Document:

NationsHealth, Inc. Exhibit 10.10

 

Exhibit 10.10

ORANGE BLOSSOM BUSINESS CENTER

NET COMMERCIAL LEASE

	 	 	 
	LANDLORD:

	 	Transwestern Commercial Services (agent for owner/landlord)

501 Brickell Key Drive, Suite 210

Miami, Florida 33131

(305) 808-7310
	 
	 	 
	TENANT:

	 	NationsHealth, Inc.

13650 NW 8th Street, Suite 109

Sunrise, Florida 33325
	 
	 	 
	PREMISES:

	 	ORANGE BLOSSOM BUSINESS CENTER

Suite 50

4300 Okeechobee Road

Fort Pierce, FL 34947
	 
	 	 
	DATE OF EXECUTION:

	 	October 13, 2006

 

 

 

Exhibit 10.10

INDEX

	 	 	 	 	 	 	 
	 	 	 	 	PAGE
	 
	 	 	 	 	 	 
	LEASE SUMMARY	 	iv-vi

	 
	 	 	 	 	 	 
	ARTICLE I

	 	TERM	 	 	 	 
	1.1

	 	Grant and Premises
	 	 	01	 
	1.2

	 	Term
	 	 	01	 
	1 .3

	 	Construction of Premises
	 	 	01	 
	1.4

	 	Fixturing Period
	 	 	01	 
	 
	 	 	 	 	 	 
	ARTICLE II

	 	RENT	 	 	 	 
	2.1

	 	Covenant to Pay
	 	 	01	 
	2.2

	 	Minimum Rent and CPI Escalation
	 	 	01	 
	2.3

	 	Payment of Business Taxes
	 	 	02	 
	2.4

	 	Payment of Operating Costs
	 	 	03	 
	2.5

	 	Rent Past Due
	 	 	03	 
	2.6

	 	Security Deposit
	 	 	02	 
	2.7

	 	Net Lease
	 	 	03	 
	2.8

	 	Payment of Rent
	 	 	03	 
	 
	 	 	 	 	 	 
	ARTICLE III

	 	USE OF PREMISES	 	 	 	 
	3.1

	 	Permitted Use and Business Name
	 	 	04	 
	3.2

	 	Hours of Business
	 	 	04	 
	3.3

	 	Opening and Continuous Occupancy
	 	 	04	 
	3.4

	 	Tenant’s Covenants as to Use and Occupancy
	 	 	04	 
	3.5

	 	Display Windows
	 	 	05	 
	3.6

	 	Compliance with Laws
	 	 	05	 
	3.7

	 	Advertising, Trade Names and Restricted Marks
	 	 	05	 
	3.8

	 	Signs
	 	 	05	 
	3.9

	 	Prohibited Uses
	 	 	05	 
	3.10

	 	Indemnity for Toxic Waste
	 	 	05	 
	 
	 	 	 	 	 	 
	ARTICLE IV

	 	ACCESS AND ENTRY	 	 	 	 
	4.1

	 	Right of Examination
	 	 	06	 
	4.2

	 	Right to Show Premises
	 	 	06	 
	4.3

	 	Entry not Forfeiture
	 	 	06	 
	 
	 	 	 	 	 	 
	ARTICLE V

	 	MAINTENANCE. REPAIRS AND ALTERATIONS	 	 	 	 
	5.1

	 	Maintenance and Repairs by Landlord
	 	 	06	 
	5.2

	 	Maintenance and Repairs by Tenant
	 	 	06	 
	5.3

	 	Approval of Tenants Alterations
	 	 	07	 
	5.4

	 	Repair Where Tenant at Fault
	 	 	07	 
	5.5

	 	Removal of Improvements and Fixtures
	 	 	07	 
	5.6

	 	Liens
	 	 	07	 
	5.7

	 	Notice by Tenant
	 	 	08	 
	 
	 	 	 	 	 	 
	ARTICLE VI

	 	UTILITIES/HVAC	 	 	 	 
	6.1

	 	Utilities
	 	 	08	 
	6.2

	 	Heating, Ventilating and Air Conditioning
	 	 	08	 

 

 

 

Exhibit 10.10

	 	 	 	 	 	 	 
	 	 	 	 	PAGE
	 
	 	 	 	 	 	 
	ARTICLE VII

	 	INSURANCE AND INDEMNITY	 	 	 	 
	7.1

	 	Tenants Insurance
	 	 	08	 
	7.2

	 	Increase in Insurance Premiums
	 	 	09	 
	7.3

	 	Cancellation of Insurance
	 	 	09	 
	7.4

	 	Loss or Damage
	 	 	10	 
	7.5

	 	Indemnification of Landlord
	 	 	10	 
	 
	 	 	 	 	 	 
	ARTICLE VIII

	 	DAMAGE AND DESTRUCTION	 	 	 	 
	8.1

	 	Rent Abatement
	 	 	10	 
	8.2

	 	Damage to Premises
	 	 	10	 
	8.3

	 	Termination for Damage to Premises
	 	 	11	 
	8.4

	 	Destruction of Building
	 	 	11	 
	8.5

	 	Architect’s Certificate
	 	 	11	 
	 
	 	 	 	 	 	 
	ARTICLE IX

	 	ASSIGNMENT. SUBLETTING. AND TRANSFERS	 	 	 	 
	9.1

	 	Assignments, Subleases and Transfers
	 	 	11	 
	9.2

	 	Landlord’s Right to Terminate
	 	 	12	 
	9.3

	 	Conditions of Transfer
	 	 	12	 
	9.4

	 	Change of Control
	 	 	12	 
	9.5

	 	No Advertisement
	 	 	13	 
	9.6

	 	Assignment by Landlord
	 	 	13	 
	 
	 	 	 	 	 	 
	ARTICLE X

	 	DEFAULT	 	 	 	 
	10.1

	 	Defaults
	 	 	13	 
	10.2

	 	Remedies
	 	 	14	 
	10.3

	 	Costs
	 	 	14	 
	10.4

	 	Allocation of Payments
	 	 	15	 
	10.5

	 	Section Deleted
	 	 	15	 
	10.6

	 	Landlord’s Other Rights
	 	 	15	 
	 
	 	 	 	 	 	 
	ARTICLE XI

	 	ATTORNMENT AND SUBORDINATION	 	 	 	 
	11.1

	 	Estoppel Certificate
	 	 	15	 
	11.2

	 	Subordination
	 	 	15	 
	11.3

	 	Attornment
	 	 	15	 
	 
	 	 	 	 	 	 
	ARTICLE XII

	 	CONTROL OF BUILDING BY LANDLORD	 	 	 	 
	12.1

	 	Use and Maintenance of Common Areas
	 	 	15	 
	12.2

	 	Alterations by Landlord
	 	 	16	 
	12.3

	 	Tenant Relocation
	 	 	16	 
	 
	 	 	 	 	 	 
	ARTICLE XIII

	 	CONDEMNATION	 	 	 	 
	13.1

	 	Total Taking
	 	 	16	 
	13.2

	 	Partial Taking
	 	 	16	 
	13.3

	 	Award
	 	 	17	 
	 
	 	 	 	 	 	 
	ARTICLE XIV

	 	GENERAL PROVISIONS	 	 	 	 
	14.1

	 	Rules and Regulations
	 	 	17	 
	14.2

	 	Delay
	 	 	17	 
	14.3

	 	Holding Over
	 	 	17	 
	14.4

	 	Waiver
	 	 	18	 
	14.5

	 	Recording
	 	 	18	 
	14.6

	 	Notices
	 	 	18	 
	14.7

	 	Successors
	 	 	18	 
	14.8

	 	Joint and Several Liability
	 	 	18	 
	14.9

	 	Captions and Section Numbers
	 	 	18	 
	14.10

	 	Extended Meanings
	 	 	18	 

 

 

 

Exhibit 10.10

	 	 	 	 	 	 	 
	 	 	 	 	PAGE
	14.11

	 	Partial Invalidity
	 	 	19	 
	14.12

	 	Entire Agreement.
	 	 	19	 
	14.13

	 	Governing Law
	 	 	19	 
	14.14

	 	Time
	 	 	19	 
	14.15

	 	No Partnership
	 	 	19	 
	14.16

	 	Quiet Enjoyment
	 	 	19	 
	14.17

	 	Radon Gas
	 	 	19	 
	14.18

	 	Authority
	 	 	19	 
	14.19

	 	Lease Validity
	 	 	19	 
	14.20

	 	Brokerage
	 	 	19	 
	14.21

	 	Trial by Jury
	 	 	19	 
	 
	 	 	 	 	 	 
	SCHEDULES
	 	 	 	 	 	 
	A

	 	Site Plan of Premises
	 	 	21	 
	B

	 	Landlord’s and Tenant’s Work
	 	 	22	 
	C

	 	Rent Schedule
	 	 	23	 
	D

	 	Definitions
	 	 	24	 
	E

	 	Rules and Regulations
	 	 	28	 
	 
	 	 	 	 	 	 
	RIDERS
	 	 	 	 	 	 
	1

	 	Option to Renew
	 	 	30	 
	2

	 	Guaranty
	 	 	31	 

 

 

 

Exhibit 10.10

LEASE SUMMARY

The following is a summary of basic lease provisions with respect to the Lease described below. It
is an integral part of the Lease and terms defined or dollar amounts specified herein shall have
the meanings or amounts set forth herein unless other meanings are expressly set forth or expanded
upon in the text of this Lease or the Exhibits or Schedules attached hereto.

	 	 	 	 	 	 	 	 	 
	1.	 	Approximate Date of Lease Execution:	 	October 15. 2006
	 
	 	 	 	 	 	 	 	 
	2.	 	Landlord:	 	Transwestern Commercial Services, agent for the owner
	 	 	Landlord’s Address:	 	501 Brickell Key Drive, Suite 210 Miami, FL 33131
	 
	 	 	 	 	 	 	 	 
	3.	 	Tenant:	 	NationsHealth, Inc.
	 

	 	Principal:	 	 	 	 	 	 
	 	 	Business Entity:	 	NationsHealth, Inc.
	 	 	Tenant’s Address:	 	13650 NW 8th Street, Suite 109; Sunrise, Florida 33325

Phone: 954-903-5000

Fax: 954-903-5850 

Email: rtremain@uspgi.com
	 
	 	 	 	 	 	 	 	 
	4.	 	Guarantor:	 	N/A	 	Relationship to Client: N/A
	 

	 	Guarantors Address:
	 	N/A	 	 	 	 
	 	 	Phone: N/A     Fax: N/A     Email: N/A
	 
	 	 	 	 	 	 	 	 
	5.	 	Premises:	 	Suite 50 Orange Blossom Business Center
	 	 	Address:	 	4300 Okeechobee Road, Fort Pierce, FL 34947
	 	 	Gross Rentable Area of Premises:	 	Approximately 6,193 square feet
	 	 	Total square footage of premises:	 	Approximately 282,787 square feet
	 	 	Pro rata share occupied:	 	2.19%
	 	 	Permitted Use of Premises:	 	General office
	 
	 	 	 	 	 	 	 	 
	6.	 	Term of Lease:	 	3 Years and 0 Months
	 	 	Commencement Date:    October 15, 2006	 	Expiration Date:    October 14, 2009
	 	 	Expected Possession Date:	 	October 15, 2006 or receipt of certificate of occupancy
	 	 	Fixturing Period:	 	From October 15, 2006
	 
	 	 	 	 	 	 	 	 
	7.	 	Option to Renew (Rider 1, if applicable)
	 	 	Number of Options: 0	 	Term of each option: N/A	 	 
	 
	 	 	 	 	 	 	 	 
	8.	 	Parking: General
	 
	 	 	 	 	 	 	 	 
	9.	 	Signage: Tenant is responsible for the installation costs. All signs must be approved by the
Landlord prior to installation by providing a graphic to-scale, colors to be used and location to
be installed.
	 
	 	 	 	 	 	 	 	 
	10.	 	Other:
	 	 	Insurance Req’d: $1,000,000 per occurrence, liability only. Contract: Continental Casualty Exp. Date: 2/26/07
	 	 	HVAC Contract Req’d by:	 	Tenant Contract with: Sey Culhan	 	Exp. Date: 9/30/07
	 

	 	Assign/Sublet No
	 	Janitorial TBD
	 	Security TBD
	 	Pest Control TBD

 

 

 

Exhibit 10.10

	11.	 	Broker: Transwestern Commercial Services, whose commission will be paid by Landlord.

Transwestern Commercial Services agrees to compensate Stuart Kaminsky, US Realty
Advisors, Inc., in the amount of 4% of the base rental income for the initial term of the
Lease.

No other compensation will be made to the co-broker.

	12.	 	Special Provisions:

	 	a.	 	Tenant agrees to premises “as is, where is”, and Landlord makes no representations or
warranties of any kind for any of the internal equipment, filters, improvements, fixtures, etc.

	 
	 	b.	 	Landlord agrees to provide within thirty (30) days following Commencement Date:

	 	1)	 	All damaged or discolored ceiling tiles to be replaced;

	 
	 	2)	 	Existing carpet and tile flooring to be professional
cleaned;

	 
	 	3)	 	Interior walls to be repainted;

	 
	 	4)	 	The two existing door openings to be closed up;

	 
	 	5)	 	HVAC to be in good working order; and,

	 
	 	6)	 	to provide independent electrical and HVAC
system as well as to meter subject space
separately.

	 	c.	 	All tenant improvements not included in 12(b) above will be paid for by the Tenant

	 
	 	d.	 	As described in the lease, the Tenant is responsible for the following expenses:

	 	•	 	Electric consumed in the subject space will be paid by the Tenant

	 
	 	•	 	All trash and garbage removal created by the Tenant or resulting from deliveries to the
Tenant need to be put in the common refuse container

	 
	 	•	 	All water and sewer charges including the water used by the center at Tenant’s proportionate
share

	 
	 	•	 	Annual backflow re-certification, repair or replacement (if applicable)

	 
	 	•	 	All signs of any kind (subject to Landlord’s approval prior to installation)

	 
	 	•	 	All business insurance (liability as described in the lease)

	 
	 	•	 	All HVAC systems’ maintenance, repairs and replacements

	 
	 	•	 	All pass-through expenses (real estate taxes, insurance, and CAM) proportionately

	 	e.	 	Tenant is responsible for providing the following checked items to the Landlord before the
Landlord will execute a lease containing the terms and conditions outlined herein:

	 	 	 	ü   Insurance Certificate as described herein

	 
	 	 	 	ü   HVAC service agreement, no less than one complete service each year

	 
	 	 	 	ü   Pest control service agreement on a monthly basis

	 
	 	 	 	ü   El Grease trap and/or hood service agreement, quarterly or as required

	 	 	 	Possession of the Premises will not be granted to the Tenant until receipt of the above
checked items has been received by the Landlord.

	 
	 	f.	 	Tenant will have right of first refusal on 28,000 square feet of shell space.

	 	 	 	 	 	 	 	 	 	 	 
	13.

	 	Initial Minimum Rent:
	 	Square Feet:
	 	 	6,193	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Per Square Foot:
	 	$	11.50	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Annual:
	 	$	71,219.50	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Monthly:
	 	$	5,934.95	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 

 

 

 

	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	Exhibit 10.10
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	One month of free gross rent
	 	 	 	 	Increases at 3% per annum or CPI, whichever is greater.
	 	 	 	 	Rent Due Date: 1st    Late Fee %: 10
	 	 	 	 	Taxable/Exempt?: Taxable Commencing Sales Tax Rate %: 6.5, or applicable rate. Applicable sales tax to be paid by Tenant.
	 	 	 	 	Commencing CPI %: 3   CPI Date (Month/Year): TBD
	 	 	 	 	CAM pass thrus?: Yes CAM Rate%: 2.19 Any Non-Chargeable CAMs?: No

	14.	 	Schedule of Rents:

	 	 	 	 	 
	a.

	 	First Month’s Rent:
	 	$5,934.95 payable at lease execution
	 
	 	 	 	 
	b.

	 	Last Month’s Rent:
	 	$6,296.40 payable at lease execution
	 
	 	 	 	 
	c.

	 	Security Deposit (Section 2.6):
	 	$5,934.95 payable at lease execution
	 
	 	 	 	 
	d.

	 	Cost Pass-Through:
	 	All insurance, real estate taxes and operating costs (estimated at $2.75
per square foot for the first twelve (12) months of the Lease)

 

 

 

Exhibit 10.10

THIS LEASE, dated October 13, 2006, is made between ORANGE BLOSSOM INVESTMENTS, LLC, a Florida
limited liability company, (“Landlord”), and, NATIONSHEALTH, INC., (“Tenant”), a Delaware
corporation. Certain capitalized words used herein are defined in Schedule C.

ARTICLE I

TERM

1.1   Grant and Premises. Subject to the provisions of this Lease, Landlord leases the
Premises to Tenant for the Term. The Premises are identified on the site plan attached hereto as
Schedule A. The Gross Rentable Area of the Premises is approximately as shown on the Lease Summary.
If construction of the Premises is completed (as evidenced by a certificate of occupancy or
certificate of completion from appropriate governmental authority) as of the date of execution
hereof, the above stated approximation of area (and Minimum Rent as provided in Section 2.2) shall
be binding on the parties and not subject to re-computation. If such construction is not so
completed at such time, as soon as reasonably possible after such completion of construction, the
Architect, whose decision shall be final and binding on the parties, shall measure the Premises,
and the Gross Rentable Area of the Premises and Minimum Rent as set out in this Lease shall be
adjusted accordingly.

1.2   Term. The Term of the Lease is the period from the Commencement Date through the
Expiration Date. The Commencement Date is the opening of Tenant’s business in any part of the
Premises. The Expiration Date is the last day of the month in which the Commencement Date occurs,
in the Expiration Year. However, if the Commencement Date is the first day of a month, the Term
shall expire in the Expiration Year on the last day of the month previous to the month in which the
Commencement Date occurs.

1.3   Construction of Premises. If the Premises are being constructed, Landlord shall,
at its sole cost and expense, perform the work specified to be performed by Landlord in Schedule B
(the “Landlord’s Work”). Tenant shall, at its sole expense, perform all work necessary to complete
the Premises for its business purposes, including the work specified to be performed by Tenant in
Schedule B hereto (collectively, the “Tenant’s Work”). Tenant will also pay any additional charges,
if any, specified in Schedule B. If the Premises have been previously occupied, Tenant accepts the
Premises “as is” and agrees that all alterations and improvements shall be at its expense and done
in compliance with the provisions of the Lease.

ARTICLE II

RENT

2.1   Covenant to Pay. Tenant shall pay to Landlord Rent from the Commencement Date
without prior demand, together with all applicable Florida sales tax thereon; however, unless
otherwise provided in this Lease, Additional Rent shall be payable by Tenant to Landlord within
five days following demand. Minimum Rent and Additional Rent for any Lease Year greater or less
than twelve (12) months shall be pro-rated on a per diem basis, based upon a period of 365 days.
Tenant agrees that its covenant to pay Rent is an independent covenant and that all such amounts
are payable without counterclaim, set-off, deduction, abatement or reduction whatsoever, except as
expressly provided for in this Lease.

2.2   Minimum Rent and CPI Escalation. Subject to any escalation which may be provided
for in this Lease, Tenant shall pay Minimum Rent for the Term in the initial amount specified in
the Lease Summary, which shall be payable throughout the Term in equal monthly installments in
advance on the first day of each calendar month in the amounts (subject to escalation) specified in
the Lease Summary.

 

 

 

Exhibit 10.10

The Minimum Rent described above shall be adjusted at the beginning of the second and each
succeeding Lease Year during the Term by multiplying such Minimum Rent by a fraction, the numerator
of which shall be the Consumer Price Index — U.S. City Average for All Urban
Consumers, All Items, (1982-84 equals 100) (“CPI”) for the third month preceding the month of
adjustment, and the denominator of which shall be the CPI for the 15th month preceding the month of
adjustment. Should the CPI become unavailable, a reasonable substitute prepared by the U.S.
Department of Labor or other source, as designated by Landlord, shall be used. Minimum Rent shall
continue to be payable in monthly installments as otherwise described above until Landlord notifies
Tenant of the new monthly Minimum Rent installment amount. Landlord shall attempt to so nofify
Tenant prior to commencement of each new Lease Year. However, failure of Landlord to timely notify
Tenant of the new monthly Minimum Rent installment amount shall not be deemed a waiver by Landlord
of the increased rental; the new monthly amount (or
any portion not previously paid) shall be payable, retroactive to the commencement of the new Lease
Year, upon notification by Landlord to Tenant of the new monthly Minimum Rent installment amount.
At the beginning of the second and each succeeding Lease Year during the Term, the base rent will
be increased 3% per annum or CPI, whichever is greater.

2.3   Payment of Business Taxes. Tenant shall pay when due all Business Tax. If Tenant’s
Business Tax is payable by Landlord to the relevant taxing authority, Tenant shall pay the amount
thereof to Landlord or as Landlord directs. Tenant shall provide Landlord with a copy of the paid
intangible tax for personal property on or before December 31 of each year the Lease is in force.
Failure to do so will constitute a default of the Lease.

2.4   Payment of Operating Costs. Tenant shall pay to Landlord Tenant’s Proportionate
Share of Operating Costs. The amount of Operating Costs payable to Landlord may be estimated by
Landlord for such period as Landlord determines from time to time (not to exceed 24 months), and
Tenant agrees to pay to Landlord the amounts so estimated in equal installments, in advance, on the
first day of each month during such period. Notwithstanding the foregoing, when bills for all or
any portion of Operating Costs so estimated are actually received by Landlord, Landlord may bill
Tenant for Tenant’s Proportionate Share thereof, less any amount previously paid by Tenant to
Landlord on account of such item(s) by way of estimated Operating Costs payments.

Within a reasonable period of time after the end of the period for which estimated payments have
been made, Landlord shall submit to Tenant a statement from Landlord setting forth the actual
amounts payable by Tenant based on actual costs. If the amount Tenant has paid, based on estimates,
is less than the amount due based on actual costs, Tenant shall pay such deficiency within 10 days
after submission of such statement. If the amount paid by Tenant is greater than the amount
actually due, the excess may be retained by Landlord to be credited and applied by Landlord to the
next due installments of Tenant’s Proportionate Share of Operating Costs, or as to the final Lease
Year, provided Tenant is not in default, Landlord will refund such excess to Tenant.

Tenant’s Proportionate Share of actual Operating Costs for the final estimate period of the Term of
this Lease shall be due and payable even though it may not be finally calculated until after the
expiration of the Term. Accordingly, Landlord shall, as long as Tenant is not in default, return
Tenant’s security deposit thirty (30) days following expiration of the Term. Landlord shall, within
thirty (30) days following reconciliation of said Operating Expenses, issue a final statement of
any and all remaining balances due, if applicable, and Tenant hereby agrees to remit such balance,
if applicable, within fifteen (15) days of receipt.

2.5   Rent Past Due. If any installment of Rent shall remain overdue for more than 10
days, an additional late charge in an amount equal to 10% of the delinquent amount plus applicable
sales tax may be charged by Landlord, such charge to include the entire period for which the amount
is overdue and which shall be in addition to and not in lieu of any other remedy available to
Landlord.

 

 

 

Exhibit 10.10

2.6   Security Deposit. Landlord acknowledges receipt of a security deposit in the
amount specified on the Lease Summary to be held by Landlord, without any liability for interest
thereon, as security for the performance by Tenant of all its obligations under this Lease. In the
event of default by Tenant of any of its obligations under this Lease, Landlord may at its option,
but without prejudice to any other rights which Landlord may have, apply all or part of the
security deposit to compensate Landlord for any loss, damage or expense sustained by Landlord as a
result of such default. If all or any part of the security deposit is so applied, Tenant shall
restore the security deposit to its original amount on demand of Landlord. Within 30 days following
termination of this Lease, if Tenant is not then in default, the security deposit will be returned
by Landlord to Tenant. If Landlord sells its interest in the Premises, it may deliver the security
deposit to the purchaser and Landlord will thereupon be released from any further liability with
respect to the security deposit or its return to Tenant and the purchaser shall become directly
responsible to Tenant.

2.7   Net Lease. This Lease is a completely net lease to Landlord, and except as
otherwise expressly herein stated, Landlord is not responsible for any expenses or outlays of any
nature arising from or relating to the Premises, the use or occupancy thereof, the contents thereof
or the business carried on therein. Tenant shall pay all charges, impositions and outlays of every
nature and kind relating to the Premises except as expressly herein stated.

2.8   Payment of Rent. Rent shall be paid as follows to:

Property Manager

#412

6278 N Federal Highway

Fort Lauderdale, FL 33308

Landlord will provide payment coupons for each twelve-month period from the commencement date.
Failure to use coupons by the Tenant will cost the Tenant $25.00 per occurrence. Loss of the coupon
book by the Tenant will require Landlord to order a new coupon book at a cost of $25.00. These
items are deductible from the Security Deposit if not paid at the expiration of the lease.

ARTICLE III

USE OF PREMISES

3.1   Permitted Use and Business Name. The Premises shall be used and occupied as
NationsHealth, Inc. and other wholly-owned subsidiaries and/or entities doing business as under
said entity. The business of Tenant in the Premises shall be carried on under the name and style
provided herein and under no other name and style unless approved by Landlord in writing.

3.2   Hours of Business. During the term, Tenant may conduct its business in the
Premises on Monday through Sunday from 8 am. to 7 p.m., but these times must comply with the local
authorities rules and regulations.

3.3   Opening and Continuous Occupancy. Tenant shall continuously, actively and
diligently carry on the business specified in Section 31 on the whole of the Premises during the
Term, during such hours and upon such days as are herein required, except when prevented from doing
so by force majeure, Tenant acknowledges that its continued occupancy of the Premises and the
regular conduct of its business therein are of utmost importance to neighboring tenants and to
Landlord in the renting of space in the Building. Tenant acknowledges that Landlord is executing
this Lease in reliance thereon and that the same is a material element inducing Landlord to execute
this Lease.

 

 

 

Exhibit 10.10

3.4   Tenant’s Covenants as to Use and Occupancy.

a.    Tenant shall carry on its business on the Premises in a reputable manner and shall not do,
omit, permit or suffer to be done or exist upon the Premises anything which might tend to lower the
first-class character of the Building or which could result in a nuisance, hazard or breach of any
provision of this Lease or any applicable municipal or other governmental law or regulation. If
Tenant is notified of any breach or violation of such governmental laws or regulations, it shall
promptly notify Landlord.

b.    Tenant shall not use in the Premises any traveling or flashing lights or signs or any
loudspeakers, television, phonographs, radio or other audio-visual or mechanical devices in a
manner so that they can be heard or seen outside the Premises without in each case prior written
consent of Landlord. If Tenant uses any such equipment without receiving the prior written consent
of Landlord, Landlord shall be entitled to remove such equipment without notice at any time and at
the cost of Tenant payable as Additional Rent forthwith on demand.

c.    Tenant shall not burn any trash or garbage in or about the Premises or anywhere else in
the Building, nor cause, permit or suffer upon the Premises or anywhere else in the Building any
unusual or objectionable noises or odors or anything which may disturb the enjoyment of the
Building and all the Common Areas and facilities thereof by customers and other tenants of the
Building.

d.    Tenant shall not keep or display any merchandise on or otherwise obstruct the Common Areas
and shall not sell, advertise, conduct or solicit business anywhere within the Building other than
in the Premises.

e.    Tenant shall not overload any floor in the Premises, or any utility or service, or commit
any act of waste or damage any part of the Premises.

f.    Tenant shall ship and receive supplies, fixtures, equipment, furnishings, wares and
merchandise only through the appropriate service and delivery facilities provided by Landlord;
shall cause its employees to park in parts of the parking areas designated by Landlord for such
purpose; and shall not park its trucks or other delivery vehicles or allow suppliers or others
making deliveries to or receiving shipments from the Premises to park in the parking areas, except
in those parts thereof as may from time to time be allocated by Landlord for such purpose.

g.    No aspect of Tenant’s business operation shall feature the display of any nude body parts
or pornographic material.

h.    Tenant shall not install in, on, or over its storefront any lights, shades, awnings or
similar items without the prior written consent of Landlord.

3.5   Display Windows. Tenant shall keep display windows neatly dressed. Display
windows and lighted signs (if any) shall be kept illuminated by Tenant on all business days until
at least one-ha[f hour after the Building closes for business.

3.6   Compliance with Laws. The Premises shall be used and occupied in a safe, careful
and proper manner so as not to contravene any present or future governmental or quasi-governmental
laws, regulations or orders, or the requirements of Landlord’s or Tenants insurers. If due to
Tenant’s use of the Premises, repairs, improvements or alterations are necessary to comply with
any of the foregoing, Tenant shall pay the entire cost thereof.

3.7   Advertising, Trade Names and Restricted Marks. In its advertising, Tenant may use
the name of the Building and such trade names, symbols and slogans as may be designated by
Landlord, but Tenant shall not indulge in any advertising or sales promotion which might reflect
unfavorably on the Building. The name for the Building which Landlord may from time to time adopt
and every name or mark adopted by Landlord in connection with the Building shall be used by Tenant
only in association with sales made at or from the business carried on in the Premises during the
Term and Tenant’s use thereof shall be subject to such regulations as Landlord may from time to
time impose. Tenant shall not acquire any rights in any such restricted name or mark, and upon the
termination of this Lease all its interest herein
shall be deemed to have been surrendered to Landlord and Tenant shall thereafter cease and
abandon all use thereof. If Landlord so requests, Tenant shall execute registered user
applications to protect Landlord’s trademark rights.

 

 

 

Exhibit 10.10

3.8   Signs. The design and specification of all signs shall be prepared by Tenant in
accordance with Landlord’s sign and storefront rules as adopted from time to time and shall be
submitted for Landlord’s prior approval. Except with the prior written consent of Landlord at
Landlord’s sole discretion, Tenant shall not erect, install, display, inscribe, paint or affix any
other signs, lettering or advertising medium upon or above any exterior portion of the Premises
including the storefront and all interior as well as exterior glass surfaces thereof.

3.9   Prohibited Uses. Notwithstanding any other provisions of this Lease, Tenant shall
not use the Premises nor permit them to be used for any of the following purposes: (A) for the
sale by Tenant, as its principal business purpose, of any merchandise which Tenant, in the course
of its normal business practice, purchases at manufacturers’ clearances or purchases of
ends-of-runs, bankruptcy stock, seconds or other similar merchandise; (B) for the sale of
second-hand goods, war surplus articles, insurance salvage stock, fire sale stock, merchandise
damaged by or held out to be damaged by fire, except merchandise damaged by fire or smoke
occurring in the Building, and then only for 30 days after the date of any such damage; (C) as an
auction or flea market; (D) for a bankruptcy sale or going-out-of-business sale or liquidation
sale or any similar sale, unless Tenant is in fact in bankruptcy or is going out of business or is
in liquidation, in which case such sale shall not continue beyond 30 days; or, (E) any business in
which Tenant is engaged in intentionally deceptive or fraudulent advertising or selling practices
or any other act or business practice contrary to honest retail practices.

3.10   Indemnity for Toxic Waste. Tenant (and any Guarantor) hereby agree to indemnify,
defend and hold Landlord, any Mortgagee, and their successors and assigns harmless from and
against any cost, claim, damage, expense and liability of any kind whatsoever, including but not
limited to attorneys’ fees and costs at all tribunal levels, arising out of any act or omission of
Tenant, its agents or any other person on the Premises under color of authority of Tenant, giving
rise to any toxic waste, chemical pollution, or similar environmental hazard regardless of whether
any such act or omission is, at the time of occurrence, a violation of any law or regulation. The
foregoing indemnity shall survive the termination or expiration of this Lease, anything else
herein to the contrary notwithstanding.

ARTICLE IV

ACCESS AND ENTRY

4.1   Right of Examination. Landlord and its agents shall be entitled, with reasonable
notice, to enter the Premises to examine them; to make such repairs, alterations or improvements
thereto as Landlord considers necessary or desirable; to have access to underfloor facilities and
access panels to mechanical shafts and to check, calibrate, adjust and balance controls and other
parts of the heating, air conditioning, ventilating and climate control systems. Landlord reserves
to itself the right to install, maintain, use and repair pipes, ducts, conduits, vents, wires and
other installations leading in, through, over, or under the Premises and for this purpose,
Landlord may take all material into and upon the Premises which is required therefor. Tenant shall
not unduly obstruct any pipes, conduits or mechanical or other electrical equipment so as to
prevent reasonable access thereto. Landlord reserves the right to use all exterior walls and roof
area. Landlord shall exercise its rights under this Section, to the extent possible in the
circumstances, in such manner so as to minimize interference with Tenant’s use and enjoyment of
the Premises. If any excavation is made on the Land, the person making such excavation may enter
the Premises or the Building to support them by proper foundations. Rent will not abate or be
reduced while the repairs, alterations, or improvements are being made.

4.2   Right to Show Premises. Landlord and its agents have the right to enter the
Premises, with reasonable notice, to show them to prospective purchasers or Mortgagees and,
during the last six months of the Term (or the last six months of any renewal term if this
Lease is renewed), to show them to prospective tenants.

 

 

 

Exhibit 10.10

4.3   Entry not Forfeiture. No entry into the Premises by Landlord pursuant to a right
granted by this Lease shall constitute a breach of any covenant for quiet enjoyment, or (except
where expressed by Landlord in writing) shall constitute a retaking of possession by Landlord or
forfeiture of Tenant’s rights hereunder.

ARTICLE V

MAINTENANCE, REPAIRS AND ALTERATIONS

5.1   Maintenance and Repairs by Landlord.

(A)    Landlord covenants to keep the following in good repair as a prudent owner: (i) the
structure of the Building including exterior walls and roofs; (ii) the mechanical, electrical, and
other base building systems of the Building pertaining to the Common Areas; and (Hi) the
entrances, sidewalks, corridors, parking areas and other facilities from time to time comprising
the Common Areas. The cost of such maintenance and repairs (other than repair of inherent
structural defects) shall be included in Operating Costs.

(B)    So long as Landlord is acting in good faith, Landlord shall not be responsible for any
damages caused to Tenant by reason of failure of any equipment or facilities serving the Building
or delays in the performance of any work for which Landlord is responsible pursuant to this Lease.

5.2 Maintenance and Repairs by Tenant. Tenant shall, at its sole cost, keep all
non-structural elements including, without limitation, the store front, signs, windows, plate
glass, doors and the interior of the Premises, together with all electrical, plumbing, and other
mechanical installations therein in good order and repair and will make all replacements thereto
at its expense. All glass, both interior and exterior is at the sole risk of Tenant and Tenant
agrees to repair at Tenant’s own expense, any glass broken during the term. All repairs and
replacements shall be made to a standard consistent with a first class Building shall be performed
by contractors or workmen designated or approved by Landlord. At the expiration or earlier
termination of the Term, Tenant shall surrender the Premises to Landlord in as good condition and
repair as Tenant is required to maintain the Premises throughout the Term. Landlord shall have the
right to charge Tenant’s security deposit for any repairs required to be made by Landlord to bring
the Premises up to such condition. Tenant shall be responsible for all damages and repairs to the
Premises caused by burglary, vandalism and/or lack of maintenance.

Tenant shall arrange for the maintenance of all heating and air conditioning equipment with a
recognized heating and air conditioning contractor who will carry out such maintenance on a
scheduled basis. Tenant will furnish the name of the contractor and a copy of the maintenance
program to Landlord annually for Landlord’s approval. Said maintenance contract to provide for no
less than service every six (6) months. Tenant will provide a maintenance contract for Landlord’s
review upon execution of the lease.

5.3   Approval of Tenant’s Alterations. No Alterations shall be made to the Premises
without Landlord’s written approval. Tenant shall submit to Landlord details of the proposed work
including drawings and specifications prepared by qualified architects or engineers conforming to
good engineering practice. All such Alterations shall be performed: (i) at the sole cost of
Tenant; (ii) by contractors and workmen approved in writing by Landlord; (iii) in a good and
workmanlike manner; (iv) in accordance with drawings and specifications approved in writing by
Landlord; (v) in accordance with all applicable laws and regulations; (vi) subject to the
reasonable regulations, supervision, control and inspection of Landlord; and (vu) subject to such
indemnification against liens and expenses as Landlord reasonably requires. Tenant shall reimburse
Landlord for all professional fees and costs incurred by Landlord in connection with its consent
to Alterations requested by Tenant. If any Alterations would affect the structure of
the Building or any of the electrical, plumbing, mechanical, heating, ventilating or air
conditioning systems or other base building systems, such work shall, at the option of Landlord,
be performed by Landlord at Tenant’s cost. The cost of the work performed by Landlord plus a sum
equal to 20% of said cost representing Landlord’s overhead shall be paid by Tenant to Landlord
upon demand.

 

 

 

Exhibit 10.10

5.4   Repair Where Tenant at Fault. Notwithstanding any other provisions of this Lease,
if any part of the Building is damaged or destroyed or requires repair, replacement or alteration
as a result of the act or omission of Tenant, its employees, agents, invitees, licensees, or
contractors, Landlord shall have the right to perform same and the cost of such repairs,
replacement or alterations plus a sum equal to 20% of such cost, representing Landlord’s overhead,
shall be paid by Tenant to Landlord upon demand.

5.5   Removal of Improvements and Fixtures. All Leasehold Improvements (other than
Trade Fixtures) shall immediately upon their placement in the Premises become Landlord’s property
without compensation to Tenant. Except as otherwise agreed by Landlord in writing, no Leasehold
Improvements shall be removed from the Premises by Tenant either during or at the expiration or
sooner termination of the Term except that: (a) Tenant may, during the Term, in the usual course
of its business, remove its Trade Fixtures, provided that Tenant is not in default under this
Lease; and (b) Tenant shall, at the expiration or earlier termination of the Term, at its sole
cost, remove such of the Leasehold Improvements and Trade Fixtures in the Premises as Landlord
shall require to be removed and restore the Premises to a good condition, reasonable wear and tear
excepted. Tenant shall at its own expense repair any damage caused to the Building by such
removal. If Tenant does not remove its Trade Fixtures at the expiration or earlier termination of
the Term, the Trade Fixtures shall, at the option of Landlord, become the property of Landlord and
may be removed from the Premises and sold or disposed of by Landlord in such manner as it deems
advisable without any accounting to Tenant. Tenant shall also return to Landlord a workable set of
keys to the Premises at the expiration of the Term.

5.6   Liens. The right, title and interest of Landlord in all or any portion of the
Premises, Land or Building shall not be subject to any liens arising directly or indirectly out of
any improvements, alterations or changes made to the Premises, Land or Building by or on the
behalf of Tenant, its officers, employees, servants or agents. Tenant shall promptly pay for all
materials supplied and work done with respect to the Premises. Tenant covenants and agrees that it
shall not incur any indebtedness giving a right to a lien of any kind or character upon the right,
title or interest of Landlord in and to all or any portion of the Premises, Land or Building.
Pursuant to Section 713.10, Florida Statutes, as amended from time to time, the parties will, at
the option of Landlord, execute, acknowledge, deliver and record a Short Form of Lease in the form
attached hereto and made a part hereof. If any lien resulting from work contracted for by Tenant
shall be filed against all or any part of the Premises, Land or Building, then Tenant shall cause
the same to be discharged or transferred to bond in a manner as provided by law within 10 days
after the filing of the lien by the lienor upon the public records. Failure to do so shall
constitute a default hereunder and Landlord shall have the right to remove such lien by bonding or
payment and the cost thereof shall be paid immediately from Tenant to Landlord. Tenant has no
right or authority to create any mechanics’ or materialmen’s lien on the Land, Building or
Landlord’s right, title or interest therein and Tenant shall so notify all suppliers of labor or
materials, in writing, and obtain written acknowledgment thereof, prior to ordering such labor or
materials. Tenant agrees to indemnify and save harmless Landlord from any and all liabilities,
expenses, costs, expenditures or otherwise, including attorneys’ fees at all judicial levels, for
breach of this provision.

5.7   Notice by Tenant. Tenant shall notify Landlord of any accident, defect, damage or
deficiency in any part of the Premises or the Building, which comes to the attention of Tenant,
its employees or contractors notwithstanding that Landlord may have no obligation in respect
thereof.

 

 

 

Exhibit 10.10

ARTICLE VI

UTILITIES/H VAC

6.1   Utilities. If utilities are separately metered, Tenant shall pay directly to the
provider of such utility services all meter installation costs, deposits, impact fees and other
charges for use or consumption for electricity and power services, telephone service and all other
utilities used by Tenant in and around the Premises. Utility charges for services to the Common
Areas and utility services not separately metered shall be computed proportionately and included
within Operating Expenses.

6.2   Heating, Ventilating and Air Conditioning (HVAC). The heating, ventilating, air
conditioning equipment and refrigeration system (if any) for the Premises shall be maintained,
repaired and replaced, if necessary, by Tenant at its sole cost and expense.

ARTICLE VII

INSURANCE AND INDEMNITY

7.1   Tenant’s Insurance. Tenant shall, throughout the Term (and any other period when
Tenant is in possession of the Premises), maintain at its sole cost the following insurance. The
Tenant must provide the Landlord with a Certificate of Insurance at the execution of the lease as
a condition precedent to possession of the space and must continue providing a new certificate of
Insurance each year.

a.    All risks (including flood and earthquake) property insurance, naming Tenant as an insured
party and naming Landlord as additional named insured, containing a waiver of subrogation rights
which Tenant’s insurers may have against Landlord and against those for whom Landlord is in law
responsible, including, without limitation, its directors, officers, agents and employees, and
(except with respect to Tenant’s chattels) incorporating a standard New York mortgagee endorsement
(without contribution). Such insurance shall insure (i) property of every kind owned by Tenant or
for which Tenant is legally liable located on or in the Building, including, without limitation,
Leasehold Improvements, in an amount not less than the full replacement cost thereof (new), with
such cost to be adjusted no less than annually subject to an agreed amount coinsurance clause; and
(U) twelve months direct or indirect loss of earnings including prevention of access to the
Premises or to the Building. Such policy or policies, except with respect to Tenant’s chattels and
loss of earnings insurance, shall provide that loss thereon shall be adjusted and payable to
Landlord, with the proceeds to be held in trust to be used for repair and replacement of the
property so insured.

b.    Comprehensive machinery insurance on a blanket repair and replacement basis with limits
for each accident in an amount of at least the replacement cost of all Leasehold Improvements and
all boilers, pressure vessels, air conditioning equipment and miscellaneous electrical apparatus
owned or operated by Tenant or by others (except for Landlord) on behalf of Tenant in the
Premises, or relating to, or serving the Premises and twelve months direct or indirect loss of
earnings including prevention of access to the Premises or to the Building. Such insurance shall
(except with respect to Tenant’s chattels) incorporate a standard New York mortgagee endorsement
(without contribution) for the benefit of the Mortgagee and contain a waiver of subrogation rights
which Tenant’s insurers may have against Landlord and against those for whom Landlord is in law
responsible including, without limitation, its directors, officers, agents and employees.

c.    Commercial General Liability insurance. Such policy shall (i) contain inclusive limits of
not less than $1,000,000 per occurrence, (ii) provide for cross liability, (Hi) cover Tenant’s
contractual liability under the indemnity provided in this Lease, (iv) include Landlord and
Mortgagee named as additional insureds, and (v) in the event such policy contains a general
aggregate, be endorsed to provide that the general aggregate applies separately per location.

 

 

 

Exhibit 10.10

d.    Worker’s compensation and employer’s liability insurance in compliance with applicable
legal requirements.

e.    Plate glass coverage

f.    Any other form of insurance which Tenant or Landlord, acting reasonably, or the Mortgagee
requires from time to time in form, in amounts and for risks and such higher limits against which
a prudent tenant would insure.

All policies referred to above shall: (i) be taken out with insurers licensed to do business
in Florida and reasonably acceptable to Landlord; (ii) be in a form reasonably satisfactory to
Landlord; (Ni) be non-contributing with, and shall apply only as primary and not as excess to any
other insurance available to Landlord or the Mortgagee; and (iv) contain an undertaking by the
insurers to notify Landlord by certified mail not less than 30 days prior to any material change
(which includes, without limitation, any change that reduces or restricts coverage), cancellation
or termination. Certificates of insurance on Landlord’s standard form or, if required by the
Mortgagee, copies of such insurance policies certified by an authorized officer of Tenant’s
insurer as being complete and current, shall be delivered to Landlord promptly upon request.
Tenant shall be required to pay all premiums for all policies as they become due and Tenant shall
promptly deliver a certificate of payment to Landlord within 10 days prior to the expiration of
any policy. If (a) Tenant fails to take out or to keep in force any insurance referred to in this
Section 7.1, or should any such insurance not be approved by either Landlord or the Mortgagee, and
(b) Tenant does not commence and continue to diligently cure such default within 48 hours after
written notice by Landlord to Tenant specifying the nature of such default, then Landlord has the
right, without assuming any obligation in connection therewith, to effect such insurance at the
sole cost of Tenant and all outlays by Landlord shall be treated as additional rent and shall be
paid by Tenant to Landlord without prejudice to any other rights or remedies of Landlord under
this Lease.

7.2   Increase in Insurance Premiums. Tenant shall not keep or use in the Premises any
article of a combustible, toxic or dangerous nature or any article which may be prohibited by any
fire or casualty insurance policy in force from time to time covering the Premises or the
Building. Tenant will comply promptly with the requirements of any insurer pertaining to the
Premises or the Building. If (a) the conduct of business in the Premises or (b) any acts or
omissions of Tenant in the Building or any part thereof, cause or result in any increase in
premiums for the insurance carried from time to time by Landlord with respect to the Building, if
Landlord allows such act or omission to continue, Tenant shall pay any such increase in premium.
In determining whether increased premiums are caused by or result from the use or occupancy of the
Premises, a schedule issued by the organization computing the insurance rate on the Building
showing the various components of such rate, shall be conclusive evidence of the several items and
charges which make up such rate.

7.3   Cancellation of Insurance. If any insurance policy upon the Building or any part
thereof shall be canceled or shall be threatened by the insurer to be canceled or the coverage
thereunder reduced in any way by the insurer by reason of the use of the Premises by Tenant or any
assignee or subtenant of Tenant, or by anyone permitted by Tenant to be upon the Premises, and if
Tenant fails to remedy such condition with 48 hours after notice thereof by Landlord, Tenant shall
be deemed to have committed a material default of this Lease, in which event in addition to any
other remedies available to Landlord, Landlord may enter upon the Premises and remedy the
condition giving rise to such cancellation, threatened cancellation or reduction, including
removal of any offending article, and Tenant shall pay the cost of such remedy to Landlord and
Landlord shall not be liable for any damage or injury caused to any property of Tenant or of
others located on the Premises as a result of any such entry.

7.4   Loss or Damage. Landlord shall not be liable, unless due to landlord’s act,
omission or negligence, for any death or injury arising from or out of any occurrence in, upon, at
or relating to the Building or damage to property of Tenant or of others located on the Premises
or elsewhere in the Building, nor shall it be responsible for any loss of or damage to any
property of Tenant or others from any cause, unless due to Landlord’s act, omission or negligence.

 

 

 

Exhibit 10.10

Without limiting the generality of the foregoing, landlord shall not, unless due to
landlord’s act, omission or negligence, be liable for any injury or damage to Persons or property
resulting from fire, explosion, falling plaster, falling ceiling tile, falling fixtures, steam,
gas, electricity, water, rain, flood, or leaks from any part of the Premises or from the pipes,
sprinklers, appliances, plumbing works, roof, windows or subsurface of any floor or ceiling of the
Building or from the street or any other place or by dampness or by any other cause whatsoever.
Landlord shall not be liable, unless due to landlord’s act, omission or negligence, for any such
damage caused by other tenants or persons in the Building or by occupants of adjacent property
thereto, or the public, or caused by construction or by any private, public or quasi-public work.
All property of Tenant kept or stored on the Premises shall be so kept or stored at the risk of
Tenant only, and Tenant releases and agrees to indemnify Landlord and save it harmless from any
claims or liability arising out of any damage to the same including, without limitation, any
subrogation claims by Tenant’s insurers. Tenant covenants with Landlord that Tenant shall not
bring or abet any claim or action based on any item for which Tenant has above agreed Landlord
shall not be responsible or liable.

7.5   Indemnification of Landlord. Notwithstanding any other provision of this Lease,
Tenant agrees to indemnify Landlord and hold it harmless from and against any and all loss
(including loss of Minimum Rent and Additional Rent payable in respect to the Premises) claims,
actions, damages, liability and expense of any kind whatsoever (including attorneys’ fees and
costs at all tribunal levels), whether or not caused in whole or in part by the negligence of
landlord or its agents, arising from any occurrence in, upon or at the Premises, or the occupancy,
use or improvement by Tenant or its agents or invitees of the Premises, any parking facilities, or
any part thereof, or occasioned wholly or in part by any act or omission of Tenant its agents,
employees and invitees or by anyone permitted to be on the Premises or common areas by Tenant.
Landlord may, at its option and at Tenant’s expense as part of the foregoing indemnity,
participate in or assume carriage of all or any part of any litigation or settlement discussions
relating to the foregoing or any other matter for which Tenant is required to indemnify Landlord
hereunder.

ARTICLE VIII

DAMAGE AND DESTRUCTION

8.1   Rent Abatement. If the Premises or the Building are damaged or destroyed in whole
or part by fire or any other occurrence, this Lease shall continue in full force and effect and
there shall be no abatement of Rent except as specifically provided in this Article VIII.

8.2   Damage to Premises. If the Premises are at any time destroyed or damaged as a
result of fire or any other casualty insured against by Landlord, then the following provisions
shall apply:

a.    If the Premises are rendered untenantable only in part Landlord shall diligently repair
the Premises, to the extent only of its obligations under Section 5.1, excluding those provisions
provided therein as they pertain to operating expenses, and Minimum Rent shall abate
proportionately to the portion of the Premises rendered untenantable from the date of destruction
or damage until Landlord’s repairs have been substantially completed.

b.    If the Premises are rendered wholly untenantable, Landlord shall diligently repair the
Premises to the extent only of its obligations pursuant to Section 5.1, excluding those provisions
provided therein as they pertain to operating expenses, Minimum Rent shall abate entirely from the
date of destruction or damage to such date which is the earlier of i) the date tenantable, or H)
30 days after Landlord’s repairs have been substantially completed.

c.    If the Premises are not rendered untenantable in whole or in part, Landlord shall
diligently perform such repairs to the Premises to the extent only of its obligations under
Section 5.1, but in such circumstances Minimum Rent shall not terminate or abate.

 

 

 

Exhibit 10.10

d.    Upon being notified by Landlord that Landlord’s repairs have been substantially completed,
Tenant shall diligently perform all repairs to the Premises which are Tenant’s
responsibility under Section 5.2, and all other work required to fully restore the Premises
for use in Tenant’s business, in every case at Tenant’s cost and without any contribution to such
cost by Landlord, whether or not Landlord has at any time made any contribution to the cost of
supply, installation or construction of Leasehold Improvements in the Premises.

e.    Nothing in this Section requires Landlord to rebuild the Premises in the condition which
existed before any such damage or destruction so long as the Premises as rebuilt will have
reasonably similar facilities to those in the Premises prior to such damage or destruction, having
regard, however, to the age of the Building at such time.

8.3   Termination for Damage to Premises. Notwithstanding Section 8.2, if the damage or
destruction which has occurred to the Premises is such that in the reasonable opinion of Landlord
the Premises cannot be rebuilt or made fit for the purposes of Tenant within 120 days of the
happening of the damage or destruction, Landlord may, at its option, terminate this Lease on
notice to Tenant given within 30 days after such damage or destruction and Tenant shall, within a
commercially reasonable time, deliver vacant possession of the Premises in accordance with the
terms of this Lease.

8.4   Destruction of Building. Notwithstanding any other provision of this Lease, it
(i) 20% or more of the Gross Rentable Area of the retail component of the Building is destroyed or
damaged by any cause, or (U) portions of the Building which affect access or services essential
thereto are damaged or destroyed and, in the reasonable opinion of Landlord, cannot reasonably be
repaired within 180 days after the occurrence of the damage or destruction, then Landlord may, by
notice to Tenant given within 30 days of such damage or destruction, terminate this Lease, in
which event neither Landlord nor Tenant shall be bound to repair and Tenant shall surrender the
Premises to Landlord within 30 days after delivery of its notice of termination and Rent shall be
apportioned and paid to the date on which Tenant delivers vacant possession of the Premises,
subject to any abatement to which Tenant may be entitled pursuant to Section 8.2. If Landlord is
entitled to, but does not elect to terminate this Lease, Landlord shall, following such damage or
destruction, diligently repair that part of the Building damaged or destroyed, but only to the
extent of Landlord’s obligations pursuant to the terms of this Lease (as to Common Areas) and the
various leases for other rentable space in the Building (as to such other damaged rentable space),
excluding any tenant’s responsibilities with respect to such repair. If Landlord elects to repair
the Building, Landlord may do so in accordance with plans and specifications other than those used
in the original construction of the Building.

8.5   Architects Certificate. The certificate of the Architect, if applicable, shall
bind the parties as to: (a) the percentage of the Gross Rentable Area of the retail component of
the Building damaged or destroyed; (b) whether or not the Premises are rendered partially or
wholly untenantable and the percentage of the Gross Rentable Area of the Premises rendered
untenantable; (c) the date upon which either Landlord’s or Tenant’s work of reconstruction or
repair is substantially completed, (d) the date when the Premises are rendered tenantable.

ARTICLE IX

ASSIGNMENT, SUBLETING AND TRANSFERS

9.1   Assignments, Subleases and Transfers. Tenant shall not enter into, consent to or
permit any Transfer without the prior written consent of Landlord in each instance, which consent
shall not be unreasonably withheld but shall be subject to Landlord’s rights under Sections 9.2
and 9.3. It shall not be considered unreasonable for Landlord to take into account the following
factors (and other reasonable factors) in deciding whether to grant or withhold its consent: (a)
Whether such Transfer (or the potential consequences thereof) might result in violation or breach
of any covenants or restrictions made or granted by Landlord to other tenants or occupants or
prospective tenants or occupants of the Building. (b) Whether, in Landlord’s opinion, the
financial background, business history and capability of the proposed Transferee is satisfactory.
In this regard, it is agreed that the Transferee must be an experienced and successful
owner/operator of a business of the same type and quality and

 

 

 

Exhibit 10.10

respecting the same type of merchandise which is required to be operated in the Premises
pursuant to this Lease; has agreed to operate its business in the Premises under a name which is
as well known as and of equal or better reputation than the name under which Tenant is required to
conduct its business in the Premises; and has demonstrated to Landlord’s satisfaction that it is
likely to attract as large a number of members of the public to the Building as Tenant. (c)
Whether the Transfer is to an existing tenant of Landlord. (d) Whether the conduct of business in
the Premises by the Transferee would adversely affect the tenant-mix or merchandising balance
within the Building. Consent by Landlord to any Transfer, if granted, shall not constitute a
waiver of the necessity for such consent to any subsequent Transfer. This prohibition against
Transfer shall include a prohibition against any Transfer by operation of law and no Transfer
shall take place by reason of the failure of Landlord to give notice to Tenant within 30 days as
required by Section 9.2.

9.2   Landlord’s Right to Terminate. If Tenant intends to effect a Transfer, Tenant
shall give prior notice to Landlord of such intent specifying the identity of the Transferee and
providing such financial, business or other information relating to the Transfer, the proposed
Transferee and its principals as Landlord or any Mortgagee requires, together with copies of
sufficient documents to evidence the particulars of the proposed Transfer, including the total
consideration to be paid by the Transferee. Landlord shall, within 30 days after having received
such notice and all requested information, notify Tenant either that: (a) it consents or does not
consent to the Transfer in accordance with the provisions and qualifications of this Article IX,
or (b) it elects to cancel this Lease as to the whole or part, as the case may be, of the Premises
affected by the proposed Transfer, in preference to giving such consent. If Landlord fails to
timely give any notice, Landlord shall be deemed to have refused consent to the Transfer. If
Landlord elects to cancel this Lease, it shall stipulate in its notice the termination date of
this Lease, which date shall be no less than 30 days nor more than 90 days following the giving of
such notice of termination, in which case Tenant shall notify Landlord within 10 days thereafter
of Tenant’s intention either to refrain from such Transfer or to accept the cancellation of this
Lease or the portion thereof in respect of which Landlord has exercised its rights. If Tenant
fails to timely deliver such notice or notifies Landlord that it accepts Landlord’s termination,
this Lease will as to the whole or affected part of the Premises, as the case may be, be
terminated on the date of termination stipulated by Landlord in its notice of termination. If
Tenant timely advises Landlord it intends to refrain from such Transfer, then Landlord’s election
to terminate this Lease shall become void.

9.3   Conditions of Transfer.

a.    Any consent by Landlord shall be subject to Tenant and Transferee executing an agreement
with Landlord agreeing that the Transferee will be bound by all of the terms of this Lease as if
such Transferee had originally executed this Lease as tenant. Notwithstanding any Transfer
permitted or consented to by Landlord, or acceptance of Rent from the Transferee, Tenant shall be
jointly and severally liable with the Transferee under this Lease and shall not be released from
performing any of the terms of this Lease.

b.    Landlord’s consent to any Transfer shall be subject to the further condition that if the
Minimum Rent and Additional Rent pursuant to such Transfer exceeds the Minimum Rent and Additional
Rent and payable under this Lease, the amount of such excess shall be paid to Landlord. If,
pursuant to a permitted Transfer, Tenant receives from the Transferee, either directly or
indirectly, any consideration other than Minimum Rent or Additional Rent and for such Transfer,
either in the form of cash, goods or services Tenant shall, upon receipt thereof, pay to Landlord
an amount equivalent to such consideration. Tenant and the Transferee shall execute any agreement
required by Landlord to effect the foregoing provisions.

c.    Notwithstanding the effective date of any permitted Transfer as between Tenant and the
Transferee, all Minimum Rent and Additional Rent for the month in which such effective date occurs
shall be paid by Tenant so that Landlord will not be required to accept partial payments of
Minimum Rent and Additional Rent for such month from either Tenant or Transferee.

 

 

 

Exhibit 10.10

d.    Any document evidencing any Transfer permitted by Landlord, or setting out any terms
applicable to such Transfer or the rights and obligations of Tenant or Transferee thereunder,
shall be prepared by Landlord or its attorneys and all legal costs with respect thereto shall be
paid by Tenant.

9.4   Change of Control. If Tenant is at any time a corporation, partnership or other
entity, any actual or proposed Change of Control in such corporation, partnership, trust or other
entity shall be deemed to be a Transfer and subject to all of the provisions of this Article IX.
Tenant shall make available to Landlord or its representatives all of its corporate, partnership
or other such records, as the case may be, for inspection at all reasonable times, in order to
ascertain whether there has been any Change of Control of Tenant.

9.5   No Advertisement. Tenant shall not advertise the whole or any part of the
Premises for the purposes of a Transfer and shall not permit any broker or other person to do so
unless the complete text and format of any such advertisement is first approved in writing by
Landlord. No such advertisement shall contain any reference to the rental rate of the Premises.

9.6   Assignment by Landlord. Landlord shall have the unrestricted right to sell,
lease, convey or otherwise dispose of the Building or any part thereof and this Lease or any
interest of Landlord in this Lease. The term “Landlord” as used in this Lease, so far as covenants
or obligations on the part of Landlord are concerned, shall be limited to mean and include only
the owner or owners at the time in question of the fee of the Premises. In the event of any
transfer or transfers of the title in such fee, Landlord herein named (and in case of any
subsequent transfers, the then grantor) shall be relieved from and after the date of such transfer
of all liability with respect to performance of any covenants or obligations on the part of
Landlord contained in this Lease thereafter to be performed. Without further agreement, the
transferee of such title shall be deemed to have assumed and agreed to observe and perform any and
all obligations of Landlord hereunder during Landlord’s ownership of the Premises.

ARTICLE X

DEFAULT

10.1   Defaults. A default by Tenant shall be deemed to have occurred hereunder if:

a.    any Minimum Rent is in arrears whether or not any notice or demand for payment has been
made by Landlord;

b.    any Additional Rent is in arrears and is not paid within three (3) days after written
demand by Landlord;

c.    Tenant has breached any of its obligations in this Lease (other than the payment of Rent)
and Tenant fails to remedy such breach within 15 days (or such shorter period as may be provided
in this Lease), or if such breach cannot reasonably be remedied within 15 days (or such shorter
period), then if Tenant fails to immediately commence to remedy and thereafter proceed diligently
to remedy such breach, in each case after notice in writing from Landlord;

d.    Tenant or any Guarantor or any of the affiliates, shareholders, principals or officers of
either Tenant or Guarantor becomes bankrupt, insolvent (i.e., unable to pay its debts as they
arise, or with liabilities greater than assets), or takes the benefit of any statute for bankrupt
or insolvent debtors or makes any proposal, assignment or arrangement with its creditors, or any
steps are taken or proceedings commenced by any person for the dissolution, winding-up or other
termination of Tenants existence or the liquidation of its assets;

e.    a trustee, receiver, or like person is appointed with respect to the business or assets of
Tenant or any Guarantor;

f.    Tenant makes a sale in bulk of all or a substantial portion of its assets other than in
conjunction with a Transfer approved by Landlord;

g.    this Lease or any of Tenant’s assets are taken under a writ of execution;

 

 

 

Exhibit 10.10

h.    Tenant proposes to make a Transfer other than in compliance with the provisions of this
Lease;

i.    Tenant abandons or attempts to abandon the Premises or disposes of its goods so that there
would not after such disposal be sufficient goods of Tenant on the Premises subject to distress to
satisfy Rent for at least three months, or the Premises become vacant or unoccupied for a period
of five consecutive days or more without the consent of Landlord;

j.    any of Landlords policies of insurance with respect to the Building are actually or
threatened to be cancelled or adversely changed as a result of any use or occupancy of the
Premises; or

k.    any obligations of Tenant or any Guarantor owing to Landlord, whether or not related to
this Lease and however arising (whether by operation of law, contract, acquired, or otherwise)
shall be in default.

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

a.    Landlord may terminate this Lease by notice to Tenant and retake possession of the
Premises for Landlord’s account.

b.    Landlord may re-take possession of the Premises for the account of Tenant and recover from
Tenant Landlord’s damages arising from Tenant’s default and Landlord’s retaking of possession. If
this remedy is elected by Landlord, Landlord’s damages shall be determined as follows: a) The fair
market value of the Premises for the remaining Term of this Lease after Tenant’s default, reduced
to its present value using a then current discount rate, shall be determined by a licensed Florida
real estate appraiser mutually agreed to by both parties, Such appraiser shall take into
consideration the actual terms of any re-rental of the Premises, if Landlord has been able to
re-rent same, and any other factors deemed relevant by such appraiser. The conclusion of such
appraiser as to such present value shall be binding on the parties. b) Such present value shall be
subtracted from the present value of the Rent reserved under this Lease for the remainder of the
Term following Tenant’s default. Such present value shall be determined by the same appraiser,
using a discount rate of 6%. The conclusion of such appraiser as to such present value shall be
binding on the parties. c) The difference between the two present values computed under a) and b)
above shall have added to it all sums owing to Landlord and accrued prior to Tenant’s default,
plus all of Landlords costs, direct and indirect, of re-taking possession, preparing the Premises
for re-rental, and re-renting the Premises. It the Premises are not re-rented at the time Landlord
brings its action for damages under this provision, or if the term of the re-rental is for a
period less than the remaining Term of this Lease and therefor additional re-rentals may be
required to fill the remaining Term, then in either case Landlord shall make a reasonable estimate
of such costs and such estimate shall be binding on the parties. The costs referred to above shall
include, but not be limited to, legal fees, cleaning, painting, re-fixturing, partitioning,
repairs, advertising, lease commissions and an administrative fee to Landlord equal to 20% of all
the costs referred to in this Section 10.2(c).

c.    Landlord may remedy or attempt to remedy any default of Tenant under this Lease for the
account of Tenant and enter upon the Premises for such purposes. No notice of Landlord’s intention
to perform such covenants need be given Tenant unless expressly required by this Lease. Landlord
shall not be liable to Tenant for any loss or damage caused by acts of Landlord in remeddng or
attempting to remedy such default, and Tenant shall pay to Landlord all expenses incurred by
Landlord in connection with remedying or attempting to remedy such default.

d.    Landlord may recover from Tenant all damages and expenses incurred by Landlord as a result
of any breach by Tenant.

 

 

 

Exhibit 10.10

e.    If default is undisputed by Tenant, Landlord may accelerate all Rent for the entire Term
and may further declare any option periods null and void. Nothing herein, however, shall excuse
any obligation on the part of landlord to mitigate and/or re-let Premises.

10.3   Costs. Tenant shall pay to Landlord on demand all costs incurred by Landlord,
including attorneys’ fees and costs at all tribunal levels, incurred by Landlord in enforcing any
of the obligations of Tenant under this Lease.

10.4   Allocation of Payments. Landlord may at its option apply any sums received from
Tenant against any amounts due and payable by Tenant under this Lease in such manner as Landlord
sees fit and regardless of the express purpose for which the tender was made and regardless of any
endorsement placed on the check by which payment is made.

10.5   Section Deleted.

10.6   Landlord’s Other Rights. In the event Tenant has filed for protection under the
Federal Bankruptcy Law, and the trustee desires to assume or assign this Lease, the trustee must
take into account the provisions contained in 11 U.S.C. ‘365(b)(3) which include adequate
assurance of the source of the rent, protection for exclusive use provisions, and that any
assignment will not substantially disrupt any Tenant’s use, and provided further that reasonable
attorneys’ fees that were incurred by Landlord in the bankruptcy proceedings will be reimbursed.
In the event of a default by Tenant for the nonpayment of rent or failure of Tenant to surrender
possession after expiration of the term hereof, Tenant hereby expressly waives its right to the
three-day notice of default as required by Florida Statutes 83.20 (2).

Landlord shall have a Landlord’s lien upon all furnishings, fixtures, equipment, decorations,
supplies, accessories and other property which Tenant owns or in which it has an interest located
on the Premises to secure the payment of all rental and other sums due hereunder, and the
performance of all other obligations of Tenant under this Lease.

ARTICLE XI

ATTORNMENT AND SUBORDINATION

11.1   Estoppel Certificate. Within 10 days after written request by Landlord, Tenant
shall deliver in a form supplied by Landlord an estoppel certificate to Landlord as to the status
of this Lease, including whether this Lease is unmodified and in full force and effect (or, if
there have been modifications, that this Lease is in full force and effect as modified and
identifying the modification agreements); the commencement and expiration dates of the Term; the
amount of Minimum Rent and Additional Rent then being paid and the dates to which same have been
paid; whether or not there is any existing or alleged default by either party with respect to
which a notice of default has been served and if there is any such default, specifying the nature
and extent thereof; and any other matters pertaining to this Lease as to which Landlord shall
request such certificate. Tenant’s failure to timely provide Landlord with such estoppel
certificate shall constitute (a) a material, uncurable default under this Lease, at Landlord’s
option, and (b) Tenants acquiescence to Landlord’s statements concerning the Lease which may be
relied upon by any person holding or intending to acquire any interest whatsoever in the Premises
or the Building and shall constitute as to any persons entitled to rely on such statements a
waiver by Tenant of any defaults by Landlord or defenses or offsets against the enforcement of
this Lease by Landlord which may exist prior to the date of the written request.

11.2   Subordination. This Lease and all rights of Tenant shall be subject and
subordinate to any and all Mortgages from time to time in existence against the Building, whether
now existing or hereafter created. On request, and from time to time, Tenant shall further
evidence its agreement to subordinate this Lease and its rights under this Lease to any and all
Mortgages and to all advances made under such Mortgages. The form of such subordination shall be
made as required by Landlord or any Mortgagee.

 

 

 

Exhibit 10.10

11.3   Attornment. Tenant shall promptly on request attorn to any Mortgagee, or to the
future owner(s) of the Building, or the purchaser at any foreclosure or sale under proceedings
taken under any Mortgage, and shall recognize such Mortgagee, owner, or purchaser as
Landlord under this Lease. On request, and from time to time, Tenant shall further evidence
its agreement to attorn. The form of such attornment shall be made as required by the Mortgagee or
future owner which requests such attornment.

11.4   Subordination, Nondisturbance and Attornment Agreement. Upon request by Tenant,
Landlord agrees to make commercially reasonable efforts to execute a Subordination, Nondisturbance
and Attornment Agreement.

ARTICLE XII

CONTROL OF BUILDING BY LANDLORD

12.1   Use and Maintenance of Common Areas. Tenant and those doing business with Tenant
for purposes associated with Tenant’s business on the Premises, shall have a non-exclusive right
to use the Common Areas for their intended purposes during normal business hours in common with
others entitled thereto and subject to any rules and regulations imposed by Landlord. Landlord
shall keep the Common Areas in good repair and condition and shall clean the Common Areas when
necessary. Tenant acknowledges that its non-exclusive right to use any parking facilities forming
part of the Building is subject to such rules and regulations as imposed by Landlord from time to
time, and to Landlord’s absolute right to allocate certain areas of the parking facilities for the
exclusive use by invitees to the Building. Tenant acknowledges that all Common Areas shall at all
times be under the exclusive control and management of Landlord. Landlord may at any time and from
time to time, in its sole discretion, eliminate, relocate, expand, reduce, modify or prescribe
changes in the permitted use of any or all of the present or future Common Areas, and no such
action of Landlord shall be deemed to be an eviction of Tenant. Said Common Areas of the Building
may be expanded, contracted or changed by Landlord from time to time as required or deemed
desirable.

If Landlord deems it necessary to prevent the acquisition of public rights, Landlord from
time to time may temporarily close portions of the Common Area, erect private boundary marks or
take further appropriate action for that purpose and such action shall not be deemed an eviction
or disturbance of Tenant’s use of the Premises.

12.2   Alterations by Landlord. Landlord may (a) alter, add to, subtract from,
construct improvements on, re-arrange, and construct additional facilities in, adjoining or
proximate to the Building; (b) relocate the facilities and improvements in or comprising the
Building or erected on the Land; (c) do such things on or in the Building as required to comply
with any laws, regulations, orders or directives affecting the Land or any part of the Building;
and (d) do such other things on or in the Building as Landlord, in the use of good business
judgment determines to be advisable, provided that notwithstanding anything contained in this
Section 12.2, access to the Premises shall be available at all times. Landlord shall not be in
breach of its covenants for quiet enjoyment or liable for any loss, costs or damages, whether
direct or indirect, incurred by Tenant due to any of the foregoing.

12.3   Tenant Relocation. Landlord shall have the right, at any time upon sixty (60)
days written notice to Tenant, to relocate Tenant into other space within the Building. Upon such
relocation, such new space shall be deemed the Premises and the prior space originally demised
shall in all respects be released from the effect of this Lease. If Landlord elects to relocate
Tenant as above described, (i) the new space shall contain approximately the same as or greater
useable area than the original space, (H) Landlord shall improve the new space, at Landlord’s sole
cost, to at least the standards of the original space, (Ni) Landlord shall pay the reasonable
costs of moving Tenant’s Trade Fixtures and furnishings from the original space to the new space,
(iv) as total compensation for all other costs, expenses and damages which Tenant may suffer in
connection with the relocation, including but not limited to lost profit or business interruption,
no Minimum Rent, or Operating Costs shall be due or payable for the first full calendar month of
Tenant’s occupancy of the new space, and Landlord shall not, unless such is reasonably
foreseeable, be liable for any further indirect or special expenses of Tenant resulting from the
relocation, (v) Rent, Tenant’s Proportionate Share of Operating Costs and all other charges
hereunder shall be the same for the new space as for the original space,
notwithstanding that the new space may be larger than the original space, and (vi) all other
terms of this Lease shall apply to the new space as the Premises, except as otherwise provided in
this paragraph.

 

 

 

Exhibit 10.10

ARTICLE XIII

CONDEMNATION

13.1   Total Taking. If the whole of the Premises shall be taken by any public
authority under the power of eminent domain or sold to public authority under threat or in lieu of
such taking, the Term shall cease as of the day possession or title shall be taken by such public
authority, whichever is earlier (“Taking Date”), whereupon the Rent shall be paid up to the Taking
Date with a proportionate refund by Landlord of any Rent paid for a period subsequent to the
Taking Date.

13.2   Partial Taking.

a.    If less than the whole but more than 25% the Premises, or more than 50% of the area of
that portion of Common Areas serving the retail component of the Building, or more than 50% of the
Gross Rentable Area of the retail component of the Building shall be taken under eminent domain,
or sold to public authority under threat or in lieu of such a taking, Tenant shall have the right
upon notice to Landlord within 10 days after the Taking Date either to terminate this Lease as of
the Taking Date, or, subject to Landlord’s right of termination as set forth in Subsection
14.2(C), to continue in possession of the remainder of the Premises. In the event Tenant elects to
remain in possession, all of the terms of this Lease shall continue in effect, except that as of
the Taking Date, Minimum Rent and other charges payable by Tenant shall be reduced in proportion
to the floor area of the Premises taken. Landlord shall, at its cost, but only to the extent of
net proceeds of condemnation received by Landlord, make all necessary repairs or alterations
within the scope of Landlord’s Work and Landlord’s duties under Section 5.1 so as to constitute
the remaining Premises a complete architectural unit, and Tenant, at Tenant’s cost, shall be
obligated to perform all of Tenant’s Work and Tenant’s duties under Section 5.2 and otherwise
restore the Premises and Tenant’s Trade Fixtures.

b.    If 25% or less of the Premises shall be so taken, the Term shall cease only as to the part
so taken as of the Taking Date, and Tenant shall pay Rent and other charges up to the Taking Date,
with appropriate credit by Landlord (toward the next installment of Rent due from Tenant) of any
Rent or charges paid for a period subsequent to the Taking Date. Minimum Rent and other charges
payable to Landlord shall be reduced in proportion to the amount of the Premises taken. Landlord
shall, at its expense, but only to the extent of net proceeds of condemnation received by
Landlord, make all necessary repairs or alterations within the scope of Landlord’s Work so as to
constitute the remaining Premises a complete architectural unit, and Tenant, at Tenant’s expense,
shall be obligated to perform all of Tenant’s Work and otherwise restore the Premises and Tenant’s
trade fixtures.

c.    If more than 20% of (i) the area of that portion of Common Areas serving the retail
component of the Building, (U) the Gross Rentable Area of the retail component of the Building, or
(Hi) the Premises shall be taken under power of eminent domain, or sold to public authority under
the threat or in lieu of such a taking, Landlord may, by notice to Tenant delivered on or before
the thirtieth (30th) day following the Taking Date, terminate this Lease as of the Taking Date.
Rent and other charges shall be paid up to the Taking Date, with an appropriate refund by Landlord
of any Rent paid for a period subsequent thereto.

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

 

 

 

Exhibit 10.10

ARTICLE XIV

GENERAL PROVISIONS

14.1   Rules and Regulations. Tenant shall comply with all Rules and Regulations, and
amendments thereto, adopted by Landlord from time to time including those set out in Schedule “D”,
so long as such Rules and Regulations are not inconsistent with and do not contradict this Lease.
The Rules and Regulations may differentiate between different types of businesses in the Building.
Landlord shall not be responsible to Tenant for any non-observance of such Rules or Regulations by
any other tenant of the Building. Defined terms in the Rules and Regulations shall have the
meanings set forth in this Lease.

14.2   Delay. Except as expressly provided in this Lease, whenever Landlord or Tenant
is delayed in the fulfillment of any obligation under this Lease, other than the payment of Rent,
by an unavoidable occurrence which is not the fault of the party delayed in performing such
obligation, then the time for fulfillment of such obligation shall be extended during the period
in which such circumstances operate to delay the fulfillment of such obligation.

14.3 Holding Over. If Tenant remains in possession of the Premises after the end of
the Term with the consent of Landlord but without having executed and delivered a new lease or an
agreement extending the Term, there shall be no tacit renewal of this Lease or the Term, and
Tenant shall be deemed to be occupying the Premises as a Tenant from month to month at a monthly
Minimum Rent payable in advance on the first day of each month equal to twice the monthly amount
of Minimum Rent payable during the last month of the Term, and otherwise upon the same terms as
are set forth in this Lease including all other payments of Rent, so far as they are deemed
applicable by Landlord to a monthly tenancy.

14.4   Waiver. Landlord’s failure to take or delay in taking advantage of any default
or breach of covenant on the part of Tenant shall not be construed as a waiver thereof, nor shall
any custom or practice which may grow between the parties in the course of administering this
Lease be construed to waive or to lessen the right of Landlord to insist upon the strict
performance by Tenant of any term, covenant or condition hereof, or to exercise any rights of
Landlord on account of any such default. In no case will Landlord be deemed to have waived any of
Landlord’s rights under this Lease, law or equity, unless Landlord delivers to Tenant a written
waiver executed by an officer of Landlord which expressly identifies the right being waived. A
waiver of a particular breach or default shall not be deemed to be a waiver of the same or any
other subsequent breach or default. The acceptance of rent hereunder shall not be, or be construed
to be, a waiver of any breach of any term, covenant or condition of this Lease. The presentation
of any rent or other charge hereunder in the form of a check marked by Tenant to constitute a
waiver of any default shall not constitute such waiver even though endorsed and cashed by Landlord
unless Landlord expressly agrees to waive such default by separate written instrument. No
surrender of the Premises for the remainder of the term hereof shall operate to release Tenant
from liability hereunder.

14.5   Recording. Neither Tenant nor anyone claiming under Tenant shall record this
Lease or any memorandum hereof in any public records without the prior written consent of
Landlord.

14.6   Notices. Any notice, consent or other instrument required or permitted to be
given under this Lease shall be in writing and shall be delivered in person, or sent by certified
mail, return receipt requested, or nationally recognized overnight courier service postage
prepaid, addressed (a) if to Landlord, at the address set forth in the Lease Summary; and (b) if
to Tenant, at the Premises or, prior to Tenant’s occupancy of the Premises, at the address set
forth on the Lease Summary. Any such notice or other instruments shall be deemed to have been
given and received on the day upon which personal delivery is made or, if mailed, then two
business days following the date of mailing or, if sent nationally recognized overnight courier
service, then on the business days after consignment to such service. Either party may
give notice to the other of any change of address and after the giving of such notice, the
address therein specified shall be deemed to be the address of such party for the giving of
notices.

 

 

 

Exhibit 10.10

14.7   Successors. The rights and liabilities created by this Lease extend to and bind
the successors and assigns of Landlord and the heirs, executors, administrators and permitted
successors and assigns of Tenant. No rights, however, shall inure to the benefit of any Transferee
unless the provisions of Article IX are complied with.

14.8   Joint and Several Liability. If there is at any time more than one Tenant or
more than one person constituting Tenant, their covenants shall be considered to be joint and
several and shall apply to each and every one of them.

14.9   Captions and Section Numbers. The captions, section numbers, article numbers and
table of contents appearing in this Lease are inserted only as a matter of convenience and in no
way affect the substance of this Lease.

14.10   Extended Meanings. The words “hereof”, ‘hereto” and “hereunder” and similar
expressions used in this Lease relate to the whole of this Lease and not only to the provisions in
which such expressions appear, and the word “include” or “including” or words of similar import
shall be deemed to be followed by the words “without limitation”. This Lease shall be read with
all changes in number and gender as may be appropriate or required by the context. Any reference
to Tenant includes, where the context allows, the employees, agents, invitees and licensees of
Tenant and all others over whom Tenant might reasonably be expected to exercise control. This
Lease has been fully reviewed and negotiated by each party and their counsel and shall not be more
strictly construed against either party.

14.11   Partial Invalidity. All of the provisions of this Lease are to be construed as
covenants even though not expressed as such. If any such provision is held or rendered illegal or
unenforceable it shall be considered separate and severable from this Lease, and the remaining
provisions of this Lease shall remain in force and bind the parties as though the illegal or
unenforceable provision had never been included in this Lease.

14.12   Entire Agreement. This Lease and the Schedules addenda and riders, if any,
attached hereto are incorporated herein and set forth the entire agreement between Landlord and
Tenant concerning the Premises and there are no other agreements or understandings between them.
This Lease and its Schedules and Riders may not be modified except by agreement in writing
executed by Landlord and Tenant.

14.13   Governing Law. This Lease shall be construed in accordance with and governed by
the laws of the State of Florida. In the event of any litigation arising under this Lease or any
Guaranty, proper venue shall be in the county wherein the Premises are located.

14.14   Time. Time is of the essence of Tenant’s obligations under the lease. Any time
period herein specified of five days or less shall mean business days; any period in excess of
five days shall mean calendar days.

14.15   No Partnership. Nothing in this Lease creates any relationship between the
parties other than that of lessor and lessee and nothing in this Lease constitutes Landlord a
partner of Tenant or a joint venturer or member of a common enterprise with Tenant.

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

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

 

 

 

Exhibit 10.10

14.18   Authority. Tenant is a duly authorized and qualified to do business in the
state in which the Premises are located, and Tenant has full right and authority to enter into
this Lease, and each of the persons signing on Tenant’s behalf are authorized to do so. In
addition, Tenant warrants that it is not necessary for any other person, firm, corporation, or
entity to join in the execution of this Lease to make Tenant’s execution complete, appropriate and
binding.

14.19   Lease Validity. Notwithstanding anything to the contrary contained herein or in
this Lease, the submission of this Lease for examination and/or execution by Tenant does not
constitute a reservation of or option for the Premises for the benefit of Tenant and the Lease
and/or any Addendum shall have no force or validity unless and until duly executed by Landlord and
delivered by Landlord to Tenant.

14.20   Brokerage. Tenant warrants that it has had no dealings with any broker or agent
in connection with this Lease other than the Broker, if any, named in the Lease Summary, and
covenants to pay, defend, hold harmless and indemnify Landlord from and against any and all cost,
expense or liability for any compensation, commissions and charges claimed by any other broker or
agent with respect to this Lease or the negotiation thereof with whom Tenant had, or is alleged to
have had, dealings.

14.21   TRIAL BY JURY. TENANT AND LANDLORD HEREBY WAIVE ANY AND ALL RIGHT TO A JURY
TRIAL ON ANY ISSUE OR CONTROVERSY ARISING UNDER THIS LEASE.

IN WITNESS WHERE, Landlord and Tenant have duly executed this Lease in several counterparts
as of the day and year first above written, each of which counterpart shall be considered an
executed original. In making proof of this Lease, it shall not be necessary to produce or account
for more than one counterpart.

Landlord may act under this Lease through its attorney, agent or other designee. Further, in
the event it is necessary to file a lawsuit to enforce any of Landlord’s rights under this Lease,
the parties agree that such lawsuit may be filed in the name of the Landlord, its agent or other
designee at the Landlord’s complete discretion.

	 	 	 
	Witness:

	 	OWNER/LANDLORD
	 
	 	 
	 
	 	 
	 

	 	 

	 

	 	ORANGE BLOSSOM INVESTMENTS, LLC,

a Florida limited liability company

	 

	 	By: Jacques Mamann, Managing Member
	 
	 	 
	 

	 	/s/ Jacques Mamann
	 

	 	 
	 

	 	Date October 13, 2006
	 
	 	 
	Witness:

	 	TENANT
	 
	 	 
	/s/ Adelaida Savard

	 	NATIONSHEALTH, INC., a Delaware corporation
	 

	 	 

	 

	 	By: Glenn Parker, MD., Chief Executive Officer
	 
	 	 
	 

	 	/s/ Glenn M. Parker
	 

	 	 
	 

	 	Date October 13, 2006

 

 

 

Exhibit 10.10

SCHEDULE A

SITE PLAN OF PREMISES

 

 

 

Exhibit 10.10

SCHEDULE B

	1.	 	LANDLORD’S WORK

	 	1)	 	All damaged or discolored ceiling tiles to be replaced

	 
	 	2)	 	Existing carpet and tile flooring to be professional cleaned.

	 
	 	3)	 	Interior walls to be repainted

	 
	 	4)	 	The two existing door openings to be closed up.

	 
	 	5)	 	HVAC to be in good working order and,

	 
	 	6)	 	to provide independent electrical and HVAC system as well as to meter subject space
separately

	2.	 	TENANT’S WORK

	 	a.	 	Tenant agrees to take possession of the property in “as is, where is” condition and perform
all work as required to place Premises in satisfactory condition for business operation. All
leasehold improvements must be approved by the Landlord prior to their commencement and receive the
proper permits as required by the local and state governmental authorities. Tenant is permitted to
make improvements upon written approval, not unreasonably withheld, of said improvement plans by
the Landlord prior to commencement. All licenses and permits, if required, are the Tenant’s
responsibility.

 

 

 

Exhibit 10.10

SCHEDULE C

RENT SCHEDULE

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Base	 	 	Base	 	 	Base	 	 	%	 	 	Est. Pass-	 	 	 	 	 	 	 
	Sq Ft	 	Rate	 	 	Yearly	 	 	Monthly	 	 	Increase	 	 	Thrus /	 	 	 	 	 	 	 
	6,193	 	per SF	 	 	Rental Rate	 	 	Rental Rate	 	 	Per Year	 	 	S.F. $2.75	 	 	Sales Tax	 	 	Total	 
	YEAR I
	 	$	11.50	 	 	$	71,219.50	 	 	$	5,934.96	 	 	 	 	 	 	$	1,419.23	 	 	$	441.25	 	 	$	7,795.44	 
	YEAR II
	 	$	11.85	 	 	$	73,356.09	 	 	$	6,113.01	 	 	 	3%		 	$	1,419.23	 	 	$	451.93	 	 	$	7,984.17	 
	YEAR III
	 	$	12.20	 	 	$	75,556.77	 	 	$	6,296.40	 	 	 	3%		 	$	1,419.23	 	 	$	462.94	 	 	$	8,178.56	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Monies Due al Lease Signing	 	 	 	 	 	 	 	 	 	 	 	 
	1st Month’s Rent	 	 	 	 	 	$	7,795.44	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Last Month’s Rent	 	 	 	 	 	$	8,178.56	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Security Deposit	 	 	 	 	 	$	7,795.44	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL MONIES DUE AT LEASE SIGNING ON OR BEFORE	 	 	 	 	 	$	23,769.44	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

 

Exhibit 10.10

SCHEDULE D

DEFINITIONS

In this Lease and in Schedules to this Lease:

1.    “Additional Rent” means all sums of money required to be paid by Tenant under this
Lease (except Minimum Rent and Percentage Rent) whether or not the same are designated Additional
Rent” or are payable to Landlord or otherwise.

2.    “Alterations” means all repairs, replacements, additions or modifications to the
Premises by Tenant, including, but not limited to, Tenants Work.

3.   “Architect” means the architect from time to time named by Landlord.

4.    “Business Tax” means all taxes, levies, assessments, licenses and fines (whether
imposed on Landlord or Tenant) attributable to the personal property, trade fixtures, business,
income, occupancy or sales of Tenant or any other occupant of the Premises and to the use of the
Building by Tenant.

5.    “Change of Control” means, in the case of any corporation, trust, partnership or
other entity, the transfer or issue by sale, assignment, subscription, transmission on death,
mortgage, charge, security interest, operation of law or otherwise, of any shares, voting rights
or partnership or beneficial interest which would result in any change in the effective control of
such corporation, trust, partnership or other entity unless such change occurs as a result of
trading in the shares of a corporation listed on a recognized stock exchange in Canada or the
United States and then only so long as Landlord receives assurances reasonably satisfactory to it
that there will be a continuity of management and of the business practices of such entity
notwithstanding such Change of Control.

6.    “Commencement Date” means the date on which the Term commences, as provided under
Section 1.2.

7.    “Common Areas” means those areas, facilities, utilities, improvements, equipment
and installations in or adjacent to the Building which serve or are for the benefit of the tenants
of more than one component of the Building and which are not designated or intended by Landlord to
be leased, from time to time, or which are provided or designated from time to time by Landlord
for the benefit or use of all tenants in the Building, their employees, customers and invitees, in
common with others entitled to the use or benefit of same, and shall include, without limitation,
parking lots, landscaped areas, passages for trucks and automobiles, areaways, private roads,
walks, curbs, corridors, garden courts and arcades, together with public facilities, if any, such
as wash rooms, comfort rooms, lounges, drinking fountains, toilets, public stairs, ramps,
elevators, escalators, shelters, porches, bus stations and loading docks together with interior
service corridors giving access thereto, with facilities appurtenant to each, or any other area or
premises in the entire Building tract not under lease or designed for lease to a tenant for use
and occupancy.

8.    “CPI” has the meaning set forth in Section 2.2.

9.    “Expiration Date” means the date on which the Term expires, as provided under
Section 1.2, or any sooner date on which this Lease is terminated pursuant to the provisions
hereof.

10.    “Expiration Year” means the calendar year, that number of years following the
year of the Commencement Date, equal to the number of years of the Term as set forth on the Lease
Summary.

11.    “First Partial Month” means, in the event the Commencement Date is not the first
day of a month, the period from the Commencement Date to the first day of the next month.

12.    “Fixturing Period” means the period so specified in the Lease Summary.

 

 

 

Exhibit 10.10

13.    “Force Majeure” means a delay arising from or as a result of strike, lockout or
labor difficulty; explosion, sabotage, accident, riot or civil commotion; act of war; fire or
other catastrophe; a legal requirement; an act by Tenant; or any cause beyond the reasonable
control of Landlord.

14.    “Gross Rentable Area of the Premises” means the number of square feet of space in
the Premises whether above or below grade and shall be calculated by Landlord’s architect to
extend (i) to the centerline of the structural portion of every wall or division separating the
Premises from rented or rentable space, (H) (except in the case of any storefront) to the exterior
face of any other wall or division marking the boundaries of the Premises, (Hi) to include all
space on the exterior of storefronts up to the lease lines shown on the sketch of the Premises
attached hereto as Schedule A (storefronts shall not be deemed walls), (iv) to extend from the top
surface of the structural sub-floor to the bottom of the structural ceiling, and (v) to include
all interior space whether or not occupied by interior projections, stairways, shafts, ventilation
spaces, columns, pipes, conduits or the like, and other physical features.

15.    “Gross Rentable Area of the Building” means the sum of the aggregate gross
rentable areas of all portions of the Building which are leased or designated for lease, with the
area for all of such portions to be calculated on a similar basis as the Gross Rentable Area of
the Premises was calculated.

16.    “Gross Revenue” means the entire amount of the sale price, whether for cash or
otherwise, of all sales (including rentals) of merchandise and services and of all other receipts
whatsoever in respect of all business conducted at, in, upon or from the Premises, although orders
for same may be filled elsewhere, and including all sales by any sub-lessee, concessionaire,
licensee, vending machine, coin operated machine, or otherwise in the Premises and including all
insurance proceeds received in respect of loss or damage to stock and compensation for loss of
business sales or profits. Gross Revenue shall not include, however, (i) any sums (other than any
commission or service fee to Tenant) shown separately from the price, collected and paid out for
any sales, service, or similar tax, levied by any governmental authority which Tenant is required
to remit to such authority; (ii) the exchange of goods or merchandise between the stores of
Tenant, if any, where such exchange of goods or merchandise is made solely for the convenient
operation of the business of Tenant and not for the purpose of consummating a sale which has been
made at, in, from or upon the Premises; (Hi) the amount of any discount on sales actually given to
bona fide employees of Tenant, (iv) the amount of returns to shippers or to manufacturers; (v) the
amount of merchandise sold or some part thereof which is thereafter returned by the purchaser and
accepted by Tenant; (vi) sales of fixtures or other capital items sold by Tenant after use thereof
in the conduct of Tenant’s business in the Premises; (vH) deposits on merchandise until the sale
is final or the deposit permanently retained by Tenant; (vii) uncollected credit accounts; or
(vHi) income from bona fide charitable collections.

17.    “Guarantor” means any person who has executed or agreed to execute any guaranty
of Tenant’s obligations hereunder.

18.    “Land” means the land situated in the City of Fort Pierce, St. Lupie County,
Florida, on which the Building is or will be constructed, as more particularly described in
Schedule E, or as such lands may be expanded or reduced from time to time.

19.    “Landlord” means Transwestern Commercial Services, agent for the owner, and its
successors and assigns.

20.    “Landlord’s Work” means that work to be performed by Landlord described in
Section 1-3.

21.    “Lease Summary” means the outline of basic terms, dollar amounts and other
information forming a part of this Lease and appearing as the first pages of this Lease.

 

 

 

Exhibit 10.10

22.    “Lease Year” means the 12 full calendar months commencing on the first day of the
month immediately following the month in which the Commencement Date occurs and each
consecutive 12 month period thereafter unless the Commencement Date is the first day of a month,
in which event the first Lease Year shall commence on the Commencement Date. However, the final
Lease Year may contain less than 12 months due to expiration or sooner termination of the Term. If
the Commencement Date is not on the first day of a month, the period from the Commencement Date to
the first day of the next month is referred to herein as the “First Partial Month” and shall be
deemed included in the first Lease Year.

23.    “Leasehold Improvements” means leasehold improvements in the Premises determined
according to common law, and shall include, without limitation: all fixtures, improvements,
installations, alterations and additions from time to time made, erected or installed in the
Premises by or on behalf of Tenant or any previous occupant of the Premises, including signs and
lettering, partitions, doors and hardware however affixed and whether or not movable; all
mechanical, electrical and utility installations and all carpeting and drapes with the exception
only of furniture and equipment not in the nature of fixtures.

24.    “Minimum Rent” means the minimum rent payable by Tenant pursuant to Section 22.

25.    “Mortgage” means any and all mortgages, security agreements, ground leases or
like instruments resulting from any financing, refinancing, collateral financing or other
transactions (including renewals, extensions, modifications, replacements, consolidations or
substitutions thereof and all advances made or to be made thereunder and all interest thereon)
made or arranged by Landlord of its interest in all or any part of the Building.

26.    “Mortgagee” means the holder of, or secured party under, any Mortgage and
includes any trustee for bondholders.

27.    “Opening Date” means the joint opening date for the Building, if any, as
designated by Landlord.

28.    “Operating Costs” means any amounts paid or payable whether by Landlord or by
others on behalf of Landlord, arising out of Landlord’s ownership, maintenance, operation, repair,
replacement and administration of the Building including without limitation:

a.    the cost of Taxes, including all costs associated with the appeal of any assessment on
Taxes;

b.    the cost of insurance, including, without limitation, fees to agents and administrative
fees in connection with such insurance, which Landlord is obligated or permitted to obtain under
this Lease (including, but not limited to, rent insurance) and any deductible amount applicable to
any claim made by Landlord under such insurance;

c.    the cost of security, repairs and maintenance of the parking lot, re-striping of the
parking lot, exterior painting, any other improvements as may be required by a regulatory
authority, janitorial, landscaping, window cleaning, garbage removal and trash removal services;

d.    the cost of repair and replacement of heating, ventilating and air conditioning equipment
serving any portion of the Building including any rentable space;

e.    the cost of all fuel, water, electricity, telephone and other utilities used in the
maintenance, operation or administration of the Building;

f.    salaries, wages and other amounts paid or payable for all personnel involved in the
repair, maintenance, operation, security, supervision or cleaning of the Building, including
fringe benefits, unemployment and workmen’s compensation insurance premiums, pension plan
contributions and other employment costs and the cost of engaging independent contractors to
perform any of the foregoing services;

g.    auditing and accounting fees and costs;

h.    the cost of repairing replacing, operating, and maintaining the Building and the equipment
serving the Building, except where such costs are attributable to inherent structural defects in
the Building;

 

 

 

Exhibit 10.10

i.    the cost of the rental of any equipment and signs;

j.    amortization of the costs referred to in h. immediately above, to the extent not charged
fully in the year in which they are incurred, all as determined by Landlord in accordance with
sound accounting principles, together with interest on any unamortized balance of such costs
calculated at average prime rate during the period of calculation of any major bank designated by
Landlord;

k.    a management fee equal to 15 % of Operating Costs excluding Taxes.

Operating Costs shall exclude only: (1) all amounts which otherwise would be included in Operating
Costs which are actually recovered by Landlord from specic tenants by separate agreement or as a
result of any act, omission, default or negligence of such tenants; (2) income taxes on Landlord’s
income from the Building; (3) such of the
Operating Costs as are recovered from insurance proceeds; (4) interest on debt and retirement of
debt principal
(except as above provided); (5) the cost of any additional capital item not part of the initial
construction of the
Building.

29.    “Person” means any person, firm, partnership or corporation, or any group or
combination of persons, firms, partnerships or corporations.

30.    “Premises” means the premises leased to Tenant described in Section 1.1 and
includes Leasehold Improvements in such Premises.

31.    “Proportionate Share” means a fraction which has as its numerator the Gross
Rentable Area of the Premises and as its denominator the Gross Rentable Area of the Building;
provided, however, in the event Landlord, acting in good faith and in a reasonable manner,
determines that the foregoing fraction does not accurately reflect Tenant’s proper share of
Operating Costs as to any one or more items of Operating Costs, then Landlord shall have the right
to adjust Tenant’s share of Operating Costs as to those items and such adjusted fraction shall be
Tenant’s Proportionate Share as to those items. In making such determination, Landlord may
consider the nature and intensity of use of any service or facility made by Tenant, and any use or
improvement made by Tenant affecting the Premises or the Building.

32.   “Rent” means the aggregate of Minimum Rent and Additional Rent.

33.    “Rules and Regulations” mean the rules and regulations adopted and promulgated by
Landlord from time to time pursuant to Section 13.1. The Rules and Regulations existing as at the
Commencement Date are those set out in Schedule D.

34.    “Building” means the Building buildings and the Land on which same is erected,
known generally as Orange Blossom Business Center and includes all facilities and
buildings erected from time to time on the Land and further includes each and every part of any
such building or facilities whether or not rented or rentable, together with areas and facilities
serving the Building or having utility in connection therewith such as malls, sidewalks, parking
facilities, mechanical areas, truck and receiving areas, loading docks, driveways and the like.

35.    “Taxes” means all real estate, personal property and other ad valorem taxes, and
any other levies, charges, local improvement rates and assessments whatsoever assessed or charged
against the Building, the equipment and improvements therein contained, or any part thereof, by
any lawful taxing authority and including any amounts assessed or charged in substitution for or
in lieu of any such taxes, excluding only income or capital gains taxes, to the extent such taxes
are not levied in lieu of any of the foregoing against the Building or Landlord and excluding any
Business Tax.

36.    “Tenant” means the party so identified on the first page of this Lease, such
parts/s permitted successors and assigns, and is deemed to include the word “lessee” and includes
every Person mentioned as Tenant in this Lease.

 

 

 

Exhibit 10.10

37.    “Tenant’s Work” means that work to be performed by Tenant described in Section
1.3.

38.    “Term” means the period set out in Section 1.2 and any renewal periods, if any
(and any other periods during which Tenant has possession of the Premises).

39.    “Trade Fixtures” means trade fixtures as determined at common law, but shall not
include: (a) heating, ventilating or air conditioning systems, facilities and equipment in or
serving the Premises; (b) floor covering affixed to the floor of the Premises; (c) light fixtures;
(d) internal stairways and doors; and (e) any fixtures, facilities, equipment or installations
installed by or at the expense of Landlord, all of which are deemed to be Leasehold Improvements.

40.    “Transfer” means an assignment of this Lease in whole or in part; a sublease of
all or any part of the Premises; the granting of a concession of any sort; any transaction whereby
the rights of Tenant under this Lease or to the Premises are transferred to another; any
transaction by which any right or use or occupancy of all or any part of the Premises is conferred
upon anyone; any mortgage or encumbrance of this Lease or the Premises or any part thereof or
other arrangement under which either this Lease or the Premises become security for any
indebtedness or other obligations and includes any transaction or occurrence whatsoever
(including, but not limited to, expropriation, receivership proceedings, seizure by legal process
and transfer by operation of law), which has changed or might change the identity of the Persons
having lawful use or occupancy of any part of the Premises.

41.    “Transferee” means the Person or Persons to whom a Transfer is to be made.

 

 

 

Exhibit 10.10

SCHEDULE E

RULES AND REGULATIONS

1.     Security. Landlord may from time to time adopt appropriate systems and procedures
for the security or safety of the Building, any Persons occupying, using or entering the same, or
any equipment, furnishings or contents thereof, and Tenant shall comply with Landlord’s reasonable
requirements relative thereto.

2.    Return of Keys. At the end of the Term, Tenant shall promptly return to Landlord
all keys for the Building and Premises which are in the possession of Tenant. In the event any
Tenant fails to return keys, Landlord may retain $50.00 of Tenant’s security deposit for locksmith
work and administration.

3.    Repair, Maintenance. Alterations and Improvements. Tenant shall carry out Tenant’s
repair, maintenance, alterations, and improvements in the Premises only during times agreed to in
advance by Landlord and in a manner which will not interfere with the rights of other tenants in
the Building.

4. Water Fixtures. Tenant shall not use water fixtures for any purpose for which they
are not intended, nor shall water be wasted by tampering with such fixtures. Any cost or damage
resulting from such misuse by Tenant shall be paid for by Tenant.

5.    Personal Use of Premises. The Premises shall not be used or permitted to be used
for residential, lodging or sleeping purposes or for the storage of personal effects or property
not required for business purposes.

6.    Heavy Articles. Tenant shall not place in or move about the Premises without
Landlord’s prior written consent any safe or other heavy article which in Landlord’s reasonable
opinion may damage the Building, and Landlord may designate the location of any such heavy articles
in the Premises.

7.    Bicycles, Animals. Tenant shall not bring any animals or birds into the Building,
and shall not permit bicycles or other vehicles inside or on the sidewalks outside the Building
except in areas designated from time to time by Landlord for such purposes.

8.    Deliveries. Tenant shall ensure that deliveries of supplies, fixtures, equipment,
furnishings, wares and merchandise to the Premises are made through such entrances, elevators and
corridors and at such times as may from time to time be designated by Landlord, and shall promptly
pay or cause to be paid to Landlord the cost of repairing any damage in the Building caused by any
person making improper deliveries.

9.    Solicitations. Landlord reserves the right to restrict or prohibit canvassing,
soliciting or peddling in the Building.

10.    Food and Beverages. Only persons approved from time to time by Landlord may
prepare, solicit orders for, sell, serve or distribute foods or beverages in the Building, or use
the Common Areas for any such purpose.

11.    Refuse. Tenant shall place all refuse in proper receptacles provided by Tenant at
its expense in the Premises or in receptacles (if any) provided by Landlord for the Building, and
shall keep sidewalks and driveways outside the Building free of all refuse.

12.    Obstructions. Tenant shall not obstruct or place anything in or on the sidewalks
or driveways outside the Building or in the lobbies, corridors, stairwells or other Common Areas,
or use such locations for any purpose except access to and exit from the Premises without
Landlord’s prior written consent. Landlord may remove at Tenant’s expense any such obstruction or
thing caused or placed by Tenant (and unauthorized by Landlord) without notice or obligation to
Tenant.

13.    Proper Conduct. Tenant shall not conduct itself in any manner which is
inconsistent with the character of the Building as a first quality Building or which will impair
the comfort and convenience of other tenants in the Building.

 

 

 

Exhibit 10.10

14.    Employees, Agents and lnvitees. In these Rules and Regulations, Tenant includes
the employees, agents, invitees and licensees of Tenant and others permitted by Tenant to use or
occupy the Premises.

15.    Parking. If Landlord designates tenant parking areas in the Building, Tenant shall
park its vehicles and shall cause its employees and agents to park their vehicles only in such
designated parking areas. Tenant shall furnish Landlord, upon request, with the current license
numbers of all vehicles owned or used by Tenant or its employees and agents and Tenant thereafter
shall notify Landlord of any changes in such numbers within five (5) days after the occurrence
thereof. In the event of failure of Tenant or its employees and agents to park their vehicles in
such designated parking areas, Tenant shall forthwith on demand pay to Landlord, the sum of TWENTY
DOLLARS ($20.00) per day per each car so parked. Landlord may itself or through any agent
designated for such purpose, make, administer, and enforce additional rules and regulations
regarding parking by tenants and by their employees and agents in the Building, including, without
limitation, rules and regulations permitting Landlord or such agent to move any vehicles improperly
parked to the designated tenant or employee parking areas. No disabled vehicles shall be left in
the parking areas of the Building for more than 24 hours,

16.    Pest Control. In order to maintain satisfactory and uniform pest control
throughout the Building, Tenant shall engage for its own Premises and at its sole cost, a qualified
pest extermination contractor either designated or approved by Landlord, who shall pertorm pest
control and extermination services in the Premises at such intervals as reasonably required or as
may be directed by Landlord.

 

 

 

Exhibit 10.10

RIDER 1

OPTION TO RENEW

 

Intentionally Deleted

 

 

 

Exhibit 10.10

RIDER 2

GUARANTY

Intentionally DeletedExhibit 4.(a) Company Order and Officer's Certificate

    
      

    

     

    EXHIBIT
      4(a)

    November
      14, 2006

    

    

    Company
      Order and Officers’ Certificate

    6.05%
      Senior Notes, Series H, due 2037

    

    

    The
      Bank
      of New York, as Trustee

    101
      Barclay St. - 8W

    New
      York,
      New York 10286

    

    Ladies
      and Gentlemen:

    

    Pursuant
      to Article Two of the Indenture, dated as of October 1, 1998 (as it may be
      amended or supplemented, the “Indenture”), from Indiana Michigan Power Company
      (the “Company”) to The Bank of New York, as trustee (the “Trustee”), and the
      Board Resolutions dated July 28, 2005, a copy of which certified by the
      Secretary or an Assistant Secretary of the Company is being delivered herewith
      under Section 2.01 of the Indenture, and unless otherwise provided in a
      subsequent Company Order pursuant to Section 2.04 of the Indenture,

    

    1. The
      Company’s 6.05% Senior Notes, Series H, due 2037 (the “Notes”) are hereby
      established. The Notes shall be in substantially the form attached hereto as
      Exhibit 1. 

    

    2. The
      terms
      and characteristics of the Notes shall be as follows (the numbered clauses
      set
      forth below corresponding to the numbered subsections of Section 2.01 of the
      Indenture, with terms used and not defined herein having the meanings specified
      in the Indenture):

    

    (i) the
      aggregate principal amount of Notes which may be authenticated and delivered
      under the Indenture shall be limited to $400,000,000, except as contemplated
      in
      Section 2.01 of the Indenture;

    

    (ii) the
      date
      on which the principal of the Notes shall be payable shall be March 15,
      2037;

    

    (iii) interest
      shall accrue from the date of authentication of the Notes; the Interest Payment
      Dates on which such interest will be payable shall be March 15 and September
      15,
      and the Regular Record Date for the determination of holders to whom interest
      is
      payable on any such Interest Payment Date shall be the February 28 or August
      31
      prior to the relevant Interest Payment Date; provided that the first Interest
      Payment Date shall be March 15, 2007 and interest payable on the Stated Maturity
      Date or any Redemption Date shall be paid to the Person to whom principal shall
      be paid;

    

    (iv) the
      interest rate at which the Notes shall bear interest shall be 6.05% per
      annum;

    

    (v) the
      Notes
      shall be redeemable at the option of the Company, in whole at any time or in
      part from time to time, upon not less than thirty but not more than sixty days’
previous notice given by mail to the registered owners of the Notes at a
      redemption price equal to the greater of (i) 100% of the principal amount of
      the
      Notes being redeemed and (ii) the sum of the present values of the remaining
      scheduled payments of principal and interest on the Notes being redeemed
      (excluding the portion of any such interest accrued to the date of redemption)
      discounted (for purposes of determining present value) to the redemption date
      on
      a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months)
      at the Treasury Rate (as defined below) plus 25 basis points, plus, in each
      case, accrued interest thereon to the date of redemption.

    

    “Treasury
      Rate” means, with respect to any redemption date, the rate per annum equal to
      the semi-annual equivalent yield to maturity of the Comparable Treasury Issue,
      assuming a price for the Comparable Treasury Issue (expressed as a percentage
      of
      its principal amount) equal to the Comparable Treasury Price for such redemption
      date.

    

    “Comparable
      Treasury Issue” means the United States Treasury security selected by an
      Independent Investment Banker as having a maturity comparable to the remaining
      term of the Notes that would be utilized, at the time of selection and in
      accordance with customary financial practice, in pricing new issues of corporate
      debt securities of comparable maturity to the remaining term of the
      Notes.

    

    “Comparable
      Treasury Price” means, with respect to any redemption date, (i) the average of
      the Reference Treasury Dealer Quotation for such redemption date, after
      excluding the highest and lowest such Reference Treasury Dealer Quotations,
      or
      (ii) if the Company obtains fewer than four such Reference Treasury Dealer
      Quotations, the average of all such quotations.

    

    

    “Independent
      Investment Banker” means one of the Reference Treasury Dealers appointed by the
      Company and reasonably acceptable to the Trustee.

    

    “Reference
      Treasury Dealer” means a primary U.S. government securities dealer in New York
      City selected by the Company and reasonably acceptable to the
      Trustee.

    

    “Reference
      Treasury Dealer Quotation” means, with respect to the Reference Treasury Dealer
      and any redemption date, the average, as determined by the Trustee, of the
      bid
      and asked prices for the Comparable Treasury Issue (expressed in each case
      as a
      percentage of its principal amount) quoted in writing to the Trustee by such
      Reference Treasury Dealer at or before 5:00 p.m., New York City time, on the
      third Business Day preceding such redemption date.

    

    
      	 	 	
              (vi)
                (a) the Notes shall be issued in the form of a Global Note; (b) the
                Depositary for such Global Note shall be The Depository Trust Company;
                and
                (c) the procedures with respect to transfer and exchange of Global
                Notes
                shall be as set forth in the form of Note attached
                hereto;

            

    

    

    (vii) the
      title
      of the Notes shall be “6.05% Senior Notes, Series H, due 2037”;

    

    (viii) the
      form
      of the Notes shall be as set forth in Paragraph 1, above;

    

    (ix) not
      applicable;

    

    (x) the
      Notes
      may be subject to a Periodic Offering;

    

    (xi) not
      applicable;

    

    (xii) not
      applicable;

    

    (xiii) not
      applicable;

    

    (xiv) the
      Notes
      shall be issuable in denominations of $1,000 and any integral multiple
      thereof;

    

    (xv) not
      applicable;

    

    (xvi) the
      Notes
      shall not be issued as Discount Securities;

    

    (xvii) not
      applicable;

    

    (xviii) not
      applicable; and

    

    (xix) Limitations
      on Liens:

    So
      long
      as any of the Notes are outstanding, the Company will not create or suffer
      to be
      created or to exist any mortgage, pledge, security interest, or other lien
      (collectively “Liens”) on any of the Company’s utility properties or tangible
      assets now owned or hereafter acquired to secure any indebtedness for borrowed
      money (“Secured Debt”), without providing that such Notes will be similarly
      secured. This restriction does not apply to the Company’s subsidiaries, nor will
      it prevent any of them from creating or permitting to exist Liens on their
      property or assets to secure any Secured Debt. In addition, this restriction
      does not prevent the creation or existence of:

    

    
      	·  	
              Liens
                on property existing at the time of acquisition or construction of
                such
                property (or created within one year after completion of such acquisition
                or construction), whether by purchase, merger, construction or otherwise,
                or to secure the payment of all or any part of the purchase price
                or
                construction cost thereof, including the extension of any Liens to
                repairs, renewals, replacements substitutions, betterments, additions,
                extensions and improvements then or thereafter made on the property
                subject thereto; 

            

    

    

    
      	·  	
              Financing
                of the Company’s accounts receivable for electric service;
                

            

    

    

    
      	·  	
              Any
                extensions, renewals or replacements (or successive extensions, renewals
                or replacements), in whole or in part, of liens permitted by the
                foregoing
                clauses; and

            

    

    

    
      	·  	
              The
                pledge of any bonds or other securities at any time issued under
                any of
                the Secured Debt permitted by the above
                clauses.

            

    

    

    In
      addition to the permitted issuances above, Secured Debt not otherwise so
      permitted may be issued in an amount that does not exceed 15% of Net Tangible
      Assets as defined below. 

    

    “Net
      Tangible Assets” means the total of all assets (including revaluations thereof
      as a result of commercial appraisals, price level restatement or otherwise)
      appearing on the Company’s balance sheet, net of applicable reserves and
      deductions, but excluding goodwill, trade names, trademarks, patents,
      unamortized debt discount and all other like intangible assets (which term
      shall
      not be construed to include such revaluations), less the aggregate of the
      Company’s current liabilities appearing on such balance sheet. For purposes of
      this definition, the Company's balance sheet does not include assets and
      liabilities of its subsidiaries.

    

    This
      restriction also will not apply to or prevent the creation or existence of
      leases (operating or capital) made, or existing on property acquired, in the
      ordinary course of business.

    

    3. You
      are
      hereby requested to authenticate $400,000,000 aggregate principal amount of
      6.05% Senior Notes, Series H, due 2037, executed by the Company and delivered
      to
      you concurrently with this Company Order and Officers’ Certificate, in the
      manner provided by the Indenture.

    

    4. You
      are
      hereby requested to hold the Notes as custodian for DTC in accordance with
      the
      Blanket Issuer Letter of Representations dated November 10, 2004, from the
      Company to DTC.

    

    5. Concurrently
      with this Company Order and Officers’ Certificate, an Opinion of Counsel under
      Sections 2.04 and 13.06 of the Indenture is being delivered to you.

    

    6. The
      undersigned Stephan T. Haynes and Thomas G. Berkemeyer, the Assistant Treasurer
      and Assistant Secretary, respectively, of the Company do hereby
      certify

                 that:

    

    (i) we
      have
      read the relevant portions of the Indenture, including without limitation the
      conditions precedent provided for therein relating to the action proposed to
      be
      taken by the Trustee as requested in this Company Order and Officers’
Certificate, and the definitions in the Indenture relating thereto;

    

    (ii) we
      have
      read the Board Resolutions of the Company and the Opinion of Counsel referred
      to
      above;

    

    (iii) we
      have
      conferred with other officers of the Company, have examined such records of
      the
      Company and have made such other investigation as we deemed relevant for
      purposes of this certificate;

    

    (iv) in
      our
      opinion, we have made such examination or investigation as is necessary to
      enable us to express an informed opinion as to whether or not such conditions
      have been complied with; and 

    

    (v) on
      the
      basis of the foregoing, we are of the opinion that all conditions precedent
      provided for in the Indenture relating to the action proposed to be taken by
      the
      Trustee as requested herein have been complied with.

    Kindly
      acknowledge receipt of this Company Order and Officers’ Certificate, including
      the documents listed herein, and confirm the arrangements set forth herein
      by
      signing and returning the copy of this document attached hereto.

    

    Very
      truly yours,

    

    INDIANA
      MICHIGAN POWER COMPANY

    

    

    By:    
      /s/ Stephan T. Hayanes

    Stephan
      T. Haynes

    Assistant
      Treasurer

    

    

    And:  /s/
      Thomas G. Berkemeyer

    Thomas
      G.
      Berkemeyer 

    Assistant
      Secretary

    

    

    Acknowledged
      by Trustee:

    

    

    By:  
      /s/ Mary LaGumina

    Authorized
      Signatory

    
      
        

      

    Exhibit
      1

    

    Unless
      this certificate is presented by an authorized representative of The Depository
      Trust Company (55 Water Street, New York, New York) to the issuer or its agent
      for registration of transfer, exchange or payment, and any certificate to be
      issued is registered in the name of Cede & Co. or in such other name as is
      requested by an authorized representative of The Depository Trust Company and
      any payment is made to Cede & Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
      FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the
      registered owner hereof, Cede & Co., has an interest herein. Except as
      otherwise provided in Section 2.11 of the Indenture, this Security may be
      transferred, in whole but not in part, only to another nominee of the Depository
      or to a successor Depository or to a nominee of such successor
      Depository.

    

    No.
      R1

    

    INDIANA
      MICHIGAN POWER COMPANY

    6.05%
      Senior Notes, Series H, due 2037

    

    

    CUSIP:     454889
      AM
      8                                                   Original
      Issue Date: November 14,
      2006

    

    Stated
      Maturity:     March 15,
      2037                                                     
         Interest
      Rate: 6.05%

    

    Principal
      Amount:     $400,000,000

    

    Redeemable:
             Yes
      þ  No
       ̈

    In
      Whole:             Yes
þ  No
       ̈

    In
      Part:         Yes
      þ  No
       ̈

    

    INDIANA
      MICHIGAN POWER COMPANY, a corporation duly organized and existing under the
      laws
      of the State of Indiana (herein referred to as the “Company”, which term
      includes any successor corporation under the Indenture hereinafter referred
      to),
      for value received, hereby promises to pay to CEDE & CO. or registered
      assigns, the Principal Amount specified above on the Stated Maturity specified
      above, and to pay interest on said Principal Amount from the Original Issue
      Date
      specified above or from the most recent interest payment date (each such date,
      an “Interest Payment Date”) to which interest has been paid or duly provided
      for, semi-annually in arrears on March 15 and September 15 in each year,
      commencing on March 15, 2007, at the Interest Rate per annum specified above,
      until the Principal Amount shall have been paid or duly provided for. Interest
      shall be computed on the basis of a 360-day year of twelve 30-day
      months.

    

    The
      interest so payable, and punctually paid or duly provided for, on any Interest
      Payment Date, as provided in the Indenture, as hereinafter defined, shall be
      paid to the Person in whose name this Note (or one or more Predecessor
      Securities) shall have been registered at the close of business on the Regular
      Record Date with respect to such Interest Payment Date, which shall be the
      February 28 or August 31 (whether or not a Business Day) prior to such Interest
      Payment Date, provided that interest payable on the Stated Maturity or any
      redemption date shall be paid to the Person to whom principal is paid. Any
      such
      interest not so punctually paid or duly provided for shall forthwith cease
      to be
      payable to the Holder on such Regular Record Date and shall be paid as provided
      in said Indenture.

    

    If
      any
      Interest Payment Date, any redemption date or Stated Maturity is not a Business
      Day, then payment of the amounts due on this Note on such date will be made
      on
      the next succeeding Business Day, and no interest shall accrue on such amounts
      for the period from and after such Interest Payment Date, redemption date or
      Stated Maturity, as the case may be, with the same force and effect as if made
      on such date. The principal of (and premium, if any) and the interest on this
      Note shall be payable at the office or agency of the Company maintained for
      that
      purpose in the Borough of Manhattan, the City of New York, New York, in any
      coin
      or currency of the United States of America which at the time of payment is
      legal tender for payment of public and private debts; provided, however, that
      payment of interest (other than interest payable on the Stated Maturity or
      any
      redemption date) may be made at the option of the Company by check mailed to
      the
      registered holder at such address as shall appear in the Security
      Register.

    

    This
      Note
      is one of a duly authorized series of Notes of the Company (herein sometimes
      referred to as the “Notes”), specified in the Indenture, all issued or to be
      issued in one or more series under and pursuant to an Indenture dated as of
      October 1, 1998 duly executed and delivered between the Company and The Bank
      of
      New York, a corporation organized and existing under the laws of the State
      of
      New York, as Trustee (herein referred to as the “Trustee”) (such Indenture, as
      originally executed and delivered and as thereafter supplemented and amended
      being hereinafter referred to as the “Indenture”), to which Indenture and all
      indentures supplemental thereto or Company Orders reference is hereby made
      for a
      description of the rights, limitations of rights, obligations, duties and
      immunities thereunder of the Trustee, the Company and the holders of the Notes.
      By the terms of the Indenture, the Notes are issuable in series which may vary
      as to amount, date of maturity, rate of interest and in other respects as in
      the
      Indenture provided. This Note is one of the series of Notes designated on the
      face hereof.

    

    This
      Note
      may be redeemed by the Company at its option, in whole at any time or in part
      from time to time, upon not less than thirty but not more than sixty days’ prior
      notice given by mail to the registered owners of the Notes at a redemption
      price
      equal to the greater of (i) 100% of the principal amount of the Notes being
      redeemed and (ii) the sum of the present values of the remaining scheduled
      payments of principal and interest on the Notes being redeemed (excluding the
      portion of any such interest accrued to the date of redemption) discounted
      (for
      purposes of determining present value) to the redemption date on a semi-annual
      basis (assuming a 360-day year consisting of twelve 30-day months) at the
      Treasury Rate (as defined below) plus 25 basis points, plus, in each case,
      accrued interest thereon to the date of redemption.

    

    “Treasury
      Rate” means, with respect to any redemption date, the rate per annum equal to
      the semi-annual equivalent yield to maturity of the Comparable Treasury Issue,
      assuming a price for the Comparable Treasury Issue (expressed as a percentage
      of
      its principal amount) equal to the Comparable Treasury Price for such redemption
      date.

    

    “Comparable
      Treasury Issue” means the United States Treasury security selected by an
      Independent Investment Banker as having a maturity comparable to the remaining
      term of the Notes that would be utilized, at the time of selection and in
      accordance with customary financial practice, in pricing new issues of corporate
      debt securities of comparable maturity to the remaining term of the
      Notes.

    

    

    “Comparable
      Treasury Price” means, with respect to any redemption date, (1) the average of
      the Reference Treasury Dealer Quotations for such redemption date, after
      excluding the highest and lowest such Reference Treasury Dealer Quotations,
      or
      (2) if we obtain fewer than four such Reference Treasury Dealer Quotations,
      the
      average of all such quotations.

    

    “Independent
      Investment Banker” means one of the Reference Treasury Dealers appointed by the
      Company and reasonably acceptable to the Trustee.

    

    “Reference
      Treasury Dealer” means a primary U. S. government securities dealer in New York
      City selected by the Company and reasonably acceptable to the
      Trustee.

    

    “Reference
      Treasury Dealer Quotation” means, with respect to the Reference Treasury Dealer
      and any redemption date, the average, as determined by the Trustee, of the
      bid
      and asked prices for the Comparable Treasury Issue (expressed in each case
      as a
      percentage of its principal amount) quoted in writing to the Trustee by such
      Reference Treasury Dealer at or before 5:00 p.m., New York City time, on the
      third Business Day preceding such redemption date.

    

    The
      Company shall not be required to (i) issue, exchange or register the transfer
      of
      any Notes during a period beginning at the opening of business 15 days before
      the day of the mailing of a notice of redemption of less than all the
      outstanding Notes of the same series and ending at the close of business on
      the
      day of such mailing, nor (ii) register the transfer of or exchange of any Notes
      of any series or portions thereof called for redemption. This Global Note is
      exchangeable for Notes in definitive registered form only under certain limited
      circumstances set forth in the Indenture.

    

    In
      the
      event of redemption of this Note in part only, a new Note or Notes of this
      series, of like tenor, for the unredeemed portion hereof will be issued in
      the
      name of the Holder hereof upon the surrender of this Note.

    

    In
      case
      an Event of Default, as defined in the Indenture, shall have occurred and be
      continuing, the principal of all of the Notes may be declared, and upon such
      declaration shall become, due and payable, in the manner, with the effect and
      subject to the conditions provided in the Indenture.

    

    The
      Indenture contains provisions for defeasance at any time of the entire
      indebtedness of this Note upon compliance by the Company with certain conditions
      set forth therein.

    

    As
      described in the Company Order and Officers’ Certificate, so long as this Note
      is outstanding, the Company is subject to a limitation on Liens as described
      therein.

    The
      Indenture contains provisions permitting the Company and the Trustee, with
      the
      consent of the Holders of not less than a majority in aggregate principal amount
      of the Notes of each series affected at the time outstanding, as defined in
      the
      Indenture, to execute supplemental indentures for the purpose of adding any
      provisions to or changing in any manner or eliminating any of the provisions
      of
      the Indenture or of any supplemental indenture or of modifying in any manner
      the
      rights of the Holders of the Notes; provided, however, that no such supplemental
      indenture shall (i) extend the fixed maturity of any Notes of any series, or
      reduce the principal amount thereof, or reduce the rate or extend the time
      of
      payment of interest thereon, or reduce any premium payable upon the redemption
      thereof, or reduce the amount of the principal of a Discount Security that
      would
      be due and payable upon a declaration of acceleration of the maturity thereof
      pursuant to the Indenture, without the consent of the holder of each Note then
      outstanding and affected; (ii) reduce the aforesaid percentage of Notes, the
      holders of which are required to consent to any such supplemental indenture,
      or
      reduce the percentage of Notes, the holders of which are required to waive
      any
      default and its consequences, without the consent of the holder of each Note
      then outstanding and affected thereby; or (iii) modify any provision of Section
      6.01(c) of the Indenture (except to increase the percentage of principal amount
      of securities required to rescind and annul any declaration of amounts due
      and
      payable under the Notes), without the consent of the holder of each Note then
      outstanding and affected thereby. The Indenture also contains provisions
      permitting the Holders of a majority in aggregate principal amount of the Notes
      of all series at the time outstanding affected thereby, on behalf of the Holders
      of the Notes of such series, to waive any past default in the performance of
      any
      of the covenants contained in the Indenture, or established pursuant to the
      Indenture with respect to such series, and its consequences, except a default
      in
      the payment of the principal of or premium, if any, or interest on any of the
      Notes of such series. Any such consent or waiver by the registered Holder of
      this Note (unless revoked as pro-vided in the Indenture) shall be conclusive
      and
      binding upon such Holder and upon all future Holders and owners of this Note
      and
      of any Note issued in exchange herefor or in place hereof (whether by
      registration of transfer or otherwise), irrespective of whether or not any
      notation of such consent or waiver is made upon this Note.

    

    No
      reference herein to the Indenture and no provision of this Note or of the
      Indenture shall alter or impair the obligation of the Company, which is absolute
      and unconditional, to pay the principal of and premium, if any, and interest
      on
      this Note at the time and place and at the rate and in the money herein
      prescribed.

    

    As
      provided in the Indenture and subject to certain limitations therein set forth,
      this Note is transferable by the registered holder hereof on the Security
      Register of the Company, upon surrender of this Note for registration of
      transfer at the office or agency of the Company as may be designated by the
      Company accompanied by a written instrument or instruments of transfer in form
      satisfactory to the Company or the Trustee duly executed by the registered
      Holder hereof or his or her attorney duly authorized in writing, and thereupon
      one or more new Notes of authorized denominations and for the same aggregate
      principal amount and series will be issued to the designated transferee or
      transferees. No service charge will be made for any such trans-fer, but the
      Company may require payment of a sum sufficient to cover any tax or other
      governmental charge payable in relation thereto.

    

    Prior
      to
      due presentment for registration of transfer of this Note, the Company, the
      Trustee, any paying agent and any Security Registrar may deem and treat the
      registered Holder hereof as the absolute owner hereof (whether or not this
      Note
      shall be overdue and notwithstanding any notice of ownership or writing hereon
      made by anyone other than the Security Registrar) for the purpose of receiving
      payment of or on account of the principal hereof and premium, if any, and
      interest due hereon and for all other purposes, and neither the Company nor
      the
      Trustee nor any paying agent nor any Security Registrar shall be affected by
      any
      notice to the contrary.

    

    No
      recourse shall be had for the payment of the principal of or the interest on
      this Note, or for any claim based hereon, or otherwise in respect hereof, or
      based on or in respect of the Indenture, against any incorporator, stockholder,
      officer or director, past, present or future, as such, of the Company or of
      any
      predecessor or successor corporation, whether by virtue of any constitution,
      statute or rule of law, or by the enforcement of any assessment or penalty
      or
      otherwise, all such liability being, by the acceptance hereof and as part of
      the
      consideration for the issuance hereof, expressly waived and
      released.

    

    The
      Notes
      of this series are issuable only in registered form without coupons in
      denominations of $1,000 and any integral multiple thereof. As provided in the
      Indenture and subject to certain limitations, Notes of this series are
      exchangeable for a like aggregate principal amount of Notes of this series
      of a
      different authorized denomination, as requested by the Holder surrendering
      the
      same.

    

    All
      terms
      used in this Note which are defined in the Indenture shall have the meanings
      assigned to them in the Indenture.

    

    This
      Note
      shall not be entitled to any benefit under the Indenture hereinafter referred
      to, be valid or become obligatory for any purpose until the Certificate of
      Authentication hereon shall have been signed by or on behalf of the
      Trustee.

    

    IN
      WITNESS WHEREOF, the Company has caused this Instrument to be
      executed.

    

    INDIANA
      MICHIGAN POWER COMPANY

    

    

    By:   
      /s/ Stephan T. Haynes

    Stephan
      T. Haynes

    Assistant
      Treasurer

    Attest:

    

    

    By:    
      /s/ Thomas G. Berkemeyer

    Thomas
      G.
      Berkemeyer

    Assistant
      Secretary

    
      
        

      

    

    CERTIFICATE
      OF AUTHENTICATION

    

    This
      is
      one of the Notes of the series of Notes designated in accordance with, and
      referred to in, the within-mentioned Indenture.

    

    Dated:
      November 14, 2006

    

    THE
      BANK
      OF NEW YORK

    

    

    By: 
      /s/ Mary LaGumina

           
      Authorized Signatory

    
      
        

      

    FOR
      VALUE
      RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
      unto

    

    (PLEASE
      INSERT SOCIAL SECURITY OR OTHER

    IDENTIFYING
      NUMBER OF ASSIGNEE)

    

    _______________________________________

    

    ________________________________________________________________

    

    ________________________________________________________________

    (PLEASE
      PRINT OR TYPE NAME AND ADDRESS, INCLUDING ZIP CODE, OF

    ________________________________________________________________

    ASSIGNEE)
      the within Note and all rights thereunder, hereby

    ________________________________________________________________

    irrevocably
      constituting and appointing such person attorney to 

    ________________________________________________________________

    transfer
      such Note on the books of the Issuer, with full

    ________________________________________________________________

    power
      of
      substitution in the premises.

    

     

    Dated:________________________  _________________________

    

     

    NOTICE: The
      signature to this assignment must correspond with the name as written upon
      the
      face of the within Note in every particular, without alteration or enlargement
      or any change whatever and NOTICE: Signature(s) must be guaranteed by a
      financial institution that is a member of the Securities Transfer Agents
      Medallion Program (“STAMP”), the Stock Exchange Medallion Program (“SEMP”) or
      the New York Stock Exchange, Inc. Medallion Signature Program
      (“MSP”).

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