Document:

Exhibit 10.1

 

OAK STATE PRODUCTS INC.

CO-PACKING AGREEMENT

 

This Agreement is made as of February 26, 2008, by and between Mrs. Fields
Branded Retail Group, a division of Mrs. Fields Famous Brands, a Delaware
limited liability company, with its principal place of business at 2855 East
Cottonwood Parkway, Suite 400, Salt Lake City, Utah 84121, (hereinafter
referred to as “Buyer”), and Oak State Products Inc., an Illinois corporation
with its principal place of business at 775 State Route 251 South, Wenona, IL
61377 (hereinafter referred to as “OSP” or the “Seller”).

 

WHEREAS, Buyer markets, sells and arranges for distribution of shelf
stable baked products; and

 

WHEREAS, OSP manufactures various types of shelf stable baked products
for third parties to be marketed, sold and distributed by such third parties;
and

 

WHEREAS, Buyer wishes to engage OSP to co-manufacture certain of its
products upon the terms and conditions described in this Agreement and OSP
wishes to accept such engagement; and

 

WHEREAS, in consideration of the mutual promises contained in this
Agreement, the parties agree as set forth below.

 

1.               Term.  The term of this Agreement shall commence on February 26,
2008 and shall expire on the first anniversary of such date, unless sooner
terminated as provided herein (the “Initial Term”).  The Agreement shall renew automatically for
additional one-year terms (“Renewal Term”) unless canceled by either party with
at least one hundred twenty (120) days written notice prior to the end of the
applicable Initial or Renewal Term.

 

2.               Production of
the Product.

 

(a)                                  OSP
shall manufacture the products specified in Exhibit “A” (the “Products”).  Buyer may, from time to time, introduce new
products which may be added to Exhibit A by providing OSP with thirty (30)
days written notice; provided that OSP and Buyer agree as to all needed
specifications for the new Product(s), including pricing.   Buyer may also introduce product(s) that
will be needed for seasonal purposes only, and OSP agrees to manufacture such
seasonal product(s) in amounts designated by Company from time to time if
doing so can be reasonably accomplished; provided that OSP and Buyer agree as
to all needed specifications for the seasonal product(s), including pricing.
Buyer agrees to purchase any remaining components after requested production of
a seasonal item with 

 

 

particular attention to those items with
minimum order requirements over and above those needed for the production of
the seasonal item, provided OSP consults with Buyer prior to placing orders
with a minimum that exceeds required production.   OSP agrees to inform Buyer promptly in
writing if for any reason it is not able to manufacture new product(s) or
seasonal product(s) in the amounts needed. 
For purposes of this Agreement, the new products and seasonal products
contemplated by this Section shall be considered “Products”. If a new
Product is to be added, Exhibit A will be revised to add the new
Product.  Other Exhibits will be added or
revised as needed to accurately reflect the addition of new Products to this
Agreement.  Products may also be removed
from Exhibit “A” upon Buyer’s decision to no longer manufacture the
Products or as may otherwise be permitted under the terms of this Agreement.

 

(b)                                 Except
as otherwise agreed, OSP shall supply, at its own expense, all facilities,
equipment, supplies, personnel and technical information (along with technical
information of Buyer if supplied by Buyer to OSP) to manufacture, package and
deliver the Products in accordance with the specifications for each Product, a
summary of which are attached hereto as Exhibit “B” (hereinafter, the “Buyer
Specifications”).  A complete set of
Buyer Specifications applicable to the production of the Products shall be
provided to OSP by Buyer.  OSP acknowledges
that the Buyer Specifications for any of the Products may be revised upon prior
written notice by Buyer, in its sole discretion, at any time during the term of
this Agreement.  Within two (2) weeks
of Buyer providing OSP revised specifications, OSP shall determine if it will
be able or unable to meet the new specifications as requested by Buyer.  If OSP determines it will not be able to meet
the specifications and so notifies Buyer, OSP shall have the right to terminate
the Agreement or Buyer shall have the right to revert to the old specification
and the contract will remain in force. 
If the contract is terminated pursuant to this provision, then the
obligation of the Buyer to repurchase components as provided herein shall
apply.  In the event that revisions to
the Buyer Specifications result in a change in actual cost to OSP, the Tolling
Fees paid to OSP pursuant to Section 6 of this Agreement will be adjusted
to reflect the new cost.  For
clarification, any such revision shall only reflect increases and decreases to
OSP’s actual cost of production, and shall not affect any fees or profits
payable to OSP by Buyer in accordance with this Agreement.  If such revisions render unmarketable any of
the Products or inventories of ingredients or packaging materials, Buyer shall
purchase all such items from OSP at OSP’s cost or other agreed upon price.

 

(c)                                  Finished Goods
Inventory

Product shall be loaded from the production
line onto trailers from Buyer’s approved carrier list.  Except for short-term storage,  not to exceed seventy five (75) pallets, of
Products necessary to arrange for 

 

 

pickup and shipping of products by Buyer’s
distributors or agents as set forth in Section 5, OSP shall not be
required to provide storage of finished goods Product inventory in OSP’s
facility.

 

3.                                       Supplies.

 

(a)                                  Buyer Components.  Upon receipt of the Buyer Specifications, OSP
shall purchase,  upon such schedule as
may be mutually agreed upon in writing, a supply of buyer components that are
unique to Buyer’s Products as identified and contracted by Buyer as set forth
on Exhibit “C” (the “Buyer Components”), as required by the Buyer
Specifications, sufficient to carry out all Production Orders.  Buyer may revise the Buyer Components by
revising Exhibit C upon 30 days prior written notice to OSP.  OSP will use such Buyer Components solely to
produce Products hereunder.  OSP will not
be responsible for any failure to produce Products hereunder to the extent (but
only to the extent) such failure is due solely to the unavailability of Buyer
Components.  If OSP is unable to obtain
Buyer Components, and a line shutdown and changeover occur as a result, OSP
will have the option to delay production until the next previously scheduled
and agreed production date.  OSP will
allocate sufficient space to store a 2-week supply of Buyer Components.

 

(b)                                 Non-Buyer
Components.  OSP will purchase all
raw materials, labeling and packaging (other than the Buyer Components)
required to produce Products hereunder in accordance with the Buyer Specifications
(“Non-Buyer Components”) from such vendors as may be approved by Buyer in
writing.  OSP will use its reasonable
best efforts to timely obtain a sufficient supply of all Non-Buyer Components
necessary to produce the Products as required herein at the lowest cost for the
quality required to meet the Buyer Specifications.

 

(c)                                  Inventory
System.  OSP will regularly monitor
and control its inventory of Buyer Components, Non-Buyer Components and
finished Products in accordance with a reasonably detailed written inventory
and control system (the “Inventory System”). 
OSP will use its reasonable best efforts to minimize the obsolescence of
all such inventory.  Promptly upon
receipt of delivery of any Buyer Components or Non-Buyer Components, OSP will
inspect such delivery in accordance with the Inventory System to confirm
receipt of proper quantities and quality. 
No more often than quarterly during the term hereof, OSP and Buyer will
review OSP’s on hand supply of Buyer Components (which shall be a minimum of
ninety (90) day supply – the Minimum Required Supply) and identify any obsolete
Buyer Components..  Buyer will compensate
OSP for an amount not to exceed its Minimum Required Supply of actual obsolete
Buyer Components.

 

 

(d)                                 Procurement.

Buyer shall contract with
suppliers for Buyer Components and determine the quantities necessary to meet
production requirements.  OSP will issue
purchase orders to these suppliers and purchase Buyer Components necessary to
meet production requirements. OSP shall contract for ingredient and materials
common to its normal course of business, including Non-Buyer Components, and
purchase those items necessary for production requirements.

 

(e)                                  Inventory
Audits.  At Buyer’ request from time
to time but no more   frequent than once
per month, OSP will promptly conduct a full physical inventory or a spot
inventory of Buyer Components, Non-Buyer Components and/or finished Products
then in OSP’s possession or under its control, in accordance with policies and
procedures to be mutually agreed upon in writing.  OSP will promptly furnish the results of any
such inventory to Buyer in such form and manner as Buyer may reasonably
request.

 

4.                                       Production
Scheduling.  The first week of each
month, Buyer will provide OSP a non-binding twenty six (26) week rolling
forecasted production plan for the Products. Each week Buyer shall also provide
OSP a revised rolling schedule of their production requirements for the next
six (6) weeks.  The first three (3) weeks
of this six (6) week production plan will be considered a binding
production commitment, provided that the Products are packaged and delivered in
accordance with the terms and conditions of this Agreement. The parties
acknowledge that customer and consumer demand for the Products may fluctuate
and OSP will use commercially reasonable efforts to accommodate any production
changes within the six (6) week period that are necessary to allow Buyer
to meet such customer and consumer demands. Provided, however, OSP shall notify
Buyer within six (6) business days if OSP will not be able to manufacture
the Product requested in the six (6) week production plan.

 

To also assist OSP in meeting Buyer’s volume requirements, on each
anniversary of the commencement date of this Agreement, Buyer shall provide OSP
with a non-binding best estimate of Buyer’s production requirements for the
next twelve month period of production by OSP. The estimate for the Initial
Term for those Products currently included in this Agreement is attached hereto
as Exhibit “D”. OSP will notify Buyer immediately if at any time it
determines it will not have sufficient capacity to meet the production outlined
in the twelve month forecasts, the weekly rolling forecasts or the scheduling
agreement.

 

If at any time during the Term of this Agreement OSP experiences any
unscheduled interruption in the production of the Products hereunder, Buyer
shall have the right to a prorate share of OSP’s capacity (based on the volume
of production utilized by Buyer compared to OSP’s total production) when
production resumes until the production schedule is back on track according to
the 

 

 

scheduling agreement.  Unless
such interruption is due to an uncontrollable shortage of Buyer Components or
Force Majeure as set forth in Section 11 below, OSP shall indemnify Buyer
and hold Buyer harmless from any damages and expenses arising out of the
unscheduled interruption.

 

5.                                       Shipping.  OSP shall arrange for pick up and delivery of
the product by common carrier pursuant to Buyer’s written instructions. OSP shall
be responsible for the safe and proper loading of the Product onto shipping
vehicles.  OSP will maintain adequate and
accurate shipping records in order that Product lots on all shipments may be
traced.  Buyer shall be responsible for
paying all shipping costs associated with the transportation of the Product and
will indemnify and hold OSP harmless for any loss, cost or expense associated
therewith.

 

6.                                       Price and
Payment; Review and Audit.  The
prices of the Product shall be as set forth on Exhibit A.  Exhibit A shall include a breakdown of
OSP’s costs for Buyer Components, Non-Buyer Components and Tolling Fees
(defined below) for each Product.  Within
forty-five (45) days after the end of each calendar quarter during the term of
this Agreement, the representatives of the parties shall meet to review the
performance of the parties, and OSP’s invoices for Buyer Components, Non-Buyer
Components and any other ingredients purchased to produce the Products.  In the event that there has been an upward or
downward change in OSP’s costs for such items (which may be subject to
independent audit) the parties shall in good faith apply the adjustment in
pricing for the Products commensurate with such material increase or decrease
in cost, such change to be effective from the beginning of the following
quarterly pricing period, which will be outlined on a revised Exhibit A.  In addition to this review, Buyer, and Buyer’s
cost, may require an independent audit of OSP’s pricing no more frequently than
twice in each 12-month period.  OSP will
cooperate fully with Buyer’s review and any independent audit conducted in
accordance with this Section.  OSP agrees
to use its best efforts to avoid increases in its cost and to obtain the best
prices possible, consistent with quality standards for the ingredients and
packaging required by the Buyer Specifications for the Products.  Tolling fees, which shall include OSP’s cost
of labor, overhead and profit (“Tolling Fees”), shall be reviewed quarterly,
and may be adjusted annually upon each anniversary of this Agreement as agreed
between the parties.

 

OSP
shall issue its invoice for Products, and Buyer shall remit payment for such
invoices, in accordance with the terms set forth on Exhibit “E”.

 

7.                                       Confidential &
Proprietary Information.

 

(a)                                  The
Buyer Specifications and all information OSP may receive from Buyer concerning
the processing of, production of, marketing of, distribution of, selling of,
strategic plans of, recipes for and quantities of the Products Buyer requests
OSP to process and package, whether such information is conveyed orally or in
written form (including without 

 

 

limitation by e-mail or other electronic communication) or by
observation or in any other manner, shall be treated and regarded as
confidential, proprietary and trade secret information, which is the exclusive
and sole property of Buyer.  In addition,
any recipes, formulations, ingredients, product specifications, production
output, sales volume, costing/financial information, productivity,
research/developmental activities, location of manufacturing or manufacturing
processes used by OSP in the production of the Products or any New Products
shall be treated and regarded as confidential, proprietary and trade secret
information which is the exclusive and sole property of Buyer.

 

OSP shall keep all such information strictly
confidential and secret and shall not divulge, communicate or transmit this
information to third parties nor utilize this information in any commercial
manner, except for the limited purpose of processing and packaging the Products
solely and exclusively for Buyer hereunder. 
OSP shall restrict disclosure of such information only to such
directors, officers, employees and advisors who need such information in order
to perform the obligations imposed by this Agreement.  During production of the Products, OSP shall
not allow access by third parties (other than OSP’s employees or service
providers) to the production and packaging areas in its facility involved in
production for Buyer without Buyer’s prior written consent.  These obligations of confidentiality and
limits on use of said information shall survive the termination or expiration
of this Agreement for a period of five (5) years, except for formulation
information which shall remain confidential indefinitely or until one of the
exceptions to confidentiality specified in subparagraph (c) below is
satisfied.  Upon termination or
expiration of this Agreement, OSP shall return or certify to the destruction of
all confidential information to Buyer.

 

(b)                                 All
information Buyer may receive from OSP after the date of this Agreement
concerning OSP’s facilities, financial and production capabilities, whether
such information is conveyed orally or in written form or by observation, shall
be treated and regarded as confidential, proprietary and trade secret
information, which is the exclusive and sole property of OSP.  Buyer shall keep such information strictly
confidential and secret and shall not divulge, communicate or transmit this
information to third parties nor utilize this information in any commercial
manner, except for the limited purpose of working with OSP in connection with
the processing and packaging the Products hereunder.  Buyer shall restrict disclosure of such
information only to such directors, officers, employees and advisors who need
such information to perform the obligations imposed by this Agreement.  These obligations of confidentiality and
limits on use of said information shall survive the termination or expiration
of this Agreement for a period of five (5) years, except for formulation
information which shall remain confidential indefinitely or 

 

 

until one of the exceptions to
confidentiality specified in subparagraph (c) below is satisfied.  Upon termination or expiration of this
Agreement, Buyer shall return or certify to the destruction of all confidential
information to OSP.

 

(c)                                  Confidential
information of the parties under this Agreement shall include the terms of this
Agreement itself (but only to the extent that Buyer decides in its discretion
to seek confidential treatment of such terms, and OSP acknowledges and agrees
that Buyer may be required to file a copy of this Agreement with the Securities
and Exchange Commission or otherwise make it publicly available).  Confidential information shall not include
information which: (i) is generally known to the public at the time of its
disclosure or becomes generally available to the public at any time thereafter,
(ii) is disclosed to the party receiving the confidential information
hereunder by a third party who is reasonably believed to have the right to
disclose such information, (iii) is known to the receiving party prior to
its disclosure under this Agreement, or (iv) is independently developed by
the receiving party without use of the other party’s confidential information.

 

(d)                                 In
the event of a breach or threatened breach of the provisions of this Section,
the non-breaching party shall be entitled to an injunction restraining the
breaching party from disclosing, in whole or in part any of the
above-referenced information or from rendering any service to any person, firm,
corporation, association, or other entity to whom such information in whole or
in part has been disclosed or is threatened to be disclosed.  Nothing herein shall be construed as
prohibiting non-breaching party from pursuing any other remedies available to
it for such breach or threatened breach, including the recovery of damages.

 

Except as otherwise expressly permitted
herein, OSP shall not utilize any technical or confidential information
provided by Buyer for its own behalf or for any other person or entity
whatsoever at any time during the term of this Agreement, or subsequent to the
termination or expiration of this Agreement.

 

8.                                       Quality
Control.

 

(a)                                  Without
limiting its warranties herein, OSP shall perform the sampling and testing
procedures for the Product in accordance with Buyer’s Specifications and the
quality control procedures for the Product set forth in Exhibit “F” prior
to releasing the Product for delivery to Buyer. 
Should any changes in testing or frequency of such tests be requested by
Buyer, OSP shall have the right to adjust Tolling Charges in Exhibit “A”
to reflect any and all additional costs associated with such test changes.

 

 

(b)                                 All
Products delivered by OSP to Buyer under the terms of this Agreement shall
conform to Buyer’s Specifications, applicable laws and regulations of the
United States Food and Drug Administration, the United States Public Health
Service, and any and all other applicable United States federal, state and
local laws and regulations.  All water
used in connection with the Products, whether it be for processing or cleaning,
shall meet the United States Environmental Protection Agency safe drinking
water standards.  Microbiological,
analytical and environmental testing will be done at OSP’s expense, which
expense shall be included as part of the tolling fee charged by OSP.

 

(c)                                  OSP
warrants that (i) it will perform under this Agreement in accordance with
all the terms hereof, (ii) that its processing of the Products hereunder
shall be in accordance with the highest standards prescribed by the Good
Manufacturing Practices regulations promulgated by the United States Food and
Drug Administration, all applicable United States laws and regulations, and (iii) that
all Products, when delivered to Buyer, shall not be adulterated or misbranded
within the meaning of the United States Federal Food, Drug and Cosmetic Act,
and shall not be articles which may not, under the provisions of Sections 404,
or 505 of the Act, be introduced into interstate commerce.

 

(d)                                 Buyer
shall notify OSP within seven (7) days of shipment of any defects or
discrepancies in the shipped product caused by OSP and OSP shall remedy any
defects or discrepancies caused by OSP by replacement, at no additional cost to
Buyer, of any Product rejected by Buyer for failure to conform to the
requirements of this Agreement.  OSP’s
sole obligation under the prior sentence shall include reimbursing Buyer for all
reasonable transportation, retrieval, storage and destruction costs associated
with the defective Product.  OSP shall
not be required to remedy any defects or discrepancies caused substantially by
inherent defects in Buyer’s Specifications.

 

(e)                                  OSP
shall dispose of any Product rejected by Buyer or not otherwise meeting the
requirements of this Agreement in accordance with Buyer’s instructions.  OSP agrees that it will indemnify and hold
Buyer harmless from any cost, liability or expense resulting from its failure
to dispose of rejected Product in accordance with Buyer’s instructions.  OSP will be responsible for the cost of
normal disposal of Product rejected for failure to satisfy the requirements of
this Agreement.

 

(f)            Upon reasonable
notice, and during OSP’s normal operations, OSP shall permit Buyer’s employees
(including its authorized  agents and
consultants, but not its third-party 
contractors) access to OSP’s facilities utilized in the receiving,
handling, packaging and storage of packaging, ingredients and Products, and
which is not restricted or otherwise having 

 

 

limited access due to other agreements
between OSP and third parties, for the purpose of ascertaining OSP’s compliance
with Good Manufacturing Practices and Buyer Specifications and quality
assurance requirements, provided however, that unless permitted under another
agreement between the parties Buyer shall not have access to any part of OSP’s
facilities which are not used directly in the manufacture of Products or the
receiving, storage, handling or packaging of any Products or ingredients or
which are subject to limited access by agreement of the parties.  Notwithstanding the foregoing, OSP shall have
the final responsibility for complying with all requirements of this Agreement,
the Buyer Specifications, Good Manufacturing Practices and other legal
requirements.  OSP at Buyer’s request,
shall notify Buyer of any discrepancies noted during any inspection of OSP’s
production facilities by the United States Food and Drug Administration, the
United States Public Health Service, any state or any other legally authorized
federal, state or local regulatory agency and shall also provide, upon Buyer’s
request, a list of any discrepancies noted by any authorities relating to the
manufacture, packaging and storage by OSP of the Products, the ingredients and
the packaging materials.

 

(g)         OSP shall keep complete,
true and accurate records with respect to the manufacturing and packaging
process, quality assurance measures, and all other procedures utilized in the
production process.  OSP shall allow
Buyer or its designees reasonable access to these records insofar as they
relate to the Products.

 

(h)         OSP
represents that it has registered its facilities as required under the United
States Food and Drug Administration Bioterrorism Act and shall provide Buyer
and its customers, upon request, a copy of any license, certification or other
information evidencing such registration. 
OSP will remain in compliance with the act through the term of this
Agreement.  OSP is required to contact
Buyer immediately in the case of any of its facilities or any Products are
affected by security violations, theft, or other incidents that may impair
Product integrity.

 

9.                                       Trademark
Protection.

 

(a)          Buyer represents and warrants
that it owns or otherwise has the right to use as its trademark all trademarks
utilized with the Products (the “Trademarks”) and that it owns or has the right
to use the copyrights to all art work, designs, logos and the like (the “Copyrights”)
authorized by Buyer and utilized in the packaging of the Products.  Buyer agrees to indemnify OSP and to defend
and hold it harmless from any claims, suits, loss or damage (including
attorneys’ fees) resulting from an infringement or alleged infringement of the
Trademarks or Copyrights by Buyer or OSP.

 

 

(b)         All packaging designs,
trademarks and labeling for the Products shall be provided or approved by Buyer
in advance and shall remain the exclusive and sole property of Buyer.  OSP shall not utilize, for any purpose
whatsoever, any trade dress, symbols, trade names, trademarks or any of the
packaging materials provided hereunder in any manner inconsistent with the
terms of this Agreement.  OSP further
agrees that it will in no way utilize the Trademarks, Copyrights or pictures of
the Products in any advertising or communication regarding OSP, unless Buyer’s
prior written consent is obtained.

 

10.                                 Indemnification.

 

(a)          OSP Indemnification.  Subject to Paragraph 13 and Paragraph 10(c) below,
OSP will indemnify and hold harmless the Buyer Indemnified Parties from and
against any loss arising directly or indirectly out of or in connection with (a) the
breach of any representation, warranty or obligation of any of OSP under this
Agreement and/or (b) any act, omission or negligence of OSP relating to
the performance of OSP’s obligations to its employees or other third parties
arising in connection with the activities contemplated under this
Agreement.  The foregoing indemnity will
not be limited in any manner whatsoever by any required or other insurance
coverage maintained by OSP.

 

(b)         Buyer Indemnification.  Subject to Paragraph 13 above and Paragraph
10(c) below, Buyer will indemnify and hold harmless OSP Indemnified
Parties from and against any loss arising directly or indirectly out of in
connection with (a) the breach of any representation, warranty or
obligation of Buyer under this Agreement and/or (b) any act, omission or
negligence of Buyer relating to Buyer’ obligations to its employees or other
third parties arising in connection with the activities contemplated under this
Agreement.  The foregoing indemnity will
not be limited in any manner whatsoever by any required or other insurance
coverage maintained by Buyer.

 

(c)          Third Party Claims.  Each indemnified party (the “Notifying Party”)
will promptly notify the indemnifying party (the “Indemnifying Party”) of the
existence of any third party claim, demand or other action giving rise to a
claim for indemnification under this Paragraph 10(c) (a “Third Party Claim”)
and will give the Indemnifying Party a reasonable opportunity to defend the
same at its own expense and with its own counsel provided that the
Notifying Party will at all times have the right to participate in such defense
at its own expense.  If, within twenty
(20) days after receipt of a notice of a Third Party Claim the Indemnifying
Party fails to undertake to so defend, the Notifying Party will have the right,
but not the obligation, to defend and to compromise or settle (exercising
reasonable business

 

 

judgment) the Third Party Claim for the account and at the risk and
expense of the Indemnifying Party.  Each
party will make available to the other, at the other’s expense, such
information and assistance as the other may reasonably request in connection with
the defense of a Third Party Claim.  The
party defending a Third Party Claim will timely provide to the other party all
such information relating to the defense, negotiation and/or settlement of the
Third Party Claim as the other party may reasonably request.

 

(d)   Assistance with Claims.  Subject to Paragraph 10(b) above each
party will, at the request and expense of any other party, furnish such
reasonable assistance as may be required to enable the other party to defend
itself against third party claims threatened or filed in connection with
matters described herein.  Each party’s
obligation under this Paragraph will survive the termination of this Agreement.

 

11.           Force Majeure.  Neither Party shall be responsible for
delays, failure, or omissions due to any cause beyond reasonable control
including but not limited to labor disturbances, riots, fires, earthquakes,
floods, storms, lightning, epidemics, war, disorders, hostilities, or
government regulation.  If OSP is unable
to fulfill its obligations herein due to a Force Majeure event within three
months of such an event, Buyer shall be permitted to immediately terminate this
agreement without penalty upon written notice to OSP.

 

12.           Relationship of
Parties.  This Agreement is not
intended to create, nor should it be construed as creating, any agency, joint
venture, partnership or similar relationship between parties.  Each party will act solely as an independent
contractor and will have no right to act for or bind the other party in any way
or to represent that such party is in any way responsible for any acts or
omissions of the other party.

 

13.           Termination.

 

(a)          Failure of either party
to comply with any of the obligations or conditions herein contained, shall be
a default and shall entitle the non-breaching party to give notice to cure such
default.  If any such default is not
cured within thirty (30) days after receipt of such notice, the non-breaching
party shall be entitled to terminate this Agreement by giving written notice to
take effect immediately.

 

(b)         If any party shall file a
voluntary petition in bankruptcy, be declared bankrupt, make an assignment for
the benefit of creditors or suffer the appointment of a receiver or a trustee
of its assets, that party shall be in breach of this Agreement and the
non-breaching party shall have the right to terminate this Agreement by giving
written notice to take effect immediately.

 

 

(c)          This Agreement may be
terminated by mutual agreement of the parties hereto.

 

(d)         Upon receipt of notice of
termination pursuant to any of the provisions of this Agreement, OSP agrees to
immediately cease production and packaging of the Products unless additional
production is agreed to by the parties. 
Buyer’s liability upon such termination shall be limited to payment for (i) all
finished Products manufactured in accordance with this Agreement up to the date
of termination, and (ii) the Minimum Required Supply of Buyer Components.

 

(e)          In the event of
termination of this Agreement, Buyer shall remove from OSP’s facility, within
thirty (30) days of termination, all Products and other materials to which it
has title.  Any supplied equipment shall
be returned to Buyer in the same condition as it was delivered to OSP,
reasonable wear and tear accepted.

 

14.           Insurance.  OSP agrees to maintain during the entire term
of the Agreement appropriate insurance
at commercially reasonable levels of coverage for the conduct of its business,
including without limitation, commercial and general liability insurance
(including product liability coverage), in minimum amounts of $10,000,000.00
per occurrence for damage, injury and/or death to persons and $1,000,000.00 per
occurrence for damage and/or injury to property.  OSP further agrees to require all of its
delivery personnel to be licensed to drive. 
All policies of liability insurance required to be effected by OSP shall
cover OSP’s employees, agents, and independent contractors and shall include
Buyer as an additional insured on a
primary non-contributory basis, and in addition shall contain cross
liability and severability clauses protecting Buyer with respect to claims by
OSP or other persons as if Buyer were separately insured.  Upon request, OSP shall promptly provide
Buyer with certificates of insurance evidencing such coverage and each
certificate shall indicate that the coverage represented thereby shall not be
canceled nor modified until at least thirty (30) days prior written notice and
copies of its insurance policies have been give to Buyer.

 

15.           Widescale
Defects/Recall.

 

A.            Whenever OSP becomes
aware that any ingredient or component of a Product covered by this Agreement
is or may become harmful to persons or property, or that the Product is
defective in any manner which is or may become harmful to persons or property,
or that a Product is mislabeled, OSP shall immediately give notice thereof to
Buyer and OSP shall provide all relevant information with respect thereto.

 

 

B.            If Buyer determines,
in its sole discretion, that it shall undertake a market withdrawal or recall
of any Product, OSP shall carry out such action as directed by Buyer.  When such actions results from failure to
produce to Buyer Specifications, applicable laws, or otherwise in accordance
with the requirements of this Agreement, OSP shall pay direct costs and expenses
necessary to withdraw, recover, repackage or destroy any affected Product in
accordance with Buyer’s directions.  If
as a result of OSP’s failure to produce to Buyer Specifications, applicable
laws, or otherwise in accordance with the requirements of this Agreement, the
Product must be destroyed, OSP shall pay all costs for disposal and shall
provide Buyer with proof of destruction. 
If the market withdrawal or recall is not as a result of OSP’s errors
and omissions as listed above, Buyer will pay the aforementioned direct costs,
will reimburse OSP for direct expenses generated at Buyer’s discretion and will
pay OSP for the withdrawn cases at the price shown on Exhibit A.  In the case where Buyer has supplied
ingredients and/or packaging materials, and the Product was not produced to
Buyer Specifications, applicable laws, or otherwise in accordance with the
requirements of this Agreement, OSP shall reimburse Buyer for the cost of the
ingredients and packaging materials supplied by Buyer.  OSP shall maintain a written recall procedure
on file at its Company offices.  OSP
shall lot code each production run of Product(s) with formalized tracking
system.  OSP shall give Buyer a copy of
the lot code format prior to use.  The
lot code shall, at minimum, identify the date and production run.

 

16.           Governing Law.  This agreement shall be governed by and
construed in accordance with the State of Illinois.

 

17.           Notices.  All notices and other communications between
the parties given pursuant to this Agreement will be deemed to have been
sufficiently given when delivered by person service; United States Mail,
certified return receipt requested, postage prepaid; sent by a nationally
recognized overnight courier service; or by facsimile a the following address:

 

If to OSP:                       Oak State Products Inc.

775 State Route 251

Wenona, IL 61377

Facsimile: 1-815-853-4625

Attn: President

 

If to Buyer:                    Mrs. Fields
Famous Brands, LLC

Attn: 
Director of Purchasing

With copy to: 
Legal Department

2855 East Cottonwood Parkway, Suite 400

Salt Lake City, UT  84121

Facsimile: 801-736-5944

 

 

or such other address or person as the addressee party may designated
in wiring from time to time in accordance with this Agreement.

 

18.           New Product
Development.  If during the term of
this Agreement Buyer desires to develop and test new products which Buyer may
request OSP to produce, OSP shall at Buyer’s request and on reasonable written
notice from Buyer devote reasonable amounts of production time to the
development and testing of such new products on Buyer’s behalf.  Any services performed by OSP pursuant to
this Section shall be subject to the provisions of this Agreement,
including the provisions of Section 7 relating to Confidential
Information.  In the event that any
request made by Buyer under the provisions of this Section would interfere
with or prevent OSP from manufacturing the Products in accordance with the
terms of this Agreement, OSP shall notify Buyer in writing, and within ten (10) days
of its receipt of such notice, Buyer shall advise OSP whether it should
continue its development and testing of the new products.  Buyer shall pay to OSP the cost of all ingredients
and packaging materials used to manufacture the test products.  Additional costs and fees to be paid by Buyer
will be negotiated and mutually agreed to by the parties prior to any
development work commencing.

 

19.           Risk of Loss and
Insurance.  Title to the Products
shall be and remain with Buyer from the date the Product is delivered to the
carrier for delivery to Buyer.  OSP shall
bear the risk of loss to the Products (either while in storage or in process at
OSP’s plant or any storage facility utilized by OSP with Buyer’s consent) until
the Products are delivered to the carrier for delivery to Buyer.  OSP shall also bear the risk of loss with
respect to any Buyer Equipment so long as the Buyer Equipment remains in OSP’s
facility.

 

20.           Independent
Contractor. It is agreed that OSP is and shall act solely as an independent
contractor and not as an agent, partner or joint venturer of or with Buyer in
the manufacture of the Products and in the performance of any other
undertakings hereunder.

 

21.           Technical and Safety
Assistance.  Buyer shall have the
right, but not the duty, to render any kind of assistance or to participate in
the processing and packaging of the Products to the extent necessary to insure
full performance of this Agreement by OSP. 
The obligation, duty and responsibility for full performance of this
Agreement rests with OSP.

 

22.           Supply of
Equipment  and U.C.C. Filings.  In the event Buyer has agreed to supply
OSP equipment for use in producing the Product, the equipment will be listed on
an exhibit hereto (“Buyer Equipment”). 
As additional Products are added to this Agreement, Buyer may agree to
add additional Equipment to OSP’s facility and the equipment list will be
amended to reflect such additional Equipment. 
Buyer shall maintain ownership of the Equipment at all times throughout
the term of the Agreement and OSP shall not be permitted to utilize the
Equipment to manufacture other products it produces without Buyer’s prior 

 

 

written consent.  Buyer shall identify the equipment in a
manner to notify third parties that the Equipment is the property of
Buyer.  OSP will maintain all Buyer
Equipment while in its possession and is responsible for routine maintenance
including preventative maintenance programs as identified by Buyer or the
Equipment SOPs. In the event a significant repair is needed on any of the
Equipment, the parties will mutually agree on the actions to be taken and the
responsibilities of the parties for the expense involved. OSP shall supply all
equipment other than the Buyer Equipment necessary to produce the Product.  Title to the Buyer Equipment shall be and
remain with Buyer until termination of this Agreement.  Upon reasonable notice, and during OSP’s
normal operations, OSP shall permit Buyer and its designees access to that part
of OSP’s facilities where the Buyer Equipment is located for the purpose of
viewing the operation of the Buyer Equipment. 
Upon termination of this Agreement for any reason, Buyer shall have the
right to retain title to the Buyer Equipment or transfer title thereof to OSP
upon terms to be negotiated.  In the
event that Buyer wishes to sell the Buyer Equipment to third parties, Buyer
agrees to first offer the Buyer Equipment to OSP Products for sale at a price
and on terms specified by Buyer. If Buyer retains title to the Buyer Equipment,
it shall have a reasonable time to remove the Buyer Equipment from the OSP’s
production facility.  Unless otherwise
agreed to in writing Buyer shall be responsible for all costs associated with
the removal and relocation of the Buyer Equipment.

 

OSP acknowledges that it is a bailee with
respect to the Buyer Equipment.    OSP is
also a debtor of Buyer with respect to the Buyer supplied ingredients until
such time as OSP pays Buyer for such ingredients.  OSP agrees to cooperate with Buyer in making
any Uniform Commercial Code security filings or other filings or providing the
notices necessary in Buyer’s reasonable opinion to secure and protect Buyer’s
rights in the Buyer Equipment or the supplied ingredients.

 

23.           No Waiver.            The failure of either
party to assert a right hereunder or to insist upon compliance with any terms
or conditions of this Agreement shall not constitute a waiver of that right or
excuse the subsequent performance or nonperformance of any term or condition by
the other party.

 

24.           Remedies.                                          All
remedies available to either party for breach of this Agreement are cumulative
and may be exercised concurrently or separately. The exercise of one remedy
will not be deemed an election of such remedy to the exclusion of other
remedies.

 

25.           Severability.                              In the event any
provision of this Agreement, in whole or in part, is invalid, unenforceable or
in conflict with the applicable laws or regulations of any jurisdiction, such
provision will be replaced, to the extent possible, with a provision which
accomplishes the original business purposes of the provision in a valid and
enforceable manner, and the remainder of this Agreement will remain unaffected
and in full force provided, however, that if without such invalid
or unenforceable provision the fundamental mutual objectives of the parties
cannot 

 

 

be achieved, Buyer or OSP may terminate this Agreement without penalty
by written notice of termination to the other party.

 

26.           Expenses.              Each party will bear its own expenses in
connection with the negotiation, preparation and execution of this Agreement.

 

27.           Further Assurances.       Each
party agrees to execute such other documents and provide such further
assurances as may be reasonably required from time to time to give effect to
the provisions of this Agreement.

 

28.           Headings.              The headings of the articles, paragraphs
and subparagraphs of this Agreement have been added for the convenience of the
parties and are not to be deemed a part hereof.

 

29.           Counterparts.        This Agreement may be executed in any number of
counterparts, all of which together constitute a single agreement.  In proving this Agreement, it will not be
necessary to produce or account for more than one counterpart executed by the
party with respect to which proof is sought.

 

30.           Amendments in Writing.    Neither the Agreement nor any of its provisions may
be waived, modified or amended except by an instrument in writing signed by
authorized representatives of the parties to this Agreement.

 

31.           Entire Agreement.        The
Agreement constitutes the entire written Agreement between Buyer’s and OSP and
supersedes any and all prior negotiations, understandings and/or Agreements,
oral or written, between the parties to this Agreement with respect to the
subject matter of this Agreement.  The
parties agree that neither party is relying on any statement or promise not
contained in this Agreement.

 

32.           Assignment.         The Agreement shall be binding upon and shall
inure to the benefit of the parties to this Agreement, provided, however, it
shall not be assigned by either Buyer’s or OSP without the prior written
consent of the other party, which consent shall not be unreasonably withheld.

 

33.           Successor.             Any provision of the Agreement which
imposes upon Buyer’s or OSP an obligation after termination or expiration of
the Agreement shall survive termination or expiration of this Agreement and
shall be binding upon Buyer’s and OSP’s successors and assigns.  Buyer and OSP agree to notify the other party
in writing in the event of a purchase, sale, merger or consolidation which
affects the ownership or the financial condition of the other party.

 

34.           Cumulative Remedies.         The rights and remedies above provided to
either party shall be cumulative and in addition to all other rights and
remedies available to either party in law and in equity.

 

 

WITNESS WHEREOF, each of the parties hereto
has executed this Agreement by its duly authorized representatives as of the
date and year first above written.

 

	
   

  	
  Mrs. Fields Famous Brands, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael Ward

  
	
   

  	
  Title:

  	
  Executive Vice President & CLO

  
				

 

 

	
   

  	
  Oak State Products Inc.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David Van Laar

  
	
   

  	
  Title:

  	
  President/CEO

  
				

 

 

EXHIBIT “A”

 

PRODUCTS AND PRICING

 

[INCLUDING BREAKOUT OF COST FOR BUYER COMPONENTS, NON-BUYER COMPONENTS
AND TOLLLING FEE

 

[complete]

 

 

EXHIBIT “B”

 

BUYER SPECIFICATIONS

 

[COMPLETE]

 

 

EXHIBIT “C”

 

BUYER COMPONENTS

 

[COMPLETE]

 

 

EXHIBIT “D”

 

BUYER’S PRODUCTION ESTIMATE

 

(FOR INITIAL TERM)

 

 

[COMPLETE]

 

 

EXHIBIT “E”

 

SEE ATTACHED

 

 

EXHIBIT “F”

 

QUALITY CONTROL PROCEDURES

 

[COMPLETE – INCLUDE RAW MATERIAL RETENTION REQUIREMENTS]Exhibit
10.1

 

officemas 1995

 

 

 

LEASE

 

 

Between

 

RAMLAND REALTY ASSOCIATES L.L.C.,

 

as Landlord,

 

 

and

 

VISION-SCIENCES,
INC.,

 

as  Tenant

 

 

Building:

 

 

One
Ramland Road

Orangeburg,
New York 10962

 

 

TABLE OF CONTENTS

 

STANDARD OFFICE LEASE

 

	
  Article

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE 1

  	
   

  	
  1

  
	
  1.01. Demise

  	
   

  	
  1

  
	
  1.02. Demised Premises

  	
   

  	
  1

  
	
  1.03. Term

  	
   

  	
  2

  
	
  1.04. Rent

  	
   

  	
  2

  
	
  1.05. Payments Due

  	
   

  	
  3

  
	
  1.06.Intentionally omitted

  	
   

  	
  3

  
	
  1.07. Late Charge

  	
   

  	
  3

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2

  	
   

  	
  3

  
	
  2.01. Definitions

  	
   

  	
  3

  
	
  2.02. Headings

  	
   

  	
  6

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3

  	
   

  	
  6

  
	
  3.01. Completion of Premises

  	
   

  	
  6

  
	
  3.02. Tenant’s Work

  	
   

  	
  7

  
	
  3.03. Tenant’s Construction Related Obligations

  	
   

  	
  7

  
	
  3.04. Non-Liability of Landlord

  	
   

  	
  8

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4

  	
   

  	
  8

  
	
  4.01. Commencement Date

  	
   

  	
  8

  
	
  4.02. Consequences of Tenant’s Possession of Premises or Commencement
  Date

  	
   

  	
  9

  
	
  4.03. Waiver of Right to Rescind

  	
   

  	
  9

  
	
  4.04. Early Commencement of Business

  	
   

  	
  9

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5

  	
   

  	
  10

  
	
  5.01. Security

  	
   

  	
  10

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6

  	
   

  	
  10

  
	
  6.01. General

  	
   

  	
  10

  
	
  6.02. Intentionally omitted

  	
   

  	
  11

  
	
  6.03 Submetering

  	
   

  	
  11

  
	
  6.04. Direct Meter

  	
   

  	
  12

  
	
  6.06. Change of Service

  	
   

  	
  12

  
	
  6.07. Additional Installations

  	
   

  	
  13

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7

  	
   

  	
  13

  
	
  7.01. Brokerage

  	
   

  	
  13

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8

  	
   

  	
  14

  
	
  8.01. Definitions of Taxes and Operating Expenses

  	
   

  	
  14

  
	
  8.02. Tax Payments

  	
   

  	
  18

  
	
  8.03. Reduction of Comparison Year Taxes

  	
   

  	
  18

  
	
  8.04. Reduction of Base Tax

  	
   

  	
  18

  
	
  8.05. Tax Payment Pending Protest

  	
   

  	
  19

  
	
  8.06. Adjustment of Expense Payments

  	
   

  	
  19

  
	
  8.07. No Credit

  	
   

  	
  20

  
	
  8.08. Assessment With Other Properties

  	
   

  	
  20

  
	
  8.09. Billing

  	
   

  	
  20

  
	
  8.10. Partial Comparison Year

  	
   

  	
  20

  
	
  8.11. Tax Protests

  	
   

  	
  20

  
	
  8.12  Books
  and Records

  	
   

  	
  20

  
	
  8.13  Right
  of Review

  	
   

  	
  21

  

 

 

	
  ARTICLE 9

  	
   

  	
  21

  
	
  9.01. Parking

  	
   

  	
  21

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10

  	
   

  	
  22

  
	
  10.01. Permitted Uses

  	
   

  	
  22

  
	
  10.02. Prohibited Uses

  	
   

  	
  22

  
	
  10.03. Physical Protection of Premises

  	
   

  	
  23

  
	
   

  	
   

  	
   

  
	
  ARTICLE 11

  	
   

  	
  24

  
	
  11.01. Building Name

  	
   

  	
  24

  
	
  11.02. Tenant Signs

  	
   

  	
  24

  
	
  11.03. Directory

  	
   

  	
  24

  
	
   

  	
   

  	
   

  
	
  ARTICLE 12

  	
   

  	
  24

  
	
  12.01. Services During Non-Regular Business Hours

  	
   

  	
  24

  
	
  12.02. Cooling Tower

  	
   

  	
  25

  
	
   

  	
   

  	
   

  
	
  ARTICLE 13

  	
   

  	
  25

  
	
  13.01. Prohibition Against Assignment, Etc

  	
   

  	
  25

  
	
  13.02. Permitted Subletting

  	
   

  	
  26

  
	
  13.03. Profits

  	
   

  	
  27

  
	
  13.04. Advertising; Listing

  	
   

  	
  27

  
	
  13.05. Prior to Commencement Date

  	
   

  	
  28

  
	
  13.06. Delivery of Sublease Requirement

  	
   

  	
  28

  
	
  13.07. Sublease Requirement

  	
   

  	
  28

  
	
  13.08. Liability for Subtenant

  	
   

  	
  28

  
	
  13.09. Indemnification Against Brokers

  	
   

  	
  28

  
	
   

  	
   

  	
   

  
	
  ARTICLE 14

  	
   

  	
  29

  
	
  14.01. Quiet Enjoyment

  	
   

  	
  29

  
	
   

  	
   

  	
   

  
	
  ARTICLE 15

  	
   

  	
  29

  
	
  15.01. Subordination

  	
   

  	
  29

  
	
  15.02. Attornment

  	
   

  	
  30

  
	
  15.03. Waiver of Termination Right

  	
   

  	
  30

  
	
   

  	
   

  	
   

  
	
  ARTICLE 16

  	
   

  	
  30

  
	
  16.01. Changes to Building

  	
   

  	
  30

  
	
  16.02. Multi-Tenant Floors

  	
   

  	
  31

  
	
   

  	
   

  	
   

  
	
  ARTICLE 17

  	
   

  	
  31

  
	
  17.01. Notice and Compliance With Laws

  	
   

  	
  31

  
	
  17.02. Contest

  	
   

  	
  31

  
	
   

  	
   

  	
   

  
	
  ARTICLE 18

  	
   

  	
  32

  
	
  18.01. Tenant’s Requirements

  	
   

  	
  32

  
	
  18.02. Blanket Policies

  	
   

  	
  32

  
	
  18.03. Tenant’s Compliance

  	
   

  	
  33

  
	
  18.04. Waiver of Subrogation

  	
   

  	
  33

  
	
  18.05 Landlord’s Insurance

  	
   

  	
  33

  
	
   

  	
   

  	
   

  
	
  ARTICLE 19

  	
   

  	
  33

  
	
  19.01. Permitted Changes

  	
   

  	
  33

  
	
  19.02. Substantial Changes

  	
   

  	
  34

  
	
  19.03. Substantial Changes in Excess of $100,000

  	
   

  	
  35

  
	
  19.04. Restricted Changes

  	
   

  	
  35

  

 

 

	
  ARTICLE 20

  	
   

  	
  35

  
	
  20.01. Tenant’s Property

  	
   

  	
  35

  
	
  20.02. Abandonment of Tenant’s Property

  	
   

  	
  35

  
	
  20.03. Leasehold Improvements

  	
   

  	
  35

  
	
  20.04. End of Term

  	
   

  	
  36

  
	
  20.05. Removal by Landlord

  	
   

  	
  36

  
	
   

  	
   

  	
   

  
	
  ARTICLE 21

  	
   

  	
  36

  
	
  21.01. Tenant’s Required Repairs

  	
   

  	
  36

  
	
  21.02. Windows

  	
   

  	
  36

  
	
  21.03. Damage to Building

  	
   

  	
  37

  
	
   

  	
   

  	
   

  
	
  ARTICLE 22

  	
   

  	
  37

  
	
  22.01. Landlord’s Obligations

  	
   

  	
  37

  
	
  22.02. Cleaning

  	
   

  	
  37

  
	
  22.03. Extraordinary Refuse

  	
   

  	
  38

  
	
  22.04. Quality of Repairs

  	
   

  	
  38

  
	
  22.05. Required Changes

  	
   

  	
  38

  
	
   

  	
   

  	
   

  
	
  ARTICLE 23

  	
   

  	
  39

  
	
  23.01. Access and Repair

  	
   

  	
  39

  
	
  23.02. Tenant’s Requirements

  	
   

  	
  39

  
	
  23.03. Additional Tenant Requirements

  	
   

  	
  39

  
	
   

  	
   

  	
   

  
	
  ARTICLE 24

  	
   

  	
  40

  
	
  24.01. Elevators

  	
   

  	
  40

  
	
  24.02. Interruption of Services

  	
   

  	
  40

  
	
   

  	
   

  	
   

  
	
  ARTICLE 25

  	
   

  	
  42

  
	
  25.01. Tenant’s Access to Demised Premises

  	
   

  	
  42

  
	
   

  	
   

  	
   

  
	
  ARTICLE 26

  	
   

  	
  42

  
	
  26.01. Lines Through Demised Premises

  	
   

  	
  42

  
	
  26.02. Access to Demised Premises

  	
   

  	
  42

  
	
  26.03. Access Upon Emergency

  	
   

  	
  43

  
	
  26.04. Access During Twelve Months

  	
   

  	
  43

  
	
   

  	
   

  	
   

  
	
  ARTICLE 27

  	
   

  	
  43

  
	
  27.01. Access for Protection

  	
   

  	
  43

  
	
  27.02. No Liability

  	
   

  	
  44

  
	
   

  	
   

  	
   

  
	
  ARTICLE 28

  	
   

  	
  44

  
	
  28.01. Notice to Landlord

  	
   

  	
  44

  
	
   

  	
   

  	
   

  
	
  ARTICLE 29

  	
   

  	
  44

  
	
  29.01. No Liability of Landlord

  	
   

  	
  44

  
	
  29.02. Indemnification

  	
   

  	
  44

  
	
  29.03. Exculpation

  	
   

  	
  45

  
	
   

  	
   

  	
   

  
	
  ARTICLE 30

  	
   

  	
  45

  
	
  30.01. Notice and Repair Obligation

  	
   

  	
  45

  
	
  30.02. Abatement of Rent

  	
   

  	
  46

  
	
  30.03. Termination Rights

  	
   

  	
  46

  
	
  30.04. Termination Upon Casualty

  	
   

  	
  46

  
	
  30.05. Non-Liability of Landlord

  	
   

  	
  47

  
	
  30.06. Insurance on Tenant’s Property

  	
   

  	
  47

  

 

 

	
  30.07. Waiver of Statutory Protection.

  	
   

  	
  47

  
	
   

  	
   

  	
   

  
	
  ARTICLE 31

  	
   

  	
  47

  
	
  31.01. Landlord’s Rights to Award

  	
   

  	
  47

  
	
  31.02. Full Taking

  	
   

  	
  47

  
	
  31.03. Partial Taking

  	
   

  	
  48

  
	
  31.04. Tenant’s Rights to Award

  	
   

  	
  48

  
	
  31.05. Reconstruction

  	
   

  	
  48

  
	
   

  	
   

  	
   

  
	
  ARTICLE 32

  	
   

  	
  48

  
	
  32.01. Surrender

  	
   

  	
  48

  
	
  32.02. Holdover

  	
   

  	
  49

  
	
   

  	
   

  	
   

  
	
  ARTICLE 33

  	
   

  	
  49

  
	
  33.01. Prior to Term

  	
   

  	
  49

  
	
  33.02. During Term

  	
   

  	
  50

  
	
  33.03. Adequate Assurances

  	
   

  	
  50

  
	
   

  	
   

  	
   

  
	
  ARTICLE 34

  	
   

  	
  51

  
	
  34.01. Re-Entry; Summary Proceedings

  	
   

  	
  51

  
	
  34.02. Remedies Cumulative

  	
   

  	
  51

  
	
  34.03. Retention of Funds

  	
   

  	
  51

  
	
   

  	
   

  	
   

  
	
  ARTICLE 35

  	
   

  	
  52

  
	
  35.01. Damages

  	
   

  	
  52

  
	
  35.02. Recovery of Damages

  	
   

  	
  53

  
	
  35.03. Additional Damages

  	
   

  	
  53

  
	
   

  	
   

  	
   

  
	
  ARTICLE 36

  	
   

  	
  53

  
	
  36.01. Waiver of Redemption Rights

  	
   

  	
  53

  
	
  36.02. No Designation of Payments

  	
   

  	
  53

  
	
  36.03. Waiver of Jury Trial

  	
   

  	
  53

  
	
   

  	
   

  	
   

  
	
  ARTICLE 37

  	
   

  	
  54

  
	
  37.01. Performance of Tenant’s Obligations

  	
   

  	
  54

  
	
   

  	
   

  	
   

  
	
  ARTICLE 38

  	
   

  	
  54

  
	
  38.01. Consents and Approvals

  	
   

  	
  54

  
	
  38.02. Expenses

  	
   

  	
  55

  
	
   

  	
   

  	
   

  
	
  ARTICLE 39

  	
   

  	
  55

  
	
  39.01. Rules and Regulations

  	
   

  	
  55

  
	
   

  	
   

  	
   

  
	
  ARTICLE 40

  	
   

  	
  55

  
	
  40.01. Amendments for Financing

  	
   

  	
  55

  
	
   

  	
   

  	
   

  
	
  ARTICLE 41

  	
   

  	
  55

  
	
  41.01. Notice to Mortgagees and Lessors

  	
   

  	
  55

  
	
   

  	
   

  	
   

  
	
  ARTICLE 42

  	
   

  	
  56

  
	
  42.01. Successors and Assigns

  	
   

  	
  56

  
	
  42.02. Partnership Tenant

  	
   

  	
  56

  
	
   

  	
   

  	
   

  
	
  ARTICLE 43

  	
   

  	
  57

  
	
  43.01. Waivers

  	
   

  	
  57

  
	
  43.02. Surrender; Payments

  	
   

  	
  57

  

 

 

	
  ARTICLE 44

  	
   

  	
  58

  
	
  44.01. Notices

  	
   

  	
  58

  
	
   

  	
   

  	
   

  
	
  ARTICLE 45

  	
   

  	
  58

  
	
  45.01. Tenant’s Estoppel

  	
   

  	
  58

  
	
  45.02. Landlord’s Estoppel

  	
   

  	
  59

  
	
  45.03. Recording

  	
   

  	
  59

  
	
   

  	
   

  	
   

  
	
  ARTICLE 46

  	
   

  	
  59

  
	
  46.01. Entire Agreement

  	
   

  	
  59

  
	
  46.02. Partial Invalidity

  	
   

  	
  59

  
	
  46.03. Applicable Law

  	
   

  	
  59

  
	
  46.04.  Consequential
  Damages

  	
   

  	
  59

  
	
  46.05. Lease Submission

  	
   

  	
  59

  
	
  46.06. Asterisks

  	
   

  	
  60

  
	
  46.07. Confidentiality

  	
   

  	
  60

  
	
  46.08. Right to Relocate

  	
   

  	
  60

  
	
  46.09 Authority

  	
   

  	
  61

  
	
  46.10 Lease Condition

  	
   

  	
  61

  
	
   

  	
   

  	
   

  
	
  ARTICLE 47

  	
   

  	
  61

  
	
  47.01 Termination Option

  	
   

  	
  61

  
	
   

  	
   

  	
   

  
	
  ARTICLE 48

  	
   

  	
  63

  
	
  48.01 Right Of First Offer

  	
   

  	
  63

  
	
   

  	
   

  	
   

  
	
  Article 49

  	
   

  	
  65

  
	
  49.01.  IDA
  Contingency Clause

  	
   

  	
  65

  
	
   

  	
   

  	
   

  
	
  Exhibit “A” -
  Floor Plan and Location Plans

  	
   

  	
   

  
	
  Exhibit “A-1” –
  Right of First Offer – Additional Space

  	
   

  	
   

  
	
  Exhibit “B” -
  Estoppel Letter

  	
   

  	
   

  
	
  Exhibit “C” –
  Intentionally omitted

  	
   

  	
   

  
	
  Exhibit “D” - Commencement Date Agreement

  	
   

  	
   

  
	
  Exhibit “E” –
  Tenant’s Sign Specifications

  	
   

  	
   

  
	
  Exhibit “F” –
  Termination Fee Schedule

  	
   

  	
   

  

 

 

STANDARD OFFICE LEASE

 

LEASE, dated the
of April, 2008, between RAMLAND REALTY
ASSOCIATES L.L.C., a New York limited liability company, having its
principal place of business at 100 Clearbrook Road, Elmsford, New York 10523,
(hereinafter called “Landlord”), and VISION-SCIENCES,
INC., a Delaware corporation, having its principal place of business
at 40 Ramland Road, Orangeburg, New York 10962 (hereinafter called “Tenant”).

 

WHEREAS, Landlord
is the owner of the Building (as defined in Section 2.01 (a)) located at One Ramland Road, Town of Orangeburg, County of
Rockland, and State of New York; and

 

WHEREAS, Landlord
and Tenant desire that a lease be made by Landlord to Tenant of certain space
in the Building for the term of this lease, for the rent and upon and subject
to the covenants, agreements, terms, conditions, limitations, exceptions and
reservations herein contained;

 

NOW, THEREFORE,
Landlord and Tenant hereby covenant and agree as follows:

 

ARTICLE 1

 

Demise-Premises-Term-Rent

 

1.01. Demise.

 

Landlord hereby demises and leases to Tenant, and
Tenant hereby takes and hires from Landlord, the premises hereinafter mentioned
for the term hereinafter stated, for the rent hereinafter reserved and upon and
subject to the covenants, agreements, terms, conditions, limitations,
exceptions and reservations of this lease.

 

1.02. Demised
Premises.

 

The premises
hereby leased to Tenant are a portion of the first (1st) floor of the Building consisting of approximately 34,795 square
feet, as shown on the floor and location plans annexed hereto and marked
as Exhibit A.  The terms “Demised
Premises” or “Premises” at any given time shall mean the premises described
above, subject to the provisions of this lease.

 

Tenant
and its invitees shall also be entitled to the non-exclusive right to use the
physical fitness facility, if any, and the cafeteria, if any, located within
the Building, together with other occupants of the Building.  Notwithstanding anything herein to the
contrary, Tenant acknowledges that (i) the physical fitness
facility is provided as an amenity for tenants of the Building and is
for use only by said tenants and their respective employees. Landlord  hereby makes no representation that such
facility shall remain in place and be available to Tenant and its employees or
any other tenants and their employees throughout the Lease term or any
extensions thereof and (ii)  the
cafeteria is not in operation as of the date hereof and that Landlord shall
have no obligation to operate the cafeteria or to make arrangements with a
third party to operate the cafeteria.

 

Notwithstanding anything
herein to the contrary, Landlord will not discontinue the physical fitness facility unless said space
is necessary to accommodate the requirements of a third party to lease space in
the Building.

 

So
long as there continues to be cafeteria space in the Building, Tenant shall be
entitled, upon prior notice to Landlord, to use the cafeteria space for private
training functions, not more frequently than one (1x) per month, at no charge, provided,
however, Tenant shall be responsible 

 

1

 

for
the cost of cleaning said cafeteria space after such use and provided further
that if the cafeteria is being operated as a cafeteria, Tenant’s right to use
said space for private training functions shall be after regular business
hours. If Tenant desires to utilize said cafeteria space more frequently than
one (1x) per month, then, subject to availability, Tenant may do so upon terms
and conditions (including license fee) mutually agreeable to Landlord and
Tenant. Landlord
hereby makes no representation that such cafeteria space shall remain in place and be available to Tenant
throughout the Lease term and Landlord may lease said space to a third party.

 

Tenant
acknowledges that an elevator and stairwell is located in said lobby area and
that occupants may use said elevator and stairwell to gain access to said lobby
area. Notwithstanding the foregoing, Landlord will provide in the lease of any
third party in the Building Office Space after the date hereof that said third
party and its invitees shall not be permitted to use the stairway or elevator
which lead to the lobby area on the Ramland Road side of the Building, except
as a means of emergency ingress or egress, and Landlord will  use commercially reasonable
efforts to discourage
the use of said stairway or elevator to the lobby area on the Ramland Road side
of the Building by other occupants of the Building including, without
limitation, by
installing a fire door on the second floor 
of said stairwell and posting Tenant’s name on the first floor elevator
button; notwithstanding anything herein to the contrary,  Landlord shall have no liability for failure
to prevent use of said lobby by said occupants.

 

1.03. Term.

 

The term of this lease and the
estate hereby granted (hereinafter collectively called the “term of this lease”)
shall commence on the Commencement Date (as defined in Section 4.01) and
shall expire on the last day of the month in which occurs the day before the
ten (10) year anniversary of the Commencement Date (such expiration date
being hereinafter called the “Expiration Date”), or on such earlier date upon
which the term of this lease may expire or be terminated pursuant to any of the
provisions of this lease or pursuant to law. Promptly following the
determination of the Commencement Date, the parties shall enter into a
supplementary written statement prepared by Landlord setting forth the
Commencement and Expiration Dates in the form attached hereto and made a part
hereof as Exhibit D. Any failure by Tenant to execute and deliver such
statement shall not affect the Landlord’s determination of the Commencement and
Expiration Dates, and such statement shall be deemed approved and accepted if
not received back by Landlord or objected to by Tenant within twenty (20) days
of submission by Landlord to Tenant.

 

1.04.  Rent.

 

The
rent reserved under this lease (hereinafter called the “rent”), for the term
hereof, shall be and shall consist of:

 

(a)                                  fixed annual rent (subject to the annual credit provided for in Section 5.01 hereof,
if applicable), as follows:

 

	
  Months

  	
   

  	
  Yearly Rate

  	
   

  	
  Monthly

  Installments

  	
   

  	
  Annual Rate Per

  Rentable Sq. Ft.

  	
   

  
	
  1 - 60

  	
   

  	
  $

  	
  215,381.05

  	
   

  	
  $

  	
  17,948.42

  	
   

  	
  $

  	
  6.19

  	
   

  
	
  61 - 96

  	
   

  	
  $

  	
  478,083.30

  	
   

  	
  $

  	
  39,840.28

  	
   

  	
  $

  	
  13.74

  	
   

  
	
  97 - 102

  	
   

  	
  $

  	
  495,480.80

  	
   

  	
  $

  	
  41,290.07

  	
   

  	
  $

  	
  14.24

  	
   

  
	
  103 - 120

  	
   

  	
  $

  	
  643,707.50

  	
   

  	
  $

  	
  53,642.29

  	
   

  	
  $

  	
  18.50

  	
   

  

 

(which sums are
hereinafter referred to as “fixed rent”) which fixed rent shall be payable
without notice, in equal monthly installments in advance on the first day of
each and every calendar month of the term of this lease (except that if the
first day of the term of this lease is other than the first day of a calendar
month, the first monthly installment, prorated to the end of said calendar
month, shall be payable on such first day), plus

 

2

 

(b)                                 such other sums of money as shall become
due and payable hereunder (which other sums are collectively hereinafter
referred to as “additional rent”), which additional rent shall be payable as
hereinafter provided, 

 

all to be paid to
Landlord or its designated agent, at its principal place of business as
specified on the first page of this lease, or such other place as Landlord
may designate in writing, in lawful money of the United States of America,
without abatement, deduction or set-off.

 

1.05. Payments
Due.

 

Tenant covenants and agrees to pay the rent and other
charges herein reserved promptly, as and when the same shall become due and
payable, without notice or demand therefor. 
If no date shall be set forth herein for the payment of additional rent,
then such sum shall be due and payable within 15 business days after the date
upon which Landlord demands such payment. 
Landlord acknowledges receipt of the payment of fixed rent for the first
full calendar month of the term, by check, subject to collection.

 

1.06.Intentionally
omitted.

 

1.07. Late
Charge.

 

If any monies owing by Tenant to Landlord are not paid
within 5 days of the date same are
due and payable pursuant to the provisions of this lease, Tenant shall pay to
Landlord, in compensation for the additional administrative, bookkeeping and
collection expenses incurred by Landlord by reason of such late payment, a sum
calculated by multiplying the amount of money not paid timely by the greater of
(a) 13%, or (b) three (3) percentage points in excess of the
prime rate then established by JPMorgan Chase Bank, dividing the product by 365
and multiplying the quotient by the number of days between the date such monies
were payable and the date such monies are in fact paid. Nothing herein shall be
intended to violate any applicable law, code or regulation, and in all
instances all such charges shall be automatically reduced to any maximum
applicable legal rate or charge.  Such
compensation shall be without prejudice to any of Landlord’s rights and
remedies hereunder. Notwithstanding anything in this Article to the
contrary, Landlord shall waive a late charge one time during each lease year
provided, however, the installment of fixed rent or additional rent so due is
paid by the fifteenth (15th) day of the month. 
Payment received subsequent to the fifteenth (15th) of the month during
these grace periods shall require a late charge to be reassessed and added to
Tenant’s obligations hereunder.

 

ARTICLE 2

 

Definitions

 

2.01. Definitions.

 

For
all purposes of this lease, and all agreements supplemental hereto, the terms
defined in this Section shall have the meanings specified in this Section unless
the context otherwise requires:

 

(a)                                  The Building shall mean the
building and improvements serving same,
erected on the Real Property (as
defined in Section 2.01(b) hereof), of which Building the
Demised Premises are a part, and all replacements of or additions to such Building. Landlord reserves the right to
construct additional building(s) upon the Real Property so long as Tenant’s
use of and access to the Demised Premises 
and parking spaces is not materially adversely affected.  The Building shall be 

 

3

 

conclusively deemed to be
232,000 square feet. That portion of the Building consisting of office space (“Building
Office Space”) shall be conclusively deemed to be 151,000  square feet)
and that portion of the Building consisting of flex space (i.e. space generally
to be used for warehouse and distribution, laboratory, manufacturing or other
non-office use) (“Building Flex Space”) shall be conclusively deemed to be
81,000 square feet. Notwithstanding anything herein to the contrary, including,
without limitation,
the Permitted Use pursuant to Article 10 hereof, the Demised Premises are
located in the Building Office Space and such Permitted Use is permitted in the
Demised Premises notwithstanding that the Demised Premises is located in the
Building Office Space.

 

(b)                                 Real Property shall mean the tax lot of which the
Building is a part, commonly known as Tax Map No. 73.20-1-24.

 

(c)                                  The Rentable Area of the Demised
Premises, shall be conclusively deemed to be 34,795 square feet.

 

(d)                                 The term mortgage shall include an
indenture of mortgage, a deed of trust to a trustee, a pledge or any other
instrument creating a lien on or other security interest in the Real Property,
and the term mortgagee shall include any such mortgagee, trustee and any
other holder of rights under a mortgage.

 

(e)                                  The terms include and including
shall each be construed as if followed by the phrase “without being limited to”.

 

(f)                                    Landlord shall mean only the owner, or the mortgagee in
possession, for the time being of the Building or of the Real Property and
Building  (or the owner of a lease or
sublease of the Building or of the Real Property and Building  of which the Demised Premises form a part, so
that in the event of any conveyance, sale or sales of said Building or Real
Property and Building or an assignment, termination or surrender of said lease
or sublease or in the event of a lease or sublease of said Building, or of the
Real Property and Building, the said Landlord shall be and hereby is entirely
freed and relieved of all covenants and obligations of Landlord hereunder,  provided that the parties or their successors
in interest, or between the parties and the purchaser, at any such sale or
other transaction described above, or the said lessee or transferee of the
Building, or of the Real Property and Building, that the purchaser or the
lessee or transferee of the Building, or the Real Property and Building has, in
writing, assumed and agreed to carry out any and all covenants and obligations
of Landlord thereafter accruing hereunder, including the return of any security deposit.

 

(g)                                 Tenant shall mean and include, at any given time, Tenant
herein named and each successor to or assignee of any interest of Tenant herein
named under this lease pursuant to the terms of this lease.

 

(h)                                 The obligations of this lease, and
words of like import, shall mean the covenants to pay rent and additional rent
under this lease and all of the other covenants, agreements, terms, conditions
and limitations contained in this lease.

 

(i)                                     Tenant’s  obligations  hereunder, and words of
like import, and Landlord’s  obligations  hereunder, and
words of like import, shall mean the obligations of this lease which are to be
performed, observed, or kept by Tenant, or by Landlord, as the case may
be.  Reference to performance of either
party’s obligations under this lease shall be construed as “performance,
observance and keeping”.

 

(j)                                     The term related  corporation
shall mean a corporation, individual, partnership, or other business entity,
which directly or indirectly, controls, is controlled by, or is under common
control with, another corporation, individual, partnership, or other business
entity.

 

(k)                                  The term successor  corporation
shall mean a corporation or other business entity into or with which another
corporation or other business entity shall be merged or consolidated or 

 

4

 

to which all or
substantially all of the assets of such other corporation or other business
entity shall be transferred.

 

(l)                                     The term laws  and  requirements
of  public  authorities, and words of like import, shall
mean laws and ordinances of any or all of the federal, state, city, and county
governments and rules, regulations, orders and directives of any or all
departments, subdivisions, bureaus, agencies or offices thereof, or of any
other governmental, public or quasi-public authorities, having jurisdiction of
the Real Property or Building, and the directions of any public officer pursuant
to law.

 

(m)                               The term requirements  of  insurance
bodies, and words of like import, shall mean rules, regulations, orders
and other requirements of the New York Board of Fire Underwriters or the New
York Fire Insurance Rating Organization or any other similar body performing
the same or similar functions and having jurisdiction over the Real Property,
Building or Demised Premises.

 

(n)                                 The words repair and repairs
shall be deemed to include restoration, replacement and rebuilding.

 

(o)                                 All references in this lease to numbered Articles,
numbered Sections and lettered Exhibits, are references to
Articles and Sections of this lease, and Exhibits annexed to (and thereby made
part of) this lease, as the case may be, unless expressly otherwise designated
in the context.

 

(p)                                 The term unavoidable  delays
shall mean delays due to strike, lockout or other labor or industrial
disturbance (whether or not on the part of employees of either party hereto),
civil disturbance, order of any government, court or regulatory body claiming
jurisdiction, act of the public enemy, or riot, sabotage, blockage, embargo,
failure or inability to secure materials or labor by reason of priority or
similar regulation or order of any government or regulatory body, lightning,
earthquake, fire, storm, hurricane, flood, washout, explosion, act of God, or
any cause whatsoever beyond the reasonable control of either party hereto
whether or not similar to any of the causes hereinabove stated, excluding
however, the inability of either party to obtain any financing which may be
necessary to carry out its obligations.

 

(q)                                 Regular  business  hours,  business  days
and words of like import shall mean 7:00 A.M. to 7:00 P.M. on all
days other than Saturdays, Sundays, all days observed as holidays by the United
States, State of New York or labor unions representing individuals servicing
the Building in behalf of Landlord. Notwithstanding anything herein to the
contrary, Tenant shall have access to the Demised Premises and Building 24
hours a day, 7 days a week, 365 days a year, subject to the terms and
provisions of this Lease and laws and requirements of public authorities.

 

(r)                                    The word invitee, relating to
either Landlord or Tenant, shall mean any employees, agents, visitors,
customers, contractors, licensees, or other parties claiming under, or in the
Building, by permission or sufferance of, Landlord or Tenant, as the case may
be.

 

(s)                                  Tenant’s Property shall mean all movable partitions,
lighting fixtures, special cabinet work, business and trade fixtures, machinery
and equipment, vaults and all other property, whether or not attached to or
built into the Premises and which is installed in the Premises by or for the
account of Tenant at its expense and can be removed without damage to the
Building, and all furniture, furnishings and other articles of personal
property owned by Tenant and located in the Premises.

 

(t)                                    A lease year shall mean the 12
month period commencing with the Commencement Date, and ending the day
preceding the first anniversary of the Commencement Date (except that if the
Commencement Date shall occur on a day other than the first day of a calendar
month, such period shall commence with the Commencement Date and end with the
last day of the 12th full calendar month thereafter) and each 12 month period
thereafter, all or parts of which falls within the term of this lease.

 

(u)                                 In each
instance in this Lease in which the words “Tenant’s default”, “default of
Tenant”, “Tenant’s failure” or “failure of Tenant”, or words of similar import
appear, it shall be 

 

5

 

deemed
that the words “beyond the expiration of any applicable grace and notice
periods” be added thereafter.

 

(v)                                 Notwithstanding
anything to the contrary herein, Landlord agrees not to enter the Premises
unless reasonable advance notice is given to Tenant and a representative of
Tenant is present, except in the case of an emergency.

 

2.02.  Headings.

 

The Article and Section headings in this
lease and the Index annexed to this lease are inserted only as a matter of
convenience, and are not to be given any effect whatsoever in construing this
lease.

 

ARTICLE 3

 

Completion of the Demised Premises -

 

Mechanics’ Liens

 

3.01.  Completion
of Premises.

 

(a)                                  Landlord will complete
all the work in the Demised Premises (including,
without limitation, construction of demising walls) as set forth in the Work
Letter attached hereto and made part hereof, upon the terms and conditions
specified in such Work Letter.

 

(b)                                 Landlord’s agreement to do the work in
the Demised Premises as set forth in the Work Letter shall not require it to
incur overtime costs and expenses and shall be subject to unavoidable
delays.  Except as otherwise provided herein, Landlord has made, and makes,
no representations as to the date when the Demised Premises will be ready for
Tenant’s occupancy, and notwithstanding any date specified in this lease as the
Commencement Date, it is understood that the same is merely an estimate.

 

(c)                                  Landlord
represents that to Landlord’s knowledge, as of the date hereof:  (i) the Premises are free from all
occupancies or tenancies whatsoever; (ii) no other tenant or occupant of
the Building has been granted a right which would prohibit or limit Tenant’s
permitted uses under this Lease; (iii) Landlord has full power and
authority to enter into this Lease and the person executing this Lease on
behalf of Landlord is authorized to do so; (iv) there are no ground leases
and/or mortgages which in any way prohibit or interfere with the use of the
Premises by Tenant for the purposes permitted under this Lease or the term of
this Lease, and Landlord shall not permit or suffer any such ground lease or
mortgage to be placed against the Building which would prohibit or interfere
with such permitted uses or the term of this Lease; and (v) Landlord has
received no notice of any violations affecting the Premises or the Building,
and Landlord has no knowledge of any condition which, with the giving of notice
and the passage of time, would constitute a violation, and Tenant shall not be
responsible for any violations against the Premises, nor against the Building
as of the commencement of the term of this Lease, whether or not of record.

 

Landlord
warrants that as of the Commencement Date: (i) all Building systems
(including, but not limited to, electrical, mechanical, plumbing, heat,
ventilation, air conditioning (all of the heat, ventilation, air conditioning
in a manner so as to exclusively service the Demised Premises), sprinkler and
life safety) and other facilities and services which Landlord is obligated to
provide to Tenant under this Lease, will be installed, and in good working
order and condition; (ii) the roof of the Building will be free from
leaks; (iii) all utilities and submeters therefor will have been installed
in the Demised Premises, and will be in good working order and condition; and (iv) the
certificate of occupancy issued for the Demised Premises will not prohibit
Tenant from use of the Demised Premises for the purposes permitted under this
Lease. Notwithstanding 

 

6

 

anything herein to the
contrary, the items set forth in clauses (i), (iii) and (iv) hereinabove
shall be performed as part of the Work, the cost of which shall be part of the
Tenant Improvement Costs, and paid for as provided in the Work Letter.

 

3.02.  Tenant’s Work.

 

(a)                                  If Tenant shall employ or use any
contractor or subcontractor other than Landlord in the performance of any work
in connection with Tenant’s initial occupancy, which work Tenant shall not
commence until after the Commencement Date, all of Tenant’s duties and
obligations set forth in Article 19 (relating to Tenant’s duties and
obligations in making Tenant’s Changes) shall be applicable to and binding upon
Tenant with respect to any such work. Notwithstanding anything herein to the
contrary, Landlord will permit Tenant and its agents to enter, as licensees
only, the Demised Premises prior to the Commencement Date so that Tenant may
install telephone and data wiring and lines, such access shall be subject to
and in accordance  with Paragraph 13 of
the Workletter attached hereto and made a part hereof.

 

(b)                                 If Tenant shall employ or use any
contractor other than Landlord in the performance of any work, such work shall
be conducted in accordance with all laws and requirements of public authorities
and requirements of insurance bodies, in a good and workmanlike manner, and in
such manner as not to materially interfere with or delay the work of Landlord’s
contractors and subcontractors in the Building, or to impose any additional
expense upon Landlord in the construction or operation of the Building, and so
as to maintain harmonious labor relations in the performance of work in the
Building.   Without limiting the
generality of the foregoing, Tenant shall adopt a work schedule in conformity
with the schedule of Landlord’s contractors and subcontractors in connection
with work performed by Tenant’s contractors or subcontractors prior to the
Commencement Date.  Tenant agrees that
its contractors and subcontractors shall employ people and means to ensure the
progress of the work in the Building without interruption on account of
strikes, work stoppage or other similar cause for delay.  At any and all times while Landlord’s and
Tenant’s installations are being performed by Tenant’s designated contractor,
Landlord shall be entitled to have a representative or representatives on the
site for the purpose of inspecting same and for such purpose such
representative or representatives shall have reasonable access to all parts of
the Demised Premises.

 

(c)                                  Landlord
agrees, provided Landlord shall not incur any out-of-pocket expenses in
connection with same, to assist Tenant in the procurement of any licenses,
permits, “sign-offs”, approvals, or certificates which may be required by any
governmental or quasi-governmental agency or authority with respect to Tenant’s
alterations and leasehold improvements in and to the Premises, or with respect
to the obtaining of any services, utilities or facilities from the public
utility corporation(s) or other provider/supplier supplying the same to
the Building.  Landlord agrees to execute
any reasonable documents which are required by any such governmental or
quasi-governmental agency or authority, or public utility corporation(s) or
other provider/supplier.

 

3.03.  Tenant’s Construction Related Obligations.

 

Tenant, at its expense, and with diligence and
dispatch, shall procure the cancellation or discharge of all notices of
violation arising from or otherwise connected with work performed, or alleged
to have been performed, by its contractor(s) and which shall be issued by
the Department of Building of the Town of Orangeburg or any other public
authority having or asserting jurisdiction. 
Tenant shall defend, indemnify and save harmless Landlord against any
and all mechanic’s and other liens and financing statements, conditional bills
of sale, chattel mortgages or other financing or title retention devices, filed
in connection therewith and against all costs, expenses and liabilities
(including reasonable attorney’s fees) incurred in connection with any such
lien, financing statement, conditional bill of sale, chattel mortgage or other
financing or title retention devices, or any action or proceeding brought
thereon.  In connection therewith,
Tenant, at its expense, shall procure the satisfaction or discharge of all such
liens, financing statements, conditional bills of sale, chattel mortgages and
other financing or title retention devices within 15 days after the filing or 

 

7

 

recording of
same.  Nothing herein contained, however,
shall prevent Tenant from contesting, in good faith and at its own expense, any
such notice of violation, lien, financing statement, conditional bill of sale,
chattel mortgage, or other financing or title retention devices provided that (i) in
case of a notice of violation, Tenant shall comply with the provisions of Section 
17.01, and (ii) in case of a lien, financing statement, conditional bill
of sale, chattel mortgage, or other financing or title retention device Tenant
shall have accomplished the discharge thereof by bonding or otherwise within 15
days after notice of the filing or recording of the same.

 

3.04.  Non-Liability of Landlord.

 

Neither Landlord nor Tenant nor any of their
respective agents, employees, representatives, contractors or subcontractors
shall have any power or authority to do any act or thing or to make any
contract or agreement which will bind the other nor (with respect to Tenant
only) which may create or be the foundation for any mechanic’s lien or other
lien or claim upon or against Landlord or Landlord’s interest in the Real
Property; and, further, Landlord shall have no responsibility to Tenant or to
any architect, engineer, contractor, subcontractor, supplier, materialman,
workman or other person, firm or corporation who shall engage in or participate
in the performance of additional work or any installation, alteration or
improvement to be performed or made by Tenant under any of the terms of this
lease, or otherwise, unless Landlord shall expressly undertake such obligation
by an agreement in writing, signed by Landlord, and made between Tenant and
Landlord or such other party.

 

ARTICLE 4

 

Commencement Date-Earlier Possession

 

4.01.  Commencement Date.

 

As used herein, the term “Commencement Date” shall
mean the earlier of (i) the date Tenant shall commence the conduct of
business in and from the Demised Premises, or (ii) the date when the
Demised Premises are ready for occupancy. 
The Demised Premises shall be deemed “ready for occupancy” on the
earliest date on which all of the following conditions shall have been met:

 

(a)                                  The work required to be performed by
Landlord in the Demised Premises pursuant to the Workletter attached hereto and
made a part hereof has been substantially completed; and it shall be deemed so
completed notwithstanding the fact that minor or insubstantial details of
construction, mechanical adjustment, or decoration remain to be performed, the
completion and/or noncompletion of which does not materially interfere with
Tenant’s normal use and occupancy of the Demised Premises and Landlord has
delivered the Demised Premises to Tenant, vacant and in broom clean condition.

 

(b)                                 Means of access to the Demised Premises
have been provided, and the use, without material interference, of the
facilities necessary to Tenant’s use and occupancy of the Demised Premises, as
contemplated in this lease, including corridors, elevators and stairways and
toilet, air-conditioning, water, plumbing, lighting and electric power
facilities, are available to Tenant substantially in accordance with Landlord’s
obligations hereunder.

 

(c)                                  All facilities and systems serving the
Building and passing through the Demised Premises or any part thereof have been
completed to the extent required to provide services to the Demised Premises,
as contemplated in this lease, and the remaining work to be done in the
Building is of such nature as will not materially interfere with Tenant’s use
and occupancy of the Demised Premises or access thereto.

 

8

 

If the occurrence of any
of the above-mentioned conditions shall be actually delayed due solely to any
act or omission of Tenant or its invitees 
(including but not limited to (x) Tenant’s failure to furnish plans
and specifications or subsequent changes thereto; (y) Tenant’s request for
materials, finishes or installations other than Landlord’s standard, or as
otherwise agreed; and (z) the performance or incompletion of work by a
party employed or retained by Tenant) the Demised Premises shall be deemed
ready for occupancy on the date when they would have been so ready but for such
delay.  Any installation by Tenant prior
to the Commencement Date shall be at the sole risk of Tenant, provided that no
such installation shall materially interfere with or materially delay the work
of Landlord’s contractors or subcontractors in the Building or impose any
additional expense upon Landlord in the construction or operation of the
Building.

 

Notwithstanding anything
hereinabove to the contrary, in the event Landlord shall fail to cause the
Demised Premises to be ready for occupancy on or the date which is two hundred
seventy (270) days following the later of (i) execution
and delivery of this lease and (ii) issuance of a building permit for the
Work to be performed by Landlord in the Demised Premises (the “Outside Date”),
for reasons other than unavoidable delays or as set forth in clauses (x) through
(z) above, then, provided Tenant has fully complied with its obligations
under this lease, Tenant, as its sole remedy, may cancel this lease upon thirty
(30) days notice to Landlord, which notice shall be given within ten (10) days
following the Outside Date (time being
of the essence in the giving of such notice) and unless Landlord
delivers possession of the Demised Premises within thirty (30) days after
Landlord’s receipt of Tenant’s notice, this Lease shall terminate upon the
expiration of said thirty (30) day period (the “Termination Date”), Landlord
shall reimburse to Tenant any prepaid rent and security deposit and, upon such
reimbursement, Landlord shall have no further reimbursement or other obligation
to Tenant under this lease, and the parties shall be released from any future
obligations under the lease arising from and after the Termination Date.

 

Upon
Tenant’s approval of the plans for the Work to be performed by Landlord in the
Demised Premises (as provided in the Work Letter), Landlord shall promptly
apply for and diligently pursue the issuance of a building permit for the Work
to be performed by Landlord in the Demised Premises.

 

4.02.  Consequences of Tenant’s Possession of
Premises or Commencement Date.

 

On the
Commencement Date or upon such earlier date as Tenant shall take exclusive
possession of any part or parts of the Demised Premises and commence operations
therein, Tenant shall be conclusively deemed to have agreed that Landlord, up
to the time of such possession or the Commencement Date, as the case may be,
has performed all of its obligations hereunder with respect to preparation of
such part or parts for Tenant’s possession, except for such failures or
omissions by Landlord in performing such obligations as Tenant may specify by
notice to Landlord not more than 30 days following the taking of such
possession by Tenant or the Commencement Date, as the case may be, which failures or omission Landlord shall use
commercially reasonable efforts to correct
within 30 days of said notice, subject to unavoidable delays. 
Tenant shall not be entitled to any rent abatement on account of any
such incomplete work.

 

4.03. Waiver
of Right to Rescind.

 

The parties hereto agree that this Article covers
Tenant’s rights with respect to the time possession of the Premises is to be
delivered to it and constitutes an express provision to the contrary under, and
Tenant hereby waives any rights to rescind this lease and/or recover damages
which Tenant might otherwise have pursuant to Section 223(a) of the
Real Property Law of the State of New York.

 

4.04.  Early Commencement of Business.

 

If Tenant shall commence
the conduct of its business in one or more portions of the 

 

9

 

Demised Premises prior to
the Commencement Date, the rents allocable to such portion or portions shall be
payable from the date or dates of such commencement or commencements, and the
obligations assumed by Tenant and to be performed during the term of this lease
shall commence as of the date or dates of such commencement or commencements, on a pro-rated basis for the portion of the
Demised Premises so used, provided that no such partial commencement of
business shall be permitted if, in Landlord’s reasonable judgment, such action
would materially interfere with the completion of its construction and
installation obligations.  In the event
of any such occupancy by Tenant prior to the Commencement Date, Tenant shall
not materially interfere with or delay the work of Landlord’s contractors and
subcontractors in the Building and Landlord shall have no liability to Tenant
in the event it, its contractors and subcontractors shall, in the performance
of Landlord’s construction and installation obligations, interfere with, or
interrupt the conduct of, Tenant’s business.

 

ARTICLE 5

 

Security

 

5.01. Security.

 

Intentionally omitted.

 

ARTICLE 6

 

Electricity

 

6.01. General.

 

(a)                                  Electricity shall be supplied to the
Demised Premises and all equipment (wherever located) exclusively servicing the
Demised Premises including, without limitation, all of the heating, ventilating and air
conditioning equipment exclusively serving the Demised Premises, during the
term of this lease in accordance with the provisions of paragraph 6.03 of this
Article.  However, at any time and from
time to time during the term of this lease, provided it is then permissible
under the provisions of laws and requirements of public authorities and this
lease, Landlord shall have the option to have electricity supplied to the
Demised Premises in accordance with paragraph 6.04 of this Article.

 

(b)                                 For the purposes of this Article:

 

(i)                                     The term “Electric Rate” shall mean the
greater of either:

 

(a)                                  the Service Classification pursuant to
which      Landlord purchases electricity from the utility
company servicing the Building, or

 

(b)                                 the Service Classification pursuant to
which Tenant would purchase electricity directly from the utility company
servicing the Building,

 

provided, however, at no
time shall the amount payable by Tenant for electricity be less than Landlord’s
Cost per Kilowatt and Cost per Kilowatt Hour (as such terms are hereinafter
defined), and provided further that in any event, the Electric Rate shall
include all applicable surcharges, and demand, energy, fuel adjustment and time
of day charges (if any), taxes and other sums payable in respect thereof.

 

(ii)                                  The term “Cost per Kilowatt Hour” shall
mean the total cost for electricity 

 

10

 

incurred by
Landlord to service the Building during a particular time period (including all
applicable surcharges, and energy, fuel adjustment and time of day charges (if
any), taxes and other sums payable in respect thereof) divided by the total
kilowatt hours purchased by Landlord during such period.

 

(iii)                               The term “Cost per Kilowatt” shall mean
the total cost for demand incurred by Landlord to service the Building during a
particular time period (including all applicable surcharges, demand, and time
of day charges (if any), taxes and other sums payable in respect to thereof)
divided by the total kilowatts purchased by Landlord during such period.

 

6.02. Intentionally
omitted.

 

6.03 Submetering.

 

(i)                                     Landlord shall supply electricity to
service the Demised Premises and all equipment (wherever located) exclusively
servicing the Demised Premises including, without
limitation, all of
the heating, ventilating and air conditioning equipment exclusively serving the
Demised Premises, on a submetered basis, and Tenant in such event shall pay to
Landlord, as additional rent, the sum of (y) an amount determined by
applying the Electric Rate or, at Landlord’s election, the Cost per Kilowatt
Hour and Cost per Kilowatt, to Tenant’s consumption of and demand for
electricity within the Demised Premises as recorded on the submeter or
submeters servicing the Demised Premises, and (z) Landlord’s
administrative charge of 4% of the amount referred to in clause (y) above,
if and to the extent same is permitted by laws and requirements of public
authorities (such combined sum being hereinafter called “Submeter Electric Rent”).  Except as set forth in the foregoing clause
(z), Landlord will not charge Tenant more than the Electric Rate or, at
Landlord’s election, the Cost per Kilowatt and Cost per Kilowatt Hour for the
electricity provided pursuant to this paragraph. Landlord shall pay all electric charges directly to the appropriate
authority in a timely manner.

 

(ii)                                  Where more than one submeter exclusively
measures the electric service to Tenant, the electric service rendered through
each submeter shall be computed and billed separately in accordance with the
provisions hereinabove set forth.

 

(iii)                               Tenant shall pay to Landlord, on account
of the Submeter Electric Rent payable pursuant to this paragraph 6.03, the
annual sum of $1.50 per square foot of Rentable Area (“Estimated Submeter
Electric Rent”), subject to the adjustments on the first day of each and every
calendar month of the term (except that if the first day of the term is other
than the first day of a calendar month, the first monthly installment, prorated
to the end of said calendar month, shall be payable on the first day of the
first full calendar month).

 

(iv)                              From time to time during the term, the
Estimated Submeter Electric Rent may be adjusted by Landlord on the basis of
either Landlord’s reasonable estimate of Tenant’s electric consumption and
demand (if at any time the submeter(s) servicing the Demised Premises are
inoperative) or Tenant’s actual consumption of and demand for electricity as
recorded on the submeter(s) servicing the premises, and, in either event,
the Electric Rate or Cost per Kilowatt and Cost per Kilowatt Hour then in
effect.

 

(v)                                 Subsequent to the end of each calendar
year during the term of this lease, or more frequently if Landlord shall elect,
Landlord shall submit to Tenant a statement of the Electric Submeter Rent for
such year or shorter period together with the components thereof, as set forth
in clause (i) of this paragraph 6.03 (“Submetered Electric Statement”).  To the extent that the Estimated Submeter
Electric Rent paid by Tenant for the period covered by the Submetered Electric
Statement shall be less than the Submeter Electric Rent as set forth on such
Submeter Electric Statement, Tenant shall pay Landlord the difference within 30
days after receipt of the Submeter Electric Statement.  If the Estimated Submeter Electric Rent paid
by Tenant for the period covered by the Submeter Electric Statement shall be
greater than the Submeter Electric Rent as set forth on the Submeter Electric
Statement, such difference shall be credited against the next required 

 

11

 

payment(s) of fixed
rent or additional rent.  If no Estimated
Submeter Electric Rent payment(s) shall thereafter be due, Landlord shall
pay such difference to Tenant.

 

(vi)                              For any period during
which the submeter(s) servicing the premises are inoperative, the Submeter
Electric Rent shall be determined by Landlord, based upon its reasonable
estimate of Tenant’s actual consumption of and demand for electricity, based
upon prior invoices, and the Electric Rate or Cost per Kilowatt and Cost per
Kilowatt Hour then in effect.

 

6.04.  Direct
Meter.

 

If Landlord
discontinues furnishing electricity to the Demised Premises pursuant to
paragraph 6.03 of this Article; provided, however, Landlord cannot discontinue furnishing electricity if no comparable electric services are
available from a public utility or other utility provider or if the electrical
capacity available to the demised premises would be reduced, Tenant
shall make its own arrangements to obtain electricity for the Demised Premises
and all equipment (wherever located) exclusively servicing the Demised Premises
including, without limitation, heating, ventilating and air conditioning equipment
exclusively serving the Demised Premises, directly from the utility company
furnishing electricity to the Building. Landlord shall give Tenant prior notice
and opportunity to make its own arrangements to obtain electricity for the
Demised Premises before discontinuing furnishing electricity to the Demised
Premises. The cost of such service shall be paid by Tenant directly to such
utility company.  Landlord shall permit
its electric feeders, risers and wiring serving the Demised Premises to be used
by Tenant, to the extent available, safe and capable of being used for such
purpose.  All meters and all additional
panel boards, feeders, risers, wiring and other conductors and equipment which
may be required to enable Tenant to obtain electricity of substantially the
same quality and character, shall be installed by Landlord at Tenant’s cost and
expense if the discontinuance was a result of requirements of law or the
utility provider, and otherwise at Landlord’s expense.

 

6.05. Landlord’s
Statements and Bills.

 

(a)                                  Bills for electricity supplied pursuant
to paragraph 6.03 of this Article shall be rendered to Tenant at such
times as Landlord may elect, but no
less than on a quarterly basis. 
Tenant’s payments for electricity supplied in accordance with paragraph
6.03 of this Article shall be due and payable within 30 days after
delivery of a statement therefor, by Landlord to Tenant, provided that upon request, Landlord shall
provide a detailed explanation of the calculation of the charges.    If any tax is imposed upon Landlord’s
receipts from the sale of electricity to Tenant by laws and requirements of
public authorities, Tenant agrees that, unless prohibited by such laws and
requirements of public authorities, Tenant’s Proportionate Share (as defined in Section 8.01(k)) of
such taxes shall be included in the bills of, and paid by Tenant to Landlord,
as additional rent.

 

(b)                                 Landlord’s failure during the term to
prepare and deliver any statements or bills under this Article, or Landlord’s
failure to make a demand under this Article, shall not in any way be deemed to
be a waiver of, or cause Landlord to forfeit or surrender, its rights to
collect any amount of additional rent which may become due pursuant to this
Article.  Tenant’s liability for any
amounts due under this Article shall survive the expiration or sooner
termination of the term.

 

(c)                                  Tenant’s failure or refusal, for any
reason, to utilize the electrical energy provided by Landlord, shall not
entitle Tenant to any abatement or diminution of fixed rent or additional rent,
or otherwise relieve Tenant from any of its obligations under this lease.

 

6.06. Change
of Service.

 

If either the quantity or character of the electrical
service is changed by the utility company supplying electrical service to the Building
or is no longer available or suitable for Tenant’s requirements, or if there
shall be a change, interruption or termination of electrical service due to a
failure or defect on the part of the utility company, no such change,
unavailability, unsuitability, 

 

12

 

failure or defect
shall constitute an actual or constructive eviction, in whole or in part, or
entitle Tenant to any payment from Landlord for any loss, damage or expense, or
to abatement or diminution of fixed rent or additional rent, or otherwise
relieve Tenant from any of its obligations under this lease, or impose any
obligation upon Landlord or its agents. 
Landlord will use reasonable efforts to insure that there is no
interruption in electrical service to Tenant, but in no event shall Landlord be
responsible for any failures of the utility providing such service or the
negligence or other acts of third parties causing any such interruption.

 

6.07. Additional
Installations.

 

(a)                                  Tenant shall not make any material
electrical installations, alterations, additions or material changes to the
electrical equipment in the Demised Premises without prior written consent of
Landlord in each such instance, which consent shall not be unreasonably withheld,
conditioned or delayed, provided such installations do not exceed Tenant’s
proportionate share of the available electrical capacity within that specific
portion of the Building.  Tenant shall
comply with the rules and regulations applicable to the service,
equipment, wiring and requirements of Landlord and of the utility company
supplying electricity to the Building. 
Tenant agrees that its use of electricity in the Demised Premises will
not exceed the capacity of existing feeders to the Building or the risers or
wiring installations therein and Tenant shall not use any electrical equipment
which, in Landlord’s judgment, will overload such installations or interfere
with the use thereof by other tenants in the Building.  If, in Landlord’s judgment, Tenant’s
electrical requirements necessitate installation of an additional riser, risers
or other proper and necessary equipment or services, including additional
ventilating or air-conditioning, the same shall be provided or installed by
Landlord at Tenant’s expense, which shall be chargeable and collectible as
additional rent and paid within 30 days after the rendition to Tenant of a bill
therefor.

 

(b)                                 If, after Landlord’s initial installation
work, (i) Tenant shall request the installation of additional risers,
feeders or other equipment or service to supply its electrical requirements and
Landlord shall determine that the same are necessary and will not cause damage
or injury to the Building or the Demised Premises or cause or create a
dangerous or hazardous condition or entail excessive or unreasonable
alterations, repairs or expense or interfere with or materially disturb other
tenants or occupants of the Building, or (ii) Landlord shall determine
that the installation of additional risers, feeders or other equipment or
service to supply Tenant’s electrical requirements is necessary, then and in
either of such events Landlord shall cause such installations to be made, at
Tenant’s sole cost and expense and Tenant shall pay Landlord for such
installations, as additional rent, within 30 days after submission of a
statement therefor, which statement
shall be accompanied by a detailed explanation of the charges.

 

ARTICLE 7

 

Brokerage

 

7.01. Brokerage.

 

Tenant and Landlord each represents that, in the
negotiation of this Lease, it dealt with no broker or any other person who
could legally claim to be entitled to receive a brokerage commission or finder’s
or consultant’s fee with respect to this transaction other than Mack-Cali
Realty, L.P.  Tenant and Landlord shall
indemnify and hold the other harmless from and against any and all losses,
costs, damages, expenses, claims and liabilities (including court costs and
attorneys’ fees and disbursements) arising out of any inaccuracy or alleged
inaccuracy of the above representation.

 

13

 

ARTICLE 8

 

Adjustment of Rent for Changes in Real Estate Taxes

 

and Operating Expenses

 

8.01. Definitions
of Taxes and Operating Expenses..

 

As used herein:

 

(a)           “Taxes” shall mean the total amount of real estate
taxes and assessments now or hereafter levied, imposed, confirmed or assessed
against the Real Property, including, city, county, school and transit taxes,
water fees and sewer and refuse disposal charges, or taxes, assessments or
charges levied, imposed, confirmed or assessed against, or a lien on, the Real
Property by any taxing authority whether general or specific, ordinary or
extraordinary, foreseen or unforeseen and whether for public betterments or
improvements or otherwise.  If, due to
any change in the method of taxation, any franchise, capital stock, capital,
income, profit, sales, rental, use and occupancy tax or charge shall be levied,
assessed, confirmed or imposed upon any owner of the Real Property in lieu of,
or in addition to any real estate taxes or assessments upon or with respect to
the Real Property, such tax shall be included in the term Taxes.  Penalties and interest on Taxes (except to
the extent imposed upon timely payments of assessments that may be, and are in
fact, paid in installments) shall be deemed excluded from Taxes except to the
extent provided in the immediately preceding sentence.  The Taxes shall be equitably allocated by
Landlord to the Building Office Space and the Building Flex Space based upon
the respective values of said spaces in a manner consistent with the allocation
of Base Taxes as hereinafter provided, subject to Section 8.01(l) below.

 

In
the event there is an increase in Taxes: (i) due to improvements which do
not benefit Tenant; or (ii) due to the construction of additional floors
and/or buildings, Tenant shall not be required to pay that portion of the
increase in Taxes as a result thereof and any increase in the number of square
feet in the Building shall not be taken into account in recalculating Tenant’s
Tax Proportionate Share, unless adjusted pursuant to 8.01(l) hereof.

 

The
following shall be excluded from Taxes except to the extent provided in
subparagraph (a) above.: (i) corporate franchise; (ii) income; (iii) gains;
(iv) transfer; (v) estate; (vi) inheritance; (vii) succession;
(viii) gift; (ix) excise; (x) profit; (xi) unincorporated
business; (xii) capital stock; (xiii) late charges, interest and/or penalties;
(xiv) special assessments levied against another tenant or occupant in the
Building due to improvements made by such other tenant or occupant, or
otherwise; (xv) assessments in connection with the original site plan; and
(xvi) rent.

 

If
any Taxes (including assessments) are payable in installments, then Tenant
shall only be liable and responsible for those installments which occur during
the term of this Lease.

 

Landlord
agrees to pay all Taxes (including assessments) over the longest period
permitted by applicable law.

 

Landlord represents to Tenant that to Landlord’s
knowledge, as of the date hereof:  (i) Landlord
has no notice of any special assessments against the Building; (ii) the
Building is not located in any business improvement district or special
economic redevelopment/incentive zone; (iii) the Building is fully
assessed as a completed building; and (iv) there are no abatements/exemptions
currently in effect.

 

Any “rollback” or other assessments which are in
effect prior to the commencement date of this Lease shall not be included in
Taxes.

 

14

 

(b)           “Base Tax” shall mean a sum determined by
applying  the tax rates set forth on tax
bills rendered by the taxing authorities for the tax year of each such taxing
authority for the 2008 calendar year to the assessed valuations (after any
reduction in said assessment as a result of any tax abatement or other tax
relief of any nature whatsoever) of the Real Property for the 2008 calendar
year.  “Tax Year” shall mean the fiscal
period for each Tax affecting the property (whether or not a calendar year) as
established by each taxing authority. 
Any and all tax abatements shall be for the benefit of Landlord. The
Base Tax shall be equitably allocated by Landlord to the Building Office Space
and the Building Flex Space based upon the respective values of said spaces,
subject to Section 8.01(l) below.

 

(c)           “Operating Expenses” or “Expenses”
shall mean such costs or expenses (and taxes thereon), as shall be paid or
incurred by or in behalf of Landlord in providing services to tenants, and in
the operation, cleaning, repair (whether structural or non-structural and
whether or not capitalized under generally accepted accounting principles),
management, security and maintenance of any and all parts of the Real Property
and Building (collectively called “Building Operation”) including (i) salaries,
wages and bonuses paid to, and the cost of any hospitalization, medical,
surgical, union and general welfare benefits (including group life insurance),
pension, retirement or life insurance plans and other benefit or similar
expenses of, Landlord’s employees engaged in Building Operation not above the
grade of building/property manager, (ii) social security, unemployment and
other payroll taxes and the cost of providing disability and workers’
compensation coverage with respect to said employees, (iii) cost of
painting, (iv) cost or rental of all cleaning supplies, tools, materials
and equipment, (v) cost of uniforms, work clothes and dry cleaning, (vi) cost
of window cleaning, concierge, guard, watchperson or other security personnel,
service or system, if any, (vii) management fees which are not in excess
of then prevailing rates for management fees payable for comparable properties
in comparable locations or, if no managing agent is employed by Landlord, a sum
in lieu thereof which is not in excess of then prevailing rates for management
fees payable for comparable properties in comparable locations, (viii) charges
of independent contractors performing work included within this definition, (ix) stationery,
(x) legal (except those for the preparation of this and other leases),
accounting and other professional fees and disbursements incurred in connection
with Building Operation, (xi) water, (xii) service contracts for the
performance of Landlord’s obligations, including elevator, electric, heating,
air-conditioning and plumbing systems, (xiii) maintenance and repair of
grounds, including interior and exterior lawns, gardens, shrubbery, trees,
planters, containers, statuary, exhibits, displays, walks and other ways and
areas and common areas, (xiv) maintenance and repairs to the heating,
ventilating and air-conditioning systems, underground pipes, lines, equipment
and systems, roof, and all parts of the Real Property, (xv) removal of snow,
ice, trash, garbage and other refuse, (xvi) telephone charges incurred at the
Building office, if any, (xvii) extermination, (xviii) fire protection, (xix)
repairs or replacements incurred by reason of fire or other casualty or
condemnation to the extent Landlord is not compensated by insurance or the
condemning authority, (xx) cost of repairs and the cost of replacements made in
connection with repairs of cables, fans, pumps, boilers, cooling equipment,
wiring and electrical fixtures and metering, control and distribution
equipment, component parts of the HVAC, electrical, plumbing, elevator and any
life or property protection system (including sprinkler systems), window
washing equipment and snow removal equipment, (xxi) costs for alterations or
improvements resulting in or intended to result in a reduction in fuel
consumption or Operating Expenses or made by reason of laws and requirements of
public authorities, insurance bodies or Landlord’s insurers, provided however,
that to the extent such costs are capitalized under generally accepted
accounting principles, such costs (together with an interest factor equal to 3
percentage points in excess of the prime rate established by JPMorgan Chase
Bank, at the time of expenditure) shall be amortized over the useful life of
the improvement, not to exceed a period of 10 years, and (xxii) for each
Expense Comparison Year subsequent to the first Expense Comparison Year, an
amount equal to the increase, if any, in the interest payable as a result of
any refinancing of the initial first mortgage (encumbering the property of
which the Demised Premises are a part) during (or with respect to) such Expense
Comparison Year over the interest payable under any such initial first mortgage
during (or with respect to) the first Expense Comparison Year; provided
however, that if the principal balance of such refinanced mortgage exceeds the
principal balance thereof immediately prior to such refinancing, then for
purposes of determining the amount of interest payable on such refinanced
mortgage, the principal amount of 

 

15

 

such refinanced mortgage shall be deemed to be equal to the lesser of the
principal balance of such refinanced mortgage or the original principal balance
of the initial first mortgage.  An item
of expense properly included in more than one of the aforesaid categories shall
not be included more than once in the calculation of Operating Expenses.
Notwithstanding anything contained herein to the contrary, any additional costs
incurred by Landlord during the Base Expense Year by reason of Landlord or any
of its vendors entering into new labor contracts or renewals or modifications
of existing labor contracts shall not be included in Base Operating Expenses.
The Operating Expenses shall be equitably allocated by Landlord to the Building
Office Space and the Building Flex Space based upon the respective services
provided by Landlord to said spaces. The allocation shall be done in a manner
consistent with the allocation of Base Operating Expenses, as hereinafter
provided.

 

The following shall be excluded from Operating
Expenses: (1) brokerage commissions and fees, architects’ and attorneys’
fees and disbursements, advertising and promotion costs, and any and all other
costs, fees and expenses incurred in leasing, renovating, decorating,
repairing, altering, painting, redecorating or otherwise improving leased or
vacant space in the Building for the tenants or occupants or prospective
tenants or occupants, or in procuring new tenants or occupants, or in
relocating the tenants or occupants in the Building; (2) amount of lease
concessions and work letters given by Landlord to new tenants or occupants in
the Building; (3) ground rent paid by Landlord to any ground lessor; (4) all
amounts paid to affiliates, subsidiaries or parent companies of Landlord to the
extent that such amounts exceed those that would be payable to an unrelated
party for similar services or materials; (5) costs incurred in correcting
any defects in construction of the Building or in connection with new
construction in the Building (i.e., adding or deleting buildings); (6) repairs
or rebuilding necessitated by fire or other casualty, or eminent domain or
condemnation to the extent Landlord is reimbursed by insurance proceeds or
condemnation awards; (7) to the extent any expense or cost is otherwise
attributable to or which may be included in another property of Landlord; (8) costs
of refinancing any present or future mortgage; (9) principal and interest
payments on any financing, and depreciation and amortization; (10) expenses
incurred by Landlord in connection with furnishing services or providing other
benefits which are not available to Tenant, but which are provided to other
tenants or occupants in the Building; (11) costs incurred in connection with
the transfer of Landlord’s interest; (12) costs and expenses incurred in
connection with the enforcement of leases or other agreements in the Building;
(13) overtime costs incurred as a result of another tenant or occupant in the
Building to the extent that Landlord is entitled to be reimbursed for the same;
(14) costs of performing surveys of other tenants’ or occupants’ electrical
usage, even if Landlord is not reimbursed therefor by such other tenants or
occupants; (15) expenses resulting from the negligence or act or omission of
Landlord or any other tenant or occupant in the Building, or their respective
agents, servants, employees, contractors, licensees or invitees; (16)any bad
debt loss, rent loss, or reserves for bad debts or rent loss; (17) fines,
penalties and interest, and any costs, fees and expenses attributable to a
violation by Landlord or any other tenant or occupant in the Building, or their
respective agents, servants, employees, contractors, licensees or invitees;
(18) any amounts for which Landlord is reimbursed by insurance (or should have
been reimbursed by insurance), or directly from other tenants or occupants, or
from any other source, or refunded or indemnified; (19) capital repairs,
replacements or improvements, except as expressly provided in clause (xxi)
above; (20) costs separately billed to other tenants or occupants in the
Building; (21) Intentionally omitted; (22) real estate taxes; (23) excess
insurance premiums covering the common areas and/or the Building occasioned by
the extra hazardous use or activities of other tenants or occupants in the
Building; (24) Intentionally omitted.; (25) damages recovered by a tenant or
occupant in the Building due to violation by Landlord of any of the terms and
conditions of any lease or other agreement in the Building; (26) costs and
expenses incurred by Landlord to remove, enclose or encapsulate any asbestos or
other hazardous materials or wastes; (27) lease takeover or termination costs
incurred by Landlord in connection with any lease or other agreement in the
Building; (28) the costs of installing an observatory, broadcast facility,
telecommunications facility, theater, auditorium, luncheon club, athletic or
recreational club, child care facility, or cafeteria or dining facility; (29)
any compensation paid to clerks, attendants or other persons working in or
managing commercial concessions operated by Landlord or any affiliate of
Landlord; (30) expenses allocable directly to any retail space (other than the
cafeteria space or the physical fitness center space) or garage space of the
Building; (31) 

 

16

 

costs and expenses incurred by Landlord in
connection with any obligation of Landlord to indemnify another tenant or
occupant of the Building pursuant to a lease or otherwise; (32) costs of tools
and equipment used initially in the construction, operation, repair and
maintenance of the Building; (33) attorneys’ fees and disbursements and other
costs in connection with any judgment, settlement or arbitration resulting from
any tort liability on the part of Landlord and the amount of such settlement or
judgment; (34) Landlord’s general corporate overhead and general administrative
expenses; (35) costs of sculpture, paintings, or other objects purporting to be
art; (36) charitable and political contributions made by Landlord; (37) rent or
imputed rent for any on-site management or leasing office in the Building; (38)
costs of purchasing any air or development rights; (39) sewer or water “tap-in”
or connection fees payable in connection with the initial occupancy of any
tenant or occupant.

 

It is understood that Operating Expenses shall
be reduced by all cash discounts, trade discounts or quantity discounts
received by Landlord in the purchase of any goods, utilities or services in
connection with the operation of the Building. 
Landlord shall make payments for goods, utilities and services in a
timely manner to obtain the maximum possible discount

 

In the calculation of
Operating Expenses, it is understood that no expense shall be charged more than
once.

 

(d)           “Base Operating Expenses” shall
mean Operating Expenses for the 2008 calendar year (“Base Expense Year”).  If the Building is not fully operational or
fully occupied by tenants during such year, then the Operating Expenses for
such year shall be calculated by Landlord by projecting actual expenses to such
increased amount as would have been incurred if the Building had been fully
operational and 95% occupied. The Base Operating Expenses shall be equitably
allocated by Landlord to the Building Office Space and the Building Flex Space
based upon the respective services provided by Landlord to said spaces.

 

(e)           “Fuel, Utilities and Electric Expense” shall
mean such costs or expenses (and taxes and surcharges thereon), as shall be
paid or incurred by or in behalf of Landlord for fuel or energy purchased or
used for the operation of the Building’s heating, ventilating and air cooling
system and equipment, and for light and power (excluding any allocable share
thereof paid by tenants for overtime charges).

 

(f)            “Base Fuel, Utilities and Electric Expenses”
shall mean Fuel, Utilities and Electric Expenses for the Base Expense Year.

 

(g)           “Insurance Expenses” shall mean
such costs or expenses, together with any deductibles, as shall be paid or incurred
by or in behalf of Landlord for the cost of casualty, rent, boiler, machinery,
sprinkler, apparatus, liability, fidelity, plate glass, earthquake and any
other insurance of the Real Property in connection with its operation and
maintenance of the Real Property.

 

(h)           “Base Insurance Expenses” shall mean Insurance
Expenses for the Base Expense Year.

 

(i)            “Expense Payments” shall mean collectively
Operating Expense Payments, Fuel, Utilities and Electric Expense Payments and
Insurance Payments.

 

(j)            “Expense Comparison Year” shall mean
collectively Operating Expense Comparison Year, Fuel, Utilities and Electric
Expense Comparison Year and Insurance Expense Comparison Year.

 

(k)           “Tenant’s Expense Proportionate Share” shall
mean 23.04%, calculated by dividing 34,795 (the Rentable Area of the Demised
Premises) by the  Building Office Space.
The parties agree that Tenant’s Expense Proportionate Share, as set forth
above, reflects and will be continually adjusted to reflect the ratio of the
Rentable Area of the Demised Premises (including an allocable share of all
common facilities) [the numerator] as compared with the Building 

 

17

 

Office Space [the
denominator].  Landlord shall have the
right to make changes or revisions in the Building so as to convert Building
Office Space to Building Flex Space (and visa versa) and to provide additional
leasing area.

 

(l)            “Tenant’s Tax Proportionate Share” shall mean
23.04%, calculated by dividing 34,795 (the Rentable Area of the Demised
Premises) by the Building Office Space. The parties agree that Tenant’s Tax
Proportionate Share, as set forth above, reflects and will be continually
adjusted to reflect the ratio of the Rentable Area of the Demised Premises
(including an allocable share of all common facilities) [the numerator] as
compared with the Building Office Space [the denominator].  Landlord shall have the right to make changes
or revisions in the Building so as to convert Building Office Space to Building
Flex Space (and visa versa) and to provide additional leasing area, provided,
however, if Landlord converts Building Office Space to Building Flex Space (or
visa versa), Landlord shall not reallocate the Taxes attributable to the
Building Office Space and Building Flex Space unless and until the Taxes
assessed against the Building have been adjusted by the taxing authority based
upon such conversion.

 

8.02. Tax Payments.

 

(a)           If Taxes for the Building Office Space for any Tax
Year during the term (“Tax Comparison Year”) shall exceed the Base Tax for the
Building Office Space, Tenant shall pay Landlord, as additional rent for each
such Tax Comparison Year, Tenant’s Tax Proportionate Share of such excess (“Tax
Payment”).  At Tenant’s request, Landlord
shall furnish Tenant with a true copy of all relevant tax bills.

 

(b)           Subsequent to Landlord’s receipt of
the tax bills for each Tax Comparison Year, Landlord shall submit to Tenant a
statement showing (i) the Tax Payments due for such Tax Comparison Year,
and (ii) the basis of calculations (“Landlord’s Tax Statement”).  Tenant shall (y) pay Landlord the unpaid
portion (if any) of the Tax Payment within 30 days after receipt of Landlord’s
Tax Statement, and (z) on account of the immediately following Tax
Comparison Year, pay Landlord commencing as of the first day of the month
during which Landlord’s Tax Statement is rendered, and on the first day of each
month thereafter until a new Landlord’s Tax Statement is rendered, 1/12th of
the total payment for the current Tax Comparison Year.  The monthly payments based on the total
payment for the current Tax Comparison Year shall be adjusted from time to time
to reflect Landlord’s reasonable estimate of increases in Taxes for the
immediately following Tax Comparison Year.

 

8.03. Reduction of Comparison Year Taxes.

 

If Taxes for any Tax
Comparison Year, or an installment thereof, shall be reduced before such Taxes
or such installment shall be paid, the amount of Landlord’s reasonable costs and expenses of
obtaining such reduction (including appraisers’ and consultants’ fees) shall be
added to and deemed part of Taxes for such Tax Comparison Year. In the event
Landlord obtains a refund of Taxes for any Tax Comparison Year for which a Tax
Payment has been made by Tenant, Landlord shall credit against Tenant’s next
succeeding Tax Payment, Tenant’s Tax Proportionate Share of the refund (but not
more than the Tax Payment that was the subject of the refund) after deducting
from such refund the costs and expenses incurred by Landlord in obtaining the
refund, including appraisers’ and consultants’ fees.  In the event no Tax Payment shall thereafter
be due, Landlord shall pay such refund to Tenant.

 

8.04. Reduction of Base Tax.

 

If Landlord obtains a
reduction in the Base Tax after Tenant shall have made Tax Payments for one or
more Tax Comparison Years, the Base Tax shall be reduced (such reduction to
include the expenses incurred by Landlord in obtaining such reduction,
including appraisers’ 

 

18

 

and consultants’ fees),
prior Tax Payments shall be recalculated and Tenant shall pay Landlord, for
each of such Tax Comparison Years, Tenant’s Tax Proportionate Share of the
increased amount of Tax Payment for each such Comparison Year.  Tenant’s payment under this Section 4.04
shall be made within 30 days after Landlord’s billing therefor.

 

8.05. Tax
Payment Pending Protest.

 

While proceedings for the reduction in assessed
valuations are pending, the computation and payment of Tax Payments shall be
based upon the original assessments for the years in question.

 

8.06. Adjustment
of Expense Payments.

 

(a)           If Operating Expenses for the Building
Office Space for any calendar year during the term and following the Base
Expense Year (each such year being called an “Expense Comparison Year”) shall
exceed Base Operating Expenses for the Building Office Space, Tenant shall pay
Landlord for each such Expense Comparison Year, Tenant’s Expense Proportionate
Share of such excess (“Expense Payment”). (If the Building Office Space is not
fully operational or fully occupied by tenants throughout any Expense
Comparison Year, then the Operating Expenses for each such year shall be
calculated by projecting actual expenses to such increased amount as would have
been incurred if the Building Office Space had been fully operational and 95%
occupied).

 

(b)           If Fuel, Utilities and Electric Expenses
for the Building Office Space for any calendar year during the term (each such
year being called a “Fuel, Utilities and Electric Expense Comparison Year”)
shall exceed the Fuel, Utilities and Electric Expenses for the Building Office
Space (adjusted proportionately for periods less than a year), Tenant shall pay
Owner, for each such Fuel, Utilities and Electric Expense Comparison Year,
Tenant’s Expense Proportionate Share of such excess (“Fuel, Utilities and
Electric Expense Payment”).  If the
Building Office Space is not fully operational or occupied during any Fuel,
Utilities and Electric Expense Comparison Year, then the Fuel, Utilities and Electric
Expenses for each such year shall be calculated by Owner by projecting actual
expenses to such amount as would have been incurred if the Building Office
Space had been fully operational and 95% occupied.

 

(c)           If Insurance Expenses for any calendar year
during the term (each such year being called an “Insurance Expense Comparison
Year”) shall exceed the Base Insurance Expenses (adjusted proportionately for
periods less than a year), Tenant shall pay Owner, for each such Insurance
Expense Comparison Year, Tenant’s Expense Proportionate Share of such excess (“Insurance
Expense Payment”).

 

(d)           As soon as practicable subsequent to the
end of each Expense Comparison Year, Landlord shall submit to Tenant a
statement showing (i) the Expense Payments due Landlord for such Expense
Comparison Year, and (ii) the basis for such calculation (“ Landlord’s
Statement”). Tenant shall (x) make payment of any unpaid portion of the
Expense Payment within 30 days after receipt of Landlord’s Statement, and (y) pay
to Landlord on account of the then current Expense Comparison Year, within 30
days after receipt of Landlord’s Statement an amount equal to the product
obtained by multiplying the total payment required for the preceding Expense
Comparison Year by a fraction, the denominator of which shall be 12 and the
numerator of which shall be the number of months of the current Expense
Comparison Year which shall have elapsed prior to the first day of the month
immediately following the rendition of Landlord’s Statement, and (z) pay
Landlord on account of the then current Expense Comparison Year, commencing as
of the first day of the month immediately following the rendition of Landlord’s
Statement and on the first day of each month thereafter until a new Landlord’s
Statement is rendered, 1/12th of the total payment for the preceding Expense
Comparison Year.  The monthly payments
based on the total payment for the preceding Expense Comparison Year shall be
adjusted from time to time to reflect, Landlord’s reasonable estimate of increases
in rates and expenses for the current Expense 

 

19

 

Comparison Year, involved
in computing Operating Expenses.  The
payments required to be made under clauses (y) and (z) above shall be
subject to adjustment as and when Landlord’s Statement for such current Expense
Comparison Year is rendered by Landlord. Tenant shall make payments on account
of Expense Payments for the first Expense Comparison Year on the basis of
estimates prepared by Landlord, payments to be made monthly on the first day of
each month during such first Expense Comparison Year. The payments based on
such estimates shall be adjusted following the expiration of the first Expense
Comparison Year, upon rendition of Landlord’s Statement for that year.

 

8.07. No
Credit.

 

If in a Tax Comparison Year the Taxes are less than
the Base Tax, and/or if in an Expense Comparison Year, the Operating Expenses
are less than the Base Operating Expenses, and/or the Fuel, Utilities and
Electric Expenses are less than the Base Fuel, Utilities and Electric Expenses
and/or the Insurance Expenses are less than the Base Insurance Expenses, the
Tenant shall not be entitled to receive a credit, by way of a reduction in
fixed rent, a refund of all or a portion of prior (or a credit against future)
Tax Payments or Expense Payments, or otherwise.

 

8.08. Assessment
With Other Properties.

 

If, at any time, the Real Property is assessed for tax
purposes with other property owned by Landlord, the tax ascribable to the Real
Property shall be the allocable portion of the Taxes on the entire properties,
based upon an informal apportionment by such assessors of the total assessment
to such Real Property or if such apportionment is not available, as shall be
determined by Landlord.

 

8.09. Billing.

 

Landlord’s failure during the term
to prepare and/or deliver any statement or bill required to be delivered to
Tenant, or Landlord’s failure to make demand for payment of fixed rent or
additional rent shall not be deemed a waiver of, or cause Landlord to forfeit
or surrender its rights to collect, any rent due. Tenant’s liability for all
such payments shall continue unabated during the term and shall survive the
expiration or sooner termination of the term, notwithstanding Landlord’s failure
to demand payment for same, failure to bill same, or improper billing thereof.

 

8.10. Partial
Comparison Year.

 

If the Expiration Date or earlier date upon which the
term of this lease may expire or terminate shall be on a date other than the
last day of a Tax or Expense Comparison Year, Tenant’s Tax Payment and Expense
Payment for such partial Tax or Expense Comparison Year (as the case may be)
shall be appropriately prorated.

 

8.11. Tax
Protests.

 

Tenant shall have no right to institute or participate
in any tax certiorari proceedings or other proceedings of a similar nature, it
being understood that the commencement, maintenance, settlement, or conduct
thereof shall be in the sole discretion of Landlord.

 

8.12 Books
and Records.

 

For the protection of
Tenant, Landlord shall maintain books of account which shall be 

 

20

 

open to Tenant and its
representatives at all reasonable times so that Tenant can determine that such
Operating  Expenses and Real Estate Taxes
have, in fact, been paid or incurred. Tenant’s representatives shall mean only (i) Tenant’s
employees or (ii) a Certified Public Accounting firm, and neither Tenant’s
employees nor any Certified Public Accounting firm shall be permitted to (i) perform
such inspection and/or audit on a contingency basis, or (ii) perform such
an inspection and/or audit for any other tenant in the Building.  At Landlord’s request, Tenant shall execute a
confidentiality agreement reasonably acceptable to Landlord prior to any
examination of Landlord’s books and records. 
In the event Tenant disputes any one or more of said charges, Tenant
shall attempt to resolve such dispute with Landlord, provided that if such
dispute shall not be satisfactorily settled between Landlord and Tenant, the
dispute shall be referred by either party to an independent certified public
accountant to be mutually agreed upon, and if such an accountant cannot be
agreed upon, The American Arbitration Association may be asked by either party
to select an arbitrator, whose decision on the dispute will be final and
binding upon both parties, who shall jointly share any cost of such
arbitration. Pending resolution of said dispute the Tenant shall pay to
Landlord the sum so billed by Landlord subject to its ultimate resolution as
aforesaid.

 

8.13 Right of Review.

 

Once Landlord
shall have finally determined Operating Expenses and  Real Estate Taxes  at the expiration of a lease year, then as to
the item so established, Tenant shall only be entitled to dispute said charge
as finally established for a period of three (3) months after such charge
is finally established, and Tenant specifically waives any right to dispute any
such charge at the expiration of said three (3) month period.

 

ARTICLE 9

 

Parking

 

9.01. Parking.

 

(a)           Throughout the term, Landlord shall make available to
Tenant the following number of parking spaces:

 

fifteen (15)
marked spaces, on an exclusive basis, on the Ramland Road side of the Building

 

one hundred thirty
two (132) spaces, on a non-exclusive basis

 

If Tenant or its
invitees use more than the specified number of spaces, after 5 days notice from
Landlord, Tenant shall, at the option of Landlord, either (i) pay Landlord’s
then current charge per month for each additional space used on a month to
month basis, which may be revoked by Landlord at any time upon 30 days notice
(as of the date of this lease, Landlord’s current monthly charge is $40.00 per
space), or (ii) cease and desist immediately from using said additional
spaces.

 

(b)           Landlord shall light (between 8:00 a.m. and 8:00 p.m.
on business days), clean, remove snow and ice from and maintain, the parking
area and otherwise maintain such areas
in a neat and clean fashion, including salting and sanding as necessary to
maintain same in a safe condition. 
Tenant shall be responsible for repairing damage caused by Tenant or its
invitees.    In no event shall Landlord
be obligated to remove snow from areas obstructed by parked vehicles at the
time Landlord’s equipment is servicing such areas.

 

(c)           Tenant shall cause its invitees to park in areas
designated by Landlord, and  use commercially reasonable efforts to
discourage parking in undesignated areas.  Tenant shall, upon 

 

21

 

request, furnish
to Landlord the license numbers of the automobiles operated by Tenant, its
officers and employees.  Landlord may use
any lawful means to enforce the parking regulations established pursuant to
this lease, including the towing away of improperly parked or unauthorized cars
and the pasting of warning notices on car windows and windshields.

 

(d)           Landlord may temporarily
close any common area (i.e. areas not leased to Tenant) to make repairs or
changes therein, to prevent the acquisition of public rights in such area, or
to discourage unauthorized parking. 
Landlord may do such other acts in and to the common areas as, in its
judgment, may be desirable to improve the convenience thereof. Landlord shall
use its commercially reasonable efforts to minimize interference with Tenant’s
access to the Demised Premises, pursuant to the terms, covenants, conditions,
provisions and agreements of this Lease.

 

ARTICLE 10

 

Use

 

10.01.
Permitted Uses.

 

Tenant (and its affiliates) may occupy and use the
Demised Premises only for executive, administrative, accounting, and general
office purposes, laboratory, warehouse and distribution, manufacturing, and for
development and assembly of medical and/or industrial scopes and medical
devices and related equipment and accessories, service and repair and research
and development, and for no other purpose. Such use shall be permitted
notwithstanding that the Demised Premises are located within the Building
Office Space.

 

10.02.
Prohibited Uses.

 

(a)           Tenant agrees that
neither Tenant nor any subtenant, assignee or occupant of the Demised Premises
shall at any time during the term of this lease occupy or use the Demised
Premises or permit the same to be used or occupied in any manner except as
provided in Section 10.01.  The
following non-exclusive list of uses shall not be deemed to be “executive,
administrative, accounting and general office purposes”, and Tenant shall not
use, or permit the use of, the Demised Premises or any part thereof, for:

 

(i)            The conduct of a public auction of any kind, or of any
gaming or gambling activities, or for any political or club activities, whether
public or private.

 

(ii)           The conduct of a school of any kind or as an
employment agency.

 

(iii)          The sale at retail or wholesale of any products or
materials kept in the Demised Premises, by vending machine or otherwise, except food vending machines for the sole
use of Tenant’s invitees.

 

(iv)          Intentionally omitted.

 

(v)           The rendition to the public of medical, dental or
other diagnostic or therapeutic services.

 

(vi)          A restaurant, bar, or the sale of confectionery,
tobacco, newspapers, magazines, soda, beverages, sandwiches, ice cream, baked
goods or similar items, or the preparation, dispensing or consumption of food
and beverages.

 

(vii)         The conduct of any business, occupation or activity
which, (y) unreasonably 

 

22

 

interferes with or disturbs the occupancy of other
tenants or occupants of the Building, or (z) creates an unusual risk to
the security of the Building or of any of its tenants or occupants.

 

(viii)        The conduct of any business not engaged in by Tenant
at the date of this Lease, if the use of the Demised Premises for such business
shall conflict with any negative covenants as to use contained in any other
lease of space in the Building entered into subsequent to the date of this
lease but prior to the use of the Demised Premises for such other business,
provided that Landlord shall have notified Tenant of the existence of such
negative covenants.

 

(b)           Tenant shall not suffer or permit the Demised Premises
or any part thereof to be used in any manner, or anything to be done therein,
or suffer or permit anything to be brought into or kept in the Demised
Premises, the Building or the Park, if applicable, which would in any way (i) violate
any laws or requirements of public authorities (subject to the right to contest
such laws or requirements as provided in, and subject to the provisions of, Section 17.02),
(ii) cause injury to the Building or any part thereof, (iii) constitute
a public or private nuisance, (iv) impair the appearance of the exterior
of the Building, (v) impair the use for normal purposes of any other area
of the Building by, or occasion physical discomfort to, or interfere with
services required to be furnished by Landlord to Tenant or to, any of the other
tenants and occupants of the Building or the Park, if applicable, or (vi) violate
any of Tenant’s other obligations under this lease.

 

(c)           Tenant shall not cause (or allow any of its contractors,
agents or other persons or entities over whom or which it exercises a degree of
control to cause) to occur within the Demised Premises, the Building or the
Park, if applicable, any discharge, spillage, uncontrolled loss, seepage or
filtration of hazardous waste or oil or petroleum liquids or solids, asbestos,
pcb, radioactive substances, methane, volatile hydrocarbons, industrial
solvents, or any other materials or substances which have in the past caused or
constituted, or are in the future found to cause or constitute, a health,
safety or environmental hazard.

 

10.03.
Physical Protection of Premises.

 

(a)           Tenant shall not place (nor require the
placement of) a load upon any floor of the Demised Premises exceeding 150 lbs.
per square foot (live and dead) in areas other than where the floor duct system
is located, nor shall Tenant place (or require the placement of) a load upon
any ceiling in the Demised Premises exceeding 5 lbs. per square foot.  All data processing and other business
machines and equipment and all other mechanical equipment installed and used by
Tenant in the Demised Premises shall be so equipped, installed and maintained
by Tenant, at its expense, as to prevent noise, vibration or electrical or
other material interference from being transmitted from the Demised Premises to
any other area of the Building.  Tenant
shall not move any safe, heavy machinery or heavy equipment into or out of the
Building without employing persons properly licensed, if required by laws and
requirements of public authorities.

 

(b)           Tenant shall not discharge or permit to
be discharged any materials into waste lines, vents, or flues of the Building
which might cause damage thereto.  The
water and wash closets and other plumbing fixtures in or serving the Demised
Premises shall not be used for any purposes other than those for which they
shall have been designed or constructed, and no sweepings, rubbish or rags
shall be deposited therein.

 

23

 

ARTICLE 11

 

Building Name-Signs-Directory

 

11.01. Building Name.

 

Landlord shall
have the right, from time to time, to designate a name for the Building and to
change the name and/or address of the Building.

 

11.02. Tenant Signs.

 

Landlord agrees that Tenant may, at its own expense,
install and maintain any signs which Tenant may deem appropriate inside the
Demised Premises without Landlord’s consent, except that any such signs which
are visible from the outside of the Building or Demised Premises and which are
intended by Tenant to be visible, shall be subject to Landlord’s approval.  Tenant agrees that it will maintain all such
signs at its sole cost and expense and will comply with all laws and
requirements of public authorities with respect thereto.  Upon the termination or expiration of the
term of this lease, Tenant shall remove all such signs at its own expense and
repair any damage caused by such removal, also at its own expense.

 

11.03. Directory.

 

Landlord shall, upon Tenant’s request and upon payment
of Landlord’s standard charge therefor, list on the Building’s directory (“Directory”)
the names of the Tenant, any other party occupying any part of the Demised
Premises in accordance with the terms hereof, and their officers or employees,
provided the number of names so listed does not exceed Tenant’s Proportionate
Share of the Directory’s capacity.  The
listing of any party’s name other than that of Tenant shall neither grant such
party any right or interest in this lease and/or the Demised Premises nor
constitute Landlord’s consent to any assignment or sublease to, or occupancy
by, such party.  Such listing may be
terminated by Landlord at any time, without prior notice. In addition, Landlord
shall, upon Tenant’s request, list the name of Tenant on one (1) line of
the Building’s monument sign on Ramland Road and install a prominent sign above 
the door of the Ramland Road entrance to the Building in accordance with
the design specifications attached hereto as Exhibit E.

 

Tenant may, at its
sole cost and expense, install a sign on the Building bearing Tenant’s name by
the front entrance door to the Demised Premises, in accordance with and as
shown on the sign specification attached hereto as Exhibit E. Tenant
agrees that it will maintain such sign at its sole cost and expense and will
comply with all laws and requirements of public authorities with respect
thereto.  Upon the termination or
expiration of the term of this lease, Tenant shall remove such sign at its own
expense and repair any damage caused by such removal, also at its own expense.

 

ARTICLE 12

 

Charges for Services During Non-Regular Business Hours

 

12.01. Services During Non-Regular Business Hours.

 

In the event
Tenant conducts business in any portion of the Demised Premises during other
than regular business hours, Landlord shall, upon reasonable advance notice,
provide those building services as shall enable Tenant to utilize the Premises
during such period, provided that Tenant shall pay Landlord’s customary charges
therefor, and subject to Landlord’s regulations in effect from time to time.

 

24

 

12.02. Cooling Tower.

 

In the event
Tenant conducts business in any portion of the Demised Premises during hours
other than regular business hours, Landlord shall, upon reasonable advance
notice, operate the Building’s cooling tower and such other equipment and
machinery as shall enable Tenant to cool the Premises.  Tenant shall reimburse Landlord for Landlord’s
cost of such service upon rendition of a bill therefor, at Landlord’s customary
charge therefor. Notwithstanding anything herein to the contrary,  there shall be no after-hours charge for
Tenant using and operating the HVAC equipment which exclusively services the
laboratory portion of the Demised Premises.

 

ARTICLE 13

 

Assignment-Mortgaging-Subletting

 

13.01. Prohibition Against Assignment, Etc.

 

(a)           Except as otherwise provided
herein, Tenant covenants and agrees that neither this lease, nor the term and
estate hereby granted, nor any part hereof or thereof shall be assigned,
mortgaged, pledged, or otherwise transferred (whether voluntarily or
involuntarily, by operation of law or otherwise) to, and that neither the
Demised Premises, nor any part thereof, shall be sublet to, or offered or advertised
for subletting to, or be used or occupied by or permitted to be used or
occupied by, anyone other than Tenant.

 

(b)           Unless Tenant is an entity, the securities of which
are registered under appropriate statutory authority and listed and traded on a
national securities exchange, the transfer of any portion of the capital stock
of Tenant or the issuance of additional capital stock of Tenant the result of
which, in either event, shall be the transfer of control of Tenant to any
person or entity not controlling Tenant on the date of this lease shall be
deemed an assignment of this lease within the meaning of this Section, and
shall not be valid and binding upon Landlord.

 

(c)           If Tenant is controlled (directly or indirectly) by a
corporation (“Parent”), the securities of which are not registered under
appropriate statutory authority and not listed and traded on a national
securities exchange, the transfer of any portion of the capital stock of such
Parent or the issuance of additional capital stock of such Parent the result of
which, in either event, shall be the transfer of control of such Parent to any
person or entity not controlling such Parent on the date of this lease shall be
deemed an assignment of this lease within the meaning of this Section, and shall
not be valid and binding upon Landlord.

 

(d)           Any transfer by operation of law or otherwise, of
Tenant’s interest in this lease, shall be deemed an assignment of this lease
within the meaning of this Section and shall not be valid and binding upon
Landlord.

 

(e)           If this lease shall be assigned,
whether or not in violation of the provisions of this lease, Landlord may (but
need not) collect rent from the assignee. 
If the Demised Premises or any part thereof be sublet or occupied by
anyone other than Tenant, Landlord may (but need not), after default by Tenant
and expiration of Tenant’s time to cure such default, collect rent from the
subtenant or occupant.  In either event,
Landlord may apply the net amount collected to the rents herein reserved, but
no such assignment, subletting, occupancy or collection shall be deemed a
waiver of this covenant, or the acceptance of the assignee, subtenant or
occupant as Tenant hereunder, or a release of Tenant from the further
performance by Tenant of Tenant’s obligations under this Lease.

 

(f)            Anything in this Article or this lease to the
contrary notwithstanding, Landlord consents to the assignment of this lease to
any entity controlling, controlled by or under common 

 

25

 

control with
Tenant, or to any entity into which Tenant may be merged or consolidated, or
any person or entity which is a successor to the business of Tenant, by
purchase thereof or by arrangement effected pursuant to any law or regulatory
agency action having or asserting such authority (provided such merger,
consolidation or purchase is for a valid business purpose and not principally
for the purpose of transferring the leasehold estate created hereby), and
provided that (i) the successor to Tenant resulting from the merger,
consolidation or purchase is a bona fide entity, (ii) the successor to
Tenant has a net worth, computed in accordance with generally accepted
accounting principles, at least equal to the greater of the net worth of Tenant
(1) immediately prior to such merger, consolidation or purchase or (2) on
the date of this lease, and (iii) proof satisfactory to Landlord of such
net worth shall have been delivered to Landlord at least 30 days prior to the
effective date of the transaction.  No such
assignment of this lease shall be valid or binding upon Landlord unless the
Tenant shall have complied with the provisions of this Article and the
assignee shall execute, acknowledge and deliver to Landlord an agreement, in
recordable form, whereby the assignee agrees unconditionally to be bound by and
perform all the obligations of Tenant hereunder then accrued and thereafter
accruing and further expressly agrees that notwithstanding such assignment the
provisions of this Article shall continue to be binding upon such assignee
with respect to all future assignments. 
The failure or refusal of the assignee to execute, acknowledge or
deliver such an agreement shall not release the assignee from its liability for
the performance of the obligations of Tenant hereunder assumed by acceptance of
the assignment of this lease.

 

13.02. Permitted Subletting.

 

(a)           Notwithstanding the foregoing provisions of this
Article, Tenant may sublet all of the Demised Premises, but not less than all,
to one subtenant, for occupancy and use as permitted by Article 10,
provided however, that Tenant shall first obtain the consent of Landlord, which
consent shall not be unreasonably withheld, conditioned or delayed beyond
fifteen (15) days following Landlord’s receipt of Tenant’s request
therefor.  In addition, Tenant may sublet
a portion of the demised premises to not more than three subtenants, for
occupancy and use as permitted by Article 10; provided however, that
Tenant shall first obtain the consent of Owner, which consent shall not be
unreasonably withheld, conditioned or delayed beyond fifteen (15) days
following Landlord’s receipt of Tenant’s request therefor. The consent by
Landlord to such subletting shall not in any way be considered to relieve
Tenant from obtaining the express consent of Landlord to any further
subletting.

 

(b)           If Tenant shall have a bona fide intention to sublet
all or a portion of the Demised Premises, as stated above, it shall first
notify Landlord of such fact and of the terms of Tenant’s proposed subrental
and other terms of subletting, and:

 

(i)            If Tenant intends to sublet the entire
Demised Premises, then, and in such event, Landlord shall have the option,
exercisable by notice within 30 days after the date of Tenant’s notice, to
elect to cancel this lease, effective as of 6 months from the last day of the
month in which Landlord shall have given such notice.  Upon any such cancellation of this lease by
Landlord, Tenant shall have no further obligations to Landlord with respect to
this lease except for obligations accrued up to the date of cancellation.

 

If Tenant intends to sublet less than all of the Demised Premises as
permitted under Section (a) above, Landlord shall have the option,
exercisable by notice within 30 days after the date of Tenant’s notice, to
elect to delete from the Demised Premises the space which Tenant proposes to
sublet.  If space is deleted from the
Demised Premises, then effective as of the date of such deletion of space, the
fixed rent hereunder shall abate proportionately according to the ratio that
the number of square feet of Rentable Area in the deleted space bears to the
number of square feet of Rentable Area in the entire Demised Premises and all
other provisions of this lease shall be appropriately amended (and the parties
shall execute and deliver an amendment to this lease) so as to reflect such
diminished square footage of Rentable Area of the demised premises.  Upon any such deletion of space by Landlord,
Tenant shall have no further obligation to Landlord with respect to the deleted
space, except for obligations accrued up to the date of space deletion.  Any costs incurred by Landlord in 

 

26

 

separating the
deleted space from the remainder of the Demised Premises, including but not
limited to, the erection of demising walls, the installation and/or separation
of meters, restrooms, doorways, etc. shall be borne by Tenant.

 

Notwithstanding
anything herein to the contrary, Landlord shall not have the right to recapture
the space which Tenant proposes to sublet in the case of a sublease for fifty
percent (50%) of the demised premises or less, for a sublease term which
expires prior to the last two years of the term of this lease.

 

(ii)           If Landlord shall not have elected to cancel
as described above, and if within a period of 6 months from the date of Tenant’s
notice, Tenant has not requested Landlord’s consent to a specific subletting,
then the provisions of this Article requiring Tenant to give notice to
Landlord of intended subletting, and any of Landlord’s rights to elect, shall
again prevail.

 

(iii)          If Landlord shall not exercise the option
to cancel this lease, Tenant may actively seek to obtain an appropriate
subtenant, and Tenant shall submit (x) the name and address of such
proposed subtenant, (y) reasonably satisfactory information as to the
nature and character of the business of the proposed subtenant, and as to the
proposed nature of its proposed use of the space, and (z) banking,
financial and other information relating to the proposed subtenant reasonably
sufficient to enable Landlord to determine the financial responsibility and
character of the proposed subtenant.

 

(iv)          In determining whether or not to consent
to a proposed subletting, Landlord may take into consideration all relevant
factors surrounding the proposed sublease, including the following:

 

a.                                       The business reputation of the proposed
subtenant.

 

b.                                      The nature of the business and the
proposed use of the Demised Premises by the proposed subtenant.

 

c.                                       The financial condition of the proposed
subtenant, if such financial condition indicates that the proposed subtenant is
not financially viable.

 

d.                                      Restrictions contained in leases of other
tenants of the Building (but said 
restrictions shall not prohibit the use of the Demised Premises
specified in Article 9).

 

13.03.  Profits.

 

If such proposed subletting is effected by Tenant,
Tenant shall pay to Landlord a sum equal to 50% of (i) any rent or other
considerations paid to Tenant by any subtenant less expenses of such subleasing
(including but not limited to brokerage commissions, concessions and costs of
improvements) in excess of the rent allocable to the subleased space which is
then payable by Tenant to Landlord pursuant to the terms hereof, and (ii) any
other profit or gain realized by Tenant from any such subletting.  All sums payable hereunder by Tenant shall be
payable to Landlord upon receipt thereof by Tenant.   Notwithstanding the foregoing, at the option
of the holder of any mortgage encumbering the Building, this Section shall
be inapplicable during any period that such holder is Landlord hereunder.

 

13.04.  Advertising;
Listing.

 

Tenant shall not publicly advertise its space for
subletting at a rental rate lower than the greater of the then comparable
rental rate for such space in the Town of Orangeburg or the rental 

 

27

 

rate under this
lease for such space (but may list same with a reputable commercial real estate
broker).  When Landlord or an affiliate
of Landlord has other, equivalent space available for leasing by Landlord or an
affiliate of Landlord, Tenant shall not sublet all or any portion of the
Demised Premises to an occupant of any space in the Building or to any party
which has negotiated with Landlord or an affiliate of Landlord for comparable
space during the 6 months immediately preceding Tenant’s request for Landlord’s
consent.

 

13.05. Prior to Commencement Date.

 

Tenant may not exercise its rights under this Article prior
to the Commencement Date.

 

13.06. Delivery of Sublease Requirement.

 

No sublease of the Demised Premises shall be effective
unless and until Tenant delivers to Landlord duplicate originals of the
instrument of sublease (containing the provisions required by Section 13.07)
and any accompanying documents.  Any such
sublease shall be subject and subordinate to this lease.

 

13.07. Sublease Requirement.

 

All subleases shall (i) be expressly subject to
all of Tenant’s obligations hereunder, (ii) provide that the sublease shall
not be assigned, encumbered or otherwise transferred, that the premises
thereunder shall not be further sublet by the sublessee, in whole or in part,
and that the sublease shall neither suffer nor permit any portion of the sublet
premises to be used or occupied by others without the prior consent of Landlord
in each instance and (iii) contain substantially the following provision:

 

“In the event a default
under any superior lease of all or any portion of the premises demised hereby
results in the termination of such superior lease, this lease shall, at the
option of the lessor under any such superior lease, remain in full force and
effect and the tenant hereunder shall attorn to and recognize such lessor as
landlord hereunder and shall promptly upon such lessor’s request, execute and
deliver all instruments necessary or appropriate to confirm such attornment and
recognition.  The tenant hereunder hereby
waives all rights under any present or future laws or otherwise to elect, by
reason of the termination of such superior lease, to terminate this sublease or
surrender possession of the premises demised hereby.”

 

13.08. Liability for Subtenant.

 

Tenant shall remain fully responsible and liable for
all acts and omissions of any subtenant or anyone claiming under or through any
subtenant which shall be in violation of any of the obligations of Tenant
hereunder and any such violation shall be deemed a violation by Tenant.  Tenant shall pay Landlord on demand any
reasonable expenses incurred by Landlord in acting upon any request for consent
to subletting pursuant to this Article, not to exceed $2,500.00.

 

13.09. Indemnification Against Brokers.

 

Whether or not Landlord shall give its consent to any
proposed sublease, Tenant shall indemnify, defend and save harmless Landlord
against and from any and all liabilities, obligations, damages, penalties,
claims, costs, charges and expenses (including reasonable attorney’s fees)
resulting from any claims that may be made against Landlord by the proposed
sublessee, or by any brokers or other persons claiming a commission or similar
compensation in connection with the 

 

28

 

proposed or final
sublease.

 

ARTICLE 14

 

Quiet Enjoyment

 

14.01. Quiet Enjoyment.

 

Landlord covenants and agrees that so long as Tenant
performs all of Tenant’s obligations hereunder, Tenant shall  peaceably and quietly have, hold and enjoy
the Demised Premises without hindrance or molestation by Landlord, subject,
nevertheless, to the terms, covenants and conditions of this lease.  The covenant herein set forth shall bind and
be enforceable against Landlord or any successor to Landlord’s interest,
subject to the terms hereof, only so long as Landlord or any successor to
Landlord’s interest is in possession and is collecting rent from Tenant.

 

ARTICLE 15

 

Subordination

 

15.01. Subordination.

 

(a)           This lease is subject and subordinate to
all ground or underlying leases and to all mortgages which may now or hereafter
affect such leases or the Real Property, and to all renewals, modifications,
consolidations, replacements and extensions of any such underlying
instruments.  This clause shall be
self-operative and no further instrument of subordination shall be needed by
any ground or underlying lessee or mortgagee affecting any lease or the Real
Property.  In confirmation of such
subordination, Tenant shall execute promptly any certificate that Landlord may
reasonably request, in a form and
substance reasonably satisfactory to Tenant.

 

(b)           Notwithstanding the provisions of Section 15.01(a),
subject to the provisions herein set forth, and at the election of the holder
of any current or future mortgage encumbering all or a portion of the premises
of which the Demised Premises are a part, such mortgage shall be subordinate to
this lease with the same force and effect as if this lease had been executed,
delivered and recorded prior to the execution, delivery and recording of the
said mortgage, except however that the said subordination of the mortgage to
the lease shall not affect nor be applicable to and does expressly exclude:

 

(i)                                     The prior right, claim or lien of the
said mortgage in, to and upon any award or other compensation heretofore or
hereafter to be made for any taking by eminent domain of any part of the mortgaged
premises, and to the right of disposition thereof in accordance with the
provisions of the said mortgage;

 

(ii)                                  The prior right, claim and lien of the
said mortgage in, to and upon any proceeds payable under all policies of fire
and rent insurance upon the said mortgaged premises and as to the right of
disposition thereof in accordance with the terms of the said mortgage; and

 

(iii)                               Any lien, right, power or interest, if any, which may
have arisen or intervened in the period between the recording of the said
mortgage and the execution of this lease, or any lien or judgment which may
arise at any time under the terms of this lease.

 

Although this
clause shall be self-operative upon the election of any such mortgagee, in 

 

29

 

confirmation
hereof, Tenant shall execute promptly any certificate that Landlord or such
mortgagee may request.

 

Landlord shall
obtain for Tenant’s benefit a non-disturbance agreement from the holder of any
existing mortgage or ground or underlying lease which is superior to this
lease, in the form then customarily used by the grantor of said agreement,
providing in substance that so long as Tenant is not in default under this
lease beyond any applicable grace period, then the grantor will not terminate
this lease or take any action to recover possession of the Demised Premises,
notwithstanding any foreclosure of the mortgage or default under, or terminate
of, the ground or underlying lease.  Any
and all costs imposed by the grantor of the agreement shall be paid by Tenant.

 

Notwithstanding anything
contained herein to the contrary, Tenant’s subordination of this lease as set
forth in this Section to any future mortgage or ground or underlying lease
which is superior to this lease is conditioned upon Landlord obtaining for
Tenant’s benefit a non-disturbance agreement from the future holder of any
mortgage or ground or underlying lease which is superior to this lease, in the
form then customarily used by the grantor of said agreement, providing in
substance that so long as Tenant is not in default under this lease beyond any
applicable grace period, then the grantor will not terminate this lease or take
any action to recover possession of the demised premises, notwithstanding any
foreclosure of the mortgage or default under, or terminate of, the ground or
underlying lease.  Any fees or costs
imposed by the grantor or its attorney, shall be paid by Tenant.

 

15.02. Attornment.

 

In the event that
any proceedings are brought for the foreclosure of, or in the event of an
exercise of the power of sale under, any mortgage made by Landlord covering the
premises of which the Premises are a part, subject to receipt of nondisturbance protection, Tenant shall
attorn to and acknowledge the purchaser or purchasers upon any foreclosure or
sale and recognize such purchaser or purchasers as the Landlord under this
lease.

 

15.03. Waiver of Termination Right.

 

Tenant waives the benefit of the provisions of any
statute or rule of law now or hereafter in effect which may give or
purport to give Tenant any right of election to terminate this lease or to
surrender possession of the Demised Premises in the event a superior lease or
superior mortgage is terminated or foreclosed, as the case may be.

 

ARTICLE 16

 

Construction of the Building

 

16.01. Changes to Building.

 

Subject to the provisions of Section 1.02 hereof,
Landlord may, at any time, without the same constituting an eviction of Tenant
or entitling Tenant to any abatement of rent, and without otherwise incurring liability
to Tenant, change the arrangement and/or location of (including the closing off
of) public entrances, passageways, doors, doorways, corridors, elevators,
stairs, toilets or other parts of the Building, provided that in so doing,
Landlord does not deny Tenant reasonable and comparable means of access to the Demised Premises for the
conduct of Tenant’s business and provided
that such change does not materially adversely affect the lobby area on
the Ramland Road side of the Building,
or change the  manufacturing space or
laboratory space within the Demised Premises in any manner.  Landlord shall use its commercially reasonable efforts to 

 

30

 

minimize interference with Tenant’s business in connection with any
change which Landlord is obligated to perform or desires to perform, in and to
the Building, pursuant to the terms, covenants, conditions, provisions and
agreements of this Lease.

 

16.02. Multi-Tenant Floors.

 

Subject to the
provisions of Section 1.02 hereof, Landlord may, without the same
constituting an eviction of Tenant or entitling Tenant to any abatement of
rent, and without otherwise incurring liability to Tenant, and without any
effect on any of Tenant’s obligations under this lease, rearrange the space
unit divisions and the public corridors on the floor upon which the Demised
Premises is located in any manner Landlord may determine, provided only that
the Demised Premises shall not be changed in any respect and that the Demised
Premises shall not have diminished access by public corridor to the
elevator(s), fire stair(s) and public toilet(s) serving said floor
and provided that such change does not change
in any respect the lobby area on
the Ramland Road side of the Building,
or the manufacturing space or laboratory space within the Demised
Premises.  Landlord shall use its commercially reasonable efforts to minimize interference
with Tenant’s business in connection with any change which Landlord is
obligated to perform or desires to perform, in and to the Building, pursuant to
the terms, covenants, conditions, provisions and agreements of this Lease.

 

ARTICLE 17

 

Compliance with Laws

 

17.01. Notice and Compliance With Laws.

 

Tenant shall give prompt notice to Landlord of any
written notice it receives of the violation of any law or requirement of public
authority affecting the Demised Premises, the Building or the Park, if
applicable, and (subject to Section 17.02) at its expense shall comply
with all laws and requirements of public authorities which shall, with respect
to the Demised Premises, the Building or the Park, if applicable, or the use or
occupancy thereof, or the abatement of any nuisance, impose any violation,
order or duty on Landlord or Tenant, arising from (i) Tenant’s specific manner
of use of Demised Premises, (ii) breach of any of Tenant’s obligations
hereunder, (iii) the manner of conduct of any business of Tenant or
operation of its installations, equipment or other property in the Demised
Premises, or (iv) any cause or condition created by or at the instance of
Tenant or its invitees.

 

17.02. Contest.

 

Tenant may, at its expense (and if necessary, in the
name of but without expense to Landlord), contest, by appropriate proceedings
prosecuted diligently and in good faith, the validity or applicability to the
Demised Premises, of any law or requirement of public authority, and Landlord
shall cooperate with Tenant in such proceedings, provided that:

 

(a)           Tenant shall defend, indemnify and hold
harmless Landlord against all liability, loss or damage which Landlord shall
suffer by reason of such contest (and any non-compliance in connection
therewith), including reasonable attorneys’ fees and other expenses incurred by
Landlord, and shall furnish such bond or other security as may be required
pursuant to the requirements of any mortgage affecting the Land, Building or
Demised Premises; and

 

(b)           Tenant shall keep Landlord advised as to
the status of such proceedings.

 

31

 

Tenant need not comply
with any law or requirement of public authority so long as Tenant shall be so
contesting the validity or applicability thereof to the Demised Premises in
accordance with this Section, provided that (v) noncompliance shall not
constitute a crime or an offense on the part of Landlord or any officer of
Landlord punishable by fine or imprisonment, (w) Landlord shall not be
subjected to civil complaint, (x) no part of the Building shall be in
danger of being condemned or vacated by reason of noncompliance or otherwise by
reason of such contest, (y) such noncompliance shall not cause either a
violation of the Certificate of Occupancy for the Building or of any licenses
or permits issued for the Building or a violation to be noted or issued against
the Building, and (z) title to the Demised Premises, the Real Property
and/or the Building is not adversely affected by reason of such contest.

 

ARTICLE 18

 

Insurance

 

18.01. Tenant’s Requirements.

 

Tenant covenants
to provide prior to entry upon the Demised Premises and to keep in full force
and effect during the period prior to the commencement of the term during which
Tenant shall enter upon and occupy any portion of the Demised Premises for any
purpose, and throughout the term of this lease, at its own cost, and with
responsible insurance companies of recognized standing, authorized to do
business in the State of New York and approved by Landlord, (i) public
liability and property damage insurance, written on an occurrence basis, to
afford protection in an amount not less than $2,500,000 combined single limit
for personal injury, death and property damage arising out of any one
occurrence, protecting Landlord and Tenant against any and all claims for
personal injury, death or property damage occurring in, upon or adjacent to the
Demised Premises and any part thereof, or arising from, related to, or in any
way connected with the conduct and operation of Tenant’s use of or occupancy of
the Demised Premises, which insurance shall name Landlord (and, at Landlord’s
request, Landlord’s mortgagees) as additional insureds, (ii) workers’
compensation insurance covering all persons employed by Tenant or its
contractors in connection with any work performed by or for Tenant, and (iii) plate
glass insurance covering  plate glass in
the Demised Premises, if any, provided, however, Tenant may elect to self
insure said plate glass.  All of Tenant’s
insurance shall be in form satisfactory to Landlord and shall provide that it
shall not be subject to cancellation, termination or change except after at
least 30 days’ prior written notice to Landlord.  All such policies or duly executed
certificates for the same (in both instances with satisfactory evidence of the
payment of the premium therefor) shall be deposited with Landlord not less than
30 days prior to the day such insurance is required to be in force and upon
renewals of said policies not less than 30 days prior to the expiration of the
term of such coverage.  Landlord shall
have the right at any time and from time to time during the term of this lease
on not less than 30 days notice to Tenant to require that Tenant increase the
amount and/or types of coverage required to be maintained under this Article to
the amounts and/or types of coverage then generally required of tenants  in first class office buildings in the Town
of Orangeburg .  The minimum limits of
liability insurance required pursuant to clause (i) of this Section shall
in no way limit or diminish Tenant’s liability under Section 29.02 hereof.

 

18.02. Blanket Policies.

 

The insurance required to be provided by Tenant
hereunder may be effected by “umbrella” policies. Any such policy or policies
shall, as to the Premises, otherwise comply as to endorsements and coverage
with the provisions of this Article.

 

32

 

18.03. Tenant’s Compliance.

 

Tenant shall not commit or permit any violation of the casualty and
rent insurance policies carried by Landlord, or do or permit anything to be
done, or keep or permit anything to be kept, in the Demised Premises, the
Building or the Park, if applicable, which, in case of any of the foregoing, (i) could
result in termination of any of such policies, (ii) could adversely affect
Landlord’s right of recovery under any such policies or, (iii) would
result in reputable and independent insurance companies refusing to insure the
Building or property of Landlord therein or in the Park, if applicable, in
amounts reasonably satisfactory to Landlord and its mortgagees, in compliance
with the requirements of insurance bodies. 
If any such action by Tenant, or any failure by Tenant either to comply
with the requirements of insurance bodies with respect to the Demised Premises
or to perform any of Tenant’s obligations hereunder, or any use of the Demised
Premises by Tenant (whether or not permitted under Article 10) shall
continue after Tenant has received notice thereof, and result in the
cancellation of any such insurance or an increase in the rate of premiums
payable with respect to such policies carried by Landlord, Tenant shall
indemnify and hold Landlord harmless against any loss which would have been
covered by such insurance and reimburse Landlord for the resulting additional
premiums which shall thereafter be paid by Landlord.  Tenant shall make such reimbursement within
30 days after the receipt of notice from Landlord that such additional premiums
have been paid by Landlord, without limiting Landlord’s rights under Articles
33, 34 and 35.

 

18.04. Waiver of Subrogation.

 

Landlord and Tenant shall cause each property
insurance policy carried by either of them to provide that the insurer waives
all rights of recovery by way of subrogation or otherwise against the other
party in connection with any loss or damage which is covered by such policy or
that such policy shall otherwise permit, and shall not be voided by the
releases provided for herein. To the extent that Tenant shall be a self-insurer with
respect to Tenant’s Property, Tenant shall and hereby does waive its right of
recovery, if any, against Landlord, its agents and employees, for loss, damage
or destruction of Tenant’s Property.

 

18.05 Landlord’s
Insurance.

 

Landlord agrees to maintain: (i) fire and extended insurance on an “all-risk”
basis on the Building, in an amount equal to not less than the full replacement
cost thereof; with commercially reasonable deductibles, as reasonably
determined by Landlord and (ii) commercial general liability insurance for
personal injury and property damage in commercially reasonable amounts, as
reasonably determined by Landlord.

 

ARTICLE 19

 

Tenant’s Changes

 

19.01. Permitted Changes.

 

After completion of the initial preparation of the Demised Premises as
provided for in Article 3.01, Tenant may, at any time and from time to
time during the term of this lease, at its expense, make or have made such
other alterations, additions, installations, substitutions, improvements and
decorations (hereinafter collectively called “changes” and, as applied to
changes provided for in this Article, “Tenant’s Changes”) in and to the Demised
Premises, but not structural alterations, additions or changes, as Tenant may
reasonably consider necessary for the conduct of its business in the Demised
Premises, provided that:

 

(a)           The outside appearance of the Building,
or the strength of the Building or of any of its exterior walls, supporting
beams, columns, floor slabs, foundations or elevator 

 

33

 

systems is not
adversely affected;

 

(b)           No such Tenant’s Changes shall operate to
reduce the Rentable Area of the Demised Premises or the value of the Building;

 

(c)           No such Tenant’s Changes shall materially
and adversely affect (or increase the cost of) any service required to be
furnished by Landlord to the Demised Premises or to any other portion of the
Building;

 

(d)           In performing the work involved in making
such changes, Tenant shall be bound by and observe all applicable conditions
and provisions contained in Sections 3.02(b), 3.03 and 3.04 as if such changes
were included in the initial preparation of the Demised Premises;

 

(e)           In the case of any Tenant’s Changes,
other than decorations, Tenant shall give notice to Landlord, including general
plans and specifications (if any) for such Tenant’s Changes, at least 20 days
before the work of making such Tenant’s Changes shall commence;

 

(f)            If the reasonably anticipated cost of any
Tenant’s Change or series or group of proposed Tenant’s Changes intended to be
made at or about the same time shall be more than THREE AND 00/100 ($3.00)
DOLLARS per rentable square foot of the area affected by the alteration (“Substantial
Change”), or if any Tenant’s Change shall include a change which under the
provisions of the Building Code of the Town of Orangeburg then in effect
requires an alteration permit, Tenant, prior to commencement of such change,
shall obtain consent thereto from Landlord; Landlord agrees that its consent
shall not be unreasonably withheld, conditioned or delayed, but Tenant agrees
that any such consent may be upon condition that upon the expiration or earlier
termination of this lease, Tenant shall restore the Demised Premises to the
condition in which it would be if the change in respect of which the consent is
required had not been made.  It is agreed
that Landlord shall be deemed to be acting reasonably in refusing to give any
such consent if the making of such change would constitute a default under a
mortgage encumbering the Real Property or Building; Tenant may, upon prior
notice to Landlord, but without the prior consent of Landlord, (a) perform
minor cosmetic improvements, such as painting and wallpapering, and (b) perform
minor alterations, additions or improvements which are non-structural, do not
affect Building systems, or require a building permit and costing less than
THREE AND 00/100 ($3.00) DOLLARS per rentable square foot of the area affected
by the alteration.

 

(g)           If because of the nature of any Tenant’s
Change, compliance with any provisions of a mortgage encumbering the Real
Property or Building is required, Tenant at its own expense, shall comply therewith;
and

 

(h)           In connection with any Tenant’s Changes,
Tenant shall, at its own cost and expense, obtain such permits and certificates
as shall be required under the Building Code of the Town of Orangeburg then in
effect, and all other permits and certificates of any other governmental
authority having jurisdiction over the Building.

 

19.02. Substantial Changes.

 

Each Substantial Change shall be made under the supervision of an
architect or engineer selected by Tenant and approved by Landlord, which approval
shall not be unreasonably withheld, conditioned or delayed.  Each Substantial Change shall be made in
accordance with detailed plans and specifications prepared by an architect or
engineer designated by Tenant and approved by Landlord, such approval not to be
unreasonably withheld, conditioned or delayed. 
Copies of all such plans and specifications shall be delivered by Tenant
to Landlord, and shall be subject to the advance approval of Landlord, which
approval shall not be unreasonably withheld, conditioned or 

 

34

 

delayed and which
consent (or rejection) shall be provided within ten (10) days of Landlord’s
receipt of said plans and specifications. 
If any plans and/or specifications are prepared in connection with any
Tenant’s Change, Tenant shall furnish copies thereof to Landlord.

 

19.03. Substantial Changes in Excess of $100,000.

 

If the estimated cost of any proposed Tenant’s Change shall be $100,000
or more or if the estimated collective cost of any series or group of proposed
Tenant’s Changes intended to be made at or about the same time shall be
$100,000 or more, Tenant shall, at its sole cost and expense and before
commencing same, furnish to Landlord (and the holder of any mortgage affecting
the Real Property or Building, if therein required), (i) a surety company
bond, issued by a surety company approved by Landlord, which approval shall not
be unreasonably withheld, (and the holder of any such mortgage where required),
in an amount at least equal to the estimated cost of such change, or the
estimated collective cost of such group of permitted changes, as the case may
be, or (ii) other security satisfactory to Landlord (and the holder of any
such mortgage where required), in each case guaranteeing to Landlord (and the
holder of any such mortgage where required) the fully paid completion of the
proposed change, or proposed permitted changes, as the case may be, within a
reasonable time, free and clear of all liens, encumbrances, chattel mortgages, conditional
bills of sale and other claims and charges, and in accordance with any plans
and specifications therefor approved by Landlord (and the holder of any such
mortgage where required).

 

19.04. Restricted Changes.

 

Except as provided in this Article, Tenant shall not have any right to
make any changes in the Demised Premises without the prior consent of Landlord.

 

ARTICLE 20

 

Tenant’s Property

 

20.01. Tenant’s Property.

 

Tenant’s Property shall be and shall remain the property of Tenant, may
be removed by it at any time during the term of this lease.  Tenant shall repair or pay the cost of
repairing any damage to the Demised Premises or to the Building resulting from
such removal.

 

20.02. Abandonment of Tenant’s Property.

 

Any of Tenant’s Property which shall remain in the Demised Premises 10
days following the expiration or earlier termination of the term of this lease
and the removal of Tenant from the Demised Premises, may, at the option of
Landlord, be deemed to have been abandoned and either may be retained by
Landlord as its property or be disposed of by Landlord at Tenant’s expense,
without accountability to Tenant, in such manner as Landlord may see fit,
subject to the reimbursement provisions of Section 20.05.

 

20.03. Leasehold Improvements.

 

All permanent leasehold improvements at any time constructed or
installed in the Demised Premises, except as hereinafter otherwise provided,
shall remain in the Demised Premises upon the expiration or sooner termination
of the term of this lease.  All leasehold
improvements which Tenant is required to remove under the following sentence,
shall be removed by Tenant and in the event any damage is caused by such
removal, the damage shall be repaired by Tenant at Tenant’s 

 

35

 

expense.  If any alteration which shall require the
Landlord’s consent or approval is an item which is not a customary leasehold
improvement, such as (for illustrative purposes only) a private elevator,
vault, internal stairway or private lavatory, then unless Landlord shall give
written notice to Tenant to the contrary at the time it grants consent or
approval for the alteration, Landlord will require removal of said alteration
by Tenant at the expiration or sooner termination of the term of this lease.

 

20.04. End of Term.

 

Upon the expiration or sooner termination of the term of this lease,
Tenant shall quit and surrender possession of the Premises, broom clean and
dry, in good order and condition, ordinary wear and tear excepted, and Tenant
shall remove Tenant’s Property from the Premises and repair any damage caused
by such removal.  All leasehold
improvements which Tenant is required to remove shall be removed by Tenant, and
any damage caused by such removal shall be repaired by Tenant at Tenant’s
expense.

 

20.05. Removal by Landlord.

 

In the event Tenant fails to (i) remove any item of Tenant’s
Property or any leasehold improvement or alteration it is required to remove,
or (ii) repair damage caused by such removal, ordinary wear and tear excepted,
then Landlord may effect such removal and repair; and Tenant shall pay Landlord’s
costs for such removal and repair, such obligation to survive the expiration or
sooner termination of the term of this lease.

 

ARTICLE 21

 

Tenant’s Repairs

 

21.01. Tenant’s Required Repairs.

 

Tenant shall, at its own expense, take good care of the Demised
Premises and all equipment (wherever located) exclusively servicing the Demised
Premises including, without limitation, heating, ventilating and air conditioning equipment
exclusively serving the Demised Premises (other than as provided for in Article 23.01)
, and shall be responsible for replacement of all fluorescent tubes, ballasts
and light bulbs installed in the Demised Premises, including emergency lights
located within the Demised Premises. 
Tenant, at its expense shall make all repairs, in the Demised Premises
and the Building as shall be required by reason of the negligence or other
improper conduct of Tenant or its invitees. 
In addition to the foregoing, Tenant shall, at Tenant’s expense, keep in
good order and condition all installations, alterations and additions in the
Demised Premises comprising (i) Tenant’s Property (including Tenant’s
pneumatic tubes, conveyors, mail chutes and air-conditioning equipment installed
by or at the expense of Tenant), (ii) any private lavatories and kitchens
within the Demised Premises, including all fixtures therein, (iii) any
carpeting or wall covering within the Demised Premises, and (iv) any
interior glass within the Demised Premises, and make all repairs thereto,
ordinary or extraordinary, foreseen or unforeseen, as from time to time may be
necessary, whether or not such repairs are or shall be made necessary by reason
of fault or neglect on the part of Tenant.

 

21.02. Windows.

 

Tenant shall not clean the exterior side of any window in the Demised
Premises or require, permit or allow it to be cleaned, from the outside, in
violation of any law or requirement of public authority.

 

36

 

21.03. Damage to Building.

 

All damage to the Building caused by Tenant in moving property into or
out of the Building or in installing or removing furniture, equipment or
fixtures shall promptly be repaired by Tenant at its expense.  If Tenant permits consumption of food in the
Demised Premises, Tenant, at its expense, shall employ the regular services of
an exterminator to keep the Demised Premises free of vermin occasioned by such
consumption.

 

ARTICLE 22

 

Landlord’s Repairs, Maintenance, Cleaning

 

22.01. Landlord’s Obligations.

 

Landlord, at its expense, shall keep and maintain the Building and its
fixtures, appurtenances, systems and facilities (other than all equipment
(wherever located) exclusively servicing the Demised Premises including, without
limitation, heating,
ventilating and air conditioning equipment exclusively serving the Demised
Premises), in working order, condition and repair and shall make all repairs,
structural and otherwise, interior and exterior, as and when needed in or about
the Demised Premises, except for items installed by or for Tenant at Tenant’s
expense and except for those repairs for which Tenant is expressly responsible
pursuant to any other provisions of this lease.

 

22.02. Cleaning.

 

(a)           (i)            Landlord shall cause
the portion of the Demised Premises used as offices to be cleaned in accordance
with the provisions of the Cleaning Specifications annexed hereto and made part
hereof.  Tenant shall provide Landlord
with reasonable access to the interior of all windows within the Demised
Premises, as a condition precedent to Landlord’s obligation to clean same.
Landlord shall have no obligation to cause the portion of the Demised Premises
used as laboratory, warehouse and distribution and/or manufacturing to be
cleaned.

 

(ii)           Tenant shall, at Tenant’s expense,
keep the portion of the Demised Premises used as laboratory, warehouse and
distribution and/or manufacturing clean and in good order, to the reasonable
satisfaction of Landlord.

 

(iii)          Tenant shall, at Tenant’s expense, remove
or cause to be removed,  Tenant’s refuse
and rubbish from the portion of the Demised Premises used as laboratory,
warehouse and distribution and/or manufacturing.  Tenant may deposit said refuse and rubbish in
Landlord’s compactor, provided, however, any such refuse and rubbish which
requires special handling or which is excessive (i.e. exceeds that normally
accumulated daily in the routine or ordinary business office occupancy) shall
not be deposited in Landlord’s compactor and Tenant shall, at its sole cost and
expense, contract for the removal of such refuse and rubbish.  Landlord reserves the right to select a
refuse disposal contractor to serve the Building; provided that the rates for such hauler are competitive.  The name of such contractor shall be available
from Landlord upon request, and Tenant shall employ no other refuse disposal or
carting contractor without prior written approval from Landlord, which approval
shall not be unreasonably withheld, conditioned or delayed.  The removal of refuse and rubbish shall be
subject to such rules and regulations as in the judgment of Landlord are
necessary for the proper operation of the Building and of the Real Property and
shall be in accordance with all applicable laws and requirements of public authorities.

 

(b)           Tenant shall pay to
Landlord, within 30 days after demand, accompanied by reasonable documentation,
the costs and expenses incurred by Landlord as a result of (i) cleaning 

 

37

 

performed by or for the account of Landlord in the
Demised Premises, the Building or on the Real Property, necessitated by (v) misuse
or neglect on the part of Tenant or its invitees, (w) use of any portion
of the office portion of the Demised Premises for preparation, serving or
consumption of food or beverages, reproducing operations, private lavatories or
other special purposes requiring greater or more difficult cleaning work than
that normally associated with office areas, (x) interior glass surfaces in
the office portion of the Demised Premises, (y) non-building standard
materials or finishes installed by Tenant or at its request in the office
portion of the Demised Premises, or (z) increases in frequency or scope of
any of the items set forth in the Cleaning Specifications as shall have been
requested by Tenant and provided by Landlord, and (ii) removal from the
office portion of the Demised Premises, the Building or Real Property of (y) so
much of any refuse and rubbish of Tenant as shall exceed that normally accumulated
daily in the routine or ordinary business office occupancy, or (z) all of
the refuse and rubbish of Tenant’s machines and eating facilities requiring
special handling in the office portion of the Demised Premises.  Tenant shall provide Landlord, its contractors
and their employees with reasonable access to the office portion of the Demised
Premises during hours other than regular business hours, together with the use
of Tenant’s lights, electricity and water, all as may be required for the
purpose of cleaning the office portion of the Demised Premises.

 

22.03. Extraordinary Refuse.

 

Extraordinary waste (such as crates, cartons, boxes and used furniture
and equipment) shall be removed from the in the office portion of the Demised
Premises by Landlord, at Tenant’s cost and expense.  At no time shall Tenant place any waste of
any kind in any public area.  Anything
placed in a public area by Tenant shall be deemed abandoned and of no value to
Tenant, and Landlord may have same removed and disposed of, and the cost
thereof shall be paid by Tenant to Landlord, within 30 days after submission of
a statement therefor, with reasonable
supporting documentation,  without
limiting Landlord’s rights under Articles 33, 34 and 35.

 

22.04. Quality of Repairs.

 

All repairs to be made by Tenant pursuant to this lease shall be of
first-class quality and workmanship.  If
Tenant shall fail to commence any required repairs within a reasonable time, or
in any event within 10 days after service of a notice by Landlord requesting such
repairs, or after commencing such repairs shall fail to complete them with
reasonable diligence, Landlord may (but shall not be obliged to) make or
complete such repairs at the expense of Tenant.

 

22.05. Required Changes.

 

If at any time during the term of this lease there is imposed upon
Landlord by any governmental authority having jurisdiction, any obligation or
requirement to perform any structural or non-structural alteration, change or
improvement (collectively, “changes”) to the Building which changes are as a
result of Tenant’s specific manner of use and are not required to be performed
by Tenant pursuant to any provision of this lease, Tenant shall pay to
Landlord, as additional rent, Tenant’s Proportionate Share of all costs and
expenses incurred by Landlord in performing such changes.  Such payment by Tenant shall be due to
Landlord within 30 days after rendition of a bill therefor, accompanied by a
statement setting forth the changes performed by Landlord, with costs described in reasonable detail.

 

38

 

ARTICLE 23

 

Heat, Ventilation and Air-Conditioning

 

23.01. Access and Repair.

 

(a)           Landlord shall have reasonable access to
any and all heating, air-conditioning and ventilating equipment in the Demised
Premises. Landlord shall repair and maintain in good working order the heating,
air-conditioning and ventilating equipment servicing the Demised Premises,
except as provided is Section 23.01(b) below. The cost of maintaining
said Building systems shall, except to the extent set forth in this Section and
in Section 23.02, be deemed an Operating Expense.  Any damage caused to the Building heating,
air-conditioning and ventilating equipment, appliances or appurtenances as a
result of the negligence of, or careless operation of the same by Tenant or its
invitees, shall be repaired by Landlord and the cost and expense thereof shall
be paid by Tenant, as additional rent, within 30 days after submission of a
statement therefor, along with a
detailed explanation of the costs, without limiting Landlord’s rights
under Articles 33, 34 and 35.  Landlord
shall have no maintenance or repair obligation as to heating, ventilating or
air conditioning equipment servicing the Demised Premises only (wherever
located), whether said equipment is existing as of the Commencement Date or
installed by, or at the expense or direction of, Tenant.

 

(b)           Tenant shall repair and replace, as
necessary, and maintain in good working order, the heating and air conditioning
unit and system exclusively servicing the laboratory and/or manufacturing area
within the Demised Premises (and any replacement thereof) and any other heating
and air conditioning units and systems exclusively servicing the Demised
Premises which may hereinafter be installed by Tenant.  Such maintenance shall include changing the
systems filters not less frequently than four times per year.  Tenant shall enter into service and
maintenance contracts for such maintenance with Landlord or Tenant may enter
into contracts for such maintenance with third parties pursuant to Section 3.02(b),
provided that Tenant submits to Landlord copies of such agreements prior to the
Commencement Date.  Tenant shall submit
to Landlord copies of all invoices indicating dates of service and work performed.

 

23.02. Tenant’s Requirements.

 

Landlord will not be responsible for the failure of the
air-conditioning system to meet its maximum performance specifications prior to
the proper balancing of the systems, or, with respect to the office portion of
the Demised Premises, if such failure results from the occupancy of the Demised
Premises by more than an average of 1 person for each 150 square feet of Tenant’s
Rentable Area or if Tenant installs and operates machines and appliances the
installed electrical load of which when combined with the load of all lighting
fixtures exceeds 4 watts per square foot of Tenant’s Rentable Area in any one
room or other area.  If the use of the
Demised Premises in a manner exceeding the aforementioned occupancy and electrical
load criteria, or the rearrangement, or partitioning after the initial
preparation, of the Demised Premises, results in the interference with the
normal operation of the air-conditioning in the Demised Premises, and as a
result thereof changes in the air-condition system servicing the Demised
Premises are needed, such changes shall be made by Landlord, at Tenant’s
request and at Tenant’s expense, and shall be paid within 30 days after
submission of a statement therefor.

 

23.03. Additional Tenant Requirements.

 

Tenant shall keep all windows closed and lower and close window
coverings when necessary because of the sun’s position.  Tenant agrees to cooperate fully with
Landlord and to comply with all reasonable regulations and requirements
Landlord may establish for the proper functioning and protection of the
heating, air-conditioning and ventilating systems.

 

39

 

ARTICLE 24

 

Landlord’s Other Services

 

24.01. Elevators.

 

Landlord shall provide Tenant, in common with other tenants in the
Building, passenger elevator service.  If
Landlord shall be obliged to repair, maintain or replace such elevators by
reason of the negligence or other improper conduct of Tenant or its invitees,
such work shall be performed at Tenant’s expense; Tenant shall pay for such
work, within 30 days after submission of a statement therefor, accompanied by reasonable supporting
documentation, without limiting Landlord’s rights under Articles 33, 34
and 35.

 

24.02. Interruption of Services.

 

Landlord reserves the right, without any liability to Tenant, to
interrupt, curtail, suspend or stop any of Landlord’s services to Tenant or the
Demised Premises (including heat, ventilation, and water and such other
services as may hereafter be undertaken by Landlord for Tenant) at such times
as may be necessary, and for so long as may be reasonably required, by reason
of the making of repairs or changes which Landlord is required by this lease to
make or in good faith deems necessary. 
In each such case Landlord shall exercise reasonable diligence to effect
restoration of service and shall give Tenant reasonable notice, when
practicable, of the commencement and anticipated duration of such interruption,
curtailment, suspension or stoppage of any of Landlord’s services.  Before commencing any work required in
connection with the foregoing, or any other work or repairs in the Demised
Premises which would interfere with Tenant’s use thereof, Landlord shall
endeavor to notify Tenant of the need for and nature of the work and repairs
and the manner in which and the length of time for which such work or the
making of such repairs will affect the Demised Premises.  Such notice with respect to the making of
emergency repairs shall, if time permits, be given by telephone or in person to
such representative of Tenant at the Demised Premises as Tenant may have
designated to receive such notice. 
Except in the event of an emergency, Tenant may require Landlord to
perform such work or make such repairs after Tenant’s business hours if they
would otherwise create a material interference with Tenant’s use of the Demised
Premises and can properly be accomplished at such time.

 

Interruption or curtailment of any service maintained in the Building
or at the Real Property, if caused by force majeure, shall not entitle Tenant
to any claim against Landlord or to any abatement in rent, and shall not
constitute a constructive or partial eviction, unless Landlord fails to take
measures as may be reasonable under the circumstances to restore the service
without undue delay. If the Premises are rendered untenantable in whole or in
part, for a period of ten (10) consecutive business days, by the
interruption or curtailment of any service Landlord is required to provide
hereunder (if not caused by force majeure) or by the making of repairs,
replacements or additions, other than those made with Tenant’s consent or
caused by misuse or neglect by Tenant, or Tenant’s agents, servants, visitors
or licensees, there shall be a proportionate abatement of Rent from and after
said tenth (10th) consecutive business day and continuing for the period of
such untenantability. In no event, shall Tenant be entitled to claim a
constructive eviction from the Premises unless Tenant shall first have notified
Landlord in writing of the condition or conditions giving rise thereto, and if
the complaints be justified, unless Landlord shall have failed, within a
reasonable time after receipt of such notice, to remedy, or commence and
proceed with due diligence to remedy such condition or conditions, all subject
to force majeure.

 

40

 

24.03.   Tenant’s Self-help.

 

If (i) Landlord
fails to perform any of its obligations under this Lease (other than by reason
of Tenant’s acts or omissions or unavoidable delays), which failure (A) materially
interferes with Tenant’s use of the Demised Premises for the conduct of its
business and (B) Landlord fails to commence to remedy such failure to
perform within ten (10) days from the date Tenant notifies Landlord of
such failure (which shall be shortened to twenty-four (24) hours in the event
of an emergency, as hereinafter defined) and (ii) in the case of any such
failure (other than an emergency) (A) Tenant again notifies Landlord after
the expiration of such 10-day period of such failure and of Tenant’s intention
to cure same, along with an explanation in reasonable detail of how Tenant’s
intends to cure the failure and associated expenses, which notice shall specify
that such notice is being given in accordance with this Article 24, and
shall contain the following statement in capitalized bold type: “IF YOU FAIL TO PERFORM THE OBLIGATION REFERENCED IN THIS NOTICE
WITHIN THE TIME PERIOD SPECIFIED IN ARTICLE 24 OF THE LEASE, WE SHALL EXERCISE
OUR SELF-HELP REMEDIES UNDER THAT SECTION” and (B) such failure
continues for not less than five (5) consecutive days from the date
Landlord receives such second notice (except that no such second notice shall
be required in an emergency), provided that, in the case of a failure which for
causes beyond Landlord’s reasonable control cannot with due diligence be cured
within such 5-day period, such 5 day period shall be extended for such period
as may be necessary to cure such failure provided that Landlord shall be
diligently prosecuting such cure, then at Tenant’s election and as Tenant’s
sole remedy (if Tenant elects to exercise its self-help rights hereunder),
Tenant may take such actions as may be reasonably necessary to cure such
failure as specified in Tenant’s notice, unless Landlord has objected to such
action and has specified an alternate cure, and Tenant may offset against the
fixed rent thereafter payable by Tenant any reasonable out-of-pocket amount
expended by Tenant, but in no event to exceed fifty percent (50%) of the fixed
basic rent due under the Lease until fully recouped. Tenant may exercise its
self-help remedy provided the performance of same by Tenant (x) takes
place exclusively within the Demised Premises, (y) does not affect any
space (including the Common Facilities) outside the Demised Premises unless it
materially affects Tenant’s ingress and egress to and from the Demised
Premises, and (z) does not affect the structure, electrical, HVAC,
plumbing or mechanical systems of the Building. (unless such electrical, HVAC,
plumbing or mechanical systems exclusively service the Demised Premises and no
other areas of the Building)   and
provided Tenant furnishes Landlord with copies of paid receipts for such work
along with other supporting documentation as Landlord may reasonably
require.  For purposes hereof, Landlord
shall be deemed to have commenced to cure a failure or service interruption if
Landlord has begun to take such action as is reasonably practicable under the
circumstances (e.g., inspecting the situation, calling necessary
contractors, etc.), even thought actual repairs may not have commenced.  In the exercise of Tenant’s rights under this
Section 24.03, Tenant agrees that Tenant shall use only those contractors
then on the approved list of contractors for the Building as such list may be
furnished from time to time during the Term by Landlord to Tenant.  As used herein an “emergency” shall be deemed
to be a situation which causes imminent damage to person or property or which
interferes with Tenant’s conduct of business for the permitted use. In the
event Tenant exercises the self help remedies in accordance with this Section 24.03,
Tenant hereby agreesthat Tenant’s indemnification set forth in Section 29.02
shall be applicable.  If at any time
during Tenant’s performance of its self help remedies under this Section 24.03,
Landlord commences to remedy such failure to perform, Tenant agrees to cease
such actions.  In no event shall Tenant
have any rights under this Section 24.03 (i) if the failure or
service interruption was caused by Unavoidable Delays or any act, omission,
negligence or willful misconduct of Tenant or any of its contractors, agents,
employees, servants, licensees or invitees or (ii) if Tenant is in default
under this Lease beyond applicable notice and grace periods or (iii) if
Mack-Cali Realty Corporation or an affiliate thereof has an ownership interest
in the Real Property and the Building.

 

41

 

ARTICLE 25

 

Tenant’s Access

 

25.01. Tenant’s Access to Demised Premises.

 

During the term of this lease Tenant may conduct its business in the
Demised Premises on such days and hours as it may determine, and Tenant and its
invitees at all times shall have access to the Demised Premises by means of
doorways, passageways, corridors, stairways, elevators, entrances and service
entrances in the Building selected by Landlord and affording access to the
Demised Premises.  Notwithstanding the
foregoing, Landlord may, during times other than regular business hours and
regular business days, limit or restrict access to the Building and Demised
Premises to all persons other than Tenant and employees and invitees.  Reasonable rules and procedures to be
followed in order to gain access to the Building and Demised Premises may, from
time to time, be established and amended by Landlord, and shall be complied
with by Tenant, its employees and invitees  provided same are uniformly enforced in the
Building as against all tenants. Tenant will have access to the Demised
Premises 24 hours a day, 7 days a week, subject to the terms and provisions of
this Lease.  Tenant’s right to use the
Demised Premises for the Permitted Use 7 days a week shall be subject to, and
only if permitted by, Legal Requirements.

 

ARTICLE 26

 

Landlord’s Access

 

26.01. Lines Through Demised Premises.

 

Tenant shall permit Landlord to install, use and maintain additional
utility and other pipes, ducts, lines, flues and conduit in the Demised
Premises, provided:

 

(a)           Such installations shall be so located as
to cause the least possible interference with the Tenant’s use of the Demised
Premises and the conduct of its operations therein, shall not unreasonably
damage the appearance or materially reduce the floor area of the Demised
Premises or affect Tenant’s layout; in each case consistent with requirements
of any laws and requirements of public authorities and insurance bodies if such
installation is required by the aforesaid public authorities or insurance
bodies;

 

(b)           The installation shall be performed at
such times and in such manner as to create the least practicable interference
with Tenant’s use of the Demised Premises and the conduct of its operations
therein; and

 

(c)           Landlord shall repair and restore all
damage caused by such installations.

 

(d)           Landlord shall
do nothing to decrease the rentable area of the Premises and/or the utility
thereof by Tenant (except to a deminimus extent). Any installation which may be
made by Landlord in and to the Premises shall be boxed or concealed.

 

Where access doors are required for mechanical equipment in or adjacent to
the Demised Premises, Landlord shall furnish and install such access doors and
confine their location, wherever practicable, to closets, coat rooms, toilet
rooms, corridors and kitchen or pantry rooms. 
Landlord and Tenant will cooperate with each other in the location of
Landlord’s and Tenant’s facilities requiring such access doors.

 

26.02. Access to Demised Premises.

 

Landlord and/or Landlord’s agents shall have the right, upon advance
request made to Tenant, or to a designated representative of Tenant at the
Demised Premises, to enter and pass through the Demised Premises or any part or
parts thereof during business hours (i) to examine the 

 

42

 

Demised Premises
and to show them to the lessors of underlying or ground leases or mortgagees
and to prospective purchasers, mortgagees or lessees of the Real Property, and (ii) for
the purpose of performing such maintenance and making such repairs or changes
in or to the Demised Premises or in or to the Building or its facilities as may
be provided for or permitted by this lease or deemed necessary by Landlord for
the benefit of the Demised Premises or other portions of the Building or as may
be mutually agreed upon by the parties or as Landlord may be required to make
by laws and requirements of public authorities. 
Landlord shall be allowed to take all materials into and upon the Demised
Premises that may be required for such repairs, changes or maintenance, without
being deemed thereby to evict Tenant from the whole or any part of the Demised
Premises.  Landlord’s rights under this Section shall
be exercised in such manner (not involving any overtime expenses, unless Tenant
shall agree to reimburse Landlord for such expenses as additional rent) as to
create the least practicable interference with Tenant’s normal conduct of its
business in the Demised Premises.

 

26.03. Access Upon Emergency.

 

Landlord shall also have the right to enter on and pass through the
Demised Premises, or any part thereof, at such times as such entry shall be
required by emergency circumstances affecting the Demised Premises or the
Building.  In such event, if practicable,
Landlord or its agents shall be accompanied by a designated representative of
Tenant or a member of the police, fire, water or other municipal department
concerned or of a recognized protection company or of a public utility which is
concerned.

 

26.04. Access During Twelve Months.

 

During the period of 12 months prior to the Expiration Date, Landlord
may exhibit the Demised Premises to prospective tenants, during regular
business hours, upon prior notification to Tenant, except that Landlord may
show the Demised Premises to prospective tenant anytime during the Term if
Tenant requests Landlord’s consent to sublease the Demised Premises or to
assign this Lease or if Tenant is in default under the Lease. During the last
twelve (12) months of the Term, Landlord or any prospective tenant shall have
the right to enter the space to perform inspections, surveys, measurements or
such other reasonable activities as may be necessary to prepare the Demised
Premises for occupancy by the succeeding tenant. Tenant shall have the right to
have a representative of Tenant accompany Landlord and its invitees in the
Demised Premises.

 

ARTICLE 27

 

Shoring

 

27.01. Access for Protection.

 

If an excavation or other substructure work shall be undertaken or
authorized upon land adjacent to the Building or beneath the Building, Tenant,
without liability on the part of Landlord, shall afford to the person causing
or authorized to cause such excavation or other substructure work license to
enter upon the Demised Premises for the purpose of doing such work as such person
shall deem to be reasonably necessary to protect or preserve any of the walls
or structures of the Building or surrounding lands from injury or damage and to
support the same by proper foundations, pinning and/or underpinning, provided
that such entry (except in the event of an emergency) shall be accomplished in
the presence of a representative of Tenant, who shall be designated by Tenant
promptly upon Landlord’s request.

 

43

 

27.02. No Liability.

 

The said license to enter
the Demised Premises shall be granted by Tenant without any claim for damages
or indemnity against Landlord, other than its gross negligence or willful
misconduct and Tenant shall not be entitled to any diminution of rent on
account therefor. Landlord shall use its commercially reasonable
efforts to ensure that such party minimizes interference with Tenant’s business
in connection with any work which Landlord is obligated to performed hereunder.

 

ARTICLE 28

 

Notice of Accidents, Fire, Damage and Defects

 

28.01. Notice to Landlord.

 

Tenant shall give
prompt notice to Landlord of any of the following of which Tenant shall have
knowledge:  (i) any accident in or
about the Demised Premises or the Building for which Landlord might be liable, (ii) all
fires in the Demised Premises, and (iii) all damage to, or defects in, the
Demised Premises (including the fixtures, equipment and appurtenances
constituting part thereof), or in any parts or appurtenances of the Building’s
sanitary, electrical, heating, ventilating, air-conditioning, elevator and
other systems located in or passing through the Demised Premises or any part
thereof.

 

ARTICLE 29

 

Landlord Not Liable, Indemnity and Exculpation

 

29.01. No Liability of Landlord.

 

Except for the
negligence of Landlord, its agents or employees, Landlord and its agents shall
not be liable for any damage to property of Tenant or others entrusted to
employees of the Building, nor for the loss of or damage to any property of
Tenant by theft or otherwise.  Except for
the negligence of Landlord, its agents or employees, Landlord or its agents
shall not be liable for any injury or damage to persons or property resulting
from fire, explosion, falling plaster, steam, gas, electricity, water, rain or
snow which may leak from any part of the Building or from the pipes, appliances
or plumbing works of the same, or from any other place, or from dampness or any
other cause of whatsoever nature; nor shall Landlord or its agents be liable
for any such damage caused by other tenants or persons in, upon or about said
Building, or caused by operations in construction of any public or quasi-public
work.

 

29.02. Indemnification.

 

Tenant shall
defend, indemnify and save harmless Landlord and its agents and employees
against and from all liabilities, obligations, damages, penalties, claims,
costs, charges and expenses, including reasonable attorneys’ fees, which may be
imposed upon or incurred by or asserted against Landlord and/or its agents or
employees by reason of any of the following occurring during the term, or
during any period of time prior to the Commencement Date that Tenant may have
been 

 

44

 

given access to or
possession of all or any part of the Demised Premises:  (i) any work or thing done in, on or
about the Demised Premises or any part thereof by or at the instance of Tenant,
or any of its invitees, (ii) any negligent or otherwise wrongful act or
omission on the part of Tenant or any of its invitees, (iii) any accident,
injury or damage to any person or property occurring in, on or about the
Demised Premises or any part thereof, or vault, passageway or space adjacent
thereto caused by the negligence of Tenant or any of its invitees, and (iv) any
failure on the part of Tenant to perform or comply with any of the covenants,
agreements, terms, provisions, conditions or limitations contained in this
lease on its part to be performed or complied with.  In case any action or proceeding is brought
against Landlord by reason of any such claim, Tenant upon notice from Landlord
shall, at Tenant’s expense, resist or defend such action or proceeding by
counsel approved by Landlord, which approval Landlord shall not unreasonably
withhold. Counsel selected by Tenant’s insurance companies shall be deemed
approved by Landlord.

 

Landlord shall
defend, indemnify and save harmless Tenant, its agents and employees from and
against any and all liabilities, obligations, damages, penalties, claims,
costs, charges and expenses, including reasonable attorneys’ fees, which may be
imposed or incurred by or asserted against Tenant and/or its agents or
employees by reason of any of the following occurring during the term, (i) any
work done in, on or about the Demised Premises by or at the instance of
Landlord, or its invitees, (ii) any negligent or wrongful act or omission
on the part of Landlord or its invitees in the common areas of the Building or
Real Property, (iii) any accident, injury or damage to any person or property
occurring in, on or about the common areas of the Building or Real Property
caused by the negligence of Landlord or its invitees, and (iv) any failure
by Landlord to perform or comply with any of the covenants, agreements, terms,
provisions, conditions or limitations in this lease to be performed or complied
with by Landlord.  If any action or
proceeding is brought against Tenant by reason of any such claim, Landlord
shall, upon the request of Tenant and at Landlord’s expense, resist or defend
such action or proceeding.

 

29.03. Exculpation.

 

Tenant shall look
solely to the estate and interest of Landlord, its successors and assigns, in
the Real Property (including rents,
profits and proceeds thereof) for the collection of any judgment (or
other judicial process) recovered against Landlord based upon the breach by
Landlord of any of the terms, conditions or covenants of this lease on the part
of Landlord to be performed, and no other property or assets of Landlord shall
be subject to levy, execution or other enforcement procedures for the
satisfaction of Tenant’s remedies under or with respect to either this lease,
the relationship of landlord and tenant hereunder, or Tenant’s use and
occupancy of the Demised Premises.

 

ARTICLE 30

 

Destruction or Damage

 

30.01. Notice and Repair Obligation.

 

Tenant shall give prompt notice to Landlord in case
of fire or other casualty in or about the Demised Premises.  If the Demised Premises and/or access thereto
shall be partially or totally damaged or destroyed by fire or other casualty,
then, Landlord shall, subject to its rights as set forth in Section 30.03,
repair the damage and restore and rebuild the Demised Premises and/or access
thereto as nearly as may be reasonably practical to its condition and character
immediately prior to such damage or destruction, with reasonable diligence
after notice to it of the damage or destruction, which repair and restoration
shall be limited to the extent of insurance proceeds received, subject to
unavoidable delays and delays in the adjustment of insurance claims.   In no event shall Landlord be required to
repair or replace Tenant’s furnishings, decorations and other moveable items in
the Premises, or personal property of any type belonging to Tenant.  Unless Landlord shall terminate this lease in
accordance with Section 30.03, Tenant shall cooperate with 

 

45

 

Landlord’s restoration by removing from the Premises as promptly as
possible, all of Tenant’s salvageable inventory and movable equipment,
furniture and other property.

 

30.02.  Abatement of Rent.

 

If the Demised Premises and/or access thereto shall be
partially or totally damaged or destroyed by fire or other casualty, the rents
payable hereunder shall be abated to the extent that the Demised Premises shall
have been rendered untenantable, from the date of such damage or destruction to
the date the damage shall be substantially repaired, provided, however, if the
portion of the Demised premises used for laboratory or manufacturing is
rendered untenantable, then the entire Demised Premises shall be deemed
untenantable (provided Tenant is not occupying such space) and the  rents payable for the entire Demised Premises
hereunder shall be abated.  Should Tenant
reoccupy a portion of the Demised Premises and operate therein during the
period that the repair is in progress and prior to the date that the same are
made completely tenantable, rents allocable to such portion shall be payable by
Tenant from the date of such occupancy to the date the Demised Premises are
made tenantable.

 

30.03.  Termination Rights.

 

In case the Demised Premises shall be rendered wholly
unusable by reason of fire or other casualty or if the Building shall be so
damaged by fire or other casualty that substantial renovation, reconstruction
or demolition of the Building shall, in Landlord’s opinion, be required
(whether or not the Demised Premises shall have been damaged by such fire or
other casualty), or in the event Landlord’s mortgagee(s) shall make claim
to the proceeds of the casualty insurance maintained by Landlord, then Landlord
may, at its option, terminate this lease and the term and estate hereby
granted, by notifying Tenant of such termination, within 120 days after the
date of such damage; such termination date shall be not more than 60 days after
the giving of such notice.  If at any
time prior to Landlord giving Tenant the aforesaid notice of termination or
commencing the repair and restoration pursuant to Section 30.01, the
holder of a mortgage or the lessor of a superior lease or any person claiming
under or through the holder of such mortgage or the lessor of such lease takes
possession of the Building through foreclosure or otherwise, such holder or
lessor shall have a further period of 60 days from the date of taking
possession to terminate this lease by appropriate notice to Tenant.  Nothing contained in this Section shall
relieve Landlord or Tenant from any liability to the other  in connection with any damage to the Demised
Premises or the Building by fire or other casualty if such party shall be
legally liable in such respect.

 

In case the Demised Premises shall be rendered wholly
unusable by reason of fire or other casualty, Tenant, as its sole remedy, may
cancel this lease by written notice to Landlord, if (i) within 60 days
from the date of the damage or destruction, Landlord does not deliver to Tenant
a written certification to the effect that the restoration can be completed
within 270 days from the date of the casualty, or (ii)  within 270 days
from the date of the damage or destruction, Landlord does not repair and
restore the Demised Premises; provided that Tenant shall not be entitled to
cancel this lease pursuant to clause (i) of this sentence more than 10
days after Landlord shall have given written notice to Tenant or pursuant to
clause (ii) more than 280 days from the date of the damage or
destruction.  The period for the
completion of the required repairs and restoration work (and for the giving of
Tenant’s notice of cancellation) shall be extended by the number of days lost
in the event such loss results from unavoidable delays, or any cause beyond the
reasonable control of Landlord.

 

30.04.
Termination Upon Casualty.

 

In the event of the termination of this lease pursuant
to the provisions of this Article, this lease shall expire as fully and
completely on the date fixed in such notice of termination as if that were the
date definitely fixed for the expiration of this lease, and Tenant shall
forthwith quit, surrender and vacate the Premises without prejudice, however,
to Landlord’s rights and remedies 

 

46

 

against Tenant under the lease provisions in effect
prior to such termination.  Any rent
owing shall be paid up to such date, and any payments of rent made by Tenant
which were on account of any period subsequent to such date shall be returned
to Tenant.

 

30.05.
Non-Liability of Landlord.

 

No damages, compensation or claim shall be payable by
Landlord for inconvenience, loss of business or annoyance arising from any
repair or restoration of any portion of the Demised Premises or of the Building
pursuant to this Article. Landlord shall use its best efforts to effect such
repair or restoration promptly and in such manner as not to interfere
unreasonably with Tenant’s use and occupancy.

 

30.06.  Insurance on Tenant’s Property.

 

Landlord will not carry insurance of any kind on
Tenant’s Property or on any work in excess of building standard work and shall
not be obligated to repair any damage thereto or replace the same.  For purposes of this Article the term
casualty damage, to the extent Landlord is responsible under this Article,
shall not be deemed to include damage caused by vandalism, unknown cause or
other act not normally covered under fire and extended coverage insurance
policies applicable to office buildings in the Town of Orangeburg.

 

30.07.
Waiver of Statutory Protection.

 

The provisions of this Article shall be
considered an express agreement governing any case of damage or destruction of
the Demised Premises by fire or other casualty, and Section 227 of the
Real Property Law, providing for such a contingency in the absence of an
express agreement, and any other law of like import, now or hereafter in force,
shall have no application in such case.

 

ARTICLE 31

 

Condemnation

 

31.01.  Landlord’s Rights to Award.

 

In the event that the Real Property or any part
thereof, shall be taken in condemnation proceedings or by the exercise or any
right of eminent domain or by agreement between any superior lessors and
lessees and/or Landlord on the one hand and any governmental authority
authorized to exercise such right on the other hand (collectively a “taking”),
Landlord shall be entitled to collect from the condemnor the entire award or
awards that may be made in any such proceeding without deduction therefrom for
any estate hereby vested in or owned by Tenant. 
Tenant hereby expressly assigns to Landlord all of its right, title and
interest in or to every such award and also agrees to execute any and all
further documents that may be required in order to facilitate the collection
thereof by Landlord.

 

31.02.  Full Taking.

 

If title to the whole or substantially all of the Real
Property shall be subject to a taking, this lease shall terminate and expire on
the date of such taking and the fixed rent and additional rent provided to be
paid by Tenant shall be apportioned and paid to the date of such taking.

 

47

 

31.03.  Partial Taking.

 

If substantially all of the Real Property is not so
taken and if only a part of the Demised Premises shall be so taken, this lease
nevertheless shall continue in full force and effect, except that either party
may elect to terminate this lease, if that portion of the Demised Premises then
occupied by Tenant shall be reduced by more than 25%, or Tenant may elect to
terminate this lease if the portion taken is either the laboratory or the
manufacturing portion of the Demised Premises, by notice of such election to
the other party given not later than 30 days after (i) notice of such
taking is given by the condemning authority, or (ii) the date of such
taking, whichever occurs later.  Upon the
giving of such notice this lease shall terminate on the date of service of such
notice and the fixed rent and additional rent due and to become due, shall be
prorated and adjusted as of the date of the taking.  If both parties fail to give such notice upon
such partial taking, and this lease continues in force as to any part of the
Demised Premises not taken,  (x) the
rents apportioned to the part taken shall be prorated and adjusted as of the
date of taking and from such date the fixed rent and additional rent shall be
reduced to the amount apportioned to the remainder of the Demised Premises, (y) the
number of parking spaces allocated to Tenant pursuant to Section 9.01
shall be proportionately reduced and (z) the Tenant’s Proportionate Share
shall be recomputed to reflect the number of square feet of Tenant’s Rentable
Area remaining in the Demised Premises in relation to the Rentable Area
remaining in the Real Property.

 

31.04.  Tenant’s Rights to Award.

 

Tenant shall not
be entitled to appear, claim, prove or receive any award in the proceedings
relating to any taking mentioned in this Article. Notwithstanding anything to the contrary herein, in connection with any
acquisition by eminent domain of the Demised Premises or any portion thereof, Tenant may seek to recover from the
condemning authority:  (i) for
moving expenses; (ii) an award for damages and/or for the taking of
fixtures and equipment installed by or for Tenant in the Premises at Tenant’s
expense; and (iii) any other award(s) which the condemning authority
may allow to Tenant resulting from any such acquisition, provided that Landlord’s
award is not diminished thereby.

 

31.05.  Reconstruction.

 

In the event of any taking which does not result in a
termination of this lease, Landlord, at its expense, shall proceed with
reasonable diligence to repair the remaining part of the Building and the
Demised Premises to substantially the same condition as it was in immediately
prior to such taking to the extent that the same may be feasible (as though same was a casualty under Article 30),
so as to constitute a tenantable Building and Demised Premises, provided that
Landlord’s liability under this Section shall be limited to the amount
received by Landlord as an award arising out of such taking, and Landlord shall
have no liability or responsibility to repair Tenant’s Property.

 

ARTICLE 32

 

Surrender and Holdover

 

32.01.
Surrender.

 

On the
Expiration Date, or upon any earlier termination of the term of this lease,
Tenant shall quit and surrender the Demised Premises to Landlord in good order,
condition and repair, 

 

48

 

except for ordinary wear and tear,
damage or destruction by fire or other casualty or the elements, and Tenant
shall remove all of Tenant’s Property therefrom except as otherwise expressly
provided in this lease.

 

32.02.
Holdover.

 

Tenant acknowledges that possession of the Demised
Premises must be surrendered to Landlord at the expiration or sooner
termination of the term of this lease. 
If Tenant fails to surrender the Demised Premises within thirty (30)
days of the expiration or sooner termination of the term of this lease, Tenant
agrees it shall indemnify and save Landlord harmless against all liabilities,
obligations, damages, penalties, claims, costs, charges and expenses, including
reasonable attorneys’ fees, incurred by Landlord resulting from delay by Tenant
in so surrendering the Demised Premises, including, without limitation,
penalties under any lease with a succeeding tenant  and any claims made by any succeeding tenant
founded on such delay.  The parties
recognize and agree that the damage to Landlord resulting from any failure by
Tenant to surrender possession of the Demised Premises on a timely basis as
aforesaid will be extremely substantial, will exceed the amount of fixed rent
and additional rent theretofore payable hereunder and will be impossible of
accurate measurement.  Tenant, therefore,
agrees that if possession of the Demised Premises is not surrendered to
Landlord on the date of expiration or sooner termination of the term of this
lease, then Tenant agrees to pay to Landlord as liquidated damages for each
month and for any portion of a month during which Tenant holds over in the
Demised Premises after expiration or termination of the term of this lease, a
sum equal to 150% of the average fixed rent and additional rent which was
payable per month under this lease during the last 3 months of the term hereof
for the first month and 200% of the average fixed rent and additional rent
which was payable per month under this lease during the last 3 months of the
term hereof for each month and for any portion of a month thereafter.  Such liquidated damages shall not limit
Tenant’s indemnification obligation with respect to claims made by any
succeeding tenant founded upon Tenant’s failure or refusal to surrender the Premises
to Landlord at the expiration or sooner termination of the term of this
lease.  Nothing contained herein shall be
deemed to authorize Tenant to remain in occupancy of the Demised Premises after
the expiration or termination of the term of this lease.

 

ARTICLE 33

 

Conditions of Limitation

 

33.01.  Prior to Term.

 

If at or before
the commencement of the term of this lease:

 

(a)           Tenant
shall file a petition commencing a voluntary case under the Bankruptcy Code
(Title 11 of the United States Code), as now or hereafter in effect, or under
similar law, or file a petition in bankruptcy or for reorganization or for an
arrangement pursuant to any state insolvency law or any similar state law;

 

(b)           An
involuntary case against Tenant as debtor is commenced by a petition under the
Bankruptcy Code (Title 11 of the United States Code), as now or hereafter in
effect, or under similar law, or a petition or answer proposing the
adjudication of Tenant as a bankrupt or its reorganization pursuant to any
state insolvency law or any similar state law shall be filed in any court and
shall not be dismissed, discharged or denied within 90 days after the filing
thereof, or if Tenant shall consent or acquiesce in the filing thereof;

 

(c)           A
custodian, receiver, United States Trustee, trustee or liquidator of Tenant or
of all or substantially all of Tenant’s property or of the Demised Premises
shall be appointed in any proceedings brought by Tenant; or if any such
custodian, receiver, United 

 

49

 

States Trustee,
trustee or liquidator shall be appointed in any proceedings brought against
Tenant and shall not be discharged within 90 days after such appointment or if
Tenant shall consent to or acquiesce in such appointment; or

 

(d)           If
Tenant shall generally not pay Tenant’s debts as such debts become due, or
shall make an assignment for the benefit of creditors, or shall admit in
writing its inability to pay its debts generally as they become due;

 

this agreement shall be
deemed cancelled and terminated, in which event neither Tenant nor any person
claiming through or under Tenant or by virtue of any statute or of an order of
any court shall be entitled to possession of the Demised Premises, but Tenant
shall remain liable for damages as provided in Article 35.

 

33.02.
During Term.

 

(a)           If
any of the events set forth in Section 33.01 occurs during the term of
this lease, such term, at the option of Landlord, exercised within a reasonable
time after notice of the happening of any one or more of such events, shall
terminate on such date as Landlord shall specify by notice to Tenant, with the
same effect as if the date of termination were the Expiration Date, but Tenant
shall remain liable for damages as provided in Article 35.

 

(b)           The
term of this lease is subject to the further limitation that:

 

(i)            Whenever Tenant shall
default in the payment of any installment of rent or any other charge payable
by Tenant to Landlord, on any day upon which the same is due, and such default
shall continue for 5 days after Landlord shall have given to Tenant a notice
specifying such default;

 

(ii)           Whenever Tenant shall
do, or permit to be done, whether by action or inaction, anything contrary to
any of Tenant’s obligations hereunder, and if such situation shall continue and
shall not be remedied by Tenant within 30 days after Landlord shall have given
to Tenant a notice specifying the same, or, in the case of a situation which
cannot with due diligence be cured within a period of 30 days, if Tenant shall
not (y) within said 30-day period advise Landlord of Tenant’s intention
duly to institute all steps necessary to remedy such situation, and (z) duly
institute within said 30-day period, and thereafter diligently prosecute to
completion, all steps necessary to remedy the same;

 

(iii)          Whenever Tenant shall
desert and abandon the Demised Premises (whether the keys be surrendered or not
and whether the rent be paid or not);

 

then in any of said cases
set forth in the foregoing subparagraphs (i) through (iii), Landlord may
give to Tenant a notice of intention to end the term of this lease at the
expiration of 5 days from the date of service of such notice of intention, and
upon the expiration of said 5 days the term and estate hereby granted, whether
or not the term shall theretofore have commenced, shall expire and terminate
with the same effects as if the date of termination were the Expiration Date,
but Tenant shall remain liable for damages as provided in Article 35.

 

33.03.
Adequate Assurances.

 

Without limiting
any of the provisions of Articles 33, 34 or 35, if pursuant to the Bankruptcy
Code of 1978, as the same may be amended, Tenant is permitted to assign this
lease in disregard of the obligations contained in Article 13 hereof,
Tenant agrees that adequate assurance of future performance by the assignee
permitted under such Code shall mean the deposit of cash security with Landlord
in an amount equal to the sum of six month’s fixed rent then reserved hereunder
plus an amount equal to all additional rent payable under this lease for the
six months preceding the year in which such assignment is intended to become
effective, which deposit shall be 

 

50

 

held by Landlord, for the
balance of the term of this lease as security for the full and faithful
performance of all of the obligations under this lease on the part of Tenant
yet to be performed.  If Tenant receives
or is to receive any valuable consideration for such an assignment of this
lease, such consideration after deducting therefrom (i) the brokerage
commissions, if any, and other expenses reasonably incurred by Tenant for such
assignment and (ii) any portion of such consideration reasonably
designated by the assigned as paid for the purchase of Tenant’s property in the
Demised Premises, shall be the sole and exclusive property of Landlord and
shall be paid over to Landlord directly by such assignee.

 

ARTICLE 34

 

Re-Entry by Landlord

 

34.01.
Re-Entry; Summary Proceedings.

 

If Tenant shall
default in the payment of any installment of rent or any other charge payable
by Tenant to Landlord, on any day upon which the same is due, and if such
default shall continue for 5 days after Landlord shall have given to Tenant a
notice specifying such default, or if the term of this lease shall be
terminated as in Article 33 provided, Landlord or Landlord’s agents and
employees may immediately or at any time thereafter re-enter the Demised
Premises, or any part thereof, either by summary dispossess proceedings or by
any suitable action or proceeding at law, or otherwise, without being liable to
indictment, prosecution or damages therefor, other than willful misconduct, and
may repossess the same, and may remove any persons therefrom, to the end that
Landlord may have, hold and enjoy the Demised Premises again as and of its fee
estate and interest therein.  The word “re-enter”,
as herein used, is not restricted to its technical legal meaning.  In the event of any termination of the term
of this lease under the provisions of Article 33 or if Landlord shall
re-enter the Demised Premises under the provisions of this Article or in
the event of the termination of the term of this lease, or of re-entry, by or
under any summary dispossess or other proceeding or action of any provision of
law by reason of default hereunder on the part of Tenant, Tenant shall
thereupon pay to Landlord the rent and any other charge payable by Tenant to
Landlord up to the time of such termination or re-entry, as the case may be,
and shall also pay to Landlord damages as provided in Article 35.

 

34.02.
Remedies Cumulative.

 

The remedies to
which Landlord or Tenant may resort hereunder are cumulative and are not
intended to be exclusive of any other remedies or means of redress to which
Landlord may lawfully be entitled at any time, and Landlord or Tenant may
invoke any remedy allowed at law or in equity as if specific remedies were not
provided for herein.

 

34.03.
Retention of Funds.

 

If the term of
this lease shall be terminated under the provisions of Article 33, or if
Landlord shall re-enter the Demised Premises under the provisions of this
Article, or in the event of the termination of the term of this lease, or of
re-entry, by or under any summary dispossess or other proceeding or action or
any provision of law by reason of default hereunder on the part of Tenant,
Landlord shall be entitled to retain all moneys, if any, paid by Tenant to
Landlord, whether as advance rent, security or otherwise, but such moneys shall
be credited by Landlord against any rent or other charge due from Tenant at the
time of such termination or re-entry or, at Landlord’s option, against any
damages payable by Tenant under Article 33 or pursuant to law.

 

51

 

ARTICLE 35

 

Damages

 

35.01.
Damages.

 

Tenant covenants
and agrees that if the term of this lease shall be terminated under the
provisions of Article 33, or if Landlord shall re-enter the Demised
Premises under the provisions of Article 34, or in the event of the
termination of the term of this lease, or of re-entry, by or under any summary
dispossess or other proceeding or action or any provision of law by reason of
default hereunder on the part of Tenant, Tenant shall pay to Landlord as
damages, at the election of Landlord, either:

 

(a)           A
sum which at the time of such termination or at the time of such re-entry by
Landlord, as the case may be, represents the then value of the excess, if any,
of:

 

(i)            the
aggregate of the rent payable hereunder which would have been payable by Tenant
(conclusively presuming the additional rent to be the same as was payable for
the year immediately preceding such termination or re-entry) for the period
commencing with the date of such termination or re-entry, as the case may be,
and ending with the Expiration Date, had the term of this lease not been so
terminated or had Landlord not so re-entered the Demised Premises, over

 

(ii)           the
aggregate rental value of the Demised Premises for the same period; both
discounted to the date of such termination or re-entry, as the case may be, at
the rate of 10% per annum compounded quarterly; or

 

(b)           Sums
equal to the rent payable hereunder which would have been payable by Tenant had
the term of this Lease not been so terminated, or had Landlord not so
re-entered the Demised Premises, payable upon the due dates therefor specified
herein following such termination or such re-entry and until the Expiration
Date.  Landlord may re-let the Demised
Premises or any part or parts thereof, either in the name of Landlord or
otherwise, for a term or terms, which may at Landlord option be less than or
exceed the period which would otherwise have constituted the balance of the
term of this Lease.  Landlord may grant
concessions of free rent and Landlord, at its option, may make such alterations
and decorations in the Demised Premises as Landlord considers advisable and
necessary for the purpose of re-letting the Demised Premises, and the granting
of such concessions and/or making of such alterations and decorations shall not
operate or be construed to release Tenant from liability hereunder as
aforesaid; provided, that if Landlord shall re-let the Demised Premises during
said period, Landlord shall credit Tenant with the net rents received by
Landlord from such re-letting, such net rents to be determined by first
deducting from the gross rents as and when received by Landlord from such
re-letting, the expense incurred or paid by Landlord in terminating the term of
this lease and in re-entering the Demised Premises and in securing possession thereof,
as well as the expenses of re-letting, including altering and preparing the
Demised Premises for new tenants, brokers’ commissions, attorneys’ fees and all
other expenses properly chargeable against the Demised Premises and the rental
therefrom; it being understood that any such re-letting may be for a period
shorter or longer than the remaining term of this lease; but in no event shall
Tenant be entitled to receive any excess of such net rents over the sums
payable by Tenant to Landlord hereunder, or shall Tenant be entitled in any
suit for the collection of damages pursuant to this Article to a credit in
respect of any net rents from a re-letting, except to the extent that such net
rents are actually received by Landlord. 
If the Demised Premises or any part thereof should be re-let in
combination with other space, then proper apportionment on a square foot basis
shall be made of the rent received from such re-letting and of the expenses of
re-letting.

 

52

 

(c)           In
the event of a default by Tenant in its obligations under this lease, beyond
applicable grace periods, if any, resulting in the termination of this lease,
in addition to Landlord’s other rights and remedies, there shall be immediately
payable by Tenant to Landlord, as additional rent, the unamortized amount of
all of the following which are incurred, granted or assumed by Landlord in
connection with the lease:  all rent
concessions; free rent; rent credits, contributions or payments by Landlord with
respect to work or improvements performed in the Demised Premises; and/or
obligations expenses and liabilities of Tenant assumed or paid for by Landlord
in consideration of Tenant’s entering into this lease.

 

35.02.
Recovery of Damages.

 

Suit or suits for
the recovery of such damages, or any installments thereof, may be brought by
Landlord from time to time at its election, and nothing contained herein shall
be deemed to require Landlord to postpone suit until the date when the term of
this lease would have expired if it had not been terminated under the
provisions of Article 33, or under any provision of law, or had Landlord
not re-entered the Demised Premises.

 

35.03.
Additional Damages.

 

Nothing herein
contained shall be construed as limiting or precluding the recovery by either
party of any sums or damages, in which, in addition to the damages particularly
provided above, to which Landlord or Tenant may lawfully be entitled by reason
of any default hereunder on the part of 
the other party.

 

ARTICLE 36

 

Waivers

 

36.01.
Waiver of Redemption Rights.

 

Tenant, for
Tenant, and on behalf of any and all persons claiming through or under Tenant,
including creditors of all kinds, does hereby waive and surrender all right and
privilege which it or any party claiming
through or under Tenant  might
have under or by reason of any present or future law, to redeem the Demised
Premises or to have a continuance of this lease for the term hereby demised
after being dispossessed or ejected therefrom by process of law or under the
terms of this lease or after the termination of the term of this lease as
herein provided.  Tenant also waives the
provisions of any law now or hereafter in effect relating to notice and delay
in levy of execution in case of an eviction or dispossess of a tenant for
non-payment of rent.

 

36.02.
No Designation of Payments.

 

Tenant waives
Tenant’s right, if any, to designate the items against which any payments made
by Tenant are to be credited, and Tenant agrees that Landlord may apply any
payments made by Tenant to any items it sees fit, irrespective of and
notwithstanding any designation or request by Tenant as to the items against
which any such payments shall be credited.

 

36.03.
Waiver of Jury Trial.

 

Landlord and
Tenant shall and hereby do waive trial by jury in any action, proceeding or
counterclaim brought by either against the other on any matter whatsoever
arising out of or in any 

 

53

 

way connected with this
lease, the relationship of landlord and tenant, Tenant’s use or occupancy of
the Demised Premises, any claim of injury or damage, or any emergency statutory
or any other statutory remedy.

 

ARTICLE 37

 

Unperformed Covenants

 

37.01.
Performance of Tenant’s Obligations.

 

If Tenant shall default in the performance of any of
Tenant’s obligations hereunder, Landlord, without thereby waiving such default,
may at Landlord’s option, after reasonable notice to Tenant, perform the same
for the account of Tenant.  If Landlord
makes any expenditures or incurs any obligations for the payment of money,
including attorneys’ fees in instituting, prosecuting or defending any action
or proceeding by reason of any default of Tenant hereunder, such sums paid or
obligations incurred, with interest at the maximum legal rate thereon, shall be
deemed to be additional rent hereunder and shall be paid by Tenant to Landlord
upon rendition of any bill or statement to Tenant therefore.

 

In the event Tenant is
obligated (whether pursuant to this Lease, by law or otherwise) to pay or
reimburse Landlord for counsel or attorneys’ fees, or other costs,
disbursements, fees, expenditures, charges or expenses, it shall be deemed that
Tenant shall only be obligated to pay or reimburse Landlord for Landlord’s
reasonable counsel or attorneys’ fees, and actual, out-of-pocket reasonable
costs, disbursements, fees, expenditures, charges or expenses, respectively, as
the case may be.

 

Landlord agrees not to
expend any money on Tenant’s behalf or incur any obligation on Tenant’s behalf,
unless Tenant shall have received written notice from Landlord, specifying the
nature and amount of the intended expenditure or the nature of the intended
obligation and, within thirty (30) days from the receipt of such notice, Tenant shall not have obviated the
necessity for such expenditure or obligation by Landlord.

 

ARTICLE 38

 

Consents and Approvals

 

38.01.
Consents and Approvals.

 

Whenever in this
lease it is provided that Landlord shall not unreasonably withhold or delay
consent or approval or shall exercise its judgment reasonably (such consent or
approval and such exercise of judgment being collectively referred to as “consent”),
if Landlord shall delay or refuse such consent, Tenant in no event shall be
entitled to make, nor shall Tenant make, any claim, and Tenant hereby waives
any claim, for money damages (nor shall Tenant claim any money damage by way of
setoff, counterclaim or defense) based upon any claim or assertion by Tenant
that Landlord unreasonably withheld or unreasonably delayed its consent.  Tenant’s sole remedy shall be an action or
proceeding for specific performance, injunction or declaratory judgment to
enforce any such provision, but any such equitable remedy which can be cured by
the expenditure of money may be enforced personally against Landlord only to
the extent of interest in the Building. 
Failure on the part of Tenant to seek such relief within 90 days after
the date upon which Landlord has withheld its consent shall preclude any right
to dispute the reasonableness of such withholding of consent. The parties agree
that the question of Landlord’s reasonableness may be submitted to arbitration
at the office of the American Arbitration Association nearest the Building in
accordance with the rules for expedited arbitration of the American
Arbitration Association.

 

54

 

38.02. Expenses.

 

If Tenant shall
request the consent or approval of Landlord to the making of any alterations or
to any other thing, and Landlord shall seek and pay a separate fee for the
expert opinion of Landlord’s architect or engineer, Tenant shall pay to
Landlord, as additional rent, within 30 days after demand, accompanied by supporting documentation,  all reasonable costs and expenses
of Landlord incurred in reviewing plans and specifications.

 

ARTICLE 39

 

Rules and Regulations

 

39.01. Rules and Regulations.

 

Tenant and Tenant’s invitees shall observe and comply
with the Rules and Regulations attached hereto and made part hereof, and
such other and further reasonable Rules and Regulations as Landlord or
Landlord’s agents or the maintenance association (of which Landlord is a member
and which relates to the operation and maintenance of the Park, if applicable)
may from time to time adopt.  Notice of
any additional Rules and Regulations shall be given to Tenant.  Nothing in this lease contained shall be
construed to impose upon Landlord any duty or obligation to enforce the Rules and
Regulations or the terms, covenants or conditions in any other lease, against
any other tenant or occupant of the Building or the Park, if applicable, and
Landlord shall not be liable to Tenant for violation of the same by any other
tenant, its servants, employees, agents, visitors, licensees, contractors,
subcontractors or invitees.  In the event
of a conflict between the Rules and Regulations and the provisions of the
lease, the provisions of the lease shall prevail. Any rules and regulations promulgated by Landlord shall be uniformly
enforced against all the tenants in the Office Building Space in a
non-discriminatory manner.

 

ARTICLE 40

 

Amendments for Financing

 

40.01. Amendments for Financing.

 

If, in connection with obtaining financing for the
Real Property, a banking, insurance or other recognized institutional lender
shall request commercially  reasonable modifications in this lease
as a condition to such financing, Tenant will not withhold, delay or defer its
consent thereto, provided that such modifications do not increase the monetary
obligations of Tenant hereunder,
decrease its rights or impose additional material obligations on Tenant  and are in a form and substance reasonably
satisfactory to Tenant.

 

ARTICLE 41

 

Notice to Mortgagees and Underlying Lessors

 

41.01. Notice to Mortgagees and Lessors.

 

Upon the occurrence of any act or omission on the part
of Landlord which would give Tenant the right, either immediately or after the
lapse of a period of time, to terminate this lease or

 

55

 

the
term hereof or to claim a partial or total eviction, Tenant shall not exercise
such right until (i) it has given notice of the occurrence of such act or
omission to holders of any mortgages which at the time shall be liens on the
leasehold estate under any ground lease or the Real Property, and the lessors
under all underlying leases, if the names and addresses of such holders and
lessors shall previously have been furnished to Tenant, and (ii) a period
of time has elapsed after such notice as shall equal the greater of (y) twice
the length of time to which Landlord would be entitled under this lease or
otherwise, after similar notice, to remedy such act or omission, or (z) the
same time to which Landlord would be so entitled, plus the time reasonably
required to enable the holder of such mortgage or lease to become legally
entitled (through receivership or otherwise) to remedy such act or omission.

 

ARTICLE 42

 

Parties Bound; Partnership Tenant

 

42.01. Successors and Assigns.

 

The covenants, agreements, terms, provisions and
conditions of this lease shall bind and benefit the successors and assigns of
the parties hereto with the same effect as if mentioned in each instance where
a party hereto is named or referred to, except that no violation of the
provisions of Article 13 shall operate to vest any rights under this lease
in any successor or assignee of Tenant. 
It is understood and agreed, however, that (i) the covenants and
obligations on the part of Landlord under this lease shall not be binding upon
Landlord herein named with respect to any period subsequent to the transfer of
its interest in the Real Property as owner or lessee thereof, provided such
successor or transferee assumes the obligations in writing, (ii) in
the event of such transfer said covenants and obligations shall thereafter be
binding upon each transferee of the interest of Landlord herein named as such
owner or lessee of the Real Property, but only with respect to the period
ending with a subsequent transfer of such interest, and (iii) a lease of
the entire interest of Landlord hereunder shall be deemed a transfer within the
meaning of this Article.

 

42.02. Partnership Tenant.

 

If Tenant’s interest in this lease shall at any time
be held by a partnership, or by 2 or more persons individually (any such
partnership and such persons are referred to in this Section as “Partnership
Tenant”), the following provisions shall apply to such Partnership Tenant:

 

(a)           The liability of each of the parties comprising
Partnership Tenant shall be joint and several;

 

(b)           Each of the parties comprising
Partnership Tenant thereby consents in advance to, and agrees to be bound by, any
(i) written instrument which may thereafter be executed, changing,
modifying or discharging this lease, in whole or in part, or surrendering all
or any part of the Demised Premises to Landlord, and (ii) notices,
demands, requests or other communications which may thereafter be given, by
Partnership Tenant or any of the parties comprising Partnership Tenant;

 

(c)           Any bills, statements, notices, demands,
requests or other communications given or rendered to Partnership Tenant, or to
any of the parties comprising Partnership Tenant, shall be deemed given or
rendered to Partnership Tenant and to all such parties and shall be binding
upon Partnership Tenant and all such parties;

 

(d)           If Partnership Tenant shall admit new
partners, all of such new partners shall by their admission to Partnership
Tenant, be deemed to have assumed performance of all of the terms, covenants
and conditions of this lease on Tenant’s part to be observed and performed; and

 

56

 

(e)           Partnership Tenant shall give prompt
notice to Landlord of the admission of each such new partner, and upon demand
of Landlord, shall cause each such new partner to execute and deliver to
Landlord an agreement in form satisfactory to Landlord, wherein each such new
partner shall assume performance of all of the terms, covenants and conditions
of this lease on Tenant’s part to be observed and performed (but neither
Landlord’s failure to request any such agreement nor the failure of any such
partner to execute or deliver any such agreement to Landlord shall vitiate the
provisions of subparagraph (d) of this Section).

 

Landlord shall
release from liability hereunder, as to obligations thereafter accruing,
retiring partners and the estates of deceased partners, provided that the
aggregate assets of the remaining partners of a Partnership Tenant shall be
sufficient in Landlord’s reasonable judgment to meet Tenant’s obligations
hereunder.

 

The provisions of
this Section shall not be deemed to constitute a consent, by Landlord, to
the assignment of any interest in this lease by Tenant.

 

ARTICLE 43

 

No Other Waivers or Modifications

 

43.01. Waivers.

 

The failure of
Landlord or Tenant to insist in any one or more instances upon the strict
performance or observance of any one or more of the obligations of this lease,
or to exercise any election herein contained, shall not be construed as a
waiver or relinquishment for the future of the performance of such one or more
obligations of this lease or of the right to exercise such election, but the
same shall continue and remain in full force and effect with respect to any
subsequent breach, act or omission.  No
executory agreement hereafter made between Landlord and Tenant shall be
effective to change, modify, waive, release, discharge, terminate or effect an
abandonment of this lease, in whole or in part, unless such executory agreement
is in writing and is signed by the party against whom enforcement of the
change, modification, waiver, release, discharge or termination or effectuation
of the abandonment is sought.

 

43.02. Surrender; Payments.

 

Without limiting
the generality of the foregoing provisions of this Article:

 

(a)           No agreement to accept a surrender of all
or any part of the Demised Premises shall be valid unless in writing, signed by
Landlord.  The delivery of keys to the
Demised Premises to an employee of Landlord or of its agent shall not operate
as a termination of the term of this lease or a surrender of the Demised
Premises.

 

(b)           The receipt by Landlord or Tenant, or the
payment by Tenant or Landlord, of rent or any other payment with knowledge of
breach of any obligation of this lease shall not be deemed a waiver of such
breach.

 

(c)           No payment by Tenant or Landlord or
receipt by Landlord or Tenant of a lesser amount than the correct amount of any
rent or other charge due hereunder shall be deemed to be other than a payment
on account; nor shall any endorsement or statement on any check or any letter
accompanying any check or payment be deemed an accord and satisfaction, and
Landlord and Tenant may accept such check or payment without prejudice to
Landlord’s right to recover the balance or pursue any other remedy in this
lease or at law provided.

 

57

 

ARTICLE 44

 

Notices

 

44.01. Notices.

 

Except for rent
bills, any notice, request, approval, consent, bill, statement or other
communication required or permitted to be given, rendered or made by either
party hereto to the other, pursuant to this lease or pursuant to any applicable
law or requirement of public authority, shall be in writing (shall be sent in
duplicate to Landlord) and shall be delivered by registered or certified mail,
addressed to the other party at the address hereinabove set forth (in the case
of notice to Landlord, one copy to be addressed to the attention of Executive
Vice President of Leasing and one copy to be addressed to the attention of
General Counsel) and shall be deemed to have been given, rendered, made or (in
the case of any communication required by the provisions of this lease to have
been received before any period prescribed herein for the taking of any action
or the creation of any rights shall commence) received, on the second business
day following the day so mailed if mailed in Rockland County and the third
business day following the day so mailed if mailed outside of Rockland
County.  Any notices, approvals,
consents, bills, statements or other communication given pursuant to this Article by
either party may be given by such party, their agents or attorneys.  Either party may, by notice as aforesaid,
designate a different address or addresses for notices, bills, statements or
other communications intended for it.

 

Landlord shall send a copy
of all default notices to Tenant to the attorneys for Tenant at the following
address, provided, however, the failure to deliver any notice to Tenant’s
attorneys shall not negate a notice otherwise properly sent to Tenant:

 

Cole,
Schotz, Meisel, Forman & Leonard, P.A.

Court Plaza North

25 Main Street

P.O. Box 800

Hackensack, New Jersey
07602-0800

Attention: Marc Press, Esq.

 

ARTICLE 45

 

Estoppel Certificate-Recording

 

45.01. Tenant’s Estoppel.

 

Tenant agrees, at
any time and from time to time, upon 10 days prior notice from Landlord, to
execute, acknowledge and deliver to Landlord and any other person designated by
Landlord, a statement in writing stating (i) that this lease is unmodified
and in full force and effect (or if there have been modifications, that the
lease is in full force and effect as modified and stating the modifications), (ii) the
dates to which the fixed rent, additional rent and other charges, if any have
been paid by Tenant, (iii) whether or not, to the best knowledge of
Tenant, Landlord is in default in the performance of any covenant, agreement or
condition contained in this lease and, if so, specifying in detail each such
default of which Tenant may have knowledge, and (iv) the address to which
notices to Tenant should be sent.  If
requested by Landlord, the form of statement shall be, at Landlord’s election,
as set forth on Exhibit B, annexed hereto and made part
hereof.  Any such statement delivered
pursuant hereto may be relied upon by the holder of any interest in the Real
Property, any prospective purchaser of the Real Property, any mortgagee or
prospective mortgagee

 

58

 

of the Real Property or
of Landlord’s interest, or any prospective assignee of any such mortgage.

 

45.02. Landlord’s Estoppel.

 

Landlord agrees,
at any time and from time to time, upon not less than 10 days prior written
notice from Tenant and not more than twice during any calendar year, to
execute, acknowledge and deliver to Tenant, or its designee, a statement in
writing certifying items (i), (ii), (iii) and (iv) as in Section 45.01
provided, except that “Landlord” shall be substituted for “Tenant”, and vice
versa, in items (iii) and (iv).

 

45.03. Recording.

 

This lease shall
not be recorded.

 

ARTICLE 46

 

Miscellaneous

 

46.01. Entire Agreement.

 

This lease contains the entire agreement between
Landlord and Tenant relating to the leasing of the Demised Premises.  Tenant expressly acknowledges and agrees that
Landlord has not made and is not making, and, in executing and delivering this
lease Tenant is not relying upon, any warranties, representations, promises or
statements, except to the extent that the same may be expressly set forth in
this lease.

 

46.02. Partial Invalidity.

 

If any term or
provision of this Lease, or the application thereof to any person or circumstance,
shall, to any extent, be invalid or unenforceable, the remainder of this Lease,
or the application of such term or provision to persons or circumstances other
than those as to whom or which it is held invalid or unenforceable, shall not
be affected thereby, and each term and provision of this lease shall be valid
and enforceable to the fullest extent permitted by law.

 

46.03. Applicable Law.

 

This lease shall
be deemed to have been made in Rockland County, and shall be construed
according to, and governed by, the law of the State of New York.

 

46.04. Consequential
Damages.

 

In no event shall either party be liable for indirect, consequential,
special, punitive or exemplary damages (including lost profits) incurred or
which may be incurred by the other party hereunder, except as otherwise
expressly set forth in Article 32 of this lease.

 

46.05. Lease Submission.

 

This lease is
submitted to Tenant for signature, with the understanding that it shall not
bind Landlord unless and until it has been executed by Landlord and delivered
to Tenant or Tenant’s

 

59

 

attorney or agent and
until the holder of any mortgage will have approved this Lease if such approval
is required under the terms of such mortgage.

 

46.06. Asterisks.

 

The asterisks set
forth at various locations in this Lease are set forth for Landlord’s internal
administrative purposes, and are not intended to refer to any other language or
to be used for interpretive purposes.

 

46.07.  Confidentiality.

 

Tenant agrees not
to disclose the terms, covenants, conditions or other facts with respect to
this lease, including, but not limited to, the fixed rent, to any person,
corporation, partnership, association, newspaper, periodical or other entity
except pursuant to a valid business purpose or as required by law.  This non-disclosure and confidentiality
agreement shall be binding upon Tenant without limitation as to time, and a
breach of this paragraph shall constitute a material breach under this lease.

 

46.08. Right to Relocate.

 

Landlord may, at
its option, before or after the Commencement Date, elect by notice to Tenant to
substitute for the Demised Premises other office space in the Buildings (herein
called the “Substitute Premises”) designated by Landlord, provided that the
Substitute Premises contains at least the same Rentable Area as the Demised
Premises and has a configuration substantially similar to that of the Demised
Premises.  Landlord’s notice shall be
accompanied by a plan of the Substitute Premises, and such notice or the plan
shall set forth the Rentable Area of the Substitute Premises.  Tenant shall vacate and surrender the Demised
Premises and shall occupy the Substitute Premises promptly (and, in any event,
not later than 120 days) after Landlord has substantially completed the work to
be performed by Landlord in the Substitute Premises pursuant to this
Section.  Tenant shall pay the same fixed
rent and additional rent under Articles 3 and 4 with respect to the Substitute
Premises as were payable with respect to the Demised Premises, without regard
to the Rentable Area of the Substitute Premises.

 

Tenant shall not
be entitled to any compensation for any inconvenience or interference with
Tenant’s business, nor to any abatement or reduction of fixed rent or
additional rent, but Landlord shall, at Landlord’s expense, do the
following:  (i) furnish and install
in the Substitute Premises improvements and appurtenances at least equal in
kind and quality to those contained in the Demised Premises at the time such
notice of substitution is given by Landlord, (ii) provide to Tenant
personnel to perform under Tenant’s direction the moving of Tenant’s Property
from the Demised Premises to the Substitute Premises, (iii) promptly
reimburse Tenant for Tenant’s actual and reasonable out-of-pocket costs
incurred by Tenant in connection with the relocation of any telephone or other
communications equipment from the Demised Premises to the Substitute Premises,
and (iv) promptly reimburse Tenant for any other actual and reasonable
out-of-pocket costs incurred by Tenant in connection with Tenant’s move from
the Demised Premises to the Substitute Premises provided such costs are
approved by Landlord in advance.  Tenant
agrees to cooperate with Landlord so as to facilitate the prompt completion by
Landlord of its obligations under this Section and the prompt surrender by
Tenant of the Demised Premises.  Without
limiting the generality of the preceding sentence, Tenant agrees (i) to
provide to Landlord promptly any approvals or instructions, and any plans and
specifications or any other information reasonably requested by Landlord and (ii) to
promptly perform in the Substitute Premises any work to be performed by Tenant
to prepare the same for Tenant’s occupancy. Landlord shall use commercially
reasonable efforts to
minimize any inconvenience or interference with Tenant’s business, it being the
intention of the parties that any such relocation shall be at not expense to
Tenant and that Tenant shall suffer no interruption of the conduct of business.

 

60

 

From and after the
date that Tenant shall actually vacate and surrender the Demised Premises to
Landlord, this Lease (i) shall no longer apply to the Demised Premises,
except with respect to obligations which accrued on or prior to such surrender
date; and (ii) shall apply to the Substitute Premises as if the Substitute
Premises had been the space originally demised under this Lease.

 

Promptly after
Tenant receives Landlord’s notice of relocation, the parties shall enter into
an amendment to this lease to reflect such relocation or, if required by
Landlord, the parties shall enter into a new lease covering the Substitute
Premises provided that such new lease contains the same material terms and
conditions as this lease.

 

46.09 Authority.

 

The signatories on behalf
of Tenant and Landlord represent and warrant that they are authorized to
execute this Lease, and if Tenant is a corporation or other Entity, Tenant
will, within fifteen (15) days of Landlord’s request, provide Landlord with a
resolution confirming the authorization. Tenant represents and warrants to
Landlord (i) that neither Tenant nor any person or entity that directly
owns a ten percent (10%) or greater equity interest in Tenant nor any of its
officers, directors or managing members (collectively, “Tenant and Others in
Interest”) is a person or entity with whom U.S. persons or entities are
restricted from doing business under regulations of the Office of Foreign Asset
Control (“OFAC”) of the Department of the Treasury (including those named on
OFAC’s Specially Designated and Blocked Persons List) or under any statute,
executive order (including Executive Order 13224 signed on September 24,
2001 (the “Executive Order”) and entitled “Blocking Property and Prohibiting
Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism”),
or other governmental action, (ii) that Tenant and Others in Interest’s
activities do not violate the International Money Laundering Abatement and
Financial Anti-Terrorism Act of 2001 or the regulations or orders promulgated
thereunder (as amended from time to time, the “Money Laundering Act”), and (iii) that
throughout the Term Tenant will comply with the Executive Order and the Money
Laundering Act.

 

46.10 Lease Condition.

 

This Lease is
expressly conditioned upon Landlord receiving the consent and approval of
Landlord’s mortgagee to its term and provisions not later than thirty (30) days
after its execution by Tenant, and delivery to Landlord. Should said consent
not be received within the aforesaid time period, Landlord may, at Landlord’s
sole option, cancel this lease and return any prepaid fixed rent and security
deposit and any other sums which Tenant has deposited with Landlord upon
execution of this Lease, and Tenant shall not be obligated to reimburse
Landlord for any expenses it has incurred with respect to this transaction
prior to the Termination Date pursuant to this Article only, and
thereafter the parties shall have no further obligations to each other with
respect to this Lease.

 

ARTICLE 47

 

Termination Option

 

47.01 Termination Option.

 

Notwithstanding anything to the contrary contained
herein, Tenant shall have an option to surrender the Demised Premises (“Termination
Option”) in accordance with the following terms and conditions:

 

61

 

(a)           If Tenant desires to exercise the
Termination Option, Tenant shall give Landlord irrevocable written notice (“Termination
Notice”) of Tenant’s exercise of this Termination Option, which shall be
delivered in accordance with Article 44 Notices of the Lease, which
Termination Notice must be received by Landlord no later than the date that is
twelve (12) full months prior to the Termination Date.  TIME IS OF THE ESSENCE
with respect to Landlord’s receipt of the Termination Notice and all other
deadlines in this Article.

 

(b)           If Tenant gives the Termination Notice
and complies with all the provisions in this Article, the Lease as it applies
to the Premises only shall terminate at 11:59 p.m. on the last day of the
month designated by Tenant in its Termination Notice (the “Termination Date”),
which termination Date shall not be earlier than the day before the five (5) year
anniversary of the Commencement Date.

 

(c)           In consideration for Tenant’s termination
of this Lease, Tenant shall pay Landlord a termination fee (“Termination Fee”)
in an amount determined based upon the Termination Date, as set forth on Exhibit F
attached hereto. The Termination Fee shall be paid simultaneously with the
Termination Notice sent by Tenant to Landlord.

 

(d)           Tenant’s obligations to pay fixed rent,
additional rent, and any other costs or charges under this Lease, and to
perform all other Lease obligations which specifically survive termination for
the period up to and including the Termination Date, shall survive the
termination of this Lease.

 

(e)           Notwithstanding the foregoing, if at any
time during the period on or after the date on which Tenant shall exercise its
Termination Option, up to and including the Termination Date, Tenant shall be
in default of this Lease, then Landlord may elect, but is not obligated, to
cancel and declare null and void Tenant’s exercise of the Termination Option
and this Lease shall continue in full force and effect for the full Term hereof
unaffected by Tenant’s exercise of the Termination Option.  If Landlord does not cancel Tenant’s exercise
of the Termination Option after Tenant’s default, Tenant shall cure any default
within the period of time specified in this Lease and this obligation to cure
any default shall survive the Termination Date.

 

(f)            In the event Tenant exercises the
Termination Option, Tenant covenants and agrees to surrender full and complete
possession of the Demised Premises to Landlord on or before the Termination
Date vacant, broom-clean, in good order and condition, and, in accordance with
the provisions of this Lease, and thereafter the Demised Premises shall be free
and clear of all leases, tenancies, and rights of occupancy of any entity
claiming by or through Tenant.

 

(g)           If Tenant shall fail to deliver
possession of the Demised Premises on or before the Termination Date in
accordance with the terms hereof, Tenant shall be deemed to be a holdover
Tenant from and after the Termination Date, and in such event all covenants and
terms of Article 32 Surrender and Holdover shall apply and shall
also be liable to Landlord for all costs and expenses incurred by Landlord in
securing possession of the Demised Premises. 
Landlord may accept any such sums from Tenant without prejudice to
Landlord’s right to evict Tenant from the Premises by any lawful means.

 

(h)           If Tenant properly and timely exercises
the Termination Option and properly and timely satisfies all other monetary and
non-monetary obligations under this Lease, the Lease as it applies to the
Demised Premises shall cease and expire on the Termination Date with the same
force and effect as if said Termination Date were the date originally provided
in this Lease as the Expiration Date of the term hereof.

 

(i)            If all or a portion of the Demised
Premises has been sublet, this Termination Option shall be deemed null and void
and neither Tenant nor any subtenant shall have the right to exercise such
option during the term of such sublease.

 

62

 

ARTICLE 48

 

Right of First Offer

 

48.01       Right
Of First Offer.

 

(a)                                  i.              Subject
to the provisions of this Article, Tenant shall have the option to lease from
Landlord contiguous space on the first (1st) floor of the Building, as shown on
the  floor plan attached as Exhibit A-1
(“Additional Space”) (A) at the expiration of the initial space lease for
such Additional Space, subject to Landlord’s right to renew such leases or (B) if
such space has not been initially leased and 
is then currently vacant and further provided Landlord has received a
bona fide expression of interest from a third party to lease said Additional
Space  or (C) if such space has not
been initially leased and  is then currently
vacant and further provided Landlord is not negotiating for such space with
another party, then upon unprompted written notice from Tenant.  If the Term of this Lease shall be in full
force and effect on the expiration or termination date of the initial space
lease, for the Additional Space, subject to Landlord’s right to renew such
leases, or if Landlord has received a bona fide expression of interest from a
third party to lease said Additional Space, or if such space has not been
initially leased and is currently vacant and further provided Landlord is not
negotiating for such space with another party, then upon unprompted written
notice from Tenant, Tenant shall have the option to lease all, but not less
than all of the Additional Space on an as-is basis, provided Tenant either
gives Landlord unprompted written notice or written notice of such election
within ten (10) days after Tenant shall receive Landlord’s notice that
such Additional Space is available for leasing to Tenant or that Landlord has
received  a bona fide expression of
interest from a third party to lease said Additional Space.  If Tenant fails or refuses to exercise this
option as set forth in clauses (A) and (B) above within the time
period set forth above (TIME BEING OF THE ESSENCE),
then and in such event Tenant shall have no further rights under this Section with
respect to such Additional Space.  If
Tenant shall elect to lease said Additional Space: (v) said Additional
Space shall be deemed incorporated within and part of the Premises on the date
that Landlord shall notify Tenant that such Additional Space is ready for
occupancy by Tenant and shall expire on the Expiration Date of this Lease, (x) (i) if
Tenant exercises this option to lease the Additional Space during the first two
(2) years of the term of this lease, the fixed rent payable under this
Lease shall be increased by an amount such that during the balance of the term
of this Lease the fixed rent for said Additional Space shall be at the same
rate per square foot as is payable with respect to the Demised Premises (as set
forth in Section 1.04 hereof, except that notwithstanding anything therein
to the contrary, the fixed rent per square foot for the first 18 months of the
term shall be deemed to be at the rate of $16.50 per rentable square foot), and
(ii) if Tenant exercises this option to lease the Additional Space after
the first two (2) years of the term of this lease, the fixed rent payable
under this Lease shall be increased by an amount such that during the balance
of the term of this Lease the  fixed rent
for said Additional Space shall be the then fair market rent for the Additional
Space, as determined in the manner set forth in clause (ii) below, (y) Tenant’s
Proportionate Share shall be proportionately increased, and (z) all other
terms and provisions set forth in this Lease shall apply, except that (A) Landlord
not be required to perform any work with respect to said Additional Space or
provide any tenant improvement allowance for said Additional Space  and (B) the security deposit shall be
increased by an amount equal to three (3) months average rent for the
Additional Space.

 

The parties shall promptly execute an amendment of
this Lease confirming

 

63

 

Tenant’s election to lease said Additional Space and
the incorporation of said Additional Space into the Premises.

 

ii.             If Tenant exercises this option to lease
the Additional Space after the first two (2) years of the term of this
lease Landlord and Tenant shall use their best efforts, within thirty (30) days
after Landlord receives Tenant’s notice of its election to lease said
Additional Space, (“Negotiation Period”) to agree upon the  fixed rent to be paid by Tenant for said
Additional Space.  If Landlord and Tenant
shall agree upon the  fixed rent, the
parties shall promptly execute an amendment to this Lease stating the  fixed rent for the Additional Space.

 

If the
parties are unable to agree on the  fixed
rent for said Additional Space during the Negotiation Period, then within
fifteen (15) days notice from the other party, given after expiration of the
Negotiation Period, each party, at its cost and upon notice to the other party,
shall appoint a person to act as an appraiser hereunder, to determine the fair
market rent for the Additional Space. 
Each such person shall be a real estate broker or appraiser with at
least ten (10) years’ active commercial real estate appraisal or brokerage
experience (involving the leasing of similar space as agent for both landlords
and tenants) in Rockland
County.  If a party does not appoint a
person to act as an appraiser within said fifteen (15) day period, the person
appointed by the other party shall be the sole appraiser and shall determine
the aforesaid fair market rent.  Each notice
containing the name of a person to act as appraiser shall contain the person’s
address.  Before proceeding to establish
the fair market rent, the appraisers shall subscribe and swear to an oath
fairly and impartially to determine such rent.

 

If the
two appraisers are appointed by the parties as stated in the immediately
preceding paragraph, they shall meet promptly and attempt to determine the fair
market rent.  If they are unable to agree
within forty-five (45) days after the appointment of the second appraiser, they
shall attempt to select a third person meeting the qualifications stated in the
immediately preceding paragraph within fifteen (15) days after the last day the
two appraisers are given to determine the fair market rent.  If they are unable to agree on the third
person to act as appraiser within said fifteen (15) day period, the third
person shall be appointed by the American Arbitration Association, upon the
application of Landlord or Tenant to the office of the Association nearest the
Building.  The person appointed to act as
appraiser by the Association shall be required to meet the qualifications
stated in the immediately preceding paragraph. 
Each of the parties shall bear fifty percent (50%) of the cost of
appointing the third person and of paying the third person’s fees.  The third person, however selected, shall be
required to take an oath similar to that described above.

 

The
three appraisers shall meet and determine the fair market rent.  A decision in which two of the three
appraisers concur shall be binding and conclusive upon the parties.  In deciding the dispute, the appraisers shall
act in accordance with the rules then in force of the American Arbitration
Association, subject however, to such limitations as may be placed on them by
the provisions of this Lease.

 

After
the fixed rent for the Additional Space has been determined by the appraiser or
appraisers and the appraiser or appraisers shall have notified the parties, at
the request of either party, both parties shall execute and deliver to each
other an amendment of this Lease stating the fixed rent for the Additional
Space.

 

If the
fixed rent for said Additional Space has not been agreed to or established
prior to the incorporation of said Additional Space in the Premises, then
Tenant shall pay to Landlord an annual rent (“Temporary Rent”) which Temporary
Rent on a per square foot basis shall be equal to the fixed rent, on a per
square foot basis, then being paid by Tenant for the Premises.

 

64

 

Thereafter,
if the parties shall agree upon a fixed rent, or the fixed rent shall be
established upon the determination of the fair market rent by the appraiser or
appraisers, at a rate at variance with the Temporary Rent (i) if such
fixed rent is greater than the Temporary Rent, Tenant shall promptly pay to
Landlord the difference between the fixed rent determined by agreement or the
appraisal process and the Temporary Rent, or (ii) if such fixed rent is
less than the Temporary Rent, Landlord shall credit to Tenant’s subsequent
monthly installments of fixed rent the difference between the Temporary Rent
and the fixed rent determined by agreement or the appraisal process.

 

In determining the fair market rent for said
Additional Space, the appraiser or appraisers shall be required to take into
account the rentals at which leases are then being concluded for comparable
space in the Building and in comparable buildings in the County of Rockland,
_New York.  In no event shall the fixed
rent for the Additional Space, on a per square foot basis, be less than the
fixed rent for the Premises, on a per square foot basis.

 

(b)           The option granted to Tenant under this Article
may be exercised only by Tenant, its permitted successors and assigns, and not
by any subtenant or any successor to the interest of Tenant by reason of any
action under the Bankruptcy Code, or by any public officer, custodian,
receiver, United States Trustee, trustee or liquidator of Tenant or
substantially all of Tenant’s property. 
Tenant shall have no right to exercise any of such options subsequent to
the date Landlord shall have the right to give the notice of termination
referred to in Article 33. 
Notwithstanding the foregoing, Tenant shall have no right to exercise
the option granted to Tenant hereunder if, at the time it gives notice of such
election (i) Tenant shall not be in occupancy of at least eighty percent
(80%) of the Premises or (ii) more than twenty percent (20%) of the
Premises shall be the subject of a sublease. 
If Tenant shall have elected to exercise its option hereunder, such
election shall be (at Landlord’s sole option) deemed withdrawn if, at any time
after the giving of notice of such election and prior to the occupancy of the
Additional Space, Tenant shall sublease more than twenty percent (20%) of the
Premises or assign Tenant’s interest in this Lease.

 

ARTICLE 49

 

IDA Contingency Clause

 

49.01.      IDA
Contingency Clause.

 

This Agreement is contingent upon the Tenant
obtaining, at its sole cost and expense, an inducement resolution from the
County of Rockland Industrial Development Agency (“IDA”) granting approval to
the Tenant’s application for financial assistance from the IDA in the form of a
sales tax exemption in connection with the Tenant’s proposed use and occupancy
of the Premises.  Tenant shall promptly
apply for and diligently pursue such IDA approvals. In the event Tenant does
not obtain IDA approvals by April 17, 2008, Tenant shall have the right to
cancel this lease by written notice to Landlord, given no later than April 24,
2008. Time shall be of the essence in
connection with the giving of such notice. Tenant shall promptly
notify Landlord when the IDA Approvals have been granted or denied. In the
event Tenant cancels this lease pursuant to this Article, the parties shall
have no further obligations to the other under this lease except that Tenant
shall reimburse Landlord within ten (10) days of demand therefor, the cost
of (i) preparing the plans and specifications for the Work to be performed
by Landlord in the Demised Premises pursuant to the Work Letter and (ii) all
Work performed by Landlord in the Demised Premises (including, without
limitation, demolition of the Demised Premises and materials ordered) and (iii) restoring
the Demised Premises to its condition prior to the commencement of such
demolition or Work pursuant to this Lease, it being the intention of this Article that
Tenant shall indemnify and hold Landlord harmless for all costs and expenses 

 

65

 

incurred by Landlord in connection with this transaction from and after
the execution and delivery of this lease through and including the date of
termination of this lease by Tenant. In the event Tenant fails to make such
payment, it shall be deemed to be a default under this lease and Landlord may
apply the security deposited hereunder to cure said default.

 

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

 

	
   

  	
  RAMLAND
  REALTY ASSOCIATES L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  M-C Rockland Partners
  L.P., Member

  
	
   

  	
  By:

  	
  Mack-Cali Sub
  XIV, Inc., general partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  VISION-SCIENCES,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Yoav M. Cohen

  
	
   

  	
   

  	
  Name: Yoav M. Cohen

  
	
   

  	
   

  	
  Title: Chief Financial
  Officer

  

 

66

 

WORK LETTER (SECTION 7.01)

 

VISION-SCIENCES,
INC.  (“Tenant”) and RAMLAND REALTY ASSOCIATES L.L.C. (“Landlord”) are
executing a written lease (“Lease”), covering premises in One Ramland Road,
Orangeburg, New York, as more particularly described in the Lease (“Premises”).

 

To induce Tenant to enter
into the Lease (which is hereby incorporated by reference) and in consideration
of the covenants contained in this Workletter Agreement (the “Workletter”),
Landlord and Tenant agree as follows:

 

1.             Landlord will have its architect prepare at Tenant’s
expense the following architectural and mechanical drawings and specifications
based upon the sketch layout supplied to Landlord by Tenant.

 

a.             Architectural drawings and specifications for Tenant’s
partition layout, reflected ceiling, placement of electrical outlets and other
installations for the work to be done by Landlord.

 

All such plans and
specifications are expressly subject to Landlord’s written approval, which
approval will not be unreasonably withheld.

 

2.             Landlord agrees to cause the partition plan,
electrical plan, mechanical drawings, and the reflected ceiling plan to be
delivered to Tenant on or before the fifteenth (15th) day after Lease
execution.  Tenant agrees to approve or
disapprove the plans by initialing and returning them to Landlord within five (5) days
of receipt of each plan.  Upon approval
of the plans initialed by Tenant, Landlord will file the plans with the
appropriate governmental agencies. This Lease is expressly conditioned upon
Landlord obtaining a building permit from the appropriate government official
for the Work (as hereinafter defined).

 

3.             Landlord agrees, at Tenant’s expense, to
do the work in the Demised Premises as shown on the approved plans described
above (including, without limitation, construction of demising walls), which will be
referred to as the “Work” in the following provisions of this Workletter.  “Building Standard” will mean the type and
grade of material, equipment and/or device designated by Landlord as standard
for the Building.  All items are Building
Standard unless otherwise noted.

 

4.             Landlord shall obtain at least three (3) bids
for the major trades comprising the Work. 
Copies of all bids shall be provided to Landlord and Tenant for bid
review.  Landlord shall use the
subcontractor for each major trade with the lowest qualified bid unless Tenant
and Landlord shall agree otherwise. 
Promptly following the acceptance of bids, Landlord shall prepare and
submit to Tenant a statement including Landlord’s 10% supervision plus 5%
overhead charges (“Landlord’s Estimate”) which specifies in detail Landlord’s
good faith estimate of the total “Tenant Improvement Costs”.  The “Tenant Improvement Costs” shall be
defined as any and all reasonable costs, including hard and soft costs, which
are expected to be incurred by Landlord in connection with the construction of
The Work.  Landlord’s Estimate shall be
subject to the review and written approval of Tenant, such approval not to be
unreasonably withheld.  Such approval
shall be deemed given if Tenant does not disapprove the same in writing within
fifteen (15) days after its receipt of Landlord’s Estimate.

 

Tenant shall pay the
Tenant Improvement Costs to Landlord, as Additional Rent, prior to occupancy of
the Premises, as follows: (i) fifty percent (50%) upon Tenant’s execution
and delivery of this Lease and (ii) fifty percent (50%) in progress
payments as the Work is completed with reasonable supporting documentation from
Landlord. Landlord’s cost of the Work shall include Landlord’s overhead and
general conditions. Tenant shall pay to 

 

67

 

Landlord, as Additional
Rent, such progress payments due hereunder within ten (10) days following
completion of such Work and Landlord’s demand therefor.  Notwithstanding anything herein to the
contrary, in the event the actual Tenant Improvement Cost shall be less than
$1,000,000.00, the difference between $1,000,000.00 and the actual Tenant
Improvement Cost shall be shared equally by Tenant and Landlord.

 

5.             All low partitioning, workstation modules, bank screen
partitions and prefabricated partition systems will be furnished and installed
by Tenant at its expense. Notwithstanding anything herein to the contrary, at
Tenant’s request, Landlord shall remove the existing workstations in the
Premises, store said workstations during the performance of the Work and
re-install said workstations in accordance with the approved plans. The cost of
said work will be included in the Tenant Improvement Costs. Landlord makes no
representation or warranty with respect to said workstations, their condition
or their suitability for any purpose and Tenant may use them in their as-is
condition.

 

6.             The installation or wiring of telephone and computer
(data) outlets is not part of the Work. Tenant will bear the responsibility to
provide its own telephone and data systems at Tenant’s sole cost and expense
(unless paid for as soft costs as provided for in paragraph 4 above).

 

7.             Changes in the Work, if necessary or requested by the
Tenant, will be accomplished after the execution of the Lease and this
Workletter, and without invalidating any part of the Lease or Workletter, by
written agreement between Landlord and Tenant (referred to as a “Change Order”).  Each Change Order will be prepared by
Landlord and signed by both Tenant and Landlord stating their agreement on all
of the following:

 

a.                                       The scope of the change in the Work; and

 

b.                                      The cost of the change; and

 

c.                                       The manner in which the cost will be
paid; and

 

d.                                      The estimated extent of any adjustment to
the Commencement Date (if any) as a result of the change in the Work.

 

                                                Each and every Change Order will be
signed by Landlord’s and Tenant’s respective construction representatives.  In no event will any Change Order(s) be
permitted without such authorizations.  A
10% supervision plus 5% overhead charge will be added to the cost of any Change
Order and to the cost of any other work to be performed by Landlord in the
Demised Premises after Landlord’s completion of the Work.  If Tenant fails to approve any such Change
Order within one (1) week, it will be deemed disapproved in all respects
by Tenant, and Landlord will not be authorized to proceed on it.  Any increase in the cost of the Work or the
change in the Work stated in a Change Order which results from Tenant’s failure
to timely approve and return said Change Order will be paid by Tenant.  Tenant agrees to pay Landlord the cost of any
Change Order upon receipt of an invoice for the Change Order.

 

8.             Intentionally omitted.

 

9.             Within 30 days of Tenant’s occupancy of all or any
part of the Demised Premises, Tenant will identify and list any portion of the
Work which does not conform to this Workletter (“Punch List”).  The Landlord will review with the Tenant all
of the items so listed and correct or complete any portion of the Work
referenced in the Punch List which fails to conform to the requirements of this
Workletter.

 

10.           The terms contained in the Lease (which includes all
Exhibits to the Lease) constitute 

 

68

 

Landlord’s agreement with
Tenant with respect to the Work.

 

11.           Except as set forth in the last sentence of this
paragraph, all Work within the Demised Premises will become the property of
Landlord upon installation.  No refund,
credit or removal of any Work will be permitted at the expiration or earlier
termination of the Lease.  Items installed
that are not integrated in any way with the Work (e.g., furniture and
other trade fixtures) become the property of Tenant upon installation.

 

12.           It is agreed that notwithstanding the date provided in
the Lease for the Commencement Date, the term will not commence until the
earlier of (i) the date Tenant (or anyone claiming under or through
Tenant) occupies all or any part of the Demised Premises or (ii) the date
Landlord has “substantially completed” the Work; provided, however, that if
Landlord is delayed in substantially completing the Work as a result of:

 

a.             Tenant’s failure to approve the plans and
specifications in accordance with Paragraph 2 of this Workletter;

 

b.             Tenant’s failure to furnish interior finish
specifications (i.e., paint colors, carpet selection, etc.) to Landlord
by the tenth (10th) business day after Tenant has approved the plans and
specifications pursuant to Paragraph 2;

 

c.             Tenant’s request for materials, finishes or
installations other than Landlord’s Building Standard;

 

d.             Tenant’s changes in the Work;

 

e.             The performance of a person, firm, partnership or
corporation employed by Tenant and the non-completion of work by such person,
firm, partnership or corporation; and/or

 

f.              Any act or omission of Tenant which delays
governmental inspections and approvals, including, if necessary and without
limitation, failure to install furniture and/or failure to obtain low voltage
wiring permits;

 

g.             Tenant’s failure to pay the Tenant Improvements Cost
to Landlord when required pursuant to Paragraph 4;

 

then the Commencement
Date will be accelerated by the number of days of such delay, and Tenant’s
obligation to pay fixed rent and Additional Rent will commence as of such
earlier date.

 

13.           Landlord will permit Tenant and its agents to enter,
as licensees only, the Demised Premises prior to the Commencement Date so that
Tenant may perform through its own contractors such other work and decorations
as Tenant may desire at the same time Landlord’s contractors are working in the
Demised Premises.  The foregoing license
to enter prior to the Commencement Date, however, is conditioned upon:

 

a.             Tenant’s workmen and mechanics working in harmony and
not interfering with the labor employed by Landlord, Landlord’s mechanics or
contractors or by any other tenant or its mechanics or contractors;

 

b.             Tenant providing Landlord with evidence of Tenant’s
contractors and subcontractors carrying such worker’s compensation insurance as
required by law, commercial general liability and property insurance in amounts
no less than the amounts set forth in Article 18 of the Lease.  If at any time such entry will cause
disharmony or interference of the nature described in subparagraph 13 a) above,
this license may be withdrawn by Landlord upon forty-eight (48) hours written
notice to Tenant.  Such entry will be
deemed controlled by all of the terms, 

 

69

 

covenants, provisions and
conditions of the Lease, except as to the covenant to pay fixed rent.  Landlord will not be liable in any way for
any injury, loss or damage which may occur to any of Tenant’s decorations or
installations made prior to the Commencement Date, the same being solely at
Tenant’s risk; and

 

c.             If Tenant’s contractors cause disharmony with labor
employed by Landlord, Landlord shall have the right to cause Tenant to use
union contractors.

 

14.           No part of the Demised Premises will be deemed
unavailable for occupancy by Tenant, nor will any work which the Landlord is
obligated to perform in such part of the Demised Premises be deemed incomplete
for the purpose of any adjustment of fixed rent payable under the Lease, if
minor details of construction, decoration or mechanical adjustments exist and
the non-completion of such details does not materially interfere with the
Tenant’s use of such part of the Demised Premises.

 

15.           Intentionally omitted.

 

16.           This Workletter is based on the materials and layouts
set forth or referenced in the Workletter. 
Any change to the materials and layout will require a recalculation of
construction costs and any increases in costs shall be Tenant’s responsibility.  Such recalculation will not negate any other Article of
this Lease.

 

17.           All sums payable by Tenant to Landlord in connection
with this Workletter and any other work to be performed by Landlord within the
Demised Premises and billable to Tenant will be deemed additional rent.

 

18.           With respect to the construction work being conducted
in or about the Demised Premises, each party agrees to be bound by the approval
and actions of their respective construction representatives.  Unless changed by written notification, the
parties designate the following individuals as their respective construction
representatives:

 

	
  FOR LANDLORD:

  	
   

  	
  FOR TENANT:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  c/o Mack-Cali Realty
  Corporation

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

70

 

CLEANING SPECIFICATIONS -

OFFICE PORTION OF DEMISED PREMISES

(SECTION 20.02)

 

1.             General

 

(a)           All flooring to be swept and/or dust
mopped on each business day.

 

(b)           All carpeting areas and rugs vacuumed
twice weekly.

 

(c)           All stairways to be swept each business day.

 

(d)           Empty and wipe wastepaper baskets and
shredders each business day.

 

(e)           Cigarette urns to be cleaned each
business day and sand replaced when necessary.

 

(f)            Floors, walls and interior surfaces of
lobby, elevators and public corridors to be maintained as required.

 

(g)           Dust furniture and window sills as
required.

 

(h)           Water coolers to be wiped each business
day.

 

(i)            Entrance lobby glass to be washed or
wiped each business day.

 

2.             Lavatories Daily (Business Days)

 

(a)           All flooring to be swept and washed using
disinfectant in water.

 

(b)           All basins, bowls, urinals and toilet
seats to be washed.

 

(c)           All mirrors to be washed.

 

(d)           Paper towel and sanitary disposal
receptacles to be emptied and cleaned.

 

(e)           Toilet tissue holders and soap and paper
towel dispensers to be filled.

 

3.             Windows

 

(a)           Three times per year clean all exterior
windows on the inside only, provided that window sills are free of articles and
access to the windows is not obstructed.

 

(b)           Two times per year clean all exterior
windows on the outside.

 

4.             Venetian Blinds

 

Venetian blinds to be dusted annually or more
frequently as may be reasonably necessary.

 

5.             Ledges and mouldings

 

Ledges and mouldings to be high dusted semi-annually
as required.

 

6.             Lighting Fixtures

 

Interior and exterior of lighting fixtures to be
dusted annually as required.

 

71

 

RULES AND REGULATIONS (SECTION 38.01)

 

1.             Any moving of furniture or equipment into or out of
the Demised Premises must be done by Tenant at its own cost and expense, on
business days after 6:00 P.M., or on Saturday subject, however, to the
prior written consent of Landlord, which consent shall not be unreasonably
withheld, conditioned or delayed.  If
such move requires use of an elevator, such move shall not be in excess of such
elevator’s carrying load capacity. Notwithstanding anything herein to the
contrary,  this rule shall not be
applicable if any such move by Tenant utilizes the loading dock exclusively
servicing the Demised Premises.

 

2.             The sidewalks, entrances, passages, lobby, elevators,
vestibules, stairways, corridors or halls shall not be obstructed or encumbered
by Tenant or used for any purpose other than ingress and egress to and from the
Demised Premises and Tenant shall not permit any of its invitees to congregate
in any of said areas.  No door mat shall
be placed or left in any public hall or outside any entry door of the Demised
Premises.

 

3.             No awnings or other projections shall be attached to the
outside walls of the Building.  No
curtains, blinds, shades, or screens shall be attached to or hung in, or used
in connection with, any window or door of the Demised Premises, without the
prior consent of Landlord, which consent shall not be unreasonably withheld,
conditioned or delayed.  Such curtains,
blinds, shades or screens must be of a quality, type, design and color, and
attached in the manner, approved by Landlord, which approval shall not be
unreasonably withheld, conditioned or delayed.

 

4.             Except as otherwise provided
in the lease, no
sign, insignia, advertisements, object, notice or other lettering shall be
exhibited, inscribed, painted or affixed by any tenant on any part of the
outside or inside of the Demised Premises (except if not visible from outside
the Demised Premises) or the Building without the prior written consent of
Landlord.  In the event of the violation
of the foregoing by Tenant, Landlord may remove the same without any liability,
and may charge the expense incurred in such removal to Tenant.  Interior signs and lettering on doors and
directory tablets shall, if and when approved by Landlord, be inscribed,
painted or affixed by Landlord at the expense of Tenant, and shall be of a
size, color and style acceptable to Landlord.

 

5.             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 Tenant.

 

6.             No showcases or other articles shall be put in front
of or affixed to any part of the exterior of the Building, nor placed in the
Building halls, corridors or vestibules by Tenant.

 

7.             Tenant shall not discharge or permit to be discharged
any materials which may cause damage into waste lines, vents or flues of the
Building.  The water and wash closets and
other plumbing fixtures shall not be used for any purposes other than those for
which they were designed or constructed, and no sweepings, rubbish, rags,
corrosives, acids or other substances shall be thrown or deposited therein.  All damages resulting from any misuse of the
fixtures shall be borne by the tenant who, or whose invitees, shall have caused
the same.

 

8.             Tenant shall not mark, paint, drill into, or in any
way deface any part of the Demised Premises or the Building, except
that paintings or other wall hangings/decorations shall be permitted.  No boring, cutting or stringing of wires
shall be permitted, except with the prior consent of Landlord, and as Landlord
may direct.  Tenant shall not lay
linoleum, or other similar floor covering, so that the same shall come in
direct contact with the floor of the Demised 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 and other similar adhesive
material being expressly prohibited.

 

9.             No bicycles, vehicles, animals, fish or birds of any
kind shall be brought into or kept in or about the Demised Premises.

 

72

 

10.           No objectional noise, including, but not limited to,
music or the playing of musical instruments, recordings, radio or television
which, in Landlord’s judgment, might disturb other tenants in the Building,
shall be made or permitted by Tenant. 
Nothing shall be done or permitted in the Demised Premises by Tenant
which would adversely impair or interfere with the use or enjoyment by any
other tenant of any other space in the Building.  Tenant shall not throw anything out of the
doors, windows of skylights or down the passageways, except in the ordinary course of Tenant’s business and in compliance
with law.

 

11.           Neither Tenant nor its
invitees shall bring or keep upon the Demised Premises any explosive fluid,
chemical or substance, nor any inflammable or combustible objects or materials,
other than deminimus quantities of office, cleaning and other supplies kept in
the ordinary course of Tenant’s business, which shall be used, stored and
disposed of in accordance with applicable laws and requirements of public
authorities.

 

12.           Additional locks or bolts of any kind
which shall not be operable by the grand master key(s) for the Building
shall not be placed upon any of the doors or windows by Tenant, nor shall any
changes be made in locks or the mechanism thereof which shall make such locks
inoperable by said grand master key(s). 
Tenant shall, upon the termination of its tenancy, turn over to Landlord
all keys of stores, offices and toilet rooms, either furnished to, or otherwise
procured by, Tenant and in the event of the loss of any keys furnished by
Landlord, Tenant shall pay to Landlord the cost thereof.

 

13.           All removals from the Demised Premises or
the Building, or the moving or carrying in or out of any safes, freight,
furniture, packages, boxes, crates or any other object or matter of any
description must take place during such hours and in such elevators as Landlord
or its agent may determine from time to time. 
All deliveries of any nature whatsoever to the Building or the Demised
Premises must be made only through Building entrances specified for such
deliveries by Landlord.  Landlord
reserves the right to inspect all objects and matter to be brought into the Building
and to exclude from the Building all objects and matter which violate any of
these Rules and Regulations or the Lease. Landlord may require any person
leaving the Building with any package or other object or matter, to submit a
pass, listing such package or object or matter, from the tenant from whose
premises the package or other object or matter is being removed, but the
establishment and enforcement of such requirement shall not impose any
responsibility on Landlord for the protection of any tenant against the removal
of property from the premises of such tenant. 
Landlord shall, in no way, be liable to Tenant for damages or loss
arising from the admission, exclusion or ejection of any person to or from the
Demised Premises or the Building under the provisions of this Rule 13 or Rule 17
hereof.

 

14.           Tenant shall not occupy or permit any
portion of the Demised Premises to be occupied as an office for a public
stenographer or public typist, or for the possession, storage, manufacture, or
sale of beer, wine or liquor, narcotics, drugs, tobacco in any form, or as a
barber, beauty or manicure shop, or as an employment bureau.  Tenant shall not advertise for laborers
giving an address at the Demised Premises. 
Tenant shall not use the Demised Premises or any part thereof, or permit
the Demised Premises or any part thereof to be used, for manufacturing, or for
sale at auction of merchandise, goods or property of any kind.

 

15.           Tenant shall not purchase or contract for
services in the Demised Premises except from contractors, companies or persons so
approved by the Landlord, which approval shall not be unreasonably withheld,
conditioned or delayed.

 

16.           Except as
otherwise provided in the lease,  Landlord shall have the right to prohibit
any advertising or identifying sign by Tenant which in Landlord’s judgment
tends to impair the reputation of the Building or its desirability as a
building for offices, and upon notice from Landlord, Tenant shall refrain from
or discontinue such advertising or identifying sign.

 

17.           Landlord reserves the right (although it
is specifically understood that Landlord shall not be obligated under any
circumstances) to exclude from the common areas of the Building 

 

73

 

during hours other
than regular business hours and days all persons who do not present a pass to
the Building signed by Landlord.  All
such persons entering and/or leaving the Building during hours other than
regular business hours and days may be required to sign a register.  Landlord will furnish passes to persons for
whom any tenant requests same in writing. 
Tenant shall be responsible for all persons for whom Tenant requests
such pass and shall be liable to Landlord for all acts or omissions of such
persons.  Landlord’s providing of
services during other than regular business hours and days shall not be
interpreted to mean that the Building is in operation during such after-hours;
and, in lieu of possible darkness, lack of activity and lack of Building
services during such after-hours, Tenant may wish to take measures regarding
security of its invitees using the Demised Premises during other than regular
business hours and days.

 

18.           All entrance doors in the Demised
Premises shall be left locked by Tenant when the Demised Premises are not in
use.  Entrance doors shall not be left
open at any time.

 

19.           Unless Landlord shall furnish electrical
energy hereunder as a service included in the rent, Tenant shall, at Tenant’s
expense, provide artificial light and electrical energy for the employees to
Landlord and/or Landlord’s contractors while doing janitorial service or other
cleaning in the Demised Premises and while making repairs or alterations in the
Demised Premises.

 

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

 

21.           The requirements of Tenant will be
attended to only upon application at the office of the Building.  Employees of Landlord shall not perform any
work or do anything outside of their regular duties, unless under special
instructions from Landlord.

 

22.           Canvassing, soliciting and peddling in
the Building are prohibited and Tenant shall cooperate to prevent the same.

 

23.           There shall not be used in any space, or
in any lobbies, corridors, public halls or other public areas of the Building,
in the moving or delivery or receipt of safes, freights, furniture, packages,
boxes, crates, paper, office material, or any other object or thing, any hand
trucks except those equipped with rubber tires, side guards, and such other
safeguards as Landlord shall require.  No
move or delivery of any object or thing of whatever nature, other than
light-weight objects hand-carried by not more than one person or on a dolly by delivery personnel,
shall be made without prior notice by Tenant to Landlord and without Tenant,
prior to any such move or delivery, laying (without affixation or attachment to
any part of the floor or floor covering) adequate masonite or plywood sheets
covering all lobby corridor, public hall and other public area floors of the
Building (whether carpeted or terrazzo) over which such move or delivery shall
take place. Notwithstanding anything herein to the contrary, this rule shall
not be applicable if any such move and/or delivery utilizes the loading dock
exclusively servicing the Demised Premises.

 

24.           Tenant shall not cause or permit any
objectional odors of cooking or other processes or any unusual or objectionable
odors to emanate from the Demised Premises which would annoy other tenants or
create a public or private nuisance.  No
cooking shall be done in the Demised Premises except as is expressly permitted
in the Lease.

 

25.           Tenant shall cooperate with Landlord in
obtaining maximum effectiveness of the cooling system by lowering and closing
venetian blinds and/or drapes and curtains when the sun’s rays fall directly on
the windows of the Demised Premises.

 

26.           Subject to the provisions of the lease,
Landlord reserves the right to rescind, alter or waive any rule or
regulation at any time prescribed for the Building, when, in its judgment, it
deems it necessary or desirable for the reputation, safety, care or appearance
of the Building, or the preservation of good order therein, or the operation or
maintenance of the Building or the equipment thereof, or the comfort of tenants
or others in the Building.  No recision,
alteration or waiver of any rule or regulation in favor of one tenant
shall operate as a recision, alteration or waiver in favor of any other tenant.

 

74

 

27.           Tenant,
its employees, agents, licensees, contractors and subtenants shall not litter
any public areas of the Building or the Real Property (including, the walkways
and parking areas located thereon).

 

28.           Landlord
shall not unreasonably withhold its consent to the installation, maintenance
and operation by Tenant in the Demised Premises of data processing machines,
office duplicating machines, teletype machines and other business machines and
machinery customarily used in offices in the ordinary course of business,
provided, however, that Tenant shall comply with all other obligations of this
lease that may be applicable to or result from such installation, maintenance
or operation.

 

29.           Landlord shall not unreasonably
withhold or delay from Tenant any approval provided for in the Rules and
Regulations.

 

30.           Tenant shall secure or lock valuable equipment or
goods within the Demised Premises that are readily removable including, without
limitation, laptop computers. Landlord shall not be responsible to Tenant for
any loss of property from the Demised Premises however occurring,  including but not
limited to theft or burglary from the Demised Premises.

 

31.           To the extent these rules and
regulations conflict with the terms and conditions of the lease, the lease
shall prevail.

 

75

 

EXHIBIT “B”

 

STATEMENT OF TENANT IN RE:

 

	
   

  	
   

  	
  Date:

  
	
   

  	
   

  	
  Re: Address:

  
	
   

  	
   

  	
  Your Appl. #

  

 

Gentlemen:

 

It is our understanding that you have committed to
place a mortgage upon the subject premises and as a condition precedent thereof
have required this certification by the undersigned.

 

The undersigned, as Tenant, under that certain lease
dated
                    ,
made with                                             
as Landlord, hereby ratifies the said lease and certifies that:

 

1.                                       the
undersigned has entered into occupancy of the premises described in said lease
on
                                        ;
and,

 

2.                                       the
undersigned is presently open and operating in the premises; and,

 

3.                                       the
minimum rental in the annual amount of
$                              has
been paid through                                           ;
and,

 

4.                                       said
lease is in full force and effect and has not been assigned, modified,
supplemented or amended in any way (except by agreement(s) dated
                      ),
and to the best of our knowledge, neither party thereto is in default
thereunder; and,

 

5.                                       that
the same represents the entire agreement between the parties as to this
leasing; and,

 

6.                                       that
the term of said lease expires on
                              ;
and,

 

7.                                       to
the best of our knowledge, all conditions under said lease to be performed by
the Landlord have been satisfied, including but without limitation, all
co-tenancy requirements thereunder; and,

 

8.                                       all
required contributions by Landlord to Tenant on account of Landlord’s
improvements have been received; and,

 

9.                                       on
this date to the best of our knowledge, there are no existing defenses or
offsets which the undersigned has against the enforcement of said lease by the
Landlord; and,

 

10.                                 that
no rental has been paid in advance and no security (or in the amount of
$                            )
has been deposited with Landlord; and,

 

11.                                 that
rental through
                        ,
20    , has been paid.

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  	
  (Tenant)

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  (Title)

  
				

 

B-1

 

EXHIBIT “C”

 

Intentionally
omitted.

 

C-1

 

Sample

 

EXHIBIT “D”

 

COMMENCEMENT DATE AGREEMENT

 

1.0                               PARTIES

 

THIS AGREEMENT made the
                  day
of
                ,
200  is by and between RAMLAND REALTY
ASSOCIATES L.L.C. (“Landlord”) whose address is c/o Mack-Cali Realty
Corporation, 343 Thornall Street, P.O. Box 7817, Edison, New Jersey
08818-7817 and VISION SCIENCES, INC.
(“Tenant”) whose address is 40 Ramland Road, Orangeburg, New York 10962.

 

2.0                               STATEMENT
OF FACTS

 

2.1                                 Landlord
and Tenant entered into a Lease dated
                        ,
200  (referred to as the “Lease” in this Agreement) setting forth the
terms of occupancy by Tenant of approximately
              
gross rentable square feet on the
          
(      ) floor (referred to as the “Premises” in
this Agreement) at
                                                          
(referred to as “Building” in this Agreement); and

 

2.2                                 The
Commencement Date of the Term of the Lease has been determined in accordance
with the provisions of Article 20 of the Lease.

 

3.0                               STATEMENT
OF TERMS

 

The parties conclusively agree that they have received good and
valuable consideration for making the following agreements:

 

3.1                                 The
Commencement Date of the Term of the Lease is
                    
, 200  and the Expiration Date of the Term is
                          
, 20    ,  and Articles
4 and 6 of the Basic Lease Provisions are modified accordingly.

 

3.2                                 Tenant
represents and warrants to Landlord that (i) there exists no default under
the Lease either by Tenant or Landlord; and (ii) there exists no offset,
defense or counterclaim to Tenant’s obligations under the Lease.

 

3.2                                 This
Agreement is executed by the parties hereto for the purpose of providing a
record of the Commencement and Expiration Dates of the Lease.

 

EXCEPT as modified in this Agreement, the Lease will remain in full
force and effect as if the same were set forth in full in this Agreement, and
Landlord and Tenant ratify and confirm all the terms and conditions of the
Lease as modified by this Agreement.

 

THIS AGREEMENT will be binding upon and inure to the benefit of the
parties hereto and their respective legal representatives, successors and
permitted assigns.

 

EACH PARTY AGREES that it will not raise or assert as a defense to any
obligation under the Lease or this Agreement or make any claim that the Lease
or this Agreement is invalid or unenforceable due to any failure of this
document to comply with ministerial requirements including, but not limited to,
requirements for corporate seals, attestations, witnesses, notarizations or
other similar requirements, and each party waives the right to assert any such
defense or make any claim of invalidity or unenforceability due to any of the
failures described above.

 

Landlord and Tenant have executed this Agreement as of the date and
year first above written and represent and warrant to each other that the
individual signing this Agreement on its behalf possesses the requisite
authority to sign this Agreement.

 

	
  LANDLORD:

  	
   

  	
  TENANT:

  
	
   

  	
   

  	
   

  
	
  RAMLAND
  REALTY ASSOCIATES L.L.C.

  	
   

  	
  VISION
  SCIENCES, INC.

  
	
  By:

  	
  M-C Rockland
  Partners L.P., Member

  	
   

  	
   

  
	
  By:

  	
  Mack-Cali Sub
  XIV, Inc., general partner

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
  Name:

  
	
   

  	
  Title:

  	
   

  	
   

  	
  Title:

  
							

 

D-1

 

EXHIBIT “E”

 

TENANT’S SIGN SPECIFICATIONS

 

 

 

E-1

 

EXHIBIT “F”

 

 

	
  Termination Date

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (Month of Lease)

  	
   

  	
  Termination
  Fee

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  $

  	
  1,011,139.86

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  $

  	
  1,005,229.76

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  $

  	
  999,285.18

  	
   

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
  $

  	
  993,305.93

  	
   

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  $

  	
  987,291.80

  	
   

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
  $

  	
  981,242.59

  	
   

  	
   

  	
   

  	
   

  
	
  7

  	
   

  	
  $

  	
  975,158.09

  	
   

  	
   

  	
   

  	
   

  
	
  8

  	
   

  	
  $

  	
  969,038.10

  	
   

  	
   

  	
   

  	
   

  
	
  9

  	
   

  	
  $

  	
  962,882.41

  	
   

  	
   

  	
   

  	
   

  
	
  10

  	
   

  	
  $

  	
  956,690.81

  	
   

  	
   

  	
   

  	
   

  
	
  11

  	
   

  	
  $

  	
  950,463.09

  	
   

  	
   

  	
   

  	
   

  
	
  12

  	
   

  	
  $

  	
  944,199.04

  	
   

  	
   

  	
   

  	
   

  
	
  13

  	
   

  	
  $

  	
  937,898.46

  	
   

  	
   

  	
   

  	
   

  
	
  14

  	
   

  	
  $

  	
  931,561.12

  	
   

  	
   

  	
   

  	
   

  
	
  15

  	
   

  	
  $

  	
  925,186.81

  	
   

  	
   

  	
   

  	
   

  
	
  16

  	
   

  	
  $

  	
  918,775.32

  	
   

  	
   

  	
   

  	
   

  
	
  17

  	
   

  	
  $

  	
  912,326.43

  	
   

  	
   

  	
   

  	
   

  
	
  18

  	
   

  	
  $

  	
  905,839.92

  	
   

  	
   

  	
   

  	
   

  
	
  19

  	
   

  	
  $

  	
  899,315.57

  	
   

  	
   

  	
   

  	
   

  
	
  20

  	
   

  	
  $

  	
  892,753.16

  	
   

  	
   

  	
   

  	
   

  
	
  21

  	
   

  	
  $

  	
  886,152.47

  	
   

  	
   

  	
   

  	
   

  
	
  22

  	
   

  	
  $

  	
  879,513.28

  	
   

  	
   

  	
   

  	
   

  
	
  23

  	
   

  	
  $

  	
  872,835.36

  	
   

  	
   

  	
   

  	
   

  
	
  24

  	
   

  	
  $

  	
  866,118.49

  	
   

  	
   

  	
   

  	
   

  
	
  25

  	
   

  	
  $

  	
  859,362.43

  	
   

  	
   

  	
   

  	
   

  
	
  26

  	
   

  	
  $

  	
  852,566.96

  	
   

  	
   

  	
   

  	
   

  
	
  27

  	
   

  	
  $

  	
  845,731.86

  	
   

  	
   

  	
   

  	
   

  
	
  28

  	
   

  	
  $

  	
  838,856.88

  	
   

  	
   

  	
   

  	
   

  
	
  29

  	
   

  	
  $

  	
  831,941.79

  	
   

  	
   

  	
  -Not Applicable

  	
   

  
	
  30

  	
   

  	
  $

  	
  824,986.37

  	
   

  	
   

  	
   

  	
   

  
	
  31

  	
   

  	
  $

  	
  817,990.39

  	
   

  	
   

  	
   

  	
   

  
	
  32

  	
   

  	
  $

  	
  810,953.58

  	
   

  	
   

  	
   

  	
   

  
	
  33

  	
   

  	
  $

  	
  803,875.72

  	
   

  	
   

  	
   

  	
   

  
	
  34

  	
   

  	
  $

  	
  796,756.58

  	
   

  	
   

  	
   

  	
   

  
	
  35

  	
   

  	
  $

  	
  789,595.92

  	
   

  	
   

  	
   

  	
   

  
	
  36

  	
   

  	
  $

  	
  782,393.48

  	
   

  	
   

  	
   

  	
   

  
	
  37

  	
   

  	
  $

  	
  775,149.03

  	
   

  	
   

  	
   

  	
   

  
	
  38

  	
   

  	
  $

  	
  767,862.31

  	
   

  	
   

  	
   

  	
   

  
	
  39

  	
   

  	
  $

  	
  760,553.10

  	
   

  	
   

  	
   

  	
   

  
	
  40

  	
   

  	
  $

  	
  753,161.13

  	
   

  	
   

  	
   

  	
   

  
	
  41

  	
   

  	
  $

  	
  745,746.15

  	
   

  	
   

  	
   

  	
   

  
	
  42

  	
   

  	
  $

  	
  738,287.92

  	
   

  	
   

  	
   

  	
   

  
	
  43

  	
   

  	
  $

  	
  730,786.19

  	
   

  	
   

  	
   

  	
   

  
	
  44

  	
   

  	
  $

  	
  723,240.69

  	
   

  	
   

  	
   

  	
   

  
	
  45

  	
   

  	
  $

  	
  715,651.18

  	
   

  	
   

  	
   

  	
   

  

 

 

F-1

 

 

	
  46

  	
   

  	
  $

  	
  708,017.40

  	
   

  	
   

  	
   

  	
   

  
	
  47

  	
   

  	
  $

  	
  700,339.09

  	
   

  	
   

  	
   

  	
   

  
	
  48

  	
   

  	
  $

  	
   692,615.98

  	
   

  	
   

  	
   

  	
   

  
	
  49

  	
   

  	
  $

  	
   684,847.83

  	
   

  	
   

  	
   

  	
   

  
	
  50

  	
   

  	
  $

  	
   677,034.36

  	
   

  	
   

  	
   

  	
   

  
	
  51

  	
   

  	
  $

  	
   669,175.31

  	
   

  	
   

  	
   

  	
   

  
	
  52

  	
   

  	
  $

  	
   661,270.42

  	
   

  	
   

  	
   

  	
   

  
	
  53

  	
   

  	
  $

  	
   653,319.42

  	
   

  	
   

  	
   

  	
   

  
	
  54

  	
   

  	
  $

  	
   645,322.03

  	
   

  	
   

  	
   

  	
   

  
	
  55

  	
   

  	
  $

  	
   637,278.00

  	
   

  	
   

  	
  -Not Applicable

  	
   

  
	
  56

  	
   

  	
  $

  	
   629,187.04

  	
   

  	
   

  	
   

  	
   

  
	
  57

  	
   

  	
  $

  	
   621,048.88

  	
   

  	
   

  	
   

  	
   

  
	
  58

  	
   

  	
  $

  	
   612,863.25

  	
   

  	
   

  	
   

  	
   

  
	
  59

  	
   

  	
  $

  	
   604,629.87

  	
   

  	
   

  	
   

  	
   

  
	
  60

  	
   

  	
  $

  	
   596,348.47

  	
   

  	
   

  	
   

  	
   

  
	
  61

  	
   

  	
  $

  	
   588,018.75

  	
   

  	
   

  	
   

  
	
  62

  	
   

  	
  $

  	
   579,640.45

  	
   

  	
   

  	
   

  
	
  63

  	
   

  	
  $

  	
   571,213.27

  	
   

  	
   

  	
   

  
	
  64

  	
   

  	
  $

  	
   562,736.93

  	
   

  	
   

  	
   

  
	
  65

  	
   

  	
  $

  	
   554,211.15

  	
   

  	
   

  	
   

  
	
  66

  	
   

  	
  $

  	
   545,635.63

  	
   

  	
   

  	
   

  
	
  67

  	
   

  	
  $

  	
   537,010.39

  	
   

  	
   

  	
   

  
	
  68

  	
   

  	
  $

  	
   528,334.24

  	
   

  	
   

  	
   

  
	
  69

  	
   

  	
  $

  	
   519,607.77

  	
   

  	
   

  	
   

  
	
  70

  	
   

  	
  $

  	
   510,830.40

  	
   

  	
   

  	
   

  
	
  71

  	
   

  	
  $

  	
   502,001.83

  	
   

  	
   

  	
   

  
	
  72

  	
   

  	
  $

  	
   493,121.76

  	
   

  	
   

  	
   

  
	
  73

  	
   

  	
  $

  	
   484,189.89

  	
   

  	
   

  	
   

  
	
  74

  	
   

  	
  $

  	
   475,205.92

  	
   

  	
   

  	
   

  
	
  75

  	
   

  	
  $

  	
   466,169.54

  	
   

  	
   

  	
   

  
	
  76

  	
   

  	
  $

  	
   457,080.45

  	
   

  	
   

  	
   

  
	
  77

  	
   

  	
  $

  	
   447,938.34

  	
   

  	
   

  	
   

  
	
  78

  	
   

  	
  $

  	
   438,742.89

  	
   

  	
   

  	
   

  
	
  79

  	
   

  	
  $

  	
   429,493.81

  	
   

  	
   

  	
   

  
	
  80

  	
   

  	
  $

  	
   420,190.78

  	
   

  	
   

  	
   

  
	
  81

  	
   

  	
  $

  	
   410,833.48

  	
   

  	
   

  	
   

  
	
  82

  	
   

  	
  $

  	
   401,421.59

  	
   

  	
   

  	
   

  
	
  83

  	
   

  	
  $

  	
   391,954.80

  	
   

  	
   

  	
   

  
	
  84

  	
   

  	
  $

  	
   382,432.79

  	
   

  	
   

  	
   

  
	
  85

  	
   

  	
  $

  	
   372,855.24

  	
   

  	
   

  	
   

  
	
  86

  	
   

  	
  $

  	
   363,221.81

  	
   

  	
   

  	
   

  
	
  87

  	
   

  	
  $

  	
   353,532.19

  	
   

  	
   

  	
   

  
	
  88

  	
   

  	
  $

  	
   343,786.05

  	
   

  	
   

  	
   

  
	
  89

  	
   

  	
  $

  	
   333,923.05

  	
   

  	
   

  	
   

  
	
  90

  	
   

  	
  $

  	
   324,122.87

  	
   

  	
   

  	
   

  
	
  91

  	
   

  	
  $

  	
   314,205.17

  	
   

  	
   

  	
   

  

 

 

F-2

 

 

	
  92

  	
   

  	
  $

  	
  304,229.62

  	
   

  	
   

  
	
  93

  	
   

  	
  $

  	
  294,195.88

  	
   

  	
   

  
	
  94

  	
   

  	
  $

  	
  284,103.61

  	
   

  	
   

  
	
  95

  	
   

  	
  $

  	
  273,952.47

  	
   

  	
   

  
	
  96

  	
   

  	
  $

  	
  263,742.11

  	
   

  	
   

  
	
  97

  	
   

  	
  $

  	
  253,472.19

  	
   

  	
   

  
	
  98

  	
   

  	
  $

  	
  243,142.36

  	
   

  	
   

  
	
  99

  	
   

  	
  $

  	
  232,752.28

  	
   

  	
   

  
	
  100

  	
   

  	
  $

  	
  222,301.59

  	
   

  	
   

  
	
  101

  	
   

  	
  $

  	
  211,789.93

  	
   

  	
   

  
	
  102

  	
   

  	
  $

  	
  201,216.96

  	
   

  	
   

  
	
  103

  	
   

  	
  $

  	
  190,582.31

  	
   

  	
   

  
	
  104

  	
   

  	
  $

  	
  179,885.62

  	
   

  	
   

  
	
  105

  	
   

  	
  $

  	
  169,126.54

  	
   

  	
   

  
	
  106

  	
   

  	
  $

  	
  158,304.70

  	
   

  	
   

  
	
  107

  	
   

  	
  $

  	
  147,419.73

  	
   

  	
   

  
	
  108

  	
   

  	
  $

  	
  136,471.26

  	
   

  	
   

  
	
  109

  	
   

  	
  $

  	
  125,458.93

  	
   

  	
   

  
	
  110

  	
   

  	
  $

  	
  114,382.39

  	
   

  	
   

  
	
  111

  	
   

  	
  $

  	
  103,241.18

  	
   

  	
   

  
	
  112

  	
   

  	
  $

  	
  92,035.00

  	
   

  	
   

  
	
  113

  	
   

  	
  $

  	
  80,763.46

  	
   

  	
   

  
	
  114

  	
   

  	
  $

  	
  69,426.17

  	
   

  	
   

  
	
  115

  	
   

  	
  $

  	
  58,022.74

  	
   

  	
   

  
	
  116

  	
   

  	
  $

  	
  46,552.79

  	
   

  	
   

  
	
  117

  	
   

  	
  $

  	
  35,015.93

  	
   

  	
   

  
	
  118

  	
   

  	
  $

  	
  23,411.78

  	
   

  	
   

  
	
  119

  	
   

  	
  $

  	
  11,739.93

  	
   

  	
   

  
	
  120

  	
   

  	
  —

  	
   

  	
   

  

 

 

F-3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}]]