Document:

<PAGE>

                                                                   Exhibit 10.17

                                  TECHCOLUMBUS

                               SUBLEASE AGREEMENT

     This Sublease Agreement ("Sublease") is made this 2nd day of August, 2006
between TECHCOLUMBUS, an Ohio not-for-profit corporation ("Sublessor"), and
METAMATERIA PARTNERS, LLC. ("Subtenant").

     1. LEASE OF PREMISES. In consideration of the rent, the Sublessor subleases
to Subtenant, the space ("Premises"), located at the following address: 1275
Kinnear Road, Columbus, Ohio (the "Real Property"). The Premises consist of
approximately 8287 square feet of space as more particularly described as
suite(s) 130, 133, 135, 136, 137, 237, 239, 241, 255, 257, 274 and 276. (see
exhibit A)

     This Sublease is subject and subordinate to a certain lease dated January
18, 1994 between the Ohio State University, as "Lessor", and Sublessor, as
"Lessee", (the "Main Lease").

     2. PARKING. Client and employee parking is located at the east end of the
building, parking spaces located in the front of the building are reserved for
visitors.

     3. TERM. Subtenant shall lease the Premises for a term of 1 year
(months/years) beginning on July 1, 2006 and ending on June 30, 2007. Sublessor
shall not be liable for failure to deliver the Premises to Subtenant on the
beginning date of this Sublease for reasons beyond Sublessor's control.

     4. RENT/LATE CHARGES/ADDITIONAL RENT.

          A. RENT. Subtenant agrees to pay Sublessor rent at the annual rate of
ONE HUNDRED SIX THOUSAND TWO HUNDRED DOLLARS AND 00/100 ($106,200.00) in equal
monthly payments of EIGHT THOUSAND EIGHT HUNDRED FIFTY DOLLARS AND 00/100
($8,850.00) in advance, on the first day of each calendar month during the term.
In the event that the term agreed to does not begin on the first day of the
month, or end on the last day of the month, the first and/or last monthly rental
payment shall be prorated.

          B. LATE CHARGE. Subtenant agrees to pay Sublessor a late charge of Ten
Dollars ($10.00) per day if the rent is not paid in full by the tenth day of the
month up to maximum of $600.00.

          C. ADDITIONAL RENT. Subtenant agrees to pay all charges incurred for
TechColumbus services furnished by Sublessor as well as any other amounts due to
Sublessor as additional rent, which shall be paid along with the monthly
installments of rent.

     5. USE OF PREMISE. The Premises shall only be used for: Commercial
Development of Proprietary Materials Technology.

     6. SECURITY DEPOSIT. Sublessor acknowledges receipt of a Security Deposit
in the amount of SIX THOUSAND TWO HUNDRED DOLLARS AND 00/100 ($6,200.00) as a
deposit for the

<PAGE>

faithful performance by Subtenant of all its obligations under this Sublease as
well as any extensions or renewals thereof. No interest shall be paid on
Subtenant's Security Deposit.

     7. REPORTS. Subtenant acknowledges that Sublessor provides space and
business incubation services through grants and subsidies from city, state and
other governmental agencies, and such agencies have various funding requirements
and often require periodic information reports, including information as to the
number of new, full time jobs created by Subtenant's business enterprise.
Subtenant further acknowledges that Subtenant's admission, graduation, and
reporting guidelines as described in Exhibit B and will require periodic
reporting of business status in areas of planning and finance. Subtenant agrees
to provide such information as required by Sublessor in a timely and accurate
manner, and acknowledges that this Sublease is not binding upon Sublessor if
Subtenant does not qualify for the funding programs of the various governmental
agencies in which Sublessor participates.

     8. SUCCESS OR FAILURE OF SUBTENANT'S BUSINESS. Subtenant specifically
recognizes and acknowledges that the business venture to be undertaken by
Subtenant under this Sublease depends upon the ability of Subtenant as an
independent businessperson, as well as other factors, such as market and
economic conditions beyond the control of Sublessor and Subtenant. Subtenant
acknowledges that success or failure of Subtenant's business enterprise will be
dependent on business acumen and diligence of Subtenant. Subtenant agrees that
success or failure of Subtenant's business will not depend on Sublessor's
performance under this Sublease Agreement, and Sublessor makes no representation
or warranties as to the success of Subtenant's business.

     9. RULES AND REGULATIONS. Subtenant shall observe any rules and regulations
regarding the Premises, which are enforceable against Sublessor under the Main
Lease. Sublessor shall provide a copy of any such rules and regulations to
Subtenant within 5 days after receipt by Sublessor. Failure to enforce any rules
and regulations shall not constitute a waiver thereof. It shall be Subtenant's
obligation to see that Subtenant's employees, invitees and agents obey such
rules and regulations.

     10. SUBTENANT'S PROPERTY. All fixtures, furnishings, equipment, inventory
and other personal property at any time located upon the Premises, whether such
property is owned by Subtenant, Sublessor or any other person, and any
additions, alterations and improvements to the Premises made by Subtenant shall
be kept and maintained by Subtenant at its sole risk, and Subtenant shall bear
all cost, loss and expense for any casualty or theft risk in connection with
such fixtures, furnishings, equipment, inventory and other personal property.
Subtenant shall indemnify and save and hold harmless Sublessor from and against
any and all loss, cost and expense, including but not limited to reasonable
attorney fees, by reason of any damage to or destruction of any fixtures,
furnishings, equipment, inventory and other personal property and any such
additions, alterations and improvements made to the Premises by Subtenant.
Sublessor will, however, be responsible for any damage to the personal property
of Subtenant or its invitees or clients, while such property is in the Premises,
which results from the negligent act or omission of Sublessor's employees or
agents while acting within the scope of their employment.

                                       2

<PAGE>

     11. SUBTENANT ALTERATIONS, INSTALLATIONS AND CHANGES IN PREMISES. Sublessor
and Subtenant shall comply with all applicable provisions of Ohio Revised Code
Chapter 4115, entitled Wages and Hours on Public Works, and with the Americans
with Disabilities Act of 1990 (ADA), 42 U.S.C. section 12131.

     Subtenant shall not, without the prior written consent of Sublessor and the
Lessor under the Main Lease ("Lessor"), make any additions, alterations or
improvements (other than routine interior redecoration such as painting and
wallpapering) in or to the Premises, including but not limited to the
installation of fixtures, appliances or equipment, or the changing of the
Premises or any part thereof. Prior to the commencement of any permitted
additions, alterations or improvements to the Premises, Subtenant shall submit
plans and specifications therefore to Sublessor for its approval in writing,
which shall not unreasonably be withheld. Said additions, alterations or
improvements shall be made in a good and workmanlike manner, in accordance with
the said plans and specifications therefore and in compliance with all
applicable statutes, ordinances, rules and regulations. Sublessor may, but shall
not be obligated to, inspect such additions, alterations or improvements, which
Subtenant shall make to the Premises. Subtenant shall pay all costs of making
any additions, alterations or improvements and shall agree to keep the leased
Premises free from any liens, claims or encumbrances, and shall indemnify and
save Sublessor harmless from and against all loss, cost and expense, including
but not limited to reasonable attorney's fees, arising out of Subtenant's
additions, alterations or improvements.

     All additions, alterations and improvements made by Subtenant shall become
the property of Sublessor (or Lessor, as provided in the Main Lease) upon the
expiration or termination of this Sublease; provided, however, that Sublessor
may, at its option and in accordance with Section 26 below, require Subtenant to
remove, at Subtenant's sole cost and expense, any such additions, alterations
and improvements at the end of the Sublease term or any renewal thereto.

     12. MAINTENANCE AND REPAIR. Subtenant shall not damage the Premises and
shall keep and maintain the interior of the Premises and all additions,
alterations, and improvements thereto in good condition and repair, including
but not limited to the exterior doors, windows and window frames, custodial
services, carpet cleaning, window washing, other minor interior repairs and
maintenance, bulb replacement, and reasonable periodic painting as determined by
Sublessor. Subtenant shall, further, keep the Premises in a clean, safe and
healthy condition free of insects, rodents, termites, vermin and other pests so
as to conform to all lawful requirements, laws and ordinances and directions of
the proper public authorities. In the event any portion of the Premises shall be
damaged because of improvements installed by Subtenant or through the fault or
neglect of Subtenant, Subtenant shall promptly and properly repair such damages
at its cost even though it involves foundation or structural repairs. If
Subtenant refuses or neglects to commence or complete said repairs and/or
replacements promptly and adequately, Sublessor may, but shall not be required
to, make or complete said repairs and replacements and Subtenant shall pay the
costs thereof to Sublessor upon demand.

     Subtenant shall coordinate its trash removal with the Sublessor and shall
deposit its ordinary trash and refuse in the trash dumpster provided by the
Sublessor (or Lessor, as the case may be). Subtenant shall be responsible for
the collection, storage, and disposal of its extraordinary trash and refuse
including, but not limited to, bio-hazardous materials, chemicals,

                                       3

<PAGE>

and low-level nuclear materials as provided in Section 23. Said collection,
storage, and disposal shall be in accordance with Section 5 hereof and subject
to the general direction of The Ohio State University's Office of Environmental
and Occupational Health and Safety.

     All repairs and replacements made by Subtenant shall be equal or better in
quality to the original work. If Subtenant refuses or neglects to commence or
complete repairs and/or replacements for which Subtenant is responsible,
promptly and adequately, Sublessor may, but shall not be required to, make or
complete said repairs and replacements, and Subtenant shall pay the costs
thereof to Sublessor immediately upon Sublessor giving notice of same to
Subtenant; provided, however, that no such action by Sublessor shall in any way
be deemed to be a waiver by Sublessor of any right Sublessor may have hereunder
on account of any default by Subtenant.

     13. MECHANIC'S LIENS. If, as a result of any such additions, alterations,
improvements, repairs or replacements (hereinafter in this section referred to
as the "construction"), the Premises or any part thereof shall at any time
during the Sublease term or any renewal term thereof, become subject to any
vendor's, mechanic's, laborer's, materialmen's or other similar liens based upon
furnishing of materials or labor to the Premises and not contracted for by
Sublessor or Lessor, Subtenant shall cause the same to be discharges at its sole
cost and expense within 45 days after Subtenant shall have actual notice of the
existence thereof. If such liens are not discharged within said 45-day period,
Sublessor may at any time thereafter while the lien remains undischarged,
repossess the Premises and enjoy the same as if the Sublease had not been made,
and thereupon Subtenant's rights under this Sublease shall terminate, without
prejudice, however, to any of the rights of Sublessor, including recovery from
Subtenant of all rent reserved hereunder, which will thereupon accelerate and
become immediately due and payable. The foregoing notwithstanding, Subtenant
agrees that in the event any such liens are filed, they shall affect only the
leasehold estate vested in Subtenant and shall in no way affect the leasehold
estate vested in Sublessor or Lessor's fee simple ownership of the Premises.

     14. DAMAGE OR DESTRUCTION. If the Premises shall be so damaged or destroyed
by fire or other casualty that the same, in the opinion of Sublessor (or Lessor,
as the case may be), are untenantable, the Sublessor shall have the right to
terminate this Sublease effective as of the date of such damage or destruction,
which option shall be exercised, if at all, by Sublessor giving Subtenant
written notice of same within thirty (30) days after such damage or destruction
if reasonably possible. If this Sublease shall be terminated in accordance with
this section, the rent hereunder shall be apportioned to the date of such damage
or destruction, and Subtenant shall immediately surrender and deliver up the
Premises to Sublessor. If Sublessor elects not to terminate this Sublease in
accordance with this section, provided, however, that the Main Lease is not
terminated by Lessor, the rent hereunder shall abate from the date of such
damage or destruction to the date the Premises are again tenantable. In such
event, Sublessor shall use its best efforts to enforce the provisions of the
Main Lease requiring Lessor to promptly repair or rebuild the Premises (except
such fixtures, furnishings, equipment and tenant improvements as shall have been
installed by Subtenant), and this Sublease shall remain in full force and
effect.

     If the Premises shall be so damaged by fire or other casualty that the
Premises (exclusive of such fixtures, furnishings, equipment and tenant
improvements as shall have been installed by

                                       4

<PAGE>

Subtenant), in the sole opinion of Sublessor, is not thereby rendered
untenantable, provided, however, that the Main Lease is not terminated by
Lessor, then Sublessor shall use its best efforts to enforce the provisions of
the Main Lease requiring Lessor to promptly repair the Premises (except such
fixtures, furnishings, equipment and tenant improvements as shall have been
installed by Subtenant), and this Sublease shall remain in full force and
effect; provided, however, that until such repairs have been completed, the rent
shall be reduced by the same proportion as that proportion of the Premises that
in the sole reasonable opinion of Sublessor is untenantable. All decisions of
Sublessor in accordance with this section shall be final and shall be binding
upon Subtenant.

     Anything in this section to the contrary notwithstanding, if any of the
said damage or destruction shall have been caused by the willful or negligent
act or omission of Subtenant, no right or obligation of Sublessor under this
section nor the exercise of any such right or the performance of any such
obligation shall prejudice or be deemed to constitute a waiver of any rights or
claims Sublessor may have against Subtenant by reason of such willful or
negligent act of omission by Subtenant.

     15. SUBTENANT'S CASUALTY INSURANCE. During the term of this Sublease,
Subtenant, shall, at its sole cost and expense, carry and maintain for the
mutual benefit of itself and Sublessor, a policy of fire and extended coverage
insurance insuring all fixtures, furnishings, equipment inventory and other
personal property at any time located upon the Premises, against damage and
destruction by all causes generally insured against in policies of fire and
extended coverage insurance written on properties in Franklin County, Ohio, in
the amount of 80% of the full insurable value thereof, as determined by the
insurance company issuing such policy of insurance. Such policy of insurance
shall bear an endorsement to the effect that the insurer agrees to notify
Sublessor not less than ten (10) days in advance of any modification or
cancellation thereof. Such policy of insurance shall be issued by an insurance
company and shall be in form acceptable to Sublessor. Upon the execution hereof,
Subtenant shall deposit with Sublessor such policy of insurance or a certificate
thereof. Not less than ten (10) days prior to the due date for the payment of
premiums upon such policy of insurance, Subtenant shall deposit with Sublessor
evidence satisfactory to Sublessor of the payment of such premiums. Not less
than ten (10) days prior to the termination date of such policy of insurance,
Subtenant shall deposit with Sublessor evidence satisfactory to Sublessor of the
renewal of such policy of insurance. Sublessor's failure to receive or demand
any evidence of insurance required herein, however, shall in no way diminish or
affect Subtenant's obligation to obtain such insurance.

     Subtenant shall cause each insurance policy carried by it pursuant to this
Sublease to be written in such a manner so as to provided that insurer waives
all right of recovery by way of subrogation against Sublessor in connection with
any loss or damage covered by the policy. If Subtenant fails to procure such
waiver, it will indemnify Sublessor for all moneys to which any subrogor
hereunder becomes entitled and the cost of reasonable attorney's fees of any
claim for subrogation.

     16. LIABILITY INSURANCE. During the initial and any additional term of this
Sublease, Subtenant shall at its sole cost and expense, carry and maintain, for
the mutual benefit of itself, Sublessor and its officers, agents and employees,
a policy of general liability insurance against claims for personal injuries,
wrongful death or property damage occurring on or about

                                       5

<PAGE>

the Premises with minimum amount of coverage of One Million Dollars
($1,000,000.00) on account of bodily injury and/or death of persons and/or on
account of damage to property. Subtenant agrees to deposit said policy or
policies (or certificates thereof) with Sublessor prior to the date of occupancy
by Subtenant, said policy or policies naming as insured both Subtenant and
Sublessor. Such policy of insurance shall be issued by an insurance company
acceptable to Sublessor, and shall bear an endorsement to the effect that the
insurer agrees to notify Sublessor not less than ten (10) days in advance of any
modification or cancellation thereof. Not less than ten (10) days prior to the
termination date of such policy of insurance, Subtenant shall deposit with
Sublessor evidence satisfactory to Sublessor of the renewal of such policy of
insurance. Sublessor's failure to demand or request a Certificate of Insurance
shall not affect Subtenant's obligation to obtain and maintain the required
insurance. Subtenant shall cause to be issued and shall maintain during the term
of this Sublease such Workers' Compensation and disability insurance as may,
from time to time, be required by city, county, state or federal laws. Evidence
of such insurance shall be delivered to Sublessor prior to the date of occupancy
by Subtenant, and thereafter, at such times as Sublessor may require.

     17. UTILITIES. Subtenant shall be responsible for telephone and data
communications installation and usage charges. Sublessor shall not be
responsible for the quality, quantity, interruption or failure in the supply of
any utility to the Premises when said supply is so affected as a result of
conditions beyond the control of Sublessor. Sublessor shall use its best efforts
to enforce the provisions of the Main Lease requiring Lessor to provide all
other utilities.

     18. ASSIGNMENT AND SUBLETTING BY SUBTENANT. Subtenant shall not, without
the prior written consent of Sublessor and Lessor, assign or transfer its
interests under this Sublease in whole or in part or sublet all or any part of
the Premises. If Subtenant is a corporation, any transfer of this Sublease from
Subtenant by merger, consolidation or liquidation shall constitute an assignment
for the purpose of this Sublease and shall require the written consent of
Sublessor and Lessor. Sublessor shall not unreasonably withhold consent to any
such assignment, sublet or transfer. Any consent by Sublessor to any assignment
or subletting shall not constitute a waiver of the necessity of such consent to
any subsequent assignment or subletting. Each assignee or transferee shall
assume and be deemed to have assumed this Sublease and shall remain liable
jointly and severally with Subtenant for the payment of all rent and for the due
performance of all the terms, covenants, conditions and agreements herein
contained on Subtenant's part to be paid and performed for the term of this
Sublease. No assignment shall be binding on Sublessor unless such assignee or
Subtenant shall deliver to Sublessor a counterpart of such assignment and
instrument in recordable form which contains a covenant of assumption by the
assignee. No assignment or subletting by Subtenant with the consent of Sublessor
and Lessor shall relieve Subtenant of its obligations hereunder unless Sublessor
and Lessor expressly so agree in writing.

     19. INDEMNIFICATION. Subtenant shall indemnify and save and hold harmless
Sublessor and its officers, trustees, agents and employees from and against any
and all loss, liability, damage, cost and expense, including but not limited to
reasonable attorney fees, for injury, death, loss or damage of whatever nature
to any person, property or any other claim by Subtenant or its officers,
employees, agents, customers, licensees, invitees or any other person, firm or
corporation resulting from the Subtenant's occupancy or use of the Premises. In
the

                                       6

<PAGE>

event that any action or proceeding is instituted against Sublessor by reason of
any such claim or event, Subtenant shall resist and defend such action or
proceeding at Subtenant's sole cost and expense or cause it to be resisted and
defended by an insurer. Notwithstanding the foregoing, Sublessor shall be
responsible for any liability that results from the negligent, reckless or
intentional act or omission or its employees or agents while they are acting
within the scope of their employment.

     20. SUBLESSOR'S LIEN FOR RENT. Subtenant hereby grants a lien, to
Sublessor, of Subtenant's interest in all improvements, fixtures or personal
property on the Premises. In the event Subtenant fails to cure default under
this Sublease, Subtenant authorizes Sublessor to take possession of the property
free and clear of Subtenant's interest therein.

     21. SUBORDINATION AND EARLY TERMINATION. Subtenant agrees that this
Sublease and Subtenant's interest in this shall be secondary to any mortgage,
deed of trust or other method of financing or refinancing now or hereafter
placed on the Premises, the property, the land underlying the Premises and/or
the building of which the Premises is a part. Subtenant further agrees that it
will execute and deliver any and all documents necessary to show that
Subtenant's rights are secondary under this Sublease.

     If the Main Lease is terminated, this Sublease shall be terminated as well,
in which case, Subtenant shall pay all rent due and perform and observe all of
the covenants hereof up to the time of vacation by Subtenant, and neither
Sublessor nor Subtenant shall have a claim against the other for damages for
such early termination.

     22. HOLDING OVER. Should Subtenant hold over after the term of this
Sublease expires, Subtenant shall become a Subtenant on a month-to-month basis
upon all of the terms and conditions specified in this Sublease.

     23. HAZARDOUS SUBSTANCES.

          A. SUBLESSOR'S CONSENT REQUIRED. Subtenant shall not cause or permit
any Hazardous Substances, as defined below, to be brought upon or kept or used
in or about the Premises and the Property (the "Real Property") by Subtenant,
its agents, employees, contractors or invitees, unless (a) such hazardous
Substances are necessary for Subtenant's business (and such business is a
permitted use under Section 5) and (b) Subtenant first obtains the written
consent of Sublessor.

          B. COMPLIANCE WITH ENVIRONMENTAL LAWS. Subtenant shall at all times
and in all respects comply with all local, state and federal laws, ordinances,
regulations and orders (collectively, "Hazardous Substances Laws") relating to
industrial hygiene, environmental protection, or the use, analysis, generation,
manufacture, storage, disposal, or transportation of any Hazardous Substances.

          C. HAZARDOUS SUBSTANCES HANDLING. Subtenant shall at its own expense
procure, maintain in effect and comply with all conditions of any and all
permits, licenses and other governmental and regulatory approvals required for
Subtenant's use of the Premises, including, without limitation, discharge of
(appropriately treated) materials or wastes into or through any sanitary sewer
serving the Real Property. Except as discharged into the

                                       7

<PAGE>

sanitary sewer in strict accordance and conformity with all applicable Hazardous
Substances Laws and only with the proper written consent of the Sublessor,
Subtenant shall cause any and all Hazardous Substances removed from the Premises
(or from the Real Property, if at Subtenant's direction) to be removed and
transported solely by duly licensed haulers to duly licensed facilities for
final disposal of such materials and wastes. Subtenant shall in all respects
handle, treat, deal with, and manage any and all Hazardous Substances in, on,
under, or about the Real Property in total conformity with all applicable
Hazardous Substances Laws and prudent industry practices regarding management of
such Hazardous Substances. Upon expiration or earlier termination of the term of
the Sublease, Subtenant shall cause all Hazardous Substances to be removed from
the Premises (except such Hazardous Substances, if any, as were located in the
Premises prior to the commencement of Subtenant's occupancy thereof) and the
Real Property (if Subtenant caused such Hazardous Substances to be located on
the Real Property) and to be transported for use, storage or disposal in
accordance and compliance with all applicable Hazardous Substances Laws;
provided, however, that Subtenant shall not take any remedial action in response
to the presence of any Hazardous Substances in or about the Premises, or the
Real Property, nor enter into any settlement agreement, consent, decree, or
other compromise in respect to any claims relating to any Hazardous Substances
in any way connected with the Premises or the Real Property, without first
notifying Sublessor of Subtenant's intention to do so and affording Sublessor
ample opportunity to appear, intervene, or otherwise appropriately assert and
protect Sublessor's interest with respect thereto.

          D. NOTICES. If at any time Subtenant shall become aware, or have
reasonable cause to believe, that any Hazardous Substance has come to be located
on or beneath the Real Property, Subtenant shall, immediately upon discovering
such presence or suspected presence of the Hazardous substance, give written
notice of that condition to Sublessor. In addition, Subtenant shall immediately
notify Sublessor in writing of (i) any enforcement, cleanup, removal or other
governmental or regulatory action instituted, completed or threatened pursuant
to any Hazardous Substances Laws, (ii) any claim made or threatened by any
person against Subtenant, the Premises or the Real Property relating to damage,
contribution, cost recovery, compensation, loss or injury resulting from or
claimed to result from any Hazardous Substances and (iii) any reports made to
any local, state, or federal environmental agency, fire and safety agency or
board of health arising out of or in connection with any Hazardous Substances in
or removed from the Premises of the Real Property, including any complaints,
notices, warnings, or asserted violations in connection therewith. Subtenant
shall also supply to Sublessor as promptly as possible, and in any event within
five (5) business days after Subtenant first receives or sends the same, copies
of all claims, reports, complaints, notices, warnings, or asserted violations
relating in any way to the Premises, the Real Property, or Subtenant's use
thereof. Subtenant shall promptly deliver to Sublessor copies of hazardous waste
manifests reflecting the legal and proper disposal of all Hazardous Substances
removed from the Premises or the Real Property.

          E. DEFINITION OF HAZARDOUS SUBSTANCES. As used in this Sublease, the
term "Hazardous Substance or Substances" means any hazardous or toxic
substances, materials or wastes, including, but not limited to, those
substances, materials, and wastes listed in the United States Department of
Transportation Hazardous Materials Table (459 CFR 172.101) or by the
Environmental Protection Agency as hazardous substances, (40 CFR Part 302) and
amendments thereto, or such substances, materials and wastes which are or become
regulated under any applicable local, state or federal law including without
limitation,

                                       8

<PAGE>

any materials, waste or substance which is (i) petroleum, (ii) asbestos, (iii)
polychlorinated biphenyls, (iv) defined as a "hazardous waste" under the laws
and regulations of the State of Ohio, (v) defined as a "hazardous substance"
pursuant to Section 311 of the Clean Water Act, 33 U.S.C. 1251, et seq. (33
U.S.C. 1321) or listed pursuant to Section 307 of the Clean Water Act (33 U.S.C.
1317), (vi) defined as a "hazardous waste" pursuant to Section 1004 of the
Resource Conservation and Recovery Act, 42 U.S.C. 6901, (42 U.S.C. 6903) or
(vii) defined as a "hazardous substance" pursuant to Section 101 of the
Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C.
9601, et seq. (42 U.S.C. 9601).

          F. INDEMNIFICATION OF SUBLESSOR. Subtenant shall indemnify, defend (by
counsel acceptable to Sublessor), protect, and hold harmless Sublessor, and each
of Sublessor's trustees, officers, and assigns, from and against any and all
claims, liabilities, penalties, fines, judgments, forfeitures, losses
(including, without limitation, diminution in the value of the Premises or the
Real Property), damages for the loss or restriction on use of rentable or usable
space or of any the expiration or earlier termination of the term of the
Sublease. For purposes of the release and indemnity provisions hereof, any acts
or omissions of Subtenant, or by employees, agents, assignees, contractors, or
subcontractors of Subtenant or others acting for or on behalf of Subtenant
(whether or not they are negligent, intentional, willful, or unlawful), shall be
strictly attributable to Subtenant.

          G. SUBLESSOR ENVIRONMENTAL COMPLIANCE COSTS. Sublessor and Subtenant
acknowledge that Sublessor may become legally liable for costs of complying with
Hazardous Substances Laws that are not the responsibility of Subtenant pursuant
to Subsection F, including the following:

          (i) Hazardous Substances present in the soil or ground water on the
          Property of which Sublessor has no knowledge as of the date hereof;
          (ii) a change in Hazardous Substance Laws making certain Hazardous
          Substances that are present on the Real Property as of the date
          hereof, whether known or unknown to Sublessor, a violation of such new
          Laws; (iii) Hazardous Substances that migrate, flow, percolate,
          diffuse, or in any way move onto or under the Real Property after the
          date hereof; (iv) Hazardous Substances present on or under the Real
          Property as a result of any discharge, dumping, or spilling (whether
          accidental or otherwise) on the Real Property by other lessees of the
          Real Property or their agents, employees, contractors, or invitees, or
          by others. Accordingly, Sublessor and Subtenant agrees that the cost
          of complying with Hazardous Substances Laws on the Real Property for
          which Sublessor is legally liable and that are paid or incurred by
          Sublessor shall not be charged to Subtenant as any other charge. In
          the event the Premises becomes uninhabitable, as so determined by a
          government agency, for a period in excess of 30 days due to the
          presence of a Hazardous Substance in violation of the Hazardous
          Substances Laws and the Sublessor is responsible for the presence of
          such Hazardous Substance, then the Sublease shall terminate and the
          Sublessor shall not be liable to the Subtenant for any damages or
          costs whatsoever resulting from such early termination.

          H. WITHHOLDING CONSENT TO PROPOSED TRANFEREES. Subtenant acknowledges
and agrees that it shall not be unreasonable for Sublessor to withhold its

                                       9

<PAGE>

consent to any proposed assignment, subletting, or transfer of Subtenant's
interest in the Sublease if (i) the anticipated use of the Premises by the
proposed assignee, subtenant, or transferee (collectively, a "Transferee")
involves the generation, storage, use, treatment, or disposal of Hazardous
Substances; (ii) the proposed Transferee has been required by any prior lessor,
lender, or governmental authority to make remedial action in connection with
Hazardous Substances contaminating a property, if the contamination resulted
from such Transferee's actions or use of the property in question; or (iii) the
proposed Transferee is subject to an enforcement order issued by any
governmental authority in connection with the use, disposal, or storage of a
Hazardous Substance. Subtenant acknowledges and agrees that this section shall
not be interpreted to modify the section of the Sublease restricting assignment,
subletting or transfer of the Subtenant's interest in the Sublease, including
implying that such consent cannot be unreasonably withheld.

          I. ADDITIONAL INSURANCE OR FINANCIAL CAPACITY. If at anytime it
reasonably appears to Sublessor that Subtenant is not maintaining sufficient
insurance or other means of financial capacity to enable Subtenant to fulfill
its obligations to Sublessor pursuant to this Section 23, whether or not then
accrued, liquidated, conditional, or contingent, Subtenant shall procure and
thereafter maintain in full force and effect such insurance or other form of
financial assurance, with or from companies or persons and in forms reasonably
acceptable to Sublessor, as Sublessor may from time to time reasonably request.
Furthermore, any firm retained by Subtenant to remove Hazardous Substances from
the Premises or the Real Property must provide to the Sublessor a certificate of
insurance designation public liability, comprehensive auto insurance and
environmental impairment liability (or compliance with federal responsibility
requirements) with limits to be approved by the Sublessor in each individual
case.

     24. ACCESS TO PREMISES. Sublessor and Lessor shall have the right to enter
upon the Premises at all reasonable times for all reasonable purposes. Except in
cases of emergency, Sublessor shall make reasonable efforts, but shall not be
required, to give 24 hours advance notice of its intent to enter the Premises.

     25. SURRENDER OF PREMISES,. Upon the expiration of this Sublease, or any
extension thereof, or its termination in any way, Subtenant shall surrender and
deliver up the Premises broom clean and in as good order and condition as the
same shall have been at the commencement of the initial term of this Sublease,
or shall have been put by Subtenant and/or Sublessor, except for reasonable wear
and tear, repairs and replacements that Sublessor is required to make and loss
by fire or other casualty, and deliver the keys to Sublessor and inform
Sublessor of all combinations of locks, safes, or vaults, if any.

     Subtenant hereby expressly authorizes Sublessor as agent of Subtenant to
remove such debris and make such changes and repairs as may be necessary to
restore the Premises to such condition at the expense of Subtenant without
notice to Subtenant, in the event that this covenant and other covenants of this
Sublease on the part of the Subtenant in respect to repair are not complied with
at the termination of this Sublease, the intent being that the agreement
respecting damages suffered by Sublessor through the breach of said covenants
shall survive the termination of this Sublease.

                                       10

<PAGE>

     26. RESTORATION OF PREMISES. Upon the expiration or termination of this
Sublease or any extension thereof, whether due to default or otherwise,
Sublessor shall have the option to have any additions, alterations, and
improvements made to the Premises in accordance with Section 11 hereof removed
and the Premises restored to the condition in which they were delivered to
Subtenant at the beginning of the term of this Sublease. Upon notice to
Subtenant from Sublessor of Sublessor's decision to exercise its option to have
the additions, alterations, and improvements removed and the Premises restored,
Subtenant shall cause the same to be done, at Subtenant's sole expense, no later
than forty-five (45) days after the expiration of Subtenant's leasehold estate.
Sublessor's exercise of this option shall not affect Subtenant's obligations
under Section 25 of the Sublease.

     If this Sublease is terminated due to default by Subtenant, then the notice
required from Sublessor to Subtenant under this section shall be served with
Sublessor's notice of default required under Section 27 hereof. Should
termination of the Sublease result from the expiration of the term or any
renewal term of the Sublease, Sublessor shall notify Subtenant of Sublessor's
decision to exercise its option to have the additions, alterations, and
improvements removed and the Premises restored at least sixty (60) days before
the date on which Subtenant's leasehold estate will expire.

     Should Subtenant fail to cause the additions, alterations, and improvements
to be removed and the Premises restored with forty-five (45) days after
expiration of Subtenant's leasehold, Sublessor may, but shall not be required
to, cause the same to be done, and Subtenant shall pay the costs thereof to
Sublessor immediately upon Sublessor's giving notice of the same to Subtenant.
No such action by Sublessor shall in any way be deemed to be a waiver by
Sublessor of any right Sublessor may have hereunder on account of any default by
Subtenant.

     27. DEFAULT. If the said rent or any part thereof shall at any time be in
arrears and remain unpaid for a period of ten (10) days after Sublessor shall
have given notice of same to Subtenant, or if Subtenant shall default in
performance of any of the other terms, covenants or conditions of this Sublease
and such default shall continue for a period of twenty (20) days after Sublessor
shall have given notice thereof to Subtenant, during which period Subtenant
shall not have proceeded forthwith to remedy such default and prosecuted such
effort diligently until such default shall have been remedied, or if Subtenant
shall make an assignment for the benefit of creditors, be adjudged a bankrupt,
suffer a receiver or trustee to be appointed in any action or proceeding by or
against Subtenant and fail to secure the discharge of such receiver or trustee
within forty-five (45) days following such appointment, or if Subtenant shall
make an application for an arrangement or reorganization under the bankruptcy
laws of the United States, or if Subtenant shall abandon or vacate the Premises,
then and in any such cases, it shall be lawful for Sublessor to enter into the
Premises and again have, repossess and enjoy the same as if this Sublease had
not been made, and thereupon this Sublease and everything contained herein on
the part of Sublessor to be done and performed shall cease, terminate and be
utterly void, without prejudice however to the rights of Sublessor and
obligations of Subtenant (including Sublessor's right to recover from Subtenant
all rent reserved hereunder which will thereupon accelerate and become
immediately due and payable). Sublessor shall be responsible for any damages to
the personal property of Subtenant that both occurs during any such re-entry and
results from the negligent, reckless or intentional act or omission of
Sublessor's employees or agents while they are acting with the scope of their
employment. In the event of acceleration, the total of all

                                       11

<PAGE>

remaining rents to be paid by Subtenant will be discounted to present value
using the ten-existing rate for one-year Treasury Bills. The commencement of a
proceeding or suit in forcible entry and detainer or in ejectment or otherwise
after any default by Subtenant shall be equivalent in every respect to actual
entry by Sublessor, and in case of such default by Subtenant and entry by
Sublessor, Sublessor may, but shall not be obligated to, re-let the Premises.

     It shall be a default under and breach of this Sublease by Sublessor if
Sublessor shall fail to perform or observe any term, condition, covenant or
obligation required to be performed or observed by it under this Sublease for a
period of thirty (30) days after notice thereof from Subtenant; provided,
however, that if the term, condition, covenant or obligation to be performed is
of such nature that the same cannot reasonably be performed within such 30-day
period, such default shall be deemed to have been cured if Sublessor commences
such performance within said 30-day period and thereafter diligently undertakes
to complete the same. Upon the occurrence any such default by Sublessor,
Subtenant may (i) take or commence any action to enforce this Sublease that is
permitted under Ohio law, (ii) cure the default and, if such cure required
Subtenant to make any payment deduct any reasonable such payment from
Subtenant's future rent payments to Sublessor, notwithstanding Section 4 of this
Sublease, or (iii) terminate this Sublease, immediately surrender the Premises
to Sublessor and cease paying rent hereunder.

     28. RELATIONSHIP OF SUBLESSOR AND SUBTENANT. Subtenant shall not use any
trademark, service mark or trade name of Sublessor, not shall Subtenant hold
itself out as having any business affiliation with Sublessor without having
specific written consent from Sublessor.

     29. ESTOPPEL CERTIFICATE. Subtenant will execute, acknowledge, and deliver
to Sublessor or any proposed mortgagee or purchaser a certificate by tenant
which confirms the terms and conditions of this Sublease with five (5) days of a
written request by Sublessor.

     30. NO WAIVER OF BREACH. Any failure or neglect by Sublessor to assert or
enforce any rights or remedies because of any breach or default by Subtenant
under this Sublease shall not (except as to those specific instances when
express time limits are provided for taking action) prejudice Sublessor's rights
or remedies with respect to any existing or subsequent breaches or defaults.
Acceptance of any partial payment from Subtenant will not waive Sublessor's
right to pursue Subtenant for any remaining balance due nor shall any
endorsement or statement on any check or any letter which acknowledges a check
or payment of rent be deemed an accord or satisfaction.

     31. TERMINATION BY COURT ORDER. In the event this Sublease is determined in
any court action to be in violation of any state law, Subtenant shall vacate the
Premises as soon as possible, not look to Sublessor for recovery of any damages
or reimbursement of expenses of any kind or of any rent paid hereunder and, upon
vacating the Premises, pay all unpaid rent accruing to the time of such
vacation.

     32. SIGNS. Subtenant will not place or cause to be placed or maintained on
the exterior of the Premises, any sign, advertising matter or other thing of any
kind and will not place or maintain any decoration, lettering or advertising
matter on the glass of any window or door of the Premises without first
obtaining written approval from Sublessor and Lessor, and

                                       12

<PAGE>

Subtenant will maintain such sign, decoration, lettering, advertising matter or
other thing as may be approved in good condition and repair at all times.
Subtenant shall comply with all laws, ordinances, and regulations which shall
apply to said signs.

     33. ACTS BEYOND CONTROL OF EITHER PARTY. In the event that either party
shall be delayed or hindered or prevented from the performance of any act
required hereunder by reason of strikes, lock-outs, labor troubles, inability to
procure materials, failure of power, inadequate power, restrictive governmental
laws or regulations, severe weather conditions, disaster, riots, insurrection,
war or other reason of a like nature not the fault of such party in performing
work or doing acts required under the terms of this Sublease, the performance of
such acts shall be excused for the period of the delay. This provision shall not
operate to excuse Subtenant from prompt payment of rent or any other payments
required by the terms of this Sublease.

     34. SUCCESSORS AND ASSIGNS. This Sublease shall be binding upon and shall
inure to the benefit of the respective successors and assigns of Sublessor and
Subtenant.

     35. APPLICABLE LAW. This Sublease shall be governed and construed according
to the laws of the State of Ohio.

     36. NOTICES. Whenever any payment notice, consent, or request is given or
made under this Sublease, it shall be made in writing and delivered in person or
sent by certified mail. Communications and payments to Subtenant shall be
addressed to:

                                 Richard Schorr
                               503 Bellfrey Drive
                              Westerville, OH 43082
                                  614-882-8302
                             jrschon@columbus.n.com

or any other address as may have been specified by prior notice to Sublessor.
Communications and payments to Sublessor shall be addressed to:

                                  TechColumbus
                                1275 Kinnear Road
                              Columbus, Ohio 43212

Checks shall be made payable to the TechColumbus.

     37. ENTIRE AGREEMENTS. This Sublease contains all the agreements and
understandings made between the parties and may only be modified in writing by
the parties or their respective successors in interest.

     38. SEVERABILITY. If any provision of this Sublease shall be invalid, then
the remainder of this Sublease shall not be affected or impaired and shall
remain in full force and effect.

                                       13

<PAGE>

     39. HEADINGS. The headings of the various sections of this Sublease are
inserted only for convenience and for reference and in no way define, limit, or
describe the scope or intent of this Sublease or any of its provisions.

     40. COUNTERPARTS. This Sublease has been executed by the parties in several
counterparts, each of which shall be deemed to be an original copy.

     41. GOVERNMENTAL REGULATIONS. Each party shall comply with all laws,
ordinances and regulations of the Government of the United States, State of
Ohio, and county and municipal authorities applicable to such party with respect
to the use, occupancy, construction, or maintenance of the Premises and site;
provided, however, that Sublessor shall be responsible for ensuring compliance
with the Americans with Disabilities Act and any other similar legislation as it
affects the common areas of the building and Subtenant shall be responsible for
ensuring such compliance as it affects the Premises. These laws, ordinances, and
regulations include (but are not limited to) those prohibiting discrimination
and those requiring payment of "prevailing wages" and participation of minority
businesses in construction of improvements.

     42. NON-DISCRIMINATION. During the term of this Sublease, Subtenant shall
operate the Premises without discrimination as to race, creed, color, age, sex,
religion, national origin or disability with respect to its employees, vendors,
contractors, business invitees, and guests.

     IN WITNESS WHEREOF, the parties have caused this Sublease to be executed as
of the day and year first above written.

SUBLESSOR                               SUBTENANT

TECHCOLUMBUS                            METAMATERIA PARTNERS, LLC

By: /s/ Steven Clark                    By: /s/ Richard Schorr
    ---------------------------------       ------------------------------------
    Steven Clark                            Richard Schorr
    Vice President, Incubation              President
    Services

                                       14

<PAGE>

                                   EXHIBIT "B"

                              ADMISSION GUIDELINES

The TechColumbus is a non-profit organization supported by City of Columbus and
State of Ohio, and has a public obligation to assist development stage
technology-based companies. The Board of Trustees has established a number of
policies to ensure that the Center's services will be fairly distributed to
those who demonstrate the potential to grow and contribute to the employment and
economic advancement of the community.

Candidates for admission must meet the definition of a technology-based company
and must evidence the ability to commercialize a technology-based product,
process or service venture via a business plan.

Candidates for admission must meet the definition of a technology-based company
which is pursuing commercial applications of science-based innovation, employing
technicians, scientists, engineers and business executives; and requiring
extensive commercialization assistance to introduce new products or services to
the market

     1.   It is the policy of TechColumbus that a business plan be submitted to
          the Vice President of Incubation Services.

          The business plan should address:
          Company organization (business description)
          Products and services
          Proprietary technology
          Market assessment and sales forecast
          Status of research and development
          Manufacturing methods
          Financial plan and 3 year forecast
          Sources of capital
          Future financing requirements

          -    Business plan goals will be reviewed quarterly by the Vice
               President and Senior Staff of Incubation Services.

          -    Business plans will be reviewed at least once a year by the Vice
               President and Senior Staff of Incubation Services.

     2.   Establish and maintain an advisory board that is appropriate for the
          Client and which may include members of the TechColumbus staff.

     3.   Submit mutually agreeable financial reports to Incubation Services of
          TechColumbus. These reports shall include an Income Statement, Balance
          Sheet, Sources and Uses of Funds Statement.

<PAGE>

     4.   Participate with TechColumbus in preparing periodic and other reports
          as requested by the Ohio Department of Development, The State of Ohio
          and TechColumbus Board of Trustees.

     5.   Cooperate in co-marketing and joint marketing programs via mutually
          agreeable channels.

     6.   Client shall provide a capitalization table of the shareholders,
          calculated on a fully diluted basis, of the Client's organization
          including the total number of authorized, issued and outstanding
          shares of Client's equity securities.

     7.   It is the policy of the TechColumbus to require lease agreements of
          all tenants.

          A.   Following the initial one year lease, negotiation of a subsequent
               lease is dependent on progress toward the business plan
               objectives, and subject to the approval of the Vice President and
               other Senior Staff of Incubation Services.

          B.   The lease contains clauses stipulating the payment of a security
               deposit with the first month's rent, a penalty for late payment
               of rent, and TechColumbus reserves the right to evict any tenant
               found in violation of the lease agreement.

          C.   Basic services are to be included in the rental agreement to be
               provided by the Business Technology Center per the current "Rent
               and Basic Services" policy.

          D.   Rental rate are described in the "Tenant Rent Structure" policy.

<PAGE>

                              GRADUATION GUIDELINES

It is the intent of these guidelines to frame the expectations regarding the
length of occupancy of the clients of TechColumbus. It is necessary to state
these expectations because TechColumbus is intended to serve as an interim
facility to assist technology-based businesses in the early stages of their
development. TechColumbus must balance its desire to provide each client with
sufficient resources to permit business success with the need to provide as many
entrepreneurs as possible with an opportunity to incubate their businesses.
TechColumbus intends to deal with each client's situation in a flexible manner
and retains the right to consider extenuating circumstances in each case.

     1.   We have an expectation that science and technology-based companies
          will require incubation periods of 3-5 years while companies in more
          market sensitive industries may require only 1-3 years. This is true
          because the former have longer product development cycles resulting
          from the need for clinical evaluations, field trials, regulatory
          approvals, etc.

     2.   During the period of residency in TechColumbus, we will employ a
          process which continually monitors a client's progress against their
          business plan and assists with certain matters of business
          development. This will include, but not be limited to:

          -    A quarterly business reporting system of goals and performance
               against goals including historical and pro forma financial
               statements.

          -    Assistance with identification and creation of a business
               advisory board within the first 18 months of residency.

We recognize that a company's business plan is a dynamic document that is
continually changing. The Incubation Services Committee will formally review
each company's business plan at least once annually in order to determine how
TechColumbus can be of continuing assistance to the client.

     3.   Planning for graduation will take place at a meeting between the
          Client and the Incubation Services Committee. This meeting will
          normally occur at the end of Year 2. At this meeting, both parties
          will work to develop milestones, a timetable, and a list of action
          items that will enable the client to make a smooth transition from
          TechColumbus.

     4.   At the time for graduation approaches, the Incubation Services
          Committee will attempt to assist in the relocation process by
          introducing the client to facilities and sources of support, such as
          OSU's Research Park, the Incubator Without Walls, the Commercial
          Realtors Association, the Chamber of Commerce, etc.

     5.   At the end of the fifth year of occupancy, the Incubation Services
          Committee may grant an extension for an additional year, if there are
          extenuating circumstances that would indicate that a company's chances
          of viability would be significantly

<PAGE>

          enhanced by remaining in the incubator. Rental fees would increase to
          equal commercial rates, unless there were mitigating factors in the
          judgment of the Incubation Services Committee.

     6.   If additional extensions are requested by the client past the sixth
          year, approval by the Board of Directors will be required.<PAGE>

                                                                   Exhibit 10.18

                               SUBLEASE AGREEMENT

     THIS AGREEMENT dated as of the 1st day of October, 2006, by and between
JEFFORDS STEEL SPECIALTY COMPANY INC D/B/A JEFFORDS STEEL AND ENGINEERING
COMPANY, a New York corporation (hereinafter "Landlord") and NANODYNAMICS INC.,
a Delaware corporation, with a place of business in Buffalo, New York
(hereinafter "Tenant").

     WHEREAS, Landlord, as tenant, entered into a Commercial Lease, dated
November 21, 2005, with Waste Stream, Inc., a New York corporation (the
"Owner"), to lease certain real property located on Route 11 in Potsdam, New
York (the "Master Lease"), as more particularly described in Exhibit A to the
Master Lease (the "Premises"), a redacted copy of the Master Lease being
attached hereto as Exhibit A; and

     WHEREAS, Tenant wishes to sublease the Premises from Landlord and Landlord
wishes to sublease the Premises to Tenant upon the terms and conditions
contained herein;

     NOW, THEREFORE, in consideration of the mutual covenants contained herein,
it is agreed between each of the parties hereto as follows:

     Section 1. Demise, Description of Premises. Landlord does hereby demise,
let, rent and lease unto Tenant, and Tenant hereby hires and rents from
Landlord, the Premises, which include a building containing 3,980 rentable
square feet (the "Building") together with ingress and egress to the Building
and parking adjacent thereto for not less than fifteen (15) cars, as leased by
Owner to Landlord pursuant to the Master Lease.

     Section 2. Term of Lease. (A) Said Premises are hereby leased to Tenant,
subject to all of the terms and conditions contained herein, for an initial term
of fourteen (14) months commencing on October 1, 2006 (the "Commencement Date"),
and ending on November 30, 2007, unless said term be sooner terminated as
hereinafter provided.

          (B) Provided that Tenant is not then in default, Tenant shall have the
option to renew this Lease for up to three (3) renewal terms of one (1) year
each on all the same terms and conditions set forth herein by notifying Landlord
of Tenant's option to renew in writing at least ninety (90) days prior to the
expiration of the then current term.

     Section 3. Base Rent and Security Deposit. (A) On the first day of each
month commencing with the month following the Commencement Date, Tenant agrees
to pay to Landlord, without demand or setoff for and during the term of this
Lease Base Rent in an amount equal to One Thousand Nine Hundred Ninety Dollars
($1,990.00) ($6.00 per rentable square foot). Each payment shall be made to
Landlord at the address provided herein for notice to Landlord. In the event
that the Commencement Date occurs on other than the first day of a month, then
the Base Rent for that month shall be prorated for the remaining days of that
month and payable on the Commencement Date. The Base Rent shall be increased by
five percent (5%) as of the beginning of each one (1) year option term elected
by Tenant.

                                       1

<PAGE>

          (B) Security Deposit. Upon the Commencement Date of this Lease, Tenant
shall pay to Landlord a Security Deposit in an amount equal to one month's Base
Rent applicable at the Commencement Date, which payment shall be held by
Landlord as security for the Tenant's performance of its obligations under this
Lease. Said Security Deposit shall be held by Landlord as security for the
payment of rents to come due under, and for the faithful performance by the
Tenant of all the terms, conditions and covenants of the Lease, and for the
payment of any and all sums of money for which the Tenant may become liable to
Landlord. It is expressly covenanted and agreed that the Security Deposit is not
an advance payment of any rent installment that may become due, nor is the
Security Deposit intended to be nor does it constitute a measure of Landlord's
damages in the event of a breach of Tenant hereunder. In the event of a default
by Tenant hereunder, which default remains uncured after such notice, if any, as
may be provided to the Tenant pursuant to the provisions hereof, Landlord may
immediately, or at any time thereafter, and while such default continues, and
without prejudice to any other rights or remedies of the Landlord available at
law, in equity, as provided elsewhere in this Lease or otherwise, apply any or
all of the Security Deposit to satisfy the obligations of the Tenant. Upon
written notice to the Tenant of the application by the Landlord of any or all of
the Security Deposit to satisfy any obligations of the Tenant, Tenant shall
immediately and without further demand pay to the Landlord funds sufficient to
restore the Security Deposit to its original amount. The failure of the Tenant
to maintain the Security Deposit in its original amount shall constitute a
default under this Lease Agreement. In the event of a sublease or assignment by
the Tenant of any or all of the Premises, Landlord shall not be obligated to
release any portion of the Security Deposit to Tenant and may continue to hold
the Security Deposit in the manner set forth herein. In the event that Tenant
shall fully comply with all the terms, conditions and covenants of this Lease,
the Security Deposit and interest earned thereon shall be returned to Tenant
after the time fixed for the expiration of the term hereof and the surrender of
the Premises to the Landlord provided, however, that the Landlord shall be
entitled to retain such portion of the Security Deposit as it reasonably deems
necessary to compensate Landlord for expenses to be incurred to repair any
damage to the Premises or the Building caused by Tenant or Tenant occupancy of
the Premises. Upon retaking possession of the Premises, the Landlord shall
promptly undertake the completion of such repairs. Upon the completion of such
repairs, Landlord shall return the remainder of the Security Deposit, if any, to
the Tenant, and will provide Tenant with a statement of Landlord's expenses in
effecting such repairs.

     Section 4. Use of the Property. The Premises will be used by Tenant solely
for the purpose of office space and research and development. No other,
different or additional use of the Premises shall be permitted except with the
prior written consent of Landlord, which consent shall not be unreasonably
withheld. At no time will the Premises be used for illegal or immoral purposes.
If Tenant's use of the Premises, including the use and location of signage,
necessitates application for zoning or planning approval or compliance with
other municipal or State regulations, or installation of additional or new
fixtures, systems or improvements at any time during the term of this Lease,
Tenant will prosecute and bear the costs of such applications, installation
and/or changes necessary to obtain compliance and approval.

     Section 5. Taxes and Utilities. (A) Tenant shall, during the term of this
Lease, as additional rent, pay and discharge punctually, as and when the same
shall become due and payable, all real and personal property taxes, special and
general assessments, impositions, or all

                                       2

<PAGE>

other claims or charges that may be imposed upon the Premises, including but not
limited to water rents, rates and charges and sewer rents.

          (B) Tenant shall, during the term of this Lease, as additional rent,
pay and discharge punctually, as and when the same shall become due and payable,
all sewer rents and water rents and charges for water, steam, heat, gas, hot
water, electricity, light and power, and other service or services, provided
such are separately metered and furnished to the Premises during the term of
this Lease.

     Section 6. Alterations. (A) Except as hereinafter expressly provided,
Tenant shall not make or permit to be made any alterations, additions, changes
or improvements in or to the Premises or any part thereof without first
obtaining the written consent of Landlord (which consent shall not be
unreasonably withheld, provided Tenant has fully complied with each and every
one of the terms, covenants and conditions in this Agreement and, with respect
to such alterations, additions, changes or improvements, has provided Landlord
with such liability insurance policies and/or surety bonds as Landlord may
reasonably request).

          (B) Before requesting the Landlord's consent, the Tenant shall submit
to the Landlord two copies of the detailed plans and specifications of such
proposed alterations, changes, additions or improvements, one of which may be
retained by the Landlord. The Landlord shall be entitled to withhold its consent
to any such alterations, additions, changes, or improvements, until such time as
the Tenant provides the Landlord with reasonable evidence of the approval of
such alterations, additions, changes or improvements by any and all municipal,
state, federal or other governmental or other authorities, offices and
departments now existing or hereafter created having jurisdiction in the
Premises, and by the holder of any mortgage superior in lien to this Lease.

          (C) The Landlord, its architect, agents and employees, shall have the
right to enter upon the Premises in a reasonable manner and at all reasonable
times during the course of any such alterations, additions, changes or
improvements for the purpose of inspection and determining whether such work
conforms to the approved plans and specifications and with the agreements herein
contained.

          (D) Throughout the term hereof, Tenant, at its own cost and expense,
will cause any and all mechanics' liens and perfections of the same which may be
filed against the Premises to be paid and satisfied of record within thirty (30)
days after Landlord sends to Tenant written notice by registered mail of the
filing of any notice thereof against the Premises or the owner, for or
purporting to be for labor or materials alleged to be furnished or to be charged
by or for Tenant at the Premises, or will bond such mechanics' liens and use its
best efforts to have such liens discharged by an order of a court of competent
jurisdiction within said thirty (30) day period.

          (E) Tenant also covenants and agrees that any alterations,
improvements or other work once begun will be prosecuted with reasonable
diligence to completion and, subject to the provisions of Subsection 6(D), be
paid for by Tenant, free and clear of liens or encumbrances against the Premises
or Landlord, and will be performed in all respects in accordance with law.

                                       3

<PAGE>

     Section 7. Tenant to Comply With Laws, Etc. Tenant, at its own cost and
expense, will promptly execute and comply with any and all laws, ordinances,
statutes, rules and regulations arising at any time affecting the Premises that
relate to the use or occupation of the Premises by Tenant. Tenant will further
at all times during the term of this Lease at Tenant's own cost and expense
indemnify and save harmless Landlord against and from any and each loss
incurred, or penalty, claim or damage suffered, imposed, made or recovered by
reason of the failure or neglect of Tenant or its agents, contractors, employees
or representatives to observe and comply with such laws, ordinances, statutes,
rules and regulations.

     Section 8. No Waiver. The failure of Landlord to insist in any one or more
instances upon the strict performance of any of the terms, covenants, conditions
and agreements of this Lease, or to exercise any option herein conferred, shall
not be considered as waiving or relinquishing for the future any such terms,
covenants or conditions, agreements or options, but the same shall continue and
shall remain in full force and effect; and the receipt of any rent or any part
thereof, whether the rent be that specifically reserved or that which may become
payable under any of the covenants herein contained, and whether the same be
received from Tenant or from any one claiming under or through it or otherwise
shall not be deemed to operate as a waiver of the rights of Landlord to enforce
the payment of rent or charges of any kind previously due or which may
thereafter become due, or the right to terminate this Lease and to recover
possession of the Premises by summary proceedings or otherwise, as Landlord may
deem proper, or to exercise any of the rights or remedies reserved to Landlord
hereunder or which Landlord may have at law, in equity or otherwise.

     Section 9. Landlord's Right of Access. Landlord and Landlord's agents shall
have the right to enter the Premises in a reasonable manner and at all
reasonable times to examine the same, and to show them to prospective
purchasers, mortgagees, or lessees.

     Section 10. Maintenance. (A) Landlord shall be responsible for maintaining
and repairing the structural components of the Premises, including any necessary
replacement of mechanical systems, as well as for snow removal. Except as
otherwise provided in subsection (B) below, Tenant, at its sole cost and
expense, shall be fully responsible for all necessary nonstructural repairs to
and maintenance of the Premises, including the facilities, mechanical systems,
machinery and equipment therein contained, all of which Tenant shall at all
times keep in good order and repair, normal wear and tear excepted.

          (B) Tenant shall maintain, at its cost, a comprehensive maintenance
contract on the HVAC system contained in the Premises with a company acceptable
to Landlord and Tenant.

     Section 11. Assignment, Subletting. Tenant agrees that is shall not assign
this Lease or sublet any portion of the Premises without the prior written
consent of Landlord and Owner. Any such assignment or subletting without consent
shall be void and Landlord may terminate this Lease at its option. Any
assignment or subletting, whether or not consented to by Landlord and Owner,
shall not in any way limit or terminate Tenant's obligations and/or liabilities
hereunder and Tenant shall remain primarily liable to Landlord.

                                       4

<PAGE>

     Section 12. Insurance. As of the Commencement Date, Tenant, at its sole
cost and expense, shall maintain, casualty and public liability insurance
including bodily injury and property damage insuring Tenant and Landlord with
minimum coverage as follows:

<TABLE>
<S>                 <C>
Liability           $1,000,000.00 per occurrence
                    $2,000,000.00 aggregate
Fire and Casualty   $  500,000.00
</TABLE>

Tenant shall provide Landlord with certificates of insurance showing Landlord
and Owner as additional insureds. The certificate(s) shall provide for a thirty
(30) day written notice to Landlord in the event of cancellation or material
change of coverage. To the maximum extent permitted by insurance policies, which
may be owned by Tenant or Landlord, Tenant and Landlord, for the benefit of each
other, waive any and all rights or subrogation, which might otherwise exist.

     Section 13. Eminent Domain. (A) If the entire Premises shall be taken for
public or quasi-public purposes, this Lease shall terminate on the date when
title vests pursuant to such taking (the "Taking Date"). The rent, and any
additional rent, shall be apportioned as of the termination date, and any rent
paid for any period beyond that date shall be repaid to Tenant.

          (B) If such portion of the Premises shall be taken so as to render the
Premises unsuitable for the continuance of Tenant's entire business in
substantially the same manner as it was being conducted immediately prior to
such taking, then Tenant shall have the right to terminate this Lease by written
notice to Landlord of its election to so terminate within thirty (30) days after
the Taking Date. If Tenant fails to so notify Landlord on or before the
expiration of said thirty (30) day period, Tenant shall be deemed to have waived
this contingency and shall be bound to this Lease and the performance of all
obligations herein.

          (C) If however, such portion of the Premises shall be taken so as to
render the Premises unsuitable for the continuance of only a portion of Tenant's
business, then Tenant shall have the right to terminate this Lease only as to
that portion of the Premises by written notice to Landlord of its election to so
terminate within thirty (30) days after the Taking Date, whereupon, all rent due
under this Lease shall be thereafter adjusted to take into account the value of
the portion of the Premises lost as a result of said partial taking. If Tenant
fails to so notify Landlord on or before the expiration of said thirty (30) day
period, Tenant shall be deemed to have waived this contingency and shall be
bound to this Lease and the performance of all obligations herein.

          (D) Tenant shall be entitled to a part of the award for such taking or
any payment in lieu thereof in an amount not to exceed the unamortized value of
any approved fixtures and improvements owned by Tenant and subject to taking,
utilizing reasonable amortization schedules and using the term of this Lease as
the maximum amortization period.

     Section 14. Personal Property. Tenant shall be solely responsible for all
personal property placed upon the Premises during the term of this Lease, which
responsibility shall include by way of illustration and not by way of
limitation, payment of all taxes and fees assessed

                                       5

<PAGE>

against the personal property and insurance for all personal property. Further,
at the expiration or earlier termination of this Lease, Tenant shall remove all
said personal property from the Premises exercising due care not to damage the
Premises by such removal. Tenant shall repair any and all damage done to the
Premises by the removal of said personal property.

     Section 15. Tenant to Indemnify. (A) Tenant shall and will indemnify and
save harmless Landlord from and against any and all liability, claims, demands,
damages, expenses, fees, fines, penalties, suits, proceedings, actions and
causes of action of every kind and nature suffered or incurred as a result of
any breach by Tenant, its agents, servants, employees, visitors or licensees of
any covenant or condition of this Lease, or as a result of Tenant's use or
occupancy of the Premises, or the carelessness, negligence or improper conduct
of Tenant, its agents, servants, employees, visitors or licensees; provided,
however, that it is understood and agreed that the obligations of Tenant
hereunder shall not extend to the negligence or willful misconduct of Landlord,
its agents or representatives.

          (B) Landlord shall and will indemnify and save harmless Tenant from
and against any and all liability, claims, demands, damages, expenses, fees,
fines, penalties, suits, proceedings, actions and causes of action of every kind
and nature suffered or incurred as a result of any breach by Landlord, its
agents, servants, employees, visitors or licensees of any covenant or condition
of this Lease, or the carelessness, negligence or improper conduct of Landlord,
its agents, servants, employees, visitors or licensees; provided, however, that
it is understood and agreed that the obligations of Landlord hereunder shall not
extend to the negligence or willful misconduct of Tenant, its agents or
representatives.

     Section 16. Default. By Tenant. If any one or more of the following events
(herein sometimes referred to as "events of default") shall happen:

               (A)  If default shall be made in the due and punctual payment of
                    rent, or additional rent payable under this Lease, or any
                    part thereof, when and as the same shall become due and
                    payable, and such default shall continue for a period of ten
                    (10) days and for an forty-eight (48) hours after written
                    notice from Landlord that such rent has not been paid within
                    said ten (10) days' grace period; or

               (B)  If default shall be made by Tenant in the performance or
                    compliance with any of the agreements, terms, covenants or
                    conditions in the Lease provided, other than those referred
                    to in the foregoing subparagraph (A) of this Section 16, for
                    a period of twenty (20) days after notice from Landlord to
                    Tenant specifying the items in default, or in the case of a
                    default or contingency which cannot with due diligence be
                    cured within said twenty (20) day period, if Tenant fails to
                    commence within said twenty (20) day period the steps
                    necessary to cure the same and thereafter to prosecute the
                    curing of such default with due diligence (it being
                    understood that the time of Tenant within which to cure
                    shall be extended for such period as may be necessary to
                    complete the same with all due diligence); or

                                       6

<PAGE>

               (C)  If Tenant shall file a voluntary petition in bankruptcy or
                    shall be adjudicated a bankrupt or insolvent, or if there
                    shall be appointed a receiver or trustee of all or
                    substantially all of the property of Tenant or if Tenant
                    shall make any assignment for the benefit of Tenant's
                    creditors, or if Tenant shall vacate the Premises, and any
                    such condition shall continue for a period of twenty (20)
                    days after notice from Landlord specifying the matter
                    involved.

then, and in any such event, Landlord at any time thereafter may give written
notice to Tenant specifying such event or events of default and stating that
this Lease and the term hereby demised shall expire and terminate on the date
specified in such notice, and upon the date so specified, and all rights of
Tenant under this Lease shall expire and terminate.

     In the event Landlord is required to initiate suit to collect any amount
due to Landlord hereunder or otherwise to enforce all or any of the terms of
this Lease, Tenant shall pay Landlord's costs of suit, including reasonable
attorneys' fees. Upon any termination of this Lease as above stated, Tenant
shall immediately vacate the Premises and surrender the same to Landlord. In the
event Tenant fails to so vacate and surrender the Premises, Tenant shall pay all
costs reasonably incurred by Landlord in requiring Tenant to vacate, including
reasonable attorneys' fees and, further, will pay Landlord a daily occupancy
charge equal to twice the daily rental payable by Tenant during the most recent
lease year (computation of said rental to include rent and additional rent).

     Section 17. Quiet Enjoyment. Landlord covenants that Tenant, on paying all
rent required to be paid by Tenant, and performing the other covenants and
undertakings by Tenant to be performed, shall and may peaceably have and enjoy
said Premises for the term aforesaid in accordance with the terms of this Lease.

     Section 18. Removal and Surrender. Tenant will, at the expiration or
earlier termination of this Lease, peaceably surrender the Premises and all
improvements thereon, and further Tenant will execute all documents necessary to
place marketable title to all improvements in Landlord's name or its nominee's
name.

     Section 19. Waste or Nuisance. Tenant shall not commit or suffer to be
committed any waste upon the Premises or any act which shall constitute a public
or private nuisance.

     Section 20. Holding Over. Any holding over after the expiration of the term
hereof shall be construed to be a tenancy from month to month at double the rent
and additional rent prevailing immediately prior to such holding over and shall
otherwise be on the terms and conditions herein specified, so far as applicable.

     Section 21. Successors and Assigns. All rights and liabilities herein given
to, or imposed upon, the respective parties hereto shall extend to and bind the
several respective heirs, executors, administrators, successors and assigns of
the said parties. No rights, however, shall inure to the benefit of any assignee
of the Tenant unless the assignment to such assignee has been approved by
Landlord in writing.

                                       7

<PAGE>

     Section 22. Entire Agreement, Applicable Law. This Lease with any exhibits
and riders attached hereto contains the entire agreement of the parties and no
representations, inducements, promises or agreements not embodied herein shall
be of any force or effect, unless the same are in writing and signed by or on
behalf of the party to be charged. The captions of particular sections are
inserted as a matter of convenience only and in no way affect or define the
scope or intent of this Lease or any provision thereof. This Agreement shall be
governed by and interpreted in accordance with the laws of the State of New
York.

     Section 23. Environmental Covenants. Tenant shall comply with all
environmental laws, rules, regulations, statutes and ordinances, including,
without limitation, those applicable to "hazardous substances." Tenant shall
indemnify, defend and hold harmless Landlord from and against and to pay in full
on demand by Landlord all loss, cost and expense (including, without limitation,
attorneys' fees and disbursements and fees of other professionals advising
Landlord) of whatever nature suffered or incurred by Landlord on account of the
existence on the Premises, or the release or discharge from the Premises, of
"hazardous substances" caused by Tenant or its employees, agents, licensees and
subcontractors after the commencement date of this Lease, including, without
limitation, any claims, costs, losses, liabilities and expenses arising from the
violation (or claimed violation) of any environmental laws or the institution of
any action by any party against Tenant, Landlord or the Premises based upon
nuisance, negligence or other tort theory alleging liability due to the improper
generation, storage, disposal, removal, transportation or treatment of hazardous
substances by Tenant or its employees, agents, licensees and subcontractors, or
the imposition of a lien on any part of the Premises under the Comprehensive
Environmental Response Compensation and Liability Act of 1980, 42 U.S.C. 9601,
et seq., as amended ("CERCLA"), or any other laws pursuant to which a lien or
liability may be imposed on Landlord due to the existence of hazardous
substances by Tenant or its employees, agents, licensees and subcontractors.
Tenant acknowledges that the Premises are part of a larger 29.2 acre area of
land that has been designated as an inactive hazardous waste disposal site and
listed by the New York State Department of Environmental Conservation in the
Registry of Inactive Hazardous Waste Disposal Sites in New York State as Site
Number 6-45-022 (the "WSI Site"). Portions of the WSI Site have been found to be
contaminated with PCB's heavy metals and petroleum residuals.

     Section 24. Lease Not to be Recorded. If this Lease shall be recorded by or
on behalf of Tenant, except at the express request of Landlord, this Agreement,
at the option of Landlord, thereupon shall be and become null, void and of no
further force or effect, and all rights of Tenant hereunder shall cease.

     Section 25. Partial Invalidity. If any term, covenant or condition 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, covenant or condition to persons or circumstances
other than those as to which it is held invalid or unenforceable, shall not be
affected thereby and each term, covenant or condition of this Lease shall be
valid and be enforced to the fullest extent permitted by law.

     Section 26. Waiver of Rule of Construction. The parties waive the benefit
of any rule that this Agreement is to be construed strictly against one party or
the other by virtue of the circumstances of the drafting of this Agreement.

                                       8

<PAGE>

     Section 27. Notices. Any notices to be given pursuant to this Lease shall
be sufficient if given by a writing deposited in the United States mails,
certified mail or registered mail, postage prepaid, and addressed as follows:

          If to Landlord: Jeffords Steel and Engineering Company
                          4398 Route 22
                          P.O. Box 40
                          Plattsburgh, NY 12901
                          Attention: James Favreau

          If to Tenant:   NanoDynamics Incorporated
                          901 Fuhrmann Blvd.
                          Buffalo, NY 14203
                          Attention: Richard L. Berger, President

or to such other person or address as the party entitled to notice shall have
specified by written notice to the other party given in accordance with the
provisions of this Section.

     Section 28. No Brokers. Each party warrants and represents that it has not
retained anyone to solicit or secure this Lease Agreement for a commission,
percentage, brokerage, or contingent fee. Each party agrees to indemnify and
hold harmless the other party from any damage or injury resulting from the
breach of this representation.

                                       9

<PAGE>

IN WITNESS WHEREOF, the parties have executed this Lease, in duplicate
originals, as of the date first above-written.

IN PRESENCE OF:                         Landlord

                                        JEFFORDS STEEL AND ENGINEERING COMPANY

/s/ Illegible Signature                 By: /s/ Larry W. Jeffords
-------------------------------------       ------------------------------------
                                            Duly Authorized Agent

                                        Tenant

                                        NANODYNAMICS, INC.

/s/ Katherine Butcher                   By: /s/ Richard L. Berger
-------------------------------------       ------------------------------------
                                            Richard L. Berger, President

STATE OF NEW YORK
CLINTON COUNTY, SS.

At Plattsburgh, in said County, this 3rd day of October, 2006, personally
appeared Larry W. Jeffords, a duly authorized agent of Jeffords Steel and
Engineering Company, and he acknowledged the within instrument, by him signed,
to be his free act and deed and the free act and deed of Jeffords Steel and
Engineering Company.

Before me,                              /s/ Nancy T. Oliver
                                        ----------------------------------------
                                        Notary Public

STATE OF NEW YORK
ERIE COUNTY, SS.

At Buffalo, in said County, this 26th day of September, 2006, personally
appeared Richard L. Berger, duly authorized agent of NanoDynamics Incorporated,
and he/she acknowledged the within instrument, by him/her signed, to be his/her
free act and deed and the free act and deed of NanoDynamics Incorporated.

Before me,                              Notary Public

                                        /s/ Diane J. McMahon
                                        ----------------------------------------

                                       10

<PAGE>

                                COMMERCIAL LEASE

     This Lease is Made by Waste Stream, Inc., a New York corporation having a
place of business at 141 Maple Street Potsdam, New York, herein called Lessor,
Casella Waste Systems, Inc., a Delaware corporation having a place of business
at 25 Greens Hill Lane, Rutland, VT 05701, and Jeffords Steel and Engineering
Company, a New York corporation having a place of business at 145 Maple Street,
Potsdam, NY, herein called Lessee.

Lessee desires to lease from Lessor, and Lessor desires to Lease to Lessee, a
certain parcel of land comprised of approximately 1.5 acres; and building
located thereon, situated on Tax Map No. 407403, 64.165-1-15, attached hereto as
Exhibit A, and incorporated herein by reference (hereinafter the "Premises"),
including all rights of access thereto upon the following TERMS and CONDITIONS:

     1. Term and Rent. Lessor demises the above Premises for a term of five
years (5) years, commencing on December 2005 and terminating at 12:00 A.M., five
(5) years thereafter, which Lessee may extend for an additional five (5) year
period With written-notice to Lessor at least 90 days prior to the expiration of
the initial term, subject to the "option" and "put right" in Section 20 below.
On the Commencement Date, the Lessee shall pay the Lessor, on a triple not
basis, the first installment of equal monthly installments of rent in the amount
of [Redacted]. The remaining monthly installments shall be made on the fifteenth
day of each month thereafter during the term of this Lease. The rent amount
shall be increased on the anniversary dates. [Redacted]. All rental payments
shall be made to Lessor at PO Box 5195, Potsdam, NY 13676, or at such other
place as designated by Lessor in writing from time to time,

     2. Use.

     (a) Lessee May use the Premises for office space, parking and truck washing
in the wash bay, subject to paragraph 8 of this Lease. The Premises shall be
used for no other purpose without the prior written consent of Lessor, which may
be withheld in its sole discretion. Additionally, under no circumstance shall
the Premises be used for any activities involving solid waste or recycling.
Lessee shall be responsible for obtaining all necessary approvals and variances
for such use and represents to the Lessor that the Premises may lawfully be used
for such purpose.

     (b) The Lessee shall not injure or deface, or commit waste with respect to
the Premises nor occupy or use the Premises, or permit or suffer any part
thereto to be occupied or used, for any unlawful or illegal business, use or
purpose, nor for any purpose nor in any manner in violation of any present or
future (as they become applicable) laws, rules, requirements, orders,
directions, ordinances or regulations of any governmental authority. The Lessee
shall, immediately upon the discovery of any such unlawful or illegal use; take
all necessary maps, legal and equitable to compel the discontinuance of such use
and to oust and remove any subtenants, occupants or other persons guilty of such
unlawful or illegal use.

     (c) The Lessee shall pay when due all taxes, assessments or other public
charges which may during the term be levied, assessed or imposed upon the
Lessee's business, or upon any personal property installed by the Lessee in the
Premises, or which may constitute a lien

                                       11

<PAGE>

upon any of the foregoing. In addition, the Lessee shall assume responsibility
for paying: real property taxes on the Premises, due as of the Commencement
Date.

     3. Care and Maintenance of Premises. Lessee shall, at its sole cost and
expense and at alt times, maintain the Premises in good and safe condition and
shall surrender the same, at termination hereof, in as good condition as
received or as subsequently improved, subject to the provisions of paragraphs 13
and 14 hereof, normal wear and tear excepted. Lessee shall be solely responsible
for all repairs required, including all existing or future improvements.

     4. Alterations, Lessee may not make any structural alterations, additions,
or improvements (including without limitation fence work, masonry repairs and
repainting of buildings), in, to, or about the Promises, without the prior
written consent of Lessor, which shall not be unreasonably withheld. Non-
structural alterations or minor improvements shall not require the consent of
the Lessor.

     5. Ordinances and Statutes. Lessee shall comply with all statutes,
ordinances and requirements of all municipal, state and federal authorities now
in force, or which may hereafter be in force pertaining to the Premises,
occasioned by or affecting the use thereof by Lessee.

     6. Assignment and Subletting. Lessee agrees that it shall not assign this
lease or sublet any portion of the Premises without the prior written consent of
Lessor. Any such assignment or subletting without consent shall be void and, at
the option of Lessor, may terminate this Lease. Any assignment or subletting,
whether or not consented to by Lessor, shall not in any way limit or terminate
the original Lessee's obligations and/or liabilities hereunder and such original
Lessee shall remain primarily liable to Lessor. This Agreement may be assigned
by Lessor at any time without the consent of Lessee, which consent shall not be
unreasonably withheld.

     7. Utilities. Lessee shall be solely liable for all utility charges related
to electric power, heat, telephone, sewer services as they become due as of the
Commencement Date.

     8. Right of Way, Entry and Inspection. Lessee shall permit Lessor or
Lessor's agents to enter upon the Premises through the Right of Way set forth on
Exhibit A at any time for any reason. In addition, Lessee shall permit Lessor or
Lessor's agents to enter upon the Premises at reasonable times and upon
reasonable notice, for the purpose of inspecting the same and performing any
investigatory or remedial. work associated with the Historical Contamination, as
defined in paragraph 9 below, and will permit Lessor at any time within
sixty (60) days pier to the expiration of this Lease, to place upon the Premises
any usual "To Let" or "For Lease" signs, and permit persons desiring to lease
the same to Inspect the Premises thereafter.

     9. Historical Contamination. Lessee and Lessor acknowledge that the
Premises are part of a larger 29.2 acre area of land that has been designated as
an inactive hazardous waste disposal site and listed by the New York State
Department of Environmental Conservation in the Registry of Inactive Hazardous
Waste Disposal Sites in New York State as Site Number 6-45-022 (the "WSI Site").
Portions of the WSI Site have been found to be contaminated with PCB's heavy
metals and petroleum residuals, All such contamination shall be referred to
herein as the "Historical Contamination,"

                                       12

<PAGE>
     10. Possession. If, due to circumstances beyond the reasonable control of
Lessor, Lessor is unable to deliver possession of the Premises at the
commencement hereof, Lessor shall not be liable for any damage caused thereby,
nor shall this Lease be void or voidable, but Lessee shall not be liable for any
rent until possession is delivered. Lessee may terminate this Lease if
possession is not delivered within thirty (30) days of the commencement of the
term hereof, and such termination shall be without prejudice to any other
remedies available, if any, however the availability of any such remedies shall
be absolutely subject to the provisions of this Paragraph.

     11. Indemnification of Lessor. Except for any injury or damage caused in
whole or in part by the negligent act of Lessor, its agents or employees, Lessor
shall not be liable for any damage or injury to Lessee, or any other person; or
to any property, occurring on the demised Premises or any part thereof, and
Lessee and Casella agree to indemnify, defend and hold Lessor harmless from and
against any and all suits, actions, charges, complaints, claims, injunctions,
rulings, damages, fines, costs, liabilities and fees, including court costs and
reasonable attorney's fees and expenses, that Lessor shall suffer as a result of
(a) Lessee's breach of this Lease; (b) Lessee's negligent act or omissions or
willful misconduct; and (c) any federal, state, or local law, ordinance, rule or
regulation, now or hereafter in effect, that deals with or in any other manner
relates to environmental matters of any kind which may arise at any time as a
result of an event relating to the Premises whether occurring before or after
the date that Lessee enters into possession under the terms of this Agreement,
to the extent caused by Lessee, its employees, agents or assigns.

     Lessor agrees to indemnify, defend. and hold Lessee harmless from and
against any and all suits, actions, charges, complaints, claims, injunctions,
rulings, damages, fines, costs, liabilities and fees, including court costs and
reasonable attorney's fees and expenses, that Lessee shall suffer as a result of
(a) Lessor's breach of this Lease; (b) Lessor's negligent act or omissions or
willful misconduct; (c) any other federal, state, or local law, ordinance, rule
or regulation, nosy or hereafter in effect, that deals with or in any other
manner rely any kind which may arise at any time as a result of an event
relating to the Premises whether occurring before or after the date that
Lessee enters into possession under the terms of this Agreement, caused by
Lessor, its employees, agents, assigns or predecessors, including without
limitation the Historical Contamination, provided however, that Lessee enters
into this Lease fully aware of the Historical Contamination. Lessor agrees to
make available to Lessee, at Lessee's cost and expense, all publicly available
records of the Historical Contamination.

     12. Insurance. As of the Commencement Date; Lessee, at its sole cost and
expense, than maintain, casualty and public liability insurance including bodily
injury and property damage insuring Lessee and Lessor with minimum coverage as
follows:

<TABLE>
<S>                 <C>
Liability           $1,000,000.00 per occurrence
                    $2,000,000.00 aggregate
Fire and Casualty   $  500,000,00
</TABLE>

Lessee shill provide Lessor with Certificates of Insurance showing Lessor as
additional insured. The certificate(s) shall provide for a thirty (30) day
written notice to Lessor in the event of cancellation or material change of
coverage. To the maximum extent permitted by insurance

                                       13

<PAGE>

policies, which may be owned by Lessor or Lessee, Lessee and Lessor, for the
benefit of each other, waive any and all rights of subrogation, which might
otherwise exist.

     13. Eminent Domain.

     (a) If the entire Premises shall be taken for public or quasi-public
purposes, this Lease shall terminate on the date when title vests pursuant to
such taking (the "Taking Date"). The rent, and any additional rent, shall be
apportioned as of the termination data, and any rent paid for any period beyond
that data shall be repaid to Lessee.

     (b) If such portion of the Premises shall be taken so as to render the
Premises unsuitable for the continuance of Lessee's entire business in
substantially the same manner as it was being conducted immediately prior to
such taking, then the Lessee shall have the right to terminate this Lease by
written notice to the Lessor of its election to so terminate within thirty (30)
days after the Taking date. If the Lessee fails to so notify Lessor on or before
the expiration of said thirty (30) day period, the Lessee shall be deemed to
have waived this contingency and shall be bound to this Agreement and the
performance of all obligations herein.

     (c) If however, such portion of the Premises shall be taken so as to render
the Premises unsuitable for the continuance of only a portion of the Lessee's
business, then the Lessee shall have the right to terminate this Lease only as
to that portion of the Premises by written notice to the Lessor of its election
to so terminate within thirty.(30) days utter the Taking Date, whereupon, all
rent due under this Lease shall be thereafter adjusted to take into account the
value of the portion of the Premises lost as a result of said partial taking. If
the Lessee fails to so notify Lessor on or before the expiration of said thirty
(30) day period, the Lessee shall be deemed to have waived this contingency and
shall be bound to this Agreement and the performance of all obligations herein.

     (d) Lessee shall be entitled to a part of the award for such taking or any
payment in lieu thereof in an amount not to exceed the unamortized value of any
approved fixtures and improvements owned by Lessee and subject to such taking,
utilizing reasonable amortization schedules and using the term of this lease as
the maximum amortization period.

     14. Lessor's Remedies on Default.

     In the event (i) any installment of rent shall not be paid within thirty
(30) days of the date that the same is due and payable and such rent remains
unpaid for thirty (30) days after written notice there of has been given to the
Lessee by the Lessor; or (ii) the Lessee defaults in the performance or
observance of any other covenant or condition in this Lease and such default
remains unremedied for thirty (30) days after written notice there of has been
given to the Lessee by the Lessor; or (iii) the Lessee makes an assignment for
the benefit of creditors, files a voluntary petition in bankruptcy, is
adjudicated insolvent or bankrupt, petitions or applies to any tribunal for any
receiver or any trustee of or for the Lessee or any substantial part of its
property, commences any proceeding relating to the "Lessee or any substantial
part of Its property under any reorganization, arrangement, readjustment of
debt, dissolution or liquidation law or statute of any jurisdiction, whether now
or hereafter in affect, or them is commenced against the Lessee any such
proceeding which remains undismissed for a period of sixty (60) days, or any
order

                                       14

<PAGE>
 approving the petition in any such proceeding is entered, or the Lessee by any
act indicates its consent to, or acquiescence in, any such proceeding or the
appointment of any receiver of or trustee for the Lessee or any substantial part
of its property, or suffers any such receivership or trusteeship to continue
undischarged for a period of sixty (60) days then, in any of such events, the
Lessor may immediately or at any time thereafter and without demand or notice
enter upon the leased Premises or any in the name of the whole and repossess the
same as of the Lessor's former estate and expel the Lessee and those claiming
through or under the Lessee and remove their erects forcibly if necessary,
without being deemed guilty of any manner of trespass and without prejudice to
any remedies which might otherwise be used for arrears of rent or preceding
breach of covenant, and upon such entry this Lease shall terminate, and the
Lessee covenants that, in case of such termination or in case of termination
under the provisions of statute by reason of the default the Lessee, the Lessee
shall remain and continue liable to the Lessor in an amount equal to the total
rent reserved for the balance of the term, plus all other payments due hereunder
for the balance of the term, less the net amounts (after deducting the expenses
of re-letting, repair, renovation or demolition) the Lessor realizes, or with
due diligence should have realized, from the re-letting which of the Premises.
The Lessor shall have the right from time to time to re-let the leased Premises
upon such terms as it may deem at and if a sufficient sum shall not be thus
realized to yield the not rent required under this Lease. Lessee agrees to
satisfy and pay all deficiencies as they may become due during each month of the
balance of the term. Nothing herein contained shall be deemed to require the
Lessor to await the date whereon this Lease, or the term hereof, would have
expired had there been no default by the Lessee, or no such termination or
cancellation. The rights and remedies given to the Lessor in this Lease are
distinct, separate and cumulative remedies, and no one of them, whether or not
exercised by the Lessor, shall be deemed to be in exclusion of any of the others
herein or by law or equity provided. Nothing contained in this section shall
limit or prejudice the right of the Lessor to prove and obtain, in proceedings
involving the bankruptcy or insolvency of, or a composition with creditors by,
the Lessee the maximum allowed by any statute rule of law at the time in effect.

     15. Taxes. As of the Commencement Date, in addition to any rental or other
payments due hereunder, Lessee shall be responsible for and pay when due any and
all City, County, State, and/or federal real estate, personal property, excise
or other such taxes. In the event that such taxes are assessed for a tax year
beginning prior to the Commencement Date or extending beyond the term of the
Lease, the obligation of Lessee shall be proportionate to the portion of
the Loan term included in such year;

     Lessor agrees to reasonably and timely cooperate with the Lessee by
executing any applications for abatement or applicable real estate taxes,
provided that all such abatements shall be undertaken and pursued at the sole
costs and expense of Lessee and further that, no such abatement application
shall be filed if there is a pending threat of eminent domain taking of all or
any part of the Premises.

     16. Attorney's Fees. In the event that either party undertakes any legal
action for recovery of the Premises, as a result of any default by the other
party, or for any sum due hereunder, or because of any act which may arise out
of the possession of the Premises or this Lease, the prevailing party shall be
entitled to and the non-prevailing party shall be liable for all

                                       15

<PAGE>

costs incurred in connection with such action, including a reasonable attorney's
fee, whether or not suit be brought.

     17. Notices. Any notice which either party may or is required to give,
shall be given by mailing the same, postage prepaid, certified mail; return
receipt requested to Lessee or Lessor at the address shown below, or at such
other places as may be designated by written notice from the parties from time
to time,

Lessee:         Jeffords Steel and Engineering
                PO Box 40
                Plattsburgh, NY 12901

Lessor:         Waste Stream Inc.
                PO Box 5195
                Potsdam, NY 13676

With a copy to:
                Casella Waste Systems, Inc.
                25 Greens Hill Lana
                Rutland, VT 05701
                Attn: Michael J. Brennan, V.P. and General Counsel

     18. Heirs, Assigns, Successors. This Lease is binding upon and inures to
the benefit of the heirs, assigns and successors in interest to the parties.

     19. Holding Over. In the event the Lessee shall hold over after the
expiration date, (a) such holding over shall not extend the term of this Lease,
but shall be treated as a daily Tenney at Sufferance, and shall otherwise be an
the same terms and conditions as set forth in this Lease, where the same may be
applicable; (h) the Lessee shall indemnify and held the Lessor harmless against
loss or liability resulting from such holding over including, without
limitation, any claims made by any succeeding tenant, and (e) the Lessee shall
pay the Lessor the costs and expenses incurred by them, including reasonable
attorneys' fees; in obtaining possession of the property or collecting any sums
due hereunder.

     20. Lessee's Option. to Purchase/Lessor's Put Right, Upon the satisfaction
of the Condition Precedent, Lessee shall have the option to purchase the
Premises from Lessor ("Option"), and Lessor shall have the right to require
Lessee to purchase the Premises ("Put Right"), in "AS IS, WHEREAS" condition,
pursuant to a standard New York State purchase agreement; upon the following
term:

          A.   Purchase Price. The purchase price shall be

          B.   Mode of Exercise. Notice of Lessee's intention to exercise the
               Option or Lessor's Intent to exercise its Put Right shall be
               given in accordance with paragraph. 17 of this Lease. A credit
               shall be supplied .against the purchase price at closing in an
               amount equal to 50% of the total amount of rent payments paid
               hereunder through the date of closing.

                                       16

<PAGE>

          C.   Title. At time of closing, Lessor shall deliver to Lessee
               marketable title to the Premises, which title shall also be
               Insurable by national title Insurance companies without the need
               for alternative coverages requiring additional premium. Such
               title shall be given to Lessee by warranty deed, free and clear
               of all liens and encumbrances, except for a permanent easement
               granting Lessor access to the Right of Way, and such as would not
               normally render the title unmarketable, as, for Instance,
               conventional utility easements.

          D.   Closing. Closing shall take place at such time and place as maybe
               reasonably specified by the Lessee, or otherwise agreed to by the
               parties, but in no event later than the 60th day following
               exercise of the Option by Lessee's notice or the Put Right by
               Lessor's notice as set forth above. At that time, the remainder
               of the purchase price, subject to proration of any items not
               required by this Lease to be paid by Lessee, and subject to the
               payment by each party of its share of real estate transfer taxes,
               shall be paid to Lessor in immediately available funds.

     21. Condition Precedent "Condition Precedent" as referred to in Section 20
above shall mean earlier of (a) the date that the WSI Site is redefined to
exclude the Premises pursuant to applicable federal and state law or (b) the
date that all remedial removal and response action associated with the
Historical Contamination is completed as certified by the NYSDEC.

     22. Entire Agreement. The foregoing constitutes the entire agreement
between the parties and may be modified only by a writing signed by both
parties.

     23. Notice of Lease. The parties hereto agree that upon request by, either
party, the other party will execute an instrument suitable for the recording of
a short form or notice of this Lease, which may contain any valid provision or
provisions of this Lease chosen by the party requesting execution .. except the
rents payable hereunder.

     24. Quiet Enjoyment. Lessor covenants that Lessee upon the performance of
all of its covenants hereunder may use and occupy the Premises for the permitted
use throughout the fulfillment without disturbance by the Lessor, its agents,
employees, or others claiming by, through, or under Lessor.

     25. Appurtenances. As appurtenant to the Lessee's rights to the use and
enjoyment of the Premises, the Lessee, its employees, agents, guests, and
invitees, subject to Sections 8 and 9 hereof, shall have the exclusive right to
use all easements and rights appurtenant thereto,

     26. Lessor's Representations. (1) Lessor is the owner of the premises in
fee simple absolute subject to easement and restrictions of record and has full
authority to enter into this Lease and (2) Lessor is not aware of and pending or
threatened claims relating to the Premises.

     27. Broker's Commissions. Both parties warrant and represent that they have
not dealt with any broker. Each party will indemnify the other for any other
broker's claims, which arise from any claim that one party has dealt with a
broker not specifically referenced above.

                                       17

<PAGE>

     28. Severability. If any provision of this Agreement or the application of
such provision to any person or circumstance shall be held invalid, than the
remainder of this Agreement or the application of such provision to persons or
circumstances other than those to which it is held invalid shall not be affected
thereby and the parties shall thereupon amend this Agreement to legally and
most closely embody the spirit and intent of the invalid provisions,

     29. Interpretation. Paragraph headings are for convenience of reference
only, and shall be given no legal effect in the interpretation of this
Agreement. This Agreement shall not be construed more strictly against one party
than against the other merely by virtue of the fact that it may have been
prepared by counsel for one of the parties, it being recognized that both Lessor
and Lessee, and their respective attorneys, have contributed substantially and
materially to the preparation of each and every provision of this Agreement.

     30. Applicable Law. This Agreement shall be construed and interpreted in
accordance with the laws of the state of New York.

     31. Memorandum for Recording. Lessor and Lessee shall execute a memorandum
of lease in form appropriate for recording in the St. Lawrence County Registry
of Deeds.

IN WITNESS HEREOF, this Agreement has been duly executed and delivered as of the
dates above written.

ATTEST:

                                        WASTE STREAM, INC.

                                        /s/ Chester W. Bisnett
                                        ----------------------------------------
                                        By: Chester W. Bisnett
                                        Title: Division Manager
                                        Date: 11/5/05

ATTEST:

                                        CASELLA WASTE SYSTEMS, INC.

                                        /s/ Timothy A. Cretne
                                        ----------------------------------------
                                        By: Timothy A. Cretne
                                        Title: AVP
                                        Date: 11/21/05

                                       18

<PAGE>

ATTEST:

                                        JEFFORDS STEEL AND ENGINEERING COMPANY

                                        /s/ Larry W. Jeffords
                                        ----------------------------------------
                                        By: Larry W. Jeffords
                                        Title: President
                                        Date: 11/11/05

                                       19

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}]]