Document:

ex10_1.htm

     

    Exhibit
      10.1

    [FORM
      OF]

    OFFICER
      INDEMNIFICATION AGREEMENT

    

    This
      Officer Indemnification Agreement, dated as of Date (this
“Agreement”), is made by and between
      Krispy Kreme
      Doughnuts, Inc., a North Carolina corporation (the
“Company”), and Indemnitee Name
      (“Indemnitee”).

     

    RECITALS:

     

    A.           
      The day-to-day business and affairs of the Company are managed by or under
      the
      direction of its officers.

     

    B.           Thus,
      it is critically important to the Company and its stockholders that the Company
      be able to attract and retain capable persons to serve as officers of the
      Company.

     

    C.           In
      recognition of the need for corporations to be able to induce capable and
      responsible persons to accept positions in corporate management, North Carolina
      law authorizes (and in some instances requires) corporations to indemnify their
      directors and officers, and further authorizes corporations to purchase and
      maintain insurance for the benefit of their directors and officers.

     

    D.           The
      North Carolina courts have recognized that indemnification by a corporation
      serves the dual policies of (1) allowing corporate officials to resist
      unjustified lawsuits, secure in the knowledge that, if vindicated, the
      corporation will bear the expense of litigation and (2) encouraging capable
      men
      and women to serve as corporate directors and officers, secure in the knowledge
      that the corporation will absorb the costs of defending their honesty and
      integrity.

     

    E.           The
      number of lawsuits challenging the judgment and actions of officers of North
      Carolina corporations, the costs of defending those lawsuits, and the threat
      to
      officers’ personal assets have all materially increased over the past several
      years, chilling the willingness of capable men and women to undertake the
      responsibilities imposed on corporate officers.

     

    F.           Recent
      federal legislation and rules adopted by the Securities and Exchange Commission
      and the national securities exchanges have imposed additional disclosure and
      corporate governance obligations on officers of public companies and have
      exposed such officers to new and substantially broadened civil
      liabilities.

     

    G.           These
      legislative and regulatory initiatives have also exposed officers of public
      companies to a significantly greater risk of criminal proceedings, with
      attendant defense costs and potential criminal fines and penalties.

     

    H.           Under
      North Carolina law, an officer’s right to be reimbursed for the costs of defense
      of criminal actions, whether such claims are asserted under state or federal
      law, does not depend upon the merits of the claims asserted against the officer
      and is separate and distinct from any right to indemnification the officer
      may
      be able to establish, and indemnification of the officer against criminal fines
      and penalties is permitted if the officer satisfies the applicable standard
      of
      conduct.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    I.           Indemnitee
      is an officer of the Company and his/her willingness to serve in such capacity
      is predicated, in substantial part, upon the Company’s willingness to indemnify
      him/her in accordance with the principles reflected above, to the fullest extent
      permitted by the laws of the State of North Carolina, and upon the other
      undertakings set forth in this Agreement.

     

    J.           Section
      55-8-57(b) of the North Carolina Business Corporation Act provides that the
      authorization, adoption, approval, and favorable recommendation of this
      Agreement by the Company’s Board of Directors will not be deemed an act or
      corporate transaction in which the Indemnitee has a conflict of interest and
      this Agreement will not be void or voidable on such grounds, provided that
      this
      Agreement does not apply to claims made or liabilities asserted against the
      officer prior to the date of this Agreement.

     

    K.           Therefore,
      in recognition of the need to provide Indemnitee with substantial protection
      against personal liability, in order to procure Indemnitee’s continued service
      as an officer of the Company and to enhance Indemnitee’s ability to serve the
      Company in an effective manner, and in order to provide such protection pursuant
      to express contract rights (intended to be enforceable irrespective of, among
      other things, any amendment to the Company’s Articles of Incorporation or
      Amended and Restated Bylaws (collectively, the “Constituent
      Documents”), any change in the composition of the Company’s Board
      of Directors (the “Board”) or any change-in-control or
      business combination transaction relating to the Company), the Company wishes
      to
      provide in this Agreement for the indemnification of and the advancement of
      Expenses (as defined in Section 1(e)) to Indemnitee as set forth in this
      Agreement and for the continued coverage of Indemnitee under the Company’s
      directors’ and officers’ liability insurance policies.

     

    L.           In
      light of the considerations referred to in the preceding recitals, it is the
      Company’s intention and desire that the provisions of this Agreement be
      construed liberally, subject to their express terms, to maximize the protections
      to be provided to Indemnitee hereunder.

     

    AGREEMENT:

     

    NOW,
      THEREFORE, the parties hereby agree as follows:

     

    1.  Certain
      Definitions.  In addition to terms defined elsewhere herein,
      the following terms have the following meanings when used in this Agreement
      with
      initial capital letters:

     

    (a)  “Change
      in Control” means the occurrence after the date of this Agreement
      of any of the following events:

     

    (i)  the
      acquisition by any individual, entity or group (within the meaning of
      Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a
“Person”) of beneficial ownership (within the meaning
      of Rule 13d-3 promulgated under the Exchange Act) of 20% or more of the combined
      voting power of the then-outstanding Voting Stock of the Company;
provided, however, that:

     

    (A)  for
      purposes of this Section 1(a)(i), the following acquisitions shall not
      constitute a Change in Control: (1) any acquisition of Voting Stock of the
      Company directly from the Company that is approved by a majority of the
      Incumbent Directors, (2) any acquisition of Voting Stock of the Company by
      the Company or any Subsidiary, (3) any

     

    
      
         

      

      
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    acquisition
      of Voting Stock of the Company by any employee benefit plan (or related trust)
      sponsored or maintained by the Company or any Subsidiary, and (4) any
      acquisition of Voting Stock of the Company by any Person pursuant to a Business
      Combination that complies with clauses (A), (B) and (C) of
      Section 1(a)(iii) below;

     

    (B)  if
      any
      Person acquires beneficial ownership of 20% or more of the combined voting
      power
      of the then-outstanding Voting Stock of the Company as a result of a transaction
      described in clause (A)(1) of Section 1(a)(i) and such Person thereafter
      becomes the beneficial owner of any additional shares of Voting Stock of the
      Company representing 1% or more of the then-outstanding Voting Stock of the
      Company, other than in an acquisition directly from the Company that is approved
      by a majority of the Incumbent Directors or other than as a result of a stock
      dividend, stock split or similar transaction effected by the Company in which
      all holders of Voting Stock are treated equally, such subsequent acquisition
      shall be deemed to constitute a Change in Control;

     

    (C)  a
      Change
      in Control will not be deemed to have occurred if a Person acquires beneficial
      ownership of 20% or more of the Voting Stock of the Company as a result of
      a
      reduction in the number of shares of Voting Stock of the Company outstanding
      unless and until such Person thereafter becomes the beneficial owner of any
      additional shares of Voting Stock of the Company representing 1% or more of
      the
      then-outstanding Voting Stock of the Company, other than in an acquisition
      directly from the Company that is approved by a majority of the Incumbent
      Directors or other than as a result of a stock dividend, stock split or similar
      transaction effected by the Company in which all holders of Voting Stock are
      treated equally; and

     

    (D)  if
      at
      least a majority of the Incumbent Directors determine in good faith that a
      Person has acquired beneficial ownership of 20% or more of the Voting Stock
      of
      the Company inadvertently, and such Person divests as promptly as practicable
      a
      sufficient number of shares so that such Person beneficially owns less than
      20%
      of the Voting Stock of the Company, then no Change in Control shall have
      occurred as a result of such Person’s acquisition; or

     

    (ii)  a
      majority of the Directors are not Incumbent Directors; or

     

    (iii)  the
      consummation of a reorganization, merger or consolidation, or sale or other
      disposition of all or substantially all of the assets of the Company or the
      acquisition of assets of another corporation, or other transaction (each, a
      “Business Combination”), unless, in each case,
      immediately following such Business Combination (A) all or substantially
      all of the individuals and entities who were the beneficial owners of Voting
      Stock of the Company immediately prior to such Business Combination beneficially
      own, directly or indirectly, more than 60% of the combined voting power of
      the
      then outstanding shares of Voting Stock of the entity resulting from such
      Business Combination (including, without limitation, an entity which as a result
      of such transaction owns the Company or all or substantially all of the
      Company’s assets either directly or through one or more subsidiaries),
      (B) no Person (other than the Company, such entity resulting from such
      Business Combination, or any employee benefit plan (or related trust) sponsored
      or maintained by the Company, any Subsidiary or such entity resulting from
      such
      Business Combination) beneficially owns, directly or indirectly, 20% or more
      of
      the combined voting power of the then outstanding shares of Voting Stock of
      the
      entity

     

    
      
         

      

      
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    resulting
      from such Business Combination, and (C) at least a majority of the members
      of the Board of Directors of the entity resulting from such Business Combination
      were Incumbent Directors at the time of the execution of the initial agreement
      or of the action of the Board providing for such Business Combination;
      or

     

    (iv)  approval
      by the stockholders of the Company of a complete liquidation or dissolution
      of
      the Company, except pursuant to a Business Combination that complies with
      clauses (A), (B) and (C) of Section 1(a)(iii).

     

    (v)  For
      purposes of this Section 1(a) and as used elsewhere in this Agreement, the
      following terms shall have the following meanings:

     

    (A)  “Exchange
      Act” shall mean the Securities Exchange Act of 1934, as
      amended.

     

    (B)  “Incumbent
      Directors” means the individuals who, as of the date hereof, are
      Directors of the Company and any individual becoming a Director subsequent
      to
      the date hereof whose election, nomination for election by the Company’s
      stockholders, or appointment, was approved by a vote of at least two-thirds
      of
      the then Incumbent Directors (either by a specific vote or by approval of the
      proxy statement of the Company in which such person is named as a nominee for
      director, without objection to such nomination); provided,
however, that an individual shall not be an Incumbent Director
      if such
      individual’s election or appointment to the Board occurs as a result of an
      actual or threatened election contest (as described in Rule 14a-12(c) of
      the Exchange Act) with respect to the election or removal of Directors or other
      actual or threatened solicitation of proxies or consents by or on behalf of
      a
      Person other than the Board.

     

    (C)  “Subsidiary”
      means an entity in which the Company directly or indirectly beneficially owns
      50% or more of the outstanding Voting Stock.

     

    (D)  “Voting
      Stock” means securities entitled to vote generally in the election
      of directors (or similar governing bodies).

     

    (b)  “Claim”
      means, except as stated below, (i) any threatened or asserted (of which the
      Company or the Indemnitee has received notice), and any pending or completed
      claim, demand, action, suit or proceeding, whether civil, criminal,
      administrative, arbitrative, investigative or other, and whether made pursuant
      to federal, state or other law; and (ii) any threatened (of which the
      Company or Indemnitee has received notice), pending or completed inquiry or
      investigation, whether made, instituted or conducted by the Company or any
      other
      person, including without limitation any federal, state or other governmental
      entity, that Indemnitee determines might lead to the institution of any such
      claim, demand, action, suit or proceeding.  Notwithstanding the
      foregoing, in no event will the term “Claim” be deemed to include any Claim
      existing against Indemnitee prior to the date of this Agreement.

     

    (c)  “Controlled
      Affiliate” means any corporation, limited liability company,
      partnership, joint venture, trust or other entity or enterprise, whether or
      not
      for profit, that is directly or indirectly controlled by the
      Company.  For purposes of this definition, “control” means the
      possession, directly or indirectly, of the power to direct or cause the
      direction of the management or policies of an entity or enterprise, whether
      through the ownership of voting

     

    
      
         

      

      
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    securities,
      through other voting rights, by contract or otherwise; provided that
      direct or indirect beneficial ownership of capital stock or other interests
      in
      an entity or enterprise entitling the holder to cast 20% or more of the total
      number of votes generally entitled to be cast in the election of directors
      (or
      persons performing comparable functions) of such entity or enterprise shall
      be
      deemed to constitute control for purposes of this definition.

     

    (d)  “Disinterested
      Director” means a director of the Company who is not and was not a
      party to the Claim in respect of which indemnification is sought by
      Indemnitee.

     

    (e)  “Expenses”
      means attorneys’ and experts’ fees and expenses and all other costs and expenses
      paid or payable in connection with investigating, defending, being a witness
      in
      or participating in (including on appeal), or preparing to investigate, defend,
      be a witness in or participate in (including on appeal), any Claim.

     

    (f)  “Indemnifiable
      Claim” means any Claim based upon, arising out of
      or resulting from (i) any actual, alleged or suspected act or failure to
      act by Indemnitee in his or her capacity as an officer, employee or agent of
      the
      Company or as a director, officer, employee, member, manager, trustee or agent
      of any other corporation, limited liability company, partnership, joint venture,
      trust or other entity or enterprise, whether or not for profit, as to which
      Indemnitee is or was serving at the request of the Company as a director,
      officer, employee, member, manager, trustee or agent, (ii) any actual,
      alleged or suspected act or failure to act by Indemnitee in respect of any
      business, transaction, communication, filing, disclosure or other activity
      of
      the Company or any other entity or enterprise referred to in clause (i) of
      this sentence, or (iii) Indemnitee’s status as a current or former
      director, officer, employee or agent of the Company or as a current or former
      officer, employee, member, manager, trustee or agent of the Company or any
      other
      entity or enterprise referred to in clause (i) of this sentence or any
      actual, alleged or suspected act or failure to act by Indemnitee in connection
      with any obligation or restriction imposed upon Indemnitee by reason of such
      status.  In addition to any service at the actual request of the
      Company, for purposes of this Agreement, Indemnitee shall be deemed to be
      serving or to have served at the request of the Company as a director, officer,
      employee, member, manager, trustee or agent of another entity or enterprise
      if
      Indemnitee is or was serving as a director, officer, employee, member, manager,
      trustee or agent of such entity or enterprise and (i) such entity or
      enterprise is or at the time of such service was a Controlled Affiliate,
      (ii) such entity or enterprise is or at the time of such service was an
      employee benefit plan (or related trust) sponsored or maintained by the Company
      or a Controlled Affiliate, or (iii) the Company or a Controlled Affiliate
      directly or indirectly caused or authorized Indemnitee to be nominated, elected,
      appointed, designated, employed, engaged or selected to serve in such
      capacity.

     

    (g)  “Indemnifiable
      Losses” means any and all Losses relating to, arising out of or
      resulting from any Indemnifiable Claim.

     

    (h)  “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 been, retained to represent:  (i) the Company
      (or any Subsidiary) or Indemnitee in any matter material to either such party
      (other than with respect to matters concerning the Indemnitee under this
      Agreement, or of other indemnitees under similar indemnification agreements),
      or
      (ii) any other named (or, as to a threatened matter, reasonably likely to
      be named) party to the

     

    
      
         

      

      
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    Indemnifiable
      Claim 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 an action to determine
      Indemnitee’s rights under this Agreement.

     

    (i)  “Losses”
      means, except as stated below, any and all Expenses, damages, losses,
      liabilities, judgments, fines, penalties (whether civil, criminal or other)
      and
      amounts paid in settlement, including without limitation all interest,
      assessments and other charges paid or payable in connection with or in respect
      of any of the foregoing.  Notwithstanding the foregoing, in no event
      will the term “Losses” be deemed to include any Losses incurred by the
      Indemnitee prior to the date of this Agreement or relating to any Claim existing
      against Indemnitee prior to the date of this Agreement.

     

    2.  Indemnification
      Obligation.  Subject to Section 7, the Company shall
      indemnify, defend and hold harmless Indemnitee, to the fullest extent permitted
      or required by the laws of the State of North Carolina in effect on the date
      hereof or as such laws may from time to time hereafter be amended to increase
      the scope of such permitted indemnification, against any and all Indemnifiable
      Claims and Indemnifiable Losses; provided, however, that,
      except as provided in Sections 4 and 20, Indemnitee shall not be entitled
      to indemnification pursuant to this Agreement in connection with any Claim
      initiated by Indemnitee against the Company or any director or officer of the
      Company unless the Company has joined in or consented to the initiation of
      such
      Claim.

     

    3.  Advancement
      of Expenses.  Indemnitee shall have the right to advancement
      by the Company prior to the final disposition of any Indemnifiable Claim of
      any
      and all Expenses relating to, arising out of or resulting from any Indemnifiable
      Claim paid or incurred by Indemnitee or which Indemnitee determines are
      reasonably likely to be paid or incurred by Indemnitee.  Indemnitee’s
      right to such advancement is not subject to the satisfaction of any standard
      of
      conduct.  Without limiting the generality or effect of the foregoing,
      within five business days after any request by Indemnitee, the Company shall,
      in
      accordance with such request (but without duplication), (a) pay such
      Expenses on behalf of Indemnitee, (b) advance to Indemnitee funds in an
      amount sufficient to pay such Expenses, or (c) reimburse Indemnitee for such
      Expenses; provided that Indemnitee shall repay, without interest any
      amounts actually advanced to Indemnitee that, at the final disposition of the
      Indemnifiable Claim to which the advance related, were in excess of amounts
      paid
      or payable by Indemnitee in respect of Expenses relating to, arising out of
      or
      resulting from such Indemnifiable Claim.  In connection with any such
      payment, advancement or reimbursement, Indemnitee shall execute and deliver
      to
      the Company an undertaking, which need not be secured and shall be accepted
      without reference to Indemnitee’s ability to repay the Expenses, by or on behalf
      of the Indemnitee, to repay any amounts paid, advanced or reimbursed by the
      Company in respect of Expenses relating to, arising out of or resulting from
      any
      Indemnifiable Claim in respect of which it shall have been determined, following
      the final disposition of such Indemnifiable Claim and in accordance with
      Section 7, that Indemnitee is not entitled to indemnification
      hereunder.

     

    4.  Indemnification
      for Additional Expenses.  Without limiting the generality or
      effect of the foregoing, the Company shall indemnify and hold harmless
      Indemnitee against and, if requested by Indemnitee, shall reimburse Indemnitee
      for, or advance to Indemnitee, within five

     

    
      
         

      

      
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    business
      days of such request, any and all Expenses paid or incurred by Indemnitee or
      which Indemnitee determines are reasonably likely to be paid or incurred by
      Indemnitee in connection with any Claim made, instituted or conducted by
      Indemnitee for (a) indemnification or reimbursement or advance payment of
      Expenses by the Company under any provision of this Agreement, or under any
      other agreement or provision of the Constituent Documents now or hereafter
      in
      effect relating to Indemnifiable Claims, and/or (b) recovery under any
      directors’ and officers’ liability insurance policies maintained by the Company,
      regardless in each case of whether Indemnitee ultimately is determined to be
      entitled to such indemnification, reimbursement, advance or insurance recovery,
      as the case may be; provided, however, that Indemnitee shall
      return, without interest, any such advance of Expenses (or portion thereof)
      which remains unspent at the final disposition of the Claim to which the advance
      related.

     

    5.  Partial
      Indemnity.  If Indemnitee is entitled under any provision of
      this Agreement to indemnification by the Company for some or a portion of any
      Indemnifiable Loss, but not for all of the total amount thereof, the Company
      shall nevertheless indemnify Indemnitee for the portion thereof to which
      Indemnitee is entitled.

     

    6.  Procedure
      for Notification.  To obtain indemnification under this
      Agreement in respect of an Indemnifiable Claim or Indemnifiable Loss, Indemnitee
      shall submit to the Company a written request therefor, including a brief
      description (based upon information then available to Indemnitee) of such
      Indemnifiable Claim or Indemnifiable Loss.  If, at the time of the
      receipt of such request, the Company has directors’ and officers’ liability
      insurance in effect under which coverage for such Indemnifiable Claim or
      Indemnifiable Loss is potentially available, the Company shall give prompt
      written notice of such Indemnifiable Claim or Indemnifiable Loss to the
      applicable insurers in accordance with the procedures set forth in the
      applicable policies.  The Company shall provide to Indemnitee a copy
      of such notice delivered to the applicable insurers, and copies of all
      subsequent correspondence between the Company and such insurers regarding the
      Indemnifiable Claim or Indemnifiable Loss, in each case substantially
      concurrently with the delivery or receipt thereof by the Company.  The
      failure by Indemnitee to timely notify the Company of any Indemnifiable Claim
      or
      Indemnifiable Loss shall not relieve the Company from any liability hereunder
      unless, and only to the extent that, the Company did not otherwise learn of
      such
      Indemnifiable Claim or Indemnifiable Loss and such failure results in forfeiture
      by the Company of substantial defenses, rights or insurance
      coverage.

     

    7.  Determination
      of Right to Indemnification.

     

    (a)  To
      the
      extent that Indemnitee shall have been successful on the merits or otherwise
      in
      defense of any Indemnifiable Claim or any portion thereof or in defense of
      any
      issue or matter therein, including without limitation dismissal without
      prejudice, Indemnitee shall be indemnified against all Indemnifiable Losses
      relating to, arising out of or resulting from such Indemnifiable Claim in
      accordance with Section 2 and no Standard of Conduct Determination (as
      defined in Section 7(b)) shall be required.

     

    (b)  To
      the
      extent that the provisions of Section 7(a) are inapplicable to an
      Indemnifiable Claim that shall have been finally disposed of, any determination
      of whether Indemnitee has satisfied any applicable standard of conduct under
      North Carolina law that is a legally required condition precedent to
      indemnification of Indemnitee hereunder against Indemnifiable Losses relating
      to, arising out of or resulting from such Indemnifiable Claim (a

     

    
      
         

      

      
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    “Standard
      of Conduct Determination”) shall be made as
      follows:  (i) if a Change in Control shall not have occurred, or
      if a Change in Control shall have occurred but Indemnitee shall have requested
      that the Standard of Conduct Determination be made pursuant to this clause
      (i),
      (A) by a majority vote of the Disinterested Directors, even if less than a
      quorum of the Board, (B) if such Disinterested Directors so direct, by a
      majority vote of a committee of Disinterested Directors designated by a majority
      vote of all Disinterested Directors, or (C) if there are no such
      Disinterested Directors, by Independent Counsel in a written opinion addressed
      to the Board, a copy of which shall be delivered to Indemnitee; and (ii) if
      a Change in Control shall have occurred and Indemnitee shall not have requested
      that the Standard of Conduct Determination be made pursuant to clause (i),
      by Independent Counsel in a written opinion addressed to the Board, a copy
      of
      which shall be delivered to Indemnitee.  Indemnitee will cooperate
      with the person or persons making such Standard of Conduct Determination,
      including providing to such person or persons, upon reasonable advance request,
      any documentation or information which is not privileged or otherwise protected
      from disclosure and which is reasonably available to Indemnitee and reasonably
      necessary to such determination.  The Company shall indemnify and hold
      harmless Indemnitee against and, if requested by Indemnitee, shall reimburse
      Indemnitee for, or advance to Indemnitee, within five business days of such
      request, any and all costs and expenses (including attorneys’ and experts’ fees
      and expenses) incurred by Indemnitee in so cooperating with the person or
      persons making such Standard of Conduct Determination.

     

    (c)  The
      Company shall use its reasonable best efforts to cause any Standard of Conduct
      Determination required under Section 7(b) to be made as promptly as
      practicable.  If (i) the person or persons empowered or selected
      under Section 7 to make the Standard of Conduct Determination shall not
      have made a determination within 30 days after the later of
      (A) receipt by the Company of written notice from Indemnitee advising the
      Company of the final disposition of the applicable Indemnifiable Claim (the
      date
      of such receipt being the “Notification Date”) and
      (B) the selection of an Independent Counsel, if such determination is to be
      made by Independent Counsel, that is permitted under the provisions of
      Section 7(e) to make such determination and (ii) Indemnitee shall have
      fulfilled his/her obligations set forth in the second sentence of
      Section 7(b), then Indemnitee shall be deemed to have satisfied the
      applicable standard of conduct; provided that such 30-day period may be
      extended for a reasonable time, not to exceed an additional 30 days, if the
      person or persons making such determination in good faith requires such
      additional time for the obtaining or evaluation or documentation and/or
      information relating thereto.

     

    (d)  If
      (i) Indemnitee shall be entitled to indemnification hereunder against any
      Indemnifiable Losses pursuant to Section 7(a), (ii) no determination
      of whether Indemnitee has satisfied any applicable standard of conduct under
      North Carolina law is a legally required condition precedent to indemnification
      of Indemnitee hereunder against any Indemnifiable Losses, or
      (iii) Indemnitee has been determined or deemed pursuant to
      Section 7(b) or (c) to have satisfied any applicable standard of conduct
      under North Carolina law which is a legally required condition precedent to
      indemnification of Indemnitee hereunder against any Indemnifiable Losses, then
      the Company shall pay to Indemnitee, within five business days after the later
      of (x) the Notification Date in respect of the Indemnifiable Claim or
      portion thereof to which such Indemnifiable Losses are related, out of which
      such Indemnifiable Losses arose or from which such Indemnifiable Losses resulted
      and (y) the earliest date on which the applicable criterion specified in
      clause (i), (ii) or (iii) above shall have been satisfied, an amount equal
      to
      the amount of such Indemnifiable Losses.

     

    
      
         

      

      
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    (e)  If
      a
      Standard of Conduct Determination is to be made by Independent Counsel pursuant
      to Section 7(b)(i), the Independent Counsel shall be selected by the Board
      of Directors, and the Company shall give written notice to Indemnitee advising
      him or her of the identity of the Independent Counsel so selected.  If
      a Standard of Conduct Determination is to be made by Independent Counsel
      pursuant to Section 7(b)(ii), the Independent Counsel shall be selected by
      Indemnitee, and Indemnitee shall give written notice to the Company advising
      it
      of the identity of the Independent Counsel so selected.  In either
      case, Indemnitee or the Company, as applicable, may, within five business days
      after receiving written notice of selection from the other, deliver to the
      other
      a written objection to such selection; provided, however, that
      such objection may be asserted only on the ground that the Independent Counsel
      so selected does not satisfy the criteria set forth in the definition of
“Independent Counsel” in Section 1(h), and the objection shall set forth
      with particularity the factual basis of such assertion.  Absent a
      proper and timely objection, the person or firm so selected shall act as
      Independent Counsel.  If such written objection is properly and timely
      made and substantiated, (i) the Independent Counsel so selected may not
      serve as Independent Counsel unless and until such objection is withdrawn or
      a
      court has determined that such objection is without merit and (ii) the
      non-objecting party may, at its option, select an alternative Independent
      Counsel and give written notice to the other party advising such other party
      of
      the identity of the alternative Independent Counsel so selected, in which case
      the provisions of the two immediately preceding sentences and clause (i) of
      this sentence shall apply to such subsequent selection and notice.  If
      applicable, the provisions of clause (ii) of the immediately preceding
      sentence shall apply to successive alternative selections.  If no
      Independent Counsel that is permitted under the foregoing provisions of this
      Section 7(e) to make the Standard of Conduct Determination shall have been
      selected within 30 days after the Company gives its initial notice pursuant
      to the first sentence of this Section 7(e) or Indemnitee gives its initial
      notice pursuant to the second sentence of this Section 7(e), as the case
      may be, either the Company or Indemnitee may petition the courts of the State
      of
      North Carolina for resolution of any objection which shall have been made by
      the
      Company or Indemnitee to the other’s selection of Independent Counsel and/or for
      the appointment as Independent Counsel of a person or firm selected by the
      Court
      or by such other person as the Court shall designate, and the person or firm
      with respect to whom all objections are so resolved or the person or firm so
      appointed will act as Independent Counsel.  In all events, the Company
      shall pay all of the reasonable fees and expenses of the Independent Counsel
      incurred in connection with the Independent Counsel’s determination pursuant to
      Section 7(b).

     

    8.  Presumption
      of Entitlement.  In making any Standard of Conduct
      Determination, the person or persons making such determination shall presume
      that Indemnitee has satisfied the applicable standard of conduct, and the
      Company may overcome such presumption only by its adducing clear and convincing
      evidence to the contrary.  Any Standard of Conduct Determination that
      is adverse to Indemnitee may be challenged by the Indemnitee in the courts
      of
      the State of North Carolina.  No determination by the Company
      (including by its directors or any Independent Counsel) that Indemnitee has
      not
      satisfied any applicable standard of conduct shall be a defense to any Claim
      by
      Indemnitee for indemnification or reimbursement or advance payment of Expenses
      by the Company hereunder or create a presumption that Indemnitee has not met
      any
      applicable standard of conduct.

     

    9.  No
      Other Presumption.  For purposes of this Agreement, the
      termination of any Claim by judgment, order, settlement (whether with or without
      court approval) or conviction, or upon a plea of nolo contendere or its
      equivalent, will not create a presumption that Indemnitee

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    did
      not
      meet any applicable standard of conduct or that indemnification hereunder is
      otherwise not permitted.

     

    10.  Non-Exclusivity.  The
      rights of Indemnitee hereunder will be in addition to any other rights
      Indemnitee may have under the Constituent Documents, or the substantive laws
      of
      the Company’s jurisdiction of incorporation, any other contract or otherwise
      (collectively, “Other Indemnity Provisions”);
provided, however, that (a) to the extent that Indemnitee
      otherwise would have any greater right to indemnification under any Other
      Indemnity Provision, Indemnitee will be deemed to have such greater right
      hereunder and (b) to the extent that any change is made to any Other
      Indemnity Provision which permits any greater right to indemnification than
      that
      provided under this Agreement as of the date hereof, Indemnitee will be deemed
      to have such greater right hereunder.  The Company will not adopt any
      amendment to any of the Constituent Documents the effect of which would be
      to
      deny, diminish or encumber Indemnitee’s right to indemnification under this
      Agreement or any Other Indemnity Provision.

     

    11.  Liability
      Insurance and Funding.  For the duration of Indemnitee’s
      service as a director and/or officer of the Company, and thereafter for so
      long
      as Indemnitee shall be subject to any pending or possible Indemnifiable Claim,
      the Company shall use commercially reasonable efforts (taking into account
      the
      scope and amount of coverage available relative to the cost thereof) to cause
      to
      be maintained in effect policies of directors’ and officers’ liability insurance
      providing coverage for directors and/or officers of the Company that is at
      least
      substantially comparable in scope and amount to that provided by the Company’s
      current policies of directors’ and officers’ liability insurance.  The
      Company shall provide Indemnitee with a copy of all directors’ and officers’
liability insurance applications, binders, policies, declarations, endorsements
      and other related materials, and shall provide Indemnitee with a reasonable
      opportunity to review and comment on the same.  Without limiting the
      generality or effect of the two immediately preceding sentences, the Company
      shall not discontinue or significantly reduce the scope or amount of coverage
      from one policy period to the next (i)  without the prior approval thereof
      by a majority vote of the Incumbent Directors, even if less than a quorum,
      or
      (ii) if at the time that any such discontinuation or significant reduction
      in the scope or amount of coverage is proposed there are no Incumbent Directors,
      without the prior written consent of Indemnitee (which consent shall not be
      unreasonably withheld or delayed).  In all policies of directors’ and
      officers’ liability insurance obtained by the Company, Indemnitee shall be named
      as an insured in such a manner as to provide Indemnitee the same rights and
      benefits, subject to the same limitations, as are accorded to the Company’s
      directors and officers most favorably insured by such policy.  The
      Company may, but shall not be required to, create a trust fund, grant a security
      interest or use other means, including without limitation a letter of credit,
      to
      ensure the payment of such amounts as may be necessary to satisfy its
      obligations to indemnify and advance expenses pursuant to this
      Agreement.

     

    12.  Subrogation.  In
      the event of payment under this Agreement, the Company shall be subrogated
      to
      the extent of such payment to all of the related rights of recovery of
      Indemnitee against other persons or entities (other than Indemnitee’s
      successors), including any entity or enterprise referred to in clause (i) of
      the
      definition of “Indemnifiable Claim” in Section 1(f).  Indemnitee
      shall execute all papers reasonably required to evidence such rights (all of
      Indemnitee’s reasonable Expenses, including attorneys’ fees and charges, related
      thereto to be reimbursed by or, at the option of Indemnitee, advanced by the
      Company).

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

     

    13.  No
      Duplication of Payments.  The Company shall not be liable
      under this Agreement to make any payment to Indemnitee in respect of any
      Indemnifiable Losses to the extent Indemnitee has otherwise actually received
      payment (net of Expenses incurred in connection therewith) under any insurance
      policy, the Constituent Documents and Other Indemnity Provisions or otherwise
      (including from any entity or enterprise referred to in clause (i) of the
      definition of “Indemnifiable Claim” in Section 1(f)) in respect of such
      Indemnifiable Losses otherwise indemnifiable hereunder.

     

    14.  Defense
      of Claims.  The Company shall be entitled to participate in
      the defense of any Indemnifiable Claim or to assume the defense thereof, with
      counsel reasonably satisfactory to the Indemnitee; provided that if
      Indemnitee believes, after consultation with counsel selected by Indemnitee,
      that (a) the use of counsel chosen by the Company to represent Indemnitee
      would present such counsel with an actual or potential conflict, (b) the
      named parties in any such Indemnifiable Claim (including any impleaded parties)
      include both the Company and Indemnitee and Indemnitee shall conclude that
      there
      may be one or more legal defenses available to him or her that are different
      from or in addition to those available to the Company, or (c) any such
      representation by such counsel would be precluded under the applicable standards
      of professional conduct then prevailing, then Indemnitee shall be entitled
      to
      retain separate counsel (but not more than one law firm plus, if applicable,
      local counsel in respect of any particular Indemnifiable Claim) at the Company’s
      expense.  The Company shall not be liable to Indemnitee under this
      Agreement for any amounts paid in settlement of any threatened or pending
      Indemnifiable Claim effected without the Company’s prior written
      consent.  The Company shall not, without the prior written consent of
      the Indemnitee, effect any settlement of any threatened or
      pending Indemnifiable Claim to which the Indemnitee is, or could have been,
      a party unless such settlement solely involves the payment of money and includes
      a complete and unconditional release of the Indemnitee from all liability on
      any
      claims that are the subject matter of such Indemnifiable
      Claim.  Neither the Company nor Indemnitee shall unreasonably withhold
      its consent to any proposed settlement; provided that Indemnitee may
      withhold consent to any settlement that does not provide a complete and
      unconditional release of Indemnitee.

     

    15.  Successors
      and Binding Agreement.

     

    (a)           The
      Company shall require any successor (whether direct or indirect, by purchase,
      merger, consolidation, reorganization or otherwise) to all or substantially
      all
      of the business or assets of the Company, by agreement in form and substance
      satisfactory to Indemnitee and his or her counsel, expressly to assume and
      agree
      to perform this Agreement in the same manner and to the same extent the Company
      would be required to perform if no such succession had taken
      place.  This Agreement shall be binding upon and inure to the benefit
      of the Company and any successor to the Company, including without limitation
      any person acquiring directly or indirectly all or substantially all of the
      business or assets of the Company whether by purchase, merger, consolidation,
      reorganization or otherwise (and such successor will thereafter be deemed the
      “Company” for purposes of this Agreement), but shall
      not otherwise be assignable or delegatable by the Company.

     

    (b)  This
      Agreement shall inure to the benefit of and be enforceable by the Indemnitee’s
      personal or legal representatives, executors, administrators, heirs,
      distributees, legatees and other successors.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    

     

    (c)   This
      Agreement is personal in nature and neither of the parties hereto shall, without
      the consent of the other, assign or delegate this Agreement or any rights or
      obligations hereunder except as expressly provided in Sections 15(a) and
      15(b).  Without limiting the generality or effect of the foregoing,
      Indemnitee’s right to receive payments hereunder shall not be assignable,
      whether by pledge, creation of a security interest or otherwise, other than
      by a
      transfer by the Indemnitee’s will or by the laws of descent and distribution,
      and, in the event of any attempted assignment or transfer contrary to this
      Section 15(c), the Company shall have no liability to pay any amount so
      attempted to be assigned or transferred.

     

    16.  Notices.  For
      all purposes of this Agreement, all communications, including without limitation
      notices, consents, requests or approvals, required or permitted to be given
      hereunder shall be in writing and shall be deemed to have been duly given when
      hand delivered or dispatched by electronic facsimile transmission (with receipt
      thereof electronically confirmed), or five business days after having been
      mailed by United States registered or certified mail, return receipt requested,
      postage prepaid or one business day after having been sent for next-day delivery
      by a nationally recognized overnight courier service, addressed to the Company
      (to the attention of the Secretary of the Company) and to Indemnitee at the
      applicable address shown on the signature page hereto, or to such other address
      as any party may have furnished to the other in writing and in accordance
      herewith, except that notices of changes of address will be effective only
      upon
      receipt.

     

    17.  Governing
      Law.  The validity, interpretation, construction and
      performance of this Agreement shall be governed by and construed in accordance
      with the substantive laws of the State of North Carolina, without giving effect
      to the principles of conflict of laws of such State.  The Company and
      Indemnitee each hereby irrevocably consent to the jurisdiction of the courts
      of
      the State of North Carolina for all purposes in connection with any action
      or
      proceeding which arises out of or relates to this Agreement and agree that
      any
      action instituted under this Agreement shall be brought only in the courts
      of
      the State of North Carolina.  As used in this Agreement, references to
“the courts of the State of North Carolina” will mean the North Carolina
      Business Court or such other North Carolina court as may succeed the North
      Carolina Business Court as a forum for cases involving issues of corporate
      and
      commercial law.  In the event that the North Carolina Business Court
      is abolished without a successor, references to “the courts of the State of
      North Carolina” will mean either the Superior Court of Forsyth County, North
      Carolina or the United States District Court for the Middle District of North
      Carolina.

     

    18.  Validity.  If
      any provision of this Agreement or the application of any provision hereof
      to
      any person or circumstance is held invalid, unenforceable or otherwise illegal,
      the remainder of this Agreement and the application of such provision to any
      other person or circumstance shall not be affected, and the provision so held
      to
      be invalid, unenforceable or otherwise illegal shall be reformed to the extent,
      and only to the extent, necessary to make it enforceable, valid or
      legal.  In the event that any court or other adjudicative body shall
      decline to reform any provision of this Agreement held to be invalid,
      unenforceable or otherwise illegal as contemplated by the immediately preceding
      sentence, the parties thereto shall take all such action as may be necessary
      or
      appropriate to replace the provision so held to be invalid, unenforceable or
      otherwise illegal with one or more alternative provisions that effectuate the
      purpose and intent of the original provisions of this Agreement as fully as
      possible without being invalid, unenforceable or otherwise illegal.

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    

     

    19.  Miscellaneous.  No
      provision of this Agreement may be waived, modified or discharged unless such
      waiver, modification or discharge is agreed to in writing signed by Indemnitee
      and the Company.  No waiver by either party hereto at any time of any
      breach by the other party hereto or compliance with any condition or provision
      of this Agreement to be performed by such other party shall be deemed a waiver
      of similar or dissimilar provisions or conditions at the same or at any prior
      or
      subsequent time.  No agreements or representations, oral or otherwise,
      expressed or implied with respect to the subject matter hereof have been made
      by
      either party that are not set forth expressly in this
      Agreement.  References to Sections are to references to Sections of
      this Agreement.

     

    20.  Legal
      Fees and Expenses.  It is the intent of the Company that
      Indemnitee not be required to incur legal fees and or other Expenses associated
      with the interpretation, enforcement or defense of Indemnitee’s rights under
      this Agreement by litigation or otherwise because the cost and expense thereof
      would substantially detract from the benefits intended to be extended to
      Indemnitee hereunder.  Accordingly, without limiting the generality or
      effect of any other provision hereof, if it should appear to Indemnitee that
      the
      Company has failed to comply with any of its obligations under this Agreement
      or
      in the event that the Company or any other person takes or threatens to take
      any
      action to declare this Agreement void or unenforceable, or institutes any
      litigation or other action or proceeding designed to deny, or to recover from,
      Indemnitee the benefits provided or intended to be provided to Indemnitee
      hereunder, the Company irrevocably authorizes the Indemnitee from time to time
      to retain counsel of Indemnitee’s choice, at the expense of the Company as
      hereafter provided, to advise and represent Indemnitee in connection with any
      such interpretation, enforcement or defense, including without limitation the
      initiation or defense of any litigation or other legal action, whether by or
      against the Company or any director, officer, stockholder or other person
      affiliated with the Company, in any jurisdiction.  Notwithstanding any
      existing or prior attorney-client relationship between the Company and such
      counsel, the Company irrevocably consents to Indemnitee’s entering into an
      attorney-client relationship with such counsel, and in that connection the
      Company and Indemnitee agree that a confidential relationship shall exist
      between Indemnitee and such counsel.  Without respect to whether
      Indemnitee prevails, in whole or in part, in connection with any of the
      foregoing, the Company will pay and be solely financially responsible for any
      and all attorneys’ and related fees and expenses incurred by Indemnitee in
      connection with any of the foregoing.

     

    21.  Certain
      Interpretive Matters.  Unless the context of this Agreement
      otherwise requires, (a) “it” or “its” or words of any gender include each
      other gender, (b) words using the singular or plural number also include
      the plural or singular number, respectively, (c) the terms “hereof,”
“herein,” “hereby” and derivative or similar words refer to this entire
      Agreement, (d) the terms “Article,” “Section,” “Annex” or “Exhibit” refer
      to the specified Article, Section, Annex or Exhibit of or to this Agreement,
      (e) the terms “include,” “includes” and “including” will be deemed to be
      followed by the words “without limitation” (whether or not so expressed), and
      (f) the word “or” is disjunctive but not exclusive.  Whenever
      this Agreement refers to a number of days, such number will refer to calendar
      days unless business days are specified and whenever action must be taken
      (including the giving of notice or the delivery of documents) under this
      Agreement during a certain period of time or by a particular date that ends
      or
      occurs on a non-business day, then such period or date will be extended until
      the immediately following business day.  As used herein, “business
      day” means any day other than Saturday, Sunday or a United States federal
      holiday.

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    

     

    22.  Counterparts.  This
      Agreement may be executed in one or more counterparts, each of which will be
      deemed to be an original but all of which together shall constitute one and
      the
      same agreement.

     

    23.  Prospective
      Effect.  Notwithstanding anything to the contrary contained
      anywhere in this Agreement, in no event will this Agreement be deemed to apply
      to any Claim existing against Indemnitee prior to the date of this Agreement,
      any Losses incurred by Indemnitee prior to the date of this Agreement, or any
      Losses relating to any Claim existing against Indemnitee prior to the date
      of
      this Agreement.

     

    

     

    [Signatures
      Appear On Following Page]

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    

    IN
      WITNESS WHEREOF, Indemnitee has executed and the Company has caused its duly
      authorized representative to execute this Agreement as of the date first above
      written.

     

     

    

    
      	
              KRISPY
                KREME DOUGHNUTS, INC.

            
	
              370
                Knollwood Street, Suite 500

            
	
              Winston-Salem,
                NC  27103

            
	 
	 
	
              By: 
                ____________________________________

            
	
              Name:
                __________________________________

            
	
              Title: 
                ___________________________________

            
	 
	 
	
              Indemnitee
                Name

            
	
              Address

            
	
              Address

            
	 
	 
	 ___________________________________________________________
	
                          Indemnitee
                Name

            

    

     

    

     

     

     

     

     

     

    15firepond10_35.htm

    LEASE

    

    ARTICLE
      1 - REFERENCE DATA

    

    1.1           Subjects
      Referred To

    

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

    

    
      	
              DATE:

            	
              June
                22, 2007

            

    

    

    
      	
              LANDLORD:

            	
              Atlantic-Philadelphia
                Realty LLC

            

    

    LANDLORD

    
      	
              ADDRESS:

            	
              c/o
                Atlantic Management Corporation

            

    

    
      	
               

            	
              205
                Newbury Street

            

    

    
      	
               

            	
              Framingham,
                Massachusetts 01701

            

    

    

    
      	
              BUILDING:

            	
              The
                building situated on Newbury Street, Framingham, Middlesex County,
                Massachusetts, known as #205 Newbury Street (the "Premises"), upon
                the Lot
                (the "Lot") more particularly described on Exhibit A attached hereto
                and
                made a part hereof.

            

    

    

    
      	
              TENANT:

            	
              Firepond,
                Inc.

            

    

    

    
      	
              TENANT
                SPACE:

            	
              Those
                premises to be used as OFFICE SPACE located on
                the   second (2nd) floor of the Premises, as shown on floor
                plan attached here to as Exhibit B.

            

    

    

    RENTABLE
      FLOOR                                                      4,467
rentable square feet

    AREA
      OF TENANT

    
      	
               

            	
              SPACE:

            

    

    

    TOTAL
      RENTABLE

    FLOOR
      AREA OF

    
      	
              THE
                BUILDING:

            	
              56,865
                square feet

            

    

    

    TENANT'S

    PROPORTIONATE                                                                7.8%

    
      	
               

            	
              SHARE:

            

    

    

    
      	
              TERM:

            	
              Three
                (3) Years

            

    

    

                                                        

    
      	
              
                
                  RENT
                    AND TERM

                  COMMENCEMENT  DATE:

                

              

            	
               

              September
                1, 2007

            

    

    

    
      	
              OCCUPANCY
                DATE:

            	
              July
                1, 2007

            

    

     

    
      	
              TERMINATION DATE:

            	 June 30, 2010

    

     

    
      	
              ANNUAL
                FIXED RENT:

            	
              The
                sum of $20.50/Sq.Ft., which equates to an Annual Fixed Rent of
                $91,573.50 per
                annum.

            

    

     

    
      	
              MONTHLY
                FIXED RENT:

            	
              Tenant
                shall pay the Annual Fixed Rent as
                follows:

            

    

    

    
      	
              Lease
                Year

            	
              Annual
                Rent

            	
              Monthly
                Rent

            

    

    
      	 7/1/07-6/30/08	 $92,990.22	 $7,749.18

      	
              7/1/08-6/30/09

            	
              $97,457.22

            	
              $8,121.43

            

    

    
      	
              7/1/09-6/30/10

            	
              $101,924.22

            	
              $8,493.85

            

    

    
      	
               

            	
               All
                such monthly installments are due on or before the fist day of each
                month,
                beginning with the first payment due on the Commencement
                Date.

            

    

    

    
      	
              OPTION:

            	
              Tenant
                shall have one (1) option to extend the term of this Lease for an
                additional three years.

            

    

    

    
      	
              SECURITY
                DEPOSIT:

            	
              Tenant
                shall deposit the sum equal to one month’s rent, or $7,631.12, which shall
                be held by Landlord as a Security Deposit.  Said deposit shall
                be held by Landlord in a non-interest bearing account and shall be
                due and
                payable by Tenant upon execution of this
                Lease.

            

    

    

    BASE
      YEAR
      FOR                                                      2007

    CALCULATING

    LANDLORD'S

    OPERATING

    
      	
              
                EXPENSE:

              

            	
               

            

    

    

    BASE
      YEAR
      FOR                                                      Fiscal
      year 2007

    CALCULATING

    LANDLORD'S

    TAX

    EXPENSE:

    

    
      	
              PERMITTED
                USES:

            	
              General
                Office Space

            

    

    

    PUBLIC
      LIABILITY

    INSURANCE
      BODILY

    
      	
              INJURY:

            	
              $1,000,000
                Combined Single Limit Coverage

            

    

    

    
      	
              BROKER:

            	
              R.W.
                Holmes Realty Co., Inc.

            

    

    

    
      	
              SIGNAGE:

            	
              Tenant
                will be allowed a sign on the entrance door to the Premises, and
                on the
                building directory in the lobby

            

    

    

    
      	
              PARKING:

            	
              Tenant
                will receive 3.8 parking spaces per 1,000 square feet of rented space,
                or
                17 parking spaces, on a first come first serve
                basis.

            

    

    

    
      	
              BUILDING
                HOURS:

            	
              Monday
                through Friday 7:00 AM to 6:00 PM

            

    

    
      	
               

            	
              Saturday
                8:00 AM to 1:00 PM

            

    

    1.2           Exhibits

    

    The
      Exhibits listed below in this
      Section 1.2 are incorporated in this Lease by reference and are to be construed
      as part of this Lease:

    

    Exhibit
      A  -  Description of Lot

    Exhibit
      B  -  Floor
      Plan Showing Tenant's Space

    Exhibit
      C  -  Landlord's Services

    Exhibit
      D  -  Rules
      and Regulations

    Exhibit
      E  -  Estoppel Certificate

    Exhibit
      F
      -   Description of Landlord’s Work

    

    1.3           Table
      of Contents by Article and Section:

    

    
      	
              1.

            	
              Reference
                Data

            

    

    
      	
               

            	
              1.1

            	
              Subjects
                Referred To

            

    

    
      	
               

            	
              1.2

            	
              Exhibits

            

    

    
      	
               

            	
              1.3

            	
              Table
                of Contents

            

    

    

    
      	
              2.

            	
              Premises
                and Term

            

    

    
      	
               

            	
              2.1

            	
              Premises

            

    

    
      	
               

            	
              2.2

            	
              Common
                Facilities

            

    

    
      	
               

            	
              2.3

            	
              Landlord's
                Reservations

            

    

    
      	
               

            	
              2.4

            	
              Term

            

    

    
      	
               

            	
              2.5

            	
              Option
                to Renew

            

    

    2.6        Holdover
      Penalty

    

    
      	
              3.

            	
              Alteration

            

    

    
      	
               

            	
              3.1

            	
              Preparation
                of Premises for Occupancy

            

    

    
      	
               

            	
              3.2

            	
              Tenant
                Changes and Additions

            

    

    
      	
               

            	
              3.3

            	
              General
                Provisions Applicable to
                Construction

            

    

    

    
      	
              4.

            	
              Rent

            

    

    
      	
               

            	
              4.1

            	
              Fixed
                Rent

            

    

    
      	
               

            	
              4.2

            	
              Operating
                Expenses Including Real Estate
                Taxes

            

    

    
      	
               

            	
              4.3

            	
              Lot

            

    

    
      	
               

            	
              4.4

            	
              Accounting

            

    

    
      	
               

            	
              4.5

            	
              Payment
                of Additional Rent

            

    

    

    
      	
              5.

            	
              Landlord's
                Covenants

            

    

    
      	
               

            	
              5.1

            	
              Landlord's
                Covenants

            

    

    
      	
               

            	
              5.2

            	
              Interruptions

            

    

    

    
      	
              6.

            	
              Tenant's
                Covenants

            

    

    
      	
               

            	
              6.1

            	
              Tenant's
                Covenants

            

    

    

    
      	
              7.

            	
              Casualty
                and Taking

            

    

    
      	
               

            	
              7.1

            	
              Casualty
                and Taking

            

    

    
      	
               

            	
              7.2

            	
              Reservations
                of Award

            

    

    

    

    
      	
              8.

            	
              Right
                of Mortgage

            

    

    
      	
               

            	
              8.1

            	
              Subordination

            

    

    
      	
               

            	
              8.2

            	
              Entry
                Other Than For Foreclosure

            

    

    
      	
               

            	
              8.3

            	
              Entry
                For Foreclosure

            

    

    
      	
               

            	
              8.4

            	
              No
                Prepayment

            

    

    
      	
               

            	
              8.5

            	
              No
                Release or Termination

            

    

    
      	
               

            	
              8.6

            	
              No
                Modification, Etc.

            

    

    
      	
               

            	
              8.7

            	
              Continuing
                Offer

            

    

    
      	
               

            	
              8.8

            	
              Implementation

            

    

    
      	
               

            	
              8.9

            	
              Financing

            

    

    

    
      	
              9.

            	
              Defaults

            

    

    
      	
               

            	
              9.1

            	
              Events
                of Default

            

    

    
      	
               

            	
              9.2

            	
              Tenant's
                Obligations After Termination

            

    

    
      	
               

            	
              9.3

            	
              Landlord's
                Default

            

    

    

    
      	
              10.

            	
              Miscellaneous

            

    

    
      	
               

            	
              10.1

            	
              Measurement

            

    

    
      	
               

            	
              10.2

            	
              Titles

            

    

    
      	
               

            	
              10.3

            	
              Notice
                of Lease

            

    

    
      	
               

            	
              10.4

            	
              Consent

            

    

    
      	
               

            	
              10.5

            	
              Notice

            

    

    
      	
               

            	
              10.6

            	
              Bind
                and Inure

            

    

    
      	
               

            	
              10.7

            	
              No
                Surrender

            

    

    
      	
               

            	
              10.8

            	
              No
                Waiver, Etc.

            

    

    
      	
               

            	
              10.9

            	
              No
                Accord and Satisfaction

            

      	 	10.10	Cumulative
              Remedies

      	 	10.11 	Partial
              Invalidity

      	 	10.12	Landlord's
              Rights to Cure Tenant's Default

      	 	10.13 	Estoppel
              Certificate

      	 	10.14	Waiver
              of Subrogation

      	 	10.15	Brokerage

      	 	10.16 	 Security
              Deposit    

      	 	 	 

      	 	 	 

      	 	 	 

    

    
      	
              11.

            	
              Arbitration

            

    

    

    

    ARTICLE
      2 -  PREMISES AND TERM

    

    
      	
              2.1

            	
              Premises

            

    

    

    

    Landlord
      hereby leases to Tenant,
      subject to and with the benefit of the provisions of this Lease, Tenant's Space
      in the Building on the Lot referred to in Section 4.3 below and described in
      Exhibit A, excluding exterior faces of exterior walls, the common stairways,
      stairwells, elevators and elevator wells, and pipes, ducts, conduits, wires
      and
      appurtenant fixtures serving exclusively or in common other parts of the
      Building, and if Tenant's space includes less than the entire rentable area
      of
      any floor, excluding the central core area of such floor. Tenant's Space, with
      said exclusions, is hereinafter sometimes referred to as the
      "Premises".  Tenant shall have access to the Premises twenty four
      hours a day, seven days a week.

    

    2.2           Common
      Facilities

    

    Tenant
      shall have, as appurtenant to
      the Premises, rights to use in common with others now or hereafter entitled
      thereto, subject to reasonable rules of general applicability to Tenants of
      the
      Building from time to time made by Landlord of which Tenant is given notice:
      (1)
      the common facilities of the Building and Lot including common walkways,
      driveways, lobbies, hallways, ramps, stairways, elevators, loading platform
      and
      the parking area; (2) the common pipes, ducts, conduits, wires and appurtenant
      equipment serving the Premises; and (3) if the Premises include less than the
      entire rentable area of any floor, the common toilets and other common
      facilities in the central core area of such floor

    

    2.3           Landlord's
      Reservations

    

    Landlord
      reserves the right, from time
      to time, without unreasonable interference with Tenant's use: (1) to install,
      repair, replace, use, maintain and relocate for service to the Premises and
      to
      other parts of the Building, pipes, ducts, conduits, wires and appurtenant
      fixtures wherever located in the Building, and (2) to alter or relocate any
      other common facility, provided that the substitution are substantially
      equivalent or better. Installations, replacements and relocations referred
      to in
      this Section 2.3 shall be located as far as practicable in the central core
      area, above ceiling surfaces, below floor surfaces or within the perimeter
      walls
      of the Premises.

    

    2.4           Term

    

    To
      have and to hold for a period
      commencing on with the scheduled Term Commencement Date and continuing for
      the
      Term unless sooner terminated as provided in Section 7.1 or in Article 9
      below.

    

    2.5Option
      to Extend

    

    (a)           Subject
      to the conditions set forth below, Tenant is granted an Option to Renew this
      Lease for one (1) consecutive (additional) term of three (3) years (the
“Extension Term”), such Extension Term commencing on the day following the
      expiration of this Lease.  Said Option to Extend this Lease shall be
      on the same terms and conditions and provisions and covenants as set forth
      herein (except as specifically set forth hereunder).  The Extension
      Term shall be subject to and provided that Tenant (a) is not in default beyond
      the expiration of any applicable cure period or the monetary covenant, or a
      material non-monetary covenant under this Lease; (b) this Lease is still in
      full
      force and effect; (c) Tenant shall not have sublet, assigned, or otherwise
      transferred all or any portion of its interest under this Lease in violation
      of
      the terms of this Lease; and (d) Tenant shall have exercised this Option at
      least nine (9) months prior to the expiration of the Lease Term, then the Tenant
      may renew this Lease as set forth below.

    

    (b)           The
      Base Rent during the Extension Term shall be equal to the greater of the
      Tenant’s then current rental rate, or the fair market value rent, as determined
      by the Landlord in its sole judgment as of the date of notice from the Tenant
      exercising this Extension Term.  Landlord agrees to provide Tenant
      with written notification of such fair market rental value within twenty (20)
      days of receiving a request from Tenant for such notification, provided such
      request is received by Landlord no earlier than nine (9) months and no later
      than three (3) months and three (3) weeks prior to the expiration of the
      original Term.

    

    (c)           Except
      as provided above, all of the terms, covenants and agreements contained in
      this
      Lease shall continue during the Extension Term.

    

    2.6           Hold-Over
      Penalty.

    

    Tenant
      shall be liable to pay two and
      one-half times (2.50 times) the Base Rental Amount for any hold-over period
      in
      the event Tenant fails to vacate on or before the applicable Expiration
      Date.

    

    

    ARTICLE
      3 - ALTERATIONS

    

    3.1           Preparation
      of Premises for Occupancy

    

    Tenant
      shall accept the Premises in
      their "as is" and present condition, except that prior to the Term Commencement
      date, Landlord, at its expenses, shall perform the work described on Exhibit
      F.

    

    3.2           Tenant
      Changes and Additions

    

    Tenant
      may, from time to time, after
      commencement of the Term, make changes and additions to the Premises in
      accordance with plans and specifications therefore first being approved by
      Landlord, which Landlord will not approve if they will require unusual expense
      to readapt the Premises to normal office use on lease termination or will
      increase the cost of insurance or taxes on the Building or of Landlord's
      services called for by Section 5.1, unless Tenant first provides assurances
      acceptable to Landlord for payment of such increased cost and that such
      readaptation will be made prior to such termination without expense to Landlord.
      All such changes and additions shall be part of the Building except Tenant's
      business equipment, business furnishings and other special items relating to
      Tenant's business. Such other special items shall include only those items
      which
      the parties agree in writing at the time of approval shall be removed by Tenant
      on termination of the Lease, or which Landlord agrees in writing that Tenant
      may
      elect to remove or leave, provided that the Building is not damaged by removal
      nor reduced below the then building standard. All of Tenant's changes and
      additions and installations of furnishings shall be coordinated with any work
      being performed by Landlord and in such manner as to maintain harmonious labor
      relations and not to damage the Building or Lot or interfere with Building
      operation and, except for installation of furnishings, shall be performed by
      Landlord's general contractor or by contractors or workmen first approved by
      Landlord. Except for work by Landlord's general contractor, Tenant, before
      its
      work is started shall: (a) secure all licenses and permits necessary therefore,
      (b) deliver to Landlord a statement of the names of all its contractors and
      subcontractors and the estimated cost of all labor and material to be furnished
      by them, (c) cause each contractor to carry workmen's compensation insurance
      in
      statutory amounts covering all of the contractor's and subcontractor's
      employees, comprehensive public liability insurance with limits in no event
      less
      than $1,000,000 combined single limited coverage and property damage insurance
      with limits of not less than $1,000,000 (all such insurance to be written
      insuring Landlord and Tenant as well as the contractor, and (d) deliver to
      Landlord certificates of all such insurance. Tenant agrees to pay promptly,
      when
      due, the entire cost of any work done on the Premises by Tenant, its agent,
      employees or independent contractors, and not to cause or permit any liens
      for
      labor or materials performed or furnished in connection therewith to attach
      to
      the Premises. Tenant agrees to immediately discharge any such liens which may
      be
      so attached.

    

    3.3           General
      Provisions Applicable to Construction

    

    All
      construction work required or
      permitted by this Lease, whether by Landlord or Tenant, shall be done in a
      good
      and workmanlike manner and in compliance with all applicable laws and all lawful
      ordinances, regulations and orders of governmental authority and insurers of
      the
      Building. Either party may inspect the work of the other at reasonable times,
      and shall promptly give notice of observed defects.

    

    

    ARTICLE
      4 - RENT

    

    4.1           Fixed
      Rent

    

    Tenant
      agrees to pay, without any
      offset or deduction whatever except as made in accordance with the provisions
      of
      this Leased, Annual Fixed Rent at the rate set forth in Section 1.1 above in
      equal monthly installments ("Monthly Fixed Rent") at the rate set forth in
      Section 1.1 above, on the first day of each calendar month including in the
      Term
      hereof and for any portion of a calendar month at the beginning or the end
      of
      the Term, unless otherwise excluded hereunder, at the rate payable in advance
      for such portion.  Provided, however, that Tenant shall make an
      additional payment of $4,250.00 upon the execution of this Lease, which
      represents one half the cost of the installation of the kitchen sink and counter
      requested by Tenant. The remaining cost $4,250.00, is amortized into the base
      rent at the rate of $118.06 per month, or $1,416.67 per year.

    

    4.2           Operating
      Expenses - Including Real Estate Taxes

    

    
      	
              (a)  

            	
              If,
                with respect to any calendar year of the Term after the Base Year
                for
                calculating Landlord's Operating Expenses set forth in Section 1.1,
                or
                fraction thereof, Landlord's Operating Expenses for the Building
                and Lot
                either:

            

    

    

    
      	
               

            	
              (i)

            	
              for
                a full calendar year exceed Landlord's Initial Operating Expenses,
                as
                defined below (as the same may be reduced from time to time pursuant
                to
                the following sentence), or for any fraction of a calendar year exceed
                the
                corresponding fraction of such Landlord's Initial Operating Expenses;
                or

            

    

    

    
      	
               

            	
              (ii)

            	
              for
                a full calendar year are less than Landlord's Initial Operating Expenses
                (as the same may be reduced from time to time pursuant to the following
                sentence), or for any fraction of a calendar year are less than the
                corresponding fraction of such Landlord's Initial Operating
                Expenses;

            

    

    

    then,
      on
      or before the thirtieth (30th) day following receipt by Tenant of the statement
      referred to below in this Section 4.2, Tenant shall, in the case of (i) pay
      to
      Landlord, as additional rent, Landlord's Operating Expenses allocable to the
      Premises, as defined below in this Section 4.2, or in the case of (ii) Landlord
      shall, if the Tenant is paying previously a monthly estimated operating expense
      charge, credit over the next year such amount against monthly installments
      of
      operating expense next coming due.

    

    

    
      	
              (b)

            	
              Landlord
                shall render Tenant an unaudited statement in reasonable detail and
                according to usual accounting practices showing for the preceding
                calendar
                year or fraction thereof, as the case may be, Landlord's Operating
                Expenses for the Building and Lot, excluding costs of special services
                rendered to tenants (including Tenant) for which a special charge
                is made,
                but including without limitation: real estate taxes on the Building
                and
                Lot; installments and interest on assessments for public betterments
                or
                public improvements, offset by any condemnation award, such assessments
                to
                be paid over the longest period permitted by law; expenses of any
                proceedings for abatement of taxes and assessments with respect to
                any
                calendar year or fraction of a calendar year; premiums for insurance
                of
                any kind normally carried by owners of similar properties (including
                insurance in case of fire or casualty) or, if there be any mortgage
                of the
                Lot or Building, or both, as may be required by the holder of the
                mortgage; compensation and all fringe benefits, workmen's compensation
                insurance premiums and payroll taxes paid by Landlord to, for or
                with
                respect to all persons engaged in the operating, maintaining or cleaning
                of the Building or Lot; steam, water, sewer, electric, gas and telephone
                charges not chargeable to tenants; cost of building and cleaning
                supplies
                and equipment; and cost of maintenance, cleaning and repairs (other
                than
                repairs not properly chargeable against income or for which Landlord
                has
                received reimbursement from contractors under guaranties); cost of
                snow
                removal and care of landscaping; payments under service contracts
                with
                independent contractors; management fees at a rate of six percent
                (6%) of
                total rent from all tenants; and all other reasonable and necessary
                expenses paid in connection with the operation, cleaning and maintenance
                of the Building and Lot and properly chargeable against
                income.

            

    

    

    
      	
              (c)

            	
              If
                some other method or type of assessment or taxation shall replace
                the
                current method of assessment or the type of real estate taxes, Tenant
                agrees to pay an equitable share of the same computed in a fashion
                consistent with the method of computation herein provided, to the
                end that
                Tenant's share thereof shall be, to the maximum extent practicable,
                comparable to that which Tenant would bear under the foregoing provisions.
                If a tax (other than a Federal or State net income tax) is assessed
                on
                account of the rents or other charges payable by Tenant to Landlord
                under
                this Lease, the Tenant agrees to pay the same within ten (10) days
                after
                billing therefore, unless applicable law prohibits the payment of
                such tax
                by Tenant.

            

    

    

    
      	
              (d)  

            	
              Landlord's
                Initial Operating Expenses shall be Landlord's expenses for the Base
                Year
                for Calculating Landlord's Base Operating Expenses set forth in Section
                1.1. Landlord's Operating Expenses Allocable to the Premises for
                any
                particular year shall be determined by multiplying the difference
                between
                Landlord's Operating Expenses for the Building and Lot for the items
                covered by the foregoing statement for such year and Landlord's Initial
                Operating Expenses times a fraction, the numerator of which is the
                Rentable Floor Area of Tenant's Space and the denominator of which
                is the
                Total Rentable Floor Area of the Building ("Tenant's Proportionate
                Share"). In case of special services which are not rendered to all
                areas
                on a comparable basis, the proportion allocable to the Premises shall
                be
                the same proportion which Rentable Floor Area of Tenant's Space bears
                to
                the total rentable floor area of the Building to which such service
                is so
                rendered (such latter area to be determined in the same manner as
                the
                Total Rentable Floor Area of the
                Building).

            

    

    
      	
              (e)  

            	
              Landlord
                shall maintain accurate, detailed records of Landlord’s Operating Expenses
                at Landlord’s office identified on page 1 of this Lease for at least two
                (2) years after delivery of the Statement to Tenant.  During the
                six (6) months after a Statement is submitted to Tenant, Tenant may,
                upon
                ten (10) days’ prior written notice to Landlord, inspect and/or audit
                Landlord’s records of Landlord’s Operating Expenses for the period covered
                by such Statement.  If the audit shows that Tenant paid less of
                Tenant’s pro rata share of Landlord’s Operating Expenses than was actually
                due, Tenant shall pay the amount of the deficiency to Landlord within
                one
                (1) month after Tenant’s receipt of such audit.  If the audit
                shows that Tenant paid more of Tenant’s pro rata share of Landlord’s
                Operating Expenses than was actually due, Landlord shall, at Tenant’s
                election, pay said excess to Tenant within one (1) month after completion
                of such audit or credit such excess to Tenant’s next installment of Base
                Rent due.  If such audit shows that such Statement contains an
                overstatement of Landlord’s Operating Expenses exceeding five percent (5%)
                of the actual Landlord’s Operating expenses for the period covered by such
                Statement, then the reasonable third party fees and expenses actually
                incurred by Tenant in conducting such audit shall be paid by Landlord;
                otherwise, such fees and expenses shall be paid by Tenant.  If
                Landlord protests the conclusions of such audit, Landlord may contest
                Tenant’s determination by giving Tenant written notice within one (1)
                month following Landlord’s receipt of the audit report.  If
                Landlord and Tenant cannot mutually agree as to Tenant’s pro rata share of
                Landlord’s Operating Expenses due within one (1) month after Tenant’s
                receipt of Landlord’s notice of protest, Landlord and Tenant shall jointly
                choose an independent Certified Public Accountant, whose determination
                shall be binding upon the parties hereto.  If Landlord and
                Tenant fail to agree upon an independent Certified Public Accountant,
                the
                parties agree to proceed forthwith to arbitrate the issue in accordance
                with the Commercial Arbitration Rules of the American Arbitration
                Association.  The cost of the independent Certified Public
                Accountant or the cost of arbitration shall be borne equally by the
                parties, but the cost of the audit shall be borne by either Landlord
                or
                Tenant as aforesaid.

            

    

    

    

    

    

    

    4.3           Lot

    

          "Lot"
      means all the land described in Exhibit A, or any part(s) thereof, plus any
      addition(s) thereto resulting from the change of any abutting street
      line.

    

    4.4           Accounting

    

          Landlord
      shall have the right, from time to time, to change the periods of accounting
      under Section 4.2 to any annual period other than a calendar year, and upon
      any
      such change, all items referred to in said Section 4.2 shall be appropriately
      apportioned. In all statements rendered under Section 4.2 amounts for periods
      partially within and partially without the accounting periods shall be
      appropriately apportioned. Any costs which are not determinable at the time
      of a
      statement shall be included therein on the basis of Landlord's estimate, and
      Landlord shall render promptly after determination of such costs a supplemental
      statement and appropriate adjustment shall be according thereto, provided,
      however, that under no circumstances shall a change in the periods of accounting
      result in Tenant paying more amounts than provided under Section 4.2, merely
      because of such change in periods of accounting.

    

    4.5           Payment
      of Additional Rent

    

          Except
      as otherwise specifically provided in this Lease, any sum, amount, item or
      charge designated or considered as additional rent in this Lease shall be paid
      by Tenant to Landlord on the first day of the month following the date on which
      Landlord notifies Tenant of the amount payable, or on the fifteenth day after
      the giving of such notice, whichever shall be later. Any such notice shall
      specify, in reasonable detail, the basis of such additional rent. On the first
      day of each month following that month in which notice of additional rent is
      given, Tenant shall pay to Landlord one-twelfth (1/12) of the amount reasonably
      estimated by Landlord to be the amount of additional rent which shall be payable
      by the Lessee for the then current year. Reasonably estimated amounts shall,
      where possible, be based on actual cost experience. When the actual, rather
      than
      reasonably estimated, amount(s) of such additional rent has been ascertained,
      Landlord shall notify Tenant of the amount due, if any, giving credit for the
      monthly payments theretofore made by Tenant and crediting the overage, if any,
      against additional rent to become due. Tenant shall pay any balance due within
      ten (10) days after Landlord's notice.

    

    

    ARTICLE
      5 - LANDLORD'S COVENANTS

    

    5.1           Landlord's
      Covenants

    

    
      	
              (a)  

            	
              to
                furnish, through Landlord's employees or independent contractors,
                the
                services listed in Exhibit C attached hereto and made a part hereof;
                and

            

    

    

    
      	
              (b)  

            	
              to
                furnish, through Landlord's employees or independent contractors,
                reasonable additional building operation services upon reasonable
                advance
                request of Tenant at equitable rates from time to time established
                by
                Landlord to be paid for by Tenant;
                and

            

    

    

    
      	
              (c)  

            	
              except
                as otherwise provided in Article 7, to make such repairs to the roof,
                exterior walls and glass, floor slabs and common areas and facilities
                of
                the Building as may be necessary to keep them in serviceable condition;
                and

            

    

    

    
      	
              (d)  

            	
              that
                Landlord has the right to make this Lease and that Tenant, on paying
                the
                rent and

            

    

    performing
      its obligations in this Lease, shall peacefully and quietly have, hold and
      enjoy
      the Premises throughout the Term, subject to all the terms and provisions
      hereof; and

    

    
      	
              (e)

            	
              to
                defend, save harmless and indemnify Tenant from any liability or
                injury,
                loss, accident or damage to any person or property and from any claims,
                actions, proceedings and expenses and costs in connection therewith
                (including, without limitation, reasonable counsel fees), (i) arising
                from
                the omission, fault, wilful act, negligence or other misconduct of
                Landlord or from any use made or thing done or occurring on the Premises
                not due to the omission, fault, wilful act, negligence or other misconduct
                of Tenant, or (ii) resulting from the failure of Landlord to perform
                and
                discharge its covenants and obligations under this
                Lease.

            

    

    

    
      	
              5.2  

            	
              Interruptions

            

    

    

    
      	
              (a)

            	
              Landlord
                shall not be liable to Tenant for any compensation or reduction of
                rent by
                reason of inconvenience or annoyance or for loss of business arising
                from
                power losses and shortages, the necessity of Landlord's entering
                the
                Premises for any of the purposes in this Lease authorized, or for
                repairing the Premises or any portion of the Building or Lot however
                the
                necessity may occur. In case Landlord is prevented or delayed from
                making
                any repairs, alterations or improvements, or furnishing any services
                or
                performing any other covenant or duty to be performed on Landlord's
                part,
                by reason of any cause reasonably beyond Landlord's control. Landlord
                shall not be liable to Tenant therefore, nor, except as expressly
                provided
                in Section 7.1, shall Tenant be entitled to any abatement or reduction
                of
                rent by reason thereof, nor shall the same give rise to a claim in
                Tenant's favor that such failure constitutes actual or constructive,
                total
                or partial, eviction from the
                Premises.

            

    

    

    
      	
              (b)

            	
              Landlord
                reserves the right to stop any service or utility system, when necessary,
                by reason of accident or emergency, or until necessary repairs have
                been
                completed; provided, however, that in each instance of stoppage,
                Landlord
                shall exercise reasonable diligence to eliminate the cause(s) thereof.
                Except in case of emergency repairs, Landlord will give Tenant reasonable
                advance efforts to avoid unnecessary inconvenience to Tenant by reason
                thereof.

            

    

    

    

    

    ARTICLE
      6 - TENANT'S COVENANTS

    

    6.1           Tenant's
      Covenants

    

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

    

    
      	
              (a)

            	
              to
                pay when due all fixed rent and additional rent, all taxes which
                may be
                imposed on Tenant's personal property on the Premises (including,
                without
                limitation, Tenant's fixtures and equipment) regardless to whomever
                assessed, and all charges by Landlord or by public utility companies
                for
                telephone, electricity, gas and any other utility services and service
                inspections therefor, and all charges by public utility companies
                for
                installation of metering devices (which charges, if not separately
                metered
                or otherwise apportionable, shall be apportioned on a floor area
                basis for
                multi-tenanted floors)(electricity charges for the Premises, however,
                are
                separately metered and Tenant shall be responsible for paying such
                charges
                directly to the supplier thereof), and all charges of Landlord for
                services rendered pursuant to Section 5.1;
                and

            

    

    

    
      	
              (b)

            	
              except
                as otherwise provided in Article 7 and Section 5.1 (c), to keep the
                Premises in good order, repair and condition, reasonable wear and
                damage
                by fire and casualty only excepted, and at the expiration or termination
                of this Lease peaceable to yield up the Premises and all changes
                and
                additions therein in such order, repair and condition, first removing
                all
                goods, effects and fixtures of Tenant and any items the removal of
                which
                is required by any agreement made pursuant to Section 3.2 hereof,
                or
                specified therein to be removed at Tenant's election and which Tenant
                elects to remove, and repairing all damage caused by such removal
                and
                restoring the Premises and leaving them clean and neat;
                and

            

    

    

    
      	
              (c)

            	
              not
                inure or deface the Premises, Building or Lot, nor to permit in the
                Premises any auction sale, or nuisance, or the emission from the
                Premises
                of any objectionable noise or odor, nor to use or devote the Premises
                or
                any part thereof for any purpose other than the Permitted Uses, nor
                any
                use thereof which is improper, offensive, contrary to law or ordinance,
                or
                liable to invalidate or increase the premiums for any insurance on
                the
                Building or its contents or liable to render necessary any alteration
                or
                addition to the Building; and

            

    

    

    
      	
              (d)

            	
              not
                to obstruct in any manner any portion of the Building not hereby
                leased or
                any portion thereof or of the Lot used by Tenant in common with others;
                not without prior consent of Landlord to permit the painting or placing
                of
                any signs or the placing of any curtains, blinds, shades, awnings,
                aerials
                or flagpoles, or the like, visible from outside the Premises; and
                to
                comply with the Rules and Regulations set forth in Exhibit D attached
                hereto, and all other reasonable rules and/or regulations hereafter
                made
                by Landlord, of which Tenant has been given notice, for the case
                and use
                of the Building and Lot and their facilities and approaches; Landlord
                shall not be liable to Tenant for the failure of other tenants of
                the
                Building to conform to such Rules and Regulations;
                and

            

    

    

    
      	
              (e)

            	
              to
                keep the Premises equipped with all safety appliances required by
                law or
                ordinance or any other regulation of any public authority because
                of any
                use made by Tenant other than normal office use, and to procure all
                licenses and permits so required because of such use and, if requested
                by
                Landlord, to do any work so required because of such use, it being
                understood that the foregoing provisions shall not be construed to
                broaden
                in any wan Tenant's Permitted Uses;
                and

            

    

    

    
      	
              (f)  

            	
              not
                without prior consent of Landlord to assign this Lease or sublet
                the
                Premises (which consent Landlord shall not unreasonably withhold);
                as
                additional rent, to reimburse Landlord promptly for reasonable legal
                and
                other expenses incurred by Landlord in connection with any request
                by
                Tenant for consent to a assignment or subletting; no assignment or
                subletting and no consent of Landlord thereto shall affect the continuing
                primary liability of Tenant (which, following assignment, shall be
                joint
                and several with the assignee); no consent to any of the foregoing
                in a
                specific instance shall operate as a waiver in any subsequent instance;
                and not withstanding Landlord's consent, no assignment shall be binding
                upon Landlord or any of Landlord's mortgagees, unless Tenant shall
                deliver
                to Landlord an instrument in recordable form which contains a covenant
                of
                assumption by the assignee running to Landlord and all persons claiming
                by, through or under Landlord, but the failure or refusal of the
                assignee
                to execute such instrument of assumption shall not release or discharge
                assignee from its liability as Tenant hereunder nor shall execution
                of
                such instrument of assumption affect the continuing primary liability
                of
                Tenant; Landlord agrees not to unreasonably withhold or delay its
                consent
                to an assignment or subletting, provided, however, that with respect
                to
                any assignment or subletting, the following provisions shall
                apply:

            

    

    (1)           Tenant
      shall give Landlord written notice of the assignment or subletting no less
      than
      45 days prior to the effective date thereof, which notice shall set forth the
      identity of the proposed transferee, and the nature of the proposed transferee’s
      business to be carried on in the Premises.

     

    (2)           Tenant
      shall furnish Landlord (a) no less than 30 days prior to the effective date
      of the assignment or subletting, with a current financial statement of the
      proposed transferee reasonably acceptable to Landlord, and (b) within three
      (3) days following Landlord’s demand, with all other information reasonably
      requested by Landlord with respect to such transferee.

     

    In
      any case, where the Landlord shall
      consent to such assignment, other transfer or subletting, the Tenant originally
      named herein shall remain fully liable for Tenant obligations hereunder,
      including, without limitation, the obligation to pay the rent and other amounts
      provided under this Lease, and the Tenant also hereby agrees to pay to the
      Landlord, within fifteen (15) days of billing therefor, all legal and other
      fees
      incurred by the Landlord in connection with reviewing and approving any such
      assignment, other transfer or subletting. Any Assignment or subletting, whether
      or not Landlord's prior consent is required, shall be subject to any successor
      using the Premises for the same use as Tenant's use, or for a modified use
      only
      if acceptable to Landlord.  The Tenant shall give written notice to
      the Landlord of the terms of any such proposed assignment or sublease and the
      Landlord shall be entitled to 50% of all net profits from any such sublease
      or
      assignment.  Net profit shall be calculated by first allowing Tenant
      to recover any reasonable construction and commission inducement(s) given to
      the
      subtenant or assignee.  It shall be a condition of the validity of any
      permitted assignment or other transfer or subletting that the assignee or
      transferee or subtenant agree directly with the Landlord, in form satisfactory
      to the Landlord, to be bound by all Tenant obligations hereunder, including,
      without limitation, the obligation to pay rent and other amounts provided for
      under this Lease and the covenant against further assignment or other transfer
      or subletting.

    

    

    

    
      	
              (g)

            	
              to
                defend, with counsel approved by Landlord, save harmless and indemnify
                Landlord from any liability or injury, loss, accident or damage to
                any
                person or property and from any claims, actions, proceedings and
                expenses
                and costs in connection therewith (including without limitation reasonable
                counsel fees), (i) arising from the omission, fault, willful act,
                negligence or other misconduct of Tenant or from any use made or
                thing
                done or occurring on the Premises not due to the omission, fault,
                willful
                act, negligence or other misconduct of Landlord, or (ii) resulting
                from
                the failure of Tenant to perform and discharge its covenants and
                obligations under this Lease; and

            

    

    

    
      	
              (h)  

            	
              to
                maintain public liability insurance on the Premises in the amounts
                which
                shall, at the beginning of the Term, be at least equal to the limits
                set
                forth in Section 1.1, and, from time to time during the Term, shall
                be for
                such higher amounts, if any, as are customarily carried in the area
                in
                which the Premises are located on property similar to the Premises
                and
                used for similar purposes, and to furnish Landlord with certificates
                thereof: and

            

    

    

    
      	
              (i)  

            	
              to
                keep all Tenant's employees working in the Premises covered by workmen's
                compensation insurance in statutory amounts and to furnish Landlord
                with
                certificates thereof; and

            

    

    

    

    
      	
              (j)

            	
              to
                permit Landlord and Landlord's agents to examine the Premises at
                reasonable times and, if Landlord shall so elect, to make any repairs
                or
                replacements Landlord may deem necessary to avert an emergency, to
                remove,
                at Tenant's expense, any changes, additions, signs, curtains, blinds,
                shades, awning(s), aerials, flagpoles, or the like, not consented
                to in
                writing, and to show the Premises to prospective tenants during twelve
                (12) months preceding the expiration of the Term hereof and to prospective
                purchasers and mortgagees at all reasonable times upon reasonable
                appointment with Tenant; and

            

    

    

    
      	
              (k)  

            	
              not
                to place a load upon the Premises exceeding an average rate of 80
                pounds
                of live load per square foot of floor area; and not to move any safe,
                vault or other heavy equipment in, about or out of the Premises except
                in
                such manner and at such times as Landlord shall in each instance
                authorize; Tenant's business machines and mechanical equipment which
                cause
                vibration or noise that may be transmitted to the Building structure
                or to
                any other leased space in the Building shall be placed and maintained
                by
                Tenant in settings of cork, rubber, spring or other type of vibration
                eliminators sufficient to eliminate all such vibrations or noise;
                and

            

    

    

    
      	
              (l)  

            	
              all
                the furnishings, fixtures, equipment, effects and property of every
                kind,
                nature and description of Tenant and of all persons claiming by,
                through
                or under Tenant which, during the continuance of this Lease or any
                occupancy of the Premises by Tenant or anyone claiming under Tenant,
                may
                be on the Premises or elsewhere in the Building, shall be at the
                sole risk
                and hazard of Tenant, and if the whole or any part thereof shall
                be
                destroyed or damaged by fire, water or otherwise, or by the leakage
                or
                bursting of pipes, steam pipes or other pipes, by theft or from any
                other
                cause, no part of said loss or damage is to be charged to or borne
                by
                Landlord; and

            

    

    

    

    
      	
              (m)

            	
              not
                to suffer or permit any liens to stand against the Premises by reason
                of
                work, labor services or materials done for or at the request of Tenant;
                Tenant shall cause any such liens to be immediately discharged within
                thirty (30) days after the date of any such lien(s) being filed thereof;
                and

            

    

    

    
      	
              (n)

            	
              in
                case Landlord shall, without any fault on its part, be made party
                to any
                litigation commenced by or against Tenant or by or against any parties
                in
                possession of the Premises or any party thereof claiming under Tenant,
                to
                pay, as additional rent, all costs including, without limitation,
                reasonable attorney fees, incurred by or imposed upon Landlord in
                connection with such litigation, and also to pay, as additional rent,
                all
                such costs and fees incurred by Landlord in connection with the successful
                enforcement by Landlord of any obligations of Tenant under this Lease;
                and

            

    

    

    
      	
              (o)  

            	
              not
                to allow any of the Tenant's employees, agents, etc., to park illegally,
                i.e. in fire lanes, traffic lanes, spaces marked for visitors, handicapped
                or reserved parking, etc.; and

            

    

    

    
      	
              (p)

            	
              not
                to allow any of Tenant's employees, agents, etc. to smoke anywhere
                in the
                building, including the Leased Premises, hallways, corridors, bathrooms,
                etc., as the Building is a "Smoke Free"
                building.

            

    

    

    

    ARTICLE
      7 - CASUALTY AND TAKING

    

    7.1           Casualty
      and Taking

    
      	
              (a)

            	
              In
                case during the Term all or any substantial part of the Premises
                are
                damaged materially by fire or other casualty or by action of public
                or
                other authority in consequence thereof, or are taken by eminent domain
                or
                Landlord receives compensable damage by reason of anything lawfully
                done
                in pursuance of public or other authority (a "Material Event" subject
                to
                Section 7.1 (c) below), this Lease shall terminate at Landlord's
                or
                Tenant's election, which may be made notwithstanding that Landlord's
                entire interest may have been divested, by notice given to the other
                within sixty (60) days after the notice given by Landlord pursuant
                to
                Section 7.1(c) hereof, which notice shall specify the effective date
                of
                termination. Tenant shall also have the right to terminate (i) in
                the
                event of substantial damage to or taking of the Building or Lot that
                renders Tenant unable to conduct its business in the Premises, or
                (ii) in
                the event of damage to the Premises in the last ninety (90) days
                of the
                Term, which damage renders the Premises untenantable for more than
                fifteen
                (15) days.

            

    

    

    
      	
              (b)

            	
              In
                case, during the Term, all or any substantial part of the Building
                or the
                Lot are damaged materially by fire or other casualty or by action
                of
                public or other authority in consequence thereof, or are taken by
                eminent
                domain or Landlord receives compensable damage by reason of anything
                lawfully done in pursuance of public or other authority (a "Material
                Event" subjection to Section 7.1 (c) below), this Lease shall terminate
                at
                Landlord's election, which may be made notwithstanding that Landlord's
                entire interest may have been divested, by notice given to Tenant
                within
                sixty (60) days after the occurrence of the notice given by Landlord
                pursuant to Section 7.1 (c) hereof, which notice shall specify the
                effective date of termination.

            

    

    

    
      	
              (c)

            	
              The
                effective date of any termination by Landlord or Tenant under this
                Section
                7.1 shall not be less than fifteen (15) days nor more than thirty
                (30)
                days after the date of such notice of termination. For all purposes
                of
                this Section 7.1., no damage or taking shall be considered a "Material
                Event" unless the time needed for Landlord to do the construction
                work
                necessary to put the Premises, Building or Lot or the remainder in
                proper
                condition for use and occupancy is reasonably estimated by Landlord
                to
                exceed six (6) months, or if more than thirty percent (30%) of the
                Lot,
                the Building or the Premises are so taken. In case of any such damage
                or
                taking, Landlord shall notify Tenant within thirty (30) days after
                the
                occurrence thereof of Landlord's estimate of the time needed to do
                the
                construction work necessary to put the Premises, Building or Lot
                or the
                remainder in proper condition for use and occupancy, or of the percentage
                of the Building, Lot or Premises
                taken.

            

    

    

    
      	
              (d)

            	
              If
                in any such case, the Premises are rendered unfit for use and occupancy
                and the Lease is not so terminated, Landlord shall use due diligence
                (following the expiration of all periods in which either party may
                terminate this Lease pursuant to the foregoing provisions of this
                Section
                7.1 ) to put the Premises, or in case of taking what may remain thereof
                (excluding any times installed or paid for by Tenant that Tenant
                may be
                required to remove pursuant to Section 3.2), into proper condition
                for use
                and occupancy and a just proportion of the fixed rent and additional
                rent
                according to the nature and extent of the injury shall be abated
                until the
                Premises or such remainder shall have been put by Landlord in such
                condition, and in case of a taking that permanently reduces the area
                of
                the Premises, a just proportion of the fixed rent and additional
                rent
                shall be abated for the remainder of the
                Term.

            

    

    

    

    
      	
              7.2

            	
              Reservation
                of Award

            

    

    

    Landlord
      reserves to itself all rights
      to receive awards made for damages to the Premises and Building and Lot and
      the
      leasehold hereby created, or any one or more of them accruing by reason of
      exercise of eminent domain or by reason of anything lawfully done in pursuance
      of public or other authority.

    

    Tenant
      hereby releases and assigns to
      Landlord all Tenant's rights to such awards, and covenants to deliver such
      further assignments and assurances thereof as Landlord may from time to time
      request, hereby irrevocably designating and appointing Landlord as its
      attorney-in-fact to execute and deliver in Tenant's name and behalf all such
      further assignment thereof. It is agreed and understood, however, that Landlord
      does not reserve to itself, and Tenant does not assign to Landlord, any damages
      payable for (i) movable trade fixtures installed by Tenant or anyone claiming
      under Tenant at its own expense or fixtures or items the removal of which is
      required or permitted by any agreement made pursuant to Section 3.2, or (ii)
      relocation expenses recoverable by Tenant from such authority in a separate
      action.

    

    

    ARTICLE
      8 - RIGHTS OF MORTGAGEE

    

    8.1           Subordination

    

    The
      Lease shall be subject and
      subordinate to any first mortgage on the Building, now or at any time hereafter
      in effect, unless the holder of such mortgage elects by notice to Tenant to
      have
      this Lease superior to its mortgage. In addition, Landlord shall have the option
      to subordinate this Lease to any other mortgage or deed of trust that includes
      the Premises as part of the mortgaged premises, provided that the holder thereof
      enters into an agreement with Tenant by the terms of which (i) in the event
      of
      acquisition of title by such holder through foreclosure proceedings or
      otherwise, and provided Tenant is not in default hereunder, the holder will
      agree to recognize the rights of Tenant under this Lease and to accept Tenant
      as
      tenant of the Premises under the terms and conditions of this Lease, and (ii)
      Tenant will agree to recognize the holder of such mortgage as Landlord in such
      event. This agreement shall be made to expressly bind and insure to the benefit
      of the successors and assigns of Tenant and of the holder and of anyone
      purchasing said Premises at any foreclosure sale. Any such mortgage to which
      this Lease shall be subordinated may contain such terms, provisions and
      conditions as the holder deems usual or customary. The Lot or Building, or
      both,
      are separately and together hereinafter in this Article 8 referred to as "the
      mortgaged premises". The word "mortgagee" as used in this Lease shall include
      the holder for the time being whenever the context permits.

    

    8.2           Entry
      Other Than For Foreclosure

    

    Upon
      entry and taking possession of the
      mortgaged premises for any purpose other than foreclosure, the holder of a
      mortgage shall have all right of Landlord, and, during the period of such
      possession, the duty to perform all of Landlord's obligations under this Lease.
      No such holder shall otherwise be liable to perform any other of Landlord's
      covenants and obligations under this Lease.

    

    8.3           Entry
      For Foreclosure

    

    Except
      as otherwise provided in Section
      8.2 hereof, no such holder of a mortgage shall be liable, either as mortgagee
      or
      as holder of a collateral assignment of this Lease, to perform, or be liable
      in
      damages for failure to perform, any of the obligations of Landlord unless and
      until such holder shall enter and take possession of the mortgaged premises
      for
      the purpose of foreclosing a mortgage. Upon entry for the purpose of foreclosing
      a mortgage, such holder shall be liable to perform all of the subsequent
      obligations of Landlord, subject to the provisions of Section 8.6 and subject
      to
      and with the benefit of the provisions of Section 10.6, provided that a
      discontinuance of any foreclosure proceeding shall be deemed a conveyance under
      said provisions to the owner of the equity of the mortgaged
      premises.

    

    8.4           No
      Prepayment

    

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

    

    8.5           No
      Release or Termination

    

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

    

    8.6           No
      Modification Etc.

    

    No
      assignment of this Lease, no
      agreement to make or accept any surrender, termination or cancellation of this
      Lease and no agreement to modify this Lease so as to reduce the rent, change
      the
      Term, or otherwise materially change the rights of Landlord under this Lease
      or
      to relieve Tenant of any obligations or liability under this Lease, shall be
      valid unless consented to in writing by Landlord's mortgagees of record, if
      any.

    

    8.7           Continuing
      Offer

    

    The
      covenants and agreements contained
      in this Lease with respect to the rights, powers and benefits of a mortgagee
      (particularly, without limiting the generality of the foregoing, the covenants
      and agreements contained in this Article 8) constitute a continuing offer to
      any
      person, corporation or other entity that by accepting or requiring an assignment
      of this Lease or by entry or foreclosure assumes the obligations herein set
      forth with respect to such mortgagee; such mortgagee is hereby constituted
      a
      part to this Lease as an obligee hereunder to the same extent as though its
      name
      were written hereon as such, and such mortgagee shall be entitled to enforce
      such provisions in its own name.

    

    8.8           Implementation

    

    Tenant
      agrees, on request of Landlord,
      to execute and deliver from time to time any agreement which may reasonably
      be
      deemed necessary to implement the provisions of this Article 8.

    

    8.9           Financing

    

    In
      the event that any actual or
      proposed holder of a first mortgage on the Building or Lot shall demand that
      this Lease be modified or amended in any respect, Tenant agrees to so modify
      or
      amend this Lease within fifteen (15) days after Landlord's request, so long
      as
      such modification or amendment does not materially adversely affect Tenant's
      rights of obligations under this Lease.

    

    ARTICLE
      9 - DEFAULTS

    

    9.1           Events
      of Default

    

    
      	
              (a)  

            	
              If
                Landlord contends that Tenant has neglected or failed to perform
                any of
                Tenant's covenants, agreements or obligations hereunder, Landlord
                shall
                notify Tenant in writing accordingly, specifying the alleged neglect
                or
                failure. Such notice having been given by Landlord, Tenant
                shall:

            

    

    

    
      	
               

            	
              (1)

            	
              in
                the case of alleged failure to pay fixed rent, make payment in FULL
                within
                seven (7) days after notice thereof;
                and

            

    

    

    
      	
              (2)  

            	
              in
                the case of alleged neglect or failure to perform any of Tenant's
                covenants, agreements or obligations hereunder, other than the obligation
                to pay fixed rent:

            

    

    

    
      	
              (i)  

            	
              correct
                the matters complained of in such notice within thirty (30) days
                after
                notice thereof (or, if more than thirty (30) days are reasonably
                required
                to complete such correction, begin such correction within such thirty
                (30)
                days and thereafter prosecute the correction to such default to completion
                with due diligence), or

            

    

    

    
      	
               

            	
              (ii)

            	
              notify
                Landlord within such thirty (30) day period that Tenant disputes
                the
                matters contained in such notice and at the same time serve on Landlord
                a
                copy of a demand for arbitration of the matter disputed and otherwise
                proceed to arbitration under Article 11 hereof. If the decision of
                the
                arbitrator pursuant to Article 11 is adverse to Tenant, in whole
                or in
                part, Tenant shall forthwith begin to correct the matters complained
                of by
                Landlord or that portion thereof as to which the decision shall have
                been
                adverse to Tenant, and Tenant shall complete the same within thirty
                (30)
                days after such decision, or if more than thirty (30) days are reasonably
                required to complete such correction, begin such correction within
                such
                thirty (30) days and thereafter prosecute the correction of such
                default
                to completion with due diligence. If so requested by either party,
                the
                arbitrator shall establish the time in excess of thirty (30) days
                reasonably required for such completion and the same shall be completed
                within such time, subject to unavoidable
                delay.

            

    

    

    (b)
      In
      the event that:

    

    
      	
               

            	
              (1
                )

            	
              Tenant
                fails to comply with subparagraph (1 ) above with respect to fixed
                rent
                defaults or Tenant fails to comply with either subclause (i) or (ii)
                or
                subparagraph (2) above with respect to non-performance of any other
                covenant, agreement or obligation contained herein;
                or

            

    

    

    
      	
               

            	
              (2)

            	
              any
                assignment shall be made by Tenant or any guarantor of Tenant for
                the
                benefit of creditors; or

            

    

    

    
      	
              (3)

            	
              Tenant's
                leasehold interest shall be taken on execution;
                or

            

    

    

    
      	
               

            	
              (4)

            	
              a
                lien or other involuntary encumbrance is filed against Tenant's leasehold
                interest or Tenant's other property, including said leasehold interest,
                and is not discharged within ten (10) days thereafter;
                or

            

    

    

    
      	
               

            	
              (5)

            	
              a
                petition is filed by Tenant or any guarantor of Tenant for adjustment
                as a
                bankrupt, or for reorganization or an arrangement under any provision
                of
                the Bankruptcy Act as then in force and effect;
                or

            

    

    

    
      	
               

            	
              (6)

            	
              an
                involuntary petition under any of the provisions of said Bankruptcy
                Act is
                filed against Tenant or any guarantor of Tenant and such involuntary
                petition is not dismissed within sixty (30) days
                thereafter;

            

    

    

    then,
      and
      in any of such case(s), Landlord and the agent and servants of Landlord may,
      in
      addition to and not in derogation of any remedies for any preceding breach
      of
      covenant, immediately or at any time thereafter and without demand or notice
      and
      with or without process of law (forcibly, if necessary) enter into and upon
      the
      Premises or any part thereof in the name of the whole or mail a notice of
      termination addressed to Tenant at the Premises, and repossess the same as
      of
      Landlord's former estate and expel Tenant and those claiming through or under
      Tenant and remove Tenant and its effect(s) (forcibly, if necessary) without
      being deemed guilty and manner of trespass and without prejudice to any remedies
      which might otherwise be used for arrears of rent or prior breach of covenant,
      and upon such entry or mailing as aforesaid, this Lease shall
      terminate.

    

    9.2           Tenant's
      Obligations After Termination

    

    
      	
              (a)  

            	
              In
                the event that this Lease is terminated under any of the provisions
                of
                Section 9.1 or is otherwise terminated for breach of any obligation
                of
                Tenant, Tenant covenants to pay forthwith to Landlord, as compensation,
                the excess of the total rent reserved for the residue of the Term
                (discounted over the balance of the Term at a rate of four percent
                (4%))
                over the fair market rental value of the Premises for said residue
                of the
                Term. In calculating the rent reserved there shall be included, in
                addition to the fixed rent and all additional rent, the value of
                all other
                considerations agreed to be paid or performed by Tenant for said
                residue.
                Tenant further covenants as an additional and cumulative obligation
                after
                any such termination to pay punctually to Landlord all the sums and
                perform all the obligations which Tenant covenants in this Lease
                to pay
                and to perform in the same manner and to the same extent and at the
                same
                time as if this Lease had not been terminated. In calculating the
                amounts
                to be paid by Tenant under paragraph 9.2(b) below, Tenant shall be
                credited with any amount paid to Landlord as compensation in accordance
                with this Section 9.2 and also with the net proceeds of any rent
                obtained
                by Landlord by reletting the Premises, after deducting all of Landlord's
                expenses in connection with such reletting, including, without limitation,
                all repossession costs, brokerage commissions, fees for legal services
                and
                expense of preparing the Premises for such reletting. Tenant agrees
                that
                Landlord may (i) relet the Premises or any part or parts thereof
                for a
                term or terms which may, at Landlord's option, be equal to, less
                than or
                greater than the period which would otherwise have constituted the
                balance
                of the Term and may grant such concessions and free rent as Landlord,
                in
                its sole judgment, considers advisable or necessary to relet the
                same, and
                (ii) make such alterations, repairs and decorations in or to the
                Premises
                as Landlord, in its sole judgment, considers advisable or necessary
                to
                relet the same. Any action of Landlord in accordance with this Section
                9.2
                or any failure of Landlord to relet or to collect rent after reletting
                shall not operate or be construed to release or reduce Tenant's liability
                as aforesaid.

            

    

    

    
      	
              (b)  

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

            

    

    

    

    
      	
              (c)

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

            

    

    

    9.3           Landlord's
      Default

    

    Landlord
      shall not be deemed to be in
      default hereunder unless its default shall continue for thirty (30) days after
      written notice thereof has been given by Tenant to Landlord specifying the
      nature of the alleged default, or such additional time as is reasonably required
      to correct its default, provided that Landlord shall, subject to its arbitration
      rights set forth below, begin such correction within such thirty (30) days
      period and thereafter prosecute the curing of such default to completion with
      due diligence. Landlord shall have the right to dispute Tenant's allegation
      of
      default using the arbitration procedures set forth in Article 11. In no event
      shall Tenant be entitled to a right of set-off hereunder. In the event of
      Landlord's default, Tenant shall be obligated to continue to pay rent in
      full.

    

    

    

    ARTICLE
      10 - MISCELLANEOUS

    

    10.1           Measurement

    

    For
      all purposes of this Lease, all
      floor areas shall be computed generally in accordance with the current standard
      method of floor measurement of office buildings used in the greater Boston
      area.
      In such computation, common areas shall be included to the extent therein
      provided notwithstanding their exclusion from the Premises.

    

    

    1
      0.2                      Titles

    

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

    

    10.3           Notice
      of Lease

    

    Upon
      request of either party, both
      parties shall execute and deliver after the Lease Term begins, a Notice of
      Lease
      satisfactory in form to Landlord and appropriate for recording at the Registry
      of Deeds, if applicable, and, if this Lease is terminated before the Lease
      Term
      expires, a Termination of Lease or such other form shall be executed by Tenant
      and Landlord acknowledging the date of Termination, in form satisfactory to
      Landlord and appropriate for recording, if applicable.

    

    1
      0.4                      Consent

    

    Except
      where otherwise provided herein,
      whenever any approval, consent, authorization or the like by Landlord or Tenant
      is expressly required by this Lease, the approval, consent, authorization or
      the
      like shall not be unreasonably delayed or withheld.

    

    1
      0.5                      Notices

    

    Whenever
      any notice, approval, consent,
      request or election is given or made pursuant to this Lease, it shall be in
      writing. Communications and payments shall be addressed if to Landlord at the
      Address of Landlord set forth in Section 1.1 hereof or at such other address
      as
      may have been specified by prior notice from Landlord to Tenant. If said
      communication or payment is to Tenant, to the Tenant at the Premises or at
      such
      other address as may have been specified by prior notice to Landlord. Any
      communication or notice so addressed shall be deemed duly served if mailed
      by
      registered or certified mail, return receipt requested.

    

    10.6           Bind
      and Inure

    

    The
      obligations of this Lease shall run
      with the land, and this Lease shall be binding upon and inure to the benefit
      of
      the parties hereto and their respective successors and assigns, except that
      only
      the original Landlord named herein shall be liable for obligations accruing
      before the beginning of the Term, and thereafter the original Landlord named
      herein and each successive owner of the Premises shall be liable only for the
      obligations accruing during this period of its ownership. Whenever the Premises
      are owned by a trustee or trustees, the obligations of Landlord shall be binding
      upon Landlord's trust estate, but not upon any trustee or beneficiary of the
      trust individually.

    

    10.7           No
      Surrender

    

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

    

    10.8           No
      Waiver. etc.

    

    The
      failure of Landlord or of Tenant to
      seek redress for violation of, or to insist upon the strict performance of,
      any
      covenant or condition of this Lease or any of the Rules and Regulations attached
      hereto shall not be deemed a waiver of such violation nor prevent a subsequent
      act that would have originally constituted a violation from having all the
      force
      and effect of an original violation. The failure of Landlord to enforce any
      of
      said Rules and Regulations against any other tenant in the Building shall not
      be
      deemed a waiver of any such Rules or Regulations. The receipt by Landlord of
      fixed rent or additional rent with knowledge of the breach of any covenant
      of
      this Lease shall not be deemed to be a waiver in writing signed by the Party
      so
      waiving. No consent or waiver, expressed or implied, by Landlord or Tenant
      to or
      of any breach of any agreement or duty shall be construed as a waiver or consent
      to or of any other breach of the same or any other agreement or
      duty.

    

    10.9           No
      Accord and Satisfaction

    

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

    

    10.10Cumulative
      Remedies

    

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

    

    10.11                      Partial
      Invalidity

    

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

    

    10.12                      Landlord's
      Right to Cure Tenant's Default

    

    If
      Tenant shall at any time default in
      the performance of any obligation under this Lease, Landlord shall have the
      right, but shall not be obligated, to enter upon the Premises and to perform
      such obligation notwithstanding the fact that no specific provisions for such
      substituted performance by Landlord is made in this Lease with respect to such
      default. Except in case of emergency, these rights shall be exercised only
      after
      ten (10) days prior written notice from Landlord to Tenant of Landlord's
      intention to do so. In performing such obligation, Landlord may make any payment
      of money or perform any other act. All sums so paid by Landlord, together with
      interest at the rate of eighteen percent (18%) per annum, and all necessary
      incidental costs and expenses in connection with the performance of any such
      act
      by Landlord shall be deemed to be additional rent under this Lease and shall
      be
      payable to Landlord immediately on demand. Landlord may exercise the foregoing
      rights without waiving any other of its rights or releasing Tenant from any
      of
      its obligations under this Lease.

    

    10.13                      Estoppel
      Certificate

    

    Both
      parties agree, from time to time,
      upon not less than fifteen (15) days prior written request by the other party,
      to execute, acknowledge and deliver to the other party a statement in writing
      certifying that this Lease is unmodified and in full force and effect and that
      Tenant has no defenses, offsets or counterclaims against its obligations to
      pay
      the fixed rent and additional rent and to perform its other covenants under
      this
      Lease and that there are no uncured defaults of Landlord or Tenant under this
      Lease (or, if there have been any modifications, that the same is in full force
      and effect as modified and stating the modifications and, if there are any
      defenses, offsets, counterclaims or defaults, setting them forth in reasonable
      detail), and the dates to which the fixed rent, additional rent and other
      charges have been paid. Any such statement delivered pursuant to this Section
      10.13 may be relied upon by any prospective purchaser or mortgagee of the
      Premises or any prospective assignee of any mortgagee of the Premises. Tenant
      agrees to execute one or more Estoppel Certificates substantially in the form
      attached hereto as Exhibit F as so requested by Landlord.

    

    10.14                      Waiver
      of Subrogation

    

    Any
      insurance carried by either party
      with respect to the Premises and property therein or occurrences thereon shall,
      if the other party so requests and if it can be so written without additional
      premium, or with an additional premium with the other party agrees to pay,
      include a clause or endorsement denying to the insurer rights of subrogation
      against the other party to the extent rights have been waived by the insured
      prior to occurrence of injury or loss. Each party, notwithstanding any
      provisions of this Lease to the contrary, hereby waives any rights of recovery
      against the other for injury or loss due to hazards covered by insurance
      contained in such clause of endorsement to the extent of the indemnification
      received thereunder.

    

    10.15                      Brokerage

    

    Tenant
      warrants and represents that it
      has dealt with no broker(s) in connection with this transaction other than
      the
      broker named in Section 1.1 hereof. Tenant agrees to defend, indemnify and
      save
      Landlord from and against any and all claims for a commission or other type
      broker's fee arising as a result of this Lease, other than from the aforesaid
      broker's.

    

    

    

    

    

    10.16                      Security
      Deposit

    

    Upon
      the execution of this Lease,
      Tenant shall pay the Security Deposit set forth in Section 1.1 to Landlord,
      which shall be held as security for Tenant's performance under this Lease.
      The
      Security Deposit shall be refunded to Tenant at the end of the Term, subject
      to
      Tenant's satisfactory compliance with the conditions of this Lease and
      Landlord's approval of the Premises after Tenant has vacated same. Tenant hereby
      agrees not to look to the mortgagee, as mortgagee, mortgagee in possession,
      or
      successor in title to the property, for accountability for any security deposit
      required by Landlord hereunder, unless said sums have actually been received
      by
      said mortgagee as security for Tenant's performance of this Lease.

    

    

    

    ARTICLE
      11 -
      ARBITRATION

    

    

    In
      the event of a dispute between
      Landlord and Tenant with respect to any matter set forth in Section
      9.1(a)(2)(ii) or 9.3 hereof, such dispute shall be arbitrated by three (3)
      arbitrators appointed as follows: Landlord and Tenant shall each appoint a
      fit
      and impartial person as arbitrator who shall have at least ten (10) years
      experience in the Boston Metropolitan Area in a calling connected with the
      subject matter of the dispute. Written notice of such appointment shall be
      given
      by each party to the other within fifteen (15) days of the date upon which
      written notice is given by one party to the other demanding arbitration and
      the
      arbitrators so appointed shall appoint a third arbitrator with like experience
      as stated above. If the arbitrators fail to agree upon a third arbitrator within
      fifteen (15) days of the date upon which the later of such written notices
      of
      appointment of the first two arbitrators is given, such third arbitrator shall
      be appointed by Justice of the Superior Court of the Commonwealth of
      Massachusetts, Middlesex County District, upon ten (10) days notice of the
      institution of proceedings for such Court appointment, or by any other Court
      sitting in said Middlesex County succeeding to the jurisdiction and functions
      exercised by the Superior Court of the Commonwealth of Massachusetts. Any award
      that shall be made in such arbitration by the arbitrators, or a majority of
      them, shall be binding and shall have the same force and effect as a judgment
      made in a court of competent jurisdiction and both Landlord and Tenant shall
      have the right to apply to the aforesaid Superior Court, or to any other court
      sitting in Middlesex County succeeding to the jurisdiction and functions
      exercised by said Superior Court, for a decree, judgment or order upon said
      arbitration or award upon ten (10) days notice to the other party. The fees,
      costs and expenses of arbitration, other than fees for attorneys for the
      parties, expert witnesses and other witness fees, shall be borne equally between
      the parties unless the arbitrators determine that some other division shall
      under the circumstances be more equitable.

    

    

    

    

    

    

    

    EXECUTED
      as a sealed instrument, in two
      or more counterparts which constitute only one instrument, on the day and year
      first above written.

    

    

    LANDLORD:                                                                                                        TENANT:

    

    ATLANTIC-PHILADELPHIA

    REALTY
      LLC

    

    

    

    BY:           /s/David
      Capobianco             
                                        BY:
      __/s/ William
      Santo____________

    

    Print
      Name:__David
      Capobianco______________                                                                                                Print
      Name: __William Santo________

    Title:______Manager______________________                                                                                                Title:
      ______CEO_______________

    

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

    

    

    

    Description
      of Lot

    

    

    

    That
      certain parcel of land on Newbury
      Street in Framingham, Middlesex County, Massachusetts, shown as Lots 2, 3 and
      4
      on a plan entitled "PLAN OF LAND IN FRAMINGHAM, MASS.", dated April 2, 1984,
      prepared by McCarthy & Sullivan Engineering, Inc., recorded with the
      Middlesex South District Registry of Deeds as Plan No. 524 of 1984 in Book
      15583, Page 165 (the "Plan"), bounded and described according to the Plan as
      follows:

    

    WESTERLY:                                           by
      Newbury Street by two courses together totaling two

    hundred
      twenty-two and 19/100 (222.19)
      feet;

    

    NORTHEASTERLY:                                                      by
      an existing thirty-foot drain easement two hundred forty-

    nine
      and 68/100 (249.68)
      feet;

    

    SOUTHEASTERLY:                                                      by
      land now or formerly of Zayre Eighth Realty Corp., two

    hundred
      sixty-three and 84/100
      (263.84) feet;

    

    NORTHEASTERLY:                                                      by
      land now or formerly of said Zayre, by two courses

    together
      totalling two hundred fifteen
      and 80/100

    (215.80)
      feet;

    

    EASTERLY:                                           by
      land now or formerly of Worcester Terminal Corporation

    one
      hundred forty-three and 90/100
      (143.90) feet;

    

    SOUTHWESTERLY:                                                      by
      land now or formerly of said Worcester and land now or

    formerly
      of Rudolph F. and Ruth E.
      Recke, four hundred six

    and
      18/100 (406.18) feet;

    

    WESTERLY:                                           by
      Newbury Street one hundred fifty-six (156.00) feet;

    

    NORTHEASTERLY:                                                      by
      Lot 5 on said Plan, one hundred twenty (120.00) feet;

    

    SOUTHEASTERLY:                                                      by
      Lot 5 on said Plan, sixty-two (62.00) feet; and

    

    SOUTHWESTERLY:                                                      by
      Lot 5 on said Plan, one hundred thirty-six and 56/100 (136.56)
      feet.

    

    Said
      property being known and numbered as 205 Newbury Street. Framingham,
      Mass.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B

    

    

    

    Floor
      Plan of Tenant's Space - SEE ATTACHED

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      C

    

    

    SERVICES
      BY
      LANDLORD

    

    

    
      	
              1.

            	
              A
                heating and air conditioning system which will keep the entire Premises,
                other than storage areas, file rooms, closets, etc., at a comfortable
                temperature for general office use, during normal office/business
                operating hours.

            

    

    

    If
      Tenant
      shall require heating or air conditioning outside said normal office/business
      operating hours, Landlord may furnish such services and Tenant shall pay for
      any
      charges related to same as may from time to time be in effect.

    

    In
      the
      event Tenant introduces into the Premises any type of equipment which overloads
      the capacity of any building system(s) or in any other way interferes with
      any
      such system(s) to perform adequately, supplemental system(s) may, at Landlord's
      option, be provided by Landlord at Tenant's sole cost and expense.

    

    
      	
              2.

            	
              (a)
                Overhead fluorescent light
                fixtures.

            

    

    (b)
      Replacement of fluorescent tubes
      and starters, as needed.

    

    
      	
              3.

            	
              Hot
                and cold water for lavatory and drinking
                purposes.

            

    

    

    
      	
              4.

            	
              Toilet
                supplies in lavatories, including soap, paper or cloth towels and
                toilet
                tissue.

            

    

    

    
      	
              5.

            	
              Janitor
                services in accordance with the following schedule and to be accomplished
                after normal business hours (after 6:00
                P.M.):

            

    

    

    
      	
               

            	
              a)

            	
              Entrance
                Door glass will be cleaned
                nightly.

            

    

    
      	
               

            	
              b)

            	
              Entrance
                Floor will be cleaned and/or polished
                nightly.

            

    

    
      	
               

            	
              c)

            	
              Broadloom
                Carpet areas will be vacuumed nightly. Will be shampooed upon request,
                at additional cost to Tenant.

            

    

    
      	
               

            	
              d)

            	
              Wastepaper
                Containers will be emptied nightly. Plastic liner bags for wastepaper
                containers will be provided and liners will be changed once a
                week.

            

    

    
      	
               

            	
              e)

            	
              Water
                Fountains will be cleaned/polished and sanitized
                nightly.

            

    

    
      	
               

            	
              f)

            	
              Washrooms
                will be cleaned and serviced nightly. This will include refilling
                paper
                towels, toilet tissue and soap dispensers. Emptying and cleaning
                of all
                used towel and trash containers. Clean all stainless steel fixtures.
                Clean
                toilets. Wash and sanitize all wash basins and shelves. Clean all
                mirrors.
                Remove all disfigurations, such as ink marks, drawings, etc. from
                all
                stool partitions and walls. Floors will be mopped
                nightly.

            

    

    
      	
               

            	
              g)

            	
              Scuff
                Marks will be removed nightly from all scuff plates on
                doors.

            

    

    
      	
               

            	
              h)

            	
              Tile
                Floors will be swept nightly and a treated dust preventable mop. All
                corridors and office floors will be cleaned or polished, as needed,
                nightly. Floors will be stripped as
                necessary.

            

    

    
      	
               

            	
              i)

            	
              Time
                of Operation - Services to be performed five (5) nights per week after
                end of normal working hours (after 6:00
                p.m.)

            

    

    

    
      	
              6.

            	
              Proper
                care of grounds surrounding the leased premises, including care of
                lawns
                and shrubs and including maintaining such grounds neat, clean and
                free of
                litter.

            

    

    

    
      	
              7.

            	
              Maintain
                and keep clean the sidewalks and parking areas in front of and around
                the
                building and remove all snow
                therefrom.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      D

    

    

    RULES
      AND REGULATIONS

    

    
      	
              1.

            	
              The
                Landlord should be notified at once of any trouble with heating,
                lighting
                or plumbing fixtures. Tenants will make reasonable efforts to not
                leave
                windows of premises open or unlocked and not to leave the doors of
                the
                premises unlocked at night.

            

    

    

    
      	
              2.

            	
              The
                sidewalks, entries, halls and stairways shall not be obstructed by
                any of
                the tenants or used by them for any other purpose than for ingress
                and
                egress to and from their respective premises, and no articles or
                rubbish,
                of any kind, shall be left therein.

            

    

    

    
      	
              3.

            	
              No
                toilet fixture shall be used for any purpose other than that which
                it is
                intended and no sweepings, rubbish, rags, ashes, or other substances
                shall
                be thrown therein; any damage resulting from so doing shall be born
                by the
                tenant causing

            

    

    

    
      	
              4.

            	
              The
                weight and position of all safes shall be subject to the approval
                of
                Landlord.

            

    

    

    
      	
              5.

            	
              Lettering
                on doors, tablets and building directory shall be subject to the
                approval
                of Landlord. No lettering shall be allowed on outside
                windows.

            

    

    

    
      	
              6.

            	
              No
                wires for telephone service, electric lights, messenger service or
                any
                other purpose shall be put in the premises without the prior consent
                of
                Landlord, which consent shall not be unreasonably delayed or
                withheld.

            

    

    

    
      	
              7.

            	
              No
                glass in doors or elsewhere through which light is admitted into
                any part
                of the building shall be covered, nor such light
                obstructed.

            

    

    

    
      	
              8.

            	
              No
                animals or birds shall be kept in or about the
                building.

            

    

    

    
      	
              9.

            	
              All
                freight, furniture, etc., must be received and delivered through
                the SIDE
                entrance unless otherwise pre-authorized by Landlord and an appointment
                MUST be made with the Landlord to move furniture into or from the
                building, but special arrangements MUST be made with the Landlord
                for the
                moving of all safes.

            

    

    

    
      	
              10.

            	
              Nothing
                shall be thrown or taken from the windows or doors or in the corridors,
                nor shall anything be left outside the building on the window sills
                of the
                premises.

            

    

    

    
      	
              11.

            	
              No
                person shall loiter in the halls, corridors or
                lavoratories.

            

    

    

    
      	
              12.

            	
              The
                Landlord, its employees and other proper persons employed by Landlord
                shall have access, at all reasonable times, to perform their duties
                in the
                upkeep and care of the leased
                premises.

            

    

    

    
      	
              13.

            	
              No
                tenant shall use any method of heating other than that provided for
                in the
                tenant's lease, without special arrangements pre-authorized by
                Landlord.

            

    

    

    
      	
              14.

            	
              The
                Landlord reserves the right to make any such other further rules
                and
                regulations as in its judgment may, from time to time, be needful
                for the
                safety, care and cleanliness of the premises and building and for
                the
                preservation of good order therein. Landlord shall uniformly enforce
                all
                rules and regulations.

            

    

    

    
      	
              15.

            	
              Any
                damage done to the building or premises or person or property therein,
                in
                consequence of any breach of any of the rules and regulations, shall
                be
                borne by the tenant, if tenant is responsible for such
                damage(s).

            

    

    

    
      	
              16.

            	
              No
                person shall smoke in ANY of the common areas, halls, corridors,
                lavatories, stairwells, entry ways of the building, or in tenants
                respective leased premises ­ the Building is a "Smoke Free"
                building.

            

    

    

    
      	
              17.

            	
              Tenants,
                and all of their employees, agents, etc., shall not park illegally;
                i.e.
                no parking in fire lands, traffic lanes, visitor or handicapped spaces,
                reserved spaces, etc. Tenants so parked may be towed and the owner
                of any
                towed vehicle will be solely responsible for the costs incurred for
                same.

            

    

    

    
      	
              18.

            	
              During
                the applicable holiday season, no "live" plants, trees, etc., shall
                be
                place in or near the premises or anywhere in the Building by
                tenants.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      E

    

    ESTOPPEL
      CERTIFICATE

    

    

    TO:           

    

    

    

    

    

    

    

    
      	
              RE:

            	
              Lease
                Dated:

            

    

    Lease
      Amendments (if any)
      Dated:

    Landlord:                      Atlantic-Philadelphia
      Realty LLC

    Demised
      Premises:

    

    Gentlemen:

    

    The
      undersigned ("Tenant") is the
      Tenant under the above-captioned Lease (said Lease, together with all amendments
      thereto (if any) hereafter the "Lease"), and, understanding that the Lender
      will
      rely on the representations and agreements below in granting a loan (the "Loan")
      to the above-named Landlord to be secured by a mortgage upon the premises of
      which the Demised Premises are a part, hereby acknowledges, certifies and
      represents to the Lender that:

    

    
      	
              1.

            	
              A
                true and accurate copy of the Lease is attached hereto. The Lease
                represents the entire understanding between Landlord and Tenant with
                respect to the leasing of the Demised Premises and, except as modified
                by
                the Lease Amendments noted above (if any), has not been otherwise
                altered,
                modified or amended. The Lease has been duly authorized, executed
                and
                delivered by Tenant, is in full force and effect in accordance with
                its
                terms, and constitutes a legally valid instrument, binding and enforceable
                against Tenant in accordance with its terms, subject only to applicable
                limitations imposed by laws relating to bankruptcy and creditors'
                rights.

            

    

    

    
      	
              2.

            	
              Tenant
                has accepted possession of the Demised Premises and is in occupancy
                under
                the Lease. The initial term of the Lease commenced on
                   and expires on . Tenant
                has right to extend the original term of the Lease as set
                forth in the Lease (or has no right, whichever is applicable) and
                Tenant
                has no right to acquire or purchase the Demised Premises or any portion
                thereof or interest therein.

            

    

    

    
      	
              3.

            	
              The
                obligation to pay rent under the Lease commenced on All rent payable
                by
                Tenant through the date of this letter has been paid. Rent has not
                been
                paid for any period beyond the now current monthly rent due, except
                as
                expressly provided in the Lease. To the best of Tenant's knowledge,
                there
                exists no default with respect to any of the terms, covenants and
                conditions of the Lease by the Landlord or the Tenant to be performed,
                and
                there is no condition or event which could ripen into a default upon
                the
                lapse of time or the giving of notice. There are no offsets, deductions,
                or credits against the rents due and payable under the
                Lease.

            

    

    

    WITNESS
      the execution hereof under seal this   day of 

    

    

    

    TENANT:                                                                                                

    

    BY:                                                                           

    (duly
      authorized)

    Print/Type
      Name & Title:

    

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      F

    DESCRIPTION
      OF LANDLORD’S WORK

    

    
      	
              1.)  

            	
              Removal
                & Installation of New Carpet & Cove Base based on Tenant Selection
                Choices.

            

    

    
      	
              2.)  

            	
              Patch
                & Paint all Walls, Doors, Door Jambs, & Columns based on
                Tenant Selection Choices.

            

    

    
      	
              3.)  

            	
              Replace
                Main Entry Door with a replica of the 4th Floor Atlantic Management
                Office
                .(Only Door)

            

    

    
      	
              4.)  

            	
              Remove
                Double Doors entry to Conf Room and replace with a new single entry
                Mahogany Door.

            

    

    
      	
              5.)  

            	
              Install
                4 ft Glass Side Light to the right of the Conf Entry
                Door.

            

    

    
      	
              6.)  

            	
              Wire
                all High Height Lights in Conference Room on Dimmer
                Switches.

            

    

    
      	
              7.)  

            	
              Have
                all Door Locks for Offices Keyed with 1 Master Key for all
                Offices.

            

    

    
      	
              8.)  

            	
              All
                Carpet, Base, & Color Selections need to be received in writing before
                June 25  to ensure a target date of August  1
                occupancy.

            

    

    
      	
              9.)  

            	
              Build
                2 new offices near the existing
                offices.

            

    

    
      	
              10.)  

            	
              Install
                kitchen counter with sink

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