Document:

Prepared by MERRILL CORPORATION

Exhibit 10.13

LOAN AGREEMENT

This

Loan Agreement (“Agreement”) dated as of July 16, 2001 (the “Effective

Date”), is by and between LATITUDE COMMUNICATIONS, INC., a Delaware

corporation (the “Lender”), and RICK M. McCONNELL AND ANGELA A.

McCONNELL (together, the “Borrowers”).

The

Borrowers desire to borrow, and the Lender is willing to lend to the Borrowers,

the amount of $400,000 on a secured basis under the terms and conditions of

this Agreement.

The

Lender and the Borrowers agree as follows:

1.             The Loan.  Subject to the terms and conditions contained

herein, the Lender will lend to the Borrowers the amount of $400,000 (the “Loan”)

on the date hereof.  The Loan and all

obligations hereunder shall be due and payable on the date four years following

the date of this Agreement, provided, however, that the Borrowers may prepay

without penalty all or part of the Loan and the accrued interest thereunder at

any time.

2.             The Note.  In consideration of the Lender’s delivery of

the Loan, the Borrowers will execute a promissory note (the “Note”) in

the form attached hereto as Exhibit A in the principal amount of the

Loan and bearing interest at 5.02% per annum, compounded anually.

3.             Deed of Trust.  The Note shall be secured by a deed of trust

in a form acceptable to the Lender (the “Deed of Trust”) given by the

Borrowers to the Lender with respect to the Borrowers’ principal residence

located at 753

Berry Avenue, Los Altos, CA 94024 (the “Property”). 

The Lender may, if the Lender so elects, but without obligation to do

so, at any time during the term of this Agreement record the Deed of Trust

against the Property in the official records of the county in which the

Property is located.  The Lender agrees

that the Property shall be released as collateral and the Deed of Trust shall

be released in full and cancelled on the Loan Repayment Date, and that Lender

will take all reasonable actions to accomplish the foregoing release, including

recording certain documents.

4.             Representations and Covenants of

Borrowers.  Subject to the Schedule

of Exceptions (if any) attached as Exhibit B, the Borrowers hereby

jointly and severally make the following representations and warranties to the

Lender, and acknowledge that the Lender is relying on such representations in

making the Loan:

(a)           The Borrowers have the legal capacity

to enter into and perform their obligations under this Agreement, the Note and

the Deed of Trust (the “Transaction Documents”).  The Transaction Documents have been duly

executed and delivered by the Borrowers and constitute, legal, valid and

binding agreements of the Borrowers enforceable against the Borrowers in

accordance with their respective terms. 

The Note will be free of restrictions on transfer other than under

applicable federal and state securities laws and as provided herein.

(b)           No authorization, consent, approval,

license, exemption or other action by, and no registration, qualification,

designation, declaration or filing with, any Authority (as defined below) or

any other person is required to be made or obtained by the Borrowers in order

to execute or deliver the Transaction Documents or to consummate the

transactions contemplated hereby or thereby other than the recording of the

Deed of Trust to perfect the security interest in the Property.  “Authority” shall mean any government

or political subdivision, or any agency, authority, bureau, central bank,

commission, department or instrumentality of either, or any court, tribunal,

grand jury, arbitrator or mediator, in each case whether federal, state, local

or foreign.

(c)           Neither the execution and delivery of

the Transaction Documents nor the consummation of the transactions contemplated

hereby or thereby nor the performance of or compliance with the terms and

conditions in the Transaction Documents will (i) violate any Law (as defined

below); (ii) conflict with or result in a breach or violation of or a default

or loss of benefit under or permit the acceleration of any obligation under any

provision of any agreement or instrument to which any Borrower is a party or by

which any Borrower or any of the Borrowers’ properties is bound, or (iii)

except as provided in the Deed of Trust, result in the creation or imposition

of any Lien (as defined below) on any property or asset of any Borrower.  “Law” shall mean any judgment,

decree, order, statute, law, ordinance, rule or regulation of any Authority

(including common law), constitution, statute, treaty, regulation, rule,

ordinance, judgment, order, foreign injunction, writ, decree or award of any

Authority.  “Lien” shall mean any

voluntary or involuntary lien, security interest, mortgage, pledge, charge,

encumbrance, title defect or title retention agreement, except for such liens

which individually and in the aggregate do not exceed $10,000.

(d)           There are no claims, prosecutions,

actions, demands, suits, arbitrations, proceedings, hearings, studies,

investigations or reviews pending or, to the best of the Borrowers’ knowledge,

threatened against or affecting the Borrowers or any of their respective

properties or assets at law, in equity or otherwise, in, before or by any

Authority.  The Borrowers do not know of

any reasonably likely basis for any such claims, prosecutions, actions,

demands, suits, arbitrations, proceedings, hearings, studies, investigations or

reviews.

(e)           The Borrowers have good and

marketable title to or, in the case of leases and licenses, valid and

subsisting leasehold interests or licenses in, all of their properties and

assets of whatever kind (whether real or personal, tangible or intangible) free

and clear of any Liens.

(f)            No Event or Default (as defined

below) has occurred.

5.             Covenants.  The Borrowers hereby covenant that so long

as the Note is outstanding:

(a)           The Borrowers shall promptly give

written notice to the Lender of:

i)              Any Event of

Default or any event which, upon giving of notice or lapse of time or both,

would constitute an Event of Default; and

ii)             any event or

occurrence which would cause any of the representations or warranties set forth

in the Transaction Documents to be inaccurate or not true in any material

respect at any time after the date of this Agreement.

(b)           The Borrowers shall not create,

incur, assume or permit to exist Liens on any of its property except as set

forth on the Schedule of Exceptions.

(c)           The Borrowers shall comply in all

material respects with all Laws to which they or their properties or assets are

or may become subject.

6.             Events of Default and Remedies.

(a)           Events of Default.  Any one or more of the following

shall constitute an “Event of Default”:

i)              The Borrowers

default in the payment of any principal or interest due under the Note when the

same shall have become due;

ii)             the Borrowers fail

to observe or perform any covenant, condition or agreement in any of the

Transaction Documents, which is not remedied within 10 days after the Lender

notifies the Borrowers that such failure has occurred; provided that such 10

day period shall be reduced by the number of days that a Borrower knew of such

failure, but shall in no event be reduced to less than 5 days;

iii)            any representation

or warranty made by the Borrowers in any of the Transaction Documents shall

prove to have been false, incorrect, incomplete or misleading in any material

respect when made or deemed made, such representation or warranty continues to

be material and the Borrowers shall fail to correct the fact or circumstance

which made such representation or warranty materially false, incorrect,

incomplete or misleading within 10 days after the Lender notifies the Borrowers

of such misrepresentation; provided that such 10 day period shall be reduced by

the number of days in excess of 5 days that a Borrower knew the information

that caused such representation or warranty to be false, incorrect, incomplete

or misleading in such material respect, but shall in no event be reduced to

less than 5 days;

iv)           entry of a decree or

order by a court of competent jurisdiction for relief in respect of a Borrower

in any involuntary case under applicable bankruptcy, insolvency or other

similar Laws now or hereafter in effect, or appointing a receiver, liquidator,

assignee, custodian, trustee, sequestrator or similar official of a Borrower or

any substantial part of his or her assets, or ordering the winding up or

liquidation of either or their affairs, if such decree or order shall remain

unstayed and in effect for a period of 60 days; or

v)            commencement by a

Borrower of a voluntary case under any applicable bankruptcy, insolvency or

other similar Laws now or hereafter in effect, or consent by a Borrower to the entry

of an order for relief in any involuntary case under any such Law or to the

appointment of or taking possession by a receiver, liquidator, assignee,

trustee, sequestrator or similar official of a Borrower or any substantial part

of its property, or any general assignment by a Borrower for the benefit of

creditors, or failure by a Borrower generally to pay its debts as they become

due, or any action by a Borrower in furtherance of any of the foregoing.

(b)           If any one or more of the foregoing

Events of Default occur, the Lender may at any time (unless all defaults shall

theretofore have been remedied) declare the entire unpaid principal of and all

accrued interest on the Note immediately due and payable without presentment,

demand, protest or other notice of any kind, all of which are hereby expressly

waived by the Borrowers.  On any such

acceleration of the maturity of the Note, the Borrowers shall immediately pay

to the Lender, in lawful money of the United States, the entire principal

balance unpaid on such Note and interest accrued and unpaid on the Loan to the

date of such payment.

7.             Term and Termination.  The term of this Agreement shall begin on

the Effective Date and end on the date all amounts under the Note are repaid in

full.

8.             Miscellaneous Provisions.

(a)           Loss, Theft, Etc. of Note.  Upon receipt of evidence reasonably

satisfactory to the Borrowers of the loss, theft, mutilation or destruction of

the Note and in the case of any such loss, theft or destruction upon delivery

of a bond of indemnity in such form and amount as shall be reasonably

satisfactory to the Borrowers, or in the event of such mutilation upon

surrender and cancellation of such Note, the Borrowers will make and deliver

without expense to the holder thereof, a new Note, of like tenor, in lieu of

such lost, stolen, destroyed or mutilated Note.  If the Lender is the owner of any such lost, stolen or destroyed

Note, then the affidavit of the Lender setting forth the fact of loss, theft or

destruction and of its ownership of such Note at the time of such loss, theft

or destruction shall be accepted as satisfactory evidence thereof and no

further indemnity shall be required as a condition to the execution and

delivery of a new Note other than the written agreement of such owner to indemnify

the Borrowers.

(b)           Powers and Rights Not Waived:

Remedies Cumulative.  No delay or

failure on the Lender’s part in the exercise of any power or right shall

operate as a waiver thereof, nor shall any single or partial exercise of the

same preclude any other or further exercise thereof or the exercise of any

other power or right, and the Lender’s rights and remedies are cumulative to

and are not exclusive of any rights or remedies the Lender would otherwise

have, and no waiver or consent given or extended pursuant hereto shall extend

to or affect any obligation or right not expressly waived or consented to.

(c)           Successors and Assigns.  This Agreement shall inure to the benefit of

the respective heirs, personal representatives, successors and assigns of the

parties hereto.  The Borrowers may not

assign their rights and/or duties under this Agreement to a third party without

the prior written consent of the Lender, which may be withheld in its sole

discretion.

(d)           Governing Law.  This Agreement and all acts and transactions

pursuant hereto and the rights and obligations of the parties hereto shall be

governed, construed and interpreted in accordance with the laws of the State of

Delaware.

(e)           Entire Agreement.  The Transaction Documents constitute the entire

agreement of the parties hereto with respect to the subject matter hereof and

supersedes all prior agreements and understandings related to such subject

matter.

(f)            Modification.  This Agreement shall not be amended without

the written consent of both parties hereto.

(g)           Construction.  This Agreement is the result of negotiations

between and has been reviewed by each of the parties hereto and their

respective counsel; accordingly, this Agreement shall be deemed to be the

product of all of the parties hereto, and no ambiguity shall be construed in

favor of or against any one of the parties hereto.  The Borrowers acknowledge that the Lender has made no

representation or warranty to the Borrowers concerning the income tax

consequences of the Loan, and the Borrowers shall be solely responsible for

ascertaining and bearing such tax consequences.

(h)           Titles and Subtitles.  The titles and subtitles used in this

Agreement are used for convenience only and are not to be considered in

construing or interpreting this Agreement.

(i)            Notices.  Any notice required or permitted by this

Agreement shall be in writing and shall be personally delivered or sent by

prepaid registered or certified mail, return receipt requested, or overnight

express courier or facsimile transmission, addressed to the other party at the

address shown below or at such other address for which such party gives prior

written notice of hereunder.  Notices

sent by registered or certified mail shall be deemed to have been delivered 72

hours after deposit in the United States mail. 

Notice delivered by overnight express courier or facsimile shall be

deemed delivered upon receipt, as evidenced by facsimile confirmation or

overnight courier confirmation thereof.

(j)            Counterparts.  This Agreement may be executed in two or

more counterparts, each of which shall be deemed an original and all of which

together shall constitute one instrument.

(k)           Further Acts.  Each party hereto agrees to execute,

acknowledge and deliver or to cause to have executed, acknowledged and

delivered, such other and further instruments and documents as may reasonably

be requested by the other to carry out the purposes of this Agreement.

(l)            Voluntary Execution; Legal

Counsel.  This Agreement and the

exhibits hereto are executed voluntarily and without any duress or undue

influence on the part or behalf of the parties hereto, with the full intent of

creating the obligations and security interests described herein and

therein.  The parties acknowledge

that:  (a) they have read this agreement

and the exhibits hereto; (b) they have been represented in the preparation,

negotiation, and execution of this Agreement and exhibits hereto by legal

counsel of their own choice or they have voluntarily declined to seek such

counsel; (c) they understand the terms and consequences of this Agreement and

the exhibits hereto and of the obligations and security interests they create;

and (d) they are fully aware of the legal and binding effect of this Agreement

and the exhibits hereto.

(m)          Survival.  Each of the obligations of Borrowers

hereunder, and the liability of Borrowers for any failure of the

representations or warranties set forth herein to be accurate and complete,

shall survive the closing of the Loan described herein for the entire term of

the Loan.

[signature page

follows]

The

undersigned have executed this Loan Agreement as of the date first written

above.

 

	

  BORROWERS:

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

    /s/  Rick M McConnell

  
	

  RICK M. McCONNELL

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

    /s/  Angela A. McConnell

  
	

  ANGELA A. McCONNELL

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

  Address:

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

  LENDER:

  	

   

  
	

   

  	

   

  
	

  LATITUDE COMMUNICATIONS, INC.

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

  By:

  	

  /s/ Emil C.W. Wang

  
	

   

  	

   

  
	

  Name:

  	

  Emil C. W. Wang

  
	

   

  	

   

  
	

  Title:

  	

  CEO

  
				

 

 

 

 

 

 

 

 

EXHIBIT

B

SCHEDULE

OF EXCEPTIONS

 

                This Schedule of

Exceptions is made and given pursuant to Section 5 of the Loan Agreement dated

as of the date hereof (the “Loan Agreement”), by and among RICK M.

McCONNELL AND ANGELA A. McCONNELL (together, the “Borrowers”) and

LATITUDE COMMUNICATIONS, INC. (the “Lender”). 

The information disclosed hereunder shall be deemed to be disclosed and

incorporated into any section number under the Loan Agreement where disclosure

would be appropriate.  Any terms used in

this Schedule of Exceptions shall have the meaning defined for them in the Loan

Agreement unless otherwise defined herein.

 

[To be completed

by Borrowers -- check one box only]

1.             ý            There are no exceptions to the

Borrowers’ representations and covenants set forth in Section 4.

 

2.             o            The following are exceptions to the

Borrowers’ representations and covenants set forth in Section 4:

 

                                                                                                                                                                                                            

 

                                                                                                                                                                                                            

 

                                                                                                                                                                                                            

 

                                                                                                                                                                                                            

 

                                                                                                                                                                                                            

 

                                                                                                                                                                                                            

 

                                                                                                                                                                                                            

 

                                                                                                                                                                                                            

 

                                                                                                                                                                                                            

 

                                                                                                                                                                                                            

 

EXHIBIT A

SECURED FULL-RECOURSE PROMISSORY NOTE

 

 

	

  $400,000.00

  	

  Santa Clara, California

  
	

   

  	

  July 16, 2001

  

 

                FOR

VALUE RECEIVED, the undersigned, Rick M. McConnell and Angela A. McConnell

(together, the "Borrowers") promise to pay to Latitude

Communications, Inc., a Delaware corporation ("Lender"), or order, at

the principal office of Lender, or at such other place as Lender may from time

to time designate in writing, the sum of Four Hundred Thousand Dollars ($400,000.00),

plus accrued and unpaid interest thereon. 

Except as provided below in the case of a default in payment, the

principal amount of this Note shall bear interest at a rate of 5.02% per annum,

compounded annually.  The entire unpaid

balance, principal and interest, shall be due and payable four years from the

date of this Note (the “Due Date”).

 

                1.             Definitions. The following terms used in this

Agreement shall have the following meanings:

(a)           “Cause” shall mean (i) gross

negligence or willful misconduct in the performance of the Employee’s duties to

the Company; (ii) repeated unexplained or unjustified absence from the Company;

(iii) a material and willful violation of any federal or state law; (iv)

refusal or failure to act in accordance with any specific direction or order of

the Company; (v) commission of any act of fraud with respect to the Company; or

(vi) conviction of a felony or a crime involving moral turpitude causing

material harm to the standing and reputation of the Company, in each case as

determined by the Board of Directors of the Company.

(b)           “Change of Control” means the

occurrence of any of the following events:

(i)            The stockholders of

the Company approve an agreement for the sale of all or substantially all of

the assets of the Company; or

(ii)           The stockholders of

the Company approve a merger or consolidation of the Company with any other

corporation, other than a merger or consolidation which would result in the

voting securities of the Company outstanding immediately prior thereto

continuing to represent (either by remaining outstanding or by being converted

into voting securities of the surviving entity) at least fifty percent (50%) of

the total voting power represented by the voting securities of the Company or

such surviving entity outstanding immediately after such merger or

consolidation; or

(iii)          Completion of a

tender or exchange offer or other transaction or series of transactions

resulting in less than a majority of the outstanding voting shares of the

surviving corporation being held, immediately after such transaction or series

of transactions, by the holders of the voting shares of the Company outstanding

immediately prior to such transaction or series of transactions.

(c)           “Employee” shall mean Rick M.

McConnell.

(d)           “Company” shall mean Latitude

Communications, Inc. or such surviving entity immediately after a Change of

Control.

(d)           “Involuntary Termination” shall mean

(i) without the Employee’s express written consent, the significant reduction

of the Employee’s duties, authority or responsibilities, relative to the

Employee’s duties, authority or responsibilities as in effect immediately prior

to such reduction, or the assignment to Employee of such reduced duties,

authority or responsibilities; (ii) without the Employee’s express written

consent, a substantial reduction, without good business reasons, of the

facilities and prerequisites (including office space and location) available to

the Employee immediately prior to such reduction; (iii) a material reduction by

the Company in the base salary of the Employee as in effect immediately prior

to such reduction; (iv) a material reduction by the Company in the kind or

level of employee benefits, including bonuses, to which the Employee was

entitled immediately prior to such reduction with the result that the

Employee’s overall benefits package is significantly reduced; (v) any purported

termination of the Employee by the Company which is not effected for Cause, or

any purported termination for which the grounds relied upon are not valid; or

(vi) any act or set of facts or circumstances which would, under California

case law or statute, constitute a constructive termination of the Employee.

(e)           “Termination Date” shall mean (i) the

date on which a notice of termination is given, provided that if within thirty

(30) days after the Company gives the Employee notice of termination, the

Employee notifies the Company that a dispute exists concerning the termination

or the benefits due pursuant to this Agreement, then the Termination Date shall

be the date on which such dispute is finally determined, either by mutual

written agreement of the parties, or by a final judgment, order or decree of a

court of competent jurisdiction (the time for appeal therefrom having expired

and no appeal having been perfected), or (ii) if the Agreement is terminated by

the Employee, the date on which the Employee delivers the notice of termination

to the Company.

 

(f)            “Loan Agreement” shall mean the Loan

Agreement between the Company and the Borrowers, dated as of the date hereof.

2.             Termination.

 

(a)           Involuntary

Termination.  If the Employee’s

employment with the Company is Involuntarily Terminated for any reason other

than for Cause, all of the then outstanding principal and accrued interest

under this Note shall become due and payable either within twenty four months

following the Termination Date or on the Due Date, whichever occurs earlier.

 

(b)           Voluntary Termination.  If the Employee voluntarily terminates his

employment with the Company, all of the then outstanding principal and accrued

interest under this Note shall become due and payable either within twelve

months following the Termination Date or on the Due Date, whichever occurs

earlier.

 

(c)           Termination For Cause.  If the Employee’s employment with the Company

is terminated for Cause, all of the then outstanding principal and accrued

interest under this Note shall become due and payable immediately.

 

                3.             Borrowers’ Obligations.  Borrowers shall grant Lender a security

interest in certain real property located at 753 Berry Avenue, Los Altos, California

94024 (the "Property") and shall cooperate in any manner

and take such actions requested by Lender to grant, memorialize and perfect

such security interest under all applicable laws, including but not limited to

the preparation and filing of a customary land mortgage covering the Property,

which land mortgage shall provide, among other things, that upon default by

Borrowers upon the covenants and agreements under such land mortgage, the

holder of this Note may declare the entire principal amount outstanding under

this Note, and any accrued interest thereon, to be immediately due and payable.

 

                4.             Acceleration.  If an Event of Default (as defined in the

Loan Agreement) shall occur, or if the Borrowers shall sell, convey or alienate

the Property, or any part thereof, or any interest therein, or shall be

divested of their title or any interest therein in any manner or way, whether

voluntarily or involuntarily, without the written consent of the holder hereof

being first had and obtained, the holder of this Note shall have the right, at

its option, to declare any indebtedness or obligations hereunder immediately

due and payable.  Borrowers shall notify

the holder of this Note promptly in writing of any transaction which may give

rise to such right of acceleration. 

Borrowers shall pay to the holder of this Note direct, ascertainable and

documented damages the holder may sustain by reason of Borrowers' breach of the

covenant of notice contained in this paragraph.

 

                5.             Payment.  Amounts due under this Note shall be payable

in lawful money of the United States of America and in immediately available

funds free and clear of and without deduction for any present or future taxes,

restrictions or conditions of any nature. 

Any installment of principal due under this Note which is not paid when

due shall bear interest at the rate of ten percent (10%) per annum, or, if

less, the highest rate permitted by law from the date such payment became due

until paid.  All payments under this Note

shall be applied first to any accrued and unpaid interest and then to

principal.  Borrowers shall have the

right to pay, without penalty or premium, all or any portion of the outstanding

principal amount of this Note prior to the date for payment specified above.

 

                6.             Full Recourse.  Borrowers acknowledge that notwithstanding

the foregoing, the obligations under this Note are with full recourse to

Borrowers and Borrowers shall have full personal liability for any amounts of

principal or interest, or any other payments due under this Note, without

regard to the value of the Property.

 

                7.             Action to Collect on Note.  Borrowers waive presentment, protest and

demand, the notice of protest, demand, dishonor and nonpayment of this Note and

diligence in taking any action to collect any amounts owing under this Note by

proceeding against any of the rights and interests in and to the Property,

securing the payment of this Note.  If

action is instituted on this Note, Borrowers agree to pay such reasonable sum

as attorney's fees as the court may fix and award in such action.

 

                IN WITNESS

WHEREOF, Borrowers have executed this Note as of the date first written above.

 

 

	

   

  	

    /s/ 

  Rick M. McConnell

  
	

   

  	

  Rick M. McConnell

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

    /s/ 

  Angela A. McConnell

  
	

   

  	

  Angela A. McConnellPrepared by MERRILL CORPORATION

 

CH&S Draft - 8/14/2001

3298622_5.DOC

 

	

  BUILDING 311

  THE ARSENAL

  WATERTOWN, MASSACHUSETTS

  
	

  SUBLEASE

  BASIC

  INFORMATION

  

 

	

   

  	

   

  
	

  DATE:

  	

  As of August 1, 2001

  
	

   

  	

   

  
	

  SUBLESSOR:

  	

  Arthur D. Little, Inc.,

  a

  Massachusetts corporation

  
	

   

  	

   

  
	

  SUBLESSEE:

  	

  Primix Solutions Inc.,

  a

  Delaware corporation

  
	

   

  	

   

  
	

  SUBLEASED

  	

   

  
	

  PREMISES:

  	

  Portion of fourth floor

  
	

   

  	

  Building 311

  
	

   

  	

  The Arsenal

  
	

   

  	

  Watertown,

  Massachusetts

  
	

   

  	

   

  
	

  NET RENTABLE

  	

   

  
	

  AREA OF SUBLEASED

  	

   

  
	

  PREMISES: 

  	

  36,560 square feet

  
	

   

  	

   

  
	

  TERM COMMENCEMENT

  	

   

  
	

  DATE:

  	

  August 1, 2001

  
	

   

  	

   

  
	

  RENT COMMENCEMENT

  	

   

  
	

  DATE:

  	

  August 1, 2001

  
	

   

  	

   

  
	

  TERM EXPIRATION:

  	

  See Section 3 

  
	

   

  	

   

  
	

  BASE RENT:

  	

  For the period from

  August 1,
 2001 through December 31, 2005:

  Nine Hundred Fourteen Thousand

  ($914,000) Dollars ($25.00 per

  rentable square foot) per year.

  
	

   

  	

   

  
	

   

  	

  For the period from

  January 1,

  2006 through December 31, 2010:

  Nine Hundred Eighty-Seven

  Thousand One Hundred Twenty

  ($987,120) Dollars ($27.00 per

  rentable square foot) per year.

  

 

	

   

  	

   

  
	

  INCREMENTAL ADDITIONAL

  	

   

  
	

  RENT:

  	

  $    846,570.75

  
	

   

  	

   

  
	

  SECURITY DEPOSIT:

  	

  $    685,500.03

  
	

   

  	

   

  
	

  PERMITTED USES:

  	

  Corporate offices

  
	

   

  	

   

  
	

  SUBLESSEE’S AND

  	

   

  
	

  SUBLESSOR’S ADDRESS

  	

   

  
	

  FOR NOTICES:

  	

  See Section 15

  
	

   

  	

   

  
	

  EXHIBITS:

  	

  Exhibit A – Copy of

  Master Lease 

  
	

   

  	

  Exhibit B – Diagram of

  Subleased Premises

  
	

   

  	

  Exhibit C – Expansion

  Space

  

 

[remainder

of page intentionally left blank]

 

SUBLEASE

This Sublease is entered into as of August 1, 2001, by

and between Arthur D. Little, Inc. (“Sublessor”) and Primix Solutions Inc.

(“Sublessee”), as a sublease under that certain Lease dated as of June 24, 1999

as amended by a First Amendment to Lease (the “First Amendment”) dated as of

May __, 2000 and by a Second Amendment to Lease dated as of August 24, 2000 (as

further amended from time to time after the date hereof, the “Master Lease”),

between Charles River Business Center Associates, L.L.C. (“Master Lessor”), as

Lessor, and Arthur D. Little, Inc., as Lessee. 

A copy of the Master Lease is attached hereto as Exhibit A.

WHEREAS, Sublessee desires to sublease from Sublessor

and Sublessor desires to sublease to Sublessee 36,560 net rentable square feet

on the 4th floor of the premises at Building 311, The Arsenal, Watertown,

Massachusetts, leased by Master Lessor to Sublessor under the Master Lease, on

the terms and conditions set forth below.

WITNESSETH

Sublessor hereby subleases to Sublessee and Sublessee

hereby subleases from Sublessor the area and space described in Section 1 below

as the Subleased Premises for the term and subjectto the terms,

covenants, agreements, and conditions hereinafter set forth, to each and all of

which Sublessor and Sublessee hereby mutually agree.

1.             Subleased Premises.  The “Subleased Premises” consist of 36,560

square feet of net rentable area on the 4th floor of Building 311, The Arsenal,

Watertown, Massachusetts (the “Building”), as shown on Exhibit B

hereto.  Sublessor hereby subleases to

Sublessee, and Sublessee hereby hires from Sublessor, the Subleased

Premises.  The Subleased Premises

excludes exterior faces of exterior walls, the common stairways and stairwells,

elevators and elevator wells, fan rooms, electric and telephone closets,

janitor closets, and pipes, ducts, conduits, wires and appurtenant fixtures

serving exclusively or in common other parts of the Building, but include all

Sublessee special installations, stairs, special flues, special air

conditioning facilities and specially installed or leased telephone or electric

switchboards.  If the Subleased Premises

includes less than the entire rentable area of any floor, the Subleased Premises

exclude the common corridors, elevator lobby and toilets located on such floor.

Subject to reasonable rules of general applicability

to all other occupants in the Building from time to time made by Sublessor of

which Sublessee is given notice and the Rules and Regulations (as defined in the

Master Lease), Sublessee shall have, as appurtenant to the Premises, the right

to use in common with other occupants of the Building:

(a)           The elevator shafts, fire escapes,

interior stairwells and entrances and exits to the Building;

(b)           All installations designed and

intended for common use and serving the Subleased Premises such as but not

limited to telephone, electricity, gas, hot and cold water, sewer, heat,

ventilation and air conditioning;

(c)           All apparatus and equipment designed

and intended for common use and serving the Subleased Premises such as but not

limited to elevators, tanks, pumps, motors, electrical switchgear, fans,

compressors and control apparatus and equipment, excluding from such apparatus

and equipment all parts thereof, and all items affixed or connected thereto,

not designated or intended for common use; and

(d)           If the Subleased Premises include

less than the entire rentable floor area of any floor, the common toilets,

corridors and elevator lobby of such floor.

Sublessor reserves the right from time to time,

without unreasonable interference with Sublessee’s use:  (i) to install, use, maintain, repair,

replace and relocate for service to the Subleased Premises and/or other parts

of the Building, pipes, ducts, conduits, wires and appurtenant fixtures,

wherever located in the Subleased Premises or Building, and (ii) to alter or

relocate any other common facility, provided that substitutions are

substantially equivalent or better. 

Installations, replacements and relocations referred to in clause (i)

above shall be located, so far as practicable, in the central core area of the

Building, above ceiling surfaces, below floor surfaces or within perimeter

walls of the Subleased Premises.

2.             Incorporation of Master Lease.  All of the terms, covenants, and conditions

of the Master Lease, insofar as they relate to the Subleased Premises, are

hereby incorporated by reference in this Sublease and made a part hereof as if

the same were set forth in full in this Sublease, except:

(a)           the basic lease provisions applicable

to this Sublease shall be as set forth on the first page hereof, and shall

supersede the comparable provisions in the Master Lease;

(b)           the Base Rent, Incremental Additional

Rent, and additional rent payable by Sublessee to Sublessor in respect of the

Subleased Premises shall be in the amount and shall be payable as provided in

Section 4 hereof;

(c)           for defaults in the payment of Base

Rent, Incremental Additional Rent, additional rent (including Sublessee's share

of Base Building Operating Expenses, Operating Expenses of the Complex and

Taxes (each as defined in the Master Lease) increases), amounts on account of

the Security Deposit, or any other sums or amounts due under this Sublease

(whether characterized as rent, additional rent, or otherwise), the grace

period shall be five (5) calendar days after written notice to Sublessee (it

being agreed, however, that Sublessee shall not be entitled to, and Sublessor

shall not be obligated to deliver, more than one (1) such notice for any monetary

or payment default under this Sublease during any twelve (12) month period

during the Term hereof, and after Sublessee has received one (1) such notice of

monetary default during any such twelve (12) month period (regardless of

whether such default is cured by Sublessee), the grace period for any and all

subsequent monetary and payment defaults under this Sublease during such twelve

(12) month period (whether such subsequent defaults are similar in nature to or

different from the monetary or payment default for which Sublessee received

such written notice) shall be five (5) calendar days with no notice);

(d)           for defaults other than payment

defaults, the grace period shall be five (5) calendar days less than provided

for Sublessor, as lessee, under the Master Lease;

(e)           Sublessor's Extension Options and

Right of First Offer (each as described in Exhibit M of the Master Lease) and

Sublessor's signage rights (as described in Section 5.1, Exhibit J and Exhibit

S of the Master Lease) shall not operate for the benefit of Sublessee and may

not be enforced by Sublessee;

(f)            the following sections of the Master

Lease (the "Excluded Sections") shall not be applicable to this

Sublease:

	

  Article IV:

  	

  Commencement and Condition, excluding:

  
	

   

  	

  Section

  4.2(e):

  	

  Landlord

  Covenants Re: Base

  
	

   

  	

   

  	

  Building

  (which shall be applicable),

  
	

   

  	

   

  	

  and

  
	

   

  	

  Section

  4.3:

  	

  Conclusiveness

  of Landlord's

  
	

   

  	

   

  	

  Performance

  (which shall be

  
	

   

  	

   

  	

  applicable),

  and

  
	

  Article

  VI:

  	

  Assignment

  and Subletting, excluding:

  
	

   

  	

  Section

  6.3:

  	

  Attornment

  by Subtenant (which shall be

  
	

   

  	

   

  	

  applicable)

  

 

	

  Section

  1.2:

  	

   

  	

  Basic

  Data

  
	

  Section

  2.2(b):

  	

   

  	

  Tenant's

  Share of Parking Spaces

  
	

  Section

  2.2(d):

  	

   

  	

  Common

  Facilities/changes

  
	

  Section

  5.1(c):

  	

   

  	

  Watertown

  Zoning Ordinance/permits or approval

  
	

  Section

  5.2(a):

  	

   

  	

  Installations

  and Alterations by Tenant

  
	

  Section

  5.2(e):

  	

   

  	

  Future

  Expansion Space

  
	

  Section

  7.4(e):

  	

   

  	

  Service

  Interruption (except to the extent Sublessee

  
	

   

  	

   

  	

  has

  the benefit of the rent abatement set forth in

  
	

   

  	

   

  	

  Section

  2(g) hereof)

  
	

  Section

  7.5:

  	

   

  	

  Electricity

  
	

  Section

  7.6:

  	

   

  	

  Tenant's

  Right to Self-Help

  
	

  Section

  9.3

  	

   

  	

  Utility

  Payments

  
	

  Section

  10.1:

  	

   

  	

  Indemnity

  
	

  Section

  12.1:

  	

   

  	

  Abatement

  of Rent

  
	

  Section

  12.2:

  	

   

  	

  Landlord's

  Right of Termination

  
	

  Section

  12.3:

  	

   

  	

  Restoration

  
	

  Section

  12.5:

  	

   

  	

  Tenant’s

  Insurance

  
	

  Section

  14.2.2(b):

  	

   

  	

  Hazardous

  Materials/Environmental Conditions

  
	

  Section

  15.7(b):

  	

   

  	

  Rules

  and Regulations

  
	

  Section

  15.22:

  	

   

  	

  Brokerage

  
	

  Section

  15.23:

  	

   

  	

  Dispute

  Resolution

  
	

  Exhibit

  A-1:

  	

   

  	

  Tenant's

  Exclusive Parking Areas Adjacent

  
	

   

  	

   

  	

  Landscaping

  
	

  Exhibit

  C:

  	

   

  	

  Commencement

  Date Letter

  
	

  Exhibit

  H:

  	

   

  	

  Milestone

  Dates

  
	

  Exhibit

  I:

  	

   

  	

  Form

  of Subordination, Nondisturbance and

  
	

   

  	

   

  	

  Attornment

  Agreement

  
	

  Exhibit

  J:

  	

   

  	

  Common

  Facilities

  
	

  Exhibit L:

  	

   

  	

  Provisions Applicable to Construction of Tenant

  
	

   

  	

   

  	

  Improvements

  
	

  Exhibit

  L-1:

  	

   

  	

  Approval

  of Tenant Improvement Plans

  
	

  Exhibit

  O:

  	

   

  	

  List

  of Proposed Tenants with Expansion Rights

  
	

  Exhibit

  P:

  	

   

  	

  Measurement

  Method

  
	

  Exhibit

  S:

  	

   

  	

  Signage

  in Compliance with Sign Standards

  
	

  Exhibit

  M:

  	

   

  	

   

  
	

  Section A:

  	

   

  	

  (Extension

  Option)

  
	

  Section C:

  	

   

  	

  (Right

  of First Refusal)

  
	

  Section D:

  	

   

  	

  (SNDA)

  

 

 

The following defined terms in Section 1.3: Rent

Commencement Date, and Scheduled Term Commencement Date, and such other terms

as are used only in the Excluded Sections.

All of the First Amendment, excluding: New Exhibits E,

F, K, K-1a, K-1b, K-2b, K-2c, K-4a, K-4b, K-5, K-6 and L-3 (all of which shall

be applicable and shall, to the extent applicable, replace the Exhibit so

replaced by the same in the Master Lease)

(g)           Sublessor's right to abatement of

rent pursuant to Section 7.4(e) of the Master Lease shall not operate for the

benefit of Sublessee and may not be enforced by Sublessee, provided that

Sublessee shall be entitled to receive its pro rata share of any rent abatement

received by Sublessor pursuant to such Section 7.4(e) to the extent and only to

the extent that such rent abatement is due to a Service Interruption (as such

term is defined in the Master Lease) which affects the Subleased Premises; and

(h)           the term "Landlord" as used

in the Master Lease shall mean Sublessor hereunder and the term

"Tenant" as used in the Master Lease shall mean Sublessee hereunder.

In the event of any conflict between the provisions of

the Master Lease incorporated by reference herein and the specific provisions

of this Sublease, the specific provisions of this Sublease shall control,

provided that nothing herein contained shall be construed to derogate from the

obligations of Sublessor and Sublessee to comply with the provisions of the

Master Lease; and those incorporated provisions of the Master Lease which are protective

and for the benefit of Landlord shall in this Sublease be deemed to be

protective and for the benefit of both the Landlord and the Sublessor, and

those incorporated provisions of the Master Lease which are protective and for

the benefit of the Tenant shall in this Sublease be deemed protective and for

the benefit of the Sublessee.

In the event of any default on the part of Sublessee

under any of the terms, covenants, and conditions of this Sublease (including

those terms, covenants, and conditions of the Master Lease incorporated by

reference herein), Sublessor shall have the same rights and remedies against

Sublessee under this Sublease as are available to Master Lessor against

Sublessor, as lessee under the Master Lease.

Sublessee represents to Sublessor that it has read the

Master Lease and that it is familiar with the contents thereof.  Sublessee covenants and agrees that it will

perform, comply with, and observe all of the terms, covenants, and conditions

contained in the Master Lease and applicable to Tenant, insofar as they relate

to the use and occupancy of the Subleased Premises, except for the Excluded

Sections and those provisions made inapplicable by the express provisions of

this Sublease.

3.             Term. 

The initial term of this Lease shall be six (6) months, commencing on

the Term Commencement Date and expiring at 5:00 p.m. on January 31, 2002 (the

"Term"), unless extended in accordance with the provisions of

this Section 3 or earlier terminated as a result of the termination of the

Master Lease, or the termination of this Sublease.  For purposes of this Sublease, the term "Term"

shall be deemed to mean and include, as and to the extent applicable, the

initial Term of this Sublease, as the same may be extended for the First

Extension, the Second Extension, the Third Extension (as those terms are

defined below in this Section 3), and for the Option Term (as that term is

defined in Section 18 of this Sublease), as the case may be.

Provided that there has been no default by Sublessee

under this Sublease during the initial Term which has not been cured within any

applicable grace period or waived by Sublessor, and provided that this Sublease

is in full force and effect, the initial Term of this Sublease shall

automatically be extended for one (1) period of six (6) calendar months (the

"First Extension").  If

the initial Term is so automatically extended, the First Extension shall

commence upon the expiration of the initial Term, and shall expire at 5:00 p.m.

on July 31, 2002, and shall be on the same terms and conditions as are set

forth in this Sublease, except that the only then-remaining rights of extension

shall be for the Second Extension, the Third Extension, and the Option Term,

all subject to and in accordance with the provisions of this Sublease.

Provided that there has been no default by Sublessee

under this Sublease during the First Extension which has not been cured within

any applicable grace period or waived by Sublessor, and provided that this

Sublease is in full force and effect, the initial Term of this Sublease, as so

extended for the First Extension, shall automatically be extended for one (1)

additional period of six (6) calendar months (the "Second Extension").

If the initial Term, as so extended, is so automatically extended for the

Second Extension, the Second Extension shall commence upon the expiration of

the First Extension, and shall expire at 5:00 p.m. on January 31, 2003, and

shall be on the same terms and conditions as are set forth in this Sublease,

except that the only then-remaining rights of extension shall be for the Third

Extension and the Option Term, all subject to and in accordance with the

provisions of this Sublease.

Provided that there has been no default by Sublessee

under this Sublease during the Second Extension which has not been cured within

any applicable grace period or waived by Sublessor, and provided that this

Sublease is in full force and effect, the initial Term of this Sublease, as so

extended for the First Extension and the Second Extension, shall automatically

be extended for one (1) additional period of seven (7) years and eleven (11)

months (the "Third Extension").  If the initial Term, as so extended, is so automatically extended

for the Third Extension, the Third Extension shall commence upon the expiration

of the Second Extension, and shall expire at 5:00 p.m. on December 31, 2010,

and shall be on the same terms and conditions as are set forth in this

Sublease, except that the only then-remaining right of extension shall be for

the Option Term, subject to and in accordance with the provisions of this

Sublease.

Notwithstanding anything contained in this Sublease to

the contrary, this Sublease shall terminate automatically upon any termination

of the Master Lease; provided, however, that Sublessee agrees that, in the

event of any termination of the Master Lease or in the event Master Lessor

succeeds to the interest of Sublessor in the Master Lease or this Sublease,

Sublessee shall, at Master Lessor’s request, attorn to Master Lessor on the

terms of this Sublease and, in such event, this Sublease shall remain in full

force and effect between Sublessee and Master Lessor as if the Master Lease had

not terminated, and Sublessee shall execute such instruments of attornment as

Master Lessor shall reasonably request.

4.             Rent.  During the

period from the Rent Commencement Date to and including December 31, 2005

(provided this Sublease remains in full force and effect), Sublessee shall pay

to Sublessor base rent ("Base Rent") for the Subleased

Premises in the amount of Nine Hundred Fourteen Thousand ($914,000) Dollars per

year, in equal monthly installments of $76,166.67 per month, payable in advance

on the first day of each calendar month. 

During the period from August 1, 2005 to and including July 31, 2010 (provided

this Sublease remains in full force and effect), Sublessee shall pay to

Sublessor Base Rent for the Subleased Premises in the amount of Nine Hundred

Eighty-Seven Thousand One Hundred Twenty ($987,120) Dollars per year, in equal

monthly installments of $82,260.00 per month, payable in advance on the first

day of each calendar month.

Sublessee shall also pay to Sublessor, in addition to

Base Rent, Incremental Additional Rent in the amount of Eight Hundred Forty-Six

Thousand Five Hundred Seventy and 75/100 ($846,570.75) Dollars, which

Incremental Additional Rent shall be payable in twelve (12) equal monthly

installments of Seventy Thousand Five Hundred Forty-Seven and 56/100

($70,547.56) Dollars each, with the first such payment being due and payable on

the earlier to occur of (i) an Approved Change in Control (as that term is

defined in Section 7 hereof), or (ii) January 1, 2002, and each subsequent

payment being due and payable in advance on the first day of each calendar

month thereafter until paid in full.

The Base Rent payable hereunder shall be increased by

the amount of Base Building Operating Expenses, Operating Expenses of the

Complex and Taxes (as such terms are defined in the Master Lease) allocable to

the Subleased Premises, provided that for purposes of this Sublease, Base

Building Operating Expenses shall be deemed to include all expenses incurred by

Sublessor (exclusive of its payments of Operating Expenses of the Complex and

Taxes to the extent included therein) in operating and maintaining the Building

and its appurtenances, including but without limitation, premiums for fire,

casualty, liability and such other insurance as Sublessor may from time to time

maintain with respect to the Building; insurance deductibles; security

expenses; compensation and all fringe benefits, workmen’s compensation

insurance premiums and payroll taxes paid by Sublessor to, for or with respect

to all persons engaged in operating, maintaining, or cleaning of the Building

or related common areas; steam, water, sewer, electric, gas, telephone and

other utility charges not billed directly to subtenants by Sublessor or the

utility; costs of building and cleaning supplies and equipment (including

rental); costs of maintenance, cleaning and repairs; costs of snow plowing or

removal, or both, and care of landscaping; payments to independent contractors

under service contracts for cleaning, operating, managing, maintaining and

repairing the Building and said common areas; all other expenses paid in

connection with the operation, cleaning, maintenance and repair of the Building

and said common areas, or either; the amortized portion, properly attributable

to the fiscal year in question, of the cost, with interest thereon at a rate

reasonably determined by Sublessor, of any capital improvements made to the

Building by Sublessor after the original construction of the Building which are

anticipated to result in a reduction in Base Building Operating Expenses or are

required under any governmental law or regulation not applicable to the

Building at the time of its construction; and the management fee determined in

accordance with paragraph 4 of Exhibit D to the Master Lease.  In the event the Building shall be less than

fully occupied, Sublessor shall have the right equitably to adjust the Base

Building Operating Expenses to correspond to the actual occupancy of the

Building in respect of those expenses which are variable (e.g., cleaning) on

account of the extent of the occupancy of the Building.

Sublessee and Sublessor agree that the proportionate

share of Base Building Operating Expenses allocable to the Subleased Premises

is 9.9863%, and the proportionate share of Operating Expenses of the Complex

and Taxes allocable to the Subleased Premises is 5.1714%, provided that such

percentages may change to reflect any changes in the total rentable square

footage of the Subleased Premises, Building or the Complex (as defined in the

Master Lease) and provided further that if any utilities or services are

provided to less than all of the rentable space in the Building, Sublessee

shall pay its share of said charges based upon the area of the Subleased

Premises relative to the area of the entire space to which utilities are

provided.  Sublessor shall notify

Sublessee in writing from time to time as to the amounts and payment dates of

such expenses and taxes, and Sublessee shall pay such amounts to Sublessor in

addition to the Base Rent within ten (10) business days of receipt of

Sublessor’s invoice therefor.  Sublessee

shall be responsible for paying all charges for electricity related to the

Subleased Premises.  Electricity for

lights and plugs shall be separately metered at Sublessor’s sole cost and

expense.  Sublessor shall not be liable

for any interruption or failure in the supply of any utilities to the Subleased

Premises; provided, however, that, to the extent Sublessor is entitled to a

rent abatement under the Master Lease pursuant to Section 7.4(e) thereof,

Sublessee shall be entitled to an equitable abatement of the rent hereunder

taking into account the rentable area of the Subleased Premises and the

remainder of the Building and the degree of interruption of such services to

the Subleased Premises compared to the degree of interruption suffered by the

remainder of the Building.

Sublessee shall pay, as additional rent, on the first

day of each month during the Term monthly payments equal to 1/12th of the

amount of additional rent Sublessor estimates to be payable pursuant to this

Section 4 during each fiscal year. 

Estimated monthly payments for each ensuing fiscal year shall be made

retroactively to the first day of the fiscal year in question, with an

appropriate additional payment or refund, if any, to be made at the end of such

fiscal year.  Without limitation of the

foregoing, if Sublessor should reasonably determine during the course of any

fiscal year that additional payments on account of Base Building Operating

Expenses will be required to be made by Sublessee, Sublessor may require

Sublessee to make estimated monthly payments on account thereof and such

payments shall be due as additional rent with a final adjustment to be made at

the end of such fiscal year.

Within ninety (90) days after the expiration of each

fiscal year (or if this Sublease shall expire or be terminated during a fiscal

year, after the expiration or termination of this Sublease), Sublessor shall

furnish Sublessee with a statement setting forth the Base Building Operating

Expenses for such fiscal year (or applicable portion thereof).  Such statement shall be accompanied by a

computation of the amount, if any, of the additional rent payable to Sublessor

pursuant to this Section 4 or the amount, if any, overpaid by Sublessee.  Any additional rent payable by Sublessee

under this Section 4 shall be paid within ten (10) business days after

Sublessor has furnished Sublessee with the foregoing statement.  In the event such statement indicates an

overpayment by Sublessee, such overpayment shall be credited against

Sublessee’s future obligations under this Section 4, or, if the Term has

expired, the same shall be refunded to Sublessee within ten (10) days of

delivery of such statement.

Except as otherwise specifically provided herein, any

sum, amount, item or charge payable by Sublessee hereunder shall constitute

additional rent and shall be paid by Sublessee to Sublessor in advance on the

first (1st) day of the month following the date on which Sublessor notifies

Sublessee of the amount payable or on the tenth (10th) day after the giving of

such notice, whichever shall be later.

5.             Security Deposit. 

Sublessee shall pay to Sublessor the sum of Six Hundred Eighty-Five

Thousand Five Hundred and 03/100 ($685,500.03) Dollars (the "Security

Deposit") in accordance with the provisions of this Section 5, to be

held by Sublessor as security for the payment of all Base Rent, Incremental

Additional Rent, additional rent and other sums of money payable under the

terms of this Sublease, and for the faithful performance by Sublessee of each

of its other obligations hereunder. 

Subject to the acceleration of such payments pursuant to the provisions

of Section 19 of this Sublease, the Security Deposit shall be paid to Sublessor

in monthly installments of Thirty Thousand ($30,000) Dollars each, with the

first such installment being due and payable upon the execution and delivery of

this Sublease, and each subsequent installment being due and payable on the

first day of each calendar month thereafter (provided that this Sublease

remains in full force and effect), until the Security Deposit has been paid to

Sublessor in full.  Notwithstanding the

foregoing, but subject to the acceleration of such payments pursuant to the

provisions of Section 19 of this Sublease, from and after the occurrence of an

Approved Change in Control (as that term is defined in Section 7 of this

Sublease), the amount of each such monthly installment shall automatically be

increased to Fifty Thousand ($50,000) Dollars (provided that this Sublease

remains in full force and effect) until the Security Deposit has been paid to Sublessor

in full.  In the event of a default by

Sublessee under this Sublease which is not cured within the applicable grace

period, Sublessor, at Sublessor’s election and with or without terminating this

Sublease and without prejudice to any other right or remedy Sublessor may have

under this Sublease, at law and in equity on account of such default, may

immediately apply all or any portion of the Security Deposit necessary to cure

or remedy such default and to reimburse Sublessor for any and all costs, fees

(including, without limitation, reasonable attorneys' fees) and expenses

incurred by Sublessor in connection with such default, the cure thereof and the

enforcement of such rights and remedies. 

Sublessee shall immediately replenish any portion of the Security

Deposit so applied so that at all times Sublessor is holding the full amount of

the Security Deposit due as of such date in accordance with the payment

procedure described in this Section 5, and further subject to the acceleration

of such payments pursuant to the provisions of Section 19 hereof.   The Security Deposit is not an advance

payment of rent or a measure or limit of Sublessor's damages upon a default by

Sublessee under this Sublease.  The

Security Deposit may be commingled with other funds, and no interest shall be

paid thereon.  If Sublessor transfers

its interest in the Subleased Premises and the transferee assumes Sublessor's

obligations under this Sublease, then Sublessor may assign the Security Deposit

to the transferee and Sublessor thereafter shall have no further liability for

the return of the Security Deposit. 

Upon the expiration of the Term of this Sublease, any unapplied portion

of the Security Deposit shall be promptly returned to Sublessee.

6.             Condition of Subleased Premises.  Reference is made to the covenants,

representations and warranties made by Master Lessor in Sections 4.2(e), 4.3

and 14.2.2(b) in the Master Lease with respect to the Building and the Complex.  In the event of any breach of any such

covenant, representation or warranty, Sublessee hereby agrees to look solely to

Master Lessor for recovery of any loss, cost or damage suffered by Sublessee as

a result thereof.  Sublessee expressly

agrees that Sublessor shall not be liable for breach of any such covenant, representation

or warranty.  To the extent legally

enforceable, Sublessor agrees that Sublessee shall have the right to pursue any

remedy that the Sublessor would have against Master Lessor with respect to any

loss, cost or damage suffered by Sublessee arising out of a breach of such a

covenant, representation or warranty by Master Lessor.  Sublessee shall have the right to take such

action in its own name (or in the name of Sublessor if such action would be

barred in Sublessee’s name due to lack of privity) and at its own expense, and

for that purpose and only to such extent, all of the rights of Sublessor under

the Master Lease with respect thereto shall be and hereby are conferred upon

and assigned to Sublessee and Sublessee shall be and is hereby subrogated to

such rights to the extent that the same shall apply to the Subleased Premises,

provided and only to the extent that such action against Master Lessor in the

Sublessee’s name shall be barred by reason of lack of privity of contract.  If Sublessor shall take, or participate in,

or shall be requested to participate or assist in any action in the enforcement

of Sublessee’s rights against Master Lessor, Sublessor shall cooperate with

Sublessee as reasonably requested by Sublessee and Sublessee agrees to reimburse

Sublessor for all expenses reasonably incurred by Sublessor, including, without

limitation, the attorney’s fees of Sublessor. 

Provided that Sublessor has performed its obligations under this

grammatical paragraph, Sublessee hereby agrees to indemnify and hold harmless

and defend Sublessor from and against any and all damages, claims and

liabilities to others resulting or allegedly resulting from any action or

proceeding taken or instituted by Sublessee (or by Sublessor at Sublessee’s

request) pursuant to this grammatical paragraph whether or not Sublessor joins

in the same.

Sublessee hereby accepts the Subleased Premises in

their “AS-IS” condition as

of the date of this Sublease, without warranty or representation of any kind or

nature (express or implied, by operation of law or otherwise), and Sublessor

shall have no obligation to perform any work therein (including, without

limitation, demolition or any improvements existing therein or construction of

any tenant finish work or other improvements therein) and shall not be

obligated to reimburse Sublessee or provide any allowance for any costs related

to the demolition or construction of improvements therein.

Sublessee shall not make or cause to be made any

modifications, alterations, improvements, changes, or additions to the

Subleased Premises without the prior written consent of Sublessor and, to the

extent required by the Master Lease, Master Lessor.  Any such modifications, alterations, improvements, changes, or

additions shall, to the extent approved, be made at Sublessee’s expense, in a

good and workmanlike manner, in accordance with all applicable laws and codes,

pursuant to plans and specifications approved in writing by Sublessor and, to

the extent required by the Master Lease, Master Lessor.  At Sublessor's election, Sublessee shall,

all at Sublessee's expense, at the expiration or earlier termination of the

Term of this Sublease, remove all or such portion of such modifications,

alterations, improvements, changes, or additions as Sublessor may require, and

restore the Subleased Premises to their condition prior to the making of such

modifications, alterations, improvements, changes, or additions.  Sublessor may withhold or condition its

consent to any such proposed modifications, alterations, improvements, changes,

or additions in Sublessor's sole and absolute discretion; provided, however,

that the consent of Sublessor shall not be unreasonably withheld in those

circumstances where, pursuant to the Master Lease, the consent of Master Lessor

shall not be unreasonably withheld.

7.             Subletting and Assignment.  Sublessee shall not voluntarily, involuntarily, or by operation

of law, assign, transfer, mortgage, pledge, or encumber this Sublease or any

interest herein, or sublease or allow any third party to use or occupy all or

any portion of the Subleased Premises (each of the foregoing hereinafter

referred to as a “Transfer”), without the prior written consent of

Sublessor, which consent may be withheld or conditioned in Sublessor's sole and

absolute discretion, except as otherwise provided herein. Any dissolution,

merger, consolidation, or other reorganization of Sublessee, or the sale or

other transfer or disposition (in a single transaction or a series of

transactions) of a controlling percentage of the stock of, or other effective

change in control of Sublessee, or any sale of all or substantially all of the

assets of Sublessee (each, a “Change of Control”), shall also be deemed

to constitute a “Transfer” for purposes of this Sublease, and shall not be

effectuated without the prior written consent of Sublessor, which consent may

be withheld or conditioned in Sublessor's sole and absolute discretion, except

as otherwise provided herein.

Any Transfer

without Sublessor's prior written consent shall be null and void ab initio

and constitute an immediate default under this Sublease, with respect to which,

and notwithstanding anything contained in this Sublease to the contrary, there

shall be no notice or cure period.

Notwithstanding

the foregoing, Sublessor's consent to a proposed Transfer in the nature of a

Change of Control (or in the nature of an assignment of Sublessee's interest in

this Sublease in connection with a Change of Control), shall not be

unreasonably withheld, provided that: (i) the reputation, net worth,

creditworthiness, financial condition and management of the surviving

corporation or entity is satisfactory to Sublessor in Sublessor's reasonable

discretion, and (ii) the surviving corporation or entity agrees in writing with

Sublessor, in a form satisfactory to Sublessor, to assume all of Sublessee's

obligations under this Sublease and to be bound by all of the terms and

conditions of this Sublease.

If Sublessee requests Sublessor's consent to a

Transfer, then Sublessee shall so notify Sublessor in writing and provide

Sublessor with a written description of all terms and conditions of the

proposed Transfer (including, without limitation, the proposed consummation

date thereof), copies of the proposed documentation, and any and all financial

and other information with respect to Sublessee and the proposed transferee or

surviving corporation or entity, as the case may be, that Sublessor may request

from time to time, in Sublessor’s reasonable discretion, in order for Sublessor

to evaluate the proposed Transfer and determine whether Sublessor will consent

thereto.

A consent to a Transfer shall not release Sublessee of

any of its obligations hereunder (but rather Sublessee and its transferee shall

be jointly and severally liable therefor), or be deemed to be a consent to any

subsequent Transfer.  If a default

occurs while the Subleased Premises or any part thereof are subject to a

Transfer, then Sublessor, in addition to its other remedies, may collect directly

from such transferee all rents becoming due to Sublessee and apply such rents

against Base Rent and any other amounts due under this Sublease.  Sublessee authorizes its transferees to make

payments of rent directly to Sublessor upon receipt of notice from Sublessor to

do so.  This Section 7 does not, and

shall not be construed to, create any rights in favor of any third

parties.  Sublessee shall be responsible

for all costs, fees (including, without limitation, attorneys' fees) and

expenses incurred by Sublessor in connection with any proposed Transfer

(whether or not Sublessor consents thereto and whether or not the Transfer is

consummated), excluding any costs and expenses required to demise that portion

of the Subleased Premises which is subject to the Transfer (the “Transfer

Portion”) from the remainder of the Subleased Premises.

Within ten (10) business days after its receipt of all

of the foregoing information, Sublessor shall provide written notice to

Sublessee as to whether Sublessor (x) consents to the proposed Transfer, (y)

does not consent to the proposed Transfer, or (z) desires to recapture the

Transfer Portion; provided, however, that in the event Sublessee requests

Sublessor’s consent to a Transfer in the nature of a Change of Control during

the initial Term, the First Extension or the Second Extension, within ten (10)

business days after its receipt of all of the foregoing information, Sublessor

shall provide written notice to Sublessee as to whether Sublessor (x) consents

to the proposed Transfer, or (y) desires to recapture the Transfer

Portion.  In the event that Sublessor

consents to the proposed Transfer, Sublessee may consummate such Transfer on

the terms set forth in its notice to Sublessor, provided that if Sublessee

fails to consummate such Transfer within ninety (90) days after the date of

Sublessor’s notice, Sublessee shall be required to again request Sublessor’s

consent to such proposed Transfer and Sublessor shall be entitled to exercise

the recapture right described in this paragraph.  For purposes of this Sublease, Sublessor's consent in writing to

a proposed Transfer in the nature of a Change of Control shall be deemed an

"Approved Change in Control".

If Sublessor elects to recapture the Transfer Portion,

Sublessee shall have the right to rescind its request regarding the proposed

Transfer by written notice to Sublessor within five (5) business days of

Sublessor’s notice of Sublessor's election to recapture the Transfer

Portion.  In the event that Sublessor

desires to recapture the Transfer Portion, unless Sublessee has rescinded its

request pursuant to the preceding sentence, Sublessee and Sublessor shall

mutually agree on the date for such recapture (which date shall in no event be

earlier than the consummation date proposed in Sublessee’s notice to Sublessor)

and Sublessee and Sublessor shall execute an amendment to this Sublease

removing the Transfer Portion from the Subleased Premises and making

appropriate corresponding changes in this Sublease. In the absence of an

agreement between Sublessor and Sublessee on the date of any recapture, the

recapture date shall be the later of (i) sixty (60) days (or, in connection

with a Change of Control during the initial Term, the First Extension or the

Second Extension, one hundred twenty (120) days) after the date of Sublessor’s

notice that it intends to recapture the Transfer Portion and (ii) the

consummation date proposed in Sublessee’s notice to Sublessor.  Following any such recapture, Sublessor may

lease the Transfer Portion (or any other premises in the Building) to the

proposed transferee (or any other person or entity) without liability to

Sublessee.

If Sublessee Transfers any portion of the Subleased

Premises, Sublessee shall pay to Sublessor, as additional rent, fifty percent

(50%) of the amount, if any, by which the amounts received by Sublessee in

respect of each such Transferred Portion, net of reasonable out-of-pocket costs

incurred by Sublessee in connection with such Transfer, exceed the Base Rent

and additional rent payable with respect to each such Transferred portion.

8.             Insurance. 

Sublessee shall maintain insurance in accordance with the Master Lease

and in compliance with all of Sublessor’s obligations under the Master

Lease.  Such policies of insurance shall

name Sublessor and Master Lessor (and all other persons required by the Master

Lease or Master Lessor) as an additional insured, shall contain a cross

liability endorsement, and shall provide that the same may not be cancelled

except upon 30 days prior written notice to Sublessor and Master Lessor and such

other persons.  Sublessee shall provide

Sublessor and Master Lessor and such other persons with a certificate or

certificates of said policies or, to the extent required by the Master Lease,

copies (or originals if required) of said policies.  Sublessee agrees that such insurance shall not be deemed to limit

its liability under this Sublease. 

Sublessee further agrees to pay to Sublessor, as additional rent,

Sublessee’s proportionate share (based on the square footage of the Building

allocable to the Subleased Premises) of the cost of insurance related to the

Building and taken out by Sublessor.

9.             Casualty and Eminent Domain.  To the extent that Sublessor’s base rent and additional rent

abates pursuant to the Master Lease in the event of a fire or other casualty or

upon any exercise of the power of eminent domain, Sublessee’s Base Rent and

additional rent payable hereunder shall abate on a pro rata basis to the extent

that the Subleased Premises are damaged by such fire or other casualty or are

subject to such exercise of the power of eminent domain, as the case may

be.  To the extent that the Master Lease

terminates as the result of any fire or other casualty or any exercise of the

power of eminent domain, this Sublease shall likewise terminate.  Sublessee acknowledges and agrees that

Master Lessor has reserved and excepted, and Sublessee hereby grants to

Sublessor, for and on behalf of Master Lessor, all rights to recover for

damages to the Complex and the sub-leasehold interest hereby created, and to compensation

accrued or hereafter to accrue by reason of any taking, damage or

destruction.  By way of confirming the

foregoing, Sublessee hereby grants and assigns, and covenants with Sublessor to

grant and assign to Sublessor, for and on behalf of Master Lessor, all rights

to such damages or compensation, and covenants to deliver such further

assignments and assurances thereof as Sublessor, for and on behalf of Master

Lessor, may from time to time request, and Sublessee hereby irrevocably

appoints Sublessor its attorney-in-fact to execute and deliver in Sublessee’s

name all such assignments and assurances. 

Nothing contained herein shall be construed to prevent Sublessee from

prosecuting in any condemnation proceedings a claim for (or obtaining from an

insurance award) the value of any of Sublessee’s removable property installed

in the Subleased Premises by Sublessee at Sublessee’s expense and for

relocation expenses, provided that such action shall not affect the amount of

compensation otherwise recoverable by Master Lessor from the taking authority.

10.           Indemnification.  To the fullest extent permitted by law,

Sublessee hereby agrees to indemnify and hold harmless and defend Sublessor

from and against any and all actions, claims, demands, damages, losses, liabilities,

costs, and expenses (including reasonable attorneys’ fees) asserted against,

imposed upon, or incurred by Sublessor by reason of (a) any violation of any of

the terms, covenants, or conditions of the Master Lease or this Sublease

caused, suffered, or permitted by Sublessee, its agents, servants, employees,

or invitees, and (b) any damage or injury to persons or property occurring upon

or in connection with the use or occupancy of the Subleased Premises, except to

the extent caused by the gross negligence or willful misconduct of Sublessor,

its agents, servants, employees, or invitees. 

Sublessee acknowledges that the foregoing indemnity includes any losses,

costs or damages suffered by Sublessor with respect to the Master Lease to the

extent that such losses, costs or damages are caused by Sublessee.

To the fullest extent permitted by law, Sublessor

hereby agrees to indemnify and hold harmless and defend Sublessee from and

against any and all actions, claims, demands, damages, losses, liabilities,

costs, and expenses (including reasonable attorneys’ fees) asserted against,

imposed upon, or incurred by Sublessee by reason of any violation of any of the

terms, covenants, or conditions of the Master Lease or this Sublease caused,

suffered, or permitted by Sublessor, its agents, servants, employees, or

invitees.  Sublessor acknowledges that

the foregoing indemnity includes any losses, costs or damages suffered by

Sublessee with respect to the Master Lease to the extent that such losses,

costs or damages are caused by Sublessor.

11.           Performance

under Master Lease.  As

between the parties hereto, Sublessor agrees to observe and perform the terms,

covenants and conditions on its part to be observed and performed hereunder and

under the Master Lease and to use commercially reasonable best efforts to cause

Master Lessor to observe and perform those applicable terms, covenants and

conditions to be observed and performed by Master Lessor under the Master Lease

with respect to the Subleased Premises. 

Sublessee covenants and agrees that Sublessee will not do anything which

would constitute a default under the Master Lease or omit to do anything which

Sublessee is obligated to do under the terms of this Sublease and which would

constitute a default under the Master Lease. 

Sublessee covenants and agrees to comply with all provisions of the

Master Lease applicable to the Subleased Premises.  To the extent that Sublessee has paid Sublessor, Sublessor

covenants and agrees to pay the rent and any additional rent payable as

required under the Master Lease and, to the extent that the same is not an

obligation of Sublessee, will not do anything or omit to do anything which

Sublessor is obligated to do under the terms of the Master Lease and which

would constitute a default under the Master Lease.

Sublessor shall not be liable to Sublessee for Master

Lessor’s negligence or misconduct or breach of the Master Lease, whether or not

such negligence, misconduct or breach otherwise causes a default by Sublessor

hereunder.  If, after written request

from Sublessee, Sublessor shall unreasonably fail or refuse to take appropriate

action for the enforcement of Sublessor’s rights against Master Lessor with

respect to the Subleased Premises, Sublessee shall have the right to take such action

in its own name and at its own expense, and for that purpose, and only to such

extent, all of the rights of Sublessor under the Master Lease shall be and

hereby are conferred upon and assigned to Sublessee and Sublessee shall be and

is hereby subrogated to such rights to the extent that the same shall apply to

the Subleased Premises, provided and only to the extent that such action

against Master Lessor in Sublessee’s name shallbe barred by reason of lack

of privity of contract.  If Sublessor

shall take, or participate in, or shall be requested to participate or assist

in any action in the enforcement of Sublessee’s rights against Master Lessor,

Sublessee agrees to reimburse Sublessor for all expenses reasonably incurred by

Sublessor, including without limitation, the attorney’s fees of Sublessor.  Sublessee hereby agrees to indemnify and

hold harmless and defend Sublessor from and against any and all damages,

claims, and liabilities to others resulting or allegedly resulting from any

action or proceeding taken or instituted by Sublessee (or by Sublessor at

Sublessee’s request) pursuant to this section whether or not Sublessor joins in

the same.

12.           No

Brokers.  Each of

Sublessee and Sublessor hereby represents and warrants to the other that it has

not dealt with any broker or agent in connection with this Sublease.  Each of Sublessee and Sublessor agrees to

indemnify and hold harmless the other against any claim by any broker or agent

arising out of a breach of their respective representations and warranties in

this Section 12.

13.           No

Waiver.  This Sublease,

together with those provisions of the Master Lease applicable hereto, contains

all of the covenants, agreements, terms, provisions, conditions, warranties and

understandings relating to the leasing of the Subleased Premises and

Sublessor’s obligations in connection therewith, and neither Sublessor nor any

agent or representative of Sublessor has made or is making, and Sublessee in

executing and delivering this Sublease is not relying upon, any warranties,

representations, promises or statements whatsoever, except to the extent

expressly set forth in this Sublease. 

The failure of Sublessee or Sublessor to insist in any instance upon the

strict keeping, observance or performance of any covenant, agreement, term,

provision or condition of this Sublease or to exercise any election herein

contained shall not be construed as a waiver or relinquishment for the future

of such covenant, agreement, term, provision, condition or election, but the

same shall continue and remain in full force and effect.  No waiver or modification of any covenant,

agreement, term, provision or condition of this Sublease shall be deemed to

have been made unless expressed in writing and signed by Sublessee and

Sublessor, provided that Sublessor may amend the Master Lease as long as any

such amendment does not have a material adverse effect on Sublessee’s rights

and obligations hereunder and provided that Sublessor delivers copies of such

amendments to Sublessee reasonably promptly after execution thereof.  No surrender of possession of the Subleased

Premises or of any part thereof or of any remainder of the term of this

Sublease shall release Sublessee from any of its obligations hereunder unless

accepted by Sublessor in writing.  The receipt

and retention by Sublessor of monthly Base Rent, Incremental Additional Rent or

additional rent from anyone other than Sublessee shall not be deemed a waiver

of the breach by Sublessee of any covenant, agreement, term or provision of

this Sublease, or as the acceptance of such other person as a tenant, or as a

release of Sublessee from the further keeping, observance or performance by

Sublessee of the covenants, agreements, terms, provisions and conditions herein

contained.  The receipt and retention by

Sublessor of monthly Base Rent, Incremental Additional Rent, or additional rent

with knowledge of the breach of any covenant, agreement, term, provision or

condition herein contained shall not be deemed a waiver of such breach.

14.           Successors

and Assigns.  The

obligations of this Sublease shall bind and benefit the successors and

permitted assigns of the parties with the same effect as if mentioned in each

instance where a party hereto is named or referred to.

15.           Notices.  All notices to Sublessor shall be sent to

Arthur D. Little, Inc., 20 Acorn Park, Cambridge, MA 02140, Attn: Jose Bairos,

with a copy delivered simultaneously to Choate, Hall & Stewart, 53 State

Street, Boston, MA 02109  Attention:  Michael S. Sophocles, P.C.; all notices to

Sublessee shall be sent to Primix Solutions Inc., One Arsenal Marketplace,

Watertown, Massachusetts 02472, Attn: Chief Financial Officer, or to such other

address and attention as either party shall notify the other in writing in

accordance with the provisions of this Section.

16.           Parking

and Signage.  Sublessee

shall have the non-exclusive right to use 104 parking spaces in the parking

area serving the Subleased Premises at no extra charge.  Signage for Sublessee, at Sublessee’s sole

cost and expense, shall be located in the first floor lobby directory, the

third floor directory, and on Sublessee’s entrance doors.  All such signage shall be building standard

or shall be approved in advance by Sublessor and Master Lessor.  In the event that Sublessor causes a so-called

monument sign to be constructed for use by (a) two or more occupants by the

Building or (b) one occupant renting less rentable area than the rentable area

of the Subleased Premises, Sublessor shall make available to Sublessee at

Sublessee’s sole cost and expense, the right to use an area on such monument

sign containing approximately 9.9863% of the total useable area of such sign;

provided, in any event, that such use shall be in a manner approved in advance

by Sublessor and Master Lessor.

17.           Subordination,

Non-Disturbance and Attornment Agreements.  Sublessor shall use commercially reasonable

good faith efforts to obtain from the Master Lessor and any of its lenders

subordination, non-disturbance and attornment agreements for the benefit of

Sublessee.  Sublessee acknowledges that

Master Lessor and such lenders are under no obligation to provide such

agreements to Sublessee, and that any failure of Sublessor to procure such

agreements on behalf of Sublessee shall not constitute a default by Sublessor

of this Sublease.

18.           Option

to Extend.  Provided

that, at the time of exercise, (i) this Sublease is still in full force and

effect, (ii) no default of Sublessee shall have occurred and be continuing

beyond any applicable notice and cure periods, and (iii) the named Sublessee

shall not have Transferred any portion of the Subleased Premises, Sublessee

shall have the right and option to extend the term of this Sublease for one

extended term of approximately ten (10) years (the “Option Term”).  The Option Term shall commence upon the

expiration of the Third Extension and shall end at 5:00 p.m. on December 30,

2020.  Sublessee shall exercise such

option to extend by giving written notice to Sublessor of its desire to do so not

later than twelve (12) months prior to the expiration date of the Third

Extension. The giving of such notice of extension by Sublessee shall,

automatically extend the Term of this Sublease for the Option Term, and no

instrument of renewal or extension need be executed.  In the event that Sublessee fails to give such notice to

Sublessor, this Sublease shall automatically terminate at upon the expiration

of the Third Extension and Sublessee shall have no further option to extend the

Term of this Sublease.  The Option Term

shall be on the same terms and conditions of this Sublease except the Base Rent

for the Option Term shall be the greater of (a) the Base Rent due for the last

year of the Third Extension and (b) the Fair Market Rental Value.

For purposes of this Section 18, the term “Fair Market

Rental Value” shall mean the market rental value per year for the Subleased

Premises for the Option Term as of the commencement of the Option Term, as

agreed by Sublessor and Sublessee, on a triple net basis, and otherwise on the

terms and conditions set forth in this Sublease.  If the parties are unable to reach agreement thereon within

thirty (30) days after the giving of such notice of extension, then the Fair

Market Rental Value shall be determined in accordance with the procedures set

forth in the second paragraph of Section B of Exhibit M to the Master Lease.

19.           Option

to Expand.  Provided (i)

Sublessee is not in default of any of the provisions of this Sublease, (ii)

there has occurred an Approved Change in Control (as that term is defined in

Section 7 of this Sublease), and (iii) Sublessee is occupying the entire

Subleased Premises at the time of such election, Sublessee may, subject to the

terms and conditions set forth herein, sublease that portion of the third floor

of the Building containing approximately 36,137 net rentable square feet and

being more particularly shown on Exhibit C

attached hereto and incorporated herein by reference (the "Expansion Space"), by delivering

to Sublessor, written notice of Sublessee’s election to include the Expansion

Space in the Subleased Premises (the "Expansion

Notice").

Notwithstanding

anything contained herein to the contrary, Sublessor shall have the right from

time to time after the date of this Sublease to enter into subleases, and to

grant rights and options, with respect to all or any portion of the Expansion

Space with such parties and on such terms as Sublessor may elect, in

Sublessor's sole and absolute discretion, from time to time.  Sublessee's right to sublease the Expansion

Space pursuant to the provisions of this Section 19 are and at all times shall

be subject and subordinate to any and subleases that Sublessor may enter into

from and after the date of this Sublease with respect to all or any portion of

the Expansion Space, and to any and all rights and options that Sublessor may

at any time and from time to time grant to existing or prospective subtenants

or other third parties with respect thereto. 

Sublessee further acknowledges and agrees that, to the extent Sublessor

is at any time now or hereafter engaged in discussions with any existing or

prospective subtenants or other third parties with respect to all or any

portion of the Expansion Space, Sublessee's rights and option hereunder to

sublease the Expansion Space shall be subject to and subordinate to any

subleases, agreements, rights and/or options granted or entered into as a

result of those discussions. 

Sublessee’s rights under this Section 19 shall terminate if Sublessee

sublets any portion of the Subleased Premises.

 

If Sublessee,

having the right to do so, properly delivers the Expansion Notice and exercises

its option under this Section 19, then, subject to the provisions of this

Section 19, Sublessee and Sublessor shall execute an amendment to this Sublease

including the Expansion Space in the Subleased Premises on the same terms as

this Sublease, except as follows:

 

(a)           the

net rentable square feet of the Subleased Premises shall be increased by the

net rentable square feet in the Expansion Space;

(b)           the

per rentable square foot Base Rent for the Expansion Space shall be equal to

the greater of (1) the product of (i) the rentable square feet in the

Expansion Space, multiplied by (ii) the per annum Base Rent per rentable

square foot then in effect under this Sublease for the original Subleased

Premises, and (2) the Expansion Space Fair Market Rental Value.  For purposes of this Section 19, the

Expansion Space Fair Market Rental Value shall mean the market rental value per

year for the Expansion Space as of the date of such amendment, as agreed by

Sublessor and Sublessee, on a triple net basis, and otherwise on the terms and

conditions set forth in this Sublease. 

If the parties are unable to reach agreement thereon within thirty (30)

days after the Sublessor's receipt of the Expansion Notice, then the Expansion

Space Fair Market Rental Value shall be determined in accordance with the

procedures set forth in the second paragraph of Section B of Exhibit M to the

Master Lease;

(c)           simultaneously

with the execution and delivery of such amendment, any unpaid monthly

installments on account of the then-existing Security Deposit shall be

accelerated and paid to Sublessor in a single lump sum payment, and the

Security Deposit shall also be increased by an amount equal to nine (9) months

of Base Rent allocable to the Expansion Space, which amounts, in the aggregate,

together with any amounts previously paid to Sublessor on account of the

Security Deposit, shall thereafter be deemed to constitute and held by

Sublessor as the "Security Deposit" under this Sublease;

(d)           the

proportionate share of Base Building Operating Expenses allocable to the

Subleased Premises and the proportionate share of Operating Expenses of the

Complex and Taxes allocable to the Subleased Premises shall be proportionately

increased;

(e)           the

Expansion Space shall be delivered to Sublessee, and Sublessee shall accept the

Expansion Space in its then “AS-IS”

condition, without warranty or representation of any kind or nature (express or

implied, by operation of law or otherwise), and Sublessor shall have no

obligation to perform any work therein (including, without limitation,

demolition or any improvements existing therein or construction of any tenant

finish work or other improvements therein) and shall not be obligated to

reimburse Sublessee or provide any allowance for any costs related to the

demolition or construction of improvements therein.

 

[Remainder

of this page intentionally left blank. 

Signatures on next following page.]

IN WITNESS WHEREOF, the parties have executed this Sublease

as of the date first set forth above.

                                                                                                

 

                                                                                                

 

 

	

   

  	

  Sublessor:

  
	

   

  	

  ARTHUR

  D. LITTLE, INC.

  

  
	

   

  	

  By:

  	

  /s/     

  Timothy M. White

  
	

   

  	

   

  	

  Name: Timothy M. White

  
	

   

  	

   

  	

  Title:

  
	

   

  	

   

  
	

  Sublessee:

  	

   

  
	

   

  	

  PRIMIX

  SOLUTIONS INC.

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ David W. Chapman

  
	

   

  	

   

  	

  Name: David W. Chapman

  
	

   

  	

   

  	

  Title: Chief Financial Officer

  
				

 

 

EXHIBIT

A

 

Master

Lease

 

EXHIBIT

B

 

Subleased

Premises

 

 

EXHIBIT

C

 

Expansion

Space

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