Document:

EXHIBIT 10.41

 

 

EXHIBIT 10.41

 

WRITTEN DESCRIPTION OF DIRECTORS
FEES

PURSUANT TO ITEM 601(b)(10)(iii)(A) OF REGULATION S-K

Each non-employee member of the Board of Directors of Mentor
Corporation receives a quarterly fee of $12,500, equaling a total annual fee of
$50,000.  Effective June 1, 2005, the Chairman of the Board, who is a
non-employee Director, receives a quarterly fee of $37,500, for a total
annual fee of $150,000.  The Chairperson of the audit committee receives an
additional $5,000 per year; bringing the total annual fee for the Chairperson
to $55,000.  In addition, under the Company's amended 2000 Long-Term Incentive
Plan, each non-employee member of the Board of Directors is eligible to receive
options to purchase shares of the Company's common stock.Exhibit 10.42

 

EXHIBIT 10.42

UNIVERSITY SCIENCE CENTER

LEASE AGREEMENT

This Lease is made by and between University Research Park, Incorporated, a Wisconsin non-stock corporation (hereinafter referred
to as "Landlord"), and Mentor Corporation, a Minnesota corporation
(hereinafter referred to as "Tenant"), as of the date of execution by
Landlord as set forth on the signature page hereof.

W I T N E S S E T H :

IT IS HEREBY AGREED, by and between the
parties hereto, in consideration of the covenants and agreements set forth in
this Lease, as follows:

1.  PREMISES AND TERM

1.1.      Leased
Premises.  Landlord hereby leases
to Tenant and Tenant hereby leases from Landlord on the terms and provisions
and subject to the conditions hereinafter set forth in this Lease, the following
described premises:

Space in a building located at 535 Science Drive,
Suites A, B, C and D, Madison, Dane County, Wisconsin, (herein referred to as
the "Leased Premises") consisting of approximately 9,500 leasable
square feet of space and all necessary common areas situated upon the property
described in Exhibit A attached hereto. (The Property described in Exhibit A is
referred to herein as the "Landlord's Property"). The location of the
Leased Premises on the Landlord's Property is indicated on the map attached
hereto as Exhibit B-1, and the floor plan attached hereto as Exhibit B-2. 

1.2.       Term of Lease.  The term of this Lease ("the term") shall begin
on May 1, 2004 ("the commencement date"). The term shall end at midnight ten (10) years later.

1.3.       Security Deposit.  Tenant shall pay to
Landlord upon execution of this Lease the sum of Fourteen Thousand Two Hundred
Fifty and no/100 Dollars ($14,250.00) as security for the
performance of the obligations hereof by Tenant.  This sum shall be returned to
Tenant within thirty (30) days following the termination of this Lease,
provided Tenant has fulfilled all of its obligations herein.

1.4.       Condition of
Premises. 
Landlord
shall deliver the Leased Premises in "As-Is" condition, except that Landlord
reserves the right to remove equipment and fixtures and improvements required
to relocate the current tenant.

  

 

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2.  RENT

2.1.      Base
Rent.  Tenant shall pay to
Landlord at its office in Madison, Wisconsin, or such other place as Landlord
may designate in writing, and without any deduction or offset whatsoever, as
base rent and tenant improvement cost reimbursement, the following amounts on
or before the first day of each calendar month during the term indicated:

(a)        The sum of Eighteen and no/100
Dollars ($18.00) per square foot per year (i.e. the sum of One Hundred
Seventy-One Thousand and no/100 Dollars ($171,000.00) in 12 equal monthly
installments of Fourteen Thousand Two Hundred Fifty and no/100 Dollars
($14,250.00) in advance on or before the first day of each calendar month
during the first year of this Lease.

(b)        The
base rent for each subsequent lease year, including any lease year in the
extended term, shall be the base rent for the prior year increased by three (3%) percent annually. 
The first such increase shall take place on January 1, 2005.

If the term of this Lease
does not commence on the first day of a calendar month, the base rent for such
fractional month shall be computed pro rata on the basis of thirty (30) days
per month and paid to Landlord on the first day of the next succeeding calendar
month along with the rent for such succeeding month.

2.2.      Additional
Rent.  In addition to base
rent, Tenant shall pay as part of the consideration for this Lease and as
additional rent, hereinafter designated "additional rent," all
additional amounts hereinafter provided for and the same shall be payable within
fourteen (14) days of Landlord's demand except as otherwise expressly provided.

2.3.      Past
Due Rent.  If Tenant shall fail
to pay when due any base rent or additional rent, and such amount shall not be
paid within fourteen (14) days after the date when due, such unpaid amounts
shall bear interest from the due date thereof to the date of payment at the
prime interest rate then charged by the U.S. Bank National Association or its
successors or assigns.

2.4       Real
Estate Taxes.  Landlord shall pay all
real estate taxes on Landlord's Property, including all general real estate
taxes, personal property taxes on Landlord's Property and installments for
special assessments arising during the term of the Lease.  Tenant agrees to
reimburse Landlord for Tenant's Proportionate Share of such taxes and
assessments.  "Proportionate Share" for purposes of this Lease shall
be the ratio obtained by dividing the leasable square feet of the Leased
Premises by the leasable square feet of all buildings constructed from time to
time on Landlord's Property.  Tenant may pay its Proportionate Share of such
taxes in installments at least ten days prior to when such installment is due
the treasurer, unless the escrow of taxes is required as provided below. 
Landlord shall elect the longest payment schedule possible for special
assessments arising during the term of this Lease.  Landlord shall contest real
estate tax assessments upon request of Tenant, subject to Tenant's payment of
its Proportionate Share of reasonable attorneys' fees and costs incurred in
such contest.

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Tenant's Proportionate Share shall be
adjusted each time there is any change in the area of the Leased Premises or of
all buildings constructed from time to time on Landlord's Property.  Any
adjustment shall take place on the first day of the first calendar month
following the change in either of those areas.

Tenant's obligation for each tax
described in this section shall be prorated for the first year of this Lease as
of the Commencement Date of this Lease.

Tenant shall, upon notice from Landlord,
pay in escrow to Landlord one-twelfth (1/12) its Proportionate Share of the
estimated annual real estate taxes, personal property taxes and installments
for special assessments for Landlord's Property on the first day of each month
after such request, provided, however, that if the sum of such installments
shall be less than the total amount of Tenant's Proportionate Share of such
taxes, Tenant shall pay such deficiency at least ten (10) days in advance of
the due date of such taxes, taking into account any installment payment
arrangements offered by the taxing authority without the imposition of any
finance charge, penalty or other cost.  Tenant's escrow payment shall be
applied by Landlord to the payment of the taxes on the Landlord's Property.  At
the termination of this Lease, Tenant shall promptly pay Landlord for Tenant's
Proportionate Share of the estimated taxes based upon that portion of the
termination year this Lease is in effect.  Such estimate shall be based upon
the taxes for the preceding year.  Any payment by Tenant in excess of its
Proportionate Share of taxes for any tax year shall be refunded to Tenant as
soon as reasonably practicable.

3.  INSTALLATIONS,
REPAIRS AND

MAINTENANCE
OF LEASED PREMISES

3.1.      Maintenance
by Tenant.  Tenant shall at all
times keep the Leased Premises and all partitions, doors, fixtures, equipment
and appurtenances thereof (including but not limited to lighting and plumbing
equipment, lines and fixtures) in good order, condition and repair, including
periodic painting as determined by Landlord, reasonable wear and tear excepted.
If Tenant refuses or neglects to repair property as required hereunder and to
the reasonable satisfaction of Landlord as soon as reasonably possible after
written demand, Landlord may make such repairs without liability to Tenant for
any loss or damage that may accrue to Tenant's property or to Tenant's business
by reason thereof, and upon completion thereof, Tenant shall pay Landlord's
costs for making such repairs, upon presentation of bill therefor, as
additional rent. When used in this paragraph, the term "repairs" shall include
replacements and renewals when necessary and all such repairs shall be equal in
quality and class of original work.

3.2.      Maintenance
by Landlord.  Landlord shall keep
foundations, exterior walls, roof and all other structural members, both
interior and exterior of the Leased Premises and all common areas in good
repair and shall have access to the Leased Premises upon reasonable prior
notice for such purpose, but Landlord shall not be required to make any such
repairs which become necessary or desirable by reason of the negligence of
Tenant, its agents, servants, employees or customers.  Landlord shall also keep
and maintain heating, ventilating and air conditioning lines and equipment.

	
   

  

 

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Tenant shall pay for a pro rata portion
as a common area maintenance charge (described in Section 5.5) of the cost of
the replacement of heating and air conditioning equipment.  The total charge
for replacement before proration, shall be limited to a fraction of the
replacement cost thereof, the numerator of which shall be the number of years
which have expired since the commencement date of this Lease (including any
partial year), and the denominator of which shall be twenty (20).  The balance
of such cost shall be paid by Landlord.  Landlord shall enter into service
contracts on all heating, ventilating and air conditioning units, including but
not limited to changing filters, checking belts and oiling of units.  Tenant
shall pay its pro rata share of the cost of such contracts as a common area
charge.

3.3.      Exterior
Signs.  All signs to be
installed by Tenant shall be approved in advance in writing by the Design
Review Board appointed by the Board of Regents of the University of Wisconsin System. All signs to be installed by Landlord shall be approved in advance in writing
by the Design Review Board.

Tenant shall
remove all signs installed by Tenant at the termination of this Lease. Such
installations and removals shall be made in such a manner as to avoid injury,
defacement or any other damages to the buildings and improvements. The cost of
repairing any damage to the building caused by the installation, removal, or
maintenance of the sign shall be borne by the Tenant.

The cost of all signs, other than those
furnished by Landlord, including the installation, maintenance, and removal
thereof, shall be the responsibility of the Tenant.

3.4.      Alterations,
Changes and Installations by Tenant. 
Tenant
shall not make or cause to be made any alterations, additions or improvements
to the Leased Premises, or cause to be installed any fixtures, interior or
exterior lighting, plumbing equipment or mechanical equipment, without the
prior written consent of Landlord.

3.5.      Fixtures
and Equipment.  Subject to Section
3.4, Tenant may, at its own expense, furnish and install such equipment in and
on the Leased Premises as may be necessary or desirable for Tenant's business.
Landlord and Tenant acknowledge that all business and trade fixtures currently
located within the Leased Premises are the property of the Landlord.

3.6       Liens
and Obligations.  Tenant agrees not to
create or to permit others to create any lien or obligations against Landlord
or the Leased Premises in making alterations, repairs or in installing
materials, fixtures or equipment, agrees to cause any claim for such lien to be
released, and further agrees to hold Landlord harmless from all claims and
demands by any third party in any manner connected with such alterations,
repairs or installations or with Tenant's occupancy for such purpose. Tenant
shall comply with all laws and all directions, rules and regulations of all governmental
regulatory bodies or officials having jurisdiction over such alterations,
repairs or installations, except that Tenant shall not be required to comply
with any laws, regulations or orders by governmental authority necessitating
structural alterations, changes, repairs or additions, unless made necessary by
the act or work performed by Tenant, in which case Tenant shall so comply, at
its own expense, after first procuring the written consent of Landlord.

 

 

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4.  CONDUCT OF
BUSINESS

4.1       Business
Use.  It is understood and
agreed that the Leased Premises shall be used and occupied by Tenant as a general
office and laboratory. Tenant shall not use the Leased Premises for any use not
identified as a permitted use by any zoning ordinance or other governmental
regulation relating to the Leased Premises or approved as a conditional use by
the governmental bodies having zoning authority. No use shall be permitted, or
acts done, which will cause a cancellation of any insurance
policy covering the Leased Premises. Tenant shall not sell, permit to be kept,
used or sold in or about the Leased Premises any article which may be
prohibited by the standard form of fire insurance policy. In the event Tenant's
use of the Leased Premises results in an increase in the cost of any insurance
relating to the Landlord's Property, Tenant shall pay such additional cost to
Landlord upon demand. Tenant shall comply with all applicable laws, ordinances,
regulations and/or deed and plat restrictions affecting the use and occupancy
of the Leased Premises. Tenant shall not commit, or permit to be committed, any
waste or nuisance on the Leased Premises.

4.2.      Utility
Charges.  Tenant shall be solely
responsible for and promptly pay all charges for heat, water, gas, sewer,
electricity or any other utility used or consumed in the Leased Premises,
including supplemental heating. In the event utilities shall not be separately
metered, Tenant shall pay its prorated share based on the area of the Leased
Premises in relation to the leasable area in the buildings in which the Leased
Premises are located or another appropriate allocation method which fairly
allocates utility costs between tenants in the buildings based on differing
usage.  In no event shall Landlord be liable for an interruption or failure in
the supply of any such utilities to the Leased Premises.

4.3.      Taxes
on Leasehold.  Tenant shall be
responsible for and shall pay before delinquency all municipal, county, state,
or other taxes assessed during the term of this Lease against any leasehold
interest or personal property of any kind, owned by or placed in, upon or about
Leased Premises by Tenant.

4.4.      Assignment
or Subletting.  Tenant agrees not to
sell, assign, mortgage, pledge or in any manner transfer this Lease or any
estate or interest thereunder and not to sublet the Leased Premises or any part
or parts thereof, except to any of its subsidiaries or affiliates, without the
prior written consent of Landlord in each instance which consent shall not be
unreasonably withheld.  No assignment or sublease to a subsidiary or affiliate of
Tenant shall release Tenant from any obligations hereunder unless such assignee
or subtenant shall be of equal or better creditworthiness as reasonably
determined by Landlord.  Consent by Landlord to one assignment of this Lease or
to one licensing or subletting of the Leased Premises shall not be a waiver of
Landlord's rights hereunder as to subsequent assignment or subletting.
Landlord's rights to assign this Lease are and shall remain unqualified.

 

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4.5.      Corporate
Ownership.  If the Tenant is a
corporation and if at any time during the term of this Lease any part or all of
the corporate shares of said corporation shall be transferred by sale,
assignment, operation or law or other disposition (except transfers by gift,
bequest or inheritance) so that the result of such transfer would be the loss
of voting control of said corporation by the person or persons owning a
majority of said corporate shares at the date of this Lease, the Tenant shall
notify the Landlord in writing of such changes in voting control and Landlord
may terminate this Lease by giving Tenant written notice of such termination
within ninety (90) days after receipt of Tenant's notice. This section,
however, shall not apply if on the date this Lease is executed the Tenant is a
corporation, the outstanding common stock of which is listed on a recognized
security exchange, or if at least eighty (80%) percent of the Tenant's stock is
owned by another corporation, the common stock of which is so listed.

4.6.      Rules
and Regulations.  The rules and
regulations appended to this Lease as Exhibit C are hereby made a part of this
Lease, and Tenant agrees to comply with and observe the same. Tenant's failure
to keep and observe said rules and regulations shall constitute a breach of the terms of this Lease in the manner as if the same
were contained herein as covenants. Landlord reserves the right from time to
time to amend or supplement said rules and regulations and to adopt and
promulgate additional rules and regulations applicable to Leased Premises, and
the property described in Exhibit A, provided that such additional rules and
regulations do not unreasonably interfere with Tenant's use and enjoyment of
the Leased Premises. Notice of such additional rules and regulations, and
amendments and supplements, if any, shall be given to Tenant, and Tenant agrees
thereupon to comply with and observe all such rules and regulations and
amendments thereto and supplements thereof.

4.7.      Surrender.  On the last day of the term of this Lease, including any
option term, or upon the sooner termination thereof, Tenant shall peaceably and
quietly surrender the Leased Premises and all improvements thereon in the same
condition as at the commencement of this Lease, in good order, condition and
repair, fire and other unavoidable casualty, and reasonable wear and tear
excepted. All alterations, additions, improvements and fixtures which may be
made or installed by either Landlord or Tenant upon the Leased Premises, shall remain
the property of Landlord and shall remain upon and be surrendered with the
Leased Premises as a part thereof, without disturbance, molestation or injury
at the termination of the term of this Lease, whether by the elapse of time or
otherwise, all without compensation or credit to Tenant. Any personal property
not removed by Tenant shall be deemed abandoned and shall become the property
of Landlord; provided, that the Landlord shall have the option to effect said
removals and Tenant shall pay Landlord, on demand, the cost of removal thereof,
with interest at the prime interest rate established by U.S. Bank National
Association or its successors or assigns.

The delivery
to Landlord at the place then fixed for the payment of rent of the keys to the
Leased Premises shall constitute surrender of the premises by Tenant and
acceptance of the keys by Landlord shall constitute acceptance by Landlord of
such surrender. Such acceptance by Landlord shall not constitute a waiver of
any rights to recover damages under terms of this Lease. This method of
surrender shall not be exclusive and shall be in addition to all other methods
of surrender.

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Anything in this section to the contrary
notwithstanding, at any termination of this Lease, Landlord shall have a lien
upon all of the property of Tenant then located in or upon the Leased Premises
to secure the payment of any amounts due from Tenant to Landlord by reason of
this Lease or to secure the payment of damages, and Landlord may retain
possession of such property until payment in full of said amounts. Said lien
shall not be defeated by placing such property in storage. If Tenant has not
redeemed said property within ninety (90) days after the termination of said
Lease, Landlord may sell such property at public or private sale without
further notice to Tenant, and shall apply in a reasonable manner determined by
Landlord the proceeds of sale to reduce the amounts then owed from Tenant to
Landlord.

5.  COMMON USE AREAS AND
FACILITIES

5.1.      Common
Area.  As used herein,
"common area" shall include all of that portion of the improvements
on and all areas within the Landlord's Property which are designed for common use and benefit, exclusive of space in
buildings (or any further buildings) designed for rental to Tenants for
commercial purposes as the same may exist from time to time. Landlord reserves
the right to change building perimeters, add additional buildings, drives, or
other structures and to make other changes desired, provided only that
reasonable access to the Leased Premises is provided.   Landlord agrees to
provide access from the Leased Premises to the University Research Park Data
Network ("URPNet").  URPNet is a high-speed communications service, linking
computers located at the University Research Park to the University of
Wisconsin-Madison campus and national computer networks (the "Campus System"). 
URPNet is meant to encourage technology and information transfer between
companies and the University of Wisconsin-Madison researchers, staff and
students.  URPNet consists of a fiber optic-based Ethernet serving portions of
the University Research Park.  Individual workstations are connected to URPNet
using twisted-pair Ethernet compatible cabling.  URPNet is connected to the
Campus System Ethernet using bridges and high-speed DS-3 communications line
operating at 100 mega bits per second, leased through the University of
Wisconsin-Madison.  Tenant's use of URPNet is subject to acceptable use
policies promulgated from time to time by Landlord.  Landlord reserves the
right to limit or deny any Tenant's use of URPNet as a result of violations of
promulgated acceptable use policies.  Tenant's use of the Campus resources and
certain databases may be limited and may require negotiation of separate
agreements between Tenant and the University of Wisconsin-Madison.  Attached is
a description of certain services that may be available to Tenant (Exhibit D).

5.2.      Use
of Common Area.  Landlord hereby grants
to Tenant, its employees, agents, customers and invitees, the nonexclusive
right during the term of this Lease to use the common areas from time to time
constituted, such use to be in common with Landlord and all tenants of Landlord
from time to time, its and their employees, agents, customers and invitees,
except when the same are being repaired.

5.3.      Operation
and Maintenance.  The common area shall
at all times be subject to the exclusive control and management of Landlord and
Landlord shall manage, operate, repair and maintain the common area and its
facilities in a clean and sightly condition. The manner in which such area and
facilities shall be maintained and the expenditures therefor shall be at the
Landlord's sole discretion.

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5.4.      Preventing
Public Rights.  If Landlord deems it
necessary in order to prevent the acquisition of special rights, Landlord may
from time to time close all or any portion of the common area or take such
action as shall be reasonably appropriate for that purpose.

5.5.      Charge
for Common Area and Facilities. 
During
the term of this Lease Tenant shall pay to Landlord an annual charge which
shall be Tenant's pro rata share of the Landlord's actual cost of operating,
repairing, and maintaining the common area and other facilities which shall
include, but shall not be limited to driveway, parking areas, landscaped and
vacant areas, area-ways, walks, curbs, corridors, gardens, sanitary and storm
sewers, signs, public facilities such as washrooms, drinking fountains,
toilets, the cost of operating, repairing, lighting, heating, air conditioning,
cleaning, painting, removing of snow, ice and debris, policing and inspecting,
insurance for hazards and other risks, maintenance including but not limited to
such repair of paving, curbs, walkways, driveways, landscaping and drainage and
lighting facilities as may be necessary from time to time to keep the same in
good condition and repair, a reasonable allowance for the depreciation of
maintenance equipment, a reasonable allowance for Landlord's overhead costs in
conjunction with the foregoing, and all costs and expenses other than those of
a capital nature, but excluding legal fees recovered by Tenant from Landlord in
any litigation relating to this Lease. Landlord shall provide Tenant with an
itemized statement of such costs.

5.6.      Formula
For Pro Rata Share.  The annual charge for
common area maintenance and facilities shall be computed on the basis of twelve
(12) consecutive calendar months commencing and ending on dates designated by
the Landlord and shall be paid in advance in monthly installments on the first
day of each calendar month in an amount estimated by Landlord. Within sixty
(60) days after the end of each such twelve (12) month period, Landlord shall
determine and furnish to Tenant a computation of the actual amount charged for
such period; and the amounts so estimated and paid during such period shall be
adjusted promptly (including adjustments on a pro rata basis for any partial
such period at either end of the Lease term) by one party's
paying to the other whatever amount is necessary to effectuate such adjustment.

The Tenant's
pro rata share of the Landlord's actual costs defined in this Article shall be
that portion which the net leasable area in the Leased Premises bears to the
total net leasable area in the buildings located from time to time on the
Landlord's Property.

5.7.      Basis
For Changes.  Changes in any
particular floor area occurring during any calendar month shall be effective on
the first day of the next succeeding calendar month and the amounts of any
floor area in effect for the whole of any year shall be the average of the
total amounts in effect on the first day of each calendar month in such year.

6.  INSURANCE

6.1.      Casualty
Insurance.  Landlord shall at all
times during the term of this Lease keep all improvements which are now or
hereafter located on the Landlord's Property insured against loss or damage by
fire and the extended coverage hazards at full insurance value with loss
payable to Landlord, Landlord's mortgagee and such other parties as Landlord
may designate, as their interests may appear.

 

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Tenant agrees
to reimburse Landlord for its pro rata share of the cost of such insurance.
Tenant's pro rata share shall be based upon its portion of the cost of
improvements on the Landlord's Property, as determined under Section 2.4(a)(2),
and upon that portion of the policy year during which this Lease is in effect.
Tenant's portion of the cost of the improvements on the Landlord's Property
shall be determined, as a percentage, by dividing the cost of the Leased
Premises, including all equipment, and business and trade fixtures which are or
become the property of Landlord under other provisions of this Lease, by the
cost of all improvements on the Landlord's Property. Each month, Tenant shall
pay to Landlord an amount equal to one-twelfth (1/12) of its pro rata share of
the estimated annual casualty insurance premium. Upon Landlord's receipt of any
premium notice, Tenant shall upon demand make up any deficiency to the extent
of its pro rata share.

6.2.      Public
Liability Insurance.  Landlord shall at all
times during the term of this Lease keep in full force and effect a policy of
public liability and property damage insurance with respect to the Landlord's
Property and all business operated thereon, with limits of public liability not
less than One Million and No/100 ($1,000,000.00) Dollars for injury or death in
any one occurrence, and property damage liability insurance in the amount of
One Hundred Thousand and No/100 ($100,000.00) Dollars. The policies shall name
Landlord, Tenant and Landlord's mortgagees as co-insureds as their interests
may appear. Upon written request by Tenant, Landlord shall provide the Tenant
with evidence of such insurance, including identification of the Tenant as a
co-insured. Landlord may from time to time during the term of this Lease
increase the above stated coverage in its discretion. Tenant shall reimburse
Landlord for its pro rata share of the cost of such insurance in the same
manner as provided in Section 6.1 regarding casualty insurance.

6.3.      Tenant's
Contents.  Tenant shall be
responsible for obtaining such insurance as it may deem advisable for all
property located in the Leased Premises. It is understood that the insurance carried by Landlord does not cover the risk of
loss or damage to Tenant's property. Tenant waives any claim against Landlord
and shall save Landlord harmless from any claim for loss or damage to contents,
merchandise, fixtures, equipment or work done by Tenant regardless of the cause
of any such damage or loss.

6.4.      Increase
in Fire Insurance.  Tenant agrees that it
will not keep or use, in or upon the Leased Premises any article which may be
prohibited by the standard form fire insurance policy. If Tenant's use or
occupancy causes any increase in premiums for fire or casualty insurance on the
Landlord's Property, or the Leased Premises, or any part thereof, above the
rate of the least hazardous type of occupancy legally permitted in the Leased
Premises, Tenant shall pay the additional premium on such insurance. No part of
such additional premium resulting from the use or occupancy of another tenant
shall be charged to Tenant under Sections 6.1 and/or 6.2 of this Lease. The
Tenant shall also pay in such event any additional premium on any rent
insurance policy that may be carried by the Landlord for its protection against
rent loss through fire or other casualty. Bills for such additional premiums
shall be rendered by Landlord to Tenant at such times as Landlord may elect,
and shall be due and payable by Tenant when rendered, and the amount thereof
shall be deemed to be, and be paid as, additional rent.

	
   

	 

	 

  

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6.5.      Hold Harmless.  Landlord shall not be liable for any loss, injury, death,
or damage to persons or property which at any time may be suffered or sustained
by Tenant or by any person whosoever may at any time be using or occupying or
visiting the Landlord's Property or be in, on, or about the same, whether such
loss, injury, death, or damage shall be caused by or in any way result from or
arise out of any act, omission, or negligence of Tenant or of any occupant,
subtenant, visitor, or user of any portion of the Landlord's Property, or shall
result from or be caused by any other matter or thing whether of the same kind
as or of a different kind than the matters or things above set forth, and
Tenant shall indemnify Landlord against all claims, liability, loss or damage
whatsoever on account of any such loss, injury, death, or damage. Tenant shall
indemnify Landlord against all claims, liability, loss or damage arising by
reason of the negligence or misconduct of Tenant, its agents or employees.
Tenant hereby waives all claims against Landlord for damages to the building
and improvements that are now on or hereafter placed or built on the Landlord's
Property and to the property of Tenant in, on, or about the Landlord's
Property, and for injuries to persons or property in or about the Landlord's
Property, from any cause arising at any time. The preceding sentences shall not
apply to loss, injury, death, or damage arising by reason of the negligence or
misconduct of Landlord, its agents, or employees.

6.6.      Waiver of Subrogation.  Landlord and Tenant hereby release each other from any and
all liability or responsibility to the other (or to anyone claiming through or
under them by way of subrogation or otherwise) for any loss or damage to
property caused by fire or any of the extended coverage or supplementary
insurance contract casualties, even if such fire or other casualty shall have
been caused by the fault or negligence of the party or anyone for whom such
party may be responsible, provided, however, that this release shall be
applicable and in force and effect only in respect to loss or damage occurring
during such time as the releaser's policies shall contain a clause or endorsement
to the effect that any such release shall not adversely effect or impair or
prejudice the right of the releaser to recover thereunder. Landlord and Tenant
each agree that their policies will include such a clause or endorsement so
long as the same is obtainable and if not obtainable,
shall so advise the other in writing and such notice shall release both parties
from the obligation to obtain such a clause or endorsement.

7.  DESTRUCTION OF LEASED
PREMISES

7.1.      Destruction of Leased Premises.  If the building, which
includes the Leased Premises, is damaged or partially destroyed by fire or
other casualty to the extent of less than one-quarter (1/4) of the then cost of
replacement thereof above foundation, the same shall be repaired as quickly as
is practicable, by Landlord. If the building which includes the Leased Premises
is so destroyed or damaged to the extent of one-quarter (1/4) or more of the
then replacement cost thereof, then Landlord may elect not to repair or rebuild
by giving notice in writing terminating this Lease, in which event this Lease
shall be terminated as of the date of such notice.

7.2.      Rebuilding by Landlord.  If Landlord shall undertake to restore or repair the
building which includes the Leased Premises, it shall initiate and pursue the
necessary work with all reasonable dispatch, in a manner consistent with sound
construction methods.

 

                                                                                                                                                                                                                                                                                        

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  10

  

7.3.      Abatement of Rent Upon Destruction of Premises.  If such damage or
partial destruction renders the Leased Premises wholly untenantable, the base
rent shall abate until the Leased Premises have been restored and rendered
tenantable. If such damage or partial destruction renders the premises
untenantable only in part, the base rent shall abate proportionately as to the
portion of the Leased Premises rendered untenantable. Rent shall not abate
under this section if the damage or destruction is caused by the negligence or
misconduct of Tenant, its agents, employees, customers or invitees.

8. 
EFFECT OF CONDEMNATION

8.1.      Total Condemnation.  In the event that the Leased Premises or such part of the
Leased Premises as will render the remainder untenantable, shall be
appropriated or taken under the power of eminent domain by any public or
quasi-public authority, this Lease shall terminate and expire as of the date of
taking.

8.2.      Partial Condemnation.  In the event of any other partial condemnation, Tenant
shall have the option of terminating this Lease on the effective date of such
condemnation by written notice to Landlord prior to such effective date, unless
Landlord shall provide to Tenant within a reasonable time after such effective
date reasonably comparable space to that taken.

8.3.      Tenant's Damages.  Tenant shall have the right to claim and recover from the
condemning authority such compensation as may be separately awarded or
recoverable by Tenant in Tenant's own right on account of any and all damage to
Tenant's business by reason of the condemnation, and for or on account of any
cost or loss to which Tenant might be put in removing Tenant's property.

9.  REMEDIES

9.1.      Events of Default by Tenant.  Upon the failure by Tenant to pay rent when due, Landlord
may terminate this Lease or Tenant's right to use and occupy the Leased
Premises by fourteen (14) days' written notice to Tenant unless Tenant within
such fourteen (14) days pays all rent due. Upon the happening of any one or
more of the following events: (a) the levying of a writ of execution or
attachment on or against the property of Tenant; (b) the taking of any action
for the voluntary dissolution of Tenant; (c) the commencement of a mechanic's
lien foreclosure action against Tenant as a result of a mechanic's lien or
claim therefor against the land or Building of which the Leased
Premises are a part; (d) the failure of Tenant to perform any other of the
terms, provisions, and covenants of this Lease, Landlord may terminate this
Lease or Tenant's right to use and occupy the Leased Premises by thirty (30)
days' written notice to Tenant unless Tenant, within such thirty (30) day
period, cures the specified default or, if the default is of a character which
cannot be cured within thirty (30) days, the Tenant commences and diligently
pursues the cure of such default within thirty (30) days.

 

  

11

9.2.      Re-Entry by Landlord.  Upon such termination
of the Lease or termination of Tenant's right to use and occupy the Leased
Premises as aforesaid, or if Tenant at any time during the term of this Lease
vacates the premises or ceases operating said business in the entire or any
appreciable part of the Leased Premises, except for causes beyond its control,
Landlord may reenter the Leased Premises.

9.3.      Right to Relet.  Should Landlord elect to reenter, as herein provided, or
should it take possession pursuant to legal proceedings or pursuant to any
notice provided for by law, it may either terminate this Lease or it may from
time to time without terminating this Lease, make such alterations and repairs
as may be necessary in order to relet the Leased Premises, and relet the Leased
Premises or any part thereof for such term or terms (which may be for a term
extending beyond the term of this Lease) and at such rental or rentals upon
such other terms and conditions as Landlord in its sole discretion may deem
advisable upon each such reletting. All rentals received by the Landlord from
such reletting shall be applied, first, to the payment of any indebtedness
other than rent due hereunder from Tenant to Landlord; second, to the payment
of any costs of such alterations and repairs; third, to the payment of rent due
and unpaid future rent as the same may become due and payable hereunder. If
such rentals received from such reletting during the month be less than that to
be paid during that month by Tenant hereunder, Tenant shall pay any such
deficiency to Landlord. Such deficiency shall be calculated and paid monthly.
No such re-entry or taking possession of said premises by Landlord shall be
construed as an election in its part to terminate this Lease unless a written
notice of such intention be given to Tenant or unless the termination thereof
be decreed by a court of competent jurisdiction. Notwithstanding any such
reletting without termination, Landlord may at any time thereafter elect to
terminate this Lease for such previous breach. Should Landlord at any time reenter
or terminate this Lease for any breach set forth in Section 9.1 above, in
addition to any other remedies it may have, Landlord may recover from Tenant
all damages it may incur by reason of such breach, including the cost of
recovering the Leased Premises and reasonable attorney's fees.  All which
amounts shall be immediately due and payable from Tenant to Landlord.

9.4.      Parties May Remedy Defaults.  In the event of any breach hereunder by either party, and
in lieu of Landlord's terminating this Lease as herein provided, Landlord or
Tenant respectively may immediately or at any time thereafter, after having
given the other party the requisite notice to correct the same and that time
for such correction having elapsed, cure such breach for the account and at the
expense of the other party. If Landlord or Tenant at any time, by reason of
such breach, is compelled to pay, or elects to pay, any sum of money or do any
act which will require the payment of any sum of money, or incurs any expense,
including reasonable attorney's fees, in instituting or prosecuting any action
or proceeding to enforce such party's rights hereunder, the sum or sums so paid
or incurred by such party, if paid or incurred by Landlord, shall be deemed to
be additional rent hereunder and shall be due from Tenant to Landlord on the first day of the month following the
payment of such respective sums, and if paid or incurred by Tenant, shall be
due and payable by Landlord on demand with interest at the rate provided in
Section 4.7 hereof. This option is given to the parties is intended for their
protection and its existence shall not release the parties from the obligation
to perform the terms and covenants herein provided to be performed by the
respective parties or deprive Landlord of any legal rights which it may have by
reason of any default of Tenant.

	
   

  

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12

                                                                                                                                                                                                                                                                      

9.5.      Landlord's
Remedies:  Liquidated Damages.  In the event that at any time, whether before or after the commencement
of the term hereof, a bankruptcy petition shall be filed by Tenant or against
Tenant and Tenant shall thereafter be adjudicated a bankrupt, or such petition
shall be approved by the court, in any court or pursuant to any statute either
of the United States or of any State, whether in bankruptcy, insolvency, for
reorganization under Chapter XI or XIII of the Bankruptcy Act or under any
other provisions of the Bankruptcy Act, or under the provisions of any law of
like impact, for the appointment of a receiver or trustee of Tenant or for the
property of Tenant, or if Tenant shall make an assignment of Tenant's property
for the benefit of its creditors, or if proceedings are instituted in a court
of competent jurisdiction for the reorganization, liquidation or involuntary
dissolution of Tenant, then immediately upon the happening of any such event,
and without any entry or other act by Landlord, this Lease and the term and
estate hereby granted (whether or not the term shall therefore have commenced)
shall expire, terminate and come to an end in the same manner and with the same
force and effect as if the date of such occurrence were the date hereinbefore
fixed for the expiration of the term hereof. In the event of the termination of
the term hereof by the happening of any such event, Landlord shall forthwith
upon such termination, and any other provisions of this Lease to the contrary
notwithstanding, become entitled to recover as and for liquidated damages
caused by such breach of the provisions of this Lease an amount equal to the
difference between the then cash value of the rent reserved hereunder for the unexpired portion of the demised term and the then cash rental value of the
Leased Premises for such unexpired portion of the term hereby demised unless
the statute which governs or shall govern the proceeding in which such damages
are to be provided limits or shall be entitled to prove as and for liquidated
damages an amount equal to that allowed by or under such statute. The provision
of this paragraph shall be without prejudice to Landlord's right to prove in
full damages for rent accrued prior to the termination of this Lease but not
paid. This provision of this Lease shall be without prejudice of any rights
given Landlord by any pertinent statute to prove any amounts allowed thereby.
In making such computation, the then cash rental value of the Leased Premises
shall be deemed prima facie to be the rent realized upon any reletting, if such
reletting can be accomplished by Landlord within a reasonable time after such a
termination of this Lease.

9.6.      Expenses of Landlord.  Upon the occurrence of an event of default (as defined in
Section 9.1 above), notwithstanding anything herein to the contrary and whether
or not Landlord terminates this Lease, Tenant shall promptly, upon request,
reimburse Landlord for all costs and expenses reasonably incurred in enforcing
this Lease, including reasonable attorneys' fees.

9.7.      Waiver of Redemption.  Tenant hereby expressly waives any and all rights of
redemption granted by or under any present or future laws in the event of
Tenant's being evicted or dispossessed for any cause, or in the event of
Landlord's obtaining possession of the Leased Premises, by reason for the
violation by Tenant of any of the covenants or conditions of this Lease, or
otherwise.

9.8.      Defaults of Landlord.  Should Landlord be in default under the terms of this
Lease, Landlord shall cure such default within thirty (30) days after written
notice of such default from Tenant, or in the event such default is of such a
character as to require more than thirty (30) days to cure, Landlord shall use
due diligence to cure such default.

 

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  13

  

 

9.9.      Rights Cumulative.  All rights and remedies of Landlord and Tenant herein
enumerated shall be cumulative and none shall exclude any other right or remedy
allowed by Law, and said rights and remedies may be exercised and enforced
concurrently and whenever and as often as occasion therefor arises.

10.  MISCELLANEOUS

10.1.    Subordination.  At Landlord's option, this Lease shall be subordinated to
any existing mortgages covering the Leased Premises, any extension or renewal
thereof, or to any new mortgages which may be placed thereon from time to time,
provided, however, anything to the contrary contained herein notwithstanding,
every such mortgage shall contain a provision that the mortgagee shall
recognize the validity of this Lease in the event of foreclosure of the
Landlord's interest so long as Tenant shall not be in default under the terms
of this Lease. Tenant shall execute whatever instruments may be required to
effect such subordination.

10.2.    Sale of Property.  Landlord
shall have the right at any time to sell, transfer or convey its interest in
all or any portion(s) of Landlord's Property, improvements and buildings of
which the Leased Premises are a part to any person, firm or corporation
whatsoever, and upon any such sale, transfer or conveyances, Landlord shall
cease to be liable under any covenant, condition or obligation imposed upon it
by this Lease, or any of the terms and provisions thereof; provided, however,
that any such sale, transfer or conveyance shall be subject to this Lease and
that all of the Landlord's covenants and obligations contained herein shall be
binding upon the subsequent owner or owners thereof; and provided further that
such transferee from Landlord shall in writing assume the obligations of
Landlord hereunder.

10.3.    Offset Statement.  Within ten (10) days after request therefor by Landlord, or
in the event that upon any sale, assignment or hypothecation of the Leased
Premises and/or all or any portion(s) of the Landlord's Property by Landlord an
offset statement shall be required by Tenant; Tenant agrees, upon request by
Landlord or any proposed mortgagee or purchaser, to deliver in recordable form
a certificate to any proposed mortgagee or purchaser, or to Landlord,
certifying (if such be the case) that this Lease is in full force and effect
and that there are no defenses or offsets thereto, or stating those claimed by
Tenant.

10.4.    Attornment.  Tenant shall, in the event any proceedings are brought for the
foreclosure of, or in the event of exercise of the power or sale under any
mortgage made by the Landlord covering the Leased Premises, attorn to the
purchaser upon any such foreclosure or sale and recognize such purchaser as the
Landlord under this Lease.

10.5.    Recording.  Tenant shall not record this Lease without the written
consent of Landlord; however, upon the request of either party hereto the other
party shall join in the execution of memorandum or so
called "short form" of this Lease for the purpose of recordation.
Said memorandum or short form of this Lease shall describe the parties, the
Leased Premises and the term of this Lease and shall incorporate this Lease by
reference.

 

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	14

  

 

10.6.    Excavations.  In case any excavation shall be made for buildings or
improvements or for any other purpose upon the land adjacent to or near the
Leased Premises, Tenant will afford to Landlord, or the person or persons,
firms or corporations causing or making such excavation, license to enter upon
the Leased Premises for the purpose of doing such work as Landlord or such
person or persons, firms or corporations shall deem to be necessary to preserve
the walls or structures of the building from injury, and to protect the
building by proper securing of foundations. Insofar as Landlord may have
control over the same, all such work shall be done in a manner as will not
materially interfere with the operation of Tenant's business in the Leased
Premises.

10.7.    Access to Premises.  Tenant shall permit Landlord, its agents and employees,
upon reasonable prior notice, to enter the Leased Premises at all reasonable
times, for the purpose of making repairs, additions or alterations to the
building in which the Leased Premises are located, or for the purpose of
inspecting (including without limitation inspections for determining the
compliance by any laboratory and animal operations with minimum health and
safety requirements or standards) or for the purpose of posting notices of
availability for rent without any rebate or abatement of rent and without any
liability for any loss of occupation or quiet enjoyment of the Leased Premises.
For purposes of this Section, the standards set forth in the Guide for the Care
and Use of Laboratory Animals  (which outlines the rules and regulations of the
Animal Welfare Act and the Public Health Service Policy on Humane Care and Use
of Laboratory Animals) shall constitute such minimum standards.  In addition,
upon the request of Landlord, Tenant will promptly, within three days of
Landlord's request, furnish to Landlord copies of all reports, filings and
records required to be maintained by Tenant with respect to hazardous materials
located or used in the Leased Premises, including all "Material Safety Data
Sheets."  The exercise by Landlord of any of its rights under this provision
shall not be deemed an eviction or disturbance of Tenant's use and possession
of the Leased Premises.

10.8.    Quiet Enjoyment.  If and so long as Tenant pays the rent reserved by this
Lease and performs and observes all of the covenants and provisions hereof,
Tenant shall quietly enjoy the Leased Premises, subject, however, to the terms
of this Lease.

10.9.    Notices.  Any notice required or permitted under this Lease shall be
deemed sufficiently given or served if sent by certified mail to Tenant at the
address of the Leased Premises, and to Landlord at its office or such other
place as it may designate in writing, and either party may by like written
notice at any time and from time to time designate a different address to which
notices shall subsequently be sent. Notices given in accordance with these
provisions shall be deemed received when mailed.

10.10.  Holding Over.  In the event Tenant remains in possession of the Leased
Premises after the expiration of this Lease and without the execution of a new
Lease, it shall be deemed to be occupying said premises as a Tenant from
month-to-month, subject to all conditions, provisions and
obligations of this Lease insofar as the same are applicable to a
month-to-month tenancy. Nothing in this section shall operate to preclude
Landlord from removing Tenant from the Leased Premises upon the expiration of
this Lease.

 

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  15

  

10.11.  Consents by Landlord.  Whenever under this Lease provision is made for Tenant
securing the written consent or approval of Landlord, such consent or approval
will not be unreasonably withheld.

10.12.  Successors and Assigns.  The terms, covenants and conditions hereof shall be binding
upon and inure to the successors in interest and assigns of the parties hereto.

10.13.  Governmental Regulations.  Tenant shall, at Tenant's sole cost and expense, comply
with all of the requirements of all city, county, municipal, state, federal and
other applicable governmental authorities, now in force, or which may hereafter
be in force, pertaining to signs, installations, repairs and business
operations in the Leased Premises and shall faithfully observe all statutes now
in force or which may hereafter be in force.

10.14.  Certain Expenses of Landlord.  Any out-of-pocket expenses reasonably incurred by Landlord
for purposes of considering or acting upon any request for consent or waiver
under, or modification of, any of the provisions of this Lease, including
reasonable attorney's fees, shall be promptly reimbursed by Tenant upon Landlord's
request.

10.15.  Force Majeure.  In the event that either Landlord or Tenant shall be
delayed or hindered in or prevented from the performance of any act required
hereunder by reason of strikes, lock outs, labor disputes, inability to procure
materials, failure of power, restrictive governmental laws or regulations,
riots, insurrection, war or other reason of a like nature not attributable to
the negligence or fault of the party delayed in performing work or doing acts
required under the terms of this Lease, then performance of such act shall be
excused for the period of the unavoidable delay and the period for the
performance of any such act shall be extended for an equivalent period.
Provided, however, that this provision shall not operate to excuse Tenant from
the timely payment of rent and other payments required by the terms of this
Lease.

 

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16

 

10.16.  General.  Nothing contained in this Lease shall be deemed or
construed by the parties hereto or by any third party to create the
relationship of principal and agent or of partnership or of joint venture or of
any association between Landlord and Tenant, it being expressly understood and
agreed that neither the method of computation of rent nor any other provisions
contained in this Lease nor any acts of the parties hereto shall be deemed to
create any relationship between Landlord and Tenant other than the relationship
of landlord and tenant. No waiver of any default of Tenant or Landlord
hereunder shall be implied from any omission by Landlord or Tenant any action
on account of such default if such default persists or is repeated, and no
express waiver shall affect any default other than the default specified in the
express waiver and that only for the time and to the extent therein stated. One
or more waivers of any covenant, term or condition of this Lease by Landlord or
Tenant shall not be construed as a waiver of a subsequent breach of the same
covenant, term or conditions. The consent or approval by Landlord to or of any
act by Tenant requiring the Landlord's consent or approval shall not be deemed
to waive or render unnecessary Landlord's consent or approval to or of any
subsequent
similar act by Tenant. The invalidity or
unenforceability of any provision hereof shall not affect or impair any provision.
The plural sense where there is more than one tenant and to either
corporations, associations, partnership or individuals, male or females, shall
in all instances be assumed as though in each case fully expressed. The laws of
the State of Wisconsin shall govern the validity, performance and
enforcement of this Lease. The submission of this Lease for examination does
not constitute a reservation of or option for the Leased Premises and this
Lease becomes effective as a Lease only upon execution and delivery thereof by
Landlord and by Tenant. The headings contained herein are for convenience only
and do not define, limit or construe the contents of the provisions hereof. All
negotiations, representations and understandings between the parties are
incorporated herein and may be modified or altered only by agreement in writing
between the parties.

10.17.  No
Option. 
The submission of this Lease for examination does not constitute a reservation
of or option for the Leased Premises, and this Lease shall become effective
only upon execution and delivery thereof by both parties.  

11.  ATTACHMENTS

11.1.    Attachments.  The following are attached hereto and made a part hereof
with the same force and effect as if set forth in full herein:

(a)        Exhibit A:         Legal Description
of Landlord's Property.

(b)        Exhibit B-1:      Location of Leased
Premises.

(c)        Exhibit B-2:      Floor Plan.

(d)        Exhibit C:         Rules and Regulations.

(e)        Exhibit
D:         Description of Network Services

            IN
WITNESS WHEREOF,
Landlord and Tenant have executed this Lease and affixed their respective seals
as of the day, month and year set forth below.

	
  LANDLORD:

  	
   

  	
  TENANT:

  
	
  UNIVERSITY RESEARCH PARK, INCORPORATED

  	
   

  	
  MENTOR
  CORPORATION

  
	

  	

  	

  
	
  By:

  	
  /s/Mark D.
  Bugher

  	

  	
  By:

  	
  /s/Adel
  Michael

  
	

  	
  Mark D. Bugher

  Assistant Secretary/Treasurer

  	

  	

  	
  Adel Michael

  Vice Chairman and

	Chief
  Financial Officer

  
	
  Date:

  	
  March 17, 2004

  	

  	
  Date:

  	
  March 17, 2004

  

 

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17

EXHIBIT A

LEGAL DESCRIPTION OF LANDLORD'S PROPERTY

 

 

 

 

 

 

 

 

 

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EXHIBIT B-1

LOCATION OF LEASED PREMISES

 

 

 

 

 

 

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EXHIBIT B-2

FLOOR PLAN

See Attached

 

 

 

 

 

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EXHIBIT C

RULES AND REGULATIONS

The
Premises shall be a smoke-free environment.  No smoking shall be permitted
anywhere in the building or in or around the main entrance (fronting on Science Drive) to the building.

 

 

 

 

 

 

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EXHIBIT D

DESCRIPTION OF NETWORK SERVICES 

AVAILABLE ON OR THROUGH THE UNIVERSITY OF WISCONSIN-MADISON 

CAMPUS COMPUTER NETWORK SYSTEM 

The University of Wisconsin-Madison
Campus Computer Network System ("Campus System") provides a full range of
network services including electronic mail, file transfer and remote login
using the TCP/IP and DECNet protocols.  Access to other computers throughout
the nation is provided through University of Wisconsin-Madison's connections to
the regional "Big Ten" network, CICNet, the national backbone network, NSFNet
or BITNet.

In
addition to network access, limited consulting services are provided by the
University of Wisconsin-Madison Division of Information Technology ("DoIT"). 
DoIT will assist network users in connecting and operating computers on the
network.

Many
Campus Systems services are available at no charge to those having access to
the network.  Some services, such as, but not limited to, the use of DoIT
computers are available at a charge.

The Campus
System, including its connection to regional, national and international
networks, is to be used primarily for the purposes of research, teaching and
public service by faculty, staff and students.  The use of the Campus System by
for-profit and not-for-profit organizations is limited to such use as would
enhance or support such research, teaching and public service activities.  The
University of Wisconsin-Madison Division of Information Technology and University Research Park will provide guidance and assistance on questions of appropriate
or inappropriate use of the Campus System.
  

 

 

06/13/05

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