Document:

exv10w3

 

EXHIBIT 10.3

LEASE

by and between

BMR-21 ERIE STREET LLC,

Landlord,

and

VERTEX PHARMACEUTICALS INCORPORATED,

Tenant,

dated as of November 14, 2006

 

 

ARTICLE I

REFERENCE DATA

1.1 SUBJECTS REFERRED TO

	 	 	 
	ANNUAL FIXED RENT RATE:
	 	$19/ rentable square foot (“r.s.f.”)
	 
	 	 
	APPROXIMATE TERM:
	 	5 years and 6 months
	 
	 	 
	BUILDING:
	 	The Building known as and numbered 21 Erie Street, Cambridge, Massachusetts, containing
	 
	 	approximately 48,238 r.s.f.
	 
	 	 
	INITIAL ESTIMATED ANNUAL
	 	 
	ADDITIONAL RENT:
	 	$203,364.24, based on $9.58/r.s.f.
	 
	 	 
	LANDLORD:
	 	BMR-21 Erie Street LLC
	 
	 	 
	LANDLORD’S ADDRESS:
	 	17140 Bernardo Center Drive, Suite 222
	 
	 	San Diego, California  92128
	 
	 	Attn:  General Counsel/Real Estate
	 
	 	 
	LANDLORD’S REPRESENTATIVE:
	 	John F. Wilson, II
	 
	 	 
	LEASE YEAR:
	 	Each consecutive period of twelve
(12) calendar months commencing on the Commencement Date if it occurs on the first day of a calendar month and otherwise
commencing on the first day of the month immediately following the
month in which the Commencement Date occurs, and each anniversary of
such date, except that the first Lease Year shall commence on the
Commencement Date and end on December 31, 2007.
	 
	 	 
	OPTIONS TO EXTEND:
	 	Two (2) Options to Extend the Term of this Lease for successive periods of five (5) years each,
	 
	 	in accordance with Section 10.12 hereof.
	 
	 	 
	PERMITTED USE:
	 	General office, research and development, laboratory and light manufacturing.
	 
	 	 
	PREMISES:
	 	Approximately 21,228 r.s.f. of
space in the Building as shown on Exhibit A.
	 
	 	 
	PUBLIC LIABILITY
	 	 
	INSURANCE LIMITS:
	 	Bodily injury:           $10,000,000
	 
	 	Property Damage:     $10,000,000
	 
	 	 
	RENT PAYMENT ADDRESS:
	 	BMR-21 Erie Street LLC
	 
	 	Unit P
	 
	 	P.O. Box 51919
	 
	 	Los Angeles, CA  90051-6219
	 
	 	 
	SCHEDULED RENT
	 	 
	COMMENCEMENT DATE:
	 	The date that is determined in accordance with Section 2.2

 

 

	 	 	 
	SCHEDULED TERM EXPIRATION DATE:
	 	Sixty (60) months after the Rent Commencement Date, subject to two (2) Options to Extend for
	 
	 	successive periods of five (5) years each in accordance with Section 10.12
	 
	 	 
	SECURITY DEPOSIT:
	 	None.
	 
	 	 
	TENANT:
	 	Vertex Pharmaceuticals Incorporated
	 
	 	 
	TENANT’S ADDRESS
	 	130 Waverly Street
	(For Notice and Billing):
	 	Cambridge, Massachusetts  02139-4242
	 
	 	 
	TENANT ALLOWANCE:
	 	$530,700 ($25/r.s.f.)
	 
	 	 
	TENANT’S ARCHITECT:
	 	Daniel Winny
	 
	 	 
	TENANT’S PROPORTIONATE
	 	 
	FRACTION:
	 	44.01%
	 
	 	 
	TENANT’S REPRESENTATIVE:
	 	Alfred Vaz, Jr.

1.2 EXHIBITS.

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

	 	 	 
	EXHIBIT A

	 	Plan Showing the Premises
	EXHIBIT B

	 	Tenant’s Plans
	EXHIBIT C

	 	Rules and Regulations
	EXHIBIT D

	 	Schedule of Floor Load Limits
	EXHIBIT E

	 	Schedule of Equipment to be Removed by Tenant
	EXHIBIT F

	 	Acknowledgement of Rent Commencement Date

 

 

1.3 TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE I
	 	 	2	 
	1.1 SUBJECTS REFERRED TO
	 	 	2	 
	1.2 EXHIBITS
	 	 	3	 
	1.3 TABLE OF CONTENTS
	 	 	4	 
	ARTICLE II
	 	 	6	 
	2.1 PREMISES
	 	 	6	 
	2.2 TERM
	 	 	6	 
	ARTICLE III
	 	 	6	 
	3.1 INITIAL CONSTRUCTION
	 	 	6	 
	3.3 GENERAL PROVISIONS APPLICABLE TO CONSTRUCTION
	 	 	9	 
	3.4 REPRESENTATIVES
	 	 	10	 
	ARTICLE IV
	 	 	10	 
	4.1 FIXED RENT
	 	 	10	 
	4.2 ADDITIONAL RENT
	 	 	10	 
	4.2.1 Real Estate Taxes
	 	 	10	 
	4.2.2 Insurance
	 	 	11	 
	4.2.2.1 Insurance Taken Out by Tenant
	 	 	11	 
	4.2.2.2 Insurance Taken Out by Landlord
	 	 	12	 
	4.2.2.3 Tenant Reimbursement of Insurance Taken Out by Landlord
	 	 	12	 
	4.2.2.4 Certain Requirements Applicable to Insurance Policies
	 	 	12	 
	4.2.2.5 Waiver of Subrogation
	 	 	12	 
	4.2.3 Utilities
	 	 	13	 
	4.2.4 Common Area Maintenance and Expenses
	 	 	13	 
	4.2.5 Payments on Account of Taxes, Insurance and Utilities
	 	 	15	 
	4.3 LATE PAYMENT OF RENT
	 	 	16	 
	ARTICLE V
	 	 	16	 
	5.1 AFFIRMATIVE COVENANTS
	 	 	16	 
	5.1.1 Perform Obligations
	 	 	16	 
	5.1.2 Occupancy and Use
	 	 	16	 
	5.1.3 Repair and Maintenance
	 	 	17	 
	5.1.4 Compliance with Law
	 	 	17	 
	5.1.5 Tenant’s Work
	 	 	19	 
	5.1.6 Indemnity
	 	 	19	 
	5.1.7 Landlord’s Right to Enter
	 	 	20	 
	5.1.8 Personal Property at Tenant’s Risk
	 	 	20	 
	5.1.9 Payment of Landlord’s Cost of Enforcement
	 	 	20	 
	5.1.10 Yield Up
	 	 	20	 
	5.1.11 Estoppel Certificate
	 	 	21	 
	5.1.12 Landlord’s Expenses Re Consents
	 	 	21	 
	5.1.13 Rules and Regulations
	 	 	21	 
	5.1.14 Loading
	 	 	21	 
	5.1.15 Holdover
	 	 	21	 
	5.2 NEGATIVE COVENANTS
	 	 	21	 
	5.2.1 Assignment and Subletting
	 	 	22	 
	5.2.2 Nuisance
	 	 	23	 
	5.2.3 Installation, Alterations or Additions
	 	 	23	 
	ARTICLE VI
	 	 	23	 
	6.1 TERMINATION
	 	 	23	 
	6.2 RESTORATION
	 	 	23	 
	6.3 AWARD
	 	 	24	 
	ARTICLE VII
	 	 	24	 
	7.1 EVENTS OF DEFAULT
	 	 	24	 
	7.2 REMEDIES
	 	 	25	 
	7.3 REMEDIES CUMULATIVE
	 	 	25	 
	7.4 LANDLORD’S RIGHT TO CURE DEFAULTS
	 	 	26	 
	7.5 EFFECT OF WAIVERS OF DEFAULT
	 	 	26	 
	7.6 NO ACCORD AND SATISFACTION
	 	 	26	 
	ARTICLE VIII
	 	 	26	 
	8.1 RIGHTS OF MORTGAGE HOLDERS
	 	 	26	 

 

 

	 	 	 	 	 
	8.2 SUPERIORITY OF LEASE; OPTION TO SUBORDINATE
	 	 	27	 
	8.3 LEASE AMENDMENTS
	 	 	27	 
	ARTICLE IX
	 	 	27	 
	9.1 AFFIRMATIVE COVENANTS
	 	 	27	 
	9.1.1 Perform Obligations
	 	 	28	 
	9.1.2 Repairs
	 	 	28	 
	9.1.3 Compliance with Law
	 	 	28	 
	9.1.4 Indemnity
	 	 	28	 
	9.1.5 Estoppel Certificate
	 	 	28	 
	9.1.7 Utilities
	 	 	29	 
	ARTICLE X
	 	 	29	 
	10.1 NOTICES FROM ONE PARTY TO THE OTHER
	 	 	29	 
	10.2 QUIET ENJOYMENT
	 	 	29	 
	10.3 EASEMENTS; CHANGES TO LOT LINES
	 	 	29	 
	10.4 LEASE NOT TO BE RECORDED
	 	 	29	 
	10.5 BIND AND INURE; LIMITATION OF LANDLORD’S LIABILITY
	 	 	29	 
	10.6 ACTS OF GOD
	 	 	30	 
	10.7 LANDLORD’S DEFAULT
	 	 	30	 
	10.8 BROKERAGE
	 	 	30	 
	10.9 APPLICABLE LAW AND CONSTRUCTION
	 	 	31	 
	10.10 SUBMISSION NOT AN OFFER
	 	 	31	 
	10.11 SECURITY DEPOSIT
	 	 	31	 
	10.12 OPTIONS TO EXTEND
	 	 	31	 
	10.13 INTENTIONALLY OMITTED
	 	 	32	 
	10.14 PARKING
	 	 	32	 
	10.15 CONFIDENTIAL INFORMATION
	 	 	33	 
	10.16 SIGNAGE
	 	 	33	 

 

 

ARTICLE II

PREMISES AND TERM

2.1 PREMISES.

     Landlord hereby leases and demises to Tenant and Tenant hereby leases from Landlord, subject
to and with the benefit of the terms, covenants, conditions and provisions of this Lease, the
Premises. Tenant shall have, as appurtenant to the Premises, the right to use in common with
others, if any, entitled thereto (i) the common facilities, if any, included in the Building or on
the property underlying the Building (the “Lot”), (ii) the building service fixtures and equipment
serving the Premises, and (iii) subject to Section 10.14 hereof, the right to use 32 parking spaces
(“Tenant’s Parking Spaces”) in the parking garage located at 47 Erie Street, Cambridge,
Massachusetts (the “Garage”).

     Landlord reserves the right from time to time, without unreasonable interference with Tenant’s
use, (a) to install, repair, replace, use, maintain and relocate for service to the Premises and to
other parts of the Building building service fixtures and equipment wherever located in the
Building, provided, however, that the Annual Fixed Rent, Additional Rent (as defined in Section 4.2
hereof) and other charges payable hereunder by Tenant shall be proportionally reduced in the event
that any such installation or relocation of service materially reduces the usable floor area of the
Premises (other than a temporary reduction to accommodate installation, repair, replacement,
maintenance and relocation of such service); and (b) to alter or relocate any common facilities
and/or Tenant’s Parking Spaces on or (subject to Section 10.14 hereof) off the Lot, provided that
in all events (1) substitutions are in compliance with applicable zoning laws, (2) substitutions
are substantially equivalent, and (3) the total number of parking spaces available to Tenant on or
off the Lot is not decreased.

2.2 TERM.

     To have and to hold for a period (the “Term”) commencing on the date hereof (the
“Commencement Date”), and continuing until the date that is sixty (60) months after the
date (the “Rent Commencement Date”) that is the earlier of (a) six (6) months after the
Commencement Date and (b) Tenant’s occupancy of the Premises or any portion thereof for the
Permitted Use (and not for the performance of Tenant’s Work), unless sooner terminated as provided
in Article VII, and subject to extension in accordance with the terms of Section 10.12 hereof.
Tenant shall have the right to access the Premises as of the Commencement Date for purposes of
installing equipment and furnishings and performing Tenant’s Work (as hereinafter defined) in
accordance with and subject to the provisions of Section 3.2. Tenant shall execute and deliver to
Landlord written acknowledgment of the actual Rent Commencement Date within ten (10) days after the
occurrence thereof, in the form attached as Exhibit F hereto. Failure to execute and
deliver such acknowledgment, however, shall not affect the Rent Commencement Date or Landlord’s or
Tenant’s liability hereunder.

ARTICLE III

IMPROVEMENTS

3.1 INITIAL CONSTRUCTION.

     All of Tenant’s initial interior improvements, fixtures, finishes, furnishings, furniture,
telephones, movable equipment, base building improvements to the Building, and signs visible from
the exterior of the Building (collectively, “Tenant’s Work”) shall be performed at the sole cost
and expense of Tenant, provided however, that, subject to Section 3.2.1 hereof,
Landlord shall advance up to the amount of the Tenant Allowance. Tenant shall be responsible for
all costs of Tenant’s Work in excess of the Tenant Allowance. Tenant may use the Tenant Allowance
for (a) construction, (b) project management by Landlord (as described below), (c) space planning,
architect, engineering and other related services (which costs shall not exceed fifteen percent
(15%) of all hard and soft costs of performing Tenant’s Work) and (d) building permits and other
taxes, fees, charges and levies by Governmental Authorities for permits or for inspections of
Tenant’s Work. In no event shall the Tenant Allowance be used for (w) the

6

 

purchase of any furniture, personal property or other non-building system equipment, (x) the cost
of work that is not authorized by the plans described in Exhibit B (which plans shall
be subject to Landlord’s reasonable approval) or otherwise approved in writing by Landlord, (y)
costs resulting from any default by Tenant of its obligations under this Lease or (z) costs that
are recoverable or reasonably recoverable by Tenant from a third party (e.g., insurers, warrantors,
or tortfeasors). Tenant’s Representative shall serve as construction manager for Tenant’s Work.
Tenant’s performance of Tenant’s Work shall be performed so as not to damage the Building or Lot or
interfere with Building or Lot operations. Landlord shall provide Tenant and Tenant’s Contractor
(as defined below) with reasonable access to the Building in order to complete the base building
improvements portion of Tenant’s Work. All work described in Tenant’s Work shall be performed by a
contractor selected by Tenant and approved by Landlord, which approval shall not be unreasonably
withheld (“Tenant’s Contractor”). The performance of Tenant’s Work in accordance with this Lease
shall not be deemed to be a violation of the Permitted Use of the Premises. Except as set forth in
Sections 3.3 and 5.1.10 hereof and Exhibit E hereto, all Tenant’s Work shall become a part
of the Premises or Building and upon termination of this Lease shall be considered to be the
property of the Landlord. Tenant shall provide a draft of Exhibit E to Landlord on or
prior to the Rent Commencement Date, which Exhibit E shall be subject to Landlord’s
reasonable approval. Any unused portion of the Tenant Allowance shall be used to reduce Tenant’s
monthly obligation of Annual Fixed Rent.

     3.2 [Intentionally omitted]

     3.2.1. Performance of Tenant’s Work.

     Tenant shall not effect any Tenant’s Work (or any alterations or additions to the Premises
after performance of Tenant’s Work) that might (i) diminish the value of the Premises for
laboratory/office use, or (ii) require any unusual expense to re-adapt the Premises for any
laboratory/office use.

     Tenant’s Work shall be performed in accordance with complete, consistent, final construction
drawings and specifications (“Construction Documents”) approved in advance by Landlord in writing,
which approval shall not be unreasonably withheld. The Construction Documents shall be prepared
and stamped by Tenant’s Architect and approved by Landlord in writing. Landlord reserves the right
to reject, in whole or in part, the Construction Documents which in its reasonable opinion fail to
comply with the provisions of this Lease within fifteen (15) business days of its receipt thereof
(the “Review Period”). The Review Period shall not commence unless and until Tenant delivers a
complete set of Construction Documents. If Landlord shall disapprove the Construction Documents,
it shall state specifically the reasons therefor, and Tenant shall promptly revise and resubmit the
Construction Documents. If Landlord fails to respond to Tenant’s request for approval of the
Construction Documents within the Review Period then the Construction Documents shall be deemed
approved.

     Tenant shall be solely responsible for the liabilities of and expenses of all architectural
and engineering services relating to Tenant’s Work and for the adequacy, accuracy, and completeness
of the Construction Documents approved by Landlord unless Tenant elects that Landlord advance the
Tenant Allowance (and if so elected, then only to the extent of the Tenant Allowance). The
Construction Documents (i) shall set forth in detail the requirements for construction of the
Tenant’s Work (including all architectural, mechanical, electrical and structural drawings and
detailed specifications), (ii) shall be fully coordinated with one another and with field
conditions as they exist in the Premises and elsewhere in the Building, and (iii) shall show all
work necessary to complete the Tenant’s Work including all cutting, fitting, and patching and all
connections to the mechanical and electrical systems and components of the Building. Tenant agrees
to hold Landlord harmless if any Tenant’s Work described in the Construction Documents (a) fails to
comply with all applicable laws, regulations, building codes, and building design standards, (b) in
any manner affects any structural component of the Building (including, without limitation,
exterior walls, exterior windows, core walls, roofs or floor slabs), (c) in any respect is
incompatible with the electrical and mechanical components and systems of the Building, (d) affects
the exterior of the Building, (e) fails to conform to floor loading limits, and (f) with respect to
all materials, equipment and special designs, processes, or products, infringes on any patent or
other proprietary rights of others. Landlord’s approval or deemed approval of the Construction
Documents and the performance of Tenant’s Work

7

 

pursuant to the Construction Documents shall not
result in any liability of Landlord, except with respect to Landlord’s advance of the Tenant
Allowance, and Landlord’s approval of
Construction Documents shall signify only Landlord’s consent to Tenant’s Work shown thereon
and shall not result in any responsibility of Landlord concerning compliance of Tenant’s Work with
laws, regulations, or codes, coordination of any aspect of Tenant’s Work with any other aspect of
Tenant’s Work, or the feasibility of constructing Tenant’s Work without material damage or harm to
the Building, all of which shall be the sole responsibility of Tenant.

     After Tenant’s Contractor has been approved, then the same may thereafter be used by Tenant
until Landlord notifies Tenant that Tenant’s Contractor is no longer approved due to Tenant’s
Contractor’s failure to comply in any material respect with the requirements of the Construction
Documents and/or this Lease. William A. Berry & Son, Inc., is approved by Landlord as Tenant’s
Contractor. Tenant shall procure all necessary governmental permits, licenses and approvals before
undertaking any Tenant’s Work. Tenant shall perform all Tenant’s Work at Tenant’s risk in
compliance with all applicable laws, codes and regulations and in a good and workmanlike manner
employing new materials of good quality. When any Tenant’s Work is in progress, Tenant shall cause
to be maintained (i) insurance as may be required by Landlord covering any additional hazards due
to such Tenant Work, and (ii) a statutory lien bond pursuant to M.G.L. c.254, §12 or any successor
statute (or such other protection of Landlord’s interest in the Building and Lot against liens as
Landlord may reasonably require), in each case for the benefit of Landlord. It shall be a
condition of Landlord’s approval of any Tenant’s Work that certificates of such insurance and a
lien bond in recordable form, both issued by responsible insurance companies qualified to do
business in Massachusetts and reasonably approved by Landlord, shall have been deposited with
Landlord, that Tenant has provided Tenant’s certification of the insurable value of the work in
question for casualty insurance purposes, and that all of the other conditions of the Lease have
been satisfied. Tenant shall reimburse up to $10,000.00 for Landlord’s reasonable costs of
reviewing proposed Tenant’s Work and inspecting installation of the same provided
however, that if Tenant elects to have Landlord advance the Tenant Allowance, such costs
may be paid from the Tenant Allowance. At all times while performing Tenant’s Work, Tenant shall
require any Tenant’s Contractor to comply with all applicable laws, regulations, permits and
policies relating to such work. In performing Tenant’s Work, each Tenant’s Contractor shall comply
with Landlord’s requirements set forth in Section 3.2.1, the first paragraph of Section 3.3,
Section 5.1.5 and Section 5.2.3 hereof relating to the time and methods for such work, use of
delivery elevators and other Building facilities and each Tenant’s Contractor shall not interfere
or disrupt Landlord’s Contractor. Each Tenant’s Contractor shall in all events work on the
Premises without causing labor disharmony, coordination difficulties, or delay or impair any
guaranties, warranties or obligations of any contractors of Landlord. If any Tenant’s Contractor
uses any Building services or facilities, such Contractor, jointly and severally with Tenant, shall
agree to reimburse Landlord for the cost thereof based on Landlord’s schedule of charges
established from time to time (and if no such charges have been established, then based on
Landlord’s reasonable charge established at the time). Each Tenant’s Contractor shall, by entry
into the Building, be deemed to have agreed to indemnify and hold Landlord harmless from any claim,
loss or expense arising in whole or in part out of any act or neglect committed by such person
while in the Building, to the same extent as Tenant has so agreed in this Lease, the indemnities of
Tenant and Tenant’s Contractor to be joint and several.

     Tenant shall pay on or prior to the date when any such payment is due, either from its own
funds or from the Tenant Allowance, the entire cost of all Tenant’s Work so that the Premises shall
always be free of liens for labor or materials. If any mechanic’s lien (which term shall include
all similar liens relating to the furnishing of labor and materials) is filed against the Premises
or the Building or any part thereof which is claimed to be attributable to Tenant, its agents,
employees or contractors, Tenant shall promptly discharge the same by payment or filing any
necessary bond within thirty (30) days after Tenant has notice (from any source) of such mechanic’s
lien. Landlord may, as a condition of its approval of any Tenant’s Work, require Tenant to deposit
with Landlord a bond, letter of credit or other similar security in the amount of Landlord’s
reasonable estimate of the value of such Work securing Tenant’s obligations to make payments for
such Work.

     Tenant shall provide Landlord with a budget and copies of all contracts entered into with
respect to Tenant’s Work and such other information as Landlord reasonably may request. The

8

 

Tenant Allowance shall be advanced to Tenant by Landlord no more frequently than monthly against costs
then incurred but unpaid by Tenant with respect to Tenant’s Work. The Tenant Allowance shall be
advanced to Tenant in the proportion which the Tenant Allowance bears to
Tenant’s budget, as the same may be updated, for Tenant’s Work. Tenant shall make application
to Landlord for an advance of the Tenant Allowance at least ten (10) business days prior to the
date upon which an advance is to be made. Such application shall be on such form or forms as
Landlord reasonably may require, and shall be accompanied by invoices, receipts, lien waivers and
such other documents as Landlord reasonably may require.

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 any governmental authority or insurer of the Building.
Either party may inspect the work of the other at reasonable times and shall give notice of
observed defects. Landlord shall not be responsible for any loss, damage, or injury resulting from
the installation of any components, fixtures, or equipment provided they were appropriately
specified and installed in accordance with the manufacturer’s or supplier’s instructions.

     After the performance of Tenant’s Work, Tenant will not make any alterations or additions to
the Premises without Landlord’s approval, which approval shall not be unreasonably withheld or
delayed provided that Landlord and Tenant shall agree in writing whether Tenant will be required
to, permitted to or forbidden to, at Tenant’s sole cost and expense, remove any such alteration or
addition upon the expiration or termination of this Lease. Landlord’s approval of any alteration
or addition which is not a Minor Alteration (as defined below in this Section 3.3) shall be deemed
to have been given if Landlord fails to notify Tenant of its objection thereto within fifteen (15)
business days after Tenant’s request for such approval. In circumstances in which Tenant desires
the right to remove additions or alterations at the expiration or termination of this Lease,
Landlord shall reasonably agree, and such agreement shall not be unreasonably withheld or delayed
(and shall be deemed to have been given if Landlord fails to notify Tenant of its objection thereto
within fifteen (15) business days after Tenant’s request for such agreement), to permit such
removal (i) where items installed by Tenant are in the nature of equipment, but are so affixed to
Building that such items may be construed as fixtures or (ii) where additions or alterations of
Tenant include specific items that after removal from the Building will have in the aggregate for
each such alteration or addition a fair market value of $25,000.00 or greater. Tenant’s rights to
remove additions or alterations hereunder shall not apply to replacement of items included in
Tenant’s Work that are replaced due to the fact that such items have worn out or become
substantially obsolete. In the event the Tenant is required to or permitted to remove any such
alteration or addition, as a condition to Landlord’s approval of such alteration or addition,
Tenant shall agree in writing to readapt, repair and restore the Premises to the condition the same
were in prior to such alteration or addition. After the performance of Tenant’s Work, all changes
and additions shall be part of the Building except such items as by writing at the time of approval
the parties agree either shall be removed by Tenant on termination of this Lease, or shall be
removed or left at Tenant’s election.

     Notwithstanding the foregoing, the parties hereby agree that for any non-structural
alterations or additions to the Premises which do not involve modifications to the Building
operating systems and for which the cost may be reasonably estimated to be less than $50,000 (each
a “Minor Alteration”): (i) Landlord’s prior written consent shall not be required unless such Minor
Alteration requires a building permit from the City of Cambridge, in which case Landlord’s
reasonable consent shall be required, provided that such consent shall be deemed to have been given
if Landlord fails to notify Tenant of its objection to such Minor Alteration within 5 days after
Tenant’s request for Landlord’s consent with respect thereto, and (ii) upon the expiration or
termination of this Lease, Tenant shall readapt, repair and restore the Premises to the condition
the same were in prior to such Minor Alteration, regardless of whether Landlord’s consent was
required or obtained with respect thereto. Additionally, Tenant shall give prior written notice to
Landlord of any Minor Alteration for which the cost may be reasonably estimated to be less than
$50,000 but greater than $25,000 and regardless of whether Landlord’s consent is required.

9

 

     The parties further agree that after the performance of Tenant’s Work (a) any request for
consent to any alteration or addition (including, without limitation, any Minor Alteration) shall
be accompanied by drawings and specifications in reasonable detail given the size and scope of
the proposed alteration or addition, and (b) Tenant shall furnish Landlord as-built drawings and
electronic CADD files on disc (or files in such other current format in common use as Landlord
reasonably approves or requires) showing any and all alterations or additions (including, without
limitation, any and all Minor Alterations) made by Tenant or any assignee, sublessee or licensee of
Tenant within 30 days after completion of the same.

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

ARTICLE IV

RENT

4.1 FIXED RENT.

     Commencing on the Rent Commencement Date, Tenant covenants and agrees to pay rent to Landlord,
without any offset or reduction whatsoever (except as may be made in accordance with the express
provisions of this Lease), at the Rent Payment Address or at such other place or to such other
person or entity as Landlord may by notice to Tenant from time to time direct, at the Annual Fixed
Rent Rate set forth in Article I, in equal installments equal to 1/12th of the Annual Fixed Rent
Rate in advance on the first day of each calendar month included in the Term; and for any portion
of a calendar month at the beginning or end of the Term, at that rate payable in advance for such
portion.

4.2 ADDITIONAL RENT.

     In order that the Fixed Rent shall be absolutely net to Landlord, commencing on the
Commencement Date, Tenant covenants and agrees to pay, as “Additional Rent,” without any offset or
reduction whatsoever, taxes, municipal or state betterment assessments, insurance costs, utility
charges and Annual Maintenance Charges with respect to the Premises as provided in this Section 4.2
as follows:

     As used herein, the term “Estimated Annual Additional Rent” shall mean and refer to Landlord’s
estimate of the total amount of Additional Rent which may be due from Tenant for any particular
Lease Year. Landlord shall furnish Tenant with a statement within sixty (60) days after the
commencement of each Lease Year setting forth the amount of Landlord’s Estimated Annual Additional
Rent for such Lease Year. Landlord’s good faith estimate of the Estimated Annual Additional Rent
for the first fiscal year of the Term is set forth in Section 1.1 as the “Initial Estimated Annual
Additional Rent”.

     4.2.1 Real Estate Taxes. Tenant shall pay directly to the Landlord: (i) all taxes, assessments
(special or otherwise), levies, fees, water and sewer rents and charges, and all other government
levies and charges, general and special, ordinary and extraordinary, foreseen and unforeseen (and
Tenant’s Proportionate Fraction of any such taxes, assessments, levies, fees and charges if they
are assessed against the entire Building or Lot), which are, at any time prior to or during the
Term hereof, imposed or levied upon or assessed against (A) the Premises or the Building or the
Lot, (B) any Fixed Rent, Additional Rent or other sum payable hereunder or (C) this Lease, or the
leasehold estate hereby created, or which arise in respect of the operation, possession or use of
the Premises or the Building or the Lot; (ii) all gross receipts or similar taxes imposed or levied
upon, assessed against or measured by any Fixed Rent, Additional Rent or other sum payable
hereunder; (iii) all sales, value added, use and similar taxes at any time levied, assessed or
payable on account of the acquisition, leasing or use of the Premises (and Tenant’s Proportionate
Fraction of any such taxes if they are levied, assessed or payable on account of the acquisition,
leasing or use of the entire Building or Lot); and (iv) all charges for

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utilities furnished to the Premises (and Tenant’s Proportionate Fraction of all charges for utilities furnished to the entire
Building or Lot) which may become a lien on the Building or the Lot or the Premises (collectively
“taxes and assessments” or if singular “tax or assessment”). For each tax or assessment period, or
installment period thereof, wholly included in the Term, all such payments shall be made by Tenant to Landlord not less than
five (5) days prior to the last date on which the same may be paid without interest or penalty.
For any fraction of a tax or assessment period, or installment period thereof, included in the Term
at the beginning or end thereof, Tenant shall pay to Landlord, within 20 days after receipt of
invoice therefor, the fraction of taxes and assessments so levied or assessed or becoming payable
which is allocable to such included period. At Landlord’s option, Tenant shall pay taxes and
assessments in accordance with Section 4.2.5 hereof. Anything herein to the contrary
notwithstanding, if and to the extent that the Lot is not a separately assessed parcel, Landlord
shall make a fair and reasonable allocation of any taxes and assessments between the Lot and the
remaining parcel of land of which the Lot is a part.

     In the event that Tenant requests that Landlord apply for any abatement of, or otherwise
contest, any tax or assessment, Landlord shall file such abatement or otherwise contest such tax or
assessment and shall diligently pursue the same to completion, provided that (i) Landlord receives
notice of such request from Tenant that such application be made by Landlord in accordance with
applicable laws, and (ii) the expenses of such proceedings, including, without limitation, any
penalties, interest, late fees or charges, and attorneys’ fees incurred as a result thereof, shall
be paid by Tenant.

     Nothing contained in this Lease shall, however, require Tenant to pay any income taxes, excess
profits taxes, excise taxes, franchise taxes (“Excluded Taxes”), estate, succession, inheritance or
transfer taxes, provided, however, that if at any time during the Term the present system of ad
valorem taxation of real property shall be changed so that in lieu of the whole or any part of the
ad valorem tax on real property, there shall be assessed on Landlord a capital levy or other tax on
the gross rents received with respect to the Building or the Lot, or all of them, or a federal,
state, county, municipal, or other local income, franchise, excise or similar tax, assessment, levy
or charge (distinct from any now in effect) measured by or based, whole or in part, upon gross
rents, then any and all of such taxes, assessments, levies or charges, to the extent so measured or
based (“Substitute Taxes”), shall be payable by Tenant; provided, however, that (i) Tenant’s
obligation with respect to the aforesaid Substitute Taxes shall be limited to the amount thereof as
computed at the rates that would be payable if the Premises were the only property of Landlord, and
(ii) only that portion of the Substitute Taxes in excess of the Excluded Taxes shall be payable by
Tenant. Landlord shall furnish to Tenant a copy of any notice of any public, special or betterment
assessment received by Landlord concerning the Premises.

     4.2.2 Insurance.

          4.2.2.1 Insurance Taken Out by Tenant.

               Tenant shall take out and maintain throughout the Term the following insurance:

               (a) Comprehensive liability insurance indemnifying Landlord and Tenant against all claims and
demands for (i) injury to or death of any person or damage to or loss of property, on the Premises
or adjoining walks, streets or ways, or connected with the use, condition or occupancy of any
thereof unless caused by the negligence of Landlord or its servants or agents, (ii) violation of
this Lease, or (iii) any act, fault or omission, or other misconduct of Tenant or its agents,
contractors, licensees, sublessees or invitees, in amounts which shall, at the beginning of the
Term, be at least equal to the limits set forth in Section 1.1, and, from time to time during the
Term, shall be for such higher limits, if any, as are customarily carried in the area in which the
Premises are located on property similar to the Premises and used for similar purposes; and shall
be written on the “Occurrence Basis” and include Host Liquor liability insurance; and

               (b) Worker’s compensation insurance with statutory limits covering all of the Tenant’s
employees working on the Premises.

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          4.2.2.2 Insurance Taken Out by Landlord.

                    Landlord shall take out and maintain throughout the Term the following insurance:

                    (a) Comprehensive liability insurance for the Building and Lot of the same nature and type as
described in Section 4.2.2.1(a) of this Lease, and with the same policy limits; and

                    (b) All risk, fire and casualty insurance on a 100% replacement cost basis, together with
rental loss coverage and, if the Building is located in a flood zone, flood coverage to the extent
the same is available, insuring the Building and its rental value; and

                    (c) Insurance against loss or damage from sprinklers and from leakage or explosions or
cracking of boilers, pipes carrying steam or water, or both, pressure vessels or similar apparatus,
in the so-called “broad form”, in such amounts as are customary and commercially reasonable for
buildings in the Cambridge, Massachusetts area which are of like kind and quality to the Building
and have laboratory uses, and insurance against such other hazards and in such amounts as may from
time to time be required by any bank, insurance company or other lending institution holding a
first mortgage on the Building and Lot.

               Landlord shall have no obligation to insure Tenant’s personal property or chattels, including
without limitation, Tenant’s trade fixtures.

          4.2.2.3 Tenant Reimbursement of Insurance Taken Out by Landlord.

                    Tenant shall from time to time reimburse Landlord within thirty days of Landlord’s invoice for
Tenant’s Proportionate Fraction of Landlord’s costs incurred in providing the insurance provided
pursuant to Section 4.2.2.2 of this Lease, equitably prorated in the case of blanket policies to
reflect the insurance coverage reasonably attributable to the Premises, and provided further that
Tenant shall reimburse Landlord for all of Landlord’s costs incurred in providing such insurance
which is attributable to any special endorsement or increase in premium resulting from the business
or operations of Tenant, and any special or extraordinary risks or hazards resulting therefrom,
including without limitation, any risks or hazards associated with the generation, storage and
disposal of medical waste. At Landlord’s option, Tenant shall reimburse Landlord for insurance
costs in accordance with Section 4.2.5 hereof.

          4.2.2.4 Certain Requirements Applicable to Insurance Policies.

                    Policies for insurance provided for under the provisions of Sections 4.2.2.2(b) and 4.2.2.2(c)
shall, in case of loss, be first payable to the holders of any mortgages on the Building and Lot
under a standard mortgagee’s clause, and shall be deposited with the holder of any mortgage or with
Landlord, as Landlord may elect. All policies for insurance required to be obtained by either
party under the provisions of Section 4.2.2 shall be obtained from responsible companies qualified
to do business in the state in which the Premises are located and in good standing therein, which
companies and the amount of insurance allocated thereto shall be subject to Landlord’s approval.
Each party agrees to furnish the other with certificates of all such insurance which such party is
obligated to obtain pursuant to Section 4.2.2 prior to the beginning of the Term hereof and with
renewal certificates at least 30 days prior to the expiration of the policy they renew. In
addition, Tenant agrees to furnish Landlord with any policies of insurance which Tenant is
obligated to obtain hereunder, including any renewal policies, upon request of any of Landlord’s
mortgagees (provided that Tenant may redact from such policies any Confidential Information, as
defined in Section 10.15 hereof). Each such policy required to be maintained by Tenant shall name
Landlord and Landlord’s direct and indirect parents and members as additional insureds and shall be
noncancellable with respect to the interest of Landlord, Landlord’s direct and indirect parents and
members and such mortgagees without at least 30 days’ prior written notice thereto.

          4.2.2.5 Waiver of Subrogation.

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                    All insurance which is carried by either party with respect to the Premises or to furniture,
furnishings, fixtures or equipment therein or alterations or improvements thereto, whether or not
required, shall include provisions which either designate the other party as one of the insured or
deny to the insurer acquisition by subrogation of rights of recovery against the other party to the
extent such rights have been waived by the insured party prior to occurrence of loss or injury,
insofar as, and to the extent that such provisions may be effective without making it impossible to
obtain insurance coverage from responsible companies qualified to do business in the state in which
the Premises are located (even though extra premium may result therefrom) and without voiding the
insurance coverage in force between the insurer and the insured party. In the event that extra
premium is payable by either party as a result of this provision, the other party shall reimburse
the party paying such premium the amount of such extra premium. If at the request of one party,
this non-subrogation provision is waived, then the obligation of reimbursement shall cease for such
period of time as such waiver shall be effective, but nothing contained in this Section 4.2.2.5
shall derogate from or otherwise affect releases elsewhere herein contained of either party for
claims. Each party hereby waives all rights of recovery against the other for loss or injury
against which the waiving party is protected by insurance containing said provisions, reserving,
however, any rights with respect to any excess of loss or injury over the amount recovered by such
insurance. Tenant shall not acquire as insured under any insurance carried on the Premises under
the provisions of this Section 4.2.2 any right to participate in the adjustment of loss or to
receive insurance proceeds and agrees upon request promptly to endorse and deliver to Landlord any
checks or other instruments in payment of loss in which Tenant is named as payee.

     4.2.3 Utilities.

          Tenant shall pay directly to the proper authorities charged with the collection thereof all
charges for water, sewer, gas, electricity, telephone and other utilities or services used or
consumed on the Premises, whether called charge, tax, assessment, fee or otherwise, including,
without limitation, water and sewer use charges and taxes, if any, all such charges to be paid as
the same from time to time become due. If Tenant is not charged directly by the respective utility
for any of such utilities or services, Tenant shall from time to time, within 20 days of receipt of
Landlord’s invoice therefor, pay to Landlord Tenant’s Proportionate Fraction of the total of such
charges for the Building and Lot provided that, at Landlord’s option, all such charges shall be
payable by Tenant in accordance with Section 4.2.5. It is understood and agreed that (i) Landlord
shall be responsible for bringing such utilities to a common switching point(s) at the Building,
which, in the case of electricity shall mean the switch gear and not the transformer (collectively,
the “Utility Switching Points”) as shown on plans described in Exhibit B at Landlord’s cost
and expense; (ii) Tenant shall pay for any and all costs to connect such utilities from such
Utility Switching Points to the Building; (iii) Landlord shall be under no obligation to furnish
any utilities to the Premises (beyond the foregoing responsibility to bring such utilities to the
Utility Switching Points and as may be shown on the plans described in Exhibit B); and (iv)
Landlord shall not be liable for any interruption or failure in the supply of any such utilities to
the Premises; provided, however, that in the event such loss or failure is due to Landlord’s
negligence or willful misconduct, Landlord shall be responsible for restoring the supply of such
utilities to the Premises but otherwise shall have no liability to Tenant. Without limitation of
the foregoing, in the event of a Casualty or Taking, if Landlord and Tenant reasonably determine
and agree that utilities will not be repaired or restored so as to be available at the Utility
Switching Points within one year after the occurrence of such Casualty or Taking, then Tenant shall
have the right to terminate this Lease by notice given within 30 days after the date of such
determination.

     4.2.4 Common Area Maintenance and Expenses.

          Landlord shall maintain the Lot and the exterior of the Building in a clean and orderly
condition including without limitation, keeping the Lot and exterior of the Building clean and free
of debris, keeping the sidewalks, driveways and parking areas reasonably clear of snow and ice, and
maintaining the exterior landscaping, lighting, parking areas and sidewalks of the Lot. Tenant
shall maintain the interior of the Premises, including the mechanical, electrical and
plumbing systems of the Building that serve the Premises exclusively in good order, repair and
condition (provided that if Tenant shall fail to effect such repairs or maintenance, at Landlord’s
option, Landlord may effect such repairs or maintenance and charge
the entire cost thereof to

13

 

Tenant as Additional Rent). Notwithstanding the foregoing, it is expressly understood and agreed
that Landlord shall have no liability or responsibility for the storage, containment or disposal of
any hazardous or medical waste generated, stored or contained by Tenant, Tenant hereby agreeing to
store, contain and dispose of any and all such hazardous or medical waste at Tenant’s sole cost and
expense in accordance with the provisions of Article V hereof. Tenant shall pay to Landlord as
Additional Rent the Annual Maintenance Charge computed and payable as follows:

	 	(1)	 	The Annual Maintenance Charge shall be equal to the sum of the Annual Lot
Maintenance Charge and the Annual Building Maintenance and Operation Charge as
hereinafter defined.

     (a) The Annual Lot Maintenance Charge shall be equal to the costs incurred by
Landlord during the fiscal year (as hereinafter defined) for which the Annual
Maintenance Charge is being computed (the “Current Fiscal Year”) in providing Lot
maintenance, including without limitation landscaping, street lighting, security (if
required, in Landlord’s judgment), maintenance and snow plowing, maintenance of Lot
signage, maintenance of utilities, management fees and amortization of equipment to
the extent used for Lot maintenance.

     (b) The Annual Building Maintenance and Operation Charge shall be equal to
Tenant’s Proportionate Fraction of the reasonable costs incurred by Landlord during
the Current Fiscal Year in providing Building maintenance, including without
limitation maintenance and repair of all heating, plumbing, electrical, air
conditioning and mechanical fixtures and equipment serving the Building or the
Premises), elevators, trash dumpster rental, trash removal, remediation, performance
of such other tasks as Tenant shall request and Landlord shall agree to perform,
management fees (exclusive of leasing and sale commissions, fees paid in connection
with tenant improvement costs, and such other fees or commissions paid in connection
with the leasing, re-leasing, extension or renewal of leases for the Building or the
Lot) and amortization of equipment to the extent used for Building maintenance.

     Notwithstanding the foregoing, management fees included in the Annual Maintenance Charge shall
not exceed those customarily charged for single tenant buildings within a three-mile radius of the
Lot which are used for purposes similar to the use of the Building by Tenant and in the event that
any capital repair, improvement or replacement to the common areas and facilities of the Building
and the Lot made by Landlord has a useful life of over one year (as determined in accordance with
generally accepted accounting practices consistently applied), then only the amortized cost of such
repair, improvement or replacement over said useful life shall be included in the Annual Lot
Maintenance Charge or the Annual Building Maintenance Charge, as applicable.

     Tenant shall make payments on account of the Annual Maintenance Charge monthly in advance on
the first day of each calendar month during the Term. At the beginning of every fiscal year,
Landlord shall deliver to Tenant its reasonable estimate of the Annual Maintenance Charge (the
“Estimated Annual Maintenance Charge”) for the said fiscal year which estimate may include a
reasonable contingency of up to 5%, and Tenant shall make payments on account of the Annual
Maintenance Charge monthly in advance on the first day of each calendar month during the Term in
the amount of one-twelfth of the Estimated Annual Maintenance Charge. Landlord reserves the right
to reasonably re-estimate and modify the Estimated Annual Maintenance Charge by notice to Tenant
once annually on or about July 1 of each Lease Year (the “Additional Rent Adjustment Date”), and
Tenant’s payments shall thereupon be adjusted accordingly. Not later than sixty (60) days after
the end of each fiscal year 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, the actual Annual Maintenance Charges for the said fiscal year or fraction thereof, and
thereupon any balance owed by Tenant or excess paid by Tenant under this Section shall be paid to
Landlord, or credited to Tenant, as the case may be, on the next rent payment date. Landlord shall furnish Tenant with
copies of all reasonable documentation and records for the Annual Maintenance

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Charges for any fiscal year upon Tenant’s request for the same; provided, however, that Landlord shall not be
required to furnish such copies for any fiscal year if Tenant has not requested such copies within
two (2) years after the expiration of such fiscal year.

     For purposes of this Lease, the first “fiscal year” shall be the annual period commencing on
the Commencement Date and ending on December 31 of the year in which the Commencement Date occurs;
subsequently, the term “fiscal year” shall mean each consecutive annual period thereafter,
commencing on the day following the end of the preceding fiscal year. Landlord shall have the
right from time to time to change the periods of accounting under this Section 4.2.4 to any annual
period other than a fiscal year, and upon any such change all items referred to in this Section
shall be appropriately apportioned. In all Landlord’s Statements rendered under this Section,
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 of Landlord’s Statements shall be
prepared on an accrual basis of accounting.

     Notwithstanding any other provision of this Section 4.2.4, if the Term expires or is
terminated as of a date other than the last day of a fiscal year, then for such fraction of a
fiscal year at the end of the Term, Tenant’s last payment to Landlord under this Section 4.2.4
shall be made on the basis of Landlord’s best estimate of the items otherwise includable in
Landlord’s Statement and shall be made on or before the later of (a) 10 days after Landlord
delivers such estimate to Tenant or (b) the last day of the Term. Landlord shall thereafter
prepare a Landlord’s Statement showing the actual Annual Maintenance Charge for such fiscal year,
as hereinabove provided, and an appropriate payment or refund shall thereafter promptly be made
upon submission of such Landlord’s Statement to Tenant.

     Notwithstanding the foregoing, Landlord hereby agrees that HVAC service and all other
utilities shall be available to Tenant 24 hours per day, seven (7) days per week, subject to the
provisions hereof with respect to loss or interruption of utilities and other services.

     4.2.5 Payments on Account of Taxes, Insurance and Utilities.

     Tenant shall make payments on account of the Annual Tax, Insurance and Utility Charge (as
hereinafter defined) monthly in advance on the first day of each calendar month during the Term,
which payments shall initially be in the amount of the sum of the Initial Tax Charge, the Initial
Insurance Charge and the Initial Utility Charge (the “Estimated Initial Tax, Insurance and Utility
Charges”). At the beginning of every fiscal year, Landlord shall deliver to Tenant its reasonable
estimate of the Annual Tax, Insurance and Utility Charge (“the Estimated Annual Tax, Insurance and
Utility Charge”) for said fiscal year, and, in lieu of payments of one twelfth of the Estimated
Initial Tax, Insurance and Utility Charge, Tenant shall make payments on account of the Annual Tax,
Insurance and Utility Charge monthly in advance on the first day of each calendar month during the
Term in the amount of one-twelfth of the Estimated Annual Tax, Insurance and Utility Charge.
Landlord reserves the right to reasonably re-estimate and modify the Estimated Annual Tax,
Insurance and Utility Charge by notice to Tenant once annually on the Additional Rent Adjustment
Date (as defined in Section 4.2.4 hereof), and Tenant’s payments shall thereupon be adjusted
accordingly.

     Not later than sixty (60) days after the end of each fiscal year during the Term and after
Lease termination, Landlord shall render a 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, the actual Annual Tax, Insurance and Utility Charge for the said
fiscal year or fraction thereof, and thereupon any balance owed by Tenant or excess paid by Tenant
under this Section shall be paid to Landlord, or credited to Tenant, as the case may be, on the
next rent payment date. As used herein, the term “Annual Tax, Insurance and Utility Charge” shall
mean and refer to the amount of funds paid by Tenant pursuant to Section 4.2.1, 4.2.2 and 4.2.3 for
the fiscal year in question for costs actually incurred by Landlord (without
any mark-up for Landlord’s overhead or profit). All payments under this Section shall to the
extent thereof relieve Tenant of its obligations under said Sections 4.2.1, 4.2.2 and 4.2.3 hereof.

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     Landlord shall have the right from time to time to change the periods of accounting under this
Section 4.2.5 to any annual period other than a fiscal year, and upon any such change all items
referred to in this Section shall be appropriately apportioned. In all Landlord’s annual
statements rendered under this Section, 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 such a statement shall be included therein on the basis of Landlord’s estimate, and
with respect thereto Landlord shall render promptly after determination a supplemental statement,
and an appropriate adjustment shall be made according thereto. All of landlord’s statements under
this Section shall be prepared on an accrual basis of accounting.

     Notwithstanding any other provision of this Section 4.2.5, if the Term expires or is
terminated as of a date other than the last day of a fiscal year, then for such fraction of a
fiscal year at the end of the Term, Tenant’s last payment to Landlord under this Section 4.2.5
shall be made on the basis of Landlord’s best estimate of the items otherwise includable in the
annual statement rendered by Landlord under this Section and shall be made on or before the later
of (a) 10 days after Landlord delivers such estimate to Tenant or (b) the last day of the Term,
with an appropriate payment or refund to be made upon submission of Landlord’s statement.

4.3 LATE PAYMENT OF RENT.

     If any installment of rent is paid after the date the same was due, it shall bear interest
from the due date at the prime commercial rate of BankBoston, N.A. or its successor(s), as it may
be adjusted from time to time, plus 4% per annum, but in no event more than the highest rate of
interest allowed by applicable law. Any amounts due under this Section 4.3 shall be Additional
Rent. The foregoing provisions of this Section 4.3 shall not apply to the first two installments
of rent paid after the date the same were due during each twelve consecutive month period during
the Term.

ARTICLE V

TENANT’S ADDITIONAL COVENANTS

5.1 AFFIRMATIVE COVENANTS.

     Tenant covenants at its expense at all times during the Term and for such further time as
Tenant occupies the Premises or any part thereof:

     5.1.1 Perform Obligations.

          To perform promptly all of the obligations of Tenant set forth in this Lease; and to pay when
due the Fixed Rent and Additional Rent and all charges, rates and other sums which by the terms of
this Lease are to be paid by Tenant.

     5.1.2 Occupancy and Use.

          Continuously from the Commencement Date, to use and occupy the Premises only for the Permitted
Use, and from time to time to procure all licenses and permits necessary therefor at Tenant’s sole
expense.

          Without limitation, Tenant shall strictly comply with all federal, state, and municipal laws,
ordinances, and regulations governing the use of Tenant’s laboratory, scientific experimentation
and the generation, storage, containment and disposal of medical waste. Tenant shall be solely
responsible for procuring and complying at all times with any and all necessary permits directly
relating or incident to: the conduct of its office and research activities on the Premises; its
scientific experimentation, transportation, storage, handling, use and disposal of any chemical or
radioactive or bacteriological or pathological substances or organisms or other hazardous wastes or
environmentally dangerous substances or materials or medical waste. Within ten (10) days of a
request by Landlord, which request shall be made not more than once
during each period of twelve (12) consecutive months during the Term hereof, unless otherwise
requested by any mortgagee of Landlord, Tenant shall furnish Landlord with copies of all such
permits which Tenant possesses or has obtained together with a certificate certifying that such

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permits are all of the permits which Tenant possesses or has obtained with respect to the Premises.
Tenant shall be entitled to redact any Confidential Information from the copies of such permits
and accompanying certificates of Tenant. Tenant shall promptly give notice to Landlord of any
warnings or violations relative to the above received from any federal, state, or municipal agency
or by any court of law and shall promptly cure the conditions causing any such violations. Tenant
shall not be deemed to be in default of its obligations under the preceding sentence to promptly
cure any condition causing any such violation in the event that, in lieu of such cure, Tenant shall
contest the validity of such violation by appellate or other proceedings permitted under applicable
law, provided that: (i) any such contest is made reasonably and in good faith, (ii) Tenant makes
provisions, including, without limitation, posting bond(s) or giving other security, acceptable to
Landlord to protect Landlord, the Building and the Lot from any liability, costs, damages or
expenses arising in connection with such violation and failure to cure, (iii) Tenant shall agree to
indemnify, defend (with counsel reasonably acceptable to Landlord) and hold Landlord harmless from
and against any and all liability, costs, damages, or expenses arising in connection with such
condition and/or violation, (iv) Tenant shall promptly cure any violation in the event that its
appeal of such violation is overruled or rejected, and (v) Tenant shall certify to Landlord’s
satisfaction that Tenant’s decision to delay such cure shall not result in any actual or threatened
bodily injury or property damage to Landlord, any tenant or occupant of the Building or the Lot, or
any other person or entity. Landlord agrees that any Confidential Information gained or obtained
by Landlord pursuant to this Section 5.1.2 shall be kept confidential in accordance with Section
10.15 hereof.

     5.1.3 Repair and Maintenance.

          Except as otherwise provided in Article VI, to keep the Premises including, without
limitation, all fixtures and equipment now or hereafter on the Premises, or exclusively serving the
Premises, but excluding the exterior (exclusive of glass and doors) and structural elements of the
Building and the grounds and parking lot, which Landlord shall maintain and repair unless such
repairs are required because of Tenant’s willful misconduct or negligence, in good order, condition
and repair and at least as good order, condition and repair as they are in on the Commencement Date
or may be put in during the Term, reasonable use and wear only excepted; to keep in a safe, secure
and sanitary condition all trash and rubbish temporarily stored at the Premises; and to make all
repairs and replacements and to do all other work necessary for the foregoing purposes whether the
same may be ordinary or extraordinary, foreseen or unforeseen. Tenant shall be responsible for
heating and air-conditioning systems serving the Premises exclusively, and Tenant shall secure, pay
for and keep in force contracts with appropriate and reputable service companies providing for the
regular maintenance of the heating and air-conditioning systems serving the Premises exclusively,
and copies of such contracts shall be furnished to Landlord. It is further agreed that the
exception of reasonable use and wear shall not apply so as to permit Tenant to keep the Premises in
anything less than suitable, tenantlike, and efficient and usable condition considering the nature
of the Premises and the use reasonably made thereof, or in less than good and tenantlike repair.

     5.1.4 Compliance with Law.

          To make all repairs, alterations, additions or replacements to the Premises required by any
law or ordinance or any order or regulation of any public authority other than major capital
repairs, alterations, additions or replacements to the foundations and structural elements of the
Building which are not required because of Tenant’s failure to comply with the provisions of
Section 5.1.3 hereof; to keep the Premises equipped with all safety appliances so required; to pay
all municipal, county, or state taxes assessed against the leasehold interest hereunder, or against
personal property of any kind on or about the Premises; 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.

          Tenant shall not use, generate, manufacture, produce, handle, store, release, discharge or
dispose of in, on, under or about the Premises or transport to or from the Premises, or allow its
employees, agents, contractors, invitees or any other person or entity to do so, any
oil, hazardous or toxic materials or hazardous or toxic wastes or medical waste (collectively,
“hazardous materials”) except to the extent that the following conditions regarding the use,
generation, manufacture, production, handling, storing, releasing, discharging, disposal or

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transport (individually or collectively, the “Use”) of hazardous materials shall be satisfied: (i)
the Use shall be directly related to the operation of Tenant’s business as permitted herein, (ii)
Tenant shall first provide Landlord with the list of the types and quantities of such proposed
hazardous materials which Tenant is required to furnish to the applicable governmental authorities
for purposes of compliance with the Resource Conservation and Recovery Act, as amended (42 U.S.C. §
9601, et seq.) (the “RCRA List”) (or, in the event that the RCRA List ceases to be required
to be filed under such law, a list containing the same information required to be listed on the
RCRA List as of the date hereof), and shall update such list as necessary for continuing accuracy,
and such other information reasonably satisfactory to Landlord as Landlord may reasonably require
concerning such Use, and (iii) such Use shall be in strict compliance (at Tenant’s expense) with
all applicable laws, regulations, licenses and permits. Landlord hereby covenants and agrees that
the information contained in any list, or update thereof, referred to in the foregoing clause (ii)
shall be kept confidential in accordance with Section 10.15 hereof. Notwithstanding the foregoing,
Tenant hereby agrees to consult and coordinate with Landlord prior to transporting any hazardous
materials to or from the Premises whenever (i) such transportation is not of the kind regularly
made during the ordinary course of business by a person or entity operating a laboratory facility
for the Permitted Use or (ii) Tenant has reason to believe that such transportation may result in a
public demonstration, protest or other similar disturbance at the Building or the Lot. If the
transportation, generation, manufacture, production, handling, release, storage, use or disposal of
any hazardous materials anywhere on the Premises in connection with the Tenant’s use of the
Premises results in (1) contamination of the soil, surface or ground water or (2) loss or damage to
person(s) or property, then Tenant agrees to respond in accordance with the following paragraph:

Tenant agrees (i) to notify Landlord immediately of any contamination, claim
of contamination, loss or damage, (ii) after consultation and approval by
Landlord, to clean up the contamination in full compliance with all
applicable statutes, regulations and standards, and (iii) to indemnify,
defend (with counsel acceptable to Landlord) and hold Landlord harmless from
and against any claims, suits, causes of action, costs and fees, including
attorneys’ fees, arising from or connected with any such contamination,
claim of contamination, loss or damage. No consent or approval of Landlord
shall in any way be construed as imposing upon Landlord any liability for
the means, methods, or manner of removal, containment or other compliance
with applicable law for and with respect to the foregoing.

          Tenant shall promptly notify Landlord upon Tenant’s receipt of any inquiry, notice, or threat
to give notice by any government authority or any other third party with respect to any hazardous
materials. Notwithstanding the foregoing, Tenant shall not be liable to Landlord hereunder for any
contamination, claim of contamination, loss or damage arising in connection with hazardous
materials to the extent the same is the result of (A) hazardous materials existing in the Building
and the Lot prior to Tenant’s use or occupancy of the Premises, (B) migration of hazardous
materials from any site onto the Lot not caused by Tenant, (C) the generation, manufacture,
production, handling, release, storage, use or disposal of any hazardous materials at the Building
or the Lot by Landlord, any other tenant or occupant, or any so-called “mid-night dumpers” or (D)
the Use (as defined above in this Section) by any party other than Tenant of hazardous materials at
the Building or the Lot after the date upon which Tenant has completely vacated the same, including
removal of all of its property (to the extent permitted herein) and hazardous materials. Tenant’s
indemnification obligations under this Section shall survive the expiration or earlier termination
of this Lease.

          Prior to vacating the Premises at the expiration of the Term hereof, Tenant at its sole cost
and expense shall provide Landlord with an environmental audit by a qualified environmental
engineering firm satisfactory to Landlord, which audit shall include reasonable subsurface testing
if requested by Landlord. The aforesaid environmental audit shall affirmatively certify that the
Premises are free from any and all contaminants, pollutants, radioactive materials, hazardous
wastes or materials, medical waste, bacteriological agents or organisms which would render the
Premises in violation of M.G.L. c. 21E, the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, 42 U.S.C.

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Section 9602 et seq., or any other applicable laws, rules, regulations or orders, as they may be
amended or supplemented by administrative regulations, from time to time.

          Nothing herein contained shall be construed to limit or impair Tenant’s obligation to comply
with any law, code, rule or regulation which requires Tenant to notify any governmental authority
or any other person concerning the Use (as defined above in this Section) of hazardous materials by
Tenant at the Premises.

          Tenant agrees that, with respect to the Premises, it shall be responsible for compliance with
the Americans with Disabilities Act (42 U.S.C. § 12101 et seq.) and the regulations and
Accessibility Guidelines for Buildings and Facilities issued pursuant thereto (collectively, the
“ADA Requirements”), except to the extent that the base building improvements not performed by
Tenant are subject to ADA Requirements, in which event Landlord shall be responsible for compliance
of the Base Building Improvements therewith. Costs incurred by Landlord with respect to such
compliance shall be added to the Annual Building Maintenance and Operation Charge.

          Tenant covenants and agrees that its use of the Premises shall not cause a discharge of more
than its pro rata share on a square foot basis of the design flow gallonage per day of sanitary
(non-industrial) sewage allowed under the sewage discharge permit(s) 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 therefor,
including without limitation permits from state and local authorities having jurisdiction thereof.

     5.1.5 Tenant’s Work.

          To procure at Tenant’s sole expense all necessary permits and licenses before Tenant
undertakes any work on the Premises; to do all such work in compliance with the applicable
provisions of Sections 3.2.1, 3.3 and 5.2.3 hereof; to do all such work in a good and workmanlike
manner employing materials of good quality and so as to conform with all applicable zoning,
environmental, building, fire, health and other codes, regulations, ordinances and laws and the ADA
Requirements; to furnish to Landlord prior to the commencement of any such work, or any other such
work for which the cost may reasonably be estimated to exceed $100,000, a bond or other security
acceptable to Landlord assuring that any work commenced or continued by Tenant will be completed in
accordance with specifications approved in advance in writing by Landlord; to keep the Premises at
all times free of liens for labor and materials; to employ for such work one or more responsible
contractors whose labor will work without interference with other labor working on the Premises; to
require such contractors employed by Tenant to carry worker’s compensation insurance in accordance
with statutory requirements and comprehensive public liability insurance covering any general
contractors on or about the Premises in amounts that at least equal the limits set forth in Section
1.1 and to submit certificates evidencing such coverage to Landlord prior to the commencement of
such work; and to save Landlord harmless and indemnified from all injury, loss, claims or damage to
any person or property occasioned by or growing out of such work. Notwithstanding any other
provision of this Section 5.1.5 or any other provision of this Lease to the contrary, Landlord
shall not, subject to applicable law, prohibit Tenant from using non-union labor to perform any
work at the Premises, including Tenant’s Work. Without limitation of the foregoing, Landlord shall
not require Tenant’s employees to unionize.

     5.1.6 Indemnity.

          To defend, with counsel approved by Landlord, all actions against Landlord, any partner,
trustee, stockholder, officer, director, employee or beneficiary of Landlord, holders of mortgages
secured by the 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, (including reasonable attorneys’ fees and expenses), causes of action,
suits, claims, demands or judgments of any nature arising from (i) injury to or death of any
person, or damage to or loss of property, on the Premises or on adjoining streets or ways connected
with the use or occupancy thereof by Tenant or its agents, contractors, licensees,

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employees, sublessees or invitees, unless and to the extent caused by the negligence of
Landlord or its servants or agents, (ii) violation of this Lease by Tenant or its agents,
contractors, licensees, employees, sublessees or invitees, or (iii) any act, fault, omission, or
other misconduct of Tenant or its agents, contractors, licensees, employees, sublessees or
invitees.

     5.1.7 Landlord’s Right to Enter.

          To permit Landlord and its agents to enter into the Premises at reasonable times and upon at
least 24 hours’ advance notice (except in case of emergency in which event no prior notice shall be
required) to examine the Premises, make such repairs and replacements as Landlord may elect,
without however, any obligation to do so except as may be otherwise expressly set forth in this
Lease, and show the Premises to prospective purchasers and lenders, and, during the last twelve
months of the Term, to show the Premises to prospective tenants and to keep affixed in suitable
places notices of availability of the Premises. Landlord’s right to enter the Premises in
accordance with the foregoing shall be subject to Landlord’s obligations pursuant to Section 10.15
hereof. Notwithstanding the foregoing, Landlord agrees that in the event that Landlord shows the
Premises to any prospective purchaser or tenant, Landlord shall: (i) provide at least three (3)
days’ notice to Tenant identifying the prospective purchaser or tenant, (ii) only show the Premises
to such purchaser or tenant if Landlord believes in good faith that such person or entity is a bona
fide prospective purchaser or tenant, (iii) conduct such showing in compliance with such reasonable
requests and instructions as Tenant may make for purposes of protecting Tenant’s Confidential
Information.

     5.1.8 Personal Property at Tenant’s Risk.

          All of the furnishings, fixtures, equipment, effects and property of every kind, nature and
description owned or leased by Tenant or by any person 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 (collectively, “Tenant’s Property”), shall, as between the
parties, 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, except that Landlord shall in no event be indemnified or
held harmless or exonerated from any liability to Tenant or to any other person, for any injury,
loss, damage or liability to the extent (i) such injury, loss, damage or liability is the result of
the negligence or willful misconduct of Landlord, its contractors, agents or employees, or (ii)
such indemnification, agreement to hold harmless or exoneration is prohibited by law.

     5.1.9 Payment of Landlord’s Cost of Enforcement.

          To pay on demand Landlord’s expenses, including reasonable attorney’s fees, incurred in
enforcing any obligation of Tenant under this Lease or in curing any default by Tenant under this
Lease as provided in Section 7.4.

     5.1.10 Yield Up.

          Subject to Section 3.3 hereof, at the expiration of the Term or earlier termination of this
Lease: to surrender all keys to the Premises; to remove all of its trade fixtures and personal
property in the Premises; to remove such installations and improvements made by Tenant as Landlord
may request and all Tenant’s signs wherever located; to repair all damage caused by such removal;
and to yield up the Premises (including all installations and improvements made by Tenant except
for trade fixtures and such of said installations or improvements as Landlord shall request Tenant
to remove), broom-clean and in the same good order and repair in which Tenant is obliged to keep
and maintain the Premises by the provisions of this Lease. Subject to Section 3.3 hereof, any
property not so removed shall be deemed abandoned and may be removed and disposed of by Landlord in
such manner as Landlord shall determine and Tenant shall pay Landlord the entire cost and expense
incurred by Landlord in effecting such removal and disposition and in making any incidental repairs
and replacements to the Premises and for use and occupancy during the period after the expiration of the Term and
prior to Tenant’s performance of its obligations under this Section 5.1.10. Tenant shall further

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indemnify Landlord against all loss, cost and damage resulting from Tenant’s failure and delay in
surrendering the Premises as above provided.

     5.1.11 Estoppel Certificate.

          Upon not less than 10 days’ prior notice 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 and that except as stated therein Tenant has no knowledge of any defenses, offsets or
counterclaims against its obligations to pay the Fixed Rent and Additional Rent and any other
charges and to perform its other covenants under this Lease (or, if there have been any
modifications that the Lease is in full force and effect as modified and stating the modifications
and, if there are any defenses, offsets or counterclaims, setting them forth in reasonable detail),
the dates to which the Fixed Rent and Additional Rent and other charges have been paid and a
statement that, to the best of Tenant’s knowledge, Landlord is not in default hereunder (or if in
default, the nature of such default, in reasonable detail) and such other matters reasonably
required by Landlord or any prospective purchaser or mortgagee of the Premises. Any such statement
delivered pursuant to this Section 5.1.11 may be relied upon by any prospective purchaser or
mortgagee of the Premises, or any prospective assignee of any such mortgage.

     5.1.12 Landlord’s Expenses Re Consents.

          To reimburse Landlord promptly on demand for all reasonable legal expenses incurred by
Landlord in connection with all requests by Tenant for consent or approval under this Lease.
Notwithstanding the foregoing, Tenant shall not be liable for any reasonable legal expenses
incurred by Landlord for the first two (2) such requests made by Tenant during each period of
twelve (12) consecutive calendar months during the Term.

     5.1.13 Rules and Regulations.

          To comply with the Rules and Regulations set forth in Exhibit C, as the same may be
amended from time to time by Landlord to provide for the beneficial operation of the Building
and/or Lot, provided that such amendments do not materially interfere with Tenant’s right of use
and enjoyment of the Premises pursuant to this Lease.

     5.1.14 Loading.

          Not to place Tenant’s Property, as defined in Section 5.1.8, upon the Premises so as to exceed
the floor load limits set forth in Exhibit D attached hereto 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 detectable outside of the Building shall be
placed or maintained by Tenant in settings of cork, rubber, spring, or other types of vibration
eliminators sufficient to reduce such vibration or noise to a level reasonably acceptable to
Landlord.

     5.1.15 Holdover.

          To pay to Landlord (i) the greater of twice (a) the then fair market rent as reasonably
determined by Landlord or (b) the total of the Fixed Rent, Additional Rent, and all other payments
then payable hereunder, 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 (ii) all damages sustained by Landlord on account thereof; provided, however, that
any payments made by Tenant under the foregoing clause (i) in excess of the then fair market rent
for the Premises as so reasonably determined by Landlord shall be applied against any damages under
the foregoing clause (ii). The provisions of this subsection shall not operate as a waiver by
Landlord of the right of re-entry provided in this Lease.

5.2 NEGATIVE COVENANTS.

          Tenant covenants at all times during the Term and for such further time as Tenant occupies the
Premises or any part thereof:

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     5.2.1 Assignment and Subletting.

          Not without the prior written consent of Landlord to assign this Lease, 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, except as hereinafter provided; 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 (subject to the provisions of Section
5.1.12 hereof); 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 consistency of the proposed assignee’s or subtenant’s business
with other uses and tenants in the Building. In addition, as to any assignee (but not as to any
sublessee) Landlord’s consent shall be required as to the reasonable creditworthiness of the
proposed assignee in view of market conditions then prevailing for leases having terms and
conditions comparable to this Lease. Landlord’s consent to any assignment or subletting by Tenant
shall not be unreasonably withheld, provided that Tenant is not then in default under this Lease
and that such assignee or subtenant pays therefor the greater of the Fixed Rent, Additional Rent,
and all other payments then payable hereunder, or the then fair market rent for the Premises.
Notwithstanding anything contained in this Lease to the contrary, (w) no transfer, assignment or
subletting shall be consummated on any basis such that the rental or other amounts to be paid by
the occupant, assignee, manager or other transferee thereunder would be based, in whole or in part,
on the income or profits derived by the business activities of such occupant, assignee, manager or
other transferee; (x) Tenant shall not furnish or render any services to an occupant, assignee,
manager or other transferee with respect to whom transfer consideration is required to be paid, or
manage or operate the Premises or any capital additions so transferred, with respect to which
transfer consideration is being paid; (y) Tenant shall not consummate a transfer, assignment or
subletting with any person in which Landlord owns an interest, directly or indirectly (by applying
constructive ownership rules set forth in Section 856(d)(5) of the Internal Revenue Code
(“Revenue Code”); and (z) Tenant shall not consummate a transfer, assignment or subletting
with any person or in any manner that could cause any portion of the amounts received by Landlord
pursuant to this Lease or any sublease, license or other arrangement for the right to use, occupy
or possess any portion of the Premises to fail to qualify as “rents from real property” within the
meaning of Section 856(d) of the Revenue Code, or any similar or successor provision thereto or
which could cause any other income of Landlord to fail to qualify as income described in Section
856(c)(2) of the Revenue Code. If Tenant requests Landlord’s consent to assign this Lease or to
sublet any portion of the Premises, Landlord shall have the option, exercisable by written notice
to Tenant given within 10 days after receipt of such request, to terminate this Lease as of the
date of commencement of the proposed sublease or assignment; provided, however, that Tenant shall
have the right to rescind any such request in the event Landlord elects to so terminate this Lease
by notice given to Landlord within five (5) days after the date of such termination notice from
Landlord, in which event such termination notice shall be of no further force or effect;

     If, at any time during the Term of this Lease, Tenant is:

               (i) a corporation or a trust (whether or not having shares of beneficial interest) and there
shall occur any change in the identity of any of the persons then having power to participate in
the election or appointment of the directors, trustees or other persons exercising like functions
and managing the affairs of Tenant; or

               (ii) a partnership or association or otherwise riot a natural person (and is not a corporation
or a trust) and there shall occur any change in the identity of any of the persons who then are
members of such partnership or association or who comprise Tenant;

Tenant shall so notify Landlord and Landlord may terminate this Lease by notice to Tenant given
within 90 days thereafter if, in Landlord’s reasonable judgment, the credit of Tenant is thereby
impaired. This paragraph shall not apply if the initial Tenant named herein is a
corporation and the outstanding voting stock thereof is listed on a recognized securities exchange.

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     Notwithstanding the foregoing provisions of this Section 5.2.1, Tenant may assign this Lease
or sublet any portion of the Premises without Landlord’s consent to (i) any successor of Tenant
resulting from an acquisition of all or substantially all of Tenant’s assets or a merger or
consolidation of Tenant and (ii) any Affiliate of Tenant (as hereinafter defined) whose net worth
is equal to or greater than the net worth of Tenant as of the date hereof, provided that Tenant
provides Landlord at least thirty (30) days prior notice of such assignment or subletting pursuant
to either of the foregoing clauses (i) or (ii). As used herein, the term “Affiliate of Tenant”
shall mean and refer to any entity controlled by, controlling or under common control with Tenant.

     In the event that any assignee or subtenant pays to Tenant any amounts in excess of the Fixed
Rent, Additional Rent, and all other payments then payable hereunder, or pro rata portion thereof
on a square footage basis for any portion of the Premises (such excess being hereinafter referred
to as “Sublease Profits”), Tenant shall promptly pay fifty percent (50%) of said Sublease Profits
to Landlord as and when received by Tenant after deduction of Tenant’s Sublease Costs (as
hereinafter defined). The term “Sublease Costs” shall mean and refer to Tenant’s reasonable legal,
brokerage and construction costs and expenses incurred in good faith in view of the size and
expected term of any applicable sublease or assignment. Sublease Costs shall be amortized over the
term of the applicable sublease or assignment.

     5.2.2 Nuisance.

          Not to injure, deface or otherwise harm the Premises; nor commit any nuisance; nor permit the
emission of any noise, vibration or odor which is contrary to any law or ordinance; nor make, allow
or suffer any waste; nor make any use of the Premises which is improper, offensive or contrary to
any law or ordinance or which will invalidate any of Landlord’s insurance.

     5.2.3 Installation, Alterations or Additions.

          Subject to the provisions of Section 3.2.1, 3.3 and Section 5.1.5 hereof, not to make any
installations, alterations, or additions in, to or on the Premises (including, without limitation,
buildings, lawns, planted areas, walks, roadways, parking and loading areas, but expressly
excluding the initial Tenant’s Work, provided the same is approved by Landlord, such approval not
to be unreasonably withheld or delayed), nor, except for Tenant’s Work approved by Landlord, to
permit the making of any apertures in the walls, partitions, ceilings or floors without on each
occasion obtaining the prior written consent of Landlord and then only pursuant to plans and
specifications approved by Landlord in advance in each instance.

ARTICLE VI

CASUALTY OR TAKING

6.1 TERMINATION.

     In case during the period which is thirty (30) months prior to the expiration of the Term all
or any substantial part of the Premises or of the Building or of the Lot or any one or more of them
shall be taken by any public authority or for any public use, or shall be destroyed or damaged by
fire or casualty, or by the action of any public authority, or Landlord receives compensable damage
by reason of anything lawfully done in pursuance of public or other authority, (hereinafter
referred to as the “Casualty or Taking”), then this Lease may be terminated at the election of
Landlord. Such election, which may be made notwithstanding the fact that Landlord’s entire
interest may have been divested, shall be made by the giving of notice by Landlord to Tenant within
30 days after the Casualty or Taking.

6.2 RESTORATION.

     If Landlord does not exercise said election (or is not entitled to exercise said election in
the case of a Casualty or Taking occurring more than thirty (30) months prior to the expiration of
the Term of this Lease), this Lease shall continue in force and a just proportion of the rent
reserved, according to the nature and extent of the damages sustained by the Premises, but not in

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excess of an equitable proportion of the net proceeds of insurance recovered by Landlord under the
rental insurance coverage carried pursuant to Section 4.2.2.2, shall be abated from the date of the
Casualty or Taking until the Premises, or what may remain thereof, shall be put by Landlord in
proper condition for use subject to zoning and building laws or ordinances then in existence,
which, unless Landlord has exercised its option to terminate pursuant to Section 6.1, Landlord
covenants to do with reasonable diligence at Landlord’s expense, provided that Landlord’s
obligations with respect to restoration shall not require Landlord to expend more than the net
proceeds of insurance recovered or damages awarded for such Casualty or Taking. “Net proceeds of
insurance recovered or damages awarded” refers to the gross amount of such insurance or damages
less the reasonable expenses of Landlord in connection with the collection of the same, including
without limitation, fees and expenses for legal and appraisal services.

     Notwithstanding the foregoing, in the event that Landlord’s architect reasonably determines
that the Premises will not be repaired or restored (to the extent permitted by the net proceeds of
insurance recovered or damages awarded from such Casualty or Taking) within one year after the
occurrence of such Casualty or Taking then Tenant shall have the right to terminate this Lease by
notice given within thirty (30) days after the date of such determination.

6.3 AWARD.

     Irrespective of the form in which recovery may be had by law, all rights to damages or
compensation shall belong to Landlord in all cases except as set forth below in this Section 6.3.
Tenant hereby grants to Landlord all of Tenant’s rights to such damages and compensation and
covenants to deliver such further assignments thereof as Landlord may from time to time request.
It is agreed and understood, however, that Landlord does not reserve to itself, and Tenant does not
assign to Landlord, any damages payable for (i) movable trade fixtures installed by Tenant or
anybody claiming under Tenant, at its own cost and expense or (ii) relocation expenses or damages
for loss of business (in excess of any such damages attributable to the value of this lease)
recoverable by Tenant from such authority in a separate action.

ARTICLE VII

DEFAULTS

7.1 EVENTS OF DEFAULT.

     (a) If Tenant shall default in the performance of any of its obligations to pay the Fixed Rent
or Additional Rent hereunder and if such default shall continue for 10 days after notice from
Landlord to Tenant (provided, however, that Landlord shall not be required to provide such notice
more than two (2) times in any period of twelve (12) consecutive calendar months) or if within 30
days after notice from Landlord to Tenant specifying any other default or defaults Tenant has not
commenced diligently to correct the default or defaults so specified or has not thereafter
diligently pursued such correction to completion, or (b) if any assignment for the benefit of
creditors shall be made by Tenant, or by any guarantor of Tenant, or (c) if Tenant’s leasehold
interest shall be taken on execution or other process of law in any action against Tenant, or (d)
if a lien or other involuntary encumbrance is filed against Tenant’s leasehold interest, and is not
discharged within thirty (30) days thereafter, or (e) if a petition is filed by Tenant or any
guarantor of Tenant for liquidation, or for reorganization or an arrangement or any other relief
under any provision of the Bankruptcy Code as then in force and effect, or (f) if an involuntary
petition under any of the provisions of said Bankruptcy Code is filed against Tenant or any
guarantor of Tenant and such involuntary petition is not dismissed within ninety (90) days
thereafter, or (g) if Tenant fails to maintain the insurance required under Section 4.2.2.1 hereof,
then, and in any of such cases, Landlord and the agents and servants of Landlord lawfully may, in
addition to and not in derogation of any remedies for any preceding breach of covenant, immediately
or at any time thereafter and without demand or 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 and without
illegal force, 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

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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 of redemption 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.

7.2 REMEDIES.

     In the event that this Lease is terminated under any of the provisions contained in Section
7.1 or shall be otherwise terminated for breach of any obligation of Tenant, Tenant covenants to
pay forthwith to Landlord upon Landlord’s demand, as compensation, the excess of the total rent
reserved for the residue of the Term over the fair market rental value of the Premises for said
residue of the Term. In calculating the rent reserved there shall be included, in addition to the
Fixed Rent and Additional Rent, the value of all other considerations agreed to be paid or
performed by Tenant during said residue. Tenant further covenants (as additional and cumulative
obligations) after any such termination to pay punctually to Landlord all the sums and to 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 pursuant to the next preceding sentence Tenant shall
be credited with any amount paid to Landlord as compensation as in this Section 7.2 provided and
also with the net proceeds of any rent obtained by Landlord by reletting the Premises, after
deducting all of the Landlord’s reasonable expenses in connection with such reletting, including,
without 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 reasonable
judgment considers advisable or necessary to relet the same and (ii) make such alterations, repairs
and decorations in the Premises as Landlord in its reasonable 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.

     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 7.2, Landlord may by notice to Tenant,
at any time after this Lease is terminated under any of the provisions contained in Section 7.1 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 Fixed Rent and Additional Rent accrued in the 12 months ended next prior to such
termination, plus the amount of 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 7.2 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 for 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 than, equal to, or less than the amount of the loss or damages referred to above.

7.3 REMEDIES CUMULATIVE.

     Any and all rights and remedies which either Landlord or Tenant may have under this Lease, and
at law and equity, shall be cumulative and shall not be deemed inconsistent with each other, and
any two or more of all such rights and remedies may be exercised at the same time insofar as
permitted by law.

25

 

7.4 LANDLORD’S RIGHT TO CURE DEFAULTS.

     Landlord may, but shall not be obligated to, cure, at any time, following 10 days’ prior
notice to Tenant, except in cases of emergency when no notice shall be required, any default by
Tenant under this Lease; and whenever Landlord so elects, all costs and expenses incurred by
Landlord, including reasonable attorneys’ fees, in curing a default shall be paid by Tenant to
Landlord as Additional Rent on demand, together with interest thereon at the rate provided in
Section 4.3 from the date of payment by Landlord to the date of payment by Tenant.

7.5 EFFECT OF WAIVERS OF DEFAULT.

     Any consent or permission by Landlord or Tenant to any act omission by the other party which
otherwise would be a breach of any covenant or condition herein, or any waiver by Landlord or
Tenant of the breach of any covenant or condition herein by the other party, shall not in any way
be held or construed (unless expressly so declared) to operate so as to impair the continuing
obligation of any covenant or condition herein, or otherwise, except as to the specific instance,
operate to permit similar acts or omissions.

     The failure of Landlord or Tenant to seek redress for violation of, or to insist upon the
strict performance of, any covenant or condition of this Lease by the other party 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. The
receipt by Landlord, or the payment by Tenant, as the case may be, of rent with knowledge of the
breach of any covenant of this Lease shall not be deemed to have been a waiver of such breach by
Landlord or Tenant, as the case may be. No consent or waiver, express or implied, by Landlord or
Tenant, as the case may be, 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.

7.6 NO ACCORD AND SATISFACTION.

     No acceptance by Landlord of a lesser sum than the Fixed Rent, Additional Rent or any other
charge then due shall be deemed to be other than on account of the earliest installment of such
rent or charge due, unless Landlord elects by notice to Tenant to credit such sum against the most
recent installment due, nor shall any endorsement or statement on any check or any letter
accompanying any check or payment as rent or other charge be deemed an 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.

ARTICLE VIII

MORTGAGES

8.1 RIGHTS OF MORTGAGE HOLDERS.

     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 10.5, 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 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 3.1. Upon entry for the purpose of foreclosure, such holder shall be liable
to perform all of the obligations of Landlord (except for the obligations under Article III),
subject

26

 

to and with the benefit of the provisions of Section 10.5, 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. No Fixed Rent, Additional Rent or any other charge shall be paid more
than 10 days prior to the due dates thereof and payments made in violation of this provision shall
(except to the extent that such payments are actually received by a mortgagee in possession or in
the process of foreclosing its mortgage) be a nullity as against such mortgagee and Tenant shall be
liable for the amount of such payments to such mortgagee.

     The covenants and agreements contained in this Lease with respect to the rights, powers and
benefits of a holder of a mortgage (including, without limitation, the covenants and agreements
contained in this Section 8.1) constitute a continuing offer to any person, corporation or other
entity, which by accepting a mortgage subject to this Lease, assumes the obligations herein set
forth with respect to such holder; such holder is hereby constituted a party of this Lease as an
obligee hereunder to the same extent as though its name were written hereon as such; and such
holder 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 agreement which may be necessary to implement
the provisions of this Section 8.1.

8.2 SUPERIORITY OF LEASE; OPTION TO SUBORDINATE.

     This Lease shall be superior to and shall not be subordinate to any future mortgage or other
voluntary lien or other encumbrance of the Lot and Building; provided, however, that Landlord shall
have the option to subordinate this Lease to any such mortgage of the Lot and Building provided
that Landlord obtains from the holder of record of any existing or future mortgage an agreement
with Tenant by the terms of which such holder will agree (a) to recognize the rights of Tenant
under this Lease, (b) to perform Landlord’s obligations hereunder arising after the date of such
holder’s acquisition of title as hereinafter described, expressly excluding, however, Landlord’s
obligations under Article III of this Lease, and (c) 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, provided that Tenant will agree to recognize the
holder of such mortgage as Landlord in such event, which agreement shall be made expressly to bind
and inure to the benefit of the successors and assigns of Tenant and of the holder and upon anyone
purchasing said Premises at any foreclosure sale. Tenant and Landlord agree to execute and deliver
any appropriate instruments necessary to carry out the agreements contained in this Section 8.2.
Any such mortgage to which this Lease shall subordinate may contain such terms, provisions and
conditions as the holder deems usual or customary.

8.3 LEASE AMENDMENTS.

Tenant agrees to make such changes in this Lease as may be reasonably required by the holder of any
mortgage of which the Premises are a part, or any institution which may purchase all or a
substantial part of Landlord’s interest in the Premises, provided that such changes may not
increase the Fixed Rent or other payments due hereunder or otherwise materially affect the
obligations of Tenant hereunder, and provided further that such changes do not (i) materially
interfere with Tenant’s right of use and enjoyment of the Premises pursuant to this Lease, (ii)
limit, impair or delay Tenant’s rights to sublease or assign all or portion of this Lease pursuant
to Section 5.2.1 hereof, (iii) limit, impair or delay Tenant’s right to obtain a reduction or
abatement of rent pursuant to Section 6.2, (iv) limit, impair or delay Tenant’s right to terminate
this Lease pursuant to Section 6.2 or (v) otherwise unreasonably limit, impair or delay Tenant’s
rights hereunder.

ARTICLE IX

LANDLORD’S ADDITIONAL COVENANTS

9.1 AFFIRMATIVE COVENANTS.

     Landlord covenants at all times during the Term:

27

 

     9.1.1 Perform Obligations.

          To perform promptly all of the obligations of Landlord set forth in this Lease, including,
without limitation, furnishing, through Landlord’s employees or independent contractors, the
services required of Landlord pursuant to this Lease.

     9.1.2 Repairs.

          Except as otherwise provided in Article VI, to make such repairs (the cost of which is to be
included in the Annual Maintenance Charge) to the roof, exterior walls, exterior windows and
waterproofing, floor slabs, other structural components, parking areas, walks, landscaping,
courtyard and any other common areas and facilities of the Building as may be necessary to keep
them in good, serviceable and neat condition. Landlord shall be responsible for the maintenance
and repair of the heating and air-conditioning systems and the components thereof not exclusively
serving the Premises, the costs of which shall be included as part of the Annual Building
Maintenance and Operation Charge.

     9.1.3 Compliance with Law.

          To make all repairs, alterations, additions or replacements to the Building or the Lot (the
costs of which are to be included in the Annual Maintenance Charge) required by any law, ordinance
or order or regulation of any public authority including repairs, alterations, additions or
replacements to the foundations and structural elements of the Building, except as required because
of Tenant’s failure to comply with the provisions of Section 5.1.3 hereof; to keep the Building
equipped with all safety appliances so required (the costs of which are to be included in the
Annual Maintenance Charge); subject to Section 4.2.1, to pay all municipal, county, or state taxes
assessed against the Building or the Lot, or against Landlord’s personal property of any kind on or
about the Building or the Lot; 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 Building or the Lot, including the ADA Requirements (as defined in
Section 5.1.4 hereof) and any codes, regulations, ordinances or laws relating to hazardous
materials (as defined in Section 5.1.4), subject to, and without limitation of, Tenant’s
obligations with respect to such codes, regulations, ordinances or laws. The costs incurred by
Landlord in connection with the foregoing compliance obligations shall be included in the Annual
Maintenance Charge. All of the foregoing covenants and obligations are subject to, and without
limitation of, all of Tenant’s obligations under this Lease, including, without limitation, those
set forth in Sections 4.2 and 5.1.4.

     9.1.4 Indemnity.

          To defend, with counsel reasonably approved by Tenant, all actions against Tenant, any
partner, trustee, stockholder, officer, director, employee or beneficiary of Tenant (“Tenant’s
Indemnified Parties”) with respect to, and to pay, protect, indemnify and save harmless, to the
extent permitted by law, all Tenant’s 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 to which any of Tenant’s Indemnified
Parties is subject arising from and to the extent of any negligent or willful act, fault, omission,
or other misconduct of Landlord or its agents, contractors or employees.

     9.1.5 Estoppel Certificate.

          Upon not less than 10 days’ prior notice by Tenant, to execute, acknowledge and deliver to
Tenant a statement in writing certifying that this Lease is unmodified and in full force
and effect and that except as stated therein Landlord has no knowledge of any defenses,
offsets or counterclaims against its obligations under this Lease (or, if there have been any
modifications that the Lease is in full force and effect as modified and stating the modifications
and, if there are any defenses, offsets or counterclaims, setting them forth in reasonable detail),
the dates to which the Fixed Rent and Additional Rent and other charges have been paid and a
statement that, to the best of Landlord’s knowledge, Tenant is not in default hereunder (or if in
default, the nature of such default, in reasonable detail) and such other matters reasonably

28

 

required by Tenant or any prospective assignee of Tenant. Any such statement delivered pursuant to
this Section 9.1.5 may be relied upon by any prospective assignee.

     9.1.6 [Intentionally omitted]

     9.1.7 Utilities.

          Subject to Section 4.2.3 hereof, to bring (or cause to brought) utilities for the Premises to
the Utility Switching Points at Landlord’s sole cost and expense.

ARTICLE X

MISCELLANEOUS PROVISIONS

10.1 NOTICES FROM ONE PARTY TO THE OTHER.

     All notices required or permitted hereunder shall be in writing and addressed, if to the
Tenant, at the Original Address of Tenant 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 have last designated by notice in writing to Tenant. Any notice
shall be deemed duly given if mailed to such address postage prepaid, registered or certified mail,
return receipt requested, when deposited with the U.S. Postal Service, or if delivered by a
recognized courier service (e.g. Federal Express) when deposited with such courier service, or if
delivered to such address by hand, when so delivered.

10.2 QUIET ENJOYMENT.

     Landlord agrees that upon Tenant’s paying the rent and performing and observing the terms,
covenants, conditions and provisions on its part to be performed and observed, Tenant shall and may
peaceably and quietly have, hold and enjoy the Premises during the Term without any manner of
hindrance or molestation from Landlord or anyone claiming under Landlord, subject, however, to the
terms of this Lease.

10.3 EASEMENTS; CHANGES TO LOT LINES.

     Landlord reserves the right, from time to time, to grant easements affecting the Premises or
the Building or the Lot and to change or alter existing boundaries of the Lot for purpose of
developing and using the Lot so long as such easements or such changes or alterations to existing
boundaries of the Lot do not materially interfere with Tenant’s use of the Premises, and to enter
upon the Premises for purposes of constructing and maintaining any pipes, wires and other
facilities serving any portion of the Lot or of the Building, subject to the terms of Section 5.1.7
hereof.

10.4 LEASE NOT TO BE RECORDED.

     Neither party shall record this Lease. Both parties shall execute and deliver a notice of
this Lease in such form, if any, as may be permitted by applicable statute. If this Lease is
terminated before the Term Expiration Date the parties shall execute, deliver and record an
instrument acknowledging such fact and the actual date of termination of this Lease, and Tenant
hereby appoints Landlord its attorney-in-fact, coupled with an interest, with full power of
substitution to execute such instrument.

10.5 BIND AND INURE; LIMITATION OF LANDLORD’S LIABILITY.

     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. No
owner of the Premises shall be liable under this Lease except for breaches of Landlord’s
obligations occurring while owner of the Premises. The obligations of Landlord shall be binding
upon the assets of Landlord which comprise the Premises but not upon other assets of Landlord. No
partner, trustee, stockholder, officer, director, employee or beneficiary (or the partners,
trustees, stockholders, officers, directors or employees of any such beneficiary) of Landlord shall

29

 

be personally liable under this Lease and Tenant shall look solely to Landlord’s interest in the
Premises in pursuit of its remedies upon an event of default hereunder, and the general assets of
the partners, trustees, stockholders, officers, employees or beneficiaries (and the partners,
trustees, stockholders, officers, directors or employees of any such beneficiary) of Landlord shall
not be subject to levy, execution or other enforcement procedure for the satisfaction of the
remedies of Tenant; provided that the foregoing provisions of this sentence shall not constitute a
waiver of any obligation evidenced by this Lease and provided further that the foregoing provisions
of this sentence shall not limit the right of Tenant to name Landlord or any individual partner or
trustee thereof as part defendant in any action or suit in connection with this Lease so long as no
personal money judgment shall be asked for or taken against any individual partner, trustee,
stockholder, officer, employee or beneficiary of Landlord.

10.6 ACTS OF GOD.

     In any case where either party hereto is required to do any act, delays caused by or resulting
from the occurrence of acts of God, labor disputes, fire, unusual delays in deliveries, unavoidable
casualties or other causes beyond the reasonable control of the party claiming such delay 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.

10.7 LANDLORD’S DEFAULT.

     Landlord shall not be deemed to be in default in the performance of any of its obligations
hereunder unless it shall fail to perform such obligations and such failure shall continue for a
period of 30 days following receipt of notice from Tenant or such additional time as is reasonably
required to correct any such default after notice has been given by Tenant to Landlord specifying
the nature of Landlord’s alleged default. Landlord shall not be liable in any event for incidental
or consequential damages to Tenant by reason of any default by Landlord hereunder, whether or not
Landlord is notified that such damages may occur. Except as expressly set forth in Section 6.2
hereof, Tenant shall have no right to terminate this Lease for any default by Landlord hereunder
and no right, for any such default, to offset or counterclaim against any rent due hereunder.

     Notwithstanding the foregoing, if any repairs to the Premises or any Building systems that
serve the Premises exclusively that Landlord is required by this Lease to perform are not performed
within thirty (30) days after notice from Tenant (or such longer period as may be reasonably
required in the event that any such repair, maintenance, cleaning or lighting cannot be completed
within said thirty (30) day period), Tenant shall have the right to perform such obligation of
Landlord. If Tenant performs any such obligation of Landlord, Landlord shall pay to Tenant the
reasonable cost thereof within thirty (30) days after notice from Tenant, provided, however, that
in no event shall Tenant have the right to offset or deduct the amount thereof against any payment
of rent due hereunder.

     If an emergency occurs where a repair is required to be done to the Premises or any Building
systems that serve the Premises exclusively immediately in order to avoid imminent danger to
persons or material damage to the Premises, Tenant shall have the right to self-help consistent
with the immediately preceding grammatical paragraph of this Section 10.7 after giving Landlord
only such notice as is reasonable under the circumstances, provided, however, that formal notice
shall be promptly given thereafter. However, the right of self-help afforded to Tenant in this
Section 10.7 shall be carefully and judiciously exercised by Tenant, it being understood and agreed
that except in the case of an emergency, Landlord shall be given
sufficient opportunity to take the action required of Landlord to avoid such default, in order
to avoid any conflict with respect to whether or not self-help should have been availed of by
Tenant, or with respect to the reasonableness of the expenses incurred by Tenant.

10.8 BROKERAGE.

     Each party warrants and represents to the other party that it has had no dealings with any
broker or agent in connection with this Lease other than Richards Barry Joyce & Partners and
CBRE/Lynch Murphy Walsh Advisors (“Brokers”) and covenants to defend with counsel

30

 

reasonably approved by such other party, hold harmless and indemnify such other party from and against any and
all cost, expense or liability arising from any breach of the foregoing warranty and
representation. Landlord shall pay Brokers pursuant to separate agreements between Landlord and
Brokers.

10.9 APPLICABLE LAW AND CONSTRUCTION.

     This Lease shall be governed by and construed in accordance with the laws of the state in
which the Premises are located. 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 prior 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.

     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 “Tenant” 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.

10.10 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 delivered
to each of them.

10.11 INTENTIONALLY OMITTED.

10.12 OPTIONS TO EXTEND.

     (a) Tenant shall have two (2) options to extend the Term of this Lease (the “Options to
Extend”) for successive periods of five (5) years each (the “Extension Periods”), subject to and on
the terms set forth herein. Tenant may only exercise the Options to Extend with respect to the
entire Premises. If Tenant shall desire to exercise any Option to Extend, it shall give Landlord a
notice (the “Inquiry Notice”) of such desire not later than fifteen (15) months prior to the
expiration of the Initial Term of this Lease or the preceding Extension Period, as the case may be.
Thereafter, the Fair Market Rent (as defined in Subsection (c) below) for the applicable Extension
Period shall be determined in accordance with Subsection (d) below. After the applicable Fair
Market Rent has been so determined, Tenant shall exercise each Option to Extend by giving Landlord notice (the “Exercise Notice”) of its election to do so not later
than twelve (12) months prior to the expiration of the Initial Term of this Lease, or the preceding
Extension Period, as the case may be. If Tenant fails to timely give either the Inquiry Notice or
the Exercise Notice to Landlord with respect to any Option to Extend, Tenant shall be conclusively
deemed to have waived such Option to Extend hereunder.

     (b) Notwithstanding any contrary provision of this Lease, each Option to Extend and any
exercise by Tenant thereof shall be void and of no force or effect unless on the dates Tenant gives
Landlord its Inquiry Notice and Exercise Notice for each Option to Extend and on the date of
commencement of the each Extension Period (i) this Lease is in full force and effect, (ii) there

31

 

is no Event of Default of Tenant under this Lease, and (iii) Tenant has not assigned or subleased (or
agreed to assign or sublease) more than fifty percent (50%) of the rentable floor area of the
Premises.

     (c) All of the terms, provisions, covenants, and conditions of this Lease shall continue to
apply during each Extension Period, except that the Annual Fixed Rent Rate during each Extension
Period (the “Extension Rent”) shall be equal to the fair market rent for the Premises determined as
of the date twelve (12) months prior to expiration of the Initial Term or the preceding Extension
Period, as the case may be, in accordance with the procedure set forth in Subsection (d) below (the
“Fair Market Rent”).

     (d) The Fair Market Rent for each Extension Period shall be determined as follows: Within five
(5) days after Tenant gives Landlord its Inquiry Notice with respect to any Option to Extend,
Landlord shall give Tenant notice of Landlord’s determination of the Fair Market Rent for the
applicable Extension Period. Within ten (10) days after Tenant receives such notice, Tenant shall
notify Landlord of its agreement with or objection to Landlord’s determination of the Fair Market
Rent, whereupon the Fair Market Rent shall be determined by arbitration conducted in the manner set
forth below. If Tenant does not notify Landlord within such ten (10) day period of Tenant’s
agreement with or objection to Landlord’s determination of the Fair Market Rent, then the Fair
Market Rent for the applicable Extension Period shall be deemed to be Landlord’s determination of
the Fair Market Rent as set forth in the notice from Landlord described in this subsection.

     (e) If Tenant notifies Landlord of Tenant’s objection to Landlord’s determination of Fair
Market Rent under the preceding subsection, such notice shall also set forth a request for
arbitration and Tenant’s appointment of a commercial real estate broker having at least ten (10)
years experience in the commercial leasing market in the City of Cambridge, Massachusetts (an
“Arbitrator”). Within five (5) days thereafter, Landlord shall by notice to Tenant appoint a
second Arbitrator. Each Arbitrator shall be advised to determine the Fair Market Rent for the
applicable Extension Period within thirty (30) days after Landlord’s appointment of the second
Arbitrator. On or before the expiration of such thirty (30) day period, the two Arbitrators shall
confer to compare their respective determinations of the Fair Market Rent. If the difference
between the amounts so determined by the two Arbitrators is less than or equal to ten percent (10%)
of the lower of said amounts then the final determination of the Fair Market Rent shall be equal to
the average of said amounts. If such difference between said amounts is greater than ten percent
(10%), then the two arbitrators shall have ten (10) days thereafter to appoint a third Arbitrator
(the “Third Arbitrator”), who shall be instructed to determine the Fair Market Rent for the
applicable Extension Period within ten (10) days after its appointment by selecting one of the
amounts determined by the other two Arbitrators. Each party shall bear the cost of the Arbitrator
selected by such party. The cost for the Third Arbitrator, if any, shall be shared equally by
Landlord and Tenant.

10.13 INTENTIONALLY OMITTED.

10.14 PARKING.

     Commencing as of the Commencement Date, Tenant shall be obligated to lease Tenant’s Parking
Spaces in the Garage and to pay as Additional Rent monthly the then-fair market value (estimated to
be $215 per space per month as of the Commencement Date for Garage parking spaces) for each of such
parking spaces. All parking spaces leased hereby may only be utilized by Tenant’s employees,
visitors, sublessees or assignees, visiting or working at the Premises. Tenant shall have the right to lease from Landlord such parking spaces prior to the Commencement
Date on the terms set forth herein. Landlord shall have the right, from time to time, to relocate,
on a temporary basis as may be necessary to effect repairs and improvements to the Garage, parking
spaces located in the Garage to another location within 1000 feet of the Lot, provided that in each
instance such other location may be lawfully used for accessory parking, and provided further that
the monthly rent to be paid by Tenant for each temporarily relocated parking space shall be an
amount equal to the fair market value thereof but in no event more than the rent then being paid by
Tenant for a parking space in the Garage. If such relocation is required in connection with
repairs to the Garage, Landlord agrees to diligently pursue completion of such repairs.

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10.15 CONFIDENTIAL INFORMATION.

     Landlord hereby agrees that any and all knowledge, information, data, materials, trade
secrets, and other work product of a confidential nature gained, obtained, derived, produced,
generated or otherwise acquired by Landlord with respect to Tenant’s business (collectively
“Confidential Information”) shall be kept confidential. Landlord shall use diligent efforts to
ensure that no Confidential Information is revealed, divulged, communicated, related, or described
to any person or entity without the written consent of Landlord, except as may be required by
applicable law.

10.16 SIGNAGE.

     Tenant shall be permitted, at its sole cost and expense, to install and maintain signs on the
exterior of the Building which read “Vertex” (or something similar reasonably approved by
Landlord), provided that: (i) the size, location, quality, color and style of such signs shall be
subject to Landlord’s approval, such approval not to be unreasonably withheld or delayed, (ii) such
signs shall be subject to limitations of applicable law, including, without limitation, the
Cambridge Zoning By-Law, as amended from time to time and (iii) Tenant shall be entitled to no more
than Tenant’s Proportionate Fraction of signage rights for the Building. Tenant shall secure all
permits necessary for the installation of such signs at its sole cost and expense. Upon the
expiration or sooner termination of the Term of this Lease, Tenant shall remove such signs and
repair any damage resulting therefrom at Tenant’s sole cost and expense.

     WITNESS the execution hereof under seal on the day and year first above written.

	 	 	 	 	 
	LANDLORD:                    	BMR-21 ERIE STREET LLC

 	 
	 	By:  	/s/ GARY KREITZER
 	 
	 	Its:	Executive Vice President 	 
	 	hereunto duly authorized 	 
	 
	TENANT:                        	VERTEX PHARMACEUTICALS INCORPORATED

 	 
	 	By:  	/s/ KENNETH S. BOGER
 	 
	 	Its:	  Senior Vice President and General Counsel 	 
	 	hereunto duly authorized 	 
	 

33EXHIBIT 4.3 

[FORM OF WARRANT AGREEMENT] 

GSC ACQUISITION COMPANY 

and 

AMERICAN STOCK TRANSFER & TRUST COMPANY,
as Warrant Agent 

  

_______________________________ 

  

WARRANT AGREEMENT 

Dated as of [ ], 2007

  

 

 

	
WARRANT AGREEMENT
        
	
TABLE OF CONTENTS
        
	 

        	 
        	 

        	 
        	 

        	 
        	
Page
        
	
SECTION 1. 
        	 
        	 

        	 
        	
Appointment of Warrant Agent
        	 
        	
1
        
	
SECTION 2. 	 
        	 

        	 
        	
Warrant Certificates
        	 
        	
1
        
	
SECTION 3. 
        	 
        	 

        	 
        	
Execution of Warrant Certificates
        	 
        	
1
        
	
SECTION 4.	 
        	 

        	 
        	
Registration and Countersignature
        	 
        	
2
        
	
SECTION 5.
        	 
        	 

        	 
        	
Registration of Transfers and Exchanges; Transfer Restrictions
        	 
        	
2
        
	
SECTION 6.
        	 
        	 

        	 
        	
Terms of Warrants
        	 
        	
4
        
	 

        	 
        	
(a)
        	 
        	
Exercise Price and Exercise Period
        	 
        	
4
        
	 

        	 
        	
(b)
        	 
        	
Redemption of Warrants
        	 
        	
5
        
	 

        	 
        	
(c)
        	 
        	
Exercise Procedure
        	 
        	
5
        
	 

        	 
        	
(d)
        	 
        	
Registration Requirement
        	 
        	
7
        
	 

        	 
        	
(e)
        	 
        	
Expiry Upon Liquidation of Trust Account
        	 
        	
7
        
	
SECTION 7.
        	 
        	 

        	 
        	
Payment of Taxes
        	 
        	
7
        
	
SECTION 8.
        	 
        	 

        	 
        	
Mutilated or Missing Warrant Certificates
        	 
        	
7
        
	
SECTION 9.
        	 
        	 

        	 
        	
Reservation of Warrant Shares
        	 
        	
8
        
	
SECTION 10.
        	 
        	 

        	 
        	
Obtaining Stock Exchange Listings
        	 
        	
8
        
	
SECTION 11.
        	 
        	 

        	 
        	
Adjustment of Number of Warrant Shares
        	 
        	
8
        
	 

        	 
        	
(a)
        	 
        	
Adjustment for Change in Capital Stock
        	 
        	
9
        
	 

        	 
        	
(b)
        	 
        	
Adjustment for Rights Issue
        	 
        	
9
        
	 

        	 
        	
(c)
        	 
        	
Adjustment for Other Distributions
        	 
        	
10
        
	 

        	 
        	
(d)
        	 
        	
Adjustment for Common Stock Issue
        	 
        	
11
        
	 

        	 
        	
(e)
        	 
        	
Adjustment for Convertible Securities Issue
        	 
        	
12
        
	 

        	 
        	
(f)
        	 
        	
Adjustment for Tender or Exchange Offer
        	 
        	
13
        
	 

        	 
        	
(g)
        	 
        	
Consideration Received
        	 
        	
14
        
	 

        	 
        	
(h)
        	 
        	
Defined Terms; When De Minimis Adjustment May Be Deferred
        	 
        	
15
        
	 

        	 
        	
(i)
        	 
        	
When No Adjustment Required
        	 
        	
15
        
	 

        	 
        	
(j)
        	 
        	
Notice of Adjustment
        	 
        	
16
        
	 

        	 
        	
(k)
        	 
        	
Notice of Certain Transactions
        	 
        	
16
        
	 

        	 
        	
(l)
        	 
        	
Reorganization of Company
        	 
        	
16
        
	 

        	 
        	
(m)
        	 
        	
Warrant Agent’s Disclaimer
        	 
        	
17
        
	 

        	 
        	
(n)
        	 
        	
When Issuance or Payment May Be Deferred
        	 
        	
17
        
	 

        	 
        	
(o)
        	 
        	
Adjustment in Exercise Price
        	 
        	
18
        
	 

        	 
        	
(p)
        	 
        	
Form of Warrants
        	 
        	
18
        
	 

        	 
        	
(q)
        	 
        	
Other Dilutive Events
        	 
        	
18
        
	
SECTION 12.
        	 
        	
Fractional Interests
        	 
        	
19
        
	
SECTION 13.
        	 
        	
Notices to Warrant Holders
        	 
        	
19
        
	
SECTION 14.
        	 
        	
Merger, Consolidation or Change of Name of Warrant Agent
        	 
        	
20
        
	
SECTION 15.
        	 
        	
Warrant Agent
        	 
        	
21
        
	
SECTION 16.
        	 
        	
Change of Warrant Agent
        	 
        	
24
        
	
SECTION 17.
        	 
        	
Notices to Company and Warrant Agent
        	 
        	
24
        
	
SECTION 18.
        	 
        	
Supplements and Amendments
        	 
        	
25
        

i 

	
SECTION 19.
        	 
        	
Successors
        	 
        	
25
        
	
SECTION 20.
        	 
        	
Termination
        	 
        	
25
        
	
SECTION 21.
        	 
        	
Governing Law
        	 
        	
25
        
	
SECTION 22.
        	 
        	
Benefits of This Agreement
        	 
        	
26
        
	
SECTION 23.
        	 
        	
Counterparts
        	 
        	
26
        
	
SECTION 24.
        	 
        	
Force Majeure
        	 
        	
26
        
	 	 	 	 	 
	
Exhibit A
        	 
        	
Form of Warrant Certificate
        	 
        	 

        
	
Exhibit B
        	 
        	
Legend
        	 
        	 

        

ii

     WARRANT AGREEMENT dated as of [ ], 2007, between GSC Acquisition Company, a Delaware corporation (the “Company”), and
American Stock Transfer & Trust Company, a New York corporation, as Warrant Agent (the “Warrant Agent”). 

     WHEREAS, the Company proposes to issue (i) 4,000,000 warrants to be offered in a private placement bearing the legend set forth in Exhibit B hereto (the “Founder’s Warrants”), and (ii) up to 25,156,250 warrants to be offered pursuant to a registration statement filed with the Securities and Exchange Commission (the “Public Warrants” and together with the Founder’s Warrants, the “Warrants”), which in each case entitle the holders
thereof to purchase shares of common stock of the Company, $0.001 par value per share (“Common Stock,” and the Common Stock issuable on exercise of the Warrants, the
“Warrant Shares”); 

     WHEREAS, the Company desires the Warrant Agent to act on behalf of the Company, and the Warrant Agent is willing so to act, in connection with the issuance, transfer, exchange and exercise of Warrants
and other matters as provided herein; 

     NOW, THEREFORE, in consideration of the premises and the mutual agreements herein set forth, the parties hereto agree as follows: 

     SECTION 1. Appointment of Warrant Agent.  The Company hereby appoints the Warrant Agent to act as agent for the Company in accordance with the instructions set forth hereinafter in this Agreement, and
the Warrant Agent hereby accepts such appointment. 

     SECTION 2. Warrant Certificates. The certificates evidencing the Warrants (the “Warrant Certificates”) to be delivered
pursuant to this Agreement shall be in registered form only and shall be substantially in the form set forth in Exhibit A attached hereto. 

     SECTION 3. Execution of Warrant Certificates.  Warrant Certificates shall be signed on behalf of the Company by its Chairman of the Board or its President or Chief Executive Officer or a Vice
President and by its Secretary or an Assistant Secretary. Each such signature upon the Warrant Certificates may be in the form of a facsimile signature of the present or any future Chairman of the Board, President, Chief Executive Officer, Vice
President, Secretary or Assistant Secretary and may be imprinted or otherwise reproduced on the Warrant Certificates and for that purpose the Company may adopt and use the facsimile signature of any person who shall have been Chairman of the Board,
President, Chief Executive Officer, Vice President, Secretary or Assistant Secretary, notwithstanding the fact that at the time the Warrant Certificates shall be countersigned and delivered or disposed of he or she shall have ceased to hold such
office. 

     In case any officer of the Company who shall have signed any of the Warrant Certificates shall cease to be such officer before the Warrant Certificates so signed shall have been countersigned by the
Warrant Agent, or disposed of by the Company, such Warrant Certificates nevertheless may be countersigned and delivered or disposed of as though such person had not ceased to be such officer of the Company; and any Warrant Certificate may be signed
on behalf of the Company by any person who, at the actual date of the execution of such Warrant Certificate, shall be a proper officer of the Company to sign such Warrant Certificate,

although at the date of the execution of this Warrant Agreement any such person was not such officer. 

     Warrant Certificates shall be dated the date of countersignature by the Warrant Agent.

     SECTION 4. Registration and Countersignature. The Warrant Agent, on behalf of the Company, shall hold the Founder’s Warrants unnumbered and unregistered and the Public Warrants pre-numbered and
unregistered. 

     Warrant Certificates shall be countersigned by the Warrant Agent and shall not be valid for any purpose unless so countersigned.  The Warrant Agent shall, upon written instructions of the Chairman of
the Board, the President or Chief Executive Officer, a Vice President, the Treasurer or the Chief Financial Officer of the Company, countersign, issue and deliver Warrants as provided in this Agreement. 

     The Company and the Warrant Agent may deem and treat the registered holder(s) of the Warrant Certificates as the absolute owner(s) thereof (notwithstanding any notation of ownership or other writing
thereon made by anyone), for all purposes, and neither the Company nor the Warrant Agent shall be affected by any notice to the contrary. 

     SECTION 5. Registration of Transfers and Exchanges; Transfer Restrictions. The Warrant Agent shall from time to time, subject to the limitations of this Section 5, register the transfer of any
outstanding Warrant Certificates upon the records to be maintained by it for that purpose, upon surrender thereof duly endorsed or accompanied (if so required by the Warrant Agent) by a written instrument or instruments of transfer in form
satisfactory to the Warrant Agent, duly executed by the registered holder or holders thereof or by the duly appointed legal representative thereof or by a duly authorized attorney.  Upon any such registration of transfer, a new Warrant Certificate
shall be issued to the transferee(s) and the surrendered Warrant Certificate shall be cancelled by the Warrant Agent. Cancelled Warrant Certificates shall thereafter be disposed of by the Warrant Agent in its customary manner. 

     The Founder’s Warrants may not be sold or transferred prior to the date upon which the Company completes an acquisition, through a merger, capital stock exchange, asset acquisition, stock
purchase, reorganization or other similar business combination, of one or more businesses or assets in the energy industry (its “Initial Business Combination”) (such date,
the “Transfer Restriction Termination Date”) except to a Permitted Transferee who agrees in writing with the Company to be subject to such transfer restrictions. As used
herein, “Permitted Transferee” means (a) any officer, director of employee of the Company; or (b) any other Person associated with GSC Group as such term is defined in the
registration statement relating to the final prospectus relating to the offering of Public Warrants filed with the Securities and Exchange Commission.

     The holders of any Founder’s Warrant or Warrant Shares issued upon exercise of any Founder’s Warrant further agree prior to any transfer of such securities, to give written 

2

notice to the Company expressing its desire to effect such transfer and describing briefly the proposed transfer. Upon receiving such notice, the Company shall present copies thereof to its counsel and the holder agrees not to
make any disposition of all or any portion of such securities unless and until: 

     (a) there is then in effect a registration statement under the Securities Act covering such proposed disposition and such disposition is made in accordance with such registration statement, in which
case the legends set forth in Exhibit B or Section 6(c) hereof, as the case may be (collectively the “Legends”) with respect to such securities sold pursuant to such registration statement shall be removed; or 

     (b) if reasonably requested by the Company, (A) the holder shall have furnished the Company with an opinion of counsel, reasonably satisfactory to the Company, that such disposition will not require
registration of such Securities under the Securities Act, (B) the Company shall have received customary representations and warranties regarding the transferee that are reasonably satisfactory to the Company signed by the proposed transferee and (C)
the Company shall have received an agreement by such transferee to the restrictions contained in the Legends. 

     Each Public Warrant shall initially be issued together with one share of Common Stock as a unit (a “Unit”). The shares of
Common Stock and Public Warrants comprising a Unit shall not be separately transferable before the later of (i) five Business Days following the earlier to occur of the expiration of the underwriters’ over-allotment option included in the
underwriting agreement with respect to the publicly offered Units and the exercise of such option in full and (ii) the date on which the Company has filed a Form 8-K with the Securities and Exchange Commission containing an audited balance sheet
reflecting the Company’s receipt of the gross proceeds of the offering of the Units and has issued a press release announcing when such separate trading will begin (the later of such dates, the “Detachment
Date”).  Prior to the Detachment Date, Public Warrants may be transferred or exchanged only together with the Unit in which such Public Warrant is included, and only for the purpose of effecting, or in
conjunction with, a transfer or exchange of such Unit.  Furthermore, prior to the Detachment Date, each transfer of a Public Unit on the register relating to such Units shall operate also to transfer the Public Warrants included in such Unit.

     Subject to the terms of this Agreement, Warrant Certificates may be exchanged at the option of the holder(s) thereof, when surrendered to the Warrant Agent at its principal corporate trust office,
which is currently located at the address listed in Section 17 hereof, for another Warrant Certificate or other Warrant Certificates of like tenor and representing in the aggregate a like number of Warrants.  Any holder desiring to exchange a
Warrant Certificate shall deliver a written request to the Warrant Agent, and shall surrender, duly endorsed or accompanied (if so required by the Warrant Agent) by a written instrument or instruments of transfer in form satisfactory to the Warrant
Agent, the Warrant Certificate or Certificates to be so exchanged.  Warrant Certificates surrendered for exchange shall be cancelled by the Warrant Agent. Such cancelled Warrant Certificates shall then be disposed of by such Warrant Agent in its
customary manner. 

3

     The Warrant Agent is hereby authorized to countersign, in accordance with the provisions of this Section 5 and of Section 4 hereof, the new Warrant Certificates required pursuant to the provisions of
this Section 5. 

     SECTION 6. Terms of Warrants. 

     (a) Exercise Price and Exercise Period. 

     The initial exercise price per share at which Warrant Shares shall be purchasable upon the exercise of Warrants (the “Exercise Price”) shall be $6.00 per share, and each Warrant shall be initially exercisable to purchase one share of Common Stock. 

     Subject to the terms of this Agreement (including without limitation Section 6(d) below), each Warrant holder shall have the right, which may be exercised commencing at the opening of business on the
first day of the applicable Warrant Exercise Period set forth below and until 5:00 p.m., New York City time, on the last day of such Warrant Exercise Period, to receive from the Company the number of fully paid and nonassessable Warrant Shares which
the holder may at the time be entitled to receive on exercise of such Warrants and payment of the Exercise Price then in effect for such Warrant Shares. No adjustments as to dividends will be made upon exercise of the Warrants. 

     The “Warrant Exercise Period” shall commence (subject to Section 6(d) below), on the later of: 

     (A) the date that is 13 months after the closing of the sale of the Warrants and 

     (B) the date on which the Company completes its Initial Business Combination

     and shall end on the earlier of: 

     (i) the date that is four years from the date of the final prospectus for the offering of the Public Warrants; and 

     (ii) the Business Day preceding the date on which such Warrants are redeemed pursuant to Section 6(b) below or expire pursuant to Section 6(e) below. 

     The “Closing Price” of the Common Stock on any date of determination means; 

	
(i)	
the closing sale price for the regular trading session (without considering after hours or other trading outside regular trading session hours) of the Common Stock (regular way) on the American Stock Exchange on that date (or, if
no closing price is reported, the last reported sale price during that regular trading session), 
	 

4 

	
(ii)	
if the Common Stock is not listed for trading on the American Stock Exchange on that date, as reported in the composite transactions for the principal United States securities exchange on which the Common Stock is so
listed,  
	 
	
(iii)	
if the Common Stock is not so reported, the last quoted bid price for the Common Stock in the over-the-counter market as reported by the OTC   
	 
	 	
Bulletin Board, the National Quotation Bureau or similar organization, or      
	 
	
(iv)	
if the Common Stock is not so quoted, the average of the mid-point of the last bid and ask prices for the Common Stock from at least three nationally recognized investment banking firms that the Company selects for this
purpose. 
	 

     Each Warrant not exercised prior to 5:00 p.m., New York City time, on the last day of the Warrant Exercise Period shall become void and all rights thereunder and all rights in respect thereof under
this Agreement shall cease as of such time. 

     (b) Redemption of Warrants.

     The Company may call the Warrants for redemption, in whole and not in part, at a price of $.01 per Warrant, upon not less than 30 days’ prior written notice of redemption to each Warrant
holder, at any time after such Warrants have become exercisable pursuant to Section 6(a), if, and only if, (i) the Closing Price has equaled or exceeded $11.50 per share for any 20 trading days within a 30-trading-day period ending on the third
Business Day prior to the notice of redemption to Warrant holders and (ii) at all times between the date of such notice of redemption and the redemption date a registration statement is in effect covering the Warrant Shares issuable upon exercise of
the Warrants and a current prospectus relating to those Warrant Shares is available. 

     Notwithstanding the foregoing, no Founder’s Warrants shall be redeemable at the option of the Company so long as they are held by GSC Secondary Interest Fund, LLC or a Permitted Transferee;
provided that the fact that one or more Founder’s Warrants are non-redeemable because they are held by GSC Secondary Interest Fund, LLC or a Permitted Transferee shall not affect the Company’s right to redeem the Public Warrants and all
Founder’s Warrants that are not held by GSC Secondary Interest Fund, LLC or a Permitted Transferee pursuant to the preceding paragraph. 

     (c) Exercise Procedure.

     A Warrant may be exercised upon surrender to the Company at the principal stock transfer office of the Warrant Agent, which is currently located at the address listed in Section 17 hereof, of the
certificate or certificates evidencing the Warrants to be exercised with the form of election to purchase on the reverse thereof duly filled in and signed and such other documentation as the Warrant Agent may reasonably request, and upon payment to
the Warrant

5

Agent for the account of the Company of the Exercise Price (adjusted as herein provided if applicable) for the number of Warrant Shares in respect of which such Warrants are then exercised. Payment of the aggregate Exercise Price
shall be made in cash or by certified or official bank check payable to the order of the Company in New York Clearing House Funds, or the equivalent thereof. In no event will any Warrants be settled on a net cash basis. 

     Subject to the provisions of Section 7 hereof, upon such surrender of Warrants and payment of the Exercise Price, the Company shall issue and cause to be delivered with all reasonable dispatch to and
in such name or names as the Warrant holder may designate, a certificate or certificates for the number of full Warrant Shares issuable upon the exercise of such Warrants together with cash as provided in Section 12 hereof.  Such certificate or
certificates shall be deemed to have been issued and any person so designated to be named therein shall be deemed to have become a holder of record of such Warrant Shares as of the date of the surrender of such Warrants and payment of the Exercise
Price. 

     The Warrants shall be exercisable, at the election of the holders thereof, either in full or from time to time in part and, in the event that a certificate evidencing Warrants is exercised in respect
of fewer than all of the Warrant Shares issuable on such exercise at any time prior to the date of expiration of the Warrants, a new certificate evidencing the remaining Warrant or Warrants will be issued, and the Warrant Agent is hereby irrevocably
authorized to countersign and to deliver the required new Warrant Certificate or Certificates pursuant to the provisions of this Section 6 and of Section 4 hereof, and the Company, whenever required by the Warrant Agent, shall supply the Warrant
Agent with Warrant Certificates duly executed on behalf of the Company for such purpose.  The Warrant Agent may assume that any Warrant presented for exercise is permitted to be so exercised under applicable law and shall have no liability for
acting in reliance on such assumption. 

     All Warrant Certificates surrendered upon exercise of Warrants shall be canceled by the Warrant Agent.  Such canceled Warrant Certificates shall then be disposed of by the Warrant Agent in its
customary manner. The Warrant Agent shall account promptly to the Company with respect to Warrants exercised and concurrently pay to the Company all monies received by the Warrant Agent for the purchase of the Warrant Shares through the exercise of
such Warrants. 

     The Warrant Agent shall keep copies of this Agreement and any notices given or received hereunder available for inspection by the holders with reasonable prior written notice during normal business
hours at its office. The Company shall supply the Warrant Agent from time to time with such numbers of copies of this Agreement as the Warrant Agent may request. 

     Certificates evidencing Warrant Shares issued upon exercise of a Founder’s Warrant shall contain the following legend: 

     THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAW, AND MAY NOT BE OFFERED, SOLD, TRANSFERRED OR

6

OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND ANY APPLICABLE STATE SECURITIES LAWS OR AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE. 

     SECURITIES EVIDENCED BY THIS CERTIFICATE WILL BE ENTITLED TO REGISTRATION RIGHTS UNDER A REGISTRATION RIGHTS AGREEMENT TO BE EXECUTED BY THE COMPANY. 

     (d) Registration Requirement. Notwithstanding anything else in this Section 6, no Warrant (including any Founder’s Warrant) may be exercised unless at the time of exercise (i) a registration
statement covering the Warrant Shares to be issued upon exercise (other than Warrant Shares to be issued upon exercise of any Founder’s Warrant) is effective under the Act and (ii) a prospectus thereunder relating to the Warrant Shares (other
than Warrant Shares to be issued upon exercise of any Founder’s Warrant) is current, and the Company shall use its best efforts to have a registration statement in effect covering Warrant Shares issuable upon exercise of the Warrants (other
than Warrant Shares to be issued upon exercise of any Founder’s Warrant) from the date the Warrants become exercisable and to maintain a current prospectus relating to those Warrant Shares until the Warrants expire or are redeemed. In the event
that, at the end of the Warrant Exercise Period, a registration statement covering the Warrant Shares to be issued upon exercise (other than Warrant Shares to be issued upon exercise of any Founder’s Warrant) is not effective under the Act, all
the rights of holders hereunder shall terminate and all of the Warrants shall expire worthless. In no event shall the Warrants be settled on a net cash basis during the Warrant Exercise Period nor shall the Company be required to issue unregistered
shares upon the exercise of any Warrant that is not a Founder’s Warrant. 

     (e) Expiry Upon Liquidation of Trust Account. If the Company is dissolved because it fails to effect an Initial Business Combination, all of the rights of holders hereunder shall terminate and all of
the Warrants shall expire worthless. 

     SECTION 7. Payment of Taxes. The Company will pay all documentary stamp taxes attributable to the initial issuance of Warrant Shares upon the exercise of Warrants; provided, however, that the Company shall not be required to pay any tax or taxes which may be payable in respect of any transfer involved in the
issue of any Warrant Certificates or any certificates for Warrant Shares in a name other than that of the registered holder of a Warrant Certificate surrendered upon the exercise of a Warrant, and the Company shall not be required to issue or
deliver such Warrant Certificates unless or until the person or persons requesting the issuance thereof shall have paid to the Company the amount of such tax or shall have established to the satisfaction of the Company that such tax has been
paid.

     SECTION 8. Mutilated or Missing Warrant Certificates.  In case any of the Warrant Certificates shall be mutilated, lost, stolen or destroyed, the Company shall issue and the Warrant Agent shall
countersign, in exchange and substitution for and upon cancellation of the mutilated Warrant Certificate, or in lieu of and substitution for the Warrant Certificate lost, stolen or destroyed, a new Warrant Certificate of like tenor and representing
an equivalent number of Warrants, but only upon receipt of evidence satisfactory to the Company and the

7

Warrant Agent of such loss, theft or destruction of such Warrant Certificate and indemnity, also satisfactory to the Company and the Warrant Agent.  Applicants for such new Warrant Certificates must pay such reasonable charges as
the Company may prescribe. 

     SECTION 9. Reservation of Warrant Shares.  The Company will at all times reserve and keep available, free from preemptive rights, out of the aggregate of its authorized but unissued Common Stock or
its authorized and issued Common Stock held in its treasury, for the purpose of enabling it to satisfy any obligation to issue Warrant Shares upon exercise of Warrants, the maximum number of shares of Common Stock which may then be deliverable upon
the exercise of all outstanding Warrants. The Warrant Agent shall have no duty to verify availability of such shares set aside by the Company. 

     The Company or, if appointed, the transfer agent for the Common Stock (the “Transfer Agent”) and every subsequent transfer
agent for any shares of the Company’s Common Stock issuable upon the exercise of any of the Warrants will be irrevocably authorized and directed at all times to reserve such number of authorized shares as shall be required for such purpose. The
Company will keep a copy of this Agreement on file with the Transfer Agent and with every subsequent transfer agent for any shares of the Company’s Common Stock issuable upon the exercise of the Warrants.  The Warrant Agent is hereby
irrevocably authorized to requisition from time to time from such Transfer Agent the stock certificates required to honor outstanding Warrants upon exercise thereof in accordance with the terms of this Agreement. The Company will supply such
Transfer Agent with duly executed certificates for such purposes and will provide or otherwise make available any cash which may be payable as provided in Section 12 hereof. The Company will furnish such Transfer Agent a copy of all notices of
adjustments and certificates related thereto, transmitted to each holder pursuant to Section 13 hereof. 

     Before taking any action which would cause an adjustment pursuant to Section 11 hereof to reduce the Exercise Price below the then par value (if any) of the Warrant Shares, the Company will take any
commercially reasonable corporate action which may, in the opinion of its counsel (which may be counsel employed by the Company), be necessary in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares at the
Exercise Price as so adjusted. 

     The Company covenants that all Warrant Shares which may be issued upon exercise of Warrants will, upon payment of the Exercise Price therefor and issue, be fully paid, nonassessable, free of
preemptive rights and free from all taxes, liens, charges and security interests with respect to the issue thereof. 

     SECTION 10. Obtaining Stock Exchange Listings. The Company will from time to time take all commercially reasonable actions which may be necessary so that the Warrant Shares, immediately upon their
issuance upon the exercise of Warrants, will be listed on the principal securities exchanges and markets within the United States of America, if any, on which other shares of Common Stock are then listed. 

     SECTION 11. Adjustment of Number of Warrant Shares.

8

     The number of Warrant Shares issuable upon the exercise of each Warrant is subject to adjustment from time to time upon the occurrence of the events enumerated in this Section 11. For purposes of this
Section 11, “Common Stock” means shares now or hereafter authorized of any class of common stock of the Company and any other stock of the Company, however designated, that
has the right (subject to any prior rights of any class or series of preferred stock) to participate in any distribution of the assets or earnings of the Company without limit as to per share amount. 

     (a) Adjustment for Change in Capital Stock.

     If the Company:

     (1) pays a dividend or makes a distribution on its Common Stock in either case in shares of its Common Stock; 

     (2) subdivides its outstanding shares of Common Stock into a greater number of shares; 

     (3) combines its outstanding shares of Common Stock into a smaller number of shares; 

     (4) makes a distribution on its Common Stock in shares of its capital stock other than Common Stock; or 

     (5) issues by reclassification of its Common Stock any shares of its capital stock,

then the number of shares of Common Stock issuable upon exercise of each Warrant immediately prior to such action shall be proportionately adjusted so that the holder of any Warrant thereafter exercised shall receive the aggregate
number and kind of shares of capital stock of the Company which he would have owned immediately following such action if such Warrant had been exercised immediately prior to such action. 

     The adjustment shall become effective immediately after the record date in the case of a dividend or distribution and immediately after the effective date in the case of a subdivision, combination or
reclassification. 

     Such adjustment shall be made successively whenever any event listed above shall occur.

     (b) Adjustment for Rights Issue.

     If the Company distributes any rights, options or warrants to all holders of its Common Stock entitling them to purchase shares of Common Stock at a price per share less than the Closing Price per
share on the Business Day immediately preceding the ex-dividend date for such distribution of rights, options or warrants, the number of shares of Common Stock issuable upon exercise of each Warrant shall be adjusted in accordance with the formula:

9

	 	 	 	 	 	
	 	 	 	 	 	 
	 
        	where:
	 	 	 	 	 	 
	 	
N’
        	 
        	
 =
        	 
        	
 the adjusted number of shares of Common Stock issuable upon exercise of each
        
	 	 

        	 
        	 

        	 
        	
  Warrant.
        
	 	
N
        	 
        	
=
        	 
        	
 the current number of shares of Common Stock issuable upon exercise of each
        
	 	 

        	 
        	 

        	 
        	
  Warrant.
        
	 	
O
        	 
        	
=
        	 
        	
the number of shares of Common Stock outstanding on the record date for such
        
	 	 

        	 
        	 

        	 
        	
  distribution.
        
	 	
A
        	 
        	
=
        	 
        	
the number of additional shares of Common Stock issuable pursuant to such rights
        
	 	 

        	 
        	 

        	 
        	
  or warrants.
        
	 	P	 	=	 	the purchase price per share of the
    additional shares.
	 	M	 	=	 	the Closing Price per share of Common
    Stock on the record date.

     The adjustment shall be made successively whenever any such rights, options or warrants are issued and shall become effective immediately after the record date for the determination of stockholders
entitled to receive the rights, options or warrants. If at the end of the period during which such rights, options or warrants are exercisable, not all rights, options or warrants shall have been exercised, the number of shares of Common Stock
issuable upon exercise of each Warrant shall be immediately readjusted to what it would have been if “N” in the above formula had been the number of shares actually issued. 

     (c) Adjustment for Other Distributions.

     If the Company distributes to all holders of its Common Stock any of its assets (including cash) or debt securities or any rights, options or warrants to purchase debt securities, assets or other
securities of the Company (other than Common Stock), the number of shares of Common Stock issuable upon exercise of each Warrant shall be adjusted in accordance with the formula: 

	 	 	 	 	 	                
	 	 	 	 	 	 
	 	 

        	 
        	 

        	 
        	
where:
        
	 	 	 	 	 	 
	 	
N’ 
        	 	=	 
        	
the adjusted number of shares of Common Stock issuable upon exercise of each
        
	 	 

        	 
        	 

        	 
        	
Warrant.
        
	 	
N
        	 
        	
=
        	 
        	
the current number of shares of Common Stock issuable upon exercise of each
        
	 	 

        	 
        	 

        	 
        	
Warrant.
        
	 	
M
        	 
        	
=
        	 
        	
the Closing Price per share of Common Stock on the Business Day immediately
        
	 	 

        	 
        	 

        	 
        	
preceding the ex-dividend date for such distribution.
        

10

	 	
F
        	 
        	
=
        	 
        	
the fair market value on the ex-dividend date for such distribution of the assets,
        
	 	 

        	 
        	 

        	 
        	
securities, rights or warrants distributable to one share of Common Stock after
        
	 	 

        	 
        	 

        	 
        	
taking into account, in the case of any rights, options or warrants, the
        
	 	 

        	 
        	 

        	 
        	
consideration required to be paid upon exercise thereof. The Board of Directors
        
	 	 

        	 
        	 

        	 
        	
shall reasonably determine the fair market value in good faith.
        

     The adjustment shall be made successively whenever any such distribution is made and shall become effective immediately after the record date for the determination of stockholders entitled to receive
such distribution. 

     This subsection (c) does not apply to regular quarterly cash dividends paid out of earnings and not return of capital including increases thereof or rights, options or warrants referred to in
subsection (b) of this Section 11.  If any adjustment is made pursuant to this subsection (c) as a result of the issuance of rights, options or warrants and at the end of the period during which any such rights, options or warrants are exercisable,
not all such rights, options or warrants shall have been exercised, the Warrant shall be immediately readjusted as if “F” in the above formula was the fair market value on the ex-dividend date for such distribution of the indebtedness or
assets actually distributed upon exercise of such rights, options or warrants divided by the number of shares of Common Stock outstanding on the ex-dividend date for such distribution. Notwithstanding anything to the contrary contained in this
subsection (c), if “M-F” in the above formula is less than $1.00, the Company may elect to, and if “M-F” or is a negative number, the Company shall, in lieu of the adjustment otherwise required by this subsection (c),
distribute to the holders of the Warrants, upon exercise thereof, the evidences of indebtedness, assets, rights, options or warrants (or the proceeds thereof) which would have been distributed to such holders had such Warrants been exercised
immediately prior to the record date for such distribution. 

     (d) Adjustment for Common Stock Issue.

     If the Company issues shares of Common Stock for a consideration per share less than the Closing Price per share on the date the Company fixes the offering price of such additional shares, the number
of shares of Common Stock issuable upon exercise of each Warrant shall be adjusted in accordance with the formula: 

	 	 	 	
	 	 	 	 
	 	 

        	 
        	
where:
        
	 	 	 	 
	 	
N’ =
        	 
        	
the adjusted number of shares of Common Stock issuable upon exercise of each
        
	 	 

        	 
        	
Warrant.
        
	 	
N =
        	 
        	
the current number of shares of Common Stock issuable upon exercise of each
        
	 	 

        	 
        	
Warrant.
        

11 

	 	
O
        	 
        	
=
        	 
        	
the number of shares outstanding immediately prior to the issuance of such
        
	 	 

        	 
        	 

        	 
        	
additional shares.
        
	 	
P
        	 
        	
=
        	 
        	
the aggregate consideration received for the issuance of such additional shares.
        
	 	
M
        	 
        	
=
        	 
        	
the Closing Price per share on the date of issuance of such additional shares.
        
	 	
A
        	 
        	
=
        	 
        	
the number of shares outstanding immediately after the issuance of such
        
	 	 

        	 
        	 

        	 
        	
additional shares.
        

     The adjustment shall be made successively whenever any such issuance is made, and shall become effective immediately after such issuance. 

     This subsection (d) does not apply to: 

     (1) any of the transactions described in subsections (b) and (c) of this Section 11, 

     (2) the exercise of Warrants, or the conversion or exchange of other securities convertible or exchangeable for Common Stock, or the issuance of Common Stock upon the exercise of rights or warrants
issued to the holders of Common Stock, 

     (3) Common Stock (and options exercisable therefor) issued to the Company’s employees, officers, directors, consultants or advisors (whether or not still in such capacity on the date of exercise)
under bona fide employee benefit plans or stock option plans adopted by the Board of Directors of the Company and approved by the holders of Common Stock when required by law, if such Common Stock would otherwise be covered by this subsection (d),

     (4) Common Stock issued in a bona fide public offering for cash, 

     (5) Common Stock issued in a bona fide private placement to non-affiliates of the Company, including without limitation the issuance of equity as consideration or partial consideration for
acquisitions from persons that are not affiliates of the Company. 

     (e) Adjustment for Convertible Securities Issue.

     If the Company issues any securities convertible into or exchangeable for Common Stock (other than securities issued in transactions described in subsections (b) and (c) of this Section 11) for a
consideration per share of Common Stock initially deliverable upon conversion or exchange of such securities less than the Closing Price per share on the date of issuance of such securities, the number of shares of Common Stock issuable upon
exercise of each Warrant shall be adjusted in accordance with this formula: 

  

12 

	 	 

        	 
        	 

        	 
        	
where:
        
	 	 	 	 	 	 
	 	
N’ 
        	 	=	 
        	
the adjusted number of shares of Common Stock issuable upon exercise of each
        
	 	 

        	 
        	 

        	 
        	
Warrant.
        
	 	
N
        	 
        	
=
        	 
        	
the current number of shares of Common Stock issuable upon exercise of each
        
	 	 

        	 
        	 

        	 
        	
Warrant.
        
	 	
O
        	 
        	
=
        	 
        	
the number of shares outstanding immediately prior to the issuance of such
        
	 	 

        	 
        	 

        	 
        	
securities.
        
	 	
P
        	 
        	
=
        	 
        	
the aggregate consideration received for the issuance of such securities.
        
	 	
M
        	 
        	
=
        	 
        	
the Closing Price per share on the date of issuance of such securities.
        
	 	
D
        	 
        	
=
        	 
        	
the maximum number of shares deliverable upon conversion or in exchange for
        
	 	 

        	 
        	 

        	 
        	
such securities at the initial conversion or exchange rate.
        

     The adjustment shall be made successively whenever any such issuance is made, and shall become effective immediately after such issuance. 

     If all of the Common Stock deliverable upon conversion or exchange of such securities have not been issued when such securities are no longer outstanding, then the number of shares of Common Stock
issuable upon exercise of each Warrant shall promptly be readjusted to what it would have been had the adjustment upon the issuance of such securities been made on the basis of the actual number of shares of Common Stock issued upon conversion or
exchange of such securities. 

     This subsection (e) does not apply to: 

     (1) convertible securities issued in a bona fide public offering for cash; or 

     (2) convertible securities issued in a bona fide private placement to non-affiliates of the Company, including the issuance of convertible securities as consideration or partial consideration for
acquisitions from persons that are not affiliates of the Company. 

     (f) Adjustment for Tender or Exchange Offer.If the Company or any of its subsidiaries makes a payment in respect of a tender offer or exchange offer for the Common Stock, if the cash and value of any
other consideration included in the payment per share of the Common Stock exceeds the Closing Price of the Common Stock on the trading day next succeeding the last date on which tenders or exchanges may be made pursuant to such tender or exchange
offer, the number of shares of Common Stock issuable upon exercise of each Warrant will be increased based on the following formula: 

  

13 

	 	 

        	 
        	
where,
        
	 	 	 	 
	 	
N’ =
        	 
        	
the adjusted number of shares of Common Stock issuable upon exercise of each
        
	 	 

        	 
        	
Warrant;
        
	 	
No =
        	 
        	
the current number of shares of Common Stock issuable upon exercise of each
        
	 	 

        	 
        	
warrant;
        
	 	
AC =
        	 
        	
the aggregate value of all cash and any other consideration (as determined by the
        
	 	 

        	 
        	
Board of Directors of the Company) paid or payable for shares purchased in such
        
	 	 

        	 
        	
tender or exchange offer;
        
	 	
Oso =
        	 
        	
the number of shares of Common Stock outstanding immediately prior to the date
        
	 	 

        	 
        	
such tender or exchange offer expires;
        
	 	
OS’ =
        	 
        	
the number of shares of Common Stock outstanding immediately after the date
        
	 	 

        	 
        	
such tender or exchange offer expires; and
        
	 	
SP’ =
        	 
        	
the Closing Price of the Common Stock on the trading day next succeeding the
        
	 	 

        	 
        	
date such tender or exchange offer expires.
        

     The adjustment shall be made successively and shall become effective immediately following the date such tender or exchange offer expires. 

     (g) Consideration Received.

     For purposes of any computation respecting consideration received pursuant to subsections (d), (e) and (f) of this Section 11, the following shall apply: 

        (1) in the case of the issuance of shares of Common Stock for cash, the consideration shall be the amount of such cash, provided that in no case shall any deduction be made for any commissions,
    discounts or other expenses incurred by the Company for any underwriting or other sale or disposition of the issue or otherwise in connection therewith; 

        (2) in the case of the issuance of shares of Common Stock for a consideration in whole or in part other than cash, the consideration other than cash shall be deemed to be the fair market value thereof
    as reasonably determined by the Board of Directors of the Company (irrespective of the accounting treatment thereof) and described in a Board resolution which shall be filed with the Warrant Agent; and 

        (3) in the case of the issuance of securities convertible into or exchangeable for shares, the aggregate consideration received therefor shall be deemed to be the consideration received by the Company
    for the issuance of such securities plus the additional minimum consideration, if any, to be received by the Company upon the conversion or exchange thereof for the maximum number of shares used to calculate the

14

  
    adjustment  (the consideration in each case to be determined in the same manner as provided in clauses (1) and (2) of this subsection). 

        (h) Defined Terms; When De Minimis Adjustment May Be Deferred.

     As used in this section 11:

     (1) “ex-dividend date” means the first date on which the shares of Common Stock trade on the applicable exchange or in the applicable market, regular way, without the right to receive the
issuance or distribution in question; 

     (2) “trading day” means, with respect to the Common Stock or any other security, a day during which (i) trading in the Common Stock or such other security generally occurs, (ii) there is no
market disruption event (as defined below) and (iii) a Closing Price for the Common Stock or such other security (other than a Closing Price referred to in the next to last clause of such definition) is available for such day; provided that if the Common Stock or such other security is not admitted for trading or quotation on or by any exchange, bureau or other organization, “trading day” will mean any Business Day;

     (3) “market disruption event” means, with respect to the Common Stock or any other security, the occurrence or existence of more than one-half hour period in the aggregate or any scheduled
trading day for the Common Stock or such other security of any suspension or limitation imposed on trading (by reason of movements in price exceeding limits permitted by the stock exchange or otherwise) in the Common Stock or such other security or
in any options, contract, or future contracts relating to the Common Stock or such other security, and such suspension or limitation occurs or exists at any time before 1:00 p.m. (New York time) on such day; and 

     (4) “Business Day” means, any day on which the American Stock Exchange is open for trading and which is not a Saturday, a Sunday or any other day on which banks in the City of New York, New
York, are authorized or required by law to close. 

     No adjustment in the number of shares of Common Stock issuable upon exercise of each Warrant need be made unless the adjustment would require an increase or decrease of at least 1% in such number. Any
adjustments that are not made shall be carried forward and taken into account in any subsequent adjustment. 

     All calculations under this Section 11 shall be made to the nearest cent or to the nearest 1/100th of a share, as the case may be. 

     (i) When No Adjustment Required.

     No adjustment need be made for a transaction referred to in subsections (b), (c), (d), (e) or (f) of this Section 11 if Warrant holders are to participate, without requiring the Warrants to be
exercised, in the transaction on a basis and with notice that the Board of Directors

15

of the Company reasonably determines to be fair and appropriate in light of the basis and notice on which holders of Common Stock participate in the transaction. 

     No adjustment need be made for a change in the par value or no par value of the Common Stock. 

     To the extent the Warrants become convertible into cash, no adjustment need be made thereafter as to the amount of cash into which such Warrants are exercisable. Interest will not accrue on the cash.

     (j) Notice of Adjustment.

     Whenever the number of shares of Common Stock issuable upon exercise of each Warrant is adjusted, the Company shall provide the notices required by Section 13 hereof. 

     (k) Notice of Certain Transactions.

     If: 

     (1) the Company takes any action that would require an adjustment in the Exercise Price pursuant to subsections (a), (b), (c), (d), (e) or (f) of this Section 11 and if the Company does not arrange
for Warrant holders to participate pursuant to subsection (i) of this Section 11; 

     (2) the Company takes any action that would require a supplemental Warrant Agreement pursuant to subsection (l) of this Section 11; or 

     (3) there is a liquidation or dissolution of the Company,

the Company shall mail to Warrant holders a notice stating the proposed record date for a dividend or distribution or the proposed effective date of a subdivision, combination, reclassification, consolidation, merger, transfer,
lease, liquidation or dissolution. The Company shall mail the notice at least 15 days before such date. Failure to mail the notice or any defect in it shall not affect the validity of the transaction. 

     (l) Reorganization of Company.

     If the Company consolidates or merges with or into, or transfers or leases all or substantially all its assets to, any person, upon consummation of such transaction the Warrants shall automatically
become exercisable for the kind and amount of securities, cash or other assets which the holder of a Warrant would have owned immediately after the consolidation, merger, transfer or lease if such holder had exercised the Warrant immediately before
the effective date of the transaction; provided that (i) if the holders of Common Stock were entitled to exercise a right of election as to the kind or amount of securities, cash or other
assets receivable upon such consolidation or merger, then the kind and amount of securities, cash or other assets for which each Warrant shall become exercisable shall be deemed to be the weighted average of the kind 

16 

and amount received per share by the holders of Common Stock in such consolidation or merger that affirmatively make such election or (ii) if a tender or exchange offer shall have been made to and accepted by the holders of Common
Stock under circumstances in which, upon completion of such tender or exchange offer, the maker thereof, together with members of any group (within the meaning of Rule 13d-5(b)(1) under the Exchange Act) of which such maker is a part, and together
with any affiliate or associate of such maker (within the meaning of Rule 12b-2 under the Exchange Act) and any members of any such group of which any such affiliate or associate is a part, own beneficially (within the meaning of Rule 13d-3 under
the Exchange Act) more than 50% of the outstanding shares of Common Stock, the holder of a Warrant shall be entitled to receive the highest amount of cash, securities or other property to which such holder would actually have been entitled as a
shareholder if such Warrant holder had exercised the Warrant prior to the expiration of such tender or exchange offer, accepted such offer and all of the Common Stock held by such holder had been purchased pursuant to such tender or exchange offer,
subject to adjustments (from and after the consummation of such tender or exchange offer) as nearly equivalent as possible to the adjustments provided for in this Section 11. Concurrently with the consummation of any such transaction, the
corporation or other entity formed by or surviving any such consolidation or merger if other than the Company, or the person to which such sale or conveyance shall have been made, shall enter into a supplemental Warrant Agreement so providing and
further providing for adjustments which shall be as nearly equivalent as may be practical to the adjustments provided for in this Section. The successor Company shall mail to Warrant holders a notice describing the supplemental Warrant Agreement.

     If the issuer of securities deliverable upon exercise of Warrants under the supplemental Warrant Agreement is an affiliate of the formed, surviving, transferee or lessee corporation, that issuer shall
join in the supplemental Warrant Agreement. 

     If this subsection (l) applies, subsections (a), (b), (c), (d), (e) and (f) of this Section 11 do not apply. 

     (m) Warrant Agent’s Disclaimer.

     The Warrant Agent has no duty to determine when an adjustment under this Section 11 should be made, how it should be made or what it should be. The Warrant Agent has no duty to determine whether any
provisions of a supplemental Warrant Agreement under subsection (l) of this Section 11 are correct. The Warrant Agent makes no representation as to the validity or value of any securities or assets issued upon exercise of Warrants. The Warrant Agent
shall not be responsible for the Company’s failure to comply with this Section. 

     (n) When Issuance or Payment May Be Deferred.

     In any case in which this Section 11 shall require that an adjustment in the number of shares of Common Stock issuable upon exercise of each Warrant be made effective as of a record date for a
specified event, the Company may elect to defer until the occurrence of such event (i) issuing to the holder of any Warrant exercised after such record date the Warrant

17

Shares and other capital stock of the Company, if any, issuable upon such exercise over and above the Warrant Shares and other capital stock of the Company, if any, issuable upon such exercise on the basis of the number of shares
of Common Stock issuable upon exercise of each Warrant and (ii) paying to such holder any amount in cash in lieu of a fractional share pursuant to Section 12 hereof; provided,
however, that the Company shall deliver to such holder a due bill or other appropriate instrument evidencing such holder’s right to receive such additional Warrant Shares, other capital
stock and cash upon the occurrence of the event requiring such adjustment. 

     (o) Adjustment in Exercise Price.

     Upon each event that provides for an adjustment of the number of shares of Common Stock issuable upon exercise of each Warrant pursuant to this Section 11, each Warrant outstanding prior to the making
of the adjustment shall thereafter have an adjusted Exercise Price (calculated to the nearest ten millionth) obtained from the following formula: 

	 	
	 	 	 	 
	 	
where:
        	 
        	 

        
	 	 	 	 
	 	
E’ =
        	 
        	
the adjusted Exercise Price.
        
	 	
E =
        	 
        	
the Exercise Price prior to adjustment.
        
	 	
N’ =
        	 
        	
the adjusted number of Warrant Shares issuable upon
exercise of a 
        
	 	 

        	 
        	
Warrant by payment of the adjusted Exercise Price.
        
	 	
N =
        	 
        	
the number of Warrant Shares previously issuable upon
exercise of a 
	 	 

        	 
        	
Warrant by payment of the Exercise Price prior to adjustment.
        

     Following any adjustment to the Exercise Price pursuant to this Section 11, the amount payable, when adjusted and together with any consideration allocated to the issuance of the Warrants, shall never
be less than the par value per Warrant Share at the time of such adjustment. Such adjustment shall be made successively whenever any event listed above shall occur. 

     (p) Form of Warrants.

     Irrespective of any adjustments in the number or kind of shares issuable upon the exercise of the Warrants or the Exercise Price, Warrants theretofore or thereafter issued may continue to express the
same number and kind of shares and Exercise Price as are stated in the Warrants initially issuable pursuant to this Agreement. 

     (q) Other Dilutive Events.

     In case any event shall occur affecting the Company, as to which the provisions of this Section 11 are not strictly applicable, but would impact the holders of Warrants adversely as

18

compared to holders of Common Stock, and the failure to make any adjustment would not fairly protect the purchase rights represented by the Warrants in accordance with the essential intent and principles of this Section then, in
each such case, the Company shall appoint a firm of independent public accountants, investment banking or other appraisal firm of recognized national standing which shall give their opinion upon the adjustment, if any, on a basis consistent with the
essential intent and principles established in this Section 11, necessary to preserve, without dilution, the purchase rights represented by the Warrants. 

     SECTION 12. Fractional Interests. The Company shall not be required to issue fractional Warrant Shares on the exercise of Warrants.  If more than one Warrant shall be presented for exercise in full at
the same time by the same holder, the number of full Warrant Shares which shall be issuable upon the exercise thereof shall be computed on the basis of the aggregate number of Warrant Shares purchasable on exercise of the Warrants so presented. If
any fraction of a Warrant Share would, except for the provisions of this Section 12, be issuable on the exercise of any Warrants (or specified portion thereof), the Company shall pay an amount in cash equal to the fair market value on the day
immediately preceding the date the Warrant is presented for exercise, multiplied by such fraction. 

     SECTION 13. Notices to Warrant Holders. Upon any adjustment of the Exercise Price pursuant to Section 11, the Company shall promptly thereafter, and in any event within five days, (i) cause to be
filed with the Warrant Agent a certificate executed by the Chief Financial Officer of the Company setting forth the number of Warrant Shares issuable upon exercise of each Warrant after such adjustment and setting forth in reasonable detail the
method of calculation and the facts upon which such calculations are based, and (ii) cause to be given to each of the registered holders of the Warrant Certificates at his address appearing on the Warrant register written notice of such adjustments
by first-class mail, postage prepaid.  Where appropriate, such notice may be given in advance and included as a part of the notice required to be mailed under the other provisions of this Section 13.  The Warrant Agent shall be fully protected in
relying on any such certificate and on any adjustment therein contained and shall not be deemed to have knowledge of such adjustment unless and until it shall have received such certificate. 

     In case:

     (a) the Company shall authorize the issuance to all holders of shares of Common Stock of rights, options or warrants to subscribe for or purchase shares of Common Stock or of any other subscription
rights or warrants; or 

     (b) the Company shall authorize the distribution to all holders of shares of Common Stock of evidences of its indebtedness or assets (other than regular cash dividends or dividends payable in shares
of Common Stock or distributions referred to in subsection (b) of Section 11 hereof); or 

     (c) of any consolidation or merger to which the Company is a party and for which approval of any shareholders of the Company is required, or of the conveyance or transfer

19

of the properties and assets of the Company substantially as an entirety, or of any reclassification or change of Common Stock issuable upon exercise of the Warrants (other than a change in par value, or from par value to no par
value, or from no par value to par value, or as a result of a subdivision or combination), or a tender offer or exchange offer for shares of Common Stock; or 

     (d) of the voluntary or involuntary dissolution, liquidation or winding up of the Company; or 

     (e) the Company proposes to take any action not specified above which would require an adjustment of the Exercise Price pursuant to Section 11 hereof;

then the Company shall cause to be filed with the Warrant Agent and shall cause to be given to each of the registered holders of the Warrant Certificates at his address appearing on the Warrant register, at least 10 calendar days
prior to the applicable record date hereinafter specified, or as promptly as practicable under the circumstances in the case of events for which there is no record date, by first-class mail, postage prepaid, a written notice stating (i) the date as
of which the holders of record of shares of Common Stock to be entitled to receive any such rights, options, warrants or distribution are to be determined, or (ii) the initial expiration date set forth in any tender offer or exchange offer for
shares of Common Stock, or (iii) the date on which any such consolidation, merger, conveyance, transfer, dissolution, liquidation or winding up is expected to become effective or consummated, and the date as of which it is expected that holders of
record of shares of Common Stock shall be entitled to exchange such shares for securities or other property, if any, deliverable upon such reclassification, consolidation, merger, conveyance, transfer, dissolution, liquidation or winding up.  The
failure to give the notice required by this Section 13 or any defect therein shall not affect the legality or validity of any distribution, right, option, warrant, consolidation, merger, conveyance, transfer, dissolution, liquidation or winding up,
or the vote upon any action. 

     Nothing contained in this Agreement or in any of the Warrant Certificates shall be construed as conferring upon the holders thereof the right to vote or to consent or to receive notice as shareholders
in respect of the meetings of shareholders or the election of Directors of the Company or any other matter, or any rights whatsoever as shareholders of the Company. 

     SECTION 14.  Merger, Consolidation or Change of Name of Warrant Agent. Any corporation into which the Warrant Agent may be merged or with which it may be consolidated, or any corporation resulting
from any merger or consolidation to which the Warrant Agent shall be a party, or any corporation succeeding to all or substantially all the corporate trust or agency business of the Warrant Agent, shall be the successor to the Warrant Agent
hereunder without the execution or filing of any paper or any further act on the part of any of the parties hereto, provided that such corporation would be eligible for appointment as a successor warrant agent under the provisions of Section 16. In
case at the time such successor to the Warrant Agent shall succeed to the agency created by this Agreement, and in case at that time any of the Warrant Certificates shall have been countersigned but not delivered, any such successor to the Warrant
Agent may adopt the countersignature of the original Warrant Agent; and in case at that time any of the Warrant Certificates shall not have been countersigned, any

20

successor to the Warrant Agent may countersign such Warrant Certificates either in the name of the predecessor Warrant Agent or in the name of the successor to the Warrant Agent; and in all such cases such Warrant Certificates
shall have the full force and effect provided in the Warrant Certificates and in this Agreement. 

     In case at any time the name of the Warrant Agent shall be changed and at such time any of the Warrant Certificates shall have been countersigned but not delivered, the Warrant Agent whose name has
been changed may adopt the countersignature under its prior name, and in case at that time any of the Warrant Certificates shall not have been countersigned, the Warrant Agent may countersign such Warrant Certificates either in its prior name or in
its changed name, and in all such cases such Warrant Certificates shall have the full force and effect provided in the Warrant Certificates and in this Agreement. 

     SECTION 15.  Warrant Agent.  The Warrant Agent undertakes the duties and obligations imposed by this Agreement (and no implied duties or obligations shall be read into this Agreement against the
Warrant Agent) upon the following terms and conditions, by all of which the Company and the holders of Warrants, by their acceptance thereof, shall be bound: 

     (a) The statements contained herein and in the Warrant Certificates shall be taken as statements of the Company and the Warrant Agent assumes no responsibility for the correctness of any of the same
except such as describe the Warrant Agent or action taken or to be taken by it. The Warrant Agent assumes no responsibility with respect to the distribution of the Warrant Certificates except as herein otherwise provided. 

     (b) The Warrant Agent shall not be responsible for any failure of the Company to comply with any of the covenants contained in this Agreement or in the Warrant Certificates to be complied with by the
Company. 

     (c) The Warrant Agent may consult at any time with counsel of its own selection (who may be counsel for the Company) and the Warrant Agent shall incur no liability or responsibility to the Company or
to any holder of any Warrant Certificate in respect of any action taken, suffered or omitted by it hereunder in good faith and in accordance with the opinion or the advice of such counsel.  The Warrant Agent may execute any of the trusts or powers
hereunder or perform any duties hereunder either directly or through agents or attorneys and the Warrant Agent shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder.

     (d) The Warrant Agent may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Warrant Agent and
conforming to the requirements of this Agreement. The Warrant Agent shall incur no liability or responsibility to the Company or to any holder of any Warrant Certificate for any action taken in reliance on any Warrant Certificate, certificate of
shares, notice, resolution, waiver, consent, order, certificate, or other paper, document or instrument (whether in its original or facsimile form) believed by it to be genuine and to have been signed, sent or presented by the proper party or
parties. 

21

     (e) The Company agrees to pay to the Warrant Agent such compensation for all services rendered by the Warrant Agent in the administration and execution of this Agreement as the Company and the Warrant
Agent shall agree in writing to reimburse the Warrant Agent for all expenses, taxes and governmental charges and other charges of any kind and nature incurred by the Warrant Agent in the execution of this Agreement (including fees and expenses of
its counsel) and to indemnify the Warrant Agent (and any predecessor Warrant Agent) and save it harmless against any and all claims (whether asserted by the Company, a holder or any other person), damages, losses, expenses (including taxes other
than taxes based on the income of the Warrant Agent), liabilities, including judgments, costs and counsel fees and expenses, for anything done or omitted by the Warrant Agent in the execution of this Agreement except as a result of its negligence or
willful misconduct. The provisions of this Section 15(e) shall survive the expiration of the Warrants and the termination of this Agreement. 

     (f) The Warrant Agent shall be under no obligation to institute any action, suit or legal proceeding or to take any other action likely to involve expense unless the Company or one or more registered
holders of Warrant Certificates shall furnish the Warrant Agent with security and indemnity satisfactory to it for any costs and expenses which may be incurred, but this provision shall not affect the power of the Warrant Agent to take such action
as it may consider proper, whether with or without any such security or indemnity. All rights of action under this Agreement or under any of the Warrants may be enforced by the Warrant Agent without the possession of any of the Warrant Certificates
or the production thereof at any trial or other proceeding relative thereto, and any such action, suit or proceeding instituted by the Warrant Agent shall be brought in its name as Warrant Agent and any recovery of judgment shall be for the ratable
benefit of the registered holders of the Warrants, as their respective rights or interests may appear. 

     (g) The Warrant Agent, and any stockholder, director, officer or employee of it, may buy, sell or deal in any of the Warrants or other securities of the Company or become pecuniarily interested in any
transaction in which the Company may be interested, or contract with or lend money to the Company or otherwise act as fully and freely as though it were not Warrant Agent under this Agreement. Nothing herein shall preclude the Warrant Agent from
acting in any other capacity for the Company or for any other legal entity. 

     (h) The Warrant Agent shall act hereunder solely as agent for the Company, and its duties shall be determined solely by the provisions hereof. The Warrant Agent shall not be liable for anything which
it may do or refrain from doing in connection with this Agreement except for its own negligence or willful misconduct. The Warrant Agent shall not be liable for any error of judgment made in good faith by it, unless it shall be proved that the
Warrant Agent was negligent in ascertaining the pertinent facts. Notwithstanding anything in this Agreement to the contrary, in no event shall the Warrant Agent be liable for special, indirect, punitive or consequential loss or damage of any kind
whatsoever (including but not limited to lost profits), even if the Warrant Agent has been advised of the likelihood of the loss or damage and regardless of the form of the action. 

22

     (i) The Warrant Agent shall not at any time be under any duty or responsibility to any holder of any Warrant Certificate to make or cause to be made any adjustment of the Exercise Price or number of
the Warrant Shares or other securities or property deliverable as provided in this Agreement, or to determine whether any facts exist which may require any of such adjustments, or with respect to the nature or extent of any such adjustments, when
made, or with respect to the method employed in making the same. The Warrant Agent shall not be accountable with respect to the validity or value or the kind or amount of any Warrant Shares or of any securities or property which may at any time be
issued or delivered upon the exercise of any Warrant or with respect to whether any such Warrant Shares or other securities will when issued be validly issued and fully paid and nonassessable, and makes no representation with respect thereto.

     (j) Notwithstanding anything in this Agreement to the contrary, neither the Company nor the Warrant Agent shall have any liability to any holder of a Warrant Certificate or other Person as a result of
its inability to perform any of its obligations under this Agreement by reason of any preliminary or permanent injunction or other order, decree or ruling issued by a court of competent jurisdiction or by a governmental, regulatory or administrative
agency or commission, or any statute, rule, regulation or executive order promulgated or enacted by any governmental authority prohibiting or otherwise restraining performance of such obligation; provided that (i) the Company must use its reasonable best efforts to have any such order, decree or ruling lifted or otherwise overturned as soon as possible and (ii) nothing in this Section 15(j) shall affect the Company’s obligation
under Section 6(d) to use its best efforts to have a registration statement in effect covering the Warrant Shares issuable upon exercise of the Warrants and to maintain a current prospectus relating to those Warrant Shares. 

     (k) Any application by the Warrant Agent for written instructions from the Company may, at the option of the Warrant Agent, set forth in writing any action proposed to be taken or omitted by the
Warrant Agent under this Agreement and the date on and/or after which such action shall be taken or such omission shall be effective. The Warrant Agent shall not be liable for any action taken by, or omission of, the Warrant Agent in accordance with
a proposal included in such application on or after the date specified in such application (which date shall not be less than three Business Days after the date any officer of the Company actually receives such application, unless any such officer
shall have consented in writing to any earlier date) unless prior to taking any such action (or the effective date in the case of an omission), the Warrant Agent shall have received written instructions in response to such application specifying the
action to be taken or omitted. 

     (l) No provision of this Agreement shall require the Warrant Agent to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder or in
the exercise of its rights. 

     (m) In addition to the foregoing, the Warrant Agent shall be protected and shall incur no liability for, or in respect of, any action taken or omitted by it in connection with its administration of
this Agreement if such acts or omissions are not the result of the Warrant Agent’s reckless disregard of its duty, gross negligence or willful misconduct and are in reliance

23

upon (i) the proper execution of the certification concerning beneficial ownership appended to the form of assignment and the form of the election attached hereto unless the Warrant Agent shall have actual knowledge that, as
executed, such certification is untrue, or (ii) the non-execution of such certification including, without limitation, any refusal to honor any otherwise permissible assignment or election by reason of such non-execution. 

     SECTION 16. Change of Warrant Agent. The Warrant Agent may at any time resign as Warrant Agent upon written notice to the Company.  If the Warrant Agent shall become incapable of acting as Warrant
Agent, the Company shall appoint a successor to such Warrant Agent. If the Company shall fail to make such appointment within a period of 30 days after it has been notified in writing of such resignation or of such incapacity by the Warrant Agent or
by the registered holder of a Warrant Certificate, then the registered holder of any Warrant Certificate or the Warrant Agent may apply, at the expense of the Company, to any court of competent jurisdiction for the appointment of a successor to the
Warrant Agent. Pending appointment of a successor to such Warrant Agent, either by the Company or by such a court, the duties of the Warrant Agent shall be carried out by the Company. The holders of a majority of the unexercised Warrants shall be
entitled at any time to remove the Warrant Agent and appoint a successor to such Warrant Agent. If a Successor Warrant Agent shall not have been appointed within 30 days of such removal, the Warrant Agent may apply, at the expense of the Company, to
any court of competent jurisdiction for the appointment of a successor to the Warrant Agent. Such successor to the Warrant Agent need not be approved by the Company or the former Warrant Agent. After appointment the successor to the Warrant Agent
shall be vested with the same powers, rights, duties and responsibilities as if it had been originally named as Warrant Agent without further act or deed; but the former Warrant Agent upon payment of all fees and expenses due it and its agents and
counsel shall deliver and transfer to the successor to the Warrant Agent any property at the time held by it hereunder and execute and deliver any further assurance, conveyance, act or deed necessary for the purpose. Failure to give any notice
provided for in this Section 16, however, or any defect therein, shall not affect the legality or validity of the appointment of a successor to the Warrant Agent. 

     SECTION 17. Notices to Company and Warrant Agent. Any notice or demand authorized by this Agreement to be given or made by the Warrant Agent or by the registered holder of any Warrant Certificate to
or on the Company shall be sufficiently given or made when and if deposited in the mail, first class or registered, postage prepaid, addressed (until another address is filed in writing by the Company with the Warrant Agent), as follows: 

  
    
      
        
          
            GSC Acquisition Company 

            500 Campus Drive, Suite 220 

            Florham Park, NJ 07932 

            Fax No.: [973-437-1037] 

            Attention: Chief Executive Officer

        

      

    

  

     In case the Company shall fail to maintain such office or agency or shall fail to give such notice of the location or of any change in the location thereof, presentations may be

24

made and notices and demands may be served at the principal corporate trust office of the Warrant Agent. 

     Any notice pursuant to this Agreement to be given by the Company or by the registered holder(s) of any Warrant Certificate to the Warrant Agent shall be sufficiently given when and if deposited in the
mail, first-class or registered, postage prepaid, addressed (until another address is filed in writing by the Warrant Agent with the Company) to the Warrant Agent as follows: 

  
    
      
        
          
            American Stock Transfer & Trust Company

            59 Maiden Lane 

            Plaza Level 

            New York, New York 10038 

            Attention:

        

      

    

  

     SECTION 18. Supplements and Amendments. The Company and the Warrant Agent may from time to time supplement or amend this Agreement without the approval of any holders of Warrant Certificates in order
to cure any ambiguity or to correct or supplement any provision contained herein which may be defective or inconsistent with any other provision herein, or to make any other provisions in regard to matters or questions arising hereunder which the
Company and the Warrant Agent may deem necessary or desirable and which shall not in any way adversely affect the interests of the holders of Warrant Certificates theretofore issued. Upon the delivery of a certificate from an appropriate officer of
the Company which states that the proposed supplement or amendment is in compliance with the terms of this Section 18, the Warrant Agent shall execute such supplement or amendment. Notwithstanding anything in this Agreement to the contrary, the
prior written consent of the Warrant Agent must be obtained in connection with any supplement or amendment which alters the rights or duties of the Warrant Agent. The Company and the Warrant Agent may amend any provision herein with the consent of
the holders of Warrants exercisable for a majority of the Warrant Shares issuable on exercise of all outstanding Warrants that would be affected by such amendment. Without limiting the generality of the foregoing, prior to the issuance of any Public
Warrants, this Agreement (including Exhibit A hereto) may be amended by the Company and the Warrant Agent, without the consent of any holder of Founder’s Warrants, to modify in any way or provide for the terms of the Public Warrants.

     SECTION 19. Successors. All the covenants and provisions of this Agreement by or for the benefit of the Company or the Warrant Agent shall bind and inure to the benefit of their respective successors
and assigns hereunder. 

     SECTION 20. Termination. This Agreement will terminate on any earlier date if all Warrants have been exercised or expired without exercise.  The provisions of Section 15 hereof shall survive such
termination. 

     SECTION 21.  Governing Law.  This Agreement and each Warrant Certificate issued hereunder shall be deemed to be a contract made under the laws of the State of New York

25

and for all purposes shall be construed in accordance with the internal laws of said State. The parties agree that, all actions and proceedings arising out of this Agreement or any of the transactions contemplated hereby, shall be
brought in the United States District Court for the Southern District of New York or in a New York State Court in the County of New York and that, in connection with any such action or proceeding, submit to the jurisdiction of, and venue in, such
court. Each of the parties hereto also irrevocably waives all right to trial by jury in any action, proceeding or counterclaim arising out of this Agreement or the transactions contemplated hereby. 

     SECTION 22. Benefits of This Agreement. Nothing in this Agreement shall be construed to give to any person or corporation other than the Company, the Warrant Agent and the registered holders of the
Warrant Certificates any legal or equitable right, remedy or claim under this Agreement, and this Agreement shall be for the sole and exclusive benefit of the Company, the Warrant Agent and the registered holders of the Warrant Certificates.

     SECTION 23. Counterparts. This Agreement may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall
together constitute but one and the same instrument. 

     SECTION 24.  Force Majeure.  In no event shall the Warrant Agent be responsible or liable for any failure or delay in the performance of its obligations under this Agreement arising out of or caused
by, directly or indirectly, forces beyond its reasonable control, including without limitation strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God, and
interruptions, loss or malfunctions of utilities, communications or computer (software or hardware) services. 

26

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

  	GSC ACQUISITION COMPANY
	 	 	 
	By:	 
	 	

	 	Title:	 

  

  	AMERICAN STOCK TRANSFER & 

        TRUST COMPANY, as Warrant Agent
	 	 	 
	By:	 
	 	

	 	Title:	 

27

EXHIBIT A

[Form of Warrant Certificate]

[Face]

Warrant Certificate

GSC ACQUISITION COMPANY

     This Warrant Certificate
certifies that ________________________, or registered assigns, is the registered
holder of __________warrants (the “Warrants”)
to purchase shares of Common Stock, $.001 par value (the “Common
Stock”), of GSC Acquisition Company,
a  Delaware corporation (the “Company”).
Each Warrant entitles the holder, upon exercise during the period set forth in
the Warrant Agreement referred to below, to receive from  the Company that number
of fully paid and nonassessable shares of Common Stock (each, a “Warrant
Share”) as set forth below at the
exercise price (the
“Exercise Price”)
as determined pursuant to the Warrant Agreement payable in lawful money of the
United States of America upon surrender of this Warrant Certificate and  payment
of the Exercise Price at the office or agency of the Warrant Agent, but only
subject to the conditions set forth herein and in the Warrant Agreement. 

     Each Warrant is initially exercisable for one share of Common Stock.  The number of Warrant Shares issuable upon exercise of the Warrants are subject to adjustment upon the occurrence of certain
events set forth in the Warrant Agreement. 

     The initial Exercise Price per share of Common Stock for any Warrant is equal to $6.00 per share.  The Exercise Price is subject to adjustment upon the occurrence of certain events set forth in
the Warrant Agreement. 

     Warrants may be exercised only during the Warrant Exercise Period subject to the conditions set forth in the Warrant Agreement and to the extent not exercised by the end of such Warrant Exercise
Period such Warrants shall become void. 

     Reference is hereby made to the further provisions of this Warrant Certificate set forth on the reverse hereof and such further provisions shall for all purposes have the same effect as though fully
set forth at this place. 

     This Warrant Certificate shall not be valid unless countersigned by the Warrant Agent, as such term is used in the Warrant Agreement. 

A-1

     This Warrant Certificate shall be governed and construed in accordance with the internal laws of the State of New York, without regard to conflicts of laws principles thereof. 

  	GSC ACQUISITION COMPANY
	 	 	 
	By:	 
	 	

	 	Name:	 
	 	President

 

  	Countersigned:
	Dated:                 , 20
	AMERICAN STOCK TRANSFER & TRUST
      COMPANY,

      as Warrant Agent
	 	 	 
	By:	 
	 	

	 	Authorized Signatory  

A-2

[Form of Warrant Certificate]

[Reverse]

     The Warrants evidenced by this Warrant Certificate are part of a duly authorized issue of Warrants entitling the holder on exercise to receive shares of Common Stock, par value $0.001 per share,
of the Company (the “Common Stock”), and are issued or to be issued pursuant to a Warrant Agreement dated as of [             ], 2007 (the “Warrant Agreement”), duly executed and delivered by the Company to American Stock Transfer & Trust Company, a New York corporation, as warrant agent (the “Warrant Agent”), which Warrant Agreement is hereby incorporated by reference in and made a part of this instrument and is hereby referred to for a description of the rights, limitation of rights,
obligations, duties and immunities thereunder of the Warrant Agent, the Company and the holders (the words “holders” or “holder” meaning the registered holders or registered holder) of the Warrants. A copy of the Warrant Agreement may be obtained by the holder hereof upon written request to the Company. Defined terms
used in this Warrant Certificate but not defined herein shall have the meanings given to them in the Warrant Agreement. 

     Warrants may be exercised at any time during the Warrant Exercise Period set forth in the Warrant Agreement. The holder of Warrants evidenced by this Warrant Certificate may exercise them by
surrendering this Warrant Certificate, with the form of election to purchase set forth hereon properly completed and executed, together with payment of the Exercise Price as specified in the Warrant Agreement at the principal corporate trust office
of the Warrant Agent. In the event that upon any exercise of Warrants evidenced hereby the number of Warrants exercised shall be less than the total number of Warrants evidenced hereby, there shall be issued to the holder hereof or his assignee a
new Warrant Certificate evidencing the number of Warrants not exercised.  No adjustment shall be made for any dividends on any Common Stock issuable upon exercise of this Warrant. 

     Notwithstanding anything else in this Warrant Certificate or the Warrant Agreement, no Warrant may be exercised unless at the time of exercise (i) a registration statement covering the Warrant Shares
to be issued upon exercise (other than Warrant Shares to be issued upon exercise of any Founder’s Warrant) is effective under the Act and (ii) a prospectus thereunder relating to the Warrant Shares (other than Warrant Shares to be issued upon
exercise of any Founder’s Warrant) is current. In no event shall the Warrants be settled on a net cash basis during the Warrant Exercise Period nor shall the Company be required to issue unregistered shares upon the exercise of any Warrant that
is not a Founder’s Warrant. 

     The Warrant Agreement provides that upon the occurrence of certain events the number of Warrant Shares set forth on the face hereof may, subject to certain conditions, be adjusted.  No fractions of a
share of Common Stock will be issued upon the exercise of any Warrant, but the Company will pay the cash value thereof determined as provided in the Warrant Agreement. 

A-3

     Warrant Certificates, when surrendered at the principal corporate trust office of the Warrant Agent by the registered holder thereof in person or by legal representative or attorney duly authorized in
writing, may be exchanged, in the manner and subject to the limitations provided in the Warrant Agreement, but without payment of any service charge, for another Warrant Certificate or Warrant Certificates of like tenor evidencing in the aggregate a
like number of Warrants. 

     Upon due presentation for registration of transfer of this Warrant Certificate at the office of the Warrant Agent a new Warrant Certificate or Warrant Certificates of like tenor and evidencing in the
aggregate a like number of Warrants shall be issued to the transferee(s) in exchange for this Warrant Certificate, subject to the limitations provided in the Warrant Agreement, without charge except for any tax or other governmental charge imposed
in connection therewith. 

     The Company and the Warrant Agent may deem and treat the registered holder(s) thereof as the absolute owner(s) of this Warrant Certificate (notwithstanding any notation of ownership or other writing
hereon made by anyone), for the purpose of any exercise hereof, of any distribution to the holder(s) hereof, and for all other purposes, and neither the Company nor the Warrant Agent shall be affected by any notice to the contrary. Neither the
Warrants nor this Warrant Certificate entitles any holder hereof to any rights of a stockholder of the Company. 

A-4

Election to Purchase 

(To Be Executed Upon Exercise Of Warrant) 

     The undersigned hereby
irrevocably elects to exercise the right, represented by this Warrant Certificate,
to receive __________
 shares of Common Stock and herewith tenders payment for such
shares to the order of GSC Acquisition Company in the amount of $______

 in accordance with the terms hereof. The undersigned requests that a certificate
 for such shares be registered in the name of ________________, whose address
 is _______________________________and that such shares be delivered to ________________whose
 address is ___________

  ______________________. If said number of shares is less than all of the shares
  of Common Stock purchasable hereunder, the undersigned requests that a new
  Warrant Certificate representing the remaining balance of such shares be registered
  in the name of ______________, whose address is _________________________,
  and that such Warrant Certificate be delivered to _________________, whose
  address is __________________. 

	 

        	 
        	
Signature:
        
	
Date:
                , 20   	 
        	 

        
	 

        	 
        	
Signature Guaranteed:
        

A-5 

EXHIBIT B

LEGEND

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED, SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND ANY APPLICABLE STATE SECURITIES LAWS OR AN EXEMPTION FROM REGISTRATION IS AVAILABLE. IN ADDITION, THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD OR TRANSFERRED PRIOR TO THE
DATE UPON WHICH GSC ACQUISITION COMPANY (THE “COMPANY”) COMPLETES ITS INITIAL BUSINESS COMBINATION (AS DEFINED IN SECTION 5 OF THE WARRANT AGREEMENT REFERRED TO HEREIN) EXCEPT TO A PERMITTED TRANSFEREE (AS DEFINED IN THE WARRANT AGREEMENT)
WHO AGREES IN WRITING WITH THE COMPANY TO BE SUBJECT TO SUCH TRANSFER PROVISIONS.

SECURITIES EVIDENCED BY THIS CERTIFICATE AND SHARES OF COMMON STOCK OF THE COMPANY ISSUED UPON EXERCISE OF SUCH SECURITIES WILL BE ENTITLED TO REGISTRATION RIGHTS UNDER A REGISTRATION RIGHTS AGREEMENT TO BE EXECUTED BY THE
COMPANY. 

	  	  	 : 
	 No. ______________ 	  	_______ Warrants

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