mail with return receipt requested or sent by overnight or same day courier service at the party’s respective Notice Address(es) set forth in Section 1. Each notice shall be deemed to have been received on the earlier to
occur of actual delivery or the date on which delivery is refused, or, if Tenant has vacated the Premises or any other Notice Address of Tenant without providing a new Notice Address, 3 days after notice is deposited in the U.S. mail or with a
courier service in the manner described above. Either party may, at any time, change its Notice Address (other than to a post office box address) by giving the other party written notice of the new address. 
  
 25. Surrender of Premises. 
  
 At the termination of this Lease or Tenant’s right of possession,
Tenant shall remove Tenant’s Property from the Premises, and quit and surrender the Premises to Landlord, broom clean, and in good order, condition and repair, ordinary wear and tear and damage which Landlord is obligated to repair hereunder
excepted. If Tenant fails to remove any of Tenant’s Property within 2 days after termination of this Lease or Tenant’s right to possession, Landlord, at Tenant’s sole cost and expense, shall be entitled (but not obligated) to remove
and store Tenant’s Property. Landlord shall not be responsible for the value, preservation or safekeeping of Tenant’s Property. Tenant shall pay Landlord, upon demand, the expenses and storage charges incurred. If Tenant fails to remove
Tenant’s Property from the Premises or storage, within 30 days after notice, Landlord may deem all or any part of Tenant’s Property to be abandoned and title to Tenant’s Property shall vest in Landlord. 
  

 16 

 26. Miscellaneous. 
  
 26.01 This Lease shall be interpreted and enforced in accordance with the Laws of the state or commonwealth in which the Building is located and Landlord
and Tenant hereby irrevocably consent to the jurisdiction and proper venue of such state or commonwealth. If any term or provision of this Lease shall to any extent be void or unenforceable, the remainder of this Lease shall not be affected. If
there is more than one Tenant or if Tenant is comprised of more than one party or entity, the obligations imposed upon Tenant shall be joint and several obligations of all the parties and entities, and requests or demands from any one person or
entity comprising Tenant shall be deemed to have been made by all such persons or entities. Notices to any one person or entity shall be deemed to have been given to all persons and entities. Tenant represents and warrants to Landlord that each
individual executing this Lease on behalf of Tenant is authorized to do so on behalf of Tenant and that Tenant is not, and the entities or individuals constituting Tenant or which may own or control Tenant or which may be owned or controlled by
Tenant are not, among the individuals or entities identified on any list compiled pursuant to Executive Order 13224 for the purpose of identifying suspected terrorists. 
  
 26.02 If either party institutes a suit against the other for violation of or to enforce any covenant, term or condition of
this Lease, the prevailing party shall be entitled to all of its costs and expenses, including, without limitation, reasonable attorneys’ fees. Landlord and Tenant hereby waive any right to trial by jury in any proceeding based upon a breach of
this Lease. Either party’s failure to declare a default immediately upon its occurrence, or delay in taking action for a default, shall not constitute a waiver of the default, nor shall it constitute an estoppel. 
  
 26.03 Whenever a period of time is prescribed for the taking of an action by
Landlord or Tenant (other than the payment of the Security Deposit or Rent), the period of time for the performance of such action shall be extended by the number of days that the performance is actually delayed due to strikes, acts of God,
shortages of labor or materials, war, terrorist acts, civil disturbances and other causes beyond the reasonable control of the performing party (“Force Majeure”). 
  
 26.04 Landlord shall have the right to transfer and assign, in whole or in part, all of its rights and obligations under
this Lease and in the Building and Property. Upon transfer Landlord shall be released from any further obligations hereunder and Tenant agrees to look solely to the successor in interest of Landlord for the performance of such obligations, provided
that, any successor pursuant to a voluntary, third party transfer (but not as part of an involuntary transfer resulting from a foreclosure or deed in lieu thereof) shall have assumed Landlord’s obligations under this Lease. 
  
 26.05 Landlord has delivered a copy of this Lease to Tenant for Tenant’s
review only and the delivery of it does not constitute an offer to Tenant or an option. Tenant represents that it has dealt directly with and only with the Broker as brokers in connection with this Lease. Tenant shall indemnify, defend and hold
Landlord and the Landlord Related Parties harmless from all claims of any other brokers claiming to have represented Tenant in connection with this Lease. Landlord agrees to indemnify, defend and hold Tenant and the Tenant Related Parties harmless
from all claims of any brokers, including the Broker, claiming to have represented Landlord in connection with this Lease. Landlord agrees to pay a brokerage commission to Richards, Barry, Joyce & Partners, LLC (“Richards”) in
accordance with the terms of a separate agreement between Landlord and Richards. The parties hereby acknowledge and agree that 

  

 17 

 
Richards, not Landlord, shall be responsible for paying any brokerage commissions or fees to Cushman and Wakefield of Massachusetts, Inc.. 
  
 26.06 Time is of the essence with respect to Tenant’s exercise of any
expansion, renewal or extension rights granted to Tenant. The expiration of the Term, whether by lapse of time, termination or otherwise, shall not relieve either party of any obligations which accrued prior to or which may continue to accrue after
the expiration or termination of this Lease. 
  
 26.07 Tenant may
peacefully have, hold and enjoy the Premises, subject to the terms of this Lease, provided Tenant pays the Rent and fully performs all of its covenants and agreements. This covenant shall be binding upon Landlord and its successors only during its
or their respective periods of ownership of the Building. 
  
 26.08 This Lease does not grant any rights to light or air over or about the Building. Landlord excepts and reserves exclusively to itself any and all rights not specifically granted to Tenant under this Lease. This Lease constitutes the
entire agreement between the parties and supersedes all prior agreements and understandings related to the Premises, including all lease proposals, letters of intent and other documents. Neither party is relying upon any warranty, statement or
representation not contained in this Lease. This Lease may be modified only by a written agreement signed by an authorized representative of Landlord and Tenant. 
  

 18 

 Landlord and Tenant have executed this Lease as of the day and year first above written. 
  

	 WITNESS/ATTEST:
	  	LANDLORD:
	 	  	 MA-RIVERVIEW/245 FIRST STREET, L.L.C., a Delaware
 limited liability company

			
	                                      
                                        
                                    	  	By:	  	Equity Office Management, L.L.C., a Delaware limited liability company, its non-member manager
	 Name
(print):                                      
                                        
          
	  	 	  	 By:
	  	 /s/ Glenn Verrette

	                                      
                                        
                                    	  	 	  	 Name:
	  	 Glenn Verrette

	 Name (print):                                   
                                        
             
	  	 	  	 Title:
	  	 Vice President Leasing-Boston Region

			
	 WITNESS/ATTEST:
	  	 	  	 TENANT:

			
	 	  	 	  	 BITSTREAM, INC.,
 a Delaware corporation

				
	                                      
                                        
                                    	  	 	  	 By:
	  	 /s/ Anna M. Chagnon

	 Name
(print):                                      
                                        
          
	  	 	  	 Name:
	  	 Anna M. Chagnon

	 	  	 	  	 Title:
	  	 President

			
	                                       
                                        
                                    
 Name
(print):                                      
                                        
          
	  	 	  	                                       
                                        
                                        
         
 Tenant’s Tax ID Number (SSN or
FEIN)

  

 19 

 EXHIBIT A 
  

OUTLINE AND LOCATION OF PREMISES 
  

 1 

 EXHIBIT B 
  

EXPENSES AND TAXES 
  
 This Exhibit is attached to and made a part of the Lease by and between MA-RIVERVIEW/245 FIRST STREET, L.L.C., a Delaware limited liability company
(“Landlord”) and BITSTREAM, INC.,a Delaware corporation (“Tenant”) for space in the Building located at 245 First Street, Cambridge, Massachusetts 02142. 
  
 1. Payments. 
  
 1.01 Tenant shall pay Tenant’s Pro Rata Share of the amount, if any, by
which Expenses (defined below) for each calendar year during the Term exceed Expenses for the Base Year (the “Expense Excess”) and also the amount, if any, by which Taxes (defined below) for each Fiscal Year during the Term exceed
Taxes for the Base Year (the “Tax Excess”). If Expenses or Taxes in any calendar year or Fiscal Year decrease below the amount of Expenses or Taxes for the Base Year, Tenant’s Pro Rata Share of Expenses or Taxes, as the case
may be, for that calendar year or Fiscal Year shall be $0. Landlord shall provide Tenant with a good faith estimate of the Expense Excess and of the Tax Excess for each calendar year or Fiscal Year during the Term. On or before the first day of each
month, Tenant shall pay to Landlord a monthly installment equal to one-twelfth of Tenant’s Pro Rata Share of Landlord’s estimate of both the Expense Excess and Tax Excess. After its receipt of the revised estimate, Tenant’s monthly
payments shall be based upon the revised estimate. If Landlord does not provide Tenant with an estimate of the Expense Excess or the Tax Excess by January 1 of a calendar year, Tenant shall continue to pay monthly installments based on the previous
year’s estimate(s) until Landlord provides Tenant with the new estimate. 
  
 1.02 As soon as is practical following the end of each calendar year or Fiscal Year, as the case may be, Landlord shall furnish Tenant with a statement of the actual Expenses and Expense Excess and the actual Taxes
and Tax Excess for the prior calendar year or Fiscal Year, as the case may be. If the estimated Expense Excess or estimated Tax Excess for the prior calendar year or Fiscal Year, as the case may be, is more than the actual Expense Excess or actual
Tax Excess for the prior calendar year or Fiscal Year, as the case may be, Landlord shall either provide Tenant with a refund or apply any overpayment by Tenant against Additional Rent due or next becoming due, provided if the Term expires before
the determination of the overpayment, Landlord shall refund any overpayment to Tenant after first deducting the amount of Rent due. If the estimated Expense Excess or estimated Tax Excess for the prior calendar year or Fiscal Year, as the case may
be, is less than the actual Expense Excess or actual Tax Excess, for such prior calendar year or Fiscal year, as the case may be, for such prior year, Tenant shall pay Landlord, within 30 days after its receipt of the statement of Expenses or Taxes,
any underpayment for the prior calendar year. 
  
 2. Expenses. 
  
 2.01 “Expenses”
means all costs and expenses incurred in each calendar year in connection with operating, maintaining, repairing, and managing the Buildings and the Property. Expenses include, without limitation: (a) all labor and labor related costs, including
wages, salaries, bonuses, taxes, insurance, uniforms, training, retirement plans, pension plans and other employee benefits; (b) management fees; (c) the cost of equipping, staffing and operating an on-site and/or off-site management office for the
Building, provided if the management office services one or more other buildings or properties, the shared costs and expenses of equipping, staffing and operating such management office(s) shall be equitably prorated and apportioned between the
Building and the other buildings or properties; (d) accounting costs; (e) the cost of services; (f) rental and purchase cost of parts, supplies, tools and equipment; (g) insurance premiums and deductibles; (h) electricity, gas and other utility
costs; and (i) the amortized cost of capital improvements (as distinguished from replacement parts or components installed in the ordinary course of business) made subsequent to the Base Year which are: (1) performed primarily to reduce current or
future operating expense costs, upgrade Building security or otherwise improve the operating efficiency of the Property; or (2) required to comply with any Laws that are enacted, or first interpreted to apply to the Property, after the date of this
Lease. The cost of capital improvements shall be amortized by Landlord over the lesser of the Payback Period (defined below) or the useful life of the capital improvement as reasonably determined by Landlord. “Payback Period” means
the reasonably estimated period of time that it takes for the cost savings resulting from a capital improvement to equal the total cost of the capital improvement. Landlord, by itself or through an affiliate, shall have the right to directly
perform, provide and be compensated for any services under this Lease. If Landlord incurs Expenses for the Building or Property together with one or more other buildings or properties, whether 

  

 1 

 
pursuant to a reciprocal easement agreement, common area agreement or otherwise, the shared costs and expenses shall be equitably prorated and apportioned
between the Building and Property and the other buildings or properties. 
  
 2.02 Expenses shall not include: the cost of capital improvements (except as set forth above); depreciation; principal payments of mortgage and other non-operating debts of Landlord; the cost of repairs or other work
to the extent Landlord is reimbursed by insurance or condemnation proceeds; costs in connection with leasing space in the Building, including brokerage commissions; lease concessions, rental abatements and construction allowances granted to specific
tenants; costs incurred in connection with the sale, financing or refinancing of the Building; fines, interest and penalties incurred due to the late payment of Taxes or Expenses; organizational expenses associated with the creation and operation of
the entity which constitutes Landlord; or any penalties or damages that Landlord pays to Tenant under this Lease or to other tenants in the Building under their respective leases. 
  
 2.03 If at any time during a calendar year the Building is not at least 95% occupied or Landlord is not supplying services
to at least 95% of the total Rentable Square Footage of the Building, Expenses shall, at Landlord’s option, be determined as if the Building had been 95% occupied and Landlord had been supplying services to 95% of the Rentable Square Footage of
the Building. If Expenses for a calendar year are determined as provided in the prior sentence, Expenses for the Base Year shall also be determined in such manner. Notwithstanding the foregoing, Landlord may calculate the extrapolation of Expenses
under this Section based on 100% occupancy and service so long as such percentage is used consistently for each year of the Term. The extrapolation of Expenses under this Section shall be performed in accordance with the methodology specified by the
Building Owners and Managers Association. 
  
 3. “Taxes” shall
mean: (a) all real property taxes and other assessments on the Building and/or Property, including, but not limited to, gross receipts taxes, assessments for special improvement districts and building improvement districts, governmental charges,
fees and assessments for police, fire, traffic mitigation or other governmental service of purported benefit to the Property, taxes and assessments levied in substitution or supplementation in whole or in part of any such taxes and assessments and
the Property’s share of any real estate taxes and assessments under any reciprocal easement agreement, common area agreement or similar agreement as to the Property; (b) all personal property taxes for property that is owned by Landlord and
used in connection with the operation, maintenance and repair of the Property; and (c) all costs and fees incurred in connection with seeking reductions in any tax liabilities described in (a) and (b), including, without limitation, any costs
incurred by Landlord for compliance, review and appeal of tax liabilities. Without limitation, Taxes shall not include any income, capital levy, transfer, capital stock, gift, estate or inheritance tax. If a change in Taxes is obtained for any year
of the Term during which Tenant paid Tenant’s Pro Rata Share of any Tax Excess, then Taxes for that year will be retroactively adjusted and Landlord shall provide Tenant with a credit, if any, based on the adjustment. Likewise, if a change is
obtained for Taxes for the Base Year, Taxes for the Base Year shall be restated and the Tax Excess for all subsequent years shall be recomputed. Tenant shall pay Landlord the amount of Tenant’s Pro Rata Share of any such increase in the Tax
Excess within 30 days after Tenant’s receipt of a statement from Landlord. 
  
 4. Audit Rights. Tenant, within 365 days after receiving Landlord’s statement of Expenses, may give Landlord written notice (“Review Notice”) that Tenant intends to review Landlord’s records of the Expenses
for the calendar year to which the statement applies. Within a reasonable time after receipt of the Review Notice, Landlord shall make all pertinent records available for inspection that are reasonably necessary for Tenant to conduct its review. If
any records are maintained at a location other than the management office for the Building, Tenant may either inspect the records at such other location or pay for the reasonable cost of copying and shipping the records. If Tenant retains an agent
to review Landlord’s records, the agent must be with a CPA firm licensed to do business in the state or commonwealth where the Property is located. Landlord agrees that Tenant may retain a third party agent to review Landlord’s books and
records which third party agent is not a CPA firm, so long as the third party agent retained by Tenant shall have expertise in and familiarity with general industry practice with respect to the operation of and accounting for a first class office
building and whose compensation shall in no way be contingent upon or correspond to the financial impact on Tenant resulting from the review. Tenant shall be solely responsible for all costs, expenses and fees incurred for the audit. Within
90 days after the records are made available to Tenant, Tenant shall have the right to give Landlord written notice (an “Objection Notice”) stating in reasonable detail any objection to Landlord’s statement of Expenses for that
year. If Tenant fails to give Landlord an Objection Notice within the 90 day period or fails to provide Landlord with a Review Notice within the 365 day period described above, Tenant shall be deemed to have 

  

 2 

 
approved Landlord’s statement of Expenses and shall be barred from raising any claims regarding the Expenses for that year. The records obtained by
Tenant shall be treated as confidential. In no event shall Tenant be permitted to examine Landlord’s records or to dispute any statement of Expenses unless Tenant has paid and continues to pay all Rent when due. 
  

 3 

 EXHIBIT C 
  

WORK LETTER 
  
 This Exhibit is attached to and made a part of the Lease by and between MA-RIVERVIEW/245 FIRST STREET, L.L.C., a Delaware limited liability company
(“Landlord”) and BITSTREAM, INC., a Delaware corporation (“Tenant”) for space in the Building located at 245 First Street, Cambridge, Massachusetts 02142. 
  
 As used in this Workletter, the “Premises” shall be deemed to mean the Premises, as
initially defined in the attached Lease. 
  

	1.	 	Landlord, at its sole cost and expense (subject to the terms and provisions of Section 2 below) shall perform improvements to the Premises in accordance with the plans prepared by
Visnick and Caulfield dated April 28, 2003 (the “Plans”) using Building standard methods, materials and finishes. The improvements to be performed in accordance with the Plans are hereinafter referred to as the “Landlord Work”.
Landlord shall enter into a direct contract for the Landlord Work with a general contractor selected by Landlord. In addition, Landlord shall have the right to select and/or approve of any subcontractors used in connection with the Landlord Work.

  

	2.	 	All other work and upgrades, subject to Landlord’s approval, shall be at Tenant’s sole cost and expense, plus any applicable state sales or use tax thereon, payable upon
demand as Additional Rent. Tenant shall be responsible for any Tenant Delay in completion of the Premises resulting from any such other work and upgrades requested or performed by Tenant. 

  

	3.	 	Landlord’s supervision or performance of any work for or on behalf of Tenant shall not be deemed to be a representation by Landlord that such work complies with applicable
insurance requirements, building codes, ordinances, Laws or regulations or that the improvements constructed will be adequate for Tenant’s use. 

  

	4.	 	This Exhibit shall not be deemed applicable to any additional space added to the Premises at any time or from time to time, whether by any options under the Lease or otherwise, or
to any portion of the original Premises or any additions to the Premises in the event of a renewal or extension of the original Term of the Lease, whether by any options under the Lease or otherwise, unless expressly so provided in the Lease or any
amendment or supplement to the Lease. 

  

 1 

 EXHIBIT D 
 COMMENCEMENT LETTER 
 (EXAMPLE) 
  

	 Date
	 	

	 Tenant
	 	  

	 Address
	 	  

	 	 	  

	 	 	  

  

	Re:	 	Commencement Letter with respect to that certain Lease dated as of the      day of
            ,             , by and between MA-RIVERVIEW/245 FIRST STREET, L.L.C., a Delaware limited liability
company, as Landlord, and BITSTREAM, INC., a Delaware corporation, as Tenant, for 18,035 rentable square feet on the 17th floor of the Building located at 245 First Street, Cambridge, Massachusetts 02142.

  
 Dear
                    : 
  
 In accordance with the terms and conditions of the above referenced Lease, Tenant accepts possession of the Premises and agrees: 
  

	 	1.	 	The Commencement Date of the Lease is                     ;

  

	 	2.	 	The Termination Date of the Lease is                     .

  
 Please acknowledge your acceptance of possession
and agreement to the terms set forth above by signing all 3 counterparts of this Commencement Letter in the space provided and returning 2 fully executed counterparts to my attention. 
  

	 Sincerely,

	
	
 Authorized Signatory

	
	 Agreed and Accepted:

  

	 	 	 Tenant:
	 	 BITSTREAM, INC.,
 a Delaware corporation

	 	 	 By:
	 	  

	 	 	 Name:
	 	  

	 	 	 Title:
	 	  

	 	 	 Date:
	 	  

  

 1 

 EXHIBIT E 
  

BUILDING RULES AND REGULATIONS 
  
 The following rules and regulations shall apply, where applicable, to the Premises, the Building, the parking facilities (if any), the Property and the
appurtenances. In the event of a conflict between the following rules and regulations and the remainder of the terms of the Lease, the remainder of the terms of the Lease shall control. Capitalized terms have the same meaning as defined in the
Lease. 
  

	1.	 	Sidewalks, doorways, vestibules, halls, stairways and other similar areas shall not be obstructed by Tenant or used by Tenant for any purpose other than ingress and egress to and
from the Premises. No rubbish, litter, trash, or material shall be placed, emptied, or thrown in those areas. At no time shall Tenant permit Tenant’s employees to loiter in Common Areas or elsewhere about the Buildings or Property.

  

	2.	 	Plumbing fixtures and appliances shall be used only for the purposes for which designed and no sweepings, rubbish, rags or other unsuitable material shall be thrown or placed in the
fixtures or appliances. Damage resulting to fixtures or appliances by Tenant, its agents, employees or invitees shall be paid for by Tenant and Landlord shall not be responsible for the damage. 

  

	3.	 	No signs, advertisements or notices shall be painted or affixed to windows, doors or other parts of the Buildings, except those of such color, size, style and in such places as are
first approved in writing by Landlord. All tenant identification and suite numbers at the entrance to the Premises shall be installed by Landlord, at Tenant’s cost and expense, using the standard graphics for the Buildings. Except in connection
with the hanging of lightweight pictures and wall decorations, no nails, hooks or screws shall be inserted into any part of the Premises or Buildings except by the Building maintenance personnel without Landlord’s prior approval, which approval
shall not be unreasonably withheld. 

  

	4.	 	Landlord may provide and maintain in the first floor (main lobby) of the Buildings an alphabetical directory board or other directory device listing tenants and no other directory
shall be permitted unless previously consented to by Landlord in writing. 

  

	5.	 	Tenant shall not place any lock(s) on any door in the Premises or Buildings without Landlord’s prior written consent, which consent shall not be unreasonably withheld, and
Landlord shall have the right at all times to retain and use keys or other access codes or devices to all locks within and into the Premises. A reasonable number of keys to the locks on the entry doors in the Premises shall be furnished by Landlord
to Tenant at Tenant’s cost and Tenant shall not make any duplicate keys. All keys shall be returned to Landlord at the expiration or early termination of the Lease. 

  

	6.	 	All contractors, contractor’s representatives and installation technicians performing work in the Buildings shall be subject to Landlord’s prior approval, which approval
shall not be unreasonably withheld, and shall be required to comply with Landlord’s standard rules, regulations, policies and procedures, which may be revised from time to time. Landlord has no obligation to allow any particular
telecommunication service provider to have access to the Buildings or to the Premises. If Landlord permits access, Landlord may condition the access upon the payment to Landlord by the service provider of fees assessed by Landlord in Landlord’s
sole discretion. 

  

	7.	 	Movement in or out of the Buildings of furniture or office equipment, or dispatch or receipt by Tenant of merchandise or materials requiring the use of elevators, stairways, lobby
areas or loading dock areas, shall be restricted to hours reasonably designated by Landlord. Tenant shall obtain Landlord’s prior approval by providing a detailed listing of the activity, which approval shall not be unreasonably withheld. If
approved by Landlord, the activity shall be under the supervision of Landlord and performed in the manner required by Landlord. Tenant shall assume all risk for damage to articles moved and injury to any persons resulting from the activity. If
equipment, property, or personnel of Landlord or of any other party is damaged or injured as a result of or in connection with the activity, Tenant shall be solely liable for any resulting damage, loss or injury. 

  

	8.	 	 Landlord shall have the right to approve the weight, size, or location of heavy equipment or articles in and about the Premises, which approval shall not be
unreasonably withheld. Damage to the Buildings or Property by the installation, maintenance, 

  

 1 

	 	 
operation, existence or removal of property of Tenant shall be repaired at Tenant’s sole expense. 

  

	9.	 	Corridor doors, when not in use, shall be kept closed. 

  

	10.	 	Tenant shall not: (1) make or permit any improper, objectionable or unpleasant noises or odors in the Buildings, or otherwise interfere in any way with other tenants or persons
having business with them; (2) solicit business or distribute or cause to be distributed, in any portion of the Buildings or Property, handbills, promotional materials or other advertising; or (3) conduct or permit other activities in the Buildings
or Property that might, in Landlord’s sole opinion, constitute a nuisance. 

  

	11.	 	No animals, except those assisting handicapped persons, shall be brought into the Buildings or kept in or about the Premises. 

  

	12.	 	No inflammable, explosive or dangerous fluids or substances shall be used or kept by Tenant in the Premises, Buildings or about the Property, except for those substances as are
typically found in similar premises used for general office purposes and are being used by Tenant in a safe manner and in accordance with all applicable Laws. Tenant shall not, without Landlord’s prior written consent, use, store, install,
spill, remove, release or dispose of, within or about the Premises or any other portion of the Property, any asbestos-containing materials or any solid, liquid or gaseous material now or subsequently considered toxic or hazardous under the
provisions of 42 U.S.C. Section 9601 et seq., M.G.L. c. 21C, M.G.L. c. 21E or any other applicable environmental Law which may now or later be in effect. Tenant shall comply with all Laws pertaining to and governing the use of these materials by
Tenant and shall remain solely liable for the costs of abatement and removal. 

  

	13.	 	Tenant shall not use or occupy the Premises in any manner or for any purpose which might injure the reputation or impair the present or future value of the Premises or the
Buildings. Tenant shall not use, or permit any part of the Premises to be used for lodging, sleeping or for any illegal purpose. 

  

	14.	 	Tenant shall not take any action which would violate Landlord’s labor contracts or which would cause a work stoppage, picketing, labor disruption or dispute or interfere with
Landlord’s or any other tenant’s or occupant’s business or with the rights and privileges of any person lawfully in the Buildings (“Labor Disruption”). Tenant shall take the actions necessary to resolve the Labor
Disruption, and shall have pickets removed and, at the request of Landlord, immediately terminate any work in the Premises that gave rise to the Labor Disruption, until Landlord gives its written consent for the work to resume. Tenant shall have no
claim for damages against Landlord or any of the Landlord Related Parties nor shall the Commencement Date of the Term be extended as a result of the above actions. 

  

	15.	 	Tenant shall not install, operate or maintain in the Premises or in any other area of the Buildings, electrical equipment that would overload the electrical system beyond its
capacity for proper, efficient and safe operation as determined solely by Landlord. Tenant shall not furnish cooling or heating to the Premises, including, without limitation, the use of electronic or gas heating devices, without Landlord’s
prior written consent. Tenant shall not use more than its proportionate share of telephone lines and other telecommunication facilities available to service the Building in which the Premises are located. 

  

	16.	 	Tenant shall not operate or permit to be operated a coin or token operated vending machine or similar device (including, without limitation, telephones, lockers, toilets, scales,
amusement devices and machines for sale of beverages, foods, candy, cigarettes and other goods), except for machines for the exclusive use of Tenant’s employees and invitees. 

  

	17.	 	Bicycles and other vehicles are not permitted inside the Buildings or on the walkways outside the Buildings, except in areas designated by Landlord. 

  

	18.	 	Landlord may from time to time adopt systems and procedures for the security and safety of the Buildings, its occupants, entry, use and contents. Tenant, its agents, employees,
contractors, guests and invitees shall comply with Landlord’s systems and procedures. 

  

 2 

	19.	 	Landlord shall have the right to prohibit the use of the name of the Buildings or any other publicity by Tenant that in Landlord’s sole opinion may impair the reputation of the
Buildings or their desirability. Upon written notice from Landlord, Tenant shall refrain from and discontinue such publicity immediately. 

  

	20.	 	Neither Tenant nor its agents, employees, contractors, guests or invitees shall smoke or permit smoking in the Common Areas, unless a portion of the Common Areas have been declared
a designated smoking area by Landlord, nor shall the above parties allow smoke from the Premises to emanate into the Common Areas or any other part of the Buildings. Landlord shall have the right to designate the Buildings (including the Premises)
as a non-smoking building. 

  

	21.	 	Landlord shall have the right to designate and approve standard window coverings for the Premises and to establish rules to assure that the Buildings present a uniform exterior
appearance. Tenant shall ensure, to the extent reasonably practicable, that window coverings are closed on windows in the Premises while they are exposed to the direct rays of the sun. 

  

	22.	 	Deliveries to and from the Premises shall be made only at the times in the areas and through the entrances and exits reasonably designated by Landlord. Tenant shall not make
deliveries to or from the Premises in a manner that might interfere with the use by any other tenant of its premises or of the Common Areas, any pedestrian use, or any use which is inconsistent with good business practice. 

 

	23.	 	The work of cleaning personnel shall not be hindered by Tenant after 5:30 P.M., and cleaning work may be done at any time when the offices are vacant. Windows, doors and fixtures
may be cleaned at any time. Tenant shall provide adequate waste and rubbish receptacles to prevent unreasonable hardship to the cleaning service. 

  

 3 

 EXHIBIT F 
  

ADDITIONAL PROVISIONS 
  
 This Exhibit is attached to and made a part of the Lease by and between MA-RIVERVIEW/245 FIRST STREET, L.L.C., a Delaware limited liability company
(“Landlord”) and BITSTREAM, INC., a Delaware corporation (“Tenant”) for space in the Building located at 245 First Street, Cambridge, Massachusetts 02142. 
  
 1. Renewal Option. 
  

	 	1.01	 	Grant of Option; Conditions. Tenant shall have the right to extend the Term (the “Renewal Option”) for one additional period of 5 years commencing on the day
following the Termination Date of the initial Term and ending on the 5th anniversary of the Termination Date (the
“Renewal Term”), if: 

  

	 	a.	 	Landlord receives notice of exercise (“Initial Renewal Notice”) not less than 9 full calendar months prior to the expiration of the initial Term and not more than
12 full calendar months prior to the expiration of the initial Term; and 

  

	 	b.	 	Tenant is not in Default under the Lease beyond any applicable cure periods at the time that Tenant delivers its Initial Renewal Notice or at the time Tenant delivers its Binding
Notice (as defined below); and 

  

	 	c.	 	Not more than 50% of the Premises is sublet (other than pursuant to a Permitted Transfer, as defined in Section 11 of the Lease) at the time that Tenant delivers its Initial Renewal
Notice or at the time Tenant delivers its Binding Notice; and 

  

	 	d.	 	The Lease has not been assigned (other than pursuant to a Permitted Transfer, as defined in Section 11 of the Lease) prior to the date that Tenant delivers its Initial Renewal
Notice or prior to the date Tenant delivers its Binding Notice. 

  

	 	1.02	 	Terms Applicable to Premises During Renewal Term. 

  

	 	a.	 	The initial Base Rent rate per rentable square foot for the Premises during the Renewal Term shall equal the Prevailing Market (hereinafter defined) rate per rentable square foot
for the Premises. Base Rent during the Renewal Term shall increase, if at all, in accordance with the increases assumed in the determination of Prevailing Market rate. Base Rent attributable to the Premises shall be payable in monthly installments
in accordance with the terms and conditions of Section 4 of the Lease. 

  

	 	b.	 	Tenant shall pay Additional Rent (i.e. Taxes and Expenses) for the Premises during the Renewal Term in accordance with Section 4 of the Lease, and the manner and method in which
Tenant reimburses Landlord for Tenant’s share of Taxes and Expenses and the Base Year, if any, applicable to such matter, shall be some of the factors considered in determining the Prevailing Market rate for the Renewal Term.

  

	 	1.03	 	 Procedure for Determining Prevailing Market. Within 30 days after receipt of Tenant’s Initial Renewal Notice, Landlord shall advise Tenant of the
applicable Base Rent rate for the Premises for the Renewal Term. Tenant, within 15 days after the date on which Landlord advises Tenant of the applicable Base Rent rate for the Renewal Term, shall either (i) give Landlord final binding written
notice (“Binding Notice”) of Tenant’s exercise of its Renewal Option, or (ii) if Tenant disagrees with Landlord’s determination, provide Landlord with written notice of rejection (the “Rejection Notice”).
If Tenant fails to provide Landlord with either a Binding Notice or Rejection Notice within such 15 day period, Tenant’s Renewal Option shall be deemed exercised upon the terms and conditions set forth herein. If Tenant provides Landlord with a
Binding Notice, Landlord and Tenant shall enter into the Renewal Amendment (as defined below) upon the terms and conditions set forth herein. If Tenant provides Landlord with a Rejection Notice, Landlord and Tenant shall work together in good faith
to agree upon the Prevailing Market rate for the Premises during the Renewal Term. 

  

 1 

	 	 
When Landlord and Tenant have agreed upon the Prevailing Market rate for the Premises, such agreement shall be reflected in a written agreement between
Landlord and Tenant, whether in a letter or otherwise, and Landlord and Tenant shall enter into the Renewal Amendment in accordance with the terms and conditions hereof. Notwithstanding the foregoing, if Landlord and Tenant are unable to agree upon
the Prevailing Market rate for the Premises within 30 days after the date Tenant provides Landlord with the Rejection Notice, then either party, by written notice to the other (the “Arbitration Notice”) within 5 days after the
expiration of such 30 day period, shall have the right to have the Prevailing Market rate determined in accordance with the arbitration procedures described below. If Landlord and Tenant are unable to agree upon the Prevailing Market rate for the
Premises within the 30 day period described and Tenant fails to timely exercise its right to arbitrate, Tenant’s Renewal Option shall be deemed exercised upon the terms and conditions set forth herein. 

  

	 	1.04	 	Arbitration Procedure. 

  

	 	1.	 	If Tenant provides Landlord with an Arbitration Notice, Landlord and Tenant, within 5 days after the date of the Arbitration Notice, shall each simultaneously submit to the other,
in a sealed envelope, its good faith estimate of the Prevailing Market rate for the Premises during the Renewal Term (collectively referred to as the “Estimates”). If the higher of such Estimates is not more than 105% of the lower
of such Estimates, then Prevailing Market rate shall be the average of the two Estimates. If the Prevailing Market rate is not resolved by the exchange of Estimates, then, within 30 days after the exchange of Estimates, Landlord and Tenant shall
each select an appraiser to determine which of the two Estimates most closely reflects the Prevailing Market rate for the Premises during the Renewal Term. Each appraiser so selected shall be certified as an MAI appraiser or as an ASA appraiser and
shall have had at least 5 years experience within the previous 10 years as a real estate appraiser working in Kendall Square area of Cambridge, Massachusetts, with working knowledge of current rental rates and practices. For purposes hereof, an
“MAI” appraiser means an individual who holds an MAI designation conferred by, and is an independent member of, the American Institute of Real Estate Appraisers (or its successor organization, or in the event there is no successor
organization, the organization and designation most similar), and an “ASA” appraiser means an individual who holds the Senior Member designation conferred by, and is an independent member of, the American Society of Appraisers (or
its successor organization, or, in the event there is no successor organization, the organization and designation most similar). 

  

	 	2.	 	 Upon selection, Landlord’s and Tenant’s appraisers shall work together in good faith to agree upon which of the two Estimates most closely reflects the
Prevailing Market rate for the Premises. The Estimate chosen by such appraisers shall be binding on both Landlord and Tenant as the Base Rent rate for the Premises during the Renewal Term. If either Landlord or Tenant fails to appoint an appraiser
within the 30 day period referred to above, the appraiser appointed by the other party shall be the sole appraiser for the purposes hereof. If the two appraisers cannot agree upon which of the two Estimates most closely reflects the Prevailing
Market within 20 days after their appointment, then, within 10 days after the expiration of such 20 day period, the two appraisers shall select a third appraiser meeting the aforementioned criteria. Once the third appraiser (i.e. arbitrator) has
been selected as provided for above, then, as soon thereafter as practicable but in any case within 14 days, the arbitrator shall make his determination of which of the two Estimates most closely reflects the Prevailing Market rate and such Estimate
shall be binding on both Landlord and Tenant as the Base Rent rate for the Premises. If the arbitrator believes that expert advice would materially assist him, he/she may retain one or more qualified persons to provide such expert advice. The
parties shall share equally in the costs of the arbitrator and of any experts retained by the arbitrator. Any fees of any appraiser, counsel or experts engaged directly by Landlord or Tenant, 

  

 1 

 however, shall be borne by the party retaining such appraiser, counsel or expert. 
  

	 	3.	 	If the Prevailing Market rate has not been determined by the commencement date of the Renewal Term, Tenant shall pay Base Rent upon the terms and conditions in effect during the
last month of the initial Term for the Premises until such time as the Prevailing Market rate has been determined. Upon such determination, the Base Rent for the Premises shall be retroactively adjusted to the commencement of the Renewal Term for
the Premises. If such adjustment results in an underpayment of Base Rent by Tenant, Tenant shall pay Landlord the amount of such underpayment within 30 days after the determination thereof. If such adjustment results in an overpayment of Base Rent
by Tenant, Landlord shall credit such overpayment against the next installment of Base Rent due under the Lease and, to the extent necessary, any subsequent installments, until the entire amount of such overpayment has been credited against Base
Rent. 

  

	 	1.05	 	Renewal Amendment. If Tenant is entitled to and properly exercises its Renewal Option, Landlord shall prepare an amendment (the “Renewal Amendment”) to
reflect changes in the Base Rent, Term, Termination Date and other appropriate terms. The Renewal Amendment shall be sent to Tenant within a reasonable time after Landlord’s receipt of the Binding Notice or other written agreement by Landlord
and Tenant regarding the Prevailing Market rate, and Tenant shall execute and return the Renewal Amendment to Landlord within 15 days after Tenant’s receipt of same, but, upon final determination of the Prevailing Market rate applicable during
the Renewal Term as described herein, an otherwise valid exercise of the Renewal Option shall be fully effective whether or not the Renewal Amendment is executed. 

  

	 	1.06	 	Definition of Prevailing Market. For purposes of this Renewal Option, “Prevailing Market” shall mean the arms length fair market annual rental rate per
rentable square foot under renewal leases and amendments entered into on or about the date on which the Prevailing Market is being determined hereunder for space comparable to the Premises in the Building and office buildings comparable to the
Building in the Kendall Square area of Cambridge, Massachusetts. The determination of Prevailing Market shall take into account any material economic differences between the terms of this Lease and any comparison lease or amendment, such as rent
abatements, construction costs and other concessions and the manner, if any, in which the landlord under any such lease is reimbursed for operating expenses and taxes. The determination of Prevailing Market shall also take into consideration any
reasonably anticipated changes in the Prevailing Market rate from the time such Prevailing Market rate is being determined and the time such Prevailing Market rate will become effective under this Lease. 

  
 2. PARKING. 
  

	 	2.01	 	During the initial Term, Tenant agrees to lease from Landlord and Landlord agrees to lease to Tenant a total of 37 unreserved parking spaces (collectively, the
“Spaces”) in, or on the roof of, the Building garage (“Garage”) for the use of Tenant and its employees. No deductions or allowances shall be made for days when Tenant or any of its employees does not utilize the
parking facilities or for Tenant utilizing less than all of the Spaces. Tenant shall not have the right to lease or otherwise use more than the number of reserved and unreserved Spaces set forth above. Tenant shall have the right from time to time
to reduce the number of Spaces that it leases from Landlord upon prior written notice to Landlord, and in such case Tenant shall have no further right to lease such Spaces from Landlord and relinquishes its right to use such Spaces.

  

	 	2.02	 	During the initial Term, Tenant shall pay Landlord, as Additional Rent in accordance with Article 4 of the Lease, the sum of $150.00 per month, plus applicable tax thereon, if any,
for each unreserved Space leased by Tenant hereunder. 

  

 1 

	 	2.03	 	Except for particular spaces and areas designated by Landlord for reserved parking, all parking in the Garage and surface parking areas serving the Building shall be on an
unreserved, first-come, first-served basis. 

  

	 	2.04	 	Landlord shall not be responsible for money, jewelry, automobiles or other personal property lost in or stolen from the Garage or the surface parking areas regardless of whether
such loss or theft occurs when the Garage or other areas therein are locked or otherwise secured. Except as caused by the negligence or willful misconduct of Landlord and without limiting the terms of the preceding sentence, Landlord shall not be
liable for any loss, injury or damage to persons using the Garage or the surface parking areas or automobiles or other property therein, it being agreed that, to the fullest extent permitted by law, the use of the Spaces shall be at the sole risk of
Tenant and its employees. 

  

	 	2.05	 	Landlord shall have the right from time to time to designate the location of the Spaces and to promulgate reasonable rules and regulations regarding the Garage, the surface parking
areas, if any, the Spaces and the use thereof, including, but not limited to, rules and regulations controlling the flow of traffic to and from various parking areas, the angle and direction of parking and the like. Tenant shall comply with and
cause its employees to comply with all such rules and regulations as well as all reasonable additions and amendments thereto. 

  

	 	2.06	 	Tenant shall not store or permit its employees to store any automobiles in the Garage or on the surface parking areas without the prior written consent of Landlord. Except for
emergency repairs, Tenant and its employees shall not perform any work on any automobiles while located in the Garage or on the Property. If it is necessary for Tenant or its employees to leave an automobile in the Garage or on the surface parking
areas overnight, Tenant shall provide Landlord with prior notice thereof designating the license plate number and model of such automobile. 

  

	 	2.07	 	Landlord shall have the right to temporarily close the Garage or certain areas therein in order to perform necessary repairs, maintenance and improvements to the Garage or the
surface parking areas, if any. If the closure is for more than 3 consecutive Business Days, Tenant shall be entitled to receive a pro rata reduction in the Additional Rent that Tenant is paying Landlord for the Spaces pursuant to paragraph 2.02
herein for each Space that Tenant is not able to use as a result of such repairs, maintenance and improvements, until the applicable Spaces are again available for Tenant’s use. 

  

	 	2.08	 	Tenant shall not assign or sublease any of the Spaces without the consent of Landlord. Landlord shall have the right to terminate this Parking Agreement with respect to any Spaces
that Tenant desires to sublet or assign. 

  

	 	2.09	 	Landlord may elect to provide parking cards or keys to control access to the Garage or surface parking areas, if any. In such event, Landlord shall provide Tenant with one card or
key for each Space that Tenant is leasing hereunder, provided that Landlord shall have the right to require Tenant or its employees to place a deposit on such access cards or keys and to pay a fee for any lost or damaged cards or keys.

  

	 	2.10	 	Landlord hereby reserves the right to enter into a management agreement or lease with an entity for the Garage (“Garage Operator”). In such event, Tenant, upon
request of Landlord, shall enter into a parking agreement with the Garage Operator and pay the Garage Operator the monthly charge established hereunder, and Landlord shall have no liability for claims arising through acts or omissions of the Garage
Operator unless caused by Landlord’s negligence or willful misconduct. It is understood and agreed that the identity of the Garage Operator may change from time to time during the Term. In connection therewith, any parking lease or agreement
entered into between Tenant and a Garage Operator shall be freely assignable by such Garage Operator or any successors thereto. 

  

 1 

 EXHIBIT G 
  

COMMENCEMENT DATE AGREEMENT 
  
 Reference is made to that certain Lease by and between MA-RIVERVIEW/245 FIRST STREET, L.L.C., a Delaware limited liability company, Landlord and
BITSTREAM, INC., a Delaware corporation, Tenant, and dated             , a Notice of which is filed for registration with the Suffolk Registry District of the Land Court as
Document No.             . 
  
 Landlord and Tenant hereby confirm and agree that the Commencement Date under the Lease is             . 
  
 This Commencement Date Agreement is executed as a sealed instrument as of
            , 20    . 
  
 IN WITNESS WHEREOF, Landlord and Tenant have executed this exhibit as of the day and year first above written. 
  

	WITNESS/ATTEST:	  	LANDLORD:
		
	 	  	 MA-RIVERVIEW/245 FIRST STREET, L.L.C., a
 Delaware limited liability company

			
	 	  	 By:
	  	Equity Office Management, L.L.C., a Delaware limited liability company, its
non-member manager
					
	 	  	 	  	 	  	 By:
	  	 EXHIBIT—DO NOT EXECUTE

					
	 	  	 	  	 	  	 Name:
	  	 EXHIBIT—DO NOT EXECUTE

					
	                                       
                                      
	  	 	  	 	  	 Title:
	  	 EXHIBIT—DO NOT EXECUTE

	 Name
(print):                                      
            
	  	 	  	 	  	 	  	 
	                                       
                                      
	  	 	  	 	  	 	  	 
	 Name
(print):                                      
            
	  	 	  	 	  	 	  	 
				
	 WITNESS/ATTEST:
	  	 TENANT:
	  	 	  	 
	 	  	                         , a(n)
                        
	  	 
				
	                                       
                                      
	  	 By:
	  	 EXHIBIT—DO NOT EXECUTE

	  	 
				
	 Name
(print):                                      
            
	  	 Name:
	  	 EXHIBIT—DO NOT EXECUTE

	  	 
				
	                                      
                                      	  	 Title:
	  	 EXHIBIT—DO NOT EXECUTE

	  	 
			
	 Name
(print):                                      
            
	  	 	  	 

  

 1 

 EXHIBIT H 
  

LETTER OF CREDIT 
  
 [Name of Financial Institution] 
  

	 Irrevocable Standby

	 Letter of Credit

	 No.                                      
                                        
                  

	 Issuance
Date:                                       
                                    

	 Expiration
Date:                                       
                                

	 Applicant: Bitstream, Inc.,

  
 Beneficiary 
  
 MA-RIVERVIEW/245
FIRST STREET, L.L.C. 
 C/o Equity Office 
 245 First Street 
 Cambridge, Massachusetts 
 Attention: Property Manager 
  
 Ladies/Gentlemen: 
  
 We hereby establish our Irrevocable Standby Letter of Credit in your favor
for the account of the above referenced Applicant in the amount of Three Hundred Thousand and 00/100 U.S. Dollars ($300,000.00) available for payment at sight by your draft drawn on us when accompanied by the following documents: 
  

	1.	 	An original copy of this Irrevocable Standby Letter of Credit. 

  

	2.	 	Beneficiary’s dated statement purportedly signed by an authorized signatory or agent reading: “This draw in the amount of
                     U.S. Dollars ($            ) under your Irrevocable
Standby Letter of Credit No.              represents funds due and owing to us pursuant to the terms of that certain lease by and between MA-RIVERVIEW/245 FIRST STREET, L.L.C., a
Delaware limited liability company, as landlord, and BITSTREAM, INC.,a Delaware corporation, as tenant, and/or any amendment to the lease or any other agreement between such parties related to the lease.” 

  
 It is a condition of this Irrevocable Standby Letter of Credit that it will
be considered automatically renewed for a one year period upon the expiration date set forth above and upon each anniversary of such date, unless at least 60 days prior to such expiration date or applicable anniversary thereof, we notify you in
writing, by certified mail return receipt requested or by recognized overnight courier service, that we elect not to so renew this Irrevocable Standby Letter of Credit. A copy of any such notice shall also be sent, in the same manner, to: Equity
Office Properties Trust, 2 North Riverside Plaza, Suite 2100, Chicago, Illinois 60606, Attention: Treasury Department. In addition to the foregoing, we understand and agree that you shall be entitled to draw upon this Irrevocable Standby Letter of
Credit in accordance with 1 and 2 above in the event that we elect not to renew this Irrevocable Standby Letter of Credit and, in 

  

 2 

 
addition, you provide us with a dated statement purportedly signed by an authorized signatory or agent of Beneficiary stating that the Applicant has failed
to provide you with an acceptable substitute irrevocable standby letter of credit in accordance with the terms of the above referenced lease. We further acknowledge and agree that: (a) upon receipt of the documentation required herein, we will honor
your draws against this Irrevocable Standby Letter of Credit without inquiry into the accuracy of Beneficiary’s signed statement and regardless of whether Applicant disputes the content of such statement; (b) this Irrevocable Standby Letter of
Credit shall permit partial draws and, in the event you elect to draw upon less than the full stated amount hereof, the stated amount of this Irrevocable Standby Letter of Credit shall be automatically reduced by the amount of such partial draw; and
(c) you shall be entitled to transfer your interest in this Irrevocable Standby Letter of Credit from time to time and more than one time without our approval and without charge. In the event of a transfer, we reserve the right to require reasonable
evidence of such transfer as a condition to any draw hereunder. 
  
 This Irrevocable Standby Letter of Credit is subject to the Uniform Customs and Practice for Documentary Credits (1993 revision) ICC Publication No. 500. 
  
 We hereby engage with you to honor drafts and documents drawn under and in compliance with the terms of this Irrevocable
Standby Letter of Credit. 
  
 All communications to us with
respect to this Irrevocable Standby Letter of Credit must be addressed to our office located 245 First Street, Cambridge, Massachusetts to the attention of Property Manager. 
  

	 Very truly yours,

	
	  

	
	 [name]

	
	 [title}

  

 3Stock purchase agreement between Extensis, Inc., DiamondSoft, Inc., Brian Berson

 EXHIBIT 10.13 
  
 STOCK PURCHASE AGREEMENT 
  
 STOCK PURCHASE AGREEMENT (hereinafter called “Agreement”), dated as of June 27, 2003, by and among EXTENSIS, INC., an Oregon corporation
(“Buyer”), DIAMONDSOFT, INC., a California corporation (“Company”), BRIAN BERSON (“Berson”), and Bitstream, Inc., a Delaware corporation (“Bitstream”), (Berson and Bitstream, each, a “Seller”, and,
collectively, “Sellers”): 
  
 RECITALS 

 
 A. Sellers are the owners of 81% of the issued and outstanding shares of
capital stock of the Company (the “Shares”). 
  
 B.
Buyer wishes to purchase the Shares from Sellers, and Sellers wish to sell the Shares to Buyer, in accordance with the terms and conditions of this Agreement. 
  

C. The Company’s Board of Directors and Buyer’s Board of Directors have determined that the Transaction is in the Company’s best
interest, and Buyer’s best interest, respectively. 
  
 D.
Buyer, Sellers and the Company wish to make certain representations, warranties, covenants and agreements in connection with the Transaction. 
  
 NOW, THEREFORE, in consideration of the mutual representations, warranties, covenants and agreements set forth herein, the receipt and sufficiency of
which are hereby acknowledged, the parties hereby agree as follows: 
  
 ARTICLE 1. 
  
 Definitions and Principles of
Interpretation 
  

	1.1	 	Defined Terms 

  
 As used in this Agreement, the following terms shall have the respective meanings set forth below: 
  
 “Affiliate”: As to any Person, any other Person which, directly or
indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, such Person. 
  
 “Affiliated Group”: An “affiliated group” as defined in Section 1504(a)(1) of the Code. 
  
 “Authorized Representative”: As to any Person, such Person’s
officers, directors, employees, counsel and accountants. 

 “Business Records”: All originals and copies of all operating data and records of the Company
including, without limitation, financial, accounting and bookkeeping books and records, customer complaint files, product quality documentation, purchase and sale orders and invoices, sales data, sales promotional data, advertising materials,
marketing analyses, past and present price lists, past and present customer service files, credit files, warranty files, written operating methods and procedures, specifications, operating records and other information related to the Tangible
Personal Property, reference catalogues, insurance files, personnel records and other records, on whatever media, pertaining to the Company, or to customers or suppliers of, or any other Persons having contracts or other business relationships with,
the Company. 
  
 “Buyer’s Disclosure Schedule”: The
disclosure schedule dated the date of this Agreement, delivered by Buyer to Sellers and the Company and attached hereto. 
  
 “Claims Period”: The period beginning on the Closing Date and ending on the first anniversary of the Closing Date. 
  
 “Code”: The Internal Revenue Code of 1986, as amended. 

 
 “Company Disclosure Schedule”: The disclosure schedule dated the
date of this Agreement, delivered by the Company to Buyer and attached hereto. 
  
 “Confidentiality Agreement”: The Confidentiality Agreement by and between Buyer and the Company dated April 16, 2003. 
  

“Consent”: Any consent, permission, approval or authorization of or by any Person. 
  
 “Contract”: Any written or oral contract, purchase or sale order,
real or personal property lease or sale agreement, Lien, promissory note, loan agreement, guaranty or other agreement in which the Company is a party or by which the Company is bound (other than the Employee Contracts) including, without limitation,
all distributor, sales representative and dealer agreements, joint venture and teaming agreements, purchase and supply contracts, maintenance contracts, license and royalty agreements, government contracts, partnering agreements, indebtedness
instruments, letters of credit, performance bonds, currency contracts, agreements with respect to guaranties, suretyships, covenants not to compete or solicit, confidentiality agreements and indemnification agreements, by or for the benefit of the
Company, or by which the Company is bound, purchase and all other contracts and agreements whatsoever, and all amendments relating to any of the foregoing. 
  
 “Corporate Records”: The Company’s articles of incorporation (including all amendments thereto), bylaws (including all amendments thereto),
minutes, unanimous written consents, resolutions, stock records, stock transfer ledger, canceled certificates and other documents customarily contained in corporate minute books. 
  
 “Employee Contract”: Any written or oral contract, agreement, arrangement, policy, program, plan or practice
(exclusive of any such contract which is terminable within thirty (30) days without liability to the Company), directly or indirectly providing for or relating to any employment, consulting, remuneration, compensation or benefit, severance or other
similar arrangement, insurance coverage (including any self-insured arrangements), medical-surgical- 

 
hospital or other health benefits, workers’ compensation, disability benefits, supplemental employment benefits, vacation benefits and other forms of
paid or unpaid leave, retirement benefits, tuition reimbursement, deferred compensation, savings or bonus plans, profit-sharing, stock options, stock appreciation rights, or other forms of incentive compensation or post-retirement compensation or
benefit, employment guarantee or security, or limitation on right to discipline or discharge, or relating to confidentiality, nonsolicitation, ownership of inventions, noncompetition or the like, which (i) is not an Employee Plan, (ii) has been
entered into or maintained, as the case may be, by the Company and (iii) covers any one or more Employee. 
  
 “Environmental Laws”: All present and future federal, state and local laws (whether under common law, statute, rule, regulation or otherwise),
Permits, and other requirements of Governmental Authorities relating to the protection of human health or the environment or to any Hazardous Materials. Such laws include, without limitation, the Comprehensive Environmental Response, Compensation
and Liability Act; Resource Conservation and Recovery Act; Clean Water Act; Clean Air Act; Hazardous Materials Transportation Act; Toxic Substances Control Act; Occupational Safety and Health Act; and their state and local counterparts. 

 
 “ERISA”: The Employee Retirement Income Security Act of 1974, as
amended, and all regulations promulgated thereunder. 
  
 “ERISA Affiliates”: Any trade or business, whether or not incorporated, that is now or has at any time in the past been treated as a single employer with the Company under Section 414(b) or (c) of the Code and the Treasury
Regulations thereunder. 
  
 “Escrow Amount”: $300,000.

  
 “GAAP”: United States generally accepted accounting
principles recommended from time to time by the Financial Accounting Standards Board. 
  
 “Governmental Authority”: Any United States federal, state or municipal entity, any foreign government, and any political subdivision or other executive, legislative, administrative, judicial, quasi-judicial
or other governmental department, commission, court, board, bureau, agency or instrumentality, domestic or foreign. 
  
 “Hazardous Materials”: Materials that, because of their quantity, concentration or physical, chemical or infectious characteristics, may cause
or pose a present or potential hazard to human health or the environment when improperly used, treated, stored, disposed of, generated, manufactured, transported or otherwise handled. “Hazardous Materials” shall include, but is not limited
to, any and all hazardous or toxic substances, materials or wastes as defined or listed under any of the Environmental Laws. “Hazardous Materials” shall specifically include, but not be limited to, petroleum or petroleum products,
including crude oil and any fraction thereof. 
  
 “Intangible
Property”: All intellectual property rights, including, but not limited to, patents, patent applications, trademarks, trademark applications and registrations, service marks, service mark applications and registrations, tradenames, copyrights,
licenses and customer lists, proprietary processes, formulae, inventions, trade secrets, know-how, development tools and other proprietary rights used by the Company pertaining to any product, software or service 

 
manufactured, marketed, licensed, sold or distributed by the Company in the conduct of its business as currently conducted or used, employed or exploited, or
available for use, in the development, licensing, sale, marketing, distribution or maintenance thereof, and all documentation and media constituting, describing or relating to the above, including, but not limited to, manuals, memoranda, know-how,
notebooks, software, records and disclosures; provided however, that Intangible Property does not include third party off-the-shelf software that is generally commercially available. 
  
 “Knowledge”: As to any Person, that which such Person actually knows or should know after making due inquiries
regarding the relevant matter of relevant employees and advisors of such Person reasonably believed to have knowledge of such matters. 
  
 “Lien”: Any mortgage, pledge, lien, charge, encumbrance, security interest or claim of any kind. 
  
 “Loss”: Any and all loss, damage, claim, obligation, liability,
cost and expense (including, without limitation, reasonable attorney and other professional fees and costs and expenses incurred in investigating, preparing, defending against or prosecuting any Proceeding). 
  
 “Order”: Any judgment, writ, injunction, order, directive, ruling
or decree of any arbitrator or any court or other Governmental Authority. 
  
 “Permit”: Any permit, license, franchise, Consent, variance, exemption, or approval issued or granted by, or authorization of, expiration or termination of any waiting period requirement by, or filing,
registration, qualification, declaration or designation with, any Governmental Authority. 
  
 “Person”: Any individual or corporation, company, general partnership, limited partnership, limited liability company, limited liability partnership, trust, incorporated or unincorporated association, joint
venture, Governmental Authority or other entity of any kind. 
  
 “Proceeding”: Any claim, suit, action, arbitration, investigation or proceeding. 
  
 “Real Property”: All real property now or in the past owned, leased or occupied by the Company or any other Person to which the Company is or is
deemed to be a successor in interest, whether directly or indirectly (including, without limitation, by merger, under applicable Environmental Laws or otherwise), or in which the Company or any such other Person has now or in the past had any
interest, together with (i) all buildings and improvements located thereon and (ii) all rights, privileges, interests, easements, hereditaments and appurtenances relating thereto. 
  
 “Release”: Any spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping,
leaching, migration, dumping or disposing into the environment. 
  
 “Relevant Insider”: Any holder of more than ten percent (10%) of the outstanding shares of, and any officer, director, manager or purchasing agent of, the Company. 
  
 “Securities Act”: The Securities Act of 1933, as amended. 

 “Subsidiary”: As to any Person, any other Person of which at least the majority of the equity
or voting interests are owned, directly or indirectly, by such first Person. 
  
 “Tangible Personal Property”: All tangible personal property (other than inventory) used to conduct the business of the Company including, without limitation, computer hardware, furniture and fixtures,
leasehold improvements, supplies and other tangible assets, together with any transferable manufacturer or vendor warranties related thereto. 
  
 “Tax” or “Taxes”: Means any federal, state, local, or foreign income, gross receipts, license, payroll, employment, excise, severance,
stamp, occupation, premium, windfall profits, environmental (including taxes under Section 59A of the Code), customs duties, capital stock, franchise, profits, withholding, social security (or similar), unemployment, disability, real property,
personal property, sales, use, transfer, registration, value added, alternative or add-on minimum, estimated, or other tax of any kind whatsoever, including any interest, penalty, or addition thereto, whether disputed or not. 
  
 “Tax Affiliate”: With respect to any Person, any other Person that
is a member of the same Affiliated Group as such Person. 
  
 “Tax Period” or “Taxable Period”: Any period prescribed by any Governmental Authority for which a Tax Return is required to be filed or a Tax is required to be paid. 
  
 “Tax Return”: Means any return, declaration, report, claim for
refund, or information return or statement related to Taxes, including any schedule or attachment thereto, and including any amendment thereof. 
  
 “Transaction”: The execution, delivery and performance of this Agreement and the other agreements contemplated hereby, including the sale and
purchase of the Shares and the other actions required in connection therewith. 
  
 “Working Capital”: The Company’s current assets less current liabilities, but specifically excluding nonrefundable prepaid sales as set forth on the Company’s balance sheet prepared as of the
Closing Date. 
  

	1.2	 	Other Defined Terms 

  

	 Term

	 	 Section

	 Benefit Arrangement
	 	5.10.1
	 Buyer
	 	Introductory Paragraph
	 Buyer’s Bring-Down Certificate
	 	9.2.3
	 Closing
	 	3.1
	 Closing Balance Sheet
	 	2.3
	 Closing Date
	 	3.1
	 COBRA
	 	5.10.9
	 Company
	 	Introductory Paragraph
	 Company’s Bring-Down Certificate
	 	9.1.3
	 Confidential Information
	 	11.1.1

	 Current Real Property
	 	5.12.1
	 Effective Time
	 	3.1
	 Employee Plan
	 	5.10.1
	 Employees
	 	5.10.1
	 Financial Statements
	 	5.5.1
	 Insurance
	 	5.24.1
	 Material Adverse Effect
	 	5.1
	 Material Permits
	 	5.9.1
	 Purchase Price
	 	2.2
	 Registered Intangible Property
	 	5.14.1
	 Related Person
	 	5.21
	 Sellers
	 	Introductory Paragraph
	 Shares
	 	Recitals

  

	1.3	 	Certain Rules of Interpretation 

  
 1.3.1 The name assigned to this Agreement and the section captions used herein are for convenience of reference only and shall not affect the
interpretation or construction hereof. Unless otherwise specified, (a) the terms “hereof,” “herein” and similar terms refer to this Agreement as a whole and (b) references herein to “Articles” or “Sections”
refer to articles or sections of this Agreement. 
  
 1.3.2 The use
of words in the singular or plural, or with a particular gender, shall not limit the scope or exclude the application of any provision of this Agreement to such Person or Persons or circumstances as the context otherwise permits. 
  
 1.3.3 Time is of the essence in the performance of the parties’
respective obligations under this Agreement. 
  
 1.3.4 Unless
otherwise specified, all references to money amounts are to U.S. currency. 
  

	1.4	 	Exhibits and Schedules 

  
 The exhibits and schedules to this Agreement, as listed below, are incorporated by this reference into this Agreement: 
  
 Company Disclosure Schedule 
 Schedule 2.1(i)—Shares to be Transferred 
 Schedule 2.1(ii) –List of Option Holders 
 Exhibit A—Employment Agreement with Brian Berson 
  

	1.5	 	Accounting Principles 

  
 All references, if any, to generally accepted accounting principles means to GAAP and all accounting terms, if any, not otherwise defined in this
Agreement have the meanings assigned to them in accordance with GAAP. 

 ARTICLE 2. 
  

Sale and Purchase of Shares; Purchase Price Adjustment; 
 Payment of the Purchase Price 
  

	2.1	 	Sale and Purchase 

  
 Subject to the terms and conditions of this Agreement, on the Closing Date, each Seller shall sell, transfer, convey, assign and deliver to Buyer, and
Buyer shall purchase, acquire and accept from each such Seller, all right, title and interest of such Seller, legal and equitable, beneficially and of record, in and to the number of Shares set forth opposite such Seller’s name on Schedule
2.1(i) hereto under the caption “Number of Shares Owned.” The originally issued certificates evidencing the Shares shall be delivered at the Closing to Buyer, free and clear of all Liens, accompanied by duly executed stock powers (endorsed
in blank), and any necessary stock transfer tax stamps affixed thereto. Set forth on Schedule 2.1(ii) is a list of all persons who hold options to acquire shares of Seller’s capital stock (the “Option Holders”). Prior to Closing, each
of the Option Holders may exercise their stock options. Upon exercise of his options, each exercising Option Holder would become a shareholder of the Company, and, as a result, would be treated as a Seller for purposes of this Agreement. 

 

	2.2	 	Purchase Price 

  
 The term the “Purchase Price” means the aggregate amount of $4,600,000. The Purchase Price shall be subject to adjustment, as described in
Section 2.3 below. 
  

	2.3	 	Adjustment of Purchase Price 

  
 The Purchase Price shall be increased on a dollar-for-dollar basis by an amount equal to the amount the Company’s Working Capital exceeds $1,100,000
on the Company’s unaudited, Closing Date balance sheet prepared in accordance with GAAP (excluding footnotes) (the “Closing Balance Sheet”), and shall be decreased on a dollar-for-dollar basis by an amount equal to the amount that the
Company’s Working Capital on the Closing Balance Sheet is less than $1,100,000. 
  

	2.4	 	Payments by Buyer 

  
 On the Closing Date, Buyer shall pay to Sellers an aggregate amount equal to the Purchase Price, as adjusted pursuant to Section 2.3, less the Escrow
Amount (the “Closing Date Payment”), by bank or cashier’s check or by wire transfer of immediately available funds, if so designated by a Seller. That portion of the Closing Date Payment payable to each Seller shall be agreed upon by
Buyer and the Company as of the Closing and as of the Closing shall be set forth opposite such Seller’s name on Schedule 2.1(i) hereto, under the caption “Portion of Closing Date Payment”. The Escrow Amount shall be placed in an
interest-bearing account at Silicon Valley Bank. The Escrow Amount shall be held in such account, subject to Article 13 hereof, until the expiration of the Claims Period. Promptly upon the expiration of the Claims Period, Buyer shall pay to Sellers
an aggregate amount equal to that portion of the Escrow Amount that has not been used to satisfy Buyer’s indemnification claims, or that is not then subject to an indemnification claim of Buyer made prior to the expiration of the Claims Period
(the 

 “Remaining Escrow Amount”). Each Seller shall receive such Seller’s pro-rata portion of
the Remaining Escrow Amount. 
  
 ARTICLE 3. 
  
 Closing 
  

	3.1	 	Closing of Sale and Purchase 

  
 Subject to the terms and conditions of this Agreement, the closing of the sale and purchase of the Shares pursuant to Article 2 hereof (the
“Closing”) shall take place at the offices of Ater Wynne LLP in Portland, Oregon, at                  a.m. on June 30, 2003, or such earlier or later
date as the parties may mutually agree upon in writing (the “Closing Date”). Closing shall be effective as of 12:01 a.m., July 1, 2003 (the “Effective Time”). 
  

	3.2	 	Deliveries by Sellers and the Company 

  
 At Closing, Sellers and the Company shall, as applicable, deliver to Buyer the following: 
  
 3.2.1 The certificates representing the Shares, duly endorsed in blank or with duly executed stock powers attached;

  
 3.2.2 Each of Seller’s Bring-Down Certificate;

  
 3.2.3 The Company’s Bring-Down Certificate; 

 
 3.2.4 An officer’s certificate certifying (i) the resolutions duly
adopted by the Board of Directors of the Company authorizing the Transaction and (ii) that Company is not and has not been a United States real property holding corporation, dated as of the Closing Date and in form and substance required under
Treasury Regulations Section 1.897-2(h) so that Buyer is exempt from withholding any portion of the Purchase Price thereunder; 
  
 3.2.5 The written resignations of all of the current officers and members of the Board of Directors of the Company, in each instance effective as of the
Effective Time; 
  
 3.2.6 Good standing certificates as of a date
not more than three (3) business days prior to the Closing Date issued by the Secretary of State (or other appropriate Governmental Authority) of the state of incorporation of the Company, and of each state in which the Company is qualified to do
business; 
  
 3.2.7 The original Corporate Records of the Company;
and 
  
 3.2.8 Such other agreements and documents, the delivery of
which is specified in Article 9 as a condition to Buyer’s closing obligations, and such other certificates and instruments as Buyer may reasonably request. 
  

3.2.9 The Employment Agreement executed by Berson. 

	3.3	 	Deliveries by Buyer 

  
 At the Closing, Buyer shall deliver the following: 
  
 3.3.1 To each Seller, such Seller’s portion of the Closing Date Payment as set forth opposite such Seller’s name on Schedule 2.1(i) and evidence
that the Escrow Amount has been deposited at Silicon Valley Bank; 
  
 3.3.2 To each Seller, Buyer’s Bring-Down Certificate; 
  
 3.3.3 To each Seller, a certified copy of the resolutions duly adopted by the Board of Directors of Buyer authorizing the Transaction; and 
  
 3.3.4 To each Seller, such agreements and documents, the delivery of which is specified in Article 9 as a condition to Seller’s and the
Company’s closing obligations, and such other certificates and instruments as Seller may reasonably request. 
  
 3.3.5 The Employment Agreement executed by Buyer. 
  
 ARTICLE 4. 
  
 Representations and Warranties of Sellers 
  
 Each Seller hereby represents and warrants to Buyer, severally and not jointly, that: 
  

	4.1	 	Authority Relative to this Agreement 

  
 4.1.1 This Agreement constitutes a valid and binding obligation of such Seller, enforceable against him in accordance with its terms except as enforcement
may be limited by bankruptcy, insolvency or other similar laws affecting the enforcement of creditors’ rights generally, and except that the availability of equitable remedies, including specific performance, is subject to the discretion of the
court in which any such Proceeding therefor may be brought. 
  
 4.1.2 Seller is not subject to or obligated under any indenture, loan document provision or any other contract, Permit, Order, lease, instrument, statute, law, ordinance, rule or regulation applicable to him or his properties or assets
which would be breached or violated, or under which there would be a default (with or without notice or lapse of time, or both), as a result of any aspect of the Transaction. 
  
 4.1.3 No Permit or Consent is necessary for the consummation by Seller of the Transaction. 
  

	4.2	 	No Broker, Etc. 

  
 No broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or commission in connection with the Transaction based
upon arrangements made by or on behalf of Seller. 

	4.3	 	Title to Shares 

  
 Seller is, and on the Closing Date will be, the lawful owner, beneficially and of record, of the Shares. Seller has, and on the Closing Date Seller will
have, good, valid and marketable title to the Shares, free and clear of all Liens, with full right and lawful authority to sell and transfer the Shares. 
  

	4.4	 	Transfer of Title 

  
 Upon payment for the Shares as provided in Section 2.4 and upon endorsement and delivery of certificates evidencing the shares to Buyer, Buyer will
acquire good, valid and marketable title thereto, free and clear of all Liens. 
  

	4.5	 	Other Negotiations 

  
 Except for the Transaction, there is no existing commitment or offer by Seller to sell or exchange all or any of the Shares or to merge or consolidate the
Company and/or its Subsidiaries with or into any other Person, and there are no pending negotiations for any such sale, exchange, merger or consolidation. 
  

	4.6	 	No Untrue Statement or Omission 

  
 No representation or warranty made by Seller contained in this Article 4 of this Agreement and no statement by Seller and/or an Authorized Representative
of Seller contained in any certificate, list, exhibit or other instrument specified in this Agreement, contains (or will contain when made) any untrue statement of a material fact or omits (or will omit when made) to state a material fact necessary
to make the statements contained therein, in light of the circumstances under which they were (or will be made), not misleading. 
  
 ARTICLE 5. 
  
 Representations and Warranties of the Company 
  
 The Company does hereby represent and warrant to Buyer that, except as set forth in the Company Disclosure Schedule: 
  

	5.1	 	Organization and Qualification 

  
 The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of California and has the corporate power
to carry on its business as it is now being conducted. The Company is qualified to conduct business and is in good standing in the states, countries and territories listed in Section 5.1 of the Company Disclosure Schedule. The Company is duly
qualified as a foreign corporation to do business, and is in good standing, in each jurisdiction where the character of its properties owned or held under lease or the nature of its activities makes such qualification necessary, except where the
failure to be so qualified will not have an effect on the business, properties, assets, condition (financial or otherwise), liabilities or operations of the Company, taken as a whole in an amount in excess of $150,000 (a “Material Adverse
Effect”). 

	5.2	 	Capitalization 

  
 The authorized capital stock of the Company consists of 1,500,000 shares of common stock, no par value, of which only the Shares are outstanding as of the
date hereof, and 500,000 shares of preferred stock, no par value, 500,000 of which have been designated as Series A Preferred Stock and 415,172 of which are outstanding as of the date hereof. The Shares were duly authorized, validly issued, fully
paid and nonassessable. No shares of the Company’s capital stock are held in the Company’s treasury. As of the date hereof, there are no bonds, debentures, notes or other evidences of indebtedness having the right to vote on any matters on
which the Company’s shareholders may vote issued or outstanding. There are no subscriptions, options, warrants, calls or other rights, agreements or commitments outstanding which obligate the Company to issue, deliver, sell or otherwise cause
to become outstanding any of its capital stock or debt securities, or which obligate the Company to grant, extend or enter into any such option, warrant, call or other such right, agreement or commitment. There are no outstanding or authorized stock
appreciation, phantom stock, profit participation or similar rights with respect to the Company. 
  

	5.3	 	Subsidiaries 

  
 The Company has no Subsidiaries, and has no equity investment or other interest in and has not made advances to, any Person. 
  

	5.4	 	Authority Relative to this Agreement 

  
 5.4.1 The Company has the corporate power to enter into this Agreement and to carry out its obligations hereunder. 
  
 5.4.2 The Transaction has been duly and validly authorized by all necessary
corporate action on the part of the Company. No other corporate proceedings on the part of the Company are necessary to authorize the Transaction. 
  
 5.4.3 This Agreement constitutes a valid and binding obligation of the Company, enforceable against the Company in accordance with its terms except as
enforcement may be limited by bankruptcy, insolvency or other similar laws affecting the enforcement of creditors’ rights generally, and except that the availability of equitable remedies, including specific performance, is subject to the
discretion of the court in which any such Proceeding may be brought. 
  
 5.4.4 Neither the execution, delivery or performance of this Agreement, or any other agreement relating hereto, or any other aspect of the Transaction, will: (a) conflict with, or violate any provision of, or constitute or result in a
breach or default (with or without notice, lapse of time or both) or give rise to a right of termination, cancellation or acceleration of any obligation or the loss of any material benefit, under (i) any charter or bylaw of the Company, or (ii) any
indenture, loan document provision or other Contract, Permit, Order, statute, law, ordinance, rule or regulation applicable to the Company or its properties or assets, other than immaterial Contracts; or (c) result in or require the imposition of
any Lien with respect to, or upon, the Company or its properties or assets. 

 5.4.5 No Permit or Consent is necessary for the consummation by the Company of the Transaction.

  

	5.5	 	Financial Statements; Absence of Undisclosed Liabilities 

  
 5.5.1 The Company has previously furnished Buyer with true and complete copies of it unaudited balance sheet as of May 31, 2003 and income statement for
the one and five-month periods ended May 31, 2003. All such balance sheets and statements are collectively referred to in this Agreement as the “Financial Statements.” 
  
 5.5.2 The Financial Statements are in accordance with the books and records of the Company and fairly present, in all
material respects, the financial position, results of operations and cash flows of the Company as of the dates and for the periods indicated, in each case in conformity with GAAP consistently applied, except as otherwise indicated in such Financial
Statements, and in the case of unaudited Financial Statements, subject to normal year-end adjustments, the absence of footnotes and other disclosures associated with an audited report. The Financial Statements provide fully for all material fixed
and non-contingent liabilities of the Company and disclose or provide fully for all material contingent liabilities of a type required to be disclosed or provided for in financial statements in accordance with GAAP. All prepaid expenses, if any,
included as assets of the Company represent payments theretofore made by the Company, the benefit and advantage of which may be obtained or enjoyed by the Company after the Closing Date.  
  
 5.5.3 The Company did not have any liability of any nature, whether accrued,
absolute, contingent or otherwise, asserted or unasserted, known or unknown (including without limitation, liabilities as guarantor or otherwise with respect to obligations of others), or liabilities for taxes due or then accrued or to become due or
contingent or potential liabilities relating to activities of the Company or the conduct of its business, except the liabilities (i) stated or specifically adequately reserved against on the Financial Statements, (ii) reflected in Section 5.5 of the
Company Disclosure Schedule, or (iii) immaterial liabilities incurred in the ordinary course of business of the Company which are not required to be reflected in the Financial Statements or the notes thereto under GAAP. 
  

	5.6	 	Absence of Certain Changes or Events 

  
 Since December 31, 2002 there has not been: 
  
 5.6.1 any material adverse change in the business, financial condition, liabilities (net of any corresponding increase in assets), results of operations
or, to the Company’s Knowledge, prospects of the Company, other than changes in laws or regulations of general applicability; 
  
 5.6.2 any damage, destruction or loss, whether covered by insurance or not, materially and adversely affecting the financial condition, properties or
businesses of the Company; 
  
 5.6.3 any declaration, payment or
setting aside for payment of any dividend or other distribution (whether in cash, stock or property) with respect to the capital stock of the Company 

 
or any direct or indirect redemption, purchase or other acquisition of any shares of capital stock of the Company; 
  
 5.6.4 any increase in the compensation of or granting of bonuses payable or
to become payable by the Company to any officer or Employee other than annual increases or bonuses consistent with the past practices of the Company or pursuant to the terms and provisions of any Employee Contracts and not exceeding, for any such
officer or Employee, ten percent (10%) of such officer’s or Employee’s compensation for fiscal year 2002; 
  
 5.6.5 any accrual or arrangement for or payment by the Company of severance bonuses or special compensation of any kind to any director, officer or
Employee; 
  
 5.6.6 any capital expenditures by the Company, or
commitments therefor, aggregating more than $25,000; 
  
 5.6.7 any
sale or other transfer by the Company of any material tangible or intangible asset, any granting of a Lien relating to any such material asset, any lease of real property or equipment, or any cancellation of any debt or claim, except in the ordinary
course of business; 
  
 5.6.8 any incurrence by the Company of any
obligation or liability (absolute or contingent), except current obligations and liabilities incurred in the ordinary course of business in amounts and on terms consistent with past practices; 
  
 5.6.9 any material change in accounting methods or principles or any
revaluation of any of the assets of the Company (including, without limitation, any change in depreciation or amortization policies or rates); 
  
 5.6.10 any amendment or termination of any Contract or Permit to which the Company is a party, except in the ordinary course of business; 
  
 5.6.11 any loan by the Company to any Person or guaranty by the Company of
any loan; 
  
 5.6.12 any waiver or release of any material right
or claim of the Company; 
  
 5.6.13 any commencement or written
notice or, to the Company’s Knowledge, threat of commencement of any Proceeding against or investigation of the Company; or 
  
 5.6.14 any labor trouble or claim of wrongful discharge or other unlawful labor practice or action involving the Company. 
  
 5.6.15 to the Company’s Knowledge, any other event or condition of any
character that has or might reasonably have a Material Adverse Effect; 
  

	5.7	 	Litigation 

  
 There is no Proceeding pending or, to the Company’s Knowledge, threatened against the Company which, either alone or in the aggregate, could
reasonably be expected to have a 

 
Material Adverse Effect, nor is there any Order outstanding against the Company having, or which in the future could reasonably be expected to have, either
alone or in the aggregate, any Material Adverse Effect. 
  

	5.8	 	Taxes 

  
 5.8.1 The Company has duly filed all Tax Returns with the proper Governmental Authority, and all such Tax Returns were correct and complete in all
material respects. 
  
 5.8.2 All Taxes due and owing by the
Company (whether or not shown on any Tax Return) have been paid. The Company is not currently the beneficiary of any extension of time within which to file any Tax Return. No deficiencies have been or, to the Company’s Knowledge, will be
assessed with respect to Taxes required to be paid by the Company for any Tax Period (or portion thereof) ending on or prior to the Closing Date, and no notice of deficiency or assessment has been received. 
  
 5.8.3 All Taxes which the Company has been required to collect or withhold
have been duly collected or withheld and, to the extent required when due, have been or will be duly paid to the proper Governmental Authority. 
  
 5.8.4 None of the Company’s Tax Returns have been examined by any Governmental Authority; the Company has no Knowledge of any pending audits of such
Tax Returns; there are no claims which have been or, to the Company’s Knowledge, may be asserted relating to such Tax Returns; and no notice of audit or examination with respect to such Tax Returns has been received. 
  
 5.8.5 The unpaid Taxes the Company (A) did not, as of the date of the
Financial Statements, exceed the reserve for Tax liability (rather than any reserve for deferred Taxes established to reflect timing differences between book and Tax income) set forth on the Financial Statements and (B) will not exceed that reserve
as adjusted for operations and transactions through the Closing Date in accordance with the past custom and practice of the Company in filing its Tax Returns. 
  

5.8.6 The Company is not a party to any Tax sharing agreement or similar arrangement with any other party. 
  
 5.8.7 There are no federal, state, local or foreign Liens for Taxes upon any
of the properties or assets of the Company, and there are no unpaid Taxes which are or could become a Lien on the properties or assets of the Company, except for current Taxes not yet due and payable. 
  
 5.8.8 There have been no waivers or extensions of any statute of limitations
by the Company with respect to any Governmental Authority responsible for assessing or collecting Taxes. 
  
 5.8.9 Correct and complete copies of all of the Company’s Tax Returns which have been requested by Buyer or any Authorized Representative, have been
provided to Buyer. 

 5.8.10 The Company has not agreed or been required to make any adjustment under Section 481(a) of the
Code by reason of a change in accounting method or otherwise, except for adjustments under Section 481(a) which have been fully recognized on or before the Closing Date. 
  
 5.8.11 The Company has not filed a consent under Section 341(f) of the Code concerning collapsible corporations. 

 
 5.8.12 The Company has not been a member of an Affiliated Group filing a
consolidated federal income Tax Return. 
  
 5.8.13 The Company has
not been the “distributing corporation” within the meaning of Section 355(c)(2) of the Code with respect to a transaction described in Section 355 of the Code. 
  
 5.8.14 The Company has not been a United States real property holding corporation within the meaning of Section 897(c)(2) of
the Code during the applicable period specified in Section 897(c)(1)(a)(ii) of the Code. 
  
 5.8.15 The Company is not a party to any joint venture, partnership, or other arrangement or contract which could be treated as a partnership for federal income tax purposes. 
  
 5.8.16 The Company is not, and has never been an “S corporation”
within the meaning of Section 1361 of the Code. 
  
 5.8.17 None of
the assets of the Company is “tax-exempt use property” within the meaning of Section 168(h) of the Code. None of the assets of the Company is property which the Company is required to treat as being owned by any other person pursuant to
the so-called “safe harbor lease” provisions of former Section 168(f)(8) of the Code. 
  

	5.9	 	Compliance with Permits, Applicable Laws and Agreements 

  
 5.9.1 The Company holds all Permits, the failure of which to hold would have a Material Adverse Effect (the “Material Permits”). The Company
Disclosure Schedule sets forth a true and complete list of all Material Permits. The Company is in compliance with the terms of the Material Permits, except for such failures to comply which, individually or in the aggregate, would not have a
Material Adverse Effect. 
  
 5.9.2 To the Company’s
Knowledge, the business of the Company is being conducted in compliance with all laws, ordinances and regulations of all Governmental Authorities (including, but not limited to, laws pertaining to employment and employment practices, terms and
conditions of employment, wages and hours, safety, health, fire prevention and other matters), except for possible violations which individually or in the aggregate do not and would not have a Material Adverse Effect. 
  
 5.9.3 The Company is not in default (and not in a circumstance which, with
notice or lapse of time, or both, would constitute a default) under any agreement or instrument to which it is a party, whether or not such default has been waived, except for any such default which, alone or in the aggregate with other such
defaults, would not have a Material Adverse Effect. 

 5.9.4 The provisions of this Section 5.9 shall not be construed or applied to narrow or otherwise
restrict the scope of any other representations and warranties in this Article 5. 
  

	5.10	 	Employee Plans and Benefit Arrangements 

  
 5.10.1 The Company Disclosure Schedule sets forth a true and complete list of all the following: (i) each “employee benefit plan,” as such term
is defined in Section 3(3) of ERISA (each, an “Employee Plan”), and (ii) each other plan, program, policy, contract or arrangement providing for bonuses, pensions, deferred compensation, stock or stock-related awards, severance pay, salary
continuation or similar benefits, hospitalization, medical, dental or disability benefits, life insurance or other employee benefits, or compensation to or for any current or former officers, directors, employees, agents, or independent contractors
of the Company (“Employees”) or any beneficiaries or dependents of any Employee, whether or not insured or funded, (A) pursuant to which the Company has any material liability or (B) constituting an employment or severance agreement or
arrangement with any officer or director of the Company (each, a “Benefit Arrangement”). The Company has provided to Buyer with respect to each Employee Plan and Benefit Arrangement: (i) a true and complete copy of all written documents,
including amendments, comprising such Employee Plan or Benefit Arrangement or, if there is no such written document, an accurate and complete description of such Employee Plan or Benefit Arrangement; (ii) all Form 5500s or Form 5500-Cs (including
all schedules thereto), if applicable; (iii) the most recent financial statements and actuarial reports, if any; (iv) the summary plan description currently in effect and all material modifications thereof, if any; and (v) the most recent IRS
determination letter, if any; and (vi) filings with the Department of Labor, including, but not necessarily limited to, “top hat” filings pursuant to Department of Labor Regulation Section 2520.104-23, if any. Any such Employee Plans and
Benefit Arrangements not so provided are not in the aggregate material to the Company. 
  
 5.10.2 (i) To the Company’s Knowledge, the Company has established and maintained in all material respects each Employee Plan and Benefit Arrangement in accordance with its terms and in material compliance with
all applicable laws, including, but not limited to, ERISA and the Code; and (ii) to the Company’s Knowledge, any third party trustee has complied in all material respects in the maintenance of each Employee Plan and Benefit Arrangement with all
applicable laws and requirements. Neither the Company nor any of its Employees, nor, to the best Knowledge of the Company, any other disqualified Person or party-in-interest with respect to any Employee Plan, has engaged directly or indirectly in
any “prohibited transaction,” as such term is defined in Section 4975 of the Code or Section 406 of ERISA, with respect to which the Company could have or has any material liability. 
  
 5.10.3 There are no pending or, to the Company’s Knowledge, threatened
Proceedings by any Employees or plan participants or the beneficiaries, spouses or representatives of any of them, against any Employee Plan or Benefit Arrangement, the assets held thereunder, the trustee of any such assets, or the Company relating
to any of the Employee Plans, other than ordinary and usual claims for benefits by participants or beneficiaries. Furthermore, there are no pending, or to the Company’s Knowledge, threatened Proceedings by any Governmental Authority of or
against any Employee Plan or Benefit Arrangement, the trustee of any assets held thereunder, or the Company relating to any of the Employee Plans or Benefit Arrangements. 

 5.10.4 No Employee Plan has been the subject of an IRS or Department of Labor audit. There are no pending
Proceedings or, to the Company’s Knowledge, threatened Proceedings in which the “qualified” status of any Employee Plan is at issue and in which revocation of the determination letter has been threatened. Each such Employee Plan has
not been amended or operated, since the receipt of the most recent determination letter, in a manner that would materially adversely affect the “qualified” status of the Employee Plan. No distributions have been made from any of the
Employee Plans that would violate in any material respect the restrictions under Treas. Reg. Section 1.401(a)(4)-5(b), and none will have been made by the Closing Date. To the Knowledge of the Company, there has been no termination, partial or
otherwise, as defined in Section 411(d) of the Code and the regulations thereunder, of any Employee Plan. 
  
 5.10.5 The Company has made all required contributions under each Employee Plan on a timely basis or, if not yet due, adequate accruals therefore have
been provided for in the Financial Statements. 
  
 5.10.6 The
Transaction (either alone or together with any additional or subsequent events) does not constitute an event under any Employee Plan, Benefit Arrangement or individual Employee Contract, that may result in any payment (whether of severance pay or
otherwise), restriction or limitation upon the assets of any Employee Plan or Benefit Agreement, acceleration of payment or vesting, increase in benefits or compensation, or required funding, with respect to any Employee, or the forgiveness of any
loan or other commitment of any Employee. 
  
 5.10.7 The Company
is not a party to any agreement, contract, arrangement or plan that has resulted or would result, separately or in the aggregate, in the payment of any “excess parachute payments” within the meaning of Section 280G of the code or any
similar provision of foreign, state or local law. 
  
 5.10.8 No
Employees and no beneficiaries or dependents of Employees are or may become entitled under any Employee Plan or Benefit Arrangement to post-employment welfare benefits of any kind, including, without limitation, death or medical benefits, other than
coverage mandated by Section 4980B of the Code. 
  
 5.10.9 The
Employee Plans that are group health plans (as defined for the purposes of Section 4980B of the Code and Part 6 of Subtitle B of Title I of ERISA, and all regulations thereunder, (such provisions of law and regulations are hereinafter referred to as
“COBRA”)) have complied in all material respects at all times during the past three (3) years, and will continue to comply in all material respects through the Effective Time, with requirements of COBRA to provide health care continuation
coverage to qualified beneficiaries who have elected, or may elect to have, such coverage. The Company and its agents who administer any of the Employee Plans or Benefit Arrangements, have complied in all material respects at all times during the
past three (3) years and will continue to comply in all material respects through the Effective Time, with the notification and written notice requirements of COBRA. There are no pending or, to the Company’s Knowledge, threatened Proceedings by
any current Employee, former Employee, participants or by the beneficiary, dependent or representative of any such person, involving the failure of any Employee Plan or Benefit Arrangement or of any other group 

 
health plan ever maintained by the Company to comply with the health care continuation coverage requirements of COBRA. 
  
 5.10.10 There are no agreements with, or pending petitions for recognition
of, a labor union or an association as the exclusive bargaining agent for any of the Employees of the Company; no such petitions have been pending at any time within two years of the date of this Agreement, and, to the Company’s Knowledge,
there has not been any organizing effort by any union or other group seeking to represent any Employees of the Company as their exclusive bargaining agent at any time within two years of the date of this Agreement. There are no labor strikes, work
stoppages or other labor troubles, other than routine grievance matters, now pending or, to the Company’s Knowledge, threatened against the Company. 
  

	5.11	 	Employee Contracts and Non-Disclosure Agreements 

  
 The Company has provided Buyer with copies of all Employee Contracts for the current Employees. All of the Employees without Employment Contracts are
“at-will” employees. 
  

	5.12	 	Real Property 

  
 5.12.1 The Company Disclosure Schedule contains a true, complete and correct list of the Real Property. As applicable (i) the Company has title to the
Real Property currently owned by it, (ii) the Company enjoys peaceful and undisturbed possession of the Real Property currently leased by it, (iii) the interests of the Company in the Real Property currently owned, leased or occupied by the Company
(“Current Real Property”) are not subject to any commitment for sale or use by any Person other than the Company, (iv) the interests of the Company in the Current Real Property are not subject to any Lien which in any material respect
interferes with or impairs the value, transferability or present and continued use thereof in the usual and normal conduct of the Company’s business, (v) no labor has been performed or material furnished on behalf of or at the request of the
Company for the Real Property for which a mechanic’s or materialman’s Lien or Liens, or any other Lien, has been or could be claimed by any Person on the Company’s interest in the Current Real Property, (vi) to the Knowledge of the
Company, the Company’s use of the Current Real Property is in compliance in all material respects with all applicable zoning laws, and (vii) the Company has not received any written notice from any Governmental Authority that the Current Real
Property, or any current use thereof, is not in compliance in all material respects with all applicable building code and other laws (other than zoning laws). 
  

5.12.2 There are no condemnation or eminent domain Proceedings pending or, to the Knowledge of the Company, contemplated or threatened, against the
Current Real Property or any part thereof, and the Company has no Knowledge of any desire of any Governmental Authority to take or use the Current Real Property or any part thereof. There are no existing or, to the Company’s Knowledge,
contemplated or threatened, general or special assessments affecting the Company’s interests in the Current Real Property or any portion thereof. The Company has not received notice of any pending or threatened Proceeding before any
Governmental Authority which relates to the ownership, maintenance, use or operation of the Company’s interest in the Real Property, nor does the Company have Knowledge of any fact which might give rise to any such Proceeding. 

 5.12.3 To the Company’s Knowledge, the buildings and improvements on the Current Real Property
(including, without limitation, the heating, air conditioning, mechanical, electrical and other systems used in connection therewith) are in a reasonable state of repair, have been reasonably well maintained and are reasonably free from infestation
by termites, other wood destroying insects, vermin and other pests. There are no repairs or replacements exceeding $5,000 in the aggregate for all Current Real Property or $2,500 for any single repair or replacement which are currently planned or
which, to the Knowledge of the Company, should be made in order to maintain said buildings and improvements in a reasonable state of repair. 
  
 5.12.4 Each parcel of the Current Real Property has direct and unobstructed access to adequate electric, gas, water, sewer and telephone lines, all of
which are adequate for the uses to which such property is currently devoted by the Company. 
  

	5.13	 	Tangible Personal Property 

  
 5.13.1 The Company Disclosure Schedule lists each item of Tangible Personal Property owned by the Company having an original book value in excess of
$5,000, and the Company Disclosure Schedule lists each item of Tangible Personal Property leased by the Company (other than individual leases of office equipment having an annual rental of less than $5,000). 
  
 5.13.2 The Tangible Personal Property constitutes substantially all tangible
personal property used by the Company to conduct the business of the Company. All of the Tangible Personal Property is located at the Real Property and there is no Tangible Personal Property located at any of the Real Property which is not owned or
leased by the Company. 
  
 5.13.3 To the Company’s’
Knowledge, the Tangible Personal Property is, in all material respects, in reasonable working order and adequate for its intended use, ordinary wear and tear excepted. There are no repairs or replacements exceeding $10,000 in the aggregate for all
Tangible Personal Property or $10,000 for any single item of Tangible Personal Property which are currently planned by the Company or which, to the Company’s Knowledge, should be made in order to maintain the Tangible Personal Property in
reasonable working order. 
  

	5.14	 	Intangible Property 

  
 5.14.1 The Company Disclosure Schedule contains a true, correct and complete list of: (i) United States federal, state and foreign grants, registrations
and applications existing or outstanding with respect to the Intangible Property owned by the Company, including, without limitation, all applicable grants, registration, application or serial numbers and other filing or recording information and
all expiration dates pertaining thereto (the “Registered Intangible Property”); (ii) all license agreements relating to Intangible Property to which the Company is a party; and (iii) all other trademarks, tradenames and service marks which
constitute Intangible Property. 
  
 5.14.2 (i) The Registered
Intangible Property is owned exclusively by the Company and, to the Company’s Knowledge, is used exclusively by the Company, (ii) the Registered Intangible Property is free and clear of all Liens, (iii) there is no pending or, to the
Company’s Knowledge, threatened Proceeding by or before any Governmental Authority alleging any 

 
infringement or other violation of any right of any third Person in or to the Intangible Property, (iv) there is not now, and there has not been during the
past five years, any asserted claim of infringement or other violation of any other intellectual property right of any third Person resulting from the conduct of the Company, and the Company has no Knowledge that any such infringement or violation
exists or will be alleged, (v) the Company has no Knowledge of any activity by any third Person which does or might constitute an infringement or other violation of the Company’s rights in or to any Intangible Property, (vi) the Company has not
entered into any license, consent, indemnification, forbearance to sue, settlement agreement or cross-licensing arrangement with any Person relating to the Intangible Property or any intellectual property right of any third Person, (vii) there are
no agreements relating to and materially affecting any Intangible Property of the Company or the use or ownership thereof, including, without limitation, license agreements, confidentiality and non-disclosure agreements, assignments or agreements to
assign, development agreements, settlement agreements and other related agreements; and (viii) the Company is unaware of any information which would or might materially adversely affect any of the Intangible Property or render any of the Intangible
Property invalid or unenforceable. 
  
 5.14.3 The Intangible
Property identified in the Company Disclosure Schedule constitutes all intangible property used by the Company to operate, or necessary for the operation of, the business of the Company as currently conducted. The consummation of the transactions
contemplated hereby will not result in the loss or impairment of any of the Company’s rights in the Intangible Property. No shareholder or Employee of the Company owns, directly or indirectly, in whole or in part, any rights in any of the
Intangible Property. The Company has the right to use its corporate name and, each tradename or assumed name under which it conducts its business. No Person has asserted to the Company or, threatened to assert to the Company, any claim or made any
demand to the right to any such corporate name or any such tradename or assumed name or the right to use any such name, and no Proceeding is pending or, to the Company’s Knowledge, threatened, which challenges the right of the Company with
respect thereto. To the Company’s Knowledge, no other Person is using any such names as a corporate name, tradename or assumed name. 
  

	5.15	 	Title to Assets 

  
 The Company has good and marketable title to all of its assets as described in the most recent balance sheet contained in the Financial Statements, free
and clear of all Liens, except as otherwise set forth in the Company Disclosure Schedule. 
  

	5.16	 	Inventories and Receivables 

  
 5.16.1 The inventories of the Company at May 31, 2003 are shown on the balance sheet at May 31, 2003 referred to in Section 5.5. Such inventories and the
inventories acquired by the Company subsequent to the date of such balance sheet consist of items of a quality and quantity usable and salable in the normal course of the Company’s business and not in excess of its reasonable requirements. The
values of obsolete materials and materials below standard quality have been written down on its books of account to realizable market value, or adequate reserves have been provided therefor in accordance with GAAP. All items included in such
inventories are owned by the Company, except for sales made subsequent to the date of such 

 
balance sheet in the ordinary course of business, for all of which either the purchaser has made full payment or the purchaser is obligated to make payment
and such obligation is an asset of the Company in accordance with GAAP. All inventories of raw materials and finished goods are carried on the May 31, 2003 balance sheet referred to in Section 5.5 and are carried on the books at the lower of cost
(first in-first out) or market. The inventories are not in excess of the Company’s reasonable requirements. 
  
 5.16.2 All receivables of the Company shown on the balance sheet at May 31, 2003 referred to in Section 5.5 and all receivables of the Company that have
arisen subsequent to the date of such balance sheet arose in the ordinary course of business, and the aggregate amounts thereof are collectible at the net recorded value thereof, and are carried at values determined in accordance with GAAP
consistently applied. The Company has established reserves for doubtful accounts only in accordance with GAAP and to the extent reflected in the Financial Statements. None of the receivables of the Company is subject to any stated claim of offset,
recoupment, setoff or counterclaim, and the Company has no Knowledge of any facts or circumstances that would give rise to any such claim. No receivables are contingent upon the performance by the Company of any obligation or contract. No agreement
for deduction or discount has been made with respect to any of such receivables. 
  
 5.16.3 No agreement or commitment has been made with or to any customer by the Company to provide price or payment concessions to such customer in any future sale or sales to such customer. 
  

	5.17	 	Contracts 

  
 5.17.1 The Company Disclosure Schedule contains a true and correct list of the Contracts. True and correct copies of all of the Contracts have been
delivered to Buyer. Each of the Contracts is valid, binding and enforceable by the Company in accordance with its terms. Each of the Contracts was entered into in the ordinary course of business and is not subject to termination except in accordance
with its terms or except as provided by applicable law. 
  
 5.17.2
Each of the Contracts is in full force and effect, all fees, rents, royalties and other payments due thereunder are current. To the Company’s Knowledge, neither the Company nor any other party is in material default under any Contract or in
material breach thereof. The Company has not during the past five years sought or obtained any waiver of or under any provision of any Contract, including without limitation, any waiver from any lender or other creditor of any term, condition or
default under any Contract (other than waivers obtained which have no continuing Material Adverse Effect). To the Company’s Knowledge, there exists no event or occurrence, condition or act which constitutes or, with the giving of notice, the
lapse of time or the happening of any future event or condition, would become, a material default by the Company or any other party under any of the Contracts. The Company has no Knowledge of any threatened default by any party thereto under any of
the Contracts. 
  
 5.17.3 The Company is not a party to any
Contract which: (i) was not entered into in the ordinary course of business; (ii) requires the Company to make any capital expenditure in excess of $5,000, or (iii) has a term of greater than one year (other than Contracts which are cancelable
without penalty in sixty (60) days or less). 

	5.18	 	Suppliers and Customers 

  
 To the Company’s Knowledge, no supplier or customer intends to terminate its relationship with the Company, nor does the Company have Knowledge that
any material problem or dispute with any supplier or customer exists. The Company has no reason to believe that the consummation of the Transaction would or might disrupt any existing relationships with any supplier or customer that would have a
Material Adverse Effect on the Company. 
  

	5.19	 	Products; Product Warranties 

  
 5.19.1 A form of each product warranty relating to products designed, developed, produced, manufactured, distributed or sold by the Company at any time
during the five-year period preceding the date of this Agreement is attached to or set forth in the Company Disclosure Schedule. 
  
 5.19.2 The Company Disclosure Schedule sets forth a true and complete list of (i) all products designed, developed, produced, manufactured, marketed,
distributed or sold by the Company with respect to which claims in excess of $10,000 have been made at any time during the past five (5) years, and (ii) all Proceedings (whether completed or pending) at any time during the past five (5) years making
claims with respect to any such product. 
  
 5.19.3 The Company
has no Knowledge of any material defect in design, materials, manufacture or otherwise in any products designed, developed, produced, manufactured, distributed or sold by the Company during the past five (5) years. 
  
 5.19.4 Except as provided in any of the standard product warranties described
in this Section 5.19, the Company has not sold any products or services which are subject to an extended warranty beyond twelve (12) months and which warranty has not yet expired. 
  

	5.20	 	Environmental Matters 

  
 5.20.1 To the Company’s Knowledge, the Company’s assets, properties and operations are now and at all times have been in compliance in all
material respects with all applicable Environmental Laws. To the Company’s Knowledge, there has been and is no Release or threatened Release of any Hazardous Material at, on, under, in, to or from any of the Real Property which relates to the
Company’s operations and activities at the Real Property or otherwise. The Company has not received any notice of alleged, actual or potential responsibility for, or any Proceeding regarding, the presence, Release or threatened Release of any
Hazardous Material at any location, whether at the Real Property or otherwise, which Hazardous Materials were allegedly manufactured, used, generated, processed, treated, stored, disposed or otherwise handled at or transported from the Real Property
or otherwise. 
  
 5.20.2 The Company has not received any notice
of any Proceeding by any Person alleging any actual or threatened injury or damage to any Person, property, natural resource or the environment arising from or relating to the presence, Release or threatened Release of any Hazardous Materials at,
on, under, in, to or from the Real Property or in connection with any operations or activities thereat, or at, on, under, in, to or from any other property. Neither the 

 
Real Property nor any operations or activities thereat is or has been subject to any Proceeding, Order or Lien relating to any applicable Environmental Laws.

  
 5.20.3 To the Company’s Knowledge, there are no
underground storage tanks presently located at the Real Property and there have been no Releases of any Hazardous Materials from any underground storage tanks or related piping at the Real Property. To the Company’s Knowledge, there are no PCBs
located at, on or in the Real Property. To the Company’s Knowledge, there is no asbestos or asbestos-containing material located at, on or in the Real Property. 
  

	5.21	 	Transactions with Certain Persons 

  
 Except as disclosed in this Agreement, (i) no Relevant Insider, nor any Person related to any Relevant Insider by blood or marriage, nor any corporation,
partnership, trust or other entity in which any such Person has a substantial interest as a shareholder, officer, director, trustee, partner or otherwise, or any Affiliate of any of the foregoing (each, a “Related Person”), is presently or
at any time during the past two years has been a party to any material transaction (other than normal compensation arrangements for Employees) of the Company, including, without limitation, any contract, agreement or other arrangement (A) providing
for the furnishing of material services to or by, (B) providing for the rental or sale of real or personal property to or from, or (C) otherwise requiring payments of an amount in excess of $500 annually to or from (other than for services as
Employees) such Related Person and (ii) no Relevant Insider is related to any other Relevant Insider by blood or marriage. There is no outstanding amount in excess of $500 owing (including, without limitation, pursuant to any advance, note or other
indebtedness instrument) from the Company to any Related Person or from any Related Person to the Company. Each of the Related Person transactions set forth in the Company Disclosure Schedule, if any, was entered into between the Company and the
Related Person on an arms length basis on terms no less favorable to the Company than could be obtained from an unrelated third party. 
  

	5.22	 	Absence of Certain Payments 

  
 Neither the Company nor, to the Company’s Knowledge, any of its Employees or other Persons acting on behalf of the Company, or any Affiliate of any
of the foregoing, (i) engaged in any activity, prohibited by the United States Foreign Corrupt Practices Act of 1977 or any other similar law, regulation or Order of any Governmental Authority or (ii) without limiting the generality of the preceding
clause (i), used any corporate or other funds for unlawful contributions, payments, gifts or entertainment, or made any unlawful expenditures relating to political activity to officials of any Governmental Authority. Neither the Company nor, to the
Company’s Knowledge, any of its shareholders, Employees or other Persons acting on behalf of any of them, or any Affiliate of any of the foregoing, has accepted or received any unlawful contributions, payments, gifts or expenditures.

  

	5.23	 	Records 

  
 5.23.1 No Business Records for the past five (5) years relating to the Company have been destroyed, and all such Business Records are available upon
request, subject to applicable 

 
laws and/or contractual prohibitions or limitations. In addition, no Business Records relating to periods prior to such five-year period which the Company is
required to maintain (including, without limitation, personnel records and information relevant to current or future tax filings) have been destroyed, and all such Business Records are available upon request, subject to applicable laws and/or
contractual prohibitions or limitations. 
  
 5.23.2 Complete and
correct copies of the Corporate Records of the Company have been delivered to Buyer as part of the Company Disclosure Schedule. The minutes contain a complete and accurate record of those meetings and significant actions of shareholders and
directors, and of any executive committee or other committee of the shareholders or board of directors, for which minutes were prepared or for which actions were approved by unanimous written consent and for which no meetings were held. The stock
records of the Company are complete and accurate and contain a complete and accurate record of all share transactions of the Company from the date of its incorporation. 
  

	5.24	 	Insurance 

  
 5.24.1 The Company Disclosure Schedule contains a complete and accurate list of (i) all current policies or binders of fire, product liability, automobile
liability, general liability, worker’s compensation and other forms of insurance (showing as to each policy or binder the carrier, policy number, coverage limits, expiration dates, annual premiums, deductibles, whether coverage is
“occurrence” or “claims made” and a general description of the type of coverage provided and policy exclusions) maintained by the Company and relating to the Company’s properties and assets or personnel (collectively, the
“Insurance”) and (ii) all other “occurrence” basis insurance policies maintained by the Company at any time during the past five (5) years with respect to the business. 
  
 5.24.2 All of the Insurance is, and from the date of this Agreement to the
Effective Time will be, sufficient for compliance in all material respects with all requirements of applicable law and of all contracts to which the Company is a party. The Company is not in default in any material respect under any of the
Insurance, and the Company has not failed to give any notice or to present any claim of which the Company is aware under any of the Insurance in a due and timely fashion. To the Company’s Knowledge, there are no facts upon which any insurer
might be justified in reducing coverage or increasing premiums more than is normal or customary on any of the existing Insurance. No notice of cancellation, termination, reduction in coverage or increase in premium (other than reductions in coverage
or increases in premiums in the ordinary course) has been received with respect to any of the Insurance, and all premiums with respect to any of the Insurance have been timely paid. 
  
 5.24.3 To the Company’s Knowledge, the Company has not experienced claims in excess of current Insurance coverage, and
the Insurance is in full force and effect and will be kept in full force and effect through the Closing Date. To the Company’s Knowledge, there will be no retrospective insurance premiums or charges on or with respect to any of the Insurance
for any period or occurrence through the Closing Date. 

	5.25	 	Bank Accounts 

  
 The Company Disclosure Schedule contains (i) a true, complete and correct list of all bank accounts and safe deposit boxes maintained by the Company and
all persons entitled to draw thereon, to withdraw therefrom or with access thereto, (ii) a description of all lock box arrangements for the Company, (iii) a true, complete and correct list of all powers of attorney executed by the Company.

  

	5.26	 	Directors, Officers and Employees 

  
 The Company Disclosure Schedule lists all directors, officers and Employees of the Company, showing their names, positions, current annual base
compensation, current fringe benefits and, for the most recently completed fiscal year, bonuses. 
  

	5.27	 	No Broker, Etc. 

  
 No broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or commission in connection with the Transaction based
upon arrangements made by or on behalf of the Company. 
  

	5.28	 	Other Negotiations 

  
 Except for the Transaction, there is no existing commitment or offer by the Company to sell all or a significant part of the assets of the Company, and
there are no pending negotiations for the sale of all or a substantial part of the assets of the Company. 
  

	5.29	 	No Material Adverse Effect 

  
 Except as disclosed in the Company Disclosure Schedule, there does not exist any fact or circumstance which, alone or together with another fact or
circumstance, could reasonably be expected to result in a Material Adverse Effect. 
  

	5.30	 	No Untrue Statement or Omission 

  
 No representation or warranty made by the Company contained in this Agreement and no statement by the Company and/or any Authorized Representatives of the
Company contained in any certificate, list, exhibit or other instrument specified in this Agreement, including without limitation the Company Disclosure Schedule, contains (or will contain when made) any untrue statement of a material fact or omits
(or will omit when made) to state a material fact necessary to make the statements contained therein, in light of the circumstances under which they were (or will be made), not misleading. 
  
 ARTICLE 6. 
  
 Representations and Warranties of Buyer 
  
 Buyer represents and warrants to Sellers and the Company that: 

	6.1	 	Organization and Qualification 

  
 Buyer is a corporation duly organized and validly existing under the laws of the State of Oregon and has the corporate power to carry on its business as
it is now being conducted and is currently proposed to be conducted. 
  

	6.2	 	Authority Relative to this Agreement 

  
 6.2.1 Buyer has the corporate power to enter into this Agreement and to carry out its obligations hereunder. 
  
 6.2.2 The Transaction, including without limitation the Employment Agreement
with Brian Berson, has been duly and validly authorized by all necessary corporate action on the part of Buyer. No other corporate proceedings on the part of Buyer are necessary to authorize the Transaction. 
  
 6.2.3 This Agreement and the Employment Agreement with Brian Berson
constitute valid and binding obligations of Buyer, enforceable against Buyer in accordance with their terms except as enforcement may be limited by bankruptcy, insolvency or other similar laws affecting the enforcement of creditors’ rights
generally, and except that the availability of equitable remedies, including specific performance, is subject to the discretion of the court in which any such Proceeding may be brought. 
  
 6.2.4 No Permit or Consent is necessary for the consummation by Buyer of the Transaction. 
  
 6.2.5 Neither the execution, delivery or performance of this Agreement, or
any other agreement relating hereto, including without limitation the Employment Agreement with Brian Berson or any other aspect of the Transaction, will: (a) require any Consent of the shareholders of Buyer; (b) conflict with, or violate any
provision of, or constitute or result in a breach or default (with or without notice, lapse of time or both) or give rise to a right of termination, cancellation or acceleration of any obligation or the loss of any material benefit, under (i) any
charter or bylaw of the Company, or (ii) any indenture, loan document provision or other Contract, Permit, Order, statute, law, ordinance, rule or regulation applicable to the Company or its properties or assets; or (c) result in or require the
imposition of any Lien with respect to, or upon, the Company or its properties or assets. 
  

	6.3	 	No Broker, Etc. 

  
 No broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or commission in connection with the Transaction based
upon arrangements made by or on behalf of Buyer. 
  

	6.4	 	Securities Act Representations 

  
 Buyer (i) understands that the Shares have not been, and will not be, registered under the Securities Act, or under any state securities laws, and are
being offered and sold in reliance upon federal and state exemptions for transactions not involving any public offering, (ii) is acquiring 

 
the Shares solely for its own account for investment purposes, and not with a view to the distribution thereof, (iii) is a sophisticated investor with
knowledge and experience in business and financial matters, (iv) has received certain information concerning the Company and has had the opportunity to obtain additional information as desired in order to evaluate the merits and the risks inherent
in holding the Shares, (v) is able to bear the economic risk and lack of liquidity inherent in holding the Shares, and (vi) is an Accredited Investor as defined in Regulation D of the Securities Act. 
  

	6.5	 	No Untrue Statement or Omission 

  
 No representation or warranty made by Buyer contained in this Agreement and no statement of Buyer and/or any Authorized Representative of Buyer contained
in any certificate, list, exhibit or other instrument specified in this Agreement contains (or will contain when made) any untrue statement of a material fact or omits (or will omit when made) to state a material fact necessary to make the
statements contained therein, in light of the circumstances under which they were (or will be made), not misleading. 
  
 ARTICLE 7. 
  
 Tax Matters 
  

	7.1	 	Tax Payment and Tax Return Filing Responsibilities 

  
 7.1.1 Taxes on Sale of Shares 
  
 Each Seller shall be solely responsible for, and shall timely pay, all Taxes related to the ownership of the Shares and the sale of the Shares to Buyer,
including, without limitation, applicable interest and penalties. 
  
 7.1.2 Buyer’s Tax Return Filing Responsibilities 
  
 During the period from the date of this Agreement to the Closing Date, without the prior written consent of Buyer, the Company shall not make or change any election, change an annual accounting period, adopt or change any accounting method,
file any amended Tax Return, enter into any closing agreement, settle any Tax claim or assessment related to the Company, surrender any right to claim a refund of Taxes, consent to any extension or waiver of the limitation period applicable to any
Tax claim or assessment relating to the Company, or take any other similar action relating to the filing of any Tax Return or the payment of any Tax, if such election, adoption, change, amendment, agreement, settlement, surrender, consent or other
action would have the effect of increasing the Tax liability of the Company for any period ending after the Closing Date or decreasing any Tax attribute of the Company existing on the Closing Date. 

 ARTICLE 8. 
  

Additional Agreements and Covenants 
  

	8.1	 	Conduct of Business of the Company 

  
 During the period from the date of this Agreement to the Closing Date, the Company will comply fully with each of the covenants set forth in this Section
8.1, and Sellers will cause the Company to so comply: 
  
 8.1.1
The Company will: (i) conduct its operations in compliance with all applicable laws and regulations and according to its ordinary course of business consistent with past practice, (ii) not enter into any material transaction other than in the
ordinary course of business consistent with past practice, (iii) with no less diligence and effort than would be applied in the absence of this Agreement, seek to preserve intact its assets and current business organizations, keep available the
service of its current officers and Employees and preserve its relationships with customers, suppliers and others having business dealings with it with the objective that their goodwill and ongoing businesses shall be unimpaired at the Closing Date,
and (iv) consult with Buyer on a regular basis concerning the management of its assets, properties and business generally, any material new contracts, agreements, commitments or transactions proposed to be entered into or Employees proposed to be
engaged in by it and any other material developments relating to its assets, properties or business. 
  
 8.1.2 Except as otherwise permitted in this Agreement, prior to the Closing Date, the Company will not, without the prior written consent of Buyer:

  
 (i) Except for the issuance of Common Stock issuable upon the
exercise by holders thereof of options outstanding as of the date of this Agreement, issue, deliver, sell, dispose of, pledge or otherwise encumber, or authorize or propose the issuance, delivery, sale, disposition or pledge or other encumbrance of
(a) any additional shares of its capital stock of any class (including the Shares), or any securities or rights convertible into, exchangeable for or evidencing the right to subscribe for any shares of its capital stock, or any rights, warrants,
options, calls, commitments or any other agreements of any character to purchase or acquire any shares of its capital stock or any securities or rights convertible into, exchangeable for, or evidencing the right to subscribe for any shares of its
capital stock or (b) any other securities in respect of, in lieu of or in substitution for any shares of its capital stock (including the Shares) outstanding on the date hereof; 
  
 (ii) Redeem, purchase or otherwise acquire, or propose to redeem, purchase or otherwise acquire, any of its outstanding
securities (including the Shares); 
  
 (iii) Split, combine,
subdivide or reclassify any shares of its capital stock or declare, set aside for payment or pay any dividend, or make any other actual, constructive or deemed distribution in respect of any shares of its capital stock or otherwise make any payments
to shareholders in their capacity as such; 
  
 (iv) (a) Grant any
increases in the compensation of any of its directors, officers or Employees, (b) pay or agree to pay any pension, retirement allowance or other material 

 
employee benefit not required or contemplated by any Employee Plan or Benefit Arrangement as in effect on the date hereof to any such director, officer or
Employee, whether past or present, (c) enter into any new or amend any existing employment agreement with any such director, officer or Employee, (d) enter into any new or amend any existing severance agreement with any such director, officer or
Employee or (e) except as may be required to comply with applicable law, amend any existing, or become obligated under any new, Employee Plan or Benefit Arrangement; 
  
 (v) Dispose of, or grant Liens on, any of its assets outside the ordinary course of its business consistent with past
practice, or adopt a plan of complete or partial liquidation, dissolution, merger, consolidation, restructuring, recapitalization or other reorganization (other than the Transaction); 
  
 (vi) Make any acquisition, by means of merger, consolidation or otherwise, of (i) any direct or indirect ownership interest
in, or assets comprising, any business enterprise or operation, or (ii) except in the ordinary course and consistent with past practice, any other assets; 
  
 (vii) Adopt any amendments to its articles of incorporation or bylaws; 
  
 (viii) Other than borrowings under existing credit facilities or other borrowings in the ordinary course, incur any
indebtedness for borrowed money or guarantee any such indebtedness or, except in the ordinary course of business consistent with past practice, make any loans, advances or capital contributions to, or investments in, any other Person; 
  
 (ix) Engage in the conduct of any business, the nature of which is different
than the business such entity is currently engaged in; 
  
 (x)
Enter into any agreement providing for acceleration of payment or performance or other consequence as a result of a change of control of the Company or its Subsidiaries; 
  
 (xi) Enter into any contract, arrangement or understanding requiring the purchase of equipment, materials, supplies or
services over a period greater than 12 months or for the expenditure of greater than $500 per year, which is not cancelable without penalty on 30 days’ or less notice, except in the ordinary course of business for the distribution of products
or the production of inventory; or 
  
 (xii) Authorize or announce
an intention to do any of the foregoing, or enter into any contract, agreement, commitment or arrangement to do any of the foregoing. 
  

	8.2	 	Notice of Breach 

  
 Each party to this Agreement shall promptly give written notice to the other party upon becoming aware of the occurrence or, to its Knowledge, impending
or threatened occurrence, of any event which would cause any of its representations or warranties to be untrue on the Closing Date or cause a breach of any covenant contained or referenced in this Agreement and will use its reasonable efforts to
prevent or promptly remedy the same. Any such notification shall not be deemed an amendment of the Company Disclosure Schedule. 

	8.3	 	Reasonable Efforts 

  
 Each party shall, and shall use all reasonable efforts to cause their respective Subsidiaries to: (a) seek to obtain all Permits and Consents required
with respect to the Transaction, and the parties will cooperate with each other with respect thereto; (b) use all reasonable efforts to promptly take, or cause to be taken, all other actions (including but not limited to the execution, delivery and
filing of documents) and do, or cause to be done, all other things necessary, proper or appropriate to satisfy the conditions set forth in Article 9 and to consummate and make effective the Transaction on the terms and conditions set forth herein;
and (c) not take any action which might reasonably be expected to impair the ability of the parties to consummate the Transaction (regardless of whether such action would otherwise be permitted or not prohibited hereunder). 
  

	8.4	 	Other Transactions 

  
 Prior to the Closing, neither Sellers nor the Company or any of their respective officers, employees, representatives, agents or Affiliates will, directly
or indirectly, encourage, solicit or engage in discussions or negotiations with any Person (other than Buyer) concerning any merger, consolidation, share exchange or similar transaction involving the Company, or any purchase of all or a significant
portion of the assets of or stock in the Company, or any other transaction that would involve the transfer or potential transfer of control of the Company, other than the Transaction. Sellers and the Company will notify Buyer immediately of any
inquiries or proposals with respect to any such transaction that are received by, or any such negotiations or discussions that are sought to be initiated with, Sellers or the Company. 
  

	8.5	 	Access to Information 

  
 Upon reasonable notice to the Company, Sellers and the Company shall during normal business hours throughout the period prior to the Closing Date or until
this Agreement is terminated (a) afford to Buyer’s Authorized Representatives access to the properties, books, records and Tax Returns (including, without limitation, the work papers of independent accountants of the Company); and (b) furnish
promptly to Buyer’s Authorized Representatives all information concerning its business, properties and personnel as may reasonably be requested, provided that no investigation pursuant to this Section 8.5 shall affect or be deemed to modify any
of the respective representations or warranties made by any Seller or the Company. 
  

	8.6	 	Further Assurances 

  
 Both before and after the Closing Date, each party will cooperate in good faith with each other party and will take all appropriate action and execute any
agreement, instrument or other writing of any kind which may be reasonably necessary or advisable to carry out and confirm the transactions contemplated by this Agreement (including, but not limited to, obtaining Consents from any Person from whom a
Consent is not obtained on or before the Closing). 

 ARTICLE 9. 
  

Conditions Precedent 
  

	9.1	 	Conditions to Obligation of Buyer 

  
 The obligation of Buyer to consummate the Transaction is subject to the fulfillment at or prior to the Closing Date of each of the following conditions,
any or all of which may be waived in whole or part by Buyer to the extent permitted by applicable law. 
  
 9.1.1 Representations and Warranties True 
  
 The representations and warranties of Sellers and the Company contained in Articles 4 and 5, respectively, (or otherwise required hereby to be made after
the date hereof in a writing expressly referred to herein by or on behalf of Sellers or the Company pursuant to this Agreement) shall have been true in all material respects when made and shall be true in all material respects on and as of the
Closing Date as if made on and as of such date (except to the extent they relate to the date of this Agreement or any other particular date). 
  
 9.1.2 Performance 
  
 Sellers and the Company shall have each performed or complied in all material respects with all agreements and conditions contained herein required to be
performed or complied with by each such party prior to or at the time of Closing, including, but not limited to, execution and/or delivery of the documents specified in Section 3.2. 
  
 9.1.3 Bring-Down Certificates 
  
 (a) Each Seller shall have delivered to Buyer a certificate, dated the Closing Date, signed by such Seller, certifying as to
the fulfillment of the conditions specified in Sections 9.1.1 and 9.1.2 as they relate to such Seller (each, a “Seller’s Bring-Down Certificate”), and (b) the Company shall have delivered to Buyer a certificate, dated the Closing
Date, signed by the President of the Company, certifying as to the fulfillment of the conditions specified in Sections 9.1.1 and 9.1.2 as they relate to the Company (the “Company’s Bring-Down Certificate). 
  
 9.1.4 No Order or Proceeding 
  
 No Order shall be outstanding, and no Proceeding shall be pending,
threatened or anticipated against Buyer or any Seller which would prohibit, invalidate or attempt to enjoin, or materially adversely affect, the Transaction. 
  
 9.1.5 Permits and Consents 
  
 All Permits and Consents, if any, described in the Company Disclosure Schedule with reference to Section 5.4.5 shall have been obtained. 

 9.1.6 No Material Adverse Change 
  
 There shall have been no changes since the date of this Agreement in the business, operations, prospects, condition
(financial or otherwise), properties, assets or liabilities of the Company (regardless of whether or not such events or changes are inconsistent with the representations and warranties given herein by the Company), except changes contemplated by
this Agreement and changes in the ordinary course of business which would not be considered to have, either individually or in the aggregate, at Material Adverse Effect; provided, further, that a Material Adverse Effect caused by any disclosure of
the terms or existence of this Agreement or the Transaction by Buyer prior to the Closing shall not be treated as a Material Adverse Effect for purposes of this Section 9.1.6. 
  
 9.1.7 Due Diligence 
  
 Buyer shall have completed, to its satisfaction, its business, operational, legal, tax and accounting due diligence. 
  
 9.1.8 Employment Agreement 
  
 Buyer shall have entered into an Employment Agreement with Brian Berson,
substantially in the form attached hereto as Exhibit A. 
  
 9.1.9 Resignations 
  
 Buyer shall have received
the resignations of all of the officers and directors of the Company. 
  
 9.1.10 Opinion of Counsel 
  
 Buyer shall have
received an opinion dated the Closing Date of Gray Cary Ware & Freidenrich LLP, counsel to the Company, in a form agreed upon by the parties. 
  
 9.1.11 Sale of 100% of the Shares 
  
 Buyer shall have received delivery of 100% of the Shares, with duly executed stock powers. 
  

	9.2	 	Conditions to Obligation of Sellers and the Company 

  
 The obligation of each Seller and the Company to consummate the Transaction are subject to the fulfillment at or prior to the Closing Date of each of the
following conditions, any or all of which may be waived in whole or in part by each Seller or the Company, as applicable, to the extent permitted by applicable law. 
  
 9.2.1 Representations and Warranties True 
  
 The representations and warranties of Buyer contained in Article 6 (or otherwise required hereby to be made after the date
hereof in a writing expressly referred to herein by or on behalf 

 
of Buyer pursuant to this Agreement) shall have been true in all material respects when made and shall be true in all material respects on and as of the
Closing Date as if made on and as of such date (except to the extent they relate to the date of this Agreement or any other particular date). 
  
 9.2.2 Performance 
  
 Buyer shall have performed or complied in all material respects with all agreements and conditions contained herein required to be performed or complied
with by Buyer prior to or at the time of the Closing including, but not limited to, execution and/or delivery of the documents and funds specified in Section 3.3. 
  
 9.2.3 Buyer’s Bring-Down Certificate 
  
 Buyer shall have delivered to each Seller a certificate, dated the Closing Date, signed by the Chief Executive Officer of
Buyer certifying as to the fulfillment by Buyer of the conditions specified in Sections 9.2.1 and 9.2.2 (“Buyer’s Bring-Down Certificate”). 
  
 9.2.4 No Order or Proceeding 
  
 No Order shall be outstanding, and no Proceeding shall be pending, threatened or anticipated against Buyer or any Seller which would prohibit, invalidate
or attempt to enjoin, or materially adversely affect, the Transaction. 
  
 9.2.5 Permits and Consents 
  
 All Permits and
Consents, if any, described with reference to Section 6.2.4 shall have been obtained. 
  
 9.2.6 Employment Agreement 
  
 Buyer shall have entered into an Employment Agreement with Brian Berson, substantially in the form attached hereto as Exhibit A. 
  
 9.2.7 Opinion of Counsel 
  
 Sellers shall have received an opinion dated the Closing Date of Ater Wynne LLP, counsel to the Buyer, in a form agreed upon by the parties. 

 
 ARTICLE 10. 
  
 Post-Closing Covenants 
  

	10.1	 	Transition Period of Employment 

  
 Buyer shall offer a 30-day, 60-day, or 90-day (the number of days shall be in the sole discretion of Buyer) “transition” period of employment
with Buyer to all Persons who were Employees listed on Schedule 10.1(which Schedule 10.1 shall be prepared as of the Closing and mutually agreed upon by Buyer and the Company) and whose employment with the Company shall be terminated at the end of
the “transition period”. Buyer shall be responsible for payment 

 
of wages and benefits to such Persons during this “transition” period of employment. The Company shall reserve as a liability on the Closing Date
Balance Sheet, an amount equal to the severance pay and accrued benefits for the Employees listed on Schedule 10.1. The amount of severance pay and accrued benefits for each such Employee shall be set forth on Schedule 10.1. Upon the termination
date of such Employees, Buyer shall be responsible for payment of the severance pay and accrued benefits in an amount equal to that set forth on Schedule 10.1, plus any benefits accrued during the “transition” period of employment. In the
event that any Employee on Schedule 10.1 is not terminated within 90 days from the Closing Date, then the amount reserved for such Employee shall be cancelled and shall be released to Sellers on a pro rata basis. 
  

	10.2	 	Marin County Office 

  
 Buyer will maintain the Company’s current office in Marin County for a period of at least 24 months from the Closing Date; provided, however, that
Buyer shall have the right to close the Marin County office at any time after Closing, including during such 24 month period, in the event (i) Brian Berson’s employment with Buyer is terminated for any reason, or (ii) if the Buyer determines in
its sole discretion that there is an adverse change in the Business or in Buyer’s business or that an adverse business condition has occurred with respect to the Business or Buyer’s business. 
  
 ARTICLE 11. 
  
 Restrictive Covenants 
  

	11.1	 	Confidentiality 

  
 11.1.1 Each Seller has had access to, and has gained knowledge with respect to the Company, and its trade secrets, financial results and information,
processes and techniques, plans, research, designs, concepts, methods of doing business and information concerning customers and suppliers, and other valuable and confidential information, which is not generally known to the public (the
“Confidential Information”). The parties acknowledge that unauthorized disclosure or use of the Confidential Information following the date of this Agreement may cause irreparable damage to Buyer and/or the Company. The parties also agree
that covenants by each Seller not to make unauthorized disclosures of the Confidential Information are essential to the growth and stability of the Company. Accordingly, each Seller agrees that such Seller shall not use or disclose directly or
indirectly or cause or permit to be used or disclosed any Confidential Information obtained by such Seller while he was an Affiliate of the Company. 
  
 11.1.2 Nothing in Section 11.1.1 shall prevent any Seller from using or disclosing any such Confidential Information (i) as counsel to such Seller advises
must be used or disclosed in connection with ongoing litigation or pursuant to applicable law, notice of which disclosure shall be promptly delivered to Buyer, (ii) to governmental agencies, including taxing authorities, or (iii) to such
Seller’s legal, financial or other representatives for purposes of evaluating this Agreement. The term “Confidential Information” shall not include information which is or becomes published or otherwise available in the public domain.

	11.2	 	Remedies 

  
 Each Seller acknowledges that Buyer and/or the Company may suffer damages incapable of ascertainment in the event the provisions of this Article 11 are
breached and that they may be irreparably damaged in the event that the provisions of this Article 11 are not enforced. Therefore, should any dispute arise with respect to the breach or threatened breach of any provision of this Article 11, each
Seller agrees and consents that, in addition to any and all other remedies available to Buyer and/or the Company, an injunction or restraining order or other equitable relief may be issued or ordered by a court of competent jurisdiction restraining
any breach or threatened breach of any provision of this Article 11. 
  
 ARTICLE 12. 
  
 Termination, Amendment and
Waiver 
  

	12.1	 	Termination 

  
 This Agreement may be terminated at any time prior to the Closing Date: 
  
 12.1.1 By mutual consent of Buyer and each Seller; 
  
 12.1.2 By either Buyer or the Sellers if Closing of the Transaction shall not have occurred on or before July 30, 2003
(provided the terminating party is not otherwise in material breach of its representations, warranties, covenants or agreements under this Agreement); 
  
 12.1.3 By Buyer if any of the conditions specified in Section 9.1 has not been met or waived by Buyer at such time as such condition is no longer capable
of satisfaction (provided Buyer is not otherwise in material breach of its representations, warranties, covenants or agreements under this Agreement, which breach is the direct and proximate cause of the failed condition); 
  
 12.1.4 By Sellers if any of the conditions specified in Section 9.2 has not
been met or waived by Sellers at such time as such condition is no longer capable of satisfaction (provided neither Sellers nor the Company is otherwise in material breach of its respective representations, warranties, covenants or agreements under
this Agreement, which breach is the direct and proximate cause of the failed condition); 
  
 12.1.5 By Buyer if there has been a material breach on the part of any Seller or the Company of any representation, warranty, covenant or agreement by such Seller or the Company set forth in this Agreement, which
breach, if capable of cure, has not been cured within 15 business days following receipt by such Seller of written notice of such breach; 
  
 12.1.6 By Sellers if there has been a material breach on the part of Buyer of any representation, warranty, covenant or agreement by Buyer set forth in
this Agreement, which breach, if capable of cure, has not been cured within 15 business days following receipt by Buyer of written notice of such breach; and 

 12.1.7 By either Buyer or Sellers upon written notice given in compliance with Section 14.3 below if any
Governmental Authority of competent jurisdiction shall have issued a final permanent Order enjoining or otherwise prohibiting the consummation of the Transaction and, in any such case the time for appeal or petition for reconsideration of such Order
shall have expired without such appeal or petition being granted. 
  

	12.2	 	Effect of Termination 

  
 In the event of termination of this Agreement by either Buyer or Sellers as provided above, this Agreement shall forthwith become void and there shall be
no liability on the part of Buyer, any Seller or the Company or their respective officers or directors; provided, however, that (i) Sections 11.1 and 11.2, this Section 12.2, and the provisions of Article 14 shall survive the termination, and (ii)
nothing herein shall relieve any party from liability for any breach of this Agreement prior to the date of termination. 
  

	12.3	 	Amendment 

  
 This Agreement may be amended only by an instrument in writing signed on behalf of each of the parties hereto. 
  

	12.4	 	Waiver 

  
 At any time prior to the Closing Date, the parties hereto may (i) extend the time for the performance of any of the obligations or other acts of the other
parties hereto, (ii) waive any inaccuracies in the representations and warranties of any other party contained herein or in any documents delivered pursuant hereto by any other party and (iii) waive compliance with any of the agreements or
conditions contained herein. Any agreement on the part of a party hereto to any such extension or waiver shall be valid only if set forth in an instrument in writing signed on behalf of such party. Any such extension or waiver shall be effective
only in the particular instance in which it is given. 
  
 ARTICLE 13. 
  
 Survival and Indemnification

  

	13.1	 	Survival of Representations, Warranties, Covenants and Agreements 

  
 All representations and warranties by Sellers and the Company contained in this Agreement shall survive the Closing Date for a period of one year.

  

	13.2	 	Stockholders’ Representative 

  
 Brain Berson shall be constituted and appointed as agent (the “Stockholders’ Representative”) for and on behalf of the Sellers to give and
receive notices and communications, to authorize delivery to Buyer of amounts out of the Escrow Amount in satisfaction of claims of Losses by Buyer, to dispute such deliveries, to make claims on behalf of Sellers pursuant to this Article 13, to
agree to, negotiate, enter into settlements and compromises of, and demand mediation and comply with orders of courts and awards of mediators with 

 
respect to such claims, and to take all actions necessary or appropriate in the judgment of the Stockholders’ Representative for the accomplishment of
the foregoing. 
  

	13.3	 	The Escrow Amount 

  
 The Escrow Amount shall be placed in an interest-bearing account at Silicon Valley Bank. The Escrow Amount shall be held in such account, subject to
Article 13 hereof, until the expiration of the Claims Period. Within five (5) days after the termination of the Claims Period, upon the mutual consent of Buyer and Stockholders’ Representative, their respective portions of the Escrow Amount,
less amounts delivered to Buyer in accordance with this Article 13 in satisfaction of indemnification claims, shall be released to Sellers. 
  

	13.4	 	Indemnification of Buyer 

  
 From, out of, and to the extent of the resources represented by the Escrow Amount, Buyer shall be indemnified and held harmless from, against and in
respect to, any Loss suffered or incurred or to be suffered or incurred by Buyer by reason of (i) a breach of any representation or warranty by any Seller or the Company contained in this Agreement, (ii) the nonfulfillment of any covenant or
agreement by any Seller or the Company contained in this Agreement, (iii) any post-termination claim made by an Employee for severance pay and accrued benefits with respect to such Employee’s pre-Closing employment with the Company in excess of
the amount reserved on the Closing Date Balance Sheet for severance pay and accrued benefits, and (iv) all Proceedings incident to any of the foregoing. 
  

	13.5	 	Notification and Defense of Claims or Actions 

  
 13.5.1 If Buyer proposes to assert its right to be indemnified under this Article 13 with respect to a Loss that does not involve a claim or demand being
asserted by a third party, Buyer shall, promptly submit a written notice to the Stockholders’ Representative setting forth in summary form the facts as then known which form the basis for the claim for indemnification, and the amount of the
Loss (“Indemnification Notice”). The Stockholders’ Representative shall have 20 days (the “Dispute Period”) from the receipt of an Indemnification Notice to notify Buyer in writing if Stockholders’ Representative
disputes Buyer’s claim for indemnification. If Stockholders’ Representative does not provide Buyer with written notice of any such dispute within the Dispute Period, thereafter, Buyer shall be entitled to withdraw the amount of the Loss
specified in the Indemnification Notice from the Escrow Amount. If the Stockholders’ Representative disputes Buyer’s claim for indemnification within the Dispute Period, then Buyer and Stockholders’ Representative shall negotiate in
good faith to reach a resolution of such dispute. If the Buyer and Stockholders’ Representative are unable to resolve the dispute by reasonable discussion, the parties shall engage the services of a professional mediator and attempt in good
faith to reach a consensual solution. If the Buyer and Stockholders’ Representative are unable to agree upon the identity of a mediator, either party may request the appointment of a mediator by the Arbitration Service of Portland, Inc., or
comparable dispute resolution service. Each party shall pay all of its own attorneys’ fees, if any, and expenses related to the mediation and one-half of the mediator’s fees. 

 13.5.2 If Buyer proposed to assert its right to be indemnified under this Article 13 with respect to a
Loss that is based on a claims, demands or actions by third parties, Buyer shall, within five (5) days after the receipt of notice of the commencement of any Proceeding against it in respect of which a claim for indemnification is to be made, notify
the Stockholders’ Representative in writing of the commencement of such Proceeding, enclosing a copy of all papers served. In connection with any Proceeding in which any Seller or Sellers is a party, such Seller or Sellers, or the
Stockholders’ Representative shall be entitled to participate therein, and may assume the defense thereof with counsel satisfactory to Buyer. Notwithstanding the assumption of the defense of any such Proceeding by any Seller or Sellers, or
Stockholders’ Representative, Buyer shall have the right to employ separate counsel, at Buyer’s expense, and to participate in the defense of such Proceeding. If Buyer retains the defense of such Proceeding, Buyer shall deliver to the
Stockholders’ Representative, within five (5) days after receipt by Buyer, copies of all further notices relating to such claim. Buyer shall not settle or compromise any claim or consent to entry of any judgment that does include an
unconditional release from all liabilities with respect to such claim without the written consent of the Stockholders’ Representative, which consent will not be unreasonably withheld. The Sellers, or the Stockholders’ Representative, as
applicable, shall cooperate fully with Buyer in connection with the Buyer’s defense against any such third party claims. 
  
 13.5.3 Buyer must initiate any claim for indemnification hereunder by providing Stockholders’ Representative with an Indemnification Notice prior to
the expiration of the Claims Period. 
  

	13.6	 	Reliance 

  
 No disclosure by any Seller or the Company, nor any investigation made by or on behalf of Buyer, shall be deemed to affect Buyer’s reliance on the
respective representations and warranties, covenants and agreements contained in this Agreement and shall not effect a waiver of Buyer’s rights to indemnification as herein provided for the breach of any of said representations and warranties,
the nonfulfillment of any covenant or agreement, or any Proceeding incident thereto. 
  

	13.7	 	Sole and Exclusive Remedy 

  
 Except with respect to fraud, willful misconduct or bad faith by the Company or the Sellers, the indemnification provisions of this Article 13 shall
constitute the sole and exclusive remedy of the parties hereto for recovery of Losses, and the parties hereby waive any other remedy which they or any other person may have at law or equity with respect thereto. 
  
 ARTICLE 14. 
  
 General Provisions 
  

	14.1	 	Expenses 

  
 Each party shall bear all expenses incurred by such party (before or after the Closing) in connection with the Transaction, including the fees and
expenses of any attorneys, accountants, investment bankers, brokers, finders or other intermediaries or other Persons engaged by such 

 
party. Notwithstanding the foregoing, if Working Capital is less than $1,100,000 on the Closing Balance Sheet, Buyer will credit Working Capital for an
amount equal to the Company’s legal fees incurred directly as a result of the Transaction; provided, however, that such credit shall be limited to an aggregate of $30,000. 
  

	14.2	 	Public Announcements 

  
 The parties will not make any public announcement or otherwise divulge the terms or existence of the Transaction and this Agreement (other than to each
party’s legal, tax and other advisors or such employees at Buyer or the Company who also agree to be bound by this provision) regarding the transaction prior to Closing unless required to do so by applicable law or regulations (in which event,
however, the party so required to make such announcement will provide advance written notice to the other party regarding the reason for and content of such required announcement); provided, however, that Celartem Technology, Inc., an affiliate of
the Buyer shall be entitled to make such a public announcement prior to Closing. To the extent reasonably requested by any party, each party will after the Closing consult with and provide reasonable cooperation to the others in connection with the
issuance of any press releases or other public documents describing the Transaction. 
  

	14.3	 	Notices, Etc. 

  
 All notices, requests, demands or other communications required by or otherwise with respect to this Agreement shall be in writing and shall be deemed to
have been duly given to any party when delivered personally (by courier service or otherwise), when delivered by facsimile and confirmed by return facsimile, or seven (7) days after being mailed by first-class mail, postage prepaid and return
receipt requested in each case to the applicable addresses set forth below: 
  
 If to Buyer: 
  
 Craig
Keudell, Chief Executive Officer 
 Extensis, Inc. 
 1800 SW First Ave # 500 
 Portland, OR 97201 
 Telephone: (503) 290-0397 
 Facsimile: (503)
274-0530 
  
 With a Copy To: 
  
 Brenda L. Meltebeke 
 Ater Wynne LLP 
 222 SW Columbia, Suite 1800

 Portland, OR 97201-6618 
 Telephone: (503) 226-1191 
 Facsimile: (503) 226-0079 

 If to Company: 
  
 DiamondSoft, Inc. 
 1050 Redwood Highway 
 Mill Valley, CA 94941 
  
 With a Copy To: 
  
 Gray Cary Ware & Freidenrich LLP 
 153
Townsend Street, Suite 800 
 San Francisco, CA 94107 
 Telephone: (415) 836-2500 
 Facsimile: (415) 836-2501 
 Attn: Pamela B. Burke 
  
 If to Sellers: 
  
 To the Stockholders’ Representative at his address listed on Schedule 2.1(i) 
  
 With a Copy To: 
  
 Gray Cary Ware & Freidenrich LLP 
 153
Townsend Street, Suite 800 
 San Francisco, CA 94107 
 Telephone: (415) 836-2500 
 Facsimile: (415) 836-2501 
 Attn: Pamela B. Burke 
  
 or to such other address as such party shall have designated by notice so given to each other party. 
  

	14.4	 	Attorneys’ Fees 

  
 If a Proceeding is filed by any party to enforce this Agreement or otherwise with respect to the subject matter of this Agreement, the prevailing party or
parties shall be entitled to recover reasonable attorneys’ fees incurred in connection with such Proceeding as fixed by the trial court, and if any appeal is taken from the decision of the trial court, reasonable attorneys’ fees as fixed
by the appellate court. 
  

	14.5	 	Severability 

  
 If any one or more of the provisions contained in this Agreement shall be invalid, illegal or unenforceable in any respect for any reason, the validity,
legality and enforceability of any such provision in every other respect and of the remaining provisions of this Agreement shall not be in any way impaired. 

	14.6	 	No Third-Party Beneficiaries 

  
 Subject to Section 14.9.2 below, this Agreement is not intended to be for the benefit of and shall not be enforceable by any Person who or which is not a
party hereto. 
  

	14.7	 	Jurisdiction 

  
 Each party hereby irrevocably submits to the exclusive jurisdiction of the United States District Court for the District of Oregon, or, if such court does
not have jurisdiction over such matter, to the applicable state court in Multnomah County, Oregon (and waives any objection based on forum non conveniens or any other objection to venue therein). Each party hereto consents to service of process in
any Proceeding through the procedures provided for notice in this Agreement. 
  

	14.8	 	Governing Law 

  
 This Agreement and all disputes hereunder shall be governed by and construed and enforced in accordance with the internal laws of the State of Oregon,
without regard to principles of conflict of laws. 
  

	14.9	 	Assignment and Binding Effect 

  
 14.9.1 No party shall have the right to assign this Agreement, in whole or in part, whether by operation of law or otherwise, without the prior written
consent of the other parties hereto, and any such assignment contrary to the terms hereof shall be null and void and of no force and effect. In no event shall any permitted assignment by any Seller, the Company or Buyer of its respective rights or
obligations under this Agreement, whether before or after the Closing, release any Seller, the Company or Buyer from its respective liabilities and obligations hereunder. 
  
 14.9.2 Subject to any provisions hereof restricting assignment, this Agreement shall be binding upon and shall inure to the
benefit of the parties hereto and their respective successors, heirs, executors, administrators, legal representatives and assigns. 
  

	14.10	 	Entire Agreement 

  
 This Agreement (including the exhibits and schedules hereto and the documents and instruments referred to herein) constitutes the entire agreement and
supersedes all other prior agreements and understandings, both written and oral, among the parties, or any of them, with respect to the subject matter hereof (other than as provided in the Confidentiality Agreement). 
  

	14.11	 	Counterparts 

  
 This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which together shall constitute
one instrument. Each counterpart may consist of a number of copies, each signed by less than all, but together signed by all, the parties hereto. 

 IN WITNESS WHEREOF, this Agreement has been executed and delivered by the parties set forth below.

  

	BUYER:	 	 	 	EXTENSIS, INC.
					
	 	 	 	 	 	 	 By:
	 	 /s/ Craig Keudell

	 	 	 	 	 	 	 	 	 Craig Keudell, Chief Executive Officer

			
	THE COMPANY:	 	 	 	DIAMONDSOFT, INC.
					
	 	 	 	 	 	 	 By:
	 	 /s/ Brian Berson

	 	 	 	 	 	 	 	 	 Brian Berson, President

			
	SELLERS:	 	 	 	 /s/ Brian Berson

	 	 	 	 	 	 	 Brian Berson

				
	 	 	 	 	 	 	 BITSTREAM, INC.

					
	 	 	 	 	 	 	 By:
	 	 /s/ Charles Ying

	 	 	 	 	 	 	 	 	 Charles Ying, CEO

 SCHEDULE 2.1(i) 
  
 Shares to be Transferred 
  

	 Seller

	  	Number of Shares Owned

	  	Portion of Closing Date
Payment

	 Brian Berson
	  	652,500	 	 	Common Stock	  	$
 	 
            
	 [address]                                
	  	 	 	 	 	  	 	 
	 _____________________
	  	 	 	 	 	  	 	 
	 Bitstream, Inc.
	  	20,670	 	 	Series A	  	$
 	 
            
	 [address]                                
	  	21,010	 	 	Series A	  	 	 
	 _____________________
	  	25,642	 	 	Series A	  	 	 
	 	  	250,000	 	 	Series A	  	 	 
	 	  	19,090	 	 	Series A	  	 	 
	 	  	38,760	 	 	Series A	  	 	 
	 	  	40,000	 	 	Series A	  	 	 
	 	  	
	
	 	 	  	 	 
	 TOTAL        
	  	415,172	*	 	 	  	 	 

	*	 	All 415,172 shares of Series A Preferred Stock will be converted to Common Stock at a conversion ratio of one-to-one. 

 SCHEDULE 2.1(ii) 
  
 List of Option Holders 
  

	 Name of Option Holder

	  	Total Options

	  	No. of Options Vested

	 Gordon Cavanaugh
	  	30,000	  	22,500
	 Mark Cirino
	  	5,000	  	1,666
	 William Sohne
	  	30,000	  	7,500
	 Scott Geiger
	  	30,000	  	1,875
	 Clifford Kaplan
	  	40,000	  	40,000

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