Document:

Exhibit 4.4

a.   The Company shall issue and sell to the
Underwriters $1,400,000,000 aggregate principal amount of 2.85% Convertible
Senior Debentures due 2027 (the “Debentures”) at a price equal to 98.00%
of the aggregate principal amount thereof plus accrued interest, if any, from
March 27, 2007, if settlement occurs after that date; and it is

b.   The Company has granted to the Underwriters
an option for 30 days to purchase up to an additional $210,000,000 aggregate
principal amount of 2.85% Convertible Senior Debentures at a price equal to
98.00% of the aggregate principal amount thereof, plus accrued interest, if
any, from March 27, 2007, solely to cover over-allotments; and it is

c.   The Company has caused the Operating
Partnership to guarantee the Debentures on the terms set forth herein; and it
is

d.   There is
hereby approved and established a series of Debt Securities under the Indenture
whose terms are as follows:

(a)                                  The
Securities of such series are known as the “2.85% Convertible Senior Debentures
due 2027” of the Company.

(b)                                 The
Debentures are unsecured and rank equally among themselves and with all of the
Company’s other unsecured and unsubordinated indebtedness.

(c)                                  The
aggregate principal amount of the Security of such series which may be
authenticated and delivered under the Indenture is initially limited in
aggregate principal amount to $1,400,000,000, as such amount may be increased,
but not by an amount in excess of $210,000,000, solely as a result of the
purchase of additional Debentures pursuant to the underwriter’s over-allotment
option granted by the Company under the Underwriting Agreement, except for
Debentures authenticated and delivered upon registration of transfer of, or in
exchange for, or in lieu of, other Debentures pursuant to Section 304,
305, 306, 906, 1107 or 1203 of the Indenture and except for any Debentures
which, pursuant to Section 303 of the Indenture, are deemed never to have
been authenticated and delivered thereunder; provided
that the Company may from time to time, without notice to or the consent of the
Holders of the Securities of this series, create and issue further Securities
of this series (the “Additional Securities”) having the same terms and
ranking equally and ratably with the Securities of this series in all respects
and with the same CUSIP number as the Securities of this series, or in all
respects except for the payment of interest accruing prior to the Issue Date or
except for the first payment of interest following the issue date of such
Additional Securities; and provided that no such Additional Securities may be
issued

                                                unless
fungible with the Debentures then outstanding for United States federal income
tax purposes.  Any Additional Securities
will be consolidated and form a single series with the Securities and shall
have the same terms as to status, redemption and otherwise as the Securities.  Any Additional Securities may be issued
pursuant to authorization provided by a resolution of the Board of Trustees of
the Company, the Pricing Committee, a supplement to the Indenture, or under an
Officers’ Certificate pursuant to the Indenture.

(d)                                 The
Debentures shall be issued only in registered form without coupons in
denominations of $1,000 original principal amount and any integral multiple of
$1,000 above that amount.

(e)                                  The
Debentures shall be issuable in the form of one or more Global Securities
registered in the name of The Depository Trust Company’s nominee, and shall be
deposited with, or on behalf of, The Depository Trust Company, New York, New
York (“DTC”).  The Debentures may be
surrendered for registration of transfer and for exchange at the office or
agency of the Company or of the Trustee maintained for such purpose in the
Borough of Manhattan, The City of New York, or at any other office or agency
maintained by the Company or the Trustee for such purpose.

(f)                                    The
Stated Maturity of the principal of the Debentures shall be April 1, 2027.

(g)                                 The
Debentures shall bear interest at the rate of 2.85% per annum from March 27,
2007 or from the most recent Interest Payment Date to which interest has been
paid or duly provided for, as the case may be, payable semi-annually on April 1
and October 1 of each year, commencing on October 1, 2007, until the principal
thereof is paid or made available for payment, to the Persons in whose name
such Debentures (or any Predecessor Debentures) are registered at the close of
business on the Regular Record Date (or in the case of Defaulted Interest, the
Special Record Date) next preceding the Interest Payment Date.  Each April 1 and October 1 shall be an
Interest Payment Date for the Debentures, and March 15 and September 15
(whether or not a Business Day), as the case may be, next preceding an Interest
Payment Date shall be the Regular Record Date for the interest payable on such
Interest Payment Date.  Interest will be
computed on the basis of a 360-day year consisting of twelve 30-day months.

(h)                                 The
principal of, and the interest on, the Debentures shall be payable at the
office or agency of the Company or the Trustee maintained for such purpose in
the Borough of Manhattan, The City of New York, as set forth in the form of
Debenture attached hereto as Annex B; provided,
however, that at the option of
the Company payment of interest may be made by check mailed to the address of
the Person entitled thereto as such address

 2
 

                                                shall
appear in the Security Register; and
provided, further, that if the Debenture is in the form of a Global
Security, payment may be made pursuant to the applicable procedures of the
Depositary.

(i)                                     Guarantee. 
The Debentures are fully and unconditionally guaranteed by the Operating
Partnership as to all payments due on the Debentures whether at their stated
maturity date, by acceleration, redemption, repayment or otherwise in
accordance with the terms of such guarantee and the Indenture.  In the case of the failure of the Company to
pay punctually any principal, premium or interest on the Debentures, the Operating
Partnership will cause any such payment to be made as it becomes due and
payable, whether at maturity, upon acceleration, redemption, repayment or
otherwise.

The Guarantee
shall be unsecured and unsubordinated indebtedness of the Operating Partnership
and rank equally with other unsecured and unsubordinated indebtedness of the
Operating Partnership that is currently outstanding or that it may issue in the
future.  The Guarantee shall be subject
to the terms set forth in Article Fourteen of the Indenture and the form of
Debentures approved pursuant to these resolutions.

(j)                                     Redemption Rights.  The Debentures shall be redeemable in whole
or in part in accordance with Article Eleven of the Indenture except as
modified herein and in the form of Debenture attached as Annex B
hereto.  Any election by the Company to
redeem the Debentures shall be evidenced by a resolution of the Board of
Trustees of the Company or the Pricing Committee.

The Company shall not have the right to redeem any
Debentures prior to April 5, 2012, except to preserve the Company’s status as a
real estate investment trust.  If the
Company determines it is necessary to redeem the Debentures in order to
preserve the Company’s status as a real estate investment trust, the Company
will redeem all of the Debentures then outstanding at 100% of the principal
amount of the Debentures plus accrued and unpaid interest, if any, to the
Redemption Date.  In such case, the
Company shall provide the Trustee with an Officers’ Certificate evidencing that
the Board of Trustees of the Company has, in good faith, made the determination
that it is necessary to redeem the Debentures in order to preserve the Company’s
status as a real estate investment trust.

The Company shall have the right to redeem for cash the
Debentures in whole or in part, at any time or from time to time, on or after
April 5, 2012 upon not less than 30 nor more than 60 days’ prior notice by
mail to the registered holders of the Debentures, at 100% of the aggregate
principal amount of the Debentures, plus accrued and unpaid interest, if any,
to but excluding the Redemption Date.

 3
 

If less than all of the outstanding Debentures are to
be redeemed, the Trustee shall select the Debentures to be redeemed pro rata or by lot or by any other method the Trustee
considers fair and appropriate.  The
Trustee shall make the selection at least 30 days but not more than
60 days before the Redemption Date from outstanding Debentures not
previously called for redemption. 
Debentures and portions of them the Trustee selects shall be in
Principal Amounts at Maturity of $1,000 or an integral multiple of $1,000.  Provisions of this Indenture that apply to
the redemption of Debentures called for redemption apply to portions of
Debentures not called for redemption.  The Trustee shall notify the Company promptly
of the Debentures or portions of Debentures to be redeemed.  If any Debenture selected for partial
redemption is converted in part before termination of the conversion right with
respect to the portion of the Debenture so selected, the converted portion of
such Debenture shall be deemed to be the portion selected for redemption.  Debentures that have been converted during a
selection of Debentures to be redeemed may be treated by the Trustee as
outstanding for the purpose of such selection.

In the event of any redemption in part, the Company
will not be required to:  (a) issue
or register the transfer or exchange of any Debenture during a period beginning
at the opening of business 15 Business Days before any selection of
Debentures for redemption and ending at the close of business on the earliest
date on which the relevant notice of redemption is deemed to have been given to
all holders of Debentures to be so redeemed, or (b) register the transfer
or exchange of any Debenture so selected for redemption, in whole or in part,
except the unredeemed portion of any Debenture being redeemed in part.

At least 30 days but not more than 60 days
before a Redemption Date, the Company shall mail a notice of redemption by first-class
mail, postage prepaid, to each Holder of Debentures to be redeemed.

The notice shall identify
the Debentures to be redeemed and shall state:

(1)                                  the
Redemption Date;

(2)                                  the
Redemption Price and accrued and unpaid cash interest, if any, payable on the
Redemption Date;

(3)                                  the
Conversion Rate;

(4)                                  the
name and address of the Paying Agent and Conversion Agent;

(5)                                  that
Debentures called for redemption may be converted at any time before the close
of business on the second Business Day immediately preceding the Redemption
Date, even if not otherwise convertible at such time;

 4
 

(6)                                  that
Holders who want to convert Debentures must satisfy the requirements set forth
herein and as set forth under “Conversion Procedures” in the form of Debenture;

(7)                                  that
Debentures called for redemption must be surrendered to the Paying Agent to
collect the Redemption Price and accrued and unpaid interest, if any;

(8)                                  if
fewer than all the outstanding Debentures are to be redeemed, the certificate
number and Principal Amounts at Maturity of the particular Debentures to be
redeemed;

(9)                                  that,
unless the Company defaults in making payment of such Redemption Price and any
cash interest which is due and payable, interest will cease to accrue on and
after the Redemption Date;

(10)                            the
CUSIP number of the Debentures;

(11)                            in the
case of redemption prior to April 5, 2012 necessary to preserve the Company’s
status as a real estate investment trust, a copy of the Officers’ Certificate
described in the second paragraph of this paragraph (j); and

(12)                            any
other information the Company wants to present.

Once notice of redemption is given,
Debentures called for redemption become due and payable on the Redemption Date
and at the Redemption Price (together with accrued and unpaid interest, if any,
to the date of redemption) stated in the notice except for Debentures which are
converted in accordance with the terms of the Debentures and the
Indenture.  Upon surrender to the Paying
Agent, such Debentures shall be paid at the Redemption Price (together with
accrued and unpaid interest, if any, to the date of redemption) stated in the
notice.

At the time notice of redemption is given,
the Company will issue a press release through Dow Jones & Company,
Inc., Bloomberg Business News, the Company’s website, or through such other
means or combination of means used by the Company to disseminate information to
the public, stating (i) that Debentures called for redemption must be
received by the Paying Agent no later than the close of business on the second
Business Day immediately preceding the Repurchase Date, (ii) the
Debentures’ certificate number; (iii) the portion of the principal amount
of Debentures to be repurchased, in multiples of $1,000; and (iv) that the
Debentures are to be repurchased by the Company pursuant to the applicable
provisions of the Debentures.

 5
 

(k)                                  Repurchase Rights.  Debentures shall be purchased by the Company
in accordance with the terms hereof and as set forth under “Repurchase Rights”
in the form of Debenture on each of April 1, 2012, April 1, 2017 and April 1,
2022 (each, a “Repurchase Date”), at the purchase price of 100% of the
aggregate principal amount of the Debentures plus, in each case, accrued and
unpaid interest, if any, to but excluding the Repurchase Date (each, a “Repurchase”,
as applicable), at the option of the Holder thereof, upon:

(1)                                  delivery
to the Paying Agent by the Holder of a written notice of repurchase (a “Repurchase
Notice”) at any time from the opening of business on the date that is
60 Business Days prior to a Repurchase Date until the close of business on
the fifth Business Day prior to such Repurchase Date stating:

(A)                              the
certificate number of the Debenture which the Holder will deliver to be
purchased;

(B)                                the
portion of the principal amount which the Holder will deliver to be
repurchased, which portion must be a principal amount of $1,000 or an integral
multiple thereof; and

(C)                                that
such Debenture shall be purchased as of the Repurchase Date pursuant to the
terms and conditions specified herein and as set forth under “Repurchase Rights”
in the form of Debenture, and

(2)                                  delivery
of such Debenture to the Paying Agent prior to the Repurchase Date (together
with all necessary endorsements) at the offices of the Paying Agent, such
delivery being a condition to receipt by the Holder of the Repurchase Price
therefor; provided, however,
that such Purchase Price shall be so paid pursuant to this paragraph only if
the Debenture so delivered to the Paying Agent shall conform in all respects to
the description thereof in the related Repurchase Notice, as determined by the
Company.

The Company shall purchase from the Holder
thereof, pursuant to this paragraph and the terms of the Debentures, a portion
of a Debenture if the principal amount of such portion is $1,000 or an integral
multiple of $1,000.  Provisions of this
Indenture that apply to the purchase of all of a Debenture also apply to the
purchase of such portion of such Debenture.

Any repurchase contemplated by the Company
shall be consummated by the delivery of the consideration to be received by the
Holder (together

 6
 

with accrued and unpaid interest, if any)
promptly following the later of the Repurchase Date and the time of delivery of
the Debenture.

Notwithstanding anything herein to the
contrary, any Holder delivering to the Paying Agent the Repurchase Notice shall
have the right to withdraw such Repurchase Notice at any time prior to the
close of business on the second Business Day prior to the Repurchase Date by
delivery of a written notice of withdrawal to the office of the Paying Agent
stating:

(1)                                  the
certificate number of the Debenture in respect of which such notice of
withdrawal is being submitted;

(2)                                  the
principal amount of the Debenture with respect to which such notice of
withdrawal is being submitted; and

(3)                                  the
principal amount of such Debenture which remains subject to the original
Repurchase Notice or and which has been or will be delivered for purchase by
the Company.

The Company may arrange for a third party to
purchase Debentures for which the Company has received a valid notice of
repurchase that has not been properly withdrawn.  If the Company establishes such an
arrangement, then interest will continue to accrue on the Debentures and such
Debentures will continue to be outstanding for all purposes of the Indenture.

The Paying Agent shall promptly notify the
Company of the receipt by it of any Repurchase Notice or written notice of
withdrawal thereof.

(l)                                     Repurchase at Option of Holders upon a Change in
Control.  If there shall have
occurred a Change in Control at any time prior to April 1, 2012, a Holder of
Debentures shall have the right to require the Company to repurchase all of its
Debentures not previously called for redemption, or any portion of the
principal amount thereof, that is equal to $1,000 or an integral multiple of
$1,000, at a cash purchase price equal to 100% of the principal amount of all
Debentures it requires the Company to repurchase, plus accrued and unpaid
interest on those Debentures to, but excluding, the Repurchase Date (such
amount, the “Change in Control Purchase Price”) subject to satisfaction
by or on behalf of the Holder of the requirements set forth below.

Within 15 days after the occurrence of a
Change in Control, the Operating Partnership shall mail a written notice of
Change in Control by first-class mail to the Trustee and to each Holder (and to
beneficial owners as required by applicable law and procedures of DTC.  The notice shall include a form of Change in
Control Purchase Notice to be completed by the Holder and shall state:

 7
 

(1)                                  briefly,
the events causing a Change in Control and the date of such Change in Control;

(2)                                  the
date by which the irrevocable Change in Control Purchase Notice pursuant to
this paragraph must be given, which must be on or before the 20th Business
Day after issuance by the Operating Partnership of notice to Holders that a
Change in Control had occurred;

(3)                                  the
date on which the Operating Partnership will repurchase Debentures upon a
Change in Control, which must be not less than 20 nor more than
30 Business Days after the date of the Operating Partnership’s issuance of
notice to Holders that a Change in Control had occurred (such date, the “Change
in Control Purchase Date”);

(4)                                  the
Change in Control Purchase Price;

(5)                                  the
name and address of the Paying Agent and the Exchange Agent;

(6)                                  that
Debentures must be surrendered to the Paying Agent to collect payment of the
Change in Control Purchase Price and accrued and unpaid interest, if any;

(7)                                  that
the Change in Control Purchase Price for any Debenture as to which a Change in
Control Purchase Notice has been duly given will be paid promptly following the
later of the Change in Control Purchase Date and the time of surrender of such
Debenture;

(8)                                  that,
unless the Company defaults in making payment of such Change in Control
Purchase Price and interest, if any on Debentures surrendered for purchase,
interest on Debentures surrendered for purchase will cease to accrue on and
after the Change in Control Purchase Date; and

(9)                                  the
CUSIP number of the Debentures.

A Holder may exercise its rights specified in
this paragraph upon delivery of a written notice of purchase (a “Change in
Control Purchase Notice”) to the Paying Agent at any time prior to the
close of business not more than 20 Business Days following the date of the
Operating Partnership’s notice to Holders of the Change in Control, stating:

(1)                                  the
certificate number of the Debentures which the Holder will deliver to be
purchased;

 8
 

(2)                                  the
principal amount of the Debenture which the Holder will deliver to be
purchased, which must be $1,000 or an integral multiple thereof; and

(3)                                  that
such Debenture shall be purchased pursuant to the terms and conditions
specified herein and as set forth under “Repurchase at Option of Holders upon a
Change in Control” in the form of Debenture.

The delivery of the Debentures to the Paying
Agent prior to, on or after the Change in Control Purchase Date (together with
all necessary endorsements) at the offices of the Paying Agent shall be a condition
to the receipt by the Holder of the Change in Control Purchase Price therefor; provided, however, that
such Change in Control Purchase Price shall be so paid only if the Debentures
so delivered to the Paying Agent shall conform in all respects to the
description thereof set forth in the related Change in Control Purchase Notice.

The Company shall purchase from the Holder
thereof, a portion of a Debenture if the principal amount of such portion is
$1,000 or an integral multiple of $1,000. 
Provisions of this Indenture that apply to the purchase of all of a
Debenture also apply to the purchase of such portion of such Debenture.

The Paying Agent shall promptly notify the
Company of the receipt by it of any Change in Control Purchase Notice.

Notwithstanding the foregoing, no Debentures
may be purchased by the Company at the option of a Holder upon a Change in
Control if the principal amount of the Debentures has been accelerated and such
acceleration has not been rescinded on or prior to such date.

If a Change in Control occurs on or after
April 1, 2012, no holder will have the right to require the Operating
Partnership to purchase any Debentures pursuant to this paragraph (l).

A “Change in Control” will be deemed
to have occurred at any time after March 27, 2007 that any of the following
occurs:

(1)                                  consummation
of any transaction or event (whether by means of a liquidation, share exchange,
tender offer, consolidation, recapitalization, reclassification, combination,
merger of the Company or any sale, lease or other transfer of all or
substantially all of the consolidated assets of the Company and its
subsidiaries) or a series of related transactions or events pursuant to which
Common Shares are exchanged for, converted into or constitute solely the right
to receive cash, securities or other property

 9
 

                                                more
than 10% of which consists of cash, securities or other property that are not,
or upon issuance will not be, traded on a national securities exchange;

(2)                                  any
“person” or “group” (as such terms are used for purposes of Sections 13(d)
and 14(d) of the Exchange Act, whether or not applicable), other than the
Company, the Operating Partnership or any majority owned subsidiary of the
Company or the Operating Partnership, is or becomes the “beneficial owner,”
directly or indirectly, of more than 70% of the total voting power in the
aggregate of all classes of the Company’s capital stock  then outstanding entitled to vote generally
in elections of trustees, directors or managers, as applicable; or

(3)                                  during
any period of 12 consecutive months after the date of original issuance of
the Debentures, persons who at the beginning of such 12-month period
constituted the Board of Trustees of the Company (together with any new persons
whose election was approved by a vote of a majority of the persons then still
comprising the Board of Trustees who were either members of the Board of
Trustees at the beginning of such period or whose election, designation or
nomination for election was previously so approved) cease for any reason to
constitute a majority of the board of trustees of the Company, then in office.

However, a Change in Control will not be
deemed to have occurred and the Operating Partnership will not be required to
deliver a notice incidental thereto if either:

(1)                                  the
closing sale price per share of Common Shares of the Company for any five
trading days within the period of 10 consecutive trading days ending
immediately after the later of the Change in Control or the public announcement
of the Change in Control, in the case of a Change in Control relating to an
acquisition of capital stock, or the period of 10 consecutive trading days
ending immediately after the Change in Control, in the case of Change in
Control relating to a merger, consolidation or asset sale, equals or exceeds
105% of the exchange price of the Debentures in effect on each of those trading
days; provided, however, that the exception to the definition of “Change in
Control” specified in this clause (1) shall not apply in the context of a
“Change in Control” as described below in paragraph (m) or in paragraph (o)(4);
or

 10
 

(2)                                  at
least 90% of the consideration (excluding cash payments for fractional shares
and cash payments made pursuant to dissenters’ appraisal rights) in a merger,
consolidation or other transaction otherwise constituting a Change in Control
consists of shares of common stock, depositary receipts or other certificates
representing common equity interests traded on a national securities exchange
or another established automated over-the-counter trading market in the United
States (or will be so traded or quoted immediately following the merger or
consolidation) and as a result of the merger, consolidation or other
transaction the Debentures become exchangeable into such shares of common
stock, depositary receipts or other certificates representing common equity
interests.

Upon receipt by the Paying Agent of the
Repurchase Notice or Change in Control Purchase Notice, the Holder of the
Debentures in respect of which such Repurchase Notice or Change in Control
Purchase Notice, as the case may be, was given shall (unless such Repurchase
Notice is withdrawn as specified below) thereafter be entitled to receive
solely the Repurchase Price or Change in Control Purchase Price, as the case
may be, with respect to such Debenture. 
Such Repurchase Price or Change in Control Purchase Price shall be paid
to such Holder, subject to receipt of funds and/or Debentures by the Paying
Agent or Conversion Agent, promptly following the later of (x) the Repurchase
Date or the Change in Control Purchase Date, as the case may be, with respect
to such Debentures (provided the conditions set forth in these resolutions and
the Debentures for such payment are satisfied) and (y) the time of
delivery of such Debentures to the Paying Agent by the Holder thereof in the
manner required herein.  Debentures in
respect of which a Repurchase Notice or Change in Control Purchase Notice, as
the case may be, has been given by the Holder thereof may not be exchanged on
or after the date of the delivery of such Repurchase Notice or Change of
Control Purchase Notice, as the case may be, unless, solely in the case of a
Repurchase Notice, it has first been validly withdrawn as specified below.

A Repurchase Notice may be withdrawn by means
of a written notice of withdrawal delivered to the office of the Paying Agent
prior to the close of business on the second Business Day prior to the
Repurchase Date specifying:

(1)                                  the
certificate number of the Debenture in respect of which such notice of
withdrawal is being submitted;

(2)                                  the
principal amount of the Debenture with respect to which such notice of
withdrawal is being submitted; and

 11

 

(3)                                  the principal amount
of such Debenture which remains subject to the original Purchase Notice or and
which has been or will be delivered for purchase by the Company.

Prior to 10:00 a.m., New York City time, on the Repurchase Date or
the Change in Control Purchase Date, as the case may be, the Company shall
deposit with the Trustee or with the Paying Agent (or, if the Company or a
Subsidiary or an Affiliate of either of them is acting as the Paying Agent,
shall segregate and hold in trust as provided in the Indenture) an amount of
money (in immediately available funds if deposited on such Business Day)
sufficient to pay the aggregate Repurchase Price or Change in Control Purchase
Price, as the case may be, all the Debentures or portions thereof which are to
be purchased as of the Repurchase Date or Change in Control Purchase Date, as
the case may be.

(m)                               Make Whole Amount Upon Certain Change in Control
Transactions.  If a
transaction described in clause (1) or clause (2) of the definition of Change
in Control occurs on or prior to April 5, 2012, and a Holder elects to convert
its Debentures in connection with such transaction, the Company will increase
the applicable Conversion Rate for the Debentures surrendered for conversion by
a number of additional Common Shares of the Company (the “Additional Shares”),
as described below.  A conversion of
Debentures shall be deemed for these purposes to be “in connection with” such a
Change in Control if the notice of conversion of the Debentures is received by
the Conversion Agent on or after the 15th Business Day prior to the
anticipated effective date of the Change in Control and on or prior to the
fifth Business Day following the effective date of the Change in Control (or,
if earlier and to the extent applicable, the close of business on the second
Trading Day immediately preceding the day on which the Company is required to
repurchase Debentures upon a Change in Control as described in paragraph (l)
above).

The number of Additional
Shares will be determined by reference to the table below and is based on the
date on which such Change in Control transaction becomes effective (the “effective
date”) and the price (the “stock price”) paid per Common Share in
such transaction.  If the holders of
Common Shares receive only cash in the Change in Control transaction, the stock
price shall be the cash amount paid per Common Share.  Otherwise, the stock price shall be the
average of the closing sale prices of Common Shares on the 10 Trading Days
up to but excluding the effective date.

The stock prices set
forth in the first row of the table (i.e., the column headers) will be adjusted
as of any date on which the Conversion Rate of the Debentures is adjusted.  The adjusted stock prices will equal the
stock prices applicable immediately prior to such adjustment multiplied by a
fraction, the numerator of which is the Conversion Rate immediately prior

 12
 

to the adjustment giving
rise to the stock price adjustment and the denominator of which is the
Conversion Rate as so adjusted.  The right
to receive the Additional Shares will be subject to adjustment in the same
manner as the Conversion Rate.

The following table sets
forth the stock price and number of Additional Shares to be received per $1,000
principal amount of Debentures:

	
  Effective

  	
   

  	
  Stock Price

  	
   

  
	
  Date

  	
   

  	
  $124.97

  	
   

  	
  $135.00

  	
   

  	
  $145.00

  	
   

  	
  $155.00

  	
   

  	
  $165.00

  	
   

  	
  $175.00

  	
   

  	
  $185.00

  	
   

  	
  $195.00

  	
   

  	
  $205.00

  	
   

  	
  $215.00

  	
   

  	
  $225.00

  	
   

  	
  $235.00

  	
   

  	
  $245.00

  	
   

  
	
  March 27, 2007

  	
   

  	
  1.8466

  	
   

  	
  1.3347

  	
   

  	
  1.0330

  	
   

  	
  0.7931

  	
   

  	
  0.6023

  	
   

  	
  0.4507

  	
   

  	
  0.3308

  	
   

  	
  0.2362

  	
   

  	
  0.1622

  	
   

  	
  0.1050

  	
   

  	
  0.0615

  	
   

  	
  0.0300

  	
   

  	
  0.0097

  	
   

  
	
  April 1, 2008

  	
   

  	
  1.8466

  	
   

  	
  1.3322

  	
   

  	
  1.0203

  	
   

  	
  0.7743

  	
   

  	
  0.5805

  	
   

  	
  0.4283

  	
   

  	
  0.3093

  	
   

  	
  0.2169

  	
   

  	
  0.1458

  	
   

  	
  0.0917

  	
   

  	
  0.0515

  	
   

  	
  0.0230

  	
   

  	
  0.0054

  	
   

  
	
  April 1, 2009

  	
   

  	
  1.8466

  	
   

  	
  1.3167

  	
   

  	
  0.9911

  	
   

  	
  0.7373

  	
   

  	
  0.5403

  	
   

  	
  0.3884

  	
   

  	
  0.2720

  	
   

  	
  0.1837

  	
   

  	
  0.1175

  	
   

  	
  0.0687

  	
   

  	
  0.0338

  	
   

  	
  0.0109

  	
   

  	
  0.0000

  	
   

  
	
  April 1, 2010

  	
   

  	
  1.8466

  	
   

  	
  1.2803

  	
   

  	
  0.9349

  	
   

  	
  0.6705

  	
   

  	
  0.4705

  	
   

  	
  0.3212

  	
   

  	
  0.2113

  	
   

  	
  0.1317

  	
   

  	
  0.0749

  	
   

  	
  0.0358

  	
   

  	
  0.0112

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  
	
  April 1, 2011

  	
   

  	
  1.8466

  	
   

  	
  1.2185

  	
   

  	
  0.8337

  	
   

  	
  0.5477

  	
   

  	
  0.3433

  	
   

  	
  0.2030

  	
   

  	
  0.1102

  	
   

  	
  0.0515

  	
   

  	
  0.0170

  	
   

  	
  0.0012

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  
	
  April 5, 2012

  	
   

  	
  1.8466

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  

The exact stock prices and effective dates may not be set forth on the
table, in which case:

(1)                                  if the stock price is
between two stock price amounts on the table or the effective date is between
two dates on the table, the additional shares will be determined by
straight-line interpolation between the number of Additional Shares set forth
for the higher and lower stock price amounts and the two dates, as applicable,
based on a 365-day year;

(2)                                  if the stock price is
equal to or in excess of $245.00 per share (subject to adjustment), no
Additional Shares will be issued upon conversion; and

(3)                                  if the stock price is
less than $124.97 per share (the closing sale price of Common Shares on the
date of the prospectus (subject to adjustment), no Additional Shares will be
issued upon conversion.

Notwithstanding the
foregoing, in no event will the total number of Common Shares issuable upon
conversion exceed 8.0019 per $1,000 principal amount of Debentures, subject to
adjustment in the same manner as the Conversion Rate.

(n)                                 Conversion Settlement.  A
Holder of Debentures may, subject to the restrictions on ownership of Common
Shares set forth in the Company’s Declaration of Trust and the conditions
described in paragraphs (o) and (q) below, for cash, Common Shares, if any, or
a combination of cash and Common Shares, at the Company’s option, at the
Conversion Rate in effect at the time of conversion (6.1553 Common Shares per $1,000
principal amount of Debentures on March 27, 2007).  Subject to such

 13
 

                                                restrictions, the Company will deliver, in
respect of each $1,000 principal amount of Debentures tendered for conversion:

cash in an amount (the “Principal Return”) equal to the lesser
of (a) the principal amount of Debentures surrendered for conversion and (b)
the Conversion Value, and

if the Conversion Values are greater than the principal return, an
amount (the “Net Amount”) in cash or Common Shares, as determined by the
Company, with an aggregated value equal to the difference between the
Conversion Value and the Principal Return as described herein.

The Company may elect to
deliver any portion of the Net Amount in cash or Common Shares, and any portion
of the net amount the Company elects to deliver in Common Shares (the “Net
Shares”) will be the sum of the daily share amounts (calculated as
described below) for each Trading Day during the applicable conversion
period.  Prior to the close of  business on the second Trading Day following
the date on which Debentures are tendered for conversion, the Company will, by
notice to the trustee, inform holders of such Debentures of the Company’s
election to pay cash for all or a portion of the Net Amount and, if applicable,
the portion of the Net Amount that will be paid in cash and the portion that
will be delivered in the form of Net Shares, unless the Company has previously
informed such holders of such election in a notice of redemption for
Debentures.

The Company will deliver
cash in lieu of any fractional Common Shares issuable in connection with
payment of Net Shares based upon the average price.

The “Conversion Value” for each $1,000 principal amount of
Debenture is equal to (a) the applicable Conversion Rate multiplied by (b) the
Average Price.

The “applicable conversion period” means the 10 consecutive
Trading Day periods commencing after the second Trading Day following the date
the Debentures are tendered for conversion.

The “Average Price” is equal to the average of the closing sales
prices of Common Shares for each trading day in the applicable conversion
period.

The “Daily Share Amount” for each $1,000 principal amount of
Debentures and each trading day in the applicable conversion period is equal to
the greater of:

·                  Zero;
and

 14
 

·                  A
number of Common Shares determined by the following formula:

(closing sale price of Common Shares on such
trading day × applicable conversion rate) - ($1,000 + net cash amount, if any)

_____________________________________________________

(10 × closing price of Common Shares on such
trading day)

The Conversion Value, Principal Return, Net Amount, Net Cash Amount and
the number of Net Shares, as applicable, will be determined by the Company
promptly after the end of the applicable conversion period.  The Company will pay the principal return and
cash in lieu of fraction shares, and deliver net shares or pay the net cash
amount, as applicable, no later than the third business day following the last
Trading Day of the applicable conversion period.

(o)                                 Conversion Rights.  In connection with a conversion with respect
to which the Company settles entirely in Common Shares, no fractional Common
Shares will be delivered upon conversion of the Debentures.  Instead, the Company will pay the cash value
of such fractional shares in connection with such settlement based upon the
closing sale price of Common Shares on the Trading Day immediately preceding
the Conversion Date.

(1)                                  The Conversion Date
is the date on which a Holder delivers an irrevocable notice of conversion of
Debentures (the “Conversion Notice”), together, if the Debentures are in
certificated form, with the certificated Debenture to the Conversion Agent.

(2)                                  If a Debenture has
been called for redemption, Holders will be entitled to convert such Debenture
from the date of notice of the redemption until the close of business on the
second Business Day immediately preceding the Redemption Date.  The right to convert will expire at that
time, unless the Company defaults in making the payment due upon redemption.  A Holder may convert fewer than all of such
Holder’s Debentures so long as the Debentures converted are an integral
multiple of $1,000 principal amount.

(3)                                  Upon surrender of a
Debenture for conversion into Common Shares, such Holder shall deliver to the
Company cash equal to the amount that the Company is required to

 15
 

                                                deduct
and withhold under applicable law in connection with the conversion; provided, however, if the Holder does not deliver such cash,
the Company may deduct and withhold from the amount of cash otherwise
deliverable to such Holder the amount required to be deducted and withheld
under applicable law (and not otherwise delivered by the Holder in cash).

Holders may surrender their Debentures for conversion for cash, Common
Shares, if any, or a combination of cash and Common Shares, at the option of
the Company, at the applicable Conversion Rate prior to Stated Maturity at any
time on or after April 1, 2026 and also under any of the following
circumstances:

(1)                                  Conversion
Upon Satisfaction of Market Price Condition.  A Holder may surrender any of such Holder’s
Debentures for conversion during any Measurement Period (and only during such
period) prior to the second Business Day immediately prior to Stated Maturity
of the Debentures, if the closing sale prices of Common Shares on the principal
national securities exchange on which the Common Shares are listed, for a
period of at least 20 Trading Days in the period of 30 consecutive
Trading Days ending on the first day of such Measurement Period, is more than
125% of the Conversion Price per share of Common Shares on the first day of
such Measurement Period, or

If an event set forth herein as giving rise to an adjustment of the
Conversion Rate shall have occurred during the period of 30 consecutive
Trading Days beginning on the first day of such Measurement Period, the sale
price of Common Shares on each Trading Day of such period elapsing prior to the
occurrence of the event shall be deemed for purposes of the calculation
described in the previous sentence to have been appropriately adjusted to
reflect the occurrence of the event.

The Conversion
Agent, which  shall initially be the
Trustee shall, on behalf of the Company, determine daily if the Debentures are
convertible as a result of the closing sale price of Common Shares and notify
the Company and the Trustee accordingly.

(2)                                  Conversion
Upon Satisfaction of Trading Price Condition.  A Holder may surrender any of its Debentures
for conversion during the five consecutive Trading Day period following any
20 consecutive Trading Days in which the average of the trading prices (as
determined following a request by a holder of the Debentures) for a Debenture
during such 20 consecutive Trading Day period was less

 16
 

                                                than
98% of the average closing sale price of Common Shares for such period,
multiplied by the applicable Conversion Rate for such period.  Common Shares will be valued at 100% of the
average closing sale prices for the 20 consecutive Trading Days preceding
the Conversion Date.

The “trading price” of the Debentures on any date of
determination means the average of the secondary market bid quotations per
$1,000 principal amount of Debentures obtained by the Trustee for a $5,000,000
principal amount of the Debentures at approximately 3:30 p.m., New York
City time, on such determination date from two independent nationally
recognized securities dealers selected by the Company, which may include the
Underwriters; provided that if at
least two such bids cannot reasonably be obtained by the Trustee, but one such
bid can reasonably be obtained by the Trustee, this one bid shall be used.  If the Trustee cannot reasonably obtain at
least one bid for a $5,000,000 principal amount of the Debentures from a
nationally recognized securities dealer or, in the reasonable judgment of the
Company, the bid quotations are not indicative of the secondary market value of
the Debentures, then the trading price per $1,000 principal amount of
Debentures will be deemed to be less than 98% of the closing sale price of Common
Shares on such determination date.

The Trustee shall have no
obligation to determine the trading price of the Debentures unless the Company
shall have requested such determination, and the Company shall have no
obligation to make such request unless a Holder provides the Company with
reasonable evidence that the trading price per $1,000 principal amount of the
Debentures would be less than 98% of the product of the closing sale price of
Common Shares and the Conversion Rate, or that no such prices can be reasonably
determined; at which time, the Company shall instruct the Trustee to determine
the trading price of the Debentures beginning on the next Trading Day and on
each successive Trading Day until the trading price is greater than or equal to
98% of the product of the closing sale price of Common Shares and the
Conversion Rate.

(3)                                  Conversion
Upon Notice of Redemption.  A
Holder may surrender for conversion any of the Debentures called for redemption
at any time prior to the close of business two Business Days prior to the
Redemption Date, even if the Debentures are not otherwise convertible at such
time.  However, if a Holder has already
delivered a Repurchase Notice or a Change in Control Purchase notice with
respect to a Debenture, the Holder may not surrender that Debenture for
conversion until, in the case of a Repurchase

 17
 

                                                Notice,
the Holder has withdrawn the notice in accordance with the terms of the
Debentures.

(4)                                  Conversion
Upon Specified Transactions. 
If the Company elects to:

(A)                              distribute
to all holders of Common Shares rights entitling them to purchase, for a period
expiring within 60 days, Common Shares at less than the closing sale price
of Common Shares on the Trading Day immediately preceding the declaration of
the distribution; or

(B)                                distribute
to all holders of Common Shares the Company’s assets, debt securities or rights
to purchase the Company’s securities, which distribution has a per share value
exceeding 15% of the closing sale price of Common Shares on the Trading Day
immediately preceding the declaration date for such distribution,

the Company shall notify the Holders of the Debentures in writing at
least 20 days prior to the ex-dividend date for such distribution.  Following the issuance of such notice,
Holders may surrender their Debentures for conversion at any time until the
earlier of the close of business on the Business Day prior to the ex-dividend
date or the Company’s announcement that such distribution will not take place; provided, however, that
a Holder may not exercise this right to convert if the Holder may participate,
on an as-converted basis, in the distribution without conversion of the
Debentures.  The ex-dividend date for
purposes of the foregoing is the first date upon which a sale of the Common
Shares does not automatically transfer the right to receive the relevant
distribution from the seller of Common Shares to its buyer.

In addition, if the Company is party to any transaction described in
clause (1) of the definition of “Change in Control” or any other consolidation,
merger or binding share exchange pursuant to which Common Shares would be
converted into cash, securities or other property, a Holder may surrender
Debentures for conversion at any time from and after the date that is
15 Business Days prior to the anticipated effective date of the
transaction until five Business Days after the actual date of such transaction.

If the Company is party to any transaction described in clause (1) of
the definition of “Change in Control” or any other consolidation, merger or
binding share exchange pursuant to which Common Shares are converted into cash,
securities or other property, then at the effective time of the

 18
 

transaction, the right to convert a Debenture into Common Shares will
be changed into a right to convert the Debentures into the kind and amount of
cash, securities or other property that the Holder would have received if the
Holder had converted its Debentures immediately prior to the effective time of
the transaction (assuming such Holder did not exercise his rights of election,
if any, as to the kind or amount of securities, cash or other property
receivable upon such reclassification, change, consolidation, merger,
combination, sale or conveyance).  If a
Holder converts Debentures in accordance with this paragraph and the Holder is
entitled to an adjustment for additional Common Shares as described in
paragraph (m) herein, the conversion of the Debentures will settle after
the effective time of such transaction. 
In addition, if Holders convert their Debentures at any time following
the effective time of the transaction, the amount paid will be paid based on
the kind and amount of such cash, securities or other property.

If such transaction also constitutes a Change in Control, the holder
will be able to require the Company to repurchase all or a portion of such
Holder’s Debentures as described in paragraph (l).  In addition, if such transaction constitutes
a Change in Control as described in clause (l) and (2) of the definition
thereof, the Company will adjust the Conversion Rate for Debentures tendered
for conversion in connection with the transaction, as described in
paragraph (m) hereof.

(5)                                  Conversion
Upon  Delisting of Common Shares.  A Holder of Debentures may surrender any of
its Debentures for conversion into Common Shares at the applicable Conversion
Rate if the Common Shares are not listed on a U.S. national securities exchange
for a 30 consecutive Trading Day period.

“Measurement Period”
means the period from and including the 11th Trading Day in a fiscal
quarter up to but excluding the 11th Trading Day of the following fiscal
quarter.

“Closing sale price”
of the Common Shares or other capital stock or similar equity interests or
other publicly traded security on any date means the closing sale price per
share (or, if no closing sale price is reported, the average of the closing bid
and ask prices or, if more than one in either case, the average of the average
closing bid and the average closing ask prices) on such date as reported on the
principal United States securities exchange on which the Common Shares or such
other capital stock or similar equity interests or other securities are traded
or, if the Common Shares or such other capital stock or similar equity
interests or other securities are not listed on a United States national or
regional securities exchange, or by the National Quotation Bureau Incorporated
or another established over-the-counter trading market in the United
States.  The

 19
 

closing sale price will
be determined without regard to after-hours trading or extended market
making.  In the absence of such
quotations, the Company will determine the closing sale price on such basis as
it considers appropriate.

“Trading Day”
means a day during which trading in securities generally occurs on the New York
Stock Exchange or, if the subject securities are not then listed on the New
York Stock Exchange, on the principal other national or regional securities
exchange on which such securities are then listed or, if such securities are
not then listed on a national or regional securities exchange, on the principal
other market on which securities are then traded.

(p)                                 Conversion Price.  The Conversion Price per Common Share means,
for a $1,000 principal amount of Debentures, the quotient of $1,000 divided by
the Conversion Rate.  The Conversion
Price on March 27, 2007 shall be $162.46 per Common Share.  The Conversion Rate for each $1,000 principal
amount of Debentures on March 27, 2007 shall be 6.1553.

(q)                                 Conversion Procedures.  A Holder will not receive any cash payment
representing accrued interest upon conversion of a Debenture.  Instead, upon conversion the Company will
deliver to tendering Holders, cash, a fixed number of Common Shares, if any,
and any cash payment to account for fractional shares.  The cash payment for fractional shares in
connection with a conversion settled in Common Shares will be based on the
closing sale price of Common Shares on the Trading Day immediately prior to the
Conversion Date.  Delivery of cash and
Common Shares, if any, will be deemed to satisfy the Company’s obligation to
pay the principal amount of the Debentures, including any accrued and unpaid
interest.  Accrued and unpaid interest
will be deemed paid in full rather than canceled, extinguished or forfeited.  In no event will the Company adjust the
Conversion Rate to account for the accrued interest.

Upon conversion of a Debenture, the Company will pay any documentary
stamp or similar issue or transfer tax due on the issue of Common Shares, if
any, unless the tax is due because the Holder requests the shares to be issued
or delivered to a person other than the registered Holder, in which case the
Holder must pay the tax prior to the delivery of the Common Shares.  Certificates representing Common Shares will not
be issued or delivered unless all taxes and duties, if any, payable by the
Holder have been paid.

Debentures tendered for
conversion after a Record Date for an interest payment but prior to the
corresponding Interest Payment Date, will receive on the Interest Payment Date
interest accrued on those Debentures, notwithstanding the conversion of
Debentures prior to the Interest Payment Date, assuming the Holder was the
holder of record on the

 20
 

corresponding Record
Date.  Notwithstanding the foregoing, a
Holder that surrenders for conversion a Debenture during such period, must pay
to the Company an amount equal to the interest that has accrued and that will
be paid on the Debentures being converted on the Interest Payment Date, unless
such Debentures are surrendered for conversion after being called for
redemption after a Record Date for an Interest Payment Date or such Debentures
are converted after the Record Date for the payment of interest on the
Debentures immediately preceding the Stated Maturity of the Debentures.  If in such an event prior to the Redemption
Date a Holder elects to convert Debentures, such Holder will not be required to
pay at the time of surrender of Debentures for conversion the amount of interest
on the Debentures that it will receive on the date that has been fixed for
redemption.

Except as set forth
herein, no other payment or adjustment for interest, or for any dividends in
respect of Common Shares, will be made upon conversion of Debentures.  Holders of Common Shares issued upon conversion
will not be entitled to receive any dividends payable to holders of Common
Shares as of any record time or date before the close of business on the
conversion date.

In order to exercise its
conversion right, a Holder must deliver an irrevocable conversion notice,
together, if the Debentures are in certificated form, with the certificated
security, to the Conversion Agent who will, on behalf of the Holder, convert
the Debentures for Common Shares, cash or a combination of cash and Common
Shares.

In case any Debenture
shall be surrendered for partial exchange, the Company shall execute and the
Trustee shall authenticate and deliver to or upon the written order of the
holder of the Debenture so surrendered, without charge to such Holder, a new
Debenture or Debentures in authorized denominations in an aggregate principal
amount equal to the unconverted portion of the surrendered Debentures.

(r)                                    Conversion Rate Adjustments.  The Conversion Rate shall be
adjusted from time to time as follows:

(1)                                  If the Company issues
Common Shares as a dividend or distribution on Common Shares to all holders of
Common Shares, or if the Company effects a share split or share combination,
the conversion rate will be adjusted based on the following formula:

CR1 = CR0 x OS1/OS0

where

CR0 = the
Conversion Rate in effect immediately prior to such event

 21
 

CR1 = the
Conversion Rate in effect immediately after such event

OS0 = the number
of Common Shares outstanding immediately prior to such event

OS1 = the number
of Common Shares outstanding immediately after such event.

Any adjustment
made pursuant to this paragraph (1) shall become effective on the date that is
immediately after the earlier of (x) the date fixed for the determination
of shareholders entitled to receive such dividend or other distribution or
(y) the date on which such split or combination becomes effective, as
applicable.  If any dividend or
distribution described in this paragraph is declared but not so paid or made,
the Conversion Rate shall again be adjusted to the Conversion Rate that would
then be in effect if such dividend or distribution had not been declared.

(2)                                  If the Company issues
to all holders of Common Shares any rights, warrants, options or other
securities entitling them for a period of not more than 45 days after the
date of issuance thereof to subscribe for or purchase Common Shares, or
securities convertible into shares of Common Shares within 45 days after
the issuance thereof, in either case at an exercise price per share or a conversion
price per share less than the closing sale price of Common Shares on the
Business Day immediately preceding the time of announcement of such issuance,
the Conversion Rate will be adjusted based on the following formula (provided
that the Conversion Rate will be readjusted to the extent that such rights,
warrants, options, or other securities or convertible securities are not
exercised or converted prior to the expiration of the exercisability or
convertibility thereof):

CR1 = CR0 x
(OS0+X)/(OS0+Y)

where

CR0 = the Conversion
Rate in effect immediately prior to such event

CR1 = the
Conversion Rate in effect immediately after such event

OS0 = the number
of Common Shares outstanding immediately prior to such event

X = the total
number of Common Shares issuable pursuant to such rights, warrants, options,
other securities or convertible securities

 22

 

Y = the number of Common
Shares equal to the quotient of (A) the aggregate price payable to
exercise such rights, warrants, options, other securities or convertible
securities and (B) the average of the closing sale prices of Common Shares
for the 10 consecutive trading days prior to the Business Day immediately
preceding the date of announcement for the issuance of such rights, warrants,
options, other securities or convertible securities.

For purposes of this
paragraph (2), in determining whether any rights, warrants, options, other
securities or convertible securities entitle the holder to subscribe for or
purchase or exercise a conversion right for Common Shares at less than the
average closing sale price of Common Shares, and in determining the aggregate
exercise or conversion price payable for such Common Shares, there shall be
taken into account any consideration received by the Company for such rights,
warrants, options, other securities or convertible securities and any amount
payable on exercise or conversion thereof, with the value of such
consideration, if other than cash, to be determined by the Company’s Board of
Trustees.

(3)                                  If
the Company distributes shares of capital stock, evidences of indebtedness or
other assets or property of the Company to all holders of Common Shares,
excluding:

(A)                              dividends,
distributions and rights, warrants, options, other securities or convertible
securities referred to in paragraph (1) or (2) above,

(B)                                dividends
or distributions paid exclusively in cash, and

(C)                                spin-offs
described below in this paragraph (3)

then the Conversion Rate
will be adjusted based on the following formula:

CR1 = CR0 x SP0/(SP0-FMV)

where

CR0 = the Conversion Rate
in effect immediately prior to such distribution

CR1 = the Conversion Rate
in effect immediately after such distribution

 23
 

SP0 = the average of the
closing sale prices of Common Shares for the 10 consecutive trading days
prior to the Business Day immediately preceding the earlier of the record date
or the ex-dividend date for such distribution

FMV = the fair market
value (as determined in good faith by the Company’s Board of Trustees) of the
shares of capital stock, evidences of indebtedness, assets or property
distributed with respect to each outstanding Company Common Share on the
earlier of the Record Date or the ex-dividend date for such distribution.

An adjustment made
pursuant to this paragraph (3) shall be made successively whenever any such
distribution is made and shall become effective on the day immediately after
the date fixed for the determination of holders of Common Shares entitled to
receive such distribution.

With respect to an
adjustment pursuant to this paragraph (3) where there has been a payment of a
dividend or other distribution on Common Shares or shares of capital stock of
any class or series, or similar equity interest, of or relating to a subsidiary
or other business unit of the Company (such transaction, a “Spin-Off”),
the Conversion Rate in effect immediately before the close of business on the
Record Date fixed for determination of holders of Common Shares entitled to
receive the distribution will be increased based on the following formula:

CR1 = CR0 x
(FMV0+MP0)/MP0

where

CR0 = the Conversion Rate
in effect immediately prior to such distribution

CR1 = the Conversion Rate
in effect immediately after such distribution

FMV0 = the average of the
closing sale prices of the capital stock or similar equity interest distributed
to holders of Common Shares applicable to one Company Common Share over the
first 10 consecutive trading days after the effective date of the Spin-Off

MP0 = the average of the
closing sale prices of Common Shares over the first 10 consecutive Trading
Days after the effective date of the Spin-Off.

 24
 

The adjustment to the
Conversion Rate under the preceding paragraph with respect to a Spin-Off will
occur on the 10th Trading Day from, and including, the effective date of
the Spin-Off.

If any such dividend or
distribution described in this paragraph is declared but not paid or made, the
Conversion Rate shall again be adjusted to be the Conversion Rate that would
then be in effect if such dividend or distribution had not been declared.

(4)                                  If
following the date of original issuance of the Debentures the Company makes any
cash dividend or distribution during any of its quarterly fiscal periods to all
holders of Common Shares in an aggregate amount that, together with other cash
dividends or distributions made during such quarterly fiscal period, exceeds
the product of $0.85 (the “Reference Dividend”), multiplied by the
number of Common Shares outstanding on the record date for such distribution,
the Conversion Rate will be adjusted based on the following formula:

CR1 = CR0 x SP0 /(SP0-C)

where

CR0 = the Conversion Rate
in effect immediately prior to the record date for such distribution

CR1 = the Conversion Rate
in effect immediately after the record date for such distribution

SP0 = the average of the
closing sale prices of Common Shares for the 10 consecutive Trading Days
prior to the business day immediately preceding the earlier of the record date
or the day prior to ex-dividend date for such distribution

C = the amount in cash
per share that the Company distributes to holders of Common Shares during such
quarterly fiscal period that exceeds the Reference Dividend.

An adjustment made
pursuant to this paragraph shall become effective on the date immediately after
the Record Date for the determination of holders of Common Shares entitled to
receive such dividend or distribution. 
If any dividend or distribution described in this paragraph is declared
but not so paid or made, the Conversion Rate shall again be adjusted to the
Conversion Rate that would then be in effect if such dividend or distribution
had not been declared.

 25
 

The Reference Dividend
shall be subject to adjustment on account of any of the events set forth in
paragraph (1) above of this paragraph (r). 
Any such adjustment will be effected by multiplying the Reference
Dividend by a fraction, the numerator of which will equal OS0 and the denominator
of which will equal OS1, in each case, within the meaning of paragraph (1)
above.

(5)                                  If
the Company or any of its subsidiaries makes a payment in respect of a tender
offer or exchange offer for Common Shares to the extent that the cash and value
of any other consideration included in the payment per Company Common Share
exceeds the closing sale price of a Company Common Share on the Trading Day
next succeeding the last date on which tenders or exchanges may be made
pursuant to such tender or exchange offer (the “Expiration Time”), the
Conversion Rate will be increased based on the following formula:

CR1 = CR0 x (AC + (SP1 x
OS1))/(SP1 x OS0)

where

CR0 = the Conversion Rate
in effect on the date such tender or exchange offer expires

CR1 = the Conversion Rate
in effect on the day next succeeding the date such tender or exchange offer
expires

AC = the aggregate value
of all cash and any other consideration (as determined by the Company’s Board
of Trustees) paid or payable for shares purchased in such tender or exchange
offer

OS0 = the number of
Common Shares outstanding immediately prior to the date such tender or exchange
offer expires

OS1 = the number of
Common Shares outstanding immediately after such tender or exchange offer
expires (after giving effect to the purchase or exchange of shares pursuant to
such tender or exchange offer)

SP1 = the average of the
closing sale prices of Common Shares for the 10 consecutive Trading Days
commencing on the Trading Day next succeeding the date such tender or exchange
offer expires.

If the application of the
foregoing formula would result in a decrease in the Conversion Rate, no
adjustment to the Conversion Rate will be made.

 26
 

Any adjustment made
pursuant to this paragraph (5) shall become effective on the date immediately
following the Expiration Time.  If the
Company or one of its subsidiaries is obligated to purchase Common Shares
pursuant to any such tender or exchange offer, but the Company or such
subsidiary is permanently prevented by applicable law from effecting any such
purchases or all such purchases are rescinded, the Conversion Rate shall again
be adjusted to be the Conversion Rate that would be in effect if such tender or
exchange offer had not been made.

(6)                                  Notwithstanding
the foregoing, in the event of an adjustment pursuant to paragraph (4) or
(5) above, in no event will the conversion rate exceed 8.0019, subject to
adjustment pursuant to paragraphs (1), (2) and (3).

(7)                                  If
the Company adopts a rights plan while any Debentures remain outstanding, Holders
of Debentures will receive, upon conversion of their Debentures for Common
Shares, in addition to Common Shares, rights under the Company’s shareholder
rights agreement unless, prior to conversion, the rights have expired,
terminated or been redeemed or unless the rights have separated from the Common
Shares.  If the rights provided for in
the rights plan adopted by the Company have separated from the Common Shares in
accordance with the provisions of the applicable shareholder rights agreement
so that Holders of Debentures would not be entitled to receive any rights in
respect of Common Shares issuable upon conversion of Debentures, the Conversion
Rate will be adjusted at the time of separation as if the Company had
distributed, to all holders of Common Shares, shares of capital stock,
evidences of indebtedness or other assets or property pursuant to
paragraph (3) above, subject to readjustment upon the subsequent
expiration, termination or redemption of the rights.  In lieu of any such adjustment, the Company
may amend such applicable shareholder rights agreement to provide that upon
conversion of Debentures the Holders will receive, in addition to Common Shares
issuable upon such conversion, the rights which would have attached to such
Common Shares if the rights had not become separated from the Common Shares
under such applicable shareholder rights agreement.  To the extent that the Company adopts any
future shareholder rights agreement, upon conversion of Debentures into Common
Shares, a Holder of Debentures shall receive, in addition to Common Shares, the
rights under the future shareholder rights agreement whether or not the rights
have separated from Common Shares at the time of conversion and no adjustment
will be made in accordance with paragraph (3) or otherwise.

 27
 

In addition to the adjustments pursuant to
paragraphs (1) through (7) above, the Company may increase the Conversion
Rate in order to avoid or diminish any income tax to holders of the Company
capital stock resulting from any dividend or distribution of capital stock (or
rights to acquire Common Shares) or from any event treated as such for income
tax purposes.  The Company may also, from
time to time, to the extent permitted by applicable law, increase the
Conversion Rate by any amount for any period if the Company has determined that
such increase would be in the best interests of the Company.  If the Company makes such determination, it
will be conclusive.  If the Company makes
such a determination it will mail to Holders of record of the Debentures a
notice of the increase at least fifteen (15) days prior to the date the
increased Conversion Rate takes effect in accordance with applicable law and
such notice shall state the increased Conversion Rate and the period during
which it will be in effect.

The Company will not make any adjustment the
Conversion Rate if Holders are permitted to participate, on an as-converted
basis, in the transactions described above.

The applicable Conversion
Price will not be adjusted upon certain events, including but not limited to:

(A)                              the
issuance of any Common Shares pursuant to any present or future plan providing
for the reinvestment of dividends or interest payable on securities of the
Company and the investment of additional optional amounts in shares of Common
Shares under any plan;

(B)                                the
issuance of any Common Shares or options or rights to purchase those shares
pursuant to any present or future employee, trustee or consultant benefit plan,
employee agreement or arrangement or program of the Company;

(C)                                the
issuance of any Common Shares pursuant to any option, warrant, right, or
exercisable, exchangeable or convertible security outstanding as of the date
the Debentures were first issued;

(D)                               a
change in the par value of Common Shares;

(E)                                 accumulated
and unpaid dividends or distributions;

(F)                                 as
a result of a tender offer solely to holders of less than 100 Common
Shares; and

 28
 

(G)                                for
the avoidance doubt, the issuance of limited partnership units by the Operating
Partnership and the issuance of Common Shares or cash upon redemption thereof.

No adjustment in the applicable Conversion Price will
be required unless the adjustment would require an increase or decrease of at
least 1% of the applicable Conversion Price. 
If the adjustment is not made because the adjustment does not change the
applicable Conversion Price by more than 1%, then the adjustment that is not
made will be carried forward and taken into account in any future
adjustment.  All required calculations
will be made to the nearest cent or 1/1000th of
a share, as the case may be. 
Notwithstanding the foregoing, if the Debentures are called for
redemption, all adjustments not previously made will be made on the applicable
Redemption Date.  Except as specifically
described above, the applicable Conversion Price will not be subject to
adjustment in the case of the issuance of any Common Shares or Company
preferred shares, or securities exchangeable for or convertible into Common
Shares or Company preferred shares.

Whenever the Conversion Rate is adjusted as herein
provided, the Company shall as promptly as reasonably practicable file with the
Trustee and any Conversion Agent other than the Trustee an Officers’
Certificate setting forth the Conversion Rate after such adjustment and setting
forth a brief statement of the facts requiring such adjustment.  Promptly after delivery of such certificate,
the Company shall prepare a notice of such adjustment of the Conversion Rate
setting forth the adjusted Conversion Rate and the date on which each adjustment
becomes effective and shall mail such notice of such adjustment of the
Conversion Rate to the Holders of the Debentures within 20 Business Days of the
effective date of such adjustment. 
Failure to deliver such notice shall not affect the legality or validity
of any such adjustment.

(s)                                  Ownership Limit. 
Notwithstanding any other provision of the Debentures or the
instructions contained herein, no Holder of Debentures shall be entitled to
convert such Debentures for Common Shares to the extent that receipt of such
shares would cause such Holder (together with such Holder’s affiliates) to
exceed the ownership limit contained in the Company’s Declaration of Trust as
in effect from time to time.

(t)                                    Indenture Modifications for Purposes of the
Debentures.

(1)                                  Section 401 of
the Indenture is modified in respect of the Debentures to provide that the
Company may not discharge a Holder’s rights to convert Debentures in accordance
with the terms of the Debentures or to have registered the transfer or exchange
of Debentures in accordance with the terms of the Indenture.

 29
 

(2)                                  Section 501 of
the Indenture is modified for purposes of the Debentures to add the following
Events of Default:

(a)                                  The
Company fails to deliver the amounts due upon a conversion of Debentures, and
that failure continues for 10 days; and

(b)                                 The
Company fails to provide notice of the occurrence of a Change in Control when
required under the Indenture;

(3)                                  Section 902 of
the Indenture is modified for purposes of the Debentures to add the following as
requiring the consent of each Holder of a Debenture for modification or waiver:

(A)                              modify
the provisions with respect to the Holders’ rights upon a Change in Control in
a manner adverse to the Holders of the Debentures, including the Company’s
obligations to repurchase the Debentures following a Change in Control; or

(B)                                adversely
affect the Holders’ rights contained in the exchange or repurchase provisions
of the Debentures.

(4)                                  Section 901 of
the Indenture is modified for purposes of the Debentures to add that the
Company may increase the Conversion Rate or reduce the Conversion Price; provided that the increase or reduction, as the case may be,
is in accordance with the terms set forth herein or will not adversely affect
the interests of the Holders of the Debentures.

(u)                                 The
calculation of the Repurchase Price, Change in Control Purchase Price,
Conversion Rate, Conversion Price and each other calculation to be made in
respect of the Debentures shall be the obligation of the Company or its agent.  All calculations made by the Company or its
agent as contemplated pursuant to the terms hereof and of the Debentures shall
be final and binding on the Company and the Holders absent manifest error.  The Trustee, Paying Agent and Conversion
Agent shall not be obligated to recalculate, recompute or confirm any such
calculations except in its capacity as Trustee or agent or of the Company.

(v)                                 The
Trustee may make reasonable rules for action by or a meeting of Holders of
Debentures.  The Conversion Agent and the
Paying Agent may make reasonable rules for their functions.

 30
 

(w)                               The
Company shall not be obligated to redeem or purchase any Debenture pursuant to
any sinking fund or analogous provision, or at the option of any Holder thereof
except as provided herein.

(x)                                   The
Debentures shall be issued in denominations of $1,000 and integral multiples
thereof and payments of principal, interest and additional amounts, if any, on
the Debentures shall be made in U.S. dollars.

(y)                                 The
Bank of New York is hereby appointed as a Paying Agent and the Security
Registrar for the Debentures.  The
Security Register for the Debentures will be maintained by the Security
Registrar in the Borough of Manhattan, The City of New York.

(z)                                   The
rights, privileges, protections, immunities and benefits given to the Trustee
pursuant to the Indenture, including, without limitation, its right to be
indemnified, are extended to, and shall be enforceable by, the Trustee in each
of its capacities with respect to the Debentures and the Guarantee.

(aa)                            The
recitals contained herein and in the Debentures, except the Trustee’s
certificates of authentication, shall be taken as the statements of the Company
and the Operating Partnership, as the case may be, and the Trustee assumes no
responsibility for their correctness. 
The Trustee makes no representations as to the validity or sufficiency
of these resolutions or of the Debentures or the Guarantee.  The Trustee shall not be accountable for the
use or application by the Company of Debentures or the proceeds thereof.

(bb)                          The
Trustee shall have no duty to determine when an adjustment of the Conversion
Rate hereunder should be made, how it should be made or what it should be,
except when the Trustee is also acting as an agent of the Company in connection
with the Debentures or the Indenture. The Trustee shall have no duty to
determine whether a supplemental indenture need be entered into or whether any
provisions of any supplemental indenture are correct.  The Trustee shall not be accountable for and
makes no representation as to the validity or value of any securities or assets
issued upon conversion of the Debentures. 
The Trustee shall not be responsible for the Company’s failure to comply
with these resolutions or the terms of the Debentures.  The Conversion Agent shall have the same
protection under these resolutions and the Indenture as the Trustee.

 31Exhibit
10.1

OFFICE
LEASE

Executed 02/06/07

by and
between

ALLEGANY
RESEARCH PROPERTIES, LLC, as Landlord

and

INFOSPHERIX
INCORPORATED, as Tenant

 

 

TABLE OF CONTENTS

 

	
  Section 1:

  	
   

  	
  Basic Definitions and Provisions

  
	
   

  	
   

  	
  1.1

  	
   

  	
  Definitions

  
	
   

  	
   

  	
  1.2

  	
   

  	
  Special Provisions

  
	
  Section 2.

  	
   

  	
  Premises

  
	
   

  	
   

  	
  2.1

  	
   

  	
  Premises

  
	
   

  	
   

  	
  2.2

  	
   

  	
  Square Foot Determination

  
	
   

  	
   

  	
  2.3

  	
   

  	
  Common Areas

  
	
  Section 3:

  	
   

  	
  Term

  	
   

  	
   

  
	
   

  	
   

  	
  3.1

  	
   

  	
  Commencement and Expiration Dates

  
	
   

  	
   

  	
  3.2

  	
   

  	
  Adjustments to Commencement Date

  
	
   

  	
   

  	
  3.3

  	
   

  	
  Delivery of Possession

  
	
   

  	
   

  	
  3.4

  	
   

  	
  Adjustment of Expiration Date

  
	
   

  	
   

  	
  3.5

  	
   

  	
  Right to Occupy

  
	
   

  	
   

  	
  3.6

  	
   

  	
  Commencement Letter

  
	
  Section 4:

  	
   

  	
  Use

  	
   

  	
   

  
	
   

  	
   

  	
  4.1

  	
   

  	
  Permitted Use

  
	
   

  	
   

  	
  4.2

  	
   

  	
  Prohibited Uses

  
	
   

  	
   

  	
  4.3

  	
   

  	
  Prohibited Equipment in Premises

  
	
  Section 5:

  	
   

  	
  Rent

  	
   

  	
   

  
	
   

  	
   

  	
  5.1

  	
   

  	
  Payment Obligations

  
	
   

  	
   

  	
  5.2

  	
   

  	
  Base Rent

  
	
   

  	
   

  	
  5.3

  	
   

  	
  Additional Rent

  
	
   

  	
   

  	
  5.4

  	
   

  	
  Operating Expenses

  
	
  Section 6:

  	
   

  	
  Security Deposit

  
	
   

  	
   

  	
  6.1

  	
   

  	
  Amount of Deposit

  
	
   

  	
   

  	
  6.2

  	
   

  	
  Application of Deposit

  
	
   

  	
   

  	
  6.3

  	
   

  	
  Refund of Deposit

  
	
  Section 7:

  	
   

  	
  Services by Landlord

  
	
   

  	
   

  	
  7.1

  	
   

  	
  Base Services

  
	
   

  	
   

  	
  7.2

  	
   

  	
  Landlord’s Maintenance

  
	
   

  	
   

  	
  7.3

  	
   

  	
  No Abatement

  
	
   

  	
   

  	
  7.4

  	
   

  	
  Tenant’s Obligation to Report Defects

  
	
  Section 8:

  	
   

  	
  Tenant’s Acceptance and Maintenance of Premises

  
	
   

  	
   

  	
  8.1

  	
   

  	
  Acceptance of Premises

  
	
   

  	
   

  	
  8.2

  	
   

  	
  Move-in Obligations

  
	
   

  	
   

  	
  8.3

  	
   

  	
  Tenant’s Maintenance

  
	
   

  	
   

  	
  8.4

  	
   

  	
  Alterations to Premises

  
	
   

  	
   

  	
  8.5

  	
   

  	
  Restoration of Premises

  
	
   

  	
   

  	
  8.6

  	
   

  	
  Landlord’s Performance of Tenant’s Obligations

  
	
   

  	
   

  	
  8.7

  	
   

  	
  Construction Liens

  

 i
 

 

	
  Section 9:

  	
   

  	
  Property of Tenant

  
	
   

  	
   

  	
  9.1

  	
   

  	
  Property Taxes

  
	
   

  	
   

  	
  9.2

  	
   

  	
  Removal

  
	
  Section 10:

  	
   

  	
  Signs

  	
   

  	
   

  
	
  Section 11:

  	
   

  	
  Access to Premises

  
	
   

  	
   

  	
  11.1

  	
   

  	
  Tenant’s Access

  
	
   

  	
   

  	
  11.2

  	
   

  	
  Landlord’s Access

  
	
   

  	
   

  	
  11.3

  	
   

  	
  Emergency Access

  
	
  Section 12:

  	
   

  	
  Tenant’s Compliance

  
	
   

  	
   

  	
  12.1

  	
   

  	
  Laws

  
	
   

  	
   

  	
  12.2

  	
   

  	
  Rules and Regulations

  
	
  Section 13:

  	
   

  	
  ADA Compliance

  
	
   

  	
   

  	
  13.1

  	
   

  	
  Tenant’s Compliance

  
	
   

  	
   

  	
  13.2

  	
   

  	
  Landlord’s Compliance

  
	
   

  	
   

  	
  13.3

  	
   

  	
  ADA Notices

  
	
  Section 14:

  	
   

  	
  Insurance Requirements

  
	
   

  	
   

  	
  14.1

  	
   

  	
  Tenant’s Liability Insurance

  
	
   

  	
   

  	
  14.2

  	
   

  	
  Tenant’s Property Insurance

  
	
   

  	
   

  	
  14.3

  	
   

  	
  Certificates of Insurance

  
	
   

  	
   

  	
  14.4

  	
   

  	
  Insurance Policy Requirements

  
	
   

  	
   

  	
  14.5

  	
   

  	
  Landlord’s Property Insurance

  
	
   

  	
   

  	
  14.6

  	
   

  	
  Tenants Obligation for Payment of Property
  Insurance

  
	
   

  	
   

  	
  14.7

  	
   

  	
  Mutual Waiver of Subrogation

  
	
  Section 15:

  	
   

  	
  Indemnity

  
	
   

  	
   

  	
  15.1

  	
   

  	
  Tenant Indemnity

  
	
   

  	
   

  	
  15.2

  	
   

  	
  Landlord Indemnity

  
	
   

  	
   

  	
  15.3

  	
   

  	
  Defense Obligation

  
	
   

  	
   

  	
  15.4

  	
   

  	
  Survival

  
	
  Section 16:

  	
   

  	
  Quiet Enjoyment

  
	
  Section 17:

  	
   

  	
  Subordination; Attornment; Non-Disturbance; and
  Estoppel Certificate

  
	
   

  	
   

  	
  17.1

  	
   

  	
  Subordination

  
	
   

  	
   

  	
  17.2

  	
   

  	
  Attornment

  
	
   

  	
   

  	
  17.3

  	
   

  	
  Non-Disturbance

  
	
   

  	
   

  	
  17.4

  	
   

  	
  Estoppel Certificates

  
	
  Section 18:

  	
   

  	
  Assignment — Sublease

  
	
   

  	
   

  	
  18.1

  	
   

  	
  Landlord Consent

  
	
   

  	
   

  	
  18.2

  	
   

  	
  Definition of Assignment

  
	
   

  	
   

  	
  18.3

  	
   

  	
  Permitted Assignments/Subleases

  
	
   

  	
   

  	
  18.4

  	
   

  	
  Prohibited Assignments/Sublease

  

 ii
 

 

	
  

  	
   

  	
  18.5

  	
   

  	
  Limitation on Rights of Assignee/Sublessee

  
	
   

  	
   

  	
  18.6

  	
   

  	
  Tenant Not Released

  
	
   

  	
   

  	
  18.7

  	
   

  	
  Landlord’s Right to Collect Sublease Rents Upon
  Tenant Default

  
	
   

  	
   

  	
  18.8

  	
   

  	
  Excess Rents

  
	
   

  	
   

  	
  18.9

  	
   

  	
  Landlord’s Fees

  
	
   

  	
   

  	
  18.10

  	
   

  	
  Unauthorized Assignment or Sublease

  
	
   

  	
   

  	
  18.11

  	
   

  	
  Limitation

  
	
  Section 19:

  	
   

  	
  Damages to Premises

  
	
   

  	
   

  	
  19.1

  	
   

  	
  Landlord’s Restoration Obligations

  
	
   

  	
   

  	
  19.2

  	
   

  	
  Termination of Lease by Landlord

  
	
   

  	
   

  	
  19.3

  	
   

  	
  Termination of Lease by Tenant

  
	
   

  	
   

  	
  19.4

  	
   

  	
  Tenant’s Restoration Obligations

  
	
   

  	
   

  	
  19.5

  	
   

  	
  Rent Abatement

  
	
   

  	
   

  	
  19.6

  	
   

  	
  Waiver of Claims

  
	
  Section 20:

  	
   

  	
  Eminent Domain

  
	
   

  	
   

  	
  20.1

  	
   

  	
  Effect on Lease

  
	
   

  	
   

  	
  20.2

  	
   

  	
  Right to Condemnation Award

  
	
  Section 21:

  	
   

  	
  Environmental Compliance

  
	
   

  	
   

  	
  21.1

  	
   

  	
  Environmental Laws

  
	
   

  	
   

  	
  21.2

  	
   

  	
  Tenant’s Responsibility

  
	
   

  	
   

  	
  21.3

  	
   

  	
  Tenant’s Liability

  
	
   

  	
   

  	
  21.4

  	
   

  	
  Limitation on Tenant’s Liability

  
	
   

  	
   

  	
  21.5

  	
   

  	
  Inspections by Landlord

  
	
   

  	
   

  	
  21.6

  	
   

  	
  Property

  
	
   

  	
   

  	
  21.7

  	
   

  	
  Tenant’s Liability after Termination of Lease

  
	
  Section 22:

  	
   

  	
  Default

  	
   

  	
   

  
	
   

  	
   

  	
  22.1

  	
   

  	
  Tenant’s Default

  
	
   

  	
   

  	
  22.2

  	
   

  	
  Landlord’s Remedies

  
	
   

  	
   

  	
  22.3

  	
   

  	
  Landlord’s Expenses

  
	
   

  	
   

  	
  22.4

  	
   

  	
  Remedies Cumulative

  
	
   

  	
   

  	
  22.5

  	
   

  	
  No Accord and Satisfaction

  
	
   

  	
   

  	
  22.6

  	
   

  	
  No Reinstatement

  
	
   

  	
   

  	
  22.7

  	
   

  	
  Summary Ejectment

  
	
   

  	
   

  	
  22.8

  	
   

  	
  Landlord’s Default

  
	
   

  	
   

  	
  22.9

  	
   

  	
  Tenant’s Remedies

  
	
  Section 23:

  	
   

  	
  Multiple Defaults

  
	
   

  	
   

  	
  23.1

  	
   

  	
  Increased Security Deposit

  
	
   

  	
   

  	
  23.2

  	
   

  	
  Effect on Notice Rights and Cure Periods

  
	
  Section 24:

  	
   

  	
  Bankruptcy

  
	
   

  	
   

  	
  24.1

  	
   

  	
  Trustee’s Rights

  
	
   

  	
   

  	
  24.2

  	
   

  	
  Adequate Assurance

  
	
   

  	
   

  	
  24.3

  	
   

  	
  Assumption of Lease Obligations

  

 iii
 

 

	
  Section 25:

  	
   

  	
  Notices

  	
   

  	
   

  
	
   

  	
   

  	
  25.1

  	
   

  	
  Addresses

  
	
   

  	
   

  	
  25.2

  	
   

  	
  Form; Delivery; Receipt

  
	
   

  	
   

  	
  25.3

  	
   

  	
  Address Changes

  
	
   

  	
   

  	
  25.4

  	
   

  	
  Notice by Legal Counsel

  
	
  Section 26:

  	
   

  	
  Holding Over

  
	
  Section 27:

  	
   

  	
  Right to Relocate

  
	
  Section 28:

  	
   

  	
  Broker’s Commissions

  
	
   

  	
   

  	
  28.1

  	
   

  	
  Broker

  
	
   

  	
   

  	
  28.2

  	
   

  	
  Landlord’s Obligation

  
	
   

  	
   

  	
  28.3

  	
   

  	
  Indemnity

  
	
  Section 29:

  	
   

  	
  Miscellaneous

  
	
   

  	
   

  	
  29.1

  	
   

  	
  No Agency

  
	
   

  	
   

  	
  29.2

  	
   

  	
  Force Majeure

  
	
   

  	
   

  	
  29.3

  	
   

  	
  Limitation on Damages

  
	
   

  	
   

  	
  29.4

  	
   

  	
  Satisfaction of Judgments Against Landlord

  
	
   

  	
   

  	
  29.5

  	
   

  	
  Interest

  
	
   

  	
   

  	
  29.6

  	
   

  	
  Legal Costs

  
	
   

  	
   

  	
  29.7

  	
   

  	
  Sale of Premises or Building

  
	
   

  	
   

  	
  29.8

  	
   

  	
  Time of the Essence

  
	
   

  	
   

  	
  29.9

  	
   

  	
  Transfer of Security Deposit

  
	
   

  	
   

  	
  29.10

  	
   

  	
  Tender of Premises

  
	
   

  	
   

  	
  29.11

  	
   

  	
  Tenant’s Financial Statements

  
	
   

  	
   

  	
  29.12

  	
   

  	
  Recordation

  
	
   

  	
   

  	
  29.13

  	
   

  	
  Partial Invalidity

  
	
   

  	
   

  	
  29.14

  	
   

  	
  Binding Effect

  
	
   

  	
   

  	
  29.15

  	
   

  	
  Entire Agreement

  
	
   

  	
   

  	
  29.16

  	
   

  	
  Good Standing

  
	
   

  	
   

  	
  29.17

  	
   

  	
  Terminology

  
	
   

  	
   

  	
  29.18

  	
   

  	
  Headings

  
	
   

  	
   

  	
  29.19

  	
   

  	
  Choice of Law

  
	
   

  	
   

  	
  29.20

  	
   

  	
  Execution

  
	
  Section 30:

  	
   

  	
  Addenda and Exhibits

  
	
   

  	
   

  	
  Lease Addendum #1 — “Workletter”

  
	
   

  	
   

  	
  Exhibit A — Building and Premises

  
	
   

  	
   

  	
  Exhibit B — Rules and Regulations

  
	
   

  	
   

  	
  Exhibit C — Janitorial Specifications

  
	
   

  	
   

  	
  Exhibit D —Monthly Rents and Expiration Dates

  
	
   

  	
   

  	
  Exhibit E—Annual Anticipated Property Tax and
  Insurance Table

  
	
   

  	
   

  	
  Exhibit F — Common Area

  
	
   

  	
   

  	
  Exhibit G — Business Support Area

  
	
   

  	
   

  	
  Exhibit H — Building Standard Improvements

  
	
   

  	
   

  	
  Exhibit I — Restrictive Covenants

  

 

 iv

 

STATE OF MARYLAND

COUNTY OF ALLEGANY

OFFICE LEASE

THIS LEASE (“Lease”), effective
as of this    6       day of    February   ,
2007, (“Effective Date”) by and between ALLEGANY
RESEARCH PROPERTIES, LLC, a
Maryland limited liability company (“Landlord”), and INFOSPHERIX INCORPORATED, a Delaware corporation (“Tenant”),
provides as follows:

1.             DEFINITIONS AND SPECIAL
PROVISIONS.  The following
basic definitions and provisions apply to this Lease:

1.1.          Definitions.  The italicized terms shall have
the following meanings.

	
  Base Rent.

  	
   

  	
  The minimum Base Rent for the Term shall be payable
  in monthly installments on the 1st day of each month, in advance, as follows:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  $15.88 per year  per square foot beginning on the Commencement Date and
  continuing at an annual increase of 3% per the chart in Exhibit D.

  
	
   

  	
   

  	
   

  
	
  Base Year.

  	
   

  	
  1 December 2007 through 30 November 2008.

  
	
   

  	
   

  	
   

  
	
  Fiscal Year.

  	
   

  	
  1 December through 30 November. However if the
  Commencement Date occurs on a date other than December 1, 2007, the Fiscal
  Year shall begin on the Commencement Date.

  
	
   

  	
   

  	
   

  
	
  Short Year.

  	
   

  	
  For Purposes of Common Area Operating Expenses, the
  short year shall run from the Commencement Date to 31 December, 2007.

  
	
   

  	
   

  	
   

  
	
  Brokers.

  	
   

  	
  Tenant’s Representative — None. 

  Landlord’s Representative — None.

  
	
   

  	
   

  	
   

  
	
  Building.

  	
   

  	
  Research and Office Building located in Allegany
  Business Park containing approximately 50,000 square feet (to be
  constructed).

  Address:

                  Midlothian
  Road 

                  Frostburg,
  MD 21532

  
	
   

  	
   

  	
   

  
	
  Building Standard Improvements.

  	
   

  	
  “Building Standard Improvements” means the standards
  for normal construction of general office space within the Building as
  specified by Landlord, including design and construction standards,
  electrical load factors, materials, fixtures and finishes.

  
	
   

  	
   

  	
   

  
	
  City.

  	
   

  	
  Frostburg, Maryland

  

 

 1
 

 

	
  Commencement Date.

  	
   

  	
  1 December 2007. The Commencement Date may be
  adjusted in accordance with Section 3.2 of this Lease

  
	
   

  	
   

  	
   

  
	
  Common Area

  	
   

  	
  The common areas generally include space that is not
  included in portions of the Building set aside for leasing to tenants or
  reserved for Landlord’s exclusive use, including entrances, dining area,
  hallways, lobbies, elevator, restrooms. Common Area also includes sidewalks,
  walkways, parking, plazas, and all other parts of this site.

  
	
   

  	
   

  	
   

  
	
  Electrical Service.

  	
   

  	
  Six (6) watts per useable square foot for
  convenience outlets.

  
	
   

  	
   

  	
   

  
	
  Expiration Date.

  	
   

  	
  Expiration Date for Areas 1 and 2 shall be 30
  November, 2017;

  Expiration Date for Area 3 shall be 30 November,
  2014; 

  Expiration Date for Area 4 shall be 30 November,
  2011; per Exhibit D.

  
	
   

  	
   

  	
   

  
	
  Guarantors.

  	
   

  	
  None.

  
	
   

  	
   

  	
   

  
	
  Holidays.

  	
   

  	
  New Year’s Day; 

  Memorial Day; 

  Independence Day; 

  Labor Day; 

  Thanksgiving Day; and 

  Christmas Day. 

   

  
	
   

  	
   

  	
  If one of the Holidays set forth above is observed
  by the national banks in Allegany County, Maryland on a day other than the
  normal day for such observance, then the day of observance by the banks shall
  constitute that Holiday under this Lease.

  
	
   

  	
   

  	
   

  
	
  HVAC After Hours Rate.

  	
   

  	
  N/A

  
	
   

  	
   

  	
   

  
	
  Non-Standard Improvements.

  	
   

  	
  “Non-Standard Improvements” means such items as (i)
  High Demand Equipment (as defined in this Lease), (ii) all wiring and cabling
  from the point of origin to the termination point, (iii) raised floors for
  computer or communications systems, (iv) telephone equipment, security
  systems, and UPS systems, (iv) equipment racks, (v) alterations installed by
  or at the request of Tenant after the Commencement Date, and (vi) any other
  improvements that are not part of the Building Standard Improvements.

  
	
   

  	
   

  	
   

  
	
  Normal Building Operating Hours.

  	
   

  	
  6 a.m. to midnight, Monday through Friday, excluding
  Holidays.

  

 

 2
 

 

	
  Notice Addresses.

  	
   

  	
  Landlord: 

  	
   

  	
  Allegany Research Properties, LLC 

  11521 Milnor Avenue 

  Upper Potomac Industrial Park 

  P. O. Box 1210 

  Cumberland, MD 21501-1210 

   

  Attn: Carl Belt, Managing Member 

   

  Facsimile Number: 301-729-0163 

   

  Academic Privatization of Maryland, LLC 

  3361 Fieldwood Drive 

  Smyrna, GA 30080 

  Attn: Glenn Weaver, Property Manager 

   

  Facsimile Number: 800-859-7444 

   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Tenant:

  	
   

  	
  InfoSpherix Incorporated 

  12051 Indian Creek Court 

  Beltsville, Maryland 20705 

   

  Attn: Mr. Steve Wade 

   

  Facsimile Number:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Parking.

  	
   

  	
  Ten (10) unreserved parking spaces per each 1,000
  rentable square feet in the Premises.

  
	
   

  	
   

  	
   

  
	
  Permitted Use.

  	
   

  	
  General office, research related activities, and
  related uses.

  
	
   

  	
   

  	
   

  
	
  Premises.

  	
   

  	
  Rentable Square Feet: 

  	
  Defined per
  Exhibit A and Exhibit D, for Areas 1-4, and subject 

  to measurement
  as set forth in this Lease.

   

  
	
   

  	
   

  	
  Suite: 1000

  	
   

  	
  Premises and
  Rentable Area are defined Per Exhibit A and Exhibit D.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Property Manager.

  	
   

  	
  Academic Privatization of Maryland, LLC

  3361 Fieldwood Drive 

  Smyrna, GA 30080 

   

  Attn: Glenn Weaver, Property Manager  

   

  Phone: 919-414-0739

  
	
   

  	
   

  	
   

  
	
  Rent Payment Address.

  	
   

  	
  Allegany Research
  Properties, LLC  

  11521 Milnor Avenue

  Upper Potomac Industrial Park 

  P. O. Box 1210 

  Cumberland, MD 21501-1210

  

 

 3
 

 

	
  Restrictive Covenants

  	
   

  	
  The following Restrictive Covenants apply to the
  Premises: Any and all restrictions, reservations, conditions or limitations
  imposed by the terms of the Master Ground Lease entered into between the
  State of Maryland for the use of the University System of Maryland and on
  behalf of its constituent institution, Frostburg State University and
  Allegany County, dated January 10, 2001, and recorded in Deeds Liber 690,
  Folio 516, among the Land Records of Allegany County, Maryland and the Ground
  Sublease Agreement between the Board of County Commissioners of Allegany
  County, Maryland, and Allegany Research Properties, LLC, a copy of which is
  attached hereto, incorporated herein, and marked as Exhibit I

  
	
   

  	
   

  	
   

  
	
  Allegany Business Center

  	
   

  	
  The business and research park development community
  in which the Building is located.

  
	
   

  	
   

  	
   

  
	
  Security Deposit.

  	
   

  	
  None.

  
	
   

  	
   

  	
   

  
	
  State.

  	
   

  	
  Maryland

  
	
   

  	
   

  	
   

  
	
  Tenant Improvement Allowance.

  	
   

  	
  $1.43 per rentable square foot which is intended to
  cover the costs of architectural and engineering design for the Premises.

  
	
   

  	
   

  	
   

  
	
  Tenant Plan Delivery Date.

  	
   

  	
  15 January 2007.

  
	
   

  	
   

  	
   

  
	
  Tenant’s Proportionate Share.

  	
   

  	
  Tenant’s Proportionate Share of the Building is
  66.95%, which is calculated by dividing the approximately 32,429 square feet
  of the Premises by the approximately 48,435 rentable square feet of the
  Building. If the Building is expanded all formula shall be adjusted pro rata
  to take such expansion into consideration.

  
	
   

  	
   

  	
   

  
	
  Term.

  	
   

  	
  As Shown in Exhibit D.

  

 

1.2.          Special Provisions.  The following special provisions, if any,
shall apply, and where in conflict with other provisions in this Lease, these
special provisions shall control:  None.

2.             PREMISES.

2.1.          Premises.  Landlord leases to Tenant and Tenant leases
from Landlord the Premises.

2.2.          Square
Foot Determinations.  The Building has not been constructed. The Building and Premises shall
generally be as described in Exhibit A but minor adjustments may be determined
by an Architect selected by Landlord. Landlord shall provide to Tenant the
Architect’s determination and calculations. Upon the determination of the
measurements of the 

 4
 

Building and Premises as set forth above, the
parties shall amend this Lease to correct all applicable provisions affected by
the measurement. Rentable Area is outlined in Red on Exhibit A; any revisions
are to be computed using consistent methodology.

2.3.          Common Areas.  Tenant shall have non-exclusive access to the
common areas of the Building.  Landlord
has the exclusive right to (i) designate the Common Areas, (ii) change the
designation of any Common Area and otherwise modify the Common Areas, and (iii)
permit special use of the Common Areas, including temporary exclusive use for
special occasions.  Tenant shall not
interfere with the rights of others to use the Common Areas.  All use of the Common Areas shall be subject
to any rules and regulations promulgated by Landlord.

2.4.          Portions of Common Area inside the building are
shown on Exhibit F.

3.             TERM.

3.1.          Commencement and
Expiration Dates.  The Lease
Term commences on the Commencement Date and expires on the Expiration Date of
Expiration Year, as set forth in Section 1.1 and shown on Exhibit D.

3.2.          Adjustments to
Commencement Date.  The
Commencement Date shall be adjusted as follows:

3.2.1.                                             If
Tenant requests possession of the Premises prior to the Commencement Date, and
Landlord consents, the Commencement Date shall be the date of possession.  All Rent and other obligations under this
Lease shall begin on the date of possession, but the Expiration Date shall
remain the same.

3.2.2.                                             If
Landlord, for any reason, cannot deliver possession of the Premises to Tenant
on the Commencement Date, the Commencement Date, Expiration Date, and all other
dates that may be affected by their change, shall be revised to conform to the
date of Landlord’s delivery of possession of the Premises to Tenant. Any such delay
shall not relieve Tenant of its obligations under this Lease, and neither
Landlord nor Landlord’s agents shall be liable to Tenant for any loss or damage
resulting from the delay in delivery of possession except as set forth in
Section 3.4 below

3.3.          Delivery of Possession.  Unless otherwise specified in Lease Addendum
#1 or Section 3.2.1 of this Lease, “delivery of possession” of the Premises
shall mean 1 December 2007 or if delayed the earlier of: (i) the date Landlord
has the Premises ready for occupancy by Tenant as evidenced by a permanent or
temporary certificate of occupancy, or its equivalent, issued by proper
governmental authority, or (ii) the date Landlord could have had the Premises
ready had there been no delays attributable to Tenant.

3.4.          Delayed Delivery of
Possession. In the event that the Landlord delays delivery of the
Premises to the Tenant and that such late delivery is not the fault of the
Tenant or Force Majeure then the Landlord shall allow Tenant three months free
of all Rents for each month, or part thereof, of such delay. However such free
rent shall not affect the Expiration Date of the Lease.

3.5.          Adjustment of Expiration
Date.  If the Expiration Date
does not occur on the last day of a month, Landlord, at its option, may extend
the Term by the number of days necessary to cause the Expiration Date to occur
on the last day of the last month of the Term. 
Tenant shall 

 5
 

pay
Base Rent and Additional Rent for such additional days at the same rate payable
for the portion of the last month immediately preceding such extension.

3.6.          Right to Occupy.  Tenant shall not occupy the Premises until
Tenant has complied with all of the following requirements to the extent
applicable under the terms of this Lease: (i) delivery of all certificates of
insurance, (ii) if applicable, payment of any required Security Deposit, (iii)
execution and delivery of any required Guaranty, and (iv) if Tenant is an
entity, receipt of a good standing certificate from the State where it was
organized and a certificate of authority to do business in the State of
Maryland (if different). Tenant’s failure to comply with these (or any other
conditions precedent to occupancy under the terms of this Lease) shall not
delay the Commencement Date.

3.7.          Commencement Letter.  Landlord may send a commencement letter (“Commencement
Letter”) to Tenant confirming the Commencement Date. The Commencement Date set
forth in the Commencement Letter shall be conclusive and binding on the parties
unless Tenant objects to the date in writing within ten (10) business days
after delivery of the Commencement Letter.

4.             USE.

4.1.          Permitted Use.  The Premises may be used only for the
Permitted Use set forth in Section 1.1, unless otherwise approved by Landlord
in writing.

4.2.          Prohibited Uses.  Tenant shall not use the Premises:

4.2.1.                                             In
violation of any Restrictive Covenants applicable to the Premises;

4.2.2.                                             In
any manner that constitutes a nuisance or trespass;

4.2.3.                                             In
any manner which increases any premiums for insurance on the Building, or makes
such insurance unavailable to Landlord; provided that, if an increase in
Landlord’s insurance premiums results from Tenant’s use of the Premises,
Landlord may elect to permit the use and charge Tenant for the increase in
premiums, and Tenant’s failure to pay Landlord, on demand, the amount of such
increase shall be a default; or

4.2.4.                                             In
any manner that creates unusual demands for electricity, heating or air
conditioning without Landlord’s prior written consent.

4.3.          Prohibited Equipment in
Premises.  Tenant shall not
install any equipment in the Premises that places unusual demands on the
electrical, heating or air conditioning systems (“High Demand Equipment”)
without Landlord’s prior written consent. 
No such consent will be given if Landlord determines, in its opinion,
that such equipment may not be safely used in the Premises or that Electrical
Service is not adequate to support the equipment.  Landlord’s consent may be conditioned,
without limitation, upon separate metering of the High Demand Equipment and
Tenant’s payment of all engineering, equipment, installation, maintenance,
removal and restoration costs and utility charges associated with the High
Demand Equipment and the separate meter. 
If High Demand Equipment used in the Premises by Tenant affects the
temperature otherwise maintained by the heating and air conditioning system,
Landlord shall have the right to install supplemental air conditioning units in
the Premises with the cost of engineering, installation, operation and maintenance
of the units to be paid by Tenant.  All
costs and expenses relating to High Demand Equipment and Landlord’s
administrative costs (such as reading meters and calculating invoices) shall be
Additional Rent, payable by Tenant upon demand.

 6
 

5.             RENT.

5.1.          Payment Obligations.  Tenant shall pay Base Rent and Additional
Rent (collectively, “Rent”) on or before the first day of each calendar month
during the Term, as follows:

5.1.1.                                             Rent
payments shall be sent to the Rent Payment Address set forth in Section 1.1.

5.1.2.                                             Rent
shall be paid without previous demand or notice.

5.1.3.                                             If
the Term commences on a day other than the first day of a month, then Rent for
such month shall be (1) prorated for the period between the Commencement Date
and the last day of the month in which the Commencement Date falls, and (2) due
and payable on the Commencement Date.

5.1.4.                                             For
each Base Rent payment Landlord receives after the fifth (5th) day of the month, Landlord shall be entitled to all
default remedies provided under  the terms of
this Lease, and a late charge in the amount of five percent (5%) of all Base
Rent due for such month.  Notwithstanding
the foregoing, if Tenant fails to pay rent when due (a “Late Payment”), no more
than twice during any calendar year such Late Payment shall not be considered
an event of Default if, within five (5) business days after written notice from
Landlord (the “Grace Period”), Tenant submits the rent due, including the late
charge of five percent (5%) for such month

5.1.5.                                             If Landlord presents Tenant’s check to
any bank and Tenant has insufficient funds to pay for such check, then Landlord
shall be entitled to the maximum lawful bad check fee or five percent (5%) of
the amount of such check, whichever is less. Twice during any Calendar year, such
insufficient funds shall not be
considered an event of Default. If more than twice in any Calendar year
Landlord presents Tenant’s check to any bank and Tenant has insufficient funds,
then all Default remedies provided under the terms of this Lease shall apply.

5.2.          Base Rent.  Tenant shall pay
Base Rent as set forth in Section 1.1 and Exhibit D.

5.3.          Additional Rent.  In addition to Base
Rent, Tenant shall pay as rent all sums and charges due and payable by Tenant
under this Lease (“Additional Rent”), including, but not limited to, the
following:

5.3.1.                                             Tenant’s
Proportionate Share of Landlord’s Operating Expenses as described below and in
all other portions of Section 5 of this Lease;

5.3.2.                                             Any
sales or use tax imposed on rents collected by Landlord or any tax on rents in
lieu of ad valorem taxes on the Building shall have no effect on this lease.

 7
 

5.3.3.                                             Property
Taxes differing from those per square foot costs for the building shown in
Exhibit E.

5.3.4.                                             Insurance
operating costs differing from those per square foot costs for the building
shown in Exhibit E.

5.3.5.                                             Tenant’s
Proportionate Share of Common Area Operating Expenses.

5.4.          Common Area
Operating Expenses.  For each Short Year, Tenant shall pay as
Additional Rent its pro rata share of the estimated Common Area Operating
Expenses each month with payment of Tenant’s Base Rent. If the Short
Year begins on 1 December, 2007, Tenant’s monthly pro rata payment shall be one
third (1/3) of Tenant’s Proportionate share for the year. If the Short Year
commences on a date other than 1 December 2007, payments shall be adjusted
proportionately. For each calendar year after the Base Year, Tenant shall pay
to Landlord, as Additional Rent, Tenant’s Proportionate Share of Operating
Expenses incurred by Landlord’s operation and maintenance of the Common Area.
In no event shall these expenses increase by more than 10% per year.

5.4.1.                                             For
purposes of calculating real property taxes for the Base Year, and for the
purposes of calculating insurance, Landlord shall use the projections shown on
Exhibit E.

5.4.2.                                             For
each calendar year after the Short Year, Landlord shall estimate the amount of
Common Area Operating Expenses for the next Calendar Year.  Landlord shall send Tenant a written
statement showing the amount of Tenant’s Proportionate Share of  estimated Operating Expenses.  Tenant shall pay one-twelfth (1/12th) of Tenant’s Proportionate
Share of such Operating Expenses each month with the payment of Tenant’s Base
Rent.

5.4.3.                                             Within
ninety (90) days after the end of each Calendar year, or as soon as reasonably
possible thereafter, Landlord shall send Tenant a report showing the actual
Common Area Operating Expenses for the previous Calendar year (or Short Year,
as applicable) with a reconciliation of the Tenant’s Proportionate Share of
Operating Expenses for that Calendar Year (the “Annual Statement”).  Tenant shall pay to Landlord any Additional
Rent owed; or alternatively, Landlord shall adjust Tenant’s Rent payments if
Landlord owes Tenant a credit.  After the
Expiration Date, Landlord shall send Tenant the final Annual Statement for the
Term, and Tenant shall pay to Landlord Additional Rent as owed, or if Landlord
owes Tenant a credit, then Landlord shall pay Tenant a refund.  If this Lease expires or terminates on a day
other than November 30, then Additional Rent shall be prorated on a 365-day
calendar year (or 366 if a leap year). 
All payments or adjustments for Additional Rent shall be made within
fifteen (15) days after the applicable Annual Statement is delivered to Tenant.

5.4.4.                                             The
Common Area Operating Expenses shall be accounted for and reported on a cash
basis, but the determination of whether an item is an expense or a capital
expenditure shall be determined in accordance with Generally Accepted Accounting
Principles (“GAAP”).

5.4.5.                                             The
term “Common Area Operating Expenses” shall mean all expenses and costs (but
excluding charges separately paid by other tenants of the Building or third
parties) of every kind and nature which Landlord shall pay or become 

 8
 

                                                                        obligated
to pay because of or in connection with the ownership, maintenance and
operation of the Common Area, including but not limited to, the following:

5.4.5.1.                                                            Wages,
salaries and related expenses (including taxes, insurance and benefits) of obtaining,
training and employing all on-site and off-site personnel engaged in the
operation, maintenance and access control of the Building;

5.4.5.2.                                                            Cost
of all supplies, tools, equipment and materials, whether purchased or leased,
used in the operation and maintenance of the Building;

5.4.5.3.                                                            Cost
of utilities for the Common Area , including but not limited to, water, steam,
gas, sewer and electricity, and power for heating, lighting, air conditioning
and ventilating the Building (including all Common Areas and service areas)
except as separately metered and billed;

5.4.5.4.                                                            Cost
of all maintenance and service agreements for the Common Area  and the equipment therein, including but not
limited to, access control service, window cleaning, janitorial service,
landscape maintenance, HVAC maintenance, and elevator maintenance;

5.4.5.5.                                                            Cost
of all insurance, including but not limited to, fire, casualty, liability and
rental abatement insurance applicable to the Common Area and Landlord’s
personal property used in connection therewith, plus the cost of all deductible
payments made by Landlord in connection therewith;

5.4.5.6.                                                            Cost
of repairs, replacements and general maintenance of the Common Areas or the
Building (excluding the Premises), including those costs related to parking,
sidewalks, walkways and landscaping in any portion of the property of which the
Building is a part (excluding repairs, replacements and general maintenance
paid by proceeds of insurance or by Tenant or other third parties);

5.4.5.7.                                                            Any
and all Common Area maintenance costs related to public areas, including
parking, sidewalks, walkways and landscaping in any portion of the property of
which the Building is a part;

5.4.5.8.                                                            Any
assessments for repairs, replacements and general maintenance of common areas
in Allegany Business Center  levied by
any owner’s association or sub-association of which the Owner is a member by
virtue of its ownership of the Building;

5.4.5.9.                                                            All
taxes, assessments and governmental charges, whether or not directly paid by
Landlord, whether federal, state, county or municipal, and whether they be by
taxing districts or governmental authorities presently taxing the Building or
by 

 9
 

                                                                                                others
subsequently created, attributable to the Building or its operation, excluding,
however, taxes and assessments attributable to the personal property of
tenants, federal and state taxes on income, death taxes, franchise taxes, and
taxes imposed or measured on or by the income of Landlord from the operation of
the Building. Consultation, accounting and legal fees and other fees and costs
resulting from any challenge of tax assessments also shall be included in
Operating Expenses.  Tenant will
separately pay the ad valorem taxes on its personal property and, if Landlord
elects, on the value of the leasehold improvements in the Premises (and if the
taxing authorities do not separately assess Tenant’s leasehold improvements,
Landlord may make a reasonable allocation of the ad valorem taxes allocated to
the Building to give effect to this sentence). 
All taxes, assessments, and governmental charges shall be included in
Operating Expenses in the calendar year in which such taxes, assessments or
governmental charges are paid;

5.4.5.10.                                                      Amortization
of the cost, together with reasonable financing charges, of furnishing and
installing capital investment items which (i) are primarily for the purpose of
(1) reducing Operating Expenses, or (2) promoting safety; or (ii) may be
required by any governmental authority (“Permitted Capital Operating Expenses”).  In the case of Permitted Capital Operating
Expenses made for the purpose of reducing Operating Expenses, such costs shall
be amortized over such reasonable period as Landlord shall determine, but in
any event the amount of the costs for any Calendar Year shall not exceed the
savings in Operating Expenses for that Calendar Year.  In the case of Permitted Capital Operating
Expenses made for purposes of promoting safety or complying with the
requirements of governmental authorities, such costs shall be amortized over
the useful life of the improvements as determined in accordance with generally
accepted accounting principles (but in no event to extend beyond the remaining
useful life of the Building); and

5.4.5.11.                                                      Cost
of an office in the Building maintained for the Property Manager.

5.4.6.                                             Notwithstanding
the foregoing provisions, Common Area Operating Expenses shall not include the
following:

5.4.6.1.                                                            Leasing
commissions, attorneys’ fees, costs, disbursements and other expenses incurred
in connection with negotiations for leases with tenants, prospective tenants or
other occupants of the Building, or similar costs incurred in connection with
disputes with tenants, prospective tenants or other occupants of the Building,
or similar costs and expenses incurred in connection with negotiations or
disputes with consultants, management agents, purchasers or mortgagees of the
Building;

 10
 

5.4.6.2.                                                            Non-cash
items, such as deductions for depreciation or obsolescence of the Building and
the Building equipment, or interest on capital invested (except for Permitted
Capital Operating Expenses);

5.4.6.3.                                                            Payments
of principal and interest or other finance charges made on any debt (except for
Permitted Capital Operating Expenses), and rental payments made under any
ground or underlying lease or leases, except to the extent that a portion of
such payments is expressly for ad valorem/real estate taxes or insurance
premiums on the Building;

5.4.6.4.                                                            Costs
incurred by Landlord in the sale, financing, refinancing, mortgaging, selling
or change of ownership of the Building, including brokerage commissions,
management fee’s, attorneys’ fees and accountants’ fees, closing costs, title
insurance premiums, sales taxes, transfer taxes and interest charges; and

5.4.6.5.                                                            Costs
which are required to be capitalized in accordance with generally accepted
accounting principles (except for Permitted Capital Operating Expenses).

5.4.7.                                             If
Tenant disputes the amount of Common Area Operating Expenses as set forth in
the Annual Statement from the Landlord, then Tenant shall be provided with
copies of Landlord’s books and records relating to Operating Expenses audited
by a qualified professional selected by Tenant in accordance with Section
5.4.7.2 of this Lease or by Tenant itself, provided (i) Tenant gives written
notice of the audit within forty-five (45) days of Tenant’s receipt of the
Annual Statement, and (ii) Tenant is not in default under the Lease.  No subtenant shall have any right to conduct
an audit and no assigns shall conduct an audit for any period during which such
assignee was not in possession of the Premises.

5.4.7.1.                                                            Books
and records necessary to accomplish any audit permitted under this Section
shall be retained for twelve months after the end of each calendar year, and on
receipt of notice of Tenant’s dispute of the operating expenses shall be made
available to Tenant to conduct the audit, which (at Landlord’s option) may be
either at the Premises, at the Landlord’s division office for the area in which
the Premises are located, or at Landlord’s home office in Frostburg,
Maryland.  If Tenant and Landlord dispute
the amount of operating expenses after Tenant’s Audit, then Landlord’s independent certified public
accountant shall consult with Tenant’s professional to reconcile any discrepancies.

5.4.7.2.                                                            In the event that the
Tenant elects to have a professional audit of 
Landlord’s Operating Expenses as provided in this Lease, such audit must
be conducted by an independent nationally or regionally recognized accounting
firm that is not being compensated by Tenant on a contingency fee basis.  All 

 11
 

                                                                                                information obtained
through such audit as well as any compromise, settlement or adjustment reached
as a result of such audit shall be held in strict confidence by Tenant and its
officers, agents, and employees and as a condition to such audit, the Tenant’s
auditor shall execute a written agreement agreeing that the auditor is not
being compensated on a contingency fee basis and that all information obtained
through such audit as well as any compromise, settlement or adjustment reached
as a result of such audit, shall be held in strict confidence and shall not be
revealed in any manner to any person except upon the prior written consent of
the Landlord, which consent may be withheld in Landlord’s sole discretion, or
if required pursuant to any litigation between Landlord and Tenant materially
related to the facts disclosed by such audit, or if required by law.

5.4.7.3.                                                            If Common Area Operating
Expenses were overstated by ten percent (10%) or more, then Landlord shall
reimburse Tenant for its reasonable Audit costs; otherwise, Tenant shall pay
its own costs.

6.             SECURITY DEPOSIT.
[Deleted]

7.             SERVICES BY LANDLORD.

7.1.          Base Services.  At Tenant’s sole costs, Tenant shall provide
the services to the Premises to include all utilities including Data, repairs,
replacement and maintenance and janitorial services to the Premises. Where
appropriate the Landlord will install metering or sub-metering to enable
accurate measurements of the Tenant’s obligations for payment of these basic
services. Tenant’s Proportionate Share of Common Area Operating Expenses shall
be billed to the Tenant as Additional Rent. Provided that Tenant is not then in
default, Landlord shall cause the following Common Area services to be
furnished to the Building, or (as applicable) the Premises:

7.1.1.                                             Common
Area Water (if available from city mains) for drinking, lavatory and toilet
purposes;

7.1.2.                                             Common
Area Electricity (if available from the utility supplier) for the building standard
fluorescent lighting and for the operation of general office machines, such as
electric typewriters, desk top computers, dictating equipment, adding machines
and calculators, and general service non-production type office copy
machines; provided that Landlord shall have no obligation to provide more than
the amount of power for convenience outlets as set forth in Section 1.1;

7.1.3.                                             All
Operatorless elevator maintenance and repair service;

7.1.4.                                             Common
Area Building standard fluorescent lighting composed of 2’ x 4’ fixtures;
Tenant shall service, replace and maintain at its own expense any incandescent
fixtures, table lamps, or lighting other than the building standard fluorescent
light, and any dimmers or lighting controls other than controls for the
building standard fluorescent lighting;

 12
 

7.1.5.                                             Common
Area Heating and air conditioning for the reasonably comfortable use and
occupancy of the Premises as follows:

7.1.5.1.                                                            Common
Area heating and cooling conforming to any governmental regulation prescribing
limitations thereon shall be deemed to comply with this service;

7.1.6.                                             Common
Area Janitorial services five (5) days a week, excluding Holidays, per the
specifications set forth in Exhibit C; and

7.1.7.                                             Common
Area Unreserved parking spaces, not to exceed the number specified in Section
1.1, for use by Tenant’s employees and invitees in common with the other
tenants of the Building and their employees and invitees.

7.1.8.                                             Common
Area. Parking and Hardscape janitorial, repairs, replacement, maintenance snow
removal and lighting.

7.1.9.                                             Common
Area. Landscaping.

7.2.          Landlord’s Maintenance.  Landlord shall make all repairs and
replacements to the Building Common Areas and warranty repairs to the Building
Standard Improvements in the Premises, except for repairs and replacements that
Tenant must make under the provisions of this Lease.  Landlord’s maintenance shall include the
roof, foundation, exterior walls, interior structural walls, all structural
components, and all Building systems not specifically located in the Tenants
Premises, such as mechanical, electrical, HVAC, and plumbing.  Repairs or replacements shall be made within
a reasonable time (depending on the nature of the repair or replacement needed)
after receiving notice from Tenant or Landlord having actual knowledge of the
need for a repair or replacement.  All
such costs which qualify as Common Area Operating Expenses may be passed
through as Additional Rent pursuant to the terms of this Lease. If Landlord
does not perform its maintenance, repair or replacement obligations in a timely
manner, commencing the same within five (5) days after receipt of notice from
Tenant specifying the work needed, and thereafter diligently and continuously
pursuing the work until completion, then Tenant shall have the right, but not
the obligation, to perform such work. 
Any reasonable amounts expended by Tenant on such maintenance, repair or
replacement shall be paid by Landlord to Tenant upon demand. The cost of
repairs or replacements needed because of Tenant’s misuse or neglect shall be
charged directly to Tenant as Additional Rent.

7.2.2        Moved to Section 8.3.

7.3.          Limitation on Landlord’s Liability. Only in the event of
Landlord’s negligence shall Landlord be liable to Tenant for any damage caused
to Tenant’s Property or any interruption in Tenant’s use of the Premises due to
(i) the Building (including the roof, foundation, exterior walls, interior
structural walls, and structural components) or any Building System (including
any HVAC, plumbing or electrical system) being improperly constructed or being
or becoming out of repair, or (ii) arising from any leaking, clogged,
overflowing or ruptured gas, water, sewer, steam or refrigerant lines.

7.4.          No Abatement.  There shall be no abatement or reduction of
Rent by reason of any of the foregoing services not being continuously provided
to Tenant.  Landlord shall have the right
to shut down the Building systems (including electricity and HVAC systems) for
required maintenance and safety inspections, and in cases of emergency. Unless
an emergency occurs Landlord shall provide Tenant with 30 days prior written
notification of any such shutdown.

 13
 

7.5.          Tenant’s Obligation to
Report Defects.  Tenant shall
report to Landlord immediately any defective condition in or about the Premises
known to Tenant.

8.             TENANT’S ACCEPTANCE AND
MAINTENANCE OF PREMISES.

8.1.          Acceptance of Premises.  Subject to the terms of the attached Lease
Addendum #1 — Workletter, (the “Workletter”) and a Tenant generated “Punchlist”,
if any, Tenant’s occupancy of the Premises is Tenant’s representation to
Landlord that (i) Tenant has examined and inspected the Premises as can
reasonably be performed, (ii) finds the Premises to be as represented by
Landlord and satisfactory for Tenant’s Permitted Use, and (iii) constitutes
Tenant’s acceptance of the Premises “as is”. 
Landlord makes no representation or warranty as to the condition of the
Premises except as may be specifically set forth in the Workletter.

8.2.          Move-In Obligations.  Tenant shall schedule its move-in with the
Property Manager.  Unless otherwise
approved by the Property Manager, move-in shall take place at a mutually
agreeable time.  During Tenant’s move-in,
a representative of Tenant must be on-site with Tenant’s moving company to
insure proper treatment of the Building and the Premises.  If Tenant’s move-in occurs during Normal
Building Operating Hours, all elevators, entrances, hallways and other Common
Areas must remain in use for the general public.  If desired by Tenant in connection with its
move-in, any specialized use of elevators or other Common Areas must be
coordinated with and approved by the Property Manager.  Tenant must properly dispose of all packing
material and refuse in accordance with the Rules and Regulations.  Any damage or destruction to the Building or
the Premises due to moving will be the sole responsibility of Tenant.

8.3.          Tenant’s Maintenance.  Tenant shall make all repairs and replacements
to the Premises other than as provided in Section 7.2. Tenant’s obligations shall
include but are not limited to maintenance, repairs and replacement of
fixtures, furniture, finishes and equipment including interior walls, all
Building systems specifically located in the Premises, including mechanical,
electrical, HVAC heat pumps, piping and ducting, and plumbing. Repairs and
replacement shall be made within a reasonable time to assure that the space is
in good working order and repair. Tenant shall: (i) keep the Premises and
fixtures in good order; (ii) make repairs and replacements to the Premises ;
(iii) repair and replace all improvements, including any special equipment or
decorative treatments, installed by or at Tenant’s request that serve the
Premises (unless the Lease is ended because of casualty loss or condemnation);
and (iv) not commit waste.

8.4.          Alterations to Premises.  Tenant shall make no structural or interior
alterations to the Premises.  If Tenant
desires alterations, then Tenant shall provide Landlord’s Property Manager with
a complete set of construction drawings. 
Any such alterations are subject to the prior written approval of
Landlord which shall not be unreasonably withheld.  If Landlord consents to the alterations, then
the Property Manager shall determine the actual cost of the work to be done (to
include the Construction Supervision Fee). 
Tenant may then either authorize Landlord to have the work done at
Tenant’s expense or withdraw its request for the alterations.

8.5.          Restoration of Premises.  At the expiration or earlier termination of
this Lease, Tenant shall (i) deliver each and every part of the Premises in
good repair and condition, ordinary wear and tear and damage by insured
casualty excepted, and (ii) restore the Premises at Tenant’s sole expense to
the same condition as existed at the Commencement Date, ordinary wear and tear
and damage by insured casualty excepted. 
If Tenant has required or installed Non-Standard Improvements, such
improvements shall be removed as part of Tenant’s restoration obligation.  Landlord, however, may elect to require Tenant
to leave any Non-Standard 

 14
 

Improvements
in the Premises unless at the time that such Non-Standard Improvements were
installed, Landlord agreed in writing that Tenant could remove such
improvements.  Tenant shall repair any
damage caused by the removal of any Non-Standard Improvements.

8.6.          Landlord’s Performance of
Tenant’s Obligations.  If
Tenant does not perform its maintenance or restoration obligations in a timely
manner, commencing the same within five (5) days after receipt of notice from
Landlord specifying the work needed, and thereafter diligently and continuously
pursuing the work until completion, then Landlord shall have the right, but not
the obligation, to perform such work. 
Any amounts expended by Landlord on such maintenance or restoration
shall be Additional Rent to be paid by Tenant to Landlord upon demand.

8.7.          Construction Liens.  Tenant shall have no power to do any act or
make any contract that may create or be the foundation of any lien, mortgage or
other encumbrance upon the reversionary or other estate of Landlord, or any
interest of Landlord in the Premises.  NO
CONSTRUCTION LIENS OR OTHER LIENS FOR ANY LABOR, SERVICES OR MATERIALS
FURNISHED TO THE PREMISES SHALL ATTACH TO OR AFFECT THE INTEREST OF LANDLORD IN
AND TO THE PREMISES OR THE BUILDING. 
Tenant shall keep the Premises and the Building free from any liens
arising out of any work performed, materials furnished, or obligations incurred
by or on behalf of Tenant.  Should any
lien or claim of lien be filed against the Premises or the Building by reason
of any act or omission of Tenant or any of Tenant’s agents, employees,
contractors or representatives, then Tenant shall cause the same to be canceled
and discharged of record by bond or otherwise within ten (10) days.  Should Tenant fail to discharge the lien
within ten (10) days, then Landlord may discharge the lien.  The amount paid by Landlord to discharge the
lien (whether directly or by bond), plus all administrative and legal costs
incurred by Landlord, shall be Additional Rent payable on demand.  These remedies shall be in addition to all
other remedies available to Landlord under this Lease or otherwise.

9.             PROPERTY OF TENANT.

9.1.          Property Taxes.  Tenant shall pay when due all taxes levied or
assessed upon Tenant’s equipment, fixtures, furniture, leasehold improvements
and personal property located in the Premises. 
Tenant shall pay as Additional Rent its pro rata share of any increases
in assessed taxes above the annual taxes shown in the Annual Anticipated
Property Tax and Insurance Table in Exhibit E.

9.2.          Generator and Satellite
Antennae.  Subject to local
ordinances and regulations Tenant, at its expense, shall have the right to
install a back up generator on a concrete pad that has been suitably prepared
by the Landlord as part of Tenant Improvements adjacent to the Premises and
shall be allowed to cable such generator to the Premises. Tenant shall have the
right to mount no more than five (5) small aperture satellite antennae on the
roof of the building and cable same to the Premises. Tenant shall have the
option to have the costs associated with the installation of this equipment
paid out of Tenant Improvement Allowance. All such installations shall be in
subject to and in compliance with all State or Local ordinances and regulations
or standards that may apply.

9.3.          Removal.  Tenant may remove all non-standard equipment,
fixtures and equipment which it has placed in the Premises; provided, however,
that such removal is not overly intrusive as determined in the sole opinion of
the Landlord, and Tenant must repair all damages caused by such removal. If
Tenant does not remove its property from the Premises upon the expiration or
earlier termination (for whatever cause) of this Lease, such property shall be
deemed abandoned by Tenant. Landlord shall provide Tenant 30 days written
notice of removal 

 15
 

of
any items the Landlord requires and if not removed by Tenant then the Landlord
may dispose of the same in whatever manner Landlord may elect without any
liability to Tenant. Examples of overly intrusive removal of fixtures and
equipment include but are not limited to removal of wiring in the walls,
security locks in doors and door frames, plumbing, HVAC systems that are not
free standing, cabinets, etc.

10.           SIGNS.  Tenant may not erect, install or display any
sign or advertising material upon the exterior of the Building or Premises
(including any exterior doors, walls or windows) without the prior written
consent of Landlord, which consent may be withheld in Landlord’s sole
discretion.  Door and directory signage
shall be provided and installed by the Landlord in accordance with building
standards at Tenant’s expense, unless otherwise provided in the Workletter.
Except that the Tenant shall have the right to erect an illuminated or non
illuminated sign on the upper eastern façade of building of such design and
construction that is mutually agreeable to both Parties. The location and
design shall be mutually planned as part of the Work Letter.

11.           ACCESS TO PREMISES.

11.1.        Tenant’s Access.  Tenant and its agents, employees, contract
employees and invitees, shall have access to the Premises and reasonable
ingress and egress to common and public areas of the Building twenty-four hours
a day, seven days a week; provided, however, Landlord by reasonable regulation
may control such access for the comfort, convenience, safety and protection of
all tenants in the Building, or as needed for making repairs and alterations.  Tenant shall be responsible for granting its
agents, employees, invitees and guests access to the Premises after Normal
Building Operating Hours and on weekends and Holidays, and in no event shall
Tenant compromise the security of the Building in granting such access. Tenant’s
access to the Business Support Areas defined and marked in Exhibit G is limited
to Normal Business Hours as determined in section 1.1 and such areas are
intended for the use by employees only to the extent that such use is necessary
and customary for the support of Tenants primary business and not for the
personal use of the Tenant’s employees unrelated to the Tenant’s primary
business.

11.2.        Landlord’s Access.  Landlord shall have the right, at all
reasonable times and upon reasonable and written notice, either itself or
through its authorized agents, to enter the Premises (i) to make repairs,
alterations or changes as Landlord deems necessary, (ii) to inspect the
Premises, mechanical systems and electrical devices, and (iii) to show the Premises
to prospective mortgagees and purchasers. 
Within one hundred eighty (180) days prior to the Expiration Date,
Landlord shall have the right, either itself or through its authorized agents,
to enter the Premises at all reasonable times to show prospective tenants;
provided, however that Landlord will not enter the Premises with prospective
tenants without arranging for an escort by the Tenant and shall provide Tenant
with prior written notice.

11.3.        Emergency Access.  Landlord shall have the right to enter the
Premises at any time without notice in the event of an emergency.  If Landlord exercises this right, it shall
notify Tenant as soon as is reasonably possible.

 

 16

 

12.           TENANT’S COMPLIANCE.

12.1.        Laws.  Tenant shall comply with all applicable laws,
ordinances and regulations affecting the Premises, whether now existing or
hereafter enacted.

12.2.        Rules and Regulations.  Tenant shall comply with the Rules and
Regulations attached as Exhibit B.  The Rules and Regulations may be modified
from time to time by Landlord, effective as of the date delivered to Tenant or
posted on the Premises, provided such rules are uniformly applicable to all
tenants in the Building.  The terms of
this Lease shall supersede any conflicting Rules and Regulations.

13.           ADA  COMPLIANCE.

13.1.        Tenant’s Compliance.  Tenant, at Tenant’s sole expense, shall comply
with all laws, rules, orders, ordinances, directions, regulations and
requirements of federal, state, county and municipal authorities now in force,
which shall impose any duty upon Landlord or Tenant with respect to the use or
occupation of the Premises or alteration of the Premises to accommodate persons
with special needs, including using all reasonable efforts to comply with The
Americans With Disabilities Act (the “ADA”).

13.2.        Landlord’s Compliance.  At the Commencement date of this Lease the
Landlord, at Landlord’s sole expense, shall comply with the requirements of the
ADA as it applies to the Premises (excluding Furniture, Fixtures, and Equipment
not provided or installed by Landlord), the Common Areas and restrooms of the
Building. Landlord shall not be required to make changes to the Common Areas or
restrooms of the Building to comply with ADA standards adopted after
construction of the Building unless specifically required to do so by law.

13.3.        ADA Notices.  If Tenant receives any notices alleging a
violation of ADA relating to any portion of the Building or Premises (including
any governmental or regulatory actions or investigations regarding
non-compliance with ADA), then Tenant shall notify Landlord in writing within
ten (10) days after receipt of such notice and shall provide Landlord with
copies of any such notice.

14.           INSURANCE REQUIREMENTS.

14.1.        Tenant’s Liability
Insurance.  Throughout the
Term, Tenant, at its sole cost and expense, shall keep or cause to be kept for
the mutual benefit of Landlord, Landlord’s Property Manager, and Tenant,
Commercial General Liability Insurance (1986 ISO Form or its equivalent) with a
combined single limit of ONE
MILLION DOLLARS ($1,000,000.00) for each Occurrence, and General
Aggregate of at least THREE MILLION DOLLARS ($3,000,000.00), which policy shall
insure against liability of Tenant, arising out of and in connection with
Tenant’s use of the Premises, and which shall insure the indemnity provisions
contained in this Lease. Landlord shall be an Additional Named Insured on
Tenant’s Liability Insurance Policy.

14.2.        Tenant’s Property Insurance;
Limitation on Landlord Liability.  Throughout the Term, Tenant shall carry the
equivalent of ISO Special Form Property Insurance on Tenant’s Property for full
replacement value and including sprinkler leakage coverage, and with
coinsurance waived.  For purposes of this
provision, “Tenant’s Property” shall mean Tenant’s personal property and
fixtures, and any Non-Standard Improvements to the Premises.

14.3.        Certificates of Insurance.
 Prior to taking possession of
the Premises, and annually thereafter, Tenant shall deliver to Landlord
certificates or other evidence of insurance satisfactory to Landlord.  If Tenant fails to provide Landlord with such
certificates or other evidence of insurance coverage, Landlord may obtain such
coverage and the cost of such coverage shall be Additional Rent payable by
Tenant upon demand.

14.4.        Insurance Policy
Requirements.  Tenant’s
insurance policies required by this Lease shall: (i) be issued by insurance
companies licensed to do business in the state in which the Premises are
located with a general policyholder’s ratings of at least A- and a financial
rating of 

 17
 

at
least VI in the most current Best’s Insurance Reports available on the
Commencement Date, or if the Best’s ratings are changed or discontinued, the
parties shall agree to a comparable method of rating insurance companies; (ii)
name Landlord and Landlord’s Property Manager as additional named insureds as
their interest may appear [other landlords or tenants may be added as
additional insureds in a blanket policy]; (iii) provide that the insurance not
be canceled, non-renewed or coverage materially reduced unless thirty (30) days
advance notice is given to Landlord; (iv) be non-assessable primary policies,
and non-contributing with any insurance that Landlord may carry; (v)
provide that any loss shall be payable notwithstanding any negligence of
Landlord or Tenant which might result in a forfeiture of such insurance or the
amount of proceeds payable; and (vi) have no deductible exceeding TEN THOUSAND
DOLLARS ($10,000), unless approved in writing by Landlord.

14.5.        Landlord’s Property
Insurance.  Landlord shall
keep the Building, including the improvements (but excluding Tenant’s
Property), insured against damage and destruction by perils insured by the
equivalent of ISO Special Form Property Insurance in the amount of the full
replacement value of the Building.

14.6.        Tenant’s Obligation for
payment of Property Insurance. 
Tenant shall pay as Additional Rent its pro rata share of any increases
in Property Insurance above the annual insurance shown in the Annual
Anticipated Property Tax and Insurance Table in Exhibit E.

14.7.        Mutual Waiver of Claims
and Subrogation.  Notwithstanding any other provisions in this
Lease, Landlord hereby releases and waives unto Tenant (including all of its
partners, stockholders, officers, directors, employees and agents), its
successors and assigns, and Tenant hereby releases and waives unto Landlord
(including all of its partners, stockholders, officers, directors, employees
and agents), its successors and assigns, all rights to claim damages for any
injury, loss, cost or damage to persons or to the Premises or any other
casualty insured under the terms of any property, general liability, or other
policy of insurance maintained by Landlord or Tenant, or required to be
maintained by Landlord or Tenant under the terms of this Lease.  As respects all policies of insurance carried
or maintained pursuant to this Lease, Tenant and Landlord each waive the insurance
carriers’ rights of subrogation.

15.           INDEMNITY.  Subject to the insurance
requirements, releases and mutual waivers of subrogation set forth in this
Lease, Tenant agrees as follows:

15.1.        Tenant Indemnity.  Tenant shall indemnify and hold
Landlord harmless from and against any and all claims, damages, losses,
liabilities, lawsuits, costs and expenses (including attorneys’ fees at all
tribunal levels) arising out of or related to (i) any activity, work, or other
thing done, permitted or suffered by Tenant in or about the Premises or the Building,
(ii) any breach or default by Tenant in the performance of any of its
obligations under this Lease, or (iii) any act or neglect of Tenant, or any
officer, agent, employee, contractor, servant, invitee or guest of Tenant.

15.2.        Landlord Indemnity.  Landlord shall indemnify and hold
Tenant harmless from and against any and all claims, damages, losses,
liabilities, lawsuits, costs and expenses (including attorneys’ fees at all
tribunal levels) arising out of or related to (i) any activity, work, or other
thing done, permitted or suffered by Landlord in or about the Premises or the
Building, or (ii) any breach or default by Landlord in the performance of any
of its obligation under this Lease (iii) any act or neglect of Landlord, or any
officer, employee, or contractor of Landlord. 
Tenant’s failure to obtain any insurance coverage required under the
terms of this Lease shall void Landlord’s indemnity obligation to the extent
such insurance would have provided coverage for the claim.

 18
 

15.3.        Defense Obligation.  If any such action is brought against either
party, then the other party, upon notice from the indemnified party, shall
defend the same through counsel selected by the indemnified party’s insurer, or
other counsel acceptable to the indemnified party.

15.4.        Survival.  The indemnity and defense obligation
provisions of this Section shall survive the expiration or termination of this
Lease.

16.           QUIET ENJOYMENT.  Tenant shall have quiet enjoyment and
possession of the Premises provided Tenant promptly and fully complies with all
of its obligations under this Lease.  No
action of Landlord or other tenants working in other space in the Building, or
in repairing or restoring the Premises, shall be deemed a breach of this
covenant if reasonable access to the Premises is provided to Tenant.

17.           SUBORDINATION; ATTORNMENT;
NON-DISTURBANCE; AND ESTOPPEL CERTIFICATE.

17.1.        Subordination.  This Lease is subject and subordinate to each
mortgage or ground lease which may now or hereafter cover all or any part of
the property of which the Premises is a part. 
This subordination shall be self-operative and no further instrument of
subordination is required.  Tenant,
however, within ten (10) days after Landlord’s request, shall execute any
appropriate certificate or instrument to confirm such subordination.  Notwithstanding the foregoing, the mortgagee
or ground lessor may elect at any time to cause their interest in the property
to be subordinate and junior to Tenant’s interest under this Lease by filing an
instrument in the real property records of Allegany County, Maryland, effecting
such election and providing Tenant with notice of such election.

17.2.        Attornment.  In
the event of the enforcement of its rights by any mortgagee under a mortgage,
or by any lessor under any ground lease, Tenant, upon request of any person or
party succeeding to the interest of Landlord as a result of such enforcement (“Successor”),
automatically will become the tenant of such Successor without change in the
terms or other provisions of this Lease; provided, however, that such Successor
shall not be (i) bound by any payment of the Rent for more than one month in
advance except prepayments in the nature of security for the performance by
Tenant of its obligations under this Lease; (ii) bound by any amendment or
modification of this Lease made without the consent of any such mortgagee or
ground lessor, as applicable, (iii) liable for any act, warranty, neglect,
default or omission of the prior Landlord under this Lease; (iv) subject to the
offsets, deductions or defenses which Tenant might have arising out of acts or
omissions of any prior Landlord under this Lease; (v) liable for the breach of
any warranties or obligations relating to construction of improvements for the
property of which the Premises is a part or leasehold improvements in the
Premises performed or to have been performed by Landlord, or (vi) liable for
the return of any security deposit not delivered to such successor in interest
or ground lessor, as the case may be.

17.3.        Non-Disturbance.  Tenant’s obligation to subordinate its
interests to any mortgage or ground lease, and to attorn to any Successor, is
conditioned upon the mortgagee, ground lessor, or Successor agreeing to not
disturb Tenant’s quiet enjoyment of the Premises during the Term so long as
Tenant is not in default under the terms of this Lease.

17.4.        Estoppel Certificates.  Tenant agrees to execute within ten (10)
business days after request, and as often as requested, estoppel certificates
confirming any factual matter requested by Landlord which is true and is within
Tenant’s knowledge regarding this Lease, and the Premises, including but not
limited to: (i) the Commencement Date and (if different) the date of occupancy,
(ii) Expiration Date, (iii) the amount of Rent due and date to which Rent has
been paid, (iii) whether Tenant has any defense or offsets to the enforcement
of this Lease or the Rent 

 19
 

payable,
(iv) any default or breach by Landlord, and (v) whether this Lease, together
with any modifications or amendments, is in full force and effect. Tenant shall
attach to such estoppel certificate copies of any modifications or amendments
to the Lease.

18.           ASSIGNMENT — SUBLEASE.

18.1.        Landlord Consent.  Tenant may not assign or encumber this Lease
or its interest in the Premises arising under this Lease, and may not sublet
all or any part of the Premises without first obtaining the written consent of
Landlord, which consent shall not be withheld unreasonably.  Factors which Landlord may consider in
deciding whether to consent to an assignment or sublease include (without
limitation), (i) the creditworthiness of the assignee or sublessee, (ii) the
proposed use of the Premises (iii) any renovations to the Premises or special
services required by the assignee or sublessee, and (iv) business interest of
Landlord. Landlord will not consent to an assignment or sublease that might
result in a use that conflicts with the rights of any existing tenant.  One consent shall not be the basis for any
further consent.

18.2.        Definition of Assignment.  The term “assignment” includes the following:
(i) if Tenant is a partnership, the withdrawal or change, whether voluntary,
involuntary or by operation of law, of partners owning thirty percent (30%) or
more of the partnership, or the dissolution of the partnership; (ii) if Tenant
consists of more than one person, an assignment, whether voluntary,
involuntary, or by operation of law, by one person to one of the other persons
that is a Tenant; (iii) if Tenant is a corporation, any dissolution or
reorganization of Tenant, or the sale or other transfer of a controlling
percentage (hereafter defined) of capital stock of Tenant other than to an
affiliate or subsidiary or the sale of more than fifty percent (50%) in value
of the assets of Tenant; (iv) if Tenant is a limited liability company, the
change of members whose interest in the company is more than fifty percent
(50%).  The phrase “controlling
percentage” means the ownership of, and the right to vote, stock possessing
more than fifty percent (50%) of the total combined voting power of all classes
of Tenant’s capital stock issued, outstanding and entitled to vote for the
election of directors, or such lesser percentage as is required to provide
actual control over the affairs of the corporation; except that, if the Tenant
is a publicly traded company, public trades or sales of the Tenant’s stock in
the normal course of business on a national stock exchange shall not be
considered an assignment hereunder even if the aggregate of the trades of sales
exceeds fifty percent (50%) of the capital stock of the company.

18.3.        Permitted
Assignments/Subleases.  Notwithstanding the foregoing, Tenant may
assign this Lease or sublease part or all of the Premises without Landlord’s
consent to: (i) any corporation, limited liability company, or partnership that
controls, is controlled by, or is under common control with, Tenant at the
Commencement Date; or (ii) any corporation or limited liability company
resulting from the merger or consolidation with Tenant or to any entity that
acquires all of Tenant’s assets as a going concern of the business that is
being conducted on the Premises; provided however, the assignor remains liable
under the Lease and the assignee or sublessee is a bona fide entity and assumes
the obligations of Tenant, is as creditworthy as the Tenant, and continues the
same Permitted Use.  Tenant shall give
Landlord notice of all permitted assignments and subleases.

18.4.        Prohibited
Assignments/Subleases.  Notwithstanding any provision in this Lease to
the contrary, Tenant shall not be permitted to assign this Lease or to sublet
all or any part of the Premises to any then current tenant in the Building. In
no event shall this Lease be assignable by operation of any law, and Tenant’s
rights hereunder may not become, and shall not be listed by Tenant as an asset
under any bankruptcy, insolvency or reorganization proceedings.  Acceptance of Rent by Landlord after any non-permitted
assignment or sublease shall not constitute approval thereof by Landlord.

 20
 

18.5.        Limitation on Rights of
Assignee/Sublessee.  Any
assignment or sublease for which Landlord’s consent is required shall not
include the right to exercise any options to renew the Lease Term, expand the
Premises, or similar options, unless specifically provided for in the consent.

18.6.        Tenant Not Released.  No assignment or sublease shall release Tenant
of any of its obligations under this Lease.

18.7.        Landlord’s Right to
Collect Sublease Rents upon Tenant Default.  If the Premises (or any portion) is sublet and
Tenant defaults under its obligations to Landlord, then Landlord is authorized,
at its option, to collect all sublease rents directly from the Sublessee.  Tenant hereby assigns the right to collect the
sublease rents to Landlord in the event of Tenant default.  The collection of sublease rents by Landlord
shall not relieve Tenant of its obligations under this Lease, nor shall it
create a contractual relationship between Sublessee and Landlord or give
Sublessee any greater estate or right to the Premises than contained in its
Sublease.

18.8.        Excess Rents.  [Deleted]

18.9.        Landlord’s Fees.  Tenant shall pay Landlord an administration
fee of $1,000.00 per assignment or sublease transaction for which consent is
required.

18.10.      Unauthorized Assignment or
Sublease.  Any unauthorized
assignment or sublease shall constitute a default under the terms of this
Lease.

18.11.      Limitation.  Notwithstanding anything contained in this
Lease, no proposed assignment or sublease shall provide for a rental or other
payment for the leasing, use, occupancy or utilization of all or any portion of
the Premises based, in whole or in part, on the income or profits derived by
any person from the property so leased, used, occupied or utilized other than
an amount based on a fixed percentage or percentages of gross receipts or
sales.  No proposed assignment of this
Lease or sublease of the Premises shall, in the sole opinion of Landlord, (a)
cause a violation of the Employee Retirement Income Security Act of 1974 or the
regulations promulgated thereunder, as amended from time to time, by such
proposed assignee or subtenant, by Landlord, or by any person which, directly
or indirectly, controls, is controlled by, or is under common control with,
Landlord or any person who controls Landlord or (b) result in Landlord, or any
person which, directly or indirectly, controls Landlord, receiving “unrelated
business taxable income” as defined in the Internal Revenue Code, as amended.

19.           DAMAGES TO PREMISES.

19.1.        Landlord’s Restoration
Obligations.  If the Building
or Premises are damaged by fire or other casualty (“Casualty”), then Landlord
shall repair and restore the Premises to substantially the same condition of
the Premises immediately prior to such Casualty, subject to the following terms
and conditions:

19.1.1.                                       Landlord’s
duty to repair and restore the Premises shall begin as expeditiously as
possible after cessation of such casualty.

19.1.2.                                       Landlord
shall have no obligation to repair and restore Tenant’s trade fixtures, personal
or business property, decorations, signs, contents, or any Non-Standard
Improvements to the Premises except that such Casualty is caused by Landlords
gross negligence.

 21
 

19.2.        Termination of Lease by
Landlord.  Landlord shall have
the option of terminating the Lease if: (i) the Premises is rendered wholly
untenantable. If Landlord elects to terminate this Lease, then it shall give
notice of the cancellation to Tenant within sixty (60) days after the date of
the Casualty.  Tenant shall vacate and
surrender the Premises to Landlord as expeditiously as possible after receipt
of the notice of termination.

19.3.        Termination of Lease by
Tenant.  Tenant shall have the
option of terminating the Lease if: (i) Landlord has failed to substantially
restore the damaged Building or Premises within one hundred eighty (180) days
of the Casualty (“Restoration Period”); (ii) the Restoration Period has not
been delayed by force majeure; and (iii) Tenant
gives Landlord notice of the termination within fifteen (15) days after the end
of the Restoration Period (as extended by any force
majeure delays). If Landlord is delayed by force
majeure, then Landlord must provide Tenant with notice of the delays
within fifteen (15) days of the force majeure
event stating the reason for the delays and a good faith estimate of the length
of the delays.

19.4.        Tenant’s Restoration
Obligations.  Unless
terminated, the Lease shall remain in full force and effect and the proceeds of
all insurance carried by Tenant on its property shall be held in trust by
Tenant for the purposes of such repair, restoration, or replacement.

19.5.        Rent Abatement.  If Premises is rendered wholly untenantable
by the Casualty, then the Rent payable by Tenant shall be fully abated.  If the Premises is only partially damaged,
then Tenant shall continue the operation of Tenant’s business in any part not
damaged to the extent reasonably practicable from the standpoint of prudent
business management, and Rent and other charges shall be abated proportionately
to the portion of the Premises rendered untenantable.  The abatement shall be from the date of the
Casualty until the Premises have been substantially repaired and restored, or
until Tenant’s business operations are restored in the entire Premises,
whichever shall first occur.  However, if
the Casualty is caused by the negligence or other wrongful conduct of Tenant or
of Tenant’s subtenants, licensees, contractors, or invitees, or their
respective agents or employees, there shall be no abatement of Rent.

19.6.        Waiver of Claims.  The abatement of the Rent set forth above is
Tenant’s exclusive remedy against Landlord in the event of a Casualty.  Tenant hereby waives all claims against
Landlord for any compensation or damage for loss of use of the whole or any
part of the Premises and/or for any inconvenience or annoyance occasioned by
any Casualty and any resulting damage, destruction, repair, or restoration.

20.           EMINENT DOMAIN.

20.1.        Effect on Lease.  If all of the Premises are taken under the
power of eminent domain (or by conveyance in lieu thereof), then this Lease
shall terminate as of the date possession is taken by the condemnor, and Rent
shall be adjusted between Landlord and Tenant as of such date.  If only a portion of the Premises is taken
and Tenant can continue use of the remainder, then Tenant shall continue the
operation of Tenant’s business in any part not taken under the power of eminent
domain to the extent reasonably practicable under prudent business management,
and Rent and other charges shall be abated proportionately to the portion of
the Premises rendered untenantable.

20.2.        Right to Condemnation
Award.  Landlord shall be
entitled to receive and retain the entire condemnation award for the taking of
the Building and Premises.  Tenant shall
have no right or claim against Landlord for any part of any award received by
Landlord for the taking.  Tenant shall
have no right or claim for any alleged value of the unexpired portion of this
Lease, or its leasehold estate, or for costs of removal, relocation, business
interruption expense or any other damages arising out of such taking.  Tenant, however, shall not be prevented from
making 

 22
 

a
claim against the condemning party (but not against Landlord) for any moving
expenses, loss of profits, or taking of Tenant’s personal property (other than
its leasehold estate) to which Tenant may be entitled; provided that any such
award shall not reduce the amount of the award otherwise payable to Landlord
for the taking of the Building and Premises.

21.           ENVIRONMENTAL COMPLIANCE.

21.1.        Environmental Laws.  The term “Environmental Laws” shall mean all
now existing or hereafter enacted or issued statutes, laws, rules, ordinances,
orders, permits and regulations of all state, federal, local and other
governmental and regulatory authorities, agencies and bodies applicable to the
Premises, pertaining to environmental matters or regulating, prohibiting or
otherwise having to do with asbestos and all other toxic, radioactive, or
hazardous wastes or materials including, but not limited to, the Federal Clean
Air Act, the Federal Water Pollution Control Act, and the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980, as from time
to time amended.

21.2.        Tenant’s Responsibility.  Tenant covenants and agrees that it will keep
and maintain the Premises at all times in compliance with Environmental
Laws.  Tenant shall not (either with or
without negligence) cause or permit the escape, disposal or release of any
biologically active or other hazardous substances, or materials on the
Property.  Tenant shall not allow the
storage or use of such substances or materials in any manner not sanctioned by
law or in compliance with the highest standards prevailing in the industry for
the storage and use of such substances or materials, nor allow to be brought
onto the Property any such materials or substances except to use in the
ordinary course of Tenant’s business, and then only after notice is given to
Landlord of the identity of such substances or materials.  No such notice shall be required, however,
for commercially reasonable amounts of ordinary office supplies and janitorial
supplies.  Tenant shall execute
affidavits, representations and the like, from time to time, at Landlord’s
request, concerning Tenant’s best knowledge and belief regarding the presence
of hazardous substances or materials on the Premises.  Tenant’s obligations under this Section are
collectively the “Tenant’s Environmental Responsibilities.”

21.3.        Tenant’s Liability.  Tenant shall hold Landlord free, harmless,
and indemnified from any penalty, fine, claim, demand, liability, cost, or
charge whatsoever which Landlord shall incur, or which Landlord would otherwise
incur, by reason of Tenant’s failure to comply with Tenant’s Environmental
Responsibilities, including but not limited to: (i) the cost of full
remediation of any contamination to bring the Property into the same condition
as prior to the Commencement Date and into full compliance with all
Environmental Laws; (ii) the reasonable cost of all appropriate tests and
examinations of the Premises to confirm that the Premises and any other
contaminated areas have been remediated and brought into compliance with all
Environmental Laws; and (iii) the reasonable fees and expenses of Landlord’s
attorneys, engineers, and consultants incurred by Landlord in enforcing and
confirming compliance with Tenant’s Environmental Responsibilities.

21.4.        Limitation on Tenant’s
Liability.  Tenant’s
Environmental Responsibilities shall not apply to any condition or matter
constituting a violation of any Environmental Laws: (i) which existed prior to
the commencement of Tenant’s use or occupancy of the Premises; (ii) which was
not caused, in whole or in part, by Tenant or Tenant’s subtenants or any of
their agents, employees, contract employee, officers, partners, contractors or
invitees; or (iii) to the extent such violation is caused by, or results from
the acts or neglects of Landlord or Landlord’s agents, employees, officers,
partners, contractors, guests, or invitees.

 23
 

21.5.        Inspections by Landlord.  Landlord and its engineers, technicians, and
consultants (collectively the “Auditors”) may, from time to time as Landlord
deems appropriate, conduct periodic tests and examinations (“Audits”) of the
Premises to confirm and monitor Tenant’s Environmental Responsibilities.  Such Audits shall be conducted in such a
manner as to minimize the interference with Tenant’s use of the Premises;
however, in all cases, the Audits shall be of such nature and scope as shall be
reasonably required by then existing technology to confirm Tenant’s compliance
with Tenant’s Environmental Responsibilities. 
Tenant shall fully cooperate with Landlord and its Auditors in the
conduct of such Audits.  The cost of such
Audits shall be paid by Landlord unless an Audit shall disclose a material
failure of Tenant to comply with Tenant’s Environmental Responsibilities, in
which case the cost of such Audit, and the cost of all subsequent Audits made
during the Term and within thirty (30) days thereafter (not to exceed two (2)
such Audits per calendar year), shall be paid by Tenant, on demand.

21.6.        Property.  For the purposes of Tenant’s Environmental
Responsibilities, the term “Property” shall include the Premises, Building, all
Common Areas, the real estate upon which the Building is located; all personal
property (including that owned by Tenant); and the soil, ground water, and
surface water of the real estate upon which the Building is located.

21.7.        Tenant’s Liability After
Termination of Lease.  Tenant’s
indemnity obligations and liability with respect to any of the Tenant’s
Environmental Responsibilities shall survive the expiration or termination of
this Lease, and shall continue for so long as Landlord and its successors and
assigns may be subject to any expense, liability, charge, penalty, or
obligation against which Tenant has agreed to indemnify Landlord.

21.8.        Landlord’s Liability.  Landlord shall hold Tenant free, harmless,
and indemnified from any penalty, fine, claim, demand, liability, cost, or
charge whatsoever which Tenant shall incur, or which Tenant would otherwise
incur, by reason of Landlord’s failure to comply with Landlord’s Environmental
Responsibilities prior to the Commencement Date, including but not limited to:
(i) the cost of full remediation of any contamination and into full compliance
with all Environmental Laws; (ii) the reasonable cost of all appropriate tests
and examinations of the Premises to confirm that the Premises and any other
contaminated areas have been remediated and brought into compliance with all
Environmental Laws; and (iii) if any, the reasonable fees and expenses of
Tenant’s attorneys, engineers, and consultants incurred by Tenant in enforcing
and confirming compliance with Tenant’s Environmental Responsibilities.

22.           MOLD.

22.1.        Presence of Mold.  Tenant acknowledges that (i) mold,
mildew, and similar organisms (collectively “mold”) can grow in almost any
moist location, especially where excessively humid or moist conditions exist,
(ii) some forms of Mold are considered to be toxic or dangerous to human
health, (iii) Mold emits airborne spoors that may be disbursed through the HVAC
system, and (iv) Mold may cause certain individuals to experience allergic
reactions or other medical conditions, including respiratory distress and eye
irritation. The presence and consequences of any Mold in the Premises is
referred to in this Section as “Mold Conditions”.

22.2.        Mold Prevention Practices.
 Tenant agrees, at its own
expense, to do the following for the prevention and control of Mold Conditions
within the Premises (“Mold Prevention Practices”):

22.2.1.     Adopt and enforce good housekeeping
practices and vigilant moisture control within the Premises, and particularly
in kitchen areas, janitorial closets, bathrooms, in and around water fountains
and other plumbing facilities and fixtures, break rooms, in and around outside
walls, and in and around HVAC systems and associated drains;

 24
 

22.2.2.     Regularly monitor the Premises for
the presence of Mold and any conditions that reasonably can be expected to give
rise to or be attributed to Mold including, but not limited to, observed or
suspected instances of water damage, condensation, seepage, leaks, or any other
water collection or penetration (from any source, internal or external), Mold growth
(including mildew), repeated complaints of respiratory ailments or eye
irritation by Tenant’s employees or any other occupants of the Premises, or any
notice from a governmental agency of complaints regarding substandard indoor
air quality at the Premises; and

22.2.3.     Immediately notify Landlord in
writing if Tenant observes, suspects, or has been notified that any Mold
Conditions are present in, at, or about the Premises.

22.3.        Remediation.  If any Mold Conditions are discovered,
Landlord shall have the right to investigate and remediate the Mold Conditions
and to impose additional Mold Prevention Practices on the Tenant at Tenant’s
expense.  However, provided Tenant is in
compliance with 22.2 then all remediation will be at Landlords expense.

22.4.        Tenant Indemnity.  Tenant shall indemnify and hold
Landlord harmless from any and all liability, claims or damages incurred by
Landlord in connection with any Mold Conditions, including without limitation
any third party claims and all costs incurred by Landlord to investigate and
remediate any Mold Conditions, unless caused or contributed to by Landlords
negligence.

22.5.        Release.
[Deleted]

22.6.        Survival.  The Tenant’s indemnity obligations
and release with respect to Mold Conditions shall survive the expiration or
earlier termination of this Lease.

23.           DEFAULT.

23.1.        Tenant’s Default .
Tenant shall be in default under this Lease if Tenant:

23.1.1.                                       Fails
to pay when due any (subject to any applicable Grace Period) Base Rent,
Additional Rent, or any other sum of money which Tenant is obligated to pay, as
provided in this Lease;

23.1.2.                                       Breaches
any other agreement, covenant or obligation in this Lease and such breach is
not remedied within Thirty (30) days after Landlord gives Tenant notice
specifying the breach, or if such breach cannot, with due diligence, be cured
within Thirty (30) days, Tenant does not commence curing within Thirty (30)
days and with reasonable diligence completely cure the breach within a
reasonable period of time after the notice;

23.1.3.                                       Files
any petition or action for relief under any creditor’s law (including
bankruptcy, reorganization, or similar action), either in state or federal
court, or has such a petition or action filed against it which is not stayed or
vacated within sixty (60) days after filing; or

 25
 

23.1.4.                                       Makes
any transfer in fraud of creditors as defined in Section 548 of the United
States Bankruptcy Code (11 U.S.C. 548, as amended or replaced), has a receiver
appointed for its assets (and the appointment is not stayed or vacated within
thirty (30) days), or makes an assignment for benefit of creditors.

23.2.        Landlord’s Remedies.  In the event of a Tenant default, Landlord at
its option may do one or more of the following:

23.2.1.                                       Terminate
this Lease and recover all damages caused by Tenant’s breach, including
consequential damages for lost future rent that would have been due from
Tenant;

23.2.2.                                       Repossess
the Premises, after terminating, and relet the Premises at the then applicable
market rates;

23.2.3.                                       Bring
action for recovery of all amounts due from Tenant; or

23.2.4.                                       Pursue
any other remedy available in law or equity.

23.3.        Landlord’s Expenses;
Attorneys Fees.  All
reasonable expenses of Landlord in repairing, restoring, or altering the
Premises for re-letting as general office or basic research space, together
with leasing fees and all other expenses in seeking and obtaining a new Tenant,
shall be charged to and be a liability of Tenant.  Landlord’s reasonable attorneys’ fees in
pursuing any of the foregoing remedies, or in collecting any Rent or Additional
Rent due by Tenant hereunder, shall be paid by Tenant. Landlord shall use
reasonable efforts to mitigate its damages.

23.4.        Should any re-letting result in Landlord receiving
rents in access to the amounts payable under this lease then such amounts shall
be offset against the provisions of this clause.

23.5.        Remedies Cumulative.  All rights and remedies of Landlord are
cumulative, and the exercise of any one shall not be an election excluding
Landlord at any other time from exercise of a different or inconsistent
remedy.  No exercise by Landlord of any
right or remedy granted herein shall constitute or effect a termination of this
Lease unless Landlord shall so elect by notice delivered to Tenant.  The failure of Landlord to exercise its
rights in connection with this Lease or any breach or violation of any term, or
any subsequent breach of the same or any other term, covenant or condition
shall not be a waiver of such term, covenant or condition or any subsequent breach
of the same or any other covenant or condition.

23.6.        No Accord and
Satisfaction.  No acceptance
by Landlord of a lesser sum than the Rent and other sums then due shall be
deemed to be other than on account of the earliest installment of such payments
due, nor shall any endorsement or statement on any check or any letter
accompanying any check or payment be deemed as 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.

23.7.        No Reinstatement.  No payment of money by Tenant to Landlord
after the expiration or termination of this Lease shall reinstate or extend the
Term, or make ineffective any notice of termination given to Tenant prior to
the payment of such money.  After the
service of notice or the commencement of a suit, or after final judgment
granting Landlord possession of the Premises, Landlord may receive and collect
any sums due under this Lease, and the payment thereof shall not make
ineffective any notice or in any manner affect any pending suit or any judgment
previously obtained.

 26

 

23.8.        Summary Ejectment.  Tenant agrees that in addition to all other
rights and remedies, Landlord may obtain an order for summary ejectment from
any court of competent jurisdiction without prejudice to Landlord’s rights to
otherwise collect rents or breach of contract damages from Tenant.

23.9.        Landlord’s Default.  Landlord shall be in default under this Lease
if Landlord breaches any agreement, covenant or obligation in this Lease and
such breach is not remedied within fifteen (15) days after Tenant gives
Landlord written notice specifying the breach, or if such breach cannot, with
due diligence, be cured within fifteen (15) days, Landlord does not commence
curing within fifteen (15) days and with reasonable diligence completely cure
the breach within a reasonable period of time after the notice.

23.10.      Tenant’s Remedies.  In the event of a Landlord default, Tenant
may, in addition to any remedies available to it at law, cure the default on
behalf of Landlord, and the reasonable costs of such cure shall be paid to
Tenant by Landlord upon written demand

24.           MULTIPLE DEFAULTS.

24.1.        Effect on Notice Rights
and Cure Periods.  Except in
the case of late payment of Rent, including Additional Rent, should Tenant
default under this Lease on two (2) or more occasions during any twelve (12)
month period, in addition to all other remedies available to Landlord, any
notice requirements or cure periods otherwise set forth in this Lease with
respect to a default by Tenant shall not apply.

25.           BANKRUPTCY.

25.1.        Trustee’s Rights.  Landlord and Tenant understand that,
notwithstanding contrary terms in this Lease, a trustee or debtor in possession
under the United States Bankruptcy Code, as amended, (the “Code”) may have
certain rights to assume or assign this Lease. 
This Lease shall not be construed to give the trustee or debtor in
possession any rights greater than the minimum rights granted under the Code.

25.2.        Adequate Assurance.  Landlord and Tenant acknowledge that, pursuant
to the Code, Landlord is entitled to adequate assurances of future performance
of the provisions of this Lease.

25.3.        Assumption of Lease
Obligations.  Any proposed
assignee of this Lease must assume and agree to be personally bound by the
provisions of this Lease.

26.           NOTICES.

26.1.        Addresses.  All notices, demands and requests by Landlord
or Tenant shall be sent to the Notice Addresses set forth in Section 1.1, or to
such other address as a party may specify by duly given notice.

26.2.        Form; Delivery; Receipt.  ALL NOTICES, DEMANDS AND
REQUESTS WHICH MAY BE GIVEN OR WHICH ARE REQUIRED TO BE GIVEN BY EITHER PARTY
TO THE OTHER MUST BE IN WRITING UNLESS OTHERWISE SPECIFIED.  Notices, demands or requests shall be deemed
to have been properly given for all purposes if (i) delivered against a written
receipt of delivery, (ii) mailed by express, registered or certified mail of
the United States Postal Service, return receipt requested, postage prepaid, or
(iii) delivered to 

 27
 

a
nationally recognized overnight courier service for next business day delivery to
the receiving party’s address as set forth above.  Each such notice, demand or request shall be
deemed to have been received upon the earlier of the actual receipt or refusal
by the addressee or three (3) business days after deposit thereof at any main or
branch United States post office if sent in accordance with subsection (ii)
above, and the next business day after deposit thereof with the courier if sent
pursuant to subsection (iii) above.

26.3.        Address Changes.  The parties shall notify the other of any
change in address, which notification must be at least fifteen (15) days in
advance of it being effective.

26.4.        Notice by Legal Counsel.  Notices may be given on behalf of any party by
such party’s legal counsel.

27.           HOLDING OVER.  If Tenant holds over after the Expiration
Date or other termination of this Lease, such holding over shall not be a
renewal of this Lease but shall create a tenancy-at-sufferance.  Tenant shall continue to be bound by all of
the terms and conditions of this Lease, except that during such tenancy-at-sufferance
Tenant shall pay to Landlord (i) Base Rent at the rate equal to one hundred and
ten percent (110%) of that provided for as of the expiration or termination
date, and (ii) any and all Operating Expenses and other forms of Additional
Rent payable under this Lease.  The
increased Rent during such holding over is intended to compensate Landlord
partially for losses, damages and expenses, including frustrating and delaying
Landlord’s ability to secure a replacement tenant. If Landlord loses a
prospective tenant because Tenant fails to vacate the Premises on the
Expiration Date or any termination of the Lease after notice to do so, then
Tenant will be liable for such damages as Landlord can prove because of Tenant’s
wrongful failure to vacate. In the case that the Tenant has given Landlord 60
days prior written notice of a Hold Over and the Landlord agrees to such Hold
Over then the damages and increased Rent of this section shall not apply.

28.           RIGHT TO RELOCATE.  [Deleted.]

29.           BROKER’S COMMISSIONS.

29.1.        Broker.  Each party represents and warrants to the
other that it has not dealt with any real estate broker, finder or other person
with respect to this Lease in any manner, except the Brokers identified in
Section 1.1.

29.2.        Landlord’s Obligation.  Landlord shall pay any commissions or fees
that are payable to the Brokers with respect to this Lease pursuant to Landlord’s
separate agreement with the Brokers.

29.3.        Indemnity.  Each party shall indemnify and hold the other
party harmless from any and all damages resulting from claims that may be
asserted against the other party by any broker, finder or other person
(including, without limitation, any substitute or replacement broker claiming
to have been engaged by indemnifying party in the future) other than the
Brokers identified in Section 1.1 claiming to have dealt with the indemnifying
party in connection with this Lease or any amendment or extension hereto, or
which may result in Tenant leasing other or enlarged space from Landlord.  The provisions of this Section shall survive
the termination of this Lease.

 28
 

30.           MISCELLANEOUS.

30.1.        No Agency.  Tenant is not, may not become, and shall never
represent itself to be an agent of Landlord, and Tenant acknowledges that
Landlord’s title to the Building is paramount, and that it can do nothing to
affect or impair Landlord’s title.

30.2.        Force Majeure.  Landlord
shall be excused for the period of any delay and shall not be deemed in default
with respect to the performance of any of the terms, covenants and conditions
of this Lease when prevented from so doing by force majeure.  The term “force
majeure” means:  fire, flood,
extreme weather, labor disputes, strike, lock-out, riot, acts or threats of
terrorism, government interference (including regulation, appropriation or
rationing), unusual delay in governmental permitting, unusual delay in
deliveries or unavailability of materials, unavoidable casualties, Act of God,
or other causes beyond the Landlord’s reasonable control.

30.3.        Limitation on Damages.  Notwithstanding any other provisions in this
Lease, Landlord shall not be liable to Tenant for any special, consequential,
incidental or punitive damages.

30.4.        Satisfaction of Judgments
Against Landlord  [Deleted].

30.5.        Interest.  [Deleted].

30.6.        Legal Costs.  Should either party prevail in any legal
proceedings against the other for breach of any provision in this Lease, then
non-prevailing party shall be liable for the costs and expenses of the
prevailing party, including its reasonable attorneys’ fees (at all tribunal
levels).

30.7.        Sale of Premises or
Building.  Landlord may sell
the Building without affecting the obligations of Tenant hereunder; upon the
sale of the Building, Landlord shall be relieved of all responsibility for the
Premises and shall be released from any liability thereafter accruing under
this Lease.

30.8.        Time of the Essence.  Time is of the essence in the performance of
all obligations under the terms of this Lease

30.9.        Transfer of Payments.  If Tenant has paid any Security Deposit or
prepaid any Rent, Landlord may transfer the Security Deposit or prepaid Rent to
Landlord’s successor and upon such transfer, Landlord shall be released from
any liability for return of the Security Deposit or prepaid Rent.

30.10.      Tender of Premises.  The delivery of a key or other such tender of
possession of the Premises to Landlord or to an employee of Landlord shall not
operate as a termination of this Lease or a surrender of the Premises unless
requested in writing by Landlord.

30.11.      Tenant’s Financial
Statements.  Upon request of
Landlord, Tenant agrees to furnish to Landlord copies of Tenant’s most recent
annual, quarterly and monthly financial statements, audited if available.  The financial statements shall be prepared in
accordance with generally accepted accounting principles, consistently
applied.  The financial statements shall
include a balance sheet and a statement of profit and loss, and the annual
financial statement shall also include a statement of changes in financial
position and appropriate explanatory notes. 
Landlord may deliver the financial statements to any prospective or
existing mortgagee or purchaser of the Building.

 29
 

30.12.      Recordation.  This Lease may not be recorded without
Landlord’s prior written consent. 
Landlord, upon request of Tenant, agrees to execute a memorandum of this
Lease in recordable form, and Tenant may record such memorandum at its
cost.  The form of the memorandum shall
be subject to Landlord’s reasonable approval.

30.13.      Partial Invalidity.  The invalidity of any portion of
this Lease shall not invalidate the remaining portions of the Lease.

30.14.      Binding Effect.  This Lease shall be binding upon
the respective parties hereto, and upon their heirs, executors, successors and
assigns.

30.15.      Entire Agreement.  This Lease supersedes and cancels
all prior negotiations between the parties, and no changes shall be effective
unless in writing signed by both parties. 
Tenant acknowledges and agrees that it has not relied upon any
statements, representations, agreements or warranties except those expressed in
this Lease, and that this Lease contains the entire agreement of the parties
hereto with respect to the subject matter hereof.

30.16.      Good Standing.  If requested by Landlord, Tenant
shall furnish appropriate legal documentation evidencing the valid existence in
good standing of Tenant, and the authority of any person signing this Lease to
act for the Tenant.  If Tenant signs as a
corporation, each of the persons executing this Lease on behalf of Tenant does
hereby covenant and warrant that Tenant is a duly authorized and existing
corporation, that Tenant has and is qualified to do business in the State in
which the Premises are located, that the corporation has a full right and
authority to enter into this Lease and that each of the persons signing on
behalf of the corporation is authorized to do so.  If Tenant is a corporation, partnership or
other entity, each of the persons signing on behalf of Tenant warrants that all
consents or approvals required of any parties (including but not limited to its
Board of Directors or partners) for the execution, delivery and performance of
this Lease have been obtained and that Tenant has the right and authority to
enter into and perform its covenants contained in this Lease.

30.17.      Terminology.  The singular shall include the
plural, and the masculine, feminine or neuter includes the other.

30.18.      Headings.  Headings of sections are for
convenience only and shall not be considered in construing the meaning of the
contents of such section.

30.19.      Choice of Law.  This Lease shall be interpreted
and enforced in accordance with the laws of Maryland.

30.20.      Execution.  The submission of this Lease to
Tenant for review does not constitute a reservation of or option for the
Premises, and this Lease shall become effective as a contract only upon the
execution and delivery by both Landlord and Tenant.

30.21.      Approval by Lender and
United States Economic Development Agency. 
Tenant acknowledges that the financing on the Property has not been
concluded and that Lender and or EDA may require material changes in the Lease
before making a Loan Commitment or granting necessary approval. If
changes are required by Lender or EDA, Tenant agrees to work in good faith with
the Landlord to make necessary modifications in this Lease.

31.           ADDENDA AND EXHIBITS.  The addenda and exhibits listed
below are incorporated into this Lease.

31.1.        Lease Addendum #1 — “Workletter”

 30
 

31.2.        Exhibit A — Building and Premises

31.3.        Exhibit B — Rules and Regulations

31.4.        Exhibit C — Janitorial Specifications

31.5.        Exhibit D — Monthly Rents and Expiration Date

31.6.        Exhibit E — Annual Anticipated Property Tax and Insurance Table

31.7.        Exhibit F — Common Area

31.8.        Exhibit G— Business Support Area

31.9.        Exhibit H — Building Standard Improvements

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IN
WITNESS WHEREOF, Landlord and Tenant have executed this Lease as of the
Effective Date.

	
  

  	
   

  	
  LANDLORD:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ALLEGANY RESEARCH PROPETIES, LLC

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  Executed by Carl Belt, Jr

  
	
   

  	
   

  	
  Name:

  	
   

  	
  Dated 020607

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 
STATE OF MARYLAND             )
                          _____________    )  TO WIT:
COUNTY/CITY OF _________    )
       I HEREBY CERTIFY that on this __th day of ______________, 2006, before me, the subscriber, a Notary Public of the State of Maryland and County/City of ________________, personally appeared before me _________________, _____________________________, of Allegany Research Properties, LLC, and
acknowledged the foregoing Lease to be the act and deed of said Limited Liability Company.
       WITNESS my hand and notarial seal.

	
  

  	
   

  	
   

  
	
   

  	
   

  	
  Notary Public

  
	
  My Commission
  Expires ______________________.

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TENANT:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  INFOSPHERIX INCORPORATED

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  Executed by Richard Levin

  
	
   

  	
   

  	
  Name:

  	
   

  	
  Dated 020607

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 
STATE OF MARYLAND             )
                          _____________    )  TO WIT:
COUNTY/CITY OF _________    )
I HEREBY CERTIFY that on this __th day of ______________, 2006, before me, the subscriber, a Notary Public of the State of Maryland and County/City of ________________, personally appeared before me _________________, _____________________________, of InfoSpherix Incorporated, and acknowledged the foregoing Lease to be the act and deed of said corporation
       WITNESS my hand and notarial seal.

	
  

  	
   

  	
   

  
	
   

  	
   

  	
  Notary Public

  
	
  My Commission
  Expires ______________________.

  	
   

  	
   

  	
   

  	
   

  

 

 32

 

LEASE ADDENDUM #1

WORKLETTER

This Lease Addendum #1 (the “First Addendum”
or “Workletter”) sets forth the rights and obligations of Landlord and Tenant
with respect to space planning and preparing final construction drawings, and
the construction and installation of any improvements to the Premises (not
included in the base Building finishes) to be completed before the Commencement
Date (“Tenant Improvements”).

Landlord and Tenant mutually agree to the
following:

1.     Allowance.  Landlord agrees to provide Tenant with the
allowance identified in Section 1.1 of the Lease (“Allowance”) to design, and
construct the Tenant Improvements.  Tenant shall be fully responsible for all
Tenant Improvement costs that exceed the Allowance.

2.     Base Building.  Landlord’s
base Building finishes (“Base Building Finishes”) will consist of:

a.     An energy efficient HVAC
system similar to those associated with typical Class A buildings in the
region,

b.     One (1) VAV per 1,000
square feet wired with DDC controls,

c.     Six (6) watts/square foot
low voltage throughout the space,

d.     Parabolic lights at one per
80 square feet,

e.     Reveal edge tiles and
ceiling grid.

Tenant may elect not to receive the Landlord’s Base Building Finishes
in the Premises, in which case the cost of such finishes will be added to the
Allowance.

3.     Plans.

a.     On Tenant’s behalf,
Landlord shall select architects and engineers (collectively “Architect”), who
will do the following at Tenant’s expense (which expense shall be deducted from
the Allowance):

i.              Attend
a reasonable number of meetings with Tenant and Landlord’s agent to define
Tenant’s requirements for the Tenant Improvements.

ii.             Provide
a space plan (“Space Plan”) for Tenant’s review and approval.

iii.            Complete
construction drawings for Tenant’s partition layout, reflected ceiling grid,
telephone and electrical outlets, keying, and finish schedule (“Construction
Drawings”) based on the Space Plan.

 33
 

iv.            Complete
building standard mechanical plans where necessary (for installation of air
conditioning system and duct work, and heating and electrical facilities) for
the work to be done in the Premises (“Mechanical Drawings”) (the Space Plan,
Construction Drawings and Mechanical Drawings are collectively referred to as
the “Plans”).

b.     Tenant
shall review and provide comments to or approve the Space Plan, in writing,
within five (5) business days after receipt. 
Any Tenant delay in reviewing the Space Plan shall not delay the
Commencement Date under the Lease.

c.     Tenant
also review and provide comments or approve the Construction Drawings and
Mechanical Drawings within five (5) business days after receipt.  Failure to provide any comments to the
Construction Drawings or Mechanical Drawings within five (5) business days
after receipt shall constitute Tenant’s approval of such Construction Drawings
or Mechanical Drawings.

d.     All
Plans (and any modifications to the Plans) shall be subject to Landlord’s prior
written approval.  Landlord agrees that
it will not unreasonably withhold its approval of the Plans, or modifications
to the Plans; provided, however, Landlord shall have sole and absolute
discretion to approve or disapprove any Tenant Improvements that will be
visible to the exterior of the Premises, or which may affect the structural
integrity of the Building.  Any approval
of the Plans by Landlord shall not constitute approval of any delays caused by
Tenant and shall not be deemed a waiver of any rights or remedies that may
arise as a result of such delays. 
Landlord may condition its approval of the Plans on Tenant paying rent
prior to completion of the Tenant Improvements if the Plans require special
design elements or materials that would cause Landlord to deliver possession of
the Premises to Tenant after the scheduled Commencement Date.

4.     Tenant Responsibility for
Plans and Plan Delivery Date.

a.     Tenant acknowledges
that the Architect is acting on behalf of the Tenant with respect to the Plans
for the Tenant Improvements, and that Tenant (not Landlord) is responsible for
the content of the Plans and the timely completion of the Plans.

b.     Tenant covenants and
agrees to deliver to Landlord final Plans approved by Tenant on or before the
Tenant Plan Delivery Date identified in Section 1.1 of the Lease.  Time is of the essence in the delivery of the
final Plans.  It is vital that the final
Plans be delivered to Landlord by the Tenant Plan Delivery Date in order to
allow Landlord sufficient time to review such Plans, to discuss with Tenant any
changes therein which Landlord believes to be necessary or desirable, to enable
the Contractor to prepare an estimate of the cost of the Tenant Improvements,
to obtain required permits, and to substantially complete the Tenant
Improvements within the time frame provided in the Lease.

5.     Construction of Tenant
Improvements.  On Tenant’s
behalf, Landlord shall select a licensed general contractor or contractors (the
“Contractor”) to construct and install the Tenant Improvements in accordance
with the Plans (the “Work”) at Tenant’s expense (which expense shall be
deducted from the Allowance).  The
Contractor shall be subject to the reasonable approval of the Tenant.  Landlord shall coordinate and facilitate all
communications between Tenant and the Contractor.

 34
 

a.     Prior to commencing
Work, Landlord shall submit to Tenant in writing the cost of the Work, which
shall include (i) the Contractor’s cost for completing the Work (including the
Contractor’s general conditions, overhead and profit) and (ii) a Construction
Supervision Fee in the amount set forth in Section 1.1 of the Lease to be paid
to Landlord to manage and oversee the work to be done on Tenant’s behalf.  Tenant shall have five (5) business days to
review and approve the cost of the Work. 
Landlord shall not authorize the Contractor to proceed with the work
until the cost is mutually agreed upon and approved in writing and delivered to
Landlord.

b.     Any changes in the
approved cost of the Work shall be by written change order signed by the
Tenant.  Tenant agrees to process change
orders in a timely fashion.  Tenant
acknowledges that the following items may result in change orders:

i.              Municipal
or other governmental inspectors that require changes to the Premises such as
additional exit lights, fire damper or whatever other changes they may
require.  In such event, Landlord will
notify the Tenant of the required changes, but the cost of such changes and any
delay associated with such changes shall be the responsibility of the Tenant.

ii.             Tenant
makes changes to the Plans or requests additional work.  Tenant will be notified of the cost and any
delays that would result from the change by a change order signed by Tenant
before the changes are implemented.

iii.            Any
errors or omissions in the Plans or specifications which require changes.  Landlord will notify the Tenant of the
required changes, but the cost of such changes and any delay associated with
such changes shall be the responsibility of the Tenant.

iv.            Materials
are not readily available, require quick ship charges, or require substitution.

v.             The Tenant
Improvement schedule requires Express Review to get permits, which will
increase the costs of the permitting process.

6.     Signage and Keys.  Landlord shall provide the following in
accordance with building standards at Tenant’s Expense (which expense may be
deducted from the Allowance): (i) door and directory signage; (ii) two (2) keys
to entrance door; and (iii) enough access cards to accommodate Tenant and
Tenant’s employees on the Commencement Date. 
Additional access cards will be charged to Tenant, whether for new
employees or for loss or replacement. 
Access cards are $25.00 each and subject to increase based on cost.

7.     Commencement Date.

a.     The
Commencement Date shall be the date when the Work has been substantially
completed (excluding items of work and adjustment of equipment and fixtures
that can be completed after the Premises are occupied without causing material
interference with Tenant’s use of the Premises — i.e., “punch list items”), and
the Landlord delivers possession of the Premises to Tenant in accordance with
the terms of the Lease.

b.     Notwithstanding the
foregoing, if Landlord shall be delayed in delivering possession of the
Premises as a result of:

 35
 

i.              Tenant’s
failure to approve the Space Plan within the time specified;

ii.              Tenant’s
failure to furnish to Landlord the final Plans on or before the Tenant Plan
Delivery Date;

iii.            Tenant’s
failure to approve Landlord’s cost estimates within the time specified;

iv.            Tenant’s
failure to timely respond to change orders;

v.             Tenant’s
request for changes in or modifications to the Plans subsequent to the Tenant
Plan Delivery Date (regardless whether such requests are approved or
implemented);

vi.            Tenant’s
changes in the Plans or Work (notwithstanding Landlord’s approval of any such
changes);

vii.           Inability to
obtain materials, finishes or installations requested by Tenant that are not
part of the Building Standard Improvements;

viii.          The
performance of any work by any person, firm or corporation employed or retained
by Tenant; or

ix.            Any other
act or omission by Tenant or its agents, representatives, and/or employees;

then, in any such event, for purposes of
determining the Commencement Date, the Premises shall be deemed to have been
delivered to Tenant on the date that the Architect determines that the Premises
would have been substantially completed and ready for delivery if such delay or
delays had not occurred.

8.     Tenant Improvement
Expenses in Excess of the Allowance.  Tenant agrees to pay to Landlord all costs
and expenses incurred in connection with the Tenant Improvements in excess of
the Allowance within ten (10) days after receipt of Landlord’s invoice.

9.     Warranties.

a.     Landlord shall
select a Contractor who will agree (i) that all Work shall be performed in a
good and workmanlike manner and in accordance with all applicable laws and
regulations and with the final approved Plans, and (ii) to provide Tenant a
one-year warranty from the date of delivery of the Premises, transferable to
Tenant, for defective workmanship and materials.

b.     All manufacturers’
and builders’ warranties with respect to the Work shall be issued to or
transferred to Tenant, without recourse to the Landlord.

c.     Landlord shall not
be liable to Tenant for any defects in the Plans or construction of the Tenant
Improvements.

 36
 

d.     Tenant shall repair
or correct any defective work or materials installed by Tenant or any person,
firm or corporation employed or retained by Tenant, or any work or materials
that prove defective as a result of any act or omission of Tenant or any of its
employees, agents, invitees, licensees, subtenants, customers, clients, or
guests.

10.   Inspection of Premises;
Possession by Tenant. 
Prior to taking possession of the Premises, Tenant and Landlord shall
inspect the Premises and Tenant shall give Landlord notice of any defects or
incomplete work (“Punchlist”).  Tenant’s
possession of the Premises constitutes acknowledgment by Tenant that the
Premises are in good condition, as can be reasonably inspected, and that all
work and materials provided by Contractor are satisfactory as of such date of
occupancy, except as to (i) any defects or incomplete work set forth in the
Punchlist, (ii) latent defects, and (iii) any equipment that is used seasonally
if Tenant takes possession of the Premises during a season when such equipment
is not in use.

11.   Access During
Construction.  During
construction of the Tenant Improvements and with prior approval of Landlord,
Tenant shall be permitted reasonable access to the Premises for the purposes of
taking measurements, making plans, installing trade fixtures, and doing such
other work as may be appropriate or desirable to enable Tenant to assume
possession of and operate in the Premises; provided, however, that such access
does not interfere with or delay construction work on the Premises and does not
include moving furniture or similar items into the Premises. Prior to any such
entry, Tenant shall comply with all insurance provisions of the Lease.  All waiver and indemnity provisions of the
Lease shall apply upon Tenant’s entry of the Premises.

 37

 

EXHIBIT A

BUILDING
AND PREMISES

Exhibit A
Premises Page 1

Exhibit A
Premises Page 2

 38
 

Exhibit A
Page 3 Building and Grounds

 

 39

 

EXHIBIT B

RULES AND REGULATIONS

1.               Access to Building. 
On Saturdays, Sundays, Holidays and weekdays between the hours of 6:00
P.M. and 7:00 A.M., access to the Building and/or to the halls, corridors,
elevators or stairways in the Building may be restricted and access shall be
gained by use of a key or electronic card to the outside doors of the
Buildings.  Landlord may from time to
time establish security controls for the purpose of regulating access to the
Building.  Tenant shall be responsible
for providing access to the Premises for its agents, employees, contract
employees, invitees and guests at times access is restricted, and shall comply
with all such security regulations so established.

2.               Protecting Premises. 
The last member of Tenant to leave the Premises shall close and securely
lock all doors or other means of entry to the Premises and shut off all lights
and equipment in the Premises.

3.               Building Directories. 
The directories for the Building in the form selected by Landlord shall
be used exclusively for the display of the name and location of tenants.  Any additional names and/or name change
requested by Tenant to be displayed in the directories must be approved by
Landlord and, if approved, will be provided at the sole expense of Tenant.

4.               Large Articles. 
Furniture, freight and other large or heavy articles may be brought into
the Building only at times and in the manner designated by Landlord and always
at Tenant’s sole responsibility.  All
damage done to the Building, its furnishings, fixtures or equipment by moving
or maintaining such furniture, freight or articles shall be repaired at Tenant’s
expense.

5.               Signs.  Except as
permitted by Section 10 of the attached Lease, Tenant shall not paint, display,
inscribe, maintain or affix any sign, placard, picture, advertisement, name,
notice, lettering or direction on any part of the outside or inside of the
Building, or on any part of the inside of the Premises which can be seen from
the outside of the Premises, including windows and doors, without the written
consent of Landlord, and then only such name or names or matter and in such
color, size, style, character and material as shall be first approved by
Landlord in writing.  Landlord, without
notice to Tenant, reserves the right to remove, at Tenant’s expense, all
matters other than that provided for above.

6.               Compliance with Laws. 
Tenant shall comply with all applicable laws, ordinances, governmental
orders or regulations and applicable orders or directions from any public
office or body having jurisdiction, whether now existing or hereinafter enacted
with respect to the Premises and the use or occupancy thereof.  Tenant shall not make or permit any use of
the Premises which directly or indirectly is forbidden by law, ordinance,
governmental regulations or order or direction of applicable public authority,
which may be dangerous to persons or property or which may constitute a
nuisance to other tenants.

7.               Hazardous Materials. 
Tenant shall not use or permit to be brought into the Premises or the
Building any flammable oils or fluids, or any explosive or other articles
deemed hazardous to persons or property, or do or permit to be done any act or
thing which will invalidate, or which, if brought in, would be in conflict with
any insurance policy covering the Building or its operation, or the Premises,
or any part of either, and will not 

 40
 

                                do or permit to be done anything in or
upon the Premises, or bring or keep anything therein, which shall not comply
with all rules, orders, regulations or requirements of any organization,
bureau, department or body having jurisdiction with respect thereto (and Tenant
shall at all times comply with all such rules, orders, regulations or
requirements), or which shall increase the rate of insurance on the Building,
its appurtenances, contents or operation.

8.               Defacing Premises and Overloading.  Tenant shall not place anything or allow
anything to be placed in the Premises near the glass of any door, partition,
wall or window that may be unsightly from outside the Premises.  Tenant shall not do any painting or
decorating in the Premises or install any floor cover­ings in the Premises or
make, paint, cut or drill into, or in any way deface any part of the Premises
or Building without in each instance obtaining the prior written consent of
Landlord.  Tenant shall not overload any
floor or part thereof in the Premises, or any facility in the Building or any
public corridors or elevators therein by bringing in or removing any large or
heavy articles and Landlord may direct and control the location of safes,
files, and all other heavy articles and, if considered necessary by Landlord
may require Tenant at its expense to supply whatever supplementary supports
necessary to properly distribute the weight.

9.               Obstruction of Public Areas. 
Tenant shall not, whether temporarily or otherwise, allow anything to
remain in, place or store anything in, or obstruct in any way, any sidewalk,
court, hall, passageway, entrance, or shipping area.  Tenant shall lend its full cooperation to keep
such areas free from all obstruction and in a clean and sightly condition, and
move all supplies, furniture and equipment as soon as received directly to the
Premises, and shall move all such items and waste (other than waste customarily
removed by Building employees) that are at any time being taken from the
Premises directly to the areas designated for disposal.  All courts, passageways, entrances, exits,
elevators, escalators, stairways, corridors, halls and roofs are not for the
use of the general public and Landlord shall in all cases retain the right to
control and prevent access thereto by all persons whose presence, in the
judgment of Landlord, shall be prejudicial to the safety, character, reputation
and interest of the Building and its tenants; provided, however, that nothing
herein contained shall be construed to prevent such access to persons with whom
Tenant deals within the normal course of Tenant’s business so long as such
persons are not engaged in illegal activities.

10.         Additional Locks. 
Tenant shall not attach, or permit to be attached, additional locks or
similar devices to any door or window, change existing locks or the mechanism
thereof, or make or permit to be made any keys for any door other than those
provided by Landlord.  Upon termination
of this Lease or of Tenant’s posses­sion, Tenant shall immediately surrender
all keys to the Premises.

11.         Communications or Utility Connections.  If Tenant desires signal, alarm or other
utility or similar service connections installed or changed, then Tenant shall
not install or change the same without the approval of Landlord, and then only
under direction of Landlord and at Tenant’s expense.  Tenant shall not install in the Premises any
equipment which requires a greater than normal amount of electrical current for
the permitted use without the advance written consent of Landlord.  Tenant shall ascertain from Landlord the
maximum amount of load or demand for or use of electrical current which can
safely be permitted in the Premises, taking into account the capacity of the
electric wiring in the Building and the Premises and the needs of other tenants
in the Building, and Tenant shall not in any event connect a greater load than
that which is safe.

 41
 

12.         Office of the Building. 
Service requirements of Tenant will be attended to only upon application
at the office of the Property Manager. 
Employees of Landlord shall not perform, and Tenant shall not engage
them to do any work outside of their duties unless specifically authorized by
Landlord.

13.         Restrooms.  The
restrooms, toilets, urinals, vanities and the other apparatus shall not be used
for any purpose other than that for which they were constructed, and no foreign
substance of any kind whatsoever shall be thrown therein.  The expense of any breakage, stoppage or
damage resulting from the violation of this rule shall be borne by the Tenant
whom, or whose employees or invitees, shall have caused it.

14.         Intoxication. 
Landlord reserves the right to exclude or expel from the Building any
person who, in the judgment of Landlord, is intoxicated, or under the influence
of liquor or drugs, or who in any way violates any of the Rules and Regulations
of the Building.

15.         Nuisances and Certain Other Prohibited Uses.  Tenant shall not (a) install or operate any
internal combus­tion engine, boiler, machinery, refrigerating, heating or air
conditioning apparatus in or about the Premises; (b) engage in any mechanical
business, or in any service in or about the Premises or Building, except those
ordinarily embraced within the Permitted Use; (c) use the Premises for housing,
lodging, or sleep­ing purposes; (d) Place a musical or sound producing
instrument or device inside or outside the Premises which may be heard outside
the Premises; (e) use any power source for the operation of any equipment or
device other than batteries or electricity; (f) operate any electrical device
from which may emanate waves that could interfere with or impair radio or
television broadcasting or reception from or in the Building or elsewhere; (g)
bring or permit to be in the Building any bicycle, other vehicle, dog (except
in the company of a blind person), other animal or bird; (h) make or permit any
objectionable noise or odor to emanate from the Premises; (i) disturb, harass,
solicit or canvass any occupant of the Building; (j) do anything in or about
the Premises which could be a nuisance or tend to injure the reputation of the
Building; (k) allow any firearms in the Building or the Premises.

16.         Solicitation. 
Deleted.

17.         Energy Conservation. 
Tenant shall not waste electricity, water, heat or air conditioning and
agrees to cooperate fully with Landlord to insure the most effective operation
of the Building’s heating and air conditioning, and shall not allow the
adjustment (except by Landlord’s authorized Building personnel) of any
controls.

18.         Building Security.  At
all times other than Normal Building Operating Hours the exterior Building
doors and suite entry door(s) must be kept locked to assist in security.  Problems in Building and suite security
should be directed to the Property Manager.

19.         Parking.  Parking is
in designated parking areas only.  There
shall be no vehicles in “no parking” zones or at curbs.  Handicapped spaces are for handicapped
persons only and the Police Department will ticket unauthor­ized (unidentified)
cars in handicapped spaces.  Landlord
reserves the right to remove vehicles that do not comply with the Lease or
these Rules and Regulations and Tenant shall indemnify and hold harmless
Landlord from its reasonable exercise of these rights with respect to the
vehicles of Tenant and its employees, agents and invitees.

20.         Janitorial Service. 
The janitorial staff will remove all trash from trashcans in the Common
Areas.  Any container or boxes left in
hallways or apparently discarded unless clearly and 

 42
 

                                conspicuously labeled DO NOT REMOVE may
be removed without liability to Tenant. 
Any large volume of trash resulting from delivery of furniture,
equipment, etc., should be removed by the delivery company or Tenant.  Janitorial service will be provided by
Landlord for the Common Areas after hours five (5) days a week.  Tenant shall provide comparable service for
the Remises.

21.         Construction.  Tenant
shall make no structural or interior alterations of the Premises.  All structural and nonstructural alterations
and modifications to the Premises shall be coordinated through Landlord as
outlined in the Lease.  Completed
construction drawings of the requested changes are to be submitted to Landlord
or its designated agent for pricing and construction supervision.

22.         After Hours HVAC.  All requests for non-Normal Building
Operating Hours air conditioning or heating must be submitted in writing by
Tenant’s authorized representative to Landlord or its Property Manager.  A list of persons authorized to request
non-Normal Building Operating Hours air conditioning and heating services (and
any amendments to such list) will be furnished by Tenant to Landlord and
Landlord shall be entitled to rely on such list.  Any such request must be made by 3:00 p.m. on
the day desired for weekday requests, by 3:00 p.m. on Friday for weekend
requests and by 3:00 p.m. on the preceding business day for Holiday
requests.  Requests made after that time
shall result in an additional charge to Tenant specified in Section 1.1 of the
Lease, but Landlord is in no event obligated to act on untimely requests.

23.         After Hours Access
Authorization.  An “After
Hours Access Authorization” form (to be supplied by Landlord or Landlord’s
property) is required for the following: (a) access to Building mechanical,
telephone or electrical rooms; (b) non-Normal Building Operating Hours service
elevator use; and (c) non-Normal Building Operating Hours Building access by
Tenant’s contractors (please note that Tenant is responsible for contacting
Landlord’s Property Manager in advance for clearance of any such contractors).

24.         After Hours Access Card.  On weekends, Holidays and during non-Normal
Building Operating Hours, the Building is accessible only by electronic access
card readers.  Tenant is responsible for
requesting from Landlord or Landlord’s Property Manager access cards for its
employees.  On or before the Commencement
Date, Landlord or its Property Manager will provide Tenant with a card for each
employee of Tenant.  Any replacement
cards requested by Tenant shall be invoiced to Tenant at Landlords cost per
card, subject to adjustment based on the cost to Landlord.

 43

 

EXHIBIT C

JANITORIAL SPECIFICATIONS

RESTROOMS

Services performed nightly:

-                                            Empty
and clean (when necessary) all waste receptacles, transport waste paper and
rubbish to the designated area.  Replace
all liners nightly.

-                                            Wash
and disinfect all basins, urinals and bowls using nonabrasive cleaners to
remove stains and clean undersides of rim on urinals and bowls.  Wash both sides of toilet seats.

-                                            Clean
all mirrors, bright work, and enameled surfaces.

-                                            Spot
clean all partitions, tile walls, doors and outside surfaces of all dispensers
and receptacles.  Damp wipe all lavatory
tops and remove water spots from wall surfaces next to
dispensers/receptacles.  Spot clean
around light fixtures.

-                                            Clean
flushometers, piping and other metal.  Do
not leave oily finish.

-                                            Fill
toilet tissue, soap, towel and sanitary napkin dispensers.  Do not place any extra supplies on top of
dispenser or counter top.  Do not install
adjacent rolls of toilet paper in opposite direction.

-                                            Sweep,
wet mop, and thoroughly rinse floor.  Clean
all corners and edges to prevent dirt buildup. 
Do not leave standing water on the floor. Spot clean door frames as
necessary.

-                                            Clean
and sanitize mouths of all trash cans and sanitary dispensers.

-                                            Dust
all doors.

Services performed as necessary or in the frequency
stated:

-                                            Scrub
all floors at least monthly - intent is to prevent buildup of dirt in grout.

-                                            Thoroughly
wash all partitions at least monthly.

-                                            Dust
all walls at least quarterly.

-                                            Wash
all walls at least annually.

-                                            Clean
light fixtures at least annually.

-                                            Clean
air vent grills at least quarterly.

-                                            Clean
soap dispensers at least quarterly.

It is the
intention to keep the restrooms thoroughly clean and not to use a disinfectant
or deodorant to kill odor.  Disinfectants
must be odorless.  Use of abrasive
cleaners or products that may damage any surface are not permitted.

ELEVATORS

Services performed nightly:

-                 Spot clean walls taking care not to damage surfaces.

-                 Dust or damp wipe metal finishes and return panels.

-                 Clean and polish all thresholds.

-                 Carpet floors; clean edges and vacuum.

-                 Tiles surfaces: 
sweep & damp mop.  Do not use
excessive water.

-                 Spot clean hall side of doors, frame and hall call
stations.

-                 Service elevators — sweep and damp mop floors.

 44
 

Services performed, as necessary:

-                                            Dust
ceiling.

-                                            Wash
hall side of doors and frame.

-                                            Dust
woodwork.

LOBBY

Services performed nightly:

-                                            Damp
mop tile surfaces.  Do not use excessive
water.

-                                            Clean
all edges and corners.

-                                            Clean
glass doors.

-                                            Clean
and polish all transoms, metal doors, door frames, etc.

-                                            Dust
fixtures, furnishings and other horizontal surfaces.

-                                            Spot
clean fingerprints off directory board. 
Dust interior panels.

-                                            Clean
surfaces of security console.

-                                            Spot
clean all walls.

Services performed as necessary or in the frequency
stated:

-                                            Dust
or wash wall surfaces as appropriate.

-                                            Dust
woodwork.

-                                            Clean
all air diffusers/grills.

COMMON
AREAS (including back retail hallway, smoking lounge and mailroom)

Services performed nightly:

-                                            Sweep/vacuum/damp
mop as indicated by type of flooring.

-                                            Spot
clean carpet

-                                            Spot
clean walls

-                                            Remove
any clearly marked trash and debris

-                                            Clean
and sanitize drinking fountains, follow with stainless steel cleaner, as
needed, taking care not to leave any oily residue.

-                                            Spray
wipe exterior finish of elevator call fixtures.

Services performed as necessary or in the frequency
stated:

-                                            Dust
all suite entrance doors; apply appropriate oil to wood doors no less than
annually.

 FREIGHT ELEVATOR VESTIBULES

Services performed nightly:

-                                            Sweep
and damp mop nightly.

-                                            Clean/wash
transoms high and low.

-                                            Clean
prints and marks from doors.

-                                            Spray
wipe exterior finish of elevator call fixtures.

-                                            Spot
clean walls.

-                                            Clean
elevator entrance frames.

 45
 

JANITORIAL
STAGING AREAS

Services performed as necessary or in the frequency
stated:

-                                            Maintain
all janitorial areas in a clean, neat and orderly condition at all times.

-                                            Maintain
office and staging area in same fashion as tenant office areas

-                                            Keep
all paper supplies elevated off the floor.

-                                            Utilize
shelving for chemicals.

-                                            Re-stage
brooms, mops and other equipment on a wall hanger at the end of a shift.

LOADING
DOCK

Services performed nightly:

-                                          Remove
all trash and debris and bring it to designated area.

-                                          Sweep
dock area.  Spot clean spills.  Damp mop dock area weekly.

-                                          Clean
and polish ash urn - replace sand as necessary.

SIDEWALKS

Service performed nightly:

-                                            Police
for trash - all areas including planting beds and along curb.

-                                            Straighten
furniture.

-                                            Remove
gum

ALL
COMMON AREAS

Upon completion of nightly duties, the floor
supervisors will ensure that all common areas have been cleaned and left in a
neat and orderly condition, all lights have been turned off, and all areas
properly secured.  Supervisors will be
responsible for completing a Nightly Supervisor Checklist which details any
problems encountered during the course of cleaning either the tenant space or
public areas.

 DAY STAFF RESPONSIBILITIES WILL INCLUDE, BUT
ARE NOT LIMITED TO

-                                            Re-stock
men’s and women’s restrooms twice daily. 
Wipe down and clean all lavatory tops and fixtures.  Patrol restrooms, removing paper/trash on
floor.  Report problems to the Property Manager.

-                                            Vacuum
elevator cab at least two (2) times daily. 
Remove all smudges and fingerprints from metal surfaces of interior cab.

-                                            Constantly
survey the lobby, common areas and sidewalk to ensure cleanliness. Clean up
spills.  Spot mop as required.  Remove fingerprints from door glass and metal
surfaces at least three (3) times daily. 
Clean trash from tree grates and planters.

 46
 

-                                            Clean
exterior entrance glass and entrance doors at least three (3) times daily.

-                                            Patrol
loading dock hallway, loading dock area and other backstage areas for trash at
least (2) times daily.

-                                            Perform
all special cleaning needs of individual tenants as authorized by the Property
Manager.

-                                            Perform
all specific duties as detailed in the job description and any others as
requested, from time to time, by the Property Manager.

-                                            Maintain
paper supply inventory for submittal to Property Manager.

-                                            Patrol
smoking areas for trash.  Empty ash
urns.  Vacuum as necessary throughout the
day.

-                                            Utility
person will be responsible for replacing all building standard lamps as needed.

All duties noted above may be performed at any time
regardless of frequency schedule if determined necessary by Property Manager.

 47

 

EXHIBIT D

MONTHLY
RENTS AND TERMS

 48
 

 

Exhibit D
Monthly Rent and Terms - Page 2

 

 49

 

EXHIBIT E

ANNUAL ANTICIPATED PROPERTY TAX AND INSURANCE TABLE

 

 50

 

EXHIBIT F

COMMON AREA

 

 51

 

EXHIBIT G

BUSINESS SUPPORT AREA

 

 52

 

EXHIBIT H

BUILDING STANDARD IMPROVEMENTS

Division 1: 
General Conditions

Provide all
supervision and temporary facilities required to complete the project as
outlined in the specifications and drawings. 
Provide insurance as required by Frostburg State University, Allegany
County and the developer.  One-year
warranty shall be provided for all construction.

Division
2:  Sitework

Earthwork:  This work shall include all tree protection,
clearing, and grubbing as well as the installation, protection, and modification
of utilities during Earthwork and Sitework construction, including any
necessary staging of work.  The work
shall also include scarifying, compacting and testing of any previously graded
sites or Sitework to ensure proper preparation, excavation, and placement of
soils to the required dimension and subgrade elevations, including placement of
top soils throughout the site.  The work
shall also include rock or boulder excavation as required.

Subsurface Compaction Grouting:  Provide a grouting system that
utilizes compaction grouted columns to both stabilize the rock mass over the
Pittsburgh mine seam, and provide a series of concrete columns to support the
existing rock mass above the mine seam through either existing voids or the
collapsed rubble. Utilize high pressure (600-700 psi) grouting pressures. Refer
to separate section detailing grouting concept within this submittal.

Termite Treatment:  This work of treating the buildings and the
Sitework around the buildings shall be performed by a contractor who is
licensed and registered by the State of Maryland in accordance with the
regulation of the appropriate governing authority.

Water and Sewer Systems:  This work shall include furnishing labor,
materials, services, equipment, and other necessary items required for
accomplishing the construction and installation of the sanitary sewer system,
the potable water lines and system, and all necessary permits.  All required excavation, backfill, and
compaction for the utility system is described in a related specification
section.  Water piping shall be PVC or
ductile iron.  Sewer piping shall be PVC
or cast iron.

Storm Drainage System:  The work shall include furnishing labor,
materials, and accessories of the Storm Drainage system, including detention
structures, outfall structures, inlets, manholes and all necessary
appurtenances in accordance with all the regulations and requirements of the
(MDE) Maryland Department of the Environment. 
Storm drain piping shall be HDPE, RCP, or CMP (steel).  Downspouts will be tied into the drainage
system.

Asphalt and Concrete Paving, Sidewalks, Curbs and
Gutters:  All material
shall be as listed on the Drawings and in the Specifications, including the
paving base course, asphalt concrete paving, Portland cement concrete paving,
curbing, curb and gutters, and all pavement markings with signage.  Parking will consist of a minimum of 300
spaces.  Pedestrian paths to be
decorative concrete, broom finish, or concrete pavers consistent with
University standards.

Landscape Work: 
This work includes the requirements for furnishing all
materials, labor, and equipment for the installation and establishing of
landscaped and grassed areas that 

 53
 

are not covered by
pavement, buildings, and other permanent construction.  Install all materials at locations indicated
on the Drawings.  All landscaping
materials to be compatible with Frostburg State University standards.

Division 3: 
Concrete

Cast-in-Place Concrete:  This work includes the entire layout,
forming, materials, reinforcing finishing and curing of all building and site
concrete.  All reinforcing related to
this section is described in a related Specification section.  Provide slab on grade as shown on drawings.  Provide 3000 psi concrete for slabs on grade
and elevated concrete decks.  Reinforcing
shall consist of 6” x 6” W2.9 welded wire fabric.  Provide miscellaneous stoops, housekeeping
pads and stair pan fill.

Division
4:  Masonry

Concrete Block Masonry:  This work includes all materials, labor,
equipment, mortar, and masonry accessories, including all horizontal and
vertical joint reinforcing and all expansion joint conditions, to complete the
concrete block masonry work as indicated on the Drawings and in the
Specifications.  A concrete masonry
sample panel is required for owner approval before the installation of the
masonry work begins.  The concrete
masonry block shall conform to one of the following standards:  ASTM C 55, ASTM C 73, ASTM C 90, and ASTM C
744 as indicated in the latest edition of the Standard Building Code.  All mortar and grout for the masonry
construction shall comply with ASTM C 270 per the latest edition of the
Standard Building Code.  All load bearing
walls shall be 3800 psi CMU below the second floor level and 1900 psi CMU above
the second floor level. Reinforce and grout CMU bearing walls at piers and
shear walls per the structural drawings. Exterior walls are to be load bearing
block with brick and split-face architectural concrete block veneer, glass or
metal panels.

Exterior Brick:  This work includes providing and installing
all materials, labor, and accessories and shall comply with the application
requirements of ASTM C 926.  The
installation of the framing shall comply with ASTM C 1063.  The Portland Cement shall comply.  Brick shall be continuous to the underside of
soffits or the top of parapets.  Include
through wall flashing and brick ties. 
Brick sample panel shall be approved prior to construction.  Over-sized brick shall be nominally 4” x 12”
x 4”.

Division
5:  Metals

Metal Fabrications:  The work on this section
defines the furnishing and installation of all structural steel components and
sections as indicated on the Drawings and in the Specifications.  This section also includes the materials,
labor, and installation of all light-gauge steel framing as indicated on the
Drawings and in the Specifications.  This
section also includes the fabrication and installation of all handrails,
guardrails and railings, which are to meet the latest State of Maryland ADA
Accessibility Code requirements.  Either
primed or painted steel components shall be specified as part of this section.
All structural steel designs shall be signed and sealed by a State of Maryland
registered engineer.

Atas Belvedere Series Wall Panel Systems:  This work includes a Metal Wall Panel System
with exposed fasteners and separate interior insulation. The panels will be
installed horizontally with no defined joints. The panels will be installed
over plywood or other open framing. The panels will carry a 20-year Finish
Warranty.

 54
 

Division
6:  Wood and Plastics

Rough Carpentry:  The work in this section includes all
blocking lumber and framing lumber including plates, anchors, bolts, screws,
and all accessories.  All rough carpentry
is to have no greater than a 19% moisture content.

Finish Carpentry:  As a part of this Specification, this section
related only to the interior standing and running trim in the apartment
units.  Wood door casing and window
stools are included.

Exterior Trim:  This work in this section is for wood trim to
be utilized at covered locations.  all
trim exposed to the elements shall either be aluminum clad or composite
material equal to a cement fiber trim. 
All wood used on the exterior and as roof blocking, whether to be
covered or not, shall be pressure treated.

Division
7:  Thermal and Moisture Protection

Waterproofing/Water Repellant/Joint Sealants:  Furnish and install all related items for the
complete application of the waterproofing, Water Repellant, and the Joint
Sealants as indicated on the Drawings.  All
exterior sealants to be high quality and commercial grade.  Provide membrane waterproofing at elevator
pits.

Insulation: 
Thermal Insulation shall be installed as follows:

	
  1. Exterior Walls:

  	
   

  	
  R-15

  
	
  2. Roof Deck:

  	
   

  	
  R-24.2

  

 

Sound
insulation shall be installed as follows:

	
  3. Floor Construction:

  	
   

  	
  Min. STC 50

  
	
  4. Partitions
  between Conference Rooms:

  	
   

  	
  Min. STC 50

  

 

Exterior
cavity wall insulation shall be rigid polystyrene board.

Roofing and Accessories:  Provide a single-ply,
fully-adhered membrane roof with 4” Polyiso insulation over a sloped structural
deck. EPDM roof shall be 60 mils., complying with ASTM D 4637, Type 1. Roof
shall have a twenty year warranty.

Division
8:  Doors and Windows

Metal Doors:  All exterior doors shall be hollow-metal
doors with an insulated core or thermal pane insulated glass.  All exterior doors to be heavy-duty
institutional grade.  The doors shall be delivered
to the jobsite primed and prepared to receive the hardware as specified. Hollow
Metal Doors are galvanized. Metal frames are 16 ga. Galvanized, primed, w/
anchors.

Aluminum Doors, Frames & Hardware:  All aluminum doors shall be butt hung with
three butt hinges per door leaf, 10” bottom rails, with standard manufacturer
pull handles, thresholds and weatherstripping. Von Duprin 98 rim exit devices
will be installed with removable mullions at pairs. Overhead door closers shall
be Norton #1604 and shall be surface mounted. All hardware will be office grade
2 commercial, US26D satin Chrome finish with Yale lever locks, Norton1600
series door closers, Monarch stainless steel exit devices and McKinney
ball-bearing hinges.

 55
 

Wood Doors:  All interior wood doors shall be
pre-assembled units with hardwood veneer. 
All interior unit doors shall be solid wood jambs and solid core
doors.  Suite entry doors shall be solid
core doors set in hollow metal frames. 
All interior doors shall be fitted in frames and fitted for the
specified hardware.  Wood veneer shall be
factory-stained oak.  All wood doors to
be factory finished per AWI 6th Edition, Version 1.1, 1994.

Insulated Glass:  This work includes providing all materials,
labor, anchorage, and accessories for the tinted reflective units in full sun
exposure areas. The reflective coating is to be installed on #2. Glass not in
full sun shall have the same appearance, but will not be tinted.

Curtainwall & Storefront Framing:  This work includes providing all materials,
labor, anchorage, and accessories and shall be sized as required. All finishes
shall be anodized aluminum.

Division
9:  Finishes

Gypsum Board:  The work in this section includes providing
and installing all materials, labor, applications, joint treatments, and
accessories for the installation of all gypsum wallboard shall be as shown on
drawings.  Gypsum board work shall
include all metal studs, tracks, furring channels and appurtenances required to
meet the requirements of the design.  All
apartment ceilings shall be gypsum board. 
Board used for ceramic tile back up in toilets and janitor’s closets
shall be WR tile backer board.

Ceramic Tile: Four inch square glazed wall
ceramic tile shall be provided at all fixture surrounds and wainscoating shall
be five (5) feet above the floor as provided for in the Drawings.  Toilet floor tile shall be 8 x 8 inch ceramic
pavers or 2x2 inch mosaic tile  with a marble threshold.

Resilient Flooring:  This work includes the furnishing
and installing of all materials, labor, accessories, and adhesives for vinyl
composition tile.  Colors shall be selected
by the interior designer  Estimated
useful life:  15 years.

Carpet:  Provide all labor and materials to furnish
and install the carpet as required in areas as designated on the drawings.  The carpet shall be 100% nylon pile continuous filament fiber or equivalent and shall
with a Carpet Allowance of twenty ($20) dollars per square yard including sales
taxes.  The carpet shall have a direct
glue application.

Painting:  All exterior metal railings and guardrails
and accessories are to receive a painted finish.  All interior paint is specified to be a
multi-coat high quality satin latex. 
Interior trim shall have a semi-gloss finish enamel paint of latex
quality.  All public spaces to have
washable latex paint finish.

Division
10:  Specialties

Toilet and Bath Accessories:  All bathroom units will include a toilet,
vanity and mirror.  Toilet paper holders
and towel bars will be provided.  This
section also addresses grab bars and other accessibility accessories.

 56
 

Division
11:  Equipment

Appliances: 
No appliances are to be included

Division
12:  Furnishings

Furniture:  Tenant will provide all furnishings.

Division
14:  Conveying Systems

Elevators:  Provide one (1) passenger hydraulic 3500 lb.
elevators with interior dimension of 5’ x 7’. 
All shall be ADA compliant and equipped with a hands-free emergency
phone.

Division
15: Mechanical

General:  
Work shall be in compliance with the Request for Proposal, National Fire
Protection Code, State Fire Marshal’s Office, ASHRAE and other applicable
codes.

Materials provided
on project shall be new and where applicable, have a U.L. Listing or other
acceptable labeling.

HVAC:  
Two completely separate systems are being proposed. The first and most
likely installation shall be as described in Section A below; the alternate
system in Section B is also being considered.

Section A — Geothermal Heat Pump Heating and Cooling: The
base building will be provided with multiple geothermal heating and cooling
units mounted above the ceilings. Condenser water piping and pump system will
be provided to distribute ground water to all heat pumps. Supply and diffusers
will be added to accommodate the occupant’s requirements. Where required, zone
damper systems may be provided to give additional zones of temperature control
to the occupants. Programmable temperature controls will be added per the
occupant’s requirements. Setpoints and schedules for the zone temperature
control will be coordinated.

Section B — Rooftop Gas/Electric Heating & Cooling Units:
The base building will be provided with rooftop gas/electric
heating and cooling units. The main supply and return duct trunk lines will be
provided into the space. Zone dampers will be connected to the supply duct
trunk lines. Each of these zone dampers will include a duct mount control damper
and a room temperature sensor as appropriate. Branch ductwork (insulated metal
or flex duct) will be added to connect the zone damper to the main supply duct
trunk line. : Lay-in style supply air diffusers will be added per the occupant’s
requirements. Return air grilles will be added as needed. Setpoints and
schedules for the zone temperature controls will be coordinated.

Exhaust systems to
utilize round rigid ductwork.

Plumbing Systems:   A
complete plumbing system will be provided. 
Work will comply with local plumbing codes and the contractor shall pay
permit fees.  Street pressure is adequate
to serve the building without the need for a booster pump.

Piping
types shall be as follows:

1.                                       H&C
water - smaller than three inch shall be type “M”.

2.                                       Sanitary
- Above ground type DWV PVC and below ground PVC.

 57
 

Fire Sprinkler System:  
A combination standpipe/sprinkler system will be
installed that meets National Fire Protection Association and the State of
Maryland, all other applicable code requirements.  Piping will be installed in concealed spaces
in finished areas, however no piping will be installed in the attic space or
exterior walls.

The static
pressure available to the site is estimated at 145 psi and should be adequate
to provide sprinkler protection without the need for a fire pump.  This assumes that adequate flow is available.

The overhead
system design will be based on Light Hazard, providing a density of .10 GPM
over the most remote 1,500 SF, except in the storage and mechanical areas in
which the density will be .15GPM over the most remote 1,500 SF.

Sprinkler piping
will be concealed in areas with suspended ceiling but not necessarily centered
in the ceiling tile; all other piping will be exposed. All common areas
including restrooms and lobby areas will be considered finished area. Tenant
area sprinklers will be installed exposed with 1” X 1⁄2” bushings.

Division
16: Electrical

General:   Work
shall be in compliance with the Request for Proposal, National Electric Code,
State Fire Marshal’s Office and other applicable codes.

Materials provided
on project will be new and where applicable have a U.L. Listing or other
acceptable labeling.

Electrical Power Distribution:   Three (3) 208/120 volt, 4 wire services will
be obtained from the local power company—one serving the common areas and the
other two serving student apartments.

The InfoSpherix
Wing shall have a common area service terminating into a 2,000 amp rated
switchboard assembly containing a utility metering compartment, a main fuse
switch compartment and a distribution compartment containing branch feeder
breakers to serve satellite panelboards throughout the wing of the building’s
interior.

All wiring has
been figured as Type MC cable and conduit (EMT or PVC) for power runs to
panels, HVAC equipment, transformers and elevator equipment. Interior lighting
is based on recessed lighting fixtures installed in lay-in acoustical
tile/ceiling grid system.

With the exception
of the feeders to dwelling unit load centers, all other interior building feeders
shall be routed in metallic conduits. 
Feeder conductors shall be copper. 
Panelboards shall have bolt-on breakers and copper bussing.  Load centers shall have plug-in breakers and
aluminum bussing.  Load centers shall be
main lug only type.

Basic
Materials:   Grounding
will be installed to meet the requirements of the National Electrical
Code.  A ground conductor shall be
installed with each branch circuits and feeders.  A grounding electrode system shall be
installed at each service switch and remote transformer in accordance with the
minimum requirements of the N.E.C.

 58
 

Wiring devices in
units shall be office grade and rated at 15 amperes unless otherwise required
by code.  All other devices shall be
commercial grade and rated 20 amperes. 
Switches within dwelling units shall be rated 120 volt.  Switches within common building areas shall
be dual rated 120/277V.  All devices
shall have an ivory finish.

Device plates
within dwelling units shall be thermoplastic with ivory finish.  Device plates in common interior spaces shall
be satin finished stainless steel, 302 having round and beveled edges.  Exterior wiring devices shall be equipped
with weatherproof cover plates.  Lighting
contactor and time clocks shall be utilized to control common exterior lighting
circuits.  Contactors shall be
electrically operated/mechanically held type. 
Time clocks shall be electronic type with self-adjustment for daylights
savings time.

Safety disconnect
switches will be heavy duty type and provided in accordance with the requirements
of the National Electrical Code.

Branch wiring will
be copper with type THWN/THHN insulation. 
Minimum size will be #14 for 15 ampere rated circuits.  Minimum size will be #12 for 20 ampere rated.  For dry concealed interior locations, branch circuit
wiring shall be accomplished using “MC” cable.

In general,
conduit shall be used for installing branch circuits and feeders as follows:

·                                          Rigid
steel conduit - feeders and branch circuits exposed in damp location.

·                                          EMT
— feeders and branch circuits exposed in interior locations.

·                                          Flexible
conduit - short lengths for connection to lighting fixtures, motors and other
vibrating equipment.

·                                          Schedule
40 PVC - branch circuits in direct contact with undisturbed earth.

Phenolic
nameplates, fastened by screw or epoxy bonding material, will be provided on
safety switches, panelboards, and motor starters.

Lighting:  
Lighting levels will be designed to meet the recommendation of the IES
Handbook and ASHRAE 90-75.

Interior lighting
shall be accomplished by the use of both fluorescent and incandescent lighting
fixtures. The use of incandescent light fixtures will be primarily within
dwelling units.   Fluorescent fixtures
shall utilize low harmonic electronic ballasts with either T-8 or compact
fluorescent lamps.  Exit signs will
utilize LED lamps.

Exterior site
lighting shall be accomplished by the use of cut-off luminaries with metal
halide lamps.

Lightning Protection System:   A Class I lightning protection system will
be provided as an alternate.  The system shall
be installed in accordance with the requirements of NFPA 780 will be certified
as a UL Master Labeled Lightning Protection System.

Automatic Fire Alarm:  
An addressable type fire alarm system will be provided
throughout the building.  Pull stations shall
be provided at the exits to each building level.  Additional pull stations shall be provided
where travel distances to pull stations exceed 200 feet.  Audible/visual appliances shall be installed
throughout the public spaces of the building. 
Within non-handicap designated dwelling units, only audible appliances
shall be installed.  Audible/visual
appliances shall be installed within handicap designated dwelling units.  A remote 

 59
 

graphic type
annunciator shall be installed within the building’s main lobby entrance.  Single station smoke detectors shall be
installed in accordance with the requirements of BOCA and NFPA.  Duct type smoke detectors shall be installed
on mechanical equipment with capacities 2000 cfm or greater.  Area type smoke detectors shall be installed
within elevator lobbies, elevator machine rooms, elevator shafts, elevator pit
and in areas containing fire alarm system control panels.  System will be installed to meet the
requirements of NFPA and the State Fire Marshal.

Wiring will be
installed in a designated conduit raceway system.

Access Control System:   An access control system will be provided
complete with, exterior door contacts, electric exterior door strikes and main
door remote entry directory.  Release of
door strike for entry into building. The security systems will be reliable and
easily controlled, maintained and repaired. 
Primary entrance doors shall have a key card for access.

 60

 

EXHIBIT I

Restrictive Covenants

 

 

 

 

 

 

 

 

GROUND SUBLEASE AGREEMENT

 

 

BOARD OF COUNTY COMMISSIONERS

OF ALLEGANY COUNTY, MARYLAND

Sublessor,

And

ALLEGANY RESEARCH PROPERTIES, LLC,

a Maryland limited liability,

Subtenant

 

 61

 

TABLE OF
CONTENTS

	
  ARTICLE I.

  	
   

  	
  DEFINITIONS

  
	
  ARTICLE II.

  	
   

  	
  SUBLEASE OF PROPERTY; TERMS OF SUBLEASE

  
	
  ARTICLE III.

  	
   

  	
  RENT

  
	
  ARTICLE IV.

  	
   

  	
  PARKING

  
	
  ARTICLE V.

  	
   

  	
  USE OF PREMISES

  
	
  ARTICLE VI.

  	
   

  	
  ACCEPTANCE AND CONDITION OF PREMISES

  
	
  ARTICLE VII.

  	
   

  	
  DESIGN REVIEW AND INSPECTION

  
	
  ARTICLE VIII.

  	
   

  	
  CONSTRUCTION OF FACILITIES BY SUBTENANT

  
	
  ARTICLE IX.

  	
   

  	
  SUBLESSOR OBLIGATIONS

  
	
  ARTICLE X.

  	
   

  	
  ENCUMBRANCES

  
	
  ARTICLE XI.

  	
   

  	
  MAINTENANCE, REPAIR AND UTILITIES

  
	
  ARTICLE XII.

  	
   

  	
  CERTAIN LIENS PROHIBITED

  
	
  ARTICLE XIII.

  	
   

  	
  OPERATION AND MANAGEMENT OF FACILITIES

  
	
  ARTICLE XIV.

  	
   

  	
  INSURANCE AND INDEMNIFICATION

  
	
  ARTICLE XV.

  	
   

  	
  TERMINATION, DEFAULT AND REMEDIES

  
	
  ARTICLE XVI.

  	
   

  	
  IMPROVEMENTS

  
	
  ARTICLE XVII.

  	
   

  	
  FACILITIES PROMOTION

  
	
  ARTICLE XVIII.

  	
   

  	
  CONDEMNATION

  
	
  ARTICLE XIX.

  	
   

  	
  ASSIGNMENT, SUBLETTING AND TRANSFERS OF SUBTENANT’S INTEREST

  
	
  ARTICLE XX.

  	
   

  	
  COMPLIANCE CERTIFICATES

  
	
  ARTICLE XXI.

  	
   

  	
  TAXES AND FEES

  
	
  ARTICLE XXII.

  	
   

  	
  FORCE MAJEURE

  
	
  ARTICLE XXIII.

  	
   

  	
  HAZARDOUS MATERIALS

  
	
  ARTICLE XXIV.

  	
   

  	
  CONDITIONS TO EFFECTIVENESS OF SUBLEASE

  
	
  ARTICLE XXV.

  	
   

  	
  PHASE II

  
	
  ARTICLE XXVI.

  	
   

  	
  REPRESENTATIONS AND WARRANTIES

  
	
  ARTICLE XXVII.

  	
   

  	
  MISCELLANEOUS

  

 

EXHIBITS

	
  A1 —

  	
   

  	
  Site plan of Ground Sublease Premises (Phases I
  & II)

  
	
  A2 —

  	
   

  	
  Legal Description of Ground Sublease Premises

  
	
  B1 —

  	
   

  	
  Site Plan of Allegany Business Center

  
	
  B2 —

  	
   

  	
  Legal Description of Allegany Business Center

  
	
  C —

  	
   

  	
  Easements

  
	
  D —

  	
   

  	
  Design Guidelines

  
	
  E —

  	
   

  	
  Permitted Exceptions

  
	
  F —

  	
   

  	
  Prohibited Uses

  
	
  G —

  	
   

  	
  Permitted Uses

  

 

 62

 

ALLEGANY
RESEARCH PROPERTIES, LLC

GROUND SUBLEASE AGREEMENT

This GROUND SUBLEASE AGREEMENT (“Sublease”), dated as
of this        day of                   ,
2007, by and between the BOARD OF COUNTY COMMISSIONERS OF ALLEGANY COUNTY,
MARYLAND, a body politic and corporate and a political subdivision of the State
of Maryland, (“Sublessor”) and ALLEGANY RESEARCH PROPERTIES, LLC, a Maryland
limited liability company, having its principal place of business at 11521
Milnor Avenue, Cumberland, Allegany County, Maryland (“Subtenant”).

PRELIMINARY STATEMENTS

(1)           Sublessor
is the Ground Tenant of a certain parcel of land to be developed and operated
as a business park (“Allegany Business Center” or “Campus”), situated in the
County of Allegany, Maryland, and more particularly described on Exhibit B,
attached hereto and made a part hereof (“Ground Sublease Premises”).  Sublessor leased the Ground Lease Premises
from the State of Maryland for the use of the University System of Maryland on
behalf of its constituent institution, Frostburg State University (“Landlord”)
under that certain Ground Lease dated the 10th day of January, 2001.

(2)           In order to assist in the development of
Research Buildings and related facilities at Frostburg State University (“University”),
Sublessor has decided to sublease a portion of the Campus to Subtenant for the
purpose of developing, constructing, operating, and leasing such facilities
which shall be known as FSU Research Properties (the “Project”).

(3)           Subject
to certain conditions precedent set forth in Article XXIV below, Sublessor and
Subtenant have determined to enter into this Sublease whereby Sublessor will
Sublease one (1) tract of Campus land to Subtenant:  of approximately twelve (12) acres (the “Land”)
as more particularly described on Exhibits A-1 and A-2.  Subtenant will develop, construct, operate,
and Sublease Project improvements on such land subject to the terms of this
Sublease.

(4)           Sublessor
also desires to grant Subtenant the right to Sublease an additional Campus
tract containing approximately six (6) acres as more particularly described on
Exhibit B (the “Phase II Facilities Tract”) to develop and construct a second
Project Phase within a five (5) year period from the date hereof.

In consideration of the mutual covenants, conditions
and agreements which follow, the parties hereby agree as follows:

ARTICLE I. 
DEFINITIONS

SECTION 1.01.      Definitions.  In addition to such other defined terms as
may be set forth in this Sublease, the following terms have the following
meanings:

“Additional Rent” has the meaning given to that term
in Section 3.03.

“Adjacent Land” has the meaning given to that term in
Section 2.01.

“Affiliate” when capitalized and with respect to a
designated Person, means any other Person that, directly or indirectly,
controls, is controlled by, or is under common control with such designated
Person.  For purposes of this definition,
the term “control” (including the 

 63
 

correlative meanings of the terms “controlled by” and “under
common control with”), as used with respect to any Person, means possession,
directly or indirectly, of the power to direct or cause the direction of the
management policies of such Person, whether through ownership of voting
securities or by contract or otherwise.

“Assessed Value” means the assessed value of the Land
(without consideration given to the value of any improvements) determined July
1st of each year during the Term by the Maryland State Department of
Assessments and Taxation and is based upon the pro rata assessment as applied to
the acreage of the land at the main campus and owned by the University in
Frostburg, Maryland.

“Alterations” has the meaning given to that term in
Section 11.03.

“Award” means any payment or other compensation
received as a consequence of a Taking, from or on behalf of any Governmental
Authority or any other Person vested with the power of eminent domain.

“Bankruptcy” shall mean, for any person, (a) that such
Person (i) applies for or consents to the appointment of a receiver, trustee or
liquidation of such Person of all or a substantial portion of its assets, (ii)
files a voluntary petition in bankruptcy or admits in writing its inability to
pay its debts as they become due, (iii) makes an assignment for the benefit of
its creditors, (iv) files a petition or an answer seeking a reorganization or
an arrangement with its creditors or seeks to take advantage of any insolvency
law, (v) performs any other act of bankruptcy, or (vi) files an answer
admitting the material allegations of a petition filed against such Person in
any bankruptcy, reorganization or insolvency proceedings; or (b) that an order,
judgment or decree is entered by any court having jurisdiction adjudicating
such Person as bankrupt or insolvent, approving a petition seeking such a
reorganization or appointing a receiver, trustee or liquidator of such Person
or all of a substantial part of its assets, or (c) that there is otherwise
commenced with respect to such Person or any of its assets, any proceeding
under bankruptcy, reorganization, arrangement, insolvency, readjustment,
receivership, or similar law, and if such order judgment, decree or proceeding
continues stayed for a period of sixty (60) consecutive days.

“Base Rental” has the meaning given to that term in
Section 3.02.

“Base Yield” in connection with the calculation of
Base Rent has the meaning given to that term in Section 3.02.

“Business Day” means any day other than a Saturday,
Sunday or Holiday.

“Campus” means the Allegany Business Center portion of
the Frostburg State University grounds.

“City” means the City of Frostburg, a municipality and
political subdivision of the State of 
Maryland.

“Claims” has the meaning given to that term in Section
14.01.

“Commencement of Construction” means the date on which
excavation or foundation work is begun for the Facilities.

 64
 

“Conditions” mean those conditions precedent to the
effectiveness of the terms of this Sublease as set forth in Article XXIV
hereof.

“Construction Contract” has the meaning given to that
term in Section 8.03.

“Controversy” means any controversies, disputes,
actions causes of action of other claims arising out of or in connection with
the provisions of this Sublease.

“Design Review and Compliance Board” (“Board”) means a
committee of the Landlord and Sublessor, which shall receive Proposals in
respect to the development of the Land, review and evaluate the Proposal for
technical compliance with the Design Guidelines and satisfaction of the
requirements for Proposals, and issue an Advisory Report stating the Board’s
recommendations formulated consistently with the provisions of the Master
Ground Lease. The Board’s review shall be in accordance with Article VII of the
Master Ground Lease.

“Design Guidelines” means the Design Guidelines of the
Allegany Business Center at Frostburg State University attached hereto as
Exhibit D.

“Easements” are defined in Section 2.01 and more
particularly depicted on Exhibit C.

“Effective Date” means the date of Execution of this
Agreement.

“Event of Default” means any event specified in
Section 15.01.

“Expiration Date” means the expiration date of this
Sublease.

“Facilities” mean all improvements constructed on the
Land, including a two (2) story building containing not less than 50,000 sq.
ft. together with on-site and off-site parking facilities.

“Force Majeure” means any (a) act of God, landslide,
lightning, earthquake, hurricane, tornado, blizzard and any other adverse and
inclement weather, fire, explosion, flood, act of a public enemy, war,
blockade, insurrection, riot, or civil disturbance; (b) labor dispute, strike,
work slowdown, or work stoppage; (c) order or judgment of any Governmental
Authority, if not the result of willful or grossly negligent action of
Subtenant; (d) adoption of or change in any Applicable Law after the date of
execution of this Sublease; or (e) any other similar cause of similar event
beyond the reasonable control of Subtenant.

“Hazardous Material” has the meaning given to that
term in Section 23.01.

“Impermissible Discrimination” has the meaning given
to that term in Section 27.02.

“Improvements” shall mean collectively the Site
Improvements and the Infrastructure existing at any time, from time to time.

“Indemnified Parties” has the meaning given to that
term in Section 14.01.

“Infrastructure” shall mean (a) any storm water
management ponds which are necessary, (b) the duct banks, and (c) all materials
owned by Sublessor or Subtenant and intended for the construction or repair or
maintenance of the Infrastructure, upon deliver to the Land; however, “Infrastructure”
shall not include any improvements, which are Site Improvements, regardless of
location.

 65
 

“Land” means the one (1) tract of approximately twelve
(12) acres (“Phase I Facilities Tract”) located on the Allegany Business Center
portion of the University grounds as more particularly described in the
attached Exhibits A-1 and A-2.

“Lease Year” means 
(a) the period beginning on the Rental Commencement Date and ending on
the first June 30th after the Rental Commencement Date regardless
of the number of days in that year., and (b) each successive twelve month
period provided however, the last Lease Year shall end on the expiration of the
term.

“Management Agreement” means any management agreement
entered into by Subtenant with any Person including itself for the management
of the Premises or any part thereof.

“Manager” has the meaning given to that term in
Section 13.01.

“Market Rate Research” means On-campus research
facilities Subleased to all acceptable Persons without Impermissible
Discrimination at rental rates in accordance with the existing market for
University research and as approved by the University.

“Master Ground Lease” is that agreement entered into
between the State of Maryland for the use of the University System of Maryland
and on behalf of its constituent institution, Frostburg State University
(Landlord), and Allegany County (Tenant), dated January 10, 2001, and recorded
in Deeds Liber 690, Folio 516, among the Land Records of Allegany County,
Maryland.

“Mortgage” shall mean any mortgage or deed of trust or
any other security interest under any other form of security instrument or
arrangement (including any such other form or security arrangement) (including
any such other form or security arrangement arising under a deed of trust, sale
Subleaseback, or Sublease-Subleaseback documents, security deed, or conditional
deed or any financing statement, security agreement or other documentation used
pursuant to the provisions of the Uniform Commercial Code or any successor or
similar statute) saving and excepting as may be created under this Sublease, at
any time encumbering any or all of the Campus, or Subtenant’s Interest, or
Revenues.

“Notice” means any notice, communication, request,
reply or advice or duplicate thereof in this Sublease provided or permitted to
be given, made or accepted by either party to any other party, in writing and
given or served in accordance with Section 27.21.

“Permitted Assignee” means (a) any Permitted
Mortgagee, any purchaser at a Foreclosure, any other Person selected by a
Permitted Mortgagee (or its successors or assigns) subsequent to a Foreclosure
of a Permitted Mortgage; and (b) any Affiliate of the foregoing and any
Affiliate of Subtenant.

“Permitted Mortgage” means any contractual lien, deed
of trust, mortgage, assignment, security interest or similar instrument granted
from time to time to a Permitted Mortgagee in Subtenant’s Subleasehold estate
in the Premises and Subtenant’s other rights under this Sublease, or any
portion thereof; provided, however, that such instrument or document meets the
requirements of a Permitted Mortgage set out in Section 10.02 below.

“Permitted Mortgagee” means any lender, or any holder
of a debt instrument, which is secured by a Permitted Mortgage or is a
beneficiary of any Permitted Mortgage, and their successors and assigns and any
purchaser at a Foreclosure of any such Permitted Mortgage.  

 66
 

Such term includes, without limitation, any trustee
pursuant to an indenture of trust, or similar instrument, under which notes,
bonds or other evidences of debt or certificates of participation are issued
which are secured by a Permitted Mortgage or where such trustee is a
beneficiary of a Permitted Mortgage.

“Permitted Use” has the meaning given in Section
Article V of this Sublease.

“Person” means a natural person, a trustee, a
corporation, partnership, limited partnership, and any other form of legal
entity or a governmental agency.

“Phase II Facilities Tract” means that approximately 6
acre campus tract to be subleased to Subtenant in accordance with the terms of
Article XXV.

“Plans and Specifications” has the meaning given to
that term in Section 8.03.

“Premises” means the Land and the Facilities and
related improvements.

“Project Design Documents” has the meaning given to
that term in Section 7.02.

“Rent” means Base Rent and Additional Rent pursuant to
Article III.

“Rental Commencement Date” has the meaning given to
that term in Section 3.01.

“Right to Sublease” means Subtenant’s automatic right
to Sublease the Phase II Facilities Tract from Sublessor subject to the terms
of Article XXV.

“Space Subleases” mean all Subleases, Subleases,
licenses or occupancy agreements for rentable area within the Improvements
entered into by Subtenant as landlord, Sublessor, Sublessor, or licensor, as
the case may be.

“Space Tenant” means any occupant under a Space
Sublease.

“Stabilized Year” means any Sublease year in which the
net operating income is sufficient to equal or exceed 1.3 , which is the
coverage ratio required by the lender multiplied by the annualized mortgage
payment.

“Sublessor’s Interest” means the leasehold estate
title in the Land under that Ground Sublease between the University and the
Sublessor dated January 10th, 2001, Sublessor’s residual interest in the Facilities
located on the Land after the end of the Term and Sublessor’s interest under
this Sublease and the Master Ground Lease.

“Substantial Completion” has the meaning given to that
term in Section 8.04.

“Taking” or “Taken” means the actual or constructive
condemnation, or the actual or constructive acquisition by condemnation,
eminent domain or similar proceeding by or at the direction of any Governmental
Authority or other Person with the power of eminent domain or other transfer in
lieu of any such proceeding.

“Term” has the meaning given the term in Section 2.03.

“Total Imputed Debt” means the total unpaid principal,
accrued and unpaid interest, reasonable foreclosure costs and reasonable legal
fees secured by the Permitted Mortgage, and 

 67
 

other amounts which are related to the Facilities
advanced by (or indemnification payments owed to) any Permitted Mortgagee
pursuant to the Permitted Mortgage, together with interest accrued on such
amounts (until such amounts are repaid out of Net Cash Flow or sale and finance
proceeds) at the per annum rate of interest on the indebtedness secured by a
Permitted Mortgage.

“University” means Frostburg State University, a
constituent institution of the University System of Maryland, as agency of the
State of Maryland.

“Yield” in reference to the calculation of Base Rent
has the meaning given to that term in Section 3.02(b).

ARTICLE II. 
SUBLEASE OF PROPERTY; TERMS OF SUBLEASE

SECTION 2.01.      Sublease
of Premises.  In consideration of the
rents, covenants, agreements and conditions herein set forth, which Subtenant hereby
agrees to cause to be paid, kept and performed, Sublessor does hereby let,
demise and rent exclusively unto Subtenant, and Subtenant does hereby Sublease
and rent from Sublessor,  that certain
tract of land owned by the State of Maryland for its Constituent University Frostburg State University (the Owner)
and leased to Allegany County herein
defined as the Sublessor and located in the City of Frostburg, Allegany County,
Maryland and more particularly described on Exhibits A-1 and A-2, attached
hereto and made a part hereof (the “Land”) together with all easements and
rights of access over and upon the Land and the land of Sublessor located
adjacent to the Land (“Adjacent Land”) for pedestrian and vehicular ingress,
egress and regress to and from the Subleased Premises and to and from any entry
and entrances located thereby and connecting with public right of way as more
particularly shown on Exhibit C, (collectively, the “Easements”) attached
hereto and made a part hereof.  Such
rights of access granted to Subtenant hereunder shall extend to all tenants of
the Facilities and all employees, licenses and invitees of Subtenant and/or
Subtenant’s tenants.

By the execution of this Sublease, Subtenant accepts
the Subleasehold estate herein demised subject to all easements and other
matters referred to in the attached Exhibit E (“Permitted Exceptions”).

SECTION 2.02.      Habendum.  To have and to hold the Premises, together
with all and singular the rights, privileges, and appurtenances thereto
attaching or any wise belonging, exclusively unto Subtenant, its successors and
assigns, for the term and upon the conditions hereinafter set forth and subject
to the terms and conditions of the Master Ground Lease.  The terms and conditions of the Master Ground
Lease shall control and supersede any conflicting terms and conditions set
forth in this Sublease.  This Sublease
shall be deemed to be amended to incorporate herein the provisions in the
Master Ground Lease.

SECTION 2.03.      Term.  Unless sooner terminated as herein provided,
this Sublease shall continue and remain in full force and effect for a term
commencing on the date hereof and ending at midnight on June 30, 2057 (“Term”)
and concurrent to the terms of the Sublessor’s Ground Lease.

SECTION 2.04.      Warranty
of Quiet Enjoyment.  To the extent
permitted by law, Sublessor covenants that Subtenant, on paying the Rent and
performing and observing all of the covenants and agreements herein contained
and provided to be performed by Subtenant, shall and may peaceably and quietly
have, hold, occupy, use, and enjoy the Premises during the Term, and may exercise all of its rights
hereunder and Sublessor agrees to warrant and forever defend Subtenant’s right
to such occupancy, use, and enjoyment of the Premises against the claims of 

 68
 

any and all Persons whomsoever lawfully claiming the
same, or any part thereof, by, under, or through Sublessor, subject only to the
provisions of this Sublease and the Permitted Exceptions.

SECTION 2.05.      Option
to Extend Term.  Subject to the terms
and conditions of the Master Ground Lease, for and in consideration of the sum
of Ten Dollars ($10.00) cash in hand paid by Subtenant to Sublessor, the
receipt and sufficiency of which are acknowledged, Sublessor, for itself, its
successors and assigns, hereby grants to Subtenant and to any Permitted
Mortgagee, as applicable, one (1) option to renew and extend the Term for a
period of twenty (20) years, commencing upon the expiration of the Term and
expiring on midnight on June 30th, 2076, unless this Sublease is
terminated earlier pursuant to the provisions of this Sublease or unless there
remains uncured any breach of any covenant set forth in this Sublease which
Sublessor has theretofore notified Subtenant and any Permitted Mortgagees and
as to which the applicable time to cure such breach has finally expired.  Should Subtenant or a Permitted Mortgagee
desire to exercise its option to extend the Term, it shall do so by delivering
to Sublessor written notice of its intention to exercise such option on or before
one hundred eighty (180) days prior to the expiration of the Term.

In the event Subtenant fails to exercise its option to
extend the Term, Sublessor shall notify the senior most Permitted Mortgage in
writing of such fact and allow such mortgagee a period of thirty (30) days from
the date of such notice in which to its rights hereunder.

ARTICLE III. 
RENT

SECTION 3.01.      Commencement
of Rental Period and Lease Year.

(a)           The
Term shall be divided into rental periods each of one (1) year.  The first rental period shall commence on the
date a Certificate of Occupancy is issued for the Facilities (the “Rent Accrual
Date”).  The First “Lease Year” shall begin on the Rent
Accrual Date.  It shall end on the first
June 30th after the Rent Accrual Date regardless of the
number of days in that year.

(b)           Each
subsequent “Lease Year,” shall begin
on July 1st after the previous Lease
Year and shall end on the first anniversary of the last day of the previous Lease Year.

(c)           The
last “Lease Year” shall begin on the
day after the previous Lease Year
and shall end on the Expiration Date.

SECTION 3.02.      Base
Rental.

(a)           During
the Term, Subtenant shall pay Sublessor at the end of each Lease
Year an annual sum in an amount equal to twelve percent (12%) of the Assessed
Value.

(b)           Provided,
however that for the purposes of any calculation hereunder the Base Rental
shall not increase more than four percent (4%) per annum above Base Rental of
the previous Lease Year.

(c)                                  Base
Rental shall be due and payable in arrears, forty-five (45) days after each
subsequent Lease Year.

(d)                                 Provided,
however that no Base Rental payment shall be due for any year which is not a
Stabilized Year.

 69
 

(e)                                  As
the first rental period may consist of less than three hundred sixty-five (365)
days, the Base Rental for the first rental period shall consist of the amount
equal to twelve percent (12%) of the Assessed Value multiplied by the amount
reached when dividing the number of days in the first Sublease Year by three
hundred sixty-five (365).

SECTION 3.03.      Additional Rental - Property Taxes.  In addition to the Base Rental, Subtenant
shall annually pay to Sublessor, the City of Frostburg and the State the
property taxes assessed on the value of the improvements subject to the
exceptions as provided under all applicable Enterprise Zone or other statutes
which might entitle the Facilities to special tax abatements or reductions.

ARTICLE IV. 
PARKING

SECTION 4.01.      Compliance.  Subject to the terms and conditions of the
Master Ground Lease, and any requirements of the Design Review and Compliance
Board (the “Board”), Subtenant shall provide such number of parking spaces that
are not less than those that may be required by the regulations and ordinances
of the City.

ARTICLE V.  USE
OF PREMISES

SECTION 5.01.      Purpose
and Use of Sublease.  Subtenant is
entering into this Sublease for the purpose of developing, constructing and
maintaining the Market Rate Research Facility substantially in accordance with
the Design Guidelines and the Permitted Uses as follows:

(a)           Those uses listed in Exhibit G,
attached (“Principal Uses).

(b)           With
prior approval of the Board, any use which is permitted unless under and to the
extent permitted under any Zoning Ordinance as an ancillary use to a Principal
Use, whether or not the ancillary use is a Prohibited Use.

(c)           Any
use specifically approved by the Board.

SECTION 5.02.      Prohibited
Uses.  Unless approved by the Board
in writing, no Land or Improvements shall be devoted to any of the following
uses (each of which is hereinafter referred to as a “Prohibited Use”):

(a)           Any use which violates the provisions
of this Sublease, the Master Ground Lease, any zoning ordinance, or any other
applicable law, ordinance or regulation.

(b)           Any use listed in a schedule attached
hereto as Exhibit F.

(c)           Any other use whatsoever, except
those uses explicitly permitted under Section 5.01 of this Sublease (“Permitted
Uses”).

SECTION 5.03.    Open Space.  Open Space may be used for any recreational
or ecological purpose, or as park land, or for any cultural, educational or
passive purpose or for any other purpose for which Subtenant or Space Tenant is
authorized or empowered under applicable law to use such Open Space. Subtenant
shall cause the same to be regularly maintained in a neat condition and in good
order and repair, and to be improved and kept in accordance with the Design
Guidelines and the Business Park Plan.

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SECTION 5.04.      Further
Restrictions on Use:

(a)          No
more than thirty-three percent (33%) of the Net Assignable Area of any Building
shall be devoted to warehousing or distribution uses.

(b)         No
more than ten percent (10%) of the Net Assignable Area of any Building shall be
devoted to activities which the U.S. Department of Health and Human Services
requires to be conducted in a Biosafety 3 facility.

(c)          Any
laboratory setting in which there are infectious agents shall be operated in
accordance with a code of operation for microbiology laboratories, confirming
with practices, safety equipment and facilities as categorized by the U.S.
Department of Health and Human Services Center for Disease Control and National
Institutes of Health as Biosafety Levels 1, 2, or 3.

ARTICLE VI. 
ACCEPTANCE AND CONDITION OF PREMISES

SECTION 6.01.      Subtenant’s
Inspection.  Subtenant has had full
opportunity to inspect and examine the Land. 
Except for the express representations and warranties of Sublessor set
forth in his Sublease inclusive of Section 6.02 below, Subtenant’s execution of
this Sublease shall be conclusive evidence of Subtenant’s acceptance of the
Land in an “as is” condition and, subject to Sublessor’s obligations set forth
herein, Subtenant hereby accepts the Land in its present condition.

SECTION 6.02.      Environmental
Representations.  Except as disclosed
by Sublessor to Subtenant in writing, Sublessor represents and warrants, to the
extent permitted by law and to the best of its knowledge, information and
belief, there is no activity on the Land involving, directly or indirectly, the
use, generation, treatment, storage or disposal of any Hazardous Material as defined
in Section 23.01 (a) under, on or in the Land, whether contained in soil,
tanks, swamps, ponds, lagoons, barrels, cans or other containments, structures
or equipment, (b) incorporated in any structures or improvements to the Land,
including any building material containing asbestos, or (c) used in connection
with any operations on or in the Land. Sublessor has received no written notice
under applicable Federal, state or local law regarding any Hazardous Materials
in, on or under the Premises or requiring the removal of any Hazardous
Materials from the Premises; Sublessor has never knowingly used, processed,
released, discharged, generated, stored or disposed of any Hazardous Materials
on, under or about the Property and, to Sublessor’s actual knowledge without
independent investigation, no Hazardous Materials have been used, processed,
released, discharged, generated, stored or disposed of on the Premises by any
other person or entity.

ARTICLE VII. 
DESIGN REVIEW AND INSPECTION

SECTION 7.01.      Design
Review.

(a)           All
Project Design Documents must be reviewed and approved in writing by the
University or the “Design Review and Compliance Board” (“Board”), consisting of
a committee of the Landlord and Sublessor.

(b)           Unless
and until the Board has performed design review and has given prior written
approval in each instance, (a) no Structure may be commenced, constructed,
reconstructed, erected, reerected, placed, replaced, maintained or permitted to
remain on a lot; (b) no Structure existing on a Lot may be altered in any way
(including exterior painting, but excluding interior 

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painting or other modifications which are not visible
from the exterior of the Structure); (c) the surface or grade of a Lot may not
be altered by grading or in any other manner; (d) no Use may be commenced upon
a Lot.

SECTION 7.02.      Project
Design Documents.   Design documents
prepared in accordance with the Design Guidelines to be submitted by the Board
for architectural review and prior written approval shall include the following
documentation, unless otherwise specifically waived in part by Board
(collectively the “Project Design Documents”):

(a)           Architectural
renderings or model of the exterior elevations of the Facilities.

(b)           Site
Plan showing the location of all proposed improvements, all applicable set back
and/or buffer requirements and the footprint of all buildings or other
structures to be constructed, together with the finished floor elevation
thereof.

(c)           Schematic
landscaping plan, inclusion of walkways, fences and walls.

(d)           Schematic
plan of parking areas (both on and off site), driveways, loading and service
areas.

(g)           General
architectural renderings for representative exterior graphics and signage.

(h)           Any
other material reasonably requested by the Board of such nature containing such
information and in such form as are specified from time to time by the Board or
in the applicable Design Guidelines (collectively the “Plans”).

Approval of Project Design Documents shall be final
and such approval may not be rescinded thereafter, provided that the Facilities
are constructed and maintained in substantial conformity with the approved
design documents.

SECTION 7.03.      Approval
Period.  Approval or disapproval of
Project Design Documents should be issued in writing by the Board  immediately after a review is completed but
in no event later than sixty (60) days from the date of Subtenant’s delivery of
the Design Documents to Sublessor.

SECTION 7.04.      Inspection.  Upon five (5) days notification to Subtenant
and as accompanied by Subtenant’s Representative, Sublessor shall have the
right to enter upon the Subleased Premises during construction for the purpose
of inspecting the ongoing construction of the Facilities and to determine that
such work is being performed in conformity with the approved Project Design
Documents and the Plans and Specifications referenced below.

SECTION 7.05.      Certificate.  After the completion of construction or
alteration of any Improvement, or the commencement of any use thereon, the
Board, upon written request of the Owner or Mortgagee thereof, shall issue a
certificate in a form which is suitable for recordation among the Land Records,
(a) identifying such Lot and such Improvement or use, (b) stating that the
Board has reviewed the Plans covering such Improvement or use, and (c) stating
that such Improvement or use is in compliance with the Master Ground Lease and
this Sublease to the extent and in the manner set forth in the provisions
therein.

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ARTICLE VIII. 
CONSTRUCTION OF FACILITIES BY SUBTENANT

SECTION 8.01.      Subtenant
to Pay Costs.  Subtenant will develop
and construct the Facilities on the Land at its own cost and expense subject to
specific contributions from the State (“State Contributions”), which
contributions may be either direct or made through the Sublessor.  Sublessor shall have no financial obligation
or other obligation of any kind under this Sublease except as specifically set
forth herein.  Subtenant shall furnish all
supervision, tools, implements, machinery, labor, materials, and accessories as
are necessary and proper for the construction of the Facilities, shall pay for
all permit and license fees, and shall construct, build, and complete the
Facilities in a good, substantial and workmanlike manner, all substantially in
accordance with this Sublease, the Plans and Specifications, and all documents
executed pursuant hereto and thereto. State Contributions, which may include
partial contributions from or through Sublessor, are more specifically defined
in the Pro Forma in Exhibit E and are enumerated as follows:

(a)           Costs
of constructing the site work.

(b)           Costs
of grouting the coal mines beneath or in the Land.

(c)           Costs
of constructing an operational field of approximately 160 Geo-thermal wells.

SECTION 8.02.      Subtenant
Control.  Except as provided in
Article VII hereof Subtenant shall have the right to and shall provide for the
location, construction, erection, maintenance, and removal of improvements, in
any lawful manner, upon or in the Land for the purpose of carrying out any of
the activities provided for herein.

SECTION 8.03.      Delivery
of Construction Documentation.  Prior
to Commencement of Construction, Subtenant shall deliver to Sublessor (i) a
copy of the signed contract between Subtenant and the general contractor for
the construction of the Facilities (“Construction Contract”) and (ii) two (2)
complete sets of the Project’s Plans and Specifications as prepared in
accordance with the approved Project Design Documents by architect and engineer
licensed in Maryland (the “Plans and Specifications”).

SECTION 8.04.      Substantial
Completion.  Subject to Force
Majeure, Subtenant covenants that Substantial Completion shall occur within a
reasonable time commensurate with Subtenant’s due diligence and the
construction time reasonably necessary for projects of this type and size in
the Frostburg, Allegany County, Maryland area. 
“Substantial Completion” means that construction of the Facilities has
been completed substantially in accordance with the Plans and Specifications.

SECTION 8.05.      Construction
Standards and Liens.  Any and all
improvements to the Premises shall be constructed, and any and all alteration,
renovation, repair, refurbishment, or other work with regard thereto shall be
performed, in accordance with the following construction standards:

(a)           All
such construction or work shall be performed in a good and workmanlike manner
in accordance with good industry practice for the type of work concerned and
the Design Guidelines as delineated in the Project Design Documents.

(b)           All
such construction or work shall be done in compliance with all applicable
codes, regulations and ordinances of the City.

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(c)           No
such construction or work shall be commenced until all licenses, permits and
authorizations required by City are obtained.

(d)           Subtenant
shall have obtained and shall maintain in force and effect the insurance
coverage required in Section 14.03 with respect to the type of construction or
work concerned.

(e)           After
commencement, such construction or work shall be prosecuted with due diligence to
its completion, subject to Force Majeure.

(f)            Subtenant
represents and covenants that it shall construct the Facilities and related
improvements and shall conduct its occupancy and use of the Subleased Premises
in accordance with the provisions of Title III of the Americans With
Disabilities Act (the “ADA”) and any similar state law by including, but not
limited to, modifying its policies, practices and procedures as may be
necessary to comply therewith, and providing auxiliary aids and services to
disabled persons as required thereunder.

SECTION 8.06.      Further
Construction and Building Restrictions:

(a)          All
Buildings and Structures shall be constructed and machinery and equipment
installed and insulated so that the ground vibration inherently and recurrently
generated therefrom is not perceptible without instruments at any point along
any of the boundaries of a Building or Structure.

(b)         No
windborne dust, spray, mist, smoke or other particulate matter may be emitted
(in the course of the disposal of trash or waste materials or otherwise)
outside of any Building, other than in accordance with applicable law.

(c)          No
fumes, odor, gas, vapor, acid or other substances shall be permitted to escape
or be discharged from any Building or structure or from the Land into the
atmosphere unless (a) it is in accordance with applicable law; and (b) it can
be demonstrated to the Board that doing so would not be detrimental to the
comfort, health, safety or welfare of any Person, or harmful to property or
vegetation.

(d)         Any
operation upon the Land which produces intense glare or heat shall be performed
only within an enclosed or screened area, and then only in such manner that the
glare or heat emitted will not be discernible from any boundaries.

(e)          No
Noxious or Offensive Activities shall be done or carried on upon the Land, and
no condition shall be maintained thereon, so as to render any portion of the
Land unsanitary, unsightly, unreasonably offensive or detrimental, or a
nuisance to any of the Campus or any user thereof.

(f)            Subtenant
shall keep or cause to be kept (a) the Land and all improvements thereon in a
safe, clean, neat and sanitary condition, (b) promptly remove all snow and ice
from the driveways, parking areas, sidewalks, and other paved surfaces thereon,
(c) all trash and rubbish on the Land in covered metal containers, (d) all
government, zoning, health, fire and police requirements, and (e) to remove at
its expense any rubbish of any character which may accumulate on the Land.
During construction of Improvements, the foregoing obligations shall include
keeping the construction site free of unsightly accumulations of rubbish and
scrap materials, and construction materials, trailers, shacks and the like
employed in connection with such construction.

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(g)         No
livestock, poultry, or other animals shall be kept on the Land except in
compliance with those regulations, policies, and practices adopted by FSU and
the USM, and federal and state regulations promulgated by the USDA governing
the use and treatment of animals in such activities. FSU shall retain the right
of inspection to enforce industry standards as necessary.

(h)         Subtenant
covenants that no dust sweepings, dirt or cinders may be emitted from the Land,
and no liquid, solid waste or other matter or substance may be discharged onto
the Land or from the Land into or onto any stream, river, or other body of
water or other portion of the Campus, or other land or body of water outside
the Campus, or into the air, if such action is contrary to applicable law or in
the opinion of the Board, such emission or discharge may adversely affect the
health, safety, comfort of, or intended property use by Persons within or near
the Campus. No waste or any substance or materials of any kind shall be
discharged into any public or private sewer serving any or all of the Campus in
violation of applicable law governing such discharge.

(i)             Except
as the Board may otherwise approve expressly and in writing, no road may be
created, exist or be used or improved, and no Structure may exist thereon, for
any purpose or in any manner, other than in conformance with the requirements
of the City of Frostburg Development Standards and the Design Guidelines.

(j)             Anything
contained in the provisions of the Master Ground Lease or this Sublease notwithstanding,
if the Land is now or at any time hereafter improved by any storm water
management pond or other facility required by applicable law, ordinance or
regulation for the management of the drainage and flow of storm water or for
sediment control then unless and until Allegany County or any other
governmental entity undertakes to do so, Subtenant shall at its expense cause
such pond or other facility, and any landscaped area relating to it, to be
regularly maintained and kept in a state of good condition and repair.

ARTICLE IX. 
SUBLESSOR OBLIGATIONS

SECTION 9.01.      Landlord
Covenants and Obligations.  Subject
to Subtenant’s performance of its obligations hereunder, Sublessor makes the
following assurances to Subtenant:

(a)           Sublessor
shall act reasonably to cooperate with Subtenant in executing such documents
and instruments as shall be required by governmental agencies to construct the
Facilities and related improvements, and to obtain the licenses and permits
required by the City to operate the Subleased Premises in accordance with the
permitted use thereof under Article V.

(b)           All
Campus common areas constructed by Sublessor shall comply with the provisions
of Title III of the Americans With Disabilities Act (the “ADA”) and any similar
Maryland state law.

SECTION 9.02.      Sublessor
Defaults.  If Sublessor fails to
perform any of its respective obligations or covenants under this Sublease,
Subtenant shall be entitled to enforce any one or more of the following rights
and remedies:

(a)           Subtenant
shall be entitled to require Sublessor to specifically perform its obligations
under this Sublease or restrain or enjoin Sublessor from continuing the
activities that constitute the default of Sublessor.

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(b)           Subtenant
shall be entitled to exercise all other rights and remedies available to
Subtenant under this Sublease or otherwise available to Subtenant at law or in
equity as a consequence of the Sublessor’s default.

ARTICLE X. 
ENCUMBRANCES

SECTION 10.01.    Mortgage
of Leasehold.  At any time and from time to time, Subtenant
may create a Permitted Mortgage without the prior consent of Sublessor.

SECTION 10.02.    Permitted
Mortgage Provisions.  To constitute a
Permitted Mortgage, any contractual lien, deed of trust, mortgage, assignment,
security interest or similar instrument must satisfy the terms and conditions
of Article XVII of Master Ground Lease, the terms and conditions of which are
incorporated by reference as if fully set forth herein, and shall meet the
following criteria:

(a)           Such
contractual lien, deed of trust, mortgage, assignment, security interest or
similar instrument is second, inferior and subordinate to the rights of
Sublessor in and to the Land pursuant to the terms of this Sublease.

(b)           The
Permitted Mortgagee shall not exercise any of its remedies thereunder,
including acceleration of the maturity of the indebtedness thereunder, for any
default or defaults of Subtenant thereunder or in connection with such
indebtedness, without first advising Sublessor in the manner provided in
Section 27.21 hereof and permitting Sublessor to cure any such default which is
capable of being cured.

(c)           Such
Permitted Mortgagee will accept a cure by the Sublessor of any such default
thereunder which is being cured, except that Sublessor shall not be required to
cure any such default and Sublessor shall have a cure period which shall
commence upon Notice to Sublessor of such default and shall be equal in length
to the applicable cure period, if any, as provided to Subtenant in such loan
documents.

(d)           All
payments so made and all things so done or performed by Sublessor shall be as
effective to prevent an acceleration of the maturity of the indebtedness, the
foreclosure of any liens securing payment thereof or the exercise of any other
remedies by such Permitted Mortgagee upon default by Subtenant thereunder as
the same would have been is paid, done or performed by Subtenant instead of by
Sublessor.  Sublessor shall not be or
become liable to any such Permitted Mortgagee as a result of the right and
option to cure any such default or defaults by Subtenant.

SECTION 10.03.    Mortgagee
Protective Provisions.  Sublessor
hereby agrees to the following for the benefit of any Permitted Mortgagee,
provided that Notice of such Permitted Mortgagee’s name and mailing address is
set forth in Section 27.21 hereof or given to Sublessor by Subtenant:

(a)           A Mortgagee in Possession of the
Improvements shall have, in addition to its rights hereunder as a Mortgagee,
all of the rights under the provisions of this Sublease and the Master Ground Lease
and applicable law which would otherwise be held by any such Owner or other
Responsible Person, subject to the operation and effect of anything to the
contrary contained in its Mortgage, and Sublessor, Landlord, and the Board
shall be entitled, in any matter arising under the provisions of this Sublease
or involving the exercise of such rights, to deal with such Mortgagee in
Possession as if it were the Owner or Responsible Person.

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(b)           Sublessor shall not terminate this
Sublease (or Subtenant’s rights hereunder) for any Event of Default without
first advising such Permitted Mortgagee in writing, of such Event of Default
and permitting such Permitted Mortgagee to cure such Event of Default on behalf
of Subtenant within sixty (60) days after Sublessor has given Notice to such
Permitted Mortgagee; provided, however, that during such sixty (60) day period,
Permitted Mortgagee takes action to cure such Event of Default but is unable,
by reason of the nature of the remedial action involved, to cure such Event of
Default within such period, Sublessor shall not terminate this Sublease for so
long as Permitted Mortgagee continues in good faith with due diligence and
without unnecessary delays to cure such Event of Default.  Further, if any Event of Default is not cured
within such sixty (60) day period, or such longer period as provided in the
immediately preceding sentence, or any extension thereof agreed to by
Sublessor, and (1) the Permitted Mortgagee shall have given the Notices
necessary to commence Foreclosure of the liens of its Permitted Mortgage prior
to the expiration of such sixty (60) day period (unless the Permitted Mortgagee
is enjoined or stayed from giving such Notices or exercising its right of
Foreclosure, in which event such sixty (60) day period shall be extended by the
period of such injunction or stay, but such sixty (60) day period shall not be
extended for a period of time in excess of 270 days), and (2) the purchaser at
the Foreclosure fully cures any Event of Default reasonably susceptible of
being cured by the purchaser at the Foreclosure within sixty (60) days after
such Foreclosure, then Sublessor will not terminate this Sublease (or Subtenant’s
rights hereunder) because of the occurrence of such Event of Default provided
that Foreclosure is diligently prosecuted. 
Sublessor shall accept amounts paid or actions taken by or on behalf of
any Permitted Mortgagee to cure any Event of Default.  Nothing under this Section 8.03(a) shall be
construed to obligate a Permitted Mortgagee to either cure any Event of Default
or Foreclose the liens and security interests under its Permitted Mortgage as a
consequence of an Event of Default, regardless of whether such Event of Default
or Incipient Default, is subsequently cured. 
If the Permitted Mortgagee or the purchaser at Foreclosure cures all
defaults reasonably susceptible of being cured by such Permitted Mortgagee or
purchaser, then all other defaults shall no longer be deemed to be Events of
Default hereunder.

(c)           Those
Events of Default, which by their very nature, may not be cured by the
Permitted Mortgagee shall not constitute grounds of enforcement of rights,
recourse, or remedies hereunder by Sublessor including termination of this
Sublease, if a Permitted Mortgagee either before or after a Foreclosure of its
Permitted Mortgagee (1) makes all payments and performs all obligations
hereunder capable of being performed by the Permitted Mortgagee and (2)
thereafter continues to comply with those provisions of this Sublease with
which, by their very nature, the Permitted Mortgagee may comply.
Notwithstanding anything to the contrary contained in this Sublease, the
Permitted Mortgagee shall not be responsible for or obligated to cure any Event
of Default or Incipient Default of Subtenant for which the Permitted Mortgagee
was not provided Notice within thirty (30) days after the occurrence of such
Event of Default or Incipient Default.

(d)           If
a Permitted Mortgagee enforces the rights and remedies pursuant to the terms of
its Permitted Mortgage (including Foreclosure of any liens or security
interests encumbering the estates and rights of Subtenant under this Sublease)
such enforcement shall not constitute an Event of Default or an Incipient
Default by Subtenant hereunder.

(e)           In
the event a Permitted Mortgagee should foreclose the liens and security
interests of its Permitted Mortgage and should, as a result of such
foreclosure, succeed to the rights of Subtenant hereunder, then such Permitted
Mortgage shall be subject to all the terms and conditions of this Sublease and
shall be entitled to all rights and benefits of this Sublease; provided,
however, that (1) such Permitted Mortgagee shall not be liable for any act or
omission of Subtenant; (2) such Permitted Mortgagee shall not be subject to any
offsets or defenses which Sublessor has or might have against Subtenant; (3)
such Permitted Mortgagee shall not be bound 

 77
 

by any amendment, modification, alteration, approval,
consent, surrender, or waiver under the terms of this Sublease made without the
prior written consent of such Permitted Mortgagee; (4) provided that nothing in
the foregoing provisions of this subsection shall be deemed in any way to
relieve any other Owner or Responsible Person of any such obligation, or of any
liability to such Mortgagee in Possession; and (5) upon the written request of
such Permitted Mortgagee, Sublessor shall reaffirm, in writing, the validity of
this Sublease, and that this Sublease is in full force and effect.  Sublessor acknowledges and agrees for itself
and its successors and assigns that this Sublease does not constitute a waiver
by any such Permitted Mortgage of any of its rights under any Permitted
Mortgage or in any way release Subtenant from its obligations to comply with
the terms, provisions, conditions, representations, warranties, agreements or
clauses of such Permitted Mortgage or any other such security interest.

(f)            Sublessor
will not agree to a material modification, alteration, amendment or the release
or surrender of this Sublease without the prior written consent of any
Permitted Mortgagee.

(g)           In
the event of the termination of this Sublease prior to the Expiration Date,
except by a Taking pursuant to Article XVIII hereof, Sublessor will serve upon
any Permitted Mortgagees Notice that this Sublease has been terminated together
with a statement of any and all sums which would have at that time been due
under this Sublease but for such termination and of all other Events of Default
or Incipient Defaults, if any, under this Sublease then known to Sublessor, whereupon
the Permitted Mortgagee holding the most senior Permitted Mortgage shall have
the option to obtain a new Sublease of the Premises by giving Notice to
Sublessor to such effect within sixty (60) days after receipt by such Permitted
Mortgagee of Notice of such termination, which new Sublease shall be (1)
effective as of the date of termination of this Sublease, (2) for the remainder
of the Term, and (3) at the same Rent and upon all of the agreements, terms,
covenants and conditions hereof.  Upon
the execution of such new Sublease, the Subtenant named therein shall pay any
and all sums which at the time of the execution thereof would be due under this
Sublease but for such termination and shall pay all unpaid expenses, including
reasonable attorneys’ fees, court costs and disbursements incurred by Sublessor
in connection with the Event of Default and such termination, the recovery of
possession of the Premises and the preparation, execution and delivery of such
new Sublease.

(h)           All
Notices required to be given hereunder by Sublessor to Subtenant shall also be
given concurrently to each Permitted Mortgagee, at the address designated in
writing to Sublessor.

(i)            The liability of the Permitted
Mortgagee under this Sublease shall be limited to the period during which the
Permitted Mortgagee may own the interest of the Subtenant hereunder.  Upon the Permitted Mortgagee’s assignment or
transfer of its rights and interests in and to this Sublease to a third party,
the Permitted Mortgagee shall have no further liability for any obligations
arising after such transfer date, which liability shall be borne by the
assignee or transferee.

SECTION 10.4.      Estoppel
Certificates.  Both parties
recognized they may find it necessary to establish to third parties, such as
accountants, banks, mortgagees, purchasers or the like the then current status
of performance hereunder. Either party, shall execute, acknowledge and deliver
to the other or to a designated third party a certificate evidencing, among
other reasonably requested items, whether or not:

(a)           This Sublease is in full force and
effect.

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(b)           This Sublease has been amended in any
way, and if amended, the date and nature of any such amendment.

(c)           The date to which rent, including
Percentage Rental, if any, has been paid.

The Sublessor shall use its best efforts to furnish
such certificate within ten (10) days after the requesting party makes such a
request.

ARTICLE XI. 
MAINTENANCE, REPAIR AND UTILITIES

SECTION 11.01.    Condition
of Premises.  Throughout the Term,
Subtenant shall maintain the Premises in a safe, clean and sanitary condition,
attractive in appearance and in reasonable repair, with normal wear and tear,
damage caused by casualty, condemnation, renovation and Force Majeure excepted,
and Subtenant shall conform to and comply in all material respects with all
applicable ordinances, regulations and codes of the City as the same may be
enforced.  Sublessor shall have the
right, but not the obligation, at reasonable times to make inspections of the
Premises.  Landlord shall have no
obligation or responsibility for such maintenance.

SECTION 11.02.    Inspection.  Upon five (5) days written notice to
Subtenant and accompanied by the Manger, Sublessor, at Sublessor’s option,
shall cause to be made an annual inspection of the Premises to ascertain the
quality of maintenance being observed by Subtenant.

SECTION 11.03.    Alterations.  Subject to the terms of Section 7.01 of this
Sublease and further subject to the terms and conditions of the Master Ground
Lease and the University and the Board’s approval, which approval will not be
unreasonably withheld, subtenant shall have the right, from time to time, to
make exterior additions, alterations and changes (sometimes referred to
collectively as “Alterations”) in or to the Facilities (which term shall, when
used in this Section 11.03, include any replacement or substitution thereof),
provided that no Event of Default shall exist by Subtenant in the performance
of any of Subtenant’s covenants or agreements in this Sublease, subject however,
to the following:

(a)           No
Alterations shall be made which would impair the structural soundness of the
Facilities.

(b)           No
Alterations shall be undertaken until Subtenant shall have procured and paid
for, so far as the same may be required from time to time, all applicable
permits, licenses and authorizations of the City and all required consents of
Permitted Mortgages having a first priority interest in or lien upon the
Premises.  Sublessor shall join, but without
expense to Sublessor, in the application for such applicable permits, licenses
or authorizations as the City may require.

(c)           Any
alterations shall be commenced and completed within a reasonable time (subject
to Force Majeure) and in a good and workmanlike manner and in substantial
compliance with the Design Guidelines, all applicable permits, licenses and
authorizations and building codes or laws issued or promulgated by the City, as
the same may be enforced.

(d)           If
any involuntary liens for labor and materials supplied or claimed to have been
supplied to the Premises shall be filed, Subtenant shall pay or bond around
such liens to Sublessor’s reasonable satisfaction or otherwise obtain the
release or discharge thereof at least sixty (60) days prior to the time that
any interest in the Premises Facilities may become subject to forced sale with
respect to such involuntary liens.

 79
 

(e)           Worker’s
compensation insurance or employer’s excess indemnity and occupational accident
medical expense coverage shall be maintained in force covering all persons
employed in connection with the development and construction of the Premises
with respect to whom death or bodily injury claims could be asserted against
Sublessor, Subtenant or the Premises.

SECTION 11.04.    Damage
to Improvements.

(a)           Subject
to the terms and conditions of Master Ground Lease and subject to the other
terms of this Sublease, in the event any portions of the Facilities is damaged
by fire or otherwise, regardless of the extent of such damage or destruction,
within ninety (90) days following the date of such damage or destruction,
Subtenant shall commence the work of repair, reconstruction or replacement of
the damaged or destroyed building or improvement and prosecute the same with
reasonable diligence to completion, so that the Facilities shall, at the sole
expense of Subtenant, be restored to substantially the same size, function and
value as the Facilities existing prior to the damage; provided, however, that
if any available insurance proceeds (after payment of all or any portion of
such insurance proceeds towards amounts owed under any Permitted Mortgage) are
insufficient, in the reasonable judgment of Subtenant, to permit restoration in
accordance with the terms of this Sublease, or if payment of the insurance
proceeds is contested or not settled promptly for any reason, then Sublessor
shall grant an appropriate extension of the time for commencing repairs to
allow Subtenant to obtain reasonable replacement financing or to obtain the
insurance proceeds.  If Subtenant shall
in good faith be unable to (i) obtain reasonable replacement financing to
restore the Facilities to substantially the same size, function, and value as
the Facilities existing prior to the damage or (ii) obtain the insurance
proceeds, then Subtenant may terminate this Sublease by Notice to
Sublessor.  In the event of termination
under this Section 9.05, this Sublease shall terminate ten (10) days after the
date of such Notice with the same force and effect as is such date were the date
herein fixed for the expiration of the Term, and the Rent shall be apportioned
and paid to the time of such termination. 
Sublessor shall have no claim to any portion of the insurance proceeds
paid as a consequence of casualty affecting the Facilities.

(b)           Anything
in this Sublease to the contrary notwithstanding, in the event of a fire or
other casualty to the Improvements during the last five (5) years of the Term
hereof, resulting in damage or destruction, the cost for repair of which
exceeds fifty percent (50%) of the appraised value of the Base Building
Improvements (which cost of repair and appraised value shall be determined by
an M.A.I. Appraiser in accordance with the procedure set forth in Article
XVIII), Sublessor and Subtenant each shall have the right to terminate this
Sublease. In order to exercise this option to terminate, the electing party
shall deliver a written notice to the other party within twenty (20) days of
the damage or destruction.  Such notice
shall specify the electing party’s intent to terminate the Sublease and appoint
an M.A.I. Appraiser in accordance with Article XVIII.  The provisions of Article XVIII shall then
govern, and if the Appraiser(s) determines that the cost of repair exceeds
fifty percent (50%) of the appraised value of the Base Building Improvements, then
(a) the Term hereof shall cease and expire as of the one hundred twentieth
(120th) day following the occurrence of the damage or destruction with the same
force and effect as if such date were the original expiration date hereof, (b)
the Rent shall cease and terminate as of such one hundred twentieth (120th)
day, and (c) Subtenant shall forthwith (i) assign to Sublessor, in form
satisfactory to Sublessor, all of Subtenant’s right, title and interest in and
to any insurance proceeds for the Improvements not yet received, and (ii) have
the option to either deliver all insurance proceeds for the Base Building
Improvements theretofore received to Sublessor as Sublessor’s sole and
exclusive property or return the property to the original conditions of the Site
prior to construction of the Project excluding original Forestation.

 80
 

SECTION 11.05.    Utilities.

(a)           Subtenant
shall pay or cause to be paid any and all charges, including any connection
fees, for water, heat, gas, electricity, sewers and any and all other utilities
used on the Premises throughout the Term.

(b)           Sublessor
shall be obligated to ensure that the water pressure available to the perimeter
of the Land meets all applicable laws and regulations, including without
limitations, fire safety codes.

ARTICLE XII. 
CERTAIN LIENS PROHIBITED

SECTION 12.01.    No
Mechanics’ Liens.  Except as
permitted in Section 12.02 hereof, Subtenant shall not suffer or permit any
mechanics’ liens or materialmen’s liens to be enforced against Sublessor’s
Interest nor against Subtenant’s leasehold
interest in the Premises by reason of a failure to pay for any work, labor,
services, or materials supplied or claimed to have been supplied to Subtenant
or to anyone holding the Premises or any part thereof through or under
Subtenant.

SECTION 12.02.    Release
of Recorded Liens.  If any such
mechanics’ liens or materialmen’s liens shall be recorded against the Premises,
Subtenant shall cause the same to be released of record or, in the alternative,
if Subtenant in good faith desires to contest the same, Subtenant shall be
privileged to do so, but in such case Subtenant hereby agrees to indemnify and
save Sublessor harmless from all liability for damages occasioned thereby and
shall, in the event of a judgment of foreclosure on said mechanics’ or
materialmen’s lien, cause the same to be discharged and released prior to the
execution of such judgment.  In the event
Sublessor reasonably should consider Sublessor’s Interest endangered by any
such liens and should so notify Subtenant and each Permitted Mortgagee and
Subtenant or any Permitted Mortgagee should fail to provide adequate security
for the payment of such liens, in the form of a surety bond, cash deposit or
cash equivalent, or indemnity agreement reasonably satisfactory to Sublessor within
thirty (30) days after such Notice, then Sublessor, at Sublessor’s sole
discretion, may discharge such liens and recover from Subtenant immediately as
additional rent under this Sublease the amounts to be paid.

SECTION 12.03.    Inspection.  The University has the right to inspect the
Ground Sublease Premises subject to the terms of the Master Ground Lease the
terms of which are hereby incorporated by reference.

ARTICLE XIII. 
OPERATION AND MANAGEMENT OF FACILITIES

SECTION 13.01.    Management
Agreements.  Subtenant shall be
responsible for the operation of the Premises. 
Subtenant shall be permitted to manage the operations of the Premises
itself or, upon prior agreement with the University, to enter into a Management
Agreement, satisfactory to Sublessor, with a manager (“Manager”) approved by
the Sublessor, such approval not to be unreasonably withheld or delayed.  The term “Manager” as used herein shall refer
to Subtenant if Subtenant elects to manage the operations or to the manager
hired by Subtenant and approved by the Sublessor, as appropriate.  Subject to the approval of the University,
Sublessor hereby approves Academic Privatization of Maryland, LLC (“Academic
Privatization”), its affiliate or such comparable management company doing
business in Maryland, as the initial Manager of the Premises.  Sublessor hereby approves the University or
its affiliate or any combination of Academic Privatization and the University
as the initial 

 81
 

Managers of the Premises.  Each Management Agreement shall provide for the
operation of the Premises without cost or expense to Sublessor.

SECTION 13.02.    Books
and Records.  Subtenant shall keep,
or cause to be kept, accurate, full and complete books and accounts showing
exclusively the assets and liabilities, operations, transactions and the
financial condition of the Facilities. 
All financial statements shall be accurate in all material respects,
shall present fairly the financial position and results of the Facilities’
operations and shall be prepared in accordance with generally accepted
accounting principles consistently applied. 
The books, accounts and records of the Facilities shall be maintained at
the principal office of Subtenant.

ARTICLE XIV. 
INSURANCE AND INDEMNIFICATION

SECTION 14.01.    Indemnity.  Subject to the terms of Section 14.09,
Subtenant shall indemnify and hold harmless Sublessor and its successors (“Indemnified
Parties”), from all claims, suits, actions and proceedings (“Claims”)
whatsoever which may be brought or instituted on account of or growing out of
any and all injuries or damages, including death, to persons or property
relating to the use or occupancy of the Premises (including without limitation
the construction, maintenance or operation of the Facilities from and after the
date hereof), and all losses, costs, penalties, damages and expenses, including
but not limited to attorneys’ fees and other costs of defending against,
investigating and settling the Claims, provided, however, that the indemnity
shall not apply with respect to claims arising from injuries or damages caused
by the negligence or willful misconduct of Sublessor, its agents or
employees.  Subtenant shall assume on
behalf of the Indemnified Parties and conduct with reasonable diligence and in
good faith the defense of all Claims against the Indemnified Parties, whether
or not Subtenant is joined therein; provided, however, without otherwise
relieving Subtenant of its obligations under this Sublease, the Indemnified
Parties, at their election and upon Notice to Subtenant, may, at the
Indemnified Parties’ sole cost and expense, defend or participate in the
defense of any or all of the Claims with attorneys and representatives of their
own choosing.  Except as otherwise stated
herein, maintenance of the insurance referred to in this Sublease shall not
affect Subtenant’s obligations under this Section 14.01 and the limits of such
insurance shall not constitute a limit on Subtenant’s liability under this
Section 14.01; provide, however, that Subtenant shall be relieved of its
aforesaid obligation of indemnity to the extent and only to the extent of the
amount actually recovered from one or more of the insurance carriers of
Subtenant (or recovered in respect of any insurance carried by Sublessor) and
either (i) paid to Sublessor or (ii) paid for Sublessor’s benefit in reduction
of any liability, penalty, damage, expense or charge imposed upon Sublessor in
connection with the Claims.  Sublessor
covenants and agrees that Subtenant shall have the right to contest the validity
of any and all such Claims of any kind or character and by whomsoever claimed,
in the name of Subtenant or Sublessor, as Subtenant may deem appropriate,
provided that the expenses thereof shall be paid by Subtenant, or Subtenant
shall cause the same to be paid by its insurer.

SECTION 14.02.    Sublessor
not Liable.  Sublessor shall not be
liable for any damage to either Persons or property sustained by Subtenant or
other Persons and caused by any act or omission of any occupant of the
Facility, except to the extent provided by the applicable provisions, if any,
of the Annotated Code of Maryland.

SECTION 14.03.    Insurance.  Subtenant shall at all appropriate times
maintain, with respect to the Premises, for the Term, insurance issued by a
company or companies qualified, permitted or admitted to do business in the
State of Maryland, in such amounts as may be required by the provisions of
Article XVIII of the Master Ground Lease or the following, whichever shall
provide the greatest coverage:

 82

 

	
  

  	
   

  	
  TYPE

  	
   

  	
   

  	
   

  	
  AMOUNT

  
	
  (1)

  	
   

  	
  Comprehensive General (Public) liability - to
  include coverage for the following where the exposure exists: 

  	
   

  	
  Combined Single limit for Bodily injury and Property
  Damage in an amount acceptable to the Sublessor’s Representative, not to
  exceed $5,000,000.

  
	
   

  	
   

  	
  (A)

  	
   

  	
  Premises/Operations  
  

  	
   

  	
   

  
	
   

  	
   

  	
  (B)

  	
   

  	
  Independent Contractors

  	
   

  	
   

  
	
   

  	
   

  	
  (C)

  	
   

  	
  Products/Completed Operations

  	
   

  	
   

  
	
   

  	
   

  	
  (D)

  	
   

  	
  Personal Injury 

  	
   

  	
   

  
	
   

  	
   

  	
  (E)

  	
   

  	
  Contractual Liability (F)Explosion, collapse and
  underground property damage

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (2)

  	
   

  	
  Property Insurance - for physical damage to the
  property of Subtenant including improvements and betterments to the Land.

  	
   

  	
  Coverage being for 100% of the replacement cost of
  the Facilities.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (3)

  	
   

  	
  Builder’s Risk Insurance - all risk of physical loss
  during the term of the construction contract and until the Facilities are
  substantially completed.

  	
   

  	
  Coverage being 100% of the replacement cost of the
  Facilities.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (4)

  	
   

  	
  Workman’s Compensation Insurance.

  	
   

  	
  Insuring against and satisfying Subtenant’s
  obligations and liabilities under the Workman’s Compensation laws of
  Maryland, as amended from time to time.

  
									

 

SECTION 14.04.    Sublessor Additional Insured.  Subtenant agrees that with respect to the
above required insurance, Sublessor, the University, the University System of
Maryland, the Board of Regents of the USM, and the State of Maryland shall:

(a)           Be
named on the property insurance policy and comprehensive general liability
policy as additional insured or an insured, as its interest may appear.

(b)           Be
provided with sixty (60) days advance Notice, in writing, of cancellation or
material change in coverage.  If any
insurance policy provides that the insurer will give such Notice, then
Subtenant shall not be obligated to do so with respect to such policy.

(c)           Be
provided with Certificates of Insurance evidencing the above-required insurance
at the time the policies are required to be obtained and thereafter with
certificates evidencing renewals or replacements of said policies of insurance
at least thirty (30) days prior to the expiration or cancellation of any such
policies.

(d)           Subtenant
agrees to promptly endorse insurance checks or otherwise release insurance
proceeds, provided no Event of Default is continuing hereunder. Sublessor,
shall regardless of the existence of an Event of Default, promptly endorse
insurance checks or otherwise release insurance proceeds payable to (or to be
held by) a Permitted Mortgagee in accordance with its Permitted Mortgage.

SECTION 14.05.    Type
of Policies.  All policies of
insurance which Subtenant is obligated to maintain hereunder shall be purchased
only from insurers who are licensed to do business in the 

 83
 

State of Maryland, comply with the requirements
thereof, and who carry A.M. Best Company rating of “A” or “A+”.  No insurance required to be maintained by
Subtenant by this Article shall be subject to more than One Thousand Dollars
($1,000.00) deductible limit without Sublessor’s prior written consent.

SECTION 14.06.    Additional
Insurance.  Sublessor shall review
Subtenant’s required insurance as stated herein at the time of renewal of the
said policies or at the time of a material change, and Sublessor reserves the
right to require reasonable additional limits or coverage.  Subtenant agrees to comply with any such
reasonable request by Sublessor.

SECTION 14.07.    Blanket
Policies.  If any blanket general
insurance policy of Subtenant complies with the requirements of this Article
XII, such insurance shall fulfill the requirements set forth herein.  Any Permitted Mortgagee may be named as an
insured or an additional insured on any policies as its interest may appear.

SECTION 14.08.    Adequacy
of Coverage.  Sublessor, its agents
and employees make no representation that the limits of liability specified to
be carried by Subtenant pursuant to this Article XII are adequate to protect
Subtenant.  If Subtenant believes that
any of such insurance Coverage is inadequate, Subtenant will obtain, at
Subtenant’s sole expense, such additional insurance coverage as Subtenant deems
adequate.

SECTION 14.09.    Waiver
of Subrogation.  Notwithstanding
anything to the contrary, each of Sublessor and Subtenant hereby releases the
other from any loss or damage to property caused by fire or any other perils
insured through or under either by way of subrogation or otherwise for any loss
or damage to property caused by fire or any other perils insured in policies of
insurance covering such property, even if such loss or damage shall have been
caused by the fault or negligence of the other party, or anyone for whom such
party may be responsible; provided, however, that this release shall be
applicable and in force and effect only with respect to the loss or damage
occurring during such times as the releasor’s policies shall contain a clause
of endorsement to the effect that any such release shall not adversely affect
or impair said policies or prejudice the right of the releasor to recover
thereunder and then only to the extent of the insurance proceeds payable under
such policies.  Each Sublessor and
Subtenant agrees that it will request its insurance carriers to include in its
policies such a clause or endorsement. 
If extra cost shall be charged therefor, each party shall advise the
other thereof and of the amount of the extra cost, and the other party, at its
election, may pay the same, but shall not be obligated to do so.

 84
 

ARTICLE XV. 
TERMINATION, DEFAULT AND REMEDIES

SECTION 15.01.    Events
of Default.  Any one of the following
events shall be an “Event of Default” by Subtenant under this Sublease:

(a)           Subtenant
shall fail to pay any sum required to be paid under the terms and provisions of
this Sublease and such failure shall not be cured within thirty (30) days after
receipt of Notice from Sublessor of such failure.

(b)           Subtenant
shall fail to perform any other covenant or agreement, other than the payment
of money, to be performed by Subtenant under the terms and provisions of this
Sublease and such failure shall not be cured within sixty (60) days after
receipt of Notice from Sublessor of such failure; provided that if, during such
sixty (60) day period, Subtenant takes action to cure such failure but is
unable, by reason of the nature of the work involved, to cure such failure
within such period and continues such work thereafter diligently and without
unnecessary delays, such failure shall not constitute an Event of Default
hereunder until the expiration of such additional time following such sixty
(60) day period as may be reasonably necessary to complete the cure of such failure.

SECTION 15.02.    Right
to Expel.  The Permitted Mortgagee
shall have the right to expel Subtenant upon the occurrence of an Event of
Default and passing of any applicable cure periods, and assume the position of
Subtenant with all rights and duties under this Sublease.

SECTION 15.03.    Sublessor’s
Rights Upon Default.  Subject to the
rights of the Permitted Mortgagees under Article X upon the occurrence and
during the continuance of an Event of Default past any applicable cure period,
Sublessor may at its option declare this Sublease and all rights and interests
created by it to be terminated, may seek any and all damages occasioned by the
Event of Default, or may seek any other remedies available at law or in equity.

SECTION 15.04.    Right
to Relet Premises.  Upon Sublessor’s
exercise of the election to terminate this Sublease, Sublessor may take
possession of the Premises and relet the same for the remainder of the Term
upon such terms as Sublessor is able to obtain (for the account of Subtenant,
who shall make good any deficiency as such occurs.  Any termination of this Sublease as herein
provided shall not relieve Subtenant from the payment of any sum or sums that
shall then be due and payable to Sublessor hereunder, or any claim for damages
then or theretofore accruing against Subtenant hereunder, and any such
termination shall not prevent Sublessor from enforcing the payment of any such
sum or sums or from claiming damages by any remedy provided for by law, or form
recovering damages from Subtenant for any Event of Default.)

SECTION 15.05.    Cure.  Notwithstanding anything in this Sublease to
the contrary, upon the occurrence of an Event of Default, the Sublessor shall
not exercise any right or remedy which it holds under any provision of this
Sublease or under applicable law unless or until:

(a)           The
Sublessor has given Subtenant notice of the Event of Default.

(b)           If
the Event of Default consists of the failure to pay money, Subtenant has failed
to pay the same as of the end of the 20th calendar day following the date notice was
received by the Subtenant.

(c)           In
connection with any other Event  of
Default, Subtenant has failed to proceed to cure the same within thirty (30)
days (unless otherwise stated in this Sublease) after notice was 

 85
 

received by Subtenant and to continue in good faith to
prosecute cure diligently and continuously thereafter; provided that no notices
shall be required and Subtenant shall not be entitled to any grace period in
the event of Subtenant’s Bankruptcy.

ARTICLE XVI. 
IMPROVEMENTS

SECTION 16.01.    Title
to Improvements.

(a)           Subject
to the rights of the University as set forth in the Master Ground Lease, during
the Term, ownership of the Facilities and related improvements constructed by
the Subtenant shall be in Subtenant. Upon the termination of the Sublease,
ownership of the Facilities and related improvements constructed by or on
behalf of Subtenant shall be in Sublessor. 
Throughout the Term of this Sublease, any liens, encumbrances, mortgages
or claims of third parties including construction lenders and permanent lenders
with respect to any property which may be deemed owned by the Subtenant,
including the Facilities and any part thereof, shall be expressly subordinate
and subject to the rights of Sublessor in the reversionary fee and the
ownerships rights of the Sublessor in the Facilities and related improvements
as stated under this Section 16.01.

(b)           Upon
the termination of this Sublease or Sublease Term, Subtenant will promptly quit
and surrender the Premises including the Facilities and related improvements
constructed by Subtenant in good order, condition and repair, ordinary wear and
tear commensurate with the then age of the Facilities and damage by
condemnation and casualty excepted.

SECTION 16.02.    Personal
Property.  All personalty and
equipment used in connection with the operation of the Project but which does
not constitute a Project fixture (the “Facility Equipment”) shall be and remain
the property of Subtenant, but shall remain subject to the terms of this
Sublease.  Notwithstanding anything
contained herein to the contrary, Sublessor shall not have and does hereby
expressly waive and relinquish any lien or claim for lien, whether granted by
constitution statute, rule of law, or contract relating to the Facility Equipment,
whether located in or about the Premises, or otherwise, for any purpose
whatsoever, including securing the payment of Rent.

ARTICLE XVII. 
FACILITIES PROMOTION

SECTION 17.01.    Sublessor.  Sublessor and the University shall each use
its best efforts to actively promote and market the Facilities as an integral
part of the Allegany Business Center and University community.

Sublessor and the University on a continuing basis
shall:

(a)           Forward
all eligible on-campus research inquiries to Subtenant.

(b)           Allow
Subtenant to use a reasonable number of signs, flags and banners on the Campus
and University grounds to market the Facilities, consistent with University
posting policy.

(c)           Provide
tours of the Facilities, in conjunction with Subtenant, for prospective new
occupants.

(d)           Actively
promote the Facilities in conjunction with the Sublessor’s and University’s
promotional and recruiting efforts.

 86
 

(e)           Incorporate
information about the Facilities in appropriate Sublessor and University
publications.

(f)            As
appropriate permit all Allegany Research Properties occupants to participate in
University-sponsored orientation programs and other similar programs and
facilities of the University generally made available to employees of other
University research facilities.

(g)           Permit
the management staff for the Facilities to participate in all appropriate
training programs and other similar programs made available to the staff of
other University research facilities.

SECTION 17.02.    Subtenant.  Subtenant shall cooperate in promoting and
marketing the Facilities by causing the following actions to be taken, all at
Subtenant’s cost:

(a)           Prepare
a research brochure which reflects the floor plans, amenities and benefits of
the Facilities.

(b)           Maintain
an appropriate on-site leasing office at the Premises, which initially shall be
operated by the University or its affiliate.

(c)           Prepare
four (4) 20” by 30” color, mounted renderings of the Facilities for use by the
University in its promotion and marketing of the Facilities.

(d)           Provide
additional materials which the Sublessor or University might reasonably
determine to be appropriate to market the Facilities.

ARTICLE XVIII. 
CONDEMNATION

SECTION 18.01.    Condemnation
of Entire Premises.  Subject to the
terms, provisions, and conditions of the Master Ground Lease, upon the
permanent Taking of the entire Premises, the Term of this Sublease shall
terminate and expire as of the date of such Taking, and both Subtenant and
Sublessor shall thereupon be released from any liability thereafter accruing
hereunder.  Subtenant and the Permitted
Mortgagee shall each receive Notice of any proceedings relating to a Taking and
shall even have the right to participate therein.

SECTION 18.02.    Partial
Condemnation.

(a)           Subject
to the other terms of this Sublease, if there is a partial condemnation of the
Premises, Subtenant shall commence the work of repair, reconstruction or
replacement of the damaged or destroyed building or improvement and prosecute
the same with reasonable diligence to completion, so that the Facilities shall,
at the sole expense of Subtenant, be restored to substantially the same
function and value as the Facilities existing prior to the damage; provided,
however, that if any available condemnation award (“Award”) (after payment of
all or any portion of such Award towards amounts owed under any Permitted
Mortgage) are insufficient, in the reasonable judgment of Subtenant or its
Permitted Mortgagee, to permit restoration in accordance with the terms of this
Sublease, or if payment of the Award is contested or not settled promptly for
any reason, then Sublessor shall grant an appropriate extension of the time for
commencing repairs to allow Subtenant to obtain reasonable replacement
financing or to obtain the Award.

 87
 

(b)           All
or any portion of the Award payable to Subtenant as a consequence of a Taking
affecting the Premises shall, if a Permitted Mortgagee then exists, be
deposited with and disbursed by the Permitted Mortgagee (holding the Permitted
Mortgage with the most senior lien priority) pending completion of the
restoration of the Premises.

(c)           Notwithstanding
the foregoing provisions of this Section 18.02, if the Award payable as a
consequence of a Taking (after payment of all or any portion of such Award
towards amounts owned under any Permitted Mortgage) is insufficient, in the
reasonable judgment of Subtenant or its Permitted Mortgagee, to permit such
restoration Subtenant, with the prior written approval of the Permitted
Mortgagee (a copy of which approval must be delivered to Sublessor), may
terminate this Sublease by Notice to Sublessor.

(d)           In
the event of termination under this Section 18.04, the Term of this Sublease
shall terminate ten (10) days after the date of such Notice with the same force
and effect as if such date were the date herein fixed for the expiration of the
Term, and the Rent shall be apportioned and paid at the time of such
termination.

SECTION 18.03.    Payment
of Awards.  Upon the Taking of all or
any portion of the Premises (a) Subtenant shall be entitled (free of any claim
by Sublessor) to the Award for the value of its interests in the Premises and
its rights under this Sublease and damages to any of its other property
together with any other compensation or benefits specifically awarded to
Subtenant’s business, and (b) Sublessor shall be entitled (free of any claim by
Subtenant) to the Award for the value of Sublessor’s interest (such value to be
determined as if this Sublease were in effect and continuing to encumber
Sublessor’s interest such that calculation of 
Sublessor’s allocable share of the Award shall be based on the value of
the Premises as if it were unimproved).

ARTICLE XIX. 
ASSIGNMENT, SUBLETTING AND

TRANSFERS OF SUBTENANT’S INTEREST

SECTION 19.01.    Assignment
by Subtenant.

(a)           Subject
to the terms and conditions of the Master Ground Lease, Subtenant is not
authorized to sell or assign Subtenant’s leasehold
estate in its entirety or for any portion of the unexpired Term (other than a
sale or assignment to a Permitted Assignee) without first obtaining the consent
of Sublessor and the University, which consent will not be unreasonably
withheld or delayed, and any such assignment made or given without first
obtaining Sublessor’s consent shall be null and void.  Sublessor hereby agrees that its decision to approve
or disapprove a proposed assignee or purchaser of the Subtenant’s interest in
the Premises and leasehold estate
created hereby shall be based solely upon the financial and property management
capabilities of such proposed assignee or purchaser.

(b)           It
is specifically provided however that the foregoing paragraph 19.01 shall not
apply to any assignment by Subtenant to Subtenant’s Mortgagee or to a purchaser
at the any foreclosure sale other than Subtenant.

SECTION 19.02.    Subletting.  Except for subleases to Space Tenants and
Permitted Assignees, and except as otherwise set forth in this Sublease,
Subtenant is not authorized to sublet the leasehold
estate without the Sublessor’s prior written consent.  A sublease to any Person for the purpose of
providing services, including without limitation laundry and janitorial, to the
Facilities shall be deemed approved by Sublessor.

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SECTION 19.03.    Application
to Permitted Mortgagees.  Nothing
contained in this Article XIX shall be construed to apply to or otherwise limit
the rights of Subtenant to mortgage (or assign for collateral) its leasehold estate and other right under
this Sublease to a Permitted Mortgagee, as to which Article VIII shall govern.

SECTION 19.04.    Transfers
of Mortgage of Sublessor’s Interest. 
Sublessor shall not subject its interest in the Premises to any
mortgage, deeds of trust, or lien.

SECTION 19.05.    Nondisturbance of Space Tenants.  Sublessor, by execution of this Sublease,
agrees that if Sublessor or any other party on Sublessor’s behalf takes
possession of the Premises, neither Sublessor nor such other party shall affect
or disturb any Space Tenant’s right to possession of the Premises in the
exercise of Sublessor’s rights so long as the Space Tenant is not then in
default (beyond the applicable notice and cure period) under the Space
Sublease.  Upon receipt of request by
Subtenant, Sublessor will execute such documentation, in form and content
reasonably acceptable to Sublessor, necessary to evidence same.  If Sublessor or any other party succeeds to
the interest of Subtenant under this Sublease, or if Sublessor exercises the
other rights granted to it herein, each Space Tenant shall be bound to
Sublessor or such other party under all of the terms, covenants and conditions
of its Space Sublease, and each Space Tenant agrees that it shall attorn to,
and be liable to and recognize Sublessor or such other party as the Space
Tenant’s new landlord for the balance of the term of its Space Sublease, upon
and subject to all the terms and conditions thereof, and the Space Sublease and
the rights of the Space Tenant thereunder shall continue in full force and
effect as a direct Sublease between the Space Tenant and Sublessor or such
other party upon all the terms, covenants, conditions and agreements set out in
the Space Sublease, and the rights of the Space Tenant thereunder shall not be
terminated or disturbed except in accordance with the terms and provisions of
the Space Sublease, provided, however, that if Landlord becomes a landlord
under a Space Sublease or the Sublessor under this Sublease, Landlord shall not
be bound by any arbitration provision of such Space Sublease or this Sublease,
other than with respect to failure to deliver approvals relating to design or
construction or to Space Tenants, in which event Subtenant shall not be bound
by such arbitration provisions, except to the extent Landlord is bound as set
forth in this sentence.  The Space Tenant
shall thereafter make the rental and other payments set out in the Space
Sublease as instructed by Sublessor or such other party.  Such attornment shall be effective and
self-operative without the execution of any further instrument by Sublessor and
the Space Tenant immediately upon the succession by Sublessor or such other
party to the interest of Subtenant under the Space Sublease.  The provisions of this Section 11.3 shall not
apply to any Subtenant of all or substantially all of the Premises or the
Improvements.

ARTICLE XX. 
COMPLIANCE CERTIFICATES

SECTION 20.01.    Sublessor’s
Compliance.  Subtenant agrees, at any
time and from time to time upon not less than thirty (30) days prior Notice by
Sublessor, to execute, acknowledge and deliver to Sublessor or to such other
party as Sublessor shall request, a statement in writing certifying (a) that
this Sublease is unmodified and in full force and effect (or if there has been
any modification, that the same is in full force and effect as modified and
stating each modification); (b) to the best of its knowledge, whether or not
there are then existing any offsets or defenses against the enforcement of any
of the terms, covenants or conditions hereof upon the past of Subtenant to be
performed (and if so specifying the same; (c) the dates to which the Rent and
other charges have been paid; and (d) the dates of commencement and expiration
of the Term, it being intended that any such statement delivered pursuant to
this Section 20.01 may be relied upon by any prospective purchaser of Sublessor’s
interest.

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SECTION 20.02.    Subtenant’s
Compliance.  Sublessor agrees, at any
time and from time to time, upon not less than thirty (30) days prior Notice by
Subtenant, to execute, acknowledge and deliver to Subtenant a statement in
writing addressed to Subtenant or to such other party as Subtenant shall
request, certifying that, to the best of its knowledge, information, and
belief:  (a) this Sublease is unmodified
and in full force and effect (or if there has been any modification that the
same is in full force and effect as modified and stating each modification); (b)
the dates to which the Rent and other charges have been paid; (c) whether an
Event of Default (or, to the best of its knowledge, an Incipient Default) has
occurred and is continuing hereunder (and stating the nature of any such Event
of default or Incipient Default); and (d) the dates of commencement and
expiration of the Term, it being intended that any such statement delivered
pursuant to this Section 20.02 may be relied upon by any prospective assignee,
or SubSublease of this Sublease, any Permitted Mortgagee or by any assignee or
prospective assignee of any Permitted Mortgage or by any undertenant or
prospective  undertenant of the whole or
any part of the Premises.

ARTICLE XXI. 
TAXES AND FEES

SECTION 21.01.    Payment
of Taxes.  Subtenant shall pay as a portion of Annual Expenses, and, upon request
by Sublessor, shall provide evidence of payment to the appropriate collecting
authorities, all federal, state and local taxes and fees levied upon the
Improvements, upon the business conducted on the Premises, or upon any of
Subtenant’s property used in connection therewith; and shall maintain in
current status all federal, state and local licenses and permits required for
the operation of the business conducted by Subtenant.  Sublessor shall pay, and upon request
by Subtenant or Permitted Mortgagee, shall provide evidence of payment to the
appropriate collecting authorities, all federal, state and local taxes and fees
associated with the Land.  Subtenant may
pay any of the above items in installments if payments may be so made without
penalty other than the payment of interest. 
The obligations of Sublessor and
Subtenant to pay taxes and fees under this Section 21.01 shall apply only to
the extent that Sublessor or Subtenant are not exempt form paying such
taxes and fees and to the extent that such taxes and fees are not otherwise
abated.

SECTION 21.02.    Contested Tax Payments. 
Subtenant shall not be required to pay, discharge or remove any such
taxes or assessments so long as Subtenant is contesting the amount or validity
thereof by appropriate proceeding which shall operate to prevent or stay the
collection of the amount so contested. 
Subtenant hereby agrees to indemnify and save Sublessor harmless from
all liability for damages occasioned thereby and shall, in the event of
judgment of foreclosure on any lien arising in respect to such contested
amounts, cause the same to be discharged and removed prior to the execution of
such judgment.  Sublessor shall cooperate
with Subtenant in completing such contest and Sublessor shall have no right to
pay the amount contested during the contest. 
Upon the termination of such proceeding, Subtenant shall deliver to
Sublessor proof of the amount due as finally determined and proof of payment
thereof.  Sublessor, at Subtenant’s
expense, shall join in any such proceeding if any law shall so require.

SECTION 21.03.    Expenses of Contest.  All costs and expenses of any contest of any
tax or fee pursuant to this Article XXI by Subtenant shall be paid by
Subtenant.

ARTICLE XXII. 
FORCE MAJEURE

SECTION 22.01.    Discontinuance
During Force Majeure.  Whenever a
period of time is herein prescribed for action to be taken by Subtenant or a
Permitted Mortgagee, Subtenant shall not be liable or responsible for, and
there shall be excluded from the computation for any such period of time, any
delays due to Force Majeure, Sublessor shall not be obligated to recognize any
delay caused by Force Majeure unless Subtenant shall, within twenty (20) days
after 

 90
 

Subtenant is aware of the existence of an event of
Force Majeure, notify Sublessor thereof in writing, certified mail, return
receipt requested.  One Notice shall be
sufficient per occurrence.  The foregoing
notwithstanding, if any such delay is caused by or attributable to Sublessor,
there shall be no more time limit on the period of enforced delay and Subtenant
shall not be required to give Notice to Sublessor hereunder.

ARTICLE XXIII. 
HAZARDOUS MATERIALS

SECTION 23.01.    Hazardous
Material.

(a)           Subject
to the express terms and conditions of the Master Ground Lease, notwithstanding
anything contained in this Sublease to the contrary, if Subtenant discovers any
Hazardous Materials on the Land prior to the date hereof, then Subtenant shall
have the right to terminate this Sublease be delivering Notice thereof to the
Sublessor no later that twenty-five (25) days after discovery.  If Subtenant terminates this Sublease as a
result of finding Hazardous Materials on the Land, then neither party hereto
shall have any further rights, duties, or obligations hereunder.

(b)           As
used in this Sublease, the term “Hazardous Materials” means (a) any soil,
flammable substance, explosive, radioactive material, hazardous waste or
substance, toxic waste or substance or any other waste, material or pollutant
which (i) pose a hazard to the Premises or to Persons on or about the Premises
or (ii) cause the asbestos in any form which is or could become friable, urea
formaldehyde foam insulation, transformers or other equipment which contains
dielectric fluid containing levels of polychlorinated biphenyls, or radon gas;
(b) any chemical, material or substance defined as or included in the
definition of “hazardous substances,” “hazardous wastes,” “hazardous materials,”
“extremely hazardous waste,” “restricted hazardous waste,” or “toxic substances”
or words of similar import under any Applicable Law or under the regulations
adopted or publications promulgated pursuant thereto, including, but not
limited to, the Comprehensive Environmental Response, Compensation and
Liability Act (“CERCLA”), 42 USC 9601 et seq.; the Resource Conversation and
Recovery Act (“RCRA”), 42 USC 6901 et seq.; the Hazardous Materials
Transportation Act, 49 USC 1801, et seq., the Federal Water Pollution Control
Act, 33 USC 1251 et seq.; (c) oil or other petroleum products; (d)
chlorofluorocarbons; (e) any other chemical, material or substance, exposure to
which is prohibited, limited or regulated by any governmental authority or may
or could pose a hazard to the health and safety of the occupants of property adjacent
to or surrounding the Premises or adjacent property; and (f) any other
chemical, material or substance which may or could pose a hazard to the
environment.  The term “Hazardous
Materials” shall include without limitation raw materials, building components,
the products of any manufacturing or other activities on the Premises and
wastes.

(c)           Subtenant
shall not use, occupy, or knowingly permit the Premises to be used or occupied,
or do or knowingly permit anything to be done in or on the Premises in any
manner which would in any way make void or voidable any insurance then in force
with respect thereto, which would make it impossible to obtain the insurance
required to be furnished by Subtenant hereunder, which would constitute a
public or private nuisance, or which would violate any present or future,
ordinary or extraordinary laws, regulations, ordinances, or requirements of any
Governmental Authority having jurisdiction.

(d)           Subtenant
shall not use the Premises or knowingly permit the Premises to be used so as to
cause, suffer or allow any contamination of soils, ground water, surface water
or natural resources on or adjacent to the Premises resulting from any cause,
including but not limited to spills or leaks of oil, gasoline, hazardous
materials, hazardous wastes or other chemical 

 91
 

compounds. 
Subtenant shall at times during the Term comply with applicable state,
federal and local laws, regulations and guidelines for the use, handling
storage and disposal of hazardous materials. 
Subtenant shall be solely responsible for cleanup of any contamination
and for any fines or penalties resulting from violation of the provisions of
this Article XXIII.

ARTICLE XXIV. 
CONDITIONS TO EFFECTIVENESS OF SUBLEASE

SECTION 24.01.    Condition
Precedent.  Anything to the contrary
set forth herein notwithstanding the parties’ obligations to perform in
accordance with the terms hereof are subject to fulfillment of the following
conditions (collectively the “Conditions”):

(a)           On
or before July 1, 2007, Subtenant must be able to obtain a binding
commitment(s) for mortgage financing and equity placement sufficient to develop
and construct the Facilities.

(b)           Sublessor
must approve Subtenant’s Project Design Documents in accordance with Article
VII hereof.

(c)           Subtenant
must demonstrate and document to Sublessor’s reasonable satisfaction Subtenant’s
financial solvency and ability to complete the Project.

(d)           On
or before April 1, 2007 Subtenant and the State must be able to conclude a
mutually acceptable and binding commitment(s) for the State Contributions
defined in Section 8.01.

SECTION 24.02.    Implementation
Period. In the event the Conditions are not satisfied on or before December
31, 2007, this Sublease shall become null and void and of no further effect
between the parties hereto.  As evidence
of the full and complete satisfaction of the Conditions the Sublessor and
Subtenant shall execute a Memorandum of Ground Sublease for recordation in the
office of the Allegany County Register of Deeds pursuant to Section 27.07
hereof.

ARTICLE XXV. 
PHASE II

SECTION 25.01.    Subtenant’s
Right to Sublease Phase II Tract. 
Subject to the conditions set forth below, Sublessor agrees to Sublease
the Phase II Tract to Subtenant for the development of a second Project of like
size, type, architectural style and kind under the same terms and conditions as
set forth herein for Phase I (the “Right to Sublease”).

SECTION 25.02.    Conditions.  The Right to Sublease is subject, however, to
the following conditions:   (i) that this
Sublease becomes effective pursuant to Article XXIV; (ii) that Subtenant is not
in default hereunder, (iii) and that Subtenant obtains financing for the
Project.

SECTION 25.03.    Termination
of Right.  The Right to Sublease is
effective for five (5) years from the Effective Date.

ARTICLE XXVI. 
REPRESENTATIONS AND WARRANTIES

SECTION 26.01.    Representations and Warranties of
Sublessor.  Sublessor represents and
warrants to Subtenant that, as of the date of this Sublease:

(a)           Sublessor has received no written
notice and has no actual knowledge that the contemplated use of the Premises
will violate (i) any statutes, laws, regulations, rules, 

 92
 

ordinances,
permits, requirements or orders or decrees of any kind whatsoever now in effect
(including zoning, use or building statutes, laws and ordinances and
environmental protection laws, rules or regulations), or (ii) any building
permits or any conditions, easements, rights-of-way, agreements of record,
urban renewal plans, Subleases, covenants, restrictions of record or any other
agreement affecting the Premises.

(b)           To Sublessor’s actual knowledge, no
assessments for public improvements have been made against the Premises which
remain unpaid and there are no pending or proposed public improvements for
which an assessment could be made against the Premises.

(c)           Any permission, approval, joinder or
consent by third parties required in order for Sublessor to enter into this
Sublease has been received.

(d)           Sublessor has received no written
notice of any existing or threatened condemnation or eminent domain proceedings
(or proceedings in lieu thereof) affecting the Premises or any portion thereof.

SECTION
26.02.   Representations and Warranties of Subtenant.  Subtenant represents and warrants to
Sublessor as follows:

(a)           The execution and delivery of this
Sublease does not violate any agreement to which Subtenant is a party or to
which it is subject.

(b)           Subtenant is a limited liability
company duly organized and existing and in good standing under the laws of the
State of Maryland.

(c)           The execution and delivery of this
Sublease by the persons executing same has been approved in accordance with
Subtenant’s operating agreement. 
Subtenant has full power and authority to enter into and perform this
Sublease in accordance with its terms, and this Sublease constitutes a valid
and binding obligation of Subtenant, enforceable against Subtenant in
accordance with its terms.

(d)           Any permission, approval, joinder or
consent by third parties required in order for Subtenant to enter into this
Sublease has been received.

(e)           Subtenant has received no actual
notice of any actions, suits or proceedings (including bankruptcy, receivership
or assignment for the benefit of creditors) pending or threatened against
Subtenant at law or in equity or before or by any governmental authority.

ARTICLE XXVII.  MISCELLANEOUS

SECTION 27.01.    Relationship
of Parties.  Nothing contained herein
shall be deemed or construed by the parties hereto, or by any third party, as
creating the relationship of principal and agent, partners, joint ventures, or
any similar such relationship between the parties hereto.  It is understood and agreed that no provision
contained herein nor any acts of the parties hereto, creates a relationship
other than the relationship of Sublessor and Subtenant.

SECTION 27.02.    Nondiscrimination.  Any impermissible discrimination by Subtenant
or its agents or employees on the basis of race, color, sex, age, religion,
national origin, veteran’s status, or disability in employment practices or in
the performance of the terms, conditions, covenants and obligations of this
Sublease is prohibited.

 93
 

SECTION 27.03.    Brokerage
Commissions.  Subtenant warrants and
represents to Sublessor that it has had no dealings with any real estate broker
or agent in connection with this Sublease other than Glenn O. Weaver, who is
not acting as a Real Estate Broker and shall not be paid a brokerage fee for
securing the Sublease Agreement. 
Sublessor warrants and represents to Subtenant that it has had no dealings
with any real estate broker or agent in connection with this Sublease.  Sublessor and Lessee each agree to indemnify
the other as to any brokerage claims which either party may have created that
adversely affect the other.

SECTION 27.04.    Construction
of Sublease; Negotiation by the Parties. 
Sublessor and Subtenant have each had an opportunity through their
appointed representatives or otherwise to discuss and negotiate the terms of
this Sublease and are informed and capable of evaluating the contents
thereof.  Accordingly, this Sublease
shall not be construed either for or against Sublessor or Subtenant whether or
not a specific provision thereof was drafted by or on behalf of the Sublessor
or Subtenant, as the case may be.

SECTION 27.05.    No
Offer.  This Sublease is submitted to
Sublessor on the understanding that it will not be considered an offer and will
not bind Subtenant in any way until (a) Subtenant has duly executed and
delivered duplicate originals to Sublessor and (b) this Sublease has been
approved by Sublessor’s Board of Trustees and/or other required governing
bodies and Sublessor has executed and delivered one of such originals to
Subtenant.

SECTION 27.06.    Nonmerger
of Fee and Leasehold Estate.  If both the Estate of Sublessor and the
Estate of Subtenant in the Premises or improvements located thereon or both
become vested in the same owner, this Sublease shall not be terminated by
application of the doctrine of merger, except at the express written election
of the Landlord and the consent of any mortgagee(s) under any mortgages and
deeds of trust on the Premises.

SECTION 27.07.    Memorandum
of Lease.  Neither Sublessor nor Subtenant shall file
this Sublease for record in the Office of the Allegany County Register of
Deeds, or in any public place without the written consent of the other.  In lieu thereof, Sublessor and Subtenant
agree to execute in recordable form a Memorandum of Ground Sublease, whether in
a legal description of the Land, the Term and certain other provisions hereof,
shall be set forth.  Such memorandum
shall be filed for record in the Office of the Allegany County Register of
Deeds.  Recordation shall be the cost of
the Subtenant.

SECTION 27.08.    Approvals.  Whenever approvals are required of either
party hereunder, such approvals shall not be unreasonably withheld or
delayed.  If no time period is specified
for a response to a proposal or request for approval, a reasonable time not to
exceed ten Business Days from the date of such proposal or request shall apply
unless the parties otherwise agree in writing.

SECTION 27.09.    Maryland
Law to Apply.  This Sublease shall be
construed under and accordance with the laws of the State of Maryland, and all
obligations of the parties created hereunder are performable in Maryland.

SECTION 27.10.    Approval
of Ancillary Agreements.  Sublessor
agrees that in the event it becomes necessary or desirable for Sublessor to
approve in writing any ancillary agreements or documents concerning the
Premises or concerning the construction, operation or maintenance of the
Facilities or to alter or amend any such ancillary agreements between Sublessor
and Subtenant or to give any approval or consent of Sublessor required under
the terms of this Sublease, Sublessor hereby authorizes, designates and
empowers the following officers, any one of them acting alone and without
joinder of any other, except as may be required by the 

 94
 

University to execute any such agreement, approval or
consent necessary or desirable: 
Chancellor of Business and Finance of the University or his successors
in function.

SECTION 27.11.    Rights
Cumulative.  All rights, options, and
remedies of Sublessor and Subtenant contained in this Sublease shall be
constructed and held to be cumulative and no one of them shall be exclusive of
the other.  Sublessor or Subtenant shall
each have the right to pursue any one or all of such remedies or any other
remedy or relief which may be provided by law or in equity whether or not
stated in this Sublease.

SECTION 27.12.    Nonwaiver.  No waiver by either party of a breach of any
of the covenants, conditions, or restrictions of this Sublease shall constitute
a waiver by such party of any subsequent breach of any of the covenants,
conditions or restrictions of this Sublease. 
The failure of either party to insist in any one or more cases upon the
strict performance of any of the covenants of the Sublease, or to exercise any
option herein contained, shall not be construed as a waiver or relinquishment
for the future of such covenant or option. 
A receipt of Sublessor or acceptance of payment by Sublessor of Rent
with knowledge of the breach of any covenant hereof shall not be deemed a
waiver of such breach, (unless such breach is the failure to pay the payment
then received or accepted) and no waiver, change, modification or discharge by
either party of any provision of this Sublease shall be deemed to have been
made or shall be effective unless expressed in writing and signed by the party
to be charged.

SECTION 27.13.    Terminology.  Unless the context of this Sublease clearly
requires otherwise, (a) pronouns, wherever used herein, and of whatever gender,
shall include natural persons and corporations and associations of every kind
and character; (b) the singular shall include the plural wherever and as often
as may appropriate; (c) the word “includes” or “including” shall mean “including
without limitation”; and (d) the words “hereof,” “herein,” “hereunder,” and
similar terms in this Sublease shall refer to this Sublease as a whole and not
to any particular section or article in which such words appear.  The section, article and other headings in
this Sublease and the Table of Contents to this Sublease are for reference
purposes and shall not control or affect the construction of this Sublease or
the interpretation hereof in any respect. 
Article, section and subsection and exhibit references are to this
Sublease unless otherwise specified.  All
exhibits attached to this Sublease constitute a part of this Sublease and are
incorporated herein.

SECTION 27.14.    Counterparts.  This Sublease may be executed in multiple
counterparts, each of which shall be an original.

SECTION 27.15.    Severability.  If any clause or provision of this Sublease
is illegal, invalid or unenforceable under present or future laws effective
during the term of this Sublease, then and in that event, it is the intention
of the parties hereto that the remainder of this Sublease shall not be affected
thereby.

SECTION 27.16.    Entire
Agreement.  This Sublease contains
the final and entire agreement between the parties hereto and contains all of
the terms and conditions agreed upon, and no other agreements, oral or
otherwise, regarding the subject matter of this Sublease shall be deemed to
exist or to bind the parties hereto; it being the intent of the parties that
neither shall be bound by any term, condition, or representation not herein
written.

SECTION 27.17.    Amendment.  No amendment, modification, or alteration on
the terms of this Sublease shall be binding unless the same be in writing,
dated on or subsequent to the date hereof and duly executed by the parties
hereto.

 95
 

SECTION 27.18.    Successors
and Assigns.  All of the covenants,
agreements, terms and conditions to be observed and performed by the parties
hereto shall be applicable to and binding upon their respective successors,
heirs, executors and assigns.

SECTION 27.19.    Authority.  Each party hereto represents and warrants
that all necessary approvals for this Sublease have been obtained, and the
person whose signature appears below has the necessary authority to execute
this Sublease on behalf of the party indicated.

SECTION 27.20.    Independent
Contractor.  It is expressly
understood and agreed that Subtenant is and shall be deemed to be an
independent contractor and operator responsible to all parties for its
respective acts or omissions and that Sublessor shall in no way be responsible
therefor.

SECTION 27.21.    Notices.  All notices, requests, demands, and other
communications required or permitted to be given under this Sublease shall be
in writing and sent to the address(es) or telecopy number(s) set forth
below.  All rent payments shall be sent
to Landlord at the address below.  Each
communication shall be deemed duly given and received: (1) as of the date and
time the same is personally delivered with a receipted copy; (2) if given by
telecopy, when the telecopy is transmitted to the recipient’s telecopy
number(s) and confirmation of complete receipt is received by the transmitting
party during normal business hours for the recipient, or the day after
confirmation is received by the transmitting party if not during normal
business hours for the recipient; (3) if delivered by U.S. Mail, three (3) days
after depositing with the United States Postal Service, postage prepaid by
certified mail, return receipt requested, or (4) if given by nationally
recognized or reputable overnight delivery service, on the next day after
receipted deposit with same.  If any
notice is sent by telecopy, the transmitting party may as a courtesy send a
duplicate copy of the notice to the other party by regular mail.  In all events, however, any notice sent by
telecopy transmission shall govern all matters dealing with the delivery of the
notice, including the date on which the notice is deemed to have been received
by the other party.

	
  Sublessor:

  	
   

  	
  Allegany County Administrator

  
	
   

  	
   

  	
  701 Kelly Road, Suite 407

  
	
   

  	
   

  	
  Cumberland, MD 21502

  
	
   

  	
   

  	
  Telephone:

  	
   

  	
  (301)777-2428

  
	
   

  	
   

  	
  Fax:

  	
   

  	
  (301)777-5819

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Director of Economic Development

  
	
   

  	
   

  	
  701 Kelly Road

  
	
   

  	
   

  	
  Cumberland, MD 21502

  
	
   

  	
   

  	
  Telephone:

  	
   

  	
  (301) 777-5911

  
	
   

  	
   

  	
  Fax:

  	
   

  	
  (301) 777-

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Subtenant:

  	
   

  	
  Carl Belt, Jr.

  
	
   

  	
   

  	
  Allegany Research Properties, LLC

  
	
   

  	
   

  	
  11521 Milnor Avenue

  
	
   

  	
   

  	
  P. O. Box 1210 Cumberland, MD 21502

  
	
   

  	
   

  	
  Telephone:

  	
   

  	
  (301) 729-8900

  
	
   

  	
   

  	
  Fax:

  	
   

  	
  (301) 729-0921

  
	
   

  	
   

  	
  Email:

  	
   

  	
  cbeltjr@thebeltgroup.com

  

 96
 

 

	
  

  	
   

  	
   

  	
   

  	
   

  
	
  Developer:

  	
   

  	
  Academic Privatization of Maryland, LLC

  
	
   

  	
   

  	
  6300 Castlebrook Drive

  
	
   

  	
   

  	
  Raleigh, NC 27604

  
	
   

  	
   

  	
  Telephone:

  	
   

  	
  919-414-0739

  
	
   

  	
   

  	
  Fax:

  	
   

  	
  800-859-7444

  
	
   

  	
   

  	
  Email:

  	
   

  	
  glenn.weaver@gte.net

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with copies to:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Ragsdale Liggett PLLC

  
	
   

  	
   

  	
  2840 Plaza Place, Suite 400

  
	
   

  	
   

  	
  Raleigh, North Carolina 27612

  
	
   

  	
   

  	
  Attn: William A. Mann

  
	
   

  	
   

  	
  Telephone:

  	
   

  	
  919-787-5200

  
	
   

  	
   

  	
  Fax:

  	
   

  	
  919-783-8991

  
	
   

  	
   

  	
  Email:

  	
   

  	
  Bmann@rl-law.com

  

 

SECTION 27.22.    Coordinated Development.  Sublessor and Sublessee desire that (a) the
Land and (b) the parcels of land owned by the Sublessor which are adjacent to
the Land, both be developed and improved in a coordinated manner to support and
foster the efficient improvement and use of both.  To that end, the Sublessor and the Sublessee
agree to enter into and to record a writing (an “Easement Agreement”)
establishing easements and covenants governing the obligations and rights of
each respectively to locate utility systems and access ways on the Land and
that adjacent parcel owned by the Sublessor to support the development use of
the Property and the current and future use of any adjacent parcel owned by the
Sublessor and future development thereof. 
The Easement Agreement shall be on such terms and conditions as agreed
to by the Sublessor and Sublessee and the University.  The Sublessor and Sublessee and the
University agree to discuss the Easement Agreement and its proposed content and
form in good faith.

SECTION 27.23.    Applicable Law.  This Ground Lease shall be given effect and
construed by application of the laws of the State of Maryland, and any action
or proceeding thereunder shall be brought in any appropriate Federal or State
Court in the State of Maryland.

IN WITNESS WHEREOF, this Sublease is executed by
Sublessor and Subtenant as of the day and year first above written.

	
  

  	
   

  	
  SUBLESSOR:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BOARD OF COUNTY COMMISSIONERS OF ALLEGANY COUNTY,
  MARYLAND (SEAL)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Chairman

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SUBTENANT:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ALLEGANY RESEARCH PROPERTIES, LLC, a Maryland
  limited liability company (SEAL)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Managing Member

  

 

 97

 

STATE OF MARYLAND,

COUNTY OF ALLEGANY, TO-WIT:

I, the undersigned Notary Public of the aforesaid
County and State, certify that                                               ,
Chairman of the BOARD OF COUNTY COMMISSIONERS OF ALLEGANY COUNTY, MARYLAND, personally
came before me this day and signed the foregoing instrument for and on behalf
of the County.

Witness my hand and official stamp or seal, this the         
day of                                    ,
2007.

 

	
  

  	
   

  	
   

  
	
   

  	
   

  	
  Notary Public

  
	
  (official seal)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  My Commission Expires:                                             

  	
   

  	
   

  

 

STATE OF MARYLAND,

COUNTY OF ALLEGANY, TO-WIT:

I, the undersigned Notary Public of the aforesaid
County and State, certify that                                             ,
Managing Member of ALLEGANY RESEARCH PROPERTIES, LLC, a Maryland limited
liability company (the “Company”) personally came before me this day and signed
the foregoing instrument for and on behalf of the Company.

Witness my hand and official stamp or seal, this the         
day of                           ,
2007.

 

	
  

  	
   

  	
   

  
	
   

  	
   

  	
  Notary Public

  
	
  (official seal)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  My Commission Expires:                                             

  	
   

  	
   

  

 

 98
 

MARYLAND

ALLEGANY COUNTY

MEMORANDUM OF GROUND SUBLEASE

THIS MEMORANDUM OF GROUND SUBLEASE is made by and
between the BOARD OF COUNTY COMMISSIONERS OF ALLEGANY COUNTY, MARYLAND, a body
politic and corporate and a political subdivision of the State of Maryland, (“Sublessor”)
and ALLEGANY RESEARCH PROPERTIES, LLC, a Maryland limited liability company,
having its principal place of business at 11521 Milnor Avenue, Cumberland,
Allegany County, Maryland (“Subtenant”), for a term beginning on the          
day of                        ,
200  , and continuing for a maximum period until July 1, 2076,
including extensions and renewals, if any, the property described in Exhibit A
attached hereto.

The provisions set forth in a written Sublease
Agreement (the “Sublease”) between the parties dated as of the             
day of                         ,
2007, are hereby incorporated in this memorandum.

IN WITNESS WHEREOF, the parties hereto have duly
executed this Memorandum of Sublease and have hereunto set their seals of the          
day of                                        ,
2007.

	
  

  	
   

  	
  SUBLESSOR:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BOARD OF COUNTY COMMISSIONERS OF ALLEGANY COUNTY,
  MARYLAND (SEAL)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Chairman

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SUBTENANT:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ALLEGANY RESEARCH PROPERTIES, LLC, a Maryland
  limited liability company (SEAL)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Managing Member

  

 

 99
 

STATE OF MARYLAND,

COUNTY OF ALLEGANY, TO-WIT:

I, the undersigned Notary Public of the aforesaid
County and State, certify that                                                    ,
Chairman of the BOARD OF COUNTY COMMISSIONERS OF ALLEGANY COUNTY, MARYLAND,
personally came before me this day and signed the foregoing instrument for and
on behalf of the County.

Witness my hand and official stamp or seal, this the                day
of                       ,
2007.

 

	
  

  	
   

  	
   

  
	
   

  	
   

  	
  Notary Public

  
	
  (official seal)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  My Commission Expires:                                             

  	
   

  	
   

  

 

STATE OF MARYLAND,

COUNTY OF ALLEGANY, TO-WIT:

I, the undersigned Notary Public of the aforesaid
County and State, certify that                                                   ,
Managing Member of ALLEGANY RESEARCH PROPERTIES, LLC, a Maryland limited
liability company (the “Company”) personally came before me this day and signed
the foregoing instrument for and on behalf of the Company.

Witness my hand and official stamp or seal, this the         
day of                           ,
2007.

 

	
  

  	
   

  	
   

  
	
   

  	
   

  	
  Notary Public

  
	
  (official seal)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  My Commission Expires:                                             

  	
   

  	
   

  

 

 

 100

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}]]