Document:

Exhibit
10.12

 

METASTORM

 

2008
CORPORATE INCENTIVE PLAN (CIP)

 

The 2008 Metastorm CIP (“Plan”)
is designed to reward selected members of the Company’s management team for
efforts that increase shareholder value.

 

PLAN YEAR AND CONDITIONS

 

The term of the Plan will be
effective through December 31, 2008 or until all payments contemplated
herein have been made, upon which the Plan will automatically expire unless
such term is extended by the Plan Administrators.  This Plan is not intended to be and does not constitute
an agreement of continued employment of the participant by the Company.

 

Each participant will be
eligible to receive cash compensation, the amount of which will be determined
using the criteria outlined in Exhibit A.  If such criteria include financial metrics,
such financial metrics must adhere to Generally Accepted Accounting Principals
(“GAAP”), as determined by the Chief Financial Officer of the Company.

 

ADMINISTRATION

 

The Plan will be
administered by the Chief Executive Officer and Chief Financial Officer with
oversight by the Compensation Committee of the Board of Directors.  These individuals will have the power to
interpret, change, terminate or amend the Plan, as well as to determine which
persons are eligible under the Plan.

 

PLAN DETAILS

 

Target Payout: 
Payouts under the Plan will be based upon achievement of the corporate
objectives outlined in Exhibit A.  The benefit paid under the Plan is based upon
a predetermined target (the “Target Amount” or “Target Payout”) for each
participant, details of which are included in Exhibit A.

 

Payout Date:  50%
of any amount(s) due under this CIP will be paid on January 31, 2009
(utilizing un-audited management financial statements), with the remaining 50%
to be paid upon completion and publication of Metastorm’s CY2008 audit.  If Metastorm has not completed its CY2008
audit by May 31, 2009, payout will occur on May 31st 2009
utilizing management un-audited financials, which must be signed-off and
attested to by the Chief Executive Officer and Chief Financial Officer of
Metastorm, Inc.

 

BENEFITS AFTER TERMINATION

 

Participant will be eligible
for pay-out under this CIP if participant was employed on December 31,
2008 but subsequently terminates employment after December 31, 2008 (for
any reason).

 

Upon termination of
employment prior to December 31, 2008, the following conditions apply:

 

1

 

i.                                          Resignation of Participant. 
Resignation of the Participant from the employ of the company prior to December 31,
2008, for any reason, will result in forfeiture of all benefits due under the
Plan.  Upon such notice of resignation,
the Participant’s participation in the Plan will have deemed to expire midnight
on the day preceding the resignation.

 

ii.                                       Termination upon Mutual Agreement.  The
Company and the Participant may, by mutual written agreement, terminate the
employment of the Participant at any time. 
Participant and the Plan Administrators will jointly determine payouts,
if any, upon termination by mutual agreement, as part of the Participants
overall termination package.

 

iii.                                    Termination upon Death or Disability.  In
the event (i) the Participant is Disabled (as defined below), or (ii) the
Participant’s employment is terminated due to death of the Participant, the
Company shall pay the Participant (or, in the event of the Participant’s death
or disability, his heirs, legatees and/or legal representatives) any amounts
which the Participant would have otherwise been entitled to receive under the
Plan (but the Participant shall not be entitled to any amounts with respect to
any subsequent fiscal year).  Such
amounts shall be prorated based on the number of days during the fiscal year
that the Participant was employed by the Company and shall be paid to the
Participant at the same time such bonuses are payable to other
Participants.  For this purpose, the
Participant shall be “Disabled” if he is unable to engage in any substantial
gainful activity by reason of any medically determinable physical or mental
impairment which can be expected to result in death or which has lasted or can
be expected to last for a continuous period of not less than 12 months.

 

iv.                                   Termination by the Company for Cause.  Upon
any termination of the Participant’s employment for Cause prior to December 31,
2008, participation in the Plan by the Participant will terminate effective
upon the termination of employment.  Upon
termination for Cause, the Participant will forfeit all benefits under this
Plan.

 

“Cause” shall mean (i) the
termination of the Participant under (and in accordance with) the Company’s
policy of progressive documented discipline relating to the performance of the
Participant’s duties or compliance with Company policies, practices and
procedures; (ii) dishonesty, theft, embezzlement, fraud, or any similar
misconduct by the Participant; (iii) the Participant’s indictment or
arrest for a felony; (iv) conduct which, in the reasonable judgment of the
Company could have an adverse impact on the reputation, business or affairs of
the Company or an Affiliate; (v) any violation by the Participant of the
non-competition, non-interference and confidentiality provisions contained in
this Plan; (vi) any misrepresentation made by the Participant to the
Company or an Affiliate in connection with his employment.

 

2

 

METASTORM

 

2008 CORPORATE
INCENTIVE PLAN (CIP)

 

Exhibit A - Individual Plan and Acceptance

 

Plan Overview:

 

·                                          Target Compensation is

 

·                                                % of
Target Compensation based upon achievement of consolidated revenue of
$                    
for calendar year 2008 (Target Revenue).

 

·                                                % of
Target Compensation based upon achievement of consolidated EBITDA of $                  
for calendar year 2008 (Target EBITDA).

 

Plan Details:

 

·                                          Revenue Component of Target
Compensation:

 

·                                          No payout on achievement less than 90% of
Target Revenue.

 

·                                          Payout of 50% of Target Revenue Compensation
upon achievement of 90% of Target Revenue.

 

·                                          Payout percentage of Target Compensation
(revenue component) increases 5% points for each 1% increase above 90% of
Target Revenue up to 100% achievement. 
To illustrate, a 95% achievement of Target Revenue will result in a 75%
payout of Target Revenue Compensation.

 

·                                          Payout of 100% of Target Revenue Compensation
at 100% achievement of Target Revenue.

 

·                                          REVENUE ACCELERATOR:  Payout increases by 5% points for each 1%
over 100% of Target Revenue.  To
illustrate, a 101% achievement of Target Revenue would result in a 105% payout
of Target Revenue Compensation.

 

·                                          EBITDA Component of Target
Compensation:

 

·                                          No payout on achievement less than 90% of
Target EBITDA.

 

·                                          Payout of 50% of Target Compensation amount
upon achievement of 90% of Target EBITDA.

 

·                                          Payout percentage increases 5% points for
each 1% increase in EBITDA target above 90% achievement.  To illustrate, a 95% achievement of Target
EBITDA will result in a payout of 75% of Target EBITDA Compensation.

 

·                                          Payout of 100% of Target EBITDA Comp. upon
100% achievement.

 

3

 

·                                          EBITDA ACCELERATOR:  Payout on EBITDA component increases 1% for
each 1% achievement over 100% of Target. 
EBITDA Payout capped at 150% of Target Compensation (EBITDA component)

 

·                                          All payouts capped at 200% of
Target Compensation.

 

·                                          EBITDA profitability must exceed
plan EBITDA before any payments can be made on the revenue accelerators.

 

By my signature below, I
accept the terms and conditions of the 2008 CIP as detailed in the Plan
Document and this Exhibit A.

 

 

	
   

  	
   

  	
   

  
	
  Participant:

  	
   

  	
  Date

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Approved:

  	
   

  	
   

  
	
  

  	
   

  	
   

  
	
  Robert
  J. Farrell - Chief Executive Officer:

  	
   

  	
   

  

 

4Exhibit 10.13

 

EVERGREEN ATRIUM

 

26261 Evergreen Road 

Southfield, Michigan

 

LEASE

 

This
Lease is made between the Landlord and Tenant hereinafter identified in
Sections 1(b) and 1(c) hereof, respectively, and constitutes a Lease
between the parties of the “Demised Premises”
in the “Building”, as defined in Sections 2.2
and 2.1 hereof, respectively, on the terms and conditions and with and subject
to the covenants and agreements of the parties hereinafter set forth.

 

W I T N E S S E T H:

 

1.                                       Basic
Lease Provisions.

 

The
following are certain basic lease provisions, which are part of, and in certain
instances referred to in subsequent provisions of, this Lease:

 

	
  (a)  Date of this Lease:

  	
   

  	
  January 1, 2005

  
	
   

  	
   

  	
   

  
	
  (b)  Landlord:

  	
   

  	
  Evergreen Atrium, L.L.C., a Michigan limited
  liability company

  
	
   

  	
   

  	
   

  
	
  (c)  Tenant:

  	
   

  	
  Proforma Corporation, a Michigan corporation

  
	
   

  	
   

  	
   

  
	
  (d)  Demised Premises:

  	
   

  	
  Approximately 14,199 rentable square feet,
  consisting of approximately 9,392 rentable square feet located on the second
  floor of the Building, commonly known as Suite 200 (“Initial Demised Premises”) and approximately 4,807
  rentable square feet on the second floor of the Building, commonly known as
  Suite 215 (“Expansion Space”),
  both as described on Exhibit “A”
  attached hereto (together hereinafter, the (“Demised
  Premises)”.

  
	
   

  	
   

  	
   

  
	
  (e)  Tenant’s Reserved Parking Spaces:

  	
   

  	
  N/A

  

 

 

	
  (f)

  	
  Commencement Date for Initial Demised Premises:

  	
   

  	
  January 1, 2005

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Commencement Date for Expansion Space:

  	
   

  	
  March 1, 2005

  
	
   

  	
   

  	
   

  	
   

  
	
  (g)

  	
  Expiration Date for Demised Premises:

  	
   

  	
  February 28, 2010

  
	
   

  	
   

  	
   

  	
   

  
	
  (h)

  	
  Basic Rental for Initial Demised Premises:

  	
   

  	
   

  

 

	
  01/01/05
  - 02/28/05: $19.75 gross per rentable square foot per year. 

  
	
   

  
	
  Basic
  Rental for Demised Premises:

  
	
   

  	
   

  	
   

  
	
  03/01/05
  - 12/31/05: $19.75 gross per rentable square foot per year.

  01/01/06 - 12/31/06: $20.25 gross per rentable square foot per year.

  01/01/07 - 12/31/07: $20.75 gross per rentable square foot per year.

  01/01/08 - 12/31/08: $21.25 gross per rentable square foot per year.

  01/01/09 - 02/28/10: $21.75 gross per rentable square foot per year.

  
	
   

  
	
  There
  will be no late charge for the first monthly rental payment if made within
  three (3) days of executing this Lease.

  

 

	
  (i)  Tenant’s Share:

  	
   

  	
  From the Commencement Date for Initial Demised
  Premises until the day before the Commencement Date for the Expansion Space,
  6.23%. From the Commencement Date for the Expansion Space until the
  Expiration Date, 9.43%.

  
	
   

  	
   

  	
   

  
	
  (j)  Base Year:

  	
   

  	
  2005

  
	
   

  	
   

  	
   

  
	
  (k)  Tenant’s Use:

  	
   

  	
  General Office

  
	
   

  	
   

  	
   

  
	
  (1)  Security Deposit:

  	
   

  	
  N/A

  
	
   

  	
   

  	
   

  
	
  (m)  Tenant’s Address for Notices:

  	
   

  	
  Demised Premises

  
	
   

  	
   

  	
   

  
	
  (n)  Landlord’s Address for Notices:

  	
   

  	
  Evergreen Atrium, L.L.C.

  200 Franklin Center

  29100 Northwestern Highway

  Southfield, Michigan 48034

  
	
   

  	
   

  	
   

  
	
  (o)  Guarantor:

  	
   

  	
  N/A

  

 

 

	
  (p)  Guarantor’s Address for Notices:

  	
   

  	
  N/A

  

 

2.                                     Building
and Demised Premises.

 

2.1                                 Landlord
is the owner of certain land and improvements at 26261 Evergreen Road,
Southfield, Michigan, upon which Landlord has constructed a building
(hereinafter referred to as the “Building”),
consisting of five stories, together with certain interior and exterior common
and public areas and facilities, including the exterior on-grade parking areas
(hereinafter referred to as the “Common Areas”)
as may be designated by Landlord for use by Tenants of the Building, and their
employees, guests, customers or prospective customers, agents and
invitees.  The Building and all Common
Areas and appurtenances are hereinafter collectively referred to as the “Development.”

 

2.2                                 Subject
to the terms, covenants, agreements and conditions herein set forth, Landlord
hereby leases to Tenant, and Tenant hereby leases from Landlord, those certain
premises (herein referred to as the “Demised Premises”)
designated in Section 1(d) hereof, as shown on the floor plan(s) attached
hereto as Exhibit “A”, together with the
nonexclusive right to use the Common Areas. 
The Demised Premises and all other premises in the Building shall be
measured pursuant to the Building Owners and Managers Association (BOMA)
Standard for measuring floor area in office buildings ANSI Z65.1-1989.

 

2.3                                 Landlord
reserves (a) the right from time to time to make changes, alterations,
additions, improvements, repairs or replacements in or to the Building
(including the Demised Premises) and the fixtures and equipment thereof, as
well as in or to the street entrances, halls, passages, elevators, escalators
and stairways and other parts of the Building, and to erect, maintain, and use
pipes, ducts and conduits in and through the Demised Premises, all as Landlord
may reasonably deem necessary or desirable and provided that they do not
materially and adversely affect Tenant; and (b) the right to eliminate,
substitute and/or rearrange the Common Areas (which may theretofore have been
so designated) as Landlord deems appropriate in its discretion.  Tenant’s nonexclusive right to utilize the
Common Areas shall be in common with Landlord, other Tenants and occupants of
the Building and others to whom Landlord grants such rights from time to time.

 

2.4                                 Landlord
reserves the right from time to time upon at least sixty (60) days advance
written notice to relocate Tenant to other premises within the Building prior
to or during the term of this Lease (hereinafter referred to as the “Term”) so long as the usable area so substituted equals or
exceeds the usable area of the Demised Premises.  Landlord shall pay the reasonable relocation
costs of Tenant in connection therewith, but Landlord shall not have any other
liability with respect to such relocation.

 

 

3.                                     Term.

 

The
Term of this Lease shall commence on January 1, 2005 with respect to the
Initial Demised Premises (“Commencement Date A”)
and shall commence on March 1, 2005 with respect to the Expansion
Space (“Commencement Date B”) and, unless
sooner terminated as hereinafter provided, shall end on the “Expiration Date” set forth in Section 1(g) hereof
with respect to both the Initial Demised Premises and the Expansion Space;
provided, however, that if Tenant, with Landlord’s prior written approval,
shall have access to or use of or take occupancy of the Expansion Space for any
purpose whatsoever prior to the Commencement Date B described above, then the
Commencement Date B shall be deemed to have occurred on such earlier date.  Commencement Date A and Commencement Date B
may be referred to together hereinafter as the “Commencement
Date”.  Tenant shall not be
obligated to pay any holdover rent as a result of this Lease being signed after
December 31, 2004.

 

4.                                     Completion
of Improvements.

 

4.1                              Tenant
shall accept the Expansion Space and the Initial Demised Premises in their
current “AS IS” condition; provided, however, that Landlord shall make the
following modifications to the Initial Demised Premises (only) using Building
Standard finishes pursuant to a mutually approved space plan (“Initial Demised Premises Modifications”):

 

1.                                       The
existing suite entry doors shall be replaced with a new single glass entry door
with glass sidelight;

2.                                       New
building standard carpeting in the lobby of the Initial Demised Premises;

3.                                       New
building standard carpeting in the common area of the Initial Demised Premises;

4.                                       Re-paint
all painted walls in the Initial Demised Premises except for the following
areas: (i) both corner conference rooms, (ii) training room, (iii) lobby,
(iv) president’s office, and (v) any wallcovered walls;

5.                                       Replace
all vinyl base trim on re-painted walls in the Initial Demised Premises only;

6.                                       Clean
and re-hang all existing drapes, fans and air intakes in the Initial Demised
Premises;

7.                                       Create
a doorway only (no door) between the lobby of the Initial Demised Premises and
the Expansion Space;

8.                                       Provide
wood caps on three (3) administrative area ledges; and

9.                                       Replace
carpet with Building standard carpet in president’s office and conference room
(which was previously going to have carpet stretched).

 

 

Tenant
shall construct or install in the Initial Demised Premises all improvements and
work required and not to be performed by Landlord as part of the Initial
Demised Premises Modifications.

 

4.2                               Space
Plan and Working Drawings.

 

(a)                                  Landlord’s
architect shall prepare a space plan for the Demised Premises (and any
revisions thereto) (the “Space Plan”),
subject to subsection (d) hereof. 
The Space Plan will then be submitted to Landlord for its approval,
which approval shall not be unreasonably withheld or delayed.

 

(b)                                 Once
the parties agree upon and approve the Space Plan, Landlord shall cause its
architect to prepare final architectural working drawings and specifications in
accordance with the Space Plan for the construction of the Tenant Improvements
(the “Working Drawings”), subject to
subsection (d) below.  Upon
completion thereof, Landlord or its architect shall promptly submit the Working
Drawings to Tenant for its approval, which approval shall be deemed given
unless Tenant indicates its disapproval, along with its requested changes (in
writing) within five (5) business days of its receipt of the initial
Working Drawings.  In the event the
Working Drawings need to be revised due to errors on the part of the architect,
then Tenant shall have an additional three (3) business day period from
the date of its receipt of any such revised Working Drawings within which to
approve same.  Once approved by Landlord
and Tenant, the Working Drawings and the Space Plan shall be referred to collectively
herein as the “Tenant Improvement Plans.”

 

(c)                                  Once
the Tenant Improvement Plans have been approved, the Tenant Improvement Plans
shall not be changed without the prior written approval of Landlord and Tenant,
which approval shall not be unreasonably withheld or delayed.

 

(d)                                 Notwithstanding
anything contained herein to the contrary, Landlord shall provide, at Landlord’s
cost, space planning services through Landlord’s architect with up to two (2) revisions
by Tenant to the Space Plan.  Landlord shall
also provide, at Landlord’s cost, one (1) set of Working Drawings.  Tenant shall pay the cost of all revisions to
the Space Plan after the first two (2) revisions, if any, and shall pay
the cost of any revisions to the initial set of Working Drawings (other than
revisions necessitated by errors made by Landlord’s architect).

 

5.                                     Rental.

 

5.1                                 Tenant
shall pay to Landlord as rental for the Demised Premises the Basic Rental set
forth in Section 1(h) hereof, which shall be payable in equal monthly
installments in advance, together with the rentals provided for in Section 5.3
hereof.

 

5.2                                 The
following terms shall have the following meanings:

 

 

(a)                                  The
term “Expenses” shall mean the actual cost
incurred by Landlord with respect to the operation, maintenance, repair and
replacement and administration  of the
Development, including, without limitation or duplication, (1) the costs
incurred for air conditioning; mechanical ventilation; heating; cleaning
(including janitorial services); rubbish removal; snow removal; general
landscaping and maintenance; window washing, porter and matron services,
electric current for Common Areas; management fees; protection and security
services; repairs, replacement, and maintenance; fire, extended coverage,
boiler, sprinkler, apparatus, public liability and property damage insurance
(including loss of rental income insurance); supplies; wages, salaries,
disability benefits, pensions, hospitalization, retirement plans and group
insurance respecting service and maintenance employees and management staff not
above the grade of building manager; uniforms and working clothes for such
employees and the cleaning thereof; expenses imposed pursuant to any collective
bargaining agreement with respect to such employees; payroll, social security,
unemployment and other similar taxes with respect to such employees and staff;
sales, use and other similar taxes but excluding Landlord’s income,
inheritance, franchise or estate taxes; water rates and sewer charges; personal
property taxes; depreciation of movable equipment and personal property, which
is, or should be, capitalized on the books of Landlord, and the cost of movable
equipment and personal property, which need not be so capitalized, as well as
the cost of maintaining all such movable equipment, and any other costs,
charges and expenses which, under generally accepted accounting principles and
practices, would be regarded as maintenance and operating expenses, (2) any
costs and expenses paid or incurred by Landlord for the repair, maintenance and
operation of the roads and common areas of the Development, and (3) the
cost of any capital improvements made to the Building by Landlord after the
Commencement Date that are intended, in the exercise of Landlord’s reasonable
judgment, to reduce other Expenses, or made to the Building by Landlord after
the date of this Lease that are required under any governmental law or
regulation that was not applicable to the Building at the time it was
constructed, such costs to be amortized in accordance with GAAP over useful
life thereof, together with interest on the unamortized balance at the rate of
two percent (2%) in excess of the then current “prime rate”
of Chase Manhattan Bank, N.A. or such higher rate as may have been paid by
Landlord on funds borrowed for the purpose of constructing such capital
improvements but not to exceed the highest rate permissible by law.

 

The
Expenses shall be adjusted to equal Landlord’s reasonable estimate of Expenses
had ninety five percent (95%) of the total rentable area of the Building been
occupied and had (95%) of the total rentable area of the Building been
furnished all services.  In order
equitably and consistently to calculate any increases in Expenses over the Base
Year, if, during the Base Year, Landlord furnished a particular work or service
to any portion of the Development (the cost of which constituted an Expense)
and if, during any year following the Base Year, Landlord no longer furnishes
such work or service for any reason whatsoever, then the Expenses for such
later year shall be 

 

 

increased by an amount equal to the additional cost
which would have been incurred by Landlord had Landlord continued to furnish
such work or service.

 

Notwithstanding
anything contained herein to the contrary, Expenses shall not include:

 

1.                                       Repairs
or other work occasioned by fire, windstorm or other casualty for which
Landlord is insured;

 

2.                                       Leasing
commission, attorney’s fees, costs and disbursements and other expenses
incurred in connection with negotiations or disputes with tenants, or
purchasers or mortgagees of the Building;

 

3.                                       Expenses
incurred in renovating or otherwise improving space for tenants or vacant
space;

 

4.                                       Landlord’s
costs of electricity and other services sold to tenants and for which Landlord
is entitled to be reimbursed by such tenants as an additional charge over and
above the basic rent payable under the Lease with such tenants;

 

5.                                       Except
as otherwise provided herein, depreciation and amortization;

 

6.                                       Expenses
in connection with services or other benefits of a type which are not provided
to Tenant but which are provided to another tenant or occupant;

 

7.                                       Costs
incurred due to violation by Landlord or any tenant or other occupant of the
terms and conditions of any lease;

 

8.                                       Overhead
and profit increments paid to subsidiaries or affiliates of Landlord for
services on or to the real property, to the extent only that the costs of
services exceed competitive costs of such services were they not so rendered by
a subsidiary or affiliate;

 

9.                                       Interest
debt or amortization payments on any mortgage or mortgages, and rental under
any ground or underlying leases or lease;

 

10.                                 All
items and services for which Tenant or tenants reimburse Landlord or pay third
persons;

 

11.                                 Any
costs, fines or penalties incurred due to violations by Landlord of any
governmental rule or authority;

 

12.                                 Costs
incurred in connection with the sale, refinancing, mortgaging or selling or
change of ownership of the Building, including brokerage commissions, attorneys’
and accountants’ fees, closing costs and interest charges;

 

 

13.                               Costs,
fines, interest, penalties, legal fees or costs of litigation incurred due to
the late payment of taxes, utilities, bill and other costs incurred by Landlord’s
failure to make such payments when due;

 

14.                               Expenses
and costs relating in any way whatsoever to the identification, testing,
monitoring, control, encapsulation, removal, replacement, repair and abatement
of any hazardous materials within the Building, Demised Premises and the land.

 

(b)                                 The
term “Taxes” shall mean the amount incurred by Landlord for all ad valorem real
property taxes and assessments, special or otherwise, levied upon or with
respect to the Development, or the rent and additional charges payable
hereunder, imposed by any taxing authority having jurisdiction.  Taxes shall also include all taxes, levies
and charges which may be assessed, levied or imposed in replacement of, or in
addition to, all or any part of ad valorem real property taxes as revenue
sources, and which in whole or in part are measured or calculated by or based
upon the Development, the freehold and/or leasehold estate of Landlord or
Tenant, or the rent and other charges payable hereunder. Taxes shall include
any expenses incurred by Landlord in determining or attempting to obtain a
reduction of Taxes.

 

(c)                                  The
term “Tenant’s Share” shall mean the percentage set forth in Section 1(i) hereof.  Tenant’s Share has been computed on the basis
of the rentable square foot area of the Demised Premises divided by the total rentable
square foot area of the Building (including the Demised Premises) calculated in
accordance with the BOMA Standard.  The
rentable square foot area of the Building is 152,743.

 

5.3

 

(a)                                  Commencing
on January 1, 2006, and
continuing thereafter for the remainder of the Term, as the same may be
extended, Tenant shall pay to Landlord as additional rental Tenant’s Share of
all increases in Expenses and Taxes in excess of the Expenses and Taxes for the
2005 calendar year (the “Base Year”), in the manner and at the times herein provided.

 

(b)                                 Prior
to the beginning of the 2006 calendar
year and each calendar year thereafter during the Term, or as soon thereafter
as practicable but in no event later than April 1, Landlord shall give
Tenant not less than thirty (30) days’ prior notice of Landlord’s estimate of
Tenant’s Share of increases in Expenses and Taxes over the Base Year for the
ensuing calendar year.  On or before the
first day of each month during the ensuing calendar year, Tenant shall pay to
Landlord one-twelfth (1/12th) of such estimated amounts, provided that until
such notice is given with respect to the ensuing calendar year, as the case may
be, Tenant shall continue to pay the amount currently payable pursuant hereto
until after the month such notice is given. 
If at any time or times (including, without limitation, upon Tenant
taking occupancy of the Demised Premises) it appears to Landlord that Tenant’s
Share of increases in Expenses and Taxes over the 

 

 

Base Year for the then current calendar year, as the case may be, will
vary from Landlord’s estimate by more than five percent (5%), Landlord may, by
not less than thirty (30) days prior notice to Tenant, revise its estimate for
such year and subsequent payments by Tenant for such year shall be based upon
such revised estimate.

 

(c)                                  Within
ninety (90) days after the close of each calendar year, or as soon after such
ninety (90) day period is practicable, but in no event later than twelve (12)
months after such close of the calendar year, Landlord shall deliver to Tenant
a statement prepared by Landlord of Tenant’s Share of Expenses and Taxes for
such calendar year and such statement shall be final and binding upon Landlord
and Tenant.  If Landlord fails to deliver
such a statement within such 12-month period during the Term, or prior to April 1
of the year after termination of the Lease, Landlord waives its right to any
further amount due from Tenant with respect to such calendar year.  If on the basis of either of such statements,
Tenant owes an amount that is less than the estimated payments for such
calendar year previously made by Tenant, Landlord shall refund such excess
amount to Tenant within thirty (30) days. 
If on the basis of such statement, Tenant owes an amount that is more
than the estimated payments for such calendar year previously made by Tenant,
Tenant shall pay the deficiency to Landlord within thirty (30) days after
delivery of such statement

 

(d)                                 If
this Lease shall terminate on a day other than the last day of a calendar year,
Tenant’s Share of Expenses and Taxes that is applicable to Landlord’s calendar
year in which such termination shall occur shall be prorated on the basis of
the number of calendar days within such year as are within the Term.

 

(e)                                  Landlord
shall, at Tenant’s request, make available to Tenant for inspection and
examination, all the books and records that relate to Expenses so that Tenant
can determine that the Expenses have been calculated in accordance with this
Lease and GAAP consistently applied.  In
the event Tenant shall dispute Landlord’s statement of the Expenses and the
parties cannot resolve their differences within thirty (30) days of notice from
Tenant of its disagreement with such statement, either party may refer the
matter to arbitration in the same manner as provided in the commercial
arbitration rules of the American Arbitration Association except that the
arbitrators shall be accountants or real estate consultants with not less than
five (5) years of experience with commercial real estate leases in Oakland
County or, with the consent of both parties, persons with not less than five (5) years
of experience in owning or managing commercial real estate in Oakland
County.  This provision shall survive the
expiration or earlier termination of the term of this Lease.

 

5.4                               The
first installment of the Basic Rental due hereunder, provided for in Section 5.1
hereof, shall be paid by Tenant to Landlord on or before the fourteenth (14th)
day prior to the Commencement Date. 
Basic Rental shall be paid to Landlord on or before the first day of
each and every successive calendar month in advance after the first month
during the Term.  In the event the
Commencement Date is other than the first day 

 

 

of a calendar month, or the Expiration Date is other
than the last day of the calendar month, then the monthly rental for the first
and last fractional months of the Term shall be appropriately prorated.

 

5.5                                 Tenant
shall pay as additional rental any money and charges required to be paid by
Tenant pursuant to the terms of this Lease, whether or not the same may be
designated “additional rent.”

 

5.6                                 Except
as above provided, rental and additional rental shall be paid to Landlord
without notice or demand and without deduction or offset, in lawful money of
the United States of America at Landlord’s address for notices hereunder or to
such other person or at such other place as Landlord may from time to time
designate in writing.  All amounts
payable by Tenant to Landlord hereunder, if not paid within five (5) days
of when due shall bear interest from the due date until paid at the lesser of
fifteen (15%) percent per annum or the maximum lawful rate of interest;
additionally, Landlord may charge Tenant a fee equal to five (5%) percent of
the delinquent payment to reimburse Landlord for its cost and inconvenience
incurred as a consequence of Tenant’s delinquency.  In no event, however, shall the charges
permitted under this Section 5.4 or elsewhere in this Lease, to the extent
they are considered to be interest under law, exceed the maximum lawful rate of
interest.

 

6.                                     Other
Taxes Payable by Tenant.

 

In
addition to the monthly rental and other charges to be paid by Tenant
hereunder, Tenant shall reimburse Landlord upon demand for any and all taxes
payable by Landlord (other than income taxes and taxes included within Taxes)
whether or not now customary or within the contemplation of the parties hereto:
(a) upon, measured by or reasonably attributable to the cost or value of
Tenant’s equipment, furniture, fixtures and other personal property located in
the Demised Premises or by the cost or value of any leasehold improvements made
in or to the Demised Premises by or for Tenant, other than building standard
Tenant improvements made by Landlord, regardless of whether title to such
improvements shall be in Tenant or Landlord; (b) upon or with respect to
the possession, leasing, operation, management, maintenance, alteration,
repair, use or occupancy by Tenant of the Demised Premises or any portion
thereof; (c) upon this transaction or any document to which Tenant is a
party creating or transferring an interest or an estate in the Demised
Premises; and (d) upon an increase with respect to the funding of items
such as stadium construction, community colleges or other similar type items.  In the event that it shall not be lawful for
Tenant so to reimburse Landlord, the monthly rental payable to Landlord under
this lease shall be revised to net to Landlord the same rental after imposition
of any such tax upon Landlord as would have been payable to Landlord prior to
the imposition of any such tax.

 

 

7.                                    Use.

 

7.1                                 The
Demised Premises shall be used only for the purposes of “Tenant’s Use”
as set forth in Section l(k) hereof, and for no other purpose or
purposes whatsoever.

 

7.2                                 Tenant
shall not do or permit to be done in or about the Demised Premises, nor bring
or keep or permit to be brought or kept therein, anything which is prohibited
by or will in any way conflict with any law, statute, ordinance or governmental
rule or regulation now in force or which may hereafter be enacted or
promulgated, or which is prohibited by the standard form of fire insurance
policy, or will in any way increase the existing rate of or affect any fire or
other insurance upon the Building or any of its contents, or cause a
cancellation of any insurance policy covering the Building or any part thereof
or any of its contents, or adversely affect or interfere with any services
required to be furnished by Landlord to Tenant, or to any other Tenants or
occupants of the Building, or with the proper and economical rendition of any
such service.  Tenant shall not do or
permit anything to be done in or about the Demised Premises which will in any
way obstruct or interfere with the rights of other Tenants of the Building, or
injure or annoy them, or use or allow the Demised Premises to be used for any
improper, immoral, unlawful or objectionable purpose, nor shall Tenant cause,
maintain or permit any nuisance in, on or about the Demised Premises or commit
or suffer to be committed any waste in, on or about the Demised Premises. If
anything done, omitted to be done or suffered to be done by Tenant, or kept or
suffered by Tenant to be kept in, upon or about the Demised Premises shall
cause the rate of fire or other insurance on the Building in companies
acceptable to Landlord to be increased beyond the minimum rate from time to
time applicable to the Building, Tenant shall pay the amount of any such
increases.

 

7.3                                 Tenant
shall not utilize the Demised Premises for a massage parlor, tennis club,
skating facility (including roller skating, skateboard and ice skating),
racquet sports facility (including handball or racquetball court), hot tub
facility, suntan facility, health club facility, any facility primarily used
for gambling or an operation the principal business of which is the sale of
alcoholic beverages for off premises consumption.

 

8.                                    Services.

 

8.1                                 Landlord
shall maintain the Common Areas including any lobbies, stairs, elevators,
corridors and restrooms, together with the windows and exterior walls, roofs,
foundations and structure itself of the Building and the mechanical, plumbing
and electrical equipment servicing the Building, in good order and condition as
reasonably determined by Landlord and the cost (excluding roof, foundations and
structure) shall be included in Expenses, except for the repairs due to fire
and other casualties (to the extent the cost of such repairs are covered by
insurance proceeds) and for the repair of damages occasioned by the acts or
omissions of Tenant, which Tenant shall pay to Landlord in full.

 

 

8.2                                 Landlord
will arrange for the furnishing of electricity to the Demised Premises and
shall charge Tenant for electricity based on one of the following methods of
calculation, at Landlord’s election: (i) on a prorata basis as determined
by Tenant’s proportionate share of the Building (“Tenant’s Share”) as set forth
in Section 1(i) hereof; or (ii) as determined by metering at the
local secondary rates published by the proper regulating authorities in effect
from time to time covering such services, but not more than the secondary rates
which would be charged to Tenant by the public utility company.  Tenant’s Share was determined by using Tenant’s
rentable square feet of its Demised Premises as the numerator and the total
rentable square footage of the Building as the denominator.  Such charge to Tenant for electricity shall
be payable in monthly installments together with Basic Rental in the amount
invoiced to Tenant.  From time to time
during the Term, Landlord may inspect the Demised Premises in order to evaluate
Tenant’s kilowatt hour electric consumption and demand, and if as a result of
such inspection, the amount charged to Tenant must change because of changes in
demand and/or consumption, Landlord shall notify Tenant and commencing with the
first day of the next calendar month, Tenant shall pay such revised charges in
monthly installments.  Notwithstanding
anything herein contained to the contrary, Landlord reserves the right to
terminate the furnishing of electricity at any time upon thirty (30) days
notice to Tenant, in which event Tenant shall make application directly to the
utility company servicing the Building for Tenant’s separate supply of electric
current, and Landlord shall permit its wires and conduits to be used for such
purposes, to the extent available and capable of being used safely.

 

8.3                                 Landlord
shall furnish the Demised Premises with (a) heat, ventilation and air
conditioning to the extent required for the occupancy of the Demised Premises
to standards of comfort and during such hours in each case as reasonably
determined by Landlord for the building (which hours, until Landlord shall
otherwise designate, shall be from 8:00 a.m. to 6:00 p.m. on weekdays
and from 8:00 a.m. to 1:00 p.m. on Saturdays; in each case except
holidays), or as may be prescribed by any applicable policies or regulations
adopted by any utility or governmental agency, (b) elevator service and (c) janitorial
service as described on Exhibit “C”
hereto only to the areas of the Demised Premises used for office purposes
during the times and in the manner that services are furnished in comparable
first class office buildings in the area, provided that Landlord shall not
provide janitorial services to any portion of the Demised Premises used for
other than office purposes such as preparing, dispensing or consumption of food
or beverages or as an exhibition area or for storage, shipping room, washroom
or similar purposes, or as private restrooms or a shop or for the operation of
computer data processing, reproduction, duplicating or similar equipment.  Landlord shall not be in default hereunder or
be liable for any damages directly or indirectly resulting from, nor shall the
rental herein reserved be abated by reason of: (1) the installation, use
or interruption of use of any equipment in connection with the furnishing of
any of the foregoing services, (2) failure to furnish or delay in
furnishing any such services when such failure or delay is caused by accident
or any condition beyond the reasonable control of Landlord or by 

 

 

the making of necessary repairs or improvements to the
Demised Premises or to the Building, or (3) any limitation, curtailment,
rationing or restriction on use of water, electricity, steam, gas or any other
form of energy serving the Demised Premises or the Building.  Notwithstanding anything to the contrary
herein contained, in the event any utility services required to be provided by
Landlord pursuant to Section 8.3 hereof are not provided for a period in
excess of seventy two (72) consecutive hours due to the negligence or wrongful
acts of Landlord, its agents, contractors of employees, and Tenant is unable to
operate in all or a portion of the Demised Premises as a result thereof, then
the Basic Rental and all other rents and charges hereunder shall abate (pro
rata) from and after the expiration of such seventy two (72) consecutive hours
until such services are restored or Tenant again commences operations therein
with respect to such portion of the Demised Premises in which Tenant is unable
to so operate.  Landlord shall use
reasonable efforts diligently to remedy any interruption in the furnishing of
such services. Notwithstanding the provisions of this Section 8.3,
Landlord shall not be required to provide ventilation and air conditioning to
the Demised Premises as herein provided if Tenant shall utilize in the Demised
Premises heat generating equipment or lighting other than building standard
lights which affect the temperature otherwise maintained by the air
conditioning system or if the Demised Premises are occupied by a number of
persons in excess of the design criteria of the air conditioning system.

 

8.4                                 Tenant
shall pay as additional rent the amount of $40.00 per hour per unit for Landlord’s
cost of providing all air conditioning and all heating and ventilating to the
Demised Premises in excess of that required for normal office use or during
hours requested by Tenant when heating, ventilating and air conditioning is not
otherwise furnished by Landlord.  Tenant
shall notify Landlord in writing at least twenty-four (24) hours prior to the
time it requires heating, ventilating and air conditioning during periods the
same are not otherwise furnished by Landlord. 
Notwithstanding the foregoing, Landlord shall only be required to
provide heating, ventilating and air conditioning to the extent available
utilizing the existing equipment servicing the Building. Landlord shall be
responsible for maintaining (and if necessary, repairing or replacing) the
Building’s existing HVAC equipment.

 

8.5                                 Landlord,
at Tenant’s cost, shall replace all lamps, fluorescent tubes or bulbs in the
Demised Premises when necessary unless Tenant shall elect to replace the bulbs.

 

9.                                     Alterations
and Repairs.

 

9.1                                 Tenant
shall not, at any time during the Term, make or suffer to be made any
alterations, additions or improvements to or of the Demised Premises or any
part thereof (including “Specialty Alterations” defined below) or attach any
fixtures or equipment thereto, without first obtaining Landlord’s written
consent thereto, which consent Landlord shall not unreasonably withhold or
delayed; provided, however, that Landlord shall not be deemed unreasonable by
refusing to consent to any alterations 

 

 

which are visible from the exterior of the Building,
which will or are likely to cause any weakening of any part of the structure of
the Demised Premises or the Building or which will or are likely to cause
damage or disruption to the central systems of the Building (including, without
limitation, electrical, HVAC, plumbing, telephone, mechanical, security and
life safety systems) or which are prohibited by any underlying ground lease or
mortgage.  “Specialty
Alterations” are defined as alterations consisting of kitchens, executive
bathrooms, raised computer floors, computer, telephone and telecommunications
wiring and cabling in the Demised Premises and the Building, computer
installations, supplemental air conditioning systems, sale deposit boxes,
vaults, libraries or file rooms requiring reinforcement of floors, internal
staircases, conveyors, dumbwaiters, and other alterations of a similar
character which Landlord designates as Specialty Alterations by written notice
delivered to Tenant when Landlord approves Tenant’s plans containing any such
alterations.  All construction,
alterations, including Specialty Alterations, and repair work done by or for
Tenant pursuant to any provision of this Lease shall: (a) be performed in
such a manner as to maintain harmonious labor relations; (b) not adversely
affect the safety of the Building or the Demised Premises or the systems
thereof and not affect the central systems of the Building; (c) comply
with all building, safety, fire, plumbing, electrical, and other codes and
governmental and insurance requirements; (d) not result in any usage in
excess of building standard water, electricity, gas or other utilities or of
heating, ventilating or air conditioning (either during or after such work)
unless prior written arrangements satisfactory to Landlord are made with
respect thereto; (e) be completed promptly and in a good and workmanlike
manner; and (f) not disturb Landlord or other tenants in the Building.

 

9.2                                 Should
Tenant desire to make any alterations to the Demised Premises, Tenant shall
submit all plans and specifications for such proposed alterations to Landlord
for Landlord’s review before Tenant allows any such work to commence, and
Landlord shall promptly approve or disapprove such plans and specifications for
any of the reasons set forth in Section 9.1 or for any other reason
reasonably deemed sufficient by Landlord. 
Tenant shall select and use only contractors, subcontractors or other
repair personnel that have been approved by Landlord.  Upon Tenant’s receipt of written approval
from Landlord and upon Tenant’s payment to Landlord of the reasonable costs
incurred by Landlord for such review and approval (including a reasonable fee
for the actual time spent by employees of Landlord), Tenant shall have the
right to proceed with the construction on all approved alterations, but only so
long as such alterations are in strict compliance with the plans and
specifications so approved by Landlord and with the provisions of this Article 9.  All alterations shall be made at Tenant’s
sole cost and expense.  If Tenant elects
to have Landlord perform an alteration, Tenant shall pay Landlord all costs
incurred in connection therewith.  If
Tenant’s contractor performs such work, there shall be a fee of ten percent
(10%) of the actual costs of such work for Landlord’s agent or manager in
supervising and coordinating such work and to cover overhead.  In no event, however, shall anyone other than
Landlord or Landlord’s 

 

 

employees or representatives perform work to be done
which affects the central systems of the Building.

 

9.3                                 Except
for “Tenant’s Property” (as hereinafter defined), all leasehold improvements,
alterations, including Specialty Alterations, and other physical additions made
to or installed by or for Tenant in the Demised Premises shall be and remain
Landlord’s property and shall not be removed without Landlord’s written
consent. “Tenant’s Property” as used herein
shall mean all of Tenant’s movable fixtures and movable partitions, telephone
and telecommunication wiring and cabling and related equipment, computer
systems, trade fixtures, furniture, furnishings, and other items of personal
property located in the Demised Premises. 
On or before the Expiration Date, any earlier date of termination of
this Lease or the date that Tenant vacates from the Demised Premises, whichever
shall first occur, Tenant agrees to remove, at its sole cost and expense, all
of Tenant’s Property (unless Landlord consents in writing to Tenant’s request
to allow the Tenant’s Property or any portion thereof to remain in the Demised
Premises), and, if directed to or permitted to do so by Landlord in writing,
all, or any part of, the leasehold improvements, alterations, including
Specialty Alterations, and other physical additions made by Tenant to the
Demised Premises.  Tenant shall restore
and repair (which shall include closing-up any slab penetrations in the Demised
Premises in a good and workmanlike manner), or promptly reimburse Landlord for
the cost of restoring and repairing (including closing any such slab
penetrations) any and all damage done to the Demised Premises or the Building
by such removal.  Tenant shall notify
Landlord of its intention to affect the closing of any such slab penetrations
at least thirty (30) days prior to commencing such closings.  Any leasehold improvements, alterations,
including Specialty Alterations, and other physical additions made by Tenant to
the Demised Premises (which Landlord does not direct or permit Tenant to remove
at any time during or at the end of the Term) shall become the property of
Landlord at the end of the Term without any payment to Tenant.  If Tenant fails to remove any of Tenant’s
property by the Expiration Date or any sooner date of termination of the Lease
or, if Tenant fails to remove any leasehold improvements, alterations,
including Specialty Alterations, and other physical additions made by Tenant to
the Demised Premises which Landlord has in writing directed Tenant to remove,
Landlord shall have the right, on the fifth (5th) day after
Landlord’s delivery of written notice to Tenant to deem such property abandoned
by Tenant and to remove, store, sell, discard or otherwise deal with or dispose
of such abandoned property in a commercially reasonable manner.  Tenant shall be liable for all costs of such
disposition of Tenant’s abandoned property, and Landlord shall have no
liability to Tenant in any respect regarding such property of Tenant.  The provisions of this Section 9.3 shall
survive the expiration or any earlier termination of this Lease.

 

10.                               Liens.

 

Any
construction lien filed against the Demised Premises or the Building for work
claimed to have been done or materials claimed to have been furnished to Tenant
shall be 

 

 

discharged by Tenant within ten (10) days
thereafter.  For the purposes hereof, the
bonding of such lien by a reputable casualty or insurance company reasonably
satisfactory to Landlord shall be deemed the equivalent of a discharge of any
such lien. Should any action, suit, or proceeding be brought upon any such lien
for the enforcement or foreclosure of the same, Tenant shall defend Landlord
therein, by counsel satisfactory to Landlord, and pay any damages and satisfy
and discharge any judgment entered therein against Landlord.

 

11.                               Destruction
or Damage.

 

11.1                           In the
event the Demised Premises or any portion of the Building necessary for Tenant’s
occupancy are damaged by fire, earthquake, act of God, the elements or other
casualty in each case insured against by Landlord’s fire and extended coverage
insurance policy covering the Building and, if Landlord’s reasonable estimate
of the cost of making such repairs does not exceed the proceeds of such
insurance by more than One Hundred Thousand Dollars ($100,000), Landlord shall
forthwith repair the same if such repairs can, in Landlord’s opinion, be
completed within ninety (90) days after commencement of such repairs.  This Lease shall remain in full force and
effect except that an abatement of Basic Rental shall be allowed Tenant for
such part of the Demised Premises as shall be rendered unusable by Tenant in
the conduct of its business during the time as such part is so unusable to the
extent Landlord is reimbursed therefor by loss of rental income or other
insurance.  If such repairs cannot, in Landlord’s
opinion, be made within ninety (90) days, or if such damage or destruction is
not insured against by Landlord’s fire and extended coverage insurance policy
covering the Building or if Landlord’s reasonable estimate of the cost of
making such repairs exceeds the proceeds of such insurance by more than One
Hundred Thousand Dollars ($100,000), Landlord may elect, upon notice to Tenant
within thirty (30) days after the date of such fire or other casualty, to
repair or restore such damage, in which event this Lease shall continue in full
force and effect, but the Basic Rental shall be partially abated as provided in
this Section 11.1.  If Landlord
elects not to make such repairs, this Lease shall terminate as of the date of
such election by Landlord.

 

11.2                           A total
destruction of the Building shall automatically terminate this Lease.

 

11.3                           If the
Demised Premises are to be repaired under this Article 11, Landlord shall
repair at its cost any injury or damage to the Building itself and building
standard Tenant improvements in the Demised Premises to be constructed or
installed by Landlord as set forth in Exhibit “B”
and such letter agreement, if any. 
Tenant shall perform and pay the cost of repairing any other improvement
in the Demised Premises and shall be responsible for carrying such casualty
insurance as it deems appropriate with respect to such other Tenant
improvements.

 

 

12.          Subrogation.

 

Landlord
and Tenant shall each obtain from their respective insurers under all policies
of fire insurance maintained by either of them at any time during the Term
insuring or covering the Building or any portion thereof or operations therein,
a waiver of all rights of subrogation which the insurer of one party might have
against the other party, and Landlord and Tenant shall each indemnify the other
against any loss or expense, including reasonable attorneys’ fees, resulting
from the failure to obtain such waiver and, so long as such waiver is
outstanding, each party waives, to the extent of the proceeds received under
such policy, any right of recovery against the other party for any loss covered
by the policy containing such waiver; provided, however, that if at any time
their respective insurers shall refuse to permit waivers of subrogation,
Landlord or Tenant, in each instance, may revoke said waiver of subrogation
effective thirty (30) days from the date of such notice, unless within such
thirty (30) day period, the other is able to secure and furnish (without
additional expense) equivalent insurance with such waivers with other companies
satisfactory to the other party.

 

13.          Eminent Domain.

 

If all
or any part of the Demised Premises shall be taken as a result of the exercise
of the power of eminent domain, this Lease shall terminate as to the part so
taken as of the date of taking, and, in the case of partial taking, either
Landlord or Tenant shall have the right to terminate this Lease as to the
balance of the Demised Premises by notice to the other within thirty (30) days
after such date; provided, however, that a condition to the exercise by Tenant
of such right to terminate shall be that the portion of the Demised Premises
taken shall be of such extent and nature as substantially to handicap, impede
or impair Tenant’s use of the balance of the Demised Premises.  In the event of any taking, Landlord shall be
entitled to any and all compensation, damages, income, rent, awards, or any interest
therein whatsoever which may be paid or made in connection therewith, and
Tenant shall have no claim against Landlord for the value of any unexpired term
of this Lease or otherwise. In the event of a partial taking of the Demised
Premises which does not result in a termination of this Lease, the rental
thereafter to be paid shall be reduced on a per square foot basis.

 

14.          Landlord’s
Insurance.

 

Landlord
shall, during the Term, provide and keep in force or cause to be provided or
kept in force:

 

(a)           Comprehensive
general liability insurance with respect to Landlord’s operation of the
Development for bodily injury or death and damage to property of others;

 

 

(b)           Fire
insurance (including standard extended coverage endorsement perils and leakage
from fire protective devices) in respect of the Building, excluding Tenant’s
trade fixtures, equipment and personal property;

 

(c)           Loss
of rental income insurance;

 

together with such other insurance as Landlord, in its
sole discretion, elects to obtain. Insurance effected by Landlord shall be in
amounts which Landlord shall from time to time determine reasonable and
sufficient, shall be subject to such deductibles and exclusions which Landlord
may deem reasonable and shall otherwise be on such terms and conditions as
Landlord shall from time to time determine reasonable and sufficient. Tenant
acknowledges that Landlord’s loss of rental income insurance may provide that (i) payments
thereunder by the insurer will be limited to a period of one year following the
date of any destruction and damage, and (ii) no insurance proceeds will be
payable thereunder in the case of destruction or damage caused by any
occurrence other than fire and other risks included in the standard extended
coverage endorsement perils of a fire insurance policy.

 

15.          Indemnification
and Tenant’s Insurance.

 

15.1         Except for loss or damage resulting
from Landlord’s negligence or wrongful misconduct, Tenant hereby waives all
claims against Landlord for damage to any property or injury or death of any
person in, upon or about the Demised Premises arising at any time and from any
cause whatsoever, and Tenant shall hold Landlord harmless from any damage to
any property or injury to or death of any person arising from the use of the
Demised Premises by Tenant.  The
foregoing indemnity obligation of Tenant shall include reasonable attorneys’
fees, investigation costs and all other reasonable costs and expenses incurred
by Landlord from the first notice that any claim or demand is to be made or may
be made.  The provisions of this Section 15.1
shall survive the termination of this Lease with respect to any damage, injury
or death occurring prior to such termination.

 

15.2         Tenant shall procure and keep in effect
comprehensive general liability insurance, including contractual liability,
with minimum limits of liability of One Million Dollars ($1,000,000) per
occurrence for bodily injury or death, and Two Hundred Fifty Thousand Dollars
($250,000) per occurrence for property damage. 
From time to time, Tenant shall increase the limits of such policies to
such higher limits as Landlord shall reasonably require.  Such insurance shall name Landlord and its
mortgagee(s) as additional named insureds, shall specifically include the
liability assumed hereunder by Tenant, and shall provide that it is primary
insurance and not excess over or contributory with any other valid, existing
and applicable insurance in force for or on behalf of Landlord, and shall
provide that Landlord shall receive thirty (30) days notice from the insurer
prior to any cancellation or change of coverage.

 

 

15.3         Tenant shall procure and keep in effect
fire insurance (including standard extended coverage endorsement perils and
leakage from fire protective devices) for the full replacement cost of Tenant’s
trade fixtures, equipment, personal property and leasehold improvements.

 

15.4         Tenant shall deliver policies of the
insurance required pursuant to Sections 15.2 and 15.3 hereof or certificates
thereof to Landlord on or before the Commencement Date, and thereafter at least
thirty (30) days before the expiration dates of expiring policies.

 

16.          Compliance with
Legal Requirements.

 

Tenant
shall promptly comply with all laws, statutes, ordinances and governmental
rules, regulations or requirements now in force or which may hereafter be in
force, with the requirements of any board of fire underwriters or other similar
body now or hereafter constituted, with any occupancy certificate or directive
issued pursuant to any law by any public officer or officers, as well as the
provisions of all recorded documents affecting the Demised Premises, insofar as
any thereof relate to or affect the condition, use or occupancy of the Demised
Premises, excluding requirements of structural changes not related to or affected
by improvements made by or for Tenant or not necessitated by Tenant’s act.
Landlord certifies to Tenant that to the best of Landlord’s actual knowledge,
the Demised Premises are in compliance with laws, including requirements of the
Americans With Disabilities Act.

 

17.          Assignment and
Subletting.

 

17.1         Except as expressly permitted pursuant
to this Article 17, Tenant shall not, without the prior written consent of
Landlord, assign, encumber or hypothecate this Lease or any interest herein or
sublet the Demised Premises or any part thereof, or permit the use of the
Demised Premises by any party other than Tenant.  This Lease shall not, nor shall any interest
herein, be assignable as to the interest of Tenant by operation of law without
the consent of Landlord. Sales aggregating fifty percent (50%) or more of the
capital or voting stock of Tenant (if Tenant is a nonpublic corporation) or
transfers aggregating fifty percent (50%) or more of Tenant’s partnership
interest (if Tenant is a partnership) shall be deemed to be an assignment of
this Lease. Notwithstanding the foregoing, sales of stock in an Initial Public
Offering (“IPO”) shall not be deemed to be an assignment of this Lease.

 

17.2         If at any time or from time to time
during the term of this Lease, Tenant desires to sublet all or any part of the
Demised Premises or to assign this Lease, Tenant shall give notice to Landlord
setting forth the proposed subTenant or assignee, the terms of the proposed
subletting and the space so proposed to be sublet or the terms of the proposed
assignment, as the case may be.  Landlord
shall have the option exercisable by notice given to Tenant within twenty (20)
days after Tenant’s notice is given, (a) if 

 

 

Tenant’s request relates to a subletting, either to
sublet from Tenant such space at the rental and other terms set forth in Tenant’s
notice, or, if the proposed subletting is for the entire Demised Premises for
the balance of the Term, to terminate this Lease or (b) if Tenant’s
request relates to an assignment, either to have this Lease assigned to
Landlord or to terminate this Lease.  If
Landlord does not exercise such option, Tenant shall be free for a period of
one hundred eighty (180) days thereafter to sublet such space or to assign this
Lease to such third party if Landlord shall consent thereto, provided that the
sublease or assignment shall be on the same terms set forth in the notice given
to Landlord and that the rental to such subTenant or assignee shall not be less
than the then market rate for such premises.

 

In the
event Tenant shall so sublet a portion of the Demised Premises, or assign this
Lease, all of the sums or other economic consideration received by Tenant as a
result of such subletting or assignment whether denominated rentals or
otherwise, under the sublease or assignment, which exceed in the aggregate, the
total sums which Tenant is obligated to pay Landlord under this Lease (prorated
the reflect obligations allocable to that portion of the Demised Premises
subject to such sublease) shall be payable to Landlord as additional rental
under this Lease without affecting or reducing any other obligation of Tenant
hereunder.

 

17.3         Notwithstanding the provisions of
Sections 17.1 and 17.2 hereof, Tenant may assign this Lease or sublet the
Demised Premises or any portion thereof, without Landlord’s consent and without
extending any option to Landlord, in connection with an IPO, to any corporation
which controls, is controlled by or is under common control with Tenant, or to
any corporation resulting from the merger or consolidation with Tenant, or to
any person or entity which acquires all the assets of Tenant as a going concern
of the business that is being conducted on the Demised Premises, provided that
said assignee assumes, in full, the obligations of Tenant under this Lease.

 

17.4         Regardless of Landlord’s consent, no
subletting or assignment shall release Tenant of Tenant’s obligation or alter
the primary liability of Tenant to pay the rental and to perform all other
obligations to be performed by Tenant hereunder.  The acceptance of rental by Landlord from any
other person shall not be deemed to be a waiver by Landlord or any provision
hereof. Consent to one assignment or subletting shall not be deemed consent to
any subsequent assignments or subletting. In the event of default of any of the
terms hereof, Landlord may proceed directly against Tenant without the
necessity of exhausting remedies against such assignee or successor. Landlord
may consent to subsequent assignment or subletting of this Lease or amendments
or modifications to this Lease with assignees of Tenant, without notifying
Tenant, or any successor of Tenant, and without obtaining its or their consent
thereto and such action shall not relieve Tenant of liability under this lease.

 

17.5         In the event Tenant shall assign this
Lease or sublet the Demised Premises or request the consent of Landlord to any
assignment or subletting or if Tenant shall 

 

 

request the consent of Landlord for any act that
Tenant proposes to do, then Tenant shall pay Landlord’s reasonable attorneys’
fees and processing fees incurred in connection therewith.

 

18.          Rules.

 

Tenant
shall faithfully observe and comply with the rules and regulations annexed
to this Lease as Exhibit “D” and, after notice
thereof, all reasonable modifications thereof and additions thereto from time
to time promulgated in writing by Landlord. Landlord shall not be responsible
to Tenant for the nonperformance by any other tenant or occupant of the
Building of any of such rules and regulations.

 

19.          Entry by Landlord.

 

19.1         Landlord and its designees may enter
the Demised Premises at reasonable hours to (a) inspect the same, (b) exhibit
the same to prospective purchasers, lenders or Tenants, (c) determine
whether Tenant is complying with all of its obligations hereunder, (d) supply
janitor service and any other services to be provided by Landlord to Tenant
hereunder, (e) post notices of nonresponsibility, and (f) make
repairs required of Landlord under the terms hereof or repairs to any adjoining
space or utility services or make repairs, alterations or improvements to any
other portion of the Building; provided, however, that all such work shall be
done as promptly as reasonably possible. 
Tenant hereby waives any claim for damages for any injury or
inconvenience to or interference with Tenant’s business, any loss of occupancy
or quiet enjoyment of the Demised Premises or any other loss occasioned by such
entry.

 

19.2         Landlord shall at all times have and
retain a key with which to unlock all of the doors in, on or about the Demised
Premises (excluding Tenant’s vaults, safes and similar areas designated in
writing by Tenant in advance); and Landlord shall have the right to use any and
all means which Landlord may deem proper to open said doors in any emergency in
order to obtain entry to the Demised Premises, and any entry to the Demised
Premises obtained by Landlord by any of said means, or otherwise, shall not
under any circumstances be construed or deemed to be a forcible or unlawful
entry into or a detainer of the Demised Premises or an eviction, actual or
constructive, of Tenant from the Demised Premises, or any portion thereof.

 

20.          Events of Default.

 

20.1         The occurrence of any one or more of
the following events (hereinafter referred to as “Events of
Default”) shall constitute a breach of this Lease by Tenant: (a) if
Tenant shall fail to pay the Basic Rental within three (3) days of when
and as the same becomes due and payable; or (b) if Tenant shall fail to
pay any other sum when and as the same becomes due and payable and such failure
shall continue for more than ten (10) days; or (c) if Tenant shall
fail to perform or observe any other term hereof or of the rules 

 

 

and regulations referred to in Section 2.5 or Article 18
hereof to be performed or observed by Tenant, such failure shall continue for
more than thirty (30) days after notice thereof from Landlord, and Tenant shall
not within such thirty (30) day period commence with due diligence and dispatch
the curing of such default, or, having so commenced, shall thereafter fail or
neglect to prosecute or complete with due diligence and dispatch the curing of
such default; or (d) if Tenant shall make a general assignment for the
benefit of creditors, or shall admit in writing its inability to pay its debts
as they become due or shall file a petition in bankruptcy, or shall be
adjudicated as insolvent or shall file a petition in any proceeding seeking any
reorganization, arrangements, composition, readjustment, liquidation,
dissolution or similar relief under any present or future statute, law or
regulation, or shall file an answer admitting or fail timely to contest or
acquiesce in the appointment of any trustee, receiver or liquidator of Tenant
or any material part of its properties; or (e) if within ninety (90) days
after the commencement of any proceeding against Tenant seeking any
reorganization, arrangement, composition, readjustment, liquidation,
dissolution or similar relief under any present or future statute, law or
regulation, such proceeding shall not have been dismissed, or if, within ninety
(90) days after the appointment without the consent or acquiescence of Tenant,
of any trustee, receiver or liquidator of Tenant or of any material part of its
properties, such appointment shall not have been vacated; or (f) if this
Lease or any estate of Tenant hereunder shall be levied upon under any
attachment or execution and such attachment or execution is not vacated within
ten (10) days.

 

20.2         If, as a matter of law, Landlord has no
right on the bankruptcy of Tenant to terminate this Lease, then, if Tenant, as
debtor, or its trustee wishes to assume or assign this Lease, in addition to
curing or adequately assuring the cure of all defaults existing under this
Lease on Tenant’s part on the date of filing of the proceeding (such assurances
being defined below), Tenant, as debtor, or the trustee or assignee must also
furnish adequate assurances of future performance under this Lease (as defined
below).  Adequate assurance of curing
defaults means the posting with Landlord of a sum in cash sufficient to defray
the cost of such a cure.  Adequate
assurance of future performance under this Lease means posting a deposit equal
to three (3) months rent, including all other charges payable by Tenant
hereunder, such as the amounts payable pursuant to Article 5 hereof, and,
in the case of an assignee, assuring Landlord that the assignee is financially
capable of assuming this Lease, and that its use of the Demised Premises will
not be detrimental to the other Tenants in the Building or Landlord. In a
reorganization under Chapter 11 of the Bankruptcy Code, the debtor or trustee
must assume this Lease or assign it within sixty (60) days from the filing of
the proceeding, or he shall be deemed to have rejected and terminated this
Lease.

 

21.          Remedies.

 

21.1         If any of the Events of Default shall
occur, then Landlord shall have the following remedies:

 

 

(a)           Landlord
at any time after the Event of Default, at landlord’s option, may give to
Tenant three (3) days notice of termination of this Lease, and in the
event such notice is given, this Lease shall come to an end and expire (whether
or not the Term shall have commenced) upon the expiration of such three (3) days,
but Tenant shall remain liable for damages as provided in Article 22
hereof.

 

(b)           Either
with or without terminating this Lease, Landlord may immediately or at any time
after the Event of Default or after the date upon which this Lease shall
expire, reenter the Demised Premises or any part thereof, without notice,
either by summary proceedings or by any other applicable action or proceeding,
or by force or otherwise (without being liable to indictment, prosecution or
damages therefor), and may repossess the Demised Premises and remove any and
all of Tenant’s property and effects from the Demised Premises.

 

(c)           Either
with or without terminating this Lease, Landlord may relet the whole or any
part of the Demised premises from time to rime, either in the name of Landlord
or otherwise, to such tenant or tenants, for such term or terms ending before,
on or after the Expiration Date, at such rental or rentals and upon such other
conditions, which may include concessions and free rent periods, as Landlord,
in its sole discretion, may determine. In the event of any such reletting,
Landlord shall not be liable for the failure to collect any rental due upon any
such reletting, and no such failure shall operate to relieve Tenant of any
liability under this Lease or otherwise to affect any such liability; and
Landlord may make such repairs, replacements, alterations, additions,
improvements, decorations and other physical Changes in and to the Demised
Premises as Landlord, in its sole discretion, considers advisable or necessary
in connection with any such reletting or proposed reletting, without relieving
Tenant of any liability under this Lease or otherwise affecting such liability.

 

(d)           Landlord
shall have the right to recover the rental and all other amounts payable by
Tenant hereunder as they become due (unless and until Landlord has terminated
this Lease) and all other damages incurred by Landlord as a result of an Event
of Default.

 

(e)           The
remedies provided for in this Lease are in addition to any other remedies
available to Landlord at law or in equity by statute or otherwise.

 

21.2         Each of Landlord and Tenant shall take
all reasonable actions to mitigate its respective damages resulting from a
breach of the other party.

 

22.          Termination upon
Default.

 

Should
Landlord at any time terminate this Lease for any reason, in addition to any
other remedies it may have, Landlord shall be entitled to recover from Tenant
the total of the amounts due under subparts (i), (ii), and (iii), being: (i) the
full amount of any 

 

 

rental and any other costs of charges arising under
this Lease that are due but unpaid at the time of termination; (ii) the
worth of the amount by which the unpaid rental which would have become due
after termination for the balance of the term of this Lease exceeds the
reasonable rental value of the Demised Premises for such period; and (iii) any
other amount necessary to compensate Landlord for all the detriment proximately
caused by Tenant’s failure to perform its obligations under this Lease or which
in the ordinary course of events would be likely to result from that failure
including but not limited to Landlord’s cost of recovering the Demised Premises
and reasonable attorneys’ fees.

 

23.          Landlord’s Right
to Cure Defaults.

 

All
covenants, terms and conditions to be performed by Tenant under any of the
terms of this Lease shall be at its sole cost and expense and without any
abatement of rental.  If Tenant shall
fail to pay any sum of money, other than Basic Rental, required to be paid by
it hereunder or shall fail to perform any other act on its part to be performed
hereunder and such failure shall continue for thirty (30) days after notice
thereof by Landlord, Landlord may, but shall not be obligated so to do, and
without waiving or releasing Tenant from any obligations of Tenant, make any
such payment or perform any such other act on Tenant’s part to be made or
performed as in this Lease provided.  All
sums so paid by Landlord and all necessary incidental costs shall be deemed
additional rental hereunder and shall be payable to Landlord on demand, and Landlord
shall have (in addition to any other right or remedy of Landlord) the same
rights and remedies in the event of the nonpayment thereof by Tenant as in the
case of default by Tenant in the payment thereof by Tenant as in the case of
default by Tenant in the payment of Basic Rental.

 

24.          Attorneys’ Fees.

 

If as
a result of any breach or default in the performance of any of the provisions
of this Lease, Landlord or Tenant uses the services of an attorney in order to
secure compliance with such provisions, the losing party shall pay the
prevailing party upon demand for any and all reasonable attorneys’ fees and
expenses so incurred by the prevailing party.

 

25.          Subordination.

 

25.1         This Lease is and shall be subject and
subordinate, at all times, to (a) the lien of any mortgage or mortgages
which may now or hereafter affect the Building, and to all advances made or
hereafter to be made upon the security thereof and to the interest thereon, and
to any agreements at any time made modifying, supplementing, extending or
replacing any such mortgages, and (b) any ground or underlying lease which
may now or hereafter affect the Building, including all amendments, renewals,
modifications, consolidation, replacements, and extensions thereof.  Notwithstanding the foregoing, at 

 

 

the request of the holder of any of the aforesaid
mortgage or mortgages or the lessor under the aforesaid ground or underlying
lease (hereinafter referred to as the “Holder”), this
Lease may be made prior and superior to such mortgage or mortgages and/or such
ground or underlying lease. In the event of the enforcement by the Holder of
the remedies provided for by law or in its mortgage or lease, Tenant will, upon
request of the Holder or any person succeeding to the interest of the Holder as
a result of such enforcement automatically become the Tenant of the Holder or
such successor in interest, without change in the terms or other provisions of
this Lease, provided, however, that neither the Holder nor such successor in
interest shall be bound by (i) any payment of Basic Rental or any other
sum payable hereunder for more than one (1) month in advance, except for
the Deposit, if any, or (ii) any amendment or modification of this Lease
made without the consent of the Holder or such successor in interest.  Upon request by the Holder or such successor
in interest, Tenant shall execute and deliver an instrument or instruments
confirming such attornment.  Landlord
agrees to use its best efforts to obtain from any such Holder a Non-Disturbance
agreement for Tenant.

 

25.2         At the request of Landlord, Tenant
shall execute and deliver such further instruments as may be reasonably
required to implement the provisions of this Article 25. Tenant hereby
irrevocably, during the term of this Lease, constitutes and appoints Landlord
as Tenant’s agent and attorney-in-fact to execute any such instruments if
Tenant shall fail or refuse to execute the same within ten (10) days after
notice from Landlord.

 

26.          Merger.

 

The
voluntary or other surrender of this Lease by Tenant, or a mutual cancellation
hereof, shall not work a merger, and shall, at the option of Landlord,
terminate all or any existing subleases or subtenancies, or may, at the option
of Landlord, operate as an assignment to it of any or all such subleases or
subtenancies.

 

27.          Nonliability of
Landlord.

 

27.1         In the event the Landlord hereunder or
any successor owner of the Building shall sell or convey the Building, all
liabilities and obligations on the part of the original Landlord or such
successor owner under this Lease accruing thereafter shall terminate, and
thereupon all such liabilities and obligations shall be binding upon the new
owner.  Tenant shall attorn to such new
owner.

 

27.2         Landlord shall not be responsible or
liable to Tenant for any loss or damage that may be occasioned by or through
the acts or omissions of persons occupying adjoining areas or any part of the
area adjacent to or connected with the Demised Premises or any part of the
Building or for any loss or damage resulting to Tenant or his property from
theft or a failure of the security systems in the Building, or for any damage
or loss of property within the Demised Premises from any other cause
whatsoever, and no 

 

 

such occurrence shall be deemed to be an actual or
constructive eviction from the Demised Premises or result in an abatement of
rental.

 

27.3         If Landlord shall fail to perform any
covenant, term or condition of this Lease upon Landlord’s part to be performed,
and, if as a consequence of such default, Tenant shall recover a money judgment
against Landlord, such judgment shall be satisfied only against the right,
title and interest of Landlord in the Building and out of rents or other income
from the Building receivable by Landlord, or out of the consideration received
by Landlord from the sale or other disposition of all or any part of Landlord’s
right, title and interest in the Building, and Landlord shall not be liable for
any deficiency.

 

28.          Estoppel
Certificate.

 

At any
time and from time to time upon ten (10) days prior request by Landlord,
Tenant will promptly execute, acknowledge and deliver to Landlord, a
certificate indicating (a) that this Lease is unmodified and in full force
and effect (or, if there have been modifications, that this Lease is in full
force and effect, as modified, and stating the date and nature of each
modification), (b) the date, if any, to which rental and other sums
payable hereunder have been paid, (c) that no notice has been received by
Tenant of any default which has not been cured, except as to defaults specified
in said certificate, and (d) such other matters as may be reasonably
requested by Landlord.  Any such
certificate may be relied upon by any prospective purchaser, mortgagee or
beneficiary under any deed of trust of the Building or any part hereof.

 

29.          No Light, Air or
View Easement.

 

Any
diminution for shutting off of light, air or view by any structure which may be
erected on lands adjacent to the Building shall in no way affect this Lease or
impose any liability on Landlord.

 

30.          Holding Over.

 

If
Tenant holds possession of the Demised Premises beyond the expiration of the
Term, such continued possession by Tenant shall not have the effect of
extending or renewing the Term for any period of time and Tenant shall be
presumed to occupy the Demised Premises against the will of Landlord who shall
thereupon be entitled to all remedies provided for the expulsion of Tenant,
including all claims for loss and damage; provided, however, that Landlord may,
at its option, give to Tenant at any time during such continued possession by
Tenant written notice that Tenant may continue to occupy the Demised Premises
under a tenancy from month to month and otherwise under such terms and
conditions except for rental which shall be one hundred fifty (150%) percent of
Tenant’s monthly rental during the last month of the Lease Term as the same may
have 

 

 

been extended. 
In the event Landlord tenders such notice to Tenant, then Tenant shall
not be in default of the Lease as a result of such holdover.

 

31.          Abandonment.

 

If
Tenant shall abandon or surrender the Demised Premises, or be dispossessed by
process of law or otherwise, any personal property belonging to Tenant and left
on the Demised Premises shall be deemed to be abandoned, or, at the option of
Landlord, may be removed by Landlord at Tenant’s expense.

 

32.          Security Deposit.  [Intentionally deleted].

 

33.          Waiver.

 

33.1         The waiver by Landlord of any
agreement, condition or provision herein contained shall not be deemed to be a
waiver of any subsequent breach of the same or any other agreement, condition
or provision herein contained, nor shall any custom or practice which may grow
up between the parties in the administration of the terms hereof be construed
to waive or to lessen the right of Landlord to insist upon the performance by
Tenant of the terms hereof in strict accordance with said terms.  The subsequent acceptance of rental hereunder
by Landlord shall not be deemed to be a waiver of any preceding breach by
Tenant of any agreement, condition or provision of this Lease, other than the
failure of Tenant to pay the particular rental so accepted, regardless of
Landlord’s knowledge of such preceding breach at the time of acceptance of such
rental.

 

33.2         Landlord and Tenant hereby waive trial
by jury in any action proceeding, or counterclaim brought by Landlord or Tenant
against the other on any matter whatsoever arising out of or in any way
connected with this Lease, the relationship of Landlord to Tenant, the use or
occupancy of the Demised Premises by Tenant or any person claiming through or
under Tenant, any claim of injury or damage, and any emergency or other
statutory remedy; provided, however, the foregoing waiver shall not apply to
any action for personal injury or property damage.  If Landlord commences any summary or other
proceeding for nonpayment of rent or the recovery of possession of the Demised
Premises, Tenant shall not interpose any counterclaim of whatever nature or
description in any such proceeding, unless the failure to raise the same would
constitute a waiver thereof.

 

34.          Notices.

 

All
notices, consents, requests, demands, designations or other communications
which may or are required to be given by either party to the other hereunder
shall be in writing and shall be deemed to have been duly given when personally
delivered or deposited in the United States mail, certified or registered,
postage prepaid, and addressed as follows: to Tenant at the address set forth
in Section 1(m) hereof, or to such 

 

 

other place as Tenant may from time to time designate
in a notice to Landlord; to Landlord at the address set forth in Section l(n)
hereof, or to such other place as Landlord may from time to time designate in a
notice to Tenant; or, in the case of Tenant, delivered to Tenant at the Demised
Premises.  In the event a Guarantor is
listed in Section 1(o) hereof and such Guarantor executes this Lease,
Landlord shall forward copies of all notice of default hereunder to the
Guarantor at the address set forth in Section 1(p) hereof.

 

35.          Guaranty.  [Intentionally deleted].

 

36.          Complete Agreement.

 

There
are no oral agreements between Landlord and Tenant affecting this Lease, and
this Lease supersedes and cancels any and all previous negotiations,
arrangement, brochures, agreements and understandings, if any, between Landlord
and Tenant or displayed by Landlord to Tenant with respect to the subject
matter of this Lease or the Building. 
There are no representations between Landlord and Tenant other than
those contained in this Lease and all reliance with respect to any
representations is solely upon such representations.

 

37.          Corporate
Authority.

 

If
Tenant signs as a corporation, each of the persons executing this Lease on
behalf of Tenant does hereby covenant and warrant that Tenant is a fully
authorized and existing corporation, that Tenant has and is qualified to do
business in Michigan, that the corporation has full right and authority to
enter into this Lease, and that each and all of the persons signing on behalf
of the corporation are authorized to do so.

 

38.          Inability to
Perform.

 

If, by
reason of the occurrence of unavoidable delays due to acts of God, governmental
restrictions, strikes, labor disturbances, shortages of materials or supplies
or for any other cause or event beyond Landlord’s reasonable control, Landlord
is unable to furnish or is delayed in furnishing any utility or service
required to be furnished by Landlord under the provisions of Article 8
hereof or any other provisions of this Lease or any collateral instrument, or
is unable to perform or make or is delayed in performing or making any
installations, decorations, repairs, alterations, additions, or improvements,
whether required to be performed or made under this Lease or under any
collateral instrument, or is unable to fulfill or is delayed in fulfilling any
of Landlord’s other obligations under this Lease or any collateral instrument,
no such inability or delay shall constitute an actual or constructive eviction
in whole or in part, or entitle Tenant to any abatement or diminution of rental
or other charges due hereunder or relieve Tenant from any of its obligations
under this Lease, or impose any liability upon Landlord or its agents 

 

 

by reason of inconvenience or annoyance to Tenant, or
injury to or interruption of Tenant’s business, or otherwise.

 

39.          Covenant of Quiet
Enjoyment.

 

Upon
Tenant paying the rental and other charges due hereunder and performing all of
Tenant’s obligations under this Lease, Tenant may peacefully and quietly enjoy
the Demised Premises during the term of this lease; subject, however, to the
Provisions of this Lease and to any mortgages or ground or underlying leases
referred to in Article 25 hereof.

 

40.           Parking.

 

                All tenants shall be entitled to
the non-exclusive use of the exterior on-grade parking areas (“Parking Area”).  The
Parking Area shall be allocated among the tenants in the proportion which the
rentable area of space in the Building such tenant leases bears to all the
rentable space in the Building.  Landlord
shall enforce the allocation for the benefit of all tenants by appropriate
means including the towing of vehicles.

 

41.          Signage.

 

Subject
to Landlord’s prior written approval, Tenant shall be entitled to have its name
on the directory in the lobby of the Building, as well as adjacent to the main
entry door of the Demised Premises, in both instances at Landlord’s cost and
expense so long as all such signage is Building Standard.

 

42.          Miscellaneous.

 

42.1         The words “Landlord” and “Tenant” as
used herein shall include the plural as well as the singular.  If there is more than one Tenant, the
obligations hereunder imposed upon Tenant shall be joint and several.

 

42.2         Submission of this instrument for
examination or signature by Tenant does not constitute a reservation of or option
for lease, and it is not effective as a lease or otherwise until execution and
delivery by both landlord and Tenant.

 

42.3         The agreements, conditions and
provisions herein contained shall, subject to the provisions as to assignment,
set forth in Article 17 hereof, apply to and bind the heirs, executors,
administrators, successors and assigns of the parties hereto.

 

42.4         Tenant shall not without the consent of
Landlord, use the name of the Building for any purpose other than as the
address of the business to be conducted by Tenant in the Demised Premises.  Landlord reserves the right to select the
name of the Building and to make such changes of name as it deems appropriate
from time to time.

 

 

42.5         If any provisions of this Lease shall
be determined to be illegal or unenforceable, such determination shall not
affect any other provisions of this Lease and all such other provisions shall
remain in full force and effect.

 

42.6         This Lease shall be governed by and
construed pursuant to the laws of the State of Michigan.

 

[Remainder of page intentionally
left blank]

 

 

[Signature page to
Lease between Evergreen Atrium and Proforma Corp.]

 

IN
WITNESS WHEREOF, the parties hereto have executed this Lease as of the date set
forth in Section 1(a).

 

	
  WITNESSES:

  	
   

  	
  EVERGREEN  ATRIUM,  L.L.C.,  a

  Michigan limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Caussa A. Morelli

  	
   

  	
  By:

  	
  /s/ Douglas M. Etkin

  
	
   

  	
   

  	
   

  	
  Douglas M. Etkin

  
	
   

  	
   

  	
   

  	
   

  
	
  Caussa A. Morelli

  	
   

  	
  Its:

  	
  Authorized Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “Landlord”

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PROFORMA  CORPORATION,
   a

  Michigan Corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Kathy Repke

  	
   

  	
  By:

  	
  /s/ Ronald Pellegrino

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Officer Manager

  	
   

  	
  Its:

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “Tenant”

  
						

 

 

 

EXHIBIT A

 

 

 

EVERGREEN ATRIUM

 

EXHIBIT “B” 

SPACE PLAN

 

[Intentionally
Deleted]

 

 

EVERGREEN
ATRIUM

 

EXHIBIT “C”

JANITORIAL
SERVICES

DAILY SERVICE - 5
DAYS PER WEEK

 

Building Entry,
Corridors, Lobbies, Stairwells, Elevators- All Other Common Areas

 

1.                                       Empty
and clean all ashtrays and cigarette urns.

2.                                       Empty
all waste containers, clean if necessary; place all debris in dumpster.

3.                                       Vacuum
all carpeted areas.

4.                                       Sweep
and/or dust mop all tile floor areas with treated cloths using dust control
method.

5.                                       Damp
mop all tile and marble areas.

6.                                       Clean
and disinfect all drinking fountains.

7.                                       Spot
clean fingerprints, smudges, etc., from walls.

8.                                       Spot
clean building entry doors and surrounding glass.

9.                                       Vacuum
and clean lobby furniture and planters.

10.                                 Sweep
area around building entry, pick up debris from entry and surrounding landscape
areas (within six feet of entry walk).

 

Lavatories

 

1.                                       Mop,
clean, and disinfect all tile floors with germicidal cleanser.

2.                                       Spot
clean all walls and toilet partitions.

3.                                       Clean
and polish all wall and cabinet mirrors.

4.                                       Clean
and sanitize toilet bowls, urinals, and sinks; also clean and polish all chrome
fixtures.

5.                                       Replenish
towels, toilet tissue, hand soap, and sanitary napkin dispensers.

6.                                       Empty
and clean all waste containers.

7.                                       Empty
and clean all ashtrays and cigarette urns.

8.                                       Vacuum
and clean womens’ lounge couch.

 

Office
Space

 

1.                                       Empty
and clean all ashtrays and cigarette urns.

2.                                       Empty
all waste containers, clean if necessary; place all debris in dumpster.

3.                                       Vacuum
all carpeted areas, including closets, file rooms, etc.

4.                                       Sweep
and/or dust mop all tile, parquet, or other hard surface floor areas with
treated cloths using dust control method.

 

 

5.                                       Dust
all office furniture completely.  Dust
all lamps, window sills, ledges, door moldings, telephones, pictures, plaques,
bookcases, etc., with treated cloths. 
NOTE: Desks covered with paper, charts, etc., will not be touched so as
to prevent misplacement, loss, or damage.

6.                                       Spot
clean entrance door and clean all glass partitions and tops as necessary.

7.                                       Turn
off all lights, report lights left on with Tenant space unoccupied.

 

WEEKLY SERVICE

 

Office
Space

 

1.                                       Vacuum
all upholstered furniture.

2.                                       Spot
clean carpeting.

3.                                       Clean
and polish parquet floors.

 

Lavatories

 

1.                                       Clean
and disinfect all ceramic tile walls and toilet partitions.

 

Building
Entry, Corridors, Lobbies, Stairwells, Elevators - All Other Common Areas

 

1.                                       Spot
clean carpeting.

2.                                       Wet
mop and polish all tile and marble floors.

3.                                       Wash
and clean building entry doors and surrounding glass.

 

MONTHLY SERVICE

 

Office Space

 

1.                                       Furniture,
such as tables and cabinets placed against wall, to be moved and area behind
cleaned and vacuumed.

2.                                       Spot
clean fingerprints, smudges, etc., from light switches, door jambs, doors, etc.

 

SEMI-ANNUAL
SERVICE

 

1.                                       Shampoo
carpet in all common areas of the Building.

2.                                       Vacuum
clean all draperies on a rotating basis.

3.                                       Clean
interior and exterior surfaces of Building windows.

 

 

EVERGREEN
ATRIUM

 

EXHIBIT “D”

BUILDING RULES AND
REGULATIONS

 

(A)                              Any
sign, lettering, picture, notice or advertisement installed within the Demised
Premises which is visible from the public corridors within the Building shall
be installed in such manner and be of such character and style as Landlord shall
approve in writing.  No sign, lettering,
picture, notice or advertisement shall be placed on any outside window or in a
position to be visible from outside the Building.

 

(B)                                Tenant
shall not obstruct sidewalks, entrances, passages, courts, corridors, vestibules,
halls, elevators and stairways in or about the Building, nor shall Tenant place
objects against glass partitions, doors or windows which would be unsightly
from the Building’s corridors, or from the exterior of the Building.

 

(C)                                No
animals or pets or bicycles or other vehicles shall be brought or permitted to
be in the Building or the Demised Premises.

 

(D)                               Tenant
shall not make excessive noises, cause disturbances or vibrations, or use or
operate any musical, electrical or electronic devices or other devices that
emit loud sounds or waves which may disturb or annoy other Tenants or occupants
of the Building.

 

(E)                                 Vending
machines will not be permitted to be installed by anyone but the Landlord.

 

(F)                                 Tenant
shall lock exterior doors to the Building when entering or leaving after 5:30 p.m.
daily and between noon Saturday and 8:00 a.m. on Monday.

 

(G)                                There
will be no parking of vehicles in any area of the Development other than those
areas clearly marked and defined for parking. 
Cars parked illegally or blocking the service area or in the driveways
will be towed at the car owner’s expense.

 

(H)                               Tenant
shall not make any room-to-room canvass to solicit business from other Tenants
of the Building and shall cooperate to prevent same.

 

(I)                                    Tenant
shall not create any odors which may be offensive to other Tenants or occupants
of the Building.

 

(J)                                   Tenant
shall not waste electricity, water or air conditioning, and shall cooperate
fully with Landlord to assure the most effective operation of the Building’s heating
and air conditioning.  Tenant shall not
adjust any controls other than room thermostats installed for Tenant’s
use.  Tenant shall not tie, wedge, or
otherwise fasten open any water faucet or outlet.  Tenant shall keep all corridor doors closed.

 

 

(K)                               No
additional locks or similar devices shall be attached to any door and no locks
shall be changed except by Landlord. 
Upon termination of this Lease or of Tenant’s possession of the Demised
Premises, Tenant shall surrender all keys for door locks and other locks in or
about the Demised Premises and shall make known to Landlord the combination of
all locks, safes, cabinets and vaults which are not removed by Tenant.

 

(L)                                 Tenant
assumes full responsibility for protecting the Demised Premises from theft,
robbery and pilferage.  Except during
Tenant’s normal business hours, Tenant shall keep all doors to the Demised
Premises locked and other means of entry to the Demised Premises closed and
secured.

 

(M)                            Tenant
shall not install or operate any machinery or mechanical devices of a nature
not directly related to Tenant’s ordinary use of the Demised Premises for
general office purposes.

 

(N)                               Tenant
shall not employ any person to perform any cleaning, repairing, janitorial,
decorating, painting, or other services or work in or about the Demised
Premises, except with the approval of Landlord, which approval shall not be
unreasonably withheld.

 

(O)                               Tenant
shall ascertain from Landlord the maximum amount of electrical current which
can safely be used in the Demised Premises, taking into account the capacity of
the electric wiring in the Building and the Demised Premises and the needs of
other Tenants, and shall not use more than such safe capacity.  Landlords’ consent to the installation of
electric equipment shall not relieve Tenant from the obligation not to use more
electricity than such safe capacity.

 

(P)                                 Tenant
shall not overload any floor and shall not install any heavy objects, safes,
business machines, files or other equipment without having received Landlord’s
prior written consent as to size, maximum weight, routing and location
thereof.  Safes, furniture, equipment,
machines and other large or bulky articles shall be brought through the
Building and into and out of the Demised Premises at such times and in such
manner as the Landlord shall direct (including the designation of an elevator)
and at Tenant’s sole risk and responsibility. 
Prior to Tenant’s removal of any such articles from the Demised
Premises, Tenant shall obtain written authorization therefor at the Office of
the Building and shall present such writing, upon request, to a designated
employee of Landlord.

 

(Q)                               Tenant
shall not in any manner deface or damage the Building.

 

(R)                                Tenant
shall not bring into the Building or Demised Premises inflammable such as
gasoline, kerosene, naphtha and benzine, or explosive or any other articles of
an intrinsically dangerous nature.

 

 

(S)                                 Movement
in or out of the Building of furniture or office equipment or dispatch or
receipt by Tenant of any merchandise or materials other than hand delivered
packages, which requires the use of elevators or stairways or movement through
the Building entrances or lobby, shall be restricted to the hours designated by
Landlord and in a manner to be agreed upon between Tenant and Landlord by
prearrangement before performance. 
Tenant assumes all risk of damage to any and all articles so moved, as
well as injury to any person or property in such movement, and hereby agrees to
indemnify Landlord against any loss resulting therefrom.

 

(T)                                Landlord
shall not be responsible for any lost or stolen property, equipment, money or
jewelry from the Demised Premises or the public areas of the Building
regardless of whether such loss occurs when the Demised Premises are locked or
not.

 

(U)                               No
food for consumption or distribution outside the Demised Premises shall be
prepared or cooked in the Demised Premises, and the Demised demises shall not
be used for housing, lodging, sleeping or for any immoral or illegal purpose.

 

(V)                                The
work of the janitor or cleaning personnel shall not be hindered by Tenant after
5:30 p.m., and the windows may be cleaned at any time.  Tenant shall provide adequate waste and
rubbish receptacles to prevent unreasonable hardship to Landlord in discharging
its obligation regarding cleaning services.

 

(W)                           Tenant
will refer all contractors and installation technicians rendering any service
for Tenant for supervision and approval before performance of any contractual
services. Tenant will not permit any construction liens to be placed against
the Demised Premises or the Development and any contract Tenant enters into for
work to be performed on the Demised Premises or the Development will contain a
waiver of construction lien.

 

(X)                               Smoking
is not permitted in the common areas of the Building unless a specific area is
designated for such purpose.

 

Tenant
shall be responsible for the observance of all of the foregoing rules and
regulations by Tenant’s employees and agents. 
Landlord shall not be liable for any violation of the foregoing rules and
regulations by other Tenants of the Building but Landlord shall use its best
efforts to enforce the same against other Tenants.

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