Document:

Exhibit 10.33

 

INDEMNIFICATION
AGREEMENT

 

This Agreement is made
and entered into as of
                         
            ,
                  
(the “Agreement”), by and between World Heart Corporation, a corporation
continued under the laws of Canada (the “Company”, which term shall include any
one or more of its subsidiaries where appropriate), and
                          
               
             (“Indemnitee”).  Certain capitalized terms are used in this
Agreement as specifically defined in Section 7.

 

WHEREAS,
the Company and Indemnitee recognize the substantial increase in corporate
litigation in general, subjecting directors and executive officers to expensive
litigation risks;

 

WHEREAS,
the Company desires to attract and retain the services of highly qualified
individuals, such as Indemnitee, to serve as directors and executive officers
of the Company and to indemnify its directors and executive officers so as to
provide them with the maximum  protection  permitted under applicable law and the Company’s Articles
of Continuance and By-Laws, each as amended; and

 

WHEREAS,
in view of such considerations, the Company desires to provide, independent
from the indemnification to which Indemnitee is otherwise entitled by law and
under the Company’s Articles of Continuance and By-Laws, each as amended,
indemnification to Indemnitee and advances of expenses, all as set forth in
this Agreement.

 

NOW, THEREFORE,
to induce Indemnitee to serve the Company and in consideration of these
premises and the mutual agreements set forth in this Agreement, as well as
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Company and Indemnitee hereby agree as follows:

 

1.                                       Services
by Indemnitee.  Indemnitee agrees to
serve or continue to serve as a director or executive officer of the Company
for so long as Indemnitee is duly elected or appointed or until Indemnitee’s
written resignation; provided, however, that nothing contained in this
Agreement is intended as an employment agreement between Indemnitee and the
Company or any of subsidiaries or to create any right to continued employment
of Indemnitee with the Company or any of its subsidiaries in any capacity.

 

2.                                       Indemnification
and Advances.

 

2.1                                 The
Company shall advance all Expenses actually and reasonably incurred by or on
behalf of Indemnitee in connection with any Proceeding within fifteen business
days after the receipt by the Company of a written request therefor,
accompanied or preceded by reasonably detailed evidence of such Expenses.  Such written request shall include an
undertaking, substantially in the form attached hereto as Exhibit A,
by or on behalf of Indemnitee to repay all Expenses advanced to the extent
Indemnitee shall be finally adjudicated, or determined pursuant to Section 3.1,
3.2 or 3.3, to be not entitled to indemnification therefor.  The undertaking as described above shall be
unsecured, bear no interest and be accepted by the Company without reference to
Indemnitee’s financial ability to repay any such advances.  Advances shall include any and all Expenses
actually and reasonably incurred by Indemnitee pursuing an action to enforce
Indemnitee’s

 

 

right to indemnification
under this Agreement, or otherwise, including Expenses incurred preparing and
forwarding statements to the Company to support the advances claimed. Repayment
shall not be required until after it is ultimately determined by a court of
competent jurisdiction in a final judgment, not subject to appeal, that
Indemnitee is not entitled to be indemnified by the Company.

 

2.2                                 Except
as specifically provided in Sections 3.1, 3.2 and 3.3, within 60 calendar days
after receipt of a request for indemnification from Indemnitee the Company
shall indemnify Indemnitee to the fullest extent permitted by law against all
Expenses, judgments, penalties, fines and amounts paid in settlement actually
and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection
with any Proceeding or any claim, issue or matter therein.  A request for indemnification must be
accompanied by reasonable evidence of the basis of the amount for which
indemnification is requested, and must indicate a choice of Independent
Counsel, if any, to make any determination pursuant to Section 3.3.

 

2.3                                 Notwithstanding
any other provision of this Agreement, Indemnitee shall be indemnified against
all Expenses actually and reasonably incurred by Indemnitee in connection with
any Proceeding (or any claim, issue or matter relating thereto) which was
adjudicated or determined by a court of competent jurisdiction, on the merits
or otherwise, in Indemnitee’s favor or which was terminated by dismissal or
withdrawal, with or without prejudice. 
Without limiting the generality of the foregoing, if any Proceeding is
disposed of, on the merits, by settlement (with or without court approval) or
otherwise (including a disposition without prejudice), without (i) the
disposition being adverse to Indemnitee, (ii) an adjudication that
Indemnitee was liable to the Company, (iii) a plea of guilty by
Indemnitee, (iv) an adjudication that Indemnitee did not act in good faith
and in a manner Indemnitee reasonably believed to be in or not opposed to the
best interests of the Company, or (v) with respect to any criminal action
or proceeding, an adjudication that Indemnitee had reasonable cause to believe
Indemnitee’s conduct was unlawful, then the Proceeding shall be considered for
the purpose of this Agreement to have been resolved in Indemnitee’s favor.  For purposes of this Agreement, the termination
of any Proceeding by settlement or upon a plea of nolo contendere,
or its equivalent, shall not, of itself, create a presumption that Indemnitee
did not meet any particular standard of conduct or have any particular belief
or that a court has determined that indemnification is not permitted by
applicable law.

 

2.4                                 If
Indemnitee is entitled under any provision of this Agreement to indemnification
by the Company for some or a portion of the Expenses, judgments, penalties,
fines or amounts paid in settlement actually and reasonably incurred by him or
on his behalf in connection with any Proceeding or any claim, issue or matter
therein, but not, however, for the total amount thereof, the Company shall
nevertheless indemnify Indemnitee for the portion of such Expenses, judgments,
penalties, fines or amounts paid in settlement to which the Company reasonably
believes the Indemnitee is entitled.

 

2.5                                 Indemnitee
must notify the Company in writing as soon as practicable of any Proceeding for
which indemnity will or could be sought by him and provide the Company with a
copy of any summons, citation, subpoena, information or other document relating
to such Proceeding with which Indemnitee is served. In the event the Company
shall be obligated to pay Expenses of Indemnitee in connection with any
Proceeding, the Company shall have the right in its sole discretion to assume
the defense of such Proceeding, or to participate to the extent permissible

 

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in such Proceeding, with
counsel approved by Indemnitee, which approval shall not be unreasonably
withheld or delayed, upon the delivery to Indemnitee of written notice of its
election to do so.  Notwithstanding the
foregoing, the Company shall not be permitted to settle any Proceeding on
behalf of Indemnitee in any manner which would impose any unindemnified
liability or penalty on Indemnitee or require any acknowledgment of wrongdoing
on the part of Indemnitee without Indemnitee’s written consent. The Company
shall not be required to indemnify Indemnitee for any amounts paid in
settlement of any Proceeding effected without its written consent (which
consent shall not be unreasonably withheld or delayed; provided, however, that
the Company may in any event decline to consent to (or to otherwise admit or
agree to any liability for indemnification hereunder in respect of) any
proposed settlement if the Company is also a party in such proceeding and
determines in good faith that such settlement is not in the best interests of
the Company and its shareholders.). 
After delivery of such notice, approval of such counsel by Indemnitee
and the retention of such counsel by the Company, the Company will not be
liable to Indemnitee under this Agreement for any other fees of counsel subsequently
incurred by Indemnitee with respect to the same Proceeding, provided that (i) Indemnitee
shall have the right to employ his own counsel in any such Proceeding at
Indemnitee’s own expense; and (ii) if (A) the employment of separate
counsel by Indemnitee has been previously authorized in writing by the Company,
or (B) Indemnitee shall have reasonably concluded based on the advice of
legal counsel that there is an actual conflict of interest between the Company
and Indemnitee in the conduct of any such defense, or (C) the Company
shall not, in fact, have employed counsel to assume the defense of such
Proceeding, then the fees of Indemnitee’s counsel shall be at the expense of
the Company.  The Company shall not be
entitled, without the consent of Indemnitee (which consent shall not be
unreasonably withheld or delayed), to assume the defense of any claim brought
by or in the right of the Company or as to which counsel for Indemnitee shall
have reasonably made the conclusion provided for in clause (ii)(B) above.

 

2.6                                 Notwithstanding
any other provision of this Agreement, to the extent that Indemnitee has been
successful on the merits or otherwise in defense of any Proceeding or in
defense of any claim, issue or matter therein, including the dismissal of any
action without prejudice, the Company shall indemnify Indemnitee against all
Expenses actually and reasonably incurred in connection with the investigation,
defense or appeal of such Proceeding.

 

3.                                       Exceptions.

 

3.1                                 No
indemnification shall be provided with respect to the following:  (a) remuneration paid to Indemnitee if
it is determined by final judgment or other final adjudication that such
remuneration was in violation of law; (b) any Proceeding to the extent
that Indemnitee has been finally adjudicated (i) not to have acted
honestly or in good faith and in the reasonable belief that Indemnitee’s action
or inaction was in the best interests of the Company (or, in the case of
service with respect to an employee benefit plan, in the best interests of the
participants or beneficiaries of such employee benefit plan) or (ii) in
the case of a criminal or administrative action or proceeding that is enforced
by a monetary penalty, not to have had reasonable grounds for believing that
the Indemnitee’s conduct was lawful; (c) any of Indemnitee’s Expenses or
liabilities to the extent that such Expenses or liabilities have been actually
paid by an insurance carrier under a policy of insurance; (d) the payment
of profits inuring to and recoverable by the Company pursuant to Section 16(b) of
the Securities and Exchange Act of 1934, as amended, or any similar successor
statute or other provisions of any Canadian or U.S. federal, state or local
statute or rules and regulations

 

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thereunder, and any
Expenses incurred with respect thereto; (e) any Proceeding initiated or
brought voluntarily by Indemnitee and not by way of defense, counterclaim or
crossclaim, except (i) with respect to a Proceeding brought to establish
or enforce a right to indemnification under this Agreement (unless otherwise
prohibited by this Agreement) or under any other agreement or applicable law,
or (ii) in specific cases where the Board of Directors has approved the
initiation or bringing of such Proceeding; (f) any Proceeding in which
Indemnitee has been finally adjudicated to have committed fraud; or (g) any
Proceeding in which it has been finally adjudicated that Indemnitee may not be
relieved of liability under applicable law or public policy for Indemnitee’s
acts, errors, omissions or transactions.

 

3.2                                 If
a Change of Control has not occurred since the date hereof, no indemnification
shall be provided under this Agreement to the extent that, within 60 calendar
days of the receipt by the Company of a request for indemnification, Indemnitee
has been determined (after investigation) by:

 

(a) the Board of
Directors of the Company by majority vote of a quorum of Disinterested
Directors; or

 

(b) if such a
quorum is not obtainable, or if directed by majority vote of a quorum of
Disinterested Directors, Independent Counsel (selected by majority vote of the
Disinterested Directors or, if none, by majority vote of the Board of
Directors) in a written opinion,

 

not
to be entitled to such indemnification pursuant to any of the exceptions set
forth in Section 3.1 above.

 

3.3                                 If
a Change in Control has occurred since the date hereof, no indemnification
shall be provided under this Agreement to the extent that, within 60 calendar
days of the receipt by the Company of a request for indemnification, Indemnitee
has been determined (after investigation) by:

 

(a) the Independent
Counsel specified by Indemnitee in the request for indemnification and approved
by the Company (such approval not to be unreasonably withheld); or

 

(b) if the
Indemnitee makes no such specification, by a person, persons or entity who
would be entitled to make such a determination pursuant to Section 3.2 if
a Change in Control had not occurred,

 

not to be entitled
to such indemnification pursuant to any of the exceptions set forth in Section 3.1
above.  A person, persons or entity
making a determination pursuant to this Section 3.3 shall presume that
Indemnitee acted so as to be entitled to indemnification, and the Company shall
have the burden of proof in overcoming that presumption.

 

3.4                                 Indemnitee
shall cooperate with any person, persons or entity making an investigation
pursuant to Sections 3.2 or 3.3 to the extent reasonably requested.  Any costs or expenses (including attorney’s
fees and disbursements) incurred by Indemnitee in so cooperating shall be borne
by the Company (irrespective of the determination as to Indemnitee’s
entitlement to

 

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indemnification), and the
Company hereby agrees to indemnify and agrees to hold Indemnitee harmless
therefrom.

 

3.5                                 For
purposes of any determination of good faith, Indemnitee shall be deemed to have
acted in good faith if Indemnitee’s action is based on the records or books of
account of the Company or relevant Subsidiary, including financial statements,
or on information supplied to Indemnitee by the officers of the Company or
relevant Subsidiary in the course of their duties, or on the advice of legal
counsel for the Company or relevant Subsidiary, by an independent certified
public accountant or by an appraiser or other expert selected with reasonable
care by the Company or relevant Subsidiary. 
The knowledge and actions, or failure to act, of any other director, officer,
agent or employee of the Company or any of its Subsidiaries shall not be
imputed to Indemnitee for purposes of determining the right to indemnification
under this Agreement.  The provisions of
this Section 3.5 shall not be deemed to be exclusive or to limit in any
way the other circumstance in which the Indemnitee may be deemed to have meet
the applicable standard of conduct set forth in this Agreement.

 

3.6                                 Any
provision herein to the contrary notwithstanding, the Company shall not be
obligated pursuant to the terms of this Agreement to indemnify Indemnitee or
otherwise act in violation of any undertaking appearing in and required by the rules and
regulations promulgated under the Securities Act of 1933, as amended (the “Act”),
or in any registration statement filed with the U.S. Securities and Exchange
Commission (the “SEC”) under the Act. 
Indemnitee acknowledges that paragraph (h) of Item 512 of
Regulation S-K currently generally requires the Company to undertake in
connection with any registration statement filed under the Act to submit the
issue of the enforceability of Indemnitee’s rights under this Agreement in
connection with any liability under the Act on public policy grounds to a court
of appropriate jurisdiction and to be governed by any final adjudication of
such issue.  Indemnitee specifically
agrees that any such undertaking shall supersede the provisions of this
Agreement and to be bound by any such undertaking.

 

4.                                       Remedies
of Indemnitee.

 

4.1                                 In
the event that (i) a determination is made that Indemnitee is not entitled
to indemnification under this Agreement, (ii) a required advancement of
Expenses is not timely made, or (iii) payment of any required
indemnification is not timely made as prescribed in Section 2.2,
Indemnitee shall be entitled to an adjudication in an appropriate court of the
Province of Ontario of Indemnitee’s entitlement to such indemnification or
advancement of Expenses.  Alternatively,
Indemnitee, at Indemnitee’s option, may seek an award in arbitration to be
conducted in Salt Lake City, Utah by a single arbitrator pursuant to the
commercial rules of the American Arbitration Association, and judgment
upon any arbitration award may be entered in an appropriate court of the
Province of Ontario.  Indemnitee shall
commence a proceeding seeking such an adjudication or an award in arbitration
within 180 calendar days following the date on which Indemnitee first has the
right to commence such proceeding.  The
Company shall not oppose Indemnitee’s right to seek any such adjudication or
award in arbitration.

 

4.2                                 In
the event that a determination shall have been made pursuant to this Agreement
that Indemnitee is not entitled to indemnification, any judicial proceeding or
arbitration

 

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pursuant to Section 4.1
shall be conducted in all respects as a de novo trial, or
arbitration, on the merits and Indemnitee shall not be prejudiced by reason of
such adverse determination.  In any such
judicial proceeding or arbitration the Company shall have the burden of proving
that Indemnitee is not entitled to indemnification or advancement of Expenses,
as the case may be, notwithstanding such adverse determination.

 

4.3                                 The
Company shall be precluded from asserting in any judicial proceeding or
arbitration pursuant to Section 4.1 that the procedures and presumptions
of this Agreement are not valid, binding or enforceable and shall stipulate in
any such court or before any such arbitrator that the Company is bound by all
of the provisions of this Agreement.

 

4.4                                 In
the event that Indemnitee seeks a judicial adjudication of or an award in
arbitration pursuant to Section 4.1 to enforce Indemnitee’s rights under,
or to recover damages for breach of, this Agreement, Indemnitee shall be
entitled to recover from the Company, and shall be indemnified by the Company
against, all Expenses actually and reasonably incurred by Indemnitee in such
judicial adjudication or arbitration, if 
Indemnitee prevails therein or if such recovery is ordered by the court
or the arbitrator.  If it shall be
determined in such judicial adjudication that Indemnitee is entitled to receive
part but not all of the indemnification or advancement of Expenses sought, the
Expenses incurred by Indemnitee in connection with such judicial adjudication
or arbitration shall be appropriately pro-rated.

 

5.                                       Security.  To the extent requested by the Indemnitee and
approved by the Company’s Board of Directors in its sole discretion, the
Company may at any time and from time to time provide security to the
Indemnitee for the Company’s obligations hereunder through an irrevocable bank
letter of credit, funded trust or other collateral.  Any such security, once provided to the
Indemnitee, may not be revoked or released without the prior, written consent
of Indemnitee.

 

6.                                       Insurance.  To the extent that the Company maintains an
insurance policy or policies providing liability insurance for directors or
executive officers of the Company (or fiduciaries of any other enterprise),
Indemnitee shall be covered by such policy or policies in accordance with its
or their terms to the maximum extent of the coverage available for any other
director or executive officer (or fiduciary) under such policy or
policies.  The Company shall not be
liable under this Agreement to make any payment of amounts otherwise
indemnifiable hereunder if and to the extent Indemnitee has otherwise actually
received such payment under any insurance policy, contract, agreement, the
Company’s Articles of Continuance or By-Laws, each as amended, or
otherwise.  If the Company has liability
insurance for directors or executive officers of the Company in effect at the
time of the receipt by the Company from Indemnitee of a notice of a Proceeding,
the Company shall cause timely notice of the Proceeding to be given to the
Company’s insurer or insurers in accordance with the procedures set forth in
the respective applicable insurance policies.

 

7.                                       Definitions.

 

7.1                                 “Change
in Control” means an occurrence, after the date of this Agreement, of a change
in control of the Company of a nature that would be required to be reported in
response to Item 6(e) of Schedule 14A of Regulation 14A (or in response to
any similar item on any similar schedule or form) promulgated under the
Securities Exchange Act of 1934 (the “Act”), whether or

 

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not the Company is then
subject to such reporting requirement; provided, however, that, without
limitation, such a Change in Control also shall be deemed to have occurred
if:  (a) any “Person” (as such term
is used in Section 13(d) of the Act), other than a trustee or other
fiduciary holding Company securities under an employee benefit plan of the
Company acting in such capacity or a corporation owned directly or indirectly
by the shareholders of the Company in substantially the same proportions as
their ownership of stock of the Company, is or becomes the “beneficial owner”
(as defined in Rule 13d-3 under the Act), directly or indirectly, of
securities of the Company representing 20% or more of the combined voting power
of the Company’s then outstanding securities without the prior approval of at
least two thirds of the members of the Board of Directors in office immediately
prior to such person attaining such percentage interest; (b) the Company
is a party to a merger, consolidation, sale of assets or other reorganization,
or a proxy contest, as a consequence of which members of the Board of Directors
in office immediately prior to such transaction or event constitute less than a
majority of the Board of Directors thereafter; or (c) during any period of
two consecutive calendar years, individuals who at the beginning of such period
constituted the Board of Directors (including for this purpose any new director
whose election or nomination for election by the Company’s shareholders was
approved by a vote of at least two thirds of the directors then still in office
who were directors at the beginning of such period or were so approved
themselves) cease for any reason to constitute at least a majority of the Board
of Directors.

 

7.2                                 “Company”
means, in addition to World Heart Corporation, any constituent corporation
(including any constituent of a constituent) absorbed in a consolidation or
merger to which World Heart Corporation. (or any of its Subsidiaries) is a
party which, if its separate existence had continued, would have had power and
authority to indemnify its directors, officers, and employees or agents, so
that if Indemnitee is or was a director, officer, employee or agent of such
constituent corporation, or is or was serving at the request of such
constituent corporation as director, officer, employee or agent of another
corporation, partnership, joint venture, trust or other enterprise, Indemnitee
shall stand in the same position under the provisions of this Agreement with
respect to the resulting or surviving corporation as Indemnitee would have with
respect to such constituent corporation if its separate existence had
continued.

 

7.3                                 “Disinterested
Director” means a director of the Company who is not and was not a party to the
Proceeding in respect of which indemnification is sought by Indemnitee, and who
is not an affiliate of Indemnitee.

 

7.4                                 “Expenses”
shall include all reasonable and necessary attorneys’ fees, retainers, court
costs, transcript costs, fees of experts, travel expenses, duplicating costs,
printing and binding costs, telephone charges, postage, delivery service fees,
and all other disbursements or expenses of the type customarily incurred in
connection with prosecuting, defending, appearing as a witness in, preparing to
prosecute or defend or appear as a witness in, or investigating a Proceeding,
but shall not include any judgments, fines or penalties actually levied against
Indemnitee for such individual’s violations of law other than any monetary penalty
enforced in the case of a criminal or administrative action or proceeding where
the Indemnitee had reasonable grounds for believing that the Indemnitee’s
conduct was lawful.

 

7.5                                 “Independent
Counsel” means a law firm, or a member of a law firm, that is experienced in
matters of corporation law and neither presently is, nor in the past five years
has

 

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been, retained to
represent: (i) the Company or Indemnitee in any matter material to either
such party (other than with respect to matters concerning the Indemnitee, or
any affiliate thereof, under this Agreement, or of other Indemnitees under
similar indemnification agreements), or (ii) any other party to the
Proceeding giving rise to a claim for indemnification hereunder.  Notwithstanding the foregoing, the term “Independent
Counsel” shall not include any person who, under the applicable standards of
professional conduct then prevailing, would have a conflict of interest in
representing either the Company or Indemnitee in any action to determine
Indemnitee’s rights under this Agreement.

 

7.6                                 “Proceeding”
means any pending, threatened or completed action, suit, arbitration, alternate
dispute resolution mechanism, investigation, inquiry, administrative hearing or
any other actual, threatened or completed proceeding, whether brought by or in
the right of the Company or otherwise, and whether civil, criminal,
administrative or investigative, including without limitation any appeal
therefrom, in which Indemnitee was, is or will be involved as a party or
otherwise by reason of (i):  being,
having been or having agreed to become a director or executive officer of the
Company; (ii) any action taken by Indemnitee or of any action on
Indemnitee’s part while acting as director or executive officer of the Company;
or (iii) at the request of the Company, being, having been or having
agreed to become a director, officer or fiduciary of any other entity or
enterprise; and in any such case described above, whether or not serving in any
such capacity at the time any liability or expense is incurred for which
indemnification, reimbursement, or advancement of expenses may be provided
under this Agreement..

 

7.7                                 “Subsidiary”
shall mean any corporation, limited liability company, partnership, joint
venture, trust or other entity of which more that 50% of the outstanding voting
securities or equity interests are owned directly or indirectly by the Company
(a “Substantial Subsidiary”), by the Company and one or more other Substantial
Subsidiary, or by one or more other Substantial Subsidiaries.

 

8.                                       General.

 

8.1                                 The
rights provided by this Agreement shall not be exclusive of any other rights to
which Indemnitee may at any time be entitled under applicable law, the Company’s
Articles of Continuance or By-Laws, each as amended, any other agreement, a
vote of shareholders or a resolution of directors, or otherwise.  Notwithstanding any other provision of this
Agreement, the Company hereby agrees to indemnify Indemnitee to the fullest extent
permitted by applicable law and the Company’s Articles of Continuance and
By-Laws, each as amended, notwithstanding that such indemnification is not
specifically authorized by the other provisions of this Agreement, the Company’s
Articles of Continuance or By-Laws, each as amended, or by statute.  In the event of any change, after the date of
this Agreement, in any applicable law, statute, or rule which expands the
right of a Canadian corporation to indemnify a member of its board of directors
or an executive officer, such changes shall be, ipso facto, within the
purview of Indemnitee’s rights and the Company’s obligations under this
Agreement.  In the event of any change in
any applicable law, statute or rule which narrows the right of a Canadian
corporation to indemnify a member of its Board of Directors or an executive
officer, such changes, to the extent not otherwise required by such law, statute,
or rule to be applied to this Agreement or by the Company’s Articles of
Continuance or By-Laws, each as amended, and provided that such changes do not
conflict with the Company’s Articles

 

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of Continuance or
By-Laws, each as amended, shall have no effect on this Agreement or the parties’
rights and obligations hereunder.

 

8.2                                 This
Agreement shall be effective as of the date set forth on the first page and
may apply to acts or omissions of Indemnitee which occurred prior to such date
if Indemnitee was a director or executive officer of the Company or, at the request
of the Company, was serving at the request of the Company as a director,
officer or fiduciary of any other corporation, partnership, joint venture,
trust, employee benefit plan or other enterprise, at the time such act or
omission occurred.  This Agreement shall
continue until and terminate upon the later of: (a) five years after the
date that Indemnitee shall have ceased to serve as a director or executive
officer of the Company or fiduciary of any other corporation, partnership,
joint venture, trust, employee benefit plan or other enterprise which
Indemnitee served at the request of the Company; or (b) the final
termination of all pending Proceedings in respect of which Indemnitee is
granted rights hereunder and of any proceeding commenced by Indemnitee relating
thereto.  This Agreement shall be binding
upon the Company and its successors and assigns (including any direct or
indirect successor by purchase, merger, consolidation or otherwise to all,
substantially all or a substantial part of the business or assets of the
Company) and shall inure to the benefit of Indemnitee and Indemnitee’s heirs,
executors and administrators.

 

8.3                                 In
the event of any payment under this Agreement, the Company shall be subrogated
to the extent of such payment to all of the rights of recovery of Indemnitee,
who shall take all action necessary to secure such rights, including execution
of such documents as are necessary to enable the Company to secure or to bring
suit to enforce such rights.

 

8.4                                 Nothing
in this Agreement is intended to require or shall be construed as requiring the
Company to do or fail to do any act in violation of applicable law, including
the Canada Business Corporations Act or the
corporations law of any other jurisdiction pursuant to which the Company may be
continued, or the Company’s Articles of Continuance or By-Laws, each as
amended.  The Company’s inability,
pursuant to court order, to perform its obligations under this Agreement shall
not constitute a breach of this Agreement. 
Moreover, both the Company and Indemnitee acknowledge that in certain
instances, public policy may override applicable law and prohibit the Company
from indemnifying its directors and executive officers under this Agreement or
otherwise.  The Company and Indemnitee
acknowledge that the SEC has taken the position that indemnification is not
permissible for liabilities arising under certain federal securities laws.  If any provision or provisions of this
Agreement shall be held to be invalid, illegal or unenforceable for any reason
whatsoever: (a) the validity, legality and enforceability of the remaining
provisions of this Agreement shall not in any way be affected or impaired
thereby; and (b) to the fullest extent possible, the provisions of this
Agreement shall be construed so as to give effect to the intent manifested by
the provision held invalid, illegal or unenforceable.

 

8.5                                 No
supplement, modification or amendment of this Agreement shall be binding unless
executed in writing by both of the parties hereto.  No waiver of any of the provisions of this
Agreement shall be deemed or shall constitute a waiver of any other provision
hereof (whether or not similar) nor shall such waiver constitute a continuing
waiver.

 

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8.6                                 Indemnitee
agrees to notify the Company as soon as practicable in writing upon being
served with any summons, citation, subpoena, notice of investigation or
inquiry, complaint, indictment, information or other document relating to any
Proceeding or matter which may be subject to indemnification or advancement of
Expenses covered hereunder; provided, however, that the failure to give any
such notice shall not disqualify the Indemnitee from indemnification
hereunder.  Such notice shall be provided
to:  (a) the Chief Executive Officer
of the Company at 825 North, 300 West, Suite NEI07, Salt Lake City, Utah;
and (b) Virginia Schweitzer, McCarthy Tétrault LLP, 40 Elgin Street, Suite 1400,
Ottawa, Ontario, K1P 5K6.

 

8.7                                 All
notices, requests, demands and other communications hereunder shall be in
writing and shall be deemed to have been duly given if:  (a) actually received; or (b) mailed
by certified or registered mail, postage prepaid, on the third business day
after the date on which it is so mailed.

 

8.8                                 This
Agreement shall be governed by, and construed and enforced in accordance with,
the laws of the State of Delaware.

 

8.9                                 This
Agreement sets forth the entire agreement and understanding of the parties
relating to the subject matter herein and merges all prior discussions,
understandings and representations between them.

 

8.10                           This
Agreement has been reviewed by each of the parties hereto and their respective
counsel; accordingly, this Agreement shall be deemed to be the product of all
of the parties hereto, and no ambiguity shall be construed in favor of or
against any one of the parties hereto.

 

8.11                           Nothing
in this Agreement shall confer upon Indemnitee any right to continue to serve
as an officer or director of the Company for any period of time or at any
particular rate of compensation.

 

8.12                           This
Agreement may be executed in two or more counterparts, each of which shall be
deemed an original and all of which together shall constitute one instrument.

 

IN WITNESS WHEREOF, the
parties hereto have executed this Agreement on the day and year first above
written.

 

	
   

  	
  WORLD HEART CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  INDEMNITEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Address:

  

 

10

 

Exhibit A

 

UNDERTAKING

 

1.                                       This Undertaking is submitted pursuant to
the Indemnification Agreement dated as of
                                
between World Heart Corporation, a corporation continued under the laws of
Canada (the “Company”), and the undersigned (the “Agreement”).  Capitalized terms used but not defined herein
shall have the respective meanings set forth in the Agreement.

 

2.                                       I
am requesting advancement of certain Expenses in connection with a Proceeding.

 

3.                                       I
hereby undertake to repay such advances if it shall ultimately be determined
that I am not entitled to be indemnified by the Company therefor under the
Agreement or otherwise.

 

4.                                       The
expenses have been incurred in connection with the following matter(s):

 

 

	
   

  	
  Signed:

  	
   

  
	
   

  	
   

  
	
   

  	
  Dated:ex-10_1.htm

    TBS INTERNATIONAL LIMITED
& SUBSIDIARIES                EXHIBIT
10.1

     

     

    

      LEASE OF
REAL PROPERTY

      

      FROM

      

      JOSEPH
E. ROYCE, Landlord

      

      to

      

      TBS
SHIPPING SERVICES INC., Tenant

      _______________________________________________________________________

      

      

      

      

      DATED:                 January
1, 2009

      

      PREMISES:            612
East Grassy Sprain Road

      Yonkers, New York 10710

      

      

      

      

      

      

      

      

      

      

      

      CITY OF
YONKERS

      COUNTY OF
WESTCHESTER

      SECTION:

      BLOCK:

      LOT:

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      
        1.        Property 

        1.1.  Tenant’s
Due Diligence Contingency 

        2.        Lease
Term 

        3.        Rent 

        3.1.1           Fixed
Rent 

        3.1.2           Additional
Rent 

        3.1.3           Rent
Abatement 

        4.        Condition
of Property. 

        4.1  Readying
the Property and Building for the Tenant 

        4.2  Tenant’s
Work 

        5.        Landlord
Representations as Inducement To Tenant to Sign This Lease 

        5.1  Formation 

        5.2  Power
and Authority 

        5.3  Due
Authorization 

        5.4  Consent
and Compliance 

        5.5  Solvency 

        5.6  Record
Title 

        5.7  Condition
of Title 

        5.8  Matters
of Survey 

        5.9  Separate
Parcels 

        5.10.   Public
Access 

        5.11           Condition
of Building and Improvements 

        5.12           Public
Utilities 

        5.13  Compliance
Issues 

        5.14    Zoning 

        5.15           Flood
and Inland Wetland Zones 

        5.16           Legal
Compliance 

        5.17           Litigation 

        5.18  Compliance 

        5.19           Hazardous
Materials/Underground Tanks 

        6.        Transfer
of Interest 

        7.        Maintenance
and Repair Obligations 

        8.          Insurance 

        9.        Services
and Utilities 

        10.
        Casualty 

        11.
         Condemnation 

        12.        Compliance
with Law 

        13.        Use 

        14.           Mechanics
Liens 

        15.          Signage 

        16.          Communications 

        17.
         Dumpster 

        18.          Surrender 

        19.          Landlord’s
Lien 

        20.          Subordination
of Lease 

        21.
         Estoppels 

        22.
         Quiet
Enjoyment 

        23.          Hazardous
Materials 

        24.          Tenant
Default 

        25.
         Landlord
Default 

        26.          Notices 

        27.
        Holding
Over 

        28.          Broker 

        29.          Notice
of Lease 

        30.          Waiver
of Jury Trial 

        31.           Assignment
and Subletting 

        32.          Leasehold
Mortgages

        33.        Miscellaneous 

        

        

        LEASE

        

        THIS LEASE ("Lease") has been entered into
as of January 1, 2009, between Joseph E. Royce, an individual whose address is
52 Old Orchard Lane, Scarsdale, New York 10583, ("Landlord"), and TBS Shipping
Services Inc., chartered under the laws of the State of New York with offices at
612 East Grassy Sprain Road, Yonkers, New York 10710 ("Tenant").

        

        W I T N E S S E T H
:

        

        WHEREAS, Landlord is the owner
of that certain piece or parcel of land located at 612 East Grassy Sprain Road,
Yonkers, New York 10710 also known as "Treetops" which consists
of  approximately six (6)± acres including parking
lots, roadways, lawns and landscaping (“Property”) more particularly
described on Exhibit
A; and

        

        WHEREAS, The Property consists
of (i) a Main Building containing three (3) stories of approximately 10,000
square feet and (ii) a Carriage House containing 1.5 stories of approximately
5,000 square feet and Tenant desires to lease one hundred (100%) percent of the
space in said building (“Building”).

        

        NOW THEREFORE, in
consideration of the promises and covenants contained herein, and for other good
and valuable consideration, the sufficiency and receipt of which are hereby
acknowledged, Landlord and Tenant do hereby agree as follows:

        

        1.           Property.                                Landlord
hereby leases the Property and appurtenances thereto, to the Tenant, and Tenant
hereby rents the Property and appurtenances thereto, from the Landlord, all on
the terms and conditions of this Lease.  Landlord represents to Tenant
that the Property is vacant, contiguous to and with direct legal access through
a legal curb cut to a publicly accepted street known as East Grassy Sprain Road
and a separate, distinct and legal tax and subdivision lot.  It is the
intention of the parties that Landlord shall lease the Property and all
appurtenances thereto, to Tenant and that Tenant may thereafter, during the
Term, at Tenant’s cost and expense, perform any work, alterations, decorations,
installations, additions, improvements, repairs or restorations to the Property
(“Tenant’s Work”) for
Tenant’s purposes. At Tenant’s sole cost, Landlord agrees to cooperate with
Tenant (including signing applications) in obtaining any necessary permits for
any Tenant’s Work that Tenant is permitted to make hereunder.  The
Property is to be leased to Tenant at a Fixed Rent (subject to escalation) which
is intended to be a net rent to Landlord, subject, however, to certain
obligations of Landlord more particularly set forth herein.

        

        1.1.  Tenant’s
Due Diligence Contingency. INTENTIONALLY
OMITTED.

        

        2.           Lease
Term.  The "Term" of the Lease is for one
(1) year commencing as of January 1, 2009 ("Commencement Date") and
terminating December 31, 2009 ("Termination
Date").  Provided that Tenant is not in default at the time of
exercise following the receipt of notice and expiration of any applicable cure
periods, Tenant shall have five (5) renewal option periods of one (1) year each,
all on the same terms and conditions contained herein.  If Tenant
shall elect to exercise its right to renew the Term, Tenant shall give notice to
Landlord of such election not later than that date which is three (3) months
preceding the Termination Date of the Term as then in effect.  Upon
the giving of such notice in a timely fashion, the Term shall be deemed renewed,
such renewal Term to begin immediately upon the occurrence of the Termination
Date as then in effect.  Notwithstanding the preceding, if Tenant
shall fail to give notice of renewal as and when required herein, Landlord shall
give a notice to Tenant advising that Tenant has failed to exercise its renewal
rights herein, and Tenant shall thereafter have an additional thirty (30) days
following receipt of Landlord’s notice in which to exercise the renewal
rights.  The “Term” as used herein shall include, as the context may
require, any and all renewal option periods.

        

                   3.           Rent. The obligation to pay
Rent and the commencement of the Term of the Lease shall be as of the date of
this Lease. Rent for any partial month at the beginning or end of the Term shall
be apportioned based upon the number of days elapsed versus the number of days
in the applicable month.  Tenant will pay the following two types of
Rent:

        

        3.1.1                      Fixed
Rent.  Tenant shall pay "Fixed Rent" to the Landlord in
equal monthly installments, on the first day of each month, in advance, at the
address first set forth above for the Landlord as follows:

        

        (a)  during the and in
respect of the period from the Commencement Date of this Lease, a yearly amount
equal to Two Hundred Forty Thousand and 00/100 ($240,000.00) Dollars payable in
equal monthly installments of Twenty Thousand and 00/100 ($20,000.00)
Dollars;

        

        (b)  INTENTIONALLY
OMITTED

        

        3.1.2                      Additional
Rent.  All other sums Tenant must pay to Landlord under this
Lease are, in the aggregate, the "Additional Rent," which will
be due and payable as provided throughout this Lease.  Tenant will pay
promptly when due and payable, one hundred percent (100%) of the Operating
Expenses and Taxes of the Property which are applicable at any time during the
Term of this Lease as Additional Rent.  All such Operating Expenses
and Taxes shall be pro-rated for the partial month in which the Commencement
Date and Termination Date occur, if applicable.

        

        For purposes hereof, "Operating Expenses" will mean
(i) all utilities consumed by Tenant at the Property, including without
limitation, those for sewer, water, heat, gas, oil, electricity, power and air
conditioning (to the extent present at the Property); (ii) Tenant’s maintenance
and repair of the Building and improvements at the Property, including but not
limited to all regular and seasonal Property landscape and maintenance costs,
snow plowing, parking lot maintenance and similar Property maintenance repair
costs; (iii) the insurance of the Property carried by Tenant; (iv) ADT or
similar security/alarm system service for the Building; (v) sprinkler monitoring
service for the Building; and (vi) private garbage removal
service.  Tenant shall pay all Operating Expenses directly to the
entity providing or charging for the same, and with respect to those incurred by
Landlord pursuant to the terms hereof, directly to Landlord.  Landlord
represents and agrees that no party other than the Tenant shall have rights to
or use of the Property or any of the utility or other systems thereon, thus
resulting in all Operating Expenses being incurred for the sole benefit of the
Tenant.

        

        For purposes hereof, "Taxes" will mean all real
property taxes, assessments, sewer and water use charges imposed upon the
Property by the City of Yonkers and County of Westchester.  Excluded
from the definition of Taxes are income, inheritance, succession, estate, gift,
franchise or transfer taxes, and any and all special assessments attributable to
the initial improvements of the Property (i.e. any special assessments for
utility lines or sidewalks associated with the initial improvement of the
Property by Landlord).  Landlord shall deliver all Tax bills directly
to Tenant no later than ten (10) days after receipt thereof by Landlord, or
Tenant may have Tax bills sent directly to Tenant for payment and Tenant shall
pay the same directly to the assessing authority.  If Landlord shall
fail to deliver such Tax bills to Tenant as and when required, Landlord shall
pay all penalties and other costs resulting from the late payment thereof by
Tenant.  Tenant agrees that it shall pay such Tax bills timely given
to Tenant on or before the due date therefor.  Notwithstanding the
above, Tenant shall have the right to contest Taxes imposed pursuant to the
terms hereof, and to not pay such Taxes or to only pay a portion thereof during
the pendency of such challenge, provided Tenant pays any costs, interest and/or
penalties imposed by the taxing authority and indemnifies Landlord against any
loss, cost or expenses incurred by Landlord in connection
therewith.

        

        3.1.3                      Rent
Abatement.  INTENTIONALLY OMITTED

        

        4.           Condition of
Property.

        

        4.1  Readying
the Property and Building for the Tenant.  Tenant has inspected
the Property and takes the Property in “as is” condition.

         

        4.2  Tenant’s
Work. During the Term Tenant
may not perform any work, alterations, installations, additions, improvements,
structural repairs or restorations to the Property (“Tenant’s Work”) without the
prior written consent of Landlord which (i) in the case of alterations,
additions, installations or improvements of a structural nature or involving the
Building systems, may be granted or withheld by Landlord in its sole and
absolute discretion and (ii) in the case of alterations or improvements of a
non-structural nature or not involving Building systems, shall not be
unreasonably withheld or delayed.  In connection with such consent,
Tenant shall submit to Landlord such detailed plans, specifications, drawings
and other materials reasonably requested by Landlord.  Tenant may make
such non-structural alterations and perform work of a decorative nature without
Landlord’s prior written consent. At Tenant’s sole cost, Landlord agrees to
cooperate with Tenant (including signing applications) in obtaining any
necessary permits for any Tenant’s Work that Tenant is permitted to make
hereunder. In all cases the Tenant’s Work shall be performed at Tenant’s sole
cost and expense and by contractors selected by Tenant.  Tenant agrees
that the Tenant’s plans and specifications shall be in compliance with
applicable laws, rules and regulations, that Tenant shall not commence
construction until it obtains (if required) a building permit for Tenant’s Work,
and that such Tenant’s Work shall be performed in accordance with the building
permit, in compliance with applicable law and in accordance with the Tenant’s
plans and specifications.  As a condition of approving such Tenant's
Work the Landlord may require the Tenant to maintain such additional insurance
coverages (in addition to those required in Article 8 hereof) as the Landlord
may reasonably require.

        

        

        5.           Landlord
Representations as Inducement To Tenant to Sign This Lease.  In
order to induce Tenant to enter into this Lease and to perform the Tenant’s
Work, Landlord represents and warrants to Tenant that:

        

        With
Respect to Landlord and the Transaction.

        

        5.1 Formation.
Landlord is an individual and has not been involved as a debtor in a loan
default or credit workout scenario with Tenant.

        

        5.2  Power
and Authority.  Landlord has full power and authority to
execute and deliver this Lease and to perform all of its obligations
hereunder.

        

        5.3  Due
Authorization.  This Lease has been duly authorized, executed
and delivered by Landlord and constitutes a legal, valid and binding agreement
of Landlord, enforceable against Landlord in accordance with its
terms.

        

        5.4  Consent
and Compliance.  All regulatory consents, authorizations,
approvals and filings required of Landlord by any federal, state or local law,
rule or regulation for the execution and delivery of this Lease and the
performance of Landlord’s obligations herein have been obtained or made except
for the land use permits and approvals expressly set forth herein as being
required to be obtained or performed subsequent to the execution and delivery of
this Lease; and the execution and delivery of this Lease by Landlord and the
performance by Landlord of its obligations herein and contemplated hereby do not
violate any present Federal, State or local law, rule or regulation, or conflict
with or result in a breach of the provisions of, or constitute a default under
any indenture, franchise, permit, license, note, agreement or other instrument
to which Landlord is a party or by which Landlord.

        

        5.5  Solvency.  Landlord
is solvent, and there has been no petition in bankruptcy, whether voluntary or
involuntary, nor has there been any assignment for the benefit of creditors
filed under the bankruptcy or insolvency laws of the United States or any state
thereof or any action brought under the aforesaid bankruptcy or insolvency being
against or with respect to Landlord, and Landlord represents and warrants that
it has sufficient funds to perform its obligations hereunder.

        

        With Respect to
Title.

        

        5.6  Record
Title.  Landlord is the sole owner of the
Property.

        

        5.7  Condition
of Title.  Except for the matters set forth on Exhibit
B hereto ("Permitted
Title Exceptions"), Landlord has good and marketable, indefeasible,
absolute fee simple title to the Property free and clear of all defects,
mortgages, deeds of trust, security interests, liens, encumbrances, easements,
covenants, restrictions, reservations, conditions, encroachments, and any other
matters or defects whatsoever.

        

        5.8  Matters
of Survey.  No
state of facts exist which would be revealed by a careful inspection or survey
of the Property would cause the condition of title not to be as described above.
If in the possession of Landlord or its agents, Landlord shall deliver to
Tenant, at time of execution of this lease, an “as built” survey of the Property
showing all improvements thereon and the location of all parking spaces and
utility lines.

        

        5.9  Separate
Parcels.  The parcel of land that constitutes the Property is a
separately assessed and identified parcel for purposes of real estate taxation
and land use laws (including, without limitation, subdivision and zoning laws),
and receives a separate tax bill. Landlord agrees that (a) the Property shall at
all times remain a separate and distinct parcel and at no time in the future
shall the Property be included with any other parcels; and (b) that no other
property surrounding the Property shall have any rights to use any portion of
the Property for any purpose.

        

        5.10.   Public
Access.  The Property has unlimited contiguous access to and
from East Grassy Sprain Road, a publicly dedicated and accepted City of Yonkers
maintained street, without crossing any other lands and Landlord and Tenant have
no responsibility for maintenance of such street, but Tenant shall have the
obligation to maintain the parking lot located on of the
Property.  Landlord has no knowledge of any pending changes to such
street, including, without limitation, modification to size, location, grading
and paving, expansion or extension.

        

        With Respect to the
Condition of the Property

        

        5.11           Condition
of Building and Improvements.  To the best knowledge of
landlord, the Building and other improvements are structurally sound and good
and fully operating condition, fit for the purposes for which the same were
constructed, subject, however, to any improvements to be performed by the
Tenant.

        

        5.12           Public
Utilities.  Adequate supplies of all public utilities,
including without limitation water, sewer, gas, electric, telephone, and
drainage facilities and other utilities required by law or by the normal use and
operation of the Property are  installed and connected with the
Building pursuant to valid permits and without cost to Tenant, and will be
adequate to serve the Property and Building and to permit full compliance with
all requirements of law and normal usage of the Property and Building by the
occupants thereof and their licensees and invitees.  With the possible
exception of water, which may enter the Property and connect to the Building
from the municipal parking lot at the rear of the Property, no such utilities
cross other property, and all such utilities enter the Property directly from
Purchase Street. All such utilities are “live” to the Building and ready for
Tenant to hook into from a utility cabinet within the Building.

        

        5.13  Compliance
Issues.  No proceeding is pending or, to the best of Landlord’s
knowledge, is threatened, nor do any state of facts exist which could, with the
passage of time, result in the revocation or a limitation of any licenses,
qualifications, permits, franchises, zoning variances and other governmental
approvals and authorizations associated with the Property.

        

        5.14    Zoning.
The applicable Zoning Regulations permit the property to be used for commercial
office space.

        

        5.15           Flood and
Inland Wetland Zones.  The Property is not located in a flood
zone or inland wetland area.  Attached hereto is a FNIS Flood Services
flood hazard determination.

        

        5.16           Legal
Compliance.  To the best knowledge of Landlord, the Property
and the present and past uses thereof and all present and past operations
therein are and were in full compliance with all local, state and federal laws,
rules and regulations applicable to the Property or the uses
thereof.  Landlord has no knowledge of any condemnation,
environmental, zoning, land use, or other proceedings, either instituted or
planned to be instituted, which would affect the use and operation of the
Property for Tenant’s intended purpose or the value of the Property, nor has
Landlord received any notice of any special assessment proceedings affecting the
Property.  Landlord has no notice of any governmental body, or other
party claiming or requiring, or calling attention to the need for, any work,
repairs, construction, alterations or installation on or in connection with the
Property, which has not been complied with.

        

        5.17           Litigation.  There
is no (i) action, dispute, claim, litigation, proceeding, labor dispute,
arbitration, investigation or other proceeding at law or in equity pending or,
to the best of Landlord’s knowledge, threatened against Landlord with respect to
the Property or otherwise relating to the transactions contemplated by this
Lease, and Landlord knows of no basis for any such action relative to the
Property or such transactions; and (ii) there are no decrees, injunctions or
orders of any court or governmental department or agency outstanding against
Landlord with respect to the Property or the Property.

        

        With Respect to
Environmental Matters.

        

        5.18  Compliance.  The
Property is in compliance with and has no liability or obligation arising under
applicable federal, state and local laws pertaining to air and water quality,
solid waste, hazardous materials, worker and community right-to-know, hazardous
materials, toxic substance control, radioactive material management and disposal
and any other environmental laws, and the Landlord has not received any notice
from any applicable governmental agency seeking any information or alleging any
violation of such environmental laws.

        

        5.19           Hazardous
Materials/Underground Tanks.  Landlord has not caused or
permitted any uses of the Property (or any other real property of which the
Property has been a part within the preceding three (3) years, to generate,
manufacture, refine, transport, treat, store, handle, dispose, transfer, produce
or process any hazardous materials or solid waste and has not caused or
permitted and has no knowledge of the release of any such hazardous materials
on-site or off site of the Property.  The Property does not, to the
best of Landlord’s knowledge, contain any hazardous materials and no such
materials are located on, in or under the Property.  No underground
storage tanks exist on the Property.  No condition, circumstance, or
set of facts exists with respect to the Property which constitutes a significant
hazard to health, safety, property or the environment.

        

        6.           Transfer
of Interest.  (a)  Landlord shall
promptly notify Tenant in writing if Landlord shall convey the title to the
Property to a new owner, giving the name and address of the new owner and
instructions regarding the payment of rent.  If Landlord does not so
notify Tenant of a conveyance, Tenant may continue to pay Rent and other amounts
due hereunder to the party to whom Tenant has been making payment and such
payments shall be deemed to have been properly made to the correct
party.  In the event of any such transfer of title of Landlord in and
to the Property or any part thereof, whether voluntary or involuntary, or by act
of Landlord or by operation of law, Tenant shall be under no obligation to pay
Rents or other charges thereafter accruing until Tenant shall have been notified
in writing by Landlord of such change in title, at which time any Rents not so
paid shall be immediately due and payable.

        

        (b)  If during the
term hereof Landlord's interest in this Lease shall be acquired by more than one
person, firm, corporation, or other entity, whether by conveyance, operation of
law or otherwise, Landlord shall by notice to Tenant signed by all of the then
Landlords hereunder appoint one such Landlord to whom Rent and all charges
hereunder may be paid by Tenant and upon whom all notices which Tenant may give
hereunder may be served.  Until such appointment shall be made, Tenant
shall be authorized from time to time to select any one of such Landlords and to
pay all Rent and all charges coming due hereunder to, and serve all notices
upon, the Landlord so selected until such time as such appointment shall have
been made as aforesaid.  The service of any notice upon and the
payment of any Rent or other charges to the appointed or selected lessor as
herein provided shall constitute service of notice upon, and payment of Rent or
other charges to, Landlord.

        

        7.           Maintenance
and Repair
Obligations.                                                                                     Tenant
shall take good care of the Property, and at Tenant's cost and expense, shall
make all repairs to preserve the Property in good working order and in a clean,
safe and sanitary condition, and will suffer no waste.  If Tenant does
not make such repairs to the Building as the same may be reasonably required,
Landlord may, but need not, make such repairs following notice to Tenant and 90
days opportunity to cure, and Tenant shall pay the cost thereof. If Tenant shall
dispute Landlord’s demand that repairs are so required, Tenant shall have the
right to submit the matter to the binding arbitration of the American
Arbitration Association in  Westchester County, New York, and the
decision thereof shall be binding on Landlord and Tenant, and enforceable in a
court of competent jurisdiction. Landlord shall maintain and replace as
necessary, the Building structure, including without limitation the footings,
foundation, walls, load bearing columns, and roof and roof covering and tenant
shall maintain the all other parts of the Building and Property. All repairs and
replacements made by Tenant shall be made and performed (a) at Tenant's cost and
expense, (b) so that same shall be at least equal in quality, value, and utility
to the original work or installation, and (c) in accordance with all applicable
laws and regulations of governmental authorities having jurisdiction over the
Property. All repairs and replacements made by Landlord shall be made and
performed (a) at Landlord’s cost and expense, (b) so that same shall be at least
equal in quality, value, and utility to the original work or installation, and
(c) in accordance with all applicable laws and regulations of governmental
authorities having jurisdiction over the Property.

        

        8.           Insurance.                                During
the entire Term of this Lease, Tenant, at its expense, will carry the following
insurance coverages with respect to the Property and its activities related
thereto: (1) Fire and extended coverage, vandalism and malicious mischief
insurance covering the full insurable replacement cost of the Property; (2)
Glass insurance for all exterior glass surrounding the buildings on the Property
covering full replacement cost, (3) Machine and Boiler insurance, (4) Public
liability insurance in an amount not less than $2,000,000 combined, single limit
for death, injury or property damage, and (5) Worker's compensation insurance as
required by law; but as to each of the above, with such deductibles as Tenant
shall elect provided that Tenant shall be responsible for the payment of any
such deductible.

        

        Each policy of insurance shall name
Landlord (and any Permitted Mortgagee who requests it) as an additional insured
party, as its interests may appear, but  loss payable shall be in
favor of Tenant only.  Tenant agrees, however, to hold all such
insurance proceeds and disburse the same in accordance with the terms
hereof.  Tenant's policy of casualty insurance shall contain an
agreement by the insurance company waiving its rights to recover against
Landlord (and any Permitted Mortgagee who requests it) or its and their agents
or employees for any claim thereunder.  Landlord and Tenant hereby
waive all rights and claims against one another as to any matter of a kind
covered by the insurance described herein.  Tenant will give Landlord
reasonable evidence that the insurance required under this Lease is in effect
and fully paid within 30 days of Landlord’s request therefor.

        

        9.           Services
and Utilities.  Landlord represents to Tenant that there
presently exists at and for the benefit of the Building, and Tenant shall
hereafter pay all usage charges for (but shall not pay the cost of installing if
not already connected to the Building), phone, cable, electricity, water, gas,
sewage and all other utilities, each separately metered to the
Property.  Tenant shall be responsible for interior Building
distribution of such utilities.  Without limitation to the preceding,
Tenant shall have the right to purchase its own utilities in any manner it
wishes and from any provider.

        

        10.           Casualty.  (a)(i)  If, at any
time during the Term, the  Building shall be damaged in whole or in
part by fire, the elements or other casualty (“Casualty”), Tenant, at
Tenant's sole cost, shall repair said damage and restore the Building to
substantially the same condition which existed immediately prior to the
occurrence of such damage, subject, however, to the requirements of applicable
and, to the extent the same does not unreasonably diminish the appraised value
of the Property, the changing needs of the Tenant. As long as Tenant has
complied with its insurance obligations hereunder, Tenant shall have no
obligation to expend any sums greater than the amount of insurance proceeds
actually received by Tenant plus the amount of any deductible under the policies
of insurance.  If tenant elects to self insure, Tenant shall make the
money available for restoration on the same basis as if an insurance policy was
in effect.

        

        (ii)         In
the case of a casualty impacting parking and/or access, the parties shall agree
on a reasonable abatement, and if no agreement can be reached, either party may
submit the matter to binding arbitration as permitted herein.

        

        (iii)                   The
foregoing subparagraphs (i) and (ii) notwithstanding, if the Building, or any
portion of the Property which Tenant, in its reasonable discretion, deems
material, shall  be partially or totally destroyed during the last 2
years of the initial term or during the last 2 years of any extension period,
then, within thirty (30) days after such casualty, Tenant may terminate this
Lease upon no fewer than 45 days prior written notice to Landlord, in which
event this Lease shall terminate on the date specified in such
notice.

        

        (b)           In
the event of a Lease termination as a result of a casualty, or should a “taking”
(as defined below) occur, Tenant shall be entitled to recover the value
of  relocation and moving costs, any other costs and expenses incurred
by Tenant, and the unamortized costs of its Tenant improvements (“Tenant Improvements”)
calculated as follows:  Tenant shall be entitled to the actual cost of
said Tenant Improvements multiplied by a fraction, the numerator of which is the
number of years remaining on the then current Term of the Lease and the
denominator of which shall be the  number of years remaining under the
then current Term of the Lease at the time the Tenant Improvements were
purchased.  [For example, if the Tenant Improvements cost $1000.00,
there are 10 years left in the Term of the Lease and there were 15 years left in
the Term of the Lease when the Tenant Improvements were purchased and installed,
Tenant would be entitled to $667.00 ($1000.00 multiplied by a fraction, the
numerator of which is 10 and the denominator of which is 15).]  For
purposes hereof, “Tenant Improvements” shall mean any improvements made to the
Property by the Tenant.

        

        11.            Condemnation.  (a)  If the entire
(or a material portion thereof as determined by Tenant) Property, or the use or
possession thereof, is taken in condemnation proceedings, or by any right of
eminent domain, or for any public or quasi-public use, or if Landlord shall
deliver to a governmental authority a deed in lieu of condemnation or eminent
domain  (individually or collectively, a "taking" or “taken”), then, this
Lease  shall terminate on the date when possession shall be taken by
the condemnor or if earlier, upon Tenant’s notice to Landlord that it is
terminating as a result of said taking, and Rent, Additional Rent and all other
charges payable hereunder shall be apportioned and paid in full up to that date,
and all prepaid unearned Fixed Rent, Additional Rent, and all other charges
prepaid hereunder, shall promptly be repaid by Landlord to  Tenant
(including, for example, Taxes).

        

        If only a
part of the Property shall be so taken, then Tenant may only terminate this
Lease if in Tenant’s reasonable discretion, the loss of the taken portion shall
interfere with Tenant’s use and occupancy for Tenant’s intended purpose, and
further provided that Tenant shall so notify Landlord of its election to
terminate. If Tenant shall not so terminate this Lease, then this Lease shall
continue in full force and effect, except that Fixed Rent, Additional Rent and
all other charges payable hereunder shall, subject to the provisions below
regarding parking only, be equitably abated (and if the parties cannot agree on
the appropriate abatement, then either may submit the matter to binding
arbitration as permitted by this Lease).  In such case, Tenant, at
Tenant's own expense not in excess of any condemnation proceeds, shall repair
all damage to the Property as shall have been caused by such partial taking, and
shall restore the Property to a complete architectural unit.  All
proceeds of condemnation shall be applied first to such restoration, and then
allocated between Landlord and Tenant as contemplated hereby. Fixed Rent,
Additional Rent and other charges payable hereunder shall abate until the
Property shall have been restored to a tenantable condition, including a
reasonable additional period, not to exceed 90 days, for Tenant to refixture.
During the restoration, Tenant may operate its business out of a temporary
structure such as a trailer, subject to compliance with Laws.  Tenant
shall not be obligated to pay Fixed Rent, Additional Rent or other charges for
the use of or attributable to Tenant’s temporary structure.

        

        (b)  For the
purposes of this subdivision (b), in addition to the meaning set forth above, a
"taking" shall mean any
impediment to Tenant’s full and unencumbered use of the Property which shall not
be within Landlord's or Tenant’s reasonable control.

        

        If, due
to a taking or otherwise, there shall be an impediment, which impediment shall
materially adversely affect any means of ingress or egress between the Property
and any abutting street, then, Tenant shall notify Landlord thereof. If, within
30 days after Landlord’s receipt of such notice, such impediment shall not be
cured, then Tenant may, upon 10 days' written notice to Landlord terminate this
Lease.  If Tenant shall elect to so pay reduced rent, Tenant shall
remain obligated for any other charges due under this Lease. Tenant's Fixed Rent
shall be so reduced until such time as said impediment shall be
removed.

        

        12.           Compliance
with Law.   Subject to
Landlord having complied with its obligations hereunder, Tenant shall comply
with all laws, statutes, ordinances, and regulations (collectively, "Laws") relating to the
physical condition of the Property but excluding therefrom, any obligations in
connection with environmental conditions not caused by the
Tenant.  Landlord shall remain, throughout the Term of this Lease,
fully responsible for all obligations associated with environmental
contamination not caused by the Tenant.

        

        13.           Use.                      The
Property may be used for any legal purpose.  Tenant will not use the
Property for illegal purposes. Tenant shall not commit waste.  Except
as otherwise expressly provided herein, Tenant shall have exclusive dominion and
control over the Property.

        

        Landlord represents, warrants and
covenants that the Property shall never be merged, joined or consolidated with
any other property of the Landlord and shall, during the term of this Lease,
remain a single, stand alone parcel.  Landlord represents, warrants
and covenants that Landlord shall not initiate or consent to any change of zone
or position of the Building, parking areas, curbcuts, traffic patterns, and
roadways and passageways on the Property, Municipal Property or abutting the
Property without the prior written consent of Tenant which consent shall be in
Tenant’s sole and absolute judgment and discretion.

        

        14.           Mechanics
Liens.                                           
Tenant will promptly remove any mechanic's lien or other lien filed against the
Property for work or materials by or on account of Tenant in connection with any
Tenant alteration (exclusive of work by or for the Landlord).  It will
do this within ninety (90) days after the lien is filed.  At Tenant’s
sole cost, Landlord agrees to cooperate with Tenant (including signing
applications) in obtaining any necessary permits for any alterations that Tenant
is permitted to make hereunder.

        

        15.           Signage.  At Tenant’s sole
cost, Tenant may, after obtaining all necessary municipal approvals, install,
replace and relocate on the Property and Building interior and exterior, such
signs, awnings, lighting effects and fixtures as may be used from time to time
by Tenant (collectively, "Signs"). Tenant shall maintain
and repair such Signs. At Tenant’s sole cost, Landlord agrees to cooperate with
Tenant (including signing applications) in obtaining any necessary permits for
Tenant’s Signs.

        

        16.           Communications. Notwithstanding anything to
the contrary in this Lease,  Tenant may install, maintain, and
replace, on the roof of the Building or in the Property, a satellite
communications dish and related equipment.  Tenant shall do so at its
sole cost and in accordance with all Laws; and shall defend, indemnify and hold
Landlord harmless from and against any claims, costs or expenses incurred by
Landlord as a result of such installation, maintenance or replacement by Tenant.
At Landlord's request, Tenant shall coordinate any roof installation hereunder
with Landlord's roofing contractor.

        

        17.           
Dumpster. Tenant
may, at its cost, maintain a dumpster or similar refuse container on the
Property if permitted by municipal authorities.

        

        18.           Surrender. At the expiration or other
termination of this Lease, Tenant shall surrender the Property to Landlord in as
good order and condition as they were at the commencement of the Term or may be
put in thereafter, reasonable wear and tear and damage by casualty and/or the
elements and condemnation excepted.  All alterations, additions, and
improvements in or upon the Property made by either party (except Tenant's
furniture, trade fixtures, satellite communications dish and equipment, computer
and other equipment), shall become the property of Landlord and shall remain
upon and be surrendered with the Property as a part thereof at the termination
or other expiration of the Term. At the expiration or termination of the Term,
Tenant shall remove such items enumerated in the parenthetical above as it
desires, as well as its signs and identification marks, from the Property. If
Tenant has installed a vault, Tenant may remove the vault or vault door.
Landlord agrees that should it find any personal property at the Property
following Tenant vacating the same, such as, without limitation, any negotiable
instruments, cash or personal belongings in the vault, Landlord shall promptly
deliver the same to the Tenant. At any time during the Term, Tenant may remove
the items enumerated in the parenthetical above, as well as its signs and
identification marks, from the Property and the Property.  Damage done
to the Building by such removal shall be promptly repaired by
Tenant.

        

        19.           Landlord’s
Lien.
Landlord hereby waives in favor of Tenant its landlord's lien against any and
all of the property of Tenant to the extent provided in the applicable laws,
regulations or ordinances, of the State of New York.

        

        20.           Subordination
of Lease. This
Lease shall be subject and subordinate to the lien of any bank or institutional
mortgage or mortgages now or hereafter in force against the Property or
Building, and to all advances made upon the security thereof, provided that the
holder of any such mortgage shall execute and deliver to Tenant an agreement
("SNDA”), in form
satisfactory to Tenant in Tenant’s absolute judgment, providing that such holder
will recognize this Lease and not disturb Tenant's possession of the Property in
the event of foreclosure, sale or deed in lieu of foreclosure if Tenant is not
then in default hereunder beyond any applicable cure period.  Landlord
agrees to pay Tenant’s expenses, including without limitation reasonable
attorneys’ fees incurred by Tenant for the negotiation and preparation of any
SNDA.

        

        21.            Estoppels. Landlord and Tenant agree to
deliver to each other, from time to time as reasonably requested in writing, and
within a reasonable period of time after receipt of such request, an estoppel
certificate certifying that this Lease is unmodified and in full force and
effect (or if there have been modifications, that the Lease is in full force and
effect as modified and stating the modifications), and the dates to which any
rent due hereunder has been paid in advance, if any, together with such other
information as Landlord or Tenant may reasonably require with respect to the
status of the Lease and Tenant's use and occupancy of the Property.

        

        22.            Quiet
Enjoyment.  Landlord warrants
and agrees that Tenant, on paying the rent and other charges due hereunder and
performing all of Tenant’s other obligations pursuant to this Lease, shall and
may peaceably and quietly have, hold, and enjoy the Property for the full Term,
free from claims, interference, molestation, eviction, or disturbance subject,
nevertheless, to the terms of this Lease.

        

        23.           Hazardous
Materials. (a)  For the purposes hereof, the term "Hazardous Materials" shall
include, without limitation, hazardous or toxic substances, materials that may
be deemed hazardous to human or animal health, including without limitation, oil
and petroleum derivatives and products, asbestos, lead paint and
radon.

        

        (b)  Tenant
represents and warrants that, except as herein set forth, it will not use, store
or dispose of any Hazardous Materials in the Building or
Property.  Landlord agrees that Tenant may use such commercial or
household type cleaners and chemicals to maintain the Building or
Property.  Storage of such chemicals is also
permitted.  Landlord and Tenant acknowledge that any or all of the
cleaners and chemicals described in this paragraph may constitute Hazardous
Materials.  Notwithstanding any other provision of this Lease, Tenant
may, use, store and dispose of same as herein set forth, provided that in doing
so, Tenant complies with Laws.

        

        (c)  Landlord
represents and warrants to Tenant that, as of the date on which Landlord shall
deliver possession of the Property to Tenant, the Building and Property shall be
free from contamination by Hazardous Materials. Notwithstanding anything in this
Lease to the contrary, Tenant shall not be obligated to accept possession of the
Building and Property  until any Hazardous Materials found in or on
the Building or Property have been removed, and Landlord has supplied Tenant
with a certificate from the appropriate governmental authority that such removal
has been completed, and Landlord has restored the Building and Property to the
condition which existed immediately prior to such removal and/or otherwise in
conformance with the terms of this Lease.

        

        (d)  If, at any time
during the Term, Hazardous Materials shall be found in or on the Building or
Property, then:

        

        (i)  with regard to
the presence or release of any Hazardous Materials that Tenant shall not have
caused, Landlord shall, with diligence, remove or remediate or cause the
remediation or removal of same to the extent required by Laws, and in compliance
with Laws, and at Landlord's sole cost; and Landlord agrees to defend,
indemnify, and hold Tenant harmless from and against any and all costs, damages,
expenses, and/or liabilities (including reasonable attorneys' fees) which Tenant
may suffer as a result of any claim, suit, or action regarding any such
Hazardous Materials (whether alleged or real), and/or regarding the removal and
remediation of same.  Landlord shall diligently commence or cause the
commencement of such remediation within thirty (30) days of knowledge of such
presence or release. If Landlord shall fail to commence or cause the
commencement to remediate in the manner specified in this Section,
within  the specified time periods, then, Tenant may give Landlord 10
days' prior written notice of Tenant’s election to remove or remediate the
Hazardous materials on Landlord’s behalf. If Tenant shall so remove or remediate
the Hazardous Materials, Tenant may deduct the costs for such removal and
remediation (including without limitation, testing and professional costs) from
Fixed Rent and other amounts payable by Tenant to Landlord under this
Lease.

        

        (ii) with regard to the
presence or release of any Hazardous Materials caused by Tenant, Tenant shall
remove or remediate same to the extent required by  Laws, and in
compliance with Laws, and at Tenant's sole cost; and Tenant agrees to defend,
indemnify and hold Landlord harmless from and against any and all costs,
damages, expenses, and/or liabilities (including reasonable attorneys' fees)
which Landlord may suffer as a result of any claim, suit, or action regarding
any such Hazardous Materials (whether alleged or real), and/or regarding the
removal and  remediation of same.

        

        (e)  INTENTIONALLY
OMITTED

        

        (f) INTENTIONALLY
OMITTED

        

        (g)  Each of
Landlord's and Tenant's obligations pursuant to this Article shall survive any
expiration and/or termination of this Lease.

        

        (h)  Landlord has no
knowledge of the presence of lead paint or asbestos containing materials in the
Building.

        

        24.           Tenant
Default. (a) It shall be a “Tenant Default” if: (i) Tenant
shall default in the payment of Fixed Rent or any other amount payable to
Landlord hereunder, and such default shall continue for more than fifteen (15)
days after written notice to Tenant; or (ii) Tenant shall default in fulfilling
any of the other covenants of this Lease, and such default shall continue for
more than 30 days after written notice thereof from Landlord, specifying such
default (provided that if Tenant has commenced to cure within said 30 days, and
thereafter is prosecuting same to completion, said 30 day period shall be
extended for a reasonable period of time under the circumstances, where, due to
the nature of the default, it is unable to be completely cured within 30 days);
then, in any such event, Landlord may give to Tenant notice of intention to end
the Term hereof, and if Landlord shall do so, the Term shall expire as if that
day were the day herein fixed for the expiration of the Term, and Tenant shall
then quit the Property and surrender the same, but shall remain liable as
hereinafter provided.

        

        (b)  If the notices
provided in subdivision (a) of this Section shall have been given and the Term
shall expire as aforesaid, then Landlord shall (unless otherwise agreed by the
parties), re-enter the Property, by legal process, and dispossess Tenant by
summary proceedings.

        

        (c)  In case of any
such default, re-entry, expiration and/or dispossession by summary proceedings
or otherwise (i) the rent shall become due and shall be paid up to the time of
such re-entry, dispossession and/or expiration; (ii) Landlord shall make
reasonable efforts to re-let the Property  or any part or parts
thereof, either in its own name or otherwise, for a term or terms which may, at
its option, be shorter or longer than the period which would otherwise have
constituted the remainder of the Term, and may grant concessions or free rent,
but only to such extent as Landlord, in Landlord's reasonable judgment,
considers advisable and necessary to re-let the same; and, (iii) Tenant, or its
successors, shall also pay to Landlord, as Landlord’s sole damages, liquidated
damages for the failure of Tenant to observe and perform its covenants herein
contained, any deficiency between the Fixed Rent herein reserved and the net
amount, if any, of the rents collected on account of the re-letting of the
Property for each month of the period which would otherwise have constituted the
remainder of the then-current term.  In computing such liquidated
damages, there shall be added to said deficiency such reasonable expenses as
Landlord may incur in connection with re-letting, such as legal expenses,
attorney and broker fees, but excluding renovations. Any such liquidated damages
shall be paid in monthly installments on the rent day specified in this Lease
and any suit brought to collect the amount of the deficiency for any month shall
not prejudice, in any way, the right of the Landlord to collect the deficiency
for any subsequent month by a similar proceeding. However, if Tenant shall
default on any such monthly installment, then, at Landlord's option, such
liquidated damages shall be accelerated and paid immediately by Tenant, but
discounted to their present value, using as the time remaining, the number of
full calendar months remaining in the term of this Lease following default
(beyond applicable cure periods), and using as the interest rate, the lesser of
the following:  (x) the rate (or the average of rates, if more than
one rate appears) inserted in the blank of the "Money Rates" section of "The
Wall Street Journal" (Eastern Edition) in the section reading "Prime Rate:
_____%", or (y) the base rate on corporate loans posted by at least 75% of the
nation's 30 largest banks.  (If neither rate is available for any
reason, then a reasonably equivalent rate shall be used).  In the
event of a Tenant Default, Landlord shall mitigate damages and/or
loss.  Such obligation shall survive the Term.

        

        25.            Landlord
Default.  In the event of
any default by Landlord under this Lease ("Landlord Default"), Tenant may
give Landlord written notice specifying such Landlord Default and, if Tenant
shall do so, then Landlord shall have 30 days in which to cure any such Landlord
Default; provided, however, that if the nature of the Landlord Default is such
that more than 30 days are required for its cure, then Landlord shall not be in
default if Landlord commences to cure within said 30 days and thereafter
diligently prosecutes the same to completion within a reasonable time
thereafter.  In the event that Landlord shall remain in default
following its said right to cure, then, in addition to all other rights and
remedies available to Tenant at law and in equity, Tenant may cure such Landlord
Default on behalf of Landlord by doing the necessary work and/or making the
necessary payments, and billing Landlord for the reasonable costs thereof, which
Landlord agrees to pay to Tenant within 30 days of receipt of Tenant's demand
therefor and reasonable evidence of the cost of the same. If Landlord shall fail
to pay within said 30 day period, Tenant may deduct the entire cost from any
Fixed Rent, Additional Rent and other charges due hereunder.  In the
event of a Landlord Default, Tenant shall mitigate damages and/or
loss.  Such obligation shall survive the Term.

        

        26.           Notices. Whenever, pursuant to this
Lease, notice or demand shall or may be given to either of the parties by the
other, and whenever either of the parties shall desire to give to the other any
notice or demand with respect to this Lease or the Property, each such notice or
demand shall be in writing, and any laws to the contrary notwithstanding, shall
not be effective for any purpose unless the same shall be given or served as
follows: by hand, by registered or certified mail, or by overnight express mail
such as "Federal Express", postage or charges prepaid and proof of delivery
requested, to the other party's address set forth above, or to such other
address or addresses or parties as may be designated in writing by notice from a
party, and if to a mortgagee, to such address as the mortgagee shall designate
in a notice to the parties.  Notices may be given by an agent or
attorney acting on behalf of Landlord or Tenant.  Notices shall be
deemed given upon receipt or rejection. If notices are not received by the
applicable party (as opposed to such notices having been rejected), then the
notice party shall send a second notice which shall be deemed given three
business days after being sent as aforesaid.

        

        27.           Holding
Over.  If Tenant shall
hold over after the Termination Date of the Term, then, Tenant shall be a
month-to-month Tenant on the same terms as herein provided, except that Fixed
rent shall be 105% of the Fixed rent due and payable as of the Termination
date.

        

        28.           Broker. Landlord and Tenant each
represent and warrant that it has had no dealings or conversations with any real
estate broker in connection with the negotiation and execution of this
Lease.

        

        29.           Notice of
Lease. Upon the
request of either party hereto, Landlord and Tenant agree to execute a
memorandum or notice of lease in recordable form and in compliance with New York
law. Either Tenant or Landlord may record such memorandum or notice of
lease.

        

        30.           Waiver of Jury
Trial.    LANDLORD AND TENANT AGREE THAT ANY SUIT,
ACTION OR PROCEEDING, WHETHER CLAIM OR COUNTERCLAIM, BROUGHT BY LANDLORD OR
TENANT ON OR WITH RESPECT TO THIS LEASE OR THE DEALINGS OF THE PARTIES WITH
RESPECT HERETO, SHALL BE TRIED ONLY BY A COURT AND NOT BY A
JURY.  LANDLORD AND TENANT EACH HEREBY KNOWINGLY, VOLUNTARILY AND
INTENTIONALLY WAIVE ANY RIGHT TO A TRIAL BY JURY IN ANY SUCH SUIT, ACTION OR
PROCEEDING, FURTHER, LANDLORD AND TENANT EACH WAIVE ANY RIGHT IT MAY HAVE TO
CLAIM OR RECOVER, IN ANY SUCH SUIT, ACTION OR PROCEEDING, ANY SPECIAL,
EXEMPLARY, PUNITIVE, CONSEQUENTIAL OR OTHER DAMAGES OTHER THAN, OR IN ADDITION
TO, ACTUAL DAMAGES.  LANDLORD ACKNOWLEDGES AND AGREES THAT THIS
SECTION IS A SPECIFIC AND MATERIAL ASPECT OF THIS LEASE AND THAT TENENT WOULD
NOT ENTER INTO THIS LEASE IF THE WAIVERS SET FORTH IN THIS SECTION WERE NOT A
PART OF THIS LEASE.

        

        31.           Assignment
and Subletting.  Tenant
shall have the right to assign and, sublease provided that Tenant shall give
Landlord written notice thereof.  Landlord agrees to provide any such
actual or proposed assignee, or sublessee with an estoppel certificate in form
and substance reasonably satisfactory to Tenant and Landlord upon the request of
the Tenant. No such assignment or sublet shall release Tenant of its obligations
hereunder which shall be deemed joint and several with any such assignee or
sublessee.

        

        

        32.           Leasehold
Mortgages.                                                      INTENTIONALLY
OMITTED.

        

                   33.           Miscellaneous. (a)                                           This
Lease shall be governed and construed in accordance with the laws of the state
of New York.

        

        (b)  The headings of
the sections of this Lease are for convenient reference only, and are not to be
construed as part of this Lease.

        

        (c)  The language of
this Lease shall be construed according to its plain meaning, and not strictly
for or against Landlord or Tenant; and the construction of this Lease and of any
of its provisions shall be unaffected by any argument or claim that this Lease
has been prepared, wholly or in substantial part, by or on behalf of
Tenant.

        

        (d) Landlord and Tenant each
warrant and represent to the other, that each has full right to enter into this
Lease and that there are no impediments, contractual or otherwise, to full
performance hereunder.

        

        (e)  This Lease
shall be binding upon the parties hereto and shall inure to the benefit of and
be binding upon the heirs, executors, administrators, successors and assigns of
Landlord and the successors and assigns of Tenant.

        

        (f)  In the event of
any suit, action, or other proceeding at law or in equity (collectively, "Action"), by either party
hereto against the other, by reason of any matter arising out of this Lease, the
prevailing party shall recover, not only its legal costs, but also reasonable
attorneys' fees (to be fixed by the Court) for the maintenance or defense of
said Action, as the case may be.

        

        (g)  A waiver by
either party of any breach by the other of any one or more of the covenants,
agreements, or conditions of this Lease, shall not bar the enforcement of any
rights or remedies for either that breach or any subsequent breach of any of the
same or other covenants, agreements, or conditions.

        

        (h)  All of the
exhibits and schedules attached to this Lease are incorporated into this Lease
and made a part of this lease.

        

        (i)  This Lease and
the referenced exhibits set forth the entire agreement between the parties
hereto and may not be changed or terminated orally or by any agreement unless
such agreement shall be in writing and signed by the party against whom
enforcement of such change or termination is sought

        

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

        

        (k)  The submission
of this Lease for examination does not constitute a reservation of or agreement
to lease the Property; and this Lease shall become effective and binding only
upon proper execution and unconditional delivery thereof by Landlord and
Tenant.

        

        (l)  This Lease may
be executed in separate counterparts, each of which shall be an original and all
of which shall be deemed to be one and the same instrument.

        

        (n) Landlord agrees to
cooperate with Tenant (including, without limitation, signing applications) in
obtaining any necessary permits for any changes to the Property or use of the
Property (including, without limitation, signage).

        

        (o) Any controversy or claim
which, pursuant to the terms of this Lease, is to be resolved by arbitration,
shall be settled by arbitration in accordance with the Commercial Arbitration
Rules of the American Arbitration Association. The arbitrator’s decision shall
be final and binding upon the parties hereto and judgment upon the award
rendered by the arbitrator(s) may be entered in any court having jurisdiction
thereof.

        

        (p)  Landlord
covenants that it will not do anything which would be detrimental to any land
use variance which not benefits the Property and/or the Tenant's beneficial
interests in same.

        

        

        

        

        SIGNATURES
FOLLOW

        

        

        

        IN WITNESS WHEREOF, Landlord
and Tenant have duly executed this Lease on the day and year first above
written.

        LANDLORD:

        Witnessed
by:

        

        /s/
Aimee Rameshwar                                                           /s/ Joseph E.
Royce            
         

        NAME: Joseph E. Royce

        

        /s/
Zachary Mallin          

        

        

        TENANT:

        TBS SHIPPING SERVICES
INC.

        

        

        /s/
Valerie Rosas         
                                                         BY:
/s/ Ferdinand V.
Lepere        
 

        NAME: Ferdinand V. Lepere

        TITLE: Executive Vice President
Finance

        /s/
Diana Warycha         

        

        

        

        

        STATE OF
NEW
YORK                                                                )

        :ss.:

        COUNTY OF
WESTCHESTER                                                                           )

        

        On the 5th day
of January in the year 2009 before me, the undersigned,
personally appeared JOSEPH E. ROYCE personally known to me or proved to me on
the basis of satisfactory evidence to be the individual whose name is subscribed
to the within instrument and acknowledged to me that he executed the same in his
capacity and that by his signature on the instrument, the individual, or the
person upon behalf of which the individual acted, executed the
instrument.

        

        /s/ Tara DeMakes

        Notary
Public

        

        

        STATE OF
NEW
YORK                                                                )

        :ss.:

        COUNTY OF
WESTCHESTER                                                                           )

        

        On the 5th day of January in
the year 2009 before me, the undersigned, personally appeared FERDINAND V.
LEPERE personally known to me or proved to me on the basis of satisfactory
evidence to be the individual whose name is subscribed to the within instrument
and acknowledged to me that he executed the same in his capacity and that by his
signature on the instrument, the individual, or the person upon behalf of which
the individual acted, executed the instrument.

        

                                      /s/
MaryAnn Cognatello

                                Notary
Public

         

         

        EXHIBIT
A

        

        Legal
Description

        

        EXHIBIT
B

        

        Permitted Title
Exceptions

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00156-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00156-of-00352.parquet"}]]