Document:

Exhibit
10.3

 

MEDICOR
LTD. AMENDED AND RESTATED

1999 STOCK COMPENSATION PROGRAM

 

1.             Purpose.  This MediCor Ltd. Amended and Restated 1999
Stock Compensation Program (the “Program”) is intended to secure for
MediCor Ltd. (the “Company”), its subsidiaries, and its
stockholders the benefits arising from ownership of the Company’s common stock
(the “Common
Stock”) by those selected individuals of the Company and its
subsidiaries, who will be responsible for the future growth of such
corporations.  The Program is designed
to help attract and retain superior personnel for positions of substantial
responsibility with the Company and its subsidiaries, and to provide
individuals with an additional incentive to contribute to the success of the
corporations.  Nothing contained herein
shall be construed to amend or terminate any existing options, whether pursuant
to any existing plans or otherwise granted by the Company.

 

2.             Elements of the
Program.  In order to maintain
flexibility in the award of stock benefits, the Program is composed of seven
parts.  The first part is the Incentive
Stock Option Plan (the “Incentive Plan”) under which are granted
incentive stock options (the “Incentive Options”).  The second part is the Non-Qualified Stock
Option Plan (the “Nonqualified Plan”) under which are granted nonqualified
stock options (the “Nonqualified Options”). The third part is
the Restricted Share Plan (the “Restricted Plan”) under which are granted
restricted shares of Common Stock.  The
fourth part is the Employee Stock Purchase Plan (the “Stock Purchase Plan”).  The fifth part is the Non-Employee Director
Stock Option Plan (the “Directors Plan”) under which grants of
options to purchase shares of Common Stock may be made to non-employee
directors of the Company.  The sixth
part is the Stock Appreciation Rights Plan (the “SAR Plan”) under which SARs
(as defined therein) are granted.  The
seventh part is the Other Stock Rights Plan (the “Stock Rights Plan”) under
which (i) units representing the equivalent of shares of Common Stock (the “Performance
Shares”) are granted; (ii) payments of compensation in the form of
shares of Common Stock (the “Stock Payments”) are granted; and (iii)
rights to receive cash or shares of Common Stock based on the value of
dividends paid with respect to a share of Common Stock (the “Dividend
Equivalent Rights”) are granted. 
The Incentive Plan, the Nonqualified Plan, the Restricted Plan, the
Stock Purchase Plan, the Directors Plan, the SAR Plan and the Stock Rights Plan
are included herein as Part I, Part II, Part III, Part IV, Part V, Part VI and
Part VII, respectively, and are collectively referred to herein as the “Plans.”  The grant of an option, SAR or restricted
share or rights to purchase shares under one of the Plans shall not be
construed to prohibit the grant of an option, SAR or restricted share or rights
to purchase shares under any of the other Plans.

 

3.             Applicability of
General Provisions.  Unless any Plan
specifically indicates to the contrary, all Plans shall be subject to the General
Provisions of the MediCor Ltd. 1999 Stock Compensation Program set forth below.

 

4.             Administration of
the Plans.  The Plans shall be
administered, construed, governed, and amended in accordance with their
respective terms.

 

GENERAL PROVISIONS
OF STOCK COMPENSATION PROGRAM

 

Article 1.                Administration.  The Program shall be administered by the
Company’s Board of Directors (the “Board”). 
If an award is to be made to an “Executive Officer” as defined in the
Exchange Act (as hereinafter defined), it must be approved if the Company has a
class of equity securities registered under Section 12 or 15(d) of the
Exchange Act, by the Board or by a committee of the Board, that is composed
solely of two or more directors who are “Non-Employee Directors” within the meaning
of Rule 16b-3 promulgated pursuant to the Securities Exchange Act of 1934, as
amended (the “Exchange Act”). The members of the Board, such committee of
the Board or such other persons appointed to administer the Program, when
acting to administer the Program, are herein collectively referred to as the “Program
Administrators.”  To the
extent permitted under the Exchange Act, the Internal Revenue Code of 1986, as
amended (the “Code”) or any other applicable law, the

 

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Program Administrators,
shall have the authority to delegate any and all power and authority to
administer and operate the Program hereunder to such person or persons as the
Program Administrators deems appropriate which if formed may be referred to by
such title specified by the Board. 
Subject to the foregoing limitations, as applicable, the Board may from
time to time remove members from the committee, fill all vacancies on the
committee, however caused, and may select one of the members of the committee
as its Chairman.

 

The Program
Administrators shall hold meetings at such times and places as they may
determine and as necessary to approve all grants and other transactions under
the Program as required under Rule 16b-3(d) of the Exchange Act, shall keep
minutes of their meetings, and shall adopt, amend, and revoke such rules and
procedures as they may deem proper with respect to the Program.  Any action of the Program Administrators
shall be taken by majority vote or the unanimous written consent of the Program
Administrators.

 

Article 2.                Authority of
Program Administrators.  Subject to
the other provisions of this Program, and with a view to effecting its purpose,
the Program Administrators shall have sole authority, in their absolute discretion,
(a) to construe and interpret the Program; (b) to define the terms used herein;
(c) to determine the individuals to whom options and restricted shares and
rights to purchase shares shall be granted under the Program; (d) to determine
the time or times at which options and restricted shares or rights to purchase
shares shall be granted under the Program; (e) to determine the number of
shares subject to each option, restricted share and purchase right, the
duration of each option granted under the Program, and the price of any share
purchase; (f) to determine all of the other terms and conditions of options and
restricted shares and purchase rights granted under the Program; and (g) to
make all other determinations necessary or advisable for the administration of
the Program and to do everything necessary or appropriate to administer the
Program;  provided, however, that the
Board shall establish the price for all shares issued hereunder.  All decisions, determinations, and
interpretations made by the Program Administrators shall be binding and
conclusive on all participants in the Program (the “Plan Participants”) and on
their legal representatives, heirs and beneficiaries.

 

Article 3.                Maximum Number
of Shares Subject to the Program. 
The maximum aggregate number of shares of Common Stock subject to the
Plans shall be 1,242,680 shares.  The
shares of Common Stock to be issued upon exercise of an option, to the extent
exercised for shares of Common Stock, issued as restricted shares or issued
upon stock purchases may be authorized but unissued shares, shares issued and
reacquired by the Company or shares purchased by the Company on the open
market.  If any of the options granted
under the Program expire or terminate for any reason before they have been exercised
in full, the unpurchased shares subject to those expired or terminated options
shall cease to reduce the number of shares available for purposes of the
Program.  If the conditions associated
with the grant of restricted shares are not achieved within the period
specified for satisfaction of the applicable conditions, or if the restricted
share grant terminates for any reason before the date on which the conditions
must be satisfied, the shares of Common Stock associated with such restricted
shares shall cease to reduce the number of shares available for purposes of the
Program.

 

The proceeds received by
the Company from the sale of its Common Stock pursuant to the exercise of
options, transfer of restricted shares or issuance of stock purchased under the
Program, if in the form of cash, shall be added to the Company’s general funds
and used for general corporate purposes.

 

Article 4.                Eligibility and
Participation.  Officers, employees,
directors (whether employee directors or non-employee directors), and
independent contractors or agents of the Company or its subsidiaries who are
responsible for or contribute to the management, growth or profitability of the
business of the Company or its subsidiaries shall be eligible for selection by
the Program Administrators to participate in the Program.  However, Incentive Options may be granted
under the Incentive Plan only to a person who is an employee of the Company or
its subsidiaries.  An employee may be
granted Nonqualified Options under the Program; provided, however, that the
grant of Nonqualified Options and Incentive Options to an employee shall be the
grant of separate options and each Nonqualified Option and each Incentive
Option shall be specifically designated as such in

 

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accordance with
applicable provisions of the Treasury Regulations.

The term “subsidiary” as
used herein means any company, other than the Company, in an unbroken chain of
companies, beginning with the Company if, at the time of any grant hereunder,
each of the companies, other than the last company in the unbroken chain, owns
stock possessing more than 50% of the total combined voting power of all
classes of stock in one of the other companies in such chain.

 

Article 5.                Effective Date
and Term of Program.  The Program
became effective upon its adoption by the Board of Directors of the Company on
September 10, 1999 and subsequent approval of the Program by a majority of
the voting shares of the Company voting in person or by proxy at a meeting of
stockholders or by written consent and as amended by action of the Board of
Directors of the Company effective as of February 7, 2003.  The Program shall continue in effect for a
term of 10 years unless sooner terminated under Article 7 of these General
Provisions.

 

Article 6.                Adjustments.  If the outstanding shares of Common Stock
are increased, decreased, changed into, or exchanged for a different number or
kind of shares or securities through merger, consolidation, combination,
exchange of shares, other reorganization, recapitalization, reclassification,
stock dividend, stock split or reverse stock split, an appropriate and
proportionate adjustment shall be made in the maximum number and kind of shares
as to which options and restricted shares may be granted under this
Program.  A corresponding adjustment
changing the number and kind of shares allocated to unexercised options,
restricted shares, or portions thereof, which shall have been granted prior to
any such change, shall likewise be made. 
Any such adjustment in outstanding options shall be made without change
in the aggregate purchase price applicable to the unexercised portion of the
option, but with a corresponding adjustment in the price for each share or
other unit of any security covered by the option.

 

Article 7.                Termination and
Amendment of Program.  The Program
shall terminate 10 years from the date the Program is adopted by the Board of
Directors, or, if applicable, the date a particular Plan is approved by the
stockholders, whichever is earlier, or shall terminate at such earlier time as
the Board of Directors may so determine. 
No options or restricted shares shall be granted and no stock shall be
sold and purchased under the Program after that date.  Subject to the limitation contained in Article 8 of these
General Provisions, the Program Administrators may at any time amend or revise
the terms of the Program, including the form and substance of the option,
restricted share and stock purchase agreements to be used hereunder; provided,
however, that without approval by the stockholders of the Company
representing a majority of the voting power (as contained in Article 5 of
these General Provisions) no amendment or revision shall (a) increase the
maximum aggregate number of shares that may be sold or distributed pursuant to
options granted or stock sold and purchased under Part 1 or Part IV, except as
permitted under Article 6 of these General Provisions; (b) change the
minimum purchase price for shares under Section 4 of Part I or the
Purchase Price for shares under Part IV; (c) increase the maximum term
established under Parts I or IV for any option or restricted share; (d) permit
the granting of an option, or right to purchase shares under Parts I or IV to
anyone other than as provided in Article 4 of the General Provisions; (e)
change the term of Parts I or IV described in Article 5 of these General
Provisions; or (f) materially increase the benefits accruing to Plan
Participants under Parts I or IV of the Program.

 

Article 8.                Prior Rights
and Obligations.  No amendment,
suspension, or termination of the Program shall, without the consent of the
individual who has received an option or restricted share or who has purchased
a specified share or shares under Part IV, alter or impair any of that person’s
rights or obligations under any option or restricted share granted or shares
sold and purchased under the Program prior to that amendment, suspension, or
termination.

 

Article 9.                Privileges of
Stock Ownership.  Notwithstanding
the exercise of any option granted pursuant to the terms of this Program, the
achievement of any conditions specified in any restricted share granted
pursuant to the terms of this Program or the election to purchase any shares
pursuant to the terms of this Program,

 

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no individual shall have
any of the rights or privileges of a stockholder of the Company in respect of
any shares of stock issuable upon the exercise of his or her option, the
satisfaction of his or her restricted share conditions or the sale, purchase
and issuance of such purchased shares until certificates representing the
shares have been issued and delivered. 
No shares shall be required to be issued and delivered upon exercise of
any option, satisfaction of any conditions with respect to a restricted share
or a purchaser under Part IV unless and until all of the requirements of law
and of all regulatory agencies having jurisdiction over the issuance and
delivery of the securities shall have been fully complied with.

 

Article 10.              Reservation of
Shares of Common Stock.  The
Company, during the term of this Program, will at all times reserve and keep
available such number of shares of its Common Stock as shall be sufficient to
satisfy the requirements of the Program. 
In addition, the Company will from time to time, as is necessary to
accomplish the purposes of this Program, seek or obtain from any regulatory
agency having jurisdiction any requisite authority in order to issue and sell
shares of Common Stock hereunder.  The
inability of the Company to obtain from any regulatory agency having
jurisdiction the authority deemed by the Company’s counsel to be necessary to
the lawful issuance and sale of any shares of its stock hereunder shall relieve
the Company of any liability in respect of the nonissuance or sale of the stock
as to which the requisite authority shall not have been obtained.

 

Article 11.              Tax Withholding.  The exercise of any option or restricted
share granted or the sale and issuance of any shares to be purchased under this
Program are subject to the condition that if at any time the Company shall
determine, in its discretion, that the satisfaction of withholding tax or other
withholding liabilities under any state or federal law is necessary or
desirable as a condition of, or in connection with, such exercise or the
delivery or purchase of shares pursuant thereto, then in such event, the
exercise of the option or restricted share or the sale and issuance of any
shares to be purchased shall not be effective unless such withholding shall
have been effected or obtained in a manner acceptable to the Company.  At the Company’s sole and complete
discretion, the Company may, from time to time, accept shares of the Company’s
stock subject to one of the Plans as the source of payment for such
liabilities.

 

Article 12.              Compliance with
Law.  It is the express intent of
the Company that this Program complies in all respect with all applicable
provisions of state and federal law, including without limitation
Section 25102(o) of the California Corporations Code to the extent such
Section is applicable to the Company. 
It is the express intent of the Company that when the Company becomes
publicly-traded that this Program shall comply in all respects with applicable
provisions of the Rule 16b-3 or Rule 16a-1(c)(3) under the Exchange Act in
connection with any grant of awards to, or other transaction by, a Plan
Participant who is subject to Section 16 of the Exchange Act (except for
transactions exempted under alternative Exchange Act Rules).  Accordingly, if any provision of the Program
or any agreement relating to any award thereunder does not comply with Rule
16b-3 or Rule 16a-1(c)(3) as then applicable to any such transaction, such
provision will be construed or deemed amended to the extent necessary to
conform to the applicable requirements of Rule 16b-3 or Rule 16a-1(c)(3) so
that such Plan Participant shall avoid liability under Section 16(b).  Unless otherwise provided in any grant or
aware to any person who is or may thereafter be subject to Section 16 of
the Exchange Act the approval of shall include the approval of the disposition
of the Company of Company equity securities for the purposes of satisfying the
payment of the exercise or purchase price or tax withholding obligations
related to such grant or award within the meaning of Section 16b-3(e).

 

Article 13.              Performance-Based
Awards.

(a)           Each agreement for the
grant of Performance Shares shall specify the number of Performance Shares
subject to such agreement, the Performance Period and the Performance Objective
(each as defined below), and each agreement for the grant of any other award
that the Program Administrators determine to make subject to a Performance
Objective similarly shall specify the applicable number of shares of Common
Stock, the period for measuring performance and the Performance Objective.  As used herein, “Performance Objective”

 

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means a performance
objective specified in the agreement for a Performance Share, or for any other
award which the Program Administrators determine to make subject to a
Performance Objective, upon which the vesting or settlement of such award is
conditioned and “Performance Period” means the period of time specified in an
agreement over which Performance Shares, or another award which the Program
Administrators determine to make subject to a Performance Objective, are to be
earned.  Each agreement for a
performance-based grant shall specify in respect of a Performance Objective the
minimum level of performance below which no payment will be made, shall
describe the method for determining the amount of any payment to be made if
performance is at or above the minimum acceptable level, but falls short of
full achievement of the Performance Objective, and shall specify the maximum
percentage payout under the agreement. 
Such maximum percentage in no event shall exceed one hundred percent
(100%) in the case of performance-based restricted shares and two hundred percent
(200%) in the case of Performance Shares or performance-based Dividend
Equivalent Rights.

(b)           The Program
Administrators shall determine and specify, in their discretion, the
Performance Objective in the agreement for a Performance Share or for any other
performance-based award, which Performance Objective shall consist of:  (i) one or more business criteria, including
(except as limited under subparagraph (c) below for awards to Covered Employees
(as defined below)) financial, service level and individual performance
criteria; and (ii) a targeted level or levels of performance with respect to
such criteria.  Performance Objectives
may differ between Plan Participants and between types of awards from year to
year.

(c)           The Performance
Objective for Performance Shares and any other performance-based award granted
to a Covered Employee, if deemed appropriate by the Program Administrators,
shall be objective and shall otherwise meet the requirements of
Section 162(m)(4)(C) of the Code, and shall be based upon one or more of
the following performance-based business criteria, either on a business unit or
Company-specific basis or in comparison with peer group performance:  net sales; gross sales; return on net
assets; return on assets; return on equity; return on capital; return on
revenues; cash flow; book value; share price performance (including Options and
SARs tied solely to appreciation in the Fair Market Value of the shares);
earnings per share; stock price earnings ratio; earnings before interest,
taxes, depreciation and amortization expenses (“EBITDA”); earnings before
interest and taxes (“EBIT”); or EBITDA, EBIT or earnings before
taxes and unusual or nonrecurring items as measured either against the annual
budget or as a ratio to revenue. 
Achievement of any such Performance Objective shall be measured over a
period of years not to exceed ten (10) as specified by the Program
Administrators in the agreement for the performance-based award.  No business criterion other than those named
above in this Article 13(c) may be used in establishing the Performance
Objective for an award to a Covered Employee under this Article 13.  For each such award relating to a Covered
Employee, the Program Administrators shall establish the targeted level or
levels of performance for each such business criterion.  The Program Administrators may, in their
discretion, reduce the amount of a payout otherwise to be made in connection
with an award under this Article 13(c), but may not exercise discretion to
increase such amount, and the Program Administrators may consider other
performance criteria in exercising such discretion.  All determinations by the Program Administrators as to the
achievement of Performance Objectives under this Article 13(c) shall be
made in writing.  The Program
Administrators may not delegate any responsibility under this
Article 13(c).  As used herein, “Covered
Employee” shall mean, with respect to any grant of an award, an
executive of the Company or any subsidiary who is a member of the executive
compensation group under the Company’s compensation practices (not necessarily
an executive officer) whom the Program Administrators deem may be or become a
covered employee as defined in Section 162(m)(3) of the Code for any year
that such award may result in remuneration over $1 million which would not be
deductible under Section 162(m) of the Code but for the provisions of the
Program and any other “qualified performance-based compensation” plan (as
defined under Section 162(m) of the Code) of the Company; provided,
however, that the Program Administrators may determine that a Plan
Participant has ceased to be a Covered Employee prior to the settlement of any
award.

(d)           The Program
Administrators, in their sole discretion, may require that one or more award
agreements contain provisions which provide that, in the event
Section 162(m) of the Code, or any successor provision relating to
excessive employee remuneration, would operate to disallow a deduction by the
Company with respect to all or part of any award under the Program, a Plan
Participant’s receipt of the benefit relating to such award that would not be
deductible by the Company shall be deferred until the next succeeding year or
years

 

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in which the Plan
Participant’s remuneration does not exceed the limit set forth in such
provisions of the Code.

 

Article 14.              Death
Beneficiaries.  In the event of a
Plan Participant’s death, all of such person’s outstanding awards, including
his or her rights to receive any accrued but unpaid Stock Payments, will
transfer to the maximum extent permitted by law to such person’s beneficiary
(except to the extent a permitted transfer of a Nonqualified Option or SAR was
previously made pursuant hereto).  Each
Plan Participant may name, from time to time, any beneficiary or beneficiaries
(which may be named contingently or successively) as his or her beneficiary for
purposes of this Program.  Each
designation shall be on a form prescribed by the Program Administrators, will
be effective only when delivered to the Company, and when effective will revoke
all prior designations by the Plan Participant.  If a Plan Participant dies with no such beneficiary designation
in effect, such person’s beneficiary shall be his or her estate and such
person’s awards will be transferable by will or pursuant to laws of descent and
distribution applicable to such person.

 

Article 15.              Unfunded Program.  The Program shall be unfunded and the
Company shall not be required to segregate any assets that may at any time be
represented by awards under the Program. 
Neither the Company, its affiliates, the Program Administrators, nor the
Board shall be deemed to be a trustee of any amounts to be paid under the
Program nor shall anything contained in the Program or any action taken
pursuant to its provisions create or be construed to create a fiduciary
relationship between any such party and a Plan Participant or anyone claiming
on his or her behalf.  To the extent a
Plan Participant or any other person acquires a right to receive payment
pursuant to an award under the Program, such right shall be no greater than the
right of an unsecured general creditor of the Company.

 

Article 16.              Choice of Law and
Venue.  The Program and all related
documents shall be governed by, and construed in accordance with, the laws of
the State of Delaware.  Acceptance of an
award shall be deemed to constitute consent to the jurisdiction and venue of
the courts located in the State of Delaware for all purposes in connection with
any suit, action or other proceeding relating to such award, including the
enforcement of any rights under the Program or any agreement or other document,
and shall be deemed to constitute consent to any process or notice of motion in
connection with such proceeding being served by certified or registered mail or
personal service within or without the State of Delaware, provided a reasonable
time for appearance is allowed.

 

Article 17.              Arbitration.  Any disputes involving the Program will be
resolved by arbitration in the State of Delaware before one (1) arbitrator in
accordance with the Commercial Arbitration Rules of the American Arbitration
Association.

 

Article 18.              Program
Administrators’ Right.  Except as
may be provided in an award agreement, the Program Administrators may, in their
discretion, waive any restrictions or conditions applicable to, or accelerate
the vesting of, any award (other than the right to purchase shares pursuant to
the Stock Purchase Plan).

 

Article 19.              Termination of
Benefits Under Certain Conditions. 
The Program Administrators, in their sole discretion, may cancel any
unexpired, unpaid or deferred award (other than a right to purchase shares
pursuant to the Stock Purchase Plan) at any time if the Plan Participant is not
in compliance with all applicable provisions of the Program or any award
agreement or if the Plan Participant, whether or not he or she is currently
employed by the Company or one of its subsidiaries, acts in a manner contrary
to the best interests of the Company and its subsidiaries.

 

Article 20.              Conflicts in
Program.  In case of any conflict in
the terms of the Program, or between the Program and an award agreement, the
provisions in the Program which specifically grant such award shall control,
and the provisions in the Program shall control over the provisions in any
award agreement.

 

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Article 21.              Optional Deferral.  The right to receive any award under the
Program (other than the right to purchase shares pursuant to the Stock Purchase
Plan) may, at the request of the Plan Participant, be deferred to such period
and upon such terms and conditions as the Program Administrators shall, in
their discretion, determine, which may include crediting of interest on
deferrals of cash and crediting of dividends on deferrals denominated in shares
of Common Stock.

 

Article 22.              Information to
Plan Participants.  To the extent
required by applicable law, the Company shall provide Plan Participants with
the Company’s financial statements at least annually.

 

Article 23.              Company’s Right
of First Refusal. Any attempt by any Plan Participant to sell, transfer or
otherwise dispose of any securities issued to such Plan Participant hereunder
or upon exercise of any other security or other right issued hereunder, that is
transferable in accordance with the terms of this Program and applicable law,
must also comply with the following provisions:

(a)           The Plan Participant
must have received a bona fide offer to purchase the securities (the “Offer”)
and the Plan Participant must then give written notice to the Company outlining
the terms of the Offer (including the identity of the maker of the Offer (the “Offeror”)).  The Company shall then have the right, for a
period of sixty (60) days, to repurchase all, but not less than all, of the
securities offered by the Plan Participant upon the terms contained in the
Offer.  If the Offer includes the
payment of non-cash consideration for the securities, the Company shall pay an
amount equal to the fair market value of such non-cash consideration;

(b)           If the Company does not
exercise its rights hereunder, the Plan Participant may, within sixty (60) days
thereafter, sell the offered securities to the Offeror upon terms not more
favorable to the Offeror than those contained in the Offer.  Any sale of securities by the Plan
Participant after the expiration of the sixty (60) day period referred to in
the preceding sentence shall be deemed a new transaction subject to the Company’s
right of first refusal here; and

(c)           The Company’s right of
first refusal shall terminate when the Company’s securities become publicly
traded.

 

Article 24.              Lock-Up.  To the extent requested by any managing
underwriter to the Company, the Plan Participants shall enter into such market
lock-up, escrow or other agreements as may be requested by such underwriter in
connection with any public offering of the Company’s securities.

 

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PART I

 

MEDICOR LTD.

INCENTIVE STOCK OPTION PLAN

 

Section 1.               Purpose.  The purpose of this MediCor Ltd. Incentive
Stock Option Plan (the “Incentive Plan”) is to promote the growth
and general prosperity of the Company by permitting the Company to grant
options to purchase shares of its Common Stock.  The Incentive Plan is designed to help attract and retain
superior personnel for positions of substantial responsibility with the Company
and its subsidiaries, and to provide individuals with an additional incentive
to contribute to the success of the Company. 
The Company intends that options granted pursuant to the provisions of
the Incentive Plan will qualify as “incentive stock options” within the
meaning of Section 422 of the Code. 
This Incentive Plan is Part I of the Program.  Unless any provision herein indicates to the contrary, this
Incentive Plan shall be subject to the General Provisions of the Program.

 

Section 2.               Maximum Number
of Shares; Option Terms and Conditions. 
The maximum aggregate number of shares of Common Stock subject to the
Incentive Plan should be 1,242,680.  The
terms and conditions of options granted under the Incentive Plan may differ
from one another as the Program Administrators shall, in its discretion,
determine as long as all options granted under the Incentive Plan satisfy the
requirements of the Incentive Plan.

 

Section 3.               Duration of
Options.  Each option and all rights
thereunder granted pursuant to the terms of the Incentive Plan shall expire on
the date determined by the Program Administrators, but in no event shall any
option granted under the Incentive Plan expire later than ten (10) years from
the date on which the option is granted. 
However, notwithstanding the above portion of this Section 3, if at
the time the option is granted the grantee (the “Optionee”) owns or would be
considered to own by reason of Code Section 424(d) more than 10% of the
total combined voting power of all classes of stock of the Company or its
subsidiaries, such option shall expire not more than 5 years from the date the
option is granted.  In addition, each option
shall be subject to early termination as provided in the Incentive Plan.

 

Section 4.               Purchase Price.  The purchase price for shares acquired
pursuant to the exercise, in whole or in part, of any option shall not be less
than the fair market value of the shares at the time of the grant of the
option.  Fair market value (the “Fair Market
Value”) shall be determined by the Program Administrators on the
basis of such factors as they deem appropriate; provided, however, that Fair
Market Value on any day shall be deemed to be, if the Common Stock is traded on
a national securities exchange, the closing price (or, if no reported sale
takes place on such day, the mean of the reported bid and asked prices) of the
Common Stock on such day on the principal such exchange, or, if the stock is
included on the composite tape, the composite tape.  In each case, the Program Administrators’ determination of Fair
Market Value shall be conclusive.

 

Notwithstanding
the above portion of this Section 4, if at the time an option is granted
the Optionee owns or would be considered to own by reason of Code
Section 424(d) more than 10% of the total combined voting power of all
classes of stock of the Company or its subsidiaries, the purchase price of the
shares covered by such option shall not be less than 110% of the Fair Market
Value of a share of Common Stock on the date the option is granted.

 

Section 5.               Maximum Amount
of Options Exercisable in Any Calendar Year.  Notwithstanding any other provision of this Incentive Plan, the aggregate
Fair Market Value (determined at the time any Incentive Stock Option is
granted) of the Common Stock with respect to which Incentive Stock Options
become exercisable for the first time by any employee during any calendar year
under all stock option plans of the Company and its subsidiaries shall not
exceed $100,000.

 

8

 

Section 6.               Exercise of
Options.  Each option shall be
exercisable in one or more installments during its term as determined by the Program
Administrators, and the right to exercise may be cumulative as determined by
the Program Administrators.  Each option
shall be exercisable at a rate of at least twenty percent (20%) per year over
five (5) years from the date the option is granted, subject to such reasonable
conditions as determined by the Program Administrators.  No option may be exercised for a fraction of
a share of Common Stock.  The purchase
price of any shares purchased shall be paid in full in cash or by certified or
cashier’s check payable to the order of the Company or by shares of Common
Stock, if permitted by the Program Administrators, or by a combination of cash,
check, or shares of Common Stock, at the time of exercise of the option.  If any portion of the purchase price is paid
in shares of Common Stock, those shares shall be tendered at their then Fair
Market Value as determined by the Program Administrators in accordance with
Section 4 of this Incentive Plan. 
Payment in shares of Common Stock includes the automatic application of
shares of Common Stock received upon exercise of an option to satisfy the
exercise price for additional options.

 

Section 7.               Reorganization.  In the event of the dissolution or
liquidation of the Company, any option granted under the Incentive Plan shall
terminate as of a date to be fixed by the Program Administrators; provided that
not less than 30 days’ written notice of the date so fixed shall be given to
each Optionee and each such Optionee shall have the right during such period
(unless such option shall have previously expired) to exercise any option,
including any option that would not otherwise be exercisable by reason of an
insufficient lapse of time.

 

In the event of a
Reorganization (as defined below) in which the Company is not the surviving or
acquiring company, or in which the Company is or becomes a subsidiary of
another company after the effective date of the Reorganization, then:

 

(a)  if there is no plan or agreement respecting
the Reorganization (the “Reorganization Agreement”) or if the
Reorganization Agreement does not specifically provide for the change,
conversion or exchange of the outstanding options for options of another
corporation, then exercise and termination provisions equivalent to those
described in this Section 7 shall apply; or

 

(b)  if there is a Reorganization Agreement and
if the Reorganization Agreement specifically provides for the change,
conversion, or exchange of the outstanding options for options of another
corporation, then the Program Administrators shall adjust the outstanding
unexercised options (and shall adjust the options remaining under the Incentive
Plan which have not yet been granted if the Reorganization Agreement makes
specific provision for such an adjustment) in a manner consistent with the
applicable provisions of the Reorganization Agreement.

 

The term “Reorganization”
as used in this Section 7 shall mean any statutory merger, statutory
consolidation, sale of all or substantially all of the assets of the Company or
a sale of the Common Stock pursuant to which the Company is or becomes a
subsidiary of another company after the effective date of the Reorganization.

 

Adjustments and
determinations under this Section 7 shall be made by the Program
Administrators, whose decisions as to such adjustments or determinations shall
be final, binding, and conclusive.

 

Section 8.               Written Notice
Required.  Any option granted
pursuant to the terms of the Incentive Plan shall be exercised when written
notice of that exercise has been given to the Company at its principal office
by the person entitled to exercise the option and full payment for the shares
with respect to which the option is exercised, together with payment of
applicable income taxes, has been received by the Company.

 

9

 

Section 9.               Compliance with
Securities Laws.  Shares shall not
be issued with respect to any option granted under the Incentive Plan, unless
the exercise of that option and the issuance and delivery of the shares
pursuant to that exercise shall comply with all applicable provisions of
foreign, state and federal law including, without limitation, the Securities
Act of 1933, as amended, and the Exchange Act, and the rules and regulations
promulgated thereunder, and the requirements of any stock exchange upon which
the shares may then be listed, and shall be further subject to the approval of
counsel for the Company with respect to such compliance.  The Program Administrators may also require an
Optionee to furnish evidence satisfactory to the Company, including a written
and signed representation letter and consent to be bound by any transfer
restriction imposed by law, legend, condition, or otherwise, that the shares
are being purchased only for investment and without any present intention to
sell or distribute the shares in violation of any state or federal law, rule,
or regulation.  Further, each Optionee
shall consent to the imposition of a legend on the shares of Common Stock
subject to his or her Option and the imposition of stop-transfer instructions
restricting their transferability as required by law or by this Section 9.

 

Section 10.             Employment of
Optionee.  Each Optionee, if
requested by the Program Administrators, must agree in writing as a condition
of receiving his or her option, that he or she will remain in the employment of
the Company or its subsidiary corporations following the date of the granting
of that option for a period specified by the Program Administrators.  Nothing in the Incentive Plan or in any
option granted hereunder shall confer upon any Optionee any right to continued
employment by the Company or its subsidiary corporations or limit in any way
the right of the Company or its subsidiary corporations at any time to
terminate or alter the terms of that employment.

 

Section 11.             Option Rights Upon
Termination of Employment.  If an
Optionee ceases to be employed by the Company or any subsidiary corporation for
any reason other than death or disability, his or her option shall terminate
within thirty (30) days after the date of termination of employment; provided,
however, that in the event employment is terminated for cause as
defined buy applicable law, his or her option shall terminate immediately, provided,
further, however, that the Program Administrators may, in their sole
and absolute discretion, allow the option to be exercised (to the extent
exercisable on the date of termination of employment) at any time within sixty
(60) days after the date of termination of employment, unless either the option
or the Incentive Plan otherwise provides for earlier termination.

 

Section 12.             Option Rights Upon
Disability.  If an Optionee becomes
disabled within the meaning of Code Section 422(e)(3) while employed by
the Company or any subsidiary corporation, the Program Administrators, in their
discretion, may allow the option to be exercised, to the extent exercisable on
the date of termination of employment, at any time within one year after the
date of termination of employment due to disability, unless either the option
or the Incentive Plan otherwise provides for earlier termination.

 

Section 13.             Option Rights Upon
Death of Optionee.  Except as
otherwise limited by the Program Administrators at the time of the grant of an
option, if an Optionee dies while employed by the Company or any subsidiary
corporation, his or her Option shall expire one year after the date of death
unless by its terms it expires sooner. 
During this one year or shorter period, the option may be exercised, to
the extent that it remains unexercised on the date of death, by the person or
persons to whom the Optionee’s rights under the option shall pass by will or by
the laws of descent and distribution, but only to the extent that the Optionee
is entitled to exercise the option at the date of death.

 

Section 14.             Options Not
Transferable.  Options granted
pursuant to the terms of the Incentive Plan may not be sold, pledged, assigned,
or transferred in any manner otherwise than by will or the laws of descent or
distribution and may be exercised during the lifetime of an Optionee only by
that Optionee.  No such options shall be
pledged or hypothecated in any way nor shall they be subject to execution,
attachment, or similar process.

 

10

 

Section 15.             Adjustments to
Number and Purchase Price of Optioned Shares.  All options granted pursuant to the terms of this Incentive Plan
shall be adjusted in the manner prescribed by Article 6 of the General
Provisions of this Program.

 

MEDICOR LTD.

INCENTIVE
STOCK OPTION PLAN

GRANT OF OPTION

 

THIS GRANT, dated
as of the date of grant stated on the signature page hereof (the “Date of
Grant”), is delivered by, MediCor Ltd., a State of Delaware
corporation (the “Company”) to individual identified on the signature page
hereof (the “Grantee”), who is an employee of the Company or one of its
subsidiaries (the Grantee’s employer is sometimes referred to herein as the “Employer”).

 

WHEREAS, the Board
of Directors of the Company (the “Board”) on September 10, 1999,
adopted, with subsequent stockholder approval, the MediCor Ltd. Incentive Stock
Option Plan and adopted the Amended and Restated MediCor Ltd. Incentive Stock
Option Plan effective as of February 7, 2003 (the “Plan”);

 

WHEREAS, the Plan
provides for the granting of incentive stock options by the Board or Program
Administrators to employees of the Company or any subsidiary of the Company to
purchase, or to exercise certain rights with respect to, shares of the Common
Stock of the Company, no par value (the “Stock”), in accordance with the terms and
provisions thereof; and

 

WHEREAS, the
Program Administrators consider the Grantee to be a person who is eligible for
a grant of incentive stock options under the Plan, and has determined that it
would be in the best interest of the Company to grant the incentive stock
options documented herein.

 

NOW, THEREFORE,
the parties hereto, intending to be legally bound hereby, agree as follows:

 

1.             Grant of Option.  Subject to the terms and conditions
hereinafter set forth, the Company, with the approval and at the direction of
the Program Administrators, hereby grants to the Grantee, as of the Date of
Grant, an option to purchase up to the number of shares of Stock identified on
the signature page hereof (the “Number of Option Shares”) at a price per
share identified on the signature page hereof (the “Strike Price”), the fair
market value (or, with respect to 10% stockholders, 110% of fair market
value).  Such option is hereinafter
referred to as the “Option” and the shares of stock purchasable
upon exercise of the Option are hereinafter sometimes referred to as the “Option
Shares.”  The Option is
intended by the parties hereto to be, and shall be treated as, an incentive
stock option (as such term is defined under Section 422 of the United States
Internal Revenue Code of 1986).

 

2.             Installment
Exercise.  Subject to such further
limitations as are provided herein, the Option shall become exercisable in the
number of installments identified on the signature page hereof, the Grantee
having the right hereunder to purchase from the Company the following number of
Option Shares upon exercise of the Option, on and after the following dates, in
cumulative fashion as determined by the Program Administrators and listed on
the signature page hereof.

 

3.             Termination of
Option.

(a)           The Option and all
rights hereunder with respect thereto, to the extent such rights shall not have
been exercised, shall terminate and become null and void after the expiration
of the number of years from the Date of Grant identified on the signature page
hereof (the “Option Term” [no more than 10 years from Date of Grant or,
in the case of a 10% owner, no more than 5 years from Date of Grant]).

(b)           Upon the occurrence of
the Grantee’s ceasing for any reason to be employed by the Employer (such
occurrence being a “termination of the Grantee’s employment”), the Option, to
the extent not

 

11

 

previously
exercised, shall terminate and become null and void within thirty (30) days
after the date of such termination of the Grantee’s employment, except (1) in
the event employment is terminated for cause as defined buy applicable law, in
which case Grantee’s shall terminate and become null and void immediately or
(2) in a case where the Program Administrators may otherwise determine in its
sole and absolute discretion for up to sixty (60) days following the
termination of employment.  As
determined by the Program Administrators, upon a termination of the Grantee’s
employment by reason of disability or death, the Option may be exercised, but
only to the extent that the Option was outstanding and exercisable on such date
of disability or death, up to a one-year period following the date of such
termination of the Grantee’s employment.

(c)           In the event of the
death of the Grantee, the Option may be exercised by the Grantee’s legal
representative, but only to the extent that the option would otherwise have
been exercisable by the Grantee.

(d)           A transfer of the
Grantee’s employment between the Company and any subsidiary of the Company, or
between any subsidiaries of the Company, shall not be deemed to be a
termination of the Grantee’s employment.

 

4.             Exercise of
Options.

(a)           The Grantee may
exercise the option with respect to all or any part of the number of option
Shares then exercisable hereunder by giving the Secretary of the Company
written notice of intent to exercise. 
The notice of exercise shall specify the number of Option Shares as to
which the Option is to be exercised and the date of exercise thereof.

(b)           Full payment (in U.S.
dollars) by the Grantee of the option price for the Option Shares purchased
shall be made on or before the exercise date specified in the notice of
exercise in cash, or, with the prior written consent of the Program Administrators,
in whole or in part through the surrender of shares of Stock at their fair
market value on the exercise date.  The
Grantee shall also pay any required income tax withholding taxes which may be
payable in U.S. dollars or Option shares if acceptable to the Company.

(c)           On the exercise date
specified in the Grantee’s notice or as soon thereafter as is practicable, the
Company shall cause to be delivered to the Grantee, a certificate or
certificates for the option Shares then being purchased (out of theretofore
unissued stock or reacquired Stock, as the Company may elect) upon full payment
for such option Shares.  However, if (i)
the Grantee is subject to Section 16 of the Securities Exchange Act of
1934 and (ii) the Grantee exercises the Option before six months have passed
from the Date of Grant, the Company shall be permitted to hold in its custody
any stock certificate arising from such exercise until six months has passed
from the Date of Grant.  The obligation
of the Company to deliver Stock shall, however, be subject to the condition
that if at any time the Program Administrators shall determine in its
discretion that the listing, registration or qualification of the Option or the
Option Shares upon any securities exchange or under any state or federal law,
or the consent or approval of any governmental regulatory body, is necessary or
desirable as a condition of, or in connection with, the Option or the issuance
or purchase of Stock thereunder, the Option may not be exercised in whole or in
part unless such listing, registration, qualification, consent or approval
shall have been effected or obtained free of any conditions not acceptable to
the Program Administrators.

(d)           If the Grantee fails to
pay for any of the Option Shares specified in such notice or fails to accept
delivery thereof, the Grantee’s right to purchase such Option Shares may be
terminated by the Company.  The date
specified in the Grantee’s notice as the date of exercise shall be deemed the
date of exercise of the Option, provided that payment in full for the Option
Shares to be purchased upon such exercise shall have been received by such
date.

 

5.             Adjustment of and
Changes in Stock of the Company.  In
the event of a reorganization, recapitalization, change of shares, stock split,
spin-off, stock dividend, reclassification, subdivision or combination of
shares, merger, consolidation, rights offering, or any other change in the
corporate structure or shares of capital stock of the Company, the Program
Administrators shall make such adjustment as may be required under the
applicable reorganization agreement in the number and kind of shares of Stock
subject to the Option or in the option price; 
provided,
however, that no such adjustment shall give the Grantee any
additional benefits under the Option. 
If there is no provision for the treatment of the Option under an
applicable

 

12

 

reorganization
agreement, the Option may terminate on a date determined by the Program
Administrators following at least 30 days written notice to the Grantee.

 

6.             Fair Market Value.  As used herein, the “fair market value” of a
share of Stock shall be determined by the Board.  However, if the Stock is publicly-traded, fair market value of a
share of Stock shall be based upon the closing or other appropriate trading
price per share of Stock on a national securities exchange.

 

7.             No Rights of
Stockholders.  Neither the Grantee
nor any personal representative shall be, or shall have any of the rights and
privileges of, a stockholder of the Company with respect to any shares of Stock
purchasable or issuable upon the exercise of the Option, in whole or in part,
prior to the date of exercise of the Option.

 

8.             Non-Transferability
of Option.  During the Grantee’s
lifetime, the Option hereunder shall be exercisable only by the Grantee or any
guardian or legal representative of the Grantee, and the option shall not be
transferable except, in case of the death of the Grantee, by will or the laws
of descent and distribution, nor shall the Option be subject to attachment,
execution or other similar process.  In
the event of (a) any attempt by the Grantee to alienate, assign, pledge,
hypothecate or otherwise dispose of the option, except as provided for herein,
or (b) the levy of any attachment, execution or similar process upon the rights
or interest hereby conferred, the Company may terminate the Option by notice to
the Grantee and it shall thereupon become null and void.

 

9.             Restriction on
Exercise.  The Option may not be exercised
if the issuance of the Option Shares upon such exercise would constitute a
violation of any applicable federal or State securities or other law or valid
regulation.  As a condition to the
exercise of the Option, the Company may require the Grantee exercising the
Option to make any representation or warranty to the Company as may be required
by any applicable law or regulation and, specifically, may require the Grantee
to provide evidence satisfactory to the Company that the Option Shares are being
acquired only for investment purposes and without any present intention to sell
or distribute the shares in violation of any federal or State securities or
other law or valid regulation.

 

10.           Employment Not
Affected.  The granting of the
option or its exercise shall not be construed as granting to the Grantee any
right with respect to continuance of employment of the Employer.  Except as may otherwise be limited by a
written agreement between the Employer and the Grantee, the right of the
Employer to terminate at will the Grantee’s employment with it at any time
(whether by dismissal, discharge, retirement or otherwise) is specifically
reserved by the Company, as the Employer or on behalf of the Employer
(whichever the case may be), and acknowledged by the Grantee.

 

11.           Amendment of Option.  The Option may be amended by the Program
Administrators at any time (i) if the Program Administrators determine, in
their sole discretion, that amendment is necessary or advisable in the light of
any addition to or change in the Internal Revenue Code of 1986 or in the
regulations issued thereunder, or any federal or state securities law or other
law or regulation, which change occurs after the Date of Grant and by its terms
applies to the Option; or (ii) other than in the circumstances described in
clause (i), with the consent of the Grantee.

 

12.           Notice.  All notices, requests, demands, and other
communications hereunder shall be in writing and shall be deemed to have been
duly given if delivered personally or by certified mail, return receipt
requested, to the address set forth on the signature page hereof.

 

13.           Incorporation of
Plan by Reference.  The Option is
granted pursuant to the terms of the Plan, the terms of which are incorporated
herein by reference, and the option shall in all respects be interpreted in
accordance with the Plan.  The Program
Administrators shall interpret and construe the Plan and this instrument, and
its interpretations and determinations shall be conclusive and binding on the
parties hereto and any other

 

13

 

person claiming an
interest hereunder, with respect to any issue arising hereunder or thereunder.

 

14

 

14.           Governing Law.  The validity, construction, interpretation
and effect of this instrument shall exclusively be governed by and determined
in accordance with the law of the State of Delaware.

 

IN WITNESS
WHEREOF, the Company has caused its duly authorized officers to execute this
Grant of Option, and to apply the corporate seal hereto, and the Grantee has
placed his or her signature hereon, effective as of the Date of Grant.

 

	
  MEDICOR LTD.

  
	
   

  
	
   

  
	
  By: 

  	
   

  	
   

  	
  Address for Notices:

  
	
  Name:

  	
   

  	
  Management Offices

  
	
  Title:

  	
   

  	
  4560 S. Decatur Blvd.

  
	
   

  	
  Suite 300

  
	
   

  	
  Las Vegas, NV. 89103

  
	
   

  
	
  ACCEPTED AND AGREED TO:

  
	
   

  
	
  “Grantee”

  
	
   

  	
  Address for Notices:

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  
	
  Printed Name:

  	
   

  	
   

  	
   

  
	
   

  
	
  Phone: 

  	
   

  	
   

  	
  Fax:

  	
   

  
	
   

  
	
  E-Mail:

  	
   

  	
   

  	
  Soc. Sec. #:

  	
   

  
	
   

  
	
  “Date of Grant”:                                              ,
                 

  	
   

  	
  “Option Term”:                         
  years

  
	
   

  
	
  “Number of Option Shares”:
                                                                                   
  (                                       )

  
	
   

  
	
  “Strike Price”:
                                        
  per share

  
	
   

  
	
  Installment Exercise - Vesting of Option Shares:

  
	
   

  
	
  Number of Installments:

  
	
   

  
	
  Vesting:  

  
												

 

15

 

PART II

 

MEDICOR
LTD.

NON-QUALIFIED STOCK OPTION PLAN

 

Section 1.               Purpose.  The purpose of this MediCor Ltd. Non-Qualified
Stock Option Plan (the “Nonqualified Plan”) is to permit the
Company to grant options to purchase shares of its Common Stock.  The Nonqualified Plan is designed to help
attract and retain superior personnel for positions of substantial responsibility
with the Company and its subsidiaries, and to provide individuals with an
additional incentive to contribute to the success of the Company.  Any option granted pursuant to the
Nonqualified Plan shall be clearly and specifically designated as not being an
incentive stock option, as defined in Section 422 of the Code.  This Nonqualified Plan is Part II of the
Program.  Unless any provision herein
indicates to the contrary, the Nonqualified Plan shall be subject to the
General Provisions of the Program.

 

Section 2.               Option Terms and
Conditions.  The terms and
conditions of options granted under the Nonqualified Plan may differ from one
another as the Program Administrators shall in their discretion determine as
long as all options granted under the Nonqualified Plan satisfy the
requirements of the Nonqualified Plan.

 

Section 3.               Duration of
Options.  Each option and all rights
thereunder granted pursuant to the terms of the Nonqualified Plan shall expire
on the date determined by the Program Administrators, but in no event shall any
option granted under the Nonqualified Plan expire later than ten (10) years
from the date on which the option is granted. 
In addition, each option shall be subject to early termination as provided
in the Nonqualified Plan.

 

Section 4.               Purchase Price.  The purchase price for shares acquired
pursuant to the exercise, in whole or in part, of any option shall not be less
than the fair market value of the shares at the time of the grant of the
option.  Fair market value (the “Fair Market
Value”) shall be determined by the Program Administrators on the
basis of such factors as they deem appropriate; provided, however, that Fair
Market Value on any day shall be deemed to be, if the Common Stock is traded on
a national securities exchange, the closing price (or, if no reported sale
takes place on such day, the mean of the reported bid and asked prices) of the
Common Stock on such day on the principal such exchange, or, if the stock is
included on the composite tape, the composite tape.  In each case, the Program Administrators’ determination of Fair
Market Value shall be conclusive.

 

Notwithstanding
the above portion of this Section 4, if at the time an option is granted
the Optionee owns or would be considered to own by reason of Code Section 424(d)
more than 10% of the total combined voting power of all classes of stock of the
Company or its subsidiaries, the purchase price of the shares covered by such
option shall not be less than 110% of the Fair Market Value of a share of
Common Stock on the date the option is granted.

 

Section 5.               Exercise of
Options.  Each option shall be
exercisable in one or more installments during its term and the right to
exercise may be cumulative as determined by the Program Administrators.  Each option shall be exercisable a rate of
at least twenty percent (20%) per year over five (5) years from the date the
option is granted, subject to such reasonable conditions as determined by the
Program Administrators.  No option may
be exercised for a fraction of a share of Common Stock.  The purchase price of any shares purchased
shall be paid in full in cash or by certified or cashier’s check payable to the
order of the Company or by shares of Common Stock, if permitted by the Program
Administrators, or by a combination of cash, check, or shares of Common Stock,
at the time of exercise of the option. 
If any portion of the purchase price is paid in shares of Common Stock,
those shares shall be tendered at their then Fair Market Value as determined by
the Program Administrators in accordance with Section 4 of the
Nonqualified Plan.  Payment in shares of
Common Stock includes the automatic application of shares of Common Stock
received upon exercise of an option to satisfy the exercise price for

 

16

 

additional options.

 

Section 6.               Reorganization.  In the event of the dissolution or
liquidation of the Company, any option granted under the Nonqualified Plan
shall terminate as of a date to be fixed by the Program Administrators; provided
that not less than 30 days’ written notice of the date so fixed shall be given
to each Optionee and each such Optionee shall have the right during such period
(unless such option shall have previously expired) to exercise any option,
including any option that would not otherwise be exercisable by reason of an
insufficient lapse of time.

 

In the event of a
Reorganization (as defined below) in which the Company is not the surviving or
acquiring company, or in which the Company is or becomes a subsidiary of
another company after the effective date of the Reorganization, then:

(a)           if there is no plan or
agreement respecting the Reorganization (“Reorganization Agreement”) or if the
Reorganization Agreement does not specifically provide for the change, conversion
or exchange of the outstanding options for options of another corporation, then
exercise and termination provisions equivalent to those described in this
Section 6 shall apply; or

(b)           if there is a
Reorganization Agreement and if the Reorganization Agreement specifically
provides for the change, conversion, or exchange of the outstanding options for
options of another corporation, then the Program Administrators shall adjust
the outstanding unexercised options (and shall adjust the options remaining
under the Nonqualified Plan which have not yet been granted if the
Reorganization Agreement makes specific provision for such an adjustment) in a
manner consistent with the applicable provisions of the Reorganization
Agreement.

The term “Reorganization”
as used in this Section 6 shall mean any statutory merger, statutory
consolidation, sale of all or substantially all of the assets of the Company or
a sale of the Common Stock pursuant to which the Company is or becomes a
subsidiary of another company after the effective date of the Reorganization.

Adjustments and
determinations under this Section 6 shall be made by the Program
Administrators, whose decisions as to such adjustments or determinations shall
be final, binding, and conclusive.

 

Section 7.               Written Notice
Required.  Any option granted
pursuant to the terms of this Nonqualified Plan shall be exercised when written
notice of that exercise has been given to the Company at its principal office
by the person entitled to exercise the option and full payment for the shares
with respect to which the option is exercised has been received by the Company.

 

Section 8.               Compliance with
Securities Laws.  Shares shall not
be issued with respect to any option granted under the Nonqualified Plan,
unless the exercise of that option and the issuance and delivery of the shares
pursuant thereto shall comply with all applicable provisions of foreign, state
and federal law, including, without limitation, the Securities Act of 1933, as
amended, and the Exchange Act, and the rules and regulations promulgated
thereunder, and the requirements of any stock exchange upon which the shares
may then be listed, and shall be further subject to the approval of counsel for
the Company with respect to such compliance. 
The Program Administrators may also require an Optionee to furnish
evidence satisfactory to the Company, including a written and signed
representation letter and consent to be bound by any transfer restrictions
imposed by law, legend, condition, or otherwise, that the shares are being
purchased only for investment purposes and without any present intention to
sell or distribute the shares in violation of any state or federal law, rule,
or regulation.  Further, each Optionee
shall consent to the imposition of a legend on the shares of Common Stock
subject to his or her option and the imposition of stop-transfer instructions
restricting their transferability as required by law or by this Section 8.

 

17

 

Section 9.               Continued Employment
or Service.  Each Optionee, if
requested by the Program Administrators, must agree in writing as a condition
of receiving his or her Option, to remain in the employment of, or service to,
the Company or any of its subsidiaries following the date of the granting of
that option for a period specified by the Program Administrators.  Nothing in this Nonqualified Plan or in any
option granted hereunder shall confer upon any Optionee any right to continued
employment by, or service to, the Company or any of its subsidiaries, or limit
in any way the right of the Company or any subsidiary at any time to terminate
or alter the terms of that employment or service arrangement.

 

Section 10.             Option Rights Upon
Termination of Employment or Service. If an Optionee ceases to be employed
by the Company or any subsidiary corporation for any reason other than death or
disability, his or her option shall terminate within thirty (30) days after the
date of termination of employment; provided, however, that in the event employment
is terminated for cause as defined buy applicable law, his or her option shall
terminate immediately, provided, further, however, that the
Program Administrators may, in their sole and absolute discretion, allow the
option to be exercised (to the extent exercisable on the date of termination of
employment) at any time within sixty (60) days after the date of termination of
employment, unless either the option or the Nonqualified Plan otherwise
provides for earlier termination.

 

Section 11.             Option Rights Upon
Disability.  If an Optionee becomes
disabled within the meaning of Code Section 422 (e) (3) while employed by
the Company or any subsidiary corporation, the Program Administrators, in their
discretion, may allow the option to be exercised, to the extent exercisable on
the date of termination of employment, at any time within one year after the
date of termination of employment due to disability, unless either the option
or the Nonqualified Plan otherwise provides for earlier termination.

 

Section 12.             Option Rights Upon
Death of Optionee.  Except as
otherwise limited by the Program Administrators at the time of the grant of an
option, if an Optionee dies while employed by, or providing services to, the
Company or any of its subsidiaries, his or her option shall expire one year
after the date of death unless by its terms it expires sooner.  During this one year or shorter period, the
option may be exercised, to the extent that it remains unexercised on the date
of death, by the person or persons to whom the Optionee’s rights under the
option shall pass by will or by the laws of descent and distribution, but only
to the extent that the Optionee is entitled to exercise the option at the date
of death.

 

Section 13.             Options Not
Transferable.  Options granted
pursuant to the terms of this Nonqualified Plan may not be sold, pledged,
assigned, or transferred in any manner otherwise than by will or the laws of
descent or distribution and may be exercised during the lifetime of an Optionee
only by that Optionee.  No such options
shall be pledged or hypothecated in any way nor shall they be subject to
execution, attachment, or similar process.

 

Section 14.             Adjustments to
Number and Purchase Price of Optioned Shares.  All options granted pursuant to the terms of this Nonqualified
Plan shall be adjusted in a manner prescribed by Article 6 of the General
Provisions of the Program.

 

18

 

MEDICOR
LTD.

NON-QUALIFIED
STOCK OPTION PLAN

 

GRANT OF OPTION

 

THIS GRANT, dated
as of the date of grant indicated on the signature page hereof (the “Date of
Grant”), is delivered by MediCor Ltd., a Delaware corporation (the “Company”),
to the individual or entity indicated on the signature page hereof  (the “Grantee”), who is a employee or non-employee
of the Company or one of its subsidiaries (the Grantee’s employer is sometimes
referred to herein as the (“Employer”).

 

WHEREAS, the Board
of Directors of the Company (the “Board”) on September 10, 1999,
adopted the MediCor Ltd. Non-Qualified Stock Option Plan and adopted the
Amended and Restated MediCor Ltd. Non-Qualified Stock Option Plan effective as
of February 7, 2003 (the “Plan”);

 

WHEREAS, the Plan
provides for the granting of stock options by the Board or the Program
Administrators to employees or non-employees of the Company or any subsidiary
of the Company to purchase, or to exercise certain rights with respect to,
shares of the Common Stock of the Company, no par value (the “Stock”),
in accordance with the terms and provisions thereof; and

 

WHEREAS, the
Program Administrators consider the Grantee to be a person who is eligible for
a grant of non-qualified stock options under the Plan, and has determined that
it would be in the best interest of the Company to grant the non-qualified stock
options documented herein.

 

NOW, THEREFORE,
the parties hereto, intending to be legally bound hereby, agree as follows:

 

1.             Grant of Option.  Subject to the terms and conditions
hereinafter set forth, the Company, with the approval and at the direction of
the Program Administrators, hereby grants to the Grantee, as of the Date of
Grant, an option to purchase up to the number of shares indicated on the
signature page hereof (the “Number of Option Shares”) of Stock at a
price per share as indicated on the signature page hereof (the “Strike
Price”), the fair market value. 
Such option is hereinafter referred to as the “Option” and the shares of
stock purchasable upon exercise of the Option are hereinafter sometimes
referred to as the “Option Shares.”  The Option is intended by the parties hereto to be, and shall be
treated as, an option not qualified as an incentive stock option (as such term
is defined under Section 422 of the Internal Revenue Code of 1986).

 

2.             Installment
Exercise.  Subject to such further
limitations as are provided herein, the Option shall become exercisable in the
number of installments indicated on the signature page hereof, the Grantee
having the right hereunder to purchase from the Company the following number of
Option Shares upon exercise of the Option, on and after the following dates, in
cumulative fashion as determined by the Program Administrators and indicated on
the signature page hereof (the “Vesting”).

 

3.             Termination of
Option.

(a)           The Option and all
rights hereunder with respect thereto, to the extent such rights shall not have
been exercised, shall terminate and become null and void after the expiration
of the number of years from the Date of Grant indicated on the signature page
hereof (the “Option Term”) [no more than 10 years from Date of Grant].

(b)           Upon the occurrence of
the Grantee’s ceasing for any reason to be employed by the Employer (such
occurrence being a “termination of the Grantee’s employment”), the Option, to
the extent not previously exercised, shall terminate and become null and void
within thirty (30) days after the date of such termination of the Grantee’s
employment, except (1) in the event employment is terminated for cause as
defined

 

19

 

buy applicable law,
in which case Grantee’s shall terminate and become null and void immediately or
(2) in a case where the Program Administrators may otherwise determine in its
sole and absolute discretion for up to sixty (60) days following the
termination of employment.  As
determined by the Program Administrators, upon a termination of the Grantee’s
employment by reason of disability or death, the Option may be exercised, but
only to the extent that the Option was outstanding and exercisable on such date
of disability or death, up to a one-year period following the date of such
termination of the Grantee’s employment.

(c)           In the event of the
death of the Grantee, the Option may be exercised by the Grantee’s legal
representative, but only to the extent that the Option would otherwise have
been exercisable by the Grantee.

(d)           A transfer of the
Grantee’s employment between the Company and any subsidiary of the Company, or
between any subsidiaries of the Company, shall not be deemed to be a
termination of the Grantee’s employment.

 

4.             Exercise of
Options.

(a)           The Grantee may
exercise the Option with respect to all or any part of the number of Option
Shares then exercisable hereunder by giving the Secretary of the Company
written notice of intent to exercise. 
The notice of exercise shall specify the number of Option Shares as to
which the Option is to be exercised and the date of exercise thereof.

(b)           Full payment (in U.S.
dollars) by the Grantee of the option price for the Option Shares purchased
shall be made on or before the exercise date specified in the notice of
exercise in cash, or, with the prior written consent of the Program
Administrators, in whole or in part through the surrender of shares of Stock at
their fair market value on the exercise date. 
The Grantee shall also pay any required income tax withholding taxes
which may be payable in U.S. dollars or Option Shares if acceptable to the
Company.

(c)           On the exercise date
specified in the Grantee’s notice or as soon thereafter as is practicable, the
Company shall cause to be delivered to the Grantee, a certificate or
certificates for the Option Shares then being purchased (out of theretofore
unissued Stock or reacquired Stock, as the Company may elect) upon full payment
for such Option Shares.  However, if (i)
the Grantee is subject to Section 16 of the Securities Exchange Act of
1934 and (ii) the Grantee exercises the Option before six months have passed
from the Date of Grant, the Company shall be permitted to hold in its custody
any stock certificate arising from such exercise until six months has passed
from the Date of Grant.  The obligation
of the Company to deliver Stock shall, however, be subject to the condition
that if at any time the Program Administrators shall determine in its
discretion that the listing, registration or qualification of the Option or the
Option Shares upon any securities exchange or under any state or federal law,
or the consent or approval of any governmental regulatory body, is necessary or
desirable as a condition of, or in connection with, the Option or the issuance
or purchase of Stock thereunder, the Option may not be exercised in whole or in
part unless such listing, registration, qualification, consent or approval
shall have been effected or obtained free of any conditions not acceptable to
the Program Administrators..

(d)           If the Grantee fails to
pay for any of the Option Shares specified in such notice or fails to accept
delivery thereof, the Grantee’s right to purchase such Option Shares may be
terminated by the Company.  The date specified
in the Grantee’s notice as the date of exercise shall be deemed the date of
exercise of the Option, provided that payment in full for the Option shares to
be purchased upon such exercise shall have been received by such date.

 

5.             Adjustment of and
Changes in Stock of the Company.  In
the event of a reorganization, recapitalization, change of shares, stock split,
spin-off, stock dividend, reclassification, subdivision or combination of
shares, merger, consolidation, rights offering, or any other change in the
corporate structure or shares of capital stock of the Company, the Program
Administrators shall make such adjustment as may be required under the
applicable reorganization agreement in the number and kind of shares of Stock
subject to the Option or in the option price; provided, however, that no
such adjustment shall give the Grantee any additional benefits under the
Option.  If there is no provision for
the treatment of the Option under an applicable reorganization agreement, the
Option may terminate on a date determined by the Program Administrators
following at least 30 days written notice to the Grantee.

 

20

 

6.             Fair Market Value.  As used herein, the “fair market value” of a
share of Stock shall be determined by the Board.  However, if the Stock is publicly-traded, fair market value of a
share of Stock shall be based upon the closing or other appropriate trading
price per share of Stock on a national securities exchange.

 

7.             No Rights of
Stockholders.  Neither the Grantee
nor any personal representative shall be, or shall have any of the rights and
privileges of, a stockholder of the Company with respect to any shares of Stock
purchasable or issuable upon the exercise of the Option, in whole or in part,
prior to the date of exercise of the Option.

 

8.             Non-Transferability
of Option.  During the Grantee’s
lifetime, the option hereunder shall be exercisable only by the Grantee or any
guardian or legal representative of the Grantee, and the Option shall not be
transferable except, in case of the death of the Grantee, by will or the laws
of descent and distribution, nor shall the Option be subject to attachment,
execution or other similar process.  In
the event of (a) any attempt by the Grantee to alienate, assign, pledge,
hypothecate or otherwise dispose of the Option, except as provided for herein,
or (b) the levy of any attachment, execution or similar process upon the rights
or interest hereby conferred, the Company may terminate the option by notice to
the Grantee and it shall thereupon become null and void.

 

9.             Restriction on
Exercise.  The Option may not be
exercised if the issuance of the Option Shares upon such exercise would
constitute a violation of any applicable federal or state securities or other
law or valid regulation.  As a condition
to the exercise of the Option, the Company may require the Grantee exercising
the Option to make any representation or warranty to the Company as may be
required by any applicable law or regulation and, specifically, may require the
Grantee to provide evidence satisfactory to the Company that the Option Shares
are being acquired only for investment purposes and without any present
intention to sell or distribute the shares in violation of any federal or state
securities or other law or valid regulation.

 

10.           Employment or
Service Not Affected.  The granting
of the option or its exercise shall not be construed as granting to the Grantee
any right with respect to continuance of employment or service relationship with
the Employer.  Except as may otherwise
be limited by a written agreement between the Employer and the Grantee, the
right of the Employer to terminate at will the Grantee’s employment or service
relationship with it at any time (whether by dismissal, discharge, retirement
or otherwise) is specifically reserved by the Company, as the Employer or on
behalf of the Employer (whichever the case may be), and acknowledged by the
Grantee.

 

11.           Amendment of Option.  The Option may be amended by the Program
Administrators at any time (i) if the Program Administrators determine, in
their sole discretion, that amendment is necessary or advisable in the light of
any addition to or change in the Internal Revenue Code of 1986 or in the
regulations issued thereunder, or any federal or state securities law or other
law or regulation, which change occurs after the Date of Grant and by its terms
applies to the option; or (ii) other than in the circumstances described in
clause (i), with the consent of the Grantee.

 

12.           Notice.  All notices, requests, demands, and other
communications hereunder shall be in writing and shall be deemed to have been
duly given if delivered personally or by certified mail, return receipt
requested, as indicated on the signature page hereof.

 

13.           Incorporation of
Plan by Reference.  The Option is
granted pursuant to the terms of the Plan, the terms of which are incorporated
herein by reference, and the Option shall in all respects be interpreted in
accordance with the Plan.  The Program
Administrators shall interpret and construe the Plan and this instrument, and
its interpretations and determinations shall be conclusive and binding on the
parties hereto and any other person claiming an interest hereunder, with
respect to any issue arising hereunder or thereunder.

 

21

 

14.           Governing Law.  The validity, construction, interpretation
and effect of this instrument shall exclusively be governed by and determined
in accordance with the law of the State of Delaware.

 

IN WITNESS WHEREOF,
the Company has caused its duly authorized officers to execute this Grant of
Option, and to apply the corporate seal hereto, and the Grantee has placed his
or her signature hereon, effective as of the Date of Grant.

 

	
  MEDICOR LTD.

  
	
   

  
	
  By: 

  	
   

  	
   

  	
  Address for Notices:

  
	
  Name:

  	
   

  	
  Management Offices

  
	
  Title:

  	
   

  	
  4560 S. Decatur Blvd.

  
	
   

  	
  Suite 300

  
	
   

  	
  Las Vegas, NV. 89103

  
	
  ACCEPTED AND AGREED TO:

  
	
   

  
	
  “Grantee”

  
	
   

  	
  Address for Notices:

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  
	
  Printed Name: 

  	
   

  	
   

  	
   

  
	
   

  
	
  Phone: 

  	
   

  	
   

  	
  Fax: 

  	
   

  
	
   

  
	
  E-Mail:

  	
   

  	
   

  	
  Soc. Sec. #:

  	
   

  
	
   

  
	
  “Date of Grant”
  :                                             ,
                  

  	
   

  	
  “Option Term”:
                              
  years

  
	
   

  
	
  “Number of Option Shares”:
                                                                                      
  (                                  )

  
	
   

  
	
  “Strike Price”:
                                        
  per share

  
	
   

  
	
  Installment Exercise - Vesting of Option Shares:

  
	
   

  
	
  Number of Installments:
                                                                                                                           

  
	
   

  
	
  “Vesting”:
                                                                                                                             

  
											

 

22

 

PART III

 

MEDICOR
LTD.

RESTRICTED SHARE PLAN

 

Section 1.               Purpose.  The purpose of this Restricted Share Plan
(the “Restricted
Plan”) is to promote the growth and general prosperity of the
Company by permitting the Company to grant restricted shares to help attract and
retain superior personnel for positions of substantial responsibility with the
Company and its subsidiaries and to provide individuals with an additional
incentive to contribute to the success of the Company.  The Restricted Plan is Part III of the Program.
Unless any provision herein indicates to the contrary, the Restricted Plan
shall be subject to the General Provisions of the Program.

 

Section 2.               Terms and
Conditions.  The terms and
conditions of restricted shares granted under the Restricted Plan may differ
from one another as the Program Administrators shall, in their discretion,
determine as long as all restricted shares granted under the Restricted Plan
satisfy the requirements of the Restricted Plan.

 

Each restricted
share grant shall provide to the recipient (the “Holder”) the transfer of a
specified number of shares of Common Stock of the Company that shall become
nonforfeitable upon the achievement of specified service or performance
conditions within a specified period or periods (the “Restriction Period”) as
determined by the Program Administrators. 
At the time that the restricted share is granted, the Program
Administrators shall specify the service or performance conditions and the
period of duration over which the conditions apply.

 

The Holder of
restricted shares shall not have any rights with respect to such award, unless
and until such Holder has executed an agreement evidencing the terms and
conditions of the award (the “Restricted Share Award Agreement”).  Each individual who is awarded restricted
shares shall be issued a stock certificate in respect of such shares.  Such certificate shall be registered in the
name of the Holder and shall bear an appropriate legend referring to the terms,
conditions, and restrictions applicable to such award, substantially in the
following form:

 

The transferability of this certificate and the shares
of stock represented hereby are subject to the terms and conditions (including
forfeiture) of the MediCor Ltd., Restricted Share Plan and Restricted Share Award
Agreement entered into between the registered owner and MediCor Ltd..  Copies of such Plan and Agreement are on
file in the offices of MediCor Ltd..

 

The Program
Administrators shall require that the stock certificates evidencing such shares
be held in the custody of the Company until the restrictions thereon shall have
lapsed, and that, as a condition of any restricted share award, the Holder
shall have delivered a stock power, endorsed in blank, relating to the stock
covered by such award.  At the expiration
of each Restriction Period, the Company shall redeliver to the Holder
certificates held by the Company representing the shares with respect to which
the applicable conditions have been satisfied.

 

Section 3.               Nontransferable.  Subject to the provisions of the Restricted
Plan and the Restricted Share Award Agreements, during the Restriction Period
as may be set by the Program Administrators commencing on the grant date, the
Holder shall not be permitted to sell, transfer, pledge, or assign shares of restricted
shares awarded under the Restricted Plan.

 

Section 4.               Restricted Share
Rights Upon Employment or Service. 
If a Holder terminates employment or service with the company prior to
the expiration of the Restriction Period, any restricted shares granted to him
subject to such Restriction Period shall be forfeited by the Holder and shall
be transferred to the Company.  The
Program Administrators may, in their sole discretion, accelerate the lapsing of
or waive such

 

23

 

restrictions in
whole or in part based upon such factors and such circumstances as the Program
Administrators may determine, in its sole discretion, including, but not
limited to, the Plan Participant’s retirement, death, or disability.

 

Section 5.               Stockholder
Rights.  The Holder shall have, with
respect to the restricted shares granted, all of the rights of a stockholder of
the Company, including the right to vote the shares, and the right to receive
any dividends thereon.  Certificates for
shares of unrestricted stock shall be delivered to the grantee promptly after,
and only after, the Restriction Period shall expire without forfeiture in
respect of such restricted shares.

 

Section 6.               Compliance with
Securities Laws.  Shares shall not
be issued under the Restricted Plan unless the issuance and delivery of the
shares pursuant thereto shall comply with all relevant provisions of foreign,
state and federal law, including, without limitation, the Securities Act of
1933, as amended, and the Exchange Act, and the rules and regulations
promulgated thereunder, and the requirements of any stock exchange upon which
the shares may then be listed, and shall be further subject to the approval of
counsel for the Company with respect to such compliance.  The Program Administrators may also require a
Holder to furnish evidence satisfactory to the Company, including a written and
signed representation letter and consent to be bound by any transfer
restrictions imposed by law, legend, condition, or otherwise, that the shares
are being purchased only for investment purposes and without any present
intention to sell or distribute the shares in violation of any state or federal
law, rule, or regulation.  Further, each
Holder shall consent to the imposition of a legend on the shares of Common
Stock issued pursuant to the Restricted Share Plan and the imposition of
stop-transfer instructions restricting their transferability as required by law
or by this Section 6.

 

Section 7.               Continued
Employment or Service.  Each Holder,
if requested by the Program Administrators, must agree in writing as a
condition of the granting of his or her restricted shares, to remain in the
employment of, or service to, the Company or any of its subsidiaries following
the date of the granting of that restricted share for a period specified by the
Program Administrators.  Nothing in the
Restricted Plan or in any restricted share granted hereunder shall confer upon
any Holder any right to continued employment by, or service to, the Company or
any of its subsidiaries, or limit in any way the right of the Company or any
subsidiary at any time to terminate or alter the terms of that employment or
service arrangement.

 

24

 

MEDICOR
LTD.

RESTRICTED
SHARES PLAN

 

RESTRICTED SHARE AWARD AGREEMENT

 

THIS AGREEMENT is
made as of the date indicated on the signature page hereof by and between
MediCor Ltd. (the “Company”), and the individual or entity
indicated on the signature page hereof (the “Grantee”):

 

WHEREAS, the
Company maintains the MediCor Ltd. Restricted Shares Plan (“Restricted
Shares Plan”) under which the Program Administrators may award
shares of the Company’s common stock, no par value (“Common Stock”) to employees
and non-employees as the Program Administrators may determine, subject to
terms, conditions, or restrictions as it may deem appropriate; and

 

WHEREAS, pursuant
to the Restricted Shares Plan, the Program Administrators has awarded to
Grantee a restricted stock award conditioned upon the execution by the Company
and Grantee of a Restricted Share Award Agreement setting forth all the terms
and conditions applicable to such award;

 

NOW, THEREFORE, in
consideration of the mutual promise and covenant contained herein, it is hereby
agreed as follows:

 

1.             Award of Shares.  Under the terms of the Restricted Shares
Plan, the Program Administrators hereby awards and transfers to Grantee a
restricted stock award on the date indicated on the signature page hereof  (the “Grant Date”), covering shares of Common
Stock (“Shares”)
subject to the terms, conditions, and restrictions set forth in this
Agreement.  This transfer of Shares
shall constitute a transfer of such property in connection with Grantee’s
performance of service to the Company (which transfer is intended to constitute
a “transfer” for purposes of Section 83 of the Internal Revenue Code).

 

2.             Share Restrictions.  During the period beginning on the Grant
Date and ending on the date(s) specified by the Program Administrators (the “Restriction
Period”), Grantee’s ownership of the Shares shall be subject to a
risk of forfeiture (which risk is intended to constitute a “substantial risk of
forfeiture” for purposes of Section 83 of the Internal Revenue Code).  Specifically, if Grantee’s employment or
service with the Company is terminated for any reason, including Grantee’s
death, disability, or retirement at any time before the Restriction Period
ends, Grantee shall forfeit his or her ownership in the Shares.  However, in the event of Grantee’s termination
of employment or service, the Program Administrators may, in its sole
discretion, based upon relevant circumstances such as the Grantee’s death,
disability, or retirement, waive the minimum employment or service requirement
and provide Grantee with a nonforfeitable right to the Shares as of the date of
such termination of employment or service.

 

3.             Stock Certificates.  A stock certificate evidencing the Shares
shall be issued in the name of Grantee as of the Grant Date.  Grantee shall thereupon be the shareholder
of all the Shares represented by the stock certificate.  As such, Grantee shall be entitled to all
rights of a stockholder of the Company, including the right to vote the Shares
and receive dividends and/or other distributions declared on such Shares.

Physical
possession or custody of the stock certificate shall be retained by the Company
until such time as the Restriction Period lapses without the occurrence of any
forfeiture of the Shares in a manner described in the above Paragraph 2. Upon the
expiration of the Restriction Period without the occurrence of such a
forfeiture, the Company shall cause the stock certificate covering the Shares
to be delivered to Grantee.  In the
event that Grantee’s employment or service with the Company is terminated prior
to the lapse of the Restriction Period and there occurs a forfeiture of the
Shares, the stock certificate representing such Shares shall be then canceled
and revert to the Company.

 

25

 

4.             Nontransferable.  During the Restriction Period, the Shares
covered by the restricted stock award shall not be transferable by Grantee by
means of sale, assignment, sale, pledge, encumbrance, or otherwise.  During the Restriction Period, the Company
shall place a legend on the stock certificate restricting the transferability
of such certificate and referring to the terms and conditions applicable to the
Shares pursuant to the Restricted Shares Plan and this Agreement.

Upon the lapse of
the Restriction Period, the Shares shall not be delivered to Grantee if such
delivery would constitute a violation of any applicable federal or state
securities or other law or valid regulation. 
As a condition to the delivery of the Shares to Grantee, the Company may
require Grantee to make any representation or warranty as may be required by
any applicable law or regulation and, specifically, may require Grantee to
provide evidence satisfactory to the Company that the Shares are being acquired
only for investment purposes and without any present intention to sell or
distribute the shares in violation of any federal or state securities or other
law or valid regulation.

 

5.             Administration.  The Program Administrators shall have full
authority and discretion (subject only to the express provisions of the
Restricted Shares Plan) to decide all matters relating to the administration
and interpretation of the Restricted Shares Plan and this Agreement.  All such Program Administrators
determinations shall be final, conclusive, and binding upon the Company,
Grantee, and any and all interested parties.

 

6.             Right to Continued
Employment or Service.  Nothing in
the Restricted Shares Plan or this Agreement shall confer on a Grantee any
right to continue in the employ of or service to the Company or, except as may
otherwise be limited by a written agreement between the Company and the
Grantee, in any way affect the Company’s right to terminate Grantee’s
employment or service, at will, at any time without prior notice at any time
for any or no reason (whether by dismissal, discharge, retirement or
otherwise).

 

7.             Amendment.  This Agreement shall be subject to the terms
of the Restricted Shares Plan as amended, the terms of which are incorporated
herein by reference.  However, the
restricted stock award that is the subject of this Agreement may not in any way
be restricted or limited by any Restricted Shares Plan amendment or termination
approved after the date of the award without Grantee’s written consent.

 

8.             Force and Effect.  The various provisions of this Agreement are
severable in their entirety.  Any
determination of invalidity or unenforceability of any one provision shall have
no effect on the continuing force and effect of the remaining provisions.

 

9.             Governing Law.  This Agreement shall be construed and
enforced in accordance with and governed by the laws of the State of Delaware.

 

10.           Successors.  This Agreement shall be binding upon and
inure to the benefit of the successors, assigns, and heirs of the respective
parties.

 

11.           Notice.  All notices, requests, demands, and other
communications hereunder shall be in writing and shall be deemed to have been
duly given if delivered personally or by certified mail, return receipt
requested, as indicated on the signature page hereof.

 

12.           Incorporation of
Plan by Reference.  The Option is
granted pursuant to the terms of the Plan, the terms of which are incorporated
herein by reference, and the Option shall in all respects be interpreted in
accordance with the Plan.  The Program
Administrators shall interpret and construe the Plan and this instrument, and
its interpretations and determinations shall be conclusive and binding on the
parties hereto and any other person claiming an interest hereunder, with
respect to any issue arising hereunder or thereunder.

 

26

 

IN WITNESS WHEREOF, the parties hereto have signed
this Agreement as of the date hereof.

 

	
  MEDICOR LTD.

  
	
   

  
	
  By: 

  	
   

  	
   

  	
  Address for Notices:

  
	
  Name:

  	
   

  	
  Management Offices

  
	
  Title:

  	
   

  	
  4560 S. Decatur Blvd.
  Suite 300

  
	
   

  	
  Las Vegas, NV. 89103

  
	
   

  
	
  ACCEPTED AND AGREED TO:

  
	
   

  
	
  “Grantee”

  
	
   

  	
  Address for Notices:

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  
	
  Printed Name: 

  	
   

  	
   

  	
   

  
	
   

  
	
  Phone: 

  	
   

  	
   

  	
  Fax:

  	
   

  
	
   

  
	
  E-Mail:

  	
   

  	
   

  	
  Soc. Sec. #:

  	
   

  
	
   

  
	
  “Grant Date”
  :                                                ,
                

  	
   

  	
  “Restricted Period”:
                             
  years

  
	
   

  
	
  “Number of Restricted Shares”:
                                                              
  (                                             )

  
											

 

27

 

PART IV

 

MEDICOR
LTD.

EMPLOYEE STOCK PURCHASE PLAN

 

Section 1.               Purpose.  The purpose of the MediCor Ltd. Employee
Stock Purchase Plan (the “Stock Purchase Plan”) is to promote the
growth and general prosperity of the Company by permitting the Company to sell
to employees of the Company and its subsidiaries shares of the Company’s stock
in accordance with Section 423 of the Code (“Section 423”), and it
is the intention of the Company to have the Stock Purchase Plan qualify as an
Employee Stock Purchase Plan in accordance with Section 423, and the Stock
Purchase Plan shall be construed to administer stock purchases and to extend
and limit participation consistent with the requirements of
Section 423.  The Stock Purchase
Plan will be administered by the Program Administrators.

 

Section 2.               Maximum Number
of Shares; Terms and Conditions. The maximum aggregate number of shares of
Common Stock subject to the Stock Purchase Plan shall be One Hundred Twenty
Four Thousand Two Hundred Sixty Eight (124,268).  The terms and conditions of shares to be offered to be sold to
employees of the Company and its subsidiaries under the Stock Purchase Plan
shall comply with Section 423.

 

Section 3.               Offering Periods
and Participation.  The Stock
Purchase Plan shall be implemented through a series of consecutive fiscal
quarters of the Company (the “Offering Periods”).  A full-time employee may participate in the
Stock Purchase Plan and may enroll in an Offering Period by delivering to the
Company’s payroll office an agreement evidencing the terms and conditions of
the stock subscription in a form prescribed by the Program Administrators (the
“Purchase
Agreement”) at least thirty (30) business days prior to the
Enrollment Date for that Offering Period (or such lesser number of business
days as the Program Administrators, in their sole discretion, may permit).  Eligible Employees who participate in the
Stock Purchase Plan may do so in the Offering Period.  Purchases will be made through payroll deductions, unless direct
purchases have been approved by the Program Administrators.  The first day of each Offering Period will
be the “Enrollment Date” and the last day of each period will be the “Exercise
Date.”

 

Section 4.               Purchase Price.  The “Purchase Price” means an amount as
determined by the Program Administrators that is the lesser of:  (a) the Purchase Price Discount from the
Fair Market Value of a share of Common Stock on the Enrollment Date, or (b) the
Purchase Price Discount from the Fair Market Value of a share of Common Stock
on the Exercise Date.  The “Purchase
Price Discount” shall mean the amount of the discount from the Fair Market
Value granted to Plan Participants not to exceed fifteen percent (15%) of the
Fair Market Value as established by the Board from time to time.  “Fair Market Value” of a share of stock
shall be determined by the Board. 
However, if the Stock is publicly-traded, fair market value of a share
of Stock shall be based upon the closing or other appropriate trading price per
share of Stock on a national securities exchange.

 

Section 5.               Grants.

(a)           Grants.  On the Enrollment Date for each Offering
Period, each Eligible Employee participating in such Offering Period shall be
granted the right to purchase on each Exercise Date during such Offering Period
(at the Purchase Price) shares of Common Stock in an amount from time to time
specified by the Program Administrators as set forth in Section 5(b)
below.  The Program Administrators will
also establish the Purchase Price Discount and the Periodic Exercise
Limit.  The right to purchase shall
expire immediately after the last Exercise Date of the Offering Period.

(b)           Grant Limitations.  Any provisions of the Stock Purchase Plan to
the contrary notwithstanding, no Plan Participant shall be granted a right to
purchase under the Stock Purchase Plan:

(i)            if, immediately after
the grant, such Plan Participant would own stock possessing five percent (5%)
or more of the total combined voting power or value of all classes of stock of
the Company or of any subsidiary (applying the constructive ownership rules of
Section 424(d) of the Code and

 

28

 

treating stock
that a Plan Participant may acquire under outstanding options as stock owned by
the Plan Participant);

(ii)           that permits such Plan
Participant’s rights to purchase stock under all employee stock purchase plans
of the Company and its subsidiaries to accrue at a rate that exceeds
Twenty-Five Thousand Dollars ($25,000) worth of stock (determined at the Fair
Market Value of the shares at the time such purchase) in any calendar year
(computed utilizing the rules of Section 423(b)(8) of the Code); or

(iii)          that permits a Plan
Participant to purchase Stock in excess of twenty percent (20%) of his or her
Compensation, which shall include the gross base salary or hourly compensation
paid to a Plan Participant and the gross amount of any targeted bonus, without
reduction for contributions to any 401(k) plan sponsored by the Company.

(c)           No Rights in Respect of Underlying
Stock.  The Plan Participant
will have no interest or voting right in shares covered by a right to purchase
until such purchase has been completed.

(d)           Plan Account.  The Company shall maintain a plan account for the Plan
Participants in the Stock Purchase Plan, to which are credited the payroll
deductions made for such Plan Participant pursuant to Section 6 and from
which are debited amounts paid for the purchase of shares.

(e)           Common Stock Account.  As a condition of participation in the Stock
Purchase Plan, each Plan Participant shall be required to receive shares
purchased under the Stock Purchase Plan in a common stock account (the “Common Stock
Account”) maintained by the Company to hold the Common Stock
purchased under the Stock Purchase Plan.

(f)            Dividends on Shares.  Subject to the limitations of
Section 5(a) hereof and Section 423(b)(8) of the Code, all cash
dividends, if any, paid with respect to shares of Common Stock purchased under
the Stock Purchase Plan and held in a Plan Participant’s Common Stock Account
shall be automatically invested in shares of Common Stock purchased at 100% of
Fair Market Value on the next Exercise Date. 
All non-cash distributions on Common Stock purchased under the Stock
Purchase Plan and held in a Plan Participant’s Common Stock Account shall be
paid to the Plan Participant as soon as practicable.

 

Section 6.               Payroll
Deductions/Direct Purchases.

(a)           Plan Participant Designations.  The Purchase Agreement applicable to an
Offering Period shall designate payroll deductions to be made on each payday
during the Offering Period as a whole number percentage specified by the
Program Administrators of such Eligible Employee’s Compensation for the pay
period preceding such payday.  Direct
purchases may be permitted on such terms specified by the Program
Administrators.

(b)           Plan Account Balances.  The Company shall make payroll
deductions as specified in each Plan Participant’s Subscription Agreement on
each payday during the Offering Period and credit such payroll deductions to
such Plan Participant’s Plan Account.  A
Plan Participant may not make any additional payments into such Plan
Account.  No interest will accrue on any
payroll deductions.  All payroll
deductions received or held by the Company under the Stock Purchase Plan may be
used by the Company for any corporate purpose, and the Company shall not be
obligated to segregate such payroll deductions.

(c)           Plan Participant Changes.  A Plan Participant may discontinue his or
her participation in the Stock Purchase Plan as provided in Section 8, or
may increase or decrease (subject to such limits as the Program Administrator
may impose) the rate of his or her payroll deductions during any Offering
Period by filing with the Company a new Subscription Agreement authorizing such
a change in the payroll deduction rate. 
The change in rate shall be effective with the first full payroll period
following fifteen (15) business days after the Company’s receipt of the new
Subscription Agreement, unless the Company elects to process a given change in
participation more quickly.

(d)           Decreases.  Notwithstanding the foregoing, to the extent necessary
to comply with Section 423(b)(8) of the Code and Section 4(b) herein,
a Plan Participant’s payroll deductions shall be decreased to zero percent at
such time during any Purchase Period that is scheduled to end during a calendar
year (the “Current
Purchase Period”) when the aggregate of all payroll deductions
previously used to purchase stock under the Stock Purchase Plan in a prior
Purchase Period which ended during that calendar year plus all payroll

 

29

 

deductions
accumulated with respect to the Current Purchase Period equal to the maximum
permitted by Section 423(b)(8) of the Code.  Payroll deductions shall recommence at the rate provided in such
Plan Participant’s Subscription Agreement at the beginning of the first
Purchase Period that is scheduled to end in the following calendar year, unless
terminated by the Plan Participant as provided in Section 8.

(e)           Tax Obligations.  At the time of the purchase of shares, and
at the time any Common Stock issued under the Stock Purchase Plan to a Plan
Participant is disposed of, the Plan Participant must adequately provide for
the Company’s federal, state or other tax withholding obligations, if any, that
arise upon the purchase of shares or the disposition of the Common Stock.  At any time, the Company may, but will not
be obligated to, withhold from the Plan Participant’s Compensation the amount
necessary for the Company to meet applicable withholding obligations,
including, but not limited to, any withholding required to make available to
the Company any tax deductions or benefit attributable to sale or early
disposition of Common Stock by the eligible employee.

(f)            Statements of Account.  The Company shall maintain each Plan
Participant’s Plan Account and shall give each Plan Participant a statement of
account at least annually.  Such
statements will set forth the amounts of payroll deductions, the Purchase Price
applicable to the Common Stock purchased, the number of shares purchased, the
remaining cash balance and the dividends received, if any, for the period
covered.

 

Section 7.               Purchase of
Shares.

(a)           Automatic Exercise on Exercise
Dates.  Unless a Plan
Participant withdraws as provided in Section 8 below, his or her Option
for the purchase of shares will be exercised automatically on each Exercise
Date within the Offering Period in which such Plan Participant is enrolled for
the maximum whole number of shares of Common Stock as can then be purchased at
the applicable Purchase Price with the payroll deductions accumulated in such
Plan Participant’s Plan Account and not yet applied to the purchase of shares
under the Stock Purchase Plan, subject to the Periodic Exercise Limit.  All such shares purchased under the Stock
Purchase Plan shall be credited to the Plan Participant’s Common Stock
Account.  During a Plan Participant’s
lifetime, a Plan Participant’s options to purchase shares under the Stock
Purchase Plan shall be exercisable only by the Plan Participant.

(b)           Compliance With Securities Law.  Shares of Common Stock shall not be issued
with respect to any purchase of shares granted under the Stock Purchase Plan,
unless the purchase of shares and the issuance and delivery of those shares
pursuant to that exercise comply with all applicable provisions of foreign,
state and federal law including, without limitation, the Securities Act of
1933, as amended and the Exchange Act, and the rules and regulations
promulgated thereunder, and the requirements of any stock exchange upon which
the shares may then be listed, and shall be further subject to the approval of
counsel for the Company with respect to such compliance.  The Program Administrators may also require
a Plan Participant to furnish evidence satisfactory to the Company, including a
written and signed representation letter and consent to be bound by any
transfer restrictions imposed by law, legend, condition, or otherwise, that the
shares are being purchased only for investment purposes and without any present
intention to sell or distribute the shares in violation of any state or federal
law, rule, or regulation.  Further, each
Plan Participant shall consent to the imposition of a legend on the shares of
Common Stock purchased and the imposition of stop-transfer instructions
restricting their transferability as required by law or by this Section 7.

(c)           Excess Plan Account Balances.  If, due to application of the Periodic
Exercise Limit or otherwise, there remains in a Plan Participant’s Plan Account
immediately following exercise of such Plan Participant’s option to purchase
shares on an Exercise Date any cash accumulated immediately preceding such
Exercise Date and not applied to the purchase of shares under the Stock
Purchase Plan, such cash shall promptly be returned to the Plan Participant; provided,
however, that if the Plan Participant shall be enrolled in the
Offering Period (including, without limitation, by not withdrawing pursuant to
Section 8), such cash shall be contributed to the Plan Participant’s Plan
Account for such next Purchase Period.

 

Section 8.               Holding Period.  The Program Administrators may establish, as
a condition to

 

30

 

participation, a
holding period of up to one (1) year.

 

Section 9.               Withdrawal;
Termination of Employment.

(a)           Voluntary Withdrawal.  A Plan Participant may withdraw from an
Offering Period by giving written notice to the Company’s payroll office at
least thirty (30) business days prior to the next Exercise Date.  Such withdrawal shall be effective beginning
thirty (30) business days after receipt by the Company’s payroll office of
notice thereof.  On or promptly following
the effective date of any withdrawal, all (but not less than all) of the withdrawing
Plan Participant’s payroll deductions credited to his or her Plan Account and
not yet applied to the purchase of shares under the Stock Purchase Plan will be
paid to such Plan Participant, and on the effective date of such withdrawal
such Plan Participant’s option to purchase shares for the Offering Period will
be automatically terminated and no further payroll deductions for the purchase
of shares will be made during the Offering Period.  If a Plan Participant withdraws from an Offering Period, payroll
deductions will not resume at the beginning of any succeeding Offering Period,
unless the Plan Participant delivers to the Company a new Subscription
Agreement with respect thereto.

(b)           Termination of Employment.  Promptly after a Plan Participant’s ceasing
to be an employee for any reason all shares of Common Stock held in a Plan
Participant’s Common Stock Account and the payroll deductions credited to such
Plan Participant’s Plan Account and not yet applied to the purchase of shares
under the Stock Purchase Plan will be returned to such Plan Participant or, in
the case of his or her death, to the person or persons entitled thereto, and
such Plan Participant’s option to purchase shares will be automatically
terminated, provided
that, if the Company does not learn of such death more than five (5) business
days prior to an Exercise Date, payroll deductions credited to such Plan
Participant’s Plan Account may be applied to the purchase of shares under the
Stock Purchase Plan on such Exercise Date.

 

Section 10.             Non-transferability.  Neither payroll deductions credited to a
Plan Participant’s Plan Account nor any rights with regard to the exercise of a
purchase of shares or to receive shares under the Stock Purchase Plan may be
assigned, transferred, pledged or otherwise disposed of by the Plan Participant
in any way other than by will or the laws of descent and distribution, and any
purchase of shares by a Plan Participant shall, during such Plan Participant’s
lifetime, be exercisable only by such Plan Participant.  Any such attempt at assignment, transfer,
pledge or other disposition shall be without effect, except that the Program
Administrator may treat such act as an election to withdraw from an offering
period in accordance with Section 8.

 

Section 11.             Compliance with
Securities Laws.  Shares shall not
be issued with respect to the Stock Purchase Plan, unless the issuance and
delivery of the shares pursuant thereto shall comply with all applicable
provisions of foreign, state and federal law, including, without limitation,
the Securities Act of 1933, as amended, and the Exchange Act, and the rules and
regulations promulgated thereunder, and the requirements of any stock exchange
upon which the shares may then be listed, and shall be further subject to the
approval of counsel for the Company with respect to such compliance.  The Program Administrators may also require
a Plan Participant to furnish evidence satisfactory to the Company, including a
written and signed representation letter and consent to be bound by any
transfer restrictions imposed by law, legend, condition, or otherwise, that the
shares are being purchased only for investment purposes and without any present
intention to sell or distribute the shares in violation of any state or federal
law, rule, or regulation.  Further, each
Plan Participant shall consent to the imposition of a legend on the shares of
Common Stock subject to his or her Option and the imposition of stop-transfer
instructions restricting their transferability as required by law or by this
Section 11.

 

Section 12.             Continued
Employment or Service.  Each Plan
Participant, if requested by the Program Administrators, must agree in writing,
to remain in the employment of, or service to, the Company or any of its
subsidiaries following the date of the granting of that option to purchase
shares for a period specified by the Program Administrators.  Nothing in this Stock Purchase Plan shall
confer upon any Plan Participant any right to continued employment by, or
service to, the Company or any of its subsidiaries, or limit in any way the
right of the Company or any subsidiary at any time to terminate or alter the
terms of that employment or service

 

31

 

arrangement.

 

PART V

 

MEDICOR
LTD.

NON-EMPLOYEE DIRECTOR STOCK OPTION PLAN

 

Section 1.               Purpose; Plan.  The purpose of this MediCor Ltd.,
Non-Employee Director Stock Option Plan (the “Directors Plan”) is to
permit the Company to grant options to purchase shares of its Common Stock to
non-employee directors of the Company. 
Any option granted pursuant to the Directors Plan shall be clearly and
specifically designated as not being an incentive stock option, as defined in
Section 422 of the Code.  This
Directors Plan is Part V of the Program. 
Unless any provision herein indicates to the contrary, the Directors
Plan shall be subject to the General Provisions of the Program.  On the next to last business day of each
fiscal year of the Company, the Company shall grant to each non-employee
director of the Company options to purchase that number of shares of Common
Stock as determined annually by the Program Administrators. The terms and
conditions of options granted under the Directors Plan shall be in duration,
form and substance as the Program Administrators shall in their discretion
determine, but in no event shall any option granted under the Directors Plan
expire later than ten (10) years from the date on which the option is granted.

 

Section 2.               Compliance with
Securities Laws.  Shares of Common Stock
shall not be issued with respect to any option granted under the Directors
Plan, unless the exercise of that option and the issuance and delivery of the
shares pursuant thereto shall comply with all applicable provisions of foreign,
state and federal law, including, without limitation, the Securities Act of
1933, as amended, and the Exchange Act, and the rules and regulations
promulgated thereunder, and the requirements of any stock exchange upon which
the shares may then be listed, and shall be further subject to the approval of
counsel for the Company with respect to such compliance.  The Program Administrators may also require
an Optionee to furnish evidence satisfactory to the Company, including a
written and signed representation letter and consent to be bound by any
transfer restrictions imposed by law, legend, condition, or otherwise, that the
shares are being purchased only for investment purposes and without any present
intention to sell or distribute the shares in violation of any state or federal
law, rule, or regulation.  Further, each
Optionee shall consent to the imposition of a legend on the shares of Common
Stock subject to his or her option and the imposition of stop-transfer
instructions restricting their transferability as required by law or by this
Section 2.

 

Section 3.               Adjustments to
Number and Purchase Price of Optioned Shares.  All options granted pursuant to the terms of this Directors Plan
shall be adjusted in a manner prescribed by Article 6 of the General
Provisions of the Program.

 

Section 4.               Purchase Price.  The purchase price for shares acquired
pursuant to the exercise, in whole or in part, of any option shall not be less
than the fair market value of the shares at the time of the grant of the
option.  Fair market value (the “Fair Market
Value”) shall be determined by the Program Administrators on the
basis of such factors as they deem appropriate; provided, however, that Fair
Market Value on any day shall be deemed to be, if the Common Stock is traded on
a national securities exchange, the closing price (or, if no reported sale
takes place on such day, the mean of the reported bid and asked prices) of the
Common Stock on such day on the principal such exchange, or, if the stock is
included on the composite tape, the composite tape.  In each case, the Program Administrators’ determination of Fair
Market Value shall be conclusive.

 

Notwithstanding
the above portion of this Section 4, if at the time an option is granted
the Optionee owns or would be considered to own by reason of Code
Section 424(d) more than 10% of the total combined voting power of all
classes of stock of the Company or its subsidiaries, the purchase price of the
shares covered by such option shall not be less than 110% of the Fair Market
Value of a share of Common Stock on the date the option is

 

32

 

granted.

 

PART VI

 

MEDICOR
LTD.

STOCK APPRECIATION RIGHTS PLAN

 

Section 1.               SAR Terms and
Conditions.  The purpose of this
Stock Appreciation Rights Plan (the “SAR Plan”) is to promote the growth and
general prosperity of the Company by permitting the Company to grant restricted
shares to help attract and retain superior personnel for positions of
substantial responsibility with the Company and its subsidiaries and to provide
individuals with an additional incentive to contribute to the success of the
Company.  The terms and conditions of
SARs granted under the SAR Plan may differ from one another as the Program
Administrators shall, in their discretion, determine in each SAR agreement (the
“SAR
Agreement”).  Unless any
provision herein indicates to the contrary, this SAR Plan shall be subject to
the General Provisions of the Program.

 

Section 2.               Duration of SARs.  Each SAR and all rights thereunder granted
pursuant to the terms of the SAR Plan shall expire on the date determined by
the Program Administrators as evidenced by the SAR Agreement, but in no event
shall any SAR expire later than ten (10) years from the date on which the SAR
is granted. In addition, each SAR shall be subject to early termination as
provided in the SAR Plan.

 

Section 3.               Grant.  Subject to the terms and conditions of the
SAR Agreement, the Program Administrators may grant the right to receive a
payment upon the exercise of a SAR which reflects the appreciation in the Fair
Market Value of the number of shares of Common Stock for which such SAR was
granted to any person who is eligible to receive Awards either: (i) in tandem
with the grant of an Incentive Option; (ii) in tandem with the grant of a Nonqualified
Option; or (iii) independent of the grant of an Incentive Option or
Nonqualified Option.  Each grant of a
SAR which is in tandem with the grant of an Incentive Option or Nonqualified
Option shall be evidenced by the same agreement as the Incentive Option or
Nonqualified Option which is granted in tandem with such SAR and such SAR shall
relate to the same number of shares of Common Stock to which such Option shall
relate and such other terms and conditions as the Program Administrators, in
their sole discretion, deem are not inconsistent with the terms of the SAR
Plan, including conditions on the exercise of such SAR which relate to the
employment of the Plan Participant or any requirement that the Plan Participant
exchange a prior outstanding option and/or SAR.

 

Section 4.               Payment at
Exercise. Upon the settlement of a SAR in accordance with the terms of the
SAR Agreement, the Plan Participant shall (subject to the terms and conditions
of the SAR Plan and SAR Agreement) receive a payment equal to the excess, if
any, of the SAR Exercise Price (as defined below) for the number of shares of
the SAR being exercised at that time over the SAR Grant Price (as defined
below) for such shares. Such payment may be paid in cash or in shares of the
Company’s Common Stock or by a combination of the foregoing, at the time of
exercise of the SAR, specified by the Program Administrators in the SAR
Agreement. If any portion of the payment is paid shares of the Company’s Common
Stock, such shares shall be valued for this purpose at the SAR Exercise Price
on the date the SAR is exercised and any payment in shares which calls for a
payment in fractional share shall automatically be paid in cash based on such
valuation. As used herein, “SAR Exercise Date” shall mean the date on which the
exercise of a SAR occurs under the SAR Agreement, “SAR Exercise Price” shall
mean the Fair Market Value of a shares of Common Stock on a SAR Exercise Date
and “SAR Grant Price” shall mean the price which would have been the option
exercise price for one share of Common Stock if the SAR had been granted as an
option, or if the SAR granted in tandem with an option, the option exercise
price per share for the related option.

 

Section 5.               Special Terms
and Conditions.  Each SAR Agreement
which evidences the grant of a SAR shall incorporate such terms and conditions
as the Program Administrators in their absolute

 

33

 

discretion deem are not
inconsistent with the terms of the SAR Plan and the agreement for Incentive
Option or Nonqualified Option, if any, granted in tandem with such SAR except
that: (i) if a SAR is granted in tandem with an Incentive Option or
Nonqualified Option, the SAR shall be exercisable only when the related
Incentive Option or Nonqualified Option is exercisable; and (ii) the Plan
Participant’s right to exercise a SAR granted in tandem with an Incentive
Option or Nonqualified Option shall be forfeited to the extent that the Plan
Participant exercises the related Incentive Option or Nonqualified Option and
the Plan Participant’s right to exercise the Incentive Option or Nonqualified
Option shall be forfeited to the extent the Plan Participant exercises the
related SAR, but any such  forfeiture shall not count as a forfeiture
for purposes of making the shares subject to such option or SAR again available
for use under the General Provisions of the Plan.

 

Section 6.               Compliance with
Securities Laws.  Shares shall not
be issued with respect to any option granted under the SAR Plan, unless the
exercise of that option and the issuance and delivery of the shares pursuant
thereto shall comply with all applicable provisions of foreign, state and
federal law, including, without limitation, the Securities Act of 1933, as
amended, and the Exchange Act, and the rules and regulations promulgated
thereunder, and the requirements of any stock exchange upon which the shares
may then be listed, and shall be further subject to the approval of counsel for
the Company with respect to such compliance. 
The Program Administrators may also require an Optionee to furnish
evidence satisfactory to the Company, including a written and signed
representation letter and consent to be bound by any transfer restrictions
imposed by law, legend, condition, or otherwise, that the shares are being
purchased only for investment purposes and without any present intention to
sell or distribute the shares in violation of any state or federal law, rule,
or regulation.  Further, each Optionee
shall consent to the imposition of a legend on the shares of Common Stock
subject to his or her option and the imposition of stop-transfer instructions
restricting their transferability as required by law or by this Section 6.

 

Section 7.               Continued
Employment or Service.  Each
Optionee, if requested by the Program Administrators, must agree in writing as
a condition of receiving his or her option, to remain in the employment of, or
service to, the Company or any of its subsidiaries following the date of the
granting of that option for a period specified by the Program
Administrators.  Nothing in this SAR
Plan or in any option granted hereunder shall confer upon any Optionee any
right to continued employment by, or service to, the Company or any of its
subsidiaries, or limit in any way the right of the Company or any subsidiary at
any time to terminate or alter the terms of that employment or service
arrangement.

 

Section 8.               Option Rights
Upon Termination of Employment or Service. If an Optionee under this SAR
Plan ceases to be employed by, or provide services to, the Company or any of
its subsidiaries for any reason other than death or disability, his or her
option shall immediately terminate; provided, however, that the Program
Administrators may, in their sole and absolute discretion, allow the option to
be exercised, to the extent exercisable on the date of termination of
employment or service, at any time within sixty (60) days after the date of
termination of employment or service, unless either the option or this
Nonqualified Plan otherwise provides for earlier termination.

 

Section 9.               Option Rights
Upon Disability.  If an Optionee
becomes disabled within the meaning of Code Section 422 (e) (3) while
employed by the Company or any subsidiary corporation, the Program
Administrators, in their discretion, may allow the option to be exercised, to
the extent exercisable on the date of termination of employment, at any time
within one year after the date of termination of employment due to disability,
unless either the option or the SAR Plan otherwise provides for earlier
termination.

 

34

 

PART VII

 

MEDICOR LTD.

OTHER STOCK RIGHTS
PLAN

 

Section 1.               Terms and
Conditions.  The purpose of the
Other Stock Rights Plan (the “Stock Rights Plan”) is to promote the
growth and general prosperity of the Company by permitting the Company to grant
restricted shares to help attract and retain superior personnel for positions
of substantial responsibility with the Company and its subsidiaries to provide
individuals with an additional incentive to the success of the Company.  The terms and conditions of Performance
Shares, Stock Payments or Dividend Equivalent Rights granted under the Stock
Rights Plan may differ from one another as the Program Administrators shall, in
their discretion, determine in each stock rights agreement (the “Stock
Rights Agreement”). Unless any provision herein indicates to
the contrary, this Stock Rights Plan shall be subject to the General Provisions
of the Program.

 

Section 2.               Duration.
Each Performance Share or Dividend Equivalent Right and all rights thereunder
granted pursuant to the terms of the Stock Rights Plan shall expire on the date
determined by the Program Administrators as evidenced by the Stock Rights
Agreement, but in no event shall any Performance Shares or Dividend Equivalent
Rights expire later than ten (10) years from the date on which the Performance
Shares or Dividend Equivalent Rights are granted. In addition, each Performance
Share, Stock Payment or Dividend Equivalent Right shall be subject to early
termination as provided in the Stock Rights Plan.

 

Section 3.               Grant.
Subject to the terms and conditions of the Stock Rights Agreement, the Program
Administrators may grant Performance Shares, Stock Payments or Dividend
Equivalent Rights as provided under the Stock Rights Plant. Each grant of
Performance Shares, Dividend Equivalent Rights and Stock Payments shall be
evidenced by a Stock Rights Agreement, which shall state the terms and
conditions of each as the Program Administrators, in their sole discretion,
deem are not inconsistent with the terms of the Stock Rights Plan.

 

Section 4.               Performance
Shares.  Performance Shares shall
become payable to a Plan Participant based upon the achievement of specified
Performance Objectives and upon such other terms and conditions as the Program
Administrators may determine and specify in the Stock Rights Agreement
evidencing such Performance Shares. 
Each grant shall satisfy the conditions for performance-based awards
hereunder and under the General Provisions. A grant may provide for the
forfeiture of Performance Shares in the event of termination of employment or
other events, subject to exceptions for death, disability, retirement or other
events, all as the Program Administrators may determine and specify in the
Stock Rights Agreement for such grant. Payment may be made for the Performance
Shares at such time and in such form as the Program Administrators shall
determine and specify in the Stock Rights Agreement and payment for any
Performance Shares may be made in full in cash or by certified cashier’s check
payable to the order of the Company or, if permitted by the Program
Administrators, by shares of the Company’s Common Stock or by the surrender of
all or part of an Award, or in other property, rights or credits deemed
acceptable by the Program Administrators or, if permitted by the Program
Administrators, by a combination of the foregoing. If any portion of the
purchase price is paid in shares of the Company’s Common Stock, those shares shall
be tendered at their then Fair Market Value as determined by the Program
Administrators in accordance herewith. 
Payment in shares of Common Stock includes the automatic application of
shares of Common Stock received upon the exercise or settlement of Performance
Shares or other option or Award to satisfy the exercise or settlement price.

 

Section 5.               Stock Payments.  The Program Administrators may grant Stock
Payments to a person eligible to receive the same as a bonus or additional
compensation or in lieu of the obligation of the Company or a subsidiary to pay
cash compensation under other compensatory arrangements, with or without the
election of the eligible person, provided that the Plan Participant will be
required to pay an amount equal to the aggregate par value of any newly issued
Stock Payments. A Plan Participant shall have all the voting, dividend,

 

35

 

liquidation and other
rights with respect to shares of Common Stock issued to the Plan Participant as
a Stock Payment upon the Plan Participant becoming holder of record of such
shares of Common Stock; provided, however, the Program Administrators may
impose such restrictions on the assignment or transfer of such shares of Common
Stock as they deem appropriate and as are evidenced in the Stock Rights
Agreement for such Stock Payment.

 

Section 6.               Dividend
Equivalent Rights.  The Program
Administrators may grant Dividend Equivalent Rights in tandem with the grant of
Incentive Option or Nonqualified Option, SARs, Restricted Shares or Performance
Shares that otherwise do not provide for the payment of dividends on the shares
of Common Stock subject to such awards for the period of time to which such
Dividend Equivalent Rights apply, or may grant Dividend Equivalent Rights that
are independent of any other such award. 
A Dividend Equivalent Right granted in tandem with another award may be
evidenced by the agreement for such other award; otherwise, a Dividend Equivalent
Right shall be evidenced by a separate Stock Rights Agreement.  Payment may be made by the Company in cash
or by shares of the Company’s Common Stock or by a combination of the
foregoing, may be immediate or deferred and may be subject to such employment,
performance objectives or other conditions as the Program Administrators may
determine and specify in the Stock Rights Agreement for such Dividend
Equivalent Rights. The total payment attributable to a share of Common Stock
subject to a Dividend Equivalent Right shall not exceed one hundred percent
(100%) of the equivalent dividends payable with respect to an outstanding share
of Common Stock during the term of such Dividend Equivalent Right, taking into
account any assumed investment (including assumed reinvestment in shares of
Common Stock) or interest earnings on the equivalent dividends as determined
under the Stock Rights Agreement in the case of a deferred payment, provided
that such percentage may increase to a maximum of two hundred percent (200%) if
a Dividend Equivalent Right is subject to a Performance Objective.

 

Section 7.               Compliance with
Securities Laws.  Shares shall not
be issued with respect to any option granted under the Stock Rights Plan,
unless the exercise of that option and the issuance and delivery of the shares
pursuant thereto shall comply with all applicable provisions of foreign, state
and federal law, including, without limitation, the Securities Act of 1933, as
amended, and the Exchange Act, and the rules and regulations promulgated
thereunder, and the requirements of any stock exchange upon which the shares
may then be listed, and shall be further subject to the approval of counsel for
the Company with respect to such compliance. 
The Program Administrators may also require an Optionee to furnish
evidence satisfactory to the Company, including a written and signed
representation letter and consent to be bound by any transfer restrictions
imposed by law, legend, condition, or otherwise, that the shares are being
purchased only for investment purposes and without any present intention to
sell or distribute the shares in violation of any state or federal law, rule,
or regulation.  Further, each Optionee
shall consent to the imposition of a legend on the shares of Common Stock subject
to his or her option and the imposition of stop-transfer instructions
restricting their transferability as required by law or by this Section 7.

 

Section 8.               Continued
Employment or Service.  Each
Optionee, if requested by the Program Administrators, must agree in writing as
a condition of receiving his or her option, to remain in the employment of, or
service to, the Company or any of its subsidiaries following the date of the
granting of that option for a period specified by the Program
Administrators.  Nothing in this Stock
Rights Plan in any option granted hereunder shall confer upon any Optionee any
right to continued employment by, or service to, the Company or any of its
subsidiaries, or limit in any way the right of the Company or any subsidiary at
any time to terminate or alter the terms of that employment or service
arrangement.

 

Section 9.               Option Rights
Upon Termination of Employment or Service. 
If an Optionee under this Stock Rights Plan an ceases to be employed by,
or provide services to, the Company or any of its subsidiaries for any reason
other than death or disability, his or her option shall immediately terminate; provided,
however, that the Program Administrators may, in their sole and
absolute discretion, allow the option to be exercised, to the

 

36

 

extent exercisable on the
date of termination of employment or service, at any time within sixty (60)
days after the date of termination of employment or service, unless either the
option or this Stock Rights Plan otherwise provides for earlier termination.

 

Section 10.             Option Rights Upon
Disability.  If an Optionee becomes
disabled within the meaning of Code Section 422 (e) (3) while employed by
the Company or any subsidiary corporation, the Program Administrators, in their
discretion, may allow the option to be exercised, to the extent exercisable on
the date of termination of employment, at any time within one year after the
date of termination of employment due to disability, unless either the option
or the Stock Rights Plan otherwise provides for earlier termination.

 

37Exhibit
10.4

 

OFFICE
LEASE

 

 

FOR

 

SKYVIEW BUSINESS PARK, LLC

a Nevada
Limited Liability Company

 

 

TENANT:

 

International Integrated Incorporated

A
British Virgin Islands Corporation

 

 

TABLE OF
CONTENTS

 

	
  SECTION
  1:

  	
   

  	
  PREMISES

  
	
  1.01

  	
   

  	
  Description

  
	
  1.02

  	
   

  	
  Determination of Square
  Footage

  
	
  1.03

  	
   

  	
  Landlord Reservations

  
	
  1.04

  	
   

  	
  Zoning,
  Permits, etc.

  
	
   

  	
   

  
	
  SECTION 2:

  	
   

  	
  TERM

  
	
  2.01

  	
   

  	
  Commencement Date

  
	
  2.02

  	
   

  	
  Occupancy Date

  
	
  2.03

  	
   

  	
  Acceptance of Premises

  
	
  2.04

  	
   

  	
  Option
  to Renew

  
	
  2.05

  	
   

  	
  Holdover

  
	
   

  	
   

  
	
  SECTION 3:

  	
   

  	
  RENT

  
	
  3.01

  	
   

  	
  Minimum Annual Rent

  
	
  3.02

  	
   

  	
  Minimum Annual Rent
  Increases

  
	
   

  	
   

  	
  (a)

  	
  Cost of Living Increases

  
	
   

  	
   

  	
  (b)

  	
  Fixed Percentage Increases

  
	
  3.03

  	
   

  	
  Index

  
	
  3.04

  	
   

  	
  Partial Months

  
	
  3.05

  	
   

  	
  Rental/CAM Deposit

  
	
  3.06

  	
   

  	
  Obligation to Pay
  Additional Rent

  
	
  3.07

  	
   

  	
  Other Costs

  
	
  3.08

  	
   

  	
  Definitions

  
	
   

  	
   

  	
   

  
	
  SECTION 4:

  	
   

  	
  ADDITIONAL
  RENT

  
	
  4.01

  	
   

  	
  Additional Rent

  
	
   

  	
   

  	
  (a)

  	
  Tenant’s
  Pro-rata Portion of Center’s Operating Cost

  
	
   

  	
   

  	
  (b)

  	
  Center’s Operating
  Cost Defined

  
	
  4.02

  	
   

  	
  Impositions

  
	
  4.03

  	
   

  	
  Scope of Additional Rent

  
	
  4.04

  	
   

  	
  Late Charge

  
	
   

  	
   

  	
   

  
	
  SECTION 5:

  	
   

  	
  SECURITY
  DEPOSIT

  
	
  5.01

  	
   

  	
  Security Deposit

  
	
  5.02

  	
   

  	
  Increases to Security
  Deposit

  
	
  5.03

  	
   

  	
  Landlord’s
  Accounting for Deposits

  
	
  5.04

  	
   

  	
  Not Deductible
  from Rental Obligations

  
	
   

  	
   

  
	
  SECTION 6:

  	
   

  	
  SURRENDER
  OF PREMISES

  
	
  6.01

  	
   

  	
  Tenant’s Removal
  of Tenant’s Property

  
	
  6.02

  	
   

  	
  Landlord’s Notice to Remove

  
	
  6.03

  	
   

  	
  Landlord’s
  Removal of Tenant’s Property

  
	
   

  	
   

  
	
  SECTION 7:

  	
   

  	
  USE
  OF PREMISES

  
	
  7.01

  	
   

  	
  Permitted Use and Trade
  Name

  
	
  7.02

  	
   

  	
  Repair and
  Maintenance Obligations

  
	
  7.03

  	
   

  	
  Trash Removal

  
	
  7.04

  	
   

  	
  Rules and Regulations

  
	
  7.05

  	
   

  	
  Operate in
  Business-Like Manner

  
	
  7.06

  	
   

  	
  Rights of Other
  Tenants in Center

  
	
  7.07

  	
   

  	
  Center Security Services

  
	
  7.08

  	
   

  	
  Compliance with Laws

  
	
   

  	
   

  	
  (a)

  	
  Hazardous Waste

  
	
   

  	
   

  	
  (b)

  	
  Permissible Conditions

  
	
   

  	
   

  	
  (c)

  	
  Indemnification of Landlord

  
	
   

  	
   

  	
  (d)

  	
  Compliance Inspections

  
	
   

  	
   

  
	
  SECTION 8:

  	
   

  	
  PARKING
  AND COMMON AREAS

  
	
  8.01

  	
   

  	
  Nonexclusive
  Right to Parking and Common Areas

  
	
  8.02

  	
   

  	
  Obligation
  to Pay Pro-rata Share of Center’s Operating Cost

  
	
  8.03

  	
   

  	
  Parking Limitations

  
	
   

  	
   

  	
   

  
	
  SECTION 9:

  	
   

  	
  ALTERATIONS
  AND IMPROVEMENTS

  
	
  9.01

  	
   

  	
  Restriction On Alterations

  
	
  9.02

  	
   

  	
  Signage

  
	
   

  	
   

  	
   

  
	
  SECTION 10:

  	
   

  	
  REPAIRS

  
	
  10.01

  	
   

  	
  Repairs and Maintenance

  
	
  10.02

  	
   

  	
  Tenant’s Responsibilities

  
					

 

i

 

	
  SECTION 11:

  	
   

  	
  LANDLORD
  SERVICES

  
	
  11.01

  	
   

  	
   

  	
  Landlord’s Services

  
	
  11.02

  	
   

  	
   

  	
  Notice to Tenant

  
	
   

  	
   

  
	
  SECTION 12:

  	
   

  	
  TAXES

  
	
  12.01

  	
   

  	
   

  	
  Taxes

  
	
  12.02

  	
   

  	
   

  	
  Additional Taxes

  
	
   

  	
   

  
	
  SECTION 13:

  	
   

  	
  UTILITIES

  
	
  13.01

  	
   

  	
   

  	
  Utilities

  
	
  13.02

  	
   

  	
   

  	
  Pro-rata Share

  
	
   

  	
   

  
	
  SECTION 14:

  	
   

  	
  INSURANCE

  
	
  14.01

  	
   

  	
   

  	
  General Obligations

  
	
  14.02

  	
   

  	
   

  	
  All-Risk Casualty Insurance

  
	
  14.03

  	
   

  	
   

  	
  Certificate
  of Insurance/Evidence of Renewal

  
	
  14.04

  	
   

  	
   

  	
  Use to not Increase
  Insurance Risk

  
	
  14.05

  	
   

  	
   

  	
  Recovery Limited to
  Insurance

  
	
  14.06

  	
   

  	
   

  	
  Waiver of Subrogation

  
	
  14.07

  	
   

  	
   

  	
  Plate Glass

  
	
  14.08

  	
   

  	
   

  	
  Indemnification

  
	
  14.09

  	
   

  	
   

  	
  Landlord’s Policy
  Covering Center

  
	
  14.10

  	
   

  	
   

  	
  Landlord’s
  Liability Policy Covering Center

  
	
   

  	
   

  
	
  SECTION 15:

  	
   

  	
  LIENS

  
	
  15.01

  	
   

  	
   

  	
  Tenant shall allow no Liens

  
	
   

  	
   

  	
   

  
	
  SECTION 16:

  	
   

  	
  INDEMNIFICATION

  
	
  16.01

  	
   

  	
   

  	
  Tenant’s Duty to Indemnify

  
	
  16.02

  	
   

  	
   

  	
  Limitation on
  Landlord’s Liability

  
	
  16.03

  	
   

  	
   

  	
  Landlord’s Duty to
  Indemnify

  
	
  16.04

  	
   

  	
   

  	
  Survival Clause

  
	
   

  	
   

  
	
  SECTION 17:

  	
   

  	
  SUBORDINATION;
  ESTOPPEL CERTIFICATE

  
	
  17.01

  	
   

  	
   

  	
  Subordination

  
	
  17.02

  	
   

  	
   

  	
  Estoppel Certificate

  
	
  17.03

  	
   

  	
   

  	
  Attornment

  
	
   

  	
   

  
	
  SECTION 18:

  	
   

  	
  ASSIGNMENT
  AND SUBLETTING

  
	
  18.01

  	
   

  	
   

  	
  Assignment/Subletting
  Not Permitted Without Prior Written Consent

  
	
  18.02

  	
   

  	
   

  	
  Tenant Not Released

  
	
  18.03

  	
   

  	
   

  	
  No
  Merger

  
	
  18.04

  	
   

  	
   

  	
  Review Fees

  
	
  18.05

  	
   

  	
   

  	
  Transfer of Ownership

  
	
  18.06

  	
   

  	
   

  	
  Tenant Not
  Released/Conditions

  
	
   

  	
   

  
	
  SECTION 19:

  	
   

  	
  CONDEMNATION

  
	
  19.01

  	
   

  	
   

  	
  Condemnation

  
	
  19.02

  	
   

  	
   

  	
  Entire Premises

  
	
  19.03

  	
   

  	
   

  	
  Portion of the Premises

  
	
  19.04

  	
   

  	
   

  	
  Following Appropriation

  
	
  19.05

  	
   

  	
   

  	
  Landlord’s Right to
  Terminate

  
	
  19.06

  	
   

  	
   

  	
  Disposition of Awards

  
	
  19.07

  	
   

  	
   

  	
  Temporary Taking

  
	
   

  	
   

  
	
  SECTION 20:

  	
   

  	
  DAMAGE
  OR DESTRUCTION

  
	
  20.01

  	
   

  	
   

  	
  Destruction

  
	
  20.02

  	
   

  	
   

  	
  Repair and Reconstruction

  
	
  20.03

  	
   

  	
   

  	
  Insurance Proceeds

  
	
   

  	
   

  
	
  SECTION 21:

  	
   

  	
  RIGHT
  OF ACCESS

  
	
  21.01

  	
   

  	
   

  	
  Landlord’s Right to Enter

  
	
  21.02

  	
   

  	
   

  	
  Storage of Materials

  
	
  21.03

  	
   

  	
   

  	
  Showing to Re-let

  
	
   

  	
   

  
	
  SECTION 22:

  	
   

  	
  EXPENDITURES
  BY LANDLORD

  
	
  22.01

  	
   

  	
   

  	
  Landlord’s Expenditures

  
	
   

  	
   

  
	
  SECTION 23:

  	
   

  	
  TENANT’S
  DEFAULT; LANDLORD’S REMEDIES

  
	
  23.01

  	
   

  	
  Events of Default

  
	
  23.02

  	
   

  	
   

  	
  Landlord’s Rights

  
	
  23.03

  	
   

  	
   

  	
  Removal of Persons and
  Property

  

 

ii

 

	
  23.04

  	
   

  	
   

  	
  Court Costs and
  Attorneys Fees

  
	
  23.05

  	
   

  	
   

  	
  No
  Waiver

  
	
  23.06

  	
   

  	
   

  	
  Landlord’s Lien

  
	
   

  	
   

  
	
  SECTION 24:

  	
   

  	
  QUIET
  POSSESSION

  
	
  24.01

  	
   

  	
   

  	
  Quiet Possession

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  SECTION 25:

  	
   

  	
  LANDLORD’S
  DEFAULT

  
	
  25.01

  	
   

  	
   

  	
  Landlord’s Breach

  
	
  25.02

  	
   

  	
   

  	
  Limitation of
  Landlord’s Liability

  
	
   

  	
   

  
	
  SECTION 26:

  	
   

  	
  FORCE
  MAJEURE

  
	
  26.01

  	
   

  	
   

  	
  Force Majeure

  
	
   

  	
   

  
	
  SECTION 27:

  	
   

  	
  NOTICES

  
	
  27.01

  	
   

  	
   

  	
  Notices

  
	
  27.02

  	
   

  	
   

  	
  Change of Address

  
	
   

  	
   

  
	
  SECTION 28:

  	
   

  	
  GENERAL
  PROVISIONS

  
	
  28.01

  	
   

  	
   

  	
  Remedies Cumulative

  
	
  28.02

  	
   

  	
   

  	
  Successors

  
	
  28.03

  	
   

  	
   

  	
  Partial Invalidity

  
	
  28.04

  	
   

  	
   

  	
  Time of the Essence

  
	
  28.05

  	
   

  	
   

  	
  Entire Agreement/No
  Parol Evidence

  
	
  28.06

  	
   

  	
   

  	
  No Partnership

  
	
  28.07

  	
   

  	
   

  	
  Brokers

  
	
  28.08

  	
   

  	
   

  	
  Attorney’s Fees and Costs

  
	
  28.09

  	
   

  	
   

  	
  Governing Law

  
	
  28.10

  	
   

  	
   

  	
  Interpretation

  
	
  28.11

  	
   

  	
   

  	
  Tenant’s Consideration

  
	
  28.12

  	
   

  	
   

  	
  Additional Records

  
	
  28.13

  	
   

  	
   

  	
  Recordation

  
	
  28.14

  	
   

  	
   

  	
  Waiver

  
	
  28.15

  	
   

  	
   

  	
  Landlord’s Financing Condition

  
	
  28.16

  	
   

  	
   

  	
  Authority to Execute

  
	
  28.17

  	
   

  	
   

  	
  Landlord’s Reservation
  of Rights

  
	
   

  	
   

  
	
  EXHIBIT
  “A” - Site Plan

  
	
   

  	
   

  	
   

  
	
  EXHIBIT
  “B” - Memorandum of Commencement

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBIT
  “C” - Landlord’s Work Letter

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBIT
  “D” - Tenant Signage Criteria

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBIT
  “E” - Rules and Regulations

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBIT
  “F” - AGENCY DISCLOSURE

  	
   

  
						

 

iii

 

LEASE
AGREEMENT

 

THIS LEASE AGREEMENT (“Lease”) is made and entered
into this 10th day of October , 2002, by and between SKYVIEW BUSINESS PARK,
LLC, a Nevada Limited Liability Company, (the “Landlord”) and International Integrated Incorporated, a
British Virgin Islands Corporation  (the
“Tenant”).

 

	
   

  	
   

  	
  Fundamental
  Lease Provisions

  
	
   

  	
   

  	
   

  
	
  Date of Lease:

  	
   

  	
  October 10, 2002

  
	
   

  	
   

  	
   

  
	
  Landlord:

  	
   

  	
  SKYVIEW BUSINESS PARK, LLC

  
	
   

  	
   

  	
  a Nevada Limited Liability Company

  
	
   

  	
   

  	
   

  
	
  Tenant:

  	
   

  	
  International Integrated
  Incorporated

  
	
   

  	
   

  	
  A British Virgin Islands Corporation

  
	
   

  	
   

  	
   

  
	
  Location of Premises:

  	
   

  	
  4560 South Decatur Boulevard

  
	
   

  	
   

  	
  Las Vegas, Nevada 89103

  
	
   

  	
   

  	
   

  
	
  Size of Leased Space:

  	
   

  	
  6,405.01 +/- Rentable Square Feet

  
	
   

  	
   

  	
  5,360.00+/- Usable Square Feet

  
	
   

  	
   

  	
  Rentable and usable square feet and corresponding
  rental rates could be adjusted per final space plan.

  
	
   

  	
   

  	
   

  
	
  Lease Term:

  	
   

  	
  Five (5) years
  consecutive full lease months (plus a partial lease month, if any, prior to
  the first full lease month).

  
	
   

  	
   

  	
   

  
	
  Minimum Annual Rent:

  	
   

  	
  $1.6411 per
  rentable square foot per month for a total of $126,135.12 per annum, payable in 12 monthly installments
  during the first year.

  
	
   

  	
   

  	
   

  
	
  Term Commencement Date:

  	
   

  	
  The term of this Lease
  shall commence on the date which is the earlier of (a) the date the Premises
  are ready for occupancy as specified in Section 2.02 or (b) the date on which
  Tenant takes possession of or occupies any portion of the Premises for any
  purpose (the “Commencement Date”),
  but in no event shall the Commencement Date be later than January 1, 2003.

  
	
   

  	
   

  	
   

  
	
  Term Expiration Date:

  	
   

  	
  Sixty (60) months
  from the Commencement Date.

  
	
   

  	
   

  	
   

  
	
  Rental Increase:

  	
   

  	
  Increased annually at a fixed rate of four percent
  (4%).

  
	
   

  	
   

  	
   

  
	
  Options to Renew:

  	
   

  	
  Two (2) Five (5) year option(s) as
  defined in Section 2.04.

  
	
   

  	
   

  	
   

  
	
  Security Deposit:

  	
   

  	
  $10,600.00

  
	
   

  	
   

  	
   

  
	
  Landlord Address for Notice:

  	
   

  	
  c/o Investment Equity Builders

  
	
   

  	
   

  	
  4560 S. Decatur Boulevard, Suite 200

  
	
   

  	
   

  	
  Las Vegas, Nevada 89103

  
	
   

  	
   

  	
  702-871-4545

  
	
   

  	
   

  	
  702-367-8126 Fax

  
	
   

  	
   

  	
   

  
	
  Tenant Address for Notice:

  	
   

  	
  International Integrated
  Incorporated

  
	
   

  	
   

  	
  4560 S. Decatur Boulevard, Suite 300

  
	
   

  	
   

  	
  Las Vegas, Nevada 89103

  
	
   

  	
   

  	
  702-731-2519

  
	
   

  	
   

  	
  702-791-5365 Fax

  

 

INITIALS

 

iv

 

LEASE
AGREEMENT

 

THIS LEASE AGREEMENT (Lease) is made and entered into
this 10th day of October,  2002,
by and between SKYVIEW BUSINESS PARK, LLC, a Nevada Limited Liability Company,
(the Landlord) and INTERNATIONAL INTREGRATED INCORPORATION, A BRITISH VIRGIN
ISLANDS CORPORATION, (Tenant).

 

SECTION 1:                           PREMISES

 

1.01                           Description. 
Upon the conditions and covenants set forth herein, Landlord hereby
leases to Tenant, and Tenant hereby leases from Landlord, that unit or space
no. 300  (the “Premises”) in the Sky
View Business Park, located at 4560 South
Decatur Boulevard, Las Vegas, Nevada (the Center), which is
described on Exhibit A-1” attached hereto, and consisting of approximately 6,405.01 +/- rentable square feet and  5,360+/-
usable square feet, which Premises is indicated by cross-hatching on the Site
Plan of the Center attached hereto as Exhibit A-2”.

 

1.02                           Determination of Square Footage.  If demising walls are to be installed or
relocated, then to determine the actual square footage of the Premises,
Landlord shall measure the Premises promptly following the date that the
demising walls are established (sLandlords Final Measurements); otherwise the
aforesaid square footage is Landlords Final Measurement.  Landlords Final Measurement shall be binding
upon Tenant unless Tenant notifies Landlord of any actual error therein within
ten (10) calendar days after written notice thereof.  Interior spaces shall be measured from centerline to centerline
of party walls, exterior spaces shall be measured from center line of party
walls to outside face of exterior walls; depth shall be measured from outside
face of exterior walls.  There shall be
no reduction of square footage by reason of any columns or architectural
elements within the Premises.

 

1.03                           Landlord Reservations.  Landlord reserves to itself the exclusive
use of the roof, exterior walls and the area above and below the Premises
(other than roll-up doors and exterior doorways), together with the right to
install, maintain, use, repair and replace pipes, ducts, conduits, wires and
structural elements now or in the future, leading through the Premises and
which serve other parts of the Center.

 

1.04                           Zoning, Permits, Views, etc.  The zoning for the Center is C-1. 
Tenant shall be responsible, at its sole cost and expense for obtaining
all permits and licenses required by law and for compliance with all
governmental rules, codes and regulations, including but not limited to,
business licenses and fire code regulations to conduct the business
contemplated by Tenant.  Landlord does
not warranty or guaranty that the view from the Premises shall remain the same
during the term or subsequent terms, as may from time to time be executed.

 

SECTION 2:                           TERM

 

2.01                           Commencement Date. 
The term of this Lease shall commence on the date which is the earlier
of (a) the date the Premises are ready for occupancy as specified in Section
2.02 or (b) the date on which Tenant takes possession of or occupies any
portion of the Premises for any purpose (the “Commencement Date”), but in no event shall the
Commencement Date be later than January 1, 2003, and shall end Sixty (60) full
lease months from the Commencement Date, unless sooner terminated pursuant
hereto (the “Term”).  Promptly following the Commencement Date,
Landlord and Tenant shall confirm the Commencement Date and the expiration date
by executing and delivering a Memorandum of Commencement Date (“Memorandum”) in the form attached
hereto as Exhibit “B.” This Lease shall not be void, voidable or subject to
termination, nor shall Landlord be liable to Tenant for any loss or damage,
resulting from Landlord’s inability to deliver the Premises to Tenant on the
date specified in Landlord’s notice given pursuant to Section 2.02, but no rent
hereunder shall be payable hereunder with respect to any delay in delivery of
the Premises which is caused solely by Landlord.

 

2.02                           Occupancy Date. 
Landlord shall prepare the Premises for occupancy by Tenant in
accordance with the provisions of Landlord’s Work Letter, attached hereto as
Exhibit “C.” Landlord shall deliver to Tenant a written notice stating the date
on which the Premises will be ready for occupancy, (the “Occupancy Date”), such notice to be
given not less than five (5) days prior to the Occupancy Date indicated in the
notice.  The Occupancy Date for the
Premises shall not occur until each of the following conditions have been
satisfied: (a) the Building Systems are operational to the extent necessary to
service the Premises; (b) Landlord has provided reasonable access to the
Premises by Tenant, its agents, employees, licensees and invitees so that the
Premises may be used without substantial interference; (c) Landlord has
provided Tenant the number of parking spaces set forth in Article 6; (d)
Landlord has substantially completed the Work required to be performed by
Landlord in accordance with Landlord’s Work Letter other than details of
construction, decoration and minor mechanical adjustments which do not
materially interfere with Tenant’s use of the Premises; and (e) Landlord shall
have (i) obtained a certificate of occupancy for the Building, or a temporary
certificate of occupancy for the portion of the Building which includes all the
Premises, or (ii) completed all Base Building Work and all Tenant Work (as
defined in Landlord’s Work Letter) necessary to entitle Landlord to the
issuance of such a certificate of occupancy or such a temporary certificate of
occupancy.  Failure of Landlord to
complete work on the Building other than as described above shall not delay the
Commencement Date.  Notwithstanding
anything to the contrary set forth above, if the Occupancy Date is delayed as a
result of any act or omission of any kind by Tenant, its agents or employees,
the Commencement Date (and the commencement of Tenant’s obligation to pay rent)
shall be accelerated by the number of days of such delay and the Commencement
Date shall be deemed to occur on the date the Premises would have been ready
for occupancy without such delay.

 

1

 

2.03                           Acceptance of Premises.  By entering into possession of
the Premises or any part thereof and except for such matters as Tenant shall
specify to Landlord in writing within ten (10) days thereafter, Tenant shall be
conclusively deemed to have accepted the Premises and to have agreed that
Landlord has performed all of its obligations hereunder with respect to the
Premises and that the Premises are in satisfactory condition and in full
compliance with the requirements of this Lease as of the date of such
possession, except for the minor details of construction, decoration and mechanical
adjustments referred to in Section 2.02 above. 
Tenant acknowledges that neither Landlord nor any agent of Landlord has
made any representation or warranty, except as otherwise expressly provided in
this Lease, with respect to the Premises, the Building or any other portion of
the Center, including without limitation, any representation or warranty with
respect to the suitability or fitness of the Premises, the Building or any
other portion of the Center for the conduct of Tenant’s business.

 

2.04                           Option to
Renew.  Provided Tenant is in compliance with each
and every covenant, term, condition and rental obligation on its part to be
performed at the time of exercise or at any time thereafter, Tenant shall have
the option to extend this Lease for two (2)
extension term(s) of five (5)  years each, commencing on the
expiration date hereof (each, an “Option Term”).  Said option shall be exercised by giving
Landlord notice in writing of such election, at least six (6) months, but not
more than nine (9) months prior to the expiration date of the Lease.  Such extension term shall be on the same
covenants, terms and conditions as provided herein for the original term,
except that the rental provided in Section 4 of the Lease shall be the higher
of:  (1) the then prevailing market
rental rate or; (2) the rental payable during the final month of the expiring
term or extension term, whichever the case may be.

 

It is understood that the rental rate to be paid at any time during an
Option Term shall in no event be less than the amount Tenant is obligated to
pay during the final month of the expiring Term or expiring Option Term,
whichever the case may be.  If Tenant
and Landlord are unable to agree on the rental rate for the extension term
within three (3) months after Tenant’s notice of election to extend the Term of
the Lease pursuant to this Option, the right to extend hereunder shall
terminate and the Lease shall expire at the end of the then current Term.  Any other provision hereof to the contrary
notwithstanding, Tenant shall only have the right to extend the Lease pursuant
to this Option for a total period of six (6) years.

 

2.05                           Holdover. 
If Tenant holds possession of the Premises with the consent of Landlord
after the expiration of the Term, such holding over shall create a tenancy from
month to month only, upon the same terms and conditions as are herein set
forth, except that Minimum Monthly Rent shall be one hundred fifty percent
(150%) of the Minimum Monthly Rent as of the expiration hereof.  Additionally, the acceptance by Landlord of
rent after the expiration of the Lease shall not constitute a consent to hold
over or result in a renewal hereof.  The
foregoing provisions of this Section are in addition to, and do not affect,
Landlords right to re-entry or any other rights of Landlord hereunder or at law
or in equity.

 

SECTION 3:                           RENT

 

3.01                           Minimum Annual Rent.  For the period beginning on the Rent
Commencement Date and continuing until adjusted pursuant to Section 3.02,
Tenant shall pay Landlord, in advance without deduction or setoff for any
reason, minimum annual rent for the Premises the amount of One Hundred Twenty
Six Thousand One Hundred Thirty Five and 12/100 Dollars ($126,135.12).  The Minimum Annual Rent shall be payable in twelve (12) equal
monthly installments of Ten Thousand Five Hundred Eleven and 12/00 Dollars ($10,511.26) per month (Minimum Monthly
Rent), each installment being payable in advance on the first day of each
calendar month

3.02                           Minimum Annual Rent Increases.   On each Adjustment Date (defined below),
the Minimum Annual Rent due hereunder shall increase as set forth under
Subsection (a) or (b) below.  In the
event the parties neglect to designate a Subsection, Subsection (a) shall be
deemed selected.

 

[ THE PARTIES SELECT:     OR SUBSECTION (b)
                   ,
BY INITIALING THE SELECTED INCREASE METHOD.]

 

(b)                                 Fixed Percentage Increases.  Minimum Annual Rent shall be increased at
the rate of Four Percent (4%) on
each Adjustment Date.

 

2

 

3.04                           Partial Months. 
If the Term includes a fractional month, for that fractional month
Tenant shall pay as Minimum Monthly Rent that proportion of the Minimum Monthly
Rent due which the number of days in said fractional month bear to the total number
of days in said month.

 

3.05                           Rental/Operating Cost Deposit.  Concurrently with the execution and delivery
hereof, Tenant has the sum of $12,368.71,
representing Minimum Monthly Rent, plus Tenants estimated pro rata portion of
the Centers Operating Cost, for the first month of the Term, and pending the
Occupancy Date, same shall be held by Landlord in the same manner as the
Security Deposit.

 

3.06                           Obligation to Pay Additional Rent.  Regardless of whether the Occupancy Date
precedes the Commencement Date, Tenants obligation to pay Additional Rent (as
defined in Section 4 below) shall commence upon the Occupancy Date.

 

3.07                           Other Costs. 
Tenant shall also pay, in addition to the Minimum Annual Rent, all other
costs, as Additional Rent, as more specifically set forth below.

 

3.08                           Definitions. 
As used herein, the following terms shall have the following meanings:

(a)                                  sLease
Year shall mean a twelve (12) month calendar year, except that in the event the
Occupancy Date occurs other than January 1, the first Lease Year hereunder
shall be that fractional part of the calendar year from the Occupancy Date to
December 31 of the same year and the final Lease Year shall be that fractional
part of the calendar year from January 1 to the expiration date.

 

(b)                                 Rental
Year shall mean a twelve (12) calendar month year beginning on the Rent
Commencement Date and ending twelve (12) calendar months thereafter and each
full twelve (12) calendar months respectively thereafter.

 

(c)                                  Tenants
pro-rata portion or share shall mean a percent based upon a fraction the
numerator of which is the total number of rentable square feet of the Premises and
the denominator of which is the total number of rentable square feet from
time-to-time then constructed within the Center and which are occupiable.

 

SECTION 4:                           ADDITIONAL RENT

 

4.01                           Additional Rent.  This Lease is what is commonly called a sTriple Net or ssNet,
Net, Net Leases, which means that Landlord shall receive the Minimum Monthly
Rent free and clear of any and all other impositions, taxes, liens, charges or
expenses of any nature whatsoever in connection with the ownership and
operation of the Premises.  In addition
to the Minimum Monthly Rent, Tenant shall pay to the parties respectfully
entitled thereto all costs, and any other charges, costs or expenses which
arise or may be contemplated under any provisions of this Lease during the term
hereof.  Such other costs and charges
shall include, but are not limited to: property taxes, liability insurance,
water, sewer fees, electricity, landscape and building maintenance, etc.  All of such charges, costs and expenses
shall constitute Additional Rent, and upon the failure of Tenant to pay any of
such costs, charges or expenses, Landlord shall have the same rights and
remedies as otherwise provided herein for the failure of Tenant to pay Minimum
Monthly Rent.  In addition to the
Minimum Monthly Rent, Tenant shall pay Landlord, at the time and the manner set
forth, the following as Additional Rent:

 

(a)                                  Tenant’s Pro-rata Portion of Center’s
Operating Cost.  Tenant’s
pro-rata portion of the Center’s Operating Cost,  which shall be estimated annually on a Lease Year basis by
Landlord.  Tenants pro-rata portion of
the Centers Operating Cost for the first Lease Year shall be $22,289.40 
Tenant shall be notified in writing of Landlord’s “good-faith” estimate
prior to the last day of each Lease Year. 
Tenant shall commence payment of one twelfth (1/12) of such estimated
annual costs without further demand or any deduction or setoff, in advance, on
the first day of each subsequent calendar month during such ensuing Lease Year,
which amount shall be $1,857.45.  Within a reasonable period of time following
the end of each Lease Year, Landlord shall ascertain the actual Center’s
Operating Costs for the previous Lease Year and will notify Tenant in writing
of such actual Center’s Operating Costs. 
After determining such Center’s Operating Cost for the previous Lease
Year, Landlord shall then determine if Tenant owes any additional sums thereof,
or if Tenant has paid Landlord more than its pro-rata share thereof.  Tenant shall pay to Landlord on demand, the
amount, if any, equal to the difference between the actual payments made by
Tenant and the actual Center’s Operating Cost as determined by Landlord within
thirty (30) days of receiving written notice from Landlord and regarding
Tenant’s underpayment even though same may be received after the expiration or
termination of this Lease.  If any
excess payment(s) has been made by Tenant, then same shall be held by Landlord
and applied to Tenant’s subsequent payment(s) of the Center’s Operating Cost,
as Additional Rent.  Tenant shall not be
entitled to receive interest on any Additional Rent paid hereunder.

 

(b)                                 Center’s Operating Cost Defined.  The term “Center’s Operating Cost” shall
mean the total cost and expense incurred in managing, operating, equipping,
lighting, repairing, replacing and maintaining the Center in such manner as
Landlord, in its sole discretion, deems appropriate, including, without
limitation, all Impositions (as that term is defined below), the repair and
maintenance to the roof and the exterior walls of the buildings in the Center,
periodic painting of the buildings in the Center, landscaping services, HVAC
maintenance contracts and normal maintenance of the HVAC unless the HVAC is
separately maintained by Tenant, sweeping, maintenance services repairs to and
replacement of asphalt paving, bumpers, striping, light

 

3

 

bulbs, light standards, monument and directional signs and lighting
systems, perimeter walls, retaining walls, sidewalks, planters landscaping and
sprinkler system in planting areas, water, electrical and other utility
services thereto, removal of trash, rubbish and other refuse from the Center,
cleaning of and replacement of signs of the Center, including revamping and
repairs made as required, maintenance and repair of all of the Common Areas,
including the lobby areas, elevators, stairways, common hallways and Common
Restrooms, liability and other insurance, the establishment of reasonable
reserves for replacements and/or repairs of Common Area improvements, equipment
and supplies, employment of such personnel as Landlord may deem reasonably
necessary, and an administrative fee not to exceed ten percent (10%) of the
total amount of the Center’s Operating Cost, which fees shall be payable to Landlord
or to any other entity which is managing or administrating the Center.

 

4.02                           Impositions. 
Monthly, in advance, in addition to all other rental amounts specified
herein, as further Additional Rent, Tenant shall pay Tenant’s pro-rata portion
of Impositions, as herein defined.  The
amounts due hereunder shall be estimated on a Lease Year basis in advance by
Landlord and shall be paid in the same manner as specified in Section 4.01(a)
for payment of the Tenant’s portion of the Center’s Operating Cost.  For the purpose of this Lease, “Imposition”
means:

 

(a)                                  Any
real estate taxes, fees, assessments or other charges assessed against the
Center or any improvements thereon.

 

(b)                                 All
personal property taxes on personal property used in connection with the Center
and related structures other than taxes payable by Tenant under Section 12
hereof and taxes of the same kind as those described in said Section 12 payable
by other tenants in the Center pursuant to corresponding provisions of their
leases.

 

(c)                                  Any
and all taxes, assessments, license fees, and public charges levied, assessed,
or imposed and which become payable during the term hereof upon all leasehold
improvements, over and above the building shell, whether installed by Landlord
or Tenant.

 

(d)                                 Any
and all environmental levies or charges now in force affecting the Center or
any portion thereof or which may hereafter become effective, including, but not
limited to, parking taxes, levies, or charges, employer parking regulations,
and any other parking or vehicular regulations, levies, or charges imposed by
any municipal, state or federal agency or authority.

 

(e)                                  Any
other taxes levied or assessed in addition to, as a replacement, alternative,
or substitute for, in lieu of such real or personal property taxes.

 

(f)                                    Any
and all fees paid by Landlord in its opposition to any tax assessments, but
only to the maximum amount of one-half (s) of the taxes that would have been
otherwise payable if Landlord had not opposed the original tax assessment.

 

4.03                           Scope of Additional Rent.  Tenant agrees that all monies required to be
paid by Tenant pursuant to this Lease, except for the Minimum Monthly Rent, are
hereby exclusively deemed to be “Additional Rent.”

 

4.04                           Late Charge. 
If Tenant fails to pay, within five (5) days after the same is due and
payable, any Minimum Monthly Rent, Additional Rent or any other amount or
charge to be paid as Additional Rent hereunder, such unpaid amount shall be
subject to a late charge equal to fifteen percent (15%) of such unpaid amount.  In addition, any such unpaid amount shall
bear interest from the thirtieth (30th) day after the due date thereof to the
date of payment at the rate of eighteen percent (18%) per annum.

 

SECTION 5:                           SECURITY DEPOSIT

 

5.01                           Security Deposit.  Concurrently with the execution hereof, Tenant has deposited with
Landlord the sum of Ten Thousand Six Hundred Dollars and no/100($10,600.00), receipt of which is hereby
acknowledged by Landlord (the Deposit). 
Landlord shall hold the Deposit as security for the faithful performance
by Tenant of all the terms, covenants and conditions of this Lease, including
the timely vacating of the Premises by Tenant. 
If Tenant defaults with respect to any provision hereof, Landlord may,
but shall not be required to, use or retain all or any part of the Deposit for
the payment of any rent or other monies due Landlord, to clean the Premises or
to compensate Landlord for any other loss or damage to repair damages to the
Premises, which Landlord may suffer by reason of Tenants default.  If any portion of the Deposit is so used or
applied, Tenant shall, within five (5) days after written demand therefor,
deposit cash with Landlord in an amount sufficient to restore the Deposit to
its original amount.

 

5.02                           Increases to Security Deposit.  To the extent that either the Minimum
Monthly Rent or any Additional Rent as defined herein increases, Tenant shall
deposit such sum with Landlord such that the Deposit shall equal one months
Minimum Monthly Rent plus Tenants estimated (or actual if available) pro-rata
portion of the Centers Operating Cost.

 

5.03                           Landlord’s Accounting for Deposits.  Landlord shall not be required to keep the
Deposit separate from its general funds, and Tenant shall not be entitled to
interest on the Deposit.  Should Tenant comply
with all of the terms, covenants and conditions herein and promptly pay all the
rent and all other sums payable by Tenant to Landlord hereunder as the same
fall due, then the Deposit shall be returned to Tenant thirty (30) days after
the end of the Term, or after payment of the last payment due from the Tenant
to Landlord,

 

4

 

whichever occurs last.  In the
event of sale or transfer of the Center or of any portion thereof containing
the Premises, if Landlord transfers the Deposit to the vendee or transferee for
the benefit of the Tenant, or if such vendee or transferee assumes liability
with respect to the Deposit, then Landlord shall be released by Tenant from all
liability for the return of the Deposit, and Tenant agrees to look solely to
the vendee or transferee for the return of the Deposit.  Tenant agrees that this Section 5 shall
apply to every transfer or assignment to a new Landlord.

 

5.04                           Not Deductible from Rental
Obligations.  Tenant may not deduct
the Deposit from its Minimum Monthly Rent, Additional Rent, or from other
payments to Landlord hereunder and Landlordss right to possession of the
Premises or to take appropriate action for nonpayment of any other reason shall
not be affected by the fact that Landlord holds the Deposit and does not use,
apply or retain same as set forth herein.

 

SECTION 6:                           SURRENDER OF PREMISES

 

6.01                           Tenant’s Removal of Tenant’s Property.  Upon the expiration or sooner termination of
the Term, if Tenant has fully and faithfully performed all of the terms,
conditions and covenants hereof to be performed by Tenant, but not otherwise,
Tenant shall, at its sole cost and expense, remove all personal property and
trade fixtures which Tenant has installed or placed in or on the Premises (all
of which are hereinafter referred to as Tenants Property).  Tenant shall repair all damage resulting
from such removal and Tenant shall thereupon surrender the Premises in the same
condition as on the Occupancy Date, reasonable wear and tear excepted.

 

6.02                           Landlord’s Notice to Remove.  If Tenant has not fully and faithfully
performed all of the terms, conditions and covenants of this Lease to be
performed by Tenant, Tenant shall nevertheless remove Tenants Property from the
Premises in the manner aforesaid within fifteen (15) days after receipt of
written direction to do so from Landlord.

 

6.03                           Landlord’s Removal of Tenant’s
Property.  In the event Tenant
fails to remove any of Tenants Property as provided herein, Landlord may, but
is not obligated to, at Tenants expense, remove all of such Tenants Property
not so removed and repair all damage to the Premises resulting from such
removal, and Landlord shall have no responsibility to Tenant for any loss or
damage to Tenants Property caused by or resulting from such removal or
otherwise.  If the Premises is not
surrendered at the end of the Term, Tenant shall indemnify Landlord against all
loss or liability resulting from delay by Tenant in so surrendering the Premises
including, without limitation, any claims made by any succeeding Tenant founded
on such delay.

 

SECTION 7:                           USE OF PREMISES

 

7.01                           Permitted Use and Trade Name.  The Premises is leased to Tenant solely for
general office use for an Executive Management Office.  Tenant shall not use or suffer to be used
the Premises, or any portion thereof, for any other purpose or purposes
whatsoever, without Landlords prior written consent.  Should Tenants use change the occupancy rating of the Center,
then Tenant, at its sole cost and expense, shall be responsible to retrofit the
Premises to comply with the occupancy rating. 
It is Tenants responsibility to ensure that its proposed use for the
Premises is legally permissible.  Tenant
shall conduct business under the trade name of INTERNATIONAL INTEGRATED INCORPORATED OR ANY OTHER SUCCESSOR RESULTING
FROM MERGER, ACQUISTIONS, ETC, and no other without the prior
written consent of Landlord.

 

7.02                           Repair and Maintenance Obligations.  Tenant shall keep and maintain, at Tenants
sole cost and expense, in good order, condition and repair (including any such
replacement and restoration as is required for that purpose) the Premises and
every part thereof and any and all appurtenances thereto wherever located,
including, but without limitation, the exterior and interior portion of all
doors, door checks, windows, plate glass, Tenant signage, all plumbing and
sewage facilities within the Premises including free flow up to the main sewer
line, fixtures, heating and air conditioning and electrical systems (whether or
not located in the Premises), sprinkler system, walls, floors and ceilings, and
any work performed by or on behalf of Tenant hereunder.  Tenant shall also keep and maintain in good
order, condition and repair (including any such replacement and restoration as
is required for that purpose) any special equipment, fixtures or facilities
other than the usual and ordinary plumbing and utility facilities, which
special facilities shall include, but not be limited to, grease traps located
outside the Premises.  Landlord agrees
to assign to Tenant any warranties Landlord may have pertaining to those parts
of the Premises Tenant is responsible for maintaining hereunder.

 

7.03                           Trash Removal. 
Tenant shall store all trash and garbage in metal containers located
where designated by Landlord so as not to be visible or create a nuisance to
customers and business invitees in the Center, and so as not to create or
permit any health or fire hazard. 
Landlord shall arrange for the regular removal thereof.  If Tenant requires more frequent refuse
removal or larger refuse facilities over that generally provided by Landlord,
Tenant shall pay for same.

 

7.04                           Rules and Regulations.  Tenant hereby covenants and agrees that it,
its agents, employees, servants, contractors, subtenants and licensees shall
abide by the Rules and Regulations attached hereto as Exhibit E and
incorporated herein by reference, and such additional rules and regulations
hereafter adopted, and amendments and modifications of any of the foregoing, as
Landlord may, from time to time, adopt for the safety, care and cleanliness of
the Premises or the Center, and for the preservation of good order thereon and
therein.

 

7.05                           Operate in Business-Like Manner.  Tenant shall operate the Premises during the
entire Term with sound business practice, due diligence and efficiency.  Tenant shall provide, install and at all
times

 

5

 

maintain in the Premises all suitable furniture, fixtures, equipment
and other personal property necessary for the conduct of Tenants business
therein in a businesslike manner.

 

7.06                           Rights of Other Tenants in Center.  Tenant shall not do, permit or suffer
anything to be done, or kept upon the Premises which will obstruct or interfere
with the rights of other tenants, Landlord or the patrons and customers of any
of them, or which will annoy any of them or their patrons by reason of
unreasonable noise or otherwise, nor will Tenant commit or permit any nuisance
on the Premises or commit or suffer waste or any illegal act to be committed
thereon.

 

7.07                           Center Security Services.  Tenant acknowledges and agrees that Landlord
may, but will not  be required to, adopt
and provide security services for the Center from time to time.  However, Landlord will not  be required to provide any such services for
the Center, and any security services that are voluntarily undertaken by
Landlord may be changed or discontinued from time to time in Landlords sole and
absolute discretion, without liability to Tenant, its employees, agents,
customer and invitees.  Tenant waives
any claims it may have against Landlord arising out of any security services
provided by Landlord, or the inadequacy or absence thereof, specifically
including Landlord=s negligence with respect to the providing or failure to
provide such services.  Tenant assumes
the total and sole responsibility for pursuing any civil or criminal remedies
against any other person.  Landlord
shall supply a 24-hour key-card security access system at the entrance to the
building.  Tenant will be given access
cards upon occupancy of the Premises. 
Tenant shall be solely responsible for the replacement cost of any lost
or stolen access cards.  Replacement
cards shall be at a cost of $10.00 per card.   
Upon termination of Lease, Tenant shall return all access cards.

 

7.08                           Compliance with Laws.  Tenant shall at its sole cost and expense,
comply with all federal, state, city and municipal statutes, ordinances, rules,
and regulations in force during the Term and affecting the Center, the Premises
or Tenant’s use thereof.  Further,
Tenant shall indemnify and hold Landlord harmless from and against any penalty,
damage or charges imposed for any violation of any requirement by Tenant, its
assignees or agents.

 

(a)                                  Hazardous Waste.  Tenant shall not use the Premises for the generation, storage,
manufacture, production, releasing, discharge, or disposal of any hazardous
substance (defined below) or allow or suffer any other entity or person to do
so.  “Hazardous Substance” shall mean
any flammable or related material and any other substance or material defined
or designated as a hazardous or toxic substance, material or waste by a
governmental law, order, regulation or ordinance presently in effect or as
amended or promulgated in the future and shall include, without limitation:

 

(i)                                  Those
substances included within the definitions of “hazardous substances,”
“hazardous materials,” “toxic substances” or “solid waste” in CERCLA, RCRA, the
Hazardous Materials Transportation Act, 40 U.S.C. Sections 1801 et seq.,
the Clean Water Act, 33 U.S.C. 2601 et seq., the Clean Air Act, 42
U.S.C. 7401 et seq., the Toxic Substance Control Act, 15 U.S.C. 2601 et
seq., and the Safe Drinking Water Act, 42 U.S.C. 300f through 300j, and in
the regulations promulgated pursuant to said laws;

 

(ii)                              Those
substances listed in the United States Department of Transportation Table (49
CFR 172.101 and amendments thereto) or by the Environmental Protection Agency
(or any successor agency) as hazardous substances (40 CFR Part 302 and
amendments thereto);

 

(iii)                          Such
other substances, materials and wastes which are or become regulated under
applicable local, state or federal law, or the United States Government, or
which are classified as hazardous or toxic under federal, state or local laws
or regulations; and

 

(iv)                            Any
material, waste or substance which is (A) petroleum, (B) asbestos, (C)
polychlorinated biphenyls or (D) designated as a “hazardous substance” pursuant
to Section 311 or the Clean Water Act, 33 U.S.C. Sections 1251 et seq.
(33 U.S.C. 1321) or listed pursuant to Section 307 of the Clean Water Act (33
U.S.C. 1317).

 

(b)                                 Permissible Conditions.  The foregoing notwithstanding, Tenant shall
be entitled to use and maintain such limited quantities of materials that may
otherwise be defined as “hazardous substances,” “hazardous materials,” “toxic
substances,” or “solid waste” as used in the ordinary course of Tenant’s
business; provided, that such “materials” are properly maintained, stored,
disposed of, Tenant complies with all laws, ordinances, rules and regulations
applicable thereto and Tenant bears all responsibility and liability therefor.

 

(c)                                  Indemnification of Landlord.  Tenant shall protect, indemnify and hold
harmless Landlord, its partners, directors, officers, employees, agents,
successors and assigns, the Center and Landlord’s management agent for the
Center from and against any and all claims losses, damages, costs, expenses,
liabilities, fines, penalties, charges, administrative and judicial proceedings
and orders, judgments, remedial action requirements, enforcement actions of any
kind (including, without limitations, attorneys’ fees and costs at trial and on
appeal) directly or indirectly arising out of or attributable to, in whole or
in part, the breach of any of the covenants, representations and warranties of
this Section 7.08, or the use, generation, manufacture, production, storage,
release, threatened release, discharge, disposal, or presence of Hazardous
Substance on, under, from or about the Premises.  The foregoing indemnity shall further apply to any residual
contamination on, under, from or about the Premises, the Center, or affecting
any natural resources arising in connection with the use, generation, manufacturing,
production, handling, storage, transport, discharge or disposal of any such
Hazardous Substance, and irrespective of whether any of such activities were or
will be undertaken in accordance with environmental laws or other applicable
laws, regulations, codes and ordinances.

 

(d)                                 Compliance Inspections.  Upon notification of Tenant by Landlord,
Landlord reserves the right to request appropriate governmental officials to
inspect the Premises, from time to time, in order to determine Tenant’s
compliance herewith.

 

6

 

SECTION 8:                           PARKING AND COMMON AREAS

 

8.01                           Nonexclusive Right to Parking and
Common Areas.  Tenant, its
agents, employees, contractors, subtenants, customers and business invitees
shall have the nonexclusive right, in common with Landlord and all others to
whom Landlord has or may hereafter grant rights, to use such Common Areas of
the Center (including, but not limited to, the parking lot(s), walkways,
corridors, halls, passageways and ramps, sidewalks, access roads, landscape and
planted areas, conference facilities, public rest rooms and other public
facilities, if any) as designated from time to time by Landlord in its sole
discretion (collectively “Common Areas”), subject to such rules and regulations
as Landlord may from time to time impose. 
Landlord shall operate, manage, equip, light, repair and maintain the
Common Areas for their intended purposes, as Landlord shall determine.  Landlord may do such other acts in and to
the Common Areas as in its sole judgment may be desirable.  All Common Areas shall be subject to the
exclusive control and management of Landlord or its agents.  Tenant shall not at any time interfere with
the rights of Landlord, other tenants, its and their agents, employees,
contractors, subtenants, licensees, customers and business invitees to use any
part of the parking lot or Common Areas. 
In no event shall Tenant have the right to sell or solicit in any manner
in any of the Common Areas without Landlord’s prior written consent.  Landlord shall not be subject to any
liability, nor shall Tenant be entitled to any compensation, or reduction or
abatement of rent, by reason of any alteration or diminution of the Common
Areas, and no such alteration or diminution of the Common Areas, shall be
deemed constructive or actual eviction.

 

8.02                           Obligation to Pay Pro-rata Share of
Center’s Operating Cost. 
Notwithstanding the foregoing, Tenant shall be obligated to pay its
pro-rata share of the Center’s Operating Cost as set forth in Section 3 above.

 

8.03                           Parking Limitations.  Tenant and its employees shall park their
cars only in those portions of the parking areas, if any, designated for that
purpose by Landlord.  Tenant shall
furnish Landlord with its and its employees automobile license numbers within
fifteen (15) days after the Occupancy Date and Tenant shall thereafter notify
Landlord of any change within five (5) days after such change occurs.  Tenant hereby authorizes Landlord to tow away
from the Center at Tenant’s expense any improperly parked car or cars belonging
to Tenant or Tenant’s employees and/or to attach violation stickers or notices
to such cars.  Landlord may assign
covered parking and charge fees for same. 
Landlord shall allow Tenant the exclusive use of seven (7) covered parking spaces located on
the south side of the building for the term of the Lease at rate of Forty-five
and no/100 Dollars ($45.00) per space per month, to be paid as Additional Rent.

 

SECTION 9:                           ALTERATIONS AND
IMPROVEMENTS

 

9.01                           Restriction on Alterations.  Tenant may make no alteration,
repairs, additions or improvements in, to or about the Premises (collectively,
“Tenant Alterations”),
without the prior written consent of Landlord, and Landlord may impose as a
condition to such consent such requirements as Landlord, in its sole
discretion, may deem necessary or desirable, including without limitation, (a)
the right to approve the plans and specifications for any work, (b) the right
to require insurance satisfactory to Landlord, (c) the right to require
security for the full payment for any work, (d) requirements as to the manner
in which or the time or times at which work may be performed and (e) the right
to approve the contractor or contractors to perform Tenant Alterations.  All Tenant Alterations shall be compatible
with the Building and completed in accordance with Landlord’s requirements and
all applicable rules, regulations and requirements of governmental authorities
and insurance carriers.  Tenant shall
pay to Landlord Landlord’s reasonable charges for reviewing and inspecting all
Tenant Alterations to assure full compliance with all of Landlord’s
requirements.  Landlord does not
expressly or implicitly covenant or warrant that any plans or specifications
submitted by Tenant are safe or that the same comply with any applicable laws,
ordinances, codes, rules or regulations. 
Further, Tenant shall indemnify, protect, defend and hold Landlord
harmless from any loss, cost or expense, including attorneys’ fees and costs,
incurred by Landlord as a result of any defects in design, materials or
workmanship resulting from Tenant Alterations, except to the extent such
defects are caused by Landlord, its agents, servants or employees.  If requested by Landlord, Tenant shall
provide Landlord with copies of all contracts, receipts, paid vouchers, and any
other documentation in connection with the construction of such Tenant
Alterations.  Tenant shall promptly pay
all costs incurred in connection with all Tenant Alterations and shall not
permit the filing of any mechanic’s lien or other lien in connection with any
Tenant Alterations.  If a mechanic’s
lien or other lien is filed against the Building or the Project, Tenant shall
discharge or cause to be discharged (by bond or otherwise) such lien within ten
(10) days after Tenant receives notice of the filing thereof and shall not
allow any such lien to be foreclosed upon. 
If a mechanic’s lien or other lien is filed against the Building or the
Project and Tenant fails to timely discharge such lien, Landlord may, without
waiving its rights and remedies based on such breach of Tenant and without
releasing Tenant from any of its obligations, cause such liens to be released
by any means it shall deem proper, including payment in satisfaction of the
claim giving rise to such lien.  Tenant
shall pay to Landlord within thirty (30) days following notice by Landlord, any
sum paid by Landlord to remove such liens, together with interest at Landlord’s
cost of money from the date of such payment by Landlord.  Any increase in any tax, assessment or
charge levied or assessed as a result of any Tenant Alterations shall be
payable by Tenant in accordance with Section 12 hereof.  Tenant shall be responsible for paying the
general contractor’s overheard and fee in connection with the work performed
pursuant to this Section 9.

 

7

 

9.02                           Signage.  All
signs shall be designed, constructed and installed in accordance with Exhibit
attached hereto and incorporated by this reference herein or such uniform sign
criteria as may be promulgated by Landlord in lieu thereof.  All such signage shall be installed by the
Commencement Date.  Landlord shall have
final approval of any and all signs to be located on or about the Premises and
the Center.  Tenant shall submit working
drawings to Landlord for approval. 
Landlord shall, in writing, either accept, reject or modify Tenants sign
proposal within seven (7) business days after receipt.  Failure of Landlord to notify Tenant within
the seven (7) day period shall be deemed a rejection of the proposed sign.  Landlord agrees that the approved sign shall
become a portion of this Agreement. 
Tenant may erect identification signs only on the entrance door to the
Premises in the spaces so designated by Landlord in the sign criteria set forth
in Exhibit “D” hereto and made a part hereof by reference and which may be
amended or modified by Landlord from time to time.

 

SECTION 10:  REPAIRS

 

10.01                     Repairs and Maintenance.  Landlord shall maintain only the roof,
foundation and the structural soundness of the exterior walls of the building
in good repair, reasonable wear and tear excepted.  Tenant shall repair and pay for any damage caused by the
negligence of Tenant, or Tenant’s employees, agents or invitees, or caused by
Tenant’s default hereunder.  The term
“walls” as used herein shall not include windows, glass or plate glass, doors,
special store fronts or office entries. 
Tenant shall provide Landlord immediately written notice of defect or
need for repairs, after which Landlord shall have reasonable opportunity to
repair same or cure such defect. 
Landlord’s liability with respect to any defects, repairs or maintenance
for which Landlord is responsible under any of the provisions hereof shall be
limited to the cost of such repairs or maintenance or the curing of such
defect.

 

10.02                     Tenant’s Responsibilities.  Tenant shall at its own cost and expense
maintain all parts of the Premises (except those for which Landlord is
expressly responsible under the terms hereof) in good condition, promptly
making all necessary repairs and replacements. 
Tenant shall not be obligated to repair any damage caused by fire,
tornado or other casualty covered by the insurance to be maintained by Landlord
pursuant to Section 14 below, except that Tenant shall be obligated to repair
all wind damage to glass except with respect to tornado damage.  Tenant shall not damage any demising wall or
disturb the integrity and support provided by any demising wall and shall, at
its sole cost and expense, promptly repair any damage or injury to any demising
wall caused by Tenant or its employees, agents or invitees.

 

SECTION 11:  LANDLORD
SERVICES

 

11.01                     Landlord’s Services.  Landlord agrees to provide Tenant, as
Landlord deems necessary, and subject to the (i) limitations contained in any
governmental controls now or hereafter imposed or matters beyond Landlord’s
control, (ii) cessation for necessity and (iii) Tenant’s payment and
performance obligations in connection with the Center’s Operating Costs, the
following services:

 

(a)                                  Regular
refuse and trash disposal.

 

(b)                                 Water
and sewer access for reasonable uses in the Premises and Common Areas with the
exception of commercial enterprises which require water for the conduct of
their business, the latter cost thereof being paid as Additional Rent hereunder
as billed to such Tenant by Landlord; and

 

(c)                                  Landscaping,
streetscaping, parking lot repair and maintenance and sweeping, electrical
power and water for the Common Areas and lighting for the Common Areas.

 

11.02                     Notice to Tenant.  Upon twenty-four (24) hours notice to
Tenant, Landlord reserves the right to enter the Premises to install and
maintain pipes, energy meters, conduits and other appurtenances in the soffit
or other space about the ceilings or ceiling line, the walls and under any
floors of the Premises, which appurtenances or the like may be for other
tenants of the building in which the Premises is situated.

 

SECTION 12:  TAXES

 

12.01                     Taxes.  Tenant
shall be liable for and shall pay before delinquency (and, upon demand by
Landlord, Tenant shall furnish Landlord with satisfactory evidence of the
payment thereof) all taxes, fees, bonds and assessments of whatsoever kind or
nature, and penalties and interest thereon, if any, levied against Tenant’s
Property or any other personal property belonging, situated or installed in or
upon the Premises whether or not affixed to the realty.  If any such taxes on personal property are
assessed as part of the tax on the real property of which the Premises is a
part, then Tenant shall pay to Landlord the amount of such additional taxes as
may be levied against the real property by reason thereof.

 

12.02                     Additional Taxes.  If at any time during the Term, a tax or excise on rents or other
tax (except income tax), however described, is levied or assessed against
Landlord on account of any rent reserved hereunder, all such tax or excise on
rents or other taxes shall be paid by Tenant. 
Whenever Landlord receives any statement or bill for any such tax or
shall otherwise be required to make payment on account thereof, Tenant shall
pay, as Additional Rent, the amount due hereunder within ten (10) days after
demand therefor accompanied by delivery to Tenant of a copy of such tax
statement, if any.

 

8

 

SECTION 13:  UTILITIES

 

13.01                     Utilities. 
Tenant shall pay all charges for gas, heat, electricity, power, refuse
disposal, environmental waste disposal, air conditioning, telephone service
(collectively “Utilities”) charged or attributable to the Premises, and all
other services or utilities used in, upon or about the Premises by Tenant
during the Term.  To the extent the
costs therefor are not separately metered or billed to Tenant, but are a cost
of the Center, including water, sewer service charges and rentals and customary
refuse disposal, Landlord shall estimate in advance and Tenant shall pay as
Additional Rent and in the manner and at the time(s) Tenant pays its share of
the Center’s Operating Cost under Section 4.01(a) above, all charges for
Utilities and all other services used in, upon or about the Premises by Tenant.

 

13.02                     Pro-rata Share. 
With respect to any Utility or other service mentioned herein which is
not separately metered or billed to Tenant, if Landlord determines that
Tenant’s use of such Utility or service is excessive or abnormal such that it
is unfair to assess Tenant and other tenants therefor on a pro-rata square
footage basis, Landlord shall so notify Tenant.  Such written notice shall contain Landlord’s estimate of a fair
percentage of the overall cost of such Utility or service which should be
billed to Tenant.  If, within thirty
(30) days after Tenant’s receipt of such notice, Landlord and Tenant are unable
to agree upon a fair percentage if the overall cost of such Utility or service
to be paid by Tenant, then, and in such event, Tenant shall thereafter, at
Tenant’s election, either (i) pay the percentage of overall cost set forth in
Landlord’s notice, or (ii) cause such utility or service to be separately
metered to Tenant or separately contracted for by Tenant, so that Tenant will
pay separately, at Tenant’s sole expense, for such Utility or service (in which
case Landlord shall not assess Tenant for any pro-rata share of such Utility or
service).  The cost of any separate
meter shall be paid by Tenant.

 

SECTION 14:  INSURANCE

 

14.01                     General Obligations.  Tenant shall, at all times during the Term,
at its sole cost and expense, procure and maintain in full force and effect a
policy or policies of commercial general liability insurance coverage written
on an occurrence from and issued by an insurance carrier having an A.M. Best
rating of at least A-VIII and authorized to transact business in the State of
Nevada insuring against (i) loss, damage or liability for injury or death to
persons and loss or damage to property, (ii) advertising injury, and (iii) any
contractual liability, occurring from any cause whatsoever in connection with
the Premises or Tenant’s use thereof. 
Such liability insurance shall be in amounts of not less than One
Million Dollars ($1,000,000.00) combined single limit coverage.  Such insurance shall also cover and include
all exterior signs maintained by Tenant hereunder.  Landlord shall be named as an additional insured and loss payee
(and at Landlord’s option, any other persons, firms or corporations designated
by Landlord shall be additional named insured’s) under each such insurance
policy.

 

14.02                     All-Risk Casualty Insurance.  Tenant shall, at all times during the Term,
at its sole cost and expense, procure and maintain in full force and effect
“all-risk” casualty insurance and such further coverages as Landlord may
require, covering not less than 100% of the full replacement value of the
Tenant’s improvements on the Premises and the personal property therein.  Tenant and Landlord, as their interests may
appear, shall be named insured’s (and at Landlord’s option, any other persons,
firms, or corporations designated by Landlord shall be additionally named
insured’s) under each such insurance policy.

 

14.03                     Certificate of Insurance/Evidence
of Renewal.  The minimum limits
of insurance policies required of Tenant hereunder shall in no event limit
Tenants liability hereunder.  A
certificate issued by the insurance carrier for each insurance policy required
to be maintained by Tenant hereunder together with a copy of each such policy
or certificate shall be delivered to Landlord and all other named insured’s on
or before the Occupancy Date
hereof and thereafter, as to policy renewals within thirty (30) days prior to
the expiration of the term of each such policy.  Each certificate of insurance and each such insurance policy
required to be maintained by Tenant hereunder shall be in form and substance
satisfactory to Landlord, shall expressly evidence insurance coverage as
required hereby, and shall contain an endorsement or provision requiring not
less than thirty (30) days prior written notice to Landlord and all other named
insured’s of the cancellation, diminution in the perils insured against, or
reduction of the amount of coverage of the particular policy in question.

 

In the event Tenant fails to procure such insurance,
or to deliver such policies or certificates and appropriate endorsements,
Landlord may, at its option, procure such policies for the account of Tenant,
and the cost thereof plus fifteen percent (15%) administrative charge shall be
paid by Tenant to Landlord as Additional Rent within five (5) days after the
delivery to Tenant of bills therefor. 
The amounts of the insurance required hereunder shall be subject to
adjustment from time to time as requested by Landlord, based upon inflation,
increased liability awards, recommendations of professional insurance advisors,
and other relevant factors.

 

14.04                     Use to not Increase Insurance Risk.  Tenant shall not use or occupy, or permit
the Premises to be used or occupied, in a manner which will increase the rates
of insurance for the Premises or the Center. 
Tenant shall also not use or occupy, or permit the Premises to be used
or occupied, in a manner which will make void or voidable any insurance then in
force with respect thereto or the Center, or which will make it impossible to
obtain casualty or other insurance with respect thereto or the Center.  If by reason of the failure of Tenant to
comply with the provisions of this Section, the other insurance rates for the
Premises or the Center be higher than they otherwise would be, Tenant shall
reimburse Landlord, as Additional Rent, on the first day of

 

9

 

the calendar month next succeeding notice by Landlord to Tenant of said
increase, for that part of all insurance premiums thereafter paid by Landlord
which shall have been charged because of such failure of Tenant.

 

14.05                     Recovery Limited to Insurance.  Tenant hereby waives any and all rights of
recovery from Landlord, its partners, officers, agents and employees for any
loss or damage, including consequential loss or damage, caused by any peril or
perils (including negligent acts) enumerated in each form of insurance policy
required to be maintained by Tenant hereunder.

 

14.06                     Waiver of Subrogation.  Each policy of insurance procured by Tenant
as provided in this Section shall contain an express waiver of any and all
rights of subrogation thereunder whatsoever against Landlord, its partners,
officers, agents and employees.  All
such policies shall be written as primary policies and not contributing with or
in excess of the coverage, if any, which Landlord may carry.  Any other provision contained in this
Section or elsewhere herein notwithstanding, the amounts of all insurance
required hereunder to be procured by Tenant shall not be less than an amount
sufficient to prevent Landlord from becoming a co-insurer.

 

14.07                     Plate Glass. 
Tenant shall replace, at the expense of Tenant, any and all plate and
other glass damaged or broken from any cause whatsoever in and about the
Premises.  Landlord may insure, and keep
insured, at Tenant’s expense, all plate and other glass in the Premises for and
in the name of Landlord.  Bills for the
premiums thereof shall be rendered by Landlord to Tenant at such times as
Landlord may elect, and shall be due from, and payable by, Tenant when
rendered, and the amount thereof shall be deemed to be, and be paid as,
Additional Rent.

 

14.08                     Indemnification.  Tenant during the Term shall indemnify and save harmless
Landlord, the Center and Landlord’s managing agent for the Center from and
against any and all claims and demands whether for injuries to persons or loss
of life, or damage to property, occurring within the Premises or elsewhere on
the Center, or arising out of the use and occupancy of the Premises by Tenant,
or occasioned wholly or in part by any act or omission of Tenant, or its
agents.  However, to the extent that
such claims and demands, whether for injuries to persons or loss of life, or
damage to property are not caused by wilful misconduct on the Landlord’s part,
Tenant shall protect and hold Landlord harmless and shall pay all costs,
expenses and attorney’s fees that may be incurred or paid by Landlord in
defending such claims or demands.

 

In the event Tenant becomes a party to any litigation
solely because of the Landlord’s wilful misconduct, then Landlord shall protect
and hold Tenant harmless and shall pay all costs, expenses and attorney’s fees
that may be incurred or paid by Tenant in defending such claims or demands.

 

14.09                     Landlord’s Policy Covering Center.  Landlord shall, at all times during the
Term, subject to Tenant’s obligations for its pro-rata share of the Center’s
Operating Cost, procure and maintain in full force and effect “all-risk”
insurance against perils included therein, including business income loss for
up to one (1) year, and such further coverage as Landlord may conclude is
necessary covering not less than 80% of the current replacement value of the
building in which the Premises is situated and its improvements, including but
not limited to earthquake and flood coverage. 
The insurer therefor shall meet the minimum requirements as otherwise
set forth above.  Mortgagee(s) of the
Center or any portion thereof may be named as additional insured’s
thereon.  Landlord, in connection with
such casualty insurance, shall endeavor to obtain the agreement of each
mortgagee of the Center or the Premises to make proceeds of such insurance
available for repair and restoration of Landlord’s Work in accordance with the
provisions of Section 20 hereof.

 

14.10                     Landlord’s Liability Policy
Covering Center.  Landlord
shall, at all times during the Term, subject to Tenant’s obligation for its
pro-rata share of the Center’s Operating Costs, procure and maintain in full
force and effect a policy or policies of commercial general liability insurance
assuring against loss or damage or liability for injury or death to persons and
loss or damage to property occurring from any cause whatsoever in connection
with the Center but not necessarily included within the Premises.  Such liability insurance shall be in an amount
of not less than One Million Dollars ($1,000,000.00), combined single limit
coverage.  Such insurance shall also
cover and include all exterior signs maintained by Landlord hereunder.  The insurer therefor shall meet minimum
requirements as otherwise set forth above. 
Mortgagee(s) of the Center or any portion thereof may be named as
additional insured’s thereon.

 

SECTION 15:  LIENS

 

15.01                     Tenant shall allow no Liens.  Tenant shall at all times indemnify, save
and hold Landlord, the Premises, the Center and leasehold created hereby free
of and harmless from any claims, liens, demands, charges, encumbrances,
litigation and judgments arising directly or indirectly out of any use,
occupancy or activity of Tenant, or out of any work performed, material
furnished, or obligations incurred by Tenant in, upon or otherwise in
connection with the Premises.  Tenant
shall give Landlord written notice of at lease ten (10) days prior to the
commencement of any work on the Premises to afford Landlord the opportunity of
filing appropriate Notices of Nonresponsibility.  Tenant shall, at its sole cost and expense,
within fifteen (15) days after filing of any lien of record, obtain the
discharge and release thereof.  Nothing
contained herein shall prevent Landlord, at the cost and for the account of
Tenant, from obtaining said discharge and release in the event Tenant fails or
refuses to do the same within said fifteen (15) day period.

 

10

 

SECTION 16:  INDEMNIFICATION

 

16.01                     Tenant’s Duty to Indemnify.  Tenant hereby indemnifies, saves and holds
Landlord, the Premises, the Center, the leasehold estate, and Landlord’s
management agent for the Center, free and harmless from any and all
liabilities, losses, costs, expenses, including attorneys’ fees (at trial and
appeal), causes of action, suits, judgments, claims, liens and demands of any
kind whatsoever in connection with, arising out of, or by reasons of any act,
omission or negligence of Tenant, its agents or business invitees while in,
upon, about or in any way connected with the Premises or the Center or arising
from any accident, injury or damage, however and by whomever caused, to any
person or property whatsoever, occurring in, upon, about or in any way
connected with the Premises or any portion thereof other than solely as a
result of the wilful misconduct of Landlord.

 

16.02                     Limitation on Landlord’s Liability.  Landlord shall not be liable to Tenant or to
any other person for any damage occasioned by falling plaster, electricity,
plumbing, gas, water, steam, sprinkler or other pipe and sewage system or by
the bursting, running or leaking of any tank, washstand, closet or waste of
other pipes, nor for damages occasioned by water being upon or coming through
the roof, skylight, vent, trapdoor or otherwise or for any damage arising from
any acts or neglect of other tenants or occupants of the Center or of adjacent
property or of the public, nor shall Landlord be liable in damages or otherwise
for any failure to furnish, or interruption of, the service of any utility.

 

16.03                     Landlord’s Duty to Indemnify.  Landlord hereby indemnifies, saves and holds
Tenant and the leasehold estate free of and harmless from any and all
liabilities, losses, costs, expenses, including attorneys’ fees (at trial and
appeal), causes of action, suits, judgments, claims, liens and demands of any
kind whatever directly arising solely out of the wilful misconduct of Landlord
or its employees, while in, upon, about or in any way connected with the
Premises or the Center.

 

16.04                     Survival Clause.  Each party’s indemnity rights and obligations hereunder (whether
set forth in Section 16 or elsewhere) shall survive the expiration or
termination hereof.

 

SECTION 17:  SUBORDINATION;
ESTOPPEL CERTIFICATE

 

17.01                     Subordination. 
Tenant agrees upon request of Landlord to subordinate this Lease and
Tenant’s rights hereunder to the lien of any mortgage, deed of trust or other
encumbrance, together with any renewals, extensions or replacements thereof,
now or hereafter placed, charged or enforced against the Premises, or any
portion thereof, or any property of which the Premises is a part and to execute
and deliver at any time, and from time to time, upon demand by Landlord, such
documents as may be required to effectuate such subordination.  In the event that Tenant fails, neglects or
refuses to execute and deliver any such documents to be executed by it within
ten (10) days after request by Landlord, Tenant hereby irrevocably appoints
Landlord, its successors and assigns, the attorney-in-fact of Tenant to execute
and deliver any and all such documents for and on behalf of Tenant.  Tenant acknowledges that the power of
attorney granted hereby is coupled with an interest.  Failure of Tenant to execute any statements or instruments
necessary or desirable to effectuate the provisions of this Section within ten
(10) days after written request by Landlord, shall constitute a default
hereunder.  In that event, Landlord in
addition to any other rights or remedies it may have, shall have the right, by
written notice to Tenant to terminate this Lease as of a date not less than
twenty (20) days after the date of Landlord’s notice.  Landlord’s election to terminate shall not release Tenant of any
liability for its default.

 

17.02                     Estoppel Certificate.  Tenant agrees that within ten (10) days of
any demand therefor by Landlord, Tenant will execute and deliver to Landlord
and/or Landlord’s designee a recordable certificate stating that this Lease is
in full force and effect, such defenses or offsets as are claimed by Tenant, if
any, the date to which all rentals have been paid, and such other information
concerning the Lease, the Premises and Tenant as Landlord or said designee may
request.  In the event that Tenant fails
to execute and/or deliver any such certificate or offset statement to Landlord
within said ten (10) days, Tenant hereby irrevocably appoints Landlord as
Tenant’s duly authorized attorney-in-fact for the purpose of executing and
delivering any such certificate or offset statement, and Tenant hereby grants
Landlord all power and authority necessary to execute and deliver such
documents on behalf of Tenant.  Tenant
acknowledges that the power of attorney granted hereby is coupled with an
interest.

 

17.03                     Attornment. 
In the event of any sale, transfer or exchange of the Premises or the
Center by Landlord, Landlord shall be and is hereby relieved of all liability
under any and all of its covenants and obligations contained in or derived from
this Lease, arising out of any act, occurrence or omission relating to the Premises
occurring after the consummation of such sale, transfer, conveyance or
exchange.  Tenant agrees to attorn to
such purchaser, transferee or grantee.

 

SECTION 18:  ASSIGNMENT
AND SUBLETTING

 

18.01                     Assignment/Subletting Not
Permitted Without Prior Written Consent.  Tenant shall not assign this Lease or any interest herein, nor
sublet the Premises, or any part thereof, or any right or privilege appurtenant
thereto, nor permit the occupancy or use of any part thereof by any other
person, without the written prior consent of Landlord.  A consent to one assignment, subletting,
occupancy or use, shall not be construed as a consent to any subsequent
assignment, subletting, occupancy or use. 
Tenant shall provide to Landlord evidence of assignees final suitability.

 

11

 

18.02                     Tenant Not Released.  In the absence of an express agreement in
writing to the contrary executed by Landlord, no assignment, mortgage, pledge,
hypothecation, encumbrance, subletting or license hereof or hereunder shall act
as a release of Tenant from any of the terms, covenants and conditions hereof
on the part of Tenant to be kept and performed.

 

18.03                     No Merger.  The
voluntary or other surrender hereof by Tenant, or a mutual cancellation hereof,
or the termination of this Lease by Landlord pursuant to any provisions
contained herein, shall not work a merger, but at the option of Landlord, shall
either terminate any or all subleases or subtenancies, or operate as an
assignment to Landlord of any and such subleases or subtenancies.

 

18.04                     Review Fees. 
Tenant shall reimburse Landlord the greater of $500.00 or Landlord’s
actual costs and attorneys’ fees incurred in connection with the processing and
documentation of any requested transfer.

 

18.05                     Transfer of Ownership.  If Tenant is a corporation, partnership, or
limited liability company the issuance of any additional stock or partnership
or membership interest, as the case may be, and/or the transfer, assignment or
hypothecation of any stock or interest in such corporation, partnership, or
limited liability company in the aggregate in excess of ten percent (10%) of
such interest, as the same may be constituted as of the date hereof, shall be
deemed an assignment within the meaning of this Section 18.

 

18.06                     Tenant Not Released/Conditions.  No subletting or assignment, even with the
consent of Landlord, shall relieve Tenant of its obligation to pay rent and to
perform all its other obligations hereunder. 
Moreover, Tenant shall indemnify and hold Landlord harmless, as provided
in Section 16.01, for any acts or omission by an assignee or subtenant.  Each transferee, other than Landlord, shall
assume all obligations of Tenant hereunder and shall be liable jointly and
severally with Tenant for the payment of all rent and for the due performance
of all Tenant’s obligations under this Lease. 
No transfer shall be binding upon Landlord unless any document
memorializing the transfer is delivered to Landlord and, if the transfer is an
assignment of sublease, both the assignee/subtenant and Tenant deliver to
Landlord an executed document which contains: 
(i) a covenant of assumption by the assignee/subtenant, and (ii) an
indemnification agreement by Tenant, both satisfactory in substance and form to
Landlord and consistent with the requirements of this Section; provided that
the failure of the assignee/subtenant or Tenant to execute the instrument of
assumption shall not release either from any obligation hereunder.

 

The acceptance by Landlord of  any payment due hereunder from any other
person shall not be deemed to be a waiver by Landlord of any provisions hereof
or to be consent to any transfer. 
Consent by Landlord to one or more transfers shall not operate as a
waiver or estoppel to the future enforcement by Landlord of its rights
hereunder.

 

SECTION 19:  CONDEMNATION

 

19.01                     Condemnation. 
In the event of any taking of or damage to all or part of the Premises
(or any interest therein) prior to the expiration or earlier termination hereof
and by reason of any exercise of the power of eminent domain (whether by
condemnation proceedings or otherwise) or by reason of any transfer of all or
any part of the Premises (or any interest therein) made in avoidance of such an
exercise, the rights and obligations of Landlord and Tenant with respect
thereto shall be set forth in this Section. 
Such taking, damage and/or transfer are all referred to as an
“Appropriation.”

 

19.02                     Entire Premises.  If the entire Premises is Appropriated, this Lease shall
terminate and expire as of the date of such Appropriation, and Landlord and
Tenant shall be released from further liability hereunder.

 

19.03                     Portion of the Premises.  If the Appropriation exceeds one-third (1/3)
of the floor space of the Premises and the remainder will not be reasonably
adequate for the operation of Tenant’s business after Landlord completes such
repairs or alterations as Landlord elects to make, either Landlord or Tenant
shall have the option to terminate this Lease by notifying the other party
hereto of such election in writing within thirty (30) days after such
Appropriation.

 

19.04                     Following Appropriation.  Subject to the provisions of Section 19.03
above, if after such Appropriation the remaining part thereof is suitable for
the purposes from which Tenant has leased the Premises, this Lease shall
continue in full force and effect, but the Minimum Monthly Rent shall be
reduced in an amount equal to the proportion of the Minimum Monthly Rent which
the floor space of the portion taken bears to the total floor space of the
Premises.  In the event a partial
Appropriation does not terminate this Lease, Tenant, at Tenant’s expense, shall
make repairs and restoration to the remaining Premises.  Tenant shall also repair or replace its
fixtures, furniture, furnishings and equipment.  If Tenant has closed, Tenant shall promptly reopen for business.

 

19.05                     Landlord’s Right to Terminate.  If any part of the Center comprising more
than 25% of the acreage of the Center, but not including the Premises, shall be
Appropriated, Landlord shall have the right, at its option, to terminate this
Lease by notifying Tenant within six (6) months of such Appropriation.

 

19.06                     Disposition of Awards.  All awards payable on account of such
Appropriation shall be payable to Landlord, and Tenant hereby waives any and
all rights thereto and interest thereon; provided, however, that Tenant shall
be entitled to a separate award for the Tenant’s relocation costs, but Landlord
shall have no obligation with respect thereto.

 

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19.07                     Temporary Taking.  No temporary taking of the Premises by governmental authority
shall terminate this Lease.  Any award
specifically attributable to a temporary taking of the Premises shall belong
entirely to Landlord and the Tenant shall only be entitled to abatement of
Minimum Monthly Rent during that time. 
A temporary raking shall be deemed to be a taking of the use of
occupancy of the Premises for a period not to exceed ninety (90) days.

 

SECTION 20:  DAMAGE OR
DESTRUCTION

 

20.01                     Destruction. 
In the case of the total or partial destruction of the improvements on
the Premises, or any portion thereof, whether by fire or other casualty, this
Lease shall not terminate except as otherwise specifically provided
herein.  Tenant shall be entitled to a
reduction in the Minimum Monthly Rent in an amount equal to that proportion of
the Minimum Monthly Rent which the number of square feet of floor space in the
unusable portion bears to the total number of rentable square feet of the Premises.  Said reduction shall be prorated so that the
Minimum Monthly Rent shall only be reduced for those days any given area is
actually unusable.  Further, if a
portion of the Premises is so damaged or destroyed so as to preclude Tenant
from operating its business, then there shall be a full abatement of Minimum
Monthly Rent until operations may be resumed. 
Subject to the availability of casualty insurance proceeds as provided
in Section 14 above, Landlord shall promptly undertake to repair and restore
the building in which the Premises is situated including Common Areas therein
consistent with the provisions of Section 20.02 below.  Thereafter, Tenant shall, in accordance with
Section 20.02 below, promptly undertake and with reasonable dispatch repair and
reconstruct the Premises and other improvements of Tenant on the Premises.  To the extent insurance proceeds are
insufficient therefor, Tenant shall be liable for any such difference.  In determining what constitutes reasonable
dispatch, consideration shall be given to delays caused by labor disputes,
civil commotion, war, governmental regulations or control, fire or other
casualty, inability to obtain any materials or services, acts of God and other
causes beyond Tenant’s reasonable control.

 

20.02                     Repair and Reconstruction.  The provisions of this Section 20 with
respect to repair and reconstruction by Landlord shall be limited as to that
which is necessary to place the Center in the condition as it existed at the
Occupancy Date and when placed in such condition the Premises shall be deemed
restored and rendered tenantable. 
Thereafter, Tenant, at its expense, shall have no more than ninety (90)
days, subject to extension of time for Force Majeure (as defined in
Section 26 below) and Landlord delays in the completion of its repair or
restoration work, to perform Tenant’s Work and any and all modification,
addition or alteration subsequent thereto. 
Tenant shall also repair or replace its stock in trade, fixtures, furniture,
furnishing, floor coverings and equipment, and if Tenant has closed, Tenant
shall reopen for business within such ninety (90) day period.

 

If the Premises cannot be restored and Tenant’s
business opened within twelve (12) months of such damage or destruction, based
upon an estimate therefor made by Landlord’s architect, then and in such event,
Tenant may, within thirty (30) days after written notice from Landlord
estimating the time to complete such repairs or restoration (which notice shall
be given to Tenant within thirty (30) days of such damage or destruction),
elect to terminate this Lease by written notice to Landlord.

 

20.03                     Insurance Proceeds.  All insurance proceeds payable under any casualty insurance
policy procured and maintained by Tenant shall be payable solely to Landlord and/or
its mortgagee with the provision that such proceeds shall be made available for
repair and restoration of the Premises. 
Tenant shall in no case be entitled to compensation or damages on
account of any annoyance or inconvenience in making repairs under any provision
hereof.  Except to the extent provided
for in this Section 20, neither the rent payable by Tenant nor any of Tenant’s
other obligations hereunder shall be affected by any damage to or destruction of
the Premises or any portion thereof by any cause whatsoever.

 

SECTION 21:  RIGHT OF
ACCESS

 

21.01                     Landlord’s Right to Enter.  Landlord and Landlord’s agents and
representatives shall have the right to enter and inspect the Premises at any
reasonable time during business hours, for the purpose of ascertaining the
condition of the Premises or in order to make such repairs as may be required
or permitted to be made by Landlord under the terms hereof.  Landlord shall have the right to use any
means which Landlord may deem proper to open all doors in the Premises in an
emergency.  Entry onto the Premises
obtained by Landlord by any such means shall not be deemed to be forcible or
unlawful entry into, or a detainer of the Premises, or an eviction of Tenant
from the Premises or any portion thereof. 
Nothing contained herein shall impose or deem to impose any duty on the
part of Landlord to do any work or repair, maintenance, reconstruction or
restoration, which under any provision hereof is required to be done by Tenant.  The performance thereof by Landlord shall
not constitute a waiver of Tenant’s default in failing to do the same.

 

21.02                     Storage of Materials.  Landlord may, during the progress of any
work on the Premises, keep and store upon the Premises all necessary materials,
tools and equipment.  Landlord shall not
in any event be liable for any inconvenience, disturbance, loss of business or
quiet enjoyment, or other damage or loss to Tenant by reason of performing any
such repairs or work upon the Premises, or on account of bringing materials, supplies
and equipment into, upon or through the Premises during the course thereof, and
the obligations of Tenant hereunder shall not thereby be affected in any manner
whatsoever.

 

21.03                     Showing to Re-let.  Landlord, its authorized agents and representatives, shall be
entitled to enter the Premises at all times for the purposes of exhibiting the
same to prospective purchasers and, during the final six (6) months of the Term
hereof, Landlord shall be entitled to exhibit the Premises for lease and post

 

13

 

signs therein announcing the same.

 

SECTION 22:  EXPENDITURES
BY LANDLORD

 

22.01                     Landlord’s Expenditures.  Whenever under any provision of this Lease,
Tenant shall be obligated to make any payment or expenditure, or do any act or
thing, or to incur any liability whatsoever, and Tenant fails, refuses or
neglects to perform as herein required, Landlord shall be entitled, but shall
not be obligated, to make any such payment or to do any such act or thing, or
to incur any such liability, all on behalf of and at the cost and for the
account of Tenant.  In such event, the
amount thereof with interest thereon at the rate of eighteen percent (18%) per
annum shall constitute and be collectible on demand as Additional Rent.

 

SECTION 23:  TENANT’S
DEFAULT; LANDLORDS REMEDIES

 

23.01                     Events of Default.  Tenant’s compliance with each and every covenant and obligation
hereof on its part to be performed hereunder is a condition precedent to each
and every covenant and obligation of Landlord hereunder.  Any one or more of the following shall be a
“Default” hereunder:

 

(a)  Tenant
shall default in the payment of any sum of money required to be paid hereunder
and such default continues for five (5) days after the date any such payment
was due; or

 

(b)  Tenant
shall default in the performance of any other term, covenant or condition
hereof required to be performed by Tenant and such default continues for twenty
(20) days after written notice thereof from Landlord to Tenant.  However, if the default complained of in
such notice is of such a nature that the same cannot with reasonable diligence
be done within said twenty (20) day period, Tenant shall commence to rectify
and cure the same and shall thereafter complete such rectification and cure
with all due diligence, within forty (40) days from the date of giving of such
notice; or

 

(c)  Tenant
vacates or abandons the Premises during the Term hereof.  Abandonment is defined to include, but is
not limited to, any absence by Tenant from the Premises for thirty (30)
consecutive days (or longer) or forty-five (45) days (whether consecutive or
not) in any calendar year; or

(d)  The
occurrence of any Tenant Bankruptcy meaning (a) the application by Tenant or
any Guarantor of Tenant or its or their consent to the appointment of a
receiver, trustee, or liquidator of Tenant or any Guarantor of Tenant or a
substantial part of its or their assets, (b) the filing of a voluntary petition
in bankruptcy or the admission in writing by Tenant or any Guarantor of Tenant
of its inability to pay its debts as they become due, (c) the making by Tenant
or any Guarantor of Tenant of an assignment for the benefit of its creditors,
(d) the filing of a petition or an answer seeking a reorganization or an
arrangement with its creditors or an attempt to take advantage of any
insolvency law, (e) the filing of an answer admitting the material allegations
of a petition filed against Tenant or any Guarantor of Tenant in any
bankruptcy, reorganization, or insolvency proceeding, (f) the entering of an
order, judgment, or decree by any court of competent jurisdiction, adjudicating
Tenant or any Guarantor of Tenant a bankrupt or an insolvent, approving a
petition seeking such reorganization, or appointing a receiver, trustee, or liquidator
of Tenant or any Guarantor of Tenant or of all or a substantial part of its or
their assets, or (g) the commencing of any proceeding under any bankruptcy,
reorganization, arrangement, insolvency, readjustment, receivership, or similar
law, and the continuation of such order, judgment, decree, or proceeding
unstayed for any period of sixty (60) consecutive days after the expiration of
any stay thereof.

 

(e)  Tenant
does, or permits to be done, any act which creates a mechanic’s lien or claim
thereof against the Premises or the Center and fails to discharge same timely;
or

 

(f)  Tenant
fails to furnish Landlord with a copy of any insurance policy or certificate
required to be furnished by Tenant to Landlord when due, and such default shall
continue for ten (10) days after written notice from Landlord; or

 

(g)  Tenant’s
causing, permitting or suffering to be done any act that requires prior written
consent of Landlord, unless such consent is so obtained; or

 

(h)  Tenant
shall fail to occupy the Premises on the Commencement Date as fixed herein; or

 

(i)  The
discovery by Landlord that any financial statement provided by Tenant, or by
any affiliate, successor or guarantor was materially false.

 

23.02                     Landlord’s Rights.  In the event of a default as designated in this Section or
elsewhere herein, in addition to any other rights or remedies provided for
herein or available at law or in equity, Landlord, at its sole option, shall
have the following rights;

 

(a)  The right
to declare the Term of this Lease ended and to re-enter the Premises and to
take possession thereof, and to terminate all of the rights of Tenant in and to
the Premises; or

 

(b)  The right
without declaring the Term of this Lease ended, to re-enter the Premises and to
occupy the same, or any portion thereof, for and on account of Tenant as
hereinafter provided, applying any monies received first to the payment of such
expenses as Landlord may have paid, assumed or incurred in recovering
possession of the Premises, including costs, expenses, attorneys’ fees, and
expenditures placing the same in good order and condition, or preparing or
altering the same for reletting, and all other expenses,

 

14

 

commissions and charges paid, assumed or incurred by Landlord in or in
connection with reletting the Premises and then to the fulfillment of covenants
of Tenant.  Such reletting shall be for
such rent and on such other terms and conditions as Landlord in its sole discretion,
deems appropriate.  In any case, and
whether or not the Premises or any part thereof be relet, Tenant, until the end
of what would have been the term hereof in the absence of such default and
whether or not the Premises or any part thereof shall have been relet shall be
liable to Landlord and shall pay to Landlord monthly an amount equal to the
amount due as Minimum Monthly Rent, less the net proceeds for said month, if
any, of any reletting effected for the account of Tenant pursuant to the
provisions of this Subsection, after deducting all of Landlord’s expenses in
connection with such reletting, including, without limitation, all repossession
costs, brokerage commissions, legal expenses, court costs, attorneys’ fees,
expenses of employees, alteration costs, and expense of preparation for such
reletting (all said costs are cumulative and shall be applied against proceeds
of reletting until paid in full). 
Landlord reserves the right to bring such actions for the recovery of
any deficits remain unpaid by Tenant hereunder as Landlord may deem advisable
from time to time without being obligate to await the end of the Term for a
final determination of Tenant’s account and the commencement or maintenance of
one or more actions by Landlord in this connection shall not bar Landlord from
bringing any subsequent actions for further accruals pursuant to the provisions
of this Section; or

 

23.03                     Removal of Persons and Property.  Pursuant to its rights of re-entry above,
the Landlord may remove all persons from the Premises and may, but shall not be
obligated to remove all property therefrom, and may, but shall not be obligated
to, enforce any rights Landlord may have against such property or store the
same in any public or private warehouse or elsewhere at the cost and for the
account of Tenant or the owner(s) thereof. 
Tenant agrees to hold Landlord harmless from any liability whatsoever
for the removal and/or storage of any such property, whether of Tenant or any
third party whomever.  Anything
contained herein to the contrary notwithstanding, Landlord shall not be deemed
to have terminated this Lease or the liability of Tenant to pay any rent or
other sum of money thereafter to accrue hereunder, or Tenant’s liability for
damages under any of the provisions hereof, by any such re-entry, or by any action
in unlawful detainer or otherwise to obtain possession of the Premises, unless
Landlord shall have specifically, with reference to this Section, notified
Tenant in writing that it has so elected to terminate this Lease.  Tenant covenants and agrees that the service
by Landlord of any notice pursuant to the unlawful detainer statutes of the
State of Nevada and the surrender of possession pursuant to such notice shall
not (unless Landlord elects to the contrary at the time of, or at any time
subsequent to, the service of such notice to Tenant) be deemed to be a
termination of this Lease, or the termination of any liability hereunder of
Tenant to Landlord.

 

23.04                     Court Costs and Attorneys Fees.  In any action brought by Landlord or Tenant
to enforce any of its rights under or arising from this Lease, the prevailing
party shall be entitled to receive its court costs and legal expenses,
including reasonable attorneys’ fees, at trial and on appeal, whether such
action is prosecuted to judgment or not. 
In the event Landlord commences any proceedings for non-payment of any
rent, Tenant will not interpose any counterclaim of any nature or description
in any such proceedings.

 

23.05                     No Waiver.  The
waiver by Landlord of any particular default or breach of any of the terms,
covenants or conditions hereof on the part of Tenant to be kept and performed
shall not be a waiver of any preceding or subsequent breach of the same or any
other term covenant or condition contained herein.  Landlord’s failure to insist upon strict performance of any of
the terms, conditions or covenants herein shall not be deemed to be a waiver of
any rights or remedies of Landlord.  The
subsequent acceptance of rent or any other payment hereunder by Tenant to
Landlord shall not be construed to be a waiver of any preceding breach by
Tenant of any term, covenant or condition of this Lease other than the failure
of Tenant to pay the particular rental or other payment or portion thereof so
accepted, regardless of Landlord’s knowledge of such preceding breach at the
time of acceptance of such rental or payment. 
No payment by Tenant or receipt by Landlord of a lessor amount than the
rent herein provided shall be deemed to be other than on account of the
earliest rent due and payable hereunder, nor shall any endorsement or statement
on any check or any letter accompanying any check or payment as rent be deemed
an accord and satisfaction, and Landlord may accept any such check or payment
without prejudice to Landlord’s right to recover the balance of such rent or
pursue any other remedy provided herein. 
This Section 23 may not be waived.

 

23.06                     Landlord’s Lien.  Tenant agrees that Landlord shall have a Landlord’s lien on and
against all real or personal property of Tenant or any of Tenant’s agents,
subtenants, or licensees situated or in the Premises, which lien shall secure
the payment of all rental and additional charges payable by Tenant to Landlord
under the terms hereof.  Tenant hereby
irrevocably authorizes and empowers Landlord to execute and file, on Tenant’s
behalf, all financing statements, refiling and continuations thereof as
Landlord deems necessary or advisable to create, preserve and protect said
lien.

 

SECTION 24:  QUIET
POSSESSION

 

24.01                     Quiet Possession.  Tenant, upon the timely payment of the Minimum Monthly Rent,
Additional Rent and other sums required of Tenant hereunder, and upon Tenant’s
performance of all of the terms, covenants and conditions hereof on its part to
be kept and performed, may quietly have, hold and enjoy the Premises during the
Term without any disturbance from Landlord or from any other person claiming
though Landlord.

 

SECTION 25:  LANDLORDS
DEFAULT

 

25.01                     Landlord’s Breach.  It is agreed that in the event Landlord fails or refuses to
perform any of the provisions, covenants or conditions hereof on Landlord’s
part to be kept or performed, that Tenant, prior to exercising any right or
remedy Tenant may have against Landlord on account of such default, shall give
written

 

15

 

notice to Landlord of such default, specifying in said notice the
default with which Landlord is charged and Landlord shall not be deemed in
default if the same is cured is within thirty (30) days of receipt of said
notice.  Notwithstanding any other provisions
hereof, Tenant agrees that if the default complained of in the notice provided
for by this Section is of such nature that the same can be rectified or cured
by Landlord, but cannot with reasonable diligence be rectified or cured within
said thirty (30) day period, then such default shall be deemed to be rectified
or cured if Landlord within a thirty (30) day period shall commence the
rectification and curing thereof and shall continue thereafter with all due
diligence to cause such rectification and curing to proceed.

 

25.02                     Limitation of Landlord’s Liability.  The liability of Landlord to Tenant for any
default by Landlord hereunder shall be limited to the equity interest of
Landlord in the Center and Tenant agrees to look solely to Landlord’s equity
interest in the Center for any recovery of any judgement from Landlord; it
being intended that Landlord shall not be personally liable for any judgment or
deficiency.

 

SECTION 26:  FORCE
MAJEURE

 

26.01                     Force Majeure. 
Whenever a period of time is appointed in which, either party hereto is
required to complete any act, the time for the completion thereof shall be
extended by a period of time equal to the number of days which such party is
prevented from or is unreasonably interfered with the completion of such act,
because of labor disputes, civil commotion, governmental regulations or
control, war, fire or other casualty, inability to obtain any materials or to
obtain fuel or energy, weather or other acts of God, or other causes beyond
such party’s reasonable control (financial inability excepted).  However, nothing contained herein shall
excuse Tenant from the prompt payment of any rent or charge required of Tenant
hereunder.

 

SECTION 27:  NOTICES

 

27.01                     Notices.  Any
and all notices and demands required hereunder shall be in writing and shall be
validly given or made if served either personally, or delivered by recognized
commercial courier (such as Federal Express), or if deposited in the United
States Mail, certified or registered, postage prepaid, return receipt
requested.  If such notice or demand be
served by registered or certified mail in the manner provided, service shall be
conclusively deemed given two (2) calendar days after mailing or upon receipt,
whichever is sooner.

 

(a)                                  Any
notice or demand to Landlord shall be addressed to Landlord at:

 

c/o Investment Equity Builders

4560 S. Decatur Boulevard, Suite 200

Las Vegas, Nevada 89103

702-871-4545

702-367-8126 Fax

 

with copy to:                          Deaner, Deaner, Scann Malan
& Larsen

720 S. Fourth Street, Suite 300

Las Vegas, Nevada 89101

702-382-6911

702-366-0854 Fax

ATTN:          Doug Malan

 

(b)                                 Any
notice or demand to Tenant shall be addressed to Tenant at the Premises with a
copy to:

 

INTERNATIONAL INTEGRATED INCORPORATED

4560 South Decatur Boulevard, Suite 300

Las Vegas, Nevada 89103

702-731-2519

702-791-5365 Fax

 

27.02                     Change of Address.  Any party hereto may change its address for the purpose of
receiving notices or demands as herein provided by written notice given in the
manner set forth herein to the other party, which notice of change of address
shall not become effective, until the actual receipt thereof by the other
party.

 

SECTION 28:  GENERAL
PROVISIONS

 

28.01                     Remedies Cumulative.  The various rights, elections and remedies
of Landlord contained herein shall be cumulative and no one of them shall be
construed as exclusive of any other, or of any right, priority or remedy
allowed or provided for by law and not expressly waived herein.

 

28.02                     Successors. 
The terms, covenants and conditions contained herein shall apply to,
bind and inure to the benefit of heirs, executors, administrators, legal
representatives, successors and assigns of Landlord and Tenant (where
permitted).

 

28.03                     Partial Invalidity.  If any term, covenant or condition hereof or any application thereof,
should be held by a court of competent jurisdiction to be invalid, void or
unenforceable, all remaining terms, covenants and conditions hereof, and all
applications thereof, not held invalid, void or unenforceable, shall continue
in full force and effect and shall in no way be affected, impaired, or
invalidated thereby.

 

16

 

28.04                     Time of the Essence.  Time is of the essence of this Lease and all of the terms,
covenants and conditions hereof.

 

28.05                     Entire Agreement/No Parol Evidence.  This Lease contains the entire agreement of
the parties hereto and any and all oral and written agreements, understanding,
representations, warranties, promises and statements of the parties hereto and
their respective officers, directors, partners, agents and brokers with respect
to the subject matter hereof and any matter covered or mentioned herein shall
be merged in this Lease and no such prior oral or written agreement,
understanding, representation, warranty, promise or statement shall be
effective or binding for any reason or purpose unless specifically set forth
herein.  No provision hereof may be
amended or added to except by an agreement in writing signed by the parties
hereto to their respective successors in interest.  This Lease shall not be effective or binding on any party until
fully executed by both parties hereto.

 

28.06                     No Partnership. 
Nothing contained herein shall be deemed or construed by the parties
hereto or by any third party to create the relationship of principal and agent
or of partnership or of joint venture or of any association between Landlord
and Tenant.

 

28.07                     Brokers. 
Except as to Priority One Commercial,
Tenant warrants that it has had no dealings with any other broker or agent in
connection herewith and hereby holds harmless and indemnifies Landlord from and
against any and all cost, expense or liability including legal fees and costs
in defense thereof for any compensation, commissions and charges claimed by any
other broker or agent with respect to this Lease or the negotiation thereof
based on any such brokers or agents representations of Tenant. 
Landlord covenants and agrees to pay all real estate commissions due in
connection with this Lease to Priority One Commercial.It is understood and
acknowledged that Tenant is aware that Cynthia A. Inman is the sister of a
member of the Skyview Business Park, LLC, a Nevada limited liability company
and that Priority One Commercial, of which Cynthia A. Inman is a
Broker-Salesman/Principal, is a duly licensed real estate brokerage firm
licensed in the State of Nevada.

Pursuant to Nevada Real Estate Division
rules, Priority One Commercial advises that they exclusively represent the
Landlord, as referenced in Exhibit “F”, Duties Owed By  A Nevada Real Estate Licensee.

 

28.08                     Attorney’s Fees and Costs.  In the event either party initiates legal
proceedings for the enforcement or interpretation hereof, or any provision
hereof, the prevailing party in such proceedings, including, without
limitation, fees and costs incurred in connection with bankruptcy, arbitration,
and appellate proceedings, shall be entitled to recover from the other party
the costs of such proceedings, including reasonable attorneys’ fees.

 

(a)                                  Any
claim, demand, right or defense of any kind by Tenant which is based upon or
arises in connection herewith or the negotiations prior to the execution
hereof, shall be barred unless Tenant commences an action thereon or interposes
a defense by reason thereof within six (6) months after the date of the
occurrence of the event or the action upon which the claim, demand or right or
defense relates, whichever applies.

 

(b)                                 To
the extent permitted by applicable law, Landlord and Tenant hereby waive all
right to trial by jury in any claim, action, proceeding or counterclaim by
either Landlord or Tenant against each other on any matter arising out of or in
any way connected herewith.

 

28.09                     Governing Law. 
The laws of the State of Nevada shall govern the validity, construction,
performance, enforcement and effect of this Lease.  Any legal action hereunder or in any way pertaining hereto must
be instituted and maintained in Clark County, Nevada.

 

28.10                     Interpretation. 
This Lease shall not be construed either for or against Landlord or
Tenant, but shall be interpreted in accordance with the general tenor of its
language.

 

28.11                     Tenants Consideration.  Tenant agrees and acknowledges that Landlord
has bargained for Tenant’s full and faithful compliance with the terms hereof,
and Tenant’s full and faithful payment of all Minimum Monthly Rent, Additional
Rent and other charges and monies to be paid by Tenant.  Therefore, if Landlord has granted Tenant a
Tenant Improvement Allowance, free rent or other monetary concession, all such
concessions, allowances, and/or benefits to Tenant shall be effective only so
long as Tenant is not in default of any term, covenant or provision of this
Lease.  Thus, should Tenant default
hereunder, in addition to any amounts owing from Tenant to Landlord as a result
of such default, the full amount of any construction allowance, Tenant
Improvement Allowance, free rent and/or other monetary concession shall be
immediately due and payable as Additional Rent by Tenant to Landlord upon
demand.

 

28.12                     Additional Records.  Tenant agrees to deliver to Landlord during the Term, such
financial statements, tax returns and other information respecting the
condition or operations, financial or otherwise, of Tenant as may from time to
time be requested by Landlord.  Such
records shall be delivered to Landlord no later than thirty (30) days following
its request.

 

28.13                     Recordation. 
Tenant shall not record or file this Lease or any form of Memorandum of
Lease or any assignment or security document pertaining hereto or any part
Tenant’s interest herein without the prior written consent of Landlord, which
consent, if granted, may be subject to such conditions as Landlord shall deem
appropriate.  If such consent is granted
Tenant shall pay all recording fees, costs, taxes and other expenses fro the
recording.  However, upon the request of
Landlord, both parties shall execute a memorandum

 

17

 

or “short form” of this Lease for recordation in a form customarily
used for such purposes.  Said memorandum
or “short form” of this Lease shall describe the parties, the Premises and the
Term and shall incorporate this Lease by reference.

 

28.14                     Waiver.  The
waiver by Landlord of any term, covenant or condition herein contained shall
not be deemed to be a waiver of such terms, covenant or condition for any
preceding or subsequent breach of the same or any other term, covenant or
condition herein contained.

 

28.16                     Authority to Execute.  If Tenant is a corporation, or partnership,
or limited liability company, the person(s) executing this Lease on behalf of
Tenant represents and warrants to Landlord that Tenant is a validly existing
corporation, partnership or Limited liability company, as the case may be, all
things necessary to qualify it to do business in Nevada have been accomplished
prior to the date of this Lease, all franchise and other corporate taxes have
been paid to the date hereof, all forms, reports, fees, and taxes required to
be filed or paid by said corporation, or partnership, or limited liability
company in compliance with applicable laws will be filed and paid when due, and
this Lease is the valid and binding obligation of the Tenant, and forcible in
accordance with its terms.

 

28.17                     Landlord’s Reservation of Rights.  Landlord reserves the absolute right to
effect such other tenancies in the Center as Landlord, in the exercise of its
own business judgment, shall determine. 
Tenant does not rely on the fact, nor does Landlord represent, that any
specific Tenant or number of Tenants shall or shall not, during the term hereof
or any extension thereof, occupy any portion of the Center.  There are no other representations or
warranties between the parties hereto, and all reliance with respect to
representations is solely on such representations and agreements as are
contained herein.

 

DO NOT
AFFIX YOUR SIGNATURE(S) BELOW UNTIL YOU HAVE READ AND AGREED WITH THE MATTER
SET FORTH ABOVE.  Should you still have
questions with regard to the above, you are advised to seek the advice of an
independent legal counsel.  WHEN
PROPERLY COMPLETED, THIS IS A BINDING LEGAL DOCUMENT.  IF NOT FULLY UNDERSTOOD, SEEK COMPETENT LEGAL COUNSEL.

 

IN WITNESS WHEREOF the parties hereto have executed
this Lease as of the date set forth above.

 

	
  LANDLORD:

  	
  TENANT:

  
	
   

  	
   

  
	
  SKYVIEW BUSINESS PARK, LLC

  	
  INTERNATIONAL INTEGRATED
  INCORPORATED

  
	
  a Nevada Limited Liability Company

  	
  a British Virgin Islands
  Corporation

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  Date:

  	
   

  
							

 

18

 

EXHIBIT “A”

Site
Plan

 

 

 

Sky View Business Park

Third
Floor

4560 S. Decatur Boulevard

Las Vegas, Nevada 89103

 

 

EXHIBIT B

 

MEMORANDUM OF COMMENCEMENT DATE

 

THE UNDERSIGNED hereby covenants, represents
and warrants to Skyview Business Park, LLC,
a Nevada limited liability company,
“Owner/Lessor”, of the premises containing
              
+/- square feet, known as Space
              
of  4560 South Decatur Boulevard, Las
Vegas, NV  89103 (the “Premises”).

 

1.                                       The undersigned (“Tenant”) is the Tenant of
the premises pursuant to a lease (“Lease”) dated
                            ,
entered into between the undersigned Tenant and Owner/Lessor; and hereby
acknowledges that he has received a full and complete copy of the fully
executed Lease Agreement.

 

2.                                       The Lease is presently in full force and
effect.

 

3.                                       The Lease constitutes the entire agreement
between Owner/Lessor and Tenant, and there have been no amendments, written or
oral, to such agreement, except as set forth in Paragraph 1 above.

 

4.                                       ALL IMPROVEMENTS REQUIRED under the terms of
the Lease to be made by Owner/Lessor have been satisfactorily completed and
have been accepted by the undersigned. 
(EXCEPTIONS TO BE STATED ON A SEPARATE ATTACHED SHEET HERETO, EXECUTED
AND DATED.)

 

5.                                       The undersigned has ACCEPTED the Lease
premises AND THE KEYS THERETO and has commenced occupancy thereof.

 

6.                                       The term of the Lease commences on
                            
and will end on                             .  A monthly rental as of the  date hereof is
                            
per month and commences as of the date of
                                                        .

 

7.                                       Rent for any fractional month shall be paid
upon execution of Owner/Lessor’s Memorandum of Commencement Date.

 

8.                                       The amount of prepaid rent is
                            
for the month of
                                                        .

 

9.                                       The amount of the prepaid security deposit
paid under the terms of the Lease is
                                                        .

 

10.                                 Tenant has provided Lessor with the required
Certificate of Insurance on the premises pursuant to Section 14.03 of the Lease
Agreement.

 

11.                                                                                                                                                 

 

BASE
MINIMUM MONTHLY LEASE RENTAL SCHEDULE

 

	
  YEAR 1 = MONTH 

  	
                THRU
                
  

  	
  =
  $                        

  	
  PER MONTH

  
	
  YEAR 2 = MONTH 

  	
                THRU
                
  

  	
  =
  $                        

  	
  PER MONTH + ANNUAL
  INCREASE

  
	
  YEAR 3 = MONTH 

  	
                THRU
                
  

  	
  =
  $                        

  	
  PER MONTH + ANNUAL
  INCREASE

  
	
  YEAR 4 = MONTH 

  	
                THRU
                
  

  	
  =
  $                        

  	
  PER MONTH + ANNUAL
  INCREASE

  
	
  YEAR 5 = MONTH 

  	
                THRU
                
  

  	
  =
  $                        

  	
  PER MONTH + ANNUAL
  INCREASE

  

 

SCHEDULE IS FOR BASE MINIMUM MONTHLY RENT
ONLY AND DOES NOT INCLUDE ANY OTHER CHARGES OR COSTS PURSUANT TO THE LEASE
AGREEMENT.

 

BASIC RENT IS ADJUSTED TO REFLECT AN ANNUAL
INCREASE AT A FIXED RATE OF
          PERCENT
(       %).

 

 

	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  

 

 

EXHIBIT “C”

 

LANDLORD’S WORK LETTER

 

This Work Letter supplements the lease dated October 10, 2002, executed
concurrently herewith, by and between Skyview
Business Park, LLC, a Nevada Limited Liability Company, as Landlord, and
INTERNATIONAL INTEGRATED INCORPORATED, a
British Virgin Islands Corporation, as Tenant (“Lease”), covering certain premises
described in the Lease (the “Premises”).

 

1.                                       Construction of Base Building Work and
Tenant Improvements.  Landlord shall construct the Premises
including the Base Building Work and all Tenant Improvements (as hereinafter
defined).

 

1.1                                 Base Building Definition. 
Landlord shall construct the Premises consisting of the following:
Building Shell, consisting of foundation and exterior walls, (b) Exterior Doors
and Windows, (c)  Exterior Lighting on
the Building, (d) HVAC units set on the roof (in particular for Tenant’s
premises, of approximately six (6) 5-ton HVAC units), (e) Utilities stubbed to
the building, (f) Elevator, (g) all interior common areas including entrance
lobby area, common hallways and bathrooms on Floors 2 and 3, (h) Interior
entrance doors to each Premises, (i) Parking Lot paved and striped, (j)
Landlord’s standard landscape (collectively referred to as the Base Building
Improvements).  Any items provided by
Landlord in the Premises in addition to the Base Building Improvements shall be
paid for by Tenant, subject to Section 3 below.

 

1.2                                 Exclusions From Base Building Improvements. 
Base Building Improvements shall include all of the items described in
Section 1.1 and shall not include any Tenant Improvements (as defined herein);
without limiting the generality of the foregoing, Base Building Improvements
shall exclude the following:

 

(a)                                  Tenant ceilings and lighting;

(b)                                 Interior finishes of any kind within the
Premises;

(c)                                  Interior partitions, doors, and hardware
within the Premises;

(d)                                 HVAC distribution duct work and controls
within the Premises;

(e)                                  Tenant’s furniture, fixtures and equipment;

(f)                                    Distribution of electrical services,
plumbing services and gas services (if applicable) within the Premises;

(g)                                 Any and all data and telecommunication
distribution and installation within the Premises;

(h)
                              Any and all signs for Tenant and the power
therefore;

(i)
                                  Window coverings; and

(j)
                                  All Tenant’s Plans including architectural,
mechanical, plumbing, and electrical specifications for the Premises.

 

2.                                       Tenant’s Plans and Specifications.

 

2.1                                 Submission of Plans and Specifications by
Tenant.  On or before October 18, 2002, Tenant shall
meet with Landlord’s Architect. Tenant must submit to Landlord for Landlord’s
engineering and approval, complete plans and specifications for the layout,
improvement and finish of the Premises consistent with the design and
construction of the Premises shell, including partition plans, floor and wall
finish plans, reflected ceiling plans, power, telephone communications and data
plans, construction detail sheets and millwork detail plans, showing the
location of partitions, light fixtures, electrical outlets, telephone outlets,
doors, equipment specifications (including weight specifications and cooling
requirements) and power requirements (including voltage, amps, phase, and
special plugs and connections), wall finishes, floor coverings, millwork and
other Tenant Improvements (as defined in Section 2.3) required by Tenant
(collectively, “Tenant’s Plans
as set forth

 

2.2                                 Approval by Landlord. 
Tenant’s Plans shall be subject to Landlord’s approval, which approval
shall not be unreasonably withheld.  If
Landlord disapproves Tenant’s Plans, or any portion thereof, Landlord shall
promptly notify Tenant thereof and of the revisions which Landlord reasonably
requires in order to obtain Landlord’s approval.  As promptly as reasonably possible thereafter, but in no event
later than ten (10) days after Landlord’s notice, Tenant shall submit to
Landlord plans and specifications incorporating the revisions required by
Landlord.  Said revisions shall be
subject to Landlord’s approval, which shall not be unreasonably withheld; if
Landlord disapproves revised Tenant’s Plans, Landlord shall so notify Tenant
thereof and of the further revisions Landlord reasonably requires in order to
obtain Landlord’s approval.  The forgoing
process shall be repeated until Landlord finally approves all of Tenant’s Plans
required for the Tenant Improvements of the Premises, so that Landlord and
Tenant have an agreed upon a set of final plans and specifications.  The final plans and specifications approved
by Landlord shall be referred to as the “Final
Plans.”  Approval by
Landlord shall not be deemed to be a representation by Landlord as to the
adequacy or correctness of the design of the Tenant Improvements.

 

2.3                                 Construction of and Payment for Tenant
Improvements.  All improvements required by the Final Plans
shall be called “Tenant Improvements”
and, subject to Section 3, shall be at Tenant’s sole cost and expense.  All engineering required by Tenant’s Plans
and performed by Landlord’s engineer shall be at Tenant’s expense.  Tenant shall be solely responsible for any
delay or increased cost in completing the Tenant Improvements that are caused
by Tenant’s delays or changes.  Tenant
shall also be solely responsible for the design, function and maintenance of
all Tenant Improvements, except as specifically provided otherwise in the
Lease.

 

 

2.4                                 As-Built Plans. 
Within sixty (60) days after the occupancy of the Premises, Tenant shall
submit to Landlord a set of “as-built” plans incorporating all changes and/or
revisions that have been made subsequent to the submission of the Final Plans
specified in Section 2.2.

 

3.                                       Tenant Improvement Allowance.

 

Tenant shall be credited with an allowance ( the “Tenant Improvement Allowance”) of  $25.00 per usable square foot of the
Premises at cost.  The Tenant
Improvement Allowance is to be applied against the cost of the Tenant
Improvements.  The Tenant Improvement
Allowance shall be used solely for the design, including engineering plans and
specifications, purchase, installation, and construction of the Tenant
Improvements which constitute permanent improvements to the Premises
(including, without limitation, carpeting and window coverings), and shall not
be used for furniture, furnishings or equipment.  Tenant shall not be entitled to any payment or rent reduction for
any part of the Tenant Improvement Allowance not used by Tenant.

 

4.                                       Cost of and Payment of Tenant Improvements.

 

4.1                                 Tenant Obligation. 
Tenant, at its sole expense, shall pay for the cost of all Tenant
Improvements to the extent such cost exceeds the Tenant Improvement Allowance.

 

4.2                                 Tenant Improvement Cost Estimate. 
Prior to the commencement of any Tenant Improvement, Landlord shall
submit to Tenant a written estimate (Estimate) of the cost of the Tenant
Improvements.  The Estimate shall
include the general contract, subcontract, purchase order, or labor and
materials cost of the Tenant Improvements including Allowances at cost (as
hereinafter defined), One Hundred Thirty Four Thousand and no/100 dollars. ($134,000.00)” is an estimate of cost for an
item of work not sufficiently defined in the documents to allow a fixed price
to be obtained by the general contractor for which the Estimate is to be
increased or decreased respectively by the precise amount that the actual cost of
the Allowance item is either in excess of or less than the amount of the
Allowance for that item.  Tenant shall
approve the Estimate as soon as reasonably possible, but in any event within
seven (7) days of  Tenant’s receipt of
the Estimate.  If Tenant’s approval is
delayed, such delay shall be treated as a Tenant-Caused Delay under Section
7.  Landlord shall be under no
obligation to construct any of the Tenant Improvements until Tenant has
approved the Estimate; provided, however, Landlord shall have the option to
commence and complete the Tenant Improvements.

* Landlord
to provide different front doors upstairs not included in Tenant Improvement
Dollars and to be agreed upon by Landlord and Tenant.

 

4.3                                 Tenant’s Payment Obligation.  The
cost of the Tenant Improvements to be paid by Tenant pursuant to Section 4
shall include (a) the general contract, subcontract, purchase order, or labor
and materials cost of the Tenant Improvements plus “Allowances” as finally
adjusted plus the general contractor’s fee, overhead and general conditions
charges, plus (b) the cost of Change Orders, as defined in Article 6, minus (c)
the Tenant Improvement Allowance (Cost of Tenant Improvements).  Tenant shall pay the Cost of Tenant Improvements
to Landlord prior to the commencement of the Tenant Improvements and Landlord
shall deposit such funds into Landlord’s general account for payment to the
contractor in accordance with the terms of the construction contract for the
Tenant Improvements.  Landlord shall be
under no obligation to construct any of the Tenant Improvements until Tenant
has paid the Cost of Tenant Improvements to Landlord as required herein;
provided, however, Landlord shall have the option to commence and complete the
Tenant Improvements.

 

4.4                                 Payment Reconciliation.  In
the event of any shortage in the amount of the Cost of Tenant Improvements
based on the actual costs of the construction of such improvements, the Tenant
shall immediately deposit funds with Landlord in an amount sufficient to pay
for such costs.  In the event that
Tenant fails to pay for such costs, Landlord may apply all or part of the
Security Deposit held by Landlord under the Lease to the Cost of Tenant
Improvements in accordance with Section 4.5 of the Lease.

 

5.                                       Construction.

 

5.1                                 Punch List. 
Landlord shall cause the general contractor to inspect the Premises on
or before five (5) days prior to the date upon which Tenant occupies the
Premises, with a representative of Tenant and complete a written punch list of
unfinished items of Tenant Improvements. 
Tenant’s representative shall execute said punch list to indicate
approval thereof.

 

6.                                       Changes, Additions or Alterations.  If
Tenant shall request any change, addition or alteration in the Final Plans
(Change Order), Tenant shall prepare and submit to Landlord plans,
specifications and permits with respect to such Change Order for Landlord’s
approval.  Any such Change Order shall
be subject to the provisions of Sections 2.2 and 4.  Neither Landlord nor the contractor shall proceed with the Change
Order until Tenant has paid Landlord the additional cost, if any, of the Tenant
Improvements attributable to such Change Order.

 

 

7.                                       Delay.  Tenant shall be responsible
for, and pay any and all costs and expenses incurred by Landlord in connection
with any delay in the commencement of completion of the Tenant Improvements
described in this Workletter, caused by (a) Tenant’s failure to prepare or
cause to be prepared, and submit or cause to be submitted, its plans and
specifications within the time periods required herein or obtain permits in a
timely manner, (b) Tenant’s failure to approve or disapprove Landlord’s cost
estimate within the time periods required herein, © any changes, additions, or
alterations in the Tenant Improvements described in the Final Plans which were
requested or approved by Tenant, (d) delays in the schedule of construction of
the Premises caused by materials or improvements required by Tenant of the type
described in Section 2.3, and (e) any other delay requested or caused by
Tenant, including those occurring under Section 2.3.  The foregoing delays are referred to herein and in the Lease as “Tenant-Caused Delays.”

 

8.                                       Default.  Any default by Tenant under the
terms of this Building Standard Workletter shall constitute a default under the
Lease to which this Workletter is attached, and shall entitle Landlord to
exercise all remedies set forth in the Lease.

 

9.                                       Reasonable Diligence. 
Both Landlord and Tenant agree to use reasonable diligence in performing
all of their respective obligations and duties under this Workletter and in
proceeding with the construction and completion of the Tenant Improvements in
the Premises.

 

 

	
  Dated: October 10TH,
  2002

  	
   

  
	
   

  	
   

  
	
   

  	
  LANDLORD:

  
	
   

  	
   

  
	
   

  	
  SKYVIEW BUSINESS PARK,
  LLC

  
	
   

  	
  a Nevada limited
  liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Its:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TENANT:

  
	
   

  	
   

  
	
   

  	
  INTERNATIONAL INTEGRATED

  INCORPORATED

  
	
   

  	
  a British Virgin Islands
  Corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Its:

  	
   

  

 

 

EXHIBIT “D”

 

Tenant
Signage Criteria

 

All signs that are to be installed for the benefit of
each individual tenant shall be at the sole cost and expense of Tenant.  Tenant shall be permitted to install an
identification sign on its entrance door and on the Pylon Sign.

 

DOOR SIGNS:  Tenant shall be permitted to install vinyl,
self adhering letters to identify Tenant and Tenant’s business to Landlord’s
designated Suite Signs.  The letters are
to be Helvetica bold in style and shall be no greater than 4 inches in
height.  A maximum of 4 lines of
lettering will be permitted.

 

PYLON SIGNAGE:  Tenant at Tenant’s sole cost shall be
allowed to install Tenant’s name and logo on the Pylon sign in a location as
designated by Landlord.  The letters are
to be Helvetica bold in style and shall be no greater than 10” in height.  Landlord shall have final approval, which shall
not be unreasonably withheld, of Tenant’s sign.

 

BUILDING SIGNAGE: (To be decided by
Landlord at later date for signage on building) Tenant at Tenant’s sole cost
shall be allowed to install Tenant’s Name on the Building in a location as
designated by Landlord.  The letters are
to be Helvetica bold in style and shall be no greater than 24” in height.  Landlord shall have final approval, which
shall not be unreasonably withheld, of Tenant’s sign.  Landlord reserves the right to amend these criteria from time to
time without notice to Tenant.

 

 

EXHIBIT “E”

 

RULES
AND REGULATIONS

 

(a)                 Sidewalks,
parking areas, doorways, vestibules, halls, stairways, and similar areas shall
not be obstructed nor shall refuse, furniture, boxes, or other items be placed
therein by Tenant or its officers, agents, servants, and employees, or used for
any purpose other than ingress and egress to and from the Premises, or for
going from one part of the Building to another part of the Building.
Canvassing, soliciting and peddling in the Building are prohibited.

 

(b)                Tenant
shall dispose of all trash in receptacles designated by Landlord.  Notwithstanding the preceding sentence,
Tenant shall be solely responsible, at Tenant’s sole cost and expense, for
disposing of all of Tenant’s biohazardous waste which Tenant shall dispose of
in compliance with all applicable laws.

 

(c)                 Plumbing,
fixtures and appliances shall be used only for the purposes for which
constructed, and no unsuitable material shall be placed therein.

 

(d)                No
signs, directories, posters, advertisements, or notices shall be painted or
affixed on or to any of the windows or doors, or in corridors or other parts of
the Building, except in such color, size, and style, and in such places, as
shall be first approved in writing by Landlord in its reasonable
discretion.  Landlord shall have the
right to remove all unapproved signs without notice to Tenant, at the expense
of Tenant.

 

(e)                 Tenant
shall not do, or permit anything to be done in or about the Building, or bring
or keep anything therein, that will in any way increase the rate of fire or
other insurance on the Building, or on property kept therein or otherwise
increase the possibility of fire or other casualty.

 

(f)                   Corridor
doors, when not in use, shall be kept closed.

 

(g)                Tenant
shall not cause or permit any improper noises in the Building, or allow any
unpleasant odors to emanate from the Premises, or otherwise interfere, injure
or annoy in any way other tenants, or persons having business with them.

 

(h)                No
animals shall be brought into or kept in or about the Building except for
animals permitted by applicable law which assist physically impaired
individuals.

 

(i)                    When
conditions are such that Tenant must dispose of crates, boxes, etc. on the
sidewalk, it will be the responsibility of Tenant to dispose of same prior to
7:30 a.m. or after 5:30 p.m.

 

(j)                    No
machinery of any kind, other than ordinary office machines such as computers
and photocopy machines and medical equipment of a type normally found in a high
quality family practice out-patient clinic, shall be operated on Premises
without the prior written consent of Landlord, nor shall Tenant use or keep in
the Building any inflammable or explosive fluid or substance (including living
Christmas trees and lighted ornaments) except fluids or substances commonly
found in a high quality family practice clinic, or any illuminating materials,
except candles.

 

(k)                 No
motorcycles or similar vehicles will be allowed in any portion of the Building
other than the parking areas.

 

(l)                    No
nails, hooks, or screws (other than for the purpose of hanging normal office
wall decorations) shall be driven into or inserted in any part of the Building
except as approved by Building maintenance personnel.

 

(m)              Landlord
has the right to evacuate the Building in the event of an emergency or
catastrophe.

 

(n)                No
food and/or beverages shall be distributed from Tenant’s office (other than
food and beverages intended for Tenant’s employees and clients) without the
prior written approval of Landlord.

 

(o)                No
additional locks shall be placed upon any doors without the prior written
consent of Landlord. All necessary keys shall be furnished by Landlord, and the
same shall be surrendered upon termination of this Lease, and Tenant shall then
give Landlord or its agent an explanation of the combination of all locks on
the doors or vaults. Tenant shall initially be given two (2) keys to the
Premises by Landlord.  Notwithstanding
the foregoing, Tenant may have a locked drug cabinet on the Premises and
Landlord shall not furnish or have copies of any keys for such drug cabinet.

 

(p)                Tenant
will not locate furnishings or cabinets adjacent to mechanical or electrical
access panels or over air conditioning outlets so as to prevent operating
personnel from servicing such units as routine or emergency access may require.
Cost of moving such furnishings for Landlord’s access will be for Tenant’s
account.

 

(q)                Tenant
shall comply with parking rules and regulations as may be posted and
distributed from time to time.

 

(r)                   No
portion of the Building shall be used for the purpose of lodging rooms.

 

(s)                 Vending
machines or dispensing machines of any kind will not be placed in the Premises
by Tenant other than soft drink, candy and other similar vending machines for
the use of Tenant’s employees).

 

(t)                   Prior
written approval, which shall be at Landlord’s sole discretion, must be
obtained for installation of window shades, blinds, drapes, or any other window
treatment of any kind whatsoever. Landlord will control all internal lighting
that may be visible from the exterior of the Building and shall have the right
to change any unapproved lighting at Tenant’s expense.

 

 

(u)                No
Tenant shall make any changes or alterations to any portion of the Building
without Landlord’s prior written approval, which may be given on such
conditions as Landlord may elect. All such work shall be done by Landlord or by
contractors and/or workers approved by Landlord, working under Landlord’s
supervision.  The provisions of this
Paragraph shall not affect or be deemed to supersede in any way the provisions
the of the Lease with regard to the improvement and alteration of the Premises.

 

(v)                Tenant
shall provide plexiglas or other pads for all chairs mounted on rollers or
casters.

 

(w)              The
Landlord has designated this as a non-smoking building.  Smoking will not be allowed in the common
areas of the building.

 

(x)                  Tenants
use of elevators for move-in purposes shall be restricted to weekend hours
only.  Tenant shall be responsible for
any and all damage caused by the use of the elevator for move-in purposes and
will promptly reimburse Landlord upon written notification of damage.  Tenant shall use moving blankets to
minimized and such damage.

 

(y)                Landlord
reserves the right to rescind any of these rules and make such other and
further rules and regulations as in its reasonable business judgment shall from
time to time be needful for the operation of the Building, which rules shall be
binding upon each Tenant upon delivery to such Tenant of notice thereof in
writing.

 

 

EXHIBIT “F”

 

AGENCY
DISCLOSURE

 

DUTIES
OWED BY A NEVADA REAL ESTATE LICENSEE

 

In Nevada, a real estate licensee can (1) act for only one party to a
real estate transaction, (2) act for more than one party to a real estate
transaction with written consent of each party, or (3) if licensed as a broker,
assign different licensees affiliated with the brokers company to separate
parties to a real estate transaction.  A
licensee, acting as an agent, must act in one of the above capacities in every real
estate transaction.  If this form is
used for a lease, the term Seller shall mean Landlord/ Lessor and the term
Buyer means Tenant/ Lessee.

 

LICENSEE: The licensee in the real estate transaction is  Cynthia A. Inman  (Licensee) whose
license number is  22421.  The Licensee is acting exclusively for the
Lessor.  BROKER: The broker in the real
estate transaction is  Julie M. Collins
( sBroker) whose company is Priority One
Commercial. (Company). *Cynthia A. Inman, Broker-Salesman/Principal
of Priority One Commercial is the sister of one of the members of Skyview
Business Park, LLC, Lessor.

 

A NEVADA
REAL ESTATE LICENSEE IN A REAL ESTATE TRANSACTION SHALL:

 

1.                                       Disclose
to each party to the real estate transaction as soon as is practicable:

(a) Any material
and relevant facts, data or information which Licensee knows, or which by the
exercise  of reasonable care and
diligence licensee should have known, relating to the property which is the
subject of the real estate transaction.

(b) Each source
from which Licensee will receive compensation as a result of the transaction.

(c) That Licensee
is a principal to the transaction or has interest in a principal to the
transaction.

(d) Any changes in
Licensees relationship to a party to the real estate transaction.

 

2.                                       Disclose,
if applicable, that Licensee is acting for more than one party to the
transaction.  Upon making such a
disclosure the Licensee must obtain the written consent of each party to the
transaction for whom Licensee is acting before Licensee may continue to act in
Licensees capacity as an agent.

 

3.                                       Exercise
reasonable skill and care with respect to all parties to the real estate
transaction.

 

4.                                       Provide
to each party to the real estate transaction this form.

 

5.                                       Not
disclose, except to the Broker, confidential information relating to a client.

 

6.                                       Exercise
reasonable skill and care to carry out the terms of the brokerage agreement and
to carry out Licensees duties pursuant to the terms of the brokerage agreement.

 

7.                                       Not
disclose confidential information relating to a client for 1 year after the
revocation or termination of the brokerage agreement, unless Licensee is
required to do so by order of the court. 
Confidential information includes, but is not limited to the clients
motivation to purchase, sell or trade and other information of a personal
nature.

 

8.                                       Promote
the interest of his client by:

(a) Seeking a
sale, lease or property at the price and terms stated in the brokerage
agreement or at a price acceptable to the client.

(b) Presenting all
offers made to or by the client as soon as is practicable.

(c) Disclosing to
the client material facts of which the licensee has knowledge concerning the
transaction.

(d) Advising the
client to obtain advice from an expert relating to matters which are beyond the
expertise of the licensee.

(e) Accounting for
all money and property Licensee receives in which the client may have an
interest as soon as is practicable.

 

9.                                       Not
deal with any party to a real estate transaction in a manner which is
deceitful, fraudulent or dishonest.

 

10.                                 Abide
by all duties, responsibilities and obligations required of Licensee in
chapters 119, 119A, 119B 645, 645A and 645C of the NRS.

 

In the event any party to the real estate transaction is also
represented by a licensee who is affiliated with the same Company, the Broker
may assign another licensee to act for that party.  The above Licensee will continue to act for you.  As set forth above, no confidential
information will be disclosed.

 

I/We acknowledge receipt of a copy of this list of licensee duties, and
have read and understand this disclosure.

 

 

	
  Tenant

  	
  Date

  	
  Time

  	
  am/ pm

  
	
   

  	
   

  	
   

  	
   

  
	
  Landlord

  	
  Date

  	
  Time

  	
  am/pm

  

 

CONFIRMATION
REGARDING REAL ESTATE AGENT RELATIONSHIP

 

Property Address:  4560 S.
Decatur Boulevard, Suite 300, Las Vegas, Nevada 89103

 

I/We confirm the duties of a real estate licensee of which has been
presented and explained to me/us. 
My/our representatives relationship is:

 

	
  Cynthia A. Inman

  	
   

  	
  is the AGENT of

  	
   

  	
  is the AGENT of

  
	
  ý
  Seller / Landlord Exclusively*

  	
   

  	
  o
  Both Buyer & Seller**

  	
   

  	
  ý
  Buyer / Tenant Exclusively

  	
   

  	
  o
  Both Buyer & Seller**

  

 

**IF AGENT IS ACTING FOR MORE THAN ONE PARTY IN THIS TRANSACTION, you
will be provided a consent to Act Form for your review, consideration and
approval or rejection.  A licensee can
legally represent both the Seller and Buyer in a transaction but ONLY with the
knowledge and written consent of BOTH the Seller and Buyer.  * A licensee who is acting for the Seller
exclusively, is not representing the Buyer and has no duty to advocate or
negotiate for the Buyer. and has no duty to advocate or negotiate for the
Buyer.  ***A licensee who is acting for
the Buyer exclusively, is not representing the Seller and has no duty to
advocate or negotiate for the Seller.

 

	
  Priority One Commercial

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Listing Company

  	
   

  	
   

  	
   

  	
  Buyers Company

  	
   

  	
  Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Licensed Real Estate Agent

  	
   

  	
   

  	
  Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Landlord:

  	
   

  	
   

  	
  Date:

  	
   

  	
   

  	
  Tenant::

  	
   

  	
   

  	
   

  	
  Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Landlord:

  	
   

  	
   

  	
  Date:

  	
   

  	
   

  	
  Tenant:

  	
   

  	
   

  	
   

  	
  Date:

  
															

 

 

sNevada Association of REALTORSs

 

 

LEASE
SUMMARY - File No.:

 

	
  DATE
  OF LEASE:

  	
   

  	
  October 8, 2002

  
	
  PREMISES:

  	
   

  	
  4560 S. Decatur Boulevard, Suite
  300, Las Vegas, Nevada

  
	
  LANDLORD:

  	
   

  	
  Skyview Business Park, LLC

  
	
  TENANT:

  	
   

  	
  International Integrated
  Incorporated

  
	
  TENANTsS TRADE NAME:

  	
   

  	
   

  
	
  PROPOSED
  USE:

  	
   

  	
  General Office for Investment
  Management Consultant

  
	
  GUARANTOR(S):

  	
   

  	
  Corporate

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL
  RENTABLE AREA

  	
   

  	
  OFFICE:

  	
   

  	
  Rentable:

  	
   

  	
  6,100

  	
   

  	
  Usable:

  	
   

  	
  5,105

  
	
  RENTAL
  RATE

  	
   

  	
  $1.75

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $10,675.00

  
	
  LEASE TERM:  66 Months

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  COMMENCEMENT        DATE:
  December 1, 2002

  	
   

  	
  Occupancy Date:  December 1, 2002

  
	
  TOTAL
  INITIAL RENT/ANNUAL BASIS:

  	
   

  	
  $128,100.00

  
	
  DEFERRED
  MONTHS:

  	
   

  	
  Months two (2) thru seven (7)

  
	
  SECURITY
  DEPOSIT:

  	
   

  	
  N/A

  
	
  PREPAID RENT:

  	
  $10,675.00

  	
   

  	
  PREPAID

  CAM:

  	
   

  	
  $1,769.0

  	
   

  
	
  CAM RESERVE:

  	
  $0.29/s.f.

  	
   

  	
  RENTAL RATE INCREASE (%): Three
  Percent (3%)

  
	
  INCREASE PERIOD: 12 Months

  	
   

  	
  FINANCIALS RECEIVED:

  
	
  ADDRESS FOR NOTICE TO

  TENANT:

  	
   

  	
   

  
	
   

  	
   

  	
  4560 S. Decatur Boulevard, Suite
  300

  
	
   

  	
   

  	
  Las Vegas, Nevada 89103

  
	
   

  	
   

  	
  TELEPHONE:

  	
   

  	
  702-871-8510

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PRIORITY
  ONE

  AGENT:

  	
  Cyndi

  Inman

  	
   

  	
  OUTSIDE
  AGENT:

  	
   

  	
  Robert O’Neil

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  COMMISSION (%) :

  	
  3.0%

  	
   

  	
  3.0%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BREAK
  DOWN OF RENT SCHEDULE:

  
	
   

  
	
  SQ.

  FT.

  	
   

  	
  RENT

  PER MO

  	
   

  	
  RENT

  PER YR

  	
   

  	
  YR

  	
   

  	
  TOTAL

  per Annum.

  	
   

  	
  COM. %

  Outside

  	
   

  	
  COM. %

  Priority

  	
   

  	
  COM. PAID

  Outside

  	
   

  	
  COM. PAID

  PRIORITY

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
  $

  	
   0.00

  	
   

  	
   

  	
   

  	
  $

  	
  0.00

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
   0.00

  	
   

  	
  $

  	
   0.00

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SPECIAL IMPROVEMENTS:  Landlord to allow Tenant $28.40 per usable
  square foot toward Tenant’s Improvements

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}]]