Document:

NEW ENGLAND EXECUTIVE PARK
                                 BUILDING EIGHT
                            BURLINGTON, MASSACHUSETTS

                             OFFICE LEASE AGREEMENT

                                     BETWEEN

   MA-NEW ENGLAND EXECUTIVE PARK, L.L.C., A DELAWARE LIMITED LIABILITY COMPANY
                                  ("LANDLORD")

                                       AND

                    UTIX GROUP, INC., A DELAWARE CORPORATION
                                   ("TENANT")

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                             OFFICE LEASE AGREEMENT

        THIS QFFICE LEASE AGREEMENT (The "LEASE") is made and entered into as of
the 14 day of September,  2004, by and between  MA-NEW ENGLAND  EXECUTIVE  PARK,
L.L.C., A DELAWARE LIMITED LIABILITY COMPANY  ("LANDLORD") and UTIX GROUP, INC.,
A DELAWARE  CORPORATION  ("TENANT").  The following exhibits and attachments are
incorporated into and made a part of the Lease:  EXHIBIT A (Outline and Location
of Premises), EXHIBIT B (Expenses and Taxes), EXHIBIT C (Work Letter), EXHIBIT D
(Commencement  Letter),  EXHIBIT E (Building Rules and  Regulations),  EXHIBIT F
(Additional   Provisions)  and  EXHIBIT  G  (Commencement  Date  Agreement  [for
recording]).

1.      BASIC LEASE INFORMATION.

        1.01    "BUILDING"  shall mean the building located at Eight New England
                Executive Park,  Burlington,  Massachusetts  01803, and commonly
                known as Eight New  England  Executive  Park.  "RENTABLE  SQUARE
                FOOTAGE OF THE BUILDING" is deemed to be 218,512 square feet.

        1.02    "PREMISES" shall mean the area shown on EXHIBIT A to this Lease.
                The Premises is located on the 1st floor and known as suite 140.
                If the  Premises  include one or more floors in their  entirety,
                all  corridors  and  restroom  facilities  located  on such full
                floor(s) shall be considered part of the Premises. The "RENTABLE
                SQUARE  FOOTAGE OF THE  PREMISES"  is deemed to be 3,911  square
                feet.  Landlord and Tenant stipulate and agree that the Rentable
                Square  Footage of the Building and the Rentable  Square Footage
                of the Premises are correct.

        1.03    "BASE RENT":

                MONTHS OF TERM            ANNUAL RATE               MONTHLY
                                        PER SQUARE FOOT            BASE RENT
                --------------          ---------------            ---------
                Months 1 - 62               $18.00                 $5,866.50

                Notwithstanding  anything  in this  Section of this Lease to the
                contrary,  so long as Tenant is not in default under this Lease,
                Tenant  shall be  entitled to an  abatement  of Base Rent in the
                amount of $5,866.50  per month for 2  consecutive  full calendar
                months of the Term,  beginning  with the 1st full calendar month
                of the Term (the "BASE RENT ABATEMENT PERIOD"). The total amount
                of Base Rent abated during the Base Rent Abatement  Period shall
                equal $11,733.00 (the "ABATED BASE RENT"). If Tenant defaults at
                any time during the Term and fails to cure such  default  within
                any  applicable  cure period  under this Lease,  all Abated Base
                Rent shall  immediately  become due and payable.  The payment by
                Tenant of the Abated  Base Rent in the event of a default  shall
                not limit or affect any of Landlord's other rights,  pursuant to
                this  Lease  or at  law  or in  equity.  During  the  Base  Rent
                Abatement  Period,  only  Base  Rent  shall be  abated,  and all
                Additional  Rent and other costs and charges  specified  in this
                Lease shall remain as due and payable pursuant to the provisions
                of this Lease.

        1.04    "TENANT'S PRO RATA SHARE": 1.7898%.

        1.05    "BASE  YEAR" for Taxes  (defined  in  EXHIBIT  B):  Fiscal  Year
                (defined  below)  2005  (e.g.,  July 1, 2004 to June 30,  2005);
                "BASE YEAR" for Expenses  (defined in EXHIBIT B):  calendar year
                2004.

                For purposes hereof,  "FISCAL YEAR" shall mean the Base Year for
                Taxes and each period of July 1 to June 30 thereafter.

        1.06    "TERM":  A period of 62  months.  Subject to Section 3, the Term
                shall  commence on September 1, 2004 (the  "COMMENCEMENT  DATE")
                and, unless  terminated early in accordance with this Lease, end
                on October 31, 2009 (the "TERMINATION  DATE").  In addition,  if
                Tenant is entitled to register or record a notice or  memorandum
                of this Lease  pursuant to the terms of Section  1.18,  Landlord
                and Tenant shall also execute and Tenant may register or record,
                as  appropriate,  at Tenant's cost and expense,  a  Commencement
                Date Agreement in the form attached as EXHIBIT G.

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        1.07    Allowance(s): None.

        1.08    "SECURITY  DEPOSIT":  $25,000.00,  as more  fully  described  in
                Section 6.

        1.09    "LETTER OF CREDIT": None.

        1.10    "GUARANTOR(S)":  As of the  date of  this  Lease,  there  are no
                Guarantors.

        1.11    "BROKER(S)": Nagog Associates.

        1.12    "PERMITTED USE": General office use.

        1.13    "NOTICE ADDRESS(ES)":

          Landlord:                              Tenant:
          MA-New England Executive Park, L.L.C.  UTIX Group, Inc.
          c/o Equity Office                      8 New England Executive Park
          100 Summer Street                      Suite 140
          Boston, Massachusetts 02110            Burlington, Massachusetts 01803
          Attention: Property Manager

                A copy of any  notices  to  Landlord  shall  be  sent to  Equity
                Office,  Two North  Riverside  Plaza,  Suite 2100,  Chicago,  IL
                60606, Attn: Boston Regional Counsel.

                A copy of any notices whereby  Landlord is notifying Tenant of a
                Tenant  default  under the  Lease,  or  notifying  Tenant of, or
                responding  to Tenant  with  respect  to, any  option  rights of
                Tenant under the Lease (as opposed to routine notices concerning
                the operation of the Building) shall be sent to:

                H. Scott Flegal, Esq.
                Flegal Law Office
                159 Main Street
                Nashua, New Hampshire 03060

        1.14    "BUSINESS  DAY(S)"  are  Monday  through  Friday  of each  week,
                exclusive  of New Year's  Day,  Presidents  Day,  Memorial  Day,
                Independence Day, Labor Day,  Thanksgiving Day and Christmas Day
                ("HOLIDAYS").  Landlord may designate  additional  Holidays that
                are commonly  recognized  by other office  buildings in the area
                where the Building is located. "BUILDING SERVICE HOURS" are 8:00
                A.M. to 6:00 P.M. on Business Days and 8:00 A.M. to 1:00 P.M. on
                Saturdays.

        1.15    "LANDLORD  WORK" means the work that  Landlord is  obligated  to
                perform in the Premises  pursuant to a separate  agreement  (the
                "WORK LETTER"), attached to this Lease as EXHIBIT C.

        1.16    "PROPERTY" means the Building and the parcel(s) of land on which
                it  is  located  and,  at  Landlord's  discretion,  the  parking
                facilities and other improvements,  if any, serving the Building
                and the parcel(s) of land on which they are located.

        1.17    Notwithstanding anything to the contrary contained in Section 12
                of the Lease, Landlord shall have the right to require Tenant to
                post a performance  or payment bond in connection  with any work
                or service  done or  purportedly  done by or for the  benefit of
                Tenant.  Tenant  acknowledges  and agrees  that all such work or
                service is being  performed  for the sole  benefit of Tenant and
                not for the benefit of Landlord.

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

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                Lease, and Tenant appoints Landlord its  attorney-in-fact in its
                name and behalf to execute the  instrument  if Tenant shall fail
                to execute and deliver the instrument after  Landlord's  request
                therefor within 10 days.

2.      LEASE GRANT.

        The Premises are hereby  leased to Tenant from  Landlord,  together with
the right to use any portions of the Property  that are  designated  by Landlord
for the common use of tenants and others (the "COMMON AREAS").

3.      ADJUSTMENT OF COMMENCEMENT DATE; POSSESSION.

        3.01 If  Landlord  is  required  to perform  Landlord  Work prior to the
Commencement  Date:  (a) the date set forth in Section 1.06 as the  Commencement
Date shall instead be defined as the "TARGET  COMMENCEMENT DATE"; (b) the actual
Commencement  Date shall be the date on which the Landlord Work is Substantially
Complete  (defined below);  and (c) the Termination Date will be the last day of
the Term as  determined  based upon the  actual  Commencement  Date.  Landlord's
failure to Substantially  Complete the Landlord Work by the Target  Commencement
Date shall not be a default by Landlord or otherwise  render Landlord liable for
damages. Promptly after the determination of the Commencement Date, Landlord and
Tenant shall enter into a commencement  letter agreement in the form attached as
EXHIBIT D. If the  Termination  Date does not fall on the last day of a calendar
month,  Landlord and Tenant may elect to adjust the Termination Date to the last
day of the  calendar  month in  which  Termination  Date  occurs  by the  mutual
execution of a commencement  letter agreement  setting forth such adjusted date.
The  Landlord  Work shall be deemed to be  "SUBSTANTIALLY  COMPLETE" on the date
that  all  Landlord  Work  has  been  performed,   other  than  any  details  of
construction,   mechanical   adjustment  or  any  other  similar   matter,   the
non-completion  of which does not materially  interfere with Tenant's use of the
Premises.  If Landlord is delayed in the  performance  of the Landlord Work as a
result of the acts or omissions of Tenant,  the Tenant Related Parties  (defined
in Section 13) or their respective  contractors or vendors,  including,  without
limitation,  changes requested by Tenant to approved plans,  Tenant's failure to
comply with any of its obligations under this Lease, or the specification of any
materials or  equipment  with long lead times (a "TENANT  DELAY"),  the Landlord
Work  shall be deemed to be  Substantially  Complete  on the date that  Landlord
could reasonably have been expected to Substantially  Complete the Landlord Work
absent any Tenant Delay.

        3.02 Subject to Landlord's obligation, if any, to perform Landlord Work,
the  Premises  are  accepted by Tenant in "as is"  condition  and  configuration
without any  representations or warranties by Landlord.  By taking possession of
the Premises, Tenant agrees that the Premises are in good order and satisfactory
condition.  Landlord shall not be liable for a failure to deliver  possession of
the  Premises or any other space due to the holdover or unlawful  possession  of
such space by another party,  however  Landlord shall use reasonable  efforts to
obtain  possession of the space.  The  commencement  date for the space, in such
event,  shall be postponed  until the date Landlord  delivers  possession of the
Premises to Tenant free from occupancy by any party. If Tenant takes  possession
of the Premises before the  Commencement  Date, such possession shall be subject
to the terms and  conditions of this Lease and Tenant shall pay Rent (defined in
Section  4.01) to Landlord for each day of  possession  before the  Commencement
Date. However, except for the cost of services requested by Tenant (e.g. freight
elevator  usage),  Tenant  shall  not be  required  to pay  Rent for any days of
possession before the Commencement  Date during which Tenant,  with the approval
of Landlord, is in possession of the Premises for the sole purpose of performing
improvements or installing furniture, equipment or other personal property.

        3.03 Notwithstanding anything to the contrary contained herein, Landlord
and Tenant  acknowledge  and agree that the Premises shall be tendered to Tenant
with certain  furniture  and  equipment  (the  "FURNITURE")  of the prior tenant
remaining in the Premises.  Although  Landlord shall permit Tenant to utilize or
remove the  Furniture,  Landlord makes no  representation  or warranty as to the
ownership  of the  Furniture  and Tenant  shall  utilize  and/or  dispose of the
Furniture at Tenant's sole risk.  Tenant agrees to remove the Furniture from the
Premises on the earlier to occur of the  Termination  Date or the termination of
this Lease or Tenant's right to possession thereunder, at Tenant's sole cost and
expense,  and to bear the costs of any repairs or  restoration  to the  Premises
necessitated  by such  removal,  provided that if Tenant leaves any Furniture in
the  Premises,  Landlord  shall  have the right to  remove  and  dispose  of the
Furniture and Tenant shall  reimburse  Landlord for the cost of such removal and
disposal and any repairs or  restoration  to the Premises  necessitated  by such
removal and disposal. Tenant shall indemnify,  defend and hold Landlord harmless
from and against any

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and all claims,  liabilities,  damages or actions brought against or incurred by
Landlord by any parties claiming to have any interest in the Furniture.

4.      RENT.

        4.01 Tenant shall pay Landlord, without any setoff or deduction,  unless
expressly set forth in this Lease, all Base Rent and Additional Rent due for the
Term  (collectively  referred  to as "RENT").  "ADDITIONAL  RENT" means all sums
(exclusive  of Base Rent) that  Tenant is required  to pay  Landlord  under this
Lease.  Tenant shall pay and be liable for all rental,  sales and use taxes (but
excluding income taxes), if any, imposed upon or measured by Rent. Base Rent and
recurring monthly charges of Additional Rent shall be due and payable in advance
on the first day of each calendar month without notice or demand,  provided that
the  installment  of Base Rent for the 3rd full calendar  month of the Term, and
the first monthly  installment of Additional Rent for Expenses and Taxes,  shall
be payable upon the  execution of this Lease by Tenant.  All other items of Rent
shall be due and  payable  by  Tenant  on or before  30 days  after  billing  by
Landlord.  Rent shall be made  payable to the entity,  and sent to the  address,
Landlord  designates and shall be made by good and sufficient  check or by other
means acceptable to Landlord.  Tenant shall pay Landlord an  administration  fee
equal to 5% of all past due Rent,  provided  that Tenant  shall be entitled to a
grace period of 5 days for the first 2 late payments of Rent in a calendar year.
In addition,  past due Rent shall accrue  interest at 12% per annum.  Landlord's
acceptance of less than the correct amount of Rent shall be considered a payment
on account of the earliest  Rent due. Rent for any partial month during the Term
shall be prorated. No endorsement or statement on a check or letter accompanying
payment shall be considered an accord and satisfaction. Tenant's covenant to pay
Rent is independent of every other covenant in this Lease.

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

5.      COMPLIANCE WITH LAWS; USE.

        The Premises  shall be used for the  Permitted  Use and for no other use
whatsoever.  Tenant shall comply with all statutes,  codes, ordinances,  orders,
rules and regulations of any municipal or governmental  entity whether in effect
now  or  later,  including  the  Americans  with  Disabilities  Act  ("LAW(S)"),
regarding   the  operation  of  Tenant's   business  and  the  use,   condition,
configuration and occupancy of the Premises.  In addition,  Tenant shall, at its
sole cost and  expense,  promptly  comply with any Laws that relate to the "Base
Building" (defined below), but only to the extent such obligations are triggered
by  Tenant's  use of the  Premises,  other  than  for  general  office  use,  or
Alterations or  improvements  in the Premises  performed or requested by Tenant.
"BASE  BUILDING"  shall include the  structural  portions of the  Building,  the
public  restrooms and the Building  mechanical,  electrical and plumbing systems
and  equipment  located in the  internal  core of the  Building  on the floor or
floors on which the Premises are located. Tenant shall promptly provide Landlord
with copies of any notices it receives  regarding  an alleged  violation of Law.
Tenant shall comply with the rules and  regulations of the Building  attached as
EXHIBIT E and such other  reasonable  rules and regulations  adopted by Landlord
from  time to time,  including  rules and  regulations  for the  performance  of
Alterations (defined in Section 9).

6.      SECURITY DEPOSIT.

        The Security  Deposit,  if any,  shall be delivered to Landlord upon the
execution  of this Lease by Tenant and held by Landlord  without  liability  for
interest  (unless  required by Law) as security for the  performance of Tenant's
obligations. The Security Deposit is not an advance payment of Rent or a measure
of damages. Landlord may use all or a portion of the Security Deposit to satisfy
past due Rent or to cure any  Default  (defined  in Section  18) by  Tenant.  If
Landlord uses any portion of the Security Deposit,  Tenant shall,  within 5 days
after  demand,  restore the Security  Deposit to its original  amount.  Landlord
shall return any unapplied  portion of the Security  Deposit to Tenant within 45
days after the later to occur of: (a)  determination  of the final Rent due from
Tenant;  or (b) the later to occur of the  Termination  Date or the date  Tenant
surrenders the Premises to Landlord in compliance  with Section 25. Landlord may
assign the Security  Deposit to a successor or  transferee  and,  following  the
assignment,  Landlord  shall  have no  further  liability  for the return of the
Security  Deposit.  Landlord shall not be required to keep the Security  Deposit
separate from its other accounts.

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7.      BUILDING SERVICES.

        7.01 Landlord  shall furnish  Tenant with the  following  services:  (a)
water  for use in the  Base  Building  lavatories;  (b)  customary  heat and air
conditioning  in season during  Building  Service  Hours.  Tenant shall have the
right to receive HVAC service during hours other than Building  Service Hours by
paying Landlord's then standard charge for additional HVAC service and providing
such  prior  notice  as  is  reasonably  specified  by  Landlord;  (c)  standard
janitorial  service on Business Days; (d) Elevator  service;  (e) Electricity in
accordance  with the terms and  conditions in Section  7.02;  and (f) such other
services as Landlord reasonably  determines are necessary or appropriate for the
Property.

        7.02  Electricity  used by Tenant in the Premises  shall,  at Landlord's
option, be paid for by Tenant either:  (a) through inclusion in Expenses (except
as provided for excess  usage);  (b) by a separate  charge  payable by Tenant to
Landlord; or (c) by separate charge billed by the applicable utility company and
payable  directly by Tenant.  Without the consent of  Landlord,  Tenant's use of
electrical  service shall not exceed,  either in voltage,  rated  capacity,  use
beyond Building  Service Hours or overall load,  that which Landlord  reasonably
deems to be standard for the Building.  Landlord shall have the right to measure
electrical usage by commonly accepted  methods.  If it is determined that Tenant
is using  excess  electricity,  Tenant  shall pay  Landlord for the cost of such
excess electrical usage as Additional Rent.

        7.03 Landlord's failure to furnish, or any interruption, diminishment or
termination  of  services  due to the  application  of Laws,  the failure of any
equipment,  the performance of repairs,  improvements  or  alterations,  utility
interruptions or the occurrence of an event of Force Majeure (defined in Section
26.03)  (collectively  a "SERVICE  FAILURE") shall not render Landlord liable to
Tenant,  constitute a constructive eviction of Tenant, give rise to an abatement
of Rent,  nor relieve  Tenant  from the  obligation  to fulfill any  covenant or
agreement.  However, if the Premises, or a material portion of the Premises, are
made  untenantable  for a period in excess of 3  consecutive  Business Days as a
result of a Service Failure that is reasonably within the control of Landlord to
correct,  then  Tenant,  as its sole  remedy,  shall be  entitled  to receive an
abatement  of Rent  payable  hereunder  during the period  beginning  on the 4th
consecutive  Business  Day of the  Service  Failure  and  ending  on the day the
service  has been  restored.  If the  entire  Premises  have  not been  rendered
untenantable by the Service Failure,  the amount of abatement shall be equitably
prorated.

8.      LEASEHOLD IMPROVEMENTS.

        All  improvements  in and to the  Premises,  including  any  Alterations
(collectively,  "LEASEHOLD  IMPROVEMENTS") shall remain upon the Premises at the
end of the Term without  compensation to Tenant.  Landlord,  however, by written
notice to Tenant at least 30 days prior to the  Termination  Date,  may  require
Tenant,  at its  expense,  to remove (a) any Cable  (defined  in  Section  9.01)
installed  by or for  the  benefit  of  Tenant,  and (b)  any  Landlord  Work or
Alterations that, in Landlord's reasonable judgment,  are of a nature that would
require  removal and repair costs that are  materially  in excess of the removal
and repair costs  associated  with standard  office  improvements  (collectively
referred  to as  "REQUIRED  REMOVABLES").  Required  Removables  shall  include,
without  limitation,  internal  stairways,  raised  floors,  personal  baths and
showers,   vaults,   rolling  file  systems  and  structural   alterations   and
modifications.  The designated  Required  Removables  shall be removed by Tenant
before  the  Termination   Date.  Tenant  shall  repair  damage  caused  by  the
installation or removal of Required  Removables.  If Tenant fails to perform its
obligations  in a timely  manner,  Landlord  may  perform  such work at Tenant's
expense. Tenant, at the time it requests approval for a proposed Alteration, may
request in writing that  Landlord  advise Tenant  whether the  Alteration or any
portion of the Alteration is a Required Removable.  Within 10 days after receipt
of  Tenant's  request,  Landlord  shall  advise  Tenant in  writing  as to which
portions of the Alteration are Required Removables.

9.      REPAIRS AND ALTERATIONS.

        9.01 Tenant  shall  periodically  inspect the  Premises to identify  any
conditions that are dangerous or in need of maintenance or repair.  Tenant shall
promptly provide  Landlord with notice of any such conditions.  Tenant shall, at
its sole cost and expense,  perform all  maintenance and repairs to the Premises
that are not Landlord's  express  responsibility  under this Lease, and keep the
Premises  in good  condition  and  repair,  reasonable  wear and tear  excepted.
Tenant's repair and maintenance obligations include, without limitation, repairs
to: (a) floor covering;  (b) interior  partitions;  (c) doors;  (d) the interior
side of  demising  walls;  (e)  electronic,  phone and data  cabling and related
equipment  that  is  installed  by  or  for  the  exclusive  benefit  of  Tenant
(collectively,  "CABLE");  (f) supplemental air  conditioning  units,  kitchens,
including  hot water  heaters,  plumbing,  and  similar  facilities  exclusively
serving Tenant;

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and (g)  Alterations.  To the extent  Landlord is not  reimbursed  by  insurance
proceeds,  Tenant shall reimburse  Landlord for the cost of repairing  damage to
the  Building  caused by the acts of Tenant,  Tenant  Related  Parties and their
respective  contractors and vendors.  If Tenant fails to make any repairs to the
Premises for more than 15 days after notice from Landlord (although notice shall
not be required in an  emergency),  Landlord  may make the  repairs,  and Tenant
shall pay the reasonable  cost of the repairs,  together with an  administrative
charge in an amount equal to 10% of the cost of the repairs.

        9.02  Landlord  shall keep and maintain in good repair and working order
and perform maintenance upon the: (a) structural  elements of the Building;  (b)
mechanical (including HVAC),  electrical,  plumbing and fire/life safety systems
serving the Building in general; (c) Common Areas; (d) roof of the Building; (e)
exterior  windows of the  Building;  and (f)  elevators  serving  the  Building.
Landlord shall promptly make repairs for which Landlord is responsible.

        9.03  Tenant  shall  not  make   alterations,   repairs,   additions  or
improvements or install any Cable  (collectively  referred to as  "ALTERATIONS")
without first obtaining the written consent of Landlord in each instance,  which
consent  shall not be  unreasonably  withheld  or delayed.  However,  Landlord's
consent  shall not be required  for any  Alteration  that  satisfies  all of the
following criteria (a "COSMETIC  ALTERATION"):  (a) is of a cosmetic nature such
as painting, wallpapering, hanging pictures and installing carpeting; (b) is not
visible from the  exterior of the Premises or Building;  (c) will not affect the
Base Building; and (d) does not require work to be performed inside the walls or
above the ceiling of the Premises.  Cosmetic Alterations shall be subject to all
the other provisions of this Section 9.03. Prior to starting work,  Tenant shall
furnish Landlord with plans and specifications;  names of contractors reasonably
acceptable  to  Landlord   (provided   that  Landlord  may  designate   specific
contractors  with respect to Base  Building);  required  permits and  approvals;
evidence of contractor's  and  subcontractor's  insurance in amounts  reasonably
required  by Landlord  and naming  Landlord as an  additional  insured;  and any
security for performance in amounts reasonably required by Landlord.  Changes to
the  plans  and  specifications  must  also be  submitted  to  Landlord  for its
approval.  Alterations  shall be  constructed in a good and  workmanlike  manner
using  materials  of a quality  reasonably  approved by  Landlord.  Tenant shall
reimburse  Landlord for any sums paid by Landlord for third party examination of
Tenant's  plans for  non-Cosmetic  Alterations.  In  addition,  Tenant shall pay
Landlord a fee for Landlord's  oversight and  coordination  of any  non-Cosmetic
Alterations equal to 10% of the cost of the Alterations. Upon completion, Tenant
shall  furnish  "as-built"  plans  for  non-Cosmetic   Alterations,   completion
affidavits  and full  and  final  waivers  of lien.  Landlord's  approval  of an
Alteration shall not be deemed a representation  by Landlord that the Alteration
complies with Law.

10.     ENTRY BY LANDLORD.

        Landlord may enter the  Premises to inspect,  show or clean the Premises
or to perform or facilitate the performance of repairs, alterations or additions
to the  Premises or any portion of the  Building.  Except in  emergencies  or to
provide Building  services,  Landlord shall provide Tenant with reasonable prior
verbal  notice of entry  and  shall  use  reasonable  efforts  to  minimize  any
interference  with  Tenant's  use  of the  Premises.  If  reasonably  necessary,
Landlord  may  temporarily  close all or a portion  of the  Premises  to perform
repairs,  alterations and additions.  However,  except in emergencies,  Landlord
will not close the Premises if the work can  reasonably be completed on weekends
and after  Building  Service  Hours.  Entry by Landlord  shall not  constitute a
constructive eviction or entitle Tenant to an abatement or reduction of Rent.

11.     ASSIGNMENT AND SUBLETTING.

        11.01 Except in connection with a Permitted Transfer (defined in Section
11.04), Tenant shall not assign, sublease,  transfer or encumber any interest in
this  Lease  or  allow  any  third  party  to use any  portion  of the  Premises
(collectively or individually,  a "TRANSFER")  without the prior written consent
of Landlord,  which consent shall not be unreasonably  withheld,  conditioned or
delayed if Landlord does not exercise its recapture  rights under Section 11.02.
If the entity which controls the voting  shares/rights  of Tenant changes at any
time,  such change of ownership or control  shall  constitute a Transfer  unless
Tenant is an entity whose outstanding stock is listed on a recognized securities
exchange or if at least 80% of its voting stock is owned by another entity,  the
voting stock of which is so listed.  Any attempted Transfer in violation of this
Section is voidable by  Landlord.  In no event shall any  Transfer,  including a
Permitted  Transfer,  release or relieve Tenant from any  obligation  under this
Lease.

                                        6
<PAGE>

        11.02 Tenant shall provide  Landlord with  financial  statements for the
proposed transferee, a fully executed copy of the proposed assignment,  sublease
or other  Transfer  documentation  and such other  information  as Landlord  may
reasonably  request.  Within 15  Business  Days after  receipt  of the  required
information  and  documentation,  Landlord  shall  either:  (a)  consent  to the
Transfer by execution of a consent agreement in a form reasonably  designated by
Landlord; (b) reasonably refuse to consent to the Transfer in writing; or (c) in
the event of an  assignment  of this Lease or subletting of more than 20% of the
Rentable Area of the Premises for more than 50% of the remaining Term (excluding
unexercised  options),  recapture  the  portion of the  Premises  that Tenant is
proposing to Transfer. If Landlord exercises its right to recapture,  this Lease
shall  automatically  be amended (or terminated if the entire  Premises is being
assigned or sublet) to delete the applicable  portion of the Premises  effective
on the  proposed  effective  date of the  Transfer.  Tenant shall pay Landlord a
review fee of  $1,500.00  for  Landlord's  review of any  Permitted  Transfer or
requested Transfer.

        11.03 Tenant shall pay Landlord 50% of all rent and other  consideration
which  Tenant  receives as a result of a Transfer  that is in excess of the Rent
payable to Landlord  for the  portion of the  Premises  and Term  covered by the
Transfer. Tenant shall pay Landlord for Landlord's share of the excess within 30
days after Tenant's receipt of the excess. Tenant may deduct from the excess, on
a straight-line  basis, all reasonable and customary  expenses directly incurred
by Tenant  attributable to the Transfer.  If Tenant is in Default,  Landlord may
require that all sublease  payments be made directly to Landlord,  in which case
Tenant shall  receive a credit  against Rent in the amount of Tenant's  share of
payments received by Landlord.

        11.04 Tenant may assign this Lease to a successor to Tenant by purchase,
merger,  consolidation or reorganization (an "OWNERSHIP  CHANGE") or assign this
Lease or sublet all or a portion of the  Premises  to an  Affiliate  without the
consent of Landlord, provided that all of the following conditions are satisfied
(a "PERMITTED  TRANSFER"):  (a) Tenant is not in Default; (b) in the event of an
Ownership Change,  Tenant's  successor shall own substantially all of the assets
of Tenant and have a net worth which is at least equal to Tenant's  net worth as
of the day prior to the proposed  Ownership  Change;  (c) the Permitted Use does
not allow the Premises to be used for retail purposes; and (d) Tenant shall give
Landlord written notice at least 15 Business Days prior to the effective date of
the Permitted  Transfer.  Tenant's notice to Landlord shall include  information
and documentation evidencing the Permitted Transfer and showing that each of the
above  conditions  has  been  satisfied.  If  requested  by  Landlord,  Tenant's
successor  shall sign a commercially  reasonable  form of assumption  agreement.
"AFFILIATE"  shall mean an entity  controlled  by,  controlling  or under common
control with Tenant.

12.     LIENS.

        Tenant shall not permit  mechanics' or other liens to be placed upon the
Property, Premises or Tenant's leasehold interest in connection with any work or
service  done or  purportedly  done  by or for  the  benefit  of  Tenant  or its
transferees.  Tenant  shall give  Landlord  notice at least 15 days prior to the
commencement  of any work in the Premises to afford  Landlord  the  opportunity,
where  applicable,  to post and record  notices of  non-responsibility.  Tenant,
within  10 days of notice  from  Landlord,  shall  fully  discharge  any lien by
settlement,  by bonding or by insuring over the lien in the manner prescribed by
the  applicable  lien Law. If Tenant fails to do so,  Landlord may bond,  insure
over or otherwise  discharge the lien.  Tenant shall reimburse  Landlord for any
amount paid by Landlord,  including,  without limitation,  reasonable attorneys'
fees.

13.     INDEMNITY AND WAIVER OF CLAIMS.

        Tenant  hereby waives all claims  against and releases  Landlord and its
trustees, members, principals,  beneficiaries,  partners,  officers,  directors,
employees,  Mortgagees (defined in Section 23) and agents (the "LANDLORD RELATED
PARTIES")  from all  claims  for any  injury to or death of  persons,  damage to
property or business loss in any manner related to (a) Force  Majeure,  (b) acts
of third parties,  (c) the bursting or leaking of any tank, water closet,  drain
or other pipe, (d) the inadequacy or failure of any security services, personnel
or equipment,  or (e) any matter not within the reasonable  control of Landlord.
Except to the extent caused by the negligence or willful  misconduct of Landlord
or any  Landlord  Related  Parties,  Tenant  shall  indemnify,  defend  and hold
Landlord and Landlord Related Parties harmless against and from all liabilities,
obligations,  damages, penalties,  claims, actions, costs, charges and expenses,
including, without limitation, reasonable attorneys' fees and other professional
fees  (if and to the  extent  permitted  by Law)  (collectively  referred  to as
"LOSSES"),  which may be imposed upon,  incurred by or asserted against Landlord
or any of the Landlord  Related Parties by any third party and arising out of or
in connection with any damage or injury occurring in the

                                            7
<PAGE>

Premises or any acts or omissions  (including  violations of Law) of Tenant, the
Tenant Related Parties or any of Tenant's transferees, contractors or licensees.
Except to the extent caused by the negligence or willful misconduct of Tenant or
any Tenant Related Parties,  Landlord shall  indemnify,  defend and hold Tenant,
its trustees, members, principals, beneficiaries, partners, officers, directors,
employees and agents ("TENANT  RELATED  PARTIES")  harmless against and from all
Losses which may be imposed upon,  incurred by or asserted against Tenant or any
of the  Tenant  Related  Parties  by any third  party and  arising  out of or in
connection with the acts or omissions (including  violations of Law) of Landlord
or the Landlord Related Parties.

14.     INSURANCE.

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

15.     SUBROGATION.

        Landlord  and  Tenant  hereby  waive and shall  cause  their  respective
insurance carriers to waive any and all rights of recovery,  claims,  actions or
causes of action  against  the other  for any loss or  damage  with  respect  to
Tenant's Property,  Leasehold  Improvements,  the Building, the Premises, or any
contents thereof,  including rights,  claims, actions and causes of action based
on  negligence,  which loss or damage is (or would have been,  had the insurance
required by this Lease been carried) covered by insurance.

16.     CASUALTY DAMAGE.

        16.01 If all or any portion of the Premises becomes untenantable by fire
or other casualty to the Premises  (collectively a "CASUALTY"),  Landlord,  with
reasonable promptness,  shall cause a general contractor selected by Landlord to
provide  Landlord  and  Tenant  with a written  estimate  of the  amount of time
required using standard working methods to Substantially Complete the repair and
restoration of the premises and any common areas  necessary TO provide access to
the Premises ("COMPLETION ESTIMATE").  If the Completion Estimate indicates that
the  Premises or any Common Areas  necessary  to provide  access to the Premises
cannot be made  tenantable  within 210 days from the date the repair is started,
then either  party  shall have the right to  terminate  this Lease upon  written
notice to the other  within 10 days after  receipt of the  Completion  Estimate.
Tenant,  however,  shall  not have  the  right to  terminate  this  Lease if the
Casualty was caused by the negligence or intentional misconduct of Tenant or any
Tenant Related  Parties.  In addition,  Landlord,  by notice to Tenant within 90
days  after the date of the  Casualty,  shall have the right to  terminate  this
Lease if: (1) the Premises have been materially damaged and there is less than 2
years  of the Term  remaining  on the date of the  Casualty;  (2) any  Mortgagee
requires that the  insurance  proceeds be applied to the payment of the mortgage
debt; or (3) a material uninsured loss to the Building occurs.

        16.02 If this  Lease is not  terminated,  Landlord  shall  promptly  and
diligently,  subject to  reasonable  delays for  insurance  adjustment  or other
matters beyond Landlord's reasonable

                                       8
<PAGE>

control,  restore the Premises and Common Areas.  Such  restoration  shall be to
substantially the same condition that existed prior to the Casualty,  except for
modifications  required by Law or any other  modifications  to the Common  Areas
deemed desirable by Landlord. Upon notice from Landlord,  Tenant shall assign to
Landlord  (or to any  party  designated  by  Landlord)  all  property  insurance
proceeds  payable  to  Tenant  under  Tenant's  Insurance  with  respect  to any
Leasehold  Improvements  performed by or for the benefit of Tenant;  provided if
the estimated cost to repair such Leasehold  Improvements  exceeds the amount of
insurance  proceeds received by Landlord from Tenant's  insurance  carrier,  the
excess  cost of such  repairs  shall  be paid by  Tenant  to  Landlord  prior to
Landlord's  commencement of repairs. Within 15 days of demand, Tenant shall also
pay Landlord for any  additional  excess  costs that are  determined  during the
performance of the repairs.  Landlord shall not be liable for any  inconvenience
to Tenant, or injury to Tenant's business resulting in any way from the Casualty
or the repair thereof. Provided that Tenant is not in Default, during any period
of time that all or a material portion of the Premises is rendered  untenantable
as a result of a Casualty,  the Rent shall abate for the portion of the Premises
that is untenantable and not used by Tenant.

17.     CONDEMNATION.

        Either  party  may  terminate  this  Lease if any  material  part of the
Premises is taken or condemned for any public or quasi-public  use under Law, by
eminent domain or private purchase in lieu thereof (a "TAKING").  Landlord shall
also have the right to terminate  this Lease if there is a Taking of any portion
of the  Building  or  Property  which  would have a material  adverse  effect on
Landlord's  ability to profitably  operate the  remainder of the  Building.  The
terminating party shall provide written notice of termination to the other party
within 45 days after it first  receives  notice of the Taking.  The  termination
shall be effective on the date the physical taking occurs.  If this Lease is not
terminated,  Base  Rent and  Tenant's  Pro  Rata  Share  shall be  appropriately
adjusted to account for any  reduction in the square  footage of the Building or
Premises.  All  compensation  awarded  for a  Taking  shall be the  property  of
Landlord.  The right to receive compensation or proceeds are expressly waived by
Tenant,  however,  Tenant may file a separate  claim for  Tenant's  Property and
Tenant's reasonable  relocation expenses,  provided the filing of the claim does
not diminish the amount of Landlord's  award.  If only a part of the Premises is
subject to a Taking and this Lease is not terminated,  Landlord, with reasonable
diligence,  will  restore  the  remaining  portion of the  Premises as nearly as
practicable to the condition immediately prior to the Taking.

18.     EVENTS OF DEFAULT.

        Each of the  following  occurrences  shall be a "DEFAULT":  (a) Tenant's
failure to pay any portion of Rent when due, if the failure continues for 3 days
after written notice to Tenant ("MONETARY DEFAULT"); (b) Tenant's failure (other
than a  Monetary  Default)  to comply  with any term,  provision,  condition  or
covenant of this Lease, if the failure is not cured within 10 days after written
notice to  Tenant  provided,  however,  if  Tenant's  failure  to comply  cannot
reasonably be cured within 10 days, Tenant shall be allowed additional time (not
to exceed 60 days) as is  reasonably  necessary  to cure the  failure so long as
Tenant  begins  the cure  within  10 days  and  diligently  pursues  the cure to
completion;  (c) Tenant or any Guarantor becomes insolvent,  makes a transfer in
fraud of creditors, makes an assignment for the benefit of creditors,  admits in
writing its  inability  to pay its debts when due or forfeits or loses its right
to conduct  business;  (d) the leasehold estate is taken by process or operation
of Law;  (e) in the case of any ground floor or retail  Tenant,  Tenant does not
take possession of or abandons or vacates all or any portion of the Premises; or
(f) Tenant is in default beyond any notice and cure period under any other lease
or agreement  with  Landlord at the Building or Property.  If Landlord  provides
Tenant with notice of Tenant's failure to comply with any specific  provision of
this  Lease  on 3  separate  occasions  during  any 12  month  period,  Tenant's
subsequent  violation of such  provision  shall,  at  Landlord's  option,  be an
incurable  Default by Tenant.  All notices sent under this  Section  shall be in
satisfaction of, and not in addition to, notice required by Law.

19.     REMEDIES.

        19.01 Upon Default,  Landlord  shall have the right to pursue any one or
more of the following remedies:

                (a)     Terminate  this  Lease,   in  which  case  Tenant  shall
immediately surrender the Premises to Landlord. If Tenant fails to surrender the
Premises,  Landlord,  in compliance with Law, may enter upon and take possession
of the Premises and remove Tenant, Tenant's Property and any party occupying the
Premises.  Tenant  shall pay  Landlord,  on demand,  all past due Rent and other
losses and damages Landlord suffers as a result of Tenant's Default,  including,
without  limitation,  all Costs of Reletting  (defined below) and any deficiency
that may

                                            9
<PAGE>

arise from reletting or the failure to relet the Premises.  "COSTS OF RELETTING"
shall  include  all  reasonable  costs and  expenses  incurred  by  Landlord  in
reletting or attempting to relet the Premises,  including,  without  limitation,
legal fees,  brokerage  commissions,  the cost of  alterations  and the value of
other concessions or allowances granted to a new tenant.

                (b)     Terminate  Tenant's  right to possession of the Premises
and, in compliance  with Law, remove Tenant,  Tenant's  Property and any parties
occupying the  Premises.  Landlord may (but shall not be obligated to) relet all
or any part of the Premises,  without notice to Tenant,  for such period of time
and on such terms and conditions (which may include  concessions,  free rent and
work  allowances)  as  Landlord  in its  absolute  discretion  shall  determine.
Landlord may collect and receive all rents and other income from the  reletting.
Tenant  shall pay  Landlord on demand all past due Rent,  all Costs of Reletting
and any deficiency  arising from the reletting or failure to relet the Premises.
The re-entry or taking of possession  of the Premises  shall not be construed as
an election by Landlord to terminate this Lease.

19.02 In lieu of calculating damages under Section 19.01,  Landlord may elect to
receive  as  damages  the  sum of (a)  all  Rent  accrued  through  the  date of
termination  of this Lease or Tenant's  right to  possession,  and (b) an amount
equal to the total  Rent that  Tenant  would have been  required  to pay for the
remainder of the Term  discounted to present value,  minus the then present fair
rental  value  of  the  Premises  for  the  remainder  of  the  Term,  similarly
discounted,  after deducting all anticipated Costs of Reletting. If Tenant is in
Default of any of its nonmonetary  obligations  under the Lease,  Landlord shall
have the right to perform such obligations.  Tenant shall reimburse Landlord for
the cost of such performance upon demand together with an administrative  charge
equal to 10% of the cost of the work performed by Landlord.  The repossession or
re-entering  of all or any part of the Premises  shall not relieve Tenant of its
liabilities  and  obligations  under this Lease.  No right or remedy of Landlord
shall be exclusive of any other right or remedy.  Each right and remedy shall be
cumulative  and in addition  to any other  right and remedy now or  subsequently
available to Landlord at Law or in equity.

20.     LIMITATION OF LIABILITY.

        NOTWITHSTANDING  ANYTHING TO THE CONTRARY  CONTAINED IN THIS LEASE,  THE
LIABILITY OF LANDLORD  (AND OF ANY SUCCESSOR  LANDLORD)  SHALL BE LIMITED TO THE
LESSER OF (A) THE  INTEREST  OF  LANDLORD  IN THE  PROPERTY,  OR (B) THE  EQUITY
INTEREST  LANDLORD WOULD HAVE IN THE PROPERTY IF THE PROPERTY WERE ENCUMBERED BY
THIRD PARTY DEBT IN AN AMOUNT EQUAL TO 70% OF THE VALUE OF THE PROPERTY.  TENANT
SHALL LOOK SOLELY TO LANDLORD'S INTEREST IN THE PROPERTY FOR THE RECOVERY OF ANY
JUDGMENT  OR AWARD  AGAINST  LANDLORD OR ANY  LANDLORD  RELATED  PARTY.  NEITHER
LANDLORD  NOR ANY  LANDLORD  RELATED  PARTY SHALL BE  PERSONALLY  LIABLE FOR ANY
JUDGMENT OR DEFICIENCY,  AND IN NO EVENT SHALL LANDLORD OR ANY MORTGAGEES OR ANY
LANDLORD  RELATED  PARTY BE LIABLE TO TENANT FOR ANY LOST  PROFIT,  DAMAGE TO OR
LOSS OF  BUSINESS  OR ANY FORM OF SPECIAL,  INDIRECT  OR  CONSEQUENTIAL  DAMAGE.
BEFORE  FILING  SUIT FOR AN  ALLEGED  DEFAULT  BY  LANDLORD,  TENANT  SHALL GIVE
LANDLORD  AND THE  MORTGAGEE(S)  WHOM TENANT HAS BEEN  NOTIFIED  HOLD  MORTGAGES
(DEFINED IN SECTION 23 BELOW),  NOTICE AND  REASONABLE  TIME TO CURE THE ALLEGED
DEFAULT.

21.     RELOCATION.

        Landlord, at its expense, at any one time before or during the Term, may
relocate  Tenant from the Premises to space of  reasonably  comparable  size and
utility  ("RELOCATION  SPACE") within the Building or adjacent  buildings within
the same project upon 60 days' prior  written  notice to Tenant.  From and after
the date of the  relocation,  the Base Rent and Tenant's Pro Rata Share shall be
adjusted based on the rentable square footage of the Relocation Space.  Landlord
shall pay  Tenant's  reasonable  costs of  relocation,  including  all costs for
moving Tenant's furniture,  equipment,  supplies and other personal property, as
well as the cost of  printing  and  distributing  change of  address  notices to
Tenant's customers and one month's supply of stationery showing the new address.

22.     HOLDING OVER.

        If Tenant  fails to  surrender  all or any part of the  Premises  at the
termination of this Lease,  occupancy of the Premises after termination shall be
that of a tenancy at sufferance.  Tenant's occupancy shall be subject to all the
terms and provisions of this Lease, and Tenant shall pay

                                       10
<PAGE>

an amount (on a per month basis without  reduction for partial months during the
holdover)  equal to 150% of the sum of the Base Rent and Additional Rent due for
the period immediately  preceding the holdover. No holdover by Tenant or payment
by Tenant after the  termination  of this Lease shall be construed to extend the
Term or prevent  Landlord from immediate  recovery of possession of the Premises
by summary proceedings or otherwise. If Landlord is unable to deliver possession
of the Premises to a new tenant or to perform improvements for a new tenant as a
result of Tenant's  holdover and Tenant  fails to vacate the Premises  within 15
days after  notice from  Landlord,  Tenant  shall be liable for all damages that
Landlord suffers from the holdover.

23.     SUBORDINATION TO MORTGAGES; ESTOPPEL CERTIFICATE.

        Tenant accepts this Lease subject and  subordinate  to any  mortgage(s),
deed(s) of trust,  ground lease(s) or other lien(s) now or subsequently  arising
upon the Premises, the Building or the Property, and to renewals, modifications,
refinancings and extensions thereof (collectively  referred to as a "MORTGAGE").
The  party  having  the  benefit  of  a  Mortgage  shall  be  referred  to  as a
"MORTGAGEE".  This  clause  shall be  self-operative,  but upon  request  from a
Mortgagee,   Tenant  shall  execute  a  commercially  reasonable   subordination
agreement in favor of the Mortgagee.  As an alternative,  a Mortgagee shall have
the right at any time to subordinate  its Mortgage to this Lease.  Upon request,
Tenant,  without charge, shall attorn to any successor to Landlord's interest in
this Lease.  Landlord and Tenant shall each,  within 10 days after  receipt of a
written  request from the other,  execute and deliver a commercially  reasonable
estoppel  certificate to those parties as are reasonably  requested by the other
(including a Mortgagee  or  prospective  purchaser).  Without  limitation,  such
estoppel certificate may include a certification as to the status of this Lease,
the existence of any defaults and the amount of Rent that is due and payable.

24.     NOTICE.

        All demands, approvals, consents or notices (collectively referred to as
a "NOTICE")  shall be in writing and  delivered by hand or sent by registered or
certified  mail with return  receipt  requested or sent by overnight or same day
courier  service  at the  party's  respective  Notice  Address(es)  set forth in
Section 1. Each notice  shall be deemed to have been  received on the earlier to
occur of actual delivery or the date on which delivery is refused, or, if Tenant
has vacated the Premises or any other Notice Address of Tenant without providing
a new Notice Address,  3 days after notice is deposited in the U.S. mail or with
a courier service in the manner described above.  Either party may, at any time,
change its Notice  Address  (other than to a post office box  address) by giving
the other party written notice of the new address.

25.     SURRENDER OF PREMISES.

        At the termination of this Lease or Tenant's right of possession, Tenant
shall remove  Tenant's  Property from the  Premises,  and quit and surrender the
Premises to Landlord,  broom  clean,  and in good order,  condition  and repair,
ordinary  wear and  tear and  damage  which  Landlord  is  obligated  to  repair
hereunder excepted.  If Tenant fails to remove any of Tenant's Property within 2
days after termination of this Lease or Tenant's right to possession,  Landlord,
at Tenant's  sole cost and expense,  shall be entitled  (but not  obligated)  to
remove and store Tenant's  Property.  Landlord shall not be responsible  for the
value,  preservation  or  safekeeping  of Tenant's  Property.  Tenant  shall pay
Landlord,  upon demand,  the expenses and storage  charges  incurred.  If Tenant
fails to remove Tenant's  Property from the Premises or storage,  within 30 days
after  notice,  Landlord  may deem all or any part of  Tenant's  Property  to be
abandoned and title to Tenant's Property shall vest in Landlord.

26.     MISCELLANEOUS.

        26.01 This Lease shall be  interpreted  and enforced in accordance  with
the Laws of the state or  commonwealth  in which the  Building  is  located  and
Landlord and Tenant hereby  irrevocably  consent to the  jurisdiction and proper
venue of such  state or  commonwealth.  If any term or  provision  of this Lease
shall to any extent be void or unenforceable,  the remainder of this Lease shall
not be  affected.  If there is more than one Tenant or if Tenant is comprised of
more than one party or entity,  the  obligations  imposed  upon Tenant  shall be
joint and several  obligations of all the parties and entities,  and requests or
demands from any one person or entity  comprising Tenant shall be deemed to have
been made by all such persons or  entities.  Notices to any one person or entity
shall  be  deemed  to have  been  given  to all  persons  and  entities.  Tenant
represents and warrants to Landlord that each individual executing this Lease on
behalf of Tenant is  authorized  to do so on behalf of Tenant and that Tenant is
not, and the  entities or  individuals  constituting  Tenant or which may own or
control Tenant or which may be

                                       11
<PAGE>

owned or  controlled  by Tenant  are not,  among  the  individuals  or  entities
identified  on any list  compiled  pursuant  to  Executive  Order  13224 for the
purpose of identifying suspected terrorists.

        26.02 If either party  institutes a suit against the other for violation
of or to enforce any covenant,  term or condition of this Lease,  the prevailing
party  shall be entitled to all of its costs and  expenses,  including,  without
limitation,  reasonable  attorneys'  fees.  Landlord and Tenant hereby waive any
right to trial by jury in any  proceeding  based  upon a breach  of this  Lease.
Either party's failure to declare a default immediately upon its occurrence,  or
delay in taking  action  for a  default,  shall not  constitute  a waiver of the
default, nor shall it constitute an estoppel.

        26.03  Whenever  a period  of time is  prescribed  for the  taking of an
action by Landlord or Tenant (other than the payment of the Security  Deposit or
Rent),  the period of time for the  performance of such action shall be extended
by the number of days that the  performance is actually  delayed due to strikes,
acts of God,  shortages  of labor  or  materials,  war,  terrorist  acts,  civil
disturbances  and other causes beyond the  reasonable  control of the performing
party ("FORCE MAJEURE").

        26.04 Landlord shall have the right to transfer and assign,  in whole or
in part, all of its rights and obligations  under this Lease and in the Building
and  Property.  Upon  transfer  Landlord  shall be  released  from  any  further
obligations  hereunder  and Tenant  agrees to look  solely to the  successor  in
interest of Landlord for the performance of such obligations, provided that, any
successor  pursuant to a voluntary,  third party transfer (but not as part of an
involuntary transfer resulting from a foreclosure or deed in lieu thereof) shall
have assumed Landlord's obligations under this Lease.

        26.05 Landlord has delivered a copy of this Lease to Tenant for Tenant's
review only and the delivery of it does not  constitute an offer to Tenant or an
option.  Tenant  represents  that it has dealt  directly  with and only with the
Broker as a broker in  connection  with this Lease.  Tenant shall  indemnify and
hold Landlord and the Landlord  Related Parties  harmless from all claims of any
other brokers claiming to have represented Tenant in connection with this Lease.
Landlord shall indemnify and hold Tenant and the Tenant Related Parties harmless
from  all  claims  of any  brokers  claiming  to have  represented  Landlord  in
connection with this Lease.

        26.06 Time is of the essence  with  respect to Tenant's  exercise of any
expansion,  renewal or extension rights granted to Tenant. The expiration of the
Term,  whether by lapse of time,  termination  or  otherwise,  shall not relieve
either party of any obligations  which accrued prior to or which may continue to
accrue after the expiration or termination of this Lease.

        26.07 Tenant may peacefully  have, hold and enjoy the Premises,  subject
to the terms of this Lease, provided Tenant pays the Rent and fully performs all
of its covenants and  agreements.  This covenant  shall be binding upon Landlord
and its successors only during its or their  respective  periods of ownership of
the Building.

        26.08 This Lease does not grant any rights to light or air over or about
the Building.  Landlord  excepts and reserves  exclusively to itself any and all
rights  not  specifically  granted  to  Tenant  under  this  Lease.  This  Lease
constitutes  the entire  agreement  between the parties and supersedes all prior
agreements  and  understandings  related to the  Premises,  including  all lease
proposals,  letters of intent and other documents. Neither party is relying upon
any warranty,  statement or  representation  not  contained in this Lease.  This
Lease may be  modified  only by a  written  agreement  signed  by an  authorized
representative of Landlord and Tenant.

                                       12

<PAGE>

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

WITNESS/ATTEST:               LANDLORD:

                              MA-NEW ENGLAND EXECUTIVE PARK, L.L.C., A DELAWARE
                              LIMITED LIABILITY COMPANY

                              By: Equity Office Management, L.L.C., a Delaware
                                  limited liability company, its non-memeber
                                  manager

                                  By: /s/ Glann Verrette
                                      ------------------------------------------
                                  Name: Glenn Verrette
                                  Title: Vice President - Leasing Boston Region
 /s/ Kim Ruby
-------------------------
Name (print): Kim Ruby
_________________________
Name (print):____________

WITNESS/ATTEST:               TENANT:
                              UTIX GROUP, INC., A DELAWARE CORPORATION
 /s/Cynthia A. Cronan
-------------------------     By: /s/ John F. Burns
Name (print): Cynthia Cronan      ----------------------------------------------
_________________________     Name: John F. Burns
Name (print): ___________     Title: CFO
                                         75-2340624
                              --------------------------------------------------
                              Tenant's Tax ID Number (SSN or FEIN)

                                            13
<PAGE>

                                   EXHIBIT A

                        OUTLINE AND LOCATION OF PREMISES

                               [graphic omitted]

                                       1
<PAGE>

                                   EXHIBIT B

                               EXPENSES AND TAXES

        This  Exhibit is attached to and made a part of the Lease by and between
MA-NEW ENGLAND  EXECUTIVE PARK,  L.L.C.,  A DELAWARE LIMITED  LIABILITY  COMPANY
("Landlord") and UTIX GROUP, INC., A DELAWARE  CORPORATION  ("Tenant") for space
in the  Building  located  at Eight  New  England  Executive  Park,  Burlington,
Massachusetts 01803.

1.      PAYMENTS.

        1.01 Tenant shall pay Tenant's Pro Rata Share of the amount,  if any, by
which  Expenses  (defined  below) for each  calendar year during the Term exceed
Expenses for the Base Year (the "EXPENSE  EXCESS") and also the amount,  if any,
by which Taxes (defined below) for each Fiscal Year during the Term exceed Taxes
for the Base Year (the "TAX EXCESS").  If Expenses or Taxes in any calendar year
or Fiscal Year decrease below the amount of Expenses or Taxes for the Base Year,
Tenant's  Pro Rata  Share of  Expenses  or Taxes,  as the case may be,  for that
calendar year or Fiscal Year shall be $0.  Landlord  shall provide Tenant with a
good  faith  estimate  of the  Expense  Excess  and of the Tax  Excess  for each
calendar year or Fiscal Year during the Term. On or before the first day of each
month,  Tenant shall pay to Landlord a monthly  installment equal to one-twelfth
of Tenant's Pro Rata Share of Landlord's estimate of both the Expense Excess and
Tax Excess. After its receipt of the revised estimate, Tenant's monthly payments
shall be based upon the revised  estimate.  If Landlord does not provide  Tenant
with an  estimate  of the  Expense  Excess or the Tax  Excess by  January 1 of a
calendar year,  Tenant shall continue to pay monthly  installments  based on the
previous  year's  estimate(s)  until  Landlord  provides  Tenant  with  the  new
estimate.

        1.02 As soon as is practical  following the end of each calendar year or
Fiscal Year, as the case may be,  Landlord shall furnish Tenant with a statement
of the actual  Expenses  and Expense  Excess and the actual Taxes and Tax Excess
for the prior calendar year or Fiscal Year, as the case may be. If the estimated
Expense  Excess or estimated  Tax Excess for the prior  calendar  year or Fiscal
Year, as the case may be, is more than the actual  Expense  Excess or actual Tax
Excess for the prior calendar year or Fiscal Year, as the case may be,  Landlord
shall either  provide  Tenant with a refund or apply any  overpayment  by Tenant
against  Additional Rent due or next becoming due,  provided if the Term expires
before  the  determination  of  the  overpayment,   Landlord  shall  refund  any
overpayment  to Tenant  after  first  deducting  the amount of Rent due.  If the
estimated  Expense Excess or estimated Tax Excess for the prior calendar year or
Fiscal  Year,  as the case may be, is less  than the  actual  Expense  Excess or
actual Tax Excess,  for such prior calendar year or Fiscal Year, as the case may
be, Tenant shall pay Landlord, within 30 days after its receipt of the statement
of Expenses or Taxes,  any  underpayment  for the prior  calendar year or Fiscal
Year, as the case may be.

2.      EXPENSES.

        2.01 "EXPENSES"  means all costs and expenses  incurred in each calendar
year in connection  with  operating,  maintaining,  repairing,  and managing the
Building and the Property.  Expenses include, without limitation:  (a) all labor
and labor related costs, including wages, salaries,  bonuses,  taxes, insurance,
uniforms, training, retirement plans, pension plans and other employee benefits;
(b)  management  fees;  (c) the cost of  equipping,  staffing  and  operating an
on-site  and/or  off-site  management  office for the Building,  provided if the
management office services one or more other buildings or properties, the shared
costs  and  expenses  of  equipping,  staffing  and  operating  such  management
office(s) shall be equitably  prorated and apportioned  between the Building and
the  other  buildings  or  properties;  (d)  accounting  costs;  (e) the cost of
services; (f) rental and purchase cost of parts, supplies,  tools and equipment;
(g) insurance premiums and deductibles;  (h) electricity,  gas and other utility
costs; and (i) the amortized cost of capital improvements (as distinguished from
replacement  parts or components  installed in the ordinary  course of business)
made  subsequent to the Base Year which are: (1)  performed  primarily to reduce
current  or  future  operating  expense  costs,  upgrade  Building  security  or
otherwise improve the operating  efficiency of the Property;  or (2) required to
comply  with any Laws that are  enacted,  or first  interpreted  to apply to the
Property,  after the date of this Lease. The cost of capital  improvements shall
be amortized by Landlord over the lesser of the Payback Period  (defined  below)
or the useful  life of the  capital  improvement  as  reasonably  determined  by
Landlord.  The amortized cost of capital improvements may, at Landlord's option,
include actual or imputed interest at the rate that Landlord would reasonably be
required to pay to finance the cost of the capital improvement. "PAYBACK PERIOD"
means the reasonably estimated period of time that it takes for the cost savings
resulting  from a capital  improvement  to equal the total  cost of the  capital
improvement.

                                       1
<PAGE>

Landlord,  by itself or through an  affiliate,  shall have the right to directly
perform,  provide and be  compensated  for any  services  under this  Lease.  If
Landlord incurs Expenses for the Building or Property  together with one or more
other  buildings  or  properties,  whether  pursuant  to a  reciprocal  easement
agreement,  common area  agreement or  otherwise,  the shared costs and expenses
shall be equitably  prorated and  apportioned  between the Building and Property
and the other buildings or properties.

        2.02  Expenses  shall  not  include:  the cost of  capital  improvements
(except as set forth above);  depreciation;  principal  payments of mortgage and
other non-operating debts of Landlord;  the cost of repairs or other work to the
extent  Landlord is reimbursed by insurance or condemnation  proceeds;  costs in
connection with leasing space in the Building,  including brokerage commissions;
lease  concessions,  rental  abatements and construction  allowances  granted to
specific  tenants;  costs  incurred in  connection  with the sale,  financing or
refinancing of the Building;  fines,  interest and penalties incurred due to the
late payment of Taxes or Expenses;  organizational  expenses associated with the
creation  and  operation  of  the  entity  which  constitutes  Landlord;  or any
penalties or damages that  Landlord  pays to Tenant under this Lease or to other
tenants in the Building under their respective leases.

        2.03 If at any time during a calendar  year the Building is not at least
95% occupied or Landlord is not supplying  services to at least 95% of the total
Rentable Square Footage of the Building,  Expenses shall, at Landlord's  option,
be  determined  as if the  Building  had been 95% occupied and Landlord had been
supplying  services to 95% of the Rentable  Square  Footage of the Building.  If
Expenses for a calendar year are  determined as provided in the prior  sentence,
Expenses  for  the  Base  Year  shall  also  be   determined   in  such  manner.
Notwithstanding  the  foregoing,  Landlord may  calculate the  extrapolation  of
Expenses  under this Section based on 100% occupancy and service so long as such
percentage is used  consistently for each year of the Term. The extrapolation of
Expenses  under  this  Section  shall  be  performed  in  accordance   with  the
methodology specified by the Building Owners and Managers Association.

3. "TAXES" shall mean: (a) all real property taxes and other  assessments on the
Building and/or Property,  including,  but not limited to, gross receipts taxes,
assessments  for  special   improvement   districts  and  building   improvement
districts,  governmental charges, fees and assessments for police, fire, traffic
mitigation or other  governmental  service of purported benefit to the Property,
taxes and assessments  levied in substitution or  supplementation in whole or in
part of any such  taxes and  assessments  and the  Property's  share of any real
estate taxes and assessments  under any reciprocal  easement  agreement,  common
area  agreement  or  similar  agreement  as to the  Property;  (b) all  personal
property  taxes for property  that is owned by Landlord  and used in  connection
with the operation,  maintenance  and repair of the Property;  and (c) all costs
and fees incurred in connection  with seeking  reductions in any tax liabilities
described in (a) and (b), including,  without limitation,  any costs incurred by
Landlord  for  compliance,  review  and  appeal  of  tax  liabilities.   Without
limitation,  Taxes shall not include any income, capital levy, transfer, capital
stock, gift, estate or inheritance tax. If a change in Taxes is obtained for any
year of the Term during  which  Tenant paid  Tenant's  Pro Rata Share of any Tax
Excess,  then Taxes for that year will be  retroactively  adjusted  and Landlord
shall provide Tenant with a credit,  if any, based on the adjustment.  Likewise,
if a change is  obtained  for Taxes for the Base  Year,  Taxes for the Base Year
shall  be  restated  and the  Tax  Excess  for all  subsequent  years  shall  be
recomputed.  Tenant  shall pay Landlord the amount of Tenant's Pro Rata Share of
any such increase in the Tax Excess within 30 days after  Tenant's  receipt of a
statement from Landlord.

4. AUDIT RIGHTS. Tenant, within 365 days after receiving Landlord's statement of
Expenses, may give Landlord written notice ("REVIEW NOTICE") that tenant intends
to review Landlord's  records of the expenses for the calendar year to which the
statement applies.  Within a reasonable time after receipt of the review notice,
Landlord  shall make all pertinent  records  available for  inspection  that are
reasonably  necessary  for Tenant to conduct  its  review.  If any  records  are
maintained  at a location  other than the  management  office for the  Building,
Tenant may either  inspect  the  records at such other  location  or pay for the
reasonable cost of copying and shipping the records.  If Tenant retains an agent
to review Landlord's  records,  the agent must be with a CPA firm licensed to do
business in the state or  commonwealth  where the  Property  is located.  Tenant
shall be solely  responsible  for all costs,  expenses and fees incurred for the
audit.  Within 90 days after the records are made  available  to Tenant,  Tenant
shall have the right to give Landlord  written  notice (an  "OBJECTION  NOTICE")
stating in reasonable  detail any objection to Landlord's  statement of Expenses
for that year. If Tenant fails to give  Landlord an Objection  Notice within the
90 day period or fails to provide  Landlord  with a Review Notice within the 365
day period described above,  Tenant shall be deemed to have approved  Landlord's
statement of Expenses and shall be barred from raising any claims  regarding the
Expenses  for that year.  The  records  obtained  by Tenant  shall be treated as
confidential. In no

                                            2
<PAGE>

event shall Tenant be permitted to examine  Landlord's records or to dispute any
statement of Expenses  unless Tenant has paid and continues to pay all Rent when
due.

<PAGE>

                                   EXHIBIT C

                                   WORK LETTER

       This  Exhibit is  attached to and made a part of the Lease by and between
 MA-NEW ENGLAND  EXECUTIVE PARK,  L.L.C., A DELAWARE LIMITED  LIABILITY  COMPANY
 ("Landlord") and UTIX GROUP, INC., A DELAWARE CORPORATION  ("Tenant") for space
 in the  Building  located  at Eight New  England  Executive  Park,  Burlington,
 Massachusetts 01803.

 As used in this  Work  Letter,  the  "PREMISES"  shall  be  deemed  to mean the
 Premises, as initially defined in the attached Lease.

1.      Landlord shall perform  improvements  to the Premises in accordance with
        the plan SK-2 prepared by Denis J. Doyle,  AIA, dated June 30, 2004 (the
        "PLANS").  The  improvements  to be performed by Landlord in  accordance
        with the Plans are hereinafter referred to as the "LANDLORD WORK". It is
        agreed that  construction  of the  Landlord  Work will be  completed  at
        Landlord's  sole cost and  expense  (subject  to the terms of  Section 2
        below) using building standard methods, materials and finishes. Landlord
        shall enter into a direct  contract for the Landlord Work with a general
        contractor  selected by Landlord.  In addition,  Landlord shall have the
        right to select and/or approve of any subcontractors  used in connection
        with the Landlord  Work.  Landlord's  supervision  or performance of any
        work for or on behalf of Tenant shall not be deemed a representation  by
        Landlord that such Plans or the revisions thereto comply with applicable
        insurance requirements, building codes, ordinances, laws or regulations,
        or that the  improvements  constructed in accordance  with the Plans and
        any revisions thereto will be adequate for Tenant's use, it being agreed
        that Tenant shall be  responsible  for all elements of the design of the
        Plans (including, without limitation, compliance with law, functionality
        of design, the structural  integrity of the design, the configuration of
        the premises and the  placement of Tenant's  furniture,  appliances  and
        equipment).

2.      If Tenant shall request any revisions to the Plans,  Landlord shall have
        such  revisions  prepared at  Tenant's  sole cost and expense and Tenant
        shall reimburse Landlord for the cost of preparing any such revisions to
        the Plans,  plus any  applicable  state sales or use tax  thereon,  upon
        demand. Promptly upon completion of the revisions, Landlord shall notify
        Tenant in writing of the  increased  cost in the Landlord  Work, if any,
        resulting from such revisions to the Plans. Tenant,  within one Business
        Day, shall notify Landlord in writing whether it desires to proceed with
        such revisions.  In the absence of such written authorization,  Landlord
        shall have the option to continue work on the Premises  disregarding the
        requested revision.  Tenant shall be responsible for any Tenant Delay in
        completion of the Premises  resulting from any revision to the Plans. If
        such revisions  result in an increase in the cost of Landlord Work, such
        increased  costs,  plus any  applicable  state sales or use tax thereon,
        shall be payable by Tenant upon demand.  Notwithstanding anything herein
        to the  contrary,  all  revisions  to the Plans  shall be subject to the
        approval of Landlord.

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

                                       1
<PAGE>

                                    EXHIBIT D
                               COMMENCEMENT LETTER
                                    (EXAMPLE)

Date      ___________________________

Tenant    ___________________________
Address   ___________________________
          ___________________________
          ___________________________

Re:     Commencement  Letter with respect to that certain  Lease dated as of the
        ___ day of ____,  ____ by and between  MA-NEW  ENGLAND  EXECUTIVE  PARK,
        L.L.C.,  A DELAWARE LIMITED  LIABILITY  COMPANY,  as Landlord,  and UTIX
        GROUP, INC., A DELAWARE CORPORATION, as Tenant, for ____ rentable square
        feet on the ____  floor of the  Building  located  at Eight New  England
        Executive Park, Burlington, Massachusetts 01803.

Dear    _____________________________:

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

        1.      The Commencement Date of the Lease is _________________________;

        2.      The Termination Date of the Lease is  _________________________.

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

Sincerely,

____________________________
Authorized Signatory

Agreed and Accepted:

        Tenant:    UTIX GROUP, INC., A DELAWARE CORPORATION

        By:        ________________________
        Name:      ________________________
        Title:     ________________________
        Date:      ________________________

                                       1
<PAGE>

                                   EXHIBIT E

                         BUILDING RULES AND REGULATIONS

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

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

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

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

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

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

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

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

8.      Landlord  shall have the right to approve the weight,  size, or location
        of heavy equipment or articles in and about the Premises, which approval
        shall not be unreasonably

                                       1
<PAGE>

        withheld.  Damage  to the  Building  by the  installation,  maintenance,
        operation,  existence or removal of Tenant's  Property shall be repaired
        at Tenant's sole expense.

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

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

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

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

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

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

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

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

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

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

                                       2
<PAGE>

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

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

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

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

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

                                       3
<PAGE>

                                   EXHIBIT F

                              ADDITIONAL PROVISIONS

        This  Exhibit is attached to and made a part of the Lease by and between
MA-NEW ENGLAND  EXECUTIVE PARK,  L.L.C.,  A DELAWARE LIMITED  LIABILITY  COMPANY
("Landlord") and UTIX GROUP, INC., A DELAWARE  CORPORATION  ("Tenant") for space
in the  Building  located  at Eight  New  England  Executive  Park,  Burlington,
Massachusetts 01803.

        PARKING.

        1.01    During the initial  Term,  Tenant  agrees to lease from Landlord
                and Landlord  agrees to lease to Tenant a total of 13 unreserved
                parking  spaces  (the  "SPACES"),  for the use of Tenant and its
                employees, in the parking facility owned by Landlord that serves
                the  Building  (the  "PARKING  FACILITY"),  and if  the  Parking
                Facility  includes  a garage,  then such  Spaces  may be in such
                garage.  No deductions or allowances shall be made for days when
                Tenant or any of its  employees  does not  utilize  the  Parking
                Facility  or for Tenant  utilizing  less than all of the Spaces.
                Tenant shall not have the right to lease or  otherwise  use more
                than the  number of  reserved  and  unreserved  Spaces set forth
                above.

        1.02    During  the  initial  Term,   Tenant  shall  pay  Landlord,   as
                Additional Rent in accordance  with Section 4 of the Lease,  the
                sum of $0.00 per month, plus applicable tax thereon, if any, for
                each unreserved Space leased by Tenant  hereunder,  as such rate
                may be adjusted  from  time-to-time  to reflect the then current
                rate for parking in the Parking Facility.

        1.03    Except for  particular  spaces and areas  designated by Landlord
                for reserved parking,  all parking in the Parking Facility shall
                be on an unreserved, first-come, first-served basis.

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

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

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

        1.07    Landlord shall have the right to  temporarily  close the Parking
                Facility or certain areas therein in order to perform  necessary
                repairs, maintenance and improvements to the Parking Facility.

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

        1.09    Landlord may elect to provide  parking  cards or keys to control
                access to the Parking  Facility.  In such event,  Landlord shall
                provide Tenant with one card or

                                       1
<PAGE>

                key for each Space that  Tenant is leasing  hereunder,  provided
                that  Landlord  shall  have the right to  require  Tenant or its
                employees to place a deposit on such access cards or keys and to
                pay a fee for any lost or damaged cards or keys.

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

2.      ACCELERATION OPTION.

        2.01    Tenant shall have the right to accelerate the  Termination  Date
                ("ACCELERATION OPTION") of the Lease, with respect to the entire
                Premises  only,  from  October 31, 2009 to October 31, 2007 (the
                "ACCELERATED TERMINATION DATE"), if:

                (a)     Tenant  is not in  default  under  the Lease at the date
                        Tenant  provides  Landlord with an  Acceleration  Notice
                        (hereinafter defined); and

                (b)     no part of the  Premises is sublet for a term  extending
                        past the Accelerated Termination Date; and

                (c)     the Lease has not been assigned; and

                (d)     Landlord receives notice of acceleration  ("ACCELERATION
                        NOTICE") not less than 9 full  calendar  months prior to
                        the Accelerated Termination Date.

        2.02    If   Tenant   exercises   its   Acceleration   Option,   Tenant,
                simultaneously  with delivery of the  Acceleration  Notice shall
                pay to  Landlord a fee (the  "ACCELERATION  FEE") in  connection
                with  the  acceleration  of the  Termination  Date  and not as a
                penalty.  The Acceleration Fee shall be equal to the unamortized
                portion of any  concessions,  commissions,  allowances and other
                expenses  incurred by Landlord in connection with the leasing of
                the  Premises to Tenant,  plus 6 months  Base Rent,  at the then
                applicable  rate,  applicable to the Premises.  The Acceleration
                Fee shall be  increased  by an amount  equal to the  unamortized
                portion of any  concessions,  commissions,  allowances  or other
                expenses  incurred by Landlord in connection with any additional
                space leased by Tenant that is subject to acceleration hereunder
                plus 6 months Base Rent, at the then applicable rate, applicable
                to such  additional  space.  Tenant shall remain  liable for all
                Base Rent, Additional Rent and other sums due under the Lease up
                to and including the  Accelerated  Termination  Date even though
                billings  for  such  may  occur  subsequent  to the  Accelerated
                Termination  Date.  The  "unamortized  portion"  of  any  of the
                foregoing shall be determined  using an interest rate of 10% per
                annum.

        2.03    If Tenant, subsequent to providing Landlord with an Acceleration
                Notice,  defaults  in  any  of  the  provisions  of  this  Lease
                (including, without limitation, a failure to pay any installment
                of the Acceleration Fee due hereunder), Landlord, at its option,
                may (i) declare Tenant's exercise of the Acceleration  Option to
                be null and  void,  and any  Acceleration  Fee paid to  Landlord
                shall  be  returned  to  Tenant,   after  first   applying  such
                Acceleration  Fee against any past due Rent under the Lease,  or
                (ii)  continue to honor  Tenant's  exercise of its  Acceleration
                Option,  in which  case,  Tenant  shall  remain  liable  for the
                payment  of  the   Acceleration  Fee  and  for  all  Base  Rent,
                Additional  Rent and  other  sums due  under the Lease up to and
                including the Accelerated  Termination Date even though billings
                for such may occur  subsequent  to the  Accelerated  Termination
                Date.

        2.04    As of the date Tenant  provides  Landlord  with an  Acceleration
                Notice, any unexercised rights or options of Tenant to renew the
                Term of the Lease or to expand the Premises  (whether  expansion
                options,  rights of first or second refusal,  rights of first or
                second offer,  or other  similar  rights),  and any  outstanding
                tenant  improvement  allowance not claimed and properly utilized
                by

                                            2
<PAGE>

                Tenant  in  accordance  with the  Lease as of such  date,  shall
                immediately be deemed  terminated and no longer  available or of
                any further force or effect.

        2.05    Notwithstanding  anything to the contrary  contained herein, if,
                within 6 months of the date Landlord  receives the  acceleration
                notice,  Tenant  enters into a new lease for space  (which is at
                least as large as the space  being  terminated  pursuant to this
                Section  2) in the  Building  or in  another  building  owned by
                Landlord,  or a parent,  subsidiary,  affiliate or other related
                company of Landlord,  Tenant shall have no obligation to pay the
                Acceleration Fee set forth herein.

                                       3
<PAGE>

                                   EXHIBIT G

                           COMMENCEMENT DATE AGREEMENT

        Reference is made to that certain  Lease by and between  MA-NEW  ENGLAND
EXECUTIVE PARK, L.L.C., A DELAWARE LIMITED LIABILITY COMPANY,  Landlord and UTIX
GROUP,  INC., A DELAWARE  CORPORATION,  Tenant,  and dated  ________________,  a
Notice of which is filed for registration  with the Suffolk Registry District of
the Land Court as Document No. ____________________

        Landlord and Tenant hereby confirm and agree that the Commencement  Date
under the Lease is ________________________.

        This  Commencement  Date Agreement is executed as a sealed instrument as
of ____________________, 20__.

        IN WITNESS WHEREOF, Landlord and Tenant have executed this exhibit as of
the day and year first above written.

WITNESS/ATTEST:                   LANDLORD:

                                  MA-NEW ENGLAND EXECUTIVE PARK, L.L.C., A
                                  DELAWARE LIMITED LIABILITY COMPANY

                                       By:   Equity Office Management, L.L.C., a
                                             Delaware limited liability company,
                                             its non-member manager

                                             By:    EXHIBIT - DO NOT EXECUTE

                                             Name:  EXHIBIT - DO NOT EXECUTE

                                             Title: EXHIBIT - DO NOT EXECUTE
______________________________
Name (print): ________________
______________________________
Name (print): ________________

WITNESS/ATTEST:                   TENANT:

                                  ________________________________________, a(n)
                                  ______________________________________________

______________________________    By:    EXHIBIT - DO NOT EXECUTE
Name (print): ________________
______________________________    Name:  EXHIBIT - DO NOT EXECUTE
Name (print): ________________
                                  Title: EXHIBIT - DO NOT EXECUTE

                                       1EX-10.1

 

Exhibit 10.1

 

UST INC.

AMENDED AND RESTATED STOCK INCENTIVE PLAN

NOTICE OF GRANT OF RESTRICTED STOCK

     This Notice is to certify that the Participant named below has been granted the number of
shares of Restricted Common Stock set forth below under the terms and conditions set forth in this
Notice. This Notice is subject to and incorporates by reference the terms and conditions of the
Restricted Stock Agreement ((the “Agreement”), a copy of which is enclosed). Please refer to the
Restricted Stock Agreement and the UST Inc. Amended and Restated Stock Incentive Plan (the “Plan”)
document for an explanation of the terms and conditions of this grant and a full description of
your rights and obligations. You must sign the Agreement in order for this Notice and grant to be
effective. Please sign and date the Agreement on the last page and return it promptly in the
enclosed envelope. Regardless of whether we receive your signed Agreement, any attempt by you to
exercise your rights under the Agreement will signify your acceptance of the terms and conditions
of the Agreement and of the Plan.

	 	 	 
	Name of Participant:

	 	Murray S. Kessler

	 
	 	 
	Number of Restricted Shares:

	 	50,000
	 
	 	 
	Per Share Value on Grant Date:

	 	$48.02
	 
	 	 
	Grant Date:

	 	January 3, 2005

	 
	 	 
	Vesting Conditions:

	 	50,000 shares shall vest on January 3, 2010
provided and solely to the extent that the
Company has achieved, in any three (3) of
the five (5) year periods ending on
12/31/05, 12/31/06, 12/31/07, 12/31/08, and
12/31/09 respectively, both: (A) positive
annual Earnings Per Share (EPS) from
continuing operations; and (B) a dividend
payout ratio of at least 50% of EPS from
continuing operations.

	 
	 	 
	Additional Terms:

	 	See the Restricted Stock Agreement.

 

 

UST INC.

AMENDED AND RESTATED STOCK INCENTIVE PLAN

RESTRICTED STOCK AGREEMENT

          RESTRICTED STOCK AGREEMENT, made as of the date set forth on the Notice of Grant of Restricted
Stock, by and between UST Inc., a Delaware corporation (the “Company”), pursuant to the Amended and
Restated Stock Incentive Plan (the “Plan”) and the employee of the Company or a Subsidiary named on
the Notice of Grant of Restricted Stock (the “Employee”);

          WHEREAS, the Company desires, by affording the Employee the opportunity to acquire or enlarge
the Employee’s ownership of shares of the Company’s common stock, $.50 par value (“Common Stock”),
providing the Employee with a direct proprietary interest in the Company’s success, to carry out
the purpose of the Plan; and

          WHEREAS, the Committee administering the Plan has granted (as of the effective date of grant
specified in the Notice of Grant of Restricted Stock) to the Employee the shares of Restricted
Stock as set forth in the Notice of Grant of Restricted Stock.

          NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth and for other
good and valuable consideration, the parties hereto have agreed and do hereby agree as follows:

          1. Grant of Award. Pursuant to Section 7 of the Plan, the Company grants to the
Employee, subject to the terms and conditions of the Plan and subject further to the terms and
conditions set forth herein, the number of shares of Restricted Stock as shown on the Notice of
Grant of Restricted Stock. The Participant’s grant and record of Restricted Stock share ownership
shall be kept on the books of the Company until the restrictions on transfer have lapsed. At the
Employee’s request, vested shares may be evidenced by stock certificates.

          2. Vesting. The shares of Restricted Stock granted to the Employee shall vest in
accordance with the vesting conditions set forth in the Notice of Grant of Restricted Stock. Such
vesting conditions indicate the conditions under and date upon which the Employee shall be entitled
to receive shares of freely transferable Common Stock equal to the number of vested shares of
Restricted Stock, provided that, as of the vesting date, the Employee has not incurred a
termination of service with the Company and all Subsidiaries (collectively, the Company and its
Subsidiaries shall be referred to herein as the “Company”). There shall be no proportionate or
partial vesting in the periods between the vesting date(s), if any, specified in the Notice of
Grant of Restricted Stock and all vesting shall occur only on such vesting date(s), except as set
forth in Section 8 below.

          Other than as set forth in Section 8 below and in the Plan, no vesting shall occur after the
termination of a Employee’s employment or service with the Company for any reason.

 

 

          3. Rights as a Stockholder. The Employee shall have all of the rights of a
stockholder with respect to the Shares of Restricted Stock, including the right to vote on all
matters with respect to which the stockholders of the Company have the right to vote and the right
to receive dividends thereon.

          4. Restrictions on Transfer. Shares of Restricted Stock may not be transferred or
otherwise disposed of by the Employee, including by way of sale, assignment, transfer, pledge,
hypothecation or otherwise, except as permitted by the Committee, or by will or the laws of descent
and distribution.

          5. Approvals. The delivery of any shares of Common Stock hereunder is subject to
approval of any government agency which may, in the opinion of counsel, be required in connection
with the authorization, issuance or sale of Common Stock. No Common Stock shall be issued upon the
lapse of restrictions relating to the shares of Restricted Stock prior to compliance with such
requirements and with the Company’s listing agreement with the New York Stock Exchange (or other
national exchange upon which the Company’s shares may then be listed).

          6. Invalid Transfers. No purported sale, assignment, mortgage, hypothecation,
transfer, pledge, encumbrance, gift, transfer in trust (voting or other) or other disposition of,
or creation of a security interest in or lien on, any of the shares of Restricted Stock by any
holder thereof in violation of the provisions of this Restricted Stock Agreement shall be valid,
and the Company will not transfer any of said shares of Restricted Stock on its books nor will any
of said shares of Restricted Stock be entitled to vote, nor will any dividends be paid thereon,
unless and until there has been full compliance with said provisions to the satisfaction of the
Company. The foregoing restrictions are in addition to and not in lieu of any other remedies,
legal or equitable, available to enforce said provisions.

          7. Change in Control. Upon the occurrence of a Change in Control, the restrictions
that apply to any shares of Restricted Stock which have not yet vested, or with respect to which
the restrictions have not lapsed, shall immediately lapse.

          8. Effect of Termination of Employment. If the employment of the Employee is
terminated by reason of his death or Disability, or upon his Retirement, or for any other reason if
the Committee so determines, the number of shares of Restricted Stock which have not theretofore
become vested in accordance with Section 2 of this Agreement shall become fully vested as of the
date of such termination of employment. If the employment of the Employee is terminated by the
Company other than for Cause, or by the Employee for Good Reason (as defined in the Severance
Agreement by and between UST Inc., U.S. Smokeless Tobacco Company and the Employee, dated as of
September 13, 2004), the Employee shall become vested as of the date of termination with respect to
a pro rata portion of the shares of Restricted Stock granted pursuant to the Notice of Grant of
Restricted Stock. For this purpose, the pro rata portion shall be the number of shares granted
thereby multiplied by a fraction, the numerator of which is the number of full months which have
elapsed from the Grant Date specified in the Notice of

2

 

Grant of Restricted Stock until the date of termination, and the denominator of which is 60. If
the employment of the Employee is terminated for any other reason and if the Committee does not
determine otherwise, the number of shares of Restricted Stock that have not theretofore become
vested shall be forfeited. For purposes of this Agreement, the term “Disability” shall mean a
“disability,” as defined in the Company’s Long-Term Disability Plan or, if such plan is not
applicable to the Employee, as defined by the State or federal disability program which applies to
the Employee and (ii) the term “Retirement” shall mean the retirement of the Employee from the
Company, as defined in any employee retirement plan of the Company in which the Employee
participates.

          9. Finding of Cause. If (a) the employment of the Employee is terminated for Cause or
(b) after the Employee’s termination of employment with the Company other than for Cause, the
Company discovers the occurrence of an act or failure to act by the Employee, while in the employ
of the Company, that would have enabled the Company to terminate the Employee’s employment for
Cause had the Company known of such act or failure to act at the time of its occurrence, or (c)
subsequent to his termination of employment, the Employee commits a Competitive Act and, in each
case, if the act constituting Cause is a Competitive Act or Willful Misconduct, such act is
discovered by the Company within three (3) years of its occurrence, then, unless otherwise
determined by the Committee,

	(i)  	any shares of Restricted Stock granted pursuant to the Notice
of Grant of Restricted Stock which have not yet become vested shall thereupon
be forfeited and shall be returned to the Company; and

	(ii)  	if the act constituting Cause is a Competitive Act or Willful
Misconduct, the Employee (or, in the event of the Employee’s death following
the commission of such act, his beneficiaries or estate) shall (A) return to
the Company all shares of Restricted Stock that became vested during the 180
day period prior to and including the date of the termination of the
Employee’s employment (the “Acquired Shares”) and (B) to the extent such
Acquired Shares granted pursuant to the Notice of Grant of Restricted Stock
have previously been sold or otherwise disposed of by the Employee, other than
by reason of death (or if applicable, by his beneficiaries or estate), repay
to the Company the Fair Market Value of such shares on the date of such sale
or other disposition.

	(iii)  	for purpose of clause (ii)(B) above, (A) the amount of
repayment described therein shall not be affected by whether the Employee (or,
if applicable, his beneficiaries or estate) actually received such Fair Market
Value with respect to such sale or other disposition, and (B) repayment may,
without limitation, be affected, at the discretion of the Company, by means of
offset against any amount owed by the Company to the Employee (or, if
applicable, his beneficiaries or estate).

3

 

          10. Taxes. The Employee shall pay to the Company promptly upon request, and in any
event at the time the Employee recognizes taxable income in respect to the shares of Restricted
Stock (or, if the Employee makes an election under Section 83(b) of the Code in connection with
such grant, on or about the date of grant), an amount equal to the federal, state and/or local
taxes the Company determines it is required to withhold under applicable tax laws with respect to
the shares of Restricted Stock. The Employee may satisfy the foregoing requirement by making a
payment to the Company in cash or, with the consent of the Company, by authorizing the Company to
withhold cash otherwise due to the Employee (e.g., by filing a revised form W-4 to increase payroll
tax withholdings). The Employee shall promptly notify the Company of any election made pursuant to
Section 83(b) of the Code. The Employee understands that he/she (and not the Company) shall be
responsible for any tax liability that may arise as a result of the transactions contemplated by
this Restricted Stock Agreement.

THE EMPLOYEE ACKNOWLEDGES THAT IT IS THE EMPLOYEE’S SOLE RESPONSIBILITY AND NOT THE
COMPANY’S TO FILE TIMELY THE ELECTION UNDER SECTION 83(b) OF THE CODE, IN THE EVENT THAT
THE EMPLOYEE DESIRES TO MAKE THE ELECTION.

          11. Compliance with Law and Regulations; Legend. The award and any obligation of the
Company hereunder shall be subject to all applicable federal, state and local laws, rules and
regulations and to such approvals by any government or regulatory agency as may be required. The
Company may require, as a condition of the issuance and delivery of certificates evidencing
Restricted Stock pursuant to the terms hereof, that the certificates bear such legends as set forth
immediately below, in addition to any other legends required under federal and state securities
laws or as otherwise determined by the Committee.

The transferability of this certificate and the shares of stock represented hereby are
subject to the restrictions, terms and conditions (including forfeiture provisions and
restrictions against transfer) contained in the UST Inc. Amended and Restated Stock
Incentive Plan and an Agreement entered into between the registered owner of such shares
and the Company. A copy of the Plan and Agreement is on file in the office of the
Secretary of the Company, 100 Putnam Avenue, Greenwich, Connecticut 06830.

Such legend shall not be removed until such shares vest pursuant to the terms hereof.

          12. Incorporation of Plan. This Agreement is made under the provisions of the Plan
(which is incorporated herein by reference) and shall be interpreted in a manner consistent with
it. To the extent that this Agreement is silent with respect to, or in any way inconsistent with,
the terms of the Plan, the provisions of the Plan shall govern and this Restricted Stock Agreement
shall be deemed to be modified accordingly. Unless otherwise defined herein or otherwise required
by the context, all terms used herein shall have the meaning ascribed to them in the Plan.

4

 

          13. Notices. Any notices required or permitted hereunder shall be addressed to the
Company, at 100 West Putnam Avenue, Greenwich, Connecticut 06830, or to the Employee at the address
then on record with the Company, as the case may be, and deposited, postage prepaid, in the United
States mail. Either party may, by notice to the other given in the manner aforesaid, change his or
its address for future notices.

          14. Successor. This Agreement shall bind and inure to the benefit of the Company, its
successors and assigns, and the Employee and his personal representatives and beneficiaries.

          15. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Delaware. The Committee shall have final authority to interpret and
construe the Plan and this Agreement and to make any and all determinations under them, and its
decision shall be binding and conclusive upon the Employee and his legal representative in respect
of any questions arising under the Plan or this Agreement.

          16. Amendment. This Agreement may be amended or modified by the Company at any time;
provided that notice is provided to the Employee in accordance with Section 13; and provided
further that no amendment or modification that is adverse to the rights of the Employee as provided
by this Agreement shall be effective unless set forth in a writing signed by the parties hereto.

          17. Binding Agreement. This Agreement shall be binding upon the Employee and his or
her personal representatives and beneficiaries without any need for additional action by the
Employee, and any attempt by the Employee and his or her personal representatives and beneficiaries
to exercise any rights under this Agreement shall be conclusive evidence of such person’s
acceptance thereof.

5

 

IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by its officer
thereunder duly authorized and the Employee has hereunto set his hand, all as of the day and year
set forth below.

UST INC.

	 	 	 	 	 
	 	 	 
	Name:

	 	Vincent A. Gierer, Jr.
	 	 
	Title:

	 	Chairman of the Board
and Chief Executive
Officer	 	 

The undersigned hereby acknowledges having read this Restricted Stock Agreement and the Plan and
hereby agrees to be bound by all provisions set forth herein and in the Plan.

	 	 	 	 	 
	

	 	

	 	 
	Employee

	 	Date	 	 
	 
	 	 	 	 
	Murray S. Kessler
	 	 	 	 
	please print name
	 	 	 	 

6

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