Common use of Calculation and Payment Clause in Contracts

Calculation and Payment. Interest on the Loans shall be calculated on the basis of a three hundred sixty-five (365) day year for the actual number of days elapsed. The date of payment of any Loan or interest on any Loan shall be excluded from the calculation of interest. Interest accruing on each Loan is payable in arrears on each of the following dates or events: (i) the last day of each calendar quarter commencing on June 30, 2008; (ii) the prepayment of such Loan (or a portion thereof); and (iii) the Maturity Date. Such interest may be paid in cash or, at the option of Borrower, interest may be paid in kind by adding the amount of such interest to the principal amount of each Loan (each Lender’s Loan to be ratably increased) on the applicable interest payment date, which will accrue interest pursuant to Section 1.2(a) or Section 1.2(c), as applicable, and issuing to each Lender (i) an additional note in the amount of the ratable increase of such Lender’s Loan in substantially the form attached as Exhibit 1.2(b)-1 (each, an “Additional Note”) and (ii) an additional warrant substantially in the form attached as Exhibit 1.2(b)-2 to purchase up to the number of shares of Common Stock obtained by dividing the amount of the ratable increase in such Lender’s Loan by 0.14 (each, an “Additional Warrant”). In the event that interest is not timely paid pursuant to this Section 1.2(b) on the applicable interest payment date, such interest payment shall be paid in kind and shall be added to the principal amount of each respective Lender’s Loan no later than the Business Day following the applicable interest payment date, and the Borrower shall issue the applicable Additional Notes and Additional Warrants as provided herein. Borrower shall, in connection with the issuance of Additional Warrants pursuant hereto, take all actions (including the reservation of shares of Common Stock) required pursuant to the terms of such Additional Warrants. Notwithstanding the foregoing, Borrower shall not have an option to pay interest in kind in the event that Borrower does not have sufficient authorized, unissued and unreserved Common Stock to fully reserve shares of Common Stock for issuance upon exercise of the Additional Warrants or is otherwise unable to comply with the terms of the Additional Warrants.

Calculation and Payment. Interest (a) Annual rent shall be payable to the Lessor without deduction or offset in lawful money of the United States at the Lessor's address herein or to such other persons or at such other places as the Lessor designates in writing. Rent payable for any period for less than one (1) month shall be prorated based upon a thirty (30) day month. Prior to the commencement of the lease term and on the Loans earlier of each December thereafter or the month following the date on which construction was substantially completed in a manner that changed the leasable area affecting the calculation thereof, the Lessor shall be calculated on give the basis Lessee a written estimate of a three hundred sixty-five (365) day year the Building Operating Expenses for the actual number of days elapsedensuing year or portion thereof. The date of payment of any Loan or interest on any Loan Lessee shall be excluded from pay such estimated amount to the calculation of interestLessor in equal monthly installments, in advance. Interest accruing on each Loan is payable in arrears on each of Within ninety (90) days after the following dates or events: (i) the last day end of each calendar quarter commencing year, the Lessor shall furnish to the Lessee a statement showing in reasonable detail the actual Building Operating Expenses incurred by the Lessor during such period, and the parties shall within thirty (30) days make any payment or allowance necessary to adjust the Lessee's estimated payment to the Lessee's actual proportionate share as shown by such annual statement. Any amount due the Lessee shall be credited against installments next coming due under this paragraph. (b) Within ninety (90) days after each Adjustment Date, the Lessor shall furnish the Lessee with a written statement showing the percentage change in the index for the period ending on June 30the Adjustment Date and specifying the increase, 2008; (ii) if any, in the prepayment annual rent subsequent to the Adjustment Date, taking into account all prior adjustments to annual rent for the period preceding the Adjustment Date pursuant to this paragraph above and applying any percentage increase in the index to the annual rent as previously adjusted. At the rental payment date next following the Lessee's receipt of such Loan (or a portion thereof); and (iii) statement, the Maturity Date. Such interest may be paid in cash or, at the option of Borrower, interest may be paid in kind by adding the amount of such interest Lessee shall pay to the principal Lessor an amount equal to one-twelfth (1/12th) of each Loan (each Lender’s Loan to be ratably increased) on the applicable interest payment date, which will accrue interest adjustment pursuant to Section 1.2(athis Paragraph (b) or Section 1.2(c), as applicable, and issuing to each Lender (i) an additional note in the amount of the ratable increase of such Lender’s Loan in substantially the form attached as Exhibit 1.2(b)-1 (each, an “Additional Note”) and (ii) an additional warrant substantially in the form attached as Exhibit 1.2(b)-2 to purchase up to multiplied by the number of shares of Common Stock obtained rent payment dates (including the current one) since the relevant Adjustment Date. Subsequent rental payments shall be increased by dividing the amount one-twelfth (1/12th) of the ratable increase in such Lender’s Loan by 0.14 (each, an “Additional Warrant”). In the event that interest is not timely paid adjustment pursuant to this Section 1.2(b) on the applicable interest payment date, such interest payment shall be paid in kind and shall be added to the principal amount of each respective Lender’s Loan no later than the Business Day following the applicable interest payment date, and the Borrower shall issue the applicable Additional Notes and Additional Warrants as provided herein. Borrower shall, in connection with the issuance of Additional Warrants pursuant hereto, take all actions Paragraph (including the reservation of shares of Common Stock) required pursuant to the terms of such Additional Warrants. Notwithstanding the foregoing, Borrower shall not have an option to pay interest in kind in the event that Borrower does not have sufficient authorized, unissued and unreserved Common Stock to fully reserve shares of Common Stock for issuance upon exercise of the Additional Warrants or is otherwise unable to comply with the terms of the Additional Warrantsb).

Calculation and Payment. Interest on the Loans (a) Annual rent shall be calculated on payable to the basis Lessor without deduction or offset, in lawful money of the United States at the Lessor's address herein or to such other persons or at such other places as the Lessor designates in writing. Rent payable for any period for less than one (1) month shall be prorated based upon a three hundred sixty-five thirty (36530) day year month. Prior to the commencement of the lease term and of each December thereafter, the Lessor shall give the Lessee a written estimate of the Lessee's share of Building and Common Area Operating Expenses for the actual number of days elapsedensuing year or portion thereof. The date of payment of any Loan or interest on any Loan Lessee shall be excluded from pay such estimated amount to the calculation of interestLessor in equal monthly installments, in advance. Interest accruing on each Loan is payable in arrears on each of Within ninety (90) days after the following dates or events: (i) the last day end of each calendar quarter commencing year, the Lessor shall furnish to the Lessee a statement showing in reasonable detail the actual Building and Common Area Operating Expenses incurred by the Lessor during such period, and the parties shall within thirty (30) days make any payment or allowance necessary to adjust the Lessee's estimated payment to the Lessee's actual proportionate share as shown by such annual statement. Any amount due the Lessee shall be credited against installments next coming due under this paragraph. (b) Within ninety (90) days after each Adjustment Date, the Lessor shall furnish the Lessee with a written statement showing the percentage change in the index for the period ending on June 30the Adjustment Date and specifying the increase, 2008; (ii) if any, in the prepayment annual rent subsequent to the Adjustment Date, taking into account all prior adjustments to annual rent for the period preceding the Adjustment Date pursuant to this paragraph above and applying any percentage increase in the index to the annual rent as previously adjusted. At the rental payment date next following the Lessee's receipt of such Loan (or a portion thereof); and (iii) statement, the Maturity Date. Such interest may be paid in cash or, at the option of Borrower, interest may be paid in kind by adding the amount of such interest Lessee shall pay to the principal Lessor an amount equal to one-twelfth (1/12th) of each Loan (each Lender’s Loan to be ratably increased) on the applicable interest payment date, which will accrue interest adjustment pursuant to Section 1.2(athis Paragraph (b) or Section 1.2(c), as applicable, and issuing to each Lender (i) an additional note in the amount of the ratable increase of such Lender’s Loan in substantially the form attached as Exhibit 1.2(b)-1 (each, an “Additional Note”) and (ii) an additional warrant substantially in the form attached as Exhibit 1.2(b)-2 to purchase up to multiplied by the number of shares of Common Stock obtained rent payment dates (including the current one) since the relevant Adjustment Date. Subsequent rental payments shall be increased by dividing the amount one-twelfth (1/12th) of the ratable increase in such Lender’s Loan by 0.14 (each, an “Additional Warrant”). In the event that interest is not timely paid adjustment pursuant to this Section 1.2(b) on the applicable interest payment date, such interest payment shall be paid in kind and shall be added to the principal amount of each respective Lender’s Loan no later than the Business Day following the applicable interest payment date, and the Borrower shall issue the applicable Additional Notes and Additional Warrants as provided herein. Borrower shall, in connection with the issuance of Additional Warrants pursuant hereto, take all actions Paragraph (including the reservation of shares of Common Stock) required pursuant to the terms of such Additional Warrants. Notwithstanding the foregoing, Borrower shall not have an option to pay interest in kind in the event that Borrower does not have sufficient authorized, unissued and unreserved Common Stock to fully reserve shares of Common Stock for issuance upon exercise of the Additional Warrants or is otherwise unable to comply with the terms of the Additional Warrantsb).

Calculation and Payment. Interest (a) Annual rent shall be payable to the Lessor without deduction or offset (except as provided in Sections 8.3, 12.3 and 13.2 below), in lawful money of the United States at the Lessor’s address herein or to such other persons or at such other places as the Lessor designates in writing. Rent payable for any period for less than one (1) month shall be prorated based upon a thirty (30) day month. Prior to the commencement of the lease term and of each December thereafter, the Lessor shall give the Lessee a written estimate of the Lessee’s share of Building and Common Area Operating Expenses for the ensuing year or portion thereof. The Lessee shall pay such estimated amount to the Lessor in equal monthly installments, in advance. Within ninety (90) days after the end of each calendar year and the end of the Lease Term, the Lessor shall furnish to the Lessee a statement showing in reasonable detail the actual Building and Common Area Operating Expenses incurred by the Lessor during such period, and the parties shall within thirty (30) days make any payment or allowance necessary to adjust the Lessee’s estimated payment to the Lessee’s actual proportionate share as shown by such annual statement. Any amount due the Lessee shall be credited against installments next coming due under this paragraph. (b) Within ninety (90) days after each Adjustment Date, the Lessor shall furnish the Lessee with a written statement showing the percentage change in the index for the period ending on the Loans Adjustment Date and specifying the increase, if any, in the annual rent subsequent to the Adjustment Date, talking into account all prior adjustments to annual rent for the period preceding the Adjustment Date pursuant to this paragraph above and applying any percentage increase in the index to the annual rent as previously adjusted. At the rental payment date next following the Lessee’s receipt of such statement, the Lessee shall pay to the Lessor an amount equal to one-twelfth (1/12th) of the adjustment pursuant to this paragraph (b) multiplied by the number of rent payment dates (including the current one) since the relevant Adjustment Date. Subsequent rental payments shall be calculated on the basis of a three hundred sixtyincreased by one-five twelfth (3651/12th) day year for the actual number of days elapsed. The date of payment of any Loan or interest on any Loan shall be excluded from the calculation of interest. Interest accruing on each Loan is payable in arrears on each of the following dates or eventsadjustment pursuant to this paragraph (b). (c) Lessee may audit Lessor’s Building and Common Area Operating Expenses in order to verify the accuracy of amount thereof provided that: (i) Lessee specifically designates the last day fiscal year(s) that Lessee intends to audit, which shall be a year within two (2) years of each calendar quarter commencing on June 30, 2008the date of the audit but must be within one (1) year following the Lease Term; (ii) the prepayment of such Loan audits shall be limited to one (or a portion thereof)1) time per calendar year; and (iii) Lessee gives Lessor fourteen (14) days’ prior written notice of any such audit. Lessee shall deliver to Lessor a copy of the Maturity Date. Such interest may be paid in cash or, at the option of Borrower, interest may be paid in kind by adding the amount results of such interest to the principal amount audit within fifteen (15) days of each Loan (each Lender’s Loan to be ratably increased) on the applicable interest payment date, which will accrue interest pursuant to Section 1.2(a) or Section 1.2(c), as applicable, and issuing to each Lender (i) an additional note in the amount of the ratable increase of such Lender’s Loan in substantially the form attached as Exhibit 1.2(b)-1 (each, an “Additional Note”) and (ii) an additional warrant substantially in the form attached as Exhibit 1.2(b)-2 to purchase up to the number of shares of Common Stock obtained its receipt by dividing the amount of the ratable increase in such Lender’s Loan by 0.14 (each, an “Additional Warrant”)Lessee. In the event that interest is not timely paid pursuant to this Section 1.2(b) on the applicable interest payment date, such interest payment No audit shall be paid conducted at any time that Lessee is in kind and shall be added to the principal amount default of each respective Lender’s Loan no later than the Business Day following the applicable interest payment date, and the Borrower shall issue the applicable Additional Notes and Additional Warrants as provided herein. Borrower shall, in connection with the issuance any of Additional Warrants pursuant hereto, take all actions (including the reservation of shares of Common Stock) required pursuant to the terms of such Additional Warrants. Notwithstanding the foregoing, Borrower shall not have an option to pay interest in kind in the event that Borrower does not have sufficient authorized, unissued and unreserved Common Stock to fully reserve shares of Common Stock for issuance upon exercise of the Additional Warrants or is otherwise unable to comply with the terms of the Additional WarrantsLease beyond the applicable cure period. No subtenant shall have any right to conduct an audit and no assignee shall conduct an audit for any period during which such assignee was not in possession of the Premises. Lessee shall use commercially reasonable efforts to minimize interference with Lessor’s business during such audits. If Lessor’s statement of Common Area Operating Expenses for the pertinent calendar year shall be found to have overstated Common Area Operating Expenses by more than five percent (5%), Lessor shall pay to Lessee all reasonable costs and expenses incurred by Lessee for such audit (not to exceed $2,500, which amount shall be increased annually in proportion to the increase in the CPI).

Calculation and Payment. Interest (A) Annual rent shall be payable to the Lessor without deduction or offset in lawful money of the United States at the Lessor's address herein or to such other persons or at such other places as the Lessor designates in writing. Rent payable for any period for less than one (1) month shall be prorated based upon a thirty (30) day month. Prior to the commencement of the lease term and on the Loans earlier of each December thereafter or the month following the date on which construction was substantially completed in a manner that changed the leasable area affecting the calculation thereof, the Lessor shall be calculated on give the basis Lessee a written estimate of a three hundred sixty-five (365) day year the Lessee's share of Building and Common Area Operating Expenses for the actual number of days elapsedensuing year or portion thereof. The date of payment of any Loan or interest on any Loan Lessee shall be excluded from pay such estimated amount to the calculation of interestLessor in equal monthly installments, in advance. Interest accruing on each Loan is payable in arrears on each of Within ninety (90) days after the following dates or events: (i) the last day end of each calendar quarter commencing year, the Lessor shall furnish to the Lessee a statement showing in reasonable detail the actual Building and Common Area Operating Expenses incurred by the Lessor during such period, and the parties shall within thirty (30) days make any payment or allowance necessary to adjust the Lessee's estimated payment to the Lessee's actual proportionate share as shown by such annual statement. Any amount due the Lessee shall be credited against installments next coming due under this paragraph. (B) Within ninety (90) days after each Adjustment Date, the Lessor shall furnish the Lessee with a written statement showing the percentage change in the index for the period ending on June 30the Adjustment Date and specifying the increase, 2008; (ii) if any, in the prepayment annual rent subsequent to the Adjustment Date, taking into account all prior adjustments to annual rent for the period preceding the Adjustment Date pursuant to this paragraph above and applying any percentage increase in the index to the annual rent as previously adjusted. At the rental payment date next following the Lessee's receipt of such Loan (or a portion thereof); and (iii) statement, the Maturity Date. Such interest may be paid in cash or, at the option of Borrower, interest may be paid in kind by adding the amount of such interest Lessee shall pay to the principal Lessor an amount equal to one-twelfth (1/12th) of each Loan (each Lender’s Loan to be ratably increased) on the applicable interest payment date, which will accrue interest adjustment pursuant to Section 1.2(athis Paragraph (b) or Section 1.2(c), as applicable, and issuing to each Lender (i) an additional note in the amount of the ratable increase of such Lender’s Loan in substantially the form attached as Exhibit 1.2(b)-1 (each, an “Additional Note”) and (ii) an additional warrant substantially in the form attached as Exhibit 1.2(b)-2 to purchase up to multiplied by the number of shares of Common Stock obtained rent payment dates (including the current one) since the relevant Adjustment Date. Subsequent rental payments shall be increased by dividing the amount one-twelfth (1/12th) of the ratable increase in such Lender’s Loan by 0.14 (each, an “Additional Warrant”). In the event that interest is not timely paid adjustment pursuant to this Section 1.2(b) on the applicable interest payment date, such interest payment shall be paid in kind and shall be added to the principal amount of each respective Lender’s Loan no later than the Business Day following the applicable interest payment date, and the Borrower shall issue the applicable Additional Notes and Additional Warrants as provided herein. Borrower shall, in connection with the issuance of Additional Warrants pursuant hereto, take all actions Paragraph (including the reservation of shares of Common Stock) required pursuant to the terms of such Additional Warrants. Notwithstanding the foregoing, Borrower shall not have an option to pay interest in kind in the event that Borrower does not have sufficient authorized, unissued and unreserved Common Stock to fully reserve shares of Common Stock for issuance upon exercise of the Additional Warrants or is otherwise unable to comply with the terms of the Additional Warrantsb).

Calculation and Payment. Interest on the Loans (a) Annual rent shall be calculated on payable to the basis Lessor without deduction or offset, in lawful money of the United States at the Lessor’s address herein or to such other persons or at such other places as the Lessor designates in writing. Rent payable for any period for less than one (1) month shall be prorated based upon a three hundred sixty-five thirty (36530) day year month. Prior to the commencement of the lease term and of each December thereafter, the Lessor shall give the Lessee a written estimate of the Lessee’s share of Building and Common Area Operating Expenses for the actual number of days elapsedensuing year or portion thereof. The date of payment of any Loan or interest on any Loan Lessee shall be excluded from pay such estimated amount to the calculation of interestLessor in equal monthly installments, in advance. Interest accruing on each Loan is payable in arrears on each of Within ninety (90) days after the following dates or events: (i) the last day end of each calendar quarter commencing year, the Lessor shall furnish to the Lessee a statement showing in reasonable detail the actual Building and Common Area Operating Expenses incurred by the Lessor during such period, and the parties shall within thirty (30) days make any payment or allowance necessary to adjust the Lessee’s estimated payment to the Lessee’s actual proportionate share as shown by such annual statement. Any amount due the Lessee shall be credited against installments next coming due under this paragraph. The Lessee or its representatives shall be entitled to examine the Lessor’s books and records pertaining to such costs upon reasonable advance notice to the Lessor. (b) Within ninety (90) days after each Adjustment Date, the Lessor shall furnish the Lessee with a written statement showing the percentage change in the index for the period ending on June 30the Adjustment Date and specifying the increase, 2008; (ii) if any, in the prepayment annual rent subsequent to the Adjustment Date, taking into account all prior adjustments to annual rent for the period preceding the Adjustment Date pursuant to this paragraph above and applying any percentage increase in the index to the annual rent as previously adjusted. At the rental payment date next following the Lessee’s receipt of such Loan (or a portion thereof); and (iii) statement, the Maturity Date. Such interest may be paid in cash or, at the option of Borrower, interest may be paid in kind by adding the amount of such interest Lessee shall pay to the principal Lessor an amount equal to one-twelfth (1/12th) of each Loan (each Lender’s Loan to be ratably increased) on the applicable interest payment date, which will accrue interest adjustment pursuant to Section 1.2(athis Paragraph (b) or Section 1.2(c), as applicable, and issuing to each Lender (i) an additional note in the amount of the ratable increase of such Lender’s Loan in substantially the form attached as Exhibit 1.2(b)-1 (each, an “Additional Note”) and (ii) an additional warrant substantially in the form attached as Exhibit 1.2(b)-2 to purchase up to multiplied by the number of shares of Common Stock obtained rent payment dates (including the current one) since the relevant Adjustment Date. Subsequent rental payments shall be increased by dividing the amount one-twelfth (1/12th) of the ratable increase in such Lender’s Loan by 0.14 (each, an “Additional Warrant”). In the event that interest is not timely paid adjustment pursuant to this Section 1.2(b) on the applicable interest payment date, such interest payment shall be paid in kind and shall be added to the principal amount of each respective Lender’s Loan no later than the Business Day following the applicable interest payment date, and the Borrower shall issue the applicable Additional Notes and Additional Warrants as provided herein. Borrower shall, in connection with the issuance of Additional Warrants pursuant hereto, take all actions Paragraph (including the reservation of shares of Common Stock) required pursuant to the terms of such Additional Warrants. Notwithstanding the foregoing, Borrower shall not have an option to pay interest in kind in the event that Borrower does not have sufficient authorized, unissued and unreserved Common Stock to fully reserve shares of Common Stock for issuance upon exercise of the Additional Warrants or is otherwise unable to comply with the terms of the Additional Warrantsb).

Calculation and Payment. Interest (A) Annual rent shall be payable to the Lessor without deduction or offset, in lawful money of the United States at the Lessor's address herein or to such other persons or at such other places as the Lessor designates in writing. Rent payable for any period for less than one (1) month shall be prorated based upon a thirty (30) day month. Prior to the commencement of the lease term on the Loans earlier and of each December thereafter or the month following the date on which construction was substantially completed in a manner that changed the leasable area affecting the calculation thereof, the Lessor shall be calculated on give the basis Lessee a written estimate of a three hundred sixty-five (365) day year the Lessee's share of Building and Common Area Operating Expenses for the actual number of days elapsedensuing year or portion thereof. The date of payment of any Loan or interest on any Loan Lessee shall be excluded from pay such estimated amount to the calculation of interestLessor in equal monthly installments, in advance. Interest accruing on each Loan is payable in arrears on each of Within ninety (90) days after the following dates or events: (i) the last day end of each calendar quarter commencing year, the Lessor shall furnish to the Lessee a statement showing in reasonable detail the actual Building and Common Area Operating Expenses incurred by the Lessor during such period, and the parties shall within thirty (30) days make any payment or allowance necessary to adjust the Lessee's estimated payment to the Lessee's actual proportionate share as shown by such annual statement. Any amount due the Lessee shall be credited against installments next coming due under this paragraph. (B) Within ninety (90) days after each Adjustment Date, the Lessor shall furnish the Lessee with a written statement showing the percentage change in the index for the period ending on June 30the Adjustment Date and specifying the increase, 2008; (ii) if any, in the prepayment annual rent subsequent to the Adjustment Date, taking into account all prior adjustments to annual rent for the period preceding the Adjustment Date pursuant to this paragraph above and applying any percentage increase in the index to the annual rent as previously adjusted. At the rental payment date next following the Lessee's receipt of such Loan (or a portion thereof); and (iii) statement, the Maturity Date. Such interest may be paid in cash or, at the option of Borrower, interest may be paid in kind by adding the amount of such interest Lessee shall pay to the principal Lessor an amount equal to one-twelfth (1/12th) of each Loan (each Lender’s Loan to be ratably increased) on the applicable interest payment date, which will accrue interest adjustment pursuant to Section 1.2(athis Paragraph (b) or Section 1.2(c), as applicable, and issuing to each Lender (i) an additional note in the amount of the ratable increase of such Lender’s Loan in substantially the form attached as Exhibit 1.2(b)-1 (each, an “Additional Note”) and (ii) an additional warrant substantially in the form attached as Exhibit 1.2(b)-2 to purchase up to multiplied by the number of shares of Common Stock obtained rent payment dates (including the current one) since the relevant Adjustment Date. Subsequent rental payments shall be increased by dividing the amount one-twelfth (1/12th) of the ratable increase in such Lender’s Loan by 0.14 (each, an “Additional Warrant”). In the event that interest is not timely paid adjustment pursuant to this Section 1.2(b) on the applicable interest payment date, such interest payment shall be paid in kind and shall be added to the principal amount of each respective Lender’s Loan no later than the Business Day following the applicable interest payment date, and the Borrower shall issue the applicable Additional Notes and Additional Warrants as provided herein. Borrower shall, in connection with the issuance of Additional Warrants pursuant hereto, take all actions Paragraph (including the reservation of shares of Common Stock) required pursuant to the terms of such Additional Warrants. Notwithstanding the foregoing, Borrower shall not have an option to pay interest in kind in the event that Borrower does not have sufficient authorized, unissued and unreserved Common Stock to fully reserve shares of Common Stock for issuance upon exercise of the Additional Warrants or is otherwise unable to comply with the terms of the Additional Warrantsb).

Calculation and Payment. Interest on (a) Annual rent shall by payable to Lessor without deduction or offset, in lawful money of the Loans United States at Lessor’s address herein or to such other persons or at such other places as Lessor designates in writing. Rent payable for any period for less than one month shall be calculated on the basis of prorated based upon a three hundred sixty-five thirty (36530) day year month. Prior to the commencement of the lease term and of each December thereafter, Lessor shall give Lessee a written estimate of Lessee’s share of Building and Common Area Operating Expenses for the actual number of ensuing year or portion thereof. Lessee shall pay such estimated amount to Lessor In equal monthly installments, In advance. Within ninety (90) days elapsed. The date of payment of any Loan or interest on any Loan shall be excluded from after the calculation of interest. Interest accruing on each Loan is payable in arrears on each of the following dates or events: (i) the last day end of each calendar quarter commencing year, Lessor shall furnish to Lessee a statement showing in reasonable detail the actual Building and Common Area Operating Expenses incurred by Lessor during such period, and the parties shall within thirty (30) days make any payment or allowance necessary to adjust Lessee’s estimated payment to Lessee’s actual proportionate share as shown by such annual statement. Any amount due Lessee shall be credited against installments next coming due under this paragraph. Lessee or its representatives shall be entitled to examine Lessor’s books and records pertaining to such costs upon reasonable advance written notice to Lessor. (b) Within ninety (90) days after each adjustment date, Lessor shall furnish Lessee a written statement showing the percentage change in the index for the period ending on June 30the adjustment date and specifying the increase, 2008; (ii) if any, in the prepayment annual rent subsequent to the adjustment date, taking into account all prior adjustments to annual rent for the period preceding the adjustment date pursuant to this paragraph above and applying any percentage increase in the index to the annual rent as previously adjusted. At the rental payment date next following Lessee’s receipt of such Loan statement, Lessee shall pay Lessor an amount equal to one twelfth (or a portion thereof); and (iii1/12) of the Maturity Date. Such interest may be paid in cash or, at the option of Borrower, interest may be paid in kind by adding the amount of such interest to the principal amount of each Loan (each Lender’s Loan to be ratably increased) on the applicable interest payment date, which will accrue interest adjustment pursuant to Section 1.2(athis Paragraph (b) or Section 1.2(c), as applicable, and issuing to each Lender (i) an additional note in the amount of the ratable increase of such Lender’s Loan in substantially the form attached as Exhibit 1.2(b)-1 (each, an “Additional Note”) and (ii) an additional warrant substantially in the form attached as Exhibit 1.2(b)-2 to purchase up to multiplied by the number of shares of Common Stock obtained rent payment dates (including the current one) since the relevant adjustment date. Subsequent rental payments shall be increased by dividing the amount one twelfth (1/12) of the ratable increase in such Lender’s Loan by 0.14 (each, an “Additional Warrant”). In the event that interest is not timely paid adjustment pursuant to this Section 1.2(b) on the applicable interest payment date, such interest payment shall be paid in kind and shall be added to the principal amount of each respective Lender’s Loan no later than the Business Day following the applicable interest payment date, and the Borrower shall issue the applicable Additional Notes and Additional Warrants as provided herein. Borrower shall, in connection with the issuance of Additional Warrants pursuant hereto, take all actions Paragraph (including the reservation of shares of Common Stock) required pursuant to the terms of such Additional Warrants. Notwithstanding the foregoing, Borrower shall not have an option to pay interest in kind in the event that Borrower does not have sufficient authorized, unissued and unreserved Common Stock to fully reserve shares of Common Stock for issuance upon exercise of the Additional Warrants or is otherwise unable to comply with the terms of the Additional Warrantsb).

Calculation and Payment. Interest on the Loans (a) Annual rent shall be calculated on payable to Lessor without deduction or offset, in lawful money of the basis of United Stales at Lessor’s address herein or to such other persons or at such other places as Lessor designates in writing, Rent payable for any period for less than one month shall be prorated based upon a three hundred sixty-five thirty (36530) day year month. Prior to the commencement of the lease term and of each December thereafter, Lessor shall give Lessee a written estimate of Lessee’s share of Building and Common Area Operating Expenses for the actual number of ensuing year or portion thereof. Lessee shall pay such estimated amount to Lessor in equal monthly installments, in advance. Within ninety (90) days elapsed. The date of payment of any Loan or interest on any Loan shall be excluded from after the calculation of interest. Interest accruing on each Loan is payable in arrears on each of the following dates or events: (i) the last day and of each calendar quarter commencing year, Lessor shall furnish to Lessee a statement showing in reasonable detail the actual Building and Common Area Operating Expenses incurred by Lessor during such period, and the parties shall within thirty (30) days make any payment or allowance necessary to adjust Lessee’s estimated payment to Lessee’s actual proportionate share as shown by such annual statement. Any amount due Lessee shall be credited against installments next coming due under this paragraph. Lessee or its representatives shall be entitled to examine Lessor’s books and records pertaining to such costs upon reasonable advance written notice to Lessor. (d) Within ninety (90) days after each adjustment date, Lessor shall furnish Lessee a written statement showing the percentage change in the Index for the period ending on June 30the adjustment date and specifying the increase, 2008; (ii) if any, in the prepayment annual rent subsequent to the adjustment date, taking into account all prior adjustments to annual rent for the period preceding the adjustment date pursuant to this paragraph above and applying any percentage increase in the index to the annual rent as previously adjusted. At the rental payment date next following Lessee’s receipt of such Loan statement, Lessee shall pay Lessor an amount equal to one twelfth (or a portion thereof); and (iii1/12) of the Maturity Date. Such interest may be paid in cash or, at the option of Borrower, interest may be paid in kind by adding the amount of such interest to the principal amount of each Loan (each Lender’s Loan to be ratably increased) on the applicable interest payment date, which will accrue interest adjustment pursuant to Section 1.2(athis Paragraph (d) or Section 1.2(c), as applicable, and issuing to each Lender (i) an additional note in the amount of the ratable increase of such Lender’s Loan in substantially the form attached as Exhibit 1.2(b)-1 (each, an “Additional Note”) and (ii) an additional warrant substantially in the form attached as Exhibit 1.2(b)-2 to purchase up to multiplied by the number of shares of Common Stock obtained rent payment dates including the current one) since the relevant adjustment date. Subsequent rental payments shall be increased by dividing the amount one twelfth (1/12) of the ratable increase in such Lender’s Loan by 0.14 (each, an “Additional Warrant”). In the event that interest is not timely paid adjustment pursuant to this Section 1.2(b) on the applicable interest payment date, such interest payment shall be paid in kind and shall be added to the principal amount of each respective Lender’s Loan no later than the Business Day following the applicable interest payment date, and the Borrower shall issue the applicable Additional Notes and Additional Warrants as provided herein. Borrower shall, in connection with the issuance of Additional Warrants pursuant hereto, take all actions Paragraph (including the reservation of shares of Common Stock) required pursuant to the terms of such Additional Warrants. Notwithstanding the foregoing, Borrower shall not have an option to pay interest in kind in the event that Borrower does not have sufficient authorized, unissued and unreserved Common Stock to fully reserve shares of Common Stock for issuance upon exercise of the Additional Warrants or is otherwise unable to comply with the terms of the Additional Warrantsd).