Document:

WHENEVER CONFIDENTIAL

INFORMATION IS OMITTED HEREIN (SUCH OMISSIONS ARE DENOTED BY AN ASTERISK), SUCH

CONFIDENTIAL INFORMATION HAS BEEN SUBMITTED SEPARATELY TO THE SECURITIES AND

EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT.

 

AGREEMENT

THIS AGREEMENT (the

“Agreement”), effective this 26th day of June, 2002 (the “Effective Date”), is

entered into by and between Laboratory Corporation of America Holdings

(“LABCORP”), a Delaware corporation having its principal place of business at

430 South Spring Street, Burlington, NC 27215; and EXACT Sciences Corporation

(“EXACT”), a Delaware corporation having its principal place of business at 63

Great Road, Maynard, MA 01754.

                EXACT owns certain proprietary technology directed to cancer detection and

is producing improvements, enhancements, and inventions related to that

technology.

                LABCORP has equipment, facilities, knowledge, and

know-how that are useful in connection with the performance of commercial and

clinical testing relating to EXACT’s proprietary technology.

                EXACT and LABCORP (the “Parties”), therefore, in consideration of the

mutual covenants and conditions contained herein, agree as follows:

Article 1: 

Definitions

1.1                                 “Affiliate”

shall mean, with respect to either Party or any third party, any Person

controlling, controlled by or under the common control of that Party or third

party, as the case may be at any time during the Term of this Agreement.  For the purpose of this definition,

“control” shall mean direct or indirect ownership of fifty percent (50%) or

more of the shares entitled to vote for the election of directors.

1.2                                 “Approved

Kit” shall mean an in vitro diagnostic kit for the performance of Assays.

1.3                                 “ACP”,

which is an acronym for ‘Average Compensated Price’, shall mean, for any

specified month, the average dollar amount received (as such average is

calculated in the manner set forth on Schedule 3) for each Assay performed by

LABCORP and its Affiliates and sub-licensees under this Agreement

1.4                                 “Analytical

Process Improvement” shall mean EXACT’s protocols and associated Technology

which: 1) reduces the [CONFIDENTIAL TREATMENT REQUESTED]/*/ , or reduces the

[CONFIDENTIAL TREATMENT REQUESTED]/*/, 2) [CONFIDENTIAL TREATMENT

REQUESTED]/*/, 3) results in [CONFIDENTIAL TREATMENT REQUESTED]/*/ using

EXACT’s cost model as of the Effective Date, and 4) is [CONFIDENTIAL TREATMENT

REQUESTED]/*/  (as specified in Section 3.5).

1.5                                 “Assay”

shall mean a test for the detection of colorectal cancer on a patient sample

using the Technology in the Field.

1.6                                 “Capture

Process Improvement” shall mean EXACT’s protocol and associated Technology that

will reduce the [CONFIDENTIAL TREATMENT REQUESTED]/*/, and that will

[CONFIDENTIAL TREATMENT REQUESTED]/*/, using EXACT’s cost model as of the

Effective Date.   If there are

[CONFIDENTIAL TREATMENT REQUESTED]/*/ in order to implement the Capture Process

Improvement for an annual run rate of [CONFIDENTIAL TREATMENT REQUESTED]/*/,

then EXACT shall promptly reimburse LABCORP  for the amount greater than [CONFIDENTIAL

TREATMENT REQUESTED]/*/.  EXACT shall

deliver to LABCORP the Capture Process Improvement on or before [CONFIDENTIAL

TREATMENT REQUESTED]/*/.  The [CONFIDENTIAL TREATMENT REQUESTED]/*/

shall be reduced by [CONFIDENTIAL TREATMENT REQUESTED]/*/ after [CONFIDENTIAL

TREATMENT REQUESTED]/*/ that the delivery of the Capture Process Improvement is

delayed.

1.7                                 “Commercial

Launch Date” shall mean the later to occur of (i) completion of the Initial

EXACT Obligations, or (ii) [CONFIDENTIAL TREATMENT REQUESTED]/*/.

1.8                                 “Exclusive

Period” shall mean the period beginning on April 1, 2003 and ending on April 1,

2008, unless sooner terminated in accordance with Section 8.1, 11.2, or 11.6.

1.9                                 “Field”

shall mean a screening assay (regardless of other uses to which such assay is

put) for colorectal cancer in patient samples, excluding tests solely for

staging and/or monitoring of colorectal cancer which do not obsolete or

adversely impact such screening assay.

 

1.10                           “First

Trigger Date” means the  first of: (i) the date on which LABCORP,

its Affiliates and sublicensees net collected revenue from performance of

Assays (excluding Research Assays) exceeds [CONFIDENTIAL TREATMENT

REQUESTED]/*/, or (ii) the date on which LABCORP, its Affiliates and

sublicensees have processed and billed for [CONFIDENTIAL TREATMENT

REQUESTED]/*/ Assays (excluding Research Assays) regardless of whether the

Assays have been reimbursed.

1.11                           “Initial

EXACT Obligations” shall mean EXACT providing LABCORP with the protocols, SOPs,

reagents, and other information and materials reasonably required by LABCORP in

order for LABCORP to validate the Assays at EXACT’s facilities. 

1.12                           “Invention”

shall mean any (i) ideas, designs, concepts, techniques, discoveries,

inventions (whether or not patentable), improvements, modifications, know-how,

methods, technology, developments, SOPs, protocols, proprietary information,

data, and works of authorship; and (ii) patents, copyrights (including without

limitation reproducing and preparing derivative works), trademarks, service

marks, trade secret, trade dress, or other intellectual property rights

associated with the foregoing.

1.13                           “Joint

Invention” shall mean any Invention conceived and/or reduced to practice

jointly by one or more employees or agents of EXACT and one or more employees

or agents of LABCORP or its Affiliates in the course of performing any

activities under this Agreement.

1.14                           “Locus”

or “Loci” shall mean point mutation(s), insertion(s) and/or deletion(s) in (i)

genes, such as, but not limited to, [CONFIDENTIAL TREATMENT REQUESTED]/*/, or

(ii) microsatellites, such as, but not limited to, [CONFIDENTIAL TREATMENT

REQUESTED]/*/, for use with the Technology.

1.15                           “Marketing

Plan” shall mean a plan to be separately agreed upon by the Parties in writing

and which shall specify a joint marketing and sales plan including but not

limited to plans for the development and execution of a comprehensive direct

and indirect sales plan, medical education programming, advocacy work toward

guideline inclusion, in-office and other consumer programming, and managed care

activities.

1.16                           “Minimum

Performance Standards” shall mean the processing by LABCORP (including all of

its Affiliates and sub-licensees) and the entities listed on Schedule 2

(including their Affiliates) of at least [CONFIDENTIAL TREATMENT REQUESTED]/*/

Assays (in the aggregate), excluding Research Assays, on or prior to

[CONFIDENTIAL TREATMENT REQUESTED]/*/ .

1.17                           “Negative

Article” shall mean a [CONFIDENTIAL TREATMENT REQUESTED]/*/.

1.18                           “Operations

Plan” shall mean a plan to be separately agreed upon by the Parties in writing

and which shall specify procedures for sample collection, sample distribution,

capacity planning, and Assay performance.

1.19                           “Person”

shall mean an individual, corporation, partnership, joint venture, trust, or

unincorporated organization, or a government or any agency or political

subdivision thereof.

1.20                           “Records”

shall mean all written records, accounts, and data regarding the activities

performed by LABCORP or its Affiliates under this Agreement.

1.21                           “Research

Assays” shall mean Assays performed by LABCORP or its Affiliates or

sub-licensees for research purposes (including without limitation clinical

trials) without payment from a third party.

1.22                           “Research

Purposes” shall mean non-commercial research purposes to support the

development of in vitro diagnostic products and assays to be developed by or

for EXACT (including clinical trials where testing is not paid for by a third

party, but excluding clinical trials where testing is paid for by a third

party).

1.23                           “Second

Trigger Date” means the date on which (whichever comes first): (i) LABCORP’s,

its Affiliates’ and sublicensees’ net collected revenue from performance of

Assays (excluding Research Assays) exceeds [CONFIDENTIAL TREATMENT

REQUESTED]/*/, or (ii) LABCORP, its Affiliates and sublicensees have processed

and billed for [CONFIDENTIAL TREATMENT REQUESTED]/*/ Assays (excluding Research

Assays) regardless of whether the Assays have been reimbursed.

2

 

1.24                           “Specified

Compensated Assays” shall mean, with respect to any specified month for

determination of any payment due by LABCORP to EXACT under Section 6.2 of this

Agreement, the total number of Assays that meet each of the following

criteria:  (a) such Assays were

performed by LABCORP or any of its Affiliates or sub-licensees at any time

during the twelve (12) month period ending on the last day of the specified

month, and (b) LABCORP or any of its Affiliates or sub-licensees received

itemized fee-for-services payments for such Assays during the specified month.

1.25                           “Standard

of Care” shall mean inclusion in publicly reported guidelines of [CONFIDENTIAL

TREATMENT REQUESTED]/*/  for screening for colorectal cancer.

 

1.26                           “Technology”

shall mean individually or collectively the United States and Canadian patents

and United States and Canadian patent applications of EXACT listed in the

attached Schedule 1 (including all United States and Canadian patents issued

from such applications, continuations, continuations-in-part used in the Field,

and divisional applications based upon such applications, and reissues,

re-examinations of such patents) and any additional Inventions as set forth in

Section 2.3 below.  For the avoidance of

doubt, Technology shall not include continuations-in-part used solely outside

the Field.

 

1.27                           “Territory”

shall mean the United States and Canada and their respective territories and

possessions, except that it shall mean worldwide with respect to clinical

trials.

1.28                           “Term”

shall have the meaning given to it in Section 11.1 of this Agreement.

Article

2:  Licenses

2.1                                 License.  EXACT hereby grants to LABCORP and each of

its Affiliates a non-transferable license to make, use, import, offer for sale,

sell, and perform services, based on the Technology in the Field in the

Territory for the Term.  The license

granted under this Section 2.1 shall be sub-licensable by LABCORP to commercial

reference laboratories only in the Field, subject to the prior approval of

EXACT, with such approval not to be unreasonably withheld by EXACT.  The license granted under this Section 2.1

shall be exclusive during the Exclusive Period and otherwise non-exclusive.  As used in this Section 2.1, “exclusive”

shall mean that the rights granted hereunder shall be exclusive to LABCORP and

each of its Affiliates and sub-licensees in the Field except for the right of

EXACT and each of its Affiliates (i) to use the Technology for any commercial

purpose prior to the Commercial Launch Date and thereafter subject to the prior

written approval of LABCORP (which approval may be granted or denied at

LABCORP’s sole discretion);  (ii) to license the Technology to other

commercial and research organizations for Research Purposes; (iii) to grant a

non-transferable, non-sublicensable license to the Technology to the entities

and their Affiliates listed on Schedule 2 for commercial or Research Purposes

(including clinical trials), provided such license is  [CONFIDENTIAL TREATMENT

REQUESTED]/*/; (iv) subject to the prior written approval of LABCORP, which

approval may be granted or denied at LABCORP’s sole discretion, to license the

Technology to other commercial and research organizations for commercial

purposes; and (v) to perform and have performed research and clinical studies

for EXACT’s Research Purposes, including working with a Person for the

development and testing of an Approved Kit.

2.2                                 Additional Locus. If at any time during the term of the

Agreement, either Party becomes aware of a genetic Locus that would enhance

detection of colorectal cancer in an Assay using the Technology, such Party

shall inform the other Party of such Locus and provide any supporting

documentation known to such Party, and if such Locus is not currently on

Schedule 5, then such Locus shall automatically be incorporated in the attached

Schedule 5.  Incorporation of a locus in

Schedule 5 pursuant to this Section 2.2 shall not constitute a representation

or warranty by EXACT that such locus can be used by LABCORP free of patent

infringement unless EXACT owns patent rights to such locus.

2.3                                 Additional Technology. 

Any Invention that is [CONFIDENTIAL TREATMENT REQUESTED]/*/  at

any time on or before [CONFIDENTIAL TREATMENT REQUESTED]/*/, shall

automatically be included within the definition of “Technology” for purposes of

this Agreement (and any patents or patent applications relating to such

Inventions shall automatically be added to Schedule 1).  EXACT shall promptly notify LABCORP in writing

of all such Inventions.  In addition,

EXACT shall provide notice to LABCORP of any Invention that is [CONFIDENTIAL

TREATMENT REQUESTED]/*/ at any time after [CONFIDENTIAL TREATMENT REQUESTED]/*/  during

the Term of this Agreement but prior to [CONFIDENTIAL TREATMENT REQUESTED]/*/

(an “Applicable EXACT Invention”).  Upon

delivery of such notice and for a period of [CONFIDENTIAL TREATMENT

REQUESTED]/*/  days thereafter, EXACT agrees to  [CONFIDENTIAL TREATMENT

REQUESTED]/*/.  Notwithstanding the

foregoing, EXACT reserves the right to [CONFIDENTIAL TREATMENT REQUESTED]/*/,

in its sole discretion.  However, in the

event that[CONFIDENTIAL TREATMENT REQUESTED]/*/, and EXACT [CONFIDENTIAL

TREATMENT REQUESTED]/*/, then in each such case EXACT shall [CONFIDENTIAL

TREATMENT REQUESTED]/*/.

3

 

Article 3: 

Assays

3.1                                 Performance.  LABCORP agrees that each Assay conducted by

LABCORP and its Affiliates and sub-licensees under this Agreement shall be

performed in accordance with applicable laws and regulations.  Following the Effective Date, the Parties

shall use good faith efforts to agree on an Operations Plan.

3.2                                 Supply

and Pricing of Assay Kits.  In the

event that, during the Term of this Agreement, (i) LABCORP is [CONFIDENTIAL

TREATMENT REQUESTED]/*/, and (ii) EXACT is  [CONFIDENTIAL TREATMENT REQUESTED]/*/,

then EXACT shall [CONFIDENTIAL TREATMENT REQUESTED]/*/.  EXACT shall have the unqualified right to

enter into agreements with third-parties for the development or commercialization

of in vitro diagnostic kits, provided, however, that such agreements do not

[CONFIDENTIAL TREATMENT REQUESTED]/*/, and any such agreements shall

[CONFIDENTIAL TREATMENT REQUESTED]/*/. 

For the avoidance of doubt, EXACT shall not  [CONFIDENTIAL TREATMENT

REQUESTED]/*/.  In addition, during any

period of time during the Term of this Agreement in which LABCORP is

[CONFIDENTIAL TREATMENT REQUESTED]/*/, EXACT shall not [CONFIDENTIAL TREATMENT

REQUESTED]/*/.

3.3                                 Reporting

Requirements.

3.3.1                        Assays

Performed.  Within fifteen (15) days

following the end of each calendar month LABCORP will notify EXACT in writing

of the total number of Assays performed during the prior month by LABCORP and

its Affiliates and sub-licensees, including Research Assays (separately

reported).

3.3.2                        Specified

Compensated Assays and ACP.  Within

thirty (30) days following the end of each calendar month, LABCORP will notify

EXACT in writing of (i) the total number of Assays performed by LABCORP and its

Affiliates and sub-licensees for which LABCORP or any of its Affiliates or

sub-licensees received an itemized fee-for-service, including the number of

Specified Compensated Assays and (ii) the ACP, in each case, with respect to

the prior month.

3.3.3                        Assays

for Capitated Payments.  Within

thirty (30) days following the end of each calendar quarter, LABCORP will

notify EXACT in writing of the total number of Assays performed during the

prior quarter by LABCORP or its Affiliates or sub-licensees (excluding Research

Assays) for which LABCORP or any of its Affiliates or sub-licensees did not

receive an itemized fee-for-service (for example a capitated payment, such as

Assays conducted pursuant to a managed care plan which pays LABCORP or any of

its Affiliates or sub-licensees for a fee per patient regardless of the number

of Assays performed).

3.3.4                        Interim

Reporting; Records.  LABCORP shall

make its personnel available, and otherwise use its reasonable efforts, to

provide EXACT with such interim reporting information with respect to this

Section 3.3 as may be reasonably requested by EXACT.  LABCORP shall maintain, and cause its Affiliates to maintain,

accurate records relating to the number of Assays performed under this

Agreement (including Research Assays, which shall be separately reported) and

such books of account shall be subject to the inspection rights of EXACT set

forth in Section 6.4 hereof.

3.4                                 Marketing

Support.  The Parties shall use good

faith efforts to agree on a Marketing Plan within six (6) months following the

Effective Date.

3.5                                 API

Committee.  Each party shall appoint two (2) scientists

to a committee for the purpose of monitoring the progress of development of the

Analytical Process Improvements (the “API Committee”).  The Analytical Process Improvement milestone

payment (i.e., event 3 specified on Schedule 4) shall not be payable under

Section 6.1.3 (or otherwise) until all scientists on the API Committee have

accepted and approved the Analytical Process Improvements, in each scientist’s

sole discretion.

 

4

 

Article

4:  Ownership and Rights

4.1                                 Pre-Existing

Technology.  All Inventions, of any type, owned by

LABCORP or EXACT as of the Effective Date shall remain the property of the

respective Party.

4.2                                 Inventions.

4.2.1                        As

between the Parties, EXACT shall own any Invention conceived and/or reduced to

practice solely by employees or authorized agents of EXACT or any of its

Affiliates (“EXACT Invention”) and LABCORP shall own any Invention conceived

and/or reduced to practice solely by employees or authorized agents of LABCORP

or any of its Affiliates (“LABCORP Invention”).

4.2.2                        If

EXACT obtains a patent at any time during the Term that (i) would dominate a

patent licensed under this Agreement, or (ii) would be infringed by LABCORP as

a result of the performance of Assays by LABCORP at the time of issuance of

such patent, then, in each case, such patent shall automatically be included in

the relevant license(s) granted to LABCORP and its Affiliates under this

Agreement.  EXACT hereby grants LABCORP

an immunity from suit during the Term for any patent obtained by EXACT at any

time during the Term that is infringed by LABCORP as a result of its

performance of Assays.

4.2.3                        Any

Joint Invention shall be jointly owned by EXACT and LABCORP, and each Party may

use Joint Inventions internally within its organization in any manner and for

any reason in its sole discretion, without the approval of the other Party and

without any obligation to pay the other Party for any profits earned or other

benefits acquired as a result of such internal use.  However, neither Party shall sell, license or otherwise provide

rights to Joint Inventions to third parties without the prior written approval

of the other Party (except as set forth in Section 4.6.2 below).

4.3                                 No

Implied License.  Nothing in this Agreement shall be construed

as granting any Person any right or license under any intellectual property

rights of any other Person by implication, estoppel or otherwise, except as

expressly set forth in this Agreement.

4.4                                 No

Attempt to Obtain Rights.  Except as set forth in this Agreement,

neither Party shall attempt to obtain, during the Term or thereafter, any

right, title or interest in or to any Invention of the other Party.

4.5                                 [CONFIDENTIAL

TREATMENT REQUESTED]/*/.  During the

Term of this Agreement prior to [CONFIDENTIAL TREATMENT REQUESTED]/*/, LABCORP

shall provide EXACT notice of any LABCORP Invention that is [CONFIDENTIAL

TREATMENT REQUESTED]/*/ (an “Applicable LABCORP Invention”).  Upon delivery of such notice and for a period

of [CONFIDENTIAL TREATMENT REQUESTED]/*/  days thereafter  [CONFIDENTIAL TREATMENT

REQUESTED]/*/ LABCORP agrees to [CONFIDENTIAL TREATMENT REQUESTED]/*/.  Notwithstanding the foregoing, LABCORP

reserves the right to [CONFIDENTIAL TREATMENT REQUESTED]/*/, in its sole

discretion.  However, in the event that

[CONFIDENTIAL TREATMENT REQUESTED]/*/, and LABCORP [CONFIDENTIAL TREATMENT

REQUESTED]/*/, then in each such case LABCORP shall [CONFIDENTIAL TREATMENT

REQUESTED]/*/.  

4.6                                 Patent

Prosecution.

4.6.1                        Inventions.  Each Party shall be expressly permitted to

file and prosecute any patent application covering such Party’s own Inventions.

4.6.2                        Joint

Inventions.  The Parties shall jointly agree upon any

decisions relating to the preparation, filing, prosecution, maintenance and

defense of any patent application on a Joint Invention or any patent issuing

therefrom, and the Parties shall share equally in all expenses in connection

therewith, including, without limitation, all attorneys’ fees incurred in

connection therewith.  Notwithstanding

the prior sentence, in the event of a disagreement regarding the filing of a

patent application with respect to a Joint Invention, the Party seeking to file

a patent application may file such patent application at its own expense, and

the other Party agrees to assign all right, title, and interest in and to such

application and any patents issuing therefrom to the Party filing such patent

application subject to the retention of a perpetual, royalty-free,

non-sublicensable, license to use the subject matter of the patent.  Each Party shall provide the other Party

with copies of all official correspondence between such Party and U.S. or

foreign patent offices in patent applications that the Parties pursue for Joint

Inventions.

5

 

4.7                                 Litigation.  Each Party shall notify the other Party

immediately if it becomes aware of (i) any infringement by a third party of any

patent licensed under this Agreement during the Term or (ii) any infringement

of any patent of a third party pursuant to the activities contemplated by this

Agreement.  EXACT shall use

[CONFIDENTIAL TREATMENT REQUESTED]/*/, at its own expense, to enforce

(including without limitation instituting legal action when necessary) its

patent rights and with respect to any infringement by a third party of any

patents owned by EXACT and covered by the Technology in the Field.  Without limiting the foregoing, and without

limiting any other rights or remedies of LABCORP, in the event EXACT does not

file suit during the Exclusive Period to enforce its patent rights against a

third party infringing on any patent licensed under this Agreement, EXACT shall

[CONFIDENTIAL TREATMENT REQUESTED]/*/ in connection with such suit.  After the Exclusive Period, LABCORP shall

not have the right to [CONFIDENTIAL TREATMENT REQUESTED]/*/, except with the

prior written consent of EXACT, which consent may be granted or denied in

EXACT’s sole discretion.

Article 5: 

Confidential Information

5.1                                 Confidential

Information.  “Confidential

Information” shall mean any information, in whatever form, designated by the

disclosing Party (the “Disclosing Party”) in writing as confidential,

proprietary or marked with words of like import when provided to the receiving

Party (the “Receiving Party”), and information orally conveyed if the

Disclosing Party states at the time of oral conveyance or promptly thereafter

that such information is confidential, and provides specific written

confirmation thereof within thirty (30) business days of the oral conveyance,

or such extended period as the Parties may agree in writing.  Notwithstanding the foregoing designation

requirement (i) all EXACT Inventions, and all information and technology provided

by EXACT to LABCORP to enable LABCORP to perform activities hereunder shall be

considered Confidential Information of EXACT under this Agreement, (ii) all

LABCORP Inventions shall be considered Confidential Information of LABCORP

under this Agreement, and (iii) all Joint Inventions shall be considered

Confidential Information for both LABCORP and EXACT.

5.2                                 Exclusions

to Confidential Information. 

Confidential Information will not include information which (a) was in

the Receiving Party’s possession without a confidentiality restriction prior to

the disclosure by the Disclosing Party hereunder, as shown by the Receiving

Party with contemporaneous written records; (b) at or after the time of

disclosure by the Disclosing Party becomes generally available to the public

through no act or omission on the Receiving Party’s part; (c) is developed by

the Receiving Party independently of and without reference or access to any

Confidential Information it receives from the Disclosing Party, as shown by the

Receiving Party with contemporaneous written records; (d) has come into the

possession of the Receiving Party without a confidentiality restriction from a

third party and such third party is under no obligation to the Disclosing Party

to maintain the confidentiality of such information; (e) the Disclosing Party

has given written permission to the Receiving Party to disclose, or (f) any

patent application filed pursuant to Article 4 above.

5.3                                 Treatment

of Confidential Information.  The

Receiving Party acknowledges the confidential and proprietary nature of the

Disclosing Party’s Confidential Information and agrees (i) to hold the

Disclosing Party’s Confidential Information in confidence and to take all

reasonable precautions to protect such Confidential Information (including,

without limitation, all precautions the Receiving Party employs with respect to

its own confidential materials); (ii) not to divulge any such Confidential

Information to any third person; and (iii) not to make any use whatsoever of

such Confidential Information except as expressly authorized in this Agreement.

The Receiving Party shall limit disclosure of Confidential Information received

from the Disclosing Party to those employees or agents of the Receiving Party

whose use of or access to the Confidential Information is necessary to carry

out such Party’s obligations under this Agreement, and shall secure from all

employees, agents or contractors having access to the Confidential Information

agreements, at least as protective of the Confidential Information as the

provisions of this Article 5, to maintain such information in confidence.

6

 

5.4                                 Notwithstanding

the provisions of Section 5.3 above, LABCORP shall be permitted to disclose the

Technology (including without limitation EXACT Inventions and all information

and technology provided by EXACT to LABCORP to enable LABCORP to perform

activities hereunder) to its Affiliates and sublicensees who, in each case,

have agreed to confidentiality restrictions at least as strict as those contained

in this Article5.

5.5                                 Disclosure

Required by Judicial or Governmental Request, Requirement or Order.  In the event that the Receiving Party is

ordered or required to disclose the Disclosing Party’s Confidential Information

pursuant to a judicial or government request, requirement or order, the

Receiving Party shall promptly notify the Disclosing Party and take reasonable

steps to assist the Disclosing Party in contesting such request, requirement or

order or in otherwise protecting the Disclosing Party’s rights prior to

disclosure.

5.6                                 Reproduction

of Confidential Information.  The

Receiving Party agrees not to reproduce or copy by any means Confidential

Information, except as reasonably required to accomplish the purposes of this

Agreement.  Upon termination of this

Agreement, except for the rights of each Party to the Records as set forth

elsewhere in this Agreement, the Receiving Party’s right to use Confidential

Information shall immediately terminate. 

In addition, upon such termination, or upon expiration of this Agreement

or demand by the Disclosing Party at any time, Receiving Party shall return

promptly to the Disclosing Party or destroy, at the Disclosing Party’s option,

all tangible materials that disclose or embody Confidential Information,

subject to any records required to be retained by either Party in accordance

with laws, regulations, rules or orders.

5.7                                 Relief.  The Parties acknowledge and agree that

because the violation, breach, or threatened breach of Article 5 of this

Agreement would result in immediate and irreparable injury, each Party shall be

entitled, without limitation of remedy, to (i) temporary and permanent

injunctive and other equitable relief restraining the other Party from

activities constituting a violation, breach or threatened breach of Article 5

of this Agreement to the fullest extent allowed by law, and (ii) all such other

remedies available at law or in equity, including without limitation the

recovery of damages.

 

Article 6: 

Payments

6.1                                 License

Fees  LABCORP shall pay to EXACT fees in

accordance with Sections 6.1.1, 6.1.2, 6.1.3 and 6.1.4.

6.1.1                        Effective

Date License Fee. LABCORP shall pay

EXACT a non-refundable license fee of 

$15,000,000 one (1) day after the Effective Date of this Agreement (the

“Effective Date License Fee”).   Payment

of the Effective Date License Fee shall be made by LABCORP concurrent with the

execution of this Agreement.

6.1.2                        Commercial

Launch License Fee. LABCORP shall pay

EXACT a license fee of $15,000,000 upon the Commercial Launch Date (the

“Commercial Launch License Fee”); provided, however, that

[CONFIDENTIAL TREATMENT REQUESTED]/*/ in the event [CONFIDENTIAL TREATMENT

REQUESTED]/*/ prior to the Commercial Launch Date.   EXACT shall invoice LABCORP for the Commercial Launch License

Fee upon the Commercial Launch Date (unless [CONFIDENTIAL TREATMENT

REQUESTED]/*/ prior to such date), with payment of the invoiced fees due within

fifteen (15) days after invoicing.

6.1.3                        Milestone

License Fees.  LABCORP shall pay EXACT each of the license

fees set forth on the attached Schedule 4 upon the occurrence of the events set

forth next to each such license fee on the attached Schedule 4 (the “Milestone

License Fees”); provided, however, that in the event

[CONFIDENTIAL TREATMENT REQUESTED]/*/ prior to the Commercial Launch Date,

[CONFIDENTIAL TREATMENT REQUESTED]/*/. 

EXACT shall invoice LABCORP for each Milestone License Fee upon the

occurrence of the applicable milestone event (unless [CONFIDENTIAL TREATMENT

REQUESTED]/*/  prior to the Commercial Launch Date and the Milestone License

Fee relates to  [CONFIDENTIAL TREATMENT REQUESTED]/*/), with payment of the

invoiced fees due within fifteen (15) days after invoicing.

7

 

6.1.4                        Performance-Based

License Fees. If (and only if) the

First Trigger Date occurs on or before [CONFIDENTIAL TREATMENT REQUESTED]/*/,

then LABCORP shall pay EXACT a non-refundable license fee of [CONFIDENTIAL

TREATMENT REQUESTED]/*/ to be paid within 30 days of the First Trigger

Date.  If (and only if) the Second

Trigger Date occurs on or before [CONFIDENTIAL TREATMENT REQUESTED]/*/, then

LABCORP shall pay EXACT a non-refundable license fee of [CONFIDENTIAL TREATMENT

REQUESTED]/*/ within 30 days of the Second Trigger Date.

6.2                                 Assay

Payments.

6.2.1                        Pricing

Schedule.  Within forty-five (45) days of the end of

each month during the Term, LABCORP shall pay to EXACT a fee determined by

multiplying the Specified Compensated Assays in such month by a per Assay fee

as provided in Schedule 3; provided, however, that the Specified Compensated

Assay fee shall in no event (except as provided in Section 6.2.2 (b)), be less

than [CONFIDENTIAL TREATMENT REQUESTED]/*/ (the “Specified Compensated Assay

Fee Minimum”)  The Specified Compensated

Assay fee shall be determined by calculating the ACP as provided in Section 1.3

of this Agreement, and using the formula in Schedule 3 to determine the per

Assay fee based on the ACP.  An example

of the calculation of the fee under this Section 6.2.1 is provided in Schedule

3.  LABCORP shall use efforts consistent

with its internal policies and procedures for similar types of assays to obtain

compensation for all Assays performed by LABCORP and its Affiliates and sub-licensees

hereunder.  Notwithstanding any termination

of this Agreement, EXACT shall be entitled to payments under this Section 6.2

for all Specified Compensated Assays performed by LABCORP and its Affiliates

and sub-licensees prior to such termination.

6.2.2                        Alternative

Pricing.

a.                                       [CONFIDENTIAL

TREATMENT REQUESTED]/*/. 

Notwithstanding the foregoing, during and after the termination of

[CONFIDENTIAL TREATMENT REQUESTED]/*/, in the event that LABCORP (including its

Affiliates) [CONFIDENTIAL TREATMENT REQUESTED]/*/.  In addition, during any period of time during the Term of this

Agreement in which LABCORP  [CONFIDENTIAL TREATMENT REQUESTED]/*/ on a

future date.

b.                                      Competing

Assay.  With the exception of the entities listed in

Schedule 2, in the event that, during the Term of this Agreement, a third party

sells commercially an assay in the Field that satisfies [CONFIDENTIAL TREATMENT

REQUESTED]/*/ on Schedule 4 as applied to the third party, the Specified

Compensated Assay Fee Minimum provided in Section 6.2.1 shall no longer apply.

c.                                       Royalties

On Existing Technology or Markers.  If LABCORP is required to pay any third

party, other than [CONFIDENTIAL TREATMENT REQUESTED]/*/, a royalty to use any

of the protocols transferred by EXACT pursuant to this Agreement (as such

protocols are configured at the time of transfer by EXACT to LabCorp), or any

of the loci in Schedule 5 (as Schedule 5 existed as of the Effective Date),

then the royalty due such third party shall be deducted from the Assay payments

due under this Article 6.

d.                                      New

Invention or Loci For Which A Third Party Royalty is Due.  If either party becomes aware of an

Invention or a locus that is useful in performing Assays hereunder and for

which a royalty must be paid to a third party, the Parties shall discuss

whether such Invention or locus should be used in an Assay.  If the parties agree that such an Invention

or locus should be used in an Assay, then the parties shall negotiate in good

faith an equitable adjustment to the terms of this Agreement, if any.  The prior sentence shall not be construed as

limiting LABCORP’s right to use the Technology in the Field in conjunction with

other Inventions or loci, but merely requiring the parties to negotiate in good

faith on an equitable adjustment (if any) to the terms of this Agreement if

LABCORP and EXACT agree that such new Inventions or loci should be used in

performing Assays.

8

 

6.2.3

                     Capitated

Payments.  For each calendar quarter during the Term in

which the number of Assays performed by LABCORP and its Affiliates and

sublicensees under this Agreement (excluding Research Assays) for which LABCORP

or its Affiliates or sublicensees did not receive an itemized fee-for-service

payment (for example, a capitated payment, such as Assays conducted pursuant to

a managed care plan which pays LABCORP or its Affiliates or sublicensees a fee

per patient regardless of the number of Assays performed) exceeds the Specified

Capitated Percentage (defined below) of the total number of Assays performed by

LABCORP and its Affiliates and sublicensees under this Agreement (excluding

Research Assays), LABCORP shall pay EXACT a fee for such calendar quarter equal

to an amount as is determined by multiplying (i) [CONFIDENTIAL TREATMENT

REQUESTED]/*/, by (ii) [CONFIDENTIAL TREATMENT REQUESTED]/*/.  The “Specified Capitated Percentage” shall

mean [CONFIDENTIAL TREATMENT REQUESTED]/*/. 

EXACT shall invoice LABCORP for such fees on a quarterly basis, with

payment of the invoiced fees due within 30 days after invoicing.

6.3                               Late

Payments.  Each Party may impose

interest compounded at the rate of one and one-half percent (11⁄2%) above the

prime rate published in The Wall Street Journal, Eastern Edition,

under the heading “Money Rates,” on the first business day of each calendar

quarter in which such payments are overdue, per annum on any overdue amount (or

such lesser percentage permitted by law) owed by the other Party hereunder

until such other Party is current in payment. 

In the event that LABCORP is overdue on its payment obligations under

(i) Section 6.1.2 and 6.1.3 hereof for more than fifteen (15) days and (ii)

under Section 6.2 hereof for more than thirty (30) days, EXACT may provide

written notice to LABCORP of such overdue payment obligations and, if such

overdue obligations are not paid within thirty (30) days after LABCORP’s

receipt of such notice, then EXACT may, at EXACT’s option and without

liability, suspend the license granted to LABCORP under this Agreement until

LABCORP’s account is current. All applicable federal, state, or local taxes

assessed in connection with this Agreement (excluding taxes imposed on the

income of EXACT) will be paid by LABCORP.

6.4                                 Inspection Rights.

 

a.               LABCORP shall retain its Records for a

period of three (3) years after the expiration of the Term of this

Agreement.  LABCORP shall make its

Records and books of account relating to EXACT’s entitlement to payment

hereunder for Assays performed available to EXACT (and its representatives and

consultants) for inspection and review at any reasonable time upon thirty (30)

days prior written request by EXACT. 

Any discrepancies in accounting discovered through such review shall be

resolved by mutual agreement of the Parties. 

In the absence of an agreement between the Parties within thirty (30)

days of such audit, the Parties agree that the dispute shall be immediately

referred to one executive officer of each Party, chosen at the sole discretion

of that Party, who shall negotiate in good faith with each other to resolve the

dispute during the period ending 30 days after the date of such referral.  If the designated officers of the Parties

are unable to resolve the dispute within such 30 day period, the dispute shall

be referred to arbitration pursuant to Section 12.2 of this Agreement.  In the event that it is determined that, as

a result of a EXACT inspection or review, EXACT is entitled to additional

payments under this Agreement exceeding five percent (5%) of amounts actually

paid to EXACT (over the applicable period of review), the reasonable out-of-pocket

expenses of EXACT in connection with such inspection and review shall be borne

by LABCORP.  In the event that it is

determined that, as a result of a EXACT inspection or review, EXACT is not

entitled to additional payments under this Agreement exceeding five percent

(5%) of amounts actually paid to EXACT (over the applicable period of review),

the reasonable out-of-pocket expenses of LABCORP in connection with such

inspection and review shall be borne by EXACT.

 

b.              EXACT shall retain its records regarding

the terms of licenses it has granted within the Field, and regarding the terms

of diagnostic kits it has sold for the performance of Assays, for a period of

three (3) years after the expiration of the Term of this Agreement.  EXACT shall make such records relating to

[CONFIDENTIAL TREATMENT REQUESTED]/*/ hereunder available to LABCORP (and its

representatives and consultants) for inspection and review at any reasonable

time upon thirty (30) days prior written request by LABCORP.

 

9

 

6.5                                 [CONFIDENTIAL TREATMENT REQUESTED]/*/ for

Involvement of a Designated Company. 

In the event a Designated Company (defined below) [CONFIDENTIAL

TREATMENT REQUESTED]/*/, then (a) EXACT shall [CONFIDENTIAL TREATMENT REQUESTED]/*/,

as indicated on Schedule 6, and (b) [CONFIDENTIAL TREATMENT REQUESTED]/*/

during the Exclusive Period.  In the

event any of the events described in the prior sentence occur with respect to

the entities or an Affiliate of the entities listed on Schedule 2 (instead of

EXACT), then [CONFIDENTIAL TREATMENT REQUESTED]/*/ during the Exclusive

Period.  A “Designated Company” refers

to  [CONFIDENTIAL

TREATMENT REQUESTED]/*/. 

Notwithstanding anything to the contrary contained herein, LABCORP shall

not be entitled to  [CONFIDENTIAL TREATMENT REQUESTED]/*/  as

a result of any agreement between EXACT and a third party for the development

or commercialization of an Approved Kit.

Article 7: 

Promotion; Use of Name

7.1                                 Promotion by LABCORP. 

LABCORP shall, subject to EXACT’s written prior approval, make

reasonable efforts to reference “EXACT Sciences” and “PreGen-Plus” in an

appropriate manner in the Field in marketing and promotional materials, test

directories, and websites; provided, however, that EXACT shall have the right

to review and comment on any proposed LABCORP marketing and promotional

materials, test directories, and websites (other than materials, test

directories and websites that have been previously approved by EXACT and which

make no new use of “EXACT Sciences” or “PreGen-Plus”) that make reference to

“EXACT Sciences” and/or “PreGen-Plus” for a period of fourteen (14) days after

receipt thereof.

7.2                                 Promotion by EXACT. 

EXACT shall, subject to LABCORP’s written prior approval, make

reasonable efforts to reference LABCORP’s name in an appropriate manner in the

Field in marketing and promotional materials, test directories, and websites;

provided, however, that LABCORP shall have the right to review and comment on

any proposed EXACT marketing and promotional materials, test directories, and

websites (other than materials, test directories and websites that have been

previously approved by LABCORP and which make no new use of LABCORP) that make

reference to LABCORP for a period of fourteen (14) days after receipt thereof.

7.3           Expenses.  Each Party shall be responsible for their

own sales and marketing expenses.

7.4                                 Publicity.  Except as specifically set forth in this

Agreement, no Party shall use any trademark, trade name, or any contraction,

abbreviation, simulation, or adaptation thereof of any other Party, or the name

of any of another Party’s employees in any news, publicity release, policy

recommendation, advertising or any commercial communication without the express

written approval of the other Party; provided, however, that no Party shall

unreasonably withhold its approval to any use of its name which accurately

describes the relationship of the Parties under this Agreement and such Party’s

participation in the activities provided for in this Agreement.

7.5                                 Trademark

Usage.  LABCORP shall use the

trademarks of EXACT only in connection with the display, advertising, promotion

and marketing of Technology and only in accordance with the terms and

conditions of this Agreement.  LABCORP

shall not alter or modify the trademarks of EXACT in any way, and LABCORP shall

use reasonable efforts not to use the trademarks of EXACT in a manner so as to

cause dilution.  LABCORP shall identify

each EXACT trademark as a trademark of EXACT and shall place a trademark notice,

where appropriate, on each piece of advertising or promotional material

containing EXACT trademarks.

Article 8:  Technology

Exclusivity

8.1                               Exclusivity. EXACT may terminate this Agreement

immediately upon written notice to LABCORP in the event that LABCORP ceases to

use EXACT as its sole licensor of DNA-based molecular diagnostics technology

for the detection of colon and rectal cancer in stool at any time during the

Exclusive Period; provided, however, that the Term of this Agreement shall

continue beyond the date of such notice, but in no event later than twelve (12)

months following the date of such notice, solely to the extent necessary for

LABCORP to complete services it obligated itself to perform for third parties

using the Technology prior to the date of such notice. The Parties acknowledge

that such right of termination shall not exist as a result of (i) any

procurement, purchasing, marketing, sale or distribution by LABCORP of any

commercially available diagnostic product approved by the FDA, or (ii)

LABCORP’s purchase of any components from any source for use in connection with

performance of Assays.

10

 

Article 9:  Limitation

of Liability and Indemnification

9.1                                 LIMITATION

OF LIABILITY.  EXCEPT TO THE EXTENT

ARISING FROM INDEMNIFICATION FOR THIRD PARTY CLAIMS UNDER SECTION 9.2 BELOW, IN

NO EVENT SHALL EITHER PARTY BE LIABLE FOR SPECIAL, INDIRECT, CONSEQUENTIAL, OR

INCIDENTAL DAMAGES EXCEPT FOR PATENT INFRINGEMENT DAMAGES, EVEN IF SUCH PARTY

HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

9.2                                 Indemnification.

9.2.1                        EXACT

agrees to defend and/or handle at its own expense, any third party claim, suit

or action against LABCORP and each of its Affiliates and sub-licensees based

upon [CONFIDENTIAL TREATMENT REQUESTED]/*/ under this Agreement.  EXACT further agrees to indemnify and hold

LABCORP and each of its Affiliates and sub-licensees harmless from and against

any and all liabilities, losses, costs, obligations, judgments, damages and

expenses (including costs of investigation and reasonable attorneys’ fees)

associated with any such claim, suit or action.

9.2.2                        LABCORP

agrees to defend and/or handle at its own expense, any third party claim, suit

or action against EXACT and each of its Affiliates for [CONFIDENTIAL TREATMENT

REQUESTED]/*/.  LABCORP further agrees

to indemnify and hold EXACT and each of its Affiliates harmless from and

against any and all liabilities, losses, costs, obligations, judgments, damages

and expenses (including costs of investigation and reasonable attorneys’ fees)

associated with any such claim, suit or action.

Article

10: Representations and Warranties

10.1                           LABCORP Representations and Warranties. LABCORP represents, warrants and

covenants to EXACT that:

10.1.1                  This

Agreement does not contravene or constitute a default under or violation of any

provision of applicable law binding upon LABCORP or any agreement, commitment,

instrument or other arrangement to which LABCORP is a party;

10.1.2                  All

necessary consents, approvals and authorizations of all governmental

authorities or other third parties required to be obtained in connection with

entry into this Agreement have been obtained; and

10.1.3                  All

consultants of LABCORP who participate in research and development or laboratory

or analytical procedures relating to the Technology will execute appropriate

instruments of assignment in favor of LABCORP as assignee that convey to

LABCORP ownership of all right, title and interest in and to all intellectual

property rights or any Invention that may arise from such participation.

10.2                           EXACT Representations and Warranties. 

EXACT represents and warrants to LABCORP that:

10.2.1                  EXACT is a corporation duly organized and validly

existing under the laws of the State of Delaware, and has all requisite

corporate power and authority to enter into this Agreement and to perform its

obligations hereunder;

10.2.2                  This Agreement does not contravene or constitute a

default or violation of any provision of applicable law binding upon EXACT or

any agreement, commitment, or instrument to which EXACT is a party;

11

 

10.2.3                  EXACT has sufficient title and ownership rights to

license the Technology as specified in this Agreement;

10.2.4                  LABCORP and its Affiliates and sub-licensees shall be

entitled to use and enjoy the benefit of the Technology in the Field to the

extent of the license granted hereunder, and, except as otherwise provided in

this Agreement, LABCORP’s and its Affiliate’s and sub-licensee’s use thereof

shall not be adversely affected, interrupted or disturbed by EXACT or any

Person asserting a claim under, through, or on behalf of EXACT;

10.2.5                  As of the Effective Date, EXACT is not aware of any

material unauthorized use, infringement or misappropriation of the Technology,

or any other intellectual property rights of EXACT licensed hereunder;

10.2.6                  As of the Effective Date, EXACT is not aware of any

pending or threatened litigation which alleges 1) that the Technology infringes

on any of the intellectual property rights of any third party or was

misappropriated, or 2) that by using the Technology  LABCORP and its Affiliates and sub-licensees would be infringing

or misappropriating any of the intellectual property rights of any Person;

10.2.7                  As of the Effective Date, EXACT is not aware of a

patent issued to a third party that would be infringed by LABCORP or its

Affiliates’ or sub-licensees’ performance and commercialization of the Assays

using the protocols transferred by EXACT under this Agreement;

10.2.8                  Prior to the Effective Date, EXACT has not granted any

licenses or covenants-not-to-sue to any third parties with respect to the

Technology;

10.2.9                  As of the Effective Date, EXACT is not aware of any

reason that the patents listed in Schedule 1 are not valid and enforceable

patents, and during the Term, EXACT shall submit all filings, make all

payments, and take all other actions necessary to maintain such patents as

valid, in force and in good standing for the longest possible duration with the

U.S. Patent and Trademark Office and corresponding foreign patent authorities

(at its own expense) to avoid premature expiration or termination of its

patents;

10.2.10            As of the Effective Date, the Technology licensed to

LABCORP and its Affiliates and sub-licensees under this Agreement constitutes

all of the technology, information and intellectual property necessary for

LABCORP and its Affiliates and sub-licensees to perform the Assays as of the

Effective Date, except for [CONFIDENTIAL TREATMENT REQUESTED]/*/;

10.2.11            The current assay protocol EXACT uses to prepare stool

sample and to extract DNA therefrom results in a population of human DNA that

is representative of human DNA in exfoliated colonic epithelial cells; and

10.2.12            The protocol for Assays in use by EXACT as of the

Effective Date, and any other protocols to be provided by EXACT to LABCORP at

any time (including without limitation the Analytical Process Improvement,

Capture Process Improvement, and any Inventions provided by EXACT pursuant to

Section 2.3), correctly function to screen patient samples for colorectal

cancer for commercial purposes.

10.3                           DISCLAIMER.  EXCEPT AS EXPRESSLY PROVIDED HEREIN, NEITHER

LABCORP NOR EXACT MAKES ANY REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED,

REGARDING ITS PERFORMANCE UNDER THIS AGREEMENT, INCLUDING BUT NOT LIMITED TO,

THE MARKETABILITY, USE, OR FITNESS FOR ANY PARTICULAR PURPOSE OF THE RESULTS OF

ANY ASSAY PERFORMED HEREUNDER.

Article 11: 

Termination

11.1                           Term.  This Agreement shall continue from the

Effective Date until the expiration of the last to expire of the patents and

patent applications included now or hereafter on Schedule 1 hereto, unless this

Agreement is terminated earlier in accordance with this Article 13 or Section

8.1 (the “Term”).

12

 

11.2                           Termination. 

Either Party may terminate this Agreement:

11.2.1                  If

the other Party materially breaches any representation or warranty or fails to

perform any material obligation hereunder, and such breach is not remedied

within thirty (30) business days after written notice thereof to the Party in

default; or

11.2.2                At any time if the

other Party becomes insolvent, or makes an assignment for the benefit of

creditors, or a receiver or similar officer is appointed to take charge of all

or part of such Party’s assets and, as a result thereof, such Party is unable

or unwilling to perform its obligations under this Agreement.

11.3                           Survival.

Articles 1, 4, 5 (except Section 5.4), 9, 10 and 12 and Sections 6.1.1, 6.2,

6.3, 6.4, 11.3, 11.5  and shall survive the termination of this

Agreement.

11.4                           Effective

Date of Termination.  Termination of

this Agreement shall take effect: (a) as to breaches which have cure periods as

set forth in Section 11.2 hereof, immediately upon expiration of the cure

period if the breach is not cured within the applicable cure period, and (b) as

to other termination provisions, immediately upon the date of any termination

notice.

11.5                           Effect

of Termination.  Upon the expiration

or termination of this Agreement, each Party shall (i) discontinue performance

of all activities hereunder; (ii) deliver to the other Party all Confidential

Information, intellectual property and other materials that belong to such

Party or are otherwise required to be delivered to such Party in accordance

with the terms of this Agreement, and (iii) certify to the other Party in

writing, within fifteen (15) days from the date of termination, compliance with

this Section 11.5; provided that nothing contained in this Article 11 shall

preclude any Party’s right to payment under Article 6 hereof for activities

conducted prior to termination.

11.6                           Termination

of Exclusive Period by EXACT.

11.6.1                  Inability to

Handle Volumes.  If, during the last

three years of the Exclusive Period, EXACT has already met each of the

milestone events set forth on Schedule 4 and the average daily volume of

specimens received by LABCORP for the Technology in the Field exceeds

[CONFIDENTIAL TREATMENT REQUESTED]/*/  specimens per day during any [CONFIDENTIAL

TREATMENT REQUESTED]/*/ day period, LABCORP shall, at EXACT’s written request

(which request may be made no more than twice a year) and within fourteen (14)

days of receipt of such written request, provide EXACT with monthly volume projections

for the next twelve (12) months and evidence of LABCORP’s ability to process at

least [CONFIDENTIAL TREATMENT REQUESTED]/*/ of such specimens within

[CONFIDENTIAL TREATMENT REQUESTED]/*/  days of their receipt by LABCORP.  If, after fourteen (14) days, LABCORP (i) is

unable to provide reasonable evidence of its ability to handle the volume

projections or (ii) does not provide volume projections and evidence of its

ability to handle the volume, the Exclusive Period will automatically

terminate; provided, however, that if the Parties do not agree on whether

evidence provided by LABCORP is sufficient to indicate its ability to handle

volume projections, then the Exclusive Period shall not terminate until such

dispute is settled by arbitration in accordance with Section 12.2.

11.6.2                  Minimum

Performance Standards.  If LABCORP

fails to meet the Minimum Performance Standards then EXACT shall have the

right, upon written notice to LABCORP, to terminate the Exclusive Period and

convert the license granted under Section 2.1 to a non-exclusive license for

the remainder of Term. Notwithstanding the foregoing, EXACT shall not be

permitted to exercise its rights under this Section 11.6.2 if EXACT has not

achieved all of the milestones set forth on Schedule 4 hereto by [CONFIDENTIAL

TREATMENT REQUESTED]/*/.

11.6.3                  Cessation of

Offering Assays.  In the event that

LABCORP on its own accord ceases to offer and promote Assays hereunder after

the Commercial Launch Date, then EXACT shall have the right, upon written notice

to LABCORP, to terminate the Exclusive Period and convert the license granted

under Section 2.1 to a non-exclusive license for the remainder of Term.  In the event EXACT exercises its right under

this Section 11.6.3 to terminate the Exclusive Period, then [CONFIDENTIAL

TREATMENT REQUESTED]/*/.

13

 

Article 12: 

Miscellaneous

12.1                           Headings.  All headings

used in this Agreement and its attachments are intended for convenience of

reference only and shall not affect the construction or interpretation of the

Agreement.

12.2                           Dispute Resolution. 

If a dispute arises between the Parties relating to (i) the

interpretation or performance of the Agreement; or (ii) the grounds for the

termination of the Agreement, the Parties agree to convene a Dispute Resolution

Committee (the “Committee”), consisting of two EXACT representatives with

decision-making authority and two LABCORP representatives with decision-making

authority to attempt in good faith to negotiate a resolution of the dispute

prior to pursuing other available remedies. 

Either Party may request the convening of a Committee by written notice

to the other Party.  A Committee shall

convene for an initial meeting within forty-five (45) days of such written notice.  If the Parties have not succeeded in

negotiating a resolution of the dispute, within thirty (30) days after the

initial meeting of the Committee, the dispute shall be submitted for binding

arbitration under the then current Commercial Rules of the American Arbitration

Association (“AAA”).  Such arbitration

shall be held in Dover, Delaware.  The

Parties shall select three (3) arbitrators from a list of seven (7) arbitrators

provided by the AAA.  The Parties shall

bear the costs of the arbitration equally unless the arbitrators, pursuant to

their right, but not their obligation, require the non-prevailing Party to bear

all or any unequal portion of the prevailing Party’s costs.  The arbitrators shall make decisions in

accordance with applicable Federal and Delaware law and the factual evidence

presented.  The decision of the

arbitrators shall be final and may be sued on or enforced by the Party in whose

favor it runs in any court of competent jurisdiction at the option of the

successful Party.  The arbitrators will

be instructed to prepare and deliver a written, reasoned opinion conferring

their decision.  The rights and

obligations of the Parties to arbitrate any dispute relating to the

interpretation or performance of this Agreement or the grounds for the

termination thereof shall survive the expiration or termination of this

Agreement for any reason.  Nothing in

this Agreement prevents either Party from seeking equitable relief at any time

to prevent irreparable harm or for specific enforcement of the terms of this

Agreement, except that no equitable relief shall be sought to prevent or avoid

arbitration under the terms of this Agreement.

12.3                           No Agency; Independent Contractors. 

The Parties agree that, in the performance of this Agreement, they are

and shall be independent contractors. 

Nothing herein (including without limitation the provisions of Article 4

hereof) shall be construed to constitute a partnership or joint venture between

the Parties nor shall any Party be construed as the agent of any other Party

for any purpose whatsoever, and no Party shall bind or attempt to bind any

other Party to any contract or the performance of any obligation, or represent

to any third party that it has any right to enter into any binding obligation

on the other Party’s behalf.

12.4                           Amendments in Writing. 

No waiver, alteration or modification of any of the provisions of this

Agreement shall be binding unless made in writing and signed by both of the

Parties hereto.

12.5                           Failure to Enforce. 

If either Party fails to enforce any term of this Agreement or fails to

exercise any remedy, such failure to enforce or exercise on that occasion shall

not prevent enforcement or exercise on any other occasion.

12.6                           Exercise of Rights and Remedies. 

All rights and remedies, whether conferred by this Agreement or by any

other instrument or by law shall be cumulative, and may be exercised singularly

or concurrently.

12.7                           Choice of Law; Venue, Jurisdiction. 

This Agreement shall be construed and enforced in accordance with the

laws of the State of Delaware, without giving effect to principles of conflict

of laws.  Venue for any dispute arising

under or resulting from this Agreement shall be in Delaware and each of the

Parties hereby irrevocably submits to the jurisdiction of the United States

Federal Court for the District of Delaware (or, if such court does not have

subject matter jurisdiction, a state court sitting in Delaware) in any action,

suit or proceeding brought against it by the other Party arising under,

resulting from, or related to this Agreement.

12.8                           Severability. 

If any provision of this Agreement is held invalid by any law, rule,

order, or regulation of any government or by the final determination of any

court of competent jurisdiction, such invalidity shall not affect the

enforceability of any other provisions and such provisions shall be interpreted

so as to best accomplish the objectives of such invalid provisions within the

limits of applicable law or applicable court decision.

14

 

12.9                           Inability to Perform. 

Neither Party shall be liable for its failure to perform any of its

obligations under this Agreement during any period in which such performance is

delayed by circumstances outside such Party’s reasonable control, including

without limitation fire, flood, earthquake, other natural disaster, war,

embargo, riot or the intervention of any government authority, provided that

the Party that is unable to perform immediately notifies the other Party of

such inability.

12.10                     Notice.  Notices to

be given under this Agreement shall be in writing, and sent by prepaid

registered or certified mail, return receipt requested, or by prepaid overnight

courier service, or by facsimile, to the 

addresses set forth on the signature page to this Agreement, or to such

other address as a Party may, from time to time, specify to the other Party by

written notice.

12.11                     Entire Agreement. 

This Agreement (including all Schedules, attachments and appendices to

this Agreement, which are incorporated herein by reference) constitutes the

complete and exclusive statement of the agreement between the Parties, and

supersedes all prior agreements, proposals, negotiations and communications

between the Parties, both oral and written, regarding the subject matter

hereof.  Without limiting the foregoing,

the Agreement between the parties dated July 10, 2001 (the “Prior Agreement”),

is hereby superseded by this Agreement, provided that any Confidential

Information exchanged under the Prior Agreement shall continue to be treated as

Confidential Information under this Agreement, and any liabilities or

obligations of either Party arising from any representations, warranties, or

indemnities under the Prior Agreement shall survive with respect to any claims arising

from or relating to activities performed under the Prior Agreement.

12.12                     Counterparts. 

This Agreement may be executed in one or more counterparts, each of

which when executed shall be deemed to be an original but all of which taken

together shall constitute one and the same Agreement.

12.13                     No Assignment. 

Neither Party may assign this Agreement or its rights and obligations

hereunder without the prior written consent of the other Party; provided,

however, that any merger, reorganization, transfer of substantially all assets

of a Party, or other change in control or ownership of such Party shall not be

considered an assignment for the purposes of this Agreement.

12.13                     Steering Committee. 

A steering committee consisting of at least two employees of EXACT, one

of whom shall be a senior executive and two employees of LABCORP, one of whom

shall be a senior executive, shall meet periodically, as mutually agreed upon

by the parties, in order to monitor and implement this Agreement.

 

[SIGNATURES

APPEAR ON FOLLOWING PAGE]

 

15

 

	

  Laboratory Corporation of America Holdings

  	

   

  	

  EXACT Sciences Corporation

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  By

  	

  /s/  Thomas P. MacMahon

  	

   

  	

  By

  	

  /s/ Don M. Hardison

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Title

  	

   

  	

   

  	

  Title

  	

  President and CEO

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Date

  	

   

  	

   

  	

  Date

  	

  6/26/02

  
							

 

	

  Laboratory

  Corporation of America Holdings

  	

   

  	

  EXACT

  Sciences Corporation

  
	

  430 South

  Spring Street

  	

   

  	

  63 Great

  Road

  
	

  Burlington,

  North Carolina 27215

  	

   

  	

  Maynard,

  Massachusetts 01754

  
	

  Attn:  Bradford T. Smith, Esq.

  	

   

  	

  Attn:  Don Hardison

  
	

  Executive

  Vice President

  	

   

  	

  President

  and CEO

  
	

  Fax:  336-226-3835

  	

   

  	

  Fax:  978-897-3481

  
	

   

  	

   

  	

   

  
	

  With a copy also sent to:

  	

   

  	

  With a copy also sent to:

  
	

   

  	

   

  	

   

  
	

  Parker Poe

  Adams & Bernstein, LLP

  	

   

  	

  Testa,

  Hurwitz & Thibeault, LLP

  
	

  P.O. Box 389

  	

   

  	

  125 High

  Street

  
	

  150

  Fayetteville Street Mall, Suite 1400

  	

   

  	

  Boston, MA

  02110

  
	

  Raleigh,

  North Carolina  27602-0389

  	

   

  	

  Attn: Thomas

  C. Meyers

  
	

  Attn:  John R. Erwin, Esq.

  	

   

  	

  Fax:

  617.790.0189

  
	

  Fax:  919-834-4564

  	

   

  	

   

  

 

16

 

SCHEDULE

1

 

Technology

 

	

  United

  States Patents and Patent Applications

  	

  Canadian

  Patents and Patent Applications

  
	

  [CONFIDENTIAL

  TREATMENT REQUESTED]/*/ 

  	

  [CONFIDENTIAL

  TREATMENT REQUESTED]/*/

  

 

17

 

SCHEDULE

2

 

Authorized

Licensees

 

[CONFIDENTIAL

TREATMENT REQUESTED]/*/

 

 

18

 

SCHEDULE 3

 

Per

Assay Fee

 

[CONFIDENTIAL TREATMENT

REQUESTED]/*/  of the ACP; provided, however, that the per Assay fee shall

in no event be less than [CONFIDENTIAL TREATMENT REQUESTED]/*/  (regardless

of ACP).

 

EXAMPLE: 

During January of 2003, LABCORP and its

Affiliates and sub-licensees collect a total of $800,000 in itemized

fee-for-service payments for 2,500 Assays that (i) were performed under this

Agreement by LABCORP and its Affiliates and sub-licensees between January 1,

2003 and January 31, 2004 and (ii) for which LABCORP and its Affiliates and

sub-licensees were not previously compensated. 

Additionally 300 Assays were performed in January pursuant to a capitated

payment plan for which LABCORP did not receive an itemized fee-for-service

payment.  The Specified Compensated Assays

[CONFIDENTIAL TREATMENT REQUESTED]/*/, and the ACP is equal to [CONFIDENTIAL

TREATMENT REQUESTED]/*/.  As such, the

per-Assay fee is [CONFIDENTIAL TREATMENT REQUESTED]/*/, and the fees due for

January 2003 under Section 6.2.1 of this Agreement are [CONFIDENTIAL TREATMENT

REQUESTED]/*/.

 

During February and March of

2003, LABCORP and its Affiliates and sub-licensees performs the same number of

Assays including 300 Assays in each of February and March pursuant to a

capitated payment plan for which no fee-for-service payment was received and

collects the same aggregate itemized fee-for-service payments as in January of

2003.  Therefore, in addition to

[CONFIDENTIAL TREATMENT REQUESTED]/*/  received in January of 2003 as described

above, LABCORP would also owe EXACT fees of for each of February and

March.  Additionally, EXACT will be

entitled to a quarterly fee equal to [CONFIDENTIAL TREATMENT

REQUESTED]/*/.  This additional

quarterly fee is calculated as follows: [CONFIDENTIAL TREATMENT

REQUESTED]/*/.  That number is

[CONFIDENTIAL TREATMENT REQUESTED]/*/. 

Given that this number is [CONFIDENTIAL TREATMENT REQUESTED]/*/, EXACT

would be paid [CONFIDENTIAL TREATMENT REQUESTED]/*/ which equals [CONFIDENTIAL

TREATMENT REQUESTED]/*/ payable under Section 6.2.3 of this Agreement.

 

 

ACP

 

For purposes of determining the

ACP in accordance with Section 1.3 of the Agreement, the average dollar amount

received for each Assay performed by LABCORP and its Affiliates and

sub-licensees will be calculated by [CONFIDENTIAL TREATMENT REQUESTED]/*/, as

follows:  ACP for any month shall be

calculated as [CONFIDENTIAL TREATMENT REQUESTED]/*/.  The calculation of ACP shall expressly exclude [CONFIDENTIAL

TREATMENT REQUESTED]/*/, and shall also expressly exclude [CONFIDENTIAL

TREATMENT REQUESTED]/*/.  As of the

Effective Date, the [CONFIDENTIAL TREATMENT REQUESTED]/*/, and therefore the

Parties acknowledge that the payments accounted through [CONFIDENTIAL TREATMENT

REQUESTED]/*/ will serve as an acceptable basis for determining the average

dollar amount received for each applicable Assay under the Agreement.  However, if for any month during the Term of

this Agreement [CONFIDENTIAL TREATMENT REQUESTED]/*/, then the Parties will use

their best efforts to promptly determine a new system or manner in which to

determine the average dollar amount received for each Assay performed by

LABCORP and its Affiliates that is acceptable to both Parties.

 

19

 

SCHEDULE 4

 

License Fee Milestone

Payments

 

 

	

  Milestone

  	

   

  	

  Payment

  

 

[CONFIDENTIAL TREATMENT

REQUESTED]/*/

 

 

 

 

 

 

 

 

 

20

SCHEDULE 5

Loci

Gene                                       Codon

[CONFIDENTIAL TREATMENT

REQUESTED]/*/

 

 

Gene                                       Microsatellite

[CONFIDENTIAL TREATMENT

REQUESTED]/*/

 

 

 

 

 

Additional Loci will

automatically be added to this Schedule as applicable after the Effective Date

pursuant to Section 2.2.

 

21

SCHEDULE 6

 

 

 

 

[CONFIDENTIAL TREATMENT REQUESTED]/*/

 

 

Commercial Launch License Fee

 

 

[CONFIDENTIAL TREATMENT

REQUESTED]/*/

 

 

Milestone License Fees

 

 

[CONFIDENTIAL TREATMENT

REQUESTED]/*/

 

 

22Exhibit 10.24

 

[***] = Omitted information is filed

separately with the Securities and Exchange Commission pursuant to a

confidential treatment request.

 

Lease Agreement

 

THIS INSTRUMENT IS A LEASE, dated as of

March - 29, 2002, in which the Landlord and the Tenant are the parties

hereinafter named, and which relates to space in a building (the “Building”)

known as Weymouth Woods Corporate Center located at 97 Libbey Industrial

Parkway, Weymouth, Massachusetts.  The parties

to this instrument hereby agree with each other as follows:

 

BASIC LEASE PROVISIONS

 

1.1           Introduction

 

The following sets forth

basic data and, where appropriate, constitutes definitions of the terms

hereinafter listed.

 

1.2           Basic Data

 

Landlord:      Libbey Park LLC

 

Landlord’s Original Address: c/o Campanelli

Companies, One Campanelli Drive, Braintree, Massachusetts 02185

 

Tenant:          Abington Savings Bank, a Massachusetts corporation

 

Tenant’s Original Address:

 

Before the Commencement Date:     536 Washington Street, Abington, Massachusetts

 

From and After the Commencement Date: The Premises.

 

Building:      

An approximately ninety-six thousand three hundred seventy-eight square

foot (96,378 sq.ft.), four (4) story building at Weymouth Woods Corporate

Center.

 

Basic Rent per square foot of the Premises Rentable

Area per annum:

 

	

  Year

  1:

  	

   

  	

  $

  	

  [***]

  	

   

  
	

  Year 2:

  	

   

  	

  $

  	

  [***]

  	

   

  
	

  Year 3:

  	

   

  	

  $

  	

  [***]

  	

   

  
	

  Year 4:

  	

   

  	

  $

  	

  [***]

  	

   

  
	

  Year 5:

  	

   

  	

  $

  	

  [***]

  	

   

  
	

  Year 6:

  	

   

  	

  $

  	

  [***]

  	

   

  
	

  Year 7:

  	

   

  	

  $

  	

  [***]

  	

   

  
	

  Year 8:

  	

   

  	

  $

  	

  [***]

  	

   

  
	

  Year 9:

  	

   

  	

  $

  	

  [***]

  	

   

  
	

  Year 10:

  	

   

  	

  $

  	

  [***]

  	

   

  

 

 

Basic Rent may be adjusted

and/or abated pursuant to Sections 2.3, 3.2 and 12.1.

 

Premises Rentable Area: Approximately

Thirty-Four Thousand Six Hundred Forty (34,640) square feet, comprised of a One

Thousand Eight Hundred Forty-One (1,841) square foot space (“First Floor Space

A”) and a Seven Thousand Seven Hundred Twenty-Four (7,724) square foot space

(“First Floor Space B”) located on the 1st floor of the Building (subject to

adjustment as provided in Section 2.4), and a twenty-five thousand seventy-five

(25,075) square foot space (“Fourth Floor Space”) located on the 4th

floor of the Building, as measured in accordance with the Measurement Method

(subject to adjustment pursuant to Section 2.3).

 

Permitted

Uses:            General office uses,

and, upon the granting of the zoning relief referenced in Section 2.4 below,

retail banking in the Premises and an automatic teller machine in the parking

area on the Property, each in the location so identified in Exhibit B.

 

Parking

Space:            One hundred

seventy-three (173) spaces, of which four (4) shall be reserved spaces marked

“Abington Savings Bank Reserved” using Landlord’s building standard signage in

the location shown on Exhibit A-1, and one hundred sixty-nine (169) shall be

non-reserved spaces in accordance with Section 2.2.a below, provided, however,

there shall be deducted from the non-reserved spaces hereunder any spaces

rendered unusable as a result of Tenant’s automatic teller machine in the

parking area contemplated by Section 2.4 below.

 

Escalation

Factor:      35.94%

 

Scheduled Completion Date: July 1, 2002

as to First Floor Space A and the Fourth Floor Space, and September 1, 2002 as

to First Floor Space A and First Floor Space B (as adjusted in accordance with

Section 4.2)

 

Initial Term: Ten (10) years, commencing

on the Commencement Date and expiring at the close of the day which is the

tenth anniversary of the Commencement Date, except that if the Commencement

Date shall be other than the first day of a calendar month, the expiration of

the Initial Term shall be at the close of the day on the last day of the

calendar month in which such date shall fall.

 

Security Deposit: $[***], representing one

(1) months’ average rent throughout the Term

 

Base Operating Expenses: Base Operating

Expenses shall be the actual Operating Expenses for the Property for calendar

year 2003 (provided that, if during any portion of calendar year 2003, less

than 95% of the Building Rentable Area was occupied by tenants or if the

Building was in operation for only a portion of such year, actual operating

expenses incurred shall be reasonably extrapolated by Landlord to the estimated

operational expenses that would have been incurred if the Building were in

operation for the entire year and 95% occupied for such year, and such

extrapolated amount shall, for the purposes hereof, be deemed to be the Base

Operating Expenses.

 

2

 

Base Taxes: Base Taxes shall be actual

taxes for the Property for the period July 1, 2002 through June 30, 2003

 

Public Liability Insurance: $2,000,000 per

occurrence (combined single limit) for property damage, personal injury or

death.

 

Guarantor: Abington Bancorp., Inc., a

Massachusetts bank holding company, pursuant to a Guarantee of Lease of even

date and delivery herewith

 

1.3           Additional

Definitions

 

Building Rentable Area:  Approximately 96,378 square feet measured in

accordance with the Measurement Method.

 

Business Days:  All days except Sunday, New Year’s Day, Martin Luther King Day,

Washington’s Birthday, Memorial Day, Independence Day, Labor Day, Columbus Day,

Veteran’s Day, Thanksgiving Day, Christmas Day (and the following day when any

such day occurs on Sunday).

 

Commencement Date:  As defined in Section 4.1.

 

Default of Tenant:  As defined in Section 13.1.

 

Escalation Charges:  The amounts prescribed in Sections 8.1 and 9.2.

 

Landlord’s Work:  As defined in Section 4.2.

 

Measurement Method:  “Standard Method of Floor Measurement for Office Buildings,”

effective January 1, 1987, approved by the Real Estate Board of New York, Inc.

Without limitation, such computation includes common areas of the Building

notwithstanding the fact that such common areas are not contained within the

Premises.

 

Normal Business Hours:  As defined in Section 7.4.a.

 

Operating Expenses:  As determined in accordance with Section 9.1.

 

Operating Year:  As defined in Section 9.1.

 

Premises:  The portion of the Building as shown on Exhibit B annexed hereto.

 

Property:  The Building and the land parcels (as described in Exhibit A) on

which it is located (including adjacent sidewalks).

 

Tax Year:  As defined in Section 8.1.

 

Taxes:  As determined in accordance with Section 8.1.

 

Tenant’s Delay:  As defined in Section 4.2.

 

3

 

Tenant’s Plans:  As defined in Section 4.2.

 

Tenant’s Removable Property:  As defined in Section 5.2.

 

Term of this Lease:  The Initial Term and any extension thereof in accordance with the

provisions hereof.

 

ARTICLE

II

PREMISES

AND APPURTENANT RIGHTS

2.1           Lease

of Premises

 

Landlord hereby demises and

leases to Tenant for the Term of this Lease and upon the terms and conditions

hereinafter set forth, and Tenant hereby accepts from Landlord, the Premises.

 

2.2           Appurtenant

Rights and Reservations

 

a.                                       Tenant shall

have, as appurtenant to the Premises, (i) the non-exclusive right to use, and

permit its invitees to use, in common with others, public or common lobbies,

hallways, stairways, and elevators and common walkways necessary for access to

the Building, and if the portion of the Premises on any floor includes less

than the entire floor, the common toilets, corridors and elevator lobby of such

floor; but such rights shall always be subject to reasonable rules and

regulations from time to time established by Landlord pursuant to Section 14.7

and to the right of Landlord to designate and change from time to time areas

and facilities so to be used and (ii) one hundred sixty-four (164) parking

spaces, of which one hundred sixty (160) spaces shall be on a non-exclusive,

first-come, first-served basis, such spaces to be available in a surface level

parking lot, and four (4) shall be reserved as set forth in Section 1.1

above.  In addition, five (5) of the

visitor spaces for the Building shall be designated “Visitors Abington Savings

Bank”. With respect to parking spaces, Landlord reserves the right to institute

a tag or sticker system to monitor compliance by Tenant and others of use of

the parking spaces.  Tenant shall comply

with all rules and regulations set forth by Landlord from time to time

regarding the parking area including, without limitation, rules and regulations

regarding guest parking. Landlord shall have no obligation to police the

parking area or to insure the safety of Tenant’s automobiles. The Premises

shall be designated a non-smoking area and Tenant will comply, and cause its

employees and invitees to comply, with Building regulations regarding

non-smoking areas. Tenant shall also have, as appurtenant to the Premises, the

right to install an emergency generator, at Tenant’s sole cost and expense and

in accordance with the requirements of this Lease, in a location at the rear of

the Property designated by Landlord, it being expressly understood that Tenant

shall be responsible for obtaining all governmental permits and approvals required

therefor.  Landlord shall cooperate with

Tenant in the securing of such permits.

 

b.                                      Excepted and

excluded from the Premises are the ceiling, floor and all perimeter walls of

the Premises, except the inner surfaces thereof, but the entry doors to the

 

4

 

Premises

are a part thereof; and Tenant agrees that Landlord shall have the right to

place in the Premises (but in such manner as to reduce to a minimum

interference with Tenant’s use of the Premises) utility lines, pipes and the

like, in, over and upon the Premises, provided that Landlord shall, if it is

reasonably feasible, place such utility lines, pipes and the like behind the

walls, above the ceilings and below the floor of the Premises.  Tenant shall install and maintain, as

Landlord may require, proper access panels in any hung ceilings or walls as may

be installed by Tenant following completion of the initial improvements to

afford access to any facilities above the ceiling or within or behind the walls

of the Premises.

 

c.

                                    Landlord hereby

grants to Tenant a license to use a portion of the roof of the Building in the

location shown on Exhibit A-3 for the installation of a satellite dish or

dishes to be used exclusively in the conduct of Tenant’s business in the

Premises and not for lease or license to third parties, with conduits

connecting such equipment to the Premises in a vertical chase mutually

designated by Landlord and Tenant. Tenant shall install such equipment at its

sole cost and expense, in accordance with the provisions of Section 5.2 of the

Lease.  Tenant shall repair any damage

to the roof caused by the installation, operation, or removal of Tenant’s

equipment, compensate Landlord for any impairment of Landlord’s roof warranty

resulting therefrom, and remove all such equipment at the end of the Term of

this Lease. Landlord assumes no responsibility for interference in the

operation to Tenant’s equipment caused by other telecommunications equipment

installed elsewhere in or on the Building or elsewhere on the Property. The

obligations of Tenant hereunder shall survive the expiration or termination of

this Lease.

 

2.3                                 Adjustment to Premises Rentable

Area

 

a.                                       Landlord shall,

before the Commencement Date, obtain an exact measurement of the Premises in

accordance with the Measurement Method. Such measurement shall be made by

R&K Associates, Inc. (or other architect or engineer acceptable to

Landlord) at the cost and expense of Landlord.

 

b.                                      If the Premises

Rentable Area as so measured is more or less than the Premises Rentable Area as

set forth in Section 1.2:

 

i.                                          Basic Rent

shall, retroactively to the Commencement Date, be recomputed by multiplying the

Basic Rent set forth in Section 1.2 by a fraction, the numerator of which shall

be premises Rentable Area as determined by such measurement and the denominator

of which shall be the Premises Rentable Area set forth in Section 1.2: and

 

ii.                                       The Escalation

Factor shall be recomputed to be the percentage determined by dividing the

Premises Rentable Area as determined by such measurement by 95% of Building

Rentable Area.

 

5

 

Any payment due either party

as a result of such recomputations shall, if due from Tenant, be paid within

fifteen (15) days of such recomputation, or if due from Landlord, be credited

against the first amounts of Basic Rent due after such recomputation.

 

c.                                       In the event of

any adjustment pursuant to this Section, Landlord and Tenant shall promptly

execute a written statement setting forth the recomputed Premises Rentable

Area, Basic Rent and Escalation Factor.

 

2.4           Right to

Delete Premises Rentable Area on the First Floor

 

Landlord, with cooperation

from Tenant, hereby agrees to use diligent efforts to obtain from the Town of

Weymouth the zoning relief required to install a retail banking area in the

Premises, and an automatic teller machine in the parking area of the Property,

each in the location so identified on Exhibit B. Landlord shall make

application for such relief within thirty (30) days of the date of execution of

this Lease, and shall deliver to Tenant and Tenant’s counsel prior written

notice of, and the opportunity to participate in, any hearings in connection

with such relief. In the event that Landlord is unable to obtain the zoning

relief required for the retail banking area in the Premises (including the

expiration of the appeal period therefrom) within nine (9) months after the

date of execution of this Lease, Tenant shall have the right to delete from the

Premises demised hereby the proposed retail area on the first floor so

identified on Exhibit B, which right shall be exercised by written notice from

Tenant to Landlord within thirty (30) days after the expiration of said nine

(9) month period. Tenant shall not have the right to delete such space in the

event that relief for the retail banking area is granted, but the automatic

teller machine is not approved. Upon the granting of the required relief and

the expiration of the appeal period therefrom, or the expiration of the notice

period set forth in the foregoing sentence, the provisions of this Section 2.4

shall expire and have no further force or effect. The parties acknowledge that

there shall be no additional rent payable with respect to the automatic teller

machine or any area occupied by such automatic teller machine.

 

ARTICLE

III

BASIC RENT

 

3.1           Basic Rent

 

a.                                       Tenant agrees

to pay to Landlord, or as directed by Landlord, commencing on the Commencement

Date as to First Floor Space A and the Fourth Floor Space, and, as to First

Floor Space B, commencing on the date on which First Floor Space B is ready for

occupancy in accordance with Section 4.2 below, without offset, abatement

(except as provided in Article 12.1), deduction or demand, the Basic Rent. Such

Basic Rent shall be payable in equal monthly installments, in advance, on the

first day of each and every calendar month during the Term of this Lease, at

Landlord’s Original Address, or at such other place as Landlord shall from time

to time designate by notice. Until notice of some other designation is given,

Basic Rent and all other charges for which provision is herein made shall be

paid by remittance payable to Landlord, at Landlord’s

 

6

 

Original Address, or at such

other place as Landlord shall from time to time designate by notice. [***].

 

b.                                      Basic Rent for

any partial month shall be prorated on a daily basis, and if the date for

commencement thereof is a day other than the first day of a calendar month, the

first payment which Tenant shall make to Landlord shall be equal to a

proportionate part of the monthly installment of Basic Rent for the partial

month from such date to the last day of the month in which such date occurs

plus the installment of Basic Rent for the succeeding calendar month. In

addition to any charges pursuant to Section 14.18, Tenant shall pay a late

charge equal to 5% of the amount of any Basic Rent payment not paid within five

(5) days of the due date thereof more than once in any calendar year.

 

c.                                       Payments under

this Lease may be made by wire transfer in immediately available federal funds,

to the account specified from time to time by written notice from Landlord to

Tenant.

 

ARTICLE

IV

TERM OF LEASE

 

4.1           Commencement

Date

 

The Commencement Date shall

be the later to occur of:

 

a.                                       The Scheduled

Completion Date for First Floor Space A and the Fourth Floor Space; or

 

b.                                      The day

following the date on which First Floor Space A and the Fourth Floor Space is

ready for occupancy as provided in Section 4.2.

 

Notwithstanding the foregoing, if Tenant’s

personnel shall occupy all or any part of the Premises for the conduct of its

business before the Commencement Date as determined pursuant to the preceding

sentence, such date of occupancy shall, for all purposes of this Lease, be the

Commencement Date.

 

4.2           Preparation

of the Premises

 

a.                                       Landlord and

Tenant have approved the plans and specifications attached hereto as Exhibit C.

Landlord shall exercise all reasonable efforts to complete the work (“Landlord’s

Work”) as specified in the Plans necessary to prepare the Premises for Tenant’s

occupancy in accordance with the schedule attached hereto as Exhibit D. If

Landlord’s Work has not been substantially completed by the Scheduled

Completion Date, this Lease shall nevertheless continue in full force and

effect and Landlord shall continue to use diligent efforts to substantially

complete Landlord’s Work. Landlord shall perform Landlord’s Work at its sole

cost and expense. Any increase in the cost of Landlord’s Work resulting from a

 

7

 

change by Tenant in any of

the Plans after the date hereof shall be paid to Landlord 50% upon the date of

execution of this Lease, and 50% upon substantial completion thereof as

certified by R&K Associates. Tenant shall, if requested by Landlord,

execute a work letter confirming such excess costs before the time Landlord

shall be required to commence work. Landlord shall, at its expense, procure a

certificate of occupancy or an equivalent use or occupancy permit issued by the

local building inspector in connection with its construction obligations

hereunder.

 

Landlord acknowledges that

Tenant may elect to install improvements in the Premises in excess of

Landlord’s Work set forth on Exhibit C, in light of the fact that the Premises

are to become Tenant’s corporate headquarters. In the event that Tenant

determines that Landlord’s cost for such additional work is not competitive,

Tenant shall have the right to have such work performed with forces of its own

choosing, provided that such work shall (i) not interfere with the remaining

Landlord Work, (ii) be coordinated with the remaining Landlord Work in such a

manner as to maintain harmonious labor relations and not cause any work stoppage

or damage to the Premises or the Building (iii) not interfere with Building

construction or operation, and (iv) be performed in compliance with the

requirements of Section 5.2 below.

 

b.                                      The Premises

shall be deemed ready for occupancy on the first day as of which:

 

i.                                          Landlord’s Work

has been completed except for items of work (and, if applicable, adjustment of

equipment and fixtures) which can be completed after occupancy has been taken

without causing undue interference with Tenant’s use of the Premises (i.e.,

so-called “punch list” items), and

 

ii.                                       Tenant has been

given notice of the date that Landlord’s Work was or will be completed, such

notice to be given by Landlord to Tenant at least two (2) weeks’ before the

anticipated date of completion. The determination as to whether the Premises

are ready for occupancy shall be made by R&K Associates, Inc. and shall be

conclusive and binding on Landlord and Tenant. Landlord shall complete as soon

as conditions permit all “punch list” items and Tenant shall afford Landlord

access to the Premises for such purposes. All telephone installation in the

Premises shall be the responsibility of the Tenant. Failure or delay of such

installation shall not delay the above completion date.

 

Landlord shall permit Tenant

access to the Premises for the purpose of allowing Tenant or its contractors to

install fixtures and wiring for security, data and telephone services when such

access may be provided without material interference with the remaining

Landlord Work provided that any such work to be performed by Tenant or its

contractor’s during such period shall (i) not interfere with the remaining

Landlord Work, (ii) be coordinated with the remaining Landlord Work in such a

manner as to maintain harmonious labor relations and not cause any work

stoppage or damage to the Premises or the Building, (iii) not

 

8

 

interfere with Building

construction or operation, and be performed in compliance with the requirements

of Section 5.2 below.

 

c.                                       Tenant agrees

not to employ or permit the use of any labor or otherwise take any action which

might result in a labor dispute involving personnel providing services in the

Building pursuant to arrangements with Landlord.

 

d.                                      If a delay

shall occur in the date the Premises are ready for occupancy pursuant to

paragraph (b) as the result of any of the following (a “Tenant’s Delay”):

 

i.                                          Any request by

Tenant that Landlord delay in the commencement or completion of Landlord’s Work

for any reason;

 

ii.                                       Any change by

Tenant in any of the Landlord’s Work that, in Landlord’s reasonable judgment,

causes a delay in Landlord’s completion of Landlord’s Work;

 

iii.                                    Any other act

or omission of Tenant or its officers, agents, servants or contractors,

including without limitation;

 

iv.                                   Any reasonably

necessary displacement of any of Landlord’s Work from its place in Landlord’s

construction schedule resulting from any of the causes for delay referred to in

clauses i., ii., and iii. of this paragraph and the fitting of such Work back

into such schedule; or

 

v.                                      Any act or

omission of Tenant in violation of paragraph (c) above;

 

then Tenant shall, from time

to time, and within ten (10) days after demand therefor (accompanied by

reasonable documentation from Landlord as to the basis for the Tenant Delay),

pay the Landlord as an additional charge for each day of such delay equal to

the amount of Basic Rent, Escalation Charges and other charges that would have

been payable hereunder had the Commencement Date occurred before such

delay.  Tenant also shall pay to

Landlord within ten (10) days of invoice therefor, any additional costs

incurred by Landlord in completing the work to the extent that such costs are

reasonably attributable to Tenant’s Delay.

 

e.                                       If, as a result

of Tenant’s Delay(s), Landlord’s Work is delayed in the aggregate for more than

one hundred eighty (180) days, Landlord may (but shall not be required to) at

any time thereafter terminate this Lease by giving written notice of such

termination to Tenant and thereupon this Lease shall terminate without further

liability or obligation on the part of either party except that Tenant shall

pay to Landlord the cost theretofore incurred by Landlord in performing

Landlord’s Work.

 

9

 

4.3          Conclusiveness

of Landlord’s Performance; Warranties

 

Except to the extent to

which Tenant shall have given Landlord written notice, not later than the end

of the second full calendar month next beginning after the Commencement Date, of

respects in which Landlord has not performed Landlord’s Work, Tenant shall be

deemed to have acknowledged that all Landlord’s Work has been completed to

Tenant’s satisfaction and that Tenant has waived any claim that Landlord has

failed to perform any of Landlord’s Work. 

Landlord shall correct any defects due to faulty workmanship or

materials in Landlord’s Work, provided Tenant shall have given written notice

of such defects to Landlord before the second anniversary of the Commencement

Date.  From and after the expiration of

such twenty-four (24) month period, (a) Tenant shall be entitled to the benefit

of any applicable warranties obtained by Landlord from third parties with

respect to Landlord’s Work provided that Tenant shall be solely responsible for

enforcing such warranties directly against the party providing the same, and

(b) Landlord shall continue to be obligated to make any repair as to which

Tenant has notified Landlord within said twenty-four (24) month period which

has not been properly completed.  To the

extent that portions of the Premises are delivered to Tenant at different

times, the respective two-month and twenty-four month periods set forth herein

shall be deemed to commence as to each such portion on the date of their

delivery by Landlord to Tenant.

 

4.4          Landlord’s

Due Diligence Representations

 

Landlord hereby represents

to Tenant as follows:

 

a.                                       As of the date

of this Lease, record title to the Property is subject only to the matters set

forth in Exhibit A.

 

b.                                      The Building

has been, and Landlord’s Work in the Premises shall be, constructed in

accordance with all applicable federal, state, and local laws, ordinances and

regulations, free of all mechanics and materialmen’s liens.

 

c.                                       Landlord has no

knowledge of any matters related to the environmental condition of the

Property, other than as set forth in the environmental assessment referenced in

Exhibit H.

 

ARTICLE V

USE OF PREMISES

 

5.1          Permitted

Use

 

a.                                       The Premises

shall be used and occupied by Tenant only for Permitted Uses and for no other

purpose.

 

b.                                      Tenant shall

conform to the following provisions during the Term of this Lease:

 

i.                                          Tenant shall

cause all freight to be delivered to or removed from the Building and the

Premises in accordance with reasonable rules and regulations established by

Landlord therefor;

 

10

 

ii.                                       Tenant will not

place on the exterior of the Premises (including both interior and exterior

surfaces of windows and doors) or on any part of the Building outside the

Premises, any sign, symbol, advertisement or the like visible to public view

outside of the Premises without the prior consent of Landlord.  Landlord will not unreasonably withhold

consent for signs or lettering on the entry doors to the Premises provided such

signs conform to building standards adopted by Landlord and Tenant has

submitted to Landlord a plan or sketch of the sign to be placed on such entry

doors.  Landlord agrees, however, to

maintain a tenant directory in the lobby of the Building in which will be

placed Tenant’s name and the location of the Premises in the Building.  Notwithstanding the foregoing, Tenant shall

have the right, at its sole expense, to install signs with the name “Abington

Savings Bank” and its corporate logo on the exterior of the Building as shown

on Exhibit A-2, having the dimensions shown on Exhibit A-2, provided that (a)

Landlord shall have the right to approve such signage, which approval shall not

be unreasonably withheld or delayed, (b) Landlord, in cooperation with Tenant,

shall be responsible for obtaining all governmental permits and approvals

required therefor, (c) the installation of the signage shall conform with the

requirements of Section 5.2 hereof, and (d) Tenant shall remove such signage at

the expiration or earlier termination of this Lease, and shall repair all

damage occasioned thereby.  Landlord

hereby agrees that the only other exterior signage attached to the Building

shall be (x) any signage to which Sager Electric is entitled under its Lease in

the Building, and (y) signage for one additional tenant, which signage shall be

in the location shown on Exhibit A-2.

 

iii.                                    Tenant shall

not perform any act or carry on any practice which may injure the Premises, or

any other part of the Building, or cause any offensive odors or loud noise or

constitute a nuisance or a menace to any other tenant or tenants or other

persons in the Building; and

 

iv.                                   Tenant shall

not operate any cooking apparatus (except for coffee making equipment, a

microwave oven, a standard size refrigerator and a sink), except in locations

improved by Tenant for kitchen purposes in accordance with plans approved by

Landlord therefor (which approval shall not be unreasonably withheld), or

locate any vending machines, in the Premises.

 

5.2          Installations

and Alterations by Tenant

 

a.                                       Tenant shall

make no alterations, additions or improvements (collectively, “Improvements”)

in or to the Premises without Landlord’s prior written onsent provided that

subsequent to the completion of the initial Landlord work, Landlord’s consent

shall not be required if such Improvements (i) re non-structural and do not

exceed in the aggregate a cost of Fifty thousand ($50,000.00) or (ii) are of a

decorating nature (i.e., carpeting, painting, wallpaper) irrespective of the

cost. With respect to Improvements requiring Landlord’s

 

11

 

consent, Landlord shall not

unreasonably withhold, condition or delay its consent for non-structural

Improvements to the Premises.  All Improvements

shall:

 

i.                                          Be performed in

a good and workmanlike manner and in compliance with all applicable laws;

 

ii.                                       Be made only by

contractors or mechanics approved by Landlord;

 

iii.                                    Be made at

Tenant’s sole expense and at such times and in such manner as Landlord may from

time to time designate; and

 

iv.                                   Become part of

the Premises and the property of Landlord.

 

b.                                      All articles of

personal property and all business fixtures, machinery and equipment and

furniture owned or installed by Tenant solely at its expense in the Premises

(“Tenant’s Removable Property”) shall remain the Property of Tenant and shall

be removed by Tenant at any time before the expiration of this Lease, provided

that Tenant, at its expense, shall repair any damage to the Premises and the

Building caused by such removal.

 

c.                                       Notice is

hereby given that Landlord shall not be liable for any labor or materials

furnished or to be furnished to Tenant upon credit, and that no mechanic’s or

other lien for any such labor or materials shall attach to or affect the

reversion or other estate or interest of Landlord in and to the Premises.  Whenever and as often as any mechanic’s lien

shall have been filed against the Property based upon any act or interest of Tenant

or of anyone claiming through Tenant, Tenant shall forthwith take such action

by bonding, deposit or payment as will remove or satisfy the lien.  Landlord shall have the option, but not the

obligation, of removing, bonding over or paying such lien if Tenant has not

done so within ten (10) days following Landlord’s notice to Tenant of the

filing of the same, and any amounts paid by Landlord therefor shall be paid to

Landlord within ten (10) days after invoice therefor as additional rent

hereunder.

 

d.                                      Tenant shall

not be obligated to remove at the end of the Term of this Lease (i) any

Improvement unless Landlord specifies an Improvement for removal at the time

Landlord consents to such Improvement or (ii) any improvements built by

Landlord as part of the initial fit-up of the Premises which would customarily

be considered standard tenant improvement (collectively referred to herein as

“Building Standard Office Improvements”).

 

ARTICLE

VI

ASSIGNMENT AND SUBLETTING

 

6.1           Prohibition

 

a.                                       Tenant

covenants and agrees that neither this Lease nor the term and estate hereby

granted, nor any interest herein or therein, will be assigned, mortgaged,

pledged, encumbered or otherwise transferred and that neither the Premises nor

any part

 

12

 

thereof will be encumbered

in any manner by reason of any act or omission on the part of Tenant, or used

or occupied or permitted to be used or occupied, by anyone other than Tenant,

or for any use or purpose other than a Permitted Use, or be sublet (which term,

without limitation, shall include granting of concessions, licenses and the

like) in whole or in part, without, in each instance, having first received the

express written consent of Landlord which, in the case of any subletting, will

not be unreasonably withheld subject to the following conditions:  (i) Tenant is not then in default under this

Lease, (ii) the proposed sublease is not to any other tenant then occupying any

space in the Building or to any other party with whom Landlord is then

negotiating to lease space in the Building, (iii) Tenant shall not rent the

Premises at a lower rate than that which Landlord is charging for comparable

space in the Building at such time, and (iv) any such sublease shall be subject

to all the other provisions of this Article VI.  Tenant’s request for Landlord’s consent shall be in writing and

shall contain the name and address of the proposed sublessee, the rent and

other sums to be paid thereunder, the effective date of the proposed sublease

and the other major business terms thereof, and the term and area of any

proposed sublease.  In all other cases,

Landlord’s consent may be withheld in its sole discretion.  The foregoing restrictions shall not be applicable

to (i) an assignment of this Lease or a subletting of the Premises by Tenant to

an entity controlling, controlled by or under common control with Tenant or

(ii) an assignment of this Lease to an entity that succeeds to Tenant’s

interest in this Lease by reason of merger, acquisition, consolidation or

reorganization (collectively such entities are referred to herein as,

“Affiliates”), provided that Tenant shall, before the effective date of such

assignment to an entity described in the foregoing clause (ii), provide to

Landlord evidence reasonably satisfactory to Landlord that, as of the date of

such assignment, the assignee shall have a net worth equal to the greater of

the net worth of Tenant as of the date of this Lease or as of the date of the

assignment.  It shall be a condition of the

validity of any assignment, whether with the consent of Landlord or to an

Affiliate, that the assignee agrees directly with Landlord, by written

instrument in form satisfactory to Landlord, to be bound by all the obligations

of Tenant hereunder including, without limitation, the covenant against further

assignment and subletting.  No

assignment or subletting shall relieve Tenant from its obligations hereunder

and Tenant shall remain fully and primarily liable therefor.

 

b.                                      If this Lease

be assigned, or if the Premises or any part thereof be sublet or occupied by

anyone other than Tenant, Landlord may, at any time and from time to time,

collect rent and other charges from the assignee, subtenant or occupant, and

apply the net amount collected to the rent and other charges herein reserved,

but no such assignment, subletting, occupancy or collection shall be deemed a

waiver of this covenant, or the acceptance of the assignee, subtenant or

occupant as a tenant or a release of Tenant from the further performance by

Tenant of its obligations hereunder. 

The consent by Landlord to an assignment or subletting shall in no way

be construed to relieve Tenant or any successor from obtaining the express

consent in writing of Landlord to any further assignment or subletting.  No assignment or subletting and no use of

the Premises by a subsidiary

 

13

 

wholly-owned by Tenant or

controlling corporation of Tenant shall affect Permitted Uses.

 

c.                                       Except with

respect to assignments of the Lease or subletting of the Premises to

Affiliates, Landlord shall have the right to terminate this Lease in its

entirety in the case of an assignment or with respect to the portion of the

Premises that Tenant is proposing to sublet in the case of a sublease.

 

6.2           Excess

Payments

 

If:

 

i.                                          the rent and

other sums received by Tenant on account of a sublease of all or any portion of

the Premises exceeds the Basic and Escalation Charges allocable to the space

subject to the sublease (in the proportion of the area of such space to the

entire Premises) plus actual out-of-pocket expenses incurred by Tenant in

connection with Tenant’s subleasing of such space, including brokerage

commissions to a licensed broker, the cost of preparing such space for

occupancy by the subtenant amortized over the sublease term, and the

unamortized balance, as certified by Tenant with supporting documentation

reasonably approved by Landlord of (x) alterations or additions above building

standard initially installed by Tenant at its expense in the Premises, and (y) other

utility infrastructure installed by Tenant at its expense which will be used by

the subtenant (collectively, the “Tenant Costs”), Tenant shall pay to Landlord,

as an additional charge, 50% of such excess, monthly as received by Tenant; or

 

ii.                                       any payment

received by Tenant on account of any assignment of this Lease exceeds the

actual out-of-pocket expenses incurred by Tenant in connection with such

assignment, including the Tenant Costs, Tenant shall pay to Landlord, as an

additional charge, 50% of such excess when received by Tenant.

 

ARTICLE

VII

RESPONSIBILITY FOR REPAIRS AND CONDITIONS

OF PREMISES;

SERVICES TO BE FURNISHED BY LANDLORD

 

7.1           Landlord

Repairs

 

a.                                       Except as

otherwise provided in this Lease, Landlord shall keep in good order, condition

and repair the roof, public areas (including common areas), exterior walls,

floor slabs, the Building HVAC system (but not any special tenant HVAC system)

and structure of the Building (including plumbing, mechanical and electrical

systems), all insofar as they affect the Premises, except that Landlord shall

in no event be responsible to Tenant for the condition of glass in and about

the Premises or for the doors leading to the Premises, or for any condition in

the Premises or the Building caused by any act or neglect of Tenant, its

invitees or

 

14

 

contractors (in which case

Tenant shall promptly effect such repairs or, at Landlord’s option, Landlord

may effect such repairs and charge the entire cost thereof to Tenant as

additional rent provided, however, that if, after Tenant pays the cost of such

repair, Landlord receives from its insurance carrier proceeds with respect to

the cost of such repairs, Landlord shall reimburse Tenant for the cost of such

repairs up to the amount actually received by Landlord with respect to the

same).  Landlord shall not be

responsible to make any improvements or repairs to the Building other than as

expressly in this Section 7.1 provided, unless expressly provided otherwise in

this Lease.

 

b.                                      Landlord shall

never be liable for any failure to make repairs which, under the provisions of

this Section 7.1 or elsewhere in this Lease, Landlord has undertaken to make

unless Tenant has given notice to Landlord of the need to make such repairs,

and Landlord has failed to commence to make such repairs within a reasonable

time after receipt of such notice, or fails to proceed with reasonable

diligence to complete such repairs.

 

7.2           Tenant’s

Agreement

 

a.                                       Tenant will

keep neat and clean and maintain in good order, condition and repair the

Premises and every part thereof, excepting only those repairs for which

Landlord is responsible under the terms of this Lease, reasonable wear and tear

of the Premises, and damage by fire or other casualty and as a consequence of

the exercise of the power of eminent domain; and shall surrender the Premises,

at the end of the term, in such condition. 

Without limitation, Tenant shall maintain and use the Premises in accordance

with all directions, rules and regulations of the proper officers of

governmental agencies having jurisdiction, and shall, at Tenant’s own expense,

obtain all permits, licenses and the like required by applicable law.  Tenant shall be responsible for the cost of

repairs that may be made necessary by reason of damage to common areas in the

Building by Tenant, Tenant’s independent contractors or Tenant’s invitees.

 

b.                                      If repairs are

required to be made by Tenant pursuant to the terms hereof, Landlord may demand

that Tenant make the same forthwith, and if Tenant refuses or neglects to

commence such repairs and complete the same with reasonable dispatch, after

such demand, Landlord may (but shall not be required to do so) make or cause

such repairs to be made and shall not be responsible to Tenant for any loss or

damage that may accrue to Tenant’s stock or business by reason thereof.  If Landlord makes or causes such repairs to

be made, Tenant agrees that Tenant shall forthwith, on demand, pay to Landlord

the cost thereof as an additional charge hereunder.

 

7.3           Floor Load -

Heavy Machinery

 

a.                                       Tenant shall

not place a load upon any floor in the Premises exceeding 100 lbs. (live load)

per square foot of Premises Rentable Area. 

Landlord reserves the right to prescribe the weight and position of all

business machines and mechanical

 

15

 

equipment, including safes,

which shall be placed so as to distribute the weight.  Business machines and mechanical equipment shall be placed and

maintained by Tenant at Tenant’s expense in settings sufficient, in Landlord’s

judgment, to absorb and prevent vibration, noise and annoyance.  Tenant shall not move any safe, heavy

machinery, heavy equipment, freight, bulky matter or fixtures into or out of

the Building without Landlord’s prior consent, which consent may include a

requirement to provide insurance in such amounts as Landlord may deem

reasonable.

 

b.                                      If any such

safe, machinery, equipment, freight, bulky matter or fixtures requires special

handling, Tenant agrees to employ only persons holding a Master Rigger’s

License to do such work, and that all work in connection therewith shall comply

with applicable laws and regulations. 

Any such moving shall be at the sole risk and hazard of Tenant, and

Tenant will exonerate, indemnify and save Landlord harmless against and from

any liability, loss, injury, claim or suit resulting directly or indirectly

from such moving.

 

7.4           Building

Services

 

a.                                       Landlord shall,

on Business Days from 7:00 a.m. to 7:00 p.m. (except on Saturdays only from

9:00 a.m. to 12:00 p.m., provided that Saturday hours for the first floor space

shall be 9:00 a.m. to 5:00 p.m.) (“Normal Business Hours”), furnish heating and

cooling as normal seasonal changes and the Massachusetts State Building Code

may require to provide reasonably comfortable space temperature and ventilation

for occupants of the Premises under normal business operation at an occupancy

of not more than one person per 150 square feet of Premises Rentable Area and

an electrical load not exceeding approximately ten (10) watts per square foot

of Premises Rentable Area.  If Tenant

shall require air conditioning, heating or ventilation outside the hours and

days above specified, Landlord shall furnish such service and Tenant shall pay

therefor such charges as may from time to time be in effect.  In the event Tenant introduces into the

Premises personnel or equipment which exceeds the standards set forth above or

in any other way interferes with the Building system’s ability to perform

adequately its proper functions, supplementary systems may, if and as needed,

at Landlord’s option, be provided by Landlord, at Tenant’s expense.  Except in the case of emergency or a

scheduled closing of the Building, Landlord shall provide to Tenant (subject to

reasonable security procedures which may be imposed by Landlord) access to the

Building, an elevator and the loading dock twenty-four hours per day.

 

                                                b.             Landlord shall also provide:

 

i.                                          Hot water for

lavatory purposes and cold water (at temperatures supplied by the Town of

Weymouth) for drinking, lavatory, and toilet purposes.  If Tenant uses water for any purpose other

than as set forth in the preceding sentence, Landlord may assess a reasonable

charge for the additional water so used, or install a water meter and thereby

measure Tenant’s water

 

16

 

consumption for all

purposes.  In the latter event, Tenant

shall pay the cost of the meter and the cost of installation thereof and shall

keep such meter and installation equipment in good working order and

repair.  Tenant agrees to pay for water

consumed, as shown on such meter, together with the sewer charge based on such

meter changes, as and when bills are rendered, and in default in making such

payment Landlord may pay such charges and collect the same from Tenant as an

additional charge hereunder.  All piping

and other equipment and facilities required for use of water outside the

Building core will be installed and maintained by Landlord at Tenant’s sole

cost and expense.

 

ii.                                       Cleaning and

janitorial services to the Premises, provided the same are kept in order by

Tenant, in accordance with the cleaning standards set forth in Schedule CS

attached hereto.

 

iii.                                    Passenger

elevator service from the existing passenger elevator system in common with

Landlord and other tenants of the Building.

 

7.5           Electricity

 

a.                                       Landlord shall

supply electricity to the Premises to supply a requirement not to exceed

approximately ten (10) watts per square foot of Premises Rentable Area and

Tenant agrees in its use of the Premises not to exceed such requirement and

that its total connected lighting load will not exceed the maximum from time to

time permitted under applicable governmental regulations.  Except as set forth in Exhibit C, Landlord

shall purchase and install all lamps, tubes, bulbs, starters and ballasts for

all original fluorescent tubes within the Premises.  All other bulbs, tubes and lighting fixtures for the Premises

shall be provided and installed by Landlord at Tenant’s cost and expense.  In order to assure that the foregoing

requirements are not exceeded and to avert possible adverse affect on the

Building’s electric system, Tenant shall not, without Landlord’s prior consent,

connect any fixtures, appliances or equipment to the Building’s electric

distribution system other than standard office equipment including, without

limitation, personal computers, printers, photocopiers and fax machines.

 

b.                                      Landlord shall

install at Landlord’s expense a separate meter or submeter which shall measure

electric consumption (including electricity consumed in connection with the

operation of the variable-air-volume (VAV) boxes used to heat and cool the

Premises for after normal business hours operation) in the Premises, to be

charged in accordance with Section 7.4.a above.  Tenant shall pay as additional rent all amounts billed by the

applicable utility company when due directly to the utility company.  If, for any reason, such utility charges are

not separately metered or submetered at any time during the Term, Tenant shall

pay as additional rent all reasonably allocated charges attributable to the

furnishing of electricity to the Premises.

 

17

 

c.                                       In the

computation of Operating Costs, only the cost of electricity supplied to those

portions of the Building other than those intended to be leased to tenants for

their exclusive use and occupancy, or used by the Building for its own offices,

i.e., only those areas which are so-called common areas, shall be included.

 

7.6           Interruption

of Services

 

a.                                       Landlord

reserves the right to stop the service of heating, air-conditioning,

ventilating, elevator, plumbing, electricity or other mechanical systems or

facilities in the Building, if necessary by reason of accident or emergency, or

for repairs, alterations, replacements, additions or improvements which, in the

reasonable judgment of Landlord, are desirable or necessary until said repairs,

alterations, replacements, additions or improvements shall have been

completed.  The exercise of such right

by Landlord shall not constitute an actual or constructive eviction, in whole

or in part, or relieve Tenant from any of its obligations under this Lease, or

impose any liability upon Landlord or its agents by reason of inconvenience or

annoyance to Tenant, or injury to, or interruption of, Tenant’s business, or

otherwise, or entitle Tenant to any abatement or diminution of rent.  Except in case of emergency repairs, Landlord

will give Tenant reasonable advance notice of any contemplated stoppage of any

such systems or facilities pursuant to the foregoing and will use diligence to

complete any such repairs, alterations, replacements, additions or improvements

promptly.  Landlord shall also perform

any such work in a manner designated to minimize interference with Tenant’s

normal business operations.

 

b.                                      If Landlord

shall fail to supply, or be delayed n supplying any service expressly or

impliedly to be supplied under this Lease, or shall be unable to make, or be delayed

n making, any repairs, alterations, additions, improvements or decorations, or

shall be unable to supply, or be delayed in supplying, any equipment or

fixtures, and if such failure, delay or inability shall not constitute an

actual or constructive eviction, in whole or in part, or relieve Tenant from

any of its obligations under this Lease, or impose any liability upon Landlord

or its agents by reason of inconvenience or annoyance to Tenant, or injury to,

or interruption of, Tenant’s business, or otherwise, or entitle Tenant to any

abatement or diminution of rent.

 

ARTICLE

VIII

REAL ESTATE TAXES

 

8.1           Payments on

Account or Real Estate Taxes

 

a.                                       For the

purposes of this Article, the term “Tax Year” shall mean the twelve (12) month

period commencing on July 1, 2003, and each twelve (12) month period thereafter

during the Term of this Lease; and the term “Taxes” shall mean real estate

taxes assessed with respect to the Property for any Tax Year.  “Taxes” shall exclude (a) federal, state or

local income, franchise or estate taxes and (b) interest

 

18

 

and penalties assessed by

reason of Landlord’s failure to pay such real estate taxes when due (provided

that Tenant makes payment to Landlord of such real estate taxes when due,

otherwise Tenant shall be responsible for that portion of interest and

penalties attributable to its late payment). 

If any special taxes or assessment shall be levied against the Building,

Landlord shall elect to pay such special tax or assessment over the longest

period of time allowed by law.

 

b.                                      In the event

that for any reason, Taxes shall be greater during any Tax Year than Base

Taxes, Tenant shall pay to Landlord, as an Escalation Charge, an amount equal

to:

 

i.              The excess of Taxes over Base

Taxes, multiplied by,

 

ii                                          The Escalation

Factor, such amount to be apportioned for any fraction of a Tax Year in which

the Commencement Date falls or the Term of this Lease ends.

 

c.                                       Estimated

payments by Tenant on account of Taxes shall be made monthly and at the time

and in the fashion herein provided for the payment of Basic Rent.  The monthly amount so to be paid to Landlord

shall equal to one-twelfth (1/12) of the amount required to be paid (if any) by

Tenant pursuant to Paragraph b. above for the preceding Tax Year.  Promptly after receipt by Landlord of bills

for such Taxes, Landlord shall advise Tenant of the amount thereof and the

computation of Tenant’s payment on account thereof.  If estimated payments theretofore made by Tenant for the Tax Year

covered by such bills exceed the required payments on account thereof for such

Tax Year, Landlord shall credit the amount of overpayment against subsequent

obligations of Tenant on account of real estate taxes (or refund such

overpayment if the Term of this Lease has ended and Tenant has no further

obligation to Landlord); but if the required payments on account thereof for

such Tax Year are greater than estimated payments theretofore made on account

thereof for such Tax Year, Tenant shall make payment to Landlord within thirty

(30) days after being so advised by Landlord. 

Landlord shall have the same rights and remedies for the nonpayment by

Tenant of any payments due on account of such Taxes as Landlord has hereunder

for the failure of Tenant to pay Basic Rent.

 

8.2           Abatement

 

                                                If Landlord

shall receive any tax refund or reimbursement of Taxes or sum in lieu thereof

with respect to any Tax Year, then out of any balance remaining thereof after

deducting Landlord’s expenses reasonably incurred in obtaining such refund,

Landlord shall pay to Tenant, provided there does not then exist a Default of

Tenant, an amount equal to such refund or reimbursement or sum in lieu thereof

(exclusive of interest) multiplied by the Escalation Factor and adjusted for any

partial year; provided, that in no event shall Tenant be entitled to receive

more than the amount of any payments made by Tenant on account of real estate

Tax increases for such Tax Year pursuant to Paragraph b. of Section 8.1.

 

19

 

8.3           Alternate

Taxes

 

a.                                       If some method

or type of taxation shall replace the current method of assessment of real

estate taxes, or the type thereof, the Tenant agrees that Tenant shall pay an

equitable share of the same computed in a fashion consistent with the method of

computation herein provided, to the end that Tenant’s share thereof shall be,

to the maximum extent practicable, comparable to that which Tenant would bear

under the foregoing provisions.

 

b.                                      If a tax (other

than a Federal or State net income tax) is assessed on account of the rents or

other charges payable by Tenant to Landlord under this Lease, Tenant agrees to

pay the same within ten (10) days after billing therefor, unless applicable law

prohibits the payment of such tax by Tenant. 

Landlord shall have the same rights and remedies for nonpayment by

Tenant of any such amounts as Landlord has hereunder for the failure of Tenant

to pay Basic Rent.

 

ARTICLE

IX

OPERATING EXPENSES

 

9.1           Definitions

 

For the purposes of this

Article, the following terms shall have the following respective meanings:

 

Operating Year:  Each calendar year in which any part of the Term of this Lease

shall fall.

 

Operating Expenses:  The aggregate costs or expenses reasonably incurred by Landlord

with respect to the operation, administration, cleaning, repair, maintenance

and management of the Property including, without limitation, those items

enumerated in Exhibit C annexed hereto, provided that, if during any portion of

the Operating Year for which Operating Expenses are being computed, less than

95% of the Building Rentable Area was occupied by tenants, actual operating

expenses incurred shall be reasonably extrapolated by Landlord on an item basis

to the estimated operational expenses that would have been incurred if the

Building were 95% occupied for such Operating Year, and such extrapolated

amount shall, for the purposes hereof, be deemed to be the Operating Expenses

for such Operating Year.

 

9.2           Tenant’s

Payment

 

a.                                       In the event

that Operating Expenses for any Operating Year shall be greater than Base

Operating Expenses, Tenant shall pay to Landlord, as an Escalation Charge, an

amount equal to:

 

i.                                          The excess of

the Operating Expenses for such Year over and above Base Operating Expenses,

multiplied by,

 

20

 

ii.                                       The Escalation

Factor, such amount to be apportioned for any Operating Year in which the

Commencement Date falls or the Term of this Lease ends.

 

b.                                      Estimated

payments by Tenant on account of Operating Expenses shall be made monthly and

at the time and in the fashion herein provided for the payment of Basic

Rent.  The monthly amount so to be paid

to Landlord shall be sufficient to provide Landlord by the end of each

Operating Year a sum equal to Tenant’s required payments (if any) on account of

Operating Expenses for the preceding Operating Year.  Promptly after the end of each Operating Year, Landlord shall

submit to Tenant a reasonably detailed accounting of Operating Expenses for such

Operating Year, and Landlord shall certify the accuracy thereof.  If estimated payments theretofore made for

such Operating Year by Tenant exceed Tenant’s required payment on account

thereof for such Operating Year, according to such statement, Landlord shall

credit the amount of overpayment against subsequent obligations of Tenant with

respect to Operating Expenses (or refund such overpayment if the Term of this

Lease has ended and Tenant has no further obligation to Landlord); but, if the

required payments on account thereof for such Operating Year are greater than

the estimated payments (if any) theretofore made on account thereof for such

Operating Year, Tenant shall make payment to Landlord within ten (10) days

after being so advised by Landlord.  Landlord

shall have the same rights and remedies for the nonpayment by Tenant of any

payments due on account of Operating Expenses as Landlord has hereunder for the

failure of Tenant to pay Basic Rent.

 

c.                                       Tenant shall

have the right, no more often than once in an Operating Year, exercisable

within ninety (90) days following the delivery to Tenant of the accounting

referred to in Paragraph 9.2(b) and upon reasonable prior notice to Landlord,

to inspect Landlord’s books and records relating to Operating Expenses and

Taxes for the Operating Year covered by such accounting.  Only employees of Tenant, or Tenant’s

certified public accountant or accounting firm (provided that such accountant

or accounting firm is then responsible for Tenant’s general corporate accounting),

may conduct any such inspection, which inspection shall occur at such place and

time (during normal business hours) as Landlord may reasonably designate.  Tenant shall pay for all reasonable expenses

incurred by Landlord in connection with, and relating directly to, Tenant’s

inspection of Landlord’s books and records, provided that if such audit

discloses an overpayment by Tenant of more than five percent (5%), Landlord

shall reimburse Tenant for its reasonable third party costs incurred in connection

with the audit.  In any event, Landlord

shall reimburse Tenant the amount of any overpayment.

 

21

 

ARTICLE

X

INDEMNITY AND PUBLIC LIABILITY INSURANCE

 

10.1         Tenant’s

Indemnity

 

To the maximum extent this

Agreement may be made effective according to law, Tenant agrees to indemnify

and save harmless Landlord from and against all claims, actions or proceedings

of whatever nature arising from any act, omission or negligence of Tenant or

Tenant’s contractors, licensees agents, servants or employees or arising from

any accident, injury or damage whatsoever caused to any person, or to the

property of any person, occurring after the date of this Lease until the end of

the Term of this Lease and thereafter, so long as Tenant is in occupancy of any

part of the Premises, in or about the Premises, or arising from any accident,

injury or damage occurring outside of the Premises but on the Property, where

such accident, damage or injury results or is claimed to have resulted from an

act or omission on the part of Tenant or Tenant’s agents or employees or

independent contractors.  This indemnity

and hold harmless agreement shall include indemnity against all costs, expenses

and liabilities incurred in or in connection with any such claim, action or

proceeding brought thereon, and the defense thereof.

 

10.2         Public

Liability Insurance

 

Tenant agrees to maintain in

full force from the date upon which Tenant first enters the Premises for any

reason, throughout the Term of this Lease, and thereafter so long as Tenant is

in occupancy of any part of the Premises, a policy of general liability and

property damage insurance under which Landlord (and such other persons as are

in privity of estate with Landlord as may be set out in notice from Landlord to

Tenant from time to time) and Tenant are named as insureds, and under which the

insurer agrees to indemnify and hold Landlord, and those in privity of estate

with Landlord, harmless from and against all cost, expense and/or liability arising

out of or based upon any and all claims, accidents, injuries and damages set

forth in Section 10.1.  Each such policy

shall be non-cancelable and non-amendable with respect to Landlord and

Landlord’s said designees without twenty (20) days prior notice to Landlord and

shall be in at least the amounts of the Public Liability Insurance specified in

Section 1.2, and a duplicate original or certificate thereof evidencing broad

form contractual liability, independent contractor’s hazard and completed operation

coverage and waiver of subrogation shall be delivered to Landlord.

 

10.3         Tenant’s

Risk

 

To the maximum extent this

Agreement may be made effective according to law, Tenant agrees to use and

occupy the Premises and to use such other portions of the Building as Tenant is

herein given the right to use at Tenant’s own risk; and Landlord shall have no

responsibility or liability for any loss of or damage to Tenant’s Removable

Property.  The provisions of this Section

shall be applicable from and after the execution of this Lease and until the

end of the Term of this Lease, and during such further period as Tenant may use

or be in occupancy of any part of the Premises or of the Building.

 

10.4         Injury

Caused by Third Parties

 

To the maximum extent this

Agreement may be made effective according to law, Tenant agrees that Landlord

shall not be responsible or liable to Tenant, or to those claiming by,

 

22

 

through or under Tenant, for

any loss or damage that may be occasioned by or through the acts or omissions

of persons occupying adjoining premises or any part of the Premises adjacent to

or connecting with the Premises or any part of the Property or otherwise.

 

10.5         Landlord’s

Insurance

 

Landlord shall take out and

maintain throughout the Term of this Lease commercial general liability

insurance for the Building and all risk fire and casualty insurance in amounts

customarily carried by landlords with respect to similar buildings in the area

with such policy limits as Landlord may consider appropriate.  Upon request by Tenant, Landlord shall

provide a certificate evidencing the foregoing insurance.

 

10.6         Waiver of

Subrogation

 

Any insurance carried by

either party with respect to the Property or property therein or occurrences

thereon shall include a clause or endorsement denying to the insurer rights of

subrogation against the other party to the extent rights have been waived by

the insured before occurrence of injury or loss.  Each party, notwithstanding any provisions of this Lease to the

contrary, hereby waives any rights of recovery against the other for injury or

loss due to hazards covered by such insurance to the extent of the

indemnification received thereunder.

 

10.7         Landlord’s

Indemnity

 

Landlord shall defend, with

counsel reasonably approved by Tenant, all actions against Tenant, any partner,

trustee, stockholder, officer, director, employee or beneficiary of Tenant

(herein, “Indemnified Parties”) with respect to, and shall pay, protect,

indemnify and save harmless, to the extent permitted by law, all Indemnified

Parties from and against, any and all liabilities, losses, damages, costs,

expenses (including reasonable attorneys’ fees and expenses), causes of action,

suits, claims, demands or judgments of any nature arising from (a) injury to or

death of any person, or damage to or loss of property, on or about the Premises

or on adjoining sidewalks, streets or ways, arising from the negligence or

willful misconduct of Landlord or its employees, contractors or agents, except

with respect to an Indemnified Party, to the extent caused by its negligence,

or (b) a breach of the representations set forth in Section 4.4.

 

23

 

ARTICLE

XI

LANDLORD’S ACCESS TO PREMISES

 

11.1         Landlord’s

Rights

 

Landlord shall have the

right to enter the Premises at all reasonable hours, upon reasonable prior

notice (except in case of emergency) for the purpose of inspecting or making

repairs to the same, and Landlord shall also have the right, upon reasonable

prior notice to Tenant, to make access available at all reasonable hours to

prospective or existing mortgagees, purchasers or tenants of any part of the

Property.

 

ARTICLE

XII

FIRE, EMINENT DOMAIN, ETC.

 

12.1         Abatement of

Rent

 

If the Premises are damaged

by fire or other casualty in the Building, Basic Rent and Escalation Charges

payable by Tenant shall abate proportionately for the period in which, by

reason of such damage, there is substantial interference with Tenant’s use of

the Premises, having regard to the extent to which Tenant may be required to

discontinue Tenant’s use of all or a portion of the Premises, but such

abatement or reduction shall end if and when Landlord shall have substantially

restored the Premises to the condition in which they were before such

damage.  If the Premises are affected by

any exercise of the power of eminent domain, Basic Rent and Escalation Charges

payable by Tenant shall be justly and equitably abated and reduced according to

the nature and extent of the loss of use thereof suffered by Tenant.

 

12.2         Right of

Termination

 

If the Premises or the

Property are substantially damaged by fire or casualty (the term “substantially

damaged” meaning damage of such a character that the same cannot, in ordinary

course, reasonably be expected to be repaired within nine (9) months from the

time that repair work would commence), or, if as a result of any exercise of

the right of eminent domain more than thirty percent (30%) of the Building or

the Property is taken or a material portion of the parking is taken or there is

a material impact on access to the Property (collectively, a “Taking”), then

either party shall have the right to terminate this Lease (even if Landlord’s

entire interest in the Premises may have been divested) by giving to the other

party notice of such party’s election so to do within sixty (60) days after the

occurrence of such casualty or the effective date of such Taking, whereupon

this Lease shall terminate thirty (30) days after the date of such notice with

the same force and effect as if such date were the date originally established

as the expiration date hereof.

 

24

 

12.3         Restoration

 

If this Lease shall not be

terminated pursuant to Section 12.2, Landlord shall thereafter use due

diligence to restore the Premises to proper condition for Tenant’s use and

occupation, provided that Landlord’s obligation shall be limited to the amount

of insurance proceeds available therefor. 

If, for any reason (including, without limitation, insufficiency or

unavailability of insurance proceeds), such restoration shall not be

substantially completed within nine (9) months from the time that repair work

would commence in the case of damage by fire or casualty or from the effective

date of the Taking, as applicable (which nine (9) month period may be extended

for such periods of time as Landlord is prevented from proceeding with or

completing such restoration for any cause beyond Landlord’s reasonable control,

but in no event for more than an additional three (3) months), Tenant shall

have the right to terminate this Lease by giving notice to Landlord thereof

within thirty (30) days after the expiration of such period (as so

extended).  Upon the giving of such

notice, this Lease shall cease and come to an end without further liability or

obligation on the part of either party unless, within such thirty (30) day

period, Landlord substantially completes such restoration.  Such right of termination shall be Tenant’s

sole and exclusive remedy at law or in equity for Landlord’s failure so to

complete such restoration.

 

12.4         Award

 

Landlord shall have and

hereby reserves and excepts, and Tenant hereby grants and assigns to Landlord,

all rights to recover for damage to the Property and the leasehold interest

hereby created, and to compensation accrued or hereafter to accrue by reason of

such taking, damage or destruction, and by way of confirming the foregoing,

Tenant hereby grants and assigns, and covenants with Landlord to grant and

assign to Landlord, all rights to such damages or compensation.  Nothing contained herein shall be construed

to prevent Tenant from prosecuting in any condemnation proceedings a claim for

the value of any of Tenant’s Removable Property installed in the Premises by

Tenant at Tenant’s expense and for relocation expenses, provided that such

action shall not affect the amount of compensation otherwise recoverable by

Landlord form the taking authority.

 

ARTICLE

XIII

DEFAULT

 

13.1         Default

 

If at any time subsequent to

the date of this Lease any one or more of the following events (herein referred

to as a “Default of Tenant”) shall happen:

 

a.                                       Tenant shall

fail to pay the Basic Rent, Escalation Charges or other charges hereunder when

due and such failure shall continue for five (5) Business Days after notice to

Tenant from Landlord; or

 

25

 

b.                                      Tenant shall

neglect or fail to perform or observe any other convenant herein contained on

Tenant’s part to be performed or observed and Tenant shall fail to remedy the

same within thirty (30) days after notice to Tenant specifying such neglect or

failure, or if such failure is of such a nature that Tenant cannot reasonably

remedy the same within such thirty (30) day period, Tenant shall fail to

commence promptly to remedy the same and to prosecute such remedy to completion

with diligence and continuity but in no event shall such period exceed ninety

(90) days; or

 

c.                                       Tenant’s

leasehold interest in the Premises shall be taken on execution or by other

process of law directed against Tenant; or

 

d.                                      Tenant shall

make an assignment for the benefit of creditors or shall file a voluntary

petition in bankruptcy or shall be adjudicated bankrupt or insolvent, or shall

file any petition or answer seeking any reorganization, arrangement,

composition, readjustment, liquidation, dissolution or similar relief for

itself under any present or future Federal, State or other statute, law or

regulation for the relief of debtors, or shall seek or consent to or acquiesce

in the appointment of any trustee, receiver or liquidator of Tenant or of all

or any substantial part of its properties, or shall admit in writing its

inability to pay its debts generally as they become due; or

 

e.                                       A petition

shall be filed against Tenant in bankruptcy or under any other law seeking any

reorganization, arrangement, composition, readjustment, liquidation,

dissolution, or similar relief under any present or future Federal, State or

other statute, law or regulation and shall remain undismissed or unstayed for

an aggregate of ninety (90) days (whether or not consecutive), or if any debtor

in possession (whether or not Tenant) trustee, receiver or liquidator of Tenant

or of all or any substantial part of its properties or of the Premises shall be

appointed without the consent or acquiescence of Tenant and such appointment

shall remain unvacated or unstayed for an aggregate of ninety (90) days

(whether or not consecutive);

 

f.                                         Or if Tenant

dissolves or is dissolved or liquidated or adopts any plan or commences any

proceeding, the result of which is intended to include dissolution or

liquidation;

 

g.                                      Then in any

such case:

 

i.                                   If such Default

of Tenant shall occur before the Commencement Date, this Lease shall ipso

facto, and without further act on the part of Landlord, terminate; and

 

ii.                                If such Default

of Tenant shall occur after the Commencement Date, Landlord may terminate this

Lease by notice to Tenant, specifying a date not less than ten (10) days after

the giving of such notice on which this Lease shall terminate and this Lease

shall come to an end on the date

 

26

 

specified

therein as fully and completely as if such date were the date herein originally

fixed for the expiration of the Term of this Lease (Tenant hereby waiving any

rights of redemption under M.G.L. c. 186, or otherwise), and Tenant will then

quit and surrender the Premises to Landlord, but Tenant shall remain liable as

hereinafter provided.

 

Nothing

contained in this Lease shall, however, limit or prejudice the right of

Landlord to prove for and obtain in proceedings under any federal or state law

relating to bankruptcy or insolvency or reorganization or arrangement, an

amount equal to the maximum allowed by any statute or rule of law in effect at

the time when, and governing the proceedings in which, the damages are to be

proved, whether or not the amount be greater than the amount of the loss or

damages referred to above.

 

13.2         Remedies

 

a.                                       If this Lease

shall have been terminated as provided in this Article, or if any execution or

attachment shall be issued against Tenant or any of Tenant’s property whereupon

the Premises shall be taken or occupied by someone other than Tenant, then

Landlord may, without notice, re-enter the Premises, either by force, summary

proceedings, ejectment or otherwise, and remove and dispossess Tenant and all

other persons and any and all property from the same, as if this Lease had not

been made, and Tenant hereby waives the service of notice of intention to

re-enter or to institute legal proceedings to that end.

 

b.                                      In the event of

any termination, Tenant shall pay the Basic Rent, Escalation Charges and other

sums payable hereunder up to the time of such termination, and thereafter

Tenant, until the end of what would have been the Term of this Lease in the

absence of such termination, and whether or not the Premises shall have been

re-let, shall be liable to Landlord for, and shall pay to Landlord, as current

damages, the Basic Rent, Escalation Charges and other sums which would be

payable hereunder if such termination had not occurred, less the net proceeds,

if any, of any re-letting of the Premises, after deducting all expenses in

connection with such re-letting, including, without limitation, all

repossession costs, brokerage commissions, legal expenses, attorneys’ fees,

advertising, expenses of employees, alteration costs and expenses of

preparation for such re-letting. Tenant shall pay such current damages to

Landlord monthly on the days which the Basic Rent would have been payable

hereunder if this Lease had not been terminated.  Landlord shall use commercially reasonable efforts to relet the

Premises, which convenant shall be deemed satisfied by Landlord’s engagement of

a commercially reputable broker to market the Premises for releasing.

 

c.                                       At any time

after such termination, whether or not Landlord shall have collected any such

current damages, Landlord may demand, as liquidated final damages and in lieu

of all such current damages beyond the date of such demand, and Tenant shall

pay to Landlord an amount equal to the excess, if any, of the Basic Rent,

Escalation Charges and other sums as hereinbefore provided which would

 

27

 

be payable hereunder from

the date of such demand (assuming that, for the purposes of this paragraph,

annual payments by Tenant on account of Taxes and Operating Expenses would be

the same as the payments required for the immediately preceding Operating or Tax

Year) for what remained, over the Term of this Lease if the same remained in

effect, over the then fair net rental value of the Premises for the same

period.

 

d.                                      In case of any

Default by Tenant, re-entry, expiration and dispossession by summary proceedings

or otherwise, Landlord may:

 

i.                                          Re-let the

Premises or any part or parts thereof, either in the name of Landlord or

otherwise, for a term or terms which may at Landlord’s option be equal to or

less than or exceed the period which would otherwise have constituted the

balance of the Term of this Lease and may grant concessions or free rent to the

extent that Landlord considers advisable and necessary to re-let the same; and

 

ii.                                       May make such

reasonable alterations, repairs and decorations in the Premises as Landlord in

its sole judgment considers advisable and necessary for the purpose of

re-letting the Premises; and the making of such alterations, repairs and

decorations shall not operate or be construed to release Tenant from liability

hereunder as aforesaid.  Landlord shall

in no event be liable in any way whatsoever for failure to re-let the Premises,

or, in the event that the Premises are re-let, for failure to collect the rent

under such re-letting.  Tenant hereby

expressly waives any and all rights of redemption granted by or under any

present or future laws in the event of Tenant being evicted or dispossessed, or

in the event of Landlord obtaining possession of the Premises, by reason of the

violation by Tenant of any of the covenants and conditions of this Lease.

 

e.                                       If a Guarantor

of this Lease is named in Section 1.2, the happening of any of the events

described in of this Section 13.1(d) or (e) with respect to the Guarantor shall

constitute a Default of Tenant hereunder.

 

f.                                         The specified

remedies to which Landlord may resort hereunder are not intended to be

exclusive of any remedies or means of redress to which Landlord may at any time

be entitled lawfully, and Landlord may invoke any remedy (including the remedy

of specific performance) allowed at law or in equity as if specific remedies

were not herein provided for.

 

g.                                      All costs and

expenses incurred by or on behalf of Landlord (including, without limitation,

attorneys’ fees and expenses) in enforcing its rights hereunder or occasioned

by any Default of Tenant shall be paid by Tenant.

 

h.                                      Nothing

contained in this Lease shall limit or prejudice the right of Landlord to prove

for and obtain in proceedings for bankruptcy or insolvency by reason of the

termination of this Lease, an amount equal to the maximum allowed by any

 

28

 

statue or rule of law in

effect at the time when, and governing the proceedings in which, the damages

are to be proved, whether or not the amount be greater, equal to or less than

the amount of the loss or damages referred to above.

 

ARTICLE

XIV

MISCELLANEOUS PROVISIONS AND

TENANT’S ADDITIONAL COVENANTS

 

14.1         Extra

Hazardous Use

 

Tenant covenants and agrees

that Tenant will not do or permit anything to be done in or upon the Premises,

or bring in anything or keep anything therein, which shall increase the rate of

property or liability insurance on the Premises or of the Building above the

standard rate applicable to premises occupied for Premitted Uses; and Tenant

further agrees that, in the event that Tenant shall do any of the foregoing,

Tenant will promptly pay to Landlord, on demand, any such increase resulting

therefrom, which shall be due and payable as an additional charge hereunder.

 

14.2         Waiver

 

a.                                       Failure on the

part of Landlord or Tenant to complain of any action or non-action on the part

of the other, no matter how long the same may continue, shall never be a waiver

by Tenant or Landlord, respectively, of any of the other’s rights hereunder.

Further, no waiver at any time of any of the provisions hereof by Landlord or

Tenant shall be construed as a waiver of any of the other provisions hereof,

and a waiver at any time of any of the provisions hereof shall not be construed

as a waiver at any subsequent time of the same provisions.  The consent or approval of Landlord or

Tenant to or of any action by the other requiring such consent or approval

shall not be construed to waive or render unnecessary Landlord’s or Tenant’s

consent or approval to or of any subsequent similar act by the other.

 

b.                                      No payment by

Tenant, or acceptance by Landlord, of a lesser amount than shall be due from

Tenant to Landlord shall be treated otherwise than as a payment on

account.  The acceptance by Landlord of

a check for a lesser amount with an endorsement or statement thereon, or upon

any letter accompanying such a check, that such lesser amount is payment in

full, shall be given no effect, and Landlord may accept such check without

prejudice to any other  rights or

remedies which Landlord may have against Tenant.

 

14.3         Covenant of

Quiet Enjoyment

 

Tenant, subject to the terms

and provisions of this Lease, on payment of the Basic Rent and Escalation

Charges and other charges hereunder and observing, keeping and performing all

of the other terms and provisions of this Lease on Tenant’s part to be

observed, kept and performed, shall lawfully, peaceably and quietly have, hold,

occupy

 

29

 

and enjoy the Premises

during the term hereof, without hindrance or ejection by any persons lawfully

claiming under Landlord to have title to the Premises superior to Tenant; the

foregoing covenant of quiet enjoyment is in lieu of any other covenant, express

or implied.

 

14.4         Landlord’s

Liability

 

a.                                       No owner of the

Property shall be liable under this Lease except for breaches of Landlord’s

obligations occurring while owner of the Property.  The obligations of Landlord shall be binding upon the assets of

Landlord which comprise the Property but not upon other assets of Landlord.  No individual partner, trustee, stockholder,

officer, director, employee, member or beneficiary of Landlord shall be

personally liable under this Lease and Tenant shall look solely to Landlord’s

interest in the Property in pursuit of its remedies upon an event of default

hereunder, and the general assets of Landlord and of the individual partners,

trustees, stockholders, officers, employees, members or beneficiaries of

Landlord shall not be subject to levy, execution or other enforcement procedure

for the satisfaction of the remedies of Tenant.

 

b.                                      With respect to

any services or utilities to be furnished by Landlord to Tenant, Landlord shall

in no event be liable for failure to furnish the same when prevented from doing

so by strike, lockout, breakdown, accident, order or regulation of or by any

governmental authority, or failure of supply, or inability by the exercise of

reasonable diligence to obtain supplies, parts or employees necessary to

furnish such services, or because of war or other emergency, or for any cause

beyond Landlord’s reasonable control, or for cause due to any act or neglect of

Tenant or Tenant’s servants, agents, employees, licensees or any person

claiming by, through or under Tenant, subject to the provisions of Section 10.7

above.

 

c.                                       In no event

shall Landlord ever be liable to Tenant for any indirect or consequential

damages suffered by Tenant from whatever cause.

 

14.5         Notice to

Mortgagee

 

After receiving notice from

any person, firm or other entity that it holds a mortgage which includes the

Premises as part of the mortgaged premises, no notice from Tenant to Landlord

shall be effective unless and until a copy of the same is given to such holder

(provided Tenant shall have been furnished with the name and address of such holder),

and the curing of any of Landlord’s defaults by such holder shall be treated as

performance by Landlord.

 

14.6         Assignment

of Rents and Transfer of Titles

 

a.                                       With reference

to any assignment by Landlord of Landlord’s interest in this Lease, or the rents

payable hereunder, conditional in nature or otherwise, which assignment is made

to the holder of a mortgage on property which includes the Premises, Tenant

agrees that the execution thereof by Landlord, and the

 

30

 

acceptance thereof by the

holder of such mortgage shall never be treated as an assumption by such holder

of any of the obligations of Landlord hereunder unless such holder shall, by

notice sent to Tenant, specifically otherwise elect and that, except as

aforesaid, such holder shall be treated as having assumed Landlord’s

obligations hereunder only upon foreclosure of such holder’s mortgage and the

taking of possession of the Premises.

 

b.                                      In no event

shall the acquisition of title to the Property by a purchaser which,

simultaneously therewith, leases the entire Property back to the seller thereof

be treated as an assumption by operation of law or otherwise, of Landlord’s

obligations hereunder, but Tenant shall look solely to such seller-lessee, and

its successors from time to time in title, for performance of Landlord’s

obligations hereunder.  In any event,

this Lease shall be subject and subordinate to the lease between such

purchaser-lessor and seller-lessee.  For

all purposes, such seller-lessee, and its successors in title, shall be the

Landlord hereunder unless and until Landlord’s position shall have been assumed

by such purchaser-lessor.

 

c.                                       Tenant hereby

agrees that, except as provided in paragraph b. of this Section, in the event

of any transfer of title to the Property by Landlord, Landlord shall thereafter

be entirely freed and relieved from the performance and observance of all

covenants and obligations hereunder.

 

d.                                      Tenant hereby

agrees not to look to the mortgagee, as mortgagee, mortgagee in possession, or

successor in title to the property, for accountability for any security deposit

required by the Landlord hereunder, unless said sums have actually been

received by said mortgagee as security for the tenant’s performance of this Lease.

 

e.                                       Tenant shall

not pay rent more than one month in advance.

 

14.7         Rules and

Regulations

 

Tenant shall abide by rules

and regulations set forth on Exhibit A hereto and any other rules and

regulations reasonably established by Landlord from time to time, it being

agreed that such rules and regulations will be established and applied by

Landlord in a reasonable and non-discriminatory fashion, such that all rules

and regulations shall be generally applicable to other tenants, of similar

nature to the Tenant named herein, of the Building.  Landlord agrees to use reasonable efforts to insure that any such

rules and regulations are uniformly enforced, but Landlord shall not be liable

to Tenant for violation of the same by any other tenant or occupant of the Building,

or persons having business with them.

 

14.8         Additional

Charges

 

If Tenant shall fail to pay

when due any sums under this Lease designated as an additional charge, Landlord

shall have the same rights and remedies as Landlord has hereunder for failure

to pay Basic Rent.

 

31

 

14.9         Invalidity

of Particular Provisions

 

If any term or provision of

this Lease, or the application thereof to any person or circumstance shall, to

the extent, be invalid or unenforceable, the remainder of this Lease, or the

application of such term or provision to persons or circumstances other than

those as to which it is held invalid or unenforceable, shall not be affected

thereby, and each term and provision of this Lease shall be valid and be

enforced to the fullest extent permitted by law.

 

14.10       Provisions

Binding, Etc.

 

Except as herein otherwise

provided, the terms hereof shall be binding upon and shall inure to the benefit

of the successors and assigns, respectively, of Landlord and Tenant and, if

Tenant shall be an individual, upon and to his heirs, executors,

administrators, successors and assigns. 

Each term and each provision of this Lease to be performed by Tenant

shall be construed to be both a covenant and a condition.  The reference contained to successors and

assigns of Tenant is not intended to constitute a consent to assignment by

Tenant, but has reference only to those instances in which Landlord may later

give consent to a particular assignment as required by those provisions of

Article VI hereof.

 

14.11       Recording

 

Tenant agrees not to record

this Lease, but each party hereto agrees, on the request of the other, to

execute a so-called Notice of Lease in form recordable and complying with

applicable law and reasonably satisfactory to Landlord’s attorneys.  In no event shall such document set forth

the rent or other charges payable by Tenant under this Lease; and any such

document shall expressly state that it is executed pursuant to the provisions

contained in this Lease, and is not intended to vary the terms and conditions

of this Lease.  Upon termination of this

Lease, Tenant shall execute an instrument in recordable form acknowledging the

date of termination.

 

14.12       Notices

 

Whenever, by the terms of

this Lease, notices shall or may be given either to Landlord or to Tenant, such

notice shall be in writing and addressed as follows:

 

If Intended for Landlord:

 

Address to Landlord at

Landlord’s Original Address (or to such other address or addresses as may from

time to time hereafter be designated by Landlord by like notice).

 

If Intended for Tenant:

 

Address to Tenant at

Tenant’s Original Address (or to such other address or addresses as may from

time to time hereafter be designated by Landlord by like notice).

 

All such notices so

addressed shall be effective (i) when delivered, if hand delivered, or (ii) one

(1) day after deposit with a recognized overnight delivery service or (iii)

three (3) days after deposit with the U.S. Postal Service if mailed by

registered or certified mail, postage prepaid, return receipt requested.

 

32

 

14.13       When Lease

Becomes Binding

 

The submission of this

document for examination and negotiation does not constitute an offer to lease,

or a reservation of, or option for, the Premises, and this document shall

become effective and binding only upon the execution and delivery hereof by

both Landlord and Tenant.  All

negotiations, considerations, representations and understandings between Landlord

and Tenant are incorporated herein and this Lease expressly supersedes any

proposals or other written documents relating hereto.  This Lease may be modified or altered only by written agreement

between Landlord and Tenant, and no act or omission of any employee or agent of

Landlord shall alter, change or modify any of the provisions hereof.

 

14.14       Paragraph

Headings

 

The paragraph headings

throughout this instrument are for convenience and reference only, and the

words contained therein shall in no way be held to explain, modify, amplify or

aid in the interpretation, construction or meaning of the provisions of this

Lease.

 

14.15       Rights of

Mortgagee

 

Landlord hereby represents

to Tenant that the only mortgage encumbering the Property as of the date of this

Lease is held by Cambridge Savings Bank. 

Landlord hereby agrees to provide to Tenant a Subordination

Non-Disturbance Agreement (as defined below) from Cambridge Savings Bank with

respect to this Lease

 

Any mortgage or other

voluntary lien or other encumbrance recorded subsequent to the recording of the

notice of this Lease shall be subject and subordinate to this Lease unless

Landlord and the holder of any such subsequent mortgage and the holders of all

mortgages prior to such subsequent mortgage elect to subordinate this Lease to

such subsequent mortgage and to any and all advances thereafter made thereunder

and to the interest of the holder thereof in the Premises, such election to be

exercisable by Landlord and all such holders by filing with the appropriate

recording office (a) a notice of such election and (b) an agreement

(“Subordination Non-Disturbance Agreement”) between the holder of such

subsequent mortgage and Tenant, consented to by holders of all mortgages having

priority over such subsequent mortgage, by the terms of which such holder will

agree to recognize the rights of Tenant under this Lease and to accept Tenant

as tenant of the Premises under the terms and conditions of this Lease in the

event of acquisition of title by such holder through foreclosure proceedings or

otherwise and Tenant will agree to recognize the holder of such subsequent

mortgage as Landlord in such event, which agreement shall be made expressly to

bind and inure to the benefit of the successors and assigns of Tenant and of

such holder and upon anyone purchasing said Premises at any foreclosure sale

brought by such holder.  Tenant and

Landlord agree to execute and deliver any appropriate instruments necessary to

carry out the agreements contained in this Section 14.15.  Any such subsequent mortgage to which this

Lease is subordinated may contain such terms, provisions and conditions as the

holder deems usual or customary. 

Subject to the forgoing, in the event that any mortgagee or its

respective successor in title shall succeed to the interest of Landlord, then

this Lease shall

 

33

 

continue in full force and

effect and Tenant shall and does hereby agree to attorn to such mortgagee or

successor and to recognize such mortgagee or successor as its Landlord.

 

14.16       Status

Report

 

Tenant shall from time to

time, upon not less than fifteen (15) days prior written request by Landlord,

execute, acknowledge and deliver to the Landlord a statement in writing

certifying that this Lease in unmodified and in full force and effect and that

there are no uncured defaults of Landlord or Tenant under this Lease, that

Tenant has no defenses, offsets or counterclaims against its obligations to pay

the Base Rent, Escalation Charges and other charges hereunder and to perform

its other covenants under this Lease and that there are no uncured defaults of

the Landlord or Tenant under this Lease (or, if there have been any

modifications that the same is in full force and effect as modified and stating

the modifications and, if there are any defenses, offsets, counterclaims, or

defaults, setting them forth in reasonable detail), and the dates to which the

Base Rent, Escalation Charges and other charges hereunder have been paid.  Any such statement delivered pursuant to

this Section 14.16 may be relied upon by a prospective purchaser or mortgagee

of the Premises or any prospective assignee of any mortgagee of the

Premises.  Failure of Tenant to respond

to such request within such time shall be deemed an acknowledgment by Tenant

that the facts recited in such request are correct.

 

14.17       Security

Deposit

 

Tenant shall pay the

security deposit identified in Section 1.2 above to Landlord upon execution and

delivery of this Lease.  Landlord shall

hold the same throughout the term of this Lease as security for the performance

by Tenant of all obligations on the part of Tenant hereunder.  Landlord shall have the right from time to

time without prejudice to any other remedy Landlord may have on account

thereof, to apply such deposit, or any part thereof, to Landlord’s damages

arising from any default on the part of Tenant.  If there is then existing no Default of Tenant, Landlord shall

return the deposit, less so much thereof as shall have theretofore been applied

in accordance with the terms of this Section 14.17, to Tenant on the expiration

or earlier termination of the Term of this Lease and surrender of possession of

the Premises by Tenant to Landlord at such time.  While Landlord holds such deposit, Landlord shall have no

obligation to pay interest on the same and shall have the right to commingle

the same with Landlord’s other funds. 

If Landlord conveys Landlord’s interest under this Lease, the deposit,

or any part thereof not previously applied, may be turned over by Landlord to

Landlord’s grantee, and, if so turned over, Tenant agrees to look solely to

such grantee for proper application of the deposit in accordance with the terms

of this Section 14.17, and the return thereof in accordance herewith.  The holder of a mortgage shall not be

responsible to Tenant for the return or application of any such deposit,

whether or not it succeeds to the position of Landlord hereunder, unless such

deposit shall have been received in hand by such holder.

 

14.18       Remedying

Defaults; Late Payments

 

If Tenant shall at any time

default in the performance of any obligation under this Lease after the

expiration of the grace period set forth in Section 13.b above (except in case

of

 

34

 

emergency, in which case

Landlord may act immediately), Landlord shall have the right, but not the

obligation, to enter upon the Premises and to perform such obligation

notwithstanding the fact that no specific provision for such substituted

performance is made in the Lease with respect to such default.  In performing such obligation, Landlord may

make any payment of money or perform any other act.  In the event of the exercise of such right by Landlord, Tenant

agrees to pay to Landlord forthwith upon demand all such sums, together with

interest thereon at a rate equal to 3% over the prime rate in effect from time

to time, as published in the Wall Street Journal (but in no event less than 18%

per annum or more than the maximum rate allowed by law), as an additional

charge.  Any payment of Basic Rent,

Escalation Charges or other charges payable hereunder not paid when due shall

bear interest at a rate equal to 3% over the prime rate in effect from time to

time, as published in the Wall Street Journal (but in no event less than 18%

per annum or more than the maximum rate allowed by law) from the due date

thereof, as an additional charge.

 

14.19       Holding Over

 

Any holding over by Tenant

after the expiration of the term of this Lease shall be treated as a daily tenancy

at sufferance at a rate equal to 1 1/2 times the Basic Rent plus Escalation

Charges and other charges herein provided (prorated on a daily basis) and shall

otherwise be on the terms and conditions set forth in this Lease as far as

applicable.

 

14.20       Waiver of

Subrogation

 

Insofar as, and to the

extent that, the following provision may be effective without invalidating or

making it impossible to secure insurance coverage obtainable from responsible

insurance companies doing business in the locality in which the Property is

located (even though extra premium may result therefrom) Landlord and Tenant

mutually agree that, with respect to any hazard, the loss from which is covered

by insurance then being carried by them, respectively, the one carrying such

insurance and suffering such loss releases the other of and from any and all

claims with respect to such loss to the extent of the insurance proceeds paid

with respect thereto; and they further mutually agree that their respective

insurance companies shall have no right of subrogation against the other on

account thereof.

 

14.21       Surrender of

Premises

 

Upon the expiration or

earlier termination of the Term of this Lease, Tenant shall peaceably quit and

surrender to Landlord the Premises in neat and clean condition and in good

order, condition and repair, together with all alterations, additions and

improvements which may have been made or installed in, on or to the Premises

before or during the Term of this Lease, excepting only ordinary wear and use

and damage by fire or other casualty for which, under other provisions of this

Lease, Tenant has no responsibility of repair or restoration.  Tenant shall remove all of Tenant’s

Removable Property and (i) to the extent specified by Landlord pursuant to

Paragraph 5.2, all Improvements made by Tenant and (ii) with respect to

improvements made by Tenant not requiring Landlord’s consent; and Tenant shall

repair any damages to the Premises or the

 

35

 

Building caused by such

removal.  Notwithstanding anything in

this Lease to the contrary, Tenant shall have no obligation to remove Building

Standard Office Improvements from the Premises.  Any of Tenant’s Removable Property which shall remain in the

Building or on the Premises after the expiration or termination of the Term of

this Lease shall be deemed conclusively to have been abandoned, and either may

be retained by Landlord as its property or may disposed of in such manner as

Landlord may see fit, at Tenant’s sole cost and expense.

 

14.22       Brokerage

 

Tenant warrants and

represents that Tenant has dealt with no broker except Peter Elliot LLC in

connection with the consummation of this Lease and, in the event of any other

brokerage claims against Landlord predicated upon a broker’s dealings with

Tenant in connection with this Lease, Tenant agrees to defend the same and

indemnify Landlord against any such claim. 

Landlord shall pay the commission of Peter Elliot LLC a in accordance

with the separate written agreement between Landlord and Peter Elliot LLC.

 

14.23       Environmental

Compliance

 

Tenant shall not cause any

hazardous or toxic wastes, hazardous or toxic substances or hazardous or toxic

materials (collectively, “Hazardous Materials”) to be used, generated, stored

or disposed of on, under or about, or transported to or from, the Premises

(collectively, “Hazardous Materials Activities”) without first receiving

Landlord’s written consent, which may be withheld for any reason and revoked at

any time.  If Landlord consents to any

such Hazardous Materials Activities, Tenant shall conduct them in strict

compliance (at Tenant’s expense) with all applicable Regulations, as

hereinafter defined, and using all necessary and appropriate precautions.  Landlord shall not be liable to Tenant for

any Hazardous Materials Activities by Tenant, Tenant’s employees, agents,

contractors, licensees or invitees, whether or not consented to by Landlord.

Tenant shall indemnify, defend with counsel acceptable to Landlord and hold

Landlord harmless from and against any claims, damages, costs and liabilities,

arising out of Tenant’s Hazardous Materials Activities.  For purposes hereof, Hazardous Materials

shall include but not be limited to substances defined as “hazardous

substances,” “toxic substances,” or “hazardous wastes” in the federal

Comprehensive Environmental Response, Compensation and Liability Act of 1980,

as amended; the federal Hazardous Materials Transportation Act, as amended; and

the federal Resource Conservation and Recovery Act, as amended (“RCRA”); those

substances defined as “hazardous wastes” in the Massachusetts Hazardous Waste

Facility Siting Act, as amended (Massachusetts General Laws Chapter 21D); those

substances defined as “hazardous materials”, or “oil” in Massachusetts General

Laws Chapter 21E, as amended; and as such substances are defined in any

regulations adopted and publications promulgated pursuant to said laws

(collectively, “Regulations”).  Before

using, storing or maintaining any Hazardous Materials on or about the Premises,

Tenant shall provide Landlord with a list of the types and quantities thereof,

and shall update such list as necessary for continued accuracy.  Tenant shall also provide Landlord with a

copy of any Hazardous Materials inventory statement required by any applicable

Regulations, and any update filed in accordance with any applicable

Regulations.  If Tenant’s activities

violate or create a risk of violation

 

36

 

of any Regulations, Tenant

shall cease such activities immediately upon notice from Landlord.  Tenant shall immediately notify Landlord

both by telephone and in writing of any spill or unauthorized discharge of

Hazardous Materials or of any condition constituting an imminent hazard under

any Regulations.  Landlord, Landlord’s

representatives and employees may enter the Premises at any time during the

Term to inspect Tenant’s compliance herewith, and may disclose any violation of

any Regulations to any governmental agency with jurisdiction.  Nothing herein shall prohibit Tenant from

using minimal quantities of cleaning fluid and office supplies which may

constitute Hazardous Materials but which are customarily present in premises

devoted to office use, provided that such use is in compliance with all applicable

laws and subject to all of the other provisions of this Section 14.23.

 

14.24       Exhibits

 

Exhibits A, B, C, D, E, F

and G attached hereto are hereby incorporated by reference as fully as if set

forth herein in full.

 

14.25       Governing

Law

 

This Lease shall be governed

exclusively by the provisions hereof and by the Laws of the Commonwealth of

Massachusetts, as the same may from time to time exist.

 

14.26       Evidence

of Authority.

 

Landlord and Tenant each

represent and warrant to the other party that it has all legal power and

authority to execute this Lease; and to perform its respective obligations

hereunder.

 

ARTICLE

XV

DETERMINATION OF FAIR MARKET RENT AND

TENANT OPTIONS TO EXTEND

 

15.1         Fair

Market Rent.

 

Whenever any provision of

this Lease provides that the Fair Market Rent shall be calculated, it shall

mean that the fair rent for the Premises as of the commencement of the period

in question under market conditions then existing shall be determined.  Fair Market Rent shall be determined by

agreement between Landlord and Tenant, but if Landlord and Tenant are unable to

agree upon the Fair Market rent within twenty (20) days after the date on which

Tenant delivers notice of its exercise of its option to extend under Section

15.2 below, then the Fair Market Rent shall be determined by appraisal made as

hereinafter provided by a board of three (3) reputable independent commercial

real estate appraisers or brokers, each of whom shall have at least ten years

of experience in the eastern Massachusetts rental market for comparable

properties and each of whom is hereinafter referred to as “appraiser”.  Tenant and Landlord shall each appoint one

such appraiser and the two appraisers so appointed shall appoint the third appraiser.  The cost and expenses of each appraiser

appointed separately by Tenant and Landlord shall be borne by the party who

appointed the appraiser.  The cost and

expenses of the third appraiser shall be shared equally by Tenant and Landlord.  Landlord and Tenant shall

 

37

 

appoint their respective

appraisers within fifteen (15) days after the expiration of such twenty (20)

day period, and shall designate the appraisers so appointed by notice to the

other party.  The two appraisers so appointed

and designated shall appoint the third appraiser within fifteen (15) days after

their appointment, and shall designate such appraiser by notice to Landlord and

Tenant.  The board of three appraisers

shall determine the Fair Market Rent of the space in question as of the

commencement of the period to which the Fair Market Rent shall apply and shall

notify Landlord and Tenant of their determinations within thirty (30) days of

their appointment.  If the

determinations of the Fair Market Rent of any two or all three of the

appraisers shall be identical in amount, said amount shall be deemed to be the

Fair Market Rent of the Premises.  If

the determinations of all three appraisers shall be different in amount, the

average of the two values nearest in amount shall be deemed the Fair Market

Rent.  Notwithstanding the foregoing, if

either party shall fail to appoint its appraiser within the period specified

above (such party referred to hereinafter as the “failing party”), the other

party may serve notice on the failing party requiring the failing party to

appoint its appraiser within five (5) days of the giving of such notice and if

the failing party shall not respond by appointment of its appraiser within said

five (5) day period, then the appraiser appointed by the other party shall be

the sole appraiser hereunder.  Tenant

shall have the option, exercisable by written notice to Landlord within ten

(10) days after determination of Fair Market Rent hereunder, to rescind its

exercise of its option to extend under Section 15.2 below, in which event this

Lease shall expire at the end of the then current Term.  If Tenant does not timely deliver such

notice of rescission, the determination of Fair Market Rent by the appraisers

hereunder shall be final and binding upon the parties.

 

15.2         Options

to Extend

 

Tenant shall have the right

and option to extend the Term for two (2) additional periods (each, an

“Extension Term”), in the case of the first Extension Term, commencing the day

after the expiration of the Initial Term, and ending on the fifth anniversary

of the expiration of the Initial Term, and in the case of the second Extension

Term, commencing the day after the expiration of the first Extension Term and

ending on the fifth anniversary of the expiration of the first Extension Term,

provided that Tenant shall give Landlord notice of Tenant’s exercise of each

such option no more than eighteen (18) months and no less than fifteen (15)

months prior to the expiration of the then current Term, and provided further

that Tenant shall not be in default at the time of giving such notice or  at the commencement of the Extension Term in

the performance or observance of any of the terms and provisions of this Lease

on the part of the Tenant to be performed or observed.  Landlord shall deliver to Tenant at least

thirty (30) days and no more than sixty (60) days a reminder notice of its

right to extend the Term hereunder, provided that any delay in delivery of such

notice after the sixteenth (16th) month prior to the expiration of the then current

term shall result in a corresponding delay in all dates under this Article

XV.  Prior to the exercise by Tenant of

the first such option, the expression “Term” shall mean the Initial Term, and

after the exercise by Tenant of the subsequent option, the expression “Term”

shall mean the Term as it has been then extended.  All of the terms, covenants, conditions, provisions and

agreements in this Lease contained shall be applicable to the then Extended

Term, except as hereinafter set forth. 

If Tenant shall give notice of its exercise of this option to extend in

the manner and

 

38

 

within the time period

provided aforesaid, the Term shall be extended upon the giving of such notice

without the requirement of any further action on the part of either Landlord or

Tenant.  If Tenant shall fail to give

timely notice of the exercise of any such option as aforesaid, Tenant shall

have no right to extend the Term of this Lease, time being of the essence of

the foregoing provisions.  It is a

condition of the exercise of the second Extension Term that Tenant shall have

exercised its option for the first Extension Term.  The Annual Basic Rent Rate payable during each Extension Term

shall be the greater of (a) the Annual Basic Rent Rate for the last year of the

Initial Term, in the case of the first Extension Term, and for the last year of

the first Extension Term, in the case of the second Extension Term, or (b) the

Fair Market Rent determined in accordance with Section 15.1 above, increased in

the case of either (a) or (b) by Fair Market Rent step increases as determined

in accordance with Section 15.1 above, on each anniversary of the extension of

the Term.

 

ARTICLE

XVI

RIGHT OF EXPANSION

 

Provided

that Tenant shall not be in default in the performance or observance of any of

the terms and provisions of this Lease on the part of the Tenant to be

performed or observed, Tenant shall have a right of first offer to expand into

the remaining space on the first floor of the Building on the same terms and

conditions as the Premises demised hereunder on the terms set forth herein,

provided that (a) if such right is exercised within six (6) months after the

Commencement Date, the Annual Basic Rent for such space shall be the rate set

forth in Section 1.2 above, and Landlord shall provide to Tenant the same scope

of Landlord’s Work as is provided for the Premises under Article IV above, and

(b) if such right is exercised thereafter, the Annual Basic Rent for such space

shall be the Fair Market Rent determined in accordance with Section 15.1 above,

and Landlord shall only be obligated to provide Landlord’s Work to the extent

determined to be the market standard therefor, as determined in accordance with

Section 15.1 above.  Landlord shall

provide written notice of the availability of the space to Tenant.  If Tenant fails to accept Landlord’s offer

on the terms set forth therein within fifteen (15) business days from delivery

of Landlord’s notice, Tenant shall have no further rights hereunder, time being

of the essence of the foregoing provisions. 

This right of first offer is intended to be outstanding until the first

floor space has been leased, whether to Tenant or a third party, after which

this Article XVI shall have no further force or effect.  In the event that Tenant provides timely

written acceptance of Landlord’s offer, the parties shall enter into an

amendment to this Lease which incorporates the offered space into the Premises

on the terms set forth herein.

 

ARTICLE

XVII

LEASING RESTRICTION

 

Landlord hereby agrees with

Tenant that Landlord shall not enter into a lease of (a) more than 1,000 square

feet of space in the Building with a residential mortgage company, or (b) more

than 5,000 square feet of space in the Building with another bank, without the

express written consent of Abington Savings Bank, provided that this

restriction shall expire and have no further force or effect during the last

twelve (12) months of the Term (unless Tenant shall have

 

39

 

exercised any then existing options to extend

the Term pursuant to Article XV, in which event this restriction shall remain

in effect until the last twelve (12) months of the Term as so extended).

 

[Signatures

on Next Page]

 

40

 

IN WITNESS WHEREOF, Landlord and

Tenant have caused this Lease to be duly executed, under seal, by persons

hereunto duly authorized, in multiple copies, each to be considered an original

hereof, as of the date first set forth above.

 

	

  LANDLORD:

  	

   

  	

  TENANT:

  	

   

  
	

  LIBBEY PARK LLC

  	

   

  	

  ABINGTON SAVINGS BANK

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  By:

  	

  CAMPANELLI WEYMOUTH  ILLC

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  By:

  	

  Campanelli Associates II Limited

  Partnership, its member

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  By:

  	

  Campanelli Associates II Corporation,

  general partner

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  By:

  	

  /s/ Daniel R DeMarco

  	

   

  	

  By:

  	

  /s/ Kevin M. Tierney

  	

   

  
	

   

  	

  Name:  Daniel R. DeMarco

  	

   

  	

   

  	

  Name:  Kevin M. Tierney

  	

   

  
	

   

  	

  Title: President

  	

   

  	

   

  	

  Title: Executive VP &

  Chief Operating Officer

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
							

 

41

 

EXHIBITS

 

	

  Exhibit A:

  	

   

  	

  The

  Land and Title Encumbrances

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  Exhibit A-1:

  	

   

  	

  Location of Reserved

  Parking Spaces

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  Exhibit A-2:

  	

   

  	

  Locations and Dimensions

  of Signage

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  Exhibit A-3:

  	

   

  	

  Location of Rooftop

  Equipment

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  Exhibit B:

  	

   

  	

  Floor Plan

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  Exhibit C:

  	

   

  	

  Landlord’s Work

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  Exhibit D:

  	

   

  	

  Schedule

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  Exhibit E:

  	

   

  	

  Cleaning Specifications

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  Exhibit F:

  	

   

  	

  Items Included in

  Operating Expenses

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  Exhibit G:

  	

   

  	

  Rules and Regulations

  	

   

  

 

42

 

EXHIBIT “C”

03/25/2002

 

Landlord’s Work

 

FOR

 

[LOGO] ABINGTON SAVINGS BANK

 

In

 

100,000 SF

Weymouth Woods Office Building

 

AT

 

Libby Industrial Parkway

Weymouth, MA

 

Campanelli

Companies

 

 

TABLE OF CONTENTS

 

PART I

 

	

  1.1

  	

   

  	

  General

  	

   

  
	

  1.2

  	

   

  	

  Site

  	

   

  
	

  1.3

  	

   

  	

  Structure

  	

   

  
	

  1.4

  	

   

  	

  Roof

  System

  	

   

  
	

  1.5

  	

   

  	

  Interior Finish

  	

   

  
	

  1.6

  	

   

  	

  Doors and Hardware

  	

   

  
	

  1.7

  	

   

  	

  Fire Protection

  	

   

  
	

  1.8

  	

   

  	

  Plumbing Systems

  	

   

  
	

  1.9

  	

   

  	

  Heating, Ventilating

  and Air Conditioning

  	

   

  
	

  1.10

  	

   

  	

  Electrical

  	

   

  
	

  1.11

  	

   

  	

  Elevators

  	

   

  
	

  1.12

  	

   

  	

  Guarantees

  	

   

  

 

PART II

 

	

  2.1

  	

   

  	

  Tenant’s Build Out (Landlord’s Work)

  	

   

  

 

2

 

1.1 GENERAL

 

A.                                   The office

building shall have 100,000 square feet of gross floor area.  There shall be four (4) floors as indicated

in the floor plans “FP1”, “FP2”, “FP3” and “FP4”. The Abington Savings space

consists of a total of 34,640 rentable square feet as follows;

 

	

  1st

  Floor

  	

   

  	

  9,565 r.s.f

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  4th

  Floor

  	

   

  	

  25,075 r.s.f

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  Total

  	

   

  	

  34,640 r.s.f

  	

   

  

 

B.                                     The site layout

shall be in accordance with the attached Exhibit “A-1”, including 4 reserved

parking spaces at the front of the building marked “Abington Savings Bank

Reserved”.

 

C.                                     All engineering

design and inspection work involved in this project shall be done

by competent, registered

architects and engineers selected by Campanelli.

 

D.                                    All

construction shall be in accordance with state and local codes and recognized

standards which apply to the type of work involved in this project.

 

E.                                      All labor in

connection with this work shall be open shop done by skilled craftsmen normally

employed by the various construction trades. 

All materials specified are to be new and are intended to set a quality

standard.

 

1.2  SITE

 

A.                                   Sanitary sewer

and storm sewer shall be properly designed and constructed to adequately

service the building and the site.

 

B.                                     Domestic and

fire protection water shall be adequately sized and connected directly to the

existing town water main in Libby Industrial Parkway, in accordance with state

and local codes.

 

C.                                     Gas and

electric, telephone and fire alarm utilities of proper size shall be brought to

the building and distributed by the Landlord. 

Services shall be sized to accommodate typical office use requirements.

 

1.3 STRUCTURE

 

A.            Foundation,

walls and footings shall be reinforced concrete.

 

B.                                     Floor slabs

shall be concrete and designed for live loads as follows: First floor/ground

floor - 150 P.S.F.; upper floors 100 P.S.F. 

Additional floor load capacity if required for Tenant’s use and or

equipment shall be by Tenant.

 

3

 

C.                                     Structural

frame shall be of composite construction consisting of steel columns, beams,

joists, and or purlins.  Floor to floor

height shall be 15’-4” from ground floor 15’-4” to second floor and 14’-8”‘ at

all others.

 

D.                                    Exterior skin

shall be constructed to provide a thermal insulation barrier in accordance with

the Commonwealth of Massachusetts Energy Code. 

All aluminum shall be of a thermal break design. All glass shall be 1”

insulating type and shall incorporate solar tinting or structural solar

shading.

 

1.4 ROOF SYSTEM

 

A.            The

roof shall be insulated per the Massachusetts Building Code.  Roofing type to

be fully adhered single ply

Carlisle EPDM rubber membrane or equal.

 

1.5 INTERIOR FINISH

 

A.            INTERIOR

WALL SURFACES:

 

All corridor and rated walls

(except areas which may be exposed masonry) shall    be drywall on 3 5/8” metal studs at 16” on center, taped and

sanded, ready to receive finish treatment. 

All other partitions shall be 1/2” drywall on 3-1/2” metal studs at 16”

O.C., taped and sanded to receive finish treatment.  All corners to receive corner beads.  The common corridor wall shall extended to the slab above and be

insulated with sound attenuating blankets.

 

1.                                       All walls are

to receive a prime and finish coats as required for complete coverage.  Paint colors in leased areas as selected by

Tenant.

 

2.                                       Interior

columns are to be boxed in and finished as per wall specifications.

 

3.                                       Toilet areas

shall receive full height ceramic tile on all walls, with acoustic board

ceilings, steel toilet partitions with baked enamel finish.

 

B.            INTERIOR

FLOOR SURFACES:

 

1.                                       Toilet areas

shall receive ceramic tile with marble threshold.

'   

2.                                       Lobby floor to

be tile, color and style to be selected by Landlord’s architect.

 

3.                                       All other

common areas and corridors to have carpet, color and style to be selected by

Landlord’s architect.

 

4.                                       Service

corridors to be VCT.

 

5.                                       Service dock

and equipment rooms to be exposed concrete.

 

4

 

C.            CEILINGS:

 

Ceilings in lobby and

corridor areas to be 2’x2’x 3/4” Armstrong Cortega textured acoustic lay-in

tile, Armstrong Second Look II or equal, in an exposed inverted T suspension

system.  Clear height to finished

ceiling shall be 9’ minimum unless otherwise specified. 

 

D.            SPECIAL

INTERIOR FEATURES:

 

1.                                       Selected

interior partitions shall receive fiberglass batt sound insulation as follows:

 

a.                                       Core area walls

including restrooms, mechanical rooms, and demising walls.

 

1.6 DOORS AND HARDWARE

 

A.                                   All common

corridor doors shall be solid core, oak veneer, stained and finished with clear

polyurethane. The frames for these doors shall be painted metal. Interior doors

shall be similar 3’ -0” x 7’ -0” x 1-3/4” doors in metal frames.

 

1.                                       All doors shall

be rated as required by code.

 

2.                                       All hardware

will be commercial duty, Best Brand or equal to receive Best Brand cores.  Installation to include construction

cores.  Keying of within tenant spaces

is by Tenant.

 

3.                                       All common

corridor doors shall receive one and one-half pair of heavy- duty hinges,

closer and lever-type handles.  General

office doors to receive one and half pair of butts and medium duty cylindrical

lever type latch sets.

 

4.                                       All doors shall

receive stops and checks are required.

 

1.7 FIRE PROTECTION

 

A.                                   Fire sprinkler

system shall be wet-type covering the entire building in accordance with

requirements of local codes and local fire department.  Sprinkler heads in common areas shall be

drop down type with flat cover matching ceiling color all others; chrome

pendant with chrome escutcheons.

 

B.                                     Fire alarm pull

stations, horns, smoke detectors, and hose stations shall be installed in

accordance with the requirements of local codes as approved by the local

governing fire department.

 

C.                                     Central alarm

supervision for fire protection shall be brought to an annunciator panel as

required by code.

 

5

 

1.8 PLUMBING SYSTEMS

 

A.                                   Common toilet

areas complying with ADA requirements shall be provided for both sexes on each

floor.

 

B.                                     One (1)

electric water coolers will be provided at each floor, located to be accessible

by all Tenants.

 

C.                                     Toilets shall

have flushometer type fixtures, wall hung. 

Hot and cold water supply shall be provided to all lavatories and

janitor sinks.  There shall be one (1)

janitor’s closet and janitors sink per floor.

 

D.                                    Provide wall

cleanouts for toilet headers on every floor.

 

E.                                      Hot water will

be supplied from janitors room on each floor with electric water heaters.

 

1.9 HEATING,

VENTILATING AND AIR CONDITIONING

 

A.            Design

conditions shall be in accordance with the Massachusetts Energy Code as

follows:

 

1.                                       Winter -

Heating shall be designed to produce an inside temperature of 72 degrees F.,

coincident with an outside temperature of 6 degrees F.

 

2.                                       Summer -

Cooling shall be designed to produce an inside temperature of 72 degrees F.,

dry bulb, maximum 65 degrees F. wet bulb, coincident with an outside

temperature of 87 degrees F. and 50% relative humidity, dry bulb and 74 degrees

F. wet bulb.

 

3.                                       Fresh air shall

be provided in accordance with state code.

 

B.            General

 

1.                                       The facility

will be designed in accordance with applicable National, State and local

codes.  These codes include, but are not

limited to, BOCA Building Code, NFPA Standards and ASHRAE Guides. 

 

2.                                       The spaces

within the building will be mechanically heated, cooled and ventilated, where

required, in accordance with the above codes and good practice.

 

3.                                       In general,

conditioned air and heating by VAV rooftop DX evaporative condensing air

handling units.  The units will be

located on the roof directly over duct shafts. Heating will be by gas fired hot

water located in the Mechanical Room.

 

6

 

C.            Air

Handling Units

 

1.                                       The building

will be provided with multiple VAV rooftop DX evaporative condensing air

handling units.

 

2.                                       Each unit will

include return fan, pre-filters, supply fan, cooling coil, gas fired heating

section, down discharge section an evaporative condenser section.  Units will be double wall construction with

no exposed insulating materials.

 

3.                                       Each unit’s

supply and return fan shall be capable of delivering variable air volume by

means of variable frequency drives.

 

4.                                       The units will

be located on the roof directly over duct shafts. Each unit shall have 12” high

roof curbs.

 

5.                                       All air

handling units will have outside air economizer capability.

 

6.                                       Air serving the

following areas will be exhausted to the outdoors via separate exhaust fans:

Toilet Rooms, Mechanical Room, Electric Rooms and Janitors closets. Any special

exhaust system required for tenant equipment or systems shall be by the tenant.

 

D.            Supply

and Return Air Distribution System

 

1.                                       All supply air

will be distributed through medium pressure to fan powered air terminal devices

and ductwork air diffusers. Ductwork will be distributed to serve all occupied

spaces.  Supply air ductwork will be

thermally insulated.  Ductwork will be

acoustically lined downstream of all terminal units and within 20 feet upstream

and downstream of all fans, including plenums.

 

2.                                       Each floor

shall be provided with a supply air ring duct. 

Return air will be via return air plenum.

 

3.                                       All areas shall

be provided with constant volume, pressure independent fan powered terminal

boxes with hot water heating coils.

 

E.             Hot

Water System

 

1.                                       To handle the

heating load, gas fired hot water boilers sized at 67% of total load each, will

be provided. Hot water will be piped to reheat coils in fan powered terminals.

 

2.                                       The system will

include the boilers, two circulation pumps, distribution piping, reheat coils,

valves and accessories, expansion tank, controls and flue stacks.

 

7

 

3.                                       Combustion air

ventilation will be provided for the boiler room via wall louvers.

 

4.                                       The boilers

will be located in the Mechanical Room.

 

F.                                      Automatic Temperature

Controls

 

1.                                       Building will

be provided with a new computer based automatic temperature control system

(DDC) that will control multiple functions/systems to maintain proper

environmental conditioners at all times.

 

2.                                       The rooftop air

handling units will be provided with controls to discharge air temperature,

modulate supply, return and outside air volume, control and optimization of

energy management as appropriate.

 

3.                                       Zones will be

controlled to specified temperature through local zone sensors.

 

4.                                       Exhaust fans

will be interlocked to run with associated supply air handling unit.

 

G.                                     Sound &

Vibration Control

 

1.                                       All mechanical

equipment, ductwork and piping shall be seismically restrained per BOCA.

 

2.                                       Pumps will be

mounted on inertial blocks and spring isolators.

 

3.                                       Air

distribution systems will be provided with central acoustical silencers on all

supply main ducts and return section of roof curbs.

 

4.                                       Other equipment

will be treated as required to maintain required level of noise and vibration.

 

H.                                    Specialty

Spaces/Systems

 

1.                                       All other

entryways will have hot water floor mounted cabinet unit heaters.

 

2.                                       Mechanical Room

will have ceiling mounted horizontal hot water unit heaters.

 

3.                                       Any specialty

cooling required for tenant equipment, Computer Room, Tel Com Rooms shall be

separate split system air conditioning systems shall be by the tenant at

locations approved by the Landlord.

 

8

 

1.10  ELECTRICAL

 

A.                                   General

illumination in corridors, lobbies and common areas will be provided through 2

‘ x 4 ‘ , three lamp recessed fluorescent troffers with parabolic reflectors

with T-8 lamps and electronic ballasts. 

Accent and wall wash lighting will be provided in Lobbies, and waiting

areas.

 

C.                                     120/208V and (1)

480/277V power panels connected to Building power shall be provided, sufficient

to provided ten (10) watts of power per square foot of floor area for tenant

use beyond lighting and HVAC requirements.

 

D.                                    Telephone

System:  Tenant will supply and install all

telephone wiring.  Landlord will provide

conduit to suitable central telephone closet location on each floor.  All telephone wiring shall be run above

corridor ceilings only within dedicated spaces allocated by the Landlord.

 

E.                                      Security

System: a card key access system shall be installed to control general building

access only.

 

F.                                      Emergency Power

Generator:

 

1.                                  The emergency

power generator shall be sized to accommodate building life safety

requirements.

 

2.                                  Additional

emergency/backup power shall be by tenant.

 

1.11  ELEVATORS

 

A.                                   Vertical

passenger transportation will be provided by means of two (2) hydraulic

passenger elevators at 3,000 pounds capacity each.  Stops at each floor.

 

1.                                  Speed 150 feet

per minute minimum, in accordance with industry standard.

 

2.                                  Cab standard

package.

 

B.                                     Vertical

service transportation will be provided by means of (1) 4,500 lb. 125 feet per

minute hydraulic passenger/service elevator shall be provided with stops at

each floor.

 

1.12  GUARANTEES

 

A.                                   The Landlord

guarantees against all defects in materials and workmanship for a period of

twenty four (24) months from the date of initial occupancy.

 

9

 

PART II

 

2.1  TENANT FITUP

 

A.                          GENERAL

 

Landlord

shall approve the construction documentation and the construction of Tenant

Improvements (“Landlord’s Work”) in accordance with mutually approved

preliminary space plans as provided by Tenant, prepared by DRL Assoc. Inc.,

dated 3/09/2002.  These preliminary

space plans are basic in nature and are intended only to give guidance to

Landlord’s architect/engineer in preparing full permit/construction

documentation and plans.

 

General

Contractor:  The general contractor

shall be Campanelli Associates Construction Corporation.

 

The

Landlord, its general contractor and the subcontractors agree to furnish all

the material and perform all work necessary to complete the construction and

execution of Landlord’s Work to the Premises and to render Premises acceptable

for occupancy by the Tenant and to furnish all architectural, engineering and

contracting services, structures, equipment, working/permit drawings, labor,

materials, taxes and other facilities and to do all other things necessary,

proper or incidental thereto, all in strict accordance with Landlord’s Work and

any future changes thereto.

 

Landlord

agrees to execute all Landlord’s Work in compliance with all applicable

building, zoning, fire department, utility company(s) and telephone company

rules/regulations, requirement or ordinances and provide when required all

materials, labor, permits, inspections, approvals and the like, for all work,

including but not limited to: structural, electrical, plumbing, sprinklers,

heating, ventilating, air conditioning, security, ingress and egress.

 

Tenant

shall approve all working drawings and finishes prior to commencement of

construction.  Tenant shall appoint an

individual as Tenant’s Representative to make decisions or changes to the plan.  The general contractor shall submit shop

drawings and data sheets for all fabricated items and equipment, and samples of

all finishes to Tenant’s Representative for approval prior to

installation.  No extra work, change,

amendment, revision or other directive shall be made unless so ordered and

authorized in writing by the Tenant’s Representative.

 

Landlord

to provide Tenant with copies of “Certificate of Occupancy” or “Temporary

Certificate of Occupancy”.

 

10

 

B.            OFFICE

AREAS

 

Tenant improvements shall be

constructed generally as shown on the preliminary space plans as referenced in

section A above, and as more specifically described below.

 

1.                                       Drywall

partitions shall be provided per the preliminary space plans.  Partition height shall be 10’ , unless

otherwise noted.

 

Partitions

shall be steel studs with 5/8” gypsum drywall each side taped and painted.

 

a.                                       Wallboard shall

comply with Federal Specifications SS-L-30d and furnished in 48 inch widths and

in such lengths as will result in a minimum number of joints.

 

b.                                      Steel studs and

tracks shall be channel type, zinc coated.

 

c.                                       Walls of

offices abutting mechanical rooms, toilets, elevators, lobbies, copy rooms,

vending rooms and demising partitions shall be full height to the ceiling deck

and shall receive fiberglass batt sound insulation.

 

2.                                       Interior glass

and glazing allowance shall include a total of 150 sq. ft. of interior

glass/sidelights.

 

3.                                       Ceilings shall

be 24” x 48” x 3/4” on suspended metal grid at 9’ height, Armstrong Second Look

Tile II or equal.

 

a.                                       Acoustical

materials shall be installed in accordance with procedure endorsed by

Acoustical and Insulating Materials Association.  Suspension shall be installed in accordance with ASTM C636.

 

b.                                      A total of 5%

of the gross ceiling area shall be drywall soffit construction.

 

4.                                       Flooring

(except as otherwise specified) shall be provided as follows:

 

a.                                       Office areas,

with a carpet material allowance of $15.00/SY

 

b.                                      Lunch room and

coffee station floors (590 SF) shall be Vinyl Composition Tile (VCT).

 

c.                                       Lobby flooring

allowance is carried at $15.00 per sq. ft. over 480 sq. ft.

 

11

 

5.                                       Interior

passage doors exclusive of core area doors, shall be provided the preliminary

space plans.

 

Interior passage doors,

shall be 1-3/4” solid core, oak veneer, stained and finished with clear

polyurethane, in metal frames.

 

a.                                       All hardware

will be commercial duty, Best Brand or equal to receive Best Brand cores.  Installation to include construction

cores.  Keying of within tenant spaces

is by Tenant.

 

6.                                       Glass entrance

doors shall be provided at the following locations:

 

a.                                       Single door at

first floor branch bank.

 

b.                                      Double door at

the first floor bank office area.

 

c.                                       Double door at

the forth floor board room entrance.

 

7.                                       Painting and

wall coverings; all interior partitions, door frames and trim shall be painted

a primer and 2 finish coats.  An

allowance for wall coverings beyond paint has been included at the rate of

$0.10/rentable sq. ft.

 

8.                                       Electrical;

Building power shall be provided to the tenant space, sufficient to provided

ten (10) watts of power per square foot of floor area for tenant use beyond

lighting and HVAC requirements.

 

a.                                       General

illumination will be provided through 2 ' x 4 ' , three lamp recessed

fluorescent troffers with parabolic reflectors with T-8 lamps and electronic

ballasts, so as to provide a lighting level of 70 foot candles measured at desk

height.

 

b.                                      120 V. duplex

receptacles in the office area shall be provided in partitions at the rate 1

per each 15 linear feet of wall space in private offices and at the rate of one

outlet per 150 sf in open areas.

 

c.                                       Emergency

lighting shall be provided in accordance with state and local codes.

 

d.                                      A fire alarm

system shall be provided per state and local code requirements.

 

12

 

9.                                       HVAC controls

and final distribution shall be designed to accommodate the tenant space based

upon the above described partition density. 

See article IX for performance design specifications.

 

a.                                       Office areas

shall have a plenum type return air system.

 

b.                                      Any special

exhaust system required for tenant equipment or systems shall be by the tenant.

 

c.                                       Zones will be

controlled to specified temperature through local zone sensors.

 

d.                                      Any specialty

cooling required for tenant equipment, Computer Room, Tel Com Rooms shall be

separate split system air conditioning systems and shall be by the tenant at

locations approved by the Landlord.

 

10.                                 Plumbing shall

be provided for the kitchen area, including one (1) with sink, and Tenant

supplied dishwasher.

 

11.                                 Window blinds

shall be provided on all exterior windows as manufactured by Laserlite, model

V-3000, color #136 white.  Tenant may

select either solid or perforated slats.

 

12.                                 Floor load

capacity upgrades required by Tenant’s use and or equipment are excluded, and

if required shall be by Tenant.

 

C.            ALLOWANCES

 

The following allowances are

included in Landlord’s Work:

 

	

  1.

  	

   

  	

  Carpet

  Material allowance $15.00/ sq. yd.;

  	

   

  	

  $

  	

  46,800.00

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  2.

  	

   

  	

  Special

  wall treatments beyond paint @ $0.10/sq. ft. of rentable floor area;

  	

   

  	

  $

  	

  3,269.00

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  3.

  	

   

  	

  Interior glass and glazing

  (approx. 150 sq. ft.;)

  	

   

  	

  $

  	

  3,000.00

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  4.

  	

   

  	

  Lobby flooring allowance @

  $15.00 (480 sq. ft.)

  	

   

  	

  $

  	

  7,200.00

  	

   

  

 

13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}]]