Document:

Exhibit 4.5

 

SENIOR SECURED NOTE

 

 

	
  $                .00

  	
   

  	
  New York, New York

  
	
   

  	
   

  	
  , 2006

  

 

 

                                FOR VALUE
RECEIVED, the undersigned, a Delaware corporation having an address at 125
CambridgePark Drive, 4th Floor, Cambridge, MA 02140, hereby promises to pay to the order of AIGH
Investment Partners, LLC, a Delaware limited liability company, or assigns (“Lender”),
at its offices located at 6006 Berkeley Ave., Baltimore, MD 21209 or at such
other place as the Lender may from time to time designate to the undersigned in
writing, on July 15, 2006, or such earlier date as required hereunder, the
sum of                       
AND 00/00 DOLLARS ($            .00)
plus interest at a rate per annum equal to eight percent (8%).  In no event, however, shall interest
hereunder be in excess of the maximum interest rate permitted by law.

 

                                The obligations
of the undersigned are secured in accordance with the terms of a Security
Agreement (as amended, restated, modified and supplemented from time to time,
the “Security Agreement”) between the undersigned and Lender, dated September
6, 2005, by the pledge of certain Collateral, as defined in such Security
Agreement.  This Note is one of the
Senior Secured Notes referred to in the Security Agreement.

 

                A.            Payment.
This Note may be prepaid without premium or penalty, in whole or in part.

 

                B.            Default;
Remedy. If any one or more of the following events of default (each, an “Event
of Default”) shall occur, that is to say:

 

                                                                1.             default shall be made in the
payment of any principal or interest of this Note when the same shall become
due and payable, whether at maturity, by acceleration, by notice of intention
to prepay or otherwise;

 

                                                                2.             any obligation of the undersigned
other than its obligations to Lender hereunder becomes or is declared to be due
and payable and shall not have been paid within thirty (30) days;

 

                                                                3.             the undersigned shall become unable
to pay its debts as they mature, seek to auction all or a substantial portion
of its assets, make a general assignment for the benefit of creditors, commence
or cause to be commenced a meeting of his creditors or take advantage of any of
the insolvency laws, or a case is commenced or a petition in bankruptcy or for
an arrangement or reorganization under the Federal Bankruptcy Code (i) is filed
against the undersigned, or (ii) is filed by the undersigned, or a custodian or
receiver (or other court designee performing the functions of a receiver) is
appointed for 

 

 

or takes
possession of the undersigned’s assets or affairs, or an order for relief in a
case commenced under the Federal Bankruptcy Code is entered;

 

                                                                4.             any judgment or judgments against
the undersigned or its property for any amount remains unpaid, undischarged,
unsatisfied, unbonded or undismissed for a period of ten (10) days, or a levy,
sequestration or attachment against the undersigned or his property for any
amount remains unpaid, undischarged, unstayed, unsatisfied or undismissed for a
period of ten (10) days;

 

                                                                5.             any guaranty of the obligations of
the undersigned to Lender is terminated or breached, or if any guarantor of the
obligations of the undersigned to the Lender attempts to terminate, challenge
the validity of, or its liability under, any such guaranty or similar
agreement, or the undersigned terminates any guaranty which he has given to
Lender to secure the indebtedness of any third party; or

 

                                                                6.             any event of default shall occur
under any agreement between Lender and the undersigned, including without
limitation the Security Agreement, which is not cured within any applicable
grace period,

 

then this Note (x)(i)
upon the occurrence of an Event of Default pursuant to subsection 3 of this
Section (B) shall immediately become due and payable, without notice; and (ii)
upon the occurrence of any other Event of Default, shall become due and
payable, upon delivery of written notice of such Event of Default by Lender to
the undersigned, in each case together with reasonable attorneys’ fees, if the
collection hereof is placed in the hands of an attorney to obtain or enforce
payment hereof; and (y) shall bear interest at a rate of interest per annum
equal to fifteen percent (15%).  To the
extent permitted by applicable law interest shall accrue with respect to
interest that is due and not paid.

 

                C.            Governing
Law.  This Note is being delivered in
the State of New York, and shall be construed and enforced in accordance with
the laws of such State.  Any judicial
proceeding by the undersigned against Lender involving, directly or indirectly,
any matter or claim in any way arising out of, related to or connected with
this Note, shall be brought only in federal or state court located in the City
of New York, State of New York.  Any
judicial proceeding brought against the undersigned with respect to this Note
may be brought in any court of competent jurisdiction in the City of New York,
State of New York, United States of America, and, by execution and delivery of
this Note, the undersigned accepts, generally and unconditionally, the
non-exclusive jurisdiction of the aforesaid courts, and irrevocably agrees to
be bound by any judgment rendered thereby in connection with this Note or any
related agreement.  Nothing herein shall
affect the right to serve process in any manner permitted by law or shall limit
the right of Lender to bring proceedings against the undersigned in the courts
of any other jurisdiction.  The
undersigned waives any objection to jurisdiction and venue of any action
instituted hereunder and shall not assert any defense based on lack of
jurisdiction or venue or based upon forum non conveniens.

 

                D.            Waiver
of Jury Trial.  THE UNDERSIGNED
EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR
CAUSE OF 

 

 

2

 

ACTION (1) ARISING UNDER
THIS NOTE OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED
IN CONNECTION HEREWITH, OR (2) IN ANY WAY CONNECTED WITH OR RELATED OR
INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO
THIS NOTE OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED
IN CONNECTION HEREWITH, OR THE TRANSACTIONS RELATED HERETO OR THERETO IN EACH
CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN
CONTRACT OR TORT OR OTHERWISE; AND THE UNDERSIGNED HEREBY AGREES AND CONSENTS
THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY
COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY MAY FILE AN ORIGINAL COUNTERPART
OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THIS WAIVER OF
THE RIGHT TO TRIAL BY JURY.

 

                E.             Notices.  All notices required hereunder shall be given
in the manner set forth in the Security Agreement.

 

                The undersigned expressly waives any presentment,
demand, protest, notice of protest, or notice of any kind.

 

 

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  LIGHTSPACE CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  By: 

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  , Authorized
  Signatory

  

 

 

 

 

 

 

 

3Exhibit
10.1

 

 

 

 

THE FLATLEY COMPANY

 

 

STANDARD FORM OF COMMERCIAL LEASE

 

 

 

 

 

	
  SECTION

  	
   

  	
  PAGE

  
	
   

  	
   

  	
   

  
	
  ARTICLE I

  	
  SUMMARY OF BASIC LEASE
  PROVISIONS

  	
  4

  
	
  SECTION 1.1

  	
  INTRODUCTION

  	
  4

  
	
  SECTION 1.2

  	
  BASIC DATA

  	
  4

  
	
  SECTION 1.3

  	
  ENUMERATION OF EXHIBITS

  	
  6

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
  DESCRIPTION OF PREMISES
  AND APPURTENANT RIGHTS

  	
  6

  
	
  SECTION 2.1

  	
  LOCATION OF PREMISES

  	
  7

  
	
  SECTION 2.2

  	
  APPURTENANT RIGHTS AND
  RESERVATIONS

  	
  7

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
  TERM OF LEASE: CONDITION
  OF PREMISES

  	
  7

  
	
  SECTION 3.1

  	
  TERM OF LEASE

  	
  7

  
	
  SECTION 3.2

  	
  CONDITION OF PREMISES

  	
  8

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
  RENT

  	
  8

  
	
  SECTION 4.1

  	
  RENT PAYMENTS

  	
  8

  
	
  SECTION 4.2

  	
  REAL ESTATE TAX

  	
  9

  
	
  SECTION 4.3

  	
  TENANT’S SHARE OF
  OPERATING COSTS

  	
  11

  
	
  SECTION 4.4

  	
  INDEPENDENT COVENANTS

  	
  13

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
  USE OF PREMISES

  	
  13

  
	
  SECTION 5.1

  	
  PERMITTED USE

  	
  13

  
	
  SECTION 5.2

  	
  COMPLIANCE WITH LAWS

  	
  14

  
	
  SECTION 5.3

  	
  INSURANCE RISKS

  	
  15

  
	
  SECTION 5.4

  	
  ELECTRICAL EQUIPMENT

  	
  15

  
	
  SECTION 5.5

  	
  TENANT’S OPERATIONAL
  COVENANTS

  	
  15

  
	
  SECTION 5.6

  	
  SIGNS, BLINDS and DRAPES

  	
  16

  
	
  SECTION 5.7

  	
  HAZARDOUS MATERIALS

  	
  16

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
  INSTALLATIONS,
  ALTERATIONS, AND ADDITIONS

  	
  16

  
	
  SECTION 6.1

  	
  INSTALLATIONS,
  ALTERATIONS, AND ADDITIONS

  	
  16

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
  ASSIGNMENT AND SUBLETTING

  	
  18

  
	
  SECTION 7.1

  	
  PROHIBITION

  	
  18

  
	
  SECTION 7.2

  	
  ACCEPTANCE OF RENT FROM
  TRANSFEREE

  	
  20

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
  REPAIRS AND MAINTENANCE

  	
  20

  
	
  SECTION 8.1

  	
  TENANT OBLIGATIONS

  	
  20

  

 

 

	
  SECTION 8.2

  	
  LANDLORD OBLIGATIONS

  	
  20

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
  SERVICES TO BE FURNISHED
  BY LANDLORD;

  	
   

  
	
   

  	
  UTILITIES

  	
  21

  
	
  SECTION 9.1

  	
  LANDLORD’S SERVICES

  	
  21

  
	
  SECTION
  9.2

  	
  CAUSES
  BEYOND CONTROL OF THE LANDLORD

  	
  21

  
	
  SECTION 9.3

  	
  SEPARATELY METERED UTILITIES

  	
  21

  
	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
  INDEMNITY

  	
  21

  
	
  SECTION 10.1

  	
  THE TENANT’S INDEMNITY

  	
  22

  
	
  SECTION 10.2

  	
  THE TENANT’S RISK

  	
  22

  
	
  SECTION 10.3

  	
  INJURY CAUSED BY THIRD
  PARTIES

  	
  23

  
	
  SECTION 10.4

  	
  SECURITY

  	
  23

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI

  	
  INSURANCE

  	
  23

  
	
  SECTION 11.1

  	
  TENANT INSURANCE OBLIGATIONS

  	
  23

  
	
  SECTION 11.2

  	
  CONSTRUCTION PERIOD
  INSURANCE

  	
  23

  
	
  SECTION 11.3

  	
  WAIVER OF SUBROGATION

  	
  24

  
	
   

  	
   

  	
   

  
	
  ARTICLE XII

  	
  CASUALTY

  	
  24

  
	
  SECTION 12.1

  	
  DEFINITION OF “SUBSTANTIAL
  DAMAGE” AND

  	
   

  
	
   

  	
  “PARTIAL DAMAGE”

  	
  24

  
	
  SECTION 12.2

  	
  PARTIAL DAMAGE TO THE
  BUILDING

  	
  24

  
	
  SECTION 12.3

  	
  SUBSTANTIAL DAMAGE TO THE
  BUILDING

  	
  25

  
	
  SECTION 12.4

  	
  ABATEMENT OF RENT

  	
  25

  
	
  SECTION 12.5

  	
  MISCELLANEOUS

  	
  25

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIII

  	
  EMINENT DOMAIN

  	
  26

  
	
  SECTION 13.1

  	
  RIGHTS OF TERMINATION FOR
  TAKING

  	
  26

  
	
  SECTION 13.2

  	
  PAYMENT OF AWARD

  	
  26

  
	
  SECTION 13.3

  	
  ABATEMENT OF RENT

  	
  27

  
	
  SECTION 13.4

  	
  MISCELLANEOUS

  	
  27

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIV

  	
  TENANT’S DEFAULT

  	
  27

  
	
  SECTION 14.1

  	
  TENANT’S DEFAULT

  	
  27

  
	
   

  	
   

  	
   

  
	
  ARTICLE XV

  	
  THE LANDLORD’S ACCESS TO
  PREMISES

  	
  31

  
	
  SECTION 15.1

  	
  THE LANDLORD’S RIGHT OF
  ACCESS

  	
  31

  
	
   

  	
   

  	
   

  
	
  ARTICLE XVI

  	
  LANDLORD’S MORTGAGES

  	
  31

  
	
  SECTION 16.1

  	
  SUBORDINATION

  	
  31

  
	
  SECTION 16.2

  	
  MODIFICATIONS

  	
  32

  
	
   

  	
   

  	
   

  
	
  ARTICLE XVII

  	
  MISCELLANEOUS PROVISIONS

  	
  32

  
	
  SECTION 17.1

  	
  CAPTIONS

  	
  32

  
	
  SECTION 17.2

  	
  BROKERAGE

  	
  32

  

 

 

2

 

	
  SECTION
  17.3

  	
  HOLDOVER

  	
  33

  
	
  SECTION 17.4

  	
  COUNTERPARTS

  	
  33

  
	
  SECTION 17.5

  	
  CONSTRUCTION AND
  GRAMMATICAL USAGE

  	
  33

  
	
  SECTION 17.6

  	
  SECURITY DEPOSIT

  	
  33

  
	
  SECTION 17.7

  	
  LANDLORD’S ENFORCEMENT
  EXPENSES

  	
  33

  
	
  SECTION 17.8

  	
  NO SURRENDER

  	
  34

  
	
  SECTION 17.9

  	
  COVENANT OF QUIET
  ENJOYMENT

  	
  35

  
	
  SECTION 17.10

  	
  NO PERSONAL LIABILITY OF
  THE LANDLORD

  	
  35

  
	
  SECTION 17.11

  	
  NOTICES

  	
  35

  
	
  SECTION 17.12

  	
  FINANCIAL INFORMATION

  	
  35

  
	
  SECTION 17.13

  	
  RULES AND REGULATIONS

  	
  35

  
	
  SECTION 17.14

  	
  RIGHT TO MOVE

  	
  36

  
	
  SECTION 17.15

  	
  ESTOPPEL CERTIFICATES

  	
  36

  
	
  SECTION 17.16

  	
  SIGNAGE

  	
  36

  
	
  SECTION 17.17

  	
  WHEN LEASE BECOMES BINDING

  	
  36

  
	
  SECTION 17.18

  	
  MICELLANEOUS

  	
  37

  
	
  SECTION 17.19

  	
  ENTIRE AGREEMENT

  	
  37

  
	
   

  	
   

  	
   

  
	
  RULES AND REGULATIONS

  	
   

  
	
  EXHIBIT A:

  	
  PLAN showing the Premises

  	
  43

  
	
  EXHIBIT B:

  	
  Description of Landlord’s
  Work

  	
  44

  
	
  EXHIBIT C:

  	
  Term Commencement Date
  Agreement

  	
  45

  

 

 

 

3

 

LEASE

 

This instrument is an indenture of lease by and between John J. Flatley
and Gregory D. Stoyle, Trustees of The Schrafft’s Nominee Trust (“Landlord”)
and Lightspace Corporation, a Delaware corporation (“Tenant”).

 

The parties to this instrument hereby agree with each other as follows:

 

ARTICLE I

SUMMARY OF BASIC LEASE PROVISIONS

 

1.1           INTRODUCTION

 

As further supplemented in the balance of this instrument and its
Exhibits, the following sets forth the basic terms of this Lease, and, where
appropriate, constitutes definitions of certain terms used in this Lease.

 

1.2           BASIC DATA

 

	
  Date:

  	
   

  	
  April
         , 2006

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Landlord:

  	
   

  	
  John J. Flatley and
  Gregory D. Stoyle,

  	
   

  	
   

  
	
   

  	
   

  	
  Trustees of The Schrafft’s
  Nominee Trust

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Present Mailing Address

  	
   

  	
   

  	
   

  	
   

  
	
  of Landlord:

  	
   

  	
  The Flatley Company

  50 Braintree Hill Office Park

  Braintree, MA 02184

  Attn: Commercial/Industrial Division

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Payment Address:

  	
   

  	
  The Flatley Company

  The Schrafft Center

  529 Main Street

  Charlestown, MA 02129

  Attn: Management Office

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tenant:

  	
   

  	
  Lightspace Corporation

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Mailing Address of

  	
   

  	
   

  	
   

  	
   

  
	
  Tenant:

  	
   

  	
  Lightspace Corporation

  The Schrafft Center

  529 Main Street

  Charlestown, MA 02129

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Billing Address:

  	
   

  	
  Lightspace Corporation

  	
   

  	
   

  

 

 

4

 

	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The Schrafft Center

  529 Main Street

  Charlestown, MA 02129

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Premises:

  	
   

  	
  Suite Number 330
  consisting of approximately 18,700 square feet of space located on the third
  (3rd) floor of The Schrafft Center, 529 Main Street, Charlestown,
  MA 02129.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lease Term:

  	
   

  	
  Five (5) years and one (1)
  month.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Term Commencement Date:

  	
   

  	
  May 1, 2006.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Base Rent:

  	
   

  	
  During the period
  commencing May 1, 2006 continuing
  through and including May 31, 2007, at the rate of $187,000.00 per annum
  ($15,583.33 per month); and

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  during the period
  commencing June 1, 2007 continuing through and including May 31, 2008, at the
  rate of $303,875.00 per annum ($25,322.92 per month); and

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  during the period commencing
  June 1, 2008 continuing through and including May 31, 2009, at the rate of
  $322,575.00 per annum ($26,881.25 per month); and

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  during the period
  commencing June 1, 2009 continuing through and including May 31, 2011, at the
  rate of $341,275.00 per annum ($28,439.58 per month).

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Rent Commencement Date:

  	
   

  	
  May 1, 2006, subject to Section 4.1(e) of this Lease.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Rent Allowance:

  	
   

  	
  $28,544.79, in accordance with
  Section 4.1(e) of this Lease.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Security Deposit:

  	
   

  	
  $100,000.00.

  	
   

  	
   

  

 

 

5

 

	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Guarantor of Tenant’s

  	
   

  	
   

  	
   

  	
   

  
	
  Obligations:

  	
   

  	
  None.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Permitted Use:

  	
   

  	
  General business office, including light research and development, assembly and repair of
  products, and for no other purpose or purposes.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tenant’s Proportionate

  	
   

  	
   

  	
   

  	
   

  
	
  Share:

  	
   

  	
  shall be based on the
  fraction:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Square
  Footage of Tenant’s Premises

  	
   

  	
  17,000 =
  .0279

  
	
  Aggregate
  of All the Rentable Square Footage

  	
   

  	
  609,536

  
	
  (whether
  or not rented or improved within the entire Building)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Additional Rent:

  	
   

  	
  (i) Operating Expense
  Base: The Operating Costs for the Building and Lot for Fiscal Year ending
  December 2006.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii) Real Estate Tax Base:
  Real Estate Taxes for the Building and Lot for the City of Boston Fiscal Year
  ending June 30, 2007.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tenant’s Insurance

  	
   

  	
   

  	
   

  	
   

  
	
  Requirements:

  	
   

  	
  Commercial General
  Liability: ONE MILLION AND 00/100
  ($1,000,000.00) Dollars for injury to one person, ONE MILLION AND 00/100 ($1,000,000.00) Dollars
  for injury to more than one person, per incident.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Property Damage: ONE MILLION AND 00/100 ($1,000,000.00) Dollars
  per incident.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.3

  	
   

  	
  ENUMERATION OF EXHIBITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit A:

  	
   

  	
  Plan showing the Premises.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit B:

  	
   

  	
  Description of Landlord’s
  work.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit C:

  	
   

  	
  Term Commencement Date
  Agreement

  	
   

  	
   

  
							

 

 

ARTICLE II

DESCRIPTION OF PREMISES AND APPURTENANT

RIGHTS

 

 

6

 

2.1           LOCATION OF PREMISES

 

The Landlord hereby leases to Tenant, and Tenant hereby accepts from
Landlord, the premises (the “Premises”) described as Suite Number 330 on the third
(3rd) floor in Landlord’s building (the “Building”) located at The
Schrafft Center, 529 Main Street, Charlestown, MA 02129 consisting of
approximately 18,700 square feet of space as identified on Exhibit A.  Nothing in Exhibit A shall be treated as a
representation that the Premises or the Building shall be precisely of the
area, dimensions, or shapes as shown, it being the intention of the parties
only to show diagrammatically, rather than precisely, on Exhibit A the layout
of the Premises and the Building.

 

 

2.2           APPURTENANT RIGHTS
AND RESERVATIONS

 

Tenant shall have, as appurtenant to the Premises, rights to use in
common with others entitled thereto the common facilities included in the
Building or the land on which the Building is located (the “Lot”), including
common walkways, driveways, lobbies, hallways, ramps, stairways and elevators,
necessary for access to said Premises and lavatories nearest thereto.  Such rights shall always be subject to
reasonable rules and regulations from time to time established by Landlord by
suitable notice, and to the right of Landlord to designate and to change from
time to time the areas and facilities so to be used, provided that such changes
do not unreasonably interfere with the use of the Premises for the Permitted
Use.

 

Not included in the Premises are the roof or ceiling, the floor and all
perimeter walls of the space identified in Exhibit A, except the inner surfaces
thereof and the perimeter doors and windows. 
The Landlord reserves the right to install, use, maintain, repair and
replace in the Premises (but in such manner as not unreasonably to interfere
with Tenant’s use of the Premises) utility lines, shafts, pipes, and the like,
in, over and upon the Premises, provided that the same are located above the
dropped ceiling (or, if there is no dropped ceiling, then within three (3) feet
of the roof deck), below the floor surfaces or tight against demising walls or
columns.  Landlord agrees to repair any
damage to the Premises caused by the installation of any such items.  Such utility lines, shafts, pipes and the
like shall not be deemed part of the Premises under this Lease.  The Landlord also reserves the right to alter
or relocate any common facility and to change the lines of the Lot.

 

ARTICLE III

TERM OF LEASE:  CONDITION OF
PREMISES

 

3.1           TERM OF LEASE

 

The term of this Lease shall be the period specified in Section 1.2
hereof as the “Lease Term” commencing upon the Term Commencement Date specified
in Section 1.2.  Promptly upon the
determination of the date constituting the Term Commencement Date, the parties
hereto shall enter into a term commencement date agreement substantially in the
form of Exhibit C attached hereto and made a part hereof.

 

7

 

3.2                                 CONDITION OF
PREMISES

 

(a)           Landlord shall
Substantially Complete the Premises and prepare same for occupancy by Tenant in
accordance with Landlord’s work as set forth in Exhibit “B” attached
hereto.  “Substantially Complete” shall
mean that Landlord has completed the work set forth in Exhibit “B” to the
extent that only minor details of construction (so-called “punch list” items)
and minor mechanical adjustments remain to be done in the Premises.  Landlord shall use its best efforts to
Substantially Complete the Premises on or before the Term Commencement Date,
provided that no subsequent changes are made to the scope of work and
specifications set out in Exhibit “B”. 
If Landlord is delayed in the performance of this work because of
strikes, labor difficulties, inability to obtain materials, fire, governmental
regulations, or any other circumstances beyond its control, then such schedule
of completion, will be postponed for a period of time equal to the delay thus
incurred.  Failure on the part of the
Landlord to provide occupancy as herein described shall not constitute a breach
or default on the part of the Landlord under this Lease or give rise to any
claims of damage or expenses of any kind against the Landlord by Tenant, either
direct or consequential.  In the event
Tenant is unable to occupy the Premises on the Term Commencement Date because
of Landlord but not Tenant, Landlord shall adjust the Rent, the Term
Commencement Date and the Term Expiration Date to reflect the date of Tenant’s
later occupancy.  Landlord shall not
adjust the Rent, the Term Commencement Date or the Term Expiration Date in the
event such delay of Landlord’s work is caused by Tenant.

 

                Notwithstanding
the foregoing, if Tenant’s personnel shall occupy all or any part of the
Premises for the conduct of its business prior to the Term Commencement Date as
determined pursuant to the preceding paragraph, such date of occupancy shall,
for all intents and purposes of this Lease, be the Term Commencement Date.  Provided the Lease is
fully-executed by both parties, the Landlord shall allow Tenant access to the
Premises on a pre-scheduled basis prior to the Term Commencement Date, for
purposes of setting up and installing its communication wiring, setting up
furniture and equipment, provided Tenant coordinates such set-up and
installation with Landlord to minimize interference with Landlord’s Work (as
hereinafter defined).

 

ARTICLE IV

RENT

 

4.1           RENT PAYMENTS

 

The Base Rent (at the rates specified in Section 1.2 hereof) and the
additional rent or other charges payable pursuant to this Lease (collectively
the “Rent”) shall be payable by Tenant to Landlord at the Payment Address or
such other place as Landlord may from time to time designate by notice to
Tenant without any demand whatsoever 

 

 

8

 

except as otherwise specifically provided in this Lease and without any
counterclaim, offset or deduction whatsoever.

 

(a)           Commencing on the
Rent Commencement Date, Base Rent and the monthly installments of Tenant’s
Proportionate Share of the Taxes and Tenant’s Proportionate Share of Operating
Expenses shall be payable in advance on the first day of each and every
calendar month during the term of this Lease. 
If the Rent Commencement Date falls on a day other than the first day of
a calendar month, the first payment which Tenant shall make shall be made on
the Rent Commencement Date and shall be equal to a proportionate part of such
monthly Rent for the partial month from the Rent Commencement Date to the first
day of the succeeding calendar month.  As
used in this Lease, the term “lease year” shall mean any twelve (12) month
period commencing on the Rent Commencement Date; provided, however, if the Rent
Commencement Date does not fall on the first day of a month, then the term “lease
year” shall mean any twelve month period commencing on the first day of the
month immediately following the Rent Commencement Date, in which event the
first lease year shall also include the partial month containing the Rent
Commencement Date.

 

(b)           Base Rent and the
monthly installments of Tenant’s Proportionate Share of the Taxes and Tenant’s
Proportionate Share of Operating Expenses for any partial month shall be paid
by Tenant to Landlord at such rate on a pro  rata basis.  Any other charges payable by Tenant on a
monthly basis, as hereinafter provided, shall likewise be prorated.

 

(c)           Rent not paid when
due shall bear interest at a rate (the “Lease Interest Rate”) equal to the
lesser of (i) the so-called base rate of interest charged from time to time by
Bank of America, Boston, Massachusetts, plus three percent (3%) per
annum or (ii) the maximum legally permissible rate, from the due date until
paid.

 

(d)           Rent for the first
full month of the initial term for which rent is due shall be paid by Tenant
upon the execution of this Lease.

 

                (e)  Landlord shall grant Tenant a rent allowance
in the amount of Twenty-Eight Thousand Five Hundred Forty-Four and 79/100
($28,544.79) Dollars (“Rent Allowance”) to be applied to Tenant’s account in
two (2) installments as follows:  (i) the
first (1st) installment in the amount of Fifteen Thousand Eight
Hundred Eighty-Three and 33/100 ($15,883.33) Dollars shall be applied to Tenant’s
monthly installment of Base Rent due on May 1, 2006; and (ii) provided no Event
of Default has occurred under this Lease, the second (2nd)
installment in the amount of Twelve Thousand Six Hundred Sixty-One and 46/100
($12,661.46) Dollars shall be applied to Tenant’s monthly installment of Base
Rent due on June 1, 2007.

 

4.2           REAL ESTATE TAX

 

(a)           The term “Taxes”
shall mean all taxes and assessments (including without limitation, assessments
for public improvements or benefits and water and sewer use charges), and other
charges or fees in the nature of taxes for municipal 

 

 

9

 

services which at any time during or in respect of the Lease Term may
be assessed, levied, confirmed or imposed on or in respect of, or be a lien
upon, the Building and the Lot, or any part thereof, or any rent therefrom or
any estate, right, or interest therein, or any occupancy, use, or possession of
such property or any part thereof, and ad valorem taxes for any personal
property used in connection with the Building or Lot.  Without limiting the foregoing, Taxes shall
also include any payments made by Landlord in lieu of taxes.  The Landlord agrees that Tenant’s share of
any special assessment shall be determined (whether or not Landlord avails
itself of the privilege so to do) as if Landlord had elected to pay the same in
installments over the longest period of time permitted by applicable law and
Tenant shall be responsible only for those installments (including interest
accruing and payable thereon) or parts of installment that are attributable to
periods within the Lease Term.

 

Should the Commonwealth of Massachusetts, or any political subdivision
thereof, or any other governmental authority having jurisdiction over the
Building, (1) impose a tax, assessment, charge or fee, which Landlord shall be
required to pay, by way of substitution for or as a supplement to such Taxes,
or (2) impose an income or franchise tax or a tax on rents in substitution for
or as a supplement to a tax levied against the Building or the Lot or any part
thereof and/or the personal property used in connection with the Building or
the Lot or any part thereof, all such taxes, assessments, fees or charges (“Substitute
Taxes”) shall be deemed to constitute Taxes hereunder.  Taxes shall also include, in the year paid,
all fees and costs incurred by Landlord in seeking to obtain a reduction of, or
a limit on the increase in, any Taxes, regardless of whether any reduction or
limitation is obtained.  Except as
hereinabove provided with regard to Substitute Taxes, Taxes shall not include
any inheritance, estate, succession, transfer, gift, franchise, income or
capital stock tax.

 

(b)           The Tenant shall pay
to Landlord, as additional rent, Tenant’s Proportionate Share of the Taxes
assessed against the Building and Lot which exceeds Tenant’s Real Estate Tax
Base during any tax year (i.e., July 1 through June 30, as the same may change
from time to time) during the Lease Term.

 

Effective July 1, 2007, Tenant
shall pay monthly, at the time when Rent payments are due hereunder, an amount
equal to one-twelfth (1/12th) of the total of annual Taxes (as estimated
by Landlord) due from Tenant to Landlord pursuant to this Article 4.2(b).  Promptly after the determination by any
taxing authority of Taxes upon the Building and Lot for each tax year, Landlord
shall make a determination of the Taxes allocated to the Premises, and if the
aforesaid payments theretofore made for such tax year by Tenant exceed the
Taxes allocated to the Premises, such overpayment shall be credited against the
payments thereafter to be made by Tenant pursuant to this paragraph; and if the
Taxes allocated to the Premises for such tax year are greater than such
payments theretofore made on account for such tax year, Tenant shall within ten
(10) days of written notice from the Landlord make a suitable payment to
Landlord.  Copies of tax bills submitted
by Landlord with any such statement shall be conclusive evidence of the amount
of Taxes charged, assessed or imposed.  After the full assessment year, the initial
monthly payment on account of the Taxes allocated to the Premises shall be
replaced each year by a payment, which is one-twelfth (1/12th) of the
Taxes allocated to the Premises for the immediately preceding tax year.

 

 

10

 

(c)           If any Taxes, with
respect to which Tenant shall have paid Tenant’s Proportionate Share, shall be
adjusted to take into account any abatement or refund, Tenant shall be entitled
to a credit against rental obligations hereunder, in the amount of Tenant’s
Proportionate Share of such abatement or refund less Landlord’s costs or
expenses, including without limitation appraiser’s and attorneys’ fees, of
securing such abatement or refund or, if the Lease Term has expired and Tenant
has no outstanding monetary obligations to Landlord, Landlord shall promptly
pay such amount to Tenant. The Tenant shall not apply for any real estate tax
abatement without the prior written consent of Landlord.

 

(d)           Tenant shall pay or
cause to be paid, prior to delinquency, any and all taxes and assessments
levied upon all trade fixtures, inventories and other personal property placed
in and upon the Premises by Tenant.

 

4.3           TENANT’S SHARE OF
OPERATING COSTS

 

(a)           Operating Costs.  If, in any calendar year of the term of this
Lease, Landlord’s Operating Costs exceed the Operating Expense Base, as it
relates to all other charges with the exception of snow removal, which shall be
an amount representative of the average of Landlord’s
actual snow removal cost over the previous five (5) year period.  Tenant shall after notice as hereinafter
provided, pay to Landlord as additional rent, an amount equal to the product of
(a) such excess multiplied by (b) a fraction involving the same numerator and
denominator as is provided for in Article 1.2, namely Basic Data, of this
Lease.

 

Effective January 1, 2007, Tenant shall pay monthly, at the time when
Rent payments are due hereunder, an amount equal to one-twelfth (1/12th)
of the total annual Operating Costs (as estimated by Landlord) due from Tenant
to Landlord pursuant to Article 4.3 of this Lease.  Promptly after the end of each calendar year
thereafter, Landlord shall make a determination of Tenant’s share of such
Operating Costs; and if the aforesaid payments theretofore made for such period
by Tenant exceed Tenant’s share, such overpayment shall be credited against the
payments thereafter to be made by Tenant pursuant to this Paragraph; and if
Tenant’s share is greater than such payments theretofore made on account for
such period, Tenant shall within thirty (30) days of written notice from the
Landlord make a suitable payment to Landlord.

 

The initial monthly payment on account of the Operating Costs shall be
replaced after Landlord’s determination of Tenant’s share thereof for the
preceding accounting period by a payment which is one-twelfth (1/12th) of
Tenant’s actual share thereof for the immediately preceding period, with
adjustments as appropriate where such preceding period is less than a full
twelve-month period.  Landlord
shall have the same rights and remedies for non-payment by Tenant of any
such amounts due on account of such Operating Costs as Landlord has hereunder,
for the failure of Tenant to pay rent as provided for in Article 14 of this
Lease.

 

As used in this Lease, the term “Operating Costs” shall mean all costs
and 

 

 

11

 

expenses incurred by Landlord in connection with the operation,
insuring, repair, equipping, maintenance, replacement, management and cleaning
(collectively, “the Operation”) of the Building, the Building heating,
ventilating, electrical, plumbing, and other systems and the Lot (collectively,
“the Property”), including, without limitation, the following:

 

(1)           All expenses
incurred by Landlord or Landlord’s agents which shall be directly related to
employment of personnel, including amounts incurred for wages, salaries and
other compensation for services, payroll, social security, unemployment and
similar taxes, worker’s compensation insurance, disability benefits, pensions,
hospitalization, retirement plans and group insurance, uniforms and working
clothes and the cleaning thereof, and expenses imposed on Landlord or Landlord’s
agents pursuant to any collective bargaining agreement for the services of
employees of Landlord or Landlord’s agents in connection with the Operation of
the Property, and its mechanical systems including, without limitation, day and
night supervisors, property manager, accountants, bookkeepers, janitors,
carpenters, engineers, mechanics, electricians and plumbers and personnel
engaged in supervision of any of the persons mentioned above; provided that, if
any such employee is also employed on other properties of Landlord such compensation
shall be suitably prorated among the Property and such other properties;

 

                (2)           The cost of services, materials and
supplies furnished or used in the Operation of the Property, including, without
limitation, the cost to perform Landlord’s obligations under Sections 8.2 and
9.1 of this Lease;

 

 

(3)           The amounts paid to
managing agents and for legal and other professional fees relating to the
Operation of the Property, but excluding such fees paid in connection with (x)
negotiations for or the enforcement of leases; and (y) seeking abatements of
Taxes; provided, however, that management fees shall not exceed prevailing
market rates;

 

(4)           Insurance premiums
and the positive difference, if any, between the amounts of what the insurance
premiums would be if such insurance were maintained without deductibles over
the actual premiums for such policies;

 

(5)           Costs for
electricity, steam and other utilities required in the Operation of the
Property;

 

(6)           Water and sewer use
charges;

 

(7)           The costs of
snow-plowing and removal and landscaping;

 

(8)           Amounts paid to
independent contractors for services, materials and supplies furnished for the
Operation of the Property;

 

(9)           All other expenses
incurred in connection with the Operation of the Property; and

 

 

12

 

(10)         Only  such capital expenditure which reduce Operating Costs, or are for  energy conservation purposes made
by Landlord during the term of this Lease, shall be included in Operating Costs
pursuant to this Section, amortized with
reasonable interest on a useful life basis.

 

b)  Exclusions
from Operating Costs.  Notwithstanding
anything to the contrary contained in this Section 4, Operating Costs shall not
include the following:

 

              (1)           Landlord’s general corporate overhead, home office, and administrative
expenses, including wages, salaries or other compensation paid to any senior
level executives of Landlord or to any person not directly involved in the
operation, maintenance or safekeeping of the Property; and

 

                (2)           costs and expenses, overhead and
profit increment paid to subsidiaries, partners or affiliates of Landlord, or
other Landlord-related parties, and salaries and associated costs of Landlord’s
employees, for goods or services on or to the other party, to the extent only
that the costs of such goods or services exceeds competitive costs of
such goods or services were they not so rendered by a subsidiary, affiliate or
employee of Landlord.

 

4.4           INDEPENDENT
COVENANTS

 

                It is the
intention of the parties hereto that the obligations of Tenant hereunder shall
be separate and independent covenants and agreements, and that Basic Rent,
Additional Rent and all other sums payable by Tenant hereunder shall continue
to be payable in all events, and that the obligations of Tenant hereunder shall
continue unaffected, unless the requirement to pay or perform the same shall
have been terminated pursuant to the express provisions of this Lease.   Basic Rent, Additional Rent and all other
sums payable hereunder by Tenant shall be paid without notice or demand, and
without setoff, counterclaim, recoupment, abatement, suspension, deferment,
diminution, deduction, reduction or defense except as specifically set forth in
this Lease.  This Lease shall not
terminate and Tenant shall not have any right to terminate this Lease, during
the Term (except as otherwise expressly provided in this Lease).  Tenant agrees that, it shall not take any
action to terminate, rescind or avoid this Lease notwithstanding any default by
Landlord hereunder or under any other agreement between Landlord and
Tenant.  Tenant waives all rights which
are not expressly stated herein but which may now or hereafter otherwise be
conferred by law to quit, terminate or surrender this Lease or any of the
Leased Premises; to any setoff, counterclaim, recoupment, abatement,
suspension, deferment, diminution, deduction, reduction or defense of or to
Basic Rent, Additional Rent or any other sums payable under this Lease, except
as specifically set forth in this Lease and for any statutory lien {or
statutory offset right} against Landlord or its property.

 

ARTICLE V

USE OF PREMISES

 

5.1           PERMITTED USE

 

 

13

 

Tenant agrees that the Premises shall be used and occupied by Tenant
only for the purposes specified as the Permitted Use thereof in Section 1.2 of
this Lease, and for no other purpose or purposes.

 

The Tenant shall comply and shall cause its employees, agents, and
invitees to comply with such reasonable rules and regulations as Landlord shall
from time to time establish for the proper regulation of the Building and the
Lot, provided that Landlord gives Tenant reasonable advance notice thereof and
that such additional rules and regulations shall be of general application to all
the tenants in the Building, except where different circumstances justify
different treatment.

 

5.2           COMPLIANCE WITH LAWS

 

Tenant agrees that no trade or occupation shall be conducted in the
Premises or use made thereof which will be unlawful, improper, or contrary to
any law, ordinance, by-law, code, rule, regulation or order applicable in the
municipality in which the Premises are located or which will disturb the quiet
enjoyment of the other tenants of the Building. From the
Term Commencement  Date, Tenant
shall obtain any and all approvals, permits, licenses, variances and the like
from governmental or quasi-governmental authorities, including without
limitation any Architectural Access Board and Board of Fire Underwriters
(collectively, “Approvals”) which are required for Tenant’s use of the
Premises, including, without limitation, any which may be required for any
construction work and installations, alterations, or additions made by Tenant
to, in, on, or about the Premises; provided, however, that Tenant shall not
seek or apply for any Approvals without first having given Landlord a
reasonable opportunity to review any applications for Approvals and all
materials and plans to be submitted in connection therewith and obtaining
Landlord’s written consent.  In any
event, Tenant shall be responsible for all costs, expenses, and fees in
connection with obtaining all Approvals. 
Tenant’s inability to obtain or delay in obtaining any such Approval
shall in no event reduce, delay, or terminate Tenant’s rental, payment, and
performance obligations hereunder. From the Term Commencement
Date, Tenant shall, at its own cost and expense, (i) make all
installations, repairs, alterations, additions, or improvements to the Premises
required by any law, ordinance, by-law, code, rule, regulation or order of any
governmental or quasi-governmental authority resulting
from or arising out of Tenant’s specific use of the Premises if different from
the Permitted Use; (ii) keep the Premises equipped with all required
safety equipment and appliances resulting from or arising
out of Tenant’s specific use of the Premises if different from the Permitted
Use; and (iii) comply with all laws, ordinances, codes, rules,
regulations, and orders and the requirements of Landlord’s and Tenant’s insurers
applicable to the Premises, Building and Lot resulting
from or arising out of Tenant’s specific use of the Premises if different from
the Permitted Use.  Tenant
shall not place a load upon any floor in the Premises exceeding the lesser of
(a) the floor load per square foot of area, which such floor was designed to
carry as certified by Landlord’s architect and (b) the floor load per square
foot of area, which is allowed by law. 
Landlord reserves the right to prescribe the weight and position of all
business machines and mechanical equipment, including safes, which shall be
placed so as to distribute the weight.

 

 

14

 

5.3           INSURANCE RISKS

 

Tenant shall not permit any use of the Premises which will make voidable
or, unless Tenant pays the extra insurance premium attributable thereto as
provided below, increase the premiums for any insurance on the Building or on
the contents of said property or which shall be contrary to any law or
regulation from time to time established by the New England Fire Insurance
Rating Association (or any successor organization) or which shall require any
alteration or addition to the Building. 
Tenant shall, within thirty (30) days after written demand therefor,
reimburse Landlord and all other tenants for the costs of all extra insurance
premiums caused by Tenant’s use of the Premises.  Any such amounts shall be deemed to be
additional rent hereunder.

 

5.4           ELECTRICAL EQUIPMENT

 

The Tenant shall not, without Landlord’s written consent in each
instance, connect to the electrical distribution system any fixtures,
appliances, or equipment which will operate individually or collectively at a
wattage in excess of the capacity of the electrical system serving the Premises
which Landlord represents and warrants is
sufficient for ordinary office use, as the same may be reasonably
determined by Landlord and Landlord may audit Tenant’s use of electric power to
determine Tenant’s compliance herewith. 
If Landlord, in its sole discretion, permits such excess usage, Tenant
will pay for the cost of such excess power as additional rent, together with
the cost of installing any additional risers, meters, or other facilities that
may be required to furnish or measure such excess power to the Premises.

 

5.5           TENANT’S OPERATIONAL
COVENANTS

 

(a)           Affirmative
Covenants

 

In regard to the use and occupancy of the Premises, Tenant will at its
expense: (1) keep the inside of all glass in the doors and windows of the
Premises reasonably clean; (2) replace promptly any cracked or broken glass of
the Premises with glass of like kind and quality; (3) maintain the Premises in
a clean, orderly and sanitary condition and free of insects, rodents, vermin
and other pests; (4) keep any garbage, trash, rubbish or other refuse in
vermin-proof containers within the interior of the Premises until removed; (5)
keep all mechanical apparatus free of vibration and loud noise which may be
transmitted beyond the Premises; and (6) comply with and observe all rules and
regulations reasonably established by Landlord from time to time.

 

(b)           Negative Covenants

 

In regard to the use and occupancy of the Premises and common areas,
Tenant will not: (7) place or maintain any trash, refuse or other articles in
any vestibule or entry of the Premises, on the sidewalks or corridors adjacent
thereto or elsewhere on the exterior of the Premises so as to obstruct any
corridor, stairway, sidewalk or common area; (8) permit undue accumulations of
or burn garbage, trash, rubbish or other refuse within or without the Premises;
(9) cause or permit objectionable odors to emanate or to be dispelled from the
Premises; or (10) commit, 

 

 

15

 

or suffer to be committed, any waste upon the Premises or any public or
private nuisance or other act or thing which may disturb the quiet enjoyment of
any other tenant or occupant of the Building, or use or permit the use of any
portion of the Premises for any unlawful purpose; (11) park trucks or other
vehicles in a manner that will block access to the loading docks serving the
Building.

 

5.6           SIGNS, BLINDS and
DRAPES

 

Tenant shall not place any signs on the exterior of the Building or on
or in any window, public corridor or door visible from the exterior of the
Premises.  No drapes or blinds may be put
on or in any window nor may any Building drapes or blinds be removed by Tenant.

 

5.7           HAZARDOUS MATERIALS

 

The Tenant shall not use, handle, store or dispose of any oil,
hazardous or toxic substances, materials or wastes (collectively “Hazardous
Materials”) in, under, on or about the Property except for such storage and use
consented to by Landlord in advance which consent may be withheld in Landlord’s
sole and absolute discretion.  Any
Hazardous Materials in the Premises and all containers therefor, shall be used,
kept, stored and disposed of in conformity with all applicable laws,
ordinances, codes, rules, regulations and orders of governmental
authorities.  If the transportation,
storage, use or disposal of Hazardous Materials anywhere on the Property in
connection with Tenant’s use of the Premises results in (1) contamination of
the soil or surface or ground water or (2) loss or damage to person(s) or
property, then Tenant agrees (i) to notify Landlord immediately of any contamination,
claim of contamination, loss or damage, (ii) after consultation with and
approval by Landlord, to clean up all contamination in full compliance with all
applicable statutes, regulations and standards, and (iii) to indemnify, defend
and hold Landlord harmless from and against any claims, suits, causes of
action, costs and fees, including, without limitation, attorneys’ fees, arising
from or connected with any such contamination, claim of contamination, loss or
damage.  This provision shall survive the
termination of this Lease.  No consent or
approval of Landlord shall in any way be construed as imposing upon Landlord
any liability for the means, methods, or manner of removal, containment or
other compliance with applicable law for and with respect to the
foregoing.  The terms of this Section 5.7
shall apply to any transportation, storage, use or disposal of Hazardous
Materials irrespective of whether Tenant has obtained Landlord’s consent
therefor but nothing in this Lease shall limit or otherwise modify the
requirement of obtaining Landlord’s prior consent as set forth in the first
sentence of this Section 5.7.

 

ARTICLE VI

INSTALLATIONS, ALTERATIONS, AND ADDITIONS

 

6.1           INSTALLATIONS,
ALTERATIONS, AND ADDITIONS

 

Tenant shall not make structural installations, alterations, or
additions to the Premises, but may make nonstructural installations,
alterations or additions provided 

 

16

 

that Landlord consents thereto in advance and in writing.  In any event, Tenant shall not demolish the
existing office space in the Premises, without the prior written approval of
Landlord, which approval may be withheld in Landlord’s sole and absolute
discretion.  In no event shall Landlord’s
approval of any proposed installations, alterations, or additions to the
Premises, whether in connection with Tenant’s initial leasehold improvements or
otherwise, constitute a representation by Landlord that such work complies with
the requirements of any applicable law or regulation, including without
limitation the requirements of the ADA. 
Any installations, alterations, or additions made by Tenant shall be at
Tenant’s sole cost and expense and shall be done in a good and workmanlike
manner using materials of a quality at least equivalent to that of the existing
improvements and in compliance with the requirements of Section 5.2; and prior
to Tenant’s use of the Premises, after the performance of any such work, Tenant
shall procure certificates of occupancy and any other required certificates.  Tenant shall not suffer or permit any
mechanics’ or similar liens to be placed upon the Premises for labor or
materials furnished to Tenant or claimed to have been furnished to Tenant in
connection with work of any character performed or claimed to have been
performed at the direction of Tenant, and shall cause any such lien to be
released of record forthwith without cost to Landlord.  Any and all Tenant installations,
alterations, and additions, in or to the Premises, that are intended to become
or do become part of the real estate or fixtures therein (other than trade
fixtures that are readily removable without damage to the Premises) including
but not limited to equipment, appliances, and machinery, shall be fully paid
for and free and clear of any and all chattel mortgages, conditional bills of
sale, security interests, or any liens or encumbrances of any kind or
nature.  At all times when any
installation, alteration, or addition by Tenant is in progress, there shall be
maintained, at Tenant’s cost and expense, insurance meeting the requirements of
Section 11.3 below and certificates of insurance evidencing such coverage shall
be furnished to Landlord prior to the commencement of any such work.  Any installations, alterations or additions
made by Tenant to the Premises, including, without limitation, all utility
systems, fixtures, machinery, equipment, and appliances installed in connection
therewith, other than movable personal property, and any and all computer and
telecommunications wiring or cabling affixed, embedded or installed in or
behind any walls, columns, shafts, floors or ceilings of the Premises or
Building (collectively, the “Cabling”), shall become the property of Landlord
at the termination or expiration of this Lease, unless Landlord requires, at
the time of Landlord’s approval of such work, Tenant to remove any of the same,
in which event Tenant shall, at its own cost and expense, comply with such
requirement.  Additionally, at Landlord’s
option, Tenant shall remove such installations, alterations, additions,
systems, fixtures, machinery, equipment, appliances and Cabling as Landlord may
request: however, Tenant shall not be required to remove any addition or
improvement to the Premises or the Building if Landlord has specifically agreed
in writing that the improvement, addition or Cabling in question need not be
removed.  Tenant shall repair all damage
caused by such removal.  All items not so
removed shall, at Landlord’s option, be deemed to have been abandoned by Tenant
and Landlord shall have the rights set forth in Section 14.1(f) below with
respect thereto.  The provisions of this
Article VI shall survive the end of the Lease Term.

 

It is further agreed and understood that at the termination of this
Lease or any 

 

17

 

extensions thereof, Tenant shall have restored the Premises to good
repair, order and condition in all respects, including but not limited to
repair of all floor surfaces damaged by the removal of partitions, machinery and
equipment, and shall restore all floor areas to a good condition and repair,
using materials to provide a consistent floor surface, satisfactory to
Landlord; and shall have cleaned and removed accumulations of dirt and
particles, oils, grease, and discolorations from all surfaces resulting from
Tenant’s processes and shall leave the Premises broom clean.

 

ARTICLE VII

ASSIGNMENT AND SUBLETTING

 

7.1           PROHIBITION

 

Notwithstanding any other provision of this Lease, Tenant shall not,
directly or indirectly, assign, mortgage, pledge or otherwise transfer,
voluntarily or involuntarily, this Lease or any interest herein or sublet  (which term without limitation, shall include
granting of concessions, licenses, and the like) or allow any other person or
entity to occupy the whole or any part of the Premises, without, in each
instance, having first received the express consent of Landlord, which consent
may not be unreasonably withheld or delayed. 
Any assignment of this Lease or subletting of the whole or any part of
the Premises (other than as permitted to a subsidiary or a controlling
corporation as set forth below) by Tenant without Landlord’s express consent
shall be invalid, void and of no force or effect.  This prohibition includes, without
limitation, any assignment, subletting, or other transfer which would occur by
operation of law, merger, consolidation, reorganization, acquisition, transfer,
or other change of Tenant’s corporate or proprietary structure, including a
change in the partners of any partnership, and the sale, pledge, or other
transfer of any of the issued or outstanding capital stock of any corporate
Tenant (unless such stock is publicly traded on a recognized security exchange
or over-the-counter market).  Any request
for consent under this Section 7.1 shall set forth, in detail reasonably
satisfactory to Landlord, the identification of the proposed assignee or
sublessee, its financial condition and the terms on which the proposed
assignment or subletting is to be made, including, without limitation, the rent
or any other consideration to be paid in respect thereto and such request shall
be treated as Tenant’s warranty in respect of the information submitted
therewith.

 

In any case where Landlord shall consent to any assignment or
subletting, Tenant originally named herein shall remain fully liable for Tenant
obligations hereunder, including, without limitation, the obligation to pay the
rent and other amounts provided under this Lease and such liability shall not
be affected in any way by any future amendment, modification, or extension of
this Lease or any further assignment, other transfer, or subleasing and Tenant
hereby irrevocably consents to any and all such transactions.  Tenant agrees to pay to Landlord, within
fifteen (15) days of billing therefor, all reasonable legal and other
out-of-pocket expenses incurred by Landlord in connection with any request to
assign or sublet not to exceed $1,000.00 per transaction.  It shall be a condition of the
validity of any permitted assignment or subletting that the assignee or
sublessee agree directly with Landlord, in form satisfactory to Landlord, to be
bound by all Tenant obligations hereunder, including, 

 

18

 

without limitation, the obligation to pay all Rent and other amounts
provided for under this Lease and the covenant against further assignment or
other transfer or subletting.

 

Without limiting Landlord’s discretion to grant or withhold its consent
to any proposed assignment or subletting, if Tenant requests Landlord’s consent
to assign this Lease or sublet all or any portion of the Premises, Landlord
shall have the option, exercisable by notice to Tenant given within thirty (30)
days after Landlord’s receipt of such request, to terminate this Lease as of
the date specified in such notice which shall be not less than thirty (30) nor
more than sixty (60) days after the date of such notice for the entire
Premises, in the case of an assignment or subletting of the whole, and for the
portion of the Premises, in the case of a subletting of a portion.  In the event of termination in respect of a
portion of the Premises, the portion so eliminated shall be delivered to
Landlord on the date specified in good order and condition in the manner
provided in Section 8.1 at the end of the Lease Term and thereafter, to the
extent necessary in Landlord’s judgment, Landlord, at Tenant’s sole cost and
expense, may have access to and may make modification to the Premises so as to
make such portion a self-contained rental unit with access to common areas,
elevators and the like. Rent and Tenant’s Proportionate Share shall be adjusted
according to the extent of the Premises for which this Lease is
terminated.  Without limitation of the
rights of Landlord hereunder in respect thereto, if there is any assignment of
this Lease by Tenant for consideration or a subletting of the whole of the
Premises by Tenant at a rent which exceeds the rent payable hereunder by
Tenant, or if there is a subletting of a portion of the Premises by Tenant at a
rent in excess of the subleased portion’s pro  rata share of the
Rent payable hereunder by Tenant, then Tenant shall pay to Landlord, as
additional rent, forthwith upon Tenant’s receipt of the consideration (or the
cash equivalent thereof) therefor, in the case of an assignment, and in the
case of a subletting, fifty percent (50%) of the amount of any such excess rent
less Tenant’s reasonable verified
direct costs and expenses incurred in reletting or assigning the Premises,
including without limitation fees paid to brokers, attorneys and the cost of
tenant improvements.  The provisions of this paragraph shall apply
to each and every assignment of this Lease and each and every subletting of all
or a portion of the Premises, whether to a subsidiary or controlling
corporation of Tenant or any other person, firm or entity, in each case on the
terms and conditions set forth herein. 
For the purposes of this Section 7.1, the term “rent” shall mean all
rent, additional rent or other payments and/or consideration payable by one
party to another for the use and occupancy of all or a portion of the Premises.

 

The requirement of Landlord’s prior consent and Landlord’s recapture
right shall not, however, be applicable to an assignment of this Lease by
Tenant to a subsidiary (for such period of time as at least 50% of the stock of
such subsidiary continues to be owned by Tenant, it being agreed that the
subsequent sale or transfer of the stock of such subsidiary (either
individually or in the aggregate) resulting in Tenant owning less than 50% of
the stock of such subsidiary shall be treated as if such sale or transfer were,
for all purposes, an assignment of this Lease governed by the provisions of
this Section 7.1) or controlling corporation, provided (and it shall be a
condition of the validity of any such assignment) that such subsidiary or
controlling corporation 

 

19

 

agree directly with Landlord to be bound by all of the obligations of
Tenant hereunder, including, without limitation, the obligation to pay the rent
and other amounts provided for under this Lease, the covenant to use the
Premises only for the purposes specifically permitted under this Lease and the
covenant against further assignment; but such assignment shall not relieve
Tenant herein named of any of its obligations hereunder, and Tenant shall
remain fully liable therefor.  Further,
Landlord’s consent shall not be required for an assignment of this Lease in
connection with a transfer of substantially all operations of Tenant to another
entity by way of merger, consolidation or sale of substantially all of the
stock therein or assets thereof, provided that at the time of such assignment
such entity has a net worth at least equal to that of Tenant or any guarantor
on the date hereof or on the date of such assignment, whichever is greater.

 

7.2           ACCEPTANCE OF RENT
FROM TRANSFEREE

 

The acceptance by Landlord of the payment of Rent, additional rent, or
other charges following assignment, subletting, or other transfer prohibited by
this Article VII shall not be deemed to be a consent by Landlord to any such
assignment, subletting, or other transfer, nor shall the same constitute a
waiver of any right or remedy of Landlord.

 

 

 

ARTICLE VIII

REPAIRS AND MAINTENANCE

 

8.1           TENANT OBLIGATIONS

 

From and after the date that possession of the Premises is delivered to
Tenant and until the end of the Lease Term, Tenant shall keep the Premises and
every part thereof in good order, condition, and repair, reasonable wear and
tear and damage by casualty, as a result of condemnation, or as a result of the
failure of Landlord to provide services required to be provided hereunder only
excepted; and shall return the Premises to Landlord at the expiration or
earlier termination of the Lease Term in such condition.

 

8.2           LANDLORD OBLIGATIONS

 

Except as may be provided in Articles XII and XIII, Landlord agrees to
keep in good order, condition, and repair the structural components and the
roof of the Building, the common utility and Building systems, the common
hallways, entrances, restrooms and elevators, the paved surface of the parking
areas serving the Building and the sprinkler system, except that Tenant shall
reimburse Landlord, as additional rent hereunder, for the costs of maintaining,
repairing, or otherwise correcting  any
condition caused by an act, omission, neglect or default under this Lease of
Tenant or any employee, agent, or contractor of Tenant or any other party for
whose conduct Tenant is responsible. 
Without limitation, Landlord shall not be responsible to make any
improvements or repairs other than as expressly provided in this Section 8.2,
and 

 

 

20

 

Landlord shall not be liable for any failure to make such repairs
unless Tenant has given notice to Landlord of the need to make such repairs and
Landlord has failed to commence to make such repairs within a reasonable time
thereafter.

ARTICLE IX

SERVICES TO BE FURNISHED BY LANDLORD;

UTILITIES

 

9.1           LANDLORD’S SERVICES

 

The Landlord shall provide all Tenant’s water and sewer use and
reasonable heating and air-conditioning which
Landlord represents and warrants is sufficient for ordinary office use, during
the normal heating and cooling season between the hours of 8:00 A.M. and 6:00
P.M., during normal business days.  The
normal cooling season shall be from April 15th to October lst of any given
year.  Normal business days are all days
except Saturday, Sunday, New Year’s Day, Memorial Day, July 4th, Labor Day, Columbus
Day, Thanksgiving Day, Christmas Day (and the following day when any such day
occurs on Sunday) and such other days as Landlord presently or in the future
recognizes as holidays for Landlord’s general office staff.  In addition, Landlord agrees to furnish elevator
service and to light passageways and stairways during business hours, and to
furnish such cleaning service as is customary in similar buildings in said city
or town, all subject to interruption due to any accident, to the making of
repairs, alterations or improvements, to labor difficulties, to trouble in
obtaining fuel, electricity, service or supplies from the sources from which
they are usually obtained for said building, or to causes beyond Landlord’s
control.  If Tenant shall require air-conditioning,
heating or ventilation outside the hours and days above specified, Landlord
shall furnish such service and Tenant shall pay therefor such charges as may
from time to time be in effect.  In the
event Tenant introduces into the Premises personnel or equipment, which
overloads the capacity of the building system or in any other way interferes
with the system’s ability to perform adequately its proper functions;
supplementary systems may if and as needed at Landlord’s option, be provided by
Landlord, at Tenant’s expense.

 

9.2           CAUSES BEYOND
CONTROL OF THE LANDLORD

 

The Landlord shall in no event be liable for failure to perform any of
its obligations under this Lease when prevented from doing so by causes beyond
its reasonable control, including without limitation labor dispute, breakdown,
accident, order or regulation of or by any governmental authority, or failure
of supply, or inability by the exercise of reasonable diligence to obtain
supplies, parts, or employees necessary to furnish services required under this
Lease, or because of war or other emergency, or for any cause due to any act,
neglect, or default of Tenant or Tenant’s servants, contractors, agents,
employees, licensees or any person claiming by, through or under Tenant, and in
no event shall Landlord ever be liable to Tenant for any indirect, special or
consequential damages under the provisions of this Section 9.2 or any other
provision of this Lease.

 

9.3           SEPARATELY METERED
UTILITIES

 

 

21

 

Tenant shall pay directly to the utility, as they become due, all bills
for electricity (whether they are used for furnishing heat or for other
purposes) that are furnished to the Premises and now or hereafter separately
metered or billed by the utility to the Premises.  If any utilities used or consumed by Tenant
are not separately metered, Tenant shall pay its allocable share of such
utilities, based on use, as determined by Landlord.  Landlord at Tenant’s expense shall purchase
and install all lamps, tubes, bulbs, starters and ballasts.

 

ARTICLE X

INDEMNITY

 

10.1         THE TENANT’S
INDEMNITY

 

The Tenant shall indemnify and save harmless Landlord, the directors,
officers, agents, and employees of Landlord, against and from all claims,
expenses, or liabilities of whatever nature (a) arising directly or indirectly
from any default or breach by Tenant or Tenant’s contractors, licensees,
agents, servants, or employees under any of the terms or covenants of this
Lease (including without limitation any violation of Landlord’s Rules and
Regulations and any failure to maintain or repair equipment or installations to
be maintained or repaired by Tenant hereunder) or the failure of Tenant or such
persons to comply with any rule, order, regulation, or lawful direction now or
hereafter in force of any public authority, in each case to the extent the same
are related, directly or indirectly, to the Premises or the Building, or Tenant’s
use thereof; or (b) arising directly or indirectly from any accident, injury,
or damage, however caused, to any person or property, on or about the Premises;
or (c) arising directly or indirectly from any accident, injury, or damage to
any person or property occurring outside the Premises but within the Building
or on the Lot, where such accident, injury, or damage results, or is claimed to
have resulted, from any act, omission, or negligence on the part of Tenant, or
Tenant’s contractors, licensees, agents, servants, employees, or customers, or
anyone claiming by or through Tenant: provided, however, that in no event shall
Tenant be obligated under this clause (c) to indemnify Landlord, the directors,
officers, agents, employees of Landlord, to the extent such claim, expense, or
liability results from any omission, fault, negligence, or other misconduct of
Landlord or the officers, agents, or employees of Landlord on or about the
Premises or the Building.

 

This indemnity and hold harmless agreement shall include, without
limitation, indemnity against all expenses, attorney’s fees and liabilities
incurred in connection with any such claim or proceeding brought thereon and
the defense thereof with counsel acceptable to Landlord.  At the request of Landlord, Tenant shall
defend any such claim or proceeding directly on behalf and for the benefit of
Landlord.

 

10.2         THE TENANT’S RISK

 

The Tenant agrees to use and occupy the Premises and to use such other
portions of the Building and the Lot as Tenant is herein given the right to use
at Tenant’s sole risk; and Landlord shall have no responsibility or liability
for any loss or damage, however caused, to furnishings, fixtures, equipment, or
other personal 

 

 

22

 

property of Tenant or of any persons claiming by, through, or under
Tenant, except for loss or damage caused by the negligence
or other misconduct of Landlord’ Landlord’s agents, servants, contractors or
employees.

 

10.3         INJURY CAUSED BY
THIRD PARTIES

 

The Tenant agrees that Landlord shall not be responsible or liable to
Tenant, or to those claiming by, through, or under Tenant, for any loss or
damage resulting to Tenant or those claiming by, through, or under Tenant, or
its or their property, that may be occasioned by or through the acts or
omissions of persons occupying any part of the Building, or for any loss or
damage from the breaking, bursting, crossing, stopping, or leaking of electric
cables and wires, and water, gas, sewer, or steam pipes, or like matters, except for loss or damage caused by the negligence or other misconduct
of Landlord’ Landlord’s agents, servants, contractors or employees.

 

10.4         SECURITY

 

Tenant agrees that, in all events, Tenant is responsible for providing
security to the Premises and its own personnel.

 

ARTICLE XI

INSURANCE

 

11.1         TENANT’S INSURANCE
OBLIGATIONS

 

Tenant shall carry commercial general liability insurance in a company
or companies licensed to do business in the state in which the Premises are
located and reasonably approved by Landlord. 
Said insurance shall be in minimum amounts reasonably required by
Landlord from time to time by notice to Tenant and shall name Landlord as an
additional insured, as its interests may appear, and Tenant shall provide
Landlord with evidence, when requested, that such insurance is in full force
and effect. Tenant shall carry property damage insurance for all of its
equipment and for all leasehold improvements above the building standard, which
are made by Landlord or Tenant in and to the Premises, which policies shall
name Landlord as an additional insured. 
If required by Landlord, receipts evidencing payment for said insurance
shall be delivered to Landlord at least annually by Tenant and each policy
shall contain an endorsement that will prohibit its cancellation or amendment
prior to the expiration of thirty (30) days after notice of such proposed
cancellation or amendment to Landlord. 
Tenant shall carry insurance in the initial amounts listed in the Basic
Data and shall provide Landlord with certificates of such Tenant Insurance
Requirements on or prior to the Commencement Date.

 

11.2         CONSTRUCTION PERIOD
INSURANCE

 

At any time when demolition or construction work is being performed on
or about the Premises or Building by or on behalf of Tenant, the Tenant shall
keep in full 

 

 

23

 

force and effect the following insurance coverage in each instance with
policies reasonably acceptable to Landlord, including, without limitation, the
amount of any deductible thereunder:

 

(1)           builder’s risk
completed value (non-reporting form) in such form and affording such
protections as required by Landlord, naming Landlord and its mortgagees as
additional insureds; and

 

(2)           workers’
compensation or similar insurance in form and amounts required by law.

 

Tenant shall cause a certificate or certificates of such insurance to
be delivered to Landlord prior to the commencement of any work in or about the
Building or the Premises, in default of which Landlord shall have the right,
but not the obligation, to obtain any or all such insurance at the expense of
Tenant, in addition to any other right or remedy of Landlord.  The provisions of this Section 11.2 shall
survive the expiration or earlier termination of this Lease.

 

11.3         WAIVER OF SUBROGATION

 

Tenant and Landlord each hereby release the other to the extent of
their respective insurance coverage, from any and all liability for any loss or
damage caused by fire or any of the extended coverage casualties or any other
casualty insured against, even if such fire or other casualty shall be brought
about by the fault or negligence of Tenant, Landlord or their agents.  Tenant and Landlord agree that their
respective policies covering such loss or damage shall contain a clause to the
effect that this release shall not affect said policies or the right of Tenant
or Landlord, as the case may be, to recover thereunder and otherwise
acknowledging this mutual waiver of subrogation.

 

ARTICLE XII

CASUALTY

 

12.1         DEFINITION OF “SUBSTANTIAL
DAMAGE” AND “PARTIAL DAMAGE”

 

The term “substantial damage,” as used herein, shall refer to damage,
which is of such a character, that in Landlord’s reasonable, good faith
estimate the same cannot, in ordinary course, be expected to be repaired within
90 calendar days from the time that such repair work would commence.  Any damage, which is not “substantial damage,”
is “partial damage.”

 

12.2         PARTIAL DAMAGE TO THE
BUILDING

 

If during the Lease Term there shall be partial damage to the Building
by fire or other casualty and if such damage shall materially interfere with
Tenant’s use of the Premises as contemplated by this Lease, Landlord shall
promptly proceed to restore the Building to substantially the condition in
which it was immediately prior to the occurrence of such damage.

 

 

24

 

12.3         SUBSTANTIAL DAMAGE TO
THE BUILDING

 

If during the Lease Term there shall be substantial damage to the
Building by fire or other casualty and if such damage shall materially
interfere with Tenant’s use of the Premises as contemplated by this Lease,
Landlord shall promptly restore the Building to the extent reasonably necessary
to enable Tenant’s use of the Premises, unless Landlord, within seventy-five (75) days after the occurrence of such damage,
shall give notice to Tenant of Landlord’s election to terminate this Lease.  The Landlord shall have the right to make
such election in the event of substantial damage to the Building whether or not
such damage materially interferes with Tenant’s use of the Premises.  If Landlord shall give such notice, then this
Lease shall terminate as of the date of such notice with the same force and
effect as if such date were the date originally established as the expiration
date hereof.  If Landlord has not
restored the Premises to the extent required under this Section 12.3 within six (6) months after the date of such damage or destruction,
or if the Premises shall be substantially damaged during the last nine (9)
months of the Lease Term then, in either such case, Tenant may elect to
terminate this Lease by giving written notice of such election to Landlord
within thirty (30) days after the end of such six-month
period and before the substantial completion of such restoration.  If Tenant so elects to terminate this Lease,
then this Lease and the term hereof shall cease and come to an end on the date
that is thirty (30) days after the date that Landlord receives Tenant’s
termination notice, unless on or before such date Landlord has substantially
completed such restoration.

 

12.4         ABATEMENT OF RENT

 

If during the Lease Term the Building shall be damaged by fire or
casualty and if such damage shall materially interfere with Tenant’s use of the
Premises as contemplated by this Lease, a just proportion of the Rent payable
by Tenant hereunder shall abate proportionately for the period in which, by reason
of such damage, there is such interference with Tenant’s use of the Premises,
having regard to the extent to which Tenant may be required to discontinue
Tenant’s use of the Premises, but such abatement or reduction shall end if and
when Landlord shall have substantially restored the Premises or so much thereof
as shall have been originally constructed by Landlord (exclusive of any of
Tenant’s fixtures, furnishings, equipment and the like or work performed
therein by Tenant) to substantially the condition in which the Premises were
prior to such damage.

 

12.5         MISCELLANEOUS

 

In no event shall Landlord have any obligation to make any repairs or
perform any restoration work under this Article XII if prevented from doing so
by reason of any cause beyond its reasonable control, including, without
limitation, the requirements of any applicable laws, codes, ordinances, rules,
or regulations, the refusal of the holder of a mortgage or ground lease
affecting the premises to make available to Landlord the net insurance proceeds
attributable to such restoration, or the inadequacy of such proceeds to fund
the full cost of such repairs or restoration, but reasonably promptly after
Landlord ascertains the existence of any such cause, it shall either terminate
this 

 

 

25

 

Lease or waive such condition to its restoration obligations and
proceed to restore the Premises as otherwise provided herein.  Further, Landlord shall not be obligated in
any event to make any repairs or perform any restoration work to any
alterations, additions, or improvements to the Premises performed by or for the
benefit of Tenant (all of which Tenant shall repair and restore) or to any
fixtures in or portions of the Premises or the Building which were constructed
or installed by or for some party other than Landlord or which are not the
property of Landlord.

 

 

ARTICLE XIII

EMINENT DOMAIN

 

13.1         RIGHTS OF TERMINATION
FOR TAKING

 

If the Premises, or such portion thereof as to render the balance (if
reconstructed to the maximum extent practicable in the circumstances)
physically unsuitable for Tenant’s purposes, shall be taken (including a
temporary taking in excess of 180 days) by condemnation or right of eminent
domain or sold in lieu of condemnation, Landlord or Tenant may elect to
terminate this Lease by giving notice to the other of such election not later
than thirty (30) days after Tenant has been deprived of possession.

 

Further, if so much of the Building (which may include the Premises) or
the Lot shall be so taken, condemned or sold or shall receive any direct or
consequential damage by reason of anything done pursuant to public or
quasi-public authority such that continued operation of the same would, in
Landlord’s opinion, be uneconomical, Landlord may elect to terminate this Lease
by giving notice to Tenant of such election not later than thirty (30) days
after the effective date of such taking.

 

Should any part of the Premises be so taken or condemned or receive
such damage and should this Lease be not terminated in accordance with the
foregoing provisions, Landlord shall promptly after the determination of
Landlord’s award on account thereof, expend so much as may be necessary of the
net amount which may be awarded to Landlord in such condemnation proceedings in
restoring the Premises to an architectural unit that is reasonably suitable to
the uses of Tenant permitted hereunder. Should the net amount so awarded to
Landlord be insufficient to cover the cost of so restoring the Premises, in the
reasonable estimate of Landlord, Landlord may, but shall have no obligation to,
supply the amount of such insufficiency and restore the Premises to such an
architectural unit, with all reasonable diligence, or Landlord may terminate
this Lease by giving notice to Tenant within a reasonable time after Landlord
has determined the estimated cost of such restoration.

 

13.2         PAYMENT OF AWARD

 

The Landlord shall have and hereby reserves and excepts, and Tenant
hereby grants and assigns to Landlord, all rights to recover for damages to the
Building and the Lot and the leasehold interest hereby created, and to
compensation accrued or hereafter to accrue by reason of such taking or damage,
as aforesaid.  The Tenant 

 

 

26

 

covenants to deliver such further assignments and assurances thereof as
Landlord may from time to time request. 
Nothing contained herein shall be construed to prevent Tenant from
prosecuting in any condemnation proceedings a claim for the value of any of
Tenant’s trade fixtures installed in the Premises by Tenant at Tenant’s expense
and for relocation expenses, provided that such action shall not affect the
amount of compensation otherwise recoverable hereunder by Landlord from the
taking authority.

 

13.3         ABATEMENT OF RENT

 

In the event of any such taking of the Premises, the Rent or a fair and
just proportion thereof according to the nature and extent of the damage
sustained, shall be suspended or abated, as appropriate and equitable in the
circumstances.

 

13.4         MISCELLANEOUS

 

In no event shall Landlord have any obligation to make any repairs
under this Article XIII if prevented from doing so by reason of any cause
beyond its reasonable control, including, without limitation, requirements of
any applicable laws, codes, ordinances, rules, or regulations or requirements
of any mortgagee.  Further, Landlord
shall not be obligated to make any repairs to any portions of the Premises or
the Building which were constructed or installed by or for some party other than
Landlord or which are not the property of Landlord, and Tenant shall be
obligated to perform any repairs on and restorations to any alterations,
additions, or improvements to the Premises performed by or for the benefit of
Tenant.

 

ARTICLE XIV

 

14.1         TENANT’S DEFAULT

 

(a)  Events of Default.  The following shall be “Events of Default”
under this Lease:

 

                (i)  If Tenant shall fail to pay any monthly
installment of Rent when due, and such default shall continue for five (5) business days after written notice from Landlord;

 

(ii)  If Tenant shall fail to
timely make any other payment required under this Lease and such default shall
continue for five (5) business days
after written notice from Landlord;

 

(iii)  If Tenant shall violate or
fail to perform any of the other terms, conditions, covenants or agreements
herein made by Tenant, if such violation or failure continues for a period of
thirty (30) days after Landlord’s written notice thereof to Tenant; unless such default cannot reasonably be corrected
within such thirty (30) day period, in which event no Event of Default shall be
deemed to have occurred so long as Tenant has commenced cure and is diligently
prosecuting same;

 

 

27

 

(iv)  Tenant’s becoming insolvent,
as that term is defined in Title 11 of the United States Code, entitled
Bankruptcy, 11 U.S.C. Section 101 et. seq. (the “Bankruptcy Code”), or under
the insolvency laws of any State, District, Commonwealth or Territory of the
United States (the “Insolvency Laws”);

 

(v)  the appointment of a
receiver or custodian for all or a substantial portion of Tenant’s property or
assets, or the institution of a foreclosure action upon all or a substantial
portion of Tenant’s real or personal property;

 

(vi)  the filing of a voluntary
petition under the provisions of the Bankruptcy Code or Insolvency Laws;

 

(vii)  the filing of an
involuntary petition against Tenant as the subject debtor under the Bankruptcy
Code or Insolvency Laws, which is either not dismissed within forty-five
(45) days of filing, or results in the issuance of an order for relief against
the debtor, whichever is earlier;

 

(viii)  Tenant’s making or
consenting to an assignment for the benefit of creditors or a common law
composition of creditors; or

 

(ix)  Tenant’s interest in this
Lease being taken on execution in any action against the Tenant.

 

(b)           Landlord’s
Remedies.  Should an Event of Default
occur under this Lease, Landlord may pursue any or all of the following
remedies:

 

(i)            Termination of Lease.  Landlord may terminate this Lease by giving
written notice of such termination to Tenant, or by reentry, whereupon the
mailing of such notice of termination addressed to Tenant, or in the case of
reentry, upon such reentry, with or without notice or demand and with or
without process of law (forcibly if necessary), this Lease shall automatically
cease and terminate and Tenant shall be immediately obligated to quit the
Premises.  Termination by entry or notice
as provided herein shall be effective and complete upon entry or the mailing of
notice, respectively, and shall require no further action on the part of
Landlord including, without limitation, resort to legal process under
applicable law.  Any other notice to quit
or notice of Landlord’s intention to reenter the Premises is hereby expressly
waived.  If Landlord elects to terminate
this Lease, everything contained in this Lease on the part of Landlord to be
done and performed shall cease without prejudice, subject, however, to the
right of Landlord to recover from Tenant all Annual Rent and Additional Rent
and any other sums accrued up to the time of termination or recovery of
possession by Landlord, whichever is later.

 

(ii)  Suit for Possession.  Landlord may proceed to recover possession of
the Premises under and by virtue of the provisions of the laws of the state in
which the Premises are located or by such other proceedings, including reentry
and possession, as may be applicable.

 

 

28

 

(iii)  Reletting of Premises.  Should this Lease be terminated before the
expiration of the Term of this Lease by reason of Tenant’s default as
hereinabove provided, or if Tenant shall abandon or vacate the Premises before
the expiration or termination of the Term of this Lease without having paid the
full rental for the remainder of such Term, Landlord shall have the option, but
not the obligation, to relet the Premises for such rent and upon such terms as
are not unreasonable under the circumstances and, if the full Annual Rent and
Additional Rent reserved under this Lease (and any of the costs, expenses or
damages indicated below) shall not be realized by Landlord, Tenant shall be
liable for all damages sustained by Landlord, including, without limitation,
deficiency in rent, reasonable attorneys’ fees, brokerage fees and expenses of
placing the Premises in first-class rentable condition including without
limitation any alterations and improvements. 
Landlord, in putting the Premises in good order or preparing the same
for rerental may, at Landlord’s option, make such alterations, repairs or
replacements in the Premises as Landlord, in its sole judgment, considers
advisable and necessary for the purpose of reletting the Premises, and the
making of such alterations, repairs, or replacements shall not operate or be
construed to release Tenant from liability hereunder as aforesaid.  Landlord shall in no event be liable in any
way whatsoever for failure to relet the Premises, or in the event that the
Premises are relet, for failure to collect the rent under such reletting, and
in no event shall Tenant be entitled to receive the excess, if any, of such net
rent collected over the sums payable by Tenant to Landlord hereunder.

 

(iv)  Acceleration of Payment.  If Tenant shall fail to pay any monthly
installment of Rent pursuant to the terms of this Lease, within five (5) business days of the date when each such payment is due, for
three (3) consecutive months, or three (3) times in any period of twelve (12)
consecutive months, then Landlord may, by giving written notice to Tenant,
exercise any of the following options: 
(A) declare the entire rent reserved under this Lease to be due and
payable within ten (10) days of such notice; (B) declare the rent reserved
under this Lease for the next six (6) months (or at Landlord’s option for a
lesser period) to be due and payable within ten (10) days of such notice; or
(C) require an additional security deposit to be paid to Landlord within ten
(10) days of such notice in an amount not to exceed six (6) months rent.  Landlord may invoke any of the options
provided for herein at any time during which an Event of Default remains
uncured.

 

(v)  Monetary Damages.  Any damage or loss of rent sustained by
Landlord may be recovered by Landlord, at Landlord’s option, at the time of the
reletting, or in separate actions, from time to time, as said damage shall have
been made more easily ascertainable by successive relettings, or at Landlord’s
option in a single proceeding deferred until the expiration of the Term of this
Lease (in which event Tenant hereby agrees that the cause of action shall not
be deemed to have accrued until the date of expiration of said Term) or in a
single proceeding prior to either the time or reletting or the expiration of the
Term of this Lease.  In addition, should
it be necessary for Landlord to employ legal counsel to enforce any of the
provisions herein 

 

 

29

 

contained, Tenant agrees to pay all attorney’s fees and court costs
reasonably incurred.

 

(vi)  Anticipatory Breach;
Cumulative Remedies. Nothing contained herein shall prevent the enforcement
of any claim Landlord may have against Tenant for anticipatory breach of the
unexpired Term of this Lease.  In the
event of a breach or anticipatory breach by Tenant of any of the covenants or
provisions hereof, Landlord shall have the right of injunction and the right to
invoke any remedy allowed at law or in equity as if reentry, summary
proceedings and other remedies were not provided for herein.  Mention in this Lease of any particular
remedy shall not preclude Landlord from any other remedy, in law or in equity,
whether or not mentioned herein.  Landlord’s
election to pursue one or more remedies, whether as set forth herein or
otherwise, shall not bar Landlord from seeking any other or additional remedies
at any time and in no event shall Landlord ever be deemed to have elected one
or more remedies to the exclusion of any other remedy or remedies.  Any and all rights and remedies that Landlord
may have under this Lease, and at law and in equity, shall be cumulative and
shall not be deemed inconsistent with each other, and any two or more of all
such rights and remedies may be exercised at the same time insofar as permitted
by law.  Tenant hereby expressly waives
any and all rights of redemption granted by or under any present or future laws
in the event of Tenant being evicted or dispossessed for any cause, or in the
event of Landlord obtaining possession of the Premises, by reason of the
violation by Tenant of any of the covenants and conditions of this Lease, or
otherwise.

 

(c)  Waiver.  If, under the provisions hereof, Landlord
shall institute proceedings against Tenant and a compromise or settlement
thereof shall be made, the same shall not constitute a waiver of any other
covenant, condition or agreement herein contained, nor of any of Landlord’s
rights hereunder.  No waiver by Landlord
of any breach of any covenant, condition or agreement herein contained shall
operate as a waiver of such covenant, condition, or agreement itself, or of any
subsequent breach thereof.  No payment by
Tenant or receipt by Landlord of a lesser amount than the monthly installments
of rent herein stipulated shall be deemed to be other than on account of the
earliest stipulated rent, nor shall any endorsement or statement on any check
or letter accompanying a check for payment of Rent or any other sum be deemed
an accord and satisfaction, and Landlord may accept such check or payment
without prejudice to Landlord’s right to recover the balance of such Rent or
any other sum or so pursue any other remedy provided in this Lease.  No reentry by Landlord, and no acceptance by
Landlord of keys from Tenant, shall be considered an acceptance of a surrender
of the Lease or Premises.

 

(d)  Right of Landlord to Cure
Tenant’s Default.  If Tenant defaults
in the making of any payment or in the doing of any act herein required to be
made or done by Tenant, then Landlord may, but shall not be required to, make
such payment or do such act, and charge the amount of the expense thereof, if
made or done by Landlord, with interest thereon at the rate per annum which is
four percent (4%) greater than the “base lending rate” then in effect at Bank
of America, Boston, Massachusetts, or the 

 

 

30

 

highest rate permitted by law, whichever may be less; with it being the
express intent of the parties that nothing herein contained shall be construed
or implemented in such a manner as to allow Landlord to charge or receive
interest in excess of the maximum legal rate then allowed by law.  Such payment and interest shall constitute
Additional Rent hereunder due and payable with the next monthly installment of
Rent; but the making of such payment or the taking of such action by Landlord
shall not operate to cure such default or to stop Landlord from the pursuit of
any remedy to which Landlord would otherwise be entitled.

 

(e)  Late Payment.  If Tenant fails to pay any installment of
Rent on or before the fifth (5th) day
of the calendar month when such installment becomes due and payable, Tenant
shall pay to Landlord a late charge of five percent (5%) of the amount of such
installment; provided however, that Landlord agrees to
waive the late charge which would be payable by Tenant with respect to the
first late payment in any twelve month period.   In addition, such unpaid installment shall
bear interest at the rate per annum which is three
percent (3%) greater than the “base lending rate” then in effect at Bank
of America, Boston, Massachusetts, or the highest rate permitted by law,
whichever may be less; with it being the express intent of the parties that
nothing herein contained shall be construed or implemented in such manner as to
allow Landlord to charge or receive interest in excess of the maximum legal
rate then allowed by law.  Such late
charge and interest shall constitute Additional Rent hereunder due and payable
with the next monthly installment of Rent due, or if payments have been accelerated
pursuant to this Article 14, due and payable immediately.

 

                (f)  Lien on Personal Property.  Intentionally Omitted.

 

ARTICLE XV

THE LANDLORD’S ACCESS TO PREMISES

 

15.1         THE LANDLORD’S RIGHT
OF ACCESS

 

The Landlord and its agents, contractors, and employees shall have the
right to enter the Premises at all reasonable hours upon reasonable advance
notice or any time in case of emergency, for the purpose of inspecting or of
making repairs or alterations, to the Premises or the Building or additions to
the Building, and Landlord shall also have the right to make access available
at all reasonable hours to prospective or existing mortgagees or purchasers of
any part of the Building.

 

For a period commencing ten (10) months
prior to the expiration of the Lease Term, Landlord may have reasonable access
to the Premises at all reasonable hours for the purpose of exhibiting the same
to prospective tenants.

 

ARTICLE XVI

 

16.1         SUBORDINATION

 

Upon the written request of Landlord, Tenant shall enter into a recordable
agreement with the holder of any present or future mortgage of the Premises,
Building 

 

 

31

 

or Lot which shall provide that (i) this Lease shall be subordinated to
such mortgage, (ii) in the event of foreclosure of said mortgage or any other
action thereunder by the mortgagee, the mortgagee (and its successors in
interest) and Tenant shall be directly bound to each other to perform the
respective undischarged obligations of Landlord and Tenant hereunder (in the
case of Landlord accruing after such foreclosure or other action and in the
case of Tenant whether accruing before or after such foreclosure or other
action), (iii) this Lease shall continue in full force and effect, and (iv)
Tenant’s rights hereunder shall not be disturbed, except as in this Lease
provided.  The word “mortgage” as used
herein includes mortgages, deeds of trust and all similar instruments, all
modifications, extensions, renewals and replacements thereof, and any and all
assignments of the Landlord’s interest in this Lease given as collateral
security for any obligation of Landlord.

 

16.2                           MODIFICATIONS

 

In the event that any holder or prospective holder of any mortgage, as
hereinbefore defined, which includes the Premises as part of the mortgaged
Premises, shall request any reasonable
modification of any of the provisions of this Lease, other than a
provision which would otherwise increase Tenant’s obligations or reduce Tenant’s
rights and benefits hereunder, Tenant agrees that Tenant will enter
into a written agreement in recordable form with such holder or prospective
holder which shall effect such modification and provide that such modification
shall become effective and binding upon Tenant and shall have the same force
and effect as an amendment to this Lease in the event of foreclosure or other
similar action taken by such holder or prospective holder or by anyone claiming
by, through or under such holder or prospective holder.

 

ARTICLE XVII

MISCELLANEOUS PROVISIONS

 

17.1         CAPTIONS

 

The captions throughout this Lease are for convenience or reference
only and shall in no way be held or deemed to define, limit, explain, describe,
modify, or add to the interpretation, construction, or meaning of any provision
of this Lease.

 

17.2         BROKERAGE

 

Other than Spaulding & Slye Colliers (“Broker”), Tenant warrants
that there are no claims for broker’s commission or finder’s fees in connection
with its execution of this Lease or the tenancy hereby created and agrees to
indemnify and save Landlord harmless from any liability that may arise from
such claim, including reasonable attorneys’ fees.  Landlord
agrees to pay a broker’s commission due to Broker in accordance with a separate
agreement between Landlord and Broker.

 

 

32

 

17.3         HOLDOVER

 

If Tenant remains in the Premises after the termination of this Lease,
by its own terms or for any other reason, such holding over shall not be deemed
to create any tenancy, but Tenant shall be a tenant at sufferance only, at a
daily rate equal to double the Rent applicable immediately prior to such
termination plus the then applicable additional rent and other charges under
this Lease.  Tenant shall also pay to
Landlord all damages, direct or indirect, sustained by Landlord by reason of
any such holding over.  Otherwise, such
holding over shall be on the terms and conditions set forth in this Lease as
far as applicable.

 

17.4                           PARKING

 

                It is hereby
agreed that Tenant shall have the exclusive right to use during the term
hereof, three (3) reserved parking spaces located at The Schrafft Center, 529
Main Street, Charlestown, MA 02129.  
Tenant,  its employees, agents,
representatives and visitors, shall have the non-exclusive right to use, in
common with other tenants, employers, agents, representatives and visitors, any
of the non-reserved parking spaces at The Schrafft Center, on a first-come,
first-serve basis.

 

17.5         COUNTERPARTS

 

This Lease is executed in any number of counterparts, each copy of
which is identical, and any one of which shall be deemed to be complete in
itself and may be introduced in evidence or used for any purpose without the
production of the other copies.

 

17.6         CONSTRUCTION AND
GRAMMATICAL USAGE

 

This Lease shall be governed, construed and interpreted in accordance
with the laws of The Commonwealth of Massachusetts, and Tenant agrees to submit
to the personal jurisdiction of any court (federal or state) in said
Commonwealth for any dispute, claim or proceeding arising out of or relating to
this Lease.  In construing this Lease,
feminine or neuter pronouns shall be substituted for those masculine in form
and vice versa, and plural terms shall be substituted for singular and singular
for plural in any place in which the context so admits or requires.  If there be more than one party tenant, the
covenants of Tenant shall be the joint and several obligations of each such
party and, if Tenant is a partnership, the covenants of Tenant shall be the
joint and several obligations of each of the partners and the obligations of
the firm.

 

17.7         SECURITY DEPOSIT

 

Upon execution of this Lease by Tenant, Tenant shall deposit with
Landlord the Security Deposit as security for the faithful performance and
observance by Tenant of the terms, provisions and conditions of this
Lease.  It is agreed that in the event
Tenant defaults in respect of any of the terms, provisions and conditions of
this Lease, Landlord may use, apply or retain the whole or any part of the
Security Deposit to the extent required for payment of any Rent or any other
sum as to which Tenant is in 

 

 

33

 

default or for any sum which Landlord may expend or may be required to
expend by reason of Tenant’s default in respect of any of the terms, covenants
and conditions of this Lease, including but not limited to any damage or
deficiency accrued before or after summary proceedings or other reentry by
Landlord, including the costs of such proceeding or reentry and further
including, without limitation, reasonable attorney’s fees.  It is agreed that Landlord shall always have
the right to apply the Security Deposit, or any part thereof, as aforesaid,
without notice and without prejudice to any other remedy or remedies which
Landlord may have, or Landlord may pursue any other such remedy or remedies in
lieu of applying the Security Deposit or any part thereof.  No interest shall be payable on the Security
Deposit.  If Landlord shall use, apply or
retain the Security Deposit in whole or in part and the Lease continues or
Tenant’s occupancy continues in the Premises, Tenant shall within ten (10) days
after written notice from the Landlord make such further or other deposit of
monies as may be necessary to bring the balance of the deposit to a sum equal
to one (1) months rent of the then current Rent.  In the event that Tenant shall fully and
faithfully comply with all of the terms, provisions, covenants and conditions
of this Lease, the Security Deposit shall be returned to Tenant within sixty (60) days after the termination of the
Lease and after delivery of entire possession of the Premises to Landlord in
accordance with the terms of this Lease. 
In the event of a sale or other transfer of the Building, or leasing of
the entire Building including the Premises subject to Tenant’s tenancy
hereunder, Landlord shall transfer the Security Deposit then remaining to the
vendee or lessee and Landlord shall thereupon be released from all liability
for the return of such Security Deposit to Tenant; and Tenant agrees to look
solely to the new Landlord for the return of said Security Deposit then
remaining.  The holder of any mortgage
upon the Building or Lot shall never be responsible to Tenant for the Security
Deposit or its application or return unless the Security Deposit shall actually
have been received in hand by such holder. 
Tenant further covenants that it will not assign or encumber or attempt
to assign or encumber the Security Deposit and that neither Landlord nor its
successors or assigns shall be bound by any such assignment, encumbrance,
attempted assignment or attempted encumbrance.

 

                Provided that
no Event of Default has occurred by Tenant over the preceding twelve (12) month
period, Landlord hereby agrees to apply a portion of the Security Deposit to
Tenant’s account in the amount of Twenty-Five Thousand and 00/100 ($25,000.00)
Dollars on the twenty-fourth (24th) month of the Lease Term, thereby
leaving a balance of Seventy-Five Thousand and 00/100 ($75,000.00) Dollars of
the Security Deposit on Tenant’s account during the remainder of the Lease
Term.

 

        In the event the Security
Deposit is not applied as described hereinabove, then Landlord shall retain
said Security Deposit for the entire term of this Lease and any extension
thereof, and said Security Deposit shall be refunded to Tenant at the end of
this Lease, subject to Tenant’s satisfactory compliance with the conditions
herein contained and set forth.

 

17.8         LANDLORD’S
ENFORCEMENT EXPENSES

 

Unless prohibited by applicable law, the Tenant agrees to pay to the
Landlord the amount of all fees and expenses (including, without limitation,
attorneys’ fees and 

 

 

34

 

costs) incurred by the Landlord arising out of or resulting from any
act or omission by the Tenant with respect to this Lease or the Premises,
including without limitation, any breach by the Tenant of its obligations
hereunder, irrespective of whether Landlord resorts to litigation as a result
thereof.

 

17.9         NO SURRENDER

 

The delivery of keys to any employee of Landlord or to Landlord’s
agents or employees shall not operate as a termination of this Lease or a
surrender of the Premises.

 

17.10       COVENANT OF QUIET
ENJOYMENT

 

Subject to the terms and provisions of this Lease and on payment of the
Rent, additional rent, and other sums due hereunder and compliance with all of
the terms and provisions of this Lease, Tenant shall lawfully, peaceably, and
quietly have, hold, occupy, and enjoy the Premises during the term hereof,
without hindrance or ejection by Landlord or by any persons claiming under
Landlord; the foregoing covenant of quiet enjoyment is in lieu of any other
covenant, express or implied.

 

17.11       NO PERSONAL LIABILITY
OF THE LANDLORD

 

It is specifically agreed that the obligations of Landlord under this
Lease do not constitute personal obligations of Landlord and that Tenant shall
not seek recourse against the personal assets of Landlord for satisfaction of
any liability with respect to this Lease.

 

17.12       NOTICES

 

Any notice or consent required to be given by or on behalf of either
party to the other shall be in writing and shall be given by mailing such
notice or consent as set forth in Article 1.2 of this Lease, addressed, if to
Landlord, at the address set forth in Article 1.2 of this Lease, and, if to
Tenant, at the address as set forth in Article 1.2 of this Lease, or at such
other address as may be specified from time to time in writing sent to the
other party by like notice.

 

Whenever, by the terms of this Lease, notice shall or may be given
either to Landlord or to Tenant, such notice shall be in writing and shall be
delivered by hand or sent by registered or certified mail, postage prepaid or
by so-called “express” mail (such as Federal Express or U.S. Postal Service
Express Mail).

 

17.13       FINANCIAL INFORMATION

 

It is hereby understood and agreed that Tenant will supply to the
Landlord, on an annual basis, a copy of Tenant’s audited financial statement
within ninety (90) days following Tenant’s fiscal year end.  Any information obtained by Landlord pursuant
to 

 

 

35

 

the provisions of this Paragraph shall be treated as confidential,
except that Landlord may disclose such information to its lenders.

 

17.14       RULES AND REGULATIONS

 

The Tenant will observe and comply with the Rules and Regulations as
attached hereto and made a part hereof, including revisions and additions as
the Landlord may from time to time institute.

 

17.15       RIGHT TO MOVE

 

                The Landlord
reserves the right to move the Tenant and if Landlord so requests, Tenant shall
vacate the Premises and relinquish its right with respect to the same, provided
that Landlord provides to Tenant, space within the complex commonly known as
The Schrafft Center, 529 Main Street, Charlestown, MA 02129.

 

                Such space shall
be reasonably comparable in size, layout, finish and utility to the existing
Premises, and further provided that Landlord shall, at its sole cost and
expense, move the Tenant and its removable property from the Premises to such
new space in such a manner as will minimize, to the greatest extent
practicable, undue interference with the business or operations of Tenant.  Landlord
agrees to pay for all verified reasonable direct and indirect costs as a result
of any such relocation, to include but not be limited to costs of relocating
furniture, files and equipment, telephone installation, and the reasonable
costs of new stationery.  Any
such space shall from and after such relocation, be treated as the Premises
demised under this Lease, and shall be occupied by Tenant under the same terms,
provisions and conditions as are set forth in this Lease.

 

17.16       ESTOPPEL CERTIFICATES.

 

Landlord and Tenant both agree on the Term Commencement Date and from
time to time thereafter, upon not less than fifteen (15) days’ prior written
request by either party to execute, acknowledge and deliver to the other party
a statement in writing, certifying that this Lease is unmodified and in full
force and effect, that such party has no defenses, offsets or counterclaims
against its obligations to pay rent and other charges required under this Lease
and to perform its other covenants under this Lease and that there are no
uncured defaults of Landlord or Tenant under this Lease (or, if there have been
any modifications, that this Lease is in full force and effect, as modified,
and stating the modifications, and, if there are any defenses, offsets,
counterclaims or defaults, setting them forth in reasonable detail), and the
dates to which the Rent and other charges have been paid.  Any such statement delivered pursuant to this
Section 17.16 may be relied upon by any prospective purchaser or mortgagee of
the property which includes the Premises, or any prospective assignee of any
such mortgagee.

 

17.17       SIGNAGE

 

(a) Directory Signage.  The location
and identity of Tenant will be set forth on the 

 

 

36

 

Building directory located in the main lobby, initially at Landlord’s
expense.

Any subsequent changes shall be at Tenant’s expense and shall conform
to Landlord’s standard sign criteria for the Building.

 

(b) Tenant Suite Identification Signage.  Landlord shall provide a suite sign at the
entrance to Tenant’s Premises which shall conform to Landlord’s standard sign
criteria for the Building, or as otherwise agreed by Landlord and Tenant.  Any subsequent changes to the aforementioned
signage after the initial installation by Landlord shall be at Tenant’s sole
cost and expense and shall conform to Landlord’s standard sign criteria for the
Building.

 

17.18       CONTINGENCY

 

Notwithstanding
anything contained herein to the contrary, it is hereby understood and agreed
between the parties that this Lease is contingent upon the Landlord being in
receipt of a fully-executed Termination of Lease between a third party and
Landlord for the Premises by April 21,
2006, or an extended date as mutually agreed upon by Landlord and Tenant in
writing.  In the event Landlord is not in
receipt of a fully-executed Termination of Lease between a third party and
Landlord for the Premises by this April 21,
2006, date, or said extended date, this Lease shall become null and void and of
no further force or effect.

 

17.19                     EXPANSION
OPTION

 

                Tenant
shall have the right to lease additional space (“Expansion Space”) from the
Landlord within the Building after the forty-second (42nd) month of
the Lease Term and prior to the forty-eighth (48th) month of the
Lease Term.  In the event Landlord is
unable to provide Tenant with Expansion Space within the Building during said months,
Tenant shall have a right to terminate the Lease, provided all of the following
terms and conditions are satisfied, time being of the essence: (i)  Tenant has been reasonable and fairly
justifies to Landlord the amount of Expansion Space required;  (ii) Tenant is not in default pursuant to the
terms of this Lease and there exists no conditions which with the passage of
time or the giving of notice or both would constitute a default; (iii) Tenant
exercises the option to terminate by written notice delivered to Landlord six
(6) months prior to the effective date of termination (hereinafter referred to
as the “Termination Notice”); and (iv) Tenant pays to Landlord all unamortized
construction costs and brokers fees (the “Termination Payment”).

 

                In order for the
Termination Notice to be effective, it must be accompanied with an unendorsed
certified check or bank cashier’s check payable to the direct order of Landlord
in the amount of the Termination Payment.

 

Notwithstanding the foregoing, in the event the
Tenant exercises the aforementioned termination right, Rent, Additional Rent,
and all other charges will be 

 

 

37

 

due and payable until the later of (i) the date Tenant fully vacates
the Premises or (ii) six (6) months following Landlord’s receipt of the
Termination Notice.

 

17.20       WHEN LEASE BECOMES
BINDING

 

Employees or agents of Landlord have no authority to make or agree to
make a lease or any other agreement or undertaking in connection herewith.  The submission of this Lease for examination
and negotiation does not constitute an offer to lease, a reservation of, or
option for the Premises and shall vest no right in any party.  Tenant or anyone claiming under or through
Tenant shall have the rights to the Premises as set forth herein and this Lease
becomes effective as a Lease only upon execution, acknowledgment and delivery
thereof by Landlord and Tenant, regardless of any written or verbal
representation of any agent, manager or employee of Landlord to the contrary.

 

17.21       MISCELLANEOUS

 

Each party hereto has reviewed and revised (or requested revisions of)
this Lease, and therefore any usual rules of construction requiring that
ambiguities are to be resolved against a particular party shall not be
applicable in the construction and interpretation of this Lease or any Exhibits
hereto.

 

17.22       ENTIRE AGREEMENT

 

This Lease and the exhibits and any rider attached hereto, set forth
all the covenants, promises, agreements conditions, representations and
understandings between Landlord and Tenant concerning the Premises and there
are no covenants, promises, agreements, conditions, representations or
understandings, either oral or written between them other than those herein set
forth and this Lease expressly supersedes any proposals or other written
documents relating hereto.  Except as
herein otherwise provided, no subsequent alteration, amendment, change or
addition to this Lease shall be binding upon Landlord and Tenant unless reduced
to writing and signed by them.  Tenant
agrees that Landlord and its agents have made no representations or promises
with respect to the Premises, or the Building of which the Premises are a part,
or the Lot, except as herein expressly set forth.

 

IN WITNESS WHEREOF, the parties hereto have executed this instrument
under seal as of the date set forth in Section 1.2, above.

 

 

	
   

  	
   

  	
  LANDLORD:

  	
   

  	
  John
  J. Flatley and Gregory D. Stoyle, Trustees of The Schrafft’s Nominee Trust

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WITNESS

  	
   

  	
   

  	
   

  	
  By: 

  	
  Gregory D. Stoyle

  
	
   

  	
   

  	
   

  	
   

  	
  Its: 

  	
  Trustee

  

 

 

38

 

	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WITNESS

  	
   

  	
   

  	
   

  	
  By: 

  	
  John J. Flatley

  
	
   

  	
   

  	
   

  	
   

  	
  Its: 

  	
  Trustee

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TENANT:

  	
   

  	
  Lightspace Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WITNESS

  	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Its:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Duly Authorized

  

 

 

 

 

COMMONWEALTH
OF MASSACHUSETTS )

                              )  SS.

COUNTY
OF NORFOLK             )

 

On this
              
day of                             ,
2006, before me, the undersigned notary public, personally appeared John J.
Flatley, as Trustee for The Schrafft’s Nominee Trust, proved to me through
satisfactory evidence of identification, which was [  ] a valid
Massachusetts driver’s license, [  ] my personal knowledge of the signatory,
or [  ]
                                       
[check one], to be the person whose name is signed on the preceding or attached
document, and acknowledged to me that he signed it voluntarily for its stated
purpose.

 

 

 

	
   

  	
   

  	
   

  
	
  My commission expires:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
					

 

 

COMMONWEALTH
OF MASSACHUSETTS )

                              )  SS.

COUNTY
OF NORFOLK             )

 

On this
            day of                        ,
2006, before me, the undersigned notary public, personally appeared Gregory D.
Stoyle, as Trustee for The Schrafft’s Nominee Trust, proved to me through
satisfactory evidence of identification, which was [  ] a valid
Massachusetts driver’s license, [  ] my personal knowledge of the
signatory, or [  ]                                  
[check one], to be the person whose name is signed on the preceding or attached
document, and acknowledged to me that he signed it voluntarily for its stated
purpose.

 

 

39

 

 

	
   

  	
   

  	
   

  
	
  My commission expires:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
					

 

 

STATE
OF
                   )

                              )  SS.

COUNTY
OF                     )

 

On this             
day of                        ,
2006, before me, the undersigned notary public, personally appeared
                               ,
as                                       
for                                        ,
proved to me through satisfactory evidence of identification, which was
[  ] a valid                                 
driver’s license, [  ] my personal knowledge of the signatory, or
[  ]                               
[check one], to be the person whose name is signed on the preceding or attached
document, and acknowledged to me that (he)(she) signed it voluntarily for its
stated purpose.

 

 

	
   

  	
   

  	
   

  
	
  My commission expires:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
					

RULES AND REGULATIONS

 

l.  The sidewalks, entrances,
passages, courts, elevators, vestibules, stairways, corridors and halls shall
not be obstructed or encumbered by any Tenant, nor shall they be used for any
purpose other than ingress and egress to and from the Premises.  Landlord shall keep the sidewalks and curbs
directly in front of said Premises, clean and free from ice and snow.

 

2.  No awnings or other
projections shall be attached to the outside walls of the building without the
prior written consent of the Landlord. 
No curtains, blinds, shades or screens shall be attached to, hung in, or
used in connection with, any window or door of the Premises, without the prior
written consent of the Landlord.  Any
such awnings, projections, curtains, blinds, shades, screens or other fixtures
used by Tenant (if given the prior written consent of the Landlord for such
use), shall be of a quality, type, design and color, attached in a manner
approved by the Landlord.

 

3.  A building directory will be
maintained in the main lobby of the building at the expense of the Landlord and
the number of such listings shall be at the sole discretion of the
Landlord.  No sign, advertisement, notice
or other lettering shall be exhibited, inscribed, painted or affixed by any
Tenant on any part of the outside or inside of the Premises or building,
without the prior written consent of the Landlord.  In the event of violation of the foregoing by
any Tenant, Landlord may remove same without any liability and may charge the
expense incurred by such removal to any Tenants violating this rule.  Interior signs on doors and directory tablet
shall be inscribed, painted or affixed for each Tenant, at Tenant’s expense and
shall be of a size, color and style acceptable to the Landlord.

 

4.  The sashes, sash doors,
skylights, windows and doors that reflect or admit light and air into the
halls, passageways or other public places in the building shall not be covered
or obstructed by any Tenant, nor shall any bottles, parcels or other articles
be placed on the 

 

 

40

 

windowsills.

 

5.  No show cases or other
articles shall be put in front of, or affixed to any part of the exterior of
the building, nor placed in the halls, corridors, vestibules or fire escapes,
without the prior written consent of the Landlord.

 

6.  The water and wash closets
and other plumbing fixtures shall not be used for any purposes other than those
for which they were constructed, and no sweepings, rubbish, rags or other
substances shall be thrown therein.  All
damages resulting from any misuses of the fixtures shall be borne by the Tenant
who, or whose servants, employees, agents, visitors, or licensees, shall have
caused same.

 

7.  No Tenant shall mark, paint,
drill into, or in any way deface any part of the Premises or the building of
which they form a part.  No boring,
cutting or stringing of wires shall be permitted, except with the prior written
consent of Landlord, and as the Landlord may direct.  No Tenant shall lay linoleum, or other
similar floor covering, so that the same shall come in contact with the floor
of the Premises, and, if linoleum or other similar floor covering is desired to
be used, an interlining of builder’s deadening felt shall be first affixed to
the floor by a paste or other material, soluble in water, the use of cement or
other similar adhesive material being expressly prohibited.

 

8.  No bicycles, vehicles or
animals of any kind shall be brought in or kept about the Premises, and no
cooking shall be done or permitted by Tenant on said Premises.  No Tenant shall cause or permit any unusual
or objectionable odors to be produced upon or permeate from the Premises.

 

9.  No space in the building,
except as provided in individual Leases, shall be used for manufacturing, for
the storage of merchandise, or for the sale of merchandise, goods or property
of any kind at auction.

 

10.  No Tenant shall make, or
permit to be made, any unsettling or disturbing noises or disturb or interfere
with occupants of this or neighboring buildings or premises’ or those having
business with them, whether by the use of any musical instrument, radio,
talking machine, unmusical noise, whistling, singing, or in any other way.  No Tenant shall throw anything out of doors,
windows, skylights or down the passageways.

 

11.  No Tenant, nor any of Tenant’s
servants, employees, agents, visitors or licensees, shall at any time bring or
keep upon the Premises any flammable, combustible or explosive fluid, chemical
and substance.

 

12.  No additional locks or bolts
of any kind shall be placed upon any of the doors or windows by any Tenant, nor
shall any changes be made in existing locks or the mechanism thereof.  Each Tenant must, upon the termination of his
tenancy, return to the Landlord, all keys for stores, offices and toilet rooms,
either furnished to, or otherwise procured by, such Tenant, and in the event of
the loss of any keys so furnished, such Tenant shall pay the Landlord the cost
thereof.

 

13.  All removals, or the
carrying in or out of any safes, freight, furniture or bulky matter 

 

 

41

 

of any description must take place during the hours which the Landlord
or its agents may determine from time to time. 
The Landlord reserves the right to inspect all freight to be brought
into the building and to exclude from the building, all freight which violates
any of these Rules and Regulations or the Lease of which these Rules and
Regulations are a part.

 

14.  No Tenant shall occupy or
permit any portion of the Premises leased to him to be occupied for the
possession, storage, manufacture or sale of liquor, narcotics, or as a barber
or manicure shop.

 

15.  Landlord shall have the
right to prohibit any advertising by any Tenant which, in Landlord’s opinion,
tends to impair the reputation of the building or its desirability as a
building for offices, and upon written notice from Landlord, Tenant shall
refrain from or discontinue such advertising. 
Tenant shall not use the name of the building or its owner in any
advertising without the express written consent of the Landlord.

 

16.  No Tenant shall install or
permit the installation or use of any machines dispensing goods for sale,
including without limitation, foods, beverages, cigarettes or cigars.  No food or beverage shall be carried in the
public halls and elevators of the buildings, except in closed containers.

 

17.  The Premises shall not be
used for lodging or sleeping or for any immoral or illegal purpose.

 

18.  Canvassing, soliciting and
peddling in the building is prohibited and each Tenant shall cooperate to
prevent the same by notifying the Landlord.  Landlord reserves the right to inspect any
parcel or package being removed from the building by Tenant, its employees,
representatives and business invitees.

 

19.  There shall not be used in
any space or in the public halls of any building, either by a Tenant or by
jobbers or others in the delivery of or receipt of merchandise, any hand
trucks, except those equipped with rubber tires and side guards.

 

42

 

EXHIBIT A

 

Floor Plans

 

 

 

 

 

 

 

 

 

 

 

 

 

43

 

EXHIBIT B

 

Landlord shall construct Tenant’s Premises in accordance with a
mutually agreed upon floor plan.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

44

 

EXHIBIT C

 

 

TERM COMMENCEMENT DATE AGREEMENT

 

 

To be attached to and made a part of that certain Lease Agreement dated
                                    ,
2006, by and between John J. Flatley and Gregory D. Stoyle, Trustees of The
Schrafft’s Nominee Trust, as Landlord, and Lightspace Corporation, as Tenant.

 

Relative to the Premises located on the third (3rd) floor of
The Schrafft Center, 529 Main Street, Charlestown, MA 02129, and more
specifically referred to in the above-mentioned Lease, our records
indicate the following pertinent information with regard to same:

 

 

             Occupancy Date:

 

     Term Commencement Date:

 

          Actual Term Dates:

 

     Rent Commencement Date:

 

 

If you concur with the above, please acknowledge by signature below,
retaining one (l) copy of this Agreement for your files and returning the other
to my attention, at your earliest possible convenience.

 

 

45

 

 

 

TERM COMMENCEMENT DATE AGREEMENT

PAGE TWO

 

 

Should this Term Commencement Date Agreement not be executed and returned
to Landlord within thirty (30) days of its receipt by Tenant, said dates as
specified herein shall hereby be deemed assented to by the Tenant.

 

Sincerely yours,

 

 

 

 

Lease Administration

COMMERCIAL/INDUSTRIAL DIVISIONS

 

 

 

 

 

cc:

 

CERTIFIED MAIL - RETURN RECEIPT REQUESTED

 

 

 

        The foregoing is hereby
acknowledged and agreed.

 

 

 

	
  TENANT:

  	
   

  	
  Lightspace Corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  WITNESS

  	
   

  	
  By:

  
	
   

  	
   

  	
  Its:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
               Duly
  Authorized

  
	
   

  	
   

  	
   

  

 

 

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