Document:

Exhibit
10.35

LEASE AGREEMENT

THIS
LEASE AGREEMENT (the “Lease”) made and entered into this 6th day of September, 2002, by and between LA/GA BUSINESS CENTERS, INC., A GEORGIA CORPORATION
(hereinafter “Landlord”) and MEDQUIST TRANSCRIPTIONS,
LTD., A NEW JERSEY CORPORATION (hereinafter “Tenant”).

WITNESSETH:

Landlord, for and in
consideration of the covenants and agreements set forth hereinafter, leases to
Tenant, and Tenant rents from Landlord the Demised Premises described below,
for the Use set forth and for the Term and at the rent reserved herein, and
subject to the terms and conditions of the Lease.

1.                                      REFERENCE
PROVISIONS AND DEFINITIONS.

Landlord and Tenant
covenant and agree that for purposes of the Lease, the following terms shall
have the meanings set forth herein.

1.1.          Center.  American Business Center, which is located at
1395 South Marietta Parkway in the City of Marietta, Cobb County, Georgia,
30067.

1.2.          Demised
Premises.  Building 600, Suite
606/608 at the Center, and being approximately 19,761 rentable square feet as
outlined in red on the floor plan attached hereto as Exhibit “A” and
incorporated herein by this reference, which space is more particularly defined
by Article 1.10 hereof and the right to use in common with others the Common
Area of the Center as defined in Article 1.11 hereof.

1.3.          Term
of the Lease or Term.  A
period of 60 months, commencing on (the “Commencement Date”) the later to occur
of December 1, 2002 or the date when the Demised Premises shall be
substantially completed (meaning such state of completion, exclusive of
improvements to be performed by Tenant or Tenant’s contractors, as will
lawfully allow Tenant to utilize the Demised Premises for its intended purpose,
without material interference by reason of final completion) and when a
Certificate of Occupancy for the Demised Premises has been issued by the
municipal authority or agency having jurisdiction over the Demised Premises;
provided that substantial completion shall be deemed to have occurred if the
foregoing standards are not met because of any work remaining to be performed
by Tenant or if there are delays caused by Tenant; further provided that if
Tenant shall occupy the Demised Premises for the purposes of conducting its
business for the permitted use set forth herein, prior to either of the
foregoing dates, then the Term of this Lease shall commence on the date on
which Tenant commences such occupancy. 
When the Commencement Date of this Lease is established, Landlord and
Tenant shall promptly execute and acknowledge a memorandum in form
substantially as set forth in Exhibit “E” hereto, containing the information
set forth in said Exhibit.

1.4.          Use.  To be used as general office and warehouse
space and for no other purpose.

 

 

1.5.          Security
Deposit.  $6,157.24 to be held
as a Security Deposit pursuant to Article 10.4 hereof.  The parties acknowledge that the entire
$6,157.24 has been previously delivered to the Landlord by the Tenant pursuant
that certain Lease Agreement dated September 10, 1998 between The Rubenstein
Company L.P., as landlord and MedQuist Transcriptions Ltd., f/k/a The MRC Group
as tenant (the “Prior Lease”).  Such
entire amount was paid to the then landlord in November 1998.  Upon the termination of the Prior Lease,
provided that the Landlord as landlord under the Prior Lease does not utilize
any portion of the security deposit under the Prior Lease for amounts owed
thereunder, the Landlord shall apply the security deposit under the Prior Lease
and utilize same as the security deposit under this Lease.  In the event the Landlord applies any portion
of the security deposit under the Prior Lease for amounts owed thereunder, the
Tenant shall pay to the Landlord hereunder on demand the difference between the
amount applied and the amount of $6,157.24.

1.6.          Minimum
Annual Rent.  Minimum Annual
Rent will abate the first six (6) months of the Term on 3,973 rentable square
feet.  For months 1-6 from the
Commencement Date, the Minimum Annual Rent for the remainder of the Demised
Premises shall be One Hundred Forty-Six Thousand, Thirty-Nine Dollars and no
cents ($146,039.00) payable in equal monthly installments of Twelve Thousand,
One Hundred Sixty-Nine Dollars and Ninety-Two Cents ($12,169.92).  For months 7-12 from the Commencement Date,
the Minimum Annual Rent shall be One Hundred Eighty-Two Thousand, Seven Hundred
Eighty-Nine Dollars and Twenty-Five Cents ($182,789.25) payable in equal
monthly installments of Fifteen Thousand, Two Hundred Thirty-Two Dollars and
Forty-Four Cents ($15,232.44).  The
Minimum Annual Rent shall for the remainder of the Term be subject to increase
as provided for in Article 2.2 hereof, which increases when effective shall be
deemed part of the “Minimum Annual Rent”. 
Attached hereto and incorporated herein, in Paragraph 2 of Exhibit “B”
is a schedule which shows the Minimum Annual Rental amounts due for the entire
Term, which amounts include the increase provided for in Article 2.2.

1.7.          Additional
Rent.  Pursuant to Article 2.3
hereof, Tenant’s Proportionate Share of the total cost of Real Estate Taxes,
Insurance Premiums, and Common Area Operating Costs (all as defined in 1.12,
1.13 and 1.14 below) to the extent such cost to Landlord exceeds $0.45 per
rentable square foot (hereinafter “Operating Allowance”) and such other costs to
Landlord hereinafter claimed from Tenant as “Additional Rent”.  Additional Rent and Minimum Annual Rent are
at times herein collectively referred to as “Rent”.

1.8.          Landlord
and Tenant Construction Obligations. 
As specified in Exhibit ”B” attached hereto and incorporated herein
by this reference, which shall be deemed to be Landlord’s and Tenant’s
obligations as to construction and interior fit-out of the Demised Premises.

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1.9.          Notice
Address of Landlord and Tenant:

	
  To Landlord:

  	
   

  	
  To
  Tenant:

  
	
  LA/GA Business Centers, Inc.

  	
   

  	
  MedQuist
  Transcriptions, Ltd.

  
	
  C/o Advantis Real Estate Services Company

  	
   

  	
  Attention:
  General Counsel

  
	
  Regional Director of Management Services

  	
   

  	
  Five Greentree
  Centre

  
	
  3455 Peachtree Road NE, Suite 400

  	
   

  	
  Suite 311

  
	
  Atlanta, GA 30326

  	
   

  	
  Marlton, NJ
  08053

  
	
   

  	
   

  	
   

  
	
  Address for Rental and other Payments:

  	
   

  	
   

  
	
  LA/GA Business Centers, Inc.

  	
   

  	
   

  
	
  American Business Center, c/o Advantis

  	
   

  	
   

  
	
  P.O. Box 932466

  	
   

  	
   

  
	
  Atlanta, GA 31193-2466

  	
   

  	
   

  

 

or such other address as
Landlord or Tenant notifies the other of in writing from time to time.

1.10.        Demised
Premises.  The term “Demised
Premises” as described in Article 1.2 of this Lease shall be as outlined in red
on the floor plan attached hereto as Exhibit “A” and shall include the
appurtenances specifically granted in this Lease, but reserving and excepting
to Landlord the right to install, maintain, use, repair and replace pipes,
ductwork, conduits, utility lines and wires through hung ceiling space, column
space and partitions, in or beneath the floor slab or above the Demised
Premises, or other parts of the Center, except that Landlord shall not
unreasonably interfere with or interrupt the business operations of Tenant
within the Demised Premises except when necessary as determined by Landlord,
and except where necessary as determined by Landlord’s architect, no pipes,
conduits, utility lines or wires installed by Landlord shall be exposed in the
Demised Premises.  Tenant understands,
acknowledges and agrees (i) that the amount of rentable square feet set forth
in Article 1.2 above is an approximation only, and (ii) that such amount of
rentable square feet is hereby accepted by Tenant for all purposes of this
Lease.

1.11.        Common
Area.  The term “Common Area”
(as initially constructed or as the same may at any time thereafter be enlarged
or reduced) shall mean all areas, spaces, facilities, equipment, signs and
special services from time to time made available by Landlord for the common
and joint use and benefit of Landlord, the Tenant and other tenants and
occupants of the Center, and their respective employees, agents, customers and
invitees.

1.12.        Real
Estate Taxes.  The term “Real
Estate Taxes” shall mean all taxes and assessments (special or otherwise)
levied or assessed against the Center (land, building, and improvements) and
other taxes arising out of the use and/or occupancy of the Demised Premises
imposed by Federal, State, or local governmental authority or any other taxing
authority having jurisdiction over the Center, but shall exclude franchise,
capital stock, estate or inheritance taxes personal in nature to Landlord.

1.13.        Insurance
Costs.  The term “Insurance
Costs” shall be deemed to be premiums and other charges paid by the Landlord
for fire insurance, liability insurance, and all

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special and extended insurance coverage for
the Center in amounts and in types of coverage at the sole discretion of
Landlord.

1.14.        Common
Area Operating Costs.  The
term “Common Area Operating Costs” shall mean the total costs and expenses
incurred by Landlord in operating, maintaining, managing, repairing and
replacing the Common Area and the Center. 
There shall be excluded from Common Area Operating Costs the original
costs of constructing the Common Area and the Center, including any portions of
the Common Area or the Center constructed subsequent to the date of this Lease;
however, Common Area Operating Costs shall include, if any, the annual
amortization (over the useful life) of a capital improvement falling within any
of the following categories:  (i) a labor
saving device or improvement which is intended to reduce or eliminate any
component of Common Area Operating Costs; (ii) an installation or improvement
required by reason of any law, ordinance or regulation which is generally
applicable to similar office centers; and (iii) an installation or improvement
which directly enhances safety or comfort of Tenants in the Common Area or the
Center generally.

1.15.        Exclusion
from Common Area Operating Costs. 
Depreciation; interest on and amortization of debts; leasehold
improvements made in connection with spaces occupied or to be occupied by
tenants of the Center; costs of performing any clean-up of “Waste” (defined in
section 3.3) provided that such costs are: 
(1) for clean up of Waste existing at the Center as of the date of this
Lease or (2) provided that such costs incurred are not incurred because of the
acts of Tenant, its successors, assigns, agents or employees; brokerage
commissions and advertising expenses and other costs and expenses (including,
without limitation, attorney fees) for procuring new tenants in the Center;
refinancing costs; the cost of any item included in Common Area Operating Costs
to the extent that such cost is reimbursed by an insurance company or a condemnor;
costs relating to disputes with other tenants; costs, fines or penalties
incurred by Landlord to cure any existing violations in the Common Area, if
any, that exist as of the date of this Lease, of the provisions of any
applicable building code, regulation or law which applies to the Center as of
the date of this Lease, including but not limited to the Americans With
Disabilities Act, provided that such violations exist as of the date of this
Lease; and the cost of capital improvements, except for those falling within
the categories specifically set forth in Section 1.14 above or in Section 5.5
herein.

1.16.        Tenant’s
Proportionate Share.  The term
“Tenant’s Proportionate Share” shall mean a fraction the numerator of which
shall be the number of rentable square feet in the Demised Premises as stated
in Article 1.2 of the Lease and the denominator of which shall be the total
number of rentable square feet of space in the Center (as such total number of
rentable square feet may increase or decrease from time to time) on an average
basis for the calendar year for which charges are being computed.

2.                                      RENT
AND OTHER CHARGES.

2.1.          Minimum
Annual Rent.  Tenant shall pay
to LA/GA Business Centers, Inc., American Business Center, c/o Advantis, P.O.
Box 932466, Atlanta, Ga., 30326, or such place as Landlord may designate in
writing, without abatement, deduction, or setoff the Minimum Annual Rent
provided in Article 1.6 in equal monthly installments on the first day of each
calendar month throughout the Term in advance, without notice or demand.  If the Term

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commences on a day other than the first day
of a month, Tenant shall pay Landlord on the first day of the Term (i.e., the
Commencement Date), a pro-rata portion of such Minimum Annual Rent, calculated
on a thirty (30) day calendar month. 
Tenant shall pay the first full monthly installment of Minimum Annual
Rent upon execution of the Lease as set forth in Article 1.6 of the Lease.

2.2.          Minimum
Annual Rent Escalation.  On
each July 1, during the Term of the Lease, the amount of Minimum Annual Rent
(as previously adjusted by this Article) shall be adjusted upwards by three and
one half percent (3.5%) thereof, with the amount of each monthly installment of
Minimum Annual Rent to be adjusted for the following twelve (12) months so as
to be equal to one twelfth (1/12) of the adjusted Minimum Annual Rent.  Attached hereto and incorporated herein by
reference in Paragraph 2 of Exhibit “B” is a Schedule showing the Minimum
Annual Rental amounts due over the Term of the Lease, with the adjustments
included.

2.3.          Reimbursement
for Real Estate, Insurance Costs and Common Area Operating Costs.  As Additional Rent, Tenant shall pay Tenant’s
Proportionate Share as defined in Article 1.16 of this Lease, of the amount by
which the Real Estate Taxes, Insurance Costs, and Common Area Operating Costs,
all as defined in Articles 1.12, 1.13 and 1.14, for any year during the Term
exceed the Operating Allowance as defined in Article 1.7 of the Lease.  Landlord, on or before The first day of each
year, shall, as soon as practically possible, estimate and send notice to
Tenant of the amount of such excess for the upcoming year and after notice
Tenant shall pay to Landlord one twelfth (1/12) thereof in equal monthly
installments, as Additional Rent, together with the payment of Minimum Annual
Rent.  In the event the aggregate of
Tenant’s installments during any year shall be less than or more than the
amount actually due from Tenant when the actual costs are determined, there
shall be an adjustment between Tenant and Landlord immediately upon notice from
Landlord or with the next Minimum Annual Rent payment, if any (the “Adjustment”).  For any period within the Term, which is less
than a full year, Tenant’s share of the excess of such charges shall be
prorated on a per diem basis.

2.4.          Right
to Audit.  Within 180 days
from the date of the Adjustment, if any, but in no event later than 210 days
after the end of each calendar year, Tenant shall have the right to dispute the
Taxes and Operating Costs for the prior calendar year and conduct an audit of
same pursuant to the provisions set forth herein.  In the event Tenant disputes the amount of
Operating Costs and Taxes for a prior calendar year, Landlord shall permit
Tenant, within 180 days of the date of the Adjustment but in no event later
than 210 days from the end of the particular calendar year, at Tenant’s sole
cost and expense upon at least (10) ten days prior written notice to Landlord
to have an audit made of Landlord’s books, records, and accounts relative to
the Taxes and Operating Costs for such prior year by Tenant’s in house
accountants, or a reputable independent certified public accountant or Tenant’s
counsel.  Such inspection shall be made
on such date and time reasonably set by Landlord in Landlord’s office during
normal business hours.  If such audit is
not completed by Tenant within 180 days from the date of the Adjustment and if
no Adjustment has been made, within 210 days from the end of the particular
calendar year, Tenant shall have no further right of audit for that particular
calendar year and the amount claimed to be owed by Landlord shall be conclusive
and binding on Tenant.  Notwithstanding
anything to the contrary contained herein, Tenant or Tenant’s authorized

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representative (as set forth above) may
conduct such audit no more than one (1) time during any twelve (12) month
period.  If the examination made by the
Tenant discloses a discrepancy in the Taxes and Operating Costs charged to the
Tenant, Tenant shall contest such charge within such 180 day period or 210 day
period as set forth above.  In the event
that Tenant does not provide written notice to Landlord of Tenant’s intent to
dispute or contest such expenses within such 180 day or 210 day period, as
applicable, or if Tenant’s audit is not completed within such 180 or 210 day
period, as applicable, Tenant waives the right to dispute or contest the Taxes
and Operating Costs for the prior year. 
It is further understood and agreed that Tenant, Tenant’s accountant and
Tenant’s outside counsel will retain as confidential the information contained
in the above-described books, records and accounts.

2.5.          Utility
Charges.  As Additional Rent,
Tenant shall pay promptly, as and when the same become due and payable without
penalties, all rents, rates, taxes and charges for all utilities including
electricity, gas, heat, steam, hot and/or chilled water, and sewer supplied to
the Demised Premises whether supplied by Landlord or the utility company
serving the Center and whether separately metered or not.  Landlord shall have no liability to Tenant
for disruption of any utility service, and in no event shall such disruption
constitute an eviction or entitle Tenant to an abatement of rent or other
charges.  Provided, however, that if as a
result of causes solely within Landlord’s control, a cessation of the electric,
heating, sewer service, ventilation or air conditioning service occurs and if
such occurrence shall result in a “Shut-Down Condition” which shall exist for
more than five (5) consecutive business days, then the Minimum Annual Rent
hereunder shall abate for each day that the Shut-Down Condition shall
thereafter persist (i.e., each day after the five (5) day period). “Shut-Down
Condition” means that (i) Tenant’s personnel cannot reasonably perform their
normal functions in the Demised Premises, and (ii) Tenant shall have
closed its business operations in the Demised Premises as a result.

2.6.          Personal
Property and Other Taxes.  As
Additional Rent, Tenant shall pay when due all taxes imposed upon all personal
property of Tenant and upon the Demised Premises.  Furthermore, as Additional Rent, Tenant shall
pay when due, whether collected by Landlord or directly by the governmental
agency assessing same, any taxes imposed or calculated on Tenant’s rent or with
respect to Tenant business or right to do business in the Demised Premises such
as, but not limited to, a gross receipts tax on rents or a business privilege
tax, whether such tax exists at the date of the Lease or is adopted thereafter.

2.7.          Late
Payment Charges.  Should
Tenant fail to pay when due any installment of Minimum Annual Rent within ten
(10) days of the date when due, or any other sum payable to Landlord under the
terms of the Lease within ten (10) days of the date when due, then Interest
shall accrue from and after the date on which any sum shall be due and payable,
and such Interest together with a Late Charge of five percent (5%) of the
amount due to cover the extra expense involved in handling such delinquency
shall be paid by Tenant to Landlord at the time of payment of the delinquent
sum.

2.8.          Interest.  Whenever the Lease refers to “Interest”, the
same shall be computed at a rate equal to fifteen percent (15%).  If, however, payment of interest at such rate
by Tenant should be considered by law as usurious, then Interest shall be
computed at the maximum rate allowable by law for such party.

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3.                                      CONDITION
AND USE OF THE DEMISED PREMISES AND CENTER.

3.1.          Condition
of the Demised Premises. 
Tenant acknowledges that it has examined and inspected the Demised
Premises and the plans for the Demised Premises referenced on Exhibit “C”; and
is familiar with the physical condition thereof.  If Exhibit “B” indicates delivery of the
Demised Premises “as is”, then Tenant further acknowledges (i) that Landlord
has not made and does not hereby make any representations regarding the
physical condition of the Demised Premises, (ii) that there are no warranties,
either express or implied, regarding the condition of the Demised Premises,
(iii) any such warranties which may exist are hereby expressly released and
waived, and (iv) Tenant hereby agrees to accept the Demised Premises in its “as
is” condition which shall be deemed to be acknowledged upon Tenant’s failure to
object to the condition of the Demised Premises prior to the commencement of
the Term as defined in Article 1.3 hereof. 
In the case where Exhibit “B” requires Landlord to perform certain
defined work, Tenant acknowledges that the existing condition of the Demised Premises
with only the defined work completed shall complete Landlord’s responsibility
for delivery of the Demised Premises. 
Landlord will substantially complete construction of the Demised
Premises in accordance with the defined work in Exhibit “C” prior to the
commencement of the Lease.  Tenant agrees
to cooperate with Landlord with respect to such work.  Any delays in completing the construction in
the Demised Premises caused by Tenant’s actions or failure to act shall not be
the responsibility of the Landlord and shall not modify Tenant’s obligation to
commence payment of rent and other charges on the commencement date of the
Term.

3.2.          Use
and Occupancy of the Demised Premises.  Subject to and in accordance with all rules,
regulations, laws, and ordinances, statutes and requirements of all
governmental authorities, the Board of Fire Insurance Underwriters, and
Landlord’s insurance carrier, Tenant shall use the Demised Premises solely as
provided for in Article 1.4 and for no other purpose.  Tenant will not use the Demised Premises in
any way that would disturb other tenants of the Center.  A vacation of premises or cessation of
operations by Tenant in the Center shall not in any way release Tenant from its
obligations under the Lease.  Tenant’s
use of the Demised Premises shall be subject at all times and from time to time
to the rules and regulations established by Landlord, a current copy of which
is attached as Exhibit “D” hereto and made a part hereof.

3.3.          Environmental
Representation.  Tenant will
not store, treat, dispose of, discharge, transport or produce “Waste” (as
hereinafter defined) at the Demised Premises or at the Center.  As used herein, the term “Waste” shall mean
any substance or material which has been determined by any state, federal or local
governmental authority to be capable of posing a risk of injury to health,
safety or property, including all of those materials and substances designated
as hazardous or toxic by the city or county in which the Demised Premises are
located, the U.S.  Environmental
Protection Agency, the Consumer Product Safety Commission, the Food and Drug
Administration, or any other governmental agency now or hereafter authorized to
regulate materials and substances in the environment.  Tenant covenants and agrees that Tenant will
be and will remain in full compliance with all applicable laws governing use
and occupancy of the Demised Premises including, without limitation, the
manufacturing, treatment, storage, disposal, discharge, use, and transportation
of Waste, and any Waste regulated under any local, state or federal law.

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3.4.          Liability.  The parties hereto agree that the Tenant, its
affiliates, shareholders, directors, officers, employees and agents shall not
be liable for any cost or expense of any kind or nature in connection with or
arising out of the discharge or release of any Waste at the Demised Premises or
the Center which has occurred (if any) prior to the date of this Lease, unless
such discharge or release was caused by the Tenant.

3.5.          Use,
Condition and Operation of the Common Area.  Tenant acknowledges that it has inspected the
Common Area of the Center.  Tenant
further acknowledges that Landlord has not made and does not hereby make any
representations or warranties with respect to the Common Area of the
Center.  All Common Area made available
by Landlord, in or about the Center, shall be subject to the exclusive control
and management of Landlord, without limitation, the right to erect and install
within the Common Area any object or building or any other installation.  Tenant is hereby given a license (in common
with all others to whom Landlord has or may hereafter grant rights) to use,
during the Term, the Common Area of the Center as it may now or at any time
during the Term exist.  Tenant hereby
acknowledges, consents, and agrees that any and/or all services, facilities and
access by the public to the Common Area may be suspended in whole or in part
without any liability to Landlord.  The
Landlord shall make a commercially reasonable effort to provide Tenant at least
48 hours notice of such services, facilities and access by the public to the
Common Area that is being suspended. 
Failure to give such notice shall not impose any liability upon the
Landlord.  Tenant hereby covenants and
agrees to comply with, and cause its employees, agents, visitors, and customers
to comply with all rules and regulations established by Landlord with respect
to the Common Area including current rules and regulations attached hereto as
Exhibit “D”.

4.                                      INSURANCE
AND INDEMNIFICATION.

4.1.          Insurance
Required of Tenant.  Tenant
shall obtain and provide, on or before the earlier of the commencement of the
Term or Tenant’s entering the Demised Premises for any purpose, and keep in
force at all times thereafter, the following insurance coverage with respect to
the Demised Premises: (a) Comprehensive General Liability Insurance, with
contractual liability endorsement, relating to the Demised Premises and its
appurtenances on an occurrence basis with a minimum single limit of Two Million
Dollars ($2,000,000.00); (b) fire and extended coverage including vandalism and
malicious mischief insurance (and in sprinklered buildings, sprinkler damage
insurance) in an amount adequate to cover the replacement value of all personal
property, decorations, trade fixtures, furnishings, equipment, alterations,
leasehold improvements, betterments, and all contents therein; and (c) such
other insurance as may be required from time to time by Landlord or Landlord’s
insurance carrier.  All of the aforesaid
insurance shall be written by responsible insurance companies satisfactory to
Landlord and shall be written naming Landlord and Landlord’s agent (and such
other parties as Landlord may request) as additional insureds, and with
agreement of the insurance company to give Landlord 30 days notice of
cancellation.  Certificates of Insurance
shall be given to Landlord 30 days prior to each expiration date.

4.2.          Landlord’s
Insurance.  Landlord shall
maintain and keep in force at all times during the Term of the Lease, fire
insurance and liability insurance covering the Demised Premises and the Center
in commercially reasonable amounts.

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4.3.          Waiver
of Subrogation.  Landlord and
Tenant hereby grant to each other on behalf of any insurer providing insurance
to either Landlord or Tenant covering the Demised Premises, improvements
therein or contents thereof a waiver of any right of subrogation any such
insurer of one party may acquire against the other by virtue of payment of any
loss under such insurance.  Such waivers
shall stand mutually terminated as of the date either Landlord or Tenant ceases
to be empowered to grant same.

4.4.          Tenant’s
Indemnification.  Tenant shall
indemnify and save harmless the Landlord, Landlord’s agents, servants and
employees from and against any and all claims, demands, costs and expenses,
including attorney fees incurred by Landlord, related to or arising in any
manner whatsoever out of the use and occupancy of the Demised Premises by
Tenant, or occasioned wholly or in part by any act or omission of Tenant, its
agents, contractors, employees, servants, invitees and customers.  Landlord shall not be liable for any injury
or damage to persons or property on the interior of the Demised Premises from
any cause or of any nature whatsoever, unless caused by the gross negligence of
Landlord, its agents or contractors.

4.5.          Insurance
Rating.  Tenant will not do or
permit anything to be done in the Demised Premises or the building of which
they form a part or bring or keep anything therein which shall in any way
increase the rate of fire or other insurance on said building, or on the
property kept therein, or obstruct, or interfere with the rights of other
tenants, or in any way injure or annoy them, or conflict with the fire laws or
regulations, or with any insurance company rules upon said building or part
thereof, or with any statutes, rules or regulations of governmental
authorities.

5.                                      REPAIRS,
MAINTENANCE AND ALTERATIONS.

5.1.          Repairs
and Services by Landlord. 
Landlord shall (a) make necessary structural repairs to the Demised
Premises, except those repairs set forth below which are the responsibility of
the Tenant and those repairs made necessary by any act or omission or
negligence of Tenant, Tenant’s employees, agents, invitees or except as
provided in Article 6 of the Lease and (b) maintenance of the Common Areas
including general landscaping of the grounds. 
Landlord shall not be liable by reason of any injury to or interference
with Tenant’s business, or any damage to personal property of Tenant arising
from the making or not making of any repairs, alterations, additions, or
improvements in or to the Demised Premises, the building in which the Demised
Premises is located, or the Center.

5.2.          Repairs
and Maintenance by Tenant. 
Tenant shall make and pay for all repairs to the Demised Premises, and
all equipment and systems serving the Demised Premises exclusively and shall
replace all things which are necessary to keep same in a good state of repair
and operating condition.  Included therein,
but not limited thereto, Tenant shall maintain, replace and keep in good repair
and operating order all air conditioning, ventilating, plumbing, sprinklering,
heating and electrical installations, ceilings, plate glass window, inside
walls and carpeting, and floor surfaces within or serving the Demised
Premises.  Tenant agrees to keep in force
a standard maintenance agreement on all heating and air conditioning equipment
and provide a copy of said agreement to Landlord.  Tenant shall at all times keep the Demised
Premises and all exterior entrances and windows in good order and repair and in
a satisfactory condition of cleanliness.

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If (i) Tenant does not
maintain and repair properly as required hereunder and to the reasonable
satisfaction of Landlord, or (ii) Landlord, in the exercise of its sole
discretion, determines that emergency repairs are necessary, or (iii) repairs
or replacements to the any part of the Center are made necessary by any act or
omission or negligence of Tenant, its agents, employees or invitees, then in
any such event Landlord may make such repairs without liability to Tenant for
any loss or damage that may accrue to Tenant’s personal property or business by
reason thereof, and upon completion thereof, Tenant shall pay Landlord’s costs
for making such repairs plus a reasonable amount for Landlord’s overhead, not
to exceed fifteen percent (15%), upon presentation of a bill therefor, as
Additional Rent.  Such payment shall be
due ten days after receipt of a bill therefor and after said date shall bear
Interest.

5.3.          Inspection.  Landlord or its representative shall have the
right to enter the Demised Premises and inspect same during any business day
with 48 hours notice (and without notice in an emergency or suspected emergency
at any time) during the Term.  During the
last six (6) months of the Term, Landlord shall have a right to show the
Demised Premises to prospective tenants.

5.4.          Tenant
Alterations.  Tenant will not
make any alterations, installations, changes, replacements, additions or
improvements (structural or otherwise) in or to the Demised Premises or any
part thereof without the prior written consent of Landlord and Landlord agrees
that for non-structural alterations that do not affect any of the systems of
the Demised Premises it will not unreasonably withhold its consent.  Tenant shall not install any equipment, which
would necessitate any changes, replacements or additions to the plumbing,
heating, air conditioning or electrical systems of the Demised Premises without
the prior consent of Landlord.  All
alterations, installations, changes, replacements, additions, or improvements
to or within the Demised Premises (whether with or without Landlord’s consent)
shall, at the election of the Landlord, remain upon the Demised Premises and be
surrendered with the Demised Premises at the expiration of the Lease or, at the
election of Landlord, be removed by Tenant and the Demised Premises returned to
its original condition, normal wear and tear excepted.  Notwithstanding the foregoing, the initial
improvements made pursuant to Exhibit “C” shall remain at the Demised Premises
at the expiration or earlier termination of the Lease and shall become the
property of the Landlord without payment therefor by Landlord unless as a
condition at the time the Landlord consents to such work, the Landlord
expressly requires Tenant to remove the same at the end of the Term.  Notwithstanding the above, Tenant may remove
Tenant’s operating systems, furniture and other items of movable personal property
at the end of the Term of this Lease provided that such systems, furniture or
personal property were not part of the initial fit-out work by Landlord as
shown in Exhibit “C” and further provided that the removal of such systems,
furniture or personal property does not cause any damage to the Demised
Premises.

5.5.          Compliance
with Law; Life Safety. 
Landlord shall install and maintain within the Building in which the
Demised Premises are a part, fire alarms, emergency lighting, and other related
life safety equipment, and exits from the Demised Premises to comply with all
present and future requirements of federal, state, county and city governments
and all other governmental authorities having or claiming jurisdiction with
respect to the occupancy of the Demised Premises initially and throughout the
Term and the cost thereof (excluding the cost for such items pursuant to the
initial tenant fit-out work performed pursuant to the specifications

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referenced on Exhibit “C” attached hereto),
shall be either expensed on an annual basis by Landlord or amortized over the
items useful life of such item (but not more that ten (10) years) and shall be
included within the Common Area Operating Expense to be paid by Tenant.

6.                                      DAMAGE
AND CONDEMNATION.

6.1.          Fire
or Casualty Damage.  In the
event of damage or destruction of the Demised Premises by fire or other
casualty, the Lease shall not be terminated, but the Demised Premises shall be
promptly and fully repaired and restored by Landlord at its own cost and
expenses to the condition prior to the commencement of the Lease, normal wear
and tear excepted.  If the Demised
Premises are damaged but not wholly destroyed by any such casualty, rental
shall abate in proportion of the Demised Premises which has been rendered untenantable
until substantial completion of its repair, at which time full rental shall
again commence under the Lease.  In the
event either (i) the damage to the Demised Premises is of such a nature that it
cannot be repaired by Landlord within ninety (90) days from the date of the
casualty; or (ii) the casualty occurs during the last two (2) years of the Term
of the Lease; or (iii) the insurance proceeds available and paid to Landlord
are not sufficient to restore the Demised Premises, then Landlord shall, at its
option, have the right to terminate the Lease and all further rights and
obligations hereunder.  In the event the
damage to the Demised Premises is of such a nature that it cannot be repaired
by the Landlord within One Hundred and Eighty (180) days from the date of the
casualty, as determined by the Landlord’s architect, then the Tenant may at its
option terminate this Lease.

6.2.          Condemnation.  Tenant agrees that if the Demised Premises,
or any part thereof which affects Tenant’s ability to occupy the space, shall
be taken or condemned for public use or purpose by any authority, Tenant shall
have no claim against Landlord and shall not have any claim or right to any
portion of the amount that may be awarded as damages or paid as a result of any
such condemnation.  All rights of Tenant
to damages therefor, if any, are hereby assigned by Tenant to Landlord.  Upon such condemnation or taking, the Term of
the Lease shall cease and terminate from the date of such governmental taking
or condemnation, and Tenant shall have no claim against Landlord for the value
of any unexpired term of the Lease. 
Nothing in this paragraph shall preclude Tenant from filing a separate
claim against the condemning authority for relocation costs, loss of business,
unamortized cost of any leasehold improvements that Tenant directly paid for
and loss of business provided that any award or claim to or by Tenant will not
result in a diminution of any award to Landlord or affect any claim by
Landlord.

7.                                      SUBORDINATION,
ATTORNMENT, ESTOPPEL, MODIFICATIONS.

7.1.          Subordination.  The Lease and all of Tenant’s rights
hereunder are subject and subordinate to all ground or underlying leases and to
all mortgages and/or deeds of trust (or deeds to secure debt) which may now or
hereafter affect such leases or the real property of which the Demised Premises
form a part and to all renewals, modifications, consolidations, replacements
and extensions thereof.  This clause
shall be self-operative and no further instrument or subordination shall be required
by any mortgagee or trustee; provided, however, Tenant, upon request of any
party in interest, shall promptly execute and deliver in recordable form such
instruments as are necessary to effectuate or confirm this subordination.

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Landlord agrees to
commercially reasonable efforts to deliver a Non-Disturbance Agreement to
Tenant from the holder of any mortgagee holding a mortgage or Deed of Trust
encumbering the Demised Premises on such mortgagee’s form.

7.2.          Attornment. 
If the holder of any mortgage, deed to secure debt, or other instrument
affecting or encumbering the fee title to the Demised Premises shall hereafter
succeed to the rights of the Landlord under this Lease, through whatever means,
then Tenant shall, at the option of such holder, attorn to and recognize such
successor as Tenant’s Landlord under the Lease and shall promptly execute and
deliver any instrument that may be necessary to evidence such attornment, and
upon such attornment, this Lease shall continue in full force and effect as a
direct Lease between such successor Landlord and Tenant, subject to all terms
of the Lease.

7.3.          Estoppel Certificates.  At anytime, and from time to time, upon the
written request of Landlord or any mortgagee of the Center, Tenant, within ten
(10) days of the date of such written request, agrees to execute and deliver to
Landlord and/or mortgagee, without charge and in a form satisfactory to
Landlord and/or such mortgagee, a written statement (i) ratifying the
Lease; (ii) confirming the commencement and expiration dates of the Term of the
Lease; (iii) certifying that Tenant is in occupancy of the Demised Premises,
and that the Lease is in full force and effect and has not been modified,
assigned, supplemented or amended except by such writings as shall be stated;
(iv) certifying to the best of the Tenant’s knowledge that all conditions and
agreements under the Lease to be satisfied or performed by Landlord have been
satisfied or performed except as shall be stated; (v) certifying to the best of
the Tenant’s knowledge that Landlord is not in default under the Lease and
there are no defenses or offsets against the enforcement of the Lease by
Landlord, or stating the defaults and/or defenses or offsets against the
enforcement of the Lease by Landlord, or stating the defaults and/or defenses
claimed by Tenant; (vi) reciting the amount of advance rent, if any, paid by
Tenant and the date to which such rent has been paid; (vii) reciting the amount
of security deposited with Landlord, if any; and (viii) any other information
which Landlord or mortgagee shall require. 
The failure of Tenant to execute, acknowledge and deliver to Landlord
and/or any mortgagee or perspective mortgagee of Landlord a statement in
accordance with the provisions herein within the period set forth herein shall
constitute an acknowledgment by Tenant which may be relied upon by any person
holding or intending to acquire any interest whatsoever in the Demised Premises
or the Center that the Lease has not been assigned, amended, changed or
modified, is in full force and effect and that the Minimum Annual Rent and
Additional Rent have been duly and fully paid not beyond the respective due
dates immediately preceding the date of the request for such statement and
shall constitute as to any persons entitled to rely on such statements a waiver
of any defaults by Landlord or defenses or offsets against the enforcement of
the Lease by Landlord which may exist prior to the date of the written request,
and Landlord, at its option, may treat such failure as a event of default.

7.4.          Mortgagee’s Unilateral Subordination.  Notwithstanding anything in this Lease to the
contrary, if a mortgagee shall so elect by notice to Tenant and the recording
of a unilateral declaration of subordination, this Lease and Tenant’s rights
hereunder shall be superior and prior in right to the mortgage or deed to
secure debt of which such mortgagee has the benefit, with the same force and
effect as if this Lease had been executed, delivered and recorded prior to the
execution, delivery and recording of such mortgage or deed to secure debt,
subject to such conditions as may be set forth in any such notice or
declaration.

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7.5.          Notice to Mortgagee.  If any mortgagee shall notify Tenant that it
is the holder of a mortgage or deed to secure debt affecting the Demised
Premises, Tenant shall thereafter provide such mortgagee with (a) copies of all
notices of default delivered by Tenant to Landlord and (b) prior to exercising
any right Tenant may have to terminate this Lease or to claim a partial or
total eviction, Tenant agrees that such mortgagee shall have a reasonable
period of time for remedying such act or omission following the giving of such
notice.

7.6.          Modifications.  Tenant agrees, upon fourteen (14) days written
notice that, upon the request of any mortgagee or prospective mortgagee, Tenant
will enter into an agreement amending any of the terms and conditions of the
Lease provided such amendment does not affect or change any of the economic
terms, business operations or use or any of the rights granted under this
Lease.

8.                                      ASSIGNMENT
AND SUBLETTING.

8.1.          Assignment and Subletting.  Tenant shall not assign or mortgage the Lease
or any interest therein or sublet the Demised Premises or any part thereof
without the prior written consent of the Landlord, which shall not be
unreasonably withheld.  For the purposes
of this paragraph, the sale or assignment of a controlling interest in the
Tenant corporation or a majority interest in the Tenant’s partnership, as the
case may be, shall be deemed an assignment, but the assignment to a parent or a
wholly owned subsidiary of the Tenant shall be permitted; provided that
Landlord is provided advance written notice of such assignment and provided
that such assignee assumes the obligation of Tenant in writing in a form
acceptable to the Landlord and that such assignment not relieve Tenant of its
obligations hereunder.

9.                                      DEFAULTS,
REMEDIES AND WAIVER.

9.1.          Events of Default.  The occurrence of any of the following shall
constitute a default (“Event of Default”) and breach of the Lease by Tenant:
(i) failure of Tenant to take possession of the Demised Premises within ten
(10) days after the commencement date of the Lease; (ii) the Tenant shall do or
permit to be done anything which creates a lien of any nature whatsoever upon
the Demised Premises or the Center; (iii) a failure by Tenant to pay, when due,
any installment of Minimum Annual Rent or Additional Rent hereunder or any such
other sum herein required to be paid by Tenant where such failure continues for
ten (10) days after written notice thereof from Landlord to Tenant provided
that Landlord shall not be obligated to send such notice more than two (2)
times in any twelve month period; (iv) a failure of the Tenant to in any respect
adhere or conform to Tenant’s environmental representation in Article 3.3 of
the Lease; (v) a failure by Tenant to observe and perform any other terms or
conditions of the Lease to be observed or performed by Tenant, where such
failure continues for thirty (30) days after written notice thereof from
Landlord to Tenant; provided, however, that if the nature of the default is
such that the same cannot be reasonably cured within such period, Tenant shall
not be deemed to be in default and no Event of Default shall have occurred, if
within such period Tenant shall commence such cure and thereafter diligently
prosecute the same to completion; (vi) the making by Tenant (or any guarantor
of Tenant) of any assignment for the benefit of creditors; and adjudication
that Tenant is bankrupt, insolvent, or unable to pay its debts; the filing by
or against Tenant (or any guarantor of Tenant) of a petition in bankruptcy or
of a petition for reorganization or (vii) arrangement under any law relating to
bankruptcy (unless,

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in the case of
a petition filed against Tenant, the same is dismissed within thirty (30) days
after the filing thereof); (viii) the appointment of a trustee or receiver to
take possession of substantially all of Tenant’s (or any guarantor’s) assets or
of Tenant’s interest in the Lease (unless possession is restored to Tenant
within thirty (30) days after such appointment); or (ix) the attachment,
execution or levy against, or other judicial seizure of, substantially all of
Tenant’s (or any guarantor’s) assets or of Tenant’s interest in the Lease
(unless the same is discharged within thirty (30) days after issuance thereof).

9.2.          Remedies. 
Upon the occurrence of any of the aforesaid Events of Default, Landlord
shall have the option to pursue any one or more of the following causes of
action without any further notice or demand whatsoever:

(i)            terminate the
Lease, in which event Tenant shall immediately surrender the Demised Premises
to Landlord, but if Tenant fails to do so, Landlord may, without prejudice to
any other remedy which it may have for possession or arrearage in Rent, enter
upon and take possession of the Demised Premises and expel or remove Tenant and
its effects and any other person, by force if necessary, without being liable
for prosecution or any claim of damages therefore; and Tenant hereby agrees to
indemnify Landlord for loss and damage which Landlord may suffer by reason of
such termination, whether through inability to relet the Demised Premises or
through decrease in Rent or otherwise; and/or

(ii)           terminate this
Lease as provided in clause (i) of this Paragraph 9.2 and recover from Tenant
all damages Landlord may incur by reason of Tenant’s default, including,
without limitation, a sum which, at the date of such termination, represents
the value of the excess, if any, of (1) the Minimum Annual Rent, all Additional
Rent and all other sums which would have been payable hereunder by Tenant for
the period commencing with the day following the date of such termination and
ending with the expiration date had this Lease not been terminated, over (2)
the aggregate reasonable rental value of the Demised Premises for the period
commencing with the day following the date of such termination and ending with
the expiration date had this Lease not been terminated, plus (3) the costs of
recovering possession of the Demised Premises and all other expenses incurred
by Landlord due to Tenant’s default, including, without limitation, reasonable
attorney’s fees, plus (4) the unpaid Minimum Annual Rent and all Additional
Rent earned as of the date of termination plus any interest and late fees due
hereunder, plus other sums of money and damages owing on the date of
termination by Tenant to Landlord under this Lease or in connection with the
Demised Premises, all of which excess sum shall be deemed immediately due and
payable; provided, however, that such payments shall not be deemed a penalty
but shall merely constitute payment of liquidated damages, it being understood
and acknowledged by Landlord and Tenant that actual damages to Landlord are
extremely difficult, if not impossible, to ascertain.  The excess, if any, of subclause (1) over
subclause (2) herein shall be discounted to present value at 200 basis points
below the Treasury Yield rate.  Treasury
Yield shall mean the rate of return in percent per annum of Treasury Constant
Maturities for the length of time specified as published in document H.15 (519)
(presently published by the Board of Governors of the U.S.  Federal Reserve System titled Federal Reserve
Statistical Release) for the calendar week immediately preceding the calendar
week in which the termination occurs.  If
the rate of return of Treasury Constant Maturities for the calendar week in
question is not published on or before the business day preceding the date the
Treasury Yield in question is to become effective, then the Treasury Yield
shall be based

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upon the rate
of return of Treasury Constant Maturities for the length of time specified for
the most recent calendar week for which such publication has occurred.  If no rate of return for Treasury Constant
Maturities is published for the specific length of time specified, the Treasury
Yield for such length of time shall be the weighted average of the rates of
return of Treasury Constant Maturities most nearly corresponding to the length
of the applicable period specified.  If
the publishing of the rate of return of Treasury Constant Maturities is ever
discontinued, then the Treasury Yield shall be based upon the index which is
published by the Board of Governors of the U.S. Federal Reserve System in
replacement thereof or, if no such replacement index is published, the index
which, in Landlord’s reasonable determination, most nearly corresponds to the
rate of return of Treasury Constant Maturities. 
In determining the aggregate reasonable rental value pursuant to
subclause (2) above, the parties hereby agree that, at the time Landlord seeks
to enforce this remedy, all relevant factors should be considered, including,
but not limited to, (a) the length of time remaining in the term of this Lease,
(b) the then current market conditions in the general area in which the
building of which the Demised Premises are a part is located, (c) the
likelihood of reletting the Demised Premises for a period of time equal to the
remainder of the term of this Lease, (d) the net effective rental rates then
being obtained by landlords for similar type space of similar size in similar
type buildings in the general area in which such building is located, (e) the
vacancy levels in the general area in which such building is located, (f)
current levels of new construction that will be completed during the remainder
of the term of this Lease and how this construction will likely affect vacancy
rates and rental rates, and (g) inflation; and/or

(iii)          enter the Demised
Premises as agent of Tenant by force, if necessary, without being liable to
prosecution or any claim for damages therefor, and relet the Demised Premises
as the agent for Tenant and receive the rent therefor and Tenant shall pay
Landlord any deficiency that may arise by reason of such reletting on demand at
the office of the Landlord; and/or

(iv)          as agent of Tenant,
do whatever Tenant is obligated to do by the provision of the Lease and
Landlord may enter the Demised Premises, by force if necessary, without being
liable to prosecution or any claims for damages therefor, in order to
accomplish this purpose.  Tenant agrees
to reimburse Landlord immediately upon demand for any expenses, which Landlord
may incur, including legal fees, in effecting compliance with the Lease on
behalf of Tenant and Tenant further agrees that Landlord shall not be liable
for any damages to Tenant from such action. 
Any termination of the Lease under this Paragraph 9.2 shall not release
Tenant from the payment of any sum then due Landlord or from any claim for
damages, Minimum Annual Rent, Additional Rent or any other sum previously
accrued or thereafter accruing against Tenant. 
In addition to any of the foregoing, Landlord shall be entitled to seek
any other available remedy at law or in equity.

Any reletting of the
Demised Premises by Landlord as the agent of the Tenant shall not terminate
this Lease and may be for such a term, rent amount, and other conditions as
Landlord deems desirable, without advertisement and by private
negotiations.  Tenant shall reimburse
Landlord for all Landlords’ costs, expenses, and attorney fees in connection
with such reletting, including, without limitations, all commissions and
advertising costs.  No action taken by or
on behalf of Landlord shall be construed to be an acceptance or a surrender of
the Demised Premises and no agreement to accept a surrender of the Demised
Premises shall be valid unless

 15
 

 

 

in writing and executed
by Landlord.  In determining the amount
of loss or damage which Landlord may suffer by reason of termination of the
Lease or the deficiency arising by reason of any reletting of the Demised
Premises by Landlord as above provided, allowance shall be made for expense of
repossession and any repairs and remodeling undertaken by Landlord following
repossession, and there shall be added to the amount due to Landlord as herein
provided all costs and expenses incurred by Landlord in the enforcement of the
Lease, including, without limitation, the fees of Landlord’s attorneys.  So long as other comparable tenant space
exists within the Center, which is unleased, Landlord shall have no obligation
with respect to reletting the Demised Premises.

9.3.          Waiver. 
The failure or delay on the part of Landlord to enforce or exercise at
any time any of the terms and conditions of the Lease shall in no way be
construed to be a waiver thereof, nor in any way to affect the validity of the
Lease or any part hereof, or the right of the Landlord to thereafter enforce
each and every such term or condition. 
No waiver of any breach of the Lease shall be held to be a waiver of any
other or subsequent breach.  The receipt
and acceptance by Landlord of rent at a time when rent is in default under the
Lease shall not be construed as a waiver of such default.

9.4.          Landlord’s Expenses.  If Landlord in its sole discretion finds it
necessary to engage consultants or take actions in order to enforce Landlord’s
rights hereunder, Tenant will reimburse Landlord as Additional Rent for the
reasonable expenses incurred thereby, including but not limited to court costs
and reasonable attorneys’ fee.

9.5.          Waiver of Right of Redemption.  Tenant hereby expressly waives any and all
rights of redemption conferred by law or otherwise.

10.                               MISCELLANEOUS
PROVISIONS.

10.1.        Landlord’s Liability.  Landlord’s liability with respect to the
Lease shall be limited solely to Landlord’s interest in the Center as such
interest is constituted from time to time, and neither Landlord nor any
employee or agent of Landlord shall have any personal liability
whatsoever.  The term “Landlord” as used
in the Lease means only the owner or mortgagee in possession for the time being
of the Center so that in the event of a sale of the Center and the assignment
of the Lease, then the Landlord shall be and hereby is entirely freed and
relieved of all obligations subsequently accruing.

10.2.        Quiet Enjoyment.  If, and so long as, Tenant pays the Minimum
Annual Rent and Additional Rent reserved hereunder and observes and performs
all the terms and conditions on Tenant’s part to be observed and performed
hereunder, Tenant shall and may peaceably and quietly have, hold and enjoy the
Demised Premises for the entire Term hereof, subject to all the provisions of
the Lease.

10.3.        Force Majeure.  If Landlord is delayed or prevented from
performing any of its obligations under the Lease by reason of strike or labor
troubles or any cause whatsoever beyond Landlord’s control, the period of such
delay or prevention shall be deemed added to the time herein provided for the
performance of any such obligation by Landlord. 
Landlord shall in no event be in default in the performance of any of
its obligations under the Lease unless and

 16
 

 

 

until Landlord
shall have failed to perform such obligation within thirty (30) days or such
additional time as is reasonably required to correct any such default, after
notice by Tenant to Landlord properly specifying wherein Landlord has failed to
perform any such obligation.

10.4.        Security Deposit.  Tenant has deposited with Landlord as
security for the performance by Tenant of the terms of the Lease the sum set
forth in Article 1.5 hereto.  Landlord
may use, apply or retain (without liability for interest) during the Term the
whole or any part of the Security Deposit so deposited to the extent required
for the payment of any rent or other sum as to which Tenant may be in default
hereunder or for any sum which Landlord may expend by reason of Tenant’s
default in respect of any of the terms of the Lease.  Provided Tenant shall comply with all the
terms of the Lease, such Security Deposit shall be returned to Tenant, without
interest, upon termination of the Lease and after surrender of possession of
the Demised Premises to Landlord. 
Landlord shall have no obligation to maintain said Security Deposit in
an escrow or segregated account or pay interest thereon to Tenant.  Tenant shall restore the Security Deposit to
the original amount if all or any portion thereof is used, applied or retained
by Landlord in accordance with the provisions of this Paragraph.

10.5.        Notices. 
Whenever notice shall or may be given to either party by the other, each
such notice shall be given by certified mail or overnight delivery with return
receipt requested, at the respective address of the party as contained in
Article 1.9 hereof or to such other address as either party may from time to
time designate by notice in writing to the other.  Any notice under this Lease shall be deemed
to have been given at the time it is placed with the carrier with sufficient
postage prepaid.

10.6.        Surrender and Holdover.  Upon termination of this Lease for any reason
whatsoever, Tenant shall surrender the Demised Premises and keys thereof to
Landlord in the same condition as at the Commencement Date, normal wear, tear
and other casualty excepted.  Should
Tenant refuse or fail to surrender the Demised Premises upon expiration of the
Term or earlier termination thereof, Tenant shall be a tenant at sufferance and
shall pay to Landlord as liquidated damages on demand each month during such
holdover period a sum equal to (i) one hundred fifty percent (150%) of the
Minimum Annual Rent due during the last month of the Term hereunder, plus
(ii) all Additional Rent and other sums and charges payable hereunder.  In the event of any unauthorized holding
over, Tenant shall indemnify Landlord against all claims for damages by any
other tenant to whom Landlord may have leased all or any part of the Demised
Premises effective upon the termination of the Term (including damages by
reason of Landlord’s inability to have access to the Demised Premises upon the
termination of the Term even if the lease with a new tenant of all or any part
of the Demised Premises does not commence until sometime thereafter).

If Tenant remains in
possession after the expiration of the Term with Landlord’s acquiescence and
without any written agreement of the parties, Tenant shall be a Tenant at will,
there shall be no renewal of this Lease by operation of law, and all of the
provisions in the immediately preceding paragraph (including the provisions
therein with respect to the payment of Minimum Annual Rent, Additional Rent and
other sums and charges) shall be fully applicable during such holdover.  Notwithstanding the notice provision of the
Official Code of Georgia Annotated Section 44-7-7, as the same may be now or
hereafter amended such tenancy at will may be terminated upon thirty (30) days
notice from Landlord or Tenant.

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10.7.        Lease Form. 
If any term or provision of the Lease or the application thereof to any
person or circumstance shall, to any extent, be invalid or unenforceable, the
remainder of the Lease, or the application of such term or provision to persons
or circumstances other than those as to which it is held invalid or unenforceable,
shall not be affected thereby and each term and provision of the Lease shall be
valid and be enforced to the fullest extent permitted by law.  The captions contained herein are for
convenience and reference only and shall not be deemed as part of the Lease or
construed as in any manner limiting or amplifying the terms and provisions of
the Lease to which they relate.

10.8.        Time. 
Time is of the essence of the Lease and wherever a day certain is stated
for payment or performance of any obligation of Tenant or Landlord (including,
without limitation, those set forth in Paragraph 12), the same enters into and
becomes a part of the consideration.

10.9.        Broker. 
Tenant represents and warrants to Landlord that Tenant has not dealt
with any broker, firm, company or person in connection with the negotiation for
or the obtaining of the Lease.  Tenant
represents and warrants to Landlord that no broker, firm, company or person was
involved in the negotiation for or the obtaining of the Lease.

10.10.      Landlord’s Reliance.  Landlord has executed the Lease in reliance
upon certain financial information, which has been submitted by Tenant to
Landlord prior to the execution of the Lease. 
Tenant confirms that the information submitted is true and correct and a
fair representation of Tenant’s financial condition at the time of signing of
the Lease.  From time to time, upon five
(5) days written request by Landlord, Tenant will submit to Landlord current
financial information satisfactory for Landlord to properly determine Tenant’s
financial condition.

10.11.      Relationship of Parties.  Nothing contained in the Lease shall be
deemed or construed as creating the relationship of principal and agent or of
partnership or joint venture between the parties hereto, it being understood
and agreed that neither the method of computing rent nor any other provision
contained herein nor any acts of the parties hereto shall be deemed to create
any relationship between the parties other than that of landlord and tenant.  No estate in land shall pass out of Landlord,
and Tenant shall have only a usufruct, not subject to levy and sale and not
assignable in whole or in part by Tenant, except as provided herein.

10.12.      No Reservation.  The tender of the Lease by Landlord shall not
represent a reservation or commitment for the Demised Premises upon/or by
Landlord until it is fully executed by both parties hereto.

11.                               SIGNS.

Landlord will place
Tenant’s name and suite number on the standard directory in the Center on a
sign approved by Landlord.  Aside from
the aforementioned sign, Tenant may not erect any sign on the interior or
exterior of the Demised Premises that is visible from the outside of the
Demised Premises nor may it erect a sign in any other location within the
Center or on the Demised Premises without the Landlord’s written consent.

 18
 

 

 

12.                               OPTION
TO RENEW.

12.1.        Conditions.  Subject to the provisions of this Paragraph
12, Landlord grants to Tenant the right and option to extend the Term of this
Lease with respect to all (but not less than all) of the Demised Premises for a
period of five (5) years (the “Renewal Term”). 
The Renewal Term shall commence at the expiration of the initial Term of
the Lease provided that: (a) such option must be exercised, if at all, by
written notice to Landlord given at least eight (8) months prior to the end of
the initial Term; (b) at the time of the exercise of such option and at the
commencement of the Renewal Term, the Lease shall be in full force and effect
and no event shall exist at the time of the exercise of such option which event
by notice and/or passage of time would constitute an Event of Default if not
cured within the applicable cure period and (c) all provisions of this
Paragraph 12 are complied with by Tenant.

12.2.        Renewal Provisions.  In the event the Tenant properly exercises
the foregoing renewal option, all the terms and conditions contained in this
Lease shall continue to apply during the Renewal Term, except that after the
Renewal Term, there shall be no further right of renewal and during the Renewal
Term, the Minimum Annual Rent shall be the “Market Rate of Rent” as defined
below in Section 12.3.  In the event the
Tenant: (a) properly exercises its option to extend the term of this Lease as
set herein, all references to the word “Term” in the Lease shall be deemed to
include the Renewal Term; or (b) improperly exercises its option to extend the
Term of this Lease as set forth herein or fails to exercise such option, then
this Lease shall automatically expire at the end of the Term as provided for
herein, and any such option shall automatically become null and void.

12.3.        Market Rate of
Rent and Procedure. “Market Rate of Rent” shall mean Landlord’s good faith
determination of the prevailing rental rate (taking into account all tenant
concessions, which may include, for example, free rent, tenant improvements, a
design allowance, or a brokerage commission) typically furnished for renewals
of tenancies of similar size, renewal term and location in the Center and/or
renewal rents for comparable tenancies in comparable buildings or office parks
in the vicinity of the Center, commencing on or about the commencement date of
the Renewal Term.  Such prevailing rental
rate shall be adjusted in order to reconcile any differences in the manner of
charging operating costs, taxes or other items of escalation or utilities, and
to reconcile differences in square footage, term, commencement date and
location.  Landlord’s good faith
determination shall be based upon rents being obtained by Landlord for renewal
tenancies that are to commence at approximately the commencement date of the
Renewal Term as well as previous renewal rental rates obtained by Landlord for
the Building or the Center and/or renewal rents for comparable tenancies in
comparable buildings, subject to the adjustments as set forth above.  Landlord agrees to give Tenant written notice
setting forth the Market Rate of Rent within thirty (30) days after Tenant has
timely and properly exercised its option to extend the Renewal Term.  Tenant shall have thirty (30) days after its
receipt of written notice from Landlord to withdraw its exercise of its option
to extend for the Renewal Term if said Market Rate of Rent is
unacceptable.  Tenant’s failure to give
said notice within the foregoing thirty (30) day period shall automatically be
deemed to be Tenant’s acceptance of Landlord’s determination of the Market Rate
of Rent for the Renewal Term.

 19
 

 

 

12.4.        Additional Terms.  In the event the Tenant properly exercises
its option to extend the term of the Lease for the Renewal Term:

A.            Tenant shall have no
further option to renew any term of this Lease beyond the expiration date of
the Renewal Term.

B.            Landlord shall not
be obligated to perform any leasehold improvement work in the Demised Premises
or give Tenant an allowance for any such work or for any other purposes.

C.            Except as otherwise
provided herein, all of the terms and provisions of this Lease shall remain the
same and in full force and effect during the Renewal Term.

D.            If Tenant exercises
its right to extend the term of this Lease for the Renewal Term, Tenant at the
request of Landlord shall execute and deliver an amendment to this Lease
reflecting the lease of the Demised Premises by Landlord to Tenant for the
Renewal Term on the terms provided above, which amendment shall be executed and
delivered prior to the commencement date for the Renewal Term.

12.5.        Termination.  The option to extend the term of this Lease
for the Renewal Term shall automatically terminate and become null and void and
of no force and effect upon the earlier to occur of: (i) the expiration or
termination of this Lease, (ii) the termination of the Tenant’s right to
possession of the Demised Premises, (iii) the assignment of this Lease by
Tenant in violation of the terms of this Lease, (iv) the sublease by Tenant of
all or part of the Demised Premises in violation of the terms of this Lease, or
(v) the failure of Tenant to timely or properly exercise the right to extend
the term pursuant to the provisions set forth hereinabove, or (vi) the default
by Tenant under the Lease beyond any applicable grace period.

13.                               PARKING

Tenant and its employees,
agents, and invitees shall park their vehicles only in those portions of the
parking areas designated for that purpose by Landlord pursuant to Exhibit ”F”
attached.  Tenant shall, within five days
of the request from Landlord, furnish Landlord with the license numbers of
Tenants’ and Tenant’s employees’ vehicles and thereafter notify Landlord of any
change in same.  In no event will Tenant
permit any cars associated with Tenant to be parked in any designated fire
safety areas or no parking zones.  This
provisions does not imply a reservation of any particular space in the parking
area, nor does it imply an obligation on the part of the Landlord to police the
utilization of spaces and Landlord shall have no liability to Tenant, if by
reason of utilization of parking spaces by others the parking areas are not at
any particular time available to Tenant, its employees or invitees.

14.                               TERMINATION
OF PRIOR LEASE

14.1.        Termination.  The parties hereto agree that upon the
Commencement Date of this Lease, as determined in paragraph 1.3 hereto, the
Prior Lease shall terminate on the Commencement Date (the “Termination Date”),
provided that the following events shall have occurred:  (i) the Commencement Date under this Lease
shall have occurred; (ii) Tenant shall

 20
 

 

 

have
completely vacated the premises covered by the Prior Lease (the “Existing
Premises”) and left the Existing Premises clean and neat and in the same
condition, order and repair as the Existing Premises is required to be
surrendered under the Prior Lease; (iii) Tenant has entered into possession and
occupancy of the Demised Premises under the terms and conditions of this Lease;
(iv) there shall exist no default by Tenant with respect to either the Prior
Lease or this Lease.  In no event shall
the foregoing termination be deemed to be a release of any of the Tenant’s
obligations as tenant with respect to the Existing Premises under the Prior
Lease for obligations that shall have accrued up to and including the
Termination Date, or which shall survive the termination of the Prior Lease by
its express terms.

15.                               SPECIAL
STIPULATIONS

15.1.        Special Stipulations.  The Special Stipulations, if any, shall
hereby be incorporated herein and made a part hereof as Exhibit “B,” and in the
event they conflict with any of the foregoing provisions, the Special
Stipulations shall control.

IN WITNESS WHEREOF,
and intending to be legally bound hereby, the parties have caused the Lease to
be duly executed and sealed the day and year first above written.

	
  LANDLORD:

  
	
   

  
	
  LA/GA BUSINESS CENTERS, INC.

  
	
   

  
	
   

  
	
  BY:

  	
  /s/ Mark B.
  Greco

  	
   

  
	
   

  	
  Name: Mark G. Greco

  
	
   

  	
  Title:   Vice
  President

  
	
   

  
	
  TENANT:

  
	
   

  
	
  MEDQUIST TRANSCRIPTIONS, LTD.,

  
	
  a corporation organized and existing under the

  
	
  laws of New Jersey

  
	
   

  
	
  By:

  	
  /s/ John M.
  Suender

  	
   

  	
  /s/ Dawn Parent

  	
  (attest)

  
	
   

  	
  Name: John M. Suender

  
	
   

  	
  Title:   Senior
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (seal)

  
							

 

Billing Address:

MedQuist Transcriptions, Ltd.

Five Greentree Centre, Suite 311

Marlton, NJ 08053

Attn: General Counsel

 21

 

EXHIBIT
“A”

1395 South
Marietta Parkway

Building 600, Suite 606/608

Marietta, Georgia 30067

[INSERT FLOOR PLAN]

 

 

EXHIBIT
“A1”

1395 South
Marietta Parkway

Building 600, Suite 602

Marietta, Georgia 30067

[INSERT FLOOR PLAN]

 

 

EXHIBIT
“B”

SPECIAL STIPULATIONS

These Special Stipulations are made and entered into
contemporaneously with a Lease dated the           
day of             ,
2002, between LA/GA BUSINESS CENTERS, INC., as
Landlord and MEDQUIST TRANSCRIPTIONS LTD., as
Tenant.

In the case of any conflict between these Special
Stipulations and the Lease, these Special Stipulations shall control.  All terms used herein shall be as defined in
the Lease.

1.                                      LANDLORD
AND TENANT CONSTRUCTION OBLIGATION:

(a)           Landlord shall complete the Demised
Premises pursuant to Tenant’s approved plans and specifications attached hereto
as Exhibit “C” and made a part hereof. 
Tenant shall be entitled to a construction allowance equal to Two
Hundred Seventy-Six Thousand Six Hundred Fifty-Four Dollars and no cents
($276,654.00; $14.00 psf) (the “Allowance”). 
Any and all costs exceeding the Allowance shall be at Tenant’s sole cost
and expense and shall be due and payable as follows:  (i) one half due at execution of the Lease or
change order as the case may be, and (ii) the balance due prior to
occupancy.  Any changes, additions,
and/or deletions to Exhibit “C” desired by Tenant shall be at Tenant’s sole
expense.  If Tenant fails to comply with
the aforesaid date, or requires changes to Exhibit “C” which delay the
completion of the Demised Premises, Tenant’s obligation to pay Rent from the
Commencement Date shall not be affected. 
It is understood and agreed that all construction plans and
specifications are subject to Landlord’s approval.

(b)           Upon substantial completion of the
Demised Premises in accordance with Exhibit “C” Tenant shall accept the Demised
Premises in their then-existing condition as suited for the uses intended by
Tenant, subject only to the punch list items set forth on a “Tenant Acceptance
Agreement” in the form of Exhibit “B” attached hereto and except for any latent
defects which Tenant notifies Landlord of in writing within one (1) year of
taking possession.  By its entry into the
Demised Premises, Tenant acknowledges that it has examined the Demised Premises
and accepts the same as being in the condition called for by this Lease,
subject only to the punch list items, if any, set forth in the “Tenant
Acceptance Agreement.”

2.                                      ANNUAL
RENTAL SCHEDULE:

In accordance with Article 1.6 and Article 2.2 of the
Lease hereof the Landlord and Tenant agree that the Minimum Annual Rental
schedule for the Demised Premises shall be:

	
  Period

  	
   

  	
  Monthly

  	
   

  	
  Annually

  	
   

  
	
  Months 1 through
  6

  	
   

  	
  $

  	
  12,169.92

  	
   

  	
  $

  	
  146,039.00

  	
   

  
	
  Months 7 through
  12

  	
   

  	
  $

  	
  15,232.44

  	
   

  	
  $

  	
  182,789.25

  	
   

  
	
  Months 13
  through 24

  	
   

  	
  $

  	
  15,765.57

  	
   

  	
  $

  	
  189,186.84

  	
   

  
	
  Months 25
  through 36

  	
   

  	
  $

  	
  16,317.37

  	
   

  	
  $

  	
  195,808.14

  	
   

  
	
  Months 37
  through 48

  	
   

  	
  $

  	
  16,888.48

  	
   

  	
  $

  	
  202,661.76

  	
   

  
	
  Months 49 through 60

  	
   

  	
  $

  	
  17,479.57

  	
   

  	
  $

  	
  209,754.84

  	
   

  

 

 

 

3.                                      EARLY
OCCUPANCY:

In the event the premises are substantially completed
prior to December 1, 2002 and the Landlord delivers the Demised Premises to the
Tenant before December 1, 2002 or Tenant opens for business at the Demised
Premises prior to December 1, 2002, Tenant shall upon early occupancy pay a per
diem rate of $500.79 per day base rent plus Tenant’s prorata share of
operating expense pass through for the period from the date of early occupancy
to December 1, 2002.  Tenant’s early
occupancy of the Demised Premises under this provision shall not change the
original occupancy date or the Term of the Lease.

4.                                      RULES
AND REGULATIONS:

The Rules and Regulations labeled Exhibit “D”,
attached hereto and made a part hereof, are hereby incorporated into and made a
part of this Lease, and Tenant agrees to comply therewith.  In the event the Rules and Regulations are
changed or amended, the Landlord shall use reasonable standards in determining
the new or amended rules or regulations.

5.                                      HVAC:

Upon occupancy, the Landlord will certify to Tenant in
writing by providing a copy of the inspection report on the HVAC systems
serving the Demised Premises have been checked and serviced by a licensed HVAC
contractor.

6.                                      DUMPSTER
FEES:

The Landlord shall bill Tenant, as Additional Rent,
$35.00 per month for dumpster access subject to change each January 1st of each
year.

7.                                      RIGHT
OF FIRST REFUSAL:

Tenant shall have a continuous right of first refusal
(the “Right of First Refusal”) to lease the area outlined in green on Exhibit “A-1”
and representing approximately 6,770 rentable square feet of space in Building
600, Suite 602 of the American Business Center, subject to the following terms
and conditions:

(a)           At the time of the exercise of the
Right Of First Refusal, Tenant shall not be in default in the performance of
any of the terms, covenants, or conditions contained in the Lease.

(b)           At any time during the Term of the
Lease, Landlord shall notify Tenant, in writing, as specified in Paragraph 1.9
of this Lease when another bonafide user desires to lease all or a portion of
the above referenced space.  Landlord
shall also provide Tenant information concerning the terms and conditions under
which the bonafide user agrees to lease said space.  Tenant must notify Landlord, in writing, as
specified in Paragraph 1.9 of this Lease of its decision regarding the space
under consideration within five (5) business days from Landlord’s
notification.  If Tenant fails to notify
Landlord within the stated five (5) business day period, then Tenant waives its
right to lease the space covered in such notice.  If Tenant waives its right to lease said
space, Landlord may then proceed to lease the space to said bonafide user or
any

 25
 

 

 

other interested party
upon any terms agreed to between the third party and the Landlord and if the
Tenant waives its right to lease said space, the Tenant’s Right of First
Refusal, as it pertains to the portion of the space covered by the Landlord’s
notice shall be waived and terminated. 
Notwithstanding the above, if Landlord does not rent the space that was
the subject to any particular notice given to Tenant within one (1) year from
the date such notice was given to Tenant, then Landlord must again offer such
space to Tenant in accordance with the foregoing procedure.

(c)           If Tenant elects to lease the space
covered by the Right of First Refusal in response to the notice given by
Landlord as set forth above in (b), then Tenant must commence paying rent on
said space within sixty (60) days of its election to lease said space or the completion
of improvements (if any), whichever is later. 
Tenant shall lease said space under the same terms and conditions
offered to the bonafide user, except that the rental rate shall be the higher
of the offered rental rate or Tenant’s then escalated rental rate.

(d)           Once Tenant has exercised its right
to lease the space covered by Landlord’s notice, Landlord shall immediately
prepare a Lease Amendment for execution and the leasing of such space shall not
be effective until such amendment is signed by both Landlord and Tenant.  Tenant shall deliver to Landlord, within ten
(10) business days of its acceptance of its Right of First Refusal, a final
floor plan so that Landlord may commence construction.

 26

 

EXHIBIT
“C”

1.             Incorporated
herein by reference are the drawings prepared for MEDQUIST TRANSCRIPTIONS, LTD.
dated January 24, 2002, by Harris Fritz Associates, labeled 2001-158.

EXHIBIT
“D”

RULES AND REGULATIONS

All terms used herein shall be interpreted consistent
with the Lease attached hereto.  If the
Rules and Regulations conflict with the Lease, the Lease shall govern.

1.             The
sidewalks, entrances, passages, courts, vestibules, stairways, corridors or
halls shall not be obstructed or encumbered by any Tenant or used for any
purpose other than ingress and egress to and from the Demised Premises.

2.             No
awnings or other projections shall be attached to the outside walls of the Building.  No curtains, blinds or shades shall be
attached to or hung in, or used in connection with, any window or door of the
Demised Premises, without the prior written consent of the Landlord.  Such curtains, blinds, shades, or other
fixtures must be of a quality, type, design and color, and attached in the
manner approved by Landlord.

3.             No
sign, advertisement, notice or other lettering shall be exhibited, inscribed,
painted or affixed by any Tenant on any part of the outside of the Demised
Premises or Building without the prior written consent of the Landlord.  In the event of the violation of the
foregoing by any Tenant, Landlord may remove the same without any liability,
and may charge the expense incurred by such removal to the Tenant violating
this rule.  Signs on the building
directories shall be inscribed, painted or affixed for each Tenant by the
Landlord at the expense of such Tenant, and shall be of a size, color and style
determined by the Landlord.

4.             The
windows and doors that reflect or admit light and air into the halls,
passageways or other public places in the Building shall not be covered or
obstructed by any Tenant, nor shall any bottles, parcels, or other articles be
placed on the window sills.

5.             The
water and wash closets and other plumbing fixtures shall not be used for any
purposes other than those for which they were constructed, and no sweepings,
rubbish, rags, or other substances shall be thrown therein.  All damages resulting from any misuse of the
fixtures shall be borne by the Tenant who, or whose servants, employees,
agents, visitors or licensees, shall have caused the same.

6.             No
Tenant shall make, paint, drill into, or in any way deface any part of the
Demised Premises or the Building.  No
boring, cutting or stringing of wires shall be permitted, except with the prior
written consent of the Landlord, and as the Landlord may direct.  No Tenant shall lay tile, or other similar or
dissimilar floor covering, so that the same shall come in direct contact with
the floor of the Demised Premises.

7.             No
noise, including, but not limited to music or to the playing of musical
instruments, or radio or television, which, in the judgement of the Landlord,
might disturb other tenants in the Building, shall be made or permitted by any
Tenant.  Nothing shall be done or
permitted in the Demised Premises by any Tenant which would impair or interfere
with the use or enjoyment by any other tenant of any other space.

8.             No
additional locks or bolts of any kind shall be placed upon any of the doors by
any Tenant nor shall any changes be made in existing locks or the mechanism
thereof Each 

 

 

Tenant must, upon the
termination of its tenancy, restore to the Landlord all keys of offices and
toilet rooms, either furnished to, or otherwise procured by, such Tenant, and
in the event of the loss of any keys, so furnished, such Tenant shall pay to
the Landlord the cost thereof

9.             Except
as designated by Landlord, no Tenant shall occupy or permit any portion of the
space demised to it to be occupied as an office for a public stenographer or
public typist, for the sale of tobacco in any form, for the sale of newspaper
and magazines, or as a barber, beauty or manicure shop, or as an employment
bureau.  No Tenant shall engage or pay
any employees on the Demised Premises, except those actually working for such
Tenant in said space, nor advertise for laborers giving an address at said
space.  Tenant shall not permit the
Demised Premises or any part thereof to be used for the possession, storage,
manufacture or sale of liquor, narcotics or dope.

10.           Landlord
shall have the right to prohibit any advertising by any Tenant which, in
Landlord’s judgement, tends to impair the reputation of the Building or its
desirability as a Building for offices, and upon written notice from Landlord,
Tenant shall refrain from or discontinue such advertising.

11.           The
Demised Premises shall not be used for lodging or sleeping or for any immoral
or illegal purpose.  No animals or birds
shall be brought upon the Demised Premises.

12.           The
requirements of the Tenants will be attended to only upon application at the
office of the Building or the office of the Landlord.  Employees of Landlord shall not perform any
work or do anything outside of the regular duties, unless under special
instructions from the office of the Landlord.

13.           Canvassing,
soliciting and peddling in the Center is prohibited and each Tenant shall
cooperate to prevent same.

14.           There
shall not be used in any space, or in the public halls of the Building, either
by any Tenant or by jobbers or others, in the delivery or receipt of
merchandise, any hand trucks, except those equipped with rubber tires and side
guards and approved by the Landlord.

15.           Unless
Landlord shall furnish electricity hereunder as a service included in the rent,
Tenant shall at the Tenant’s expense, provide artificial light and electric
current for the employees of Landlord and/or Landlord’s contractors while doing
janitor service or other cleaning in said Demised Premises and while making
repairs or alterations in said Demised Premises.

16.           Tenant
shall not conduct any restaurant, luncheonette or cafeteria for the sale or
service of food or beverages to others, or cause or permit any odors of cooking
or other process or any unusual or objectionable odors to emanate from the
Demised Premises.  Tenant shall not
install or permit the installation or use of any food beverage, cigarette,
cigar or stamp dispensing machine except in areas specifically designed for
same and approved by the Landlord.

17.           No
Tenant shall take any action which would interfere with the heating and cooling
systems in the Demised Premises.

 29
 

 

 

18.           No
Tenant shall place anything on the roof of the Buildings.  Antennas shall only be permitted with
Landlord’s approval.

19.           Installation
of any equipment which could disturb other tenants shall be made only with the
approval of Landlord and in a fashion designated by Landlord so as not to
affect other Tenants.

 30

 

EXHIBIT
“E”

TENANT ACCEPTANCE AGREEMENT

Agreement made this 30th day of December, 2002,
between LA/GA BUSINESS CENTERS, INC., A GEORGIA CORPORATION, (hereinafter
referred to as “Landlord”) and MedQuist a New Jersey corporation. (hereinafter
referred to as “Tenant”).

WHEREAS, Landlord and Tenant entered into a lease
dated September 8, 2002 (hereinafter referred to as the “Lease”) for Suite
606/608 containing approximately 19,761 square feet in the Project known as
American Business Center, 1395 South Marietta Parkway, Marietta, Georgia 30067
(hereinafter referred to as the “Premises”).

NOW THEREFORE, pursuant to the provisions of the
Lease, Landlord and Tenant mutually agree as follows:

1.             The
Commencement Date of the Lease Term is January 1, 2003.  The Lease Term shall end on December 31,
2007.

2.             Tenant
is in possession of, and has accepted, the Demised Premises demised by the
Lease, and acknowledges that all the work to be performed by the Landlord in
the Demised Premises as required by the terms in the Lease has been
satisfactorily completed except for any punch list items described in Schedule “A”
attached hereto and except for any latent defect of which Tenant notifies
Landlord of, in writing, within one (1) year of taking possession.  Tenant further certifies that all conditions
of the Lease required of Landlord as of this date have been fulfilled and there
are no defenses or setoffs against the enforcement of the Lease by Landlord.

3.             Landlord
and Tenant are both in agreement that pursuant to Section 14.1 of the Lease,
the Prior Lease is terminated effective on the Commencement Date.

IN WITNESS WHEREOF, the Parties hereto have signed and
sealed this Agreement, the 15th of January, 2002.

	
  Signed, sealed and delivered

  in the presence of:

  	
  TENANT:

  

  MEDQUIST TRANSCRIPTIONS, LTD.

  
	
  Witness

  	
   

  
	
   

  	
  By:

  	
  /s/ John M. Suender

  	
  (SEAL)

  
	
  By:

  	
  /s/ Todi Settlemyre

  	
   

  	
   

  
	
  Todi Settlemyre

  	
  Name:

  	
  John M. Suender 

  	
   

  
	
  Director of Technical Support

  	
   

  
	
   

  	
  Title:

  	
  Executive Vice President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signed, sealed and delivered
 in the presence of: 

  	
  LANDLORD: LA/GA Business Centers, inc.,

  a Georgia Corporation

  
								

 

 

 

	
  Witness

  	
  By:Ackerman Real Estaet Services

  Company, Inc.

  	 

	
   

  	
   

  	 

	
   

  	
  By:

  	
  /s/ Sharyn Harris, agent

  	
   

  
	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  Its:

  	
   

  	
   

  	 

							

 

 32Exhibit
10.36

FIRST AMENDMENT TO LEASE AGREEMENT

THIS FIRST AMENDMENT TO LEASE AGREEMENT (the “First Amendment”) is made and entered into
effective as of the          ,  day of March, 2006, by and between LA/GA
BUSINESS CENTERS, INC., a Georgia corporation (“Landlord”), and MEDQUIST
TRANSCRIPTIONS, LTD., a New Jersey corporation (“Tenant”).

W I T N E S S E T H:

WHEREAS,
Landlord, as landlord, and Tenant, as tenant, entered into that certain lease
agreement dated September 8, 2002 (as the same may have been amended, modified
or supplemented, the “Lease”),
relating to certain space known as Suites 606/608 collectively
containing approximately 19,761 rentable square feet (the “Premises”) located
in building 600 (the “Building”)
within the office park known as American Business Center (the “Center”) at 1395  South
Marietta Parkway, Marietta, Georgia 30067; and

WHEREAS,
Landlord and Tenant desire to enter into this First Amendment for the purpose
of evidencing their mutual understanding and agreement regarding Tenant’s
installation of a generator and certain other matters relating thereto as set
forth hereinbelow.

NOW,
THEREFORE, for and in
consideration of the premises hereto, the keeping and performance of the
covenants and agreements hereinafter contained, and for Ten and No/1 00 Dollars
($10.00) and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto, intending to be legally
bound, agree and amend the Lease as follows:

1.             Defined Terms. All terms used herein and denoted by their initial
capitalization shall have the meanings set forth in the Lease unless set forth
herein to the contrary.

2.             Generator.

(a)           Provided Tenant is occupying the
Premises, Landlord hereby grants to Tenant a non-exclusive license to install,
maintain, repair, replace and operate one (1) emergency back-up generator as
more particularly set forth on Exhibit “A”
attached hereto and incorporated by reference herein (together with any related
wires, conduits and other equipment necessary or desirable for the proper
operation of such generator, collectively the “Generator”) in a location
designated on Exhibit “B”
attached hereto and made a part
hereof (the “Generator Area”) upon and
subject to all of the terms and conditions set forth in this Section. All
aspects of the Generator shall be subject to the prior written approval of
Landlord, which approval shall not be unreasonably withheld, conditioned or
delayed. Tenant shall not be obligated to pay any Additional Rent for the space
occupied by the Generator.

(b)           The Generator shall be used only by
Tenant for Tenant’s own business purposes to provide a source of back-up power
for equipment located in the Premises in the event Tenant’s primary electrical
service is interrupted; Tenant shall not have the right to use or allow any
other person or entity to use the Generator for a fee or otherwise, except as
otherwise expressly set forth in the Lease (as amended hereby). The rights
under this Section are personal to the Tenant named herein and are not
assignable, except as otherwise expressly set forth in the

 

 

Lease (as amended hereby). The Generator
installed shall be and remain the property of Tenant, and Tenant shall, prior
to the expiration or termination of the Lease, as amended hereby, or of the
license granted by this Section, remove the Generator and surrender the
Generator Area in substantially the same condition existing prior to the
installation of the Generator. Tenant shall be liable for, and shall promptly
reimburse Landlord for, the actual reasonable cost of repairing all damage done
to the Generator Area or to any other portion of the Center by the
installation, operation, maintenance, use and/or removal of the Generator,
including restoring
the landscape to its previous condition. Tenant shall not store any fuel for
the Generator on any portion of the Center without the prior written consent of
Landlord, which approval shall not be unreasonably withheld, conditioned or
delayed provided Tenant complies with all applicable laws, codes, rules,
regulations, and ordinances from any and all applicable governing authorities
and complies with all applicable provisions of the Comprehensive Environmental
Response, Compensation and Liability Act, 42 U.S.C. 9601 et seq. (“CERCLA”) and
the Resource Conservation and Recovery Act, 42 U.S.C. 6901 et seq. (“RCRA”).

(c)           Tenant shall, at its sole cost and
expense, obtain all governmental permits or licenses required for the
installation, repair, maintenance, operation and removal of the Generator and
shall provide Landlord with evidence thereof. Landlord agrees to reasonably
cooperate with Tenant in obtaining all such permits and authorization, at no
cost or expense to Landlord. Tenant’s installation, repair, maintenance,
operation, use and removal of the Generator shall be subject to and performed
in accordance with the terms and conditions of the Lease and all applicable
Governmental Requirements (as defined below) in effect from time to time.
Tenant shall, at its sole cost and expense, and at its sole risk, install the
Generator in a good and workmanlike manner, and in compliance with all
applicable Governmental Requirements, including, but not limited to, all
building, electric, communications, and safety codes, ordinances, standards,
regulations and requirements of any governmental authority. Tenant shall
conduct the installation, maintenance, operation, use and removal of the
Generator in a good and workmanlike manner so as to not materially interfere
with any other tenant or occupant of the Building. The operation of the
Generator shall not adversely disturb or interfere with the systems of the
Building or with any other tenant or occupant of the Building and/or the
Center. Attached hereto as Exhibit “A”
are the plans and specifications for the Generator. Tenant shall deliver to
Landlord Tenant’s plans and specifications for the aesthetic screening of the
Generator for review and approval by Landlord (which approval shall not be
unreasonably withheld, conditioned, or delayed) not less than fifteen (15) days
prior to commencing installation of the Generator. The Generator shall be
installed substantially in accordance with the plans and specifications
approved by Landlord in its reasonable discretion, and the installation shall
be performed by contractors reasonably approved by Landlord. In no event shall
the installation, maintenance, operation, use and/or removal of the Generator
damage the Building or existing structure on the Building, or materially
interfere with the maintenance of the Building and/or the Center, any system
currently serving the Building, any equipment currently being operated from or
within the Building or from any other building in the Center, or in any manner
invalidate or otherwise adversely affect any existing warranties in place on
the Building or on any improvements to the Building.

(d)           Landlord shall not be liable to
Tenant for any stoppages or shortages of power furnished to the Generator or to
the Generator Area because of any act, omission or requirement of the public
utility serving the Building, or the act or omission of any other tenant,

 2
 

 

 

licensee or contractor of the Building, or
for any other cause beyond the reasonable control of Landlord, and Tenant shall
not be entitled to any rental abatement for any such stoppage or shortage of
power; provided, however, nothing contained in this paragraph shall be deemed
to modify or limit any rental abatement rights Tenant may otherwise have
pursuant to the Lease. Landlord shall have the right, but not the obligation,
to enter the Generator Area at any time in the event of an emergency and at all
reasonable times and upon reasonable notice for the purpose of: (i) inspecting
same, (ii) making repairs to the Generator Area and performing any work
therein, and/or (iii) exhibiting the Generator Area for the purpose of sale,
lease, ground lease of financing. Tenant shall maintain and operate the
Generator in strict compliance with Landlord’s reasonable rules and
regulations, now or hereafter promulgated, and all applicable Governmental
Requirements. Tenant shall pay for all utility service (including, without
limitation, electricity) required for Tenant’s use of the Generator in
compliance with the terms of the Lease, as amended hereby.

(e)           Landlord, at Landlord’s cost, may from time to time
relocate the Generator and/or Generator Area, or any part thereof, to other
areas in, at or around the Center. Upon relocation of the Generator and/or
Generator Area, Tenant’s means of access and cabling will be relocated by
Landlord as required to operate
and maintain the Generator. Except as expressly provided in this subsection
(e), in no event will the relocation of the Generator and/or Generator Area, or
any part thereof, affect, alter, modify, or otherwise change any of the other
terms and conditions of this Section 2.

(f)            Tenant shall, at Tenant’s expense,
be solely responsible throughout the Term for maintaining, servicing and
repairing the Generator and for repairing any damage to the Building or any
systems or equipment serving the Building caused by the Generator or by any
act, negligence or misconduct of Tenant, Tenant’s employees, agents or
contractors, while installing, using, servicing, repairing, maintaining or
removing the Generator. Subject to Section 4.3 of the Lease, Tenant shall
protect, defend, indemnify and save Landlord and its officers, directors,
agents, employees, other tenants, licensees and invitees harmless from and
against any and all obligations, costs (including reasonable costs of
litigation and attorneys’ fees), expenses, claims, damages and liabilities of
any nature whatsoever arising out of or in connection with the existence,
installation, construction, operation, repair, maintenance and/or removal of
the Generator, unless such loss, injury, or damage was caused by the negligence
or willful misconduct of Landlord, its agents, employees, invitees, or
contractors. Tenant’s license under this Section shall automatically terminate
upon the expiration or earlier termination of the Lease. “Governmental Requirements” shall
mean any and all applicable laws, codes, rules, regulations and ordinances from
any and all applicable governing authorities.

3.             Authority. Tenant hereby represents
and warrants that (i) Tenant is a duly organized and validly existing
corporation, (ii) Tenant is qualified to do business in the State of Georgia,
(iii) Tenant has full right, power and authority to enter into this First
Amendment, and (iv) each person signing on behalf of Tenant is authorized to do
so. Upon Landlord’s request, Tenant shall provide Landlord with evidence
reasonably satisfactory to Landlord confirming the foregoing representations
and warranties.

4.             Miscellaneous. This First Amendment
shall be governed by and construed in accordance with the laws of the State of
Georgia, and shall be binding upon and inure to the

 3
 

 

 

benefit of the
parties hereto and their respective successors, successors-in-title,
representatives and permitted assigns. In the event of any inconsistency or
conflict between the terms of this First Amendment and of the Lease, the terms
of this First Amendment shall control. Time is of the essence of all of the
terms of this First Amendment. This First Amendment constitutes and contains
the sole and entire agreement of the parties hereto with respect to the subject
matter hereof and no prior or contemporaneous oral or written representations
or agreements between the parties and relating to the subject matter hereof
shall have any legal effect. The submission of this First Amendment for
examination does not constitute an offer to enter into a contract and this
First Amendment shall be effective only upon execution hereof by Landlord and
Tenant. Except as hereinabove provided, all other terms and conditions of the
Lease shall remain unchanged and in full force and effect, and are hereby
ratified and confirmed by the parties hereto. Tenant hereby acknowledges and
agrees that, as of the date hereof, to Tenant’s actual knowledge, the Lease is
subject to no offsets, claims, counterclaims or defenses of any nature
whatsoever. This First Amendment may not be changed, modified, discharged or
terminated orally in any manner other than by an agreement in writing signed by
all parties hereto or their respective heirs, representatives, successors and
permitted assigns. If any clause or provision of this First Amendment is
illegal, invalid or unenforceable under present or future laws, the remainder
of this First Amendment shall not be affected thereby, and in lieu of each
clause or provision of this First Amendment which is illegal, invalid or
unenforceable, there shall be added as a part of this First Amendment a clause
or provision as nearly identical to the said clause or provision as may be
legal, valid and enforceable.

(Signatures
Appear on Following Page)

 4
 

 

 

IN WITNESS WHEREOF, Landlord
and Tenant have caused this First Amendment to be duly authorized, executed,
sealed and delivered as of the day and year first above written.

LANDLORD:

LA/GA BUSINESS CENTERS, INC.,

a Georgia corporation

	
  By:

  	
  /s/ Mark B. Greco

  	
   

  
	
   

  	
  Mark B. Greco, Vice President

  
	
   

  	
   

  

 

TENANT:

MEDQUIST TRANSCRIPTIONS, LTD.,

a New Jersey corporation

	
  By:

  	
  /s/ Frank Lavelle

  	
   

  
	
   

  	
  Frank Lavelle, President

  
	
   

  	
   

  
	
   

  	
  [CORPORATE SEAL]

  

 

 5

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