Document:

AGREEMENT

 

Dated:
November 30, 2006

 

This AGREEMENT (“Agreement”)
is made as of the date set forth above by and between the following parties:

 

 

	
  LifeWatch:

  	
   

  	
  LIFEWATCH HOLDING CORPORATION

  

  1351A ABBOTT CT.

  

  BUFFALO GROVE, IL 60089

  

  UNITED STATES OF AMERICA

  
	
   

  	
   

  	
   

  
	
  and

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Card
  Guard:

  	
   

  	
  CARD GUARD SCIENTIFIC SURVIVAL LTD.

  

  2 PEKERIS ST.

  

  REHOVOT, ISRAEL

  

 

and covers the sale of LifeStar
ACTTM (“LifeStar”), including spare parts, replacement parts, options,
upgrades, retrofit parts and support equipment as such may be improved or
modified from time to time (collectively with LifeStar, the “Products”)
all as more fully described in Annex A attached hereto.

 

In consideration
of the mutual covenants set forth below, the parties hereby agree as follows:

 

1.                        Sale of
Products

 

a.         Card Guard shall sell the Products to
LifeWatch during the Term, subject to the conditions described below.

 

b.         In addition and subject to the
provisions herein, from the date of this Agreement and until December 31, 2011
(the “Exclusivity Period”) Card Guard shall not, directly or through any
other person, entity or organization, sell or promote any product serving the
same function as LifeStar to any other person, entity or organization in the
United States.

 

2.                        Term

 

The term of this
agreement (the “Term”) shall commence on the date first written above
and shall continue through December 31, 2016. The Term will automatically be
renewed for consecutive twenty four month periods thereafter unless a written
notice of termination is given by either party to the other at its address set
forth

 

 

above at least 90 days
prior to the scheduled end of the Term. This Agreement is also subject to
termination by written notice upon the occurrence of certain events, as
described below.

 

3.                        Terms of
Delivery

 

All Products will
be purchased from Card Guard according to the terms and conditions described in
this Agreement. Orders may be placed via facsimile telephone transmission, and
shall be delivered within 8 weeks of receipt, except as due to Force Majeure as
described in Section 18 herein. All orders shall be delivered F.O.B. Card Guard’s
factory in Rehovot, Israel and risk of loss shall transfer to LifeWatch upon
delivery to the carrier(s).

 

4.                        Prices and
Payment

 

a.         The prices charged by Card Guard to
LifeWatch for Products shall be Card Guard’s standard prices for the Products
or such other price negotiated by the parties, and may only be increased by
Card Guard after December 31, 2011; thereafter, Card Guard may change such
prices (other than with respect to placed orders) as is reasonably required by
market demand, provided, however, that nothing in this provision
shall be construed in any way to obligate LifeWatch to accept any such
increase. All prices quoted in this Agreement or any other related agreements,
invoices, purchase orders, etc. are F.O.B. Card Guard’s factory in Rehovot,
Israel and are exclusive of any governmental taxes (including, without
limitation, sales, use, withholding and value added taxes) or duties imposed by
any governmental agency, such taxes and duties to be borne by LifeWatch.

 

b.         In order to maintain its exclusive
rights pursuant to Section 1.b. of this Agreement, LifeWatch shall order
Products with aggregate order amounts of no less than $3,000,000 each fiscal
year, commencing January 1, 2007 (it being understood that orders of Products
during 2006 shall be included for the purposes of this Section 4 as if made in
fiscal year 2007). If LifeWatch shall fail to purchase such amounts in any
fiscal year or shall provide Card Guard with a forecast (as described in
Section 4.b. below) of purchasing less Products for any subsequent fiscal year,
Card Guard may, by written notice effective immediately upon being sent,
terminate the exclusivity of LifeWatch pursuant to this Agreement (effective as
of January 1 of the subsequent year of such failure to make sufficient orders
or January 1 of the year for which forecasts are less than $3,000,000), which
shall be Card Guard’s sole remedy for failure to make such requisite orders or
forecast. If the exclusivity is so terminated, payment with respect to any
subsequent orders shall be made as follows: 20% within 10 days of any order
being provided to Card Guard; and the remaining amount within 60 days of the
receipt of any ordered Products.

 

c.         No later than November 15 of each
fiscal year, LifeWatch shall deliver to Card Guard a projection of the LifeStar
and other Products it estimates it will order during the following fiscal year
(it being understood that delivery terms shall be as set forth in Section 3
above). Such projections shall not be binding upon LifeWatch and

 

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may be changed prior to
or during the relevant fiscal year. Projections for any fiscal year shall be
updated by LifeWatch each time it makes an order. Notwithstanding the
non-binding nature of the projections, for so long as LifeWatch projects orders
of at least $3,000,000 for a fiscal year, then on January 1 of such fiscal year
LifeWatch shall pay Card Guard 20% of any projected orders for such fiscal year
(as such projections may have been amended prior to January 1) and shall make a
quarterly payment equal to 20% of such projected amount (regardless of when
actual orders and deliveries are made) on each of March 31, June 30, September
30 and December 31. If despite making projections for over $3,000,000 LifeWatch
fails to make sufficient orders during any fiscal year, then any amounts
advanced as described above shall be credited to any future purchases of
Products by LifeWatch.

 

In the event
LifeWatch shall makes an order during a fiscal year that is in excess of the
amount initially projected, then: (i) in the event such additional order is for
less than $1,000,000, payment with respect to such order shall be made as
follows: 20% within 10 days of such order being provided to Card Guard; and the
remaining amount within 60 days of the receipt of the ordered Products; (ii) in
the event such additional order is for more than $1,000,000, payment with
respect to such order shall be made as follows: 20% within 10 days of such
order being provided to Card Guard and the remaining shall be paid in four equal
quarterly payments each equal to 20% of the projected amount (regardless of
when actual orders and deliveries are made) on each of the first March 31, June
30, September 30 and December 31 following the date of such order (i.e., if an
additional order in the amount of $1,200,000 is made on July 15, 2008,
LifeWatch shall make a payment of $300,000 within 10 days and pay an additional
$300,000 on each of September 30, 2008, December 31, 2008, March 31, 2009 and
June 30, 2009).

 

d.        Every payment by LifeWatch shall be made
by wire transfer of immediately available funds, in each case as described in
the above paragraph. If LifeWatch shall fail to timely pay any amounts within 5
days of the date on which they are due, LifeWatch shall pay Card Guard interest
at the applicable US federal rate from the due date and until the date such
payment is made.

 

5.                        Inspection
and Acceptance

 

LifeWatch shall
have the right to inspect any Products. If LifeWatch so requests, LifeWatch
shall have the right to inspect the Products prior to shipment, without
delaying the same, at Card Guard’s factory or such other place as may be
designated by Card Guard. Cost of inspection shall be borne by LifeWatch.
LifeWatch shall either accept or reject Products within 30 business days of their
delivery to LifeWatch. Card Guard may assume acceptance of a Product if it is
not notified by LifeWatch within this 30 business day period, in writing, that
such Product is rejected. LifeWatch’s sole remedy for any defective Products
shall be, at Card Guard’s option, repairing such defects or replacing such
Products. The provisions of this Section 6 shall not be construed as limiting
or replacing Card Guard’s obligations pursuant to any warranty or
representation under this Agreement.

 

3

 

6.                        Purchasing
of Products; New Products

 

a.         LifeWatch shall purchase Products from
Card Guard; provided, however, that LifeWatch shall not be
required to purchase any of the Products (other than the complete LifeStars)
from Card Guard in the event LifeWatch may obtain any such Products (other than
the complete LifeStars) that meet the same quality standards as the Products
provided by Card Guard, on better terms (including, without limitation, price,
delivery time, quality specifications, time of delivery and offer validity)
from any other sources, provided, further, however, that
prior to the purchase of such Products from any such alternative source, if
LifeWatch identifies any source selling Products or any components thereof on
such better terms, it shall notify Card Guard of the existence of such source
and Card Guard shall have 30 days to match the prices and payment and delivery
terms proposed by such alternative source. Notwithstanding the above, to the
extent the above paragraph applies to products that incorporate any material
proprietary information or Rights that are incorporated in LifeStar, LifeWatch
may only purchase such products from Card Guard.

 

b.         LifeWatch shall not have the right to
make modifications to the Products, but may request Card Guard to make such
modifications. Card Guard shall respond within 30 days to any such proposed
modification with a definitive written proposal, which will include schedules
describing the impact of such modifications on cost and delivery schedules of
the Products. Card Guard shall act reasonably in order to accommodate LifeWatch’s
requests and negotiate reasonable cost and timetable adjustments. Card Guard
shall be the owner of any intellectual property rights incorporated into any
such modifications (and the right to register the same with any applicable
authority).

 

c.         If at any time during the Term Card
Guard or any of its affiliates (other than LifeWatch or its direct parent
company) shall independently and without the collaboration of any third party
develop any new technology or products that may be used by LifeWatch in its
then existing or contemplated business but only to the extent intended for use
by healthcare providers and not for sale to consumers, then Card Guard shall
not seek to sell, distribute, license or otherwise commercialize such
technology or products as it relates to healthcare providers (and not with
respect to sales to consumers) in the United States before first offering such
opportunity to LifeWatch; and LifeWatch shall have the opportunity to sell,
distribute, license or otherwise commercialize such technology or products in
the United States to healthcare providers so long as no other party offers to
do so on better terms (financial or otherwise).

 

7.                        Duties of
LifeWatch

 

During the Term,
LifeWatch shall:

 

a.         Provide Card Guard, on an annual and
quarterly basis (30 days before the beginning of each calendar quarter) and at
the time of making any order, monthly forecasts of purchases and required delivery
dates of LifeStars and each of the other Products.

 

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b.         Maintain standards of quality in the
use of LifeStars as is customary in the industry;

 

c.         Maintain current specification sheets,
bulletins and product brochures;

 

d.         Use the Products solely to provide
cardiac monitoring services (the “Services”)

 

8.                        Duties of
Card Guard

 

During the Term,
Card Guard shall:

 

a.         Deliver the Products requested by
LifeWatch in a timely manner and in a manner that meets the manufacturing
specifications included in Annex B attached hereto;

 

b.         To the extent there are any
improvements, upgrades or new versions of the LifeStar (as opposed to new
products), (i) provide LifeWatch with such improvements or upgrades, for no additional
cost, to the extent such can be added to the LifeStars previously purchased by
LifeWatch; and (ii) from the time of the release of any improvements, upgrades
or new versions, sell to LifeWatch such improved, upgraded or new version of
the LifeStar for no additional cost.

 

c.         Provide initial training and support to
LifeWatch, with respect to the technical aspects of the Products.

 

d.         Provide LifeWatch with any necessary
support in connection with operating LifeStar. At all times during the Term
Card Guard shall commit a sufficient number of employee hours to assist and
support LifeWatch with LifeStar.

 

e.         Maintain an adequate stock of supply
and replacement parts for all Products and provide service during the Term and
for a period of 7 years after the later to occur of the end of the Term or the
last sale of any LifeStar.

 

9.                        Maintenance
and Support

 

After the
termination of the warranty period described in Section 16.b. below, Card Guard
shall provide LifeWatch with maintenance and support for the Products in
accordance with its standard policies and for its standard rates, as described
in Annex C attached hereto.

 

In addition, at
the time LifeWatch shall make its order for 2007 and provided it meets the
order amount required to maintain its exclusivity rights under this Agreement,
the parties shall enter into a software escrow agreement pursuant to which a
copy of the source code of any software embedded in LifeStar and produced by
Card Guard (i.e., not a third party) shall be placed in escrow with a third
party, and pursuant to which such source code would be released to LifeWatch in
the event Card Guard ceases to exist or does not provide the LifeStars to
LifeWatch for any period exceeding 3

 

5

 

months and is not
reasonably expected to do so for at least such additional period (other than
due to termination of this Agreement or a dispute between the parties).

 

10.                 Intellectual
Property

 

a.         Throughout the Term and thereafter,
Card Guard shall have and maintain any and all patent rights, trademarks,
copyrights and other intellectual and industrial property rights, including
without limitation, know-how, trade secret, trade dress and other rights or
materials included in LifeStars or any other Products and any derivatives,
improvements and developments thereof or otherwise incorporated into the design
or packaging of any LifeStar and/or any other Products, including, without
limitation, any existing and future versions, upgrades and improvements
(collectively, the “Rights”).

 

b.         During the Term, LifeWatch may use the
Rights as necessary solely in order to provide the Services in the United
States and as otherwise described in this Agreement. LifeWatch may not resell
the Products to any person, entity or organization without Card Guard’s prior
written consent.

 

c.         LifeWatch shall promptly, on request,
execute and deliver to Card Guard any agreements, instruments or documents that
Card Guard may reasonably request to enable or assist Card Guard to obtain or
protect the Rights in the United States. If either party receives or discovers
any information regarding any actual or alleged unauthorized use of the Rights
or LifeStar or of any marks or other property substantially similar to the
Rights, LifeStar or the Products, such party shall immediately provide written
notice to such effect to the other party. Card Guard may take any necessary
actions to enforce its rights in the Rights and the Products in the United
States and prevent any other person from infringing upon such rights.

 

d.         Card Guard warrants, represents and
covenants that it owns (free and clear of any liens or charges) or has the
valid right to grant to LifeWatch the right to use the Rights in connection
with providing the Services. Notwithstanding the above, this warranty and
representations does not apply to any Products altered or repaired by anyone
other than Card Guard or combined with any other products or intellectual
property.

 

11.                 Confidentiality

 

During the Term
and for a period of five years thereafter, each party agrees to hold in strict
confidence any confidential and/or proprietary information concerning the other
party (the “Disclosing Party”) or its business that it receives from the
other party (the “Receiving Party”), or to which it gains access to as a
result of the execution or performance of this agreement, including, without
limitation, information (technical or other) concerning any of the Products,
their operation, the business of any of the parties and any information
concerning clients and client lists (the “Confidential Information”).
Each party agrees not to use Confidential Information other than to carry

 

6

 

out its duties,
obligations and rights pursuant to or as otherwise contemplated under, this
Agreement. Each party agrees to treat any Confidential Information with at
least the degree of care it treats its own Confidential Information.
Notwithstanding the above, Confidential Information shall not include
information which the Disclosing party can document: (1) at the time of
execution of this Agreement, was in the public domain, or entered the public
domain later through no breach of this provision; (2) was already known to the
Receiving Party prior to receipt of such information from the Disclosing Party;
or (3) was developed independently by the Receiving Party, without use of the
Disclosing party’s Confidential Information.

 

Upon termination
of this Agreement, each Receiving Party shall immediately return to the
Disclosing Party all Confidential Information it received from the Disclosing
Party and all copies of the same.

 

12.                 Termination

 

In addition to any
other provisions concerning termination in this Agreement either party shall
have the right, in its discretion and in addition to any other rights and
remedies in law, equity or under this Agreement, to terminate this Agreement
immediately upon written notice to the other party, if any of the following
events occur, each of which both parties hereby expressly acknowledge will
adversely and substantially affect the interests of the other party:

 

(1)        a material breach or failure to perform
any of the duties and obligations under this Agreement and failure to cure such
breach or failure within 30 days after written notice thereof from the other
party is received;

 

(2)        if the other party (i) files or has
filed against it any proceeding in bankruptcy or insolvency, or (ii) makes a
general assignment for the benefit of its creditors; or

 

(3)        if the other party becomes controlled by
a competitor of such terminating party.

 

13.                 Licenses and
Approvals

 

Card Guard
represents, warrants and covenants to LifeWatch that it has obtained all
licenses, permits, certificates, approvals or other documentation (“Licenses
and Approvals”) necessary to permit it or any other party (including,
without limitation, LifeWatch or its assigns and designees) to use the Products
in the United States. LifeWatch represents, warrants and covenants to Card
Guard that it has obtained all Licenses and Approvals necessary to permit it to
provide the Services using the Products in the United States.

 

Each party
covenants to the other that if the need for any additional Licenses and
Approvals in connection with the execution and performance of the actions
contemplated by this Agreement or the provisions of the Services shall arise in
the future, including, without limitation, in connection with complying the
Products or their use,

 

7

 

such party it shall use
commercially reasonable efforts to obtain such Licenses and Approvals promptly.
If modifications are required to comply with any other standards, Card Guard
shall provide to LifeWatch or LifeWatch shall provide to Card Guard, as the
case may be, in writing, all information concerning the costs of such
modifications and the parties shall negotiate in good faith which party shall
bear such costs.

 

14.                 No Agency or
Partnership

 

The parties’
relationship shall be that of independent contractors in performing their
obligations hereunder, and nothing herein is intended to, or shall be deemed
to, make either party an agent, legal representative, joint venture, partner,
employee or servant of the other for any purpose whatsoever.

 

15.                 Disputes

 

a.         This Agreement shall be governed by,
interpreted according to, and enforced in accordance with, the laws of the
state of New York, without giving effect to such state’s principles governing
conflicts of laws and excluding any (otherwise) applicable international rules
or conventions.

 

b.         Any dispute in connection with any
action or proceeding arising out of or relating to this Agreement or any
document or instrument delivered pursuant to or in connection with this
Agreement, including, without limitation, the terms or interpretation of this
Agreement, either during or following its termination shall be submitted to
arbitration before three arbitrators in Manhattan, New York, under the then
applicable rules of the American Arbitration Association. Judgment on any award
rendered may be entered in any court of the forum having jurisdiction. The
parties designate such forum as their sole choice and no other forum shall be
qualified to conduct any hearing concerning or resolve such disputes.

 

16.                 Representations
and Warranties

 

a.         Each party represents and warrants to
the other that such party has the corporate power and authority to enter into
and perform its obligations under this Agreement, that all necessary corporate
action to authorize this Agreement (and the performance of its obligations
hereunder) has been taken (and that no further action is required therefor),
that its performance of this Agreement does not violate any provision of its
governing documents, any agreement or instrument by which it or any of its
assets is bound or affected or any statute, law, rule or regulation applicable
to it, and that this Agreement is legal, valid and binding upon it in
accordance with its terms. Each party agrees to indemnify, defend and save
harmless the other and its officers, directors, employees, successors and
assigns from and against any losses, damages, claims, demands, suits,
liabilities, fines, penalties, and expenses (including reasonable attorney’s
fees) that arise out of or result from any failure to comply with this
provision.

 

b.         Card Guard also warrants, represents
and covenants that for a period of two years of the date any Product is
delivered to LifeWatch: (i) the Products shall conform to and shall perform in
accordance with the specifications set forth on

 

8

 

Annex B; and (ii) the
Products will, under normal and anticipated use, be free from design and
material operating and workmanship defects. THE WARRANTIES SET FORTH IN THIS
SECTION 16.B. AND THE OBLIGATIONS AND LIABILITIES OF CARD GUARD THEREUNDER, ARE
EXPRESSLY IN LIEU OF, AND LIFEWATCH HEREBY WAIVES AND RELEASES CARD GUARD FROM,
ANY AND ALL OTHER WARRANTIES, AGREEMENTS, GUARANTIES, CONDITIONS, DUTIES,
OBLIGATIONS, REMEDIES OR LIABILITIES, EXPRESS OR IMPLIED, ARISING BY LAW OR OTHERWISE
IN CONNECTION WITH SUCH MATTERS, INCLUDING WITHOUT LIMITATION ANY WARRANTY OF
MERCHANTABILITY WITH RESPECT TO THE PRODUCTS. NO AGREEMENT VARYING, ALTERING OR
EXTENDING CARD GUARD’S LIABILITY HEREUNDER WILL BE BINDING ON CARD GUARD UNLESS
IN WRITING AND SIGNED BY LIFEWATCH’S AND CARD GUARD’S DULY AUTHORIZED
REPRESENTATIVE.

 

c.         Card Guard shall repair any defects to
any Product covered under the warranty provided in Section 16.b. within 3 weeks
of the date it is notified of such defect, if such defect can be fixed on site
by LifeWatch or, if on site repair is not possible, within 3 weeks of the date
Card Guard receives such Product for repair. Any such defect shall be
corrected, at Card Guard’s option, by repairing or replacing the relevant
Product or part thereof, which shall be LifeWatch’s sole remedy for breaches of
warranty claims. The above warranty shall not apply to defects which are a
result of normal wear and tear.

 

d.         The warranty contained in Section 16.b.
shall not apply to: (i) any Products used under abnormal operating conditions
and been subject to misuse or neglect; or (ii) any Products altered or repaired
by anyone other than Card Guard.

 

17.                 Indemnity

 

Card Guard shall,
at its own expense, indemnify, defend and hold harmless LifeWatch and its
affiliates, successors and assigns, and their respective officers, directors,
partners, members, shareholders, agents, attorneys and employees (collectively,
the “LifeWatch Indemnitees”), from and against any and all claims,
demands, actions, liabilities, losses, damages, judgments, grants, costs and
expenses (including reasonable attorneys’ fees and disbursements) resulting
from (i) the inaccuracy or breach by Card Guard of any representation, warranty
or covenant included in this Agreement or any document ancillary thereto; (ii)
any product liability or other claims involving or in connection with any
Product (to the extent not covered by LifeWatch’s indemnity below); and (iii)
any alleged or actual infringement of a patent, copyright, trademark or privacy
or similar right of any third party by the Products, the Rights, or any other
materials provided by Card Guard to LifeWatch pursuant to this Agreement or any
preexisting or third party materials from which such items were prepared (other
than any Products altered or repaired by anyone other than Card Guard or
combined with any other products or intellectual property). In each instance to
which the foregoing indemnity pertains, LifeWatch shall cooperate fully with
Card Guard in all respects in connection with any such defense and any related
settlement negotiations. LifeWatch shall, at all

 

9

 

times have the option to
undertake and conduct the defense of any such claim, and such undertaking and
conducting of defense shall be at Card Guard’s expense if caused by a conflict
of interest (which is not the result of any claim caused by a breach of this
Agreement by any LifeWatch Indemnities or the grossly negligent or willful act
or omission of any LifeWatch Indemnities) between Card Guard and LifeWatch with
respect to such representation. Card Guard shall keep LifeWatch fully advised
of all significant developments and shall not enter into a settlement of any
relevant claim without LifeWatch’s prior written approval, such approval not to
be unreasonably withheld. LifeWatch shall respond to any notice of a proposed
settlement within 30 days. Notwithstanding anything herein to the contrary,
Card Guard shall not be required to indemnify, defend or hold harmless any LifeWatch
Indemnitee against any claim to the extent that such claim was caused by a
breach of this Agreement by any LifeWatch Indemnitee or the grossly negligent
or willful act or omission of any LifeWatch Indemnitee.

 

LifeWatch shall,
at its own expense, indemnify, defend and hold harmless Card Guard and its
affiliates, successors and assigns, and their respective officers, directors,
partners, members, shareholders, agents, attorneys and employees (collectively,
the “Card Guard Indemnitees”), from and against any and all claims,
demands, actions, liabilities, losses, damages, judgments, grants, costs and
expenses (including reasonable attorneys’ fees and disbursements) resulting
from (i) the inaccuracy or breach by LifeWatch of any representation, warranty
or covenant included in this Agreement or any document ancillary thereto, or
(ii) in connection with its provision of the Services (to the extent such is
not a result of a matter covered by the prior paragraph). In each instance to
which the foregoing indemnity pertains, Card Guard shall cooperate fully with
LifeWatch in all respects in connection with any such defense and any related
settlement negotiations. Card Guard shall, at all times have the option to
undertake and conduct the defense of any such claim, and such undertaking and
conducting of defense shall be at LifeWatch’s expense if caused by a conflict
of interest (which is not the result of any claim caused by a breach of this
Agreement by any Card Guard Indemnities or the grossly negligent or willful act
or omission of any Card Guard Indemnities) between Card Guard and LifeWatch
with respect to such representation. LifeWatch shall keep Card Guard fully
advised of all significant developments and shall not enter into a settlement
of any relevant claim without Card Guard’s prior written approval, such
approval not to be unreasonably withheld. Card Guard shall respond to any
notice of a proposed settlement within 30 days. Notwithstanding anything herein
to the contrary, LifeWatch shall not be required to indemnify, defend or hold
harmless any Card Guard Indemnitee against any claim to the extent that such
claim was caused by any acts for which LifeWatch is indemnified pursuant to the
first paragraph of this Section 17 or for any breach of this Agreement by any
Card Guard Indemnitees or the grossly negligent or willful act or omission of
any Card Guard Indemnitees.

 

18.                 Force Majeure

 

Neither party
shall be held responsible for any delay or failure in performance of any part
of this Agreement or any order, to the extent such delay or failure is caused
by fire, flood, explosion, war, strike, embargo, new and unexpected

 

10

 

government
intervention(s), civil or military authority, act of God, or other similar causes
beyond its reasonable control and without the fault or negligence of the
delayed or nonperforming party (“Force Majeure”).  If any Force Majeure occurs, the party delayed
or unable to perform shall give immediate notice to the other party and the party
affected by the other’s delay or inability to perform may elect to: (1) suspend
this Agreement or any outstanding order(s) for the duration of the Force
Majeure and, at its election, for an additional period of up to 45 days
thereafter and (i) at its option, directly or indirectly, manufacture, buy,
sell, obtain or furnish elsewhere Products or services to be bought or sold
under this Agreement or any outstanding order(s) and deduct from any commitment
the quantity bought, sold, obtained or furnished or for which commitments have
been made elsewhere and (ii) once the Force Majeure event ends (or within 45
days after such time), resume performance under this Agreement or any
outstanding order with an option in the affected party to extend the period of this
Agreement by up to the length of time the Force Majeure lasted plus any
additional time during which this Agreement was suspended and/or (2) when the
delay or performance continues for a period of at least 30 days, terminate, at
no charge, any part of this Agreement relating to Products not already shipped
or services not already performed. Unless written notice is given within 45
days after the affected party is notified of the Force Majeure, option (1)
shall be deemed selected.

 

19.                 Miscellaneous

 

a.         This Agreement (together with any
exhibits, purchase orders, invoices, terms of sale, etc. relating to sales of
the Products to LifeWatch) sets forth the entire agreement between the parties,
and supersedes any prior written or oral arrangements or understandings with
respect to the subject matter herein. This Agreement may not be amended,
modified or terminated in any respect except in a written document signed by
both parties.

 

b.         The failure of either party at any time
to enforce any right or remedy available to it under this Agreement or
otherwise with respect to any breach or failure by the other party shall not be
construed to be a waiver of such right or remedy with respect to that or any
other breach or failure by the other party.

 

c.         If any of the provisions of this
Agreement shall be invalid or unenforceable, such invalidity or
unenforceability shall not invalidate or render unenforceable the entire
Agreement, but rather the entire Agreement shall be construed as if not
containing the particular invalid or unenforceable provision or provisions, and
the rights and obligations of the parties shall be construed and enforced
accordingly.

 

d.         All notices and other communications
hereunder must be in writing and delivered by registered or certified mail, by
facsimile telephone, E-mail, or by overnight courier to the parties’ respective
addresses first listed above. Notices shall be deemed received: if made by
certified mail - upon receipt or 10 days after being sent, if made by courier -
upon receipt, if made by facsimile or e-mail - upon successful sending of such
notice, unless such are sent on a day which is not a business day or after 4 PM
on a day which is a business day, in which case such shall be deemed received
on

 

11

 

the first business day
after such are sent. All notices shall be delivered to the addresses noticed in
the opening paragraph to this Agreement or any subsequent addresses that either
party may provide for itself in the manner set forth herein.

 

e.         This Agreement will bind and inure to
the benefit of each party hereto and its respective successors and permitted
assigns. Neither party may assign any of its rights or delegate any of its
duties and obligations hereunder (directly or indirectly, including in
connection with a sale of its business) to any person, firm or entity without
the other party’s prior written consent, except that notwithstanding anything
herein to the contrary: (i) either party may delegate and assign any or all of
its obligations, duties or rights to any affiliate of such party, except that
such delegation or assignment will not relieve any assigning party of any its
obligations hereunder; and (ii) either party may delegate and assign any or all
of its obligations, duties or rights to any third party not affiliated with
such party who purchases all or substantially all of such assigning party’s
business, in which case (and provided such assigning party provides the other
party with notice of such sale and at the time of such sale such purchaser is
solvent and such assigning party in good faith believes such purchaser is able
to fulfill its obligations under this Agreement) assigning party shall have no
further liabilities pursuant to this Agreement except with respect to events
occurring prior to such sale. Any attempted assignment or delegation in
contravention of this provision shall be void and ineffective.

 

f.          All references to “$” or dollars
herein mean and refer only to lawful currency of the United States of America.

 

g.         Neither party may make any press
release or otherwise disclose to any person (other than its authorized
representatives) the terms or (solely with respect to public disclosures) the
existence of this agreement without the prior written consent of the other
party.

 

h.         The headings in this Agreement are
solely for convenience of reference and shall not affect its interpretation.

 

i.          Each of the parties shall, without
further consideration, take such action and execute and deliver such documents
as may reasonably be necessary to carry out this Agreement.

 

j.          This agreement may be executed in two
or more counterparts which together shall constitute the same instrument.

 

 

[END OF
TEXT]

 

12

 

IN WITNESS
WHEREOF, the undersigned have caused this Agreement to be executed as of the
date first set forth above.

 

 

	
  Card
  Guard:

  	
   

  	
  CARD
  GUARD SCIENTIFIC SURVIVAL LTD.

  
	
   

  	
   

  	
   

  
	
  

  	
   

  	
  By: 

  	
  

  /s/ Illegible

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Yacov Geva

  
	
   

  	
   

  	
  Title:

  	
  CHAIRMAN & C.E.O

  

 

 

	
  LifeWatch:

  	
   

  	
  LIFEWATCH
  HOLDING CORPORATION 

  
	
   

  	
   

  	
   

  
	
  

  	
   

  	
  By: 

  	
  /s/ Frederick J.
  Mindermann

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Frederick J. Mindermann

  
	
   

  	
   

  	
  Title:

  	
  President & CEO

  

 

13

 

Annexes

 

Annex
A       Products

 

Annex B        Manufacturing Specifications

 

Annex C        Maintenance and Support Terms

 

14

 

ANNEX A

PRODUCTS

 

CG-6108 ACT

Ambulatory Cardiac Telemetry

The CG-6108 ACT
wireless cardiac telemetry system integrates autotrigger technology and
telecommunication technologies to automatically detect, capture and transmit
cardiac arrhythmias from a patient to a healthcare provider for analysis.

•      Small “user friendly” sensor.

•      No patient interaction is necessary
(optional - manual patient activation button).

 

General Description

The revolutionary
CG-6108 ACT is an automatically activated cardiac monitoring system that
requires no patient intervention to capture or transmit an arrhythmia when it
occurs. Upon arrhythmia detection, the CG-6108 ACT utilizes an integrated
cellular phone to transmit the data to a healthcare provider for analysis.

 

•      Automatic detection and transmission of
arrhythmic events:

            — Atrial
fibrillation (any rate)

            —
Bradycardia

            —
Tachycardia

            — Pause

•      Manual activation button

•      Long battery life

 

Intended Use

Intended for use by
patients who experience transient symptoms that may suggest cardiac arrhythmia,
and which may be associated with the following conditions:

Post AF Ablation, Post Coronary Intervention,
Syncope, Anti-Arrhythmic Drug loading, Compliance Limitations, and Pediatrics -
High risk

Special Features

•      Capture arrhythmia onset and escape

•      Physician requested analysis of selected
portions (21 days / 500 hours) of full disclosure ECG recording

•      Capture of rate histogram for specified
duration to manage rate in patients with chronic Atrial Fibrillation.

 

15

 

ANNEX B

MANUFACTURING
SPECIFICATIONS

 

 

Technical Specifications
for CG-6108 ACT

 

	
  Input
  Impedance

  	
  20
  MOhm

  
	
   

  	
   

  
	
  Input
  dynamic range

  	
  +5
  mVp-p

  
	
   

  	
   

  
	
  Current
  consumption (data transmission)

  	
   

  
	
   

  	
   

  
	
  Continuous BT sniff mode

  	
  6

  
	
   

  	
   

  
	
  Normal
  BT mode (max)

  	
  40 mA

  
	
   

  	
   

  
	
  CMRR

  	
  60 dB

  
	
   

  	
   

  
	
  DC
  offset correction

  	
  165
  mV

  
	
   

  	
   

  
	
  Band
  width

  	
  60 Hz

  
	
   

  	
   

  
	
  Recording

  	
  1-lead,
  Up to 24 hours BT

  
	
   

  	
   

  
	
  Bluetooth
  transmission range

  	
  Open
  space10 meters

  
	
   

  	
   

  
	
  Transmission
  mode (BT protocol)

  	
  SPP
  profile

  
	
   

  	
   

  
	
  Battery
  type

  	
  3.6V
  AA

  
	
   

  	
   

  
	
  Battery
  life

  	
  Up to
  10 days

  
	
   

  	
   

  
	
  MTBF
  (hours)

  	
  10000

  
	
   

  	
   

  
	
  Operating
  temperature

  	
  +10
  to +40°C (50 to 104°F)

  
	
   

  	
   

  
	
  Transport
  &storage temperature -

  	
  20 to
  +65°C (-4 to 149°F)

  
	
   

  	
   

  
	
  Relative
  humidity

  	
  30 to
  85%

  
	
   

  	
   

  
	
  Dimensions
  (max.)

  	
  75 x
  58 x 23 mm

  
	
   

  	
   

  
	
  Net Weight

  	
  54 gr

  

 

16

 

ANNEX C

MAINTENANCE AND SUPPORT

 

APPENDIX C TO THE AGREEMENT DATE
November 30, 2006

Between LifeWatch Holding
Corporation and Card Guard Scientific Survival Ltd

 

 

 

MAINTENANCE AND SUPPORT AGREEMENT

 

between

 

Card Guard Scientific Survival Ltd and Israeli company having
registration number 556090-3212, and having its principal place of business at
2 Pekeris Street, Rehovot 76100, Israel, hereinafter called “Seller”

 

and

 

LifeWatch Holding Corporation, a
US company having its principal place of business at 1351A abbott CT. Buffalo
Grove IL 60089, United States Of America, hereinafter Called “LifeWatch”.

 

 

CONTENTS:

 

	
  1.

  	
   

  	
  Definitions

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Scope of this MSA

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Service Order Procedure

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Support materials

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Support For Non-Commercial Systems

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Escalation Routines

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Performance Reviews

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Subcontracting

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  Support Service Term

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  Term and Termination

  	
   

  	
  9

  

 

17

 

PREAMBLE

 

A.       WHEREAS, LifeWatch and
Seller simultaneously herewith have signed on November 30, 2006 an agreement
(hereinafter: the “Agreement”) in
which LifeWatch will purchase from the Seller the LifeStar ACT (hereinafter:
the “Product”) according to the terms described in the Agreement to which this
Maintenance and Support Agreement (“MSA”) forms an integral part;

 

B         WHEREAS, Seller is willing
to furnish such Maintenance and Support Services for the Product in accordance
with the terms and conditions stated herein.

 

NOW, THEREFORE, the Parties
agree as follows:

 

1          DEFINITIONS

 

1.1       Capitalized terms used
in this Maintenance and Support Agreement shall have the meaning assigned to
them in the Agreement.

 

“Swap Repair” means speedy
delivery of replacements for defective hardware, with equivalent new of repair
hardware.

 

“Call-back Time” means the time
between Seller’s receipt of LifeWatch Support Organization’s request for
Support Service and when Seller contracts the LifeWatch Support Organization.

 

“CSR Answer” means the report
provided to the LifeWatch Support Organization pursuant to the terms and
conditions of the MSA, containing information relating to the Error identified
and detailing Seller’s proposed course of action to remedy the Error.

 

“Customer Service Request” or “CSR”
means a request for assistance issued by LifeWatch Support Organization to
Seller. “End-of-Life” or “EOL” means the point
when Seller decides to discontinue a Product and its maintenance will remain
for five (5) years whatever earliest.

 

“LifeWatch Support Organization”
means the local and/or regional LifeWatch organization responsible for
providing Support Services.

 

“Error(s)” means any material
defects in material, workmanship or design or material non-conformities,
malfunctions or other material problems, which cause the Product not to
perform, function or operate substantially in accordance with the
specifications (as updated) in the documentation and Support Materials.

 

“Final Solution” Hardware Update”
means the tested and approved permanent hardware repair, which becomes part of
the released Product.

 

“First Line Support” means the
level of customer support to be performed by the LifeWatch Support Organization
in accordance with the training provided by Seller. “Helpdesk
Service” means the Seller’s organization responsible for responding
to LifeWatch Support Organization in matters related to Support Service activities.

 

18

 

“Maintenance” means any activity
intended to keep the Product to function substantially in accordance with their
specifications. The term may include tests, measurements, replacements,
adjustments, changes and repairs.

 

“MSA” means this Maintenance and
Support Agreement.

 

“Order” or “Service Contract”
means a written purchase order, issued by LifeWatch which refers to this MSA
and orders the supply of Support Services to be performed by the Seller in
accordance with this MSA and as otherwise agreed upon.

 

“Restoration” means the
action(s) required for preventing the reoccurrence of an Error and/or any
underlying cause(s) of an Error. The goal is to have the system up and running
in the same conditions it was before the Error occurred. Examples of actions
are Final Solutions.

 

“Second Line Support” means the
level of customer support to be provided by Seller, and when agreed by
LifeWatch, which support does not include developing enhancements or/and new
functionality into the Product.

 

“Support Services” means the
support activities other than Seller’s efforts to make the Product to function
substantially in accordance with their specifications during the warranty term,
and which Seller makes generally commercially available and which are described
in Article 9.

 

“Support Materials” means the
appropriate documentation required to support the use, installation and
maintenance of the Product, including any human readable program listings, flow
charts, logic diagrams, input and output forms, manuals, specifications,
instructions, and other materials related to the Product.

 

“Third Line Support” means the
level of product support to be provided by Seller that requires changes and/or
modifications in the source code of the Product.

 

“Working Level Document or WLD”
means the document to be jointly created by the Parties, which will describe
the Support Organization, procedures, contacts, and criteria of how the Support
Services will be handled for the Product.

 

19

 

2          SCOPE OF THIS MSA

 

2.1       This MSA comprises the
terms and conditions under which LifeWatch shall purchase Support Services, by
issuing Orders and paying for such Support Services to Seller, except when Seller
provides fixes and support under its warranty as provided in the Agreement. All
Support Services shall be performed at Seller’s facilities unless otherwise set
forth herein or as mutually agreed upon between the Parties.

 

2.2       Subject to the terms and
conditions of this MSA and the Agreement, Seller shall provide LifeWatch with
the 2nd and 3rd Line Support Services for the Product and
the Support Materials as set forth in this MSA, commencing on Order acceptance
by Seller for the Support Services, and for as long as Seller makes the Support
Services for the Product commercially available and according to the conditions
in the Agreement.

 

2.3       Subject to Seller’s
warranty policy as prescribed in the Agreement, Seller shall correct any
Error(s) in the Product, so that the Product will perform, function and operate
substantially in accordance with the specifications and Support Materials (as
updated), with the terms of the Agreement and in accordance with the other
related documentation furnished by Seller from time to time.

 

2.4       Seller shall maintain an
organization and shall be prepared with reasonably qualified and competent
personnel that can carry out the Support Services as set out in this MSA, under
an Order issued during the term of this MSA.

 

2.5       As applicable, Seller
shall be responsible for providing Support Services in accordance with this MSA
and the WLA, with respect to the Product sold to LifeWatch by Seller.

 

2.6       Seller shall provide
LifeWatch with phone numbers and e-mail address for the Support Service, and
any other contact information that LifeWatch would need under this MSA. This
information shall always be kept updated in the WLA.

 

2.7       The Parties shall keep
each other informed of any and all changes to contact lists, emergency numbers
and any other information relevant to this MSA. Any such changes shall be
promptly notified to each Party in writing.

 

2.8       Unless otherwise agreed
upon in writing, the Parties hereby acknowledge and agree that LifeWatch, which
has ordered Support Services from Seller, shall be the sole interface with the
end user and all activities and communication with regard to the Support
Services for the Product of the end users, for whatever reason, shall be
coordinated through LifeWatch. If an end user should contact the Seller
directly on a Support Service issue, Seller shall not take any actions before
informing LifeWatch.

 

2.9       If Seller is not able to
provide the Support Services under the terms of this MSA, or if LifeWatch needs
to negotiate other terms in order to create consistency with the ones LifeWatch
has already agreed with the end user, the Parties agree to discuss reasonable
changes in the relevant terms and conditions to this MSA, before such
commitment is made by LifeWatch, but no changes shall be binding on the Parties
unless mutually and expressly agreed upon in writing.

 

20

 

2.10     This MSA
shall be deemed to be an integrated part of the Agreement. Accordingly, all
terms and conditions of the Agreement shall apply to this MSA. If there is any
conflict between the terms of the Agreement and this MSA, the terms of the
Agreement shall apply.

 

2.11     Seller
shall use commercially best efforts to provide the Support Services as agreed
upon. For the avoidance of doubt, Seller is fully responsible for all acts or
omissions by its employees, contractors or consultants, and LifeWatch is fully
responsible for all acts or omissions by their employees, contractors or
consultants.

 

3          SERVICE
ORDER PROCEDURE

 

3.1       Seller
shall without undue delay, and in no event later then ten (10) Business Days
after receipt of the Order, acknowledge such receipt of the Order to the
Seller, and agree to provide the Support Services to LifeWatch. Seller shall
not disapprove an Order unreasonably.

 

3.2       The
order issued by LifeWatch shall refer to this MSA and state the Product to be
supported and maintained, the applicable Support Materials, the period during
which the Maintenance and Support Services are to be provided and the fees to
be paid for the services in accordance with this MSA.

 

3.3       LifeWatch
Support Organization may request changes to a future Order for the Support
Services, as LifeWatch deems necessary, if LifeWatch makes such request at
least thirty (30) days prior to the start of the Seller’s delivery of such
Support Services. In such situations the Parties agree to discuss reasonable
changes in the relevant terms to this MSA, before such commitment is made, but
no changes shall be binding on the Parties unless mutually agreed upon in
writing.

 

4          SUPPORT
MATERIALS

 

4.1       Seller
shall deliver the relevant Support Materials to LifeWatch under the terms of
the Agreement. Updates of Support Materials will be provided according to the
following:

 

•         The LifeWatch Support Organization
shall have full access to existing updates of the Support Materials when
updates are made generally commercially available.

•         Seller shall deliver the applicable
updated set of Support Materials with every update or upgrade of the Product.

•         Seller shall provide LifeWatch with two
(2) soft- copies of available manuals and/or manual updates relating to the
Product purchased from Seller.

 

5                SUPPORT FOR NON-COMMERCIAL
SYSTEMS

 

5.1       Seller’s
responsibilities regarding the non-commercial systems shall generally be limited
to, providing of Temporary Solutions, updates and/or upgrades handling using
commercially reasonable efforts and Seller shall provide such limited Support
Services only during Seller’s Business Hours.

 

21

 

6          ESCALATION ROUTINES

 

6.1       The Parties shall
establish a management escalation procedure between LifeWatch and Seller for
the case where the normal interfaces do not work in a reasonably satisfactory
manner. Seller will use best efforts to make a Seller representative on a
managerial level available for LifeWatch contact. Such escalation procedures
shall be set forth in the Working Level Document.

 

6.2       CSR Handling

 

6.3       Seller shall process and
administer all incoming CSRs from LifeWatch concerning the Product. The CSR is
the trigger by which LifeWatch requests Support Services under an Order from
Seller.

 

6.4       LifeWatch may issue CSRs
to the Seller via electronic mail or fax.

 

6.5       Seller shall have a
single point of contact person for each CSR. Seller shall promptly inform
LifeWatch when Seller has received the CSR.

 

6.6       LifeWatch shall provide
Seller in writing with all necessary information, such as logs and traces,
describing the Error for each CSR. If Seller requests reasonably additional
information or support from LifeWatch to trace the Error, such request shall be
performed without undue delay.

 

6.7       Seller shall use
commercially best efforts to process all CSRs until the Product perform
substantially in accordance with its specifications and each individual CSR has
been declared finished by LifeWatch. Seller will notify LifeWatch immediately
if there is an action required of LifeWatch.

 

6.8       Technical Analysis

 

                       6.8.1    Seller shall use best efforts to provide the
CSR Answer within the time specified in Annex 1 of this MSA.

 

                       6.8.2    The CSR Answer will contain Seller’s
proposed course of action to remedy the fault or Error. In applicable cases the
CSR Answer shall contain a Workaround or a proposed date for a Temporary or
Final Solution.

 

                       6.8.3    A CSR Answer from Seller shall refer to the
original LifeWatch CSR identity.

 

            6.9       CSR Classification

 

                       6.9.1    LifeWatch shall classify each CSR with
severity Major or Minor dependent on the severity of the Error, according to
the definitions below. The Parties shall discuss and agree on the severity
level in good faith.

 

                       6.9.2    The following two severity classes shall be
used to classify the Error:

 

22

 

	
  Severity

  	
   

  	
  Definition

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The presence of a major
  severity situation (“Major operations impact”) implies that
  certain functions are affected but the situation can be circumvented so that
  the Product can be used, however with a significant loss of service and/or
  performance, with a less than material but more than insignificant loss of
  revenues.

  
	
  Major

  	
   

  	
  “Major operations impact” means that the situation
  causes loss of service, or it requires a manual bypass to restore
  functionality, which means situations included but not limited to:

  
	
   

  	
   

  	
  •       Degraded performance of the Product;

  
	
   

  	
   

  	
  •       Incorrect behavior of the Product.

  
	
  Minor

  	
   

  	
  “Minor operations impact” means that there is no
  loss of service. The presence of a minor
  severity situation implies that there is incorrect behavior within
  the Product but the situation does not impede the operation of the Product.

  

6.10     HANDLING OF MAJOR OR MINOR SEVERITY ERRORS

Input:

•        The activity is triggered
by a CSR with severity Major or Minor. 

Deliverable:

•        A CSR Answer within the
lead-time defined in Annex 1 of this MSA.

6.11     FINAL SOLUTION

If applicable, Seller’s
CSR Answer will state the date of availability of the Final Solution.

6.12     HANDLING OF HARDWARE SERVICES

6.12.1     Seller will ship repaired or replacement
parts within thirty (30) days of receipt of the faulty part at Seller’s repair center.
Seller may, at its option, repair or replace any faulty part with a factory-
reconditioned part.

6.12.2     LifeWatch shall be responsible for the
costs of shipping faulty parts to Seller’s repair center and for the shipping
of the repaired or replacement parts to LifeWatch.

6.12.3     In the event LifeWatch requests the
replacement of a Product, Seller will ship the replacement part from its
nearest stocking location to LifeWatch within 72 hours of receiving the
request. LifeWatch will ship the faulty Product to Seller by courier within
three business days of receiving the replacement part. All such shipments will
be made FOB destination unless otherwise agreed between the parties.

 

23

 

            This shall be limited to
1/2% of the delivered Product according to the Contract, or type of units,
necessary to replace, in order to fulfill the functionality as specified, and
may in its worst case mean a replacement of the complete Product.

 

6.12.4              Seller
shall make product and /or repair available three (3) years after “Last Time
Buy” (LTB).

 

6.13     ADDITIONAL REQUIREMENTS

 

6.13.1  Seller will inform
LifeWatch about known Errors, which have been discovered in non-LifeWatch
delivered systems.

 

6.13.2  Any Support Services of
the Product ordered by LifeWatch that are not ordered under this MSA will be
approved by the LifeWatch Support Organization and by Seller in writing, before
the service is carried out.

 

7          PERFORMANCE REVIEWS

 

7.1       The Parties shall review
their performance under this MSA twice a year (or as otherwise agreed upon by
the Parties in writing from time to time), in order to improve the
inter-working between the Parties under this MSA.

 

8.         SUBCONTRACTING

 

8.1       Seller may subcontract
any parts or portions of the Support Services. Seller shall remain responsible
for the performance of the Support Services as if performed by Seller.

 

9.         SUPPORT SERVICE
TERMS

 

9.1       At the end of the
warranty period as defined in the agreement, the following options shall be
available to LifeWatch:

 

            (1) Entering the MSA
for an annual cost of 18% of the Product price.

 

            Or

 

            (2) Paying for each
repair separately subject to the prices of “Return Materials Authorization”
(“RMA”) which shall be published by the Seller once a year.

 

            LifeWatch will
acknowledge which option is elected by written notification to the Seller.

 

9.2       PAYMENT TERMS

 

            9.2.1    All prices are quoted and all payments shall
be made in USD.

 

            9.2.2    Payment of invoices for the Support Services
shall be made by LifeWatch pursuant to Article ___, within sixty (60) days
after receipt of invoice.

 

24

 

9.3       WARRANTY

 

9.3.1    The terms and conditions
for Seller’s warranty with respect to the Product and Support Services have
been exclusively set forth in the Agreement.

 

10        TERM AND TERMINATION

 

10.1     This MSA shall have the
same terms and termination conditions as stated in the Agreement.

 

10.2     Subject to LifeWatch
paying all support and maintenance fees, and unless otherwise agreed upon, this
MSA shall be valid during the term of and for one (1) year from the termination
or expiration of the Agreement.

 

10.3     The termination or
expiration of this MSA for any reason whatsoever shall be without prejudice to
any right or obligation of any Party hereto in respect of this MSA, which has
arisen prior to such termination of expiration.

 

IN WITNESS WHEREOF, the Parties have duly signed this MSA, in
duplicate, at the place and on the day written below.

 

_______, 2007 - _____ - _____  
January 31, 2007 - ____ - _____

 

Card Guard Scientific Survival Ltd          LifeWatch
Holding Corporation

 

By____________________       By
____________________

Name: _________________       Name:
__________________

Title: __________________      Title:
____________________

 

 

 

By____________________       By ____________________

Name: _________________       Name:
__________________

Title: __________________      Title:
____________________

 

 

25

 

ANNEX 1

 

 

SPECIFICATION OF VARIABLES FOR SUPPORT SERVICES

 

 

STANDARD

 

	
  MAJOR

  	
  Availability: Business Hours

  
	
   

  	
   

  
	
  Call-back time

  	
  Response within 3 Business Days

  
	
   

  	
   

  
	
  Remedy

  	
  Resolution within 2 weeks

  
	
   

  	
   

  
	
  Restoration

  	
  Resolution within 5 weeks

  
	
   

  	
   

  
	
  MINOR

  	
  Availability: Business Hours

  
	
   

  	
   

  
	
  Call-back time

  	
  Response within 5 Business
  Days

  
	
   

  	
   

  
	
  Remedy

  	
  Resolution within 4 weeks

  
	
   

  	
   

  
	
  Restoration

  	
  Resolution within 24 weeks

  

 

Product Services

Repair/Replaced Unit shipped within 30 calendar days
of receipt of the faulty part at Seller’s repair center

 

Swap Repair

 

Product dispatched within 72 hours

 

Note:            The resolution time is calculated
from the time the Error is reported to Seller technical service center. Seller
shall continue to work on the Error until LifeWatch accepts the proposed
solution.

 

26Exhibit 10.10

 

OFFICE LEASE

 

THIS OFFICE LEASE is executed this 15th day of November, 2006, by and
between OIC MIDWEST LLC, a Delaware limited liability company (“Landlord”), and LIFEWATCH HOLDING
CORPORATION, a Delaware corporation d/b/a LifeWatch, Inc. (“Tenant”).

 

ARTICLE 1 -
LEASE OF PREMISES

 

Section 1.01. Basic Lease
Provisions and Definitions.

 

(a)                                  Leased
Premises shall be located in the building commonly known as O’Hare
International Center II (the “Building”), at 10255 Higgins Road, Rosemont,
Illinois 60018, within O’Hare International Center (the “Park”):

 

(i)                                     Commencing
on the Original Premises Commencement Date (as defined herein), the Leased
Premises (shown outlined on Exhibit A
attached hereto) shall be Suite 120 and shall be also described as the
“Original Premises;” and

 

(ii)                                  Commencing
on the Additional Space Commencement Date (as defined herein), the Leased
Premises (shown outlined on Exhibit A-1
attached hereto) shall also include Suites 100, 140, 150 and 700 (the “Additional
Space”).

 

After the Additional Space Commencement Date, the Original Premises and
Additional Space shall hereinafter be collectively referred to as the “Leased
Premises” unless specified otherwise.

 

(b)                                 Rentable
Area:

 

(i)                                     Commencing
on the Original Premises Commencement Date, the Leased Premises shall be
approximately 6,185 rentable square feet (the Original Premises only); and

 

(ii)                                  Commencing
on the Additional Space Commencement Date, the Leased Premises shall be
approximately 50,308 rentable square feet consisting of the Original Premises
(6,185 rentable square feet) and the Additional Space (44,123 rentable square
feet).

 

The Rentable Area includes the square footage within the Leased
Premises plus a pro rata portion of the square footage of the common areas
within the Building in accordance with a modified BOMA standard in effect as of
the date of this Lease.

 

(c)                                  Tenant’s
Proportionate Share:

 

	
  Original
  Premises:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Months 1-11

  	
   

  	
  0.00

  	
  %

  
	
  Months 12-146

  	
   

  	
  2.44

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Additional Space:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Months 1-11

  	
   

  	
  0.00

  	
  %

  
	
  Months 12-144

  	
   

  	
  17.42

  	
  %

  

 

(d)                                 Minimum
Annual Rent:

Original Premises: (approximately 6,185 rentable square feet)

 

	
  Months 1-11

  	
   

  	
  $

  	
   0.00

  	
   (11 months)

  
	
  Month 12

  	
   

  	
  $

  	
   6,185.00

  	
   (1 month)

  
	
  Months 13-24

  	
   

  	
  $

  	
   75,766.20

  	
   per year

  
	
  Months 25-36

  	
   

  	
  $

  	
   77,312.52

  	
   per year

  
	
  Months 37-48

  	
   

  	
  $

  	
   78,858.72

  	
   per year

  
	
  Months 49-60

  	
   

  	
  $

  	
   80,405.04

  	
   per year

  
	
  Months 61-72

  	
   

  	
  $

  	
   81,951.24

  	
   per year

  
	
  Months 73-84

  	
   

  	
  $

  	
   83,497.56

  	
   per year

  
	
  Months 85-96

  	
   

  	
  $

  	
   85,043.76

  	
   per year

  
	
  Months 97-108

  	
   

  	
  $

  	
   86,589.96

  	
   per year

  

 

 

	
  Months 109-120

  	
   

  	
  $

  	
   88,136.28

  	
   per year

  
	
  Months 121-132

  	
   

  	
  $

  	
   89,682.48

  	
   per year

  
	
  Months 133-144

  	
   

  	
  $

  	
   91,228.80

  	
   per year

  
	
  Months 145-146

  	
   

  	
  $

  	
   15,462.50

  	
   (2 months)

  

 

	
  Additional Space:
  (approximately 44,123 rentable square feet)

  
	
   

  	
   

  	
   

  	
   

  
	
  Months 1-11

  	
   

  	
  $

  	
  0.00

  	
   (11 months)

  
	
  Month 12

  	
   

  	
  $

  	
  44,123

  	
   (1 month)

  
	
  Months 13-24

  	
   

  	
  $

  	
  540,506.76

  	
   per year

  
	
  Months 25-36

  	
   

  	
  $

  	
  551,537.52

  	
   per year

  
	
  Months 37-48

  	
   

  	
  $

  	
  562,568.28

  	
   per year

  
	
  Months 49-60

  	
   

  	
  $

  	
  573,599.04

  	
   per year

  
	
  Months 61-72

  	
   

  	
  $

  	
  584,629.80

  	
   per year

  
	
  Months 73-84

  	
   

  	
  $

  	
  595,660.56

  	
   per year

  
	
  Months 85-96

  	
   

  	
  $

  	
  606,691.20

  	
   per year

  
	
  Months 97-108

  	
   

  	
  $

  	
  617,721.96

  	
   per year

  
	
  Months 109-120

  	
   

  	
  $

  	
  628,752.72

  	
   per year

  
	
  Months 121-132

  	
   

  	
  $

  	
  639,783.48

  	
   per year

  
	
  Months 133-144

  	
   

  	
  $

  	
  650,814.24

  	
   per year

  
							

 

(e)                                  Monthly
Rental Installments:

 

	
  Original Premises:
  (approximately 6,185 rentable square feet)

  
	
   

  	
   

  	
   

  	
   

  
	
  Months 1-11

  	
   

  	
  $

  	
   0.00  per month

  
	
  Month 12

  	
   

  	
  $

  	
   6,185.00  per month

  
	
  Months 13-24

  	
   

  	
  $

  	
   6,313.85  per month

  
	
  Months 25-36

  	
   

  	
  $

  	
   6,442.71  per month

  
	
  Months 37-48

  	
   

  	
  $

  	
   6,571.56  per month

  
	
  Months 49-60

  	
   

  	
  $

  	
   6,700.42  per month

  
	
  Months 61-72

  	
   

  	
  $

  	
   6,829.27  per month

  
	
  Months 73-84

  	
   

  	
  $

  	
   6,958.13  per month

  
	
  Months 85-96

  	
   

  	
  $

  	
   7,086.98  per month

  
	
  Months 97-108

  	
   

  	
  $

  	
   7,215.83  per month

  
	
  Months 109-120

  	
   

  	
  $

  	
   7,344.69  per month

  
	
  Months 121-132

  	
   

  	
  $

  	
   7,473.54  per month

  
	
  Months 133-144

  	
   

  	
  $

  	
   7,602.40  per month

  
	
  Months 145-146

  	
   

  	
  $

  	
   7,731.25  per month

  
							

 

	
  Additional Space:
  (approximately 44,123 rentable square feet)

  
	
   

  	
   

  	
   

  	
   

  
	
  Months 1-11

  	
   

  	
  $

  	
   0.00  per month

  
	
  Month 12

  	
   

  	
  $

  	
   44,123.00
   per month

  
	
  Months 13-24

  	
   

  	
  $

  	
   45,042.23
   per month

  
	
  Months 15-36

  	
   

  	
  $

  	
   45,961.46
   per month

  
	
  Months 37-48

  	
   

  	
  $

  	
   46,880.69
   per month

  
	
  Months 49-60

  	
   

  	
  $

  	
   47,799.92
   per month

  
	
  Months 61-72

  	
   

  	
  $

  	
   48,719.15
   per month

  
	
  Months 73-84

  	
   

  	
  $

  	
   49,638.38
   per month

  
	
  Months 85-96

  	
   

  	
  $

  	
   50,557.60
   per month

  
	
  Months 97-108

  	
   

  	
  $

  	
   51,476.83
   per month

  
	
  Months 109-120

  	
   

  	
  $

  	
   52,396.06
   per month

  
	
  Months 121-132

  	
   

  	
  $

  	
   53,315.29
   per month

  
	
  Months 133-144

  	
   

  	
  $

  	
   54,234.52
   per month

  
					

 

	
  (f)

  	
  [Intentionally Omitted].

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (g)

  	
  Target Commencement Date:

  	
  Original Premises:

  	
  January 1, 2007

  
	
   

  	
   

  	
  Additional Space:

  	
  March 1, 2007

  

 

	
  (h)

  	
  Lease Term:

  	
  Original Premises:

  	
  Twelve (12) years and two (2) months

  
	
   

  	
   

  	
  Additional Space:

  	
  Twelve (12) years

  
	
   

  	
   

  	
   

  	
   

  
	
  (i)

  	
  Security Deposit: $650,000.00 letter of credit

  	
   

  

 

2

 

(j)                                     Broker(s):
 Duke Realty Services, LLC representing
Landlord and Cushman and Wakefield representing Tenant.

 

(k)                                  Permitted
Use:  General, administrative and
executive office and related purposes. To the extent permitted by applicable
laws, rules and ordinances, Tenant shall also have the right to use a
portion of the Leased Premises for (i) light assembly and manufacturing,
and (ii) a private daycare facility for use by Tenant’s employees only.

 

(l)                                     Address
for notices and payments are as follows:

 

	
  Landlord:

  	
   

  	
  OIC Midwest LLC

  c/o Duke Realty Corporation

  Attn: Vice President, Property Management

  6133 N. River Road, Suite 200 

  Rosemont, IL 60018

  
	
   

  	
   

  	
   

  
	
  With payments to:

  	
   

  	
  OIC Midwest LLC 

  c/o Duke Realty Limited Partnership

  75 Remittance Drive, Suite 3205 

  Chicago, IL 60675-3205

  
	
   

  	
   

  	
   

  
	
  Tenant (prior to occupancy):

  	
   

  	
  LifeWatch, Inc. 

  1351 A Abbott Court

  Buffalo Grove, IL 60089

  
	
   

  	
   

  	
   

  
	
  Tenant (following occupancy):

  	
   

  	
  LifeWatch, Inc.

  10255 W. Higgins Road, Suite 700

  Rosemont, IL 60018

  

 

(m)                               Guarantors):
None.

 

EXHIBITS

Exhibit A -
Original Premises

Exhibit A-1
Additional Space

Exhibit B -
Tenant Improvements

Exhibit B-1a
- Schedule (Original Premises)

Exhibit B-lb
- Schedule (Additional Space)

Exhibit C -
Letter of Understanding for Original Premises

Exhibit C-l -
Letter of Understanding for Additional Space

Exhibit D -
Irrevocable Letter of Credit

Exhibit E - Rules and
Regulations

Exhibit F -
Roof Area

Exhibit G -
Dish Data Sheet

Exhibit H-
Refusal Space

Exhibit I -
Temporary Space

 

Section 1.02. Lease of
Premises. Landlord hereby leases to Tenant and Tenant hereby leases from
Landlord the Leased Premises, under the terms and conditions herein, together
with a non-exclusive right, in common with others, to use the following
(collectively, the “Common Areas”): the areas of the Building and the underlying
land and improvements thereto that are designed for use in common by all
tenants of the Building and their respective employees, agents, customers,
invitees and others.

 

ARTICLE 2 -
TERM AND POSSESSION

 

Section 2.01. Term. The
Lease Terms for the Original Premises (the “Original Premises Commencement Date”)
and for the Additional Space (the “Additional Space Commencement Date”) shall
commence as of the date that Substantial Completion (as defined in Exhibit B hereto) of the Original
Premises Tenant Improvements and the Additional Space Tenant Improvements (as
defined in Section 2.02 below), respectively, occur.

 

Section 2.02. Construction
of Original Premises Tenant Improvements and Additional Space Tenant
Improvements. Landlord shall construct and install all leasehold
improvements to the Leased Premises (collectively, the Original Premises Tenant
Improvements and Additional Space Tenant Improvements shall be known as the “Tenant
Improvements”) in accordance with Exhibit B
attached hereto and made a part hereof. Landlord shall use commercially
reasonable efforts to deliver the Original Premises to Tenant with the Original
Premises Tenant Improvements Substantially Complete (as defined in Exhibit B)
on or before January 1, 2007. In the event the Original Premises is not
delivered to Tenant

 

3

 

on or before January 1,
2007, with the Original Premises Tenant Improvements Substantially Complete,
subject to punch list items and any delays not caused by the acts of Landlord,
then Landlord shall provide Tenant one (1) day’s minimum annual rental
abatement for each day of delay after January 1, 2007. Such abatement
shall be Tenant’s sole remedy for Landlord’s failure to deliver the Original
Premises as set forth above, and Tenant shall not be entitled to damages
(consequential or otherwise) as a result thereof. Notwithstanding the above, in
the event Landlord fails to deliver the Original Premises to Tenant with
Original Premises Tenant Improvements Substantially Complete subject to
punchlist items and any delays not caused by the acts of Landlord, on or before
April 1, 2007, then Tenant shall have the option to terminate this Lease
by providing Landlord with written notice of termination on or before April 1,
2007. Such termination shall be Tenant’s sole remedy for Landlord’s failure to
deliver the Original Premises as set forth above, and Tenant shall not be
entitled to damages (consequential or otherwise) as a result thereof. Further,
Landlord shall use commercially reasonable efforts deliver the Additional Space
to Tenant with the Additional Space Tenant Improvements Substantially Complete
on or before April 18, 2007. In the event the Additional Space is not
delivered to Tenant on or before April 18, 2007, with the Additional Space
Tenant Improvements Substantially Complete, subject to punch list items and any
delays not caused by the acts of Landlord, then Landlord shall provide Tenant
one (l) day’s minimum annual rental abatement for each day of delay after May 18,
2007. Such abatement shall be Tenant’s sole remedy for Landlord’s failure to
deliver the Additional Space as set forth above, and Tenant shall not be
entitled to damages (consequential or otherwise) as a result thereof.
Notwithstanding the above, in the event Landlord fails to deliver the
Additional Space to Tenant with Additional Space Tenant Improvements
Substantially Complete subject to punchlist items and any delays not caused by
the acts of Landlord, on or before August 18, 2007, then Tenant shall have
the option to terminate this Lease by providing Landlord with written notice of
termination on or before August 18, 2007. Such termination shall be Tenant’s
sole remedy for Landlord’s failure to deliver the Additional Space as set forth
above, and Tenant shall not be entitled to damages (consequential or otherwise)
as a result thereof.

 

Section 2.03. Surrender of
the Premises. Upon the expiration or earlier termination of this Lease,
Tenant shall, at its sole cost and expense, immediately (a) surrender the Leased
Premises to Landlord in broom-clean condition and in good order, condition and
repair, (b) remove from the Leased Premises (i) Tenant’s Property (as
defined in Section 8.01 below), and (ii) any alterations
required to be removed pursuant to Section 7.03 below, and (c) repair
any damage caused by any such removal. All of Tenant’s Property that is not
removed within ten (10) days following Landlord’s written demand therefor
shall be conclusively deemed to have been abandoned and Landlord shall be entitled
to dispose of such property at Tenant’s cost without incurring any liability to
Tenant. This Section 2.03 shall survive the expiration or any
earlier termination of this Lease.

 

Section 2.04. Holding Over.
If Tenant retains possession of the Leased Premises after the expiration or
earlier termination of this Lease, Tenant shall be a tenant at sufferance at (i) one
hundred twenty-five percent (125%) of the Monthly Rental Installments and
Annual Rental Adjustments (as hereinafter defined) for the Leased Premises in
effect upon the date of such expiration or earlier termination for the for the
first three (3) months Tenant holds over, and (ii) one hundred fifty
percent (150%) of the Monthly Rental Installments and Annual Rental Adjustments
for the Leased Premises thereafter, and otherwise upon the terms, covenants and
conditions herein specified, so far as applicable. Acceptance by Landlord of
rent after such expiration or earlier termination shall not result in a renewal
of this Lease, nor shall such acceptance create a month-to-month tenancy. In
the event a month-to-month tenancy is created by operation of law, either party
shall have the right to terminate such month-to-month tenancy upon thirty (30)
days’ prior written notice to the other, whether or not said notice is given on
the rent paying date. Tenant shall not be responsible for any damages Landlord
may suffer as a result of Tenant’s holdover unless such holdover continues for
ninety (90) days after expiration of the Lease Term. This Section 2.04
shall in no way constitute a consent by Landlord to any holding over by Tenant
upon the expiration or earlier termination of this Lease, nor limit Landlord’s
remedies in such event.

 

Section 2.05. Temporary
Space. Landlord and Tenant hereby agree that Landlord shall provide Tenant
with approximately 5,896 rentable square feet of temporary space in the
Building (“Temporary Space”) as shown crosshatched in Exhibit I attached hereto upon the
execution of this Lease by the parties until the Substantial Completion of the
Additional Space Tenant Improvements. The Temporary Space shall be leased to
Tenant rent-free; provided, however, that Tenant shall pay for all utilities
and janitorial services for the Temporary Space. Tenant accepts the Temporary
Space “AS-IS” without representation
or warranty by Landlord of any kind and with the understanding that Landlord
shall have no responsibility with respect thereto. Landlord may terminate
Tenant’s rights with respect to the Temporary Space only upon thirty (30) days’
written notice to the other party and such termination shall not terminate or
release any other rights or obligations stated in the Lease. In the event of
such termination, Landlord shall use commercially reasonable efforts to
relocate Tenant to alternate temporary space with in the Building or Park.
Tenant shall vacate the Temporary Space in full compliance with the provisions
of Section 2.05 hereof upon such termination. The Temporary space
shall be subject to all other terms and conditions of this Lease not specifically
addressed herein.

 

4

 

ARTICLE 3 -
RENT

 

Section 3.01. Base Rent.
Tenant shall pay to Landlord the Minimum Annual Rents in the Monthly Rental
Installments in advance, without demand, deduction or offset, on the Original
Premises Commencement Date and the Additional Space Commencement Date,
respectively, and on or before the first day of each and every calendar month
thereafter during the Lease Term. The Monthly Rental Installments for partial
calendar months shall be prorated.

 

Section 3.02. Annual Rental
Adjustment Definitions.

 

(a)                                  “Annual
Rental Adjustment” shall mean the amount of Tenant’s Proportionate Share of
Operating Expenses for a particular calendar year.

 

(b)                                 “Operating
Expenses” shall mean the amount of all of Landlord’s costs and expenses
paid or incurred in operating, repairing, replacing and maintaining the
Building and the Common Areas in good condition and repair for a particular
calendar year (including all additional costs and expenses that Landlord
reasonably determines that it would have paid or incurred during such year if
the Building had been 95% occupied), including by way of illustration and not
limitation, the following: all Real Estate Taxes (as hereinafter defined), insurance
premiums and deductibles; water, sewer, electrical and other utility charges
other than the separately billed electrical and other charges paid by Tenant as
provided in this Lease (or other tenants in the Building); service and other
charges incurred in the repair, replacement, operation and maintenance of the
elevators and the heating, ventilation and air-conditioning system; costs
associated with providing fitness facilities, if any; cleaning and other
janitorial services; tools and supplies; repair costs; landscape maintenance
costs; access patrols; license, permit and inspection fees; commercially
reasonable management fees; commercially reasonable administrative fees;
supplies, costs, wages and related employee benefits payable for the
management, maintenance and operation of the Building; maintenance, repair and
replacement of the driveways, parking and sidewalk areas (including snow and
ice removal), landscaped areas, and lighting; and maintenance and repair costs,
dues, fees and assessments incurred under any covenants or charged by any
owners association. The cost of any Operating Expenses that are capital in
nature shall be amortized over the useful life of the improvement (as
reasonably determined by Landlord), and only the amortized portion shall be
included in Operating Expenses.

 

For purposes of this provision and the remainder of this Lease, the
term “Operating Expenses” shall not include:

 

(i)                                     Any
ground lease rental;

 

(ii)                                  Cost
of any capital improvements, except for capital improvements that may be
required to be made by laws, statutes, codes or regulations that were not in
effect or applicable to the Building at the time it was constructed;

 

(iii)                               Rental
for items (except when needed in connection with normal repairs and maintenance
of Building Systems) which if purchased, rather than rented, would constitute a
capital improvement;

 

(iv)                              Costs
incurred by Landlord for the repair of damage to the Building to the extent
that Landlord is reimbursed by insurance proceeds;

 

(v)                                 Costs,
including permit, license and inspection costs, incurred with respect to the
installation of tenant or other occupants’ improvements in the Building or
incurred in renovating or otherwise improving, decorating, painting or
redecorating vacant space;

 

(vi)                              Depreciation
on the Building or interest payments or financing costs associated with the
Building;

 

(vii)                           Marketing
costs, including without limitation, leasing commissions, attorneys’ fees in
connection with the negotiation and preparation of letters, deal memos, letters
of intent, leases, subleases and /or assignments, space planning costs and
other costs and expenses incurred in connection with lease, sublease and /or
assignment negotiations and transactions with Tenant or present or prospective
tenants or other occupants of the Building;

 

5

 

(viii)                        Expenses
in connection with services or other benefits which are not offered to Tenant
or for which Tenant is charged for directly but which are provided to other
tenants or occupants of the Building;

 

(ix)                                Costs
incurred by Landlord due to the violation by Landlord or any tenant of the
terms and conditions of any lease of space in the Building;

 

(x)                                   Costs
representing amounts paid to an affiliate of Landlord for services or materials
which are in excess of the amounts which would have been paid in the absence of
such relationship;

 

(xi)                                Advertising
and promotional expenditures, and the cost of signs in or on the Building
identifying the owner of the Building or other tenants;

 

(xii)                             Costs
of correcting building code violations which violations were in existence on
the Original Space Commencement Date;

 

(xiii)                          Tax
penalties incurred as a result of Landlord’s failure to make payments and/or to
file any tax or informational returns when due;

 

(xiv)                         Costs
for which Landlord has been compensated by a management fee, and any management
fees in excess of those management fees which are normally and customarily
charged by landlords of comparable buildings;

 

(xv)                            Costs
arising from the negligence or fault of other tenants or Landlord, or its
agents, or any vendors, contractors, or providers of materials or services
selected, hired or engaged by Landlord or its agents;

 

(xvi)                         Costs
arising from Landlord’s charitable or political contributions;

 

(xvii)                      Costs
arising from defects in improvements installed by Landlord to the extent
Landlord is reimbursed for such costs by warranties;

 

(xviii)                   Cost
for the acquisition of (as contrasted with the maintenance of) sculpture,
paintings or other objects of art;

 

(xix)                           Costs
(including in connection therewith all attorneys’ fees and costs of settlement
judgments and payment in lieu thereof) arising from claims, disputes, or
potential disputes in connection with potential or actual claims, litigation or
arbitrations pertaining to Landlord and/or the Building;

 

(xx)                              Costs
associated with the operation of the business of the partnership or entity
which constitutes Landlord as the same are distinguished form the costs of
operation of the Building, including partnership accounting and legal matters,
costs of defending any lawsuits, costs of selling syndicating, financing,
mortgaging or hypothecating any of Landlord’s interest in the Building;

 

(xxi)                           Any
expenses incurred by Landlord for the use of any portions of the Building to
accommodate events including, but not limited to shows, promotions, kiosks,
displays, filming, photography, private events or parties, ceremonies, and
advertising beyond the normal expenses otherwise attributable to providing Building
services, such as lighting and HVAC to such public portions of the Building in
normal Building operations;

 

(xxii)                        Any
entertainment, dining or travel expenses for any purpose;

 

(xxiii)                     Any
flowers, gifts, balloons, etc. provided to any entity whatsoever, to including,
but not limited to Tenant, other tenants, employees, vendors, contractors
prospective tenants and agents;

 

(xxiv)                    Any
“above-standard” cleaning, repairs, maintenance or other services, including
without limitation, construction clean-up or special cleanings associated with
parties or events and specific tenant requirements, in excess of the cleaning,
repairs, maintenance and other services provided to Tenant, including related
trash collection, removal, hauling and dumping;

 

(xxv)                       The
cost of any magazine, newspaper, trade or other subscriptions;

 

6

 

(xxvi)                    The
cost of any “tenant relations” parties, events or promotions no consented to by
an authorized representative of Tenant;

 

(xxvii)                 “In-house”
legal and/or accounting fees; and

 

(xxviii)              Reserves
for bad debts.

 

(c)                                  “Tenant’s
Proportionate Share of Operating Expenses” shall mean an amount equal to
the product of Tenant’s Proportionate Share times the Operating Expenses.

 

(d)                                 “Real
Estate Taxes” shall mean any form of real estate tax or assessment or
service payments in lieu thereof, and any license fee, commercial rental tax,
improvement bond or other similar charge or tax (other than inheritance,
franchise, gift, payroll, capital stock personal income or estate taxes)
imposed upon the Building or Common Areas, or against Landlord’s business of
leasing the Building, by any authority having the power to so charge or tax,
together with costs and expenses of contesting the validity or amount of the
Real Estate Taxes. Real Estate Taxes shall not include any Illinois Replacement
Tax or any transfer or mortgage tax imposed in connection with a transfer of
the Building.

 

Section 3.03. Payment of
Additional Rent.

 

(a)                                  Any
amount required to be paid by Tenant hereunder (in addition to Minimum Annual
Rent) and any charges or expenses incurred by Landlord on behalf of Tenant
under the terms of this Lease shall be considered “Additional Rent” payable in
the same manner and upon the same terms and conditions as the Minimum Annual
Rent reserved hereunder, except as set forth herein to the contrary. Any
failure on the part of Tenant to pay such Additional Rent when and as the same
shall become due shall entitle Landlord to the remedies available to it for non-payment
of Minimum Annual Rent.

 

(b)                                 In
addition to the Minimum Annual Rent specified in this Lease, commencing as of
the Original Premises Commencement Date and the Additional Space Commencement
Date, as applicable, Tenant shall pay to Landlord as Additional Rent for the
Leased Premises, in each calendar year or partial calendar year during the
Lease Term, an amount equal to the Annual Rental Adjustment for such calendar
year. Landlord shall estimate the Annual Rental Adjustment annually, and
written notice thereof shall be given to Tenant prior to the beginning of each
calendar year. Tenant shall pay to Landlord each month, at the same time the
Monthly Rental Installment is due, an amount equal to one-twelfth (1/12) of the
estimated Annual Rental Adjustment. Tenant shall be responsible for delivering
the Additional Rent to the payment address set forth in Section 1.01(1) above
in accordance with this Section 3.03. If Operating Expenses
increase during a calendar year, Landlord may increase the estimated Annual
Rental Adjustment during such year by giving Tenant written notice to that
effect, and thereafter Tenant shall pay to Landlord, in each of the remaining
months of such year, an amount equal to the amount of such increase in the
estimated Annual Rental Adjustment divided by the number of months remaining in
such year. Within a reasonable time after the end of each calendar year,
Landlord shall prepare and deliver to Tenant a statement showing the actual
Annual Rental Adjustment. Within thirty (30) days after receipt of the
aforementioned statement, Tenant shall pay to Landlord, or Landlord shall
credit against the next rent payment or payments due from Tenant, as the case
may be, the difference between the actual Annual Rental Adjustment for the
preceding calendar year and the estimated amount paid by Tenant during such
year. This Section 3.03 shall survive the expiration or any earlier
termination of this Lease. Notwithstanding anything contained herein to the
contrary, Landlord and Tenant hereby agree that Tenant shall not pay the Annual
Rental Adjustments for (i) the Original Premises until the Original
Premises Commencement Date, and (ii) the Additional Space until the
Additional Space Commencement Date.

 

Section 3.04. Late Charges.
Tenant acknowledges that Landlord shall incur certain additional unanticipated
administrative and legal costs and expenses if Tenant fails to pay timely any
payment required hereunder. Therefore, in addition to the other remedies
available to Landlord hereunder, if any payment required to be paid by Tenant
to Landlord hereunder shall become overdue, such unpaid amount shall bear
interest from the due date thereof to the date of payment at the prime rate of
interest, as reported in the Wall Street Journal (the “Prime Rate”) plus four
percent (4%) per annum.

 

Section 3.05. Maximum
Increase in Operating Expenses. Notwithstanding anything in this Lease to
the contrary, Tenant will be responsible for Tenant’s Proportionate Share of
Real Estate Taxes, insurance premiums, utilities, janitorial services, snow
removal, landscaping, management fees, and charges assessed against the
Building pursuant to any covenants or owner’s association (“Uncontrollable
Expenses”), without regard to the level of increase in any or all of the above
in any year or other period of time. Tenant’s obligation to pay all other
Building Operating Expenses that are not Uncontrollable Expenses (herein “Controllable
Expenses”) shall be limited to a four percent (4%) per annum increase over the
amount the Controllable Expenses per rentable square foot for the immediately
preceding calendar year would have been had the Controllable Expenses per
rentable square foot increased at the

 

7

 

rate of four
percent (4%) in all previous calendar years beginning with the actual
Controllable Expenses per rentable square foot for the year ending December 31,
2007. In the event Tenant leases, but ceases to occupy the Leased Premises,
Tenant shall receive a credit against Operating Expenses for the reduction in
janitorial services to the extent Landlord is able to obtain a credit for those
services from its janitorial service provider.

 

Section 3.06. Inspection and
Audit Rights.

 

(a) Tenant shall have the right to inspect, at reasonable times
and in a reasonable manner, during the ninety (90) day period following the
delivery of Landlord’s statement of the actual amount of the Annual Rental
Adjustment (the “Inspection Period”), such of Landlord’s books of account and
records as pertain to and contain information concerning the Annual Rental
Adjustment for the prior calendar year in order to verify the amounts thereof.
Such inspection shall take place at Landlord’s office upon at least fifteen
(15) days prior written notice from Tenant to Landlord, but such notice period
shall not affect the duration of the Inspection Period. Only Tenant or a
certified public accountant that is not being compensated for its services on a
contingency fee basis shall conduct such inspection. Tenant shall also agree to
follow Landlord’s reasonable procedures for auditing such books and records.
Landlord and Tenant shall act reasonably in assessing the other party’s
calculation of the Annual Rental Adjustment. Tenant shall provide Landlord with
a copy of its findings within sixty (60) days after completion of the audit. In
the event of any errors on the part of Landlord that Landlord agrees were
errors costing Tenant in excess of five percent (5%) of Tenant’s actual
operating expense liability for any calendar year, Landlord will also reimburse
Tenant for the costs of an audit reasonably incurred by Tenant in an amount not
to exceed $2,500. Tenant’s failure to exercise its rights hereunder within the
Inspection Period shall be deemed a waiver of its right to inspect or contest
the method, accuracy or amount of such Annual Rental Adjustment.

 

(b) If Landlord and Tenant agree that Landlord’s calculation of
the Annual Rental Adjustment for the inspected calendar year was incorrect, the
parties shall enter into a written agreement confirming such undisputed error
and then Landlord shall make a correcting payment in full to Tenant within
thirty (30) days after the determination of the amount of such error or credit
such amount against future Additional Rent if Tenant overpaid such amount, and
Tenant shall pay Landlord within thirty (30) days after the determination of
such error if Tenant underpaid such amount.

 

(c) All of the information obtained through Tenant’s inspection
with respect to financial matters (including, without limitation, costs,
expenses and income) and any other matters pertaining to Landlord, the Leased
Premises, the Building and/or the Park as well as any compromise, settlement or
adjustment reached between Landlord and Tenant relative to the results of the
inspection shall be held in strict confidence by Tenant and its officers,
agents, and employees; and Tenant shall cause its independent professionals to
be similarly bound. The obligations within the preceding sentence shall survive
the expiration or earlier termination of the Lease.

 

ARTICLE 4 -
SECURITY DEPOSIT

 

Tenant shall, upon execution of this Lease, provide to Landlord an
irrevocable letter of credit, in the form attached hereto as Exhibit D, issued by a bank
reasonably acceptable to Landlord. The letter of credit shall be in the amount
of Six Hundred and Fifty Thousand and 00/100 Dollars ($650,000.00) and shall
constitute the “Security Deposit” for the full and faithful performance by
Tenant of all of the terms, conditions and covenants contained in the Lease on
the part of the Tenant to be performed, including but not limited to the
payment of rent. Such letter of credit shall automatically renew on an annual
basis and shall not expire less than sixty (60) days after the expiration or
earlier termination of this Lease. In the event Landlord receives notice from
the bank issuing the letter of credit that the letter of credit will not be
renewed and Landlord has not received a replacement letter of credit at least
forty-five (45) days prior to the expiration date thereof, Landlord may
immediately draw upon such letter of credit and hold the cash proceeds thereof
in lieu of such letter of credit. All sums held by Landlord pursuant to this Article 4
shall be without interest. Landlord may, at its option, draw upon the letter of
credit in the event of a default by Tenant of any term, condition or covenant
in the Lease; and if Landlord does so, Tenant shall, upon request of Landlord,
deposit with Landlord the amount so applied so that Landlord will have on hand
at all times during the Lease Term the full amount. At the end of the Lease
Term, provided there is no uncured default, Landlord shall return the letter of
credit or, in the event such is not renewed, any security held by Landlord, to
Tenant, within sixty (60) days after the expiration date of the Lease Term.
Notwithstanding the above, provided Tenant has not been in default hereunder
beyond any applicable cure period, Tenant shall have the right (i) on March 1,
2011 upon thirty (30) days prior written notice to Landlord to reduce the
letter of credit to Three Hundred Twenty-Five Thousand and 00/100 Dollars
($325,000.00), and (ii) on March 1, 2015 upon thirty (30) days prior
written notice to Landlord to reduce the letter of credit to zero and Landlord
shall return the original letter of credit to Tenant.

 

8

 

ARTICLE 5 -
OCCUPANCY AND USE

 

Section 5.01. Use.
Tenant shall use the Leased Premises for the Permitted Use and for no other
purpose without the prior written consent of Landlord. To the extent permitted
by applicable laws, rules and ordinances, Tenant shall also have the right
to use a portion of the Leased Premises for (i) light assembly and
manufacturing, and (ii) a private daycare facility for use by Tenant’s
employees only.

 

Section 5.02. Covenants of
Tenant Regarding Use.

 

(a)                                  Tenant
shall (i) use and maintain the Leased Premises and conduct its business
thereon in a safe, careful, reputable and lawful manner, (ii) comply with
all covenants that encumber the Building and all laws, rules, regulations,
orders, ordinances, directions and requirements of any governmental authority
or agency, now in force or which may hereafter be in force, including, without
limitation, those which shall impose upon Landlord or Tenant any duty with
respect to or triggered by a change in the use or occupation of, or any
improvement or alteration to, the Leased Premises, and (iii) comply with
and obey all reasonable directions, rules and regulations of Landlord,
including the Building Rules and Regulations attached hereto as Exhibit E and made a part hereof,
as may be modified from time to time by Landlord on reasonable notice to
Tenant. In the event of any conflict between the terms of this Lease and the
terms of Exhibit E, the terms of this Lease shall control.

 

(b)                                 Notwithstanding
anything contained herein to the contrary, Tenant shall not do or permit
anything to be done in or about the Leased Premises that will in any way cause
a nuisance, obstruct or interfere with the rights of other tenants or occupants
of the Building or injure or annoy them. Landlord shall not be responsible to
Tenant for the non-performance by any other tenant or occupant of the Building
of any of Landlord’s directions, rules and regulations, but agrees that
any enforcement thereof shall be done uniformly. Tenant shall not use the
Leased Premises, nor allow the Leased Premises to be used, for any purpose or
in any manner that would (i) invalidate any policy of insurance now or
hereafter carried by Landlord on the Building, or (ii) increase the rate
of premiums payable on any such insurance policy unless Tenant reimburses
Landlord for any increase in premium charged.

 

Section 5.03. Landlord’s
Rights Regarding Use. Without limiting any of Landlord’s rights specified
elsewhere in this Lease (a) Landlord shall have the right at any time,
without notice to Tenant, to control, change or otherwise alter the Common
Areas in such manner as it deems necessary or proper, provided that any such
alteration does not materially and adversely interfere with Tenant’s access to
the Leased Premises; and (b) Landlord, its agents, employees and
contractors and any mortgagee of the Building shall have the right to enter any
part of the Leased Premises at reasonable times upon reasonable notice (except
in the event of an emergency where no notice shall be required) for the
purposes of examining or inspecting the same (including, without limitation,
testing to confirm Tenant’s compliance with this Lease), showing (during the
last 18 months of the Lease Term) the same to prospective purchasers,
mortgagees or tenants, and making such repairs, alterations or improvements to
the Leased Premises or the Building as Landlord may deem necessary or
desirable. Landlord shall incur no liability to Tenant for such entry, nor
shall such entry constitute an eviction of Tenant or a termination of this
Lease, or entitle Tenant to any abatement of rent therefor. Notwithstanding the
Foregoing, Landlord shall make commercially reasonable efforts to not
materially and adversely interfere with Tenant’s use of the Leased Premises
when exercising its rights under this Section 5.03.

 

ARTICLE 6 -
UTILITIES AND OTHER BUILDING SERVICES

 

Section 6.01. Services to be
Provided. Provided Tenant is not is not currently in default beyond the
expiration of any notice and cure period to which Tenant may be entitled.
Landlord shall furnish to the Leased Premises, except as noted below, the
following utilities and other services to the extent reasonably necessary for
the use of the Leased Premises for the Permitted Use, or as may be required by
law or directed by governmental authority:

 

(a)                                  Heating,
ventilation and air-conditioning between the hours of 8:00 a.m. and 6:00 p.m.
Monday through Friday and 9:00 a.m. to 1:00 p.m. on Saturday of each
week except on legal holidays;

 

(b)                                 Electrical
current not to exceed four (4) watts per square foot, or as needed
pursuant to separately metered service;

 

(c)                                  Water
in the Common Areas for lavatory and drinking purposes and in the Leased
Premises for pantries and kitchens as shown on the CDs (as defined in Exhibit B);

 

(d)                                 Automatic
elevator service;

 

9

 

(e)                                  Cleaning
and janitorial service in the Leased Premises and Common Areas on Monday
through Friday of each week except legal holidays; provided, however, Tenant
shall be responsible for carpet cleaning other than routine vacuuming;

 

(f)                                    Washing
of windows at intervals reasonably established by Landlord (minimum 2 times per
year);

 

(g)                                 Replacement
of all lamps, bulbs, starters and ballasts in Building standard lighting as
required from time to time as a result of normal usage;

 

(h)                                 Maintenance
of the Common Areas, including the removal of standard office rubbish, ice and
snow;

 

(i)                                     24-hour
manned security of the Building, as reasonably determined by Landlord;

 

(j)                                     Tenant
shall have the right to use the loading dock for the Building multiple times
per day at no additional cost throughout the Lease Term. Special deliveries
that will occupy the loading areas for more than thirty (30) minutes shall be
scheduled after-hours with property management.

 

Subject to the Building Rules and Regulations, Tenant shall have
access to the Leased Premises, Building and Common Areas twenty-four (24) hours
a day, seven (7) days a week except for periodic shutdowns for repairs or
maintenance of which Tenant shall receive advanced written notice.

 

The HVAC shall be capable of maintaining, during the cooling season,
inside space conditions of 75°F (+2 degrees) dry bulb and 50% (±5%) relative
humidity when outside conditions are 94°F dry bulb and 75°F (mean coincident
wet bulb) and during the heating season, maintain not less than 72°F (-2
degrees) with outdoor temperatures ranging down to -10°F. The foregoing is
based upon an occupancy density of not more than one (1) person per 150
square feet of floor area and a maximum electric wiring and power load of 5
watts per square foot of floor area (2 watts for lighting and 3 watts for
power).

 

Section 6.02. Additional
Services.

 

(a)                                  If
Tenant requests utilities or building services in addition to those identified
above, or if Tenant uses any of the above utilities or services in frequency,
scope, quality or quantity substantially greater than that which Landlord
determines is normally required by other tenants in the Building, then Landlord
shall use reasonable efforts to attempt to furnish Tenant with such additional
utilities or services. In the event Landlord is able to and does furnish such
additional utilities or services, the costs thereof (which shall be deemed to
mean the cost that Tenant would have incurred had Tenant contracted directly
with the utility company or service provider) shall be borne by Tenant, who
shall reimburse Landlord monthly for the same as Additional Rent. Landlord
shall also have the right to submeter or separately meter the Leased Premises
at Tenant’s sole cost, and Tenant shall pay such utilities based on the
submeter or separate meter.

 

(b)                                 If
any lights, density of staff, machines or equipment used by Tenant in the
Leased Premises materially affect the temperature otherwise maintained by the
Building’s air-conditioning system or generate substantially more heat in the
Leased Premises than that which would normally be generated by other tenants in
the Building or by tenants in comparable office buildings, then Landlord shall
have the right to install any machinery or equipment that Landlord considers
reasonably necessary in order to restore the temperature balance between the
Leased Premises and the rest of the Building, including, without limitation,
equipment that modifies the Building’s air-conditioning system. All costs
expended by Landlord to install any such machinery and equipment and any
additional costs of operation and maintenance in connection therewith shall be
borne by Tenant, who shall reimburse Landlord for the same as provided in this Section 6.02.
After hours HVAC will be provided to Tenant daily upon not less than four (4) hours
prior notice, which notice may be verbal. The current fee (subject to change)
for after-hours HVAC use is One Hundred Dollars ($100.00) per hour.

 

(c)                                  Landlord
currently provides the Building with a daily (Monday-Friday) shuttle service,
which includes routine stops at the train station for the Chicago Transit
Authority’s Blue Line Service and O’Hare International Airport. The shuttle
service currently runs approximately every thirty (30) minutes from 6:40 a.m.
to 9:40 a.m., 2:05 p.m. to 6:15 p.m., and 10:00 p.m. to
1:00 a.m. Tenant can schedule additional runs to or from O’Hare
International Airport during the off-hours with the concierge service. This
service is on a first come, first serve basis.

 

Section 6.03. Interruption
of Services. Tenant acknowledges and agrees that any one or more of the
utilities or other services identified in Sections 6.01 or 6.02
or otherwise hereunder may be interrupted by reason of accident, emergency or
other causes beyond Landlord’s control, or may be discontinued or

 

10

 

diminished
temporarily by Landlord or other persons until certain repairs, alterations or
improvements can be made. Landlord shall not be liable in damages or otherwise
for any failure or interruption of any utility or service and no such failure
or interruption shall entitle Tenant to terminate this Lease or withhold sums
due hereunder. Notwithstanding the foregoing, in the event that (i) an
interruption of utility service to the Leased Premises is due to Landlord’s
negligence or intentional wrongful acts and (ii) the restoration of such
utility service is entirely within Landlord’s control and (iii) such
interruption renders all or a portion of the Leased Premises untenantable
(meaning that Tenant is unable to use, and does not use, such space in the
normal course of its business for the Permitted Use) for more than ten (10) consecutive
business days, then Tenant shall notify Landlord in writing that Tenant intends
to abate rent. If service has not been restored within five (5) business
days of Landlord’s receipt of Tenant’s notice, then Minimum Annual Rent shall
abate proportionately with respect to the portion of the Leased Premises
rendered untenantable on a per diem basis for each day after such five (5) business-day
period during which such portion of the Leased Premises remains untenantable.
Such abatement shall be Tenant’s sole remedy for Landlord’s failure to restore
service as set forth above, and Tenant shall not be entitled to damages
(consequential or otherwise) as a result thereof.

 

ARTICLE 7 -
REPAIRS, MAINTENANCE AND ALTERATIONS

 

Section 7.01. Repair and
Maintenance of Building. Landlord shall make all necessary repairs and
replacements to the roof, exterior walls, exterior doors, windows, corridors
and other Common Areas, and Landlord shall keep the Building in a clean and
neat condition and use reasonable efforts to keep all equipment used in common
with other tenants in good condition and repair. The cost of such repairs,
replacements and maintenance shall be included in Operating Expenses to the
extent provided in Section 3.02; provided however, to the extent
any such repairs, replacements or maintenance are required because of the
negligence, misuse or default of Tenant, its employees, agents, contractors,
customers or invitees, Landlord shall make such repairs at Tenant’s sole
expense.

 

Section 7.02. Repair and
Maintenance of Leased Premises. Landlord shall keep and maintain the Leased
Premises in good condition and repair. The cost of such repairs and maintenance
to the Leased Premises shall be included in Operating Expenses; provided
however, to the extent any repairs or maintenance are required in the Leased
Premises because of the negligence, misuse or default of Tenant, its employees,
agents, contractors, customers or invitees or are made at the specific request
of Tenant, Landlord shall make such repairs or perform such maintenance at
Tenant’s sole expense. Notwithstanding the above, Tenant shall be solely
responsible for any repair or replacement with respect to Tenant’s Property (as
defined in Section 8.01 below) located in the Leased Premises.
Nothing in this Article 7 shall obligate Landlord or Tenant to
repair normal wear and tear to any paint, wall covering or carpet in the Leased
Premises.

 

Section 7.03. Alterations.
Tenant shall not permit alterations in or to the Leased Premises unless and
until Landlord has approved the plans therefor in writing with the exception of
alterations or improvements not exceeding Fifty Thousand Dollars ($50,000.00)
which are not visible from outside the Leased Premises and which do not affect
the structure, mechanical systems or electrical systems of the Building (“Minor
Alterations”). In situations where Landlord’s prior approval is not so
required. Tenant shall promptly notify Landlord with respect to such
alterations and furnish Landlord with architectural drawings regarding same. As
a condition of such approval, or, with respect to any alterations not requiring
Landlord’s approval, Landlord and Tenant shall expressly agree on which party
shall be responsible for removal of the alteration in writing; otherwise, all
such alterations shall at Landlord’s option become a part of the realty and the
property of Landlord, and shall not be removed by Tenant. Tenant shall ensure
that all alterations shall be made in accordance with all applicable laws,
regulations and building codes, in a good and workmanlike manner and of quality
equal to or better than the original construction of the Building. No person
shall be entitled to any lien derived through or under Tenant for any labor or
material furnished to the Leased Premises, and nothing in this Lease shall be
construed to constitute Landlord’s consent to the creation of any lien. If any
lien is filed against the Leased Premises for work claimed to have been done
for or material claimed to have been furnished to Tenant, Tenant shall cause
such lien to be discharged of record within thirty (30) days after filing.
Tenant shall indemnify Landlord from all costs, losses, expenses and attorneys’
fees in connection with any construction or alteration and any related lien.
Except for Minor Alterations, Tenant agrees that, as long as Duke Realty
Limited Partnership or a subsidiary or affiliate of Duke Realty Limited
Partnership is owner of the Building, at Landlord’s option, Duke Construction
Limited Partnership or a subsidiary or affiliate of Landlord, who shall receive
a fee as Landlord’s construction manager or general contractor, shall perform
all work on any alterations to the Leased Premises.

 

ARTICLE 8 -
INDEMNITY AND INSURANCE

 

Section 8,01. Release.
All of Tenant’s trade fixtures, merchandise, inventory and all other personal
property in or about the Leased Premises, the Building or the Common Areas,
which is deemed to include the trade fixtures, merchandise, inventory and
personal property of others located in or about

 

11

 

the Leased
Premises or Common Areas at the invitation, direction or acquiescence (express
or implied) of Tenant (all of which property shall be referred to herein,
collectively, as “Tenant’s Property”), shall be and remain at Tenant’s sole
risk. Landlord shall not be liable to Tenant or to any other person for, and
Tenant hereby releases Landlord from (a) any and all liability for theft
or damage to Tenant’s Property, and (b) any and all liability for any
injury to Tenant or its employees, agents, contractors, guests and invitees in
or about the Leased Premises, the Building or the Common Areas, except to the
extent of personal injury (but not property loss or damage) caused directly by
the negligence or willful misconduct of Landlord, its agents, employees or
contractors. Nothing contained in this Section 8.01 shall limit (or
be deemed to limit) the waivers contained in Section 8.06 below. In
the event of any conflict between the provisions of Section 8.06
below and this Section 8.01, the provisions of Section 8.06
shall prevail. This Section 8.01 shall survive the expiration or
earlier termination of this Lease.

 

Section 8.02. Indemnification
by Tenant. Tenant shall protect, defend, indemnify and hold Landlord, its
agents, employees and contractors harmless from and against any and all claims,
damages, demands, penalties, costs, liabilities, losses, and expenses
(including reasonable attorneys’ fees and expenses at the trial and appellate
levels) to the extent (a) arising out of or relating to any act, omission,
negligence, or willful misconduct of Tenant or Tenant’s agents, employees,
contractors, customers or invitees in or about the Leased Premises, the
Building or the Common Areas, (b) arising out of or relating to any of
Tenant’s Property, or (c) arising out of any other act or occurrence
within the Leased Premises, in all such cases except to the extent of personal
injury (but not property loss or damage) caused directly by the negligence or
willful misconduct of Landlord, its agents, employees or contractors. Nothing
contained in this Section 8.02 shall limit (or be deemed to limit)
the waivers contained in Section 8.06 below. In the event of any
conflict between the provisions of Section 8.06 below and this Section 8.02,
the provisions of Section 8.06 shall prevail. This Section 8.02
shall survive the expiration or earlier termination of this Lease.

 

Section 8.03. Indemnification
by Landlord. Landlord shall protect, defend, indemnify and hold Tenant, its
agents, employees and contractors harmless from and against any and all claims,
damages, demands, penalties, costs, liabilities, losses and expenses (including
reasonable attorneys’ fees and expenses at the trial and appellate levels) to
the extent arising out of or relating to any act, omission, negligence or
willful misconduct of Landlord or Landlord’s agents, employees or contractors.
Nothing contained in this Section 8.03 shall limit (or be deemed to
limit) the waivers contained in Section 8.06 below. In the event of
any conflict between the provisions of Section 8.06 below and this Section 8.03,
the provisions of Section 8.06 shall prevail. This Section 8.03
shall survive the expiration or earlier termination of this Lease.

 

Section 8.04. Tenant’s
Insurance.

 

(a)                                  During
the Lease Terms for the Original Premises and the Additional Space (and any
period of early entry or occupancy or holding over by Tenant, if applicable),
Tenant shall maintain the following types of insurance, in the amounts
specified below:

 

(i)                                     Liability
Insurance. Commercial General Liability Insurance (which insurance shall
not exclude blanket contractual liability, broad form property damage, personal
injury, or fire damage coverage) covering the Leased Premises and Tenant’s use
thereof against claims for bodily injury or death and property damage, which
insurance shall provide coverage on an occurrence basis with a per occurrence
limit of not less than $3,000,000, and with general aggregate limits of not
less than $10,000,000 for each policy year, which limits may be satisfied by
any combination of primary and excess or umbrella per occurrence policies.

 

(ii)                                  Property
Insurance. Special Form Insurance (which insurance shall not exclude
flood or earthquake) in the amount of the full replacement cost of Tenant’s
Property and betterments (including alterations or additions performed by
Tenant pursuant hereto, but excluding those improvements, if any, made pursuant
to Section 2.02 above), which insurance shall include an agreed
amount endorsement waiving coinsurance limitations.

 

(iii)                               Worker’s
Compensation Insurance. Worker’s Compensation insurance in amounts required
by applicable law.

 

(iv)                              Business
Interruption Insurance. Business Interruption Insurance with limits not
less than an amount equal to two (2) years rent hereunder.

 

(b)                                 All
insurance required by Tenant hereunder shall (i) be issued by one or more
insurance companies reasonably acceptable to Landlord, licensed to do business
in the State in which the Leased Premises is located and having an AM Best’s
rating of A IX or better, and (ii) provide that said insurance shall not
be materially changed, canceled or permitted to lapse on less than thirty (30)
days’ prior written notice to Landlord. In addition, Tenant’s insurance shall
protect Tenant and Landlord as their interests

 

12

 

may appear, naming
Landlord, Landlord’s managing agent, and any mortgagee requested by Landlord,
as additional insureds under its commercial general liability policies. On or
before the Original Premises Commencement Date and the Additional Space
Commencement Date (if applicable) (or the date of any earlier entry or
occupancy by Tenant), and thereafter, within thirty (30) days prior to the
expiration of each such policy. Tenant shall furnish Landlord with certificates
of insurance in the form of ACORD 25 or ACORD 25-S (or other evidence of
insurance reasonably acceptable to Landlord), evidencing all required
coverages, together with a copy of the endorsements to Tenant’s commercial
general liability policy evidencing primary and non-contributory coverage
offered to the appropriate additional insureds. Upon Tenant’s receipt of a
request from Landlord, Tenant shall provide Landlord with copies of all
insurance policies, including all endorsements, evidencing the coverages
required hereunder. If Tenant fails to carry such insurance and furnish
Landlord with such certificates of insurance or copies of insurance policies
(if applicable). Landlord may obtain such insurance on Tenant’s behalf and
Tenant shall reimburse Landlord upon demand for the cost thereof as Additional
Rent Landlord reserves the right from time to time to require Tenant to obtain
higher minimum amounts or different types of insurance if it becomes customary
for other landlords of similar buildings in the area to require similar sized
tenants in similar industries with similar uses to carry insurance of such
higher minimum amounts or of such different types.

 

Section 8.05. Landlord’s
Insurance. During the Lease Terms for the Original Premises and the
Additional Space, Landlord shall maintain the following types of insurance, in
the amounts specified below (the cost of which shall be included in Operating
Expenses):

 

(a)                                  Liability
Insurance. Commercial General Liability Insurance (which insurance shall
not exclude blanket, contractual liability, broad form property damage,
personal injury, or fire damage coverage) covering the Common Areas against
claims for bodily injury or death and property damage, which insurance shall
provide coverage on an occurrence basis with a per occurrence limit of not less
than $3,000,000, and with general aggregate limits of not less than $10,000,000
for each policy year, which limits may be satisfied by any combination of
primary and excess or umbrella per occurrence policies.

 

(b)                                 Property
Insurance. Special Form Insurance (which insurance shall not exclude
flood or earthquake) in the amount of the full replacement cost of the
Building, including, without limitation, any improvements, if any, made
pursuant to Section 2.02 above, but excluding Tenant’s Property and
any other items required to be insured by Tenant pursuant to Section 8.04
above.

 

Section 8.06. Waiver of
Subrogation. Notwithstanding anything contained in this Lease to the
contrary, Landlord and Tenant hereby waive any rights each may have against the
other on account of any loss of or damage to their respective property, the
Leased Premises, its contents, or other portions of the Building or Common
Areas arising from any risk which is required to be insured against by Sections
8.04(a)(ii) and 8.05(b) above. The special form
coverage insurance policies maintained by Landlord and Tenant as provided in this
Lease shall include an endorsement containing an express waiver of any rights
of subrogation by the insurance company against Landlord and Tenant, as
applicable.

 

ARTICLE 9 -
CASUALTY

 

In the event of total or partial destruction of the Building or the
Leased Premises by fire or other casualty, Landlord agrees promptly to restore
and repair same; provided, however, Landlord’s obligation hereunder with
respect to the Leased Premises shall be limited to the reconstruction of such
of the leasehold improvements as were originally required to be made by
Landlord pursuant to Section 2.02 above, if any. Rent shall
proportionately abate during the time that the Leased Premises or part thereof
are unusable because of any such damage. Notwithstanding the foregoing, if the
Leased Premises are (a) so destroyed that they cannot be repaired or
rebuilt within one hundred eighty (180) days from the casualty date; or (b) destroyed
by a casualty that is not covered by the insurance required hereunder or, if
covered, such insurance proceeds are not released by any mortgagee entitled
thereto or are, together with the amount of any deductible, insufficient to
rebuild the Building and the Leased Premises; then, in case of a clause (a) casualty,
either Landlord or Tenant may, or, in the case of a clause (b) casualty,
then Landlord may, upon thirty (30) days’ written notice to the other party,
terminate this Lease with respect to matters thereafter accruing.
Notwithstanding the foregoing, if such casualty occurs within the last eighteen
(18) months of the Lease Term, either party shall have the right to terminate
this Lease as of the date of such casualty, by written notice to the other
party within thirty (30) days after the date of such casualty. Tenant waives
any right under applicable laws inconsistent with the terms of this paragraph.

 

ARTICLE 10 -
EMINENT DOMAIN

 

If all or any substantial part of the Building or Common Areas shall be
acquired by the exercise of eminent domain, Landlord may terminate this Lease
by giving written notice to Tenant on or before the date possession thereof is
so taken. If all or any part of the Leased Premises shall be acquired by the
exercise of eminent domain so that the Leased Premises shall become impractical
for Tenant to use for the

 

13

 

Permitted Use,
Tenant may terminate this Lease by giving written notice to Landlord as of the
date possession thereof is so taken. All damages awarded shall belong to
Landlord; provided, however, that Tenant may claim dislocation damages if such
amount is not subtracted from Landlord’s award.

 

ARTICLE 11 -
ASSIGNMENT AND SUBLEASE

 

Section 11.01. Assignment
and Sublease.

 

(a)                                  Tenant
shall not assign this Lease or sublet the Leased Premises in whole or in part
without Landlord’s prior written consent. In the event of any permitted
assignment or subletting, Tenant shall remain primarily liable hereunder, and
any extension (except in the event Tenant subleases or assigns an entire floor
of the Building, in which case the Option to Extend shall remain in effect for
the entire Leased Premises), expansion, rights of first offer, rights of first
refusal or other options granted to Tenant under this Lease shall be rendered
void and of no further force or effect. The acceptance of rent from any other
person shall not be deemed to be a waiver of any of the provisions of this
Lease or to be a consent to the assignment of this Lease or the subletting of
the Leased Premises. Any assignment or sublease consented to by Landlord shall
not relieve Tenant (or its assignee) from obtaining Landlord’s consent to any
subsequent assignment or sublease.

 

(b)                                 By
way of example and not limitation, Landlord shall be deemed to have reasonably
withheld consent to a proposed assignment or sublease if in Landlord’s opinion (i) the
Leased Premises are or may be in any way adversely affected; (ii) the
business reputation of the proposed assignee or subtenant is unacceptable; or (iii) the
prospective assignee or subtenant is a current tenant at the Park. Tenant shall
provide Landlord with written notice of its intent to sublease or assign a
portion of the Leased Premises. Landlord may, at its option, within thirty (30)
days after receiving Tenant’s notice, terminate this Lease with respect to the
space Tenant intends to sublease or assign by giving Tenant thirty (30) days
prior written notice of such termination, whereupon each party shall be
released from all further obligations and liability hereunder with respect to
the portion of the Leased Premises for which this Lease has been terminated,
the rent and Tenant’s proportionate share shall be adjusted as of the date of
termination, except those which expressly survive the termination of this
Lease. If Landlord fails to provide notice within such thirty (30) day period,
Landlord shall be deemed to have waived its right to recapture.

 

(c)                                  If
Tenant shall make any assignment or sublease, with Landlord’s consent, for a
rental in excess of the rent payable under this Lease, Tenant shall pay to
Landlord fifty percent (50%) of any such excess rental upon receipt, after
first paying from such excess the reasonable and customary costs and expenses
incurred by Tenant in connection with such subleasing or assignment. Tenant
agrees to pay Landlord $500.00 upon demand by Landlord for reasonable
accounting and attorneys’ fees incurred in conjunction with the processing and
documentation of any requested assignment, subletting or any other
hypothecation of this Lease or Tenant’s interest in and to the Leased Premises
as consideration for Landlord’s consent. In the event Landlord has waived or is
deemed to have waived its recapture rights, Tenant may market the Leased
Premises for assignment of subletting. Tenant shall send notice to Landlord of
any proposed assignment or sublease, and Landlord shall have thirty (30) days
to consent to any such assignment or sublease, which consent shall not be
unreasonably withheld, delayed or conditioned.

 

Section 11.02. Permitted
Transfer. Notwithstanding anything to the contrary contained in Section 11.01
above, Tenant shall have the right, without Landlord’s consent, but upon ten (10) days
prior notice to Landlord, to (a) sublet all or part of the Leased Premises
to any related corporation or other entity which controls Tenant, is controlled
by Tenant or is under common control with Tenant; (b) assign all or any
part of this Lease to any related corporation or other entity which controls
Tenant, is controlled by Tenant, or is under common control with Tenant, or to
a successor entity into which or with which Tenant is merged or consolidated or
which acquires substantially all of Tenant’s assets or property; or (c) effectuate
any public offering of Tenant’s stock on the Swiss Exchange, New York Stock
Exchange or in the NASDAQ over the counter market, provided that in the event
of a transfer pursuant to clause (b), the tangible net worth after any such
transaction is not less than the tangible net worth of Tenant as of the date
hereof and provided further that such successor entity assumes all of the
obligations and liabilities of Tenant (any such entity hereinafter referred to
as a “Permitted Transferee”). For the purpose of this Article 11 (i) “control”
shall mean ownership of not less than fifty percent (50%) of all voting stock
or legal and equitable interest in such corporation or entity, and (ii) “tangible
net worth” shall mean the excess of the value of tangible assets (i.e. assets
excluding those which are intangible such as goodwill, patents and trademarks)
over liabilities. Any such transfer shall not relieve Tenant of its obligations
under this Lease. Nothing in this paragraph is intended to nor shall permit
Tenant to transfer its interest under this Lease as part of a fraud or
subterfuge to intentionally avoid its obligations under this Lease (for
example, transferring its interest to a shell corporation that subsequently
files a bankruptcy), and any such transfer shall constitute a Default
hereunder. Any change in control of Tenant resulting from a merger,
consolidation, or a transfer of partnership or membership interests, a stock
transfer, or any sale of

 

14

 

substantially all
of the assets of Tenant that do not meet the requirements of this Section 11.02
shall be deemed an assignment or transfer that requires Landlord’s prior
written consent pursuant to Section 11.01 above.

 

ARTICLE 12
-TRANSFERS BY LANDLORD

 

Section 12.01. Sale of the
Building. Landlord shall have the right to sell the Building at any time
during the Lease Term, subject only to the rights of Tenant hereunder; and such
sale shall operate to release Landlord from liability hereunder after the date
of such conveyance.

 

Section 12.02. Estoppel
Certificate. Within ten (10) days following receipt of a written
request from Landlord, Tenant shall execute and deliver to Landlord, without
cost to Landlord, an estoppel certificate in such form as Landlord may
reasonably request certifying (a) that this Lease is in full force and
effect and unmodified or stating the nature of any modification, (b) the
date to which rent has been paid, (c) that there are not, to Tenant’s
knowledge, any uncured defaults or specifying such defaults if any are claimed,
and (d) any other matters or state of facts reasonably required respecting
the Lease. Such estoppel may be relied upon by Landlord and by any purchaser or
mortgagee of the Building.

 

Section 12.03. Subordination.
Landlord shall have the right to subordinate this Lease to any mortgage, deed
to secure debt, deed of trust or other instrument in the nature thereof, and
any amendments or modifications thereto (collectively, a “Mortgage”) presently
existing or hereafter encumbering the Building by so declaring in such
Mortgage. Within ten (10) days following receipt of a written request from
Landlord, Tenant shall execute and deliver to Landlord, without cost, any
instrument that Landlord deems reasonably necessary or desirable to confirm the
subordination of this Lease provided same is reasonably acceptable to Tenant.
Notwithstanding the foregoing, if the holder of the Mortgage shall take title
to the Leased Premises through foreclosure or deed in lieu of foreclosure,
Tenant shall be allowed to continue in possession of the Leased Premises as
provided for in this Lease so long as Tenant is not in Default.

 

Section 12.04. Non-Disturbance.
Simultaneously with Landlord’s request to Tenant to execute a subordination
agreement pursuant to this Section 12.03, Landlord shall use commercially
reasonable efforts to secure a non-disturbance agreement from its mortgagee, in
a form reasonable acceptable to Tenant and Tenant’s attorneys.

 

ARTICLE 13 -
DEFAULT AND REMEDY

 

Section 13.01. Default.
The occurrence of any of the following shall be a “Default”:

 

(a)                                  Tenant
fails to pay Monthly Rental Installments or Additional Rents within five (5) days
after the same is due. Notwithstanding the foregoing sentence, before
exercising any of the default remedies of Landlord set forth in this Article 13,
Landlord shall provide Tenant with a written courtesy notice of such default
and Tenant shall have an additional five (5) days to cure such default;
provided, however, that Landlord shall not be required to give such courtesy
notice more than one (1) time with respect to any particular default, nor
more than two (2) times in any consecutive twelve (12) month period with
respect to any payment defaults in the aggregate.

 

(b)                                 Tenant
fails to perform or observe any other term, condition, covenant or obligation
required under this Lease for a period of thirty (30) days after written notice
thereof from Landlord; provided, however, that if the nature of Tenant’s
default is such that more than thirty (30) days are reasonably required to
cure, then such default shall be deemed to have been cured if Tenant commences
such performance within said thirty (30) day period and thereafter diligently
completes the required action within a reasonable time.

 

(c)                                  Intentionally
Omitted.

 

(d)                                 Tenant
shall assign or sublet all or a portion of the Leased Premises in contravention
of the provisions of Article 11 of this Lease.

 

(e)                                  All
or substantially all of Tenant’s assets in the Leased Premises or Tenant’s
interest in this Lease are attached or levied under execution (and Tenant does
not discharge the same within sixty (60) days thereafter); a petition in
bankruptcy, insolvency or for reorganization or arrangement is filed by or
against Tenant (and Tenant fails to secure a stay or discharge thereof within
sixty (60) days thereafter); Tenant is insolvent and unable to pay its debts as
they become due; Tenant makes a general assignment for the benefit of
creditors; Tenant takes the benefit of any insolvency action or law; the
appointment of a receiver or trustee in bankruptcy for Tenant or its assets if
such receivership has not been vacated or set

 

15

 

aside within
thirty (30) days thereafter; or, dissolution or other termination of Tenant’s
corporate charter if Tenant is a corporation.

 

In addition to the
defaults described above, the parties agree that if Tenant receives written
notice of a violation of the performance of any (but not necessarily the same)
term or condition of this Lease three (3) or more times during any twelve
(12) month period, regardless of whether such violations are ultimately cured,
then such conduct shall, at Landlord’s option, represent a separate Default.

 

Section 13.02. Remedies.
Upon the occurrence of any Default, Landlord shall have the following rights
and remedies, in addition to those stated elsewhere in this Lease and those
allowed by law or in equity, any one or more of which may be exercised without
further notice to Tenant:

 

(a)                                  Landlord
may re-enter the Leased Premises and cure any Default of Tenant, and Tenant
shall reimburse Landlord as Additional Rents for any costs and expenses which
Landlord thereby incurs; and Landlord shall not be liable to Tenant for any
loss or damage which Tenant may sustain by reason of Landlord’s action.

 

(b)                                 Without
terminating this Lease, Landlord may terminate Tenant’s right to possession of
the Leased Premises, and thereafter, neither Tenant nor any person claiming
under or through Tenant shall be entitled to possession of the Leased Premises,
and Tenant shall immediately surrender the Leased Premises to Landlord, and
Landlord may re-enter the Leased Premises and dispossess Tenant and any other
occupants of the Leased Premises by any lawful means and may remove their
effects, without prejudice to any other remedy that Landlord may have. Upon
termination of possession, Landlord may (i) re-let all or any part thereof
for a term different from that which would otherwise have constituted the
balance of the Lease Term and for rent and on terms and conditions different
from those contained herein, whereupon Tenant shall be immediately obligated to
pay to Landlord an amount equal to the present value (discounted at the Prime
Rate) of the difference between the rent provided for herein and that provided
for in any lease covering a subsequent re-letting of the Leased Premises, for
the period which would otherwise have constituted the balance of the Lease Term
(the “Accelerated Rent Differences”), or (ii) without re-letting, declare
the present value (discounted at the Prime Rate) of all rent which would have
been due under this Lease for the balance of the Lease Term to be immediately
due and payable as liquidated damages (the “Accelerated Rents”). Upon
termination of possession, Tenant shall be obligated to pay to Landlord (A) the
Accelerated Rent Differences or the Accelerated Rents, whichever is applicable,
(B) all loss or damage that Landlord may sustain by reason of Tenant’s
Default (“Default Damages”), which shall include, without limitation, expenses
of preparing the Leased Premises for re-letting, demolition, repairs, tenant
finish improvements, brokers’ commissions and attorneys’ fees, and (C) all
unpaid Minimum Annual Rents and Additional Rents that accrued prior to the date
of termination of possession, plus any interest and late fees due hereunder
(the “Prior Obligations”).

 

(c)                                  Landlord
may terminate this Lease and declare the Accelerated Rents to be immediately
due and payable, whereupon Tenant shall be obligated to pay to Landlord (i) the
Accelerated Rents, (ii) all of Landlord’s Default Damages, and (iii) all
Prior Obligations. It is expressly agreed and understood that all of Tenant’s
liabilities and obligations set forth in this subsection (c) shall
survive termination.

 

(d)                                 Landlord
and Tenant acknowledge and agree that the payment of the Accelerated Rent
Differences or the Accelerated Rents as set above shall not be deemed a
penalty, but merely shall constitute payment of liquidated damages, it being
understood that actual damages to Landlord are extremely difficult, if not
impossible, to ascertain. Neither the filing of a dispossessory proceeding nor
an eviction of personalty in the Leased Premises shall be deemed to terminate
the Lease.

 

(e)                                  Landlord
may sue for injunctive relief or to recover damages for any loss resulting from
the Default.

 

Section 13.03. Landlord’s
Default and Tenant’s Remedies. Landlord shall be in default if it fails to
perform any term, condition, covenant or obligation required under this Lease
for a period of thirty (30) days after written notice thereof from Tenant to
Landlord; provided, however, that if the term, condition, covenant or
obligation to be performed by Landlord is such that it cannot reasonably be
performed within thirty (30) days, such default shall be deemed to have been
cured if Landlord commences such performance within said thirty-day period and
thereafter diligently undertakes to complete the same. Upon the occurrence of
any such default, Tenant may sue for injunctive relief or to recover damages
for any loss directly resulting from the breach, but Tenant shall not be
entitled to terminate this Lease or withhold, offset or abate any sums due
hereunder. As to Landlord’s maintenance and repair obligations hereunder inside
the Leased Premises, if Landlord has not cured or commenced to cure a
maintenance or repair default set forth in said notice from Tenant within said
30-day period, Tenant may undertake all reasonable action to cure Landlord’s
failure of performance. If Tenant elects to cure said default Tenant shall,
prior to commencement of said work, provide to Landlord a specific description
of the work to be performed by Tenant and the name of Tenant’s contractor. Any
materials

 

16

 

used shall be of
equal or better quality than currently exists in the Building and Tenant’s
contractor shall be adequately insured and of good reputation. Landlord agrees
to reimburse Tenant on demand for all reasonable, third party out-of-pocket
expenses incurred by Tenant in connection therewith, provided that Tenant
delivers to Landlord adequate bills or other supporting evidence substantiating
said cost.

 

Section 13.04. Limitation of
Landlord’s Liability. If Landlord shall fail to perform any term,
condition, covenant or obligation required to be performed by it under this
Lease and if Tenant shall, as a consequence thereof, recover a money judgment
against Landlord, Tenant agrees that it shall look solely to Landlord’s right,
title and interest in and to the Building including the rents and profits of
the Building and insurance proceeds, for the collection of such judgment; and
Tenant further agrees that no other assets of Landlord shall be subject to
levy, execution or other process for the satisfaction of Tenant’s judgment.

 

Section 13.05. Nonwaiver of
Defaults. Neither party’s failure or delay in exercising any of its rights
or remedies or other provisions of this Lease shall constitute a waiver thereof
or affect its right thereafter to exercise or enforce such right or remedy or
other provision. No waiver of any default shall be deemed to be a waiver of any
other default. Landlord’s receipt of less than the full rent due shall not be
construed to be other than a payment on account of rent then due, nor shall any
statement on Tenant’s check or any letter accompanying Tenant’s check be deemed
an accord and satisfaction. No act or omission by Landlord or its employees or
agents during the Lease Term shall be deemed an acceptance of a surrender of
the Leased Premises, and no agreement to accept such a surrender shall be valid
unless in writing and signed by Landlord.

 

Section 13.06. Attorneys’
Fees. If either party defaults in the performance or observance of any of
the terms, conditions, covenants or obligations contained in this Lease and the
non-defaulting party obtains a judgment against the defaulting party, then the defaulting
party agrees to reimburse the non-defaulting party for reasonable attorneys’
fees incurred in connection therewith. In addition, if a monetary Default shall
occur and Landlord engages outside counsel to exercise its remedies hereunder,
and then Tenant cures such monetary Default, Tenant shall pay to Landlord, on
demand, all expenses incurred by Landlord as a result thereof, including
reasonable attorneys’ fees, court costs and expenses actually incurred.

 

ARTICLE 14 -
LANDLORD’S RIGHT TO RELOCATE TENANT 

 

Intentionally
Omitted.

 

ARTICLE 15 -
TENANT’S RESPONSIBILITY REGARDING

ENVIRONMENTAL LAWS AND HAZARDOUS SUBSTANCES

 

Section 15.01. Environmental
Definitions.

 

(a)                                  “Environmental
Laws” shall mean all present or future federal, state and municipal laws,
ordinances, rules and regulations applicable to the environmental and
ecological condition of the Leased Premises, and the rules and regulations
of the Federal Environmental Protection Agency and any other federal, state or
municipal agency or governmental board or entity having jurisdiction over the
Leased Premises.

 

(b)                                 “Hazardous
Substances” shall mean those substances included within the definitions of “hazardous
substances,” “hazardous materials,” “toxic substances” “solid waste” or “infectious
waste” under Environmental Laws and petroleum products.

 

Section 15.02. Restrictions
on Tenant. Tenant shall not cause or permit the use, generation, release,
manufacture, refining, production, processing, storage or disposal of any
Hazardous Substances on, under or about the Leased Premises, or the
transportation to or from the Leased Premises of any Hazardous Substances,
except as necessary and appropriate for its Permitted Use in which case the
use, storage or disposal of such Hazardous Substances shall be performed in
compliance with the Environmental Laws and the highest standards prevailing in
the industry.

 

Section 15.03. Notices,
Affidavits, Etc. Tenant shall immediately (a) notify Landlord of (i) any
violation by Tenant, its employees, agents, representatives, customers,
invitees or contractors of any Environmental Laws on, under or about the Leased
Premises, or (ii) the presence or suspected presence of any Hazardous
Substances on, under or about the Leased Premises, and (b) deliver to
Landlord any notice received by Tenant relating to (a)(i) and (a)(ii) above
from any source. Tenant shall execute affidavits, representations and the like
within ten (10) days of Landlord’s request therefor concerning Tenant’s
best knowledge and belief regarding the presence of any Hazardous Substances
on, under or about the Leased Premises.

 

17

 

Section 15.04. Tenant’s
Indemnification. Tenant shall indemnify Landlord and Landlord’s managing
agent from any and all claims, losses, liabilities, costs, expenses and
damages, including attorneys’ fees, costs of testing and remediation costs,
incurred by Landlord in connection with any breach by Tenant of its obligations
under this Article 15. The covenants and obligations under this Article 15
shall survive the expiration or earlier termination of this Lease.

 

Section 15.05. Existing
Conditions. Notwithstanding anything contained in this Article 15
to the contrary, Tenant shall not have any liability to Landlord under this Article 15
resulting from any conditions existing, or events occurring, or any Hazardous
Substances existing or generated, at, in, on, under or in connection with the
Leased Premises prior to the Original Premises Commencement Date and the
Additional Space Commencement Date of this Lease (or any earlier occupancy of
the Leased Premises by Tenant) except to the extent Tenant exacerbates the
same.

 

ARTICLE 16 -
MISCELLANEOUS

 

Section 16.01. Benefit of
Landlord and Tenant. This Lease shall inure to the benefit of and be
binding upon Landlord and Tenant and their respective successors and assigns.

 

Section 16.02. Governing Law.
This Lease shall be governed in accordance with the laws of the State where the
Building is located.

 

Section 16.03. Force Majeure.
Landlord and Tenant (except with respect to the payment of any monetary
obligation) shall be excused for the period of any delay in the performance of
any obligation hereunder when such delay is occasioned by causes beyond its
control, including but not limited to work stoppages, boycotts, slowdowns or
strikes; shortages of materials, equipment, labor or energy; unusual weather
conditions; or acts or omissions of governmental or political bodies.

 

Section 16.04. Examination
of Lease. Submission of this instrument by Landlord to Tenant for
examination or signature does not constitute an offer by Landlord to lease the
Leased Premises. This Lease shall become effective, if at all, only upon the
execution by and delivery to both Landlord and Tenant. Execution and delivery of
this Lease by Tenant to Landlord constitutes an offer to lease the Leased
Premises on the terms contained herein. The offer by Tenant will be irrevocable
until 6:00 p.m. EST, fifteen (15) days after the date Landlord receives
the Lease executed by Tenant.

 

Section 16.05. Indemnification
for Leasing Commissions. The parties hereby represent and warrant that the
only real estate brokers involved in the negotiation and execution of this
Lease are the Brokers and that no other party is entitled, as a result of the
actions of the respective party, to a commission or other fee resulting from
the execution of this Lease. Each party shall indemnify the other from any and
all liability for the breach of this representation and warranty on its part
and shall pay any compensation to any other broker or person who may be
entitled thereto. Landlord shall pay any commissions due Brokers based on this
Lease pursuant to separate agreements between Landlord and Brokers.

 

Section 16.06. Notices.
Any notice required or permitted to be given under this Lease or by law shall
be deemed to have been given if it is written and delivered in person or by
overnight courier or mailed by certified mail, postage prepaid, to the party
who is to receive such notice at the address specified in Section 1.01(1).
If sent by overnight courier, the notice shall be deemed to have been given the
next business day after sending. If mailed, the notice shall be deemed to have
been given on the date that is three (3) business days following mailing.
If delivered by hand, the notice shall be deemed to have been delivered on the
date delivered provided same is a business day, or on the next business day.
Either party may change its address by giving written notice thereof to the
other party.

 

Section 16.07. Partial
Invalidity; Complete Agreement. If any provision of this Lease shall be
held to be invalid, void or unenforceable, the remaining provisions shall
remain in full force and effect. This Lease represents the entire agreement
between Landlord and Tenant covering everything agreed upon or understood in
this transaction. There are no oral promises, conditions, representations,
understandings, interpretations or terms of any kind as conditions or
inducements to the execution hereof or in effect between the parties. No change
or addition shall be made to this Lease except by a written agreement executed
by Landlord and Tenant.

 

Section 16.08. Financial
Statements. During the Lease Term and any extensions thereof, Tenant shall
provide to Landlord within thirty (30) days of Landlord’s written request, but
no more frequently (unless needed in connection with the sale or financing of
the Building) than once during any calendar year, a copy of Tenant’s most
recent financial statements prepared as of the end of Tenant’s fiscal year.
Such financial statements shall be signed by Tenant or an officer of Tenant, if
applicable, who shall attest to the truth and accuracy of the information set
forth in such statements, or if the Minimum Annual Rents hereunder exceed $100,000.00,
said statements shall be certified and audited. All financial statements

 

18

 

 

provided by Tenant
to Landlord hereunder shall be prepared in conformity with generally accepted
accounting principles, consistently applied.

 

Section 16.09. Representations
and Warranties.

 

(a)                                  Tenant
hereby represents and warrants that (i) Tenant is duly organized, validly
existing and in good standing (if applicable) in accordance with the laws of
the State under which it was organized; (ii) Tenant is authorized to do
business in the State where the Building is located; and (iii) the
individual(s) executing and delivering this Lease on behalf of Tenant has been
properly authorized to do so, and such execution and delivery shall bind Tenant
to its terms.

 

(b)                                 Landlord
hereby represents and warrants that (i) Landlord is duly organized,
validly existing and in good standing (if applicable) in accordance with the
laws of the State under which it was organized; (ii) Landlord is
authorized to do business in the State where the Building is located; and (iii) the
individual(s) executing and delivering this Lease on behalf of Landlord has
been properly authorized to do so, and such execution and delivery shall bind
Landlord to its terms.

 

Section 16.10. Signage.

 

(a)                                  Landlord,
at its cost and expense, shall provide Tenant with Building standard signage on
the main Building directory and at the entrance to the Leased Premises. Any
changes requested by Tenant to the initial directory or suite signage shall be
made at Tenant’s sole cost and expense and shall be subject to Landlord’s
approval. Landlord may install such other signs, advertisements, notices or
tenant identification information on the Building directory, tenant access doors
or other areas of the Building, as it shall deem necessary or proper. Tenant
shall not place any exterior signs on the Leased Premises or interior signs
visible from the exterior of the Leased Premises without the prior written
consent of Landlord. Notwithstanding any other provision of this Lease to the
contrary, Landlord may immediately remove any sign(s) placed by Tenant in
violation of this Section 16.10.

 

(b)                                 Provided
that (i) Tenant is not currently in Default beyond the expiration of any
notice and cure period to which Tenant may be entitled; (ii) Tenant
originally named herein or a Permitted Transferee remains in possession of and
has been continuously operating in the entire Leased Premises for the Lease
Term; (iii) Tenant complies with all zoning, municipal and county
ordinances and any other applicable rules and regulations; and (iv) Tenant
obtains Landlord’s written approval as to the type, size, style, color,
location and manner of installation of the sign(s) prior to the installation of
the sign(s), Tenant shall have the right, at its sole coast and expense, to
install:

 

(1)                                  Monument
Sign. A sign on the monument sign located on Higgins Road and servicing the
Building. Tenant shall pay its proportionate share for maintaining and
repairing such sign. Upon the expiration or early termination of this Lease,
Tenant shall remove the sign and repair any damage caused by such removal at
Tenant’s sole cost and expense; and

 

(2)                                  Exterior
Signs. Two (2) signs on the top right or top left corner of either side
of the Building. The signs shall be installed, maintained and repaired by
Tenant at its sole cost and expense. Upon the expiration or early termination
of this Lease, Tenant shall remove the signs and repair any damage caused by
such removal at Tenant’s sole cost and expense.

 

Section 16.11. Parking.
Tenant shall be entitled to the non-exclusive use of approximately 3.8 parking
spaces designated for the Building by Landlord per one thousand (1,000)
rentable square feet of space leased by Tenant from Landlord pursuant to the
terms of this Lease. Tenant agrees not to overburden the parking facilities and
agrees to cooperate with Landlord and other tenants in the use of the parking
facilities. Landlord reserves the right in its absolute discretion to determine
whether parking facilities are becoming crowded and, in such event, to allocate
parking spaces between Tenant and other tenants. There will be no assigned
parking unless Landlord, in its sole discretion, deems such assigned parking
advisable. No vehicle may be repaired or serviced in the parking area and any
vehicle brought into the parking area by Tenant, or any of Tenant’s employees,
contractors or invitees, and deemed abandoned by Landlord will be towed and all
costs thereof shall be borne by the Tenant. All driveways, ingress and egress,
and all parking spaces are for the joint use of all tenants. There shall be no
parking permitted on any of the streets or roadways located within the Park. In
addition, Tenant agrees that its employees will not park in the spaces
designated visitor parking. Notwithstanding anything contained herein to the
contrary, during the Lease Terms for the Original Premises and the Additional
Space, Tenant shall be entitled to twelve (12) reserved parking spaces in the
parking garage for the Building and one (1) visitor parking space located
in the front of the Building at no cost to Tenant; provided, however, that
Tenant shall pay for all signage required for such parking spaces.

 

Section 16.12. Consent.
Where the consent or approval of a party is required, such consent will not be
unreasonably withheld, conditioned or delayed.

 

19

 

Section 16.13. Time.
Time is of the essence of each term and provision of this Lease.

 

Section 16.14. Patriot Act.
Each of Landlord and Tenant, each as to itself, hereby represents its
compliance with all applicable anti-money laundering laws, including, without
limitation, the USA Patriot Act, and the laws administered by the United States
Treasury Department’s Office of Foreign Assets Control, including, without
limitation, Executive Order 13224 (“Executive Order”). Each of Landlord and
Tenant further represents (i) that it is not, and it is not owned or
controlled directly or indirectly by any person or entity, on the SDN List
published by the United States Treasury Department’s Office of Foreign Assets
Control and (ii) that it is not a person otherwise identified by
government or legal authority as a person with whom a U.S. Person is prohibited
from transacting business. As of the date hereof, a list of such designations
and the text of the Executive Order are published under the internet website
address www.ustreas.gov/offices/enforcement/ofac.

 

Section 16.15. Use of
Auditorium. During the Lease Terms for the Original Premises and the
Additional Space, Tenant shall be allowed to use the Building’s auditorium for
up to thirty-six (36) full days per calendar year, without charge. Tenant shall
schedule its use of the auditorium with Landlord at least two (2) days
in advance. Tenant’s use of the auditorium is subject to any prior scheduled
use and Landlord’s standard rules and regulations for use of the
auditorium.

 

Section 16.16. Rooftop
Installation.

 

(a)                                  Roof
Area. “Roof Area” shall mean the surface of the roof of the Building
depicted on Exhibit F attached
hereto.

 

(b)                                 Dish.
“Dish” shall mean one (1) satellite dish (18 inches in diameter) and
related equipment as more particularly set forth on Exhibit G attached hereto.

 

(c)                                  License
of Roof Area. Provided Tenant is not in Default hereunder, and provided
further that Tenant complies with all zoning and other municipal and county rules and
regulations, and all applicable restrictions of record, Tenant shall have the
right, at its own cost and expense and subject to the terms hereof, to install,
operate and maintain the Dish on the Roof Area, so long as the Dish is used
exclusively for the use of Tenant and/or any Permitted Transferee and not sold
to or utilized in any manner by a third party. Tenant shall pay Landlord a
rental rate of Fifty and 00/100 Dollars ($50.00) for each twelve (12) inches of
the Dish per month (the “Rooftop License Fee”) (prorated for any partial month)
payable to Landlord as additional rent hereunder on the first day of each month
commencing upon installation of the Dish (the “Dish Commencement Date”). Tenant
shall be solely responsible for obtaining any necessary permits and licenses
required to install and operate the Dish. Copies of such permits and licenses
shall be provided to Landlord.

 

(d)                                 Installation
of the Dish.

 

(i)                                     The
size, location, design and manner of installation of the Dish and all related
wiring shall be designated and approved by Landlord. After obtaining written
approval of Landlord, Tenant shall have reasonable access to the roof for
installation and maintenance of the Dish and shall have the right to install
all reasonable wiring related thereto. However, unless otherwise approved by
Landlord in writing, in no event shall Tenant be permitted to penetrate the
roof membrane in connection with the installation or maintenance of the Dish.
Tenant represents and warrants that the installation and maintenance of the
Dish will not cause any damage to the structural portions of the Building.
Tenant shall be responsible for repairing any such damage to the structure.

 

(ii)                                  Tenant
shall use the roofing company specified by the Landlord to perform any work
affecting the roof, provided the costs charged by such roofer are competitive
with charges for similar services within the same geographic region. Tenant
shall match as nearly as possible the color of the Dish to the existing facade
of the Building. All cable runs, conduit and sleeving shall be installed in a
good workmanlike manner. Cables and transmission lines shall be routed and
attached in accordance with current, state of the art industry practices. The
Dish shall be identified with permanently marked, weather proof tags at the
following locations: (i) at each antenna bracket; (ii) at the
transmission line building entry point; (iii) at the interior wall feed
through or any other transmission line exit point; and (iv) at any
transmitter combiner, duplexer, or multifed receive port. In addition, all
Tenant telephone blocks, demarcs, and cables shallbe clearly identified with the Tenant’s name, type of line,
and circuit number.

 

(iii)                               Tenant
shall install, operate and maintain the Dish in accordance with all federal,
state and local laws and regulations. Prior to installation of the Dish, Tenant
shall, on behalf of the installer, provide Landlord with a certificate of
insurance reasonably satisfactory to Landlord.

 

20

 

(e)                                  Roof
Work. If, during the Lease Terms for the Original Premises and the
Additional Space, as the same may be extended, Landlord needs to perform
maintenance work to Landlord’s equipment on the roof of the Building or repair
or replace the roof of the Building (“Roof Work”), Tenant agrees to cooperate
and work with Landlord (at Tenant’s sole cost and expense) to achieve said Roof
Work. Landlord agrees to provide at least thirty (30) days’ notice to Tenant of
its intention to perform the Roof Work; except in the case of emergency Roof
Work in which case Landlord shall give as much notice as possible under the
circumstances. Such Roof Work may require the relocation of any portion of the
Dish at Tenant’s cost and expense or Tenant’s installation of temporary
equipment. Moreover, if a temporary relocation of the Dish is required to
accommodate the Roof Work, Landlord agrees to exercise commercially reasonable
efforts to identify a technically feasible alternative location for the
relocation portion of the Dish which will not impede the Roof Work.
Notwithstanding the foregoing, Landlord does not warrant and represent that in
all circumstances that an alternative location will be available and,
consequently, Landlord’s obligation to provide such alternative location is
subject to the availability of such space and under no circumstances shall
Landlord be liable to Tenant for any consequential damages as a result of such
relocation including, but not limited to, loss of business income or
opportunity. Notwithstanding the foregoing, Tenant shall move the Dish back to
its original location after the Roof Work is completed unless the parties agree
to utilize the relocated area permanently.

 

(f)                                    Interference.
Tenant shall not use the Roof Area or the Dish in any way that interferes with
the use and enjoyment of the Property by: (i) Landlord, (ii) tenants
or licensees of Landlord leasing or licensing space in the Building primarily
for the same or similar use as a majority of the other tenants or licensees in
the Building and which is consistent with the purpose for which the Building is
operated (“Building Tenants”), or (iii) tenants or licensees of Landlord
who commenced occupancy at the Building on a date which precedes the Dish
Commencement Date, and who are leasing or licensing space from Landlord and
using the Property as a communications transmitting or receiving site (“Existing
Licensees”). The operation of the Dish shall not interfere with the maintenance
or operation of the Building, including but not limited to the roof, MATV, CATV
or other video systems, HVAC systems, electronically controlled elevator
systems, computers, telephone systems, or any other system serving the Building
and/or its occupants. The operation of the Dish shall not interfere with radio
or telecommunication equipment installed by telecommunication service providers
at the Building prior to the Dish Commencement Date. Tenant shall indemnify
Landlord and hold Landlord harmless from all expenses, costs, damages, loss,
claims or other expenses and liabilities arising from any such interference.
Tenant agrees to cease all operations (except for testing as approved by
Landlord) within twenty-four (24) hours of receipt of notice from Existing
Licensees of such interference and to continue to cease all operations until
the interference has been corrected to the sole satisfaction of the Landlord.
Landlord will use commercially reasonable efforts to cooperate with Tenant to
find an alternate location for the Dish. If such interference has not been
corrected within thirty (30) days, Landlord may require Tenant to remove the
specific items from the Dish causing such interference. All operations by
Tenant shall be lawful and in compliance with all FCC rules and
regulations. Tenant shall be responsible for all costs associated with any
tests deemed necessary to resolve any and all interference which Landlord
determines or reasonably believes is being caused by the Dish or Tenant’s use
thereof.

 

(g)                                 Emergencies.
Notwithstanding the foregoing, if an emergency situation exists which Landlord
reasonably determines, in its sole discretion, to be attributable to the Dish,
Landlord shall immediately notify Tenant verbally, who shall act diligently and
expediently to remedy the emergency situation. Should Tenant fail to so remedy
the emergency situation or should Landlord reasonably determine that the
response time by Tenant is not adequate given the nature of the emergency,
Landlord may then shut down the Dish and Tenant shall have no recourse against
Landlord as a result of such action.

 

(h)                                 Removal
of the Dish upon Termination. Following any termination or expiration of
this Lease, Tenant shall remove all of the Dish from the Building. In
performing such removal, Tenant shall restore the Roof Area and any personal
property and fixtures thereon to as good a condition as they were prior to the
installation or placement of the Dish, reasonable wear and tear excepted. If
Tenant fails to remove the Dish within thirty (30) days after expiration or
earlier termination of this Lease, Landlord may remove and dispose of the Dish
and Tenant shall reimburse Landlord for the costs of such removal and
restoration of the Roof Area. Moreover, Landlord may deem the Dish abandoned in
which event the Dish shall become Landlord’s property. This subsection (H) shall
survive the expiration or earlier termination of the Lease.

 

(i)                                     Utilities.
Tenant shall be responsible for obtaining and paying for all utilities to
operate the Dish.

 

(j)                                     Tenant’s
Right to Discontinue Use. Tenant reserves the right to discontinue its use
of the Dish at any time prior to the termination of the Lease or any renewal or
extension thereof for any reason whatsoever, provided that Tenant gives thirty
(30) days prior written notice thereof to Landlord.

 

21

 

(k)                                  Indemnification.
Any language in the Lease notwithstanding, Landlord shall not be liable and
Tenant shall indemnify, defend and hold Landlord harmless from and against any
and all liability, damages (including but not limited to personal injury,
death, or property damages), costs, expenses, and attorneys’ fees incurred by
Landlord arising from any Dish related cause whatsoever, including those
arising from the installation, use, maintenance and removal thereof.

 

(l)                                     Rooftop
License Fee for Extension Term. In the event Tenant exercises its option to
extend the Lease Term as provided in Section 16.17 of the Lease,
Landlord and Tenant hereby acknowledge and agree that the Rooftop License Fee
shall be increased by fifteen percent (15%) for the Extension Term.

 

Section 16.17. Options to
Extend.

 

(a)                                  Grant
and Exercise of Option. Provided that (i) no default has occurred and
is then continuing, and (ii) Tenant originally named herein or a Permitted
Transferee remains in possession of and has been continuously operating in at
least one (1) entire floor of the Leased Premises throughout the term
immediately preceding the Extension Term (as defined below), Tenant shall have
the option to extend the Lease Term for two (2) additional periods of five
(5) years each (the “Extension Term(s)”). Each Extension Term shall be
upon the same terms and conditions contained in the Lease except (w) this
provision giving two (2) extension options shall be amended to reflect the
remaining options to extend, if any, (x) Landlord may require an additional
security deposit or letter of credit for the applicable Extension Term based
upon the creditworthiness of Tenant at the time Tenant exercises such option,
(y) any improvement allowances or other concessions applicable to the Leased
Premises under the Lease shall not apply to the Extension Term, and (z) the Minimum
Annual Rent shall be adjusted as set forth below (the “Rent Adjustment”).
Tenant shall exercise each option by (i) delivering to Landlord, no later
than nine (9) months prior to the expiration of the preceding term,
written notice of Tenant’s desire to extend the Lease Term. Tenant’s failure to
timely exercise such option shall be deemed a waiver of such option and any
succeeding option. Landlord shall notify Tenant of the amount of the Rent
Adjustment no later than ninety (90) days prior to the commencement of the
Extension Term. Tenant shall be deemed to have accepted the Rent Adjustment if
it fails to deliver to Landlord a written objection thereto within five (5) business
days after receipt thereof. If Tenant properly exercises its option to extend,
Landlord and Tenant shall execute an amendment to the Lease (or, at Landlord’s
option, a new lease on the form then in use for the Building) reflecting the
terms and conditions of the Extension Term within thirty (30) days after Tenant’s
acceptance (or deemed acceptance) of the Rent Adjustment.

 

(b)                                 Rent
Adjustment. The Minimum Annual Rent for the applicable Extension Term shall
be an amount equal to the Minimum Annual Rent then being quoted by Landlord to
prospective renewal tenants of the Building for space of comparable size and
quality and with similar or equivalent improvements and occupancy rates as are
found in the Building, and if none, then in similar buildings in the Park,
provided, however, that if Tenant delivers to Landlord a written objection to
Landlord’s calculation of the Rent Adjustment within ten (10) business
days after Tenant’s receipt of Landlord’s determination of the Rent Adjustment,
and the parties cannot agree on a Rent Adjustment within ten (10) business
days after Tenant’s written objection then Tenant may retract its exercise of
its option to extend, or Tenant may choose arbitration to determine the Rent
Adjustment. If Tenant chooses arbitration, Tenant shall give Landlord written
notice of its desire to seek arbitration within three (3) days after
expiration of such ten (10) business day period (“Arbitration Notice”).
Within ten (10) days after Tenant provides Landlord with its Arbitration
Notice, the parties shall each appoint an appraiser to determine the Rent
Adjustment for the Leased Premises. Each appraiser so selected shall be either
an MAI appraiser or a licensed real estate broker, each having at least ten (10) years
prior experience in the appraisal or leasing of comparable space in the
metropolitan area in which the Leased Premises are located and with a working
knowledge of current rental rates and practices. If the two appraisers cannot
agree upon the Rent Adjustment for the Leased Premises within twenty (20) days
after their appointment, then, within ten (10) days after the expiration
of such twenty (20) day period, the two appraisers shall select a third
appraiser meeting the above criteria. Once the third appraiser has been
selected as provided for above, then such third appraiser shall within ten (10) days
after appointment make its determination of the Rent Adjustment. The average of
the two closest determinations of the Rent Adjustment shall be used as the
Minimum Annual Rent for the applicable Extension Term and shall be binding on
both Landlord and Tenant. Landlord and Tenant shall each bear the cost of its
appraiser and shall share the cost of the third. If Tenant fails to provide the
Arbitration Notice as provided above, then Tenant’s exercise of its option to
extend shall be deemed retracted.

 

Section 16.18. Option to
Expand. Any time between the thirty-sixth (36th) and
fifty-fourth (54th) months after the Additional Premises
Commencement Date, and provided that (i) no default has occurred and is
then continuing, (ii) Tenant originally named herein or its Permitted
Transferee remains in possession of and has been continuously operating in the
entire Leased Premises throughout the Lease Term, and (iii) Tenant
requires approximately 6,000 - 12,000 rentable square feet, Landlord will use
commercially reasonable efforts to accommodate Tenant’s expansion needs in the
Building or another

 

22

 

building owned by
Landlord, or an affiliated entity of Landlord, in the Park. In the event Tenant
elects to exercise its expansion option, Tenant hereby agrees that Tenant shall
provide Landlord with twelve (12) months prior written notice of its desire to
expand within the time period set forth herein. If expansion space is available
for lease to Tenant, any expansion or relocation shall occur, if at all, only
upon terms satisfactory to both Landlord and Tenant as set forth in an
amendment to this Lease or a new lease, including without limitation the
requirement of any additional security deposit or letter of credit for such
expansion based upon the creditworthiness of Tenant at the time Tenant
exercises such option, and the Minimum Annual Rent at that time shall be an
amount equal to the Rent Adjustment as defined in Section 16.17 (b) above.
If a new lease is entered into, then this Lease shall terminate as if it has
expired upon the commencement date of the new lease.

 

Section 16.19. Right of
First Refusal.

 

(a)                                  Provided
that (i) no default has occurred and is then continuing, and (ii) Tenant
originally named herein or a Permitted Transferee remains in possession of and
has been continuously operating in the entire Leased Premises throughout the
Lease Terms for the Original Premises and the Additional Space, and subject to
any rights of other tenants to the Refusal Space (as defined herein) and
Landlord’s right to renew or extend the lease term of any other tenant with
respect to the portion of the Refusal Space now or hereafter leased by such
other tenant, Tenant shall have an ongoing right of first refusal (“Refusal
Option”) to lease additional space in the Building located on the second (2nd)
and eighth (8th) floors as shown crosshatched on the attached Exhibit H (“Refusal Space”). Prior
to entering into any lease that includes all or any portion of the Refusal
Space, Landlord shall notify Tenant in writing (“Landlord’s Notice”) of
Landlord’s receipt of an arms-length offer to lease such space that Landlord is
willing to accept from a bona fide third party offeror (“Bona Fide Offer”) and
setting forth the material terms of the Bona Fide Offer and such other terms as
are herein provided. If the Bona Fide Offer includes space in the Building in
addition to the Refusal Space, then the Refusal Space shall be deemed to
include, and this Refusal Option shall be deemed to apply to, all of the space
included in the Bona Fide Offer. Tenant shall have ten (10) days after
Tenant receives Landlord’s Notice in which to notify Landlord in writing of its
election to lease the Refusal Space upon the terms set forth in Landlord’s
Notice. If Tenant declines to exercise this Refusal Option or fails to give
such written notice within the time period required, Tenant shall be deemed to
have waived this Refusal Option, and thereafter, except as provided in (c) below,
this Refusal Option shall be void and of no further force or effect, and
Landlord shall be free to lease the Refusal Space to the bona fide offeror or
any other third party.

 

(b)                                 The
term for the Refusal Space shall be the greater of (i) the term set forth
in the Bona Fide Offer or (ii) the then remaining period of the Lease
Terms for the Original Premises and the Additional Space; provided, however,
that if the term set forth in the Bona Fide Offer is greater than the then
remaining period of the Lease Terms, the Lease Terms for the Original Premises
and the Additional Space for the then existing Leased Premises (“Existing
Premises”) shall be extended to be coterminous with the term for the Refusal
Space and the Option to Terminate set forth in Section 16.20 below shall
be null and void. The Refusal Space shall be offered to Tenant at the rental
rate and upon such other terms and conditions as are set forth in the Bona Fide
Offer and herein, but in no event shall such rental rate be less than the then
current rental rate under this Lease. If the Lease Term for the Existing
Premises is extended as provided above, the Minimum Annual Rent for such
extension term shall be an amount equal to the Minimum Annual Rent then being
quoted by Landlord to prospective renewal tenants of the Building for space of comparable
size and quality and with similar or equivalent improvements as are found in
the Building, and if none, then in similar buildings in the Complex; provided,
however, that in no event shall the Minimum Annual Rent during such extension
term be less than the highest Minimum Annual Rent payable during the
immediately preceding term.

 

(c)                                  If
Tenant shall exercise the Refusal Option, the parties shall enter into an
amendment to this Lease adding the Refusal Space to the Leased Premises upon
the terms and conditions set forth herein and making such other modifications
to this Lease as are appropriate under the circumstances, including without
limitation, the requirement of any additional security deposit or letter of
credit for the Refusal Space as determined by Landlord based upon the
creditworthiness of Tenant at the time Tenant exercises such option. If Tenant
shall fail to enter into such amendment within ten (10) days following
Tenant’s exercise of the Refusal Option, then Landlord may terminate this Refusal
Option, by notifying Tenant in writing, in which event this Refusal Option
shall become void and of no further force or effect, and Landlord shall
thereafter be free to lease the Refusal Space to the bona fide offeror or any
other third party. If Landlord does not enter into a lease with a third party
under the terms and conditions contained in the Bona Fide Offer within one
hundred eighty (180) days after Tenant declines or fails to exercise this
Refusal Option, or if Landlord desires to materially alter or modify the terms
and conditions of the Bona Fide Offer, Landlord shall be required to present
the altered or modified Bona Fide Offer to Tenant pursuant to this Refusal
Option, in the same manner that the original Bona Fide Offer was submitted to Tenant.

 

23

 

Section 16.20. Option to Terminate. Provided that (a) no default has
occurred and is then continuing, and (b) Tenant originally named herein or
a Permitted Transferee remains in possession of and has been continuously
operating in the entire Leased Premises throughout the Lease Term for the
Original Premises and the Additional Space, Tenant shall have the right to
terminate the Lease effective as of February 28, 2015 (the “Early
Termination Date”). In order to exercise such termination right, Tenant shall
notify Landlord of such exercise in writing no later than February 28,
2014, and together with such notice, Tenant shall deliver to Landlord, as an
agreed upon termination fee, an amount equal to $1,730,740.00 (the “Termination
Fee”). Such payment is made in consideration for Landlord’s grant of this
option to terminate to compensate Landlord for rental and other concessions
given to Tenant and for other good and valuable consideration. The termination
fee does not constitute payment of rent to Landlord. If Tenant fails to notify
Landlord by the deadline set forth above, Tenant shall have waived Tenant’s
termination right for the remainder of the term of the Lease and any extensions
thereof. If such right is validly exercised, then upon such Early Termination
Date, Tenant shall surrender the Leased Premises to Landlord in accordance with
the terms of the Lease and each party shall be released from further liability
hereunder; provided, however, that such termination shall not affect any right
or obligation arising prior to such termination or which specifically survives
termination of the Lease. In the event that Tenant exercises any of its options
under Sections 16.17 or 16.18 of the Lease, Tenant hereby acknowledges that the
Termination Fee is subject to adjustment using the following formula: the
Termination Fee plus an amount equal to the sum of (i) any
unamortized brokerage commissions, (ii) the unamortized portion of any
tenant finish improvements, and (iii) any free rent given Tenant in
connection with such options.

 

Section 16.21. Security. Landlord agrees to allow Tenant to install a security
system in the Leased Premises in the location determined by Landlord. Tenant
shall provide Landlord with plans and specifications relating to the
installation of such security system. Landlord shall have the right to approve
the plans and specifications for such security system prior to Tenant’s
installation of same. Notwithstanding anything in this section to the
contrary, Tenant shall be responsible for all costs associated with the
installation, maintenance, use and removal of such security system. Tenant
agrees to indemnify, defend and hold Landlord harmless from and against any and
all liability, damages (including, but not limited to personal injury, death
and property damages), costs, expenses and attorney’s fees incurred by Landlord
arising from the security system, or related cause whatsoever, including those
arising from the installation, use, maintenance and removal thereof.

 

Section 16.22. Fitness Center. Landlord, at its sole cost and expense, shall
construct a fitness center within the Leased Premises in accordance with the
Space Plan and CD’s (as such terms are defined in Exhibit B).

 

Section 16.23. Storage Space. Provided Tenant is not in default hereunder at
any time during the Lease Term, Landlord hereby agrees to provide to Tenant an
approximately 1,000 - 2,000 rentable square feet of storage space in the
Building at the rental rate of Twelve and 50/100 Dollars ($12.50) per square
foot during the Lease Term. Tenant shall not be required to pay Additional Rent
on such storage space. In the event Tenant elects to lease such storage space
from Landlord, Tenant shall execute an amendment to the Lease or Landlord’s
storage lease agreement.

 

Section 16.24. Generator.

 

(a)                                  Tenant, at its sole cost and expense and
subject to the terms of this Lease, shall have the right to install, operate
and maintain an emergency generator and related equipment (collectively, the “Generator”)
at a precise location reasonably satisfactory to Landlord. Tenant shall
install, operate and maintain the emergency generator in accordance with all
federal, state and local laws and regulations and with any protective
covenants. Tenant shall be solely responsible for obtaining any necessary
permits and licenses required to install, operate and maintain the emergency
generator and shall provide copies thereof to Landlord. Prior to installation
of the Generator, Tenant shall provide Landlord with a certificate of insurance
on behalf of the installer reasonably satisfactory to Landlord. Tenant, at
Tenant’s sole cost and expense, shall install screening around the Generator,
the size, location, design and manner of which shall be subject to the written
approval of Landlord. Tenant shall at all times keep the Generator and the
surrounding area in a clean and orderly condition.

 

(b)                                 Tenant, at its sole cost and expense, shall be
responsible for removing the Generator and the screening surrounding the
Generator and for restoring the Building and/or Common Areas affected by the
Generator and screening to their original condition after such removal. Tenant
agrees, within ten (10) days after written notice from Landlord, to remove
the Generator and screening surrounding same in the event any governmental
entity or applicable law or regulation requires removal thereof or Tenant fails
to materially comply with the terms stated herein. Such removal shall be in
accordance with all of the terms and conditions set forth herein. If Tenant
fails to remove the Generator and screening surrounding same from the Building
or Common Areas upon expiration or earlier termination of the Lease, or after
expiration of the ten (10) day

 

24

 

notice period
provided above, the Generator and screening surrounding same shall be deemed
abandoned by Tenant and shall become the property of Landlord, or Landlord may
remove the same at Tenant’s expense.

 

16.25 Contingency. This Lease is contingent upon the Tenant
receiving, on or before November 30, 2006, certain Economic Development
for Growing Economy (EDGE) and Illinois Employer Training Investment Program
(ETIP) incentives from the Illinois Department of Commerce and Economic
Opportunity (DCEO) (the “Incentives”). Tenant acknowledges and agrees that it
has applied for and shall use commercially reasonable efforts to obtain the
Incentives. In the event this contingency is not satisfied on or before November 30,
2006, then (i) this Lease may be terminated by Tenant upon written notice
from Tenant to Landlord on or before November 30, 2006 (“Notice of
Termination”), and (ii) within five (5) days after written request
from Landlord, which request shall contain a detailed actual line item list of
out-of-pocket expenses occurred. Tenant shall reimburse Landlord for all actual
out-of-pocket expenses incurred by Landlord in connection with this Lease
(including without limitation reasonable attorneys fees for in-house counsel)
in an amount not to exceed Three Hundred and Twenty Five Thousand and 00/100 Dollars ($325,000).
If Tenants fails to provide the Notice of Termination on or before November 30,
2006, Tenant shall be deemed to have waived its right to terminate as set forth
in this Section 16.25. Further, in the event Tenant fails to reimburse
Landlord within such five (5) day period, such failure shall be deemed a
default under the Lease and Landlord may, at its option, draw upon the letter
of credit.

 

[The remainder of this page is
intentionally blank]

 

25

 

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

 

 

	
   

  	
   

  	
  OIC
  MIDWEST LLC,

  a Delaware limited liability company

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  MIDWEST
  REALTY HOLDINGS LLC,

  a Delaware limited liability company, its sole member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  Duke
  Realty Limited Partnership, an Indiana limited partnership, its Managing
  Member

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  Duke
  Realty Corporation, d/b/a Duke Realty of Indiana Corporation, its general
  partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  /s/
  Illegible

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Illegible

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Vice
  President — Legal

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  TENANT:

   

  LIFEWATCH
  HOLDING CORPORATION,

  a Delaware corporation

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  /s/
  Fredrick J Mindermann

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
  Fredrick
  J Mindermann

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
  President &
  CEO

  
	
   

  	
   

  	
   

  	
   

  
	
  STATE
  OF IL

  	
                                                  )

  	
   

  	
   

  	
   

  
	
   

  	
                                                  )
  ss:

  	
   

  	
   

  	
   

  
	
  COUNTY
  OF LAKE

  	
                                                  )

  	
   

  	
   

  	
   

  
												

 

Before me, a Notary Public in and for said County and State, personally
appeared Fredrick J. Mindermann, by me known to be the President & CEO
of LifeWatch Holding Corporation, a Delaware corporation, who acknowledged the
execution of the foregoing “Office Lease” on behalf of said corporation.

 

WITNESS my hand and Notarial Seal this        
day of               ,
2006.

 

	
  

  	
   

  	
   

  	
  

  Patricia J. Walker             11-10-06

  
	
   

  	
   

  	
   

  	
  Notary
  Public

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (Printed
  Signature)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  OFFICIAL SEAL 

  PATRICIA J WALKER

  NOTARY PUBLIC - STATE OF ILLINOIS 

  MY COMMISSION EXPIRES: 10/31/09

  

 

My Commission
Expires: 10-31-09

 

My County of
Residence: LAKE

 

26

 

EXHIBIT A

 

SITE PLAN OF ORIGINAL
PREMISES

 

Exhibit A

Page 1 of 1

 

EXHIBIT A

 

SITE PLAN OF ORIGINAL
PREMISES

 

 

Suite 120 – 6,185 RSF

 

Exhibit A

Page 1 of 1

 

EXHIBIT A-1

 

SITE PLAN OF ADDITIONAL
SPACE

 

Exhibit A-1

Page 1 of 1

 

 

EXHIBIT A-1

 

SITE PLAN OF ADDITIONAL
SPACE

 

1st
Floor

 

 

Suite 150 – 1,353 RSF

Suite 140 – 1,695 RSF

Suite 100 – 11,772 RSF

 

7th Floor

 

 

Suite 700 – 29,303 RSF

 

Exhibit A-1

Page 1 of 1

 

EXHIBIT B

 

TENANT
IMPROVEMENTS

 

1.                                       Landlord’s
Obligations. Tenant has personally inspected the Leased Premises and
accepts the same “AS IS” without
representation or warranty by Landlord of any kind and with the understanding
that Landlord shall have no responsibility with respect thereto except to
construct and install within the Leased Premises, in a good and workmanlike
manner, the Original Premises Tenant Improvements and Additional Space Tenant
Improvements (collectively, the Original Premises Tenant Improvements and
Additional Space Tenant Improvements shall be known as the “Tenant Improvements”),
in accordance with this Exhibit B.

 

2.                                       Construction
Drawings, Cost Statement and Allowance.

 

(a)                                  Promptly
following the date hereof, Tenant will work with Landlord’s space planner to
develop a space plan for the Original Premises and Additional Space that is
reasonably acceptable to Landlord (the “Space Plan”). Tenant shall deliver the
Space Plan to Landlord within ten (10) days after the date of this Lease,
and Landlord shall compensate Tenant’s consultants for the preparation of the
Space Plan within thirty (30) days after Landlord’s receipt of an invoice for
same; provided, however, that such payment shall be applied toward the
Allowance (as defined herein). Within twenty (20) days after Landlord’s receipt
of the Space Plan, Landlord shall prepare and submit to Tenant a set of
construction drawings (the “CD’s”) covering all work to be performed by
Landlord in constructing the Tenant Improvements in accordance with the Space
Plan. Tenant shall have five (5) business days after receipt of the CD’s
in which to review the CD’s and to give Landlord written notice of Tenant’s
approval of the CD’s or its requested changes thereto. Tenant shall have no
right to request any changes to the CD’s that would materially alter the
exterior appearance or basic nature of the Building or the Building systems. If
Tenant fails to approve or request changes to the CD’s within five (5) business
days after its receipt thereof, then Tenant shall be deemed to have approved
the CD’s and the same shall thereupon be final. If Tenant requests any changes
to the CD’s, Landlord shall make those changes which are reasonably requested
by Tenant and shall within ten (10) days of its receipt of such request
submit the revised portion of the CD’s to Tenant. Tenant may not thereafter
disapprove the revised portions of the CD’s unless Landlord has unreasonably
failed to incorporate reasonable comments of Tenant and, subject to the
foregoing, the CD’s as modified by said revisions, shall be deemed to be final
upon the submission of said revisions to Tenant. Tenant shall at all times in
its review of the CD’s, and of any revisions thereto, act reasonably and in
good faith. Without limiting the foregoing, Tenant agrees to confirm Tenant’s
consent to the CD’s in writing within three (3) business days following
Landlord’s written request therefor. Following Tenant’s approval of the CD’s,
Landlord shall solicit competitive bids from at least three (3) subcontractors
for each major trade. Landlord and Tenant shall review the bids (including the
line items) jointly. Tenant hereby acknowledges and agrees that the timeframes
set forth herein may not apply to the Original Premises Tenant Improvements.
Instead, the parties shall use the timeframes specifically set forth on Exhibit B-1a
for construction of the Original Premises Tenant Improvements.

 

(b)                                 Promptly
following the selection of a subcontractor for each major trade, Landlord shall
deliver to Tenant a statement of the cost to construct the Tenant Improvements
(the “Cost Statement”). Tenant acknowledges and agrees that the Cost Statement
shall include (i) design fees, and (ii) a fee for overhead and profit
(which fee shall not exceed 6% of the Cost Statement) payable to the project’s
general contractor. Tenant acknowledges and agrees that such general contractor
may be comprised of a subsidiary, affiliate or employees of Landlord. Tenant
agrees to acknowledge the Cost Statement in writing within three (3) business
days following Landlord’s written request therefor.

 

(c)                                  Tenant
shall be responsible for the cost to construct and install the Tenant Improvements
only to the extent that the Cost Statement, taking into account any increases
or decreases resulting from any Change Orders (as hereinafter defined), exceeds
Two Million Five Hundred Fifteen Thousand Four Hundred and No/100 Dollars
($2,515,400.00) (the “Allowance”). If, following Tenant’s approval (or deemed
approval) of the CD’s, the Cost Statement shows that the cost to construct and
install the Tenant Improvements will exceed the Allowance, Tenant shall deliver
to Landlord, within thirty (30) days following Landlord’s written request, an
amount equal to one-half(1/2) of such excess. Following Substantial Completion
of the Tenant Improvements, Tenant shall pay to Landlord the remaining
difference between the Cost Statement (taking into account any increases or
decreases resulting from any Change Orders) and the Allowance within thirty
(30) days of Landlord’s request therefor. Tenant’s failure to deliver the
payments required in this paragraph shall entitle Landlord to stop the
construction and installation of the Original Premises Tenant Improvements or
Additional Space Tenant Improvements, as applicable, until such payment is
received, and any resulting delay shall constitute a Tenant Delay (as
hereinafter defined) hereunder. In addition, all delinquent payments shall
accrue interest at 7% per annum. If the Allowance exceeds the Cost Statement
(taking into account any increases or decreases resulting from any Change
Orders), the remaining amount of the Allowance shall be either (i) used by
Tenant for hard

 

Exhibit B

Page 1 of 2

 

and/or soft costs for the
Leased Premises (including but not limited to, furniture, fixtures and
equipment, date and voice cabling, moving costs, interior decorating and
third-party construction advisors) or, (ii) at Tenant’s option, Landlord
shall pay Tenant this portion of the Allowance as a lump sum payment or Rent
credit. Notwithstanding the foregoing, Tenant must use up to One Million Four
Hundred Fifteen Thousand Four Hundred and 00/100 Dollars ($1,415,400.00) of the
Allowance toward the hard costs to construct and install the Tenant
Improvements (as set forth on the Cost Statement). Any portion of the Allowance
not used on or before the first anniversary of the Additional Space
Commencement Date shall be forfeited.

 

3.                                       Schedule and
Early Occupancy. The schedule for the construction and installation of
the Original Premises Tenant Improvements (as set forth on Exhibit B-1a)
and Additional Space Tenant Improvements (as set forth on Exhibit B-1b)
(collectively, the “Schedule”) is attached hereto as Exhibit B-1a and Exhibit B-1b, respectively.
Landlord shall notify Tenant of any material changes to the Schedule. Tenant
agrees to coordinate with Landlord regarding the installation of Tenant’s phone
and data wiring and any other trade related fixtures that will need to be
installed in the Leased Premises prior to Substantial Completion. In addition,
if and to the extent permitted by applicable laws, rules and ordinances,
Tenant shall have the right to enter the Leased Premises prior to the scheduled
date for Substantial Completion (as may be modified from time to time) in order
to install fixtures and otherwise prepare the Leased Premises for occupancy,
which right shall expressly exclude making any structural modifications. During
any entry prior to the applicable Commencement Date (a) Tenant shall
comply with all terms and conditions of this Lease other than the obligation to
pay rent, (b) Tenant shall not interfere with Landlord’s completion of the
Original Premises Tenant Improvements or Additional Space Tenant Improvements, (c) Tenant
shall cause its personnel and contractors to comply with the terms and
conditions of Landlord’s rules of conduct (which Landlord agrees to
furnish to Tenant upon request), and (d) Tenant shall not begin operation
of its business. Tenant acknowledges that Tenant shall be responsible for
obtaining all applicable permits and inspections relating to any such entry by
Tenant.

 

4.                                       Change
Orders. Tenant shall have the right to request changes to the CD’s at any
time following the date hereof by way of written change order (each, a “Change
Order”, and collectively, “Change Orders”). Provided such Change Order is
reasonably acceptable to Landlord, Landlord shall within five (5) days
after receipt of such Change Order prepare and submit to Tenant a memorandum
setting forth the impact on cost and schedule resulting from said Change
Order (the “Change Order Memorandum of Agreement”). Tenant shall, within three (3) business
days following Tenant’s receipt of the Change Order Memorandum of Agreement,
either (a) execute and return the Change Order Memorandum of Agreement to
Landlord, or (b) retract its request for the Change Order. At Landlord’s
option, Tenant shall pay to Landlord (or Landlord’s designee), within thirty
(30) days following Landlord’s request, any increase in the cost to construct
the Original Premises Tenant Improvements or Additional Space Tenant
Improvements, as applicable, resulting from the Change Order, as set forth in
the Change Order Memorandum of Agreement. Landlord shall not be obligated to
commence any work set forth in a Change Order until such time as Tenant has
delivered to Landlord the Change Order Memorandum of Agreement executed by Tenant
and, if applicable, Tenant has paid Landlord in full for said Change Order.

 

5.                                       Tenant
Delay. Notwithstanding anything to the contrary contained in the Lease, if
Substantial Completion of the Original Premises Tenant Improvements or
Additional Space Tenant Improvements, is delayed beyond the Original Premises
Commencement Date or Additional Space Commencement Date, as applicable, as a
result of Tenant Delay (as hereinafter defined), then, for purposes of
determining the applicable Commencement Date, Substantial Completion of the
applicable Tenant Improvements shall be deemed to have occurred on the date
that Substantial Completion of such Tenant Improvements would have occurred but
for such Tenant Delay. Without limiting the foregoing, Landlord shall use commercially
reasonable speed and diligence to Substantially Complete the (i) Original
Premises Tenant Improvements on or before the Original Premises Commencement
Date, and (ii) Additional Space Tenant Improvements on or before the
Additional Space Commencement Date.

 

6.                                       Letter
of Understanding. Promptly following the Original Premises Commencement
Date and Additional Space Commencement Date, Tenant shall execute the
applicable Letter of Understanding in substantially the form attached hereto as
Exhibit C and made a
part hereof, acknowledging (a) the applicable Commencement Date, and (b) except
for any punchlist items, that Tenant has accepted the Original Premises or
Additional Space, as applicable. If Tenant takes possession of and occupies the
Original Premises or Additional Space, Tenant shall be deemed to have accepted
the Original Premises or Additional Space and that the condition of the
Original Premises, the Additional Space and the Building was at the time
satisfactory and in conformity with the provisions of this Lease in all
respects, subject to any punchlist items.

 

7.                                       Definitions.
For purposes of this Lease (a) “Substantial Completion” (or any
grammatical variation thereof) shall mean completion of construction of the
Original Premises Tenant Improvements or Additional Space Tenant Improvements,
as applicable, subject only to punchlist items to

 

Exhibit B

Page 2 of 2

 

be identified by Landlord
and Tenant in a joint inspection of the Original Premises and Additional Space
prior to Tenant’s occupancy, and (b) “Tenant Delay” shall mean any delay
in the completion of the Original Premises Tenant Improvements or Additional
Space Tenant Improvements attributable to Tenant, including, without limitation
(i) Tenant’s failure to meet any time deadlines specified herein, (ii) Change
Orders, (iii) the performance of any other work in the Original Premises
or Additional Space by any person, firm or corporation employed by or on behalf
of Tenant, or any failure to complete or delay in completion of such work, (iv) Landlord’s
inability to obtain an occupancy permit for the Original Premises or Additional
Space because of the need for completion of all or a portion of improvements
being installed in the Original Premises or Additional Space directly by
Tenant, and (v) any other act or omission of Tenant.

 

8.                                       Warranty.
Landlord hereby agrees to warrant the Tenant Improvements for a period of
twelve (12) months from the date of Substantial Completion of the Original
Premises Tenant Improvements or Additional Space Tenant Improvements, as
applicable (the “Warranty Period”). After the expiration of the Warranty
Period, Landlord shall enforce for the benefit of Tenant all warranties from
subcontractors and material suppliers for materials, workmanship, fixtures or
equipment installed in the Leased Premises in connection with the Tenant
Improvements which warranties continue in effect after the expiration of the
Warranty Period. All other warranties (expressed, implied or oral), including
any implied warranty of merchantability, implied warranty of workmanship and/or
implied warranty of fitness for a particular purpose, are excluded.

 

Exhibit B

Page 3 of 2

 

EXHIBIT B-1a

 

ORIGINAL
PREMISES SCHEDULE

 

Exhibit B-1a

Page 1 of 5

 

	
  DUKE
  CONSTRUCTION

  Gerg Garland

  ph: 847-232-5501

  	
   

  	
  PRELIMINARY SCHEDULE Exhibit B-1a

  LIFEWATCH

  OIC #2, Rosemont, IL

  	
   

  	
  Architect: TBO

  xxxxxxxxxx

  ph: xxx-xxx-xxxx

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  October 2006

  	
   

  	
  November 2006

  	
   

  	
  December 2006

  	
   

  	
  January

  	
   

  
	
  ID

  	
   

  	
  Task
  Name

  	
   

  	
  Duration

  	
   

  	
  Start

  	
   

  	
  Finish

  	
   

  	
  9/17

  	
  9/24

  	
  10/1

  	
  10/6

  	
  10/15

  	
  10/22

  	
  10/29

  	
  11/5

  	
  11/12

  	
  11/19

  	
  11/26

  	
  12/3

  	
  12/17

  	
  12/24

  	
  12/31

  
	
  1

  	
   

  	
  Reconstruction
  / Lease Execution Date

  	
   

  	
  27 days

  	
   

  	
  Mon 9/25/06

  	
   

  	
  Tue 10/31/06

  	
   

  	
  

  
	
  6

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7

  	
   

  	
  Bidding &
  Budgeting (Assign FA & SPRINK)

  	
   

  	
  15 days?

  	
   

  	
  Fri 10/20/06

  	
   

  	
  Thu 11/9/06

  	
   

  
	
  8

  	
   

  	
  Indemnification
  for Phase 1 Area

  	
   

  	
  0 days

  	
   

  	
  Fri 10/20/06

  	
   

  	
  Fri 10/20/06

  	
   

  
	
  9

  	
   

  	
  Phase
  1 Construction Drawings

  	
   

  	
  7 days?

  	
   

  	
  Mon 10/23/06

  	
   

  	
  Tue 10/31/06

  	
   

  
	
  10

  	
   

  	
  Tenant
  Review Phase 1 Drawings

  	
   

  	
  2 days

  	
   

  	
  Wed 11/1/06

  	
   

  	
  Thu 11/2/06

  	
   

  
	
  11

  	
   

  	
  Bid
  Phase 1 Area

  	
   

  	
  6 days

  	
   

  	
  Wed 11/1/06

  	
   

  	
  Wed 11/8/06

  	
   

  
	
  12

  	
   

  	
  Tenant
  Review Cost Proposal Phase 1

  	
   

  	
  1 day

  	
   

  	
  Thu 11/9/06

  	
   

  	
  Thu 11/9/06

  	
   

  
	
  13

  	
   

  	
  Final Budget Approval / Award Phase 1

  	
   

  	
  0 days

  	
   

  	
  Thu 11/9/06

  	
   

  	
  Thu 11/9/06

  	
   

  
	
  14

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15

  	
   

  	
  Construction
  Documents

  	
   

  	
  7 days?

  	
   

  	
  Fri 11/3/06

  	
   

  	
  Mon 11/13/06

  	
   

  
	
  16

  	
   

  	
  Architect
  produce E-Backgrounds Phase 1

  	
   

  	
  1 day?

  	
   

  	
  Fri 11/3/06

  	
   

  	
  Fri 11/3/06

  	
   

  
	
  17

  	
   

  	
  Release
  Design Build Contractors for Permit Phase 1

  	
   

  	
  1 day

  	
   

  	
  Thu 11/9/06

  	
   

  	
  Thu 11/9/06

  	
   

  
	
  18

  	
   

  	
  Finalize
  and Assemble All Permit Drawings Phase 1

  	
   

  	
  1 day

  	
   

  	
  Fri 11/10/06

  	
   

  	
  Fri 11/10/06

  	
   

  
	
  19

  	
   

  	
  Check Set Meeting - Final Finishes - Final Approval Phase 1

  	
   

  	
  1 day

  	
   

  	
  Mon 11/13/06

  	
   

  	
  Mon 11/13/06

  	
   

  
	
  20

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  21

  	
   

  	
  Permitting

  	
   

  	
  15 days

  	
   

  	
  Fri 11/10/06

  	
   

  	
  Tue 12/5/06

  	
   

  
	
  22

  	
   

  	
  Receive
  and Assemble all Permit Items Phase 1

  	
   

  	
  0 days

  	
   

  	
  Fri 11/10/06

  	
   

  	
  Fri 11/10/06

  	
   

  
	
  23

  	
   

  	
  Submit
  to Rosemont Phase 1

  	
   

  	
  0 days

  	
   

  	
  Fri 11/10/06

  	
   

  	
  Fri 11/10/06

  	
   

  
	
  24

  	
   

  	
  Anticipated
  review period = 3 wks Phase 1

  	
   

  	
  15 days

  	
   

  	
  Mon 11/13/06

  	
   

  	
  Tue 12/5/06

  	
   

  
	
  25

  	
   

  	
  Receive Building Permit Phase 1

  	
   

  	
  0 days

  	
   

  	
  Tue 12/5/06

  	
   

  	
  Tue 12/5/06

  	
   

  
	
  26

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  27

  	
   

  	
  Construction

  	
   

  	
  21 days

  	
   

  	
  Wed 11/29/06

  	
   

  	
  Fri 12/29/06

  	
   

  
	
  28

  	
   

  	
  LEVEL 1, (PHASE 1) 1st Turnover Area

  	
   

  	
  21 days

  	
   

  	
  Wed 11/29/06

  	
   

  	
  Fri 12/29/06

  	
   

  
	
  29

  	
   

  	
  Pre-Permit
  Activities

  	
   

  	
  5 days

  	
   

  	
  Wed 11/29/06

  	
   

  	
  Tue 12/5/06

  	
   

  
	
  30

  	
   

  	
  Mobilize
  with Permit

  	
   

  	
  0 days

  	
   

  	
  Tue 12/5/06

  	
   

  	
  Tue 12/5/06

  	
   

  
	
  31

  	
   

  	
  Construction
  Duration anticipated - 3.0 weeks Post Permit

  	
   

  	
  15 days

  	
   

  	
  Wed 12/6/06

  	
   

  	
  Thu 12/28/06

  	
   

  
	
  32

  	
   

  	
  Tenant
  Vendors Work

  	
   

  	
  10 days

  	
   

  	
  Wed 12/13/06

  	
   

  	
  Thu 12/28/06

  	
   

  
	
  33

  	
   

  	
  Clean-up
  and Punchlist

  	
   

  	
  1 day

  	
   

  	
  Fri 12/29/06

  	
   

  	
  Fri 12/29/06

  	
   

  
	
  34

  	
   

  	
  Substantial Completion Inspection

  	
   

  	
  0 days

  	
   

  	
  Fri 12/29/06

  	
   

  	
  Fri 12/29/06

  	
   

  
	
  35

  	
   

  	
  Tenant begins to occupy / night move in P.M.

  	
   

  	
  0 days

  	
   

  	
  Fri 12/29/06

  	
   

  	
  Fri 12/29/06

  	
   

  
	
  36

  	
   

  	
  Final
  Occupancy Inspection (post Tenant Move-In)

  	
   

  	
  0 days

  	
   

  	
  Fri 12/29/06

  	
   

  	
  Fri 12/29/06

  	
   

  
	 
	
  Project: LIFEWATCH

  Date: 9-27-06

  	
    Task

  	
  

  	
    Progress

  	
  

  	
    Summary

  	
  

  	
  External Tasks

  	
  

  	
  Deadline

  
	 
	
    Split

  	
   

  	
    Milestone

  	
  

  	
    Project Summary

  	
  

  	
  External Milestone

  	
  

  	
   

  
	 
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	 
	
  OIC002- Life Watch
  Prelim. Scned. EXHIBIT B-1a.mpp

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
																																													

 

1

 

EXHIBIT B-lB

 

ADDITIONAL
SPACE SCHEDULE

 

Exhibit B-1

Page 2 of 5

 

	
  DUKE
  CONSTRUCTION

  Gerg Garland

  ph: 847-232-5501

  	
   

  	
  PRELIMINARY SCHEDULE Exhibit B-1a

  LIFEWATCH

  OIC #2, Rosemont, IL

  	
   

  	
  Architect: TBD

  xxxxxxxxxx

  ph: xxx-xxx-xxxx

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2006

  	
   

  	
  October

  2006

  	
   

  	
  November

  2006

  	
   

  	
  December

  2006

  	
   

  	
  January

  2007

  	
   

  	
  February

  2007

  	
   

  	
  March

  2007

  	
   

  	
  April

  2007

  	
  M

  
	
  ID

  	
   

  	
  Task
  Name

  	
   

  	
  Duration

  	
   

  	
  Start

  	
   

  	
  Finish

  	
   

  	
  9/17 9/24 10/1 10/8 0/1 0/2 0/2 0/2 11/5 1/1 1/1 1/2 12/3 2/1 2/1 2/2 2/3 1/7 1/14 1/21 1/26 2/4 2/11 2/8 2/1 2/25 3/4 3/11 3/18 3/254/1 4/8 4/15 4/22 4/29

  
	
  1

  	
   

  	
  Preconstruction
  / Lease Execution Date

  	
   

  	
  27 days

  	
   

  	
  Mon 9/25/06

  	
   

  	
  Tue 10/31/06

  	
   

  	
  

  
	
  6

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7

  	
   

  	
  Bidding &
  Budgeting (Assign FA & SPRINK)

  	
   

  	
  36 days

  	
   

  	
  Tue 10/31/06

  	
   

  	
  Thu 12/21/06

  	
   

  
	
  8

  	
   

  	
  Space plan approved and
  Completed Prior to Lease Signing

  	
   

  	
  0 days

  	
   

  	
  Tue 10/31/06

  	
   

  	
  Tue 10/31/06

  	
   

  
	
  9

  	
   

  	
  Architect Develop into
  Construction Documents Phase 2

  	
   

  	
  20 days

  	
   

  	
  Tue 10/31/06

  	
   

  	
  Wed 11/29/06

  	
   

  
	
  10

  	
   

  	
  Tenant to review
  Construction Documents Phase 2

  	
   

  	
  5 days

  	
   

  	
  Thu 11/30/06

  	
   

  	
  Wed 12/6/06

  	
   

  
	
  11

  	
   

  	
  Bid All Trades Phase 2

  	
   

  	
  8 days

  	
   

  	
  Thu 12/7/06

  	
   

  	
  Mon 12/18/06

  	
   

  
	
  12

  	
   

  	
  Tenant Review of Cost
  Proposal Phase 2

  	
   

  	
  3 days

  	
   

  	
  Tue 12/19/06

  	
   

  	
  Thu 12/21/06

  	
   

  
	
  13

  	
   

  	
  Final Budget forwarded
  to Landlord/Make Awards

  	
   

  	
  0 days

  	
   

  	
  Thu 12/21/06

  	
   

  	
  Thu 12/21/06

  	
   

  
	
  14

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15

  	
   

  	
  Construction
  Documents

  	
   

  	
  24 days

  	
   

  	
  Thu 11/30/06

  	
   

  	
  Mon 1/8/07

  	
   

  
	
  16

  	
   

  	
  Architect produce
  E-Background Documents Phase 2

  	
   

  	
  4 days

  	
   

  	
  Thu 11/30/06

  	
   

  	
  Tue 12/5/06

  	
   

  
	
  17

  	
   

  	
  Release D.B. Contractors
  for Permit Drwgs Phase 2

  	
   

  	
  7 days

  	
   

  	
  Fri 12/22/06

  	
   

  	
  Fri 1/5/07

  	
   

  
	
  18

  	
   

  	
  Architect Finalize
  Documents with D.B’s for permit Phase 2

  	
   

  	
  10 days

  	
   

  	
  Wed 12/6/06

  	
   

  	
  Tue 12/19/06

  	
   

  
	
  19

  	
   

  	
  Receive, Assemble ALL
  Permit Drwgs Phase 2

  	
   

  	
  0 days

  	
   

  	
  Fri 1/5/07

  	
   

  	
  Fri 1/5/07

  	
   

  
	
  20

  	
   

  	
  Check-Set
  Mtg - Finishes Final-Final Approval Phase 2

  	
   

  	
  1 day

  	
   

  	
  Mon 1/8/07

  	
   

  	
  Mon 1/8/07

  	
   

  
	
  21

  	
   

  	
  .

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  22

  	
   

  	
  Permitting

  	
   

  	
  15 days

  	
   

  	
  Fri 1/5/07

  	
   

  	
  Fri 1/26/07

  	
   

  
	
  23

  	
   

  	
  Receive and Assemble all
  Permit Items Phase 2

  	
   

  	
  0 days

  	
   

  	
  Fri 1/5/07

  	
   

  	
  Fri 1/5/07

  	
   

  
	
  24

  	
   

  	
  Submit to Rosemont Phase
  2

  	
   

  	
  0 days

  	
   

  	
  Fri 1/5/07

  	
   

  	
  Fri 1/5/07

  	
   

  
	
  25

  	
   

  	
  Anticipated review
  period = 3 wks Phase 2

  	
   

  	
  15 days

  	
   

  	
  Mon 1/8/07

  	
   

  	
  Fri 1/26/07

  	
   

  
	
  26

  	
   

  	
  Receive
  Building Permit Phase 2

  	
   

  	
  0 days

  	
   

  	
  Fri 1/26/07

  	
   

  	
  Fri 1/26/07

  	
   

  
	
  27

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  28

  	
   

  	
  Construction

  	
   

  	
  61 days

  	
   

  	
  Wed 1/24/07

  	
   

  	
  Wed 4/18/07

  	
   

  
	
  29

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  30

  	
   

  	
  LEVEL
  1 & LEVEL 7, (PHASE 2)
  2nd Turnover Area

  	
   

  	
  61 days

  	
   

  	
  Wed 1/24/07

  	
   

  	
  Wed 4/18/07

  	
   

  
	
  31

  	
   

  	
  Pre-Permit Activities

  	
   

  	
  3 days

  	
   

  	
  Wed 1/24/07

  	
   

  	
  Fri 1/26/07

  	
   

  
	
  32

  	
   

  	
  Mobilize with Permit

  	
   

  	
  0 days

  	
   

  	
  Fri 1/26/07

  	
   

  	
  Fri 1/26/07

  	
   

  
	
  33

  	
   

  	
  Construction Duration
  anticipated -11.0 weeks Post Permit

  	
   

  	
  55 days

  	
   

  	
  Mon 1/29/07

  	
   

  	
  Fri 4/13/07

  	
   

  
	
  34

  	
   

  	
  Tenant Vendors Work

  	
   

  	
  30 days

  	
   

  	
  Mon 3/5/07

  	
   

  	
  Fri 4/13/07

  	
   

  
	
  35

  	
   

  	
  Clean-up and Punchlist

  	
   

  	
  3 days

  	
   

  	
  Mon 4/16/07

  	
   

  	
  Wed 4/18/07

  	
   

  
	
  36

  	
   

  	
  Substantial
  Completion Inspection

  	
   

  	
  0 days

  	
   

  	
  Wed 4/18/07

  	
   

  	
  Wed 4/18/07

  	
   

  
	
  37

  	
   

  	
  Tenant
  begins to occupy / night move in P.M.

  	
   

  	
  0 days

  	
   

  	
  Wed 4/18/07

  	
   

  	
  Wed 4/18/07

  	
   

  
	
  38

  	
   

  	
  Final Occupancy
  Inspection (post Tenant Move-in)

  	
   

  	
  0 days

  	
   

  	
  Wed 4/18/07

  	
   

  	
  Wed 4/18/07

  	
   

  
																													

 

	
  Project: LIFEWATCH

  Date: 9-27-06

  	
    Task

  	
  

  	
    Progress

  	
  

  	
    Summary

  	
  

  	
    External Tasks

  	
  

  	
  Deadline

  
	
    Split

  	
  

  	
    Milestone

  	
  

  	
    Project Summary

  	
  

  	
    External Milestone

  	
  

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OIC002- Life Watch
  Prelim. Scned. EXHIBIT B-1a.mpp

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Page 1

 

 

EXHIBIT C

 

LETTER OF
UNDERSTANDING FOR ORIGINAL PREMISES

 

OIC Midwest LLC

c/o Duke Realty Corporation

Attention: Vice President, Property Management

6133 N. River Road, Suite 200

Rosemont, Illinois 60018

 

RE:                              Lease
Agreement between OIC Midwest LLC, a Delaware limited liability company (“Landlord”)
and LifeWatch Holding Corporation, a Delaware corporation (“Tenant”) for the
Original Premises located at 10255 Higgins Road, Suite 700, Rosemont,
Illinois 60018 (the “Original Premises”), dated
                 ,
as amended
                     
(the “Lease”).

 

Dear
                                :

 

The undersigned, on
behalf of Tenant, certifies to Landlord as follows:

 

1.                                       The
Original Premises Commencement Date under the Lease is
                                             .

 

2.                                       The
rent commencement date for the Original Premises is
                                           .

 

3.                                       The
expiration date of the Lease is
                                          .

 

4.                                       The
Lease (including amendments or guaranty, if any) is the entire agreement
between Landlord and Tenant as to the leasing of the Original Premises and is
in full Force and effect.

 

5.                                       The
Landlord has substantially completed the Original Premises Tenant Improvements
designated as Landlord’s obligation under the Lease (excluding punchlist items
as agreed upon by Landlord and Tenant), if any, and Tenant has accepted the
Original Premises as of the Original Premises Commencement Date, subject only
to completion of the punchlist items.

 

6.                                       To
the best of the undersigned’s knowledge, there are no uncured events of default
by either Tenant or Landlord under the Lease.

 

IN WITNESS WHEREOF, the
undersigned has caused this Letter of Understanding to be executed this
            day of
                      ,
2006.

 

	
   

  	
   

  	
  LIFEWATCH HOLDING
  CORPORATION, 

  
	
   

  	
   

  	
  a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Frederick J.
  Mindermann

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Printed Name:

  	
  Frederick J. Mindermann

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
  President &
  CEO

  
						

 

Exhibit C

Page 1 of 1

 

EXHIBIT C-1

 

LETTER OF
UNDERSTANDING FOR ADDITIONAL PREMISES

 

OIC Midwest LLC

c/o Duke Realty Corporation

Attention: Vice President, Property Management

6133 N. River Road, Suite 200

Rosemont, Illinois 60018

 

RE:                              Lease
Agreement between OIC Midwest LLC, a Delaware limited liability company (“Landlord”)
and LifeWatch Holding Corporation, a Delaware corporation (“Tenant”) for the
Additional Premises located at 10255 Higgins Road, Suites 100, 120, 140 and
150, Rosemont, Illinois 60018 (the “Additional Premises”), dated
                 ,
as amended
                     
(the “Lease”).

 

Dear                                           :

 

The undersigned, on
behalf of Tenant, certifies to Landlord as follows:

 

1.                                       The
Additional Premises Commencement Date under the Lease
is                                                 .

 

2.                                       The
rent commencement date for the Additional Premises
is                                                 .

 

3.                                       The
expiration date of the Lease
is                                                 .

 

4.                                       The
Lease (including amendments or guaranty, if any) is the entire agreement
between Landlord and Tenant as to the leasing of the Additional Premises and is
in full force and effect.

 

5.                                       The
Landlord has substantially completed the Additional Space Tenant Improvements
designated as Landlord’s obligation under the Lease (excluding punchlist items
as agreed upon by Landlord and Tenant), if any, and Tenant has accepted the
Additional Premises as of the Additional Premises Commencement Date, subject
only to completion of the punchlist items.

 

6.                                       To
the best of the undersigned’s knowledge, there are no uncured events of default
by either Tenant or Landlord under the Lease.

 

IN WITNESS WHEREOF, the
undersigned has caused this Letter of Understanding to be executed this
              day
of
                              ,
2006.

 

	
   

  	
   

  	
  LIFEWATCH HOLDING
  CORPORATION, 

  
	
   

  	
   

  	
  a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Frederick J.
  Mindermann

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Printed Name:

  	
  Frederick J. Mindermann

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
  President &
  CEO

  
						

 

Exhibit C-1

Page 1 of 1

 

EXHIBIT D

 

IRREVOCABLE
LETTER OF CREDIT

 

OIC Midwest LLC

c/o Duke Realty Limited Partnership

3950 Shackleford Road, Suite 300

Duluth, GA 30096-8269

Attention: General Counsel

 

OIC Midwest LLC

c/o Duke Realty Limited Partnership

600 East 96th Street, Suite 100

Indianapolis, Indiana 46240

Attention: Chief Financial Officer

 

Ladies and Gentlemen:

 

At the request and on the
instructions of our customer,
                                     
(the “Applicant”), we hereby establish this Irrevocable Letter of Credit No.                                 
(the “Letter of Credit”) in the amount of
$                                
in your favor. This Letter of Credit is effective immediately and expires on
                                        .
 This Letter of Credit will be
automatically renewed (without amendment) for additional one (1) year
periods unless we provide at least sixty (60) days’ notice to you (at both
addresses set forth above) by certified mail or national courier service that
we elect not to renew this Letter of Credit for such additional period. No
extension will be granted, however, which extends the maturity date of this
Letter of Credit beyond
                                           
[usually 10 years, but at a minimum, 60 days
after the end of the lease term].

 

Funds under this Letter
of Credit will be made available to you upon receipt by us of (1) a sight
draft in the form of Annex A attached hereto executed by you and (2) a
drawing certificate in the form of Annex B attached hereto executed by you.

 

Presentation of any such
sight draft and drawing certificate shall be made at our office located at
[PRESENTATION OFFICE ADDRESS], Attention:
                                         ,
telecopy number (        )
                                ,
during our banking hours of
              a.m.,
Eastern Time to           p.m.,
Eastern Time. Presentation hereunder may also be made in the form of facsimile
transmission of the appropriate sight draft and drawing certificate to the
preceding address and telecopy number.

 

If a sight draft and
drawing certificate are presented hereunder by sight or by facsimile
transmission as permitted hereunder, by 11:00 a.m., Eastern Time, payment
shall be made to you, or to your designee, of the amount specified, in
immediately available funds, not later than 2:00 p.m., Eastern Time, on
the same day. If a sight draft and a drawing certificate are presented by you
hereunder after the time specified above, payment shall be made to you, or to
your designee, of the amount specified, in immediately available funds, not
later than 2:00 p.m., Eastern Time, on the next business day. If a demand for
payment made by you hereunder does not conform to the terms and conditions of
this Letter of Credit, we shall give you notice within one (1) business
day after our receipt of the non-conforming demand, stating the reasons of such
non-conformity and that we will upon your instructions hold any documents at
your disposal or return the same to you. Upon being notified that the demand
for payment was not effected in conformity with this Letter of Credit, you may
correct any such non-conforming demand for payment to the extent that you are
entitled to do so and within the validity of this Letter of Credit.

 

Partial drawings are
allowed under this Letter of Credit. Any drawing under this Letter of Credit
will be paid from our general funds and not directly or indirectly from funds
or collateral deposited with or for our account by the Applicant, or pledged
with or for our account by the Applicant.

 

This Letter of Credit is
transferable and notwithstanding Article 48 of the Uniform Customs (as
defined below), this Letter of Credit may be successively transferred. Transfer
of this Letter of Credit to a transferee shall be effected only upon the
presentation to us of the original of this Letter of Credit accompanied by a
certificate in the form of Annex C. Upon such presentation we shall transfer
the same to your transferee or, if so requested by your transferee, issue a
letter of credit to your transferee with provisions consistent with, and
substantially the same as, this Letter of Credit. Such transfer of this Letter
of Credit shall be at no cost to you.

 

Exhibit D

Page 1 of 5

 

This Letter of Credit
shall be subject to the Uniform Customs and Practice for Documentary Credits
(1993 Revision), International Chamber of Commerce Publication No.500 (the “Uniform
Customs”), which is incorporated into the text of this Letter of Credit by this
reference. This Letter of Credit shall be deemed to be issued under the laws of
the State of Indiana and shall be governed by and construed in accordance with
the law of the State of Indiana with respect to matters not governed by the
Uniform Customs and matters on which the Uniform Customs and the laws of the
State of Indiana are inconsistent except to the extent such are inconsistent
with the provisions set forth above.

 

 

	
   

  	
  Very truly yours,

  
	
   

  	
  [ISSUING BANK]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
				

 

Exhibit D

Page 2 of 5

 

ANNEX
A

 

SIGHT
DRAFT

 

[Date]

 

At
Sight

 

Pay to the order of OIC
Midwest LLC the sum of
                                                                    
and           /100 Dollars
($                     )
drawn on [ISSUING BANK], as issuer of its Irrevocable Letter of Credit No.                                       dated
                         ,
20     .

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
  OIC MIDWEST LLC, a
  Delaware limited liability company

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:  

  	
  MIDWEST REALTY HOLDINGS
  LLC, a Delaware limited liability company, its sole member

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:  

  	
  Duke Realty Limited
  Partnership, an Indiana limited partnership, its Managing Member

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:  

  	
  Duke Realty
  Corporation, d/b/a Duke Realty of Indiana Corporation, its general partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  
											

 

Exhibit D

Page 3 of 5

 

ANNEX
B

 

DRAWING
CERTIFICATE

 

[Date]

 

[ISSUING BANK]

[ADDRESS]

Attention:
                                            

 

Re:                               Irrevocable
Letter of Credit No. (the “Letter of Credit”) For the Account of
                       
(the “Applicant”)

 

Ladies and Gentlemen:

 

The undersigned, OIC
MIDWEST LLC (the “Beneficiary”) hereby certifies that:

 

1)                                      The
Beneficiary is the lessor under that
certain               
Lease dated
                   ,20        ,
as amended, between the Beneficiary, as lessor, and the Applicant, as lessee
(the “Lease”).

 

2)                                      The
Beneficiary is entitled to payment under the Letter of Credit in the amount
of 
$             
by reason of the following condition (mark only one):

 

                                                The
Applicant has defaulted under the Lease.

 

                                                The
expiration date of the Letter of Credit is less than [30] days from the date of
this Certificate.

 

3)                                      Please
direct payment under the Letter of Credit by wire transfer to:

 

[Depository Bank] 

[Depository Bank Address]

ABA No.                               

Acct. No.                               

 

IN WITNESS WHEREOF, the
undersigned has duly executed and delivered this Certificate.

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
  OIC MIDWEST LLC, a
  Delaware limited liability company

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:  

  	
  MIDWEST REALTY HOLDINGS
  LLC, a Delaware limited liability company, its sole member

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:  

  	
  Duke Realty Limited
  Partnership, an Indiana limited partnership, its Managing Member

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:  

  	
  Duke Realty
  Corporation, d/b/a Duke Realty of Indiana Corporation, its general partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  
											

 

Exhibit D

Page 4 of 5

 

ANNEX C

 

NOTICE OF
TRANSFER

 

[Date]

 

[ISSUING BANK]

[ADDRESS]

 

Attention:
                           

 

Re:                               Irrevocable
Letter of Credit No.                                       
(the “Letter of Credit”) For the
Account of                                                     

 

Ladies and Gentlemen:

 

You are hereby directed
to transfer and endorse the Letter of Credit to
                                 
(the “Transferee”) or to issue in accordance with the terms of the Letter of
Credit, a new letter of credit to the                                    
Transferee having the same terms as the Letter of Credit.

 

We submit herewith for
endorsement or cancellation the original of the Letter of Credit.

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
                                                  Very truly yours,

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  OIC MIDWEST LLC, a
  Delaware limited liability company

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:  

  	
  MIDWEST REALTY HOLDINGS
  LLC, a Delaware limited liability company, its sole member

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:  

  	
  Duke Realty Limited
  Partnership, an Indiana limited partnership, its Managing Member

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:  

  	
  Duke Realty
  Corporation, d/b/a Duke Realty of Indiana Corporation, its general partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  
											

 

Exhibit D

Page 5 of 5

 

EXHIBIT E

 

RULES AND
REGULATIONS

 

1.                                       The
sidewalks, entrances, passages, courts, elevators, vestibules, stairways,
corridors or halls shall not be obstructed or used for any purpose other than
ingress and egress. Landlord shall control the Common Areas.

 

2.                                       No
awnings or other projections shall be attached to the outside walls of the
Building. No curtains, blinds, shades or screens shall be attached to or hung
in, or used in connection with, any window or door of the Leased Premises other
than Landlord standard window coverings without Landlord’s prior written
approval. All electric ceiling fixtures hung in offices or spaces along the
perimeter of the Building must be fluorescent, of a quality, type, design and
tube color approved by Landlord. Neither the interior nor the exterior of any
windows shall be coated or otherwise sunscreened without written consent of
Landlord.

 

3.                                       No
sign, advertisement, notice or handbill shall be exhibited, distributed,
painted or affixed by any tenant on, about or from any part of the Leased
Premises, the Building or in the Common Areas including the parking area
without the prior written consent of Landlord. In the event of the violation of
the foregoing by any tenant, Landlord may remove or stop same without any
liability, and may charge the expense incurred in such removal or stopping to
tenant. The lobby directory will be provided exclusively for the display of the
name and location of tenants only, and Landlord reserves the right to exclude
any other names therefrom. Nothing may be placed on the exterior of corridor
walls or corridor doors other than Landlord’s standard lettering.

 

4.                                       The
sashes, sash doors, windows, and doors that reflect or admit light and air into
halls, passageways or other public places in the Building shall not be covered
or obstructed by tenant.

 

5.                                       The
sinks and toilets and other plumbing fixtures shall not be used for any purpose
other than those for which they were constructed, and no sweepings, rubbish,
rags, or other substances shall be thrown therein. All damages resulting from
any misuse of the fixtures shall be borne by the tenant who, or whose
subtenants, assignees or any of their servants, employees, agents, visitors or
licensees shall have caused the same.

 

6.                                       No
tenant shall mark, paint, drill into, or in any way deface any part of the
Leased Premises or the Building (except for nails for the display of artwork).
No boring, cutting or stringing of wires or laying of any floor coverings shall
be permitted, except with the prior written consent of the Landlord and as the
Landlord may direct. Landlord shall direct electricians as to where and how
telephone or data cabling are to be introduced. No boring or cutting for wires
or stringing of wires will be allowed without written consent of Landlord. The
location of telephones, call boxes and other office equipment affixed to the
Leased Premises shall be subject to the approval of Landlord.

 

7.                                       No
bicycles, vehicles, birds or animals of any kind (except seeing eye dogs) shall
be brought into or kept in or about the Leased Premises, and no cooking shall
be done or permitted by any tenant on the Leased Premises, except microwave
cooking, and the preparation of coffee, tea, hot chocolate and similar items
for tenants and their employees. No tenant shall cause or permit any unusual or
objectionable odors to be produced in or permeate from the Leased Premises.

 

8.                                       The
Leased Premises shall not be used for manufacturing or for the storage of
merchandise except as such storage may be incidental to the permitted use of
the Leased Premises. No tenant shall occupy or permit any portion of the Leased
Premises to be occupied as an office for the manufacture or sale of liquor,
narcotics, or tobacco in any form, or as a medical office, or as a barber or
manicure shop, or a dance, exercise or music studio, or any type of school or
daycare or copy, photographic or print shop or an employment bureau without the
express written consent of Landlord. The Leased Premises shall not be used for
lodging or sleeping or for any immoral or illegal purpose.

 

9.             No tenant shall make, or permit to be made any unseemly,
excessive or disturbing noises or disturb or interfere with occupants of this
or neighboring buildings or premises or those having business with them,
whether by the use of any musical instrument, radio, phonograph, unusual noise,
or in any other way. No tenant shall throw anything out of doors, windows or
down the passageways.

 

10.                                 No
tenant, subtenant or assignee nor any of its servants, employees, agents,
visitors or licensees, shall at any time bring or keep upon the Leased Premises
any flammable, combustible or explosive fluid, chemical or substance or
firearm.

 

Exhibit E

Page 1 of 3

11.                                 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 to existing locks or the
mechanism thereof. Each tenant must upon the termination of his tenancy,
restore to the Landlord all keys of doors, offices, and toilet rooms, either
furnished to, or otherwise procured by, such tenant and in the event of the
loss of keys so furnished, such tenant shall pay to the Landlord the cost of replacing
the same or of changing the lock or locks opened by such lost key if Landlord
shall deem it necessary to make such changes.

 

12.                                 No
tenant shall overload the floors of the Leased Premises. All damage to the
floor, structure or foundation of the Building due to improper positioning or
storage items or materials shall be repaired by Landlord at the sole cost and
expense of tenant, who shall reimburse Landlord immediately therefor upon
demand. All removals or the carrying in or out of any safes, freight,
furniture, or bulky matter of any description must take place during the hours
that Landlord shall reasonably determine from time to time. The moving of safes
or other fixtures or bulky matter of any kind must be done upon previous notice
to Landlord and under Landlord’s supervision, and the persons employed by any
tenant for such work must be acceptable to Landlord. Landlord reserves the
right to inspect all safes, freight or other bulky articles to be brought into
the Building and to exclude from the Building all safes, freight or other bulky
articles which violate any of these Rules and Regulations or the Lease of
which these Rules and Regulations are a part. The Landlord reserves the
right to prescribe the weight and position of all safes, which must be placed
upon supports approved by Landlord to distribute the weight.

 

13.                                 Landlord
shall have the right to prohibit any advertising by any tenant that, in
Landlord’s opinion tends to impair the reputation of the Building or its
desirability as an office location, and upon written notice from Landlord any
tenant shall refrain from or discontinue such advertising.

 

14.                                 The
business hours for the Building shall be 8 a.m. to 6 p.m. Monday
through Friday and 8 a.m. to 1 p.m. on Saturday, excluding legal
holidays. Landlord reserves the right to require all persons entering the
Building between the hours of 6:00 p.m. and 8:00 a.m. and at all
hours on Saturday, Sunday and legal holidays to register with Landlord’s
security personnel. Each tenant shall be responsible for all persons entering
the Building at tenant’s invitation, express or implied. Landlord shall in no
case be liable for damages for any error with regard to the admission to or
exclusion from the Building of any person. In case of an invasion, mob riot,
public excitement or other circumstances rendering such action advisable in
Landlord’s opinion, Landlord reserves the right without any abatement of rent
to require all persons to vacate the Building and to prevent access to the
Building during the continuance of the same for the safety of the tenants and
the protection of the Building and the property in the Building.

 

15.                                 No
tenant shall purchase janitorial or maintenance or other like services, from
any person or persons not approved by Landlord. Any persons employed by any
tenant to do janitorial work or other work in the Leased Premises shall, while
in the Building and outside of the Leased Premises, be subject to and under the
control and direction of Landlord (but not as an agent or servant of Landlord),
and tenant shall be responsible for all acts of such persons.

 

16.                                 Canvassing,
soliciting and peddling in the Building are prohibited, and each tenant shall
report and otherwise cooperate to prevent the same.

 

17.                                 All
office equipment of any electrical or mechanical nature shall be placed by
tenant in the Leased Premises in settings that will, to the maximum extent
possible, absorb or prevent any vibration, noise and annoyance.

 

18.                                 No
air-conditioning unit or other similar apparatus shall be installed or used by
any tenant without the written consent of Landlord.

 

19.                                 There
shall not be used in any space, or in the public halls of the Building, either
by any tenant or others, any hand trucks except those equipped with rubber
tires and rubber side guards.

 

20.                                 The
scheduling of tenant move-ins shall be before or after normal business hours
and on weekends, subject to the reasonable discretion of Landlord.

 

21.                                 The
Building is a smoke-free Building. Smoking is strictly prohibited within the
Building. Smoking shall only be allowed in areas designated as a smoking area
by Landlord. Tenant and its employees, representatives, contractors or invitees
shall not smoke within the Building or throw cigar or cigarette butts or other
substances or litter of any kind in or about the Building, except in
receptacles for that purpose. Landlord may, at its sole discretion, impose a
charge against monthly rent of $50.00 per violation by tenant or any of its
employees, representatives, contractors or invitees, of this smoking policy.

 

22.                                 Tenants
will insure that all doors are securely locked, and water faucets, electric
lights and electric machinery are turned off before leaving the Building.

 

Exhibit E

Page 2 of 3

 

23.                                 Parking
spaces associated with the Building are intended for the exclusive use of
passenger automobiles. Except for intermittent deliveries, no vehicles other
than passenger automobiles may be parked in a parking space without the express
written permission of Landlord. Tenant, its employees, customers, invitees and
guests shall, when using the parking facilities in and around the Building,
observe and obey all signs regarding fire lanes and no-parking and driving
speed zones and designated handicapped and visitor spaces, and when parking
always park between the designated lines. Landlord reserves the right to tow
away, at the expense of the owner, any vehicle which is improperly parked or
parked in a no-parking zone or in a designated handicapped area, and any vehicle
which is left in any parking lot in violation of the foregoing regulation. All
vehicles shall be parked at the sole risk of the owner, and Landlord assumes no
responsibility for any damage to or loss of vehicles except to the extent
arising out of the negligence or willful misconduct of Landlord, the managing
agent or any of their respective partners, directors, officers, agents or
employees.

 

24.                                 Tenant
shall be responsible for and cause the proper disposal of medical waste,
including hypodermic needles, created by its employees.

 

It is Landlord’s desire
to maintain in the Building and Common Areas the highest standard of dignity
and good taste consistent with comfort and convenience for tenants. Any action
or condition not meeting this high standard should be reported directly to
Landlord. The Landlord reserves the right to make such other and further rules and
regulations as in its judgment may from time to time be necessary for the
safety, care and cleanliness of the Building and Common Areas, and for the
preservation of good order therein.

 

Exhibit E

Page 3 of 3

 

EXHIBIT F

 

[Drawing
depicting Roof Area]

 

Exhibit F

Page 1 of 1

 

EXHIBIT F

 

[Drawing
depicting Roof Area]

 

 

Exhibit F

Page 1 of 1

 

EXHIBIT G

 

[Plans
and Specifications showing installation and the completed Dish Data
Sheet which follows]

 

DISH DATA
SHEET

 

SITE:                                                                                                                                                                                       

COMPANY
NAME:                                                                                                                                                               

COMPANY
ADDRESS:                                                                                                                                                     

 

PHONE:                                                                                                      
FAX:                                                               

TYPE OF
SERVICE:                                                                                  CALL
SIGNS:                                                 

MAKE OF EQUIPMENT:                                                                          DIMENSIONS:   

MODEL
NO.                                                                                                                               

SERIAL NO:
                                                                                                                                                     

FCC TYPE ACCEPTANCE
NO.:                                
TX:                                                          
RX:                         

TX
FREQUENCY:                                                                                                                             

POWER
OUTPUT:                                                                   
MODULATION
TYPE:                                                                 

RX
FREQUENCY:                                                                       
RX I.F. FREQUENCY:                                                          

CLASS OF P.A.
OPERATION (final
amplifier):                                                                                             

POWER
REQUIRED:                        
VAC:                
 AMPS Total Power
Consumption:               
watts

TX ANTENNA TYPE & MODEL
NO.:                                                 

RX ANTENNA TYPE & MODEL
NO.:                                                                                                                   

TYPE OF ISOLATOR :

TYPE OF SECOND HARMONIC
FILTER:
                  

 

PERSON OR SERVICE COMPANY
RESPONSIBLE FOR ITS OPERATION & MAINTENANCE:

NAME:                                                                            

ADDRESS:

 

24 HOUR PHONE
NO.:                                                              PAGER
NO.:                                                                  

 

1

 

EXHIBIT H

 

REFUSAL
SPACE

 

Exhibit H

Page 1 of 1

 

EXHIBIT H

 

REFUSAL
SPACE

 

8th
Floor

 

 

2nd
Floor

 

 

Exhibit H

Page 1 of 1

 

EXHIBIT I

 

TEMPORARY
SPACE

 

 

Exhibit I

Page 1 of 1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}]]