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Exhibit 4.4  

SECURITY AGREEMENT  

        SECURITY AGREEMENT dated September 6, 2005, made by Lightspace Corporation, a Delaware corporation, with its principal offices located at
125 CambridgePark Drive, 4th Floor, Cambridge, MA 02140 (the "Grantor"), and AIGH Investment Partners, LLC, a Delaware limited liability company, or assigns, having an office located at
6006 Berkeley Ave., Baltimore, MD 21209, as agent for the Lenders (as defined herein) ("Secured Party"), in connection with the Notes (as hereinafter defined). 

PRELIMINARY STATEMENT:  

        The Grantor has issued to the parties listed on the attached Schedule I (each a "Lender", and collectively the "Lenders") the secured term notes listed
opposite the respective Lender's name on Schedule I, in the aggregate amount of $700,000, each dated as of the date hereof (collectively, the "Notes"). The parties desire to provide security
for the obligations of the Grantor to the Lenders under the Notes. 

        NOW,
THEREFORE, in consideration of the premises, and in order to induce the Lenders to make the loan under the Notes, the parties hereby agree as follows: 

        Section 1.    Grant of Security.    The Grantor hereby grants to Secured Party, for its benefit and for the
ratable benefit of each Lender, a continuing security interest in all of the Grantor's right, title and interest in and to the following, whether now owned or hereafter acquired (the "Collateral"): 

        (1)   All
accounts receivable in all forms, wherever located, now or hereafter existing, including, but not limited to: (a) all accounts, instruments, documents,
chattel paper and general intangibles, whether secured or unsecured, whether now existing or hereafter created or arising, and whether or not specifically assigned hereunder (any and all such items
being "Receivables") and any other items of real or personal property in which Grantor may grant a security interest in the future, (b) all right, title and interest in and to the goods or
other property represented by, or which by sale have resulted in, or securing any part of the Receivables, including, without limitation, all returned, reclaimed or
repossessed goods or other property, (c) all of Grantor's rights and remedies as an unpaid vendor or lienor, including stoppage in transit, replevin, repossession and reclamation,
(d) all amounts due to Grantor from any account debtor or obligor irrespective of whether such amounts have been assigned to Secured Party, (e) all of Grantor's right, title and interest
in and to, and all of Grantor's rights, remedies, security interests and liens under, guaranties or other contracts of suretyship, security agreements or mortgages on real property, deposits, leases
or other agreements or property securing or relating to any of the items referred to in subparagraph (a) hereof, or acquired for the purpose of securing and enforcing any of such items,
(f) all monies, securities and other property and the proceeds thereof, now or hereafter held or received, or in transit to the Secured Party from the Grantor, whether for safekeeping, pledge,
custody, transmission, collection or otherwise, (g) all books, records, ledged cards, and other property and general intangibles any time evidencing or relating to the Receivables ("Records"),
and (h) all proceeds of any of the foregoing in whatever form, including, without limitation, any claim against third parties for loss or damage to, or destruction of any or all of the
foregoing and cash, negotiable instruments and other instruments for the payment of money, chattel paper, security agreements of other documents; 

        (2)   All
equipment, machinery, fixtures, furniture, office machinery, vehicles, implements, tools, and other tangible personal property of every kind and description, now
owned or hereafter acquired by the Grantor in substitution or replacement thereof; 

 

        (3)   the
"IP Collateral", which consists of: 

        (a)   any
and all copyright rights, copyright applications, copyright registrations and like protections in each work or authorship and derivative work thereof, whether
published or unpublished and whether or not the same also constitutes a trade secret (collectively the "Copyrights"); 

        (b)   Any
and all trade secrets, and any and all intellectual property rights in computer software and computer software products (collectively, the "Trade Secrets"); 

        (c)   All
patents and patent applications as set forth on Exhibit A attached hereto (collectively the "Patents"); and 

        (d)   Any
trademark and service mark rights as set forth on Exhibit A attached hereto (collectively, the "Trademarks"); 

        (4)   All
proceeds of any and all of the foregoing (including, without limitation, proceeds which constitute property of the types described in clause (1) of this
Section 1), and, to the extent not otherwise included, all: (a) payments under insurance (whether or not the Secured Party is the loss payee thereof), or any indemnity, warranty, or
guaranty, payable by reason of loss or damage to or otherwise with respect to any of the foregoing, and this Agreement and (b) cash. 

        Section 2.    Security for Obligations.    This Agreement secures the payment and performance of all
obligations of the Grantor to Secured Party and the Lenders now or hereafter existing under this Agreement and the Notes, whether for principal, interest, fees, expenses, or otherwise (all such
obligations of the Grantor being the "Obligations"). 

        Section 3.    Grantor Remains Liable.    Anything herein to the contrary notwithstanding the exercise by the
Lenders or Secured Party of any rights hereunder shall not release the Grantor from any of its duties or obligations under the contracts and agreements included in the Collateral. 

        Section 4.    Collateral Assignment of IP Collateral.    

        (1)   Concurrently
and in connection with the security interest in the IP Collateral granted by Grantor to Secured Party (for itself and as agent for the Lenders), Grantor
also assigns and conveys to Secured Party all of Grantors' right, title and interest in, to and under the IP Collateral, provided,  however, that Secured
Party (for itself and as agent for the Lenders) and Grantor acknowledge and agree that the interest in the IP Collateral being
assigned hereby shall not be construed as a current assignment, but as a collateral assignment only, in order to secure the Grantor's obligations. 

        (2)   The
assignment and security interest granted hereby (the "Assignment") constitutes a first senior security interest in and lien on all of the IP Collateral. 

        (3)   The
Grantor authorizes and requests that the Register of Copyrights and the Commissioner of Patents and Trademarks record the Assignment. Without limitation on any other
representation or warranty of the Grantor set forth in this Agreement, the Grantor represents, warrants, covenants and agrees as follows: 

        (a)   Performance
of this Assignment does not conflict with or result in a breach of any agreement to which the Grantor is party or by which the Grantor is bound, except to
the extent that certain intellectual property agreements, listed on Exhibit B hereto, prohibit the assignment of the rights
thereunder to a third party without the licensor's or other party's consent and this Assignment constitutes an assignment; 

        (b)   During
the term of this Agreement, the Grantor will not transfer or otherwise encumber any interest in the IP Collateral, except for licenses granted by the Grantor in
the ordinary course of business or as set forth in this Agreement; 

2

 

        (c)   The
Grantor shall (i) protect, defend and maintain the validity and enforceability of the IP Collateral, (ii) use its best efforts to detect infringements
of the IP Collateral and promptly advise Secured Party in writing of material infringements detected and (iii) not allow any of the IP Collateral to be abandoned, forfeited or dedicated to the
public without the written consent of the Secured Party, which shall not be unreasonably withheld, unless the Grantor determines that reasonable business practices suggest that abandonment is
appropriate. 

        (d)   The
Grantor shall register as the Grantor ordinarily would in the ordinary course of business the most recent version of any of the Grantor's Copyrights, if not so
already registered, and shall, from time to time, execute and file such other instruments, and take such further actions as Secured Party may reasonably request from time to time to perfect or
continue the perfection of the Secured Party' interest in the IP Collateral; 

        (e)   This
Assignment creates in favor of the Secured Party a valid and perfected first priority security interest in the IP Collateral in the United States securing the
payment and performance of the obligations evidenced by the Notes upon making appropriate filings, if any are required in the reasonable discretion of Secured Party, with the United States Patent and
Trademark Office, Registrar of Copyrights and the Delaware Secretary of State. 

        (f)    The
Grantor shall not enter into any agreement that would materially impair or conflict with the Grantor's obligations hereunder without the Secured Party's prior
written consent, which consent shall not be unreasonably withheld. The Grantor shall not permit the inclusion in any material contract to which it becomes a party of any provisions that could or might
in any way prevent the creation of a security interest in the Grantor's rights and interests in any property included within the definition of the IP Collateral acquired under such contracts, except
that certain contracts may contain anti-assignment provisions that could in effect prohibit the creation of a security interest in such contracts. 

        (g)   Upon
any executive officer of the Grantor obtaining actual knowledge thereof, the Grantor will promptly notify the Secured Party in writing of any event that materially
adversely affects the value of
any IP Collateral, the ability of the Grantor to dispose of any IP Collateral or the rights and remedies of the Secured Party in relation thereto, including the levy of any legal process against any
of the IP Collateral. 

        Section 5.    Representations, Warranties and Covenants.    The Grantor represents, warrants and covenants as
follows: 

        (1)   The
Company will notify the Secured Party immediately in writing of any change in its address, name, or state or form of organization. 

        (2)   The
Grantor is the legal and beneficial owner of the Collateral free and clear of any Lien except for the security interest created by this Agreement. No effective
financing statement or other document similar in effect covering all or any part of the Collateral is on file in any recording office. 

        (3)   The
Grantor has exclusive and absolute right to collect the Collateral. 

        (4)   None
of the Receivables is evidenced by a promissory note or other instrument. 

        (5)   This
Agreement creates a valid security interest in the Collateral, securing payment of the Obligations, and all filings and other actions necessary or desirable to
perfect and protect such security interest have been duly taken, or shall be taken promptly upon execution hereof. 

        (6)   The
Grantor is a corporation duly incorporated, validly existing, and in good standing under the laws of the State of Delaware; has the corporate power and authority to
own its assets 

3

 

and
to transact its business, and is duly qualified and in good standing under the laws of each jurisdiction in which qualification is required 

        (7)   The
execution and performance by the Grantor of this Agreement have been duly authorized by all necessary corporate action and do not and will not (a) require any
consent or approval of the stockholders of such corporation; (b) contravene such corporation's character or bylaws; (c) violate any provision of any law, rule, or regulation; or
(d) result in a breach of or constitute a default under, any indenture or loan or credit agreement or any other agreement, lease, or instrument to which such corporation is a party or by which
it or its properties may be bound or affected. 

        (8)   This
Agreement is the legal, valid, and binding obligation of the Grantor, enforceable in accordance with its terms, except to the extent that such enforcement may be
limited by applicable bankruptcy, insolvency, and other similar laws affecting creditor's rights generally. 

        (9)   No
consent of any other person or entity and no authorization, approval, or other action by, and no notice to or filing with, any governmental authority or regulatory
body is required (a) for the grant by the Grantor of the assignment and security interest granted hereby or for the execution, delivery, or performance of this Agreement by the Grantor;
(b) for the perfection or maintenance of the assignment, and security interest created hereby (including the first priority nature of such assignment, and security interest); or (c) for
the exercise by the Secured Party of the rights provided for in this Agreement or the remedies in respect of the Collateral pursuant to this Agreement. 

        (10) There
are no conditions precedent to the effectiveness of this Agreement that have not been satisfied or waived. 

        (11) Grantor
shall not pledge, sell, assign, transfer, create or suffer to exist any security interest in or other lien or encumbrance on any part of the Collateral or grant
or suffer to exist any security interest in or other lien or encumbrance on any of Grantor's inventory or other assets to anyone other than Secured Party, without Secured Party's prior written
consent. Grantor hereby agrees to defend the same against any and all persons whatsoever. 

        Section 6.    Certain Grantor Covenants.    

        (1)   The
Grantor, at its sole expense, will take any and all actions as may be necessary or appropriate to facilitate the perfection and preservation of the security interest
granted herein, or to enable the Secured Party to exercise and enforce its rights and remedies hereunder with respect to any Collateral. 

        (2)   The
Grantor hereby authorizes the Secured Party to file one or more financing or continuation statements, and amendments thereto, relating to all or any part of the
Collateral without the signature of the Grantor where permitted by law. A photocopy or other reproduction of this Agreement or any financing statement covering the Collateral or any part thereof shall
be sufficient as a financing statement where permitted by law. 

        (3)   The
Grantor will furnish to the Secured Party from time to time statements and schedules further identifying and describing the Collateral and such other reports in
connection with the Collateral as Secured Party may reasonably request, all in reasonable detail. 

        (4)   The
Grantor hereby irrevocably appoints the Secured Party the Grantor's attorney-in-fact, with full authority in the place and stead of the
Grantor and in the name of the Grantor or otherwise, from time to time in the Secured Party's discretion, to take any action and to execute any instrument which the Secured Party may deem necessary or
advisable to accomplish the purposes of this Agreement. 

        (5)   The
Grantor has represented that its trade payables on the date hereof do not exceed $641,000 and has agreed that the proceeds of the Notes will be sufficient to fund
Grantor's salary 

4

 

requirements
and key vendors for at least 30 days without legal action commencing against Grantor by any of holders of such trade payables. 

        Section 7.    The Secured Party's Duties.    The powers conferred on the Secured Party hereunder are solely to
protect the Lenders' interest in the Collateral and shall not impose any duty upon them to exercise any such powers. Except for the safe custody of any Collateral in their possession and the
accounting for moneys actually received by them hereunder, the Secured Party shall have no duty as to any Collateral, as to ascertaining or taking action with respect to any Collateral, whether or not
the Secured Party have or are deemed to have knowledge of such matters, or as to the taking of any necessary steps to preserve rights against prior parties or any other rights pertaining to any
Collateral. The Secured Party shall be deemed to have exercised reasonable care in the custody and preservation of any Collateral in their possession if such Collateral is accorded treatment
substantially equal to that which it accords its own property. 

        Section 8.    Events of Default.    It shall be an event of default (an "Event of Default") hereunder if: 

        (a)   The
Grantor breaches any of the representations, warranties or covenants under the Notes, this Agreement, or any other agreements between the Lenders and the Grantor, of
even date herewith, or there occurs an Event of Default under the Note; 

        (b)   The
Grantor becomes insolvent, admits its inability to pay its debts as they mature, or is in any form of bankruptcy, arrangement or reorganization proceeding (whether
governed by Federal, state or common law); 

        (c)   The
Grantor fails to comply with, or defaults under, any term of any present or future agreement between it and any of the Lenders. 

        Section 9.    Remedies.    If any Event of Default shall have occurred and be continuing the Secured Party may
exercise in respect of the Collateral, in addition to any other rights and remedies provided for herein or otherwise available to it, all the rights and remedies of a secured party on default under
the Uniform Commercial Code (the "Code") (whether or not the Code applies to the affected Collateral), and also may (a) require the Grantor to, and the Grantor hereby agrees that it will, at
its expense and upon request of the Secured Party forthwith, assemble all or part of the Collateral as directed by the Secured Party and make it available to the Secured Party at a place to be
designated by the Secured Party which is convenient to the parties and (b) without notice except as specified below, sell the Collateral or any part thereof in one or more parcels at public or
private sale, at any of the Secured Party' offices or elsewhere, for cash, on credit or for future delivery, and upon such other terms as the Secured Party may deem commercially reasonable. The
Grantor agrees that, to the extent notice of sale shall be required by law, at least ten (10) days notice to the Grantor of the time and place of any public sale or the time after which any
private sale is to be made shall constitute reasonable notification. The Secured Party shall not be obligated to make any sale of Collateral regardless of notice of sale having been given. The Secured
Party may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which
it was adjourned. All proceeds of Collateral shall be applied in the following order of priority: (i) fees and expenses incurred by the Secured Party as described in Section 10(2) until
paid and satisfied in full, (ii) fees and expenses incurred by any Lender as described in Section 10(2) until paid and satisfied in full, (iii) due and unpaid interest on the
Notes until paid and satisfied in full, (iv) due and unpaid principal on the Notes until paid and satisfied in full, and (v) the remainder, if any, to Grantor or any other person or
entity lawfully entitled thereto. 

5

 

        Section 10.    Indemnity and Expenses.    

        (1)   The
Grantor agrees to indemnify the Secured Party and Lenders from and against any and all claims, losses, and liabilities (including, without limitation, reasonable
attorney fees) growing out of or resulting from this Agreement (including, without limitation, enforcement of this Agreement), except claims, losses, or liabilities resulting from the gross negligence
or willful misconduct of the Lenders or Secured Party. 

        (2)   The
Grantor will upon demand pay the amount of any and all reasonable expenses, including, without limitation, the reasonable fees and expenses of its counsel and of any
experts and agents, which the Lenders or Secured Party may incur in connection with (a) the preparation and administration of this Agreement and the Note; (b) the custody, preservation,
use or operation of, or the sale of, collection from, or other realization upon, any of the Collateral; (c) the exercise or enforcement of any of the rights of the Lenders or Secured Party
hereunder; or (d) the failure by the Grantor to perform or observe any of the provisions hereof. 

        Section 11.    Amendments; Etc.    No amendment, modification, termination, or waiver of any provision of this
Agreement, and no consent to any departure by the Grantor here from, shall in any event be
effective unless the same shall be in writing and signed by Secured Party and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. 

        Section 12.    Addresses for Notices.    All notices and other communications provided for hereunder shall be
in writing (including telegraphic, telex, and facsimile transmissions) and mailed or transmitted or delivered to the address for each such party set forth above or, as to either party, at such other
address as shall be designated by such party in a written notice to the other party. All such notices and other communications shall be effective when deposited in the mails or delivered to the
telegraph company, or sent, answer back received, respectively. 

        Section 13.    Waiver of Rights.    The Grantor waives the right to assert against any of the Lenders or
Secured Party or other holder any defense, counterclaim or set-off which it could assert against such person in any action brought by such holder upon the Company's obligations hereunder. 

        Section 14.    Continuing Security Interest; Assignments Under The Notes.    This Agreement shall create a
continuing security interest in the Collateral and shall: (1) remain in full force and effect until the payment in full of the Obligations and all other amounts payable under this Agreement;
(2) be binding upon the Grantor, its successors and assigns; and (3) inure to the benefit of, and be enforceable by, each of the Secured Party and Lenders and their respective
successors, transferees, and assigns. Without limiting the generality of the foregoing clause (3) the Secured Party and Lenders may assign or otherwise transfer all or any portion of their
rights and Obligations to any other person or entity, and such other person or entity shall thereupon become vested with all the benefits in respect thereof granted to the respective Secured Party or
Lender therein or otherwise. Upon the payment in full of the Obligations and all other amounts payable under this Agreement, the security interest granted hereby shall terminate and all rights to the
Collateral shall revert to the Grantor. Upon any such termination, the Secured Party will, at the Grantor's expense, execute and deliver to the Grantor such documents as the Grantor shall reasonably
request to evidence such termination. 

        Section 15.    Governing Law; Terms.    This Agreement shall be governed by and construed in accordance with
the laws of the State of New York, except to the extent that the validity or perfection of the security interest hereunder, or remedies hereunder, in respect of any particular Collateral are governed
by the laws of a jurisdiction other than the State of New York. 

        Section 16.    Submission to Jurisdiction.    The Grantor hereby submits to the non-exclusive
jurisdiction of the United States District Court for the Southern District of New York and of any State court sitting in New York County for purposes of all legal proceedings which may arise hereunder
or under the Note. The Grantor irrevocably waives to the fullest extent permitted by law, any objection 

6

 

which
it may have or hereafter have to the laying of the venue of any such proceeding brought in such a court, any claim that any such proceeding brought in such a court has been brought in an
inconvenient forum and trial by jury. The Grantor hereby consents to process being served in any such proceeding by the mailing of a copy thereof by registered or certified mail, postage prepaid, to
its address specified above or in any other manner permitted by law. 

THE
SECURED PARTY AND THE GRANTOR HEREBY WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING, CLAIM OR COUNTERCLAIM, WHETHER IN CONTRACT OR TORT, AT LAW OR IN EQUITY, ARISING OUT OF OR IN ANY WAY RELATED TO
THIS AGREEMENT. NO OFFICER OF THE SECURED PARTY HAS AUTHORITY TO WAIVE, CONDITION, OR MODIFY THIS PROVISION. 

        Section 17.    Agency; Action by Secured Party.    Each Lender hereby appoints the Secured Party as its agent
hereunder with respect to the Collateral and the creation, perfection, priority, preservation, protection and enforcement of a security interest therein in accordance with the terms of this Agreement.
Each Lender hereby authorizes the Secured Party to take such actions with respect to the Collateral, for the pro-rata benefit of the Lenders in accordance with Section 9, as the
Secured Party determines to take in its sole discretion, and each Lender agrees to indemnify and hold harmless the Secured Party for all costs, claims or expenses (including without limitation
attorneys' fees and expenses) in connection with such actions taken or omitted to be taken, except to the extent resulting from the gross negligence or willful misconduct of Secured Party. The Secured
Party shall provide prompt notice of any material action under this Agreement to the Lenders. 

7

 
SIGNATURE PAGE

SECURITY AGREEMENT

Lightspace Corporation

September 6, 2005  

        IN WITNESS WHEREOF, the Grantor, Secured Party and the Lenders have caused this Agreement to be duly executed and delivered by duly authorized representative as
of the date first above written. 

	

THE GRANTOR:	
 	

 	

 
	

 	
 	

Lightspace Corporation

a Delaware corporation
	

 	
 	

By:	

 Name: Ken Lang

Title: President
 Address for Notices:

125 CambridgePark Drive, 4th Floor

Cambridge, MA 02140

Fax: [617-868-1799]
	

SECURED PARTY:	
 	

 	

 
	

 	
 	

AIGH INVESTMENT PARTNERS, LLC
	

 	
 	

By:	

 Name: Orin Hirschman

Title: Manager

8

 
SIGNATURE PAGE

SECURITY AGREEMENT

Lightspace Corporation

September 6, 2005  

	

THE LENDERS:	
 	

 	

 
	

 	
 	

AIGH INVESTMENT PARTNERS LLC
	

 	
 	

By:	

 Name:

Title:
	

 	
 	

PRIME RESOURCE INC.
	

 	
 	

By:	

 Name:

Title:
	

 	
 	

 	

 Steven Antebi
	

 	
 	

 	

 Terry Deru
	

 	
 	

 	

 Lowell Anderson
	

 	
 	

 	

 Matthew Limpert
	

 	
 	

 	

 Branden Vernon
	

 	
 	

 	

 Tiffany Limpert

9

  

 
 

SCHEDULE I
  LENDERS    
    

	Name and Address
 
	 	Principal

Amount of Notes

	AIGH Investment Partners, LLC

6006 Berkeley Ave.

Baltimore, MD 21209	 	$	200,000.00
	

Prime Resource, Inc

1245 East Brickyard Rd, #590

Salt Lake City, Utah 84106	
 	
$	

100,000.00
	

Terry Deru

99 Cove lane

Layton, Utah 84040	
 	
$	

50,000.00
	

Tiffany Limpert

8395 S Parkhurst Circle

Sandy, Utah 84094	
 	
$	

50,000.00
	

Matthew Limpert

2551 S Fillmore Street

Salt Lake City, Utah 84106	
 	
$	

50,000.00
	

Lowell Anderson

7138 S 2000 E, #211

Salt Lake City Utah 84121	
 	
$	

75,000.00
	

Branden Vernon

13043 S 2950 W

Riverton, Utah 84065	
 	
$	

25,000.00
	

Steven Antebi

11601 Wilshire Blvd

Suite 2040

Los Angeles, CA 90025	
 	
$	

150,000.00
	
TOTAL	
 	
$	

700,000.00

10

 
 
 

EXHIBIT A    
    

        [Schedule all patents (by number), patent applications (by number), trademarks, URL's, copyrights, etc.] 

LS001US, UTILITY PATENT

Title: INTERACTIVE MODULAR SYSTEM

Application Serial #: 10/285342 

Foreign
Patent Filings based on LS001US

PCT Application Serial #: PCT/US03/16280 

LS003US, UTILITY PATENT

Title: INTERACTIVE SYSTEM

Application Serial #: 10/779089 

Foreign
Patent Filings based on LS003US

PCT Application Serial #: PCT/US04/04127 

LS004US, UTILITY PATENT

Application Serial #: 60/565133 

Foreign
Patent Filings based on LS004US

PCT Application Serial #: TBD 

LS005PUS, PROVISIONAL PATENT

Application Serial #: 60/602701

Trademark filed for:

"LIGHTSPACE"  

11

  

 
 

EXHIBIT B    
    

        Excluded Intellectual Property licenses, agreements, etc.: 

        NONE

12

 
 
 

EXHIBIT C    
    

Lightspace Corporation

Summary of Receivables and Factored
  September 5, 2005 

	Receivables

Accounts:
 
	 	Amount of Receivable

	Lightworks Interactive(*1)	 	$	264,000.00
	Old Navy(*2)	 	$	30,000.00
	 	 	

	Total	 	$	294,000.00
	 	 	

	Receivables that have been Factored

(sold off to raise money or meet past obligations)

Accounts:
 
	 	Factored Payment

	Japan Dealership	 	$	45,000.00
	Korea FEC Sale	 	$	15,000.00
	 	 	

	 	 	$	60,000.00
	 	 	

	(*1)
	These
receivables are tied to a reseller agreement in which the reseller has committed to a specific amount of sales. If no sales are made, the commitment stands and is divided up
into two quarterly payments.

	(*2)
	Signed
paperwork expected in present week. 

        This
Exhibit C is included to make explicit any remaining payments (the factored ones) expected by customers that are not subject to this security agreement as they have been sold
off already. 

13

 
 
 

FIRST AMENDMENT TO SECURITY AGREEMENT    
    

        FIRST AMENDMENT, dated as of September 6, 2005 (the "Amendment"), to the Security Agreement, dated
September 6, 2005 (the "Security Agreement"), each made by Lightspace Corporation, a Delaware corporation, with its principal offices located at
125 Cambridgepark Drive, 4th Floor, Cambridge, MA 02140 (the "Grantor"), and AIGH Investment Partners, LLC, a Delaware limited liability company, or
assigns, having an office located at 6006 Berkeley Ave., Baltimore, MD 21209, as agent for the Lenders (as defined in the Security Agreement) (the "Secured
Party"). Capitalized terms used but not defined herein shall have the respective meanings ascribed thereto in the Security Agreement. 

 
 

PRELIMINARY STATEMENT:    
    

        WHEREAS, certain Lenders have transferred their Notes to certain other Lenders; 

        WHEREAS,
the Grantor and Secured Party wish to amend the Security Agreement to accurately reflect the Notes issued to the Lenders; and 

        WHEREAS,
Section 11 of the Security Agreement provides that no amendment to the Security Agreement shall be effective unless it is in writing and signed by the Secured Party; 

        NOW,
THEREFORE, in consideration of the mutual covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties to the Security Agreement hereby agree as follows: 

        Section 1.    Amendments to the Security Agreement.    The Security Agreement is hereby amended as follows: 

        (1)   The
number "$700,000" in the Preliminary Statement is hereby deleted and replaced with the following: "$750,000"; and 

        (2)   Schedule I
to the Security Agreement is hereby deleted in its entirety and replaced by Schedule I attached to this Amendment. 

        Section 2.    Effect of Amendment.    Except as expressly provided in this Amendment, each of the terms and
provisions of the Security Agreement shall remain in full force and effect. 

        Section 3.    Counterparts.    This Amendment may be executed in one or more counterparts, each of which shall
be deemed to be an original, but all of which taken together shall constitute one and the same instrument. 

        Section 4.    Governing Law.    This Agreement shall be governed by and construed in accordance with the laws
of the State of New York, without giving effect to principles of conflicts of law. 

14

 
SIGNATURE PAGE

FIRST AMENDMENT TO SECURITY AGREEMENT

Lightspace Corporation

October     , 2005  

        IN WITNESS WHEREOF, the Grantor and the Secured Party have caused this Amendment to be duly executed and delivered by duly authorized representative as of the
date first above written. 

	THE GRANTOR:	 	 	 
	 	 	Lightspace Corporation

a Delaware corporation
	

 	
 	

By:	

 
	 	 	 	
 Name: Ken Lang

Title: President
 Address for Notices:
 125 Cambridgepark Drive, 4th Floor

Cambridge, MA 02140

Fax: [617-868-1799]
	

SECURED PARTY:	
 	

 	

 
	 	 	AIGH INVESTMENT PARTNERS, LLC
	

 	
 	

By:	

 
	 	 	 	
 Name: Orin Hirschman

Title: Manager

15

 
SIGNATURE PAGE

SECURITY AGREEMENT

Lightspace Corporation

September 6, 2005  

	THE LENDERS:	 	 	 
	 	 	AIGH INVESTMENT PARTNERS LLC
	

 	
 	

By:	

 
	 	 	 	
 Name:

Title:
	

 	
 	

PRIME RESOURCE INC.
	

 	
 	

By:	

 
	 	 	 	
 Name:

Title:
	

 	
 	

 	

 Steven Antebi
	

 	
 	

 	

 Terry Deru
	

 	
 	

 	

 Lowell Anderson
	

 	
 	

 	

 Matthew Limpert
	

 	
 	

 	

 Branden Vernon
	

 	
 	

 	

 Tiffany Limpert

16

  

 
 

SCHEDULE I
  
    LENDERS    
    

	Name and Address
 
	 	Principal

Amount of Notes

	AIGH Investment Partners, LLC

6006 Berkeley Ave.

Baltimore, MD 21209	 	$200,000.00
	Terry Deru

99 Cove lane

Layton, Utah 84040	 	$100,000.00
	Tiffany Limpert

8395 S Parkhurst Circle

Sandy, Utah 84094	 	$100,000.00
	Matthew Limpert

2551 S Fillmore Street

Salt Lake City, Utah 84106	 	$50,000.00
	Lowell Anderson

7138 S 2000 E, #211

Salt Lake City Utah 84121	 	$75,000.00
	Branden Vernon

13043 S 2950 W

Riverton, Utah 84065	 	$25,000.00
	Steven Antebi

11601 Wilshire Blvd

Suite 2040

Los Angeles, CA 90025	 	$200,000.00
	TOTAL	 	$750,000.00

17

 
 
 

SECOND AMENDMENT TO SECURITY AGREEMENT    
    

        SECOND AMENDMENT, dated as of November 15, 2005 (the "Amendment"), to the Security Agreement, dated
September 6, 2005, as amended, (the "Security Agreement"), each made by Lightspace Corporation, a Delaware corporation, with its principal
offices located at 125 Cambridgepark Drive, 4th Floor, Cambridge, MA 02140 (the "Grantor"), and AIGH Investment Partners, LLC, a Delaware limited
liability company, or assigns, having an office located at 6006 Berkeley Ave., Baltimore, MD 21209, as agent for the Lenders (as defined in the Security Agreement) (the
"Secured Party"). Capitalized terms used but not defined herein shall have the respective meanings ascribed thereto in the Security Agreement. 

        WHEREAS,
the Grantor borrowed (i) an additional amount of $150,000 pursuant to Senior Secured Notes of similar tenor to the Original Note (the "Other Note") and
(ii) $250,000 from Prime Resource, Inc. pursuant to a Secured and Guaranteed Note, dated June 15, 2005 (the "Prime Note"); 

        WHEREAS,
Prime has agreed to extend and restate the Prime Note in the form of a Senior Secured Note of similar tenor to the Original Note, and the parties wish to admit Prime as a Lender
under the Security Agreement; 

        WHEREAS,
the Grantor and Secured Party wish to amend the Security Agreement to accurately reflect the Notes issued to the Lenders; and 

        WHEREAS,
Section 11 of the Security Agreement provides that no amendment to the Security Agreement shall be effective unless it is in writing and signed by the Secured Party; 

        NOW,
THEREFORE, in consideration of the mutual covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties to the Security Agreement hereby agree as follows: 

        Section 1.    Amendments to the Security Agreement.    The Security Agreement is hereby amended as follows: 

        (1)   The
number "$750,000" in the Preliminary Statement is hereby deleted and replaced with the following: "$1,150,000 and such other amounts as may be loaned to the Grantor
from time to time by the Lenders pursuant to notes of similar tenor to the Senior Secured Notes"; 

        (2)   Schedule I
to the Security Agreement is hereby deleted in its entirety and replaced by Schedule I attached to this Amendment; and 

        (3)   The
parties agree to include the obligations of the Grantor under the Prime Note, as restated in the form of a Senior Secured Note, as Obligations under the Security
Agreement. 

        Section 2.    Effect of Amendment.    Except as expressly provided in this Amendment, each of the terms and
provisions of the Security Agreement shall remain in full force and effect. 

        Section 3.    Counterparts.    This Amendment may be executed in one or more counterparts, each of which shall
be deemed to be an original, but all of which taken together shall constitute one and the same instrument. 

        Section 4.    Governing Law.    This Agreement shall be governed by and construed in accordance with the laws
of the State of New York, without giving effect to principles of conflicts of law. 

        Section 5.    Conflicts.    The parties (i) recognize that Hahn & Hessen LLP represents AIGH
Investment Partners LLC in this and other matters and may continue to do so, (ii) recognize that Hahn & Hessen represents all the Lenders in the transactions contemplated by this
Amendment and (iii) waive any conflicts that may arise from such representation. 

        [balance
of page intentionally left blank] 

18

 
 
 

SIGNATURE PAGE
  SECOND AMENDMENT TO SECURITY AGREEMENT
  Lightspace Corporation
  November 15, 2005    
    

        IN WITNESS WHEREOF, the Grantor and the Secured Party have caused this Amendment to be duly executed and delivered by duly authorized representative as of the
date first above written. 

	THE GRANTOR:	 	 	 
	 	 	Lightspace Corporation

a Delaware corporation
	

 	
 	

By:	

 
	 	 	 	
 Name: Ken Lang

Title: President
 Address for Notices:

125 Cambridgepark Drive, 4th Floor

Cambridge, MA 02140

Fax: 617-868-1799
	

SECURED PARTY:	
 	

 	

 
	 	 	AIGH INVESTMENT PARTNERS, LLC
	

 	
 	

By:	

 
	 	 	 	
 Name: Orin Hirschman

Title: Manager

19

 
 
 

SIGNATURE PAGE
  SECURITY AGREEMENT
  Lightspace Corporation
  November 15, 2005    
    

THE
LENDERS: 

	 	 	AIGH INVESTMENT PARTNERS LLC
	

 	
 	

By:	

 
	 	 	 	
 Name:

Title:
	

 	
 	

PRIME RESOURCE INC.
	

 	
 	

By:	

 
	 	 	 	
 Name:

Title:
	

 	
 	

BLUE & GOLD ENTERPRISES, LLC
	

 	
 	

By:	

 
	 	 	 	
 Steven Antebi
	

 	
 	

 	

 Terry Deru
	

 	
 	

 	

 Lowell Anderson
	

 	
 	

 	

 Matthew Limpert
	

 	
 	

 	

 Branden Vernon
	

 	
 	

 	

 Tiffany Limpert

20

  

 
 

SCHEDULE I
  
    LENDERS    
    

	Name and Address
 
	 	Principal

Amount of Notes

	AIGH Investment Partners, LLC

6006 Berkeley Ave.

Baltimore, MD 21209	 	$	350,000.00
	

Prime Resource, Inc

1245 East Brickyard Rd, #590

Salt Lake City, Utah 84106	
 	
$	

350,000.00
	

Terry Deru

99 Cove lane

Layton, Utah 84040	
 	
$	

50,000.00
	

Tiffany Limpert

8395 S Parkhurst Circle

Sandy, Utah 84094	
 	
$	

50,000.00
	

Matthew Limpert

2551 S Fillmore Street

Salt Lake City, Utah 84106	
 	
$	

50,000.00
	

Lowell Anderson

7138 S 2000 E, #211

Salt Lake City Utah 84121	
 	
$	

75,000.00
	

Branden Vernon

13043 S 2950 W

Riverton, Utah 84065	
 	
$	

25,000.00
	

Blue & Gold Enterprises, LLC

Attn: Steven Antebi

11601 Wilshire Blvd

Suite 2040

Los Angeles, CA 90025	
 	
$	

200,000.00
	
TOTAL	
 	
$	

1,150,000.00

21

QuickLinks

SCHEDULE I LENDERS

EXHIBIT A

EXHIBIT B

EXHIBIT C

FIRST AMENDMENT TO SECURITY AGREEMENT

PRELIMINARY STATEMENT

SCHEDULE I LENDERS

SECOND AMENDMENT TO SECURITY AGREEMENT

SIGNATURE PAGE SECOND AMENDMENT TO SECURITY AGREEMENT Lightspace Corporation November 15, 2005

SIGNATURE PAGE SECURITY AGREEMENT Lightspace Corporation November 15, 2005

SCHEDULE I LENDERSExhibit 10.1

 

LIGHTSPACE CORPORATION

 

LEASE

 

 

TABLE OF CONTENTS

 

 

	
  ARTICLE I. REFERENCE DATA

  	
  1

  
	
  1.1.

  	
  SUBJECTS REFERRED TO

  	
  1

  
	
  1.2.

  	
  EXHIBITS.

  	
  3

  
	
   

  	
   

  
	
  ARTICLE II. PREMISES AND TERM

  	
  4

  
	
  2.1.

  	
  DESCRIPTION OF PREMISES.

  	
  4

  
	
  2.2.

  	
  TERM

  	
  4

  
	
  2.3.

  	
  RIGHT OF FIRST OFFER

  	
  4

  
	
  2.4.

  	
  TENANT TERMINATION RIGHT

  	
  5

  
	
  2.5.

  	
  DETERMINATION OF FAIR MARKET RENT

  	
  6

  
	
   

  	
   

  
	
  ARTICLE III. CONSTRUCTION

  	
  6

  
	
  3.1.

  	
  TERM COMMENCEMENT DATE

  	
  6

  
	
  3.2.

  	
  DELIVERY OF PREMISES

  	
  6

  
	
  3.3.

  	
  GENERAL PROVISIONS APPLICABLE TO CONSTRUCTION

  	
  7

  
	
  3.4.

  	
  ALTERATIONS AND ADDITIONS

  	
  7

  
	
  3.5.

  	
  REPRESENTATIVES

  	
  8

  
	
   

  	
   

  
	
  ARTICLE IV. RENT

  	
  9

  
	
  4.1.

  	
  ANNUAL RENT

  	
  9

  
	
  4.2.

  	
  ANNUAL OPERATING COST ESCALATION

  	
  9

  
	
  4.3.

  	
  ESTIMATED ANNUAL OPERATING EXPENSE ESCALATION PAYMENT

  	
  11

  
	
  4.4.

  	
  ELECTRICITY

  	
  11

  
	
  4.5.

  	
  CHANGE OF FISCAL YEAR

  	
  12

  
	
  4.6.

  	
  PARKING CHARGES

  	
  13

  
	
  4.7.

  	
  PAYMENTS

  	
  13

  
	
   

  	
   

  
	
  ARTICLE V. LANDLORD’S COVENANTS

  	
  13

  
	
  5.1.

  	
  LANDLORD’S COVENANTS
  DURING THE TERM

  	
  13

  
	
  5.2.

  	
  INTERRUPTIONS

  	
  14

  
	
   

  	
   

  
	
  ARTICLE VI. TENANT’S COVENANTS

  	
  15

  
	
  6.1.

  	
  TENANT’S COVENANTS DURING THE TERM

  	
  15

  
	
   

  	
   

  
	
  ARTICLE VII. DAMAGE AND DESTRUCTION; CONDEMNATION

  	
  20

  
	
  7.1.

  	
  FIRE OR OTHER CASUALTY

  	
  20

  
	
  7.2.

  	
  EMINENT DOMAIN

  	
  22

  
	
   

  	
   

  
	
  ARTICLE VIII. RIGHTS OF MORTGAGEE

  	
  23

  
	
  8.1.

  	
  PRIORITY OF LEASE

  	
  23

  
	
  8.2.

  	
  RIGHTS OF MORTGAGE HOLDERS; LIMITATION OF MORTGAGEE’S LIABILITY.

  	
  24

  
	
  8.3.

  	
  MORTGAGEE’S ELECTION

  	
  24

  
	
  8.4.

  	
  NO PREPAYMENT OR MODIFICATION, ETC.

  	
  24

  
	
  8.5.

  	
  NO RELEASE OR TERMINATION

  	
  25

  
	
  8.6.

  	
  CONTINUING OFFER

  	
  25

  
	
   

  	
   

  
	
  ARTICLE IX. DEFAULT

  	
  25

  
	
  9.1.

  	
  EVENTS OF DEFAULT

  	
  25

  

 

i

 

 

 

	
  9.2.

  	
  TENANT’S OBLIGATIONS AFTER TERMINATION

  	
  26

  
	
   

  	
   

  
	
  ARTICLE X. MISCELLANEOUS

  	
  27

  
	
  10.1.

  	
  NOTICE OF LEASE

  	
  27

  
	
  10.2.

  	
  NOTICES FROM ONE PARTY TO THE OTHER

  	
  27

  
	
  10.3.

  	
  BIND AND INURE

  	
  28

  
	
  10.4.

  	
  NO SURRENDER

  	
  28

  
	
  10.5.

  	
  NO WAIVER, ETC.

  	
  28

  
	
  10.6.

  	
  NO ACCORD AND SATISFACTION

  	
  28

  
	
  10.7.

  	
  CUMULATIVE REMEDIES

  	
  29

  
	
  10.8.

  	
  LANDLORD’S RIGHT TO CURE

  	
  29

  
	
  10.9.

  	
  ESTOPPEL CERTIFICATE

  	
  29

  
	
  10.10.

  	
  WAIVER OF SUBROGATION

  	
  29

  
	
  10.11.

  	
  ACTS OF GOD

  	
  30

  
	
  10.12.

  	
  BROKERAGE

  	
  30

  
	
  10.13.

  	
  SUBMISSION NOT AN OFFER

  	
  30

  
	
  10.14.

  	
  APPLICABLE LAW AND CONSTRUCTION

  	
  30

  
	
  10.15.

  	
  AUTHORITY OF TIENANT

  	
  31

  
	
   

  	
   

  
	
  ARTICLE XI. SECURITY DEPOSIT

  	
  31

  

 

ii

 

DATE OF LEASE EXECUTION:  February 27,
2004

 

ARTICLE I.

REFERENCE DATA

 

1.1.                              SUBJECTS REFERRED TO

 

Each
reference in this Lease to any of the following subjects shall be construed to
incorporate the data stated for that subject in this Section 1.1:

 

	
  LANDLORD:

  	
   

  	
  Cambridge Park 125 Realty Corporation,

  a Delaware corporation

  
	
   

  	
   

  	
   

  
	
  MANAGING AGENT:

  	
   

  	
  Spaulding and Slye LLC

  
	
   

  	
   

  	
   

  
	
  LANDLORD’S & MANAGING

  AGENT’S ADDRESS:

  	
   

  	
  Spaulding and Slye LLC

  150 Cambridge Park Drive

  Cambridge, MA 02140

  Attention: Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
  LANDLORD’S REPRESENTATIVE:

  	
   

  	
  John M. Kane

  
	
   

  	
   

  	
   

  
	
  TENANT:

  	
   

  	
  Lightspace Corporation,

  a Delaware corporation

  
	
   

  	
   

  	
   

  
	
  TENANT’S ADDRESS:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  For Notice and Billing to:

  	
   

  	
  Lightspace Corporation

  125 Cambridge Park Drive

  Cambridge, MA 02140

  
	
   

  	
   

  	
   

  
	
  And a copy for Notices to:

  	
   

  	
  Dimitry S. Herman, Esq.

  Bingham McCutchen LLP

  150 Federal Street

  Boston, MA. 02110

  
	
   

  	
   

  	
   

  
	
  TENANT’S REPRESENTATIVE:

  	
   

  	
  Ethan Evans

  
	
   

  	
   

  	
   

  
	
  BUILDING:

  	
   

  	
  The building located at 125 Cambridge Park Drive, Cambridge,
  Massachusetts.

  
	
   

  	
   

  	
   

  
	
  LOT:

  	
   

  	
  The parcel of land on which the Building is located and described in
  Exhibit A.

  
	
   

  	
   

  	
   

  
	
  PREMISES:

  	
   

  	
  The space located on the fourth (4th) floor of the Building as shown
  on Exhibit B.

  

 

 

	
  RENTABLE FLOOR AREA

  OF THE PREMISES:

  	
   

  	
  Approximately 12,153 square feet, comprised of one space of 2,468
  square feet (the “Ancillary Space”) and a second space of 9,685 square feet.

  
	
   

  	
   

  	
   

  
	
  TOTAL RENTABLE FLOOR

  AREA OF THE BUILDING:

  	
   

  	
  Approximately 183,920 spare feet

  
	
   

  	
   

  	
   

  
	
  TERM COMMENCEMENT DATE:

  	
   

  	
  The later of (i) March 1, 2004, and (ii) the date of
  this Lease.

  
	
   

  	
   

  	
   

  
	
  LEASE TERM OR TERM:

  	
   

  	
  Commencing on the Term Commencement Date as defined in
  Section 3.2 hereof and continuing for two (2) years thereafter,
  plus the partial month at the beginning of the Term, if any, unless sooner
  terminated as provided herein If there is any time available after the
  execution of this Lease and before the Term Commencement Date, Tenant will
  have, without charge, early access to the Premises to prepare for occupancy and
  to install telephone and data cabling prior to the Term Commencement Date,
  subject to all of the provisions of this Lease other than the payment of
  Annual Rent.

  
	
   

  	
   

  	
   

  
	
  ANNUAL RENT:

  	
   

  	
  $23.00 per square foot of Rentable Floor Area of the Premises, or
  $23,293.25 per calendar month, and proportionally at such rate for any
  partial month (net of Tenant’s charges for electrical consumption in the
  Premises).

  
	
   

  	
   

  	
   

  
	
  BASE ANNUAL ELECTRICITY

  CHARGE:

  	
   

  	
  $1.25 per square foot of Rentable Floor Area of the Premises

  
	
   

  	
   

  	
   

  
	
  BASE ANNUAL OPERATING COSTS:

  	
   

  	
  All of Landlord’s Operating Costs for calendar year 2004

  
	
   

  	
   

  	
   

  
	
  TENANT’S PROPORTIONATE SHARE:

  	
   

  	
  6.61%

  
	
   

  	
   

  	
   

  
	
  PERMITTED USES:

  	
   

  	
  Office Uses and uses accessory thereto, including without limitation
  a demonstration facility displaying prototypes of Tenant’s products.

  

 

2

 

	
  COMMERCIAL GENERAL

  LIABILITY INSURANCE:

  	
   

  	
  $1,000,000 bodily injury, property damage for single occurrence;
  $2,000,000 annual aggregate; $5,000,000 per single occurrence and $5,000,000
  per aggregate of excess or umbrella liability insurance.

  
	
   

  	
   

  	
   

  
	
  BROKER:

  	
   

  	
  Collectively, Spaulding and Stye Colliers International and Hammond
  Real Estate

  
	
   

  	
   

  	
   

  
	
  SECURITY DEPOSIT:

  	
   

  	
  $46,536.00

  
	
   

  	
   

  	
   

  
	
  TENANT’S PARKING

  ACCESS CARDS:

  	
   

  	
  A total of 36 (the “Base Cards”), 12 of which are for spaces located
  in the lot behind the Building (the “Blue Lot”) and 24 of which are for
  spaces located in the lot behind 100 & 150 Cambridge Park Drive (the
  “Red Lot”); together with 12 additional cards for spaces located in the Red
  Lot (the “Additional Cards”), at Tenant’s request, subject to availability,
  provided that Landlord shall have the right to terminate any or all of the
  Additional Cards upon thirty (30) days prior notice to Tenant.

  
	
   

  	
   

  	
   

  
	
  PARKING CHARGES:

  	
   

  	
  No charge for the Base Cards, and $100 per month for each Additional
  Card.

  

 

1.2.                              EXHIBITS.

 

The
exhibits listed below in this section are incorporated in this Lease by
reference and are to be construed as part of this Lease:

 

	
  EXHIBIT A

  	
  Description of Lot

  
	
  EXHIBIT B

  	
  Plan showing Premises

  
	
  EXHIBIT C

  	
  Cubicle Removal Plan 

  
	
  EXHIBIT D

  	
  Landlord’s Services 

  
	
  EXHIBIT E

  	
  Rules and Regulations

  

 

3

 

ARTICLE II.

PREMISES AND TERM

 

2.1.                              DESCRIPTION OF PREMISES.

 

Subject
to and with the benefit of the provisions of this Lease, Landlord hereby leases
to Tenant, and Tenant leases from Landlord, Tenant’s Space in the Building,
excluding exterior faces of exterior walls, the common facilities area and
building service fixtures and equipment serving exclusively or in common with
other parts of the Building.  Tenant’s
Space, with such exclusions, is hereinafter referred to as the Premises,

 

Tenant
shall have, as appurtenant to the Premises, the right to use in common with
others entitled thereto; (a) common walkways, driveways, hallways,
lobbies, ramps, loading docks and stairways located in the Building or on the
parcel on which the Building is located (the “Lot”), (b) building service
fixtures and equipment serving the Premises including elevators, (e) the
parking facility on a first-come, first-served basis in the location from time
to time designated by Landlord, Tenant’s use not to exceed the number of
parking spaces equal to the number of Tenant’s Parking Access Cards issued to
Tenant by Landlord, 12 of which shall be located in the Blue Lot behind the
Building and the remainder of which shall be located in the Red Lot across the
street from the Building, and (d) if the Premises include less than the
entire Rentable Floor Area of any floor, the common toilets in the central core
area of such floor.  Such rights shall be
always subject to the Rules and Regulations set forth in Exhibit E,
attached hereto and incorporated herein by reference, as the same may be
reasonably amended by the Landlord from time to time and such other reasonable Rules and
Regulations from time to time established by the Landlord by suitable notice to
Tenant, and to the right of the Landlord to reasonably designate and change
from time to time such areas, facilities, fixtures and equipment.

 

2.2.                              TERM

 

To
have and to hold for a period (the “Term”) commencing on the Term Commencement
Date (as defined in Section 3.1 hereof) and continuing for the Term,
unless sooner terminated as provided herein.

 

2.3.                              RIGHT OF FIRST OFFER

 

Provided
that Tenant fully occupies the Premises and has not assigned this Lease to any
other party and that no event of default or condition which with the giving of
notice or the passage of time, or both, would constitute an event of default
then exists, unless the same is cured within the applicable cure period, if
any, Landlord shall offer to Tenant, before offering to any party unrelated to
Landlord, other than Whole Foods Market Group, Inc.  which has a prior right on the Offer Space,
the space contiguous to the Premises shown on. 
Exhibit A.-i attached hereto consisting of approximately 4,363
square feet of Rentable Floor Area (the “Offer Space”).  Any such offer by Landlord to Tenant shall be
set forth in a written notice from Landlord to Tenant setting forth the
Landlord’s determination of Fair Market Rent and the other material business
terms under which Landlord proposes to offer the Offer Space on the market (“Landlord’s
Notice”).

 

4

 

If
Tenant notifies Landlord in writing within ten (10) days after Landlord’s
Notice that it elects to rent the Offer Space upon the terms set forth in
Landlord’s Notice (“Tenant’s Notice”), Landlord and Tenant shall within thirty
(30) days after Landlord’s Notice execute a written lease in substantially the
form of this Lease (except for the terms contained in the offer) or, at
Landlord’s option an amendment to this Lease, under which Tenant shall lease
the Offer Space upon the business terms set forth in Landlord’s Notice and
otherwise upon terms consistent with this Lease (the “New Lease”), unless
Tenant notifies Landlord that it disagrees with Landlord’s determination, of
Fair Market Rent, in which event, Fair Market Rent shall be determined as set
forth in section 2.5 below, and the New Lease shall be entered into within
thirty (30) days after Fair Market Rent is determined as provided in Section 2.5.  If Tenant does not notify Landlord in writing
within ten (10) days after Landlord’s Notice that it elects to rent the
Offer Space upon the terms set forth in Landlord’s Notice, or if Tenant
provides Tenant’s Notice to Landlord but fails to execute the New Lease within
thirty (30) days after Landlord’s Notice or the determination of Fair Market
Rent, as applicable, Landlord shall be free to lease the Offer Space to any
other party on whatever terms Landlord may negotiate with such other party,
even if such terms are more favorable than those set forth in Landlord’s Notice.  Tenant’s failure to execute the New Lease
after electing to rent the Offer Space as provided above, shall constitute a
default by Tenant hereunder, unless such failure was caused by Landlord or
unless such failure is cured within thirty (30) days of Landlord’s notice to
Tenant of such default.

 

2.4.                              TENANT TERMINATION RIGHT

 

In
the event that Tenant has a bona fide legitimate need for space equal to or
greater than 20,000 square feet of Rentable Floor Area (including the Premises)
and provides written notice (the “Addition Space Notice”) to Landlord thereof
on or before August 1, 2005, then Tenant shall have the right to terminate
this Lease unless Landlord is able to accommodate such space needs of Tenant by
providing such space in the Building or alternatively by providing such space
as a contiguous unit in the building located at 150 Cambridge Park Drive,
Cambridge, Massachusetts, or by causing the owner thereof to so provide such
space.  In the event that Landlord is
able to accommodate Tenant’s space needs as aforesaid, then Tenant shall
execute a written lease in substantially the form of this Lease for such space
(the “Expansion Lease”), except that the term of the lease shall be for a
period of not less than five (5) years from the date of such lease and the
rent shall be at the Fair Market Rent then prevailing in the area as reasonably
determined by Landlord and set forth in a notice to Tenant (“Landlord’s Rent
Notice”), unless Tenant notifies Landlord that it disagrees with Landlord’s
determination of Fair Market Rent (“Tenant’s Rent Notice”), in which event Fair
Market Rent shall be determined as set forth in Section 2.5 below, and the
Expansion Lease shall be entered into within thirty (30) days after Fair Market
Rent is determined as provided in Section 2.5 below.  If Tenant concurs with Landlord’s
determination of Fair Market Rent, Landlord and Tenant shall execute the
Expansion Lease within thirty (30) days of Landlord’s Rent Notice.  Tenant’s failure to execute the Expansion
Lease, as provided above, shall constitute a default by Tenant hereunder,
unless such failure was caused by Landlord or unless such failure is cured
within thirty (30) days of Landlord’s notice to Tenant of such default.  In the event that the Landlord cannot
accommodate such space needs of Tenant as aforesaid, then Tenant shall have the
right to terminate the Lease by no less than six (6) months prior notice
given to Landlord.

 

5

 

2.5.                              DETERMINATION OF FAIR MARKET RENT

 

For
purposes hereof, Fair Market Rent shall mean the fair rent for the Premises as
of the commencement of the New Lease or the Expansion Lease, as applicable,
under market conditions then existing.  Fair
Market Rent shall be determined by agreement between Landlord and Tenant, but
if Landlord and Tenant are unable to agree upon the Fair Market Rent within ten
(10) days after Tenant’s Notice or Tenant’s Rent Notice, as applicable,
then the Fair Market Rent shall be determined by appraisal made as hereinafter
provided by a board of three (3) reputable independent commercial real
estate consultants, appraisers, or brokers, each of whom shall have at least
ten years of experience in the Cambridge office rental market and each of whom
is hereinafter referred to as “appraiser”. 
Tenant and Landlord shall each appoint one such appraiser and the two
appraisers so appointed shall appoint the third appraiser.  The cost and expenses of each appraiser
appointed separately by Tenant and Landlord shall be borne by the party who
appointed the appraiser.  The cost and
expenses of the third appraiser shall be shared equally by Tenant and Landlord,
Landlord and Tenant shall appoint their respective appraisers no later than
twenty (20) days after Tenant’s Notice or Tenant’s Rent Notice, as applicable,
and shall designate the appraisers so appointed by notice to the other party,
The two (2) appraisers so appointed and designated shall appoint the third
appraiser no later than thirty (30) days after Tenant’s Notice or Tenant’s Rent
Notice, as applicable, and shall designate such appraisers by notice to
Landlord and Tenant.  The board of three (3) appraisers
shall determine the Fair Market Rent of the space in question as of the
commencement of the period to which the Fair Market Rent shall apply and shall
notify Landlord and Tenant of their determinations no later than sixty (60)
days after Tenant’s Notice or Tenant’s Rent Notice, as applicable.  If the determinations of the Fair Market Rent
of any two (2) or all three (3) appraisers shall be identical in
amount, said amount shall be deemed to be the Fair Market Rent of the subject
space.  If the determinations of all
three (3) appraisers shall be different in the amount, the average of the
two values nearest in amount shall be deemed the Fair Market Rent.  The Fair Market Rent of the subject space
determined in accordance with the provisions of this Section shall be
binding and conclusive on Tenant and Landlord.

 

ARTICLE III.

CONSTRUCTION

 

3.1.                              TERM COMMENCEMENT DATE

 

The
Term of this Lease shall commence on, and the Term Commencement Date shall be
the earlier of (a) the Term Commencement Date set forth in Section 1.1
hereof; or (b) the date on which Tenant commences use of the Premises to
operate its business in the Premises.

 

3.2.                              DELIVERY OF PREMISES

 

Tenant
acknowledges that Tenant has had an opportunity to inspect the Premises.  The Premises, shall be delivered to Tenant As
Is, Where Is, with all faults and without representation, warranty or guaranty
of any kind by Landlord to Tenant, except that Landlord represents to Tenant
that the Building and the Premises comply with the Americans with Disabilities
Act.  Tenant shall have the right to
purchase all existing furniture for $1.00, which right shall be deemed to have
been exercised unless Landlord receives notice from Tenant no later than February 16,
2004

 

6

 

specifying otherwise.  Notwithstanding the foregoing, Landlord shall
disassemble and remove the cubicles shown on the plan attached hereto as Exhibit C.

 

Landlord
will not approve any construction, alterations, or additions requiring unusual
expense to readapt the Premises to normal office use on lease termination or
increasing the cost of construction, insurance or taxes on the Building or of
Landlord’s services called for by Section 5.1 unless Tenant first gives
assurances acceptable to Landlord that such readaptation will be made prior to
such termination without expense to Landlord and makes provisions reasonably
acceptable to Landlord for payment of such increased cost.  Tenant’s construction, installation of
furnishings, and later changes or additions shall be coordinated with any work
being performed by Landlord in such manner as to maintain harmonious labor
relations and not to damage the Building or Lot or interfere with Building operations.

 

3.3.                              GENERAL PROVISIONS APPLICABLE TO CONSTRUCTION

 

All
construction work required or permitted by this Lease, whether by Landlord or
by Tenant, shall be done in a good and workmanlike manner and in compliance
with all applicable laws and all lawful ordinances, regulations and orders of
governmental authority and insurers of the Building and the Lot.  Either party may inspect the work of the
other at reasonable times and promptly shall give notice of observed defects.  Landlord’s obligations under Sections 3.2 and
3.3, if any, shall be deemed to have been performed when Tenant commences to
occupy any portion of the Premises for the Permitted Uses except for items
which are incomplete or do not conform with the requirements of Section 3.1
and as to which Tenant shall in either case have given written notice to
Landlord within three (3) weeks after such commencement.  If Tenant shall not have commenced to occupy
the Premises for the Permitted Uses within thirty (30) days after the Term
Commencement Date, a certificate of completion by a licensed architect or
registered engineer shall be conclusive evidence that Landlord has performed
all such obligations except for items stated in such certificate to be
incomplete or not in conformity with such requirements.  Tenant acknowledges that the Building will be
undergoing substantial renovation during the Term of the Lease.  Tenant acknowledges that its quiet enjoyment
and access to the Demised Premises during the Term may be disturbed by the
noise, dust, vibrations and other effects of demolition in the Building,
provided, however, that Landlord shall use reasonable efforts to avoid undue
interference with Tenant’s use of the Premises.

 

3.4.                              ALTERATIONS AND ADDITIONS

 

This
Section 3.4 shall apply before and during the Term.  Tenant shall not make any alterations and
additions to the Premises except in accordance with plans and specifications
first approved by Landlord, which approval shall not be unreasonably withheld,
conditioned or delayed, provided that the proposed alterations or additions do
not (a) involve or affect any structural or exterior element of the
Building or building mechanical, electrical or plumbing systems, including the
common facilities of the Building, or (b) require unusual expense to readapt
the Premises to normal office use on Lease termination or increase the cost of
construction or of insurance or taxes on the Building or the Lot.  Notwithstanding the foregoing, provided that
proposed improvements do not conflict with (a) or (b) above, Landlord’s
approval shall not be required for improvements costing less than $15,000 in
the aggregate in any twelve (12) month period, but Landlord shall be provided
no less than thirty (30) days prior notice of Tenant’s

 

7

 

intent to undertake such improvements.  All alterations and additions (with the
exception of any trade fixtures of Tenant) shall become a part of the Premises,
unless and until Landlord, at its option, shall specify the same for removal in
writing pursuant to Section 6.1.2 at the time that Landlord approves such
alterations or additions.  All of Tenant’s
alterations and additions and installation and delivery of telephone systems,
furnishings, and equipment shall be coordinated with any work being performed
by Landlord and shall be performed in such manner, and by such persons as shall
maintain harmonious labor relations and not cause any damage to the Building or
interference with Building construction or operation and, except for installation
of furnishings, equipment and telephone systems, and except as otherwise
expressly set forth herein, shall be performed by general contractors first
approved by Landlord (which approval shall not be unreasonably withheld,
conditioned or delayed).  Before
commencing any work Tenant shall: secure all licenses and permits necessary
therefor; deliver to Landlord a statement of the names of all its contractors
and subcontractors (the identity of which must have been previously approved by
Landlord as hereinabove contemplated) and the estimated cost of all labor and
material to be furnished by them; and cause each contractor to carry (i) worker’s
compensation insurance in statutory amounts covering all the contractor’s and
subcontractor’s employees and (ii) comprehensive public liability
insurance with such limits as Landlord may reasonably require, but in no event
less than a combined single limit of $ 1,500,000 (all such insurance to be
written by companies reasonably approved by Landlord and insuring Landlord and
Tenant as well as the contractors), and to deliver to Landlord certificates of
all such insurance.  Tenant agrees to pay
promptly when due, and to defend and indemnify Landlord from and against, the
entire cost of any work done on the Premises by Tenant, its agents, employees
or independent contractors, and not to cause or permit any liens for labor or
materials performed or furnished in connection therewith to attach to the
Building or the Lot if such liens secure amounts that are past due and owing.  Tenant shall pay within fourteen (14) days
after being billed therefor by Landlord, as additional rent, one hundred
percent (100%) of any increase in real estate taxes on the Premises not
otherwise billed to Tenant which shall, at any time after the commencement of
the Term, result from any alteration, addition or improvement to the Premises
made by or on behalf of Tenant.

 

In
connection with the installation of telecommunication equipment by Tenant, such
installation shall occur only in such locations and in such a manner as
reasonably approved in writing by the Landlord and none of such wires, ducts or
equipment shall be located in areas outside the Premises (provided, however,
that Tenant may install wires and cables in risers and ducts outside the Premises
which are in existence on the date of this Lease and for which there exists, in
Landlord’s sole discretion, adequate space for Tenant’s wires and cables).  Notwithstanding any other provision of this
Lease, telecommunication wises, ducts or equipment shall be removed by Tenant
at the expiration of the Term or earlier termination of this Lease, unless
otherwise approved by Landlord in writing, and all damage caused by such
removal repaired.  Telephone switches,
antennae, electronic distribution boxes and similar equipment shall only be
located within the Premises.  Landlord
shall not be liable for any loss, damage or interruption of service related to
such facilities.

 

3.5.                              REPRESENTATIVES

 

Each
party authorizes the other to rely in connection with their respective rights
and obligations under this Article III upon approval and other actions on
the party’s behalf by Landlord’s

 

8

 

Representative in the case of Landlord or
Tenant’s Representative in the case of Tenant or by any person designated in
substitution or addition by notice to the other party.

 

ARTICLE IV.

RENT

 

4.1.                              ANNUAL RENT

 

Tenant
agrees to pay rent to Landlord without any offset or reduction whatever (except
as made in accordance with the express provisions of this Lease), the Annual
Rent in equal monthly installments in advance on the first day of each calendar
month included in the Term after the Term Commencement Date; and for any
portion of a calendar month at the beginning or end of the Term, at the
proportionate rate payable for such portion, in advance.

 

4.2.                              ANNUAL OPERATING COST ESCALATION

 

In
addition to Annual Rent, Tenant shall pay to Landlord as additional rent,
Tenant’s Proportionate Share of Annual Operating Costs (as hereinafter defined)
which is in excess of Base Annual Operating Costs (“Tenant’s Escalation Payment”).  Tenant’s Proportionate Share of Annual
Operating Costs shall be determined by multiplying Annual Operating Costs by a
fraction, the numerator of which is the Rentable Floor Area of the Premises and
the denominator of which is the Total Rentable Floor Area of the Building.  In the event that the Building is not fully
occupied, such Annual Operating Costs (and Base Annual Operating Costs in the
event that the Building is not fully occupied in calendar year 2004) shall be
reasonably adjusted to reflect the costs which would be incurred if the
Building were 95% occupied.

 

“Annual
Operating Costs” shall mean the actual expenses paid or incurred by Landlord in
any given calendar year of the Term for the operation, maintenance and
management of the Building and Lot and all real estate taxes and assessments,
general or special, ordinary or extraordinary, foreseen or unforeseen, imposed
upon the Building and Lot and any future improvement of whatever kind thereto
or thereon.  Annual Operating Costs shall
include without limitation:

 

(a)                                  real estate
taxes on the Building and Lot and off-site parking areas; (b) installments
and interest on assessments for public betterment or public improvements; (c) expenses
of any proceedings for abatement of taxes and assessments with respect to any
fiscal year or fraction of a fiscal year; (d) service, repair, replacement
and other maintenance to the Building and Lot and components thereof, (e) wages
and salaries (and taxes and other charges imposed upon employers with respect
to such wages and salaries) and fringe benefits and worker’s compensation
insurance premiums paid to persons employed by the Landlord, provided that such
persons are directly involved in the operation of the Building or Lot for
rendering service in the operation, maintenance, and repair of the Building and
Lot and related facilities and off-site parking areas and amenities; (f) cost
of independent contractors hired for the operation, maintenance and repair of
the Building and Lot and related facilities and amenities (which payments may
be to affiliates of Landlord provided the same are at reasonable rates
consistent with the type of occupancy and the services rendered); (g) costs
of electricity, steam, water, fuel, heating, lighting, air conditioning, sewer,
and other utilities chargeable to the operation and maintenance of the Building
and Lot net of tenant’s electric; (h) cost of insurance

 

9

 

including insurance
deductible for and relating to the Building and the Lot, including fire and
extended coverage (or such greater coverages as Landlord may elect to carry),
elevator, boiler, sprinkler leakage, water damage, public liability and
property damage, plate glass, and rent protection; (i) costs of supplies;
(j) costs of window cleaning, janitorial services, security services,
landscaping, snow and ice removal and painting; (k) sales or use taxes on
supplies and services; (1) consulting, accounting fees, legal, tax appeal,
engineering and other professional fees and expenses; (m) management fees; (n)
reasonable contributions, costs or expenses related to common areas or
facilities and off site parking areas of any office park or development of
which the Building or Lot are a part, (o) alterations and improvements to the
Building and Lot which are not capital in nature made by reason of any
requirement of any insurance underwriters or any federal, state, or local
statutes, regulations, ordinances, or any other duly constituted public
authorities having jurisdiction over the Building and Lot; and (p) all ordinary
maintenance, repair, cleaning and operation costs accounted with providing food
services in accordance with Section 5.1.5 and (q) without limiting any of
the foregoing, any other expense or charge which, in accordance with sound
accounting and management principles generally accepted, would be construed as
an operating expense.  Notwithstanding
any provisions to the contrary set forth in the Lease, the term Annual
Operating Costs shall not include (i) the interest and amortization on
mortgages for the Building and Lot or leasehold interests therein; (ii) any
charge for depreciation; (iii) leasing commissions or legal fees for the
negotiation and enforcement of leases; (iv) the cost of special services
rendered to tenants (including Tenant) for which a special charge is made; (v) interest,
fines or penalties for any late payments by Landlord not due to the act or
neglect of Tenant or its agent; (vi) legal fees incurred in connection
with Landlord’s noncompliance with or violation of law; (vii) costs of
repairs, replacements or other work occasioned by fire, windstorm or other
casualty, or the exercise by governmental authorities of the right of eminent
domain to the extent reimbursed to Landlord through insurance proceeds or
condemnation awards; (viii) costs of a capital nature, except for
Essential Capital Improvements, including, but not limited to, capital
additions, capital improvements, capital repairs, capital maintenance, capital
alterations, capital replacements, capital equipment and capital tools, and/or
capital redesign, all in accordance with generally accepted accounting
principles, consistently applied, except to the extent amortized over the
useful life of the capital item in question; (ix) costs directly resulting
from the negligence or willful misconduct of Landlord, its employees, agents
and/or contractors; (x) except for a reasonable management fee, costs of Landlord’s
general overhead and general administrative expenses (individual, partnership
or corporate, as the case may be), which costs would not be chargeable as an
operating expense in accordance with generally accepted accounting principles,
consistently applied; (xi) costs to the extent that Landlord is compensated or
reimbursed by insurance or other means of recovery to the extent the proceeds
are compensation for expenses which previously were included in Operating
Expenses during the Term for the years in which such proceeds were received;
and (xii) costs of any employee of Landlord who is not directly involved in the
operations of the Building or Lot.

 

In
the event Landlord shall make a capital expenditure for Essential Capital
Improvements, as hereinafter deed, during any year, the annual amortization of
such expenditure (determined by dividing the amount of the expenditure by the useful
life of the improvement, as deter pined by Landlord), together with interest at
the greater of the Prime Rate prevailing plus 2% or Landlord’s actual borrowing
rate for such Essential Capital Improvements shall be deemed part

 

10

 

of Annual Operating Costs for each year of
such useful life.  As used herein, “Essential
Capital Improvement” means any of the following:

 

(i)                                     a labor saving
device, energy saving device or other installation, improvement or replacement
which reduces Annual Operating Costs as referred to above, whether or not
voluntary or required by governmental mandate; or

 

(ii)                                  an
installation, change, improvement, addition, alteration, or removal of any
architectural barriers, whether or not the foregoing are structural in nature,
made by reason of any governmental requirement whether or not such governmental
requirement exists on the date of the execution of this Lease if such
governmental requirement is or will be applicable generally to similar office
buildings; or

 

(iii)                               an installation
or improvement which directly enhances the health or safety of tenants in the
Building generally, whether or not voluntary or required by governmental
mandate (as for example, without limitation, for life safety or security).

 

(iv)                              costs or
expenditures incurred in replacing compressors and refrigeration equipment in
order to comply with regulations regarding ozone depleting refrigerants or
resulting from the excessive cost of or inability to obtain such materials.

 

4.3.                              ESTIMATED ANNUAL OPERATING EXPENSE ESCALATION PAYMENT

 

If,
with respect to any fiscal year or fraction thereof during the Term, Landlord
estimates that Tenant will be obligated to pay Tenant’s Escalation Payment,
then Tenant shall pay, as additional rent, on the first day of each month of
such fiscal year and each ensuing fiscal year thereafter, a reasonable estimate
equal to 1/12th of Tenant’s Escalation Payment for the respective fiscal year (“Estimated
Monthly Operating Cost Payments”), with an appropriate additional payment or
refund to be made within 30 days after Landlord’s Statement (as hereafter
defined) is delivered to Tenant.  Landlord
may adjust such Estimated Monthly Operating Cost Payment from time to time and
at any time during a fiscal year, and Tenant shall pay, as additional rent, on
the first day of each month following receipt of Landlord’s notice thereof, the
adjusted Estimated Monthly Operating Cost Payment.

 

As
soon as practicable after the end of each fiscal year ending during the Term
and after lease termination, Landlord shall render a statement (“Landlord’s
Statement”) in reasonable detail and according to usual accounting practices
certified by Landlord and showing for the preceding fiscal year or fraction
thereof, as the case may be, Landlord’s Annual Operating Costs, Tenant’s
Proportionate Share thereof, and Tenant’s Escalation Payment, as defined above.  Landlord’s current fiscal year is the
calendar year.

 

4.4.                              ELECTRICITY

 

Tenant
will be billed for electricity for Tenant’s lights and outlet consumption on a
monthly basis based on an annual estimate of $1.25 per rentable square foot (which
amount may be adjusted by Landlord, from time to time, to reflect increases in
the electrical costs to the Building).  Should
the actual average expense to Landlord per square foot for Tenant’s electricity
be different, an additional charge or a credit will be made at the end of each
year’s occupancy to

 

11

 

be paid with or credited against the next
monthly charge for Tenant’s electricity (or to be paid directly to Tenant if
the Term has expired or the Lease has terminated).  Notwithstanding the foregoing, Landlord
reserves the right to assess Tenant’s charge for electricity based on an
engineer’s survey of Tenant’s electrical usage conducted from time to time or
on the sub-metering of all or part of the Premises.  Such charges for Tenant’s electricity shall
be paid by Tenant as additional rent at the same time and in the same manner as
payments of Annual Rent.

 

Tenant
covenants and agrees that its total connected lighting load will not exceed the
maximum load from time to time permitted by applicable governmental regulations.  In the event Tenant introduces into the
Premises personnel or equipment which overloads the capacity of the Building’s
electrical system or in any other way interferes with the system’s ability to
perform properly, supplementary systems including check meters may, if and as
needed, at Landlord’s option, be provided by Landlord, at Tenant’s
expense.  Landlord shall not in any way
be liable or responsible to Tenant for any loss or damage or expense which
Tenant may sustain or incur if, during the Term of this Lease, either the
quantity or character of electric current is changed or electric current is no
longer available or suitable for Tenant’s requirements due to a factor or cause
beyond Landlord’s control.

 

Landlord
reserves the exclusive right to provide electric and other utility service to
the Building.  Tenant may request
permission from Landlord (which consent may be withheld in its sole discretion)
to arrange electric and other utility service exclusively serving the Premises.  Should such permission be granted, however,
such service shall be installed only in such locations and in such manner as
shall be specifically, approved by Landlord in its sole discretion, Tenant
shall be responsible for restoration of any damage caused by such installation
and Tenant shall be responsible for removal of such installations at the
termination of this Lease.  Landlord may
limit Tenant’s choice of electrical or other utility providers in order to avoid
proliferation of such services to the Building or for any other reason.  In no event, however, shall Landlord be
responsible for any damages or inconvenience caused by interruption in or poor
quality of electricity or other utility services provided to the Building or
the Premises unless such damages are caused by the negligence of Landlord, its
agents or employees.

 

4.5.                              CHANGE OF FISCAL YEAR

 

Landlord
shall have the right from time to tune to change the periods of accounting
under Section 4.2 for the entire Building to any annual period other than
a calendar year, and upon any such change all items referred to in Section 4.2
shall be appropriately apportioned.  In
all Landlord’s Statements rendered under Section 4.2, amounts for periods
partially within and partially without the accounting periods shall be
appropriately apportioned, and any items which are not determinable at the time
of a Landlord’s Statement shall be included therein on the basis of Landlord’s
estimate, and with respect thereto Landlord shall render promptly after
determination a supplemental Landlord’s Statement, and appropriate adjustment
shall be made according thereto.  All
Landlord’s Statements shall be prepared on an accrual basis of accounting.

 

12

 

4.6.                              PARKING CHARGES

 

Tenant
shall pay all Parking Charges due hereunder as additional rent at the same time
and in the same manner as Annual Rent.

 

4.7.                              PAYMENTS

 

All
payments of Annual Rent and additional rent shall be made to Managing Agent, or
to such other person as Landlord may from time to time designate by notice to
Tenant.  If any installment of Annual
Base Rent or additional rent or payments due on account of leasehold
improvements is paid more than 10 days after the due date thereof, at Landlord’s
election, it shall bear interest at a rate equal to the average prime
commercial rate from time to time established by the three largest national
banks in Boston, Massachusetts plus 4% per annum from such due date, which
interest shall be immediately due and payable as further additional rent.

 

ARTICLE V.

LANDLORD’S COVENANTS

 

5.1.                              LANDLORD’S COVENANTS DURING THE TERM

 

Landlord
covenants during the Term:

 

5.1.1.                     Building Services.
 To furnish during normal working hours
heat, air-conditioning, elevator service and hot and chilled water service and
after normal working hours on business days cleaning service as shown in Exhibit D.  “Normal working hours” shall mean the hours
of 8:00 a.m. through 6:00 p.m. Monday through Friday and the hours of
8:00 a.m. through 1:00 p.m. on Saturdays, and no hours on legal
holidays and Sundays; provided, however, that Tenant shall have access to the
Building 24 hours a day, 365 days a year, by means of a key or other access
device to the main lobby of the Building to be provided to Tenant by Landlord.  Tenant shall pay when due all amounts and
charges for such services during hours other than normal working hours and
shall indemnify and hold harmless Landlord from and against any and all claims,
liabilities, damages, losses, costs and expenses (including reasonable
attorneys’ fees) in connection therewith. 
Landlord is not and shall not be required to furnish to Tenant or any
other occupant of the Premises telephone or other communication service but
agrees to allow Tenant to contract for and install equipment for such service.

 

5.1.2.                     Additional Building Services.  To furnish, through Landlord’s employees or
independent contractors, reasonable additional Building operation services upon
reasonable advance request of Tenant at equitable rates including a reasonable
administrative fee from time to time established by Landlord to be paid by
Tenant.

 

5.1.3.                     Repairs.  Except as otherwise provided in Article VII,
to make such repairs to the roof; exterior walls, floor slabs, other structural
components and common facilities of the Building and the Lot as may be
necessary to keep them in serviceable condition.

 

5.1.4.                     Tenant Signage.  To include Tenant’s name on (a) the
outdoor signage monument visible from Cambridge Park Drive, (b) the Tenant
directory maintained by Landlord in the main lobby of the Building and (c) the
floor of the Building on which the Premises are located, and to provide a
Building standard sign on or adjacent to the entrance door to the Premises.

 

13

 

5.1.5.                     Food Service.  Landlord (or any affiliate or agent
designated by Landlord) may provide, within the Building or any building in the
office park in which the Building is located known as Cambridge Park (an “Office
Park Building”), a food service of a size, type, location and serving capacity
as Landlord shall deem suitable, in its sole discretion.

 

If
during any six-month period, the mathematical average of the number of luncheon
meals served by the food service facility per day is fewer than 300, or the
Food Service Losses incurred by the Landlord in operating the food service
facility during such six-month period exceed $25,000, then the Landlord shall
have the right and option, in its sole discretion, to take any steps necessary
to reduce or eliminate the losses (including without limitation, modification
or termination of the food service), unless one hundred percent (100%) of the
tenants occupying the Building agree that the Landlord’s Annual Operating Costs
hereunder for the purpose of calculating the Annual Operating Expense
Escalation shall include one hundred percent (100%) of the Food Service Losses,
without limitation.

 

Landlord
reserves the right to approve Tenant’s use of a food service operator other
than the Landlord’s food service operator, if any.  Such approval will not be unreasonably
withheld.

 

5.1.6.                     Quiet Enjoyment.  That Landlord has the right to make this
Lease and that Tenant on paying the rent and performing its obligations hereunder
shall peacefully and quietly have, hold and enjoy the Premises throughout the
Term without any manner of hindrance or molestation from Landlord or anyone
claiming under Landlord, subject however to all the terms and provisions hereof.

 

5.2.                              INTERRUPTIONS

 

Landlord
shall not be liable to Tenant for any compensation or reduction of rent by
reason of inconvenience or annoyance, injury, death or for loss of business
arising from power or other utility losses or shortages, air pollution or
contamination, or from the necessity of Landlord’s entering the Premises for
any of the purposes in this Lease authorized, or for repairing the Premises or
any portion of the Building or the Lot or for any interruption or termination
(by reason of any cause reasonably beyond Landlord’s control, including without
limitation, loss of any applicable license or government approval) of the food
service provided by Landlord pursuant to Section 5.1.5.  In case Landlord is prevented or delayed from
making any repairs, alterations or improvements, or furnishing any service or
performing any other covenant or duty to be performed on Landlord’s part, by
reason of any cause beyond Landlord’s reasonable control, Landlord shall not be
liable to Tenant therefor, nor, except as expressly otherwise provided in Article VII,
shall Tenant be entitled to any abatement or reduction of rent by reason
thereof, nor shall the same give rise to a claim in Tenant’s favor that such
failure constitutes actual or constructive total or partial, eviction from the
Premises.  Landlord shall use reasonable
efforts in case of power losses or shortages, air pollution or contamination by
hazardous substances to restore the services required to be provided under this
Lease.  However, Landlord agrees to use
its best efforts to diligently remedy the situation and minimize the disruption
to Tenant’s business.

 

Landlord
reserves the right to stop any service or utility system when necessary by
reason of accident or emergency or until necessary repairs have been completed.
 Except in ease of

 

14

 

emergency repairs, Landlord will give Tenant
reasonable advance notice of any contemplated stoppage and will use
reasonable efforts to avoid unnecessary inconvenience to Tenant by reason
thereof.

 

Landlord
also reserves the right to institute such policies, programs and measures as
may be necessary, required or expedient for the conservation or preservation of
energy or energy services or as may be necessary or required to comply with
applicable codes, rules, regulations or standards.

 

ARTICLE VI.

TENANT’S COVENANTS

 

6.1.                              TENANT’S COVENANTS DURING THE TERM

 

Tenant
covenants during the Term and such further time as Tenant occupies any part of
the Premises:

 

6.1.1.                     Tenant’s Payments.  To pay when due (a) all Annual Rent, (b) all
taxes which may be imposed on Tenant’s personal property in the Premises
(including, without limitation, Tenant’s fixtures and equipment) regardless to
whomever assessed, (c) as additional rent, Tenant’s Escalation Payments, (d) all
charges by public utilities for electricity, telephone (including service
inspections therefor) and other services rendered to the Premises not otherwise
required hereunder to be furnished by Landlord without charge and not consumed
in connection with any services required to be furnished by Landlord without
charge, and (e) as additional rent, all charges to Landlord for services
rendered pursuant to Section 5.1.2 hereof.

 

6.1.2.                     Repairs and Yielding Up.  Except as otherwise provided in Article VII
and Section 5.1.3, to keep the Premises in good order, repair and
condition, reasonable wear only excepted; and at the expiration or termination
of this Lease peaceably to yield up the Premises and all alterations and
additions therein, including all telephone and data wiring installed by or at
the request of tenant, in such order, repair and condition, first removing all
goods and effects of Tenant and any alterations and additions, the removal of
which is required by agreement or specified to be removed by Landlord by notice
to Tenant which notice, if the alteration or addition requires Landlord’s
approval, shall be delivered at the time that Landlord approves such work, and
repairing all damage caused by such removal and restoring the Premises and
leaving them clean and neat.

 

6.1.3.                     Occupancy and Use.  Continuously from the Term Commencement Date,
to use and occupy the Premises only for the Permitted Uses; not to injure or
deface the Building or the Lot; to keep the Premises clean and in a neat and
orderly condition; and not to permit in the Premises any use thereof which is
improper, offensive, contrary to law or ordinances, or liable to create a
nuisance or to create an unsafe or hazardous condition, or to invalidate or
increase the premiums for any insurance on the Building or its contents or
liable to render necessary any alteration or addition to the Building; not to
dump, flush, or in any way introduce any Hazardous Materials or any other toxic
substances into the septic, sewage or other waste disposal system serving the
Premises, not to generate, store or dispose of Hazardous Materials in or on the
Premises, or the Lot or dispose of Hazardous Materials from the Premises to any
other location

 

15

 

without
the prior written consent of Landlord and then only in compliance with the
Resource Conservation and Recovery Act of 1976, as amended, 42 U.S.C.  § 6901 et seq., and all other applicable
laws, ordinances and regulations; to notify Landlord of any incident which
would require the filing of a notice under applicable federal, state, or local
law; not to use, store or dispose of Hazardous Materials on the Premises
without first submitting to Landlord a list of all such Hazardous substances and
all permits required therefor and thereafter providing to Landlord on an annual
basis Tenant’s certification that all such permits have been renewed with
copies of such renewed permits; and to comply with the orders and regulations
of all governmental authorities with respect to zoning, building, fire, health
and other codes, regulations, ordinances or laws applicable to the Premises.

 

As
used herein, “Hazardous Materials” shall mean and include, but shall not be
limited to, any petroleum product and all hazardous or toxic substances or
wastes including any asbestos-containing materials, waste oils, solvents and
chlorinated oils, polychlorinated biphenyls (PCBs), or substances which are
included under or regulated by any federal, state or local law, rule or regulation
(whether now existing or hereafter enacted or promulgated, as they may be
amended from time to time) pertaining to the environment, contamination or
clean-up (all such laws, rules and regulations being referred to
collectively as the “Environmental Laws”), including, without limitation, the
Comprehensive Environmental Response Compensation and Liability Act of 1980, as
amended, 42 U.S.C.  § 9601 and
regulations adopted pursuant to said Act.

 

6.1.4.                     Rules and Regulations.  To comply with the Rules and Regulations
set forth in Exhibit E and all other reasonable Rules and Regulations
hereafter made by Landlord, of which Tenant has been given notice, for the care
and use of the Building and the Lot and their facilities and approaches, it
being understood that Landlord shall not be liable to Tenant for the failure of
other tenants of the Building to conform to such Rules and Regulations.  Landlord agrees to apply the Rules and
Regulations uniformly to all tenants in the Building.

 

6.1.5.                     Safety Appliances.  To keep the Premises equipped with all safety
appliances required by law or ordinance or any other regulation of any public
authority because of any use made by Tenant and to procure all licenses and
permits so required because of such use and, if requested by Landlord, to do
any work so required because of such use, it being understood that the
foregoing provisions shall not be construed to broaden in any way Tenant’s
Permitted Uses.

 

6.1.6.                     Assignment and Subletting.  Not without the prior written consent of
Landlord to assign, mortgage, pledge, encumber, sell or transfer this Lease, in
whole or in part, to make any sublease, or to permit occupancy of the Premises
or any part thereof by anyone other than Tenant, voluntarily or by operation of
law; as additional rent, to reimburse Landlord promptly for reasonable legal
and other expenses incurred by Landlord in connection with any request by
Tenant for consent to assignment or subletting; no assignment or subletting
shall affect the continuing primary liability of Tenant (which, following
assignment, shall be joint and several with the assignee); no consent to any of
the foregoing in a specific instance shall operate as a waiver in any
subsequent instance.  Landlord’s consent
to any proposed assignment or subletting is required both as to the terms and
conditions thereof, and as to the creditworthiness of the proposed assignee or
subtenant and the consistency of the proposed assignee’s or subtenant’s
business with other uses and tenants in the Building.  In the event that any assignee or subtenant
pays to Tenant any amounts in excess of the Annual Rent and additional rent
then payable

 

16

 

hereunder,
or pro rata portion thereof on a square footage basis for any portion of the
Premises, Tenant shall promptly pay fifty percent (50%) of said excess to
Landlord as and when received by Tenant. 
If Tenant requests Landlord’s consent to assign this Lease or sublet
more than fifty (50%) of the Premises, Landlord shall have the option,
exercisable by written notice to Tenant given within ten (10) days after
receipt of such request, to terminate this Lease as of a date specified in such
notice which shall be not less than thirty (30) or more than sixty (60) days
after the date of such notice.

 

Notwithstanding
the foregoing, Landlord shall not unreasonably withhold its consent to a proposed
assignment or sublease to the specific assignee or subtenant set forth in
Tenant’s notice to Landlord requesting approval to such proposed assignment or
sublease (“Tenant’s Sublease Notice”), provided that (i) Tenant and the
assignee or subtenant set forth in Tenant’s Sublease Notice have executed an
assignment or sublease including terms which do not differ materially from
those set forth in Tenant’s Sublease Notice within three (3) months of the
date of such Notice, (ii) the terms and provisions of such assignment or
subletting shall specifically make applicable to the assignee or sublessee all
of the provisions of this Section 6.1.6 so that Landlord shall have
against the assignee or sublessee all rights with respect to any further
assignment and subletting which are set forth herein; (iii) the character
of the proposed assignee or subtenant is consistent with the character of the
Building as a first-class office building; (iv) the credit of the proposed
assignee or subtenant shall be as good as or better than the credit of the
Tenant as of the execution of this Lease as reasonably demonstrated by
financial information supplied to Landlord with Tenant’s Sublease Notice; (v) Landlord
shall not have been negotiating with the proposed assignee or subtenant, or any
affiliate thereof, for space in the Building within the previous three (3) months;
(vi) no assignment or subletting shall affect the continuing primary
liability of Tenant (which, following assignment shall be joint and several
with the assignee); (vii) no consent to any of the foregoing in a specific
instance shall operate as a waiver in any subsequent instance; (viii) no
consent shall be deemed unreasonably withheld by Landlord to the extent the
granting of consent might cause Landlord to be in default under any mortgage;
and (ix) no assignment shall be binding upon Landlord or any of Landlord’s
mortgagees, unless Tenant shall deliver to Landlord an instrument in recordable
form which contains a covenant of assumption by the assignee running to
Landlord and all persons claiming by, through or under Landlord (an “Assumption
Agreement”), but the failure or refusal of the assignee to execute an
Assumption Agreement shall not release or discharge the assignee from its
liability as tenant hereunder.  In the
event Tenant and the proposed assignee or sublessee have failed to execute an
assignment or sublease within three (3) months of the date of Tenant’s
Sublease Notice, Tenant’s right to assign or sublease shall again be subject to
the provisions of this Section 6.1.6.

 

Notwithstanding
the foregoing, Tenant may assign this Lease to an entity owned or controlled
by, under common ownership or control with or owning or controlling Tenant (in
each case, an “Affiliate”), without Landlord’s consent, but upon thirty (30)
days prior notice, accompanied by information which reasonably demonstrates
that the proposed assignee is an Affiliate, provided such assignee provides an
Assumption Agreement to Landlord.  The
liability of tenant and any assignee to Landlord hereunder shall following
assignment be joint and several.

 

6.1.7.                     Indemnity.  To defend, with counsel reasonably approved
by Landlord, all actions against Landlord, Managing Agent, any partner, member,
trustee, stockholder, officer, director, employee or beneficiary of Landlord or
Managing Agent, holders of mortgages secured by the

 

17

 

Premises
or the Building and Lot and any other party having an interest in the Premises
(“Indemnified Parties”) with respect to, and to pay, protect, indemnify and
save harmless, to the extent permitted by law, all Indemnified Parties from and
against, any and all liabilities, losses damages, costs, expenses (including
reasonable attorneys’ fees and expenses), causes of action, suits, claims,
demands or judgments of any nature arising from or related to (i) injury
to or death of any person, or damage to or loss of property, on the Premises or
connected with the use, condition or occupancy of the Premises unless caused by
the negligence or willful misconduct of Landlord or its servants or agents, (ii) violation
of this Lease, or (iii) any act, fault, omission, or other misconduct of
Tenant or its agents, employees, contractors, licensees, sublessees or invitees
or (iv) the use, generation, storage or disposal of Hazardous Materials by
Tenant or its agents, employees or invitees on the Premises, the Building or
Lot or any portion thereof or any surrounding area, including, without
limitation, any and all liabilities, losses, damages, costs, expenses
(including reasonable attorneys’ fees and expenses), causes of action, suits,
claims, demands or judgments of any nature arising from or related to removal
or other remediation of any Hazardous Materials or precautions required to
protect against the release of Hazardous’ Materials by Tenant or its agents,
employees, contractors, licensees, sublessees or invitees into the environment
to the extent required by any Environmental Laws (as defined below).

 

6.1.8.                     Tenant’s Insurance.  To maintain (a) at all times during the
term of this lease and at Tenant’s expense All Risk Property insurance
including coverage of the full replacement value of Tenant’s improvements,
betterments, furniture, fixtures, equipment and contents.  The insurer used by Tenant hereunder shall
waive rights of subrogation against Landlord for losses payable under such All
Risk Property insurance; (b) at all times during the term of this lease
and at Tenant’s expense a commercial general liability insurance policy
(hereinafter referred to as a “Liability Policy”).  Such Liability Policy shall include Landlord
(and any other party reasonably required by Landlord), as Additional Insured
and be written on an “occurrence basis” including, without limitation, blanket
contractual liability coverage, broad form property damage, and personal injury
coverage protecting Landlord against liability (except for liability resulting
from gross negligence or willful misconduct of Landlord) occasioned by any
occurrence on or about the premises.  Such
Liability Policy shall be maintained in an amount not less than $1,000,000 for
a single occurrence limit and $2,000,000 for an aggregate limit, and, in
addition, $5,000,000 per single occurrence and $5,000,000 per aggregate of
excess or umbrella liability insurance; (c) at all times during the term
of this lease and at Tenant’s expense such other insurance or such additional
amounts of insurance with respect to the leased property as is generally
maintained by persons having similar exposures or properties similarly situated
and as the Landlord shall from time to time reasonably require.  All policies of insurance maintained by
Tenant shall be in a form acceptable to Landlord with an A.M. Best rating
of at least (A-)(VIII); issued by an insurer reasonably acceptable to Landlord
and licensed to do business in The Commonwealth of Massachusetts; and require
at least thirty (30) days written notice of cancellation, non-renewal or
material alteration to Landlord and to Landlord’s mortgagee(s), and those who
are named as additional insureds.  If
requested by Landlord, Tenant shall, upon the Commencement Date, and thereafter
no less than thirty (30) days prior to the expiration date of each such policy,
deliver to Landlord or Landlord’s designated representative insurance
certificates and written evidence satisfactory to Landlord that all premiums
have been paid and all policies are in effect. 
If Tenant fails to secure or maintain any insurance coverage required by
Section A above, or should insurance secured not be approved by Landlord
(which approval shall not be unreasonably withheld), Landlord may, without
obligation, purchase such required insurance coverage at

 

18

 

Tenant’s
expense.  Tenant shall promptly reimburse
Landlord for any monies so expended.  Landlord
shall keep all of Tenant’s employees working in the Premises covered by worker’s
compensation insurance in statutory amounts and to furnish Landlord with
certificates thereof.

 

6.1.9.                     Tenant’s Worker’s Compensation Insurance.  To keep all of
Tenant’s employees working in the Premises covered by worker’s compensation
insurance in statutory amounts and to furnish Landlord with certificates
thereof.

 

6.1.10.               Landlord’s Right of Entry.  To permit Landlord and Landlord’s agents
entry: to examine the Premises at reasonable times and with reasonable notice
except in the event of an emergency, and if Landlord shall so elect, to make
repairs or replacements; to remove, at Tenant’s expense, any changes,
additions, signs, curtains, blinds, shades, awnings, aerials, or the like not
consented to in writing; and to show the Premises to prospective tenants during
the twelve (12) months preceding expiration of the Tern and to prospective
purchasers and mortgagees at all reasonable times.

 

6.1.11.               Loading.  Not to place Tenant’s Property, as defined in
Section 6.1.13, upon the Premises so as to exceed a rate of fifty (50)
pounds of live load per square foot and not to move any safe, vault or other
heavy equipment in, about or out of the Premises except in such manner and at
such times as Landlord shall in each instance approve; Tenant’s business
machines and mechanical equipment which cause vibration or noise that may be
transmitted to the Building structure or to any other leased space in the
Building shall be placed and maintained by Tenant in settings of cork, rubber,
spring, or other types of vibration eliminators sufficient to eliminate such
vibration or noise,

 

6.1.12.               Landlord’s Costs.  In case Landlord shall be made party to any
litigation commenced by or against Tenant or by or against any parties in
possession of the Premises or any part thereof claiming under Tenant, to pay,
as additional rent, all costs including, without implied limitation, reasonable
counsel fees incurred by or imposed upon Landlord in connection with such
litigation except to the extent that Landlord is found to be at fault in such
litigation beyond all rights of appeal, and, as additional rent, also to pay
all such costs and fees incurred by Landlord in connection with the successful
enforcement by Landlord of any obligations of Tenant under this Lease.  Landlord shall also pay all such costs and
fees incurred by Tenant in connection with the successful enforcement by Tenant
of any obligations of Landlord under this Lease.

 

6.1.13.               Tenant’s Property.  All the furnishings, fixtures, equipment,
effects and property of every kind, nature and description of Tenant and of all
persons claiming by, through or under Tenant which, during the continuance of
this Lease or any occupancy of the Premises by Tenant or anyone claiming under
Tenant, may be on the Premises or elsewhere in the Building or on the Lot shall
be at the sole risk and hazard of Tenant, and if the whole or any part thereof
shall be destroyed or damaged by fire, water or otherwise, or by the leakage or
bursting of water pipes, steam pipes, or other pipes, by theft, or from any other
cause, no part of said loss or damage is to be charged to or to be borne by
Landlord unless due to the gross negligence or willful misconduct of Landlord
or its agents or employees.

 

6.1.14.               INTENTIONALLY OMITTED.

 

19

 

6.1.15.               Changes or Additions.  Not to make any changes or additions to the
Premises without Landlord’s prior written consent and only in accordance with Article III
hereto, provided that Tenant shall reimburse Landlord for all reasonable costs
incurred by Landlord in reviewing Tenant’s proposed changes or additions, and
provided further that, in order to protect the functional integrity of the
Building, all changes and additions shall be performed by contractors selected
from a list of approved contractors reasonably prepared by Landlord from time
to time.

 

6.1.16.               Holdover.  To pay to Landlord the greater of 150% of (a) the
then fair market rent as conclusively determined by Landlord or (b) the
total of the Annual Rent and all additional rent then applicable for each month
or portion thereof Tenant shall retain possession of the Premises or any part
thereof after the termination of this Lease, whether by lapse of time or
otherwise, and also to pay all damages sustained by Landlord on account
thereof; the provisions of this subsection shall not operate as a waiver
by Landlord of the right of reentry provided in this Lease.  At the option of Landlord exercised by a
written notice given to Tenant while such holding over continues, such holding
over shall constitute an extension of this Lease for a period of one year.

 

6.1.17.               Security.
 To indemnify, and save Landlord harmless
from any claim for injury to person or damage to property asserted by any
personnel, employee or agent of Tenant which is suffered or occurs in or about
the Premises or in or about the Building or the Lot by reason of the act of any
intruder or any other person in or about the Premises, the Building or the Lot,
except to the extent caused by the negligence or willful misconduct of
Landlord, or its agents, employees or contractors.

 

6.1.18.               Tenant Financial Statements.  Within ninety (90) days of Landlord’s written
request (not more often than annually), Tenant shall provide Landlord with
copies (audited if available) of Tenant’s most recent financial statements.

 

ARTICLE VII.

DAMAGE AND DESTRUCTION; CONDEMNATION

 

7.1.                              FIRE OR OTHER CASUALTY

 

7.1.1.                     Subject to the provisions of Section 7.1.2 hereof, in
the event during the Term hereof the Premises or the Building shall be partially
damaged (as distinguished from “substantially damaged” as such term is
hereinafter defined) by fire, explosion, casualty or any other occurrence
covered or as may be required to be covered, as herein provided, by Landlord’s
insurance or by such casualty plus required demolition, or by action taken to
reduce the impact of any such event, Landlord shall forthwith proceed to repair
such damage and restore the Premises, or so much thereof as was originally
constructed or delivered by Landlord to substantially its condition at the time
of such fire, explosion, casualty or occurrence, provided that Landlord shall
not be obligated to expend for such repair an amount in excess of the insurance
proceeds recovered as a result of such damage and, further provided that Tenant
is not then in default of any of its obligations under this Lease beyond any
applicable cure period.  Landlord shall
not be responsible for any delay which may result from any cause beyond
Landlord’s reasonable control.

 

20

 

7.1.2.                     If, however, (i) the Premises or the Building should be
damaged or destroyed (a) by fire or other casualty (1) to the extent
of twenty-five percent (25%) or more of the cost of replacement, or (2) so
that twenty-five (25%) or more of the principal area contained in the Premises
shall be rendered untenantable, or (b) by any casualty other than those
covered by insurance policies required to be maintained by Landlord under this
Lease (hereinafter “substantially damaged”), or (ii) the Premises shall be
damaged in whole or in part during the last year of the Term, or (iii) there
shall be damage to the Premises of a character as cannot reasonably be expected
to be repaired within five (5) months from the date of casualty, or (iv) such
restoration involves the demolition of or repair of damage to twenty-five
percent (25%) or more of the Premises or the Building, or (v) applicable
law requires the demolition of the Building or forbids the rebuilding of the
damaged portion of the Building, or (vi) such restoration requires repairs
in an amount in excess of the insurance proceeds recovered or recoverable, or (vii) Landlord’s
mortgagee shall require that the insurance proceeds from such damage or
destruction be applied against the principal balance due on any mortgage,
Landlord may, at its option, either terminate this Lease or elect to repair the
Premises and Landlord shall notify Tenant as to its election within ninety (90)
days after such fire or casualty.  If
Landlord elects to terminate this Lease, the Term hereof shall end on the date
specified in the notice (which shall be the end of a calendar month and not
sooner than thirty (30) days after such election was made).  If Landlord does not elect to terminate this
Lease, then Landlord shall promptly commence and diligently pursue the
performance of such repairs set forth in Section 7.13 hereof after
adjustment of insurance claims and Tenant shall perform such repairs in the
Building as set forth in Section 7.1.4 hereof, and the Term shall continue
without interruption and this Lease shall remain in full force and effect.

 

If
Landlord has not elected to terminate this Lease and (a) if there shall be
damage to the Premises of a character as cannot (in the judgment of Landlord’s
engineer) reasonably be expected to be repaired within five (5) months
from the date of casualty, then Tenant may, at its option, terminate this Lease
provided that Tenant’s election shall be made by notice to Landlord within
thirty (30) days of Landlord’s delivery of the estimate of Landlord’s engineer
as to the time period required for restoration, or (b) if Landlord has not
substantially completed repairs to the Premises such that Tenant can reasonably
occupy the Premises for the conduct of its business within five (5) months
from the date of casualty, then Tenant may, at its option, terminate this Lease
provided that Tenant’s election shall be made by notice to Landlord before
Landlord substantially completes such repair, provided, however, that if
Landlord substantially completes such repair within thirty (30) days of Tenant’s
notice, the exercise by Tenant of its option to terminate shall be null and
void and of no force and effect, and the Lease shall continue.

 

7.1.3.                     If Landlord or Tenant does not elect to terminate this Lease
as provided in Section 7.12 hereof and if Tenant is not then in default of
any of its obligations under the Lease beyond any applicable cure period
provided for herein, Landlord shall, reconstruct as much of the Premises as was
originally constructed by Landlord (it being understood by Tenant that Landlord
shall not be responsible for any reconstruction of leasehold improvements,
which reconstruction is the sole responsibility of Tenant) to substantially its
condition at the time of such damage, but Landlord shall not be responsible for
any delays which may result from any cause beyond Landlord’s reasonable
control.

 

21

 

7.1.4.                     If Landlord or Tenant does not elect to terminate this Lease
as provided in Section 7.1.2 hereof, Tenant shall, at its own cost and
expense, repair and restore the Premises in accordance with the provisions of Section 6,1.15
hereof to the extent not required to be repaired by Landlord pursuant to the
provisions of this Section 7.1, including, but not limited to, the
repairing and/or replacement of its merchandise, trade fixtures, furnishings
and equipment in a manner and to at least a condition equal to that prior to
its damage or destruction.  Tenant agrees
to commence the performance of its work when notified by Landlord that the work
to be performed by Tenant can, in accordance with good construction practices,
then be commenced and Tenant shall complete such work promptly.

 

7.1.5.                     All proceeds payable from Landlord’s insurance policies with
respect to the Premises shall belong to and shall be payable to Landlord.  If Landlord does not elect to terminate this
Lease as provided in Section 7.1.2 hereof, Landlord shall disburse and
apply so much of any insurance recovery as shall be necessary against the cost
to Landlord of restoration and rebuilding of Landlord’s work referred to in Section 7.1.3
hereof, subject to the prior rights of any lessor under a ground or underlying
lease covering the Building and/or the holder of any mortgage liens against the
Building.

 

7.1.6.                     In the event that the Premises or the Building suffers a
casualty, the Annual Rent and additional rent shall be reasonably and equitably
abated or reduced proportionately during any period in which, by reason of such
damage or destruction, there is substantial interference with the operation of
the business of Tenant in the Premises, having regard to the extent to which
Tenant may be required to discontinue its business in the Premises, and such
abatement or reduction shall continue for the period commencing with such
destruction or damage and ending with the completion by Landlord of such work
of repair and/or reconstruction as Landlord is obligated to do.

 

7.2.                              EMINENT DOMAIN

 

If,
after the execution and before termination of this Lease, the entire premises
shall be taken by eminent domain or destroyed by the action of any public or
quasi-public authority, or in the event of conveyance in lieu thereof, the Term
shall cease as of the day possession shall be taken by such authority, and
Tenant shall pay rent up to that date with a pro-rata refund by Landlord of
such rent and additional rent as shall have been paid in advance for a period
subsequent to the date of the taking of possession.

 

If
less than twenty-five percent (25%) of the Premises shall be so taken or
conveyed, this Lease shall cease only with respect to the parts so taken or
conveyed, as of the day possession shall be taken, and Tenant shall pay rent up
to that day, with an appropriate refund by Landlord of such rent as may have
been paid in advance for a period subsequent to the date of the taking of
possession, and thereafter the Annual Rent shall be equitably adjusted.  Pending agreement of such rental adjustment,
Tenant agrees to pay to Landlord the Annual Rent and additional rent in effect
immediately prior to the taking by eminent domain.  Landlord shall at its expense make all necessary
repairs or alterations so as to constitute the remaining premises and Building
a complete architectural unit within five (5) months after the taking.

 

22

 

If
more than twenty-five percent (25%) of the Premises shall be so taken or
conveyed, then at the Tenant’s option, (i) the Lease shall terminate, or (ii) the
Term shall cease only as respects the part so taken or conveyed, from the day
possession shall be taken, and Tenant shall pay rent to that date with an
appropriate refund by Landlord of such rent as may have been paid in advance
for a period subsequent to the date of the taking of possession, but Landlord
shall have the right to terminate this Lease upon notice to Tenant in writing
within thirty (30) days after such taking of possession.  If neither Landlord nor Tenant does not elect
to terminate the Lease, all of the terms herein provided shall continue in
effect except that the Annual Rent shall be equitably adjusted, and Landlord
shall make all necessary repairs or alterations so as to constitute the
remaining premises and Building a complete architectural unit within nine (9) months
after the taking.

 

If
access to the Premises is materially and adversely affected by such taking or
Tenant’s parking rights are diminished by more than twenty-five percent (25%),
then at the Tenant’s option, the Lease shall terminate.

 

All
compensation awarded for any such taking or conveyance, whether for the whole
or a part of the Premises, shall be the property of Landlord, whether such
damages shall be awarded as compensation for diminution in the value of the
leasehold or of the fee of or underlying leasehold interest in the Premises,
and Tenant hereby assigns to Landlord all of Tenant’s right, title and interest
in and to any and all such compensation; provided, however, that Tenant shall
be entitled to seek a separate award for Tenant’s stock, trade fixtures and
relocation expense.

 

In
the event of any taking of the Premises or any part thereof for temporary use
of 180 days or less, this Lease shall be and remain unaffected thereby except
that the rent shall be equitably reduced. 
For temporary takings of more than 180 days length the above provisions
shall apply.

 

ARTICLE VIII.

RIGHTS OF MORTGAGEE

 

8.1.                              PRIORITY OF LEASE

 

This
Lease is and shall continue to be subject and subordinate to any presently
existing mortgage or deed of trust of record covering the Lot or Building or
both (the “mortgaged premises”).  The
holder of any such presently existing mortgage or deed of trust shall have the
election to subordinate the same to the rights and interests of Tenant under
this Lease exercisable by filing with the appropriate recording office a notice
of such election, whereupon the Tenant’s rights and interests hereunder shall
have priority over such mortgage or deed of trust.

 

Unless
the option provided for in the next following sentence shall be exercised, this
Lease shall be superior to and shall not be subordinate to, any mortgage, deed
of trust or other voluntary lien hereafter placed on the mortgaged premises.  The holder of any such mortgage, deed of
trust or other voluntary lien shall have the option to subordinate this Lease
to the same, provided that such holder enters into an agreement with Tenant by
the terms of which the holder will agree to recognize the rights of Tenant
under this Lease and to accept Tenant as tenant of the Premises under the terms
and conditions of this Lease in the event of acquisition of title by such
holder through foreclosure proceedings or otherwise and Tenant will agree to
recognize the holder of

 

23

 

such mortgage as Landlord in such event,
which agreement shall be made to expressly bind and inure to the benefit of the
successors and assigns of Tenant and of the holder and upon anyone purchasing
the mortgaged premises at any foreclosure sale. 
Any such mortgage to which this Lease shall be subordinated may contain
such terms, provisions and conditions as the holder deems commercially
reasonable.

 

8.2.                              RIGHTS OF MORTGAGE HOLDERS; LIMITATION OF MORTGAGEE’S
LIABILITY.

 

The
word “mortgage” as used herein includes mortgages, deeds of trust or other
similar instruments evidencing other voluntary liens or encumbrances, and
modifications, consolidations, extensions, renewals, replacements and
substitutes thereof.  The word “holder”
shall mean a mortgagee, and any subsequent holder or holders of a mortgage.  Until the holder of a mortgage shall enter
and take possession of the Premises for the purpose of foreclosure, such holder
shall have only such rights of Landlord as are necessary to preserve the
integrity of this Lease as security.  Upon
entry and taking possession of the Premises for the purpose of foreclosure,
such holder shall have all the rights of Landlord.  Notwithstanding any other provision of this
Lease to the contrary, including without limitation Section 10.4, no such
holder of a mortgage shall be liable, either as mortgagee or as assignee, to
perform, or be liable in damages for failure to perform any of the obligations
of Landlord unless and until such holder shall take title to or enter and take
possession of the Premises for the purpose of foreclosure, and such holder
shall not in any event be liable to perform, or for failure to perform the
obligations of Landlord under Section 3.2 with respect to periods
occurring prior to the time it takes title to or possession of the Premises.  Upon entry for the purpose of foreclosure or
taking title, such holder shall be liable to perform all of the obligations of
Landlord (except for the obligations under Section 32), subject to and
with the benefit of the provisions of Section 10.4, provided that a
discontinuance of any foreclosure proceeding shall be deemed a conveyance under
said provisions to the owner of the equity of the Premises.

 

8.3.                              MORTGAGEE’S ELECTION

 

Notwithstanding
any other provision to the contrary contained in this Lease, if prior to
substantial completion of Landlord’s obligations under Article Ill, any
holder of a first mortgage on the mortgaged premises enters and takes
possession thereof for the purpose of foreclosing the mortgage, such holder may
elect, by written notice given to Tenant and Landlord at any time within ninety
(90) days after such entry and taking of possession, not to perform Landlord’s
obligations under Article III, and in such event such holder and all
persons claiming under it shall be relieved of all obligations to perform, and
all liability for failure to perform, said Landlord’s obligations under Article III,
and Tenant may terminate this Lease and all its obligations hereunder by
written notice to Landlord and such holder given within thirty (30) days after
the day on which such holder shall have given its notice as aforesaid.

 

8.4.                              NO PREPAYMENT OR MODIFICATION, ETC.

 

Tenant
shall not pay Annual Rent, additional rent, or any other charge more than ten (10) days
prior to the due date thereof.  No
prepayment of Annual Rent, additional rent or other charge, no assignment of
this Lease and no agreement to modify so as to reduce the rent, change the
Term,

 

24

 

or otherwise materially change the rights of
Landlord under this Lease, or to relieve Tenant of any obligations or liability
under this Lease, shall be valid unless consented to in writing by Landlord’s
mortgagees of record, if any.  Notwithstanding
the foregoing, no such consent shall be required in connection with the
exercise by Tenant of any of its rights set forth in Sections 2.3 or 2.4
hereof.

 

8.5.                              NO RELEASE OR TERMINATION

 

Except
as otherwise provided in Section 2.4, no act or failure to act on the part
of Landlord which would entitle Tenant under the terms of this Lease, or by
law, to be relieved of Tenant’s obligations hereunder or to terminate this
Lease, shall result in a release or termination of such obligations or a
termination of this Lease unless (i) Tenant shall have first given written
notice of Landlord’s act or failure to act to Landlord’s mortgagees of record,
if any, specifying the act or failure to act on the part of Landlord which
could or would give basis to Tenant’s rights and (ii) such mortgagees,
after receipt of such notice, have failed or refused to correct or cure the
condition complained of within a reasonable time thereafter, but nothing
contained in this Section 8.5 shall be deemed to impose any obligation on
any such mortgagee to correct or cure any such condition.  “Reasonable time” as used above means and
includes a reasonable time to obtain possession of the mortgaged premises, if
the mortgagee elects to do so, and a reasonable time to correct or cure the
condition if such condition is determined to exist.

 

8.6.                              CONTINUING OFFER

 

The
covenants and agreements contained in this Lease with respect to the rights,
powers and benefits of a mortgagee (particularly, without limitation thereby,
the covenants and agreements contained in this Article VIII) constitute a
continuing offer to any person, corporation or other entity, which by accepting
or requiring an assignment of this Lease or by entry or foreclosure assumes the
obligations herein set forth with respect to such mortgagee; such mortgagee is
hereby constituted a party to this Lease as an obligee hereunder to the same
extent as though its name were written hereon as such; and such mortgagee shall
be entitled to enforce such provisions in its own name.  Tenant agrees on request of Landlord to
execute and deliver from time to time any commercially reasonable agreement
which may reasonably be deemed necessary to implement the provisions of this Article VIII.

 

ARTICLE IX.

DEFAULT

 

9.1.                              EVENTS OF DEFAULT

 

If
any default by Tenant continues after notice, in case of Annual Rent,
additional rent or any other monetary obligation to Landlord for more than ten (10) days
(provided that no notice shall thereafter be required if Tenant defaults in any
monetary obligation twice in any twelve (12) month period), or if Tenant fails
to provide an estoppel certificate in accordance with Section 10.9 hereof
following ten (10) days written notice pursuant to this Section 9.1,
or if Tenant fails to execute a New Lease as provided in Section 2.3
hereof, or if any default by Tenant continues in any other case for more than
thirty (30) days after notice and such additional time, if any, as is
reasonably necessary to cure the default if the default is of such a nature
that it cannot reasonably

 

25

 

be
cured in thirty (30) days and Tenant promptly commences to cure such default
and diligently pursues such care without interruption to completion; or if
Tenant becomes insolvent, fails to pay its debts as they fall due, files a
petition under any chapter of the U.S.  Bankruptcy
Code, 11 U.S.C. 101 et seq., as it may be amended (or any similar petition
under any insolvency law of any jurisdiction), or if such petition is filed
against Tenant; or if Tenant proposes any dissolution, liquidation,
composition, financial reorganization or recapitalization with creditors, makes
an assignment or trust mortgage for benefit of creditors, or if a receiver,
trustee, custodian or similar agent is appointed or takes possession with respect
to any property of Tenant; or if the leasehold hereby created is taken on
execution or other process of law in any action against Tenant; then, and in
any such case, Landlord and the agents and servants of Landlord may, in
addition to and not in derogation of any remedies for any preceding breach of
covenant, immediately or at any time thereafter while such default continues
and without farther notice, at Landlord’s election, do any one or more of the
following: (1) give Tenant written notice stating that the Lease is
terminated, effective upon the giving of such notice or upon a date stated in
such notice, as Landlord may elect, in which event the Lease shall be
irrevocably extinguished and terminated as stated in such notice without any
further action, or (2) with or without process of law, in a lawful manner
enter and repossess the Premises as of Landlord’s former estate, and expel
Tenant and those claiming through or under Tenant, and remove its and their
effects, without being guilty of trespass, in which event the Lease shall be
irrevocably extinguished and terminated at the time of such entry, or (3) pursue
any other rights or remedies permitted by law. 
Any such termination of the Lease shall be without prejudice to any
remedies which might otherwise be used for arrears of rent or prior breach of
covenant, and in the event of such termination Tenant shall remain liable under
this Lease as hereinafter provided.  Tenant
hereby waives all statutory rights (including, without limitation, rights of
redemption, if any) to the extent such rights may be lawfully waived, and
Landlord, without notice to Tenant, may store Tenant’s effects and those of any
person claiming through or under Tenant at the expense and risk of Tenant and,
if Landlord so elects, may sell such effects at public auction or private sale
and apply the net proceeds to the payment of all sums due to Landlord from
Tenant, if any, and pay over the balance, if any, to Tenant.

 

9.2.                              TENANT’S OBLIGATIONS AFTER TERMINATION

 

In
the event that this Lease is terminated under any of the provisions contained
in Section 9.1 or shall be otherwise terminated for breach of any
obligation of Tenant, Tenant covenants to pay forthwith to Landlord, as
compensation, (i) the excess of the total rent reserved for the residue of
the Term over the rental value of the Premises for said residue of the Term and
(ii) the unamortized portion of the actual out-of-pocket costs and
expenses incurred by Landlord in completing Landlord’s Work and fees and
commissions paid to the Broker, amortized on a straight-line reduction basis
from 100% to 0% over the Term of the Lease set forth in Section 1.1 hereof.
 In calculating the rent reserved, there
shall be included, in addition to the Annual Rent and all additional rent, the
value of all other consideration agreed to be paid or performed by Tenant for
said residue.  Tenant further covenants
as an additional and cumulative obligation after any such ending to pay
punctually to Landlord all the sums and perform all the obligations which
Tenant covenants in this Lease to pay and to perform in the same manner and to
the same extent and at the same time as if this Lease had not been terminated.  In calculating the amounts to be paid by
Tenant under the next foregoing covenant, Tenant shall be credited with any
amount paid to Landlord as compensation as provided in the first sentence of
this Section 9.2 and

 

26

 

also with the net proceeds of any rents
obtained by Landlord by reletting the Premises, after deducting all Landlord’s
expenses in connection with such reletting, including, without implied
limitation, all repossession costs, brokerage commissions, fees for legal
services and expenses of preparing the Premises for such reletting, it being
agreed by Tenant that Landlord may (i) relet the Premises or any part or
parts thereof for a term or terms which may at Landlord’s option be equal to or
less than or exceed the period which would otherwise have constituted the
balance of the Term and may grant such concessions and free rent as Landlord in
its sole judgment considers advisable or necessary to relet the same and (ii) make
such alterations, repairs and decorations in the Premises as Landlord in its
sole judgment considers advisable or necessary to relet the same, and no action
of Landlord in accordance with the foregoing or failure to relet or to collect
rent under reletting shall operate or be construed to release or reduce Tenant’s
liability as aforesaid.

 

So
long as at least twelve (12) months of the Term remain unexpired at the time of
such termination in lieu of any other damages or indemnity and in lieu of full
recovery by Landlord of all sums payable under all the foregoing provisions of
this Section 9.2, Landlord may by written notice to Tenant, at any time
after this Lease is terminated under any of the provisions contained in Section 9.1,
or is otherwise terminated for breach of any obligation of Tenant and before
such full recovery, elect to recover and Tenant shall thereupon pay, as liquidated
damages, an amount equal to the aggregate of the Annual Rent and additional
rent accrued under Article IV in the 12 months ended next prior to such
termination plus the amount of Annual.  Rent
and additional rent of any kind accrued and unpaid at the time of termination
and less the amount of any recovery by Landlord under the foregoing provisions
of this Section 9.2 up to the time of payment of such liquidated damages.

 

Nothing
contained in this Lease shall, however, limit or prejudice the right of
Landlord to prove and obtain in proceedings for bankruptcy or insolvency by
reason of the termination of this Lease, an amount equal to the maximum allowed
by any statute or rule of law in effect at the time when, and governing
the proceedings in which, the damages are to be proved, whether or not the
amount be greater, equal to, or less than the amount of the loss or damages
referred to above.

 

ARTICLE X.

MISCELLANEOUS

 

10.1.                        NOTICE OF LEASE

 

Upon
request of either party, both parties shall execute and deliver, after the Term
begins, a notice of this lease in form appropriate for recording or
registration, and if this Lease is terminated before the Term expires, an
instrument in such form, acknowledging the date of termination.

 

10.2.                        NOTICES FROM ONE PARTY TO THE OTHER

 

All
notices required or permitted hereunder shall be in writing and addressed, if
to the Tenant, at Tenant’s Address or such other address as Tenant shall have
last designated by notice in writing to Landlord and, if to Landlord, at Landlord’s
Address or such other address as Landlord shall

 

27

 

have last designated by notice in writing to
Tenant.  Any notice shall have been
deemed duly given (a) if mailed to such address postage prepaid, registered
or certified mail, return receipt requested, when deposited with the U.S.  Postal Service, (b) if sent to such
address by nationally recognized overnight courier service providing receipts
for delivery, when deposited with such courier service or (c) if delivered
to such address by hand, when so delivered.

 

10.3.                        BIND AND INURE

 

The
obligations of this Lease shall run with the land, and this Lease shall be
binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns, except that the Landlord named herein and
each successive owner of the Premises shall be liable only for the obligations
accruing during the period of its ownership. 
The obligations of Landlord shall be binding upon the assets of Landlord
which comprise the Building and the Lot but not upon other assets of Landlord.  No individual partner, member, trustee,
stockholder, officer, director, employee or beneficiary of Landlord shall be
personally liable under this Lease and Tenant shall look solely to Landlord’s
interest in the Building and the Lot in pursuit of its remedies upon an event
of default hereunder, and the general assets of the individual partners,
trustees, stockholders, officers, employees or beneficiaries of Landlord shall
not be subject to levy, execution or other enforcement procedure for the
satisfaction of the remedies of Tenant.

 

10.4.                        NO SURRENDER

 

The
delivery of keys to any employee of Landlord or to Landlord’s agent or any
employee thereof shall not operate as a termination of this Lease or a
surrender of the Premises.

 

10.5.                        NO WAIVER, ETC.

 

The
failure of Landlord to seek redress for violation of, or to insist upon the
strict performance of any covenant or condition of this Lease or any of the Rules and
Regulations referred to in Section 6.1.4, whether heretofore or hereafter
adopted by Landlord, shall not be deemed a waiver of such violation nor prevent
a subsequent act, which would have originally constituted a violation, from
having all the force and effect of an original violation, nor shall the failure
of Landlord to enforce any of said Rules and Regulations against any other
tenant in the Building be deemed a waiver of any such Rules or Regulations.  The receipt by Landlord of Annual Rent or
additional rent with knowledge of the breach of any covenant of this Lease
shall not be deemed a waiver of such breach by Landlord, unless such waiver be
in writing and signed by Landlord.  No
consent or waiver, express or implied, by Landlord to or of any breach of any
agreement or duty shall be construed as a waiver or consent to or of any other
breach of the same or any other agreement or duty.

 

10.6.                        NO ACCORD AND SATISFACTION

 

No
acceptance by Landlord of a lesser sum than the Annual Rent and additional rent
then due shall be deemed to be other than on account of the earliest
installment of such rent due, nor shall any endorsement or statement on any
check or any letter accompanying any check or payment as rent be deemed as
accord and satisfaction, and Landlord may accept such check or payment without
prejudice to Landlord’s right to recover the balance of such installment or
pursue any other remedy in this Lease provided.

 

28

 

10.7.                        CUMULATIVE REMEDIES

 

The
specific remedies to which Landlord may resort under the terms of this Lease
are cumulative and are not intended to be exclusive of any other remedies or
means of redress to which it may be lawfully entitled in case of any breach or
threatened breach by Tenant of any provisions of this Lease.  In addition to the other remedies provided in
this Lease, Landlord and Tenant shall be entitled to the restraint by
injunction of the violation or attempted or threatened violation of any of the
covenants, conditions or provisions of this Lease or to a decree compelling
specific performance of any such covenants, conditions or provisions.

 

10.8.                        LANDLORD’S RIGHT TO CURE

 

If
Tenant shall at any time default (beyond applicable notice and cure periods
except in an emergency situation) in the performance of any obligation under
this Lease, Landlord shall have the right, but shall not be obligated, to enter
upon the Premises and to perform such obligation, notwithstanding the fact that
no specific provision for such substituted performance by Landlord is made in
this Lease with respect to such default. 
In performing such obligation, Landlord may make any payment of money or
perform any other act.  All sums so paid
by Landlord (together with interest at the rate of 4% per annum in excess of
the then average prime commercial rate of interest being charged by the three
largest national banks in Boston, Massachusetts) and all necessary incidental
costs and expenses in connection with the performance of any such act by
Landlord, shall be deemed to be additional rent under this Lease and shall be
payable to Landlord immediately on demand. 
Landlord may exercise the foregoing rights without waiving any other of
its rights or releasing Tenant from any of its obligations under this Lease,

 

10.9.                        ESTOPPEL CERTIFICATE

 

Tenant
agrees, from time to time, upon not less than 15 days’ prior written request by
Landlord, to execute, acknowledge and deliver to Landlord a statement in
writing certifying that this Lease is unmodified and in full force and effect;
that Tenant has no defenses, offsets or counterclaims against its obligations
to pay the Annual Rent and additional rent and to perform its other covenants
under this Lease; that there are no uncured defaults of Landlord or Tenant
under this Lease (or, if there have been modifications, that this Lease is in
full force and effect as modified and stating the modifications, and, if there
are any defenses, offsets, counterclaims, or defaults, setting them forth in
reasonable detail); and the dates to which the Annual Rent, additional rent and
other charges have been paid.  Any such
statement delivered pursuant to this Section 10.10 shall be in a form
reasonably acceptable to and may be relied upon by any prospective purchaser or
mortgagee of premises which include the Premises or any prospective assignee of
any such mortgagee.

 

10.10.                  WAIVER
OF SUBROGATION

 

Any
insurance carried by either party with respect to the Premises and property
therein or occurrences thereon shall include a clause or endorsement denying to
the insurer rights of subrogation against the other party to the extent rights
have been waived by the insured prior to occurrences of injury or loss.  Each party, notwithstanding any provisions of
this Lease to the contrary, hereby waives any rights of recovery against the
other for injury or loss due to hazards

 

29

 

covered
by insurance containing such clause or endorsement to the extent of the
indemnification received thereunder.

 

10.11.                  ACTS
OF GOD

 

In
any case where either party hereto is required to do any act, delays caused by
or resulting from Acts of God, war, civil commotion, fire, flood or other
casualty, labor difficulties, shortages of labor, materials or equipment,
government regulations, unusually severe weather, or other causes beyond such
party’s reasonable control shall not be counted in determining the time during
which work shall be completed, whether such time be designated by a fixed date,
a fixed time or a “reasonable time,” and such time shall be deemed to be
extended by the period of such delay.

 

10.12.                  BROKERAGE

 

Tenant
and Landlord represent and warrant to each other that they dealt with no
brokers in connection with this transaction other than the Broker and agree to
defend, with counsel approved by the other, indemnify and save the other
harmless from and against any and all cost, expense or liability for any
compensation, commissions or charges claimed by a broker or agent, other than
the Broker, claiming to have dealt with the indemnifying party in connection
with this Lease.  Landlord hereby agrees
to pay the brokerage fees to the Broker in connection with the execution and
delivery of this Lease.

 

10.13.                  SUBMISSION
NOT AN OFFER

 

The
submission of a draft of this Lease or a summary of some or all of its
provisions does not constitute an offer to lease or demise the Premises, it
being understood and agreed that neither Landlord nor Tenant shall be legally
bound with respect to the leasing of the Premises unless and until this Lease
has been executed by both Landlord and Tenant and a fully executed copy has
been delivered to each of them.

 

10.14.                  APPLICABLE
LAW AND CONSTRUCTION

 

This
Lease shall be governed by and construed in accordance with the laws of the
Commonwealth of Massachusetts (without reference to principles of conflicts of
laws).  If any term, covenant, condition
or provision of this Lease or the application thereof to any person or
circumstances shall be declared invalid or unenforceable by the final ruling of
a court of competent jurisdiction having final review, the remaining terms,
covenants, conditions and provisions of this Lease and their application to
persons or circumstances shall not be affected thereby and shall continue to be
enforced and recognized as valid agreements of the parties, and in the place of
such invalid or unenforceable provision, there shall be substituted a like, but
valid and enforceable provision which comports to the findings of the aforesaid
court and most nearly accomplishes the original intention of the parties.

 

There
are no oral or written agreements between Landlord and Tenant affecting this
Lease.  This Lease may be amended, and
the provisions hereof may be waived or modified, only by instruments in writing
executed by Landlord and Tenant.

 

30

 

The
titles of the several Articles and Sections contained herein are for
convenience only and shall not be considered in construing this Lease.

 

Unless
repugnant to the context, the words “Landlord” and “Tennant” appearing in this
Lease shall be construed to mean those named above and their respective heirs,
executors, administrators, successors and assigns, and those claiming through
or under them respectively.  If there be
more than one tenant, the obligations imposed by this Lease upon Tenant shall
be joint and several.

 

10.15.                  AUTHORITY
OF TIENANT

 

Tenant
represents and warrants to Landlord (which representations and warranties shall
survive the delivery of this Lease) that: (a) Tenant (i) is duly
organized, validly existing and in.  good
standing under the laws of its state of incorporation, (ii) has the
corporate power and authority to carry on businesses now being conducted and is
qualified to do business in every jurisdiction where such qualification is
necessary and (iii) has the corporate power to execute and deliver and
perform its obligations under this Lease and (b) the execution, delivery
and performance by Tenant of its obligations under this Lease have been duly
authorized by all requisite corporate action and will not violate any provision
of law, any order of any court or other agency of government, the corporate
charter or by-laws of the Tenant or any indenture, agreement or other
instrument to which it is a party or by which it is bound.

 

ARTICLE XI.

SECURITY DEPOSIT

 

Simultaneously
with Tenant’s delivery of the executed Lease to Landlord, Tenant will deliver
to Landlord the Security Deposit in cash; provided, however, that no later than
three (3) months after the Term Commencement Date, Tenant shall deliver to
Landlord a letter of credit in the amount of the Security Deposit and in
conformity with the provisions set forth below (the “Letter of Credit”),
whereupon the cash held by Landlord shall be returned to Tenant.  The Security Deposit shall be held by
Landlord, as security, without interest, for and during the Term, and which
Security Deposit shall be returned to Tenant at the termination of this Lease,
provided there exists no default of Tenant under the provisions of this Lease.  The Letter of Credit shall be an irrevocable
and unconditional standby documentary letter of credit in the amount of the
Security Deposit issued by a institution satisfactory to Landlord in its
reasonable discretion, naming Landlord, its successors and assigns as the beneficiary,
assignable to a successor or assignee at no cost to Landlord or such successor
or assignee, expiring no less than one (1) year from the Term Commencement
Date and renewing automatically each year (or at the end of the applicable term
thereof) unless the issuing bank has given Landlord notice at least forty-five
(45) days prior to the expiration that the same will not be renewed, and
otherwise in form and substance reasonably acceptable to Landlord.  Landlord shall be permitted to draw upon the
Letter of Credit in the event of (i) default by Tenant in any of its
obligations hereunder after the giving of any required notice and the
expiration of any applicable cure period, in which event Landlord may draw upon
all or a portion of the Letter of Credit and apply the proceeds as described
below, or (ii) failure by Tenant to provide to Landlord a replacement or
substitute Letter of Credit in the amount of Security Deposit, and otherwise
subject to the conditions set forth above, no less than thirty (30) days prior
to the expiration date of the Letter of Credit then

 

31

 

held
by Landlord, in which event Landlord may draw upon all of the Letter of Credit
and use the same to satisfy any unfulfilled obligation of Tenant under the
Lease, without any obligation to segregate such funds or to account for them to
Tenant, Tenant acknowledging that in such circumstance it shall have no right
whatsoever to such proceeds.  Such
failure to provide a replacement or substitute Letter of Credit to Landlord no
less than thirty (30) days prior to the expiration date of the Letter of Credit
then held by Landlord shall be an event of default hereunder.

 

The
Security Deposit is being delivered by Tenant to Landlord as security for the
faithful performance and observance by Tenant of the terms, provisions and
conditions of this Lease.  It is
understood and agreed that if any default by Tenant occurs hereunder and
continues after the giving of any required notice and the expiration of any
applicable cure period, Landlord may use, apply or retain the whole or any part
of the Security Deposit so deposited to the extent required to cure such
default or for payment of any sum as to which Tenant is in such default, if
any, or for any sum which Landlord may expend or may be required to expend by
reason of any such default by Tenant hereunder, if any.  It is agreed that Landlord shall always have
the right to apply the Security Deposit or any part thereof, as aforesaid,
without prejudice to any other remedy or remedies which Landlord may have, or
Landlord may pursue any other such remedy or remedies in lieu of applying the
Security Deposit.  If all or any part of
the Security Deposit is applied to an obligation of Tenant hereunder, Tenant
shall immediately upon request by Landlord restore the Security Deposit to its
original amount.  Tenant shall not have
the right to call upon Landlord to apply all or any part of the Security
Deposit to cure any default or fulfill any obligation of Tenant, but such use
shall be solely in the discretion of Landlord. 
Upon any conveyance by Landlord of its interest under this Lease, the
Security Deposit may be delivered by Landlord to Landlord’s grantee or
transferee.  Upon any delivery, Tenant
hereby releases Landlord herein named of any and all liability with respect to
such Security Deposit and agrees to look solely to such grantee or transferee.  It is further understood that this provision
shall also apply to subsequent grantees and transferees.

 

32

 

EXECUTED
as a sealed instrument in two or more counterparts on the day and year first
above written.

 

	
   

  	
  LANDLORD:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CAMBRIDGEPARK 125 REALTY

  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Edward Hennessey

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Edward Hennessey

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
  Hereunto duly authorized

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TENANT:

  
	
   

  	
   

  	
   

  
	
   

  	
  LIGHTSPACE CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ken Lang

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Ken Lang

  
	
   

  	
   

  	
  Title:

  	
  CEO, Co-Founder

  
	
   

  	
   

  	
  Hereunto duly authorized

  
						

 

 

EXHIBIT A

Description of Lot

 

125
Cambridge Park Drive

 

A
certain parcel of land in Cambridge, Middlesex, Massachusetts as shown on a
plan entitled “Plan of Land Cambridge, Massachusetts” dated December 19,
1981, prepared by Harry A.  Feldman, Inc.
and recorded with the Middlesex South Registry of Deeds as Plan No. 560 of
1983 more particularly bounded and described as follows:

 

Beginning
at a point on the northerly sideline of Cambridge Park Drive, said point is the
southwesterly corner of the land of the Genetics Institute and is located N76
degrees 30’ -41”W a distance of 16.53 feet from a point of curvature on the
northerly sideline of said Cambridge Park Drive;

 

Thence
running N76 degrees- 30’-41”W along the northerly sideline of Cambridge Park
Drive a distance of 300.00 feet;

 

Thence
turning and running N13 degrees- 29’-19”E a distance of 303.49 feet;

 

Thence
turning and running easterly by a curved line to the left of radius 2234.49
feet a distance of 23.42 feet;

 

Thence
turning and running N13 degrees 29’-l 9”E a distance of 13.86 feet;

 

Thence
turning and running westerly by a curved line to the right of radius 2904.43
feet a distance of 23.42 feet;

 

Thence
turning and running N13 degrees 29’-19”E a distance of 41.44 feet;

 

Thence
turning and running northeasterly by a curved line to the left of radius
2864.93 feet a distance of 399.78 feet;

 

Thence
turning and running S13 degrees 29’-19”W a distance of 4334 feet;

 

Thence
turning and running southwesterly by a curved line to the right of a radius
2904.43 a distance of 78.34 feet to a concrete bound;

 

Thence
turning and tanning S13 degrees- 29’-19”W a distance of 429.91 feet to the
point of beginning;

 

Containing
an area of 126,595 square feet for 2.906 acres.

 

 

EXHIBIT B

 

[Plan Showing Premises]

 

 

EXHIBIT C

 

[CUBICLE REMOVAL PLAN]

 

 

EXHIBIT D

 

LANDLORD’S SERVICES

 

I.                                         CLEANING

 

A.                                   General

 

1.                                       All cleaning
work will be performed between 8 a.m. 
and 12 midnight, Monday through Friday, unless otherwise necessary for
stripping, waxing, etc.

 

2.                                       Abnormal waste
removal (e.g., computer installation paper, bulk packaging, wood or cardboard
crates, refuse from cafeteria operation, etc.) shall be Tenant’s
responsibility, which Tenant may satisfy by placing such waste in the dumpsters
located on the Lot.

 

B.                                     Daily
Operations (5 times per week)

 

1.                                       Tenant Areas

 

a.                                       Empty and clean
all waste receptacles; wash receptacles as necessary.

 

b.                                      Vacuum all rugs
and carpeted areas.

 

c.                                       Empty,
damp-wipe and dry all ashtrays.

 

2.                                       Lavatories

 

a.                                       Sweep and wash
floors with disinfectant.

 

b.                                      Wash both sides
of toilet seats with disinfectant,

 

c.                                       Wash all
mirrors, basins, bowls, urinals.

 

d.                                      Spot clean
toilet partitions.

 

e.                                       Empty and
disinfect sanitary napkin disposal receptacles.

 

f.                                         Refill toilet
tissue, towel, soap, and sanitary napkin dispensers.

 

3.                                       Public Areas

 

a.                                       Wipe down
entrance doors and clean glass (interior and exterior).

 

b.                                      Vacuum elevator
carpets and wipe down doors and walls.

 

c.                                       Clean water
coolers.

 

 

C.                                     Operations as
Needed (but not less than every other day)

 

1.                                       Tenant and
Public Areas

 

a.                                       Buff all resilient
floor areas.

 

D.                                    Weekly
Operations

 

1.                                       Tenant Areas,
Lavatories, Public Areas

 

a.                                       Hand-dust and
wipe clean all horizontal surfaces with treated cloths to include furniture,
office equipment, window sills, door ledges, chair rails, baseboards, convector
tops, etc., within normal reach.

 

b.                                      Remove finger
marks from private entrance doors, light switches, and doorways.

 

c.                                       Sweep a1l
stairways.

 

E.                                      Monthly
Operations

 

1.                                       Tenant and
Public Areas

 

a.                                       Thoroughly
vacuum seat cushions on chairs, sofas, etc.

 

b.                                      Vacuum and dust
grillwork.

 

2.                                       Lavatories

 

a.                                       Wash down
interior walls and toilet partitions.

 

F.                                      As Required and
Weather Permitting

 

1.                                       Entire Building

 

a.                                       Clean inside of
all windows.

 

b.                                      Clean outside
of all windows.

 

G.                                     Yearly

 

1.                                       Public Areas

 

a.                                       Strip and wax
all resilient tile floor areas.

 

 

II.                                     HEATING,
VENTILATING, AND AIR CONDITIONING

 

1.                                       Heating,
ventilating, and air conditioning as required to provide reasonably comfortable
temperatures for normal business day occupancy (excepting holidays); Monday
through Friday from 8:00 a.m. to 6:00 p.m. and Saturday from 8:00 a.m.
to 1:00 p.m.

 

2.                                       Maintenance of
any additional or special air conditioning equipment that Tenant requests
Landlord in writing to install in the Building and any associated operating
cost will be at Tenant’s expense, which is currently estimated at $55 per hour.

 

III.                                 WATER

 

Hot
water for lavatory purposes and cold water for drinking, lavatory and toilet
purposes, and cold water for Tenant’s kitchen and Tenant’s hot water heater (Tenant
is to supply hot water heater).

 

IV.                                 ELEVATORS (if
Building is Elevatored)

 

Elevators
for the use of all tenants and the general public for access to and from all
floors of the Building.  Programming of
elevators (including, but not limited to, service elevators) shall be as
Landlord from time to time determines best for the Building as a whole.

 

V.                                     RELAMPING OF
LIGHT FIXTURES

 

Tenant
will reimburse Landlord for the cost of lamps, ballasts and starters and the
cost of replacing same within the Premises. 
All lamps, ballasts and starters shall be operational and in good
working order at the commencement of the Tens of the Lease.

 

VI.                                 CAFETERIA AND
VENDING INSTALLATIONS

 

1.                                       Any space to be
used primarily for lunchroom or cafeteria operation shall be Tenant’s
responsibility to keep clean and sanitary, it being understood that Landlord’s
approval of such use must be first obtained in writing.

 

2.                                       Vending
machines or refreshment service installations by Tenant must be approved by
Landlord in writing and shall be restricted in use to employees and business
callers.  All clearing necessitated by
such installations shall be at Tenant’s expense.

 

VII.                             ELECTRICITY

 

A.                                   Landlord, at
Landlord’s expense, shall furnish electrical energy required for lighting,
electrical facilities, equipment, machinery, fixtures, and appliances used in
or for the benefit of the Premises, in accordance with the provisions of the
Lease of which this Exhibit is part.

 

 

B.                                     Tenant shall
not, without prior written notice to Landlord in each instance, connect to the
Building electric distribution system any fixtures, appliances or equipment
other than normal office machines such as personal computers, desk-top
calculators and typewriters, or any fixtures, appliances or equipment which Tenant
on a regular basis operates beyond normal building operating hours.  In the event of any such connection, Tenant
agrees to an increase in the BASE ANNUAL ELECTRICITY CHARGE which will reflect
the cost to Landlord of the additional electrical service to be furnished by
Landlord, such increase to be effective as of the date of any such installation.  If Landlord and Tenant cannot agree thereon,
such amount shall be conclusively determined by a reputable utility may impose
in connection with the installation of Tenant’s meters and to make or, at such
public utility’s election, to pay for such other installations as such public
utility may require, as a condition of providing comparable electrical service
to Tenant; and (4) Tenant shall thereafter pay, directly to the utility
furnishing the same, all charges for electrical services to the Premises.

 

VIII.                         LOADING DOCKS
AND FREIGHT ELEVATORS

 

Tenant
shall have access to loading docks and the freight elevator 24 hours a day, 7
days a week, subject to causes beyond Landlord’s reasonable control.

 

 

EXHIBIT E

 

RULES AND REGULATIONS

 

The
following rules and regulations have been formulated for the safety and
well-being of all tenants of the Building and to insure compliance with
governmental and other requirements.  Strict
adherence to these rules and regulations is necessary to guarantee that
each and every tenant will enjoy a safe and undisturbed occupancy of its
premises in the Building.  Any continuing
violation of these rules and regulations by Tenant shall constitute a
default by Tenant under the Lease.

 

1.                                       The entrances,
lobbies, passages, corridors, elevators, halls, courts, sidewalks, vestibules,
and stairways shall not be encumbered or obstructed by Tenant, Tenant’s agents,
servants, employees, licensees or visitors or used by them for any purposes
other than.  ingress or egress to and
from the Premises.  Landlord shall have
the right to control and operate portions of the Building and the facilities
furnished for common use of the tenants in such manner as Landlord deems best
for the benefit of the tenants generally.

 

2.                                       The moving in
or out of all safes, freight, furniture, or bulky matter of any description
shall take place during the hours which Landlord may determine from time to
time.  Landlord reserves the right to
inspect all freight and bulky matter to be brought into the Building and to
exclude from the Building all freight and bulky matter which violates any of
these Rules and Regulations or the Lease of which these Rules and
Regulations are a part.  Landlord
reserves the right to have Landlord’s structural engineer review Tenant’s floor
loads on the Premises at Tenant’s expense.

 

3.                                       Tenant, or the
employees, agents, servants, visitors or licensees of Tenant shall not at any
time place waste or discard any rubbish, paper, articles, or objects of any
kind whatsoever outside the doors of the Premises or in the corridors or
passageways of the Building.  No animals
or birds (other than fish in a fish tank) shall be brought or kept in or about
the Building.  Bicycles shall not be
permitted in the Building.

 

4.                                       Tenant shall
not place objects against glass partitions or doors or windows or adjacent to
any common space which would be unsightly from the Building corridors or from
the exterior of the Building and will promptly remove the same upon notice from
Landlord.

 

5.                                       Tenant shall
not make noises, cause disturbances, create vibrations, odors (other than
ordinarily acceptable tenant kitchen odors in the building) or noxious fumes or
use or operate any electric or electrical devices or other devices that emit
sound waves or are dangerous to other tenants and occupants of the Building or
that would interfere with the operation of any device or equipment or radio or
television broadcasting or reception from or within the Building or elsewhere,
or with the operation of roads or highways in the vicinity of the Building, and
shall

 

 

not place or install any projections, antennae, aerials, or similar
devices inside or outside of the Premises, without the prior written approval
of Landlord.

 

6.                                       Tenant may not
(without Landlord’s approval therefore, which approval will be signified on
Tenant’s Plan’s submitted pursuant to the Lease) and Tenant shall not permit or
suffer anyone to: (a) cook in the Premises except as accessory to the use
of a coffee room/kitchenette containing a microwave oven; (b) place
vending or dispensing machines of any kind in or about the Premises; (c) at
any time sell, purchase or give away, or permit the sale, purchase, or gift of
food in any form.

 

7.                                       Tenant shall
not: (a) use the Premises for lodging, manufacturing or for any immoral or
illegal purposes; (b) use the Premises to engage in the manufacture or
sale of, or permit the use of spirituous, fermented, intoxicating or alcoholic
beverages on the Premises; (c) use the Premises to engage in the
manufacture or sale, or permit the use of, any illegal drugs on the Premises.

 

8.                                       No awning or
other projections (including antennae) shall be attached to the outside walls
or windows.  No curtains, blinds, shades,
screens or signs other than those furnished by Landlord shall be attached to,
hung in, or used in connection with any window or door of the Premises without
prior written consent of Landlord.

 

9.                                       No signs,
advertisement, object, notice or other lettering shall be exhibited, inscribed,
painted or affixed on any part of the outside or inside of the Premises if
visible from outside of the Premises. 
Interior signs on doors shall be painted or affixed for Tenant by
Landlord or by sign painters first approved by Landlord at the expense of
Tenant and shall be of a size, color and style acceptable to Landlord.

 

10.                                 Tenant shall
not use the name of the Building or use pictures or illustrations of the
Building in advertising or other publicity without prior written consent of
Landlord.  Landlord shall have the right
to prohibit any advertising by Tenant which, in Landlord’s opinion, tends to
impair the reputation of the Building or its desirability for offices, and upon
written notice from Landlord, Tenant will refrain from or discontinue such
advertising.

 

11.                                 Door keys for
doors in the Premises will be furnished at the Commencement of the Lease by
Landlord.  Tenant shall not affix
additional locks on doors and shall purchase duplicate keys only from Landlord
and will provide to Landlord the means of opening of safes, cabinets, or vaults
left on the Premises.  In the event of
the loss of any keys so furnished by Landlord, Tenant shall pay to Landlord the
cost thereof.  Each tenant shall, upon
the termination of its tenancy, restore to Landlord all keys of offices,
storage and toilet rooms either furnished to, or otherwise procured by, such
tenant.

 

12.                                 Tenant shall
cooperate and participate in all security programs affecting the Building.

 

 

13.                                 Tenant assumes
full responsibility for protecting its space from theft, robbery and pilferage,
which includes keeping doors locked and other means of entry to the Premises
closed and secured.

 

14.                                 Tenant shall
not make any room-to-room canvass to solicit business from other tenants in the
Building, and shall not exhibit, sell or offer to sell, use, rent or exchange
any item or services in or from the Premises unless ordinarily embraced within
Tenant’s use of the Premises as specified in its Lease.  Canvassing, soliciting and peddling in the
Building are prohibited and Tenant shall cooperate to prevent the same.  Peddlers, solicitors and beggars shall be
reported to the Management Office.

 

15.                                 Tenant shall not
mark, paint, drill into, or in any way deface any part of the Building or
Premises.  No boring, driving of nails or
screws (except for picture hanging of pictures, and other customary items,
etc.), cutting or stringing of wires shall be permitted, except with the prior
written consent of Landlord, and as Landlord may direct.  Tenant shall not construct, maintain, use or
operate within their respective premises any electrical device, wiring or
apparatus in connection with a loud speaker system or other sound system,
except as reasonably required as part of a communication system approved in
writing by Landlord, prior to the installation thereof, Tenant shall not
install any resilient tile or similar floor covering in the Premises except
with the prior written approval of Landlord. 
The use of cement or other similar adhesive material is expressly
prohibited.

 

16.                                 Tenant shall
not waste electricity or water and agrees to cooperate fully with Landlord to
assure the most effective operation of the Building’s heating and air
conditioning and shall refrain from attempting to adjust controls.  Tenant shall keep corridor doors closed
except when being used for access.

 

17.                                 The water and wash closets and other plumbing
fixtures shall not be used for any purposes other than those for which they
were constructed, and no sweepings, rubbish, rags, or other substances shall be
thrown therein.  All damage resulting
from misuse of said fixtures shall be borne by the tenant who, or whose
servant, employees, agents, licensees, invitees, customers or guests
shall have caused the same.

 

18.                                 Building
employees shall not be required to perform, and shall not be requested by any
tenant or occupant to perform, any work outside of their regular duties, unless
under specific instructions from the office of the Managing Agent of the
Building.  The requirements of tenants
will be attended to only upon application to Landlord, and any special
requirements shall be billed to Tenant (and paid when the next installment of
rent is due) in accordance with the schedule of charges maintained by
Landlord from time to time or at such charge as is agreed upon in advance by
Landlord and Tenant.

 

19.                                 Tenant may
request heating and/or air conditioning during other periods in addition to
normal working hours by submitting its request in writing to the office

 

 

of the Managing Agent of the Building no later than 2:00 p.m. the
preceding work day (Monday through Friday) on forms available from the office
of the Managing Agent.  The request shall
clearly state the start and stop hours of the “off-hour” service.  Tenant shall submit to the Building Manager a
list of personnel authorized to make such request.  The Tenant shall be charged for such
operation in the form of additional rent; such charges (currently $55.00 per
hour) are to be determined by the Managing Agent and shall be fair and
reasonable and reflect the additional operating costs involved.

 

20.                                 Tenant
covenants and agrees that its use of the Premises shall not cause a discharge
of more than the gallonage per foot of Premises Design Floor Area per day of
sanitary (non-industrial) sewage allowed under the sewage discharge permit for
the Building.  Discharges in excess of
that amount, and any discharge of industrial sewage, shall only be permitted if
Tenant, at its sole expense, shall have obtained all necessary permits and
licenses therefore, including without limitation permits from state and local
authorities having jurisdiction thereof. 
Tenant shall submit to Landlord on December 31 of each year of the
Term of this Lease a statement, certified by an authorized office of Tenant,
which contains the following information: name of all chemicals, gases, and
hazardous substances, used, generated, or stored on the Premises; type of
substance (liquid, gas or granular); quantity used, stored or generated per
year; method of disposal; permit number, if any, attributable to each
substance, together with copies of all permits for such substances; and permit
expiration date for each substance.  No
flammable, combustible or explosive fluid, chemical or substance shall be brought
into or kept upon the Premises, the Building or the Lot (other than those
fluids or chemicals customarily used by tenants of other first-class office
buildings in connection with office purposes and then only those types and
quantities permitted under Landlord’s policies of insurance for the Building).

 

21.                                 Landlord
reserves the right to exclude from the Building at all times any person who is
not known or does not properly identify himself to the Building
management.  Landlord may, at its option,
require all persons admitted to or leaving the Building between the hours of
6:00 p.m. and 8:00 a.m., Monday through Friday, and at any hour on
Saturdays, Sundays and legal holidays, to register.  Each tenant shall be responsible for all
persons for whom it authorizes entry into the Building, and shall be liable to
Landlord for all acts or omissions of such persons.

 

22.                                 Landlord
reserves the right to inspect all freight to be brought into the Building and
to exclude from the Building all freight which violates any of these rules and
regulations.  There shall not be used in
any space or in the common halls of the Building, either by any tenant or by
jobbers or others in the delivery or receipt of merchandise, any hand trucks,
except those equipped with rubber tires and side guards.

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