Document:

Amendment No. 1 to Purchase Agreement

    EXHIBIT
      4.3

    

    MTM
      TECHNOLOGIES, INC.

    

    AMENDMENT
      NO. 1

    TO
      

    PURCHASE
      AGREEMENT

    

    This
      Amendment No. 1 (this "Amendment")
      to the
      Purchase Agreement dated December 7, 2004 (the “Purchase
      Agreement”),
      among
      MTM Technologies, Inc., a New York corporation (the "Company"),
      and
      the purchasers listed on Schedule
      I
      thereto,
      each of which is referred to as a "Purchaser",
      and,
      collectively, as the "Purchasers"
      is
      entered into as of March 11, 2005.

    

    Background

    

    The
      Purchase Agreement provides, among other things, that the Company will seek
      approval of its shareholders to the restatement of its Restated Certificate
      of
      Incorporation in the form attached as Exhibit B to the Purchase
      Agreement.

    

    Such
      form
      contained a clerical error in one of its provisions.

    

    The
      Company and the Purchasers desire to correct such provision of such form as
      more
      particularly provided herein.

    

    Capitalized
      terms used herein and not defined shall have the meanings given such terms
      in
      the Purchase Agreement.

    

    NOW,
      THEREFORE, in consideration of the premises, the parties hereto agree as
      follows:

    

    1.  Amendments.

    

    (a)  Section
      B(4)(a)(v)(2)(g) of ARTICLE FOURTH of the Restated Certificate attached as
      Exhibit B to the Purchase Agreement is hereby deleted in its entirety and
      replaced with the following:

     

                “(g)
      the
      issuance of shares in connection with a firm commitment underwritten public
      offering of Common Stock with a nationally recognized investment banking firm
      at
      a price per share offered to the public of at least $5.00 per share of Common
      Stock which results in gross cash proceeds to the Corporation of at least
      $25,000,000;”

    

    2.  Entire
      Agreement.
      This
      Amendment and the Purchase Agreement are to be read together as one instrument.
      The Purchase Agreement shall remain in full force and effect, except as modified
      hereby.

    

    3.  Governing
      Law.
      This
      Amendment is made pursuant to, and shall be governed by and construed in
      accordance with, the laws of the State of New York, other than provisions
      thereof relating to conflicts of law.

    

    4.  Counterparts.
      This
      Amendment may be executed in any number of counterparts, each of which shall
      be
      considered an original and which shall together constitute one
      instrument.

    

    5.  Headings.
      The
      titles and subtitles used in this Amendment are used for convenience only and
      are not to be considered in construing or interpreting this
      Amendment.

    

    [Remainder
      of this page intentionally blank]

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    IN
      WITNESS WHEREOF, the parties have executed this Amendment as of the date first
      above written.

     

    
      	 	
              The
                Company:

               

              MTM
                TECHNOLOGIES, INC.

               

               

            
	 	
              By:

            	
              /s/
                Francis J. Alfano

            
	 	 	
              Name: Francis
                J. Alfano

              Title:  Chief
                Executive Officer

            
	 	 	
               

               

            
	 	
              The
                Purchasers:

               

              PEQUOT
                PRIVATE EQUITY FUND III, L.P.

               

            
	 	
              By:

            	
              Pequot
                Capital Management, Inc.,

              its
                Investment Manager

               

            
	 	
              By:

            	
              /s/
                Aryeh Davis

            
	 	 	
              Name: Aryeh
                Davis

              Title:  General
                Counsel

            
	 	 	
               

               

            
	 	
              PEQUOT
                OFFSHORE PRIVATE EQUITY PARTNERS III, L.P.

               

            
	 	
              By:

            	
              Pequot
                Capital Management, Inc.,

              its
                Investment Manager

               

            
	 	
              By:

            	
              /s/
                Aryeh Davis

            
	 	 	
              Name: Aryeh
                Davis

              Title:  General
                Counsel

            
	 	 	
               

               

            
	 	
              CONSTELLATION
                VENTURE CAPITAL II, L.P.

               

            
	 	
              By:

            	
              Constellation
                Ventures Management II, LLC 

              Its
                General Partner

               

            
	 	
              By:

            	
              /s/
                Clifford Friedman

            
	 	 	
              Name: Clifford
                Friedman

              Title:  Senior
                Managing Director

            
	 	 	
               

               

            
	 	
              CONSTELLATION
                VENTURE CAPITAL OFFSHORE II, L.P.

               

            
	 	
              By:

            	
              Constellation
                Ventures Management II, LLC 

              Its
                General Partner

               

            
	 	
              By:

            	
              /s/
                Clifford Friedman

            
	 	 	
              Name: Clifford
                Friedman

              Title:  Senior
                Managing Director

            

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	 	
                THE
                  BSC EMPLOYEE FUND VI, L.P.

                 

              
	 	
                By:

              	
                Constellation
                  Ventures Management II, LLC 

                Its
                  General Partner

                 

              
	 	
                By:

              	
                /s/
                  Clifford Friedman

              
	 	 	
                Name: Clifford
                  Friedman

                Title:  Senior
                  Managing Director

              
	 	 	
                 

                 

              
	 	
                CVC
                  II PARTNERS, LLC

                 

              
	 	
                By:

              	
                The
                  Bear Stearns Companies Inc.

                Its
                  Managing Member

                 

              
	 	
                By:

              	
                /s/
                  Clifford Friedman

              
	 	 	
                Name: Clifford
                  Friedman

                Title:  Senior
                  Managing DirectorExhibit 10.1 - Agreement of Lease

    Exhibit
      10.1

     

    AGREEMENT
      OF LEASE

     

    Between
      

     

    

     

    Venture
      Hackensack Holding, Inc.,

     

    as
      Landlord,

     

    and

     

    Caprius,
      Inc.

     

    as
      Tenant

     

     

    Dated:
      January 1, 2006

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    TABLE
      OF CONTENTS

     

    
      	 	
               

              ARTICLE
                1 - BASIC LEASE TERMS

               

            	 
	
              1.1

            	
              Basic
                Lease Terms

            	
              1

            
	 	
               

              ARTICLE
                2 - LEASED PREMISES

               

            	 
	
              2.1

            	
              Description

            	
              3

            
	 	
               

              ARTICLE
                3 - TERM

               

            	 
	
              3.1

            	
              Commencement/Expiration

            	
              3

            
	 	
               

              ARTICLE
                4 - RENT AND SECURITY DEPOSIT

               

            	 
	
              4.1

            	
              Fixed
                Rent

            	
              3

            
	
              4.2

            	
              Additional
                Rent

            	
              4

            
	
              4.3

            	
              Payment
                of Rent

            	
              4

            
	
              4.4

            	
              Security
                Deposit

            	
              5

            
	 	
               

              ARTICLE
                5 - USE

               

            	 
	
              5.1

            	
              Permitted
                Use

            	
              5

            
	
              5.2

            	
              Dispensing
                Food, etc

            	
              5

            
	
              5.3

            	
              Certain
                Uses

            	
              5

            
	
              5.4

            	
              Parking

            	
              6

            
	 	
               

              ARTICLE
                6 - OCCUPANCY

               

            	 
	
              6.1

            	
              Move-In
                Day

            	
              6

            
	 	
               

              ARTICLE
                7 - TAX AND OPERATING ADJUSTMENT

               

            	 
	
              7.1

            	
              Annual
                Adjustment

            	
              7

            
	
              7.2

            	
              Time
                of Payment

            	
              8

            
	
              7.3

            	
              Base
                Real Estate Taxes Adjustment

            	
              9

            
	
              7.4

            	
              Tax
                Refund

            	
              10

            
	 	
               

              ARTICLE
                8 - ASSIGNMENT AND SUBLETTING

               

            	 
	
              8.1

            	
              No
                Assignment

            	
              10

            
	
              8.2

            	
              Request
                for Consent

            	
              11

            
	
              8.3

            	
              Take
                Back

            	
              12

            
	
              8.4

            	
              Certain
                Rights of Landlord

            	
              12

            
	
              8.5

            	
              Bankruptcy

            	
              12

            
	 	
               

              ARTICLE
                9 - REPAIRS AND MAINTENANCE

               

            	 
	
              9.1

            	
              Condition
                of Premises to be Delivered

            	
              13

            
	
              9.2

            	
              Tenant’s
                Duties

            	
              13

            
	
              9.3

            	
              Alterations/Consent

            	
              14

            
	
              9.4

            	
              Alterations
                Belong to Landlord

            	
              14

            
	
              9.5

            	
              Governmental
                Approvals

            	
              14

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              ARTICLE
                10 - REQUIREMENTS OF LAW AND FIRE UNDERWRITERS

               

            
	
              10.1

            	
              Notice
                of Violation

            	
              15

            
	
              10.2

            	
              Compliance
                with Law

            	
              15

            
	
              10.3

            	
              ISRA
                and Environmental Laws.

            	
              15

            
	
              10.4

            	
              Landlord’s
                Right to Cure

            	
              17

            
	 	
               

              ARTICLE
                11 - NON-LIABILITY AND INDEMNIFICATION

               

            	 
	
              11.1

            	
              Landlord
                Not Liable

            	
              18

            
	
              11.2

            	
              Landlord
                Excused

            	
              18

            
	
              11.3

            	
              Indemnification

            	
              18

            
	
              11.4

            	
              Notice
                of Fire

            	
              19

            
	
              11.5

            	
              Additional
                Indemnification

            	
              19

            
	
              11.6

            	
              Insurance

            	
              19

            
	
              11.7

            	
              Mutual
                Waiver of Subrogation

            	
              19

            
	 	
               

              ARTICLE
                12 - DAMAGE BY FIRE OR OTHER CASUALTY

               

            	 
	
              12.1

            	
              Total/Partial
                Destruction

            	
              20

            
	 	
               

              ARTICLE
                13 - ELECTRICITY

               

            	 
	
              13.1

            	
              Tenant
                Electric Service

            	
              20

            
	
              13.2

            	
              Cost
                of Electricity

            	
              22

            
	
              13.3

            	
              Tenant
                Not To Exceed Capacity

            	
              22

            
	
              13.4

            	
              Electric
                Meters

            	
              22

            
	
              13.5

            	
              Electric
                Survey

            	
              22

            
	
              13.6

            	
              Change
                in Electric Rates

            	
              23

            
	 	
               

              ARTICLE
                14 - SERVICES PROVIDED BY LANDLORD

               

            	 
	
              14.1

            	
              Elevators

            	
              23

            
	
              14.2

            	
              Heating,
                Ventilating and Air-Conditioning

            	
              23

            
	
              14.3

            	
              Further
                As to Heating and Air-Conditioning

            	
              23

            
	
              14.4

            	
              Hot
                and Cold Water

            	
              24

            
	
              14.5

            	
              Building
                Directory

            	
              24

            
	
              14.6

            	
              Office
                Cleaning

            	
              24

            
	
              14.7

            	
              Interruption
                of Services

            	
              24

            
	
              14.8

            	
              Holidays

            	
              24

            
	
              14.9

            	
              Card
                Access

            	
              25

            
	 	
               

              ARTICLE
                15 - QUIET ENJOYMENT

               

            	 
	
              15.1

            	
              Quiet
                Enjoyment

            	
              25

            
	 	
               

              ARTICLE
                16 - EVENTS OF DEFAULT

               

            	 
	
              16.1

            	
              Nonpayment
                of Rent

            	
              25

            
	
              16.2

            	
              Vacation

            	
              25

            
	
              16.3

            	
              Assignment,
                etc., of Lease

            	
              25

            
	
              16.4

            	
              Act
                of Bankruptcy

            	
              26

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              16.5

            	
              Noncompliance

            	
              26

            
	 	
               

              ARTICLE
                17 - REMEDIES UPON DEFAULT

               

            	 
	
              17.1

            	
              All
                Remedies Available

            	
              26

            
	
              17.2

            	
              Occupancy
                Ceases

            	
              26

            
	
              17.3

            	
              Distraint

            	
              26

            
	
              17.4

            	
              Right
                of Reentry

            	
              27

            
	
              17.5

            	
              Rent
                and Other Charges

            	
              27

            
	
              17.6

            	
              Injunctive
                Relief

            	
              27

            
	
              17.7

            	
              Right
                of Redemption Waived

            	
              27

            
	
              17.8

            	
              No
                Waiver

            	
              28

            
	
              17.9

            	
              Property
                Deemed Abandoned

            	
              28

            
	 	
               

              ARTICLE
                18 - SUBORDINATION AND ESTOPPEL CERTIFICATE

               

            	 
	
              18.1

            	
              Subordination

            	
              28

            
	
              18.2

            	
              Estoppel
                Certificate

            	
              29

            
	 	
               

              ARTICLE
                19 - CONDEMNATION

               

            	 
	
              19.1

            	
              Total
                Taking

            	
              29

            
	
              19.2

            	
              Rental
                Apportioned

            	
              29

            
	
              19.3

            	
              Award
                Belongs to Landlord

            	
              29

            
	 	
               

              ARTICLE
                20 - ACCESS

               

            	 
	
              20.1

            	
              Access

            	
              30

            
	 	
               

              ARTICLE
                21 - LANDLORD’S LIABILITY LIMITED

               

            	 
	
              21.1

            	
              Landlord’s
                Liability Limited

            	
              30

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	 	
               

              ARTICLE
                22 - SURRENDER OF LEASED PREMISES; HOLDOVER TENANCY

               

            	 
	
              22.1

            	
              Surrender
                of Leased Premises

            	
              30

            
	
              22.2

            	
              Holdover
                Tenancy

            	
              31

            
	 	
               

              ARTICLE
                23 - ASBESTOS

               

            	 
	
              23.1

            	
              Presence
                of Asbestos

            	
              31

            
	 	
               

              ARTICLE
                24 - RELOCATION

               

            	 
	
              24.1

            	
              Landlord’s
                Right to Relocate

            	
              31

            
	 	
               

              ARTICLE
                25 - ADDITIONAL PROVISIONS

               

            	 
	
              25.1

            	
              Tenant’s
                Reimbursement

            	
              32

            
	
              25.2

            	
              Landlord’s
                Consent

            	
              32

            
	
              25.3

            	
              Mortgagee
                Protection Clause

            	
              33

            
	
              25.4

            	
              Broker
                Representation

            	
              33

            
	
              25.5

            	
              Limitation
                on Signs

            	
              33

            

    

     

    
      	
              25.6

            	
              Approval
                of Lettering

            	
              34

            
	
              25.7

            	
              Loudspeakers

            	
              34

            
	
              25.8

            	
              Telephone
                Equipment

            	
              34

            
	
              25.9

            	
              Washrooms

            	
              34

            
	
              25.10

            	
              Rules
                and Regulations

            	
              34

            
	
              25.11

            	
              Notices

            	
              34

            
	
              25.12

            	
              Headings

            	
              34

            
	
              25.13

            	
              Entire
                Contract

            	
              34

            
	
              25.14

            	
              Provisions
                Severable

            	
              35

            
	
              25.15

            	
              Governing
                Law

            	
              35

            
	
              25.16

            	
              Successorship

            	
              35

            
	
              25.17

            	
              Assignment
                of Furniture and Equipment

            	
              35

            
	 	
               

              ARTICLE
                26 - OPTION TO EXTEND

               

            	 
	
              26.1

            	
              Option
                to Extend

            	
              35

            
	
              26.2

            	
              Option
                Personal to Original Tenant

            	
              38

            
	 	
               

              ARTICLE
                27 - EXPANSION OPTIONS

               

            	 
	
              27.1

            	
              Expansion
                Options

            	
              38

            
	
              27.2

            	
              Expansion
                Options Subordinate to Existing Leases

            	
              38

            
	
              27.3

            	
              Notice
                of Availability of Expansion Space

            	
              38

            
	
              27.4

            	
              Conditions
                of Exercise of Expansion Options

            	
              39

            
	
              27.5

            	
              Waiver
                of Expansion Option

            	
              39

            
	
              27.6

            	
              Terms
                of Expansion Lease

            	
              40

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    AGREEMENT
      OF LEASE

     

    THIS
      LEASE,
      made as
      of the 1st
      day of
      January, 2006, by and between VENTURE
      HACKENSACK HOLDING, INC.,
      a New
      Jersey corporation, having an office at c/o Forest Green Management Corporation,
      26 Court Street, Suite 300, Brooklyn, New York, 11242, herein called “Landlord,”
and CAPRIUS,
      INC.,
      a
      Delaware corporation, having an office at One Parker Plaza, 12th
      Floor,
      Fort Lee, New Jersey 07024, herein called “Tenant”;

     

    W
      I T N E S S E T H

     

    The
      parties hereto, in consideration of the terms, covenants and conditions herein
      contained, do mutually agree as follows:

     

    ARTICLE
      1
      - BASIC LEASE TERMS

     

    1.1  Basic
      Lease Terms.
      In
      addition to other terms elsewhere defined in this Lease, the following terms
      whenever used in this Lease shall have only the meanings set forth in this
      section, unless such meanings are expressly modified, limited or expanded
      elsewhere herein.

     

    
      	
              (a)

               

            	
              Leased
                Premises:
                Approximately 4,177 rentable square feet of space on the fourth
                (4th)
                floor of the Building (as hereinafter defined), shown by diagonal
                hatching
                on the plan attached hereto as Exhibit “A” and designated as Suite
                400.

               

            
	
              (b)

               

            	
              Building:
                The building known as One University Plaza, Hackensack, New
                Jersey.

               

            
	
              (c)

               

            	
              Commencement
                Date:
                January 1, 2006.

               

            
	
              (d)

               

            	
              Term:
                Five (5) years and nine (9) months, plus any partial month in which
                the
                Commencement Date occurs.

               

            
	
              (e)

               

            	
              Fixed
                Rent:

               

            
	 	
              Months
                1 to 9:

               

            	
              $89,805.50
                per annum, payable in monthly installments of $7,483.79.

               

            
	 	
              Months
                10 to 21:

               

            	
              $91,894.00
                per annum, payable in monthly installments of $7,657.83.

               

            
	 	
              Months
                22 to 33:

               

            	
              $93,982.50
                per annum, payable in monthly installments of $7,831.88.

               

            
	 	
              Months
                34 to 45:

               

            	
              $96,071.00
                per annum, payable in monthly installments of $8,005.92.

               

            

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    

    
      	 	
              Months
                46 to 57:

               

            	
              $98,159.50
                per annum, payable in monthly installments of $8,179.96.

               

            
	 	
              Months
                58 to 69:

               

            	
              $100,248.00
                per annum, payable in monthly installments of $8,354.00.

               

            
	
              (f)

               

            	
              Security
                Deposit:

               

            	
              $16,486.03.

               

            
	
              (g)

               

            	
              Tenant
                Electric Amount: $6,265.50
                per annum, payable in monthly installments of $522.13, subject to
                Sections
                13.5 and 13.6 of this Lease.

               

            
	
              (h)

               

            	
              Pro
                Rata Share:
                3.32%.

               

            
	
              (i)

               

            	
              Base
                Real Estate Taxes:
                The Real Estate Taxes (as hereinafter defined) assessed for the calendar
                year ended December 31, 2006, subject to adjustment pursuant to Section
                7.3 below.

               

            
	
              (j)

               

            	
              Base
                Operating Expenses:
                The Operating Expenses (as hereinafter defined) incurred for the
                calendar
                year ended December 31, 2006.

               

            
	
              (k)

               

            	
              Parking
                Spaces:
                Thirteen (13) parking spaces.

               

            
	
              (l)

               

            	
              Notices:
                All notices required to be given to Landlord or Tenant shall be addressed
                to Landlord or Tenant as follows:

               

            
	 	
              To
                Landlord:

               

            	
              Venture
                Hackensack Holding, Inc.

              c/o
                Forest Green Management Corp.

              26
                Court Street, Suite 300

              Brooklyn,
                New York 11242

              Attn:
                Joseph Schachter

               

            
	 	
              With
                a copy to:

               

            	
              Cole,
                Schotz, Meisel, Forman & Leonard, P.A..

              Court
                Plaza North

              25
                Main Street

              Hackensack,
                New Jersey 07602

              Attn:
                Michael Sternlieb, Esq.

               

            
	 	
              To
                Tenant before occupancy:

               

            	
              Caprius,
                Inc.

              One
                Parker Plaza, 12th
                Floor

              Fort
                Lee, New Jersey 07024

              Attn:
                Jonathan Joels

               

            

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    
      	 	
              To
                Tenant after occupancy:

               

            	
              Caprius,
                Inc.

              One
                University Plaza, Suite 400

              Hackensack,
                New Jersey 07601

              Attn:
                Jonathan Joels

               

            
	 	
              With
                a copy to:

               

            	
              Kleeblatt,
                Galler, Abramson &

              Zakim,
                L.L.C.

              Court
                Plaza North

              25
                Main Street

              Hackensack,
                New Jersey 07602

              Attn:
                Robert Kleeblatt, Esq.

               

            
	
              (m)

               

            	
              Exhibits:
                The following Exhibits attached to this Lease are incorporated herein
                and
                made a part hereof:

               

            
	 	
              Exhibit
                “A”:

            	
              Leased
                Premises

            
	 	
              Exhibit
                “B”:

            	
              Declaration
                of Commencement Date

            
	 	
              Exhibit
                “C”:

            	
              Landlord’s
                Work

            
	 	
              Exhibit
                “D”:

            	
              Cleaning
                Specifications

            
	 	
              Exhibit
                “E”:

            	
              Rules
                and Regulations

            
	 	
              Exhibit
                “F”:

            	
              Furniture
                and Equipment

            
	 	
              Exhibit
                “G”:

               

            	
              Bill
                of Sale 

               

            

    

    ARTICLE
      2
      - LEASED PREMISES

     

    2.1   Description.
      Landlord leases to Tenant, and Tenant leases from Landlord, for the Term, at
      the
      rental, and subject to the terms and conditions of this Lease, the Leased
      Premises as defined in subparagraph (a) of Section 1.1. 

     

    ARTICLE
      3
      - TERM

     

    3.1   Commencement/Expiration.
      The
      term (the “Term”) of the Lease shall be for the period set forth in subparagraph
      (d) of Section 1.1, to commence on the Commencement Date as defined in
      subparagraph (c) of Section 1.1. Reference is made to the form of Declaration
      of
      Commencement Date (the “Declaration”) attached hereto as Exhibit “B”. After the
      Commencement Date, Landlord shall complete the Declaration and deliver the
      completed Declaration to Tenant. Within five (5) days after delivery of the
      completed Declaration, Tenant shall execute and return the Declaration to the
      Landlord. Failure to execute the Declaration shall not affect the commencement
      or expiration of the Term. 

     

    ARTICLE
      4
      - RENT AND SECURITY DEPOSIT

     

    4.1   Fixed
      Rent.
      As
      Fixed Rent beginning on the Commencement Date and continuing throughout the
      Term, Tenant shall pay to Landlord at the office of Forest Green Management
      Corporation, 26 Court Street, Suite 300, Brooklyn, New York, 11242, by check,
      subject to collection, drawn to the order of Venture Hackensack Holding, Inc.,
      or at such other place and in such other manner as Landlord may from time to
      time designate,

     

    
      
        
        

      

      
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    monthly
      installments, in United States Dollars, without previous demand therefor in
      advance on the first business day of each month regardless of the date on which
      the Term commences, in the amounts set forth in subparagraph (e) of Section
      1.1.
      If the Commencement Date falls on other than the first day of the month, Fixed
      Rent for the partial month shall be prorated. Simultaneously with the execution
      of this Lease, Tenant has paid a first full month’s Fixed Rent and Tenant
      Electric Amount (as defined in Section 13.2) to Landlord, which shall be applied
      to the first full month’s Fixed Rent and Tenant Electric Amount when
      due.

     

    As
      a rent
      concession to Tenant, Landlord agrees to waive the installment of Fixed Rent
      accruing for the first (1st)
      two (2)
      full calendar months of the Term; provided, however, that on the first
      (1st)
      calendar day of each such month, Tenant shall not be in default of any of the
      obligations under this Lease after any applicable notice and beyond and
      applicable grace period provided herein.

     

    4.2   Additional
      Rent.
      Tenant
      shall also pay as Additional Rent any and all such other sums of money as shall
      become due to Landlord pursuant to the terms and provisions hereof including
      but
      not limited to tenant improvements authorized by and to be paid by
      Tenant.

     

    4.3   Payment
      of Rent.
      Tenant
      shall pay the Fixed Rent and Additional Rent herein reserved promptly as and
      when the same shall become due and payable, without demand therefor and without
      any abatement, deduction or set-off whatsoever except as expressly provided
      in
      this Lease. If Tenant shall fail to pay the Fixed Rent and Additional Rent
      within ten (10) days following the due date of any such payment, and if Landlord
      agrees to accept any such late payment, then in the event of such late payment,
      Tenant agrees to pay to Landlord a late charge equal to five (5%) percent of
      the
      amount of the late payment, which late charge shall be due and payable on the
      date the next installment of rent is due. The late charge is not intended as
      a
      penalty but is intended to compensate Landlord for the extra expense it will
      incur to send out late notices and handle other matters resulting from the
      late
      payment. In addition, interest shall accrue and shall be due and payable on
      any
      monetary payments (including but not limited to Fixed and Additional Rent)
      due
      under this Lease from thirty (30) days after due date until full payment at
      an
      annual rate of four (4%) percent due above the annual prime rate of Fleet Bank,
      Hackensack, New Jersey, or its successor, as it changes from time to time
      (interest rate herein shall change on the same dates as changes in the prime
      rate), or if said rate under the circumstances then prevailing shall not be
      lawful, then at the maximum lawful rate permitted. The foregoing shall be in
      addition to any other right or remedy which may be available to Landlord in
      the
      event of default by Tenant. 

     

    
      
        
        

      

      
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    4.4   Security
      Deposit.
      Tenant
      has this day deposited with Landlord in the amount set forth in subparagraph
      (f)
      of Section 1.1 as security (the “Security Deposit”) for the payment of rent
      hereunder and the full and faithful performance by Tenant of the covenants
      and
      conditions on the part of Tenant to be performed. Said sum shall be returned
      to
      Tenant, without interest, sixty (60) days after the expiration of the Term,
      provided that Tenant has fully and faithfully performed all such covenants
      and
      conditions and is not in arrears in Fixed Rent and/or Additional Rent. During
      the Term, Landlord may, if Landlord so elects, have recourse to such security,
      to make good any default by the Tenant, in which event Tenant shall, on demand,
      promptly restore said security to its original amount. In the event of a sale
      of
      the Building, Landlord shall have the right to assign or transfer said security,
      for the benefit of Tenant, to any subsequent owner of the Leased Premises,
      in
      which case the assignee shall become liable for the repayment thereof as herein
      provided, and the assignor shall be deemed to be released by Tenant from all
      liability to return such security. This provision shall be applicable to every
      alienation or change in title and shall in no way be deemed to permit Landlord
      to retain the security after termination of the Landlord’s ownership of the
      Building. Tenant shall not mortgage, encumber or assign said security without
      the written consent of Landlord. Landlord shall not be required to maintain
      the
      security deposit in segregated or separate accounts and may commingle the
      security deposit with its general funds.

     

    ARTICLE
      5
      - USE

     

    5.1   Permitted
      Use.
      The
      Leased Premises, or any part thereof, shall not be used by anyone except Tenant,
      and shall be used or permitted to be used for no use other than the following:
      general office use.

     

    5.2   Dispensing
      Food, etc.
      Tenant
      will not, without the prior written consent of the Landlord, permit the
      dispensing, preparation, or serving of any beverages and/or foods within the
      Leased Premises, except that this shall not prohibit the preparation and
      consumption of hot and cold beverages and light meals for employees including
      by
      use of a microwave oven within the Leased Premises nor the consumption by
      employees of light meals prepared outside of the Leased Premises.

     

    5.3   Certain
      Uses.
      Tenant
      acknowledges and agrees with Landlord that the Building should be maintained
      and
      preserved as a prestigious and first-class office building and that its special
      character arising from it being adjacent to a university campus should be
      specifically protected and preserved. Tenant therefore represents that it is
      not
      leasing the Leased Premises, and it will not use such Leased Premises, for
      any
      purpose other than that provided in Section 5.1 hereof. Tenant further agrees
      that the Leased Premises, or any part thereof, shall not be used as an
      educational facility of any type (except that Tenant may conduct training
      classes with respect to its products for its employees in the Leased Premises)
      including correspondence schools, an employment agency, a model agency, a spa,
      a
      health, physical fitness or exercise salon, a small loan office, a real estate
      brokerage, an office of any practitioner of the healing arts, a telemarketing
      or
      boiler-room operations, or an 

     

    
      
        
        

      

      
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    office
      for any other profession or business that by its nature tends to generate excess
      customer traffic or require excessive personnel, or any other use which Landlord
      in good faith determines will or is likely to demean the character of the
      Building or its environment. Landlord’s refusal to consent to the assignment of
      this Lease, or the subletting of the Leased Premises, or any part thereof,
      for
      any such prohibited use shall not constitute an unreasonable refusal to consent
      to any such assignment or subletting pursuant to the provisions of Article
      8
      hereunder. Landlord and Tenant specifically agree that Landlord’s leasing of any
      portion of the Building for any of the foregoing prohibited uses shall not
      constitute or be deemed to constitute a waiver of Landlord’s right to prohibit
      Tenant from assigning or subletting the Leased Premises or any part thereof
      for
      any such prohibited use.

     

    5.4   Parking.
      Tenant
      shall, at all times during the Term, be entitled to the use of the number of
      parking spaces in Landlord’s parking lot (the “Parking Lot”), which is adjacent
      to the Building, set forth in subparagraph (k) of Section 1.1. Such parking
      spaces shall be solely for the use of Tenant, its employees and business
      invitees. Tenant agrees that it will not permit its employees and business
      invitees to occupy, at any time, more than thirteen (13) parking spaces in
      the
      Parking Lot in the aggregate, or to occupy any parking space in the Parking
      Lot
      designated as reserved for any tenant other than Tenant, or which is otherwise
      restricted. Tenant shall take such action, at the request of Landlord, as may
      be
      reasonably necessary to insure that Tenant and its employees and business
      invitees do not violate the foregoing parking restrictions. The use of parking
      spaces in the Parking Lot by Tenant and its employees and business invitees
      shall be subject to such reasonable rules and regulations as may be established
      by Landlord from time to time, including all signs and notices posted by
      Landlord in the Parking Lot or roadways leading thereto. Landlord hereby
      expressly reserves the right, from time to time, to change the location, area
      or
      configuration of the Parking Lot; to change the location and arrangement of
      parking spaces in the Parking Lot, including parking spaces designated for
      Tenant; to build multi-story parking facilities; and to close temporarily all
      or
      any portion of the Parking Lot for the purpose of making repairs, improvements
      or changes thereto. Landlord shall have the right, at any time, to convert
      the
      entire Parking Lot, with the exception of spaces designated for use by visitors,
      handicapped persons, delivery and emergency vehicles, etc., to a “first-come,
      first served” basis, in which event no tenant of the Building, including Tenant,
      shall thereafter have any parking spaces designated for its exclusive use.
      Tenant agrees, on behalf of itself, its employees and business invitees, to
      look
      solely to insurance, if any, maintained by Tenant, for any recovery for injury
      to any person, or loss or damage to any property, including without limitation
      theft of or from a vehicle, fire or collision, by or through the acts or
      omissions of any person or any other cause. 

     

    ARTICLE
      6
      - OCCUPANCY

     

    6.1   Move-In
      Day.
      Tenant
      must provide Landlord with reasonable advance notice of the date Tenant intends
      to move into the Leased Premises. Personnel working on the job, on behalf of
      moving contractor, must be members of the appropriate union. On weekdays, the
      moves must be finished by 4:00 P.M., or there will be an overtime charge of
      $25.00 per hour until 6:00 P.M. From 6:00 P.M., there will be an overtime charge
      of $35.00 per 

     

    
      
        
        

      

      
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    hour,
      until 9:00 P.M. From 9:00 P.M., there will be an overtime charge of $45.00
      per
      hour. On weekends, the move must be finished by 1:00 P.M. Saturday, or there
      will be an overtime charge of $35.00 an hour until 6:00 P.M. Saturday. After
      6:00 P.M. Saturday, there will be an overtime charge of $60.00 per hour.
      Landlord will attempt to provide one (1) elevator for the exclusive use of
      Tenant while the move is being made. Tenant will be held responsible for any
      damage caused to the Building by moving contractor’s acts. Tenant shall see that
      moving contractor’s personnel take proper precautionary steps.

     

    ARTICLE
      7
      - TAX AND OPERATING ADJUSTMENT

     

    7.1   Annual
      Adjustment.
      For the
      Lease Year commencing January 1, 2007 and for each Lease Year or portion
      thereafter within the Term, Tenant will pay as Additional Rent its pro rata
      share, as set forth in subparagraph (h) of Section 1.1, of any Increase in
      Real
      Estate Taxes assessed against the land and Building plus any Increase in
      Operating Expenses. As used herein:

     

    (a) “Increase”
      shall mean the difference between the Real Estate Taxes assessed and/or
      Operating Expenses incurred for any Lease Year and the Base Real Estate Taxes
      and/or the Base Operating Expenses;

     

    (b) “Operating
      Expenses” shall mean the total of the amount of all expenses paid or incurred by
      Landlord in operating the land and Building, including but not limited to the
      cost of maintenance; cleaning; repairs to the Building and Parking Lot
      (including resurfacing of parking areas); landscaping (including replacement
      of
      trees, shrubs, etc.); trash removal; snow removal; supplies; painting; wall
      and
      window washing; maintenance and service contracts; labor (including all wages,
      salaries, fringe benefits, pensions, unemployment compensation insurance, social
      security taxes and other taxes that may be levied against Landlord upon such
      wages and salaries); fuel; utilities (including electricity not otherwise billed
      directly to Tenants); insurance of all kinds carried by Landlord and applicable
      to the land and Building; personal property taxes; accounting and legal fees;
      sales, use or service taxes incurred in connection with the operation of the
      Building; reasonable management fees; security costs; replacements of worn
      out
      equipment; the cost of capital improvements that reduce the cost of operations
      of the land and Building; the cost of governmentally mandated safety devices;
      the cost of capital improvements mandated by the American Disabilities Act
      and
      other costs and expenses deemed to be operating expenses in accordance with
      generally accepted accounting principles, but shall exclude restoration and
      repair costs covered by insurance proceeds. In determining the amount of
      Operating Expenses during all or part of any Lease Year, including the base
      year, if less than ninety-five (95%) percent of the Building shall have been
      occupied by tenants and fully used by them during said year or part thereof,
      Operating Expenses shall be increased by an amount equal to the like operating
      expenses which would normally be expected to be incurred had such occupancy
      been

     

    
      
        
        

      

      
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    ninety-five
      (95%) percent and has such full utilization been made during the entire Lease
      Year or base year. If, during any Lease Year, including the base year, any
      part
      of the Building is leased to a tenant (a “Special Tenant”) who, in accordance
      with the terms of its lease, provides its own janitorial or other services
      or is
      not otherwise required to pay a pro rata share of any Increase in Operating
      Expenses, Operating Expenses for such Lease Year or base year shall be increased
      by an amount equal to the estimated cost of such janitorial or other services
      had Landlord furnished such services to the Special Tenant or if Landlord had
      included such costs as “operating expenses” as defined in the Special Tenant’s
      lease;

     

    (c) “Real
      Estate Taxes” shall be governmental real property taxes (or any other tax
      hereafter enacted as a substitute or replacement therefor or any part thereof)
      and also shall include taxes on gross rents, sewer rents, water rents and any
      special, ordinary or extraordinary assessments and governmental levies against
      the land and building of which the Leased Premises are a part. Real Estate
      Taxes
      shall not include income, franchise, gift, inheritance or sales taxes; provided,
      however, that if, due to a future change in the method of taxation, any such
      tax
      shall be levied against Landlord in substitution for, or in lieu of, or in
      addition to any tax which would otherwise constitute Real Estate Taxes, such
      tax
      shall be deemed to be included within Real Estate Taxes for purposes
      hereof.

     

    (d) “Lease
      Year” shall mean the period from January 1st to December 31st;

     

    7.2   Time
      of Payment.
      Landlord shall, during the first quarter of each Lease Year (or as soon
      thereafter as reasonably practicable), commencing with the Lease Year beginning
      January 1, 2007, submit to Tenant a statement (the “Estimated Statement”)
      showing Landlord’s estimate of Operating Expenses and Real Estate Taxes for such
      Lease Year, together with Landlord’s calculation of estimated Additional Rent
      for Increases in Operating Expenses and Real Estate Taxes for such Lease Year.
      Commencing on the first business day of the month following the delivery by
      Landlord of the Estimated Statement, and continuing on the first business day
      of
      each month thereafter, Tenant shall pay an amount equal to 1/12 of the estimated
      Additional Rent shown on the Estimated Statement. In each subsequent Lease
      Year,
      if the amount of estimated Additional Rent from the beginning of such subsequent
      Lease Year through and including the month in which Landlord delivers the
      Estimated Statement for such subsequent Lease Year is less than or greater
      than
      the amount of estimated Additional Rent actually due for such period, Tenant,
      in
      the event of an underpayment, shall pay to Landlord the amount of such
      difference on the first business day of the month immediately following the
      delivery of the Estimated Statement for such subsequent Lease Year, or Landlord,
      in the event of an overpayment, shall credit the amount of such difference
      against the amount due as Additional Rent on the first business day of the
      month
      immediately following the delivery of the Estimated Statement for such
      subsequent Lease Year. Landlord shall, after the expiration of each such Lease
      Year, submit to Tenant a statement (the “Final Statement”) showing the actual
      amount of Operating Expenses and Real Estate Taxes accrued for such Lease Year,
      together with Landlord’s calculation of the 

     

    
      
        
        

      

      
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    actual
      Additional Rent for Increases in Operating Expenses and Real Estate Taxes for
      such Lease Year. If the amount of the actual Additional Rent for any Lease
      Year,
      as shown on the Final Statement, exceeds the amount of the estimated Additional
      Rent paid by Tenant for that Lease Year, Tenant shall pay to Landlord, within
      thirty (30) days of Tenant’s receipt of the Final Statement, an amount equal to
      the actual Additional Rent, as shown on the Final Statement, less the estimated
      Additional Rent paid by Tenant for that Lease Year. If the amount of the actual
      Additional Rent for any Lease, as shown on the Final Statement, is less than
      the
      amount of the estimated Additional Rent paid by Tenant for that Lease Year,
      Landlord shall apply an amount equal to the estimated Additional Rent paid
      by
      Tenant, less the actual Additional Rent for that Lease Year to the amount of
      estimated Additional Rent due for the next Lease Year. Even though the Term
      has
      expired and Tenant has vacated the Leased Premises, when the final determination
      is made of Additional Rent due pursuant to this Article 7 for the Lease Year
      in
      which this Lease terminates, Tenant shall immediately pay any Additional Rent
      due and, conversely, any overpayment shall be immediately rebated by Landlord
      to
      Tenant. For sixty (60) days after the submission of the Final Statement to
      Tenant, Landlord shall make available its records and reasonable detail
      supporting Landlord’s calculation of the amount of actual Additional Rent for
      Increases in Operating Expenses and Real Estate Taxes as set forth in the Final
      Statement for examination at reasonable times by Tenant and its authorized
      representatives. The Final Statement shall be conclusive and binding on Tenant,
      unless objected to in writing by Tenant within sixty (60) days following the
      delivery of the Final Statement. Should this Lease commence on any day other
      than the first day of a Lease Year or terminate on any day other than the last
      day of a Lease Year, any Additional Rent payable hereunder on account of an
      Increase in Real Estate Taxes or an Increase in Operating Expenses for any
      such
      partial Lease Year shall be the amount of Additional Rent that would have been
      due for such entire Lease Year, multiplied by a fraction, the numerator of
      which
      shall be the number of days within the term of the Lease actually falling within
      such Lease Year and the denominator of which shall be three hundred sixty-five
      (365).

     

    7.3   Base
      Real Estate Taxes Adjustment.
      Base
      Real Estate Taxes shall be determined from the amount determined to be legally
      due for the calendar year ending December 31, 2006 as a result of legal
      proceedings or otherwise. In the event the Base Real Estate Taxes have not
      been
      finally determined by legal proceedings or otherwise at the time of computation
      of the Increase in Real Estate Taxes for any Lease Year, the actual amount
      of
      Base Real Estate Taxes paid by Landlord for the calendar year ending December
      31, 2006 shall be used to calculate any excess thereof. Upon a final
      determination of the Base Real Estate Taxes by legal proceedings or otherwise,
      Landlord shall deliver to Tenant a statement setting forth the amount of the
      Base Real Estate Taxes as finally determined and a recalculation of the Increase
      in Real Estate Taxes of each Lease Year affected thereby, and showing the
      computation of any adjustment due to Landlord or to Tenant by reason thereof.
      The amount of any such adjustment shall be paid by the party responsible
      therefor to the other party within forty-five (45) days from the delivery of
      such statement.

     

    
      
        
        

      

      
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    7.4   Tax
      Refund.
      If
      Landlord shall receive any tax refund in respect to any Lease Year, Landlord
      shall deliver to Tenant a statement setting forth the net amount of such refund,
      after deducting any reasonable and customary expenses incurred in obtaining
      such
      refund, and a recalculation of the Increase in Real Estate Taxes for such Lease
      Year reflecting such net refund, and showing the amount of the adjustment,
      if
      any, due to Tenant by reason thereof. The amount of any such adjustment shall
      be
      paid by Landlord to Tenant within forty-five (45) days from the delivery of
      such
      statement. Any such expenses incurred by Landlord in contesting the validity
      or
      the amount of the assessed valuation of the property or of any Real Estate
      Taxes
      for any Lease Year, to the extent not offset by a tax refund, shall be included
      as an item of Real Estate Taxes for the Lease Year in which such contest shall
      be finally determined. 

     

    ARTICLE
      8
      - ASSIGNMENT AND SUBLETTING

     

    8.1   No
      Assignment.
      (a) The
      Leased Premises shall not be let, underlet or assigned by Tenant, in whole
      or in
      part, nor shall permission be given for the use of any part thereof by any
      person or entity other than Tenant, without the written consent of Landlord
      first endorsed thereon, which consent shall not be unreasonably withheld or
      delayed, but which shall be subject to the provisions of Section 5.3 hereof.
      Any
      attempt to let, underlet or assign the Lease Premises without the prior written
      consent of Landlord shall be null and void. Such written consent, or any waiver
      thereof, in one or more instances, shall not be deemed a waiver of the necessity
      of written consent in subsequent instances. Under no circumstances shall Tenant
      mortgage, hypothecate or otherwise use this Lease as security. Any attempt
      to
      mortgage, hypothecate or otherwise use this Lease as security shall be null
      and
      void. Any transfer of this Lease by merger, consolidation or liquidation, or
      any
      change in beneficial ownership of Tenant, whether the result of a single
      transaction or series of transactions, shall constitute an assignment. For
      purposes of this section, “change in beneficial ownership” shall mean a change
      in the beneficial ownership of more than fifty (50%) percent of (a) the
      outstanding voting stock of Tenant, in the case of a corporation; (b) the
      partnership interests of Tenant, in the case of a general partnership; (c)
      the
      general partnership interests of Tenant, in the case of a limited partnership;
      or (d) the membership interests of Tenant, in the case of a limited liability
      company. The restrictions contained in the foregoing sentence shall not,
      however, be applicable to transfers of shares of a corporation of all of the
      outstanding voting stock which is listed on a national securities exchange
      (as
      defined in the Securities Exchange Act of 1934, as amended). For purposes of
      this section, stock ownership shall be determined in accordance with the
      principles set forth in Section 544 of the Internal Revenue Code, and the term
      “voting stock” shall refer to shares of stock regularly entitled to vote for the
      election of the directors of the corporation.

     

    (b) The
      restrictions contained in Section 8.1(a), and the provisions of Sections 8.2
      and
      8.3, shall not apply to transactions with a corporation into or with which
      Tenant is merged or consolidated or to which all of substantially all of
      Tenant’s assets are transferred or to a corporation which controls or is
      controlled by Tenant or is under common control with Tenant, provided that
      in
      the event of any such merger, consolidation or transfer 

     

    
      
        
        

      

      
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    (i)
      the
      successor to Tenant has a net worth computed in accordance with generally
      accepted accounting principles at least equal to the net worth of the Tenant
      named herein on the date of this Lease; and (ii) proof reasonably satisfactory
      to Landlord of such net worth shall have been delivered to Landlord not less
      than ten (10) days prior to the effective date of such transaction.

     

    8.2   Request
      for Consent.
      Tenant
      shall give Landlord fifteen (15) business days’ written notice of its intention
      to assign this Lease or sublet all or any portion of the Leased Premises
      (“Notice of Intention”), which notice shall include a copy of the proposed
      assignment, agreement or sublease and, if not stated therein, the names and
      addresses and nature of the business of the proposed assignee or subtenant
      and
      its proposed use of the Leased Premises, the terms of the transaction, the
      date
      on which the proposed assignment or sublease is to become effective, a summary
      of plans and specifications, if any, revising the floor layout of the Leased
      Premises, together with sufficient financial information with respect to the
      proposed assignee or subtenant to enable Landlord to determine its financial
      condition. Such Notice of Intention shall be given to Landlord in accordance
      with Section 25.11 hereof. In no event shall Tenant offer to assign this Lease
      or sublet all or any portion of the Leased Premises to any person or entity
      which has negotiated with Landlord for the leasing of space in the Building
      within six (6) months of the proposed offer by Tenant. Within said fifteen
      (15)
      business days Landlord shall notify Tenant in writing of its determination
      with
      respect to requested assignment or sublease and the election set forth in
      Section 8.3 hereof. Within said fifteen (15) business days, Landlord shall
      have
      the right to withhold consent to the proposed sublease or assignment (i) in
      the
      event same is prohibited by the terms of Section 5.3 hereof, or (ii) the
      assignee’s or subtenant’s financial condition in the judgment of Landlord is not
      comparable to that of Tenant, or (iii) if the proposed subtenant or assignee
      is
      a present tenant of the Landlord or within the previous year had been a tenant
      in the Building, or (iv) if the quantity or location of the space proposed
      to be
      sublet or assigned is inappropriate in the judgment of Landlord, or (v) if
      Tenant is offering to sublet or assign space at a rate that is below the then
      market rate being charged for space of like quantity by the Landlord, or (vi)
      the business of the proposed assignee or subtenant as determined by its federal
      North American Industry Classification System code number would make it subject
      to the provisions of ISRA. In the event Landlord does not respond to Tenant’s
      Notice of Intention within said thirty (30) day period, does not exercise its
      election as set forth in Section 8.3 hereof or does consent to the assignment
      or
      sublease, Tenant may thereafter assign this Lease or sublet all or any portion
      of the Leased Premises to the same party and on the same terms as set forth
      in
      the notice. On or before the effective date of the assignment or sublease,
      Tenant shall send an executed original of the assignment or sublease to
      Landlord. In the event any such assignment or sublease is executed, the assignee
      or subtenant shall assume and agree to be bound by all the terms, covenants,
      conditions, provisions and agreements of this Lease for the period covered
      by
      the assignment or sublease. Such assumption agreement shall be in writing in
      a
      form satisfactory to Landlord, and delivered to Landlord within five (5) days
      prior to the commencement of the occupancy set forth in the assignment or
      sublease. The consent by Landlord to any assignment or sublease shall not,
      nor
      shall it be deemed to, relieve or release the assigning Tenant from

     

    
      
        
        

      

      
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    liability
      for the full and faithful performance of all the terms, covenants, provisions
      and conditions required to be performed under this Lease by “Tenant”. In the
      event Landlord consents to any such subletting or assignment, Tenant shall
      pay
      to Landlord, monthly, as Additional Rent, fifty (50%) percent of the amount
      of
      rent received by Tenant from any such sublessee or assignee in excess of the
      Fixed and Additional Rent, as from time to time adjusted in accordance with
      Article 7 hereof, after appropriate provision has been made for the payment
      of
      broker’s commissions incurred in connection with such subletting or assignment
      and the recovery by Tenant of reasonable fit-up costs actually expended by
      Tenant in connection with any such subletting or assignment. 

     

    8.3   Take
      Back.
      The
      parties further agree that in lieu of Landlord giving its written consent to
      a
      sublease or assignment, where required, Landlord may elect to recapture all
      of
      the Leased Premises in the event of a proposed assignment of the Lease or that
      portion of the Leased Premises that Tenant proposed to sublet in the event
      of a
      proposed sublease (the “Recapture Space”) for the purposes of entering into a
      direct lease with the proposed sublessee or assignee or obtaining the Recapture
      Space for Landlord’s own use. If Landlord elects to recapture the Recapture
      Space, Tenant shall vacate and surrender the Recapture Space by not later than
      the date set forth in Tenant’s Notice of Intention as the date on which the
      proposed sublease or assignment was to become effective. If Landlord elects
      to
      recapture the Recapture Space, Landlord shall release Tenant from any further
      obligation under this Lease with respect to the Recapture Space, except for
      the
      payment of Fixed Rent, Additional Rent and other charges due to Landlord with
      respect to the Recapture Space and except for Tenant’s obligations to indemnify,
      defend and hold Landlord harmless as set forth in Sections 10.3, 11.3, 11.5
      and
      22.1 of this Lease, as of the date Tenant vacates and surrenders the Recapture
      Space. 

     

    8.4   Certain
      Rights of Landlord.
      In the
      event any assignment, sublease, use or occupancy of the Leased Premises by
      any
      party other than Tenant, whether or not in violation of this Article 8, Landlord
      shall have the right, in the event of a default by Tenant under this Lease,
      to
      accept from any assignee, subtenant or any other party claiming a right to
      the
      interest of Tenant under his Lease or who occupies any part of the Leased
      Premises the payment of Fixed Rent and Additional Rent and/or the performance
      of
      any other obligation of Tenant under this Lease. Such acceptance shall not
      be
      deemed a waiver by Landlord of the breach of this Lease by Tenant nor a
      recognition by Landlord that any such assignee, subtenant, claimant or occupant
      has succeeded to the right of Tenant hereunder, nor a release by Landlord of
      Tenant from further performance by Tenant of its obligations under this Lease.
      The net amount of any Fixed Rent and Additional Rent collected from any such
      assignee, subtenant, claimant or occupant shall be applied by Landlord to the
      Fixed Rent and Additional Rent to be paid hereunder.

     

    8.5   Bankruptcy.
      If
      pursuant to the Federal Bankruptcy Code (or any similar law hereafter enacted
      having the same general purpose), Tenant is permitted to assign this Lease
      notwithstanding the restrictions contained in this Lease, adequate assurance
      of
      future performance by an assignee expressly permitted under such Code shall
      be
      deemed to mean 

     

    
      
        
        

      

      
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    the
      deposit of additional Security Deposit in an amount equal to the sum of one
      (1)
      year’s Fixed Rent plus an amount equal to the Additional Rent for the calendar
      year preceding the year in which such assignment is intended to become
      effective, which deposit shall be held by Landlord as part of the Security
      Deposit for the remaining term of this Lease as provided in Section 4.4 of
      this
      Lease.

     

    ARTICLE
      9
      - REPAIRS AND MAINTENANCE

     

    9.1   Condition
      of Premises to be Delivered.
      Tenant
      acknowledges and agrees that the Leased Premises shall be delivered to Tenant
      at
      the beginning of the term “AS IS,” in the condition and state of repair existing
      as of the date of this Lease (except that Landlord shall deliver the Leased
      Premises to Tenant free of any subtenancies) and Landlord shall have no
      obligation to make any improvements, alterations, or decorations, or to perform
      any other work in or with respect to the Leased Premises. Tenant has inspected,
      and has had the opportunity to have an architect, engineer, contractor or other
      representative of Tenant inspect, the Leased Premises on the date of this Lease.
      Tenant has not relied on any statement, representation or undertaking, written
      or oral, by or on the behalf of Landlord with respect to the
      foregoing.

     

    Notwithstanding
      the foregoing, as soon as reasonably practicable after the Commencement Date,
      Landlord shall perform the work set forth on Exhibit “C” attached hereto
      (“Landlord’s Work”). Landlord shall use commercially reasonable efforts to
      complete Landlord’s Work on or before January 21, 2006; provided, however, that
      in the event Landlords’ Work is not completed on or before such date, this Lease
      shall remain in full force and effect and Tenant shall have no claim against
      Landlord with respect thereto. Landlord agrees to use reasonable efforts,
      without, however, extraordinary expense, to perform Landlord’s Work in a manner
      that which will minimize any disruption to Tenant’s business. Landlord shall be
      under no obligation to perform Landlord’s Work on weekends or after normal
      business hours, but Landlord may, in Landlord’s discretion, perform a portion of
      Landlord’s Work during such times if possible without incurring additional
      expense. Tenant agrees that it shall move all furniture, furnishings, equipment
      and other property away from the areas of the Leased Premises in which Landlord
      is performing Landlord’s Work so as to provide Landlord’s contractors with
      sufficient space in which to perform Landlord’s Work. Prior to the completion of
      Landlord’s Work, Tenant will use its best efforts to accommodate completion of
      such work and will not interfere with Landlord’s contractors. Tenant agrees to
      such limitations of its use and occupancy of the Leased Premises during the
      performance of Landlord’s Work, and acknowledges and agrees that such
      limitations shall not constitute an eviction of Tenant or a breach of Landlord’s
      covenant of quiet enjoyment. Tenant further agrees that Tenant shall not claim
      any reduction in or abatement of rent, or any damages or offsets against rent,
      as a result of such limitation. 

     

    9.2   Tenant’s
      Duties.
      Tenant
      shall take good care of the Leased Premises and any and all fixtures therein,
      and shall be responsible for any injury, damage, or breakage done by the Tenant
      or the Tenant’s agents, servants, and invitees and, at the end of the Term or
      earlier 

     

    
      
        
        

      

      
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    termination
      of the Lease, shall quit and surrender said premises in the same condition
      as
      existed on the Commencement Date, reasonable wear and tear excepted, and with
      all personal property not owned by Landlord and debris removed and with the
      Leased Premises in “broom clean” condition. Tenant, at Tenant’s expense, shall
      make all alterations and repairs to the Leased Premises required by the
      Americans With Disabilities Act, except Landlord, at Landlord’s expense, will
      make all such alterations and repairs which are required on the Commencement
      Date.

     

    9.3   Alterations/Consent.
      Tenant
      shall make no alterations, changes, additions or improvements in the Leased
      Premises without the written consent of the Landlord, which consent shall not
      be
      unreasonably withheld. Notwithstanding the foregoing, Tenant shall have no
      right
      to make any alterations, changes, additions or improvements to the electrical
      and heating, ventilating, air-conditioning systems or structural members in
      the
      Leased Premises. Any such required alterations, changes, additions or
      improvements to the electrical or HVAC systems shall be made exclusively by
      Landlord’s contractors based on plans and specifications prepared by Tenant and
      approved by Landlord’s engineers at Tenant’s cost and expense.

     

    9.4   Alterations
      Belong to Landlord.
      All
      alterations, additions and improvements made by either party upon the Leased
      Premises shall become the property of Landlord and shall remain upon and be
      surrendered with the Leased Premises as part thereof, at the expiration or
      termination of the Lease; except that at such expiration or termination, Tenant
      shall have the right to remove and retain as Tenant’s own property, any
      additions or improvements made by Tenant or at Tenant’s sole expense, except for
      carpeting, provided that Tenant shall repair any damage caused by such removal
      and shall restore the Leased Premises to the same or as good condition as
      existed immediately before such additions or improvements were made. Tenant
      shall, if requested by Landlord, remove any such interior changes, alterations,
      additions and improvements at the expiration of the Term and restore the Leased
      Premises to the condition they were in at the beginning of the Term; provided,
      however, that Tenant shall not be required to remove or restore the Tenant
      Improvement Work described in Exhibit “C”, or any alterations, additions or
      improvements for which Landlord has given its consent pursuant to Section 9.3
      hereof, unless Landlord had advised Tenant, at the time of such consent, that
      restoration or removal would be required with respect to all or a portion of
      such alterations, additions or improvements.

     

    9.5   Governmental
      Approvals.
      Tenant
      shall, before making any alterations, additions, installations, or improvements,
      at its expense, obtain all permits, approvals and certificates required by
      any
      governmental or quasi-governmental bodies and (upon completion) certificates
      of
      final approval thereof and shall deliver promptly duplicates of all such
      permits, approvals and certificates to Landlord, and Tenant in connection with
      such work agrees to carry and will cause Tenant’s contractors and subcontractors
      to carry such Worker’s Compensation, general liability, personal and property
      damage insurance as Landlord may require. Tenant agrees that any alterations,
      additions or installations shall be undertaken exclusively by contractors whose
      employees are members of appropriate unions. 

     

    
      
        
        

      

      
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    If
      any
      construction lien or notice of unpaid balance is filed against the Leased
      Premises or the Building for work claimed to have been done for, or materials
      furnished to, Tenant, whether or not done pursuant to this article, the same
      shall be discharged by Tenant within twenty (20) days thereafter, at Tenant’s
      expense, by filing the bond required by law, or in such other manner
      satisfactory to Landlord.

     

    ARTICLE
      10
      - REQUIREMENTS OF LAW AND FIRE UNDERWRITERS

     

    10.1   Notice
      of Violation.
      Tenant
      shall give prompt notice to Landlord of any notice it receives of the violation
      of any law or requirement of public authority, or from the Board of Fire
      Underwriters.

     

    10.2   Compliance
      with Law.
      Tenant,
      at its own cost and expense, shall promptly execute and comply with any
      statutes, ordinances, rules, orders, regulations and requirements of the
      federal, state, or municipal government, and of any of their departments or
      bureaus, which may be applicable to the Leased Premises by reason of any act
      or
      conduct on the part of Tenant, or by reason of the character of its occupancy
      of
      the Leased Premises; and Tenant shall promptly correct and abate any such
      violation caused by its acts, at its own cost and expense. Tenant shall also
      promptly comply with and execute all rules, orders or regulations of the Board
      of Fire Underwriters for the prevention of fires or the risk thereof, in
      Landlord’s building where such rules, orders, or regulations are made applicable
      by any act or conduct of Tenant, or by the character of its occupancy of the
      Leased Premises.

     

    10.3   ISRA
      and Environmental Laws.

     

    A.   Tenant
      shall, at Tenant’s own expense, comply with the Industrial Site Recovery Act,
      N.J.S.A. 13:1K-6 et seq., and the regulations promulgated thereunder (“ISRA”).
      Tenant shall, at Tenant’s own expense, make all submissions to, provide all
      information to, and comply with all requirements of, the New Jersey Department
      of Environmental Protection or its replacement or similar department, agency,
      bureau or division (“NJDEP”). Should any division of NJDEP determine that a
      cleanup plan be prepared and that a cleanup be undertaken because of any spills
      or discharges of hazardous substances or wastes at the Building or land in
      or on
      which the Leased Premises are located (the “premises”) which were caused by
      Tenant or its officers, employees, agents, contractors or invitees and which
      occur during the Term, then Tenant shall, at Tenant’s own expense, prepare and
      submit the required plans and financial assurances, and carry out the approved
      plans. Tenant’s obligations under this paragraph shall arise if there is any
      closing, terminating or transferring of operations of an industrial
      establishment at the premises or a sale or transfer of ownership of the premises
      by the Landlord, all pursuant to ISRA, or if there has been a spill or discharge
      which is Tenant’s responsibility. At no expense to Landlord, Tenant shall
      promptly provide all information requested by Landlord for preparation of
      documents supporting an application for a determination by the NJDEP of
      non-applicability of ISRA to Tenant or submission of a negative declaration
      to
      the NJDEP and shall promptly sign and submit such documents when requested
      by
      Landlord. Tenant 

     

    
      
        
        

      

      
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    shall
      indemnify, defend and save harmless Landlord from all fines, suits, procedures,
      claims and actions of any kind arising out of or in any way connected with
      any
      spills or discharges of hazardous substances or wastes at the premises which
      are
      Tenant’s responsibility and which occur during the Term, and from all reasonable
      expenses incurred for legal, engineering and expert fees, and from all fines,
      suits, procedures, claims and actions of any kind arising out of Tenant’s
      failure to provide all information, make all submissions and take all actions
      required by ISRA or any division of NJDEP concerning ISRA or any other federal
      or state environmental law. Tenant’s obligations and liabilities under this
      paragraph shall continue so long as Landlord remains responsible for compliance
      with ISRA or any other federal or state environmental law regarding any spills
      or discharges of hazardous substances or wastes at the premises which occur
      during the Term, as a result of the acts of Tenant or its officers, employees,
      agents, invitees or contractors. Tenant’s failure to abide by the terms of this
      paragraph shall be restrainable by injunction. Tenant’s obligations to comply
      with ISRA, and all other federal and state environmental laws, as provided
      in
      this Section 10.3, shall apply only to those acts of Tenant or its officers,
      employees, agents, contractors or invitees for which ISRA or the other laws,
      rules and regulations referred to in this Section 10.3 requires compliance,
      and
      Tenant will have no obligation if such acts are those of Landlord or other
      tenants in the Building; however, Tenant will be obligated to supply Landlord
      with, and execute such affidavits as may be reasonably required, such reasonable
      information as Landlord may need in order to permit Landlord to comply with
      ISRA
      and other environmental laws, rules and regulations not resulting from Tenant’s
      acts.

     

    B.   Tenant
      shall promptly supply to Landlord all reports and notices made by Tenant
      pursuant to the Hazardous Substance Discharge-Reports and Notices Act, N.J.S.A.
      13:1K-15 et seq. and the regulations promulgated thereunder (“Reports and
      Notices Act”).

     

    C.   Tenant
      shall promptly supply Landlord with any notices, correspondence and submissions
      made by Tenant to NJDEP, the United States Environmental Protection Agency
      (EPA), the United States Occupational Safety and Health Administration (OSHA),
      or any other local, state or federal authority which requires submission of
      any
      information concerning environmental matters or hazardous wastes or
      substances.

     

    D.   As
      a
      condition precedent to Tenant’s right to sublease the premises or to assign the
      Lease, Tenant shall have received from the NJDEP either (i) a non-qualified
      approval of Tenant’s negative declaration or (ii) a non-applicability letter,
      for which Tenant shall promptly apply pursuant to ISRA. If this condition shall
      not be satisfied, then Landlord shall have the right to withhold consent to
      sublease or assignment.

     

    E.   Tenant
      further agrees to implement and execute all of the provisions of this paragraph
      in a timely manner so as to coincide with the termination of this Lease or
      to
      coincide with the vacating of the Leased Premises by Tenant at any time during
      the Term.

     

    
      
        
        

      

      
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    F.   In
      the
      event Tenant is responsible for any spills or discharges pursuant to this
      Section 10.3, Tenant further agrees to make application to the NJDEP for a
      remediation agreement in the event that Landlord shall seek to sell or transfer
      ownership of the premises. In making such an application, Tenant agrees that
      it
      shall furnish a remediation funding source, pursuant to N.J.A.C.
      7:26C-1
et
      seq.,
      which
      would guarantee the implementation of any potential cleanup at the Leased
      Premises or the premises, as required by NJDEP, and to further diligently
      prosecute such application for a remediation agreement, which shall include
      execution of any and all documents necessary in connection with that
      application. As with all other aspects of any ISRA application by Tenant
      respecting Tenant’s use and occupancy of the Leased Premises, Tenant shall bear
      all costs in connection with same, and perform all other acts necessary or
      required by the NJDEP in order to obtain a remediation agreement.

     

    G.   In
      the
      event Tenant shall have failed to comply in any respect with the terms and
      conditions of this Section 10.3 including failing to obtain final ISRA clearance
      of the Leased Premises or the premises as of the date of expiration of this
      Lease, then upon such failure to comply, it shall be deemed the Tenant has
      remained in possession of the Leased Premises, and shall be considered as a
      holdover tenant as provided in Section 22.2 hereof. These rights are in addition
      to any other rights and remedies the Landlord may have under law.

     

    H.   Simultaneously
      with the execution of this Lease, Tenant has given to Landlord an affidavit
      of
      an officer or principal of Tenant (“Environmental Affidavit”), setting forth
      Tenant’s federal North American Industry Classification System code number and
      its primary business activity and a detailed description of the operation and
      processes Tenant will undertake at the Leased Premises, organized in the form
      of
      a narrative report, including a description and quantification of hazardous
      substances and wastes generated, manufactured, refined, transported, treated,
      stored, handled or disposed of at the Leased Premises. Following the
      Commencement Date, Tenant shall notify Landlord by way of an Environmental
      Affidavit as to any changes in Tenant’s operation, federal North American
      Industry Classification System code number and its primary business activity
      or
      use and generation of hazardous substances and wastes, by way of a supplemental
      Environmental Affidavit. Tenant shall also supplement and update the
      Environmental Affidavit on each January 1st during the Term. Nothing herein
      shall be construed as permitting Tenant to use the Leased Premises for any
      purpose other than as originally intended and set forth in
      Article 5.

     

    10.4   Landlord’s
      Right to Cure.
      In the
      event that Tenant shall fail or neglect to do or perform any of the matters
      required by this Article, then Landlord or its agents after notice to the Tenant
      as prescribed in Article 17 of this Lease, and after Tenant’s failing to remedy
      such failure or neglect within the time periods set forth in Article 17 hereof,
      may enter the Leased Premises and comply with any and all of said statutes,
      ordinances, rules, orders, regulations or requirements at the cost and expense
      of Tenant and, in case of Tenant’s failure to pay therefor, the cost and expense
      thereof shall be due and payable to Landlord five (5) 

     

    
      
        
        

      

      
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    business
      days after Tenant’s receipt of a statement setting forth the amount due and, if
      unpaid, such amount shall be added to the next month’s rent and be due and
      payable as such, or Landlord may deduct the same from the balance of any sum
      remaining in Landlord’s hands, in addition to any other remedy Landlord may have
      hereunder by reason of such default on the part of Tenant.

     

    ARTICLE
      11
      - NON-LIABILITY AND INDEMNIFICATION

     

    11.1   Landlord
      Not Liable.
      Neither
      Landlord nor its agents shall be liable for any damage to property of Tenant
      entrusted to employees of the Building nor to any property, goods, or things
      contained in the Leased Premises or stored in the basement or other part of
      the
      Building, or in the Parking Lot, unless such injury or damage is due to gross
      negligence or intentional misconduct on the part of Landlord’s servants or
      agents. Except also as the same may be attributable solely to the gross
      negligence or intentional misconduct of Landlord, its servants or agents,
      Landlord shall not be liable for any injury or damage to persons or property
      in
      the Building or to the business of Tenant, or any interruption thereof,
      resulting from theft, burglary, explosion, wind or accident, falling plaster,
      steam, gas, electricity, water, rain or snow, leakage from any part of the
      Building or from pipes, appliances, or plumbing works in the Building or from
      the street or subsurface thereof or from any other source, or from dampness,
      or
      from damage occasioned by workmen engaged in making repairs or alterations
      in or
      upon the Building or land on which it is located, or from damage by other
      tenants or persons in the Building, or for interference with the light or other
      incorporeal hereditaments, or caused by operations in the construction of any
      public or quasi-public work, or for any other cause of whatsoever
      nature.

     

    11.2   Landlord
      Excused.
      Except
      as otherwise expressly provided in this Lease, this Lease and the obligations
      of
      Tenant hereunder shall be in no way affected, impaired or excused because
      Landlord is unable to fulfill, or is delayed in fulfilling, any of its
      obligations under this Lease by reason of strike, other labor trouble,
      governmental pre-emption or priorities in connection with a national or other
      public emergency or shortages of fuel, supplies or labor resulting therefrom,
      or
      other cause beyond Landlord’s control.

     

    11.3   Indemnification.
      Tenant
      shall indemnify and save harmless Landlord from, and shall reimburse Landlord
      as
      Additional Rent for all expenses, damages, or fines incurred or suffered by
      Landlord by reason of any breach, violation, or non-performance by Tenant,
      or
      Tenant’s servants, employees or agents, of any covenant or provision of this
      Lease, or by reason of damage or injury to persons or property caused by
      Tenant’s moving property in or out of the Building, or by the installation or
      removal of furniture or other property of Tenant, or arising out of the
      occupancy or use by Tenant of the Leased Premises, or the Building or of the
      Parking Lot, or any part thereof, or from any other cause due to the
      carelessness, negligence or improper conduct of Tenant or Tenant’s servants or
      agents.

     

    
      
        
        

      

      
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    11.4   Notice
      of Fire.
      Tenant
      shall give notice to Landlord in case of fire or accident occurring in the
      Leased Premises, or of any defect or condition of disrepair in the Leased
      Premises, or in any fixtures or equipment forming a part thereof.

     

    11.5   Additional
      Indemnification.
      Tenant
      shall indemnify and hold harmless Landlord from and against any and all claim
      or
      damage, direct or indirect, to the Building, or to the property of Landlord
      therein, or to the person or property of others than Landlord, caused by
      Tenant’s acts or arising out of any use or occupation of the Leased Premises by
      Tenant, or its servants or agents, whether such use or occupation be authorized
      or unauthorized, or whether it be as herein permitted or not, or whether it
      be
      casual, occasional, or otherwise; excepting only such claim or damage as may
      be
      due to or caused by the acts or active negligence of Landlord or its servants
      or
      agents.

     

    11.6   Insurance.
      In
      support of its obligations hereunder, Tenant, at Tenant’s own cost and expense,
      shall obtain or provide and keep in full force for the benefit of the Landlord
      during the Term, general public liability insurance, insuring Landlord and
      Landlord’s agents against any and all liability or claims of liability arising
      out of, occasioned by, or resulting from any accident or otherwise in or about
      the Leased Premises, for limits of not less than $2,000,000.00 for injuries
      to
      one or more persons, in any one accident or occurrence, and for loss or damage
      to the property of any person or persons, for not less than $1,000,000.00.
      The
      policy or policies of insurance shall be of a company or companies authorized
      to
      do business in this State and Certificates of Insurance showing Landlord’s
      interest shall be delivered to Landlord, together with evidence of the payment
      of the premiums therefor, no less than fifteen days prior to the commencement
      of
      the Term or of the date when the Tenant shall enter into possession, whichever
      occurs sooner. At least fifteen days prior to the expiration or termination
      date
      of any policy, Tenant shall deliver a renewal or replacement Certificate of
      Insurance showing Landlord’s interest with proof of the premium therefor. Tenant
      shall pay to Landlord as Additional Rent any increase in Landlord’s fire
      insurance premiums resulting from Tenant’s use or occupancy of the Leased
      Premises, and Tenant shall pay each month, with Fixed Rent, as Additional Rent,
      an amount equal to 1/12th of such increased insurance premiums.

     

    11.7   Mutual
      Waiver of Subrogation.
      Each
      party hereto does hereby remise, release and discharge the other party hereto
      and any officer, agent, employee or representative of such party, of and from
      any liability whatsoever hereafter arising from loss, damage, or injury caused
      by fire or other casualty normally covered by extended coverage policy for
      which
      insurance (permitting waiver of liability and containing a waiver of
      subrogation) is carried by the injured party at the time of such loss, damage
      or
      injury to the extent of any recovery by the injured party under such insurance.
      Whenever (a) any loss, cost, damage or expense resulting from fire, explosion
      or
      any other casualty or occurrence is incurred by either of the parties to this
      Lease in connection with the Leased Premises, or the Building, and (b) such
      party is then covered, in whole or in part, by insurance with respect to such
      loss, cost, damage or expense, then, the party so insured hereby releases the
      other party from any liability it may have on account of such loss, cost, damage
      or expense to the extent 

     

    
      
        
        

      

      
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    of
      any
      amount recovered by reason of such insurance and waives any right of subrogation
      which might otherwise exist in or accrue to any person on account thereof,
      provided that such release of a liability and waiver of the right of subrogation
      shall not be operative in any case where the effect thereof is to invalidate
      such insurance coverage or increase the cost thereof (provided that in the
      case
      of increased cost, the other party shall have the right, within thirty (30)
      days
      following written notice, to pay such increased cost, thereupon keeping such
      release and waiver in full force and effect).

     

    ARTICLE
      12
      - DAMAGE BY FIRE OR OTHER CASUALTY

     

    12.1   Total/Partial
      Destruction.
      In case
      of the destruction of the Leased Premises or the Building by fire, enemy action
      or other casualty, during the Term, or previous thereto, or such partial
      destruction or damage thereto so as to render the Leased Premises wholly
      untenantable or unfit for occupancy, or should they be so badly injured that,
      in
      the reasonable judgment of Landlord, the same cannot be repaired within one
      hundred eighty (180) days from the happening of such injury, then and in any
      such case the Term shall cease and become null and void from the date of such
      damage or destruction and then Tenant shall immediately surrender the Leased
      Premises and all interest therein to the Landlord, its successors, assigns,
      agents or attorney, and Tenant shall pay Fixed Rent and Additional Rent within
      said Term only to the time of such destruction or damage; and in case of such
      destruction or partial destruction of said Building by fire, enemy action or
      other casualty, as above mentioned, Landlord, its successors, assigns, agents,
      or attorney may reenter and repossess the Leased Premises discharged from this
      Lease and may remove all parties therefrom. In the event the Leased Premises,
      or
      any part thereof so damaged, are, in the reasonable judgment of Landlord,
      repairable within one hundred eighty (180) days from the happening of any such
      injury, Landlord, its successors, assigns, agents or attorney, shall enter
      and
      repair the same with all reasonable speed. From the date of such injury and
      until repairs shall have been completed, the Fixed Rent and Additional Rent,
      or
      such proportionate share thereof as may be attributable to the portion damaged
      or destroyed and rendered unusable in whole or part, shall be abated. In the
      event the Leased Premises shall be so slightly injured by fire, enemy action
      or
      other casualty as not to be rendered untenantable and unfit for occupancy,
      then
      Landlord agrees to repair the same with reasonable promptness, and in that
      case
      the rent accrued and accruing shall not cease but shall continue without
      abatement. For purposes of this Section 12.1, Landlord’s judgment hereunder
      shall be conclusively deemed reasonable for all purposes hereof, if such
      judgment is made on the basis of the written report, opinion, recommendation
      or
      estimate of a reputable architect, engineer or contractor, but the failure
      of
      Landlord to obtain any such report, opinion, recommendation or estimate shall
      not create any inference that Landlord’s judgment was unreasonable.

     

    ARTICLE
      13
      - ELECTRICITY

     

    13.1   Tenant
      Electric Service.
      Landlord shall furnish to Tenant electric service which Tenant shall require
      in
      the Leased Premises for normal lighting and equipment (the “Tenant Electric
      Service”). Landlord shall not be liable in any way to Tenant for failure or

     

    
      
        
        

      

      
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    defect
      in
      the supply or character of electric energy furnished to the Leased Premises
      by
      reason of any requirement, act or omission of the public utility serving the
      office building with electricity or other reasons. Tenant shall pay for the
      reasonable cost to furnish and install all replacement lighting, tubes, lamps,
      bulbs and ballasts required in the Leased Premises. Tenant agrees that it shall
      turn its lights out after “regular hours of business days” (as defined in
      Section 14.8) failing which Tenant shall be liable for any additional electric
      service costs incurred. 

     

    
      
        
        

      

      
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    13.2   Cost
      of Electricity.
      Tenant
      shall pay to Landlord from and after the date that Tenant takes possession
      of
      the Leased Premises, but not later than the Commencement Date, as Additional
      Rent for Tenant Electric Service, in the amount set forth in subparagraph (g)
      of
      Section 1.1 (the “Tenant Electric Amount”), payable in equal monthly
      installments in advance on the first business day of each month. In the event
      the Commencement Date is other than the first day of the month, the Tenant
      Electric Amount shall be pro rated on a per diem basis for any partial month.
      The Tenant Electric Amount shall, however, be subject to adjustment from time
      to
      time during the Term, as provided in Sections 13.5 and 13.6 below. In the event
      that Tenant installs any high electrical usage equipment, Landlord reserves
      the
      right to place an electrical check meter on said equipment as well as any other
      equipment used in conjunction therewith at Tenant’s sole cost and expense. The
      charges for electrical energy consumed by such equipment shall be paid by Tenant
      as Additional Rent in addition to all other sums due under this Agreement,
      the
      cost thereof to be at the established rate charged by the utility company
      supplying electrical service to the Leased Premises.

     

    13.3   Tenant
      Not To Exceed Capacity.
      Tenant’s use of electric energy in the Leased Premises shall not at any time
      exceed the capacity of any of the electrical conductors and equipment in or
      otherwise serving the Leased Premises. In order to insure that such capacity
      is
      not exceeded and to avert possible adverse effect upon the building electric
      service, Tenant shall not, without Landlord’s prior written consent in each
      instance (which shall not be unreasonably withheld), connect any fixtures,
      appliances or equipment to the building electric distribution system or make
      any
      alteration or addition to the electric system of the Leased Premises existing
      on
      the Commencement Date. Should Landlord grant such consent, all additional risers
      or other equipment required therefor shall be provided by Landlord and the
      cost
      thereof shall be paid by Tenant upon Landlord’s demand.

     

    13.4   Electric
      Meters.
      Notwithstanding the provisions of this Article 13, Landlord reserves the right
      to install separate electric meters or other measuring devices for each tenant
      to measure such tenant’s actual use of Tenant Electric Service, in which event
      the Tenant Electric Amount shall be based on actual usage. In the event
      arrangements are made by the Landlord with the utility company for separate
      usage billings directly to Tenant, then Tenant shall be responsible for payment
      of all usage charges directly to the utility. The cost of installation of the
      meters or other measuring devices shall be divided equally among the tenants
      and
      not based upon rentable area.

     

    13.5   Electric
      Survey.
      Tenant
      agrees that an independent electrical engineering consultant selected by
      Landlord may from time to time make a survey of Tenant’s actual use of Tenant
      Electric Service to determine the average monthly electric consumption thereof,
      said survey to be at Tenant’s expense, the cost of which shall not be in excess
      of ordinary charges for such service. The aforesaid survey shall take into
      account, among other things, any special electrical requirements of Tenant
      and
      use by Tenant of electrical energy at times other than during regular hours
      of
      business days. The findings of such engineer or consultant as to such average
      monthly electric consumption shall be conclusive and binding upon the parties.
      If the cost of Tenant Electric Service is determined by survey to be more or
      less than

     

    
      
        
        

      

      
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    the
      Tenant Electric Amount, the Tenant Electric Amount shall be increased or
      decreased, retroactive to the later of the Commencement Date or the date of
      the
      most recent previous survey (the “Retroactive Date”), to an amount equal to the
      cost of Tenant Electric Service as determined by the survey. Tenant shall pay
      to
      Landlord, from and after the date of the survey, as Additional Rent for Tenant
      Electric Service, the Tenant Electric Amount, as so adjusted. If the Tenant
      Electric Amount is so increased, Tenant shall pay as Additional Rent, within
      ten
      (10) days of the receipt of an invoice from Landlord therefor, a sum equal
      to
      the Tenant Electric Amount as determined by the survey, less the Tenant Electric
      Amount immediately prior to the survey, for the period commencing on the
      Retroactive Date and ending on the date of the survey. If the Tenant Electric
      Amount is so decreased, Tenant shall receive a credit against the next month(s)’
Fixed Rent a sum equal to the Tenant Electric Amount immediately prior to the
      survey, less the Tenant Electric Amount as determined by the survey, for the
      period commencing on the Retroactive Date and ending on the date of the
      survey. 

     

    13.6   Change
      in Electric Rates.
      If the
      electric rates of the public utility supplying electrical service to the
      Building shall be increased or decreased, then the Tenant Electric Amount shall
      be increased or decreased in the amount equal to the change in Landlord’s cost
      of supplying electrical current to the Leased Premises resulting from such
      rate
      change, retroactive if necessary to the date of such increase or decrease in
      such electric rates. If the Tenant Electric Amount is so increased, Tenant
      shall
      pay such increase, as Additional Rent, within ten (10) days of the receipt
      of an
      invoice from Landlord therefor. If the Tenant Electric Amount is so decreased,
      Tenant shall receive a credit against the next month(s)’ Fixed Rent in an amount
      equal to such decrease. 

     

    ARTICLE
      14
      - SERVICES PROVIDED BY LANDLORD

     

    14.1   Elevators.
      Landlord, at its expense, shall provide public elevator service, passenger
      and
      service, by elevators serving the floor on which the Leased Premises are
      situated during regular hours of business days and shall have at least one
      passenger elevator subject to call at all other times.

     

    14.2   Heating,
      Ventilating and Air-Conditioning.
      Landlord will furnish heating, ventilating and air-conditioning to the Leased
      Premises when necessary during regular hours of business days to an inside
      temperature of 78 degrees F. dry bulb and 50% relative humidity when outside
      temperatures are 95 degrees F. dry bulb and 75 degrees F. wet bulb and 70
      degrees F. inside when outside temperatures are 0 degrees F. with wind velocity
      of 15 M.P.H. provided, however, that Landlord may reduce the temperature if
      necessary to comply with any federal, state or municipal law, ordinance, rule,
      regulation or executive order.

     

    14.3   Further
      As to Heating and Air-Conditioning.
      Landlord agrees to furnish air-conditioning and to maintain the Leased Premises
      for the comfortable occupancy and use of the Leased Premises during regular
      hours of business days. Tenant agrees to keep all windows in the Leased Premises
      closed at all times during which the air conditioning system

     

    
      
        
        

      

      
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    and
      heating system is in operation and otherwise to cooperate with Landlord and
      to
      abide by all regulations or requirements which Landlord may reasonably prescribe
      for the proper functioning and protection of the air-conditioning
      system.

     

    14.4   Hot
      and Cold Water.
      Landlord, at its expense, shall furnish adequate hot and cold water to the
      Building for drinking, lavatory and cleaning purposes. If Tenant uses water
      for
      any other purpose, Landlord, at Tenant’s expense, shall install meters to
      measure Tenant’s consumption of cold water and/or hot water for such other
      purposes as the case may be. Tenant shall pay for the quantities of cold water
      and hot water shown on such meters, at Landlord’s cost thereof, on the rendition
      of Landlord’s bills therefor.

     

    14.5   Building
      Directory.
      Landlord, at its expense, and on Tenant’s request, shall provide Tenant with
      three (3) listings on the building directory and on the fourth (4th)
      floor
      directory.

     

    14.6   Office
      Cleaning.
      Landlord will provide an office cleaning and maintenance force to keep the
      building in clean condition at all times, consistent with the standards of
      first-class office buildings in the area. Landlord will furnish janitorial
      services to the Leased Premises, as well as to the lavatories on the floor
      of
      the Building on which the Leased Premises is located, in accordance with the
      cleaning specifications attached hereto as Exhibit “D.”

     

    14.7   Interruption
      of Services.
      It is
      understood that no deduction whatsoever shall be made from the amount of rent
      payable hereunder should any heating, lighting, elevator service,
      air-conditioning, or janitor’s services not be used by Tenant, nor shall the
      Landlord be answerable in damages to Tenant for any interruption of heating,
      lighting, electrical power, alternative power, elevator service,
      air-conditioning or janitor service caused by strike, breakdowns, inability
      to
      secure fuel or other required power or by any other cause not due to negligence
      on the part of Landlord.

     

    14.8   Holidays.
      As used
      in this Article 14, the term “regular hours of business days” shall mean, unless
      otherwise indicated, the hours of 8:00 A.M. to 6:00 P.M. on weekdays and 8:00
      A.M. to 1:00 P.M. on Saturdays, excluding all Sundays and the following
      holidays:

     

    (a)   New
      Year’s Day;

     

    (b)   Presidents’
      Day;

     

    (c)   Memorial
      Day;

     

    (d)   Independence
      Day;

     

    (e)   Labor
      Day;

     

    
      
        
        

      

      
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    (f)   Thanksgiving
      Day;

     

    (g)   Christmas
      Day;

     

    (h)   Martin
      Luther King’s Birthday;

     

     (i)   
Such
      other days, not exceeding 3 in any one calendar year, as may be indicated by
      Landlord to Tenant 

        upon  thirty  (30)
      days’ written
      notice.

     

    However,
      Landlord agrees that Tenant may use the Leased Premises after 6:00 P.M. weekdays
      and after 1:00 P.M. on Saturdays, and on Sundays and the aforementioned holidays
      without additional charge for said use, but Landlord shall not be required
      to
      furnish any heat, ventilation or air-conditioning beyond that normally furnished
      for those hours. 

     

    14.9   Card
      Access.
      Landlord will provide Tenant with three (3) electronic access cards for each
      1,000 rentable square feet of space occupied by Tenant. Additional cards will
      be
      provided at Tenant’s expense. All cards shall remain the property of Landlord
      and shall be returned to Landlord at the expiration of the Term or otherwise
      upon the demand of the Landlord. Tenant shall pay Landlord the then current
      cost
      of each card not returned. At any time, and at Landlord’s cost, Landlord shall
      have the right to change the system of access to the Building, and comparable
      arrangements will be made to provide access by Tenant.

     

    ARTICLE
      15
      - QUIET ENJOYMENT

     

    15.1   Quiet
      Enjoyment.
      Landlord covenants and agrees that Tenant, upon payment of the Fixed Rent and
      Additional Rent reserved herein and upon observing and keeping the covenants,
      agreements and stipulations of this Lease on its part to be kept, shall
      lawfully, peaceably and quietly hold, occupy and enjoy the Leased Premises
      during the Term and any extension or extensions thereof, without hindrance,
      ejection or molestation by Landlord or any person or persons claiming under
      Landlord or claiming by a title superior to that of Landlord.

     

    ARTICLE
      16
      - EVENTS OF DEFAULT

     

    Each
      of
      the following events shall constitute a default hereunder:

     

    16.1   Nonpayment
      of Rent.
      If the
      Fixed Rent or any part thereof or the Additional Rent or any part thereof due
      hereunder shall be unpaid when due.

     

    16.2   Vacation.
      If the
      Leased Premises shall be vacated, deserted, or abandoned during the Term for
      a
      period of more than thirty (30) consecutive days.

     

    16.3   Assignment,
      etc., of Lease.
      If
      Tenant, contrary to the provisions of this Lease, shall sell, assign or mortgage
      this Lease, or let or underlet the Leased Premises or any part thereof, or
      use
      or permit the same to be used for any purpose other than herein
      permitted.

     

    
      
        
        

      

      
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    16.4   Act
      of Bankruptcy.
      If
      Tenant shall make an agreement of composition or an assignment for the benefit
      of creditors, or if a Receiver is applied for or appointed for Tenant, or if
      there be filed a petition in bankruptcy or insolvency or for an arrangement
      or
      reorganization by or against Tenant, or consented to by Tenant, or if Tenant
      is
      adjudicated a bankrupt or is adjudged to be insolvent, or if Tenant is
      advertised to be sold out by any sale under process of law, or if the assets
      or
      property of Tenant in the Leased Premises shall be attached or levied upon,
      or
      if this Lease or the estate of Tenant shall pass to another by virtue of any
      court proceedings, writ of execution or operation of law.

     

    16.5   Noncompliance.
      If
      Tenant fails to comply with any other provision of this Lease which imposes
      an
      obligation upon Tenant, or if Tenant otherwise violates any provision or
      condition of this Lease.

     

    ARTICLE
      17
      - REMEDIES UPON DEFAULT

     

    17.1   All
      Remedies Available.
      In the
      event of any default hereunder in the payment of Fixed Rent, Additional Rent
      or
      any other money due, Landlord shall give a five (5) day written notice to
      Tenant, specifying the nature and amount of such default. In the event of any
      non-monetary default hereunder, Landlord shall give a thirty (30) day written
      notice Tenant, specifying the nature of such default. Tenant shall thereupon,
      and within such thirty (30) day period, correct such non-monetary default,
      or
      diligently commence the correction of the non-monetary default thereof or within
      such five (5) day period pay the amount due to cure the monetary default. In
      the
      event that Tenant, after receiving such notice, shall fail to correct such
      non-monetary default, or to diligently commence the correction of the
      non-monetary default within such thirty (30) day period and thereafter to
      diligently pursue the correction and curing of such non-monetary default, or
      shall fail to pay the money due within such five (5) day period, Landlord may,
      upon written notice to Tenant, cancel and terminate this Lease. In such event,
      Landlord, in addition to all other rights and remedies provided by or permitted
      by law, or elsewhere conferred in this Lease, shall have the remedies provided
      in this Article 17, which remedies shall also be available to Landlord, without
      additional prior notice of any kind. Notwithstanding anything contained in
      this
      Section 17.1 to the contrary, in the event Tenant defaults in the making of
      any
      monetary payment when due more than two (2) times in any twelve (12) month
      period, Landlord’s obligation to give Tenant written notice of any such default
      and Tenant’s right to cure such default shall be forfeited and terminated during
      the remaining Term and any option periods.

     

    17.2   Occupancy
      Ceases.
      Upon
      such default, the Term and all rights of Tenant hereunder and all rights of
      Tenant to the continued occupation of the Leased Premises shall cease and
      terminate at the option of Landlord.

     

    17.3   Distraint.
      Tenant
      agrees that all property on the Leased Premises shall be liable to distraint
      for
      rent and for all costs of distress as may be permitted by law, including such
      costs as may by law be chargeable to Landlord; and in case any goods or assets
      shall have been removed from the Leased Premises, Landlord may follow, take
      and
      return said

     

    
      
        
        

      

      
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    goods
      to
      the Leased Premises or distrain upon and sell the same wherever found, Tenant
      hereby waiving the benefit of all laws made or to be made exempting any such
      property from levy and sale either on distress for said Fixed Rent or Additional
      Rent, damages, costs and any other charges payable as Additional Rent, or on
      a
      judgment for said rent, damages, costs and any other charges payable as rent
      or
      for breach of any other of the conditions herein contained.

     

    17.4   Right
      of Reentry.
      Landlord may, at its option and without further notice, reenter the Leased
      Premises and dispossess Tenant and any legal representative or successor of
      Tenant, or other occupant of the Leased Premises either with or without summary
      proceedings or appropriate suit, action or proceedings, and, remove Tenant’s
      property, assets and effects from the Leased Premises and hold the Leased
      Premises as if this Lease had not been made, Tenant hereby expressly waiving
      service of notice of intention to reenter or to institute legal proceedings
      to
      that end.

     

    17.5   Rent
      and Other Charges.
      Notwithstanding such reentry, default, expiration, or dispossession by summary
      proceedings or otherwise, Tenant shall continue to be liable for the full period
      which would otherwise have constituted the balance of the Term and shall pay
      as
      liquidated damages at the same time as the Fixed Rent, and Additional Rent,
      and
      other charges become payable under the terms hereof and in lieu thereof, a
      sum
      equivalent to the Fixed Rent, Additional Rent, and other charges reserved
      herein, less only the net avails of reletting of the Leased Premises. Landlord
      shall use commercially reasonable efforts to relet the whole or any part or
      parts of the Leased Premises from time to time, either in the name of Landlord,
      or otherwise, to such tenant or tenants, for such time and at such rent,
      including concessions and free rent periods, as Landlord may in its discretion
      determine. Landlord shall have no obligation to relet the Leased Premises or
      any
      part thereof in preference to other space for let by Landlord and, instead,
      shall be entitled to give leasing and marketing priority to such other spaces
      available for let by Landlord. The net proceeds of any such reletting shall
      be
      applied first to the expense of resuming or obtaining possession, next to
      restoring the Leased Premises to a rentable condition, and then to the payment
      of Fixed Rent, Additional Rent and other charges including but not limited
      to
      brokers’ commissions and attorneys’ fees incurred by Landlord due and to become
      due to Landlord hereunder, any surplus to be paid to Tenant, which shall be
      and
      remain liable for any deficiencies.

     

    17.6   Injunctive
      Relief.
      Landlord may, in addition to other remedies available to it hereunder or by
      law,
      have the right of injunction against any violation or continued violation of
      this Lease.

     

    17.7   Right
      of Redemption Waived.
      Tenant
      hereby expressly waives any and all rights of redemption granted by or under
      any
      present or future laws in the event of Tenant being evicted or dispossessed
      for
      any cause, or in the event of Landlord obtaining possession of the Leased
      Premises by reason of the violation by Tenant of any of the terms, covenants,
      conditions or agreements of this Lease.

     

    
      
        
        

      

      
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    17.8   No
      Waiver.
      Failure
      of Landlord to insist upon the strict performance of any of the covenants or
      conditions of this Lease, or to exercise any option or election herein conferred
      in any one or more instances, or the adoption of any one or more but less than
      all of the remedies available to it hereunder or by law in the event of default
      by Tenant, shall not be construed as a waiver or relinquishment for the future
      of any such covenants, conditions or options, or of any remedy available to
      it,
      but the same shall be and remain in full force and effect
      notwithstanding.

     

    17.9   Property
      Deemed Abandoned.
      If
      after any default, or upon the expiration of the Lease, Tenant moves out or
      is
      dispossessed, and fails to remove any furniture, fixtures or other property
      from
      the Leased Premises, the same shall be deemed abandoned by Tenant and shall
      become the property of Landlord or at Landlord’s option be disposed of at
      Tenant’s cost.

     

    ARTICLE
      18
      - SUBORDINATION AND ESTOPPEL CERTIFICATE

     

    18.1   Subordination.
      This
      Lease shall be subject and subordinate at all times to the lien of any mortgages
      now or hereafter placed on the land and Building. Tenant covenants and agrees
      to
      execute and deliver upon demand such further instrument or instruments
      subordinating this Lease to the lien of any such mortgage or mortgages as shall
      from time to time be desired by any mortgagee or proposed mortgagee. Tenant
      further acknowledges that Landlord may be required by any mortgagee or proposed
      mortgagee to assign this Lease as additional security for any mortgage or
      proposed mortgages, and Tenant agrees that it will, upon demand, join with
      Landlord in the execution of any such assignment or agreement, which may be
      in
      form for recording, as any such mortgagee or proposed mortgagee may reasonably
      require. Tenant’s failure to comply on demand with the provisions hereof shall
      constitute a default under this Lease.

     

    
      
        
        

      

      
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    18.2   Estoppel
      Certificate.
      Tenant
      shall, at any time and from time to time, upon not less than ten (10) days
      prior
      notice from Landlord or Landlord’s mortgagee, execute, acknowledge and deliver a
      written statement certifying that this Lease is in full force and effect subject
      only to such modifications as may be set out; and, Tenant is in possession
      of
      the Leased Premises and is paying Fixed Rent and Additional Rent as provided
      in
      this Lease; and, the amount of any Security Deposit with Landlord; and, the
      date
      to which Fixed Rent and Additional Rent is paid in advance; and, there are
      not,
      to the signatory’s knowledge, any uncured defaults on the part of Landlord, or
      specifying such defaults if any are claimed. Any such statement may be relied
      upon by any prospective transferee or encumbrancer of all or any portion of
      the
      Building, or any assignee of any such persons. If Tenant fails to timely deliver
      such statement, Tenant shall be deemed to have acknowledged that this Lease
      is
      in full force and effect, without modification except as may be represented
      by
      Landlord and that there are no uncured defaults in Landlord’s performance and
      that the other statements contained therein are true.

     

    ARTICLE
      19
      - CONDEMNATION

     

    19.1   Total
      Taking.
      If the
      whole of the Leased Premises shall be taken under the exercise of the power
      of
      condemnation or eminent domain, then this Lease shall automatically terminate
      on
      the date that title or possession is taken by the condemner, whichever occurs
      first, and the Fixed Rent and Additional Rent shall be apportioned as of said
      date. If any part of the Leased Premises be so taken so as to materially
      restrict, limit or adversely affect the use, occupancy or enjoyment of Tenant,
      then Tenant shall have the option to terminate this Lease by thirty (30) days’
written notice to Landlord, which notice must be given within ninety (90) days
      after possession or title on the partial taking is obtained by condemner, and
      the Fixed Rent and Additional Rent shall be apportioned on the effective date
      of
      termination of the Lease by Tenant. Notwithstanding the foregoing, if parking
      space only is taken, Tenant may not terminate this Lease if Landlord furnishes
      to Tenant an equivalent number of parking spaces situated within 700 feet of
      the
      property lines of the real property on which the Leased Premises are
      situated.

     

    19.2   Rental
      Apportioned.
      If any
      part of the Leased Premises shall be so taken and this Lease shall not terminate
      or be terminated under the provisions of Section 19.1 hereof, then the rental
      shall be equitably apportioned according to the space so taken, and the Landlord
      shall, at its own cost and expense, restore the remaining portion of the Leased
      Premises to the extent necessary to render it reasonably suitable for the
      purposes for which it was leased, shall provide sufficient parking facilities
      equivalent to those originally furnished to Tenant, and shall make all repairs
      to the Building to the extent necessary to constitute the Building a complete
      architectural unit; provided, however, that if the amount of the award received
      by Landlord is not adequate to cover the cost of such restoration or repairing,
      Landlord may elect by written notice to Tenant to that effect to terminate
      this
      Lease.

     

    19.3   Award
      Belongs to Landlord.
      All
      compensation awarded or paid upon such a total or partial taking of the Leased
      Premises shall belong to and be the property of Landlord

     

    
      
        
        

      

      
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    without
      any participation by Tenant; provided, however, that nothing contained herein
      shall be construed to preclude Tenant, as permitted by law, from prosecuting
      any
      claim directly against the condemning authority in such condemnation proceedings
      for loss of business, relocation costs or depreciation to, damage to, or cost
      of
      removal of, or for the value of stock, trade fixtures, furniture and other
      personal property belonging to Tenant.

     

    ARTICLE
      20
      - ACCESS

     

    20.1   Access.
      Landlord or Landlord’s agent shall have the right to enter or pass through the
      Leased Premises or any part thereof, at reasonable times during reasonable
      hours, and upon reasonable notice to Tenant (which may be by telephone), except
      in the case of an emergency, (a) to examine the Leased Premises and to show
      them
      to the owners, lessors of superior leases, holders of superior mortgages or
      prospective purchasers, mortgagees or lessees of the Building as an entirety,
      and (b) for the purpose of making such repairs or changes or doing such
      repainting in or to the Leased Premises or in or to the Building or to
      facilities as may be provided for by this Lease or as may be mutually agreed
      upon by the parties or as Landlord may be required to make by law or in order
      to
      prepare and maintain the Building or its fixtures or facilities or in order
      to
      satisfy any obligation imposed on Landlord to any other tenant occupying or
      about to occupy part of the Building. Landlord shall be allowed to take all
      material into and from the Leased Premises that may be required for such
      repairs, changes, repainting or maintenance, without liability to
      Tenant.

     

    ARTICLE
      21
      - LANDLORD’S LIABILITY LIMITED

     

    21.1   Landlord’s
      Liability Limited.
      Tenant
      shall look solely to the estate and interest of Landlord, its successors and
      assigns, in the land and Building, for the collection of any judgment recovered
      against Landlord based upon the breach by Landlord of any of the terms,
      conditions or covenants of this Lease on the part of Landlord to be performed,
      and no other property or assets of Landlord shall be subject to levy, execution
      or other enforcement procedures for the satisfaction of Tenant’s remedies under
      or with respect to either this Lease, the relationship of Landlord and Tenant
      hereunder, or Tenant’s use and occupancy of the Leased Premises.

     

    ARTICLE
      22
      - SURRENDER OF LEASED PREMISES; HOLDOVER TENANCY

     

    22.1   Surrender
      of Leased Premises.
      Upon
      the expiration of the Term or the sooner termination of this Lease, Tenant
      shall
      quit and surrender the Leased Premises in good and orderly condition and repair,
      reasonable wear and tear and damage caused by fire or other casualty excepted,
      and shall deliver the Leased Premises to Landlord peaceably, together with
      all
      alterations, additions, and improvements in, to or on the Leased Premises,
      made
      by Tenant as permitted under this Lease. Landlord reserves the right, subject
      to
      Section 9.4 of this Lease, to require Tenant, at its cost and expense, to remove
      any interior changes, alterations, additions and improvements in accordance
      with
      Section 9.4 hereof, or installed by Tenant in violation of this Lease, which
      covenant shall survive the surrender and delivery of the Leased Premises as
      provided hereunder. Prior to the expiration of the Term,

     

    
      
        
        

      

      
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    Tenant
      shall remove all of its property, equipment and trade fixtures from the Leased
      Premises without damage, leaving the Leased Premises in broom-clean condition.
      All property not removed by Tenant shall be deemed abandoned by Tenant and
      Landlord reserves the right to charge the cost of such removal to Tenant, which
      obligation shall survive the termination of this Lease and the surrender of
      the
      Leased Premises. If the Leased Premises are not surrendered at the termination
      of the Term, or if the Leased Premises are damaged, Tenant shall indemnify
      Landlord against such loss or liability resulting from the delay by Tenant
      in
      surrendering the Leased Premises or the removal of Tenant’s property, including,
      without limitation, any claims made by any succeeding tenant founded on the
      delay or damage.

     

    22.2   Holdover
      Tenancy.
      If
      Tenant remains in possession of the Leased Premises after the expiration of
      the
      original Term or of any option term, except pursuant to an exercise of an option
      to extend, or after Tenant’s right of occupancy has been properly terminated by
      Landlord, such possession shall be considered as a tenant at will or sufferance
      of Landlord, and the possession may be terminated by Landlord at any time upon
      three days’ prior written notice to Tenant. During such period of occupancy as a
      tenant at will or sufferance of Landlord, rent shall be payable on the first
      day
      of every month, in advance, at a rate equal to twice the Fixed Rent for the
      last
      month of the term in addition to the Additional Rent for expense reimbursements
      which shall continue to be payable as provided in this Lease. The increased
      rent
      is not intended to be a penalty but is intended to be an agreed amount in order
      to avoid a controversy over the determination of fair market rent or similar
      phrase.

     

    ARTICLE
      23
      - ASBESTOS

     

    23.1   Presence
      of Asbestos.
      The
      parties acknowledge that the ceiling and structural components of other portions
      of the Building contain or are covered with asbestos and that the possible
      presence of airborne asbestos is sufficiently important to create certain rights
      and obligations of the parties. The Building shall be maintained in accordance
      with the Operations and Procedures Manual on file with Forest Green Management
      Corporation, 26 Court Street, Suite 300, Brooklyn, New York, 11242 and available
      for review by the Tenant during business hours. Landlord represents that
      abatement of all asbestos or asbestos-containing materials in the Leased
      Premises has occurred. Landlord further represents that such abatement was
      performed in accordance with all federal, state and local laws, ordinances,
      orders, rules and regulations enacted to protect public health and safety
      including without limitation the Federal Occupational Safety and Health Act
      (29
      U.S.C. et. seq.), the Asbestos Control and Licensing Act (N.J.S.A. 34:5a-32
      et.
      seq.) and all regulations promulgated pursuant to the foregoing. 

     

    ARTICLE
      24
      - RELOCATION

     

    24.1   Landlord’s
      Right to Relocate.
      At any
      time after the date of the execution of this Lease, Landlord may substitute
      for
      the Leased Premises any other premises in the Building (the “New Leased
      Premises”), in which event the New Leased Premises shall be

     

    
      
        
        

      

      
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    deemed
      to
      be the Leased Premises for all purposes under this Lease. The area of the New
      Leased Premises shall not be less than ninety (90%) percent of the area of
      the
      Leased Premises and the New Leased Premises shall not have less than ninety
      (90%) percent of the window area of the Leased Premises. Notwithstanding the
      foregoing, the New Leased Premises shall be a corner unit with comparable
      finishes and shall not be located on the first (1st)
      floor
      of the Building. If the area of the New Leased Premises is less than the area
      of
      the Leased Premises, there will be a ratable reduction in Fixed Rent, the
      Security Deposit and Tenant’s pro rata share of any Increase in Real Estate
      Taxes and of any Increase in Operating Expenses. If the area of the New Leased
      Premises is greater than the area of the Leased Premises, there will be no
      increase in Fixed Rent, the Security Deposit or Tenant’s pro rata share of any
      Increase in Real Estate Taxes and of any Increase in Operating Expenses. If
      Tenant is then occupying the Leased Premises, Landlord shall move Tenant, its
      property and equipment to the New Leased Premises at Landlord’s expense.
      Landlord shall endeavor to move Tenant, its property and equipment expeditiously
      and in such a manner as to minimize any disruption to Tenant’s business;
      provided, however, that Landlord shall be under no obligation to move Tenant,
      its property and equipment on weekends or after normal business hours, but
      Landlord may, in Landlord’s discretion, move Tenant, its property and equipment
      during such times if possible without incurring additional expense. If Landlord
      substitutes the New Leased Premises for the Leased Premises after the
      Commencement Date of this Lease, Landlord shall give to Tenant not less than
      seventy-five (75) days’ prior written notice of the substitution. If Landlord
      substitutes the New Leased Premises for the Leased Premises prior to the
      Commencement Date, Landlord shall give to Tenant not less than thirty (30)
      days’
prior written notice of the substitution. In such event, Landlord will provide,
      in Landlord’s notice of substitution, a new estimated commencement date which
      will not be more than sixty (60) days from the original Estimated Commencement
      Date as set forth in Section 6.5 and the new estimated commencement date shall
      become the Estimated Commencement Date for purposes of Section 6.5. 

     

    ARTICLE
      25
      - ADDITIONAL PROVISIONS

     

    25.1   Tenant’s
      Reimbursement.
      Tenant
      shall reimburse Landlord for the actual, reasonable attorneys’ fees incurred by
      Landlord in connection with each review of any requested consent for subletting
      or assignment, and for the preparation or review of any documents or instruments
      pertaining to the same, and for any action to enforce Tenant’s obligation
      pursuant to this Lease, including, but not limited to, collection of Rent and/or
      Additional Rent, dispossess actions and distraint.

     

    25.2   Landlord’s
      Consent.
      If in
      this Lease it is provided that Landlord’s consent or approval as to any matter
      will not be unreasonably withheld, and it is established by a court or body
      having final jurisdiction thereover that Landlord has been unreasonable, the
      only effect of such finding shall be that Landlord shall be deemed to have
      given
      its consent or approval, but Landlord shall not be liable to Tenant in any
      respect for money damages by reason of withholding its consent.

     

    
      
        
        

      

      
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    25.3   Mortgagee
      Protection Clause.
      Tenant
      shall comply with the following terms and conditions relating to the mortgage
      financing of the Building:

     

    (a)   All
      insurance policies maintained by Tenant pursuant to Section 11.6 of this Lease
      shall name Landlord, Landlord’s managing agent and any mortgagee(s) of Landlord
      as additional insureds. In addition, all such policies shall contain clauses
      or
      endorsements to the effect that such policies shall not be materially changed
      (other than to increase the coverage provided thereby) or cancelled without
      at
      least thirty (30) days prior written notice from the insurance carrier to
      Landlord and any mortgagee named therein as an additional insured, by certified
      mail.

     

    (b)   In
      the
      event of any act or omission by Landlord which would or may give Tenant the
      right to terminate this Lease or to claim a partial or total eviction, Tenant
      shall not exercise any such right until and unless:

     

    (i)   It
      has
      given written notice of any such act or omission to Landlord, and to any
      mortgagee(s) of Landlord whose name and address have previously been furnished
      to Tenant; and 

     

    (ii)   A
      reasonable period of time for remedying such act or omission shall have elapsed
      following such notice, during which the parties to whom such notice has been
      given, or any of them, have not commenced with reasonable diligence the
      remedying of such act or omission or thereafter diligently proceeded to complete
      the remedying of such act or omission.

     

    25.4   Broker
      Representation.
      Landlord and Tenant each represent that the only real estate broker or agent
      it
      has dealt with in connection with the transaction effected hereby is Legacy
      Property Group, L.L.C. and each agree to indemnify and hold the other harmless
      from any and all claims which may be asserted by any other real estate broker
      or
      agent claiming a fee or commission due for this transaction as a result of
      its
      acts. Landlord will pay any fee and commission to Legacy Property Group, L.L.C.
      in connection with this transaction.

     

    25.5   Limitation
      on Signs.
      Tenant
      shall not erect, make or maintain on or attach or affix to any part of the
      Leased Premises or the Building, including the windows and doors of said
      Building, but excluding interior walls within the Leased Premises except those
      visible from the exterior, any sign, fixture, other representation,
      advertisement, notice of any kind or any other matter which is visible from
      any
      location outside of such Building or the Leased Premises, or visible from the
      lobby of such Building, without the express written consent of the Landlord
      obtained in advance. In the event that such restriction is violated, Landlord
      shall have the right to remove same on 24 hours’ notice or to proceed against
      Tenant by way of seeking an injunction or such other remedy as may be available
      to it at law or in equity, including but not by way of limitation, the right
      to
      declare a default in the Lease.

     

    
      
        
        

      

      
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    25.6   Approval
      of Lettering.
      Any
      lettering, “logo” or design or artwork placed upon the entrance doors to the
      Leased premises shall be subject to the reasonable approval of the
      Landlord.

     

    25.7   Loudspeakers.
      No
      loudspeaker or any other form of sound or audio transmission or apparatus shall
      be used in or at the Leased Premises by Tenant, its agents or employees, for
      advertising or promotional purposes or any other purpose if the volume is such
      as to be audible outside of the Leased Premises. In the event of a violation
      of
      said restriction, Landlord shall have the right to proceed against Tenant by
      way
      of seeking injunctive relief, or such other remedy as may be available to it
      at
      law or in equity, including but not by way of limitation, the right to declare
      a
      default in the Lease. This shall not prohibit the use of tape records,
      transcribing machines, telephone voice amplification, or the use of any business
      machine or device customarily used in a business or professional
      office.

     

    25.8   Telephone
      Equipment.
      Tenant
      agrees to pay for the cost of all telephone equipment and installation,
      including telephone outlets throughout the Leased Premises, unless a telephone
      system communications company agrees to pay for same.

     

    25.9   Washrooms.
      It is
      understood that at all times the office personnel and invitees of Tenant shall
      have access to and use of the washroom in the common areas on the floor on
      which
      the Leased Premises are situated.

     

    25.10   Rules
      and Regulations.
      Any
      reasonable rules and regulations with regard to the use and occupancy of the
      Leased Premises and the Building by Tenant as adopted at any time during the
      Term and of which Tenant is notified, shall in all things be observed and
      performed by Tenant, its servants, agents, and invitees, provided that such
      rule
      shall not be inconsistent with Tenant’s rights or Landlord’s obligations as
      herein expressed. A copy of the existing Rules and Regulations for the Building
      is attached hereto as Exhibit “E”.

     

    25.11   Notices.
      All
      notices required to be given to Landlord or Tenant shall be given by registered
      or certified mail; public courier or recognized overnight delivery addressed
      to
      the Tenant or to Landlord at the address set forth in subparagraph (l) of
      Section 1.1, and such notices shall be considered delivered to Landlord or
      Tenant as of the time they are received or delivery is refused by
      addressee.

     

    25.12   Headings.
      The
      headings of the articles and sections and the numbers of the items in this
      Lease
      are inserted as a matter of convenience to the parties and shall not affect
      the
      construction of this Lease.

     

    25.13   Entire
      Contract.
      This
      Lease contains the entire contract between the parties. No representative,
      agent
      or employee of Landlord has been authorized to make any representations or
      promises with reference to the within letting or to vary, alter or modify the
      terms hereof. No additions, changes or modifications, renewals or extensions
      hereof, shall be binding unless reduced to writing and signed by Landlord and
      Tenant.

     

    
      
        
        

      

      
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    25.14   Provisions
      Severable.
      The
      terms, conditions, covenants and provisions of this Lease shall be deemed to
      be
      severable. If any clause or provision herein contained shall be adjudged to
      be
      invalid or unenforceable by a court of competent jurisdiction or by operation
      of
      any applicable law, it shall not affect the validity of any other clause or
      provision herein, but such other clauses or provisions shall remain in full
      force and effect. In addition, Landlord may pursue the relief or remedy sought
      in any invalid clause, by conforming the said clause with the provisions of
      the
      statutes or the regulations of any governmental agency in such case made and
      provided as if the particular provisions of the applicable statutes or
      regulations were set forth herein at length.

     

    25.15   Governing
      Law.
      This
      Lease shall be interpreted, governed by, and enforced in accordance with the
      laws of the State of New Jersey.

     

    25.16   Successorship.
      In all
      references herein to any parties, persons, entities or corporations, the use
      of
      any particular gender or the plural or singular number is intended to include
      the appropriate gender or number as the text of the within instrument may
      require. All the terms, covenants and conditions herein contained shall be
      for,
      and shall inure to, the benefit of and shall bind the respective parties hereto,
      and their heirs, executors, administrators, personal or legal representatives,
      successors and assigns.

     

    25.17   Assignment
      of Furniture and Equipment.
      On the
      Commencement Date, Landlord shall assign to Tenant, for the consideration of
      One
      ($1.00) Dollar, such furniture and equipment set forth on Exhibit “F” annexed
      hereto (the “Furniture and Equipment”), which Landlord intends to acquire from
      Cole, Schotz, Meisel, Forman & Leonard, P.A. (“CSMF&L”), the tenant
      occupying the Leased Premises as of the date hereof, on or about December 31,
      2005. Tenant acknowledges that Landlord is acquiring such Furniture and
      Equipment from CSMF&L at the request of and solely for the benefit of
      Tenant. Tenant acknowledges that such Furniture and Equipment will be located
      in
      the Leased Premises on the Commencement Date. Landlord shall convey the
      Furniture and Equipment to Tenant, pursuant to a bill of sale in the form
      annexed hereto as Exhibit “G”, “as is, where is” in its then present condition
      and state of repair, without recourse to Landlord and without any warranties
      or
      representations of any kind, express or implied, by Landlord, except that
      Landlord shall assign to Tenant, without recourse, any warranties and
      representations that may be made by CSFM&L as contained in the bill of sale
      conveying the Furniture and Equipment from CSMF&L to Landlord.

     

    ARTICLE
      26
      - OPTION TO EXTEND

     

    26.1   Option
      to Extend.
      Subject
      to the rights of any other tenants, upon the expiration of the term (the
“Initial Term”) of this Lease as set forth in Article 3, Tenant shall have the
      option to extend the Initial Term for one (1) period of five (5) years (the
      “Extension Term”). The option to extend the Initial Term shall be subject to and
      contingent upon each and every one of the conditions set forth hereinafter.
      Tenant's option to extend the Initial Term shall be exercisable by Tenant giving
      written notice of

     

    
      
        
        

      

      
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    exercise
      of such option to Landlord at least nine (9) months prior to the expiration
      of
      the Initial Term. In the event Tenant fails to give written notice of its intent
      to exercise such option as provided above, Tenant's option to extend the Initial
      Term shall be deemed to have been waived by Tenant and shall be of no further
      force or effect. In the event Tenant exercises its option in accordance with
      the
      provisions hereof, the Initial Term shall be extended accordingly, and all
      the
      references contained in this Lease to the term, whether by number of years
      or
      number of months, shall be construed to refer to the Initial Term as extended
      by
      the Extension Term, whether or not specific reference is made thereto in the
      Lease. Unless otherwise expressly provided to the contrary, the Extension Term
      shall be governed by all of the terms, conditions and covenants as set forth
      in
      the Lease except that there shall be no further option to extend the term of
      the
      Lease after the Extension Term. It is important to Landlord that it know whether
      or not this extension option will be exercised by Tenant so that it may seek
      a
      replacement tenant to avoid loss of rent, and, therefore, the times within
      which
      this option must be exercised and by which Tenant must reply to Landlord's
      proposed Market Rent (as hereinafter defined) are hereby made of the essence.
      This option to extend the term of the Lease shall be subject to and contingent
      upon each and every one of the following conditions:

     

    (a)   At
      the
      time Landlord receives Tenant's notice of exercise of the option, this Lease
      shall be in full force and effect;

     

    (b)   At
      the
      time Landlord receives Tenant's notice of exercise of the option, Tenant shall
      not be in default under the terms or provisions of this Lease, which default
      remains uncured after the giving of any applicable notice and the passage of
      any
      applicable grace period.

     

    (c)   Landlord
      shall have no obligation to do any work or perform any services for the
      Extension Term with respect to the Leased Premises, which Tenant agrees to
      accept in its then “As Is” condition;

     

    (d)   Subparagraphs
      (i) and (j) of Section 1.1 shall be deemed to have been amended, automatically,
      to change the base year for Base Real Estate Taxes and Base Operating Expenses
      to the calendar year in which the first day of the Extension Term falls, and
      estimated Additional Rent pursuant to Article 7 shall begin on January 1st
      of
      the next following year; and

     

    (e)   In
      lieu
      of the sums set forth in Section 4.1 of the Lease, the annual Fixed Rent to
      be
      paid by Tenant in monthly installments during the Extension Term shall be the
      greater of (i) Market Rent (as hereinafter defined) or (ii) the Fixed Rent
      and
      all Additional Rent pursuant to Article 7 of this Lease accrued for the last
      twelve (12) months of the Initial Term.

     

    
      
        
        

      

      
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    “Market
      Rent” shall mean the rental being collected by owners of other properties for
      new leases of space reasonably comparable in type, size, location and usage
      to
      the Leased Premises within Bergen County, New Jersey, for a term of
      approximately five years with similar tenant expense assumptions and
      contributions, determined as of the date (the "Determination Date") eight (8)
      months prior to the expiration of the Initial Term. Landlord shall notify Tenant
      ("Landlord's Determination Notice") of Landlord's determination of the Market
      Rent within sixty (60) days of the Determination Date. If Tenant disagrees
      with
      Landlord's determination, Tenant shall notify Landlord ("Tenant's Notice of
      Disagreement") within fifteen (15) days of the receipt of Landlord's
      Determination Notice. Time shall be of the essence with respect to Tenant's
      Notice of Disagreement, and the failure of Tenant to give such notice within
      the
      time period set forth above shall conclusively be deemed an acceptance by Tenant
      of the Market Rent as determined by Landlord and a waiver by Tenant of any
      right
      to dispute such Market Rent. If Tenant timely gives its Tenant's Notice of
      Disagreement, then the Market Rent shall be determined as follows: Landlord
      and
      Tenant shall, within thirty (30) days of the date on which Tenant's Notice
      of
      Disagreement was given, each appoint an Appraiser for the purpose of determining
      the Market Rent. An "Appraiser" shall mean a duly qualified impartial real
      estate appraiser who is a member of the American Institute of Real Estate
      Appraisers and who has at least ten (10) years experience in appraising the
      rental value of office properties comparable to the Building and located in
      Northern New Jersey. In the event that the two Appraisers so appointed fail
      to
      agree as to the Market Rent within a period of thirty (30) days after the
      appointment of the second Appraiser, such two Appraisers shall forthwith appoint
      a third Appraiser who shall make a determination in the manner hereinafter
      described within thirty (30) days thereafter. If such two Appraisers fail to
      agree upon such third Appraiser within ten (10) days following the last thirty
      (30) day period, such third Appraiser shall be appointed by the Bergen County
      Assignment Judge of the New Jersey Superior Court. Such two Appraisers or the
      third Appraiser, as the case may be, shall proceed with all reasonable dispatch
      to determine the Market Rent. Within fifteen (15) days following the appointment
      of the third Appraiser, each party shall submit to the third Appraiser a written
      report setting forth its determination of the Market Value of the applicable
      premises for the applicable term, together with such information on comparable
      rentals, or such other evidence as such party shall deem relevant. The third
      Appraiser shall, within thirty (30) days following the submission of such
      written reports render its decision by selecting the determination of Market
      Rent submitted by either the Appraiser selected by Landlord or the Appraiser
      selected by Tenant which, in the judgment of the third Appraiser, most nearly
      reflects the Market Rent of the applicable premises for the applicable term.
      It
      is expressly understood that such third Appraiser shall have no power or
      authority to select any Market Rent other than a Market Rent submitted by the
      Appraiser selected by Landlord or the Appraiser selected by Tenant, and the
      decision of such third Appraiser shall be final and binding upon the parties
      hereto. The decision of such Appraisers shall be final; such decision shall
      be
      in writing and a copy shall be delivered simultaneously to 

     

    
      
        
        

      

      
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    Landlord
      and to Tenant. If such Appraisers fail to deliver their decision as set forth
      above prior to the commencement of the Extension Term, Tenant shall pay Landlord
      the Fixed Rent at the rate as of the last day of the Initial Term, until such
      decision is so delivered. If the Market Rent as determined above is in excess
      of
      the actual rent paid, then Tenant, upon demand, shall pay to Landlord the
      difference between the actual rent paid and the Market Rent from the
      commencement of the Extension Term. Landlord and Tenant shall be responsible
      for
      and shall pay the fee of the Appraiser appointed by them respectively, and
      Landlord and Tenant shall share equally the fee of the third
      Appraiser.

     

    26.2   Option
      Personal to Original Tenant.
      The
      option to extend the Initial Term of the Lease set forth in Section 26.1 is
      personal to the original Tenant, and not to any assignee or sublessee, and
      is
      not appurtenant to the Leased Premises or to this Lease, and, accordingly,
      upon
      any assignment of the Lease or any sublease of all or any portion of the Leased
      Premises, the option to extend the Initial Term of the Lease shall
      terminate.

     

    ARTICLE
      27
      - EXPANSION OPTIONS

     

    27.1   Expansion
      Options.
      During
      the Term, Tenant shall have continuing options (“Expansion Options”) to lease
      (i) contiguous space on the fourth (4th)
      floor
      of the Building, and (ii) approximately 1,145 rentable square feet of space
      located on the first (1st)
      floor
      of the Building designated as Suite 017 (“Expansion Space”), as and when
      Expansion Space becomes available for leasing, for the rent and upon the other
      terms and conditions hereinafter set forth, which Expansion Options may not
      be
      severed from this Lease or separately sold, assigned or otherwise
      transferred.

     

    27.2   Expansion
      Options Subordinate to Existing Leases.
      Tenant’s Expansion Options are subject and subordinate to leases for Expansion
      Space in existence on the date of this Lease (“Existing Leases”), including any
      extension, renewal and expansion options included in such Existing Leases.
      Existing Leases shall also include leases for Expansion Space entered into
      between Landlord and third parties after the date of this Lease in accordance
      with the provisions hereof. Landlord shall have the right to renew or extend
      any
      Existing Lease, even though no right or option to renew or extend is included
      in
      such Existing Lease, and Tenant’s Expansion Options shall be subject and
      subordinate to such right on the part of Landlord.

     

    27.3   Notice
      of Availability of Expansion Space.
      Landlord shall not, after the date of this Lease, enter into any new lease
      for
      Expansion Space (except for the extension or renewal of any Existing Lease,
      whether or not the right or option to renew or extend is included in such
      Existing Lease) without first providing Tenant with written notice (the
“Availability Notice”) of the anticipated availability of such Expansion Space.
      The Availability Notice shall set forth a description of the Expansion Space
      anticipated to be available; the date on which Landlord reasonably anticipates
      that the Existing Lease for such Expansion Space shall terminate; the date
      on
      which Landlord reasonably anticipates that the commencement date of the
      Expansion Lease (as hereinafter defined) for such Expansion 

     

    
      
        
        

      

      
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    Space
      shall occur; and Landlord’s determination of Market Rent (as defined in Section
      26.1 hereof). An Availability Notice shall be delivered to Tenant not more
      than
      nine (9) months in advance of the date on which, in Landlord’s reasonable
      judgment, the Existing Lease for such Expansion Space is anticipated to
      terminate.

     

    27.4   Conditions
      of Exercise of Expansion Options.
      Each of
      Tenant’s Expansion Options, as provided in this Article 26, shall be conditioned
      upon and subject to each of the following:

     

    (a)   Tenant
      shall, within ten (10) business days of receipt of an Availability Notice,
      deliver to Landlord written notice (an “Option Notice”) of Tenant exercise of
      its Expansion Option with respect to the entire available Expansion Space
      described in the Availability Notice.

     

    (b)   If
      Tenant
      disagrees with Landlord's determination of the Market Rent, as set forth in
      an
      Availability Notice, Tenant's Option Notice shall affirmatively state that
      Tenant disagrees with such determination.

     

    (c)   Time
      shall be of the essence with respect to Tenant's Option Notice. The failure
      of
      Tenant to affirmatively state, in Tenant's Option Notice, that Tenant disagrees
      with Landlord's determination of the Market Rent shall conclusively be deemed
      an
      acceptance by Tenant of the Market Rent as determined by Landlord and a waiver
      by Tenant of any right to dispute such Market Rent.

     

    (d)   At
      the
      time Landlord receives Tenant's Option Notice, Tenant shall not be in default
      under the terms or provisions of this Lease, which default remains uncured
      after
      the giving of any applicable notice and the passage of any applicable grace
      period.

     

    (e)   As
      of the
      anticipated Commencement Date of the Expansion Lease, as set forth in an
      Availability Notice, the remaining term of this Lease (including any extension
      option which has been exercised) shall not be less than two (2)
      years.

     

    (f)   Landlord
      and Tenant shall execute a new lease (an "Expansion Lease") for such Expansion
      Space in form and upon terms substantially similar to and consistent with this
      Lease, except that any such Expansion Lease shall not contain any expansion
      options as set forth in this Article 26, and upon the further terms and
      conditions set forth in Section 26.6, within sixty (60) days of delivery of
      the
      Availability Notice.

     

    27.5   Waiver
      of Expansion Option.
      If
      Tenant shall, for any reason, fail to exercise its Expansion Option with respect
      to the entire Expansion Space described in an Availability Notice, within the
      time and in the manner herein provided, then (i) Tenant shall no longer have
      any
      Expansion Option with respect to such Expansion Space as provided herein, until
      such Expansion Space has again been leased to a third party and such lease,
      including any 

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

    extensions
      or renewals thereof, has terminated, and (ii) Landlord shall be free to lease
      such Expansion Space to a third party on whatever terms Landlord may determine,
      including, but not limited to, any number of renewal or extension
      options.

     

    27.6   Terms
      of Expansion Lease.
      Each
      Expansion Lease shall contain the following provisions:

     

    (a)   The
      commencement date of the Expansion Lease shall be the later of (i) thirty (30)
      days from the date of delivery of the Availability Notice, or (ii) the date
      on
      which Landlord delivers the Expansion Space to Tenant free and clear of all
      tenancies and occupancies. The term of the Expansion Lease shall be co-terminus
      with the Initial Term if the commencement date of the Expansion Lease occurs
      within the Initial Term, and co-terminus with the Extension Term if the
      commencement date of the Expansion Lease occurs within the Extension
      Term.

     

    (b)   Provided
      that the commencement date of the Expansion Lease is prior to the expiration
      of
      the Initial Term, Tenant shall have one (1) extension option upon the same
      terms
      and conditions as set forth in Article 26 of this Lease, except that as a
      condition of the exercise of such extension option, and of the exercise of
      the
      Extension Option under this Lease, Tenant shall contemporaneously exercise
      the
      Extension Option under this Lease and the extension option under the Expansion
      Lease.

     

    (c)   The
      fixed
      rent shall be Market Rent, as defined in Section 26.1 of this Lease. Market
      Rent
      shall be determined by Landlord as set forth in the Availability Notice, unless
      Tenant shall have affirmatively disagreed with such determination in Tenant’s
      Option Notice. In such latter event, Market Rent shall be determined in
      accordance with the applicable provisions of Section 26.1, with the following
      modifications:

     

    (i)   The
      Determination Date shall be the date of the Availability Notice;

     

    (ii)   References
      to “Landlord’s Determination Notice” shall mean, instead, the Availability
      Notice;

     

    (iii)   the
      base
      year for Base Real Estate Taxes and Base Operating Expenses shall be the
      calendar year in which the commencement date of the Expansion Lease falls,
      and
      estimated Additional Rent pursuant to Article 7 shall begin on January
      1st
      of the
      immediately following year; and

     

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

    (iv)   If
      Market
      Rent has not been determined prior to the commencement date of the Expansion
      Lease, then, until such determination has been made, Tenant shall pay to
      Landlord the Fixed Rent at the Market Rate as set forth in the Availability
      Notice, plus Additional Rent as payable under the Expansion Lease. If the Market
      Rent as determined above is in excess of the actual rent paid, then Tenant,
      upon
      demand, shall pay to Landlord the difference between the actual rent paid and
      the Market Rent from the commencement date of the Expansion Lease. If the Market
      Rent as determined above is less than the actual rent paid, then Tenant shall
      be
      entitled to a credit with respect to Fixed Rent in the amount of such
      over-payment, to be applied to first installment of Fixed Rent due and payable
      after the determination of Market Rent hereunder.

     

    (d)   Landlord
      shall have no obligation to make any alterations or improvements to any
      Expansion Space, or to do any other work in or with respect to any Expansion
      Space, and Tenant agrees to accept any Expansion Space "AS IS", in its condition
      and state of repair existing on the date of the applicable Availability Notice,
      and subject to reasonable wear and tear thereafter; provided, however, that,
      on
      the commencement date of any Expansion Lease, the furniture, furnishings and
      trade fixtures of any prior tenant shall have been removed. Tenant shall have
      the opportunity, immediately upon receipt of an Availability Notice, to inspect
      the applicable Expansion Space, and to have any architect, engineer, contractor
      or other representative of Tenant inspect such Expansion Space, and Tenant
      shall
      not rely on any statement, representation or undertaking, written or oral,
      by or
      on behalf of Landlord with respect to the condition or state repair of such
      Expansion Space.

     

    (e)   Landlord
      shall endeavor to deliver possession of the Expansion Space to Tenant on or
      before the estimated commencement date designated in the Availability Notice,
      subject to delays beyond the reasonable control of Landlord (including without
      limitation the failure of any existing tenant occupying the Expansion Space
      to
      vacate such Expansion Space upon the termination of such tenant's lease) or
      by
      the action or inaction of Tenant. If Landlord is unable to deliver possession
      of
      the Expansion Space to Tenant on such estimated commencement date, then the
      Expansion Lease shall not be affected thereby but, in such case, the
      commencement date shall be deemed to be postponed until the date when possession
      of the Expansion Space is delivered to Tenant and Tenant shall have not have
      any
      claim against Landlord, and Landlord shall have no liability to Tenant, by
      reason of any such postponement. The parties hereto agree that this subsection
      (d) constitutes an express provision as to the time at which Landlord shall
      deliver the Expansion Space to Tenant, and Tenant hereby waives any rights
      to
      rescind any Expansion Lease, or any Option Notice, which Tenant might otherwise
      have pursuant to any law now or hereafter in force.

     

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      the
      parties hereto have hereunto set their hands and seals, or caused these presents
      to be signed by their proper corporate officers and their proper corporate
      seal
      to be hereto affixed, the day and year first above written.

     

    
      
        	
                ATTEST:

                 

              	 	
                VENTURE
                  HACKENSACK HOLDING, INC.,

                A
                  New Jersey Corporation, Landlord

                 

              
	 	 	
                BY:

              	
                Forest
                  Green Management Corporation, 

                Managing
                  Agent

                 

              
	 	 	
                By:

              	
                /s/Joseph
                  Schachter

              
	 	 	 	
                Joseph
                  Schachter, Vice President

              
	 	 	 
	
                ATTEST:

                 

              	 	
                CAPRIUS,
                  INC.,

                A
                  Delaware corporation, Tenant

                 

              
	
                /s/Jonathan
                  Joels

              	 	
                By:

              	
                /s/George
                  Aaron

              
	
                Jonathan
                  Joels, Secretary

              	 	 	
                Name: George
                  Aaron

                Title: President

              
	 	 	 	 

      

       

      
        
          
          

        

        
          42

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