Document:

Exhibit 10.1

 

LEASE
AGREEMENT

 

THIS
LEASE AGREEMENT (“Lease”) is made as of this 4th day
of December, 2007, by and between FDG Flagler
Center I LLC, a Delaware limited liability company, an address of
which is 10151 Deerwood Park Boulevard, Building 100, Suite 330,
Jacksonville, Florida 32256 (“Landlord”) and Website Pros, Inc., a Delaware corporation, an address of
which is 12735 Gran Bay Parkway West, Building 200, Suite 100,
Jacksonville, Florida 32258 (“Tenant”).

 

1.                                       PROPERTY; TERM.

 

1.1                                  PREMISES.  The Landlord hereby leases to the
Tenant and the Tenant hereby leases from the Landlord the building located at 12808 Gran Bay Parkway
West, Jacksonville, Florida 32258 (“Premises” or “Building”),
which Premises is deemed to contain 112,306 rentable square feet for all
purposes of this Lease. The Premises is situated on the real property described
in Exhibit A attached
hereto (“Property”) and included in a multiple building, business and/or
industrial park known as Flagler Center (“Park”).

 

1.1.1                  PHASE IN.  Tenant intends to
occupy the Building in two phases.  The
first phase shall consist of at least 82,682 rentable square feet (the “Phase
I Premises”), and the second phase shall consist of the remaining rentable
square footage of the Building (the “Phase II Premises”).  The location and configuration of the space
to be included in each phase shall be set forth in Tenant’s Plans (as defined
in the Work Letter).

 

1.2                                 COMMON AREAS.  Tenant and its employees and customers
will have the nonexclusive right during the Term of this Lease to use the
parking areas, streets, driveways, aisles, sidewalks, curbs, delivery passages,
loading areas, lighting facilities, and all other areas in the Property
designated by Landlord, from time to time, for use by all tenants of the
Property in common (collectively, the “Common Areas”), in common with
Landlord, other tenants of the Property and other persons designated by
Landlord.

 

1.3                                 LEASE
TERM.  The term of this Lease (the “Term”)
shall be one hundred thirty-two (132) calendar months plus the portion of the
month in which the Phase I Commencement Date (as defined below) occurs if the
Phase I Commencement Date is other than the first day of the month.  The Term shall commence as to the Phase I
Premises on the 14th day following the date of Substantial
Completion of the Tenant Improvements to the Phase I Premises, as defined in
the Work Letter (the “Phase I Commencement Date”), which is estimated to
be April 1, 2008; provided, however, that Tenant shall have no right to
possession of the Phase I Premises until the Security Deposit has been
delivered to Landlord (the Security Deposit shall not be deemed delivered to
Landlord if it is in the form of a check until that check has cleared the bank
and funds have been credited to Landlord’s account) and the Tenant has provided
Landlord with a certificate of insurance evidencing the insurance coverages
that Tenant is obligated to maintain pursuant to this Lease.  The Term shall commence as to the
Phase II Premises on the earlier to occur of (i) the first day of the
thirteenth (13th) full calendar month of the Term, or (ii) as to any
portion of the Phase II Premises, on the date that Tenant takes
possession of such portion of the Phase II Premises, and opens for the conduct
of business operations therein (other than any de minimis use) 

 

1

 

(the
“Phase II Commencement Date”).  
Landlord and Tenant shall execute a Commencement Agreement substantially
in the form of Exhibit C
attached hereto once the Phase I Commencement Date has been determined, and
shall supplement such Commencement Agreement, as needed, to document any early
Phase II Commencement Date(s).

 

1.4                                 HOLDOVER OF
CURRENT LEASE.  Landlord and Tenant
entered into that certain Lease Agreement dated as of January 17, 2003, as
amended by that certain First Amendment to Lease dated as of November 23,
2005 (together, the “Current Lease”) for the lease of Suite 100,
which is deemed to contain 41,149 rentable square feet, in Flagler Center
Building 200, which is located at 12735 Gran Bay Parkway West, Jacksonville,
Florida 32258.  The Termination Date, as defined in Section 1.3 of the Current
Lease, is hereby extended to the Phase I Commencement Date (the “Extended Term”).  During the Extended Term, Tenant shall
continue to pay Base Rent at the rate of $41,251.87 per month ($12.03 per
rentable square foot per year).

 

1.5                                 RENEWAL
TERM.  Tenant shall have the option to
renew this Lease as set forth in the attached Renewal Rider.

 

2.                                     RENT AND OTHER CHARGES.

 

2.1                                 BASE RENT.  Tenant agrees to pay rent (“Base
Rent”) in equal monthly installments on the first day of each month of the
term, together with any and all rental, sales or use taxes levied by any
governmental body for the use or occupancy of the Premises and any rent or
other charges payable hereunder in accordance with the following schedule:

 

	
  Lease

  Months

  	
   

  	
  Annual Base Rent/

  RSF

  	
   

  	
  Monthly Base Rent

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1-4

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  
	
  5-12

  	
   

  	
  $

  	
  14.25

  	
   

  	
  $

  	
  98,184.88

  	
  *

  
	
  13-24

  	
   

  	
  $

  	
  14.68

  	
   

  	
  $

  	
  137,387.67

  	
   

  
	
  25-36

  	
   

  	
  $

  	
  15.12

  	
   

  	
  $

  	
  141,505.56

  	
   

  
	
  37-48

  	
   

  	
  $

  	
  15.57

  	
   

  	
  $

  	
  145,717.04

  	
   

  
	
  49-60

  	
   

  	
  $

  	
  16.04

  	
   

  	
  $

  	
  150,115.69

  	
   

  
	
  61-72

  	
   

  	
  $

  	
  16.52

  	
   

  	
  $

  	
  154,607.93

  	
   

  
	
  73-84

  	
   

  	
  $

  	
  17.02

  	
   

  	
  $

  	
  159,287.34

  	
   

  
	
  85-96

  	
   

  	
  $

  	
  17.53

  	
   

  	
  $

  	
  164,060.35

  	
   

  
	
  97-108

  	
   

  	
  $

  	
  18.05

  	
   

  	
  $

  	
  169,020.53

  	
   

  
	
  109-120

  	
   

  	
  $

  	
  18.59

  	
   

  	
  $

  	
  174,074.30

  	
   

  
	
  121-132

  	
   

  	
  $

  	
  19.15

  	
   

  	
  $

  	
  179,315.25

  	
   

  

 

*                                         Calculated based upon
82,682 rentable square feet.

 

2

 

If the Phase I Commencement
Date should be a date other than the first day of a calendar month, then the first
installment of Base Rent shall be prorated by multiplying the regular monthly
installment of Base Rent by a fraction, the numerator of which is the number of
days from the Phase I Commencement Date through the final day of the first
calendar month of the Term and the denominator of which is the total number of
days in the calendar month in which the Phase I Commencement Date occurs (and
Tenant shall pay such prorated Base Rent amount to Landlord together with, and
at such time as, the installment of Base Rent for the fifth (5th)
full calendar month of the Term becomes due). In such event, Lease Month 1
would commence on the first day of the calendar month following the month in
which the Phase I Commencement Date occurs.

 

Base Rent shall be paid
without demand, set off or deduction to Landlord at P.O. Box 862614,
Orlando, Florida 32886-2614 or such other address as Landlord directs in
writing.

 

2.2                               LATE CHARGES.  If any Base Rent or other payment due under
this Lease is not received by Landlord within ten (10) days of the due
date of such payment, Tenant shall pay, in addition to such payment a late
charge equal to the greater of (i) five percent (5.0%) of the payment
which is past due or (ii) Two Hundred Fifty and No/100 Dollars
($250.00).  If any payment due from
Tenant shall remain overdue for more than ten (10) days, interest shall
accrue daily on the past due amount from the date such amount was due until
paid or judgment is entered at a rate equivalent to the lesser of eighteen
percent (18%) per annum and the highest rate permitted by law.  Interest on the past due amount shall be in
addition to and not in lieu of the five percent (5.0%) late charge or any other
remedy available to Landlord (“Default Rate”).

 

2.3                                 ADDITIONAL RENT.  All charges payable by Tenant under the terms
of this Lease other than Base Rent are called “Additional Rent.”  Unless this Lease provides otherwise, all
Additional Rent shall be paid with the next monthly installment of Base Rent
and shall include all applicable sales or use taxes.  The term “Rent” shall mean Base Rent
and Additional Rent.

 

2.4                                 TAXES.

 

2.4.1                      Personal Property Taxes.  Commencing
upon the Phase I Commencement Date, Tenant shall pay, as and when due, all
taxes attributable to the personal property, trade fixtures, business,
occupancy, or sales of Tenant.

 

2.4.2                      Real Estate Taxes.  Commencing
upon the Phase I Commencement Date, Tenant shall pay, as and when due, all real
estate taxes, personal property taxes and other ad valorem taxes, and any other
levies, charges, local improvement rates, impositions and assessments
whatsoever assessed or charged against the Property and/or the Building, the
equipment and improvements therein contained which are part of the Building,
and including any amounts assessed or charged in substitution for or in lieu of
any such taxes (collectively, “Real Estate Taxes”), levied or assessed
against the Property and/or the Building by any lawful authority for each
calendar year or portion thereof during the period between the Phase I Commencement
Date and the expiration of the Term. 
Landlord shall provide Tenant with all tax bills which are the Tenant’s
responsibility hereunder and such payments shall be made by Tenant directly to
the taxing authorities prior to any delinquency.  Tenant shall provide Landlord with paid tax
receipts or, if not available, other proof of payment reasonably acceptable to
Landlord, 

 

3

 

on or
before the date that the Real Estate Taxes would be deemed to be delinquent
(i.e., the date that penalties would start to accrue).  If Tenant does not pay Real Estate Taxes by
the aforesaid date, Landlord shall have the right to pay the Real Estate Taxes
and Tenant shall reimburse Landlord within thirty (30) days of receipt of demand
for payment by Landlord.  The Real Estate
Taxes are to be prorated for any partial lease year occurring at the beginning
or end of the Term during the period in which the taxing authority assesses
Real Estate Taxes.  In the event that
Tenant does not pay Real Estate Taxes prior to delinquency for any calendar
year due to any act or omission of Tenant, then Landlord shall have the right
to thereafter elect to pay the Real Estate Taxes for the remainder of the Term
of the Lease; whereupon Tenant shall promptly reimburse Landlord within thirty
(30) days after written demand therefor from Landlord to Tenant.

 

2.4.3                        Contesting Taxes.  If Tenant
desires, as determined by Tenant in its reasonable business judgment, to
contest the validity or amount of any tax, assessment, levy, or other
governmental charge agreed to in this Lease to be paid by Tenant, Tenant shall
be permitted to do so, upon posting of adequate security or the payment of
amounts, all as may be required by Applicable Laws (as defined in Section 3.2
hereof), to prevent loss of title to the Property and the Building and after
giving Landlord prior written notice of Tenant’s intent to contest the taxes
for the applicable year.  So long as
Tenant complies with the foregoing, Landlord shall cooperate with Tenant (at no
expense to Landlord) and execute any document which may be reasonably necessary
for any such contest proceeding.  Nothing
herein shall be deemed to limit Landlord’s right to contest any tax,
assessment, levy or government charge imposed against the Property and/or the
Building, which right, with respect to ad valorem real property taxes, shall be
exercised by Landlord in its reasonable business judgment.  The foregoing restriction on Tenant’s ability
to contest the validity or amount of any tax, assessment, levy, or other
governmental charge agreed to in this Lease to be paid by Tenant shall only be
deemed to apply to Real Estate Taxes and shall not be deemed to apply to any
personal property taxes, which are payable by Tenant on its personalty in the
Premises.

 

2.4.4                        Receipts.  Upon written
request of Landlord, during the Term of this Lease, Tenant shall obtain and
deliver to Landlord paid receipts for all taxes, assessments, and other items
required under this Lease to be paid by Tenant.

 

2.4.5                        Exclusions.  Real Estate Taxes shall not include any
franchise, transfer, gains, inheritance, estate, mortgage recording, and income
taxes imposed upon Landlord.

 

2.4.6                        Separate
Parcel.  Landlord shall, at its
expense, apply for and diligently follow such procedures as are necessary to
have the Property (including the Building) taxed by the applicable governmental
authorities as a parcel separate from the other parcel(s) included in
Landlord’s tax bills, so that Tenant will be in a position to pay and/or
contest Real Estate Taxes on its own, subject to the terms of this Section 2.4.  If the Property and the Building are taxed or
assessed as a separate parcel, Landlord shall direct the tax authority to send
the tax bills for the Property and the Building directly to Tenant’s address
during the Term hereof.  If the Property
and/or the Building are not taxed or assessed as a separate parcel, then:  (a) Tenant’s share of Real Estate Taxes
shall be determined by multiplying such taxes or assessments in the entire tax
bill by a fraction, the numerator of which is the total value of the Property
and the Building and the denominator of which is the total value of all land
included in the tax bill, and Landlord shall

 

4

 

provide such
determination to Tenant in writing, together with a copy of the applicable tax
bill, no later than thirty (30) days prior to the due date of such Real Estate
Taxes for the applicable year.

 

2.4.7                        Tax
Credits.  Any tax credits or other municipal,
county, or state incentives received as part of the Governmental Incentives (as
defined in Section 11.24) or similar incentives shall inure to the benefit
of the Tenant.

 

2.5                                 ELECTRICITY.  Commencing upon the Phase I Commencement
Date, Tenant shall pay for all costs and fees incurred in connection with the
provision and use of electricity at the Building, including, without
limitation, the parking areas therefor, as separately metered in Tenant’s name.

 

2.6                                 OPERATING EXPENSES.

 

2.6.1                        Tenant Operating
Expenses.  Except as otherwise expressly set
forth in this Lease, from and after the Phase I Commencement Date, Tenant shall
be solely responsible, at Tenant’s sole cost and expense, for the maintenance,
operation, repair, replacement (regardless of whether such replacement is
required under any Applicable Law that was not in effect or not applicable to
the Premises or the Park on the Phase I Commencement Date) and administration
of the Building and the Property, including, without limitation: (i) water,
sewer, gas, and other utility charges (including electricity charges, as
provided above) for the Building and the Property; and (ii) window
washing, janitorial services (to be provided in the manner that such services
are customarily furnished in comparable office buildings in the area), rest
room supplies and other maintenance expenses in connection with the Building
(collectively, the “Tenant Operating Expenses”).  It is understood that Tenant may desire, at some point
during the Term, to maintain all or portions of the Building Systems (as
defined in Section 7.1) in lieu of Landlord providing such services
pursuant to Section 7.1 of this Lease. 
In such event, Landlord and Tenant shall negotiate in good faith
regarding (i) the Buildings Systems to be maintained by Tenant and the
reasonable performance standards relating thereto, (ii) the timing of any
such transition of maintenance obligations, and (iii) the reasonable and
appropriate adjustments of the operating expense and maintenance provisions of
this Lease.

 

2.6.2                        Landlord Operating
Expenses.  In addition, Tenant shall be
responsible to reimburse and/or pay Landlord for the following expenses: (i) insurance
that the Landlord is obligated or permitted to obtain under this Lease and any
deductible amount applicable to any claim made by the Landlord under such
insurance; (ii) ninety percent
(90%) of Landlord’s equitable allocation to the Building (which allocation is
based upon the duties associated with a “full service” lease) of wages
and benefits payable to those employees of Landlord and Landlord’s property
manager whose duties are directly connected with the property management of the
Building or the Property, including, without limitation, the operation and
maintenance thereof, which allocation shall not exceed $0.40 per rentable
square foot of the Building for calendar year 2008; (iii) the dues and assessments under any applicable deed
restrictions or declarations of covenants and conditions; (iv) landscaping,
ground maintenance and pest control for the Building and the Property; and (v) 
a management fee equal to three
percent (3%) of the

 

5

 

annual
Rent for the Building (collectively, the “Landlord Operating Expenses”).  Additionally, the cost of Landlord’s
Maintenance Obligations (as defined in Section 7.1) (excluding any costs
for capital improvements) shall also be included in Landlord Operating
Expenses.

 

2.6.3                        Payment
of Landlord Operating Expenses.  In
addition to the payment of Base Rent, commencing on the Phase I Commencement
Date, Tenant shall pay one hundred percent (100%) of the Landlord Operating
Expenses to Landlord.  On or before March 31st
of each calendar year, Landlord shall provide a good faith estimate of the
Landlord Operating Expenses for that calendar year (the “Estimate Statement”).  Tenant shall remit monthly one-twelfth (1/12th)
of the amount set forth in the Estimate Statement (the “Estimated Payment”)
as Additional Rent together with its payments of Base Rent; provided that Landlord
may invoice Tenant retroactively for the months of January through the
month of issuance of the Estimate Statement. 
On or before March 31st of each calendar year, Landlord
shall send a statement to Tenant detailing all actual Landlord Operating Expenses
for the prior calendar year (the “Landlord Operating Expense Statement”).  If the Landlord Operating Expense Statement
indicates that the total Estimated Payments made by Tenant during the preceding
year exceeded the actual Landlord Operating Expenses for such year, then, at
Landlord’s option (except upon the expiration of the Term, whereupon a refund
shall automatically be given, if applicable), Tenant shall be given either: (i) a
credit against its next due Estimated Payment, or (ii) a refund, in the
amount of the difference between the Estimated Payments made in the preceding
year and the actual Landlord Operating Expenses for such year.  If the Landlord Operating Expense Statement
indicates that the actual Landlord Operating Expenses exceeded the Estimated
Payments, then Tenant shall remit the difference to Landlord as Additional Rent within thirty (30) days after Tenant’s
receipt of the applicable Landlord Operating Expense Statement.  Landlord’s failure to provide a statement
shall not prejudice Landlord’s right to collect a shortfall or Tenant’s right
to receive a credit or refund for over payments.  Any obligation of Landlord or Tenant to remit
any overpayment or underpayment pursuant to this Section shall survive the
expiration of the Term or earlier termination of this Lease.

 

3.0                                 USE OF PROPERTY.

 

3.1                                 PERMITTED
USES.  Tenant may use the Premises only
for the following Permitted Use: general office (which includes, but is not
limited to, use of the Premises as a call, technology and operations center),
unless Landlord gives written consent in advance of any other use of the
Premises, which consent may be withheld in Landlord’s sole discretion.  Landlord represents that, to the best of its
knowledge, the Applicable Laws permit the Premises to be used for the Permitted
Use.  Tenant shall not create a nuisance
or use the Premises for any illegal or immoral purpose.

 

3.2                                 COMPLIANCE WITH
LAWS.  During the Term, Tenant shall
comply with all federal, state and local laws, ordinances, building
codes, and rules and regulations of governmental entities having
jurisdiction over the Property and/or the Building, including but not limited
to the Board of Fire Underwriters and the Americans with Disabilities Act (the “ADA”)
and all regulations and orders promulgated pursuant to the ADA (collectively, “Applicable

 

6

 

Laws”), and shall promptly
comply with all governmental orders and directives for the correction,
prevention, and abatement of any violation of Applicable Laws in, upon, or
connected with the Property and/or the Building, all at Tenant’s sole
expense.  Tenant warrants that all
improvements or alterations of the Premises made by Tenant or Tenant’s
employees, agents or contractors, either prior to Tenant’s occupancy of the
Premises or during the Term, will comply with all Applicable Laws.  Tenant will procure at its own expense all
permits and licenses required for the transaction of its business in the
Premises.  In addition, Tenant warrants
that its use of the Premises will be in strict compliance with all Applicable
Laws.  During the Term, Tenant shall, at
its sole cost and expense, make any modifications to the Premises, the Building
and/or the Property that may be required pursuant to any Applicable Laws.  Notwithstanding the foregoing to the
contrary, Landlord shall be solely responsible, at Landlord’s expense,
for making any modifications to the Premises, the Building and/or the Property
required as a result of Landlord’s failure to comply with Applicable Laws in
connection with Landlord’s obligations under the Work Letter.

 

3.3                                 HAZARDOUS
MATERIAL.  Throughout the Term,
Tenant will prevent the presence, use, generation, release, discharge, storage,
disposal, or transportation of any Hazardous Materials (as hereinafter defined)
on, under, in, above, to, or from the Premises, except that Hazardous Materials
may be used in the Premises as necessary for the customary maintenance of the
Premises provided that same are used, stored and disposed of in strict compliance
with Applicable Laws.  For purposes of
this provision, the term “Hazardous Materials” will mean and refer to
any wastes, materials, or other substances of any kind or character that are or
become regulated as hazardous or toxic waste or substances, or which require
special handling or treatment, under any Applicable Laws.

 

If Tenant’s activities at the
Premises or Tenant’s use of the Premises (a) result in a release of
Hazardous Materials that is not in compliance with Applicable Laws or permits
issued thereunder; (b) gives rise to any claim or requires a response
under Applicable Laws or permits issued thereunder; (c) causes a
significant public health effect; or (d) creates a nuisance, then Tenant
shall, at its sole cost and expense:  (i) immediately
provide verbal notice thereof to Landlord as well as notice to Landlord in the
manner required by this Lease, which notice shall identify the Hazardous
Materials involved and the emergency procedures taken or to be taken; and (ii) promptly
take all action in response to such situation required by Applicable Laws,
provided that Tenant shall first obtain Landlord’s approval of the
non-emergency remediation plan to be undertaken.

 

Tenant
shall at all times indemnify and hold harmless Landlord against and from any
and all claims, suits, actions, debts, damages, costs, losses, obligations,
judgments, charges and expenses (including reasonable attorneys’ fees) of any
nature whatsoever suffered or incurred by Landlord to the extent they were
caused by the following activities of Tenant at the Building and/or the
Property during the Term of this Lease and arise from events or conditions
which came into existence after the Phase I Commencement Date:  (i) any release, threatened release, or
disposal of any Hazardous Materials at the Building and/or the Property, or (ii) the
violation of any Applicable Laws at the Building and/or the Property,
pertaining to protection of the environment, public health and safety, air
emissions, water discharges, hazardous or toxic substances, solid or hazardous
wastes or occupational health and safety.

 

7

 

3.4                                 SIGNS AND
AUCTIONS.  Subject to the following provisions of this paragraph, Tenant shall be
entitled to two (2) signs on the exterior façade of the Building, and one (1) monument
sign outside of the Building.  Prior to
installation of the signs, Tenant shall submit a drawing of the proposed signs,
which shall detail the size, color, design, lighting and method of attachment
to the Building, to Landlord for approval, which shall not be unreasonably
withheld.  After Landlord has approved
Tenant’s signs, Tenant shall cause the signs to be manufactured at its sole
expense.  Landlord shall arrange for
installation of the signs, at Tenant’s expense, with the exact placement of the
signs subject to Landlord’s prior approval, which shall not be unreasonably
withheld.  Tenant shall not place any other signs on the
Building or Park except with the prior written consent of the Landlord,
including consent as to location and design, which may be withheld in Landlord’s
sole discretion.  Any and all such
approved signs shall be installed and shall be maintained by Tenant, at its
sole cost and expense and shall be in compliance with the Rules and Regulations
and all Applicable Laws.  Tenant shall be
responsible to Landlord for the installation, use, or maintenance of all signs
and any damage caused thereby.  Tenant
agrees to remove all signs prior to termination of the Lease and upon such
removal to repair all damage incident to such removal.  Landlord shall, at Landlord’s expense,
install directional and building identification signs at the entrances to the
Property.

 

3.5                                 ACCESS.

 

3.5.1                        Landlord’s Access. 
Landlord shall be entitled at all reasonable times and upon reasonable
notice to enter the Premises to examine them and to make such repairs,
alterations, or improvements thereto as Landlord is required by this Lease to
make or which Landlord considers necessary. 
Tenant shall not unduly obstruct any pipes, conduits, or mechanical or
other electrical equipment so as to prevent reasonable access thereto.  Landlord shall exercise its rights under this
section, to the extent possible in the circumstances, in such manner so as to
minimize interference with Tenant’s use and enjoyment of the Premises.  Landlord and its agents have the right to
enter the Premises at all reasonable times and upon reasonable notice to show
them to prospective purchasers, lenders, or anyone having a prospective
interest in the Building, and, during the last six months of the Term or any
renewal thereof, to show them to prospective tenants.  Landlord will have the right at all times to
enter the Premises without prior notice to Tenant in the event of an emergency
affecting the Premises.

 

3.5.2                        Tenant’s Access.  Tenant shall have access to the Premises
twenty-four (24) hours per day, seven (7) days per week, 365 days per
year, subject to Applicable Laws.

 

3.6                                 QUIET POSSESSION.  If Tenant pays all Rent and fully performs
all of its obligations under this Lease, Tenant shall be entitled to peaceful
and quiet enjoyment of the Premises for the Term without interruption or
interference by Landlord or any person claiming through Landlord.

 

3.7                                 INTENTIONALLY DELETED.

 

3.8                                 PARKING.  Tenant
shall have the right to use 515 parking spaces associated with the Building, as
shown on attached Exhibit A-1.  Additionally,
commencing on the Phase II

 

8

 

Commencement Date, Tenant shall have the right to use up to an
additional 105 parking spaces adjacent to Flagler Center 300, in the location
depicted on attached Exhibit A-1. 
Alternatively, if Nuvell Financial Services Corp. does not renew its
lease of Lakeside Four prior to the expiration thereof in September 2009,
Tenant shall have the option of using up to 105 parking spaces adjacent to
Lakeside Four, in the location depicted on attached Exhibit A-1, in lieu of using the
parking spaces associated with Flagler Center 300.  All motor vehicles (including all contents
thereof) shall be parked in such spaces at the sole risk of Tenant, its
employees, agents, invitees and licensees, it being expressly agreed and
understood that Landlord has no duty to insure any of said motor vehicles
(including the contents thereof), and that Landlord is not responsible for the
protection and security of such vehicles, or the contents thereof.

 

3.9                                 RULES AND
REGULATIONS.  Tenant shall observe all
reasonable rules and regulations established by Landlord from time to time
for the Building.  The rules and
regulations in effect as of the date hereof are attached to and made a part of
this Lease as Exhibit B.  Landlord will have the right at all times to
change and amend the rules and regulations in any reasonable manner as it
may deem advisable for the safety, care and operation or use of the Park or the
Premises.

 

3.10                           INSTALLATION OF
GENERATOR.  Tenant shall have the
right to install, at Tenant’s sole cost and expense, a generator for Tenant’s
exclusive use in the location specified on Exhibit A-2
attached hereto.  The size and type of
the generator shall be subject to Landlord’s prior written approval, which
shall not be unreasonably withheld. 
Tenant shall be responsible for installation of all necessary equipment
associated with the generator as well as any screening required by Landlord,
Applicable Laws or covenants and restrictions of record. Landlord shall have
the right to require and approve screening for such generator, but such
approval shall not be deemed to be a representation or warranty that the
screening complies with Applicable Law or covenants and restrictions of
record.   Tenant shall operate, maintain
and repair the generator, at Tenant’s sole expense, in a fully operable
condition and in compliance with the manufacturer’s specifications and all
Applicable Laws.  In the event that any
modification to the area in which the generator is installed, including
screening thereof, is at any time required by any Applicable Law or any covenant
or restriction of record, Tenant shall commence such modification within thirty
(30) days after receipt of notice thereof from Landlord or any governmental
agency and shall diligently pursue such modification to completion.  If Tenant fails to commence such modification
with such thirty (30) day period or diligently pursue such modification to
completion, Landlord shall be entitled to make such modifications and charge
the amount of such modifications to Tenant as Additional Rent.  Tenant shall be responsible for the cost of
any electricity used by the generator or its associated equipment.  On or before the final day of the Term,
Tenant shall remove the generator and its associated equipment from the
Property and repair any damage caused thereby. 
Tenant hereby agrees to indemnify, defend and hold Landlord harmless for
any and all liabilities, claims, damages, injuries or losses, including,
without limitation, all costs, expenses, court costs and reasonable attorney’s
fees imposed on Landlord by any person whomsoever caused by or resulting from
the installation, operation, maintenance, removal or repair of the generator or
associated equipment, except for any such liability, claim, damage, injury or
loss caused by Landlord, its employees, agents or contractors.

 

9

 

4.0                                 TENANT ALTERATIONS AND IMPROVEMENTS.

 

4.1                                 TENANT IMPROVEMENTS.  Landlord shall construct the Tenant
Improvements in accordance with the terms of Exhibit D attached hereto (the “Work Letter”).  If any improvements, modifications or
alterations, beyond those specified in the Work Letter, are required for Tenant’s
occupancy of the Premises, Tenant will be solely responsible for all associated
expenses.  After the Phase I Commencement
Date, if any improvements, modifications or alterations are required by any
governmental body or due to any Applicable Law as a result of Tenant’s use of
the Premises, Tenant will be solely responsible for all associated costs.

 

4.2                                 TENANT ALTERATIONS.  Tenant will not make or allow to be made any
alterations in or to the Premises without first obtaining the written consent
of Landlord, which consent may be granted or withheld in Landlord’s reasonable
discretion; provided, however, that Landlord’s consent shall not be required
for interior, nonstructural alterations which do not impact the Building
Systems and which cost less than $150,000.00 in the aggregate to perform each
alteration project, but Tenant shall notify Landlord of any such interior,
nonstructural alterations.  For alterations
that require Landlord’s consent, Landlord shall have ten (10) business
days within which to review any submission by Tenant to Landlord of the plans
and specifications therefor.  Landlord
may require Tenant to provide demolition and/or lien and completion bonds in
form and amount satisfactory to Landlord. 
All Tenant alterations will be accomplished in a good and workmanlike
manner at Tenant’s sole expense, in conformity with all Applicable Laws by a
licensed and bonded contractor approved in advance by Landlord, such approval
of contractor not to be unreasonably withheld or delayed.  All contractors performing alterations in the
Premises shall carry workers’ compensation insurance, commercial general
liability insurance, automobile insurance and excess liability insurance in
amounts reasonably acceptable to Landlord and shall deliver a certificate of
insurance evidencing such coverages to Landlord prior to commencing work in the
Premises.  Upon completion of any such
work, Tenant shall provide Landlord with “as built” plans, copies of all construction
contracts, and proof of payment for all labor and materials.  Any Tenant alterations to the Premises made
by or installed by either party hereto will remain upon and be surrendered with
the Premises and become the property of Landlord upon the expiration or earlier
termination of this Lease without credit to Tenant; provided, however,
Landlord, at it option, may require Tenant to remove any additions and/or
repair any alterations to restore the Premises to the condition existing at the
time Tenant took possession, with all costs of removal, repair, restoration, or
alterations to be borne by Tenant.  This
clause will not apply to moveable equipment, furniture or moveable trade
fixtures owned by Tenant, which may be removed by Tenant at the end of the Lease
Term if Tenant is not then in default and if such equipment and furniture are
not then subject to any other rights, liens and interests of Landlord.  Tenant will have no authority or power,
express or implied, to create or cause any construction lien or mechanics’ or
materialmen’s lien or claim of any kind against the Premises, the Park or any
portion thereof.  Tenant will promptly
cause any such liens or claims to be released by payment, bonding or otherwise
within thirty (30) days after request by Landlord, and will indemnify Landlord
against losses arising out of any such claim including, without limitation,
legal fees and court costs.  NOTICE IS
HEREBY GIVEN THAT LANDLORD WILL NOT BE LIABLE FOR ANY LABOR, SERVICES OR
MATERIAL FURNISHED OR TO BE FURNISHED TO TENANT, OR

 

10

 

TO ANYONE HOLDING THE PREMISES THROUGH OR UNDER TENANT, AND THAT NO
MECHANICS’ OR OTHER LIENS FOR ANY SUCH LABOR, SERVICES OR MATERIALS WILL ATTACH
TO OR AFFECT THE INTEREST OF LANDLORD IN THE PREMISES.  TENANT WILL DISCLOSE THE FOREGOING PROVISIONS
TO ANY CONTRACTOR ENGAGED BY TENANT PROVIDING LABOR, SERVICES OR MATERIAL TO
THE PREMISES.

 

5.0                                 INSURANCE AND INDEMNITY.

 

5.1                                 TENANT’S INSURANCE.

 

5.1.1.                     Tenant will throughout the Term (and any
other period when Tenant is in possession of the Premises) carry and maintain,
at its sole cost and expense, the following types of insurance, which shall
provide coverage on an occurrence basis, with respect to the Premises, in the
amounts specified with deductible amounts reasonably satisfactory to Landlord:

 

(a)                                  Commercial General Liability Insurance. 
Commercial general liability (“CGL”) insurance covering claims
arising from personal injury, death and property damage occurring in or about
the Premises, the Building and the Common Areas with minimum limits of
$1,000,000.00 per occurrence and $2,000,000.00 general aggregate.  The CGL policy shall include contractual
liability coverage of all liabilities arising pursuant to the Lease.

 

(b)                                 Comprehensive Automobile Liability Insurance. 
Comprehensive automobile liability insurance with a limit of not less
than $1,000,000.00 per occurrence for bodily injury, $500,000.00 per person and
$100,000.00 property damage or a combined single limit of $1,000,000 for both
owned and non-owned vehicles.

 

(c)                                  Excess Liability Insurance. 
Tenant shall also carry and maintain excess liability insurance with a
limit of not less than $3,000,000.00 per occurrence.

 

(d)                                 Property Insurance. 
Insurance of personal property, decorations, trade fixtures,
furnishings, equipment, alterations, leasehold improvements and betterments
made by Tenant on a replacement cost basis, with coverage equal to not less
than ninety percent (90%) of the full replacement value of all insured property.  In the event any casualty occurs, Tenant
agrees to pay the difference between the insurance coverage required to be
maintained by this subparagraph 5.1(d) and an insurance policy offering
coverage of one hundred percent (100%) of the full replacement value of the
insured property.  Tenant’s policy will
also include business interruption/extra expense coverage in sufficient
amounts.

 

(e)                                  Workers’ Compensation and Employers’
Liability Insurance.  Workers’ Compensation Insurance covering all
employees of Tenant, as required by the laws of the State of Florida, and
Employers’ Liability coverage subject to a limit of no less than $500,000
for bodily injury by accident per accident/$500,000 for bodily injury by
disease per employee/$1,000,000 for bodily injury by disease policy limit.

 

11

 

5.1.2                        Policy Form.  All policies referred to above
shall:  (i) be taken out with
insurers licensed to do business in Florida having an A.M Best’s rating of A-, Class IX,
or otherwise approved in advance by Landlord; (ii) name Landlord and
Landlord’s property manager as additional insureds; (iii) be
non-contributing with, and shall apply only as primary and not as excess to any
other insurance available to the Landlord or any mortgagee of Landlord; and (iv) contain
an obligation of the insurers to notify the Landlord by certified mail not less
than thirty (30) days prior to any material change, cancellation, or
termination of any such policy. 
Certificates of insurance on Acord Form 25-S on or before the Phase
I Commencement Date and thereafter at times of renewal or changes in coverage
or insurer, and if required by a mortgagee, copies of such insurance policies
certified by an authorized officer of Tenant’s insurer as being complete and
current, shall be delivered to the Landlord promptly upon request.  If (a) the Tenant fails to take out or
to keep in force any insurance referred to in this Section 5.1, or should
any such insurance not be approved by either the Landlord or any mortgagee, and
(b) the Tenant does not commence and continue to diligently cure such
default within forty-eight (48) hours after written notice by the Landlord to
Tenant specifying the nature of such default, then the Landlord has the right,
without assuming any obligation in connection therewith, to procure such
insurance at the sole cost of the Tenant, and all outlays by the Landlord shall
be paid by the Tenant to the Landlord without prejudice to any other rights or
remedies of the Landlord under this Lease. 
The Tenant shall not keep or use in the Premises any article that may be
prohibited by any fire or casualty insurance policy in force from time to time
covering the Building.

 

5.2                                 LANDLORD’S INSURANCE.  During the Term, Landlord will carry and maintain
the following types of insurance: (i) property insurance on the Building
covering “All Risks” perils in an amount equal to the full replacement cost of
the Building (excluding any property with respect to which the Tenant and other
tenants are obliged to insure pursuant to Section 5.1 or similar sections
of their respective leases); and (ii) commercial general liability
insurance with respect to the Landlord’s operations in the Park

 

5.3                                 RELEASE AND WAIVER OF SUBROGATION
RIGHTS.  The parties hereto, for
themselves and anyone claiming through or under them, hereby release and waive
any and all rights of recovery, claim, action or cause of action, against each
other, their respective agents, directors, officers and employees, for any loss
or damage to all property, whether real, personal or mixed, located in the
Building, by reason of any cause against which the releasing party is actually
insured or, regardless of the releasing party’s actual insurance coverage,
against which the releasing party is required to be insured pursuant to the
provisions of Sections 5.1 or 5.2.  This
mutual release and waiver shall apply regardless of the cause or origin of the
loss or damage, including negligence of the parties hereto, their respective
agents and employees except that it shall not apply to willful conduct.  Each party agrees to provide the other with
reasonable evidence of its insurance carrier’s consent to such waiver of
subrogation upon request.  This Section 5.3
supersedes any provision to the contrary which may be contained in this Lease.

 

5.4                                 INDEMNIFICATION OF THE PARTIES.

 

5.4.1                        Tenant’s Indemnity. 
Tenant hereby agrees to indemnify, defend and hold harmless Landlord
from and against any and all liability for any loss, injury or damage,
including,

 

12

 

without limitation, consequential damage including,
without limitation, all costs, expenses, court costs and reasonable attorneys’
fees, imposed on Landlord by any person whomsoever that occurs (i) in the
Premises, except for any such loss, injury or damage that is caused by or
results from the gross negligence or willful misconduct of Landlord, its
employees or agents; or (ii) anywhere in the Park outside of the Premises
as a result of the negligence or willful misconduct of Tenant, its employees,
agents or contractors.

 

5.4.2                        Landlord’s Indemnity. 
Landlord hereby indemnifies Tenant from, and agrees to hold Tenant
harmless against, any and all liability for any loss, injury or damage,
including, without limitation, all costs, expenses, court costs and reasonable
attorneys’ fees, imposed on Tenant by any person whomsoever, that occurs in the
Building or anywhere on the Park and that is caused by or results from the
negligence or willful misconduct of Landlord or its employees or agents except
that Landlord shall only be obligated to indemnify Tenant for damages arising
from Landlord’s negligence or willful misconduct in the Premises.

 

The provisions of this Section 5.4 shall
survive the expiration or earlier termination of this Lease.

 

6.                                       DAMAGE, DESTRUCTION AND CONDEMNATION

 

6.1                                 DESTRUCTION OR DAMAGE TO PREMISES.  If the Premises are at any time damaged or
destroyed in whole or in part by fire, casualty or other causes, Landlord shall
have sixty (60) days from such damage or destruction to determine and inform
Tenant whether Landlord will restore the Premises to substantially the
condition that existed immediately prior to the occurrence of the
casualty.  If Landlord elects to rebuild,
Landlord shall complete such repairs to the extent of insurance proceeds within
one hundred and eighty (180) days from the end of the sixty (60) day
period.  If such repairs have not been
completed within that 180-day period, and Tenant desires to terminate the Lease
as a result thereof, then Tenant must notify Landlord prior to Landlord’s
completion of the repairs of Tenant’s intention to terminate this Lease.  Landlord shall then have ten (10) days
after Landlord’s receipt of written notice of Tenant’s election to terminate to
complete such repairs (as evidenced by a certificate of completion).  If Landlord does complete such repairs prior
to the expiration of such ten-day cure period, Tenant shall have no such right
to terminate this Lease.  Tenant shall,
upon substantial completion by Landlord, promptly and diligently, and at its
sole cost and expense, repair and restore any improvements to the Premises made
by Tenant to the condition which existed immediately prior to the occurrence of
the casualty.  If, in Landlord’s
reasonable estimation, the Premises cannot be restored within two hundred forty
(240) days of such damage or destruction, then either Landlord or Tenant may
terminate this Lease as of a date specified in such notice, which date shall
not be less than thirty (30) nor more than sixty (60) days after the date such
notice is given.  Until the restoration
of the Premises is complete, there shall be an abatement or reduction of Base
Rent in the same proportion that the square footage of the Premises so damaged
or destroyed and under restoration bears to the total square footage of the
Premises, unless the damaging event was caused by the negligence or willful
misconduct of Tenant, its employees, officers, agents, licensees, invitees,
visitors, customers, concessionaires, assignees, subtenants, contractors or
subcontractors, in which event there shall be no such abatement.

 

13

 

Notwithstanding the foregoing provisions of this
paragraph, if damage to or destruction of the Premises in excess of fifty
percent (50%) of the value of the Premises shall occur within the last year of
the Term, as the same may be extended as provided hereinafter, the obligation
of Landlord to restore the Premises shall not arise unless (i) Landlord,
at its sole option, elects to restore such work; (ii) Landlord, at its
sole option, elects to provide Tenant with the opportunity of extending the
Term for an additional period so as to expire five (5) years from the date
of the completion by Landlord of the repairs and restoration to the Premises;
and (iii) Tenant gives written notice to Landlord within thirty (30) days
after Landlord’s request that Tenant agrees to such extension.  Such extension shall be on the terms and
conditions provided herein, if an option to extend this Lease remains to be
exercised by Tenant hereunder, or under the terms prescribed in Landlord’s
notice, if no such further extension period is provided for herein.  Upon receipt of such notice from Tenant,
Landlord agrees to repair and restore the Premises within a reasonable
time.  If Tenant fails to timely extend
the Term as provided herein, Landlord at its option shall have the right to
terminate this Lease as of the date of the damaging event, or to restore the
Premises and the Lease shall continue for the remainder of the then unexpired
Term, or until the Lease is otherwise terminated as provided herein.

 

6.2                                 CONDEMNATION.

 

6.2.1                        Total or
Partial Taking. 
If the whole of the Premises (provided that if 60% or more of the
Premises are taken, the Tenant may deem that all of the Premises are taken), or
such portion thereof as will make the Premises unusable, in Landlord’s
judgment, for the purposes leased hereunder, shall be taken by any public
authority under the power of eminent domain or sold to public authority under
threat or in lieu of such taking, the Term shall cease as of the day possession
or title shall be taken by such public authority, whichever is earlier (“Taking
Date”), whereupon the rent and all other charges shall be paid up to the
Taking Date with a proportionate refund by Landlord of any rent and all other
charges paid for a period subsequent to the Taking Date.  If less than the whole of the Premises, or
less than such portion thereof as will make the Premises unusable as of the
Taking Date, is taken, Base Rent and other charges payable to Landlord shall be
reduced in proportion to the amount of the Premises taken.  If this Lease is not terminated, Landlord
shall repair any damage to the Premises caused by the taking to the extent
necessary to make the Premises reasonably tenantable within the limitations of
the available compensation awarded for the taking (exclusive of any amount
awarded for land).

 

6.2.2                        Award.  All compensation awarded or
paid upon a total or partial taking of the Premises or Building including the
value of the leasehold estate created hereby shall belong to and be the
property of Landlord without any participation by Tenant; Tenant shall have no
claim to any such award based on Tenant’s leasehold interest.  However, nothing contained herein shall be
construed to preclude Tenant, at its cost, from independently prosecuting any
claim directly against the condemning authority in such condemnation proceeding
for damage to, or cost of removal of, stock, trade fixtures, furniture, and
other personal property belonging to Tenant; provided, however, that no such
claim shall diminish or otherwise adversely affect Landlord’s award or the
award of any mortgagee.

 

14

 

7.                                       MAINTENANCE AND REPAIRS.

 

7.1                                 LANDLORD’S OBLIGATIONS. 
Landlord shall keep the foundation, roof and structural portions of
exterior walls of the improvements on the Building, and the HVAC, electrical,
mechanical, plumbing, fire, and life safety systems serving the Building
(collectively, the “Building Systems”), and the entrances, sidewalks,
parking areas and other facilities from time to time comprising the Common
Areas, in good order, condition and repair (“Landlord’s Maintenance
Obligations”).  In addition, but
subject nevertheless to any applicable waiver or subrogation, Landlord may
charge to Tenant as Additional Rent the cost of any repairs of damage to the
roof, foundation or structural portions or walls caused by Tenant’s acts or
omissions.  The cost of Landlord’s
Maintenance Obligations (excluding any costs for capital improvements) shall be
included in Landlord Operating Expenses. 
Landlord shall not be obligated to maintain or repair windows, doors,
plate glass or the surfaces of walls of the Premises.  Landlord shall not be obligated to make any
repairs under this Section 7.1 until a reasonable time after receipt of a
written notice from Tenant specifying the need for such repairs and thereafter
Landlord shall commence such repairs within five (5) business days.

 

7.2                                 TENANT’S OBLIGATIONS.

 

7.2.1                        Except as specifically provided to the
contrary in Section 7.1 above, Tenant shall at its expense throughout the
Term and all renewals and extensions thereof, maintain the Building and the
Property, including, without limitation, the interior walls and
ceilings, electric light fixtures, bulbs, tubes and tube casings, doors,
windows, floor and wall coverings, loading areas, levelers, plumbing fixtures,
entrances, sidewalks, corridors, parking areas and other facilities from time
to time comprising the Building and the Property (as well as the Tenant’s
furniture, fixtures, equipment and other personal property in the Building), in
good order, condition and repair as befitting a comparable office building in
Jacksonville, Florida.  Landlord shall
extend to Tenant the benefit from warranties on such items, if any, that have
been made by Landlord’s contractors or the manufacturer of such items.  Tenant acknowledges and agrees that Landlord
shall have no obligation to perform any maintenance, repair, replacement or
other structural or non-structural alterations in or to the Building except as
expressly set forth in Sections 6 and 7.1.

 

7.2.2                        All of Tenant’s obligations to maintain and
repair shall be accomplished at Tenant’s sole expense.  If Tenant fails to maintain and repair the
Building and/or the Property as required by this Section 7.2.2, Landlord
may, on ten (10) days’ prior notice (except that no notice shall be
required in case of emergency), enter the Building and perform such maintenance
or repair on behalf of the Tenant.  In
such cases, Tenant shall reimburse Landlord immediately upon demand for all
costs incurred in performing such maintenance or repair plus an administration
fee equal to 5% of such costs or expenses.

 

7.3                                 CONDITION UPON TERMINATION.  Upon the termination of the Lease, Tenant
shall surrender the Premises to Landlord, broom clean and in the same condition
as received except for ordinary wear and tear which Tenant was not otherwise
obligated to remedy under any provision of this Lease.  However, Tenant shall not be obligated to
repair any damage that Landlord is required to repair under Section 7.1.  Tenant shall repair, at Tenant’s expense, any
damage to the

 

15

 

Premises caused by the removal of any of Tenant’s personal property,
including but not limited to furniture, machinery and equipment.  In no event, however, shall Tenant remove any
of the following materials or equipment without Landlord’s prior written
consent: any power wiring or power panels; lighting or lighting fixtures;
millwork and cabinetry; wall coverings; drapes, blinds or other window
coverings; carpets or other floor coverings; heaters, air conditioners, or any
other heating or air conditioning equipment; fencing or security gates;
plumbing fixtures, water fountains; or other similar building operating
equipment and decorations.

 

8.                                       DEFAULT AND REMEDIES:

 

8.1                                 DEFAULT BY TENANT.  The following
will be events of default by Tenant under this Lease:

 

(a)                                  Failure to pay when due any installment of Rent or any other payment
required pursuant to this Lease; provided that Landlord shall give Tenant
notice of the first such instance of non-payment in each calendar year and
Tenant shall have a period of ten (10) days after receipt thereof to cure
such non-payment before a default shall be deemed to have occurred;

 

(b)                                 The filing of a petition for bankruptcy or insolvency under any applicable
federal or state bankruptcy or insolvency law; an adjudication of bankruptcy or
insolvency or an admission that it cannot meet its financial obligations as
they become due, or the appointment or a receiver or trustee for all or
substantially all of the assets of Tenant; the foregoing shall also apply to all
Guarantors;

 

(c)                                  A transfer in fraud of creditors or an assignment for the benefit of
creditors, whether by Tenant or any Guarantor;

 

(d)                                 The filing or imposition of a lien against the Property, the Building or
the Park as a result of any act or omission of Tenant and the failure of Tenant
to satisfy or bond the lien in its entirety within twenty (20) days thereafter;

 

(e)                                  The liquidation, termination or dissolution of Tenant or any Guarantor,
or, if Tenant or any Guarantor is a natural person, the death of Tenant or such
Guarantor;

 

(f)                                    Failure to cure the breach of any non-monetary provision of this Lease
within twenty (20) days after written notice thereof to Tenant; provided,
however, that if such breach can not be cured within such 20 day period using diligent
efforts and Tenant promptly commenced efforts to cure such breach upon receipt
of Landlord’s written notice thereof, then such cure period shall be extended
for so long as Tenant continues to use diligent efforts to cure, not to exceed
a total of sixty (60) days from the date of Landlord’s notice; and

 

(g)                                 Failure to deliver, maintain or restore the Security Deposit pursuant to Section 11.2
hereof.

 

16

 

8.2                                 REMEDIES.  In the event of any default hereunder by
Tenant, the Landlord shall have the following rights and remedies without
prejudice to any other rights which it has pursuant to this Lease or at law or
in equity, which are cumulative and not alternative:

 

(a)                                  Landlord may
terminate this Lease by notice to Tenant and retake possession of the Premises
for Landlord’s account.  Tenant shall
then quit and surrender the Premises to Landlord.  Tenant’s liability under all of the
provisions of this Lease shall continue notwithstanding any expiration and
surrender, or any re-entry, repossession, or disposition hereunder, including
to the extent legally permissible, payment of all Rent and other charges until
the date on which the Term would have expired but for such termination.  If Landlord so elects, Rent shall be
accelerated and Tenant shall pay Landlord damages in the amount of any and all
sums that would have been due for the lesser of:  (i) two (2) years from the date of
termination of the Lease by Landlord; and (ii) the remainder of the
Term.  Landlord shall use good faith
efforts to relet the Premises, but shall not be obligated to give preference to
the Premises over other available space in the Park.  Landlord may grant any concessions of Rent,
and agree, at Tenant’s expense, to paint or make any special repairs,
alterations, and decorations for any new Tenant, as it may deem advisable in
its sole and absolute discretion.  All
Rent received by Landlord as a result of reletting the Premises, or any portion
thereof, shall be credited towards accelerated Rent collected by Landlord.

 

(b)                                 Landlord may
remedy or attempt to remedy any default of the Tenant under this Lease for the
account of the Tenant and to enter upon the Premises for such purposes.  No notice of the Landlord’s intention to
perform any such obligation of Tenant need be given the Tenant unless expressly
required by this Lease.  Landlord shall
not be liable to the Tenant for any loss or damage caused by acts of the
Landlord in remedying or attempting to remedy such default and the Tenant shall
pay to the Landlord all expenses incurred by the Landlord in connection with
remedying or attempting to remedy such default. 
Any expenses incurred by Landlord shall accrue interest from the date of
payment by Landlord until repaid by Tenant at the Default Rate.

 

8.3                                 COSTS.  Tenant shall pay to Landlord on demand all
fees and costs incurred by Landlord, including attorneys’ fees and costs,
(whether incurred in preparation for or at trial, on appeal, or in bankruptcy),
incurred by Landlord in enforcing any of the obligations of Tenant under this
Lease.  In addition, upon any default by
Tenant, Tenant shall also be liable to Landlord for the expenses to which
Landlord may be put in re-entering the Premises, reletting the Premises and
putting the Premises into the condition necessary for such reletting (including
attorneys’ fees and disbursements, marshall’s fees, and brokerage fees, in so
doing), and any other expenses reasonably incurred by Landlord.  In the event of any dispute between Landlord
and Tenant arising under the Terms of this Lease, the prevailing party in such
dispute shall be entitled to recover reasonable attorneys’ fees and costs from
the non-prevailing party.

 

8.4                                 WAIVER.  No delay or omission by Landlord in
exercising a right or remedy shall exhaust or impair the same or constitute a
waiver of, or acquiescence to, a default.

 

8.5                                 DEFAULT BY
LANDLORD.  In the event of any default by
Landlord, Tenant’s exclusive remedy shall be an action for damages, but prior
to any such action Tenant will give Landlord written notice specifying such
default with particularity, and Landlord shall have a period

 

17

 

of thirty (30) days following the date of such notice
in which to commence the appropriate cure of such default.  Unless and until Landlord fails to commence
and diligently pursue the appropriate cure of such default after such notice or
complete same within a reasonable period of time, Tenant shall not have any
remedy or cause of action by reason thereof. 
Notwithstanding any provision of this Lease, Landlord shall not at any
time have any personal liability under this Lease so long as Landlord maintains
equity in the Building of at least Eighty Percent (80%) of the fair market
value thereof (“Minimum Equity”), and Tenant’s sole remedy with respect
thereto shall be a suit for damages and not a termination of the Lease.  In the event of any breach or default by
Landlord of any term or provision of this Lease, Tenant agrees to look solely
to the equity or interest then-owned by Landlord in the Building, and in no
event shall any deficiency judgment be sought or obtained against Landlord
provided that Landlord maintains Minimum Equity.

 

9.                                       PROTECTION OF LENDERS

 

9.1                                 SUBORDINATION AND
ATTORNMENT.  This Lease shall be
subject and subordinated at all times to the terms of each and every ground or
underlying lease which now exists or may hereafter be executed affecting the
Premises under which Landlord shall claim, and to the liens of each and every
mortgage and deed of trust in any amount or amounts whatsoever now or hereafter
existing encumbering the Premises, Building or the Park, and to all
modifications, renewals and replacements thereto without the necessity of
having further instruments executed by Tenant to effect such
subordination.  Tenant, upon demand,
shall further evidence its subordination by executing a subordination and
attornment agreement in form and substance acceptable to Landlord and its mortgagee
or ground lessor, which subordination and attornment agreement may provide, at
the option of such mortgagee or ground lessor, that so long as no default or
event which with the passing of time or giving of notice would constitute a
default exists under this Lease, the peaceable possession of Tenant in and to
the Premises for the Term shall not be disturbed in the event of the
foreclosure of the subject mortgage or termination of the subject ground or
underlying lease affecting the Premises. 
If Landlord’s interest in the Building and/or Park is acquired by any
ground lessor, mortgagee, or purchaser at a foreclosure sale or transfer in
lieu thereof, Tenant shall attorn to the transferee of or successor to Landlord’s
interest in the Lease, Premises, Building or Park and recognize such transferee
or successor as Landlord under this Lease. 
Notwithstanding the foregoing, any mortgagee under any mortgage shall
have the right at any time to subordinate any such mortgage to this Lease on
such terms and subject to such conditions as the mortgagee in its discretion
may consider appropriate.

 

9.2                                 ESTOPPEL
CERTIFICATES.  Within fifteen (15)
days of receipt of written request from Landlord, any lender, or at the request
of any purchaser of the Building, Tenant shall deliver an estoppel certificate,
attaching a true and complete copy of this Lease, including all amendments
relative thereto, and certifying with particularity, among other things, (i) a
description of any renewal or expansion options, if any; (ii) the amount
of rent currently and actually paid by Tenant under this Lease; (iii) that
the Lease is in full force and effect as modified; (iv) Tenant is in
possession of the Premises; (v) stating whether either Landlord or Tenant
is in default under the Lease and, if so, summarizing such default(s); and (vi) stating
whether Tenant or Landlord has claims against the other party and, if so,
specifying with particularity the nature and amount of such claim.  Landlord shall likewise deliver a similar

 

18

 

estoppel
certificate within fifteen (15) days of the request of Tenant, any lender or
prospective lender of Tenant, or assignee approved by Landlord.

 

9.3                                 TENANT’S FINANCIAL
CONDITION.  Within ten (10) days
after written request from Landlord, Tenant shall deliver to Landlord such
financial statements as are reasonably required by Landlord to verify the net
worth of Tenant (the “Financial Statements”).  In addition, Tenant shall deliver to any
lender designated by Landlord all Financial Statements required by such
lender.  Tenant represents and warrants
to Landlord that each such Financial Statement is a true and accurate statement
as of the date of such statement.  All
Financial Statements shall be confidential and shall be used only for the
purposes set forth herein.  If there is a
material, adverse change in Tenant’s financial condition, Tenant will give
prompt notice of such change to Landlord. 
Notwithstanding the foregoing to the contrary, Tenant shall not have any
obligation to furnish the Financial Statements set forth above for so long as
Tenant is a publicly traded company on a stock exchange which is subject to
regulation by the Securities and Exchange Commission.

 

10.                                 TELECOMMUNICATIONS.  All telephone and telecommunications
services desired by Tenant shall be ordered and utilized at the sole expense of
Tenant.  All installations of
telecommunications equipment and wires shall be accomplished pursuant to plans
and specifications approved in advance in writing by Landlord.  Unless Landlord otherwise requests or
consents in writing, all of Tenant’s telecommunications equipment shall be and
remain solely in the Premises and the telephone closet(s) on the floor(s) on
which the Premises is located, in accordance with rules and regulations
adopted by Landlord from time to time. 
Landlord shall have no responsibility for the maintenance of Tenant’s
telecommunications equipment, including wire; nor for any wiring or other
infrastructure to which Tenant’s telecommunications equipment may be
connected.  Tenant agrees that, to the
extent any such service is interrupted, curtailed or discontinued from any
cause whatsoever, Landlord shall have no obligation or liability with respect
thereto unless such interruption is caused by the negligence or willful
misconduct of Landlord or its agents, employees or contractors.

 

Any and all telecommunications
equipment installed in the Premises by or on behalf of Tenant, including wiring
or other facilities for telecommunications transmittal, shall be removed prior
to the expiration or earlier termination of the Term, by Tenant at its sole
cost or, at Landlord’s election, by Landlord at Tenant’s sole cost.  Landlord shall have the right upon written
notice to Tenant given no later than ten (10) days prior to the expiration
of the Term or at any time after a default under this Lease, to require Tenant
to abandon and leave in place, without additional payment to Tenant or credit
against Base Rent or Additional Rent, any and all telecommunications wiring and
related infrastructure, or selected components thereof, located in the
Building.

 

Tenant
hereby shall have the right to install, maintain and remove on the roof of the
Building satellite dishes or other similar devices, such as antenna, for the purpose
of receiving and sending radio, television, computer, telephone or other
communication signals (and including the installation of all necessary cables,
wires and transformers), together with the right to the use of the conduits,
pipes, risers and shafts within the Premises for the installation of cables,
wiring and other equipment therein in connection with the operation of all such
devices

 

19

 

(the foregoing
facilities that are installed by or on behalf of Tenant are hereby called the “Tenant’s
Communications Equipment”, which shall be deemed to include such similar
equipment to be installed by any sublessee, provided, however, that, in no
event may Landlord or Tenant allow any third parties (e.g., subtenants and
licensees) to utilize the roof of the Building for the installation,
maintenance and operation of Tenant’s Communication Equipment or other similar
equipment, other than bona fide subtenants occupying all or a portion of the
interior of the Premises pursuant to a permitted sublease or a sublease which
has been approved by Landlord), subject to Tenant’s obligation to comply with
all Applicable Laws with respect to the installation, maintenance and operation
of the Tenant’s Communication Equipment or such other similar equipment.  Tenant shall advise the Landlord at least
ten (10) business days in advance of the planned installation of
Tenant’s Communications Equipment, and shall comply with any reasonable request
of Landlord with respect to the installation thereof, which shall include,
without limitation, the following requirements: (i) such installation be
done by the roofing company which provides the roof warranty for the Building
and in such a manner so as to not invalidate such warranty; and (ii) the
Tenant’s Communications Equipment be screened so that the same shall not be
visible from the street-level, in Landlord’s reasonable judgment.  Tenant shall be responsible for any damage to
the Building caused by installing or maintaining the Tenant’s Communications
Equipment.  At the expiration or earlier
termination of this Lease, Tenant, at its expense, shall remove the Tenant’s
Communications Equipment.  Any work
required to restore the roof or any other part of the Building or Property from
any damage occasioned by the installation, maintenance or removal of the Tenant’s
Communications Equipment shall be borne by Tenant.  The installation, maintenance and removal of
the Tenant’s Communications Equipment shall be subject to the obligations imposed
upon the Tenant in this Lease with respect to the Tenant’s use and occupancy of
the Premises; provided, however, that there shall be no additional
consideration due from the Tenant with respect to the rights granted to the
Tenant pursuant to this Section.

 

In the event that
telecommunications equipment, wiring and facilities installed by or at the
request of Tenant within the Premises causes interference to equipment used by
another party, Tenant shall assume all liability related to such interference,
Tenant shall use reasonable efforts, and shall cooperate with Landlord and
other parties, to promptly eliminate such interference.  In the event that Tenant is unable to do so,
Tenant shall substitute alternative equipment that remedies the situation.  If such interference persists, Tenant shall
discontinue the use of such equipment, and, at Landlord’s discretion, remove
such equipment according to foregoing specifications.

 

11.                                 MISCELLANEOUS
PROVISIONS.

 

11.1                           LANDLORD’S LIABILITY;
CERTAIN DUTIES.  As used in the
Lease, the term “Landlord” means only the owner of the fee title to the
Building or the leasehold estate under a ground lease of the Building at the
time in question.  Each landlord is
obligated to perform the obligations of Landlord under this Lease only during
the time such landlord owns such interest or title.  Any landlord who transfers its title or
interest is relieved of all liability with respect to the obligations of
Landlord under this Lease to be performed on or after the date of transfer, provided
that such transfer is not for the primary purpose of avoiding such
obligations.  However, each

 

20

 

landlord
shall deliver to its transferee all funds previously paid by Tenant if such
funds have not yet been applied under the terms of this Lease.

 

11.2                            SECURITY DEPOSIT.  Within fifteen (15) business day of
the execution of this Lease, Tenant shall remit to Landlord a security deposit
in the amount of $1,500,000.00 in cash or other form acceptable to Landlord in
its sole discretion (“Security Deposit”); provided, however, that so
long as (i) Tenant has not been in default beyond any applicable notice
and cure periods, and (ii) Tenant’s Financial Statements reflect EBITDA of
at least $10,000,000.00 for the four financial quarters preceding any such
reduction date, commencing on the first day of the thirteenth (13th)
full calendar month of the Term, and continuing on each succeeding anniversary
thereof until fully depleted, the Security Deposit shall be reduced by the
amount of $300,000.00, and Landlord shall return such amount of the Security
Deposit being held by Landlord to Tenant within thirty (30) days after each
anniversary of the Phase I Commencement Date. 
The Security Deposit represents security for the faithful performance
and observance by Tenant of each and every term of this Lease.  Landlord may apply all or part of the
Security Deposit to any unpaid Rent or other charges due from Tenant or to cure
any other default of Tenant.  The
Security Deposit shall not constitute liquidated damages.  If Landlord uses any part of the Security
Deposit, Tenant shall restore the Security Deposit to its full amount within
ten (10) days after notice from Landlord. No interest shall accrue to or
for the benefit of Tenant on the Security Deposit.  Landlord shall not be required to keep the
Security Deposit separate from its other accounts, and no trust relationship is
created with respect to the Security Deposit. 
Landlord shall not be obligated to return the Security Deposit to Tenant
upon the expiration or earlier termination of the Lease unless and until all of
the following events occur: (i) the payment in full of all Rent due
pursuant to the Lease; (ii) the repair of any and all damage to the
Premises; and (iii) the reconciliation of Operating Expenses for the year
in which the Lease expires or terminates.

 

Landlord agrees that Tenant may provide the Security
Deposit in the form of an unconditional and irrevocable standby letter of
credit in favor of Landlord having a term of not less than one (1) year (“Letter
of Credit”).  Any such Letter of
Credit shall:  (i) be in form and
substance acceptable to Landlord in Landlord’s sole discretion; (ii) be
issued by a national banking association maintaining offices in the United
States of America acceptable to Landlord in Landlord’s sole discretion (“Bank”);
(iii) be available for draw by Landlord at an office of the Bank located
in the State of Florida; (iv) be governed by the International Standby
Practices set by the International Chamber of Commerce; (v) provide that
Landlord shall be entitled to draw upon the Letter of Credit upon demand,
without prior notice to Tenant, upon presentation to the Bank of the Letter of
Credit, or a copy thereof, by mail, courier or in person together with a
statement by Landlord that Tenant is in uncured default under this Lease; (vi) permit
partial drawings; and (vii) if the Letter of Credit contains an expiration
date, then, prior to or upon such expiration date, the Letter of Credit shall
automatically renew on the same terms and conditions so that the Letter of
Credit continuously remains in full force and effect.

 

11.3                           INTERPRETATION.  The captions of the Articles or Sections of
this Lease are to assist the parties in reading this Lease and are not a part
of the terms or provisions of this Lease. 
Whenever required by the context of this Lease, the singular shall
include the plural and the plural 

 

21

 

shall include the
singular.  The masculine, feminine and
neuter genders shall each include the other. 
In any provision relating to the conduct, acts or omissions of Tenant
the term “Tenant” shall include Tenant’s agents, employees, contractors,
invitees, successors or others using the Building or Park with Tenant’s
expressed or implied permission.  This
Lease will not be construed more or less favorably with respect to either party
as a consequence of the Lease or various provisions hereof having been drafted
by one of the parties hereto.

 

11.4                           INCORPORATION OF PRIOR
AGREEMENTS; MODIFICATIONS.  This Lease is
the only agreement between the parties pertaining to the lease of the Building
and no other agreements either oral or otherwise are effective unless embodied
herein.  All amendments to this Lease
shall be in writing and signed by all parties. 
Any other attempted amendment shall be void.

 

11.5                           NOTICES.  Any notice or document (other than rent)
required or permitted to be delivered by the terms of this Lease shall be
delivered by:  (i) hand delivery; (ii) certified
mail, return receipt requested; or (iii) guaranteed overnight delivery
service.  Notices to Tenant shall be
delivered to the address specified in the introductory paragraph of this Lease,
except that upon Tenant’s taking possession of the Premises, the Premises shall
be Tenant’s address for notice purposes. 
Notices to Landlord’s shall be delivered to Legal Department, 10151
Deerwood Park Boulevard, Building 100, Suite 330, Jacksonville, Florida
32256, with a copy to Flagler Development
Company, LLC, Attn: Flagler Center Property Manager, 12724 Gran Bay Parkway
W., Suite 140, Jacksonville, Florida 32258.  All notices shall be effective upon delivery
or attempted delivery during normal business hours.  Either party may change its notice address
upon written notice to the other party, given in accordance herewith by an
authorized officer, partner, or principal.

 

11.6                           RADON GAS NOTICE.  Radon is a naturally occurring radioactive
gas that, when it has accumulated in a building in sufficient quantities, may
present health risks to persons who are exposed to it over time.  Levels of radon that exceed federal and state
guidelines have been found in buildings in Florida.  Additional information regarding radon and
radon testing may be obtained from your county public health unit.

 

11.7                           WAIVERS.  All waivers must be in writing and signed by
the waiving party.  Landlord’s failure to
enforce any provision of this Lease or its acceptance of Rent shall not be a
waiver and shall not prevent Landlord from enforcing that provision or any
other provision of this Lease in the future. 
No statement on a payment check from Tenant or in a letter accompanying
a payment check shall be binding on Landlord. 
Landlord may, with or without notice to Tenant, negotiate such check
without being bound to the conditions of such statement.

 

11.8                           NO RECORDATION.  Tenant shall not record this Lease or any
memorandum of lease without prior written consent from Landlord.

 

11.9                           JOINT AND SEVERAL
LIABILITY.  All parties signing this
Lease as Tenant shall be jointly and severally liable for all obligations of
Tenant.

 

11.10                     FORCE
MAJEURE.  The performance by either party
to this Lease of its

 

22

 

obligations
(except the payment of Rent or other sums of money) shall be excused by delays
attributable to events beyond that party’s control for a period of time that is
sufficient for the party to perform its obligations after the cessation of the
Force Majeure event acting in a diligent, commercially reasonable manner.  Events beyond a party’s control include, but
are not limited to, acts of the other party, acts of God, war, civil commotion,
labor disputes, strikes, fire, flood or other casualty, failure of power,
shortages of labor or material, government regulation or restriction (including
extraordinary delay in the issuance of any permit) and unusually inclement
weather conditions.  Events beyond a
party’s control shall not include changes in economic or market conditions, or
financial or internal problems of the non-performing party, or problems that
can be satisfied by the payment of money.

 

11.11                     EXECUTION OF
LEASE.  Submission or preparation of this
Lease by Landlord shall not constitute an offer by Landlord or option for the
Premises, and this Lease shall constitute an offer, acceptance or contract only
as expressly specified by the terms of this Section 11.11.  In the event that Tenant executes this Lease
first, such action shall constitute an offer to Landlord, which may be accepted
by Landlord by executing this Lease, and once this Lease is so executed by
Landlord, such offer may not be revoked by Tenant and this Lease shall become a
binding contract.  In the event that
Landlord executes this Lease first, such action shall constitute an offer to
Tenant, which may be accepted by Tenant only by delivery to Landlord of a fully
executed copy of this Lease, together with a fully executed copy of any and all
guaranty agreements and addendums provided that in the event that any party other
than Landlord makes any material or minor alteration of any nature whatsoever
to any of said documents, then such action shall merely constitute a
counteroffer, which Landlord, may, at Landlord’s election, accept or
reject.  Notwithstanding that the Phase I
Commencement Date and/or the Phase II Commencement Date may occur and the Term
may commence after the date of execution of this Lease, upon delivery and
acceptance of this Lease in accordance with the terms of this Lease, this Lease
shall be fully effective, and in full force and effect and valid and binding
against the parties in accordance with, but on and subject to, the terms and
conditions of this Lease.

 

11.12                     AUTHORITY.

 

11.12.1   Tenant’s
Authority.  As a material inducement
to Landlord to enter into this Lease, Tenant (and, individually each party
executing this Lease on behalf of Tenant), intending that Landlord rely
thereon, represents and warrants to Landlord that:

 

(i)                                     Tenant and the
party executing on behalf of Tenant are fully and properly authorized to
execute and enter into this Lease on behalf of Tenant and to deliver this Lease
to Landlord;

 

(ii)                                  This Lease
constitutes a valid and binding obligation of Tenant, enforceable against
Tenant in accordance with the terms of this Lease;

 

(iii)                               Tenant is duly
organized, validly existing and in good standing under the laws of the state of
Tenant’s organization and has full power and authority to enter into this

 

23

 

Lease,
to perform Tenant’s obligations under this Lease in accordance with the terms
of this Lease, and to transact business in the state in which the Premises are
located; and

 

(iv)                              The execution
of this Lease by the individual or individuals executing this Lease on behalf
of Tenant, and the performance by Tenant of Tenant’s obligation under this
Lease, have been duly authorized and approved by all necessary corporate or
partnership action, as the case may be, and the execution, delivery and
performance of this Lease by Tenant is not in conflict with Tenant’s bylaws or
articles of incorporation (if a corporation), agreement of partnership (if a
partnership), and other charters, agreements, rules or regulations
governing Tenant’s business as any of the foregoing may have been supplemented
or amended in any manner.

 

11.12.2  Landlord’s Authority.  As a material inducement to Tenant to enter
into this Lease, Landlord (and, individually each party executing this Lease on
behalf of Landlord), intending that Tenant rely thereon, represents and warrants
to Tenant that:

 

(i)                                     Landlord and
the party executing on behalf of Landlord are fully and properly authorized to
execute and enter into this Lease on behalf of Landlord and to deliver this
Lease to Tenant;

 

(ii)                                  This Lease
constitutes a valid and binding obligation of Landlord, enforceable against
Landlord in accordance with the terms of this Lease;

 

(iii)                               Landlord is
duly organized, validly existing and in good standing under the laws of the
state of Landlord’s organization and has full power and authority to enter into
this Lease, to perform Landlord’s obligations under this Lease in accordance
with the terms of this Lease, and to transact business in the state in which
the Premises are located; and

 

(iv)                              The execution of this
Lease by the individual or individuals executing this Lease on behalf of
Landlord, and the performance by Landlord of Landlord’s obligation under this
Lease, have been duly authorized and approved by all necessary corporate or
partnership action, as the case may be, and the execution, delivery and
performance of this Lease by Landlord is not in conflict with Landlord’s bylaws
or articles of incorporation (if a corporation), agreement of partnership (if a
partnership), and other charters, agreements, rules or regulations governing
Landlord’s business as any of the foregoing may have been supplemented or
amended in any manner

 

11.13  FLORIDA LAW. 
This Lease shall be governed by the laws of the State of Florida.

 

11.14  COUNTERPART. 
This Lease may be executed in multiple counterparts, each counterpart of
which shall be deemed an original and any of which shall be deemed to be
complete of itself and may be introduced into evidence or used for any purpose
without the production of the other counterpart or counterparts.

 

11.15  HOLDING OVER. 
If Tenant remains in possession of the Premises after expiration of the
Term without Landlord’s written consent and without any express agreement
between the

 

24

 

parties on an extension of the Term, Tenant shall
be a tenant at sufferance as provided in § 83.04, Florida Statutes, and such
tenancy shall be subject to the provisions thereof, except that Base Rent
during the holdover period shall be one hundred fifty percent (150%) of the
final payment of Base Rent in effect during the final month of the Term.  Nothing in this paragraph shall be construed
as the consent of Landlord to Tenant’s possession of the Premises after the
expiration of the Term.

 

11.16                     TIME IS OF THE
ESSENCE.  Time is of the essence of this
Lease and all provisions contained herein.

 

11.17                     APPROVAL OF PLANS AND
SPECIFICATIONS.  Neither review nor
approval by or on behalf of Landlord of any Tenant’s plans nor any plans and
specifications for any Tenant Alterations or any other work shall constitute a
representation or warranty by Landlord, any of Landlord’s beneficiaries, the
managing agent of the Building or Park or any of their respective agents,
partners or employees that such plans and specifications either (i) are
complete or suitable for their intended purpose, or (ii) comply with
Applicable Laws, it being expressly agreed by Tenant that neither Landlord, nor
any of Landlord’s beneficiaries, nor the managing agent of the Building or Park
nor any of their respective agents, partners or employees assume any
responsibility or liability whatsoever to Tenant or to any other person or
entity for such completeness, suitability or compliance.

 

11.18                     RELATIONSHIP.  Landlord and Tenant disclaim any intention to
create a joint venture, partnership or agency relationship.

 

11.19                     BROKER’S FEE.  Tenant
covenants, represents and warrants that Tenant had no dealings or negotiations
with any broker or agent in connection with the consummation of this
Lease.  Tenant agrees to indemnify
Landlord against any loss, liability, or expense  (including attorney’s fees and costs) arising
out of claims for fees or commissions from anyone with whom Tenant has dealt in
connection with the lease of the Premises. 
Landlord agrees to indemnify Tenant against any loss, liability, or
expense (including attorney’s fees and costs) arising out of claims for fees or
commissions from anyone other than Broker with whom Landlord has dealt in
connection with the lease of the Premises.

 

11.20                     WAIVER OF TRIAL BY
JURY.  LANDLORD
AND TENANT EACH HEREBY KNOWINGLY, INTENTIONALLY AND VOLUNTARILY WAIVE TRIAL BY
JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY EITHER OF THE PARTIES
HERETO AGAINST THE OTHER ON ANY MATTER WHATSOEVER ARISING OUT OF OR IN ANY WAY
CONNECTED WITH THIS LEASE.

 

11.21                     RIDERS AND
EXHIBITS.  All Riders, Addenda and
Exhibits attached hereto and executed both by Landlord and Tenant shall be
deemed to be a part hereof and are hereby incorporated.

 

11.22                     TENANT ASSIGNMENT.  Tenant will not assign this Lease, in whole
or in part, or sublease the Premises, in whole or in part, without the prior
written consent of Landlord, which

 

25

 

consent will not be unreasonably withheld,
subject to Landlord’s right of recapture set forth below, and in no event will
Tenant be released from any obligation or liability under this Lease following
any such assignment or sublease.  No
sublessee of the Premises or any portion thereof, may further assign or
sublease its interest in the Premises or any portion thereof.  Tenant agrees to pay Landlord the greater of (i) Two
Hundred and Fifty Dollars and 00/100 ($250.00); or (ii) the actual legal
fees and expenses incurred by Landlord, in connection with the review by
Landlord of Tenant’s requested assignment or sublease pursuant to this Section,
together with any legal fees and disbursements incurred in the preparation
and/or review of any documentation, within thirty (30) days of invoice for
payment thereof.  If the rent due and
payable by any assignee or sublessee under any permitted assignment or sublease
exceeds the Rent payable under this Lease for such space, Tenant will pay to
Landlord all such excess rent and other excess consideration within ten (10) days
following receipt thereof by Tenant. 
Notwithstanding the foregoing, Tenant may assign this Lease to an
affiliate at any time without Landlord’s consent; provided that the assignee
has financial strength substantially equivalent to Tenant.

 

Within fifteen (15) days after
Landlord’s receipt of Tenant’s request for Landlord’s consent to a proposed
assignment or sublease, excluding any assignment or sublease to an affiliate of
Tenant, Landlord shall have the right to require Tenant to reconvey to Landlord
that portion of the Premises which Tenant is seeking to assign or sublet.  Tenant shall reconvey that portion of the
Premises in consideration of Landlord’s release of Tenant from all future Rent
and other obligations, which would not otherwise survive termination of the
Lease, with respect to the portion of the Premises so reconveyed.  Any such reconveyance shall be evidenced by
an agreement reasonably acceptable to Landlord and Tenant in form and
substance.

 

11.23                     LANDLORD
ASSIGNMENT.  Landlord will have the right
to sell, transfer or assign, in whole or in part, its rights and obligations
under this Lease.  Any such sale,
transfer or assignment will operate to release Landlord from any and all
liability under this Lease arising after the date of such sale, assignment or
transfer.

 

11.24                     GOVERNMENTAL
INCENTIVES.  Notwithstanding
anything to the contrary contained herein, this Lease and all of Tenant’s
obligations hereunder are conditional and contingent upon Tenant’s receipt of
approval of Qualified Targeted Industry Tax Refund and Quick Response Training
Program incentives by the Jacksonville Economic Development Commission (JEDC),
the Jacksonville City Council, and the Office of Tourism, Trade, and Economic
Development (OTTED) of the State of Florida in amount and form acceptable to
Tenant in Tenant’s reasonable discretion (the “Governmental Incentives”).  If
the Governmental Incentives are not obtained by February 15, 2008, then
Tenant shall have the right to terminate this Lease by delivering written
notice to Landlord on or before February 22, 2008, whereupon Landlord and
Tenant shall have no further obligation or liability to each other pursuant to
this Lease except for those obligations which expressly survive the expiration
of the Lease.

 

[SIGNATURES
ON FOLLOWING PAGE]

 

26

 

IN
WITNESS WHEREOF, Tenant and Landlord have caused this Lease to be duly executed
as of the date first above written.

 

SIGNED, SEALED AND DELIVERED

IN THE PRESENCE OF:

 

	
   

  	
   

  	
  Website Pros, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   /s/ Cynthia Israel

  	
   

  	
   

  	
  By:

  	
    /s/ David L. Brown

  
	
  Name:

  	
    Cynthia Israel

  	
   

  	
   

  	
  Print Name:

  	
   David L. Brown**

  
	
   

  	
   

  	
  Its:

  	
    CEO

  
	
   

  	
   

  	
   

  
	
  /s/ Gary Cox

  	
   

  	
   

  	
  Date:

  	
    December 3, 2008

  
	
  Name:

  	
  Gary Cox

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Corporate
  Seal)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FDG Flagler Center I LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:     Flagler
  Development Company, LLC,

  a Florida limited liability company, its

  Managing Member

  
	
   /s/ James A. Hoener

  	
   

  	
   

  	
   

  
	
  Name:

  	
   James A. Hoener

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
    /s/ Keith A. Tickell

  
	
   

  	
   

  	
                Keith
  A. Tickell

  
	
   

  	
   

  	
                Its
  Vice President

  
	
   /s/ Susan Blount

  	
   

  	
   

  	
   

  
	
  Name:

  	
   Susan Blount

  	
   

  	
   

  	
  Date:

  	
    December 4, 2008

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Company
  Seal)

  
											

 

**  If the individual signing the Lease is other
than the Chief Executive Officer, President or Vice President of the Company,
please attach Corporate Resolutions authorizing his/her signature on behalf of
the Company.  Thank you.

 

27

 

EXHIBIT A

 

PROPERTY LEGAL DESCRIPTION

 

PARCELS 8, 9 AND 10 OF “GRAN PARK AT JACKSONVILLE TRACT D REPLAT”
ACCORDING TO THE PLAT THEREOF, AS RECORDED IN PLAT BOOK 55, PAGE 69, OF THE
PUBLIC RECORDS OF DUVAL COUNTY, FLORIDA.

 

A-1

 

EXHIBIT A-1

 

PARKING AREA

 

A-1-1

 

EXHIBIT A-2

 

LOCATION
OF GENERATOR

 

A-2-1

 

EXHIBIT
B

 

RULES
AND REGULATIONS

 

1.             In the event of an emergency situation in the Park, such
as an injury to a person, damage to property, persons in the Park acting in a
suspicious or threatening manner, bomb threat, water leak or fire, any tenant
who is aware of such emergency shall notify the Property Manager immediately.

 

2.             No tenant shall place any
additional locks or similar devices upon any door, except for vaults and safes
previously approved by the Property Manager. 
No lock shall be changed except with prior written consent of Property
Manager, which shall not be unreasonably withheld, conditioned or delayed.  All locks shall be compatible with the
Property Manager’s master key.  Upon the
termination of a lease, the tenant shall surrender all keys to its Premises to
the Property Manager.

 

3.             Window coverings, which must be of
such shape, color, material, quality and design as may be reasonably prescribed
by the Property Manager, may not be installed without the Property Manager’s
prior written consent which shall not be unreasonably withheld, conditioned or
delayed. Landlord may withhold its consent if such coverings are visible from
the exterior of the Premises.

 

4.             No tenant shall obstruct the
sidewalks, entrances, lobbies, elevators, elevator lobbies, halls, or stairways
in or about any building in the Park, and shall not use any such area for
storage or for any purpose other than ingress and egress.  No tenant shall utilize any mechanical or
electrical room for storage purposes.

 

5.             No tenant shall create or maintain
a nuisance nor make or permit any noises or odors that are reasonably
objectionable to another tenant to emanate from or about its Premises.

 

6.             Each tenant shall observe and obey
all parking and traffic regulations, which may include among other things speed
limits, stop signs, yielding to pedestrians at all times, no parking zones, tow
away zones or parking decals, from time to time established by the Property
Manager.  No vehicle shall be parked in a
manner that utilizes more than one parking space.

 

7.             No tenant shall make any
suite-to-suite canvass to solicit business from other tenants in the Park.  Property Manager may prohibit any other
solicitation in the Park and require registration, satisfactory identification
and credentials from all persons seeking access to any part of the Building or
Park.  No tenant shall conduct or cause
to be conducted any auctions or sales in its Premises or in the Park.

 

8.             No tenant shall display any sign,
letter, picture, notice, advertisement or the like, whether temporary or
permanent, in any common area, including lobbies and elevator lobbies, or in a
manner that is visible from outside the Premises.

 

9.             No tenant may use the name of the
Park or any building situated therein for any purpose 

 

B-1

 

other
than that of the business address of Tenant, and shall not use any picture or
likeness of the Park or any building situated therein in any circulars,
notices, advertisements or correspondence without Landlord’s prior written
consent.

 

10.           No tenant shall bring any
animal (excepting only dogs trained to assist handicapped persons) into the
Park.  Bicycles, unicycles, motorcycles,
mopeds, Segways, skateboards, scooters and all other vehicles are prohibited in
or about the buildings and sidewalks of the Park.

 

11.           No tenant shall waste electricity or
water.  Each tenant shall cooperate with
the reasonable requests of Landlord’s property manager to utilize electricity
and water in its Premises efficiently. 
Each tenant shall ensure that no electrical circuit within its Premises
is overloaded.  No tenant shall adjust
any common HVAC controls other than room thermostats installed for specific
use.  No tenant shall tie, wedge or
otherwise fasten open any water faucet or outlet.  No tenant shall prop open any common corridor
doors or exterior doors of any building.

 

12.           Tenant shall not overload any floor
and shall not install any heavy safes, business machines, files or other heavy
equipment without obtaining the approval of Landlord’s property manager.

 

13.           No tenant shall deface or damage any
property of another tenant or property that is part of the Park, including but
not limited to the buildings, fixtures and equipment.

 

14.           Smoking is prohibited in each
building, within twenty-five feet of any building entrance, and in the Park
common areas, except for smoking areas designated by the Property Manager.

 

15.           Each tenant shall use all
improvements, equipment and fixtures within the buildings and common areas of
the Park, including but not limited to restrooms, elevators, stairways,
hallways, lobby, sidewalks, parking lots and landscape areas, in the manner and
for the purposes for which they are designed. 
Each tenant shall be responsible for any damage caused by its failure to
do so.

 

16.           No machinery or apparatus other than
computers, copiers, facsimile machines, paper shredders and other small office
equipment shall be operated in the tenant’s Premises or anywhere in the Park
without prior written approval of Landlord’s property manager (the “Property
Manager”), which shall not be unreasonably withheld, conditioned or
delayed.  No explosives, articles deemed
hazardous because of flammability, or other materials of an intrinsically
hazardous nature shall be brought into any building in the Park.

 

All
references to tenant in these Rules and Regulations shall include the
employees, agents, contractors, licensees or invitees of the tenant.

 

B-2

 

EXHIBIT
C

 

 COMMENCEMENT AGREEMENT

 

THIS COMMENCEMENT AGREEMENT is made and entered
into as of                 ,
200    , by and between FDG Flagler Center I LLC (“Landlord”)
and                                (“Tenant”) with respect to that certain Lease
Agreement between Landlord and Tenant dated as of                       ,
200     (“Lease”), for the premises located at                                   , Florida 32       (“Premises”).

 

Landlord and Tenant hereby confirm that the Phase
I Commencement Date for the Phase I Premises is                     ,
200    .

 

IN WITNESS WHEREOF, Landlord and Tenant have
executed this document as of the first date set forth in the first paragraph
above.

 

 

	
   

  	
  FDG Flagler Center I LLC

  
	
   

  	
   

  
	
   

  	
  By:  Flagler
  Development Company, LLC, its

  Managing Member

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
  Print
  Name:

  	
   

  	
   

  	
  Print
  Name:

  	
   

  
	
  As Its

  	
   

  	
   

  	
  As Its

  	
   

  	
  President

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  Date:

  	
   

  
													

 

C-1

 

EXHIBIT D

 

WORK LETTER

 

1.             Landlord shall construct the
improvements, including, but not limited to, cabling, sound masking, power
generator, uninterruptible
power supply, security system and special purpose HVAC, set forth in the
Final Plans (as hereinafter defined) (the “Tenant Improvements”) and pay
the cost of the Tenant Improvements up to, but not exceeding, $36.49 per
rentable square foot of the Premises, the amount of which is agreed to be
$4,098,045.94 (the “Allowance”). 
The parties agree that no portion of the Allowance is available to be
used by Tenant for the cost of any furniture, moving expenses (other than for
the relocation to the Premises of Tenant’s generator), or other similar
non-construction items Tenant may desire to be placed within the Premises, and
that all such items shall be at Tenant’s sole cost and expense.  Tenant may contract for certain special
purpose improvements as set forth in Tenant’s Plans (which may be paid for by
the Allowance).  Any Tenant contracted
improvements will be coordinated with the Landlord in accordance with the
provisions of paragraph 5 below.

 

In the
event that the cost of the Tenant Improvements exceeds the Allowance, then the
entire amount of such excess (the “Excess”) shall be Tenant’s sole
liability and Tenant shall pay the full amount of the Excess to Landlord as
Additional Rent, together with all sales tax due thereon, within thirty (30)
days after Tenant’s receipt of Landlord’s invoice for the Excess.

 

2.                                      All Tenant Improvements
shall be performed and completed by Landlord’s contractor in accordance with
the Final Plans (as hereinafter defined) and at the sole cost and expense of
Tenant, subject to the Allowance.  All
mechanical, structural, electrical, plumbing and fire sprinkler engineering
required to furnish the Tenant Improvements requested by Tenant subsequent to
Tenant’s approval of the Drawings (as hereinafter defined), shall be done by
Landlord’s engineers at Tenant’s expense subject to the Allowance.

 

3.                                      Tenant has
produced its basic layout drawings (“Tenant’s Plans”) to Landlord and
are attached to this Lease as Exhibit D-1.

 

If
Tenant’s Plans indicate that Tenant shall be in violation of any floor load
requirements, Landlord shall so notify Tenant within 15 business days after
receipt of Tenant’s Plans, specifying all such violations, and Tenant shall
correct such violations and resubmit Tenant’s Plans within 5 business days
thereafter.  If Landlord does not notify
Tenant within such time period, Tenant’s Plans shall thereafter be deemed to be
in full compliance of all floor load requirements as required under the
Lease.  Landlord shall at its expense
then cause its architect to produce the construction drawings and its
mechanical (sprinkler, air conditioning, heating, electric and plumbing)
drawings covering all mechanical elements of the Tenant Improvements (together
the “Drawings”).  Landlord shall
submit the Drawings to Tenant for Tenant’s approval no later than thirty-five
(35) business days after Landlord’s receipt from Tenant of Tenant’s Plans, and,
within an 

 

D-1

 

additional twenty (20)
business days thereafter, shall submit an itemized budget (the “Budget”)
for the Tenant Improvements and a statement specifying any “long lead time
items” included as part of the Tenant Improvements and the alternatives which
will avoid such delay.  Tenant shall
approve or disapprove the Drawings, Budget and, if included, the statement
within five (5) business days of their receipt.

 

4.                                     (a)                                  If Tenant approves the
Budget or approves a Tenant Improvement item which Landlord has specified as a
cause of delay, then Tenant shall be responsible for the cost of the Tenant
Improvement as shown in the Budget in excess of the Allowance and there shall
be no abatement of Rent due to any such delay (provided the delay is not caused
by the intentional or negligent act or omission of Landlord, its agents,
employees, or contractors).  If the cost
of the Tenant Improvement as shown in the Budget shall exceed the Allowance,
then upon completion Tenant shall deposit with Landlord such excess together
with Tenant’s approval of the Budget.

 

(b)                                 If Tenant fails to
either approve or disapprove the Drawings, Budget or, if included, the
statement, within 5 business days of receipt thereof, such item shall be deemed
approved.  If the Drawings, Budget or
statement are disapproved, Tenant shall have 5 business days to submit revised
Tenant’s Plans to Landlord and Landlord shall then have 15 business days to
submit revised Drawings and a revised Budget and, if necessary, a revised
statement.  Landlord shall not
unreasonably refuse to satisfy any objections of Tenant to the Drawings, Budget
and statement and Tenant shall not unreasonably withhold its approval.  The review and revision of the Drawings,
Budget and statement shall continue until approved by Tenant.  The approved Drawings, Budget and statement
(if any) are collectively referred to herein as the “Final Plans”.

 

5.                                     Upon no less than three
(3) business days prior written notice to Landlord, and provided such
early entry will not interfere with Landlord’s completion of the Tenant
Improvements, Landlord shall permit Tenant and Tenant’s agents and contractors
to enter said Premises prior to the Phase I Commencement Date in order that
Tenant may do such other work as may be required by Tenant to make said
Premises ready for Tenant’s use and occupancy thereof (“Fit-Up Work”).  Any such entry into and occupation of the
premises by Tenant shall be deemed to be under all of the terms, covenants,
conditions and provisions of the Lease except as to the covenant to pay Rent,
and Landlord shall not be liable in any way for any injury, loss or damage to
any Fit-Up Work prior to the Phase I Commencement Date, unless directly caused
by an act or omission of Landlord, its agents, employees or contractors.  Landlord shall provide reasonable security to
protect the Fit-Up Work.

 

6.                                     If Substantial
Completion, as hereinafter defined, shall be delayed due to any act or omission
of Tenant or Tenant’s Agents (including, but not limited to, (i) any
delays due to Change Orders, or (ii) any delays by Tenant in the
submission of plans, drawings, specifications or other information or in
approving any working drawings or estimates or in giving any authorizations or
approvals, or (iii) Tenant’s interference with the progress of the Tenant
Improvements during any time that Tenant is given access to the Premises)
(each, a “Tenant Delay”), then Substantial Completion shall be deemed to
have occurred on the date when they would have been ready but for such Tenant
Delay.  “Substantial Completion” shall mean
the completion by Landlord of the construction of the Tenant Improvements in
substantial accordance with the Final Plans in a good 

 

D-2

 

and
workmanlike manner, and with the only additional construction to be effected
being Punch List Items, as hereinafter defined. 
Landlord shall have no obligation to attempt to mitigate, through
expediting the prosecution of any work or changing the scope of the work or
otherwise, the actual or presumed effects of a Tenant Delay on Landlord’s
ability to achieve Substantial Completion; provided, however, that at Tenant’s
request and with a written agreement by Tenant to pay any additional costs
incurred by Landlord resulting therefrom, Landlord shall use all reasonable
efforts to accelerate the performance of the work to mitigate the effects of
any Tenant Delay.

 

7.                                     If, prior to the Phase
I Commencement Date, Tenant shall require improvements or changes (individually
or collectively, “Change Orders”) to the Premises in addition to, revision
of, or substitution for the Tenant Improvements, Tenant shall deliver to
Landlord for Landlord’s approval, plans and specifications for such Change
Orders.  If Landlord does not approve of
the plans for Change Orders, Landlord shall advise Tenant of the revisions
required.  In addition to any other items
reasonably required by Landlord, Landlord’s revisions may be based upon any
other items reasonably required by Landlord, Landlord’s revisions may be based
upon whether the plans and specifications: (i) affect or are not
consistent with the base structural components or systems of the Building, (ii) are
visible from outside the Premises, (iii) affect safety, (iv) have or
could have the effect of increasing Operating Expenses, or (v) in Landlord’s
judgment, are not consistent with quality and character of the Project.  Tenant shall revise and redeliver the plans
and specifications to Landlord within five (5) business days of Landlord’s
advice or Tenant shall be deemed to have abandoned its request for such Change
Orders.  Tenant shall pay for all
preparations and revisions of plans and specifications, and the net costs of
the construction of all change Orders, subject to the Allowance.

 

8.                                     The Premises shall be
conclusively presumed to be in satisfactory condition on the Phase I
Commencement Date except for any minor or insubstantial details of
construction, mechanical adjustment or decoration which remain to be performed,
the non-performance of which do not materially interfere with Tenant’s use of
the Premises (“Punch List Items”) and of which Tenant gives Landlord
notice within thirty (30) days after the Phase I Commencement Date specifying
such details with reasonable particularity which details Landlord shall repair
within sixty (60) days of receipt of such notice.

 

D-3

 

RIDER NUMBER 1 TO
LEASE

 

dated               ,
2007

 

between FDG
Flagler Center I LLC, as Landlord,

and Website Pros, Inc.,
as Tenant

 

OPTION TO RENEW

 

1.             Landlord hereby grants Tenant the option
to renew (the “Renewal Option”) the initial Term (not to include, for
purposes of this Rider only, any Renewal Term, as hereinafter defined) for two (2) additional
terms of five (5) years (each, a “Renewal Term”), commencing as of
the date immediately following the expiration of the then existing Term, such
option to be subject to the covenants and conditions hereinafter set forth in
this Rider.  If Tenant duly exercises its
right to the Renewal Term, Landlord may elect that Tenant shall execute a lease
on Landlord’s then-current lease form, to be applicable to the Renewal
Term.  Following expiration of the
Renewal Term as provided herein, Tenant shall have no further right to renew or
extend the Lease.

 

2.             Tenant shall give Landlord written notice (the “Renewal
Notice”) of Tenant’s election to exercise its Renewal Option not later than
three hundred sixty five (365) days prior to the expiration of the then
existing Term of the Lease; provided that Tenant’s failure to give the Renewal
Notice by said date, whether due to Tenant’s oversight or failure to cure any
existing defaults or otherwise, shall render the Renewal Option null and void.

 

3.             Tenant shall not be permitted to exercise any Renewal
Option at any time during which Tenant is in default under the Lease, subject
to applicable notice and grace periods (if any).  If Tenant fails to cure any default under the
Lease prior to the commencement of the Renewal Term, subject to applicable
notice and grace periods, the Renewal Term shall be immediately canceled,
unless Landlord elects to waive such default, and Tenant shall forthwith
deliver possession of the Premises to Landlord as of the expiration or earlier
termination of the initial Term of the Lease.

 

4.             Tenant shall be deemed to have accepted the Premises in “as-is”
condition as of the commencement of the Renewal Term, subject to any other
repair and maintenance obligations of Landlord under the Lease, it being
understood and agreed that Landlord shall have no additional obligation to
renovate or remodel the Premises or any portion of the Building as a result of
Tenant’s renewal of the Lease.

 

5.             The covenants and conditions of the Lease in force
during the initial Term, as the same may be modified from time to time, shall
continue to be in effect during the Renewal Term, except that the “Base Rent”
for the Renewal Term shall be at the rate then prevalent in Jacksonville,
Florida for similar properties, but in no event shall such rate be less than
the Base Rent for the year immediately preceding the first year of such Renewal
Term, and shall escalate annually at the rate of three percent (3%).

 

1

 

6.             Tenant’s Renewal Option shall not
be transferable by Tenant, except in conjunction with a permissible transfer in
accordance with the applicable provisions of the Lease.

 

2Exhibit 10.1

 

MUTUAL RELEASE AND WAIVER AGREEMENT

 

This MUTUAL
RELEASE AND WAIVER AGREEMENT (the “Release”),
is made and entered into as of July 19, 2007 (the “Effective Date”), by and between
ACTIVIDENTITY CORPORATION, a Delaware corporation (the “Company”) and JASON HART, MICHAEL SMITH
and EQUITY PARTNERS TWO PTY LTD (collectively, the “Former Protocom Shareholders”). The Company and each of the
Former Protocom Shareholders are sometimes referred to herein individually as a
“Party” and collectively as the “Parties”.

 

W I T N E S S E T H

 

WHEREAS,
the Company, the Former Protocom Shareholders and Peter Johnson (as replaced by
Quentin Jones) (the “Sellers’ Representative”),
entered into that certain Stock Purchase Agreement (the “Stock Purchase Agreement”), dated as of July 26,
2005, pursuant to which the Company acquired the outstanding capital stock (the
“Acquisition”) of Protocom
Development Systems Pty. Ltd. (“Protocom”). Capitalized
terms that are not otherwise defined herein shall have the meanings ascribed to
such terms as set forth in the Stock Purchase Agreement;

 

WHEREAS,
pursuant to Sections 2.02 and 2.07 of the Stock Purchase Agreement, the Company
agreed to issue up to an additional 2,100,000 shares of its Common Stock to the
Former Protocom Shareholders under an earn-out provision if Protocom achieved
certain revenue targets during the one-year period ended June 30, 2006
(the “Earnout”);

 

WHEREAS,
based on the Company’s calculation of the qualifying revenues that are credited
toward the Earnout, the Company has concluded that the revenue targets have not
been met and no additional consideration under the Earnout is owed to the
Former Protocom Shareholders;

 

WHEREAS,
the Sellers’ Representative has demanded that the full Earnout amount be paid
to the Former Protocom Shareholders and has threatened to file suit against the
Company (the “Earnout Dispute”);

 

WHEREAS,
the Parties desire to settle the outstanding disputes, including the Earnout
Dispute, related to the transactions contemplated by the Stock Purchase
Agreement as set forth herein.

 

NOW,
THEREFORE, in consideration of the $898,000 (USD) (the “Settlement Amount”) to be paid by the
Company to the Former Protocom Shareholders within five (5) business days
from the date hereof, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Company and the
Former Protocom Shareholders agree as follows:

 

1.             Release and Waiver.

 

(a)           Subject to delivery of the full
Settlement Amount to the Sellers’ Representative, the Former Protocom
Shareholders, on behalf of themselves and their successors,

 

 

1

 

assigns, heirs,
beneficiaries, creditors, representatives, agents, shareholders, partners,
limited partners, general partners and affiliates (the “Protocom Releasing Parties”), hereby
fully, finally, unconditionally and irrevocably waive, pursuant to Section 10.03
of the Stock Purchase Agreement, any and all of their rights to receive shares
of Common Stock pursuant to Sections 2.02 and 2.07 of the Stock Purchase
Agreement and release, acquit and forever discharge the Company, and each of
its respective officers, directors, partners, general partners, limited
partners, managing directors, members, stockholders, trustees, representatives,
employees, principals, agents, affiliates, parents, subsidiaries (direct and
indirect), joint ventures, predecessors, successors, assigns, beneficiaries,
heirs, executors, personal or legal representatives, insurers and attorneys of
any of them (collectively, the “Company
Released Parties”), of and from any and all commitments, actions,
debts, claims, counterclaims, suits, causes of action, damages, demands,
liabilities, obligations, costs, expenses, and compensation of every kind and
nature whatsoever, past, present or future, at law or in equity, whether known
or unknown, contingent or otherwise, which the Protocom Releasing Parties, or
any of them, had, has or may have had at any time in the past until and
including the date of this Release, against the Company Released Parties, or
any of them, including, but not limited to, any claims which relate to or arise
out of the Stock Purchase Agreement and any claims for breach of contract or
for fraud or fraudulent inducement in connection with the negotiation,
execution, delivery and performance of the Stock Purchase Agreement and the
other documents and agreements to which the Former Protocom Shareholders are a
party in connection with the transactions contemplated by the Stock Purchase
Agreement (collectively, “Company Causes of
Action”). Notwithstanding the foregoing, this Release shall exclude (i) claims
solely related to the Company’s payment of the Settlement Amount and (ii) any
claims arising out of or relating to Mr. Hart’s or Mr. Smith’s
employment with the Company.

 

(b)           The Company, on behalf of itself and
its successors, assigns, heirs, beneficiaries, creditors, representatives,
agents, shareholders, partners, limited partners, general partners and
affiliates (the “Company Releasing Parties”),
hereby fully, finally, unconditionally and irrevocably waives and
releases, acquits and forever discharges each of the Former Protocom
Shareholders, and each of their respective officers, directors, partners,
general partners, limited partners, managing directors, members, stockholders,
trustees, representatives, employees, principals, agents, affiliates, parents,
subsidiaries (direct and indirect), joint ventures, predecessors, successors,
assigns, beneficiaries, heirs, executors, personal or legal representatives,
insurers and attorneys of any of them (collectively, the “Protocom Released Parties”), of and from
any and all commitments, actions, debts, claims, counterclaims, suits, causes
of action, damages, demands, liabilities, obligations, costs, expenses, and
compensation of every kind and nature whatsoever, past, present or future, at
law or in equity, whether known or unknown, contingent or otherwise, which such
Company Releasing Parties, or any of them, had, has or may have had at any time
in the past until and including the date of this Release, against the Protocom
Released Parties, or any of them, including, but not limited to, any claims
which relate to or arise out of the Stock Purchase Agreement and any claims for
breach of contract or for fraud or fraudulent inducement in connection with the
negotiation, execution, delivery and performance of the Stock Purchase
Agreement and the other documents and agreements to which the Company is a
party in connection with the transactions contemplated by the Stock Purchase
Agreement (collectively, “Protocom
Shareholders Causes of Action” and together with the Company Causes
of Action, the “Causes of Action”).

 

 

2

 

2.             No Assignment of Claims.
Each of the Parties hereby represents solely on behalf of such Party to each of
the other Parties that such Party (a) has not assigned, transferred, sold
or otherwise hypothecated any right to receive the Common Stock pursuant to Section 2.07
of the Stock Purchase Agreement; (b) has not assigned any Causes of Action
or possible Causes of Action against any other Party, (c) fully intends to
release all Causes of Action against the other Parties including, without
limitation, unknown and contingent Causes of Action and (d) has consulted
with counsel with respect to the execution and delivery of this Release and has
been fully apprised of the consequences hereof. Each of the Parties also hereby
expressly waives the benefits of Section 1542 of the California Civil Code,
as well as any similar provisions under applicable law, which reads as follows:

 

“A
general release does not extend to claims which the creditor does not know or
suspect to exist in his favor at the time of executing the release which if
known to him must have materially affected his settlement with the debtor.”

 

3.             Covenant Not to Sue.
Each of the Parties covenants and agrees not to institute, directly or
indirectly, any litigation, lawsuit, claim or action against any of the other
Parties with respect to the released Causes of Action.

 

4.             Adequacy of Information.
Each of the Parties hereby represents and warrants that they have access to
adequate information regarding the terms of the Stock Purchase Agreement and
each other document and agreement to which they are a party in connection with
the transactions contemplated by the Stock Purchase Agreement, including,
without limitation, the adequacy of the Settlement Amount, the scope and effect
of the general release set forth herein, and all other matters encompassed by
this Release, to make an informed and knowledgeable decision with regard to
entering into this Release. Each of the Parties further represents and warrants
that they have not relied upon any of the other Parties in deciding to enter
into this Release and have instead made their own independent analysis and
decision to enter into this Release. Each of the Parties further acknowledges
that they may hereafter discover facts different from, or in addition to, those
which they now know or believe to be true with respect to the claims released
hereby, and agree that, in such event, this Release shall nevertheless be and
remain effective in all respects, notwithstanding such different or additional
facts or the discovery thereof.

 

5.             Sufficiency of Consideration.
The Former Protocom Shareholders acknowledge and agree that the release granted
by the Company and the Settlement Amount payable to them pursuant to the terms
of this Release and the covenants contained herein provide good and sufficient
consideration for every promise, duty, release, obligation, agreement and right
contained in this Release. The Company acknowledges and agrees that the release
granted by the Former Protocom Shareholders pursuant to the terms of this
Release and the covenants contained herein provide good and sufficient
consideration for every promise, duty, release, obligation, agreement and right
contained in this Release.

 

6.             Law Governing; Dispute
Resolution. This Release, and all claims and disputes
arising in connection with this Release, or the negotiation, breach,
termination, performance or validity hereof or the transactions contemplated
hereby, shall be governed by and construed in accordance with the laws of the
State of California, without giving effect to the conflicts of laws

 

 

3

 

principles thereof. Any
claim or dispute arising out of or relating to this Release, or the
negotiation, breach, termination, performance or validity hereof or the
transactions contemplated hereby, shall be resolved solely and exclusively in
accordance with the terms of Section 11.10 of the Stock Purchase
Agreement.

 

7.             Interpretation.
Each Party has been represented by counsel in connection with this Release and
each provision of this Release shall be interpreted and construed as if it were
equally and jointly drafted by the Parties.

 

8.             Third Party Beneficiaries;
Amendments. The Parties acknowledge and agree that each
of the Company Released Parties and Protocom Released Parties is a third party
beneficiary of this Release, and shall be entitled to enforce the provisions
herein against the other Parties to the same extent as if they were parties
hereto. The Parties acknowledge and agree that this Release may only be
amended, modified or supplemented by written agreement of the Company and each
of the Former Protocom Shareholders.

 

9.             Full Force and Effect; Entire
Agreement. Except to the extent expressly provided in
this Release, the terms and conditions of the Stock Purchase Agreement shall remain
in full force and effect. This Release and the Stock Purchase Agreement (and
the exhibits thereto) constitute the entire understanding and agreement between
and among the Parties with respect to the subject matter hereof. No other
agreements, covenants, representations or warranties, express or implied, oral
or written, have been made by any party with respect to the subject matter of
this Release. All prior or contemporaneous conversations, negotiations,
proposed agreements and agreements, or representations, covenants and
warranties with respect to the subject matter hereof are merged herein, waived,
superseded and replaced in total by this Release.

 

10.          Counterparts.
This Release may be executed in counterparts, each of which when so delivered
shall be deemed an original, but all such counterparts taken together shall
constitute but one and the same instrument.

 

11.          Severability.
Any provision of this Release that is prohibited or unenforceable shall be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof in that jurisdiction or affecting
the validity or enforceability of such provision in any other jurisdiction.

 

12.          Indemnity.
Without in any way limiting any of the rights and remedies otherwise available
to any Party hereunder,

 

(a)           the Former Protocom Shareholders
shall, jointly but not severally, indemnify and hold harmless each Company
Released Party from and against all loss, liability, claim, damage (including
incidental and consequential damages) or expense (including costs of
investigation and defense and reasonable attorneys’ fees) whether or not
involving third party claims, arising directly or indirectly from or in
connection with (i) the assertion by or on behalf of any Protocom
Releasing Party of any claim or other matter released pursuant to this Release
and (ii) the assertion by any third party of any claim or demand against
any Company Released Party, which claim or demand arises directly or indirectly
from, or in connection with, any

 

4

 

assertion by or on behalf
of any Protocom Releasing Party against such third party of any claims or other
matters released pursuant to this Release; and

 

(b)           the Company shall indemnify and hold
harmless each Protocom Released Party from and against all loss, liability,
claim, damage (including incidental and consequential damages) or expense
(including costs of investigation and defense and reasonable attorneys’ fees)
whether or not involving third party claims, arising directly or indirectly
from or in connection with (i) the assertion by or on behalf of any
Company Releasing Party of any claim or other matter released pursuant to this
Release and (ii) the assertion by any third party of any claim or demand
against any Protocom Released Party, which claim or demand arises directly or
indirectly from, or in connection with, any assertion by or on behalf of any
Company Releasing Party against such third party of any claims or other matters
released pursuant to this Release.

 

13.          Effectiveness of Release.
If the Company does not pay the Settlement Amount to the Sellers’
Representative within five business days from the date hereof, this Release is
null and void ab initio and shall
not bind any Party.

 

[END OF TEXT]

 

 

5

 

IN WITNESS WHEREOF, each of the parties hereto have caused this
Release to be duly executed and delivered as of the date first written above.

 

	
  THE
  COMPANY:

  	
   

  	
  ACTIVIDENTITY
  CORPORATION,

  a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  /s/ Richard Kashnow

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Richard
  Kashnow

  
	
   

  	
   

  	
   

  	
  Title:   Chairman

  

 

 

	
  HART:

  	
   

  	
  JASON HART,

  an individual

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  

 

 

	
  SMITH:

  	
   

  	
  MICHAEL SMITH,

  an individual

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  

 

 

	
  EQUITY
  PARTNERS:

  	
   

  	
  EQUITY PARTNERS TWO PTY
  LTD.

  Trustee for Equity Partners 2 Trust

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Quentin Jones

  
	
   

  	
   

  	
   

  	
  Title:   Director

  

 

	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Richard
  Gregson

  
	
   

  	
   

  	
   

  	
  Title:   Director

  

 

 

6

 

 

IN WITNESS WHEREOF, each of the parties hereto have caused this
Release to be duly executed and delivered as of the date first written above.

 

	
  THE
  COMPANY:

  	
   

  	
  ACTIVIDENTITY
  CORPORATION, 

  a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:  Richard
  Kashnow

  
	
   

  	
   

  	
   

  	
  Title:   Chairman

  

 

 

	
  HART:

  	
   

  	
  JASON HART,

  an individual

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Jason Hart

  	
   

  

 

 

	
  SMITH:

  	
   

  	
  MICHAEL SMITH,

  an individual

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  

 

 

	
  EQUITY
  PARTNERS:

  	
   

  	
  EQUITY PARTNERS TWO PTY
  LTD, 

  Trustee for Equity Partners 2 Trust

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Quentin
  Jones

  
	
   

  	
   

  	
   

  	
  Title:   Director

  

 

	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Richard
  Gregson

  
	
   

  	
   

  	
   

  	
  Title:   Director

  

 

 

7

 

IN
WITNESS WHEREOF, each of the parties hereto have caused this
Release to be duly executed and delivered as of the date first written above.

 

	
  THE
  COMPANY:

  	
   

  	
  ACTIVIDENTITY
  CORPORATION, 

  a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Richard Kashnow

  
	
   

  	
   

  	
   

  	
  Title:   Chairman

  

 

 

	
  HART:

  	
   

  	
  JASON HART,

  an individual

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  

 

 

	
  SMITH:

  	
   

  	
  MICHAEL SMITH,

  an individual

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Michael Smith

  	
   

  

 

 

	
  EQUITY
  PARTNERS:

  	
   

  	
  EQUITY PARTNERS TWO PTY
  LTD, 

  Trustee for Equity Partners 2 Trust

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Quentin
  Jones

  
	
   

  	
   

  	
   

  	
  Title:   Director

  

 

	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Richard
  Gregson

  
	
   

  	
   

  	
   

  	
  Title:   Director

  

 

 

8

 

IN
WITNESS WHEREOF, each of the parties hereto have caused this
Release to be duly executed and delivered as of the date first written above.

 

	
  THE
  COMPANY:

  	
   

  	
  ACTIVIDENTITY
  CORPORATION, 

  a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Richard
  Kashnow

  
	
   

  	
   

  	
   

  	
  Title:   Chairman

  

 

 

	
  HART:

  	
   

  	
  JASON HART,

  an individual

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  

 

 

	
  SMITH:

  	
   

  	
  MICHAEL SMITH,

  an individual

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  

 

 

	
  EQUITY
  PARTNERS:

  	
   

  	
  EQUITY PARTNERS TWO PTY
  LTD, 

  Trustee for Equity Partners 2 Trust

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Quentin Jones

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Quentin
  Jones

  
	
   

  	
   

  	
   

  	
  Title:   Director

  

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Rajeev Dhawan

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Rajeev
  Dhawan

  
	
   

  	
   

  	
   

  	
  Title:   Director

  

 

 

9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}]]