Document:

Exhibit 10.24

 

 

 

SECOND AMENDED AND RESTATED
SUBLEASE AGREEMENT

Dated as of June 30, 1998

between

MARYLAND ECONOMIC
DEVELOPMENT CORPORATION

AND

OSIRIS THERAPEUTICS, INC.

 

 

 

 

SECOND
AMENDED AND RESTATED SUBLEASE AGREEMENT

THIS SECOND AMENDED AND RESTATED SUBLEASE
AGREEMENT (this “Sublease”) is made as of the 30th day of June, 1998, by and
between MARYLAND ECONOMIC DEVELOPMENT CORPORATION, a body politic and corporate
and constituted as a public instrumentality of the State of Maryland (“Sublandlord”)
and OSIRIS THERAPEUTICS, INC., a Delaware corporation (“Subtenant”).

RECITALS

A.            On January 18, 1995, SAGA Limited Partnership, a Maryland
limited partnership (the “Original Landlord”), and Sublandlord executed a Lease
Agreement (the “Lease Agreement”).  The
Lease Agreement was amended by letter agreements between Original Landlord and
Sublandlord, dated March 5, 1997 and April 6, 1998, and by that certain Third
Amendment of Lease, dated as of the date hereof, between ARE-2001 Aliceanna
Street, LLC (successor to Original Landlord) (“Landlord”) and Sublandlord.  The Lease Agreement, as so amended, is
hereinafter referred to as the “Master Lease”.

B.            Pursuant to the terms of the Master Lease (a copy of
which is attached hereto as Exhibit A and incorporated herein by reference)
Original Landlord leased to Sublandlord certain property in Baltimore City,
Maryland, all as more particularly described in the Master Lease (the “Premises”).

C.            On January 18, 1995, pursuant to the terms of a certain
Sublease Agreement, Sublandlord subleased a portion of the Premises to
Subtenant.  Such Sublease Agreement was
amended on June 2, 1995 pursuant to the First Amendment to Sublease Agreement.

D.            Pursuant to an Amended and Restated Sublease dated as of
June 30, 1998 (but effective as of September 1, 1997) (the “First Amended and
Restated Sublease Agreement”) between Sublandlord and Subtenant, the Sublease
Agreement was amended and restated.

E.             Subtenant and Sublandlord now desire to amend and
restate the First Amended and Restated Sublease Agreement, defining their
respective rights, duties, obligations and liabilities.

F.             Subtenant desires to sublease all of the Premises from
Sublandlord (the “Subleased Premises”) and Sublandlord desires to sublease the
Subleased Premises to Subtenant.  The
Subleased Premises shall consist of l18,159 rentable square feet within the
Building (as hereinafter defined), which is the space leased by Sublandlord
under the Master Lease, consisting of 28,878 square feet outlined in Exhibit
A-1 attached hereto, 80,097 square feet outlined in Exhibit A-2
attached hereto and 9,184 square feet outlined in Exhibit A-3 attached
hereto.  As used in this Sublease, the
term “Building” shall mean the building known as 2001 Aliceanna Street,
Baltimore, Maryland 21231-2001.

NOW, THEREFORE, WITNESSETH, that in
consideration of the mutual promises and covenants contained herein, and other
good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, Sublandlord and Subtenant hereby covenant and agree as
follows:

 

 

1.             Demise.  Sublandlord hereby sublets to Subtenant and
Subtenant hereby sublets from Sublandlord the Subleased Premises and the
Parking Spaces (as defined in the Master Lease).  Except as otherwise provided herein, Subtenant
hereby assumes and agrees to perform all of the duties and obligations imposed
in respect of the Subleased Premises upon Sublandlord, as tenant, by the Master
Lease for the term of this Sublease, and it is agreed that Sublandlord shall
have all the rights and powers as Sublandlord hereunder as are conferred upon
the Landlord in the Master Lease.

2.             Term.  The
term of this Sublease shall commence on the Effective Date (as hereinafter
defined) and shall expire on the next to last day of the month during which the
tenth (10th) anniversary of the Effective Date occurs (the “Initial Term”).  The Effective Date shall mean the date of the
closing of the purchase of the Building by Landlord from Original Landlord.  If the Effective Date does not occur by
October 31, 1998, this instrument shall be null and void ab  initio.

By written notice to Sublandlord not less
than one year prior to the expiration of the Initial Term, Subtenant may extend
the Initial Term for a period of five (5) years (the “Extended Term”) on the
same terms and conditions which apply to the Initial Term and Sublandlord shall
then exercise the necessary and corresponding extension option under the Master
Lease, provided that Subtenant is not then in default of any material term,
covenant or condition of this Sublease (or if so, such default is cured prior
to the expiration of any applicable grace period).  Notwithstanding the foregoing to the contrary,
provided that (i) Sublandlord is not in default of any of its obligations under
the Master Lease or this Sublease, (ii) Landlord is not in default of any of
its obligations under the Master Lease, and (iii) indebtedness incurred in
connection with certain bond financing for the funding of certain components of
certain improvements made to the Building by Sublandlord will be outstanding on
the date on which the Extended Term would commence, Subtenant shall exercise
its option to extend the term of this Sublease for the Extended Term.  If Subtenant does not exercise its option to
extend the term of this Sublease for the Extended Term, Subtenant shall pay to
Sublandlord the outstanding principal balance of and all accrued interest on
the loan indebtedness incurred by Sublandlord in the original principal amount
of $50,000 in connection with a Maryland Industrial & Commercial
Redevelopment Fund loan to Sublandlord to finance the funding of certain
components of certain improvements made to the Building by Sublandlord (the “MICRF
Loan”).

Provided that Subtenant has exercised its
option to extend the term for the Extended Term, and provided further that
Sublandlord exercises the necessary and corresponding extension option under
the Master Lease and Subtenant is not then in default of any material term,
covenant or condition of this Sublease (or if so, such default is cured prior
to the expiration of

 

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any applicable grace
period), Subtenant may, by written notice to Sublandlord (the “First Extension
Notice”) not less than one year prior to the expiration of the Extended Term
extend the Extended Term for a period of five (5) years (the “First Option Term”)
on the same terms and conditions which apply to the Extended Term.

Provided that Subtenant has exercised its
option to extend the term for the First Option Term, and provided further that
Sublandlord exercises the necessary and corresponding extension option under
the Master Lease and Subtenant is not in default of any material term, covenant
or condition of this Sublease (or if so, such default is cured prior to the expiration
of any applicable grace period), Subtenant may, by written notice to Sublandord
(the “Second Extension Notice”) not less than one year prior to the expiration
of the First Option Term extend the First Option Term for a period of five (5)
years (the “Second Option Term”) on the same terms and conditions which apply
to the First Option Term.

Notwithstanding anything to the contrary
contained in this Sublease, Sublandlord hereby expressly covenants and agrees
that it shall, so long as it is entitled to do so under the terms of the Master
Lease, exercise each extension or renewal option to which it is entitled under
the Master Lease (at the time and in the manner provided for in the Master
Lease) which may be necessary or appropriate to permit Subtenant to exercise
each option or extension term to which it is entitled under this Sublease.

3.             Rent.  Commencing
on the Effective Date, Subtenant shall pay to Sublandlord and shall continue to
pay during the remaining term of this Sublease, the Annual Rent and the
Additional Rent (as hereinafter defined).  Subtenant shall pay the monthly installments
of Annual Rent in advance on the first day of each month during the term of
this Sublease without deduction, set-off, recoupment, counterclaim, or demand,
at Sublandlord’s address.  If the term of
this Sublease shall commence on a day other than the first day of a month, rent
shall be prorated based on a per diem basis, and Subtenant shall pay to
Sublandlord the prorated installment of rent together with one (1) monthly
installment of Annual Rent due for the following month.

During the first year of this Sublease from
the Effective Date, the Annual Rent for the Premises shall be the sum of $5.50
per square foot per annum, multiplied by 118,159, payable in equal monthly
installments.

The Annual Rent shall be adjusted on the
first anniversary of the Effective Date and on each subsequent anniversary of
such date every year thereafter during the Term (each, a “Rent Adjustment Date”).
 On every Rent Adjustment Date, Annual
Rent shall be increased by an amount equal to two and one-half percent (22%) of
the Annual Rent payable immediately preceding the applicable Rent Adjustment
Date.

In addition to the Annual Rent, Subtenant
shall, during the term of this Sublease, pay to Sublandlord the following sums
as additional rent (the “Additional Rent”):

(a)                                  $382,873.44 per
annum, in equal monthly installments of $31,906.12 each, payable in advance on
the first day of each month through and including August 1, 2008;

(b)                                 All utilities
furnished to and consumed upon the Subleased Premises;

(c)                                  Subtenant’s
proportionate share (determined on the basis of the ratio that the square
footage area of the Subleased Premises bears to the aggregate square footage
area of the Building and being 64.2%) of the following costs and expenses:

(i)                                     real property
taxes and general assessments payable in respect of the taxing periods during
the term of this Sublease; and

 

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(ii)                                  Operating
Expenses as such term is defined (and as such expenses are determined) under
Section 11 of the Master Lease.  Payments
in respect of Operating Expenses hereunder shall be due and payable at the
times set forth in Section 11 of the Master Lease for the payment of Operating
Expenses.

(d)                                 In order to
repay the MICRF Loan, Subtenant shall pay $5,730.00 per annum payable in
advance on the first day of each month.  Such
payment shall apply through the term of this Sublease through and including
August 1, 2008.

Sublandlord, provided Subtenant is not in
default under this Sublease (subject to any applicable notice and cure
periods), shall pay to Subtenant those amounts that Sublandlord receives as
interest pursuant to Section 3.2(d) of that certain Financing and Construction
Loan Agreement dated June 2, 1995, between Sublandlord, Subtenant, The
Whiting-Turner Contracting Company, the Mayor and the City of Baltimore and
Signet Trust Company (the “Loan Agreement”).  Such amounts shall be paid quarterly, based
upon Sublandlord’s report to Subtenant of the interest received over the prior
three-month period.  The first such
payment shall be made on July 15, 1998 (accounting for all interest Sublandlord
received prior to such date regardless of the number of months covered) and
subsequent payments shall be made on or about the 25th day of each succeeding
quarter of each year during the term of this Sublease (as the same may be
extended) and shall continue until the “Reserve Fund” (as defined in the Loan
Agreement) is fully disbursed, at which time the last payment hereunder shall
be equal to the interest received by Sublandlord calculated from the date of
computation of the immediately preceding payment through the date of such final
disbursement.  Sublandlord covenants
that, subject to and except for the rights of the “Holder” (as defined in the
Loan Agreement), under the Loan Agreement, Sublandlord’s right to such interest
payments is not subject to any pledge, encumbrance or security interest, and
agrees that it shall not further pledge, encumber or grant a security interest
in its right to such interest payments.

Subject to the rights of the Holder under the
Loan Agreement, Sublandlord hereby pledges, assigns, transfers and grants a
security interest in such interest payments to Subtenant as security for its
obligations hereunder, and agrees, upon Subtenant’s request, to execute such
further assurances and U.C.C. financing statements as Subtenant may reasonably
request to perfect such security interest.

Notwithstanding anything contained in the
foregoing to the contrary, Subtenant shall be entitled to the benefit of any
and all enterprise zone or tax abatement programs, including without limitation
“economic empowerment zone” programs, and reduction in bond financing terms,
which may relate to or include the Subleased Premises.  Sublandlord shall, and shall use reasonable
efforts to cause Landlord to, apply for and maintain qualification for
inclusion in such programs.

4.             Rent Payments.  In lieu of direct payment to Sublandlord,
Subtenant may make the following payments of rent to the following parties:

 

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(a)                                  To The
Whiting-Turner Contracting Company, or other successor holder of that certain
$3,100,000 Maryland Economic Development Corporation, Taxable Economic
Development Revenue Bond (Osiris Therapeutics, Inc. Facility), 1995 Issue, June
2, 1995, all amounts payable as Additional Rent pursuant to subsection (a) of
Section 3 of this Sublease, as and when such payments are due under this Sublease
and paid by wire transfer as required under Section 2.8 of the Loan Agreement,
with simultaneous notice to Sublandlord of such payments.

(b)                                 To landlord
under the Master Lease, all amounts payable as Annual Rent and Additional Rent
(except as otherwise provided in Section 4(a)) pursuant to Section 3 of this
Sublease, as and when such payments are due under this Sublease, with
simultaneous notice to Sublandlord of such payments.

5.             Late Payments.  In the event that any payment of Annual Rent
or Additional Rent shall be past due for more than ten (10) days, Subtenant
shall pay to Sublandlord as Additional Rent a late charge equal to three
percent (3%) of the unpaid rent, or, if less, the highest rate permitted by
law.  The late charge imposed under this
Section 5 is not a penalty and has been agreed to by Sublandlord and Subtenant
as necessary to compensate Sublandlord for its additional costs associated with
late payment.  In the event that a
payment of Additional Rent shall remain unpaid for more than fifteen (15) days,
Subtenant shall pay to Sublandlord, as Additional Rent, interest on the amount
of such unpaid Additional Rent at the rate of nine and one half percent (92%)
per annum from the date such Annual Rent was initially due to the date of
payment thereof.

6.             Subject to Master Lease.  This Sublease is subject and subordinate to
the Master Lease.  Capitalized terms
which are used but not defined in this Sublease shall have the meaning ascribed
to such terms in the Master Lease.  Sublandlord
covenants and agrees to observe, perform and discharge all of its duties and
obligations under and pursuant to the terms of the Master Lease as and when
required thereby, and to provide Subtenant with true and correct copies of all
notices and other written communications sent or received by Sublandlord with
respect to the Master Lease within five (5) business days of its sending or
receipt thereof.

7.             Assignment and Subletting.  Subtenant shall not assign, transfer,
mortgage, or otherwise encumber this Sublease or all or any of Subtenant’s
rights hereunder or interest herein, or sublet, rent or permit anyone to occupy
the Subleased Premises or any part thereof, without obtaining the express prior
written consent of Sublandlord; provided, however, that assignment of this
Sublease or sublease of all or any portion of the Subleased Premises to any
party owned or controlled by, or under common ownership or control with,
Subtenant or to any corporation or other entity with which or into which
Subtenant may be merged or consolidated, or to any corporation or other entity
which may acquire all or substantially all of Subtenant’s assets or capital
stock, shall not require the consent of Sublandord.

Sublandlord shall not unreasonably withhold
or condition its consent to any other proposed assignment or sublease to a
third party provided that (i) such third party agrees to use the Subleased
Premises only for the purposes permitted by this Sublease and the Master Lease

 

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and executes an assumption
of Subtenant’s obligations hereunder in form satisfactory to Sublandlord, and (ii)
Subtenant shall not be released from its obligations hereunder and shall so
confirm in writing to Sublandlord, (iii) such third party’s tangible net worth
(without regard to goodwill or other intangible assets) shall equal or exceed
Subtenant’s net worth immediately prior to such assignment or sublet, and (iv) such
assignment or sublease is in accordance with Section 30 of the Master Lease.

8.             Use.  Subtenant
shall use and occupy the Subleased Premises solely for the purposes set forth
in the Master Lease.  Sublandlord
acknowledges and agrees that the business of Subtenant as a medical research
and development entity conforms to the use permitted by the Master Lease.

9.             Taxes and Assessments.  In addition to any tax obligations, if any,
set forth in the Master Lease, Subtenant will pay all taxes and assessments of
every kind and description whatsoever levied against any personal property or
equipment owned by Subtenant and located at the Subleased Premises which, if
unpaid, could result in the imposition of a lien against the Subleased
Premises.  So long as Subtenant is
provided with prior written notice of the Landlord’s or Sublandlord’s decision
to contest, in addition to the other payments under this Section 9, Subtenant
shall pay as Additional Rent, within five (5) days of written demand, any
reasonable fees, reasonable expenses, and reasonable costs incurred by
Sublandlord or Subtenant’s Pro Rata Share of any reasonable fees, reasonable
expenses and reasonable costs incurred by Landlord in contesting any Tax, or
any assessments, levies, or tax rate applicable to the Property or portions
thereof, so long as Landlord or Sublandlord undertakes such contest and contests
in good faith and in an appropriate manner or by appropriate proceedings.  For purposes of this Section “Subtenant’s Pro
Rata Share” shall mean the percentage equivalent to a fraction having as its
numerator the number of net rentable square feet in the Subleased Premises and
as its denominator the number of net rentable floor space in the Building.

10.           Additions to the Building.  Pursuant to the terms of the Master Lease,
Landlord shall have the exclusive right to use all or any part of the roof or
exterior walls of the Building for any purpose, provided, however, in
connection with any exercise by Landlord of any rights of entry or access to
the Subleased Premises described in this Section 10 or in any other provision
of this Sublease, Landlord and its contractors shall use reasonable efforts to
avoid interference with the use or occupancy of the Subleased Premises by
Subtenant, and not materially interfere with Subtenant’s business or
activities; to make alteration to and to build additional stories on the
Building in which the Subleased Premises are located and to build adjoining the
same, provided, however, that such use does not materially interfere with
Subtenant’s business or activities; and to erect and maintain in connection
with any construction thereof, temporary scaffolds and other aids to
construction on the exterior of the Building, provided, however, that such use
does not materially interfere with Subtenant’s business or activities.  Upon forty-eight (48) hours advance notice,
Landlord shall have access to the Subleased Premises that may be necessary or
desirable to perform such work, and Subtenant shall not be entitled to any
abatement of rent on account thereof unless such work materially interferes
with Subtenant’s business or activities.  Notwithstanding the above or anything else to
the contrary in this Sublease, Subtenant (a) shall have free and unobstructed
access to and from the Subleased Premises at all times during which work or
alterations are being performed pursuant to this Section 10, and (b) may
restrict access by Landlord, Sublandlord, or any other

 

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person from certain restricted areas located within
the Subleased Premises if such areas (i) contain sensitive equipment, experiments,
or other scientific items which could be damaged or destroyed if disturbed by
those other than authorized personnel or (ii) have limited or restricted access
in order to protect on-going scientific or research endeavors (individually or
collectively, the “Restricted Areas”).  Subtenant
shall identify the Restricted Areas in writing in advance to Landlord and
Sublandlord.  In the event of an
emergency requiring immediate access to any Restricted Area, Landlord and
Sublandlord must first notify Subtenant of the situation and the need for
access.  Subtenant may then either permit
access by Landlord or Sublandlord or take immediate and appropriate steps to
remedy the emergency situation.

11.           Inspection.  Subject
to the restrictions set forth in Section 10, Sublandlord and its agents shall
have the right to enter the Subleased Premises, at any time, and from time to
time, after at least twenty-four (24) hours prior notice to Subtenant, to
inspect the condition of the Subleased Premises.  Sublandlord shall use its best reasonable
efforts not to interrupt unreasonably or interfere with Subtenant’s operations
at the Subleased Premises in connection with any such entry or inspection.  Sublandlord recognizes and agrees that the
nature of Subtenant’s business requires that Sublandlord use its best
reasonable efforts to keep confidential any operations or other aspect of
Subtenant’s business observed by Sublandlord in connection with any such entry
or inspection.

12.           Surrender.  (a)
At the expiration or earlier termination of the term of this Sublease,
Subtenant shall peaceably surrender the Subleased Premises in broom clean
condition and good order and repair and otherwise in the same condition as the
Subleased Premises were upon the commencement of this Sublease, except ordinary
wear and tear.

(b)           If Sublandlord elects to require that alterations,
installations, changes, work, replacements, additions, or improvements
comprised within the improvements constructed by or on behalf of Subtenant (the
“TI Work”) and made by or on behalf of Subtenant to the Subleased Premises be
removed at the termination of this Sublease, Subtenant hereby agrees to cause
the same to be removed at its sole cost and expense.  If Subtenant fails to remove the same,
Sublandlord may cause them to be removed at Subtenant’s expense, and Subtenant
hereby agrees to reimburse Sublandlord for the cost of such removal together
with all and any damages which Sublandlord may suffer and sustain by reason of
failure of Subtenant to remove the same.  At Sublandlord’s election, any or all of the
TI Work, alterations, installations, changes, replacements, additions to, or
improvements made by Subtenant upon the Subleased Premises shall remain at the
termination of this Sublease and not be removed.  Subtenant shall surrender to Sublandlord all
keys for the Subleased Premises at the place then fixed for the payment of rent
and shall notify Sublandlord in writing of all combinations of locks, safes,
and vaults, if any, in the Subleased Premises.  Subtenant’s obligations to observe and perform
the covenants set forth in this Section 12 shall survive the expiration or
earlier termination of this Sublease.

(c)           At the termination of this Sublease, Subtenant shall
immediately remove all personal property which it owns and is permitted to
remove from the Subleased Premises under the provisions of this Sublease, and
failing to do so, Sublandlord at its option may either (i) cause that personal
property to be removed at the risk and expense of Subtenant (both as to loss
and damage), and Subtenant hereby agrees to pay all reasonable costs and
expenses incurred thereby, including sums paid to store the personal property
elsewhere and the cost of any repairs

 

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to the Subleased Premises caused by the removal of
the property, or (ii) upon twenty (20) days written notice to Subtenant, which
the parties agree is commercially reasonable, sell at public or private sale
any or all such personal property, whether exempt or not from sale under
execution or attachment (such property being deemed charged with a lien in
favor of Sublandlord for all sums due hereunder), with the proceeds to be
applied as Sublandlord desires, or (iii) at Sublandlord’s option, title shall
pass to Sublandlord.

13.           Insurance.  Subtenant
will indemnify and save harmless Landlord and Sublandlord and their respective
successors and assigns, from any and all claims, demands, actions, causes of
action, and judgments, for bodily injury or property damage, asserted by any person
arising out of Subtenant’s use and occupancy of the Subleased Premises.  Subtenant shall, throughout the term of this
Sublease, keep in full force and effect, at its own expense, (a) comprehensive
general liability insurance with respect to claims for personal injury, death
and damages to property at or relating to the Subleased Premises in the amount
of $5,000,000 for personal injury or death or property damage resulting from
any one occurrence, and $5,000,000 in the aggregate, and (b) hazardous material/environmental
insurance in form required by the Master Lease affording coverage in an amount
of $2,000,000 and (c) such other insurance as may be required by Section 21(a)
of the Master Lease in such form and amounts required thereby and (d) such other
insurance as the Sublandlord may deem reasonably necessary.  All such insurance must be maintained in
accordance with all applicable laws of the State of Maryland and the
Sublandlord and the Landlord shall be named as additional insureds in all such
insurance policies.  Such policies shall
contain a provision for not less than thirty (30) days notice to Sublandlord
and Landlord prior to modification or cancellation of such insurance policies
as well as a waiver of subrogation provision.  Subtenant will furnish evidence of such
insurance coverage to Sublandlord and Landlord promptly following the execution
hereof.  Sublandlord and Subtenant will
cooperate in good faith with respect to the settlement and compromise of any
claim arising under any insurance policy maintained pursuant to this Section
13, provided that Subtenant shall have the exclusive right to settle or
compromise any claims made under the insurance maintained by Subtenant
hereunder.

14.           Environmental.  Subtenant shall comply with all Environmental
Laws (as hereinafter defined) relating to its use of the Subleased Premises
including, without limitation, the obligation to obtain and maintain in effect
and comply with all permits and reporting and notification requirements
applicable to such use.  As used in this
Sublease, the term “Hazardous Materials” means, (a) any “hazardous substance”
as defined in Section 101(4) of CERCLA (42 U.S.C. Section 9601(14)) or
regulations promulgated thereunder; (b) any “solid waste”, “hazardous waste”, “toxic
substances” or “infectious waste”, as such terms are defined in any other
Environmental Law; and (c) asbestos (or any substance containing asbestos),
polychlorinated biphenyls (“PCBs”), nuclear fuel or material, radioactive
materials, explosives, chemicals known or suspected to cause cancer or
reproductive toxicity, pollutants, effluents, contaminations, emissions,
petroleum products and by-products and other toxic or hazardous materials or
substances listed or identified in, or regulated by, any Environmental Laws.  As used in this Sublease, the term “Environmental
Laws” means the Comprehensive Environmental Response Compensation and Liability
Act (“CERCLA”), 42 U.S.C. Section 9601 et seq., as amended by the Superfund
Amendment and Reauthorization Act of 1986 (“SARA”), the Resource Conservation
and Recovery Act, 42 U.S.C. Section 6901 et seq., the Hazardous Materials
Transportation Act, 49 U.S.C. Section 1802 et seq., the Hazardous Materials

 

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Transportation Act, 49 U.S.C. Section 1802 et seq.,
the Toxic Substances Control Act, 15 U.S.C. Section 2601 et seq., the Federal
Water Pollution Control Act, 33 U.S.C. Section 1251 et seq., the Clean Water
Act, 33 U.S.C. 1321 et seq., the Clean Air Act, 42 U.S.C. Section 7401 et seq.,
the Safe Drinking Water Act, 42 U.S.C. Section 300f et seq., the Occupational
Safety and Health Act, 29 U.S.C. Section 655 et seq., the Federal Insecticide,
Fungicide and Rodenticide Act, 7 U.S.C. Section 136 et seq. and any other
present or future local, state, Federal or international law, treaty, statute,
ordinance, rule, regulation, advisory or guideline having the force of law
relating to public health, safety or the environment and any and all
amendments, regulations, orders, decrees, permits, licenses or restrictions now
or hereafter promulgated thereunder.  Subtenant
hereby agrees that (a) no activity will be conducted on the Subleased Premises
that will produce or cause the release of any Hazardous Materials in violation
of any Environmental Law; (b) the Subleased Premises will not be used in any
manner for the storage of any Hazardous Materials in violation of any
Environmental Law; (c) Subtenant will not permit any Hazardous Materials in
violation of any Environmental Law to be brought onto the Subleased Premises;
and if so brought or found located thereon, the same shall be immediately
removed, at Subtenant’s sole cost and expense; all required cleanup and
disposal procedures shall be diligently undertaken in accordance with all
Environmental Laws, and upon request Subtenant shall provide Sublandlord with
evidence satisfactory to Sublandlord of Subtenant’s compliance with all
Environmental Laws.  If at any time
during or after the term of this Sublease, the Subleased Premises are found to
be contaminated with Hazardous Materials in violation of any Environmental Law
resulting from Subtenant’s use thereof or Subtenant’s use of the Subleased
Premises which results in a violation or alleged violation of any Environmental
Law, Subtenant agrees to indemnify, hold harmless, protect and defend Landlord
and Sublandlord from all claims, demands, actions, liabilities, costs, expenses
(including reasonable attorneys’ fees), damages and obligations of any nature
arising from or as a result of the use of the Subleased Premises by Subtenant,
as set forth below.  This indemnification
shall survive the termination or expiration of this Sublease.

Subtenant agrees to indemnify, defend, and
hold Sublandlord and Landlord harmless from any claims, losses, costs,
expenses, damages, liabilities or causes of action (including reasonable
attorneys’ fees) which (a) arise during or after the term of this Sublease and
are related to or connected with the use or occupancy by Subtenant and/or any
assignee, subtenant concessionaire, or licensee of the Subleased Premises, or (b)
result or arise out of or pertain to the failure by Subtenant to comply with
all Environmental Laws at the Subleased Premises, provided such indemnification
shall not apply to the negligence of willful acts of Sublandlord or Landlord or
their respective contractors or subcontractors, or its or their agents or
employees.

Notwithstanding anything above to the
contrary, Sublandlord shall permit Subtenant to bring into the Subleased
Premises, store and use such Hazardous Materials as are essential to the
operation of Subtenant’s business so long as such business constitutes a
permitted use of the Subleased Premises, provided, however, that such Hazardous
Materials are normally and customarily used in similar businesses; that
Subtenant maintains a record of all material safety data sheets for any such
material used or located at the Subleased Premises, which would be available
for inspection by Sublandlord and Landlord at any time during normal business hours;
annually, on the anniversary of the Effective Date, Subtenant shall provide
Sublandlord and Landlord with copies of all such material safety data sheets
for Hazardous Materials then

 

9

 

used or kept at the
Subleased Premises; that Subtenant only bring into the Subleased Premises and
store such quantities of any Hazardous Material as are necessary for Subtenant’s
business activities; that Subtenant provide written notification in advance to
Sublandlord and Landlord of any Hazardous Materials which Subtenant proposes to
store on site in excess of two (2) gallons of each such material so that
Sublandlord and/or Landlord may confirm with the applicable insurer(s) that
such storage shall not be in violation of the applicable insurance policies;
that Subtenant comply with all requirements of Landlord’s insurer(s) regarding
handling and storage of such Hazardous Materials; that Subtenant comply with
all Environmental Laws with regard to any such Hazardous Materials; and that
Subtenant agree never to dispose of any such Hazardous Materials on the
Subleased Premises, Building and/or Property or adjacent property and that
Subtenant agree to properly dispose of any such Hazardous Materials off-site in
accordance and compliance with all Environmental Laws.  Further, if Subtenant breaches the foregoing,
Subtenant shall give Sublandlord and Landlord written notice of such breach and
shall immediately undertake remedial action in accordance with applicable
Environmental Laws.

15.           Default.  Should
Subtenant default in the performance of any obligation or duty imposed upon it
by the terms and conditions of this Sublease (including without limitation the
payment of Annual Rent or Additional Rent), or by the terms and conditions of
the Master Lease, in addition to all other rights given it as Sublandlord by
law, Sublandlord shall have the right, after written notice to Subtenant
specifically describing such default and an opportunity for Subtenant to cure
such default within five (5) days thereafter for any monetary default and
within thirty (30) days thereafter for any non-monetary default, unless such
non-monetary default is not capable of being cured within such thirty-day
period then such period shall be extended so long as Subtenant commences such
cure within such thirty-day period and diligently pursues completion thereof,
to (a) terminate this Sublease, or (b) at its option, re-enter the Subleased
Premises without terminating this Sublease and thereafter, as agent for Subtenant,
re-rent the Subleased Premises to any third party, applying the net proceeds to
such rental, after deducting all reasonable expenses incurred in connection
therewith, to the rental due Sublandlord hereunder, and Subtenant shall remain
liable to Sublandlord for any deficiency in such rent.

16.           Hold Harmless.  Subtenant agrees that it will defend,
indemnify and hold Sublandlord and Landlord harmless, from and against any and
all losses, claims, damages or expenses which it may incur, suffer or expend
from any default of Subtenant or failure of the Subtenant to perform fully its
obligations under the terms and conditions of the Master Lease (in so far as
the same pertain to the Subleased Premises) and/or this Sublease, including the
payment of reasonable attorneys’ fees.  Such
indemnification shall be with respect only to losses, claims, damages or
expenses which arise from or relate to events, acts or circumstances occurring
during the term of this Sublease.  Subtenant
shall also pay all costs, expenses, and reasonable attorneys’ fees that may be
expended or incurred by Sublandlord in enforcing the covenants and agreements
of this Sublease should Sublandlord prevail in such action(s).  Such indemnification shall survive the
termination of this Sublease.

Notwithstanding anything to the contrary
contained in this Sublease, Sublandlord and Subtenant do mutually each release
and discharge the other, and all persons against whom the insurance company or
companies would have a right or claim by virtue of subrogation, of and from all
suits, claims, and demands whatsoever, for loss or damage to the property of
the other, even if caused by or occurring through or as a result of any
negligent act or omission of

 

10

 

the party released hereby or
its contractors, subcontractors, agents, or employees, so long as and to the
extent that such loss or damage is covered by insurance benefitting the party
suffering such loss or damage or was required to be so covered under this Sublease.
 Each party further agrees that each at
its own cost will cause its policies of insurance for fire and extended
coverage to be so written as to include a waiver of subrogation by causing such
policies to contain a clause in substantially the following form:

It is hereby stipulated that this insurance
shall not be invalidated should the insured or any of them waive in writing
prior to a loss any or all right of recovery against any person or entity for
loss occurring to the property described herein.

The provisions of this Section shall survive
the termination or earlier expiration of the term of this Sublease with respect
to any loss, damage, injury, or death occurring prior to such termination.

17.           Compliance with Master Lease.  Sublandlord shall pay all sums payable to the
Landlord under the Master Lease throughout the term of this Sublease and shall
observe, perform and discharge all of its obligations under the Master Lease as
and when required thereby, and shall not consent to anything or do anything or
fail to do anything which would or could terminate the Master Lease or create
any default under the Master Lease or waive or exercise any right it shall have
under the Master Lease without Subtenant’s express prior written consent in
each instance.  Sublandlord shall not,
without in each case obtaining the prior written consent of Subtenant (which
consent shall not be unreasonably withheld or delayed), modify, amend, or
supplement the Master Lease, or waive the performance of any obligations of
Landlord thereunder.

18.           Estoppel Certificate.  Upon the request of either party, at any time
from time to time, Sublandlord and Subtenant agree to execute and deliver to
the other, within thirty (30) days after such request, a written instrument,
duly executed, (a) certifying that this Sublease has not been modified and is
in full force and effect or, if there has been a modification of this Sublease,
that this Sublease is in full force and effect as modified, stating such
modifications, (b) specifying the date to which the Annual Rent and, if any,
Additional Rent has been paid, (c) stating whether, to the knowledge of the
party executing such instrument, the other party hereto is in default and, if
such party is in default stating the nature of such default, and (d) stating
the date of commencement of Annual Rent.

19.           Fixtures.  Subject
to the terms of Section 12 of this Sublease, all fixtures and equipment placed
on the Subleased Premises by Subtenant may be removed by Subtenant at any time
during the term of this Sublease and within two (2) months of the expiration or
termination of this Sublease.  In the
event of any such removal, Subtenant shall promptly repair, at its own expense,
all damage to the Subleased Premises caused by the removal of such fixtures or equipment.

20.           Condemnation.  Subtenant hereby assigns to Sublandlord all
awards to which it may be or become entitled and which it must remit to the
Sublandlord in the event of any taking for any public or quasi-public use by
any lawful power or authority by exercise of the right of condemnation or of
eminent domain affecting all or any part of the Subleased Premises,

 

11

 

which occurs during the term of this Sublease;
provided, however, that Subtenant shall, at its sole cost and expense, be
entitled to maintain an action against the condemning authority for loss of
business and damage to Subtenant’s fixtures and personalty.  In furtherance hereof, Subtenant hereby grants
Sublandlord the sole right to file all claims and to bring such causes of
action as Sublandlord shall desire for the purpose of obtaining any such award.
 Subtenant hereby covenants to notify
promptly Sublandlord of all such takings of which Subtenant has knowledge or of
which Subtenant receives notice.  Subtenant
hereby agrees to cooperate at Sublandlord’s expense with Sublandlord to the
fullest extent possible in the bringing of such causes of action and in filing
such claims for such awards.

21.           Repairs.  In
the event a condition exists in the Subleased Premises that Landlord is
obligated to repair under the Master Lease, Subtenant shall so advise
Sublandlord, and Sublandlord, in turn, shall advise Landlord thereof.  Sublandlord shall have no liability to
Subtenant for Landlord’s failure to make any such repair; provided, however,
that Sublandlord shall diligently seek to enforce its rights and Landlord’s
obligations under the Master Lease.

Sublandlord shall keep, or cause to be kept,
the structure, common areas and any shared Building systems or equipment,
including without limitation, any shared system providing heating, ventilation
or air conditioning in a constant state of good condition and repair, and shall
perform all maintenance and repair which may be or become necessary or
appropriate in connection therewith.  Subtenant
agrees that Landlord and not Sublandlord shall be responsible for all repairs
to the roof of the Building and Sublandlord grants and assigns to Subtenant all
rights of Sublandlord under the Master Lease to enforce Sublandlord’s rights
and to compel Landlord to fulfill Landlord’s obligations with respect to the
roof and other repairs.  Subtenant shall
perform, or cause to be performed, all maintenance and repair of the Subleased
Premises, excluding the structural elements of the Building and any other
shared systems or facilities serving the Subleased Premises and other space
within the Building or the property.  Subtenant
shall have the right at its sole cost and expense to install and maintain a
security system serving the Subleased Premises exclusively.

Notwithstanding anything contained herein to
the contrary, Sublandlord shall have no responsibility with respect to any
damage to the roof of the Building, or the floor of that portion of the
Subleased Premises described in Exhibit A-2 attached hereto, or any
associated damage to the Subleased Premises or the Subtenant’s property located
therein in connection with any tenant improvement work made to the Subleased
Premises.

22.           Quiet Enjoyment.  Sublandlord hereby covenants and agrees that
if Subtenant shall fully perform, comply with and observe all of the covenants and
agreements herein stipulated to be performed on Subtenant’s part, Subtenant
shall at all times during the term of this Sublease have peaceable and quiet
enjoyment and possession of the Subleased Premises without hindrance from
Sublandlord or any person or persons claiming the Subleased Premises by,
through or under Sublandlord; subject, however, to (x) matters affecting title
to the Premises to which this Sublease is subordinate and (y) the terms of the
Master Lease; provided, however, that Sublandlord’s covenant and obligation to
observe, perform and comply with the Master Lease shall not be limited or
restricted by this reference.

 

12

 

23.           Nondisturbance.  Sublandlord shall, or shall use reasonable
efforts to cause Landlord to, procure from any present or future holder of any
mortgage, leasehold mortgage, deed of trust, or underlying or ground lease,
including, without limitation, any refinancing, replacement, renewal,
modification, extension or consolidation thereof which is placed upon Landlord’s
or Sublandlord’s respective interest in the Subleased Premises from time to
time by Landlord or Sublandlord, an agreement providing in substance that so
long as Subtenant shall discharge the obligations on its part to be kept and
performed under the terms of this sublease, Subtenant’s tenancy will not be
disturbed nor this Sublease affected by any default under such mortgage, deed
of trust or underlying or ground lease.

24.           Effect on Insurance.  Subtenant will not do, omit to do or suffer to
be done or keep or suffer to be kept anything in, upon or about the Property
(as defined in the Master Lease) which will violate the provisions of Landlord’s
or Sublandlord’s policies insuring the Building against loss or damage by fire,
or other hazards (including, but not limited to, public liability), which will
adversely affect Landlord’s or Sublandlord’s fire or liability insurance
premium rating or which prevent Landlord or Sublandlord from procuring such
policies in companies acceptable to Landlord or Sublandlord.  If anything done, omitted to be done, or
suffered to be done by Subtenant, or kept or suffered by Subtenant to be kept
in, upon or about the Property shall cause the premium rate of fire or other
insurance on the Property in companies acceptable to Landlord or Sublandlord to
be increased beyond the established rate from time to time fixed by the
appropriate underwriters with regard to the use of the Subleased Premises for
the purposes permitted under this Sublease or to the Property for the use or
uses being made thereof, Subtenant will pay the amount of such increase as
Additional Rent within five (5) days of Sublandlord’s demand in writing and
will thereafter pay the amount of such increase, as the same may vary from time
to time, with respect to every premium relating to coverage of the Premises and
the Property during a period falling within the term of this Sublease until
such increase is eliminated.  In
addition, if applicable, Sublandlord may at its option rectify the condition
existing on the Property which is causing or is a contributing cause of the
increased premium rate in the event that the Subtenant should fail to do so,
provided that such condition is not a permitted use of the Subleased Premises
as contemplated by this Sublease, and Sublandlord may charge the cost of such
action to Subtenant as Additional Rent, payable within five (5) days of written
demand together with the late charge specified in Section 3, which shall accrue
from the date that Sublandlord became obligated for the costs of such action.  In determining whether increased premiums are
the result of Subtenant’s use of the Subleased Premises or elsewhere on the
Property, a schedule, issued by the organization setting the insurance rate on
the Subleased Premises and the Property, showing various components of such
rate, shall be conclusive evidence of the several items and charges which make
up the fire insurance on the Subleased Premises and the Property.

If for any reason including, but not limited
to, the abandonment of the Subleased Premises, Subtenant’s failure to pay any
insurance premium, or Subtenant’s failure to occupy the Subleased Premises as
herein permitted, Subtenant fails to provide and keep in force any or all of
the insurance policies set forth in Section 13, then in such event Subtenant
shall indemnify and hold Landlord and Sublandlord harmless against any loss
which would have been covered by such insurance.

 

13

 

25.           Total or Partial Destruction of Premises.  As provided in the Master Lease, if the
Subleased Premises are damaged by fire or other casualty but are not thereby
rendered untenantable in an amount in excess of fifty percent (50%) of the
entire Subleased Premises and such damage is, in the opinion of an independent
architect or consultant selected by Landlord, capable of being repaired using
reasonable diligence within one hundred and eighty (180) days after the loss,
Landlord, at its own expense, subject to the limitations set forth in the
Master Lease, shall cause such damage to be repaired, and the Annual Rent and
Additional Rent shall not be abated.  As
provided in the Master Lease, if by reason of any damage or destruction to the
Subleased Premises wherein the Subleased Premises shall be rendered
untenantable in an amount in excess of fifty percent (50%) of the entire
Subleased Premises, (i) Landlord, at its own option, at its own expense,
subject to the limitations set forth in the Master Lease, may cause the damage
to be repaired if such damage, in the opinion of an independent architect or
consultant selected by Landlord, is capable of being repaired by using reasonable
diligence within one hundred and eighty (180) days after the loss, and the
Annual Rent and Additional Rent shall be abated proportionately as to the
portion of the Subleased Premises rendered untenantable while it is
untenantable, or (ii) Landlord shall have the right, to be exercised by notice
in writing delivered to Sublandlord within thirty (30) days from and after the
occurrence of such damage or destruction, to terminate the Master Lease (in
which event this Sublease shall also terminate and Sublandlord shall so provide
notice to Subtenant), and the Annual Rent and Additional Rent shall be adjusted
as of the date of the occurrence of the casualty giving rise to such loss.  As provided in the Master Lease, in no event
shall Landlord be obligated to expend for any repairs or reconstruction
pursuant to this Section 25 an amount in excess of the insurance proceeds, if
any, recovered by it and allocable to the damage to the Subleased Premises
after deducting therefrom Landlord’s reasonable expenses in obtaining such
proceeds and any amounts required to be paid to Landlord’s mortgagee.

Subtenant covenants and agrees that it will
give written notice to Sublandlord of any accident or damage, whether such
accident or damage is caused by insured or uninsured casualty, occurring in, on
or about the Subleased Premises within five (5) business days after Subtenant
has knowledge of the occurrence of such accident or damage.

Notwithstanding anything herein to the
contrary, Sublandlord shall have no obligation to repair or restore the
Subleased Premises in the event of a casualty thereto.

26.           Alterations.  Subtenant agrees that it will not make any
alterations (whether structural or otherwise), improvements, additions,
repairs, or changes to the interior or exterior of the Subleased Premises
during the term of this Sublease without in each instance obtaining Sublandlord’s
prior written consent, which consent may not be unreasonably withheld, delayed
or denied.  Together with each request
for consent, Subtenant shall present to Sublandlord reasonably detailed plans
and specifications for such proposed alterations, improvements, additions,
repairs or changes; provided, however, approval of such plans and
specifications by Sublandlord shall not constitute an assumption of responsibility
by Sublandlord for their accuracy or sufficiency, and Subtenant shall be solely
responsible for such items.  All
alterations, improvements, additions, repairs, or changes shall be done either
by or under the direction of Sublandlord, but at the expense of Subtenant.

 

14

 

27.           Mechanics’ Lien.  Subtenant shall not do or suffer to be done
any act, matter or thing whereby Sublandlord’s or Subtenant’s interest in the
Subleased Premises, or any part thereof, may be encumbered by any mechanics’
lien.  Subtenant shall discharge or stay
the enforcement by bond or otherwise, within sixty (60) days after the date of
filing, any mechanics’ liens filed against Subtenant’s interest in the
Subleased Premises, or any part thereof, purporting to be for labor or material
furnished to Subtenant.  Sublandlord may,
at its option, discharge any such mechanics’ lien not discharged by Subtenant
within such sixty (60) day period, and Subtenant, within five (5) days of
written demand, shall reimburse Sublandlord for any such reasonable expense
incurred by Sublandlord.  Any reasonable
monies expended by Sublandlord shall be deemed Additional Rent, collectible as
such by Sublandlord and the late charge specified in Section 5 shall accrue
from the date Sublandlord becomes obligated for such expenses.  Sublandlord shall not be liable for any labor
or materials furnished or to be furnished to Subtenant upon credit, and no
mechanics’ or other lien for labor or materials shall attach to or affect the
interest of Sublandlord in and to the Subleased Premises or the Building.

28.           Sublandlord’s Representations and Warranties.  Sublandlord represents and warrants to
Subtenant that (i) to Sublandlord’s knowledge the Subleased Premises are zoned
so as to permit the use of the Subleased Premises as intended by Subtenant, (ii)
Sublandlord will neither do, nor to the extent of its right to control the
same, permit any other tenant or occupant of the Building to take any action
which would jeopardize Subtenant’s right to use the Subleased Premises for its
intended purposes throughout the term of this Sublease, and (iii) to
Sublandlord’s knowledge and without any independent investigation: (a) no
Hazardous Materials have been used, stored, generated, or disposed on the
Property in connection with any activity conducted thereon, and (b) there are
no Hazardous Materials or storage tanks of any kind in, at, on or under the
property.  For purposes of this Section
28, “Sublandlord’s knowledge” shall mean the knowledge of Hans F. Mayer (in his
capacity as Executive Director of the Sublandlord) who is the individual with
superior knowledge of any such matter.

29.           Accord and Satisfaction.  No payment by Subtenant or receipt by
Sublandlord of a lesser amount than any payment of Annual Rent or Additional
Rent herein stipulated shall be deemed to be other than on account of the
earliest stipulated Annual Rent or Additional Rent due and payable, nor shall
any endorsement or statement on any check or any letter accompanying any check
or payment as rent be deemed an accord and satisfaction.  Sublandlord may accept such check or payment
without prejudice to Sublandlord’s right to recover the balance of such rent or
pursue any other remedy provided in this Sublease, at law or in equity.

30.           Holding Over.  Should Subtenant hold over in possession of
the Subleased Premises after the expiration of this Sublease, Subtenant should
be deemed to be occupying the Subleased Premises from month to month, subject
to such occupancy’s being terminated by either party upon at least thirty (30)
day’s written notice, at double the Annual Rent and Additional Rent in effect
at the expiration of this Sublease, all calculated from time to time as though
this Sublease had continued, and otherwise subject to all of the other terms,
covenants, and conditions of this Sublease in so far as the same may be
applicable to a month-to-month tenancy.  In
addition, Subtenant shall pay as Additional Rent to Sublandlord for all damages
sustained by reason of Subtenant’s retention of possession.  Nothing in this Section 30 excludes
Sublandlord’s right of re-entry or any other right hereunder.

 

15

 

31.           Waivers.  The
failure of Sublandlord to insist for a period of time on strict performance of
any one or more of the terms, covenants, or conditions hereof shall not be
deemed a waiver of the rights or remedies that Sublandlord may have, and shall
not be deemed a waiver of any subsequent breach or default in any term,
covenant, or condition hereof.  No waiver
by Sublandlord of any provision hereof shall be deemed to have been made unless
expressed in writing and signed by Sublandlord.

32.           Remedies for Sublandlord.  Any and all remedies available to Sublandlord
for the enforcement of the provisions of this Sublease are cumulative and not
exclusive, and Sublandlord shall be entitled to pursue either the rights
enumerated in this Sublease or remedies authorized by law, or both.  Subtenant shall be liable for any costs or
expenses incurred by Sublandlord in enforcing any terms of this Sublease, or in
pursuing legal action for the enforcement of Sublandlord’s rights, including
court costs and reasonable attorney’s fees, in amounts to be affixed by court.

33.           Waiver of Trial by Jury.  Sublandlord and Subtenant hereby waive trial
by jury in any action or proceeding or counterclaim brought by either party
hereto against the other party on any and every matter, directly or indirectly,
arising out of or with respect to this Sublease.

34.           Calculation of Time.  In computing any period of time prescribed or
allowed by any provision of this Sublease, the day of the act, event or default
from which the designated period of time begins to run shall not be
included.  The last day of the period so
computed shall be included, unless it is a Saturday, Sunday or a legal holiday,
in which event the period runs until the end of the next day which is not a
Saturday, Sunday or legal holiday.  Unless
otherwise provided herein, all notice and other periods expire as of 5:00 p.m.
(local time in Maryland) on the last day of the notice or other period.

35.           Time of the Essence.  Time is of the essence in all provisions of
this Sublease.  Sublandlord and Subtenant
acknowledge their duties to exercise their rights and remedies, and perform
their duties in good faith and deal fairly with each other.

36.           Successors and Assigns.  The terms and provisions of this Sublease
shall inure to the benefit and be binding upon the respective successors and
assigns of Subtenant and Sublandlord.  This
Section 36 is not intended, nor shall it be construed to modify, vary or
otherwise alter the provision of Section 7 of this Sublease.

37.           Entire Agreement.  This Sublease contains the entire agreement of
the parties, with regard to the subleasing, occupancy and use of the Sublease
Premises, and no representations, inducements, promises or agreements, oral or
otherwise, not embodied herein, shall be of any force or effect.

38.           Notices.  In
every instance in which notice is required to be given hereunder, such notice
shall be in writing and personally delivered, sent by telecopier, or sent by
certified or registered mail addressed as follows:

 

16

 

	
  If to Sublandlord:

  	
  36 South Charles Street

  Suite 2410

  Baltimore, Maryland 21201

  
	
   

  	
  Attn.:

  	
  Hans F. Mayer

  
	
   

  	
   

  	
  Executive Director

  
	
   

  	
  Telecopier Number: (410)
  625-1848

  
	
   

  	
   

  
	
  with a copy to:

  	
  John A. Stalfort

  
	
   

  	
  Miles & Stockbridge
  P.C.

  
	
   

  	
  10 Light Street

  
	
   

  	
  Baltimore, Maryland 21202

  
	
   

  	
  Telecopier Number: (410)
  385-3700

  
	
   

  	
   

  
	
  If to Subtenant:

  	
  2001 Aliceanna Street 

  
	
   

  	
  Baltimore, Maryland 21231

  
	
   

  	
  Attn.:

  	
  President and Chief
  Executive Officer

  
	
   

  	
  Telecopier Number: (410)
  732-4286

  
	
   

  	
   

  
	
  with a copy to:

  	
  John P. Evans, Esquire

  
	
   

  	
  Whiteford, Taylor &
  Preston L.L.P. 

  
	
   

  	
  400 Court Towers   

  
	
   

  	
  210 W. Pennsylvania Avenue

  
	
   

  	
  Towson, Maryland 21204

  
	
   

  	
  Telecopier Number: (410)
  832-2015

  
	
   

  	
   

  
	
  If to Landlord:

  	
  c/o Alexandria Real Estate
  Equities, Inc. 

  
	
   

  	
  135 N. Los Robles Avenue 

  
	
   

  	
  Suite 250

  
	
   

  	
  Pasadena, California 91101

  
	
   

  	
  Attn: General Counsel

  
	
   

  	
  Telecopier Number: (626)
  578-0770

  
	
   

  	
   

  
	
  with a copy to:

  	
  c/o Alexandria Real Estate
  Equities, Inc.

  
	
   

  	
  11440 West Bernardo Court

  
	
   

  	
  Suite 170

  
	
   

  	
  San Diego, California
  92127

  
	
   

  	
  Attn: General Counsel

  
	
   

  	
  Telecopier Number: (619)
  592-6814

  
				

 

All notices sent by mail shall be deemed
given the second day after the same are posted.  All notices sent by telecopier shall be deemed
given the day sent, but such notices shall be sent promptly by first class mail
as well.  Either party may change the
address or telecopier number to which notices to it are to be sent by sending
written notice of such new address or telecopier number to the other party.

 

17

 

39.           Partial Invalidity.  In the event any provision of this Sublease
(or any party of any provision) is held by a court of competent jurisdiction to
be invalid, illegal, or unenforceable in any respect, such invalidity,
illegality, or unenforceability shall not affect any other provision (or
remaining part of the affected provision) of this Sublease, but this Sublease
shall be construed as if such invalid, illegal, or unenforceable provision (or
part thereof) had not been contained in this Sublease, but only to the extent
it is invalid, illegal, or unenforceable.

40.           Captions.  The
captions herein set forth are for convenience only and shall not be deemed to
define, limit, or describe the scope or intent of this Sublease.

41.           Governing Law.  The provisions of this Sublease shall be
construed, interpreted and enforced in accordance with the laws of the State of
Maryland as the same may be in effect from time to time.

42.           Amendments.  This
Sublease may not be modified or amended except by an agreement in writing,
signed by the party against whom enforcement of the change is sought.

43.           Counterparts.  This Sublease may be executed in any number of
counterparts, each of which shall be considered an original for all purposes,
but all such counterparts shall together constitute one and the same
instrument.

44.           Optional Allowance.  Sublandlord hereby assigns to Subtenant all of
Sublandlord’s rights to the Optional Allowance as defined and described in
Section 65 of the Master Lease.

45.           Temporary Premises.  Sublandlord hereby sublets to Subtenant and
Subtenant hereby sublets from Sublandlord 29,000 rentable square feet of space
on the first floor of the Building, as shown on Exhibit A-4 attached hereto and
made a part hereof (the “Temporary Premises”) for a term commencing on the
Effective Date and expiring on the last day of the month during which the first
anniversary of the Effective Date occurs.  Rent for the Temporary Premises shall be at
the rate of One Hundred Forty Five Thousand Dollars ($145,000) per annum,
payable, in advance, in equal monthly installments on the first day of each
calendar month, except that rent for the period from the Effective Date through
the last day of the month during which the Effective Date occurs shall be paid
within three (3) days following the Effective Date.  Subtenant shall accept the Temporary Premises
in its “as is” condition as of the date hereof, subject to reasonable wear and
tear between the date hereof and the Effective Date.  To the extent Sublandlord receives such sums
from Landlord under the Master Lease, Sublandlord shall pay to Subtenant, as a
tenant improvement allowance, the sum of One Hundred Forty Five Thousand
Dollars ($145,000) payable in twelve (12) equal monthly installments on the
first day of each calendar month commencing on the first day of the calendar
month following the calendar month during which the Effective Date occurs.  If and to the extent that Sublandlord fails to
pay to Subtenant any portion of the tenant improvement allowance payable
pursuant to this Section 45, Subtenant shall have the right to offset such
unpaid tenant improvement allowance against rent for the Temporary Premises.  In the event that Landlord terminates the
lease of the Temporary Space to Sublandlord, the subleasing of the Temporary
Space to Subtenant shall automatically be terminated effective as of the day
preceding the effective date of the termination of the lease of the Temporary
Space.  Except to the extent otherwise
specifically provided in this Section 45, the subleasing of the Temporary Space
is upon the same terms, covenants and conditions as are set forth in this
Sublease.

 

18

 

IN WITNESS WHEREOF, the parties hereto have
caused this Sublease to be properly executed under seal as of this 2nd day of July,
1998.

	
  WITNESS/ATTEST: 

  	
  SUBLANDLORD:

  MARYLAND ECONOMIC

  DEVELOPMENT CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/
  Charlotte B. Trainor

  	
  By:

  	
  /s/ Hans F. Mayer

  
	
   

  	
   

  	
  Hans F. Mayer

  
	
   

  	
   

  	
  Executive Director

  
	
   

  	
   

  	
   

  
	
  WITNESS/ATTEST:

  	
  SUBTENANT:

  
	
   

  	
  OSIRIS THERAPEUTICS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/
  Illegible

  	
  By:

  	
  /s/ James S. Burns

  
	
   

  	
   

  	
  James S. Burns

  
	
   

  	
   

  	
  President and Chief

  Executive Officer

  

 

STATE OF MARYLAND, CITY/COUNTY OF   Baltimore 
, TO WIT:

 

I HEREBY CERTIFY, that on this 6 day of June,
1998, before me, the undersigned, a Notary Public of the State of Maryland,
personally appeared Hans F. Mayer, who acknowledged himself to be the Executive
Director of Maryland Economic Development Corporation, a body politic and
corporate and constituted as a public instrumentality of the State of Maryland,
known to me (or satisfactorily proven) to be the person whose name is
subscribed to the within instrument, and acknowledged that he executed the same
for the purposes therein contained as the duly authorized Executive Director of
said entity by signing the name of the entity by himself as Executive Director.

 

AS WITNESS my hand and notarial seal.

	
   

  	
   

  
	
   

  	
  /s/ Charlotte B. Trainor

  
	
  Notary Public

  	
   

  

My Commission Expires:  3/1/99

 

19

 

STATE OF MARYLAND, CITY/COUNTY OF   Baltimore 
 TO WIT:

 

I HEREBY CERTIFY, that on this 2 day on July
1998, before me, the undersigned Notary Public of said State, personally
appeared James S. Burns, who acknowledged himself to be the President and Chief
Executive Officer of Osiris Therapeutics, Inc., a Delaware corporation, known
to me (or satisfactorily proven) to be the person whose name is subscribed to
the within instrument, and acknowledged that he executed the same for the
purposes therein contained as the duly authorized President and Chief Executive
Officer of said corporation by signing the name of the corporation by himself
as President and Chief Executive Officer.

 

AS WITNESS my hand and Notarial Seal.

 

 

	
   

  	
  /s/ Dana M. Woods

  
	
   

  	
  Notary Public

  

 

My Commission Expires:  7/19/99

 

20

 

EXHIBIT A

MASTER LEASE

 

21

 

EXHIBIT A-1

 

22

 

EXHIBIT A-2

 

23

 

EXHIBIT A-3

 

24

October 27, 1998

Maryland Economic Development Corporation

36 South Charles Street

Suite 2410

Baltimore, MD  21201

Re:          Second Amended and Restated Sublease
Agreement

dated as of June 30, 1998, between Maryland Economic

Development Corporation and Osiris Therapeutics, Inc.

covering a portion of the building known as

2001 Aliceanna Street, Baltimore, MD (the “Sublease”)

Gentlemen:

Reference is hereby made to
the Sublease.

This letter will confirm
that (a) the reference in the last sentence of the third paragraph of
Section 3 of the Sublease to “22%” should read “21⁄2%” and (b) the reference
in the last sentence of Section 5 of the Sublease to “92%” should read “91⁄2%”.

Please confirm the foregoing
by signing and returning to the undersigned the enclosed duplicate originals of
this letter.

	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  OSIRIS
  THERAPEUTICS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  James S. Burns

  
	
   

  	
   

  	
  Name:

  	
  James
  S. Burns

  
	
   

  	
   

  	
  Title:

  	
  President
  & CEO

  

 

CONFIRMED:

MARYLAND ECONOMIC DEVELOPMENT

CORPORATION

 

	
  By:

  	
  /s/ Hans F. Mayer

  	
   

  
	
   

  	
  Name:

  	
  Hans F. Mayer

  	
   

  
	
   

  	
  Title:

  	
  Executive DirectorExhibit
10.25

LEASE AGREEMENT

to be entered into

between

GATEWAY S-8 LLLP

and

and NOVA TELECOMMUNICATIONS, INC.

 

	
  1.

  	
  Leased Premises.

  	
  1

  
	
  2.

  	
  Term

  	
  3

  
	
  3.

  	
  Use

  	
  4

  
	
  4.

  	
  Basic Annual Rent

  	
  5

  
	
   

  	
  4.1.

  	
  Definitions

  	
  5

  
	
   

  	
  4.2.

  	
  Rent Adjustment —Common
  Area Expenses

  	
  7

  
	
   

  	
  4.3.

  	
  Rent Adjustment — Taxes

  	
  8

  
	
   

  	
  4.4.

  	
  Utilities

  	
  9

  
	
   

  	
  4.5.

  	
  Payments

  	
  9

  
	
  5.

  	
  Requirements of Law

  	
  9

  
	
  6.

  	
  Tenant’s Improvements.

  	
  10

  
	
  7.

  	
  Condition of Premises.

  	
  11

  
	
  8.

  	
  Conduct on Premises

  	
  13

  
	
  9.

  	
  Insurance

  	
  13

  
	
  10.

  	
  Mechanics’ and
  Materialmen’s Liens and Other Liens

  	
  13

  
	
  11.

  	
  Tenant’s Failure to
  Perform

  	
  13

  
	
  12.

  	
  Loss, Damage, Injury

  	
  14

  
	
  13.

  	
  Destruction—Fire or Other
  Casualty

  	
  14

  
	
  14.

  	
  Eminent Domain

  	
  14

  
	
  15.

  	
  Assignment

  	
  15

  
	
  16.

  	
  Defaults.

  	
  16

  
	
  17.

  	
  Acceptance of Leased
  Premises

  	
  18

  

 

i

 

	
  18.

  	
  Access to Premises and
  Change in Services

  	
  18

  
	
  19.

  	
  Estoppel Certificates

  	
  18

  
	
  20.

  	
  Subordination

  	
  18

  
	
  21.

  	
  Attornment

  	
  19

  
	
  22.

  	
  Notices

  	
  19

  
	
  23.

  	
  Landlord’s Liability

  	
  19

  
	
  24.

  	
  Separability,
  Enforceability

  	
  19

  
	
  25.

  	
  Captions

  	
  20

  
	
  26.

  	
  Recordation

  	
  20

  
	
  27.

  	
  Successors and Assigns

  	
  20

  
	
  28.

  	
  Waiver of Jury Trial

  	
  20

  
	
  29.

  	
  Miscellaneous.

  	
  20

  
	
  30.

  	
  Environmental Assurances.

  	
  22

  
	
   

  	
  (a)

  	
  Covenants

  	
  22

  
	
   

  	
  (b)

  	
  Indemnification

  	
  23

  
	
   

  	
  (c)

  	
  Indemnification by
  Landlord

  	
  23

  
	
   

  	
  (d)

  	
  Definitions

  	
  23

  
	
  31.

  	
  Lender’s Requirements

  	
  23

  
	
  32.

  	
  Authority

  	
  24

  
	
  33.

  	
  Force Majeure

  	
  24

  
	
  34.

  	
  Real Estate Broker

  	
  24

  
	
  35.

  	
  Security Letter of Credit

  	
  24

  
	
  36.

  	
  Holding Over

  	
  25

  
	
  37.

  	
  Net Lease

  	
  25

  
	
  38.

  	
  Contingency

  	
  25

  
	
  RIDER NO. 1 — First Cancellation Option

  	
  28

  

 

ii

 

	
  RIDER NO. 2 — Second Cancellation Option

  	
  30

  
	
  RIDER NO. 3 — Renewal Option

  	
  31

  
	
  RIDER NO. 4 — Common Area Expense Exclusions

  	
  32

  
	
  RIDER NO. 5 — 8320 Guilford Road Premises

  	
  33

  

 

	
  Exhibit
  A

  	
   

  	
  —  Leased
  Premises

  
	
  Exhibit
  B

  	
   

  	
  —  Base
  Building Specifications

  
	
  Exhibit
  C

  	
   

  	
  —  Lease
  Commencement Agreement

  
	
  Exhibit
  D

  	
   

  	
  —  Rules
  and Regulations

  
	
  Exhibit
  E

  	
   

  	
  —  HVAC
  System Service Contract Specifications

  
	
  Exhibit
  F

  	
   

  	
  —  Tenant
  Responsibilities

  
	
  Exhibit
  G

  	
   

  	
  —  Form
  of Lien Waiver

  

 

iii

 

LEASE AGREEMENT

THIS
AGREEMENT OF LEASE is made this _______ day of July, 1998, by and between
Gateway S-8 LLLP, a limited liability limited partnership formed under the laws
of the State of Maryland hereinafter referred to as “Landlord”), and NOVA
TELECOMMUNICATIONS, INC., a Delaware corporation (hereinafter referred to as “Tenant”).

WITNESSETH,
that the parties hereby covenant, promise and agree as follows:

1.             Leased Premises.

(a)           Landlord is the developer of a
building (the “Building”) to be constructed on land known as Parcel S-8 (the “Land”)
in the Columbia Gateway Park (the “Park”) located in Howard County, Maryland
(the “County”), which Building will contain approximately 60,000 square feet,
as more particularly described on Exhibit A attached hereto incorporated by
reference herein and initialed by the parties. 
The Land, the Building, the easements and rights appurtenant  thereto (including  those established by certain declarations of
covenants recorded, or intended to be recorded, prior hereto among the Land
Records of the County), and the sidewalks, areaways, parking areas, driveways,
loading areas, gardens and lawns surrounding the Building and located on the
Land are collectively hereinafter called “Leased Premises.”  Landlord does hereby lease unto Tenant, and
Tenant does hereby rent from Landlord, the Leased Premises for the “Lease Term”
(as hereinafter defined).

(b)           Landlord will construct the base
shell of the Building (the “Base Building”) in accordance with (i) plans
(the “Base Building Plans”) to be prepared by Banta Campbell Architects (“Landlord’s
Architect”) and approved by Landlord and Tenant and (ii) specifications
(the “Base Building Specifications”) attached hereto as Exhibit B and made a
part hereof.  Tenant’s approval of the
Base Building Plans shall not be unreasonably withheld, conditioned or delayed
by more than five (5) business days after the same are submitted to Tenant for
its approval.  Tenant’s failure to notify
Landlord of its approval or disapproval (stating with specificity the basis of
such disapproval) within said 5 business day period shall be deemed a failure
of Tenant to meet a “Tenant Deadline” pursuant 
to Section 2 below.  The cost of
constructing the Base Building in accordance with the Base Building Plans and
Specifications will be paid by Landlord. 
All charges and expenses, which shall be deemed additional rent,
incurred for change orders from the Base Building Plans and Specifications
which increase the cost thereof shall be paid by Tenant to Landlord in
accordance with such written change order or, if reducing the overall cost, an
applicable allowance toward other change orders shall be credited.  Landlord shall have no obligation to
implement any change order unless it is in writing  and specifies the method and time of
payment.  All change orders shall specify
in reasonable detail the changes to be effected and whether such change is
expected to affect the estimated commencement date.  Landlord shall promptly advise Tenant if,
given the stage of construction, the proposed alterations cannot reasonably be
incorporated into the construction process and Landlord shall have no
obligation to implement any such changes.

(c)           Tenant shall hire an architect
reasonably acceptable to Landlord (that is, such architect shall be reputable
and have experience in preparing similar plans) to

 

 

prepare plans and
specifications for the finishing of the Leased Premises (the “TI Plans”).  The TI Plans shall be subject to the prior
written approval of Landlord and Landlord’s Architect, which approval shall not
be unreasonably withheld, conditioned, or delayed.  Such approval must be obtained prior to
Tenant submitting the same to the applicable governmental authorities of the
County for approval.  Tenant shall hire a
qualified general contractor approved by Landlord (the “Contractor”), which
approval shall not be unreasonably withheld, conditioned, or delayed, and
qualified finish subcontractors approved by Landlord (the “Subcontractors”),
which approval shall not be unreasonably withheld, conditioned, or delayed, to
finish the Leased Premises in accordance with the TI Plans.  The construction of the tenant improvements
will be competitively bid by not fewer than three general contractors, one of
which will be Manekin Corporation.  If
Tenant elects to use a general contractor other than Manekin Corporation, then
Landlord and/or Manekin Corporation shall review the finishing of the Leased
Premises for which review Tenant shall pay to Landlord, or if so designated by
Landlord, to Manekin Corporation, a fee (the “Fee”) equal to $.50 multiplied by
the “Rentable Area of the Leased Premises”, as hereinafter defined.

(d)           Landlord agrees to pay Twenty Dollars
($20.00) multiplied by the Rentable Area of the Leased Premises (“Landlord’s
Contribution”) towards the cost of the tenant improvements as hereafter
provided.  Alternatively, a portion of
Landlord’s Contribution may be applied, at Tenant’s option, toward the cost of
Tenant’s moving expenses, as well as toward the cost of interior design
drawings and consulting engineers for the Leased Premises.  Landlord’s Contribution shall be paid to
Tenant or directly to Tenant’s contractors and subcontractors thirty (30) days
after the date Tenant provides Landlord with detailed invoices for all such
charges or expenses, together with final lien waivers from all such contractors
and subcontractors.  Lien waivers shall
be in substantially the form attached hereto as Exhibit G.  Unless sooner paid by Tenant to Landlord, the
Fee shall be due (and may be deducted from) simultaneously with the payment of
Landlord’s Contribution.  Except as above
provided with respect to Landlord’s Contribution and below with respect to the
Additional Contribution, all costs incurred for the finishing of the Leased
Premises shall be borne by Tenant and Tenant shall indemnify and hold Landlord
harmless from same.  Tenant agrees that
Tenant shall bear full responsibility for the TI Plans and the Leased Premises
as improved by the TI Plans, as being in compliance with all applicable
requirements of law, including without limitation, the Americans With
Disabilities Act, as amended.  Tenant
releases Landlord from any claim by Tenant arising out of the failure of the
Leased Premises to be in compliance with all applicable requirements of law,
except as such claim relates to the construction of the Base Building and other
site work by Landlord in accordance with the Base Building Specifications.

(e)           In the event that all or any portion
of Landlord’s Contribution is not utilized by or on behalf of Tenant by the
Rent Commencement Date, then the per square foot Basic Annual Rent set forth in
Section 4 below shall be decreased by eleven cents ($0.11) for every one dollar
($1.00) per square foot of Landlord’s Contribution which is not utilized.  By way of example, if $15.00 per square foot
of Landlord’s Contribution is utilized by the Rent Commencement Date, then the
Basic Annual Rent for the first year of the Lease Term, as hereafter defined,
shall be $10.95 per square foot, calculated as follows:  $20.00 - $15.00 = $5.00 x $0.11 = $0.55.  Subtract $0.55 from the Basic Annual Rent of
$11.50 per square foot, resulting in a Basic Annual Rent of $10.95 per square
foot.  As and to the extent that Landlord’s
Contribution is subsequently utilized by Tenant, the Basic Annual Rent shall be
adjusted

 

2

 

accordingly.  All adjustments to the Basic Annual Rent
shall be confirmed in the Lease Commencement Agreement, described below, or
other writings between Landlord and Tenant, and Tenant agrees to execute same
upon Landlord’s request.

(f)            In addition to Landlord’s
Contribution, Landlord will contribute, at Tenant’s sole option, an additional
amount of up to $20.00 multiplied by the Rentable Area of the Leased Premises
(the “Additional Contribution”) toward the construction of the tenant
improvements.  The Additional
Contribution shall be paid to Tenant or directly to Tenant’s contractors and
subcontractors thirty (30) days after the date Tenant provides Landlord with
detailed invoices for all such charges and expenses, together with final lien
waivers, in the form attached as Exhibit F, from all such contractors and
subcontractors.  The Additional
Contribution shall be repaid by Tenant to Landlord, as additional rent, in
equal monthly installments over the Lease Term, with interest at the rate of
ten percent (10%) per annum, which installments shall be paid at the same time
and in the same manner as Tenant’s monthly payments of Basic Annual Rent
pursuant to Section 4 below.  The amount
of the Additional Contribution utilized by or on behalf of Tenant, and the
additional rent payable by Tenant with respect thereto, shall be confirmed in
the Lease Commencement Agreement.

(g)           Notwithstanding the foregoing, in no
event shall Landlord’s Contribution or the Additional Contribution be paid to
or on behalf of Tenant until Tenant either waives its first cancellation option
(as described in Rider 1 below), or provides adequate security (such as a
letter of credit or a cash deposit equal to such amounts as are paid by
Landlord) to Landlord for the repayment of Landlord’s Contribution and the
Additional Contribution.  Until such
time, Tenant covenants to timely pay all its contractors and subcontractors.

2.             Term.  This Lease shall be for a term of
approximately ten (10) years and two (2) months (the “Lease Term”) commencing
on the Commencement Date (as hereinafter defined) and terminating at 11:59 p.m.
of the last day of the tenth full consecutive lease year after the Rent
Commencement Date, unless otherwise extended or terminated in accordance with
the provisions hereof.  See Rider No. 1 -
Pre-Occupancy Cancellation Option, Rider No. 2 - Second Cancellation Option,
and Rider No. 3 - Renewal Option.

Each
respective period of twelve (12) successive calendar months during the Lease
Term or any renewals thereof shall be hereinafter referred to as the “lease
year”; provided, however, the first lease year shall commence on the
Commencement Date and shall terminate on the last day of the twelfth full calendar
month following  the Rent Commencement
Date.

The
“Commencement Date” shall be that date on which the work to be done by Landlord
in accordance with Section 1(b) of this Lease shall have been substantially
completed (which shall be deemed to have occurred when all county inspections
or other actions by such governmental entities which are required prior to
Tenant’s taking possession of the Base Building for purposes of commencing its
tenant improvements shall have been taken or occurred, except for punch-list
items scheduled by Landlord and Tenant). 
All items on the punchlist shall be promptly completed by Landlord.  Landlord estimates that the Commencement Date
will be approximately February 24, 1999, so long as Tenant meets each of the
deadlines set forth on Exhibit F (the “Tenant Deadlines”) attached hereto and
made a part hereof.  February 24, 1999

 

3

 

shall be hereinafter referred to as the “estimated commencement date.”  In the event that Tenant fails to meet any of
the Tenant Deadlines, then the estimated commencement date of February 24, 1999
shall be postponed by one (1) day for each day that Tenant delays in meeting a
deadline.  Landlord agrees to use its
reasonable efforts to cause the Commencement Date to occur by the estimated
commencement date, subject however to force majeure factors.

In
the event that Landlord shall be unable, by reason of construction delays or
otherwise, to substantially complete construction of the Base Building by the
estimated commencement date (as postponed above for any Tenant delay), then
this Lease shall nevertheless continue in full force and effect, and Tenant
shall have no right to rescind, cancel or terminate the same if Landlord
substantially completes such construction within ninety (90) days thereafter;
provided, however, that in such event the date on which Landlord substantially
completes construction of the Base Building shall thereafter be deemed the
Commencement Date for all purposes of this Lease.  If Landlord is unable to substantially
complete the Base Building as a result of causes within Landlord’s reasonable
control within said 90-day period, then, provided Tenant is not in default of
its obligations hereunder and provided it gives notification to Landlord on or
before the 95th day after the estimated commencement date and
Landlord has not substantially completed the Base Building by the time of such
notice, Tenant shall have the option to terminate this Lease.  In such event the Cancellation Letter of Credit
and the Security Letter of Credit, if previously delivered to Landlord, shall
be returned to Tenant within five business days after receipt by Landlord of
Tenant’s termination notice and neither party shall thereafter have any
obligations to one another arising hereunder. 
Whether or not Landlord shall substantially complete such construction
on the estimated commencement date (as postponed above for any Tenant delay),
or within such additional ninety day period, Tenant agrees that in no event
shall Landlord be liable for damages, if any, sustained by Tenant as a result
of Landlord’s failure.

On
the Commencement Date or such later date as Landlord may request, Tenant shall
promptly enter into a supplementary written agreement (the “Lease Commencement
Agreement”) in substantially the form attached hereto as “Exhibit C”, or in
such other form as Landlord shall prescribe, thereby specifying, among other
matters, the Commencement Date, the Rent Commencement Date, the date as of
which the Lease Term shall end, the amount of Basic Annual Rent payable by
Tenant hereunder (as adjusted pursuant to Section 1(e) above), and any
additional rent payable by Tenant pursuant to Section 1(f) above.

3.             Use.  Landlord and Tenant expressly agree that the
Leased Premises shall be used or occupied by Tenant as an office warehouse for
the following purposes and none other: 
As a research, development, administrative and manufacturing operation
for the production of telecommunications equipment.

The
Real Property is subject to certain covenants and restrictions (the “Restrictions”),
a copy of which has been provided to Tenant. 
Tenant acknowledges that it is cognizant of the terms and provisions of
the Restrictions and agrees to be bound by them.  Landlord and Tenant agree that The Howard
Research And Development Corporation is a third party beneficiary to the
covenants and representations herein made by Tenant and may remedy any
violation of the Restrictions occasioned by Tenant’s use and occupancy of the
Leased

 

4

 

Premises, in the manner and to the extent provided in the Restrictions,
including, but not limited to, bringing suit, at law or in equity, directly
against Tenant.

4.             Basic Annual Rent.  Commencing on the earlier of (i) sixty
(60) days after the Commencement Date (which 60-day period is hereinafter
referred to as the “Fit-Up Period”) or (ii) the date Tenant commences
operating its business in the Building (such earlier date being herein the “Rent
Commencement Date”), Tenant shall pay to Landlord during the Lease Term “Basic
Annual Rent” payable in equal monthly installments as set forth below without
any deductions, recoupments, or set-offs, and without demand, in advance on the
first day of each and every calendar month in each lease year during the Lease
Term; provided, however, that if the Lease Term shall commence on a day other
than the first day of a month, Tenant shall pay on the Rent Commencement Date
for the fractional part of a month at the beginning of the term, a prorated
amount of one month’s rent. 
Notwithstanding the foregoing, in the event that Tenant occupies only a
portion of the Building during the Fit-Up Period, then Tenant shall pay to
Landlord, for the balance of the Fit-Up Period only, a percentage of the Basic
Annual Rent and Additional Rent otherwise payable by Tenant during such period,
which percentage shall be equal to the percentage of the Building occupied by
Tenant during such period.  In any event,
upon the expiration of the Fit-Up Period, Tenant shall be obligated to commence
payment of Basic Annual Rent and Additional Rent in their full amounts.

Subject
to adjustment pursuant to Sections 1(d) and 1(e) above and Rider No. 4 below,
the Basic Annual Rent for each year of the original term shall be determined by
multiplying the Rentable Area of Leased Premises, as hereinafter defined, by
the following amounts:

	
  1st
  lease year

  	
  $11.50

  
	
  2nd
  lease year

  	
  $11.50

  
	
  3rd
  lease year

  	
  $11.50

  
	
  4th
  lease year

  	
  $12.34

  
	
  5th
  lease year

  	
  $12.34

  
	
  6th
  lease year

  	
  $12.34

  
	
  7th
  lease year

  	
  $13.25

  
	
  8th
  lease year

  	
  $13.25

  
	
  9th
  lease year

  	
  $13.25

  
	
  10th
  lease year

  	
  $13.25

  

 

The
Basic Annual Rent shall be confirmed in the Lease Commencement Agreement.

4.1.          Definitions.  For purposes of this Lease, the following
meanings or definitions shall apply:

(a)           “Rentable Area of the Leased Premises”
shall, for all purposes of this Lease, be deemed to be the square footage of
the Building as determined by Landlord’s architect utilizing the now current
BOMA standard for a single tenant building in use in the Columbia, Maryland
area, which square footage shall be determined by the Rent Commencement Date.

 

5

 

(b)           The term “Common Area Expenses” shall
mean all expenses paid or incurred by Landlord in connection with Landlord’s
management of the Real Property, and the management, maintenance, operation and
repair of the exterior areas of the Real Property, including, but not limited
to, (i) keeping the driveways, parking areas, sidewalks and steps free and
clear of ice, snow and debris and maintaining same; (ii) maintaining all
grass and landscaping on the Real Property; (iii) repair of normal wear
and tear of the roof and caulking and exterior maintenance of the Building
(including exterior window cleaning); (iv) trash removal from dumpsters on
the Real Property, if any and pickup for paper recycling if Tenant chooses to
have a recycling program in the Building; (v) monitoring and repairing of
water and sewer infrastructure to the point such utilities enter the Building,
and exterior electrical utilities; (vi) management fees; (vii) the
cost  of 
Insurance, as defined below; (viii) exterior extermination;
(ix) the cost of any capital improvement (amortized or depreciated over
such reasonable period as Landlord shall determine together with the interest
at a fluctuating rate per annum which is at all times equal to 1-1/2% over the
prime interest rate as determined from time to time by Citibank, N.A. on the
unamortized balance) made to the Building by Landlord which results in a
reduction in the cost of operating the Building or made to the Building by
Landlord after the Commencement Date of this Lease that is required under
governmental law or regulation that was not applicable to the Building at the
time it was constructed; (x) the HVAC Expense, as defined below; and
(xi) the Real Property’s pro rata share, as reasonably determined by
Landlord, of Landlord’s costs associated with the fitness room in the Columbia
Gateway Park so long as same is available to Tenant and its employees.  See Rider No. 4-Common Area Expenses
Exclusions.

(c)           The term “HVAC Expense” shall mean
the total costs and expenses incurred by Landlord in maintaining a service
contract on the heating, ventilation and air conditioning systems servicing the
Leased Premises (the “HVAC System”).

(d)           “Taxes” shall mean any present or
future federal, state, municipal, local and/or any other taxes (including gross
receipts or business license taxes), assessments, levies, benefit charges
and/or other governmental or private impositions (including business park
charges and dues), levied, assessed and/or agreed to be imposed upon the Real
Property of which the Leased Premises are a part or any part or parts of said
Real Property, or upon the rent due and payable hereunder, whether or not now
customary or within the contemplation of the parties hereto and regardless of
whether the same shall be extraordinary or ordinary, general or special,
foreseen or unforeseen, or similar to any of the foregoing but shall not include
any inheritance, estate, succession, income, excise, capital, profits or
franchise tax, provided, however, if at any time during the Lease Term or any
extension thereof the method of taxation prevailing at the commencement of the
term shall be altered or eliminated so as to cause the whole or any part of the
items listed in the first sentence of this subsection (d) to be replaced by a
levy, assessment or imposition, wholly or partly as a capital levy, or
otherwise, on the rents or income (provided the tax on such income is not a tax
levied on taxable income generally) received from the Real Property, wholly or
partly in place of an imposition on or as a substitute for, or an in place of,
taxes in the nature of real estate taxes issued against the Real Property, then
the charge to Landlord resulting from such altered or replacement method of
taxation shall be deemed to be within the definition of “Taxes.”  All reasonable expenses incurred by Landlord
(including attorneys’ fees and costs) in monitoring or contesting any increase
in the assessment

 

6

 

of the Real Property shall
be included as an item of Taxes for the purpose of computing additional rent
due hereunder.

(e)           “Real Property” shall mean the Land, the
Building, and all fixtures, equipment and other improvements in or upon said
Land, which have been provided by Landlord and shall include the sidewalks,
areaways, parking areas, loading areas, gardens and lawns of the Leased
Premises.  Notwithstanding any language
in this Lease to the contrary, Tenant hereby acknowledges that the current lot
lines of Parcel S-8, which comprises the Land, are intended to be modified by
Landlord pursuant to the filing of a resubdivision plat with the County, so
that its lot lines will be substantially as shown on Exhibit A.  The purpose of the resubdivision is to create
additional parking areas for Tenant, as shown on Exhibit A.  Tenant hereby consents to any minor changes
in the lot lines from that shown on Exhibit A in connection with such
resubdivision process, as determined by Landlord in its reasonable discretion.

(f)            “Insurance” shall mean all insurance
of whatsoever nature kept or caused to be kept by Landlord, or required by
Landlord’s lender to be kept, out of or in connection with Landlord’s ownership
of the Building and/or the Real Property, or the equipment, fixtures and other
improvements installed and/or owned by Landlord and used in connection with the
Building and/or the Real Property and/or all alterations, rebuildings,
replacements and additions thereto, insuring the same against loss or damage by
fire, vandalism, malicious mischief, sprinkler leakage (if sprinklered) and
such other hazards, casualties, risks and contingencies now covered by or that
may hereafter be considered as included within, the standard casualty insurance
policy, or such other casualties as Landlord’s lender may require.  Insurance shall include insurance for loss of
rent arising out of any of the occurrences covered by such insurance.  Such casualty insurance shall be carried in an
amount at least equal to the Full Insurable Value thereof.  The term “Full Insurable Value” shall mean
actual replacement costs of the Building (exclusive of the costs of excavation,
foundations and footings below the lowest basement floor), or such other
amounts as may be required by Landlord’s lender.

(g)           “Term” or “Lease Term” shall mean the
initial lease term and any renewals or extensions  thereof.

(h)           “Deed of Trust” shall mean the deed
of trust or mortgage securing Landlord’s original, interim, and/or permanent
financing for the Leased Premises.

4.2.          Rent Adjustment Common Area
Expenses.  Commencing on the Rent
Commencement Date, Tenant agrees to pay to Landlord, as additional rent, with
and at the same time as the payments of Basic Annual Rent, Seven Thousand Six
Hundred Dollars ($7,600.00) per month as one-twelfth of the estimated Common
Area Expenses (calculated on the basis of $1.52 multiplied by the estimated
square footage of 60,000 square feet.

At
any time during a Lease Year, Landlord may revise its estimate of the Common
Area Expenses (the “Expenses”) as set forth above and adjust Tenant’s monthly
installments to reflect the revised estimates. 
Landlord will give Tenant prior written notice of the revised estimates
and the amount by which Tenant’s monthly installments will be adjusted, and
Tenant will pay the adjusted installments with each payment of the rent,
beginning with the first

 

7

 

payment of the Basic Annual Rent to come due after Tenant’s receipt of
such notice, provided however that no such revision may result in an increase
in Common Area Expenses which are within the reasonable control of Landlord by
more than five percent (5%) in any given year after the first lease year; and
provided further that if the actual Common Area Expenses which are within the
reasonable control of Landlord for the first (1st) lease year exceed
the estimate for such Common Area Expenses for such year by more than ten
percent (10%), Landlord shall be responsible for said excess.

Landlord
will deliver to Tenant, within one hundred twenty (120) days (or such longer
time as is reasonable under the circumstances) after the end of each applicable
Operating Year for the Expenses, a statement for such Operating Year (the “Statement”),
showing such Expenses.  Tenant will pay
Landlord within thirty (30) days of the receipt of the Statement such amounts
as may be necessary to adjust Tenant’s estimated payments for such preceding
Operating Year so that such payments will equal the actual Expenses for such
Operating Year.  If the actual amount of
the Expenses is less than the amounts paid by Tenant as installments, then
Landlord will credit Tenant’s account by the amount of the excess or, if at the
end of the Lease Term, refund to Tenant the amount of the excess.  Unless Tenant gives Landlord written notice
of its exception to any Statement for such preceding Operating Year within one
hundred eighty (180) days after delivery thereof, the same shall be conclusive
and binding on Tenant; provided, however, that in the event that Tenant shall
give Landlord written notice of its exception to such Statement within such one
hundred eighty (180) day period, Tenant shall nevertheless be obligated to pay
the additional rent.  At Tenant’s sole
cost and expense and without unreasonable interference with Landlord’s business
operations or waiving Tenant’s obligation to pay the amount shown on such
Statement, Tenant shall have the right, upon at least ten (10) business days’
prior written notice given to Landlord within one hundred eighty (180) after
Tenant’s receipt of a Statement, to examine the books, records and other papers
of Landlord used to compute the Expenses reflected on such Statement.  Any such examination shall be conducted only
during Landlord’s regular business hours, and all information examined shall be
kept by Tenant in the strictest confidence. 
Any overpayment by Tenant reflected by such examination shall be
credited to Tenant’s account or, if occurring after the Lease Term has ended,
shall be refunded to Tenant within thirty (30) days after verification of such
amount.

Failure
of Landlord to provide any Statement within the time prescribed will not
relieve Tenant of its obligations under this Section 4.2; provided, however,
that in any event, Tenant may give Landlord written notice of its exception to
any Statement for such preceding Operating Year within one hundred eighty (180)
days after Landlord’s delivery thereof.

4.3.          Rent Adjustment - - Taxes.  Tenant shall pay all Taxes applicable to the
Lease Term.  Such amounts shall be paid
by Tenant, as additional rent, directly to the taxing authority on or before
the date such Taxes are due, and prior to the imposition by the taxing authority
of any late charge or penalty.  Each tax
year, Tenant shall promptly provide evidence to Landlord that Taxes have been
timely paid in full.  Tenant further
acknowledges that Landlord must pay the Taxes for an entire tax year (i.e.,
July 1 - June 30) in advance. 
Therefore, within thirty (30) days after the Rent Commencement Date,
Tenant shall pay to Landlord a sum equal to the pre-paid Taxes paid by Landlord
for the tax year in which the Rent Commencement

 

8

 

Date occurs (the “Commencement Tax Year”), pro-rated from the Rent
Commencement Date to the end of the Commencement Tax Year.  Following termination of the Lease Term by
passage of time or for any reason other than Tenant’s default of this Lease (the
“Termination Date”), Tenant shall be reimbursed by Landlord to the extent of
Taxes which it has pre-paid as of such Termination Date for the period beyond
such Termination Date.  By way of example
of Tenant’s obligations hereunder, if the Rent Commencement Date occurs on
April 24, 1998, then within thirty (30) days thereafter, Tenant shall pay
to Landlord the Taxes attributable to the period April 24, 1998 - June 30,
1998.  On July 1, 1998, Tenant shall
receive a tax bill for the period July 1, 1998 - June 30, 1999, which
shall be payable by Tenant prior to the imposition of any late charge or
penalty.  On July 1 of each lease
year thereafter, Tenant shall receive a tax bill for each succeeding tax year
which shall be payable by Tenant in accordance with the terms set forth above.

4.4.          Utilities.  From and after the Commencement Date, Tenant
shall pay on a timely basis to the appropriate utility or other supplier, all
charges for gas, steam, electricity, light, heat, power, telephone, water,
metered or unmetered sprinkler, sewerage and all other utility and
communication services, used, rendered and/or supplied upon or in connection
with the Leased Premises, to the extent not paid by Tenant as a part of the
Common Area Expenses.  Upon request,
Tenant shall promptly furnish Landlord with copies of all paid receipts for
such utilities charges.  All such utility
charges shall be appropriately adjusted between the parties as of the
Commencement Date and the expiration or sooner termination of this Lease.

4.5.          Payments.  All payments or installments of any rent
hereunder other than Basic Annual Rent and all sums whatsoever due under this
Lease (including reasonable attorneys’ fees) shall be deemed additional rent
and shall be paid to Landlord at the address designated for notice to Landlord
herein, or as otherwise designated by Landlord, and if any installment of Basic
Annual Rent or additional rent is not paid within 10 days of the date when due,
it shall bear a late charge equal to $300 for each day such sum is more than
five (5) days in arrears in consideration of Landlord’s additional expense
caused by such failure to pay and shall be payable without demand
simultaneously with the rent arrearage. 
Time is of the essence in this Lease with respect to Tenant’s monetary
obligations hereunder.  Although the
payments provided by Section 4.2. hereof are measured and determined by the
amount of Taxes, said payments are, and shall be deemed to be, additional rent.  Unless otherwise provided, any such
additional rent shall be due within thirty (30) days after the Landlord has
submitted a written statement to Tenant showing the amount due.  Such obligations shall survive the expiration
or sooner termination of this Lease.  Any
such statements shall be accompanied by a copy of the bill or other invoice for
such charge .

5.             Requirements of Law.  Tenant shall, at the sole cost and expense of
Tenant, observe and comply with all laws, requirements, rules, orders,
ordinances and regulations of any governmental, quasi-governmental entity or of
the local Board of Fire Underwriters applicable to the Leased Premises or any
portion(s) thereof.  Tenant shall comply
with Landlord’s rules and regulations for the Park, a copy of which is attached
hereto as Exhibit D, as the same may be amended, modified or supplemented from
time to time by Landlord.

 

9

 

6.             Tenant’s Improvements.

(a)           Tenant agrees that it will not
undertake any structural alterations of any of the improvements, or any part
thereof, now or hereafter erected upon the Leased Premises, or construct any
new structures or improvements upon the Leased Premises or make any other
alterations which would materially change the character of the existing
improvements or which would weaken or impair the structural integrity or lessen
the value of the existing improvements, without the prior written consent of
Landlord, which consent of Landlord may be withheld in Landlord’s reasonable
discretion, and shall not be delayed by more than ten (10) business days after
Tenant’s written request therefor, which request shall state with particularity
the proposed work which is the subject of such request.  Tenant shall give Landlord notice of any
alteration, addition, enlargement or improvement and copies of plans and
specifications therefor prior to commencing any work thereon.

(b)           Subject to the limitation contained
in the foregoing Section 6(a), Tenant may, at any time during the term of this
Lease, at Tenant’s own cost and expense make or permit to be made any
alteration, change or addition of, in, or to the Leased Premises or any part
thereof or any building or improvement which may hereafter be erected thereon,
subject, however, to the following conditions, each of which must be fully
observed and performed by Tenant before the commencement of any work
whatsoever:

(i)            That there is no
existing and unremedied default on the part of Tenant, of which Tenant has
received notice, under the terms, covenants and conditions herein on the part
of Tenant to be observed and performed.

(ii)           That Tenant shall
covenant that the same shall be performed with diligence and in a first-class,
workmanlike manner.

(iii)          That neither the
interest of the Landlord nor the interest of the holder of the Deed of Trust
nor the Leased Premises nor any building in or improvement on, under, or above
the Leased Premises shall then be the subject of any charge, liability, claim,
or lien of whatsoever kind or nature by reason of work undertaken by Tenant.

(iv)          That if under the
provisions of any insurance policies required to be provided and maintained
hereunder, any consent to any alteration, change or addition by the insurers
therein shall be required to continue and keep such policies in full force and
effect, Tenant shall obtain such consents and pay any premiums or charges that
may be incurred therefor.

(v)           Tenant shall
covenant that in the alteration of the then existing structures and/or the
construction of any new building, it will comply with all applicable
requirements of the Building Code of the County and with all other applicable
laws, ordinances, rules and regulations of all governmental authorities having
jurisdiction thereof and of the local Board of Fire Underwriters or of any
similar body.

(vi)          Tenant shall procure
all necessary permits for the alteration of the then existing structures and
for the construction of the new improvements and shall

 

10

 

deliver
to Landlord a certificate of occupancy when required by law, as a condition
precedent to the use of the improvements for their designated purpose.  Upon completion of any new structural
improvements, Tenant shall deliver to Landlord a set of the “as built” plans.

(vii)         All such work shall
be done, at Tenant’s option, by Landlord or by contractors approved by
Landlord, which approval shall not be unreasonably withheld conditioned or
delayed.  Notwithstanding the foregoing,
Tenant understands that, in the event the work is not performed by Landlord or
its agents, such work shall nevertheless be performed under the general review
of Landlord or its agent to assure standard quality improvements on the Real
Property for which Landlord or such agent shall be paid a fee in accordance
with Section l(c) above.

(c)           All such work, other than movable
furniture or trade fixtures or other items specifically designated at the time
Landlord approves such work, done by Tenant upon the Leased Premises, shall be
the property of the Landlord at the termination of this Lease; provided,
however, that Landlord may require Tenant, only at the time Landlord approves
such work, to remove all or any part of said work at the expiration of this
Lease, in which event such removal shall be done at Tenant’s sole cost and
expense.  Tenant shall, at its sole cost
and expense, repair any damage to the Leased Premises and/or the Building
caused by such removal or by the removal of its personalty.

7.             Condition of Premises.

(a)           Tenant shall at all times during the
Lease Term take good care of and keep the Building’s interior and the
improvements, fixtures, equipment and appurtenances therein (including, but not
limited to, interior walls and windows, interior doors, pipes, plumbing, water
and sewer connections, heating and air conditioning equipment and machinery (except
to the extent covered by the HVAC Expense), and electrical works (except for
primary electric service and site lighting) in good order and condition, free
of debris, and, at Tenant’s sole cost and expense, shall make all necessary
repairs thereto, which repairs shall be in quality and class at least equal to
the original work.  Tenant shall not
commit or suffer any waste of the Leased Premises.

(b)           Landlord will secure and maintain
during the term hereof, and any extension or renewal thereof, a limited parts
and labor service contract on the heating, ventilation and air conditioning
system servicing the Leased Premises (the “HVAC System”), in the form attached
as Exhibit E, the cost of which will be paid by Tenant as the HVAC Expense as
set forth above.  Landlord, at Tenant’s
sole cost and expense, will make all necessary repairs or replacements to the
HVAC System which are not covered under the service contract.  All costs incurred which are set forth in the
exclusions listed in Exhibit E shall be paid for by Tenant except for the cost
of replacing or making any repairs of a capital nature to the compressor or
heat exchanger (the “Shared Expenses”), the cost of which shall be shared
between Tenant and Landlord as described below, provided, however, to the
extent any repairs or replacements are required during the first year of the
Lease Term, which are not covered by the terms of the said contract, subject to
the last sentence hereof, Landlord shall be responsible for such repairs or
replacements.  Tenant will pay that
percentage of the cost of any Shared Expenses which is equal

 

11

 

to the ratio by which the
length of the remaining years of Tenant’s Lease Term (without taking into
consideration any cancellation options not yet exercised by Tenant) bears to
the useful life of such repair or replacement, as determined in accordance with
generally accepted accounting principles; provided, however, in
no event may such percentage be greater than 100%.  (Landlord and Tenant hereby agree that the
useful life of the machinery and equipment comprising the HVAC System shall be
12 years, so long as the HVAC System is properly maintained, Tenant’s use does
not exceed 18 hours per day, 6 days per week, and no corrosive materials are
used by Tenant in any manufacturing operations within the Leased
Premises.)  If any renewal option is
exercised by Tenant, then the length of such renewal term shall be included for
purposes of calculating the remaining years of the Lease Term.  Notwithstanding anything to the contrary in
the preceding sentences, for any Shared Expenses, Tenant shall have the right
to pay its portion thereof by equal payments made in six (6) month intervals
over the then remaining Lease Term. 
Notwithstanding the foregoing, any maintenance or repair to the HVAC
System which is required as a result of any acts or omissions of Tenant, or
Tenant’s agents, employees or visitors, or as a result of Tenant’s use of such
HVAC System in excess of the customary use of 18 hours per day, six days per
week, will be made by Landlord at Tenant’s sole cost and expense.

(c)           At the expiration of the Lease Term,
or at the sooner termination of this Lease as herein provided, Tenant shall
deliver up the Leased Premises in the same good order and condition, reasonable
wear and tear excepted, as at the beginning of the tenancy, broom clean and
(subject to the provisions of the preceding Section hereof) Tenant shall remove
all of its property and/or property maintained and/or stored for or on the
account of others therefrom prior to such termination.  Any items of Tenant’s personalty or any
improvements to the Leased Premises that constitute laboratory equipment
remaining in the Leased Premises after the termination of the Lease shall be deemed
abandoned by Tenant and become the sole property of Landlord; provided,
however, Tenant shall have five (5) business days from the termination of this
Lease to remove any and all laboratory equipment that was affixed to the Leased
Premises.  Notwithstanding the foregoing,
any costs incurred by Landlord in storing and/or disposing of such abandoned
property shall remain the sole obligation of Tenant, which obligation shall
survive the termination of this Lease.

(d)           It is understood that Tenant intends
to “self manage” its obligations within the interior of the Leased Premises (as
set forth above) so as to maintain the Leased Premises in as good a quality and
condition of order and repair as on the Commencement Date, ordinary wear and
tear and insured casualty excepted.  If
Tenant elects, at any time, to seek a third party manager for the Lease
Premises, it shall first seek a proposal from Landlord (or Manekin
Corporation).  In the event Landlord’s or
Manekin’s management proposal is not acceptable to Tenant, Tenant shall obtain
bids for such third party management from at least two other reputable managers
within the Baltimore-Washington corridor which bidders shall be subject to the
prior approval of Landlord, which approval shall not be unreasonably withheld,
conditioned or delayed.  Prior to Tenant’s
acceptance of any such other bid, Tenant shall again submit such bid which it
finds acceptable to Landlord and Manekin Corporation and both shall have a
period of 15 days from the date of submission to match such proposal.  If such proposal is matched by Landlord or
Manekin Corporation, Tenant shall employ Landlord or Manekin Corporation for
such management tasks. Such management contract shall allow Tenant to terminate
same without cause, if Tenant again elects to resume self management of the
Leased

 

12

 

Premises, or if Tenant is
dissatisfied with the performance by such manager of its obligations under the
management contract unless same is cured, to Tenant’s reasonable satisfaction,
by such manager within thirty (30) days after notice from Tenant of the need
for such cure.

(e)           Except as otherwise set forth in this
Lease, Landlord shall not be required to furnish any services or facilities to
the Leased Premises and Landlord shall not be required to rebuild any
improvements on the Leased Premises or to make any repairs, replacements or
renewals of any nature or description to the Leased Premises or any improvement
thereon, whether ordinary or extraordinary, foreseen or unforeseen, or to
maintain the Leased Premises in any way.

8.             Conduct on Premises.  Tenant shall not do, or permit anything to be
done in the Leased Premises, or bring or keep anything therein which will, in
any way, increase the rate of fire or other insurance maintained on the Real
Property by Landlord, or invalidate or conflict with the fire insurance
policies on the Real Property; obstruct or interfere with the rights of
Landlord; or interfere with the good order of the Building.  Tenant agrees that any increase in fire or
other insurance premiums on the Real Property and/or the contents thereof
caused by the use or occupancy of Tenant shall, as they occur or accrue, be
added to the rent heretofore reserved and be paid as a part thereof; and Landlord
shall have all the rights and remedies for the collection of same as are
conferred upon Landlord for the collection of rent provided to be paid pursuant
to the terms of this Lease.

9.             Insurance.  At all times during the Lease Term, Tenant,
at its sole cost and expense, shall provide and keep in full force and effect a
policy of public liability and property damage insurance, naming Landlord and
Manekin Corporation as additional insureds, with respect to the Leased Premises
and the business of Tenant in, on, within, from or connected with the Leased
Premises, pursuant to which the limits of liability shall be at least
$1,000,000.00 in respect to any one occurrence, and at least $2,000,000.00 in
respect to the general aggregate limit of liability, or in such amounts as
Landlord may reasonably require.  Said
insurance policy shall contain a clause that the insurer will not cancel or
change the insurance without first giving Landlord thirty (30) days prior
written notice.  Said insurance policy
shall be carried with an insurance company approved by Landlord, and a
certificate of insurance shall be delivered to Landlord at the inception of
each policy and renewal thereof.

10.           Mechanics’ and Materialmen’s Liens
and Other Liens.  Tenant shall not do
or suffer to be done any act, matter or thing whereby the Leased Premises (or
Tenant’s interest therein) or any part thereof, may be encumbered by any
mechanics’ or materialmen’s lien and/or any other lien or encumbrance.  Tenant shall bond or move to discharge, within
ten (10) days after the date of filing, any mechanics’ or materialmen’s liens
filed against the Leased Premises (or Tenant’s interest therein), or any part
thereof, purporting to be for work or material furnished or to be furnished to
Tenant.

11.           Tenant’s Failure to Perform.  In the event that Tenant shall fail, after
fifteen (15) days written notice from Landlord, to keep the Leased Premises in
the state of condition and repair required by this Lease; to do any act; make
any payment; and/or perform any term or covenant on Tenant’s part required
under this Lease, Landlord may (at its option, but without being required to do
so) immediately, or at any time thereafter and without notice,

 

13

 

perform the same for the account of Tenant (including, but not limited
to, entering upon the Leased Premises to make repairs).  All rights given to Landlord in this Section
shall be in addition to any other right or remedy of Landlord herein contained.

12.           Loss, Damage, Injury.  Landlord and Tenant agree that each will
indemnify and hold harmless the other for all losses, damages, liabilities,
costs, payments, expenses and fines incurred by one party and, as to Landlord,
its agents and managers (the “Indemnitee”) as a result of any claim or action
(whether or not such claim or action proceeds to final judgment) brought or
threatened for any of the following acts or omissions of the other party (the “Indemnitor”),
and/or of the Indemnitor’s servants, employees, agents, licensees or
invitees:  (1) any breach, violation
and/or nonperformance of any covenant or provision of this Lease applicable to
the Indemnitor and/or (2) negligence or any willful misconduct of the
Indemnitor.  This indemnification will
remain in effect after the termination or expiration of this Lease.

13.           Destruction—Fire or Other Casualty.  In the event of partial or total damage or
destruction to the Leased Premises by fire, other casualty, or any other cause
whatsoever, then Tenant shall give immediate notice thereof to Landlord
and:  (a) this Lease shall continue
in full force and effect and (b) Landlord, to the extent that insurance
proceeds respecting such damage or destruction are subject to being utilized
for and, in fact, may be utilized by Landlord therefor, shall thereupon cause
such damage or destruction to property owned by Landlord to be repaired with
reasonable speed at the expense of Landlord, due allowance being made for
reasonable delay which may arise by reason of adjustment of loss under insurance
policies on the part of Landlord and/or Tenant, and for reasonable delay on
account of “labor troubles” or any other cause beyond Landlord’s control, and
to the extent that the Leased Premises are rendered untenantable, the rent
shall proportionately abate.  Landlord
shall commence restoration work within sixty (60) days after the date of such
casualty, or Tenant may terminate this Lease by giving notice to Landlord of
such termination within five (5) days after the expiration of such 60-day
period.

Landlord
shall have no obligation to rebuild the Leased Premises if the reasonably
estimated cost of repair and reconstruction exceeds fifty percent (50%) of the
Full Insurable Value of the Leased Premises unless:  (i) on the date of such destruction
there shall be four (4) or more years remaining in the Lease Term or
(ii) within thirty (30) days of the date of such destruction, Tenant, at
its option, shall enter into an agreement with Landlord to extend the Lease
Term for a period of at least four (4) years from the date of such
destruction.  If Tenant so elects to
extend the Lease Term, Landlord covenants to promptly execute and deliver to
Tenant a written agreement evidencing such extension.  In the event Tenant elects not to so extend
this Lease, Landlord shall have the right to either (i) waive the
extension requirement and rebuild the Leased Premises as set forth above, or
(ii) terminate this Lease by giving notice of such election to Tenant, in
which event Landlord shall be entitled to retain all insurance proceeds.

14.           Eminent Domain.  If the entire Leased Premises shall be
substantially taken (either temporarily or permanently) for public purposes, or
in the event Landlord shall convey or lease the Real Property to any public
authority in settlement of a threat of condemnation or taking, the rent shall
be adjusted to the date of such taking or leasing or conveyance, and this Lease
shall thereupon terminate.  If only a
portion of the Leased Premises

 

14

 

shall be so taken, leased or condemned, and as a result of such partial
taking, Tenant is reasonably able to use the remainder of the Leased Premises
for the purposes intended hereunder, then this Lease shall not terminate but,
effective as of the date of such taking, leasing or condemnation, the rent
hereunder shall be abated in an amount thereof proportionate to the area of the
Leased Premises so taken, leased or condemned. If, following such partial
taking Tenant shall not be reasonably able to use the remainder of the Leased
Premises for the purposes intended hereunder, then this Lease shall terminate
as if the entire Leased Premises had been taken, leased or condemned.  In the event of a taking, leasing or condemnation
as described in this Section, whether or not there is a termination hereunder,
Tenant shall have no claim against Landlord, other than an adjustment of rent,
to the date of taking, leasing or condemnation, and Tenant shall not be
entitled to any portion of any amount that may be awarded as damages or paid as
a result or in settlement of such proceedings or threat.

15.           Assignment.  No Assignment of this Lease (as defined
below) is permitted without the prior written consent of Landlord.  The granting or withholding of such consent
will be given solely within the discretion of Landlord.  Notwithstanding the foregoing, Landlord’s
consent to an Assignment of the types described in clauses (1), (2) and (6) of
the following paragraph shall not be unreasonably withheld, delayed or
conditioned so long as the proposed use is acceptable to Landlord, in each
instance as determined by Landlord in its sole, but reasonable, discretion.

The
foregoing restriction will include, but not be limited to, the following (all
of which will be deemed to be an “Assignment”): 
(1) any assignment of this Lease or a subletting of the Leased
Premises; (2) any permission to a third party to use all or part of the
Leased Premises; (3) any mortgage or other encumbrance of this Lease or of
the Leased Premises; (4) the appointment of a receiver or trustee of any
of the Tenant’s property; (5) any assignment or sale in bankruptcy or
insolvency; and (6) the transfer of majority control of Tenant by any
means, including operation of law, to parties other than those maintaining
majority control on the date on which the last party executes this Lease.

Even
if Landlord consents to an Assignment, Tenant will remain primarily liable
under this Lease.  Also, Tenant will bear
all reasonable legal costs incurred by Landlord in connection with Landlord’s
review of documents concerning an Assignment, whether or not Landlord consents
to it.  Landlord’s consent to a specific
Assignment does not waive Landlord’s right to withhold consent to any future or
additional Assignment.  Tenant will give
Landlord notice of its intention to make an Assignment at least thirty (30)
days prior to such Assignment, which notice will contain such details as
Landlord may reasonably request.  If
Tenant intends to Assign this Lease, Landlord may terminate this Lease by
giving fifteen (15) days prior written notice to Tenant after Landlord has
received written notice from Tenant of an intended Assignment.

If
the amount of rent and other sums received by Tenant under any Assignment is
more than the Rent due from Tenant under this Lease, then Tenant will pay fifty
percent (50%) of the excess (less Tenant’s actual costs of Assignment, such as
commissions and improvements) to Landlord on a monthly basis and promptly upon
Tenant’s receipt of such excess amounts.

 

15

 

If,
without Landlord’s consent, this Lease is Assigned, or if the Leased Premises
are occupied or used by any party other than Tenant, then all resulting
expenses (including reasonable attorneys’ and brokerage fees) incurred by
Landlord will be immediately due and payable by Tenant upon receipt of an
invoice.  If Tenant defaults, Landlord
may collect rent from the assignee, subtenant, occupant or user (the “Assignee”)
of the Leased Premises and apply it towards the Rent due under this Lease.  Such collection will not be deemed an
acceptance of the Assignee as tenant, will not waive or prejudice Landlord’s
right to initiate legal action against Tenant to enforce Tenant’s fulfillment
of its obligations under this Lease and will not release Tenant from such
obligations.

16.           Defaults.

(a)           Each of the following shall be deemed
a material default by Tenant under this Lease and a substantial breach of this
Lease, entitling Landlord to all remedies set forth below or existing at law or
in equity:

(1)           The filing of a petition by or
against Tenant for debtor relief as defined under the Federal Bankruptcy Code,
as now or hereafter amended or supplemented, or for reorganization, arrangement
or other rehabilitation within the meaning of the Bankruptcy Code, or the
commencement of any action or proceeding for the dissolution or liquidation of
Tenant, whether instituted by or against Tenant, or for the appointment of a
receiver or trustee of the property of Tenant; for purposes of this subsection,
the word “Tenant” shall include any guarantor of Tenant’s obligations under
this Lease;

(2)           The making by Tenant of an assignment
for the benefit of creditors;

(3)           The suspension of business by Tenant
or any act by Tenant amounting to a business failure;

(4)           Failure of Tenant to make payment of
the rent herein reserved, or any part thereof, or any other sum required by the
terms of this Lease (including late charges on the foregoing as provided
herein) when due;

(5)           A breach by Tenant in the performance
of any other term, covenant, agreement or condition of this Lease, on the part
of Tenant to be performed, for a period of fifteen (15) days after service of
notice by Landlord upon Tenant.

(b)           All rights and remedies of Landlord
in this Lease enumerated shall be cumulative, and none shall exclude any other
right or remedy, now or hereafter allowed by or available under any statute,
ordinance, rule of court, or the common law, either at law or in equity or
both.  For the purposes of any suit
brought or based hereon, this Lease shall be construed to be a divisible
contract, to the end that successive actions may be maintained on this Lease as
successive periodic sums shall mature hereunder.  The failure of Landlord to insist, in any one
or more instances upon a strict performance of any of the covenants, terms and
conditions of this Lease, or to exercise any right or option herein contained,
shall not be construed as a waiver, or a relinquishment for the future, of such
covenant, term, condition, right or option, but the same shall continue and
remain in full force and effect unless the contrary is

 

16

 

expressed by Landlord in
writing.  The receipt by Landlord of
rent, with knowledge of the breach of any covenant hereof, shall not be deemed
a waiver of such breach, and no waiver by Landlord of any provision hereof
shall be deemed to have been made unless expressed in writing and signed by
Landlord.

(c)           In the event of a default of the
nature set forth in 16(a) above, Landlord may, at any time thereafter, at its
election, without further notice to Tenant, terminate this Lease and Tenant’s
right to possession of the Leased Premises, and take possession of the Leased
Premises, and remove Tenant, any occupant, and any property therefrom, without
relinquishing any rights of Landlord against Tenant.

(d)           If Tenant breaches this Lease as set
forth above, Tenant shall be obligated to, and shall pay to Landlord as
damages, upon demand, and Landlord shall be entitled to recover of and from
Tenant at the election of Landlord, all reasonable expenses which shall have
been incurred as a result of such breach, including the costs of any
proceedings which shall have been necessary in order for Landlord to recover
possession of the Leased Premises and the expenses of rerenting the Leased
Premises (including, but not limited to, any commissions paid to any real
estate agent in connection therewith and actual attorneys’ fees incurred at the
customary hourly rates for such attorneys); plus, either:

(1)           liquidated damages, in an amount
which, at the time of such termination is equal to the installments of Basic
Annual Rent and the aggregate of all sums payable hereunder as additional
rental (the “Additional Rental”) (for such purpose considering the annual
amount of such Additional Rental to be equal to the amount thereof paid in the
lease year or annualized portion thereof immediately preceding such default)
reserved hereunder, for the period which would otherwise have constituted the
unexpired portion of the then current term of this Lease, said amount to be
discounted at the discount rate then in effect at the Federal Reserve Bank in
Baltimore; or

(2)           damages (payable in monthly
installments, in advance, on the first day of each calendar month following
such termination and continuing until the date originally fixed herein for the
expiration of the then current term of this Lease) in an amount or amounts
equal to the sum of (i) the aggregate expenses (other than Additional Rental)
paid by Landlord during the month immediately preceding such calendar month for
all such items as, by the terms of this Lease, are required to be paid by
Tenant, plus (ii) an amount equal to the amount of the installment of
Basic Annual Rent which would have been payable by Tenant hereunder in respect
of such calendar month had this Lease and the Lease Term not been so
terminated, and (iii) the monthly average of the Additional Rental payable
in the lease year or annualized portion thereof immediately preceding such
default, over the rents, if any, in fact, collected by Landlord in respect of
such calendar month pursuant to either rerenting, or from any existing
permitted subleases, and any suit, action or proceeding brought to collect the
amount of the deficiency for any calendar month shall not prejudice in any way
the rights of Landlord to collect the deficiency for any subsequent month by a
similar proceeding.

(e)           Notwithstanding anything herein to
the contrary, upon the occurrence of any breach by Tenant that is not cured
within any applicable grace period, Landlord shall use its reasonable efforts
to mitigate its damages, including using reasonable

 

17

 

efforts to relet the Leased
Premises.  If all amounts required to be
paid by Tenant under this Lease as damages and liquidated damages are actually
paid to and collected by Landlord, then any rent collected by Landlord with
regard to the Leased Premises from a subsequent tenant and attributable to the
period for which Tenant has paid liquidated damages, up to a maximum amount
equal to the amount of rental paid by Tenant as liquidated damages for such
period, shall be rebated to Tenant as and when such amounts are actually
collected by Landlord.

(f)            No act or thing done by Landlord
shall be deemed to be an acceptance of a surrender of the Leased Premises,
unless Landlord shall execute a written release of Tenant. Tenant’s liability
hereunder shall not be terminated by the execution of a new lease of the Leased
Premises by Landlord, regardless of the term of such new lease.  Separate actions may be maintained each month
by Landlord against Tenant to recover the damages then due, without waiting
until the end of the Term of his Lease to determine the aggregate amount of
such damages.

17.           Acceptance of Leased Premises.  Tenant’s occupancy of the Leased Premises
shall constitute acceptance thereof, subject to punchlist items as provided in
Section 2, as complying with all requirements of Tenant and Landlord with
respect to the condition, order and repair thereof.

18.           Access to Premises and Change in
Services.  Landlord and/or the
authorized representative of Landlord or any mortgagee or deed of trust holder
shall have the right without abatement of rent, to enter the Leased Premises at
any reasonable hour upon reasonable prior notice (which may be verbal) (except
in emergencies) to examine the same and/or to make such repairs improvements
and alterations as Landlord and/or such authorized representative shall deem
necessary (but Landlord shall not be obligated to do so) for the safety and
preservation of the Building, or for any other reasonable purpose whatsoever,
including exhibiting the Leased Premises to prospective purchasers, or, during
the last nine months of the Term, to prospective tenants.  The parties shall cooperate so that such
third party visits are conducted at a mutually convenient time and with due
regard to any reasonable security requirements and procedures of Tenant.

19.           Estoppel Certificates.  Tenant agrees at any time and from time to
time upon not less than ten (10) business days prior notice by Landlord to
execute, acknowledge and deliver to Landlord a statement in writing certifying
that this Lease is unmodified and in full force and effect (or if there have
been modifications, that the same is in full force and effect as modified and
stating the modifications) and the dates to which the rent and other charges
have been paid in advance, if any, and stating whether or not, to the best
knowledge of the signer of such certificate, Landlord is in breach and/or
default in performance of any covenant, agreement or condition contained in
this Lease and, if so, specifying each such breach and/or default of which the
signer may have knowledge, and any other matters reasonably requested in such
estoppel certificate, it being intended that a such statement delivered
hereunder may be relied upon by any party not a party to this Lease. Tenant’s
failure to deliver such estoppel certificate within said 10-day period shall be
deemed a material default by Tenant under this Lease.

20.           Subordination.  Tenant accepts this Lease, and the tenancy
created hereunder, subject and subordinate to any ground leases, security
interests, mortgages, deeds of

 

18

 

trust or other financing arrangements now or hereafter a lien upon or
affecting the Leased Premises or any part or parts thereof and to any
extensions, modifications or amendments thereof, provided, however, that so
long as Tenant is not in default of any provision of this Lease, its rights
under this Lease shall not be diminished. 
Tenant shall, at any time hereafter, on request, execute any
instruments, which may be necessary to subordinate, or render prior Tenant’s
interest hereunder to such lien and the failure of Tenant to execute any such
instruments shall constitute a default hereunder.  Landlord agrees to use its best efforts, at
Tenant’s cost and expense, to obtain a non-disturbance agreement in form and
substance acceptable to Landlord’s lender and to Tenant’s counsel.

21.           Attornment.  Tenant agrees that upon any termination of
Landlord’s interest in the Leased Premises Tenant shall, upon request, attorn
to the person or entity then holding title to the reversion of the Leased
Premises (the “Successor”) and to all subsequent Successors, and shall pay to
the Successor all rents and other monies required to be paid by the Tenant,
hereunder and perform all of the other covenants, agreements, provisions,
conditions, obligations and/or duties of Tenant in this Lease contained.

22.           Notices.  All notices, demands and requests required
under this Lease shall be in writing and shall be mailed by United States
registered or certified mail, return receipt requested, postage prepaid, or
sent by Federal Express, or some other nationally recognized overnight courier
service, or hand delivered with a receipt and addressed (i) if to
Landlord, c/o Manekin Corporation, 7165 Columbia Gateway Drive, Columbia,
Maryland 21046, Attention:  General
Counsel, with a copy to Ann Clary Gordon, Esquire, c/o Shapiro and Olander, 36
South Charles Street, 20th Floor, Baltimore, Maryland 21201-3147 or
(ii) if to Tenant, prior to the Commencement Date, at 8320 Guilford Road,
Columbia, Maryland 21046 and thereafter, at the Leased Premises with a copy
to:  John Spirtos, Esquire, Kirkpatrick
and Lockhart, L.L.C., 1800 Massachusetts Ave., N.W., Washington DC, 20005.  All notices delivered in the foregoing manner
shall be deemed received by the other party on the earliest of:  (i) three (3) business days after the
notice is sent; (ii) if applicable, the date the return receipt is
executed; or (iii) if applicable, the date delivered as documented by the
overnight courier service.  All rental
payments and all charges due under this Lease shall be delivered to Landlord at
the address of Landlord set forth above, Attention:  Accounting Department. Either party may
designate a change of address by written notice to the other party.

23.           Landlord’s Liability.  The term “Landlord” as used in this Lease
means only the owner, the mortgagee, or the trustee or the beneficiary under a
deed of trust, as the case may be, for the time being, of the Building (or the
owner of a lease of the Building), so that in the event of any transfer of
title to Landlord’s estate and interest in the Leased Premises, the
transferring entity shall be and hereby is entirely freed and relieved of all
covenants and obligations of Landlord hereunder thereafter accruing.  It is understood that Landlord on the date
hereof is a Maryland limited liability limited partnership, and that no partner
of said limited liability limited partnership, as it may now or hereafter be
constituted, shall have any personal liability to Tenant and/or any person or
entity claiming under, by or through Tenant and as to Landlord, recourse for
such liability shall be limited to Landlord’s interest in the Building.

24.           Separability, Enforceability.               If any term or provision of this
Lease or the application thereof to any person or circumstances shall, to any
extent, be invalid or

 

19

 

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 enforceable to the fullest
extent permitted by law.  Notwithstanding
any language in this Lease to the contrary, if the Lease Term does not commence
on or before January 1, 2010, this Lease shall terminate automatically and
neither party shall have any further liability to the other.

25.           Captions.  All headings anywhere contained in this Lease
are intended for convenience of reference only and are not to be deemed or
taken as a summary of the provisions to which they pertain or as a construction
thereof.

26.           Recordation.  Tenant covenants that if at any time any
mortgagee of Landlord’s interest in the Leased Premises, any trustee or
beneficiary under a deed of trust constituting a lien upon the Building of
which deed of trust Landlord is grantor, or a landlord of Landlord in respect
of the real property upon which the Building is situate, shall require the
recordation of this Lease, or if the recordation of this Lease shall be
required by any valid governmental order, or if any governmental authority
having jurisdiction in the matter shall assess and be entitled to collect
transfer taxes or documentary stamp taxes, or both such taxes on this Lease,
Tenant shall execute such acknowledgements as may be necessary to effect such
recordation and whichever party requires such recordation shall pay all
recording fees, transfer taxes and documentary stamp taxes payable on, or in
connection with, this Lease or such recordation.

27.           Successors and Assigns.  The covenants, conditions and agreements
contained in this Lease shall bind and inure to the benefit of Landlord and
Tenant, and their respective heirs, distributees, executors, administrators,
successors, personal and legal representatives and their permitted assigns.

28.           Waiver of Jury Trial.  Landlord and Tenant desire a prompt
resolution of any litigation between them with respect to this Lease.  To that end, Landlord and Tenant waive trial
by jury in any action, suit, proceeding and/or counterclaim brought by either
against the other on any matters whatsoever arising out of or in any way
connected with this Lease, the relationship of Landlord and Tenant, Tenant’s
use or occupancy of the Leased Premises, any claim of injury or damage and/or
any statutory remedy.  This waiver is
knowingly, intentionally and voluntarily made by Tenant.  Tenant acknowledges that neither Landlord nor
any person acting on behalf of Landlord has made any representations of fact to
induce this waiver of trial by jury or in any way to modify or nullify its
effect.  Tenant further acknowledges that
it has been represented (or has had the opportunity to be represented) in the
signing of this Lease and the making of this waiver by independent legal
counsel, selected of its own free will, and that it has had the opportunity to
discuss this waiver with counsel.  Tenant
further acknowledges that it has read and understands the meaning and ramifications
of this waiver of jury trial.

29.           Miscellaneous.

(a)           As used in this Lease, and where the
context requires:  (1) the masculine
shall be deemed to include the feminine and neuter and vice-versa; and
(2) the singular shall be deemed to include the plural and vice-versa.

 

20

 

(b)           This Lease was made in the State of
Maryland and shall be governed by and construed in all respects in accordance
with the laws of the State of Maryland.

(c)           Tenant covenants and agrees that it
shall not inscribe, affix, or otherwise display signs, advertisements or
notices in, on, upon or behind any windows or on any door, partition or other
part of the interior or exterior of the Building without the prior written
consent of Landlord, which consent shall not be unreasonably withheld,
conditioned or delayed.  If such consent
be given by Landlord, any such sign, advertisement, or notice shall be
inscribed, painted or affixed by Landlord, or a company approved by Landlord,
but the cost of the same shall be charged to and be paid by Tenant, and Tenant
agrees to pay the same promptly, on demand. 
Notwithstanding the foregoing, Tenant shall have the right, at its sole
cost and expense, to erect an identification sign on the exterior of the
Building, subject, however, to Tenant’s obtaining the prior written approval of
such signs from Landlord and HRD. 
Landlord shall not unreasonably withhold its consent to any such signs
provided same are reasonably similar to other corporate identification signs
within the Columbia Gateway Center.  Such
signs shall be installed by a reputable contractor reasonably acceptable to
Landlord.  Tenant shall hold Landlord
harmless from any damage caused to the Building as a result of the installation
of such signs.  Upon termination of the
Lease, it shall be Tenant’s obligation, at its sole expense, to remove such
signs and to restore the exterior face of the Building to its condition prior
to erecting such signs, normal wear and tear excepted.

(d)           Landlord shall use its best efforts
to provide a minimum of three hundred (300) parking spaces on the Land for
Tenant’s exclusive use.  The parties
acknowledge however, that the final design of the Building will determine the
available parking areas.

(e)           Except as otherwise specifically
provided in this Lease, no abatement, refund, offset, diminution or reduction
of rent, charges or other compensation shall be claimed by or allowed to
Tenant, or any person claiming under it, under any circumstances, whether for
inconvenience, discomfort, interruption of business, or otherwise, arising from
the making of alterations, changes, additions, improvements or repairs to the
Building or the Leased Premises, by virtue or because of any present or future
governmental laws, ordinances, or for any other cause or reason.

(f)            Landlord covenants and agrees that,
upon the payment of the rent herein provided and the performance by Tenant of
all the covenants, agreements and provisions hereof on Tenant’s part to be kept
and performed, Tenant shall have, hold and enjoy the Leased Premises, free from
any interference by, from or through Landlord except as may be otherwise
expressly provided herein.

(g)           Landlord hereby waives any lien it
may have to any of Tenant’s files, receivables, intellectual property, general
intangibles, inventory, equipment or furniture; provided, however, that such
equipment or furniture shall not include any “fixtures” in or “leasehold
improvements” made to the Leased Premises, which terms are defined as all
articles in the nature of personal property or other improvements which have
been so annexed to or incorporated in the Leased Premises that they have become
a permanent part of the Leased Premises and cannot be removed therefrom without
material injury thereto.

 

21

 

(h)           Landlord represents and warrants to
Tenant that, as of the Rent Commencement Date, the exterior of the Building and
access thereto will comply with the Americans with Disabilities Act and the
regulations promulgated thereunder.

30.           Environmental Assurances.

(a)           Covenants.  Tenant covenants with Landlord:

(1)           that it shall not
Generate (as defined below) Hazardous Substances (as defined below) at, to or
from the Leased Premises unless the same is specifically approved in advance by
Landlord in writing;

(2)           to comply with all
obligations imposed by applicable law, and regulations promulgated thereunder,
and all other restrictions and regulations upon the Generation of Hazardous
Substances (whether or not at, to or from the Leased Premises);

(3)           to deliver promptly
to Landlord true and complete copies of all notices received by Tenant from any
governmental authority with respect to the Generation by Tenant of Hazardous
Substances (whether or not at, to or from the Leased Premises);

(4)           to complete fully,
truthfully and promptly any questionnaires sent by Landlord with respect to
Tenant’s use of the Leased Premises and Generation of Hazardous Substances;

(5)           to permit entry,
upon reasonable notice, onto the Leased Premises by Landlord or Landlord’s representatives
during normal business hours (or at any time and without notice in the event of
an emergency) to verify and monitor Tenant’s compliance with its
representations, warranties and covenants set forth in this Section;

(6)           to pay to Landlord,
as additional rent, the costs incurred by Landlord hereunder, including the
costs of such monitoring and verification; provided, however, that so long as
Tenant does not store or use hydrochloric acid at the Leased Premises, the cost
of such monitoring and verification shall not exceed $750.00 per year; and

(7)           if Tenant Generates
Hazardous Substances at, to or from the Leased Premises at any time during the
Lease Term, to furnish to Landlord, at the expiration of the Lease Term or at
the sooner termination of the Lease Term as herein provided, a certification in
form and content acceptable to Landlord from an environmental audit company
acceptable to Landlord to the effect that, based upon an inspection conducted
by such environmental audit company not more than thirty (30) days prior to the
expiration or termination of the Lease Term, the Leased Premises are free from
Hazardous Substances.

Notwithstanding
anything to the contrary in this Section 30(a), Tenant shall have the right to
store hydrogen gas in the Leased Premises provided that (a) such storage
shall be in compliance with all applicable environmental laws, (b) such
storage shall be contained in cabinets, with its own venting and exhaust
system, as shall be approved by Landlord, and (c) Tenant shall obtain such
environmental liability insurance as Landlord may reasonably request with
respect thereto.  Additionally, Tenant
shall have the right to store two (2) gallons of

 

22

 

hydrochloric acid in the Leased Premises provided that (a) such
storage shall be in compliance with all applicable environmental laws and
(b) Tenant shall obtain such environmental liability insurance as Landlord
may reasonably request with respect thereto.

(b)           Indemnification.  Tenant agrees to indemnify and defend
Landlord, its managers and agents (with legal counsel reasonable acceptable to
Landlord) from and against any reasonable costs, fees or expenses (including,
without limitation, environmental assessment, investigation and environmental
remediation expenses, third party claims and environmental impairment expenses
and reasonable attorneys’ fees and expenses) incurred by Landlord or its
managers and agents, as the case may be, in connection with Tenant’s Generation
of Hazardous Substances at, to or from the Leased Premises or in connection
with Tenant’s failure to comply with its representations, warranties and
covenants set forth in this Section. 
This indemnification by Tenant will remain in effect after the
termination or expiration of this Lease.

(c)           Indemnification
by Landlord.  Landlord agrees to
indemnify and defend Tenant (with legal counsel reasonably acceptable to
Tenant) from and against any reasonable costs, fees or expenses (including,
without limitation, environmental assessment, investigation and environmental
remediation expenses, third party claims and environmental impairment expenses
and reasonable attorneys’ fees and expenses) incurred by Tenant in connection
with Landlord’s Generation of Hazardous Substances at, to or from the Leased
Premises.  This indemnification by
Landlord will remain in effect after the termination or expiration of this
Lease.

(d)           Definitions.  The term “Hazardous Substance” means
(i) any “hazardous waste” as defined by the Resource Conservation and
Recovery Act of 1976 (42 U.S.C. § 6901 et seq.), as amended from time to
time, and regulations promulgated thereunder; (ii) any “hazardous
substance” as defined by the Comprehensive Environmental Response, Compensation
and Liability Act of 1980 (42 U.S.C. § 9601 et seq.), as amended from
time to time, and regulations promulgated thereunder; (iii) any “oil,
petroleum products, and their by-products” as defined by the Maryland
Environment Code Ann. § 4-411(3)(i), as amended from time to time, and regulations
promulgated thereunder; (iv) any “controlled hazardous substance” or “hazardous
substance” as defined by the Maryland Environment Code Ann., Title 7, subtitle
2, as amended from time to time, and regulations promulgated thereunder;
(v) any “infectious waste” as defined by the Maryland Environment Code
Ann. § 9-227, as amended from time to time, and regulations promulgated
thereunder; (vi) any substance the presence of which on the Real Property
is prohibited, regulated or restricted by any local law or regulation or any
other law or regulation similar to those set forth in this definition; and
(vii) any other substance which by law or regulation requires special
handling in its Generation.  The term “To
Generate” means to use, collect, generate, store, transport, treat or dispose
of.

31.           Lender’s Requirements.  Tenant agrees to execute and deliver to
Landlord an amendment to this Lease incorporating such modifications of, and
additions to, the terms and provisions of this Lease as the parties secured by
the Deed of Trust shall require as a condition precedent to their approving
this Lease.  Notwithstanding the
foregoing, Tenant shall not be required to execute any such amendment which
shall modify the provisions of this Lease as to the amounts of Basic Annual
Rent, additional rent, or other sums payable by Tenant hereunder, or any other
material economic terms hereof as reasonably determined by Tenant.

 

23

 

32.           Authority.  Tenant warrants to Landlord that Tenant is a
corporation organized and validly existing in good standing under the laws of
the State of Delaware and qualified to transact business in the State of
Maryland.  In addition, Tenant warrants
to Landlord that this Lease has been properly authorized and executed by Tenant
and is binding upon Tenant in accordance with its terms.  Tenant’s resident agent’s name and address in
the State of Maryland are Corporation Trust, Inc., 300 East Lombard Street,
Baltimore, Maryland 21202.  Tenant agrees
to notify Landlord in writing of any change with respect to its resident agent.

33.           Force Majeure.  In the event that either party hereto shall
be delayed or hindered in or prevented, by reason of weather, strikes,
lock-outs, labor troubles, inability to procure materials, failure of power,
restrictive governmental laws or regulations, riots, insurrection, war, Acts of
God or other reason of a like nature (excluding lack of funds) not the fault of
the party delayed from performing work or doing any act required under the
terms of this Lease, then performance of such act shall be excused for the
period of the delay and the period of the performance of any such act shall be
extended for a period equivalent to the period of such delay.  The party so delayed shall give prompt notice
thereof to the other party.  The
provisions of this Section 33 shall not operate to excuse Tenant from prompt
payment of rent, additional rent or any other payments required by the terms of
this Lease.

34.           Real Estate Broker.  Landlord and Tenant warrant to the other that
no real estate broker other than Manekin Corporation and Casey & Associates
(“Casey”) has been employed, caused to be employed, or otherwise utilized in
bringing about this Lease, and each agrees to hold harmless and indemnify the
other with respect to the foregoing warranty. 
The commission payable by Landlord to Casey with respect to the initial
Lease Term shall be equal to three percent (3%) of the aggregate Basic Annual
Rent payable by Tenant hereunder during the initial Lease Term (exclusive of
any additional rent payable by Tenant for tenant improvements pursuant to
Section 1(f) above, and any additional rent payable by Tenant with respect to
the premises located at 8320 Guilford Road pursuant to Rider No. 5 hereof).  Upon execution and delivery of this Lease by
Tenant, Landlord shall pay to Casey $40,000 of the commission due
hereunder.  The balance of said
commission shall be paid by Landlord on or about the Rent Commencement Date.  If this Lease is cancelled by Tenant prior to
the Rent Commencement Date, then the balance of the commission to Casey shall
not be payable.  If Tenant’s renewal
option is exercised by Tenant pursuant to Rider No. 3 below, then Landlord
shall pay to Casey a commission equal to two percent (2%) of the aggregate
Basic Annual Rent payable by Tenant during any renewal term hereunder, provided
that Casey is actively involved in the renewal transaction.  Such amount shall be payable by Landlord upon
the commencement of the applicable renewal term.

35.           Security Letter of Credit.  Tenant shall deposit with Landlord a clean,
non-contingent, irrevocable letter of credit (the “Security Letter of Credit”),
in form and substance satisfactory to Landlord and issued by a financial
institution acceptable to Landlord, in the principal amount of Three Hundred
Thousand Dollars ($300,000).  The
Security Letter of Credit shall be due and payable by Tenant simultaneously
with Tenant’s waiver of its First Cancellation Right, or on the Rent
Commencement Date, if the First Cancellation Right is neither exercised nor
waived by Tenant by such date.  Landlord’s
receipt of the Security Letter of Credit shall be confirmed in the Lease
Commencement Agreement.  To the extent
the same has not been applied or exhausted pursuant to the further terms
hereof, the Security Letter of Credit shall be returned

 

24

 

by Landlord to Tenant following the expiration of the Lease Term.  In addition to any and all other remedies
available to Landlord under this Lease, Landlord shall have the right to draw
upon the Security Letter of Credit to cure any breach by Tenant of any of
Tenant’s obligations or duties pursuant to this Lease, and upon any such draw,
Tenant shall immediately restore the same to the dollar amount set forth in
this Section.  No interest shall accrue
thereon or be paid or payable by Landlord with respect to the Security Letter
of Credit.  In the event that Tenant
elects, pursuant to Section 1(f) above, to amortize any additional amounts
toward the cost of the tenant improvements, then Tenant shall increase the
principal amount of the Security Letter of Credit by an amount equal to the
additional amount so amortized.  At such
time as Tenant provides satisfactory evidence to Landlord that Tenant has
obtained a credit rating of BBB or better, and provided there are no uncured
events of default existing at such time, the Security Letter of Credit shall be
returned to Tenant.

36.           Holding Over.  If Tenant holds possession of the Leased Premises
after the termination of this Lease without Landlord’s written consent, Tenant
shall become a tenant from month to month at 150% the rent payable during the
final lease year and upon all other terms herein specified and shall continue
to be such tenant from month to month until such tenancy shall be terminated by
either party giving the other a written notice at least thirty (30) days prior
to the date of its intended termination of such tenancy.  Nothing contained in this Lease shall be
construed as a consent by Landlord to the occupancy or possession of the Leased
Premises by Tenant after termination of this Lease.  Upon the termination of this Lease, Landlord
shall be entitled to the benefit of all public general or public local laws
relating to the speedy recovery of the possession of lands and tenements held
over by tenants, that may now or hereafter be in force.

37.           Net Lease.  It is the purpose and intent of Landlord and
Tenant that the Basic Annual Rent shall be net to Landlord, so that this Lease
shall yield, net, to Landlord, the Basic Annual Rent specified in Section 4
hereof in each lease year during the Term of this Lease, and that all actual
costs, expenses and charges relating to the Leased Premises which may arise or
become due during the Term of this Lease shall be paid by Tenant, except as
otherwise provided for herein and that Landlord shall be indemnified and saved
harmless by Tenant from and against the same.

38.           Contingency.  Tenant acknowledges that Landlord is the
contract purchaser of the Land, and hereby agrees that this Lease and each of
Landlord’s obligations hereunder are contingent upon Landlord, on or before
September 24, 1998, closing on its purchase of the Land or obtaining the
owner’s written consent to enter onto the Land and commence construction in
accordance with the terms of this Lease; provided, however, that if Landlord
fails to close on its purchase or to obtain such written consent by
September 24, 1998, through no fault of its own but is diligently pursuing
the same, then such period may be extended through November 24, 1998 by
Landlord’s notice to Tenant of such extension given on or before
September 24, 1998. Notwithstanding the foregoing, in the event that this
Lease is not executed by Tenant and delivered to Landlord by July 24,
1998, then the dates of September 24, 1998 and November 24, 1998 as
aforesaid shall be extended by one (1) day for each day after
July 24, 1998 until the Lease is executed by Tenant and delivered to
Landlord.  In the event this contingency
is not satisfied by Landlord on or before September 24, 1998 (as the same
may be extended in accordance with the preceding sentence) due to the fault of
Landlord, or by

 

25

 

November 24, 1998 in the absence of such Landlord fault if such
period is extended by Landlord (as applicable, the “Contingency Expiration Date”),
then this Lease shall terminate automatically on the Contingency Expiration
Date, the Cancellation Letter of Credit, as hereinafter defined, and the
Security Letter of Credit, if previously delivered to Landlord, shall be
returned to Tenant, and neither Landlord nor Tenant shall have any further
obligations under this Lease.

39.           Riders.  Five (5) riders are attached hereto and made
a part hereof.

IN
WITNESS WHEREOF, Landlord and Tenant have respectively signed this Lease under
seal as of the day and year first above written.

	
  WITNESS/ATTEST

  	
   

  	
  GATEWAY
  S-8 LLLP

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  RA
  & DM, INC., General Partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  (SEAL)

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  LANDLORD

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NOVA
  TELECOMMUNICATIONS, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/
  [Signature]

  	
   

  	
   

  	
  By:

  	
  /s/
  David R. Huber

  	
  (SEAL)

  
	
   

  	
   

  	
   

  	
  Name:

  	
  David
  R. Huber

  
	
   

  	
   

  	
   

  	
  Title:

  	
  President
  and CEO

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  TENANT

  
								

 

26

 

STATE OF MARYLAND,
CITY/COUNTY OF ____________ TO WIT:

I
HEREBY CERTIFY that on this ________ day of July, 1998 before me, the
subscriber, a Notary Public of the State of Maryland, City/County of
___________, personally appeared ______________________, _____________ of RA
& DM, Inc., general partner of GATEWAY S-8 LLLP,
Landlord, and he acknowledged the foregoing Lease Agreement to be the act and
deed of said limited liability limited partnership.

WITNESS
my hand and Notarial Seal.

My Commission Expires:

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Notary Public

  

 

 

STATE
OF Md, CITY/COUNTY OF HOWARD TO WIT:

I
HEREBY CERTIFY that on this 4 day of August, 1998 before me, the
subscriber, a Notary Public of the State of Md, City/County of Howard,
personally appeared David R. Huber, President of NOVA TELECOMMUNICATIONS,
INC., Tenant, and he acknowledged the foregoing Lease Agreement to
be the act and deed of said body corporate.

WITNESS
my hand and Notarial Seal.

My
Commission Expires:

	
  GLADYS
  MARIE DONACHY

  	
   

  	
   

  
	
  NOTARY
  PUBLIC STATE OF MARYLAND

  	
   

  	
   

  
	
  My Commission Expires November 1, 2000

  	
   

  	
  /s/ Gladys Marie Donachy

  
	
   

  	
   

  	
  Notary Public

  

 

27

 

RIDER NO. 1

First Right of Cancellation

Rider to Section 2 - Term

A.            Tenant shall have the right to
terminate this Lease at anytime on or before the Rent Commencement Date (which
date is hereinafter referred to as the “First Cancellation Date”), provided
that:

(1)           Tenant shall have given to Landlord
written notice of such election to terminate on or before the First
Cancellation Date (the “First Notice”); and

(2)           Tenant, on the date Landlord receives
such First Notice and on the First Cancellation Date, shall not be in breach or
default of any agreement, condition or covenant by which Tenant is obligated
under this Lease; and

(3)           Tenant shall have paid to Landlord on
or before the First Cancellation Date, in addition to any other amounts that
may be due under this Lease prior to the First Cancellation Date, a
cancellation fee of Five Hundred Thousand Dollars ($500,000) (the “Cancellation
Fee”).  Such amount so payable by Tenant
represents liquidated damages for terminating this Lease prior to the
expiration of the original Lease Term, such damages not otherwise being
susceptible to reasonable calculation.

B.            Time is of the essence with respect
to Tenant’s exercise of its rights under this Rider, and Tenant acknowledges
that Landlord requires strict adherence to the requirement that the First
Notice be timely made and in writing.

C.            Tenant, contemporaneously with the
execution of this Lease, shall provide Landlord with a clean, non-contingent
irrevocable letter of credit (the “Cancellation Letter of Credit”), in form and
substance satisfactory to Landlord and issued by a financial institution
acceptable to Landlord, in the amount of Five Hundred Thousand Dollars
($500,000), as security for Tenant’s obligation to pay the Cancellation Fee
pursuant to this Rider No. 1.  Landlord
shall have the right to draw upon the Cancellation Letter of Credit for payment
of the Cancellation Fee.  In the event Tenant
waives its cancellation right pursuant to this Rider No. 1, the Cancellation
Letter of Credit shall be returned to Tenant. 
Landlord’s receipt of the Cancellation Letter of Credit shall be
confirmed in the Lease Commencement Agreement.

D.            In the event that Tenant exercises
its first cancellation right pursuant to this Rider No. 1 and pays to Landlord
the Cancellation Fee as required above, as well as any other amounts payable by
Tenant hereunder, then the fallowing provision shall apply if the entire Leased
Premises are subsequently relet to a third party tenant (the “Third Party”) and
the rent commencement date under the third-party lease (the “Third Party Lease”)
occurs prior to December 1, 1999:

(1)           If the basic annual rent payable by
the Third Party under the Third Party Lease (exclusive of leasing costs and any
additional amounts payable by the Third Party Tenant for tenant improvements
which exceed Landlord’s allowance of $20.00 per square foot)

 

28

 

(the “Net Third Party Rent”) is equal to or greater than the Basic
Annual Rent that would have been payable by Tenant hereunder for the same
period as the term of the Third Party Lease, then Tenant shall be entitled to
reimbursement of fifty percent (50%) of the Net Third Party Rent paid by the
Third Party for the period from the rent commencement date under the Third
Party Lease through November 30, 1999.

(2)           If the Net Third Party Rent is less
than the Basic Annual Rent that would have been payable by Tenant hereunder for
the same period as the term of the Third Party Lease, then Tenant shall be
entitled to reimbursement of 50% of the Net Third Party Rent paid by the Third
Party for the period from the rent commencement date under the Third Party
lease through November 30, 1999, but only after deducting from such rental
amount the difference between (a) the Basic Annual Rent that would have
been payable by Tenant hereunder through the term of the Third Party Lease and
(b) the Net Third Party Rent payable by Third Party through the term of
the Third Party Lease.

For
example:

1)             Third Party Lease - $62,000 per
month with rent commencement date of September 1, 1999.  $62,000 payable by Third Party Tenant is
greater than $57,500 payable by Tenant (assuming 60,000 square feet building),
so Tenant receives 50% of the Third Party Rent for September 1, 1999 -
November 30, 1999.  $62,000 x 3
months = $93,000 payable to Tenant.

2)             Third Party Lease - Five year lease
with rent commencement date of July 1, 1999; basic annual rent payable by
Third Party is $2500.00 per month less than Basic Annual Rent payable by
Tenant.  The difference between the Basic
Annual Rent that would have been payable by Tenant hereunder for the same term
as the Third Party Lease and the Net Third Party Rent is $150,000 ($2,500 x 60
months), which amount is deducted from the Net Third Party Rent as follows
before calculating Tenant’s share:

July 1,
1991 - November 30, 1999 rent = (5 x $55,000) = $275,000

Tenant receives 50% of ($275,000 - $150,000) = $62,500

 

29

 

RIDER NO. 2

Second Right of Cancellation

Rider to Section 2 - Term

Tenant
shall have the right to terminate this Lease as of the last day of any calendar
month following the fifth full lease year of the Lease Term (which date, as
applicable, is hereinafter referred to as the “Second Cancellation Date”), provided
that:

(a)           Tenant shall have given to Landlord
written notice of such election to terminate at least one hundred eighty (180)
days prior to the Second Cancellation Date (the “Second Notice”); and

(b)           Tenant, on the date Landlord receives
such Second Notice and on the Second Cancellation Date shall not be in breach
or default of any agreement, condition or covenant by which Tenant is obligated
under this Lease; and

(c)           Tenant shall have paid to Landlord on
or before the Second Cancellation Date, in addition to any other amounts that
may be due under this Lease prior to the Second Cancellation Date, the
unamortized balance of the “Termination Costs”, as hereinafter defined.  Such amount so payable by Tenant represents
liquidated damages for terminating this Lease prior to the expiration of the
original Lease Term, such damages not otherwise being susceptible to reasonable
calculation. The “Termination Costs” include all tenant improvement costs
(including Landlord’s Contribution and any Additional Contributions),
architectural fees, consulting fees, reasonable legal fees, leasing
commissions, Unamortized Termination Costs as described in Rider No. 5 below,
or any other reasonable costs and expenses incurred by Landlord in connection
with this Lease, which amounts shall be amortized over the Lease Term with
interest at the rate of 10% per annum. 
Landlord shall confirm the total amount of the Termination Costs in the
Lease Commencement Agreement or another writing between Landlord and Tenant,
and shall provide an amortization schedule to Tenant with respect thereto.

Time
is of the essence with respect to Tenant’s exercise of its rights under this
Rider, and Tenant acknowledges that Landlord requires strict adherence to the
requirement that the Second Notice be timely made and in writing.

 

30

 

RIDER NO. 3

 

Renewal Option

Rider to Section 2 (Term)

Provided
(i) this Lease is then in full force and effect, (ii) Tenant is not
in default respecting any provision or condition of this Lease either on the
date Tenant elects to renew or on the date the renewal term commences, and,
(iii) Tenant has not failed more than two times during the original term
of this Lease to pay any payments called for by this Lease on the date such
payment is due, then Tenant shall have the right to renew this Lease for two
(2) renewal terms of five (5) years each immediately following the expiration
of the original term on the same terms, conditions, and provisions as are set
forth in this Lease with the same force and effect as though this Lease had
originally provided for a fifteen (15) or twenty (20) year term, save that:

(i)            there shall be no further right of
renewal, after the second renewal term, and

(ii)           the per square foot Basic Annual Rent
payable with respect to the Leased Premises shall be $15.20 during the first
renewal term and $17.44 during the second renewal term.

Tenant
shall be deemed to have waived the right to exercise this renewal option unless
not less than two hundred forty (240) days prior to the expiration of the
original term, or the first renewal term, as the case may be, Tenant shall have
notified Landlord in writing of Tenant’s election to renew (the “Renewal Notice”).  Time is of the essence with respect to Tenant’s
exercise of its rights under this Rider and Tenant acknowledges that Landlord
requires strict adherence to the requirement that the Renewal Notice be timely
made and in writing.

 

31

 

RIDER NO. 4

Rider to Section 4.1(b)

Common
Area Expenses shall not include the following:

(i)            Any expenses incurred in connection
with capital improvements, other than as set forth in Section 4.1(b).

(ii)           Costs of repairs and replacements
occasioned by casualty or condemnation and payable by insurance proceeds.

(iii)          Any cost that is reimbursed to
Landlord by insurance carriers, or is separately charged to and payable by
tenants.

(iv)          All ownership costs not allocable to
actual management, repair, maintenance or operation of:  the Building, including, without limitation,
leasing commissions, advertising and other direct expenses or procuring tenants,
including lease concessions.

(v)           Depreciation of the Building.

(vi)          Interest on and amortization of any
debt or any costs of financing, refinancing, constructing or purchasing the
Leased Premises.

(vii)         Interest and penalties for late payment
of Taxes provided Tenant has deposited with Landlord the amount necessary to
pay such Taxes in accordance with this Lease and any fines or penalties
incurred by Landlord due to violation by Landlord of any rule of a governmental
authority other than those arising from Tenant’s use or occupancy.

(viii)        Wages, salaries and benefits of
employees over the rank of property manager except to the extent those
employees are directly involved in the day to day management and operation of
the Building.

(ix)           Costs of correcting initial
construction defects for work performed by Landlord or any affiliate of
Landlord.

(x)            Costs of repairs caused by Landlord’s
gross negligence.

(xi)           Any rent under any ground or
underlying lease.

(xii)          Costs incurred due to Landlord’
negligence or willful misconduct or due to violation by Landlord of the terms
or conditions of this Lease on its part to be performed.

(xiii)         General overhead of Landlord except as
set forth in (viii) above

 

32

 

RIDER NO. 5

8320 Guilford Road Premises

Provided
(i) this Lease is in full force and effect and (ii) Tenant is not in
default respecting any condition or provision hereof, then, in the event that
Tenant terminates its lease dated September 12, 1997 between Tenant and
Rivers Center Associates Limited Partnership (“Rivers”) for its existing
facility located at 8320 Guilford Road (the “Guilford Road Lease”), Landlord
will pay to Rivers, on behalf of Tenant, the amount of the “Unamortized
Termination Cost” payable by Tenant pursuant to Rider No. 1 thereof.  Landlord’s obligation to pay the Unamortized
Termination Cost is subject, however, to Tenant’s delivery to Landlord of the “Guilford
Road Letter of Credit”, as described below. 
All amounts paid by Landlord to Rivers pursuant to this Rider No. 5
shall be repaid by Tenant to Landlord, as additional rent, in equal monthly
installments over the balance of the Lease Term, with interest calculated at
the rate of ten percent (10%) per annum. 
Such installments shall be payable at the same time and in the same
manner as the monthly installments of Basic Annual Rent pursuant to Section 4
hereof.

Prior
to Landlord’s payment of the Unamortized Termination Cost on behalf of Tenant
as aforesaid, Tenant shall provide Landlord with a clean, non-contingent irrevocable
letter of credit (the “Guilford Road Letter of Credit”) in form and substance
satisfactory to Landlord and issued by a financial institution acceptable to
Landlord, in the amount of the Unamortized Termination Cost, as security for
Tenant’s obligation to repay such amount to Landlord pursuant to this Rider No.
5.  Landlord shall have the right to draw
upon the Guilford Road Letter of Credit for repayment of the amounts payable by
Tenant to Landlord hereunder.  At such
time as Tenant provides satisfactory evidence to Landlord that Tenant has
obtained a credit rating of BBB or better, and provided there are no uncured
events of default existing at such time, the Guilford Road Letter of Credit
shall be returned to Tenant.

 

33

 

EXHIBIT A

[Figure]

 

34

 

 

	
   

  
	
  BUILDING SPECIFICATIONS

  
	
   

  
	
  NOVA TELECOMMUNICATIONS

  
	
  Columbia, MD

  
	
   

  
	
  July 23, 1998

  
	
   

  

 

A.            SITEWORK

1.                                       Provide all
stakeout and sediment control.

2.                                       Perform all
excavation required to furnish a balanced site to accommodate the building and
site layout.  The site shall be within 2
ft. of the average grade of Columbia Gateway Drive contiguous to the site.

3.                                       Furnish and
install all on site fire hydrants, water and sewer mains, within 5’ of
building.

4.                                       Install a
complete storm drainage system including all inlets and manholes required.  Storm water management is provided off site
by others.

5.                                       Coordinate with
BGE to install primary electric service to a specified transformer location.

6.                                       Coordinate with
Bell Atlantic to install onsite cable to one specified location inside the
building.

7.                                       Furnish and
install site lighting to meet HRD requirements.

8.                                       Install all
curb and gutter, and inlet throats as required.

9.                                       Pave all
parking lots using a Howard County P-1 section, and pave truck sections at
loading areas using a Howard County P-2 section.  Asphalt will be adequately sloped to avoid
ponding.

10.                                 All of the
above will be installed over subgrade compacted to 95% of a standard proctor
approved by the geotechnical engineer.

11.                                 Install all
sidewalks required by Howard County and HRD.

12.                                 Install
landscaping to meet or exceed HRD standards. 
Landlord to provide irrigation for the landscaping if Tenant desires, at
Tenant expense.

13.                                 Provide traffic
control signs as required by Howard County.

14.                                 Tenant will
have final approval of Shell Building Plans. 
Approval must be granted within (1) week of submittal.

B.            CONCRETE

1.                                       Spread
footings:  minimum bearing capacity of
3,000 PSI reinforced as required.

2.                                       Slab on grade:

- Perimeter insulation will be 2” polystyrene, 2 feet down and 2 feet
in, foamular 250

- 4” stone base will be #6 stone covered with a 6 mil polyethylene
vapor barrier

-A 4”, 3,000 PSI concrete slab will be provided and receive 1 coat of
curing compound to be coordinated with tenant.

 

Nova Telecomm.

Bldg. Specs

Page 2

 

B.            MASONRY INCLUDES:

1.                                       Concrete
masonry unit (CMU) foundations as required.

2.                                       Brick veneer
including shapes as required.  All metal
studs supporting brick veneer will be in compliance with BIA standards.

3.                                       PVC flashing as
required.

4.                                       Walls at the
rear of the building will be CMU.

C.            METALS

1.                                       Furnish and
erect all columns, beams, bar joists, and metal decking as required

2.                                       Furnish and
erect all spandral framing including all structural metal stud, exterior
sheeting, vapor barrier, and brick ties as required

3.                                       Furnish and
install all miscellaneous metal angles, plates and bolts required

4.                                       Clear height
will be ± 14 feet from finish floor

5.                                       Roof will be
designed to accept weight of 20 ton capacity HVAC units at specified locations
adjacent to columns inside the roof screen area.

6.                                       Landlord shall
erect the roof screen.

D.            CARPENTRY

1.                                       Install all
miscellaneous wood blocking required at parapet walls, soffits, roof ladder,
roof hatch

E.             THERMAL &
MOISTURE PROTECTION

1.                                       Caulk all
exterior masonry control joints (to match brick on mortar)

2.                                       A single ply
..045 EPDM ballasted roof system complete with 10 year warranty, all flashings
and accessories required will be installed over a R-14 roof insulation.

3.                                       Fully insulate
all exterior metal stud walls with R-19 Batt insulation.  Exterior block walls at rear of building will
have foam fill in the wall cavity.

F.             WINDOWS & DOORS

1.                                       Provide
aluminum window system (Kawneer or equal) glazed with insulated solar grey
glass

2.                                       Provide
storefront doors, as required at building entrances, with standard hardware

3.                                       All interior
doors will be solid core birch set in hollow metal frames (fire rated as
required) and furnished with hardware per code.

4.                                       Provide (2)
overhead doors (insulated) 8’x8’

5.                                       Provide 6’x8’
windows at future overhead door locations.

 

2

Nova Telecomm.

Bldg. Specs

Page 3

 

 

G.            FINISHES

1.                                       All exposed
steel lintels and rails to be painted, primed and (2) finish coats of oil based
paint.

H.            PLUMBING

1.                                       Roof drains -
as required.  Roof drains will not
discharge onto pedestrian traffic areas. 
All roof drains will discharge underground.

2.                                       Domestic water
service will run the entire length of the interior building via a 2” main.

3.                                       All sanitary
lines and storm drains below slab will be PVC.

4.                                       Landlord will
provide sanitary line along the length of the building 20’ to 30’ from front
wall.

5.                                       Above ground
sanitary vents will be PVC.

6.                                       Provide gas
pipe to meter location if available.

I.              SPRINKLER

1.                                       A sprinkler
main to run the entire length of the building and a warehouse (upright heads)
type distribution system for approximately 20,000 sq. Ft. area, is estimated to
cost $21,500.  If actual cost exceeds
$21,500, Landlord will pay the excess.

J.             ELECTRICAL

1.                                       Primary
electric service will be supplied to Novatel furnished and installed switch
gear Feeder cables (sufficient to carry 2000 AMPS at 480V), from transformer
will terminate in a duct located in the electric room.

2.                                       Site lighting
will be provided to meet the Howard County and HRD requirements

3.                                       Landlord will
provide electrical conduit to location of exterior sign.

 

3

 

EXHIBIT C

LEASE COMMENCEMENT AGREEMENT

 

THIS
LEASE COMMENCEMENT AGREEMENT, made this ____ day of
___________ 199_, by and between Gateway S-8 LLP (“Landlord”) and Nova
Telecommunications, Inc. (“Tenant”).

WITNESSETH:

WHEREAS,
Landlord and Tenant have entered into that certain Lease Agreement dated
__________, 1998, (the “Lease”) for the premises located at
__________________________ (the “Leased Premises”); and

WHEREAS,
Landlord and Tenant wish to set forth their agreements as to the term of the
Lease, as well as certain other matters, all as more particularly set forth
below.

NOW,
THEREFORE, in consideration of the Leased Premises as described in the Lease
and the covenants set forth therein, Landlord and Tenant agree as follows:

1.             The “Commencement Date” for all
purposes of the Lease is _____________, 1999.

2.             The “Rent Commencement Date” for
all purposes of the Lease is _____________, 1999.

3.             The initial Lease Term shall expire
on _____________, 2009.

4.             The Security Letter of Credit in
the principal amount of _____________ [$300,000, plus the amount of any “Additional
Contribution”] and the Cancellation Letter of Credit in the principal amount of
$500,000 [and the Guilford Road Letter of Credit, if applicable] were received
by Landlord.

5.             The “Rentable Area of the Leased
Premises” is, for all purposes of this Lease, __________________________ square
feet.

6.             The total amount of the “Additional
Contribution” paid or incurred by Landlord on behalf of Tenant pursuant to
Section 1(f) of the Lease is $_____________ which amount shall be repaid by
Tenant, as additional rent, in equal monthly installments of $_____________
each, payable at the same time and in the same manner as, and in addition to,
payments of Basic Annual Rent pursuant to Section 4 of the Lease.

7.             The Basic Annual Rent will be
adjusted pursuant to Section 1(e) of the Lease or Rider No. 5 (as to the
Guilford Road lease) as follows:

 

 

	
   

  
	
   

  
	
   

  

 

8.             The Basic Annual Rent payable
pursuant to Section 4 of the Lease is as follows (without regard to the
adjustments described in paragraphs 6 and 7 above):

	
   

  	
   

  	
  Basic Annual

  	
   

  	
  Monthly

  	
   

  	
  Per

  	
   

  
	
   

  	
   

  	
  Rent

  	
   

  	
  Installment

  	
   

  	
  Square Foot

  	
   

  
	
  1st
  lease year

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2nd
  lease year

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3rd
  lease year

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4th
  lease year

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5th
  lease year

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6th
  lease year

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7th
  lease year

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8th
  lease year

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9th
  lease year

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10th
  lease year

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

9.             The total Termination Costs
pursuant to Rider No. 2 of the Lease is $_____________, which amounts shall be
amortized over the Lease Term in accordance with the amortization schedule
attached hereto.

IN
WITNESS WHEREOF, the parties hereto have executed this Commencement Agreement
as of the day and year first above written.

	
  LANDLORD:

  	
   

  	
  TENANT:

  
	
   

  	
   

  	
   

  
	
  Gateway S-8 LLLP

  	
   

  	
  Nova Telecommunications, Inc.

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  RA & DM, Inc.

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  	
   

  	
  Its:

  	
   

  

 

 

[Attach Amortization Schedule

of Termination Costs]

 

 

EXHIBIT D

Rules and Regulations

1.             The delivery, shipping, loading and
unloading of goods, wares, merchandise, equipment, supplies, fixtures and all
other items to and from the Leased Premises will be subject to the rules and
regulations Landlord may promulgate from time to time with respect to
deliveries and shipments.

2.             All garbage and refuse will be kept
in the kind of container specified by Landlord, and will be placed outside of
the Building for collection in the manner, in such containers and at the times
and places reasonably specified by Landlord. 
Tenant will not burn any trash or garbage of any kind in or around the
Leased Premises.

3.             No radio, speakers, television,
phonograph or other sound or similar device will be installed or operated in
the Leased Premises without Landlord’s prior written approval.  Tenant will prevent sounds emanating from the
Leased Premises from being heard outside the Leased Premises or otherwise
unreasonably disturbing or annoying other tenants.

4.             The plumbing facilities will not be
used for any purpose other than that for which they are constructed.  No foreign substance of any kind will be
thrown into the plumbing facilities.  The
expense of any breakage, stoppage or damage resulting from a violation of this
provision by Tenant or any of its servants, agents, invitees, employees and/or
licensees will be borne solely by Tenant.

5.             Tenant will not place a load upon
the floor of the Leased Premises exceeding the floor load per square foot area
which the floor of the Leased Premises has been designed to carry.

6.             Tenant will not permit anyone to
lodge, sleep or cook in the Leased Premises. 
Tenant is responsible for all persons whom it invites and/or admits to
the Leased Premises and will be liable to Landlord for all acts of such
persons.

7.             Landlord reserves to itself all
rights not granted to Tenant under this Lease, including, but not limited to,
the following:  (a) the right to
change the address of the Building, without liability to Tenant for so doing;
(b) the right to install and maintain signs on the exterior of the
Building; (c) the exclusive right to use or dispose of the use of the roof
of the Building; and (d) the right to grant to anyone the right to conduct
any particular business or undertaking in the Building.

8.             Tenant will not attach or place
awnings, antennas or other projections to the outside walls or any exterior
portion of the Building, without the prior written consent of Landlord.  No curtains, blinds, shades or screens shal1
be attached to or hung in, or used in connection with, any window or door of
the Leased Premises, without the prior written consent of Landlord.

9.             Tenant will not pile or place or
permit to be placed any goods on the sidewalks or parking lots in the front,
rear or sides of the Building or in a place in any manner so

 

 

as to block said sidewalks, parking lots and loading areas and/or not
to do anything that directly or indirectly will take away any of the rights of
ingress or egress or of light from any other tenant of Landlord in the Project.

10.           Tenant, Tenant’s servants, agents,
invitees, employees and/or licensees shall not park on, store on, or otherwise
utilize any parking or loading areas on the Real Property, except as shown on
Exhibit A and then only in the parking places designated by Landlord for such
parking and in accordance with such rules and regulations as Landlord may from
time to time promulgate with respect thereto.

11.           No animals of any kind shall be
brought into or kept in or about the Project.

 

 

EXHIBIT E

HVAC SYSTEM

PREVENTATIVE MAINTENANCE

AND

PARTS AND LABOR SERVICING SPECIFICATIONS

 

I.              Parts & Labor

The
intent of this program is to provide regularly scheduled maintenance with labor
and material for repair of electrically and mechanically operating components
under reasonable load conditions.  It
includes repairs resulting from malfunctions during normal operating conditions
and those found during maintenance on the equipment as listed below.

II.            Quarterly Inspections Shall be
Provided as Follows:

A.            General:  Performed at all quarterly inspections

1.                                       Replace all
filters as required

2.                                       Lubricate all
motors and bearings

3.                                       Adjust and/or
replace all fan belts

4.                                       Clean grilles,
etc., as required

B.            Spring and Summer:

1.                                       Check
refrigerant charge and/or temperature difference across evaporator coil

2.                                       Check
refrigerant piping for leaks with electronic leak detector

3.                                       Check all
operating and safety controls for cooling

4.                                       Check system
operation - (operating pressures, super heat, compressor running current,
condensate removal, temperatures, etc.)

5.                                       Clean condenser
and/or evaporator coil as required

6.                                       Check and
tighten all electrical connections at unit as required

C.            Fall and Winter:

1.                                       Check system
operation - (operating pressures, temperatures, burner sequences, etc.)

2.                                       Check all
operating and safety controls for heating

3.                                       Check and
tighten all electrical connections at unit as required

III.           Qualifications
of Contractors

All
contractors providing the services described above shall be qualified and
certified by an EPA-approved testing organization to work with refrigerants and
other chemicals.

 

 

IV.           Exclusions

1.                                       Any work beyond
the units such as ductwork, electrical power supply, peripheral equipment,
monitoring, energy controls, etc.

2.                                       The components
and associated material to replace compressors, heat exchanges, coils and coil
repairs, unit housing including cabinet panels, internal framing, metal
fabrications.

3.                                       Work beyond
normal working hours:  (7:00 a.m. to 5:00
p.m., Monday through Friday).

4.                                       Nuisance calls
including tripped breakers, improper thermostat settings, acceptable temperature
ranges, etc.

5.                                       Repairs
resulting from problems beyond our control including vandalism, fire, flood,
voltage inadequacies, etc.

6.                                       Modifications
or repairs caused by design or installation inadequacies.

7.                                       Repairs, loss
of use, or consequential damage resulting from problems beyond reasonable
control.

•                  Components that
may be obsolete will be repaired until such time as they are no longer
repairable and the equipment must be replaced. 
It is not the intent of this program to replace the entire unit once the
unit has exhausted its useful life and/or is no longer repairable.

•                  Due to the
potential for Federal regulations and taxation of fluorocarbons, charges
associated with such Federal policy changes may be levied.

•                  Repairs
requiring modifications due to part substitution caused by availability or
obsolescence will be charged including additional cost of components and time
for adaptation.

 

 

EXHIBIT F

Nova Telecommunications
Responsibilities

	
  Task

  	
   

  	
  Deadline

  
	
  Execute Lease

  	
   

  	
  July 24, 1998

  
	
   

  	
   

  	
   

  
	
  Approve site plan and building footprint

  	
   

  	
  July 24, 1998

  

 

Tenant
shall respond promptly and in reasonable detail to requests from Landlord for
building design information.  Unless
stated otherwise in such request from Landlord, Tenant shall be deemed to have
approved such particular design specifications unless a reasonably detailed
response is provided to Landlord within five (5) business days after submission
of same to Tenant.

If
Tenant selects Manekin Corporation to perform the Tenant Improvements and
provided Tenant meets the following task deadlines, and subject to force
majeure, Manekin Corporation has represented to Landlord that the Leased
Premises will be able to be occupied by Tenant for commencement of its business
by April 24, 1999.

	
  *Hire interior design firm

  	
   

  	
  October 7,
  1998

  
	
   

  	
   

  	
   

  
	
  *Approve
  interior design

  	
   

  	
  November 22,
  1998

  
	
   

  	
   

  	
   

  
	
  *Waive
  cancellation right or provide additional security pursuant to Section 1 (g)
  of Lease

  	
   

  	
  November 22,
  1998

  

 

 

EXHIBIT G

Form of Lien Waiver

Final Release of Lien

WHEREAS,
WE THE UNDERSIGNED have furnished materials and/or performed labor for the
account of Gateway S-8 LLLP (“Owner”) and/or Nova Telecommunications, Inc. (“Tenant”)
for the construction of certain tenant improvements situated on the property
known as Parcel S-8, having a street address of 
_____________________, Columbia, Maryland and have agreed to release all
liens which we or any of us, have or might have on the said land and building
by reason of the premises.  NOW THESE
PRESENT WITNESS, the subscribers for and in consideration of the premises, and
of One Dollar to each of us paid, the receipt whereof is hereby acknowledged,
have remised, released and forever quit-claim unto said and to its successors
and assigns, all and all manner of liens, claims and demands whatsoever, which
we, or any or either of us now have or could or might have on or against the
said building and land by reason of the premises for materials and/or labor
furnished on this building for the account of Owner and/or Tenant so that the
said Owner and Tenant and their successors and assigns, and all other persons
interested therein, shall and may have, hold and enjoy the same freed and
discharged from all liens, claims and demands whatsoever, which we, or any or
either of us, now have or might could have, on or against the same if these
presents had not been made.  IN WITNESS
WHEREOF, we have hereunto set our hands and seals the ____ day of
____________________, 1998.

	
   

  	
   

  	
  (SEAL)

  
	
   

  	
   

  
	
  Signed, Sealed and Delivered in the

  	
   

  
	
  Presence of: 

  	
   

  	
   

  
					

 

 

[Figure]

 

AMENDMENT
TO LEASE AGREEMENT

THIS
AMENDMENT TO LEASE AGREEMENT (this “Amendment”) made
this   25   day of   October  ,
1999, by and between Columbia Gateway S-28, L.L.C. (“New Landlord”), and Corvis
Corporation, formerly known as Nova Telecommunications, Inc. (“Tenant”).

W
I T N E S S E T H:

WHEREAS, Gateway 62
LLLP, formerly known as Gateway S-8, LLLP (“Old Landlord”) and Tenant entered
into that certain Lease Agreement dated August 11, 1998 (the “Lease”) for the
entire building on Parcel S-28, a portion of which was formerly known as Parcel
S-8, in the Columbia Gateway Park, Columbia, Maryland (the “Leased Premises”);
and

WHEREAS, Old Landlord
and Tenant entered into that certain Lease Commencement Agreement dated May 28,
1999 setting forth their agreements as to the term of the Lease and certain
other matters, all as more particularly set forth therein; and

WHEREAS, the Leased
Premises has been granted and conveyed by Old Landlord to New Landlord, and, in
connection therewith, the Lease has been assigned by Old Landlord to New
Landlord; and

WHEREAS, State Farm
Life Insurance Company (the “Lender”) has made a loan of Four Million Seven
Hundred Thousand Dollars ($4,700,000.00) (the “Loan”) to finance New Landlord’s
acquisition of the Leased Premises, which Loan is secured by, among other
things, a lien on the Leased Premises; and

WHEREAS, the Lender
has required the execution of this Amendment as a condition of the Loan.

NOW,
THEREFORE, IN CONSIDERATION OF the Leased Premises as
described in the Lease and the covenants set forth therein, and for other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, New Landlord and Tenant agree as follows:

1.             Upon a termination of the Lease in
accordance with the provisions of Rider No. 2 thereof, Tenant shall be
obligated to pay to Lender in one lump sum that portion of the then outstanding
Termination Costs consisting of the “Landlord’s Contribution” (as defined in
Section 1(d) of the Lease), architectural fees, consulting fees, reasonable
legal fees, leasing commissions, and any other reasonable costs and expenses
incurred by New Landlord in connection with the Lease.  Lender shall not be entitled to receive any
portion of Termination Costs associated with the “Additiona1 Contribution” (as
defined in Section 1(f) of the Lease) toward tenant improvement costs.  Lender shall only be entitled to the “Unamortized
Termination Costs” (described in Rider No. 5 of the Lease) if Lender has
incurred such “Unamortized Termination Costs” and such costs are not reimbursed
by 7015 Albert Einstein Drive, L.L.C. or Robert E. Smith.

 

 

2.             Except as amended herein, the Lease
shall remain in full force and effect and is hereby ratified and confirmed.

IN
WITNESS WHEREOF, the parties hereto have executed this Amendment as
of the day and year first above written.

	
   

  	
  NEW
  LANDLORD:

  
	
   

  	
   

  	
   

  
	
   

  	
  COLUMBIA
  GATEWAY S-28, L.L.C.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Mark D. Knobloch

  
	
   

  	
  Name:

  	
  Mark
  D. Knobloch

  
	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TENANT:

  
	
   

  	
   

  	
   

  
	
   

  	
  CORVIS
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Kim D. Larsen

  
	
   

  	
  Name:

  	
  Kim
  D. Larsen

  
	
   

  	
  Title:

  	
  General
  Counsel

  
				

 

2

 

CONSENT
TO ASSIGNMENT AND

SECOND AMENDMENT OF LEASE AGREEMENT

THIS
CONSENT TO ASSIGNMENT AND SECOND AMENDMENT OF LEASE AGREEMENT (this
“Agreement”) is made as of the   31   day of
December, 2001, by and among CORVIS CORPORATION,
a Delaware corporation, successor-in-interest to Nova Telecommunications, Inc.
(hereinafter “Original Tenant”), CORVIS OPERATIONS, INC.,
a Delaware corporation (hereinafter “Tenant”) and COLUMBIA
GATEWAY S-28, L.L.C., a Maryland limited liability company,
successor-in-interest to Gateway 62 LLLP, a Maryland limited liability limited
partnership, formerly known as Gateway S-8 LLLP (hereinafter “Landlord”).

Introduction

A.            Gateway S-8 LLLP (“Gateway S-8”) and
Nova Telecommunications, Inc. “Nova”) entered into an Agreement of Lease dated
August 11, 1998 (the “Original Lease”) for a building to be constructed on land
now known as 7015 Albert Einstein Drive, in the Columbia Gateway Park, located
in Howard County, Maryland.

B.            Gateway S-8 subsequently changed its
name to Gateway 62 LLLP (“Gateway 62”).

C.            Landlord acquired all of Gateway
62’s rights under the Original Lease.

D.            Nova subsequently changed its name
to Corvis Corporation.

E.             Landlord and Original Tenant
entered into an Amendment to Lease Agreement dated October 25, 1999 (the “First
Amendment”) whereby Landlord and Original Tenant agreed upon the allocation of
certain payments upon the termination of the Original Lease pursuant to Rider
No. 2 thereof.

F.             The Original Lease as amended by
the First Amendment is hereinafter referred to as the “Lease”.

G.            The Original Tenant desires to
assign its interest in the Lease to Tenant and Tenant desires to acquire the
Original Tenant’s interest in the Lease and assume all its obligations
thereunder (the “Assignment”), effective as of the 29th day of December, 2001
(the “Effective Date”).

H.            Under Section 15 of the Lease, an
assignment of the Lease may not occur without the prior written consent of
Landlord, and satisfaction of all other provisions of Section 15, including
that Original Tenant will continue to remain primarily liable under the Lease
after any assignment and that all of Landlord’s reasonable legal costs incurred
in connection with such assignment are paid by Original Tenant.

I.              Notwithstanding Section 15 of the
Lease, Landlord is willing to consent to the Assignment and to modify and amend
certain provisions respecting the Lease, on the terms and conditions set forth
below.

 

-1-

 

J.             Unless otherwise defined herein or
unless the context requires a contrary meaning, all capitalized terms used in
this Agreement shall have the meanings given to them in the Lease.

NOW,
THEREFORE, in consideration of the foregoing Introduction, which is deemed a
substantive part of this Agreement, the covenants of the parties herein and in
the Lease and other good and valuable consideration, the receipt and adequacy
of which are hereby acknowledged, Landlord, Original Tenant, and Tenant hereby
agree as follows:

1.             CONSENT OF LANDLORD.  In consideration of the foregoing, Landlord
hereby consents to the Assignment by Original Tenant to Tenant, but upon the
express condition that (i) neither such consent nor the collection of rent
from Tenant shall be deemed a waiver or relinquishment of the covenant against
any future assignment or subletting; (ii) Original Tenant shall continue
to remain primarily liable for all of its liabilities and obligations arising
under the Lease notwithstanding the Assignment; and (iii) from and after
the Effective Date, and continuing for the balance of the Lease Term, unless
otherwise stated therein, Tenant shall also be liable and responsible for all
“Tenant’s” liabilities and obligations as are set forth in the Lease.

2.             AUTHORITY.  Original Tenant represents and warrants that
(i) it is a corporation duly organized, validly existing, and in good
standing under the laws of the State of Delaware, and qualified to transact business
in the State of Maryland; (ii) the name and address of the resident agent
of Original Tenant in Maryland are:  The
Corporation Trust Incorporated, 300 E. Lombard Street, Baltimore, Maryland
21202; (iii) it has full power and authority to conduct and transact its
business as such business is conducted and transacted as of the date of this
Agreement in the State of Maryland and to enter into this Agreement; and
(iv) this Agreement is executed in its name by a duly authorized officer
of Original Tenant and that this Agreement has been approved by all necessary
parties and it and the Lease are binding upon and enforceable against Original
Tenant in accordance with the terms of this Agreement and the Lease.

Tenant
represents and warrants that (i) it is a corporation duly organized,
validly existing, and in good standing under the laws of the State of Delaware
and qualified to transact business in the State of Maryland; (ii) for
purposes of service of process, the name and address of the resident agent of Tenant
in Maryland are:  The Corporation Trust
Incorporated, 300 E. Lombard Street, Baltimore, Maryland 21202; (iii) it
has full power and authority to conduct and transact its business as such
business is conducted and transacted as of the date of this Agreement in the
State of Maryland and to enter into this Agreement, and (iv) this
Agreement is executed in its name by a duly authorized officer of Tenant and
that this Agreement has been approved by all necessary parties and it and the
Lease are binding upon and enforceable against Tenant in accordance with the
terms of this Agreement and the Lease.

3.             MODIFICATION OF LEASE AND
LIABILITY OF ORIGINAL TENANT. 
Original Tenant acknowledges that Landlord and Tenant may, by mutual
agreement of the parties, change, modify, or amend the Lease in any way,
including, but not limited to, payment of Basic Annual Rent and additional rent
under the Lease, and that further assignments may be made, without notice to or
consent of Original Tenant and without in any manner releasing or relieving
Original Tenant from all of its liabilities and obligations under the Lease for
the

 

-2-

 

balance of the Lease Term
notwithstanding the Assignment or such other modifications.  In the event of such modifications, however,
Original Tenant’s liability shall be no greater than those set forth in the
Lease immediately prior to the Effective Date.

4.             AMENDMENTS TO LEASE.  From and after the Effective Date, the Lease
shall be amended as follows:

a.             Notices.  Section 22 of the Lease shall be deleted and
replaced with the following:

“22.         Notices.  Except as otherwise provided in this Lease,
any requirement for a notice, demand or request under this Lease will be
satisfied by a writing (a) hand delivered with receipt; (b) mailed by
United States registered or certified mail or Express Mail, return receipt
requested, postage prepaid; or (c) sent by Federal Express or any other
nationally recognized overnight courier service, and addressed:  (i) if to Landlord, c/o Mark D.
Knobloch, 10706 Beaver Dam Road, Suite 503, Hunt Valley, Maryland, 20130-2207,
with a copy to Manekin, LLC, 7061 Columbia Gateway Drive, Columbia, Maryland
21046, Attention:  Property
Management with a copy to Ann Clary Gordon, Esquire c/o Shapiro Sher &
Guinot, 36 South Charles Street, 20th Floor, Baltimore, Maryland 21201;
(ii) if to Original Tenant, at 7063 Columbia Gateway Drive, P.O. Box 9400,
Columbia, Maryland 21046-9400, with a copy to General Counsel at 7063 Columbia
Gateway Drive, P.O. Box 9400, Columbia Maryland 21046-9400; and (iii) if
to Tenant, at the Leased Premises.  All
notices that are sent in accordance with this Section 22 will be deemed
received by the other party on the earliest of the following applicable time
periods:  (a) three business days
after being mailed in the aforesaid manner; (b) the date the return
receipt is executed; (c) the date delivered as documented by the overnight
courier service or the hand delivery receipt, (d) the date of attempted
delivery in the case of inability to deliver because of change of address of
which no notice was given hereunder; or (e) the date of attempted delivery
in the case of refusal to accept.  All
rental payments and other charges payable by Tenant or Original Tenant under
this Lease wi1l be delivered to Landlord at Manekin’s address set forth
above:  Attention:  Accounting Department.  Any party may designate a change of address
by written note to the other parties.”

5.             REAFFIRMATION.  Tenant and Original Tenant hereby reaffirm
and restate, and agree to be bound by the covenants, promises, representations
and agreements set forth in the Lease (except to the extent that they are
expressly superseded by this Agreement) as if made herein.

6.             BINDING ON SUCCESSORS.  The terms and conditions contained in this
Agreement shall bind and inure to the benefit of Landlord, Original Tenant and
Tenant, and their respective successors and permitted assigns.

 

-3-

 

7.             EXECUTION OF COUNTERPARTS.  This Agreement may be executed in several
counterparts, each of which shall be an original and all of which shall
constitute one and the same instrument.

8.             EFFECT OF AGREEMENT.  The Lease shall be amended and in full force
and effect in such respects as are set forth in this Agreement, and all other
provisions, terms, and conditions of and to the Lease shall in all respects
remain as set forth in the Lease, in full force and effect.

IN
WITNESS WHEREOF, Landlord, Tenant, and Original Tenant have respectively signed
and sealed this Agreement as of the day and year first above written above,
intending to be bound as of the Effective Date.

	
  WITNESS/ATTEST:

  	
   

  	
  CORVIS
  CORPORATION, a Delaware

  
	
   

  	
   

  	
  corporation

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/
  Nancy Faber

  	
   

  	
  By:

  	
  /s/
  Kim D. Larsen

  	
  (SEAL)

  
	
   

  	
   

  	
  Name:

  	
  Kim
  D. Larsen

  
	
   

  	
   

  	
  Title:

  	
  SVP
  and General Counsel

  
	
   

  	
   

  	
   

  	
  ORIGINAL TENANT

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CORVIS OPERATIONS, INC., a Delaware

  
	
   

  	
   

  	
  corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/
  Nancy Faber

  	
   

  	
  By:

  	
  /s/
  Kim D. Larsen

  	
  (SEAL)

  
	
   

  	
   

  	
  Name:

  	
  Kim
  D. Larsen

  
	
   

  	
   

  	
  Title:

  	
  SVP
  + General Counsel

  
	
   

  	
   

  	
   

  	
  TENANT

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  COLUMBIA GATEWAY S-28, L.L.C., a

  
	
   

  	
   

  	
  Maryland
  limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/
  Carol Klauss

  	
   

  	
  By:

  	
  /s/
  Mark D. Knobloch

  	
  (SEAL)

  
	
   

  	
   

  	
  Name:

  	
  Mark
  D. Knobloch

  
	
   

  	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
   

  	
  LANDLORD

  

 

[NOTARIES ON NEXT PAGE]

 

-4-

 

STATE
OF   MARYLAND  , CITY/COUNTY OF   ANNE
ARUNDEL  , TO WIT:

I
HEREBY CERTIFY that on this   17th   day of   January  ,
2002, before me, the subscriber, a Notary Public of the aforesaid
jurisdiction, personally appeared   Kim D. Larsen  ,
the   Sr VP + General Counsel   of CORVIS CORPORATION, a Delaware corporation, Original Tenant,
and s/he acknowledged the foregoing Consent to Assignment and Second Amendment
of Lease Agreement to be the act and deed of said body corporate.

AS
WITNESS, my hand and Notarial Seal.

	
   

  	
  /s/
  Donna M. Fellins

  
	
   

  	
  Notary
  Public

  	
   

  
	
   

  	
  My
  Commission Expires:

  	
  3-12-2003

  

 

STATE
OF   MARYLAND  , CITY/COUNTY OF   ANNE
ARUNDEL  , TO WIT:

I
HEREBY CERTIFY that on this   17th   day of   January  ,
2002, before me, the subscriber, a Notary Public of the aforesaid
jurisdiction, personally appeared   Kim D. Larsen  ,
the   Sr VP + General Counsel   of CORVIS OPERATIONS, INC., a Delaware corporation, Tenant, and
s/he acknowledged the foregoing Consent to Assignment and Second Amendment of
Lease Agreement to be the act and deed of said body corporate.

AS
WITNESS, my hand and Notarial Seal.

	
   

  	
  /s/
  Donna M. Fellins

  
	
   

  	
  Notary
  Public

  	
   

  
	
   

  	
  My
  Commission Expires:

  	
  3-12-2003

  

 

STATE
OF   MARYLAND  , CITY/COUNTY OF   CARROLL  ,
TO WIT:

I
HEREBY CERTIFY that on this   24th   day of   January  ,
2002, before me, the subscriber, a Notary Public of the aforesaid
jurisdiction, personally appeared   Mark D. Knobloch  ,
an authorized person for COLUMBIA GATEWAY S-28,
L.L.C., a Maryland liability company, Landlord, and s/he
acknowledged the foregoing Consent to Assignment and Second Amendment of Lease
Agreement to be the act and deed of said limited liability company.

AS
WITNESS, my hand and Notarial Seal.

	
   

  	
  /s/
  Carol Klauss

  
	
   

  	
  Notary
  Public

  	
   

  
	
   

  	
  My
  Commission Expires:

  	
  06-01-05

  

 

-5-

THIRD AMENDMENT TO LEASE AGREEMENT, NON-DISTURBANCE

AND ATTORNMENT AGREEMENT

This
Third Amendment to Lease Agreement, Non-Disturbance and Attornment Agreement
(this “Third Amendment”)
is executed as of this ___ day of June, 2006 (the “Effective Date”) by and
between BROADWING CORPORATION, a Delaware corporation (f/k/a
Corvis Corporation) (“Tenant”),
COLUMBIA GATEWAY S-28, L.L.C., as
successor to Gateway S-8, LLLP (“Landlord”) and Osiris Therapeutics, Inc., a Delaware
corporation (“Sublessee”).

R E  C  I  T  A  L  S:

A.            Gateway S-8 LLLP (“Original Landlord”) and
Nova Telecommunications, Inc. (“Original Tenant”) entered into that certain Lease
Agreement dated August 11, 1998, as amended by that certain Amendment to
Lease Agreement dated October 25, 1999, and that certain Consent to Assignment
and Second Amendment to Lease Agreement dated December 31, 2001 (collectively, the
“Lease”)
concerning the property known as S-8 in the Columbia Gateway Park located in
Howard County, Maryland.

B.            Tenant, through a series of transactions,
has succeeded to the rights of Original Tenant under the Lease.

C.            Landlord, through a series of name
changes, has succeeded to the rights of Original Landlord under the Lease.

D.            Tenant desires to sublease its
interest in the Leased Premises (as defined in the Lease) pursuant to that
certain Sublease Agreement (the “Sublease”) to be entered into simultaneously herewith
by and between Tenant and Sublessee.

E.             Landlord and Tenant desire to
execute this Third Amendment to among other things, obtain Landlord’s approval
of the Sublease and amend the Lease as provided herein.

NOW,
THEREFORE, for valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties hereto agree as follows:

1.             Capitalized Terms.  Unless otherwise expressly defined herein,
capitalized terms used herein shall bear the same meaning ascribed to them in
the Lease.

2.             Consent to Sublease.  Landlord hereby irrevocably consents and
approves to the Sublease with Sublessee and irrevocably waives (a) the thirty
(30) day notice of any Assignment called for under the Lease, (b) any
termination rights held by Landlord arising from the Sublease and/or
Assignment, and (c) its right to withhold its consent to the Sublease.

3.             Use.  The first paragraph of
Section 3 of the Lease is hereby deleted and the following inserted in lieu
thereof:  “Landlord and Tenant expressly
agree that the Leased Premises shall be used or occupied by Tenant solely for
general office space, administrative purposes, laboratory, clean rooms and any
and all other legal purposes to include any related or ancillary use which is
suitable for a modern suburban office or flex building in Howard County,
Maryland, all in accordance with applicable zoning regulations and for no other
purpose.  For purposes of this Lease, the
term “general office space” shall not include use as a school, college,
university or educational institution of any type, use for any purpose which is
not consistent with the operation of the Building as a first-class office building,
use as an

 

1

 

recruitment or temporary
help service or agency, or any use involving regular traffic by the general
public.”

4.             Alterations.  In exercising its reasonable discretion
pursuant to Section 6(a) of the Lease, Landlord recognizes that Sublessee will
be making structural alterations to the Leased Premises customarily made in
fitting-out laboratory space in accordance with FDA GMP (good manufacturing
practices) and associated research and development of laboratory space and
Landlord’s standard of reasonableness for approval shall be based on the
foregoing standards; provided, however, Sublesee shall make no alterations or
improvements to the Leased Premises impairing or weakening the structural integrity
of the building thereon.

5.             HVAC.  Notwithstanding anything to the contrary
contained in the Lease, Sublessee shall control and maintain the HVAC system in
the Leased Premises.

6.             Event of Default by
Sublessee. 
Landlord acknowledges that Sublessee will be assuming all of Tenant’s
obligations under the Lease in accordance with the terms of the Sublease except
for the payment of Basic Annual Rent (as more particularly described in the
Sublease).  Landlord agrees to provide
Tenant with prompt written notice of any default under the Lease by Sublessee at
the address set forth in the notice section below.  In addition, in the event Landlord is
accepting Lease rental payments directly from Sublessee, Landlord shall
simultaneously provide Tenant with written notice of any notice of default sent
to Sublessee under the Lease, and Tenant shall be afforded the reasonable
opportunity to cure any monetary default under the Lease and be provided with
the time necessary to access the Leased Premises and cure any non-monetary
default required to be cured by Landlord under the Lease.

7.             Event
of Default by Tenant under Sublease.  Sublessee will notify
Landlord in accordance with Section 7 hereof of any default of Tenant which
would entitle Sublessee to cancel the Sublease or abate the rent payable
thereunder, and agrees that notwithstanding any provision of the Sublease, no
notice of cancellation thereof, nor any abatement shall be effective unless
Landlord has received the notice aforesaid and has failed within thirty (30)
days of the date thereof to cure or if the default cannot be cured within thirty
(30) days has failed to commence and to diligently prosecute the cure of Tenant’s default which gave rise to such right
of cancellation or abatement.

8.             Event of
Default by Tenant under the Lease.  Landlord will notify Sublessee in accordance
with Section 7 hereof of any default of Tenant under the Lease at the same time
that notice is provided to Tenant and Sublessee shall have the right to cure
such default within the time periods provided to Tenant in the Lease.  If the
default is a failure to pay any amounts owed under the Lease, Landlord agrees
that if such default is not cured within the time frame provided for in the
Lease, Landlord will first draw on the Security Letter of Credit provided by
Tenant under the Lease.

9.             Estoppel.  Landlord and Tenant acknowledge and agree
that (a) no default under the Lease exists as of the Effective Date, (b) the
undersigned knows of no fact or circumstance existing which, with the passage
of time, would constitute a default under the Lease, (c) the Lease Commencement
Date is March 22, 1999 and the Lease terminates on May 31, 2009, and
(d) any alterations to the Leased Premises made prior to the date hereof are
not required to be removed at the end of the term of the Lease.

10.           Letter of Credit.  Upon execution of a binding lease agreement
by and between Landlord and Sublessee (the “COPT-Osiris Lease
Agreement”), Landlord agrees to accept a reduced Security Letter
of Credit in the amount of $1,200,000. 
On the date that Sublessee has waived its termination rights under the
COPT-Osiris Lease Agreement (the “Security Letter of Credit
Reduction Date”), Tenant shall have the right to reduce the
Security Letter of Credit to $750,000.00. 
Landlord shall

 

2

 

deliver the initial Security
Letter of Credit to Tenant to effectuate the replacement of the Security Letter
of Credit.  Failure by Tenant to replace
the Security Letter of Credit within four (4) business days after delivery of
the original Security Letter of Credit shall constitute an Event of Default
under the Lease.

On
or before the date which is twelve (12) months after the Security Letter of
Credit Reduction Date, Landlord shall use its good faith efforts, in its sole
discretion, to evaluate the financial strength and business performance of
Sublessee to consider a further reduction of the Security Letter of Credit.

11.           Waiver of
Termination/Renewal Rights.  Upon execution of this Third Amendment,
Tenant hereby waives its rights to (i) terminate the Lease pursuant to Riders
No. 1 and 2 of the Lease, and (ii) renew the term of the Lease as provided in
Rider No. 3 of the Lease.

12.           Non-Disturbance.  So long as Sublessee is not in default (beyond
any period given Sublessee to cure such default) in the payment of rent
or additional rent or in the performance of any of the terms, covenants or
conditions of the Sublease on Sublessee’s
part to be performed, Sublessee’s possession of the Premises and
Sublessee’s rights and privileges under the Sublease, or any extensions or
renewals thereof which may be effected in accordance with any option therefor
in the Sublease, shall not be diminished or interfered with by Landlord and
Sublessee’s occupancy of the Premises shall not be disturbed by Landlord for
any reason whatsoever during the term of the Sublease or any extensions or
renewals thereof.

13.           Landlord
Not Bound.  If
Landlord shall succeed to the interest of Tenant under the Sublease, Landlord
shall be bound to Sublessee under all terms, covenants and conditions of
the Sublease thereafter arising, and Sublessee shall, from and after Landlord’s
succession to the interest of Tenant under the Sublease, have the same remedies
against Landlord for the breach of an
agreement contained in the Sublease that Sublessee might have had under the Sublease against Tenant if Landlord had not
succeeded to the interest of Tenant; provided, however, Landlord
shall not be:

(a)           liable for any act or omission of any
prior landlord (including Tenant);

(b)           subject
to any offsets or defenses which Sublessee might have against any prior landlord
(including the Tenant);

(c)           bound
by any rent or additional rent which Sublessee might have paid for more than the
current month to any prior landlord (including Tenant);

(d)           bound
by any amendment or modification of the Sublease made without Landlord’s written consent;

(e)           obligated
to construct or finish the construction or to renovate or finish the renovation of
the Premises or any other property described in the Sublease;

(f)            bound
to expend any sums pursuant to any agreement by Sublessee under the Sublease to pay any tenant allowance,
construction allowance or other sum owing Sublessee pursuant to the
Sublease;

(g)           required
to expend money for restoration in the event of a casualty or condemnation
except as required under the Lease;

 

3

 

(h)           bound
by any obligation to make any payment to Sublessee under the Sublease  which was required to be made prior to
the time Landlord succeeded to any prior landlord’s interest (without implying
the obligation to make a future payment);

(i)            accountable
for any monies deposited with any prior landlord (including security deposits), except to the extent such monies are actually received by
Landlord in segregated cash amounts identified to Landlord in
writing as such at the time received;

(j)            liable
for any obligation with respect to any representations or warranties of any nature set
forth in the Sublease or otherwise, including, but not limited to,
representations or warranties relating to any latent or patent defects in
construction with respect to the Leased Premises or any other property, Tenant’s
title or compliance of the Premises or any other property with applicable
environmental, building, zoning or other
laws, including, but not limited to, the Americans with Disabilities Act and
any regulations pursuant thereto; or

(k)           bound by any assignment of the
Sublease or any encumbrance of Sublessee’s interest thereunder or any sublet
thereunder (except if expressly permitted without Tenant’s consent under the terms of the Sublease) that is made without
Landlord’s prior written consent.

14.           Effect on Rights and Remedies.  Nothing
herein contained is intended, nor shall it be construed, to abridge or
adversely affect any right or remedy of: (a) Tenant under the Sublease,
or any subsequent landlord, against the Sublessee in the event of any default
by Sublessee (beyond any period expressed in the Sublease within which
Sublessee may cure such default) in the
payment of rent or in the performance or observance of any of the terms,
covenants or conditions of the Sublease on Sublessee’s part to be
performed or observed; or (b) Sublessee under the Sublease against the original
or any prior landlord in the event of any default by the original landlord to
pursue claims against such original or prior landlord whether or not such claim
is barred against Landlord or a subsequent landlord.

15.           Notices.  Whenever Landlord or Tenant shall desire to
give or serve on the other any notice, demand, request or other communication
with respect to the Lease, each such notice, demand, request or other
communication shall be in writing and shall be effective only if the same is (a)delivered
by personal service (including telex, telecopier, express or courier service),
in which event it shall be effective upon delivery, or (b) mailed by
registered or certified mail, return receipt requested, postage prepaid (in
which event it shall be effective three days after mailing), addressed as
follows:

	
   

  	
  If to Tenant:

  	
  Broadwing Corporation

  
	
   

  	
   

  	
  c/o Broadwing
  Communications, LLC

  
	
   

  	
   

  	
  1122 Capital of Texas
  Highway South

  
	
   

  	
   

  	
  Austin, Texas 78746

  
	
   

  	
   

  	
  Attention: Susan Ellis

  
	
   

  	
   

  	
  Facsimile: (512) 742-4101

  
	
   

  	
   

  	
   

  
	
   

  	
  With a copy to:

  	
  Broadwing Corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  c/o Broadwing
  Communications, LLC

  
	
   

  	
   

  	
  1122 Capital of Texas
  Highway South

  
	
   

  	
   

  	
  Austin, Texas 78746

  
	
   

  	
   

  	
  Attention: Legal
  Department

  
	
   

  	
   

  	
  Facsimile: (512) 742-4119

  

 

4

 

	
   

  	
  If to Landlord (prior to
  7/17/06):

  
	
   

  	
   

  
	
   

  	
   

  	
  Columbia Gateway S-28,
  L.L.C.c/o Corporate Office Properties Trust

  
	
   

  	
   

  	
  8815 Centre Park Drive

  
	
   

  	
   

  	
  Columbia, Maryland 21045

  
	
   

  	
   

  	
  Attention: Catherine Ward

  
	
   

  	
   

  	
  Facsimile: (410) 740-1174

  
	
   

  	
   

  	
  Email: cathy.ward@copt.com

  
	
   

  	
   

  	
   

  
	
   

  	
  With a copy to (prior to
  7/17/06)

  
	
   

  	
   

  
	
   

  	
   

  	
  Corporate Office
  Properties Trust

  
	
   

  	
   

  	
  8815 Centre Park Drive

  
	
   

  	
   

  	
  Columbia, Maryland 21045

  
	
   

  	
   

  	
  Attention: Karen Singer

  
	
   

  	
   

  	
  Facsimile: (410) Email:
  karen.singer@copt.com

  
	
   

  	
   

  	
   

  
	
   

  	
  If to Landlord (after
  7/17/06):

  
	
   

  	
   

  
	
   

  	
   

  	
  Columbia Gateway S-28,
  U.S.C.

  
	
   

  	
   

  	
  c/o Corporate Office
  Properties Trust

  
	
   

  	
   

  	
  6711 Columbia Gateway
  Drive, Suite 300

  
	
   

  	
   

  	
  Columbia, Maryland 21046

  
	
   

  	
   

  	
  Attention: Catherine Ward

  
	
   

  	
   

  	
  Facsimile: 443-285-7650

  
	
   

  	
   

  	
  Email: cathy.ward@copt.com

  
	
   

  	
   

  	
   

  
	
   

  	
  With
  a copy to (after 7/17/06)

  
	
   

  	
   

  
	
   

  	
   

  	
  Corporate Office
  Properties Trust

  
	
   

  	
   

  	
  6711 Columbia Gateway
  Drive, Suite 300

  
	
   

  	
   

  	
  Columbia, Maryland 21046

  
	
   

  	
   

  	
  Attention: Karen Singer

  
	
   

  	
   

  	
  Facsimile: (443) 285-7652

  
	
   

  	
   

  	
  Email: karen.singer@copt.com

  

 

5

 

	
   

  	
  If
  to Sublesee:

  	
  Osiris
  Therapeutics, Inc.

  
	
   

  	
   

  	
  2001
  Aliceanna Street

  
	
   

  	
   

  	
  Baltimore,
  Maryland 21231-3043

  
	
   

  	
   

  	
  Attention:
  Cary Claiborne

  
	
   

  	
   

  	
  Email:
  cclaiborne@osiristx.com

  
	
   

  	
   

  	
   

  
	
   

  	
  With
  a copy to:

  	
  Osiris
  Therapeutics, Inc.

  
	
   

  	
   

  	
  at
  the Leased Premises

  
	
   

  	
   

  	
  Attention:
  Cary Claiborne

  
	
   

  	
   

  	
  Email:
  cclaiborne@osiristx.com

  

 

16.           Counterparts.  This Third Amendment may be executed in
counterparts and via facsimile, a fully executed copy of which may be entered
into evidence as proof of same.

17.           Governing Law.  This Third Amendment shall be governed by the
laws of the State of Maryland, excluding its choice of law provisions.

18.           Modification.  Landlord and Tenant agree that the Lease may
not be modified except by written agreement executed by and between the
parties.  Except for this Third Amendment,
as provided in Recital A to this Third Amendment, and for the information
contained in the Lease Commencement Agreement executed by Original Landlord and
Tenant, the Lease has not been modified or amended and remains in full force
and effect.

19.           SNDA.  Within ten (10) business days of the date of
this Third Amendment, Landlord shall seek to obtain from its mortgage lender
for the Premises a subordination, non-disturbance and attornment agreement in a
form acceptable to Tenant.

20.           Signage.  Notwithstanding anything to the contrary
contained in the Lease, Sublessee, at Sublessee’s expense, shall have the
right to install an exterior back-lighted sign or back-lighted logo on the top
ribbon of the Building and a monument sign at the entrance to the Building,
provided that (i) there is no default (subject to notice and cure periods)
outstanding at anytime, (ii) Sublessee obtains Landlord’s prior written
approval, such approval not to be unreasonably withheld, with regard to the
size, location, and method of installation of the signage, (iii) the Lease has
not been amended to reduce the area of the Leased Premises, and (iv) Sublessee
remains open for business in the Leased Premises.  Sublessee, at Sublessee’s expense, shall
maintain the signage, and obtain all required permits from any governmental
authorities.  At the expiration or sooner
termination of this Lease, Sublessee shall remove the exterior signage on the
Building and restore the Building’s surface to that condition which existed
immediately prior to the installation of the signage.  In addition, if, after installation of the
signage, any of the conditions set forth in subsections (i) through (iv)
inclusive of the first sentence of this paragraph are not satisfied, Sublessee,
at Sublessee’s expense, shall remove the signage upon fifteen (15) days’
advance written notice from Landlord and restore the Building’s surface to that
condition which existed immediately prior to the installation of the signage.

21.           Telecommunications
Equipment.  Sublessee shall
have the non-exclusive right to enter upon and utilize the roof of the Building
for the purposes of installing, maintaining and repairing any equipment or
utilities required in its operation of its business in the Leased Premises;
provided that  (i) such equipment is used
solely in connection with Sublessee’s

 

6

 

business in the Leased
Premises and is not available for use by third-parties, (ii) Sublessee submits
to Landlord for Landlord’s prior written approval, such approval not to be
unreasonably withheld, conditioned or delayed, the desired location on the roof
to install the equipment and the make, model and specifications of the
equipment, (iii) Sublessee, at Sublessee’s expense, shall install, maintain and
remove the equipment  in coordination with Landlord’s rooftop consultant;
provided, however, that Landlord, at Sublessee’s expense, shall have the right,
but not the obligation, to install, maintain and/or remove the equipment, (iv) Sublessee
shall indemnify and hold Landlord, its successors, assigns, agents, licensees
and invitees harmless from any and all damages, costs, claims, expenses,
actions (including reasonable attorneys’ fees) in connection with the
equipment, unless resulting from Landlord’s negligence; and (v) Sublessee shall
indemnify and hold Tenant, its successors, assigns, agents, licensees and
invitees harmless from any and all damages, costs, claims, expenses, actions
(including reasonable attorneys’ fees) in connection with the equipment, unless
resulting from Tenant’s negligence.  Upon
the expiration or sooner termination of the Term, Sublessee shall be
responsible for removing the equipment from the roof and for any costs to
repair the damage to the roofing system resulting from such removal.

(SIGNATURE PAGE FOLLOWS)

 

7

 

IN
WITNESS WHEREOF, the parties have executed this Agreement as of the Effective
Date.

	
  LANDLORD: 

  	
   

  	
  COLUMBIA GATEWAY S-28, L.L.C., a Maryland
  limited liability company 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Roger A. Waesche, Jr.

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
  SUBLESSOR: 

  	
   

  	
  BROADWING CORPORATION, a Delaware
  corporation (f/k/a Corvis Corporation)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
  Date:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SUBLESSEE 

  	
   

  	
  OSIRIS THERAPEUTICS, INC., a Delaware
  corporation

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
  Date:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}]]