Document:

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                                                                     Exhibit 4.4

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                          REGISTRATION RIGHTS AGREEMENT

                          Dated As of November 24, 2003

                                      among

                            GENERAL CABLE CORPORATION

                                       and

                      THE GUARANTORS WHO ARE A PARTY HERETO

                                       and

                              MERRILL LYNCH & CO.,

               MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

                                       and

                               UBS SECURITIES LLC

            As Representatives of the Initial Purchasers named herein

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                          REGISTRATION RIGHTS AGREEMENT

                  This Registration Rights Agreement (the "Agreement") is made
and entered into this 24th day of November, 2003, among General Cable
Corporation, a Delaware corporation (the "Company"), each of the guarantors
listed in Schedule A attached hereto (the "Guarantors," and together with the
Company, the "Issuers") and Merrill Lynch, Pierce, Fenner & Smith Incorporated
("Merrill Lynch"), UBS Securities LLC ("UBS"), and each other Initial Purchaser
set forth on Schedule B attached hereto (collectively, the "Initial
Purchasers"), for whom Merrill Lynch and UBS are acting as representatives (the
"Representatives").

                  This Agreement is made pursuant to the Purchase Agreement,
dated November 18, 2003, by and among the Issuers and the Initial Purchasers
(the "Purchase Agreement"), which provides for the sale by the Company to the
Initial Purchasers of an aggregate of $285,000,000 million principal amount of
the Company's 9.5% Senior Notes due 2010 (the "Notes") as described in the
Purchase Agreement, which are to be unconditionally guaranteed by the Guarantors
on a senior basis (the "Guarantees" and, together with the Notes, the
"Securities"). In order to induce the Initial Purchasers to enter into the
Purchase Agreement, the Issuers have agreed to provide to the Initial Purchasers
and their direct and indirect transferees the registration rights set forth in
this Agreement. The execution of this Agreement is a condition to the closing
under the Purchase Agreement.

                  In consideration of the foregoing, the parties hereto agree as
follows:

                  1. Definitions. As used in this Agreement, the following
capitalized defined terms shall have the following meanings:

                  "1933 Act" shall mean the Securities Act of 1933, as amended
from time to time.

                  "1934 Act" shall mean the Securities Exchange Act of l934, as
amended from time to time.

                  "Closing Date" shall mean the Closing Time as defined in the
Purchase Agreement.

                  "Company" shall have the meaning set forth in the preamble and
shall also include the Company's successors.

                  "Depositary" shall mean The Depository Trust Company, or any
other depositary appointed by the Company, provided, however, that such
depositary must have an address in the Borough of Manhattan, in the City of New
York.

                  "Exchange Offer" shall mean the exchange offer by the Company
of Exchange Securities for Registrable Securities pursuant to Section 2.1
hereof.

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                  "Exchange Offer Registration" shall mean a registration under
the 1933 Act effected pursuant to Section 2.1 hereof.

                  "Exchange Offer Registration Statement" shall mean an exchange
offer registration statement on Form S-4 (or, if applicable, on another
appropriate form), and all amendments and supplements to such registration
statement, including the Prospectus contained therein, all exhibits thereto and
all documents incorporated by reference therein.

                  "Exchange Period" shall have the meaning set forth in Section
2.1 hereof.

                  "Exchange Securities" shall mean the 9.5% Senior Notes due
2010, Series B issued by the Company under the Indenture containing terms
identical to the Securities in all material respects except that references to
certain interest rate provisions, restrictions on transfers and restrictive
legends shall be deleted, unconditionally guaranteed by the Guarantors on a
senior basis, pursuant to, and entitled to the benefits of, the Indenture or a
trust indenture which is substantially identical to the Indenture (which, in
either case, shall be qualified under the TIA) and registered pursuant to an
effective Registration Statement under the Securities Act, to be offered to
Holders of Securities in exchange for Registrable Securities pursuant to the
Exchange Offer. The Exchange Securities will be issued as evidence of the same
continuing indebtedness of the Issuers and will not constitute the creation of
new indebtedness.

                  "Holder" shall mean an Initial Purchaser, for so long as it
owns any Registrable Securities, and each of its successors, assigns and direct
and indirect transferees who become registered owners of Registrable Securities
under the Indenture and each Participating Broker-Dealer that holds Exchange
Securities for so long as such Participating Broker-Dealer is required to
deliver a prospectus meeting the requirements of the 1933 Act in connection with
any resale of such Exchange Securities.

                  "Indenture" shall mean the Indenture relating to the
Securities, dated as of November 24, 2003, between the Issuers and U.S. Bank
National Association, as trustee, as the same may be amended, supplemented,
waived or otherwise modified from time to time in accordance with the terms
thereof.

                  "Initial Purchaser" or "Initial Purchasers" shall have the
meaning set forth in the preamble.

                  "Majority Holders" shall mean the Holders of a majority of the
aggregate principal amount of Outstanding (as defined in the Indenture)
Registrable Securities; provided that whenever the consent or approval of
Holders of a specified percentage of Registrable Securities is required
hereunder, Registrable Securities held by the Company and other obligors on the
Securities or any Affiliate (as defined in the Indenture) of the Company shall
be disregarded in determining whether such consent or approval was given by the
Holders of such required percentage amount.

                  "Participating Broker-Dealer" shall mean any of Merrill Lynch,
Pierce, Fenner & Smith Incorporated and UBS Securities LLC and any other
broker-dealer which makes a market in the Securities and exchanges Registrable
Securities in the Exchange Offer for Exchange Securities.

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                  "Person" shall mean an individual, partnership (general or
limited), corporation, limited liability company, trust or unincorporated
organization, or a government or agency or political subdivision thereof.

                  "Private Exchange" shall have the meaning set forth in Section
2.1 hereof.

                  "Private Exchange Securities" shall have the meaning set forth
in Section 2.1 hereof.

                  "Prospectus" shall mean the prospectus included in a
Registration Statement, including any preliminary prospectus, and any such
prospectus as amended or supplemented by any prospectus supplement, including
any such prospectus supplement with respect to the terms of the offering of any
portion of the Registrable Securities covered by a Shelf Registration Statement,
and by all other amendments and supplements to a prospectus, including
post-effective amendments, and in each case including all material incorporated
by reference therein.

                  "Purchase Agreement" shall have the meaning set forth in the
preamble.

                  "Registrable Securities" shall mean the Securities and, if
issued, the Private Exchange Securities; provided, however, that Securities and,
if issued, the Private Exchange Securities, shall cease to be Registrable
Securities when (i) a Registration Statement with respect to such Securities or
Private Exchange Securities shall have been declared effective under the 1933
Act and such Securities or Private Exchange Securities shall have been disposed
of pursuant to such Registration Statement, (ii) such Securities or Private
Exchange Securities have been sold to the public pursuant to Rule l44 (or any
similar provision then in force, but not Rule 144A) under the 1933 Act, (iii)
such Securities or Private Exchange Securities shall have ceased to be
outstanding, (iv) the Exchange Offer is consummated (except in the case of
Securities purchased from the Company and continued to be held by the Initial
Purchasers) or (v) such Securities or Private Exchange Securities cease to be
outstanding.

                  "Registration Expenses" shall mean any and all expenses
incident to performance of or compliance by the Company with this Agreement,
including without limitation: (i) all SEC, stock exchange or National
Association of Securities Dealers, Inc. (the "NASD") registration and filing
fees, including, if applicable, the fees and expenses of any "qualified
independent underwriter" (and its counsel) that is required to be retained by
any holder of Registrable Securities in accordance with the rules and
regulations of the NASD, (ii) all fees and expenses incurred in connection with
compliance with state securities or blue sky laws and compliance with the rules
of the NASD (including reasonable fees and disbursements of one counsel for any
underwriters or Holders in connection with blue sky qualification of any of the
Exchange Securities or Registrable Securities and any filings with the NASD),
(iii) all expenses of any Persons selected by the Issuers in preparing or
assisting in preparing, word processing, printing and distributing any
Registration Statement, any Prospectus, any amendments or supplements thereto,
any underwriting agreements, securities sales agreements and other documents

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relating to the performance of and compliance with this Agreement, (iv) all fees
and expenses incurred in connection with the listing, if any, of any of the
Registrable Securities on any securities exchange or exchanges, (v) all rating
agency fees, (vi) the fees and disbursements of counsel for the Company and of
the independent public accountants of the Company, including the expenses of any
special audits or "cold comfort" letters required by or incident to such
performance and compliance, (vii) the fees and expenses of the Trustee, and any
escrow agent or custodian, (viii) the reasonable fees and expenses of the
Initial Purchasers in connection with the Exchange Offer, including the
reasonable fees and expenses of counsel to the Initial Purchasers in connection
therewith, (ix) the reasonable fees and disbursements of Cahill Gordon & Reindel
LLP, special counsel representing the Holders of Registrable Securities and (x)
any fees and disbursements of the underwriters customarily required to be paid
by issuers or sellers of securities and the fees and expenses of any special
experts retained by the Company in connection with any Registration Statement,
but excluding underwriting discounts and commissions and transfer taxes, if any,
relating to the sale or disposition of Registrable Securities by a Holder.

                  "Registration Statement" shall mean any registration statement
of the Company which covers any of the Exchange Securities or Registrable
Securities pursuant to the provisions of this Agreement, and all amendments and
supplements to any such Registration Statement, including post-effective
amendments, in each case including the Prospectus contained therein, all
exhibits thereto and all material incorporated by reference therein.

                  "SEC" shall mean the Securities and Exchange Commission or any
successor agency or government body performing the functions currently performed
by the United States Securities and Exchange Commission.

                  "Shelf Registration" shall mean a registration effected
pursuant to Section 2.2 hereof.

                  "Shelf Registration Statement" shall mean a "shelf"
registration statement of the Company pursuant to the provisions of Section 2.2
of this Agreement which covers all of the Registrable Securities or all of the
Private Exchange Securities on an appropriate form under Rule 415 under the 1933
Act, or any similar rule that may be adopted by the SEC, and all amendments and
supplements to such registration statement, including post-effective amendments,
in each case including the Prospectus contained therein, all exhibits thereto
and all material incorporated by reference therein.

                  "Trustee" shall mean the trustee with respect to the
Securities under the Indenture.

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                  2. Registration Under the 1933 Act.

                  2.1 Exchange Offer. To the extent not prohibited by any
applicable law or applicable policy of the SEC, the Issuers shall, for the
benefit of the Holders, at the Company's cost, (A) prepare and, as soon as
practicable but not later than 90 days following the Closing Date, file with the
SEC an Exchange Offer Registration Statement on an appropriate form under the
1933 Act with respect to a proposed Exchange Offer and the issuance and delivery
to the Holders, in exchange for the Registrable Securities (other than Private
Exchange Securities), of a like principal amount of Exchange Securities, (B) use
their reasonable best efforts to cause the Exchange Offer Registration Statement
to be declared effective under the 1933 Act within 180 days of the Closing Date,
(C) use their reasonable best efforts to keep the Exchange Offer Registration
Statement effective until the closing of the Exchange Offer and (D) use their
best efforts to cause the Exchange Offer to be consummated not later than 210
days following the Closing Date. The Exchange Securities will be issued under
the Indenture. Upon the effectiveness of the Exchange Offer Registration
Statement, the Issuers shall promptly commence the Exchange Offer, it being the
objective of such Exchange Offer to enable each Holder eligible and electing to
exchange Registrable Securities for Exchange Securities (assuming that such
Holder (a) is not an affiliate of any Issuer within the meaning of Rule 405
under the 1933 Act, (b) is not a broker-dealer tendering Registrable Securities
acquired directly from an Issuer (or an Affiliate of such Issuer) for its own
account, (c) acquired the Exchange Securities in the ordinary course of such
Holder's business and (d) has no arrangements or understandings with any Person
to participate in the Exchange Offer for the purpose of distributing the
Exchange Securities) to transfer such Exchange Securities from and after their
receipt without any limitations or restrictions under the 1933 Act and under
state securities or blue sky laws.

                  In connection with the Exchange Offer, the Issuers shall:

                  (a) mail as promptly as practicable to each Holder a copy of
the Prospectus forming part of the Exchange Offer Registration Statement,
together with an appropriate letter of transmittal and related documents;

                  (b) keep the Exchange Offer open for acceptance for a period
of not less than 30 calendar days after the date notice thereof is mailed to the
Holders (or longer if required by applicable law) (such period referred to
herein as the "Exchange Period");

                  (c) utilize the services of the Depositary for the Exchange
Offer;

                  (d) permit Holders to withdraw tendered Registrable Securities
at any time prior to 5:00 p.m. (Eastern Time), on the last business day of the
Exchange Period, by sending to the institution specified in the notice, a
telegram, telex, facsimile transmission or letter setting forth the name of such
Holder, the principal amount of Registrable Securities delivered for exchange,
and a statement that such Holder is withdrawing such Holder's election to have
such Securities exchanged;

                  (e) notify each Holder that any Registrable Security not
tendered will remain outstanding and continue to accrue interest, but will not
retain any rights under this Agreement (except in the case of the Initial
Purchasers and Participating Broker-Dealers as provided herein); and

                  (f) otherwise comply in all respects with all applicable laws
relating to the Exchange Offer.

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                  If, prior to consummation of the Exchange Offer, the Initial
Purchasers hold any Securities acquired by them and having the status of an
unsold allotment in the initial distribution, the Company upon the request of
any Initial Purchaser shall, to the extent not prohibited by any applicable law
or any applicable policy of the SEC, simultaneously with the delivery of the
Exchange Securities in the Exchange Offer, issue and deliver to such Initial
Purchaser in exchange (the "Private Exchange") for the Securities held by such
Initial Purchaser, a like principal amount of debt securities of the Company on
a senior basis, that are identical (except that such securities shall bear
appropriate transfer restrictions) to the Exchange Securities (the "Private
Exchange Securities").

                  The Exchange Securities and the Private Exchange Securities
shall be issued under (i) the Indenture or (ii) an indenture identical in all
material respects to the Indenture and which, in either case, has been qualified
under the Trust Indenture Act of 1939, as amended (the "TIA"), or is exempt from
such qualification and shall provide that the Exchange Securities shall not be
subject to the transfer restrictions set forth in the Indenture but that the
Private Exchange Securities shall be subject to such transfer restrictions. The
Indenture or such indenture shall provide that the Exchange Securities, the
Private Exchange Securities and the Securities shall vote and consent together
on all matters as one class and that none of the Exchange Securities, the
Private Exchange Securities or the Securities will have the right to vote or
consent as a separate class on any matter. The Private Exchange Securities shall
be of the same series as and the Company shall use all commercially reasonable
efforts to have the Private Exchange Securities bear the same CUSIP number as
the Exchange Securities. The Company shall not have any liability under this
Agreement solely as a result of such Private Exchange Securities not bearing the
same CUSIP number as the Exchange Securities.

                  As soon as practicable after the close of the Exchange Offer
and/or the Private Exchange, as the case may be, the Issuers shall:

                  (i) accept for exchange all Registrable Securities duly
         tendered and not validly withdrawn pursuant to the Exchange Offer in
         accordance with the terms of the Exchange Offer Registration Statement
         and the letter of transmittal which shall be an exhibit thereto;

                  (ii) accept for exchange all Securities properly tendered
         pursuant to the Private Exchange;

                  (iii) deliver, or cause to be delivered, to the Trustee for
         cancellation all Registrable Securities so accepted for exchange; and

                  (iv) cause the Trustee promptly to authenticate and deliver
         Exchange Securities or Private Exchange Securities, as the case may be,
         to each Holder of Registrable Securities so accepted for exchange in a
         principal amount equal to the principal amount of the Registrable
         Securities of such Holder so accepted for exchange.

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                  Interest on each Exchange Security and Private Exchange
Security will accrue from the last date on which interest was paid on the
Registrable Securities surrendered in exchange therefor or, if no interest has
been paid on the Registrable Securities, from the date of original issuance. The
Exchange Offer and the Private Exchange shall not be subject to any conditions,
other than (i) that, in the reasonable opinion of counsel, the Exchange Offer or
the Private Exchange, or the making of any exchange by a Holder, does not
violate applicable law or any applicable interpretation of the staff of the SEC,
(ii) the due tendering of Registrable Securities in accordance with the Exchange
Offer and the Private Exchange, (iii) that each Holder of Registrable Securities
exchanged in the Exchange Offer shall have represented that all Exchange
Securities to be received by it shall be acquired in the ordinary course of its
business and that at the time of the consummation of the Exchange Offer it shall
have no arrangement or understanding with any person to participate in the
distribution (within the meaning of the 1933 Act) of the Exchange Securities and
shall have made such other representations as may be reasonably necessary under
applicable SEC rules, regulations or interpretations to render the use of Form
S-4 or other appropriate form under the 1933 Act available and (iv) that no
action or proceeding shall have been instituted or threatened in any court or by
or before any governmental agency with respect to the Exchange Offer or the
Private Exchange which, in the Issuers' judgment, would reasonably be expected
to impair the ability of the Issuers to proceed with the Exchange Offer or the
Private Exchange. The Company shall inform the Initial Purchasers of the names
and addresses of the Holders to whom the Exchange Offer is made, and the Initial
Purchasers shall have the right to contact such Holders and otherwise facilitate
the tender of Registrable Securities in the Exchange Offer.

                  2.2 Shelf Registration. (i) If, because of any changes in law,
SEC rules or regulations or applicable interpretations thereof by the staff of
the SEC, the Company is not permitted to effect the Exchange Offer as
contemplated by Section 2.1 hereof, (ii) if for any other reason the Exchange
Offer Registration Statement is not declared effective within 180 days following
the original issue of the Registrable Securities or the Exchange Offer is not
consummated within 210 days after the original issue of the Registrable
Securities, (iii) upon the request of any of the Initial Purchasers, (iv) if any
Holder of Securities notifies the Company within twenty (20) business days after
the commencement of the Exchange Offer that (A) due to a change in applicable
law or SEC policy it is not entitled to participate in the Exchange Offer, (B)
due to a change in applicable law or SEC policy it may not resell the Exchange
Securities to be acquired by it in the Exchange Offer to the public without
delivering a prospectus and the prospectus contained in the Exchange Offer
Registration Statement is not appropriate or available for such resales by such
Holder or (C) it is a broker-dealer and owns Securities acquired directly from
the Company or an affiliate of the Company or (v) if the Holders of a majority
of the Securities may not resell the Exchange Securities to be acquired by them
in the Exchange Offer to the public without restriction under the Securities Act
and without restriction under applicable blue sky or state securities laws, then
in case of each of clauses (i) through (v) the Issuers shall, at their own cost:

                  (a) As promptly as practicable, file with the SEC, and
         thereafter shall use their best efforts to cause to be declared
         effective as promptly as practicable but no later than 210 days after
         the original issue of the Registrable Securities, a Shelf Registration
         Statement relating to the offer and sale of the Registrable Securities
         by the Holders from time to time in accordance with the methods of
         distribution elected by the Majority Holders participating in the Shelf
         Registration and set forth in such Shelf Registration Statement.

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                  (b) Use their reasonable best efforts to keep the Shelf
         Registration Statement continuously effective in order to permit the
         Prospectus forming part thereof to be usable by Holders for a period of
         two years from the date the Shelf Registration Statement is declared
         effective by the SEC, or for such shorter period that will terminate
         when all Registrable Securities covered by the Shelf Registration
         Statement have been sold pursuant to the Shelf Registration Statement
         or cease to be outstanding or otherwise to be Registrable Securities
         (the "Effectiveness Period"); provided, however, that the Effectiveness
         Period in respect of the Shelf Registration Statement shall be extended
         to the extent required to permit dealers to comply with the applicable
         prospectus delivery requirements of Rule 174 under the 1933 Act and as
         otherwise provided herein.

                  (c) Notwithstanding any other provisions hereof, use their
         reasonable best efforts to ensure that (i) any Shelf Registration
         Statement and any amendment thereto and any Prospectus forming part
         thereof and any supplement thereto complies in all material respects
         with the 1933 Act and the rules and regulations thereunder, (ii) any
         Shelf Registration Statement and any amendment thereto does not, when
         it becomes effective, contain an untrue statement of a material fact or
         omit to state a material fact required to be stated therein or
         necessary to make the statements therein not misleading and (iii) any
         Prospectus forming part of any Shelf Registration Statement, and any
         supplement to such Prospectus (as amended or supplemented from time to
         time), does not include an untrue statement of a material fact or omit
         to state a material fact necessary in order to make the statements, in
         light of the circumstances under which they were made, not misleading.

                  The Company shall not permit any securities other than
Registrable Securities to be included in the Shelf Registration Statement. The
Company further agrees, if necessary, to supplement or amend the Shelf
Registration Statement, as required by Section 3(b) below, and to furnish to the
Holders of Registrable Securities copies of any such supplement or amendment
promptly after its being used or filed with the SEC.

                  No Holder of Registrable Securities may include any of its
Registrable Securities in any Shelf Registration pursuant to this Agreement
unless and until such Holder furnishes to the Company in writing such
information as the Company may, after conferring with counsel with regard to
information relating to Holders that would be required by the SEC to be included
in such Shelf Registration or Prospectus included therein, reasonably request
for inclusion in any Shelf Registration Statement or Prospectus included
therein. Each Holder as to which any Shelf Registration is being effected agrees
to furnish to the Company all information with respect to such Holder reasonably
necessary to make any information previously furnished to the Company by such
Holder not materially misleading.

                  2.3 Expenses. The Company shall pay all Registration Expenses
in connection with the registration pursuant to Section 2.1 or 2.2. Each Holder
shall pay all underwriting discounts and commissions and transfer taxes, if any,
relating to the sale or disposition of such Holder's Registrable Securities
pursuant to the Shelf Registration Statement.

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                  2.4 Effectiveness. (a) The Issuers will be deemed not have
used its best efforts to cause the Exchange Offer Registration Statement or the
Shelf Registration Statement, as the case may be, to become, or to remain,
effective during the requisite period if they voluntarily take any action that
would, or omit to take any action which omission would, result in any such
Registration Statement not being declared effective or in the Holders of
Registrable Securities covered thereby not being able to exchange or offer and
sell such Registrable Securities during that period as and to the extent
contemplated hereby, unless such action is required by applicable law.

                  (b) An Exchange Offer Registration Statement pursuant to
Section 2.1 hereof or a Shelf Registration Statement pursuant to Section 2.2
hereof will not be deemed to have become effective unless it has been declared
effective by the SEC; provided, however, that if, after it has been declared
effective, the offering of Registrable Securities pursuant to an Exchange Offer
Registration Statement or a Shelf Registration Statement is interfered with by
any stop order, injunction or other order or requirement of the SEC or any other
governmental agency or court, such Registration Statement will be deemed not to
have become effective during the period of such interference, until the offering
of Registrable Securities pursuant to such Registration Statement may legally
resume.

                  2.5 Interest. The Indenture executed in connection with the
Securities will provide that in the event that either (a) the Exchange Offer
Registration Statement is not filed with the Commission on or prior to the 90th
calendar day following the date of original issue of the Securities, (b) the
Exchange Offer Registration Statement has not been declared effective on or
prior to the 180th calendar day following the date of original issue of the
Securities or (c) the Exchange Offer is not consummated or a Shelf Registration
Statement is not declared effective, in either case, on or prior to the 210th
calendar day following the date of original issue of the Securities (each such
event referred to in clauses (a) through (c) above, a "Registration Default"),
the interest rate borne by the Securities shall be increased ("Additional
Interest") by one-half of one percent (0.50%) per annum upon the occurrence of
each Registration Default, which rate will increase by one half of one percent
(0.50%) each 90-day period that such Additional Interest continues to accrue
under any such circumstance, provided that the maximum aggregate increase in the
interest rate will in no event exceed two percent (2%) per annum. Following the
cure of all Registration Defaults the accrual of Additional Interest will cease
and the interest rate will revert to the original rate.

                  If the Shelf Registration Statement is unusable by the Holders
for any reason, and the aggregate number of days in any consecutive twelve-month
period for which the Shelf Registration Statement shall not be usable exceeds 30
days in the aggregate, then the interest rate borne by the Securities will be
increased by 0.50% per annum of the principal amount of the Securities for the
first 90-day period (or portion thereof) beginning on the 31st such date that
such Shelf Registration Statement ceases to be usable, which rate shall be
increased by an additional 0.50% per annum of the principal amount of the
Securities at the beginning of each subsequent 90-day period, provided that the
maximum aggregate increase in the interest rate will in no event exceed two
percent (2%) per annum. Any amounts payable under this paragraph shall also be
deemed "Additional Interest" for purposes of this Agreement. Upon the Shelf
Registration Statement once again becoming usable, the interest rate borne by
the Securities will be reduced to the original interest rate if the Company is
otherwise in compliance with this Agreement at such time. Additional Interest
shall be computed based on the actual number of days elapsed in each 90-day
period in which the Shelf Registration Statement is unusable.

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                  The Company shall notify the Trustee within three business
days after each and every date on which an event occurs in respect of which
Additional Interest is required to be paid (an "Event Date"). Additional
Interest shall be paid by depositing with the Trustee, in trust, for the benefit
of the Holders of Registrable Securities, on or before the applicable semiannual
interest payment date, immediately available funds in sums sufficient to pay the
Additional Interest then due. The Additional Interest due shall be payable on
each interest payment date to the record Holder of Securities entitled to
receive the interest payment to be paid on such date as set forth in the
Indenture. Each obligation to pay Additional Interest shall be deemed to accrue
from and including the day following the applicable Event Date.

                  Notwithstanding anything to the contrary in this Section 2.5,
the Company shall not be required to pay Additional Interest to a Holder of
Registrable Securities if the applicable Registration Default was the direct
result of a Holder failure to comply with its obligations to make the
representations set forth in Section 2.1 or failed to provide the information
reasonably required to be provided by it, if any, pursuant to Section 2.2.

                  3. Registration Procedures. In connection with the obligations
of the Issuers with respect to Registration Statements pursuant to Sections 2.1
and 2.2 hereof, the Issuers shall:

                  (a) prepare and file with the SEC a Registration Statement,
         within the relevant time period specified in Section 2, on the
         appropriate form under the 1933 Act, which form (i) shall be selected
         by the Issuers, (ii) shall, in the case of a Shelf Registration, be
         available for the sale of the Registrable Securities by the selling
         Holders thereof, (iii) shall comply as to form in all material respects
         with the requirements of the applicable form and include or incorporate
         by reference all financial statements required by the SEC to be filed
         therewith or incorporated by reference therein, and (iv) shall comply
         in all respects with the requirements of Regulation S-T under the 1933
         Act, and use their best efforts to cause such Registration Statement to
         become effective and remain effective in accordance with Section 2
         hereof;

                  (b) prepare and file with the SEC such amendments and
         post-effective amendments to each Registration Statement as may be
         necessary under applicable law to keep such Registration Statement
         effective for the applicable period; and cause each Prospectus to be
         supplemented by any required prospectus supplement, and as so
         supplemented to be filed pursuant to Rule 424 (or any similar provision
         then in force) under the 1933 Act and comply with the provisions of the
         1933 Act, the 1934 Act and the rules and regulations thereunder
         applicable to them with respect to the disposition of all securities
         covered by each Registration Statement during the applicable period in
         accordance with the intended method or methods of distribution by the
         selling Holders thereof (including sales by any Participating
         Broker-Dealer);

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                  (c) in the case of a Shelf Registration, (i) notify each
         Holder of Registrable Securities, at least five business days prior to
         filing, that a Shelf Registration Statement with respect to the
         Registrable Securities is being filed and advising such Holders that
         the distribution of Registrable Securities will be made in accordance
         with the method selected by the Majority Holders participating in the
         Shelf Registration; (ii) furnish to each Holder of Registrable
         Securities and to each underwriter of an underwritten offering of
         Registrable Securities, if any, without charge, as many copies of each
         Prospectus, including each preliminary Prospectus, and any amendment or
         supplement thereto and such other documents as such Holder or
         underwriter may reasonably request, including financial statements and
         schedules and, if the Holder so requests, all exhibits in order to
         facilitate the public sale or other disposition of the Registrable
         Securities; and (iii) hereby consent to the use of the Prospectus or
         any amendment or supplement thereto by each of the selling Holders of
         Registrable Securities in connection with the offering and sale of the
         Registrable Securities covered by the Prospectus or any amendment or
         supplement thereto;

                  (d) use its reasonable best efforts to register or qualify the
         Registrable Securities under all applicable state securities or "blue
         sky" laws of such jurisdictions as any Holder of Registrable Securities
         covered by a Registration Statement and each underwriter of an
         underwritten offering of Registrable Securities shall reasonably
         request by the time the applicable Registration Statement is declared
         effective by the SEC, and do any and all other acts and things which
         may be reasonably necessary or advisable to enable each such Holder and
         underwriter to consummate the disposition in each such jurisdiction of
         such Registrable Securities owned by such Holder; provided, however,
         that no Issuer shall be required to (i) qualify as a foreign
         corporation or as a dealer in securities in any jurisdiction where it
         would not otherwise be required to qualify but for this Section 3(d),
         or (ii) take any action which would subject it to general service of
         process or taxation in any such jurisdiction where it is not then so
         subject;

                  (e) notify promptly each Holder of Registrable Securities
         under a Shelf Registration or any Participating Broker-Dealer who has
         notified the Company that it is utilizing the Exchange Offer
         Registration Statement as provided in paragraph (f) below and, if
         requested by such Holder or Participating Broker-Dealer, confirm such
         advice in writing promptly (i) when a Registration Statement has become
         effective and when any post-effective amendments and supplements
         thereto become effective, (ii) of any request by the SEC or any state
         securities authority for post-effective amendments and supplements to a
         Registration Statement and Prospectus or for additional information
         after the Registration Statement has become effective, (iii) of the
         issuance by the SEC or any state securities authority of any stop order
         suspending the effectiveness of a Registration Statement or the
         initiation of any proceedings for that purpose, (iv) in the case of a
         Shelf Registration, if, between the effective date of a Registration
         Statement and the closing of any sale of Registrable Securities covered
         thereby, the representations and warranties of the Company contained in
         any underwriting agreement, securities sales agreement or other similar
         agreement, if any, relating to the offering cease to be true and
         correct in all material respects, (v) of the happening of any event or
         the discovery of any facts during the period a Shelf Registration
         Statement is effective which makes any statement made in such
         Registration Statement or the related Prospectus untrue in any material
         respect or which requires the making of any changes in such
         Registration Statement or Prospectus in order to make the statements
         therein not misleading, (vi) of the receipt by any Issuer of any
         notification with respect to the suspension of the qualification of the
         Registrable Securities or the Exchange Securities, as the case may be,
         for sale in any jurisdiction or the initiation or threatening of any
         proceeding for such purpose and (vii) of any determination by the
         Company that a post-effective amendment to such Registration Statement
         would be appropriate;

                                      -11-
<PAGE>

                  (f) (A) in the case of the Exchange Offer Registration
         Statement (i) include in the Exchange Offer Registration Statement a
         section entitled "Plan of Distribution" which section shall be
         reasonably acceptable to the Representatives on behalf of the
         Participating Broker-Dealers, and which shall contain a summary
         statement of the positions taken or policies made by the staff of the
         SEC with respect to the potential "underwriter" status of any
         broker-dealer that holds Registrable Securities acquired for its own
         account as a result of market-making activities or other trading
         activities and that will be the beneficial owner (as defined in Rule
         13d-3 under the Exchange Act) of Exchange Securities to be received by
         such broker-dealer in the Exchange Offer, whether such positions or
         policies have been publicly disseminated by the staff of the SEC or
         such positions or policies, in the reasonable judgment of the
         Representatives on behalf of the Participating Broker-Dealers and its
         counsel, represent the prevailing views of the staff of the SEC,
         including a statement that any such broker-dealer who receives Exchange
         Securities for Registrable Securities pursuant to the Exchange Offer
         may be deemed a statutory underwriter and must deliver a prospectus
         meeting the requirements of the 1933 Act in connection with any resale
         of such Exchange Securities, (ii) furnish to each Participating
         Broker-Dealer who has delivered to the Company the notice referred to
         in Section 3(e), without charge, as many copies of each Prospectus
         included in the Exchange Offer Registration Statement, including any
         preliminary prospectus, and any amendment or supplement thereto, as
         such Participating Broker-Dealer may reasonably request, (iii) hereby
         consent to the use of the Prospectus forming part of the Exchange Offer
         Registration Statement or any amendment or supplement thereto, by any
         Person subject to the prospectus delivery requirements of the SEC,
         including all Participating Broker-Dealers, in connection with the sale
         or transfer of the Exchange Securities covered by the Prospectus or any
         amendment or supplement thereto, and (iv) include in the transmittal
         letter or similar documentation to be executed by an exchange offeree
         in order to participate in the Exchange Offer (x) the following
         provision:

                  "If the exchange offeree is a broker-dealer holding
                  Registrable Securities acquired for its own account as a
                  result of market-making activities or other trading
                  activities, it will deliver a prospectus meeting the
                  requirements of the 1933 Act in connection with any resale of
                  Exchange Securities received in respect of such Registrable
                  Securities pursuant to the Exchange Offer;" and

                                      -12-
<PAGE>

         (y) a statement to the effect that by a broker-dealer making the
         acknowledgment described in clause (x) and by delivering a Prospectus
         in connection with the exchange of Registrable Securities, the
         broker-dealer will not be deemed to admit that it is an underwriter
         within the meaning of the 1933 Act; and

                  (B) in the case of any Exchange Offer Registration Statement,
         the Issuers, after the Company has received the notice of any
         Participating Broker-Dealer referred to in Section 3(e), agree to
         deliver to the Initial Purchasers on behalf of the Participating
         Broker-Dealers upon the effectiveness of the Exchange Offer
         Registration Statement (i) an opinion of counsel or opinions of counsel
         substantially in the form attached hereto as Exhibit A, (ii) officers'
         certificates substantially in the form customarily delivered in a
         public offering of debt securities and (iii) a comfort letter or
         comfort letters in customary form to the extent permitted by Statement
         on Auditing Standards No. 100 of the American Institute of Certified
         Public Accountants (or if such a comfort letter is not permitted, an
         agreed upon procedures letter in customary form) from the Issuers'
         independent certified public accountants (and, if necessary, any other
         independent certified public accountants of any subsidiary of any
         Issuer or of any business acquired by any Issuer for which financial
         statements are, or are required to be, included in the Registration
         Statement) at least as broad in scope and coverage as the comfort
         letter or comfort letters delivered to the Initial Purchasers in
         connection with the initial sale of the Securities to the Initial
         Purchasers;

                  (g) (i) in the case of an Exchange Offer, furnish counsel for
         the Initial Purchasers and (ii) in the case of a Shelf Registration,
         furnish counsel for the Holders of Registrable Securities copies of any
         comment letters received from the SEC or any other request by the SEC
         or any state securities authority for amendments or supplements to a
         Registration Statement and Prospectus or for additional information;

                  (h) make every reasonable effort to obtain the withdrawal of
         any order suspending the effectiveness of a Registration Statement at
         the earliest possible moment;

                  (i) in the case of a Shelf Registration, furnish to each
         Holder of Registrable Securities, and each underwriter, if any, without
         charge, at least one conformed copy of each Registration Statement and
         any post-effective amendment thereto, including financial statements
         and schedules (without documents incorporated therein by reference and
         all exhibits thereto, unless requested);

                  (j) in the case of a Shelf Registration, cooperate with the
         selling Holders of Registrable Securities to facilitate the timely
         preparation and delivery of certificates representing Registrable
         Securities to be sold and not bearing any restrictive legends; and
         enable such Registrable Securities to be in such denominations
         (consistent with the provisions of the Indenture) and registered in
         such names as the selling Holders or the underwriters, if any, may
         reasonably request at least three business days prior to the closing of
         any sale of Registrable Securities;

                                      -13-
<PAGE>

                  (k) in the case of a Shelf Registration, upon the occurrence
         of any event or the discovery of any facts, each as contemplated by
         Sections 3(e)(v) and 3(e)(vi) hereof, as promptly as practicable after
         the occurrence of such an event, use their best efforts to prepare a
         supplement or post-effective amendment to the Registration Statement or
         the related Prospectus or any document incorporated therein by
         reference or file any other required document so that, as thereafter
         delivered to the purchasers of the Registrable Securities or
         Participating Broker-Dealers, such Prospectus will not contain at the
         time of such delivery any untrue statement of a material fact or omit
         to state a material fact necessary to make the statements therein, in
         light of the circumstances under which they were made, not misleading
         or will remain so qualified. At such time as such public disclosure is
         otherwise made or the Issuers determine that such disclosure is not
         necessary, in each case to correct any misstatement of a material fact
         or to include any omitted material fact, the Issuers agree promptly to
         notify each Holder of such determination and to furnish each Holder
         such number of copies of the Prospectus as amended or supplemented, as
         such Holder may reasonably request;

                  (l) in the case of a Shelf Registration, a reasonable time
         prior to the filing of any Registration Statement, any Prospectus, any
         amendment to a Registration Statement or amendment or supplement to a
         Prospectus or any document which is to be incorporated by reference
         into a Registration Statement or a Prospectus after initial filing of a
         Registration Statement, provide copies of such document to the Initial
         Purchasers on behalf of such Holders; and make representatives of the
         Company as shall be reasonably requested by the Holders of Registrable
         Securities, or the Initial Purchasers on behalf of such Holders,
         available for discussion of such document;

                  (m) obtain a CUSIP number for all Exchange Securities, Private
         Exchange Securities or Registrable Securities, as the case may be, not
         later than the effective date of a Registration Statement, and provide
         the Trustee with printed certificates for the Exchange Securities,
         Private Exchange Securities or the Registrable Securities, as the case
         may be, in a form eligible for deposit with the Depositary;

                  (n) (i) cause the Indenture to be qualified under the TIA in
         connection with the registration of the Exchange Securities or
         Registrable Securities, as the case may be, (ii) cooperate with the
         Trustee and the Holders to effect such changes to the Indenture as may
         be required for the Indenture to be so qualified in accordance with the
         terms of the TIA and (iii) execute, and use its reasonable best efforts
         to cause the Trustee to execute, all documents as may be required to
         effect such changes, and all other forms and documents required to be
         filed with the SEC to enable the Indenture to be so qualified in a
         timely manner;

                  (o) in the case of a Shelf Registration, enter into agreements
         (including underwriting agreements) and take all other customary and
         appropriate actions in order to expedite or facilitate the disposition
         of such Registrable Securities and in such connection whether or not an
         underwriting agreement is entered into and whether or not the
         registration is an underwritten registration:

                                      -14-
<PAGE>

                  (i) make such representations and warranties to the Holders of
         such Registrable Securities and the underwriters, if any, in form,
         substance and scope as are customarily made by issuers to underwriters
         in similar underwritten offerings as may be reasonably requested by
         them;

                  (ii) obtain opinions of counsel to the Issuers and updates
         thereof (which counsel and opinions (in form, scope and substance)
         shall be reasonably satisfactory to the managing underwriters, if any,
         and the holders of a majority in principal amount of the Registrable
         Securities being sold) addressed to each selling Holder and the
         underwriters, if any, covering the matters customarily covered in
         opinions requested in sales of securities or underwritten offerings and
         such other matters as may be reasonably requested by such Holders and
         underwriters;

                  (iii) obtain "cold comfort" letters and updates thereof from
         the Issuers' independent certified public accountants (and, if
         necessary, any other independent certified public accountants of any
         subsidiary of any Issuer or of any business acquired by any Issuer for
         which financial statements are, or are required to be, included in the
         Registration Statement) addressed to the underwriters, if any, and use
         reasonable efforts to have such letter addressed to the selling Holders
         of Registrable Securities (to the extent consistent with Statement on
         Auditing Standards No. 72 of the American Institute of Certified Public
         Accounts), such letters to be in customary form and covering matters of
         the type customarily covered in "cold comfort" letters to underwriters
         in connection with similar underwritten offerings;

                  (iv) enter into a securities sales agreement with the Holders
         and an agent of the Holders providing for, among other things, the
         appointment of such agent for the selling Holders for the purpose of
         soliciting purchases of Registrable Securities, which agreement shall
         be in form, substance and scope customary for similar offerings;

                  (v) if an underwriting agreement is entered into, cause the
         same to set forth indemnification provisions and procedures
         substantially equivalent to the indemnification provisions and
         procedures set forth in Section 4 hereof with respect to the
         underwriters and all other parties to be indemnified pursuant to said
         Section or, at the request of any underwriters, in the form customarily
         provided to such underwriters in similar types of transactions; and

                  (vi) deliver such documents and certificates as may be
         reasonably requested and as are customarily delivered in similar
         offerings to the Holders of a majority in principal amount of the
         Registrable Securities being sold and the managing underwriters, if
         any.

                                      -15-
<PAGE>

                  The above shall be done at (i) the effectiveness of such
         Registration Statement (and each post-effective amendment thereto) and
         (ii) each closing under any underwriting or similar agreement as and to
         the extent required thereunder;

                  (p) in the case of a Shelf Registration or if a Prospectus is
         required to be delivered by any Participating Broker-Dealer in the case
         of an Exchange Offer, make available for inspection by representatives
         of the Holders of the Registrable Securities, any underwriters
         participating in any disposition pursuant to a Shelf Registration
         Statement, any Participating Broker-Dealer and any counsel or
         accountant retained by any of the foregoing, all financial and other
         records, pertinent corporate documents and properties of the Company
         reasonably requested by any such persons, and cause the respective
         officers, directors, employees, and any other agents of the Company to
         supply all information reasonably requested by any such representative,
         underwriter, special counsel or accountant in connection with a
         Registration Statement, and make such representatives of the Company
         available for discussion of such documents as shall be reasonably
         requested by the Initial Purchasers;

                  (q) (i) in the case of an Exchange Offer Registration
         Statement, a reasonable time prior to the filing of any Exchange Offer
         Registration Statement, any Prospectus forming a part thereof, any
         amendment to an Exchange Offer Registration Statement or amendment or
         supplement to such Prospectus, provide copies of such document to the
         Initial Purchasers and to counsel to the Holders of Registrable
         Securities and make such changes in any such document prior to the
         filing thereof as the Initial Purchasers or counsel to the Holders of
         Registrable Securities may reasonably request and, except as otherwise
         required by applicable law, not file any such document in a form to
         which the Initial Purchasers on behalf of the Holders of Registrable
         Securities and counsel to the Holders of Registrable Securities shall
         not have previously been advised and furnished a copy of or to which
         the Initial Purchasers on behalf of the Holders of Registrable
         Securities or counsel to the Holders of Registrable Securities shall
         reasonably object, and make the representatives of the Company
         available for discussion of such documents as shall be reasonably
         requested by the Initial Purchasers; and

                  (ii) in the case of a Shelf Registration, a reasonable time
         prior to filing any Shelf Registration Statement, any Prospectus
         forming a part thereof, any amendment to such Shelf Registration
         Statement or amendment or supplement to such Prospectus, provide copies
         of such document to the Holders of Registrable Securities, to the
         Initial Purchasers, to counsel for the Holders and to the underwriter
         or underwriters of an underwritten offering of Registrable Securities,
         if any, make such changes in any such document prior to the filing
         thereof as the Initial Purchasers, the counsel to the Holders or the
         underwriter or underwriters reasonably request and not file any such
         document in a form to which the Majority Holders, the Initial
         Purchasers on behalf of the Holders of Registrable Securities, counsel
         for the Holders of Registrable Securities or any underwriter shall not
         have previously been advised and furnished a copy of or to which the
         Majority Holders, the Initial Purchasers of behalf of the Holders of
         Registrable Securities, counsel to the Holders of Registrable
         Securities or any underwriter shall reasonably object, and make the
         representatives of the Company available for discussion of such
         document as shall be reasonably requested by the Holders of Registrable
         Securities, the Initial Purchasers on behalf of such Holders, counsel
         for the Holders of Registrable Securities or any underwriter;

                                      -16-
<PAGE>

                  (r) in the case of a Shelf Registration, use its reasonable
         best efforts to cause all Registrable Securities to be listed on any
         securities exchange on which similar debt securities issued by the
         Company are then listed if requested by the Majority Holders, or if
         requested by the underwriter or underwriters of an underwritten
         offering of Registrable Securities, if any;

                  (s) in the case of a Shelf Registration, use its reasonable
         best efforts to cause the Registrable Securities to be rated by the
         appropriate rating agencies, if so requested by the Majority Holders,
         or if requested by the underwriter or underwriters of an underwritten
         offering of Registrable Securities, if any;

                  (t) otherwise comply with all applicable rules and regulations
         of the SEC and make available to its security holders, as soon as
         reasonably practicable, an earnings statement covering at least 12
         months which shall satisfy the provisions of Section 11(a) of the 1933
         Act and Rule 158 thereunder;

                  (u) cooperate and assist in any filings required to be made
         with the NASD and, in the case of a Shelf Registration, in the
         performance of any due diligence investigation by any underwriter and
         its counsel (including any "qualified independent underwriter" that is
         required to be retained in accordance with the rules and regulations of
         the NASD); and

                  (v) upon consummation of an Exchange Offer or a Private
         Exchange, obtain a customary opinion of counsel to the Company
         addressed to the Trustee for the benefit of all Holders of Registrable
         Securities participating in the Exchange Offer or Private Exchange, and
         which includes an opinion that (i) each Issuer has duly authorized,
         executed and delivered the Exchange Securities and/or Private Exchange
         Securities, as applicable, and the related indenture, and (ii) each of
         the Exchange Securities and related indenture constitute a legal, valid
         and binding obligation of each Issuer, enforceable against such Issuer
         in accordance with its respective terms (with customary exceptions).

                  In the case of a Shelf Registration Statement, the Company may
(as a condition to such Holder's participation in the Shelf Registration)
require each Holder of Registrable Securities to furnish to the Company such
information regarding the Holder and the proposed distribution by such Holder of
such Registrable Securities as the Company may from time to time reasonably
request in writing. The Issuers may exclude from such Shelf Registration
Statement the Registrable Securities of any Holder who fails to furnish such
information within twenty (20) business days after receiving such request and
shall be under no obligation to pay any Additional Interest to such Holder.

                                      -17-
<PAGE>

                  In the case of a Shelf Registration Statement or an Exchange
Offer Registration Statement whereby a Participating Broker-Dealer has notified
the Company that it will be utilizing the Prospectus contained in the Exchange
Offer Registration Statement to sell Exchange Securities, each Holder or
Participating Broker-Dealer agrees that, upon receipt of any notice from the
Company of the happening of any event or the discovery of any facts, each of the
kind described in Section 3(e)(ii), (iii), (v), (vi) or (vii) hereof, such
Holder or Participating Broker-Dealer will forthwith discontinue disposition of
Registrable Securities pursuant to a Registration Statement until such Holder's
receipt of the copies of the supplemented or amended Prospectus contemplated by
Section 3(k) hereof, and, if so directed by the Company, such Holder will
deliver to the Company (at its expense) all copies in such Holder's possession,
other than permanent file copies then in such Holder's possession, of the
Prospectus covering such Registrable Securities current at the time of receipt
of such notice.

                  In the event that the Issuers fail to effect the Exchange
Offer or file any Shelf Registration Statement and maintain the effectiveness of
any Shelf Registration Statement as provided herein, the Issuers shall not file
any Registration Statement with respect to any securities (within the meaning of
Section 2(1) of the 1933 Act) of the Company other than Registrable Securities.

                  If any of the Registrable Securities covered by any Shelf
Registration Statement are to be sold in an underwritten offering, the
underwriter or underwriters and manager or managers that will manage such
offering will be selected by the Majority Holders of such Registrable Securities
included in such offering and shall be acceptable to the Issuers. No Holder of
Registrable Securities may participate in any underwritten registration
hereunder unless such Holder (a) agrees to sell such Holder's Registrable
Securities on the basis provided in any underwriting arrangements approved by
the persons entitled hereunder to approve such arrangements and (b) completes
and executes all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents required under the terms of such underwriting
arrangements.

                  4. Indemnification; Contribution. (a) Each Issuer shall
jointly and severally indemnify and hold harmless the Initial Purchasers, each
Holder, each Participating Broker-Dealer, each Person who participates as an
underwriter (any such Person being an "Underwriter") and each Person, if any,
who controls any Holder or Underwriter within the meaning of Section 15 of the
1933 Act or Section 20 of the 1934 Act as follows:

                  (i) against any and all loss, liability, claim, damage and
         expense whatsoever, as incurred, arising out of any untrue statement or
         alleged untrue statement of a material fact contained in any
         Registration Statement (or any amendment or supplement thereto)
         pursuant to which Exchange Securities or Registrable Securities were
         registered under the 1933 Act, including all documents incorporated
         therein by reference, or the omission or alleged omission therefrom of
         a material fact required to be stated therein or necessary to make the
         statements therein not misleading, or arising out of any untrue
         statement or alleged untrue statement of a material fact contained in
         any Prospectus (or any amendment or supplement thereto) or the omission
         or alleged omission therefrom of a material fact necessary in order to
         make the statements therein, in the light of the circumstances under
         which they were made, not misleading;

                                      -18-
<PAGE>

                  (ii) against any and all loss, liability, claim, damage and
         expense whatsoever, as incurred, to the extent of the aggregate amount
         paid in settlement of any litigation, or any investigation or
         proceeding by any governmental agency or body, commenced or threatened,
         or of any claim whatsoever based upon any such untrue statement or
         omission, or any such alleged untrue statement or omission; provided
         that (subject to Section 4(d) below) any such settlement is effected
         with the written consent of the Company; and

                  (iii) against any and all expense whatsoever, as incurred
         (including the fees and disbursements of counsel chosen by any
         indemnified party), reasonably incurred in investigating, preparing or
         defending against any litigation, or any investigation or proceeding by
         any governmental agency or body, commenced or threatened, or any claim
         whatsoever based upon any such untrue statement or omission, or any
         such alleged untrue statement or omission, to the extent that any such
         expense is not paid under subparagraph (i) or (ii) above;

provided, however, that this indemnity agreement shall not apply to any loss,
liability, claim, damage or expense (i) to the extent arising out of any untrue
statement or omission or alleged untrue statement or omission made in reliance
upon and in conformity with written information furnished to the Company by or
on behalf of the Holder or Underwriter expressly for use in a Registration
Statement (or any amendment thereto) or any Prospectus (or any amendment or
supplement thereto), (ii) resulting from the use of the Prospectus during a
period when the use of such Prospectus has been suspended; provided that the
Holder received prior notice of such suspension in accordance with Section 3
hereof or (iii) resulting from the fact that the Holder sold Registrable
Securities to a person as to whom there was not sent or given prior to the
written confirmation of such sale, a copy of the Prospectus, in any case where
such delivery is required by the 1933 Act.

                  (b) Each Holder severally, but not jointly, agrees to
indemnify and hold harmless the Issuers, the Initial Purchasers, each
Underwriter and the other selling Holders, and each of their respective
directors and officers, and each Person, if any, who controls any Issuer, the
Initial Purchasers, any Underwriter or any other selling Holder within the
meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act, against any
and all loss, liability, claim, damage and expense described in the indemnity
contained in Section 4(a) hereof, as incurred, but only with respect to untrue
statements or omissions, or alleged untrue statements or omissions, made in the
Shelf Registration Statement (or any amendment thereto) or any Prospectus
included therein (or any amendment or supplement thereto) in reliance upon and
in conformity with written information with respect to such Holder furnished to
the Company by or on behalf of such Holder expressly for use in the Shelf
Registration Statement (or any amendment thereto) or such Prospectus (or any
amendment or supplement thereto); provided, however, that no such Holder shall
be liable for any claims hereunder in excess of the amount of net proceeds
received by such Holder from the sale of Registrable Securities pursuant to such
Shelf Registration Statement.

                                      -19-
<PAGE>

                  (c) Each indemnified party shall give notice as promptly as
reasonably practicable to each indemnifying party of any action or proceeding
commenced against it in respect of which indemnity may be sought hereunder, but
failure so to notify an indemnifying party shall not relieve such indemnifying
party from any liability hereunder to the extent it is not materially prejudiced
as a result thereof and in any event shall not relieve it from any liability
which it may have otherwise than on account of this indemnity agreement. An
indemnifying party may participate at its own expense in the defense of such
action; provided, however, that counsel to the indemnifying party shall not
(except with the consent of the indemnified party) also be counsel to the
indemnified party. In no event shall the indemnifying party or parties be liable
for the fees and expenses of more than one counsel (in addition to any local
counsel) separate from their own counsel for all indemnified parties in
connection with any one action or separate but similar or related actions in the
same jurisdiction arising out of the same general allegations or circumstances.
No indemnifying party shall, without the prior written consent of the
indemnified parties, settle or compromise or consent to the entry of any
judgment with respect to any litigation, or any investigation or proceeding by
any governmental agency or body, commenced or threatened, or any claim
whatsoever in respect of which indemnification or contribution could be sought
under this Section 4 (whether or not the indemnified parties are actual or
potential parties thereto), unless such settlement, compromise or consent (i)
includes an unconditional release of each indemnified party from all liability
arising out of such litigation, investigation, proceeding or claim and (ii) does
not include a statement as to or an admission of fault, culpability or a failure
to act by or on behalf of any indemnified party.

                  (d) If at any time an indemnified party shall have requested
an indemnifying party to reimburse the indemnified party for fees and expenses
of counsel, such indemnifying party agrees that it shall be liable for any
settlement of the nature contemplated by Section 4(a)(ii) effected without its
written consent if (i) such settlement is entered into more than 45 days after
receipt by such indemnifying party of the aforesaid request, (ii) such
indemnifying party shall have received notice of the terms of such settlement at
least 30 days prior to such settlement being entered into and (iii) such
indemnifying party shall not have reimbursed such indemnified party for such
fees and expenses of counsel in accordance with such request prior to the date
of such settlement.

                  (e) If the indemnification provided for in this Section 4 is
for any reason unavailable to or insufficient to hold harmless an indemnified
party in respect of any losses, liabilities, claims, damages or expenses
referred to therein, then each indemnifying party shall contribute to the
aggregate amount of such losses, liabilities, claims, damages and expenses
incurred by such indemnified party, as incurred, in such proportion as is
appropriate to reflect the relative fault of the Issuers on the one hand and the
Holders and the Initial Purchasers on the other hand in connection with the
statements or omissions which resulted in such losses, liabilities, claims,
damages or expenses, as well as any other relevant equitable considerations.

                                      -20-
<PAGE>

                  The relative fault of any Issuer on the one hand and the
Holders and the Initial Purchasers on the other hand shall be determined by
reference to, among other things, whether any such untrue or alleged untrue
statement of a material fact or omission or alleged omission to state a material
fact relates to information supplied by such Issuer, the Holders or the Initial
Purchasers and the parties' relative intent, knowledge, access to information
and opportunity to correct or prevent such statement or omission.

                  The Issuers, the Holders and the Initial Purchasers agree that
it would not be just and equitable if contribution pursuant to this Section 4
were determined by pro rata allocation (even if the Initial Purchasers were
treated as one entity for such purpose) or by any other method of allocation
which does not take account of the equitable considerations referred to above in
this Section 4. The aggregate amount of losses, liabilities, claims, damages and
expenses incurred by an indemnified party and referred to above in this Section
4 shall be deemed to include any legal or other expenses reasonably incurred by
such indemnified party in investigating, preparing or defending against any
litigation, or any investigation or proceeding by any governmental agency or
body, commenced or threatened, or any claim whatsoever based upon any such
untrue or alleged untrue statement or omission or alleged omission.

                  Notwithstanding the provisions of this Section 4, no Initial
Purchaser shall be required to contribute any amount in excess of the amount by
which the total price at which the Securities sold by it were offered exceeds
the amount of any damages which such Initial Purchaser has otherwise been
required to pay by reason of such untrue or alleged untrue statement or omission
or alleged omission.

                  No Person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution from
any Person who was not guilty of such fraudulent misrepresentation.

                  For purposes of this Section 4, each Person, if any, who
controls an Initial Purchaser or Holder within the meaning of Section 15 of the
1933 Act or Section 20 of the 1934 Act shall have the same rights to
contribution as such Initial Purchaser or Holder, and each director of any
Issuer, and each Person, if any, who controls such Issuer within the meaning of
Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same
rights to contribution as the Company. The Initial Purchasers' respective
obligations to contribute pursuant to this Section 7 are several in proportion
to the principal amount of Securities set forth opposite their respective names
in Schedule A to the Purchase Agreement and not joint.

                  5. Miscellaneous.

                  5.1 Rule 144 and Rule 144A. For so long as the Company is
subject to the reporting requirements of Section 13 or 15 of the 1934 Act, the
Company covenants that it will file the reports required to be filed by it under
the 1933 Act and Section 13(a) or 15(d) of the 1934 Act and the rules and
regulations adopted by the SEC thereunder. If the Company ceases to be so
required to file such reports, the Company covenants that it will upon the
request of any Holder of Registrable Securities (a) make publicly available such
information as is necessary to permit sales pursuant to Rule 144 under the 1933
Act, (b) deliver such information to a prospective purchaser as is necessary to
permit sales pursuant to Rule 144A under the 1933 Act and it will take such
further action as any Holder of Registrable Securities may reasonably request,
and (c) take such further action that is reasonable in the circumstances, in
each case, to the extent required from time to time to enable such Holder to
sell its Registrable Securities without registration under the 1933 Act within
the limitation of the exemptions provided by (i) Rule 144 under the 1933 Act, as
such Rule may be amended from time to time, (ii) Rule 144A under the 1933 Act,
as such Rule may be amended from time to time, or (iii) any similar rules or
regulations hereafter adopted by the SEC. Upon the request of any Holder of
Registrable Securities, the Company will deliver to such Holder a written
statement as to whether it has complied with such requirements.

                                      -21-
<PAGE>

                  5.2 No Inconsistent Agreements. No Issuer has entered into and
no Issuer will after the date of this Agreement enter into any agreement which
is inconsistent with the rights granted to the Holders of Registrable Securities
in this Agreement or otherwise conflicts with the provisions hereof. The rights
granted to the Holders hereunder do not and will not for the term of this
Agreement in any way conflict with the rights granted to the holders of any
Issuer's other issued and outstanding securities under any such agreements.

                  5.3 Amendments and Waivers. The provisions of this Agreement,
including the provisions of this sentence, may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof
may not be given unless the Issuers have obtained the written consent of Holders
of at least a majority in aggregate principal amount of the outstanding
Registrable Securities affected by such amendment, modification, supplement,
waiver or departure.

                  5.4 Notices. All notices and other communications provided for
or permitted hereunder shall be made in writing by hand delivery, registered
first-class mail, telex, telecopier, or any courier guaranteeing overnight
delivery (a) if to a Holder, at the most current address given by such Holder to
the Company by means of a notice given in accordance with the provisions of this
Section 5.4, which address initially is the address set forth in the Purchase
Agreement with respect to the Initial Purchasers; and (b) if to the Company,
initially at the Company's address set forth in the Purchase Agreement, and
thereafter at such other address of which notice is given in accordance with the
provisions of this Section 5.4.

                  All such notices and communications shall be deemed to have
been duly given: at the time delivered by hand, if personally delivered; two
business days after being deposited in the mail, postage prepaid, if mailed;
when answered back, if telexed; when receipt is acknowledged, if telecopied; and
on the next business day if timely delivered to an air courier guaranteeing
overnight delivery.

                  Copies of all such notices, demands, or other communications
shall be concurrently delivered by the person giving the same to the Trustee
under the Indenture, at the address specified in such Indenture.

                                      -22-
<PAGE>

                  5.5 Successor and Assigns. This Agreement shall inure to the
benefit of and be binding upon the successors, assigns and transferees of each
of the parties, including, without limitation and without the need for an
express assignment, subsequent Holders; provided that nothing herein shall be
deemed to permit any assignment, transfer or other disposition of Registrable
Securities in violation of the terms of the Purchase Agreement or the Indenture.
If any transferee of any Holder shall acquire Registrable Securities, in any
manner, whether by operation of law or otherwise, such Registrable Securities
shall be held subject to all of the terms of this Agreement, and by taking and
holding such Registrable Securities such person shall be conclusively deemed to
have agreed to be bound by and to perform all of the terms and provisions of
this Agreement, including the restrictions on resale set forth in this Agreement
and, if applicable, the Purchase Agreement, and such person shall be entitled to
receive the benefits hereof.

                  5.6 Third Party Beneficiaries. The Initial Purchasers (even if
the Initial Purchasers are not Holders of Registrable Securities) shall be third
party beneficiaries to the agreements made hereunder between the Issuers, on the
one hand, and the Holders, on the other hand, and shall have the right to
enforce such agreements directly to the extent they deem such enforcement
necessary or advisable to protect their rights or the rights of Holders
hereunder. Each Holder of Registrable Securities shall be a third party
beneficiary to the agreements made hereunder between the Issuers, on the one
hand, and the Initial Purchasers, on the other hand, and shall have the right to
enforce such agreements directly to the extent it deems such enforcement
necessary or advisable to protect its rights hereunder.

                  5.7 Specific Enforcement. Without limiting the remedies
available to the Initial Purchasers and the Holders, the Issuers acknowledge
that any failure by any Issuer to comply with its obligations under Sections 2.1
through 2.4 hereof may result in material irreparable injury to the Initial
Purchasers or the Holders for which there is no adequate remedy at law, that it
would not be possible to measure damages for such injuries precisely and that,
in the event of any such failure, the Initial Purchasers or any Holder may
obtain such relief as may be required to specifically enforce any Issuer's
obligations under Sections 2.1 through 2.4 hereof.

                  5.8 Restriction on Resales. Until the expiration of two years
after the original issuance of the Securities and the Guarantees, the Company
and the Guarantors will not, and will cause their "affiliates" (as such term is
defined in Rule 144(a)(1) under the 1933 Act) not to, resell any Securities and
Guarantees which are "restricted securities" (as such term is defined under Rule
144(a)(3) under the 1933 Act) that have been reacquired by any of them and no
such Securities shall be counted in determining whether such consent or approval
was given by the Holders of any required percentage under this Agreement.

                  5.9 Counterparts. This Agreement may be executed in any number
of counterparts and by the parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

                  5.10 Headings. The headings in this Agreement are for
convenience of reference only and shall not limit or otherwise affect the
meaning hereof.

                                      -23-
<PAGE>

                  5.11 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO
THE PRINCIPLES OF CONFLICT OF LAWS THEREOF.

                  5.12 Submission to Jurisdiction; Waiver of Jury Trial. No
proceeding related to this Agreement or the transactions contemplated hereby may
be commenced, prosecuted or continued in any court other than the courts of the
State of New York located in the City and County of New York or in the United
States District Court for the Southern District of New York, which courts shall
have jurisdiction over the adjudication of such matters, and the Company hereby
consent to the jurisdiction of such courts and personal service with respect
thereto. The Company hereby waive all right to trial by jury in any proceeding
(whether based upon contract, tort or otherwise) in any way arising out of or
relating to this Agreement. The Company agrees that a final judgment in any such
proceeding brought in any such court shall be conclusive and binding upon the
Company and may be enforced in any other courts in the jurisdiction of which the
Company are or may be subject, by suit upon such judgment

                  5.13 Severability. In the event that any one or more of the
provisions contained herein, or the application thereof in any circumstance, is
held invalid, illegal or unenforceable, the validity, legality and
enforceability of any such provision in every other respect and of the remaining
provisions contained herein shall not be affected or impaired thereby.

                                      -24-
<PAGE>

                  IN WITNESS WHEREOF, the parties have executed this Agreement
as of the date first above written.

                          GENERAL CABLE CORPORATION

                          By: /s/ Robert J. Siverd
                             --------------------------------
                              Robert J. Siverd
                              Executive Vice President

                          GUARANTORS:

                          GENCA CORPORATION
                          GENERAL CABLE CANADA, LTD.
                          GENERAL CABLE COMPANY
                          GENERAL CABLE HOLDINGS, INC.
                          GENERAL CABLE INDUSTRIES, INC.
                          GENERAL CABLE INDUSTRIES, LLC
                          GENERAL CABLE MANAGEMENT LLC
                          GENERAL CABLE OVERSEAS HOLDINGS, INC.
                          GENERAL CABLE RESOURCES CORPORATION
                          GENERAL CABLE TECHNOLOGIES CORPORATION
                          GENERAL CABLE TEXAS OPERATIONS, L.P.
                          GK TECHNOLOGIES, INCORPORATED

                          By: /s/ Robert J. Siverd
                             --------------------------------
                              Robert J. Siverd
                              Executive Vice President

                          DIVERSIFIED CONTRACTORS, INC.
                          GENERAL CABLE DE MEXICO DEL NORTE, S.A. DE C.V.
                          GENERAL CABLE DE LATINOAMERICA, S.A. DE C.V.
                          MARATHON STEEL COMPANY
                          MARATHON MANUFACTURING HOLDINGS, INC.
                          MLTC COMPANY

                          By: /s/ Robert J. Siverd
                             --------------------------------
                              Robert J. Siverd
                              Secretary

                                      -25-
<PAGE>

Confirmed and accepted as of the date first above written:

MERRILL LYNCH, PIERCE, FENNER & SMITH
             INCORPORATED

By:   /s/ R.D.Faber
      ---------------------------------
      R.D.Faber
      Managing Director

UBS SECURITIES LLC

By:   /s/ Richard Beaudoin
      ---------------------------------
      Richard Beaudoin
      Executive Director

By:   /s/ Charles Nifong
      ---------------------------------
      Charles Nifong
      Associate Director

                                      -2-

<PAGE>

                                                                      SCHEDULE A

                                   Guarantors

Diversified Contractors, Inc.
Genca Corporation
General Cable Canada, Ltd.
General Cable Company
General Cable de Mexico del Norte SA de CV General Cable Holdings de Mexico SA
de CV General Cable Holdings, Inc.
General Cable Industries, Inc.
General Cable Industries, LLC
General Cable Management LLC
General Cable Overseas Holdings, Inc.
General Cable Resources Corporation
General Cable Technologies Corporation
General Cable Texas Operations, L.P.
GK Technologies, Incorporated
Marathon Steel Company
Marathon Manufacturing Holdings, Inc.
MLTC Company

<PAGE>

                                                                      SCHEDULE B

                               Initial Purchasers

Merrill Lynch, Pierce, Fenner & Smith
            Incorporated
UBS Securities LLC

<PAGE>

                                                                       Exhibit A

                           Form of Opinion of Counsel

Merrill Lynch & Co.
Merrill Lynch, Pierce, Fenner & Smith
            Incorporated
Merrill Lynch World Headquarters
World Financial Center - North Tower
250 Vessey Street
New York, New York 10080

UBS Securities LLC
299 Park Avenue
New York, New York 10171

Ladies and Gentlemen:

                  We have acted as counsel for General Cable Corporation, a
Delaware corporation (the "Company"), in connection with the sale by the Company
to the Initial Purchasers (as defined below) of $285,000,000 aggregate principal
amount of 9.5% Senior Notes due 2010 (the "Notes") of the Company pursuant to
the Purchase Agreement dated November 18, 2003 (the "Purchase Agreement") among
the Company and Merrill Lynch, Pierce, Fenner & Smith Incorporated and UBS
Securities LLC (collectively, the "Initial Purchasers") and the filing by the
Company of an Exchange Offer Registration Statement (the "Registration
Statement") in connection with an Exchange Offer to be effected pursuant to the
Registration Rights Agreement (the "Registration Rights Agreement"), dated
November 24, 2003 between the Company and the Initial Purchasers. This opinion
is furnished to you pursuant to Section 3(f)(B) of the Registration Rights
Agreement. Unless otherwise defined herein, capitalized terms used in this
opinion that are defined in the Registration Rights Agreement are used herein as
so defined.

                  We have examined such documents, records and matters of law as
we have deemed necessary for purposes of this opinion. In rendering this
opinion, as to all matters of fact relevant to this opinion, we have assumed the
completeness and accuracy of, and are relying solely upon, the representations
and warranties of the Issuers set forth in the Purchase Agreement and the
statements set forth in certificates of public officials and officers of the
Issuers, without making any independent investigation or inquiry with respect to
the completeness or accuracy of such representations, warranties or statements,
other than a review of the certificate of incorporation, by-laws and relevant
minute books of the Issuers.

                  Based on and subject to the foregoing, we are of the opinion
as follows:

                  1. The Exchange Offer Registration Statement and the
Prospectus (it being understood that we express no comment with respect to the
financial statements, including the notes thereto, or any other financial or
statistical data that is found in or derived from the internal accounting or
financial records of the Company and its subsidiaries set forth or referred to
in the Registration Statement, Prospectus and the Form T-1), comply as to form
in all material respects with the requirements of the 1933 Act and the
applicable rules and regulations promulgated under the 1933 Act.

                                      A-1
<PAGE>

                  We have participated in the preparation of the Registration
Statement and the Prospectus and in the course thereof have had discussions with
representatives of the Underwriters, officers and other representatives of the
Issuers and Deloitte & Touche LLP the Issuers' independent public accountants,
during which the contents of the Registration Statement and the Prospectus were
discussed. We have not, however, independently verified and are not passing
upon, and do not assume any responsibility for, the accuracy, completeness or
fairness of the statements contained in the Registration Statement and the
Prospectus. Based on our participation as described above, nothing has come to
our attention that would lead us to believe that the Registration Statement (it
being understood that we express no comment with respect to the financial
statements, including the notes thereto, or any other financial or statistical
data that is found in or derived from the internal accounting or financial
records of the Company and its subsidiaries set forth or referred to in the
Registration Statement) contained an untrue statement of a material fact or
omitted to state a material fact required to be stated therein or necessary to
make the statements therein not misleading or that the Registration Statement or
any amendment or supplement thereto (it being understood that we express no
comment with respect to the financial statements, including the notes thereto,
or any other financial or statistical data that is found in or derived from the
internal accounting or financial records of the Company and its subsidiaries set
forth or referred to in the Prospectus), at the time the Prospectus was issued,
at the time any such amended or supplemented Prospectus was issued or at the
Closing Time, included or includes an untrue statement of a material fact or
omitted or omits to state a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading.

                  This opinion is being furnished to you solely for your benefit
in connection with the transactions contemplated by the Registration Rights
Agreement, and may not be used for any other purpose or relied upon by any
person other than you. Except with our prior written consent, the opinions
herein expressed are not to be used, circulated, quoted or otherwise referred to
in connection with any transactions other than those contemplated by the
Registration Rights Agreement by or to any other person.

                                                              Very truly yours,

                                      A-2Humatech premises lease in Mesa, AZ

OFFICE CENTER LEASE 

	 
	 	 	 
	

	 

TABLE OF CONTENTS 

 

1.   LEASE OF PREMISES 

 

2.   LEASE REVIEW OBLIGATIONS OF LANDLORD AND TENANT 

 

3.   DEFINITIONS 

 

4.   EXHIBITS AND ADDENDA 

 

5.   OFFICE CENTER PLAN 

 

6.   OTHER TENANCIES 

 

7.   DELIVERY OF POSSESSION 

 

8.   TENANT'S WORK 

 

9.   RENT 

 

10. POSSESSION AND USE 

 

11. UTILITIESSERVICES 

 

12. INDEMNITY BY TENANT 

 

13. INSURANCE - WAIVE OF SUBROGATION 

 

14. TITLE OF LANDLORD 

 

15. TENANT'S RIGHT TO MAKE ALTERATIONS 

 

16. MECHANICS'LIENS 

 

17. ADVERTISING MEDIA 

 

18. FIXTURES AND PERSONAL PROPERTY 

 

19. ASSIGNING, MORTGAGING, SUBLETTING, CHANGE IN OWNERSHIP 

 

20. TENANT'S CONDUCT OF BUSINESS 

 

21. REPAIR AND MAINTENANCE OF THE PREMISES 

 

22. CASUALTY DAMAGE AND RECONSTRUCTION 

 

23. EMINENT DOMAIN 

 

24. COMMON AREAS 

 

25. DEFAULTS BY TENANT 

 

26. DEFAULTS BY LANDLORD 

 

27. ATTORNEYS' FEES 

 

28. SUBORDINATION-ATTORNMENT 

 

29. QUIET POSSESSION 

 

	 
	 	 	 
	

	 

30. CAPTIONS; JOINT AND SEVERAL LIABILITY 

31. NOTICES 

32. OBLIGATIONS OF SUCCESSORS 

33. CONSENT OF LANDLORD AND TENANT 

34. SECURITY DEPOSIT 

35. MISCELLANEOUS 

36. BROKERS 

37. COMPLIANCE 

38. LANDLORD'S CONTINGENCY 

	 
	 	 	 
	

	 

This Lease between Val Vista-Gateway , a Nevada limited liability company as ("Landlord"), and HumaTech Inc.. an Illinois Corporation , ("Tenant"), is dated 7/15/03. 

1. LEASE OF PREMISES . 

In consideration of the Rent (as defined at Section 9) to be paid by Tenant and the provisions of this Lease, Landlord leases to Tenant and Tenant leases from Landlord the Premises shown by diagonal lines on the plan attached hereto as Exhibit "A", and further described at Section 3.j. The Premises are located within the Office Center described in Section 3.1. Tenant shall have the non-exclusive right (unless otherwise provided herein) in common with Landlord and other tenants, subtenants and invitees of the Office Center, to use of the Common Areas (as defined at Section 3 .d.). The premises are hereby delivered in an "as is" condition, and Tenant hereby accepts same. 

2. LEASE REVIEW OBLIGATIONS OF LANDLORD AND TENANT. 

 

Landlord and Tenant acknowledge and agree that each has the responsibility to personally review and approve the contents of this Lease and to have this Lease reviewed, approved, and modified as needed by their respective attorneys before the Lease is signed. 

 

3. DEFINITIONS . 

 

As used in this Lease, the following terms have the following meanings: 

 

a.   INTENTIONALLY DELETED 

b.   Broker(s) of record: 

Landlord's Broker : Gregory Hopley and Mike Parker. Colliers International. 

 

Tenant's Broker: Same as Landlord's 

 

Landlord's Broker hereby discloses to Landlord and Tenant that Landlord's Broker is acting in this 

transaction as the agent of (check applicable box below): 

 

___Landlord exclusively 

X__Landlord and Tenant 

 

Landlord and Tenant each consent to such representation by Landlord's Broker. 

 

c.   Lease Commencement Date: 

 

Tenant's Lease Commencement Date shall be the date Landlord delivers the Premises to Tenant with Landlord's work (the work described in Exhibit "C") completed agreed and accepted as July 15, 2003. 

Landlord or Tenant (at Landlord's sole discretion) shall commence Tenant's work, if any, promptly in accordance with Exhibit "C" upon possession of the Premises and shall diligently complete the Work so that Tenant can promptly open for business in the Premises. 

 

d.   Common Areas: All areas, structural portions, facilities and equipment of the Office Center outside the Premises and the premises of other tenants, but within the exterior boundaries of the Office Center that are provided and designated by Landlord from time to time for the general uses, benefit and/or convenience of Tenant and/or other tenants of the Office Center and/or their respective authorized representatives and invitees. Common Areas include without limitation, pedestrian walkways and patios, landscaped areas, sidewalks, service corridors, electrical and utility rooms, public restrooms, stairways, roofs, walls, plazas, malls (including any enclosed malls where climate control is provided), throughways, loading areas, parking areas, trash enclosures and roads, all as generally shown on the plan attached hereto as Exhibit "A". Landlord shall have the right to regulate or restrict the use of the Common Areas. 

 

e.  Floor Area: As to both the Premises and the Office Center, the respective measurements of floor area as are from time to time subject to lease by Tenant and all tenants of the Office Center, respectively, as determined and applied by Landlord on a consistent basis throughout the Office Center. Landlord shall be using the BOMA office measurement standards. 

 

f.  Index (Section 9.2): The United States Department of Labor, Bureau of Labor Statistics Consumer Price Index for All Urban Consumers, United States Average, Subgroup "All Items" (1982-84=100). 

 

g.  Landlord's Mailing Address: 3218 E. Holt Avenue, Ste 200, West Covina, Ca 91791 

Tenant's Mailing Address: (HumaTech, Inc., 1718 Fry Road #450, Houston, TX 77084 

	 
	 	 	 
	

	 

 

h.  Minimum Annual Rental (initial) (Section 9:1): 

Shall be payable on the first of each month in twelve (12) equal monthly installments per the following schedule. 

 

Years 1 through 3 (36 months) forty two thousand five hundred dollars ($18,154.00) for each and every lease ear of the primary term, subject to the items defined below. 

 

• Minimum annual rent shall commence July 15, 2003 

• Tenant shall pre-pay its first and second months rent upon execution of this Lease. 

• Minimum annual rent shall be increased pursuant to a separate reserved/shaded parking agreement between Landlord and Tenant. 

• The Minimum annual rent shall not be subj ect to cost of living increases during the primary term of the Lease. 

 

i. INTENTIONALLY DELETED 

 

j.  Premises : That portion of the Office Center shown by diagonal lines on Exhibit "A-l", located in building "C" of the Office Center containing approximately 1252 square feet of Floor Area, which number Landlord and Tenant agree is not the exact measurement of the Premises but, for purposes of calculation in this Lease, this measurement is the agreed upon measurement. 

 

k.         Security Deposit (Article 34): None required. 

(equal to one month's rent including triple net expenses and rental taxes). 

 

1.   Office Center: The building of which the Premises is a part (the "Building") and any other building and improvements on the real property (the "Property") located at 1959 South Val Vista Drive, Mesa AZ., and further described on Exhibit "A". 

 

m.   Tenant's First Adjustment Date (Section 9.2): INTENTIONALLY DELETED 

 

n.    Tenant's Proportionate Share (initial): For purposes of this Lease, "Proportionate Share" shall mean a fraction, the numerator of which shall be 1252, the rentable square feet of Demised Premises, and the denominator of which is _________ rentable square feet which is the aggregate rentable square feet in the Office Center, as completed from time to time, and expressed as a percentage, shall be ____% ( _____ /_____) 

 

o.  INTENTIONALLY DELETED 

 

p.  Tenant's Trade Name (Article II): Huma Tech Inc. 

 

q.  Tenant's Use Clause (Article II): The Premises shall be used and occupied only for the purpose of general office use. 

 

r.  Term : The Term of this Lease shall begin as of the date hereof and shall continue thereafter for a period of three (3) years and no months (plus any partial month) following the Commencement Date. 

 

4.  EXHIBITS AND ADDENDA. 

 

The exhibits and addenda listed below (unless lined out) are incorporated by reference in this Lease: 

 

a.  Exhibit "A" - The legal description of the Parcel of which the Premises are located. 

b.  Exhibit "A-l" - Plan Showing the Premises and Office Center and floor plan of building identifying the Premises. 

 

c.  Exhibit "B" - Office Center Rules and Regulations (See Section 25.5) 

d.  Exhibit "C" and "C-l" - Tenant Improvements/ Work Letter 

 

e.  Exhibit "D" and -D-l" - Office Center Sign Criteria 

f.  Exhibit "E" - Hazardous Materials Rider 

 

g.  Exhibit "F" - Option to Renew 

 

h.  Exhibit "G" - Guaranty of lease 

 

5. OFFICE CENTER PLAN . 

 

The plan of the Office Center attached as Exhibit "A-l" shows, among other things, the principal improvements that initially comprise or will, if the Office Center is built in phases, initially comprise the Office Center. Tenant agrees that Landlord may at any time and from time to time, change the shape, size, location, number, and extent of the improvements now shown on Exhibit "A-1" and may eliminate or add any improvements to any portion of the Office Center, but Landlord agrees (I) not to materially change the size or location of the Premises without Tenant's consent, and (ii) that any such changes will not materially adversely affect ingress to and egress from the Premises, or parking availability (other than temporarily if the Office Center is built in phases) in the Office Center. 

 

	 
	 	 	 
	

	 

 

6. OTHER TENANCIES. 

 

Landlord reserves the absolute right to effect and to lease to such other tenancies and uses in the Office Center as Landlord, in its sole business judgment, determines best promotes the interests of the Office Center. Landlord and Landlord's Broker do not represent, and Tenant does not rely on the possibility, that any specific tenant or number of tenants will occupy space in the Office Center during the Term. 

 

7. DELIVERY OF POSSESSION. 

 

Landlord agrees to deliver to Tenant and Tenant agrees to accept from Landlord possession of the Premises immediately upon lease execution by Tenant, and Landlord, and Landlord's receipt of any and all prepaid rent and other deposits, or upon substantial completion of the building of which the demised Premises are to be located. 

 

8. TENANT'S WORK. 

 

If the Premises are only deliverable in a raw shell condition, then Tenant shall commence design and construction of Tenant's Work as defined in and pursuant to Exhibit "C" in the Premises immediately upon execution and delivery of this Lease. 

 

9. RENT. 

 

9.1 Payment of Minimum Annual Rent . Tenant agrees to pay the Minimum Annual Rent during the Term for its use and occupancy of the Premises commencing immediately following Landlord's substantial completion and delivery of the Premises to Tenant. Minimum Annual Rent shall be payable in advance on the first day of each calendar month of the Term without notice, set off or deduction, in 12 equal monthly installments during each year of the Term. If the Term begins (or ends) on other than the first (or last) day of a calendar month, the Minimum Annual Rent for the partial month shall be prorated on a daily basis, based on a 30-day month. Upon execution of this Lease Agreement by Tenant, Tenant shall pay to Landlord its first months rent. 

9.2 Adjusted Minimum Annual Rent . INTENTIONALLY DELETED 

 

9.3 Property Taxes. 

a. Beginning with the Rent Commencement Date and for the balance of the Term, Tenant shall pay to Landlord as "additional rent" the amount of taxes and assessments levied and assessed for any year upon the Premises and the underlying Property (the "Premises Property Taxes"). Such sum shall be prorated for any partial year of the Term on a daily basis, based on a 360-day year. If the Premises and the underlying Property are not separately assessed, but are assessed as part of the land and improvements on a larger parcel (hereinafter the "Larger Parcel"), Tenant's share of Premises Property Taxes shall be a fractional portion of the property taxes on the Larger Parcel, the numerator of which is the Floor Area of the Premises and the denominator of which is the Floor Area of all the areas available for exclusive use and occupancy by tenants of the Larger Parcel. Tenant shall pay Premises Property Taxes to Landlord as part of Common Area Costs at the times and in the manner provided for the payment of Common Area Costs at Section 24.3 of this Lease. 

b. The term "Premises Property Taxes" shall mean: (I) any fee, license fee, license tax, business license fee, commercial rental tax, levy, charge, improvement or other bond, assessment, penalty or tax imposed by any taxing authority against the Premises, Property or the Office Center; (ii) any tax on Landlord's right to receive, or the receipt of, rent or income from the Premises, Property or the Office Center or against Landlords business of leasing space in the Office Center; (iii) any tax or charge for fire protection, streets, sidewalks, road maintenance, refuse or other services provided to the Premises, Property or Office Center by or through any governmental agency; (iv) any tax imposed upon this transaction or based upon a re-assessment of the Premises, Property or Office Center due to a change in ownership or transfer of all or part of Landlord's interest in the Premises, Property or Office Center; and (v) any charge or fee replacing any tax previously included within the definition of real property tax. "Premises Property Taxes" do not, however include Landlord's federal or state income, franchise, inheritance or estate taxes. 

 

9.4. Percentage Rental . INTENTIONALLY DELETED 

 

9.5 Additional Rent . Tenant shall pay, as additional rent, all sums of money required to be paid pursuant to the terms of this Article 9, the sums to be paid pursuant to Articles, 11, 21, 24 and Exhibit "C", and all other sums of money or charges required to be paid by Tenant under this Lease, whether or not such sums are specifically designated as "additional rent." All amounts required to be paid by tenant hereunder are sometimes collectively referred to as "Rent." 

 

	 
	 	 	 
	

	 

 

9.6 Interest and Late Charges . If Tenant fails to pay when due and payable, any rent, additional rent, or other sums due from Tenant under this Lease, the unpaid amounts shall bear interest at the maximum lawful rate from the date due to the date of payment, and a $75.00 insufficient funds fee shall be charged to Tenant. 

 

Tenant acknowledges that its late payment of any monthly installment of Minimum Annual Rent will cause Landlord to incur certain costs and expenses not contemplated under this Lease, the exact amount of which is extremely difficult or impractical to fix. Such costs and expenses will include, without limitation, loss of use of money, administrative and collection costs, and processing and accounting expenses. Therefore, if any installment of Minimum Annual Rent is not received by Landlord from tenant by the fifth (5th) day of the month for which such installment is due. Tenant shall immediately pay to Landlord a late charge equal to 10 of such installment. Such late charge is in addition to any interest and fee due pursuant to the preceding paragraph of this Section 9.6. Landlord and Tenant agree that this late charge represents a reasonable estimate of costs and expenses incurred by Landlord from, and is fair compensation to Landlord for its loss suffered by, such nonpayment by Tenant. Acceptance of this late charge shall not constitute a waiver of Tenant's default with respect to such nonpayment by Tenant nor prevent Landlord from exercising any other rights and remedies available to Landlord under this Lease. 

 

9.7 Payment of Rent . All Rent and other payments due under this Lease shall be paid by Tenant to Landlord at a place designated by Landlord in writing. Any change by Landlord of said designated place shall be noticed to Tenant at least 10 days prior to the next ensuing payment date. 

 

10. POSSESSION AND USE. 

 

10.1 Permitted Uses and Prohibited Conduct . Possession of the Premises shall be delivered to Tenant free and clear of all tenants and occupants and the rights of either, and free of liens and encumbrances other than those specified in Article 14 hereof. Tenant shall use the Premises solely for the purposes set forth in Tenant's Use Clause and shall operate its business only under the trade name specified as Tenant's Trade Name. Tenant shall not use or permit the Premises to be used for any other purposes or under any other trade name. Tenant shall not, without the prior written consent of Landlord, sell merchandise from vending machines or allow any coin operated vending or gaming machines on the Premises. Tenant shall not use or permit any person to use the Premises for conducting a second-hand store, auction, distress or fire sale or bankruptcy or going-out-of-business sale, or for any use or purpose in violation of the laws, ordinances, regulations and requirements of the United States or the State, County and City where the Office Center is located, or any other lawful authority. Tenant shall, during the Term, keep the Premises in a clean and wholesome condition, free of any objectionable noises, odors or nuisances, and shall comply with all health and police regulations. All trash and rubbish of Tenant shall be deposited only in receptacles provided by Landlord and no other trash receptacles shall be permitted to remain outside the Premises or Building. Landlord shall cause such receptacles to be emptied and trash removed at Tenant's expense. Tenant shall not cause or permit waste to occur in the Premises and shall not overload any floor or-abuse the plumbing in the Premises. 

 

Tenant may not display or sell merchandise or allow carts, portable signs, devices or any other objects to be stored or to remain outside the defined exterior walls, roof or permanent doorways of the Premises, or in Building hallways. No aerials or antennae shall be erected on the roof or exterior walls of the Premises or Building without first obtaining, in each instance, the written consent of Landlord. Any aerial or antenna so installed without Landlord's written consent may be removed without notice at any time, at Tenant's expense. Tenant shall not solicit or distribute materials in any manner in any of the Common Areas (including automobile parking facilities). 

 

10.2 Insurance Coverage Use Restrictions . Tenant shall not carry any stock or goods or do anything in or about the Premises which tends to increase the insurance rates on the Building or Office Center or impairs Landlord's ability to maintain insurance coverage on the Building or Office Center. Tenant agrees to pay to Landlord promptly upon demand the amount of any increases in Landlord's insurance premiums caused by Tenant's violation of these restrictions, whether or not Landlord has consented to such act(s) by Tenant. If Tenant installs any electrical equipment in the Premises which overloads the electrical lines of the Premises, Tenant shall, at its expenses, make any changes and install any fire extinguishing equipment required by Landlord's insurance underwriters or applicable fire, safety and building codes and regulations. Nothing herein contained constitutes Landlord's consent to such overloading. 

 

10.3 Deliveries. Tenant shall use its best efforts to complete all deliveries, loading, unloading and services to the Premises before 10:00 a.m. each day. Tenant shall attempt to prevent any delivery trucks or other vehicles servicing the Premises from parking or standing in front of, or at the rear of, the Premises from 10:00 a.m. to 9:00 p.m. of each day. Landlord reserves the right to further regulate the activities of Tenant in regard to deliveries to and servicing for the Premises, and Tenant agrees to abide by such further non-discriminatory regulations of Landlord. 

 

11. UTILITIES SERVICES. 

 

11.1 Utilities installation . Landlord agrees that to the extent provided for in Exhibit "C" hereof, it will initially make available to Tenant (i) facilities for the removal of sewage and the delivery to Premises of water; phone service, cable TV access, fiber optics, and electricity shall be stubbed into the utility room only. [theses facilities are collectively referred to in this Article 11 as "utilities"]. Unless Landlord agrees otherwise, Tenant shall use only those utilities provided for under Exhibit "C-l" to serve the Premises. If required under Exhibit "C" or "C-l" a separate meter shall measure the consumption of utilities and/or the HVAC system. 

	 
	 	 	 
	

	 

 

11.2 Utilities and HVAC System Charges . Tenant shall pay for all utilities used by Tenant on the Premises from and after substantial completion of Landlord's Work in the Premises. If Tenant's utilities and/or HVAC system are separately metered. Tenant shall pay directly to the appropriate utility company the cost of all such utilities used on the Premises. If Tenant's utilities and/or HVAC system are separately "sub-metered" or if any of Tenant's utilities and/or HVAC system are furnished by Landlord without separate metering, then during the Term, Tenant shall pay as additional rent, monthly in advance, a utilities charge to reimburse Landlord for any such utilities furnished by Landlord to the Premises. This utilities charge shall, at Landlord's election, be established (a) by an estimate of usage made from time to time by Landlord's engineer or the appropriate utility company, and initially based on a typical store layout comparable to Tenant's proposed use of the Premises, or (b) a percentage of such total utility costs equal to a fraction, the numerator of which is the Floor Area of the Premises, and the denominator of which is the Floor Area of Office Center actually being furnished with utility service by Landlord at the time of billing. If Tenant's Premises is not separately metered, such utilities and/or HVAC charges may be billed with Tenant's share of Common Area Costs under Section 24.3. The utilities charge to Tenant hereunder for utilities furnished by Landlord shall be based on utility rates, which do not exceed those charged by the local public utility company for services it would otherwise furnish directly to Tenant. If the Premises are not initially separately metered. Landlord shall have the right, to require Tenant to install separate meters for the Premises at any time during the Term. 

 

11.3 Failure to Pay . If Tenant fails to pay any amount due to Landlord hereunder within 10 days after receipt by Tenant of a bill therefor. Landlord may (in addition to all other rights and remedies provided herein for breach of this Lease and if permitted by law) cut off and discontinue, upon 5 days' advance notice to Tenant an opportunity to cure, any such utilities furnished to the Premises by Landlord until all such amounts are paid in full. 

 

11.4 No Landlord Liability . Landlord shall not be liable for damages or otherwise for any failure or interruption of (i) any utility service being furnished to the Premises, or (ii) operation of the HVAC system, if any. No such failure or interruption shall entitle Tenant to terminate this Lease or stop making any Rent or other payments due hereunder. 

 

12. INDEMNITY BY TENANT. 

 

Tenant shall indemnify and hold Landlord harmless from any and all costs, claims or liability of any kind arising out of: (a) Tenant's use and occupancy of the Premises, (b) the conduct of Tenant's business or any work, activity or other things allowed or permitted by Tenant to be done in or on the Premises; (c) any breach or default in the performance of any of Tenant's obligations under this Lease; (d) any misrepresentation or breach of warranty by Tenant under this Lease; and/or (e) any other acts or omissions of Tenant, its agents, employees, invitees or contractors. Tenant shall, at Tenant's expense, and by counsel satisfactory to Landlord, defend Landlord in any action or proceeding arising from any such claim or liability and shall indemnify Landlord from and against all costs, attorney's fees, expert witness fees and any other expenses incurred in such action or proceeding. As a material part of the consideration for Landlord's execution of this Lease, Tenant hereby assumes all risk of damage to property or injury to persons in, on or about the Premises from any cause, and Tenant hereby waives all claims in respect thereof against Landlord, except for any claim arising out of Landlord's gross negligence or willful misconduct. 

13. INSURANCE - WAIVE OF SUBROGATION . 

 

13.1 Tenant's Insurance Obligations . Tenant shall, from and after the earlier of (a) substantial completion of Landlord's Work in the Premises, or (b) commencement of any of Tenant's Work in the Premises, and for the remainder of the Lease Term maintain, at its expense, the following types of insurance coverage, in the amounts specified and in the forms hereinafter provided for: 

 

(i) LIABILITY INSURANCE . Commercial general liability insurance (sometimes known as comprehensive general liability insurance) insuring Tenant against liability for bodily injury, property damage (including loss of use of property) and personal injury arising out of the operation, use or occupancy of the Premises. Such policy shall be an occurrence form and shall include owner's and Contractor's Protective Liability with respect to construction of improvements by Tenant on the Premises. Tenant shall name Landlord as an additional insured under such policy. The initial amount of such insurance shall be not less than $ 1,000,000 per occurrence. The liability insurance obtained by Tenant under this Section 13.1(i) shall (1) be primary and non-contributing; (2) contain cross-liability endorsements; and (3) insure Landlord against Tenant's performance under Article 12(a), (b) and (e) if the matters giving rise to the indemnity under Article 12 result from the negligence of Tenant. The amount and coverage of such insurance shall not limit Tenant's liability nor relieve Tenant of any other obligation under this Lease. 

 

(ii) PLATE GLASS . Insurance covering the full replacement cost of all plate glass on the Premises. 

 

(iii) TENANT IMPROVEMENTS . Insurance covering all of the items specified as "Tenant's Work" in Exhibit "C", Tenant's leasehold improvements, alterations, additions or improvements permitted under Article 15, and trade fixtures, merchandise and personal property from time to time located in, on or upon the Premises. Such insurance shall cover not less than 100 of the full replacement cost of the foregoing from time to time during the Term, and shall provide protection against any peril included within the classification of fire, extended coverage, sprinkler leakage, vandalism, theft, malicious mischief and special extended perils (all risk). Any policy proceeds shall be used for the repair or replacement of the property damage or destroyed unless this Lease is terminated under the provisions of Article 22 hereof. 

 

	 
	 	 	 
	

	 

 

(iv) GENERAL INSURANCE PROVISIONS. 

 

(a) Any insurance required to be maintained by Tenant hereunder shall include a provision which requires the insurance carrier to give Landlord not less than thirty (30) days' written notice prior to any cancellation or modification of such coverage. 

 

(b) A certificate of the insurer or the insurer's legal representative evidencing the existence and amount of each insurance policy required of Tenant hereunder shall be delivered to landlord before the date Tenant is first given the right of possession of the Premises, and thereafter at least 30 days prior to the expiration of any such policy. Landlord may, at any time and from time to time, inspect and/or copy any insurance policies required to be maintained by Tenant hereunder. No such policy shall be cancelable except after 30 days' written notice to Landlord. If Tenant fails to deliver any such evidence of insurance to Landlord required under this Lease within the prescribed time period or if any such policy is canceled or modified during the Lease Term without Landlord's consent, Landlord may obtain such insurance coverage, in which case Tenant shall reimburse and lord as additional rent, the cost of such insurance within fifteen (15) days after receipt of a statement there for. 

(c) All insurance shall be maintained with companies holding "General Policy Rating" ofA-XII or better, as set forth in the most current issue of "Best's Key Rating Guide." Landlord and Tenant acknowledge the insurance markets are rapidly changing and that insurance in the form and amounts described in this Section 13.1 may not be available in the future. Tenant acknowledges that the insurance described in this Section 13.1 is for the primary benefit of Landlord. If at any time during the Lease Term, Tenant is unable to maintain the insurance required under the Lease, Tenant shall nevertheless maintain insurance coverage which is customary and commercially reasonable in the insurance industry for Tenant's type of business, as that coverage may change from time to time. Landlord makes no representation as to the adequacy of such insurance to protect Landlord's or Tenant's interests. Therefore, Tenant shall be responsible for obtaining any such additional property or liability insurance which Tenant deems necessary to protect Landlord and Tenant. 

 

13.2 Landlord's Insurance Obligations . Landlord shall, in connection with its ownership and operation of the Office Center, at all times from and after commencement of Landlord's Work in the Premises, maintain in effect policies of insurance providing protection against the following liabilities and/or risks: (a) commercial general liability insurance in an amount not less than $1,000,000.00 combined single limit for bodily injury and property damage, and (b) fire and extended coverage insurance (including coverage for Common Area sprinkler damage, vandalism and malicious mischief, and, if required by any lender holding a security interest in the Office Center 

or if deemed necessary by Landlord, flood and earthquake insurance) on the Building and Office Center in an amount not less than their full replacement cost from time to time during the Term. The types and coverages of insurance maintained by Landlord hereunder shall be subj ect to such further requirements as may be imposed by Landlord's lender. Landlord shall also have the right to maintain such additional types and coverages of insurance (including business interruption insurance) as are customary, prudent or reasonable for Office Centers similar to the Office Center. Landlord's obligation to carry the insurance provided for herein may be satisfied by blanket policies if the coverage required hereunder is satisfied. 

13.3 Waiver of Subrogation . Landlord and Tenant (for themselves and their insurers) each hereby waive all rights of recovery against the other and against the officers, employees, agents and representatives of the other, against any of the parties to the Reciprocal Easement Agreement (REA) referred to in Article 14 hereof (the "Parties") and against other tenants of the Office Center (provided such Parties and other tenants have waived such rights against Landlord and Tenant), on account of any loss by or damage to the waiving party or its property or the property of others under its control (including as to Tenant the Premises and its contents, and as to Landlord the other portions of the Office Center), arising from any risk generally covered by fire and extended coverage insurance. The foregoing waivers of subrogation shall be required hereunder only if (a) then available in the State where the Office Center is located, and (b) such waiver does not invalidate the applicable policy. 

 

14. TITLE OF LANDLORD . 

Landlord's estate in the Office Center and Tenant's leasehold estate in the Premises is subject to the liens or restrictions of (a) any matters or documents of record (the "Matters of Record"), including the effect of any covenants, conditions, restrictions, easements, mortgages or deeds of trust, ground leases, rights of way or any construction, operation and reciprocal easement agreement (the "REA"); and (b) the effect of any zoning laws of the City, County and State where the Office Center is located. Tenant agrees that (i) Tenant and all persons in possession of Tenant's leasehold estate or holding under Tenant will conform to and will not violate the terms of any REA or any other Matters of Record, and (ii) this Lease is subordinate to the Matters of Records and the REA, if any, and any amendments or modifications thereto. If the Matters of Record or the REA, if any, is not of record as of the date of this Lease, then this Lease shall automatically become subordinate to the Matters of Record and the REA upon recordation of same. Tenant agrees to execute and return to Landlord within 10 days after written demand therefor by Landlord, an agreement in recordable form satisfactory to Landlord subordinating this Lease to the Matters of Record or the REA. Any Matters of Record or REA shall not prevent Tenant from using the Premises for the purposes set forth in Tenant's Use Clause. 

	 
	 	 	 
	

	 

 

15. TENANT'S RIGHT TO MAKE ALTERATIONS. 

 

15.1 Permitted Improvements . Subject to the terms of this Article 15, Tenant may from time to time after completion of Tenant's Work, pursuant to Exhibit "C"; and at its own expense, make alterations, additions, improvements and changes (individually and collectively referred to in this Article 15 as "improvements)" in and to the interior of the Premises after first giving notice to Landlord of the improvement work proposed to be done and providing Landlord with all plans for such proposed improvement work. Tenant may not make any improvement that reduces the value of the Premises or is of a structural nature. No single improvement costing more than $50.00 may be made without first obtaining the written approval of Landlord. In addition, no improvement shall be made to any storefront, mechanical system, or exterior wall or to the roof of the Premises, nor shall Tenant erect any mezzanine or increase the size of an existing mezzanine, unless and until the written consent and approval of Landlord is first obtained. 

 

No penetration into or through tlie roof or floor of the Premises may be made without Landlord's prior written approval of the reason for such penetration and the method by which it is to be done. If Landlord approves any such penetration. Landlord shall have the absolute right to select and supervise the contractor performing such penetration. Tenant shall be liable for any damage caused by any such penetration, whether or not so approved by Landlord. Tenant shall reimburse Landlord for all costs incurred by Landlord (including architect's and/or engineer's fees) in approving Tenant's plans for improvements and for reasonable costs incurred by Landlord in supervising any improvement work required to be approved by Landlord hereunder. 

15.2 Construction requirements . All improvements to be made to the Premises which require the approval of Landlord shall be performed under the supervision of a Landlord approved architect or licensed structural engineer, or licensed general contractor and shall be made in accordance with plans and specifications first approved in writing by Landlord before the commencement of work. All improvements shall be constructed in a good and workmanlike manner in accordance with all applicable laws (including any laws relating to the use of hazardous materials, such as asbestos containing materials) and diligently completed. Before commencement of any construction. Tenant shall deliver a copy of the building permit to Landlord and shall provide Landlord with a list of all contractors or subcontractors being used. Upon completion of such improvements. Tenant shall file a Notice of Completion for record in the office of the County Recorder where the Office Center is located, as required or permitted by law. Tenant shall provide Landlord with "as built" plans, copies of all construction contracts, and proof of payment for all labor and materials in connection with any improvements made to the Premises. Upon expiration or earlier termination of this Lease, such improvements shall become a part of the Premises and shall not be removed by Tenant. In constructing such improvements. Tenant shall have the work performed in such a manner as not to obstruct access to the premises of any other tenant in the Office Center. 

 

15.3 Insurance Requirements . If Tenant makes any permitted improvements to the Premises under the provisions of this Article 15, Tenant shall carry insurance covering any such improvements satisfying the requirements of Section 13.1(iii). It is expressly understood and agreed that no such improvements will be insured by Landlord under the insurance it may carry upon the Building or Office Center, nor shall Landlord be required to reinstall any such improvements made by Tenant under any provision of Article 22 for reconstruction of the Premises. 

 

16. MECHANICS' LIENS. 

 

16.1 Tenant's Covenants. Tenant shall pay all costs (except those costs provided by Landlord pursuant to Exhibit "C") for work done by or for Tenant in the Premises (other than Landlord's Work), and Tenant shall keep the Premises, Building and Office Center free of all mechanics' liens and other liens on account of work done for Tenant. Tenant shall indemnify, defend and hold Landlord harmless from and against any and all liability, loss, damage, costs, attorneys' fees and all other expenses on account of claims of lien of laborers or material men or others for work performed or materials or supplies furnished to or for Tenant or persons claiming under Tenant. In addition, Tenant shall keep Tenant's leasehold interest and any of those improvements to the Premises which are or become property of Landlord, pursuant to this Lease, free of all attachment or judgment liens. Prior to commencing any work in or to the Premises (including the supply of any labor, services or materials for the construction of improvements in the Premises under Article 15 or Exhibit "C"), Landlord may require Tenant to provide demolition and/or lien and completion bonds in form and amount satisfactory to Landlord. 

 

16.2 Tenant's Contest of Lien . If Tenant desires to contest any claim of lien arising from work done by or for Tenant in the Premises, Tenant shall first furnish Landlord adequate security I the amount of the claim, plus estimated costs and interest, or a bond of a responsible corporate surety in such amount, conditioned on the discharge of the lien. If a final judgment establishing the validity or existence of any such lien for any amount is entered. Tenant shall immediately pay and satisfy such judgment. 

16.3 Landlord's Right to Cure . If Tenant is in default in paying any charge for which a lien, claim and suit to foreclose the lien have been filed, and Tenant has not given Landlord adequate security to protect the Premises, the property therein, and the Building, Office Center and Landlord from liability for such claim of lien. Landlord may (but shall not be required to) pay the claim and any associated costs, and the amount so paid, together with reasonable attorneys' fees incurred in connection with such payment shall be immediately due and owing from Tenant to Landlord. Tenant shall pay the amounts so owed to Landlord with interest at the maximum lawful rate from the date of Landlord's payment. 

 

	 
	 	 	 
	

	 

 

16.4 Notice of Lien . If any claim of lien is filed against the Premises or any action affecting the title to the Premises or the property therein is commenced, the party receiving notice of such lien or action shall immediately give the other party written notice thereof. 

 

16.5 Notice of Non-Responsibility . Landlord or its representatives shall have the right to enter and inspect the Premises at all reasonable times and shall have the right to post and keep posted thereon notices of non-responsibility, or such other notices which Landlord deems proper for the protection of Landlord's interest in the Premises. Tenant shall, before commencing any work which might result in the filing of a lien, give Landlord written notice of its intention to so commence work in sufficient time to enable Landlord to post such notices. 

 

17. ADVERTISING MEDIA. 

 

Tenant shall not affix or maintain upon the glass panes or supports of the outside windows (or within 24" of any window), doors or exterior walls of the Premises, any signs, advertising placards, names, insignia, trademarks, descriptive material or any other like item(s) without having first received the written approval of Landlord as to the size, type, color, location, copy, nature and display qualities of any such item. Tenant shall not affix any sign to the roof of the Premises. Tenant shall not utilize any advertising medium that can be seen or heard outside the Premises, including without limitation, flashing lights, searchlights, loudspeakers, phonographs, radios or television. Tenant shall not display paint or place any handbills, bumper stickers or other advertising devices on any vehicle parked in the parking area of the Office Center, nor shall Tenant distribute any handbills or other advertising devices in the Office Center. If Tenant desires to erect a storefront type sign(s), said signs shall be designed and mounted in accordance with the provisions of the sign criteria attached hereto as Exhibit "D." 

 

18. FIXTURES AND PERSONAL PROPERTY. 

 

18.1 Removal and Replacement . All of Tenant's trade fixtures, furnishings, furniture, signs and other personal property not permanently affixed to the Premises, (collectively referred to as "Personal Property") shall be in good condition when installed in or attached to the Premises by Tenant and shall remain the property of Tenant. If Tenant is not then in default under the terms of this Lease, Tenant shall have the right to remove its Personal Property from the Premises, including without limitation, free standing; counters, shelving, showcases, mirrors and other movable Personal Property, but prior to the expiration of the Term, Tenant may not remove so much of its Personal Property without immediately replacing it with comparable or better quality Personal Property, as to render the Premises unsuitable for conducting the business specified in Tenant's Use Clause. Tenant shall, at its expense, immediately repair any damage to the Premises resulting from removal of its Personal Property, and on the expiration or earlier termination of the Term shall leave the Premises in a neat and clean condition, free of debris. 

 

18.2 Fixtures . All improvements to the Premises made by or for Tenant, excluding Tenant's Personal Property, but including mechanical systems HVAC, light fixtures, doors and door frames floor coverings and partitions and all other items comprising Tenant's Work pursuant to Exhibit "C" (collectively referred to as "Fixtures"), shall become the property of Landlord upon expiration or earlier termination of this Lease. 

 

18.3 Personal Property Taxes . Tenant shall pay before delinquency all taxes (including sales and use taxes), assessments, license fees and public charges levied, assessed or imposed upon its business operations, merchandise, trade fixtures and/or Personal Property. If any such items of property are assessed with any Larger Parcel as defined in Section 9.3, Tenant shall pay Landlord the taxes attributable to Tenant's personal property within 15 days after Tenant's receipt of a written statement from Landlord setting forth such personal property taxes. Landlord shall reasonably determine the basis of prorating any such assessments and such determination shall be binding on Landlord and Tenant. No taxes, assessments, fees or charges referred to and billed to Tenant under this paragraph shall be considered to be taxes under the provisions of Section 9.3 hereof. 

 

19. ASSIGNING, MORTGAGING, SUBLETTING, CHANGE IN OWNERSHIP . 

19.1 One Year Prohibition Against Transfer . INTENTIONALLY DELETED 

 

19.2 Restrictions on Transfer . If Tenant desires to effect a Transfer to anyone (a "Transferee") other than a successor, subsidiary, affiliated or controlling corporation of Tenant (an "Affiliate"), Tenant shall give written notice ("Transfer Notice") to Landlord at least 60 days before the effective date of any such proposed Transfer. The Transfer Notice shall state (a) whether Tenant proposes to assign the Lease, sublet the Premises, enter into a license or concession agreement or change ownership, (b) the proposed effective date of the Transfer, (c) the identify of the proposed Transferee, (d) all other material terms of the proposed Transfer, and (e) in detail the type of business operation the proposed Transferee intends to conduct on the Premises. The Transfer Notice shall be accompanied by a copy of the proposed agreement documenting the Transfer, or if none, a copy of any offers, draft agreements, letters of commitment or intent and other documents pertaining to the proposed Transfer. In addition, the Transfer Notice shall be accompanied by the proposed Transferee's income statements and balance sheets covering the preceding 36-month period, and each shall be certified as accurate by the Transferee. Landlord may, at any time within 30 days after its receipt of Transfer Notice, grant or withhold consent to such proposed Transfer (which consent shall not be unreasonably withheld under the business judgment standards set forth in Section 19.3 below) by mailing written notice to Tenant of its decision ("Decision Notice"). If Landlord consents to the proposed Transfer, Tenant may thereafter promptly effect a Transfer in accordance with the terms of Tenant's Transfer Notice. Tenant shall bear the costs that Landlord incurs on subleases, assignments and transfers by Tenant. These costs shall include but not be limited to attorney fees. The transfer charge to Tenant shall not be less than $300.00 for each transfer and assignment. If Landlord consents to the proposed Transfer and Tenant does not consummate the proposed Transfer within 30 days after receipt of Decision Notice, the provisions of the first paragraph of this Section 19.2 shall again apply. 

	 
	 	 	 
	

	 

 

19.3 Grounds for Withholding Consent . Landlord may withhold consent to a proposed Transfer if, in Landlord's reasonable business judgment, any of the following is the case: (i) the proposed Transferee lacks a good business reputation or sufficient relevant business experience; (ii) the financial worth of the proposed Transferee as of the date of Transfer Notice is less than the combined financial worth of Tenant and Tenant's guarantor (if any) as of either the date of this Lease or the date of Transfer Notice; or (iii) the proposed Transfer would breach any Matters of Record, or REA of Landlord including, use or exclusivity rights in any other lease, or any financing or other agreement relating to the Office Center. Any attempted or purported Transfer without Landlord's written consent shall be void and of no force or effect. 

 

19.4 No Release from Liability . No Transfer, whether with or without Landlord's consent, shall relive Tenant or any guarantor of Tenant's obligations under this Lease, from its covenants and obligations hereunder during the Term. 

19.5 Transferee's Obligations . Each Transfer to which Landlord has consented shall be evidenced by a written instrument in form satisfactory to Landlord, and executed by Tenant and the Transferee. Each such Transferee shall agree in writing for the benefit of Landlord to assume, be bound by, and perform the terms, covenants and conditions of this Lease to be performed, kept or satisfied by Tenant, including the obligation to pay to Landlord all amounts coming due under this Lease. One fully executed copy of such written instrument shall be delivered to Landlord. Failure to obtain in writing Landlord's prior consent or otherwise comply with the provisions of this Article 19 shall prevent any Transfer from becoming effective. 

 

19.6 Division of Profit Between Landlord and Tenant . Any sums or other economic consideration received by Tenant as a result of a Transfer, however denominated, which exceed, in the aggregate, (i) the total sums which Tenant is obligated to pay Landlord under this Lease (prorated to reflect obligations allocable to any portion of the Premises subleased), plus (ii) the unamortized value of leasehold improvements to the Premises paid for by Tenant prior to the date of Transfer Notice, depreciated on a straight-line basis over the Term, plus (iii) any real estate brokerage commissions or fees payable by Tenant in connection with such Transfer, plus (iv) costs of renovation or construction of improvements to the Premises for the benefit of the Transferee required to be paid for by Tenant as a part of the Transfer, shall solely inure to the benefit of Landlord. Said profit shall be paid to Landlord promptly following its receipt, as additional rent under this Lease. Such payments shall not affect or reduce any other obligations of Tenant hereunder. Landlord shall have the right to audit Tenant's books and records during normal business hours at either the Premises or Tenant's principal place of business upon 48 hours' advance written notice for the purpose of verifying Tenant's compliance with its obligations hereunder. 

 

19.7 Further Restrictions . Tenant shall not, without the prior written consent of Landlord (which consent may be granted or withheld in Landlord's sole discretion), mortgage or hypothecate this Lease or any interest herein. Tenant shall not permit the Premises to be used by any party other than Tenant or a permitted Transferee. Any of the foregoing acts without such consent shall be void and shall, at the option of Landlord, terminate this Lease. For purposes of this Article 19, if Tenant is a partnership, any withdrawal(s) or change(s) of partners cumulatively owning a 50 or more interest in the partnership, or if Tenant is a corporation, any transfer(s) cumulating 50 or more of its stock, shall constitute a voluntary Transfer and shall be subject to the provisions hereof. This Lease shall not, nor shall any interest of Tenant herein, be assignable by operation of law without the written consent of Landlord. 

 

20. TENANT'S CONDUCT OF BUSINESS 

 

20.1 Tenant's Operating Covenants . Tenant agrees that from and after its initial opening for business, it shall, subject to the provisions of Section 22.5 hereof, operate and conduct its business in the Premises during all Office Center Business Hours (as hereinafter defined) and in accordance with the provisions of this Lease. Tenant shall at all times keep and maintain in the Premises in a neat, clean and orderly condition. 

20.2 Hours and Days of Operation . Tenant may at Tenant's election, subject to any restrictions imposed upon Tenant by any Governing entity concerned with the matter, operate it's business twenty four hours per day, seven days per week. 

 

21. REPAIR AND MAINTENANCE OF THE PREMISES . 

 

21.1 Tenant's Obligations . Tenant shall, at its expense and at all times from and after substantial completion of the Premises; repair, replace and maintain in good and tenantable condition, the Premises and every part thereof (except portions of the Premises to be maintained by Landlord under Section 21.2), including without limitation, the utility meters, pipes and conduits serving the interior of Tenant's Premises, all fixtures, all signs, locks and closing devices, all interior window sashes, casements or frames, doors and door frames, security grilles or similar enclosures, floor coverings, including carpeting, terrazzo or other special flooring, all other equipment installed in the Premises, and all such items of repair, maintenance, alteration and improvement or reconstruction to the interior of the Premises as may at any time or from time to time be required by any governmental agency having jurisdiction thereof. All interior glass in the Premises shall be maintained by Tenant and any glass broken shall be promptly replaced by Tenant at its expense with glass of the same kind, size and quality. 

	 
	 	 	 
	

	 

 

Upon surrender of the Premises, Tenant shall deliver the Premises to Landlord in good order, condition and repair, but Tenant shall not be responsible for ordinary wear and tear to the Premises, damage due to insured casualty losses covered by Article 22 or for any items of repair which are Landlord's obligation under Section 21.2. 

 

21.2 Landlord's Obligations . Subject to Tenant's obligations under Section 22.1 and Landlord's further obligations, if any, under Section 24.2, Landlord shall, at the expense of Tenant and all other tenants of the Office Center, repair and maintain in good and tenantable condition the roof, exterior walls, exterior glass and storefronts, glass entry doors, structural parts (including the structural floor) of the building and Premises, and roof mounted HVAC units. Landlord shall administrate all interior janitorial services to maintain Tenant's premises in a clean condition, at Tenant's expense. Said janitorial services shall be conducted on each and every day of the work-week excluding Saturdays and Sundays and usual holidays. Tenant shall have the right, after written notice to Landlord, to select a lesser janitorial schedule for Tenant's Premises and thereby reduce Tenant's proportionate share of janitorial expenses. Landlord shall bill Tenant for Tenant's Proportionate Share of the cost of such repairs and maintenance as a part of Common Area Costs under Article 24 hereof. 

 

It is understood and agreed that Landlord is under no obligation to make any repairs, alterations, replacements or improvements to the Premises or the mechanical equipment exclusively serving the Premises at any time except as expressly set forth in this Lease. 

 

Notwithstanding anything to the contrary contained in this Lease, Landlord shall not be liable to Tenant for failure to make repairs required of Landlord hereunder unless Tenant has previously notified Landlord in writing of the need for such repairs and Landlord has failed to commence and complete those repairs within a reasonable period of time following receipt of Tenant's notice. 

 

21.3 Tenant's Failure to Maintain Premises . If Tenant fails to repair or maintain the Premises, or any part thereof, in a manner reasonably satisfactory to Landlord, Landlord shall have the right (in addition to all other rights and remedies provided herein for breach of this Lease), upon giving Tenant reasonable written notice of its election to do so (and opportunity to cure), to make such repairs or perform such maintenance on behalf of and for the account of Tenant. In such event, the cost of such work shall be paid to Landlord by Tenant promptly following receipt of a bill therefor. 

 

21.4 Landlord's Right of Entry . Landlord or its authorized representatives may enter the Premises at all times during Office Center Business Hours to inspect the Premises, make repairs to the Premises authorized hereunder or perform any work therein (i) needed to comply with any laws, ordinances, rules or regulations of any public authority or the Insurance Services Office or any similar body, (ii) that Landlord deems necessary to prevent waste or deterioration in or to the Premises if Tenant fails to make repairs or perform required work promptly after receipt of written demand from Landlord, or (iii) that Landlord deems necessary in connection with the expansion, reduction, remodeling, or renovation of any portion of the Office Center. Nothing herein implies any duty of Landlord to do any such work that, under any provision of this Lease, Tenant is required to do, nor shall Landlord's performance of any repairs on behalf of Tenant constitute a waiver of Tenant's default in failing to do such work. No exercise by Landlord of any rights hereunder shall entitle Tenant to any compensation, damages or abatement of Rent for any injury or inconvenience occasioned by such exercise. If Landlord makes or performs any repairs provided for in (i) or (ii) above. Tenant shall pay the cost thereof to Landlord as additional rent promptly upon receipt of a bill therefore 

 

. 22. CASUALTY DAMAGE AND RECONSTRUCTION . 

 

22.1 Insured Casualty . If the Premises are damaged by fire or other perils covered by Landlord's fire and extended coverage insurance, then within 180 days after the date of such damage Landlord shall commence repair, reconstruction and restoration of the Premises and diligently complete such repairs, in which event this Lease shall continue in full force and effect. Notwithstanding the foregoing, if there is partial or total destruction of the Premises during the last 1 year of the Term, Landlord and Tenant shall each have the option to terminate this Lease by written notice to the other given within 30 days after such destruction. For purposes of this option "partial destruction" shall mean destruction to the extent of 33-1/3 or more of the full replacement cost of the Premises as of the date of destruction. 

 

22.2 Uninsured Casualty . If the Premises are damaged to any extent by act of war, nuclear reaction, nuclear radiation or radioactive contamination, or from any other casualty not covered by Landlord's fire and extended coverage insurance (including flood or earthquake damage if not covered under insurance maintained by Landlord), Landlord may within 180 days following the date of such damage, either (a) commence repair, reconstruction or restoration of the Premises and diligently complete it, in which event this Lease shall continue in full force and effect, or (b) elect not to repair, reconstruct or restore the Premises, in which event this Lease shall cease and terminate as of the date of destruction. In either such event. Landlord shall give Tenant written notice of its election hereunder within a 90 day period following the event of damage. 

 

22.3 Reconstruction Responsibilities . Any reconstruction of the Premises under this Article 22 shall conform to the provisions of Exhibit "C" and shall cover all work set forth therein as "Landlord's Work" and "Tenant's Work." Landlord shall reconstruct the Premises only to the extent of Landlord's Work. Tenant, at its expense, shall reconstruct all items set forth as Tenant's Work, and shall replace its, trade fixtures, furniture, furnishings and equipment. Tenant shall commence reconstruction of Tenant's Work promptly upon delivery to it of possession of the Premises by Landlord with Landlord's Work substantially completed and shall diligently complete Tenant's Work, replace its trade fixtures, furniture, furnishings and equipment, and resume normal business operations in the Premises. 

 

	 
	 	 	 
	

	 

 

22.4 Release from Liability . Upon any termination of this Lease under any of the provisions of this Article 22, each party shall be released from further obligations to the other party under this Lease, except for any obligations that have previously accrued. In the event of termination of this Lease, all proceeds form Tenant's fire and extended coverage insurance under Section 13.1 covering the items set forth as "Tenant Improvement Work" in Exhibit "C" and any other Tenant's leasehold improvements, but excluding proceeds for trade fixtures, furnishings, furniture, merchandise, signs and other personal property, shall be paid to Landlord. 

22.5 Abatement of Rent . In the event of reconstruction of the Premises under this Article 22, the Minimum Annual Rent otherwise payable under this Lease shall be abated proportionately with the degree to which Tenant's use of the Premises is impaired. Such abatement shall commence on the date of destruction and continue during any period of reconstruction and replacement provided for in Section 22.3. Tenant shall continue to operate its business on the Premises during any such abatement period to the extent practical as a matter of prudent business management, and the obligation of Tenant to pay additional rent hereunder shall remain in full force and effect. Tenant shall not be entitled to any compensation or damages from Landlord for loss of the use of the whole or any part of the Premises, Building, Office Center or Tenant's personal property, or for any inconvenience or annoyance suffered by reason of damage or destruction thereto, or the 

 

22.6 Waiver of Statutory Rights of Termination . Tenant hereby waives any statutory rights of termination which may arise by reason of any partial or total destruction of the Premises, Building or Office Center which Landlord is obligated to restore or may restore under any of the provisions of this Lease. 

23. EMINENT DOMAIN . 

 

23.1 Takings Resulting in Termination . If the entire Premises is appropriated or taken (a "taking") under the power of eminent domain by any public or quasi-public authority (an "authority"), this Lease shall terminate as of the date of such taking. 

 

If 25% or more of the Floor Area of the Premises is taken under the power of eminent domain by any authority, or if by reason of any taking, regardless of the amount taken, the remainder of the Premises is not one undivided parcel of property, either Landlord or Tenant may terminate this Lease as of the date Tenant is required to vacate a portion of the Premises, upon giving notice in writing of such election within 30 days after receipt by Tenant from Landlord of written notice that the Premises have been so taken. Landlord shall promptly give Tenant notice in writing of any taking after learning of it. 

 

If more than 25% of the Floor Area of the Office Center or of the Common Areas is taken (whether or not the Premises are so taken) under the power of eminent domain by any authority. Landlord shall have the right to terminate this Lease as of the date any such areas are to be initially vacated by giving Tenant written notice of such election within 30 days of the date of such taking. 

 

If this Lease is terminated as provided in this Section 23.1, Landlord and Tenant shall each be released from any further obligations to the other party under this Lease, except for any obligation(s) that have previously accrued. 

 

23.2 Takings Not Resulting in Termination . If both Landlord and Tenant elect not to exercise any right granted hereunder to terminate this Lease in connection with a taking, or the Lease is not terminable in connection with a taking. Tenant shall continue to occupy that portion of the Premises which was not taken, and (a) at Landlord's cost and expense and as soon as reasonably possible, Landlord will restore the Premises on the land remaining to a complete unit of like quality and character as existed prior to such taking; and (b) the Minimum Annual Rental provided for in Section 3.h and Article 9 shall be reduced on an equitable basis, taking into account the relative value of the portion of the Premises taken as compared to the portion remaining. Tenant hereby waives any statutory rights of termination that may arise by reason of any partial taking of the Premises under the power of eminent domain. 

 

23.3 Award . If this Lease is terminated under Section 23.1, or modified under Section 23.2, Landlord shall be entitled to receive the entire condemnation award for the taking of all real property interests in the Premises. The Rent and other charges for the last month of Tenant's occupancy shall be prorated and Landlord shall refund to Tenant any rent or other charges paid in advance. Notwithstanding the foregoing and provided Tenant's award does not reduce or affect Landlord's award, Tenant's right to receive a condemnation award for the taking of its merchandise, Personal Property, goodwill, relocation expenses and/or interests in other than the real property taken shall not be affected in any manner by the provisions of this Section 23.3 

 

23.4 Transfer Under Threat of Taking . For the purposes of this Article 23, a voluntary sale or conveyance under threat of and in lieu of condemnation shall be deemed a taking under the power of eminent domain. reconstruction or replacement thereof. 

 

24. COMMON AREAS . 

 

24.1 Use of Common Areas . Tenant and its employees and invitees are, except as otherwise specifically provided in this Lease or the Office Center rules and regulations or as otherwise designated from time to time by Landlord, authorized to use the Common Areas in common with other persons during the Term. Landlord agrees that the Common Areas shall be initially constructed on the areas generally shown on Exhibit "A", and, subject to the preceding sentence, shall be maintained and operated at all times following completion thereof for the benefit and/or use of the customers and patrons of Tenant and of other tenants, owners and occupants of the Office Center. The original construction and installation of the Common Areas shall be at Landlord's expense. 

 

	 
	 	 	 
	

	 

 

24.2 Landlord's Maintenance Responsibilities; Common Area Costs . Landlord shall keep the Common Areas and Office Center neat, clean and orderly, properly lighted and landscaped, and shall repair any damage to Common Area and Office Center facilities. Notwithstanding the foregoing, all expenses incurred by Landlord in connection with the operation, repair, cleaning and maintenance of the Common Areas and the Office Center ("Common Area Costs") shall be charged and prorated in the manner set forth in this Article 24. 

 

Common Area Costs shall include without limitation, all sums expended in connection with the Common Areas and Office Center for: general maintenance and repairs; resurfacing; painting, restriping; cleaning; trash removal, snow and ice removal, sweeping and janitorial services; lighting, HVAC and other utility expenses; maintenance, repair, cleaning and replacement of public toilet rooms, music program equipment and loudspeakers, sidewalks, stairways, curbs. Office Center signs, sprinkler systems, planting and landscaping, floors, walls ceilings, roofs, skylights, windows, directional signs, markers and bumpers, fire protection systems and equipment (including fire sprinklers), security systems, lighting systems and fixtures (including replacement of tubes and bulbs), storm drainage systems, plumbing, electrical, HVAC and other utility systems which do not exclusively serve the interior of tenants' premises, and all mechanical equipment (including automatic door openers, escalators and elevators); personnel to implement the foregoing services, including, if Landlord deems necessary, the cost of security guards; all on-site costs and personnel expenses of Landlord incurred to manage the Office Center (which may be contracted for with third parties); all real (as generally defined in Section 9.3b of this Lease) and personal (as generally defined in Section 18.3 of this Lease) property taxes and assessments on the improvements and land comprising the Common Areas and Office Center or any personalty in use on the Common Areas or Office Center; any reasonable sums paid to third parties for the purpose of seeking reduction of property taxes; any governmental imposition or surcharge imposed upon Landlord or assessed against any portion of the Common Areas or Office Center; depreciation on maintenance and operating machinery and equipment (if owned) and rental paid for such machinery and equipment (if rented); and premiums for adequate comprehensive general liability and property damage insurance covering Landlord's ownership and operation of the Common Areas and Office Center, fire and extended coverage insurance on the Common Areas and the Office Center (which may include earthquake and flood damage endorsements) and vandalism and plate glass insurance covering the Common Areas and Office Center. Common Areas Costs shall also include a charge for management of the Office Center as well a charge for appropriate reserves for the costs of repainting, re-roofing, landscape replacements, and resurfacing Common Areas. In addition. Common Area Costs shall include a sum to be payable to Landlord for supervision of the Common Areas and for accounting, bookkeeping and collection of Common Area Costs, in an amount equal to 10 of the total of all of the foregoing Common Area Costs incurred in each calendar year. Landlord may have any or all service and management performed in connection with the Common Areas and Office Center provided by an independent contractor(s). If Landlord acquires, constructs or makes available for common Area purposes land or improvements not shown as part of the Office Center on Exhibit "A", then Common Areas Costs shall also include all of the expenses itemized above incurred and paid in connection with such additional land or improvements. 

 

24.3 Method of Payment . Portions of the Office Center may be owned or leased by the occupants of those buildings designated from time to time by Landlord as "Other Owners " (hereinafter referred to as the "Other Owner Occupants"). The contributions of the Other Owner Occupants towards the Common Area Costs shall be credited toward payment of the entirety of the Common Area Costs and the balance of the Common Area Costs shall be prorated among the other tenants of the Office Center in the following manner: 

 

(i) From and after the date Rent has commenced and thereafter during the Term, Tenant shall pay to Landlord, on the first day of each calendar month, an amount estimated by Landlord to be Tenant's Proportionate Share of Common Area Costs for the period covered by such estimate. This estimated monthly charge may be adjusted by Landlord at the end of any calendar month on the basis of Landlord's experience and reasonably anticipated Common Area Costs 

 

(ii) Within 60 days following the end of each calendar year (or as soon thereafter as possible), Landlord shall furnish Tenant with a statement showing the actual total of Common Area Costs for the preceding year, the actual amount of Tenant's Proportionate Share of Common Area Costs for that year and the payments made by Tenant for that year under subparagraph (i) above. If Tenant's Proportionate Share of Common Area Costs exceeds the estimated payments made by Tenant under subparagraph (i) above. Tenant shall pay Landlord the deficiency within 10 days after receipt of such statement. If Tenant's estimated payments exceed Tenant's Proportionate Share of Common Areas Costs, Landlord shall offset the excess against payments thereafter coming due under subparagraph (i) above. There shall be an appropriate adjustment of Tenant's Proportionate Share of Common Area Costs as of the commencement of Rent and expiration of the Term. Landlord's and Tenant's obligations hereunder shall survive expiration of the Term. Tenant's failure to pay any sums due hereunder shall constitute a default under this Lease equivalent to a failure to pay Minimum Annual Rent when due. 

 

24.4 Control of Common Areas . Landlord shall have the right at all times to determine the nature and extent of the Common Areas and to make changes from time to time which in Landlord's opinion are desirable and in the best interests of all persons using the Common Areas. Landlord's rights hereunder include without limitation, the right to install, remove, relocate and change driveways, entrances, exists, automobile parking spaces, the direction and flow of traffic, prohibited areas and reserved parking areas, landscaped areas, utilities and all facilities of the foregoing. Landlord shall have exclusive control of the Common Areas, and may, without limitation, lease space within the Common Areas to tenants for the sale of merchandise or services, and permit 

advertising displays, educational displays and entertainment in the Common Areas; provided, however, none of the foregoing shall materially adversely affect the accessibility of the Premises. Landlord may at any time and from time to time during the Term exclude and restrain any person from use or occupancy of the Common Areas, except for bona fide customers, patrons and service suppliers of Tenant and other tenants and occupants of the Office Center who use the Common Areas in accordance with the rules and regulations then established by Landlord. The rights of Tenant under this Article 24 shall at all times be subj ect to the rights of Landlord, the other tenants of Landlord and the Other Owners and occupants of the Office Center to use the Common Areas in common with Tenant. Tenant shall not create or permit any obstructions in the Common Areas and shall permit its customers, patrons and service suppliers to use the Common Areas only for normal parking and ingress and egress to and from the Building occupied by Tenant. 

	 
	 	 	 
	

	 

 

24.5 Rules and Regulations . Landlord shall have the right to establish, and from time to time change, alter and amend, and to enforce against Tenant and the other users of the Common Areas, such reasonable rules and regulations (including the exclusion of employees' parking within certain Common Areas) as Landlord may deem necessary or advisable for the proper and efficient operation and maintenance of the Common Areas and Office Center. The rules and regulations may include, without limitation, the hours during which the Common Areas, including any enclosed mall, shall be open for use. If incorporated as apart of this Lease as of the effective date of this Lease, Tenant shall comply with the Rules and Regulations attached to this Lease as Exhibit "B". 

 

24 6 Exclusive and Shaded Parking . Landlord shall at all times have the right to designate a particular parking area to be used by tenant's and their employees on an exclusive basis including areas serviced by a shade structure where Landlord receives rent for exclusive areas, and any such designation may be changed by Landlord from time to time. Tenant and its employees shall park their cars only in those portions of the Common Areas, if any, not designated for that purpose by Landlord Tenant shall furnish Landlord from time to time with an accurate current list of its and all its employees' automobile license plate numbers within 15 days after taking possession of the Premises and thereafter within 5 days after any change in the accuracy of the list. If Tenant or its employees park their cars in said exclusive designated parking areas. Landlord may charge Tenant $25 00 per day per car for each such violation and shall have the right to have any such car towed away. All amounts due under the provisions of this Section 24.6 shall be payable by Tenant within 10 days after demand by Landlord. In a separate Reserved Parking Agreement between Landlord and Tenant, Tenant shall for a initial monthly fee of Thirty five dollars ($35.00) have access to three (3) said spaces. Reserved Parking rent for the first two months shall be abated. Tenant shall have the right to designate at Tenants expense with Landlord's approval thereof, two (2) parking spaces immediately adjacent to the demised Premises as "Reserved " for Chicago Title Insurance Company. 

25. DEFAULTS BY TENANT 

 

25.1 Events of Default . Each of the following shall constitute a material default and breach under this Lease: 

 

(a)  If Tenant is any time in default of its obligation to pay any Rent or other charges, and such default continues for more than 5 days; 

(b) If Tenant is in default in the prompt and full performance of any other of its obligations under this Lease and such default continues more than 10 days after written notice specifying the particulars of such default; 

 

(c) INTENTIONALLY DELETED 

(d)  (i) If Tenant or any guarantor of this Lease makes a general assignment or general arrangement for the benefit of creditors; or (ii) if a petition for adjudication of bankruptcy or for reorganization or rearrangement is filed by or against Tenant or any guarantor and is not dismissed within 20 days; or (iii) if a trustee or receiver is appointed to take possession of substantially all of Tenant's assets located at the Premises or of Tenant's interest in this Lease and possession is not restored to Tenant within 20 days; or (iv) if substantially all of Tenant's assets located at the Premises or of Tenant's interest in this Lease is subjected to attachment, execution or other judicial seizure which is not discharged within 20 days. If a court of competent jurisdiction determines that any of the acts described in this subparagraph (d) is not a default under this Lease, and a trustee is appointed to take possession of Tenant's assets or if Tenant remains a debtor in possession and such trustee or Tenant transfers Tenant's interest in this Lease, then Landlord shall receive, as additional rent, the excess, if any, of the rent (or any other consideration) paid in connection with such assignment or sublease over the Rent payable by Tenant hereunder; or 

 

(e)  If any guarantor of the Lease revokes or otherwise terminates, or purports to revoke or otherwise terminate, any guaranty of all or any portion of Tenant's obligations under the Lease. Unless otherwise expressly provided, no guaranty of the Lease is revocable. 

25.2 Remedies Upon Breach of Lease . On the occurrence of any breach of this Lease by Tenant, Landlord may, at any time thereafter, with or without notice or demand and without limiting Landlord in the exercise of any right or remedy that Landlord may have: 

 

(a) Terminate Tenant's right to possession of the Premises and reenter the Premises by any lawful means, in which case this Lease shall terminate. In such case. Tenant shall immediately surrender possession of the Premises to Landlord; or 

 

(b) Maintain Tenant's right to possession of the Premises, in which case this Lease shall continue in effect whether or not Tenant has abandoned the Premises. In such event, Landlord shall be entitled to enforce all Landlord's rights and remedies under this Lease, including the right to recover the Rent as it becomes due and Landlord shall have the right to occupy or re-let the whole or any part of the Premises for the account of Tenant; or 

	 
	 	 	 
	

	 

 

(c) Pursue any other remedy now or hereafter available to Landlord under the laws or judicial decisions of the state in which the Office Center is located. If Landlord reenters the Premises under the provisions of subparagraph (b) above, Landlord shall not be deemed to have terminated this Lease, or the liability of Tenant to pay any Rent or other charges that are due or thereafter accruing, or Tenant's liability for damages under any of the provisions hereof. In the event of any entry or taking possession of the Premises as aforesaid. Landlord shall have in addition to its rights under Section 25.4 hereof, the right, but not the obligation, to remove from the Premises any personal property located therein and to place it in storage at a public warehouse at the expenses and risk of Tenant. 

 

Notwithstanding any other term or provision hereof to the contrary, this Lease shall terminate on the occurrence of any act which affirms Landlord's intention to terminate this Lease as provided in this Section 25.2, including the filing of an unlawful detainer action against Tenant. On such termination. Landlord's damages for default shall include all costs and fees, including reasonable attorneys' fees, incurred by Landlord in connection with the filing, commencement, pursuing or defending of any action in any bankruptcy court or other court with respect to the Lease, the obtaining of relief from any stay in bankruptcy restraining any action to evict Tenant, or the pursuing of any action with respect to Landlord's right to possession of the Property. All such damages suffered (apart from Minimum Annual Rent and other Rent payable hereunder) shall constitute pecuniary damages that must be reimbursed to Landlord prior to assumption of the Lease by Tenant or any successor to Tenant in any bankruptcy or other proceeding. Landlord's exercise of any right or remedy shall not prevent it from exercising any other right or remedy. 

 

It is understood and agreed that this Lease is a lease of real property in a Office Center within the meaning of 11 U.S.C. Section 365(b)(3) of the Bankruptcy Code. 

 

25.3 Landlord's Damages . If Landlord elects to terminate this Lease and Tenant's right to possession of the Premises in accordance with the provisions of this Lease, Landlord may recover from Tenant as damages, all of the following: 

 

(I) The worth at the time of award of any unpaid Rent and other charges which has been earned at the time of such termination; plus 

 

(ii) The worth at the time of award of the amount by which the unpaid Rent and other charges which would have been earned after termination until the time of award exceeds the amount of such rental loss that Tenant proves Landlord could have reasonably avoided; plus 

 

(iii) The worth at the time of award of the amount by which the unpaid Rent and other charges which Tenant would have paid for the balance of the Term after the time of award exceeds the amount of such rental loss that Tenant proves Landlord could have reasonably avoided; plus 

 

(iv) Any other amount necessary to compensate Landlord for all the detriment proximately caused by Tenant's failure to perform its obligations under this Lease or which in the ordinary course of things would be likely to result therefrom, including without limitation, any costs or expenses incurred by Landlord in (a) maintaining or preserving the Premises after such default, (b) recovering possession of the Premises, including reasonable attorneys' fees therefor, (c) expenses ofreletting the Premises to a new tenant, including necessary renovations or alterations of the Premises, reasonable attorneys' fees incurred, and leasing commissions incurred; plus 

 

(v) Such other amounts in addition to or in lieu of the forgoing as may be permitted from time to time by the laws of the State where the Office Center is located. As used in subparagraphs (i) and (ii) above the "worth at the time of award" is computed by allowing interest on unpaid amounts at the rate of 10 per annum. As used in subparagraph (iii) above, the "worth at the time of award" is computed by discounting such amount at the discount rate of the Federal Reserve Bank located nearest to the Office Center in effect at the time of award, plus 1%. 

 

For purposes of this Article 25, all Rent other than Minimum Annual Rent, shall, for purposes of calculating any amount due under the provisions of subparagraph (iii) above, be computed on the basis of the average monthly amount of Rent payable by Tenant during the immediately preceding 36 month period, except that if it becomes necessary to compute such rental before such 36 months of the Term has expired, then such Rent shall be computed on the basis of the average monthly amount of Rent payable during such shorter period. 

 

25.4 Fixtures and Personal Property . In the event of Tenant's default, all of Tenant's merchandise. Fixtures and other Personal Property shall remain on the Premises, and during the period of default Landlord shall have the right to take the exclusive possession of such items and to use them free of charge until all defaults are cured, or, at Landlord's option, to require Tenant to forthwith remove such items. 

	 
	 	 	 
	

	 

LANDLORD: 

Val Vista-Gateway, LLC a Nevada limited liability company 

By: S.B.&W. Development-Mesa, LLC a California limited liability company 

It's Managing Member 

By; Holt Ave, LLG a California limited liability company. Co-managing member 

/s/ [name unknown]____________________   Date: 7/11/03 

___________________________________ 

By: Caritas Partners Inc. a California corporation. Co-managing member 

/s/ Gregory B. Stewart__________________   Date: 7/18/03 

Gregory B Stewart, President 

TENANT: HumaTech, Inc., an Illinois corporation 

/s/ David G. Williams____________________  Date: 7/10/03 

It's: _________________________________ 

Title: ____President____________________  

 

SEE YOUR ATTORNEY - THIS LEASE IS TO BE GIVEN TO YOUR ATTORNEY FOR REVIEW AND APPROVAL BEFORE YOU SIGN IT. BECAUSE EACH LEASE TRANSACTION IS UNIQUE, AND THE BUSINESS AND LEGAL CONCERNS OF EACH PART ARE UNIQUE, PHOENIX COMMERCIAL ADVISORS, AND LANDLORD CANNOT AND DOES NOT MAKE ANY REPRESENTATION OR RECOMMENDATION CONCERNING THE LEGAL EFFECT, LEGAL SUFFICIENCY, OR TAX CONSEQUENCES OF THIS LEASE. THESE ARE QUESTIONS FOR YOUR ATTORNEY AND FINANCIAL ADVISORS. 

IN ANY REAL ESTATE TRANSACTION, IT IS RECOMMENDED THAT YOU CONSULT WITH A PROFESSIONAL, SUCH AS A CIVIL ENGINEER, INDUSTRIAL HYGIENIST OR OTHER PERSON WITH EXPERIENCE IN EVALUATING THE CONDITION OF THE PROPERTY, INCLUDING THE POSSIBLE PRESENCE OF ASBESTOS, HAZARDOUS MATERIAL AND UNDERGROUND STORAGE TANKS. 

	 
	 	 	 
	

	 

 

EXHIBIT A 

DESCRIPTION 

OFA 

7.5272 ACRE 

(PARCEL 3) 

 

THAT PORTION OF THE SOUTHWEST QUARTER OF SECTION 33, TOWNSHIP 1 

NORTH, RANGE 6 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, 

MARICOPA COUNTY, ARIZONA, ALSO BEING A PART OF LOT 2, BASELINE 

COMMERCIAL CENTER ACCORDING TO BOOK 307 OF MAPS, PAGE 31. RECORDS 

OF MARICOPA COUNTY, ARIZONA BEING MORE PARTICULARLY DESCRIBED AS 

FOLLOWS: 

COMMENCING AT THE SOUTHWEST CORNER OF SAID SECTION 33; 

THENCE NORTH 88°48'18" EAST, ALONG THE SOUTH LINE OF THE SOUTHWEST 

QUARTER OF SAID SECTION 33, A DISTANCE OF 728.50 FEET; 

THENCE NORTH OI°11'42" WEST A DISTANCE OF 55.00 FEET TO THE POINT OF 

BEGINNING; 

THENCE SOUTH 88°48' 18" WEST» PARALLEL TO AND 55.00 FEET NORTH OF THE 

SOUTH LINE QF SAID SOUTHWEST QUARTER, A DISTANCE OF 312.68 FEET; 

THENCE NORTH 00°20'40" WEST A DISTANCE OF 245.00 FEET; 

THENCE SOUTH SS^S'IS" WEST A DISTANCE OF 118.98 FEET; 

THENCE NORTH Ol0!!^" WEST A DISTANCE OF 348.33 FEET; 

THENCE SOUTH 88°48'18" WEST A DISTANCE OF 235.85 FEET; 

THENCE NORTH 00°20'40" WEST, PARALLEL TO AND 55.00 FEET EAST OF THE 

WEST LINE OF SAID SOUTHWEST QUARTER, A DISTANCE OF 13.33 FEET; 

THENCE NORTH SSWIS" EAST A DISTANCE OF 235.65 FEET; 

THENCE NORTH OI°ir42" WEST A DISTANCE OF 267.88 FEET; 

THENCE SOUTH 89°42' 10" EAST A DISTANCE OF 256.58 FEET; 

THENCE SOUTH 11°09'30" EAST A DISTANCE OF 53.34 FEET; 

THENCE SOUTH 53°44'20" EAST A DISTANCE OF 204.45 FEET; 

THENCE SOUTH 01°11'42" EAST A DISTANCE OF 690.96 FEET TO THE POINT OF 

BEGINNING. 

CONTAINING 327,886 S.F. OR 7.5272 ACRES OF LAND, MORE OR LESS. 

PREPARED BY: 

O'NEILL ENGINEERING, INC.                                       [Registered Land Surveyor seal and signature]

2001 WEST CAMELBACK ROAD 

PHOENIX, AZ 85015 

JOB NO. 3132 

	 
	 	 	 
	

	 

 

EXHIBIT A-l 

FOR DEMONSTRATION PURPOSES ONLY, NOT TO SCALE, NOT AS 

[DIAGRAM]

 

 

	 
	 	 	 
	

	 

 

EXHIBIT "B" 

 

RULES AND REGULATIONS 

The following Rules and Regulations are hereby incorporated into Tenant's Lease by this reference. By execution of the Lease Agreement, Tenant agrees to abide by all of the following Rules and Regulations as might be adopted, or implemented by Landlord at its sole discretion from time to time. 

Landlord, at its discretion, may also adopt or implement Rules and Regulations that will have retroactive effect on the operation of the Office Center. 

The use of the Leased Premises, the Office Center or the Common Area by Tenant and Tenant's agents, employees, servants, visitors and invitees shall be strictly subject to the following Rules and Regulations. 

(1) Landlord shall have the right and authority to designate specific areas within the Office Center or in reasonable proximity thereto in which automobiles and other transportation vehicles owned by Tenant, or Tenant's employees, servants, agent, licensees and concessionaires shall be parked. Tenant shall furnish to Landlord upon request a complete list of all vehicle license numbers operated by Tenant, or Tenant's employees, servant, agents, licensees or concessionaires. 

(2)All loading and unloading of goods shall be done only in the areas and through the entrances as shall be designated from time to time for such purposes by Landlord. 

(3) The delivery or shipping of merchandise, supplies and fixtures to and from the Premises shall be subject to such Rules and Regulations as in the sole discretion of Landlord shall be necessary for the proper operation of the Office Center. 

(4) No person shall use any utility area, truck facility or other area reserved for use in connection with the conduct of business except for the specific purpose for which such area is designed. 

(5) Except as permitted in Tenant's Lease, or except as permitted by Landlord's prior written consent, no person shall and Tenant shall not permit within the Common Area: 

(a) Vend, peddle or solicit orders for sale or distribution of any merchandise, device, service , periodical, book, pamphlet or other matter whatsoever; 

(b) Exhibit any sign, placard, banner, notice or other written material; 

(c) Distribute any circular, booklet, handbills, placard or other materials; 

(d) Solicit membership in any organization, group or association or contribution for any purpose; 

(e) Parade, patrol, picket, demonstrate or engage in any conduct that might tend to interfere with or impede the use off the Common Area by Landlord or any occupant of the Office Center, create a disturbance, attract attention or harass, annoy, disparage, or be detrimental to the interests of any business establishments within the Office Center. 

(f) Use the Common Area for any purpose when none of the business establishments within the Office Center is open for business; 

(g) Throw, discard or deposit any paper, glass or extraneous matter of any kind, except in designated receptacles, or create litter or hazards of any kind; 

(h) Deface, damage or demolish any sign, light standard or fixture, landscaping material or other improvements within the Common Area or the Office Center; and 

(i) Solicit any other business or display any merchandise. 

(6) The outside areas immediately adjoining Tenant's Premises shall be kept clean and free from dirt and rubbish by Tenant to the complete satisfaction of Landlord. All refuse, trash and garbage shall be removed by Tenant on a daily basis and not permitted to accumulate. 

(7) The Common Area plumbing facilities shall not be used for any purpose other than that for which they are constructed, and no foreign substance of any kind shall be thrown therein, and the expense of any breakage, stoppage or damage resulting from a violation of this provision shall be borne by Tenant, if Tenant or its employees, agents or invitees shall have caused it. 

(8) All floor area, including vestibules, entrances and exits, doors, fixtures, windows and plate glass shall be maintained in a safe, neat and clean condition. 

(9) No portion of the common Area or the Office Center shall be used for any lodging or illegal purposes. 

	 
	 	 	 
	

	 

 

(10) The sidewalk, halls, passages, exits, entrances, elevators, shopping malls, escalators and stairways of the Common Area or the Office Center shall not be obstructed by any Tenant or used by any Tenant for any purpose other than for ingress to and egress from their respective Premises. The halls, passages, exits entrances, elevators, shopping malls, escalators and stairways are not for the use of the general public and Landlord shall at all cases retain the right to control and prevent access thereto of all persons whose presence in the judgment of Landlord shall be prejudicial to the safety, character, reputation and interest of the Office Center and its tenants, provided that nothing herein contained shall be construed to prevent such access to persons with whom any Tenant normally deals in the ordinary course of its business, unless such persons are engaged in illegal activities. No Tenant or employee or invitee of any Tenant shall go upon the roof of any building, or Common Area of the Office Center. 

(11) In the case of any invasion, mob, riot, public excitement or other circumstances rendering such action advisable in Landlord's sole discretion. Landlord reserves the right to prevent access to the Common Area and Office Center during the continuance of the same by such action as Landlord may deem appropriate, including closing entrances to the Office Center and Common area. 

(12) No Tenant shall place or permit any radio or television antenna, loudspeaker, amplifier or other device in the Common Area or where the same can be seen or heard in the Common Area without the prior written consent of Landlord. 

(13) No person shall use any part of the Common Area for any purpose other than those for which the Common Area is intended. 

(14) No part of the Common Area shall be used for storing or maintaining any material or property, whether on a temporary basis or otherwise and no action shall be taken in the common Area which in the exclusive judgment of Landlord would constitute a nuisance or would disturb or endanger other tenants of the Office Center or unreasonably interfere with their use of their respective premises or the Common Areas, nor do anything which would tend to injure the reputation of the Office Center. 

(15) Any repairs, maintenance or replacements to the Common Area required to be made by Landlord that are occasioned by the act or negligence of any Tenant, its agents, employees, sub-tenant, licensees and concessionaires, shall be paid for by such Tenant upon demand to the extent not covered by insurance proceeds paid to Landlord therefore. 

(16) No Tenant shall make any alteration, addition or improvement to or remove any portion of the Common Area, and no Tenant shall make any changes to or paint any portion of the Common Area, or install any lighting, decorations or paintings in or to the Common Area, or erect or install any signs, banners, placards, decorations or advertising media of any type in the Common Area except as permitted by the Lease. The rights and remedies given to Landlord in this Article shall be in addition and supplemental to all other rights or remedies which Landlord may have under the laws in force when the default occurs. 

25.5 No Waiver . The waiver by Landlord of any breach by Tenant of any term, covenant or condition contained in this Lease shall not be deemed to be a waiver of such term, covenant or condition, of any subsequent breach thereof, or of any other term, covenant or condition of this Lease. The subsequent acceptance of Rent hereunder by Landlord shall not be deemed to be a waiver of any preceding breach by Tenant of any term, covenant or condition of this Lease or of any right of Landlord to a forfeiture of the Lease by reason of such breach, regardless of Landlord's knowledge of such preceding breach at the time of acceptance of such Rent. No term, covenant or condition of this Lease shall be deemed to have been waived by Landlord unless such waiver is in writing and signed by Landlord. 

26 DEFAULTS BY LANDLORD . 

If Landlord fails to perform any covenant, condition, or agreement contained in this Lease within 30 days after receipt of written notice from Tenant specifying such failure (or if such failure cannot reasonably be cured within 30 days, if Landlord does not commence to cure the failure within that 30 day period), then such failure shall constitute a default hereunder and Landlord shall be liable to Tenant for any damages sustained by Tenant as a result of Landlord's default; provided, however, it is expressly understood and agreed that if Tenant obtains a money judgment against Landlord resulting from any default or other claim arising under this Lease, that judgment shall be satisfied only out of the rents, issues, profits, and other income actually received on account of Landlord's right, title and interest in the Premises, Building and/or Office Center, and no other real, personal or mixed property of Landlord (or of any of the partners which comprise Landlord, or of partners or principals of such partners comprising Landlord, if any, or of Landlord's officers, shareholders or directors, if any) wherever situated, shall be subject to levy, attachment or execution, or otherwise used to satisfy any such judgment. Tenant hereby waives any right to satisfy a judgment against Landlord except from the rents, issues, profits, and other income actually received on account of Landlord's right, title and interest in the Premises, Building and/or Office Center. 

If, after notice to Landlord of default. Landlord (or any first mortgagee or first deed of trust beneficiary of Landlord) fails to cure the default as provided below, then Tenant shall have the right to cure that default at Landlord's expense. In such case Landlord shall pay the reasonable cost of such cure promptly following receipt of a bill from Tenant itemizing the cost of such cure. Tenant shall not, on any account of Landlord's default, have the right to terminate this Lease or to withhold, reduce or offset any cost of such cure against any payments of Rent or any other charges due and payable to Landlord under this Lease, except as otherwise specifically provided in this Lease. 

	 
	 	 	 
	

	 

 

Tenant agrees to send by certified or registered mail to any mortgagee or deed of trust beneficiary of the Office Center provided the address has been furnished to Tenant, a copy of any notice of default served by Tenant on Landlord. If Landlord fails to cure such default within the time provided for in this Lease, Tenant shall provide any such mortgagee or beneficiary with notice of such failure and such mortgagee or beneficiary shall have an additional 30 days following receipt of such notice to cure such default; provided that if such default cannot reasonably be cured within that additional 30 day period, then such mortgagee or beneficiary shall have such additional time to cure the default as is reasonably necessary under the circumstances. 

27. ATTORNEYS' FEES. 

If at any time after the date hereof either Landlord or Tenant institutes any action or proceeding against the other, relating to the provisions of this Lease or any default hereunder, the losing party in such action or proceeding shall reimburse the winning party for its reasonable expenses of attorneys' fees and all costs and disbursement incurred, including, without limitation, any such fees, costs or disbursements incurred on any appeal from such action or proceeding. Subject to the provisions of local law, the winning party shall recover all such fees, costs or disbursements as costs taxable by the court or arbiter in the action or proceeding itself without the necessity for a cross-action by the winning party. 

28. SUBORDINATION - ATTORNMENT. 

28.1 Subordination . Within 10 days after receipt of a written request from Landlord, any first mortgagee or first deed of trust trustee or beneficiary of Landlord, or any lessor of Landlord, Tenant shall, in writing, subordinate its rights under this Lease to the lien or security interest of the first mortgage or deed of trust (including all future advances made thereunder subsequent to the effective date of this Lease), the interest of any lease in which Landlord is the lessee, or any Matters of Record or REA that may burden the Premises, Building, Office Center, Property or any future improvements made to the Property. Said written subordination shall be in the form of a reasonable Subordination and Attomment Agreement and said Subordination and Attomment Agreement shall be notarized by Tenant at Tenant's expense. Failure of Tenant to timely enter into said Subordination and Attomment Agreement shall be deemed a default of this Lease. 

28.2 Attomment . Pursuant to 28.1 above, if Landlord's interest in the Premises is acquired by any ground lessor, beneficiary under a deed of trust, mortgagee or purchaser at a foreclosure sale, then Tenant shall upon request, attorn to such transferee of or successor to Landlord's interest in the Premises and recognize such transferee or successor as Landlord under this Lease, provided such transferee or successor accepts the Premises subject to this Lease. 

28.3 Estoppel Certificate . Tenant shall, at any time and from time to time, upon not less than 10 days' prior written notice from Landlord, execute, acknowledge and deliver to Landlord a written statement certifying (i) that this Lease represents the entire agreement between Landlord and Tenant, and is unmodified and in full force and effect (or, if modified, stating the nature of such modification and certifying that this Lease, as so modified, is in full force and effect), (ii) the dates to which the Rent and other charges are paid in advance, if any; (iii) the Commencement Date and expiration date of the Lease Term, (iv) whether Tenant has assigned or transferred this Lease or any interest of Tenant therein; and (v) that there are not, to Tenant's knowledge, any uncured defaults on the part of Landlord hereunder and that Tenant has no right of offset, counterclaim or deduction against Rent, or specifying such defaults if any are claimed together with the amount of any offset, counterclaim or deduction alleged by Tenant. Any such Tenant statement may be relied upon by any prospective purchaser or lender upon the security of the real property of which the Building and the Premises are a part. Tenant's failure to deliver such statement within the time required shall be conclusive and binding upon Tenant that (a) this Lease is in full force and effect, without modification except as may be represented by Landlord, (b) there are no uncured defaults in Landlord's performance and that Tenant has no right of offset, counterclaim or deduction against Rent, and (c) no more than one month's Rent has been paid in advance. 

29. QUIET POSSESSION . 

Landlord agrees that Tenant, upon paying the Rent and timely performing its obligations under this Lease, may quietly have, hold and enjoy the Premises during the Term or any extension thereof; subject, however, to any rights of entry specifically granted to Landlord hereunder, any Matters of Record or REA and any mortgages, deeds of trust, ground or underlying leases, agreements, encumbrances and/or other Matters of Record to which this Lease is subordinate. 

30. CAPTIONS; JOINT AND SEVERAL LIABILITY . 

30.1 Captions . The captions of the Articles and Sections of this Lease are for convenience only, are not operative parts of this Lease and do not in any way limit or amplify the terms and provisions of this Lease. 

30.2 Joint and Several Liability . If two or more persons or entities execute this Lease as Landlord or Tenant then such persons of entities shall be jointly and severally liable for compliance with and performance of all the terms, covenants and provisions of this Lease. 

	 
	 	 	 
	

	 

 

31. NOTICES. 

Wherever this Lease requires or permits notice or demand to be given by either party to the other, such notice or demand shall be in writing and given or served either personally or in writing forwarded by certified mail, return receipt requested, or overnight mail or commercial carrier (i.e. 

Federal Express/UPS), addressed to the parties at the addresses specified in Section 3.g. hereof. Either party may change such address by written notice to the other as herein provided. 

32. OBLIGATIONS OF SUCCESSORS . 

Except as otherwise provided herein, or in any Subordination and Attomment Agreement, all of the provisions of this Lease shall bind and inure to the benefit of the parties hereto, and their respective heirs, legal representatives, successors and assigns. 

33. CONSENT OF LANDLORD AND TENANT . 

Wherever in this Lease, consent or approval is required from either party to any action by the other, such consent or approval shall be given in writing and shall not be unreasonably withheld, unless otherwise expressly permitted in this Lease. Landlord shall not be deemed to have withheld its consent unreasonably where Landlord's right to give its consent is dependent on Landlord obtaining the consent of any other person, agency or authority having the right to withhold its consent pursuant to any agreement or law and such person, agency or authority does withhold its consent. If Landlord or Tenant unreasonably fails to give any such consent, the other party shall be entitled to specific performance in equity and shall have such other remedies as are reserved to it under this Lease, but in no event shall Landlord or Tenant be responsible in monetary damages for failure to give consent unless such consent is withheld maliciously or in bad faith. 

 

34. SECURITY DEPOSIT. 

34.1 Payment of Security Deposit . Tenant has deposited with Landlord the sum specified in Section 3.k hereof as the "Security Deposit", receipt of which is hereby acknowledged. The Security Deposit shall be held by Landlord without liability for interest as security for the faithful performance by Tenant of all of its obligations under this Lease. The Security Deposit shall not be mortgaged, assigned, transferred or encumbered by Tenant without the prior written consent of Landlord and any such action by Tenant without such consent shall be without force and effect and not binding on Landlord. 

34.2 Application of Security Deposit . If any Rent herein reserved or any other sum payable by Tenant to Landlord is overdue and unpaid, or paid by Landlord on Tenant's behalf, or if Tenant fails to perform any of its obligations under this Lease, then Landlord may, at its option and without prejudice to any other remedy which Landlord may have, appropriate and apply the entire Security Deposit or so much as is necessary to compensate Landlord for loss of Minimum Annual Rent or additional rent, or other damages sustained by Landlord due to such default by Tenant. Tenant shall forthwith upon demand restore the Security Deposit to the original sum deposited. If Tenant complies with all of the terms of the Lease and promptly pays when due all Rent and all other sums payable by Tenant under this Lease, the Security Deposit (or the balance thereof remaining) shall be returned in full to Tenant not later than 14 days following the end of the Term and delivery of possession of the Premises to Landlord. 34.3 Bankruptcy. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for the earliest periods prior to the filing of such proceedings. 

34.4 Transfer of Landlord's Interest . Landlord may deliver the funds deposited hereunder by Tenant to the purchaser of Landlord's interest in the Premises and Landlord shall thereupon be discharged from any further liability to Tenant for the Security Deposit. This provision shall also apply to any subsequent transfers of Landlord's interest in the Premises. In the case of such transfer of the Security Deposit, Landlord shall give written notice to Tenant of any existing claims against the Security Deposit and of the name and address of Landlord's successor. 

35. MISCELLANEOUS. 

35.1 Relationship of the Parties . Nothing contained in this Lease shall be deemed to construed to create a partnership or joint venture between Landlord and Tenant or between Landlord and any other party, or cause Landlord to be responsible in any way for the debts or obligations of Tenant or anyone else. 

35.2 Severability . If any provision of this Lease is determined to be void by any court of competent jurisdiction, such determination shall not affect any other provision of this Lease and all such other provisions shall remain in full force and effect. It is the intention of the parties that if any provision of this Lease is capable of two constructions, one of which would render the provision void and the other of which would render the provision valid, then the provision shall have the meaning which renders it valid. 

35.3 Corporate Authority ; Partnership Authority. If Tenant is a corporation, each person signing this Lease on behalf of Tenant represents and warrants that he has full authority to do so and that this Lease binds the corporation. Within 30 days after this Lease is signed. Tenant shall deliver to Landlord a certified copy of a resolution of Tenant's Board of Directors authorizing the execution of this Lease or other evidence of such authority reasonably acceptable to Landlord. If Tenant is a partnership, each person or entity signing this Lease for Tenant represents and warrants that he or it is a general partner of the partnership, that he or it has full authority to sign for the partnership and that this Lease binds the partnership and all general partners of the partnership. If Tenant is a Limited Liability Company, each person or entity signing this Lease for Tenant represents and warrants that he or it is a Managing Member of the Limited Liability Company, that he or it has full authority to sign for the Limited Liability Company and that this Lease binds the Limited Liability Company and all the Members of the Limited Liability Company. Tenant shall give written notice to Landlord of any Managing Members withdrawal or addition. Within 30 days after this Lease is signed. Tenant shall deliver to Landlord a copy of Tenant's recorded statement of partnership, certificate of limited partnership or other evidence of partnership or formation of its good standing as a Limited Liability Company satisfactory to Landlord. 

	 
	 	 	 
	

	 

 

35.4 Entire Agreement . It is understood that there are no oral or written agreements or representations between the parties hereto affecting this Lease, and that this Lease supersedes and cancels any and all previous negotiations, arrangements, representations, brochures, displays, projections, estimates, agreements and understandings, if any, made by or between Landlord and Tenant with respect to the subject matter thereof, and none thereof shall be used to interpret, construe, supplement or contradict this Lease. This Lease, it's exhibits, addenda and all amendments hereto, are the only agreement between the parties hereto. All negotiations and oral agreements acceptable to both parties have been merged into and are included in this Lease. 

There are no other representations, covenants or warranties between the parties and any reliance on representations of a party is based solely upon the express representations, covenants and warranties contained in this Lease. Although the printed provisions of this Lease were drawn by Landlord, the parties agree that this circumstance alone shall not create any presumption, canon of construction or implication favoring the position of either Landlord or Tenant. The parties agree that any deletion of language from this Lease prior to its mutual execution by Landlord and Tenant shall not be construed to have any particular meaning or to raise any presumption, canon of construction implication, including, without limitation, any implication that the parties intended thereby to state the converse, obverse or opposite of the deleted language. 

35.5 Governing Law . The laws of the state where the Office Center is located shall govern the .validity, performance and enforcement of this Lease. 

35.6 Waiver of consent Limitations . A waiver of any breach or default under the Lease shall not be a waiver of any other breach or default. Landlord's consent to or approval of any act by Tenant requiring Landlord's consent or approval shall not be deemed to waive or render unnecessary Landlord's consent to or approval of any subsequent similar act by Tenant. 

35.7 Forge Majeure . The occurrence of any of the following events shall excuse performance of such obligations of Landlord or Tenant as are rendered impossible or reasonably impracticable to perform while such event continues: strikes; lockouts, labor disputes; acts of God; inability to obtain labor, materials or reasonable substitutes therefor; governmental delays, restrictions, regulations or controls; judicial orders; enemy or hostile governmental action; civil commotion; fire or other casualty; and other causes beyond the reasonable control of the party obligated to perform. Notwithstanding the foregoing, the occurrence of such events shall not excuse Tenant's obligations to pay Minimum Annual Rent and additional rent (unless the provisions of Article 23 apply) or excuse such obligations as this Lease may nevertheless otherwise impose on the party to obey, remedy or avoid, despite such event. If any work performed by Tenant or Tenant's contractor results in a strike, lockout and/or labor dispute, such strike, lockout and/or labor dispute shall not excuse Tenant's performance hereunder. 

35.8 Waiver of Redemption Rights . Tenant hereby expressly waives any and all rights of redemption granted by or under any present or future laws in the event Tenant is evicted from or dispossessed of the Premises for any cause, or in the event Landlord obtains possession of the Premises by reason of the violation by Tenant of any of the covenants and conditions of this Lease or otherwise. The rights given to Landlord herein are in addition to any rights that may be given to Landlord by any statute or otherwise. 

35.9 Amendments . To be effective and binding on Landlord and Tenant, any amendment, modification, addition or deletion to the provisions of this Lease must be in writing and executed by both parties in the same manner as the Lease itself. 

35.10 Right to Enter . Landlord and/or its authorized representatives shall have the right to enter the Premises at all reasonable times for the purpose of showing the Premises to prospective purchasers or lenders. 

35.11 Definition of Landlord . As used in this Lease, the term "Landlord" means only the current owner of the fee title to the Office Center or the leasehold estate under a ground lease of the Office Center at the time in question. Each Landlord is obligated to perform the obligations of Landlord under this Lease only during the time such Landlord owns such interest or title. Any Landlord who transfers its title or interest in the Office Center is relieved of all liabilities for the obligations of Landlord under this Lease to be performed on or after the date of transfer. 

35.12 Tenant's Financial Condition . Within 10 days after written request from Landlord, Tenant shall deliver to Landlord such financial statements as Landlord reasonably requires to verify the net worth of Tenant or any guarantor of Tenant. In addition, Tenant shall deliver to any lender designated by Landlord any financial statements required by such lender to facilitate the financing or refinancing of the Office Center. Tenant represents and warrants to Landlord that each such financial statement is a true and accurate statement as of the date of such statement. All financial statements shall be confidential and shall be used only for the purposes set forth in this Lease. 

	 
	 	 	 
	

	 

 

36. BROKERS. 

No Other Brokers . Tenant represents and warrants to Landlord that the brokers named in Section 3.b of this Lease are the only agents, brokers, finders or other parties with whom Tenant has dealt who are or may be entitled to any commission or fee with respect to this Lease. Further, Tenant shall hold Landlord harmless from any claims from agents, brokers, finders or other parties with whom Tenant has dealt with respect to this Lease. 

37. COMPLIANCE. 

Tenant hereto agrees to comply with all applicable federal, state and local laws, regulations, codes, ordinances and administrative orders having jurisdiction over the parties, property or the subject matter of this Agreement, including, but not limited to, the 1964 Civil Rights Act and all amendments thereto, the Foreign Investment in Real Property Tax Act, the Comprehensive Environmental Response Compensation and Liability Act, and The Americans With Disabilities Act. 

38. LANDLORD'S CONTINGENCY. 

Tenant hereby agrees and understands that this Lease is contingent upon Landlord purchasing the above-mentioned property as described in Exhibit A. Tenant also understands and agrees that this Lease is contingent upon Landlord's ability to obtain financing based on Landlord's estimated costs to construct the project. In the event that Landlord is to provide Tenant with a "Tenant Improvement Allowance" or other improvement funds pursuant to Exhibit "C" said funds are contingent upon Landlord's lenders approval, where said approval shall be solely at the discretion of Landlord's lender. 

LANDLORD AND TENANT has signed this lease on the dates set forth below. 

EXHIBIT "D" 

 

SIGN STANDARDS 

These standards have been established for the purpose of assuring a quality appearance for the Office Center. Conformance shall be strictly enforced and any installed nonconforming or unapproved signs shall be brought into conformance at the expense of the tenant. 

Landlord shall administer and interpret the standards: 

A. GENERAL REQUIREMENTS: 

1. Should Landlord approve the placement of a building facia sign. Tenant shall submit or cause to be submitted to Landlord for approval before fabrication at least three copies of detailed drawings covering the location, size, layout, design and color of the proposed sign, including all lettering and/or graphics. 

2. All permits for signs and their installation shall be obtained by Tenant or its representative from the City of Mesa. 

3. Tenant shall be responsible for the fulfillment of all requirements and specifications. 

B. GENERAL SPECIFICATIONS: 

1. Painted lettering shall not be permitted. 

2. Flashing, moving or audible signs shall not be permitted. 

3. All electrical signs and their installation must comply with all local building and electrical codes. 

4. No exposed conduit, neon, or tubing shall be permitted on the exterior of the premises. 

5. All conductors and other equipment shall be concealed. 

	 
	 	 	 
	

	 

 

C. CONSTRUCTION REQUIREMENTS: 

1. All exterior signs, bolts, fastenings and clips shall be of hot dipped galvanized iron or stainless steel. No black iron materials of any type shall be permitted. No exposed method of raceway attachment will be permitted, unless specified to the contrary in the attached design standards. Exhibit "D-1." 

2. Location of all openings for conduit and sleeves in building walls shall be indicated by the sign contractor on drawings submitted for approval to the Landlord. The contractor shall install the same in accordance with the approved drawings. 

3. No labels shall be permitted on the exposed surface of signs, except those required by local ordinance, which shall be applied in an inconspicuous location. 

4.  All penetrations of the building structure required for sign installation shall be neatly sealed in a watertight condition. 

5. Sign contractor shall repair or replace any damage to any work caused by his work per Landlord's discretion. 

6. Tenant shall be fully responsible for the operations of Tenant's sign contractor. 

7. Holes in fascia shall be drilled only. Roto hammers will not be allowed. 

8. Any damage (including damage to paint) to canopies by sign contractor will result in new canopies by Tenant and or sign contractor. 

9. No sign shall be permitted on the rear of the building nor on the tower elements. 

D. DESIGN REQUIREMENTS: 

1. Identification signs shall be designed as an integral part of the office front in a manner compatible with and complimentary to adjacent and facing office fronts and the overall design concept to the Office Center. Letter size shall be 24" maximum. 

2. Each Tenant must limit the length of their sign to 66 of his space frontage, or as space allows in accordance with Landlord's decision. All signs must be approved by the City of Mesa. 

3. REPLACED WITH EXHIBIT "D-1" 

4. Wording of signs shall be approved by Landlord and shall not include the product sold except as part of Tenant's trade name of insignia: No logos allowed without Landlord's approval. 

5. White vinyl 3" Helvetica letters will be allowed on the glass panel stating your company name. Letters shall be on a single line, 3" above window mullion, on the glass panel adjacent to the door. Cost shall be borne by Tenant. 

6. Refer to attached drawings for manufacturing details. 

7. If you have any questions or require the services of a qualified sign company, please contact the Landlord or property manager. 

Notwithstanding anything written herein to the contrary, signage shall be flush mounted, individual letters with a remote raceway. 

E. MONUMENT SIGNS 

In the event Tenant qualifies for placement of his business name or logo upon one or more of the Office center's monument sign(s) where said qualification is solely determined by Landlord, Tenant shall comply with the following: 

1. Tenant shall bear it's prorata share (as defined below) of the initial cost of the monument signs (the Cans and installation of the Cans) on which it is approved to locate. Tenant shall also bear the cost of installation of its prior Landlord approved monument sign face copy. Said sign face costs shall include any and all City fees and permits, fabrication, installation, and coordination costs incurred by Landlord. 

2. A sign company, as designated by Landlord, shall perform installation of Tenant's monument sign copy. 

	 
	 	 	 
	

	 

 

3. The maintenance, and operation of the monument signs are separated from the common area expenses as defined in the lease. Said expenses shall include maintenance, repairs (including "capital replacements"), electrical costs, insurance and any deductible amount necessary to repair insurable damage. Tenant shall pay its prorated share of said expenses. Proration shall be based on the square footage allocated to Tenant's monument sign area to the total square footage of all of the monument signs constructed for the Office Center. 

F. TENANT'S PERMITED FACIA SIGNS 

Pursuant to this Exhibit D and D-1, Tenant shall be permitted to place its logo signs upon the South and West building walls. 

	 
	 	 	 
	

	 

 

EXHIBIT D-l 

OFFICE BUILDING TENANTS BUILDING C. 

1. SIGNS NOT TO EXCEED 80 OF THE LEASED FRONTAGE. SIGNS TO BE CENTERED HORIZONTALLY & VERTICALLY ON TENANTS LEASED SPACE. 

2. ALL LETTERS SHALL NOT EXCEED 24" HEIGHT ON ONE LINE OF COPY & NOT TO EXCEED 30" ON TWO LINES OF COPY. 

3. LETTERS TO BE REVERSE PAN-CHANNEL LETTERS WITH 3" RETURNS PAINTED D.E. EMERALD DUST PRODUCT CODE 9-1. 

4. NEON TO BE 6500 WHITE. 

5. LETTERS TO BE CLIP MOUNTED I'" FROM TENANT WALL 

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EXHIBIT "E" 

THIS HAZARDOUS MATERIALS RIDER ("Rider") is attached to and made apart of that certain 

Lease dated 07/08/03 by and between Val Vista-Gateway, LLC as Landlord, and Huma Tech, Inc. an Illinois corporation, as Tenant, with respect to those certain premises commonly known as the Premises located at 1959 South Val Vista Drive, in the City of Mesa, State of Arizona (the "Premises"). Unless otherwise defined in this Rider, capital terms used in this Rider shall have the same meaning as set forth in the Lease. 

Tenant shall, and shall cause Tenant's employees, agents, contractors and invitees to, comply, at Tenant's sole cost and expense, with all laws, rules, regulations, orders and the like relating to the storage, use and/or disposal of flammable explosive materials, hazardous materials, toxic substances and/or radioactive matter, including, without limitation, substances identified as "hazardous" or "toxic" under any of the laws described in the paragraph below (collectively "Hazardous Materials"). Tenant shall not cause or permit Tenant, its agents, employees, contractors or invitees to bring upon, keep, store, use or dispose of any Hazardous Materials on, in or about the Premises or the parking facilities or common areas serving the Premises (collectively "Adjacent Property"), without the prior written consent of Landlord, which consent Landlord may withhold on its sole discretion. Tenant's breach of the covenants contained herein shall constitute a material default under this Lease. If Landlord shall consent to the presence, use, storage and/or disposal of any Hazardous Materials on, in or about the Premises or any Adjacent Property. Tenant shall cause such presence, use, storage and/or disposal of hazardous Materials by Tenant, its agents, employees, contractors or invitees, to be in complete compliance with all applicable laws, rules, regulations, orders and the like including without limitation, the laws described in paragraph below and such rules and regulations as Landlord may impose in giving Tenant its consent as provided herein. Consent by Landlord to the presence, use, storage and/or disposal of any specific Hazardous Materials shall not be deemed a consent to the presence, use, storage and /or disposal of other Hazardous Materials. Tenant shall be solely responsible for and shall defend, indemnify and hold Landlord, Landlord's agent, the Premises and the Adjacent Property harmless from and against all claims, costs, fines, judgments and liabilities, including attorney's fees and costs, arising out of or in connection with the presence, storage, use and/or disposal of Hazardous Materials in, on or under the Premises and/or any Adjacent Property and/or arising out of or in connection with the removal of Hazardous Materials from the Premises and/or Adjacent Property and/or the clean-up of the Premises and/or and Adjacent Property, including without Limitation, any and all restoration work and materials necessary to return the Premises and any Adjacent Property to their condition existing prior to the appearance of the Hazardous Materials on the Premises or such Adjacent Property. If Tenant shall receive any notice, whether oral or written, of any inquiry, test, investigation, enforcement proceeding, environmental audit or the like by or against Tenant or the Premises, concerning any Hazardous Materials allegedly introduced by Tenant, its employees, agents, contractors or invitees. Tenant shall immediately notify Landlord of such notice. Tenant's obligations hereunder shall survive the termination of this Lease. 

As used herein and elsewhere in this Lease, the term "Hazardous Material" means any hazardous or toxic substance, material or waste which is or becomes regulated by any local governmental authority, any agency of the State of Arizona or any agency of the United States Government. The term "Hazardous Material" includes, without limitation, any material or substance which is (I) designated as a "hazardous substance" pursuant to Section 3.11 of the Federal Water Pollution Control Act (33 U.S.C. s 1317), (ii) defined as a "hazardous waste" pursuant to Section 1004 of the Federal Resource Conservation and Recovery Act, 42 U.S.C. s 6901 et seq. (42 U.S.C. s 6903), (iii) defined as a "hazardous substance" pursuant to Section 101 of the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. s 9601 et seq. (42 U.S.C. s 9601), (iv) Petroleum and any petroleum by-products, (v) asbestos, and (vi) urea formaldehyde foam insulation. 

Approved and Accepted this _10__ day of__July_____________, 2003 

By: ___/s/ David G. Williams____________ 

Its: ___President_____________________ 

EXHIBIT "F" 

 

Option to Renew 

So long as Tenant has not been in default of the Lease, Tenant shall have the right to exercise its sole option to extend the terms of this Lease under the terms and conditions as provided herein: 

A. There shall be (one) Option Period(s) of (three) year(s). 

B. Tenant shall not be entitled to exercise the Option Period(s) unless Tenant has not been in default more than twice during the initial term and/or subsequent Option Period, has fully performed all of its terms and conditions of the Lease during the initial lease term and/or subsequent Option Periods, and unless this Lease Agreement is in full force and effect, both at the time of the option is exercised and, at the commencement of such Option Period. 

	 
	 	 	 
	

	 

 

C. Tenant may exercise its option to extend the lease term for the Option Period(s) by giving written notice to the Landlord, not more than two hundred ten (210) days nor less than one hundred eighty (180) days, prior to the expiration of the lease term or subsequent Option Period. 

D. The "Minimum Annual Rent" during the Option Periods shall be determined by the then prevailing market rates for similar space at the time the option is exercised but in no event less than the previous year(s) rent. 

E. If the Options are not duly exercised in the manner set forth, any such Option Period shall be automatically canceled and of no further force and effect. 

F. If the Lease Agreement is terminated prior to the commencement of an Option Period, or if the Lease has been assigned or the Premises or any part thereof has been sublet without the prior written consent of Landlord, the Options, if exercised, shall be automatically canceled and terminated and of no further force and effect. 

G. All other terms and conditions contained in this Lease, including schedules and exhibits, shall prevail and control during the Option Period(s), except for these Options to extend which options are limited to its exercise during the periods specifically described above. 

EXHIBIT "G" 

 

Guarantee of Lease 

This Guarantee of Lease (the "Guaranty") is attached to and made a part of that certain real estate Lease (the "Lease") dated 07/08/03 between Val Vista-Gateway LLC as Landlord, and HumaTech. Inc., as Tenant, covering the Property at 1959 South Val Vista Drive, in the City of Mesa, AZ. The terms used in this Guaranty shall have the same definitions as set forth, in the Lease. In order to induce Landlord to enter into the Lease with Tenant, HumaTech Inc. ("Guarantor"), has agreed to execute and deliver this Guaranty to Landlord. Guarantor acknowledges that Landlord would not enter into the Lease if Guarantor did not execute and deliver this Guaranty to Landlord. 

1. Guaranty . In consideration of the execution of the Lease by Landlord and as a material inducement to Landlord to execute The Lease, Guarantor hereby irrevocably, unconditionally, jointly and severally guarantees the full, timely and complete (a) payment of all rent and other sums payable by Tenant to Landlord under the Lease, and any amendments or modifications thereto by agreement or course of conduct, and (b) performance to of all covenants, representations and warranties made by Tenant and all obligations to be performed by Tenant pursuant the Lease, and any amendments or modifications thereto by Tenant and all obligations to be performed by Tenant pursuant to the Lease, and any amendments or modifications thereto by agreement or course of conduct. The payment of those amounts and performance of those obligations shall be conducted in accordance with all terms, covenants and conditions set forth in the Lease, without deduction, offset or excuse of any nature and without regard to the enforceability or validity of the Lease, or any part thereof, or any disability of Tenant. 

2. Landlord's Rights . Landlord may perform any of the following acts at any time during the Lease Term, without notice to or assent of any guarantor and without in any way releasing, affecting or impairing any of Guarantor's obligations or liabilities under this Guaranty; (a) alter, modify or amend the Lease by agreement or course of conduct (b) grant extensions or renewals of the Lease, but any such extension shall not extend this Guaranty without the express written consent to such extension by Guarantor (c) assign or otherwise transfer its interest in the Lease, the Property, or this Guaranty, (d) consent to any transfer or assignment of Tenant's or any future tenant's interest under the Lease, except that any such transfer or assignment shall not continue the obligation of the Guarantor hereunder unless written consent is expressly given, (e) take and hold security for the payment of this guaranty and exchange, enforce, waive and release any such security, (f) apply such security and direct the order or manner of sale thereof as Landlord, in its sole discretion, deems appropriate, and (g) foreclose upon any such security by judicial or nonjudicial sale, without affecting or impairing in any way the liability of Guarantor under this Guaranty, except to the extent the indebtedness has been paid. 

3. Tenant's Default . This Guaranty is a guaranty of payment and performance, and not of collection. Upon any breach or default by Tenant under the Lease, Landlord shall first proceed immediately against Tenant. Landlord may proceed immediately against Tenant and/or any guarantor to enforce any of Landlord's rights or remedies against Tenant or Guarantor pursuant to this Guaranty, the Lease or at law or in equity without notice to, or demand upon, either Tenant or Guarantor. Only after Landlord has made good faith attempts to enforce its rights or remedies against Tenant pursuant to the Lease may Landlord proceed to enforce its rights under this Guaranty. This Guaranty shall not be released, modified or affected by any failure or delay by Landlord to enforce any of its rights or remedies under the Lease or this Guaranty, or at law or in equity. 

4. Guarantor's Waivers . Guarantor hereby waives (a) presentment, demand for payment and protest of non-performance under the Lease, (b) notice of any kind including, without limitation, notice of acceptance of this Guaranty, protest, presentment, demand for payment, default, nonpayment, or the creation or incurring of new or additional obligations of Tenant to Landlord, (c) any right to require Landlord to enforce its rights or remedies against Tenant under the Lease, or otherwise, or against Guarantor, (d) any right to require Landlord to proceed against any security held from Tenant or any other party, (e) any right of subrogation and (f) any defense arising out of the absence, impairment or loss of any right of reimbursement or subrogation or other right or remedy of Guarantor against Landlord or any such security, whether resulting from any election by Landlord, or otherwise. Any part payment by Tenant or other circumstance which operates to toll any statute of limitations as to Tenant shall operate to toll the statute of limitations as to Guarantor. 

	 
	 	 	 
	

	 

 

5. Separate and Distinct Obligations . Guarantor acknowledges and agrees that such Guarantor's obligations to Landlord under this Guaranty are separate and distinct from Tenant's obligations to Landlord under the Lease. The occurrence of any of the following events shall not have any effect whatsoever on Guarantor's obligations to Landlord hereunder, each of which obligations shall continue in full force or effect as though such event had not occurred: (a) the commencement by Tenant of a voluntary case under the federal bankruptcy laws, as now constituted or hereafter amended or replaced, or any other applicable federal or state bankruptcy, insolvency or other similar law (collectively, the "Bankruptcy Law"), (b) the consent by Tenant to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator or similar official of Tenant or for any substantial part of its property, (c) any assignment by Tenant for the benefit of creditors, (d) the failure of Tenant generally to pay its debts as such debts become due, (e) the taking of corporate action by Tenant in the furtherance of any of the foregoing; or (f) the entry of a decree or order for relief by a court having jurisdiction in respect of Tenant in any involuntary case under the Bankruptcy Laws, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of Tenant or for any substantial part of its property, or ordering the winding-up or liquidation of any of its affairs and the continuance of any such decree or order unstayed and in effect for a period of sixty (60) consecutive days. The liability of Guarantor under this Guaranty is not and shall not be affected or impaired by the amount of any payment made to Landlord under or related to the Lease for which Landlord is required to reimburse Tenant pursuant to any court order or in settlement of any dispute, controversy or litigation in any bankruptcy, reorganization, arrangement, moratorium or other federal or state debtor relief proceeding. If, during any such proceeding, the Lease is assumed by Tenant or any trustee, or thereafter assigned by Tenant or any trustee to a third party, this Guaranty shall terminate. This Guaranty shall remain in full force and effect with respect to the full performance of Tenant, any such trustee or any such third party's obligations under the Lease. If the Lease is terminated or rejected during any such proceeding, or if any of the events described in Subparagraphs (a) through (f) of this Paragraph 5 occur, as between Landlord and Guarantor, Landlord shall have the right to accelerate all of Tenant's obligations under the Lease and Guarantor's obligations under this Guaranty. In such event, all such obligations shall become immediately due and payable by Guarantor to Landlord. Guarantor waives any defense arising by reason of any disability or other defense of Tenant or by reason of the cessation from any cause whatsoever of the liability of Tenant. 

6. Subordination . All existing and future advances by Guarantor to Tenant, and all existing and future debts of Tenant to Guarantor, shall be subordinated to all obligations owed to Landlord under the Lease and this Guaranty. 

7. Successors and Assigns . This Guaranty binds Guarantor's personal representatives, successors and assigns. 

8. Encumbrances . If Landlord's interest in the Property or the Lease, or the rents, issues or profits therefrom, are subject to any deed of trust, mortgage or assignment for security, any guarantor's acquisitions of Landlord's interest in the Property or Lease shall not affect any of Guarantor's obligations under this Guaranty. In such event, this Guaranty shall nevertheless continue in full force and effect for the benefit of any mortgagee, beneficiary, trustee of assignee or any purchaser at any sale by judicial foreclosure or under any private power of sale, and their successors and assigns. 

9. Guarantors Duty . Guarantor assumes the responsibility to remain informed of the financial condition of Tenant and of all other circumstances bearing upon the risk of Tenant's default, which reasonable inquiry would reveal, and agree that Landlord shall have no duty to advise Guarantor of information known to it regarding such condition or any such circumstance. 

10. Landlord's Reliance . Landlord shall not be required to inquire into the powers of Tenant or the officers, employees, partners or agents acting or purporting to act on its behalf, and any indebtedness made or created in reliance upon the professed exercise of such powers shall be guaranteed under this Guaranty. 

11. Incorporation of Certain Lease Provisions . Guarantor hereby represents and warrants to Landlord that such Guarantor has received a copy of the Lease, has read or had the opportunity to read the Lease, and understands the terms of the Lease. The provisions in the Lease relating to the execution of additional document, legal proceedings by Landlord against Tenant, severability of the provisions of the Lease, interpretation of the Lease, notices, waivers, the applicable laws which govern the interpretation of the Lease and the authority of the Tenant to execute the Lease are incorporated herein in their entirety by this reference and made a part hereof. Any reference in those provisions to "Tenant" shall mean Guarantor and any reference in those provisions to the "Lease" shall mean this guaranty, except that (a) any notice which Guarantor desires or is required to provide to Landlord shall be effective only if signed by Guarantor and (b) any notice which Landlord desires or is required to provide to Guarantor shall be sent to such Guarantor at such Guarantor's address indicated below, or if no address is indicated below, at the address for notices to be sent to Tenant under the Lease. 

Signed this __10____ day of __July__________________, 2003__. 

_/s/ David G. Williams_______ 

_President________________ 

	 
	 	 	 
	

	 

 

CONSULT YOUR ATTORNEY-This document has been prepared for approval by your attorney. No representation or recommendation is made by Phoenix Commercial Advisors or the agents or employees of them as to the legal sufficiency, legal effect, or tax consequences of this document or the transaction to which it relates. These are questions for your attorney.

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