Document:

Exhibit 10.5

 

[CURIS Letterhead]

 

August 17, 2004

 

VIA HAND DELIVERY

 

Richard P. Shea

Vice President, Chief Financial Officer

Momenta Pharmaceuticals, Inc.

43 Moulton Street

Cambridge, MA  02138

 

Re:                               Expiration
of Sublease dated February 25, 2002 (“Sublease”) between Curis, Inc. (formerly
known as Ontogeny, Inc.) (“Sublessor”) and Momenta Pharmaceuticals (formerly
known as Mimeon, Inc.) (“Subleasee”)

 

Dear Richard:

 

Per my discussions with Alan L. Crane, Chairman and Chief Executive
Officer of Momenta, on August 2, 2004, Curis and Momenta hereby agrees as
follows:

 

1.             The Sublease Term
expires on August 31, 2004;

 

2.             Momenta has
requested, and Curis hereby agrees to grant to Momenta, an additional fifteen
(15) calendar days to vacate the Premises, as such term is defined in the
Sublease (the “Extension Period”);

 

3.             Momenta hereby
represents and warrants that it shall vacate the Premises no later than the end
of the business day on September 15, 2004;

 

4.             Momenta hereby
acknowledges that time is of the essence for Curis to proceed with the building
of an animal facility on the Premises in order for Curis to relocate its animal
facility from 61 Moulton Street to the Premises as soon as possible;

 

5.             In the event that
Momenta fails to vacate the Premises by the end of the business day on
September 15, 2004, Momenta shall pay to Curis, in addition to all rental and
other charges due and accrued under the Sublease prior to the expiration of the
Sublease Term and Extension Period, a daily use and occupancy charge at the
annual rate of $100.00 per square foot (NNN basis) (i.e., $1,448.09 per day)
commencing on September 16, 2004 until Momenta vacates the Premises.  Except as provided in paragraph 6, below,
such use and occupancy charge shall be in lieu of Fixed Rent under the Sublease
and in lieu of any damages incurred by Curis as a result of Momenta’s holding
over beyond September 15, 2004;

 

 

6.             In addition, if
such holdover continues beyond September 30, 2004 then Momenta shall indemnify,
defend and hold Curis harmless from and against any and all damages which Curis
may suffer on account of Momenta’s holdover on the Premises after such date;

 

7.             Notwithstanding the
expiration of the Sublease, the terms and conditions of the Sublease shall
apply during the Extension Period and until such time that Momenta vacates the
Premises; and

 

8.             For avoidance of
doubt, Momenta shall continue to pay to Curis all rental and other charges due
under the Sublease through the expiration of the Extension Period even if
Momenta vacates the Premises prior to the expiration of the Extension Period.

 

If you are in agreement with the foregoing, please countersign two
originals and return both to my attention. 
Once FPRP signs then I will return one original to your attention.

 

In the meantime, please do not hesitate to contact me if you have any
questions.

 

Very truly yours,

 

	
  /s/ Michael P. Gray

  	
   

  
	
  Michael P. Gray

  
	
  Vice President, Finance and

  
	
  Chief Financial Officer

  

 

[Signature Page To
Follow]

 

2

 

	
  Accepted and Agreed to by:

  by Prime Lessor:

  	
  Acknowledged and Agreed to

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Richard P. Shea

  	
   

  	
  /s/ [illegible]

  	
   

  
	
  Richard P. Shea

  	
  Fresh Pond Research Park Trust

  
	
  Vice President, Chief Financial Officer

  	
  By its Trustee, FPRP Moulton, LLC

  
	
  Momenta Pharmaceuticals, Inc.

  	
   

  
				

 

3Exhibit 10.6

 

EXTENSION OF LEASE

 

It is agreed
between Momenta Pharmaceuticals, Inc., LESSEE, and 68 Moulton Street Realty
Trust, LESSOR, that the lease for four thousand, three hundred and sixteen
(4,316) square feet of office space located on the second floor of 68 Moulton
Street, Cambridge, MA 02138, and dated February 11, 2004 be extended for a
period of four (4) months commencing September 1, 2004 and ending December 31,
2004.

 

 

LESSEE:

 

Momenta Pharmaceuticals,
Inc.

 

 

	
  By:

  	
  /s/ [illegible]

  	
   

  	
   

  
	
   

  	
   

  
	
  Date:

  	
       7/13/2004

  	
   

  	
   

  
	
   

  
	
   

  
	
  LESSOR:

  	
   

  
	
   

  	
   

  
	
  68 Moulton Street
  Realty Trust

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ [illegible]

  	
   

  	
   

  
	
   

  	
   

  
	
  Date:

  	
       7/7/2004Exhibit 10.7

 

EXTENSION OF LEASE

 

It is agreed
between Momenta Pharmaceuticals, Inc., LESSEE, and 68 Moulton Street Realty
Trust, LESSOR, that the lease for four thousand, three hundred and sixteen
(4,316) square feet of office space located on the third floor of 68 Moulton
Street, Cambridge, MA 02138, and dated October 16, 2003 be extended for a
period of four (4) months commencing September 1, 2004 and ending December 31,
2004.

 

 

LESSEE:

 

Momenta Pharmaceuticals,
Inc.

 

 

	
  By:

  	
  /s/ [illegible]

  	
   

  
	
   

  
	
  Date:

  	
       7/13/2004

  	
   

  
	
   

  
	
   

  
	
  LESSOR:

  
	
   

  
	
  68 Moulton Street
  Realty Trust

  
	
   

  
	
  By:

  	
  /s/ [illegible]

  	
   

  
	
   

  
	
  Date:

  	
       7/7/2004Exhibit 10.8

 

Momenta Pharmaceuticals, Inc.

675 West Kendall Street

Cambridge, Massachusetts 02142

 

September 29, 2004

 

 

Dennis P. Bauer, Ph.D.

Siegfried (USA), Inc.

33 Industrial Park Road

Pennsville, NJ 08070

 

Dear Dennis:

 

Reference is made to the Development
and Production Agreement for Active Pharmaceutical Ingredient between Siegfried
(USA), Inc. and Siegfried Ltd. (“SIEGFRIED”) and Momenta Pharmaceuticals, Inc.
(“MOMENTA”) dated October 10, 2003, as amended by Letter Agreements dated
February 14, 2004 and May 17, 2004 (the “Agreement”).  Capitalized terms used herein and not
otherwise defined shall have the meanings given such terms in the Agreement.

 

Pursuant to the Letter
Agreement dated May 17, 2004, MOMENTA engaged SIEGFRIED to undertake the FURTHER
DEVELOPMENT WORK whose cost was estimated to total Four Hundred U.S. Dollars
($400,000).  MOMENTA and SIEGFRIED
acknowledge that the FURTHER DEVELOPMENT WORK was conducted and completed as of
August 31, 2004.

 

As MOMENTA desires to have
SIEGFRIED undertake continuing development work, MOMENTA hereby engages
SIEGFRIED to undertake such continuing development work as is mutually agreed
to from time to time by MOMENTA and SIEGFRIED (the “CONTINUING DEVELOPMENT WORK”).  The CONTINUING DEVELOPMENT WORK shall be
conducted under the terms and conditions of the Agreement, with the following
modifications:

 

1.               SIEGFRIED shall use commercially
diligent efforts to undertake the CONTINUING DEVELOPMENT WORK.

 

2.               MOMENTA shall pay SIEGFRIED on a time
and materials basis for work authorized by MOMENTA.  SIEGFRIED shall invoice MOMENTA monthly for
the CONTINUING DEVERLOPMENT WORK.  All
invoices presented by

 

 

SIEGFRIED shall include a detailed accounting of the actual time and
materials costs for the prior month. For purposes of Section 9.4 of the
Agreement, SIEGFRIED shall be entitled to the Actual Cost of the CONTINUING
DEVELOPMENT WORK as determined in accordance with the first sentence thereof.

 

3.               MOMENTA shall be responsible for
supplying the necessary quantities of heparin for the CONTINUING DEVELOPMENT
WORK in accordance with Section 3.2 of the Agreement.

 

4.               Nothing contained herein shall be
construed as requiring MOMENTA to consent to any particular CONTINUING
DEVELOPMENT WORK or any particular length of time for the performance of
CONTINUING DEVELOPMENT WORK.

 

If the foregoing is in
conformity with your understanding, please execute both copies of this Letter
Agreement and return one fully-executed copy to me.

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  
	
   

  	
  /s/ Joseph
  E. Tyler

  	
   

  
	
   

  	
  Joseph E.
  Tyler

  
	
   

  	
  Vice
  President, Manufacturing

  
	
   

  	
   

  
	
   

  	
   

  
	
  Agreed and
  accepted:

  	
   

  
	
   

  	
   

  
	
  SIEGFRIED
  (USA), INC.

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  [illegible]

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  SIEGFRIED
  LTD.

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Dennis
  P. Bauer

  	
   

  	
   

  
						

 

2Exhibit 10.9

 

Confidential Materials omitted and filed
separately with the 

Securities and Exchange Commission. 
Asterisks denote omissions.

SUBLEASE AGREEMENT

BY AND BETWEEN

 

VERTEX PHARMACEUTICALS INCORPORATED

as Sublandlord

 

 

AND

 

 

MOMENTA PHARMACEUTICALS, INC.

as Subtenant

 

 

Building A

675 West Kendall Street

Cambridge, Massachusetts

 

DATED AS OF September 14, 2004

 

 

SUBLEASE AGREEMENT

 

DEFINED TERMS

 

	
  Fixed
  Rent:

  	
   

  	
  See Schedule 1, attached hereto and
  incorporated herein.

  
	
   

  	
   

  	
   

  
	
  Subtenant’s
  Share:

  	
   

  	
  The ratio, expressed as a percentage, of
  the Rentable Square Footage of the premises leased by Subtenant to the
  Rentable Square Footage of the Master Premises, equal to 6.88% from the
  Commencement Date until the day prior to the Sublease Premises Rent Commencement
  Date and 15.48% thereafter, subject to adjustment based on remeasurement
  pursuant to Section 1(l).

  
	
   

  	
   

  	
   

  
	
  Broker:

  	
   

  	
  CB Richard Ellis / Lynch Murphy Walsh
  Advisors

  
	
   

  	
   

  	
   

  
	
  Building:

  	
   

  	
  The Building known as Building A, 675 West
  Kendall Street, Cambridge, Massachusetts, containing six levels and an
  enclosed, two-story rooftop mechanical penthouse, aggregating approximately
  302,919 rentable square feet.

  
	
   

  	
   

  	
   

  
	
  Commencement
  Date:

  	
   

  	
  The latest to occur of (i) September 14,
  2004, (ii) delivery of the Temporary Premises to Subtenant with the Temporary
  Premises Improvements (as defined in paragraph 1(m) herein) substantially
  completed (as evidenced by a temporary or permanent certificate of occupancy
  for the same), and (iii) receipt of Master Landlord’s written consent to this
  Sublease in substantially similar form to the Consent of Master Landlord
  attached hereto and incorporated herein as Exhibit X
  (“Master Landlord’s Consent”)

  
	
   

  	
   

  	
   

  
	
  Temporary
  Premises Rent

  Commencement Date:

  	
   

  	
  Commencement Date

  
	
   

  	
   

  	
   

  
	
  Sublease
  Premises Rent

  Commencement Date:

  	
   

  	
  The date of delivery of the Sublease
  Premises to Subtenant subject to the following:

  

  If Sublandlord has not Substantially Completed the Subtenant Improvements (as
  such terms are defined in Exhibit TI)
  and delivered the Sublease Premises to Subtenant prior to May 1, 2005 and
  such failure to Substantially Complete is not due to a Subtenant Delay (as
  defined in Exhibit TI), Subtenant shall have the right to remain in the
  Temporary Premises and shall continue

  

 

 

	
   

  	
   

  	
  to pay the Temporary Premises Fixed Rent,
  together with Subtenant’s Share (as calculated using the Temporary Premises
  rentable square footage as the numerator and Master Premises rentable square
  footage as the denominator) of Additional Rent, until Sublandlord
  Substantially Completes the Subtenant Improvements and delivers the Sublease
  Premises to Subtenant.

  

  If Sublandlord has not Substantially Completed the Subtenant Improvements
  prior to May 1, 2005 and such failure is due to a Subtenant Delay, Subtenant
  shall have the right, if such Subtenant action shall not constitute an Event
  of Default hereunder, to remain in the Temporary Premises and shall continue
  to pay (i) the Temporary Premises Fixed Rent and (ii) the Sublease Premises
  Fixed Rent together with Subtenant’s Share (as calculated using the sum of
  the Temporary Premises rentable square footage and the Sublease Premises
  rentable square footage as the numerator and the Master Premises rentable
  square footage as the denominator) of Additional Rent, until Sublandlord
  Substantially Completes the Subtenant Improvements and delivers the Sublease
  Premises to Subtenant.

  
	
   

  	
   

  	
   

  
	
  Effective
  Date:

  	
   

  	
  September 14, 2004

  
	
   

  	
   

  	
   

  
	
  Expiration
  Date:

  	
   

  	
  April 30, 2011

  
	
   

  	
   

  	
   

  
	
  Master
  Landlord:

  	
   

  	
  KS Parcel A, LLC as successor to Kendall
  Square, LLC

  
	
   

  	
   

  	
   

  
	
  Master
  Lease:

  	
   

  	
  That certain Lease Agreement dated January 18,
  2001 between Master Landlord and Sublandlord, as amended by that certain
  First Amendment to Lease dated as of May 9, 2002 and Confirmation of
  Commencement Date and Rentable Square Footage dated January 30, 2003 and
  Second Amendment to lease dated as of September 16, 2003 and Third
  Amendment to Lease dated as of December 22, 2003, as redacted and
  attached hereto as Exhibit A.

  
	
   

  	
   

  	
   

  
	
  Master
  Premises:

  	
   

  	
  Approximately 290,716 rentable square feet
  located within the Building, as more particularly described in the Master
  Lease.

  

 

 

	
  Permitted
  Uses:

  	
   

  	
  Technical office for research and
  development, laboratory and research facility, and, subject to applicable
  requirements of the Cambridge Zoning Ordinance, limited manufacturing as an
  accessory use.

  
	
   

  	
   

  	
   

  
	
  Complex:

  	
   

  	
  An approximately ten acre parcel of land,
  including the Lot and all buildings thereon and improvements thereto
  hereafter constructed by Master Landlord or by one or more Affiliates of
  Master Landlord (as such term is defined below in this Section 1.1), in
  Cambridge, Massachusetts, and shown on a plan entitled “Master Plan” dated June 1,
  1999, Scale 1”=50’, a reduced copy of which is attached to the Master Lease,
  but excluding any portion of the Complex which is not hereafter owned by
  Master Landlord or an Affiliate of Master Landlord.

  
	
   

  	
   

  	
   

  
	
  Security
  Deposit:

  	
   

  	
  Seventy-five percent (75%) of the amount
  that is equal to the average annual Fixed Rent over the portion of the
  Sublease Term commencing on the Sublease Premises Rent Commencement Date and
  ending on the Expiration Date, which, subject to remeasurement, is [**],
  resulting in a security deposit of [**]. The Security Deposit amount shall be
  subject to adjustment following remeasurement of the Sublease Premises in
  accordance with Section 1(l). If the Sublease Term is extended pursuant
  to Section 1(i), the Security Deposit during the Extension Term shall be
  seventy-five percent (75%) of the amount that is equal to the average annual
  Fixed Rent over the Extension Term.

  
	
   

  	
   

  	
   

  
	
  Sublandlord:

  	
   

  	
  Vertex Pharmaceuticals Incorporated

  
	
   

  	
   

  	
   

  
	
  Sublandlord’s
  Address for Notices and Payment:

  	
   

  	
  130 Waverly Street

  Cambridge, Massachusetts 02139-4242

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Notices (but not payments) shall be sent to
  the attention of Alfred Vaz.

  

 

 

	
  Temporary
  Premises:

  	
   

  	
  A portion of the Master Premises,
  consisting of approximately 20,000 rentable square feet located on the third
  floor of the Building as depicted in Exhibit B.
  The parties acknowledge that the third floor of the Building is not subdivided
  and that while Subtenant shall occupy only the Temporary Premises, use of the
  entire third floor shall be available to Subtenant for the Permitted Use.

  
	
   

  	
   

  	
   

  
	
  Sublease
  Premises:

  	
   

  	
  A portion of the Master Premises,
  consisting of (i) the entire fourth floor of the Building comprised of
  approximately 44,000 rentable square feet as depicted in Exhibit C-1
  and (ii) 1,000 rentable square feet located on the 1st
  floor of the Building within the envelope depicted in Exhibit
  C-2, with the exact
  location of the 1st floor space to be mutually agreed to by the
  parties and shown on plans to be completed after the date of this Sublease.

  
	
   

  	
   

  	
   

  
	
  Sublease
  Term:

  	
   

  	
  Approximately eighty (80) months,
  commencing on the Commencement Date and expiring on the Expiration Date

  
	
   

  	
   

  	
   

  
	
  Subtenant:

  	
   

  	
  Momenta Pharmaceuticals, Inc. a Delaware
  corporation

  
	
   

  	
   

  	
   

  
	
  Subtenant’s
  Address:

  	
   

  	
  Prior to the Commencement Date:

  43 Moulton Street

  Cambridge, Massachusetts 02138

  Attn: Chief Financial Officer

  From and after the Commencement Date:

   

  675 West Kendall Street

  Cambridge, Massachusetts 02138

  Attn: Chief Financial Officer

   

  Copies of all notices to Subtenant shall
  also be sent to:

   

  Foley Hoag LLP

  155 Seaport Boulevard

  Boston, Massachusetts 02210

  Attn: Real Estate Department

  

 

 

	
  Schedules
  and Exhibits:

  	
   

  	
  Schedule 1
  – Fixed Rent

  
	
   

  	
   

  	
  Exhibit A
  – Master Lease

  
	
   

  	
   

  	
  Exhibit B
  – Temporary Premises

  
	
   

  	
   

  	
  Exhibits C-1
  & C-2 – Sublease Premises

  
	
   

  	
   

  	
  Exhibit D
  – Preliminary Plans for Subtenant

  
	
   

  	
   

  	
  Improvements of Temporary Premises

  
	
   

  	
   

  	
  Exhibit E
  – Form of Letter of Credit

  
	
   

  	
   

  	
  Exhibit F-1
  & F-2 – Form of Commencement Date 

  
	
   

  	
   

  	
  Agreement and Form of Sublease Premises
  Rent

  
	
   

  	
   

  	
  Commencement Date Agreement

  
	
   

  	
   

  	
  Exhibit
  TI – Initial Subtenant Improvements

  
	
   

  	
   

  	
  Exhibit X
  – Form of Master Landlord Consent

  
	
   

  	
   

  	
  Exhibit
  Y – Determination of Fair Market Rental Value

  

 

 

THIS SUBLEASE AGREEMENT (this “Sublease”) is entered into as of the Effective Date by and
between Sublandlord and Subtenant on the basis of the following facts,
understandings and intentions:

 

A.                                   Sublandlord
presently leases the Master Premises pursuant to the Master Lease.

 

B.                                     Sublandlord
desires to sublease a portion of the Master Premises consisting of the
Temporary Premises and the Sublease Premises to Subtenant and Subtenant desires
to sublease the Temporary Premises and the Sublease Premises from Sublandlord
on all of the terms, covenants and conditions hereinafter set forth.

 

C.                                     All
of the terms and definitions in the Defined Terms section are incorporated
herein by this reference, and any capitalized terms not defined in the Defined
Terms or elsewhere in this Sublease shall have the meanings given to such terms
in the Master Lease.

 

NOW, THEREFORE, IN CONSIDERATION
of the Sublease Premises subleased herein, and other good and valuable
consideration, the receipt and sufficiency of which the parties acknowledge,
the parties covenant and agree as follows:

 

1.               Sublease Premises and Term.

 

(a) Demise.  Sublandlord subleases to Subtenant, and
Subtenant subleases from Sublandlord, the Temporary Premises and the Sublease
Premises, for the respective portions of the Sublease Term as set forth below
and subject to the terms, covenants and conditions set forth herein.  The Sublease Term shall commence on the
Commencement Date.  The Sublease Term
shall end on April 30, 2011 (the “Expiration Date”),
subject to Subtenant’s option to extend the Sublease Term as provided in Section 1(i)
below, or on such earlier date upon which said term may expire or be cancelled
or terminated pursuant to any of the provisions of this Sublease.

 

(b) Temporary Premises Demise.  Upon the Commencement Date, (i) Subtenant
shall occupy the Temporary Premises only subject to the terms and conditions
herein, and (ii) the parties shall, at either party’s request, execute a
Commencement Date Agreement in the form attached hereto as Exhibit F-1
to become a part hereof setting forth the Commencement Date. The parties’
failure to execute such Commencement Date Agreement shall in no way affect
Subtenant’s obligation to perform under this Sublease. Within three (3)
business days after the delivery of the Sublease Premises to Subtenant with the
Subtenant Improvements having been Substantially Completed, Subtenant shall
vacate the Temporary Premises in accordance with the terms, covenants and
conditions set forth herein and shall have no further right nor interest in the
Temporary Premises.

 

(c) Sublease Premises Demise. Upon the
Sublease Premises Rent Commencement Date, (i) Subtenant shall occupy the
Sublease Premises only subject to the terms and conditions herein, and (ii) the
parties shall, at either party’s request, execute a Sublease Premises Rent
Commencement Date Agreement in the form attached hereto as Exhibit F-2
to become a part hereof setting forth the Sublease Premises Rent Commencement
Date.  The parties’ failure to execute
such Sublease Premises Rent Commencement Date Agreement shall in no way affect
Subtenant’s obligation to perform under this Sublease.

 

As used herein, “Temporary Premises” and “Sublease
Premises” shall include such appurtenant rights to use the common areas of the
Building in common with the other

 

 

tenants and occupants thereof as granted to Sublandlord under the
Master Lease, and the common areas of the Master Premises (including the
lavatories and lobbies), in each case to the extent reasonably required by
Subtenant for the use of and access to the Temporary Premises or Sublease
Premises, during their respective periods of occupancy as contemplated hereby,
and the existing interior improvements, equipment and systems of the Temporary
Premises as of the Commencement Date or Sublease Premises as of the Sublease
Premises Rent Commencement Date.  In
addition, Subtenant shall have as appurtenant to (i) the Sublease Premises and
the Temporary Premises the exclusive use of the central nitrogen and CO2
system, provided, however, that Sublandlord, at Sublandlord’s cost and expense
shall have the right to subdivide the existing system, to allow Subtenant
exclusive use of the system; and (ii) the Temporary Premises the right to use,
in common with others entitled thereto, the glass washing facility located on
the second floor of the Building.  If
Sublandlord fails to deliver possession of (i) the Temporary Premises to
Subtenant on or before the Commencement Date, or (ii) the Sublease Premises to
Subtenant on or before the Sublease Premises Rent Commencement Date, this
Sublease shall not be void or voidable nor shall Sublandlord be liable to
Subtenant for any resulting loss or damage; provided, however, that Subtenant
shall not be liable for any Rent (as hereinafter defined) until delivery of the
Temporary Premises to Subtenant. 
Subtenant covenants that, as a material part of the consideration for
this Sublease, it shall keep and perform each and all of such terms, covenants
and conditions by it to be kept and performed, and that this Sublease is made
upon the condition of such performance. 
Subtenant assumes and agrees to perform Sublandlord’s obligations under
the Master Lease during the Sublease Term to the extent such obligations are
applicable to the Temporary Premises and the Sublease Premises, as applicable,
and are not either excluded from incorporation herein or specifically
contradicted or modified herein. 
Subtenant shall not commit or suffer any act or omission that will
violate any of the provisions of the Master Lease incorporated herein.  Notwithstanding anything in this Sublease to
the contrary, Subtenant by execution of this Sublease does not assume any
obligation to (i) pay the Rent and Additional Rent to be paid by Sublandlord
under the Master Lease (except as otherwise expressly provided herein or in any
separate agreement or consent between, inter alia,
Subtenant and Master Landlord), (ii) cure any default of Sublandlord under the
Master Lease unless attributable to Subtenant’s default hereunder, (iii)
perform any obligation of Sublandlord under the Master Lease which arose prior
to the Commencement Date unless attributable to Subtenant’s actions or
omissions or expressly required hereunder, (iv) repair any damage to the
Sublease Premises caused by Sublandlord, (v) remove any alterations or
additions installed within the Sublease Premises by Sublandlord except as
expressly provided herein, (vi) discharge any liens on the Sublease Premises or
the Building which arise out of any work performed, or claimed to be performed,
by or at the direction of Sublandlord (and not at the direction of Subtenant).

 

(d) Installation of Tenant’s Furniture, Equipment and
Fixtures.  As of the
Effective Date, Subtenant and its agents, employees, invitees, consultants and
contractors (collectively “Agents”) shall
have the right to enter the Temporary Premises for the sole purpose of space
planning, construction of tenant improvements and installation of furniture,
equipment and furnishings in the Temporary Premises, at Subtenant’s sole cost
(provided that Subtenant shall obtain the consent of Sublandlord and Master
Landlord to any Alterations as required by Section 6 of this
Sublease).  Subtenant and its Agents
shall have the right to enter the Sublease Premises, thirty (30) days prior to
the Sublease Premises Rent Commencement Date, for the sole

 

 

purpose of space planning, construction of tenant improvements and
installation of furniture, equipment and furnishings in the Sublease Premises,
at Subtenant’s sole cost (provided that Subtenant shall obtain the consent of
Sublandlord and Master Landlord to any Alterations as required by Section 6
of this Sublease).  Such access shall be
subject to all of the terms and conditions of this Sublease, except that
Subtenant shall not be obligated to pay Rent on account thereof.  Any entry by Subtenant or any of its Agents
pursuant to this Section (d) shall be undertaken at Subtenant’s sole
risk.  Subtenant shall indemnify, defend
and hold Sublandlord and Master Landlord harmless from any and all loss,
damage, liability, expense (including reasonable attorneys’ fees and costs),
claim or demand of whatsoever character, direct or consequential, including,
but not limited to, injury to or death of persons, damage to or loss of
property arising out of the exercise by Subtenant of any early entry right
granted hereunder.

 

(e) Parking.  Subtenant shall rent 1.5 parking spaces per
1,000 rentable square feet (i.e. thirty (30) spaces while Subtenant occupies
the Temporary Premises and sixty-eight (68) spaces while Subtenant occupies the
Sublease Premises). Subtenant shall pay parking fees at the prevailing rates
for the Complex (currently $225/space/month). 
Any additional parking spaces offered to Subtenant by Sublandlord shall
be on terms and conditions as reasonably determined by Sublandlord, provided
that in no instance shall Subtenant be obligated to pay parking fees greater
than the prevailing rates for the Complex. 
At any time when Subtenant notifies Sublandlord that it wishes
additional parking spaces, Sublandlord may provide such parking spaces if, as
and when available as determined in Sublandlord’s sole discretion. All parking
spaces shall be unreserved and otherwise subject to the terms and conditions of
the Master Lease.

 

(f) Acceptance of Temporary Premises and Sublease
Premises.  Subtenant
agrees to accept the Temporary Premises in its current “as is” condition and
the Sublease Premises in the condition incorporating the Subtenant
Improvements.  Any improvements to be
made to the Temporary Premises shall be made at the sole cost of Subtenant and
shall be subject to the provisions of this Sublease governing Alterations.  Improvements to be made to the Sublease
Premises are discussed in subsection (k) below.  Without limiting the foregoing, Subtenant’s
rights in the Temporary Premises and Sublease Premises are subject to, and
Subtenant agrees to comply with, all local, state and federal laws,
regulations, codes and ordinances (collectively, “Laws”)
governing and regulating the use and occupancy of the Sublease Premises, the
terms and conditions of the Master Lease, and all matters now or hereafter of
record, provided, no such matters of record shall unreasonably interfere with
Subtenant’s use of the Sublease Premises for the Permitted Uses.  Without limiting the foregoing, Subtenant
shall be solely responsible for ensuring that the use and storage of all
materials, solvents, chemicals or other items within the Temporary Premises and
Sublease Premises shall be undertaken in accordance with all Laws.  Sublandlord reserves the right to review and
approve or modify Subtenant’s plans for storage and use of any such materials.
Subtenant acknowledges that neither Sublandlord nor Sublandlord’s agent has
made any representation or warranty as to: (i) the present or future
suitability of the Sublease Premises for the conduct of Subtenant’s business;
(ii) the physical condition of the Sublease Premises; (iii) the expenses of
operation of the Sublease Premises; (iv) the safety of the Sublease Premises,
whether for the use of Subtenant or any other person, including Subtenant’s
Agents; (v) the compliance of the Sublease Premises with applicable Laws; or
(vi) any other matter or thing affecting or related to the Sublease Premises.

 

 

Subtenant acknowledges that
no rights, easements or licenses are acquired by Subtenant by implication or
otherwise except as expressly set forth herein. 
Subtenant has inspected or will inspect, prior to delivery of possession
of the Sublease Premises, the Sublease Premises and become thoroughly
acquainted with their condition. 
Subtenant acknowledges that the taking of possession of the Sublease
Premises by Subtenant will be conclusive evidence that the Sublease Premises
were in good and satisfactory condition at the time such possession was taken
(except for punch list and other matters which reasonably could not have been
discovered by Subtenant).  Subtenant
further agrees that, in the event Subtenant is permitted to and in fact assigns
this Sublease or sub-subleases all or any portion of the Sublease Premises,
Subtenant will indemnify and defend Sublandlord (in accordance with Section 7(a)
hereof) for, from and against any matters which arise as a result of Subtenant’s
failure to disclose any relevant information about the Building or the Sublease
Premises known to Subtenant to any sub-sublessee or assignee of Subtenant.  Subtenant will comply with all Laws relating
to the use or occupancy of the Sublease Premises and to the Common Areas (other
than those requiring structural alterations, except as required as a result of
Subtenant’s Alterations), including, without limitation, making non-structural
alterations or providing auxiliary aids and services to the Sublease Premises
as required by the Americans with Disabilities Act of 1990, 42 U.S.C. § 12101
et seq. (the “ADA”) to the extent such
alterations, aids or services (x) are required by Subtenant’s particular use or
occupancy of the Sublease Premises, (y) are required for any reason as the
result of the non-compliance of the Sublease Premises (other than the Shell
Building Work and the Common Areas, as such terms are defined in the Master
Lease) with any revisions or amendments to the ADA which become effective after
the Commencement Date or (z) are due to any alterations or improvements
installed by Subtenant in the Sublease Premises (including any resulting ADA
compliance requirements in the Common Areas). 
Subtenant further agrees that all telephone and other communication
installation and use requirements will be compatible with the Building and that
Subtenant will be solely responsible for all of its telephone and communication
installation and usage costs.

 

(g) Removal of Personal Property.  All articles of personal property, machinery
and equipment, owned or installed by Subtenant at its expense in the Temporary
Premises or Sublease Premises will be and shall remain the property of
Subtenant and may be removed by Subtenant at any time, provided that Subtenant,
at its expense, shall repair any damage to the Sublease Premises caused by such
removal or by the original installation. 
Sublandlord may elect to require Subtenant to remove all or any part of
Subtenant’s personal property at the expiration of the Sublease Term or sooner
termination of this Sublease, in which event the removal will be done at
Subtenant’s expense and Subtenant, prior to the end of the Sublease Term or
upon sooner termination of this Sublease, will repair any damage to the
Sublease Premises caused by its removal. 
Sublandlord may elect to require Subtenant to remove all or any part of
Subtenant’s personal property from the Temporary Premises, in which event the
removal will be done at Subtenant’s expense, within three (3) business days
after the delivery of the Sublease Premises or upon sooner termination of this
Sublease, and Subtenant will repair any damage to the Sublease Premises caused
by its removal.  Notwithstanding anything
in this Sublease to the contrary, except for Subtenant’s personal property,
Subtenant shall have no obligation to remove any of the Subtenant Improvements
(as defined in subparagraph (k) below) or the Temporary Premises Improvements
(as defined in subparagraph (m) below) from the Sublease Premises or the
Temporary Premises, as the case may be, unless such improvements were identified
for 

 

 

removal by written notice from Sublandlord or Master Landlord prior to
the installation of the same.

 

(h) Holding Over.  If Subtenant holds over after the expiration
of the Sublease Term or earlier termination of this Sublease, with or without the
express or implied consent of Sublandlord, then Subtenant will become and be
only a tenant at sufferance at a per diem Fixed Rent equal to (i) during such
period of time that the Master Lease remains in effect, One Hundred and Fifty
percent (150%) of the Fixed Rent payable by Subtenant to Sublandlord under this
Sublease immediately prior to such expiration or termination of the Sublease;
or (ii) during such period of time that the Master Lease has for any reason
whatsoever been terminated, expired or otherwise cancelled, One Hundred and
Fifty percent (150%) of the Fixed Rent payable by Sublandlord and allocable to
the Sublease Premises under the Master Lease immediately prior to such
expiration or termination, and otherwise upon the terms, covenants and conditions
herein specified.  Notwithstanding any
provision to the contrary contained herein, (a) Sublandlord expressly
reserves the right to require Subtenant to surrender possession of the Sublease
Premises upon the expiration of Sublease Term or upon the earlier termination
of this Sublease and the right to assert any remedy at law or in equity to
evict Subtenant and/or collect damages in connection with any holding over, and
(b) Subtenant will indemnify, defend and hold Sublandlord harmless from and
against any and all liabilities, claims, demands, actions, losses, damages,
obligations, costs and expenses, including, without limitation, attorneys’ fees
(including the allocated costs of Sublandlord’s in-house attorneys) incurred or
suffered by Sublandlord by reason of Subtenant’s failure to surrender the
Sublease Premises on the expiration of the Sublease Term or earlier termination
of this Sublease.

 

(i) Extension Option.  Sublandlord hereby grants to Subtenant the
option to extend the Sublease Term for one (1) additional term of Forty Eight
(48) months, expiring on April 30, 2015, or on such earlier date upon
which said term may expire or be cancelled or terminated pursuant to any of the
provisions of this Sublease (the “Extension Term”),
upon and subject to the following terms and conditions:

 

(i)                                     The
Extension Term shall commence on the day next succeeding the Expiration Date of
the initial Sublease Term.

 

(ii)                                  Subtenant
shall exercise such option as to the Extension Term by giving written notice of
exercise of the option (the “Extension Notice”)
to Sublandlord at least twelve (12) months but no more than eighteen (18)
months before the first day of the Extension Term, time being of the essence.

 

(iii)                               Upon the date of
delivery of the Extension Notice and on the Expiration Date of the initial
Sublease Term, no Event of Default by Subtenant shall exist.

 

(iv)                              If
Subtenant elects to extend the Sublease Term for the Extension Term, all the
provisions of this Sublease shall be applicable during such Extension Term
except that:

 

(1)                                  Subtenant
shall have no further right to extend the Sublease Term beyond the expiration
of the Extension Term;

 

 

(2)                                  Effective
as of the commencement of the Extension Term, the Fixed Rent in effect shall be
the fair market rental for the fully built-out Sublease Premises for the
Extension Term (including annual increases therein), as determined by
Sublandlord in good faith; provided that such fair market rental for the
Extension Term shall not be less than [**] Dollars ($[**]) per rentable square
foot on a triple net basis; provided, further, if Subtenant shall disagree with
Sublandlord’s determination of the fair market rental, then the same shall be
determined pursuant to Exhibit Y
attached hereto.

 

If Subtenant timely
exercises the aforesaid extension option as provided herein, “Sublease Term”
shall be deemed to mean the initial Sublease Term plus the Extension Term and
the “Expiration Date” shall be deemed to mean the final day of the Extension
Term.

 

(j) Right Of First Offer.  Sublandlord hereby grants Subtenant a
continuing right of first offer to lease any unoccupied space within the first
floor of the Building that is currently available or later becomes available
during the Sublease Term (the “Right of First Offer”).  Subtenant shall have five (5) days after
receipt of Sublandlord’s written notice that Sublandlord is marketing such
space in which to exercise the Right of First Offer upon any such vacant space
upon the terms and conditions offered by Sublandlord, which shall be consistent
with terms and conditions offered by Sublandlord for other space in the
Building.  In the event Subtenant does
not exercise its Right of First Offer then Sublandlord may sublease such space
without recourse by Subtenant.

 

(k) Subtenant Improvements to Sublease Premises.  Provisions regarding the initial tenant
improvements to be installed and constructed by Sublandlord upon the Sublease
Premises and the allowance for initial tenant improvements to be paid by
Sublandlord are attached as Exhibit TI (the “Subtenant
Improvements”).  Subject to Exhibit TI, Subtenant shall submit for Sublandlord’s
approval (which approval shall not be unreasonably withheld) and for Master
Landlord’s approval, if required by the Master Lease, the preliminary plans and
thereafter the final plans and specifications for the Subtenant
Improvements.  Sublandlord construction
of the Subtenant Improvements shall otherwise comply with the terms and
conditions of Section 3.3 of the Master Lease, including, but not limited
to, Subtenant’s obligation to remove such Subtenant Improvements if required by
Master Landlord in accordance therewith; provided, however,
Subtenant shall have no obligation to remove Subtenant Improvements unless the
same were identified for removal at the time Master Landlord gave its consent
thereto.  All permanent portions of the
Subtenant Improvements installed in the Sublease Premises, including all
fixtures and cabinet work, if any, will be and shall remain the property of
Sublandlord.

 

(l) Remeasurement. Sublandlord and
Subtenant acknowledge that the actual rentable square footage of the Sublease
Premises may, upon completion of construction of the Subtenant Improvements, be
different than the estimates set forth in Article I hereof.  Accordingly, after completion of construction
of the Subtenant Improvements, Sublandlord will notify Subtenant of the actual
Rentable Square Footage of the Sublease Premises and the Rentable Square
Footage of Building, which shall be measured in accordance with the ANSI/BOMA 265.1-1996
Standard Method for Measuring Building Rentable Area, approved June 7,
1996.  If necessary, Sublandlord and
Subtenant will execute an amendment to this Sublease modifying the definitions
of Sublease Premises, Master Premises,

 

 

Subtenant’s Share, the amount of the Security Deposit, and such other
terms and provisions, if any, of this Sublease as may be necessary to reflect
such actual measurements.

 

(m) Subtenant Improvements to Temporary Premises.  The initial tenant improvements upon the
Temporary Premises (“Temporary Premises
Improvements”) shall be constructed by Sublandlord at Subtenant’s
sole cost and expense and shall be subject to Master Landlord’s approval
thereof, provided, however, that Sublandlord has agreed to pay for the
electrical installation (exclusive of telecommunication and data cabling) at
the Temporary Premises.  Subtenant and
Sublandlord have agreed upon and have submitted for Master Landlord’s approval,
to the extent required by the Master Lease, the final plans and specifications
for the Temporary Premises Improvements. 
Sublandlord’s construction of the Temporary Premises Improvements shall
otherwise comply with the terms and conditions of Section 3.3 of the
Master Lease, including, but not limited to, Subtenant’s obligation to remove
such Temporary Premises Improvements if required by Master Landlord in
accordance therewith; provided, however, Subtenant shall have no
obligation to remove Subtenant Improvements unless the same were identified for
removal at the time Master Landlord gave its consent thereto.  All permanent portions of the Temporary
Premises Improvements installed in the Temporary Premises, including all
fixtures and cabinet work, if any, will be and shall remain the property of
Sublandlord.

 

2.               Sublease Subject to Master Lease.

 

(a) Inclusions.  This Sublease is subject and subordinate to
the Master Lease.  All of the terms,
conditions and covenants of the Master Lease are hereby incorporated into this
Sublease by reference, except as excluded in Section 2(b) herein;
provided, however, as between the Sublandlord and Subtenant the terms,
conditions and covenants of this Sublease shall be controlling whenever the
terms, conditions and covenants of the Master Lease are contradictory to or
inconsistent with terms, conditions and covenants hereof, provided that any
action or inaction pursuant to such inconsistent term, condition or covenant
does not cause a default under the Master Lease.  Subtenant shall be subject to, bound by and
comply with all of said included terms, conditions and covenants of the Master
Lease with respect to the Sublease Premises for the Sublease Term herein for
the benefit of both Sublandlord and Master Landlord, it being understood and
agreed that wherever in the Master Lease the word “Tenant” appears, for the
purposes of this Sublease, the word “Subtenant” shall be substituted, and
wherever the word “Landlord” appears, for the purposes of this Sublease, the
word “Sublandlord” shall be substituted, and wherever the word “Premises”
appears, for the purposes of this Sublease, the words “Sublease Premises or
Temporary Premises, as the case may be” shall be substituted, and wherever the
word “Term” appears, for the purposes of this Sublease, the words “Sublease
Term” shall be substituted; and that upon the breach of any of said terms,
conditions or covenants of the Master Lease by Subtenant or upon the occurrence
of an Event of Default by Subtenant, Sublandlord may exercise any and all
rights and remedies granted to Master Landlord by the Master Lease.  In the event of any conflict between this
Sublease and the Master Lease, the terms of this Sublease shall control between
Sublandlord and Subtenant.  It is further
understood and agreed that Sublandlord has no duty or obligation to Subtenant
under the aforesaid Sections of the Master Lease other than to perform the
obligations of Sublandlord as tenant under the Master Lease during the Sublease
Term.  Whenever the provisions of the
Master Lease incorporated as provisions of this Sublease require the written
consent of Master Landlord,

 

 

said provisions shall be construed to require the written consent of
both Master Landlord and Sublandlord. 
Subtenant hereby acknowledges that it has read and is familiar with all
the terms of the Master Lease, and agrees that this Sublease is subordinate and
subject to the Master Lease.

 

(b) Exclusions.  The terms and provisions of the following
Sections and Exhibits of the Master Lease are not incorporated into this
Sublease:  Any redacted provisions of the
Master Lease; Article I in its entirety (i.e. all subsections); the
portion of Section 2.1 governing parking spaces; Sections 2.2, 2.3, 3.1,
3.2, 3.4 and 3.5 in their entirety (i.e. all subsections); Subsection 4.1(a)
and 4.1(b); Sections 4.2 (except to the extent necessary to give meaning to
Subtenant’s obligations under paragraph 3 of this Sublease) and 4.3;
Subsections 5.1.6. 5.1.7 (this exclusion shall not affect Master Landlord’s
right to enter the Temporary Premises and the Sublease Premises pursuant to
said Subsection 5.1.7), 5.1.8, 5.1.10, 5.1.11, 5.1.12, 5.1.15; Subsection 5.2.1
(except to the extent necessary to give meaning to paragraph 5 of this
Sublease); Sections 7.1 (except to the extent necessary to give meaning to
paragraph 12 of this Sublease), 10.1, 10.3, 10.5, 10.8, 10.11, 10.12, 10.14
(expect to the extent necessary to give meaning to subparagraph 1(e) of this
Sublease) and 10.17; Exhibits A, A-1, A-2, A-3, B, B-1, E and F; the First
Amendment to Lease, the Second Amendment to Lease and the Third Amendment to
Lease. Notwithstanding anything herein to the contrary, Subtenant shall comply
with the PTDM Approval requirements as set forth in Section 3.1.4 of the
Master Lease.

 

(c) Time for Notice.  Except for the time limits for notice,
demands, performance or exercise of rights specified in this Sublease which
shall not be altered by this Section 2(c), including without limitation
the time frames set forth in Sections 11 and 11 hereof, the time limits
provided for in the Master Lease for the giving of notice, making of demands,
performance of any act, condition or covenant, or the exercise of any right,
remedy or option, are amended for the purposes of this Sublease by lengthening
or shortening the same in each instance by five (5) days, as appropriate, so that
notices may be given, demands made, or any act, condition or covenant
performed, or any right, remedy or option hereunder exercised, by Sublandlord
or Subtenant, as the case may be, within the time limit relating thereto
contained in the Master Lease.  If the
Master Lease allows only seven (7) days or less for Sublandlord to perform any
act, or to undertake to perform such act, or to correct any failure relating to
the Sublease Premises or this Sublease, then Subtenant shall nevertheless be
allowed three (3) days to perform such act, undertake such act and/or correct
such failure.  In the event of a conflict
between the time frame set forth elsewhere in this Sublease and the time frame
specified in the Master Lease as modified by this Section 2(c), the time
frame set forth elsewhere in this Sublease shall control.

 

(d) Master Landlord’s Obligations.  It shall remain the obligation of Master
Landlord to provide all services to be provided by Master Landlord under the
terms of the Master Lease and to satisfy all obligations and covenants of
Master Landlord made in the Master Lease. 
Subtenant acknowledges that Sublandlord shall be under no obligation to
provide any such services or satisfy any such obligations or covenants;
provided, however, Sublandlord, upon written notice by Subtenant, shall use
reasonable efforts to enforce all obligations of Master Landlord under the
Master Lease without any obligation of Sublandlord to incur any costs or bring
any legal action against Master Landlord.

 

 

(e) Rules and Procedures.  Subtenant acknowledges and agrees that other
subtenants of Sublandlord are occupying or may in the future occupy other
portions of the Master Premises.  In
addition to the rules and regulations of the Master Lease, Subtenant’s use of
the Sublease Premises and access to and use of the Common Areas and any other
services in connection with the Sublease Premises or this Sublease shall be
subject to such additional rules and procedures reasonably promulgated by
Sublandlord and delivered to Subtenant from time to time.  Subtenant’s compliance with such rules and
procedures constitutes a material inducement to Sublandlord’s willingness to
enter into this Sublease; any violation thereof shall constitute a material
breach of this Sublease.

 

(f) Termination of Master Lease.  If the Master Lease terminates with respect
to the Sublease Premises, prior to the expiration or earlier termination of
this Sublease, this Sublease shall concurrently terminate, unless this Sublease
becomes a direct lease of the Building between Master Landlord and Subtenant as
provided in the Master Landlord’s Consent or unless Master Landlord and
Subtenant agree to deem this Sublease to be a direct lease of the Sublease
Premises between Master Landlord and Subtenant; provided that as a condition to
such direct lease, Sublandlord shall be released from all liabilities and
obligations under this Sublease arising from and after the date that the Master
Lease terminated with respect to the Sublease Premises.

 

(g) Consent or Approval of Master Landlord.  All references in this Sublease (whether in
the text itself or by incorporation from the Master Lease) to the consent or
approval of Master Landlord or Sublandlord shall mean the written consent or
approval of Master Landlord or Sublandlord, as the case may be.  If any request or demand is made by Master
Landlord (whether requiring an act, restraint or payment) directly to Subtenant
pursuant to the Master Lease in respect of a corresponding obligation under the
Master Lease, then such request or demand shall be honored and performed or
adhered to as if the request or demand was made directly by Sublandlord.  In all provisions of this Sublease requiring
the satisfactory approval or consent of Sublandlord, Subtenant first shall be
required to obtain the approval or consent of Sublandlord and then, if
Sublandlord under similar circumstances would be required under the terms of
the Master Lease, to obtain the like approval or consent of Master Landlord,
Sublandlord shall forward to Master Landlord such requests as Subtenant may
submit for approval or consent from Master Landlord.  In the case of a time sensitive matter,
Subtenant may submit the request for approval or consent simultaneously to
Master Landlord and Sublandlord. 
Whenever, pursuant to this Sublease, Master Landlord or Sublandlord’s
consent or approval, or the review or consideration by Master Landlord or
Sublandlord of any matter, is permitted, solicited or required prior to or in
connection with any activity planned or undertaken on behalf of Subtenant
(including, without limitation, Master Landlord’s consent to this Sublease),
Subtenant shall reimburse Master Landlord and Sublandlord for all reasonable
expenses (including, without limitation, the reasonable fees and disbursements
of attorneys and other professional consultants) incurred by Master Landlord
and Sublandlord, as the case may be, in connection with such consideration,
review, consent or approval.  Such
reimbursement shall be made by Subtenant within twenty (20) days after written
demand.  Expenses incurred by Sublandlord
shall be deemed to include any expenses or fees payable to Master Landlord
under the Master Lease.

 

 

(h) Representations of Sublandlord.  Sublandlord represents to Subtenant that a
true and correct copy of the Master Lease, redacted to expunge certain
confidential economic information, is attached hereto as Exhibit A,
that the Master Lease is in full force and effect and has not been amended, and
that, to Sublandlord’s knowledge, no default exists on the part of Sublandlord
or Master Landlord under the Master Lease. 
As long as no Event of Default by Subtenant exists hereunder,
Sublandlord (i) shall continue to perform the obligations of tenant under the
Master Lease which are not incorporated herein, including the obligation of
Sublandlord to pay rent to Master Landlord in accordance with the provisions of
the Master Lease and (ii) agrees not to voluntarily terminate, cancel or
surrender the Master Lease with respect to the Sublease Premises during the Sublease
Term, or modifying the Master Lease in any way which would materially interfere
with Subtenant’s rights hereunder, subject, however to any termination of the
Master Lease without the fault of the Sublandlord.  As of the execution date of this Sublease,
Sublandlord represents and warrants that (i) it has received no notice of
default from Master Landlord under the Master Lease; (ii) there is no event or
circumstance that, with the giving of notice or the passage of time would
constitute a default under the Master Lease; and (iii) it has paid all Annual
Fixed Rent and Additional Rent, to the extent due and payable, pursuant to the
Master Lease.  Sublandlord represents
that Sublandlord has not granted any (y)existing rights of first offer or
refusal held by third parties with respect to the Temporary Premises or the
Sublease Premises or (z) other sublease or other occupancy arrangement with
respect to the Temporary Premises or the Sublease Premises.

 

(i) Sublandlord Obligations.  Sublandlord shall be responsible for the
following (collectively, “Sublandlord Services”):

 

(i)                                     Staff
the loading dock to receive deliveries and coordinate shipping.

 

(ii)                                  Provide
for personnel to be stationed at the front desk of the Building during normal
business hours of 7 AM to 7 PM and access to the Building to be only by card
access at all other times.  Sublandlord
shall not provide specific security to the Sublease Premises or Temporary
Premises as applicable and such security shall be Subtenant’s sole
responsibility and obligation.

 

(iii)                               Maintain the common
areas of the Master Premises in the condition required by Section 5.1.3 of
the Master Lease.

 

(iv)                              Maintain
the insurance required under Subsection 4.2.2.1(c) of the Master Lease.

 

(v)                                 Provide
Utilities to the Master Premises to the extent Master Landlord is not
responsible for the provision of the same pursuant to Section 4.2.3 of the
Master Lease.

 

Subtenant shall reimburse
Sublandlord for Subtenant’s Share of these expenses as Additional Rent as
provided in Paragraph 3(c), below.

 

3.               Rent.

 

(a) Fixed Rent.  Fixed rent (“Fixed Rent”)
shall be as set forth in the Defined Terms. 
Subtenant shall pay Fixed Rent in monthly installments in advance on or
before the first

 

 

day of each and every calendar month during the Sublease Term, without
being invoiced; except that Subtenant shall deliver to Sublandlord upon
execution of this Sublease, prepaid Rent for the first full month of the
Sublease Term and the Security Deposit in the form of cash or a letter of
credit.  Prepaid rent shall be applied
against Subtenant’s first obligation to pay Fixed Rent.

 

(b) Subtenant’s Share of Master Lease Additional Rent.  In addition to Fixed Rent, Subtenant shall
pay to Sublandlord Subtenant’s Share of Sublandlord’s obligations for Additional
Rent pursuant to Section 4.2 of the Master Lease.  Subtenant shall pay Sublandlord estimated
monthly installments of Subtenant’s Share of such Additional Rent in advance,
together with payments of Fixed Rent hereunder, which shall equal Subtenant’s
Share of the Sublandlord’s monthly estimate of Additional Rent as determined
pursuant to Section 4.2 of the Master Lease, and such estimated payments
shall be reconciled as provided under said Section 4.2 of the Master
Lease.  Sublandlord shall provide
Subtenant with copies of invoices and supporting documentation received from
Master Landlord with respect to Additional Rent.

 

(c) Additional Rent  In addition to Subtenant’s obligations to pay
Fixed Rent, and Additional Rent pursuant to 3(b) of this Sublease Subtenant
shall pay or reimburse Sublandlord, without deduction or setoff, for (i)
Subtenant’s Share of Sublandlord Services as described in Paragraph 2(i) above
and Subtenant’s Share of the costs and expenses accruing during the Sublease
Term and payable by Sublandlord to any person or entity in order to comply with
Sublandlord’s obligations under the Master Lease with respect to the Building
(except as otherwise provided herein),(“Sublandlord Service Costs”);  (ii) all costs and expenses incurred by
Sublandlord as a result of Subtenant’s failure to timely comply with its
obligations under this Sublease, and (iii) Sublandlord’s costs and expenses in
connection with providing additional services to Subtenant (such as, but not
limited to, after-hours HVAC or security) as set forth in this Sublease.  In the event Subtenant’s usage of any utility
is materially greater than Subtenant’s Share of utility expenses, Sublandlord
shall have the right to reasonably allocate a charge for such greater use.  Sublandlord may elect to separately meter any
or all Utilities serving the Sublease Premises, in which case, Sublandlord may
elect to have Subtenant shall pay directly for the cost of such Utilities.
Notwithstanding any other provision herein to the contrary, if the Master Premises
is not fully occupied during any year of the Sublease Term, an adjustment shall
be made in computing the variable components of 
Sublandlord’s Services Costs for such year so that Sublandlord’s
Services Costs shall be computed for such year as though the Master Premises
had been fully occupied during such year. 
Subtenant shall also be solely responsible to pay directly for all costs
and expenses for services not otherwise provided by Master Landlord or Sublandlord
pursuant to the Master Lease or this Sublease, as the case may be, specifically
related to the Sublease Premises; all personal property taxes; all other
utilities required by Subtenant’s operations in the Sublease Premises;  all janitorial services provided to the
Sublease Premises; and all maintenance or repair services provided to the
Sublease Premises to the extent the same are not otherwise the Master Landlord’s
responsibility pursuant to the Master Lease or the Sublandlord’s responsibility
pursuant to this Sublease.  Sublandlord
shall provide Subtenant with reasonable documentation substantiating all such
costs and expenses described in this subparagraph.  Other than as specifically provided for
herein, to the extent that any Building services are not provided to the
Sublease Premises by Master Landlord under the Master Lease, Subtenant
acknowledges and agrees that Sublandlord shall have no obligation to provide
such Building services for Subtenant. 
Notwithstanding the foregoing, Subtenant shall not be responsible for
(i) late fees, holdover payments, default damages, or interest due under the 

 

 

Master Lease which relate to the acts or omissions of Sublandlord under
the Master Lease and not the acts or omissions of Subtenant under this
Sublease, (ii) costs of indemnifying Master Landlord for acts or omissions of
Sublandlord not resulting from the acts or omissions of Subtenant, (iii) share
of any profit made by Sublandlord on a sublease, (iv) costs of Master Landlord
performing any obligation under the Master Lease which Sublandlord failed to
perform (unless such failure is attributable to failure on the part of
Subtenant hereunder), (v)  costs of
Sublandlord’s comprehensive liability insurance and worker’s compensation
insurance required under the Master Lease, (vi) attorney’s fees charged by
Master Landlord in connection with enforcement of the Master Lease against
Sublandlord (unless attributable to Subtenant’s failure hereunder), (vii) costs
in connection with the performance of Tenant’s Work pursuant to Article III
of the Master Lease,  (viii) maintenance
and repairs with respect to any non-common areas of the Master Premises (other
than the Sublease Premises);  (ix) costs
and expenses that would, under generally accepted accounting principals,
constitute capital expenditures (except that with respect to the common areas
of the Master Premises, Sublandlord may pass through annual amortization of
such expenditures in accordance with generally accepted accounting principals);
(x) cost and expenses to the extent caused by Sublandlord’s negligence or
willful misconduct; or (xi) Fixed Rent pursuant to the Master Lease, and,
except as expressly provided in this Sublease, items of Additional Rent
pursuant to the Master Lease.

 

(d) .Payment of Rent.  As used herein, “Rent”
shall include Fixed Rent, Subtenant’s Share of Additional Rent and all other
additional rent, costs, charges and expenses to be paid by Subtenant to
Sublandlord pursuant to this Sublease. 
Rent herein reserved or payable shall be paid at Sublandlord’s election,
(i) to Sublandlord’s address for payment of Rent set forth in the Defined
Terms, or (ii) to such other payee and/or at such other place as
Sublandlord may designate from time to time in writing, in lawful money of the
United States of America, as and when the same become due and payable, without
demand therefor and without any deduction, set-off or abatement whatsoever,
except as expressly provided otherwise in this Sublease or the Master
Lease.  Subtenant shall be required to
pay Subtenant’s Share of Additional Rent, and any additional rent payable
hereunder, notwithstanding any dispute regarding such obligation, unless and
until such dispute is finally resolved in favor of Subtenant (or Sublandlord,
in any dispute relating to payments made by Sublandlord under the Master
Lease).  In the event the first day of
the Sublease Term shall not be the first day of a calendar month or the last
day of the Sublease Term is not the last day of the calendar month, Fixed Rent
and Subtenant’s Share of Additional Rent and other costs an expenses shall be
appropriately prorated based on a thirty (30) day month.  Additionally, Subtenant shall pay to
Sublandlord, as additional rent hereunder, within twenty (20) days after
written request therefor, any other payments for which Sublandlord shall become
responsible to Master Landlord or Sublandlord under the Master Lease or this
Sublease with respect to the Sublease Premises, including, but not limited to,
additional rent arising (i) by reason of Subtenant’s request for
extraordinary services or utilities (such as replacement lighting) from Master
Landlord or Sublandlord, or (ii) as a result of Subtenant’s Event of
Default hereunder.

 

(e) Late Payment Charges and Interest.  Any payment of Rent or other amount from
Subtenant to Sublandlord or Master Landlord under this Sublease which is not
paid on the date due shall accrue interest from the date due until the date
paid at a rate equal to the lesser of Bank of America or its successor’s prime
commercial rate, as it may be adjusted from time to time, plus 4% per year or
the maximum rate then permitted by law (the “Interest
Rate”).  If any

 

 

installment of Rent is not paid promptly within two business days after
notice (which may be oral) from Sublandlord, Subtenant shall pay to Sublandlord
a late payment charge equal to five percent (5%) of the amount of such
delinquent payment of Rent, in addition to the installment of Rent then owing;
provided, however, no notice shall be required from Sublandlord and such late
payment charge shall be owing upon the second such late payment in any
consecutive twelve-month period.  This Section shall
not relieve Subtenant of Subtenant’s obligation to pay any amount owing
hereunder at the time and in the manner provided.

 

(f) Security Deposit.  Promptly, but no later than five (5) business
days, following Master Landlord’s consent to this Sublease, Subtenant shall
delivery to Sublandlord the Security Deposit as set forth in the Defined Terms
of this Sublease.  Subtenant shall have
no right of occupancy of the Temporary Premises or Sublease Premises until
receipt by Sublandlord of the Security Deposit. 
The Security Deposit shall be held by Sublandlord, without liability for
interest, as security for the faithful performance by Subtenant of all of its
obligations under this Sublease. 
Sublandlord shall not be required to keep the Security Deposit separate
from its other accounts.  Sublandlord may
apply all or a part of the Security Deposit to any unpaid Rent due from
Subtenant or to cure any other default of Subtenant hereunder and to compensate
Sublandlord for all damage and expense sustained as a result of such
default.  If all or any portion of the
Security Deposit is so applied, Subtenant shall deposit cash sufficient to
restore the Security Deposit to its original amount within five (5) days after
receipt of Sublandlord’s written demand. 
Provided that Subtenant complies with all of its obligations hereunder
and promptly pays Rent when due, Sublandlord shall refund the Security Deposit
to Subtenant within sixty (60) days after the later of the expiration of
earlier termination of the Sublease or Subtenant’s vacating of the Sublease
Premises.  No trust relationship is
created herein between Sublandlord and Subtenant with respect to the Security
Deposit.  Any deposit under the Master
Lease which may be returned by the Master Landlord will be the property of
Sublandlord.

 

In lieu of a cash
Security Deposit, Subtenant shall deliver to Sublandlord a clean, irrevocable,
non-documentary and unconditional letter of credit (the “Letter of
Credit”) issued by and drawn upon a financial institution with credit ratings of at least “A-” (long term)
as issued by Standard and Poor’s and at least “A3” (long term) as issued by
Moody’s (provided that if such financial institution is then rated by only one of such rating bureaus, it
satisfies the aforesaid rating requirement for such rating bureau), and
otherwise acceptable to Sublandlord (the “Issuer”)
(Sublandlord may approve an Issuer with a credit rating below the rating set
forth above in its sole discretion), which Letter of Credit shall have a term
of not less than one year, be in form and content satisfactory to Sublandlord
(and substantially as shown on Exhibit E
to this Sublease), be for the account of Sublandlord, be in the amount of the
Security Deposit then required to be deposited hereunder, and be fully
transferable by Sublandlord to its successors and/or assigns under this
Sublease without the payment of any fees or charges, it being agreed that if
any such fees or charges shall be so imposed, then such fees or charges, shall
be paid by Subtenant.  The Letter of
Credit shall provide that it shall be deemed automatically renewed, without
amendment, for consecutive periods of one (1) year each thereafter during the
Sublease Term, unless the Issuer sends notice (the “Non-Renewal
Notice”) to Sublandlord by certified mail, return receipt requested,
not less than sixty (60) days next preceding the then expiration date of the
Letter of Credit that it elects not to have such Letter of Credit renewed.  Additionally, the Letter of Credit shall
provide that Sublandlord shall have the right, exercisable upon its receipt of
the Non-Renewal Notice, by sight draft on the Issuer, to receive the monies

 

 

represented by the existing Letter of Credit and in such event,
Sublandlord shall hold such proceeds pursuant to the terms of this Section as
a cash security pending the replacement of such Letter of Credit.  If an Event of Default shall have occurred
and be continuing with respect to any provision of this Sublease, including but
not limited to the provisions relating to the payment of Rent, Sublandlord may
apply or retain the whole or any part of the cash security so deposited or may
notify the Issuer and thereupon receive all the monies represented by the
Letter of Credit and use, apply, or retain the whole or any part of such
proceeds, as provided in this Section. 
Sublandlord shall also have the right at its option to make partial
draws upon the Letter of Credit to cure an Event of Default existing on a
current basis, without prejudicing any right of Sublandlord to make future
draws upon the Letter of Credit to address Events of Default occurring
subsequently.  Any portion of the cash
proceeds of the Letter of Credit drawn upon by Sublandlord and not so used or
applied by Sublandlord in satisfaction of the obligations of Subtenant as to
which such an Event of Default shall have occurred shall be retained by
Sublandlord as a cash Security Deposit as provided herein.  If Sublandlord applies or retains any part of
the cash security or proceeds of the Letter of Credit, as the case may be,
Subtenant shall, within five (5) days after written demand therefor, deposit
with Sublandlord the amount so applied or retained so that Sublandlord shall
have the full Security Deposit required pursuant to this Section on hand
at all times during the Term.  If
Subtenant shall fully and faithfully comply with all of the term, provisions,
covenants and conditions of this Sublease, the Letter of Credit shall be
returned to Subtenant after the Expiration Date and after delivery of
possession of the Sublease Premises to Sublandlord.  In the event of a transfer of Sublandlord’s
interest in the Premises, within thirty (30) days of notice of such transfer,
Subtenant, at Subtenant’s sole cost and expense, shall arrange for the transfer
of the Letter of Credit to the new Sublandlord, as designated by Sublandlord,
or have the Letter of Credit reissued in the name of the new Sublandlord and
Sublandlord shall thereupon be released by Subtenant from all liability for the
return of the reissued Letter of Credit, provided that Sublandlord shall return
the original Letter of Credit issued in Sublandlord’s name to Subtenant.  Subtenant acknowledges and agrees that the
Letter of Credit is a separate and independent obligation of the Issuer to
Sublandlord and that Subtenant is not a third party beneficiary of such
obligation.  In addition, Subtenant
agrees that Sublandlord’s right to draw upon the Letter of Credit in whole or
in part as set forth herein, shall not in any way be restricted, impaired,
altered or limited by virtue of any provision of the United States Bankruptcy
Code or any other law affecting creditors rights.  If the
credit rating of the Issuer is downgraded, at any time during the Term of this
Sublease, below the level of “A-” (long term) as issued by Standard and Poor’s
or below the level of “A3” (long term) as issued by Moody’s, Sublandlord may,
in Sublandlord’s sole discretion, require Subtenant to provide Sublandlord with
a replacement Letter of Credit from a new Issuer with credit ratings of at
least “A-” (long term) as issued by Standard and Poor’s and at least “A3” (long
term) as issued by Moody’s (provided that if such new Issuer is then rated by
only one of such rating bureaus, it satisfies the aforesaid rating requirement
for such rating bureau), and otherwise acceptable to Sublandlord.  Such replacement Letter of Credit shall be in
the form required by this Section 3(f) and shall be provided by Subtenant
within thirty (30) days following Sublandlord’s notice to Subtenant, and
Subtenant’s failure to timely so provide such replacement Letter of Credit
shall constitute an Event of Default. 
Upon Sublandlord’s receipt of such replacement Letter of Credit,
Sublandlord shall return the Letter of Credit originally issued by the
downgraded Issuer to Subtenant.

 

 

4.     Use.  The Sublease Premises shall be used for the
Permitted Uses only and for no other purpose or business without the prior
written consent of Master Landlord and Sublandlord.  At its own expense, Subtenant will procure,
maintain in effect and comply with all conditions of any and all permits,
licenses and other governmental approvals required for Subtenant’s use of the
Sublease Premises, except that Sublandlord shall be responsible to obtain
building permits and certificate(s) of occupancy in connection with the
Subtenant Improvements and the Temporary Premises Improvements.

 

5.               Assignment and Subletting.

 

(a) Transfer of Subleasehold Estate.  Subtenant shall not permit occupancy of the
Sublease Premises by any person or persons other than Subtenant or sell,
assign, encumber, sublease or otherwise transfer by operation of law or
otherwise (collectively, “Transfer”) the
Sublease Premises or this Sublease without Master Landlord’s and Sublandlord’s
prior written consent, which consent of Sublandlord shall not be unreasonably
withheld or conditioned, in either case subject to the provisions of Section 5.2.1
of the Master Lease as incorporated herein; provided, however, that prior to
assigning the Sublease or making fifty percent (50%) or more (cumulatively) of
the Sublease Premises available for subletting, Subtenant shall first offer to
Sublandlord, by written notice, the right to recapture all of the Sublease
Premises or the portion of the Sublease Premises which Subtenant intends to
sublet or assign.  Sublandlord shall give
its approval or reasons for disapproval, or election to recapture, within
fifteen (15) business days after Subtenant has requested Sublandlord’s consent
to such sublease or assignment.  If
Sublandlord so elects to recapture, Sublandlord and Subtenant shall enter into
an agreement terminating this Sublease with respect to the portion of the
Sublease Premises so recaptured by Sublandlord. 
Subtenant shall reimburse Sublandlord, as additional rent, for (i) all
of Sublandlord’s reasonable attorneys fees and other costs, charges and
expenses in connection with the review, processing, negotiation and
documentation of any request for Sublandlord’s and Master Landlord’s consents
to a proposed Transfer of the Sublease Premises (including, but not limited to,
amounts payable by Sublandlord to Master Landlord for its consent) and (ii)
twenty five percent (25%) of the excess of any subrent and other consideration
received by Subtenant by reason of such Transfer, over the sum of the Rent
payable hereunder, plus all of any bonus or excess rent payable by Sublandlord
to Master Landlord under the Master Lease by reason of such Transfer, after
deduction of the costs and expenses permitted to be deducted under Section 5.2.1
of the Master Lease.  Any Transfer in
violation of the terms of this Sublease shall be void and shall be of no force
or effect.  Any consent by Sublandlord or
Master Landlord to any Transfer shall apply only to the specific Transfer
thereby approved. Such consent shall not be construed as a waiver of Subtenant’s
obligations to obtain Sublandlord’s and Master Landlord’s consent to any
subsequent Transfer or as a modification or limitation of Sublandlord’s rights
hereunder.

 

(b) Assumption by Transferees.  Each and every assignee, transferee or
successor in interest of Subtenant, and their respective assignees, transferees
or successors in interest, shall immediately be and remain liable jointly and
severally with Subtenant and with each other for the payment of the Rent
payable under this Sublease and for the performance of all covenants,
agreements, terms and provisions of this Sublease on the part of Subtenant to
be performed to the end of the Sublease Term.

 

 

(c) Assignment of Subrents.  In the event of any Transfer, whether or not
in violation of the provisions of this Sublease, Sublandlord may, after an
Event of Default by Subtenant, collect Rent from the assignee of the Sublease,
or the subtenant or occupant or the Sublease Premises and apply the net amount
collected to the curing of any Event of Default hereunder in any order or
priority Sublandlord may elect, any unexpended balance to be applied by
Sublandlord against any Rent or other obligations subsequently becoming due,
but no such assignment, subletting, occupancy or collection of Rent shall be
deemed a waiver of the covenants in this Section 5, nor shall it be deemed
acceptance of the assignee, subtenant or occupant as a subtenant, or a release
of Subtenant from the full performance by Subtenant of all of the terms,
conditions and covenants of this Sublease.

 

(d) Voluntary Termination of Master Lease.  In the event that Master Landlord and
Sublandlord negotiate a voluntary termination of the Master Lease, then as long
as the Master Landlord and Subtenant have entered into a direct lease of the
Sublease Premises, this Sublease shall terminate concurrently therewith and
Sublandlord shall be relieved of its obligations, and released of all liability,
accruing under this Sublease from and after the effective date of such lease,
whereupon Subtenant shall attorn directly to the Master Landlord.

 

(e) Change of Control.  Subtenant may assign this Sublease or
sub-sublet any portion of the Sublease Premises without Sublandlord’s consent
(but subject to any Master Landlord consent rights under the Master Lease) to
(i) any successor of Subtenant resulting from an acquisition of all or
substantially all of Subtenant’s assets or a merger or consolidation of Subtenant
and (ii) any Affiliate of Subtenant (as hereinafter defined) whose net worth is
equal to or greater than the net worth of Subtenant as of the date hereof,
provided that Subtenant provides Sublandlord at least thirty (30) days prior
notice of such assignment or subletting pursuant to either of the foregoing
clauses (i) or (ii). As used herein, the term “Affiliate of
Subtenant” shall mean and refer to any entity controlled by,
controlling or under common control with Subtenant.

 

6.     Alterations.  Subtenant shall not make or suffer to be made
any alterations, additions or improvements (collectively “Alterations”)
in, on, or to the Sublease Premises without the prior written consent of
Sublandlord and Master Landlord. 
Subtenant shall notify Sublandlord (and Master Landlord, if applicable)
not less than five (5) business days in advance of commencing construction of
the Alterations so that Sublandlord and Master Landlord may post appropriate
notices of non-responsibility.  The term “Alterations” includes any alterations, additions or
improvements made by Subtenant to comply with the ADA as required by Section 1(f)
above.  All Alterations must be
constructed (a) in a good and workman-like manner using materials of a quality
comparable to those on the Sublease Premises, (b) in conformance with all Laws,
(c) only after all necessary permits, licenses and approvals have been obtained
by Subtenant from appropriate governmental agencies, and (d) shall be
diligently prosecuted to completion.  Any
contractor or other person making any Alterations must first be approved in
writing by Sublandlord and Master Landlord and Sublandlord may require that all
work be performed under Sublandlord’s supervision.  Subtenant’s performance of Alterations shall
be coordinated with any work being performed by Master Landlord and Sublandlord
in such manner as to maintain harmonious labor relations and not to damage the
Premises, the Building or Lot or interfere with the Premises, Building or Lot
operations.  Except where precluded by terms
of the Master Lease and Master Landlord’s rights in and to any Alterations to
any of the Sublease Premises, upon the expiration or sooner termination of this
Sublease, Subtenant shall,

 

 

upon demand by Sublandlord, at Subtenant’s sole cost and expense,
promptly remove any Alterations made or paid for by Subtenant and repair and
restore the Sublease Premises to their original condition, ordinary wear and
tear excepted; provided, however, Subtenant shall have no obligation to remove
any Alterations which were not identified for removal at the time Master
Landlord or Sublandlord gave its consent thereto.

 

Subtenant will keep the
Sublease Premises and the Building free from any liens arising out of any work
performed, materials furnished, or obligations incurred by Subtenant.  If a lien is filed, Subtenant will discharge
the lien or post a bond within ten (10) days after receiving notice
thereof.  Sublandlord has the right to post
and keep posted on the Sublease Premises any notices that may be provided by
law or which Sublandlord may deem to be proper for the protection of
Sublandlord, the Sublease Premises and the Building from such liens.  Subtenant shall promptly reimburse to
Sublandlord as additional rent hereunder, any fees or charges imposed on Sublandlord
under the Master Lease by virtue of Subtenant’s proposal or performance of any
Alterations.

 

7.               Indemnity.

 

(a) Subtenant Indemnity.  Subtenant shall indemnify, defend (by counsel
acceptable to Sublandlord and Master Landlord in their sole discretion),
protect and hold Sublandlord and Master Landlord and their respective
directors, officers, shareholders, partners, members, employees, contractors,
assigns and mortgagees harmless from and against any and all liabilities,
claims, demands, losses, damages, costs and expenses (including reasonable
attorneys’ fees) arising out of or relating to (i) the use or occupancy of the
Sublease Premises by Subtenant or its Agents or anyone claiming by, through or
under Subtenant; (ii) the failure by Subtenant or anyone claiming by, through
or under Subtenant to comply with any term, condition, or covenant of this
Sublease or the Master Lease incorporated herein, including, without
limitation, Subtenant’s obligation to surrender the Sublease Premises in the
condition herein required; (iii) the negligence or willful misconduct of
Subtenant, its Agents or anyone claiming by, through or under Subtenant; (iv)
the existence of Hazardous Materials (as hereinafter defined) on, under or
about the Sublease Premises to the extent caused, stored, released, discharged
or introduced by Subtenant or its Agents; (v) the death of or injury to any
person or damage to any property in the Sublease Premises (except to the extent
caused by the negligence or willful misconduct of Sublandlord or Master
Landlord); or (vi) the death of or injury to any person or damage to any
property on or about the Master Premises to the extent caused by the
negligence, recklessness or willful misconduct of Subtenant or its Agents.

 

(b) Sublandlord Indemnity.  Sublandlord shall indemnify, defend (by
counsel acceptable to Subtenant), protect and hold Subtenant and its assigns
harmless from and against any and all liabilities, claims, demands, losses,
damages, costs and expenses (including attorneys’ fees) arising out of or
relating to: (i) the existence of Hazardous Materials (as hereinafter defined)
on, under or about the Sublease Premises to the extent introduced upon the
Sublease Premises by Sublandlord, its agents, employees, contractors,
licensees, subtenants or invitees prior to the Commencement Date; or (ii) the
death of or injury to any person or damage to any property occurring outside
the Sublease Premises to the extent caused by the negligence, recklessness or
willful misconduct of Sublandlord or its agents, employees, contractors,
licensees, subtenants or invitees (other than Subtenant).

 

 

(c) In the
event that an indemnified party’s negligence, recklessness or willful
misconduct contributed to cause the injury or damage for which a claim of
indemnity is asserted against an indemnifying party hereunder, the damages and
expenses (including, without limitation, reasonable attorneys’ fees) shall be
allocated or reallocated, as the case may be, between the indemnified party and
the indemnifying party in such proportion as appropriately reflects the
relative fault of the two parties, and the liability of the indemnifying party
shall be proportionally reduced.  The
foregoing indemnification obligations are conditioned on the indemnified party
promptly notifying the indemnifying party in writing after any of the
indemnified parties receives notice of a claim or loss for which
indemnification is or may be sought under this Lease.  Failure to provide such notice will relieve
the indemnifying party of its indemnity obligations to the extent that such
failure prejudices the indemnifying party. 
The indemnifying party will have the right to control, in a manner not
adverse to the indemnified parties, the defense and settlement of any
claims.  The indemnified parties may
employ counsel, at their own expense, with respect to any such claim (provided
that if counsel is employed due to a conflict of interest or because the
indemnifying party does not assume control of the defense, the indemnifying
party will bear such expense).  The
indemnifying party will not admit liability or enter into any settlement of a
claim that adversely affects the indemnified parties’ rights or interests
without the indemnified parties’ prior written approval.  The indemnifications set forth in this Article 7
shall survive the expiration or earlier termination of this Sublease with
respect to any claims or liability occurring prior to such expiration or
termination.

 

(d) Notwithstanding
anything in this Sublease to the contrary, neither Subtenant nor any Subtenant
Party (as defined in paragraph 12 herein) shall under any circumstances be
liable for any exemplary, punitive, consequential or indirect damages (or for
any interruption of or loss to business), provided, that, (i)  damages owed by Sublandlord to Master
Landlord or its lender, or any successors and assigns to Master Landlord or its
lender, and (ii)  losses of rent suffered
by Subtenant and any claims raised by a proposed subtenant with respect to the
Sublease Premises or the Temporary Premises due to Subtenant holding over shall
be deemed direct damages for purposes of this subparagraph.

 

8.               Insurance.

 

(a) Subtenant Compliance with Insurance Requirements.  Subtenant shall not, directly or indirectly,
make any use of the Sublease Premises which may be dangerous to person or
property or which may jeopardize any insurance coverage or may increase the
cost of insurance or require additional insurance coverage.  If, by reason of any activity allowed by Subtenant
in the Sublease Premises, any insurance coverage is jeopardized or insurance
premiums are increased, Sublandlord shall require Subtenant to make immediate
payment of such increased insurance premium and upon payment of such premium
Subtenant shall not be deemed in default hereunder.  Subtenant may not self-insure against any
risks required herein to be covered by insurance.

 

(b) Subtenant’s Use of Consultants and Contractors.  In the event Subtenant utilizes the services
of consultants and/or contractors at the Sublease Premises, Subtenant shall at
its option either require such consultants and contractors to carry the minimum
insurance detailed below, or provide in Subtenant’s insurance policies for
insurance coverage for all such consultants and contractors with the same
minimum insurance requirements detailed below.

 

 

Sublandlord reserves the right to request from Subtenant copies of such
consultants’ and contractors’ certificates (to the extent such persons are not
covered under Subtenant’s insurance policies) when deemed necessary.

 

(c) Policy Requirements.  The policies carried by Subtenant as required
below shall be (i) shall be written by companies
licensed to do business in the state in which the Sublease Premises are located and have a General Policyholder’s
rating of at least A:VIII as set forth in the most current issue of Best’s
Insurance Guide, (ii) not be invalidated or reduced by the acts or omissions of
other insureds, or by any breach, violation or misrepresentation of any
warranties, declarations or conditions in such policy, (iii) name Master
Landlord, Sublandlord and any other additional insureds required to be named in
Sublandlord’s insurance policies under the Master Lease, and their respective
subsidiaries, affiliates, successors and assigns (and all such parties’ respective
officers, directors, shareholders, employees and agents) as additional insureds, and (iv) endorsed to stipulate that
Subtenant’s insurance shall be primary to and noncontributory with any and all
other insurance maintained or otherwise afforded to Sublandlord or Master
Landlord, and any other additional insureds required to be named in Sublandlord’s
insurance policies under the Master Lease, or their respective subsidiaries,
affiliates, successors and assigns (and all such parties’ respective officers,
directors, shareholders, employees and agents). 
The insurance policies required herein shall also comply with the
standards for insurance coverage set forth in the Master Lease, except that the
public liability insurance limits shall be as set forth in subparagraph (f)
below.

 

(d) Waiver of Subrogation.  To the extent permitted by law, and without
affecting the coverage provided by insurance to be maintained hereunder,
Subtenant and its respective insurers waive all rights of recovery or
subrogation against Sublandlord and Master Landlord, and their officers,
directors, employees, agents, and insurers for (i) damages for injury to or
death of persons; (ii) damage to property; (iii) damage to the Sublease
Premises or any part thereof; and (iv) claims arising by reason of the
foregoing due to hazards covered by insurance, to the extent of proceeds
recovered therefrom.  This provision is
intended to waive fully, and for the benefit of each party, any rights and/or
claims which might give rise to a right of subrogation in favor of any
insurance carrier.  The coverage obtained
by Subtenant pursuant to this Sublease shall include, without limitation, a
waiver of subrogation by the carrier which conforms to the provisions of this
paragraph.  If the insurance cannot be
obtained without undue expense, the other party may purchase such coverage for
the other at its own expense.

 

To the extent permitted
by law, and without affecting the coverage provided by insurance to be
maintained hereunder, Sublandlord and its respective insurers waive all rights
of recovery or subrogation against Subtenant, and its officers, directors,
employees, agents, and insurers for (i) damages for injury to or death of
persons; (ii) damage to property; (iii) damage to the Master Premises or any
part thereof; and (iv) claims arising by reason of the foregoing due to hazards
covered by insurance, to the extent of proceeds recovered therefrom.  This provision is intended to waive fully,
and for the benefit of each party, any rights and/or claims which might give
rise to a right of subrogation in favor of any insurance carrier.  Sublandlord’s insurance coverage shall
include, without limitation, a waiver or subrogation by the carrier which
conforms to the provisions of this paragraph. 
If the insurance cannot be obtained without undue expense, the other
party may purchase such coverage for the other at its own expense.

 

 

 

(e) Certificates of Insurance.  Certificates of insurance for all insurance
required hereby shall be furnished by Subtenant to Sublandlord and Master
Landlord before the Commencement Date and thereafter at least thirty (30) days
prior to each cancellation, non-renewal or material reduction in coverage that
causes the insurance to no longer meet the requirements of this Sublease.  The insurance certificates required hereby
shall provide that the insurance carrier shall endeavor to provide the
certificate holders with at least ten (10) days 
notice prior to the cancellation, non-renewal or adverse material change
in any policy covered thereby and shall otherwise be acceptable in form and
substance to Sublandlord, but any acceptance of insurance certificates by
Sublandlord shall not limit or relieve Subtenant of its obligations under this Section 8.  If any policy of insurance required to be
maintained by Subtenant pursuant to this Sublease is canceled or non-renewed,
Subtenant shall promptly replace the policy with a substantially similar policy
from an insurer with an A.M. Best’s Insurance Rating of A:VIII or better, and
Subtenant will provide evidence of same to Sublandlord.

 

(f) Subtenant’s Insurance Policies.  Subtenant shall, at its own expense, at all
times during the Sublease Term provide and maintain in effect those insurance
policies and minimum limits of coverage as designated below (provided, that
should Master Landlord require an increase in Sublandlord’s general liability
insurance coverage, Subtenant shall be required to increase the general
liability insurance coverage required hereunder by a similar percentage amount)
or by law of the State in which the Sublease Premises are located.

 

(i)                                     Workers’ Compensation and Employer’s Liability
Insurance.  Subtenant
shall carry Workers’ Compensation insurance as required by any applicable law
or regulation and, in accordance with the provisions of all applicable Laws.
Subtenant shall carry Employer’s Liability insurance with a limit of
$1,000,000.

 

(ii)                                  “All Risk” Insurance.  Subtenant shall carry “all risk” property
insurance, including fire, lightning, vandalism, malicious mischief, and
extended perils, on any Alterations (excluding Subtenant Improvements) and all
property owned by Subtenant or for which Subtenant is legally liable, or which
is located within the Sublease Premises, on a full replacement cost basis.  Such coverage shall include business
interruption coverage for a period of not less than six (6) months.  Master Landlord, Sublandlord and any other
additional insureds required to be named in Sublandlord’s insurance policies
under the Master Lease, and their respective subsidiaries, affiliates,
successors and assigns (and all such parties’ respective officers, directors,
shareholders, employees and agents) shall
be included as loss payees on such coverage, as their interests may appear.

 

(iii)                               Commercial
General Liability Insurance. 
Subtenant shall carry Commercial General Liability insurance having a
single limit of no less than $1,000,000 per occurrence or per claim and
$2,000,000 in the annual aggregate.  Such
insurance shall provide coverage for (a) bodily injury, property damage,
personal injury and advertising injury, (b) contractual liability, not only for
bodily injury and property damage but also for personal injury and advertising
injury, and (c) cross liability.  If such
insurance is maintained on a claims-made basis, then such insurance shall be

 

 

maintained for an additional period of three (3) years after
termination of this Sublease and any extension thereof.

 

(iv)                              Umbrella Liability and/or Excess Liability
Insurance.  Subtenant
shall maintain Umbrella Liability and/or Excess Liability insurance with limits
of no less than $3,000,000 per occurrence or per claim, excess of the limits
provided by the required Employer’s Liability, Commercial General Liability,
and Automobile Liability insurance.  The
coverage terms of the Umbrella Liability and/or Excess Liability insurance must
be at least as broad as the underlying Employer’s Liability, Commercial General
Liability and Automobile Liability insurance. 
The Umbrella Liability and/or Excess Liability insurance shall provide
contractual liability coverage.  If Subtenant
maintains such insurance on a claims-made basis, then Subtenant shall continue
to maintain such coverage for a period of three (3) years after termination of
this Sublease and any extension thereof.

 

(v)                                 Automobile Liability Insurance.  Subtenant shall carry Business Automobile
Liability insurance covering all owned, rented (hired) or non-owned vehicles
used in connection with this Lease or the Premises.  Such insurance shall have limits of
$1,000,000 each accident for bodily injury and property damage.

 

9. Signage.  Subtenant shall not place on any portion of
the Sublease Premises any sign, placard, lettering in or on windows, banners,
displays or other advertising or communicative material which is visible from
the exterior of the Sublease Premises without the prior written approval of
Sublandlord, which shall not be unreasonably withheld, and, if required, from
Master Landlord in accordance with the Master Lease; provided, however, that
subject to compliance with the terms of this Sublease and the Master Lease,
Subtenant shall have the right, at its sole cost and expense, to install suite
identification signage in the main lobby of the Building and on the floors on
which the Sublease Premises is located and identification signage on the
monument sign for the Building subject to Master Landlord’s sign criteria and
Master Landlord’s prior written approval, provided, however, that Subtenant’s
Building signage shall not interfere with Sublandlord’s existing Building
signage.  All such approved signs shall
strictly conform to all Laws.  Subtenant
shall maintain such signs in good condition and repair.  If Subtenant fails to remove such signs upon
the expiration or earlier termination of this Sublease, and repair any damage
caused by such removal, Sublandlord may do so at Subtenant’s expense, which
expense, together with interest thereon at the Interest Rate shall be paid by
Subtenant to Sublandlord upon demand.

 

10. Hazardous Materials.  Subtenant shall strictly comply with Article V
of the Master Lease to the extent such provisions relate to the Sublease
Premises during the Sublease Term. 
Subtenant, at its sole cost and expense, shall be fully responsible for
the storage and disposal of all Hazardous Materials used in, on or about the
Building by the Subtenant or its Agents.  Notwithstanding anything in this Sublease to
the contrary, Subtenant shall have no liability to Sublandlord or
responsibility under this Sublease for any Hazardous Materials in, on, under or
about the Sublease Premises which were not released, discharged, stored or
introduced by Subtenant or its Agents.

 

11. Estoppel Certificates.  Subtenant will at any time upon not less than
ten (10) business days’ prior written notice from Sublandlord execute,
acknowledge and deliver to Sublandlord a statement in writing
(i) certifying that this Sublease is unmodified (or, if modified,

 

 

stating the nature of
such modification) and is in full force and effect, the amount of any Security
Deposit, and the date to which Rent are paid in advance, if any,
(ii) acknowledging that there are not, to Subtenant’s knowledge, any
uncured defaults on the part of Sublandlord hereunder or of Master Landlord
under the Master Lease, or specifying such defaults if any are claimed, and
(iii) any other matters relating to the Sublease or the Sublease Premises as
may be reasonably requested by Sublandlord. 
Any such statement may be conclusively relied upon by any prospective
purchaser, transferee or encumbrancer of the Sublease Premises or of
Sublandlord’s interest in this Sublease.

 

12. Events of Default.  If one or more of the following events (“Event of Default”) occurs, such occurrence constitutes a
breach of this Sublease by Subtenant (such events being in addition to, and
superseding to the extent inconsistent with, the Events of Default set forth in
the Master Lease):

 

(a) Subtenant
fails to pay when due any Rent due hereunder and such failure shall continue
for five (5) days after written notice thereof from Sublandlord;

 

(b) Subtenant
fails to comply with any other provision of this Sublease in the manner and
within the time required, and such failure continues for twenty (20) days after
written notice thereof from Sublandlord, provided that if such failure cannot
be cured within such twenty (20) day period, an Event of Default shall not be
deemed to have occurred so long as (i) Subtenant commences such cure
within such twenty (20) day period and diligently pursues such cure to
completion, provided so that an “Event of Default” (as defined in the Master
Lease) is not deemed to have occurred under the Master Lease;

 

(c) any other
event occurs which involves Subtenant or the Sublease Premises and which would
constitute an Event of Default under the Master Lease if it involved
Sublandlord or the Master Premises;

 

(d) the
occurrence of an Event of Default under the Master Lease which is the result of
any act or omission of Subtenant or any person claiming by, through or under
Subtenant or any of their respective employees, subtenants, licensees, agents,
contractors and invitees (each, a “Subtenant Party”);
or

 

(e) any
purported or attempted Transfer of this Sublease or the Sublease Premises in
contravention of this Sublease or the Master Lease; or

 

(f) Subtenant
(i) files or consents by answer or otherwise to the filing against it of a
petition for relief or reorganization or arrangement or any other petition in
bankruptcy or liquidation or to take advantage of any bankruptcy or insolvency
law of any jurisdiction; (ii) makes an assignment for the benefit of its
creditors; (iii) consents to the appointment of a custodian, receiver,
trustee or other officer with similar powers of itself or of any substantial
part of its property; or (iv) takes action for the purpose of any of the
foregoing;

 

(g) A court
or governmental authority of competent jurisdiction, without consent by
Subtenant, enters an order appointing a custodian, receiver, trustee or other
officer with similar powers with respect to it or with respect to any
substantial portion of its property, or constituting an order for relief or
approving a petition for relief or reorganization or any other

 

 

petition in bankruptcy or
insolvency law of any jurisdiction, or ordering the dissolution, winding up or
liquidation of Subtenant, or if any such petition is filed against Subtenant
and such petition is not dismissed within sixty (60) days; or

 

(h) This
Sublease or any estate of Subtenant hereunder is levied upon under any
attachment or execution and such attachment or execution is not vacated within
sixty (60) days.

 

Upon the occurrence of an Event of Default,
Sublandlord shall have, in addition to any other rights and remedies available
to it under this Sublease and/or at law and/or in equity, any and all rights
and remedies of Master Landlord set forth in the Master Lease as incorporated
herein.  All rights and remedies of
Sublandlord herein enumerated shall be cumulative and none shall exclude any
other right allowed by law or in equity and said rights and remedies may be
exercised and enforced concurrently and whenever and as often as occasion
therefor arises.  If Subtenant shall have
committed an Event of Default, then Sublandlord shall have the right, but not
the obligation, without waiving or releasing Subtenant from any obligations
hereunder, to cure such Event of Default in such manner and to such extent as
Sublandlord shall deem necessary, and in exercising any such right, to pay or
incur any reasonable costs and expenses (including, without limitation,
attorneys’ fees and costs) required in connection therewith which Subtenant
shall pay to Sublandlord upon, together with interest thereon at the Interest
Rate.

 

13. Other Casualty; Eminent Domain.  In the event of a fire or other casualty
affecting the Building or the Sublease Premises, or of a taking of all or a
part of the Building or Sublease Premises under the power of eminent domain:  (i) Sublandlord shall not have any obligation
to repair or restore the Sublease Premises or any Alterations or personal
property; (ii) Subtenant shall be entitled only to a proportionate abatement of
Rent to the extent Sublandlord receives a corresponding abatement of rent under
the Master Lease during the time and to the extent the Sublease Premises are
unfit for occupancy for the purposes permitted under this Sublease and not
occupied by Subtenant as a result thereof; (iii) Subtenant shall not, by
reason thereof, have a right to terminate this Sublease unless the Master Lease
shall be terminated or the Sublease Premises cannot reasonably be restored
within one year following the casualty or taking event; and (iv) Sublandlord
reserves the right to terminate the Master Lease and this Sublease in
connection with any right granted to it under the Master Lease whether or not
the Sublease Premises is damaged or the subject of a taking.  In the event Master Landlord or Sublandlord
exercises the right to terminate the Master Lease as the result of any such
fire, casualty or taking, (a) Sublandlord shall provide Subtenant with a copy
of the relevant termination notice and this Sublease shall terminate on the
date upon which the Master Lease terminates and (b) Subtenant shall immediately
pay to Sublandlord all of Subtenant’s insurance proceeds relating to all
Alterations (but not to Subtenant’s personal property).

 

14. Waiver of Claims.  Subtenant hereby releases and waives any and
all claims against Master Landlord and Sublandlord and each of their respective
officers, directors, partners, members, agents and employees for injury or
damage to person, property or business of every kind, nature and description,
sustained in or about the Building or the Sublease Premises by Subtenant or
anyone claiming under Subtenant, other than by reason of the negligence or
willful misconduct of Master Landlord or Sublandlord and except in any case
which would render this release and waiver void under applicable law.

 

 

15. Limit of Sublandlord’s Liability.  Notwithstanding anything to the contrary
contained in this Sublease, Sublandlord, its partners, members, officers,
directors, employees, agents, servants and contractors (collectively, the “Sublandlord Parties”), shall not be liable for any damages
or injury to person or property or resulting from the loss of use thereof
sustained by Subtenant or any Subtenant Party, based on, arising out of, or
resulting from, any cause whatsoever, including any due to the Building
becoming out of repair, or due to the occurrence of any accident or event in or
about the Building, or due to any act or neglect of any tenant or occupant of
the building or any other person except to the extent due to Sublandlord’s
negligence or willful misconduct. 
Neither Sublandlord nor any Sublandlord Party shall under any
circumstances be liable for any exemplary, punitive, consequential or indirect
damages (or for any interruption of or loss to business).

 

16. Miscellaneous.

 

(a) Attorneys’ Fees.  In the event of any litigation or arbitration
between Sublandlord and Subtenant, whether based on contract, tort or other
cause of action or involving bankruptcy or similar proceedings, in any way
related to this Sublease, the non-prevailing party shall pay to the prevailing
party all reasonable attorneys’ fees and costs and expenses of any type,
without restriction by statute, court rule or otherwise, incurred by the
prevailing party in connection with any action or proceeding (including
arbitration proceedings, any appeals and the enforcement of any judgment or
award). Any fees and cost incurred in enforcing a judgment shall be recoverable
separately from any other amount included in the judgment and shall survive and
not be merged in the judgment.

 

(b) Authority.  Each person executing this Sublease on behalf
of a party hereto represents and warrants that he or she is authorized and
empowered to do so and to thereby bind the party on whose behalf he or she is
signing.

 

(c) Brokerage Commissions.  Sublandlord
shall pay a commission to Broker in connection with this Sublease transaction
pursuant to Sublandlord’s separate agreement with Broker.  Except for Broker, each of Subtenant and
Sublandlord warrants and represents to the other that it has dealt with no
other broker or agent in connection with this Sublease transaction.  Each of Sublandlord and Subtenant agrees to
indemnify, defend and save harmless the other and Master Landlord from any and
all costs, expenses, attorneys’ fees, charges or liability arising out of any
claim by any broker or agent, other than the Broker, as a result of such party’s
conversations, correspondence, other dealings or actions in connection with
this Sublease.

 

(d) Captions.  All captions and headings in this Sublease
are for the purposes of reference and convenience and shall not limit or expand
the provisions of this Sublease.

 

(e) Counterparts.  This Sublease may be executed in any number
of counterparts, each of which shall be deemed to be an original and all of
which taken together shall comprise but a single instrument.

 

(f) Entire Agreement.  This Sublease and the applicable portions of
the Master Lease contained by reference herein, contain all of the covenants,
conditions and agreements between the parties concerning the Sublease Premises,
and shall supersede any and all prior 

 

 

correspondence,
agreements and understandings concerning the Sublease Premises, both oral and
written.  No addition or modification of
any term or provision of this Sublease shall be effective unless set forth in
writing and signed by both Sublandlord and Subtenant.

 

(g) Notices.  Any notice required or desired to be given
regarding this Sublease shall be in writing and may be given by personal
delivery, reputable next-day courier service, or by certified or registered mail.  A notice shall be deemed to have been given
(i) on the third business day after mailing if mailed, postage prepaid,
return receipt requested addressed to the party to be served at its address
specified in the Defined Terms, and (ii) when delivered or refused if
given by personal delivery or courier service. 
Copies of notices of defaults under this Sublease shall be concurrently
provided to Master Landlord at the address set forth in the Master Lease.  Either party may change its address by giving
notice of the same in accordance with this Section (g).

 

(h) Governing Law.  This Sublease shall be governed by and
construed in accordance with the laws of the Commonwealth of
Massachusetts.  Subtenant hereby consents
to the personal jurisdiction and venue of any State court located in the county
in which the Building is located.

 

(i) Exhibits.  All exhibits and any schedules or riders
attached to this Sublease are incorporated herein by this reference and made a
part hereof, and any reference in the body of the Sublease or in the exhibits,
schedules or riders to the Sublease shall mean this Sublease, together with all
exhibits, schedules and riders.

 

(j) Waiver of Trial by Jury.  SUBTENANT AND SUBLANDLORD HEREBY WAIVE ANY
AND ALL RIGHTS IT MAY HAVE UNDER APPLICABLE LAW TO TRIAL BY JURY WITH RESPECT
TO ANY DISPUTE ARISING DIRECTLY OR INDIRECTLY IN CONNECTION WITH THIS SUBLEASE
OR THE SUBLEASE PREMISES.  NOTHING
CONTAINED IN THIS SECTION (j) SHALL BE CONSTRUED AS A WAIVER BY MASTER
LANDLORD OF ANY OF ITS RIGHTS TO TRIAL BY JURY IN CONNECTION WITH THE MASTER
LEASE OR SUBLEASE FOR ANY CLAIMS OR CAUSES OF ACTION SO TRIABLE.

 

(k) Successors and Assigns.  Subject to the provisions of this Sublease
and the Master Lease relating to assignment and subletting, this Sublease shall
be binding upon, and shall inure to the benefit of the parties’ respective
representatives, successors and assigns. 
No sublandlord of the Temporary Premises or Sublease Premises shall be
liable under this Sublease except for breaches of Sublandlord’s obligations
occurring while sublandlord of the Temporary Premises or Sublease Premises, as
applicable.  Without limiting the
generality of the foregoing, upon any assignment of this Sublease and the
Security Deposit by Vertex Pharmaceuticals Incorporated to an Affiliate of
Sublandlord or a third party, Vertex Pharmaceuticals Incorporated shall have no
further liability or obligation arising pursuant to this Sublease after the
date of such assignment.  No member, partner,
trustee, stockholder, officer, director, employee or beneficiary (or the
members, partners, trustees, stockholders, officers, directors or employees of
any such member) of Sublandlord shall be personally liable under this Sublease
and the general assets of the members, partners, trustees, stockholders,
officers, directors, employees or beneficiaries (and the members, partners,
trustees, stockholders, officers, directors or employees of any such

 

 

member) of Sublandlord
shall not be subject to levy, execution or other enforcement procedure for the
satisfaction of the remedies of Subtenant; provided that the foregoing
provisions of this sentence shall not constitute a waiver of any obligation
evidenced by this Sublease and provided further that the foregoing provisions
of this sentence shall not limit the right of Subtenant to name Sublandlord or
any member thereof as party defendant in any action or suit in connection with
this Sublease so long as no personal money judgment shall be asked for or taken
against any such member or any individual partner, trustee, stockholder,
officer, employee or beneficiary of Sublandlord or any such member.

 

(l) Access.  Sublandlord reserves the right to enter the
Sublease Premises upon reasonable prior written or oral notice to Subtenant
(except that in case of emergency no notice shall be necessary) in order to
inspect the Sublease Premises and/or the performance by Subtenant of the terms
of this Sublease or to exercise Sublandlord’s rights or perform Sublandlord’s
obligations hereunder.  Subtenant shall permit
Sublandlord and Sublandlord’s agents and representatives to enter into and upon
any part of the Temporary Premises at reasonable hours upon reasonable prior
written or oral notice to Subtenant to show the Temporary Premises to
prospective mortgagees, insurers, or tenants. 
Subtenant shall also permit Sublandlord and Sublandlord’s agents and
representatives to enter into and upon any part of the Sublease Premises at
reasonable hours upon reasonable prior written or oral notice to Subtenant to
show the Sublease Premises to prospective mortgagees, insurers, or in the last
twelve (12) months of the Sublease Term, tenants.

 

(m) Time.  Time is of the essence of every provision of
this Sublease.

 

(n) Office of Foreign Asset Control.  Subtenant warrants and represents to
Sublandlord that Subtenant is not, and shall not become, a person or entity
with whom Sublandlord is restricted from doing business under regulations of
the Office of Foreign Asset Control (“OFAC”) of the Department of the Treasury
(including, but not limited to, those named on OFAC’s Specially Designated and
Blocked Persons list) or under any statute, executive order (including, but not
limited to, the September 24, 2001, Executive Order Blocking Property and
Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or
Support Terrorism) or other governmental actions, and Subtenant shall at all
times be in compliance with all applicable orders, rules, regulations and
recommendations of OFAC and other governmental agencies.

 

(o) Master Landlord’s Consent.  The effectiveness of this Sublease is
conditioned upon receipt of Master Landlord’s Consent.  Notwithstanding anything in this Sublease to
the contrary, in the event Master Landlord’s Consent is not received within
thirty (30) days after the date of this Sublease, or such later date or
Sublandlord and Subtenant may agree in writing, this Sublease shall
automatically become null and void, in which case Sublandlord shall return any
Security Deposit and prepaid Rent to Subtenant.

 

(p) Notice of Sublease.  At the requires of either party, Sublandlord
and Subtenant will execute and record a notice of sublease pursuant to M.G.L.
c.183, § 4.

 

 

IN WITNESS WHEREOF, Sublandlord
and Subtenant have duly executed this Sublease as of the day and year first
above written.

 

	
  SUBLANDLORD:

  	
  SUBTENANT:

  
	
   

  	
   

  
	
  VERTEX PHARMACEUTICALS

  INCORPORATED

  	
  MOMENTA PHARMACEUTICALS,

  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/Kenneth S. Boger

  	
   

  	
  By:

  	
  /s/Richard P. Shea

  
	
  Name:

  	
  Kenneth S. Boger

  	
   

  	
  Name:

  	
  Richard P. Shea

  
	
  Title:

  	
  Senior Vice President & General Counsel

  	
   

  	
  Title:

  	
  Vice President, Treasurer & CFO

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  

 

 

Schedule 1

 

Rent

 

Fixed Rent:

 

	
  Premises:

  	
   

  	
  Rental Period:

  	
   

  	
  Annual Rent

  Per Rentable

  Square Foot:

  	
   

  	
  Annual Fixed

  Rent:

  	
   

  	
  Payable in

  Monthly Installments:

  	
   

  
	
  (i)
  Temporary Premises (“Temporary Premises Fixed Rent”)

  	
   

  	
  From the Temporary
  Premises Rent Commencement Date through the date immediately preceding the
  Sublease Premises Commencement Date

  	
   

  	
  $

  	
  [**

  	
  ] 

  	
  $

  	
  [**

  	
  ] 

  	
  $

  	
  [**

  	
  ] 

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (ii)
  Sublease Premises (“Sublease Premises Fixed Rent”)

  	
   

  	
  (a From the Sublease
  Premises Rent Commencement Date through April 30, 2006)

  	
   

  	
  $

  	
  [**

  	
  ] 

  	
  $

  	
  [**

  	
  ] 

  	
  $

  	
  [**

  	
  ] 

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b) From May 1, 2006
  through April 30, 2011

  	
   

  	
  $

  	
  [**

  	
  ] 

  	
  $

  	
  [**

  	
  ] 

  	
  $

  	
  [**

  	
  ] 

  

 

The Annual Rent and
Monthly Rent for the Sublease Premises shall be subject to adjustment based on
changes in the rentable square footage determined by remeasurement of the
Sublease Premises in accordance with Section 1(l).

 

 

EXHIBIT A

 

MASTER LEASE

 

 

EXHIBIT B

 

TEMPORARY
PREMISES

 

 

EXHIBIT C-1 & C-2

 

SUBLEASE PREMISES

 

 

EXHIBIT D

 

PRELIMINARY PLANS FOR TEMPORARY
PREMISES IMPROVEMENTS

 

 

EXHIBIT E

 

Form of
Letter of Credit

 

 

EXHIBIT F

 

FORM OF
COMMENCEMENT DATE AGREEMENT

 

COMMENCEMENT
DATE AGREEMENT

 

THIS COMMENCEMENT
DATE AGREEMENT (“Agreement”) is
entered into as of this        day of                        ,
20     by and between VERTEX PHARMACEUTICALS
INCORPORATED (“Sublandlord”)
and MOMENTA PHARMACEUTICALS, INC. (“Subtenant”).

 

W I T N E
S S E T H:

 

1.                                       This
Agreement is made pursuant to Section 1(a) of that certain Sublease dated
as of                                    ,
20    , between Sublandlord and Subtenant (the “Sublease”).

 

2.                                       It
is hereby stipulated that the Commencement Date, as defined in the Sublease, is
                                  ,
20     and the Term of the Sublease shall expire on                              ,
20     as set forth and provided for in the Sublease.

 

[OPTIONAL:

 

3.                                       It
is hereby stipulated that the Rent Commencement Date, as defined in the
Sublease, is                             ,
20     .

 

4.                                       It
is hereby stipulated that the Sublease Premises contain                   
rentable square feet.

 

 

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

 

	
   

  	
  SUBLANDLORD:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  VERTEX PHARMACEUTICALS INCORPORATED

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SUBTENANT:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MOMENTA PHARMACEUTICALS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
												

 

 

EXHIBIT TI

INITIAL SUBTENANT IMPROVEMENTS

 

Sublandlord and Subtenant agree as follows with
respect to the Subtenant Improvements to be installed in the Sublease Premises:

 

1.                                       Plans
and Specifications.

 

(a) Preliminary
Working Plans.

 

(i)                                     No
later than September 30, 2004, Subtenant shall provide Sublandlord with
progress prints, including development drawings and an equipment matrix with
adequate information for Sublandlord to prepare a permit application for
submission to the municipality to undertake the Subtenant Improvements (“Permit
Plans”).  The cost of such Permit Plans
shall be paid by Subtenant, subject to reimbursement by Sublandlord as part of
Sublandlord’s Contribution (as defined below). Sublandlord shall be responsible
for having mechanical, electrical and plumbing engineering design prepared for
the Subtenant Improvements (“MEP Design”).

 

(ii)                                  Within
five (5) business days after receipt of comments or a request for additional
information from Sublandlord with respect to the Permit Plans, Subtenant shall
respond to such comments or provide such additional information to Sublandlord
as necessary in order for Sublandlord to obtain permits necessary to complete
the Subtenant Improvements.  Within five
(5) business days after Subtenant’s receipt of draft preliminary MEP Design,
Subtenant shall provide Sublandlord with comments on the MEP Design.

 

(iii)                               No later than October 29,
2004, Subtenant shall submit to Sublandlord a complete set of design
development drawings including architectural layout, equipment locations, and
equipment matrix (“Preliminary Working Plans”). 
Such Preliminary Working Plans shall be subject to Sublandlord’s
approval (which Sublandlord shall not unreasonably withhold or delay if such
Preliminary Working Plans are consistent with the Permit Plans) and Master
Landlord’s approval if required under the Master Lease.  If disapproved by Sublandlord and/or Master
Landlord, Subtenant shall cause its architect to revise such Preliminary
Working Plans pursuant to Sublandlord’s and/or Master Landlord’s comments and
deliver to Sublandlord and Master Landlord, within five (5) business days after
receipt by Subtenant of such comments, revised Preliminary Working Plans noting
the changes.  The cost of such Preliminary
Working Plans, and required revisions, shall be paid by Subtenant, subject to
reimbursement by Sublandlord as part of Sublandlord’s Contribution (as defined
below).  Such working drawings when
approved by Sublandlord and Master Landlord (as applicable) are referred to
herein as the “Working Plans”.

 

 

(b) Cooperation.  Subtenant and Sublandlord shall cooperate
with the other’s architect, engineer or space planner as promptly as possible
and in any event in sufficient time to cause the Working Plans to be prepared
and timely delivered as hereinabove required.

 

(c) No
Representations.  Neither review nor
approval by Sublandlord of any of the Working Plans shall constitute a
representation or warranty by Sublandlord that such Working Plans either (i)
are complete or suitable for their intended purpose or (ii) comply with
applicable laws, ordinances, codes and regulations, it being expressly agreed
by Subtenant that Sublandlord assumes no responsibility or liability whatsoever
to Subtenant or to any other person or entity for such completeness,
suitability or compliance.

 

2.                                       Construction
of Subtenant Improvements. 

 

(a) Construction
Budget.  Promptly after Sublandlord and
Master Landlord have approved the Working Plans, Sublandlord shall obtain a
proposed construction budget estimate for the Subtenant Improvements from
William A. Berry & Son, Inc., to perform Subtenant Improvements (“Sublandlord’s
Contractor”) and shall provide the proposed budget estimate to Subtenant.  Subtenant shall have five (5) days to review
and provide comments on such proposed budget estimate including any reductions
in the scope of work that Subtenant desires to reduce the proposed budget
estimate.

 

(b) Construction
by Sublandlord.  After Subtenant review
and comment on the proposed budget estimate, Sublandlord shall have Sublandlord’s
Contractor finalize the budget and Sublandlord shall then obtain a bid from
Sublandlord’s Contractor.  Sublandlord’s
Contractor shall obtain at least three (3) bids for each trade comprising the
Subtenant Improvements.  Subtenant may
provide Sublandlord with the name of one qualified subcontractor from each
trade to invite to bid.  Sublandlord
shall review all bids with Subtenant with respect to the costs of each trade
and Sublandlord’s Contribution (as defined below), but Sublandlord shall have
the final authority to accept or reject any subcontractor bid; provided, that
if Sublandlord does not select the lowest bidder Sublandlord will bear the
incremental costs of the higher bidder if and to the extent selection of such
bidder causes the Sublandlord’s Contribution to be exceeded.  Sublandlord shall also promptly apply for all
permits necessary to undertake Subtenant Improvements.  Promptly thereafter, and upon Subtenant and Sublandlord
reaching agreement as to the total Subtenant Improvements Costs as provided in
Paragraph 3(b) below, Sublandlord shall cause Sublandlord’s Contractor to
perform the Subtenant Improvements in a good and workmanlike manner.  Subtenant may engage, at its sole cost and
expense, a representative that may participate in weekly meetings with
Sublandlord and Sublandlord’s Contractor.

 

(c) Additional
Work.  Except to the extent described
herein, Sublandlord has no obligation to do or pay for any other work to the
Sublease Premises (or any plans or specifications relating thereto) other than
Subtenant Improvements.  Any other work
in the Sublease Premises that Subtenant may request and that Sublandlord may
permit shall be done by Subtenant at Subtenant’s sole cost and expense and in
accordance with the terms and conditions set forth in the Sublease (“Additional
Work”).

 

 

3.                                       Cost
of the Subtenant Improvements And Allowance. 

 

(a) Subtenant
Improvements Cost.  The costs of
Subtenant Improvements (“Subtenant Improvements Costs”) shall include all costs
and expenses incurred by Sublandlord in preparing (or reimbursing Subtenant
for) the Permit Plans, MEP Design, Preliminary Working Plans, Working Plans and
performing Subtenant Improvements, including without limitation;

 

(i)                                     All
costs incurred by Sublandlord in connection with preparation, review and
approval of the Permit Plans, MEP Design, Preliminary Working Plans, Working
Plans (and plans and specifications for Additional Work, if any);

 

(ii)                                  All
costs of obtaining building permits and other necessary authorizations from the
applicable governmental authority; and

 

(iii)                               All direct and indirect
costs of procuring and installing Subtenant Improvements including without
limitation Sublandlord’s Contractor’s fee for overhead and profit, and the cost
of Sublandlord’s Contractor’s on-site supervisory and administrative staff
provided in connection with construction of Subtenant Improvements and
Additional Work, if any, all permit and inspection fees and charges, and any
costs incurred by or charged to Sublandlord for (1) unforeseen field
conditions, (2) substitution of materials or finishes due to the unavailability
of materials or finishes specified in the Working Plans (and plans and
specifications for Additional Work, if any) that would materially delay
substantial completion of Subtenant Improvements and Additional Work, if any,
(3) necessary modification of any portions of the Building or its systems to
accommodate Subtenant Improvements and Additional Work, if any, and (iv) any
changes to comply with applicable laws, regulations, codes or ordinances and/or
the requirements of any building inspector with jurisdiction over Subtenant
Improvements and Additional Work, if any.

 

(b) Cost of
Subtenant Improvements.  Sublandlord
shall pay up to a maximum of [**] Dollars per rentable square foot of the
Sublease Premises toward Subtenant Improvements Costs (“Sublandlord’s
Contribution”).  Subtenant shall pay
Sublandlord, as additional rent under the Sublease due within ten (10) days
after invoice from Sublandlord according to the schedule described below,
(i) all Subtenant Improvements Costs in excess of Sublandlord’s Contribution,
(ii) all Subtenant Improvements Costs attributable to Additional Work, and
(iii) all Subtenant Improvements Costs arising due to the negligence or willful
misconduct of Subtenant (all such amounts being referred to as “Subtenant’s
Contribution”).  Subtenant’s Contribution
shall be paid to Sublandlord as follows: 25% with the authorization to proceed;
50% once the Subtenant Improvements are 50% Substantially Complete; and 25%
once the Subtenant Improvements are Substantially Complete.  If Subtenant Improvements Cost is less than
Sublandlord’s Contribution, Subtenant shall not be entitled to any credit or
payment for said unused amounts.  The
parties acknowledge that the scope of the Subtenant Improvements is not
expected to exceed Sublandlord’s Contribution and that, in the event that the
Subtenant Improvements Costs exceed Sublandlord’s Contribution, at Subtenant’s
request, the parties shall cooperate to change the scope of the Subtenant
Improvements within the time frames set forth in paragraphs 1 and 2 above so as
to reduce the Subtenant Improvements Costs. 
At such time, Sublandlord shall

 

 

provide cost information
as reasonably necessary to facilitate such change of scope.  Subtenant agrees, within seven (7) days
after final agreement with Sublandlord of the Subtenant Improvements Costs, to
execute and deliver to Sublandlord, in the form then in use by Sublandlord, an
authorization to proceed with Subtenant Improvements.

 

4.                                       Substantial
Completion And Subtenant Delay

 

(a) Substantial
Completion.  At such time as Sublandlord
considers the Subtenant Improvements to be substantially completed, Sublandlord
or Sublandlord’s representative will schedule a walk-through of the
Sublease Premises with Subtenant or Subtenant’s representative.  During such walk-through, Sublandlord or
Sublandlord’s representative along with Subtenant or Subtenant’s representative
will prepare a list of minor finish-out and punch list items to be completed
(the “Punch List”).  Sublandlord shall
cause Sublandlord’s Contractor to complete and/or correct all items on the
Punch List promptly after Sublandlord receives the Punch List and shall give
Subtenant written notice when all of the items on the Punch List have been
completed and/or corrected.  Any items
not on the Punch List which could have, with reasonable diligence, been
discovered by Subtenant or Subtenant’s representative and included on the Punch
List shall be deemed accepted by Subtenant, and any items not on the Punch List
which could not have, with reasonable diligence, been discovered by Subtenant
or Subtenant’s representative and included on the Punch List and are thereafter
discovered by Subtenant within thirty (30) days after Substantial Completion
shall be corrected by Sublandlord’s Contractor promptly after Sublandlord
receives notice of the same from Subtenant. 
If Subtenant and/or Subtenant’s representative fails to appear for such
inspection, Subtenant shall be deemed to have agreed that no items exist that
are incomplete or require correction which could have, with reasonable
diligence, been discovered by Subtenant or Subtenant’s representative had
Subtenant and/or Subtenant’s representative appeared at the inspection, and
therefore Subtenant Improvements has been completed and Sublandlord shall not
be required to complete or correct any such items which may in fact exist; or
at Sublandlord’s election, Sublandlord or Sublandlord’s representative may
prepare and approve the Punch List on Subtenant’s behalf.  Subtenant Improvements (which for purposes of
determining substantial completion may exclude, at Sublandlord’s election, any
Additional Work) shall be considered “Substantially Complete” for all purposes
under this Exhibit TI and the Sublease when: 
(i) the applicable governmental authority issues a temporary or
permanent certificate of occupancy for the Sublease Premises, or (ii) Subtenant
first takes occupancy of the Sublease Premises for the conduct of its business,
whichever first occurs.

 

(b) Subtenant
Delay.  There shall be no extension of
the Sublease Premises Rent Commencement Date of the Sublease if the Subtenant
Improvements have not been substantially completed by reason of any delay caused
by Subtenant, its agents, employees or contractors (“Subtenant Delay”),
including without limitation, any delay arising as a result of:

 

(i)                                     Subtenant’s
failure to devote the time or furnish the information required under Paragraphs
1 or 2 hereof or respond within the time periods required under Paragraphs 1 or
2 hereof or Subtenant’s failure to approve cost estimates for Subtenant
Improvements and, if applicable, Subtenant’s Contribution, within the time
periods specified in Paragraphs 2(b) and 
3(b) hereof; or

 

 

(ii)                                  Subtenant’s
changes in Subtenant Improvements or in the Working Plans after initial
approval (notwithstanding Sublandlord’s approval of any such changes);

 

(iii)                               Failure by Subtenant to
procure key critical path items identified by Sublandlord or Sublandlord’s
Contractor; or

 

(iv)                              Any
other act or omission by Subtenant, its agents, employees or contractors;

 

5.                                       Access
By Subtenant Prior To Completion Of Subtenant Improvements.

 

(a) Conditions
of Entry.  Sublandlord shall permit
Subtenant, its agents, employees and contractors to enter the Sublease Premises
thirty (30) days prior to the date specified as the Sublease Premises Rent
Commencement Date of the Sublease in order that Subtenant may make the Sublease
Premises ready for Subtenant’s use and occupancy.  Such entry shall constitute a license only
and not a lease, and such license shall be conditioned upon Subtenant, its
agents, employees and contractors working in harmony and not interfering with
Sublandlord and Sublandlord’s agents, contractors, workmen, mechanics, and
suppliers in doing Subtenant Improvements or any other work in the Sublease
Premises or the Building or with other Subtenants and occupants of the
Building.  Sublandlord shall have the
right to withdraw such license for cause upon twenty-four (24) hours’ written
notice to Subtenant.  Subtenant agrees
that any such entry into and occupation of the Sublease Premises shall be
deemed to be under all of the terms, covenants, and provisions of the Sublease
except as to the covenant to pay Rent. 
Subtenant further agrees that it shall be solely responsible for the
safety of any such work performed, that Sublandlord shall not be liable in any
way for any injury, loss, or damage that may occur to any of Subtenant’s
property placed or installations made in the Sublease Premises prior to the
Sublease Premises Rent Commencement Date or to Subtenant, its agents, employees
or contractors, the same being at Subtenant’s sole risk.  Subtenant agrees to protect, defend,
indemnify, and save harmless Sublandlord from all liabilities, costs, damages,
fees, and expenses arising out of or in connection with the activities of
Subtenant or its agents, employees, contractors, suppliers, or workmen in or
about the Sublease Premises or the Building.

 

(b) Insurance.  In the event Subtenant employs contractors to
do work in the Sublease Premises, Subtenant shall cause all such contractors to
secure and pay for Workmen’s Compensation, Employer’s Liability Insurance, and
Comprehensive General Liability Insurance in forms and amounts acceptable to
Sublandlord.  All policies shall be
endorsed to include Sublandlord and its employees and agents as additional
insured parties.  Certificates of
insurance for such policies, in a form acceptable to Sublandlord, shall be
delivered to Sublandlord prior to Subtenant’s contractors commencing any work
in the Sublease Premises.  If Subtenant’s
contractors perform work on the Sublease Premises, Subtenant shall obtain full
and final lien waivers from its contractors and their subcontractors covering
all work performed for Subtenant, in a form acceptable to Sublandlord, and
provide to Sublandlord copies of same.

 

(c) Ingress
and Egress.  All persons and entities
performing work in or supplying materials to the Sublease Premises on behalf of
Subtenant shall use only those service corridors and service entrances
designated by Sublandlord for ingress and egress of personnel, and the delivery
and removal of equipment and material through or across any common areas of the

 

 

Building shall only be
permitted with the written approval of Sublandlord, not to be unreasonably
withheld, and during hours reasonably determined by Sublandlord.  Sublandlord shall have the right to order
Subtenant or any person or entity who violates the above requirements to cease
work and to remove itself, its equipment and its employees from the Sublease
Premises.

 

(d) Rules and
Regulations.  Subtenant, its agents,
employees and contractors shall abide by the rules of the Building applicable
to all contractors and others in or upon the Building or the Sublease Premises
and shall coordinate and schedule their access to the Sublease Premises
for labor and materials delivery through Sublandlord’s Contractor, or if so
directed by Sublandlord, the managing agent for the Building.

 

(e) Lease
Terms Applicable.  All work to be
performed pursuant to this Paragraph 5 shall be subject to the terms and
provisions of the Sublease and Master Lease.

 

6.                                       Miscellaneous.

 

(a) Except as
expressly set forth herein, Sublandlord has no other agreement with Subtenant
and has no other obligation to do any other work or pay any amounts with
respect to the Sublease Premises.  Any
other work in the Sublease Premises which may be permitted by Sublandlord
pursuant to the terms and conditions of the Sublease shall be done at Subtenant’s
sole cost and expense and in accordance with the terms and conditions of the
Sublease.

 

(b) This
Exhibit TI shall not be deemed applicable to any additional space added to the
original Sublease Premises at any time or from time to time, whether by any
options under the Sublease or otherwise, or to any portion of the original
Sublease Premises or any additions thereto in the event of a renewal or
extension of the initial term of the Sublease, whether by any options under the
Sublease or otherwise, unless expressly so provided in the Sublease or any
amendment or supplement thereto.

 

(c) The
failure by Subtenant to pay any monies due Sublandlord pursuant to this Exhibit
TI within the time period herein stated shall be deemed a Default under the
terms of the Sublease for which Sublandlord shall be entitled to exercise all
remedies available to Sublandlord for nonpayment of Rent.  All late payments of such monies by Subtenant
shall bear interest and shall be subject to a late charge in the same manner as
late payments of Rent under the Sublease.

 

(d) The
exculpatory provisions set forth in the Sublease and Sublease as well as all
other terms and provisions of the Sublease and Sublease, insofar as they are
applicable to this Exhibit TI, are hereby incorporated herein by this
reference.

 

(e) Subtenant
shall be solely responsible to determine at the site all dimensions of the
Sublease Premises and the Building which affect any work that may be performed
by Subtenant or any of Subtenant’s contractors hereunder.

 

(f) All of
Subtenant Improvements paid for by Sublandlord may be depreciated by
Sublandlord.

 

 

(g) Sublandlord
at Sublandlord’s option shall either assign its warranty rights with respect to
Subtenant Improvements to the Subtenant or shall reasonably pursue such claims
after receiving notice from Subtenant as to the defect and verifying the
validity of the claim.  Sublandlord shall
in no way have any liability to the Subtenant with respect to the quality of or
defects in the Subtenant Improvements.

 

(h) Sublandlord
at Sublandlord’s sole cost and expense shall have a temporary security desk in
the front lobby of the building as of the Commencement Date and shall have a
permanent security desk installed by the Sublease Premises Rent Commencement
Date.  These installations are not
included in Subtenant Improvements.

 

(i) Sublandlord
shall cause the Sublandlord’s Contractor and its subcontractors performing work
in the Sublease Premises to name Subtenant as an additional insured on their
insurance and furnish Subtenant with a copy of a certificate for such
insurance.

 

(j) In the
event Subtenant does not approve or consent to any item so requiring Subtenant’s
approval or consent in this Exhibit TI within the time provided for herein,
such approval or consent shall at Sublandlord’s option be deemed approved or
consented to.

 

 

EXHIBIT X

 

MASTER LANDLORD’S CONSENT
TO SUBLEASE

 

 

EXHIBIT Y

 

DETERMINATION OF FAIR
MARKET RENTAL VALUE

 

In connection with the
Extension Term, if Subtenant shall object to Sublandlord’s determination of the
fair market rental value of the Sublease Premises, the following procedures and
requirements shall apply:

 

1.                                       Subtenant’s
Request.  Subtenant shall send a
notice to Sublandlord within five (5) business days after receipt of
Sublandlord determination of the fair market rental value, requesting an
independent determination of the fair market rental value of the Sublease
Premises (the “Broker Determination”), which notice to be effective must (i) include
the name of a broker selected by Subtenant to act for Subtenant, which broker
shall be affiliated with a major Boston commercial real estate brokerage firm
selected by Subtenant and which broker shall have at least ten (10) years
experience dealing in properties of a nature and type generally similar to the
Building located in the Boston/Cambridge market, and (ii) explicitly state that
Sublandlord is required to notify Subtenant within ten (10) days of an
additional broker selected by Sublandlord.

 

2.                                       Sublandlord’s
Response.  Within ten (10) days after
Sublandlord’s receipt of Subtenant’s notice requesting the Broker Determination
and stating the name of the broker selected by Subtenant, Sublandlord shall
give written notice to Subtenant of Sublandlord’s selection of a broker having
at least the affiliation and experience referred to above.

 

3.                                       Selection
of Third Broker.  Within ten (10)
days thereafter the two (2) brokers so selected shall select a third such
broker also having at least the affiliation and experience referred to above.

 

4.                                       Rental
Value Determination.  Within thirty
(30) days after the selection of the third broker, the three (3) brokers so
selected, by majority opinion, shall make a determination of the annual fair
market rental value in as-is, built-out condition of the Sublease Premises for
the Extension Term.  Such annual fair
market rental value determination (x) may include provision for annual
increases in rent during said term if so determined, (y) shall take into
account the as-is condition and location in the Building of the Sublease
Premises and (z) shall take account of, and be expressed in relation to, the
provisions for paying real estate tax, operating costs, utilities and other
items of additional rent as contained in this Sublease.  The brokers shall advise Sublandlord and
Subtenant in writing by the expiration of said thirty (30) day period of the
annual fair market rental value which as so determined shall be referred to as
the “Prevailing Market Rent”.

 

5.                                       Resolution
of Broker Deadlock.  If the brokers
are unable to agree at least by majority on a determination of annual fair
market rental value, then the brokers shall send a notice to Sublandlord and
Subtenant by the end of the thirty (30) day period for making said

 

Y-1

 

determination setting
forth their individual determinations of annual fair market rental value, and
the highest such determination and the lowest such determination shall be
disregarded and the remaining determination shall be deemed to be the
determination of annual fair market rental value and shall be referred to as
the Prevailing Market Rent.

 

6.                                       Costs.  Each party shall pay the costs and expenses
of the broker selected by it and each shall pay one half (1/2) of the costs and
expenses of the third broker.

 

7.                                       Failure
to Select Broker or Failure of Broker to Serve.  If Subtenant shall have requested a Broker
Determination and Sublandlord shall not have designated a broker within the
time period provided therefor above, then Subtenant’s broker alone make the
determination of Prevailing Market Rent within thirty (30) days after the
expiration of Sublandlord’s right to designate a broker hereunder.  If Subtenant’s and Sublandlord’s brokers have
been designated but the two brokers so designated do not, within a period of
fifteen (15) days after the appointment of the second broker, agree upon and
designate the third broker willing so to act, the Subtenant, the Sublandlord or
either broker previously designated may request the Greater Boston Real Estate
Board, Inc. to designate the third broker willing so to act.  In case of the inability or refusal to serve
of any person designated as a broker, or in case any broker for any reason
ceases to be such, a broker to fill such vacancy shall be appointed by the
Subtenant, the Sublandlord, the brokers first appointed or the said Greater
Boston Real Estate Board, Inc., as the case may be, whichever made the original
appointment, or if the person who made the original appointment fails to fill
such vacancy, upon application of any broker who continues to act or by the
Sublandlord or Subtenant, such vacancy may be filled by the said Greater Boston
Real Estate Board, Inc..  Any broker
appointed by the Greater Boston Real Estate Board, Inc., pursuant to the
provisions hereof shall, for all purposes, have the same standing and powers as
though he had been originally appointed by the party originally designated to
make such appointment by the terms hereof.

 

Y-2

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