Document:

exv10w12

 

Exhibit 10.12

Lease

by and between

NE WILLIAMS II, LLC, 

Landlord, 

and

Netezza Corp,

Tenant

Dated: January 2, 2008

Property: 26 Forest Street, Marlborough, MA

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE I FUNDAMENTAL LEASE PROVISIONS
	 	 	1	 
	 
	 	 	 	 
	1.1 Reference Subjects
	 	 	 1	 
	 
	 	 	 	 
	ARTICLE II PREMISES AND TERM
	 	 	3	 
	 
	 	 	 	 
	2.1 Premises
	 	 	 3	 
	2.2 Acceptance of Premises
	 	 	 3	 
	2.3 Term
	 	 	 3	 
	 
	 	 	 	 
	ARTICLE III CONDITION OF PREMISES AND TENANT WORK
	 	 	3	 
	 
	 	 	 	 
	3.1 Initial Construction
	 	 	 3	 
	3.2 Delivery of Possession and Commencement Date
	 	 	 3	 
	3.3 Early Access
	 	 	 4	 
	3.4 General Provisions Applicable to Construction
	 	 	 4	 
	 
	 	 	 	 
	ARTICLE IV RENT
	 	 	5	 
	 
	 	 	 	 
	4.1 Annual Fixed Rent
	 	 	 5	 
	4.2 Method of Payment
	 	 	 5	 
	4.3 Net Return to Landlord
	 	 	 5	 
	4.4 Additional Rent
	 	 	 6	 
	4.4.1 Additional Rent - Landlord’s Taxes
	 	 	6	 
	4.4.2 Landlord’s Taxes - Definition
	 	 	6	 
	4.4.3 Additional Rent - Operating Expenses
	 	 	6	 
	4.4.4 Landlord’s Operating Expenses – Definition
	 	 	7	 
	4.5 Allocation of Certain Operating Expenses
	 	 	 9	 
	4.6 Electricity
	 	 	 9	 
	4.7 Audit
	 	 	 9	 
	 
	 	 	 	 
	ARTICLE V ADDITIONAL COVENANTS
	 	 	10	 
	 
	 	 	 	 
	5.1 Tenant’s Covenants
	 	 	10	 
	5.1.1 Utilities and Services
	 	 	10	 
	5.1.2 Maintenance
	 	 	10	 
	5.1.3 Use and Compliance with Law
	 	 	10	 
	5.1.4 Liens and Encumbrances
	 	 	11	 
	5.1.5 Waiver and Indemnity
	 	 	11	 
	5.1.5.1 Waiver
	 	 	11	 
	5.1.5.2 Indemnity
	 	 	11	 
	5.1.6 Landlord’s Right to Enter
	 	 	12	 
	5.1.7 Personal Property at Tenant’s Risk
	 	 	12	 
	5.1.8
Overloading, Nuisance, Etc.
	 	 	12	 
	5.1.9 Yield Up
	 	 	13	 
	5.1.10 Holding Over
	 	 	13	 
	5.1.11 Assignment, Subletting
	 	 	13	 
	5.2 Landlord’s Covenants
	 	 	15	 
	5.2.1 Building Services
	 	 	15	 
	5.2.1.1 Landlord’s Maintenance
	 	 	15	 
	5.2.1.2 Office Identification
	 	 	15	 
	5.2.1.3 Grounds Maintenance
	 	 	15	 

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	5.2.1.4 Cleaning
	 	 	16	 
	5.2.2 Interruptions
	 	 	16	 
	 
	 	 	 	 
	ARTICLE VI INSURANCE; CASUALTY; TAKING
	 	 	16	 
	 
	 	 	 	 
	6.1 Insurance
	 	 	16	 
	6.1.1 Coverage
	 	 	16	 
	(a) Commercial General Liability Insurance
	 	 	16	 
	(b) Property Insurance
	 	 	16	 
	(c) Workers’ Compensation Insurance
	 	 	17	 
	(d) Landlord’s Coverage
	 	 	17	 
	6.1.2 Avoid Action Increasing Rates
	 	 	17	 
	6.1.3 Waiver of Subrogation
	 	 	17	 
	6.2 Fire or Casualty
	 	 	18	 
	6.3 Waiver of Claim
	 	 	18	 
	6.4 Nonwaiver
	 	 	19	 
	6.5 Condemnation
	 	 	19	 
	 
	 	 	 	 
	ARTICLE VII DEFAULT
	 	 	19	 
	 
	 	 	 	 
	7.1 Events of Default
	 	 	19	 
	7.2 Remedies for Default
	 	 	20	 
	7.2.1 Reletting Expenses Damages
	 	 	20	 
	7.2.2 Termination Damages
	 	 	20	 
	7.2.3 Lump Sum Liquidated Damages
	 	 	21	 
	7.3 Remedies Cumulative
	 	 	21	 
	7.4 Effect of Waivers of Default
	 	 	21	 
	7.5 No Accord and Satisfaction; No Surrender
	 	 	21	 
	7.6 Waiver of Jury
	 	 	21	 
	7.7 Landlord’s Curing and Enforcement
	 	 	22	 
	7.8 Landlord’s Default
	 	 	22	 
	7.9 Prevailing Parties
	 	 	22	 
	7.10 Security Deposit
	 	 	22	 
	 
	 	 	 	 
	ARTICLE VIII MISCELLANEOUS PROVISIONS
	 	 	23	 
	 
	 	 	 	 
	8.1 Notice from One Party to the Other
	 	 	23	 
	8.2 Quiet Enjoyment
	 	 	23	 
	8.3 Limitation of Landlord’s Liability
	 	 	23	 
	8.4 Applicable Law and Construction
	 	 	24	 
	8.5 Successors and Assigns
	 	 	24	 
	8.6 Relationship of the Parties
	 	 	24	 
	8.7 Estoppel Certificate
	 	 	24	 
	8.8 Notice of Lease
	 	 	25	 
	8.9 Construction on Adjacent Premises
	 	 	25	 
	8.10 Tenant As Business Entity
	 	 	25	 
	8.11 Parking
	 	 	25	 
	8.12 Renewal Option
	 	 	26	 
	8.13 Expansion Option
	 	 	27	 
	8.14 Exterior Signage
	 	 	28	 
	 
	 	 	 	 
	ARTICLE IX BROKERS
	 	 	28	 
	 
	 	 	 	 
	9.1 Brokers
	 	 	28	 
	 
	 	 	 	 

ii 

 

	 	 	 	 	 
	ARTICLE X LANDLORD’S FINANCING
	 	 	28	 
	 
	 	 	 	 
	10.1 Subordination and Superiority of Lease
	 	 	28	 
	10.2 Rent Assignment
	 	 	29	 
	10.3 Other Instruments
	 	 	29	 
	 
	 	 	 	 
	APPENDIX A PREMISES PLAN
	 	 	A-1	 
	 
	 	 	 	 
	APPENDIX B WORK LETTER
	 	 	B-1	 
	 
	 	 	 	 
	APPENDIX C RULES AND REGULATIONS
	 	 	C-1	 
	 
	 	 	 	 
	APPENDIX D FORM OF LETTER OF CREDIT
	 	 	D-1	 

iii 

 

LEASE

ARTICLE I

FUNDAMENTAL LEASE PROVISIONS

     1.1 Reference Subjects. Each reference in this Lease to any of the following subjects
shall be construed to incorporate the information stated for that subject in this Section.

	 	 	 	 	 
	EFFECTIVE DATE:	 	January 2, 2008
	 
	 	 	 	 
	PREMISES:	 	The entire third (3rd) floor of the Building and a portion of the first
(1st) floor of the Building consisting of approximately 58,863 rentable square
feet, as depicted on Appendix A attached hereto.
	 
	 	 	 	 
	BUILDING:	 	The building located at 26 Forest Street, Marlborough, MA
	 
	 	 	 	 
	PROPERTY:	 	The Building and the land upon which it is located
	 
	 	 	 	 
	LANDLORD:	 	NE Williams II, LLC
	 
	 	 	 	 
	NOTICE ADDRESS	 	c/o Great Point Investors LLC
	     OF LANDLORD:	 	Two Center Plaza, Suite 410
	 
	 	 	 	Boston, MA  02108
	 
	 	 	 	Attn:  Randolph L. Kazazian III
	 
	 	 	 	 
	LANDLORD’S MANAGING	 	National Development
	     AGENT:	 	175 Crossing Blvd., Suite 110
	 
	 	 	 	Framingham, MA  01702
	 
	 	 	 	Attn: David Yancey
	 
	 	 	 	 
	TENANT:	 	Netezza Corp., a Delaware corporation
	 
	 	 	 	 
	NOTICE ADDRESS
OF TENANT:	 	                                                            
	 
	 	 	 	 
	INITIAL TERM:	 	Seven (7) years and three (3) months
	 
	 	 	 	 
	LEASE YEAR:	 	 	 	The first Lease Year of the Term shall commence on the Lease
Commencement Date and end on the last day of the month in which the first (1st) anniversary of the
Lease Commencement Date shall occur (unless the Commencement Date shall occur on the first day of
a month, in which case the first Lease Year shall end on the day before the first (1st)
anniversary of the Commencement Date).  Subsequent Lease Years shall commence on the day after
the last day of the first Lease Year or an anniversary thereof, and shall end on an anniversary
of the last day of the first Lease Year.

 

 

	 	 	 	 	 	 
	LEASE COMMENCEMENT DATE:	 	Ten (10) days after Substantial Completion of Landlord’s Work as provided for in Section
3.2
	 
	 	 	 	 
	LEASE EXPIRATION DATE:	 	The last day of the eighty-seventh (87th) full month after the Lease
Commencement Date
	 
	 	 	 	 
	ANNUAL FIXED RENT:	 	Months 1-3	$0.00
	 
	 	 	 	Months 4-39	$1,309,701.75 ($22.25/RSF)
	 
	 	 	 	Months 40-51	$1,368,564.75 ($23.25/RSF)
	 
	 	 	 	Months 52-87	$1,427,427.75 ($24.25/RSF)
	 
	 	 	 	 
	BASE OPERATING EXPENSE YEAR:	 	Calendar year 2008 (i.e., January 1, 2008 through December 31, 2008)
	 
	 	 	 	 
	BASE TAX YEAR:	 	Calendar year 2008 (i.e., January 1, 2008 through December 31, 2008)
	 
	 	 	 	 
	PARKING SPACES:	 	235 unreserved spaces, which shall be increased by 4 spaces for each 1,000 square feet of
rentable space leased as provided in Section 8.13 (Expansion Option)
	 
	 	 	 	 
	PREMISES RENTABLE AREA:	 	Approximately 58,863 rentable square feet
	 
	 	 	 	 
	TENANT’S PERCENTAGE SHARE:	 	49.5%
	 
	 	 	 	 
	PERMITTED USES:	 	General office use
	 
	 	 	 	 
	PUBLIC LIABILITY INSURANCE:	 	$1,000,000 combined
single limit per occurrence, with $5,000,000 umbrella coverage per occurrence
	 
	 	 	 	 
	BROKERS:	 	Richard Barry Joyce & Partners LLC and Cushman & Wakefield
	 
	 	 	 	 
	SECURITY DEPOSIT:	 	$500,000 letter of credit in the form attached hereto as Appendix D
	 
	 	 	 	 
	APPENDICES:
	 	Appendix A -	 	Premises Plan
	 
	 	Appendix B -	 	Work Letter
	 
	 	Appendix C -	 	Rules and Regulations
	 
	 	Appendix D -	 	Form of Letter of Credit

2

 

ARTICLE II

PREMISES AND TERM

     2.1 Premises. Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord,
the Premises, subject to and with the benefit of the terms, covenants and conditions of this Lease,
and rights, agreements, easements and restrictions of record applicable to the property of which
the Premises are a part, all of which Tenant shall perform and observe insofar as the same are
applicable to the Premises. Subject to the rules and regulations established by Landlord, attached
hereto as Appendix C, as they may be amended from time to time (the “Rules and
Regulations”), Tenant shall have the appurtenant rights in common with others to use (a) the common
lobbies, hallways, stairways and elevators of the Building serving the Premises in common with
others, (b) the exterior walkways, sidewalks and driveways necessary for access to the Premises,
(c) the parking areas serving the Premises and (d) any public cafeteria in the Building or the
project of which the Building is a part. Except as specifically provided herein to the contrary,
all the perimeter walls of the Premises except the interior surfaces thereof, any space in or
adjacent to the Premises used for shafts, stacks, pipes, conduits, wires and appurtenant fixtures,
fan rooms, ducts, electric or other utilities, sinks or other Building facilities, and the use
thereof, are expressly excluded from the Premises and reserved to Landlord. Landlord excepts and
reserves the right from time to time (a) to install, use, maintain, repair, replace and relocate
within the Premises and other parts of the Building, or either, pipes, meters and other equipment,
machinery, apparatus and appurtenant fixtures; and (b) to make additions to the Building and alter
or relocate any entranceways, common areas or other facilities (including without limitation all
access driveways, walkways and parking areas) serving the Premises, which rights shall be subject
to the proviso that there be neither unreasonable obstruction of access to, nor unreasonable
interference with, the use and enjoyment by Tenant of the Premises.

     2.2 Acceptance of Premises. Subject to the completion of Landlord’s Work (as defined
in Appendix B attached hereto), Tenant acknowledges that it has inspected the Premises and
accepts the same in the condition they are in on the Lease Commencement Date, it being expressly
agreed that Landlord shall have no obligation, liability or risk whatsoever with respect to the
Premises or their condition, except as expressly set forth herein; provided, however, the Premises
shall be delivered with the existing supplemental air conditioning units in good working order and
repair. Tenant further acknowledges that neither Landlord nor any agent or employee of Landlord
has made any representations or warranties of any kind, express or implied, concerning the
Premises, their condition or this Lease (including, without limitation, any express or implied
warranties of merchantability, fitness, habitability or suitability for Tenant’s particular
purposes).

     2.3 Term. This Lease is for a Term beginning on the Lease Commencement Date and ending on
the Expiration Date.

ARTICLE III

CONDITION OF PREMISES AND TENANT WORK

     3.1 Initial Construction. As indicated in the Work Letter attached hereto as Appendix
B (the “Work Letter”), Landlord shall complete Landlord’s Work. Except for Landlord’s Work,
Landlord is leasing the Premises to Tenant “as is”, without any representations or warranties of
any kind (including, without limitation, any express or implied warranties of merchantability,
fitness or habitability), subject to all recorded matters, laws, ordinances and governmental
regulations and orders.

     3.2 Delivery of Possession and Commencement Date. For purposes of determining the
Commencement Date only, the Premises shall be considered as delivered upon the first to occur of:

3

 

     (a) the date on which (i) Landlord or Landlord’s architect gives notice of Substantial
Completion (as hereinafter defined) of Landlord’s Work; provided that Substantial Completion has
occurred on said date, and (ii) Landlord has delivered actual possession of the Premises to Tenant
free of all tenants and occupants; or

     (b) if the date of Substantial Completion of Landlord’s Work is delayed by reason of Tenant
Delays (as defined in the Work Letter), the date on which, in Landlord’s reasonable judgment,
Landlord’s Work would have been Substantially Completed but for such Tenant Delays.

     “Substantial Completion” of Landlord’s Work shall mean completion of Landlord’s Work
except for items which can be completed after Tenant’s occupancy without undue interference with
Tenant’s use of the Premises (“Punchlist Items”), as evidenced by (i) a certificate of Landlord’s
architect stating that Landlord’s Work has been substantially completed in accordance with the
plans and specifications therefor, and (ii) a permanent certificate of occupancy (or its
equivalent) for the Premises. Landlord shall use reasonable efforts to complete all Punchlist
Items within thirty days or, if such completion is not feasible for any reason not within the
reasonable control of Landlord, as soon as conditions permit, and Tenant shall afford Landlord
access to the Premises for such purpose pursuant to the terms of this Lease, provided that Landlord
does not unreasonably interfere with Tenant’s use or occupancy of the Premises.

     Notwithstanding the foregoing, if Landlord’s Work is not completed by the date which is 240
days after approval of the Final Plans (as defined in the Work Letter), which date shall be
extended day for day for each day of Tenant Delay or Force Majeure Delay (as defined in the Work
Letter), Tenant, upon thirty (30) days’ written notice to Landlord, may terminate this Lease,
provided, however, that if Landlord’s Work is nonetheless completed within such thirty (30) day
period, Tenant’s notice to terminate shall be deemed null and void.

     Except for latent defects, and except to the extent Tenant shall have given Landlord notice
not later than 60 days after the Commencement Date of defects in Landlord’s Work, Tenant shall have
no claim that Landlord has failed to perform any of Landlord’s Work.

     3.3 Early Access. Landlord shall permit Tenant access (at Tenant’s sole risk) for purposes
of making measurements and installing equipment and furnishings in the Premises prior to Tenant’s
taking possession of the Premises if such can be done without interference with Landlord’s Work in
the Premises and in harmony with Landlord’s contractors and subcontractors. Any interference with
Landlord’s Work shall be deemed a Tenant Delay.

     3.4 General Provisions Applicable to Construction. Tenant shall not make any
installations, alterations, additions, or improvements in or to the Premises, including, without
limitation, any apertures in the walls, partitions, ceilings or floors, without on each occasion
obtaining the prior written consent of Landlord, which shall not be unreasonably withheld. Tenant
shall reimburse Landlord for all reasonable costs incurred by Landlord or any Superior Mortgagee
(as defined below) in reviewing Tenant’s proposed installation, alterations, additions or
improvements. Any such work so approved by Landlord shall be performed only in accordance with
plans and specifications therefor approved by Landlord. Tenant shall procure at Tenant’s sole
expense all necessary permits and licenses before undertaking any work on the Premises and shall
perform all such work in a good and workmanlike manner employing materials of good quality and so
as to conform with all applicable insurance requirements, laws, ordinances, regulations and orders
of governmental authorities. Tenant shall employ for
such work only contractors approved by Landlord and shall require all contractors employed by
Tenant to carry worker’s compensation insurance in accordance with statutory requirements and
commercial general liability insurance covering such contractors on or about the Premises with a
combined single limit not less than $3,000,000 and shall submit certificates evidencing such
coverage to Landlord prior to the commencement of such work. Tenant shall indemnify

4

 

and hold
harmless Landlord from all injury, loss, claims or damage to any person or property occasioned by
or growing out of such work. Landlord may inspect the work of Tenant at reasonable times and give
notice of observed defects. Upon completion of any such work, Tenant shall provide Landlord with
“as built” plans, if applicable, copies of all construction contracts and proof of payment for all
labor and materials.

Tenant covenants and agrees that with respect to the carpentry work on any and all alterations,
improvements and/or additions that are made to the Premises, Tenant’s construction managers,
general contractors and subcontractors shall be signatory to and in good standing under the
Carpenters Union collective bargaining agreement covering the geographical area where the work is
performed, and with respect to non-carpentry work, wherever possible, such work shall be performed
by contractors signatory to and in good standing under the collective bargaining agreement of the
local building trades union affiliated with the AFL-CIO which covers that work. If the
construction manager, general contractor and/or subcontractor with responsibility for the carpentry
work is not signatory to and in good standing under the Carpenters Union’s collective bargaining
agreement, then the Landlord shall have the right, upon 24 hours’ written notice to Tenant, to
order Tenant to cease all work on the Premises, in which event all work then in progress shall be
halted and shall not be recommenced until and unless Tenant’s construction manager, general
contractor and/or subcontractor becomes subject to or covered by and in good standing under the
Carpenters Union’s collective bargaining agreement.

ARTICLE IV

RENT

     4.1 Annual Fixed Rent. Annual Fixed Rent during the Term of this Lease shall be the amount
per annum set forth in Section 1.1.

     4.2 Method of Payment. Tenant covenants and agrees to pay the Annual Fixed Rent to
Landlord in advance in equal monthly installments (or in the appropriate monthly installments for
monthly periods during any Lease Year) on the first day of each calendar month during the Term
beginning on the Lease Commencement Date. Tenant shall make ratable payment of Annual Fixed Rent
for any portion of a Lease Year (or month) in which the same accrues, all payments of Annual Fixed
Rent and additional rent and other sums due hereunder to be paid in current U.S. exchange at the
Original Address of Landlord or such other place as Landlord may by notice in writing to Tenant
from time to time, without demand and without set-off or deduction.

     Without limiting the generality of the foregoing, except as expressly provided otherwise
herein, Tenant’s obligation so to pay shall not be discharged or otherwise affected by reason of
the application of any law or regulation now or hereafter applicable to the Premises, or any other
restriction of or interference with the use thereof by Tenant, or any damage to or destruction of
the Premises by casualty or taking, or on account of any failure by Landlord to perform hereunder
or otherwise, or due to any other occurrence; nor shall Tenant ever be entitled and Tenant hereby
waives all rights now or hereafter conferred by statute or otherwise to quit, terminate or
surrender this Lease or the Premises or any part thereof, or to assert any defense in the nature of
constructive eviction to any action seeking to recover rent. Tenant shall, however, have and
maintain, subject to the provisions hereof, the right to seek and obtain from time to time
judgments for actual damages occasioned by Landlord’s breach of the covenants of this Lease.

     4.3 Net Return to Landlord. It is intended that Annual Fixed Rent payable hereunder shall
be a net return to Landlord throughout the Term, free of expense, charge, offset, diminution or
other deduction whatsoever on account of the Premises (excepting financing expenses, federal and
state income taxes of general application and those expenses which this Lease expressly makes the
responsibility of Landlord), and all provisions hereof shall be construed in terms of such intent.

5

 

     4.4 Additional Rent.

          4.4.1
Additional Rent - Landlord’s Taxes. Tenant covenants and agrees to pay to Landlord,
as additional rent, an escalation charge calculated as Tenant’s Percentage Share of the increase in
Landlord’s Taxes (hereafter defined) for each fiscal tax period, or ratable portion thereof,
included in the Lease Term over the Base Taxes (hereinafter defined). Tenant shall make estimated
payments on account of increases in Landlord’s Taxes above the Base Taxes in monthly installments
on the first day of each month, in amounts reasonably estimated from time to time by Landlord to
provide for the full payment of Tenant’s obligation with respect to Landlord’s Taxes on the date
such Taxes are due, and with a final payment adjustment between the parties within fourteen (14)
days after Landlord provides Tenant a statement of Landlord’s Taxes and Tenant’s Share of the
increase of such Taxes above Base Taxes for Landlord’s most recent tax year. “Base Taxes” as used
herein means the amount of Landlord’s Taxes for the Base Tax Year. This section shall survive the
expiration or earlier termination of this Lease.

          4.4.2
Landlord’s Taxes - Definition. As used in this Lease, the term “Landlord’s Taxes”
shall mean all taxes, assessments, betterments, excises, user fees and all other governmental
charges and fees of any kind or nature, or impositions or agreed payments in lieu thereof or
voluntary payments made in connection with the provision of governmental services or improvements
of benefit to the Building (including any so-called linkage, impact or voluntary betterment
payments), and all penalties and interest thereon (if due to Tenant’s failure to make timely
payments on account of Landlord’s taxes), assessed or imposed against the Premises or the property
of which the Premises are a part (including without limitation any personal property taxes levied
on such property or on fixtures or equipment used in connection therewith). Notwithstanding the
foregoing, “Landlord’s Taxes” shall not include any income, capital, stock, succession, transfer,
franchise, gift, estate or inheritance taxes except to the extent that such taxes shall be imposed
in lieu of any ad valorem taxes on the Premises or the property of which it is a part, nor shall
“Landlord’s Taxes” include any assessments, charges, taxes, rents, fees, rates, levies, excises,
license fees, permit fees, inspection fees, or other authorization fees or charges to the extent
allocable to or caused by the development or installation of on- or off-site improvements or
utilities necessary for the initial development or construction of the Building. If during the Term
the present system of ad valorem taxation of property shall be changed so that, in lieu of or in
addition to the whole or any part of such ad valorem tax, there shall be assessed, levied or
imposed on such property or Premises or on Landlord any kind or nature of federal, state, county,
municipal or other governmental capital levy, income, sales, franchise, excise or similar tax,
assessment, levy, charge or fee (as distinct from the federal and state income tax in effect on the
Lease Commencement Date) measured by or based in whole or in part upon Building valuation, mortgage
valuation, rents or any other incidents, benefits or measures of real property or real property
operations, then any and all of such taxes, assessments, levies, charges and fees shall be included
within the term Landlord’s Taxes. Landlord’s Taxes include reasonable expenses, including fees of
attorneys, appraisers and other consultants, incurred in connection with any efforts to obtain
abatements or reductions or to assure maintenance of Landlord’s Taxes for any tax fiscal year
wholly or partially included in the Term, whether or not successful and whether or not such efforts
involve filing of actual abatement applications or initiation of formal proceedings. If Landlord
obtains any refunds of Landlord’s Taxes regarding periods for which Tenant has paid any portion
thereof, Tenant shall be credited or shall receive its allocable portion of such refund.

          4.4.3
Additional Rent - Operating Expenses. Tenant covenants and agrees to pay to
Landlord, as additional rent, an escalation charge calculated as Tenant’s Percentage Share of the
increase in Landlord’s Operating Expenses (hereafter defined) for each of Landlord’s calendar
years, or ratable portion thereof, included in the Lease Term above Base Operating Expenses
(hereinafter defined). Tenant shall make estimated payments on account of increases in Operating
Expenses in monthly installments on the first day of each month in advance, based on amounts
reasonably estimated from time to time by Landlord, and 

6

 

with a final payment adjustment between the
parties within fourteen (14) days after Landlord provides Tenant a statement of Landlord’s
Operating Expenses and Tenant’s Share of the increase of such Operating Expenses over Base
Operating Expenses for Landlord’s most recent calendar year.
“Base Operating Expenses” as used
herein means the amount of Operating Expenses for the Base Operating Expense Year. This section
shall survive the expiration or earlier termination of this Lease.

          4.4.4
Landlord’s Operating Expenses – Definition. “Landlord’s Operating Expenses” means
all costs paid or incurred in servicing, operating, managing, maintaining, and repairing the
Property and the facilities and appurtenances thereto, including, without limitation, the costs of
the following: (i) supplies, materials and total wage and labor costs and all costs and expenses
of independent contractors paid or incurred on account of all persons engaged in the operation,
maintenance, security, cleaning and repair of the Building and the land, facilities and
appurtenances thereto, including social security, unemployment compensation, pension, vacation,
sick pay and other so-called “fringe benefits”; (ii) services furnished generally to tenants of the
Building by Landlord; (iii) utilities consumed and expenses incurred in the operation of the
Property and the land, facilities and appurtenances thereto; (iv) casualty, liability, workmen’s
compensation and all other insurance expenses (and the amount of any deductible in the event of an
insured loss), all insurance to be in such amounts and insuring against such risks as Landlord may,
in its sole discretion from time to time decide; (v) snow removal, planting, landscaping, grounds
and parking operation, maintenance and repair expenses and any charges payable pursuant to any
declarations or recorded covenants; (vi) management fees which do not exceed three percent (3%) of
the Property’s gross receipts (or 4% of such amount in the event Landlord’s affiliate sells either
the building located at 62 Forest Street, Marlborough, Massachusetts or the Property to an
unaffiliated purchaser but does not sell the other property to such purchaser or its affiliates)
and which does not exceed those fees customarily paid with respect to buildings in the area which
are similar to the Building, and fees for required licenses or permits; (vii) rental or reasonable
depreciation of equipment used in the operation of the Building and the land, facilities and
appurtenances thereto, and personal property taxes assessed upon such equipment; and (viii) costs
of operating any Building amenities including, without limitation, cafeterias and shower and locker
facilities, provided, however, that Tenant’s contribution with respect to the cafeteria shall not
exceed $1,150 per month ($13,800 per annum). In addition, if Landlord from time to time repairs or
replaces any Building components, improvements or equipment or installs any new components,
improvements or equipment to the Building (including without limitation energy conservation
improvements or other improvements), then the cost of such items amortized over their reasonable
life, together with an actual or imputed interest rate (at the level then being charged by
institutional first mortgagees for new permanent first mortgage loans on buildings in the area
which are similar to the Building) shall be included in Landlord’s Operating Expenses. Landlord’s
Operating Expenses shall not include payments of principal, interest or other charges on mortgages
or payments of any rent by Landlord on account of any ground lease of the land on which the
Building is situated or any lease of the Building; costs of work or services for particular tenants
separately reimbursable to Landlord by such tenants; advertising, marketing costs and leasing
commissions; and costs of so-called leasehold improvements to rentable areas in the Building.

Notwithstanding anything to the contrary set forth in this Lease, Landlord’s Operating Expenses
shall not include the following:

     (i) Bad debt expenses and interest, principal, points and fees on debts or amortization on any
mortgage or other debt instrument encumbering the Property;

     (ii) Costs incurred by Landlord to the extent Landlord is reimbursed by insurance proceeds or
is otherwise reimbursed;

     (iii) Depreciation, amortization and interest payments, except on equipment, materials, tools,
supplies and vendor-type equipment purchased by Landlord to enable Landlord to supply services
Landlord 

7

 

might otherwise contract for with a third party, all as determined in accordance with
generally accepted accounting principles, consistently applied, amortized over such item’s
reasonably anticipated useful life;

     (iv) Advertising and promotional expenditures;

     (v) Marketing costs, including leasing commissions, attorneys’ fees (in connection with the
negotiation and preparation of letters, deal memos, letters of intent, leases, subleases and/or
assignments), space planning costs, and other costs and expenses incurred in connection with lease,
sublease and/or assignment negotiations and transactions with present or prospective tenants of the
Building;

     (vi) Costs, including permit, license and inspection costs, incurred with respect to the
installation of tenants’ or other occupants’ improvements or incurred in renovating or otherwise
improving, decorating, painting or redecorating vacant space for tenants and other occupants of the
Building;

     (vii) Expenses in connection with services or other benefits which are not offered to Tenant
or for which Tenant is charged directly;

     (viii) Costs incurred by Landlord due to the violation by Landlord or any tenant of the terms
and conditions of any lease of space in the Building;

     (ix) Management fees paid or charged by Landlord in connection with the management of the
Building to the extent such management fee is in excess of the management fee customarily paid or
charged by landlords of comparable buildings in the vicinity of the Building;

     (x) Salaries and other benefits paid to the employees of Landlord to the extent customarily
included in or covered by a management fee, provided that in no event shall Landlord’s Operating
Expenses include salaries and/or benefits attributable to personnel above the level of Building
manager;

     (xi) Rent for any office space occupied by Building management personnel to the extent the
size or rental rate of such office space exceeds the size or fair market rental value of office
space occupied by management personnel of comparable buildings in the vicinity of the Building;

     (xii) Amounts paid to Landlord or to subsidiaries or affiliates of Landlord for goods and/or
services in the Building to the extent the same exceeds the costs of such goods and/or services
rendered by unaffiliated third parties on a competitive basis;

     (xiii) Landlord’s general corporate overhead and general administrative expenses;

     (xiv) Any compensation paid to clerks, attendants or other persons in commercial concessions
operated by Landlord;

     (xv) Services provided, taxes attributable to and costs incurred in connection with the
operation of any retail, restaurant (other than the cafeteria) and garage operations for the
Building, and any replacement garages or parking facilities and any shuttle services;

     (xvi) Costs incurred in connection with upgrading the Building to comply with laws, rules,
regulations and codes in effect prior to the Lease Commencement Date;

     (xvii) All assessments and premiums which are not specifically charged to Tenant because of
what Tenant has done, which can be paid by Landlord in installments, shall be paid by Landlord in
the maximum 

8

 

number of installments permitted by law and not included as Landlord’s Operating
Expenses except in the year in which the assessment or premium installment is actually paid;

     (xviii) Costs arising from the negligence or willful misconduct of Landlord or other tenants
or occupants of the Building or their respective agents, employees, licensees, vendors, contractors
or providers of materials or services;

     (xix) Costs arising from Landlord’s charitable or political contributions;

     (xx) Costs arising from latent defects or repair thereof;

     (xxi) Costs associated with the operation of the business of the entity which constitutes
Landlord as the same are distinguished from the costs of operation of the Building, including
accounting and legal matters, costs of defending any lawsuits with any mortgagee (except as the
actions of Tenant may be in issue), costs of selling, syndicating, financing, mortgaging or
hypothecating any of Landlord’s interest in the Building, costs incurred in connection with any
disputes between Landlord and its employees, between Landlord and Building management, or between
Landlord and other tenants or occupants; and

     (xxii) Costs for capital improvements, capital repairs and any other capital costs as
determined under generally accepted accounting principles except for capital improvements and
capital repairs required by any laws not in existence and not in effect as of the Lease
Commencement Date and capital repairs to the roof, in either of which case such costs shall be
capitalized and amortized over their useful life determined in accordance with generally accepted
accounting principles.

     4.5 Allocation of Certain Operating Expenses. If at any time during the Term, Landlord
provides services only with respect to portions of the Building which include the Premises or
incurs other Operating Expenses allocable to portions of the Building which include the Premises
alone, then such Operating Expenses shall be charged entirely to those tenants, including Tenant,
of such portions, notwithstanding the provisions hereof referring to Tenant’s Percentage Share.
If, during any period for which Landlord’s Operating Expenses are being computed (including the
Base Operating Expense Year), less than all of the Building is occupied by tenants, or if Landlord
is not supplying all tenants with the services being supplied hereunder, Operating Expenses shall
be reasonably estimated and extrapolated by Landlord to determine the Operating Expenses that would
have been incurred if the Building were fully occupied for such year and such services were being
supplied to all tenants, and such estimated and extrapolated amount shall be deemed to be
Landlord’s Operating Expenses for such period. In the event Landlord incurs costs or expenses
associated with or relating to separate items or categories of Landlord’s Operating Expenses which
were not part of Landlord’s Operating Expenses during the entire calendar year 2008, and such item
is a standard or recurring expense, Landlord’s Operating Expenses for calendar year 2008 shall be
deemed increased by the amount Landlord would have incurred during the calendar year 2008 with
respect to such costs and expenses had such separate items or categories of Landlord’s Operating
Expenses been included in Landlord’s Operating Expenses during the entire calendar year 2008. As
an illustration of the foregoing, any additional annual premiums resulting from new
forms of insurance, any increase in insurance limits or coverage in any year after calendar year
2008 shall be deemed to be included in Landlord’s Operating Expenses for calendar year 2008.

     4.6 Electricity. The Premises shall be separately metered, and Tenant shall pay, as
Additional Rent, all costs of its electricity usage directly to the appropriate utility company,
and shall provide to Landlord, at Landlord’s request, proof of such payments.

     4.7 Audit. At the request of Tenant at any time within sixty (60) days after Landlord
delivers Landlord’s statement of Operating Expenses to Tenant, Tenant (at Tenant’s expense) shall
have the right to 

9

 

examine Landlord’s books and records applicable to Landlord’s Operating Expenses.
Such right to examine the records shall be exercisable: (i) upon reasonable advance notice to
Landlord and at reasonable times during Landlord’s business hours; (ii) only during the 120-day
period following Tenant’s receipt of Landlord’s statement of the actual amount of Landlord’s
Operating Expenses for the applicable calendar year; and (iii) not more than once each calendar
year. In the event (a) an audit of Landlord’s Operating Expenses for such year, conducted by an
independent certified public accountant retained by Tenant or an auditing firm approved by Landlord
for such purpose, indicates that certain items were improperly included in Landlord’s Operating
Expenses and resulted in an overcharge of 5% or more to Tenant and (b) an independent certified
public accountant retained by Landlord at Landlord’s expense agrees with the results of said audit,
then Landlord shall refund the overage to Tenant and pay the reasonable cost of the audit.

ARTICLE V

ADDITIONAL COVENANTS

     5.1 Tenant’s Covenants. Tenant covenants that at all times during the Term and such
further time as Tenant (or persons claiming by, through or under it) occupies the Premises or any
part thereof, it shall perform and observe the following conditions, all at its sole cost and
expense:

          5.1.1 Utilities and Services. Tenant shall provide and pay all charges and deposits for
gas, water, sewer, electricity, and other energy, utilities and services if and to the extent used
or consumed on the Premises and not included in the Operating Expenses of the Building during the
Term which now or hereafter separately serve the Premises, or are not expressly to be provided by
Landlord elsewhere hereunder. It is understood and agreed that except as may be expressly provided
hereunder, Landlord shall be under no obligation whatsoever to furnish any such services to the
Premises, and shall not be liable for (nor suffer any reduction in any rent on account of) any
interruption or failure in the supply of the same.

          5.1.2 Maintenance. Tenant shall maintain, repair and secure the Premises, all improvements
and appurtenances thereto, all access areas thereof, and all utilities, facilities, installations
and equipment used in connection therewith, and shall pay all costs and expenses of so doing,
keeping the Premises in good order, repair and condition, reasonable wear and tear, and damage by
casualty and taking (to the extent provided in Article VI only) excepted. Tenant will maintain a
preventive maintenance contract providing for the regular inspection and maintenance of the
supplemental air conditioning system and the UPS system exclusively serving the Premises with an
appropriate contractor or contractors, such contracts and contractors to be reasonably approved by
Landlord. At Landlord’s request, Tenant shall provide copies of the service contracts and service
logs. Without limiting the generality of the foregoing, Tenant shall keep all interior walls,
floor
surfaces and coverings, glass, windows, doors, partitions, all fixtures and equipment, utilities,
pipes and drains and other installations used in connection with the Premises in such good order,
repair and condition.

          5.1.3 Use and Compliance with Law. Tenant shall use the Premises continuously and
uninterruptedly only for the Permitted Uses, and then only as permitted under federal, state, and
local laws, regulations and orders applicable from time to time, including without limitation
municipal bylaws, land use and zoning laws, environmental laws and regulations (including all laws
and regulations regulating the production, use, and disposal of any pollutant or toxic or hazardous
material), and occupational health and safety laws, and shall procure all approvals, licenses and
permits necessary therefor, in each case giving Landlord true and complete copies of the same and
all applications therefor. Tenant shall promptly comply with all present and future laws
applicable to Tenant’s use of the Premises or Tenant’s signs thereon, foreseen or unforeseen, and
whether or not the same necessitate structural or other extraordinary changes or improvements to
the Premises or interfere with its particular use and enjoyment of the Premises, and shall keep the
Premises equipped with adequate safety appliances and comply with all
requirements reasonable in

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light of the use Tenant is making of the Premises. If Tenant’s use of the Premises results in any
increase in the premium for any insurance carried by Landlord, then upon Landlord’s notice to
Tenant of such increase Tenant shall pay the same to Landlord upon demand as additional rent.
Tenant shall, in any event, indemnify, save Landlord harmless, and defend from all loss, claim,
damage, cost or expense (including reasonable attorneys’ fees of counsel of Landlord’s choice
against whom Tenant makes no reasonable objection) on account of Tenant’s failure so to comply with
the obligations of this Section (paying the same to Landlord upon demand as Additional Rent).
Tenant’s obligations in the preceding sentence shall survive the expiration or earlier termination
of this Lease. Tenant shall conform to the Rules and Regulations from time to time promulgated by
Landlord for the operation, care and use of the common areas of the Building and appurtenant
improvements and areas in which Tenant is granted rights of use by the terms of this Lease.
Notwithstanding the foregoing or any other provision of this Lease, however, Tenant shall not be
responsible for compliance with any such laws, regulations or the like requiring (i) structural
repairs or modifications or (ii) repairs or modifications to the utility or building service
equipment or (iii) installation of new building service equipment, such as fire detection or
suppression equipment, unless such repairs, modifications, or installations shall (a) be due to
Tenant’s particular manner of use of the Premises (as opposed to dry laboratory use and office use
generally), or (b) be due to the negligence or willful misconduct of Tenant or any agent, employee
or contractor of Tenant.

          5.1.4 Liens and Encumbrances. Tenant shall not create or suffer, shall keep Landlord’s
property, the Premises and Tenant’s leasehold free of, and shall promptly remove and discharge, any
lien, notice of contract, charge, security interest, mortgage or other encumbrance which arises for
any reason, voluntarily or involuntarily, as a result of any act or omission by Tenant or persons
claiming by, through or under Tenant, or any of their agents, employees or independent contractors,
including without limitation liens which arise by reason of labor or materials furnished or claimed
to have been furnished to Tenant or for the Premises.

          5.1.5 Waiver and Indemnity.

               5.1.5.1 Waiver. Tenant releases Landlord, Landlord’s mortgagee, Landlord’s property
manager and their respective agents and employees from, and waives all claims for, damage or injury
to person or property and loss of business sustained by Tenant and resulting from the Building or
the Premises or any part thereof or any equipment therein becoming in disrepair, or resulting from
any accident in or about the Building. This paragraph shall apply particularly, but not
exclusively, to flooding, damage caused by Building equipment and apparatus, water, snow, frost,
steam, excessive heat or cold, broken glass, sewage, gas, odors, excessive noise or vibration or
the bursting or leaking of pipes, plumbing fixtures or sprinkler devices. Without limiting the
generality of the foregoing, Tenant waives all claims and rights of recovery against Landlord, its
property manager and their respective agents and employees for any loss or damage to any property
of Tenant, which loss or damage is insured against, or required to be insured against, by Tenant
pursuant to Section 6.1 hereof, whether or not such loss or damage is due to the fault or
negligence of Landlord, its property manager or their respective agents or employees, and
regardless of the amount of insurance proceeds collected or collectible under any insurance
policies in effect.

               5.1.5.2 Indemnity. Tenant agrees to indemnify, defend and hold harmless Landlord,
Landlord’s mortgagee, Landlord’s property manager, members, officers and lenders and their
respective agents and employees, from and against any and all claims, demands, actions,
liabilities, damages, costs and expenses (including attorneys’ fees), for injuries to any persons
and damage to or theft or misappropriation or loss of property occurring in or about the Building
and arising from the use and occupancy of the Premises or from any activity, work, or thing done,
permitted or suffered by Tenant in or about the Premises (including, without limitation, any
alteration by Tenant) or from any breach or default on the part of Tenant in the performance of any
covenant or agreement on the part of Tenant to be performed under this Lease or due to any other
act or omission of Tenant, its subtenants, assignees, invitees, 

11

 

employees, contractors and agents. Without limiting the foregoing, Tenant shall indemnify, defend and hold Landlord, Landlord’s
property manager and Landlord’s mortgagee harmless from any claims, liabilities, damages, costs and
expenses arising out of the use or storage of hazardous or toxic materials in the Building by
Tenant. If any such proceeding is filed against Landlord or any such indemnified party, Tenant
agrees to defend Landlord or such party in such proceeding at Tenant’s sole cost by legal counsel
reasonably satisfactory to Landlord, if requested by Landlord.

The provisions of Section 5.1.5 shall survive the expiration or earlier termination of this Lease.

          5.1.6 Landlord’s Right to Enter. Landlord and its agents or employees may upon reasonable
notice enter the Premises during business hours (and in case of emergency at any time) for the
purpose of performing repairs or replacements, or exercising any of the rights reserved to Landlord
herein, or securing or protecting Landlord’s property or the Premises, or removing any alterations
or additions not consented to by Landlord, and similarly upon reasonable notice may show the
Premises to prospective purchasers and lenders, and during the last 12 months of the Term to
prospective tenants, and may keep affixed in suitable places notices for letting and selling.
Except in case of emergency, Landlord shall be subject in entering the Premises to reasonable
security conditions, if any, set forth by Tenant in writing to Landlord.

          5.1.7 Personal Property at Tenant’s Risk. Landlord’s obligation or election to repair or
restore the Premises under this Lease shall not include the repair, restoration or replacement of
the furniture or any other personal property owned by or in the possession of Tenant, all of which
shall be at Tenant’s sole risk.

          5.1.8 Overloading, Nuisance, Etc.. Tenant shall not, either with or without negligence,
injure, overload, deface, damage or otherwise harm Landlord’s property, the Premises or any part or
component thereof; commit any nuisance; permit the emission of any hazardous agents or substances;
allow the release or other escape of any biologically or chemically active or other hazardous
substances or materials so as to impregnate, impair or in any manner affect, even temporarily, any
element or part of Landlord’s property or the Premises or allow the storage or use of such
substances or materials in any manner not sanctioned by law or by the highest standards prevailing
in the industry for the storage and use of such substances or materials; nor shall Tenant bring
onto the Premises any such materials or substances except to use in the ordinary course of Tenant’s
business, and then only after written notice is given to Landlord of the identity of such
substances or materials; permit the occurrence of objectionable noise or odors; or make, allow or
suffer any waste whatsoever to Landlord’s
property or the Premises. Landlord may inspect the Premises from time to time, and Tenant will
cooperate with such inspections. Without limitation, “hazardous substances” shall include such
substances described in the Comprehensive Environmental Response, Compensation and Liability Act of
1980, as amended, 42 U.S.C. §9601 et seq. and the regulations adopted thereunder, and “hazardous
materials” shall include such materials described in the Resource Conservation and Recovery Act, as
amended, 42 U.S.C. §6901 et seq.; in the Massachusetts Hazardous Waste Management Act, as amended,
M.G.L. Chapter 21, and oil and hazardous materials as defined in the Massachusetts Oil and
Hazardous Material Release Prevention Act, as amended, M.G.L., Chapter 21E, and the regulations
adopted under these acts. In addition, Tenant shall execute affidavits, representations and the
like from time to time at Landlord’s request concerning Tenant’s best knowledge and belief
regarding the presence or absence of hazardous materials and substances on the Premises or
Property. In all events, Tenant shall indemnify Landlord, Landlord’s property manager, and
Landlord’s mortgagees as provided in Section 5.1.5 from any liability arising from or related to
the release or threatened release of hazardous materials and substances on the Premises. (At the
request of Landlord, Tenant will from time to time confirm such indemnity to mortgagees directly
with such mortgagees.) The provisions of this Section 5.1.8 shall survive the expiration or
earlier termination of this Lease.

12

 

          5.1.9 Yield Up. At the expiration or earlier termination of this Lease, Tenant (and all
persons claiming by, through or under it) shall, without the necessity of any notice, surrender the
Premises (including all Tenant Work, and all replacements thereof, except such additions,
alterations and other Tenant Work as Landlord may direct to be removed, which shall be removed by
Tenant and the Premises restored to their pre-existing condition) and all keys to the Premises,
remove all of its trade fixtures and personal property not bolted or otherwise attached to the
Premises (and such trade fixtures and other property bolted or attached to the Premises as Landlord
may direct), and all Tenant’s signs wherever located, in each case repairing damage to the Premises
and Property which results in the course of such removal and restoring the Premises and Property to
a fully functional and tenantable condition (including the filling of all floor holes, the removal
of all disconnected wiring back to junction boxes and the replacement
of all damaged ceiling tiles). Tenant shall yield up the Premises broom-clean and in good order, repair and condition,
reasonable wear and tear and damage by casualty and taking (to the extent provided in Article VI
only) excepted. Any property not so removed within thirty (30) days after the expiration or
termination of the Lease shall be deemed abandoned and may be removed and disposed of by Landlord
in such manner as Landlord shall determine, and Tenant shall pay to Landlord the entire cost and
expense incurred by it in effecting such removal and disposition and in making any incidental
repairs to the Premises.

          5.1.10 Holding Over. If Tenant (or anyone claiming by, through or under Tenant) shall
remain in possession of the Premises or any part thereof after the expiration or earlier
termination of this Lease with respect to any portion of the Premises without any agreement in
writing executed with Landlord, the person remaining in possession shall be deemed a tenant at
sufferance, Tenant shall thereafter pay Annual Fixed Rent at one hundred fifty percent (150%) of
the amount payable for the twelve-month period immediately preceding such expiration or termination
and with all additional rent payable and covenants of Tenant in force as otherwise herein provided,
and Tenant shall be liable to Landlord for all damages, including consequential damages, of such
breach. After acceptance of the full amount of such rent by Landlord the person remaining in
possession shall be deemed a tenant from month-to-month, terminable at any time by unilateral
action of Landlord or Tenant, at such rent and otherwise subject to and having agreed to perform
all of the provisions of this Lease, but Landlord will not be deemed to have relinquished any
claims for damages.

          5.1.11 Assignment, Subletting.

               (a) Tenant shall not, without the prior written consent of Landlord, which shall not be
unreasonably withheld, conditioned or delayed: (i) assign, convey, mortgage or otherwise transfer
this Lease or any interest hereunder, or sublease the Premises, or any part thereof, whether
voluntarily or by operation of law; or (ii) permit the use of the Premises or any part thereof by
any person other than Tenant and its employees. Any such transfer, sublease or use described in
the preceding sentence (herein referred to as a “Transfer”, which term shall include any
reassignment of this Lease after any initial assignment of this Lease by the Tenant named herein,
or any subsequent reassignment and any assignment of any sublease with respect to all or any
portion of the Premises and any sub-subleasing of any portion of the Premises previously subleased)
occurring without the prior written consent of Landlord shall be void and of no effect. Landlord’s
consent to any Transfer shall not constitute a waiver of Landlord’s right to withhold its consent
to any future Transfer. Landlord’s consent to any Transfer or acceptance of rent from any party
other than Tenant shall not release Tenant from any covenant or obligation under this Lease.
Landlord may require as a condition to its consent to any assignment of this Lease that the
assignee execute an instrument in which such assignee assumes the obligations of Tenant hereunder.
For the purposes of this paragraph, the transfer (whether direct or indirect) of all or a majority
of the capital stock in a corporate Tenant (other than the shares of the capital stock of a
corporate Tenant whose stock is publicly traded), or the merger, consolidation or reorganization of
such Tenant, or the transfer of all or any general partnership interest in any partnership, or the
transfer of any membership interest in any limited liability company, shall be considered a
Transfer.

13

 

               (b) If
Tenant desires the consent of Landlord to a transfer, Tenant shall
submit to Landlord, at least thirty (30) days prior to the
proposed effective date of the Transfer, a written notice which
includes such information as Landlord may require about the proposed
Transfer and the transferee, including: (i) the name,
business and financial condition of the prospective transferee,
(ii)n a true and complete copy of the proposed instrument
containing all of the terms and condition of such transfer,
(iii) a written agreement of the assignee, subtenant or
licensee, in recordable form reasonably approved by Landlord,
agreeing with Landlord to perform and observe all of the terms,
covenants, and conditions of this Lease, and (iv) such other
factors as Landlord may reasonably deem relevant. If Landlord does
not terminate this Lease, in whole or in part, pursuant to
Section 5.1.11(c), Landlord shall not unreasonably withhold its
consent to any assignment or sublease. Landlord shall not be deemed
to have unreasonably withheld its consent if, in the judgment of
Landlord: (i) the transferee is of a character or engaged
in a business which is not in keeping with the standards or criteria used by Landlord in leasing the Building; (ii) the
financial condition of the transferee is such that it may not be able to perform its obligations in
connection with this Lease; (iii) the purpose for which the transferee intends to use the Premises
or portion thereof is in violation of the terms of this Lease or the lease of any other tenant in
the Building; (iv) the transferee is a tenant of the Building; (v) consent to the Transfer would
violate any provisions of a Superior Mortgage, or (vi) any other basis which Landlord reasonably
deems appropriate. If Landlord wrongfully withholds its consent to any Transfer, Tenant’s sole and
exclusive remedy therefor, shall be to seek specific performance of Landlord’s obligation to
consent to such Transfer. Tenant shall pay to Landlord any attorneys’ fees and expenses incurred by
Landlord in connection with any proposed Transfer, whether or not Landlord consents to such
Transfer, which fees shall not exceed $1,000.

               (c) Other than with respect to a Transfer permitted by subsection (d) below, Landlord shall
have the right to terminate this Lease as to that portion of the Premises covered by a Transfer.
Landlord may exercise such right to terminate by giving notice to Tenant at any time within thirty
(30) days after the date on which Tenant has furnished to Landlord all of the items required under
Section 5.1.11(b) above. If Landlord exercises such right to terminate, Landlord shall be entitled
to recover possession of, and Tenant shall surrender such portion of, the Premises (with
appropriate demising partitions erected at the expense of Tenant) on the later of (i) the effective
date of the proposed Transfer, or (ii) sixty (60) days after the date of Landlord’s notice of
termination. Notwithstanding the foregoing, if Landlord elects to terminate this Lease as to that
portion of the Premises covered by a Transfer, Tenant may elect to withdraw its request for consent
to the Transfer within five (5) business days of receipt of Landlord’s notice of election to
terminate. In the event Landlord exercises such right to terminate, Landlord shall have the
right to enter into a lease with the proposed transferee without incurring any liability to Tenant
on account thereof.

               (d) Notwithstanding the prohibitions set forth in subsection (a) above, Tenant may, without
Landlord’s consent, assign its interest in this Lease or sublet the Premises to a corporation or
other entity which shall (i) control, be under the control of, or be under common control with,
Tenant (the term “control” as used herein shall mean ownership of more than 50% of the outstanding
voting stock of a corporation, or other equivalent equity and control interest if Tenant is not a
corporation), or (ii) result from the merger or consolidation of or into Tenant or be the purchaser
of all or substantially all of Tenant’s assets, so long as (A) the principal purpose of such
assignment or sublease is not the acquisition of Tenant’s interest in this Lease (except if such
assignment or sublease is made for a valid intracorporate business purpose to an entity described
in clause (iii) above) and is not made to circumvent the provisions of this section, (B) the Tenant
named herein shall remain liable for all obligations of Tenant under this Lease, (C) prior to such
assignment, such assignee shall enter into a written agreement with Landlord agreeing to be
directly bound to Landlord under the terms of this Lease and (D) Tenant provides at least thirty
(30) days’ prior written notice to Landlord of such assignment or sublease and copies of any
relevant documentation relating to same.

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               (e) In no event shall any Transfer release or relieve Tenant from its obligations to fully
observe or perform all of the terms, covenants and conditions of this Lease on its part to be
observed or performed. It is agreed that the liabilities and obligations of Tenant hereunder are
enforceable either before, simultaneously with, or after proceeding against any assignee, sublessee
or other transferee of Tenant. Further, Tenant agrees that the amount of any rent or other payment
for the use or occupancy of all or any part of the Premises, by sublease, license, assignment of
this Lease, or otherwise, shall not depend, in whole or in part, on the income or profits derived
by any person or entity from the Premises, other than an amount based on a fixed percentage or
percentages of gross receipts or sales.

               (f) Notwithstanding any transfer of this Lease, Tenant’s (and any guarantor’s) liability to
Landlord shall in all events remain direct and primary. Any transferee of all or a substantial
part of Tenant’s interest in the Premises shall be deemed to have agreed directly with Landlord to
be jointly and severally liable with Tenant for the performance of all of Tenant’s covenants under
this Lease; and such assignee shall upon request execute and deliver such instruments as Landlord
reasonably requests in confirmation thereof (and agrees that its failure to do so shall be subject
to the default provisions hereof). Landlord may collect rent and other charges from such
transferee (and upon notice such transferee shall pay directly to Landlord) and apply the net
amount collected to the rent and other charges herein reserved, but no transfer shall be deemed a
waiver of the provisions of this Section, or the acceptance of the transferee as a tenant, or a
release of Tenant or any guarantor from direct and primary liability for the performance of all of
the covenants of this Lease. The consent by Landlord to any transfer shall not relieve Tenant from
the obligation of obtaining the express consent of Landlord to any modification of such transfer or
a further assignment, subletting, license or occupancy; nor shall Landlord’s consent alter in any
manner whatsoever the terms of this Lease, to which any transfer at all times shall be subject and
subordinate. The breach by Tenant of any covenant in this Section shall be a default for which
there is no cure period.

     5.2 Landlord’s Covenants.

          5.2.1 Building Services. Landlord shall furnish the services and utilities described in
this Section 5.2. Tenant may obtain additional services and utilities from time to time if the
same are obtainable by Landlord upon reasonable advance request and Tenant shall pay for the same
at reasonable rates from time to time established by Landlord upon demand as additional rent.
Landlord’s obligation shall be subject to the other provisions of this Lease, reasonable wear and
tear and damage caused by or resulting from the acts or omissions of Tenant
or its transferees (or their agents, employees, invitees and independent contractors), fire,
casualty or eminent domain takings.

               5.2.1.1 Landlord’s Maintenance. Landlord shall reasonably maintain the foundations,
exterior walls, masonry, structural floors, roof and common areas of the Building. Landlord shall
provide and reasonably maintain heating, ventilating and air conditioning systems (other than those
exclusively serving the Premises), the plumbing, electrical and sewer systems and the elevators of
the Building insofar as such elements affect the Premises.

               5.2.1.2 Office Identification. Subject to Section 5.1.3, Landlord shall provide and
install, at Landlord’s expense, Building standard signage on the entry door to the Premises, on the
lobby directory, and at the elevator lobby on the first (1st) and third (3rd)
floors of the Premises to identify Tenant’s official name; all such letters and numerals to be in
the Building standard graphics.

               5.2.1.3 Grounds Maintenance. Landlord shall reasonably maintain the grounds adjacent to
the Building and the walkways, sidewalks, driveways, landscaping, lighting and parking areas
referred to in Section 2.1.

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               5.2.1.4 Cleaning. Landlord shall clean the Premises (consisting of vacuuming of carpeting
and dusting of surfaces, after 5:00 p.m. on business days) and remove Tenant’s trash (after 5:00
p.m. on business days) from the Premises (but Landlord shall not be obligated to remove any trash
resulting from improvements or alterations of Tenant) provided the Premises are kept in good order
by Tenant. The cost of said cleaning by Landlord shall be included in Operating Expenses. Tenant
shall provide Landlord with full access to the Premises to fulfill its responsibilities under this
Section 5.2.1.4.

          5.2.2 Interruptions. Landlord shall not be liable to Tenant in damages or by reduction of
rent or otherwise by reason of inconvenience or annoyance or for loss of business arising from
Landlord or its agents or employees entering the Premises for any of the purposes authorized in
this Lease or for repairing, altering or improving the Building upon reasonable advance notice and
in a manner reasonable in light of the circumstances. In case Landlord is prevented or delayed
from making any repairs or replacements or furnishing any services or performing any other covenant
or duty to be performed on Landlord’s part by reason of any cause reasonably beyond Landlord’s
control, Landlord shall not be liable to Tenant therefor, nor shall the same give rise to a claim
in Tenant’s favor that such failure constitutes actual or constructive, total or partial, eviction
from the Premises. Landlord reserves the right to stop any service or utility system, when
necessary by reason of accident or emergency, or until necessary repairs have been completed;
provided, however, that in each instance of stoppage, Landlord shall give Tenant such notice as is
practicable under the circumstances of the expected duration of such stoppage and will exercise
commercially reasonable diligence to eliminate the cause thereof. Except in case of emergency
repairs Landlord will give Tenant reasonable advance notice of any contemplated stoppage and will
use reasonable efforts to avoid unnecessary inconvenience to Tenant by reason thereof.

ARTICLE VI

INSURANCE; CASUALTY; TAKING

     6.1 Insurance.

          6.1.1 Coverage. Tenant shall purchase and maintain insurance during the entire Term of the Lease for the benefit
of the Tenant and Landlord (as their interests may appear) with terms and coverages reasonably
satisfactory to Landlord, and with insurers having a minimum A.M. Best rating of A-/VIII, and with
such increases in limits as Landlord may from time to time reasonably request, but initially Tenant
shall maintain the following coverages in the following amounts:

               (a) Commercial General Liability Insurance naming Landlord, Landlord’s management, leasing
and development agents, Great Point Investors LLC and Landlord’s mortgagee(s) from time to time as
additional insureds, with coverage for premises/operations, personal injury, products/completed
operations and contractual liability with combined single limits of liability of not less
$1,000,000 for bodily injury and property damage per occurrence; $2,000,000 in the aggregate and
$5,000,000 as umbrella coverage.

               (b) Property Insurance covering property damage and business interruption for not less than
one year. Covered property shall include all tenant improvements in the Premises, office
furniture, trade fixtures, office equipment, merchandise and all other items of Tenant’s property
on the Premises. Such insurance shall, with respect to any tenant improvements, name Landlord and
Landlord’s mortgagee(s) from time to time as additional loss payees as their interests may appear.
Such insurance shall be written on an “all risk” of physical loss or damage basis including but not
limited to the perils of fire, extended coverage, windstorm, vandalism, malicious mischief,
sprinkler leakage, flood and earthquake, for the full replacement cost value of the covered items
and in amounts that meet any co-insurance clause of the policies of insurance with a deductible
amount not to exceed $10,000.

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               (c) Workers’ Compensation Insurance with statutory benefits and Employers’ Liability
Insurance with the following amounts: Each Accident - $500,000;
Disease - Policy Limit - $500,000;
Disease - Each Employee - $500,000 or as otherwise required by law.

     Tenant shall, prior to the commencement of the Lease Term and on each anniversary of the Lease
Commencement Date and/or renewal date thereof, furnish to Landlord certificate(s) evidencing such
coverage, which certificate(s) shall state that such insurance coverage may not be changed or
canceled without at least thirty (30) days’ prior written notice to Landlord and Tenant. The
insurance maintained by Tenant shall be deemed to be primary insurance, and any insurance
maintained by Landlord shall be deemed secondary thereto.

               (d) Landlord’s Coverage. Landlord shall purchase and maintain in effect all-risk insurance
covering loss or damage to the Building in the amount of its replacement value with such
endorsements and deductibles as Landlord shall reasonably determine from time to time. Landlord
shall have the right to obtain flood, earthquake, environmental and such other insurance as
Landlord shall reasonably determine from time to time or shall be required by any lender holding a
security interest in the Property. Landlord shall not obtain insurance for Tenant’s trade
fixtures, equipment or building improvements. Landlord shall purchase and maintain commercial
general liability insurance with coverage for premises operations, personal injury,
products/completed operations and contractual liability with combined single limits of liability of
not less than $1,000,000 for bodily injury and property damage per occurrence; $2,000,000 in the
aggregate and $5,000,000 as umbrella coverage. During the Term, Landlord shall also maintain a
rental income insurance policy, with loss payable to Landlord, in an amount equal to one year’s
Fixed Rent plus estimated real property taxes and operating expenses. Any policy obtained by
Landlord shall not be contributory, shall not provide primary insurance and shall be excess over
any insurance maintained by Tenant.

          6.1.2 Avoid Action Increasing Rates. Tenant shall comply with all applicable laws and
ordinances, all orders and decrees of court and all requirements of other governmental authorities,
and shall not, directly or indirectly, make any use of the Premises which may thereby be prohibited
or be dangerous to person or property or which may jeopardize any insurance coverage or may
increase the cost of insurance or require additional insurance coverage. If Tenant fails to comply
with the provisions of this Section 6.1.2 and (i) any insurance coverage is jeopardized and Tenant
fails to correct such dangerous or prohibited use following ten (10) days’ notice or (ii) insurance
premiums are increased and Tenant fails, following ten (10) days’ notice, to pay the amount of such
increase or cease such use, then in each event such failure shall constitute an Event of Default by
Tenant hereunder, without any further notice or cure right, and Landlord shall have all of its
remedies as set forth in the Lease.

          6.1.3 Waiver of Subrogation. Landlord and Tenant each hereby waive any and every claim for
recovery from the other for any and all loss of or damage to the Building or Premises or to the
contents thereof, which loss or damage is covered by valid and collectible property insurance
policies. Landlord waives any and every claim against Tenant for any and all loss of or damage to
the Building or the Premises or contents thereof, which would have been covered had the insurance
policies required to be maintained by Landlord by this Lease been in force, to the extent that such
loss or damage would have been recoverable under such insurance policies. Tenant waives any and
every claim against Landlord for any and all loss of, or damage to, the Building or Premises or the
contents thereof, which would have been covered had the insurance policies required to be
maintained by Tenant under this Lease been in force, to the extent that such loss or damage would
have been recoverable under such insurance policies. Inasmuch as this mutual waiver will preclude
the assignment of any such claim by subrogation (or otherwise) to an insurance company (or any
other person), Landlord and Tenant each agree to give to each insurance company which has issued,
or in the future may issue, to it policies of property insurance, written notice of the terms of
this 

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mutual waiver, and to have said insurance policies properly endorsed, if necessary, to prevent
the invalidation of said insurance coverage by reason of said waiver.

     6.2 Fire or Casualty. If the Premises or the Building (including machinery or equipment
used in its operation) shall be damaged by fire or other casualty and if such damage does not cause
a termination of this Lease as described in the following sentences, then Landlord shall repair and
restore the damage with reasonable promptness, subject to reasonable delays for insurance
adjustments and delays caused by matters beyond Landlord’s reasonable control, but Landlord shall
not be obligated to expend for repairing or restoring the damage an amount in excess of the
proceeds of insurance recovered with respect to the damage. If in Landlord’s estimate the Premises
cannot be restored within two hundred seventy (270) days from the date of such fire or casualty (or
within one hundred twenty (120) days if the fire occurs during the last Lease Year), then Landlord
shall give notice to Tenant of such estimate within ninety (90) days after such fire or casualty.
Tenant may elect in writing thirty (30) days following the date of such notice from Landlord, time
being of the essence, to terminate this Lease effective as of the date of Tenant’s notice. If any
such damage (i) renders 25% of the Building untenantable or (ii) renders general Building systems
inoperable and such systems cannot be repaired in Landlord’s reasonable estimate within two hundred
seventy (270) days from the date of such damage or (iii) occurs within the last Lease Year and will
take more than sixty (60) days to repair, Landlord shall have the right to terminate this Lease as
of the date of such damage upon written notice given to the Tenant at any time within ninety (90)
days after the date of such damage. Landlord shall have no liability to Tenant, and Tenant shall
not be entitled to terminate this Lease, by virtue of any delays in completion of such repairs and
restoration unless said repairs and restoration are not completed within three hundred sixty-five
(365) days from the date of the underlying damage. Annual Fixed Rent and additional rent, however,
shall abate on those portions of the Premises as are, from time to time, untenantable and, in fact,
unoccupied by Tenant as a result of such damage.

          Notwithstanding anything to the contrary herein set forth, Landlord shall have no duty
pursuant to this Section 6.2 to repair or restore any portion of any alterations, additions,
installation or improvements in the Premises or the decoration thereto except to the extent that
the proceeds of the insurance carried by Tenant are timely received by Landlord. If Tenant desires
any other additional repairs or restoration, and if Landlord consents thereto, it shall be done at
Tenant’s sole cost and expense subject to all of the applicable provisions of the Lease. Tenant
acknowledges that Landlord shall be entitled to the full proceeds of any insurance coverage whether
carried by Landlord or Tenant, for damage to any alterations, addition, installation, improvements
or decorations which would become the Landlord’s property upon the termination of the Lease.

     6.3 Waiver of Claim. Landlord and its partners, members, affiliates, officers, agents,
servants and employees shall not be liable for any damage either to person, property or business
resulting from the loss of the use thereof sustained by Tenant or by other persons due to the
Building or any part thereof or any appurtenances thereto becoming out of repair, or due to the
happening of any accident or event in or about the Building, including the Premises, or due to any
act or neglect of any tenant or occupant of the Building or of any other person, unless and then
only to the extent caused by the negligence or willful misconduct of Landlord or its agents,
employees or contractors. This provision shall apply particularly, but not exclusively, to damage
caused by gas, electricity, snow, ice, frost, steam, sewage, sewer gas or odors, fire, water or by
the bursting or leaking of pipes, faucets, sprinklers, plumbing fixtures and windows, and except as
provided above, shall apply without distinction as to the person whose act or neglect was
responsible for the damage and shall apply whether the damage was due to any of the causes
specifically enumerated above or to some other cause of an entirely different kind. Tenant further
agrees that all personal property upon the Premises, or upon loading docks, recovering and holding
areas, or freight elevators of the Building, shall be at the risk of Tenant only, and that Landlord
shall not be liable for any loss or damage thereto or theft thereof. The provisions of this
Article VI shall survive the expiration or earlier termination of this Lease.

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     6.4 Nonwaiver. No waiver of any provisions of this Lease shall be implied by any failure
of Landlord to enforce any remedy on account of the violation of such provisions, even if such
violation is continued or repeated subsequently, and no express waiver shall affect any provision
other than the one specified in such waiver and that one only for the time and in the manner
specifically stated. No receipt for monies by Landlord from Tenant after the termination of this
Lease shall in any way alter the length of the Lease Term or of Tenant’s right to possession
hereunder or after the finding of any notice shall reinstate, continue or extend the Lease Term or
affect any notice given Tenant prior to the receipt of such monies, it being agreed that after the
service of notice or the commencement of a suit or after final judgment for possession of the
Premises, Landlord may receive and collect any Annual Fixed Rent and Additional Rent due, and the
payment of said Annual Fixed Rent and Additional Rent shall not waive or affect said notice, suit
or judgment.

     6.5 Condemnation. If the Land or the Building (or any portion of the Building, the loss of
which would require reconfiguration or restoration of the Building which Landlord reasonably
estimates will cost in excess of 25% of the current replacement cost of the Building) shall be
taken or condemned by any competent authority for any public or quasi-public use or purpose,
Landlord shall have the right, exercisable at its sole direction, to cancel the Lease upon not less
than sixty (60) days’ notice prior to the date of cancellation designated in the notice. No money
or other consideration shall be payable by Landlord to Tenant for the right of cancellation and
Tenant shall have no right to share in the condemnation award or in any judgment for damages caused
by such taking or condemnation.

     If any such taking (i) renders 25% of the Building untenantable, (ii) renders any material
portion of the Premises untenantable, or (iii) renders general Building systems inoperable and such
systems cannot be
repaired in Landlord’s reasonable estimate within three hundred sixty-five (365) days from the date
of such taking or (iii) occurs within the last two (2) Lease Years, both Tenant and Landlord shall
have the right to terminate this Lease as of the date of such taking upon written notice given to
the other party at any time within sixty (60) days after the date such taking becomes effective.
Landlord shall have no liability to Tenant, and Tenant shall not be entitled to terminate this
Lease, by virtue of any delays in completion of repairs or restoration following a taking. Annual
Fixed Rent and additional rent, however, shall abate on those portions of the Premises as are, from
time to time, untenantable and, in fact, unoccupied by Tenant as a result of such taking.

ARTICLE VII

DEFAULT

     7.1 Events of Default. (a) If Tenant fails to pay any installment of Annual Fixed Rent or
additional rent or other sum or charge hereunder within five (5) days of the date due hereunder, or
(b) if more than two notices of default are given in any rolling twelve month period, or (c) if any
assignment shall be made by Tenant (or any assignee, sublessee or guarantor of Tenant) for the
benefit of creditors, or (d) if Tenant’s leasehold interest shall be taken on execution or by other
process of law, or (e) if a petition is filed by Tenant (or any assignee, sublessee or guarantor of
Tenant) for adjudication as a bankrupt, or for reorganization or an arrangement under any provision
of any bankruptcy or reorganization act then in force and effect, or (f) if an involuntary petition
under the provisions of any bankruptcy act is filed against Tenant (or any assignee, sublessee or
guarantor of Tenant) and such involuntary petition is not dismissed within thirty (30) days
thereafter, or (g) if Tenant (or any assignee, sublessee or guarantor of Tenant) shall be declared
bankrupt or insolvent according to law, or (h) if a receiver, trustee or assignee shall be
petitioned for and not contested by Tenant for the whole or any part of Tenant’s (or such
assignee’s, sublessee’s or guarantor’s) property, or if a receiver, trustee or assignee shall be
appointed over Tenant’s (or such other person’s) objection and not be removed within thirty (30)
days thereafter, or (i) if any representation or warranty made by Tenant shall be untrue in any
material respect when made, or (j) if Tenant fails to perform

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any other covenant, agreement or
condition hereunder and such default continues for thirty (30) days after written notice (provided,
however, that such thirty (30) day period shall be reasonably extended in the case of such
non-monetary default if the matter complained of can be cured, but the cure cannot be completed
within such period and Tenant begins promptly to cure within such period and thereafter diligently
completes the cure within ninety (90) days of the initial default; if such matters cannot be cured,
then there shall be no cure period), then, and in any such case, Landlord and its agents and
employees lawfully may, in addition to and not in derogation of any remedies for any preceding
breach, immediately or at any time thereafter, without demand or notice and with or without process
of law, enter into and upon the Premises or any part thereof in the name of the whole, or mail or
deliver a notice of termination of the Term addressed to Tenant at the Premises or at any other
address herein provided, and thereby terminate this Lease and repossess the same as of Landlord’s
former estate. Upon such entry or mailing or delivery, as the case may be, the Term shall
terminate, all executory rights of Tenant and all obligations of Landlord under this Lease shall
immediately cease, and Landlord may expel Tenant and all persons claiming by, through or under
Tenant and remove its and their effects (forcibly if necessary) without being deemed guilty of any
manner of trespass and without prejudice to any remedies which might otherwise be used for arrears
of rent or prior breach of covenants; and Tenant hereby waives all statutory and equitable rights
to its leasehold (including without limitation rights in the nature of further cure or of
redemption, if any). Landlord may, without notice, store Tenant’s effects (and those of any person
claiming by, through or under Tenant) at the expense and risk of Tenant and, if Landlord so elects,
may sell such effects at public auction or auctions or at private sale or sales after seven (7)
days notice to Tenant (which notice Tenant agrees is reasonable) and apply the net proceeds to the
payment of all sums due to Landlord from Tenant, if any, and pay over the balance, if any, to
Tenant. If any payment of Annual Fixed Rent, additional rent, or other payment due from Tenant to
Landlord is not paid when due, then Landlord may, at its option, in addition to all other remedies hereunder, impose a late charge on Tenant
equal to 3% of the amount in question, which late charge will be due upon demand as additional
rent.

     7.2 Remedies for Default.

          7.2.1 Reletting Expenses Damages. If this Lease is terminated for default, then Tenant
covenants, as an additional cumulative obligation after such termination, to pay all of Landlord’s
reasonable costs and expenses related thereto or in collecting amounts due hereunder, including
attorneys’ fees, and all of Landlord’s reasonable expenses in connection with reletting, including
without limitation, tenant inducements, brokerage commissions, fees for legal services, expenses of
preparing the Premises for reletting and the like (“Reletting Expenses”). It is agreed by Tenant
that Landlord may (i) relet the Premises or any part or parts thereof for a term or terms which may
at Landlord’s option be equal to or less than or exceed the period which would otherwise have
constituted the balance of the Term, and may grant such tenant inducements as Landlord in its sole
judgment considers advisable, and (ii) make such alterations, repairs and decorations in the
Premises as Landlord in its sole discretion considers advisable, and no action of Landlord in
accordance with the foregoing nor any failure to relet or to collect rent under any reletting shall
operate or be construed to release or reduce Tenant’s liability. Any obligation to relet the
Premises imposed upon Landlord by law shall be subject to Landlord’s reasonable objectives of
developing its property in a harmonious manner with appropriate mixes of tenants, uses, floor
areas, terms, etc. Landlord’s Reletting Expenses together with all sums otherwise provided for in
this Lease, whether incurred prior to or after such termination, shall be due and payable
immediately from time to time upon notice from Landlord. Landlord shall use commercially
reasonable efforts to mitigate its damages.

          7.2.2 Termination Damages. If this Lease is terminated for default, then unless and until
Landlord elects lump sum liquidated damages described in Section 7.2.3 below Tenant covenants, as
an additional cumulative obligation after any such termination, to pay punctually to Landlord all
the sums and perform all the obligations which Tenant covenants in this Lease to pay and to perform
in the same manner and to the same extent and at the same time as if this Lease had not been
terminated. In calculating the

20

 

amounts to be paid by Tenant pursuant to the preceding sentence
Tenant shall be credited with the net proceeds of any rent then actually received by Landlord from
a reletting of the Premises after deducting all sums provided for in this Lease to be paid by
Tenant and not then paid.

          7.2.3 Lump Sum Liquidated Damages. If this Lease is terminated for default, then Tenant
covenants, as an additional cumulative obligation after termination, to pay forthwith to Landlord
at Landlord’s election made by written notice to Tenant at any time after termination, as
liquidated damages a single lump sum payment equal to the sum of (i) all sums provided for in this
Lease to be paid by Tenant and not then paid at the time of such election, plus either (ii) the
excess of all of the rent reserved for the residue of the Term (with additional rent on account of
Landlord’s Taxes and Operating Expenses deemed to increase 10% in each year on a compounding basis)
over all of the rent actually received (or which rent Tenant shows by clear and convincing evidence
will be received), on account of the Premises during such period, which rent from reletting shall
be reduced by reasonable projections of vacancies and by Landlord’s Reletting Expenses described
above to the extent not theretofore paid to Landlord, or (iii) an amount equal to the sum of all of
the rent and other sums due hereunder and payable with respect to the twelve (12)-month period next
following the date of termination.

     7.3 Remedies Cumulative. Any and all rights and remedies Landlord may have under this
Lease, and at law and equity, shall be cumulative and shall not be deemed inconsistent with each
other, and any two or more of all such rights and remedies may be exercised at the same time
insofar as permitted by law. Nothing contained in this Lease shall, however, limit or prejudice
the right of Landlord to prove and obtain in proceedings for bankruptcy or
insolvency by reason of the termination or rejection of this Lease, an amount equal to the maximum
allowed by any statute or rule of law in effect at the time when and governing the proceedings in
which the damages are to be proved, whether such amount be greater, equal to, or less than the
amount of the loss or damages referred to in the preceding Section.

     7.4 Effect of Waivers of Default. Any consent or permission by Landlord to any act or
omission which otherwise would be a breach of any covenant or condition, or any waiver by Landlord
of the breach of any covenant or condition, shall not in any way be held or construed to operate so
as to impair the continuing obligation of such covenant or condition, or otherwise operate to
permit other similar acts or omissions. No breach shall be deemed to have been waived unless and
until such waiver be in writing and signed by Landlord. The failure of Landlord to seek redress
for violation of or insist upon the strict performance of any covenant or condition of this Lease,
or the receipt by Landlord of rent with knowledge of any violation, shall not be deemed a consent
to or waiver of such violation, nor shall it prevent a subsequent act, which would otherwise
constitute a violation, from in fact being a violation.

     7.5 No Accord and Satisfaction; No Surrender. No acceptance by Landlord of a lesser sum
than the Annual Fixed Rent, additional rent or any other sum or charge then due shall be deemed to
be other than on account of the earliest installment of such rent, sum or charge due; nor shall any
endorsement or statement on any check or in any letter accompanying any check or payment be deemed
an accord and satisfaction, and Landlord may accept such check or payment without prejudice to
Landlord’s right to recover the balance of such installment or pursue any other right or remedy
available to it. The delivery of keys (or any similar act) to Landlord or any agent or employee of
Landlord shall not operate as a termination of this Lease or an acceptance of a surrender of the
Premises, which may occur only upon Landlord’s written acknowledgement of same.

     7.6 Waiver of Jury. Landlord and Tenant hereby waive trial by jury in any summary
proceeding in any emergency or other statutory remedy, or in any action based, in whole or in part,
on non-payment of rent or other default under this Lease; and Tenant further agrees that it shall
not interpose any counterclaim or set-off in any such proceeding.

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     7.7 Landlord’s Curing and Enforcement. If Tenant shall neglect or fail to perform or
observe any covenant or condition of this Lease and shall not cure such default within the
applicable cure period, Landlord may, at its option, without waiving any claim for breach, at any
time thereafter cure such default for the account of Tenant, and any amount paid or any liability
incurred by Landlord in so doing shall be deemed paid or incurred for the account of Tenant, and
Tenant shall reimburse Landlord therefor, together with an administrative charge of ten per cent
(10%) of the amount thereof, on demand as additional rent; and Tenant shall further indemnify and
save Landlord harmless in the manner elsewhere provided in this Lease in connection with all of
Landlord’s actions in effecting any such cure. Notwithstanding any other provision herein
concerning cure periods, Landlord may cure any default for the account of Tenant after such notice
to Tenant, if any, as is reasonable under the circumstances (including telephone notice) if the
curing of such default prior to the expiration of the applicable cure period is reasonably
necessary to prevent likely damage to the Premises or other improvements or possible injury to
persons, or to protect Landlord’s interest in its property or the Premises. Tenant shall pay to
Landlord on demand as additional rent all of the costs and expenses of Landlord, including such
administrative charge and reasonable attorneys’ fees, incurred in enforcing any covenant or
condition of this Lease. Without limiting any of its other rights or remedies, any sum due
hereunder shall, in addition, bear interest from the date due at the greater of (i) one and
one-half percent (11/2%) for each month (or ratable portion thereof) the same remains unpaid, or
(ii) three percent (3%) per annum (or ratable portion thereof) above the so-called base or prime
lending rate charged by Bank of America from time to time on 90
day loans to its most credit-worthy borrowers; provided that interest shall never exceed the
maximum rate permitted under applicable law.

     In the event Tenant breaches any covenant or fails to observe any condition set forth in
Article VII with respect to the insurance required to be maintained by Tenant, then without
limiting any other right or remedy, and notwithstanding any other provision herein concerning
notice and cure of defaults, Landlord may immediately and without notice to Tenant obtain such
insurance, and Tenant shall pay the cost thereof and Landlord’s expenses related thereto upon
demand as additional rent.

     7.8 Landlord’s Default. In no event shall Landlord be in default unless notice thereof has
been given to Landlord (and all mortgagees of which Tenant has notice) and Landlord (or any such
mortgagee at its sole discretion) fails to perform within thirty (30) days (provided, however, that
such thirty (30) day period shall be reasonably extended if such performance begins within such
period and thereafter is diligently pursued, or if such mortgagee notifies Tenant within such
period that it intends to cure on behalf of Landlord and thereafter begins and diligently pursues
curing with reasonable promptness).

     7.9 Prevailing Parties. In the event of any litigation between Landlord and Tenant, the
unsuccessful party as determined by a court of competent jurisdiction shall reimburse the
successful party for all reasonable legal fees and expenses incurred by the successful party in
prosecuting or defending any such action.

     7.10 Security Deposit. Upon execution of this Lease, Tenant shall deposit the Security
Deposit with Landlord as security for the performance of Tenant’s obligations under this Lease.
Upon the occurrence of a Default, Landlord may use all or any part of the Security Deposit for the
payment of any Rent or for the payment of any amount which Landlord may pay or become obligated to
pay by reason of such Default, or to compensate Landlord for any loss or damage which Landlord may
suffer by reason of such Default. If any portion of the Security Deposit is used, Tenant shall
within five (5) business days after written demand therefor restore the Security Deposit to its
original amount. Landlord shall not be required to keep the Security Deposit separate from its
general funds, and Tenant shall not be entitled to interest on the Security Deposit. In no event
shall the Security Deposit be considered an advanced payment of Rent, and in no event shall Tenant
be entitled to use the Security Deposit for the payment of Rent. If no default by Tenant exists
hereunder, the Security Deposit or any balance thereof shall be returned to Tenant within sixty
(60) days after the expiration of the Term and vacation of the Premises by Tenant. Landlord shall
have the

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right to transfer the Security Deposit to any purchaser of the Building. Upon such
transfer, Tenant shall look solely to such purchaser for return of the Security Deposit; and
Landlord shall be relieved of any liability with respect to the Security Deposit.

     If the Security Deposit is in the form of an unconditional, irrevocable letter of credit, such
letter of credit shall be issued by a financial institution acceptable to Landlord and in the form
of Appendix D. The letter of credit shall be renewed by Tenant at least thirty (30) days
prior to expiration and shall remain in effect until sixty (60) days after the scheduled end of the
Term.

          On each anniversary of the Lease Commencement Date, and provided that at such time no Event of
Default exists, and no state of facts, which, with notice or the passage of time, or both, would
constitute and Event of Default exists, the amount of the Security Deposit may be reduced by
$100,000, provided, however, it shall never be reduced below $100,000. Notwithstanding the
foregoing, if Tenant reports four (4) continuous quarters of positive Income Before Taxes, Tenant
shall be entitled to reduce the amount of the Security Deposit to fifty percent (50%) of its then
current amount; provided, however, if Tenant elects such reduction of the Security Deposit, the
future annual reduction shall be only $50,000 on each subsequent
anniversary of the Lease Commencement Date and the Security Deposit shall never be reduced below
$100,000.

ARTICLE VIII

MISCELLANEOUS PROVISIONS

     8.1 Notice from One Party to the Other. All notices required or permitted hereunder shall
be in writing and shall be deemed duly served if mailed by certified mail, postage prepaid, by
recognized overnight courier, or by facsimile transmission which provides confirmation of receipt,
addressed, if to Tenant, at the Original Address of Tenant or such other address as Tenant shall
have last designated by notice in writing to Landlord and, if to Landlord, at the Original Address
of Landlord or such other address as Landlord shall have last designated by notice in writing to
Tenant. If requested, Tenant shall send copies of all such notices in like manner to Landlord’s
mortgagees and any other persons having an interest in the Premises and designated by Landlord.
Any notice so addressed shall be deemed duly served on the second business day following the day of
mailing if so mailed by registered or certified mail, return receipt requested, whether or not
accepted, on the following business day if sent by recognized overnight courier, whether or not
accepted, and on the day of receipt if received on or before 5 p.m. in the time zone of the
recipient, if sent by facsimile.

     8.2 Quiet Enjoyment. Landlord agrees that upon Tenant’s paying all rent and performing and
observing all covenants, conditions and other provisions on its part to be performed and observed,
Tenant may peaceably and quietly have, hold and enjoy the Premises during the Term without
disturbance by Landlord or anyone claiming by, through or under it, subject always to the terms of
this Lease, provisions of law, and rights or interests of record to which this Lease may be or
become subject and subordinate.

     8.3 Limitation of Landlord’s Liability. Landlord shall be liable only for breaches of
Landlord’s obligations occurring while Landlord is owner of the fee of which the Premises are a
part (provided, however, that if Landlord shall ever sell and lease-back such fee, or the ground
thereof or the improvements thereon, then “fee” shall, in such event, be deemed to mean Landlord’s
leasehold interest). Tenant (and all persons claiming by, through or under Tenant) agrees to look
solely to Landlord’s interest from time to time in the fee of which the Premises are a part for
satisfaction of any claim or recovery of any judgment from Landlord; it being agreed that neither
Landlord nor any trustee, beneficiary, partner, member, manager, shareholder, agent or employee of
Landlord shall ever be personally or individually liable for any claim or judgment, or otherwise,
to Tenant (or such persons). In no event shall Landlord ever be liable to Tenant (or 

23

 

such persons)
for indirect or consequential damages, nor shall Landlord ever be answerable or liable in any
equitable judicial proceeding or order beyond the extent of its interest in the fee of which the
Premises are a part.

     8.4 Applicable Law and Construction. This Lease may be executed in counterpart copies and
shall be governed by and construed as a sealed instrument in accordance with the laws of The
Commonwealth of Massachusetts. If any provision shall to any extent be invalid, the remainder of
this Lease shall not be affected. Other than contemporaneous instruments executed and delivered of
even date, if any, this Lease contains all of the agreements between Landlord and Tenant with
respect to the Premises and supersedes all prior dealings between them with respect thereto. There
are no oral agreements between Landlord and Tenant affecting this Lease. This Lease may be amended
only by an instrument in writing executed by Landlord and Tenant. The enumeration of specific
examples of a general provision shall not be construed as a limitation of the general provision.
Unless a party’s approval or consent is required by its terms not to be unreasonably withheld, such
approval or consent may be withheld in the party’s sole discretion. If Tenant is granted any
extension
or other option, to be effective the exercise (and notice thereof) shall be unconditional, time
always being of the essence to any options; and if Tenant purports to condition the exercise of any
option or vary its terms in any manner, then the option granted will automatically and immediately
become null and void and the purported exercise will be ineffective. This Lease and all consents,
notices and other related instruments may be reproduced by any party by photographic, microfilm,
microfiche or other reproduction process and the originals thereof may be destroyed; and each party
agrees that reproductions will be admissible in evidence to the same extent as the original itself
in and judicial or administrative proceeding (whether or not the original is in existence and
whether or not reproduction was made in the regular course of business), and further reproduction
will likewise be admissible. The titles of the several Articles and Sections are for convenience
only, and shall not be considered a part hereof. The submission of a form of this Lease or any
summary of its terms shall not constitute an offer by Landlord to Tenant; but a leasehold shall
only be created and the parties bound when this Lease is executed and delivered by both Landlord
and Tenant.

     8.5 Successors and Assigns. Except as herein provided otherwise, the agreements and
conditions in this Lease contained on the part of Landlord to be performed and observed shall be
binding upon Landlord and its legal representatives, successors and assigns, and shall inure to the
benefit of Tenant and its legal representatives, successors and assigns; and the agreements and
conditions on the part of Tenant to be performed and observed shall be binding upon Tenant (and any
guarantor of Tenant) and Tenant’s legal representatives, successors and assigns and shall inure to
the benefit of Landlord and its legal representatives, successors and assigns.

     8.6 Relationship of the Parties. Nothing herein shall be construed as creating the
relationship between Landlord and Tenant of principal and agent, or of partners or joint venturers;
it being understood and agreed that neither the manner of fixing rent, nor any other provision of
this Lease, nor any act of the parties, shall ever be deemed to create any relationship between
them other than the relationship of landlord and tenant.

     8.7 Estoppel Certificate. Within ten (10) days of either party’s request, Landlord and
Tenant agree, in favor of the other, to execute, acknowledge and deliver a statement in writing
certifying that this Lease is unmodified and in full force and effect (or, if there have been any
modifications that the same is in full force and effect as modified and stating the modifications),
and the amount and dates to which the Annual Fixed Rent (and additional rent and all other charges)
have been paid and any other information reasonably requested by the requesting party or Landlord’s
mortgagee. Both parties intend and agree that any such statement may be relied upon by any
prospective purchaser, mortgagee, or other person to whom the same is delivered. Tenant
acknowledges that prompt execution and delivery of such statements, and all

24

 

instruments referred to
in Article X, constitute essential requirements of any financings or sales by Landlord.

     8.8 Notice of Lease. Tenant may record, at its sole cost and expense, a notice of this
Lease in form reasonably acceptable to Landlord.

     8.9 Construction on Adjacent Premises. Landlord shall have the right, in connection with
any development within or adjacent to the Building, to grant easements through the Building for
access and egress to and from such development and for the installation, maintenance, repair,
replacement or relocation of utilities serving such development and/or the Premises and for the
installation, removal, maintenance, repair and replacement of windows and walkways related to such
development. Such right shall include the right to grant such easements through the Premises,
provided that installations, replacements or relocations of utilities in the Premises shall be
placed above ceiling surfaces, below floor surfaces or within perimeter walls. This Lease shall be
subject and subordinate to any easements so granted. Landlord and its agents, employees, licensees
and contractors
shall also have the right during any construction period for any such development to enter the
Premises to undertake work pursuant to any easement granted pursuant to the above paragraph; to
shore up the foundations and/or walls of the Premises and Building; to erect scaffolding and
protective barricades around the Premises or in other locations within or adjacent to the Building;
and to do any other act necessary for the safety of the Premises or Building or the expeditious
completion of such construction. Landlord shall not be liable to Tenant for any compensation or
reduction of rent by reason of inconvenience or annoyance or for loss of business resulting from
any act by Landlord pursuant to this Section. Landlord shall not unreasonably interfere with the
conduct of Tenant’s business and shall minimize the extent and duration of any inconvenience,
annoyance or disturbance to Tenant resulting from any work pursuant to this Section in or about the
Premises or Building, consistent with accepted construction practice. It is not intended that the
exercise of such rights will result in any substantial permanent reduction in the floor area of the
Premises, but if any act by Landlord pursuant to this Section results in a permanent reduction in
the floor area of the Premises, Tenant shall be entitled to a proportional abatement of Annual
Fixed Rent and additional rent. In no event shall any work performed by Landlord diminish or make
less convenient Tenant’s parking rights hereunder.

     8.10 Tenant As Business Entity. If Tenant is a business entity, then the person or persons
executing this Lease on behalf of Tenant jointly and severally warrant and represent that (a)
Tenant is duly organized, validly existing and in good standing under the laws of the jurisdiction
in which such entity was organized; (b) Tenant has the authority to own its property and to carry
on its business as contemplated under this Lease; (c) Tenant is in compliance with all laws and
orders of public authorities applicable to Tenant; (d) Tenant has duly executed and delivered this
Lease; (e) the execution, delivery and performance by Tenant of this Lease (i) are within the
powers of Tenant, (ii) have been duly authorized by all requisite action, (iii) will not violate
any provision of law or any order of any court or agency of government, or any agreement or other
instrument to which Tenant is a party or by which it or any of its property is bound, and (iv) will
not result in the imposition of any lien or charge on any of Tenant’s property, except by the
provisions of this Lease; and (f) the Lease is a valid and binding obligation of Tenant enforceable
in accordance with its terms. Simultaneously with the execution of the Lease, Tenant shall deliver
to Landlord a certified copy of a resolution of Tenant’s directors, manager, or general partner
authorizing the execution of this Lease or other evidence of such authority reasonably acceptable
to Landlord.

     8.11 Parking. During the Term, Tenant shall be permitted to use at no cost to Tenant the
number of Parking Spaces set forth in Section 1.1 in the parking areas designated by Landlord for
use by Building tenants, subject to such reasonable terms, conditions and regulations as are from
time to time applicable to authorized users of such parking areas. Such parking spaces shall be
available for Tenant’s use on an unassigned, non-reserved basis.

25

 

     8.12 Renewal Option. Provided no Event of Default exists, or any state of facts, which,
with notice or the passage of time, or both, would constitute an Event of Default under this Lease,
either at the time such option is exercised or at the time the Renewal Period commences, Landlord
grants Tenant the option (the “Renewal Option”) to extend this Lease with respect to all of the
Premises for one (1) additional consecutive period of five (5) years (the “Renewal Period”). The
Renewal Option shall be exercised by Tenant delivering written notice to Landlord at least twelve
(12) months prior to the Expiration Date of the initial Term.

     The Rent for the Renewal Period (the “Renewal Rental Rate”) shall be the fair market rental
rate, which shall be the rental rate then being charged by landlords (including Landlord) in the
market area in which the Premises is located on new leases or on renewed leases to tenants of a
similar credit quality to Tenant for space of similar quality and size as the Premises, taking into
account all relevant factors, including without limitation, location, age, extent and quality of
the Premises, length of term, amenities of
the Premises, location, definition of net rentable area, and, if any, abatement provisions
reflecting free rent, improvement allowances, brokerage commissions and any other concessions which
would be granted by Landlord or a comparable landlord.

     Within thirty (30) days after Tenant’s exercise of the Renewal Option, Landlord shall notify
Tenant in writing of the proposed Renewal Rental Rate as determined by the above formula. Tenant
shall have ten (10) days from the receipt of Landlord’s notice (the “Outside Agreement Date”) to
either accept or dispute Landlord’s determination of the Renewal Rental Rate or cancel the exercise
of the Renewal Option. In the event that Tenant disputes Landlord’s determination, Tenant shall so
notify Landlord and each party shall make a separate determination of the Renewal Rental Rate which
shall be submitted to each other and to arbitration in accordance with the following procedure:

          (i) Landlord and Tenant shall each circulate its determination of the Renewal Rental Rate and,
within ten (10) business days of the Outside Agreement Date, appoint one arbitrator who shall, by
profession, be a current real estate broker or appraiser of comparable properties in the 495 West
submarket and who has been active in such field over the last five (5) years (a “Qualified
Arbitrator”). The determination of the arbitrators shall be limited solely to the issue of whether
Landlord’s or Tenant’s submitted Renewal Rental Rate is the closest to the actual Renewal Rental
Rate as determined by the arbitrators.

          (ii) The two Qualified Arbitrators so appointed shall within five (5) business days of the
date of the appointment of the last appointed Qualified Arbitrator agree upon and appoint a third
Qualified Arbitrator.

          (iii) The three Qualified Arbitrators shall within fifteen (15) days of the appointment of the
third Qualified Arbitrator reach a decision as to whether the parties shall use Landlord’s or
Tenant’s submitted Renewal Rental Rate, and shall notify Landlord and Tenant thereof. The decision
of a majority of the three Qualified Arbitrators shall be binding upon Landlord and Tenant.

          (iv) If either Landlord or Tenant fails to appoint a Qualified Arbitrator within ten (10)
business days after the Outside Agreement Date, the Qualified Arbitrator appointed by one of them
shall reach a decision, notify Landlord and Tenant thereof, and such Qualified Arbitrator’s
decision shall be binding upon Landlord and Tenant.

          (v) If the two Qualified Arbitrators fail to agree upon and appoint a third Qualified
Arbitrator, or both parties fail to appoint a Qualified Arbitrator, then the appointment of the
third Qualified Arbitrator or any Qualified Arbitrator shall be dismissed and the matter to be
decided shall be forthwith

26

 

submitted to arbitration under the provisions of the American
Arbitration Association, but subject to the instructions set forth in this Section 8.12.

     Landlord and Tenant shall execute an amendment to this Lease within fifteen (15) days after
the determination of the Renewal Rental Rate, which amendment shall set forth the extended Term and
the Renewal Rental Rate. Except for the change in the Rent, the Renewal Period shall be subject to
all of the terms and conditions of this Lease.

     Neither any option granted to Tenant in this Lease or in any collateral instrument to renew or
extend the Term, nor the exercise of any such option by Tenant, shall prevent Landlord from
exercising any option or right granted or reserved to Landlord in this Lease or in any collateral
instrument or that Landlord may otherwise have, to terminate this Lease or any renewal or extension
of the Term either during the original Term or during the renewed or extended term. Any renewal or
extension right granted to Tenant shall be personal to Tenant and may not be exercised by any
assignee, subtenant or legal representative of Tenant to
which Landlord’s consent was required with respect to the assignment, subletting or transfer
thereto. Any termination of this Lease shall serve to terminate any such renewal or extension of
the Term, whether or not Tenant shall have exercised any option to renew or extend the Term. No
option granted to Tenant to renew or extend the Term shall be deemed to give Tenant any further
option to renew or extend.

     8.13 Expansion Option. After the Lease Commencement Date, provided Tenant is not in
default under this Lease beyond any applicable grace or cure period and that no event or condition
exists which with notice or the expiration of any grace period would constitute an Event of Default
under this Lease at the time the option may be exercised, and subject to those rights of other
tenants of the Property existing as of the date hereof and set forth on Schedule 8.13
attached hereto, Landlord shall provide Tenant with a written notice (an “Availability Notice”) of
any space in the Building becoming available for re-lease during the Term of this Lease (the
“Expansion Space”).

     (i) Such Availability Notice shall include (1) the date on which Tenant may occupy such
Expansion Space, (2) the Annual Fixed Rent for the Expansion Space (the “Expansion Space Rent”),
which Expansion Space Rent shall be at a per square foot rate which is equal to the market rate in
effect for comparable space in the area of the Property at that time, (3) the term for the
Expansion Space and (4) any other important terms upon which the Landlord is offering the Expansion
Space.

     (ii) In order to exercise its rights under this section, Tenant must give Landlord written
notice of its election to accept the offer set forth in the Availability Notice (the “Acceptance
Notice”) within ten (10) days (the “Acceptance Period”) after receiving the Availability Notice.
Notwithstanding the foregoing, if Tenant does not agree that the proposed Expansion Space Rent is
the market rental rate in effect for comparable space in the area of the Property at that time,
Tenant shall notify Landlord in writing prior to the expiration of the Acceptance Period and in
such notice (1) shall appoint a Qualified Arbitrator and (2) shall include the Qualified
Arbitrator’s determination of the Expansion Space Rent. Within three (3) business days of receipt
of the notice from Tenant, Landlord shall appoint a second Qualified Arbitrator. Within three (3)
business days of such appointment, the two Qualified Arbitrators will appoint a third Qualified
Arbitrator. Within three (3) business days of the appointment of the third Qualified Arbitrator,
the three Qualified Arbitrators shall reach a decision as to whether the parties shall use
Landlord’s or Tenant’s submitted Expansion Space Rent, and shall notify Landlord and Tenant of such
determination. The decision of a majority of the three Qualified Arbitrators shall be binding upon
Landlord and Tenant.

     (iii) If Tenant timely accepts the Landlord’s offer in accordance with subsection (ii), then
Tenant’s leasing of the Expansion Space shall be under all terms of this Lease other than as
modified by the offer, except that (a) the Annual Fixed Rent shall be as determined in accordance
with the provisions above, (b) the fraction used for Tenant’s Percentage Share shall be increased
proportionately to reflect the addition of

27

 

the Expansion Space to the Premises, (c) if the term for
the Expansion Space would commence at a time when at least five (5) years remain on the Lease Term
for the initial Premises, the term for the Expansion Space shall be co-terminus with the initial
Premises, and (d) Tenant shall be permitted to use an additional four (4) parking spaces for each
1,000 square feet of Expansion Space. Furthermore, within fifteen (15) days after the delivery of
the Acceptance Notice, the parties shall execute a written amendment to this Lease documenting the
foregoing.

     (iv) If Tenant fails to timely deliver the Acceptance Notice or refuses in writing the offer
contained in the Availability Notice (other than the determination of the Expansion Space Rent as
provided for in subsection (ii)), Landlord shall have the right to lease the Expansion Space to any
third party tenant. Tenant’s rights under this Section 8.13 with respect to any other portion of
the Expansion Space shall remain in full force and effect.

     8.14 Exterior Signage. Subject to the City of Marlborough sign and zoning ordinance and
other applicable laws, if any, Landlord grants Tenant the right to exterior building signage in the
event that Tenant (i) occupies more than fifty percent (50%) of the Building, (ii) is the largest
space user in the Building, or (iii) more than one (1) exterior Building sign is allowed by
applicable law. Tenant’s exterior building signage size shall be the maximum sign permitted by
applicable law with two (2) tenants in the Building. If at any time during the Lease Term, (a)
Tenant does not occupy more than fifty percent (50%) of the Building and (b) is not the largest
space user in the Building and applicable laws do not permit more than one exterior building sign,
then Landlord may revoke Tenant’s right to exterior building signage. Landlord may also revoke
Tenant’s right to exterior building signage if Tenant subleases more than fifty percent (50%) of
the Premises.

ARTICLE IX

BROKERS

     9.1 Brokers. Tenant and Landlord each represent and warrant to the other that it has not
dealt with any broker other than the Brokers identified in Section 1.1, to whom Landlord shall pay
a commission pursuant to a separate written agreement, in connection with this Lease or the
Premises and agrees to indemnify and save the other party harmless from all loss, claim, damage,
cost or expense (including reasonable attorneys’ fees) arising from any breach of this
representation and warranty by such party. The warranty, representation and indemnity in this
Section 9.1 shall survive the expiration or any earlier termination of this Lease.

ARTICLE X

LANDLORD’S FINANCING

     10.1 Subordination and Superiority of Lease. Tenant agrees that this Lease and the rights
of Tenant hereunder will be subject and subordinate to the present or future lien of any mortgage
(and at Landlord’s election, to the lien of any subordinate mortgage or mortgages) and to the
rights of any lessor under any ground or improvements lease of the Premises (collectively referred
to in this Lease as a “mortgage” and the holder or lessor thereof from time to time as a
“mortgagee”), and to all advances and interest thereunder and all modifications, renewals,
extensions and consolidations thereof, and that Tenant shall attorn to any such mortgagee
succeeding to Landlord’s interest in the Property by foreclosure, deed in lieu of foreclosure, or
otherwise, promptly after the giving of notice by such mortgagee requiring such attornment, subject
however, to the mortgagee agreeing in writing that Tenant shall not be disturbed in its possession
upon Tenant’s attornment to such mortgagee as Landlord and performance of its Lease covenants (both
of which conditions Tenant agrees with all mortgagees to perform).
Landlord shall use commercially

28

 

reasonable efforts to cause the mortgagee of any mortgage to execute and deliver to Tenant an
agreement to such effect on such mortgagee’s standard form. Tenant agrees that any mortgagee may
at its option unilaterally elect to subordinate, in whole or in part and by instrument in form and
substance satisfactory to such mortgagee alone, the lien of its mortgage (or the priority of its
ground lease) to some or all provisions of this Lease.

     Tenant agrees that this Lease shall survive the merger of estates of ground (or improvements)
lessor and lessee. Until a mortgagee (either superior or subordinate to this Lease) forecloses
Landlord’s equity of redemption (or terminates in the case of a ground or improvements lease), no
mortgagee shall be liable for failure to perform any of Landlord’s obligations (and such mortgagee
shall thereafter be liable only after it succeeds to and holds Landlord’s interest and then only as
limited herein). Any mortgagee (or any other successor to Landlord acquiring the Property by
foreclosure, deed in lieu of foreclosure, or otherwise) shall
not be (i) liable for any previous act or omission of Landlord under the Lease; (ii) subject
to any credit, demand, claim, counterclaim, offset or defense which theretofore accrued to Tenant
against Landlord; (iii) unless consented to by such mortgagee, bound by any previous amendment or
modification of the Lease or by any previous prepayment of more than one month’s payment of Annual
Fixed Rent or additional rent; (iv) required to account for any security deposit of Tenant other
than any security deposit actually delivered to such mortgagee by Landlord; (v) bound by any
obligation to make any payment to Tenant or grant any credits, except for services, repairs,
maintenance and restoration provided for under the Lease to be performed by Landlord after the date
of such attornment; or (vi) responsible for any monies owing by Landlord to Tenant. Tenant shall
give notice of any alleged non-performance on the part of Landlord to any mortgagee of which Tenant
has notice, simultaneously with the default notice delivered to Landlord; and Tenant agrees that
such mortgagee shall have a separate, consecutive reasonable cure period of no less than 30 days
(to be reasonably extended in the same manner Landlord’s 30 day cure period is to be extended)
following Landlord’s cure period during which such mortgagee may, but need not, cure any
non-performance by Landlord. The agreements in this Lease with respect to the rights and powers of
a mortgagee constitute a continuing offer to any person which may be accepted by taking a mortgage
(or entering into a ground or improvements lease) of the Premises.

     10.2 Rent Assignment. If from time to time Landlord assigns this Lease or the rents
payable hereunder to any person, whether such assignment is conditional in nature or otherwise,
such assignment shall not be deemed an assumption by the assignee of any obligations of Landlord;
but the assignee shall be responsible only for non-performance of Landlord’s obligations which
occur after it succeeds to and only while it holds Landlord’s interest in the Premises.

     10.3 Other Instruments. The provisions of this Article shall be self-operative;
nevertheless, Tenant agrees to execute, acknowledge and deliver any subordination, attornment or
priority agreements or other instruments conforming to the provisions of this Article (and being
otherwise commercially reasonable) from time to time requested by Landlord or any mortgagee in
furtherance of the foregoing, and further agrees that its failure to do so within ten (10) days
after written demand shall be subject to the default provisions of this Lease.

SIGNATURES FOLLOW ON NEXT PAGE

29

 

     WITNESS the execution hereof under seal as of the date first set forth above.

	 	 	 	 	 	 	 	 	 
	TENANT:	 	NETEZZA CORP., a Delaware corporation	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ P.J. Scannell, Jr.	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	P.J. Scannell, Jr.	 	 
	 

	 	 	 	Title:	 	SVP + CFO	 	 
	 
	 	 	 	 	 	 	 	 
	LANDLORD:	 	NE WILLIAMS II, LLC,	 	 
	 	 	a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Joseph Versaggi	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	Joseph Versaggi	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	Vice President	 	 
	 	 	 	 	 	 	 	 	 

30

 

APPENDIX A

PREMISES PLAN

See attached plan.

[Floor Plan]

A-1

 

APPENDIX B

WORK LETTER

     THIS
WORK LETTER AGREEMENT (“Work Letter”) is entered into as of
the ___ day of ___, 2008
by and between NE WILLIAMS II, LLC (“Landlord”), and NETEZZA CORP. (“Tenant”).

RECITALS

     A. Concurrently with the execution of this Work Letter, Landlord and Tenant have entered into
the Lease covering certain Premises more particularly described in the Lease. All terms not
defined herein have the same meanings as set forth in the Lease.

     B. In order to induce Tenant to enter into the Lease and in consideration of the mutual
covenants hereinafter contained, Landlord and Tenant agree as follows:

     1. LANDLORD’S WORK. As used in the Lease and this Work Letter Agreement, the term
“Landlord’s Work” means those items of general tenant improvement construction shown on the Final
Plans (described in Paragraph 4(b) below), including, but not limited to, partitioning, doors,
ceilings, floor coverings, wall finishes (including paint and wall coverings), electrical
(including lighting, switching, telephones, outlets, etc.), plumbing, heating, ventilating and air
conditioning, fire protection, cabinets and other millwork and distribution of Building services
such as sprinkler and electrical service. All Landlord’s Work and components thereof shall at all
times be and remain the sole property of Landlord.

     Landlord, at its sole cost and expense, shall (a) demise the Premises in accordance with code
and (b) deliver the roof and HVAC system for the Building in good working order, which Landlord
shall warrant for one year after the Lease Commencement Date.

     2. CONSTRUCTION REPRESENTATIVES. Landlord appoints the following person(s) as
Landlord’s representative (“Landlord’s Representative”) to act for Landlord in all matters covered
by this Work Letter:

	 	 	 	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 

Tenant appoints the following person(s) as Tenant’s representative (“Tenant Representative”) to act
for Tenant in all matters covered by this Work Letter.

	 	 	 	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 

All communications with respect to the matters covered by this Work Letter are to be made to
Landlord’s Representative or Tenant’s Representative, as the case may be, in writing, in compliance
with the notice provisions of the Lease. Either party may change its representative under this
Work Letter at any time by written notice to the other party in compliance with the notice
provisions of the Lease.

     3. DESIGN AND CONSTRUCTION. All Landlord’s Work shall be performed by contractors
selected and engaged by Landlord. Landlord’s contractor shall competitively bid each trade to at
least three (3) qualified subcontractors. Tenant has engaged ID Group (the “Architect”) to design
the interior space of the Premises.

B-1

 

     4. WORK SCHEDULE. Attached hereto as Schedule 1 is a schedule (the “Work
Schedule”) which sets forth the timetable for the planning and completion of the installation of
the Landlord’s Work. The Work Schedule has been approved by both Landlord and Tenant.

     5. TENANT IMPROVEMENT PLANS.

     (a) Preparation of Final Plans. Attached hereto as Schedule 2 is a
preliminary floor plan and outline specification (“the “Preliminary Plans”), which have been
approved by both Landlord and Tenant. In accordance with the Work Schedule and the Preliminary
Plans, the Architect will prepare complete architectural plans and complete, fully-engineered
construction drawings and specifications for all of Landlord’s Work, including mechanical,
electrical, plumbing and structural elements (collectively the “Final Plans”). The Final Plans
will show: (i) the subdivision (including partitions and walls), layout, lighting, finish and
decoration work (including carpeting and other floor coverings) for the Premises; (ii) all internal
and external communications and utility facilities which will require the installation of conduits
or other improvements from the base Building shell; and (iii) all other specifications for
Landlord’s Work. The Final Plans will be submitted to Landlord for Landlord’s approval thereof
which shall not be unreasonably withheld provided that the Final Plans are substantially in
accordance with the Preliminary Plans. Landlord agrees to advise Tenant in writing of any
disapproval of the Final Plans within five (5) business days of receipt thereof. If Landlord does
not respond in writing within such five business day period, the Final Plans as presented shall be
deemed approved by Landlord. If Landlord in its reasonable discretion does not approve the Final
Plans, Tenant will then cause the Architect to redesign the Final Plans incorporating the revisions
reasonably requested by Landlord so as to make the Final Plans substantially consistent with the
Preliminary Plans. Within ten (10) business days of Landlord’s approval (or deemed approval) of
the Final Plans, Landlord shall provide Tenant with a written summary (the “Excess Cost Summary”)
of the cost of the Landlord’s Work, based on the Final Plans, that is in excess of the Tenant
Improvement Allowance (defined below) (“Excess Costs”). Tenant agrees to advise Landlord in
writing of any disapproval of the Excess Cost Summary, and the reasons therefor within five (5)
business days of receipt thereof. If Tenant fails to timely deliver to Landlord Tenant’s written
disapproval of the Excess Cost Summary, the Excess Cost Summary shall be deemed approved by Tenant.
If the revised Excess Cost Summary is timely disapproved by Tenant pursuant to this paragraph,
Tenant shall provide to Landlord a written explanation of the reason(s) for such disapproval
concurrently with its disapproval, and the Excess Cost Summary, as appropriate, shall be promptly
revised and resubmitted to Tenant for approval. If Tenant fails to provide a written explanation
as and when required by this paragraph, the Excess Cost Summary shall be deemed approved by Tenant.
Tenant agrees to approve in writing the revised Excess Cost Summary within five business days of
its receipt thereof. If Tenant fails to timely deliver to Landlord written approval of the Excess
Cost Summary, the Excess Cost Summary shall be deemed approved by Tenant. Tenant’s approval of the
Excess Cost Summary shall constitute Tenant’s agreement to pay Landlord the Excess Costs.

     (b) Requirements of the Final Plans. The Final Plans will include locations and
complete dimensions, and Landlord’s Work, as shown on the Final Plans, will: (i) be compatible with
the Building shell and with the design, construction and equipment of the Building; (ii) comply
with all applicable laws, ordinances, rules and regulations of all governmental authorities having
jurisdiction, and all applicable insurance regulations; and (iii) be of a nature and quality
consistent with the overall objectives of Landlord for the Building, as determined by Landlord in
its reasonable but subjective discretion.

     (c) Submittal of Final Plans. Once approved, the Architect will submit the Final
Plans to the appropriate governmental agencies for plan checking and the issuance of a building
permit. The Architect will make any changes to the Final Plans which are requested by the
applicable governmental authorities to obtain the building permit. Any changes requested by
governmental authorities will be made only with the prior written approval of Landlord and Tenant,
and only if Tenant agrees to pay any excess costs resulting from the design and/or construction of
such requested changes (the “Additional Costs”). Landlord shall revise the Excess Cost Summary by
increasing the Excess Costs by the amount of the Additional Costs resulting from plan modifications
required by any governmental authority. Tenant hereby acknowledges

B-2

 

that any such changes will be subject to the terms of Section 6 below. Any Additional Costs are to
be paid by Tenant to Landlord within ten business days after receipt by Tenant of an invoice for
such Additional Costs from Landlord.

     6. PAYMENT FOR LANDLORD’S WORK.

     (a) Tenant Improvement Allowance and Excess Costs. Landlord shall pay for Landlord’s
Work up to a maximum of $22.50 per rentable square foot (the “Tenant Improvement Allowance”). The
Tenant Improvement Allowance shall only be used for:

(i) Payment to the Architect for all usual design and architectural fees, including,
without limitation, all reasonable architectural and engineering costs of preparing
the Final Plans, including mechanical, electrical, plumbing and structural drawings,
and all other aspects necessary to complete the Final Plans.

(ii) Payment of plan check, permit and license fees relating to construction of
Landlord’s Work.

(iii) Construction of Landlord’s Work, including, without limitation, the following:

(A) Installation within the Premises of all partitioning, doors, floor
coverings, ceilings, wall coverings and painting, millwork and similar items;

(B) All electrical wiring, lighting fixtures, outlets and switches, and other
electrical work to be installed within the Premises;

(C) The furnishing and installation of all duct work, terminal boxes,
diffusers and accessories required for the completion of the heating,
ventilation and air conditioning systems within the Premises, including the
cost of meter and key control for after-hour air conditioning;

(D) Any additional tenant requirements including, but not limited to, air
quality control, special heating, ventilation and air conditioning, noise or
vibration control or other special systems;

(E) All fire and life safety control systems such as fire walls, sprinklers,
fire alarms, including piping and wiring, installed within the Premises;

(F) All plumbing, including fixtures and pipes, to be installed within the
Premises;

(G) Testing and inspection costs; and

(H) Contractor’s fees, including, but not limited to, any fees based on
general conditions.

(iv) All other out-of-pocket costs to be reasonably expended by Landlord in the
construction of Landlord’s Work. Landlord shall not be entitled to charge any
management, inspection, project management or other fee in connection with the
Landlord’s Work.

In addition to the Tenant Improvement Allowance, Landlord shall also provide to Tenant an
additional allowance (the “Additional TI Allowance”) of up to $412,500.00 ($7.50 per rentable
square foot) to be used toward Excess Costs. Such amount shall accrue interest at a rate of nine
percent (9%) per annum and the principal shall be amortized over the initial Lease Term. Payments
of principal and interest with respect to the Additional TI Allowance shall be made on a monthly
basis and paid with payments of Fixed Rent. Any Excess Costs which are not being paid for by the
Additional TI Allowance are to be paid by Tenant to Landlord within thirty (30) days after receipt
by Tenant of an invoice for such Excess Costs from Landlord.

B-3

 

     (b) Changes. If, after the Final Plans and the Excess Costs Summary have been
approved by Tenant, Tenant requests any changes or substitutions to the Final Plans or to
Landlord’s Work during construction, Tenant shall complete a change order request form approved by
Landlord and forward it to Landlord’s representative. All such changes shall be subject to
Landlord’s prior written approval in accordance with Paragraph 11. Prior to commencing any change,
Landlord shall prepare and deliver to Tenant, for Tenant’s approval, a change order setting forth
the total cost of such change, which shall include associated architectural, engineering,
construction contractor’s costs and fees, and completion schedule changes. If Tenant fails to
approve such change order within five business days after delivery by Landlord, Tenant shall be
deemed to have withdrawn the proposed change and Landlord shall not proceed to perform the change.
Any additional costs related to such change are to be paid by Tenant to Landlord within ten days
after receipt by Tenant of an invoice for such additional costs from Landlord.

     (c) Payment of Excess Costs. Within fifteen days of Landlord’s request, Tenant shall
pay to Landlord that portion of the Excess Costs payable with respect to each construction draw
presented by Landlord’s contractor based on the percentage that the Excess Costs bear to the total
cost of Landlord’s Work. Notwithstanding the foregoing, if the amount of the Excess Costs changes
as a result of a change order, Tenant shall pay such increased amount within ten business days of
receipt by Tenant of an invoice, together with reasonable supporting documentation, for such
increased costs.

     (d) Credit. Unless specifically set forth herein, Tenant shall not be entitled to any
credit for any portion of the Tenant Improvement Allowance which is not used.

     7. CONSTRUCTION OF LANDLORD’S WORK. Until Tenant approves the Final Plans and the
Excess Cost Summary, and all necessary permits have been obtained from the appropriate governmental
authorities, Landlord will be under no obligation to cause the construction of any of Landlord’s
Work. Once the foregoing conditions have been met, Landlord’s contractor will commence and
diligently proceed with the construction of the Landlord’s Work pursuant to the terms of a contract
between Landlord and Landlord’s contractor calling for the completion of Landlord’s Work in a good
and workmanlike manner conforming to all applicable Legal Requirements, subject to Tenant Delays
(as described in Paragraph 8 below) and Force Majeure Delays (as described in Paragraph 9 below).
The costs of Landlord’s Work shall be paid as provided in Paragraphs 5 and 6 hereof. Construction
inspections will be made periodically by qualified Landlord employees or subcontractors and Tenant
shall have the right to have qualified Tenant employees or subcontractors review compliance of
Landlord’s Work with the Final Plans.

     8. TENANT DELAYS. For purposes of this Work Letter, “Tenant Delays” means any delay
in the completion of the Landlord’s Work resulting from any or all of the following:

(a) Tenant’s failure to timely perform any of its obligations pursuant to this Work Letter,
including any failure to approve any item or complete, on or before the due date therefor,
any action item which is Tenant’s responsibility pursuant to this Work Letter or the Work
Schedule;

(b) Change orders requested by Tenant after approval of the Final Plans;

(c) Any delay of Tenant in making payment to Landlord for any costs due from Tenant under
this Work Letter or the Lease; or

(d) Any other act or failure to act by Tenant, Tenant’s employees, agents, architects,
independent contractors, consultants and/or any other person performing or required to
perform services on behalf of Tenant.

     9. FORCE MAJEURE DELAYS. For purposes of the Work Letter, “Force Majeure Delays”
means any and all causes beyond Landlord’s reasonable control, including, without limitation,
delays caused by Tenant, governmental regulation, governmental restriction, strike, labor dispute,
riot, accident, mechanical breakdown, shortages of or inability to obtain labor, fuel, steam,
water, electricity or materials, acts of God, war, enemy action, civil commotion, fire or other
casualty.

B-4

 

     10. APPROVALS. Whenever any party under this Work Letter must reasonably grant its
approval such party shall also not unreasonably delay or condition its approval. Unless otherwise
required by the terms of this Work Letter, any approval shall be deemed granted unless such party
responds within seven days after its receipt of the items for which approval is sought.

     11. LANDLORD’S APPROVAL. Landlord, in its sole discretion, may withhold its approval
of the Final Plans, change orders or other documents or plans that:

     (a) Exceeds or adversely and unreasonably affects the structural integrity of the Building, or
any part of the heating, ventilating, air conditioning, plumbing, mechanical, electrical,
communication, or other systems of the Building;

     (b) Is not approved by any Superior Mortgagee or Superior Lessee at the time the work is
proposed;

     (c) Would not be approved by a prudent owner of property similar to the Building;

     (d) Violates any agreement which affects the Building or the Land or binds the Landlord;

     (e) Landlord reasonably believes will reduce the market value of the Premises or the Building
at the end of the Term of the Lease; or

     (f) Does not conform to the applicable building code or is not approved by any governmental,
quasi-governmental, or utility authority with jurisdiction over the Premises.

     12. DEFAULTS BY TENANT. In the event of any default by Tenant with respect to any of
the provisions of this Work Letter or any other agreement with Landlord relating to construction in
or about the Premises, beyond notice and cure periods specified in the Lease, Landlord may, in
addition to exercising any other right or remedy Landlord may have, treat such default as a default
by Tenant under the Lease and exercise any or all rights available under the Lease in connection
therewith, including, if applicable, the right of termination. In the event of any such
termination of the Lease by Landlord, Landlord may elect in its absolute discretion, with respect
to any work performed by or on behalf of Tenant prior to the date of such termination, to either:

(a) retain for its own use part or all of any such work, without compensation to Tenant
therefor;

or

(b) demolish or remove part or all of any such work and restore part or all of the Premises
to its condition prior to the initial tender of possession thereof to Tenant, in which event
Tenant shall reimburse Landlord upon demand for all costs reasonably incurred by Landlord in
connection with such demolition, removal and/or restoration.

SIGNATURES FOLLOW ON NEXT PAGE

B-5

 

IN WITNESS WHEREOF, the undersigned Landlord and Tenant have caused this Work Letter to be duly
executed by their duly authorized representatives as of the date of the Lease.

	 	 	 	 	 
	LANDLORD:	 	 
	 
	NE WILLIAMS II, LLC	 	 
	 
	 	 	 	 
	By:
	 	/s/ Joseph Versaggi 	 	 
	 

	 	 

Name: Joseph Versaggi
	 	 
	 

	 	Title:   Vice President	 	 
	 
	 	 	 	 
	TENANT:	 	 
	 
	NETEZZA CORP.	 	 
	 
	 	 	 	 
	By:
	 	/s/ P.J. Scannell, Jr. 	 	 
	 

	 	 

Name: P.J. Scannell, Jr.
	 	 
	 

	 	Title:   SVP &
CFO	 	 

B-6

 

APPENDIX C

RULES AND REGULATIONS 

     The following Rules and Regulations constitute a part of the Lease and of Tenant’s obligations
thereunder in respect of Tenant’s use and occupancy of the Premises in the Building. In the event
of any direct conflict between the terms of these Rules and Regulations, as the same may be
amended, and the terms and provisions of this Lease, the terms of the Lease shall control. Tenant
acknowledges that these Rules and Regulations are intended to supplement the Lease.

 

I. BUILDING HOURS

     1.1 Except to the extent otherwise provided in this Lease, the Building is open from 8:00 a.m.
to 6:00 p.m. Monday through Friday and 8:00 a.m. to 12:00 p.m. on Saturdays. The Building is
closed on Sundays and all national holidays.

     1.2 If you wish to use the Building during other times, please obtain pass-cards for
authorized members of your staff from Landlord’s Managing Agent. As additional security, all
persons entering the Building after hours are required to sign in and out in a logbook provided for
that purpose.

     1.3 If you will need after-hours heating or air conditioning services, please notify
Landlord’s Managing Agent by 3:00 p.m. on the previous working day. (These Building services are
either reduced or shut off completely when the Building is closed, except on Saturdays from
8:00 a.m. to 12:00 p.m.) You will be charged for overtime use of the Building services.

     1.4 You are advised, for the protection and safety of your personnel, to lock front doors at
the end of each working day. Front doors should also be locked whenever your receptionist leaves
the area.

     1.5 If you have night-line telephone service, please submit a list of numbers and personnel to
Landlord’s Managing Agent. This will enable the security guard to contact your office after
6:00 p.m. on the occasions when visitors call after normal working hours.

     1.6 If you wish to remove fixtures or materials from your premises after 6:00 p.m. or to have
work performed after 6:00 p.m. by someone who does not have a Building pass, Landlord’s Managing
Agent must be notified.

II. ELEVATORS, DELIVERIES AND PARKING

     2.1 If you expect delivery of any bulky material, notify the Landlord’s Managing Agent
reasonably in advance so that elevators may be scheduled and elevator pads may be installed. This
protects both your shipment and the elevators. For the convenience of all, elevators may not be
used for deliveries during the peak traffic hours of 8:00 a.m. to 9:30 a.m.; 11:30 a.m. to
1:30 p.m.; and 4:30 p.m. to 6:00 p.m.

     2.2 All larger deliveries must be made from the designated Building loading dock area. Large
deliveries can be expedited by notifying Landlord’s Managing Agent twenty-four (24) hours in
advance. The receiving area can accommodate only certain types and sizes of vehicles. All hand
trucks used for interior deliveries must be equipped with rubber bumpers and tires.

C-1

 

     2.3 The loading dock may be used only for deliveries. No vehicles are allowed to stand or
park in this area after unloading nor are vehicles allowed to park at the loading dock for service
calls. You should advise your vendors and suppliers of this rule. Any vehicles abusing the truck
dock privileges are subject to being towed at the owner’s expense.

III. GENERAL USE OF BUILDING AND PREMISES

     3.1 Tenants are not permitted to place or store property on the sidewalks, passageways,
parking areas or courtyards adjacent to the Building or in the elevators, vestibules, stairways, or
corridors (except as may be necessary for brief periods during deliveries).

     3.2 No bicycles or animals may be brought into or kept in or about the Building or premises.

     3.3 Rubbish, rags, sweepings, acid and any and all harmful or damaging substances may not be
deposited in the lavatories or in the janitor closets. Please make arrangements with Landlord’s
Managing Agent for disposal of any unusual trash.

     3.4 The Building is a “smoke-free” building; smoking is prohibited in the Building lobby and
other common areas, all elevators, all rest rooms, the elevator lobby on each floor (even if such
floor is occupied by only one tenant) and the parking garage.

IV. REPAIRS AND SERVICES

     4.1 You are responsible for all general repairs and maintenance of your Premises including,
but not limited to, Tenant supplied supplementary air conditioning, exterior doors and exterior
signs. All repairs, installations or alterations to the Building or its fixtures must first be
approved and scheduled by Landlord’s Managing Agent.

     4.2 All requests for work to be done in your Premises by any of the Building Management Staff
should be directed to Landlord’s Managing Agent. Building employees are not permitted to perform
any work outside their regular duties except upon special instructions from Landlord’s Managing
Agent.

     4.3 All schedules for the performance of your construction and repair work must be coordinated
by Landlord’s Managing Agent to avoid conflicts with various building construction and maintenance
schedules. Tenants must inform Landlord’s Managing Agent at least 72 hours before any work is to
begin, of the nature of the work, where and when it is to be performed, the name of the contractor
or concern doing the work, and the name of the individual who will supervise the performance of
the work. You will be required to obtain from the persons doing work, certificates of insurance
coverage, signed lien waivers, and payment and performance bonds in form and substance satisfactory
to Landlord. Work may not begin until such requirements have been satisfied.

     4.4 Landlord shall purchase and install, at your expense, all lamps, tubes, bulbs, starters
and ballasts.

C-2

 

V. ELECTRICAL SYSTEM; ENERGY CONSERVATION

     5.1 In order to assure that the Building’s electrical standards are not exceeded and to avert
possible adverse effect on the Building’s electrical system, you may not, without Landlord’s prior
consent, connect any fixtures, appliances or equipment to the Building’s electric distribution
system other than standard office equipment, such as typewriters, pencil sharpeners, adding
machines, hand held or desk top calculators, dictaphones, office computers and copiers.

     5.2 Notwithstanding anything to the contrary contained in the Lease, Landlord reserves the
right to implement policies and procedures it deems, in its reasonable judgment, to be necessary or
expedient in order to conserve and/or preserve energy and related services, or to be necessary or
required in order to comply with applicable government laws, rules, regulations, codes, orders and
standards.

     5.3 The windows of the Building are designed for insulation and to reduce glare. Building
standard blinds or drapes contribute to the effectiveness of the Building’s heating and cooling
systems. You should keep the blinds or drapes closed when windows are exposed to the sun’s rays in
summer and keep them open when the sun is bright enough to provide warmth during the winter months.

VI. COOKING AND RELATED ACTIVITIES

     6.1 You may not use or permit the use of any part of the Premises for the preparation or
dispensing of food. You may, nevertheless, with Landlord’s prior written consent, which consent
shall not be unreasonably withheld, install hot-cold water fountains, microwave ovens, coffee
makers and refrigerator-sink-stove combinations for the preparation of beverages and foods,
provided that no cooking, frying, etc., are carried on that require special exhaust venting. The
Building contains no facilities to provide special venting.

VII. LIFE SAFETY AND EMERGENCY PROCEDURES

     7.1 In case of emergency situations such as power failure, water leaks or serious injury, call
Landlord’s Managing Agent immediately. In case of fire or smoke, pull the nearest alarm (located
on your floor) and then call Landlord’s Managing Agent.

C-3

 

APPENDIX D

FORM OF LETTER OF CREDIT

[On Bank’s Letterhead]

IRREVOCABLE LETTER OF CREDIT

	 	 	 	 	 
	 	[Date]

 	 
	 	 	 
	 	 	 
	 	 	 
	 

Irrevocable Letter of Credit No._________

Beneficiary

NE Williams II, LLC

c/o Great Point Investors LLC

Two Center Plaza, Suite 410

Boston, MA 02108

Attn: Randolph L. Kazazian III

Applicant

[Name]

[Address]

Expiration Date: [Sixty Days after scheduled Expiration Date of Lease]

Ladies and Gentlemen:

                                         (“Issuer”) hereby issues our Irrevocable Letter of Credit No.                    
in Beneficiary’s favor in the amount of
                                         U.S. Dollars available by your
sight drafts drawn on us and accompanied by a written statement signed on behalf of NE Williams II,
LLC, its successors or assigns, stating as follows:

“The undersigned certifies that NE Williams II, LLC and/or its successors and assigns is
entitled to draw under the Irrevocable Letter of Credit
No.___ pursuant to the terms of
a Lease, dated                     , between NE Williams II, LLC and [Applicant].”

Partial drawings are permitted.

We engage with you that all drafts drawn under and in compliance with the terms of this Irrevocable
Letter of Credit will be duly honored if presented to us on or before the expiration date set forth
above. Any draft drawn by you under this Irrevocable Letter of Credit must bear the clause “Drawn
on Irrevocable Letter of Credit No. ___ of [Issuer Bank]”.

This Irrevocable Letter of Credit is fully transferable and assignable by Beneficiary and its
successors, assigns and transferees. Beneficiary shall send a written request to Issuer to assign
or transfer this Irrevocable Letter of Credit and upon presentation of this Irrevocable Letter of
Credit, as it may be amended, to Issuer, Issuer shall re-issue this Irrevocable Letter of Credit in
the then outstanding amount in favor of Beneficiary’s successor, assign or transferee.

D-1

 

This Irrevocable Letter of Credit sets forth in full the terms of our undertaking, and such
undertaking shall not in any way be limited, modified, amended or amplified, except by a written
document executed by the parties hereto.

Except as otherwise expressly stated herein, this Irrevocable Letter of Credit is subject to the
“Uniform Customs and Practices for Documentary Credits (1993 Revision), International Chamber of
Commerce Publication No. 500.”

Very truly yours,

	 	 	 	 	 
	[ISSUING
BANK]
	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

D-2

 

SCHEDULE 8.13

EXISTING RIGHTS AFFECTING

TENANT’S EXPANSION OPTION

None

D-1exv10w1

 

Exhibit 10.1

EXECUTION COPY

	 	 	 
	Name of Executive:

	 	Neal R. Verfuerth
	Position:

	 	President and Chief Executive Officer
	Fiscal Year 2008 Base Salary:

	 	$291,600
	Fiscal Year 2009 Base Salary:

	 	$460,000
	 
	 	 
	Initial Term:

	 	Effective date through March 31, 2009
	Renewal Periods are:

	 	2 Years
	Post-Change of Control Renewal Period is:

	 	3 Years
	 
	 	 
	Severance Multiplier is:

	 	2x
	Post-Change of Control Severance Multiplier is:

	 	3x

EXECUTIVE EMPLOYMENT AND SEVERANCE AGREEMENT

     This Agreement (“Agreement”) is between the Executive named above (“Executive”), on the one
hand, and Orion Energy Systems, Inc. (“Orion” and, together with its subsidiaries, the “Company”),
on the other.

     WHEREAS, the Executive is employed by Orion in a key employee capacity and the Executive’s
services are valuable to the conduct of the business of the Company;

     WHEREAS, Orion and Executive desire to specify the terms and conditions on which Executive
will continue employment on and after the date the Company’s common stock is first sold to the
public pursuant to an effective registration statement filed under the Securities Act of 1933, as
amended (the “IPO”), and under which Executive will receive severance in the event that Executive
separates from service with the Company;

     WHEREAS, Orion and Executive are party to an Employment Agreement, dated as of April 1, 2005
(the “2005 Employment Agreement”), which entitles Executive to initial ownership, and Orion to an
option for subsequent acquisition and ownership, of any Intellectual
Property Work Product (as hereinafter defined) made, conceived, discovered or developed during
the term of the 2005 Employment Agreement;

     WHEREAS, pursuant to the 2005 Employment Agreement, Orion has acquired the full and exclusive
right, title and interest in and to certain Intellectual Property Work Product pursuant to eight
(8) Intellectual Property Assignment Agreements, by and between Executive and the Company, dated as
of August 24, 2006, June 27, 2007, June 27, 2007, June 27, 2007, June 29, 2007, August 15, 2007,
August 15, 2007 and August 15, 2007, respectively (collectively, the “Intellectual Property
Assignment Agreements”); and

     WHEREAS, Orion and Executive desire for the Company to retain its full and exclusive right,
title and interest in and to the Intellectual Property Work Product under the Intellectual Property
Assignment Agreements and to terminate the 2005 Employment Agreement, and to irrevocably transfer,
convey and assign all of Executive’s right, title and interest in and to all Intellectual Property
Work Product and all other Innovations (as hereinafter defined) developed, discovered, made,
authored or conceived by Executive, whether prior to the date of this Agreement or during the term
of this Agreement, to the Company.

 

 

          NOW, THEREFORE, for good and valuable consideration, the parties agree as follows:

          1. Effective Date; Term. This Agreement shall become effective on the date of the
Company’s IPO and continue until the end of the initial term set forth above. Thereafter, the
Agreement shall renew automatically for successive renewal periods as set forth above unless and
until either party provides written notice to the other party of the intent not to renew the
Agreement at least ninety (90) days prior to the end of any term. Notwithstanding the foregoing,
if a Change of Control occurs prior to the end of any term, the Agreement shall be automatically
extended for the post- Change of Control renewal period set forth above beginning on the date of
the Change of Control. Expiration of this Agreement will not affect the rights or obligations of
the parties hereunder arising out of, or relating to, circumstances occurring prior to the
expiration of this Agreement, which rights and obligations will survive the expiration of this
Agreement.

          1A. Intellectual Property Buyout. In consideration of Executive’s agreement to
terminate the 2005 Employment Agreement and to irrevocably transfer, convey and assign all of
Executive’s right, title and interest in and to all Intellectual Property Work Product and all
other Innovations developed, discovered, made, authored or conceived by Executive, whether prior to
the date of this Agreement or during the term of this Agreement, to the Company, the Company shall
pay Executive $950,000 in a lump sum cash payment as soon as reasonably practicable after the date
hereof.

          2. Definitions. For purposes of this Agreement, the following terms shall have the
meanings ascribed to them:

     (a) “Accrued Benefits” shall mean the following amounts, payable as described herein:
(i) all base salary for the time period ending with the Termination Date; (ii) reimbursement
for any and all monies advanced in connection with the Executive’s employment for reasonable
and necessary expenses incurred by the Executive on behalf of the Company for the time
period ending with the Termination Date; (iii) any and all other cash earned through the
Termination Date and deferred at the election of the Executive or pursuant to any deferred
compensation plan then in effect; and (iv) all other payments and benefits to which the
Executive
(or in the event of the Executive’s death, the Executive’s surviving spouse or other
beneficiary), including those provided pursuant to Exhibit A, is entitled on the Termination
Date under the terms of any benefit plan of the Company, excluding severance payments under
any Company severance policy, practice or agreement in effect on the Termination Date.
Payment of Accrued Benefits shall be made promptly in accordance with the Company’s
prevailing practice with respect to clauses (i) and (ii) or, with respect to clauses (iii)
and (iv), pursuant to the terms of the benefit plan or practice establishing such benefits.

     (b) “Base Salary” shall mean the Executive’s annual base salary with the Company as in
effect from time to time.

     (c) “Board” shall mean the board of directors of Orion or a committee of such Board
authorized to act on its behalf in certain circumstances, including the Compensation
Committee of the Board.

     (d) “Cause” shall mean a good faith finding by the Board that Executive has (i) failed,
neglected, or refused to perform the lawful employment duties related to his or

2

 

her position
or as from time to time assigned to him (other than due to Disability); (ii) committed any
willful, intentional, or grossly negligent act having the effect of materially injuring the
interest, business, or reputation of the Company; (iii) violated or failed to comply in any
material respect with the Company’s published rules, regulations, or policies, as in effect
or amended from time to time; (iv) committed an act constituting a felony or misdemeanor
involving moral turpitude, fraud, theft, or dishonesty; (v) misappropriated or embezzled any
property of the Company (whether or not an act constituting a felony or misdemeanor); or
(vi) breached any material provision of this Agreement or any other applicable
confidentiality, non-compete, non-solicit, general release, covenant not-to-sue, or other
agreement with the Company.

(e) “Change of Control” shall mean and be limited to any of the following:

     (i) any Person (other than (A) the Company or any of its subsidiaries, (B) a
trustee or other fiduciary holding securities under any employee benefit plan of the
Company or any of its subsidiaries, (C) an underwriter temporarily holding
securities pursuant to an offering of such securities or (D) a corporation owned,
directly or indirectly, by the shareholders of the Company in substantially the same
proportions as their ownership of stock in the Company (“Excluded Persons”)) is or
becomes the Beneficial Owner, directly or indirectly, of securities of the Company
(not including in the securities beneficially owned by such Person any securities
acquired directly from the Company or its Affiliates after the IPO Date, pursuant to
express authorization by the Board that refers to this exception) representing
twenty percent (20%) or more of either the then outstanding shares of common stock
of the Company or the combined voting power of the Company’s then outstanding voting
securities; or

     (ii) the following individuals cease for any reason to constitute a majority of
the number of directors of the Company then serving: (A) individuals who, on the
IPO Date, constituted the Board and (B) any new director (other than a director
whose initial assumption of office is in connection with an actual or threatened
election contest, including but not limited to a consent solicitation, relating to
the election of directors of the Company, as such terms are used in Rule 14a-11 of
Regulation 14A under the Act) whose appointment or election by the Board or
nomination for election by the Company’s shareholders was approved by a vote of at
least two-thirds (2/3) of the directors then still in office who either were
directors on the IPO Date, or whose
appointment, election or nomination for election was previously so approved
(collectively the “Continuing Directors”); provided, however, that individuals who
are appointed to the Board pursuant to or in accordance with the terms of an
agreement relating to a merger, consolidation, or share exchange involving the
Company (or any direct or indirect subsidiary of the Company) shall not be
Continuing Directors for purposes of this Agreement until after such individuals are
first nominated for election by a vote of at least two-thirds (2/3) of the then
Continuing Directors and are thereafter elected as directors by the shareholders of
the Company at a meeting of shareholders held following consummation of such merger,
consolidation, or share exchange; and, provided further, that in the event the
failure of any such persons appointed to the Board to be Continuing Directors
results in a Change of Control, the subsequent qualification of such persons as
Continuing Directors shall not alter the fact that a Change of Control occurred; or

3

 

     (iii) the consummation of a merger, consolidation or share exchange of the
Company with any other corporation or the issuance of voting securities of the
Company in connection with a merger, consolidation or share exchange of the Company
(or any direct or indirect subsidiary of the Company), in each case, which requires
approval of the shareholders of the Company, other than (A) a merger, consolidation
or share exchange which would result in the voting securities of the Company
outstanding immediately prior to such merger, consolidation or share exchange
continuing to represent (either by remaining outstanding or by being converted into
voting securities of the surviving entity or any parent thereof) at least fifty
percent (50%) of the combined voting power of the voting securities of the Company
or such surviving entity or any parent thereof outstanding immediately after such
merger, consolidation or share exchange, or (B) a merger, consolidation or share
exchange effected to implement a recapitalization of the Company (or similar
transaction) in which no Person (other than an Excluded Person) is or becomes the
Beneficial Owner, directly or indirectly, of securities of the Company (not
including in the securities beneficially owned by such Person any securities
acquired directly from the Company or its Affiliates after the IPO Date, pursuant to
express authorization by the Board that refers to this exception) representing
twenty percent (20%) or more of either the then outstanding shares of common stock
of the Company or the combined voting power of the Company’s then outstanding voting
securities; or

     (iv) the consummation of a plan of complete liquidation or dissolution of the
Company or a sale or disposition by the Company of all or substantially all of the
Company’s assets (in one transaction or a series of related transactions within any
period of 24 consecutive months), in each case, which requires approval of the
shareholders of the Company, other than a sale or disposition by the Company of all
or substantially all of the Company’s assets to an entity at least seventy-five
percent (75%) of the combined voting power of the voting securities of which are
owned by Persons in substantially the same proportions as their ownership of the
Company immediately prior to such sale.

Notwithstanding the foregoing, no “Change of Control” shall be deemed to have occurred if
there is consummated any transaction or series of integrated transactions immediately following
which the record holders of the common stock of the Company immediately prior to such transaction
or series of transactions continue to own, directly or indirectly, in the same proportions as their
ownership in the Company, an entity that owns all or substantially all of the assets or voting
securities of the Company immediately following such transaction or series of transactions.

For purposes of this Section 2(e):

     (i) the term “Person” shall mean any individual, firm, partnership, corporation or
other entity, including any successor (by merger or otherwise) of such entity, or a
group of any of the foregoing acting in concert;

     (ii) the terms “Affiliate” and “Associate” shall have the respective meanings
ascribed to such terms in Rule 12b-2 of the General Rules and Regulations of the
Act;

4

 

(iii) the term “Act” means the Securities Exchange Act of 1934, as amended; and

(iv) a Person shall be deemed to be the “Beneficial Owner” of any securities
which:

a) such Person or any of such Person’s Affiliates or Associates has the
right to acquire (whether such right is exercisable immediately or only
after the passage of time) pursuant to any agreement, arrangement or
understanding, or upon the exercise of conversion rights, exchange rights,
rights, warrants or options, or otherwise; provided, however, that a Person
shall not be deemed the Beneficial Owner of, or to beneficially own,
securities tendered pursuant to a tender or exchange offer made by or on
behalf of such Person or any of such Person’s Affiliates or Associates until
such tendered securities are accepted for purchase;

b) such Person or any of such Person’s Affiliates or Associates, directly
or indirectly, has the right to vote or dispose of or has “beneficial
ownership” of (as determined pursuant to Rule l3d-3 of the General Rules and
Regulations under the Act), including pursuant to any agreement, arrangement
or understanding; provided, however, that a Person shall not be deemed the
Beneficial Owner of, or to beneficially own, any security under this
clause b) as a result of an agreement, arrangement or understanding
to vote such security if the agreement, arrangement or understanding: (A)
arises solely from a revocable proxy or consent given to such Person in
response to a public proxy or consent solicitation made pursuant to, and in
accordance with, the applicable rules and regulations under the Act and (B)
is not also then reportable on a Schedule l3D under the Act (or any
comparable or successor report); or

c) are beneficially owned, directly or indirectly, by any other Person with
which such Person or any of such Person’s Affiliates or Associates has any
agreement, arrangement or understanding for the purpose of acquiring,
holding, voting (except pursuant to a revocable proxy as described in
clause b) above) or disposing of any voting securities of the
Company.

     (f) “COBRA” shall mean the provisions of Code Section 4980B.

     (g) “Code” shall mean the Internal Revenue Code of 1986, as amended, as interpreted by
rules and regulations issued pursuant thereto, all as amended and in effect from time to
time. Any reference to a specific provision of the Code shall be deemed to include
reference to any successor provision thereto.

     (h) “Competitive Business Activity” shall mean the design and manufacture of lighting
systems and controls for industrial, commercial and agricultural facilities.

     (i) “Disability” shall mean, subject to applicable law, a total and permanent disability
consisting of a mental or physical disability which precludes the disabled Executive from
performing the material and substantial duties of his employment. Payment of benefits for
total disability under a disability insurance policy shall be

5

 

conclusive as to the existence
of total disability, although such payments are not required in order to establish total
disability for purposes of this Agreement. The Executive has a “total and permanent
disability” if he is precluded by mental or physical disability for 180 days during any
twelve (12) month period. For purposes of this Agreement, an Executive shall be deemed
totally and permanently disabled at the end of such 180th day. In case of a disagreement as
to whether an Executive is totally and permanently disabled and, at the request of any
party, the matter shall be submitted to arbitration as provided for herein, and judgment
upon the award may be entered in any court having jurisdiction thereof. Any costs of such
proceedings (including the reasonable legal fees of the prevailing party) shall be borne by
the non-prevailing party to such arbitration.

     (j) “General Release” shall mean a release of all claims that Executive, and anyone who
may succeed to any claims of Executive, has or may have against Orion, its board of
directors, any of its subsidiaries or affiliates, or any of their employees, directors,
officers, employees, agents, plan sponsors, administrators, successors (including the
Successor), fiduciaries, or attorneys, including but not limited to claims arising out of
Executive’s employment with, and termination of employment from, the Company, but excluding
claims for (i) severance payments and benefits due pursuant to this Agreement and (ii) any
salary, bonus, equity, accrued vacation, expense reimbursement and other ordinary payments
or benefits earned or otherwise due with respect to the period prior to the date of any
Separation from Service. The General Release shall be in a form that is reasonably
acceptable to the Company or the Board.

     (k) “Good Reason” shall mean the occurrence of any of the following without the consent
of Executive: (i) a material diminution in the Executive’s Base Salary; (ii) a material
diminution in the Executive’s authority, duties or responsibilities; (iii) a material
diminution in the authority, duties or responsibilities of the supervisor to whom the
Executive is required to report; (iv) a material diminution in the budget over which the
Executive retains authority; (v) a material change in the geographic location at which the
Executive must perform services; or (vi) a material breach by Orion of any provisions of
this Agreement or any option agreement with the Company to which the Executive is a party.

          (l) “Separation from Service” shall mean Executive’s termination of employment from Orion and
each entity that is required to be included in Orion’s controlled group of corporations within the
meaning of Code Section 414(b), or that is under common control with Orion within the meaning of
Code Section 414(c); provided that the phrase “at least 50 percent” shall be used in place of the
phrase “ at least 80 percent” each place it appears therein or in the regulations thereunder
(collectively, “409A affiliates”). Notwithstanding the foregoing:

          (i) If Executive takes a leave of absence for purposes of military leave, sick leave or
other bona fide leave of absence, Executive will not be deemed to have incurred a Separation
from Service for the first six (6) months of the leave of absence, or if longer, for so long
as Executive’s right to reemployment is provided either by statute or by contract.

          (ii) Subject to paragraph (i), Executive shall incur a Separation from Service when the
level of bona fide services provided by Executive to Orion and its 409A affiliates
permanently decreases to a level of twenty percent (20%) or less of the level of

6

 

services rendered by Executive, on average, during the immediately preceding 12 months of
employment.

          (iii) If, following Executive’s termination of employment, Executive continues to
provide services to the Company or a 409A Affiliate in a capacity other than as an employee,
Executive will not be deemed to have Separated from Service as long as Executive is
providing bona fide services at a rate that is greater than twenty percent (20%) of the
level of services rendered by Executive, on average, during the immediately preceding 12
months of service.

     (m) “Severance Payment” shall mean the Executive’s Base Salary at the time of the
Termination Date plus the average of the annual bonuses earned by the Executive with respect
to each of the three completed fiscal years of the Company preceding the year in which the
Termination Date occurs (or such lesser number of fiscal years for which the Executive was
employed by the Company, with any partial year’s bonus being annualized with respect to such
fiscal year) multiplied by the severance multiplier set forth above; provided that if
Executive’s Termination Date occurs on or following a Change of Control, the multiplier
described above shall be increased to the post-Change of Control severance multiplier set
forth above and any reduction in Executive’s Base Salary since the date of the Change of
Control shall be ignored.

     (n) “Successor” shall mean the person to which this Agreement is assigned upon a Sale of
Business within the meaning of Section 10.

     (o) “Termination Date” shall mean the date of the Executive’s termination of employment
from the Company, as further described in Section 4.

     3. Employment of Executive

     (a) Position.

     (i) Executive shall serve in the position set forth above in a full-time
capacity. In such position, Executive shall have such duties and authority as is
customarily associated with such position and shall have such other titles and
duties, consistent with Executive’s position, as may be assigned from time to time
by the Board.

     (ii) Executive will devote Executive’s full business time and best efforts to
the performance of Executive’s duties hereunder and will not engage in any other
business, profession or occupation for compensation or otherwise which would
conflict or interfere with the rendition of such services either directly or
indirectly, without the prior written consent of the Board; provided that nothing
herein shall preclude Executive, subject to the prior approval of the Board, from
accepting appointment to or continue to serve on any board of directors or trustees
of any business organization or any charitable organization; further provided in
each case, and in the aggregate, that such activities do not conflict or interfere
with the performance of Executive’s duties hereunder or conflict with Section 7.

     (b) Base Salary. Orion shall pay Executive a Base Salary at the respective annual rates
set forth above for Fiscal Year 2008 and Fiscal Year 2009, payable in regular installments
in accordance with the Company’s usual payroll practices. Executive shall

7

 

be entitled to
such increases in Executive’s base salary, if any, as may be determined from time to time by
the Board.

     (c) Bonus Incentives. Executive shall be entitled to participate in such annual and/or
long-term cash and equity incentive plans and programs of Orion as are generally provided to
the senior executives of Orion. On and after a Change of Control, to assure that Executive
will have an opportunity to earn incentive compensation, the Executive shall be included in
a bonus plan of the Employer which shall satisfy the standards described below (such plan,
the “Bonus Plan”). Bonuses under the Bonus Plan shall be payable with respect to achieving
such financial or other goals reasonably related to the business of the Company as the
Company shall establish (the “Goals”), all of which Goals shall be attainable, prior to the
end of the post-Change of Control renewal period (as set forth above), with approximately
the same degree of probability as the most attainable goals under the Company’s bonus plan
or plans as in effect at any time during the 180-day period immediately prior to the Change
of Control (whether one or more, the “Company Bonus Plan”) and in view of the Company’s
existing and projected financial and business circumstances applicable at the time. The
amount of the bonus (the “Bonus Amount”) that Executive is eligible to earn under the Bonus
Plan shall be no less than 100% of the Executive’s target award provided in such Company
Bonus Plan (such bonus amount herein referred to as the “Targeted Bonus”), and in the event
the Goals are not achieved such that the entire Targeted Bonus is not payable, the Bonus
Plan shall provide for a payment of a Bonus Amount equal to a portion of the Targeted Bonus
reasonably related to that portion of the Goals which were achieved. Payment of the Bonus
Amount shall not be affected by any circumstance occurring subsequent to the end of the
post-Change of Control renewal period, including termination of Executive’s employment.

     (d) Employee Benefits. Executive shall be entitled to participate in the Company’s
employee benefit plans (other than annual and/or long-term incentive programs, which are
addressed in subsection (c)) as in effect from time to time on the same basis as those
benefits are generally made available to other senior executives of Orion. On and after a
Change of Control, Executive shall be included: (i) to the extent eligible thereunder (which
eligibility shall not be conditioned on Executive’s salary grade or on any other requirement
which excludes persons of comparable status to the Executive unless such exclusion was in
effect for such plan or an equivalent plan immediately prior to the Change in Control of the
Company), in any and all plans providing benefits for the Company’s salaried employees in
general (including but not limited to group life insurance, hospitalization, medical,
dental, and long-term disability plans) and (ii) in plans provided to executives of the
Company of comparable status and position to Executive (including but not limited to
deferred compensation, split-dollar life insurance, supplemental retirement, stock option,
stock appreciation, stock bonus, cash bonus and similar or comparable plans);
provided, that, in no event shall the aggregate level of benefits under the
plans described in clause (i) and the plans described in clause (ii), respectively, in which
Executive is included be less than the aggregate level of benefits under plans of the
Company of the type referred to in such clause, respectively, in which Executive was
participating immediately prior to the Change in Control.

     (e) Business Expenses. The reasonable business expenses incurred by Executive in the
performance of Executive’s duties hereunder shall be reimbursed by the Company in accordance
with Company policies.

8

 

     (f) Other Perquisites. Executive shall be entitled to receive the other benefits and
perquisites set forth in Exhibit A.

          4. Termination of Employment. Executive’s employment with the Company will terminate
during the term of the Agreement, and this Agreement will terminate on the date of such
termination, as follows:

     (a) Executive’s employment will terminate upon Executive’s death.

     (b) If Executive is Disabled, and if within thirty (30) days after Orion notifies the
Executive in writing that it intends to terminate the Executive’s employment, the Executive
shall not have returned to the performance of the Executive’s duties hereunder on a
full-time basis, Orion may terminate the Executive’s employment, effective immediately
following the end of such thirty-day period.

     (c) Orion may terminate Executive’s employment with or without Cause (other than as a
result of Disability which is governed by subsection (b)) by providing written notice to
Executive that indicates in reasonable detail the facts and circumstances alleged to provide
a basis for such termination. If the termination is without Cause, Executive’s employment
will terminate on the date specified in the written notice of termination. If the
termination is for Cause, the Executive shall have thirty (30) days from the date the
written notice is provided, or such longer period as Orion may determine to be appropriate,
to cure any conduct or act, if curable, alleged to provide grounds for termination of
Executive’s employment for Cause. If the alleged conduct or act constituting Cause is not
curable, Executive’s employment will terminate on the date specified in the written notice
of termination. If the alleged conduct or act constituting Cause is curable but Executive
does not cure such conduct or act within the specified time period, Executive’s employment
will terminate on the date immediately following the end of the cure period.
Notwithstanding the foregoing, a determination of Cause shall only be made in good faith by
the Board, and after a Change of Control, by the Board of Directors of the Successor, which
may terminate Executive for Cause only after providing Executive (i) written notice as set
forth above, (ii) the opportunity to appear before such board and provide rebuttal to such
proposed termination, and (iii) written notice following such appearance confirming such
termination and certifying that the decision to terminate Executive for Cause was approved
in good faith by at least sixty-six percent (66%) of the members of such board, excluding
Executive. Unless otherwise directed by Orion, from and after the date of the written
notice of proposed termination, Executive shall be relieved of his or her duties and
responsibilities and shall be considered to be on a paid leave of absence pending any final
action by the Board or the Board of Directors of the Successor confirming such proposed
termination.

     (d) Executive may terminate his or her employment for or without Good Reason by
providing written notice of termination to Orion that indicates in reasonable detail the
facts and circumstances alleged to provide a basis for such termination. If Executive is
alleging a termination for Good Reason, Executive must provide written notice to Orion of
the existence of the condition constituting Good Reason within ninety (90) days of the
initial existence of such condition, and Orion must have a period of at least thirty (30)
days following receipt of such notice to cure such condition. If such condition is not
cured by Orion within such thirty-day period, Executive’s termination of

9

 

employment from the
Company shall be effective on the date immediately following the end of such cure period.

5. Payments upon Termination.

     (a) Entitlement to Severance. Subject to the other terms and conditions of this
Agreement, Executive shall be entitled to the Accrued Benefits, and to the severance
benefits described in subsection (c), in either of the following circumstances while this
Agreement is in effect:

     (i) Executive’s employment is terminated by Orion without Cause, except in the
case of death or Disability; or

     (ii) Executive terminates his or her employment with the Company for Good
Reason.

If Executive dies after receiving a notice by Orion that Executive is being terminated
without Cause, or after providing notice of termination for Good Reason, the Executive’s
estate, heirs and beneficiaries shall be entitled to the Accrued Benefits and the severance
benefits described in subsection (c) at the same time such amounts would have been paid or
benefits provided to Executive had he or she lived.

     (b) General Release Requirement. As an additional prerequisite for receipt of the
severance benefits described in subsection (c), Executive must execute, deliver to Orion,
and not revoke (to the extent Executive is allowed to do so) a General Release.

     (c) Severance Benefits; Timing and Form of Payment. Subject to the limitations imposed
by Section 6, if Executive is entitled to severance benefits, then:

     (i) Company shall pay Executive the Severance Payment in a lump sum within ten
(10) days following the Executive’s Separation from Service, or if later, the date
on which the General Release is no longer revocable, or if later, the date on which
the amount payable under Section 6 is determined, but in no event may be payment be
made more than 21/2 months after the year in which Executive’s Separation from Service
occurs;

     (ii) At the same time that the Severance Payment is made, Company shall pay
Executive a lump sum amount equal to the Executive’s annual target cash bonus
opportunity (if any) as established by the Board or the Compensation Committee of
the Board for the fiscal year in which the Separation from Service occurs,
multiplied by a fraction, the numerator of which is the number of days that have
elapsed during the annual performance period to the date of the Executive’s
Separation from Service and the denominator of which is 365; and

     (iii) Executive shall be entitled to pay premiums for COBRA continuation
coverage for the length of such coverage at the same rate as is being charged to
active employees for similar coverage.

All payments shall be subject to payroll taxes and other withholdings in accordance with the
Company’s (or the applicable employer of record’s) standard payroll practices and applicable
law.

10

 

     (d) Other Termination of Employment. If Executive’s employment terminates for any
reason other than those described in subsection (a), the Executive (or the Executive’s
estate in the event of his or her death), shall be entitled to receive only the Accrued
Benefits. Executive must be terminated for Cause pursuant to and in accordance with Section
4(c) of this Agreement in order for the consequences of such a Cause termination to apply to
Executive under any stock option or similar equity award agreement with the Company to which
Executive is then a party. The Company’s obligations under this Section 5 shall survive the
termination of this Agreement.

          6. Limitations on Severance Payments and Benefits. Notwithstanding any other
provision of this Agreement, if any portion of the Severance Payment or any other payment under
this Agreement, or under any other agreement with or plan of the Company (in the aggregate “Total
Payments”), would constitute an “excess parachute payment,” then the Total Payments to be made to
Executive shall be reduced such that the value of the aggregate Total Payments that Executive
is entitled to receive shall be One Dollar ($1) less than the maximum amount which Executive may
receive without becoming subject to the tax imposed by Code Section 4999 or which the Company may
pay without loss of deduction under Code Section 280G(a); provided that the foregoing reduction in
the amount of Total Payments shall not apply if the After-Tax Value to Executive of the Total
Payments prior to reduction in accordance herewith is greater than the After-Tax Value to Executive
if Total Payments are reduced in accordance herewith. For purposes of this Agreement, the terms
“excess parachute payment” and “parachute payments” shall have the meanings assigned to them in
Code Section 280G, and such “parachute payments” shall be valued as provided therein. Present
value for purposes of this Agreement shall be calculated in accordance with Code Section
1274(b)(2). Within twenty (20) business days following delivery of the notice of termination or
notice by Orion to Executive of its belief that there is a payment or benefit due Executive that
will result in an excess parachute payment as defined in Code Section 280G, Executive and Orion, at
Orion’s expense, shall obtain the opinion (which need not be unqualified) of nationally recognized
tax counsel selected by Orion’s independent auditors and acceptable to Executive in Executive’s
sole discretion, which opinion sets forth: (A) the amount of the Base Period Income, (B) the amount
and present value of Total Payments, (C) the amount and present value of any excess parachute
payments without regard to the limitations of this Section 6, (D) the After-Tax Value of the Total
Payments if the reduction in Total Payments contemplated under this Section 6 did not apply, and
(E) the After-Tax Value of the Total Payments taking into account the reduction in Total Payments
contemplated under this Section 6. As used in this Section 6, the term “Base Period Income” means
an amount equal to Executive’s “annualized includible compensation for the base period” as defined
in Code Section 280G(d)(1). For purposes of such opinion, the value of any noncash benefits or any
deferred payment or benefit shall be determined by Orion’s independent auditors in accordance with
the principles of Code Sections 280G(d)(3) and (4), which determination shall be evidenced in a
certificate of such auditors addressed to Orion and Executive. For purposes of determining the
After-Tax Value of Total Payments, Executive shall be deemed to pay federal income taxes and
employment taxes at the highest marginal rate of federal income and employment taxation in the
calendar year in which the Termination Payment is to be made and state and local income taxes at
the highest marginal rates of taxation in the state and locality of Executive’s domicile for income
tax purposes on the date the Termination Payment is to be made, net of the maximum reduction in
federal income taxes that may be obtained from deduction of such state and local taxes. Such
opinion shall be dated as of the Termination Date and addressed to Orion and Executive and shall be
binding upon the Company and Executive. If such opinion determines that there would be an excess
parachute payment and

11

 

that the After-Tax Value of the Total Payments taking into account the
reduction contemplated under this Section is greater than the After-Tax Value of the Total Payments
if the reduction in Total Payments contemplated under this Section did not apply, then the
Termination Payment hereunder or any other payment determined by such counsel to be includible in
Total Payments shall be reduced or eliminated as specified by Executive in writing delivered to
Orion within five business days of Executive’s receipt of such opinion or, if Executive fails to so
notify Orion, then as Orion shall reasonably determine, so that under the bases of calculations set
forth in such opinion there will be no excess parachute payment. If such legal counsel so requests
in connection with the opinion required by this Section, Executive and Orion shall obtain, at
Orion’s expense, and the legal counsel may rely on in providing the opinion, the advice of a firm
of recognized executive compensation consultants as to the reasonableness of any item of
compensation to be received by Executive. Notwithstanding the foregoing, the provisions of this
Section 6, including the calculations, notices and opinions provided for herein, shall be based
upon the conclusive presumption that the following are reasonable: (1) the compensation and
benefits provided for in Section 3 and (2) any other compensation, including but not limited to the
Accrued Benefits, earned prior to the date of Executive’s Separation from Service by the Executive
pursuant to the Company’s compensation programs if such payments would have been made in the future
in any event, even though the timing of such payment is triggered by the Change in Control or the
Executive’s Separation from Service. If the provisions of Code Sections 280G and 4999 are repealed
without succession, then this Section 6 shall be of no further force or effect.

          7. Covenants by Executive.

     (a) Confidentiality and Non-Disclosure. During Executive’s employment with the Company
and for a period of two years following Executive’s Separation from Service, he or she
agrees that he or she will not, except in furtherance of the business of the Company,
disclose, furnish, or make available to any person or use for the benefit of himself or
herself or any other person any confidential or proprietary information or data of the
Company including, but not limited to, trade secrets, customer and supplier lists, pricing
policies, operational methods, marketing plans or strategies, product development techniques
or plans, business acquisition or disposition plans, new personnel employment plans, methods
of manufacture, technical process, and formulae, designs and design projects, inventions and
research projects and financial budgets and forecasts except (i) information which at the
time is available to others in the business or generally known to the public other than as a
result of disclosure by Executive not permitted hereunder, and (ii) when required to do so
by a court of competent jurisdiction, by any governmental agency or by any administrative,
legislative or regulatory body; provided that in this instance Executive shall make
reasonable efforts to inform the Company of any such request prior to any disclosure so as
to permit the Company a meaningful opportunity to seek a protective order or similar
adjudication. Upon termination of his or her employment with the Company, Executive will
immediately return to the Company all written or electronically stored confidential or
proprietary information in whatever format it is contained.

          (b) Non-Competition/Non-Solicitation.

     (i) During Executive’s employment with the Company and for a period of two years
following Executive’s Separation from Service, Executive agrees not to directly or
indirectly engage, or assist any business or entity, in

12

 

Competitive Business
Activity in any capacity, including without limitation as an employee, officer, or
director of, or consultant or advisor to, any person or entity engaged directly or
indirectly in a business which engages in Competitive Business Activity, in North
America or anywhere that Orion or its Successor does business at the time of
Executive’s termination of employment, without the written consent of the Board.

     (ii) During Executive’s employment with the Company and for a period of two
years following Executive’s Separation from Service, Executive agrees not to, in any
form or manner, directly or indirectly, on his or her own behalf or in combination
with others (1) solicit, induce or influence any customer, supplier, lender, lessor
or any other person with a business relationship with the Company to discontinue or
reduce the extent of such business relationship, or (2) recruit, solicit or
otherwise induce or influence any employee of the Company to discontinue their
employment with the Company.

13

 

(c) Disclosure and Assignment to the Company of Inventions and Innovations.

     (i) For purposes of this Agreement, the term “Intellectual Property Work
Product” means all writings, documents, inventions, ideas, drawings, artwork,
research, processes, procedures, techniques, designs, technologies, computer
hardware or software, programming code, templates, forms, formulas, discoveries,
products, marketing and business plans and all improvements, know-how, data, rights
and claims related to those items and all work product of any type, whether or not
copyrightable or patentable, which Executive makes, conceives, discovers or
develops, or has made, conceived, discovered or developed at any time during the
term of this Agreement or during the term of the 2005 Employment Agreement.

     (ii) Executive agrees to disclose and assign to the Company as the Company’s
exclusive property, all Intellectual Property Work Product and all other inventions
and technical or business innovations, including but not limited to all patentable
and copyrightable subject matter (collectively, the “Innovations”) developed,
discovered, made, authored or conceived by Executive solely or jointly with others
during the period of Executive’s employment, including during Executive’s employment
prior to the date of this Agreement, (1) that are along the lines of the business,
work or investigations of the Company to which Executive’s employment relates or as
to which Executive may receive information due to Executive’s employment with the
Company, or (2) that result from or are suggested by any work which Executive may do
for the Company or (3) that are otherwise made through the use of Company time,
facilities or materials. To the extent any of the Innovations is copyrightable,
each such Innovation shall be considered a “work for hire.”

     (iii) Executive agrees to execute all necessary papers and otherwise provide
proper assistance (at the Company’s expense), during and subsequent to Executive’s
employment, to enable the Company to obtain for itself or its nominees, all right,
title, and interest in and to patents, copyrights, trademarks or other legal
protection for such Innovations in any and all countries.

     (iv) Executive agrees to make and maintain for the Company adequate and current
written records of all such Innovations;

     (v) Upon any termination of Executive’s employment, Executive agrees to deliver
to the Company promptly all items which belong to the Company or which by their
nature are for the use of Company employees only, including, without limitation, all
written and other materials which are of a secret or confidential nature relating to
the business of the Company.

     (vi) In the event Company is unable for any reason whatsoever to secure
Executive’s signature to any lawful and necessary documents required, including
those necessary for the assignment of, application for, or prosecution of any United
States or foreign application for letters patent or copyright for any Innovation,
Executive hereby irrevocably designates and appoints Company and its duly authorized
officers and agents as Executive’s agent and attorney-in-fact,

14

 

to act for and in
Executive’s behalf and stead to execute and file any such applications and to do all
other lawfully permitted acts to further the assignment, prosecution, and issuance
of letters patent or registration of copyright thereon with the same legal force and
effect as if executed by Executive. Executive hereby waives and quitclaims to
Company any and all claims, of any nature
whatsoever, which Executive may now have or may hereafter have for infringement
of any patent or copyright resulting from any such application.

     (d) Remedies Not Exclusive. In the event that Executive breaches any terms of this
Section 7, Executive acknowledges and agrees that said breach may result in the immediate
and irreparable harm to the business and goodwill of the Company and that damages, if any,
and remedies of law for such breach may be inadequate and indeterminable. The Company, upon
Executive’s breach of this Section 7, shall therefore be entitled (in addition to and
without limiting any other remedies that the Company may seek under this Agreement or
otherwise at law or in equity) to (1) seek from any court of competent jurisdiction
equitable relief by way of temporary or permanent injunction and without being required to
post a bond, to restrain any violation of this Section 7, and for such further relief as the
court may deem just or proper in law or equity, and (2) in the event that the Company shall
prevail, its reasonable attorneys fees and costs and other expenses in enforcing its rights
under this Section 7.

     (e) Severability of Provisions. If any restriction, limitation, or provision of this
Section 7 is deemed to be unreasonable, onerous, or unduly restrictive by a court of
competent jurisdiction, it shall not be stricken in its entirety and held totally void and
unenforceable, but shall remain effective to the maximum extent possible within the bounds
of the law. If any phrase, clause or provision of this Section 7 is declared invalid or
unenforceable by a court of competent jurisdiction, such phrase, clause, or provision shall
be deemed severed from this Section 7, but will not affect any other provision of this
Section 7, which shall otherwise remain in full force and effect. The provisions of this
Section 7 are each declared to be separate and distinct covenants by Executive.

          8. Notice. Any notice, request, demand or other communication required or permitted
herein will be deemed to be properly given when personally served in writing or when deposited in
the United States mail, postage prepaid, addressed to Executive at the address appearing at the end
of this Agreement and to the Company with attention to the Chief Executive Officer of Orion and the
General Counsel of Orion. Either party may change its address by written notice in accordance with
this paragraph.

          9. Set Off; Mitigation. The Company’s obligation to pay Executive the amounts and to
provide the benefits hereunder shall be subject to set-off, counterclaim or recoupment of amounts
owed by Executive to the Company. However, Executive shall not be required to mitigate the amount
of any payment provided for pursuant to this Agreement by seeking other employment or otherwise.

          10. Benefit of Agreement. This Agreement shall inure to the benefit of and be binding
upon the parties hereto and their respective executors, administrators, successors and assigns. If
Orion experiences a Change of Control, or otherwise sells, assigns or transfers all or
substantially all of its business and assets to any person or if Orion merges into or consolidates
or otherwise combines (where Orion does not survive such combination) with any person (any such
event, a “Sale of Business”), then Orion shall assign all of its right, title and interest in this

15

 

Agreement as of the date of such event to such person, and Orion shall cause such person, by
written agreement in form and substance reasonably satisfactory to Executive, to expressly assume
and agree to perform from and after the date of such assignment all of the terms, conditions and
provisions imposed by this Agreement upon the Company. Failure of Orion to obtain such agreement
prior to the effective date of such Sale of Business shall be a breach of this Agreement
constituting “Good Reason” hereunder, except that for purposes of implementing the foregoing the
date upon which such Sale of Business becomes effective shall be the Termination Date. In case of
such assignment by Orion and of assumption and agreement by such person, as used in this Agreement,
“Orion” shall thereafter mean the person which executes and delivers
the agreement provided for in this Section 10 or which otherwise becomes bound by all the
terms and provisions of this Agreement by operation of law, and this Agreement shall inure to the
benefit of, and be enforceable by, such person. Executive shall, in his or her discretion, be
entitled to proceed against any or all of such persons, any person which theretofore was such a
successor to Orion, and Orion (as so defined) in any action to enforce any rights of Executive
hereunder. Except as provided in this Section 10, this Agreement shall not be assignable by Orion.
This Agreement shall not be terminated by the voluntary or involuntary dissolution of Orion.

          11. Arbitration. Any controversy or claim arising out of or relating to this
Agreement or the breach of this Agreement that cannot be mutually resolved by the Executive and the
Company, including any dispute as to the calculation of the Executive’s Benefits, Base Salary,
Bonus Amount or any Severance Payment hereunder, shall be submitted to arbitration in Milwaukee,
Wisconsin, in accordance with the procedures of the American Arbitration Association. The
determination of the arbitrator shall be conclusive and binding on the Company and the Executive,
and judgment may be entered on the arbitrator’s award in any court having jurisdiction.

          12. Applicable Law and Jurisdiction. This Agreement is to be governed by and
construed under the laws of the United States and of the State of Wisconsin without resort to
Wisconsin’s choice of law rules. Each party hereby agrees that the forum and venue for any legal
or equitable action or proceeding arising out of, or in connection with, this Agreement will lie in
the appropriate federal or state courts in the State of Wisconsin and specifically waives any and
all objections to such jurisdiction and venue.

          13. Captions and Paragraph Headings. Captions and paragraph headings used herein are
for convenience only and are not a part of this Agreement and will not be used in construing it.

          14. Invalid Provisions. Subject to Section 7(e), should any provision of this
Agreement for any reason be declared invalid, void, or unenforceable by a court of competent
jurisdiction, the validity and binding effect of any remaining portion will not be affected, and
the remaining portions of this Agreement will remain in full force and effect as if this Agreement
had been executed with said provision eliminated.

          15. No Waiver. The failure of a party to insist upon strict adherence to any term of
this Agreement on any occasion shall not be considered a waiver of such party’s rights or deprive
such party of the right thereafter to insist upon strict adherence to that term or any other term
of this Agreement.

16

 

          16. Entire Agreement. This Agreement contains the entire agreement of the parties
with respect to the subject matter of this Agreement except where other agreements are specifically
noted, adopted, or incorporated by reference. This Agreement otherwise supersedes any and all
other agreements (including with respect to the definition of Cause and the process for Cause
termination, any stock option or similar equity award agreements with the Company to which
Executive may now or hereafter be a party), either oral or in writing, between the parties hereto
with respect to the employment of Executive by Company, except for the Intellectual Property
Assignment Agreements to the extent not inconsistent with the provisions of this Agreement. All
such agreements shall be void and of no effect. Each party to this Agreement acknowledges that no
representations, inducements, promises, or agreements, oral or otherwise, have been made by any
party, or anyone acting on behalf of any party, which are not embodied herein, and that no other
agreement, statement, or promise not contained in this Agreement will be valid or binding.

          17. Modification. This Agreement may not be modified or amended by oral agreement,
but only by an agreement in writing signed by Orion and Executive.

          18. Counterparts. This Agreement may be signed in counterparts, each of which shall
be an original, with the same effect as if the signatures thereto and hereto were upon the same
instrument.

EXECUTIVE

	 	 	 
	/s/ Neal R. Verfuerth
 

	 	 
	Signature
	 	 
	 
	 	 
	Neal R. Verfuerth
 

	 	 
	Printed Name
	 	 
	 
	 	 
	April 14, 2008
 

	 	 
	Date
	 	 

ORION ENERGY SYSTEMS, INC.

	 	 	 	 	 
	By:

	 	/s/ Thomas A. Quadracci     
	 	 
	 

	 	 	 	 
	Name:

	 	Thomas A. Quadracci	 	 
	 

	 	 	 	 
	Title:

	 	Chairman	 	 
	 

	 	 	 	 

17

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