exv10w47



 



Exhibit
10.47


OFFICE
LEASE AGREEMENT




 






CATALYTICA ENERGY SYSTEMS, INC.

WARNER COURTYARDS

301 WEST WARNER RD.

Suite # 132




 


TABLE OF CONTENTS







	 	 	 	 	 	 	 
	Page	 	 	 	 	 	 
	ARTICLE 1.
	 	SUMMARY AND DEFINITION OF CERTAIN LEASE PROVISIONS AND EXHIBITS	 	 	1	 
	ARTICLE 2.
	 	PREMISES/RIGHT TO USE COMMON AREAS	 	 	1	 
	ARTICLE 3.
	 	TERM	 	 	2	 
	ARTICLE 4.
	 	MINIMUM MONTHLY RENT	 	 	2	 
	ARTICLE 5.
	 	ADDITIONAL RENT/EXPENSE STOP	 	 	2	 
	ARTICLE 6.
	 	PARKING	 	 	2	 
	ARTICLE 7.
	 	RENT TAX AND PERSONAL PROPERTY TAXES	 	 	3	 
	ARTICLE 8.
	 	PAYMENT OF RENT/LATE CHARGES	 	 	3	 
	ARTICLE 9.
	 	SECURITY DEPOSIT	 	 	3	 
	ARTICLE 10.
	 	CONSTRUCTION OF THE PREMISES	 	 	3	 
	ARTICLE 11.
	 	ALTERATIONS	 	 	3	 
	ARTICLE 12.
	 	PERSONAL PROPERTY/SURRENDER OF PREMISES 	 	 	3	 
	ARTICLE 13.
	 	LIENS	 	 	3	 
	ARTICLE 14.
	 	USE  OF  PREMISES/RULES AND REGULATIONS	 	 	3	 
	ARTICLE 15.
	 	RIGHTS RESERVED BY LANDLORD	 	 	4	 
	ARTICLE 16.
	 	QUIET ENJOYMENT	 	 	4	 
	ARTICLE 17.
	 	MAINTENANCE AND REPAIR	 	 	4	 
	ARTICLE 18.
	 	UTILITIES AND JANITORIAL SERVICES	 	 	4	 
	ARTICLE 19.
	 	ENTRY AND INSPECTION	 	 	4	 
	ARTICLE 20.
	 	ACCEPTANCE OF THE PREMISES/LIABILITY INSURANCE	 	 	4	 
	ARTICLE 21.
	 	CASUALTY INSURANCE 	 	 	5	 
	ARTICLE 22.
	 	DAMAGE AND DESTRUCTION OF PREMISES	 	 	5	 
	ARTICLE 23.
	 	EMINENT DOMAIN	 	 	5	 
	ARTICLE 24.
	 	ASSIGNMENT AND SUBLETTING	 	 	5	 
	ARTICLE 25.
	 	SALE OF PREMISES BY LANDLORD	 	 	5	 
	ARTICLE 26.
	 	SUBORDINATION/ATTORNMENT/MODIFICATION/ASSIGNMENT	 	 	5	 
	ARTICLE 27.
	 	LANDLORD’S DEFAULT AND RIGHT TO CURE	 	 	6	 
	ARTICLE 28.
	 	ESTOPPEL CERTIFICATES	 	 	6	 
	ARTICLE 29.
	 	TENANT’S DEFAULT AND LANDLORD’S REMEDIES	 	 	6	 
	ARTICLE 30.
	 	TENANT’S RECOURSE	 	 	6	 
	ARTICLE 31.
	 	HOLDING OVER	 	 	6	 
	ARTICLE 32.
	 	GENERAL PROVISIONS	 	 	6	 
	ARTICLE 33.
	 	NOTICES	 	 	7	 
	ARTICLE 34.
	 	BROKER’S COMMISSIONS	 	 	7	 
	ARTICLE 35.
	 	INDEMNIFICATION /WAIVER OF SUBROGATION 	 	 	7	 
	ARTICLE 36.
	 	ADDENDUM	 	ADDENDUM-1	 
	 
	 	 	 	 	 	 
	EXHIBITS:
	 	 	 	 	 	 
	(A)
	 	PREMISES	 	 	 	 
	(B)
	 	RULES AND REGULATIONS	 	 	 	 
	(C)
	 	PARKING RULES AND REGULATIONS	 	 	 	 






 









 







OFFICE LEASE AGREEMENT

CATALYTICA ENERGY SYSTEMS, INC.



THIS OFFICE LEASE AGREEMENT, dated August 28, 2006 is made and entered into by WARNER COURTYARDS,
LLC, an Arizona Limited Liability Company, PARK 3020, LLC, an Arizona Limited Liability Company,
PARK 3030, LLC, an Arizona Limited Liability Company, and METZGER
WARNER COURTYARDS, LLC, a
Delaware Limited Liability Company, (Collectively the
“Landlord”) and CATALYTICA ENERGY SYSTEMS, INC., a
Delaware Corporation (the “Tenant”). In
consideration of the mutual promises and representations set forth in this Lease, Landlord and
Tenant agree as follows:




ARTICLE 1. SUMMARY AND DEFINITION OF CERTAIN LEASE PROVISIONS AND EXHIBITS





	1.1	 	The following terms and provisions of this Lease, as modified by other terms and
provisions hereof, are included in this  Section 1.1 for summary and definitional purposes
only. If there is any conflict or inconsistency between any term or provision in this
Section 1.1 and any other term or provision of this
Lease, the other term or provision of
this Lease shall control:





	 	 	 	 	 	 	 
	 

	 	(a)
	 	Landlord:
	 	Warner Courtyards, LLC
	 

	 	 	 	 	 	Park 3020, LLC 
	 

	 	 	 	 	 	park 3030, LLC 
	 

	 	 	 	 	 	Metzger Warner Courtyards, LLC
	 
	 	 	 	 	 	 
	 

	 	(b)
	 	Address of Landlord for Notices:
	 	c/o Hannay Investment Properties, Inc.
	 

	 	 	 	 	 	2999 N. 44th Street
	 

	 	 	 	 	 	Suite 400 
	 

	 	 	 	 	 	Phoenix, Arizona 85018
	 
	 	 	 	 	 	 
	 

	 	(c)
	 	Tenant:
	 	Catalytica Energy Systems, Inc.
	 
	 	 	 	 	 	 
	 

	 	(d)
	 	Address of Tenant for Notices:
	 	Catalytica Energy Systems, Inc.
	 

	 	 	 	(Include Main/Hdq. Address)
	 	301 West Warner Rd. Suite 132
	 

	 	 	 	 	 	Tempe, Arizona 85284







	 	(e)	 	Lease Term: September 15, 2006, through September 30, 2007, as further defined in Article 3.
	 
	 	(f)	 	Building: The office building known as WARNER COURTYARDS, located at 301 West
Warner Rd., Tempe, Arizona 85284 (the “Building”).
	 
	 	(g)	 	Premises: Suite 132 on the first floor of the
Building, as shown on Exhibit
A, consisting of approximately 1,893 Rentable Square
Feet.
	 
	 	(h)	 	Minimum Monthly Rent: $1,971.88 plus applicable sales tax for September 15, 2006
through September 30, 2006, $3,943.75 plus applicable sales tax for each full calendar
month commencing on October 1, 2006 through September 30, 2007.
	 
	 	(i)	 	Tenant’s Base Share: (see Article 5).
	 
	 	(j)	 	Intentionally Deleted.
	 
	 	(k)	 	Security Deposit: A Security Deposit of $3,800.00 is required at the time the Lease is
signed by Tenant.
	 
	 	(l)	 	Parking: Two (2) covered reserved spaces at $30 each per month. Uncovered,
unreserved spaces in the project shall be available at no charge. The overall parking
ratio of the project is six (6) spaces per 1000 square feet of rentable area.
	 
	 	(m)	 	Building Hours: 7:00 am to 6:00 p.m. Monday through Friday; 7:00 am to 12:00 p.m.
Saturday. Closed Sundays and all legal holidays. Tenant shall have twenty-four (24)
hour, seven (7) day a week access to the Premises.






	1.2	 	The following exhibits (the “Exhibits”) and addenda are attached hereto and incorporated
herein by this reference:
	 
	 	 	Exhibit A      Premises
	 
	 	 	Exhibit B      Building Rules and Regulations
	 
	 	 	Exhibit C     Parking Rules and Regulations
	 
	 	 	Addendum to Office Lease Agreement (the “Addendum”), dated of even date herewith.

The Office Lease Agreement, the Addendum, and the Exhibits are collectively referred to herein
as the “Lease.”





ARTICLE 2. PREMISES/RIGHT TO USE COMMON AREAS





	2.1	 	Landlord leases to Tenant and Tenant leases from Landlord the
Premises, for and subject to
the terms and provisions set forth in this
Lease. This Lease is subject to all liens, encumbrances, parking and access easements,
restrictions, covenants, and all other matters of
record, the Rules and Regulations described in Article 14 and the Parking Rules and Regulations
described in Article 6. Tenant and
Tenant’s agents, contractors, customers, directors, employees, invitees, officers, and
patrons (collectively, the “Tenant’s Permittees”) have a
non-exclusive privilege and license, during the Lease Term, to use the non-restricted Common
Areas in common with all other authorized
users thereof.





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	2.2	 	For purposes of this Lease, the following terms have the definitions set forth below:






	 	(a)	 	“Automobile Parking Areas” means all areas designated for automobile parking upon
the Land. Automobile Parking Areas are Common Areas, but certain parking areas are
restricted, (See Parking Rules & Regulations).
	 
	 	(b)	 	“Common Areas” means those areas within the Building and Land not leased to any
tenant and which are intended by Landlord to be available for the use, benefit, and
enjoyment of all occupants of the Building.
	 
	 	(c)	 	“Interior Common Facilities” means lobbies, corridors, hallways, elevator
foyers, restrooms, mail rooms, mechanical and electrical rooms, janitor closets, and
other similar facilities used by tenants or for the benefit of tenants on a
non-exclusive basis. Access to certain Interior Common Facilities is restricted.
	 
	 	(d)	 	“Land,” means the parcel of land containing the Building;
	 
	 	(e)	 	“Load Factor” means the quotient of the Rentable Square Footage of the Building
divided by the aggregate Usable Square Footage of all premises and occupiable space in
the Building, and is subject to change from time to time.
	 
	 	(f)	 	“Rentable Square Footage” means (l) with respect to the Building, the sum of the
total area of all floors in the Building (including Interior Common Facilities but
excluding stairs, elevator shafts, vertical shafts, parking areas and exterior
balconies), computed by measuring to the exterior surface of permanent outside walls;
and (2) with respect to the Premises, the Usable Square Footage of the Premises
multiplied by the Load Factor.
	 
	 	(g)	 	“Usable Square Footage” means the area of the Premises (or other space occupiable
by tenants as the case may be) computed by measuring to the exterior surface of
permanent outside walls, to the midpoint of corridor and demising walls and to the
Tenant side of permanent interior walls and Interior Common Facilities walls (other than
corridor walls).





ARTICLE
3. TERM 



The term of this Lease shall be Twelve (12) months, plus the remainder of any partial calendar
month in which the Lease Term commences, commencing on September 15, 2006, the Commencement Date,
and expiring September 30, 2007.




ARTICLE 4. MINIMUM MONTHLY RENT



Tenant shall pay to Landlord, without deduction, setoff, prior notice, or demand, the Minimum
Monthly Rent, payable in advance on the first day of each calendar month during the Lease Term.
If the Lease Term commences on a date other than the first day of a calendar month, the Minimum
Monthly Rent for that month shall be prorated on a per diem basis and be paid to Landlord on or
before the Commencement Date.




ARTICLE 5. Intentionally Deleted.




ARTICLE 6. PARKING



Nothing contained herein shall be deemed to create liability upon Landlord for any damage to
motor vehicles of Tenant’s Permittees, or from loss of property from within such motor vehicles
while parked in the Automobile Parking Areas. Landlord has the right to establish and to enforce
against all users of the Automobile Parking Areas, reasonable rules and regulations (the “Parking
Rules and Regulations). Landlord shall assign and identify Reserved Parking Spaces. Landlord will
not police nor be responsible for any vehicle parked in Tenant’s reserved parking space.





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ARTICLE 7. RENT TAX AND PERSONAL PROPERTY TAXES



Tenant
shall pay to Landlord, in addition to, and simultaneously with, any other amounts payable
to Landlord under this Lease, a sum equal to the aggregate of any municipal, county, state, or
federal excise, sales, use, or transaction privilege taxes now or
hereafter legally levied or imposed against, or on account of, any amounts payable under this Lease by Tenant or the receipt thereof by
Landlord. Tenant shall pay, prior to delinquency, all taxes levied upon fixtures, furnishings,
equipment, and personal property placed on the Premises by Tenant.




ARTICLE
8. PAYMENT OF RENT/LATE CHARGES



Tenant
shall pay the rent and all other charges specified in this Lease to
Landlord at the
address set forth on Section 1.1(b) of this Lease, or to another person and at another address as
Landlord from time to time designates in writing. Minimum Monthly Rent, additional rent, or other
charges payable by Tenant to Landlord under the terms of this Lease not received within ten (10)
days after the due date (the “Delinquency Date”) thereof
shall automatically (and without notice) incur a late charge of five
percent (5%) of the delinquent amount.




ARTICLE 9. SECURITY DEPOSIT



Tenant shall, upon execution of this Lease, deposit with Landlord the Security Deposit, as
security for the performance of term and provisions of this Lease by Tenant, which shall be
returned to Tenant at the termination of the Lease if it has discharged its obligations to
Landlord in full. The Security Deposit shall not be used to pay the last month’s lease payment.




ARTICLE 10. Intentionally Deleted.




ARTICLE 11. ALTERATIONS



Tenant shall not make or cause to be made any further additions to, or alterations of, the
Premises or any part thereof without the prior written consent of Landlord, which consent shall
not be unreasonably withheld. Tenant shall be allowed to install a card access or security system
in accordance with the Building Guidelines.




ARTICLE 12. PERSONAL PROPERTY/SURRENDER OF PREMISES



All personal property located in the Premises shall remain the property of Tenant and may be
removed by Tenant not later than the Expiration Date or the earlier
termination of the Lease Term.
Tenant shall promptly repair, at its own expense, any damage
resulting from such removal. All
cabinetry, built-in appliances, wall coverings, floor coverings, window coverings, electrical
fixtures, plumbing fixtures, conduits, lighting, and other special fixtures that may be placed upon,
installed in, or attached to the Premises by Tenant shall, at the termination of this Lease be the
property of Landlord. At the Expiration Date or upon the earlier termination of the Lease Term,
Tenant shall surrender the Premises in good condition, reasonable wear and tear excepted, and
shall deliver all keys to Landlord.




ARTICLE 13. LIENS



Tenant
shall keep the Premises, Building, and the Land free from any liens
arising out of work
performed, material furnished, or obligations incurred due to the actions of Tenant or Tenant’s
Permittees or the failure of Tenant to comply with any law. In the event any such lien does
attach against the Premises, Building, or Land, and Tenant does not
discharge the lien or post
bond (which under law would prevent foreclosure or execution under the lien) within ten (10) days
after demand by Landlord, such event shall be a default by Tenant under this Lease and , in
addition to Landlord’s other rights and remedies, Landlord may take any action necessary to
discharge the lien.




ARTICLE 14. USE OF PREMISES/RULES AND REGULATIONS





	14.1	 	Without the prior approval of Landlord, Tenant shall not use the Premises for any use other
than for general business office purposes and
Tenant agrees that it will use the Premises in such manner as to not interfere with or
infringe on the rights of other tenants in the Building.
Tenant agrees to comply with all applicable laws, ordinances and regulations in connection
with its use of the Premises, agrees to keep the
Premises in a clean and sanitary condition, and agrees not to perform any act in the Building
which would increase any insurance
premiums related to the Building or would cause the cancellation of any insurance policies
related to the Building.
	 
	14.2	 	Tenant shall not use, generate, manufacture, store, or
dispose of, in, under, or about the
Premises, the Building, the Land, or the Project or
transport to or from the Premises, the Building, the Land, or the Project, any Hazardous
Materials. For purposes of this Lease, “Hazardous
Materials” includes, but is not limited to: (i) flammable, explosive, or radioactive
materials, hazardous wastes, toxic substances, or related materials; (ii) all substances defined as “hazardous substances,” “hazardous materials,”
“toxic substances,” or “hazardous chemical
substances or mixtures” in the Comprehensive Environmental Response Compensation and Liability
Act of 1980, as amended, 42 U.S.C.
§ 9601, et seq., as amended by Superfund Amendments and Re-authorization Act of 1986; the
Hazardous Materials Transportation Act, 49
U.S.C. § 1901. et seq.; the Resource Conservation and Recovery
Act, 42 U.S.C. § 6901, et seq.;
the Toxic Substances Control Act, 15
U.S.C. § 2601, et seq.; (iii) those substances listed in the United States Department of
Transportation Table (49 CFR 172.10 and
amendments thereto) or by the Environmental Protection Agency (or any successor agent) as
hazardous substances (40 CFR Part 302 and amendments thereto); (iv) any material, waste, or substance which is (A) petroleum, (B)
asbestos, (C) poly-chlorinated biphenyl’s,
 (D)
designated as a“ hazardous substance” pursuant to §
311 of the Clean Water Act, 33 U.S.C. S
1251 et seq. (33 U.S.C. § 1321) or listed
pursuant to the Clean Water Act (33 U.S.C. § 1317);
(E) flammable explosives; or (F)
radioactive materials; and (v) all substances defined
as “hazardous wastes” in Arizona Revised Statutes § 36-3501 (16).





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Notwithstanding the foregoing. Tenant may use and store reasonable amounts of substances normally
associated wish general office duties (such as copier toner, cleaning supplies, glue and other
materials) which are specifically approved in advance by Landlord.




ARTICLE
15. RIGHTS RESERVED BY LANDLORD



In addition to all other rights, Landlord has the following rights, exercisable without notice to
Tenant and without effecting an eviction, constructive or actual, and without giving right to any
claim for set off or abatement of rent: (a) to decorate and to
make repairs, alterations, additions, changes, or improvements in and about the Building during Building Hours (b) to
approve the weight, size, and location of heavy objects in and about the Premises and the
Building, and to require all such items to be moved into and out of the Building and Premises in
such manner as Landlord shall direct in writing; (c) to prohibit the placing of vending machines
in or about the Premises without the prior written consent of Landlord; (d) to take all such
reasonable measures for the security of the Building and its
occupants; and (e) to temporarily
block off parking spaces for maintenance or construction purposes.




ARTICLE 16. QUIET ENJOYMENT



Landlord agrees that, provided a default by Tenant has not occurred, Landlord will do nothing
that will prevent Tenant from quietly enjoying and occupying the Premises during the Lease term.
Tenant agrees this Lease is subordinate to the Rule and Regulations
described in Article 14, and
the Parking Rules and Regulations described in Article 6.




ARTICLE 17. MAINTENANCE AND REPAIR



Landlord shall maintain the Premises and Building in good condition and repair, reasonable wear
and tear excepted. Tenant waives all rights to make repairs at the expense of Landlord. If
Landlord would be required to perform any maintenance or make any
repairs because of: (a)
modifications to the roof, walls, foundation, and floor of the Building from that set forth in
Landlord’s plans and specifications which are required by Tenant’s design for improvements,
alterations and additions; (b) installation of Tenant’s improvements, fixtures, or equipment; (c)
a negligent or wrongful act of Tenant or Tenant’s Permittees; or, (d) Tenant’s failure to perform
any of Tenant’s obligations under this Lease, Landlord may perform the maintenance or repairs and
Tenant shall pay Landlord the cost thereof. Tenant agrees to:
(a) Pay Landlord’s cost of
maintenance and repair, including additional janitorial costs of any Non-Building Standard
Improvements and Non-Building Standard materials and finishes and (b) Repair or replace all
celling and wall finishes (including painting) and floor or window coverings which require repair
or replacement during the Lease Term, at Tenant’s sole cost. Notwithstanding anything in this
Lease to the contrary, to the extent the terms and provisions of Article 22 conflict
with, or are inconsistent with, the terms and provisions of this Article 17, the terms
and provisions of Article 22 shall control. Tenant shall take all reasonable precautions to
insure that the Premises are not subjected to excessive wear and tear, i.e. chair pads should be
utilized by Tenant to protect carpeting. Tenant shall be responsible for touch-up painting in the
Premises throughout the Lease term.




ARTICLE
18. UTILITIES AND JANITORIAL SERVICES



Landlord agrees to furnish to the Premises during normal Building Hours as defined in Article 1.1
(m), (the “Building Hours”), and subject to the Rules and Regulations, electricity suitable for
the intended use of the Premises, heat and air conditioning required in Landlord’s judgment for
normal use and occupation of the Premises, and janitorial services for the Premises and Common
Areas. Landlord further agrees to furnish hot and cold water to those areas provided for general
use of all tenants in the Building. Landlord will use diligent efforts to provide continuous
elevator service for the Building. If Tenant shall require electric current, water, heating,
cooling, or air which will result in excess consumption of such utilities or services, Tenant
shall first obtain the written consent of Landlord to the use
thereof, if, in Landlord’s
reasonable discretion. Tenant consumes any utilities or services in excess of the normal
consumption of such utilities and services for general office use, Tenant agrees to pay Landlord
for the cost of such excess consumption of utilities or services,
currently at the rate of $.0026
per square foot, per hour, upon receipt of a statement of such costs from Landlord at the same
time as payment of the Minimum Monthly Rent is made. Landlord may install separate electrical
meters to, at Tenant’s expense, to measure excess consumption or establish another basis for
determining the amount of excess consumption of electrical current. Further, Landlord has
installed electronic HVAC over-time hour meters for Tenant’s convenience. These meters shall be
used, in part, by Landlord to determine Tenant’s excess HVAC consumption for purposes of billing
Tenant for such excess charges. Landlord shall not be liable for damages nor shall rent or other
charges abate in the event of any failure or interruption of any utility or service supplied to
the Premises or Building by a regulated utility or municipality, or any failure of a Building
system supplying any such service to the Premises (provided Landlord uses diligent efforts to
repair or restore the same) and no such failure or interruption shall entitle Tenant to abate rent
or terminate this Lease. Overtime HVAC charges shall be billed to
Tenant at the rate of $.0026
per hour, per square foot.




ARTICLE 19. ENTRY AND INSPECTION



Landlord shall have the right to enter into the Premises at reasonable times for the purpose of
inspecting the Premises and reserves the right, during the last three months of the term of the
Lease, to show the Premises with reasonable prior notice at reasonable times to prospective
tenants. Landlord shall be permitted to take any action under this Article without causing any
abatement of rent or liability to Tenant for any loss of occupation or quiet enjoyment of the
Premises, nor shall such action by Landlord be deemed an actual or constructive eviction.




ARTICLE 20. ACCEPTANCE OF THE PREMISES/LIABILITY INSURANCE





	20.1	 	All personal property and fixtures belonging to Tenant shall be placed and remain on the
Premises at Tenant’s sole risk. Upon taking possession of the Premises and thereafter during
the lease Term, the Tenant shall, at Tenant’s sole cost and expense, maintain insurance
coverage with limits not less than the following: (a) Worker’s Compensation Insurance,
minimum limit as defined by applicable laws; (b) Employer’s Liability Insurance, minimum
limit $1,000,000; (c) Commercial General Liability Insurance.
Bodily Injury/Property, Damage





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	 	 	Insurance (including the following coverages:
Premises/Operations, Independent Contractors,
Broad Form Contractual in support of the indemnification obligations of Tenant under this
Lease, and Bodily and Personal Injury Liability), minimum combined single limit $1,000,000;
(d) Automobile Liability Insurance, minimum limit $1,000,000. All such policies shall
include a waiver of subrogation in favor of Landlord and shall name Landlord and such other
party or parties as Landlord may require as additional insureds. Tenant’s insurance shall be
primary, with any insurance maintained by Landlord to be considered excess. Tenant’s
insurance shall be maintained with an insurance company qualified to do business in the State
of Arizona and having a current A.M. Best manual rating of at least A-X or better. Before
entry into the Premises and before expiration of any policy, evidence of these coverage’s
represented by Certificates of Insurance issued by the insurance carrier must be furnished to
Landlord. Certificates of Insurance should specify the additional insured status, the waiver
of subrogation, and that such insurance is primary, and any insurance by Landlord is excess.
The Certificate of Insurance shall state that Landlord will be notified in writing thirty
(30) days before cancellation, material change, or renewal of insurance.
	 
	20.2	 	During the entire Lease Term, Landlord agrees to maintain public liability insurance in
such forms and amounts as Landlord shall determine.





ARTICLE 21. CASUALTY INSURANCE





	21.1	 	Tenant shall maintain fire and extended coverage insurance
(full replacement value) with a
business interruption and extra  expense endorsements, on personal property and trade fixtures
owned or used by Tenant.






	21.2	 	Landlord shall maintain fire and full extended coverage insurance (“all risk”) including
necessary endorsements throughout the Lease Term on the Building (excluding Tenant’s trade
fixtures and personal property). At Landlord’s option, the policy of insurance may include a
business interruption insurance endorsement for loss of rents. The cost of the insurance
obtained under this Section 21.2 shall be an Operating Cost under Article 5 of this Lease.





ARTICLE 22. DAMAGE AND DESTRUCTION OF PREMISES



In the event of fire or other casualty damage to the Premises during the Lease Term which requires
repairs to the Premises, Landlord shall commence to make said repairs within ninety (90) days after
written notice by Tenant of the necessity therefor and diligently proceed therewith to completion.
The Minimum Monthly Rent shall be proportionately reduced while such repairs are being made, based
upon the extent to which the making of such repairs shall interfere with the business carried on
by Tenant in the Premises. Landlord shall have no obligation to
repair, restore, or replace
Tenant’s trade fixtures or personal property and Tenant shall be solely responsible therefor.
Notwithstanding the above, if (a) during the last year of the Lease Term the Premises or the
Building is damaged as a result of fire or any other insured
casualty, or (b) the Premises are
damaged to the extent of twenty-five percent (25%) or more of the replacement value of the
Premises, or (c) the Premises or the Building is damaged or destroyed as a result of a casualty
not insured against, or (d) the Building shall be damaged or destroyed by fire or other cause to
the extent of twenty percent (20%) or more of the Building’s replacement value, then Landlord
shall have the right, to be exercised by notice in writing to Tenant given within ninety (90) days
after said occurrence, to terminate this Lease. Tenant waives any statutory or other right Tenant
may have to cancel this Lease as a result of such destruction and no such destruction shall annul
or void this Lease. The provisions of this Article shall supersede the obligations of Landlord to
make repairs under Article 17 of the Lease. Notwithstanding the provisions of this Article 22, if the
Premises or any other portion of the Building are damaged by fire or other casualty resulting from
the negligent act or omission or willful misconduct of Tenant or Tenant’s Permittees, Minimum
Monthly Rent shall not be reduced during the repair of the damage, and Tenant shall be liable to
Landlord for the cost and expense of the repair and restoration of the Premises or the Building
caused thereby to the extent that cost and expense is not covered by insurance proceeds.




ARTICLE 23. EMINENT DOMAIN



In the event any portion of the Premises is taken from Tenant under eminent domain proceedings,
Tenant shall have no right, title or interest in any award made for such taking, except for any
separate award for fixtures and improvements installed by Tenant.




ARTICLE 24. ASSIGNMENT AND SUBLETTING



Tenant agrees not to assign this Lease, and shall not sublet the Premises without Landlord’s
prior written consent, which consent shall not be
unreasonably withheld as long as the use and density does not change. Any assignment or
subletting hereunder shall not release or discharge
Tenant of or from any liability under this Lease, and Tenant shall continue to be fully liable
thereunder. Consent by Landlord to one assignment, subletting, occupation, or use by another person shall not be deemed to be consent to any
subsequent assignment, subletting, occupation, or use
by another person. If Tenant is a corporation, an unincorporated association or a partnership,
unless listed on a national stock exchange, the
transfer, assignment or hypothecation of any stock or interest in such corporation, association
or partnership in the aggregate in excess of fifty
percent (50%) shall be deemed an assignment of this Lease. Tenant agrees to immediately notify
Landlord of any change in its ownership.




ARTICLE 25. SALE OF PREMISES BY LANDLORD



In the
event of any sale of the Building or the property upon which the Building is located or
any assignment of this Lease by Landlord (or a successor in title), if the assignee or
purchaser assumes the obligations of Landlord herein in writing,
Landlord (or such successor)
shall automatically be entirely freed and relieved of all liability under any and all of
Landlord’s covenants and obligations contained in this Lease or arising out of any act,
occurrence, or omission occurring after such sale or assignment, and the assignee or purchaser
shall be deemed, without any further agreement between the parties, to have assumed and agreed
to carry out any and all of the covenants and obligations of Landlord under this Lease, and
shall be substituted as Landlord for all purposes from and after the sale or assignment.




ARTICLE
26. SUBORDINATION/ATTORNMENT/MODIFICATION/ASSIGNMENT



Tenant’s
interest under this Lease is subordinate to all terms of and all liens and interests
arising under any ground lease, deed of trust, or


- 5 -









 






 mortgage now or hereafter placed on the Landlord’s interest in the Premises, the Building, or the
Land. Tenant consents to an assignment of Landlord’s interest in this Lease to Landlord’s lender
as required under such financing. If the Premises or the Building is sold as a result of a
default under the mortgage, or pursuant to a transfer in lieu of foreclosure, Tenant shall, at
the mortgagee’s, purchaser’s or ground lessor’s sole
election, attorn to the mortgagee or
purchaser. This Article is self-operative. However, Tenant agrees to execute and deliver, if
Landlord, any deed of trust holder, mortgagee, or purchaser should so request, such further
instruments necessary to subordinate this Lease to a lien of any mortgage or deed of trust, to
acknowledge the consent to assignment and to affirm the ATTORNMENT provisions set forth herein.




ARTICLE 27. LANDLORD’S DEFAULT AND RIGHT TO CURE



In the event of default hereunder by Landlord, Tenant agrees, before exercising any right or
remedy available to it, to give Landlord written notice of the claimed default. For the thirty
(30) days following such notice (or such longer period of time as may be reasonably required to
cure a matter which, due to its nature, cannot reasonably be remedied within thirty (30) days).
Landlord shall have the right to cure the default involved.




ARTICLE 28, ESTOPPEL CERTIFICATES



Tenant agrees at any time and from time to time upon request by Landlord, to execute,
acknowledge, and deliver to Landlord, within ten (10) calendar days after demand by Landlord, a
statement in writing certifying (a) that this Lease is unmodified and in full force and effect
(or if there have been modifications, that the same is in full force and effect as modified and
stating such modifications), (b) the dates to which the Minimum Monthly Rent and other rent and
charges have been paid in advance, if any, (c) Tenant’s acceptance and possession of the
Premises, (d) the commencement of the Lease Term, (e) the rent provided under the Lease, (f) that
Landlord is not in default under this Lease (or if Tenant claims such default, the nature
thereof), (g) that Tenant claims no offsets against the rent, and (h) such other information as
may be requested with respect to the provisions of this Lease or the tenancy created by this
Lease. Tenant’s failure to deliver such statement within such time shall be conclusive upon
Tenant (i) that this Lease is in full force and effect, without modification except as may be
represented by Landlord, (ii) that there are no uncured defaults in Landlord’s performance, and
(iii) that not more than one month’s rent has been paid in advance.




ARTICLE 29. TENANT’S DEFAULT AND LANDLORD’S REMEDIES



In the event Tenant fails to keep and perform any of the terms or conditions of this Lease,
including the Rules and Regulations and the Parking Rules and Regulations (but excluding the
payment of rental), and such failure continues for thirty (30) days after written notice of
default from Landlord or in the event Tenant fails to pay any rental due hereunder, time being of
the essence, Landlord may resort to any and all legal remedies or combination of remedies which
Landlord may desire to assert including but not limited to one or
more of the following: (1) lock the doors to the Premises and exclude Tenant therefrom, (2) retain or take possession of any
property on the Premises pursuant to Landlord’s lien, ( 3) enter the Premises and remove all
persons and property therefrom, (4) declare the Lease canceled and terminated, (5) sue for the
rent due and to become due under the Lease, and for any damages sustained by Landlord and (6)
continue the Lease in effect and relet the Premises on such terms and conditions as Landlord may
deem advisable with Tenant remaining liable for the monthly rent plus she reasonable cost of
obtaining possession of the Premises and of reletting the Premises, and of any repairs and
alterations necessary to prepare the Premises for reletting, less the rentals received from such
reletting, if any. No action of Landlord shall be construed as an election to terminate the Lease
unless written notice of such intention be given to Tenant. Tenant agrees to pay as additional
rental all attorneys’ fees and other costs and expenses incurred by Landlord is enforcing any of
Tenant’s obligations under this Lease.




ARTICLE 30. TENANT’S RECOURSE



Anything in this Lease to the contrary notwithstanding, Tenant agrees to look solely to the
estate and property of Landlord in the Land and the Building, subject to prior rights of any
ground lessor, mortgagee, or deed of trust of the Land and Building or any part thereof, for the
collection of any judgment requiring the payment of money by Landlord in the event of any default
by Landlord under this Lease. Tenant agrees that it is prohibited from using any other procedures
for the satisfaction of Tenants’ remedies. Neither Landlord nor any of its respective officers,
directors, employees, heirs, successors, or assigns, shall have any personal liability of any
kind or nature, directly or indirectly, under or in connection with this Lease.




ARTICLE 31. HOLDING OVER



Subject to prior written consent by Landlord, if Tenant holds over after the Expiration Date, or
any extension thereof, Tenant shall be a tenant at sufferance, the Minimum Monthly Rent shall be
increased to 125% of the then current lease rate at the Building or the Tenant’s lease rate at
the time the Lease expired, whichever is higher, plus any amounts due under Article 5, which
shall be payable in advance on the first day of such holdover period and on the first day of each
month thereafter. Tenant will be considered to be on a month-to-month
basis during any holdover
period.




ARTICLE 32. GENERAL PROVISIONS





	32.1	 	This Lease is construed in accordance with the laws of the
State of Arizona.
	 
	32.2	 	If Tenant is composed of more than one person or entity, then
the obligations of such entities or parties are joint and several.
	 
	32.3	 	If any term, condition, covenant, or provision of this Lease is held by a court of
competent jurisdiction to be invalid, void, or unenforceable, the remainder of the terms,
conditions, covenants, and provisions hereof shall remain in full force and effect and shall
in no way be affected, impaired, or invalidated.
	 
	32.4	 	The various headings and numbers herein and the grouping of the provisions of this Lease
into separate articles and sections are for the purpose of convenience only and are not be
considered a part hereof.





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	32.5	 	Time is of the essence of this Lease.
	 
	32.6	 	In the event either party initiates legal proceedings or retains an attorney to enforce
any right or obligation under this Lease or to obtain relief tor the breach of any covenant
hereof, the party ultimately prevailing in such proceedings or the non-defaulting party
shall be entitled to recover all costs and reasonable attorneys’ fees.
	 
	32.7	 	This Lease, and any Exhibit or Addendum attached hereto, sets forth all the terms,
conditions, covenants, provisions, promises, agreements, and undertakings, either oral or
written, between the Landlord and Tenant. No subsequent alteration,
amendment, change, or
addition to this Lease is binding upon Landlord or Tenant unless reduced to writing and
signed by both parties.
	 
	32.8	 	Subject to Article 24, the covenants herein contained shall apply to and bind the heirs,
successors, executors, personal representatives, legal representatives, administrators, and
assigns of all the parties hereto.
	 
	32.9	 	No term, condition, covenant, or provision of this Lease shall be waived except by written
waiver of Landlord, and the forbearance or indulgence by Landlord in any regard whatsoever
shall not constitute a waiver of the term, condition, covenant, or
provision to be performed
by Tenant to which the same shall apply, and until complete performance by Tenant of such
term, condition, covenant, or provision, Landlord shall be entitled to invoke any remedy
available under this Lease or by law despite such forbearance or
indulgence. The waiver by
Landlord of any breach or term, condition, covenant, or provision
hereof shall apply to and
be limited to the specific instance involved and shall not be deemed to apply to any other
instance or to any subsequent breach of the same or any other term, condition, covenant, or
provision hereof. Acceptance of rent by Landlord during a period in which Tenant is in
default in any respect other than payment of rent shall not be deemed a waiver of the other
default. Any payment made in arrears shall be credited to the oldest amount outstanding and
no contrary application will waive this right.
	 
	32.10	 	The use of a singular term in this Lease shall include the plural and the use of the
masculine, feminine, or neuter genders shall include all others.
	 
	32.11	 	Landlord’s submission of a copy of this Lease form to any person, including Tenant, shall
not be deemed to be an offer to lease or the creation of a lease unless and until this Lease
has been fully signed and delivered by Landlord.
	 
	32.12	 	Every term, condition, covenant, and provision of this Lease, having been negotiated in
detail and at arm’s length by both parties, shall be construed simply according to its fair
meaning and not strictly for or against Landlord or Tenant.
	 
	32.13	 	If the time for the performance of any obligation under this Lease expires on a Saturday,
Sunday, or legal holiday, the time for performance shall be extended to the next succeeding
day which is not a Saturday, Sunday, or legal holiday.
	 
	32.14	 	If requested by Landlord, Tenant shall execute written documentation with signatures
acknowledged by a notary public, to evidence when and if Landlord or Tenant has met certain
obligations under this Lease.





ARTICLE 33. NOTICES




Wherever in this Lease it is required or permitted that notice or demand be given or served by
either party to or on the other, such notice or demand shall be in writing and shall he given or
served and shall not be deemed to have been duly given or served
unless (a) in writing; (b) either
(1) delivered personally, (2) deposited with the United States Postal Service, as registered or
certified mail, return receipt requested, bearing adequate postage, or (3) sent by overnight
express courier (including, without limitation, Federal Express, DHL Worldwide Express, Airborne
Express, United States Postal Service Express Mail) with a request that the addressee sign a
receipt evidencing delivery; and (c) addressed to the party at
its address in Section 1.1. Either
party may change such address by written notice to the other. Service of any notice or demand
shall be deemed completed forty-eight (48) hours after deposit thereof, if deposited with the
United States Postal Service, or upon receipt if delivered by overnight courier or in person.




ARTICLE 34. BROKER’S COMMISSIONS



Tenant represents and warrants that there are no claims for brokerage commissions or finder’s
fees in connection with this Lease (excepting commissions or fees approved or authorized in
writing by Landlord) and further agrees that Tenant will be solely responsible for payment of any
leasing commissions related to brokers engaged by Tenant in regards to any extension or other
modification of this Lease. Landlord’s broker for this Lease is Mark Gustin, Trammell Crow
Company, and Landlord shall he solely responsible for paying Trammell
Crow its’ lease commission.




ARTICLE 35. INDEMNIFICATION/WAIVER OF SUBROGATION





	35..1	 	Tenant shall indemnify, defend, and hold Landlord and any lender of Landlord harmless
against all Claims (as defined below) and costs incurred by Landlord arising from: (a) any
act or omission of Tenant or Tenant’s Permittees which results in personal injury, loss of
life, or property damage sustained in and about the Premises, the Building, or the Land; (b)
attachment or discharge of a lien upon the Premises, the Building, or the Land; (c)
Tenant’s and Tenant’s Permittees’ use, generation, storage, release, threatened release,
discharge, disposal, or presence of Hazardous Materials on, under, or about the Premises,
the Building, or the Land; (d) any default of Tenant under this Lease; and (e) any claims
for brokerage commissions or finder’s fees in connection with this Lease (excepting
commissions or fees authorized in writing by Landlord). As used in this Lease, “Claims”
means any claim, suit, proceeding, action, cause of action, responsibility, demand, judgment
and execution, and attorneys’ fees and costs related thereto or arising therefrom.
	 
	35.2	 	Tenant hereby releases, discharges, and waives any right of recovery from Landlord and
landlord’s agents, directors, officers, and employees, and Landlord hereby releases,
discharges, and waives any right of recovery from Tenant and Tenant’s Permittees, from all
Claims, liabilities, losses, damages, expenses, or attorneys’ fees and costs incurred arising
from or caused by any peril required to be covered by insurance obtained by Landlord or Tenant
under this Lease, or covered by insurance in connection with (a) property on the Premises, the
Building, or the Land; (b) activities conducted on the Premises, the Building, or the Land;
and (c) obligations to






- 7 -









 






	 	 	indemnify under this Lease, regardless of the cause of the damage or loss. Landlord and
Tenant shall give their respective insurance carriers notice of these waivers and shall
secure an endorsement from each carrier to the effect that the waivers given in this
Article 35 shall not adversely affect or impair the policies of insurance or prejudice the
right of the named insured on the policy to recover thereunder. These waivers apply only to
the extent such Claims, liabilities, losses, damages, expenses, or attorneys’ fees are
covered by insurance required pursuant to this Lease.
	 
	35.3	 	Notwithstanding anything in this Lease so the contrary, Landlord shall not be
responsible or liable to Tenant for any Claims for loss or damage
caused by the acts or
omissions of any persons occupying any space elsewhere in the Building.





ARTICLE 36. RENEWAL OPTION



Provided
that Tenant is not in default under this Lease, Tenant is granted an Option to renew this
Lease for a period of One (1) year, from October 1, 2007 to
September 30, 2008. Tenant must
provide Landlord written notice on or before June 1, 2007 of Tenant’s intent to exercise
the renewal Option. The monthly Base Rent during the Option term shall be $3,982.18. All other
terms and conditions of this Lease shall remain unchanged during the Option term.





	 	 	IN WITNESS WHEREOF, the parties have duly executed this Lease as of the day and year first
above written.





	 	 	 	 	 	 	 	 	 	 	 
	LANDLORD	 	 	 	TENANT	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	WARNER COURTYARDS, LLC	 	 	 	CATALYTICA ENERGY SYSTEMS, INC.,	 	 
	 An Arizona Limited Liability Company

      By Hannay Investment Properties, Inc.,

      An Arizona Corporation,

      Its Manager	 	 	 	a Delaware Corporation	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ R. Craig Hannay 	 	 	 	
/s/
Robert Zack	 	 
	By:

	 	R. Craig Hannay
	 	 	 	By:
	 	Robert Zack	 	 
	Its:

	 	President
	 	 	 	Its:
	 	President	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	PARK 3020, LLC	 	 	 	Date 	 8/28/06	 	 
	An Arizona Limited Liability Company

      By Hannay Investment Properties, Inc.,

      An Arizona Corporation,

      Its Manager	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ R. Craig Hannay	 	 	 	 	 	 	 	 
	By:

	 	R. Craig Hannay	 	 	 	 	 	 	 	 
	Its:

	 	President	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	PARK 3030, LLC

An Arizona Limited Liability Company	 	 	 	 	 	 	 	 
	      By Hannay Investment Properties, Inc.,

      An Arizona Corporation,

      Its Manager	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	
/s/
R. Craig Hannay	 	 	 	 	 	 	 	 
	By:

	 	R. Craig Hannay	 	 	 	 	 	 	 	 
	Its:

	 	President	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	METZGER WARNER COURTYARDS, LLC

A Delaware Limited Liability Company

      By Hannay Investment Properties, Inc.,

      An Arizona Corporation,

      Its Attorney in Fact	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	
/s/
R. Craig Hannay	 	 	 	 	 	 	 	 
	By:

	 	R. Craig Hannay	 	 	 	 	 	 	 	 
	Its:

	 	President	 	 	 	 	 	 	 	 






- 8 -









 





EXHIBIT
“A”




PREMISES




Warner Courtyards

301 W. Warner Tempe, Arizona









A - 1









 




 


EXHIBIT
“B”




BUILDING
RULES AND REGULATIONS





	1.	 	Tenant will refer all contractors, contractor’s representatives and installation
technicians rendering any service to Tenant, to Landlord for
Landlord’s supervision, approval and control before performance of any contractual service.
This provision shall apply to all work
performed in the Building including installations of telephones, telegraph equipment,
electrical devices and attachments, and installations
of any nature affecting doors, walls, woodwork, trim, windows, ceilings, equipment or any
other physical portion of Building.
	 
	2.	 	No additional locks or bolts of any kind shall be placed upon any of the doors or windows
by any Tenant nor shall any changes be made in
existing locks or the mechanism thereof without consulting the Landlord.
	 
	3.	 	Movement in or out of the Building of furniture or office equipment, or dispatch or
receipt by Tenant of any merchandise or materials
which require use of stairways, elevators or movement through Building entrance or lobby
shall be restricted to hours designated by
Landlord. All such movement shall be under supervision of Landlord and in the manner agreed
between Tenant and Landlord by pre-
arrangement before performance. Such pre-arrangement initiated by Tenant will include
determination by Landlord and subject to its
decision and control, as to the concerns which may prohibit any article, equipment or any
other item from being brought into the Building.
Tenant is to assume all risk as to damage to articles moved and injury to persons or public
engaged or not engaged in such movement,
including equipment, property, and personnel or Landlord if damaged or injured as a result of
acts in connection with carrying out this
service for Tenant’ from time of entering property to completion of work; and Landlord shall
not be liable for acts of any person engaged
in, or any damage or loss to any of said property or persons resulting from, any act in
connection with such service performed for Tenant.
Any hand trucks, carryalls or similar appliances used for the delivery or receipt of
merchandise or equipment shall be equipped with
rubber tires, side guards and such other safeguards as the Building shall reasonably require.
	 
	4.	 	No signs, advertisements or notices shall be painted or affixed on or to any windows or
doors, or other parts of the Building, except of
such color, size and style and in such places, as shall be first approved in writing by
Landlord. Building standard suite entrance signs to
premises shall be placed thereon by a contractor designated by Landlord at Landlord’s
expense.
	 
	5.	 	Tenant shall not place, install or operate on the Premises or in part of the Building, any
engine, refrigerating (other than a home-type
kitchen refrigerator), heating or air conditioning apparatus, stove or machinery, or conduct
mechanical operations or cook thereon (other
than in a home-type microwave oven) or therein, or place in or about the Premises any
explosives, gasoline, kerosene, oil, acids, caustics
or any other inflammable, explosives, hazardous or odorous material without the prior written
consent of Landlord. No portion of the
Premises shall at any time be used for cooking, sleeping or lodging quarters. No Tenant shall
cause or permit any unusual or objectionable
odors to be produced upon or permeate from the leased Premises.
	 
	6.	 	Landlord will not be responsible for lost or stolen personal property, equipment, money or
jewelry from the Building, the Premises, or any other area on or about the Property, regardless
of whether such loss occurs when these areas were locked against entry or not.
	 
	7.	 	No birds or animals shall be brought into or kept in or about the Building.
	 
	8.	 	Employees of Landlord shall not receive or carry messages for or to Tenant or other person,
nor contract with or render free or paid
services to Tenant or Tenant’s agents, employees, or invitees.
	 
	9.	 	Landlord will not permit entrance to Tenant’s offices by use of pass keys controlled by
Landlord to any person at any time without written
permission by Tenant, except employees, contractors, or service personnel directly supervised
by Landlord.
	 
	10.	 	The entries, passages, doors, elevators and elevator doors (if provided), hallways or
stairways shall not be blocked or obstructed; no rubbish, litter, trash, or material of any
nature shall be placed, emptied or thrown into these areas, and such areas shall not be used
at any time except for ingress or egress by Tenant, Tenant’s agents, employees or invitees
to or from the Premises.
	 
	11.	 	Plumbing fixtures and appliances shall be used only for purposes for which constructed, and
no sweepings, rubbish, rags or other unsuitable material shall be thrown or placed therein.
Damage resulting to any such fixtures or appliances from misuse by Tenant, its employees,
agents, visitors or licensees shall be paid by Tenant, and Landlord shall not in any case be responsible therefor.
	 
	12.	 	The Landlord desires to maintain the highest standards of environmental comfort and
convenience for all Tenants. It will be appreciated if any
undesirable conditions or lack of
courtesy or attention are reported directly to the management. Tenant shall give immediate
notice to the Building Manager in case of accidents in the Premises or in the common areas or
of defects therein or in any fixtures or equipment, or of any known emergency in the
Building.
	 
	13.	 	No Tenant shall make, or permit to be made, any unseemly or disturbing noises, interfere
with occupants of this or neighboring buildings or premises, or those having business with
them, whether by the use of any device, musical instrument, radio, unmusical noise,
whistling, singing, or in any other way interfering with others’ quiet enjoyment of the
building.
	 
	14.	 	Landlord shall have the right to make such other and further reasonable rules and
regulations as in the judgment of Landlord may from time to time be needful for the safety,
appearance, care and cleanliness of the Building and for the preservation of good order
therein. Landlord shall not be responsible to Tenant for any violations of rules and
regulations by other Tenants.
	 
	15.	 	All Tenants shall adhere to and obey all such parking control measures as may be placed into
effect by the Landlord through the use of signs, identifying decals or other instructions. No
bicycles or other vehicles of any kind shall be brought into or kept on the Premises except
in designated areas specified for parking of such vehicles.
	 
	16.	 	No safes or other objects, larger or heavier than the Building is limited to carry, shall
be brought into or installed on the Premises. The Landlord shall have the power to prescribe
the weight and position of such safes or other objects which shall, if considered necessary
by the Landlord, be required to be supported by such additional materials placed on the
floor as the Landlord may direct, and at the expense of the Tenant.
	 
	17.	 	Landlord shall have no obligation to repair, re-stretch, or replace carpeting, but will
spot-clean and sweep carpeting as part of any janitorial services required to be furnished
by Landlord under the Lease.
	 
	18.	 	Names to be replaced on or removed from directories should be furnished to the manager in
writing on Tenant’s letterhead. All replacement directory strips will be at the expense of
the Tenant. Landlord will determine size and uniformity of strips.
	 
	19.	 	All Tenants shall see that doors of their premises are closed
and securely locked before
leaving the Building and must observe strict care not to leave such doors open and exposed
to the weather or other elements. Tenant shall exercise extraordinary care and caution that
all





B - 1










 








	 	 	water faucets or water apparatus are entirely shut off before the Tenant or the Tenant’s
employees leave the Building, and that all electricity, gas and air conditioning shall
likewise be carefully shut off, so as to prevent waste or damage, where controlled by
Tenant.
	 
	20.	 	Janitorial services shall he provided five days per week in and about the Premises, and in
no case shall such services be provided for Saturdays, Sundays and holidays (legal). Tenants
shall not cause unnecessary labor by reason of carelessness or indifference in the
preservation of good order and cleanliness. The work of the janitor or cleaning personnel
shall not be hindered by Tenant after 5:30 p.m., and such work may be done at any time when
the offices are vacant. The windows, doors and fixtures may be cleaned at any time without
interruption of purpose for which the Premises are let. Tenant shall provide adequate waste
and rubbish receptacles, cabinets, bookcases, map cases, etc. necessary to prevent
unreasonable hardship to Landlord in discharging its obligation regarding cleaning service.
Boxes should be broken down to fit into containers.
	 
	21.	 	Canvassing, soliciting and peddling in the Building are prohibited. All Tenants shall
cooperate to prevent the same.
	 
	22.	 	All nail holes are to be patched and repaired in Tenant’s suite by Tenant upon vacating
Premises.
	 
	23.	 	All holiday decorations and other temporary or special decorations must be
flame-retardant. No live Christmas trees or candles are to be
used throughout the Building. No decorations should be hung on the
exterior windows or on exterior suite doors.
	 
	24.	 	There shall be no smoking permitted in the Building.





B - 1









 





EXHIBIT
“C”




PARKING RULES AND REGULATIONS



The parking rules & regulations are designed to assure our tenants and visitors safe use
and enjoyment of the facilities. Please remove or hide any personal items of value from
plain sight to avoid temptation leading to vandalism of vehicles. Please exercise added
caution when using parking lot at night. Please keep vehicle locked at all times. Please
report violations of these rules to the Property Manager immediately. Please report any
lights out or other possibly dangerous situations to the Property Manager as soon as
possible.




Types of Parking




Surface — Covered



All surface-covered spaces are reserved and assigned to tenants. These spaces are available for
lease only. Parking spaces will be leased on a 90-day
prepaid basis. (Contact Property Manager for information).




Visitor Parking



Visitor parking is for clients and visitors to the building. In some cases, a time limit will be
posted. Tenants and employees should not use these spaces.




Handicap Parking



Only vehicles displaying handicap plates or official handicap placards may park in the spaces
designated as handicap parking.




Surface — Uncovered



All surface uncovered parking spaces, not marked handicap or reserved, are available for use by
tenants and employees.




Hours For Parking



7:00 a.m. to 6:00 p.m. Same as building hours.




 Restrictions





	•	 	Damage caused by vehicles is the responsibility of vehicle owner.
	 
	•	 	Landlord is not responsible for theft or damage to any vehicle.
	 
	•	 	Vehicles that leak excessive fluids will be required to protect parking surface.
	 
	•	 	Mechanical repairs to vehicles are not permitted on property.
	 
	•	 	Large or oversize vehicles such as motor homes, boats or trailers are not permitted.
	 
	•	 	No parking in Fire lanes, loading zones or any other areas
not designated as a parking space.
	 
	•	 	Landlord, at Landlord’s sole discretion, may add or modify the parking rules.




Violations of rules & regulations may result in towing from the Property. Towing from
the Property can only be ordered by Landlord or Property Manager.
Charges for towing are to be paid by vehicle owner.




C - 1