Document:

exv10w20

 

Exhibit 10.20

AMENDED AND RESTATED MARKETING AGREEMENT

     THIS AMENDED AND RESTATED MARKETING AGREEMENT (the “Agreement”) is made effective this 1st
day of January 2000 (the “Effective Date”), by and between BioPort Corporation, a Michigan
corporation having its principal office at 3500 N. Martin Luther King, Jr., Blvd., Lansing
Michigan 48906 (“BIOPORT”) and INTERGEN N.V., a corporation of the Netherlands Antilles, its
address being c/o Tarma Trust Management, Castorweg 22-24, Curacao, Netherlands Antilles
(“INTERGEN”) (BIOPORT and INTERGEN being sometimes referred to in the singular as “Party” and
collectively as “Parties”).

RECITALS

     WHEREAS, INTERGEN and Michigan Biologic Products, Inc. (“MBP”) entered into a Marketing
Agreement, effective November 28, 1997 (the “Marketing Agreement”), whereby INTERGEN agreed to
serve as the sole and exclusive marketing agent for certain products in defined territories;

     WHEREAS, INTERGEN paid $60,000 to MBP in consideration of its appointment as an
exclusive representative pursuant to the Marketing Agreement;

     WHEREAS, INTERGEN and MBP entered into a Consulting Agreement, effective November 28, 1997
(the “Consulting Agreement”), whereby INTERGEN agreed to serve as a consultant to MBP for the sale
and promotion of certain products in defined territories;

     WHEREAS, INTERGEN paid $40,000 to MBP in consideration of its appointment as an
exclusive representative pursuant to the Consulting Agreement;

     WHEREAS, BIOPORT acquired certain assets from the State of Michigan pursuant to Public Act 522
of 1996;

     WHEREAS, INTERGEN, MBP and BIOPORT agreed to assign the benefits and obligations of MBP
under the Marketing Agreement and the Consulting Agreement to BIOPORT, and INTERGEN received
notice of the assignment, and gave consent thereto;

     WHEREAS, the Parties deem it desirable and in their mutual interest to restructure their
contractual relationships, to terminate the Consulting Agreement, and to amend and restate the
Marketing Agreement in its entirety; and

     WHEREAS, the Parties have entered into a Termination and Settlement Agreement on even date
herewith.

     THEREFORE, in consideration of the mutual covenants herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby
amend and restate the Marketing Agreement in its entirety as follows:

 

 

AGREEMENT

	1.	 	For purposes of this Agreement, the terms listed below shall have the meaning ascribed to
them in this Section.
	 
	 	 	“Affiliates” when used with respect to any Person shall mean any Person which,
directly or indirectly, controls or is controlled by or is under common control with another
Person. For purposes of this definition, “control” (including the correlative meanings of the
terms “controlled by” and “under common control with”), with respect to any Person, shall
mean possession, directly or indirectly, of the power to direct or cause the direction of the
management and policies of another Person, whether through the ownership of voting securities
or by contract or otherwise.
	 
	 	 	“AVA” shall mean anthrax vaccine adsorbed.
	 
	 	 	“Availabilty Date” shall mean the date on which BIOPORT has 100,000 doses of AVA or
PBT Vaccine that have (i) been released for distribution by the Food and Drug
Administration and the Quality Assurance Department of BIOPORT and (ii) been made available
by the U.S. Department of Defense for sale.
	 
	 	 	“BIOPORT” shall mean, for purpose of this Agreement, BIOPORT and any Affiliate
or joint venture in which BIOPORT is a participant.
	 
	 	 	“Confidential Information” shall mean information relating to the buss ness,
prospective business, technical processes, finances, price lists or lists of customers and
suppliers of a Party which is provided to the other Party in connection with this Agreement
and is designated as “confidential” or “proprietary” by such Party. Notwithstanding the
above, “Confidential Information” shall not include information which (i) was known to the
Party receiving the information prior to the date of this Agreement, (ii) has been generally
known to others in the trade or business of the Parties, (iii) has been part of public
knowledge or the literature otherwise than as a result of any breach of confidence by the
Party receiving the information, (iv) has become available to the Party receiving the
information from a third party not representing either of the Parties, or (v) has been
independently acquired by the Party receiving the information as a result of work carried
out by an employee of such Party to whom no disclosure of such information shall have been
made.
	 
	 	 	“Dollars” and $” shall mean dollars in the legal tender of the
United States of America. 
	 
	 	 	“PBT Vaccine” shall mean the pentavalent
botulinum toxoids vaccine. 
	 
	 	 	“Person” shall mean and includes natural persons, corporations, limited liability
companies, limited partnerships, general partnerships, joint stock companies, joint
ventures, associations, companies, trusts, lenders, trust companies, -land trusts,
business trusts, or other organizations, irrespective of whether they are legal entities,
and governments and agencies and political subdivisions thereof
	 
	 	 	“Products” shall mean AVA, the PBT Vaccine, and such other vaccines against any
biological warfare threat agent for which BIOPORT may be duly licensed to manufacture or
sell, currently or in the future.

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	 	 	“Territory” shall mean all countries of the Middle East and North Africa, except
Israel and those countries to which export of AVA or PBT vaccine is prohibited by the U.S.
government; provided, however, if such prohibition is subsequently eliminated, then any
such country for which the prohibition has been eliminated shall be deemed to be included
within the definition of Territory.
	 
	 	 	“Total Contract Value” shall mean the gross amount promised to be paid to BIOPORT
from any Person in the Territory for the purchase of the Products.
	 
	2.	 	APPOINTMENT

	 	2.1	 	BIOPORT appoints INTERGEN to be its sole and exclusive marketing
representative with regard to the sale and promotion of the Products in the Territory.
The Parties agree that BIOPORT has the right to retain other representatives for the
sale and promotion of the Products in the Territory; provided, however, that such
retention shall not limit or relieve the obligation of BIOPORT to pay fees to INTERGEN
that may otherwise be due under this Agreement. INTERGEN shall provide services to
BIOPORT in accordance with the terms and conditions set out in this Agreement.
	 
	 	2.2	 	The Parties acknowledge and agree that INTERGEN shall have the right to, in
its sole discretion, hire such employees, engage such consultants and appoint such
agents as it deems appropriate to perform its obligations hereunder. INTERGEN
further agrees that such consultants, employees or agents shall be bound by the
restrictions of Paragraphs 3.2 and 12 herein.

	3.	 	DUTIES OF INTERGEN

	 	3.1	 	Throughout the term of this Agreement, INTERGEN shall perform a
variety of marketing and other activities as follows:

	 	3.1.1	 	Assist BIOPORT with the promotion and sale of the
Products throughout the Territory and assist with inquiries or orders
received for Products;
	 
	 	3.1.2	 	Advise BIOPORT on advantageous pricing structures for the
Products, from time to time;
	 
	 	3.1.3	 	Safeguard the property, rights, and interests of BIOPORT
and assist BIOPORT in taking all steps to defend the rights of BIOPORT;
	 
	 	3.1.4	 	Assist BioPort with promptly obtaining and maintaining all
licenses, permits and authorizations as may be required from time to time in
connection with the supply of the Products to the Territory;
	 
	 	3.1.5	 	Supply customers and potential customers with (i) such
literature as may be commercially prudent for the purpose of promoting sales
of the Products within the Territory and (ii) catalogs and such other
information that are necessary for proper presentation and solicitation of
Product sales;

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	 	3.1.6	 	Promptly forward to BIOPORT a duplicate copy of every invoice,
communication, letter or opportunity relating to the supply of the
Products (directly or indirectly) to Persons in the Territory;
	 
	 	3.1.7	 	Keep BIOPORT informed from time to time as to the market for
the Products in the Territory, the prices at which customers and potential
customers are prepared to buy the Products, and use its best efforts to give
BIOPORT notice of any change in the market price structure for the Products;
	 
	 	3.1.8	 	Take, particularly in light of the preferred customer
status to be granted to the U.S. Government in terms of pricing and the
Products supplied, all reasonable and necessary steps to ensure that sales
of Products to Persons in the Territory will be used for the internal
requirements of the Persons acquiring the Products from BIOPORT and such
Products are not acquired for purposes of resale or other transfer into the
private or foreign public sectors;
	 
	 	3.1.9	 	Take all reasonable and necessary steps to ensure that
its sales of Products to Persons inside of the Territory are under
terms and conditions that do not undermine other existing or potential sales
of Products outside the Territory; and
	 
	 	3.1.10	 	Use its best efforts to sell, at a minimum, 100,000 doses of AVA, in the
aggregate, to Persons in the Territory per year, pursuant to orders received
by BIOPORT.

	 	3.2.	 	INTERGEN shall perform the above-described in accordance with the highest
business standards and with its best efforts, and will not perform any acts which will
or may reflect adversely upon the business, integrity, or goodwill of BIOPORT.
INTERGEN shall not, and shall ensure that its officers, employees and agents do not,
make any representation or give any warranty in relation to the Products other than
those which are contained in BIOPORT’s current printed literature or packaging or
which have been specifically previously authorized in writing by BIOPORT. It is
understood by the Parties that INTERGEN shall not accept orders or make contracts on
behalf of BIOPORT other than subject to confirmation and acceptance in
writing by BIOPORT, nor shall INTERGEN incur any liability of whatever nature on
behalf of BIOPORT or pledge BIOPORT’s credit.

	4.	 	DUTIES OF BIOPORT
	 
	 	 	BIOPORT shall:

	 	4.1	 	Use its best efforts to promptly obtain and maintain all licenses, permits and
authorizations as may be required from time to time in connection with the supply of
the Products to the Territory;
	 
	 	4.2	 	Supply INTERGEN, at the expense of BIOPORT, with (i) such literature as
INTERGEN shall reasonably request from time to time for the purpose of promoting sales
of the Products within the Territory and (ii) catalogs and such other information as,
in BIOPORT’s opinion, are necessary for proper presentation and solicitation of
Product sales;

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	 	4.3	 	Promptly forward to INTERGEN a duplicate copy of every invoice,
communication, letter or opportunity relating to the supply of the Products
(directly or indirectly) to Persons in the Territory;
	 
	 	4.4	 	Keep INTERGEN informed as to the Products it has available for sale in the
Territory, the prices at which it is prepared to sell the Products, and use its best
efforts to give INTERGEN at least three (3) months’ advance notice of any proposed
change in its price structure;
	 
	 	4.5	 	Permit INTERGEN by nameplate at its office and/or in its letter heading to
indicate that INTERGEN is the marketing representative of BIOPORT for the Products in
the Territory subject to such indication having been previously approved in writing by
BIOPORT (such approval not to be unreasonably withheld or delayed) and provided that
such indication shall cease on the expiration or earlier termination of the Agreement
(for any cause);
	 
	 	4.6	 	Allow INTERGEN to have access to the relevant books and accounts and records
of BIOPORT at all reasonable times so as to ensure that all invoices relating to the
supply of the Products to the Territory have been properly recorded;
	 
	 	4.7	 	Take, particularly in light of the preferred customer status to be granted to
the U. S. Government in terms of pricing and the Products supplied, all reasonable and
necessary steps to ensure that sales of Products to Persons in the Territory will be
used for the internal requirements of the Persons acquiring the Products from BIOPORT
and such Products are not acquired for purposes of resale or other transfer into the
private or foreign public sectors;
	 
	 	4.8	 	Take all reasonable and necessary steps to ensure that its sales of Products
to Persons outside of the Territory are under terms and conditions that do not
undermine other existing or potential sales of Products within the Territory.
	 
	 	4.9	 	Use its best efforts to supply, at a minimum, 100,000 doses of Anthrax, in the
aggregate, to Persons in the Territory per year, pursuant to orders received by
BIOPORT; and
	 
	 	4.10	 	Advise INTERGEN, in writing, of all established policies and procedures of
BIOPORT by which INTERGEN shall be expected to abide and shall promptly notify
INTERGEN, in writing, of any changes to such policies and procedures.

	5.	 	INDEMNIFICATION
	 
	 	 	BIOPORT shall unconditionally and irrevocably indemnify and hold harmless INTERGEN, its
officers, employees and representatives from all losses (except indirect, incidental or
consequential losses), liabilities, claims, demands, expenses, and costs which INTERGEN,
its officers, and/or employees may suffer or incur as a direct result of any
claim or demand by any third party relating to the Products or any of them-, provided,
however, that the indemnity contained in this Subparagraph shall not apply to the extent
that any losses, liabilities, claims, demands, expenses, and costs should arise from the
gross negligence or willful misconduct of

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	 	 	INTERGEN its officers, employees or representatives, and provided, further, that INTERGEN
shall:

	 	5.1	 	At the expense of BIOPORT, render such reasonable assistance to
BIOPORT as BIOPORT may require in respect of such claim or demand;
	 
	 	5.2	 	Not make any admissions in respect of such claim or demand or otherwise
prejudice the position of BIOPORT in respect of such claim or demand; and
	 
	 	5.3	 	The provisions of this Section shall survive the expiration or earlier
termination of this Agreement;

	6.	 	COMPENSATION

	 	6.1	 	In compensation for the marketing services provided by INTERGEN and any and all
of its subagents under this Agreement, BIOPORT shall pay to INTERGEN a fee for sales of
the Products supplied by or on behalf of BIOPORT to any Person in the Territory,
regardless of whether the sale was instigated by INTERGEN at forty percent (40%) of
Total Contract Value.
	 
	 	6.2	 	The fee herein in respect of any Products shall be paid to INTERGEN in Dollars.
Upon the payment of any fee, INTERGEN shall deliver to BIOPORT an acknowledgement of
receipt therefor.
	 
	 	6.3	 	The fee due hereunder shall be paid to INTERGEN within seven (7) banking days
(excluding Saturdays and Sundays and days in which banks in Michigan are authorized
or obligated by law to be closed) after payment for the Products has been received by
or on behalf of BIOPORT. In the case of BIOPORT’s receipt of any partial payment
hereunder, BIOPORT’s shall pay INTERGEN the fee on a pro rata basis.
	 
	 	6.4	 	As regards orders for the supply of the Products to Persons within the
Territory which are received by BIOPORT during the term of this Agreement but in
respect of which payment has not been made to BIOPORT at the expiration or earlier
termination of this Agreement, BIOPORT shall pay to INTERGEN (or as INTERGEN shall
reasonably direct in writing) fees in accordance herewith in respect of each such order
as and when payment has been received by BIOPORT for the Products that are the subject
of such order. For any sale of the Products for which contracts are concluded for the
benefit of BIOPORT with Persons in the Territory resulting from standing orders,
follow-on orders, extensions, or renewals of orders generated by INTERGEN during the
term of this Agreement, such sales shall be deemed sales under this Agreement for which
INTERGEN shall be paid fees in accordance with the provisions of this Agreement.
	 
	 	6.5	 	In the event that BIOPORT fails to make any payment due under this Agreement to
INTERGEN by the due date for such payment, interest shall accrue and be payable on the
unpaid amount at the annual rate of five percent (5%) above the prime rate published by
The Wall Street Journal  (New York edition) as of the date on which
INTERGEN should have received such payment until payment, in full, is received by
INTERGEN.

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	 	6.6	 	INTERGEN shall be responsible for all out-of-pocket expenses incurred by it in
the performance of its duties hereunder.
	 
	 	6.7	 	The Parties agree that INTERGEN may present additional sales opportunities to
BIOPORT outside of the Territory on a non-exclusive basis. The Parties, in such an
instance, shall negotiate in good faith the compensation due INTERGEN, if any.

	7.	 	DURATION AND TERMINATION

	 	7.1	 	The term of this Agreement shall commence on the Effective Date and unless
previously terminated in accordance with its provisions, this Agreement shall
terminate at midnight on the last day of the third (3rd) year from the Availability
Date.
	 
	 	7.2	 	This Agreement shall be automatically extended for an additional five (5) year
term upon the same terms and conditions if BIOPORT achieves $5,000,000 of sales in the
Territory during the initial three (3) year term of the Agreement. As used in this
Section, “sales” means the Total Contract Value of completed orders, orders received
but not completed and sales contracts entered into but not fully performed as of the
expiration of the three (3) year initial term of this Agreement.
	 
	 	7.3	 	Either Party may terminate this Agreement at any time by notice in writing to
the other Party if the other Party commits a material breach of any of the material
provisions of this Agreement and falls to remedy the breach within a reasonable time
and in any event not less than sixty (60) days from the date of the notice requiring
it to do so. If a non-financial breach cannot reasonably be cured, the Parties shall
negotiate in good faith for an additional sixty (60) days to attempt to agree upon an
alternative performance by the breaching Party or the payment of damages to the
non-breaching Party that will constitute a cure and will be deemed to terminate the
breach, it being acknowledged that if no such agreement is reached within the
additional sixty (60) days. The breach at issue shall be deemed a default and the
non-breaching Party may thereafter terminate this Agreement by written notice to the
other Party with immediate effect.
	 
	 	7.4	 	In the event that BIOPORT shall not have at least 100,000 doses
reasonably available for sale by INTERGEN, the Parties shall negotiate an extension of
the term of this Agreement as provided in paragraphs 7.1 and 7.2. The Parties shall
not unreasonably withhold consent to such extension.
	 
	 	7.5	 	The termination of this Agreement shall not affect any accrued
rights or liabilities of either Party nor shall it affect the coming into force or
continuance in force of, any provision of this Agreement which is expressly or
impliedly intended to come into or remain in force on or after such termination.

	8.	 	DISPUTE RESOLUTION AND GOVERNING LAW
	 
	 	 	All disputes arising between the Parties shall be finally settled by binding arbitration
before a single arbitrator in Lansing, Michigan, in accordance with the Commercial
Arbitration Rules of the American Arbitration Association. Any award rendered by the
arbitrator shall be final and may be enforced by any court of competent jurisdiction. This
Agreement shall be governed by

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	 	 	and construed in accordance with laws of the State of Michigan, excluding any conflicts
of law rules that would refer the choice of law to another jurisdiction.

	9.	 	NON-SOLICITATION
	 
	 	 	INTERGEN agrees that during the term of this Agreement, and for a period of twelve (12)
consecutive months after termination of such Agreement INTERGEN will not i) directly or
indirectly induce or attempt to induce or otherwise counsel, advise, solicit or encourage
any employee to leave the employ of BIOPORT or accept employment with any other person or
entity, ii) directly or indirectly induce or attempt to induce or otherwise counsel,
advise, solicit or encourage any person who at the time of such inducement, counseling,
advice, solicitation or encouragement had left the employ of BIOPORT within the previous
six (6) months to accept employment with any person or entity besides BIOPORT; and iii)
solicit, interfere with, or endeavor to cause any customer, client, or business partner of
BIOPORT to cease or reduce its relationship with BIOPORT or induce or attempt to induce any
such customer, client, or business partner to breach any agreement that such customer,
client, or business partner may have with BIOPORT.
	 
	10.	 	BIOPORT REPRESENTATIVE
	 
	 	 	INTERGEN shall take direction and guidance in performing its services hereunder from
Robert Bidlingmeyer, Vice President, Marketing of BIOPORT, or such other persons as may
be designated from time to time in writing.
	 
	11.	 	INDEPENDENT CONTRACTORS
	 
	 	 	With respect to the subject matter of this Agreement, the Parties are and remain
independent contractors. This Agreement shall not be deemed to create a joint venture,
partnership, association, or agency between the Parties. INTERGEN is not authorized to
incur or create any obligation express or implied on behalf of BIOPORT or to bind BIOPORT
in any manner whatsoever. The Parties understand and agree that this Agreement is not a
contract of employment, or an offer to enter into a contract of employment. The Parties
further agree that INTERGEN shall have sole control of the manner and means of performing
the services. BIOPORT shall not have the right to require that INTERGEN or its employees do
anything that would jeopardize the relationship of independent contractor between the
Parties. INTERGEN shall have the right to appoint and shall be solely responsible for its
own workforce, who shall be its own employees.
	 
	12.	 	COMPLIANCE WITH FOREIGN CORRUPT PRACTICES ACT
	 
	 	 	INTERGEN, on its own behalf and on behalf of its owners, managers, affiliates, agents and
related entities, warrants, represents, and agrees that (i) neither it nor its owners,
managers, affiliates, agents or related entities are officials or candidates of any
government, governmental agency or instrumentality, or political party, (ii) it is aware of
the requirements of applicable law including the U.S. Foreign Corrupt Practices Act
(“FCPA”) and the legal prohibitions on direct or indirect improper payments or gifts to
foreign officials or candidates, (iii) it will comply with all applicable laws including
the FCPA, and use no part of the above commissions to make any improper or illegal
payments, (iv) it will, upon the Company’s request, annually certify such

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	 	 	compliance to the Company, and notify the Company of any relevant change in the status of
its owners, managers, affiliates, agents or related entities, (v) it will indemnify the
Company and its officers, directors, employees, agents and affiliates for any violation of
such laws, (vi) in the event of any such violation, this Agreement will immediately
terminate without the need for notice, and (vii) in such event INTERGEN will forfeit any
right to any accrued and unpaid commissions and compensation under this Agreement.
	 
	13.	 	CONFIDENTIALITY

	 	13.1.	 	During the term of this Agreement and for a period of two (2) years following
its termination (for whatever cause) or expiration, each Party will keep confidential
the terms and conditions of this Agreement (but may acknowledge the existence of the
relationship between the Parties) and all Confidential Information received from the
other Party and will not use the same but, to the extent necessary to implement the
provisions of this Agreement, each Party may disclose the Confidential Information to
such of its customers, officers, or employees as may be reasonably necessary or
desirable provided that before any such disclosures each Party shall make such persons
aware of its obligations of confidentiality under this Agreement and shall at all
times use its best efforts to procure compliance by such persons therewith.
	 
	 	13.2.	 	Notwithstanding the provisions of Section 11.1, the Parties agree that the
terms and conditions of this Agreement may be disclosed to the U.S. Government,
including any division of the military, in connection with the negotiation or sale
of any of the Products to such entity. In such cases, the Parties shall agree as to
the best means of disclosure in order to assure the continued protection of
Confidential Information.
	 
	 	13.3.	 	Either Party may demand the return of the Confidential Information at any
time by notice in writing given to the other Party. On the giving of such notice,
the Party served with such notice shall deliver or procure the delivery to the other
Party or to its order of each and every original and copy document and thing
reproducing, containing, or embodying any Confidential Information.

	14.	 	FORCE MAJEURE

	 	14.1.	 	The obligations of a Party under this Agreement shall be suspended during the
period and to the extent that such Party is prevented or hindered from complying
therewith by any cause beyond its reasonable control including (insofar as beyond such
control but without prejudice to the generality of the foregoing expression) strikes,
lock-outs, labor disputes, act of God, war, riot, civil commotion, malicious damage,
compliance with any law or governmental order, rule, regulation or direction,
accident, breakdown of plant or machinery, fire, flood or storm.
	 
	 	14.2.	 	In the event of either Party being so hindered or prevented such Party
shall give notice of suspension as soon as reasonably practicable to the other Party
stating the date and extent of such suspension and the cause thereof and the omission
to give such notice shall forfeit the rights of such Party to claim such suspension.
Any Party whose obligations have been suspended as aforesaid shall resume the
performance of such obligations as soon as reasonably practicable after the removal
of the cause and shall so notify the other Party. In the event that such cause
continues for more than six (6) months, either Party

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	 	 	 	may terminate this Agreement upon giving to the other Party not less than
sixty (60) days’ notice.

	15.	 	ENTIRE AGREEMENT
	 
	 	 	This Agreement constitutes the entire understanding between the Parties with respect
to the subject matter of this Agreement and supersedes all prior agreements,
negotiations and discussions between the Parties relating thereto, with the
exception of the Termination and Settlement Agreement entered into of even date
herewith.
	 
	16.	 	AMENDMENTS
	 
	 	 	No amendment or variation of this Agreement shall be effective unless in
writing and signed by a duly authorized representative of each of the Parties.
	 
	17.	 	HEADINGS
	 
	 	 	Section headings shall not form part of this Agreement for the purposes of its
interpretation.
	 
	18.	 	ASSIGNMENT
	 
	 	 	Neither Party shall without the prior written consent of the other Party, which shall
not be unreasonably withheld or delayed, assign, transfer, sub-contract, charge,
delegate or deal in any other manner with this Agreement or its rights or duties
hereunder or part thereof, or purport to do any of the same, except, however, it is
agreed that INTERGEN may assign, in whole or in part, its rights and obligations under
this Agreement to an Affiliate without obtaining the consent of the Company. In the
event that INTERGEN assigns any of its rights and interests to an Affiliate in
accordance with this provision, it shall provide the Company with notice of such
assignment within a reasonable period of time of such assignment
	 
	19.	 	WAIVER
	 
	 	 	The failure of a Party to exercise or enforce any rights under this Agreement shall not be
deemed to be a waiver thereof nor operate so as to bar the exercise or enforcement thereof
at any time or times thereafter.

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	20.	 	COUNTERPARTS
	 
	 	 	This Agreement may be signed in two counterparts, both of which taken together shall
constitute one and the same Agreement. Either Party may enter into the Agreement by
signing either such counterpart.
	 
	21.	 	NOTICES
	 
	 	 	Any notice given under this Agreement shall be in writing and shall be given by
delivering the same by hand at, or by sending the same by prepaid first class post
(airmail if to an address outside the country of posting) or confirmed facsimile to the
address of the relevant Party set out in this Agreement or such other address as either
Party may notify to the other from time to time. Notices delivered in accordance with
this provision shall be deemed delivered on the day delivered by hand or confirmed
facsimile and three (3) days after delivery by prepaid first-class post.
	 
	22.	 	REMEDIES NOT EXCLUSIVE
	 
	 	 	No remedy conferred by any of the provisions of this Agreement is intended to be
exclusive of any other remedy and each and every remedy shall be cumulative and shall
be in addition to every other remedy given under this Agreement or now or hereafter
existing in law or in equity or by statute or otherwise.
	 
	23.	 	SEVERABILITY
	 
	 	 	If any court of competent jurisdiction finds any provision of this Agreement to be
unenforceable or invalid, then such provision shall be ineffective to the extent of the
court’s finding without affecting the enforceability or validity of the remaining
provisions of this Agreement.

          WHEREFORE, the Parties have executed and delivered this Agreement in two identical
copies, each of which is deemed to be an original, effective as of the date first written
above.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	BIOPORT CORPORATION	 	 	 	INTERGEN N.V.	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	By
	 	/s/ Robert G. Kramer
	 	 	 	By
	 	/s/ Ibrahim El Hibri	 	 
	 

	 	 	 	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	Ibrahim El Hibri	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Its	 	Chief Financial Officer	 	 	 	Its	 	Chairman	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 

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SUPPLEMENT No. 1 TO MARKETING AGREEMENT

This Supplement No. 1 to Marketing Agreement (“Supplement”) is made effective as of the 15th
day of September, 2006 (“Effective Date”), by and between Intergen N.V., a Netherlands
Antilles corporation, having a place of business at c/o Tarma Trust Management, Castorweg 22-24,
Curacao, Netherlands Antilles (“Intergen”) and BioPort Corporation, a Michigan corporation
having a place of business at 3500 North Martin Luther King Jr. Boulevard, Lansing, Michigan 48906
(“BioPort” and together with Intergen the “Parties” and each a “Party”).

RECITALS

WHEREAS, Intergen and BioPort Corporation (“Bioport”) entered into an Amended and Restated
Marketing Agreement, effective January 1, 2000 (the “Marketing Agreement”), whereby
Intergen agreed to serve as the sole and exclusive marketing representative with regard to the sale
and promotion in all the countries of the Middle East and North Africa, including Saudi Arabia, of
AVA and such other vaccines against any biological warfare threat agent for which Bioport may be
duly licensed to manufacture or sell, currently or in the future; and

WHEREAS, Section 7.1 of the Marketing Agreement provides that the term of the Marketing Agreement
would expire at “midnight on the last day of the third (3rd) year from the Availability
Date”; and

WHEREAS, the Availability Date was defined as “the date on which BioPort had 100,000 doses of AVA
or PBT Vaccine that have (i) been released for distribution by the Food and Drug Administration and
the Quality Assurance Department of BioPort and (ii) been made available by the U.S. Department
of Defense for sale”; and

WHEREAS, the Parties wish to enter into this Supplement to agree on the Availability Date and
termination date for purposes of the Marketing Agreement; and

WHEREAS, all capitalized terms used herein but not defined herein shall have the meanings assigned
to them in the Marketing Agreement.

NOW THEREFORE, in consideration of the mutual covenants contained herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending
to be legally bound, the Parties agree as follows:

1. The Parties agree that the Availability Date occurred on November 5, 2004 and that at least
100,000 doses of AVA have remained reasonably available for sale by Intergen in the Territory since
that date. BioPort shall promptly notify Intergen in writing in the unforeseen circumstance that
less than 100,000 doses of AVA are reasonably available for sale by Intergen in the Territory.

2. For purposes of Section 7.1 of the Marketing Agreement, the Parties agree that the termination
date of the Marketing Agreement shall be midnight on November 5, 2007, subject to

1

 

the extension, or early termination pursuant to the provisions of Sections 7 and 14 of the
Marketing Agreement.

3. Except as expressly provided herein, this Supplement shall not be interepreted as amending or
otherwise modifying the terms of the Marketing Agreement.

In witness hereof, the Parties have caused this Supplement to be executed in duplicate by their
duly authorized representatives.

	 	 	 	 	 	 	 	 	 	 	 
	Intergen

	 	N.V.
	 	 
	 	BioPort
	 	Corporation
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Yasmine Gibellini
	 	 	 	By:
	 	/s/ Robert Kramer	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Name:

	 	Yasmine Gibellini
	 	 	 	Name:
	 	Robert Kramer	 	 
	Title:

	 	Chairwoman
	 	 	 	Title:
	 	President	 	 
	Date:

	 	September 15th, 2006
	 	 	 	Date:
	 	September 21, 2006	 	 

2exv10w24

 

Exhibit 10.24

LEASE AGREEMENT

BRANDYWINE RESEARCH LLC

Landlord

and

EMERGENT BIOSOLUTIONS INC.

Tenant

2273 Research Boulevard

Rockville, Maryland 20850

Dated: June 27, 2006

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE 1 — SUMMARY OF DEFINED TERMS

	 	 	1	 
	ARTICLE 2 — PREMISES

	 	 	3	 
	ARTICLE 3 — TERM

	 	 	3	 
	ARTICLE 4 — CONSTRUCTION BY LANDLORD

	 	 	4	 
	ARTICLE 5 — FIXED RENT; SECURITY DEPOSIT

	 	 	5	 
	ARTICLE 6 — ADDITIONAL RENT

	 	 	7	 
	ARTICLE 7 — UTILITIES

	 	 	12	 
	ARTICLE 8 — SIGNS; USE OF PREMISES AND COMMON AREAS

	 	 	13	 
	ARTICLE 9 — ENVIRONMENTAL MATTERS

	 	 	14	 
	ARTICLE 10 — ALTERATIONS

	 	 	16	 
	ARTICLE 11 — CONSTRUCTION LIENS

	 	 	17	 
	ARTICLE 12 — ASSIGNMENT AND SUBLETTING

	 	 	18	 
	ARTICLE 13 — LANDLORD’S RIGHT OF ENTRY

	 	 	21	 
	ARTICLE 14 — REPAIRS AND MAINTENANCE

	 	 	21	 
	ARTICLE 15 — INSURANCE

	 	 	22	 
	ARTICLE 16 — INDEMNIFICATION

	 	 	24	 
	ARTICLE 17 — QUIET ENJOYMENT

	 	 	24	 
	ARTICLE 18 — CASUALTY

	 	 	25	 
	ARTICLE 19 — SUBORDINATION; MORTGAGEE RIGHTS

	 	 	26	 
	ARTICLE 20 — CONDEMNATION

	 	 	27	 
	ARTICLE 21 — ESTOPPEL

	 	 	28	 
	ARTICLE 22 — DEFAULT

	 	 	28	 
	ARTICLE 23 — LANDLORD’S LIEN

	 	 	32	 
	ARTICLE 24 — SURRENDER

	 	 	33	 
	ARTICLE 25 — RULES AND REGULATIONS

	 	 	33	 
	ARTICLE 26 — GOVERNMENTAL REGULATIONS

	 	 	33	 
	ARTICLE 27 — NOTICES

	 	 	34	 
	ARTICLE 28 — BROKER

	 	 	34	 
	ARTICLE 29 — CHANGE OF BUILDING/PROJECT NAME

	 	 	34	 

-i-

 

 

	 	 	 	 	 
	ARTICLE 30 — LANDLORD’S LIABILITY

	 	 	35	 
	ARTICLE 31 — AUTHORITY

	 	 	35	 
	ARTICLE 32 — NO OFFER

	 	 	35	 
	ARTICLE 33 — RENEWAL

	 	 	35	 
	ARTICLE 34 — RIGHT OF NOTIFICATION

	 	 	36	 
	ARTICLE 35 — TERMINATION

	 	 	37	 
	ARTICLE 36 — PARKING

	 	 	37	 
	ARTICLE 37 — FINANCIAL INFORMATION

	 	 	37	 
	ARTICLE 38 — ROOF RIGHTS

	 	 	38	 
	ARTICLE 39 — MISCELLANEOUS PROVISIONS

	 	 	38	 
	ARTICLE 40 — WAIVER OF JURY TRIAL

	 	 	40	 
	ARTICLE 41 — CONSENT TO JURISDICTION

	 	 	40	 
	ARTICLE 42 — OFAC

	 	 	41	 

	 	 	 	 	 
	EXHIBITS	 	 	 	 
	EXHIBIT A

	 	-
	 	SPACE PLAN OF PREMISES
	EXHIBIT B

	 	-
	 	CONFIRMATION OF LEASE TERM
	EXHIBIT C

	 	-
	 	RULES AND REGULATIONS
	EXHIBIT D

	 	-
	 	CLEANING SPECIFICATIONS
	EXHIBIT E

	 	-
	 	WORK LETTER
	EXHIBIT F

	 	-
	 	SNDA
	EXHIBIT G

	 	-
	 	LETTER OF CREDIT
	EXHIBIT H

	 	-
	 	SIGNAGE

-ii-

 

 

LEASE AGREEMENT

     THIS LEASE AGREEMENT (this “Lease”) is entered into as of June 27, 2006, between BRANDYWINE
RESEARCH LLC, a Delaware limited liability company (“Landlord”), and EMERGENT BIOSOLUTIONS INC., a
Delaware corporation, having a place of business at 300 Professional Drive, Suite 250,
Gaithersburg, Maryland 20879 (“Tenant”).

WITNESSETH

     In consideration of the mutual covenants herein set forth, and intending to be legally bound,
the parties hereto covenant and agree as follows:

     1. Summary of Defined Terms.

     The following defined terms, as used in this Lease, shall have the meanings and shall be
construed as set forth below:

          (a) “Building”: The Building located at 2273 Research Boulevard, Rockville, Maryland
20850.

          (b) “Project”: The Building, the land on which the Building is located (“Land”), and
any common areas, parking facilities and all other improvements located thereon.

          (c) “Premises”: Suite 400, consisting of 22,872 square feet of Rentable Area
comprising a portion of the fourth (4th) floor of the Building shown on the space plan
attached hereto as Exhibit A.

          (d) “Term”: From the Commencement Date for a period of 120 months, ending on the last
calendar day of the 120th month following the Commencement Date. Reference is hereby made to
Tenant’s renewal right in Section 33, and termination right in Section 35.

          (e) “Fixed Rent”:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	LEASE YEAR	 	PER R.S.F.	 	 	MONTHLY INSTALLMENTS	 	 	ANNUAL FIXED RENT	 
	1
	 	$	26.25	 	 	$	50,032.50	 	 	$	600,390.00	 
	2
	 	$	26.97	 	 	$	51,404.82	 	 	$	616,857.84	 
	3
	 	$	27.71	 	 	$	52,815.26	 	 	$	633,783.12	 
	4
	 	$	28.48	 	 	$	54,282.88	 	 	$	651,394.56	 
	5
	 	$	29.26	 	 	$	55,769.56	 	 	$	669,234.72	 
	6
	 	$	30.06	 	 	$	57,294.36	 	 	$	687,532.32	 
	7
	 	$	30.89	 	 	$	58,876.34	 	 	$	706,516.08	 
	8
	 	$	31.74	 	 	$	60,496.44	 	 	$	725,957.28	 
	9
	 	$	32.61	 	 	$	62,154.66	 	 	$	745,855.92	 
	10
	 	$	33.51	 	 	$	63,870.06	 	 	$	766,440.72	 

-1-

 

	 	 	 
	          (f) “Rental Payment Address”:
	 	Brandywine Realty Trust

P.O. Box 75592

Baltimore, MD 21275-5592

          (g) “Security Deposit”: $49,000.

          (h) “Estimated Occupancy Date”: October 1, 2006.

          (i) “Tenant’s Allocated Share”: 15.32%;

          (j) “Base Year”: 2007.

	 	 	 	 	 	 	 
	          (k) “Rentable Area”:

	 	Premises
	 	-
	 	 22,872 square feet
	 

	 	Building
	 	-
	 	149,283 square feet
	 

	 	Office Park
	 	-
	 	432,002 square feet

          (l) “Permitted Uses”: Tenant’s use of the Premises shall be limited to general office
use and storage ancillary thereto.

          (m) “Broker”: A Landlord affiliate, together with Studley, Inc.

          (n) “Notice Address/Contact”

	 	 	 
	          Tenant:

	 	Prior to the Commencement Date:
	 	 	Emergent BioSolutions Inc.

300 Professional Drive, Suite 250

Gaithersburg, Maryland 20879

Attn: Vice President Legal,

Corporate and Transactions

Fax No: 301-944-0173

	 	 	After the Commencement Date:

	 	 	Emergent BioSolutions Inc.

2273 Research Boulevard, Suite 400

Rockville, Maryland 20850

Attn: Vice President Legal,

Corporate and Transactions

Fax. No.                                        

          [to be supplied when available]

-2-

 

	 	 	 
	          Landlord:

	 	Brandywine Research, LLC

3141 Fairview Park Drive, Suite 200

Falls Church, Virginia 22042

Attention: Asset Manager

	          a copy to:

	 	Brandywine Realty Trust

401 Plymouth Road, Suite 500

Plymouth Meeting, PA 19462

Attn: Brad A. Molotsky, General Counsel

Phone No. 610-325-5600

Fax No.: 610-325-5622

E-Mail: brad.molotsky@bdnreit.com

          (o) “Tenant’s North American Industry Classification Number”: 2834

          (p) “Additional Rent”: All sums of money or charges required to be paid by Tenant
under this Lease other than Fixed Rent, whether or not such sums or charges are designated as
“Additional Rent.”

          (q) “Rent”: All Fixed Rent and Additional Rent payable by Tenant to Landlord under
this Lease.

          (r) “Office Park”: The complex of office buildings presently known as Research Office
Center, Rockville, Maryland

     2. Premises. Landlord does hereby lease, demise and let unto Tenant and Tenant does
hereby hire and lease from Landlord the Premises for the Term, upon the provisions, conditions and
limitations set forth herein.

     3. Term.

          (a) The Term of this Lease shall commence (the “Commencement Date”) on the date which is the
earlier of (i) when Tenant, with Landlord’s prior consent, assumes possession of the Premises and
commences to use the Premises for its Permitted Uses, or (ii) upon Substantial Completion of
Landlord’s Work (as both such terms are defined in Exhibit E — Work Letter). The
Commencement Date shall be confirmed by Landlord and Tenant by the execution of a Confirmation of
Lease Term in the form attached hereto as Exhibit B. If Tenant fails to object to the
Confirmation of Lease Term within ten (10) business days of its delivery, Landlord’s determination
of such dates shall be deemed accepted.

          (b) Upon notification by Landlord, Landlord and Tenant shall schedule a pre-occupancy
inspection of the Premises at which time a list of Punchlist Items, if any, shall be completed.
Landlord shall use commercially reasonable efforts to complete the Punchlist Items within thirty
(30) days after such inspection.

-3-

 

          (c) In the event that the Premises are not ready for Tenant’s occupancy at the time
herein fixed for the beginning of the Term of this Lease, because of any alterations or
construction now or hereafter being carried on either to the Premises or the Building (unless such
alterations are being done by Tenant or Tenant’s contractor, in which case there shall be no
suspension or proration of rental or other sums), or because of any restrictions, limitations or
delays caused by government regulations or governmental agencies, this Lease and the Term hereof
shall not be affected thereby, nor shall Tenant be entitled to make any claim for or receive any
damages whatsoever from Landlord; provided, however, no rent or other sums herein provided to be
paid by Tenant shall become due until the Premises are substantially completed and deemed by
Landlord to be ready for Tenant’s occupancy, and until that time, the rent and other sums due
hereunder shall be suspended.

          Any provision of this Section to the contrary notwithstanding, if Landlord has not
Substantially Completed Landlord’s Work on or before February 15, 2007 (the “Outside Date”), Tenant
shall have the right to elect, as its sole remedy, to terminate this Lease by giving Landlord
written notice of such exercise at any time after the Outside Date, which notice shall be effective
on the fifteenth (15th) day after Landlord’s receipt of Tenant’s notice (the “Effective
Termination Date”). If Tenant elects to terminate this Lease as aforesaid and Landlord
Substantially Completes Landlord’s Work before the Effective Termination Date, Tenant’s election to
terminate this Lease shall be null and void and this Lease shall continue in full force and effect.
The Outside Date shall be extended by one (1) day for each day, if any, that Landlord is delayed
in Substantially Completing Landlord’s Work due to any Tenant Delay and/or force majeure event. If
Tenant properly exercises its right to terminate this Lease and Landlord has not Substantially
Completed Landlord’s Work on or before the Effective Termination Date, this Lease shall thereafter
be null and void, except as otherwise expressly provided in this Lease to the contrary.

     4. Construction by Landlord. Subject to Landlord’s maintenance and repair
obligations set forth in this Lease and except as otherwise expressly set forth in Exhibit
E to this Lease to the contrary, Tenant accepts the Premises in “AS IS” condition as of the
date of delivery of possession to Tenant, without any warranty or representation, express or
implied, by or on behalf of Landlord as to the condition or usability thereof, and without any
obligation on the part of Landlord to make, have made, pay for, or contribute to the payment for
any demolition, alteration, addition, repair, replacement or improvement in or to the Premises,
including, without limitation, to perform any Landlord work to make the Premises ready for
occupancy or to provide any free rent allowance, painting allowance, rent holiday, free rent,
build-out allowance, contribution or other inducement therefor. In addition, Landlord shall have
no obligation to provide Tenant with any leasehold improvement allowance or other allowance except
as expressly set forth in Exhibit E to this Lease. The foregoing notwithstanding, Tenant
shall not be deemed to have waived latent defects in the Premises which defects Tenant reports to
Landlord in writing within six (6) months after the Commencement Date. Notwithstanding the
foregoing, Tenant shall be entitled to occupy the Premises during the thirty (30) days prior to the
Commencement Date for the limited purposes of installing Tenant’s office equipment and fixtures and
communication lines. Such occupancy by Tenant shall be subject to all of the terms and conditions
of this Lease, except for the obligation to pay Fixed Rent or regular installments of Additional
Rent.

-4-

 

     5. Fixed Rent; Security Deposit.

          (a) (i) Tenant shall pay to Landlord without notice or demand and except as otherwise
expressly provided herein, without set-off, the annual Fixed Rent in equal monthly installments as
set forth in Article 1, in advance on the first day of each calendar month during the Term by (i)
check sent to Landlord, to the Rental Payment address set forth in Section 1(f), or (ii)
wire transfer of immediately available funds to the account at First Union National Bank, Salem NJ
account no. 2030000359075 ABA #031201467; such transfer to be confirmed by Landlord’s accounting
department upon written request by Tenant. All payments must include the following information:
Building No. ___and Lease No. ___. The Building number and the Lease number will be provided
to Tenant in the Confirmation of Lease Term. Notwithstanding the immediately preceding sentence,
the first (1st) full month’s installment of Fixed Rent and the Security Deposit shall be
paid upon the execution of this Lease by Tenant.

               (ii) Any provision of this Lease to the contrary notwithstanding, provided that no Event of
Default has occurred, Tenant shall be entitled to an abatement of, and Landlord hereby waives
Tenant’s obligation to pay, the first four (4) monthly installments of Fixed Rent payable after the
Commencement Date. Nothing herein contained shall be deemed to diminish or relieve Tenant of its
obligation to pay in accordance with the terms of this Lease all other sums owed by Tenant to
Landlord under this Lease. Commencing with the fifth (5th) full month of the Term,
regular installments of Fixed Rent shall then and thereafter be payable in full by Tenant in
accordance with the terms of this Lease. The abatement under this Section 5(a)(ii) shall commence
immediately after any abatement Tenant is entitled to under Section 5(a)(iii).

               (iii) Any provision of this Lease to the contrary notwithstanding, if Landlord has not
Substantially Completed Landlord’s Work on or before December 31, 2006 (such date shall be extended
on a day-for-day basis for each day, if any, that Landlord is delayed in Substantially Completing
Landlord’s Work due to any Tenant Delay and/or force majeure event), Tenant shall be entitled to a
day-for-day abatement of Fixed Rent for each day after such date until Landlord has Substantially
Completed Landlord’s Work.

          (b) If any Fixed Rent or Additional Rent, charge, fee or other amount due from Tenant under
the terms of this Lease are not paid to Landlord when due, Tenant shall also pay as Additional Rent
a service and handling charge equal to five percent (5%) of the total payment then due. The late
charge shall accrue and be payable on the day immediately following the date when the payment was
due, irrespective of any grace period granted hereunder. This provision shall not prevent Landlord
from exercising any other remedy herein provided or otherwise available at law or in equity in the
event of any default by Tenant. Notwithstanding the foregoing, Tenant shall not be liable for such
late fee and interest for the first such failure in any twelve (12)-month period.

-5-

 

          (c) Tenant shall deliver to Landlord a letter of credit in the form attached as Exhibit G
for the Security Deposit, as security for the prompt, full and faithful performance by Tenant of
each and every provision of this Lease and of all obligations of Tenant hereunder. With respect to
any portion of the Security Deposit held as cash, no interest shall be paid to Tenant on the
Security Deposit, and Landlord may commingle the Security Deposit with other security deposits held
by Landlord. If Tenant fails to perform any of its obligations hereunder, Landlord may use, apply
or retain the whole or any part of the Security Deposit for the payment of (i) any rent or other
sums of money which Tenant may not have paid when due, (ii) any sum expended by Landlord on
Tenant’s behalf in accordance with the provisions of this Lease, and/or (iii) any sum which
Landlord may expend or be required to expend by reason of Tenant’s default, including, without
limitation, any damage or deficiency in or from the reletting of the Premises as provided in this
Lease. The use, application or retention of the Security Deposit, or any portion thereof, by
Landlord shall not prevent Landlord from exercising any other right or remedy provided by this
Lease or by law (it being intended that Landlord shall not first be required to proceed against the
Security Deposit) and shall not operate as either liquidated damages or as a limitation on any
recovery to which Landlord may otherwise be entitled. If any portion of the Security Deposit is
used, applied or retained by Landlord for the purposes set forth above, Tenant shall, within ten
(10) days after the written demand therefor is made by Landlord, deposit cash with the Landlord in
an amount sufficient to restore the Security Deposit to its original amount.

          (d) If no Event of Default by Tenant then exists, the Security Deposit, or any balance
thereof, shall be returned to Tenant without interest within thirty (30) days after the expiration
of the Term or upon any later date after which Tenant has vacated the Premises. In the absence of
evidence satisfactory to Landlord of any permitted assignment of the right to receive the Security
Deposit, Landlord may return the same to the original Tenant, regardless of one or more assignments
of Tenant’s interest in this Lease or the Security Deposit. Upon the return of the Security
Deposit, or the remaining balance thereof, to the original Tenant or any successor to the original
Tenant, Landlord shall be completely relieved of liability with respect to the Security Deposit.

          (e) If the Project or the Building is transferred, Landlord may transfer the Security Deposit
to the vendee or lessee and Landlord shall thereupon be released by Tenant from all liability for
the return of such Security Deposit. Upon the assumption of such Security Deposit by the
transferee, Tenant shall look solely to the new landlord for the return of said Security Deposit,
and the provisions hereof apply to every transfer or assignment made of the Security Deposit to a
new landlord. Tenant further covenants that it will not assign or encumber or attempt to assign or
encumber the Security Deposit and that neither Landlord nor its successors or assigns shall be
bound by any such assignment, encumbrance, attempted assignment or attempted encumbrance. The
Security Deposit shall not be mortgaged, assigned or encumbered in any manner whatsoever by Tenant
without Landlord’s prior written consent.

-6-

 

     6. Additional Rent.

          (a) Commencing on January 1, 2008, and in each calendar year thereafter during the Term (as
same may be extended), Tenant shall pay to Landlord without deduction or set off except as
otherwise expressly provided in this Lease to the contrary, Tenant’s Allocated Share of the amount
by which Operating Expenses (hereinafter defined) exceed the Operating Expenses in the Base Year.
As used herein, “Operating Expenses” means:

               (i) Operating Expenses. All costs and expenses related to the Project incurred by
Landlord, including, but not limited to:

                    (A) All costs and expenses related to the operation of the Building and Project, including,
but not limited to, lighting, cleaning the Building exterior and common areas of the Building
interior, trash removal and recycling, repairs and maintenance of the roof and storm water
management system, fire suppression and alarm systems, concierge services for the Project,
utilities, removing snow, ice and debris and maintaining all landscape areas, (including replacing
and replanting flowers, shrubbery and trees), maintaining and repairing all other exterior
improvements on the Project, all repairs and compliance costs necessitated by laws enacted or which
become effective after the date hereof (including, without limitation, any additional regulations
or requirements enacted after the date hereof regarding the ADA (hereinafter defined) (as such
applies to the Project or common areas but not to any individual tenant’s space), if applicable)
required of Landlord under applicable laws and rules and regulations;

                    (B) All costs and expenses incurred by Landlord for environmental testing, sampling or
monitoring required by statute, regulation or order of governmental authority, except any costs or
expenses incurred in conjunction with the spilling or depositing of any hazardous substance caused
by Landlord, its officers, employees, agents or contractors or for which any person or other tenant
is legally liable and (in the case of another person) Landlord is reimbursed for by such other
person.;

                    (C) Any other expense or charge (including reasonably allocated general and administrative
charges) which would typically be considered an expense of maintaining, operating or repairing the
Project under generally accepted accounting principles, consistently applied;

                    (D) Management fee not to exceed three percent (3%) of the gross Rents from the Building. It
is expressly understood that legal fees incurred in an action against an individual tenant shall
not be deemed includable as an Operating Expense pursuant to this provision;

                    (E) Capital expenditures and capital repairs and replacements (i) which are reasonably
anticipated to reduce or control the operating expenses of the Building, or (ii) are required by
laws enacted or which become effective after the date hereof as provided in subsection 6(a)(i)(A)
hereof shall be included as operating expenses solely to the extent of the amortized costs of same
amortized on a straight-line basis using a commercially reasonable

-7-

 

interest rate over the useful life of the improvement in accordance with generally accepted
accounting principles, consistently applied;

                    (F) All insurance premiums paid or payable by Landlord for insurance with respect to the
Project as follows: (a) fire and extended coverage insurance (including demolition and debris
removal); (b) insurance against Tenant defaults, Landlord’s rental loss or abatement (but not
including business interruption coverage on behalf of Tenant), from damage or destruction from
environmental hazards, fire or other casualty; (c) Landlord’s commercial general liability
insurance (including bodily injury and property damage) and boiler insurance; and (d) such other
insurance as Landlord may reasonably require or any reputable mortgage lending institution holding
a mortgage on the Premises may require. If the coverage period of any of such insurance obtained
by Landlord commences before or extends beyond the Term, the premium therefore shall be prorated to
the Term. If any such insurance is provided by blanket coverage, the part of the premium allocated
to the Project shall be equitably determined by Landlord but shall not exceed the amount of premium
due if insurance was provided by a policy only insuring the Project. Should Tenant’s occupancy or
use of the Premises at any time change and thereby cause an increase in such insurance premiums on
the Premises, Building and/or Project, Tenant shall pay to Landlord the entire amount of such
reasonably documented increase;

                    (G) property management office rent or rental value for an office not in excess of 2,000
square feet; and

                    (H) costs and fees incurred in implementing and operating any transportation management
program, ride sharing or similar program required by applicable authorities or otherwise incurred
in connection with any mass transit, energy conservation, transportation or similar program
required by applicable authorities.

     Other office buildings have been or may be developed in the Office Park that includes the
Project and the Tax bill(s) for the Project might be included in the Tax bill(s) with such other
buildings. In such case, Landlord shall reasonably allocate the Tax bill(s) (and any Operating
Expenses pertaining to one or more buildings in the Office Park) amongst the Project and such other
buildings.

               (ii) Notwithstanding the foregoing, the term “Operating Expenses” shall not include any of the
following:

                    (A) Repairs or other work occasioned by fire, windstorm or other insured casualty or by the
exercise of the right of eminent domain to the extent of insurance proceeds or condemnation awards
received therefor;

                    (B) Leasing commissions, accountants’, consultants’, auditors or attorneys’ fees, costs and
disbursements and other expenses incurred in connection with negotiations or disputes with
employees, consultants, other tenants or prospective tenants or other occupants, or associated with
the enforcement of any other leases or the defense of Landlord’s title to or interest in the real
property or any part thereof;

-8-

 

                    (C) Costs incurred by Landlord in connection with construction of the Building and related
facilities, the correction of latent defects in construction of the Building or the discharge of
Landlord’s Work;

                    (D) Costs (including permit, licenses and inspection fees) incurred in renovating or otherwise
improving or decorating, painting, or redecorating the Building or space for other tenants or other
occupants or vacant space;

                    (E) Depreciation and amortization except as provided in subsection 6(a)(i)(E) hereof;

                    (F) Costs incurred due to a breach by Landlord or any other tenant of the terms and conditions
of any lease;

                    (G) Overhead and profit increment paid to subsidiaries or affiliates of Landlord for
management or other services on or to the Building or for supplies, utilities or other materials,
to the extent that the costs of such services, supplies, utilities or materials exceed the
reasonable costs that would have been paid had the services, supplies or materials been provided by
unaffiliated parties on a reasonable basis without taking into effect volume discounts or rebates
offered to Landlord as a portfolio purchaser;

                    (H) Interest on debt or amortization payments on any mortgage or deeds of trust or any other
borrowings and any ground rent;

                    (I) Ground rents or rentals payable by Landlord pursuant to any over-lease;

                    (J) Any compensation paid to clerks, attendants or other persons in commercial concessions
operated by Landlord;

                    (K) Costs incurred in managing or operating any “pay for” parking facilities within the
Project;

                    (L) expenses resulting from the gross negligence or willful misconduct of Landlord;

                    (M) Any fines or fees for Landlord’s failure to comply with governmental, quasi-governmental,
or regulatory agencies’ rules and regulations;

                    (N) Legal, accounting and other expenses related to Landlord’s financing, re-financing,
mortgaging or selling the Building or the Project;

                    (O) Taxes;

                    (P) Costs for sculpture, decorations, painting or other objects of art in excess of amounts
typically spent for such items in office buildings of comparable quality in the competitive area of
the Building;

-9-

 

                    (Q) Cost of any political, charitable or civic contribution or donation;

                    (R) Costs that are capital in nature except as provided in Subsection 6(a)(i)(E) hereof;

                    (S) Salaries, wages, or other compensation paid to officers or executives of Landlord above
the level of building manager;

                    (T) Costs of advertising and public relations and promotional costs associated with the
leasing of the Building;

                    (U) Any expenses for which Landlord actually receives reimbursement from insurance,
condemnation awards, other tenants or any other source;

                    (V) Costs incurred for any items to the extent covered by a manufacturer’s, materialman’s,
vendor’s or contractor’s warranty;

                    (W) Costs incurred by Landlord which are associated with the operation of the business of the
legal entity which constitutes Landlord as the same is separate and apart from the costs of the
operation of the Building, including legal entity formation and maintenance charges, legal entity
accounting (excluding the incremental accounting fees relating to the operation of the Building)
and legal fees (other than with respect to Building operations);

               (iii) Taxes. Commencing on January 1, 2008, and in each calendar year thereafter
during the Term (as same may be extended), Tenant shall pay to Landlord, without deduction or set
off, Tenant’s Allocated Share of the amount by which Taxes for such calendar year exceed the amount
of Taxes during the Base Year. Taxes for the Base Year shall be deemed to be the Taxes for the
Project for calendar year 2007, as reflected on the bills for such period rendered by the taxing
authority for the Project (i.e., one-half (1/2) of the July, 2006 bill for Taxes for the Project, and
one-half (1/2) of the July, 2007 bill for Taxes for the Project). Taxes shall be defined as all
taxes, assessments and other governmental charges (“Taxes”), including special assessments for
public improvements or traffic districts which are levied or assessed against the Project during
the Term or, if levied or assessed prior to the Term, which have heretofore been disclosed in
writing to Tenant and which properly are allocable to the Term, and real estate tax appeal
expenditures incurred by Landlord to the extent of any reduction resulting thereby. Nothing herein
contained shall be construed to include as Taxes: (A) any inheritance, estate, succession,
transfer, gift, franchise, corporation, net income or profit tax or capital levy that is or may be
imposed upon Landlord or (B) any transfer tax or recording charge resulting from a transfer of the
Building or the Project; provided, however, that if at any time during the Term the method of
taxation prevailing at the commencement of the Term shall be altered so that in lieu of or as a
substitute for the whole or any part of the taxes now levied, assessed or imposed on real estate as
such there shall be levied, assessed or imposed (i) a tax on the rents received from such real
estate, (ii) a license fee measured by the rents receivable by Landlord from the Premises or any
portion thereof, or (iii) a tax or license fee imposed upon Premises or any portion thereof, then
the same shall be included in the computation of Taxes hereunder.

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          (b) Commencing on January 1, 2008, Tenant shall pay, in monthly installments in advance, on
account of Tenant’s Allocated Share of increases in Operating Expenses and Taxes, the estimated
amount of such Operating Expenses and Taxes for such year in excess of the Base Year amount thereof
as determined by Landlord in its reasonable discretion and as set forth in a notice to Tenant, such
notice to include the basis for such calculation. Prior to the end of the calendar year in which
the Lease commences and thereafter for each successive calendar year (each, a “Lease Year”) or part
thereof, Landlord shall send to Tenant a statement of the amount of Operating Expenses and Taxes in
excess of the Base Year amount thereof and shall indicate what Tenant’s Allocated Share of
increases in Operating Expenses and Taxes shall be. Said amount shall be paid in equal monthly
installments in advance by Tenant as Additional Rent commencing January 1 of the applicable Lease
Year.

          (c) If during the course of any Lease Year, Landlord shall have reason to believe that the
Operating Expenses shall be different than that upon which the aforesaid projections were
originally based, then Landlord, one time in any calendar year, shall be entitled to adjust the
amount by reallocating the remaining payments for such year, for the months of the Lease Year which
remain for the revised projections, and to advise Tenant of an adjustment in future monthly amounts
to the end result that the increases in Operating Expenses shall be collected on a reasonably
current basis each Lease Year.

          (d) In calculating the Operating Expenses as hereinbefore described, if during the Base Year
or any subsequent Lease Year less than ninety-five (95%) percent of the rentable area of the
Building shall have been occupied by tenants, then the Operating Expenses attributable to the
Property shall be deemed for such Lease Year to be amounts equal to the Operating Expenses which
would normally be expected to be incurred had such occupancy of the Building been at least
ninety-five (95%) percent throughout such year, as reasonably determined by Landlord (i.e., taking
into account that certain expenses depend on occupancy (e.g., janitorial) and certain expenses do
not (e.g., landscaping)). Furthermore, if Landlord shall not furnish any item or items of
Operating Expenses to any portions of the Building because such portions are not occupied or
because such item is not required by the tenant of such portion of the Building, for the purposes
of computing Operating Expenses, an equitable adjustment shall be made so that the item of
Operating Expense in question shall be shared only by tenants actually receiving the benefits
thereof.

          (e) By May 30th of each Lease Year, Landlord shall send to Tenant a statement of
actual expenses incurred for Operating Expenses and Taxes for the prior Lease Year showing the
Allocated Share of increases thereof due from Tenant. If the amount prepaid by Tenant exceeds the
amount that was actually due, then Landlord shall refund to Tenant at the time of delivery of such
statement the amount of the over-charge. If Landlord has undercharged Tenant, then Landlord shall
send Tenant an invoice with the additional amount due, which amount shall be paid in full by Tenant
within twenty (20) days of receipt.

          (f) Each of the Operating Expenses and Tax amounts, whether requiring lump sum payment or
constituting projected monthly amounts added to the Fixed Rent, shall for all purposes be treated
and considered as Additional Rent and Tenant’s failure to pay the same as and when due in advance
and without demand shall have the same effect as failure to pay any

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installment of the Fixed Rent and shall afford Landlord all the remedies in the Lease therefor
as well as at law or in equity.

          (g) If this Lease terminates other than at the end of a calendar year, Landlord’s annual
estimate of Operating Expenses shall be accepted by the parties as the actual Operating Expenses
for the year the Lease ends until Landlord provides Tenant with actual statements in accordance
with subsection 6(e) above.

          (h) Tenant may audit Landlord’s records of Operating Expenses and Taxes provided that any such
audit may not occur more frequently than once each calendar year nor apply to any year prior to the
year of the statement being reviewed. Tenant shall exercise such right by written notice to
Landlord given not later than ninety (90) days from receipt of Landlord’s statement of Operating
Expenses. If Tenant’s audit discloses any discrepancy, for a period of seven (7) business days,
Landlord and Tenant shall negotiate in good faith to resolve the dispute and make an appropriate
adjustment, failing which, they shall submit any such dispute to arbitration pursuant to the rules
and under the jurisdiction of the American Arbitration Association in Rockville, Maryland. The
decision rendered in such arbitration shall be final, binding and non-appealable. Arbitration
expenses shall be divided equally between the parties, provided that individual legal and
accounting expenses shall be the respective parties’ responsibility. If, by agreement or
arbitration decision, it is determined that there is a six percent (6%) variance in Tenant’s favor,
Landlord shall reimburse the actual, reasonable hourly costs to Tenant of Tenant’s audit (including
legal and accounting costs). If Tenant’s auditor charges a contingent fee and Landlord is
responsible for the payment of such fee, Landlord shall only pay the reasonable hourly fee of such
auditor.

          (i) Any provision of this Section to the contrary notwithstanding, in no event shall
Controllable Expenses exceed Controllable Expenses from the prior year by more than seven (7%)
percent. “Controllable Expenses” mean all Operating Expenses that are within Landlord’s reasonable
control. Controllable expenses do not include, without limitation, the following: (i) insurance
premiums; (ii) utility costs; (iii) costs incurred for ice and snow removal; (iv) Taxes; and (v)
property management fees (which shall be subject to the limitations set forth in Section
6(a)(i)(d)).

     7. Utilities. Landlord shall not be liable for any interruption or delay in electric
or any other utility service for any reason unless caused by the gross negligence or willful
misconduct of Landlord or its agents. Landlord may change the electric and other utility provider
to the Project or Building at any time. Landlord, during the hours of 8:00 A.M. to 6:00 P.M. on
weekdays and on Saturdays from 8:00 A.M. to 1:00 P.M. (“Working Hours”), excluding legal holidays
(as of the date of this Lease, New Year’s Day; Good Friday, Memorial Day; the Fourth of July; Labor
Day; Thanksgiving Day; and Christmas Day), shall furnish the Premises with heat and
air-conditioning in the respective seasons, and at all times (other than emergencies) will provide
the Premises with electricity for lighting and usual office equipment. At any hours other than the
aforementioned, HVAC service (which is currently charged at $45.00 per hour) will be provided at
Tenant’s expense. Notwithstanding anything herein to the contrary, if Landlord reasonably
determines that Tenant’s use of electricity is excessive, Tenant shall pay for the installation of
a separate electric meter to measure electrical usage in excess of normal office use and to pay
Landlord for all such excess electricity registered in such submeter.

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     If any of the services provided for in this Lease by Landlord are interrupted or stopped or if
there is a defect in supply, character of, adequacy or quality of any of such services
(collectively, a “Failure”), Landlord will use reasonable diligence to resume the service and
correct the Failure; provided, however, no Failure of any of these services will create any
liability for Landlord (including, without limitation, any liability for damages to Tenant’s
personal property caused by any such Failure), constitute an actual or constructive eviction or,
except as expressly provided below, cause any abatement of the Rent payable under this Lease or in
any manner or for any purpose relieve Tenant from any of its obligations under this Lease. If, due
to reasons within Landlord’s reasonable control, any of the services required to be provided by
Landlord under the express terms of this Lease should become subject to a Failure and should remain
subject to a Failure for a period in excess of 72 hours after notice of such Failure from Tenant to
Landlord, and if such Failure should render all or any portion of the Premises untenantable so that
Tenant is actually unable to use any or all of the Premises for the normal conduct of its business
(“Untenantable”), then commencing upon the expiration of such 72 hour period, Tenant’s Rent will
equitably abate in proportion to the portion of the Premises so rendered Untenantable for so long
as such services remain subject to the Failure for such reasons. Without limiting those reasons
for a Failure that may be beyond Landlord’s reasonable control, any such Failure due to the
following will be deemed caused by a reason beyond Landlord’s control: (i) that is required in
order to comply with any laws, ordinances or requests from governmental authorities; (ii) any
casualty; (iii) an accident; (iv) an emergency; (v) shortages of labor or materials; or (vi) any
other causes of any kind whatsoever that are beyond the control of Landlord, including, but not
limited to: (A) lack of access to the Building or the Premises (which shall include, but not be
limited to, the lack of access to the Building or the Premises when it or they are structurally
sound but inaccessible due to evacuation of the surrounding area or damage to nearby structures or
public areas); (B) any cause outside the Building; (C) reduced air quality or other contaminants
within the Building that would adversely affect the Building or its occupants (including, but not
limited to, the presence of biological or other airborne agents within the Building or the
Premises); (D) disruption of mail and deliveries to the Building or the Premises resulting from a
casualty; (E) disruptions of telephone and telecommunications services to the Building or the
Premises resulting from a casualty; or (F) blockages of any windows, doors, or walkways to the
Building or the Premises resulting from a casualty.

     8. Signs; Use of Premises and Common Areas.

          (a) Landlord shall, at no direct cost to Tenant, provide Tenant with standard identification
signage on all Building directories and at the entrance to the Premises. No other signs shall be
placed, erected or maintained by Tenant at any place upon the exterior of the Premises, Building or
Project. Reference is hereby made to Exhibit H.

          (b) Tenant may use and occupy the Premises for the Permitted Uses and for no other purpose;
provided that Tenant’s right to so use and occupy the Premises shall remain expressly subject to
the provisions of this Lease including, without limitation, the provisions of Article
26-Governmental Regulations. No machinery or equipment shall be permitted that shall cause
vibration, noise or disturbance beyond the Premises. Tenant shall not abandon the Premises at any
time during the Term.

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          (c) Tenant shall not overload any floor or part thereof in the Premises or the Building,
including any public corridors or elevators therein, bringing in, placing, storing, installing or
removing any large or heavy articles, and Landlord may prohibit, or may direct and control the
location and size of, safes and all other heavy articles, and may require, at Tenant’s sole cost
and expense, supplementary supports of such material and dimensions as Landlord may deem necessary
to properly distribute the weight.

          (d) Tenant shall not install in or for the Premises, without Landlord’s prior written
approval, not to be unreasonably withheld, conditioned or delayed, any equipment which requires
more electric current than Landlord is required to provide under this Lease, (i.e., at least five
(5) watts per rentable square foot of the Premises) and Tenant shall ascertain from Landlord the
maximum amount of load or demand for or use of electrical current which can safely be permitted in
and for the Premises, taking into account the capacity of electric wiring in the Building and the
Premises and the needs of Building common areas (interior and exterior) and the requirements of
other tenants of the Building, and Tenant and shall not in any event connect a greater load than
such safe capacity.

          (e) Tenant shall not commit or suffer any waste upon the Premises, Building or Project or any
nuisance, or do any other act or thing which may unreasonably disturb any other tenant in the
Building or Project.

          (f) Tenant shall have the right, non-exclusive and in common with others, to use the exterior
paved driveways and walkways of the Building for vehicular and pedestrian access to the Building
twenty-four (24) hours a day, seven (7) days a week. Tenant shall also have the right, in common
with other tenants of the Building and Landlord, to use the designated parking areas of the Project
for the parking of automobiles of Tenant and its employees and business visitors, incident to
Tenant’s permitted use of the Premises.

     9. Environmental Matters.

          (a) Hazardous Substances.

               (i) Tenant shall not, except as provided in subparagraph (ii) below, bring or otherwise cause
to be brought or permit any of its agents, employees, contractors or invitees to bring in, on or
about any part of the Premises, Building or Project, any hazardous substance or hazardous waste in
violation of law, as such terms are or may be defined in (x) the Comprehensive Environmental
Response, Compensation and Liability Act, 42 U.S.C. 9601 et seq., as the same may from time to time
be amended, and the regulations promulgated pursuant thereto (“CERCLA”); the United States
Department of Transportation Hazardous Materials Table (49 CFR 172.102); by the Environmental
Protection Agency as hazardous substances (40 CFR Part 302); the Clean Air Act; and the Clean Water
Act, and all amendments, modifications or supplements thereto; and/or (y) any other rule,
regulation, ordinance, statute or requirements of any governmental or administrative agency
regarding the environment (collectively, (x) and (y) shall be referred to as an “Applicable
Environmental Law”).

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               (ii) Tenant may bring to and use at the Premises hazardous substances incidental to its normal
business operations under the NAI Code referenced in subsection 1(o) above in the quantities
reasonably required for Tenant’s normal business and in accordance with Applicable Environmental
Laws. Tenant shall store and handle such substances in strict accordance with Applicable
Environmental Laws. From time to time promptly following Landlord’s written request, Tenant shall
provide Landlord with documents identifying the hazardous substances stored or used by Tenant on
the Premises and describing the chemical properties of such substances and such other information
reasonably requested by Landlord or Tenant. Prior to the expiration or sooner termination of this
Lease, Tenant shall remove all hazardous substances from the Premises.

               (iii) Tenant shall defend, indemnify and hold harmless Landlord and Brandywine Realty Trust
and their respective employees and agents from and against any and all third-party claims, actions,
damages, liability and expense (including all reasonable attorneys’, consultant’s and expert’s
fees, expenses and liabilities incurred in defense of any such claim or any action or proceeding
brought thereon) arising from Tenant’s storage and use of hazardous substances on the Premises
including, without limitation, any and all costs incurred by Landlord because of any investigation
of the Project or any cleanup, removal or restoration of the Project to remove or remediate
hazardous or hazardous wastes deposited by Tenant. Without limitation of the foregoing, if
Tenant, its officers, employees, agents, contractors, licensees or invitees cause contamination of
the Premises by any hazardous substances, Tenant shall promptly at its sole expense, take any and
all necessary actions to return the Premises to the condition existing prior to such contamination,
or in the alternative take such other remedial steps as may be required by law or reasonably
recommended by Landlord’s environmental consultant.

          (b) NAI Numbers.

               (i) Tenant represents and warrants that Tenant’s NAI number as designated in the North
American Industry Classification System Manual prepared by the Office of Management and Budget, and
as set forth in Article 1(o) hereof, is correct. Tenant represents that the specific
activities intended to be carried on in the Premises are in accordance with Article 1(l).

               (ii) Except as provided in Article 9(a)(ii), Tenant shall not engage in operations at
the Premises which involve the generation, manufacture, refining, transportation, treatment,
storage, handling or disposal of “hazardous substances” or “hazardous waste” as such terms are
defined under any Applicable Environmental Law. Tenant further covenants that it will not cause or
permit to exist any “release” or “discharge” (as such term is defined under Applicable
Environmental Laws) on or about the Premises.

               (iii) Tenant shall, at its expense, comply with all requirements of Applicable Environmental
Laws pertaining thereto.

               (iv) In addition, upon Landlord’s written notice, Tenant shall cooperate with Landlord in
obtaining Applicable Environmental Laws approval of any transfer of the Building. Tenant shall (1)
execute and deliver all affidavits, reports, responses to questions, applications or other filings
required by Landlord and related to Tenant’s activities at the

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Premises, (2) allow inspections and testing of the Premises during normal business hours, and
(3) as respects the Premises, perform any requirement reasonably required by Landlord necessary for
the receipt of approvals under Applicable Environmental Laws, provided the foregoing shall be at no
out-of-pocket cost or expense to Tenant except for clean-up and remediation costs arising from
Tenant’s violation of this Article 9.

          (c) Additional Terms. If Tenant fails to comply with this Article, Landlord
may, after written notice to Tenant and Tenant’s failure to cure within thirty (30) days of its
receipt of such notice, at Landlord’s option, perform any and all of Tenant’s obligations as
aforesaid and all costs and expenses incurred by Landlord in the exercise of this right all be
deemed to be Additional Rent payable on demand and with interest at the Default Rate. Any
provision of this Section to the contrary notwithstanding, Tenant shall not be held
responsible for any environmental issue at the Premises unless such issue was caused by an action
or omission of Tenant or its agents, employees, consultants or invitees.

          (d) Landlord has not used, generated, manufactured, produced, stored, released, discharged or
disposed of on, under or about the Premises or transported to or from the Premises, any Hazardous
Substances or allowed any other entity or person to do so to its knowledge. Landlord has no
knowledge that any Hazardous Substances has been produced, stored, released, discharged or disposed
of on, under or about the Building by any entity or person.

          (e) Survival. This Article shall survive the expiration or sooner
termination of this Lease.

     10. Alterations. Tenant will not cut or drill into or secure any fixture, apparatus
or equipment or make alterations, improvements or physical additions (collectively, “Alterations”)
of any kind to any part of the Premises without first obtaining Landlord’s written consent, such
consent not to be unreasonably withheld. Landlord’s consent shall not be required for (i) the
installation of any office equipment or fixtures including internal partitions which do not require
disturbance of any structural elements or systems (other than attachment thereto) within the
Building or (ii) minor work, including decorations, which does not require disturbance of any
structural elements or systems (other than attachment thereto) within the Building and which costs
in the aggregate less than $50,000. If no approval is required or if Landlord approves Tenant’s
Alterations and Tenant’s contractors which are to do the work, Tenant, prior to the commencement of
labor or supply of any materials, must furnish to Landlord (i) a duplicate or original policy or
certificates of insurance evidencing (a) commercial general liability insurance for personal injury
and property damage in the minimum amount of $1,000,000.00 combined single limit, (b) statutory
workman’s compensation insurance, and (c) employer’s liability insurance from each contractor to be
employed (all such policies shall be non-cancelable without thirty (30) days prior written notice
to Landlord and shall be in amounts and with companies satisfactory to Landlord); (ii) construction
documents prepared and sealed by a registered Maryland architect if such alteration causes the
aggregate of all Alterations to be in excess of $50,000; (iii) all applicable building permits
required by law; and (iv) an executed, effective Waiver of Mechanics Liens from such contractors
and all major trade sub-contractors in states allowing for such waivers or the cost of such
alteration must be bonded by Tenant. In connection with all Alterations involving Landlord’s
approval, Landlord shall be entitled to

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collect a construction management fee equal to one percent (1%) of the cost of the Alterations
in connection with Landlord’s services in supervising and review of such Alterations. Any approval
by Landlord permitting Tenant to do any or cause any work to be done in or about the Premises shall
be and hereby is conditioned upon Tenant’s work being performed by workmen and mechanics working in
harmony and not interfering with labor employed by Landlord, Landlord’s mechanics or their
contractors or other tenants and their contractors. If at any time any of the workmen or mechanics
performing any of Tenant’s work shall be unable to work in harmony or shall interfere with any
labor employed by Landlord, other tenants or their respective mechanics and contractors, then the
permission granted by Landlord to Tenant permitting Tenant to do or cause any work to be done in or
about the Premises, may be withdrawn by Landlord upon forty-eight (48) hours written notice to
Tenant.

     All Alterations (whether temporary or permanent in character) made in or upon the Premises,
either by Landlord or Tenant, shall be Landlord’s property upon installation and shall remain on
the Premises without compensation to Tenant unless Landlord provides written notice to Tenant to
remove same at the time of consenting thereto, in which event Tenant shall, following the
expiration or earlier termination of this Lease, promptly remove such Alterations and restore the
Premises to good order and condition. Additionally, at Lease termination, Tenant shall remove all
furniture, movable trade fixtures and equipment (including telephone, security and communication
equipment system wiring and cabling). All such installations, removals and restoration shall be
accomplished in a good and workmanlike manner so as not to damage the Premises or Building and in
such manner so as not to unreasonably disturb other tenants in the Building. If Tenant fails to
remove any items required to be removed pursuant to this Article, Landlord may do so and the
reasonable costs and expenses thereof shall be deemed Additional Rent hereunder and shall be
reimbursed by Tenant to Landlord within fifteen (15) business days of Tenant’s receipt of an
invoice therefor from Landlord.

     11. Construction Liens. Tenant will not suffer or permit any contractor’s,
subcontractor’s or supplier’s lien (a “Construction Lien”) to be filed against the Premises or any
part thereof by reason of work, labor services or materials supplied or claimed to have been
supplied to Tenant; and if any Construction Lien shall at any time be filed against the Premises or
any part thereof, Tenant, within ten (10) business days after notice of the filing thereof, shall
cause it to be discharged of record by payment, deposit, bond, order of a court of competent
jurisdiction or otherwise. If Tenant shall fail to cause such Construction Lien to be discharged
within the period aforesaid, then in addition to any other right or remedy, Landlord may, but shall
not be obligated to, discharge it either by paying the amount claimed to be due or by procuring the
discharge of such lien by deposit or by bonding proceedings. Any amount so paid by Landlord, plus
all of Landlord’s costs and expenses associated therewith (including, without limitation,
reasonable legal fees), shall constitute Additional Rent payable by Tenant under this Lease and
shall be paid by Tenant to Landlord on demand with interest from the date of advance by Landlord at
the Default Rate.

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     12. Assignment and Subletting.

          (a) Subject to the remaining subsections of Article 12, except as expressly permitted
pursuant to this section, Tenant shall not, without Landlord’s prior written consent, such consent
not to be unreasonably withheld, conditioned or delayed, assign, transfer or hypothecate this Lease
or any interest herein or sublet the Premises or any part thereof. Any of the foregoing acts
without such consent shall be void. Subject to subsection 12(i) below, this Lease shall not, nor
shall any interest herein, be assignable as to the interest of Tenant by operation of law or by
merger, consolidation or asset sale, without the Landlord’s written consent.

          (b) If Tenant desires to assign this Lease or sublet all or any part of the Premises, Tenant
shall give notice to Landlord of such desire, including the name, address and contact party for the
proposed assignee or subtenant, a description of such party’s business history, the effective date
of the proposed assignment or sublease (including the proposed occupancy date by the proposed
assignee or sublessee), and in the instance of a proposed sublease, the square footage to be
subleased, a floor plan depicting the proposed sublease area, and a statement of the duration of
the proposed sublease (which shall in any and all events expire by its terms prior to the scheduled
expiration of this Lease, and immediately upon the sooner termination hereof). With respect to
proposed assignments, and proposed subleases where the proposed sublease term would expire within
the last twelve (12) months of the then current Term, Landlord may, at its option, and in its sole
and absolute discretion, exercisable by notice given to Tenant within sixty (60) days next
following Landlord’s receipt of Tenant’s notice (which notice from Tenant shall, as a condition of
its effectiveness, include all of the above-enumerated information), elect to recapture the
Premises if Tenant is proposing to sublet or assign the Premises or such portion as is proposed by
Tenant to be sublet (and in each case, the designated and non-designated parking spaces included in
this demise, or a pro-rata portion thereof in the instance of the recapture of less than all of the
Premises), and terminate this Lease with respect to the space being recaptured. Tenant may void
the Landlord’s recapture right by delivering written notice withdrawing Tenant’s proposed sublease
or assignment request, such notice being given to Landlord not later than five (5) days after
receipt of Landlord’s recapture notice.

          (c) If Landlord elects to recapture the Premises or a portion thereof as aforesaid, then from
and after the effective date thereof as approved by Landlord, after Tenant shall have fully
performed such obligations as are enumerated herein to be performed by Tenant in connection with
such recapture, and except as to obligations and liabilities accrued and unperformed (and any other
obligations expressly stated in this Lease to survive the expiration or sooner termination of this
Lease), Tenant shall be released of and from all lease obligations thereafter otherwise accruing
with respect to the Premises (or such lesser portion as shall have been recaptured by Landlord).
The Premises, or such portion thereof as Landlord shall have elected to recapture, shall be
delivered by Tenant to Landlord free and clear of all furniture, furnishings, personal property and
removable fixtures, with Tenant repairing and restoring any and all damage to the Premises
resulting from the installation, handling or removal thereof, and otherwise in the same condition
as Tenant is, by the terms of this Lease, required to redeliver the Premises to Landlord upon the
expiration or sooner termination of this Lease. In the event of a sublease of less than all of the
Premises, the cost of erecting any required demising walls,

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entrances and entrance corridors, and any other or further improvements required in connection
therewith, including without limitation, modifications to HVAC, electrical, plumbing, fire, life
safety and security systems (if any), painting, wallpapering and other finish items as may be
acceptable to or specified by Landlord, all of which improvements shall be made in accordance with
applicable legal requirements and Landlord’s then-standard base building specifications, shall be
performed by Landlord’s contractors, and shall be divided evenly by Tenant and Landlord. If
Landlord recaptures the Premises (or any portion thereof), Tenant’s Fixed Rent, Operating Expenses
and other monetary obligations hereunder shall be adjusted pro-rated based upon the reduced
rentable square footage then comprising the Premises.

          (d) If Landlord provides written notification to Tenant electing not to recapture the Premises
(or so much thereof as Tenant had proposed to sublease), then Tenant may proceed to market the
designated space and may complete such transaction and execute an assignment of this Lease or a
sublease agreement (in each case in form acceptable to Landlord) within a period of five (5) months
next following Landlord’s notice to Tenant that it declines to recapture such space, provided that
Tenant shall have first obtained in any such case Landlord’s prior written consent to such
transaction, which consent shall not be unreasonably withheld. If, however, Tenant shall not have
assigned this Lease or sublet the Premises with Landlord’s prior written consent as aforesaid
within five (5) months next following Landlord’s notice to Tenant that Landlord declines to
recapture the Premises (or such portion thereof as Tenant initially sought to sublease), then in
such event, Tenant shall again be required to request Landlord’s consent to the proposed
transaction, whereupon Landlord’s right to recapture the Premises (or such portion as Tenant shall
desire to sublease) shall be renewed upon the same terms and as otherwise provided in subsection
(b) above.

          (e) For purposes of this Article 12, and without limiting the basis upon which Landlord may
withhold its consent to any proposed assignment or sublease, it shall not be unreasonable for
Landlord to withhold its consent to such assignment or sublease if: (i) the proposed assignee or
sublessee shall have a net worth less than the net worth of Tenant as of the date hereof; (ii) the
proposed assignee or sublessee shall have no reliable credit history or an unfavorable credit
history, or other reasonable evidence exists that the proposed assignee or sublessee will
experience difficulty in satisfying its financial or other obligations under this Lease; (iii) the
proposed assignee or sublessee, in Landlord’s reasonable opinion, consistent with other tenancies
in the Building, is not reputable and of good character; (iv) the proposed subleased portion is a
reasonably demisable portion of the Premises; Tenant is proposing to assign or sublease to an
existing tenant of the Building, or to another prospect with whom Landlord or its partners, or
their affiliates are then negotiating and there is other suitable space in the Building available
for lease; (v) the nature of such party’s business shall reasonably require more than 3.4 parking
spaces per 1,000 rentable square feet of floor space, or (vi) the nature of such party’s proposed
business operation would or might reasonably permit or require the use of the Premises in a manner
inconsistent with the “Permitted Uses” specified herein or would violate the terms of any other
lease for space in the Building.

          (f) Any sums or other economic consideration received by Tenant as a result of any subletting,
assignment or license (except rental or other payments received which are attributable to the
amortization of the cost of leasehold improvements made to the sublet or assigned portion of the
premises by Tenant for subtenant or assignee, and other reasonable

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expenses incident to the subletting or assignment, including standard leasing commissions)
whether denominated rentals under the sublease or otherwise, which exceed, in the aggregate, the
total sums which Tenant is obligated to pay Landlord under this Lease (prorated to reflect
obligations allocable to that portion of the premises subject to such sublease or assignment) shall
be divided evenly between Landlord and Tenant, with Landlord’s portion being payable to Landlord as
Additional Rental under this Lease without affecting or reducing any other obligation of Tenant
hereunder.

          (g) Regardless of Landlord’s consent, no subletting or assignment shall release Tenant of
Tenant’s obligation or alter the primary liability of Tenant to pay the Rent and to perform all
other obligations to be performed by Tenant hereunder. The acceptance of rental by Landlord from
any other person shall not be deemed to be a waiver by Landlord of any provision hereof. Consent
to one assignment or subletting shall not be deemed consent to any subsequent assignment or
subletting. If any assignee or successor of Tenant defaults in the performance of any of the terms
hereof, Landlord may proceed directly against Tenant without the necessity of exhausting remedies
against such assignee or successor.

          (h) If (i) the Premises or any part thereof are sublet and Tenant is in default under this
Lease, or (ii) this Lease is assigned by Tenant, then, Landlord may collect Rent from the assignee
or subtenant and apply the net amount collected to the rent herein reserved; but no such collection
shall be deemed a waiver of the provisions of this Article with respect to assignment and
subletting, or the acceptance of such assignee or subtenant as Tenant hereunder, or a release of
Tenant from further performance of the covenants herein contained.

          (i) In connection with each proposed assignment or subletting of the Premises by Tenant,
Tenant shall pay to Landlord (i) an administrative fee of $250 per request (including requests for
non-disturbance agreements and Landlord’s or its lender’s waivers) in order to defer Landlord’s
administrative expenses arising from such request, plus (ii) Landlord’s reasonable attorneys’ fees.

          (j) Tenant may, after notice to, but without the consent of Landlord, assign or this Lease or
sublet the Premises to an affiliate (i.e., a corporation 50% or more of whose capital stock is
owned by the same stockholders owning 50% or more of Tenant’s capital stock), parent or subsidiary
corporation of Tenant or assign this Lease to a corporation to which it sells or assigns all of
substantially all of its assets or stock or with which it may be consolidated or merged
(“Affiliate”), provided such purchasing, consolidated, merged, affiliated or subsidiary corporation
shall, in writing, assume and agree to perform all of the obligations of Tenant under this Lease,
shall have a net worth at least equal to the net worth of Tenant as of the date hereof, and it
shall deliver such assumption with a copy of such assignment to Landlord within ten (10) days
thereafter, and provided further that Tenant shall not be released or discharged from any liability
under this Lease by reason of such assignment.

          (k) Anything in this Article to the contrary notwithstanding, no assignment or sublease shall
be permitted under this Lease if Tenant is in default at the time of such assignment or subletting.

-20-

 

          (l) Anything in this Article to the contrary notwithstanding, no subtenant shall assign such
subtenant’s sublease nor sub-sublet such subtenant’s premises without Landlord’s prior written
consent, which consent may be withheld in Landlord’s sole discretion.

     13. Landlord’s Right of Entry. Landlord and persons authorized by Landlord may enter
the Premises at all reasonable times upon reasonable advance notice (except in the case of an
emergency in which case no prior notice is necessary) for the purpose of inspections, repairs,
alterations to adjoining space, appraisals, or other reasonable purposes; including enforcement of
Landlord’s rights under this Lease. Landlord shall not be liable for inconvenience to or
disturbance of Tenant by reason of any such entry; provided, however, that in the case of repairs
or work, such shall be done, so far as practicable, so as to not unreasonably interfere with
Tenant’s use of the Premises. Provided, however, that such efforts shall not require Landlord to
use overtime labor unless Tenant shall pay for the increased costs to be incurred by Landlord for
such overtime labor. Landlord also may enter the Premises at all reasonable times after giving
prior oral notice to Tenant, to exhibit the Premises to any prospective purchaser and/or mortgagee.
Landlord also may enter the Premises at all reasonable times only during the last ten (10) months
of the Term, after giving prior oral notice to Tenant, to exhibit the Premises to any prospective
tenants.

     14. Repairs and Maintenance.

          (a) Except as specifically otherwise provided in subparagraphs (b) and (c) of this Article,
Tenant, at its sole cost and expense and throughout the Term of this Lease, shall keep and maintain
the Premises in good order and condition, free of accumulation of dirt and rubbish, and shall
promptly make all non-structural repairs necessary to keep and maintain such good order and
condition. Landlord shall, at Landlord’s sole cost, replace, as required, Building Standard
lights, ballasts, tubes and ceiling tiles in the Premises. Tenant shall have the option of
replacing outlets and similar equipment itself or it shall have the ability to advise Landlord of
Tenant’s desire to have Landlord make such repairs. If requested by Tenant, Landlord shall make
such repairs to the Premises within a reasonable time of notice to Landlord and shall charge Tenant
for such services at Landlord’s standard rate (such rate to be competitive with the market rate for
such services). When used in this Article, the term “repairs” shall include replacements and
renewals when necessary. All repairs made by Tenant shall utilize materials and equipment which
are at least equal in quality and usefulness to those originally used in constructing the Building
and the Premises.

          (b) Landlord, throughout the Term of this Lease and at Landlord’s sole cost and expense, shall
make all necessary repairs to the footings and foundations and the structural steel columns and
girders forming a part of the Premises.

          (c) Landlord shall maintain all HVAC systems, plumbing and electric systems serving the
Building and the Premises. Landlord’s cost for HVAC, electric and plumbing service, maintenance
and repairs, as limited under Article 6 with respect to capital expenditures, shall be
included as a portion of Operating Expenses as provided in Article 6.

- 21 -

 

          (d) Landlord, throughout the Term of this Lease, shall make all necessary repairs to the Building
outside of the Premises and to the common areas, including the roof, walls, floors, exterior
portions of the Premises and the Building, utility lines, equipment and other utility facilities in
the Building, which serve more than one tenant of the Building, and to any driveways, sidewalks,
curbs, loading, parking and landscaped areas, and other exterior improvements for the Building;
provided, however, that Landlord shall have no responsibility to make any repairs unless and until
Landlord receives written notice of the need for such repair or Landlord has actual knowledge of
the need to make such repair. The cost of all repairs, as limited under Article 6 with
respect to capital repairs, to be performed by Landlord pursuant to this Subsection shall be
included in Operating Expenses as provided in Article 6 hereof.

          (e) Landlord shall keep and maintain all common areas appurtenant to the Building and any
sidewalks, parking areas, curbs and access ways adjoining the Property in a clean and orderly
condition, free of accumulation of dirt, rubbish, snow and ice, and shall keep and maintain all
landscaped areas in a neat and orderly condition. The cost of all work to be performed by Landlord
pursuant to this Subsection shall be included in Operating Expenses as provided in Article
6 hereof. Landlord’s obligation to provide snow removal services shall be limited to the
parking areas and driveways in the Project and the sidewalk entrances to the Building.

          (f) Notwithstanding anything herein to the contrary, repairs to the Premises, Building or
Project and its appurtenant common areas made necessary by a negligent or willful act or omission
of Tenant or any employee, agent, contractor, or invitee of Tenant shall be made at the sole cost
and expense of Tenant, except to the extent of insurance proceeds received by Landlord.

          (g) Landlord shall provide Tenant with janitorial services for the Premises Monday through
Friday of each week in accordance with the guidelines set forth in Exhibit D attached
hereto and the cost thereof shall be included in Operating Expenses as provided in Article
6 hereof.

          (h) Landlord reserves the right at any time and from time to time to make or permit changes to
or revisions in the Building common areas and/or the Project, including, but not limited to,
additions, subtractions, rearrangements or other modifications thereto (including, but not limited
to, rearranging or modifying any entrances and or exits), provided such changes and/or revisions do
not materially adversely affect Tenant’s access to the Premises and the Building’s elevators.

     15. Insurance.

          (a) Tenant shall obtain and keep in force at all times during the term hereof, at its own
expense, commercial general liability insurance including contractual liability and personal injury
liability and all similar coverage, with combined single limits of at least $3,000,000.00 on
account of bodily injury to or death of one or more persons as the result of any one accident or
disaster and on account of damage to property. Tenant shall also require its movers to procure and
deliver to Landlord a certificate of insurance naming Landlord as an additional insured.

- 22 -

 

          (b) Tenant shall, at its sole cost and expense, maintain in full force and effect on all
Tenant’s trade fixtures, equipment and personal property on the Premises, a policy of “special
form” property insurance covering the full replacement value of such property.

          (c) All liability insurance required hereunder shall not be subject to cancellation without at
least thirty (30) days prior notice to all insureds, and shall name Landlord, Brandywine Realty
Trust and the Building’s property manager as additional insureds, as their interests may appear,
and, if requested by Landlord, shall also name as an additional insured any mortgagee or holder of
any mortgage which may be or become a lien upon any part of the Premises. Prior to the
commencement of the Term, Tenant shall provide Landlord with certificates which evidence that the
coverages required have been obtained for the policy periods. Tenant shall also furnish to
Landlord throughout the term hereof replacement certificates at least thirty (30) days prior to the
expiration dates of the then current policy or policies. All the insurance required under this
Lease shall be issued by insurance companies authorized to do business in the State of Maryland
with a financial rating of at least an A-VIII as rated in the most recent edition of Best’s
Insurance Reports and in business for the past five years. The limit of any such insurance shall
not limit the liability of Tenant hereunder. If Tenant fails to procure and maintain such
insurance, Landlord may, but shall not be required to, procure and maintain the same, at Tenant’s
expense to be reimbursed by Tenant as Additional Rent within ten (10) days of written demand. Any
deductible under such insurance policy or self-insured retention under such insurance policy in
excess of Fifty Thousand Dollars ($50,000) must be approved by Landlord in writing prior to
issuance of such policy. Tenant shall not self-insure without Landlord’s prior written consent.
The policy limits set forth herein shall be subject to periodic review, and Landlord reserves the
right to require that Tenant increase the liability coverage limits if, in the reasonable opinion
of Landlord, the coverage becomes inadequate or is less than commonly maintained by tenants of
similar buildings in the area making similar uses.

          (d) Landlord shall obtain and maintain the following insurance during the Term of this Lease:
(i) replacement cost insurance including “special form” property insurance on the Building and on
the Project covering the full replacement cost of the Project (exclusive of the cost of
excavations, foundations, footings and value of land) (ii) builder’s risk insurance for the
Landlord’s Work to be constructed by Landlord in the Project, and (iii) commercial general
liability insurance (including personal injury and contractual liability coverage) covering
Landlord’s operations at the Project with combined single limits of at least $2,000,000.00.

          (e) Each party hereto, and anyone claiming through or under them by way of subrogation, waives
and releases any cause of action it might have against the other party and Brandywine Realty Trust
and their respective employees, officers, members, partners, trustees and agents, on account of any
loss or damage that is insurable against under any insurance policy required to be obtained
hereunder, whether or not such policies are actually obtained. Each party hereto shall cause its
insurance carrier to endorse all applicable policies waiving the carrier’s right of recovery under
subrogation or otherwise against the other party. During any period while such waiver of right of
recovery is in effect, each party shall look solely to any proceeds of any such policies for
compensation for loss.

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     16. Indemnification.

          (a) Tenant shall defend, indemnify and hold harmless Landlord, Brandywine Realty Services
Corp. and Brandywine Realty Trust and their respective employees and agents from and against any
and all third-party claims, actions, damages, liability and expense (including all reasonable
attorneys’ fees, expenses and liabilities incurred in defense of any such claim or any action or
proceeding brought thereon) arising from (i) Tenant’s improper use of the Premises, (ii) the
improper conduct of Tenant’s business, (iii) any activity, work or things done, permitted or
suffered by Tenant or its agents, licensees or invitees in or about the Premises or elsewhere
contrary to the requirements of the Lease, (iv) any breach or default in the performance of any
obligation of Tenant’s part to be performed under the terms of this Lease, and (v) any negligence
or willful act of Tenant or any of Tenant’s agents, contractors, employees or invitees. Without
limiting the generality of the foregoing, Tenant’s obligations shall include any case in which
Landlord, Brandywine Realty Services Corp. or Brandywine Realty Trust shall be made a party to any
litigation commenced by or against Tenant, its agents, subtenants, licensees, concessionaires,
contractors, customers or employees, in which event Tenant shall defend, indemnify and hold
harmless Landlord, Brandywine Realty Services Corp. and Brandywine Realty Trust and upon notice
from Landlord shall defend the same at Tenant’s expense by counsel reasonably satisfactory to
Landlord and shall pay all costs, expenses and reasonable attorneys’ fees incurred or paid by
Landlord, Brandywine Realty Services Corp. and Brandywine Realty Trust in connection with such
litigation, after notice to Tenant and Tenant’s refusal to defend such litigation.

          (b) Landlord shall defend, indemnify and hold harmless Tenant and its respective employees and
agents from and against any and all third-party claims, actions, damages, liability and expense
(including all attorneys’ fees, expenses and liabilities incurred in defense of any such claim or
any action or proceeding brought thereon) arising from (i) Landlord’s improper use of the Premises,
the Building or the Project, (ii) the improper conduct of Landlord’s business, (iii) any activity,
work or things done, permitted or suffered by Landlord in or about the Premises or elsewhere in the
Project contrary to the requirements of this Lease, (iv) any breach or default in the performance
of any obligation of Landlord’s part to be performed under the terms of this Lease, and (v) any
negligence or willful act of Landlord or any of Landlord’s agents, contractors, employees or
invitees. Without limiting the generality of the foregoing, Landlord’s obligations shall include
any case in which Tenant shall be made a party to any litigation commenced by or against Landlord,
its agents, subtenants, licensees, concessionaires, contractors, customers or employees, in which
event Landlord shall indemnify and hold harmless Tenant and upon notice from Tenant shall defend
the same at Landlord’s expense by counsel reasonably satisfactory to Tenant and shall pay all
costs, expenses and reasonable attorneys’ fees incurred or paid by Tenant in connection with such
litigation, after notice to Landlord and Landlord’s refusal to defend such litigation.

     17. Quiet Enjoyment. Provided no Event of Default by Tenant exists, Tenant shall
peaceably and quietly hold and enjoy the Premises for the Term, without hindrance from Landlord, or
anyone claiming by through or under Landlord under and subject to the terms and conditions of this
Lease and of any mortgages now or hereafter affecting all of or any portion of the Premises,
subject to Article 19.

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     18. Casualty.

          (a) Except as provided below, in case of damage to the Premises by fire or other insured
casualty, Landlord shall repair the damage. Such repair work shall be commenced promptly following
notice of the damage and completed with due diligence, taking into account the time required for
Landlord to effect a settlement with and procure insurance proceeds from the insurer, except for
delays due to governmental regulation, scarcity of or inability to obtain labor or materials,
intervening acts of God or other causes beyond Landlord’s reasonable control.

          (b) Notwithstanding the foregoing, if (i) the damage is of a nature or extent that, in
Landlord’s reasonable judgment (to be communicated to Tenant within sixty (60) days from the date
of the casualty), the repair and restoration work would require more than 210 consecutive days to
complete after the casualty (assuming normal work crews not engaged in overtime), or (ii) if more
than thirty (30%) percent of the total area of the Building is extensively damaged, or (iii) the
casualty occurs in the last Lease Year of the Term and Tenant has not exercised a renewal right,
either party may terminate this Lease and all the unaccrued obligations of the parties hereto, by
sending written notice of such termination to the other within ten (10) days of Tenant’s receipt of
the notice from Landlord described above. Such notice is to specify a termination date no less
than fifteen (15) days after its transmission.

          (c) If the insurance proceeds received by Landlord as dictated by the terms and conditions of
any financing then existing on the Building, (excluding any rent insurance proceeds) are required
to be applied on account of any mortgage which encumbers any part of the Premises or Building, or
if the nature of loss is not, or would not be, covered by Landlord’s property insurance coverage
required under Article 15 of this Lease, Landlord may elect either to (i) repair the damage as
above provided notwithstanding such fact or (ii) terminate this Lease by giving Tenant notice of
Landlord’s election within thirty (30) days from the date of the casualty.

          (d) If Landlord has not completed restoration of the Premises within 210 days from the date of
casualty (subject to delay due to weather conditions, shortages of labor or materials or other
reasons beyond Landlord’s control), Tenant may terminate this Lease by written notice to Landlord
within thirty (30) business days following the expiration of such 210 day period (as extended for
reasons beyond Landlord’s control as provided above) unless, within thirty (30) business days
following receipt of such notice, Landlord has substantially completed such restoration and
delivered the Premises to Tenant for occupancy. Notwithstanding the foregoing, if the aforesaid
casualty results from the gross negligence or willful misconduct of Tenant, Tenant shall
not have the right to terminate this Lease if Landlord is willing to rebuild and restore
the Premises.

          (e) In the event of damage or destruction to the Premises or any part thereof, Tenant’s
obligation to pay Fixed Rent and Additional Rent shall be equitably adjusted or abated.

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     19. Subordination; Mortgagee Rights.

          (a) This Lease shall be subject and subordinate at all times to the lien of any existing
mortgages encumbering the Premises, Building and/or Project and land of which they are a part
without the necessity of any further instrument or act on Tenant’s part to effectuate such
subordination. This Lease shall also be subject and subordinate at all times to the lien of any
mortgages hereafter placed upon the Premises, Building and/or Project and land of which they are a
part, provided the holder of each such mortgage executes and delivers to Tenant a subordination,
attornment and nondisturbance agreement (“Nondisturbance Agreement”) from Landlord’s Mortgagee, on
each such mortgagee’s standard form, which provides, inter alia, that the leasehold
estate granted to Tenant under this Lease will not be terminated or disturbed by reason of the
foreclosure of the mortgage held by Landlord’s Mortgagee, so long as Tenant shall not be in default
under this Lease and shall pay all sums due under this Lease without offsets or defenses thereto
and shall fully perform and comply with all of the terms, covenants and conditions of this Lease on
the part of Tenant to be performed and/or complied with, and if a mortgagee or its respective
successor or assigns shall enter into and lawfully become possessed of the Premises covered by this
Lease and shall succeed to the rights and prospective obligations of Landlord hereunder and shall
recognize Tenant’s tenancy hereunder, Tenant will attorn to the successor as its landlord under
this Lease and, upon the request of such successor landlord, Tenant will execute and deliver an
attornment agreement in favor of the successor landlord. Tenant shall execute and deliver upon
demand such further instrument or instruments evidencing any such subordination of this Lease to
the lien of any such mortgage and any such further instrument or instruments of attornment as shall
be desired by any mortgagee or proposed mortgagee or by any other person. Notwithstanding the
foregoing, any mortgagee may at any time subordinate its mortgage to this Lease, without Tenant’s
consent, by notice in writing to Tenant, and thereupon this Lease shall be deemed prior to such
mortgage without regard to their respective dates of execution and delivery and in that event such
mortgagee shall have the same rights with respect to this Lease as though it had been executed
prior to the execution and delivery of the mortgage.

          (b) If Landlord shall be or is alleged to be in default of any of its obligations owing to
Tenant under this Lease, Tenant shall give the holder of any mortgage (collectively the
"Mortgagee”) now or hereafter placed upon the Premises, Building and/or Project, notice by
overnight mail of any such default which Tenant shall have served upon Landlord, provided that
prior thereto Tenant has been notified in writing (by way of Notice of Assignment of Rents and/or
Leases or otherwise in writing to Tenant) of the name and addresses of any such Mortgagee. Tenant
shall not be entitled to exercise any right or remedy as there may be because of any default by
Landlord without having given such notice to the Mortgagee. If Landlord shall fail to cure such
default the Mortgagee shall have thirty (30) additional days (measured from the date of the
Mortgagee’s receipt of such notice from Tenant) within which to cure such default, provided that if
such default be such that the same could not be cured within such period and Mortgagee promptly
commenced and is diligently pursuing the remedies necessary to effectuate the cure (including but
not limited to foreclosure proceedings if necessary to effectuate the cure), then Tenant shall not
exercise any right or remedy as there may be arising because of Landlord’s default, including but
not limited to, termination of this Lease as may be expressly provided for herein or available to
Tenant as a matter of law, if the Mortgagee either has cured the default

- 26 -

 

within such time periods, or as the case may be, has initiated the cure of same within such
period and is diligently pursuing the cure of same as aforesaid.

          (c) Any provision of this Section to the contrary notwithstanding, Landlord will obtain a
Nondisturbance Agreement for Tenant from Landlord’s current lender in the form of Exhibit
F, and will use commercially reasonable efforts to obtain a subordination, non-disturbance and
attornment agreement from all future mortgagees in the standard form customarily employed by such
mortgagee but subject to any Lease-specific revisions that such mortgagee might require.
Landlord’s obligation to use commercially reasonable efforts shall not include, among other things,
any obligation of Landlord to pay any amount to any current or future lender for such lender’s
execution and delivery of a subordination, non-disturbance agreement (unless Tenant so agrees to
reimburse Landlord for any such expense) nor shall such obligation include any obligation of
Landlord to agree to any change in the terms of the mortgage or deed of trust or other loan
documents.

     20. Condemnation.

          (a) If (i) more than twenty (20%) percent of the floor area of the Premises is taken or
condemned for a public or quasi-public use (a sale in lieu of condemnation to be deemed a taking or
condemnation for purposes of this Lease), or (ii) as a result of such taking Tenant does not have
elevator access to the Premises, and if, in Landlord’s reasonable opinion, elevator access to the
Premises cannot be restored within 210 consecutive days after the date of such taking, this Lease
shall, at either party’s option, terminate as of the date title to the condemned real estate vests
in the condemnor, and the Fixed Rent and Additional Rent herein reserved shall be apportioned and
paid in full by Tenant to Landlord to that date and all rent prepaid for period beyond that date
shall forthwith be repaid by Landlord to Tenant and neither party shall thereafter have any
liability hereunder.

          (b) If less than twenty (20%) percent of the floor area of the Premises is taken or if neither
Landlord nor Tenant have elected to terminate this Lease pursuant to the preceding sentence,
Landlord shall do such work as may be reasonably necessary to restore the portion of the Premises
not taken to tenantable condition for Tenant’s uses, but shall not be required to expend more than
the net award Landlord reasonably expects to be available for restoration of the Premises. If
Landlord determines that the damages available for restoration of the Building and/or Project will
not be sufficient to pay the cost of restoration, or if the condemnation damage award is required
to be applied on account of any mortgage which encumbers any part of the Premises, Building and/or
Project, Landlord may terminate this Lease by giving Tenant thirty (30) days prior notice
specifying the termination date.

          (c) If this Lease is not terminated after any such taking or condemnation, the Fixed Rent and
the Additional Rent shall be equitably reduced in proportion to the area of the Premises which has
been taken for the balance of the Term.

          (d) If a part or all of the Premises shall be taken or condemned, all compensation awarded
upon such condemnation or taking shall go to Landlord and Tenant shall have no claim thereto other
than Tenant’s damages associated with moving, storage and relocation; and Tenant hereby expressly
waives, relinquishes and releases to Landlord any claim

- 27 -

 

for damages or other compensation to which Tenant might otherwise be entitled because of any
such taking or limitation of the leasehold estate hereby created, and irrevocably assigns and
transfers to Landlord any right to compensation of all or a part of the Premises or the leasehold
estate. Notwithstanding the foregoing, Tenant may file for a separate award for the unamortized
cost of any leasehold improvements purchased at Tenant’s sole expense provided the same does not
diminish Landlord’s award.

     21. Estoppel. Each party shall, within ten (10) business days after the other
party’s written request, execute, acknowledge and deliver to the other party a written instrument
in recordable form certifying all information reasonably requested, including but not limited to,
the following: that this Lease is unmodified and in full force and effect (or if there have been
modifications, that it is in full force and effect as modified and stating the modifications), the
Commencement Date, the expiration date of this Lease, the square footage of the Premises, the
rental rates applicable to the Premises, the dates to which Rent, Additional Rent, and other
charges have been paid in advance, if any, and stating whether or not to the best knowledge of the
party signing such certificate, the requesting party is in default in the performance of any
covenant, agreement or condition contained in this Lease and, if so, specifying each such default
of which the signer may have knowledge. It is intended that any such certification and statement
delivered pursuant to this Article may be relied upon by any prospective purchaser of the Project
or any mortgagee thereof or any assignee of Landlord’s interest in this Lease or of any mortgage
upon the fee of the Premises or any part thereof.

     22. Default.

          (a) Event of Default. An “Event of Default” shall be deemed to have occurred if:

               (i) Tenant fails to pay any installment of Fixed Rent or any amount of Additional Rent when
due; provided, however, Landlord shall provide written notice of the failure to pay such Rent and
Tenant shall have a five (5) business day grace period from its receipt of such Landlord’s notice
(facsimile receipt being deemed to be notice hereunder) within which to pay such Rent without
creating a default hereunder. Except as otherwise expressly provided therein, the late fee set
forth in Article 5 hereof shall be due on the first day after such payment is due
irrespective of the foregoing notice and grace period. No additional notice shall be required
thereafter and Landlord shall be entitled to immediately exercise its remedies hereunder if payment
is not received during the grace period,

               (ii) Tenant abandons the Premises,

               (iii) Tenant fails to bond over a construction or mechanics lien within the time period set
forth in Article 11,

               (iv) Tenant fails to observe or perform any of Tenant’s other non-monetary agreements or
obligations herein contained within thirty (30) days after written notice specifying the default,
or the expiration of such additional time period as is reasonably necessary to cure such default,
provided Tenant immediately commences and thereafter proceeds with all due diligence and in good
faith to cure such default,

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               (v) Tenant makes any assignment for the benefit of creditors,

               (vi) a petition is filed or any proceeding is commenced against Tenant or by Tenant under any
federal or state bankruptcy or insolvency law and such petition or proceeding is not dismissed
within sixty (60) days,

               (vii) a receiver or other official is appointed for Tenant or for a substantial part of
Tenant’s assets or for Tenant’s interests in this Lease,

               (viii) any attachment or execution against a substantial part of Tenant’s assets or of
Tenant’s interests in this Lease remains unstayed or undismissed for a period of more than twenty
(20) days, or

               (ix) a substantial part of Tenant’s assets or of Tenant’s interest in this Lease is taken by
legal process in any action against Tenant.

          (b) Remedies. Following the occurrence of an Event of Default, in addition to all
other rights and remedies available at law or in equity, Landlord shall have the following rights
and remedies:

               (i) Acceleration of Rent. By notice to Tenant, Landlord may accelerate all Fixed Rent
and all expense installments due hereunder and otherwise payable in installments over the remainder
of the Term, and, at Landlord’s option, any other Additional Rent to the extent that such
Additional Rent can be determined and calculated to a fixed sum; and the amount of accelerated rent
to the termination date, plus all costs incurred by Landlord relating to Tenant’s breach of the
Lease, without further notice or demand for payment, shall be due and payable by Tenant within five
(5) days after Landlord has so notified Tenant, such amount collected from Tenant shall be
discounted to present value using an interest rate of six percent (6%) per annum, minus the fair
market rental value for the balance of the Term, determined as of the time of such default,
discounted to present value at a rate of six percent (6%) per annum. Additional Rent which has not
been included, in whole or in part, in accelerated rent, shall be due and payable by Tenant during
the remainder of the Term, in the amounts and at the times otherwise provided for in this Lease.

               Notwithstanding the foregoing or the application of any rule of law based on election of
remedies or otherwise, if Tenant fails to pay the accelerated rent in full when due, Landlord
thereafter shall have the right by notice to Tenant, (i) to terminate Tenant’s further right to
possession of the Premises and (ii) to terminate this Lease under subparagraph (b) below; and if
Tenant shall have paid part but not all of the accelerated rent, the portion thereof attributable
to the period equivalent to the part of the Term remaining after Landlord’s termination of
possession or termination of this Lease shall be applied by Landlord against Tenant’s obligations
owing to Landlord, as determined by the applicable provisions of subparagraphs (c) and (d) below.

               (ii) Termination of Lease. By notice to Tenant, Landlord may terminate this Lease as
of a date specified in the notice of termination and in such case, Tenant’s rights, including any
based on any option to renew, to the possession and use of the Premises shall end absolutely as of
the termination date; and this Lease shall also terminate in all respects

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except for the provisions hereof regarding Landlord’s damages and Tenant’s liabilities arising
prior to, out of and following the Event of Default and the ensuing termination.

               Following such termination and the notice of same provided above (as well as upon any other
termination of this Lease by expiration of the Term or otherwise) Landlord immediately may recover
possession of the Premises; and to that end, Landlord may enter the Premises and take possession,
without the necessity of giving Tenant any notice to quit or any other further notice, with legal
process, and in so doing Landlord may remove Tenant’s property (including any improvements or
additions to the Premises which Tenant made, unless made with Landlord’s consent which expressly
permitted Tenant to not remove the same upon expiration of the Term), as well as the property of
others as may be in the Premises, and make disposition thereof in such manner as Landlord may deem
to be commercially reasonable and necessary under the circumstances.

          (c) Tenant’s Continuing Obligations/Landlord’s Reletting Rights.

               (i) Unless and until Landlord shall have terminated this Lease under subparagraph (b) above,
Tenant shall remain fully liable and responsible to perform all of the covenants and to observe all
the conditions of this Lease throughout the remainder of the Term to the early termination date;
and, in addition, Tenant shall pay to Landlord, upon demand and as Additional Rent, the total sum
of all costs, losses, damages and expenses, including reasonable attorneys’ fees, as Landlord
incurs because of any Event of Default having occurred.

               (ii) If Landlord either terminates Tenant’s right to possession without terminating this Lease
or terminates this Lease and Tenant’s leasehold estate as above provided, then, subject to the
provisions below, Landlord shall have the unrestricted right to relet the Premises or any part(s)
thereof to such tenant(s) on such provisions and for such period(s) as Landlord may deem
appropriate. If Landlord relets the Premises after an Event of Default, the costs recovered from
Tenant shall be reallocated to take into consideration any additional rent which Landlord receives
from the new tenant which is in excess to that which was owed by Tenant.

          (d) Landlord’s Damages.

               (i) The damages which Landlord shall be entitled to recover from Tenant upon an Event of
Default shall be the sum of:

                    (A) all Fixed Rent and Additional Rent accrued and unpaid as of the termination date; and

                    (B) (i) all costs and expenses incurred by Landlord in recovering possession of the Premises,
including removal and storage of Tenant’s property, (ii) the costs and expenses of restoring the
Premises to the condition in which the same were to have been surrendered by Tenant as of the
expiration of the Term, and (iii) the costs of reletting commissions; and

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                    (C) all Fixed Rent and Additional Rent (to the extent that the amount(s) of Additional Rent
has been then determined) otherwise payable by Tenant over the remainder of the Term as reduced to
present value.

Less deducting from the total determined under subparagraphs (A), (B) and (C) all Fixed Rent and
all other Additional Rent to the extent determinable as aforesaid (to the extent that like charges
would have been payable by Tenant) which Landlord receives from other tenant(s) by reason of the
leasing of the Premises or part during or attributable to any period falling within the otherwise
remainder of the Term.

               (ii) The damage sums payable by Tenant under the preceding provisions of this subparagraph (d)
shall be payable on demand from time to time as the amounts are determined; and if from Landlord’s
subsequent receipt of rent as aforesaid from reletting, there be any excess payment(s) by Tenant by
reason of the crediting of such rent thereafter received, the excess payment(s) shall be refunded
by Landlord to Tenant, without interest.

               (iii) Landlord may enforce and protect the rights of Landlord hereunder by a suit or suits in
equity or at law for the specific performance of any covenant or agreement contained herein, and
for the enforcement of any other appropriate legal or equitable remedy, including, without
limitation, injunctive relief, and for recovery of consequential damages and all moneys due or to
become due from Tenant under any of the provisions of this Lease.

          (e) Landlord’s Right to Cure. Without limiting the generality of the foregoing, if
Tenant shall be in default beyond any applicable notice and cure period in the performance of any
of its obligations hereunder, Landlord, without being required to give Tenant any notice or
opportunity to cure, may (but shall not be obligated to do so), in addition to any other rights it
may have in law or in equity, cure such default on behalf of Tenant, and Tenant shall reimburse
Landlord upon demand for any sums paid or costs incurred by Landlord in curing such default,
including reasonable attorneys’ fees and other legal expenses, together with interest at the
Default Rate from the dates of Landlord’s incurring of costs or expenses.

               Tenant hereby waives any right of redemption of the Premises or the Lease following any Event
of Default, and any right to a notice to quit whether or not the Term of this Lease has expired.

          (f) Interest on Damage Amounts. Any sums payable by Tenant hereunder, which are not
paid after the same shall be due, shall bear interest from that day until paid at the rate of two
(2%) percent over the then Prime Rate as published daily under the heading “Money Rates” in The
Wall Street Journal, unless such rate be usurious as applied to Tenant, in which case the
highest permitted legal rate shall apply (the “Default Rate”).

          (g) Landlord’s Statutory Rights. Landlord shall have all rights and remedies now or
hereafter existing at law or in equity with respect to the enforcement of Tenant’s obligations
hereunder and the recovery of the Premises. No right or remedy herein conferred upon or reserved
to Landlord shall be exclusive of any other right or remedy, but shall be cumulative and in
addition to all other rights and remedies given hereunder or now or hereafter existing at law.
Landlord shall be entitled to injunctive relief in case of the violation, or

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attempted or threatened violation, of any covenant, agreement, condition or provision of this
Lease, or to a decree compelling performance of any covenant, agreement, condition or provision of
this Lease.

          (h) Remedies Not Limited. Nothing herein contained shall limit or prejudice the right
of Landlord to exercise any or all rights and remedies available to Landlord by reason of default
or to prove for and obtain in proceedings under any bankruptcy or insolvency laws, an amount equal
to the maximum allowed by any law in effect at the time when, and governing the proceedings in
which, the damages are to be proved, whether or not the amount be greater, equal to, or less than
the amount of the loss or damage referred to above.

          (i) No Waiver by Landlord. No delay or forbearance by Landlord in exercising any
right or remedy hereunder, or Landlord’s undertaking or performing any act or matter which is not
expressly required to be undertaken by Landlord shall be construed, respectively, to be a waiver of
Landlord’s rights or to represent any agreement by Landlord to undertake or perform such act or
matter thereafter. Waiver by Landlord of any breach by Tenant of any covenant or condition herein
contained (which waiver shall be effective only if so expressed in writing by Landlord) or failure
by Landlord to exercise any right or remedy in respect of any such breach shall not constitute a
waiver or relinquishment for the future of Landlord’s right to have any such covenant or condition
duly performed or observed by Tenant, or of Landlord’s rights arising because of any subsequent
breach of any such covenant or condition nor bar any right or remedy of Landlord in respect of such
breach or any subsequent breach. Landlord’s receipt and acceptance of any payment from Tenant
which is tendered not in conformity with the provisions of this Lease or following an Event of
Default (regardless of any endorsement or notation on any check or any statement in any letter
accompanying any payment) shall not operate as an accord and satisfaction or a waiver of the right
of Landlord to recover any payments then owing by Tenant which are not paid in full, or act as a
bar to the termination of this Lease and the recovery of the Premises because of Tenant’s previous
default.

          (j) Landlord Default. If Landlord shall be in default in the performance of any of
its obligations under this Lease which default continues for a period of more than thirty (30)
business days after receipt of written notice from Tenant specifying such default, or if such
default is of a nature to require more than thirty (30) business days for remedy and continues
beyond the time reasonably necessary to cure (and Landlord has not undertaken procedures to cure
the default within such thirty (30) business day period and diligently pursued such efforts to
complete such cure), Tenant may, in addition to any other remedy available at law or in equity,
upon at least five (5) business days prior written notice, incur any reasonably necessary expense
to perform the obligation of Landlord specified in such notice and deduct such expense from the
Fixed Rent.

     23. Landlord’s Lien. [Intentionally Omitted]

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     24. Surrender. Tenant shall, at the expiration of the Term, promptly quit and surrender
the Premises in good order and condition and in conformity with the applicable provisions of this
Lease, excepting only reasonable wear and tear and damage by fire or other insurable casualty and
damage by condemnation. Tenant shall have no right to hold over beyond the expiration of the Term
and if Tenant shall fail to deliver possession of the Premises as herein provided, such occupancy
shall constitute a tenancy at sufferance. During any period of occupancy beyond the expiration of
the Term the amount of rent owed to Landlord by Tenant shall automatically become one hundred fifty
percent (150%) the sum of the Rent as those sums are at that time calculated under the provisions
of the Lease. The acceptance of rent by Landlord or the failure or delay of Landlord in notifying
or evicting Tenant following the expiration or sooner termination of the Term shall not create any
tenancy rights in Tenant and any such payments by Tenant may be applied by Landlord against its
costs and expenses, including reasonable attorneys’ fees, incurred by Landlord as a result of such
holdover.

     25. Rules and Regulations. During the Term, Tenant and its employees, agents,
invitees and licenses shall comply with all rules and regulations specified on Exhibit C
attached hereto, together with all reasonable Rules and Regulations as Landlord may from time to
time promulgate provided they do not conflict with the provisions of this Lease. In case of any
conflict or inconsistency between the provisions of this Lease and any Rules and Regulations, the
provisions of this Lease shall control. Landlord shall have no duty or obligation to enforce any
Rule and Regulation, or any term, covenant or condition of any other lease, against any other
tenant, and Landlord’s failure or refusal to enforce any Rule or Regulation or any term, covenant
of condition of any other lease against any other tenant shall be without liability of Landlord to
Tenant. However, if Landlord does enforce Rules or Regulations, Landlord shall endeavor to enforce
same equally in a non-discriminatory manner.

     26. Governmental Regulations.

          (a) Tenant shall, in the use and occupancy of the Premises and the conduct of Tenant’s
business or profession therein, at all times comply with all applicable laws, ordinances, orders,
notices, rules and regulations of the federal, state and municipal governments, or any of their
departments and the regulations of the insurers of the Premises, Building and/or Project.

          (b) Without limiting the generality of the foregoing, Tenant shall (i) obtain, at Tenant’s
expense, before engaging in Tenant’s business or profession within the Premises, all necessary
licenses and permits including (but not limited to) state and local business licenses or permits,
and (ii) remain in compliance with and keep in full force and effect at all times all licenses,
consents and permits necessary for the lawful conduct of Tenant’s business or profession at the
Premises. Tenant shall pay all personal property taxes, income taxes and other taxes, assessments,
duties, impositions and similar charges which are or may be assessed, levied or imposed upon Tenant
and which, if not paid, could be liened against the Premises or against Tenant’s property therein
or against Tenant’s leasehold estate.

          (c) Landlord shall be responsible for compliance with Title III of the Americans with
Disabilities Act of l990, 42 U.S.C. Sec. 12181 et seq. and its regulations (collectively, the
"ADA”) (i) as to the design and construction of all common areas, and (ii) with respect to the
initial design and construction by Landlord of Landlord’s Work (as defined in

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Article 4
hereof). Except as set forth above in the initial sentence hereto, Tenant shall be responsible for
compliance with the ADA in all other respects concerning the use and occupancy of the Premises,
which compliance shall include, without limitation (i) provision for full and equal enjoyment of
the goods, services, facilities, privileges, advantages or accommodations of the Premises as
contemplated by and to the extent required by the ADA, (ii) compliance relating to requirements
under the ADA or amendments thereto arising after the date of this Lease and (iii) compliance
relating to the design, layout, renovation, redecorating, refurbishment, alteration, or improvement
to the Premises made or requested by Tenant at any time following completion of the Landlord’s
Work.

     To the extent that Tenant is not required under the terms of this Lease to comply therewith,
Landlord shall indemnify Tenant against any claim or liability arising from the failure of the
Project (other than areas of the Project leased to tenants) to comply with all applicable laws,
rules, regulations and codes including, without limitation, Title III of The Americans with
Disabilities Act of 1990, as amended from time to time. The foregoing notwithstanding, to the
extent that Landlord incurs any costs in causing the Project or any portion thereof to comply with
any applicable laws, rules, regulations or codes and such costs qualify as Operating Expenses, such
costs shall be included as Operating Expenses under Article 6.

     27. Notices. Wherever in this Lease it shall be required or permitted that notice or
demand be given or served by either party to this Lease to or on the other party, such notice or
demand shall be deemed to have been duly given or served if in writing and either: (i) personally
served; (ii) delivered by pre-paid nationally recognized overnight courier service (e.g. Federal
Express) with evidence of receipt required for delivery; (iii) forwarded by Registered or Certified
mail, return receipt requested, postage prepaid; (iv) facsimile with a copy mailed by first class
United States mail or (v) e-mailed with evidence of receipt and delivery of a copy of the notice by
first class mail; in all such cases addressed to the parties at the addresses set forth in
Article 1(n) hereof. Each such notice shall be deemed to have been given to or served upon
the party to which addressed on the date the same is delivered or delivery is refused. Either
party hereto may change its address to which said notice shall be delivered or mailed by giving
written notice of such change to the other party hereto, as herein provided.

     28. Broker. Landlord and Tenant each represents and warrants to the other that
such party has had no dealings, negotiations or consultations with respect to the Premises or this
transaction with any broker or finder other than the Broker; and that otherwise no broker or finder
called the Premises to Tenant’s attention for lease or took any part in any dealings, negotiations
or consultations with respect to the Premises or this Lease. Each party shall indemnify and hold
the other harmless from and against all liability, cost and expense, including attorneys’ fees and
court costs, arising out of any misrepresentation or breach of warranty under this Article.
Landlord shall pay Broker’s commission pursuant to the terms of a separate agreement between
Landlord and Broker.

     29. Change of Building/Project Name. Landlord reserves the right at any time and from
time to time to change the name and/or address by which the Building and/or Project is designated
(provided that Landlord shall reimburse Tenant for any reasonable costs to Tenant associated
therewith, including the cost of new stationery and business materials not in excess of $1,500 in
the aggregate).

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     30. Landlord’s Liability. Landlord’s obligations hereunder shall be binding upon
Landlord only for the period of time that Landlord is in ownership of the Building; and, upon
termination of that ownership, Tenant, except as to any obligations which are then due and owing,
shall look solely to Landlord’s successor in interest in the Building for the satisfaction of each
and every obligation of Landlord hereunder. Landlord shall have no personal liability under any of
the terms, conditions or covenants of this Lease and Tenant shall look solely to the equity of
Landlord in the Building of which the Premises form a part for the satisfaction of any claim,
remedy or cause of action accruing to Tenant as a result of the breach of any section of this Lease
by Landlord. In addition to the foregoing, no recourse shall be had for an obligation of Landlord
hereunder, or for any claim based thereon or otherwise in respect thereof, against any past,
present or future trustee, member, partner, shareholder, officer, director, partner, agent or
employee of Landlord, whether by virtue of any statute or rule of law, or by the enforcement of any
assessment or penalty or otherwise, all such other liability being expressly waived and released by
Tenant with respect to the above-named individuals and entities.

     31. Authority. Tenant represents and warrants to Landlord that (a) Tenant is duly
organized, validly existing and legally authorized to do business in the State of Maryland, and (b)
the persons executing this Lease are duly authorized to execute and deliver this Lease on behalf of
Tenant. Landlord represents and warrants to Tenant that: (a) Landlord is the fee simple owner of
the Building and the Project; (b) Landlord has the authority to enter into this Lease and (c) the
person executing this Lease is duly authorized to execute and deliver this Lease on behalf of
Landlord.

     32. No Offer. Landlord’s submission of the Lease does not constitute a reservation
of or option for the Premises or of any other space within the Building or in other buildings owned
or managed by Landlord or its affiliates. This Lease shall become effective as a Lease only upon
the execution and legal delivery thereof by both parties hereto.

     33. Renewal. Provided Tenant is not in default at the time of exercise, Tenant has
not assigned this Lease or then has under sublease more than thirty percent (30%) of the Premises
and the Lease is in full force and effect, Tenant may renew this Lease for one (1) term of five (5)
years beyond the end of the initial Term (the “Renewal Term”). Tenant shall furnish written notice
of intent to renew no more than eighteen (18) months and no less than twelve (12) months prior to
the expiration of the initial Term, failing which, such renewal right shall be deemed waived; time
being of the essence. The terms and conditions of this Lease during the Renewal Term shall remain
unchanged except that the annual Fixed Rent for the Renewal Term shall be the Fair Market Rent (as
such term is hereinafter defined). All factors regarding Additional Rent shall remain unchanged,
and no Tenant Allowance shall be included in the absence of further agreement by the parties.
Anything herein contained to the contrary notwithstanding, Tenant shall have no right to renew the
term hereof other than or beyond the one (1) consecutive five (5) year term hereinabove described.
It shall be a condition of such Renewal Term that Landlord and Tenant shall have negotiated in good
faith and executed, not less than nine (9) months prior to the expiration of the then expiring term
hereof, an appropriate amendment to this Lease, in form and content satisfactory to each of them,
memorializing the extension of the term hereof for the next ensuing Renewal Term.

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     For purposes of this Lease, “Fair Market Rent” shall mean the base rent, for comparable space,
net of all free or reduced rent periods, work letters, cash allowances, fit-out periods and other
tenant inducement concessions however denominated except as hereinafter provided. In determining
the Fair Market Rent, Landlord, Tenant and any appraiser or broker shall take into account
differences in applicable measurement and the loss factors, applicable lengths of lease term,
differences in size of the space demised, the location of the Building and comparable buildings,
amenities in the Building and comparable buildings, the ages of the Building and comparable
buildings, differences in base years or stop amounts for operating expenses and tax escalations and
other factors normally taken into account in determining Fair Market Rent. The Fair Market Rent
shall reflect the level of improvement made or to be made by Landlord to the space and the
Operating Expenses and Taxes under this Lease. Additionally, tenant improvement allowances, free
rent periods and other economic concessions then being provided to similar extending tenants by
landlords of comparable buildings in the competitive market area of the Building will, at
Landlord’s option, either be provided directly to Tenant or the value of such concessions will not
be provided directly to Tenant but the Fair Market Rate will be reduced by the economic equivalent
thereof to reflect the fact that such concessions were not provided directly to Tenant. If
Landlord and Tenant cannot agree on the Fair Market Rent, the Fair Market Rent shall be established
by the following procedure: (1) Tenant and Landlord shall agree on a single MAI certified appraiser
or broker who shall have a minimum of ten (10) years experience in real estate leasing in the
market in which the Premises is located, (2) Landlord and Tenant shall each notify the other (but
not the appraiser or broker), of its determination of such Fair Market Rent and the reasons
therefor, (3) during the next seven (7) days both Landlord and Tenant shall prepare a written
critique of the other’s determination and shall deliver it to the other party, (4) on the tenth
(10th) day following delivery of the critiques to each other, Landlord’s and Tenant’s
determinations and critiques (as originally submitted to the other party, with no modifications
whatsoever) shall be submitted to the appraiser or broker, who shall decide whether Landlord’s or
Tenant’s determination of Fair Market Rent is more correct. The determinations so chosen shall be
the Fair Market Rent. The appraiser or broker shall not be empowered to choose any number other
than the Landlord’s or Tenant’s. The fees of the appraiser or broker shall be paid by the
non-prevailing party.

     34. Right of Notification. If, at any time beginning on the Commencement Date,
office space on the third (3rd) floor of the Building contiguous with the Premises
becomes or is reasonably anticipated by Landlord to become available for lease prior to the last
eighteen (18) months of the Term (the “Available Space”), Landlord shall provide Tenant with a
written courtesy notice with together with the Fixed Rent and any leasing concessions Landlord
chooses to propose (the “Courtesy Notice”) setting forth the anticipated availability date of the
Available Space. The Courtesy Notice shall be delivered to Tenant not more than twelve (12) months
in advance of the anticipated availability date of the Available Space. Upon Tenant’s receipt of
the Courtesy Notice, Tenant may contact Landlord to discuss the possibility of leasing the
Available Space; provided, however, that this provision shall in no way provided Tenant with any
legal right to lease the Available Space. Any provision of this Section to the contrary
notwithstanding, Landlord shall have no obligation to provide tenant with a Courtesy Notice until
the lease of such the Available Space in existence on the date of this Lease has expired
(including, without limitation, the expiration of any lease term extension period(s), regardless of
whether the extension right or agreement is contained in such
lease or is agreed to at any time by Landlord and the tenant under such lease or otherwise) or
been terminated.

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     35. Termination. Tenant shall have a one-time right to terminate this Lease, at the
end of the eighty-fourth (84th) month of the Term, provided Tenant (i) is not then in
default beyond any applicable notice and cure period under this Lease, (ii) gives Landlord not less
than nine (9) months prior written notice, and (iii) pays to Landlord, at the time of said notice,
an amount equal to the unamortized cost of the transaction, amortized over the initial Term of the
Lease on a straight-line basis at eight percent (8%) per annum interest (“Termination Payment”).
The unamortized cost will be calculated for the following specific costs, brokerage fees and
contractor’s invoices to complete Landlord’s Work. Failure to provide written notice and payment
within the prescribed time frame will be considered by Landlord, without the necessity of
additional notice, as a waiver of this right to terminate. Tenant acknowledges and agrees that the
Termination Payment is not a penalty and is fair and reasonable compensation to Landlord for the
loss of expected rentals from Tenant over the remainder of the scheduled term.

     36. Parking. Tenant shall be entitled to parking permits for the Building’s parking
facilities at a ratio of 3.4 per 1,000 rentable square feet of the Premises (including three (3)
reserved garage spaces), at no fee during the initial Term. Landlord shall not be obligated to
provide Tenant with any additional parking permits. If Tenant fails to observe the Rules and
Regulations with respect to the Building’s parking facilities, then Landlord, at its option, after
providing Tenant with an appropriate notice and time period within which to cure any such violation
(which notice and time period shall be reasonably determined by Landlord), shall have the right to
terminate Tenant’s parking permit(s) for the violating parking space(s), without legal process, and
to remove Tenant, Tenant’s vehicles and those of its employees, licensees or invitees and all of
Tenant’s personal property from the Building’s parking facilities. Landlord reserves the right to
require that all or a portion of Tenant’s parking permits (except for the reserved parking spaces)
be for valet, structured, surface and/or such other parking arrangements as Landlord shall from
time to time determine.

     37. Financial Information. Any time during the Term (but not more than once during
any twelve (12) month period unless a default has occurred under this Lease or Landlord has a
reasonable basis to suspect that Tenant has suffered a material adverse change in its financial
position) upon not less than thirty (30) days prior written request from Landlord, Tenant shall
deliver to Landlord: (i) a current, accurate, complete and detailed balance sheet of Tenant (dated
no more than thirty (30) days prior to such delivery), a profit and loss statement, a cash flow
summary and all relevant accounting footnotes, all prepared in accordance with generally accepted
accounting principles consistently applied and certified by the Chief Financial Officer of Tenant
to be a fair and true presentation of Tenant’s current financial position; (ii) a current,
accurate, complete and detailed financial statements of Tenant audited by an independent certified
public accountant for the last applicable calendar year; and (iii) current bank references for
Tenant. Tenant’s failure to strictly comply with this Article shall constitute a material Default
by Tenant under this Lease. Landlord shall keep all information provided hereunder strictly
confidential.

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     38. Roof Rights. So long as it (i) does not impact Landlord’s roof warranty and (ii)
complies with all applicable laws, rules and regulations, Tenant, at Tenant’s sole cost and
expense, shall have access to the roof of the Building in designated areas mutually agreed upon to
install up to four (4) antennae, each with a diameter not in excess of twenty-four (24”) inches and
equipment related thereto (the “Roof Equipment”). Notwithstanding the foregoing, all such Roof
Equipment shall be for the sole benefit of Tenant and Landlord, shall relate specifically to
Tenant’s use of the Premises, and shall not be used as a switching station, amplification station
or by other tenants or third parties. Tenant shall make a request for approval of the Roof
Equipment hereunder by submission of specific plans and specifications for the work to be performed
by Tenant. Landlord shall respond in writing within fifteen (15) business days from receipt of the
same, advising Tenant of approved contractors and those portions of the work that are acceptable
and disapproving those portions of the work that are, in Landlord’s judgment, reasonably exercised,
unacceptable and with respect to the plans, specifying in detail the nature of Landlord’s
objection. Tenant shall be solely responsible for all damages caused by its Roof Equipment, for
the removal of all Roof Equipment and the restoration of the roof upon the expiration or early
termination of this Lease unless directed in writing by Landlord otherwise. Landlord shall be
named as an additional insured on all Tenant insurance relating to the Roof Equipment. All
installation, repair, replacement and modification of the Roof Equipment shall be coordinated with
Landlord, shall only use those approved contractors and shall be in accordance with the Rules and
Regulations set forth herein.

     39. Miscellaneous Provisions.

          (a) Successors. The respective rights and obligations provided in this Lease shall
bind and inure to the benefit of the parties hereto, their successors and assigns; provided,
however, that no rights shall inure to the benefit of any successors or assigns of Tenant unless
Landlord’s written consent for the transfer to such successor and/or assignee has first been
obtained as provided in, Article 12 hereof (to the extent required thereunder).

          (b) Governing Law. This Lease shall be construed, governed and enforced in accordance
with the laws of the State of Maryland, without regard to principles relating to conflicts of law.

          (c) Severability. If any provisions of this Lease shall be held to be invalid, void
or unenforceable, the remaining provisions hereof shall in no way be affected or impaired and such
remaining provisions shall remain in full force and effect.

          (d) Captions. Marginal captions, titles or exhibits and riders and the table of
contents in this Lease are for convenience and reference only, and are in no way to be construed as
defining, limiting or modifying the scope or intent of the various provisions of this Lease.

          (e) Gender. As used in this Lease, the word “person” shall mean and include, where
appropriate, an individual, corporation, partnership or other entity; the plural shall be
substituted for the singular, and the singular for the plural, where appropriate; and the words of
any gender shall mean to include any other gender.

- 38 -

 

          (f) Entire Agreement. This Lease, including the Exhibits and any Riders hereto (which
are hereby incorporated by this reference, except that in the event of any conflict between the
printed portions of this Lease and any Exhibits or Riders, the term of such Exhibits or Riders
shall control), supersedes any prior discussions, proposals, negotiations and discussions between
the parties and the Lease contains all the agreements, conditions, understandings, representations
and warranties made between the parties hereto with respect to the subject matter hereof, and may
not be modified orally or in any manner other than by an agreement in writing signed by both
parties hereto or their respective successors in interest. No negotiations, correspondence by
Landlord or offers to extend the term shall be deemed an extension of the termination date for any
period whatsoever.

          (g) Counterparts. This Lease may be executed in any number of counterparts, each of
which when taken together shall be deemed to be one and the same instrument.

          (h) Telefax Signatures. A telefaxed signature of either party whether upon this Lease
or any related document shall be deemed valid and binding and admissible by either party against
the other as if same were an original ink signature.

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

          (j) No Merger. There shall be no merger of this Lease or of the leasehold estate
hereby created with the fee estate in the Premises or any part thereof by reason of the fact that
the same person, firm, corporation, or other legal entity may acquire or hold, directly or
indirectly, this Lease of the leasehold estate and the fee estate in the Premises or any interest
in such fee estate, without the prior written consent of Landlord’s mortgagee.

          (k) Time of the Essence. TIME IS OF THE ESSENCE IN ALL PROVISIONS OF THIS LEASE,
INCLUDING ALL NOTICE PROVISIONS.

          (l) Recordation of Lease. Tenant shall not record this Lease.

          (m) Accord and Satisfaction. No payment by Tenant or receipt by Landlord of a lesser
amount than any payment of Fixed Rent or Additional Rent herein stipulated shall be deemed to be
other than on account of the earliest stipulated Fixed Rent or Additional Rent due and payable
hereunder, nor shall any endorsement or statement or any check or any letter accompanying any check
or payment as Rent be deemed an accord and satisfaction. Landlord may accept such check or payment
without prejudice to Landlord’s right to recover the balance of such Rent or pursue any other right
or remedy provided for in this Lease, at law or in equity.

- 39 -

 

          (n) No Partnership. Landlord does not, in any way or for any purpose, become a partner of
Tenant in the conduct of its business, or otherwise, or joint venturer or a member of a joint
enterprise with Tenant. This Lease establishes a relationship solely of that of a landlord and
tenant.

          (o) Guaranty. Intentionally Omitted.

          (p) No Presumption Against Drafter. This Lease has been freely negotiated by both
parties; and in the event of any controversy, dispute, or contest over the meaning, interpretation,
validity, or enforceability of this Lease, or any of its terms or conditions, there shall be no
inference, presumption, or conclusion drawn whatsoever against either party by virtue of that party
having drafted this Lease or any portion thereof.

          (q) Force Majeure. If by reason of strikes or other labor disputes, fire or other
casualty (or reasonable delays in adjustment of insurance), accidents, orders or regulations of any
Federal, State, County or Municipal authority, or any other cause beyond Landlord’s reasonable
control, Landlord is unable to furnish or is delayed in furnishing any utility or service required
to be furnished by Landlord under the provisions of this Lease or is unable to perform or make or
is delayed in performing or making any installations, decorations, repairs, alterations, additions
or improvements, or is unable to fulfill or is delayed in fulfilling any of Landlord’s other
obligations under this Lease, no such inability or delay shall constitute an actual or constructive
eviction, in whole or in part, or except as expressly provided in this Lease, entitle Tenant to any
abatement or diminution of Fixed Rent, or relieve Tenant from any of its obligations under this
Lease, or impose any liability upon Landlord or its agents, by reason of inconvenience or annoyance
to Tenant, or injury to or interruption of Tenant’s business, or otherwise.

     40. Waiver of Jury Trial. LANDLORD AND TENANT WAIVE THE RIGHT TO A TRIAL BY JURY IN
ANY ACTION OR PROCEEDING BASED UPON, OR RELATED TO, THE SUBJECT MATTER OF THIS LEASE. THIS WAIVER
IS KNOWINGLY, INTENTIONALLY, AND VOLUNTARILY MADE BY TENANT. NEITHER LANDLORD NOR ANY PERSON
ACTING ON BEHALF OF LANDLORD HAS MADE ANY REPRESENTATIONS OF FACT TO INDUCE THIS WAIVER OF TRIAL BY
JURY OR IN ANY WAY TO MODIFY OR NULLIFY ITS EFFECT. TENANT HAS BEEN REPRESENTED (OR HAS HAD THE
OPPORTUNITY TO BE REPRESENTED) IN THE SIGNING OF THIS LEASE AND IN THE MAKING OF THIS WAIVER BY
INDEPENDENT LEGAL COUNSEL, SELECTED OF ITS OWN FREE WILL, AND TENANT HAS HAD THE OPPORTUNITY TO
DISCUSS THIS WAIVER WITH COUNSEL. TENANT HAS READ AND UNDERSTANDS THE MEANING AND RAMIFICATIONS OF
THIS WAIVER PROVISION AND AS EVIDENCE OF SAME HAS EXECUTED THIS LEASE.

     41. Consent to Jurisdiction. If the Project is located in the State of Maryland,
Tenant hereby consents to the exclusive jurisdiction of the state courts located in the county in
which the Project is located and to the federal courts located in Greenbelt, Maryland.

- 40 -

 

     42. OFAC. Tenant represents, warrants and covenants that Tenant and its principals are
not (i) acting, and will not act, directly or indirectly, for or on behalf of any person, group,
entity or nation named by any Executive Order or the United States Treasury Department as a
terrorist, “Specially Designated and Blocked Person,” or other banned or blocked person, entity,
nation or transaction pursuant to any law, order, rule or regulation that is enforced or
administered by the Office of Foreign Assets Control; and (ii) engaged, and will not engage, in
this transaction, directly or indirectly, on behalf of, or instigating or facilitating, and will
not instigate or facilitate, this transaction, directly or indirectly, on behalf of, any such
person, group, entity or nation. A breach of any Tenant representation, warranty and covenant
contained in this Section shall be an immediate Event of Default under this Lease without notice or
cure rights. Tenant hereby agrees to defend, indemnify and hold harmless Landlord from and against
any and all claims, damages, losses, risks, liabilities and expenses (including reasonable
attorneys’ fees and costs) arising from or related to Tenant’s breach of any of the foregoing
representations, warranties and/or covenants.

[SIGNATURES FOLLOW]

- 41 -

 

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

LANDLORD:

	 	 	 	 	 	 	 	 	 	 	 
	BRANDYWINE RESEARCH LLC,

a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:	 	BRANDYWINE ACQUISITION PARTNERS, L.P.,	 	 
	 	 	a Delaware limited partnership	 	 
	 	 	Member	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	BDN PROPERTIES I, INC.,	 	 
	 	 	 	 	a Delaware corporation	 	 
	 	 	 	 	General Partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:          /s/ Robert K. Wiberg
	 	 	 	[SEAL]	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Robert K. Wiberg	 	 
	 	 	 	 	 	 	Executive Vice President and	 	 
	 	 	 	 	 	 	Managing Director-Southeast Region	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:          /s/
Michael S. Cooper
	 	 	 	[SEAL]	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Name: Michael S. Cooper	 	 	 	 	 	 
	 

	 	 	 	Title:   Senior
Vice President	 	 	 	 	 	 

	 	 	 	 	 	 	 
	TENANT:	 	 
	EMERGENT BIOSOLUTIONS INC.,

a Delaware corporation	 	 
	By:          /s/
Fuad El-Hibri

	 	 	 	[SEAL]	 	 
	 

	 	 	 	 	 	 
	Name:
Fuad El-Hibri
	 	 	 	 	 	 
	Title:
CEO
	 	 	 	 	 	 

 

 

EXHIBIT A

SPACE PLAN

 

 

EXHIBIT B

CONFIRMATION OF LEASE TERM

     THIS MEMORANDUM is made as of                                         , 2006, between BRANDYWINE RESEARCH LLC, a
Delaware limited liability company (“Landlord”), and EMERGENT BIOSOLUTIONS INC., a Delaware
corporation (“Tenant”), who entered into a lease dated for reference purposes as of
                                        , 2006, covering certain premises located at 2273 Research Boulevard,
Rockville, Maryland 20850. All capitalized terms, if not defined herein, shall be defined as they
are defined in the Lease.

     1. The parties to this Memorandum hereby agree that the date of                     , 200___is the
“Commencement Date” of the Term and the date of                      is the expiration date of the Lease.

     2. Tenant hereby confirms the following:

          (a) That it has accepted possession of the Premises pursuant to the terms of the Lease;

          (b) That the improvements, including the Landlord Work, required to be furnished according to
the Lease by Landlord have been Substantially Completed;

          (c) That Landlord has fulfilled all of its duties of an inducement nature or are otherwise set
forth in the Lease;

          (d) That there are no offsets or credits against rentals, and the $                     Security Deposit
has been paid as provided in the Lease;

          (e) To the best of each party’s knowledge, without investigation, that there is no default by
Landlord or Tenant under the Lease and the Lease is in full force and effect.

     3. Landlord hereby confirms to Tenant that its Building Number is                      and its Lease Number
is                     . This information must accompany each Rent check or wire payment.

     4. This Memorandum, each and all of the provisions hereof, shall inure to the benefit, or
bind, as the case may require, the parties hereto, and their respective successors and assigns,
subject to the restrictions upon assignment and subletting contained in the Lease.

[SIGNATURES FOLLOW]

Exhibit B

Page 1 of 2

 

 

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

LANDLORD:

	 	 	 	 	 	 	 	 	 	 	 
	BRANDYWINE RESEARCH LLC,

a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:	 	BRANDYWINE ACQUISITION PARTNERS, L.P.,	 	 
	 	 	a Delaware limited partnership	 	 
	 	 	Member	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	BDN PROPERTIES I, INC.,	 	 
	 	 	 	 	a Delaware corporation	 	 
	 	 	 	 	General Partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	 	 	[SEAL]	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Robert K. Wiberg	 	 
	 	 	 	 	 	 	Executive Vice President and	 	 
	 	 	 	 	 	 	Managing Director-Southeast Region	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	 	 	[SEAL]	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 	 	 

	 	 	 	 	 	 	 
	TENANT:	 	 
	EMERGENT BIOSOLUTIONS INC.,

a Delaware corporation	 	 
	By:

	 	 	 	[SEAL]	 	 
	 

	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 

Exhibit B

Page 2 of 2

 

 

EXHIBIT C

BUILDING RULES AND REGULATIONS

LAST REVISION: MARCH 14, 2002

Landlord reserves the right to rescind any of these rules and make such other and further rules and
regulations which do not conflict with the provisions of the Lease to which this Exhibit C is an
exhibit, as in the judgment of Landlord shall from time to time be needed for the safety,
protection, care and cleanliness of the Project, the operations thereof, the preservation of good
order therein and the protection and comfort of its tenants, their agents, employees and invitees,
which rules when made and notice thereof given to Tenant shall be binding upon him, her or it in a
like manner as if originally prescribed.

	1.	 	Sidewalks, entrances, passages, elevators, vestibules, stairways, corridors, halls, lobby and
any other part of the Building shall not be obstructed or encumbered by any Tenant or used for
any purpose other than ingress or egress to and from each tenant’s premises. Landlord shall
have the right to control and operate the common portions of the Building and exterior
facilities furnished for common use of the tenants (such as the eating, smoking, and parking
areas) in such a manner as Landlord deems appropriate.

	2.	 	No awnings or other projections shall be attached to the outside walls of the Building
without Landlord’s prior written consent. All drapes, or window blinds, must be of a quality,
type and design, color and attached in a manner approved by Landlord.

	3.	 	No showcases or other articles shall be put in front of or affixed to any part of the
exterior of the Building, or placed in hallways or vestibules without prior Landlord’s written
consent.

	4.	 	Rest rooms and other plumbing fixtures shall not be used for any purposes other than those
for which they were constructed and no debris, rubbish, rags or other substances shall be
thrown therein. Only standard toilet tissue may be flushed in commodes. All damage resulting
from any misuse of these fixtures shall be the responsibility of the tenant who, or whose
employees, agents, visitors, clients, or licensees shall have caused same.

	5.	 	No tenant, without Landlord’s prior consent, shall mark, paint, drill into, bore, cut or
string wires or in any way deface any part of the Premises or the Building of which they form
a part except for the reasonable hanging of decorative or instructional materials on the walls
of the Premises.

	6.	 	Tenants shall not construct or maintain, use or operate in any part of the project any
electrical device, wiring or other apparatus in connection with a loud speaker system or other
sound/communication system which may be heard outside the Premises. Any such communication
system to be installed within the Premises shall require prior written approval of Landlord.

	7.	 	No mopeds, skateboards, scooters or other vehicles and no animals (other than guide dogs),
birds or other pets of any kind shall be brought into or kept in or about the Building.

Exhibit C

Page 1 of 4

 

 

	8.	 	No tenant shall cause or permit any unusual or objectionable odors to be produced upon or
permeate from its premises.

	9.	 	No space in the Building shall be used for the manufacture of goods for sale in the ordinary
course of business, or for sale at auction of merchandise, goods or property of any kind.

	10.	 	No tenant, or employees of tenant, shall make any unseemly or disturbing noises or disturb or
interfere with the occupants of this or neighboring buildings or residences by voice, musical
instrument, radio, talking machines, whistling, singing, or in any way. All passage through
the Building’s hallways, elevators, and main lobby shall be conducted in a quiet,
business-like manner. Rollerblading and rollerskating shall not be permitted in the Building
or in the common areas of the Project.

	11.	 	No tenant shall throw anything out of the doors, windows, or down corridors or stairs of the
Building.

	12.	 	Tenant shall not place, install or operate on the Premises or in any part of the Project, any
engine, stove or machinery or conduct mechanical operations or cook thereon or therein (except
for coffee machine, microwave oven, toasters and/or vending machine), or place or use in or
about the Premises or Project any explosives, gasoline, kerosene oil, acids, caustics or any
other flammable, explosive, or hazardous material without Landlord’s prior written consent.

	13.	 	No smoking is permitted in the Building, including but not limited to the rest rooms,
hallways, elevators, stairs, lobby, exit and entrances vestibules, sidewalks, parking lot area
except for the designated exterior smoking area. All cigarette ashes and butts are to be
deposited in the containers provided for same, and not disposed of on sidewalks, parking lot
areas, or toilets within the Building rest rooms.

	14.	 	Tenants are not to install any additional locks or bolts of any kind upon any door or window
of the Building without Landlord’s prior written consent. Each tenant must, upon the
termination of tenancy, return to the Landlord all keys for the Premises, either furnished to
or otherwise procured by such tenant, and all security access cards to the Building.

	15.	 	All doors to hallways and corridors shall be kept closed during business hours except as they
may be used for ingress or egress.

	16.	 	Tenant shall not use the name of the Building, Landlord or Landlord’s Agent in any way in
connection with his business except as the address thereof. Landlord shall also have the
right to prohibit any advertising by tenant, which, in its sole opinion, tends to impair the
reputation of the Building or its desirability as a building for offices, and upon written
notice from Landlord, tenant shall refrain from or discontinue such advertising.

	17.	 	Landlord shall provide Tenant with five (5) Security Access Cards per 1,000 rentable square
feet of floor space, at Landlord’s sole cost. Tenants must be responsible for all Security
Access cards issued to them, and to secure the return of same from any employee terminating
employment with them. Lost cards shall cost Tenant $35.00 per

Exhibit C

Page 2 of 4

 

 

	 	 	card to replace. No person/company other than Building tenants and/or their employees may
have Security Access cards unless Landlord grants prior written approval.

	18.	 	All deliveries by vendors, couriers, clients, employees or visitors to the Building which
involve the use of a hand cart, hand truck, or other heavy equipment or device must be made
via the Freight Elevator. Tenant shall be responsible to Landlord for any loss or damage
resulting from any deliveries made by or for tenant to the Building. Tenant shall procure and
deliver a certificate of insurance from tenant’s movers which certificate shall name Landlord
as an additional insured.

	19.	 	Landlord reserves the right to inspect all freight to be brought into the Building, and to
exclude from the Building all freight or other material which violates any of these rules and
regulations.

	20.	 	Tenant will refer all contractors, contractor’s representatives and installation technicians,
rendering any service on or to the premises for tenant, to Landlord for Landlord’s approval
and supervision before performance of any contractual service or access to Building. This
provision shall apply to all work performed in the Building including installation of
telephones, telegraph equipment, electrical devices and attachments and installations of any
nature affecting floors, walls, woodwork, trim, windows, ceilings, equipment or any other
physical portion of the Building. Landlord reserves right to require that all agents of
contractors/vendors sign in and out of the Building.

	21.	 	Landlord reserves the right to exclude from the Building at all times any person who is not
known or does not properly identify himself to Landlord’s management or security personnel.

	22.	 	Landlord may require, at its sole option, all persons entering the Building after 6 PM or
before 7 AM, Monday through Friday and at any time on Holidays, Saturdays and Sundays, to
register at the time they enter and at the time they leave the Building.

	23.	 	No space within the Building, or in the common areas such as the parking lot, may be used at
any time for the purpose of lodging, sleeping, or for any immoral or illegal purposes.

	24.	 	No employees or invitees of tenant shall use the hallways, stairs, lobby, or other common
areas of the Building as lounging areas during “breaks” or during lunch periods.

	25.	 	No canvassing, soliciting or peddling is permitted in the Building or its common areas by
tenants, their employees, or other persons.

	26.	 	No mats, trash, or other objects shall be placed in the public corridors, hallways, stairs,
or other common areas of the Building.

	27.	 	If recycling is done at the Project, Tenant must place all recyclable items of cans, bottles,
plastic and office recyclable paper in appropriate containers provided by Landlord in each
tenant’s space. Removal of these recyclable items will be by Landlord’s janitorial personnel.

Exhibit C

Page 3 of 4

 

 

	28.	 	Landlord does not maintain suite finishes which are non-standard, such as kitchens,
bathrooms, wallpaper, special lights, etc. However, should the need arise for repair of items
not maintained by Landlord, Landlord at its sole option, may arrange for the work to be done
at tenant’s expense.

	29.	 	Drapes installed by tenant, which are visible from the exterior of the Building, must be
cleaned by Tenant, at its own expense, at least once a year.

	30.	 	No pictures, signage, advertising, decals, banners, etc. are permitted to be placed in or on
windows in such a manner as they are visible from the exterior, without Landlord’s prior
written consent.

	31.	 	Tenant or tenant’s employees are prohibited at any time from eating or drinking in hallways,
elevators, rest rooms, lobby or lobby vestibules.

	32.	 	Tenant shall be responsible to Landlord for any acts of vandalism performed in the Building
by its employees, agents, invitees or visitors.

	33.	 	No tenant shall permit the visit to its Premises of persons in such numbers or under such
conditions as to interfere with the use and enjoyment of the entrances, hallways, elevators,
lobby or other public portions or facilities of the Building and exterior common areas by
other tenants.

	34.	 	Landlord’s employees shall not perform any work or do anything outside of their regular
duties unless under special instructions from Landlord. Requests for such requirements must
be submitted in writing to Landlord.

	35.	 	Tenant agrees that neither tenant nor its agents, employees, licensees or invitees will
interfere in any manner with the installation and/or maintenance of the heating, air
conditioning and ventilation facilities and equipment.

	36.	 	Landlord will not be responsible for lost or stolen personal property, equipment, money or
jewelry from tenant’s area or common areas of the Project regardless of whether such loss
occurs when area is locked against entry or not.

	37.	 	Landlord will not permit entrance to tenant’s Premises by use of pass key controlled by
Landlord, to any person at any time without written permission of tenant, except employees,
contractors or service personnel supervised or employed by Landlord.

	38.	 	Tenant and its agents, employees and invitees shall observe and comply with the driving and
parking signs and markers on the Building grounds and surrounding areas.

	39.	 	Tenant and its employees, invitees, agents, etc. shall not enter other separate tenants’
hallways, restrooms or premises unless they have received prior approval from Landlord’s
management.

Exhibit C

Page 4 of 4

 

 

EXHIBIT D

CLEANING SPECIFICATIONS

DAILY : BUILDING AND TENANT AREAS

	 	1.	 	All desks and other furniture will be dusted with specially treated dust clothes.

	 	2.	 	All windowsills, chair rails, baseboards, moldings, partitions and picture frames that
are less than six feet in height will be hand dusted and wiped clean.

	 	3.	 	All non-carpeted floors will be dust mopped with specially treated dust mops.

	 	4.	 	All bright metal work will be maintained and kept in a clean and polished condition.

	 	5.	 	All drinking fountains will be thoroughly cleaned and sanitized.

	 	6.	 	All stairways will be swept and wet mopped. Stairways shall be policed daily to remove
all debris. Walls, handrails and fixtures are to be spot cleaned and dusted. Lights,
pipes and signage are to be dusted as necessary.

	 	7.	 	All elevators will be vacuumed and the interior of all cabs will be wiped clean and all
metal hardware will be polished. This includes damp wipe, dust and/or thoroughly cleaning
all exterior doors, cab walls, doorframes, indicator panels, tracts, plates and grooves.

	 	8.	 	Empty, clean and dust all wastepaper baskets, ashtrays, receptacles, etc. After
emptying waste baskets, reline with an approved liner as needed.

	 	9.	 	Remove all trash and wastepaper to areas designated by Management.

	 	10.	 	Vacuum all carpeted areas. This shall include all walk-off mats. In addition, the
carpets are to be spot cleaned when necessary.

	 	11.	 	All tile floors will maintain a satin finish. Hard surface floor areas shall be
maintained in a manner which consistently presents the appearance desired without visible
evidence of traffic patterns. Particular attention shall be paid to edges to ensure a
proper and dust free appearance. Any damage to hard surface floors resulting from improper
care shall be the full responsibility of Contractor. Contractor shall provide the details
of a program to maintain tile floors to insure consistent luster and remove all marks.

	 	12.	 	All glass surfaces, windows, doors and directory boards shall be spot-cleaned, using an
approved glass cleaner, and all glass shall be left in a bright condition which is free of
streaks and dust.

	 	13.	 	Wipe and clean all counters, tables, chairs and appliances in kitchen areas.

	 	14.	 	Clean all glass at the building and tenant entrances.

	 	15.	 	Spot clean all horizontal and vertical surfaces removing fingerprints, smudges and
stains.

Exhibit D

Page 1 of 2

 

 

LAVATORIES

	 	1.	 	Floors are to be swept and washed using an approved antiseptic liquid detergent.
Floors are to be machine scrubbed as needed but not less frequently than every quarter.

	 	2.	 	Refill all dispensers, empty trash, clean and sanitize all restroom fixtures. Wipe all
counters, clean mirrors, wipe chrome and spot wipe partitions and ceramic tile walls.

	 	3.	 	Weekly wash all restroom partitions on both sides.

	 	4.	 	Remove all wastepaper and refuse.

	 	5.	 	No less frequently than quarterly, wash all ceramic tile walls.

WEEKLY

	 	1.	 	Remove fingerprints, smudges and scuff marks from all vertical and horizontal surfaces
such as doors, walls and sills.

	 	2.	 	Wash and refinish resilient floors in public areas. Strip, wax and polish the floors
as needed.

	 	3.	 	Polish and buff all no wax resilient floors in tenant areas.

	 	4.	 	Dust and damp wipe all louvers and ceiling grills.

	 	5.	 	Spot clean all interior partition glass windows and clean all interior glass entrance
doors.

QUARTERLY

	 	1.	 	Dust and clean all vertical surfaces such as walls, partitions, doors, etc. that are
not cleaned during the nightly cleaning process.

	 	2.	 	Dust and wipe clean all blinds.

	 	3.	 	Dust the inside of elevator telephone cabinets.

	 	4.	 	Shampoo all elevator carpets.

Exhibit D

Page 2 of 2

 

 

EXHIBIT E

WORK LETTER

     This Exhibit (“Exhibit”) is a part of the Lease to which this Exhibit is attached.
Capitalized terms not defined in this Exhibit shall have the meanings set forth in the Lease.

     1. Definitions.

     1.1 “Architect” means the licensed architect or space planner, if any, engaged by Landlord to
prepare and/or review the Plans.

     1.2 “Building Standard” means the quality and quantity of materials, finishes and workmanship
specified from time to time by Landlord as being standard for leasehold improvements at the
Building or for other areas at the Building, as applicable.

     1.3 “Contractor” means the firm from time to time selected by Landlord to construct, install
or alter the Leasehold Improvements.

     1.4 “Leasehold Improvements” means the improvements, alterations and other physical additions
to be made or provided to; constructed, delivered or installed at; or otherwise acquired for the
Premises in accordance with the Plans or otherwise approved in writing by Landlord or paid for in
whole or in part from the Improvement Allowance. The Leasehold Improvements to be made,
constructed or installed by Landlord in connection with Tenant’s initial occupancy of the Premises
are or will be shown on the Plans. Any provision of this Exhibit to the contrary notwithstanding,
the Leasehold Improvements shall not include Tenant’s Equipment.

     1.5 “Plans” has the meaning set forth in Section 2.

     1.6 “Punchlist Items” means items which do not materially affect Tenant’s ability to use the
Premises for the Permitted Uses.

     1.7 “Substantial Completion” or “Substantially Completed” means the date on which the
Leasehold Improvements have been completed except for Punchlist Items as determined by Landlord’s
architect or space planner, and Landlord has obtained a certificate permitting the lawful occupancy
of the Premises issued by the appropriate governmental authority.

     1.8 “Tenant Delay” means that Landlord is actually delayed in Substantially Completing any
Leasehold Improvements that Landlord is required to design, construct, install or otherwise provide
or in obtaining any permit(s) or certificate(s) that Landlord is required to obtain under the Lease
or this Exhibit as a result of any of the following:

          a. Tenant fails to timely submit any plans, specifications, materials, comments, approvals or
information as required under this Exhibit;

          b. Tenant changes (notwithstanding Landlord’s approval of such changes) any drawings, plans or
specifications for the Premises or the Plans after Landlord and Tenant have approved such drawings,
plans or specifications or the Plans, as applicable;

Exhibit E

Page 1 of 4

 

 

          c. Tenant changes the instructions or information given to the Architect in connection with
the Architect’s preparation of the Plans;

          d. Tenant requests non-Building Standard improvements, materials, finishes or installations;

          e. delays caused by any governmental or quasi-governmental authorities arising from the
Leasehold Improvements being designed to include items or improvements not typically found in the
office space of other first-class office buildings in the Washington, D.C. area;

          f. Tenant interferes with the work of Landlord or Contractor including, without limitation,
during any pre-commencement entry period; or

          g. Tenant fails to fully and timely comply with the terms of this Exhibit.

     1.9 “Tenant’s Equipment” means any telephone, telephone switching, telephone and data cabling,
furniture, computers, servers, Tenant’s trade fixtures and other personal property to be installed
by or on behalf of Tenant in the Premises.

     1.10 “Tenant’s Expenditure Authorization” means an authorization by Tenant to Landlord to
expend funds on behalf of Tenant for the Work.

     1.11 “Work” or “Landlord’s Work” means the labor and materials required for any demolition,
construction, acquisition, installation and finishing of the Leasehold Improvements.

     2. Plans. As soon as practicable after the execution of the Lease, but in any event
not more than ten (10) business days from the date of full execution of the Lease, Tenant shall
provide the Architect with sufficient instructions and information to enable the Architect to
prepare and complete the space plan and the architectural construction plan including
specifications and finish schedules for the Leasehold Improvements (collectively, the “Plans”).
The Plans shall be prepared by the Architect and submitted to Landlord for approval. To the extent
that any improvements at the Project are required by any governmental authority in connection with
the Work (as opposed to the fact that the floor is occupied by more than one tenant), Landlord will
notify Tenant in writing advising Tenant of the work required by such governmental authority (such
notice shall be in advance of Landlord performing any such work).

     Landlord shall make such improvements at Tenant’s expense and Tenant will pay Landlord for the
cost thereof within thirty (30) days after receipt of an invoice therefor. Once approved by
Landlord, the Plans and the Tenant Expenditure Authorization, shall be submitted to Tenant for
approval. Within five (5) business days after Tenant’s receipt of the Plans and the Tenant
Expenditure Authorization, Tenant shall notify Landlord in writing as to whether Tenant approves or
disapproves the Plans and the Tenant Expenditure Authorization. If Tenant fails to timely deliver
to Landlord Tenant’s written disapproval of the Plans and/or the Tenant Expenditure Authorization
within the aforementioned period, Tenant shall be deemed to have approved the Plans and the Tenant
Expenditure Authorization and Landlord shall be authorized (but not required) to proceed thereon.
Each change in the Plans must receive Landlord’s prior written approval. Landlord’s approval of the
Plans and any changes thereto shall impose no

Exhibit E

Page 2 of 4

 

 

responsibility or liability on Landlord for their completeness, design sufficiency, or
compliance with all applicable laws, rules and regulations of governmental agencies or authorities.

     3. Completion of Leasehold Improvements.

     3.1 Except to the extent that this Exhibit provides that Tenant will perform any of the Work,
Landlord will cause the Leasehold Improvements to be made, constructed or installed in a good and
workmanlike manner without material variance from the Plans except for such variances as may have
been approved by Tenant in writing. Except to the extent that the Plans expressly provide for the
construction or installation of improvements, items, materials, fixtures, finishes, quantities,
specifications, etc. that are non-Building Standard, Landlord will cause the Leasehold Improvements
to be constructed or installed to Building Standards. Any provision of this Exhibit to the
contrary notwithstanding, Tenant shall be solely responsible for the ordering, delivery and
installation of Tenant’s Equipment.

     3.2 Except as set forth in this Exhibit to the contrary, all Work shall be carried out by the
Contractor under the sole direction of Landlord. Any Leasehold Improvements relating to the
Building fire and life safety systems shall be performed by Landlord’s fire and life safety
subcontractor, at Tenant’s expense. Tenant, at Tenant’s expense and under Landlord’s supervision
and in coordination with Contractor’s performance of the Work, shall be responsible for contracting
for and performing the installation of any cabling necessary for Tenant’s use of the Premises.
Neither Tenant nor any of its agents or contractors shall alter, modify or in any manner disturb
any of the Building’s central systems.

     3.3 Landlord will competitively bid the general conditions and fee proposal for the
construction of the Leasehold Improvements with three (3) general contractors preapproved by
Landlord and Tenant, which bids shall be based upon the Net Rentable Area of the Premises, a
schematic design of the Leasehold Improvements and Tenant’s preliminary budget. Each general
contractor shall be required to identify all long-lead items in its proposal. Landlord shall
select the successful bidder (who shall then become the Contractor) within five (5) days after
Landlord notifies Tenant of the receipt of the proposals and delivers a copy of such proposals to
Tenant. In evaluating the bids, Landlord shall consider, among other factors, the cost, licensing
of the bidder, bonding requirements, timing of substantial completion and the reputation of the
bidder. Landlord shall have the right to exclude any proposal not timely submitted to Landlord.

     3.4 Tenant shall cooperate with Landlord, Architect and the Contractor to promote the
efficient and expeditious completion of the Work. Landlord will diligently pursue completion of
any Punchlist Items and Landlord will make reasonable efforts to complete all such Punchlist Items
within thirty (30) days after inspection.

     3.5 Upon the occurrence of any Tenant Delay, Landlord shall have the right to take such Tenant
Delay into account and to reasonably accelerate the date of Substantial Completion or to establish
the date of Substantial Completion in the case of a Tenant Delay that effectively prevents
Substantial Completion from occurring. If there occurs any concurrent Tenant Delay and either a
Landlord delay or a force majeure delay (or both), fifty percent (50%) of such delay shall be
deemed to be a Tenant Delay. Landlord shall have no obligation to expend any funds, employ any
additional labor, contract for overtime work or otherwise take any action to compensate for any
Tenant Delay.

Exhibit E

Page 3 of 4

 

 

     4. Improvement Allowance and Payment of Costs.

     4.1 Tenant shall be responsible for the full and timely payment of all Improvement Costs.
“Improvement Costs” means (i) all costs related to the design of the Leasehold Improvements
including, without limitation, the professional fees of the Architect and other professionals
preparing and/or reviewing the Plans (collectively, the “Planning Costs”); (ii) all costs in the
permitting, demolition, construction, acquisition and installation of the Leasehold Improvements,
including, without limitation, the cost of all labor and materials supplied by Contractor,
suppliers, independent contractors and subcontractors arising in connection with the Leasehold
Improvements (collectively, the “Construction Costs”); and (iii) Landlord’s Fee.

     4.2 Landlord hereby grants to Tenant an allowance (the “Improvement Allowance”) in an amount
equal to Thirty-Five Dollars ($35.00) multiplied by the Rentable Area of the Premises. Except as
may be expressly provided to the contrary in this Exhibit, the Improvement Allowance shall be
applied solely towards payment of the Improvement Costs. Landlord shall have no obligation to make
a disbursement from the Improvement Allowance if, at the time such disbursement is to be made,
there exists an Event of Default or a condition which with notice and/or the passage of time would
constitute an Event of Default.

     In addition to the Improvement Allowance, Landlord hereby grants to Tenant an architectural
test-fit allowance in an amount equal to Ten Cents ($.010) per square foot of Rentable Area of the
Premises.

     Notwithstanding the foregoing, Tenant may apply a portion of the Improvement Allowance, which
portion shall not exceed Seven Dollars ($7.00) per square foot of Rentable Area of the Premises
(the “Moving Allocation”), towards the payment of Moving Expenses. “Moving Expenses” means
out-of-pocket costs and expenses incurred by Tenant in moving Tenant’s business to the Premises
including, without limitation, costs and expenses incurred by Tenant to (i) relocate telephone
equipment and install new telephone lines; (ii) relocate existing data communication circuit(s);
(iii) purchase, rent or lease materials used in the relocation of Tenant’s and its employees’
belongings, furniture or equipment; and (iv) move (labor, material, vehicle usage, supervisor, etc)
Tenant’s and its employees’ belongings, furniture or equipment to the Premises.

     4.3 Tenant shall pay Landlord a fee (“Landlord’s Fee”) equal to one percent (1%) of the sum of
the Planning Costs and the Construction Costs as compensation for Landlord’s construction
management services under this Exhibit. Tenant shall pay the Landlord’s Fee to Landlord within
thirty (30) days after Landlord sends an invoice therefor to Tenant; provided, however, at any time
on or after the date Landlord approves the Plans, Landlord shall have the right to deduct all or a
portion of Landlord’s Fee from the Improvement Allowance.

     4.4 If Tenant fails to make any payment when due under this Exhibit, such failure shall be deemed a
failure to make a Rent payment under the Lease. To the extent that the Improvement Costs exceed
the Improvement Allowance, Tenant shall be solely responsible for payment of such excess amount
(the “Excess Costs”). Landlord shall only be obligated to make Improvement Allowance disbursements
for Improvement Costs then being paid in the ratio that the Improvement Allowance bears to the
total Improvement Costs (as reasonably determined by Landlord).

Exhibit E

Page 4 of 4

 

 

EXHIBIT F

SNDA

     THIS SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT (this “Agreement”) is made
by and between TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA, a New York corporation with
offices at 730 Third Avenue, New York, New York 10017 (“Lender”) and                     , a [an]
[individual] name/of/state [corporation] [limited liability company] [general partnership]
[limited partnership] [d/b/a/ ] with its principal place of business at (“Tenant”).

RECITALS:

     A. Lender has made or is about to make a loan (together with all advances and increases, the
"Loan”) to                     , a [an] [individual] [corporation] [limited company] [general partnership]
[limited partnership] (“Borrower”).

     B. Borrower, as landlord, and Tenant have entered into a lease dated as amended by amendments
dated (the “Lease”) which leased to Tenant [Suite No. ] [Floor ] [Store No. ] (the “Premises”)
located in the Property (defined below).

     C. The Loan is or will be secured by the [Open-End] Mortgage, Assignment of Leases and Rents,
Fixture Filing Statement and Security Agreement recorded or to be recorded in the official records
of the County of      , State or Commonwealth of ___(together with all advances, increases,
amendments or consolidations, the “Mortgage”) and the Assignment of Leases and Rents recorded or to
be recorded in such official records (together with all amendments or consolidations, the
"Assignment”), assigning to Lender the Lease and all rent, additional rent and other sums payable
by Tenant under the Lease (the “Rent”).

     D. The Mortgage encumbers the real property, improvements and fixtures located at   in
the City of Rockville, Montgomery County, Maryland commonly known as                                         , and
described on Exhibit A (the “Property”).

     IN CONSIDERATION of the mutual agreements contained in this Agreement, Lender and Tenant agree
as follows:

     1. The Lease and all of Tenant’s rights under the Lease are and will remain subject and
subordinate to the lien of the Mortgage and all of Lender’s rights under the Mortgage and Tenant
will not subordinate the Lease to any other lien against the Property without Lender’s prior
consent.

     2. This Agreement constitutes notice to Tenant of the Mortgage and the Assignment and, upon
receipt of notice from Lender, Tenant will pay the Rent as and when due under the Lease to Lender
and the payments will be credited against the Rent due under the Lease.

     3. Tenant does not have and will not acquire any right or option to purchase any portion of or
interest in the Property.

Exhibit F

Page 1 of 4

 

 

     4. Tenant and Lender agree that if Lender exercises its remedies under the Mortgage or the
Assignment and if Tenant is not then in default under this Agreement and if Tenant is not then in
default beyond any applicable grace and cure periods under the Lease:

          (a) Lender will not name Tenant as a party to any judicial or non-judicial foreclosure or
other proceeding to enforce the Mortgage unless joinder is required under applicable law but in
such case Lender will not seek affirmative relief against Tenant, the Lease will not be terminated
and Tenant’s possession of the Premises will not be disturbed;

          (b) If Lender or any other entity (a “Successor Landlord”) acquires the Property
through foreclosure, by other proceeding to enforce the Mortgage or by deed-in-lieu of foreclosure
(a “Foreclosure”), Tenant’s possession of the Premises will not be disturbed and the Lease
will continue in full force and effect between Successor Landlord and Tenant; and

          (c) If, notwithstanding the foregoing, the Lease is terminated as a result of a Foreclosure, a
lease between Successor Landlord and Tenant will be deemed created, with no further instrument
required, on the same terms as the Lease except that the term of the replacement lease will be the
then unexpired term of the Lease. Successor Landlord and Tenant will execute a replacement lease
containing substantially the same terms as the Lease at the request of either.

     5. Upon Foreclosure, Tenant will recognize and attorn to Successor Landlord as the landlord
under the Lease for the balance of the term. Tenant’s attornment will be self-operative with no
further instrument required to effectuate the attornment except that at Successor Landlord’s
request, Tenant will execute instruments reasonably satisfactory to Successor Landlord and Tenant
confirming the attornment.

     6. Successor Landlord will not be:

          (a) liable for any act or omission of any prior landlord under the Lease occurring before the
date of the Foreclosure except for repair and maintenance obligations of a continuing nature
imposed on the landlord under the Lease;

          (b) required to credit Tenant with any Rent paid more than one month in advance or for any
security deposit unless such Rent or security deposit has been received by Successor Landlord;

          (c) bound by any amendment, renewal or extension of the Lease made after the date of this
Agreement that is inconsistent with the terms of this Agreement or is not in writing and signed
both by Tenant and landlord;

          (d) bound by any reduction of the Rent unless the reduction is in connection with an extension
or renewal of the Lease at prevailing market terms or casualty damage or condemnation or any other
event permitted by the Lease, or was made with Lender’s prior consent;

          (e) bound by any reduction of the term1 of the Lease or any termination, cancellation or
surrender of the Lease unless the reduction, termination, cancellation or surrender

 

			
	1	 	For purposes of this subparagraph “the term
of the Lease” includes any renewal term after the right to renew has been
exercised.

Exhibit F

Page 2 of 4

 

 

occurred during the last 6 months of the term or in connection with casualty damage or
condemnation or any other event permitted by the Lease, or was made with Lender’s prior consent;

          (f) bound by any amendment, renewal or extension of the Lease (except for amendments, renewals
and extensions expressly provided for in the Lease) entered into without Lender’s prior consent if
the Premises represents 50% or more of the net rentable area of the building in which the Premises
is located;

          (g) subject to any credits, offsets, claims, counterclaims or defenses that Tenant may have
that arose prior to the date of the Foreclosure or liable for any damages Tenant may suffer as a
result of any misrepresentation, breach of warranty or any act of or failure to act by any party
other than Successor Landlord;

          (h) bound by any obligation to make improvements to the Property, including the Premises, to
make any payment or give any credit or allowance to Tenant provided for in the Lease or to pay any
leasing commissions arising out of the Lease, except that Successor Landlord will be:

(i) bound by any such obligations provided for in the Lender-approved form lease;

(ii) bound by any such obligations if the overall economic terms of the Lease
(including the economic terms of any renewal options) represented market terms for
similar space in properties comparable to the Property when the Lease was executed;
and

(iii) bound to comply with the casualty and condemnation restoration provisions
included in the Lease provided that Successor Landlord receives the insurance or
condemnation proceeds;

or

          (i) liable for obligations under the Lease with respect to any off-site property or facilities
for the use of Tenant (such as off-site Premises or parking) unless Successor Landlord acquires in
the Foreclosure the right, title or interest to the off-site property.

     7. Lender will have the right, but not the obligation, to cure any default by Borrower, as
landlord, under the Lease. Tenant will notify Lender of any default that would entitle Tenant to
terminate the Lease or abate the Rent and any notice of termination or abatement will not be
effective unless Tenant has so notified Lender of the default and Lender has had a 30-day cure
period (or such longer period as may be necessary if the default is not susceptible to cure within
30 days) commencing on the latest to occur of the date on which (i) the cure period under the Lease
expires; (ii) Lender receives the notice required by this paragraph; and (iii) Successor Landlord
obtains possession of the Property if the default is not susceptible to cure without possession.

     8. All notices, requests or consents required or permitted to be given under this Agreement
must be in writing and sent by certified mail, return receipt requested or by nationally recognized
overnight delivery service providing evidence of the date of delivery, with all charges prepaid,
addressed to the appropriate party at the address set forth above.

Exhibit F

Page 3 of 4

 

 

     9. Any claim by Tenant against Successor Landlord under the Lease or this Agreement will be
satisfied solely out of Successor Landlord’s interest in the Property and Tenant will not seek
recovery against or out of any other assets of Successor Landlord. Successor Landlord will have no
liability or responsibility for any obligations under the Lease that arise subsequent to any
transfer of the Property by Successor Landlord.

     10. This Agreement is governed by and will be construed in accordance with the laws of the
state or commonwealth in which the Property is located.

     11. Lender and Tenant waive trial by jury in any proceeding brought by, or counterclaim
asserted by, Lender or Tenant relating to this Agreement.

     12. If there is a conflict between the terms of the Lease and this Agreement, the terms of the
Lease will prevail as between Successor Landlord and Tenant.

     13. This Agreement binds and inures to the benefit of Lender and Tenant and their respective
successors, assigns, heirs, administrators, executors, agents and representatives.

     14. This Agreement contains the entire agreement between Lender and Tenant with respect to the
subject matter of this Agreement, may be executed in counterparts that together constitute a single
document and may be amended only by a writing signed by Lender and Tenant.

     15. Tenant certifies that: the Lease represents the entire agreement between the landlord
under the Lease and Tenant regarding the Premises; the Lease is in full force and effect; neither
party is in default under the Lease beyond any applicable grace and cure periods and no event has
occurred which with the giving of notice or passage of time would constitute a default under the
Lease; Tenant has entered into occupancy and is open and conducting business in the Premises; and
all conditions to be performed to date by the landlord under the Lease have been satisfied.

[SIGNATURE BLOCKS, NOTARY BLOCKS

AND EXHIBITS FOLLOW ON ORIGINAL]

Exhibit F

Page 4 of 4

 

 

EXHIBIT G

LETTER OF CREDIT

ISSUING BANK:                                                 

ISSUE DATE:                                                             EXPIRY DATE:

LETTER OF CREDIT NUMBER:                        
 

AMOUNT:
$                                                            

	 	 	 
	BENEFICIARY:

	 	APPLICANT:
	Brandywine Research LLC
	 	 
	c\o Brandywine Realty Trust
	 	 
	401 Plymouth Road, Suite 500
	 	 
	Plymouth Meeting, PA 19462
	 	 

RE:                                                             

ACCOUNT #                                         

WE HEREBY ISSUE THIS IRREVOCABLE STANDBY LETTER OF CREDIT IN BENEFICIARY’S FAVOR WHICH IS AVAILABLE
BY PAYMENT AGAINST DRAFTS DRAWN AT                                          BEARING THE CLAUSE: “DRAWN UNDER IRREVOCABLE
STANDBY LETTER OF CREDIT NO.                     ”.

SPECIAL CONDITIONS: — This Letter of Credit shall automatically renew on an annual basis absent 30
days prior written notice to the contrary to Beneficiary.

Beneficiary may draw on this Letter of Credit upon presentation of an affidavit from an authorized
representative of Beneficiary advising that (1) “there has been a default under the Lease which has
not been entirely cured by Tenant” or (2) “This Letter of Credit is set to expire, has not been
renewed and Tenant has failed to present Landlord with a replacement Letter of Credit in accordance
with the Lease.”

			
	PRESENT DOCUMENTS TO:	 	                                        

                                        

                                        

ATTN:                          

Notwithstanding anything to the contrary contained in Article 48 of the UCP 500 hereinafter
referred to, this Letter of Credit No. ___may be transferred one or more times in its entirety
without our consent and without cost upon presentation to us of (i) written transfer instruction
signed by you and naming the transferee and (ii) the original of this Letter of Credit. Upon such
presentation, we shall issue a replacement Letter of Credit in favor of the transferee in the form
of this Letter of Credit. No other documents or presentations will be required by us in connection
with any such transfer.

UNLESS OTHERWISE SPECIFICALLY STATED, THIS CREDIT IS SUBJECT TO THE UNIFORM CUSTOMS AND PRACTICE
FOR DOCUMENTARY CREDITS 1993 REVISION. THE INTERNAL CHAMBER OF COMMERCE PUBLICATION NO. 500.

 

                                                            

AUTHORIZED SIGNATURE

 

 

EXHIBIT H

MONUMENT SIGNAGE

     1. Monument Sign. If after the date hereof, Landlord installs a monument sign for the
Project that features tenant names, as opposed to a sign only referring to the Building or Project
(a “Shared Monument Sign”), subject to the rights of an existing Office Park tenant, MultiPlan,
Tenant shall be entitled to have a panel with Tenant’s trade name (or a reasonable variation
thereof) placed on the Shared Monument Sign. Subject to MultiPlan’s rights, the tenant panels on
the Shared Monument Sign shall be divided equally amongst the tenants on the Shared Monument Sign
without regard to the square footage of each tenant’s premises.

     2. Installation. Upon Landlord’s written approval of the plans and specifications for
Tenant’s panel for the Shared Monument Sign, shall be installed by Landlord at Tenant’s expense.

     3. Specifications. Prior to installing Tenant’s panel on the Shared Monument Sign,
Tenant shall furnish detailed plans and specifications (including the size, color, material, letter
style, type of sign and all other relevant specifications) for Tenant’s panel (or any modification)
to Landlord. The size, color, material, lettering style, type of sign, location and all other
aspects of Tenant’s panel shall be subject to Landlord’s reasonable approval. Landlord shall have
the right to prohibit any aspect of the Shared Monument Sign that Landlord reasonably determines
not to be aesthetically acceptable.

     4. Rights Not Assignable. Tenant’s rights under this Rider shall not be assignable by
Tenant.

     5. Costs. All costs of the Shared Monument Sign including, without limitation, costs
of design, manufacture, installation, operation, permitting, utilization, insurance, replacement
and maintenance of the Shared Monument Sign, shall be divided equally amongst the tenants on the
Shared Monument Sign without regard to the square footage of each tenant’s premises.

     6. Permits and Approvals. Tenant shall be responsible for procuring all licenses and
permits may be required for the installation, use or operation of Tenant’s panel on the Shared
Monument Sign, and Landlord makes no warranties or representations as to the permissibility or the
permitability of the Shared Monument Sign under applicable laws, rules or regulations. Upon
Landlord’s request, Tenant will deliver to Landlord reasonable evidence of Tenant’s having obtained
all necessary governmental approvals for the installation of Tenant’s panel on the Shared Monument
Sign.

     Tenant acknowledges that Landlord has no present intent to have a Shared Monument Sign,
Landlord has no knowledge if a Shared Monument Sign or any similar sign is permitted to be
installed, and Landlord is under no obligation to install a Shared Monument Sign (or any other such
exterior Building signage). Landlord’s failure install a Shared Monument Sign, or pursue
installation thereof, shall in no way relieve Tenant’s obligations under this Lease.

Exhibit H

Page 1 of 2

 

 

     7. Removal. Tenant’s rights under this Rider shall cease upon the occurrence of any of
the following:

          a. the expiration or earlier termination of the Lease; or

          b. the occurrence of an Event of Default under the Lease; or

          c. Tenant’s assignment of the Lease or Tenant’s rights thereunder; or

          d. Tenant subleases (which, for purposes of this Section shall not include any subleases to a
Related Entity), in the aggregate, more than fifty percent (50%) of the rentable area contained in
the original Premises; or

          e. Tenant fails to occupy, in the aggregate, more than fifty percent (50%) of the rentable
area contained in the original Premises.

Exhibit H

Page 2 of 2

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