Document:

OFFICE
SPACE LEASE

    

    For

    

    Horizon
II, 3800 Horizon Boulevard, Bensalem, PA

    by
and between

    

    HORIZON
OFFICE DEVELOPMENT I, L.P.

    (as
Landlord)

    

    and

    

    WORLDGATE
SERVICE, INC.

    (as
Tenant)

    

    Date:
March 24, 2010

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    TABLE OF
CONTENTS

    
      
        	 
      	 
      	
                Page

              
	 
      	 
      	 
      
	
                1.

              	
                Definitions.

              	
                3

              
	
                2.

              	
                Premises.

              	
                3

              
	
                3.

              	
                Completion
      of Premises.

              	
                3

              
	
                4.

              	
                Commencement
      Date.

              	
                4

              
	
                5.

              	
                Use
      of Premises.

              	
                4

              
	
                6.

              	
                Fixed
      Basic Rent.

              	
                5

              
	
                7.

              	
                Real
      Estate Taxes and Operating Expenses.

              	
                6

              
	
                8.

              	
                Tenant’s
      Expense Payment.

              	
                13

              
	
                9.

              	
                Interest
      and Late Charge.

              	
                15

              
	
                10.

              	
                Insurance.

              	
                15

              
	
                11.

              	
                Repairs
      and Maintenance.

              	
                18

              
	
                12.

              	
                Utilities
      and Services.

              	
                19

              
	
                13.

              	
                Regulation
      Compliance.

              	
                22

              
	
                14.

              	
                Signs.

              	
                22

              
	
                15.

              	
                Alterations,
      Additions and Fixtures.

              	
                22

              
	
                16.

              	
                Mechanic’s
      Liens.

              	
                24

              
	
                17.

              	
                Landlord’s
      Right of Entry.

              	
                25

              
	
                18.

              	
                Damage
      by Fire or Other Casualty.

              	
                26

              
	
                19.

              	
                Non-Abatement
      of Rent.

              	
                27

              
	
                20.

              	
                Indemnification.

              	
                27

              
	
                21.

              	
                Condemnation.

              	
                27

              
	
                22.

              	
                Quiet
      Enjoyment.

              	
                29

              
	
                23.

              	
                Rules
      and Regulations.

              	
                29

              
	
                24.

              	
                Assignment
      and Sublease.

              	
                29

              
	
                25.

              	
                Relocation.

              	
                32

              
	
                26.

              	
                Subordination.

              	
                33

              
	
                27.

              	
                Curing
      Tenant’s Defaults.

              	
                33

              
	
                28.

              	
                Surrender.

              	
                33

              
	
                29.

              	
                Defaults-Remedies.

              	
                34

              
	
                30.

              	
                Condition
      of Premises.

              	
                37

              
	
                31.

              	
                Hazardous
      Substances.

              	
                37

              
	
                32.

              	
                Recording.

              	
                38

              
	
                33.

              	
                Brokers’
      Commission.

              	
                38

              
	
                34.

              	
                Notices.

              	
                38

              
	
                35.

              	
                Irrevocable
      Offer; No Option.

              	
                39

              
	
                36.

              	
                Inability
      to Perform; Damages.

              	
                40

              
	
                37.

              	
                Survival.

              	
                40

              
	
                38.

              	
                Corporate
      Tenants.

              	
                40

              
	
                39.

              	
                Tenant
      Representations and Warranties.

              	
                41

              
	
                40.

              	
                Waiver
      of Invalidity of Lease.

              	
                41

              
	
                41.

              	
                Security
      Deposit.

              	
                41

              
	
                42.

              	
                Estoppel
      Certificate.

              	
                41

              
	
                43.

              	
                Rights
      Reserved by Landlord.

              	
                42

              

      

    

    
      
         

      

      
        i

        
          

        

      

      
         

      

    

    

    
      
        	
                44.

              	
                Miscellaneous.

              	
                43

              
	
                45.

              	
                Additional
      Definitions.

              	
                44

              
	
                46.

              	
                Renewal
      Option.

              	
                45

              
	
                47.

              	
                Anti-Terrorism
      Provisions.

              	
                47

              
	
                48.

              	
                ERISA.

              	
                47

              
	
                49.

              	
                TENANT
      WAIVER.

              	
                47

              
	
                50.

              	
                Early
      Termination.

              	
                48

              
	
                51.

              	
                Tenant’s
      Right of First Offer.

              	
                49

              

      

    

    
      
         

      

      
        ii

        
          

        

      

      
         

      

    

    THIS
OFFICE SPACE LEASE (this “Lease”) is made this 24th day of March, 2010 (the
“Effective Date”) between HORIZON OFFICE DEVELOPMENT
I, L.P., a
Delaware limited partnership (herein referred to as “Landlord”) whose address is
2701 Renaissance Boulevard, 4th Floor,
King of Prussia, PA 19406 and WORLDGATE SERVICE, INC., a
Delaware corporation (herein referred to as “Tenant”) whose address is 3190
Tremont Avenue, Trevose, PA 19053.

     

    PREAMBLE

     

    BASIC
LEASE PROVISIONS AND DEFINITIONS

     

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

     

    A.    ADDITIONAL
RENT shall mean all sums in addition to Fixed Basic Rent payable by
Tenant to Landlord or to third parties pursuant to the provisions of the
Lease.

     

    B.    BROKER(S)
shall mean Beacon Commercial Real Estate, LLC, on behalf of Tenant, and RealVest
Advisors, L.P., on behalf of Landlord.

     

    C.    BASE
YEAR shall mean the period of twelve (12) consecutive months following
the Commencement Date, provided that if the Commencement Date falls on a day
other than the first (1st) day of
a calendar month, the Base Year shall be the period of twelve (12) consecutive
months following the first (1st) day of
the calendar month following the Commencement Date.

     

    D.    BUILDING
shall mean the building known as Horizon II, 3800 Horizon Boulevard, Bensalem,
PA, at the Horizon Corporate Center (the “Project”) and located on the Property
containing approximately 214,679 rentable square feet of space as set forth on
Exhibit
B.  The Project is subject to that certain Amended and Restated
Declaration of Protective Covenants and Reservation of Easements for Horizon
Corporate Center dated June 24, 2005, as same may be amended from time to
time, and that certain Declaration of Easements dated November 4, 2004,
relating to a portion of Horizon Corporate Center as same may be amended from
time to time (collectively, the “Declaration”).

     

    E.    BUILDING
HOLIDAYS shall be those holidays listed on Exhibit
D to this Lease.

     

    F.    COMMENCEMENT
DATE shall have the meaning ascribed to such term in Section 4 of this
Lease.

     

    G.    EXHIBITS
shall be the following, attached to this Lease and incorporated in this Lease
and made a part of this Lease:

     

    
      
        
          	
                  Exhibit A

                	
                  Premises

                
	
                  Exhibit A-1

                	
                  Tenant’s
      Reserved Parking Spaces

                
	
                  Exhibit B

                	
                  Legal
      Description of Property

                
	
                  Exhibit C

                	
                  Work
      Letter

                
	
                  Exhibit D

                	
                  Building
      Holidays

                

        

      

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

    
      
        
          	
                  Exhibit E

                	
                  Janitorial
      Specifications

                
	
                  Exhibit F

                	
                  Rules
      and Regulations

                
	
                  Exhibit G

                	
                  Tenant
      Estoppel Certificate

                
	
                  Exhibit H

                	
                  Confirmation
      of Lease Term

                
	
                  Exhibit I

                	
                  Space
      Design Methodology

                
	
                  Exhibit J

                	
                  Non
      Disclosure Agreement

                
	
                  Exhibit K

                	
                  Guaranty
      Agreement

                
	
                  Exhibit L

                	
                  Existing
      Lease

                
	
                  Exhibit M

                	
                  Sketch
      of Proposed Monument Sign

                
	
                  Exhibit N

                	
                  Form
      of Escrow Agreement

                
	
                  Exhibit O

                	
                  Agreed
      Form of SNDRA with Current Lender

                   

                
	
                  Exhibit P

                	
                  Sample
      Early Termination Fee
Calculation

                

        

      

    

    

    H.    FIXED
BASIC RENT shall be calculated and payable as follows:

     

    
      
        
          
            	
                    Months

                  	 	
                    Rentable

                  	 	 	
                    Rate
      Per Rentable

                  	 	 	
                    Yearly

                  	 	 	
                    Monthly

                  	 
	 
      	 	
                    Square
      Feet

                  	 	 	
                    Square
      Foot

                  	 	 	
                    Rate

                  	 	 	
                    Installment

                  	 
	
                    1–5

                  	 	 	18,713	 	 	$	0.00	 	 	$	0.00	 	 	$	0.00	 
	
                    6–17

                  	 	 	18,713	 	 	$	24.00	 	 	$	449,112.00	 	 	$	37,426.00	 
	
                    18–29

                  	 	 	18,713	 	 	$	24.50	 	 	$	458,468.50	 	 	$	38,205.71	 
	
                    30–41

                  	 	 	18,713	 	 	$	25.00	 	 	$	467,825.00	 	 	$	38,985.42	 
	
                    42–53

                  	 	 	18,713	 	 	$	25.50	 	 	$	477,181.50	 	 	$	39,765.13	 
	
                    54–65

                  	 	 	18,713	 	 	$	26.00	 	 	$	486,538.00	 	 	$	40,544.83	 
	
                    66–77

                  	 	 	18,713	 	 	$	26.50	 	 	$	495,894.50	 	 	$	41,324.54	 
	
                    78–89

                  	 	 	18,713	 	 	$	27.00	 	 	$	505,251.00	 	 	$	42,104.25	 

          

        

      

    

    

    I. GUARANTOR
shall mean WorldGate Communications, Inc.  Contemporaneous with the
execution of this Lease, Guarantor shall execute a guaranty agreement in the
form attached hereto as Exhibit K (the “Guaranty”).

     

    J. PERMITTED
USE shall mean engineering, research, development, laboratory and general
office use and any other ancillary uses permitted by applicable law and for no
other purpose, subject to all applicable laws and the provisions of this
Lease.

     

    K.    PREMISES
shall be approximately eighteen thousand seven hundred thirteen (18,713)
rentable square feet on the first level of the office portion of the Building
(and the second floor of the overall Building) as set forth on Exhibit
A to this Lease.

     

    L.    PROPERTY
shall mean the Building and the lot, tract or parcel of land on which the
Building is situated and all improvements thereto as more particularly described
on Exhibit
B attached hereto.

     

    M.    SECURITY
DEPOSIT shall be equal to five (5) months of Fixed Basic Rent at the rate
payable during months 6 through 17, subject to increase in accordance with
Section 5(a) hereof, which shall be held in accordance with Section 41 of the
Lease.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    N.    INTENTIONALLY
OMITTED.

     

    O.    TENANT’S
OPERATING EXPENSES SHARE shall mean 8.72% (calculated by dividing the
total rentable square feet of the Premises by the total rentable square feet of
the Building), subject to Landlord’s confirmation and adjustment of the rentable
square feet contained within the Premises in accordance with Section 3 of the
Lease.

     

    P. TERM
shall mean the period of time commencing on the Commencement Date (as defined in
Section 4 of the Lease) and ending on the date which is seven (7) years five (5)
months following the Commencement Date, plus the number of days remaining in the
calendar month in which such date occurs unless otherwise terminated or extended
pursuant to the terms of this Lease.

     

    For and
in consideration of the covenants contained in this Lease, and upon the terms
and conditions set forth in this Lease, Landlord and Tenant, intending to be
legally bound, agree as follows:

     

    1.   
Definitions.  The
definitions set forth in the preceding Preamble shall apply to the same
capitalized terms appearing in this Lease.  Additional definitions are
contained in Section 45 and throughout this Lease.

     

    2.    Premises.  Landlord
hereby represents that it owns fee simple title to the Building and the
Property.  Landlord hereby demises and leases the Premises to Tenant
and Tenant hereby leases and takes the Premises from Landlord for the Term and
upon the terms, covenants, conditions, and provisions set forth in this Lease,
including the Preamble.  Tenant’s interest in the Premises as tenant
shall include the right, in common with Landlord and other occupants of the
Building, to use driveways, sidewalks, loading and parking areas, lobbies,
hallways and other facilities which are located within the Property and which
are designated by Landlord from time to time for the use of all of the tenants
of the Building (the “Common Facilities”) as well as all the Common Elements as
defined in the Declaration.  Tenant’s interest in the Premises shall
include, at no cost to Tenant, the right to use up to four (4) parking spaces
for every one thousand (1,000) rentable square feet within the Premises, which
parking spaces shall all be unreserved except for four (4) parking spaces
located in the areas shown on Exhibit
A-1 which shall be reserved for Tenant’s exclusive use and labeled
accordingly.

     

    3.    Completion of Premises.  The
Premises shall be completed in accordance with the Work Letter attached hereto
as Exhibit
C (the “Work Letter”).

     

    Landlord
shall notify Tenant in writing within thirty (30) days of Landlord’s receipt of
all permits required to begin the Premises Work (as defined in the Work Letter)
(the “Permit Notice”).  The “Target Date” shall be the date that is
ninety (90) days after Landlord’s delivery to Tenant of the Permit Notice (the
“Target Date”).

     

    Except as
expressly set forth herein, if the Premises are not Substantially Completed (as
defined in the Work Letter) and delivered to Tenant on or before the Target Date
for any reason, whether or not within Landlord’s control, Landlord shall not be
subject to any liability to Tenant and no such failure to deliver the Premises
by the Target Date or any other date shall in any respect affect the validity or
continuance of this Lease or any obligations of Tenant hereunder or extend the
Term.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    Reference
is hereby made to that certain Agreement of Lease (the “Current Lease”) between
Tenant as tenant and 3190 Tremont LLC as landlord (the “Current Landlord”)
executed on April 2, 2009, and Tenant represents and warrants that a true,
accurate and complete copy of the Current Lease is attached hereto as Exhibit
L.  In no event shall Tenant notify Current Landlord of its decision
to terminate the Existing Lease, a copy of which termination notice shall be
provided simultaneously to Landlord, prior to Tenant’s receipt of the Permit
Notice.  In the event the Commencement Date does not occur within
ninety (90) days of Landlord’s delivery to Tenant of the Permit Notice, Landlord
will promptly reimburse Tenant (but in any event within ten (10) business days
following Tenant’s notice thereof to Landlord) for the incremental, actual, out
of pocket costs and expenses incurred by Tenant due to such delay, including (a)
any holdover rent or holdover damages payable by Tenant under the Current Lease,
provided that Landlord shall have the right to contact Current Landlord directly
to mitigate or verify such damages and Tenant shall cooperate with Landlord at
no out of pocket cost to Landlord in such efforts and (b) warehousing, storage,
moving and subcontractor expenses, provided that Tenant shall use commercially
reasonable efforts to mitigate the same.  If the Commencement Date
does not occur within one hundred twenty (120) days of Landlord’s delivery to
Tenant of the Permit Notice, then Landlord shall also credit Tenant with one day
of free Rent (which shall be applied commencing on the first (1st) day of
the sixth (6th) month
of the Term) for each day that the Commencement Date is delayed beyond such one
hundred twenty (120) day period.  If the Commencement Date does not
occur within one hundred fifty (150) days of Landlord’s delivery to Tenant of
the Permit Notice, then Tenant shall have the right to terminate the Lease upon
written notice to Landlord, provided that Tenant may not deliver such
termination to Landlord at any time after Landlord notifies Tenant in writing
that the Premises are Substantially Completed.

     

    Within
fifteen (15) days following Substantial Completion of the Premises, Landlord
shall have the Premises measured by Space Design, Incorporated in accordance
with the Space Design methodology described on Exhibit
I attached hereto.  If the rentable area of the Premises as so
measured and certified is different than the area indicated in the Preamble, the
Fixed Basic Rent and Tenant’s Operating Expenses Share shall be adjusted to
reflect the actual rentable area of the Premises, but in no event shall the
Fixed Basic Rent and Tenant’s Operating Expenses Share be increased by more than
one hundred and three percent (103%) of the amounts set forth in this Lease as
of the date hereof.

     

    4.   
Commencement Date.  The Term
shall commence on the date (the “Commencement Date”) which is the later to occur
of (a) the Target Date, or (b) three (3) days after the Premises are
Substantially Completed.  Upon Landlord’s request, Tenant shall
execute the Confirmation of Lease Term attached hereto as Exhibit
H.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    5.   
Use of Premises.

    a) 
Tenant shall not be required to occupy the Premises throughout the Term and
shall use the same for, and only for, the Permitted Use specified in the
Preamble. Notwithstanding the foregoing sentence or anything to the contrary
contained herein, but excluding a failure to occupy all or a substantial portion
of the Premises pursuant to Section 12(c) as a result of a failure in HVAC,
utilities or elevator service, Section 18 as a result of casualty or Section 21
as a result of condemnation if Tenant shall at any time during the Term not
occupy all or a substantial portion of the Premises, then Tenant shall be
required to provide Landlord with at least thirty (30) days prior written notice
thereof, and, concurrent with the delivery of such written notice, Tenant shall
increase the Security Deposit held by Landlord pursuant to the terms hereof by
an incremental three (3) months of the then-applicable Fixed Basic Rent
hereunder (or, if during the first five (5) months of the Term, then the Fixed
Basic Rent applicable as of the sixth (6th) month
of the Term).  Landlord represents and warrants that the zoning
applicable to the Premises as of the date hereof permits the use of the Premises
for the Permitted Use (the “Zoning Representation”).  Tenant shall not
make, or permit to be made, any unseemly or disturbing noises or odors that
interfere with other tenants or those having business with them and shall not
interfere with other tenants or those having business with
them.  Tenant shall keep all mechanical apparatus in the Premises free
of vibration and noise which may be transmitted beyond the limits of the
Premises.  Tenant shall not overload any floor or part thereof in the
Premises or the Building, including any public corridors or elevators therein,
bringing in, placing, storing, installing or removing any large or heavy
articles, and Landlord may prohibit, or may direct and control the location and
size of, safes and all other heavy articles, and may require, at Tenant’s sole
cost and expense, supplementary supports of such material and dimensions as
Landlord may deem necessary to properly distribute the weight.

     

    b) 
Landlord represents and warrants that nothing in the Declaration conflicts with
the provisions of this Lease or would prevent Tenant from utilizing the Premises
for the Permitted Use.  Notwithstanding anything to the contrary
contained herein, to the extent that the Declaration is amended or modified at
any time in a manner that would increase Landlord’s costs of compliance
therewith, Tenant shall not be responsible for paying Tenant’s Operating
Expenses Share or any other contribution towards such increased
costs.  Notwithstanding anything to the contrary contained herein,
Landlord shall not permit the Declaration to be amended or modified in any way
that would prevent Tenant’s use of the Premises for engineering, research,
development, laboratory and general office use and no amendment or modification
to the Declaration shall increase Tenant’s liabilities or responsibilities
beyond those set forth in this Lease or restrict Tenant’s rights in a manner
that is inconsistent with the express provisions of this Lease.

     

    6.   
Fixed Basic Rent.  Commencing
on the Commencement Date, Tenant shall pay, throughout the Term, the annual
Fixed Basic Rent in the amount specified in the Preamble, without notice or
demand and, except as otherwise contemplated by this Lease, without setoff,
deduction, counterclaim or reductions, in equal monthly installments equal to
one-twelfth (1/12) of the annual Fixed Basic Rent (specified as Monthly
Installments in the Preamble), in advance, on the first day of each calendar
month during the Term.  If the Commencement Date falls on a day other
than the first day of a calendar month, the Fixed Basic Rent for the partial
calendar month in which the free Fixed Basic Rent period expires and Fixed Basic
Rent is first due and payable hereunder shall be due and payable for such month,
apportioned on a per diem basis for the period between the five (5) month
anniversary of the Commencement Date and the first day of the next first full
calendar month in the Term and such apportioned sum shall be paid on the five
(5) month anniversary of the Commencement Date.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    7.   
Real Estate Taxes and Operating Expenses.

     

    a) 
The following terms shall be defined as hereinafter provided:

     

    (i)          “Real Estate Taxes”
shall mean all taxes, liens, charges, imposts and assessments of every kind and
nature, ordinary or extraordinary, foreseen or unforeseen, general or special,
levied, assessed or imposed by any governmental authority with respect to the
Building or allocated to the Building pursuant to the Declaration, as well as
all fees or assessments payable on account of the Building being located in any
special services district.  Notwithstanding the
foregoing:

     

    (1) 
if at any time during the Term the present system of ad valorem taxation of real
property shall be changed or supplemented so that in lieu of or in addition to
the ad valorem tax on real property there shall be assessed on Landlord or the
Building (or the Property and allocated to the Building pursuant to the
Declaration) any tax of any nature which is imposed in whole or in part, in
substitution for, addition to, or in lieu of any tax which would otherwise
constitute a Real Estate Tax, such tax shall be included within the term “Real
Estate Taxes,” but only to the extent that the same would be payable if the
Property were the only property of Landlord.  Such tax may include,
but shall not be limited to, a capital levy or other tax on the gross rents or
gross receipts with respect to the Property, or a federal, state, county,
municipal or other local income, franchise, profit, excise or similar tax,
assessment, levy or charge measured by or based, in whole or in part, upon any
such gross rents or gross receipts;

     

    (2) 
Real Estate Taxes shall also encompass all of Landlord’s expenses, including but
not limited to attorney’s fees and expenses, incurred by Landlord in any effort
to minimize Real Estate Taxes whether by contesting proposed increases in
assessments, applying for the benefit of any tax abatement program available for
the Property, appealing the denial of any such tax abatement, or contesting any
challenge to the validity of any tax abatement program or its applicability to
the Property or by any other means or procedures appropriate in the
circumstances; provided, however, that under no circumstances shall Landlord
have any obligation to undertake any contest, appeal or other procedure to
minimize Real Estate Taxes or to obtain or maintain the benefits of any tax
abatement program for the Property; and

     

    (3) 
except as otherwise provided in this Subsection 7(a)(i) above, there shall be
excluded from Real Estate Taxes all net income, excess profit, excise, transfer, franchise, estate,
succession and inheritance taxes, penalties due to Landlord’s lateness or
failure to pay taxes when due and transfer taxes imposed on
Landlord,  provided that any business privilege taxes shall be
included in Real Estate Taxes.

     

    (ii)          “Operating
Expenses” shall mean

     

    (1) 
Any expenses incurred by Landlord in connection with the operation, repair,
maintenance, protection and management of the Property that are in categories
reasonably consistent with the practice (the “Industry Practices”) generally
used by other landlords of Class A buildings in the same geographic market as
the Building that are funded with institutional debt and equity sources and/or
which are affiliated with publicly traded REITs, including by way of example
rather than of limitation, the following:

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    (a) 
Wages, salaries, fees and other compensation and payments and payroll taxes for
all employees of Landlord who spend a significant amount of their employment
(excluding independent contractors but including employees who do not work full
time) performing services rendered in connection with the operation, repair,
maintenance, protection and management of the Property, including, without
limitation:  elevator operators; elevator starters; window cleaners;
porters; janitors; maids; miscellaneous handymen; carpenters; engineers;
firemen; mechanics; electricians; plumbers; landscapers; insurance risk
managers; building superintendent and assistants; property manager; and clerical
and administrative personnel, provided that the foregoing only shall be included
in Operating Expenses in proportion to the amount of time that such employees
spend performing services applicable to the Property versus the amount of time
that such employees spend performing services applicable to other properties, if
applicable.  Landlord may contract for any of the foregoing to be
performed by independent contractors, in which event all sums paid to such
independent contractors shall be included within Operating Expenses pursuant to
Subsection 7(a)(ii)(1)(q) below.

     

    (b) 
The cost of employee uniforms, and the cleaning, pressing and repair
thereof.

     

    (c) 
Cleaning costs for the Property, including the facade, windows and sidewalks,
all costs for snow and rubbish removal and the costs of all labor, supplies,
equipment and materials incidental to such cleaning.

     

    (d) 
Premiums and other charges incurred by Landlord with respect to all insurance
relating to the Property and the operation and maintenance thereof, including
without limitation:  all risk of physical damage or fire and extended
coverage insurance; public liability insurance; elevator insurance; workers’
compensation insurance; boiler and machinery insurance; sprinkler leakage
insurance; rent insurance; terrorism insurance (but only if then required by
institutional lenders holding mortgages on comparable office properties); flood
insurance; environmental insurance; health, accident, and group life insurance
for employees at or below the level of property manager; and any other insurance
reasonably required by Landlord’s unaffiliated institutional mortgage
lenders.

     

    (e) 
Costs incurred for operation, service, maintenance, inspection, repairs and
alterations of the Property, including the heating, air-conditioning,
ventilating, plumbing, outdoor underground heating coils, electrical and
elevator systems of the Building and the costs of labor, materials, supplies and
equipment used in connection with all of the aforesaid items.

     

    (f) 
Sales and excise taxes and the like upon any of the expenses enumerated
herein.

     

    (g) 
Management fees of the managing agent for the Building, if any, at prevailing
market rates (even if Managing Agent is an affiliate), not to exceed four
percent (4%) of gross rents.

     

    (h) 
The cost of tools, maintenance equipment and supplies and any replacement
thereof reasonably necessary for maintenance, repair, protection, management and
operation of the Property used exclusively for the Property.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    (i) 
The cost of repainting or otherwise redecorating the Common Facilities, and the
cost of displays or decorations for the lobby, balconies and other public
portions of the Property except for artwork or non-deminimis
decorations.

     

    (j) 
The cost of telephone, facsimile and courier services, postage and delivery and
overnight delivery charges, office supplies, maintenance and repair of office
equipment, and similar costs, in each case used exclusively in connection with
the operations of the Property.

     

    (k) 
The costs of licenses, permits and similar fees and charges required for the
operation of the Building or the Property generally but excluding those
specifically obtained for the occupancy of Tenant or a specific
tenant.

     

    (l) 
Reasonable, documented auditing and accounting fees charged by third parties
including accounting fees incurred in connection with the preparation and
certification of the Operating Expense Statements, excluding fees incurred in
connection with any audit requested by Tenant or other tenants of the
Building.

     

    (m) 
All costs incurred by Landlord to comply with governmental requirements, whether
federal, state or municipal but only to the extent first enacted or becoming
applicable to the Property after the Commencement Date.

     

    (n) 
All costs and expenses associated with the acquisition and installation of any
energy or cost saving devices but only to the extent of savings realized
thereby.

     

    (o) 
Real Estate Taxes, as defined above.

     

    (p) 
Cost of independent contractors performing services at the Property including,
but not limited to, cleaning, janitorial, window-washing, rubbish removal,
security, landscaping, snow and ice removal services, electrical, painting,
plumbing, elevator, heating, ventilation and air conditioning maintenance and
repair and all reasonable fees due such independent contractors.

     

    (q) 
Reasonable, documented third party legal fees with respect to the Property other
than those incurred in the negotiation or enforcement of tenant leases
(including any defaults).

     

    (r) 
Any and all other expenditures of Landlord, including all repairs, replacements
and improvements which are appropriate for the continued operation of the
Building as a first-class building (including capital expenditures), which are
properly expensed in accordance with generally applied real estate accounting
practices consistently applied in accordance with Industry Practices with
respect to the operation, repair, maintenance, protection and management of
first-class office buildings in the locality of the Building.

    
      
         

      

      
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    (s) 
If Landlord shall purchase any item of capital equipment or make any capital
expenditure as described in Subsections 7(a)(ii)(1)(m), 7(a)(ii)(1)(n) or
7(a)(ii)(1)(r) above, (jointly the “Capital Expenditures”) then the costs for
same shall be amortized on a straight line basis beginning in the year of
installation and continuing for the useful life thereof, with a per annum
interest factor equal to the rate of Interest on the date of purchase of any
item described in Subsections 7(a)(ii)(1)(m), 7(a)(ii)(1)(n) or
7(a)(ii)(1)(r).  Only the amount of amortization for such costs shall
be included in Operating Expenses for each Operating Year to which the
amortization relates.  Tenant agrees that, except as expressly set
forth herein, the determination by Landlord’s accountants of the useful life of
the subject of such Capital Expenditures shall be made in accordance generally
applied real estate accounting practices consistently applied in accordance with
Industry Practices.  If Landlord shall lease such items of capital
equipment, then the lease shall be included in Operating Expenses for each
Operating Year in which they are incurred.  Notwithstanding the
foregoing, as to subsection 7(a)(ii)(1)(n), Landlord may, in lieu of the above,
elect to include up to the full amount of any such savings in each Operating
Year (beginning with the Operating Year in which the equipment is placed in
service) as an Operating Expense until Landlord has recovered thereby the cost
of installation of said devices or equipment and interest thereon as above
provided, even if the result of such application will result in the amortization
of such costs over a period shorter than the useful life of such
installation.  Landlord shall notify Tenant in writing if Landlord
elects to apply such savings to the cost of such equipment and shall include a
statement of the amount of such savings in the Operating Expense Statement for
each applicable Operating Year.  Operating Expenses shall thereafter
be reduced by the amount of any previous Capital Expenditures included therein
expensed pursuant to this Subsection 7(a)(ii)(1)(s) when such amortization has
been completed.

     

    (t) 
Fees or assessments payable by Landlord with respect to the Property or the
Building pursuant to the Declaration.

     

    (2) 
Operating Expenses shall be “net” and, for that purpose, shall be reduced by the
amounts of any reimbursement or credit received by Landlord with respect to an
item of cost that is included within Operating Expenses (other than
reimbursements to Landlord by tenants of the Building pursuant to operating
expense provisions of any lease).

     

    (3) 
In determining Operating Expenses for any Operating Year, including the
Operating Expenses for the Base Year, during which less than ninety-five percent
(95%) of the rentable area of the Building shall have been occupied by tenants
for more than thirty (30) days during such year, the actual Operating Expenses
for such year that vary from time to time with occupancy and use, as reasonably
determined by Landlord, shall be increased to the amount which normally would
have been incurred for such Operating Year had such occupancy of the Building
been ninety-five percent (95%) throughout such Operating Year, as reasonably
determined by Landlord.  Notwithstanding the foregoing, in no event
shall Landlord receive reimbursement of more than one hundred percent (100%) of
the Building’s actual Operating Expenses as a result of the operation of this
Subsection 7(a)(ii)(3) or otherwise.

     

    (4) 
Notwithstanding the provisions of Section 7(a)(ii)(1), “Operating Expenses”
shall not include expenditures for any of the following:

     

    (a) 
Any capital expenditure, improvement or addition made to the Building, including
the cost to prepare space for occupancy by a new tenant, except as set forth in
Subsections 7(a)(ii)(1)(m), 7(a)(ii)(1)(n), 7(a)(ii)(1)(r) and 7(a)(ii)(1)(s)
above.

    
      
         

      

      
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    (b) 
Repairs or other work occasioned by fire, windstorm or other casualty or hazard
if as a result thereof Tenant terminates this Lease pursuant to the terms hereof
or, except for Landlord’s deductibles, to the extent that such risk was insured
or was required by Landlord to be insured in accordance with the terms hereof or
by Landlord’s unaffiliated mortgage lenders.

     

    (c) 
Leasing or brokerage commissions, costs, fines or penalties imposed as a result
of late or delinquent payments, lease concessions (including rent abatements,
and construction and improvement allowances), and advertising expenses incurred
in leasing or procuring new tenants and any costs for preparing space for
tenants of the Building (including, but not limited to, renovations, signage to
the extent Landlord has agreed to pay for the same pursuant to Section 14 hereof
or to the extent for the benefit specifically of tenants other than Tenant, any
permit or license fees due in connection therewith or decorating
costs).

     

    (d) 
Repairs or rebuilding necessitated by condemnation if as a result thereof Tenant
terminates this Lease pursuant to the terms hereof or to the extent that
Landlord has received condemnation proceeds for such repairs or
rebuilding.

     

    (e) 
Depreciation and amortization of the Building, other than as permitted pursuant
to Subsection 7(a)(ii)(1)(m), 7(a)(ii)(l)(n), 7(a)(ii)(l)(r), or
(7(a)(ii)(l))(s).

     

    (f) 
The salaries and benefits of any individual with title or responsibilities
higher than that of property manager for the Building.

     

    (g) 
Debt service payments on any indebtedness applicable to the Property, including
any mortgage debt, cost of financing or refinancing.

     

    (h) 
Costs and expenses incurred in selling, syndicating, financing, mortgaging or
hypothecating any of Landlord’s interests in the Building or
Property.

     

    (i) 
Deductibles under Landlord’s insurance policies in excess of Twenty-Five
Thousand Dollars ($25,000).

     

    (j) 
Any service specifically performed for Tenant or other tenants of the Building
which is not generally offered to tenants of the Building.

     

    (k) 
Any expenses incurred in connection with any subdivision of the
Property.

     

    (l) 
Penalties, fines or interest on any taxes required to be paid.

     

    (m) 
Advertising or promotional expenses incurred or dues paid to trade
organizations.

     

    (n) 
Above-market management or independent contractor fees paid to affiliates of
Landlord.

    
      
         

      

      
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    (o) 
Costs and expenses of installing, operating or maintaining concessions on
specialty services, such as a child-care facilities, dining facility or exercise
room.

     

    (p) 
Costs and expenses in connection with rooftop communications equipment of
Landlord or other persons, tenants, or occupants of the Building if such
communications equipment is not generally available to all tenants or occupants
of the Building.

     

    (q) 
Increased insurance premiums to the extent attributable to another tenant in the
Building or insurance not customarily carried by other reasonably prudent
landlords in comparable office properties in the surrounding market or
customarily required by unaffiliated lenders holding mortgages on comparable
office properties.

     

    (r) 
Costs and expenses associated with the clean-up of Hazardous Substances or
environmental remediation of any kind unless caused by Tenant or its agents,
employees, or contractors.

     

    (s) 
Costs and expenses associated with compliance with applicable laws or
regulations to the extent of non-compliance as of the Commencement
Date.

     

    (t) 
Costs, expenses, fines or penalties imposed upon Landlord for violating any law,
rule or regulation in effect as of the Commencement Date or for breaching its
obligations under any lease.

     

    (u) 
Costs and expenses to comply with or fulfill Landlord’s obligations with respect
to any covenants, representations or warranties of Landlord, to the extent that
Landlord has expressly agreed to pay for such items at its own cost and expense
as expressly provided herein, including by way of example but not limitation the
signage provided to Tenant pursuant to Section 14 hereof or the construction of
the Premises Work excluding any Premises Work Costs (as defined in the Work
Letter).

     

    (v) 
Costs and expenses associated with repairing latent defects at the Premises Work
or the original construction of the Building or any costs for repair,
maintenance or replacement of the floor slab of the Building, unless caused by
improper loading or other misconduct by Tenant or its agents, employees, or
contractors.

     

    (w) 
Costs and expenses arising from the grossly negligent act or willful misconduct
of Landlord or its agents, or any other tenant, or any vendors, contractors,
subcontractors or providers of materials or services selected, hired or engaged
by Landlord or its employees, agents, partners and affiliates.

     

    (x) 
Interest on encumbrances; ground rents; expenditures for which Landlord is
reimbursed by other third parties (for example, as reimbursed through insurance
or a specific tenant request for an item of work); costs of any additions to the
Building;

     

    (y) 
Costs and expenses arising from any commercial concession operated by Landlord
or its employees, agents, partners and affiliates;

    
      
         

      

      
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    (z) 
Costs and expenses of any parties, ceremonies or other events for tenants or
third parties which are not tenants of the Building, whether conducted in the
Building or in any other location;

     

    (aa) 
Reserves of any kind, including replacement reserves, and reserves for bad debts
or lost rent or any similar charge not involving the payment of money to third
parties;

     

    (bb) 
Entertainment and travel costs and expenses of Landlord or its employees,
agents, partners and affiliates, except for travel in the ordinary course of
business for personnel assigned to serve the Building;

     

    (cc) 
Costs and expenses to the extent that Landlord receives a credit, refund or
discount for the same;

     

    (dd) 
Charitable contributions;

     

    (ee) 
Costs and expenses related to Landlord’s general overhead expenses to the extent
such costs and expenses are not incurred in accordance with a sub-paragraph of
Section 7(a)(ii)(1);

     

    (ff) 
Other categories of costs and expenses which would be inconsistent with Industry
Practices provided that any costs and expenses which are listed in the
sub-paragraphs of Section 7(a)(ii)(1) shall be deemed consistent with Industry
Practices for all purposes of this Lease.

     

    (iii)           “Operating
Year” shall mean each calendar year occurring either in whole or in part during
the Term.

     

    (iv)           “Operating
Expense Statement” shall mean a statement provided by Landlord, setting forth in
reasonable detail:  (a) the Operating Expenses for the Operating Year
(or portion thereof if less than a full Operating Year) immediately preceding
the Operating Year in which the statement is issued, reasonably detailed by
major categories and labeled as controllable or noncontrollable expenses, (b)
Tenant’s Expense Payment (defined in Section 8) for such preceding Operating
Year, prorated if only a part of the Operating Year falls within the Term, (c)
the amount of payments made by Tenant on account of Tenant’s Expense Payment
during such preceding Operating Year, (d) the amount of payments of the Monthly
Operating Expense Estimate (defined in Subsection 8(a)(i)) made to date by
Tenant in the Operating Year in which the Expense Statement is issued, and (e)
the Monthly Operating Expense Estimate for the Operating Year in which the
Operating Expense Statement is issued.

     

    (v)           “Monthly
Operating Expense Estimate” shall have the meaning specified in Subsection
8(a)(i)(1) hereof.

    
      
         

      

      
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    8.   
Tenant’s Expense Payment.

     

    a) 
Commencing on the first day of the first month following completion of the Base
Year, Tenant shall pay to Landlord as Additional Rent hereunder an amount equal
to Tenant’s Operating Expenses Share of the total dollar increase, if any, in
Operating Expenses for such Operating Year over the Operating Expenses for the
Base Year (“Tenant’s Expense Payment”).  For any portion of an
Operating Year less than a full twelve (12) month period occurring within the
Term, Tenant’s Expense Payment shall be prorated on a per diem
basis.  Notwithstanding anything in this Lease to the contrary,
Landlord agrees that Tenant’s Expense Payment for Controllable Expenses (as
defined below) for each Operating Year shall not increase by more than five
percent (5%) over Tenant’s Expense Payment for such Controllable Expense for the
prior Operating Year calculated on a per annum and not a cumulative
basis.  For this purpose, “Controllable Expenses” are all Operating
Expenses other than Real Estate Taxes, insurance, utilities, and snow and ice
removal.

     

    (i)           Such
Additional Rent shall be paid (or credited) in the following
manner:

     

    (1) 
Commencing on the first day of the first month following completion of the Base
Year, and continuing thereafter during each Operating Year during the Term on
the first day of each month until receipt of the next Operating Expense
Statement, Tenant will pay Landlord an amount set by Landlord sufficient to pay
Landlord’s estimate (reasonably based on the actual Operating Expenses for the
preceding Operating Year and Landlord’s projections of any anticipated increases
or decreases thereof) of Tenant’s Expense Payment for the current Operating Year
(or remaining portion thereof) (the “Monthly Operating Expense Estimate”). The
Monthly Operating Expense Estimate for a period less than a full calendar month
shall be duly prorated.

     

    (2) 
Following the end of each Operating Year following the Base Year, Landlord shall
furnish Tenant an Operating Expense Statement setting forth the information
described in Subsection 7(a)(iv) above.  The date that is thirty (30)
days following the receipt of such Operating Expense Statement shall be deemed
the “Expense Share Date.”  Landlord shall diligently endeavor to
furnish Tenant an Operating Expense Statement not later than one hundred and
fifty (150) days following the end of each Operating Year.

     

    (3) 
On the first day of the first month following receipt by Tenant of any annual
Operating Expense Statement and continuing thereafter on the first day of each
succeeding month until the issuance of the next ensuing Operating Expense
Statement, Tenant shall pay Landlord the amount of the Monthly Operating Expense
Estimate shown on the Operating Expense Statement.

    
      
         

      

      
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    (4) 
If on any Expense Share Date Tenant’s payments of the installments of the
Monthly Operating Expense Estimate for the preceding year’s Operating Expenses
are greater than Tenant’s Expense Payment for such preceding Operating Year,
Landlord shall credit Tenant with any excess, which credit may be offset by
Tenant against next due installments of Rent.  If on any Expense Share
Date Tenant’s payments of the installments of the Monthly Operating Expense
Estimate for the current Operating Year are greater than the Monthly Operating
Expense Estimate as shown on the Operating Expense Statement, Landlord shall
credit Tenant with an amount equal to the amount by which the Monthly Operating
Expense Estimate for the current Operating Year as shown on the Operating
Expense Statement multiplied by the number of months elapsed to date in the
current Operating Year (including the month in which payment is made) is less
than the aggregate amount of payments of the Monthly Operating Expense Estimate
theretofore made in the Operating Year in which the Operating Expense Statement
is issued.  If on any Expense Share Date, Tenant’s payments of
installments of the Monthly Operating Expense Estimate for the preceding year’s
Operating Expenses are less than Tenant’s Expense Payment for such preceding
Operating Year, Tenant shall pay Landlord such amount on or prior to the Expense
Share Date.  If on any Expense Share Date Tenant’s payments of the
installments of the Monthly Operating Expense Estimate for the current Operating
Year are less than the Monthly Operating Expense Estimate as shown on the
Operating Expense Statement, Tenant shall pay to Landlord on or prior to the
Expense Share Date an amount equal to the amount by which the Monthly Operating
Expense Estimate for the current Operating Year as shown on the Operating
Expense Statement multiplied by the number of months elapsed to date in the
current Operating Year (including the month in which payment is made) is greater
than the aggregate amount of payments of the Monthly Operating Expense Estimate
theretofore made in the Operating Year in which the Operating Expense Statement
is issued.  If the Term expires prior to the Expense Share Date for
the applicable Operating Year and if Tenant’s payments of the Monthly Operating
Expense Estimate exceed Tenant’s Expense Payment, Landlord shall send the
Operating Expense Statement to Tenant, and a refund from Landlord to Tenant
shall be made on the Expense Share Date.  If the Term expires prior to
the Expense Share Date for the applicable Operating Year and if Tenant’s
payments of the Monthly Operating Expense Estimate are less than Tenant’s
Expense Payment, Landlord shall send the Operating Expense Statement to Tenant,
and an appropriate payment from Tenant to Landlord shall be made on the Expense
Share Date.  Notwithstanding the foregoing, Landlord shall be entitled
in its sole discretion to credit any refund to which Tenant is entitled under
this Subsection 8(a)(i)(4) to amounts owed by Tenant to Landlord under this
Lease. The provisions of this Subsection 8(a)(i)(4) shall remain in effect
notwithstanding any termination of this Lease.

     

    (ii)           Any
Operating Expense Statement or other notice from Landlord pursuant to Sections 7
and 8 shall be deemed approved by Tenant as correct unless, within one hundred
eighty (180) days after the furnishing thereof, Tenant shall notify Landlord in
writing that it disputes the correctness of the Operating Expense Statement or
other notice, specifying in reasonable detail the basis for such assertion, or
Tenant has delivered a notice of audit of Landlord’s books and records pursuant
to Section 8(c) below.  Notwithstanding any dispute concerning any
Operating Expense Statement or other notice, Tenant shall continue to make
payments in accordance with said Operating Expense Statement pending the
resolution of such dispute.

     

    b) 
Tenant shall pay all taxes imposed upon Tenant’s furnishings, trade fixtures,
equipment or other personal property.

    
      
         

      

      
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    c) 
Tenant shall have the right, at its sole cost and expense, to inspect and/or
audit Landlord’s books and records with respect to Operating Expenses at
Landlord’s place of business or such other place Landlord regularly maintains
such books and records, within one hundred eighty (180) days following receipt
of the Operating Expense Statement, provided Tenant shall only be permitted to
inspect and/or audit Landlord’s books and records with respect to Operating
Expenses for the Operating Year that is the subject of the Operating Expense
Statement.  Tenant shall give Landlord not less than seven (7) days
prior written notice of its intention to conduct any such audit.  In
the event Tenant’s audit or inspection discloses that Landlord has overstated
the Operating Expenses in any year by more than five percent (5%), unless
Landlord establishes that such audit was manifestly in error, then Landlord
shall reimburse Tenant promptly upon demand for the reasonable out-of-pocket
costs incurred by Tenant in connection with the audit or
inspection.  Unless Tenant provides Landlord a copy of such audit of
inspection report within thirty (30) days of the completion thereof, Tenant
shall be deemed to have waived the right to make any claims with respect
thereto.  If Tenant's inspection or audit of Operating Expenses
indicates that Tenant was overcharged for Operating Expenses, unless Landlord
establishes that such audit was manifestly in error, Landlord shall promptly
repay all such overpayment to Tenant.  Tenant shall maintain the
confidentiality of the results of any audit and shall not retain an auditor or
other representative for such audit on a contingent basis.

     

    9.   
Interest and Late Charge.  Landlord
may charge a late payment charge of five percent (5%) of any installment of
Fixed Basic Rent or Additional Rent that is not paid within ten (10) days after
written notice that the same is past due, provided that Landlord shall not be
required to provide Tenant with such written notice of past due payment
obligations more than three (3) times in any twelve (12)-month period before
assessing such a late payment.  Any amount due from Tenant to Landlord
which is not paid when due shall bear interest (“Interest”) at an interest rate
equal to the Prime Rate published from time to time in the Money Rates column of
the Wall Street Journal plus four percent (4%) (or, if lower, the highest rate
then allowed under the usury laws of the Commonwealth of Pennsylvania) from the
date due until the date paid.  The right of Landlord to charge a late
charge and interest with respect to past due installments of Fixed Basic Rent
and Additional Rent is in addition to Landlord’s rights and remedies upon an
event of default.  If a due date is not specified in the Lease for any
amount payable by Tenant to Landlord hereunder, such due date shall be thirty
(30) days from Tenant’s receipt from Landlord of an invoice
therefor.

     

    10.
Insurance.

     

    a) 
Tenant’s
Insurance.

     

    (i)           Tenant
covenants and represents, such covenants and representations being specifically
designed to induce Landlord to execute this Lease, that during the entire Term,
at its sole cost and expense, Tenant shall obtain, maintain and keep in full
force and effect the following insurance:

     

    (1) 
“All Risk” property insurance against fire, theft, vandalism, malicious
mischief, sprinkler leakage and such additional perils as are now, or hereafter
may be, included in a standard extended coverage endorsement from time to time
in general use in the Commonwealth of Pennsylvania upon property of every
description and kind owned by Tenant and or under Tenant’s care, custody or
control located in the Building, the Property or within the Premises or for
which Tenant is legally liable or installed by or on behalf of Tenant, including
by way of example and not by way of limitation, furniture, trade fixtures,
fittings, installations and any other personal property (but excluding the work
done by Landlord in connection with Exhibit
C which is owned by Landlord) in an amount equal to the full replacement
cost thereof.

    
      
         

      

      
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    (2) 
Commercial General Liability Insurance coverage to include personal injury,
bodily injury, broad form property damage, operations hazard, owner’s protective
coverage, contractual liability, products and completed operations liability
naming Landlord and Landlord’s Mortgagee (hereinafter defined) or trust deed
holder as additional named insured in limits of not less than Five Million
Dollars ($5,000,000.00) provided that if Tenant’s insurer charges Tenant an
administrative charge for making a change to the name of such Landlord’s
Mortgagee (hereinafter defined) or trust deed holder from time to time after
Tenant’s initial delivery of a compliant insurance certificate to Landlord, then
Landlord shall pay such administrative charge within thirty (30) days of receipt
of the invoice from Tenant’s insurer.

     

    (3) 
Business interruption insurance in such amounts as will reimburse Tenant for
direct or indirect loss of earnings attributable to all perils commonly insured
against by prudent tenants or assumed by Tenant pursuant to this Lease or
attributable to prevention or denial of access to the Premises or Building as a
result of such perils.

     

    (4) 
Workers’ Compensation insurance in form and amount as required by
law.

     

    (5) 
Any other form or forms of insurance or any increase in the limits of any of the
aforesaid enumerated coverages or other forms of insurance as Landlord or the
Mortgagees or ground lessors (if any) of Landlord may reasonably require from
time to time, provided that such coverage is available at a commercially
reasonable rate, if in the reasonable opinion of Landlord or said Mortgagees or
ground lessors said coverage and/or limits become inadequate or less than that
commonly maintained by prudent tenants in similar buildings in the area by
tenants making similar uses.

     

    (ii)           All
property insurance policies shall be taken out with insurers rated A+XV (or if
such ratings are not in effect, the equivalent thereof) by Best Rating Service,
or any successor thereto (or if there be none, an organization having a national
reputation) who are licensed to do business in Pennsylvania.  A policy
or certificate evidencing such insurance together with a paid bill shall be
delivered to Landlord on the earlier of (a) the Commencement Date hereof, or (b)
Tenant’s or Tenant’s agents’ or employees’ entry onto the Premises pursuant to
Section 6 of the Work Letter.  Such insurance policy or certificate
will provide an undertaking by the insurers to notify Landlord and the
Mortgagees of Landlord in writing not less than thirty (30) days prior to any
material change, reduction in coverage, cancellation, or other termination
thereof.  Should a certificate of insurance initially be provided a
policy shall be furnished by Tenant within thirty (30) days of the Commencement
Date.  The aforesaid insurance shall be written with a deductible no
greater than Twenty-Five Thousand Dollars ($25,000).  Tenant’s
insurance shall be primary and non-contributory to any insurance carried by
Landlord or Landlord’s property manager or lenders.

    
      
         

      

      
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    (iii)           Tenant
agrees that it will not keep or use or offer for sale in or upon the Premises or
within the Property any article which may be prohibited by any insurance policy
of Tenant or Landlord in force from time to time covering the Property or
Premises.  In the event Tenant’s occupancy or conduct of business in
or on the Premises or Property, whether or not Landlord has consented to the
same, results in any increase in premiums for insurance carried from time to
time by Landlord with respect to the Building, the Property or the Premises (or
by the Association created in accordance with the Declaration with respect to
the Property), Tenant shall pay such increase in premiums as Additional Rent
within ten (10) days after being billed therefor by Landlord.  In
determining whether increased premiums are a result of Tenant’s use and
occupancy a schedule issued by the organization computing the insurance rate on
the Property or Premises showing the components of such rate shall be conclusive
evidence of the items and charges making up such
rate.  Notwithstanding anything to the contrary contained herein,
Landlord hereby confirms that, to Landlord’s knowledge, use of the Premises for
the Permitted Use should not result in any such increase in premium, subject
only to any ancillary uses of the Premises permitted by this Lease and which are
atypical for office tenants, if any.  Tenant shall promptly comply
with all reasonable requirements of Tenant’s and Landlord’s insurer relating to
the Building, the Property or Premises.

     

    (iv)           If
any insurance policy carried Tenant as required by this Section 10 shall be
cancelled or cancellation shall be threatened or the coverage thereunder reduced
or threatened to be reduced in any way by reason of the use or occupation of the
Premises or Building or any part thereof by Tenant or any assignee or subtenant
of Tenant or anyone permitted by Tenant to be upon the Premises, and if Tenant
fails to obtain alternative insurance coverage as required by this
Section 10 or fails to remedy the conditions giving rise to such
cancellation or threatened cancellation or reduction in coverage on or before
the earlier of (i) five (5) business days after notice thereof from Landlord, or
(ii) prior to such cancellation or reduction becoming effective, Tenant shall be
in default and an event of default shall occur under this Lease and Landlord
shall have all of the remedies available to Landlord pursuant to this
Lease.  If any insurance policy carried by Landlord as required by
this Section 10 shall be cancelled or cancellation shall be threatened or the
coverage thereunder threatened or threatened to be reduced in any way by reason
of the use or occupation of the Premises or Building or any part thereof by
Tenant or any assignee or subtenant of Tenant or anyone permitted by Tenant to
be upon the Premises, Landlord shall provide Tenant with written notice thereof
promptly upon Landlord’s receipt of knowledge of such cancellation or threatened
cancellation.  If Tenant fails to remedy the conditions giving rise to
such cancellation or threatened cancellation or reduction in coverage on or
before the earlier of (i) five (5) business days after notice thereof from
Landlord or (ii) prior to such cancellation or reduction becoming effective,
Tenant shall be in default and an event of default shall occur under this Lease
and Landlord shall have all of the remedies available to Landlord pursuant to
this Lease.

     

    b) 
Landlord’s
Insurance.  Landlord covenants and agrees that throughout the
Term it will insure the Property and the Building (excluding any property with
respect to which Tenant is obligated to insure pursuant to Subsection
10(a)(i)(1) above, but including the Premises Work (as defined in Exhibit
C to this Lease) against damage by perils covered by the all-risk
“special form” property insurance and commercial general liability insurance in
such reasonable amounts with such reasonable deductibles as required by any
Mortgagee or ground lessor, or, if none, as would be carried by a prudent owner
of a similar building in the area, provided that such property insurance must be
for the full replacement cost of the Building and such commercial general
liability insurance shall have a single limit of not less than Five Million
Dollars ($5,000,000).  Landlord may, but shall not be obligated to,
take out and carry any other forms of insurance as it or the Mortgagee or ground
lessor (if any) of Landlord may reasonably require or reasonably determine
available.  All insurance carried by Landlord on the Building in
accordance with this Section 10(b) of the Lease or otherwise allocated to the
Building pursuant to the Declaration or any contribution by Tenant to the cost
of insurance premiums by Tenant as provided in Section 10(a)(iii) herein shall
be included as an Operating Expenses pursuant to Section
8.  Notwithstanding its inclusion as an Operating Expense or any
contribution by Tenant to the cost of insurance premiums by Tenant as provided
in Section 10(a)(iii) herein, Tenant acknowledges that it has no right to
receive any proceeds from any such insurance policies carried by Landlord
although Landlord shall use such proceeds in the repair and reconstruction of
the Building, the Property and the Premises.  Tenant further
acknowledges that the exculpatory provisions of this Lease and the provisions of
this Section 10 as to Tenant’s insurance are designed to insure adequate
coverage as to Tenant’s property and business without regard to fault and avoid
Landlord obtaining similar coverage for such loss for its negligence or that of
its agents, servants or employees which would result in double coverage for the
same perils includable as part of Operating Expenses which are payable in part
by Tenant.  Landlord will not carry insurance of any kind on Tenant’s
furniture or furnishings, or on any trade fixtures, equipment, appurtenances or
improvements of Tenant under this Lease (other than the Premises Work (as
defined in Exhibit
C to this Lease)), and Landlord shall not be obligated to repair any
damage thereto or replace the same.

    
      
         

      

      
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    c) 
Waiver of
Subrogation.  Any policy or policies of fire, extended coverage
or similar casualty insurance, which either party obtains in connection with the
Premises, Building or Property as required by this Lease shall include a clause
or endorsement denying the insurer any rights of subrogation against the other
party (i.e. Landlord or Tenant) for all perils covered by such
policy.  Should such waiver not be available then the policy for which
the waiver is not available must name the other party as an additional named
insured affording it the same coverage as that provided the party obtaining such
coverage. Any provision of this Lease to the contrary notwithstanding, Landlord
and Tenant hereby release the other from any and all liability or responsibility
to the other or anyone claiming through or under them by way of subrogation or
otherwise (a) from any and all liability for any loss or damage to the property
of the releasing party, (b) for any loss or damage that may result, directly or
indirectly, from the loss or damage to such property (including rental value and
business interruption), and (c) from legal liability for any loss or damage to
property (no matter who the owner of the property may be), all to the extent
that the releasing party’s loss or damage is insured or, if not insured, was
required to be insured by this Lease, even if such loss or damage or legal
liability shall be caused by or result from the fault or negligence of the other
party or anyone for whom such party may be responsible, and even if the
releasing party is self insured in whole or in part or the amount of the
releasing party’s insurance is inadequate to cover the loss or damage or legal
liability.  It is the intention of the parties that Landlord and
Tenant shall look solely to their respective insurance carriers for recovery
against any such property loss or damage or legal liability, without such
insurance carriers having any rights of subrogation against the other
party.  For the purpose of the foregoing waiver, the amount of any
deductible applicable to any loss or damage shall be deemed covered by and
recoverable by the insured under the insurance policy to which such deductible
relates.

     

    11. 
Repairs and Maintenance.

     

    a) 
Subject to Landlord’s obligations in Section 11(b) hereof, Tenant shall,
throughout the Term, and at Tenant’s sole cost and expense, use commercially
reasonable efforts to keep and maintain the Premises in a neat and orderly
condition; and, upon expiration of the Term or earlier termination of this
Lease, Tenant shall leave the Premises in good order and condition, ordinary
wear and tear, damage by fire or other insured casualty excepted, and for that
purpose and except as stated in this sentence, Tenant will make all necessary
repairs and replacements to the Premises to deliver it in such
condition.  Tenant shall not use or permit the use of any portion of
the Common Facilities in violation of Exhibit
F to this Lease.

    
      
         

      

      
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    b) 
Landlord shall, throughout the Term, maintain the structural elements, Building
operating systems, exterior and Common Facilities lobby interior windows of the
Building and other improvements located on the Property in good condition and
repair; provided, however, that Landlord shall have no responsibility to make
any repairs unless and until Landlord receives written notice of the need for
such repair or is, or should reasonably have been, otherwise aware of the need
for such repair and provided further, that Landlord shall not be obligated to
repair any tenant improvements which are not part of the Premises Work (as
defined in Exhibit
C to this Lease).  Landlord shall use commercially reasonable
efforts to keep and maintain all Common Facilities of the Property and any
sidewalks, parking areas, curbs and access ways adjoining the Property in a
clean and orderly condition, free of accumulation of dirt and rubbish and to
keep and maintain all landscaped areas within the Property in a neat and orderly
condition.

     

    c) 
Notwithstanding the foregoing, but subject to Section 10(c) of this Lease,
repairs and replacements to the Premises and the Property proximately arising
out of or proximately caused by Tenant’s use, manner of use or occupancy of the
Premises, by Tenant’s installation of alterations, additions, improvements,
trade fixtures or equipment in or upon the Premises or by any act or omission of
Tenant or any employee, agent, contractor or invitee of Tenant shall be made at
Tenant’s cost and expense to the extent proximately caused by Tenant or any
employee, agent, contractor or invitee of Tenant and Tenant shall pay Landlord
the cost of any such repair or replacement, as Additional Rent, upon
demand.

     

    12.
Utilities and Services.

     

    a) 
Subject to the terms and conditions of this Lease, Landlord shall furnish the
Premises with electricity, heating and air conditioning for the normal use and
occupancy of the Premises for the Permitted Use between 7:30 a.m. and 10:00 p.m.
Monday through Friday (Building Holidays excepted), 9:00 a.m. to 5:00 p.m. on
Saturdays and Building Holidays (collectively, “Business Hours”), of each week
during the Term to maintain a reasonably comfortable temperature in the Premises
under ordinary office operations, within guidelines which may be established
from time to time by federal, state or local regulatory agencies, in accordance
with the following design criteria: the system shall maintain an average inside
temperature of 72oF +/- 2 degrees with fifty percent (50%) relative humidity
during summer outdoor temperatures of 93oF DB and 78°F WB, and an average inside
temperature of 72oF +/- 2o during winter outdoor temperatures of 10oF DB, and in
accordance with an occupancy of one person per 250 square feet of rentable
area.  Tenant agrees to pay to Landlord monthly as Additional Rent (i)
actual electric usage for the Premises based on the submeter reading, and (ii)
all charges for heat and air conditioning or other utilities used by Tenant at
the Premises.

    
      
         

      

      
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    To the
extent not being operated by other tenants on the same floor of the Building as
Tenant, Tenant shall pay Landlord a fee on an hourly basis (which fee is fifty
dollars ($50.00) per hour as of the date hereof, but is subject to change from
time to time upon written notice by Landlord).  Tenant shall contact
Landlord prior to 4:00 p.m. Monday through Friday to inform Landlord of Tenant’s
non-Business Hours HVAC needs, and Landlord will program the HVAC units to meet
such requests.  For purposes of the foregoing sentence only, Tenant
shall be permitted to contact Landlord by phone or e-mail in addition to the
means of notice listed in Section 34 hereof at such telephone numbers and
e-mails addresses given by Landlord to Tenant from time to time expressly for
such purpose.  Landlord shall use good faith, commercially reasonable
efforts to accommodate Tenant’s requests for HVAC service during non-Business
Hours that may be received after 4:00 p.m.

     

    Tenant’s
consumption of electricity within the Premises shall be separately submetered at
Landlord’s expense, and Tenant shall pay for such consumption based upon such
metered usage with no mark-up by Landlord (except any fee charged by a meter
reading service), provided that all utility costs related to heating and
air-conditioning within the Premises shall be payable by Tenant on a pro-rata
basis calculated by taking such utility costs and subtracting payments made or
owed from Tenant or other tenants served by the utility submeters applicable to
the heating or air conditioning units serving the Premises for use of heating
and air conditioning after Business Hours and multiplying them by a fraction,
the numerator of which shall be the rentable square footage of the Premises and
the denominator of which shall be the sum of the rentable square footage of the
Premises and the rentable square footage of any other areas of the Building
served by the utility submeters applicable to the heating and air-conditioning
units serving the Premises.  In addition, Tenant agrees to pay as
Additional Rent its pro rata share of all charges for heat and air conditioning,
electricity, and other utilities used (i) generally at the Property (i.e. not
within tenant occupied premises of the Building), and (ii) by the Tenant at the
Premises during non-Business Hours. Tenant shall pay all bills for such utility
usage within thirty (30) days after receipt thereof, and any non-payment or late
payment of such utility bills shall be deemed a default under the terms of this
Lease.  All charges for installation and repairs of any meters
servicing the Premises shall be payable by Landlord.  Tenant’s use of
electric energy in the Premises shall not at any time exceed that contemplated
by the Space Plan or Premises Plan (each as defined in Exhibit C of this
Lease).  If Tenant shall require electricity or install electrical
equipment in excess of the electricity requirements contemplated by the Space
Plan or Premises Plan (each as defined in Exhibit
C of this Lease), Tenant will obtain prior written approval from Landlord
and will pay, as Additional Rent, for the resulting additional direct expense to
Landlord, including the expense resulting from the installation of any equipment
and meters, within thirty (30) days after receipt of an invoice from
Landlord.

     

    b) 
Landlord shall promptly replace light bulbs, tubes and ballasts for building
standard lighting fixtures when required in the Premises after receipt of a
request therefor from Tenant.  The cost of replacement light bulbs,
tubes, lamps, and ballasts, plus the costs incurred by Landlord for such
replacement, shall be paid by Tenant as Additional Rent in accordance with
Landlord’s then-current schedule of costs and assessments
therefor.

    
      
         

      

      
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    c) 
Within the Common Facilities of the Building, Landlord shall operate the
Building in accordance with standards applicable to Class “A” prestige office
buildings and subject to the terms and conditions of this Lease, shall furnish
the following services to Tenant:  (i) hot and cold water, (ii)
lavatory supplies, (iii) automatically operated elevator service, available 24
hours per day/7 days per week, subject to reasonable maintenance and down-time
related thereto, (iv) normal and customary cleaning services (on a Monday
through Friday basis except for Building Holidays) after 6:00 pm, (v)
landscaping and grounds maintenance and trash removal, (vi) parking lot
maintenance and parking light lighting, (vii) Common Facilities maintenance,
(viii) snow and ice removal, (ix) fully-functioning Americans with Disabilities
Act-compliant men’s and women’s restrooms (on either the first floor of the
office building or such other floor as may be designated by Landlord), subject
to reasonable maintenance and down-time related thereto (x) extermination and
pest control, (xi) cleaning of exterior windows at intervals to be determined by
Landlord in its reasonable discretion, but no less than one (1) time per
calendar year, (xiii) security card access to the Building and (xiv)
electricity, lighting, air-conditioning, and heating.  Landlord shall
provide janitorial service to the Premises in accordance with the Janitorial
Specifications attached hereto as Exhibit
E.  Except as set forth in Section 12(a) and 12(b) hereof, the
cost of the services provided by Landlord pursuant to this Section 12(c) shall
be included as part of Operating Expenses.  Any additional services
requested by Tenant which are not provided to all the tenants of the Building
shall be paid by Tenant in accordance with invoices therefor as Additional
Rent.

     

    d) 
Except as provided in Section 12(e) of this Lease, Landlord shall not be liable
for any damages to Tenant resulting from the quality, quantity, failure,
unavailability or disruption of any services beyond the reasonable control of
Landlord and the same shall not constitute a termination of this Lease or an
actual or constructive eviction or entitle Tenant to an abatement of
rent.  Landlord shall not be responsible for providing any services
not specifically provided for in this Lease.

     

    e) 
In the event an interruption in HVAC or utilities that renders the Premises or a
significant portion thereof inaccessible or unusable for the normal conduct of
Tenant’s business, which is not covered pursuant to Section 18 (Damage by Fire
or Other Casualty) or Section 21 (Condemnation) hereof, that continues for a
period in excess of two (2) consecutive business days (i.e., Monday through
Saturday) following written notice of such interruption to Landlord (the
“Interruption Notice”), and if Tenant does not in fact occupy the Premises or a
significant portion thereof due to such interruption, and provided such failure
is not materially caused by Tenant, Tenant's contractors or any of their
respective agents or employees (such interruption in HVAC or utilities that
meets the foregoing criteria, a “Covered Interruption”), then Tenant may elect
in such Interruption Notice to have the Rent under this Lease equitably abated
following the second (2nd) business day (i.e., Monday through Saturday)
following Tenant’s delivery of the Interruption Notice and continuing until such
HVAC or utilities are again available and the Premises or the applicable portion
thereof is again accessible and tenantable for the normal conduct of Tenant’s
business, which equitable abatement shall be Tenant’s sole and exclusive remedy
with respect to such Covered Interruption.  In the event that Tenant
does not elect in an Interruption Notice delivered as a result of a Covered
Interruption to have the Rent under this Lease equitably abated, then Tenant
shall waive the right to have the Rent under this Lease equitably abated but
shall retain all other remedies available to Tenant pursuant to this Lease with
respect to any Covered Interruption.

    
      
         

      

      
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    13.
Regulation Compliance.  Landlord’s
obtainment of a certificate of occupancy for the Premises shall demonstrate, and
Landlord covenants, represents and warrants as of the date of obtainment of a
certificate of occupancy for the Premises, that the Property, Building and
Premises comply with all applicable laws and the requirements of the Declaration
as of the Commencement Date.  Landlord shall comply with all current
and future laws, ordinances, notices, orders, rules, regulations and
requirements of all federal, state and municipal government or any department,
commission, board of officer thereof, or of the National Board of Fire
Underwriters or any other body exercising similar functions, relating to the
Common Facilities, Building systems and the structural components of the
Building.  Tenant shall comply with all current and future laws,
ordinances, notices, order, rules regulations and requirements of all federal,
state and municipal government or any department, commission, board of officer
thereof, or of the National Board of Fire Underwriters or any other body
exercising similar functions, applicable to the use, condition, configuration or
occupancy of the Premises (excluding Landlord’s obligations as set forth above
and subject to Landlord’s compliance with the Zoning
Representation).  If the Tenant has knowledge of any such accident,
breakage, defect or failure, the Tenant shall give Landlord prompt written
notice of any material breakage, defect or failure in any of the systems or
equipment servicing the Premises or any portion of the Premises.

     

    14.
Signs.  Landlord
shall provide Tenant, at Landlord’s sole cost and expense, standard signage on
the Building lobby directory.  Landlord shall also provide, at
Landlord’s sole cost and expense, standard signage near Tenant’s main suite
entry door (which shall include a separate designation regarding Tenant’s
shipping and receiving entrance).  Except for signs which are located
wholly within the interior of the Premises and which are not visible from the
exterior of the Premises, Tenant shall not place, erect, maintain or paint any
signs upon the Premises or the Property unless the design of such signs are
approved by Landlord in writing and comply with all applicable governmental
rules, regulating ordinances or other statutes, the Declaration, and other
restrictions of record affecting the Premises.  Other than signage on
the Building lobby directory, signage near Tenant’s main suite entry door and
monument signage all as described herein, Tenant shall be solely responsible for
all costs and expenses associated with the erection and maintenance of any signs
upon the Premises and shall be obligated to obtain and provide to Landlord any
and all necessary permits prior to the placement or erection of such
signs.

     

    Notwithstanding
the foregoing, subject to applicable laws, Landlord shall install on or prior to
the Commencement Date, at Landlord’s sole cost and expense, a panel in the
highest or second highest position available to a tenant of the Building the
monument sign to be erected on Horizon Boulevard in accordance with Exhibit
M attached hereto subject to Landlord’s receipt of all required
governmental approvals related thereto, which Landlord shall pursue using
commercially reasonably efforts, and Landlord shall be responsible for the costs
of maintenance of such monument sign.  Except for signage on the
Building lobby directory, signage near Tenant’s main suite entry door and
monument signage, Tenant shall remove all signs installed by Tenant at the
expiration or earlier termination of this Lease and repair any damage caused by
such removal.

     

    15.
Alterations, Additions and Fixtures.

     

    a) 
Tenant shall have the right to install in the Premises any trade fixtures and
shall remove same upon expiration or termination of this Lease; provided,
however, that no such installation and no removal thereof shall be permitted
which materially and adversely affects any structural component or operating
system of the Building or Premises and that Tenant shall repair and restore,
ordinary wear and tear and damage by fire and other insured casualty excepted,
any and all damage or injury to the Premises or the Property caused by
installation or removal at Tenant’s sole cost and expense.

    
      
         

      

      
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    b) 
Tenant shall not make or permit to be made any alterations, improvements or
additions to the Premises or Property without on each occasion first presenting
plans and specifications to Landlord and obtaining Landlord’s prior written
consent, which shall not be unreasonably withheld or delayed, but may be
conditioned upon compliance with reasonable requirements of Landlord as provided
in this Section 15(b).  Notwithstanding the foregoing, Tenant may make
nonstructural cosmetic alterations to the Premises (including replacing paint,
carpet and wallcoverings) that do not require a permit under the applicable
legal requirements and that do not cost in excess of One Hundred Thousand
Dollars ($100,000) at any one time within any twelve (12)-month period
(“Cosmetic Alterations”) without Landlord’s consent, but upon written notice to
Landlord for any Cosmetic Alterations in excess of Twenty Five Thousand Dollars
($25,000).  If Landlord consents in writing to any proposed
alterations, improvements or additions or if Tenant makes any Cosmetic
Alterations, then Tenant at Tenant’s sole cost and expense, may make the
proposed alterations, improvements and additions or Cosmetic Alterations
provided that: (i) Tenant supplies any necessary permits; (ii) such alterations
and improvements do not, in Landlord’s judgment, materially impair the
structural strength of the Building or any other improvements or materially
reduce the value of the Property and are at least equal in quality to building
standard improvements; (iii) Tenant takes or causes to be taken all steps that
are otherwise required by Section 16 of this Lease; (iv) Tenant uses a
contractor reasonably approved by Landlord; (v) the occupants of the Building
and of any adjoining real estate owned by Landlord are not unreasonably annoyed
or disturbed by such work; (vi) the alterations, improvements or additions shall
be installed in accordance with the approved plans and specifications (other
than Cosmetic Alterations, for which no plans or specifications shall be
required to be approved by Landlord) and completed according to a construction
schedule reasonably approved by Landlord; and (vii) Tenant’s contractors provide
insurance of the types and coverage amounts reasonably required by
Landlord.  Any and all alterations, improvements and additions to the
Premises which are constructed, installed or otherwise made by Tenant shall be
the property of Tenant until the expiration or sooner termination of this Lease;
at that time all such alterations, improvements and additions, to the extent
such alterations, improvements and additions are fixtures of the Premises, shall
remain on the Premises and become the property of Landlord without payment by
Landlord unless, upon the termination of this Lease, Landlord instructs Tenant
in writing to remove the same in which event Tenant will remove such
alterations, improvements and additions, and repair and restore any damage to
the Property or the Premises caused by the installation or removal at its sole
cost and expense, ordinary wear and tear and damage by fire and other insured
casualty excepted. Notwithstanding anything to the contrary contained in this
Lease, Landlord may withhold its approval to any proposed alterations, additions
or improvements to the Premises in its absolute and sole discretion with respect
to any such alteration, addition or improvement which Landlord determines
involves any modification to the Building’s exterior or material modification of
its structural, electrical, mechanical or plumbing systems, or any components
thereof.

    
      
         

      

      
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    c) 
Notwithstanding anything to the contrary in this Lease, Tenant, at Tenant’s sole
cost and expense (including, without limitation, payment of all utilities in
connection therewith), shall also have the right without charge to install and
use a total of one or two satellite dishes, antennae and/or similar
communications equipment, necessary or useful for the operation of Tenant’s
business, together with associated equipment, shelters, cables, wires, utility
connections and other communications related equipment (collectively, the
“Equipment”), limited to a location on the roof of the Building designated by
Landlord, provided that such Equipment will not interfere with any other
pre-existing communication devices or equipment utilized by other tenants of the
Building and subject to Landlord’s review and approval of Tenant’s plans and
specifications therefore, not to be unreasonably withheld, conditioned or
destroyed.  Such installation shall be performed by a contractor
reasonably acceptable to Landlord and in a manner which strictly complies with
the terms of any applicable roof warranty for the Building, a copy of which roof
warranty shall be supplied to Tenant upon written request.  Landlord
shall provide Tenant reasonable access to the Building to run the necessary
cable and piping related to the Equipment.  Tenant shall be solely
responsible for any and all costs associated with the installation, operation,
insurance, maintenance and removal of the Equipment and any associated roof
repair (including, but not limited to roof repairs connected with the
installation, operation, maintenance and removal of the Equipment from the
roof), ordinary wear and tear and damage by fire and other insured casualty
excepted, which repair shall be performed by Landlord’s contractor at Tenant’s
sole cost and expense. Notwithstanding the foregoing, such repairs shall be
performed at commercially reasonable rates and Landlord’s contractor shall be
under the direction and control of Tenant with respect to such
repair.  At Landlord’s written request, Tenant, at Tenant’s sole cost
and expense, shall screen the Equipment, with screening reasonably acceptable to
Landlord, such that the Equipment is shielded from view on the Property and
surrounding areas.

     

    16.
Mechanic’s Liens.  Tenant
shall promptly pay any contractors and materialmen who supply labor,
work or materials to Tenant at the Premises or the Property so as to minimize
the possibility of a lien attaching to the Premises or the
Property.  Tenant shall take all commercially reasonable steps
permitted by law in order to avoid the imposition of any mechanic’s, laborer’s
or materialman’s lien upon the Premises or the Property relating to labor, work
or materials supplied to Tenant at the Premises or the
Property.  Should any such lien or notice of lien be filed for work
performed for Tenant other than by Landlord, Tenant shall cause such lien or
notice of lien to be discharged of record by payment, deposit, bond or otherwise
within fifteen (15) days after Tenant’s receipt of notice thereof.  If
Tenant shall fail to cause such lien or claim to be discharged and removed from
record within such fifteen (15) day period, then, without obligation to
investigate the validity thereof and in addition to any other right or remedy
Landlord may have, Landlord may, but shall not be obligated to, contest the lien
or claim or discharge it by deposit or bond.  Any amounts so paid by
Landlord and all costs and expenses including, without limitation, attorneys’
fees incurred by Landlord in connection therewith, together with Interest from
the respective dates of Landlord’s making such payment or incurring such cost or
expense, shall constitute Additional Rent payable under this Lease and Tenant
shall pay same within thirty (30) days of receipt of an invoice
therefor.  Nothing in this Lease is intended to authorize Tenant to do
or cause any work or labor to be done or any materials to be supplied for the
account of Landlord, all of the same to be solely for Tenant’s account and at
Tenant’s risk and expense.  Further, notwithstanding anything to the
contrary contained in this Lease, nothing contained in or contemplated by this
Lease shall be deemed or construed in any way to constitute the consent or
request by Landlord for the performance of any work or services or the
furnishing of any materials for which any lien could be filed against the
Premises, the Building or the Property or any part of any thereof, nor as giving
Tenant any right, power or authority to contract or permit the performance of
any work or services or the furnishing of any materials within the meaning of 49
P.S. Sections 1101-1902, as amended, or under the Contractor and Subcontractor
Payment Act or any amendment thereof or otherwise for which any lien could be
filed against the Premises, the Building, the Property or any part of any
thereof.  Throughout this Lease the term “mechanic’s lien” is used to
include any lien, encumbrance or charge levied or imposed upon the Premises, the
Building or the Property or any interest therein or income therefrom (i) on
account of any mechanic’s, laborer’s or materialman’s lien or (ii) arising out
of any debt or liability to or any claim or demand of any contractor, mechanic,
supplier, materialman or laborer and shall include without limitation any
mechanic’s notice of intention given to Landlord or Tenant, or any statutory
stop order given to Landlord or Tenant to preserve a subcontractor’s rights in
connection with a work stoppage as a result of non-payment from Tenant or any
injunctive or equitable action brought by any person entitled to a mechanic’s
lien.

    
      
      

      
        
          
          

        

        
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    17.
Landlord’s Right of Entry.

     

    a) 
Tenant shall permit Landlord and the authorized representatives of Landlord and
of any Mortgagee to enter the Premises at all reasonable times, with reasonable
prior notice of no less than two (2) business days to Tenant (except in the case
of an emergency in which case notice shall be given as soon as practicable), for
the purpose of (i) reasonable inspection of the Premises or (ii) making any
necessary repairs to the Premises or to the Building.  During the
progress of any necessary repairs to the Premises or the Building, Landlord will
attempt not to inconvenience Tenant, but shall not be liable for non-material
inconvenience, annoyance, disturbance, loss of business or other damage to
Tenant by reason of making any necessary repairs to the Premises or to the
Building, and the obligations of Tenant under this Lease shall not be thereby
affected in any manner whatsoever.  In the event Landlord is required
to make repairs to the Premises or to the Building not materially caused by
Tenant or its agents, employees or contractors and such repairs make all or a
significant portion of the Premises inaccessible or unusable for the normal
conduct of Tenant’s business, and Tenant does not in fact occupy the Premises or
a significant portion thereof due to such repairs and provides Landlord with
written notice thereof on or prior to the date Tenant so stops occupying or
reduces its occupancy of the Premises, Rent due hereunder shall be equitably
abated so long as such repairs continue to make the Premises inaccessible or
unusable for the normal conduct of Tenant’s business.

     

    b) 
Landlord shall have the right at all reasonable times, with reasonable prior
notice of no less than two (2) business days to Tenant, to enter and to exhibit
the Premises for the purpose of inspection or showing the Premises in connection
with a sale or mortgage and, during the last twelve (12) months of the Term, to
enter upon and to exhibit the Premises to any prospective tenant.

     

    c) 
If the Premises are vacated or abandoned by Tenant, Landlord shall not be
permitted to prepare the Premises for re-occupancy unless and until Tenant is in
default under this Lease beyond any applicable cure periods.

     

    
      
        
        

      

      
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    18.
Damage by Fire or Other Casualty.

    a) 
If the Premises or Building is damaged or destroyed by fire or other casualty,
Tenant or Landlord, respectively, shall promptly notify the other party hereto,
whereupon Landlord shall repair, rebuild or replace such damage and restore the
Premises to substantially the same condition as the Premises were in immediately
prior to such damage or destruction; provided, however, that Landlord shall only
be obligated to restore such damage or destruction to the extent of Landlord’s
actual receipt of the proceeds of the insurance maintained by Landlord in
accordance with Section 10(b) of this Lease.  Landlord shall provide
Tenant with written notice (the “Repair Notice”) of how long the repair and
restoration of the Premises is anticipated to take within forty five (45) days
following the date of such fire or other casualty.  Notwithstanding
the foregoing, if the Premises or the Building is destroyed or damaged to the
extent that in Landlord’s sole judgment the Premises and the Building cannot be
repaired or restored within one hundred eighty (180) days after the date of such
casualty, Landlord may terminate this Lease, effective as of the date of such
damage or destruction, in the Repair Notice, or such Landlord’s termination
right shall be deemed waived. Tenant shall have the right to terminate this
Lease, effective as of the date of such damage or destruction, if (a) (i) any
portion of the Premises is covered by a casualty or (ii) any material portion
of the Property is covered by a casualty which materially restricts Tenants
ability to use the Building or Premises and (b) the Premises and the
Building cannot be repaired or restored within one hundred eighty (180) days
after the date of such casualty as set forth in Landlord’s Repair Notice,
provided that Tenant must exercise such termination right by delivery to
Landlord of a termination notice within the later of (i) seventy-five (75) days
following the date of such fire or other casualty or (ii) thirty (30) days after
Landlord’s delivery to Tenant of the Repair Notice, or such Tenant’s termination
right shall be deemed waived.  Tenant shall have the right to
terminate this Lease, effective as of the date of such damage or destruction, if
the Premises and the Building are not repaired or restored by the anticipated
date of completion of repair or restoration as set forth in Landlord’s Repair
Notice, plus an additional thirty (30) days.

     

    b) 
The repair, rebuilding or replacement work shall be commenced promptly and
completed with due diligence, taking into account the time required by Landlord
to effect a settlement with, and procure insurance proceeds from, the insurer,
and for delays beyond Landlord’s reasonable control.

     

    c) 
The net amount of any insurance proceeds actually recovered by reason of the
damage or destruction of the Building (meaning the gross insurance proceeds
actually received by Landlord excluding proceeds received by Landlord pursuant
to a rental coverage endorsement and the cost of adjusting the insurance claim
and collecting the insurance proceeds) shall be applied towards the cost of
restoration.  Notwithstanding anything to the contrary in this Lease,
if in Landlord’s reasonable opinion the net insurance proceeds will not be
adequate to complete such restoration, Landlord shall have the right to
terminate this Lease, effective as of the date of such damage or destruction,
and all the unaccrued obligations of the parties hereto by sending a written
notice of such termination to Tenant.

     

    d) 
Landlord’s obligation or election to restore the Premises under this Section 18
or to terminate this Lease shall be subject to the terms of any present or
future Mortgage affecting the Premises and to the Mortgagee’s consent if
required in the Mortgage and shall not, in any event, include the repair,
restoration or replacement of the trade fixtures, improvements, alterations,
furniture or any other property owned, installed, made by, or in the possession
of Tenant other than the work done by Landlord in connection with Exhibit
C.

    
      
         

      

      
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    e) 
Notwithstanding anything to the contrary in this Lease, if Tenant is
dispossessed in whole or in part of the Premises due to fire or other casualty,
Rent shall be equitably abated until Landlord has completed its restoration
obligations.

     

    19.
Non-Abatement of Rent.  Except as
otherwise provided in this Lease, there shall be no abatement or reduction of
the Fixed Basic Rent, Additional Rent or other sums payable under this Lease for
any cause whatsoever and this Lease shall not terminate, nor shall Tenant be
entitled to surrender the Premises, in the event of fire, casualty or
condemnation or any default by Landlord under this Lease.

     

    20.
Indemnification.

     

    a) 
Unless such loss, costs or damage were caused by the negligence or willful
misconduct of Landlord or its employees, agents or contractors, Tenant hereby
agrees to indemnify, defend and hold Landlord and its employees, agents and
contractors harmless from any loss, costs and damages (including reasonable
attorney’s fees and costs) suffered by Landlord and its agents, employees or
contractors, as a result of (i) any claim by a third party, its agents,
employees or contractors to the extent arising from Tenant’s use or occupancy of
the Premises; or (ii) any losses caused by the negligence of Tenant or any of
Tenant’s employees, agents or contractors.  Tenant shall have the
right to designate counsel acceptable to Landlord, such approval not to be
unreasonably withheld, to assume the defense of any such third party claim on
behalf of itself and Landlord.  Landlord shall not have the right to
settle any such third party claim without the consent of Tenant.  This
indemnity shall survive the expiration of the Term or earlier termination of
this Lease.

     

    b) 
Unless such loss, costs or damage were caused by the negligence or willful
misconduct of Tenant or its employees, agents or contractors, Landlord hereby
agrees to indemnify, defend and hold Tenant and its employees, agents and
contractors harmless from any loss, costs and damages (including reasonable
attorney’s fees and costs) suffered by Tenant and its agents, employees or
contractors, as a result of (i) any claim by a third party, its agents,
employees or contractors to the extent arising from Landlord’s use, occupancy or
management of the Building or the Property; or (ii) any losses caused by the
negligence of Landlord or any of Landlord’s employees, agents or
contractors.  Landlord shall have the right to designate counsel
acceptable to Tenant, such approval not to be unreasonably withheld, to assume
the defense of any such third party claim on behalf of itself and
Tenant.  Tenant shall not have the right to settle any such third
party claim without the consent of Landlord.  This indemnity shall
survive the expiration of the Term or earlier termination of this
Lease.

     

    21.
Condemnation.  In the
event of a condemnation in whole or in part of the Premises, Building, Property
or Common Facilities, Landlord shall provide Tenant with written notice thereof
(the “Condemnation Notice”) within ten (10) days following Landlord’s receipt of
written notice thereof from the condemning authority.

    
      
         

      

      
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    a) 
Termination.  If (i)
any portion of the Premises is covered by a condemnation and, in Tenant’s sole
opinion, the remaining part is insufficient for the reasonable operation therein
of Tenant’s business; or (ii) subject to the provisions of Subsection 21(b)(i)
hereof, any of the Property is covered by a condemnation and, in Landlord’s sole
opinion, it would be impractical or the condemnation proceeds are insufficient
to restore the remainder of the Property; then, in the event of such
condemnation could have a material adverse effect on Tenant, Landlord or Tenant,
as applicable, shall have the right to terminate this Lease by providing the
other party with notice thereof, in the case where Landlord is providing notice
to Tenant, within ten (10) days following transmission of the Condemnation
Notice (provided that Landlord, at its option, may provide such notice within
the Condemnation Notice), or, in the case where Tenant is providing notice to
Landlord, within thirty (30) days following receipt of the Condemnation Notice
by Tenant, and in the event of any such termination, this Lease shall terminate
effective as of the date upon which possession is taken by the condemnor and all
obligations under this Lease shall cease (except for those specifically set
forth in the Lease as surviving the expiration of the Term or earlier
termination of this Lease) effective as of the date upon which possession is
taken by the condemnor.  Upon such termination the Fixed Basic Rent
and all Additional Rent herein reserved shall be apportioned and paid in full by
Tenant to Landlord to that date and all such rent prepaid for periods beyond
that date shall forthwith be repaid by Landlord to Tenant.

     

    b) 
Partial
Condemnation.

     

    (i)           If
there is a partial condemnation and this Lease has not been terminated pursuant
to subsection (a) hereof, Landlord shall restore the Building and the
improvements which are part of the Premises to a condition and size as nearly
comparable as reasonably possible to the condition and size thereof immediately
prior to the date upon which possession shall have been taken by the condemnor;
provided, however, that Landlord shall only be obligated to restore such damage
from condemnation to the extent possible with the condemnation damage award plus
any insurance proceeds related to the condemnation plus, if necessary, a
contribution by Landlord of up to Two Hundred and Fifty Thousand Dollars
($250,000) which shall be allocated in its entirety to the costs and expenses to
restore the Premises (collectively, the “Condemnation
Proceeds”).  Subject to Section 21(c) of this Lease, if the
Condemnation Proceeds are more than adequate to cover the cost of restoration
and Landlord’s expenses in collecting the condemnation proceeds, any excess
proceeds shall be retained by Landlord or applied to repayment of any Mortgage
secured by the Premises.

     

    (ii)           If
there is a partial condemnation and this Lease has not been terminated by the
date upon which the condemnor obtains possession, the obligations of Landlord
and Tenant under this Lease shall be unaffected by such condemnation except that
there shall be an equitable abatement for the balance of the Term of the Fixed
Basic Rent according to the value of the Premises before and after the date upon
which the condemnor takes possession.  In the event that the parties
are unable to agree upon the amount of such abatement, either party may submit
the issue to arbitration.

     

    c) 
Award.  Landlord
shall receive the entire award (which shall include sales proceeds) payable as a
result of a condemnation, taking or sale in lieu thereof allocable to Landlord’s
fee interest in the Property.  Tenant hereby expressly assigns to
Landlord any and all right, title and interest of Tenant now or hereafter
arising in and to any such award.  Tenant shall, however, have the
right to recover from such authority through a separate award which does not
reduce Landlord’s award, any compensation as may be awarded to Tenant on account
of Tenant’s leasehold interest in the Premises and moving and relocation
expenses and depreciation to and removal of Tenant’s physical
property.

    
      
         

      

      
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    22.
Quiet Enjoyment.  Tenant,
upon paying the Fixed Basic Rent, Additional Rent and other charges herein
required and observing and keeping all covenants, agreements and conditions of
this Lease, shall quietly have and enjoy the Premises during the Term without
hindrance or molestation by anyone claiming by or through Landlord, subject,
however, to the exceptions, reservations and conditions of this Lease and any
Mortgage to which this Lease is subordinate pursuant to an executed
subordination and nondisturbance agreement.

     

    23.
Rules and Regulations.  The
current rules and regulations governing the use and enjoyment of the Premises
and the remainder of the Property (the “Rules and Regulations”) are attached
hereto as Exhibit
F.  Any changes to the Rules and Regulations after the date
hereof shall be approved in writing by the Tenant, which approval shall not be
unreasonably withheld, conditioned or delayed and shall be deemed given if
Tenant fails to respond to a written request therefor within thirty (30) days of
Landlord’s written request.  The Rules and Regulations shall not
materially interfere with Tenant’s use and enjoyment of the Premises in
accordance with the provisions of this Lease for the Permitted Use and shall not
increase or modify Tenant’s obligations under this Lease.  In the
event of a conflict between this Lease and the Rules and Regulations, the Lease
shall control.  To the extent not in conflict with this Lease, Tenant
shall comply at all times with the Rules and Regulations and shall cause its
agents, employees, invitees, visitors, and guests to do so.  Landlord
shall not be responsible to Tenant for non-observance or violation of any of the
Rules and Regulations by any tenant of the Building unless such non-observance
or violation is not remedied within thirty (30) days following receipt of
written notice thereof by Landlord from Tenant, however, Landlord shall not be
responsible to Tenant if Landlord uses commercially reasonable methods to stop
the foregoing non-observance or violation during such thirty (30)-day period and
the non-observance or violation continues to exist beyond that time during which
Landlord makes ongoing commercially reasonable efforts to stop the foregoing
non-observance or violation.

     

    24.
Assignment and Sublease.

     

    a) 
[Intentionally deleted.]

     

    b) 
Tenant may assign this Lease or sublet the whole or any portion of the Premises,
subject to Landlord’s prior written consent, not to be unreasonably withheld,
conditioned, or delayed, on the basis of the following terms and
conditions:

     

    (i)           Landlord
shall respond to any written request for approval to an assignment or sublease
request within ten (10) days of its receipt thereof or such approval shall be
deemed given, provided that any such notice shall provide the following language
in bolded 14 point font: “FAILURE TO RESPOND
TO THIS NOTICE WITHIN TEN (10) DAYS OF RECEIPT SHALL CONSTITUTE LANDLORD’S
DEEMED CONSENT.”  Any disapproval by Landlord shall include
reasonable specificity as to the reasons for such disapproval. Tenant
shall include the following in any such written request:

     

    (1) 
The name and address of the proposed assignee or subtenant;

     

    (2) 
The material terms and conditions of the assignment or
subletting;

    
      
         

      

      
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      (3) 
The nature and character of the business of the proposed assignee or
subtenant;

       

      (4) 
Banking, financial and other credit information relating to the proposed
assignee or subtenant reasonably sufficient to enable Landlord to determine the
proposed assignee’s or sublessee’s ability to assume the financial obligations
contained in the Lease; and

       

      (5) 
In the event of a subleasing of only a portion of the Premises, plans and
specifications for tenant’s layout, partitioning, and electrical installations
for the portion of the Premises to be subleased.

       

      (ii)          Tenant
shall not be permitted to assign or sublet to the following:

       

      (1) 
To a government or quasi-government agency;

       

      (2) 
To an entity whose financial or business character is not consistent with the
other tenants in the Building

    

    

      (3)  To
an entity or person that violates an Exclusive, subject to Section 24(c)
below;

       

      (4)  To
an existing tenant of the Building;

       

      (5)  To
a tenant of any other Building owned by an affiliate of Landlord located within
five (5) miles of the Building to the extent Landlord has space available for
rent five (5) miles of the Building sufficient to address such tenant’s real
property needs;

       

      (6)  If
the Building is less than eighty five percent (85%) leased, for a rental rate
less than seventy-five percent (75%) that which Tenant is paying;
or

       

      (7)  To
a Prospect, subject to Section 24(c) below.

       

      (iii)         The
assignee or subtenant shall assume, by written instrument, all of the
obligations of Tenant as provided by this Lease, and a copy of such assumption
agreement shall be furnished to Landlord within ten (10) days of its execution,
provided, however, any such subtenants shall only be obligated to assume
Tenant’s obligations arising under this Lease with respect to the portion of the
Premises sublet.  Any sublease shall expressly acknowledge that said
subtenant’s rights against Landlord shall be no greater than those of
Tenant.

       

      (iv)        Tenant
and each assignee shall be and remain liable for the observance of all the
covenants and provisions of this Lease as the Lease existed on the date of
assignment to assignee, including, but not limited to, the payment of Fixed
Basic Rent and Additional Rent reserved herein, through the entire Term;
provided that, notwithstanding the foregoing, Tenant also shall be liable for
additional sums owed hereunder incurred by an assignee if such additional sums
are payable pursuant to a right to lease additional space granted in this Lease
or if such additional sums are payable pursuant to an extension of the Term
which is effected pursuant to a Renewal Option.

      
        
           

        

        
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      (v)          
 Tenant may retain any profit received in connection with such subleasing
or assignment.

       

      (vi)           In
any event, the acceptance by Landlord of any rent from an assignee or from any
subtenant or the failure of Landlord to insist upon strict performance of any of
the terms, conditions and covenants herein shall not release Tenant herein, nor
any assignee or subtenant, from any and all of the obligations to be performed
by it in accordance herewith during and for the entire Term.  Tenant
shall provide written notice to Landlord within sixty (60) days of Landlord’s
denial of a request for consent to a sublet or assignment if Tenant asserts that
Landlord’s failure to consent to such sublet or assignment is unreasonable or
otherwise in breach of this Lease.  After such sixty-day period, if a
court shall determine that Landlord acted in breach of this Lease with respect
to denying a request for consent to a sublet or assignment Tenant’s only
available remedy shall be specific performance.

       

      (vii)           Landlord
shall be limited to actual, out-of-pocket costs not to exceed One Thousand Five
Hundred Dollars ($1,500.00) to cover its attorneys’ fees for each request for
consent to any sublet or assignment.  Tenant shall reimburse Landlord
for any such attorneys’ fees within thirty (30) days of receipt of an invoice
therefor.  

       

      (viii)         
In the event of any sublet or assignment, the Guaranty shall remain in
effect.

       

      c)  With
respect to Tenant’s obligation to not sublease or assign to any entity or person
that violates an exclusive use provision contained in another lease at the
Property (all such exclusive use provisions, collectively, “Exclusives”) or to
any prospect with whom Landlord currently is negotiating for space in the
Building and for whom Landlord has prepared a preliminary space plan and has
tendered a written proposal (collectively, “Prospects”), at any time during the
Term (which includes multiple times), Tenant may provide Landlord with a written
notice (the “Tenant’s List Request”) requesting a list of current Exclusives and
Prospects, which notice shall contain the following text in bolded, fourteen
(14) point font, “FAILURE TO RESPOND
WITHIN 10 DAYS MAY RESULT IN THE WAIVER OF IMPORTANT LANDLORD RIGHTS RELATED TO
TENANT’S ASSIGNMENT OR SUBLETTING RIGHTS.” Landlord shall provide Tenant
with such a list (the “Landlord’s List”) within ten (10) days of its receipt of
a Tenant’s List Request.  If Tenant provides Landlord with a Tenant’s
List Request, then, for the ninety (90) day period after Landlord’s delivery of
a Landlord’s List, Sections 24(b)(ii)(3) and 24(b)(ii)(6) shall only apply to
any Exclusives or Prospects included in such Landlord’s List.  If
Landlord fails to provide a Landlord’s List within ten (10) days of a Tenant’s
List Request, then Sections 24(b)(ii)(3) and 24(b)(ii)(6) shall be deemed null
and void for a period of ninety (90) days thereafter.

      
        
           

        

        
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      d)  Notwithstanding
anything to the contrary in this Lease, Landlord’s consent shall not be required
for an assignment or sublease to any of the following (each, a “Permitted
Transferee”): (i) a corporation, limited partnership, limited liability company
or other entity into or with which Tenant is merged or consolidated or to which
all or substantially all of Tenant’s assets are transferred; (ii) to any
corporation, limited partnership, limited liability company or other entity or
person which controls or is controlled by Tenant or is under common control with
Tenant provided such successor entity is an operating entity having the
financial ability to meet Tenant’s obligations under this
Lease.  Furthermore, Tenant covenants that if Tenant merges,
consolidates or transfers substantially all of the assets of Tenant to another
entity, then Tenant shall assign this Lease to such other entity. Landlord shall
not be bound by any assignment or sublet to a Permitted Transferee until it
receives written notice thereof, and any sublet or assignment shall be subject
to Section 24(b)(iii), 24(b)(iv), 24(b)(vi), and 24(b)(viii)
hereof.  The originally named Tenant hereunder shall not be liable for
the observance of any covenants or provisions of this Lease other than the
requirement to pay any amounts due hereunder to Landlord following assignment of
this Lease to a Permitted Transferee.

       

      e)   Except
as specifically set forth above, no portion of the Premises or of Tenant’s
interest in this Lease may be acquired by any other person or entity, whether by
assignment, mortgage, sublease, transfer, operation of law or act of
Tenant.  

       

      f)    In
the event Tenant desires to assign its lease or sublet any portion of the
Premises, Tenant shall cause any and all advertisements or notices of
availability to be delivered to Landlord for Landlord’s approval, which shall
not be unreasonably withheld or delayed, prior to releasing or publishing
same.

       

      g)   To
the extent that Tenant wishes to pledge its furniture, trade fixtures, or
equipment related to Tenant’s business in the Premises, then Landlord shall
enter into a landlord’s lien waiver with such pledgee on a form acceptable to
Landlord in its reasonable discretion.  Landlord hereby waives any
statutory lien or other security interest it may otherwise possess by operation
of law or otherwise with regard to any personalty of Tenant, including
inventory, equipment, trade fixtures, shelves, machinery and accounts
receivable.

       

      h)   Any
transfer by Landlord of its interest in the Property, Premises or Building shall
be made subject to this Lease, and Landlord’s transferee shall be bound by all
of the terms and provisions of this Lease from and after the date of the
transfer.

       

      25.  Relocation. 
Landlord
shall not have the right to relocate the Premises.

      
        
           

        

        
          32

          
            

          

        

        
           

        

      

       

      26.
Subordination.  Tenant
shall receive subordination, non-disturbance, recognition and attornment
agreements reasonably satisfactory in form and substance to Tenant from
Landlord’s current lender which holds a mortgage lien on the Property and any
other party, present or future, who is a mortgagee, lienholder or ground lessor
of Landlord (collectively, the “SNDRA Requirement”), and Tenant shall execute
such agreements and deliver the same to Landlord within five (5) days of
Tenant’s receipt thereof.  The subordination, non-disturbance,
recognition and attornment agreement (“SNDRA”) from Landlord’s current lender
which holds a mortgage lien on the Property is attached as Exhibit
O, is hereby deemed as satisfactory to meet the SNDRA Requirement, and
shall be executed and delivered by all parties thereto simultaneously with
execution of this Lease.  This Lease and Tenant’s rights under this
Lease shall be subject and subordinate at all times in lien and priority to any
mortgage or other primary encumbrance, now or hereafter placed upon or affecting
the Property or the Premises, and to all renewals, modifications, consolidations
and extensions thereof, provided that the SNDRA Requirement is
met.  Provided that the SNDRA Requirement is met, Tenant shall execute
and deliver upon demand any further instrument or instruments, reasonably
satisfactory in form and substance to Tenant, confirming the subordination of
this Lease to the lien of any such first Mortgage or to the lien of any other
Mortgage, if requested to do so by Landlord with the consent of the first
Mortgagee, and any further instrument or instruments of attornment reasonably
satisfactory in form and substance to Tenant that may be desired by any such
Mortgagee or Landlord, provided, however, that any holder of such lien or
Mortgage agrees not to disturb the use and occupancy of the Premises in
accordance with the terms of this Lease upon any
foreclosure.  Notwithstanding the foregoing, any Mortgagee may at any
time subordinate its Mortgage to this Lease, without Tenant’s consent, by giving
notice in writing to Tenant and thereupon this Lease shall be deemed prior to
such Mortgage without regard to their respective dates of execution and
delivery.  In that event such Mortgagee shall have the same rights
with respect to this Lease as though this Lease had been executed prior to the
execution and delivery of the Mortgage and had been assigned to such
Mortgagee.  Notwithstanding the foregoing, Tenant’s failure to furnish
an SNDRA substantially similar to Exhibit
O within five (5) days following Landlord’s delivery of a notice to
Tenant stating that Tenant failed to provide such instrument during the initial
five (5) day request period shall constitute an event of default under this
Lease.  Landlord represents that the only Mortgage applicable to the
Property as of the date hereof is: Open-End Mortgage, Assignment of Rents and
Leases, Security Agreement and Financing Statement dated December 21, 2007
executed by Landlord in favor of Bank of America, N.A., as recorded in the
Office of the Bucks County Recorder of Deeds, Bucks County, Pennsylvania on
January 2, 2008 as Document No. 2008000462, Mortgage Book 5652, page 1023, and
that there are no ground leases applicable to the Property.

      

      27.
Curing Tenant’s Defaults.  If Tenant
defaults in the performance of any of its obligations under this Lease, Landlord
may, without any obligation to do so and in addition to any other rights it may
have in law or equity, elect to cure such default on behalf of Tenant after five
(5) days prior written notice (except in the case of an emergency that presents
a significant and immediate threat of damage or harm to persons or property) to
Tenant.  Tenant shall reimburse Landlord upon demand for any sums paid
or costs incurred by Landlord in curing such default, including Interest thereon
from the respective dates of Landlord’s making the payments and incurring such
costs, which sums and costs together with Interest thereon shall be deemed
Additional Rent payable within thirty (30) days of demand.

       

      28.
Surrender.

       

      a)   At
the expiration of the Term or earlier termination of this Lease, Tenant shall
promptly yield up the Premises and all fixtures, improvements, alterations and
additions thereto (except for Tenant’s trade fixtures and Tenant’s equipment) in
a condition which is clean of garbage and debris and broom clean and in the same
condition, order and repair in which they are required to be kept throughout the
Term, ordinary wear and tear and damage by fire and other insured casualty
excepted.  All of Tenant’s property required to be removed pursuant to
this Lease not removed prior to the expiration or earlier termination of this
Lease shall thereupon be conclusively presumed to have been abandoned by Tenant
and Landlord may, at its option, take over possession of such property and
either (a) declare the same to be the property of Landlord by written notice to
Tenant at the address provided herein or (b) at the sole cost and expense of
Tenant, remove and store and/or dispose of the same or any part thereof in any
manner that Landlord shall choose without incurring liability to Tenant or any
other person, and Tenant’s failure to remove such property shall be deemed a
holding over by Tenant under Section 28(b) hereunder until such failure is
rectified by Landlord or Tenant.

      
        
           

        

        
          33

          
            

          

        

        
           

        

      

       

      b)  If
Tenant, or any person claiming through Tenant, continues to occupy the Premises
after the expiration of the Term or earlier termination of this Lease or any
renewal thereof the tenancy under this Lease shall become, at the option of
Landlord, expressed in a written notice to Tenant and not otherwise,
month-to-month, terminable by Tenant or Landlord on thirty (30) days prior
notice, under the same terms and conditions set forth in this Lease, except
that, regardless of whether Landlord grants such consent, the Fixed Basic Rent
during such continued occupancy shall be one hundred and fifty percent (150%) of
the amount set forth in the Preamble for the last month of the
Term.  Anything to the contrary notwithstanding, any holding over by
Tenant without Landlord’s prior written consent shall constitute an event of
default under this Lease and shall be deemed a tenancy at sufferance and shall
be subject to all the remedies set forth in Subsection 29(b) of this
Lease.

       

      29.
Defaults-Remedies.

       

      a)   Defaults.  It shall
be a default or event of default under this Lease if any one or more of the
following events occurs:

       

      (1) 
Tenant fails to pay in full, within ten (10) days of written notice from
Landlord of Tenant’s failure to pay, any and all installments of Fixed Basic
Rent or Additional Rent or any other charges or payments due and payable under
this Lease whether or not herein included as rent.

       

      (2) 
Tenant violates or fails to perform or otherwise breaches any agreement, term,
covenant or condition contained in this Lease where such failure shall continue
for a period of thirty (30) days after written notice from Landlord; provided,
however, that if the nature of the default is such that the same cannot
reasonably be cured within such thirty (30) day period, Tenant shall not be
deemed to be in default if Tenant shall commence the cure of such default within
such  thirty (30) day period and thereafter diligently prosecute the
same to completion within ninety (90) days after Tenant receives written notice
thereof.

       

      (3) 
Tenant abandons or vacates the Premises without notice and without first having
paid to Landlord the amount required pursuant to Section 5(a)
hereof.

       

      (4) 
Tenant becomes insolvent or bankrupt in any sense or makes an assignment for the
benefit of creditors or if a petition in bankruptcy or for reorganization or for
an arrangement with creditors under any federal or state law is filed by or
against Tenant, or a bill in equity or other proceeding for the appointment of a
receiver or similar official for any of Tenant’s assets is commenced, or if any
of the real or personal property of Tenant shall be levied upon by any sheriff,
marshal or constable; provided, however, that any proceeding brought by anyone
other than the parties to this Lease under any bankruptcy, reorganization
arrangement, insolvency, readjustment, receivership or similar law shall not
constitute an event of default until such proceeding, decree, judgment or order
has continued unstayed for more than sixty (60) consecutive
days.

      
        
           

        

        
          34

          
            

          

        

        
           

        

      

       

      (5) 
Any of the events enumerated in Subsections (a)(3) of this Section 28 happen to
the Guarantor of this Lease or any default beyond applicable notice and cure
periods occurs with respect to the Guaranty.

       

      b)  Remedies.  Upon the
occurrence of an event of default under this Lease, Landlord shall have all of
the following rights:

       

      (i)           Landlord
may accelerate the whole or any part of the Fixed Basic Rent and all Additional
Rent for the entire unexpired balance of the Term, as well as all other charges,
payments, costs and expenses herein agreed to be paid by Tenant, and, as further
clarification for the avoidance of doubt, any Fixed Basic Rent or other charges,
payments, costs and expenses so accelerated shall, in addition to any and all
installments of rent already due and payable and in arrears and any other charge
or payment herein reserved, included or agreed to be treated or collected as
rent and any other charge, expense or cost herein agreed to be paid by Tenant
which may be due and payable and in arrears, be deemed due and payable as if, by
the terms and provisions of this Lease, such accelerated rent and other charges,
payments, costs and expenses were on that date payable in advance.

       

      (ii)           Landlord
may re-enter the Premises and, at the option of Landlord, remove all persons and
all or any property therefrom, either by summary dispossess proceedings or by
any suitable action or proceeding at law or by force or otherwise, without being
liable for prosecution or damages therefor, and Landlord may repossess and enjoy
the Premises.  Upon recovering possession of the Premises by reason of
or based upon or arising out of a default on the part of Tenant, Landlord may,
at Landlord’s option, either terminate this Lease or make such alterations and
repairs as may be necessary in order to relet the Premises and may relet the
Premises or any part or parts thereof in Landlord’s name for a term or terms
which may, at Landlord’s option, be less than or exceed the period which would
otherwise have constituted the balance of the Term and at such rent or rents and
upon such other terms and conditions as in Landlord’s sole discretion may seem
advisable and to such person or persons as may in Landlord’s discretion seem
best; upon each such reletting all rents received by Landlord from such
reletting shall be applied as follows: first, to the payment of any costs and
expenses of such reletting, including all costs of alterations and repairs;
second, to the payment of any indebtedness other than Fixed Basic Rent,
Additional Rent or other charges due hereunder from Tenant to Landlord; third,
to the payment of Fixed Basic Rent, Additional Rent and other charges due and
unpaid hereunder; and the residue, if any, shall be held by Landlord and applied
in payment of future rent as it may become due and payable
hereunder.  If rentals received from reletting during any month are
less than that to be paid during that month by Tenant, Tenant shall pay any such
deficiency to Landlord.  Such deficiency shall be calculated and paid
monthly.  No such re-entry or taking possession of the Premises or the
making of alterations or improvements thereto or the reletting thereof shall be
construed as an election on the part of Landlord to terminate this Lease unless
written notice of termination is given to Tenant.  Landlord shall in
no event be liable in any way whatsoever for failure to relet the Premises or,
in the event that the Premises or any part or parts thereof are relet, for
failure to collect the rent thereof under such
reletting.  Notwithstanding any such reletting without termination,
Landlord may at any time thereafter elect to terminate this Lease for such
previous breach.

      
        
           

        

        
          35

          
            

          

        

        
           

        

      

       

      (iii)           Landlord
may terminate this Lease and the Term without any right on the part of Tenant to
waive the forfeiture by payment of any sum due or by other performance of any
condition, term or covenant broken.  Upon such termination, Landlord
shall be entitled to recover, in addition to any and all sums and damages for
violation of Tenant’s obligations hereunder in existence at the time of such
termination, damages for Tenant’s default in an amount equal to the amount of
the Fixed Basic Rent and Additional Rent reserved for the balance of the Term,
as well as all other charges, payments, costs and expenses herein agreed to be
paid by Tenant all of which amount shall be immediately due and payable from
Tenant to Landlord upon demand therefor.

       

      (iv)           CONFESSION OF JUDGMENT FOR
POSSESSION.  UPON THE OCCURRENCE OF AN EVENT OF DEFAULT OR UPON
THE EXPIRATION OR TERMINATION OF THE TERM OF THIS LEASE, FOR THE PURPOSE OF
OBTAINING POSSESSION OF THE PREMISES, TENANT HEREBY AUTHORIZES AND EMPOWERS THE
PROTHONOTARY OR ANY ATTORNEY OF ANY COURT OF RECORD IN THE COMMONWEALTH OF
PENNSYLVANIA OR ELSEWHERE, AS ATTORNEY FOR TENANT AND ALL PERSONS CLAIMING UNDER
OR THROUGH TENANT, TO APPEAR FOR AND CONFESS JUDGMENT AGAINST TENANT FOR
POSSESSION OF THE PREMISES, AND AGAINST ALL PERSONS CLAIMING UNDER OR THROUGH
TENANT, IN FAVOR OF LANDLORD, FOR RECOVERY BY LANDLORD OF POSSESSION THEREOF,
FOR WHICH THIS AGREEMENT OR A COPY HEREOF VERIFIED BY AFFIDAVIT, SHALL BE A
SUFFICIENT WARRANT; AND THEREUPON A WRIT OF POSSESSION MAY IMMEDIATELY ISSUE FOR
POSSESSION OF THE PREMISES, WITHOUT ANY PRIOR WRIT OR PROCEEDING WHATSOEVER AND
WITHOUT ANY STAY OF EXECUTION. IF FOR ANY REASON AFTER SUCH ACTION HAS BEEN
COMMENCED THE SAME SHALL BE TERMINATED AND THE POSSESSION OF THE PREMISES
REMAINS IN OR IS RESTORED TO TENANT, LANDLORD SHALL HAVE THE RIGHT UPON THE
OCCURRENCE OF ANY SUBSEQUENT EVENT OF DEFAULT TO CONFESS JUDGMENT IN ONE OR MORE
FURTHER ACTIONS IN THE MANNER AND FORM SET FORTH ABOVE TO RECOVER POSSESSION OF
SAID PREMISES FOR SUCH SUBSEQUENT DEFAULT.  NO SUCH TERMINATION OF
THIS LEASE, NOR TAKING, NOR RECOVERING POSSESSION OF THE PREMISES SHALL DEPRIVE
LANDLORD OF ANY REMEDIES OR ACTION AGAINST TENANT FOR FIXED BASIC RENT,
ADDITIONAL RENT OR FOR OTHER SUMS DUE HEREUNDER OR FOR DAMAGES DUE OR TO BECOME
DUE FOR THE BREACH OF ANY CONDITION OR COVENANT HEREIN CONTAINED, NOR SHALL THE
BRINGING OF ANY SUCH ACTION FOR RENT AND/OR OTHER SUMS DUE HEREUNDER, OR BREACH
OF COVENANT OR CONDITION NOR THE RESORT TO ANY OTHER REMEDY HEREIN PROVIDED FOR
THE RECOVERY OF RENT AND/OR OTHER SUMS DUE HEREUNDER OR DAMAGES FOR SUCH BREACH
BE CONSTRUED AS A WAIVER OF THE RIGHT TO INSIST UPON THE FORFEITURE AND TO
OBTAIN POSSESSION IN THE MANNER HEREIN PROVIDED.

       

      c) 
Waiver of Jury
Trial.  IT IS MUTUALLY AGREED BY AND BETWEEN LANDLORD AND
TENANT THAT THEY HEREBY WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING OR
COUNTER-CLAIM BROUGHT BY EITHER OF THE PARTIES HERETO AGAINST THE OTHER ON ANY
MATTER WHATSOEVER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS LEASE, THE
RELATIONSHIP OF LANDLORD AND TENANT, TENANT’S USE OF OCCUPANCY OF THE PREMISES
OR CLAIM OF INJURY OR DAMAGE.

      
        
           

        

        
          36

          
            

          

        

        
           

        

      

       

      d) 
Non-Waiver.  No
waiver by Landlord of any breach by Tenant of any of Tenant’s obligations,
agreements or covenants herein shall be a waiver of any subsequent breach or of
any other obligation, agreement or covenant, nor shall any forbearance by
Landlord to seek a remedy for any event of default by Tenant be a waiver by
Landlord of any rights and remedies with respect to such or any subsequent event
of default.

       

      e) 
Rights and Remedies
Cumulative.  No right or remedy herein conferred upon or
reserved to Landlord is intended to be exclusive of any other right or remedy
provided herein or by law, but each shall be cumulative and in addition to every
other right or remedy given herein or now or hereafter existing at law or in
equity or by statute. Landlord shall have a duty to mitigate its damages in the
event of Tenant’s default under this Lease.

       

      30. 
Condition of Premises.  a)  
Tenant accepts the Property and the Premises in their “AS IS” “WHERE IS”
condition or state, except as expressly set forth in this Lease.

       

      31. Hazardous
Substances.

       

      a) 
Neither Tenant nor Landlord shall knowingly cause or allow the generation,
treatment, storage or disposal of Hazardous Substances on or near the Premises
or Property.  “Hazardous Substances” shall mean (i) any hazardous
substance as that term is now or hereafter defined in the Comprehensive
Environmental Response, Compensation and Liability Act (“CERCLA”), 42 U.S.C.
9601 et seq.,
as amended, (ii) any hazardous waste or hazardous substance as those terms are
now or hereafter defined in any local, state or Federal law, regulation or
ordinance not inapplicable to the Premises and Property, or (iii) petroleum
including crude oil or any fraction thereof, except for use and storage of
cleaning and office supplies used in the ordinary course of Tenant’s business
and then only if (x) such materials are in small quantities, properly labeled
and contained and (y) such materials are used, transported, stored, handled and
disposed of in accordance with all applicable governmental laws, rules and
regulations.

       

      b) 
Tenant agrees to indemnify, defend and hold harmless Landlord, its employees,
agents, successors, and assigns, from and against any and all damage, claim,
liability, or loss, including reasonable attorneys’ and other fees, arising out
of or in any way connected to the generation, treatment, storage or disposal of
Hazardous Substances by Tenant, its employees, agents, contractors, or invitees,
on or near the Premises or Property.  Such duty of indemnification
shall include, but not be limited to damage, liability, and loss pursuant to all
Federal, state and local environmental laws, rules and ordinances, strict
liability and common law (collectively, “Environmental Laws”).

       

      c)   Landlord
represents, warrants and covenants that, except as set forth in that certain
Phase I Environmental Site Assessment for the Property dated 12/3/07 and
prepared by ATC Associates, Inc., Landlord has no knowledge of any Hazardous
Substances in, on or under the Property in quantities or concentrations that
require remediation under applicable Environmental Laws.

      
        
           

        

        
          37

          
            

          

        

        
           

        

      

       

      d) 
Landlord shall indemnify, defend and hold Tenant and Tenant's employees, agents,
successors and assigns, from and against (i) any obligation to remediate any
Hazardous Substances present in, on or under the Property not caused by Tenant,
and (ii) all damages, claims, liabilities or losses, including reasonable
attorneys' fees and other fees, arising out of or in any way connected to the
generation, treatment, storage or disposal of Hazardous Substances by Landlord,
its employees, agents or contractors, on or in the Premises or the
Property.  Such duty of indemnification shall include, but not be
limited to damage, liability, or loss pursuant to all Federal, state and local
environmental laws, rules and ordinances, strict liability and common
law.

       

      e) 
Tenant agrees to notify Landlord, and Landlord agrees to notify Tenant,
immediately, to the extent of knowledge of Tenant or Landlord, as the case may
be, of any disposal of Hazardous Substances in the Premises or Property, of any
discovery of Hazardous Substances in the Premises or the Property, or of any
notice by a governmental authority or private party alleging or suggesting that
a disposal of Hazardous Substances on or near the Premises or Property may have
occurred.  Furthermore, Tenant shall provide Landlord, and Landlord
shall provide Tenant, with full and complete access to any documents or
information in its possession or control relevant to the question of the
generation, treatment, storage, or disposal of Hazardous Substances on or near
the Premises or the Property.

       

      32.
Recording.  Upon
Tenant’s request, a Memorandum of Lease shall be executed by the parties and
recorded by Tenant, at its expense, in a form acceptable to both Landlord and
Tenant, provided that Landlord and Tenant shall deposit a termination of such
Memorandum of Lease in escrow with a title company acceptable to Lender pursuant
to the form of escrow agreement attached hereto as Exhibit
N.

       

      33.
Brokers’ Commission.  Each
party represents and warrants to the other that the Brokers (as defined in the
Preamble) are the sole brokers with whom such party has negotiated in bringing
about this Lease and each party agrees to indemnify and hold the other harmless
from any and all claims of other brokers dealt with by such party and expenses
in connection therewith arising out of or in connection with the negotiation of
or the entering into this Lease by Landlord and Tenant.  Further,
Landlord shall pay all commissions due and payable to the Brokers as a result of
the execution of this Lease pursuant to the terms of the respective separate
agreements entered into between Landlord and the Brokers and Landlord agrees to
indemnify and hold the Tenant harmless from any and all claims of either Broker
for the payment of commissions or other costs and expenses.

       

      34.
Notices.  All
notices, demands, requests, consents, certificates, and waivers required or
permitted hereunder from either party to the other shall be in writing and sent
by United States certified mail, return receipt requested, postage prepaid,
facsimile or by recognized overnight courier, addressed as follows:

       

      
        
           

        

        
          38

          
            

          

        

        
           

        

      

       

      
        
          
            
              
                
                  
                    
                      	
                              If to Tenant prior to the Commencement
      Date:

                              3190
      Tremont Avenue

                              Trevose,
      PA 19053

                              Attention:
      General Counsel

                              Facsimile:
      215-354-1049

                            
	 
	
                              If to Tenant on and after the Commencement
      Date:

                              At
      the Premises

                              Attention:
      General Counsel

                            
	
                              Facsimile:
      215-354-1049

                            
	 
	
                              If to Landlord:

                              Horizon
      Office Development I, L.P.

                              2701
      Renaissance Boulevard, 4th
      Floor

                              King
      of Prussia, PA 19406

                              Attention:
      Mr. Richard Heany

                            
	
                              Facsimile:
      610-337-5599

                               

                              with a copy to:

                              Mitchell
      Campbell, LLC

                              2701
      Renaissance Boulevard, 4th
      Floor

                              King
      of Prussia, PA 19406

                              Attention:
      Yolanda Rodriguez, Esquire

                              Facsimile:
      610-337-5599

                               

                              Prudential
      Real Estate Investors

                              8
      Campus Drive, 4th
      Floor

                              Parsippany,
      NJ 07054

                              Attention:
      Mr. Daniel McKeever

                              Facsimile:
      973-683-1670

                               

                              Thompson
      & Knight LLP

                              Burnett
      Plaza, Suite 1600

                              801
      Cherry Street, Unit #1

                              Fort
      Worth, Texas 76102

                              Attention:
      Susan E. Coleman, Esquire

                              Facsimile:
      214-999-1555

                            

                    

                  

                

              

            

          

        

      

      

      Either
party may at any time, in the manner set forth for giving notices to the other,
specify a different address or facsimile to which notices to it shall thereafter
be sent.  All notices shall be effective upon receipt or rejection of
receipt by the addressee.

      

      35.
Irrevocable Offer; No Option.  Although
Tenant’s execution of this Lease shall be deemed an offer irrevocable by Tenant,
the submission of this Lease by Landlord to Tenant for examination shall not
constitute a reservation of or option for the Premises. This Lease shall become
effective only upon execution thereof by an authorized officer of the general
partner of Landlord on behalf of Landlord and by an authorized officer of
Tenant.

      
        
           

        

        
          39

          
            

          

        

        
           

        

      

       

      36.
Inability to Perform; Damages.  It is
understood and agreed that Landlord and Tenant shall in no event be liable for
failure to perform any obligation under this Lease in the event Landlord or
Tenant is prevented from so performing by strike, lockout, breakdown, accident,
order or regulation enacted after the Effective Date of or by any governmental
authority, or because of war or other emergency, or for any cause beyond
Landlord’s or Tenant’s reasonable control.  The period of any such
delay or such prevention shall be deemed added to the time herein provided for
the performance of any such obligation.  Notwithstanding the
foregoing, in no event shall the terms of this paragraph apply to (a) Sections 3
and 4 of this Lease or (b) any monetary obligations under this
Lease.  In no event shall either party ever be liable to the other for
any indirect or consequential damages.

       

      37.
Survival.  Notwithstanding
anything to the contrary contained in this Lease, the expiration of the Term,
whether by lapse of time or otherwise, shall not relieve Tenant or Landlord from
its obligations accruing prior to the expiration of the Term.  Each
indemnity agreement and hold harmless agreement contained herein shall survive
the expiration or termination of this Lease.

       

      38.
Corporate Tenants.  a) 
Tenant hereby covenants and warrants that: Tenant is a duly formed corporation
qualified to do business in the state in which the Property is located; Tenant
will remain qualified to do business in said state throughout the Term and any
renewals thereof; and such persons executing this Lease are duly authorized by
such corporation to execute and deliver this Lease on behalf of the
corporation.

       

      b) 
Landlord hereby covenants and warrants that: Landlord is a duly formed limited
partnership qualified to do business in the state in which the Property is
located; Landlord will remain qualified to do business in said state throughout
the Term and any renewals thereof; and such persons executing this Lease are
duly authorized by such limited partnership to execute and deliver this Lease on
behalf of the limited partnership.

       

      c) 
Landlord, to induce Tenant to enter into this Lease and to lease the Premises
from Landlord, represents and warrants to Tenant as follows:

       

      (i)           The
entry by Landlord into this Lease, and the observance and performance of each of
Landlord’s agreements and obligations hereunder, have been duly approved by all
necessary action on the part of Landlord.  This Lease constitutes the
valid and binding obligations of Landlord, enforceable in accordance with its
terms;

       

      (ii)           There
are no judgments, orders, suits, actions, garnishments, attachments or
proceedings of any nature by or before any court, commission, board or other
governmental body pending, or, to the best knowledge of Landlord, threatened in
writing, which involve or affect, or will involve or affect, the Premises or the
validity or enforceability of this Lease or involve any risk of judgment or
liability being imposed upon Landlord that could materially adversely affect the
financial condition of Landlord or Landlord’s ability to observe or perform
fully its agreements and obligations hereunder; and

       

      (iii)           There
is no existing agreement, commitment, option or right with, in or to any person
to lease, or transfer the fee interest of, all or any portion of the Premises,
other than the leasing of the Premises pursuant to this Lease.

      
        
           

        

        
          40

          
            

          

        

        
           

        

      

       

      39.
Tenant Representations and Warranties.  Tenant
hereby represents and warrants to Landlord (i) that Guarantor’s most recent
publicly available financial statements are true in all material respects as of
the date thereof, (ii) that if Guarantor is ever not a publicly traded entity,
then, upon ninety (90) days prior written request from Landlord (which request
shall not be made more than two (2) times in any one (1) calendar year), Tenant
will deliver to Landlord current financial statements for Guarantor which shall
be prepared in accordance with generally accepted accounting principles
consistently applied, provided that Landlord and any current or prospective
lender or investor of Landlord or any prospective purchaser of the Property
shall first enter into a non-disclosure agreement with Tenant on the form
attached hereto as Exhibit
J.

       

      40.
Waiver of Invalidity of Lease.  Each
party agrees that it will not raise or assert as a defense to any obligation
under the Lease or make any claim that the Lease is invalid or unenforceable due
to any failure of this document to comply with ministerial requirements
including, without limitation, requirements for corporate seals, attestations,
witnesses, notarizations or other similar requirements and each party hereby
waives the right to assert any such defenses or make any claim of invalidity or
unenforceability due to any of the foregoing.

       

      41.
Security Deposit.  As
additional security for the full and prompt performance by Tenant of the terms
and covenants of this Lease, Tenant has deposited with Landlord the Security
Deposit, which shall be held in a segregated, interest bearing and federally
insured account.  The Security Deposit shall not constitute rent for
any month (unless so applied by Landlord on account of Tenant’s default
hereunder).  Tenant shall, upon demand, restore any portion of the
Security Deposit which may be applied by Landlord to cure any default by Tenant
hereunder.  Tenant shall be entitled to interest thereon and Landlord
shall not commingle such Security Deposit with any other funds of
Landlord.  To the extent that Landlord has not applied the Security
Deposit or any portion thereof on account of a default, the Security Deposit
plus any applicable interest earned thereon, or such remaining portion of the
Security Deposit plus any applicable interest earned thereon, shall be returned
to Tenant, promptly following the termination of this Lease.  The
Security Deposit shall not be considered an advance payment of rent or a measure
of Landlord’s damages in case of default by Tenant.  If Tenant
defaults with respect to any provision of this Lease, Landlord may, but shall
not be required to, from time to time, without prejudice to any other remedy,
use, apply or retain all or any part of this Security Deposit for the payment of
any rent or any other sum in default or for the payment of any other amount
which Landlord may spend or become obligated to spend by reason of Tenant’s
default or to compensate Landlord for any other loss or damage which Landlord
may suffer by reason of Tenant’s default, including, without limitation costs
and reasonable attorneys’ fees incurred by Landlord to recover possession of the
Premises.  In the event Landlord or any of its successors or assigns
sells, assigns, or otherwise  transfers its interests in this Lease,
then such party shall have the obligation to pay to or give control of the
Security Deposit to its successor or assign.

       

      42.
Estoppel Certificate.  Tenant
shall from time to time, within five (5) days after Landlord’s request or that
of any Mortgagee of Landlord, execute, acknowledge and deliver to Landlord a
certificate substantially in the form attached hereto as Exhibit
G (the “Tenant Estoppel Certificate”) provided that Tenant shall be
permitted to add to such form any statements required to correct any
inaccuracies in such form at the time of execution.  Any certification
delivered pursuant to the provisions of this Section shall be intended to be
relied upon by Landlord and any Mortgagee or prospective Mortgagee or purchaser
or prospective purchaser of the Property or of any interest
therein.  Tenant’s failure to furnish the Tenant Estoppel Certificate
within said five (5) day period shall constitute an event of default under this
Lease. Landlord shall have the right to request Tenant to execute a Tenant
Estoppel Certificate no more than two (2) times in any twelve (12)-month
period.

      
        
           

        

        
          41

          
            

          

        

        
           

        

      

       

      43.
Rights Reserved by Landlord.  Landlord
waives no rights, except those that may be specifically waived herein, and
explicitly retains all other rights including, without limitation, the following
rights, each of which Landlord may exercise without notice to Tenant and without
liability to Tenant for damage or injury to property, person or business on
account of the exercise thereof, and the exercise of any such rights shall not
be deemed to constitute an eviction or disturbance of Tenant’s use or possession
of the Premises and shall not give rise to any claim for set-off or abatement of
Rent or any other claim:

       

      a) 
To change the name or street address of the Building;

       

      b) 
The exclusive right to use the name of the Building for all purposes, except
that Tenant may use the name on its business address and for no other
purpose;

       

      c) 
Subject to Section 14, to install, affix and maintain any and all signs on the
exterior and on the interior of the Building or the Property;

       

      d) 
Subject to Section 17, to decorate or to make repairs, alterations, additions,
or improvements, whether structural or otherwise, in and about the Building, or
any part thereof (other than the Premises, and for such purposes Landlord shall
not be permitted to enter upon the Premises except as set forth in Section 17
above), and during the continuance of any of such work, to temporarily close
doors, entry ways, public space and corridors in the Building and to interrupt
or temporarily suspend services or use of Common Facilities, all without
affecting any of Tenant’s obligations hereunder, so long as the Premises are
reasonably accessible and usable;

       

      e) 
To furnish door keys for the entry door(s) in the Premises on the Commencement
Date and to retain at all times, and to use in appropriate instances, keys to
all doors into the Premises.  Tenant agrees to purchase only from
Landlord additional duplicate keys as required, to change no locks on doors into
the Premises, and not to affix locks on doors into the Premises without the
prior written consent of Landlord.  Upon the expiration of the Term or
Tenant’s right to possession, Tenant shall return all keys on doors into the
Premises to Landlord and shall disclose to Landlord the combination of any
safes, cabinets or vaults left in the Premises;

       

      f) 
To designate and approve all window coverings used in the Building;

       

      g) 
To approve the weight, size and location of safes, vaults and other heavy
equipment and articles in and about the Premises and the Building so as not to
exceed the legal load per square foot designated by the structural engineers for
the Building, and to require all such items and furniture and similar items to
be moved into or out of the Building and Premises only at such times, in such
manner and upon such terms as Landlord shall direct in writing;

       

      h) 
To regulate delivery of supplies and the usage of the loading docks, receiving
areas and freight elevators;

       

      
        
           

        

        
          42

          
            

          

        

        
           

        

      

       

      i) 
To erect, use and maintain pipes, ducts, wiring and conduits, and appurtenances
thereto, in and through the Premises;

       

      j) 
To alter the layout, design and/or use of the Building in such manner as
Landlord, in its sole discretion, deems appropriate, so long as the character of
the Building as a first class office building is maintained; and

       

      k) 
Subject to Section 15(c), the exclusive right to use or dispose of the use of
the roof of the Building.

       

      44.
Miscellaneous.

       

      a) 
Entire
Agreement.  This Lease represents the entire agreement between
the parties hereto and there are no collateral or oral agreements or
understandings between Landlord and Tenant with respect to the Premises or the
Property.  No rights, easements or licenses are acquired in the
Property or any land adjacent to the Property by Tenant by implication or
otherwise except as expressly set forth in the provisions of this
Lease.

       

      b) 
Modification.  This
Lease shall not be modified in any manner except by an instrument in writing
executed by the parties.

       

      c) 
Interpretation.  The
masculine (or neuter) pronoun, singular number, shall include the masculine,
feminine and neuter genders and the singular and plural
number.  Unless the context of this Lease clearly requires otherwise,
references to “including” has the inclusive meaning identified with the phrase
“but not limited to” and references to “hereunder” or “herein” relate to this
Lease as a whole and not to any particular Section, subsection or
clause.

       

      d) 
Exhibits.  Each
writing or plan referred to herein as being attached as an Exhibit or otherwise
designated herein as an Exhibit hereto is hereby made a part of this
Lease.

       

      e) 
Captions and
Headings.  The captions and headings of sections, subsections
and the table of contents herein are for convenience only and are not intended
to indicate all of the subject matter in the text and they shall not be deemed
to limit, construe, affect or alter the meaning of any provisions of this Lease
and are not to be used in interpreting this Lease or for any other purpose in
the event of any controversy.

       

      f) 
Severability.  If
any term or provision of this Lease, or the application thereof to any person or
circumstance shall, to any extent, be invalid or unenforceable, the remainder of
this Lease, or the application of such term or provision to persons or
circumstances other than those as to which it is held invalid or unenforceable,
shall not be affected thereby, and each term and provision of this Lease shall
be valid and be enforced to the fullest extent permitted by law.

       

      g) 
Counterparts.  This
Lease may be executed in two or more counterparts (delivery of which may occur
via facsimile or electronic mail attachment in “pdf” or similar format), each of
which shall be binding as of the date first written above, and all of which
shall constitute one and the same instrument.  Each such copy shall be
deemed an original, and it shall not be necessary in making proof of this
instrument to produce or account for more than one such
counterpart.

      
        
           

        

        
          43

          
            

          

        

        
           

        

      

       

      h) 
No Representations by
Landlord.  Landlord and Landlord’s agents have made no
representations, agreements, conditions, warranties, understandings or promises,
either oral or written, other than as expressly set forth in this Lease, with
respect to this Lease, the Premises, the Building, and/or the
Property.

       

      i) 
Relationship of
Parties.  This Lease shall not create any relationship between
the parties other than that of Landlord and Tenant.

       

      j) 
Choice of
Law.  The terms of this Lease shall be construed under the laws
of the Commonwealth of Pennsylvania, and exclusive jurisdiction and venue shall
be in the Court of Common Pleas of the County in which the Property is located
without regard to principles of choice or conflict of law.

       

      k) 
Time is of the
Essence.  Time is of the essence in all provisions of this
Lease.

       

      l) 
Attorneys
Fees.  In the event of any action or dispute between Landlord
and Tenant arising out of this Lease, the losing party shall pay the prevailing
party a reasonable sum for attorneys’ fees incurred in bringing or defending
such action and/or enforcing any judgment granted in such
action.  This provision shall override any conflicting attorney’s fees
provision in this Lease.

       

      m) 
Smoking
Policy.  No smoking shall be permitted inside any portion of
the Building or outside of the Building within twenty-five (25) feet of any
entrances and operable windows of the Building at any time; however, Landlord
will designate an outdoor smoking area for the use of Tenant in common with
other tenants and occupants of the Building, in a location determined by
Landlord in its sole discretion and in compliance with applicable
laws.  

       

      45.
Additional Definitions.

       

      a) 
“Date of this Lease” or “date of this Lease” shall mean the Effective
Date.

       

      b) 
“Landlord” as used in this Lease includes the Landlord named above as well as
its successors and assigns, each of whom shall have the same rights, remedies,
powers, authorities and privileges as it would have had it originally signed
this lease as Landlord. Any such person, whether or not named herein, shall have
no liability hereunder after ceasing to hold title to the
Property.  Neither Landlord nor any principal of Landlord nor any
owner of the Building or the Property, whether disclosed or undisclosed, shall
have any personal liability with respect to any of the provisions of this Lease,
the Premises or the Property, and if Landlord is in breach or default with
respect to Landlord’s obligations under this Lease or otherwise, Tenant shall
look solely to the equity of Landlord in the Premises and the rents, issues and
profits therefrom for the satisfaction of Tenant’s remedies.  Tenant
hereby agrees that Tenant’s remedies for default hereunder or in any way arising
in connection with this Lease including any breach of any promise or inducement
or warranty, express or implied, shall be limited to an action for direct and
proximate damages and/or for specific performance or injunctive relief provided
that Tenant has given any required notices and opportunities to
cure.

      
        
           

        

        
          44

          
            

          

        

        
           

        

      

       

      c) 
“Tenant” as used in this Lease includes the Tenant named above as well as its
heirs, successors and assigns, each of which shall be under the same
obligations, liabilities and disabilities and each of which shall have the same
rights, privileges and powers as it would have possessed had it originally
signed this Lease as Tenant.  However, no such rights, privileges or
powers shall inure to the benefit of any assignee of Tenant, immediate or
remote, unless the assignment to such assignee is permitted or has been approved
in writing by Landlord.  Any notice required or permitted by the terms
of this Lease may be given by or to any one of the persons named above as
Tenant, and shall have the same force and effect as if given by or to all of
them.

       

      d) 
“Mortgage” as used in this Lease includes any lien or encumbrance on the
Premises, the Building or the Property or on any part of or interest in or
appurtenance to any of the foregoing, including without limitation any ground
rent or ground lease if Landlord’s interest is or becomes a leasehold
estate.  The word “Mortgagee” is used herein to include the holder of
any Mortgage, including any ground Landlord if Landlord’s interest is or becomes
a leasehold estate.  Wherever any right is given to a Mortgagee, that
right may be exercised on behalf of such Mortgagee by any representative or
servicing agent of such Mortgagee.

       

      e) 
“Person” as used in this Lease includes a natural person, a partnership, a
corporation, an association, and any other form of business association or
entity.

       

      f) 
“Rent” or “rent” as used in this Lease shall mean all Fixed Basic Rent and
Additional Rent and any other rent or other sums due under this Lease reserved
under this Lease.

       

      g) 
“knowledge of the Tenant” or “best knowledge of the Tenant” and each phrase
having equivalent meaning (e.g. “known to the Tenant”) shall be conclusively
deemed to be only the conscious awareness of facts or other information of the
Chief Executive Officer or Chief Financial Officer of the Tenant, without such
persons being obligated or deemed obligated to conduct or to have conducted any
special investigation or inquiry into the affairs or business of the Tenant
except as is reasonable given their standing as an Officer of the
Tenant.  The Tenant shall not be deemed to have knowledge, actual,
constructive or otherwise, of any fact, circumstance, or occurrence known (or
deemed to be known) to any person other than as set forth in the preceding
sentence.

       

      46.
Renewal Option.  Tenant is
hereby granted two (2) options (each, a “Renewal Option”) to renew this Lease
for one (1) additional five (5) year term for each Renewal Option (each, a
“Renewal Term”) upon the following terms and conditions:

       

      a) 
At the time Tenant elects to exercise the Renewal Option and on the first day of
the Renewal Term, an event of default shall not have occurred and be continuing
(beyond all applicable cure periods) under the terms and provisions of this
Lease.

       

      b) 
Notice of Tenant’s election to exercise the Renewal Option shall be sent to
Landlord in writing at least nine (9) months but not more than twelve (12)
months before the expiration of the initial Term (in the case of the first
Renewal Option) or the first Renewal Term (in the case of the second Renewal
Option).

      
        
           

        

        
          45

          
            

          

        

        
           

        

      

       

      c) 
The first Renewal Term shall commence at the expiration of the initial Term and
the second Renewal Term shall commence at the expiration of the first Renewal
Term, and all of the terms and conditions of this Lease, other than the Fixed
Basic Rent, shall apply during the Renewal Term, provided that no abatements or
other concessions shall apply to the Renewal Term with the exception that
Landlord shall be required to provide new carpet and paint for the Premises in
conjunction with Tenant’s exercise of the first Renewal Option equivalent to the
specifications provided for in the Premises Plans; Tenant shall have no option
to renew this Lease beyond the second Renewal Term; and all leasehold
improvements within the Premises shall be provided in their then existing
condition (on an “As Is” basis) at the time the Renewal Term
commences.

       

      d) 
The annual Fixed Basic Rent to be paid during the Renewal Term shall be
ninety-five percent (95%) of the fair market value for the Premises (“Market
Rent”) determined as set forth below at the commencement of the Renewal
Term.  In determining the Market Rent, Landlord shall notify Tenant of
the Market Rent as established by Landlord.  Should Tenant dispute
Landlord’s determination of Market Rent, Tenant shall be free to, at Tenant’s
sole cost and expense, employ the services of an appraiser who is a member of
MAI and who has at least five (5) years experience in appraising office
buildings in the area in which the Premises is located who shall render an
appraisal as to Market Rent which shall be delivered to Landlord on or prior to
the date which is thirty (30) days following Tenant’s receipt of Landlord’s
notice with respect to Market Rent.  If Landlord and Tenant’s
appraiser cannot agree on Market Rent within ten (10) days of Landlord’s receipt
of Tenant’s appraiser’s appraisal, Landlord shall employ, at its sole cost and
expense, the services of an appraiser who is a member of MAI and who has at
least five (5) years experience in appraising office buildings in the area in
which the Premises is located who shall render an appraisal within thirty (30)
days.  If the two appraisers cannot agree on Market Rent within twenty
(20) days of delivery of the appraisal from Landlord’s appraiser, Landlord and
Tenant shall mutually select an independent appraiser acceptable to both who
shall be a member of MAI and who has at least five (5) years experience in
appraising office buildings in the area in which the Premises is located who
shall render an appraisal as to Market Rent.  If Landlord and Tenant
are unable to agree upon such mutually acceptable independent appraiser within
five (5) business days, either Landlord or Tenant may request the American
Arbitration Association  to appoint such independent appraiser who
shall be a member of MAI  and who has at least five (5) years
experience in appraising office buildings in the area in which the Premises is
located who shall render an appraisal as to Market Rent, and in such event the
judgment of the independent appraiser shall be final and binding upon the
parties.  The parties shall share equally in the cost of all such
independent appraisers, provided that the independent appraisers selected by
Tenant and Landlord shall be at commercially reasonable
rates.  Pending resolution of the issue of Market Rent, Tenant shall
pay Landlord as of commencement of the Renewal Term, the Market Rent as
established by Landlord, subject to retroactive adjustment upon final
determination of this issue.  In no event shall the Fixed Basic
Rent to be paid during the Renewal Term be less than that paid for the Premises
during the last year of the Term, provided that if the independent appraiser
determines that the Fixed Basic Rent during the last year of the Term is in
excess of the Market Rent, Tenant shall be permitted to withdraw its exercise of
the Renewal Option.

       

      e) 
In the event an assignee of Tenant exercises the Renewal Option(s) set forth
herein, Tenant shall remain liable under the Lease for all of the obligations of
the tenant hereunder during such Renewal Term, whether or not Tenant has
consented to or is notified of such renewal and Landlord shall have no
obligation to obtain the consent of Tenant or to notify Tenant of such
renewal.

      
        
           

        

        
          46

          
            

          

        

        
           

        

      

       

      47.
Anti-Terrorism Provisions.

       

      a)  
Tenant is not, and shall not during the Term of the Lease become, a person or
entity with whom Landlord is restricted from doing business under the Uniting
and Strengthening America by Providing Appropriate Tools Required to Intercept
and Obstruct Terrorism Act of 2001, H.R. 3162, Public Law 107-56 (commonly known
as the “USA Patriot Act”) and Executive Order Number 13224 on Terrorism
Financing, effective September 24, 2001 and regulations promulgated
pursuant thereto (collectively, “Anti-Terrorism Laws”), including without
limitation persons and entities named on the Office of Foreign Asset Control
Specially Designated Nationals and Blocked Persons List (collectively,
“Prohibited Persons”).

       

      b)  
To the best of its knowledge, Tenant is not currently engaged in any
transactions or dealings, or otherwise associated with, any Prohibited Persons
in connection with the use or occupancy of the Premises, the Building or the
Property.  Tenant will not, during the Term of this Lease, engage in
any transactions or dealings, or be otherwise associated with, any Prohibited
Persons in connection with the use or occupancy of the Premises, the Building or
the Property.

       

      c)  
Tenant’s breach of any representation or covenant set forth in this Section
shall constitute a default of this Lease by Tenant, entitling Landlord to any
and all remedies hereunder, or at law or in equity.

       

      48.ERISA.
It is
understood that from time to time during the Lease Term, Landlord may be subject
to the provisions of the Employee Retirement Income Security Act of 1974, as
amended (“ERISA”) and as a result may be prohibited by law from engaging in
certain transactions. Tenant represents and warrants after due inquiry that at
the time this Lease is entered into and at any time thereafter when its terms
are amended or modified, neither Tenant nor its “affiliates” (as defined in Part
V (c) of Prohibited Transaction Exemption 84-14 (“PTE 84-14”), as amended) has
the authority to appoint or terminate The Prudential Insurance Company of
America (“Prudential”) as an investment manager of the Prudential separate
account Western Conference of Teamsters, nor the authority to negotiate the
terms of any management agreement between Prudential and the Western Conference
of Teamsters.  Further, Tenant is not “related” to Prudential within
the meaning of Part V(h) of PTE 84-14.

      

      49.TENANT
WAIVER.  SECTION 29(b)
HEREOF SETS FORTH A WARRANT OR AUTHORITY FOR AS ATTORNEY TO CONFESS
JUDGMENT AGAINST TENANT. IN GRANTING THIS WARRANT OF ATTORNEY TO CONFESS
JUDGMENT AGAINST TENANT, TENANT HEREBY KNOWINGLY, INTENTIONALLY AND VOLUNTARILY,
AND UNCONDITIONALLY WAIVES ANY AND ALL RIGHTS TENANT HAS OR MAY HAVE TO PRIOR
NOTICE AND AN OPPORTUNITY FOR HEARING UNDER THE CONSTITUTIONS AND LAWS OF THE
UNITED STATES AND THE COMMONWEALTH OF PENNSYLVANIA. TENANT FURTHER ACKNOWLEDGES
THAT (A) LANDLORD ADVISED TENANT TO OBTAIN THE ADVICE OF COUNSEL WITH RESPECT TO
SECTION 29(b) HEREOF AND (B) TENANT IS A COMMERCIALLY SOPHISTICATED PARTY
CAPABLE OF OBTAINING SUCH COUNSEL WHO DECIDED NOT TO OBTAIN THE
SAME.

      
        
           

        

        
          47

          
            

          

        

        
           

        

      

       

      50.
Early Termination.  Tenant
shall have a one-time right to terminate this Lease with respect to the entire
Premises only (the “Termination Option”) effective as of the last day of the
sixty-fifth (65th) full calendar month of the Term (the “Accelerated Termination
Date”) if:

       

      a)  
Tenant is not in default under this Lease (beyond applicable notice and cure
periods) as of the date Tenant provides Landlord with a Termination Notice
(hereinafter defined); and

       

      b)  
This Lease has not been assigned other than to a Permitted Transferee;
and

       

      c)  
Landlord receives written notice of termination not less than six (6) months
prior to the Accelerated Termination Date (the “Termination Notice”);
and

       

      d)  
Tenant has not exercised the ROFO prior to delivery of the Termination
Notice.

       

      In the
event Tenant exercises the foregoing right to terminate, Tenant shall pay to
Landlord an amount equal to (a) the amount of unamortized broker commissions
paid by Landlord (amortized over a seven 7 year period beginning on the five (5)
month anniversary of the Commencement Date at the Interest Rate in effect on the
date of Tenant’s delivery of the Termination Notice), plus (b) the unamortized
amount of tenant improvement costs and expenses expended by Landlord pursuant to
the Work Letter (the “Work Letter Costs”) (amortized over a seven 7 year period
beginning on the five (5) month anniversary of the Commencement Date at the
Interest Rate in effect on the date of Tenant’s delivery of the Termination
Notice) ((a) and (b) collectively, the “Early Termination Fee”), as a fee in
connection with such early termination and not a penalty.  After
Landlord’s receipt of the Termination Notice, Landlord shall provide Tenant with
an invoice for the Early Termination Fee, and Tenant shall pay Landlord such
Early Termination Fee within thirty (30) days of its receipt of such invoice
from Landlord or the Termination Notice shall be deemed null and
void.  A sample calculation of the Early Termination Fee is attached
hereto as Exhibit P
for
illustrative purposes only.

       

      In the
event Landlord and Tenant enter into another lease agreement covering space in a
building owned by Landlord other than the Building covering space containing
more rentable square feet than then existing in the Premises on terms and
conditions acceptable to Landlord and Tenant in each party’s sole and absolute
discretion, and Landlord and Tenant agree to terminate this Lease in connection
with such new lease (which agreement either party may withhold in its sole and
absolute discretion), then Tenant shall not be required to pay the Termination
Fee in connection with such termination of this Lease.

       

      Within
thirty (30) days after the Commencement Date, Landlord shall provide Tenant with
a written statement of Landlord’s Work Letter Costs.

      
        
           

        

        
          48

          
            

          

        

        
           

        

      

       

      51.
Tenant’s Right of First Offer.

       

      a)  
Tenant shall have a right of first offer (“ROFO”) to lease any additional space
(“Additional Space”) on the first (1st) or
second (2nd) floor
level of the office portion of the Building at any time after Landlord has
determined that an existing tenant in the Additional Space will not extend or
renew the term of its lease or will otherwise vacate the Additional Space (but
prior to leasing such Additional Space to a party other than the existing
tenant) subject to the rights of any other tenants of the Building pursuant to
leases executed prior to the date hereof and provided that Tenant is not in
default hereunder (beyond applicable notice and cure periods) at the time a
Tenant’s ROFO arises or at the time Tenant elects to accept a proposed
ROFO.  Further, if the Additional Space has not been previously
occupied by any tenant, Landlord shall also be required to provide Tenant with a
notice of the availability of such space.  In the event such
Additional Space becomes available during the Term, Landlord shall provide
notice (“Notice of Availability”) to Tenant that such Additional Space is
available and the terms upon which Landlord is willing to lease such space to
Tenant and Tenant shall have fifteen (15) business days in order to notify
Landlord that it elects to exercise its rights hereunder and expand the Premises
to include all of the Additional Space offered.  Tenant may not
exercise a ROFO with respect to only a portion of the Additional
Space.  Except as otherwise set forth in this Section 51, the terms
offered to Tenant with respect to such Additional Space shall be the same terms
and conditions offered under this Lease except that: (i) any free rent or
reduced rent obligations provided for in this Lease shall not apply to the
Additional Space; (ii) Landlord shall provide Tenant with a build out of the
Additional Space, at Landlord’s cost and expense, similar in scope and cost to
the Space Plan and Premises Plan (each as defined in Exhibit
C of this Lease); and (iii) the Fixed Basic Rent for the Additional
Space shall be the rental rate provided in the Notice of
Availability.  Except as otherwise provided in this Section 51, the
Term of such Additional Space shall be coterminous with the Term under this
Lease.

       

      b)  
If Tenant elects not to expand into such Additional Space or fails to accept or
reject such Additional Space within the fifteen (15) business day period, then
Landlord may proceed to lease such space to any third party. However, Landlord
shall be obligated to give Tenant another opportunity to lease the Additional
Space on the same terms and conditions as such proposed third party lease
(including the term and expiration date of such third party lease) before
leasing it to a third party if: (a) Landlord intends to enter into a lease with
a third party at terms fifteen percent (15%) or less than the Fixed Basic Rent
proposed to Tenant in the applicable Notice of Availability (equitably adjusted,
if necessary, to account for the costs to build out the Additional Space in
accordance with Section 51(a)(ii) hereof) or (b) Landlord intends to enter into
a lease with a third party with overall economic terms equal to or better than
any counter-offer which Tenant may have made to Landlord in writing in response
to the applicable Notice of Availability. If Landlord is
obligated to give Tenant such additional opportunity to lease the Additional
Space, then Landlord shall give Tenant written notice thereof, and Tenant shall
have ten (10) business days from receipt of such notice to accept or reject such
opportunity or Tenant shall be deemed to have rejected such
opportunity.  If Tenant does not exercise its right to lease the
Additional Space and Landlord leases the Additional Space to a third-party
tenant, then Tenant’s ROFO with respect to the Additional Space shall lapse on
that occasion but shall be effective again if the Additional Space again becomes
available for leasing later in the Term.

       

      In any
case, if Tenant accepts the Additional Space, the parties shall promptly enter
into an amendment to this Lease reflecting the terms offered to Tenant with
respect to such Additional Space described above; provided that an otherwise
valid exercise of the ROFO shall be fully effective whether or not such
amendment is executed .  If there are two (2) years or less remaining
in the Term when Tenant exercises its right to lease the Additional Space, but
the Renewal Option has not yet been exercised, then in any event where the lease
of the Additional Space will be coterminious with the Term under this Lease,
Tenant must simultaneously exercise the Renewal Option as set forth in Section
46 hereof (and such exercise shall be permitted, even though it may come more
than twelve (12) months prior to the expiration of the initial Term); and (b) if
there are two (2) years or less remaining in the then-exercised Renewal Term
when Tenant exercises its right to lease the Additional Space, then Tenant shall
be required to extend the then-current Term of this Lease so that this Lease
will remain in force for at least five (5) years following the date of Tenant’s
leasing of the Additional Space.  Landlord will have no liability to
Tenant if any tenant of the Additional Space wrongfully holds
over.  In the event such tenant wrongfully holds over, Landlord will
attempt in good faith to cause such tenant to vacate the Additional
Space.

      
        
           

        

        
          49

          
            

          

        

        
           

        

      

       

      [Remainder
of Page Intentionally Left Blank]

      
        
           

        

        
          50

          
            

          

        

        
           

        

      

       

      IN WITNESS WHEREOF, and in
consideration of the mutual entry into this Lease and for other good and
valuable consideration, and intending to be legally bound, each party hereto has
caused this agreement to be duly executed under seal.

       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	 
      	
                                      Landlord:

                                    
	 
      	 
      
	 
      	
                                      HORIZON OFFICE DEVELOPMENT I,
      L.P.

                                    
	 
      	 
      
	 
      	
                                      By:

                                    	
                                      HORIZON
      WCOT LLC, a Delaware limited 

                                      liability
      company, its General Partner

                                    
	 
      	 
      	 
      
	 
      	 
      	
                                      By:

                                    	
                                      The
      Prudential Insurance Company of 

                                      America,
      its sole member

                                    
	 
      	 
      	 
      	 
      
	
                                      Date
      signed: March 24, 2010

                                    	 
      	
                                      By: 

                                    	
                                      /s/ Daniel McKeever

                                    
	 
      	 
      	 
      	
                                      Name:  Daniel
      McKeever

                                    
	 
      	 
      	 
      	
                                      Title:
      Vice President

                                    
	 
      	 
      	 
      	 
      
	 
      	
                                      Tenant:

                                    
	 
      	 
      
	 
      	
                                      WORLDGATE SERVICE, INC.,
      a Delaware

                                      corporation

                                    
	 
      	 
      
	
                                      Date
      signed: March 24, 2010

                                    	
                                      By:

                                    	
                                      /s/ Christopher V.
Vitale

                                    
	 
      	
                                      Name: 

                                    	
                                      Christopher V. Vitale

                                    
	
                                       

                                    	
                                      Title:

                                    	
                                      SVP, General Counsel and
      Secretary

                                    

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

      
        
           

        

        
          51Exhibit
10.5.1

    NON-QUALIFIED
STOCK OPTION AGREEMENT

    

    INTERLEUKIN
GENETICS, INC.

    

    AGREEMENT
made as of the __ day of _________ 200_, between Interleukin Genetics, Inc. (the
“Company”), a Delaware corporation having a principal place of business in
_________, _____________, and _______________ of ___________ (the
“Participant”).

    

    WHEREAS,
the Company desires to grant to the Participant an Option to purchase shares of
its common stock, $.001 par value per share (the “Shares”), under and for the
purposes set forth in the Company’s 2004 Employee, Director and Consultant Stock
Plan (the “Plan”);

    

    WHEREAS,
the Company and the Participant understand and agree that any terms used and not
defined herein have the same meanings as in the Plan; and

    

    WHEREAS,
the Company and the Participant each intend that the Option granted herein shall
be a Non-Qualified Option.

    

    NOW,
THEREFORE, in consideration of the mutual covenants hereinafter set forth and
for other good and valuable consideration, the parties hereto agree as
follows:

    

    
      	
               
      

            	
              1.

            	
              GRANT OF
      OPTION.

            

    

    

    The
Company hereby grants to the Participant the right and option to purchase all or
any part of an aggregate of _______________ Shares, on the terms and conditions
and subject to all the limitations set forth herein, under United States
securities and tax laws, and in the Plan, which is incorporated herein by
reference.  The Participant acknowledges receipt of a copy of the
Plan.

    

    
      	
               
      

            	
              2.

            	
              PURCHASE
      PRICE.

            

    

    

    The
purchase price of the Shares covered by the Option shall be $_____ per Share,
subject to adjustment, as provided in the Plan, in the event of a stock split,
reverse stock split or other events affecting the holders of Shares (the
“Purchase Price”).  Payment shall be made in accordance with Paragraph
8 of the Plan.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              3.

            	
              EXERCISABILITY OF
      OPTION.

            

    

    

    Subject
to the terms and conditions set forth in this Agreement and the Plan, the Option
granted hereby shall become exercisable as follows:

    

    
      	
              On
      the first anniversary of the date of this Agreement

               

            	 
      	
              up
      to ____________ Shares

            
	
              On
      the second anniversary of the date of this Agreement

               

            	 
      	
              an
      additional __________ Shares

            
	
              On
      the third anniversary of the date of this Agreement

               

            	 
      	
              an
      additional __________ Shares

            
	
              On
      the fourth anniversary of the date of this Agreement

            	 
      	
              an
      additional __________ Shares

            

    

    

    The
foregoing rights are cumulative and are subject to the other terms and
conditions of this Agreement and the Plan.

    

    
      	
               
      

            	
              4.

            	
              TERM OF
      OPTION.

            

    

    

    This
Option shall terminate ten years from the date of this Agreement, but shall be
subject to earlier termination as provided herein or in the Plan.

    

    If the
Participant ceases to be an employee, director or consultant of the Company or
of an Affiliate (for any reason other than the death or Disability of the
Participant or termination of the Participant for “cause” (as defined in the
Plan)), the Option may be exercised, if it has not previously terminated, within
three months after the date the Participant ceases to be an employee, director
or consultant of the Company or an Affiliate, or within the originally
prescribed term of the Option, whichever is earlier, but may not be exercised
thereafter.  In such event, the Option shall be exercisable only to
the extent that the Option has become exercisable and is in effect at the date
of such cessation of employment, directorship or consultancy.

    

    Notwithstanding
the foregoing, in the event of the Participant’s Disability or death within
three months after the termination of employment, directorship or consultancy,
the Participant or the Participant’s Survivors may exercise the Option within
one year after the date of the Participant’s termination of employment,
directorship or consultancy, but in no event after the date of expiration of the
term of the Option.

    

    In the
event the Participant’s employment, directorship or consultancy is terminated by
the Company or an Affiliate for “cause” (as defined in the Plan), the
Participant’s right to exercise any unexercised portion of this Option shall
cease immediately as of the time the Participant is notified his or her
employment, directorship or consultancy is terminated for “cause,” and this
Option shall thereupon terminate.  Notwithstanding anything herein to
the contrary, if subsequent to the Participant’s termination, but prior to the
exercise of the Option, the Board of Directors of the Company determines that,
either prior or subsequent to the Participant’s termination, the Participant
engaged in conduct which would constitute “cause,” then the Participant shall
immediately cease to have any right to exercise the Option and this Option shall
thereupon terminate.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    In the
event of the Disability of the Participant, as determined in accordance with the
Plan, the Option shall be exercisable within one year after the Participant’s
termination of service or, if earlier, within the term originally prescribed by
the Option.  In such event, the Option shall be
exercisable:

    

    
      	
               
      

            	
              (a)

            	
              to
      the extent that the Option has become exercisable but has not been
      exercised as of the date of Disability;
and

            

    

    

    
      	
               
      

            	
              (b)

            	
              in
      the event rights to exercise the Option accrue periodically, to the extent
      of a pro rata portion through the date of Disability of any additional
      vesting rights that would have accrued on the next vesting date had the
      Participant not become Disabled.  The proration shall be based
      upon the number of days accrued in the current vesting period prior to the
      date of Disability.

            

    

    

    In the
event of the death of the Participant while an employee, director or consultant
of the Company or of an Affiliate, the Option shall be exercisable by the
Participant’s Survivors within one year after the date of death of the
Participant or, if earlier, within the originally prescribed term of the
Option.  In such event, the Option shall be exercisable:

    

    
      	
               
      

            	
              (x)

            	
              to
      the extent that the Option has become exercisable but has not been
      exercised as of the date of death;
and

            

    

    

    
      	
               
      

            	
              (y)

            	
              in
      the event rights to exercise the Option accrue periodically, to the extent
      of a pro rata portion through the date of death of any additional vesting
      rights that would have accrued on the next vesting date had the
      Participant not died.  The proration shall be based upon the
      number of days accrued in the current vesting period prior to the
      Participant’s date of death.

            

    

    

    
      	
               
      

            	
              5.

            	
              METHOD OF EXERCISING
      OPTION.

            

    

    

    Subject
to the terms and conditions of this Agreement, the Option may be exercised by
written notice to the Company or its designee, in substantially the form of
Exhibit A
attached hereto.  Such notice shall state the number of Shares with
respect to which the Option is being exercised and shall be signed by the person
exercising the Option.  Payment of the purchase price for such Shares
shall be made in accordance with Paragraph 8 of the Plan.  The Company
shall deliver such Shares as soon as practicable after the notice shall be
received, provided, however, that the Company may delay issuance of such Shares
until completion of any action or obtaining of any consent, which the Company
deems necessary under any applicable law (including, without limitation, state
securities or “blue sky” laws).  The Shares as to which the Option
shall have been so exercised shall be registered in the name of the person so
exercising the Option (or, if the Option shall be exercised by the Participant
and if the Participant shall so request in the notice exercising the Option,
shall be registered in the Company’s share register in the name of the
Participant and another person jointly, with right of survivorship) and shall be
delivered as provided above to or upon the written order of the person
exercising the Option.  In the event the Option shall be exercised,
pursuant to Section 4 hereof, by any person other than the Participant, such
notice shall be accompanied by appropriate proof of the right of such person to
exercise the Option.  All Shares that shall be purchased upon the
exercise of the Option as provided herein shall be fully paid and
nonassessable.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              6.

            	
              PARTIAL
      EXERCISE.

            

    

    

    Exercise
of this Option to the extent above stated may be made in part at any time and
from time to time within the above limits, except that no fractional share shall
be issued pursuant to this Option.

    

    
      	
               
      

            	
              7.

            	
              NON-ASSIGNABILITY.

            

    

    

    The
Option shall not be transferable by the Participant otherwise than by will or by
the laws of descent and distribution or pursuant to a qualified domestic
relations order as defined by the Code or Title I of the Employee Retirement
Income Security Act or the rules thereunder.  Except as provided in
the previous sentence, the Option shall be exercisable, during the Participant’s
lifetime, only by the Participant (or, in the event of legal incapacity or
incompetency, by the Participant’s guardian or representative) and shall not be
assigned, pledged or hypothecated in any way (whether by operation of law or
otherwise) and shall not be subject to execution, attachment or similar
process.  Any attempted transfer, assignment, pledge, hypothecation or
other disposition of the Option or of any rights granted hereunder contrary to
the provisions of this Section 7, or the levy of any attachment or similar
process upon the Option shall be null and void.

    

    
      	
               
      

            	
              8.

            	
              NO RIGHTS AS
      STOCKHOLDER UNTIL EXERCISE.

            

    

    

    The
Participant shall have no rights as a stockholder with respect to Shares subject
to this Agreement until registration of the Shares in the Company’s share
register in the name of the Participant.  Except as is expressly
provided in the Plan with respect to certain changes in the capitalization of
the Company, no adjustment shall be made for dividends or similar rights for
which the record date is prior to the date of such registration.

    

    
      	
               
      

            	
              9.

            	
              ADJUSTMENTS.

            

    

    

    The Plan
contains provisions covering the treatment of Options in a number of
contingencies such as stock splits and mergers.  Provisions in the
Plan for adjustment with respect to stock subject to Options and the related
provisions with respect to successors to the business of the Company are hereby
made applicable hereunder and are incorporated herein by reference.

    

    
      	
               
      

            	
              10.

            	
              TAXES.

            

    

    

    The
Participant acknowledges that upon exercise of the Option the Participant will
be deemed to have taxable income measured by the difference between the then
fair market value of the Shares received upon exercise and the price paid for
such Shares pursuant to this Agreement.  The Participant acknowledges
that any income or other taxes due from him or her with respect to this Option
or the Shares issuable pursuant to this Option shall be the Participant’s
responsibility.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    The
Participant agrees that the Company may withhold from the Participant’s
remuneration, if any, the minimum statutory amount of federal, state and local
withholding taxes attributable to such amount that is considered compensation
includable in such person’s gross income.  At the Company’s
discretion, the amount required to be withheld may be withheld in cash from such
remuneration, or in kind from the Shares otherwise deliverable to the
Participant on exercise of the Option.  The Participant further agrees
that, if the Company does not withhold an amount from the Participant’s
remuneration sufficient to satisfy the Company’s income tax withholding
obligation, the Participant will reimburse the Company on demand, in cash, for
the amount under-withheld.

    

    
      	
               
      

            	
              11.

            	
              PURCHASE FOR
      INVESTMENT.

            

    

    

    Unless
the offering and sale of the Shares to be issued upon the particular exercise of
the Option shall have been effectively registered under the Securities Act of
1933, as now in force or hereafter amended (the “1933 Act”), the Company shall
be under no obligation to issue the Shares covered by such exercise unless and
until the following conditions have been fulfilled:

    

    
      	
               
      

            	
              (a)

            	
              The
      person(s) who exercise the Option shall warrant to the Company, at the
      time of such exercise, that such person(s) are acquiring such Shares for
      their own respective accounts, for investment, and not with a view to, or
      for sale in connection with, the distribution of any such Shares, in which
      event the person(s) acquiring such Shares shall be bound by the provisions
      of the following legend which shall be endorsed upon the certificate(s)
      evidencing the Shares issued pursuant to such
  exercise:

            

    

    

    “The
shares represented by this certificate have been taken for investment and they
may not be sold or otherwise transferred by any person, including a pledgee,
unless (1) either (a) a Registration Statement with respect to such shares shall
be effective under the Securities Act of 1933, as amended, or (b) the Company
shall have received an opinion of counsel satisfactory to it that an exemption
from registration under such Act is then available, and (2) there shall have
been compliance with all applicable state securities laws;” and

    

    
      	
               
      

            	
              (b)

            	
              If
      the Company so requires, the Company shall have received an opinion of its
      counsel that the Shares may be issued upon such particular exercise in
      compliance with the 1933 Act without registration
      thereunder.  Without limiting the generality of the foregoing,
      the Company may delay issuance of the Shares until completion of any
      action or obtaining of any consent, which the Company deems necessary
      under any applicable law (including without limitation state securities or
      “blue sky” laws).

            

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              12.

            	
              RESTRICTIONS ON
      TRANSFER OF SHARES.

            

    

    

    12.1        If,
in connection with a registration statement filed by the Company pursuant to the
Securities Act, the Company or its underwriter so requests, the Participant will
agree not to sell any Shares for a period not to exceed 180 days following the
effectiveness of such registration.

    

    12.2        The
Participant acknowledges and agrees that neither the Company, its shareholders
nor its directors and officers, has any duty or obligation to disclose to the
Participant any material information regarding the business of the Company or
affecting the value of the Shares before, at the time of, or following a
termination of the employment of the Participant by the Company, including,
without limitation, any information concerning plans for the Company to make a
public offering of its securities or to be acquired by or merged with or into
another firm or entity.

    

    
      	
               
      

            	
              13.

            	
              NO OBLIGATION TO
      MAINTAIN RELATIONSHIP.

            

    

    

    The
Company is not by the Plan or this Option obligated to continue the Participant
as an employee, director or consultant of the Company or an
Affiliate.  The Participant acknowledges:  (i) that the Plan
is discretionary in nature and may be suspended or terminated by the Company at
any time; (ii) that the grant of the Option is a one-time benefit which does not
create any contractual or other right to receive future grants of options, or
benefits in lieu of options; (iii) that all determinations with respect to any
such future grants, including, but not limited to, the times when options shall
be granted, the number of shares subject to each option, the option price, and
the time or times when each option shall be exercisable, will be at the sole
discretion of the Company; (iv) that the Participant’s participation in the Plan
is voluntary; (v) that the value of the Option is an extraordinary item of
compensation which is outside the scope of the Participant’s employment
contract, if any; and (vi) that the Option is not part of normal or expected
compensation for purposes of calculating any severance, resignation, redundancy,
end of service payments, bonuses, long-service awards, pension or retirement
benefits or similar payments.

    

    
      	
               
      

            	
              14.

            	
              NOTICES.

            

    

    

    Any
notices required or permitted by the terms of this Agreement or the Plan shall
be given by recognized courier service, facsimile, registered or certified mail,
return receipt requested, addressed as follows:

    

    If to the
Company:

    
      
        
          
            
              
                
                  
                    
                      
                        	 	
                                Interleukin
      Genetics, Inc.

                              
	 	
                                135
      Beaver Street

                              
	 	
                                Waltham,
      MA 02454

                              
	 	
                                Attention:
      Chief Financial
Officer

                              

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

    If to the
Participant:

    
      
        
          
            
              	 	
                       

                    
	 	
                       

                    
	 	
                       

                    

            

          

        

      

    

    

    or to
such other address or addresses of which notice in the same manner has
previously been given.  Any such notice shall be deemed to have been
given upon the earlier of receipt, one business day following delivery to a
recognized courier service or three business days following mailing by
registered or certified mail.

    

    
      	
               
      

            	
              15.

            	
              GOVERNING
      LAW.

            

    

    

    This
Agreement shall be construed and enforced in accordance with the law of the
State of Delaware,
without giving effect to the conflict of law principles thereof.  For
the purpose of litigating any dispute that arises under this Agreement, the
parties hereby consent to exclusive jurisdiction in Massachusetts and agree that
such litigation shall be conducted in the courts of Suffolk County,
Massachusetts or the federal courts of the United States for the District of
Massachusetts.

    

    
      	
               
      

            	
              16.

            	
              BENEFIT OF
      AGREEMENT.

            

    

    

    Subject
to the provisions of the Plan and the other provisions hereof, this Agreement
shall be for the benefit of and shall be binding upon the heirs, executors,
administrators, successors and assigns of the parties hereto.

    

    
      	
               
      

            	
              17.

            	
              ENTIRE
      AGREEMENT.

            

    

    

    This
Agreement, together with the Plan, embodies the entire agreement and
understanding between the parties hereto with respect to the subject matter
hereof and supersedes all prior oral or written agreements and understandings
relating to the subject matter hereof.  No statement, representation,
warranty, covenant or agreement not expressly set forth in this Agreement shall
affect or be used to interpret, change or restrict, the express terms and
provisions of this Agreement, provided, however, in any event, this Agreement
shall be subject to and governed by the Plan.

    

    
      	
               
      

            	
              18.

            	
              MODIFICATIONS AND
      AMENDMENTS.

            

    

    

    The terms
and provisions of this Agreement may be modified or amended as provided in the
Plan.

    

    
      	
               
      

            	
              19.

            	
              WAIVERS AND
      CONSENTS.

            

    

    

    Except as
provided in the Plan, the terms and provisions of this Agreement may be waived,
or consent for the departure therefrom granted, only by written document
executed by the party entitled to the benefits of such terms or
provisions.  No such waiver or consent shall be deemed to be or shall
constitute a waiver or consent with respect to any other terms or provisions of
this Agreement, whether or not similar.  Each such waiver or consent
shall be effective only in the specific instance and for the purpose for which
it was given, and shall not constitute a continuing waiver or
consent.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    20.           DATA
PRIVACY.

    

    By
entering into this Agreement, the Participant:  (i) authorizes the
Company and each Affiliate, and any agent of the Company or any Affiliate
administering the Plan or providing Plan recordkeeping services, to disclose to
the Company or any of its Affiliates such information and data as the Company or
any such Affiliate shall request in order to facilitate the grant of options and
the administration of the Plan; (ii) waives any data privacy rights he or she
may have with respect to such information; and (iii) authorizes the Company and
each Affiliate to store and transmit such information in electronic
form.

     

    [Remainder
of Page Intentionally Left Blank]

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    IN
WITNESS WHEREOF, the Company has caused this Agreement to be executed by its
duly authorized officer, and the Participant has hereunto set his or her hand,
all as of the day and year first above written.

     

    
      
        
          
            
              
                
                  	 
      	
                          INTERLEUKIN
      GENETICS, INC.

                        
	 
      	 
      	 
      
	 
      	
                          By:

                        	 
      
	 
      	 
      	
                          Name

                        
	 
      	 
      	
                          Title

                        
	 
      	 
      	 
      
	 
      	 
      
	 
      	
                          Participant

                        

                

              

            

          

        

      

    

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    Exhibit
A

    

    NOTICE OF
EXERCISE OF NON-QUALIFIED STOCK OPTION

    

    TO:         Interleukin
Genetics, Inc.

    

    IMPORTANT
NOTICE:  This form of Notice of Exercise may only be used at such time
as the Company has filed a Registration Statement with the Securities and
Exchange Commission under which the issuance of the Shares for which this
exercise is being made is registered and such Registration Statement remains
effective.

    

    Ladies
and Gentlemen:

    

    I hereby
exercise my Non-Qualified Stock Option to purchase _________ shares (the
“Shares”) of the common stock, $.001 par value, of Interleukin Genetics,
Inc. (the
“Company”), at the exercise price of $________ per share, pursuant to and
subject to the terms of that certain Non-Qualified Stock Option Agreement
between the undersigned and the Company dated _______________,
200_.

    

    I
understand the nature of the investment I am making and the financial risks
thereof.  I am aware that it is my responsibility to have consulted
with competent tax and legal advisors about the relevant national, state and
local income tax and securities laws affecting the exercise of the Option and
the purchase and subsequent sale of the Shares.

    

    I am
paying the option exercise price for the Shares as follows:

     

    
      
         

        
          

        

      

    

    

    Please
issue the Shares (check one):

    

     ̈ to me;
or

    

    
       ̈ to me
and ____________________________, as joint tenants with right of
survivorship,

    

    

    at the following address:

     

    
      

      

      
 

    
      
         

      

      
        A-1

        
          

        

      

      
         

      

    

    

    My mailing address for shareholder
communications, if different from the address listed above, is:

     

    
      
        

      

      
        

      

      
        

      

    

    

    
      
        
          
            
              
                	 
      	
                        Very
      truly yours,

                      
	 
      	 
      
	 
      	 
      
	 
      	
                        Participant
      (signature)

                      
	 
      	 
      
	 
      	 
      
	 
      	
                        Print
      Name

                      
	 
      	 
      
	 
      	 
      
	 
      	
                        Date

                      
	 
      	 
      
	 
      	 
      
	 
      	
                        Social
      Security
Number

                      

              

            

          

        

      

    

     

    
      
         

      

      
        A-2

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