Document:

Exhibit 10(h)

 

REVOLVING LINE OF CREDIT
PROMISSORY NOTE

(FOR BANK HOLDING
COMPANY)

UNSECURED LOAN

 

	
  Principal

  	
   

  	
  Loan Date

  	
   

  	
  Maturity

  	
   

  	
  Loan No.

  	
   

  	
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $

  	
  2,000,000.00

  	
   

  	
  April 21, 2005

  	
   

  	
  May 1, 2007

  	
   

  	
   

  	
   

  	
   

  	
   

  
											

 

References above are for Lender’s use only
and do not constitute any part of the terms and provisions of this Revolving
Line of Credit Promissory Note.

 

	
  Borrower:

  	
  Frederick County
  Bancorp, Inc.

  	
   

  	
  Lender:

  	
  Atlantic Central Bankers Bank

  
	
   

  	
  P.O. Box 1100

  	
   

  	
   

  	
  1400 Market Street

  
	
   

  	
  Frederick, MD 21702-0100

  	
   

  	
   

  	
  P.O. Box 1109

  
	
   

  	
   

  	
   

  	
   

  	
  Camp Hill, PA 17001-1109

  

 

Principal Amount: 
$2,000,000.00       Initial
Rate:    5.75%    Date of
Note:     April 21, 2005

 

PROMISE TO PAY.  Borrower promises to pay to ATLANTIC CENTRAL
BANKERS BANK, or its order, in lawful money of the United States of America,
the principal amount of Two Million and No/100 Dollars ($2,000,000.00) or as
much as may be outstanding from time to time under the Revolving Line of Credit
extended by ATLANTIC CENTRAL BANKERS BANK to Borrower, together with interest
on the unpaid outstanding principal balance of each advance under the Revolving
Line of Credit from the date of each advance until repayment of each advance at
the rate or rates of interest set forth in herein.

 

1.             DEFINITIONS.  The following words, terms and/or
phrases shall have the following meanings and definitions for purposes of this
Revolving Line of Credit Promissory Note:

 

	
  TERMS

  	
   

  	
  DEFINITION

  
	
   

  	
   

  	
   

  
	
  “Borrower”

  	
   

  	
  Frederick County Bancorp, Inc., its successors
  and assigns.

  
	
   

  	
   

  	
   

  
	
  “Lender”

  	
   

  	
  Atlantic Central Bankers Bank, its successors and
  assigns.

  
	
   

  	
   

  	
   

  
	
  “Note”

  	
   

  	
  This Revolving Line of Credit Promissory Note.

  
	
   

  	
   

  	
   

  
	
  “Wall Street Journal
  Prime Rate of Interest”

  	
   

  	
  The annual interest rate announced and published
  from time to time in the Money Section of the Wall Street Journal as the
  Wall Street Journal Prime Rate.

  The Wall Street Journal
  Prime Rate may be greater or lesser than interest rates which Lender charges
  for loans made to other borrowers and is not solely based on or dependent
  upon the interest rate(s) which Lender may charge to other borrowers or class
  of borrowers.

  

 

2.             RELATED DOCUMENTS.  The terms, provisions, covenants and
conditions of the Loan Agreement: (a) are incorporated into this Note; and
(b) shall govern this Note.  All
definitions of capitalized words, phrases and/or terms set forth in the Loan
Agreement shall apply to words, terms and/or phrases set forth in this Note
which are not expressly defined in this Note.

 

 

3.             ADVANCES
UNDER REVOLVING LINE OF CREDIT.  Borrower
has requested that Lender make loans and/or advances to Borrower under the
Revolving Line of Credit from time to time during the Commitment Period in an
amount and/or amounts, which at any one time shall not exceed the Commitment
Amount.  Lender agrees, subject to the
terms, provisions, conditions and covenants set forth in the Loan Agreement and
in this Note and in reliance upon the warranties and representations extended
by Borrower to Lender in the Loan Agreement, to make such loans and/or advances
to Borrower under the Revolving Line of Credit during the Commitment Period,
which loans and/or advances shall not exceed at any one time the Commitment
Amount.

 

3.1           LENDER MAY EXTEND THE COMMITMENT PERIOD FROM TIME TO TIME BY ISSUING
TO BORROWER A “NOTICE OF RENEWAL” IN WRITING AND REFERENCING THIS NOTE AND
EXTENDING THE TERMINATION DATE TO SUCH DATE AND ON SUCH TERMS AND CONDITIONS AS
LENDER IN ITS SOLE DISCRETION ELECTS.

 

3.2           During the Commitment Period, Borrower may borrow, repay and re-borrow
under the Revolving Line of Credit provided that at any one time the amount
borrowed under the Revolving Line of Credit does not exceed the Commitment
Amount.

 

3.3           This Note evidences a Revolving Line of Credit.
Loans and advances under this Note, as well as directions for debits from
Borrower’s accounts for payments of Obligations, may be requested orally or in
writing by Borrower or by an authorized designated employee and/or officer of
Borrower. Lender will require that all oral requests for loans and advances are
confirmed in writing by said authorized employee and/or officer of Borrower.
Borrower agrees to be liable for all sums either: (A) advanced in
accordance with the written instructions of said authorized employee and/or
officer of Borrower; and/or (B) credited to any of Borrower’s accounts
with Lender. The unpaid principal balance owing on this Note at any time may be
evidenced by endorsements on this Note or by Lender’s internal records,
including daily computer printouts.

 

3.4           Lender shall have no obligation to advance funds
under this Note if: (A) An Event of Default has occurred; and/or
(B) Borrower has utilized funds loaned and/or advanced by Lender to
Borrower under the Revolving Line of Credit for purposes other than those
authorized by the Loan Agreement.

 

4.             PAYMENT.  Borrower will pay regular monthly payments of
all accrued and unpaid interest due at the rate(s) set forth in Paragraph 5 of
this Note as of each payment date, beginning May 1, 2005, with all
subsequent interest payments to be due on the same day of each successive month
until the Termination Date. Borrower will pay all outstanding principal on this
Note on the Termination Date. In addition, on the Termination Date, Borrower
will also pay any accrued and unpaid interest at the rate(s) set forth in this
Note and any late charges and fees, costs and expenses, if any, to which Lender
is entitled pursuant to this Note and the Loan Agreement. Except as provided in
Paragraph 5 hereof, or unless otherwise agreed to by Lender or required by
applicable law, payments by Borrower on account of the Revolving Line of Credit
will be applied first to accrued unpaid interest at the rate(s) set forth in
this Note, then to principal and any remaining amount to any unpaid collection
costs and late charges, if any.

 

5.             VARIABLE
INTEREST RATE.

 

5.1           Subject to the provisions of Paragraph 8 hereof,
the interest rate on all loans and advances on the Revolving Line of Credit
will be the Wall Street Journal Prime Rate of Interest. The Wall Street Journal
Prime Rate of Interest is a variable rate of interest, which changes from time
to time as the Wall Street Journal Prime Rate of Interest changes. The Wall
Street Journal Prime Rate currently is five and three-quarters of one percent
(5.75%) per annum.

 

NOTICE: Under no circumstances will the
interest rate on this Note be more than the maximum rate allowed by applicable
law.

 

5.2           The interest rate set forth in Section 5.1 hereof will be computed
and calculated on a year consisting of 360 days but billed and charged for the
actual number of days of each month.

 

2

 

6.             PREPAYMENT.  During the Commitment Period, Borrower may
repay without penalty any or all of the loans and advances made by Lender to
Borrower under the Revolving Line of Credit. 
Such repayments of loans and advances made under the Revolving Line of
Credit by Borrower shall reduce the outstanding principal balance due on the
Revolving Line of Credit.  Any such
repayments of loans and advances on the Revolving Line of Credit by Borrower
shall not be applied to interest on the outstanding loans and advances on the
Revolving Line of Credit, shall not be a substitute for regular monthly
payments of accrued and unpaid interest required under Paragraph 4 hereof and
shall not relieve the obligation of Borrower to make monthly payments of
accrued and unpaid interest under Paragraph 4 hereof. Borrower agrees not to
send Lender any payments of principal and/or interest marked “paid in full”,
“without recourse”, or similar language. If Borrower sends such a payment, such
instructions or conditions by Borrower shall be null and void, of no legal
effect and non-binding on Lender so that Lender may accept said payment without
losing any of Lender’s rights under this Note, and Borrower will remain
obligated to pay any and all amount or amounts owed to Lender. All written
communications concerning disputed amounts, including any check or other
payment instrument that indicates that the payment constitutes “payment in
full” of the amount owed, “without recourse” or similar language or that is
tendered with other conditions or limitations or as full satisfaction of a
disputed amount must be mailed or delivered to: Loan Operations 1400 Market
Street, P.O. Box 1109, Camp Hill, PA 17001-1109.

 

7.             LATE
CHARGE.  If any monthly payment of
accrued and unpaid interest required under Paragraph 4 hereof is 16 days or
more late, Borrower will be charged the greater of: (a) 5% of the
regularly scheduled payment; or (b) $50.00.

 

8.             INTEREST
AFTER DEFAULT.  Upon the occurrence of an
Event of Default, as defined herein, or on the Termination Date, Lender, at its
option, and without notice to Borrower, may, if permitted under applicable law,
increase the interest rate on the outstanding loans and advances on the Revolving
Line of Credit, which have not been repaid, to three (3) percentage points
over the Wall Street Journal Prime Rate. This default interest rate will not
exceed the maximum rate permitted by applicable law.  The Default Rate of Interest as provided for
herein will be computed and calculated on a year consisting of 360 days but
billed and charged for the actual number of days of each month.

 

9.             DEFAULT.

 

9.1.          List.  Each of the following shall
constitute an event of default (“Event of Default”) under this Note:

 

A.            Payment
Default.  Borrower fails to make any
monthly payment of accrued and unpaid interest at the rate(s) set forth in
Paragraph 5 of this Note within fifteen (15) days of being due under this Note
and/or fails to pay in full all outstanding loans and advances on the Revolving
Line of Credit on the Termination Date and all accrued and unpaid interest at
the rate(s) set forth in Paragraph 5 of this Note, as well as all late charges
and fees, costs and expenses, if any, to which Lender is entitled pursuant to
this Note and the Loan Agreement on the Termination Date.

 

B.            Payment Default-Other Obligations.  Borrower fails to pay within fifteen (15)
days of being due any principal, interest and costs due Lender under any
Obligations of Borrower to Lender.

 

C.            Other Defaults.  Borrower fails to comply with or to perform
any Obligations of Borrower within sixty (60) days of the date Borrower is to
perform and/or comply with said Obligations of Borrower other than as provided
for in Paragraphs 9.1.A and 9.1.B hereof.

 

D.            Default in Favor of Third Parties.  Borrower defaults under any Indebtedness to
any third Persons that may materially affect any of Borrower’s property,
Borrower’s ability to repay this Note or ability of Borrower to perform and/or
pay Obligations of Borrower.

 

E.             False Statements.  Any warranty, representation or statement
made or furnished to Lender by Borrower set forth in the Loan Agreement is
false or misleading in any material respect, either now or at the time made or
furnished, or becomes false or misleading at any time thereafter.

 

3

 

F.             Insolvency, etc.  (1) The cessation of Borrower’s and/or
Subsidiary’s business activities; (2) the dissolution or termination of
Borrower’s and/or Subsidiary’s existence as a going business concern and/or
Borrower’s and/or Subsidiary’s corporate existence; (3) the insolvency of
Borrower and/or Subsidiary; (4) the appointment of a receiver, conservator
and/or custodian for all and/or any of Borrower’s and/or Subsidiary’s assets
and/or for Borrower and/or Subsidiary; (5) any assignment for the benefit
of creditors of all and/or any of Borrower’s and/or Subsidiary’s assets;
(6) any type of creditor workout involving Borrower and/or Subsidiary
and/or all and/or any of Borrower’s and/or Subsidiary’s assets; (7) the
commencement of any proceeding under any federal bankruptcy or insolvency laws
by or against Borrower and/or Subsidiary and/or all and/or any of Borrower’s
assets and/or Subsidiary’s assets; (8) the sale and/or liquidation of a
substantial amount of Borrower’s and/or Subsidiary’s assets other than in the
ordinary course of business; (9) the revocation and/or suspension of
Borrower’s and/or Subsidiary’s charter by any state and/or federal department,
agency, bureau, authority, body, subdivision or quasi-government corporation
which regulates the business conducted by Borrower and/or Subsidiary;
(10) merger and/or consolidation of Borrower with any other entity; and/or
(11) any action and/or proceeding by any federal and/or state agency, bureau,
subdivision, department, body, authority, commission or quasi-government
corporation, which regulates the Borrower and/or Subsidiary and/or Borrower’s
and/or Subsidiary’s business, which results in the seizure and/or taking
control of Borrower’s and/or Subsidiary’s business and/or Borrower’s and/or
Subsidiary’s assets and/or which results in the closing and terminating the
business operations of Borrower and/or Subsidiary.

 

G.            Creditor or Forfeiture Proceedings.  Commencement of any creditor, foreclosure,
execution or forfeiture proceedings, whether by judicial proceeding, self-help,
repossession or any other method, by any Person against any of Borrower’s
assets. This includes a garnishment of any of Borrower’s accounts, including
deposit accounts, with Lender. However, this Event of Default shall not apply
if there is a good faith dispute by Borrower as to the validity or
reasonableness of the claim which is the basis of the creditor, foreclosure,
execution or forfeiture proceeding and provided that Borrower:
(1) provides Lender with written notice of the creditor, foreclosure,
execution or forfeiture proceeding; and (2) deposits with Lender monies or
a surety bond for the creditor, foreclosure, execution or forfeiture
proceeding, in an amount, in a form and containing terms and provisions as
required and determined by Lender, in its sole discretion.

 

H.            Change In Ownership.  Any change in ownership of Borrower and/or
Subsidiary.

 

9.2           Nature of Default.

 

A.            An Event of Default shall automatically occur
without the need for Lender

 

to issue any written demand and/or notice to
Borrower.

 

B.            No Event of Default shall be deemed waived by
Lender unless the waiver is in writing and executed by a duly authorized
corporate officer of Lender.

 

C.            No failure of Lender to take any action or
exercise any rights and/or remedies upon the occurrence of an Event of Default
shall constitute a waiver by Lender of any existing dissimilar or future
similar or dissimilar Event of Default on the part of or by Borrower.

 

10.           LENDER’S
RIGHTS.

 

10.1         List.  Upon the occurrence of an
Event of Default, Lender may, after giving such notices as maybe required by
applicable law:

 

A.            Declare the entire unpaid principal balance
on this Note and all accrued unpaid interest immediately due and payable in
full:

 

B.            Cease making any loans and/or advances to
Borrower under the Revolving Line of Credit;

 

4

 

C.            Invoke the default rate of interest as
provided in Paragraph 8 hereof;

 

D.            Exercise all rights and remedies available to
Lender under this Note and/or under the Loan Agreement; and/or

 

E.             Exercise all rights and remedies available to
Lender under the Laws, case decisions of the Commonwealth of Pennsylvania,
United States of America and Rules of Civil Procedure of the Commonwealth
of Pennsylvania and under the Federal Rules of Civil Procedure.

 

10.2.        Nature of Remedies.

 

A.            All remedies are cumulative and the failure
of Lender to exercise one, several or all remedies shall not be deemed an
election of remedies so as to preclude the Lender from subsequently exercising
remedies not originally exercised by Lender.

 

B.            Except as required by the case decisions,
Laws and Rules of Civil Procedure of the Commonwealth of Pennsylvania and
under the Federal Rules of Civil Procedure, Lender shall not be required
to give any notice to Borrower prior to the exercise of any rights and remedies
by Lender.

 

C.            In exercising its rights and remedies, Lender
may proceed against any assets of Borrower, whether pledged to Lender or not,
simultaneously and/or in any order as Lender in its sole discretion deems
advisable.

 

11.           ATTORNEYS’
FEES; EXPENSES.  Upon the occurrence of
an Event of Default, in the event Lender enforces its rights and remedies under
this Note, in the event Borrower files any federal bankruptcy, dissolution,
insolvency or receivership proceeding or any federal bankruptcy, dissolution,
insolvency or receivership proceeding is filed against Borrower, in the event
of any litigation between Lender and Borrower, and/or in the event any federal
and/or state agency, bureau, department, subdivision, commission, body,
authority and/or quasi-government corporation, which regulates the Borrower
and/or Borrower’s business, seizes and/or takes control of Borrower’s business
and/or Borrower’s assets and/or closes and terminates the business operations
of Borrower, Lender shall be entitled to reasonable legal fees and costs in
connection with: (1) the enforcement of the terms and provisions of this
Note; (2) collection of amounts owed by Borrower to Lender under this
Note; (3) any bankruptcy, dissolution, insolvency or receivership
proceeding filed by and/or against Borrower and/or Subsidiary; (4) defense
of any lawsuit filed against Lender by Borrower; (5) execution against
assets of Borrower; and/or (6) any action and/or proceeding by any federal
and/or state agency, bureau, department, commission, body, authority,
subdivision or quasi-government corporation, which regulates the Borrower
and/or Subsidiary and/or Borrower’s business and/or Subsidiary’s business which
results in the seizure and/or taking control of Borrower’s business and/or
Borrower’s assets and/or Subsidiary’s business and/or Subsidiary’s assets
and/or which results in the closing and terminating of the business operations
of Borrower and/or Subsidiary.  Costs and
expenses include but are not limited to Lender’s attorneys’ fees and legal
expenses whether or not there is a lawsuit, including attorneys’ fees and legal
expenses for bankruptcy, dissolution, insolvency or receivership proceedings
(and including efforts to modify or vacate any automatic stay or injunction),
appeals, and any anticipated post-judgment collection services.

 

12.           WAIVERS. 
Borrower hereby waives:

 

12.1         All rights to trial by jury with regards to
any and all issues, matters, actions, causes of action, and/or claims sounding
in contract, law, equity, tort or otherwise, arising directly or indirectly out
of or relating directly or indirectly to the Revolving Line of Credit, this
Note and/or the Loan Agreement, the enforcement and/or to the interpretation of
the Revolving Line of Credit, this Note and/or the Loan Agreement and/or any
action or conduct taken or omitted from being taken by Lender and its present
and former officers, agents, employees, representatives, attorneys and
servants. Lender may file an original counterpart or copy of this
Section of this Note with any court as written evidence of the consent of
Borrower to the waiver of Borrower’s right to a trial by jury.  Borrower hereby acknowledges that Borrower
has had ample opportunity to consult with counsel for Borrower concerning the
impact on Borrower’s legal rights

 

5

 

and
remedies of this waiver and Borrower hereby voluntarily, intelligently and
knowingly waives the right to a trial by jury.

 

12.2             The right to any notice of the occurrence of
a default under this Note.

 

12.3             Benefits and protections of the legal and
equitable doctrines of marshalling of assets and election of remedies.

 

12.4             The right to any notice that Lender has
ceased making advances to Borrower under the Revolving Line of Credit.

 

12.5             The right to any notice prior to Lender
exercising any rights and remedies against Borrower, including but not limited
to right of Lender to accelerate and right to impose the default rate of
interest as provided for in the Note.

 

12.6             Notice of default, dishonor, notice of
dishonor, protest, notice of protest presentment and any and all notices
required under Article 3 of the Uniform Commercial Code as enacted in the
Commonwealth of Pennsylvania.

 

13.           GOVERNING
LAW.  This Note will be governed by,
interpreted, construed and enforced in accordance with federal law and the laws
of the Commonwealth of Pennsylvania. 
This Note has been accepted by Lender in the Commonwealth of
Pennsylvania.

 

14.           CHOICE OF VENUE AND JURISDICTION. 
Borrower consents and agrees that, at the sole discretion of Lender, any
and all legal and equitable proceedings arising directly or indirectly out of
or relating directly or indirectly to the Revolving Line of Credit, this Note
and/or the Loan Agreement, the enforcement and/or to the interpretation of the
Revolving Line of Credit, this Note and/or the Loan Agreement and/or any action
or conduct taken or omitted from being taken by Lender and its present and
former officers, agents, employees, representatives, attorneys and servants
shall be maintained in the Courts of Common Pleas of Cumberland County,
Pennsylvania.  Borrower hereby
voluntarily, intelligently and knowingly consents to personal jurisdiction and
venue in favor of the Courts of Common Pleas of Cumberland County,
Pennsylvania.  Borrower hereby
acknowledges that Borrower has had ample opportunity to consult with counsel
for Borrower concerning the impact on Borrower’s legal rights and remedies of
this consent to venue and jurisdiction. Lender may file an original counterpart
or copy of this Section of this Note with any court as written evidence of
the consent of Borrower to jurisdiction and venue of the Court of Common Pleas
of Cumberland County, Pennsylvania.

 

15.           RIGHT OF SETOFF. 
To the extent permitted by applicable law, Lender reserves a right of
setoff against all Borrower’s accounts with Lender and/or in the possession and
control of Lender (whether checking, savings, or some other account).  This includes all accounts Borrower holds
jointly with someone else and all accounts Borrower may open in the future. However,
this right of set off does not include any trust accounts, escrow accounts,
funds or assets which Borrower holds as a fiduciary and/or which setoff would
be prohibited by law. Borrower authorizes Lender, to the extent permitted by
applicable law, to charge or setoff all sums owing on Obligations of Borrower
against any and all such accounts, and, at Lender’s option, to administratively
freeze all such accounts to allow Lender to protect Lender’s charge and setoff
rights provided in this paragraph.

 

16.           SUCCESSOR INTERESTS.  The terms and provisions of this Note shall
be binding upon Borrower and upon Borrower’s successors and assigns and shall
inure to the benefit of Lender and its successors and assigns.  However, Borrower may not assign this Note or
the rights and privileges set forth in this Note without the prior written
consent of a duly authorized officer of Lender.

 

17.           PARTICIPATIONS. 
Lender may transfer, assign and/or sell participation(s) in this Note,
the Revolving Line of Credit and Loan Agreement at any time without the consent
of Borrower and any requirement on the part of Lender to notify Borrower.

 

6

 

18.           GENERAL PROVISIONS.  Paragraph headings contained herein are for
descriptive purposes only and do not form part of the terms and provisions of
this Note.

 

19.           ENTIRE AGREEMENT.  This Note and the Loan Agreement contain all
of the terms, provisions, covenants and conditions concerning the extension of
the Revolving Line of Credit and there are no terms, provisions, covenants and conditions
concerning the Revolving Line of Credit that are not set forth in this Note and
the Loan Agreement.

 

20.           INTEREST RATE ON JUDGMENT.  In the event any judgment is entered in favor
of Lender and against Borrower on this Note, the interest rate on any judgment
will be the rate provided for in this Note.

 

PRIOR TO
SIGNING THIS NOTE, BORROWER HAS READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS
NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. BORROWER AGREES TO THE
TERMS OF THE NOTE.

 

BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED
COPY OF THIS REVOLVING LINE OF CREDIT PROMISSORY NOTE.

 

THIS NOTE IS GIVEN UNDER SEAL AND IT IS
INTENDED THAT THIS NOTE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED
INSTRUMENT ACCORDING TO LAW.

 

	
   

  	
   

  	
  BORROWER: Frederick County Bancorp, Inc.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ William
  R. Talley, Jr.

  	
  (SEAL)

  	
  By:

  	
  /s/ Martin S.
  Lapera

  	
  (SEAL)

  
	
   

  	
  William R. Talley, Jr., Assistant Secretary

  	
   

  	
  Martin S. Lapera, President

  	
   

  
						

 

 

[AFFIX CORPORATE SEAL]

 

7Exhibit 10.1

 

AMENDMENT TO LEASE

 

THIS AMENDMENT TO LEASE (this “Amendment”) is dated as
of the 11th day of May, 2005, by and between ARE-500
Arsenal Street, LLC, a Delaware limited liability company (“Landlord”)
and Acusphere, Inc., a Delaware
corporation (“Tenant”).

 

 

A.                                   Landlord
and Tenant are parties to that certain Lease, dated as of March 30, 2001
(the “Original Lease”).  Pursuant to the
Original Lease, Landlord agreed to lease to Tenant, and Tenant leased from
Landlord, certain premises located in the building known as 500 Arsenal Street,
Watertown, Massachusetts, as further identified in the Original Lease, subject
to the terms and conditions more particularly set forth in the Original
Lease.  The Original Lease, as amended by
this Amendment, is sometimes referred to herein as the “Lease”.

 

B.                                     Landlord
and Tenant now desire to extend the Base Term of the Lease, and Landlord
desires to permit Tenant to construct certain improvements to the Premises and
to cause other changes to the Lease in accordance with the terms and conditions
set forth in this Amendment.

 

NOW, THEREFORE, for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, and intending to
be legally bound hereby, the parties hereto agree as follows:

 

1.                                       Amended
Definitions.  Commencing on the date
of this Amendment and continuing throughout the Term of this Lease, the
definition of “Base Term” set forth in the Original Lease is hereby deleted and
the following new definition is added to the Lease:

 

	
  Base Term:

  	
   

  	
  Beginning on the Commencement Date and ending on June 30,
  2012.

  

 

2.                                       Base
Term.  Commencing as of the date
hereof, all references in the Lease to “Base Term” shall be deemed to mean the
Base Term as defined in Paragraph 1 of this Amendment.

 

3.                                       Tenant
Improvements.  Landlord has
previously reviewed and approved Tenant’s plans for Tenant’s proposed
additional Tenant Improvements to the Premises. 
To facilitate Tenant’s construction of such Tenant Improvements,
Landlord shall provide to Tenant a tenant improvement allowance (“TI Allowance”)
in an amount not to exceed $270,000.00. 
Such Tenant Improvements shall be constructed and the TI Allowance shall
be disbursed in accordance with a work letter to be entered into by Landlord
and Tenant in substantially the form attached hereto as Exhibit A.

 

4.                                       Broker.  Each party
represents and warrants to the other that it has not dealt with any broker or
person in connection with this Amendment. 
Each party hereby indemnifies and agrees to defend and hold the other
party harmless from and against any and all claims for commission, fee or other
compensation by any person who shall claim to have dealt with such party in
connection with this Amendment and for any and all costs incurred in connection
with such claims, including, without limitation, reasonable attorneys’ fees and
disbursements.

 

5.                                       Miscellaneous.   All other terms and conditions of the
Original Lease, as amended hereby, remain in full force and effect, as so
amended.  All capitalized terms used
herein and not otherwise defined shall have the meanings ascribed to them in
the Original Lease.  The recitals set
forth above are specifically incorporated into the body of this Amendment and
shall be binding upon the parties hereto. 
Except as expressly amended hereby, all of the terms and conditions of
the Lease remain unchanged and in full force and effect.  This Amendment is deemed incorporated into
the Lease by 

 

1

 

reference as of the date hereof; provided, however, in
the event of any conflict or inconsistency between the terms and provisions of
the Lease and the terms and provisions of this Amendment, the terms and
provisions of this Amendment shall govern and control.  This Amendment may be executed in any number
of counterparts with the same effect as if all of the signatures on such
counterparts appeared on one document, and each such counterpart shall be
deemed to be an original.

 

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

 

LANDLORD:

 

 

ARE-500 Arsenal Street, LLC,

a Delaware limited liability company

 

By: Alexandria Real Estate
Equities, L.P., 

a Delaware limited partnership, managing member

 

	
  By: ARE-QRS Corp., general
  partner

  
	
   

  
	
   

  
	
  By: 

  	
  /s/ 

  	
  Jennifer Pappas

  	
   

  
	
  Name:

  	
   

  	
  Jennifer Pappas

  	
   

  
	
  Title:

  	
   

  	
  V.P. and Assistant Secretary

  	
   

  
	
   

  
	
  TENANT:

  
	
   

  
	
  Acusphere, Inc., a
  Delaware corporation

  
	
   

  
	
   

  
	
  By: 

  	
  /s/  

  	
  John F. Thero

  	
   

  
	
  Name:

  	
   

  	
  John F. Thero

  	
   

  
	
  Title:

  	
  Senior Vice President and Chief Financial Officer

  	
   

  
							

 

2

 

Exhibit A

 

WORK LETTER

 

THIS
WORK LETTER dated as of May 11, 2005 (this “Work Letter”)
is made and entered into by and between ARE-500 Arsenal Street, LLC, a
Delaware limited liability company (“Landlord”), and
Acusphere, Inc., a Delaware corporation (“Tenant”),
and is attached to and made a part of the Lease dated as of March 30,
2001, as amended by that certain Amendment to Lease dated as of May 11, 2005
(as so amended, the “Lease”), by and
between Landlord and Tenant.  Any
initially capitalized terms used but not defined herein shall have the meanings
given them in the Lease.

 

1.                                       General Requirements.

 

(a)                                  Tenant’s Authorized Representative.  Tenant designates David Plante and John Thero
(either such individual acting alone, “Tenant’s Representative”)
as the only persons authorized to act for Tenant pursuant to this Work
Letter.  Landlord shall not be obligated
to respond to or act upon any request, approval, inquiry or other communication
(“Communication”) from or on behalf of
Tenant in connection with this Work Letter unless such Communication is in
writing from Tenant’s Representative. 
Tenant may change either Tenant’s Representative at any time upon not
less than 5 business days advance written notice to Landlord.  No period set forth herein for any approval
of any matter by Tenant’s Representative shall be extended by reason of any
change in Tenant’s Representative. 
Neither Tenant nor Tenant’s Representative shall be authorized to direct
Landlord’s contractors in the performance of Landlord’s Work (as hereinafter
defined).

 

(b)                                 Landlord’s Authorized Representative. 
Landlord designates Tim White and Tom Andrews (either such
individual acting alone, “Landlord’s Representative”)
as the only persons authorized to act for Landlord pursuant to this Work
Letter.  Tenant shall not be obligated to
respond to or act upon any request, approval, inquiry or other Communication
from or on behalf of Landlord in connection with this Work Letter unless such
Communication is in writing from Landlord’s Representative.  Landlord may change either Landlord’s
Representative at any time upon not less than 5 business days advance written
notice to Tenant.  No period set forth
herein for any approval of any matter by Landlord’s Representative shall be
extended by reason of any change in Landlord’s Representative.  Landlord’s Representative shall be the sole
persons authorized to direct Landlord’s contractors in the performance of
Landlord’s Work.

 

(c)                                  Architects, Consultants and Contractors.  Landlord and Tenant hereby
acknowledge and agree that Landlord has selected, and Tenant has approved, The
Richmond Group to design and construct the Tenant Improvements.

 

2.                                       Tenant Improvements.

 

(a)                                  Tenant Improvements Defined. 
As used herein, “Tenant Improvements”
shall mean all improvements to the Project desired by Tenant of a fixed and
permanent nature as set forth on the TI Construction Drawings (as hereinafter
defined).  Other than the Tenant
Improvements, Landlord shall not have any obligation whatsoever with respect to
the finishing of the Premises for Tenant’s use and occupancy.

 

(b)                                 Approval and Completion.  Landlord
has previously reviewed and approved Tenant’s plans with regard to the Tenant
Improvements (such plans being referred to herein as the “TI
Construction Drawings”).  Any
changes to the TI Construction Drawings after the date hereof requested by
Tenant shall be processed as provided in Section 4 hereof.

 

3

 

3.                                       Performance of Landlord’s Work.

 

(a)                                  Definition of Landlord’s Work.  As
used herein, “Landlord’s Work” shall mean the
work of constructing the Tenant Improvements.

 

(b)                                 Commencement and Permitting of Landlord’s Work.  Landlord shall commence construction
of the Tenant Improvements upon obtaining a building permit (the “TI Permit”) authorizing the construction of the Tenant
Improvements consistent with the TI Construction Drawings approved by
Tenant.  The cost of obtaining the TI
Permit shall be payable from the TI Fund (as hereinafter defined).  Tenant shall assist Landlord in obtaining the
TI Permit.  If any Governmental Authority
having jurisdiction over the construction of Landlord’s Work or any portion
thereof shall impose terms or conditions upon the construction thereof
which:  (i) are inconsistent with
Landlord’s obligations hereunder, (ii) increase the cost of constructing
Landlord’s Work, or (iii) will materially delay the construction of
Landlord’s Work, Landlord and Tenant shall reasonably and in good faith seek
means by which to mitigate or eliminate any such adverse terms and conditions.

 

(c)                                  Completion of Landlord’s Work.  Landlord
shall substantially complete or cause to be substantially completed Landlord’s
Work in a good and workmanlike manner, in accordance with the TI Permit
subject, in each case, to Minor Variations and normal “punch list” items of a
non-material nature which do not interfere with the use of the Premises (“Substantial Completion”). 
For purposes of this Work Letter, “Minor Variations”
shall mean any modifications reasonably required:  (i) to comply with all applicable Legal
Requirements and/or to obtain or to comply with any required permit (including
the TI Permit); (ii) to comply with any request by Tenant for modifications
to Landlord’s Work; (iii) to comport with good design, engineering, and
construction practices which are not material; or (iv) to make reasonable
adjustments for field deviations or conditions encountered during the
construction of Landlord’s Work.  Tenant
shall be entitled to receive the benefit of all construction warranties and
manufacturer’s equipment warranties relating to equipment installed in the
Premises.  If requested by Tenant,
Landlord shall attempt to obtain extended warranties from manufacturers and
suppliers of such equipment, but the cost of any such extended warranties shall
be borne solely out of the TI Fund. 
Landlord shall diligently pursue any claims arising out of latent
defects in the Project.  Landlord shall
promptly undertake and complete, or cause to be completed, all punch list
items.

 

(d)                                 Selection of Materials, Etc.  Where
more than one type of material or structure is indicated on the TI Construction
Drawings approved by Landlord and Tenant, the option will be within Landlord’s
sole discretion.  As to all building
materials and equipment which Landlord is obligated to supply under this Work
Letter, Landlord shall select the manufacturer thereof in its sole discretion.

 

4.                                       Changes.  Any changes
requested by Tenant to the Tenant Improvements after the date hereof shall be
requested and instituted in accordance with the provisions of this Section 4
and shall be subject to the written approval of Landlord, such approval not to
be unreasonably withheld, conditioned or delayed.

 

(a)                                  Tenant’s Right to Request Changes. 
If Tenant shall request changes to Landlord’s Work (“Changes”), Tenant shall request such Changes by notifying
Landlord in writing in substantially the same form as the AIA standard change
order form (a “Change Request”), which Change
Request shall detail the nature and extent of any such Change.  Such Change Request must be signed by Tenant’s
Representative.  Landlord shall, before
proceeding with any Change, use its best efforts to respond to Tenant as soon
as is reasonably possible with an estimate of: 
(i) the time it will take, and (ii) the architectural and
engineering fees and costs which will be incurred, to analyze such Change
Request (which costs shall be paid from the TI Fund to the extent actually
incurred, whether or not such change is implemented).  Landlord shall thereafter submit to Tenant in
writing, within 5 business days of receipt of 

 

4

 

the Change Request (or such longer period of time as
is reasonably required depending on the extent of the Change Request), an
analysis of the additional cost or savings involved, including, without
limitation, architectural and engineering costs and the period of time, if any,
that the Change will extend the date on which Landlord’s Work will be
Substantially Complete.  Landlord shall
not be liable to Tenant for any delay in Substantial Completion of Landlord’s
Work arising from any such Change.

 

(b)                                 Implementation of Changes.  If
Tenant:  (i) approves in writing the
cost or savings and any delay in Substantial Completion arising from such
Change, and (ii) deposits with Landlord any Excess TI Costs required in
connection with such Change, Landlord shall cause the approved Change to be
instituted.

 

5.                                       Costs.

 

(a)                                  Budget For Tenant Improvements.  Before
the commencement of construction of the Tenant Improvements, Tenant shall
obtain a detailed breakdown, by trade, of the costs incurred or which will be
incurred, in connection with the design and construction of Tenant’s Work (the “Budget”).  The Budget
shall be based upon the TI Construction Drawings approved by Landlord and shall
include a payment to Landlord of administrative rent (“Administrative
Rent”) equal to 3% of the TI Costs (as hereinafter defined) for
monitoring and inspecting the construction of Tenant’s Work, which sum shall be
payable from the TI Fund.  Such
Administrative Rent shall include, without limitation, all out-of-pocket costs,
expenses and fees incurred by or on behalf of Landlord arising from, out of, or
in connection with, such monitoring of the construction of the Tenant
Improvements, and shall be payable out of the TI Fund.  If the Budget is greater than the TI
Allowance, Tenant shall deposit with Landlord the difference, in cash, prior to
the commencement of construction of the Tenant Improvements, for disbursement
by Landlord as described in Section 5(d).

 

(b)                                 TI Allowance. 
Landlord shall provide to Tenant a tenant improvement allowance (“TI Allowance”) in an amount not to exceed $270,000.00.  The
TI Allowance shall be disbursed in accordance with this Work Letter.  Tenant shall have no right to the use or
benefit (including any reduction to Base Rent) of any portion of the TI
Allowance not required for the construction of (i) the Tenant Improvements
described in the TI Construction Drawings approved pursuant to Section 2(b) or
(ii) any Changes pursuant to Section 4.

 

(c)                                  Costs Includable in TI Fund.  The
TI Fund shall be used solely for the payment of design and construction costs
in connection with the construction of the Tenant Improvements, including,
without limitation, the cost of preparing the TI Construction Drawings, all
costs set forth in the Budget, including Landlord’s Administrative Rent, and
the cost of Changes (collectively, “TI Costs”). 
Notwithstanding anything to the contrary contained herein, the TI Fund
shall not be used to purchase any furniture, personal property or other
non-Building System materials or equipment, including, but not be limited to,
biological safety cabinets and other scientific equipment not incorporated into
the Improvements.

 

(d)                                 Excess TI Costs.  It
is understood and agreed that Landlord is under no obligation to bear any
portion of the cost of any of the Tenant Improvements except to the extent of
the TI Allowance.  If at any time and
from time-to-time, the remaining TI Costs under the Budget exceed the remaining
unexpended TI Allowance, Tenant shall deposit with Landlord, as a condition
precedent to Landlord’s obligation to complete the Tenant Improvements, 100% of
the then current TI Cost in excess of the remaining TI Allowance (“Excess TI
Costs”).  If Tenant fails to deposit, or
is late in depositing, any Excess TI Costs with Landlord, Landlord shall have
all of the rights and remedies set forth in the Lease for nonpayment of Rent
(including, but not limited to, the right to interest at the Default Rate and
the right to assess a late charge), and for purposes of any litigation
instituted with regard to such amounts the same 

 

5

 

will be considered Rent.  Such Excess TI Costs, together with the
remaining TI Allowance, is herein referred to as the “TI Fund.”  Funds so deposited by Tenant shall be the
first thereafter disbursed to pay TI Costs. 
Notwithstanding anything to the contrary set forth in this Section 5(d),
Tenant shall be fully and solely liable for TI Costs in excess of the TI
Allowance.  If upon Substantial
Completion of the Tenant Improvements and the payment of all sums due in
connection therewith there remains any undisbursed TI Fund, Tenant shall be
entitled to such undisbursed TI Fund solely to the extent of any Excess TI
Costs deposit Tenant has actually made with Landlord.

 

6.                                       Miscellaneous.

 

(a)                                  Consents.  Whenever
consent or approval of either party is required under this Work Letter, that
party shall not unreasonably withhold, condition or delay such consent or
approval, except as may be expressly set forth herein to the contrary.

 

(b)                                 Modification.  No
modification, waiver or amendment of this Work Letter or of any of its
conditions or provisions shall be binding upon Landlord or Tenant unless in
writing signed by Landlord and Tenant.

 

(c)                                  Counterparts.  This
Work Letter may be executed in any number of counterparts but all counterparts
taken together shall constitute a single document.

 

(d)                                 Governing Law.  This
Work Letter shall be governed by, construed and enforced in accordance with the
internal laws of the state in which the Premises are located, without regard to
choice of law principles of such State.

 

(e)                                  Time of the Essence.  Time
is of the essence of this Work Letter and of each and all provisions thereof.

 

(f)                                    Default.  Notwithstanding
anything set forth herein or in the Lease to the contrary, Landlord shall not
have any obligation to perform any work hereunder or to fund any portion of the
TI Fund during any period Tenant is in Default under the Lease.

 

(g)                                 Severability.  If any
term or provision of this Work Letter is declared invalid or unenforceable, the
remainder of this Work Letter shall not be affected by such determination and
shall continue to be valid and enforceable.

 

(h)                                 Merger.  All
understandings and agreements, oral or written, heretofore made between the
parties hereto and relating to Tenant’s Work are merged in this Work Letter,
which alone (but inclusive of provisions of the Lease incorporated herein and
the final approved constructions drawings and specifications prepared pursuant
hereto) fully and completely expresses the agreement between Landlord and
Tenant with regard to the matters set forth in this Work Letter.

 

(i)                                     Entire Agreement.  This
Work Letter is made as a part of and pursuant to the Lease and, together with
the Lease, constitutes the entire agreement of the parties with respect to the
subject matter hereof.  This Work Letter
is subject to all of the terms and limitation set forth in the Lease, and
neither party shall have any rights or remedies under this Work Letter separate
and apart from their respective remedies pursuant to the Lease.

 

6

 

IN WITNESS WHEREOF, Landlord
and Tenant have executed this Work Letter to be effective on the date first
above written.

 

LANDLORD:

 

 

ARE-500 Arsenal Street, LLC,

a Delaware limited liability company

 

By: Alexandria Real Estate
Equities, L.P., 

a Delaware limited partnership, managing member

 

	
  By: ARE-QRS Corp., general
  partner

  
	
   

  
	
   

  
	
  By: 

  	
  /s/ 

  	
  Jennifer Pappas

  	
   

  
	
  Name:

  	
   

  	
  Jennifer Pappas

  	
   

  
	
  Title:

  	
   

  	
  V.P. and Assistant Secretary

  	
   

  
	
   

  
	
   

  
	
  TENANT:

  
	
   

  
	
  Acusphere, Inc., a
  Delaware corporation

  
	
   

  
	
   

  
	
  By: 

  	
  /s/ 

  	
  John F. Thero

  	
   

  
	
  Name:

  	
   

  	
  John F. Thero

  	
   

  
	
  Title:

  	
  Senior Vice President and Chief Financial Officer

  	
   

  
							

 

7

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