Document:

Exhibit
10.18.1

 

FIRST
AMENDMENT TO LEASE

 

This First Amendment to Office Lease (“First
Amendment”) is dated for reference purposes this 17th day of March,
2003, between SOFI IV SIM OFFICE INVESTORS II, L.P., a Delaware limited
partnership (“Landlord”) and ESCHELON TELECOM, INC., a Delaware corporation,
formerly known as Advanced Telecommunications, Inc., a Delaware corporation
(“Tenant”).

 

RECITALS

 

Landlord and Tenant entered into that certain Office
Lease, dated December 1, 1999 the “Lease”,, covering the office space
located at the 2600 Tower, located at 2600 North Central Avenue, Phoenix,
Arizona, 85004 (the “Project”), identified as Suite 500 consisting of
approximately 6,028 square feet, reduced pursuant to this First Amendment to
5,545 square feet (the “Existing Premises”).

 

Pursuant to this First Amendment, Tenant wishes to
lease an additional approximately 9,391 rentable square feet located adjacent
to the Existing Premises (the “Additional Premises”) for a’ period of five (5)
years and eight (8) months. Commencing on the Additional Premises Commencement
Date (as defined below), all references to the “Premises” in the Lease and this
First Amendment shall be deemed to refer collectively to the Existing Premises
and the Additional Premises. The Lease and this First Amendment are
collectively referred to as the “Lease”. Upon the terms and conditions
contained herein, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, Landlord and Tenant agree the
Lease is amended as follows:

 

AGREEMENT

 

1.                                       Effective
Date. The effective date of the Lease amendments set out in this First
Amendment is March 17, 2003 (the “Effective Date”).

 

2.                                       Defined
Terms. Capitalized terms used but not defined herein shall have the
meanings ascribed to them in the Lease.

 

3.                                       Revised
Summary of Basic Terms. Article I “Summary of Basic Terms” of the
Lease is hereby amended and restated in its entirety with the amended and
restated Article I “Summary of Basic Terms” attached as Schedule 1
attached hereto and incorporated herein by reference.

 

4.                                       Lease-of
Additional Premises. Upon and subject to the terms and conditions as set
forth in this First Amendment and the Lease, Landlord hereby leases to Tenant
and Tenant hereby leases from Landlord those certain premises consisting of
approximately 9,391 rentable square feet located on the fifth floor adjacent to
the Existing Premises, as depicted on Schedule 2 attached hereto and
incorporated by this reference and described herein as the Additional Premises.
The term of the Lease, as it applies to the Additional Premises, shall commence
upon the earlier of (a) the date of Substantial Completion of the Additional
Premises Tenant Improvements, which is currently estimated to be June 1,
2003 (the “Delivery Date”); (b) the date Tenant commences business operations
in the Additional Premises; or (c) the date Substantial Completion of the
Additional Premises Tenant Improvements would have occurred but for Tenant
Delay (the foregoing terms are defined in Exhibit A). If Landlord does not
tender

 

 

possession of the Additional Premises to Tenant on or
before the Delivery Date, subject to Force Majeure and Tenant Delay, Landlord
will pay to Tenant an amount equal to $17,897.00 (the “Penalty Fee”) in cash within
thirty (30) days of the Delivery Date. If Landlord is unable to tender
possession of the Premises to Tenant on or before the Delivery Date, the Lease,
as it applies to the Additional Premises, remains in full force and effect and
Landlord is not liable to Tenant for any resulting loss or damage, except for
the payment of the Penalty Fee; provided, however, that unless the delay is
caused by Tenant Delay, Additional Premises Base Rent shall abate on a
day-for-day basis for those days (after the Delivery Date) during which
Landlord is unable to tender possession of the Additional Premises to Tenant.
The expiration date of the Lease, as it applies to the Additional Premises,
shall expire on February 1, 2009, unless sooner terminated pursuant to the
provisions of the Lease (the “Additional Premises Termination Date”). The
“Additional Premises Term” of the Lease shall commence on the Additional
Premises Commencement Date and terminate on the Additional Premises Termination
Date.

 

5.                                       Additional
Premises Tenant Improvements. Tenant acknowledges, represents and agrees to
the following: (i) Tenant shall be responsible for making its own inspection
and investigation of the Additional Premises and other portions of the
Building, (ii) Tenant shall be responsible for investigating and establishing
the suitability of the Additional Premises for Tenant’s intended use thereof,
and all zoning and regulatory matters pertinent thereto, (iii) Tenant is
leasing the Additional Premises “AS IS” based on its own inspection and investigation
after the expiration of the thirty (30) day “punch list” period and not in
reliance on any statement, representation, inducement or agreement of Landlord
or its agents, employees or representatives, except as expressly set forth
elsewhere in the Lease, (iv) the Additional Premises, upon the earlier of
Tenant’s possession or Tenant’s entry into the Additional Premises to construct
or install improvements, were in good order and satisfactory condition, and (v)
no rights to light or air over any property, whether belonging to Landlord or
any other person, are granted to Tenant by this Lease.

 

Landlord shall perform the demolition, remodeling,
replacement and/or installation work provided for on Exhibit A attached hereto
(“Additional Premises Tenant Improvements”). For the purposes of the Lease, as
it applies to the Additional Premises, possession of the Additional Premises
shall be deemed delivered or tendered to Tenant, and accepted by Tenant
(subject to Landlord’s obligation to complete Punch List items), upon
Substantial Completion (as those terms are defined in Exhibit A) and Landlord
has given Tenant written notice thereto.

 

6.                                       Parking.
Article 3.9 of the Lease is hereby amended and replaced with the
following:

 

Existing Premises:

 

	
  # of Parking Area

  Spaces

  	
   

  	
  Price per
  Space

  	
   

  	
  Total

  Price

  	
   

  
	
  Up
  to open unreserved 6

  	
   

  	
  @ then current
  building rates

  	
   

  	
   

  	
   

  

 

 

Additional Premises:

 

Landlord shall license vehicle parking spaces to
Tenant and Tenant’s business on the following terms and conditions:

 

Landlord shall provide
eight (8) vehicular parking spaces as exclusive parking spaces for Tenant and
its employees in the parking garage portion of the Office Complex (“Reserved
Covered Spaces”). This license is for Reserved Covered Spaces in the general
parking area to be designated and redesignated from time to time by Landlord;
provided, however, Landlord may require Tenant to park in a specific location.
Landlord shall not be liable to Tenant for the failure of any of its tenants,
invitees, employees, agents or customers or any third parties to comply with
the   designation of the Reserved Covered Spaces.

 

Landlord shall provide
thirty-two (32) vehicular parking spaces on a covered unreserved basis for
Tenant and its employees in the unreserved portion of the parking garage
portion of the Office Complex (the “Unreserved Covered Spaces”). This license
is for Unreserved Covered Spaces in the general parking area to be designated
and redesignated from time to time by Landlord; provided, however, Landlord may
require Tenant to park in a specific location. Landlord shall not be liable to
Tenant for the failure of any of its tenants, invitees, employees, agents or
customers or any third parties to comply with the designation of the Unreserved
Covered Spaces.

 

Landlord shall provide
ten (10) vehicular parking spaces on an unreserved basis for Tenant and its
employees in the surface parking facility serving the Office Complex (“Surface
Spaces”). This license is for Surface Spaces in the unreserved portion of the
surface parking lot to be designated and redesignated from time to time by
Landlord; provided, however, Landlord may require Tenant to park in a specific
location. Landlord shall not be liable to Tenant for the failure of any of its
tenants, invitees, employees, agents or customers or any third parties to
comply with the designation of the Surface Spaces.

 

The parking fees for the
Reserved Covered Spaces, the Unreserved Covered Spaces and the Surface Spaces,
as they relate to the Additional Premises, shall be abated for the first
forty-one (41) months of the Additional Premises Term hereof; provided,
however, that all other charges related to parking (such as charges for parking
garage access devices and name plates for reserved spaces) shall be paid for by
Tenant upon receipt of invoice from Landlord. Thereafter, Tenant agrees to pay
as a monthly fee for such license of parking spaces payable on or before the
first day of each month in advance as follows: during the last twenty-four (24)

 

 

months of the Additional Premises Tenn, $1,000.00 each
month for the parking spaces relating to the Additional Premises. Tenant shall
be entitled to fifty (50) hours of parking validation each month for the
Additional Premises Term at no charge to Tenant. If the Lease, as it relates to
the Additional Premises, is terminated for any reason, the Tenant’s license as
to the parking spaces relating to the Additional Premises shall be immediately
revoked.

 

Only vehicles designated
by Tenant to Landlord may be parked or stored therein; provided, however, that
Tenant may change its automobile designations at any time upon written notice
to Landlord or for temporary use upon notification given . to the garage
attendant, if any. No more than one automobile per space licensed hereunder shall
be parked or stored under Tenant’s rights hereunder at any one time.

 

This license is for
self-service storage or parking only and does not include the rights to any
additional services, which services may be made available by Landlord from time
to time at an additional charge.

 

It is understood that
Landlord and its agents and employees shall not be liable for loss or damage to
any vehicle parked or stored by Tenant or under Tenant’s rights herein and/or
to the contents thereof caused by fire, theft, explosion, freezing of
circulation system of any automobile, strikes, riots or by any other causes and
Tenant (1) waives any claim against Landlord for and in respect thereto, and
(2) hereby agrees to indemnify and defend Landlord against all claims for any loss
or damage to any such vehicle or its contents from any cause whatsoever. It is
further expressly understood that. the relationship between Landlord
and Tenant with respect to the parking spaces constitutes a license to use said
garage subject to the terms and conditions herein only and that neither such
relationship nor the storage or parking of any automobile thereunder shall
constitute a bailment nor create the relationship of bailor and bailee.

 

In the event the garage
referenced shall be damaged by fire or other casualty rendering it unusable by
Tenant, the fee provided for herein shall be abated (pro rata based on the
portion of the Tenant’s stalls which are unusable) from the date ten (10) days
after the date the garage becomes unusable until it again becomes usable.
Further, if all or any part of the garage is taken by eminent domain
proceedings, Landlord shall be entitled to all of the award in the proceedings
and may terminate this parking arrangement in the event of a total taking or
reduce the number of stalls licensed hereunder in proportion to the extent of
any partial taking upon

 

 

written notice to Tenant. If the garage is damaged by
fire or other casualty, Landlord will cause it to be repaired with due
diligence.

 

Subject to the abatement
provided for in the preceding paragraph, Landlord shall have the right to close
any portion of the garage and deny access thereto in connection with any
repairs or in an emergency, as it may require, without liability, cost or
abatement of fee.

 

Tenant shall perform,
observe and comply with such rules of the Office Complex as may be reasonably
adopted by Landlord in respect to the use and operation of said garage.

 

Tenant shall, when using
the parking facilities of said garage, observe and obey all signs regarding
fire lanes and no parking zones, and when parking always park between
designated lines. Landlord reserves the right to tow away, or otherwise
impound, at the expense of the owner or operator, any vehicle which is
improperly parked or parked in a no parking zone.

 

In the event a key or other access device is supplied
by Landlord to Tenant in connection with the rights granted herein, Tenant will
surrender such key or access device to Landlord upon termination of this Lease.

 

7.                                       Right
to Terminate. Provided that the Lease is then in full force and effect and
Tenant is not in default, on the date of exercise of this Option, after notice
and the expiration of any applicable grace period, Tenant may terminate the
Lease, as it applies to the Additional Premises, as of the last day of the 44`h
month following the Additional Premises Commencement Date (the “Early
Termination Date”) subject to and in accordance with this Section 7. To
exercise such termination right, Tenant must (a) deliver written notice to
Landlord that Tenant desires to terminate the Lease, as it applies to the
Additional Premises, as of the Early Termination Date at least ninety (90) days
prior to the Early Termination Date; and (b) immediately pay Landlord a
payment, as each relates to the Additional Premises, equal to Landlord’s then
unamortized costs of the Additional Premises Tenant Improvements, moving
allowance, leasing commissions and two (2) months Additional Premises Base Rent
at the rate then in effect. If Tenant terminates the Lease, as it applies to
the Additional Premises, Landlord, at its sole cost and expense, shall restore
that portion of the demising wall that separated the Existing Premises from the
Additional Premises to its condition existing prior to the construction of the
Additional Premises and Tenant agrees to allow Landlord to temporarily occupy
the Existing Premises in order to accomplish such construction.

 

8.                                       Tenant’s
Option to Renew the Additional Premises Term.

 

(A) Provided that the Lease is then in full force and
effect and Tenant is not in default, on the date of exercise of this Option,
after notice and the expiration of any applicable grace period, Tenant shall
have the option to extend the Additional Premises Term of the Lease for one

 

 

(1) period of three (3) years (the “Additional
Premises Extension Term”) by notice. given to Landlord at least four (4), but
no more than twelve (12), months prior to the termination of the Additional
Premises Term. The Additional Premises Extension Term shall commence on the
first day after the initial Additional Premises Term and shall expire on the
third (3`d) anniversary of such day unless the Additional Premises
Extension Term shall sooner end pursuant to the Lease.

 

(B) The terms and conditions shall be identical to those
in the Lease that relate to the Additional Premises except for the rental rate,
which shall be determined in accordance with Article 26.13 (1)(A) of the
Lease.

 

9.                                       Tenant’s
Option to Renew the Existing Premises Term: Article 26.13(1)(A) of the
Lease is hereby amended and replaced with the following:

 

(A) Provided that the Lease is then in full force and
effect and Tenant is not in default, on the date of exercise of this Option,
hereunder after notice and the expiration of any applicable grace period,
Tenant shall have the option to extend the Term for two (2) additional periods
of five (5) years each (the “Extension Term(s)”) by notice given to Landlord at
least four (4), but no more than twelve (12), months prior to the termination
of the Term. The Extension Term(s) shall commence on the day after the initial
Lease term and the prior Extension Term (if any) expires (“Expiration Date(s)”)
and shall expire on the fifth (5th) anniversary of the Expiration
Date(s) unless the Extension Term(s) shall sooner end pursuant to this Lease.

 

10.                                 Signage.
Article 14 of the Lease is hereby amended and replaced with the following:

 

ARTICLE 14. SIGNS

 

Landlord to provide to Tenant (a) one building
standard tenant identification sign adjacent to the entry door of the Premises
and (b) standard building directory listings on the directories in the main
lobby. In the event Landlord installs an exterior monument sign and provided
Tenant, at its sole cost and expense, receives all necessary governmental and
quasi-governmental approvals therefore, Landlord will allow Tenant, at Tenant’s
sole cost and expense, to install one non-illuminated sign on such exterior
monument sign, which sign will be Tenant’s name, “subordinate” to Landlord’s
building designation sign, if any. Tenant must pay all governmental and other
permit fees at its sole cost and expense, must remove same prior to termination
of the Lease, and must repair and restore any damage to the Building caused by
such installation and/or removal. Any such sign and the display of Tenant’s
name thereon will be subject to the terms of any restrictive covenants
applicable thereto and all laws.

 

11.                                 HVAC.
Article 27(A) of the Lease is hereby amended with the addition of the
following:

 

Subject to limitations imposed by governmental rules,
regulations and guidelines applicable thereto, Landlord shall provide HVAC when
necessary for normal comfort and normal office use in the Premises during
Normal Business Hours. If

 

 

Tenant uses HVAC in excess of that supplied by
Landlord pursuant to this Article 27(A), Tenant shall pay to Landlord,
upon billing, the actual cost of such of such excess consumption, provided,
however, that after-hours HVAC usage shall be billed to Tenant based upon rates
as reasonably established by Landlord from time to time, which rates are
currently estimated to be $8.50 per hour per Zone (as hereinafter defined). A
zone covers approximately 1200 square feet (a “Zone”) - and each floor contains
13 Zones. Tenant shall be entitled to a credit equal to twenty (20) hours
excess HVAC usage each month for the Additional Premises during the Additional
Premises Term. Any unused credits for any Zone in any month may not be carried
forward or applied to any other Zone or any other month.

 

12.                                 Moving
Expenses. The following is added as a new Article 36:

 

ARTICLE 36. MOVING EXPENSES

 

In connection with Tenant’s relocation of the Tenant’s
personal property to the Additional Premises, Landlord will pay to Tenant an
amount equal to $1.50 per rentable square foot of the Additional Premises. Such
moving allowance will be paid by Landlord to Tenant in cash within 30 days of
the Additional Premises Commencement Date.

 

13.                                 Storage.
If requested by Tenant and to the extent available, Landlord to provide storage
space in the parking facilities portion of the Building, for Tenant’s exclusive
use as storage for personal property used in connection with Tenant’s occupancy
of the Premises. The location of the ‘ storage space will be determined by
Landlord in its sole discretion. Tenant will pay Landlord annually $12.00 per
square foot of storage space for the storage space, payable monthly in advance,
in equal installments at the same time and manner as Existing Premises Base
Rent or Additional Premises Base Rent, as applicable.

 

14.                                 Brokerage.
Article 24 of the Lease is hereby amended with the addition of the
following:

 

“Landlord will pay any brokers named in
Section 1.16 in accordance with the applicable listing agreement for the
Building.”

 

15.                                 Operating
Costs. With respect to the Additional Premises, for each calendar year,
Tenant’s obligation to pay Operating Costs shall not increase, on an annual and
cumulative basis, by an amount greater than five percent (5.0%) per year
following the initial lease year.

 

16.                                 Existing
Premises Rentable Square Footage. The rentable square footage of the
Existing Premises is hereby reduced from 6,028 to 5,545.

 

 

IN WITNESS WHEREOF, Landlord and Tenant have executed
this First Amendment to the Lease on the date first written above.

 

	
   

  	
  Landlord:

  
	
   

  	
   

  
	
   

  	
  SOFI IV-SPM PORTFOLIO XI, L.L.C., a Delaware limited
  liability company

  
	
   

  	
   

  
	
   

  	
  BY: SOFI IV-SPM Maricopa, L.P., General Manager

  
	
   

  	
   

  
	
   

  	
   

  	
  BY: SOFI IV ARIZONA
  TRUST, General

  Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/Mark M. Gromley

  
	
   

  	
   

  	
  Name: Mark M. Gromley
  Title:

  
	
   

  	
   

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Tenant:

  
	
   

  	
   

  
	
   

  	
  ESCHELON TELECOMMUNICATIONS, INC., a

  Delaware corporation, formerly known as

  
	
   

  	
  Advanced Telecommunications, Inc.., a Delaware

  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Satish Tiwari

  	
   

  
	
   

  	
  Name:

  	
  Satish Tiwari

  	
   

  
	
   

  	
  Its:  VP
  Network Engineering

  
								

 

 

SCHEDULE 1

 

ARTICLE 1 SUMMARY OF BASIC TERMS

 

1.1 The Existing
Premises: Suite #500 in the building consisting of approximately 5,545 square
feet of rentable area as illustrated on the attached Exhibit A; The Additional
Premises: Suite #550 in the Building consisting of approximately 9,391 rentable
square feet of rentable area as illustrated on the attached Exhibit A. A floor
plan for the floor(s) on which the Premises is located is attached as Exhibit
A-1.

 

1.2 The Building:
The building is located at 2600 North Central Avenue, Phoenix, Arizona.

 

1.3 “Project”
means the Building identified in Section 1.2, and all lands and facilities
used in connection with the Building as reasonably determined from time to time
by Landlord. The Project consists of approximately 322,000 square feet of
rentable area.

 

1.4 Names of
Guarantors: None.

 

1.5 Existing
Premises Security Deposit: $12,000.00; Additional Premises Security Deposit: $0
(see provisions of Article 4)

 

1.6 The Existing
Premises Term: Ten (10) years and four (4) months, beginning on the
Commencement Date and ending on the Expiration Date; The Additional Premises
Term: Five (5) years and eight (8) months, beginning on the Additional Premises
Commencement Date and ending on the Additional Premises Expiration Date.

 

1.7 Existing
Premises Commencement and Expiration Dates: January 15, 2000, and May 15,
2010, respectively, subject to the provisions of Exhibit A; Additional Premises
Commencement and Expiration Dates: June 1, 2003 and February 1, 2009.

 

1.8 Existing
Premises Base Rent:

 

	
  Lease Year

  	
   

  	
  Annual Base Rent

  	
   

  	
  Base Rent Per Square Foot

  	
   

  	
  Monthly Base Rent

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  $

  	
  120,560.00

  	
   

  	
  $20.00/sq. ft.

  	
   

  	
  $

  	
  10,046.67

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  $

  	
  124,176.80

  	
   

  	
  $20.60/sq. ft.

  	
   

  	
  $

  	
  10,348.07

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  $

  	
  127,914.16

  	
   

  	
  $21.22/sq. ft.

  	
   

  	
  $

  	
  10,659.51

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Month 36 -

  	
   

  	
  $

  	
  131,772.08

  	
   

  	
  $21.86/sq. ft.

  	
   

  	
  $

  	
  10,981.01 

  	
   

  
	
  Additional
  Premises

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Commencement
  Date

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Premises
  Additional

  	
   

  	
  $

  	
  121,213.70

  	
   

  	
  $21.86/sq. ft.

  	
   

  	
  $

  	
  10,101.14 

  	
   

  

 

 

	
  Lease
  Year

  	
   

  	
  Annual
  Base Rent

  	
   

  	
  Base
  Rent Per Square Foot

  	
   

  	
  Monthly
  Base Rent

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Commencement

  Date - Month 42

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  $

  	
  124,873.40

  	
   

  	
  $22.52/sq. ft.

  	
   

  	
  10,406.12

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
  $

  	
  128,644.00

  	
   

  	
  $23.20/sq. ft.

  	
   

  	
  $

  	
  10,720.33

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7

  	
   

  	
  $

  	
  132,525.50

  	
   

  	
  $23.90/sq. ft.

  	
   

  	
  $

  	
  11,043.79

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8

  	
   

  	
  $

  	
  136,517.90

  	
   

  	
  $24.62/sq. ft.

  	
   

  	
  $

  	
  11,376.49

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9

  	
   

  	
  $

  	
  140,621.20

  	
   

  	
  $25.36/sq. ft.

  	
   

  	
  11,718.43

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10

  	
   

  	
  $

  	
  144,835.40

  	
   

  	
  $26.12/sq. ft.

  	
   

  	
  $

  	
  12,069.62

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Additional
  Premises Base Rent:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  Lease
  Year

  	
   

  	
  Annual
  Base Rent

  	
   

  	
  Base
  Rent Per Square Foot

  	
   

  	
  Monthly
  Base Rent

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  01-08

  	
   

  	
  $

  	
  0

  	
   

  	
  $0

  	
   

  	
  $

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  09-20

  	
   

  	
  $

  	
  154,951.50

  	
   

  	
  $16.50/sq. ft.

  	
   

  	
  $

  	
  12,912.63

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  21-32

  	
   

  	
  $

  	
  159,647.00

  	
   

  	
  $17.00/sq. ft.

  	
   

  	
  $

  	
  13,303.92

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  33-44

  	
   

  	
  $

  	
  164,342.50

  	
   

  	
  $17.50/sq. ft.

  	
   

  	
  $

  	
  13,695.21

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  45-56

  	
   

  	
  $

  	
  169,038.00

  	
   

  	
  $18.00/sq. ft.

  	
   

  	
  $

  	
  14,086.50

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  57-68

  	
   

  	
  $

  	
  173,733.50

  	
   

  	
  $18.50/sq.. ft.

  	
   

  	
  $

  	
  14,477.79

  	
   

  

 

1.9 Tenant’s
Proportionate Share: 1.72% for the Existing Premises and 2.92% for the
Additional Premises, consisting of the proportion that the rentable area of the
Existing Premises or the Additional Premises, as applicable, bears to the
rentable area of the Project.

 

1.10 Existing Premises
Base Year: 2000; Additional Premises Base Year: 2003

 

1.11 Description of
Tenant’s Business: Executive and general office use, the installation,
operation and maintenance of equipment and facilities in connection with
Tenant’s telecommunication business, including but not limited to telecommunications
switch.

 

1.12 Normal Business
Hours: 7:00 a.m. to 6:00 p.m., Monday through Friday, 8:00 a.m. to 1:00 p.m. on
Saturday.

 

 

1.13 Additional Premises
Tenant Improvement Allowance: Landlord to deliver the Additional Premises to
Tenant “turnkey” per space plan prepared by Mittelstaedt Cooper &
Associates dated January 8, 2003, using building standard materials
(“Original Plan”). Notwithstanding anything to the contrary contained herein,
Landlord’s obligation relating to the Additional Premises Tenant Improvements
shall be limited to costs per Original Plan.

 

1.14 Landlord shall
commence construction of the fifth floor common area remodel (“Common Area
Improvements”) within thirty (30) days after completion of the Additional
Premises Tenant Improvements and shall, at Landlord’s sole expense, complete
the Common Area Improvements in a timely manner, subject to Force Majeure and
Tenant Delay.

 

1.15 Additional Premises
Load Factor: 6%.

 

1.16 Tenant’s Address for
Pre-occupancy Notices:

 

730 2”d Avenue South, #1200

Minneapolis, MN 55402

 

1.17 Landlord’s Notice
Address:

 

Starwood Asset Management

2525 East Camelback Road

Suite 740

Phoenix, AZ 85016

Attn.: Mark M. Grumley

Phone: (602) 468-0112

Facsimile: (602) 468-1567

 

Copy to:

 

Rinaldi, Finkelstein & Franklin, LLC 591 West
Putnam Avenue

Greenwich, CT 06830

Attn.: Eric W. Franklin, Esq.

Phone: (203) 422-7768

Facsimile: (203) 422-7868

 

Copy to:

 

CB Richard Ellis

2415 East Camelback Road

Ground Floor

Phoenix, AZ 85016

Attn.: Asset Service

Phone: (602) 735-5445

 

 

Facsimile: (602) 735-5113

 

1.18 Existing Premises
Landlord’s designated broker: Scottsdale Property Manager 97, L.L.C; Additional
Premises Landlord’s designated broker: CB Richard Ellis, Inc.

 

1.19 Existing Premises
Tenant’s designated broker: Eric Hamm, TELECOM Real Estate Services; Additional
Premises Tenant’s designated broker: CRESA Partners

 

 

SCHEDULE ”2”

 

Floor Plan

 

 

EXHIBIT “A”

 

CONSTRUCTION OF
ADDITIONAL PREMISES TENANT IMPROVEMENTS

 

1.                                       Additional
Premises Tenant Improvements. Landlord will cause to be constructed all
Additional Premises Tenant Improvements. The Additional Premises Tenant
Improvements will be designed as described in this Exhibit A. The cost of
constructing the Additional Premises Tenant Improvements will include all of
Landlord’s direct and indirect costs in connection with the design and
construction of the Additional Premises. Tenant Improvements
initially to be constructed in the Additional Premises, plus a percentage (not
to exceed five percent [5%]) of the sum of all such direct and indirect costs
for Landlord’s overhead and profit. “ Such costs of Landlord may include,
without limitation, space planning costs, construction document preparation
costs, design costs, construction drawing costs, general conditions, construction
costs and all costs Landlord incurs in connection with obtaining permits for
the Additional Premises Tenant Improvements. The Additional Premises Tenant
Improvements become the property of Landlord and a part of the Property
immediately upon installation. Landlord agrees to use reasonable efforts to
competitively bid the work for the construction of the Additional Premises
Tenant Improvements.

 

2.                                       Additional
Premises Tenant Improvement Allowance. Landlord will pay an amount equal to
the cost to deliver the Additional Premises to Tenant “turnkey” per space plan
prepared by Mittelstaedt Cooper & Associates dated January 8, 2003,
using building standard materials (“Original Plan”) (the “Additional Premises
Improvement Allowance”), for the design and installation of the Additional
Premises Tenant Improvements. Landlord is not obligated to pay or incur any
amounts that exceed the Additional Premises Improvement Allowance. If the cost
of the Additional Premises Tenant Improvements exceeds the Additional Premises
Improvement Allowance, then Tenant will pay the excess to Landlord in cash
within ten (10) days after demand. Tenant will also pay all of Landlord’s costs
(including lost rent) resulting from any Tenant Delay. If Landlord at any time
reasonably estimates that the cost of the Additional Premises Tenant
Improvements will exceed the Additional Premises Improvement Allowance, Tenant
shall immediately deposit with Landlord the amount by which the cost of the
Additional Premises Tenant Improvements exceeds the Additional Premises
Improvement Allowance.

 

3.                                       Space
Plan. [Intentionally Deleted].

 

4.                                       •
Additional Premises Construction Drawings. Landlord will provide Tenant
with the Additional Premises Construction Drawings and Specifications. Tenant
will approve or disapprove (specifically describing any reasons for
disapproval) the Additional Premises Construction Drawings and Specifications
in writing within three (3) business days after receiving them. Any failure by
Tenant to timely deliver such approval or disapproval is a Tenant Delay until
received. If Tenant disapproves the Additional Premises Construction Drawings
and Specifications, Landlord will provide appropriately revised Additional
Premises Construction Drawings and Specifications to Tenant for approval (or
disapproval) on the same basis as set forth above. If the review and approval
process is not concluded (with Tenant having approved

 

 

the Additional Premises Construction Drawings and
Specifications) on or
before              
, 2003, then such delay is a Tenant Delay until Tenant’s approval is received.
After Tenant’s approval, Landlord will submit the Additional Premises
Construction Drawings and Specifications for permits and construction bids.
Tenant will not withhold any approval except for reasonable cause and will not
act in an arbitrary or capricious manner in connection with-the review,
revision, approval or disapproval of the Additional Premises Construction
Drawings and Specifications. Tenant will not specify long lead time items that
would delay Substantial Completion of the Additional Premises Tenant
Improvements.

 

5.                                       Change
Orders. Tenant will immediately notify. Landlord if Tenant desires to make
any changes to the Additional Premises Tenant Improvements after Tenant has
approved the Additional Premises Construction Drawings and Specifications. If
Landlord approves the revisions, Landlord will notify Tenant of the anticipated
additional cost and delay in completing the Additional Premises Tenant
Improvements that would be caused by such revisions. Tenant will approve or
disapprove the increased cost and delay within five (5) business days after
such notice. If Tenant approves, Landlord will prepare, and Landlord and Tenant
will execute, a . Change Order describing the revisions and the anticipated
additional cost and delay. Any delay relating to a request for revisions or a
Change Order is a Tenant Delay. If the Change Order causes the cost of the
Additional Premises Tenant Improvements to exceed the Additional Premises
Improvement Allowance (or if the cost of the Additional Premises Tenant
Improvements already exceeds the Additional Premises Improvement Allowance),
Tenant shall prepay the added costs of the Change Order.

 

6.                                       Substantial
Completion; Punch List. As used in this Lease, “Substantial Completion”
means the earlier to occur of the following: (a) the issuance of all final
unconditional approvals and green tags by the governmental authority exercising
jurisdiction over the Additional Premises Tenant Improvements signifying the
final and unconditional acceptance and approval of the Additional Premises
Tenant Improvements, (b) the date a Certificate of Occupancy is issued for the
Additional Premises, and (c) if a Certificate of Occupancy is not required, the
date Tenant is reasonably able to take occupancy of the Additional Premises;
provided that if either (a), (b) or (c) is delayed or prevented because of work
Tenant is responsible for performing in the Additional Premises, “Substantial
Completion” means the date that all of Landlord’s work which is necessary for
either (a), (b) or (c) to occur has been performed and Landlord has made the
Additional Premises available to Tenant for the performance of Tenant’s work.
Within thirty (30) days after Substantial Completion, Landlord and Tenant will
inspect the Additional Premises and develop a Punch List. Landlord will cause
the items listed on the Punch List to be completed with commercially reasonable
diligence and speed, subject to Tenant Delay and Force Majeure. If Tenant refuses
to inspect the Additional Premises with Landlord within the 30-day period,
Tenant is deemed to have accepted the Additional Premises as delivered. Tenant
will not occupy the Additional Premises before Substantial Completion without
Landlord’s prior written consent, which consent Landlord may grant, withhold or
condition in its sole and absolute discretion. If Landlord consents, during the
early occupancy period Tenant may only install Tenant’s furniture, fixtures and
equipment in the Additional Premises and must comply with and observe all terms
and conditions of this Lease (other than Tenant’s obligation to pay Additional
Premises’Base Rent).

 

 

7.                                       Force
Majeure. As used in this Lease, “Force Majeure” means acts of God; strikes;
lockouts; labor troubles; inability to procure materials; inclement weather;
governmental laws or regulations; casualty; orders or directives of any
legislative, administrative, or judicial body or any governmental department;
inability to obtain any governmental licenses, permissions or authorities
(despite commercially reasonable pursuit of such licenses, permissions or
authorities); and other similar or dissimilar causes beyond Landlord’s
reasonable control.

 

8.                                       Tenant
Delay. “Tenant Delay” means any delay caused or contributed to by Tenant,
including, without limitation, with respect to the Additional Premises Tenant
Improvements, Tenant’s failure to timely prepare or approve the Additional
Premises Construction Drawings and Specifications, and any delay from any
revisions Tenant proposes to approved Additional Premises Construction Drawings
and Specifications. A Tenant Delay excuses Landlord’s performance of any
obligation related thereto for a period equal to (a) the duration of the act,
occurrence or omission that constitutes the Tenant Delay, or (b) if longer, the
period of delay actually caused by such Tenant Delay.Exhibit
10.19

 

 

LEASE

 

Between
ALCO INVESTMENT COMPANY,

a
Washington corporation

(“Landlord”)

 

and

 

ADVANCED
TELECOMMUNICATIONS, INC.,

a Delaware
corporation

(“Tenant”)

 

 

LEASE

 

THIS LEASE is made and entered into this 19th day of November, 1999,
between ALCO INVESTMENT COMPANY, a Washington corporation (“Landlord”), and
ADVANCED TELECOMMUNICATIONS, INC., a Delaware corporation(“Tenant”).

 

	
  1.             BASIC
  LEASE PROVISIONS

  AND IDENTIFICATION

  OF ADDENDA AND EXHIBITS.

  
	
   

  	
   

  	
   

  
	
  1.1           Basic
  Lease

  	
   

  	
  LEASED
  PREMISES:

  	
   

  	
  See Exhibit B,
  containing approximately 4,878 square feet. of rentable floor area

  
	
   

  	
  Provisions.

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  ADDRESS:

  	
   

  	
  921 SW Washington Street,
  Suite 410

  Portland Oregon 97205

  
	
   

  	
   

  	
   

  	
   

  	
  LEASE TERM:

  	
   

  	
  Ten (10) years

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  COMMENCEMENT
  DATE:

  	
   

  	
  January 1,
  2000

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  EXPIRATION
  DATE:

  	
   

  	
  December 31,
  2009

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  MONTHLY BASE
  RENT:

  	
   

  	
  Years 1-5:   $7,723.00 per
  month (see Base Rent Escalation Addendum and Emergency Generator Connection
  Fee Addendum for additional Monthly Base Rent payments)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Years 6-10:  adjusted to
  market rental rate of the Building pursuant to Market Rental Adjustment
  Addendum attached hereto

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  APPLICABLE
  PERCENTAGE:

  	
   

  	
  One and nine tenths of one
  percent (1.9%) (see Subsection 4.2(a))

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  PERMITTED
  USES:

  	
   

  	
  Location and
  operation of telecommunications equipment and general offices

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  TENANTS
  REPRESENTATIVE:

  	
   

  	
  Satish Tiwari

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  BROKER:

  	
   

  	
  Alco Properties

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  ADDENDA:

  	
   

  	
  BASE RENT
  ESCALATION, MARKET RENTAL ADJUSTMENT, COOLING TOWER CONNECTION FEE,
  ELECTRICAL CONNECTION FEE, EMERGENCY GENERATOR CONNECTION FEE, CONNECTIVITY
  RIGHT, RULES AND REGULATIONS

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.2           Identification
  of Exhibits and Addenda.

  	
   

  	
  The exhibits and addenda,
  if any, identified in and attached to this Lease are incorporated in this
  Lease by reference.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.             LEASED
  PREMISES.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.1           Leased
  Premises.

  	
   

  	
  Landlord hereby leases to
  Tenant, and Tenant hereby accepts from Landlord, subject to and with the
  benefit of the terms and provisions of this Lease, the Leased Premises
  located in the improvements which are located on the real property described
  in Exhibit A and depicted in Exhibit B. The real property and
  improvements are hereinafter referred to as the “Building”.

  
										

 

1

 

	
  2.2           Tenant
  Improvements

  	
   

  	
  Tenant accepts the Leased
  Premises in “as is” condition.

  
	
  Provisions.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.             TERM.

  	
   

  	
  This Lease shall be for a
  term (“Term”) which commences on the Commencement Date and expires on the
  Expiration Date. The “Commencement Date” shall be the date listed in Section
  1.1.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	 
	
  4.             RENT
  AND OTHER CHARGES.

  	
   

  	
   

  
	 
	
   

  	
   

  	
   

  	
   

  	
   

  
	 
	
  4.1           Monthly
  Base Rent.

  	
   

  	
  Commencing on the
  Commencement Date, Tenant shall pay to Landlord, without notice or demand and
  without any set-off or deduction whatsoever, the monthly sums set forth in
  Subsection 1.1 above (the “Monthly Base Rent”) which tenant shall pay in
  advance on or before the first day of each calendar month of the Term. If the
  Term commences on a day other than the first day of a calendar month, the Monthly
  Base Rent for such month shall be a prorated portion of the Monthly Base
  Rent, based upon a thirty (30) day month.

  
	 
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	 
	
  4.2           Other
  Charges.

  	
   

  	
  In addition to the Monthly
  Base Rent, Tenant shall pay to Landlord in the manner provided in Subsection
  4.2(b), Tenant's share of the Insurance and Taxes described in Subsection
  4.2(a)     (hereinafter together called
  “Other Charges”).

  
	 
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	 
	
   

  	
   

  	
  (a)  Other Charges.

  	
   

  	
  (i)
  Tenant shall pay to Landlord Tenant's share of the Insurance and Taxes of the
  Building for each Lease Year, or portion thereof, during the Term. Tenant's
  share shall be equal to the Applicable Percentage, multiplied by the amount
  of the total Insurance and Taxes during each Lease Year. The term “Insurance”
  means the total cost and expense for Insurance of the Building, including but
  not limited to, the fire and extended coverage insurance (with an earthquake
  endorsement); public liability and property damage insurance; and rent
  insurance.

  
	 
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	 
	
   

  	
   

  	
   

  	
   

  	
  (ii)
  The term “Taxes” means taxes on real property and personal property,
  including all tenant improvements which are paid for by Landlord and not
  reimbursed by tenants, and taxes on property of tenants of the Building which
  have not been paid by such tenants directly to the taxing authority; charges and
  assessments levied with respect to the Building, any improvements, fixtures
  and equipment, and all other property of Landlord, real or personal, used
  directly in the operation of the Building, and located in or on the Building;
  and any taxes levied or assessed in addition to or in lieu of, in whole or in
  part, such real property or personal property taxes, or any other tax upon
  leasing of the Building or rents collected, but excluding any federal or
  state income tax or franchise tax.

  
	 
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	 
	
   

  	
   

  	
  (b)  Payment of Other Charges.

  	
   

  	
  Prior to the first day of
  each Lease Year of the Term (or as soon thereafter as such information
  becomes available) Landlord will notify Tenant in writing of Landlord's
  estimate of Tenant's share of the Other Charges due for the next Lease Year.
  Landlord's estimate shall be based upon the actual amount of the Other
  Charges for the immediately preceding Lease Year and Landlord's estimate of
  Other Charges for the next Lease Year. Tenant shall pay the estimated
  Tenant's share in advance in twelve (12) equal monthly installments on the
  first day of each month of such year. Within thirty (30) days after the end
  of each Lease Year, Landlord will compute Tenant's share for such Lease

  
											

 

2

 

 

	
   

  	
   

  	
   

  	
   

  	
  Year based upon the actual
  amount of the Other Charges for that Lease Year, and if the total amount paid
  by Tenant for such Lease Year is less than the actual amount of Tenant's
  share for such Lease Years, Tenant shall pay Landlord any deficiency. If the total
  amount paid by Tenant for such Lease Year exceeds the actual amount of
  Tenant's share, Landlord shall credit such excess to the next monthly
  payments of Other Charges which thereafter come due. If the Term commences at
  a time other than the beginning Of a Lease Year, Tenant shall pay the
  estimate of Tenant's share for the portion remaining of the Lease Year based
  upon the number of days of the Term in such Lease Year. If this Lease expires
  at a time other than the expiration date of a Lease Year, Tenant shall be
  obligated to pay immediately any deficiencies which shall be computed at the
  expiration of that Lease Year. If the estimated amount Tenant has paid for
  that Lease Year exceeds the actual amount of Tenant's share, Landlord shall
  refund such excess to Tenant. If at any time during a Lease Year the amount
  of the Other Charges increases over the estimated amount, Landlord may, at
  its election, adjust the amount of monthly estimated installments due during
  the balance of that Lease Year to reflect such increase. Any increased
  payments required to be made pursuant to this Subsection shall be made within
  thirty (30) days after Landlord has notified Tenant thereof. Tenant's
  obligations under this Subsection shall survive the expiration or termination
  of this Lease.

  
	
  4.3           Late
  Charges.

  	
   

  	
  If Tenant fails to pay
  when the same is due and payable, any Monthly Base Rent or any additional
  rent, such unpaid amounts shall bear interest at the rate of eighteen percent
  (18%) per annum from the date due to the date of payment, but in no event in
  excess of the maximum rate, if any, permitted by applicable law. In addition
  to such interest, if any Monthly Base Rent installment is not received by
  Landlord from Tenant by the tenth (10th) day of the month for which such installment
  is due, Tenant shall immediately pay to Landlord. a late charge equal to five
  percent (5%) of each installment.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.             PERSONAL
  PROPERTY TAXES.

  	
   

  	
  Tenant shall pay, or cause
  to be paid, before delinquency, any and all taxes levied or assessed during
  the Term upon all Tenant's leasehold improvements, equipment, furniture,
  fixtures, and any other personal property located in the Leased Premises.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.             LICENSES
  AND TAXES.

  	
   

  	
  Tenant shall be liable
  for, and shall pay throughout the Term, all license and excise fees and
  business and occupation taxes covering the business conducted on the Leased
  Premises. If any governmental authority or unit under any present or future
  law effective at any time during the Term hereof shall in any manner levy a
  tax on rents payable under this Lease or rents accruing from use of the
  Leased Premises or a tax in any form against Landlord because of or measured
  by income derived from the leasing or rental of such property, such tax shall
  be paid by Tenant, either directly or through Landlord. Upon Tenant's failure
  to pay such amounts, Landlord shall have the same remedies as for failure to
  pay rent. Tenant shall not be liable to pay any net income tax imposed on
  Landlord.

  

 

3

 

	
  7.             USE.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  7.2           Permitted
  Uses.

  	
   

  	
  Tenant shall not use or
  permit or suffer the use of the Leased Premises for any business or purpose
  other than set forth in Subsection 1.1 above. Tenant shall not do or permit
  anything to be done in or about the Leased Premises or bring or keep anything
  therein which will in any way increase the existing rate or premiums of, or
  affect any, fire or other insurance upon the Leased Premises or the Building,
  or cause a cancellation of any insurance policy covering the Leased Premises
  or the Building or any part thereof or any of its contents. Tenant shall not
  do or permit or suffer anything to be done in or about the Leased Premises
  which will in any way obstruct or interfere with the rights of other tenants
  or occupants in the Building. Tenant shall, at its sole cost and expense,
  promptly comply with all local, state or federal laws.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.2           Hazardous
  Waste and Materials.

  	
   

  	
  Tenant shall not dispose
  of or otherwise allow the release of any hazardous waste or materials in, on
  or under the Leased Premises, or any adjacent property, or in any
  improvements placed on the Leased Premises. Tenant represents and warrants to
  Landlord that Tenant's intended use of the Premises does not involve the use,
  production, disposal or bringing on to the Leased Premises of any hazardous
  waste or materials. As used herein, the term “hazardous waste or materials”
  includes any substance, waste or material defined or designated as hazardous,
  toxic or dangerous (or any similar term) by any federal, state or local
  statute, regulation, rule or ordinance now or hereafter in effect. Tenant
  shall promptly comply with all statutes, regulations and ordinances, and with
  all orders, decrees or judgments of governmental authorities or courts having
  jurisdiction, relating to the use, collection, treatment, disposal, storage,
  control, removal or cleanup of hazardous waste or materials in, on or under
  the Leased Premises or any adjacent property, or incorporated in any
  improvements, at Tenant's expense.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Tenant shall not allow
  smoke of any kind in the Leased Premises, including but not limited to, smoke
  from cigarettes, pipes and cigars unless Tenant provides, at Tenant's sole
  expense, an air supply and exhaust system which is one hundred percent
  separated from the Building air system shared with other tenants.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  After notice to Tenant and
  a reasonable opportunity for Tenant to effect such compliance, Landlord may,
  but is not obligated to, enter upon the Leased Premises and take such actions
  and incur such costs and expenses to effect such compliance as it deems
  advisable to protect its interest in the Leased Premises; provided, however,
  that Landlord shall not be obligated to give Tenant notice and an opportunity
  to effect such compliance if (1) such delay might result in material adverse
  harm to Landlord or the Leased Premises, (2) Tenant has already had actual
  knowledge of the situation and a reasonable opportunity to effect such
  compliance, or (3) an emergency exists. Whether or not Tenant has actual
  knowledge of the release of hazardous waste or materials on the Premises or
  any adjacent property as the result of Tenant's use of the Leased Premises,
  Tenant shall reimburse Landlord for the full amount of all costs and expenses
  incurred by Landlord in connection with such compliance activities, and such
  obligation shall continue even after the termination of this Lease. Tenant

  

 

4

 

	
   

  	
   

  	
   

  	
   

  	
  shall notify Landlord
  immediately of any release of any hazardous waste or materials on the Leased
  Premises.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Tenant agrees to indemnify
  and hold Landlord harmless against any and all losses, liabilities, suits,
  obligations, fines, damages, judgments, penalties, claims, charges, cleanup
  costs, remedial actions, costs and expenses (including, without limitations,
  attorneys' fees and disbursements) which may be imposed on, incurred or paid
  by, or asserted against Landlord or the Premises by reason of, or in
  connection with (1) any misrepresentation, breach of warranty or other
  default by Tenant under this Lease, or (2) the acts or omissions of Tenant,
  or any subtenant or other person for whom Tenant would otherwise be liable,
  resulting in the release of any hazardous waste or materials.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Tenant acknowledges that
  the Premises may contain asbestos materials, and Tenant accepts the Premises
  and the Building notwithstanding such materials. If Landlord is required by
  any statute, regulation, order, decree, judgment, or other law to take any
  action to remove or abate the asbestos materials, or if Landlord deems it
  necessary to conduct special maintenance or testing procedures with regard to
  the asbestos materials, or to remove or abate such asbestos material,
  Landlord may take such action or conduct such procedures at times and in a
  manner that Landlord deems appropriate under the circumstances, and Tenant
  shall permit the same.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.             ALTERATIONS.

  	
   

  	
  Tenant shall not make any
  alterations, additions, or improvements in or to the Leased Premises without
  the prior written consent of Landlord, which consent may be subject to such
  conditions as Landlord may deem appropriate but which consent shall not be
  unreasonably withheld or delayed. Landlord shall use its best efforts to
  expedite review and approval of Tenant's alteration plans when Tenant's
  schedule requires expedited review. Except as otherwise expressly provided in
  the Tenant Improvements Provisions, any such alterations, additions or
  improvements consented to by Landlord shall be made at Tenant's sole cost and
  expense.  Tenant shall secure any and
  all governmental permits, approvals or authorizations required in connection
  with any such work, and shall hold Landlord harmless from any and all
  liability, costs, damages, expenses (including attorneys' fees) and any and
  all liens resulting therefrom. All alterations, additions and improvements
  (and expressly including all light fixtures and floor coverings), except
  trade fixtures and other equipment which do not become a part of the Leased
  Premises, shall immediately become the property of Landlord without any
  obligation to pay therefore. Upon the expiration or sooner termination of the
  Term, Tenant shall, upon written demand by Landlord, given at least thirty
  (30) days prior to the end of the Term, at Tenant's sole cost and expense
  forthwith remove any trade fixtures of Tenant designated by Landlord to be
  removed, but not alterations, additions or improvements made by Tenant, and
  Tenant shall forthwith at its sole cost and expense, repair any damage to the
  Leased Premises caused by such removal of trade fixtures.

  

 

5

 

	
  9.             MAINTENANCE,
  REPAIRS AND SERVICES.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.1           Maintenance
  and Repairs by Landlord.

  	
   

  	
  Landlord shall repair and
  maintain in good order and condition the public and common areas of the
  Building, including lobbies, stairs, elevators, corridors, restrooms,
  windows, mechanical, plumbing and electrical equipment and the structure
  itself. However, if such maintenance and repair becomes necessary in whole or
  in part due to the act, neglect, fault or omission of any duty by Tenant, its
  employees, agents, licensees, customers, guests or invitees, or due to damage
  caused by actual or attempted breaking and entering of the Leased Premises or
  other unauthorized entry of the Leased Premises, such maintenance and repair
  shall be undertaken by Landlord at Tenant's expense. There shall be no
  abatement of rent and no liability of Landlord by reason of any interference
  with Tenant's business arising from the making of any repairs, alterations or
  improvements to any portion of the Leased Premises, the Building, or to
  fixtures, appurtenances and equipment therein so long as Landlord is making
  reasonable good faith efforts to minimize such interference.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.2           Maintenance
  and Repairs by Tenant.

  	
   

  	
  Tenant by occupying the
  Leased Premises accepts same as being in good and tenantable condition in
  accordance with Landlord'sobligations. Tenant shall at Tenant's sole expense
  keep the Leased Premises and all interior partitions, door surfaces,
  fixtures, equipment and appurtenances (including lighting and plumbing
  fixtures) in good and sanitary condition and repair, ordinary wear and tear
  excepted; provided, however, with respect to such items that are shared with
  other tenants of the Building, Tenant shall pay its pro-rata share of such
  expenses. Tenant shall at the expiration or termination of the Term surrender
  to Landlord the Leased Premises and all alterations, additions and
  improvements in the same condition as when received, ordinary wear and tear
  excepted. Landlord has no obligation and has made no promise to alter,
  remodel, improve, or repair the Leased Premises or any part thereof, except
  as specifically set forth in this Lease. Tenant also acknowledges that
  Landlord has made no representations or warranties respecting the condition
  of the Leased Premises or the Building, except as specifically set forth in
  this Lease. If any standard or regulation is imposed on Landlord or Tenant by
  any federal, state or local governmental or quasi-governmental body charged
  with the establishment, regulation and enforcement of occupational, health or
  safety standards for employers, employees, landlords or tenants, then Tenant
  agrees, at its sole cost and expense, to comply promptly with such standards
  or regulations with respect to the Leased Premises.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.3           Failure
  to Maintain.

  	
   

  	
  If Tenant fails to keep
  and preserve the Leased Premises as set forth in Subsection 9.2 above,
  Landlord may, at its option, put or cause the same to be put in the condition
  and state of repair agreed upon, and in such case, upon receipt of written
  statements from Landlord, Tenant shall promptly pay the entire cost thereof.
  Landlord shall have the right, without liability, to enter the Leased
  Premises for the purpose of making such repairs upon the failure of Tenant to
  do so with fifteen (15) days' notice to Tenant, unless Landlord deems entry
  necessary without notice due to an emergency.

  

 

6

 

	
  9.4           Surrender
  of Leased Premises.

  	
   

  	
  At the expiration or
  sooner termination of this Lease, Tenant shall return the Leased Premises to
  Landlord in the same condition in which received (or, if altered by Landlord
  or by Tenant with the Landlord's consent, then the Leased Premises shall be
  returned in such altered condition), reasonable wear and tear excepted.
  Tenant shall remove all trade fixtures, appliances and equipment which do not
  become a part of the Leased Premises and shall restore the Leased Premises to
  the condition they were in prior to the installation of such items,
  reasonable wear and tear excepted.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.5           Services.

  	
   

  	
  Landlord shall furnish the
  Leased Premises with:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (a)           Cooling tower water pursuant to the
  attached Cooling Tower Connection Fee Addendum;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (b)           Electrical service pursuant to the
  attached Electrical Connection Fee Addendum; and

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (c)           Emergency generator service
  pursuant to the attached Emergency Generator Fee Addendum.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.6           Landlord’s
  Duties.

  	
   

  	
  Landlord shall not be in
  default under this Lease or liable for any damages resulting from or
  incidental to, nor shall it be an actual or constructive eviction of the
  Tenant, nor shall the rent be abated by reason of:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (a)           The interruption of use of any
  equipment in connection with the furnishing of any of the services described
  in this Section 9;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (b)
  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, including the making of necessary repairs or improvements to the
  Leased Premises or to the Building/systems;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (c)           Any limitation, curtailment,
  rationing or restrictions on the use of electricity, water, gas or any other
  form of energy serving the Leased Premises or the Building; or

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (d)           Failure to make any repair or to
  perform any maintenance, unless such failure shall persist for an
  unreasonable time after written notice of the need for such repair or
  maintenance is given to, Landlord by Tenant.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Landlord shall use its
  commercially best efforts to remedy any interruption in the furnishing of
  such services.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.7           Governmental
  Regulations.

  	
   

  	
  Any other provisions of
  this Section 9 notwithstanding, if any governmental agency or utility
  supplier imposes any regulations, controls, conditions, or other restrictions
  upon Landlord, Tenant, or the Building, which require or make desirable a
  change in the services provided by Landlord under this Lease or the lighting
  or equipment used by Tenant on the Leased Premises, Landlord may comply and
  may require Tenant to comply with such regulations, controls, conditions or
  restrictions without Landlord being in default under this Lease or liable for
  any damages to Tenant and without said actions constituting an actual or

  

 

7

 

	
   

  	
   

  	
   

  	
   

  	
  constructive eviction of
  Tenant or entitling Tenant to any abatement of rent, providing that Tenant is
  able to conduct its ordinary and customary business in the Leased Premises.
  Without limiting the generality of the foregoing, it shall specifically
  include curtailment, rationing, or restrictions on the use of electricity and
  other sources of power, and recommended or mandated changes in temperatures
  to be maintained in the Building or Leased Premises.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.8           Electricity
  Use.

  	
   

  	
  Tenant shall pay for the
  cost of furnishing the Leased Premises with metered electrical service from
  Landlord's Electrical Service Gear pursuant to the attached Electrical
  Connection Fee Addendum. Tenant shall reimburse Landlord for all electrical
  energy used in the Leased Premises. In no event shall the Tenant's use of
  electricity exceed the capacity of existing feeders to the Building or the
  risers or wiring installation, and the Landlord may prohibit the use of any
  electrical equipment which in the Landlord's opinion will overload such
  wiring or interfere with the use thereof by other tenants in the Building. If
  Landlord consents to the use of equipment requiring such changes, Tenant
  shall pay the cost of installing any additional risers, panels or other
  facilities that may be necessary to furnish energy to the Leased Premises.

  
	
   

  	
   

  	
   

  
	
  9.9           Conservation.

  	
   

  	
  Tenant shall use its best
  efforts to recycle its waste and to conserve heat, air conditioning, electricity
  and water usage on the Leased Premises.

  
	
   

  	
   

  	
   

  
	
  10.           LIENS
  AND ENCUMBRANCES.

  	
   

  	
  Tenant shall keep the
  Leased Premises and the Building, free from any liens or encumbrances arising
  out of any work performed, materials furnished or obligations incurred by Tenant,
  and shall indemnify and hold Landlord harmless from any and all costs,
  liability or expenses (including attorneys' fees) arising therefrom.

  
	
   

  	
   

  	
   

  
	
  11.           ASSIGNMENT
  AND SUBLETTING.

  	
   

  	
  Tenant shall not assign,
  transfer, mortgage, pledge, hypothecate or encumber this Lease or any
  interest therein, nor sublet the whole or any part of the Leased Premises,
  nor shall this Lease or any interest hereunder be assignable or transferable
  by operation of law or by any process or proceeding of any court, or
  otherwise without the consent of Landlord. Landlord reserves the right to
  refuse to give such consent if in Landlord's reasonable business judgment the
  quality of business experience or the financial worth of the proposed new
  tenant is less than that of Tenant. For the purposes hereof, if Tenant is a
  partnership, a transfer of a general partner's interests in a partnership
  shall be deemed an assignment. For the purposes hereof, a consolidation or
  merger of Tenant (or if Tenant is a partnership, one or more of whose partners
  is a corporation, then of such corporation(s), or a change in more than fifty
  percent (50%) of the issued and outstanding voting or non-voting stock of
  Tenant (or if Tenant is a partnership, one or more of whose partners is a
  corporation, then of such corporation(s) shall be deemed as assignment.
  Tenant agrees to reimburse Landlord for Landlord's reasonable attorneys' fees
  incurred in conjunction with the proceeding and documentation of any such
  requested transfer, assignment, subletting, licensing or concession
  agreement, change of fee ownership or hypothecation of this Lease or Tenant's
  interest in the Leased Premises.

  

 

8

 

 

	
  12.           INSURANCE
  AND INDEMNITY.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  12.1         Indemnification.

  	
   

  	
  Landlord shall not be
  liable for injury to any person, or for the loss of or damage to any property
  (including property of Tenant) occurring in or about the Leased Premises from
  any cause whatsoever, except for Landlord's negligent acts or willful
  misconduct. Tenant hereby indemnifies and holds Landlord harmless from and
  against and agrees to defend Landlord against any and all claims, charges,
  liabilities, obligations, penalties, damages, costs and expenses (including
  attorneys' fees) arising, claimed, charged or incurred against or by Landlord
  from any matter or thing arising from Tenant's use of the Leased Premises,
  the conduct of its business or from any activity, work or other things done,
  permitted or suffered by the Tenant in or about the Leased Premises, and
  Tenant shall further indemnify and hold Landlord harmless from and against
  any and all claims arising from any breach or default in the performance of
  any obligation on Tenant's part or to be performed under the terms of this
  Lease, or arising from any act or negligence of the Tenant, or any officer,
  agent, employee, guest, or invitee of Tenant, and from all costs, attorneys'
  fees, and liabilities incurred in or about the defense of any such claim or
  any action or proceeding brought thereon; and in case any action or
  proceeding be brought against Landlord by reason of such claim; Tenant, upon
  notice from Landlord, shall defend the same at Tenant's expense by counsel
  reasonably satisfactory to Landlord. The indemnification provided for in this
  paragraph with respect to any acts or omissions during the term of this Lease
  shall survive any termination or expiration of this Lease. Landlord shall not
  be liable for interference with light or air or view or for any latent defect
  in the Leased Premises. Tenant shall promptly notify Landlord of casualties
  or accidents occurring in or about the Leased Premises. In the event of
  concurrent negligence of Tenant, its agents, employees, sublessees, invitees,
  licensees or contractors on the one hand, and that of Landlord, its partners,
  directors, officers, agents, employees, or contractors on the other hand,
  which concurrent negligence results in the injury or damage to persons or
  property and relates to the construction, alteration, repair, addition to,
  subtraction from, improvement to or maintenance of the Leased Premises,
  common areas or buildings, Tenant's obligation to indemnify Landlord as set
  forth in this Section shall be limited to the extent of Tenant's negligence,
  and that of its agents, employees, sublessees, invitees, licensees or
  contractors, including Tenant's proportional share of costs, including
  attorneys' fees and expenses incurred in connection with any claim, action or
  proceeding brought with respect to such injury or damage. Tenant and Landlord
  further agree that this indemnification provision has been specifically
  negotiated and agreed to the parties hereto. Any indemnification of Landlord
  provided for in this Lease shall include Landlord and its property manager
  and their officers, employees and agents.

  
	
   

  	
   

  	
   

  
	
  12.2         Insurance.

  	
   

  	
  During the entire Term of
  this lease Tenant shall, at its expense, maintain adequate liability
  insurance with a reputable insurance company or companies with a combined
  single limit of $1,000,000 for personal injuries or property damage, to indemnify
  both Landlord and Tenant against any such claims, demands, losses, damages,

  

 

9

 

	
   

  	
   

  	
  liabilities and expenses.
  Landlord shall be named as one of the insureds and shall be furnished with a
  certificate of such insurance, which shall bear an endorsement that the same
  shall not be canceled except upon not less than twenty (20) days' prior
  written notice to Landlord. Tenant shall also at its own expense maintain,
  during the Term, all-risk insurance covering its furniture, fixtures,
  equipment and inventory in an amount equal to the replacement cost thereof,
  and insurance covering all plate glass and other glass on the Leased
  Premises. Tenant shall provide Landlord with copies of the policies of
  insurance or certificates thereof.

  
	
   

  	
   

  	
   

  
	
  12.3         Increase
  in Insurance Premium.

  	
   

  	
  Tenant shall not keep,
  use, sell or offer for sale in or upon the Leased Premises any article which
  may be prohibited by the standard form of fire insurance policies.  Tenant shall pay any increase in premium
  for casualty and fire (including extended coverage) insurance that may be
  charged during the Term on the amount of such insurance which may be carried
  by Landlord on the Leased Premises or the Building, resulting from Tenant's
  occupancy or from the type of property which Tenant stores on the Leased
  Premises, whether or not Landlord has consented thereto. In such event,
  Tenant shall also pay any additional premium on the insurance policy that
  Landlord may carry for its protection against rent loss through fire or
  casualty.

  
	
   

  	
   

  	
   

  
	
  12.4         Waiver
  of Subrogation.

  	
   

  	
  Landlord and Tenant hereby
  mutually release each other from liability and waive all right of recovery
  against each other, their agents or employees, for any loss in or about the
  Leased Premises, from perils insured against under their respective fire and
  all-risk insurance contracts, including any extended coverage endorsements
  thereof, whether due to negligence or any other cause; provided that this
  Subsection shall be inapplicable if it would have the effect, but only to the
  extent it would have the effect, of invalidating any insurance coverage of
  Landlord or Tenant.

  
	
   

  	
   

  	
   

  
	
  13.           EMINENT
  DOMAIN.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  13.1         Taking.

  	
   

  	
  If all or part of the
  Leased Premises are taken by the power of eminent domain exercised by any
  governmental or quasi-governmental authority, this Lease shall terminate as
  of the date Tenant is required to vacate the Leased Premises and all Monthly
  Base Rent and other rentals and charges due hereunder shall be paid to that
  date. The term “eminent domain” shall include the taking or damaging of
  property by, through or under any governmental or quasi-governmental
  authority, and any purchase or acquisition in lieu thereof, whether or not
  the damaging or taking is by government or any other person. If part of the
  Building is taken or appropriated but no portion of the Leased Premises is
  taken or appropriated, this Lease may, at the option of the Landlord, be
  terminated by written notice given to the Tenant not more than thirty (30)
  days after Landlord receives notice of the taking or appropriation. If part
  of the Building is taken or appropriated but no portion of the Leased
  Premises is taken or appropriated and if such taking or appropriation has a
  material adverse affect on Tenant's business this Lease may, at the option of
  Tenant, be terminated, by written notice given to Landlord within sixty (60)
  days of receipt of notice by Tenant of such proposed taking. Such
  terminations shall be effective as of

  

 

10

 

	
   

  	
   

  	
  the date when the Landlord
  or its tenants are required to vacate the portion of the Building so taken.

  
	
   

  	
   

  	
   

  
	
  13.2         Damages.

  	
   

  	
  Landlord reserves all
  rights to the entire damage award or payment for any taking by eminent
  domain, and Tenant shall make no claim whatsoever against Landlord for
  damages. Tenant hereby grants and assigns to Landlord any right Tenant may
  now have or hereafter acquire to such damages to which Landlord is entitled
  under this Subsection 13.2 and agrees to execute and deliver such further
  instruments of assignment thereof as Landlord may from time to time request.
  Tenant shall, however, have the right to claim from the condemning authority
  all compensation that may be recoverable by Tenant for damages on account of
  any loss incurred by Tenant in removing Tenant's merchandise, furniture,
  trade fixtures and equipment or for damage to Tenant's business; provided,
  however, the Tenant may claim such damages only if they are awarded
  separately in the eminent domain proceeding and not as part of Landlord's
  damages.

  
	
   

  	
   

  	
   

  
	
  14.           TENANT’S
  DEFAULT.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  14.1         Default.

  	
   

  	
  After ten (10) days' prior
  written notice to Tenant, Landlord may at its option pay any amounts which
  Tenant is obligated to pay to third parties pursuant to this Lease, in which
  event Tenant shall pay Landlord upon demand. All amounts in addition to
  Monthly Base Rent which Tenant is required to pay under this Lease shall be
  considered “additional rent.” The occurrence of any one or more of the
  following events shall constitute a default and breach of this Lease by
  Tenant.

  
	
   

  	
   

  	
   

  
	
  (a)           Abandoning
  the Leased Premises.

  	
   

  	
  The abandonment of the
  Leased Premises by Tenant or the failure of Tenant to be open for business
  (except in the event of damage or destruction to the Leased Premises which
  prevents Tenant from conducting any business thereon or damage to the Leased
  Premises beyond Tenant's reasonable control) for more than five (5) business
  days.

  
	
   

  	
   

  	
   

  
	
  (b)           Failure
  to Pay Rent.

  	
   

  	
  The failure by Tenant to
  make any payment of Monthly Base Rent, additional rent, or any other payment
  required to be made by Tenant hereunder, as and when due, where such failure
  shall continue for a period of ten (10) days after written notice thereof by
  Landlord to Tenant.

  
	
   

  	
   

  	
   

  
	
  (c)           Failure
  to Perform.

  	
   

  	
  The failure by Tenant to
  observe or perform any of the covenants, conditions or provisions of this
  Lease to be observed or performed by the Tenant, other than described in
  Subsection 14.1 (b) above, where such failure shall continue for a period of
  fifteen (15) days after written notice thereof by Landlord to Tenant;
  provided, however, that if the nature of Tenant's default is such that more
  than fifteen (15) days are reasonably required for its cure, then Tenant
  shall not be deemed to be in default if Tenant commences such cure within
  said fifteen (15) day period and thereafter diligently prosecutes such cure
  to completion.

  
	
   

  	
   

  	
   

  
	
  (d)           Bankruptcy.

  	
   

  	
  The making by Tenant of
  any general assignment or general arrangement for the benefit of creditors;
  or the filing by or against Tenant of a petition to have Tenant adjudged a
  bankrupt, or a petition of reorganization or arrangement

  

 

11

 

	
   

  	
   

  	
  under any law relating to
  bankruptcy (unless, in the case of a petition filed against Tenant, the same
  is dismissed within sixty (60) days of filing); or the appointment of a
  trustee or a receiver to the possession of substantially all of Tenant's
  assets located at or operated from the Leased Premises or of Tenant's
  interest in this Lease, where such seizure is not discharged in thirty (30)
  days after appointment of such trustee or receiver, or the filing of the
  petition for the appointment of the same, whichever shall first occur.

  
	
   

  	
   

  	
   

  
	
  14.2         Remedies
  in Default.

  	
   

  	
  In the event of any such
  default or breach by Tenant, Landlord may at any time thereafter, with or
  without notice or demand and without limiting Landlord in the exercise of a
  right or remedy which Landlord may have by reason of such default or breach:

  
	
   

  	
   

  	
   

  
	
  (a)           Terminate
  Lease.

  	
   

  	
  Terminate Tenant's right
  to possession of the Leased Premises by any lawful means, in which case this
  Lease shall terminate and Tenant shall immediately surrender possession of
  the Leased Premises to Landlord. In such event Landlord shall be entitled to
  recover from the Tenant all past due rents to the date of award by the court
  having jurisdiction thereof; the expenses of reletting the Leased Premises,
  including necessary renovation and alteration of the Leased Premises and
  reasonable attorneys' fees; the worth at the time of award by the court
  having jurisdiction thereof of the amount by which the unpaid rent called for
  herein for the balance of the Term after the time of such award exceeds the
  amount of such loss for the same period that Tenant proves could be reasonably
  avoided; and that portion of any leasing commission paid by Landlord and
  applicable to the unexpired Term of this Lease. Unpaid installments of rent
  or other sums shall bear interest from the date due at the rate provided in
  Subsection 4.3; or

  
	
   

  	
   

  	
   

  
	
  (b)           Continue
  the Lease.

  	
   

  	
  Maintain Tenant's right to
  possession, in which case this Lease shall continue in effect whether or not
  Tenant shall have abandoned the Leased Premises. In such event Landlord shall
  be entitled to enforce all Landlord's rights and remedies under this Lease,
  including the right to recover the Monthly Base Rent and additional rent as
  may become due hereunder but Landlord shall also be required to mitigate its
  damages by seeking to re-let the Leased Premises; or

  
	
   

  	
   

  	
   

  
	
  (c)           Other
  Remedies.

  	
   

  	
  Pursue any other remedy
  now or hereafter available to Landlord under the laws or judicial decisions
  of the State of Oregon.

  
	
   

  	
   

  	
   

  
	
  14.3         Legal
  Expenses.

  	
   

  	
  If either party is
  required to bring or maintain any action (including assertion of any
  counterclaim or cross-claim, or claim in a proceeding in bankruptcy,
  receivership or any other proceeding instituted by a party hereto or by
  others), or otherwise refers this Lease to an attorney for the enforcement of
  any of the covenants, terms or conditions of this Lease, the prevailing party
  in such action shall, in addition to all other payments required herein,
  receive from the other all the costs incurred by the prevailing party
  including reasonable attorneys' fees which the prevailing party incurred at
  trial and/or on any appeal.

  

 

12

 

	
  14.4.        Remedies
  Cumulative - Waiver.

  	
   

  	
  Landlord's remedies
  hereunder are cumulative and the Landlord's exercise of any right or remedy
  due to a default or breach by Tenant shall not be deemed a waiver of, or to
  alter, affect or prejudice any right or remedy which Landlord may have under
  this Lease or by law. Neither the acceptance of rent nor any other acts or
  omission of Landlord at any time or times after the happening of any event authorizing
  the cancellation or forfeiture of this Lease, shall operate a waiver of any
  past or future violation, breach or failure to keep or perform any covenant,
  agreement, term or condition hereof or to deprive Landlord of its right to
  cancel or forfeit this Lease, upon the written notice provided for herein, at
  any time that cause for cancellation or forfeiture may exist, or be construed
  so as at any time to stop Landlord from promptly exercising any other option,
  right or remedy that it may have under any term or provision of this Lease,
  at law or in equity.

  
	
   

  	
   

  	
   

  
	
  15.           DEFAULT
  BY LANDLORD.

  	
   

  	
  Landlord shall not be in
  default unless Landlord fails to perform obligations required of Landlord
  within thirty (30) days after written notice by Tenant to Landlord and to the
  holder of any mortgage or deed of trust covering the Leased Premises which
  describes the default; provided, however, that if the nature of Landlord's
  obligation is such that more than thirty (30) days are required for
  performance, then Landlord shall not be in default if Landlord commences
  performance within such thirty (30) day period and thereafter diligently
  prosecutes the same to completion. Tenant shall provide the holder of the
  mortgage or deed of trust with notice and time to cure as provided in
  Subsection 17.3.

  
	
   

  	
   

  	
   

  
	
  16.           DAMAGE
  OR DESTRUCTION.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  16.1         Damage
  and Repair.

  	
   

  	
  In case of damage to the
  Leased Premises or the Building by fire or other casualty, Tenant shall give
  immediate notice to Landlord. If the Building is damaged by fire or any other
  cause to such extent that the cost of restoration, as reasonably estimated by
  Landlord, will equal or exceed thirty percent (30%) of the replacement value
  of the Building (exclusive of foundations) just prior to the occurrence of
  the damage, or if insurance proceeds sufficient for restoration are for any
  reason unavailable, then Landlord may no later than the sixtieth (60th) day
  following the damage, give tenant a notice of election to terminate this
  Lease. In the event of such an election this Lease shall be deemed to
  terminate on the third (3rd) day after the giving of said notice, and Tenant
  shall surrender possession of the Leased Premises within a reasonable time
  thereafter, and the Monthly Base Rent shall be apportioned as of the date of said
  surrender and any rent paid for any period beyond said date shall be repaid
  to Tenant. If the cost of restoration as estimated by Landlord shall amount
  to less than thirty percent (30%) of such replacement value of the Building
  and insurance proceeds sufficient for restoration are available, or if
  despite the cost Landlord does not elect to terminate this Lease, Landlord
  shall restore the Building and the Leased Premises (to the extent of
  improvements to the Leased Premises originally provided by Landlord
  hereunder) with reasonable promptness, subject to delays beyond Landlord's
  control and delays in the making of insurance adjustments by Landlord, and
  Tenant shall have no right to terminate this Lease except as

  

 

13

 

	
   

  	
   

  	
  herein provided.  To the extent that the Premises are
  rendered untenantable, the rent shall proportionately abate, except in the
  event such damage resulted or was contributed to directly or indirectly, from
  the act, fault or neglect of Tenant, Tenant's officers, contractors, agents,
  employees, invitees or licensees, in which event rent shall abate only to the
  extent Landlord receives proceeds from Landlord's rental income Insurance
  policy to compensate Landlord for loss of rent.

  
	
   

  	
   

  	
   

  
	
  16.2         Destruction
  During Last Year of Term.

  	
   

  	
  In case the Building shall
  be substantially destroyed by fire or other cause at any time during the last
  twenty-four (24) calendar months of the Term or of any extensions or renewals
  thereof, either Landlord or Tenant may terminate this Lease upon written
  notice to the other party hereto given within sixty (60) days of the date of
  such destruction.

  
	
   

  	
   

  	
   

  
	
  16.3         Business
  Interruption.

  	
   

  	
  No damages, compensation
  or claim shall be payable by Landlord for inconvenience, loss of business or
  annoyance arising from any repair or restoration of any portion of the Leased
  Premises or of the Building. Landlord shall use its best efforts to effect
  such repairs promptly.

  
	
   

  	
   

  	
   

  
	
  16.4         Tenant
  Improvements.

  	
   

  	
  Landlord will not carry
  insurance of any kind on any improvements paid for by Tenant or on Tenant's
  furniture or furnishings or on any fixtures, equipment, improvements or
  appurtenances of Tenant under this Lease, and Landlord shall not be obligated
  to repair any damage thereto or replace the same.

  
	
   

  	
   

  	
   

  
	
  16.5         Express
  Agreement.

  	
   

  	
  The provisions of this
  Section shall be considered an express agreement governing any case of damage
  or destruction of the Building or Leased Premises by fire or other casualty.

  
	
   

  	
   

  	
   

  
	
  17.           SUBORDINATION
  AND ATTORNMENT: MORTGAGEE PROTECTION.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  17.1         Subordination.

  	
   

  	
  This Lease shall be
  subordinate to any existing or future mortgages or deeds of trust on the
  Building or on the leasehold interest held by Landlord, and to any
  extensions, renewals, or replacements thereof; provided, that the mortgagee
  or beneficiary, as the case may be, shall agree, in exchange for the
  agreement of Tenant to attorn to such mortgagee or beneficiary, to recognize
  this Lease in the event of foreclosure if Tenant is not in default at such
  time. At the request of Landlord, Tenant shall promptly execute and deliver
  all instruments which may be appropriate to further secure and document such
  subordination.

  
	
   

  	
   

  	
   

  
	
  17.2         Tenant’s
  Certificate.

  	
   

  	
  Tenant shall at any time
  and from time to time upon not less than twenty (20) days' prior written
  notice from Landlord execute, acknowledge and deliver to Landlord a statement
  in writing (a) certifying that this Lease is unmodified and in full force and
  effect (or, if modified, stating the nature of such modification and
  certifying that this Lease as so modified is in full force and effect), and
  the date to which the rental and other charges are paid in advance, if any,
  and (b) acknowledging that there are not, to Tenant's knowledge, any uncured
  defaults on the part of the Landlord hereunder, or specifying such defaults
  if any

  

 

14

 

	
   

  	
   

  	
  are claimed, and (c)
  setting forth the date of commencement of rents and expiration of the Term
  hereof. Any such statement may be relied upon by any prospective purchaser or
  encumbrancer of all or any portion of the Building.

  
	
   

  	
   

  	
   

  
	
  17.3         Mortgagee
  Protection Clause.

  	
   

  	
  Tenant agrees to give any
  mortgagees or deed of trust holders, by registered or certified mail, a copy
  of any notice of default served upon the Landlord, provided that prior to
  such notice Tenant has been notified in writing of the addresses of such
  mortgagees or deed of trust holders. Notwithstanding anything to the contrary
  in this Lease, the Landlord shall not be in default under any provision of
  this Lease unless written notice specifying such default is given to Landlord
  and to all persons who have an interest in all or part of the Building as
  mortgagee and/or deed of trust beneficiary, and the provisions of Section 15
  have been complied with. Tenant further agrees as follows: (i) if Landlord
  fails to cure or commence the cure of such default within the time period
  allowed under Section 15, above, then a mortgagee or deed of trust
  beneficiary shall have an additional thirty (30) days within which to cure
  such default; and (ii) if such default cannot be cured within that time, then
  a mortgagee or deed of trust beneficiary shall have such additional time as
  may be necessary if within such additional thirty (30) days any mortgagee or
  deed of trust beneficiary has commenced and is diligently pursuing the
  remedies necessary to cure such default (including but not limited to
  commencement of foreclosure proceedings if necessary to affect such cure), in
  which event this Lease shall not be terminated if such remedies are being so
  diligently pursued.

  
	
   

  	
   

  	
   

  
	
  18.           ACCESS
  BY LANDLORD.

  	
   

  	
  Landlord or Landlord's
  employees, agents, and contractors shall have the right to enter the Leased
  Premises with reasonable notice to examine the same or to make such repairs,
  alterations, improvements or additions as Landlord may deem necessary or
  desirable. If Tenant is not personally present to permit entry and an entry
  is necessary, Landlord may in case of emergency forcibly enter the same,
  without rendering Landlord liable therefor. Nothing contained herein shall be
  construed to impose upon Landlord any duty of repair of the Leased Premises
  or Building except as otherwise specifically provided for herein.

  
	
   

  	
   

  	
   

  
	
  19.           SURRENDER
  OR ABANDONMENT OF LEASED PREMISES.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  19.1         Surrender
  of Possession.

  	
   

  	
  Tenant shall promptly
  yield and deliver to Landlord possession of the Leased Premises at the
  expiration or prior termination of this Lease. Landlord may place and
  maintain a “For Rent” sign in conspicuous places on the Leased Premises for
  sixty (60) days prior to the expiration or prior termination of this Lease.

  
	
   

  	
   

  	
   

  
	
  19.2         Holding
  Over.

  	
   

  	
  Any holding over by Tenant
  after the expiration of the Term hereof, with Landlord's consent shall be
  construed to be a tenancy from month-to-month at the rents and on all of the
  terms and conditions set forth herein, to the extent not inconsistent with a
  month-to-month tenancy; provided, however, the Monthly Base Rent, at
  Landlord's discretion shall equal up to one hundred fifty percent (150%) of
  the Monthly Base Rent in effect immediately prior to such month to-month
  tenancy.

  

 

15

 

	
  19.3         Abandonment.

  	
   

  	
  Should Tenant abandon the
  Leased Premises or be dispossessed by process of law or otherwise for more
  than five (5) business days, such abandonment, vacation or dispossession
  shall be deemed a breach of this Lease, and, in addition to any other rights
  which Landlord may have, Landlord may remove any personal property belonging
  to Tenant which remains on the Leased Premises and store the same, the cost
  of such removal and storage to be charged to the account of Tenant.

  
	
   

  	
   

  	
   

  
	
  19.4         Voluntary
  Surrender.

  	
   

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

  
	
   

  	
   

  	
   

  
	
  20.           QUIET
  ENJOYMENT.

  	
   

  	
  Tenant, upon fully
  complying with and promptly performing all of the terms, covenants and
  conditions of this Lease on its part to be performed, and upon the prompt and
  timely payment of all sums due hereunder, shall have and quietly enjoy the
  Leased Premises for the Term set forth herein as against any adverse claim of
  Landlord or any party claiming under Landlord.

  
	
   

  	
   

  	
   

  
	
  21.           AUTHORITY
  OF PARTIES.

  	
   

  	
  If Tenant is a
  corporation, each individual executing this Lease on behalf of such
  corporation represents and warrants that he is duly authorized to execute and
  deliver this Lease on behalf of said corporation, in accordance with a duly
  adopted resolution of the board of directors of such corporation, that such
  action and execution is in accordance with the bylaws of such corporation,
  and that this Lease is binding upon such corporation in accordance with its
  terms. Tenant has designated the person named in Section 1.1 as Tenant's
  Representative. Landlord may rely on all communications and statements of the
  Tenant's Representative as the authorized communications and statements of
  Tenant. Tenant may notify Landlord that another individual is the Tenant's
  Representative and Landlord may rely on the communications and statements of
  such individual.

  
	
   

  	
   

  	
   

  
	
  22.           SIGNS.

  	
   

  	
  Tenant shall not place or
  suffer to be placed on the exterior walls of the Leased Premises or upon the
  roof or any exterior door or wall or on the exterior or interior of any
  window thereof any sign, awning, canopy, marquee, advertising matter,
  decoration, letter or other thing of any kind (exclusive of the signs, if
  any, which may be provided for in the original construction or improvement
  plans and specifications approved by the Landlord or Tenant hereunder),
  without the prior written consent of Landlord.

  
	
   

  	
   

  	
   

  
	
  23.           MISCELLANEOUS.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  23.1         Tenant
  Defined.

  	
   

  	
  The word “Tenant” as used
  herein shall mean each and every person, partnership or corporation who is
  mentioned as a Tenant herein or who executes this Lease as Tenant.

  
	
   

  	
   

  	
   

  
	
  23.2         Broker’s
  Commission.

  	
   

  	
  Tenant represents and
  warrants that it has incurred no liabilities or claims for brokerage
  commissions or finder's fees in connection with the execution of this Lease
  and that it has not dealt with or has any knowledge of any real estate
  broker, agent or salesperson in connection with this Lease except the Broker
  whose name is set forth in 

  

 

16

 

	
   

  	
   

  	
  Subsection 1.1. Tenant
  agrees to indemnify and hold Landlord harmless from all such liabilities or
  claims (including, without limitation, attorneys' fees).

  
	
   

  	
   

  	
   

  
	
  23.3         Partial
  Invalidity.

  	
   

  	
  If any term, covenant, or
  condition of this Lease or the application thereof to any person or
  circumstances is, to any extent, invalid or unenforceable, the remainder of
  this Lease, or the application of such term, covenant or condition to persons
  or circumstances other than those as to which it is held invalid or
  unenforceable, shall not be affected thereby and each term, covenant or
  condition of this Lease shall be valid and be enforced to the fullest extent
  permitted by law.

  
	
   

  	
   

  	
   

  
	
  23.4         Recording.

  	
   

  	
  Tenant shall not record
  this Lease without the prior written consent of Landlord. However, upon the
  request of Landlord or Tenant, both parties shall execute a memorandum of
  “short form” of this Lease for the purposes of recordation in a form
  customarily used for such purposes. Said memorandum or short form of this
  Lease shall describe the parties, the Leased Premises and the Term and shall
  incorporate this Lease by reference.

  
	
   

  	
   

  	
   

  
	
  23.5         Notices.

  	
   

  	
  Any notice required in
  accordance with any of the provisions herein if to Landlord shall be
  delivered or mailed by registered or certified mail to the address of
  Landlord as set forth by the signature of the Parties, or at such other place
  as Landlord may in writing from time to time direct to Tenant, and if to
  Tenant, shall be delivered or mailed by registered or certified mail to
  Tenant at the Leased Premises or at such other place as Tenant may in writing
  from time to time direct to Landlord. If there is more than one Tenant, any
  notice required or permitted hereunder may be given by or to any one thereof,
  and shall have the same force and effect as if given by or to all thereof.

  
	
   

  	
   

  	
   

  
	
  23.6         Waiver.

  	
   

  	
  The waiver by Landlord or
  Tenant of any term, covenant or condition herein contained shall not be
  deemed to be a waiver of such term, covenant or condition or any subsequent
  breach of the same or any other term, covenant or condition herein contained.
  The subsequent acceptance of Monthly Base Rent, additional rent or sum
  hereunder by Landlord shall not be deemed to be a waiver of any preceding
  default by Tenant of any term, covenant or condition of this Lease,
  regardless of Landlord's knowledge of such preceding default at the time of
  the acceptance of such sum.

  
	
   

  	
   

  	
   

  
	
  23.7         Joint
  Obligation.

  	
   

  	
  If there is more than one
  Tenant, the obligations hereunder imposed shall be joint and several.

  
	
   

  	
   

  	
   

  
	
  23.8.        Time.

  	
   

  	
  Time is of the essence of
  this Lease and each and all of its provisions in which performance is a
  factor.

  
	
   

  	
   

  	
   

  
	
  23.9         Successors
  and Assigns.

  	
   

  	
  All the terms, conditions,
  covenants and agreements of this Lease shall extend to and be binding upon
  Landlord, Tenant and their respective heirs, administrators, executors,
  successors and assigns, and upon any person or persons coming into ownership
  or possession of any interest in the Leased Premises by operation of law or
  otherwise, and shall be construed as covenants running with the land.

  

 

17

 

	
  23.10       Prior
  Agreements.

  	
   

  	
  This Lease contains all of
  the agreements of the parties hereto with respect to any matter covered or
  mentioned in this Lease, and no prior agreements or understanding pertaining
  to any such matters shall be effective for any purpose. No provisions of this
  Lease may be amended or added to except by an agreement in writing signed by
  the parties hereto or their respective successors in interest. This Lease
  shall not be effective or binding on any party until fully executed by both
  parties hereto.

  
	
   

  	
   

  	
   

  
	
  23.11       Choice
  of Law.

  	
   

  	
  This Lease shall be
  governed by the laws of the State of Oregon.

  

 

IN WITNESS WHEREOF, the
parties hereto have executed this instruments the day and year first above set
forth.

 

	
  LANDLORD:

  	
  TENANT:

  
	
   

  	
   

  
	
  ALCO
  INVESTMENT COMPANY

  	
  ADVANCED
  TELECOMMUNICATIONS INC.

  
	
   

  	
   

  
	
  By:

  	
  /s/ Douglas C. Rosen

  	
   

  	
  By:

  	
  /s/ Satish C. Tiwari

  	
   

  
	
   

  	
  Secretary

  	
   

  	
  Vice
  President

  
	
   

  	
  921 SW
  Washington, Suite 100

  	
   

  	
  730 Second
  Avenue South, Ste 1200

  
	
   

  	
  Portland,
  OR  97205

  	
   

  	
  Minneapolis,
  MN  55402

  
						

 

18

 

	
  STATE OF MINNESOTA

  	
  )

  	
   

  	
  

  
	
   

  	
  )SS

  
	
  COUNTY OF HENNEPIN)

  	
  )

  

 

The forgoing instrument was acknowledged before me this
       day of November, 1999, by Satish Tiwari,
the Vice-President/Engineering and Network Implementation of ADVANCED
TELECOMMUNICATIONS, INC., a Delaware corporation, on behalf of the corporation.

 

 

	
   

  	
  By:

  	
  /s/ Michele J. Speranza

  	
   

  
	
   

  	
  Notary Public

  

 

 

	
  STATE OF:

  	
   

  	
  )

  
	
   

  	
  )     ss.

  
	
  COUNTY OF:

  	
   

  	
  )

  
				

 

I certify that I know or have satisfactory evidence that Douglas C.
Rosen signed this instrument, on oath stated that he was authorized to execute
the instrument, and acknowledged it as the Secretary of Alco Investment Company
to be free and voluntary act of such corporation for the uses and purposes
mentioned in the instrument.

 

	
  

  	
  Dated:

  	
   

  	
   

  
	
  Before me: 

  	
  /s/Julia A. Spilker

  	
   

  
	
  Notary Public for 

  	
   

  	
   

  
	
  My commission expires:

  	
   

  	
   

  
							

 

	
  STATE OF:

  	
   

  	
  )

  
	
   

  	
  )     ss.

  
	
  COUNTY OF:

  	
   

  	
  )

  
				

 

I certify that I know or have satisfactory evidence that signed this
instrument, on oath stated that he/she was authorized to execute the
instrument, and acknowledged it as the of Advanced Telecommunications, Inc. to
be free and voluntary act of such corporation for the uses and purposes
mentioned in the instrument.

 

	
   

  	
  Dated:

  	
   

  	
   

  
	
   

  	
  Before me:

  	
   

  	
   

  
	
   

  	
  Notary Public for

  	
   

  	
   

  
	
   

  	
  My commission expires:

  	
   

  	
   

  
							

 

 

EXHIBIT A

 

TO

 

PITTOCK BLOCK LEASE

 

Legal Description of Building

 

Lots 1 through 8 inclusive, Block 215, CITY OF PORTLAND, in the City of
Portland, County of Multnomah and State of Oregon.

 

 

 

Addendum

To

Pittock Block Lease

 

Base Rent Escalation

 

This Addendum to the Pittock Block Lease is entered into between the
Landlord and Tenant executing this Addendum for the purpose of amending such
Lease as provided herein.

 

1.                                       On
the first anniversary of the Commencement Date and on each anniversary date
thereafter during. the Lease Term, (the “Escalation Dates”), the Base Rent
shall be increased by the Percentage Increase, if any. The “Percentage
Increase” shall mean the percentage increase, if any, in the United States
Consumer Price Index (as revised), All Urban Consumers, All Items, West-A
(Base: 1982 -1984 = 100), as published or issued by the United States
Department of Labor, Bureau of Labor Statistics (the “CPI Index”), computed
from the Base Date to the Comparison Date, as defined below. The “Comparison
Date” shall mean the date on which the most recent Index figure was published
or issued prior to the subject Escalation Date. The “Base Date” shall mean the
date on which the most recent Index figure was published prior to the
Commencement Date. If the Comparison Date precedes the subject Escalation Date
by more than four (4) calendar months, the CPI Index shall be deemed “no longer
published or issued,” and a substitute index or procedure shall be used as
provided below. If at any time prior to the subject Escalation Date the Index is
no longer published or issued, the parties shall use a substitute index, if
available, or a substitute procedure , to determine the “Percentage Increase”
which accurately reflects the increase in prices in a representative sample of
consumer goods and services in major expenditure groups, such as food, housing,
apparel, transportation, health and recreation, in the Portland, Oregon
metropolitan area from the Base Date to the Comparison Date. If the parties are
unable to agree, within thirty (30) days after demand of one (1) party on the
selection of a substitute index or procedure to replace the CPI Index, or if
there is a dispute with respect to the computation of any rental adjustment as
herein provided, the selection or computation shall be made by arbitration
pursuant to Section 2 of this Addendum.

 

2.                                       If
any controversy, claim or dispute arises in connection with any provision of
this Addendum which expressly provides for resolution thereof by arbitration
pursuant to the terms of this Section 2, the same shall be submitted to
arbitration at the offices of the American Arbitration Association (“AAA”) in
Portland, Oregon before a single arbitrator pursuant to the Commercial
Arbitration Rules of the AAA. If the AAA is not then functioning, the
arbitration shall be conducted in accordance with the requirements of O.R.S.
33.210-.340, and, if the parties are unable to agree upon an arbitrator within
ten (10) days of one party’s notice of demand for arbitration to the other,
either party may petition the Presiding Judge of Multnomah County Circuit Court
to appoint the arbitrator. The arbitrator appointed by the AAA or the Presiding
Judge of Multnomah County Circuit Court shall be a person who has substantial
experience in the Portland, Oregon area in the professional area which is at
issue in the arbitration. Whether arbitration is conducted pursuant to the
Commercial Arbitration Rules of the AAA or O.R.S. 33.210-.340, the arbitrator
shall endeavor to promptly conduct and conclude the arbitration hearing within
sixty (60) days of his appointment. The arbitrator shall render his decision.
within twenty (20) days of the conclusion of the arbitration hearing. The
decision of the arbitrator shall be final and binding upon the parties and
shall constitute a final adjudication of all matters submitted to arbitration.
A judgment on the arbitrator’s award may be entered in Multnomah County Circuit
court and enforced as if the award were a judgment of such court.

 

3.                                       Except
as expressly provided herein, all other provisions of the Lease and the
Exhibits and Addenda thereto shall remain as set forth therein. In the event of
a conflict between this Addendum and the Lease proper, the provisions of this
Addendum shall prevail.

 

	
  LANDLORD:

  	
    TENANT:

  
	
   

  	
   

  
	
  ALCO INVESTMENT COMPANY

  	
    ADVANCED TELECOMMUNICATIONS INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
      /s/Douglas C. Rosen

  	
   

  	
  By:

  	
      /s/Satish C. Tiwari

  	
   

  
	
   

  	
  Douglas C. Rosen, Secretary

  	
   

  	
  Satish C. Tiwari, Vice President

  
	
   

  	
  North American Carrier Services

  	
   

  	
  Engg & Net. Imptn.

  
						

 

 

Market Rental Adjustment

 

This Addendum to the Pittock Block Lease is entered into between the
Landlord and Tenant executing this Addendum for the purpose of amending such
Lease as provided herein.

 

At the beginning of the sixth year of the Lease Term the Monthly Base
Rent for the Leased Premises shall be adjusted to the then Market Rental of the
Building. The Market Rental shall be specified by the Landlord sixty (60) days
in advance of the adjustment date and shall be the then current monthly rental
rate being offered by Landlord to other telecommunication companies in the
Building. In no event shall the Market Rental be less than the Base Rent
established by Landlord in its most recent lease agreement prior to the
adjustment date with a third party telecommunications tenant in the Building.

 

If the parties are still in disagreement twenty (20) days after
delivery of such notice from Landlord to Tenant, Landlord and Tenant shall
immediately choose an M.A.I. appraiser who shall determine the Market Rental
for the Premises as provided herein. If Landlord and Tenant are unable to agree
on the selection of an appraiser, either party may petition the Presiding Judge
of Multnomah County Circuit Court who shall select the appraiser. Until the
Market Rental is determined as provided herein, the Tenant shall pay Base Rent
based on the Market Rental specified by the Landlord, and if the Market Rental
is subsequently determined to be different than the Market Rental specified by
the Landlord, the Landlord or Tenant, as the case may be, shall reimburse the other
for such difference.

 

2.                                       Except
as expressly provided herein, all other provisions of the Lease and the’
Exhibits and Addenda thereto, shall remain as set forth therein. In the event
of a conflict between this Addendum and the Lease proper, the provisions of the
Addendum shall prevail.

 

	
  LANDLORD:

  	
    TENANT:

  
	
   

  	
   

  
	
  ALCO INVESTMENT COMPANY

  	
    ADVANCED TELECOMMUNICATIONS INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
      /s/Douglas C. Rosen

  	
   

  	
  By:

  	
      /s/Satish C. Tiwari

  	
   

  
	
   

  	
  Douglas C. Rosen, Secretary

  	
   

  	
  Satish C. Tiwari, Vice President

  
	
   

  	
  North American Carrier Services

  	
   

  	
  Engg & Net. Imptn.

  
						

 

 

Cooling Tower Connection Fee

 

This Addendum to the Pittock Block Lease is entered into between the
Landlord and Tenant executing this Addendum for the purpose of amending such
Lease as provided herein.

 

Tenant shall have the right and hereby agrees to connect forty-five
(45) tons of capacity to Landlord’s common cooling tower system to serve
Tenant’s air conditioning equipment in the Leased Premises subject to the
following provisions:

 

1.                                       The
one time connection fee is forty-five thousand dollars ($45,000.00), payable to
Landlord within 30 days of the connection or within six months of the
Commencement Date of the Lease Term, whichever occurs first.

 

2.                                       In
addition to the connection fee, all engineering, permits and installation costs
shall be at Tenant’s expense. Tenant shall not make any connection to
Landlord’s common cooling tower system without Landlord’s prior written
approval of engineering and installation specifications, which consent is
subject to such conditions and building standards as Landlord deems reasonably
appropriate.

 

3.                                       In
addition to Monthly Base Rent, Other Charges and all other amounts due from
Tenant under this Lease, Tenant shall pay its pro rata share of all costs and
expenses associated with the cooling tower system, including but not limited to
chemical treatment, maintenance, repair and replacement expenses. Tenant’s pro
rata share for purposes of this section shall be based on the connected
load of Tenant compared to the total connected capacity of the cooling tower
system. Payment must be made within ten days of receipt of invoice.

 

Except as expressly provided herein, all other provisions of the Lease
and the Exhibits and Addenda thereto, shall remain as set forth therein. In the
event of a conflict between this Addendum and the Lease proper, the provisions
of the Addendum shall prevail.

 

	
  LANDLORD:

  	
    TENANT:

  
	
   

  	
   

  
	
  ALCO INVESTMENT COMPANY

  	
    ADVANCED TELECOMMUNICATIONS INC.

  
	
   

  	
   

  
	
  By:

  	
      /s/Douglas C. Rosen

  	
   

  	
  By:

  	
      /s/Satish C. Tiwari

  	
   

  
	
   

  	
  Douglas C. Rosen, Secretary

  	
   

  	
  Satish C. Tiwari, Vice President

  
	
   

  	
  North American Carrier Services

  	
   

  	
  Engg & Net. Imptn.

  
						

 

 

Primary Electrical Connection Fee

 

This Addendum to the Pittock Block Lease is entered into between the
Landlord and Tenant executing this Addendum for the purpose of amending such
Lease as provided herein.

 

Tenant shall have the right and hereby agrees to connect 600 amps at
480 volt electrical service capacity to Landlord’s common system, subject to
the following provisions:.

 

1.                                       The
one time connection fee one hundred thirty-five thousand dollars ($135,000.00),
payable to Landlord within 30 days of the connection or within six months of
the Commencement Date of the Lease Term, whichever occurs first.

 

2.                                       In
addition to the connection fee, all engineering, permits, installation and
connection costs shall be at Tenant’s expense. Tenant shall not make any
connection to Landlord’s common electrical system without Landlord’s prior
written approval of engineering and installation specifications, which consent
is subject to such conditions and building standards as Landlord deems
appropriate.

 

3.                                       In
addition to Monthly Base Rent, Other Charges and all other amounts due from
Tenant under this Lease, Tenant shall pay its pro rata share of all costs and
expenses associated with the electrical system, including but not limited to
maintenance, repair and replacement expenses. Tenant’s pro rata share for
purposes of this section shall be based on the connected load of Tenant
compared to the total connected capacity of the electrical system. Payment must
be made within ten days of receipt of invoice.

 

Except as expressly provided herein, all other provisions of the Lease
and the Exhibits and Addenda thereto, shall remain as set forth therein. In the
event of a conflict between this Addendum and the Lease proper, the provisions
of the Addendum shall prevail.

 

	
  LANDLORD:

  	
    TENANT:

  
	
   

  	
   

  
	
  ALCO INVESTMENT COMPANY

  	
    ADVANCED TELECOMMUNICATIONS INC.

  
	
   

  	
   

  
	
  By:

  	
      /s/Douglas C. Rosen

  	
   

  	
  By:

  	
      /s/Satish C. Tiwari

  	
   

  
	
   

  	
  Douglas C. Rosen, Secretary

  	
   

  	
  Satish C. Tiwari, Vice President

  
	
   

  	
  North American Carrier Services

  	
   

  	
  Engg & Net. Imptn.

  
						

 

 

Emergency Generator Connection Fee

 

This Addendum to the Pittock Block Lease is entered into between the
Landlord and Tenant executing this Addendum for the purpose of amending such
Lease as provided herein.

 

Tenant shall have the right and hereby agrees to connect 400 amps at
480 volt three phase emergency generator service capacity to Landlord’s common
system, subject to the following provisions:

 

1.                                       The
one time connection fee is four hundred thousand dollars ($400,000.00). Tenant
has elected to make an initial payment of one hundred two thousand, five
hundred dollars ($102,500.00) at the time of connection which the parties agree
with occur on July 1, 2000. The remaining balance of the connection fee is
two hundred ninety-seven thousand, five hundred dollars ($297,500.00) and shall
be fully amortized over forty-two (42) months at the annualized interest rate
of ten percent (10.0%). Therefore, in addition to the initial connection fee of
one hundred two thousand, five hundred dollars ($102,500.00), the Monthly Base
Rent and all other amounts due under the Lease, Tenant shall pay as additional
Monthly Base Rent the amount of six thousand, eight hundred sixty-four dollars
($6,864.00) per month commencing on July 1, 2000 and continuing each month
thereafter until December 1, 2003.

 

2.                                       In
addition to the connection fee, all engineering, permits, installation and
connection costs shall be at Tenant’s expense. Tenant shall not make any
connection to Landlord’s common emergency generator system without Landlord’s
prior written approval of engineering and installation specifications, which
consent is subject to such conditions and building standards as Landlord deems
reasonably appropriate.

 

3.                                       In
addition to Monthly Base Rent, Other Charges and all other amounts due from
Tenant under this Lease, Tenant shall pay its pro rata share of all costs and
expenses associated with the emergency generator system, including but not
limited to maintenance, repair and replacement expenses. Tenant’s pro rata
share for purposes of this section shall be based on the connected load of
Tenant compared to the total connected capacity of the emergency generator system.
Payment must be made within 30 days of receipt of invoice.

 

Except as expressly provided herein, all other provisions of the Lease
and the Exhibits and Addenda thereto, shall remain as set forth therein. In the
event of a conflict between this Addendum and the Lease proper, the provisions
of the Addendum shall prevail.

 

	
  LANDLORD:

  	
    TENANT:

  
	
   

  	
   

  
	
  ALCO INVESTMENT COMPANY

  	
    ADVANCED TELECOMMUNICATIONS INC.

  
	
   

  	
   

  
	
  By:

  	
      /s/Douglas C. Rosen

  	
   

  	
  By:

  	
      /s/Satish C. Tiwari

  	
   

  
	
   

  	
  Douglas C. Rosen, Secretary

  	
   

  	
  Satish C. Tiwari, Vice President

  
	
   

  	
  North American Carrier Services

  	
   

  	
  Engg & Net. Imptn.

  
						

 

 

Connectivity Right

 

This Addendum to the Pittock Block Lease is entered into between the
Landlord and Tenant executing this Addendum for the purpose of amending such
Lease as provided herein.

 

1.                                       Cross
Connect Facility. Tenant shall have the right to share usage of Landlord’s
common telecommunication Cross Connect Facility (“CCF”) only in accordance with
the following provisions:

 

a.                                       All cabling
shall be provided by Tenant at Tenant’s expense. Landlord shall supervise the
maintenance and use of the CCF.

 

b.                                      Tenant
shall abide by the regulations, specifications and standards established by
Landlord from time to time governing the use of the CCF.

 

c.                                       Tenant
shall pay cross connect fees to Landlord pursuant to the following schedule:

 

	
   

  	
   

  	
  Copper CCF

  	
   

  	
  Fiber CCF

  	
   

  
	
  One time entry fee:

  	
   

  	
  $

  	
  1000.00

  	
   

  	
  $

  	
  1000.00

  	
   

  
	
  One time per panel fee:

  	
   

  	
  375.00

  	
   

  	
  200.00

  	
   

  
	
  Monthly per panel fee:

  	
   

  	
  75.00

  	
   

  	
  100.00

  	
   

  
								

 

(1)                                  The
above fees are based on Landlord’s current building standard equipment
schedule with the following cross connect capacities:

 

DS1 cross connect panels are 56 position

DS3 cross connect panels are 24 position

Fiber cross connect panels are 6 fiber

 

In the event Landlord changes the building standard equipment
specification, the monthly panel fee shall be modified, if necessary, to
maintain the same fee per position.

 

d.                                      Cross
connect fees shall be adjusted to Landlord’s then rates in the Building at the
beginning of the sixth year of the Lease Term and at each renewal option
period, but shall in no event be less than the greater of (i) the amounts set
forth above, or (ii) the amounts determined in any previous adjustment.

 

2.                                       Cabling
Right of Way. Landlord gives Tenant the right of way to install cable from
the Leased Premises to the Cross Connect Facility subject to the following
provisions:

 

a.                                       Such
installation is at Tenant’s expense and subject to the regulations,
specifications and standards established by Landlord.

 

b.                                      Such
installation must be coordinated with and approved by the Pittock Block
Building engineer.

 

c.                                       Tenant
shall pay its pro rata share of common conduit attachment structures or pathway
improvements provided by Landlord.

 

3.                                       Direct
Tenant to Tenant Connection Not Allowed. Tenant is not allowed to make or
accept direct connections to other telecommunication, internet and present or
future equivalent tenants’ Leased Premises within the Building. All connections
between telecommunications tenants within the Building must occur in the CCF as
defined above.

 

 

Page Two

Connectivity Right Addendum

 

Except as expressly provided herein, all other provisions of the Lease
and the Exhibits and other Addenda thereto shall remain as set forth therein.
In the event of a conflict between this Addendum and the Lease proper, the
provisions of this Addendum shall prevail.

 

	
  LANDLORD:

  	
    TENANT:

  
	
   

  	
   

  
	
  ALCO INVESTMENT COMPANY

  	
    ADVANCED TELECOMMUNICATIONS INC.

  
	
   

  	
   

  
	
  By:

  	
      /s/Douglas C. Rosen

  	
   

  	
  By:

  	
      /s/Satish C. Tiwari

  	
   

  
	
   

  	
  Douglas C. Rosen, Secretary

  	
   

  	
  Satish C. Tiwari, Vice President

  
	
   

  	
  North American Carrier Services

  	
   

  	
  Engg & Net. Imptn.

  
						

 

 

RULES AND REGULATIONS

 

1.                                       No
sign, placard, picture, advertisement, name or notice shall be posted or
affixed on or to any part of the outside of the Building or the Premises
without the prior written consent of Landlord, and Landlord shall have the
right to remove any sign, placard, picture, advertisement, name or notice
posted in violation of this rule, without notice to and at the expense of
Tenant.

 

2.                                       The
directory of the Building will be provided exclusively for the display of the
name and location of tenants and Landlord reserves the right to exclude any
other names therefrom. Landlord reserves the right to restrict the amount of
directory space utilized by any Tenant.

 

3.                                       The
sidewalks, halls, passages, exits, entrances, elevators and stairways shall not
be obstructed by any Tenant or used for any purpose other than for ingress and
egress from the Premises. The halls, passages, exits, entrances, elevators,
stairways, balconies and roof are not for the use of the general public and the
Landlord shall in all cases retain the right to control and prevent access
thereto by all persons whose presence in the judgement of the Landlord shall be
prejudicial to the safety, character, reputation and interests of the Building
and its tenants. No Tenant and no employees, invitees or licensees of any
Tenant shall enter the mechanical rooms, electrical closets, janitorial
closets, or similar area or go upon the roof of the Building without the prior
written consent of the Landlord.

 

4.                                       The
Landlord shall designate appropriate entrances and a “freight” elevator for
deliveries or other movement to or from the Premises of equipment, materials,
supplies, furniture and other bulky or heavy articles, and Tenant shall not use
any other entrances or elevators for such purposes. The freight elevator shall
be available for use by Tenants in the building, subject to such reasonable
scheduling as Landlord in its discretion shall deem appropriate. All means or
methods used to move equipment, materials, supplies, furniture or other
property in or out of the Building must be approved by Landlord prior to any
such movement. All floors must be properly protected including hallway, lobby
and elevator carpet. Landlord will not be responsible for loss of or damage to
any property during movement into or out of the Building or Premises, and all
damage to the Building during the course of moving any article of Tenant’s
property shall be repaired at the expense of Tenant. Tenant shall move all
freight, supplies, furniture, fixtures and other personal property only at such
times as may be designed by Landlord. Unattended vehicles will be towed at the
owner’s expense.

 

5.                                       Tenant
shall not place or keep furniture or other items on the terraces or roof of the
Building without first obtaining the written approval of the Landlord. Tenant
shall not place any item of any nature on any window sill.

 

6.                                       Landlord
reserves the right to exclude from the building between the hours of 5:30 p.m.
and 7:00 a.m. and at all hours on Saturdays, Sundays and legal holidays all
persons who do not present identification acceptable to Landlord. Each Tenant
shall provide Landlord with a list of all persons authorized by Tenant to enter
its Premises and shall be liable to Landlord for any loss or injury to the
property of the Landlord or other tenants caused by such persons. Landlord
shall in no case be liable to anyone for any error with regard to the admission
to or exclusion from the Building of any person. In the case of invasion, mob,
riot, public excitement or other circumstances rendering such action advisable
in Landlord’s opinion, Landlord reserves the right to prevent access to the
Building during the continuance of the same by such action as Landlord may deem
appropriate, including closing doors.

 

7.                                       The
restrooms and the fixtures and equipment contained therein shall not be used
for any purpose other than that for which they were constructed. Restroom
fixtures shall not be used for the disposal of foreign substances (e.g. coffee
grounds) and the expense of any 

 

 

breakage, stoppage or damage resulting from violation of this rule
shall be borne by the responsible Tenant.

 

8.                                       Except
with the prior written consent of Landlord, no person other than those employed
by Landlord shall be permitted to enter the Building for the purpose of
cleaning the same or providing janitorial services. Tenant shall exercise due
care to preserve the good order and cleanliness of the Premises.

 

9.                                       Tenant
shall not permit the Premises to be occupied or used in a manner offensive or
objectionable to the other occupants of the building, persons having business
therein, or the occupants of neighboring buildings. Specifically, tenants shall
not use, keep or permit to be used or kept any noxious gas or odorous substance
in the Premises. Tenant shall not allow any animals of any kind to be brought
into or kept in or about the Premises of the Building. Tenant shall not make or
permit to be made any loud or disturbing noises, whether by any musical
instrument, radio, phonograph, appliance, or in any other way. Tenant shall not
install any radio or television antenna, loudspeaker, or other device on the
roof or exterior walls or windows of the Building.

 

10.                                 Tenants
shall not use or keep in the Premises or the Building any kerosene, gasoline,
combustible fluid, toxic chemical, radioactive substance or other dangerous
material.

 

11.                                 Tenant
shall not disturb, solicit, or canvass any occupant of the building and shall
cooperate to prevent same.

 

12.                                 All
keys to offices, rooms and restrooms shall be obtained from Landlord’s building
management office. Tenant shall not duplicate keys or have keys made. Tenant,
upon termination of the tenancy, shall deliver to the Landlord all keys which
shall have been furnished to Tenant by the Landlord. In the event that Tenant
or Tenant’s employees or visitors lose a key, Tenant shall pay Landlord the
cost of replacing same or of changing the lock or locks opened by such lost key
if Landlord deems it necessary to make such change.

 

13.                                 Tenant
shall not lay linoleum, tile, carpet or other similar floor covering so that
the same shall be affixed to any floor of the Premises in any manner except as
approved by the Landlord. The expense of repairing any damage resulting from a
violation of this rule or of removing any floor coverings affixed in violation
of this rule shall be borne by the Tenant.

 

14.                                 Before
leaving the Building, Tenant and Tenant’s employees shall (1) see that the
doors of the Premises are closed and securely locked; (2) shut off all water
faucets and water-using appliances so as to prevent waste or damage. Tenant
shall indemnify the Landlord and other tenants for any injuries sustained by
any of them as a result of any violation of this rule.

 

15.                                 Landlord
reserves the right to exclude or expel from the Building any person who, in the
judgement of Landlord, is intoxicated or under the influence of liquor or
drugs, or who shall in any manner do any act in violation of any of the Rules
and Regulations of the Building.

 

16.                                 The
requirements of Tenant will be attended to only upon application at the
Building management office. Employees of Landlord shall not perform any work or
do anything outside of their regular duties unless under special instructions
from the Landlord, and no employee will admit any person (Tenant or otherwise)
to any office without specific instruction from the Landlord.

 

17.                                 Landlord
shall have the right, exercisable without notice and without liability to
Tenant, to change the name and street address of the Building of which the
Premises are a part.

 

18.                                 Without
the prior written consent of Landlord, Tenant shall not use the name of the
Building to promote or advertise the business of Tenant except as Tenant’s
address.

 

19.                                 Tenant
agrees to comply with all fire and security regulations that may be issued from
time to time by Landlord. Tenant shall also provide Landlord with the name of a
designated

 

 

responsible employee to represent Tenant in all matters pertaining to
fire or security regulations.

 

20.                                 Tenant
shall not utilize electrical extension cords unless such cords are equipped
with a built in circuit breaker.

 

21.                                 No
curtains, draperies, blinds, shutters, shades, screens or other coverings,
hanging or decorations shall be attached to, hung or placed in, or used in
connection with any window of the Building without the prior written consent of
Landlord. Such window coverings as the Landlord does approve shall be installed
on the office side of Landlord’s standard window covering and shall in no way
be visible from the exterior of the Building.

 

22.                                 Except
with the prior written consent of Landlord, Tenant shall not sell any retail
merchandise in’ or on the Premises, including but not limited to the sale to
the public of newspapers, magazines, periodicals, theater or travel tickets or
any other goods or merchandise. Tenant shall not carry on or permit any
employee or other person to carry on the business of stenography, typewriting,
printing or photocopying or any similar business in or from the Premises for
the service or accommodation of other occupants in the Building, nor shall the
Premises of Tenant be used for manufacturing of any kind, for lodging of any
kind, or for any business or activity other than that specified in the Tenant’s
Lease Agreement.

 

23.                                 Tenant
shall store all its trash and garbage within its Premises. No material shall be
placed in the hallways or left for disposal by the Landlord. All garbage and
refuse disposal shall be made only through entryways and elevators provided for
such purposes and at such times as Landlord shall designate.

 

24.                                 Tenant
shall not mark, paint, drive nails or drill into, cut, string wires within, or
in any way deface any part of the Building or the Premises, without the prior
written consent of Landlord and as Landlord may direct. Should Landlord grant
approval, Tenant agrees to assume full responsibility and warrants that
Tenant’s contractor will strictly abide by Landlord’s guidelines for work
contracted directly by Tenant. Upon removal of any and all decorations or
installations of floor covering by Tenant, any damage to walls or floor shall
be repaired by Tenant at Tenant’s sole cost and expense. This paragraph shall
apply to all work performed in the Building, including without limitation
installation of telephone or computer equipment, electrical devices and
attachments and installations of any nature affecting floors, walls, woodwork,
trim, windows, ceilings, equipment or any other portion of the Building. Plans
and specifications for such work, prepared at Tenant’s sole expense, shall be
submitted to Landlord and shall be subject to Landlord’s prior written approval
in each instance before the commencement of work. All installations, alterations,
and additions shall be constructed by Tenant in a good and workmanlike manner
and only good grades of materials shall be used in connection therewith. Tenant
shall obtain any and all necessary or required permits for any such work at its
sole cost and expense.

 

25.                                 Landlord
reserves the right to rescind, alter or waive, by written notice to Tenant, any
rule or regulation prescribed for the Building when, in Landlord’s judgement,
it is necessary, desirable or proper to take such action in the best interest
of the Building and its tenants. The waiver of a rule or regulation for the
benefit of a particular tenant or tenants shall not be construed as a waiver of
such rule or regulation in favor of any other tenant or tenants, nor shall any
such waiver prevent Landlord from thereafter enforcing the rules or regulation
in question against any or all tenants of the building.

 

26.                                 These
Rules and Regulations supplement and shall not be construed to modify or amend
the provisions of the Lease Agreement or other agreement between Landlord and
Tenant. In the event of any conflict between these Rules and Regulations and
the Lease Agreement and any agreement executed by Landlord and Tenant, the
Lease Agreement shall prevail.

 

27.                                 Smoking
of any kind is prohibited in all common areas within the Building including but
not limited to the lobby, hallways, passageways, exits, entrances, elevators,
stairways, restrooms and within thirty (30) feet of exterior Building
entryways. Cigar and pipe smoking is prohibited throughout the entire Building.

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