Document:

Exhibit
10.60

 

	
  

  	
   

   

  RECEIVED

  MAY 10 2005

  ISI DETENTION CONTRACTING

  

P.O. Box 543033

Dallas, TX 75354

 

Phone 972.247.1888 ~ Fax 972. 247.4455

 

May 6,  2005

 

Robert-Roller

Metroplex Control Systems 

12918 Delivery Drive

San Antonio, TX 78247

 

Dear
Robert,

 

Enclosed are two originals of the lease renewal agreement.
Please sign and return
one and keep the other for your records.

 

Please call me at 214.502.4882 or my assistant, Lisa
Stoffregen at 972.247.1888 if you have any questions or concerns.

 

Thank you again for your lease renewal. I appreciate your
business and wish you continued success.

 

 

	
  Sincerely,

  	
   

  
	
   

  	
   

  
	
  /s/ Neil Felder

  	
   

  
	
  Neil Felder

  	
   

  

 

 

Renewal
of Lease Agreement – 2472 Southwell Drive

 

This Amendment of Lease
Agreement made and entered into this            
Day of April 2005, by and between Neil Felder (Landlord) and ISI Controls,
Ltd., a Texas limited partnership (Tenant).

 

WHEREAS,
Landlord and Tenant have entered into that certain agreement dated March 10,
2000, in which ISI Controls, Ltd. Assumed the lease of Metroplex Control
Systems, Inc. (and amended on June 26th, 2001) covering the premises described
in the lease dated January 19th,
1996 and amended June 30th,
1999, the term of such lease and subsequent renewal thereof and:

 

WHEREAS,
Landlord and Tenant wish to continue the lease on the same terms and conditions,
provisions, agreements, except:

 

1.  The
term of the lease shall be extended from July 31st, 2005 to the last day
of June 2009 (4 year extension). 

2.  Monthly
rent shall be $5,000.00 beginning with the August 2005 rent payment.

 

WITNESS WHEREOF,
Landlord and Tenant have executed this agreement as of the date first above
written. All other terms and condition of original lease and amendments and
assignments, will remain enforce.

 

 

	
  Landlord:

  	
   

  	
  Tenant: 

  	
   

  
	
  Neil Felder

  	
   

  	
  ISI Controls, Ltd.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Neil Felder

  	
   

  	
  4/22/05

  	
   

  	
  /s/ Robert
  Roller

  	
   

  	
  5/11/2005

  
	
  Neil Felder

  	
  Date 

  	
   

  	
  Date

  
	
  Managing Partner

  	
   

  	
  President

  	
   

  
							

 

 

RENEWAL OF LEASE –
2472 SOUTHWELL DRIVE

 

THIS RENEWAL OF LEASE,
MADE AND ENTERED INTO THIS 30TH DAY OF JUNE 1999, BY AND BETWEEN LANDLORD, NEIL
FELDER AND TENANT, METROPLEX CONTROL SYSTEMS, INC., LOCATED AT 2472 SOUTHWELL
DRIVE, DALLAS, TEXAS, 75229.

 

WHEREAS, Landlord and
Tenant have entered into that certain agreement dated January 19th,
1996, covering the premises described in the lease, the term of such lease and
subsequent renewal thereof and:

 

WHEREAS, Landlord and
Tenant wish to continue the lease on the same term and conditions, provisions,
agreements, except:

 

1)   Lease
term shall be extended from August 1st, 1999 through July 31st,
2002 (3 year extension).

 

2)   Rental
rate shall be $4,800.00 per month beginning with the August 1999 rent
payment.

 

NOW, THEREFORE, for
valuable consideration, the receipt and sufficiency which is hereby
acknowledged, Landlord does hereby lease, demise and let unto Tenant, and
Tenant does hereby take and accept the lease premises, and Landlord and Tenant
do hereby agree that the lease shall begin on August 1st 1999 and will expire on July 31st, 2002.

 

WITNESS WHEREOF, Landlord
and Tenant have executed this renewal of lease as of the date first above
written.  All other terms and conditions
of original lease agreement dated January 19th, 1996 will remain enforce.

 

 

	
  LANDLORD:

  	
  TENANT:

  
	
   

  	
   

  
	
   

  	
   

  
	
  Neil Felder

  	
   

  	
  Metroplex Control
  Systems:

  
	
   

  	
   

  	
   

  
	
  /s/ Neil Felder

  	
   

  	
  /s/ [illegible]

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  7/11/99

  	
   

  	
  Date:

  	
  6/30/99

  
							

 

 

	
  

  	
   

  GREATER
  DALLAS ASSOCIATION OF REALTORS®, INC.

   

   

  LEASE
  AGREEMENT

   

  	
  

  

 

 

ARTICLE ONE: BASIC TERMS

 

	
  1.01.

  	
  Date of Lease:

  	
  January 19, 1996

  
	
   

  	
   

  	
   

  
	
  1.02.

  	
  Landlord: 

  Address of Landlord:

  	
  Neil Felder

  2441 Arbuckle

  Dallas, TX 75229

  
	
   

  	
   

  	
   

  
	
  1.03.

  	
  Tenant:

  Address of Tenant:

  	
  Metroplex Control Systems,
  Inc.

  2472 Southwell

  Dallas, TX 75229

  
	
   

  	
   

  	
   

  
	
  1.04.

  	
  Property (Include street
  address, as well as legal description and approximate square footage):

  
	
   

  	
   

  
	
   

  	
   

  	
  2472 Southwell Drive,
  Dallas, Dallas County, Texas.

  Legal description Exhibit A attached.

  Approximately 11,000 square feet.

  
	
   

  	
   

  	
   

  
	
  1.05.

  	
  Lease Term:  Three (3) years beginning on August 1st,
  1996 and ending on August 1st, 1999

  
	
   

  	
   

  	
   

  
	
  1.06.

  	
  Rent:  $162,000.00

  
	
   

  	
  Dollars ($ 4,500.00) per
  month.

  
	
   

  	
   

  
	
  1.07.

  	
  Security Deposit:
  $3,570.00 (on Deposit)

  
	
   

  	
   

  
	
  1.08.

  	
  Permitted Use.
  (see Section 6.0.1):  General office /
  assembly / distribution of security systems & control systems &
  assemblies.

  
	
   

  	
   

  
	
  -NONE-

  
	
   

  	
   

  
	
  -NONE-

  
	
   

  	
   

  
	
  1.12.

  	
  Base Year for Taxes
  (see Section 4.02):  1995

  
	
   

  	
   

  
	
  1.13.

  	
  Party to Receive Payments from
  Tenant Hereunder:                       :

  
	
   

  	
   

  
	
   

  	
  Landlord. (strike one)

  
	
   

  	
   

  
	
  1.14.

  	
  Daily Late Charge
  (See Section 3.03): Rent received after the Seventh(7) day of month due
  subject to a service charge (late fee) of five percent (5%) of such past due

  
				

[ILLEGIBLE]

 

 

delayed, Landlord and
Tenant shall, upon such delivery, execute an amendment to this Lease setting
forth the Commencement Date and expiration date of the Lease.

 

2.03.
Early Occupancy. If Tenant occupies the Property prior to the
Commencement Date. Tenant’s occupancy of the Property shall be subject to all
of the provisions of this Lease. Early occupancy of the Property shall not advance
the expiration date of this Lease. Tenant shall pay Base Rent and all other
charges specified in this Lease for the occupancy period.

 

2.04. Holding Over.
Tenant shall vacate the Property upon the expiration or earlier termination of
this Lease. Tenant shall reimburse Landlord for and indemnify Landlord against
all damages incurred by Landlord from any delay by Tenant in vacating the
Property. If Tenant does not vacate the Property upon the expiration or earlier
termination of the Lease. Tenant’s occupancy of the Property shall be a “month-to-month”
tenancy, subject to all of the terms of this Lease applicable to a
month-to-month tenancy, except that the Base Rent then in effect shall be
increased by fifty percent (50%).

 

ARTICLE THREE: RENT AND SECURITY
DEPOSIT

 

3.01. Manner of Payment. All
sums to become due hereunder by Tenant shall be made to the party named in Section 1.13
above, at the address stated herein for such party, unless such address is
changed as provided herein.  All sums payable
by Tenant hereunder, whether or not expressly denominated as rent, shall
constitute rent for the purposes of section 502(b) (7) of the
Bankruptcy Code.

 

3.02. Time of Payment. Upon execution
hereof. Tenant shall pay the rent for the first month of the Lease Term. On or
before the first day of the second month of the Lease Term and of each month
thereafter, a like monthly installment shall be due and payable, in advance, without
off-set, deduction or prior demand. If the Lease Term commences or ends during
a calendar month, the rent for any fractional calendar month following the
Commencement Date or preceding the end of the Lease Term shall be prorated by
days.

 

3.03. Late Charges. Tenant’s
failure to pay sums due hereunder promptly may cause Landlord to incur unanticipated
costs. The exact amount of such costs are impractical or extremely difficult to
ascertain. Such costs may include, but are not limited to, processing and accounting
charges and late charges which may be imposed on Landlord by any ground lease,
deed of trust or mortgage encumbering the Property. Therefore, if any sum due
hereunder is not received on its due date. Tenant shall pay the party named in Section 1.13
above a late charge equal to the sum stated in Section 1.14 from its due
date until such delinquent sum is received. If any check tendered in payment of
any sum due from Tenant hereunder is returned for any reason. Tenant shall pay
a late charge for each day from said due date until such check is made good.
The parties agree that such late charge represents a fair and reasonable
estimate of the costs Landlord will incur by reason of such late payment or
such returned check.

 

3.04. Security Deposit.  Landlord is currently in possesion of tenant’s
security deposit. Landlord may apply all or part of the Security Deposit to any
unpaid rent or other charges due from Tenant or to cure any other defaults of
Tenant. If Landlord uses any part of the Security Deposit. Tenant shall restore
the Security Deposit to its full amount within ten (10) days after
Landlord’s written request. Tenant’s failure to do so shall be a material
default under this Lease. No interest shall be paid on the Security Deposit.
Landlord shall not be required to keep the Security Deposit separate from its other
accounts and no trust relationship is created with respect to the Security
Deposit. Upon any termination of this Lease not resulting from Tenant’s
default, and after Tenant has vacated the Property in the manner required by
this Lease. Landlord shall refund the unused portion of the Security Deposit to
Tenant.

 

ARTICLE FOUR: TAXES

 

4.01.
Payment by Landlord. Landlord shall pay the real estate taxes
on the Property during the Lease Term.

 

4.02.
Payment by Tenant. Tenant shall pay the party named in Section 1.13
above, as additional rental, the excess, if any, of the real estate taxes for
any year during the Lease Term over the real estate taxes for the base year
stated in Section l.12. Tenant shall make such payment within fifteen (15)
days after receipt of a statement showing the amount and computation of such
increase. Tenant shall be responsible for the pro-rata portion of such
additional rental for any fractional part of a year preceding the end of the
Lease Term, which prorated sum shall be due and payable upon the termination of
this Lease. If the termination of this Lease occurs before the tax rate is fixed
for the particular year, the proration shall be upon the basis of the tax rate
for the preceding year applied to the latest assessed valuation, and
notwithstanding the termination of this Lease, any difference in the actual
real estate taxes for such year shall be adjusted between the parties upon
receipt of written evidence of the payment thereof.

 

4.03 Improvements
by Tenant. In the event the real estate taxes levied against
the Property for the real estate tax year in which the Lease Term commences are
increased as a result of any alterations, additions or improvements made by
Tenant or by Landlord at the request of Tenant. Tenant shall pay to Landlord
upon demand the amount of such increase. For the purposes of the calculations
under Section 4.02, the amount of the real estate taxes during the real
estate tax year in which the Lease Term commences shall not include any taxes
resulting from any such alterations, additions or improvements made in or to
the Property. Landlord shall obtain from the tax assessor or assessors a
written statement of the total amount of such increase.

 

4.04.
Joint Assessment. If the real estate taxes are assessed
against the Property jointly with other property not constituting a part of the
Property, the real estate taxes for such years shall be equal to the amount
bearing the same proportion to the aggregate assessment that the total square
feet of building area in the Property bears to the total square feet of
building area included in the joint assessment.

 

4.05.
Personal Property Taxes. Tenant shall pay all taxes charged
against trade fixtures, furnishings, equipment or any other personal property
belonging to Tenant. Tenant shall try to have its personal property taxed
separately from the Property, but if any of Tenant’s personal property is taxed
with the Property. Tenant shall pay the taxes for the personal property within
fifteen (15) days after Tenant receives a written statement for such personal
property taxes.

 

ARTICLE FIVE: INSURANCE AND
INDEMNITY

 

5.01.
Casualty Insurance. During the Lease Term, Landlord shall
maintain policies of insurance covering loss of or damage to the Property in
such amount or percentage of replacement value as Landlord or its insurance
advisor deems reasonable in relation to the age, location, type of construction
and physical condition of the Property and the availability of such insurance
at reasonable rates. Such policies shall provide protection against all perils
included within the classification of fire and extended coverage and any other
perils [ILLEGIBLE]

 

 

under this Section by
naming Landlord as an additional insured under a policy of comprehensive
liability insurance maintained by Tenant and containing the coverage and provisions
described in this Section. Tenant shall deliver a copy of such policy or
certificate (or a renewal thereof) to Landlord prior to the Commencement Date
and prior to the expiration of any such policy during the Lease Term. If Tenant
fails to maintain such policy. Landlord may elect to maintain such insurance at
Tenant’s expense. Tenant shall, at Tenant’s expense, maintain such other liability
insurance as Tenant deems necessary to protect Tenant.

 

5.04. Indemnity.
Landlord shall not be liable to Tenant or to Tenant’s employees, agents or
visitors, or to any other person whomsoever, for any injury to persons or
damage to property on or about the Property or any adjacent area owned by
Landlord caused by the negligence or misconduct of Tenant, its employees,
subtenants, licensees or concessionaires or any other person entering the
Property under express or implied invitation of Tenant, or arising out of the use
of the property by Tenant and the conduct of its business therein, or arising
out of any breach or default by Tenant in the performance of its obligations
hereunder; and Tenant hereby agrees to indemnify Landlord and hold it harmless
from any loss, expense or claims arising out of such damage or injury. Tenant
shall not be liable for any injury or damage caused by the negligence or misconduct
of Landlord, or its employees or agents, and Landlord agrees to indemnify
Tenant and hold it harmless from any loss, expense or damage arising out of
such damage or injury.

 

5.05. Waiver
of Subrogation. Each party hereto waives any and every claim
which arises or may arise in its favor against the other party hereto during
the term of this Lease or any renewal or extension thereof for any and all loss
of, or damage to, any of its property located within or upon, or constituting a
part of the Property, which loss or damage is covered by valid and collectible
fire and extended coverage insurance policies, to the extent that such loss or
damage is recoverable under such insurance policies. Such mutual waivers shall
be in addition to, and not in limitation or derogation of, any other waiver or
release contained in this Lease with respect to any loss of, or damage to,
property of the parties hereto. Inasmuch as such mutual waivers shall preclude
the assignment of any aforesaid claim by way of subrogation or otherwise to an
insurance company (or any other person) each party hereby agrees immediately to
give to each insurance company which has issued to it policies of fire and
extended coverage insurance, written notice of the terms of such mutual
waivers, and to cause such insurance policies to be properly endorsed, if necessary,
to prevent the invalidation of such insurance coverages by reason of such
waivers.

 

ARTICLE SIX:  USE OF PROPERTY

 

6.01.
Permitted Use. Tenant may use the Property only for the
permitted use stated in Section 1.08.

 

6.02.
Compliance with Law. Tenant shall comply with all
governmental laws, ordinances and regulations applicable to the use of the
Property, and shall promptly comply with all governmental orders and directives
for the correction, prevention and abatement of nuisances in or upon, or connected
with the Property, all at Tenant’s sole expense.

 

6.03.
Certificate of Occupancy. Tenant may prior to the
commencement of the term of this Lease, apply for a Certificate of Occupancy to
be issued by the municipality in which the Property is located, but this Lease
shall not be contingent upon issuance thereof. Nothing herein contained shall
obligate Landlord to install any additional electrical wiring, plumbing or
plumbing fixtures which are not presently existing on the Property, or which have
not been expressly agreed upon by Landlord in writing.

 

6.04.
Signs. Without the prior written consent of Landlord. Tenant
shall not place or affix any signs or other objects upon or to the Property, including
but not limited to the roof or exterior walls of the building or other
improvements thereon, or paint or otherwise deface said exterior walls. Any
signs installed by Tenant shall conform with applicable laws and deed and other
restrictions. Tenant shall remove all signs at the termination of this Lease
and shall repair any damage and close any holes caused or revealed by such
removal.

 

6.05. Utility
Services. Tenant shall pay the cost of all utility services,
including but not limited to initial connection charges, all charges for gas, water
and electricity used on the Property, and for all electric lights, lamps and tubes.

 

6.06. Landlord’s
Access. Landlord and its authorized agents shall have the
right, during normal business hours, to enter the Property (a) to inspect
the general condition and state of repair thereof. (b) to make repairs
required or permitted under this Lease. (c) to show the property to any prospective
tenant or purchaser or (d) for any other reasonable purpose. During the final
150 days of the lease Term. Landlord and its authorized agents shall have the
right to erect and maintain on or about the Property customary signs
advertising the Property for lease or for sale.

 

6.07.
Quiet Possession. If Tenant pays the rent and complies with
all other terms of this Lease. Tenant may occupy and enjoy the Property for the
full Lease Term, subject to the provisions of this Lease.

 

6.08. Exemptions
from Liability. Landlord shall not be liable for any damage
or injury to the person, business (or any loss of income therefrom). goods,
wares, merchandise or other property of Tenant. Tenant’s employees, invitees,
customers or any other person in or about the Property, whether such damage or
injury is caused by or results from: (a) fire, steam, electricity, water,
gas or rain; (b) the breakage, leakage, obstruction or other defects of pipes,
sprinklers, wires, appliances, plumbing, air conditioning or lighting fixtures
or any other cause; (c) conditions arising on or about the Property or
upon other portions of any building of which the Property is a part, or from other
sources or places; or (d) any act or omission of any other tenant of any
building of which the Property is a part. Landlord shall not be liable for any
such damage or injury even though the cause of or the means of repairing such
damage or injury are not accessible to Tenant. The provisions of this Section 6.08
shall not however, exempt Landlord from liability for Landlord’s gross
negligence or willful misconduct.

 

ARTICLE SEVEN: MAINTENANCE,
REPAIRS AND ALTERATIONS

 

7.01.
Acceptance of Premises. Tenant acknowledges that it has fully
inspected the Property and accepts the Property in its condition as of the execution
of this Lease as suitable for the purposes for which it is leased. Tenant acknowledges
that, except as stated in the following sentence, neither Landlord nor an agent
of Landlord has made any representation as to the condition of the Property or
the suitability of the Property for Tenant’s intended use. Landlord represents
that on the Commencement Date, the plumbing, electrical system and exterior
doors, and any fire protection sprinkler system, heating system, air
conditioning equipment and elevators existing on the date of this Lease, are or
will be in good operating condition.

 

7.02.
Landlord’s Obligation to Repair. Subject to the provisions of
Article Eight (Damage or Destruction) and Article Nine (Condemnation)
and except for damage caused by any act or omission of Tenant. Landlord shall
keep the foundation, roof and the structural portions of exterior walls of the
improvements of the Property in good order, condition and repair. However, Landlord
shall not be obligated to maintain or repair windows, doors, plate glass or the
surfaces of walls. In addition, Landlord shall not be obligated to make any
repairs under this Section until a reasonable time after receipt of
written notice from Tenant of the need of such repairs. If any repairs are
required to be made by Landlord. Tenant shall, at Tenant’s sole cost and
expense, promptly remove Tenant’s fixtures, inventory, equipment and other
Property, to the extent required to enable Landlord to make such repairs.
Landlord’s liability hereunder shall be limited to the cost of such repairs or
corrections. Tenant waives the

 

 

removal of such items,
repair in a good and workmanlike manner any damage caused by installation or
removal thereof. Tenant shall pay for all costs incurred or arising out of
alterations, additions or improvements in or to the Property and shall not
permit a mechanic’s or materialman’s lien to be asserted against the Property.
Upon request by Landlord, Tenant shall deliver to Landlord proof of payment
reasonably satisfactory to Landlord of all costs incurred or arising out of any
such alterations, additions or improvements.

 

7.05.
Condition upon Termination. Upon the termination of the Lease,
Tenant shall surrender the Property to Landlord, broom clean and in the same
condition as received except for ordinary wear and tear which Tenant was not
otherwise obligated to remedy under any provision of the Lease. However, Tenant
shall not be obligated to repair any damage which Landlord is required to
repair under Article Eight (Damage or Destruction). In addition, Landlord
may require Tenant to remove any alterations, additions or improvements
(whether or not made with Landlord’s consent) prior to the termination of the
Lease and to restore the Property to its prior condition, all at Tenant’s
expense. All alterations, additions and improvements which Landlord has not
required Tenant to remove shall become Landlord’s property and shall be
surrendered to Landlord upon the termination of the Lease. In no event,
however, shall Tenant remove any of the following materials or equipment
without Landlord’s prior written consent: any power wiring or power panels;
lighting or lighting fixtures: wall coverings; drapes, blinds or other window
coverings; carpets or other floor coverings; heaters, air conditioners or any
other heating or air conditioning equipment; fencing or security gates; or
other similar building operating equipment and decorations.

 

ARTICLE EIGHT: DAMAGE OR
DESTRUCTION

 

8.01.
Notice. If the building or other improvements situated on the
Property should be damaged or destroyed by fire, tornado or other casualty.
Tenant shall immediately give written notice thereof to Landlord.

 

8.02.
Partial Damage. If the building or other improvements
situated on the Property should be damaged by fire, tornado or other casualty
but not to such an extent that rebuilding or repairs cannot reasonably be
completed within 120 days from the date Landlord receives written notification
by Tenant of the happening of the damage, this Lease shall not terminate, but
Landlord shall, at its sole cost and risk. proceed forthwith and use reasonable
diligence to rebuild or repair such building and other improvements on the
Property (other than leasehold improvements made by Tenant or any assignee, subtenant
or other occupant of the Property) to substantially the condition in which they
existed prior to such damage: provided. however, if the casualty occurs during
the final 18 months of the Lease Term, Landlord shall not be required to
rebuild or repair such damage unless Tenant shall exercise its renewal option
(if any is contained herein) within fifteen (15) days after the date of receipt
by Landlord of the notification of the occurrence of the damage. If Tenant does
not elect to exercise its renewal option or if there is no renewal option
contained herein or previously unexercised at such time, this Lease shall terminate
at the option of Landlord and rent shall be abated for the unexpired portion of
this Lease, effective from the date of actual receipt by Landlord of the
written notification of the damage. If the building and other improvements are
to be rebuilt or repaired and are untenantable in whole or in part following
such damage, the rent payable hereunder during the period in which they are
untenantable shall be adjusted equitably.

 

8.03.
Substantial or Total Destruction. If the building or other
improvements situated on the Property should be substantially or totally destroyed
by fire, tornado or other casualty, or so damaged that rebuilding or repairs
cannot reasonably be completed within 120 days from the date Landlord receives
written notification by Tenant of the happening of the damage, this Lease shall
terminate at the option of Landlord and rent shall be abated for the unexpired
portion of this Lease, effective from the date of receipt by Landlord of such
written notification. If this Lease is not terminated, the building and the
improvements shall be rebuilt or repaired and rent abated to the extent provided
under Section 8.02.

 

ARTICLE
NINE: CONDEMNATION

 

If, during the term of
this Lease or any extension or renewal thereof, all or a substantial part of
the Property should be taken for any public or quasi-public use under any governmental
law, ordinance or regulation or by right of eminent domain, or should be sold
to the condemning authority under threat of condemnation, this Lease shall
terminate and the rent shall be abated during the unexpired portion of this
Lease, effective from the date of taking of the Property by the condemning
authority. If less than a substantial part of the demised premises is taken for
public or quasi-public use under any governmental law, ordinance or regulation,
or by right of eminent domain, or is sold to the condemning authority under
threat of condemnation. Landlord, at its option. may by written notice
terminate this Lease or shall forthwith at its sole expense restore and
reconstruct the buildings and improvements (other than leasehold improvements
made by Tenant or any assignee, subtenant or other occupant of the Property)
situated on the Property in order to make the same reasonably tenantable and
suitable for the use for which the Property is leased as defined in Section 6.01.
The rent payable hereunder during the unexpired portion of this Lease shall be
adjusted equitably. Landlord and Tenant shall each be entitled to receive and
retain such separate awards and portions of lump sum awards as may be allocated
to their respective interests in any condemnation proceedings. The termination
of this Lease shall not affect the rights of the respective parties to such
awards.

 

ARTICLE
TEN: ASSIGNMENT AND SUBLETTING

 

Tenant shall not, without
the prior written consent of Landlord, assign this Lease or sublet the Property
or any portion thereof. Any assignment or subletting shall be expressly subject
to all terms and provisions of this Lease, including the provisions of Section 6.01
pertaining to the use of the Property. In the event of any assignment or
subletting. Tenant shall remain fully liable for the full performance of all Tenant’s
obligations under this Lease. Tenant shall not assign its rights hereunder or
sublet the Property without first obtaining a written agreement from the
assignee or sublessee whereby the assignee or sublessee agrees to be bound by
the terms of this Lease. No such assignment or subletting shall constitute a novation.
In the event of the occurrence of an event of default while the Property is
assigned or sublet. Landlord, in addition to any other remedies provided herein
or by law, may at Landlord’s option, collect directly from such assignee or
subtenant all rents becoming due under such assignment or subletting and apply
such rent against any sums due to Landlord hereunder. No direct collection by
Landlord from any such assignee or subtenant shall release Tenant from the
performance of its obligations hereunder.

 

ARTICLE ELEVEN: DEFAULT AND
REMEDIES

 

11.01.
Default. The following events shall be deemed to be events of
default under this Lease: 

 

(a) Failure of Tenant to
pay any installment of the rent or other sum payable to Landlord hereunder on
the date that same is due and such failure shall continue for a period of ten (10) days;

 

(b) Failure of Tenant to
comply with any term, condition or covenant of this Lease, other than the
payment of rent or other sum of money, and such failure shall not be cured
within thirty (30) days after written notice thereof to Tenant;

 

(c) Tenant or any
guarantor of Tenant’s obligations hereunder shall generally not pay its-debts
as they become due or shall admit in writing its inability to pay its debts, or
shall make a general assignment for the benefit of creditors.

 

(d) Tenant or any
guarantor of Tenant’s obligations hereunder shall commence any case, proceeding
or other action seeking

[ILLEGIBLE]

 

(a) Terminate this Lease,
in which event Tenant shall immediately surrender the Property to Landlord. If
Tenant fails to so surrender such premises, Landlord may, without prejudice to
any other remedy which it may have for possession of the Property or arrearages
in rent, enter upon and take possession of the Property and expel or remove
Tenant and any other person who may be occupying such premises or any part
thereof, by force if necessary, without being liable for prosecution or any
claim for damages therefor. Tenant shall pay to Landlord on demand the amount
of all loss and damage which Landlord may suffer by reason of such termination,
whether through inability to relet the Property on satisfactory terms or
otherwise: 

 

(b) Enter upon and
take possession of the Property, by force if necessary, without terminating
this Lease and without being liable for prosecution or for any claim for
damages therefor. and expel or remove Tenant and any other person who may be
occupying such premises or any part thereof, Landlord may relet the Property and
receive the rent therefor. Tenant agrees to pay to Landlord monthly or on
demand from time to time any deficiency that may arise by reason of any such
reletting. In determining the amount of such deficiency, the brokerage
commission, attorneys’ fees, remodeling expenses and other costs of reletting
shall be subtracted from the amount of rent received under such reletting:

 

(c) Enter upon the
Property, by force, if necessary, without terminating this Lease and without
being liable for prosecution or for any claim for damages therefor, and do
whatever Tenant is obligated to do under the terms of this Lease. Tenant agrees
to pay Landlord on demand for expenses which Landlord may incur in thus
effecting compliance with Tenant’s obligations under this Lease, together with interest
thereon at the rate of twelve percent (12%) per annum from the date expended
until paid. Landlord shall not be liable for any damages resulting to Tenant
from such action, whether caused by negligence of Landlord or otherwise. 

 

Pursuit of any of the
foregoing remedies shall not preclude pursuit of any of the other remedies
herein provided or any other remedies provided by law, nor shall pursuit of any
remedy herein provided constitute a forfeiture or waiver of any rent due to
Landlord hereunder or of any damages accruing to Landlord by reason of the
violation of any of the terms, conditions and covenants herein contained.

 

11.03.
Notice of Default. Tenant shall give written notice of any
failure by Landlord to perform any of its obligations under this Lease to Landlord
and to any ground lessor, mortgagee or beneficiary under any deed of trust
encumbering the Property whose name and address have been furnished to Tenant
in writing. Landlord shall not be in default under this Lease unless Landlord (or
such ground lessor, mortgagee or beneficiary) fails to cure such
non-performance within thirty (30) days after receipt of Tenant’s notice.
However, if such non-performance reasonably requires more than thirty (30) days
to cure. Landlord shall not be in default if such cure is commenced within such
thirty (30) day period and thereafter diligently pursued to completion.

 

11.04.
Limitation of Landlord’s Liability. As used in this Lease,
the term “Landlord” means only the current owner or owners of the fee title to
the Property or the leasehold estate under a ground lease of the Property at
the time in question. Each Landlord is obligated to perform the obligations of
Landlord under this Lease only during the time such Landlord owns such interest
or title. Any Landlord who transfers its title or interest is relieved of all
liability with respect to the obligations of Landlord under this Lease to be
performed on or after the date of transfer. However, each Landlord shall
deliver to its transferee all funds previously paid by Tenant if such funds
have not yet been applied under the terms of this Lease.

 

ARTICLE TWELVE: LANDLORD’S LIEN

 

ARTICLE THIRTEEN: PROTECTION OF
LENDERS

 

13.01. Subordination.
Landlord shall have the right to subordinate this Lease to any ground Lease,
deed or trust or mortgage encumbering the Property, and advances made on the
security thereof and any renewals, modifications, consolidations, replacements
or extensions thereof, whenever made or recorded. However, Tenant’s right to quiet
possession of the Property during the Lease Term shall not be disturbed if
Tenant pays the rent and performs all of Tenant’s obligations under this Lease
and is not otherwise its default. If any ground lessor, beneficiary or
mortgagee elects to have this Lease prior to the lien of its ground lease, deed
of trust or mortgage and gives written notice thereof to Tenant, this Lease
shall be deemed prior to such ground lease, deed of trust or mortgage whether
this Lease is dated prior or subsequent to the date of said ground lease, deed
of trust or mortgage or the date of recording thereof.

 

13.02.
Attornment. If Landlord’s interest in the Property is
acquired by any ground lessor, beneficiary under a deed of trust, mortgagee or
purchaser at a foreclosure sale. Tenant shall attorn to the transferee of or
successor to Landlord’s interest in the Property and recognize such transferee
or successor as Landlord under this Lease. Tenant waives the protection of any
statute or rule of law which gives or purports to give Tenant any right to
terminate this Lease or surrender possession of the Property upon the transfer
of Landlord’s interest.

 

13.03.
Signing of Documents. Tenant shall sign and deliver any
instruments or documents necessary or appropriate to evidence any such attornment
or subordination or agreement to do so. If Tenant fails to do so within ten (10) days
after written request. Tenant hereby makes, constitutes and irrevocably
appoints Landlord, or any transferee or successor of Landlord, the
attorney-in-fact of Tenant to execute and deliver any such instrument or
document.

 

13.04.
Estoppel Certificates.  

[ILLEGIBLE] Tenant shall
execute, acknowledge and deliver to Landlord a written statement certifying:
(i)

[ILLEGIBLE]

 

true and accurate
statement as of the date of such statement. All financial statements shall be
confidential and shall be used only for the purposes set forth herein.

 

ARTICLE FIFTEEN: MISCELLANEOUS

 

15.01.
Force Majeure. In the event performance by Landlord of any
term, condition or covenant in this Lease is delayed or prevented by any Act of
God, strike, lockout, shortage of material or labor, restriction by any
governmental authority, civil riot, flood, or any other cause not within the
control of Landlord, the period for performance of such term, condition or
covenant shall be extended for a period equal to the period Landlord is so
delayed or hindered.

 

15.02.
Interpretation. The captions of the Articles or Sections of
this Lease are to assist the parties in reading this Lease and are not a part
of the terms or provisions of this Lease. Whenever required by the context of
this Lease, the singular shall include the plural and the plural shall include
the singular. For convenience, each party hereto is referred to in the neuter gender,
but the masculine, feminine and neuter genders shall each include the other. In
any provision relating to the conduct, acts or omissions of Tenant, the term “Tenant”
shall include Tenant’s agents, employees, contractors, invitees, successors or
others using the Property with Tenant’s expressed or implied permission.

 

15.03.
Waivers. All waivers must be in writing and signed by the
waiving party. Landlord’s failure to enforce any provisions of this Lease or
its acceptance of rent shall not be a waiver and shall not prevent Landlord
from enforcing that provision or any other provision of this Lease in the
future. No statement on a payment check from Tenant or in a letter accompanying
a payment check shall be binding on Landlord. Landlord may, with or without
notice to Tenant, negotiate such check without being bound to the conditions of
such statement.

 

14.04. Severability.  A determination by a court of competent
jurisdiction that any provision of this Lease or any part thereof is illegal or

 

 

15.09.
Venue. All obligations hereunder, including but not limited
to the payment of commissions to the Principal REALTOR®. shall be performable and payable in
Dallas, Dallas County, Texas.

 

15.10.
Governing Law. The laws of the State of Texas shall govern
this Lease.

 

15.11.
Survival. All obligations of any party hereto not fulfilled
at the expiration or the earlier termination of this Lease shall survive such
expiration or earlier termination as continuing obligations of such party.

 

15.12.
Binding Effect. This Lease shall inure to the benefit and be
binding upon each of the parties hereto and their heirs, re- presentatives,
successors and assigns; provided, however, Landlord shall have no obligation to
Tenant’s successors or assigns unless the rights or interests of such successors
or assigns are acquired in accordance with the terms of this Lease.

 

15.13. Execution
as Offer. The execution of this Lease by the first party to
do so constitutes an offer to lease the Property. Unless within the number of
days stated in Section 1.15 above from the date of its execution by the
first party to do so, this Lease is accepted by the other party and a fully
executed copy is delivered to the first party, such offer shall be
automatically revoked and terminated.

 

ARTICLE SIXTEEN: ADDITIONAL
PROVISIONS AND RIDERS

 

Additional provisions may
be set forth in-the blank space below, and/or a rider or riders attached
hereto. If no additional provisions are to be inserted in the blank space
below, please draw a line through such space. If no rider or riders are to be
attached hereto, please state “no riders” in the blank space below. If a rider
or riders are to be attached hereto, please state in the blank space below: “See
rider or riders attached,” and please have Landlord and Tenant initial all such
riders.

 

See riders attached:

 

1.                                       Exhibit
‘A’ – Legal Description 

 

2.                                       Exhibit
‘D’ – Rules and Regulations

 

3.                                       Exhibit
‘E’ – Environmental Condition of Premises

 

The Landlord warrants
that there is a Five Year warranty from the manafacturer on the units installed
January, 1996, which is for parts only. 

 

	
  EXECUTED
  as of the date stated in Section 1.01 above.

  	
   

  
	
   

  	
   

  
	
  ATTEST:

  	
  LANDLORD:

  	
  /s/ Neil Felder

  
	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  /s/ Neil
  Felder

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Titl: 

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date of Execution by
  Landlord:

  	
   

  
	
   

  	
   

  	
  2-12-96

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ATTEST

  	
   

  	
  TENANT: 

  	
  /s/ [ILLEGIBLE] 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By  : 

  	
  Metroplex Control Systems,
  Inc.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title  :
  

  	
   President 

  
					

 

 

EXHIBIT A

 

Tract I

 

Being a tract of land
situated in the E.W. Hunt Survey, Abstract No. 590, in the City of Dallas,
Dallas County, Texas, also being part of Block 2/6512 of Walnut Business Park
Addition, filed on May 3, 1978 as recorded in Volume 78086, Page 0001
of the Deed Records of Dallas County, Texas, and being more particularly described
as follows:

 

Commencing at the
intersection of the North R.O.W. line (60’ R.O.W.) of Arbuckle Court and the
West R.O.W. line (60’ R.O.W.) of Ables Lane;

 

THENCE, N 89° 56’ 00” W,
with said North R.O.W. line of Arbuckle Court for a distance of 250.00 feet to
a point;

 

THENCE, N 0° 04’ E, for a
distance of 177.14 feet to an iron rod set for corner at the POINT OF
BEGINNING;

 

THENCE, N 89° 56’ 00” W,
for a distance of 120.00 feet to an “X” cut in concrete for corner;

 

THENCE, N 0° 04’ 00” E,
for a distance of 209.04 feet to an “X” cut in concrete for corner in the South
R.O.W. line (53’ R.O.W.) of Southwell Road;

 

THENCE, N 89° 36’ 30” E,
with said South R.O.W. line of Southwell Road for a distance of 120.00 feet to
an iron rod set for corner;

 

THENCE, S 0° 04’ W, for a
distance of 210.00 feet to the POINT OF BEGINNING AND CONTAINING 25,142.4
square feet or 0.577 acres of land, more or less.

 

 

EXHIBIT
“D”

 

RULES AND
REGULATIONS

 

The following Rules and
Regulations are prescribed by Landlord in order to provide and maintain, to the
best of Landlord’s ability, orderly, clean and desirable Leased Premises,
building and parking facilities for the tenants therein and to regulate conduct
in and use of Leased Premises, the building and parking facilities in such a
manner as to minimize interference by others in the proper use of Leased
Premises by Tenant. In the following Rules and Regulations, all references to
Tenant include not only the Tenant, but, also, Tenant’s agents, servants,
employees, invitees, licensees, visitors, assignees, and/or sublessees:

 

1.                                       Tenant
shall not block or obstruct any of the entries, passages, doors, hallways, or
stairways of building or parking area, or place, empty, or throw any rubbish,
litter, trash, or material of any nature into such areas, or permit such areas
to be used at any time except for ingress or egress of Tenants.

 

2.                                       Landlord
will not be responsible for lost or stolen personal property, equipment, money,
or any article taken from the Leased Premises, building, or parking facilities
regardless of how or when loss occurs.

 

3.                                       The
plumbing facilities shall not be used for any other purpose than that for which
they are constructed, and no foreign substance of any kind shall be placed
therein, and the expense of any breakage, stoppage, or damage resulting from a
violation of this provision shall be borne by Tenant.

 

4.                                       Tenant
shall permit Landlord, during the six (6) months prior to the termination of
this lease to show Leased Premises during business or non-business hours to
prospective lessees and to advertise Leased Premises for rent.

 

5.                                       Any
additional keys required by Tenant during the term of this lease shall be
requested from Landlord and shall be paid for by Tenant upon delivery of keys
to premises. In the event new locks are requested by Tenant, then all costs
associated with such request (including hardware, installation and keys) shall
be paid by Tenant.

 

6.                                       The
common parking facilities are available for use by any and all Tenants.
Landlord reserves the right to assign or allocate parking in the event of
conflicts, abuse or improper use of these common parking facilities. It is
generally understood that any Tenant should utilize only those parking spaces
immediately adjacent to that Tenant’s specific Leased Premises.

 

Proper use of the common parking facilities is deemed
to be that use which is occasioned by the normal in and out traffic required by
the Tenant, in the normal course of the Tenant’s business operations.

 

Vehicles that are abandoned, disabled, have expired
registration stickers, obstructing any means of ingress or egress to any Leased
Premises, or in any way a general nuisance or hazard are subject to removal,
without notice by Landlord’s designated wrecker and towing service. All costs
associated with such removal shall be at the Tenant’s/Vehicle Owner’s expense.

 

7.                                       Tenant
shall not use the building, Leased Premises, or parking facilities for housing,
lodging, or sleeping purposes without express consent of Landlord in writing.

 

 

EXHIBIT
“E”

 

ENVIRONMENTAL
CONDITION OF PREMISES

 

STUDIES

 

Tenant shall furnish
Landlord with a complete and legible copy of any study, report, test, survey or
investigation performed by or on behalf of Tenant at any time involving the leased
Premises and shall fully restore all areas and improvements where samples were
taken or work performed and repair all damage resulting from any of the same
and shall indemnify and hold Landlord harmless from and against all claims,
actions, liabilities, damages, losses, injuries or deaths in connection with or
arising out of or from any inspection, testing, sampling, or similar or
dissimilar activity conducted by Tenant, Tenant’s agents or contractors at any
time at the leased Premises or the Building for hazardous or toxic materials,
whether under this Paragraph or Paragraphs (b) or (c) following or otherwise
under or in connection with this Lease.

 

INSPECTIONS

 

Landlord and Tenant shall
each have the right to periodically inspect, take samples for testing and
otherwise investigate the leased Premises for the presence of hazardous or
toxic materials. In this regard each party may conduct, or have conducted, such
studies and investigations, conduct, or have conducted, such tests and surveys,
and engage such specialists as, it deems appropriate to fairly evaluate the leased
Premises and any risk from hazardous or toxic materials. In connection with any
inspections, samples, surveys or tests to be performed by Landlord, Landlord
shall not unreasonably interfere with Tenant’s business operations at the leased
Premises and shall repair and damage to Tenant’s property, inventory or
fixtures damaged as a result of such inspections, samples, surveys or tests and
upon request shall furnish Tenant with a true and complete copy of any
resulting report, survey or study. In connection with any inspections, samples,
surveys or tests to be conducted by Tenant at the leased Premises, Tenant shall:
(i) first notify Landlord of each proposed inspection, sample, survey or test
and the scope, impact, and intent thereof and obtain Landlord’s written consent
to perform the same [which consent shall not be unreasonably withheld or
delayed (but it shall not be unreasonable for Landlord to refuse consent to any
test, sample, survey or inspection intended to penetrate the roof, structural
supports, foundation, exterior or demising walls, or structural elements of the
Building, or which affect building systems, or which may penetrate in any
manner the ground water under the leased Premises)]; and (ii) as stated above,
restore the leased Premises and/or the property on which the leased Premises
are located to the condition existing immediately prior to any such test,
sample, survey and/or inspection and provide Landlord with true and complete
copies of any survey, test, report or study obtained by or for the benefit of
Tenant in connection with hazardous or toxic materials at the leased Premises.

 

PROHIBITION ON PLACEMENT
OR DISPOSAL

 

Tenant shall not
knowingly incorporate into, use, or otherwise place or dispose of at the leased
Premises or in the Building or Project any toxic or hazardous materials in
concentrations or levels sufficient that by the then-applicable EPA, OSHA or
other applicable governmental standards cause the specific materials so
identified to be classified or identified as toxic or hazardous materials except
for the limited purposes of use and storage only where (i) such materials are
in small quantities, properly labeled and contained, (ii) such materials are
handled and disposed of in accordance with the highest accepted industry
standards for safety, storage, use and disposal, (iii) such materials are for
use in the ordinary course of business (i.e., as with office or cleaning
supplies), (iv) notice of and a copy of the current material safety data sheet
is provided to Landlord for each such hazardous or toxic material and (v) such
materials are used, transported, stored, handled and disposed of in accordance
with all applicable governmental laws, rules and regulations. Landlord shall
not knowingly dispose of at the leased Premises, Building or the Project any
toxic or hazardous materials in concentrations or levels sufficient that by
then-applicable EPA, OSHA or other applicable governmental standards cause the
specific materials so identified to be classified or identified as toxic or
hazardous materials and shall otherwise deal with all toxic or hazardous
materials at the leased Premises, Building or Project in a manner that will not
materially and adversely affect Tenant’s access, use or occupancy of the leased
Premises and that any remediation or controls for toxic or hazardous materials
at the leased Premises will be in accordance with all applicable governmental
laws, rules and regulations. If Landlord or Tenant ever has knowledge of the
presence in the leased Premises or the Building or the Project of such toxic or
hazardous materials which affect the leased Premises, the party having
knowledge shall notify the other party thereof in writing promptly after
obtaining such knowledge. For the purposes of this Lease, hazardous or toxic
materials shall mean hazardous or toxic chemicals or any materials or wastes
containing hazardous or toxic chemicals at levels or content which cause such
materials or wastes to be classified as hazardous or toxic as then prescribed
by the prevalent industry practice and standards or by the then-current levels
or content as set from time to time by EPA or OSHA or as defined under 29 CFR
1910 or 29 CFR 1925 or other applicable governmental laws, rules and
regulations.

 

TENANT’S COVENANTS TO
REMOVE

 

If Tenant or its
employees, agents, or contractors shall ever violate the provisions or
Paragraphs (b) or (c) above (that apply to Tenant regarding toxic or hazardous
materials), or if Tenant’s acts, negligence, breach of this provision or
business operations directly and materially expand the scope of or materially
worsen any contamination from toxic or hazardous materials, then Tenant shall
clean-up, remove and dispose of the material causing the violation, in
compliance with all applicable governmental standards, laws, rules and regulations
and repair any damage to the leased Premises or [ILLEGIBLE]

 

 

	
  MCS

  	
  Metroplex Control Systems, Inc.

  
	
   

  	
   

  
	
   

  	
  2472 Southwell  Dallas, TX 75229-4518  Phone: 972.406.9300  Fax: 972.406.1625

  

 

Fax
Cover Letter

 

Date: 3/7/00

 

 

To:  Joel Heiser

 

Company:

 

Fax Number: (216)
696-2645

 

 

From: Jim 

 

Regarding: 

 

Fax Number: (972)
406-1625

 

Number of Pages,
including cover sheet: 2

 

Comments:  Last page of previous fax sent.

 

 

If You Do
Not Receive All of the Pages, 

Please
Call (972) 406-9300 As Soon As Possible

 

 

**************************

**** ACTIVITY
REPORT ****

**************************

 

	
   

  	
  TRANSMISSION
  OK

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TX/RX NO.

  	
  5186

  
	
   

  	
  CONNECTION TEL

  	
  12166962645

  
	
   

  	
  CONNECTION ID

  	
   

  
	
   

  	
  START TIME

  	
  03/07 13:24

  
	
   

  	
  USAGE TIME

  	
  01’47

  
	
   

  	
  PAGES

  	
  2

  
	
   

  	
  RESULT

  	
  OK

  

 

 

	
  MCS

  	
  Metroplex Control Systems, Inc.

  
	
   

  	
   

  
	
   

  	
  2472 Southwell  Dallas, TX 75229-4518  Phone: 972.406.9300  Fax: 972.406.1625

  

 

Fax
Cover Letter

 

Date: 3/7/00

 

 

To: Joel Heiser

 

Company:

 

Fax Number: (216)
696-2645

 

 

From: Jim Moxon

 

Regarding: Lease

 

Fax Number: (972)
406-1625

 

Number of Pages,
including cover sheet: 12

 

Comments:  

 

 

 

If You Do
Not Receive All of the Pages, 

Please
Call (972) 406-9300 As Soon As Possible

 

 

**************************

**** ACTIVITY
REPORT ****

**************************

 

	
   

  	
  TRANSMISSION
  OK

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TX/RX NO.

  	
  5183

  
	
   

  	
  CONNECTION TEL

  	
  12166962645

  
	
   

  	
  CONNECTION ID

  	
   

  
	
   

  	
  START TIME

  	
  03/07 12:31

  
	
   

  	
  USAGE TIME

  	
  12’35

  
	
   

  	
  PAGES

  	
  11

  
	
   

  	
  RESULT

  	
  OKExhibit 10.61

 

	
  

  	
   

  	
   

  
	
  Metroplex

  	
  7388 S Revere Pkwy,
  Unit 603  Centennial, CO 80112

  
	
  Control Systems

  	
  Phone (720) 875-0303  ·  Fax (720) 875-0800

  
	
  An ISI Detention
  Contracting Group. Inc. Company

  	
  www.metroplex-control.com

  

 

FACSIMILE
TRANSMITTAL SHEET

 

	
  TO:

  	
   

  	
  FROM:

  
	
  Mike
  Sweet

  	
   

  	
  Melissa
  Dolan

  
	
   

  	
   

  	
   

  
	
  COMPANY:

  	
   

  	
  DATE:

  
	
  ISI

  	
   

  	
  1/29/2004

  
	
   

  	
   

  	
   

  
	
  FAX NUMBER:

  	
   

  	
  TOTAL NO. OF PAGES INCLUDING
  COVER:

  
	
   

  	
   

  	
  4

  
	
   

  	
   

  	
   

  
	
  PHONES NUMBER:

  	
   

  	
  SENDER’S REFERENCE
  NUMBER:

  
	
   

  	
   

  	
   

  
	
  RE:

  	
   

  	
  YOUR REFERENCE NUMBER:

  
	
  Building
  Lease

  	
   

  	
   

  

 

	
  o URGENT

  	
   

  	
  x FOR REVIEW

  	
   

  	
  o PLEASE COMMENT

  	
   

  	
  o PLEASE REPLY

  	
   

  	
  o PLEASE RECYCLE

  

 

Mike,

 

I was told by Bruce that
you needed the following information in regards to our lease. Please see the
attached. If you need any additional information please let me know.

 

Thank you,

 

	
  /s/
  Melissa Dolan

  	
   

  
	
  Melissa
  Dolan

  	
   

  

 

 

 

Triple Net
Properties, LLC

 

January 29, 2004

 

	
  Ms, Melissa Dolan

  	
   

  	
   

  
	
  MCFSA. LTD.

  	
   

  	
  Via Fax (720) 875-0800

  
	
  7388 S. Revere Parkway,
  Suite 601

  	
   

  	
   

  
	
  Centennial CO 80112

  	
   

  	
   

  

 

	
  Re:

  	
   

  	
  MCFSA, Ltd.

  
	
   

  	
   

  	
  Suite 601

  
	
   

  	
   

  	
  Arapahoe Business Part
  1

  
	
   

  	
   

  	
  Centennial, Colorado

  

 

Dear Melissa: 

 

Thank you for your phone
call today. I have attached our letter to you of December 15, 2003 which
details your operating expenses for 2004.

 

In addition to that
letter, following is the Base Rent charges in accordance with your lease for
2004:

 

Base Rent (1/1/04-8/31/04)                                  $3,890.00/mo.

Base Rent (9/1/04-12/31/04)                                $4,006.70.mo.

 

Should you have any
additional needs, please let me know.

 

Thank you,

 

Sincerely,

 

TRIPLE NET PROPERTIES, LLC

 

	
  /s/ Sharon Ott

  	
   

  
	
  Sharon Ott

  
	
  Assistant Property
  Manager

  

 

Encl.

 

3410 S. Galena, Suite 220 · Denver, CO
80231

303.300.4910 · fax
303.300.4913

 

 

December 15, 2003

 

MCFSA. LTD.

7388 South Revere
Parkway, Suite 601

Centennial, CO 80112

 

	
  Re:

  	
   

  	
  MCFSA, Ltd.,
  Suite 601

  
	
   

  	
   

  	
  Arapahoe Business Park I
  Centennial, Colorado

  
	
   

  	
   

  	
  2004 Operating Expense
  Budget

  

 

Dear Tenant:

 

Attached please find your
estimated 2004 Operating Expense Budget for your business location at Arapahoe
Business Park I in Centennial, Colorado.

 

Please review and note
that 2004 monthly additional rent charges will change effective January 1,
2004. Attached you will find a list of estimated operating expenses for 2004
and a worksheet with the breakdown of your prorata share. Below is the amount
of your previous operating expenses and your 2004 estimated operating expenses.
Should you have any questions please call me direct at (303) 300-4910.

 

	
   

  	
   

  	
  2003 Operating Expenses

  	
   

  	
  2004 Est. Operating Expenses

  	
   

  	
  Change

  	
   

  
	
  CAM

  	
   

  	
  $

  	
  1,909.99

  	
   

  	
  $

  	
  1,406.32

  	
   

  	
  $

  	
  (503.67

  	
  )

  
	
  Insurance

  	
   

  	
  136.15

  	
   

  	
  146.94

  	
   

  	
  10.79

  	
   

  
	
  Property Tax

  	
   

  	
  1,843.86

  	
   

  	
  1,780.03

  	
   

  	
  (63.83

  	
  )

  
	
  Total

  	
   

  	
  $

  	
  3,890.00

  	
   

  	
  $

  	
  3,333.29

  	
   

  	
  $

  	
  (556.71

  	
  )

  

 

Sincerely,

 

TRIPLE NET PROPERTIES, LLC

 

	
  /s/ Meredith Witucki

  	
   

  
	
  Meredith Witucki

  
	
  Portfolio Manager

  

 

Enclosure

 

1551 North Tustin Avenue,
Suite 200 · Santa Ana, CA 92705

tel 714.667.8252 ·
toll-free 877.888.REIT (7348) · 714.836.5263 · fax
714.667.6860

 

 

ARAPAHOE
BUSINESS PARK I

2004
ESTIMATED OPERATING EXPENSES

 

	
  TENANT:

  	
   

  	
   

  	
   

  	
  MCFSA, Ltd.

  	
   

  
	
  SPACE NO.:

  	
   

  	
   

  	
   

  	
  601

  	
   

  
	
  START:

  	
   

  	
   

  	
   

  	
  1/1/1998

  	
   

  
	
  END:

  	
   

  	
   

  	
   

  	
  12/31/2007

  	
   

  
	
  SQ. FT.:

  	
   

  	
   

  	
   

  	
  7,780

  	
   

  
	
  CAM SQ.FT.

  	
   

  	
  55,163

  	
   

  	
  14,10

  	
  %

  
	
  INSURANCE SQ.FT.

  	
   

  	
  55,163

  	
   

  	
  14.10

  	
  %

  
	
  PROPERTY TAX SQ.FT.

  	
   

  	
  55,163

  	
   

  	
  14.10

  	
  %

  

 

	
  CAM EXPENSES:

  	
   

  	
  COMMON
  AREA

  ONLY

  	
   

  	
  PRORATA
  SHARE

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Landscaping
  Contract & Supplies

  	
   

  	
  $

  	
  17,380.00

  	
   

  	
  2,451,22

  	
   

  
	
  Sweeping

  	
   

  	
  $

  	
  2,328.00

  	
   

  	
  328.33

  	
   

  
	
  Snow Removal

  	
   

  	
  $

  	
  11,000.00

  	
   

  	
  1,551.40

  	
   

  
	
  Steam Cleaning

  	
   

  	
  $

  	
  —

  	
   

  	
  —

  	
   

  
	
  Dayporter/Janitorial

  	
   

  	
  $

  	
  —

  	
   

  	
  —

  	
   

  
	
  HVAC

  	
   

  	
  $

  	
  12,300.00

  	
   

  	
  1,734.75

  	
   

  
	
  Exterior Repairs

  	
   

  	
  $

  	
  3,640.00

  	
   

  	
  513.37

  	
   

  
	
  Security Guard
  Service

  	
   

  	
  $

  	
  —

  	
   

  	
  —

  	
   

  
	
  Lighting
  Maintenance & Repair

  	
   

  	
  $

  	
  —

  	
   

  	
  —

  	
   

  
	
  Parking Lot
  & Common Area

  	
   

  	
  $

  	
  1,320.00

  	
   

  	
  186.17

  	
   

  
	
  Fire Alarm
  Monitoring

  	
   

  	
  $

  	
  5,724.00

  	
   

  	
  807.29

  	
   

  
	
  Building R/M

  	
   

  	
  $

  	
  9,808.00

  	
   

  	
  1,394.80

  	
   

  
	
  Electricity

  	
   

  	
  $

  	
  1,980.00

  	
   

  	
  279.25

  	
   

  
	
  Water-Irrigation

  	
   

  	
  $

  	
  —

  	
   

  	
  —

  	
   

  
	
  Water-Buildings

  	
   

  	
  $

  	
  9,480.00

  	
   

  	
  1,337.03

  	
   

  
	
  Trash Disposal

  	
   

  	
  $

  	
  6,480.00

  	
   

  	
  913.92

  	
   

  
	
  Sewar

  	
   

  	
  $

  	
  —

  	
   

  	
  —

  	
   

  
	
  SUB-TOTAL
  EXPENSES:

  	
   

  	
  $

  	
  81,238.00

  	
   

  	
  $

  	
  11,457.53

  	
   

  
	
  Administrative
  Fee

  	
   

  	
  $

  	
  15,884.00

  	
   

  	
  2,237.40

  	
   

  
	
  Management
  Fee/Payroll Reimburser

  	
   

  	
  $

  	
  22,553.71

  	
   

  	
  3,180.90

  	
   

  
	
  Property Taxes

  	
   

  	
  $

  	
  151,452.50

  	
   

  	
  21,380.34

  	
   

  
	
  Insurance-Building
  & Liability

  	
   

  	
  $

  	
  12,502.50

  	
   

  	
  1,763.31

  	
   

  
	
  SUB-TOTAL
  CAM:

  	
   

  	
  $

  	
  283,610.71

  	
   

  	
  $

  	
  39,999.45

  	
   

  
	
  DAYS IN
  YEAR:

  	
   

  	
   

  	
   

  	
  365

  	
   

  
	
  DAYS\OCCUPANCY:

  	
   

  	
   

  	
   

  	
  319

  	
   

  
	
  PRORATION:

  	
   

  	
   

  	
   

  	
  34,999.55

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Monthly Estimate
  - CAM

  	
   

  	
   

  	
   

  	
  1,406.32

  	
   

  
	
  Monthly Estimate
  - INS

  	
   

  	
   

  	
   

  	
  146.94

  	
   

  
	
  Monthly Estimate
  - TAX

  	
   

  	
   

  	
   

  	
  1,780.03

  	
   

  
	
  Total Monthly
  Charges

  	
   

  	
   

  	
   

  	
  3,333.29

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PSF:

  	
   

  	
   

  	
   

  	
  0.37

  	
   

  
									

 

 

ARAPAHOE BUSINESS
PARK I LEASE AGREEMENT

 

between

 

WKB VALUE
PARTNERS,

 

a Delaware limited
partnership

 

as Landlord

 

and

 

MCFSA, LTD., a
Texas limited partnership

 

d/b/a Metroplex
Control Systems

 

as Tenant

 

 

TABLE OF CONTENTS

 

	
  1. 

  	
  Definitions; Basic Lease Information

  	
  1

  
	
  2. 

  	
  Premises and Term

  	
  3

  
	
  3.

  	
  Monthly Base Rent and Security Deposit

  	
  4

  
	
  4. 

  	
  Use; Compliance with Laws and Rules and
  Regulations

  	
  4

  
	
  5. 

  	
  Operating Expenses; Payment of Tenant’s Pro Rata
  Share

  	
  6

  
	
  6. 

  	
  Landlord’s Repairs

  	
  8

  
	
  7. 

  	
  Tenant’s Repairs

  	
  9

  
	
  8. 

  	
  Alterations

  	
  10

  
	
  9. 

  	
  Signs

  	
  12

  
	
  10.

  	
  Landlord’s Right of Access; Inspection

  	
  12

  
	
  11.

  	
  Utilities

  	
  13

  
	
  12. 

  	
  Assignment and Subletting

  	
  13

  
	
  13. 

  	
  Insurance

  	
  14

  
	
  14. 

  	
  Damage and Destruction

  	
  17

  
	
  15. 

  	
  Condemnation

  	
  18

  
	
  16. 

  	
  Holding Over

  	
  18

  
	
  17. 

  	
  Quiet Enjoyment

  	
  19

  
	
  18. 

  	
  Events of Default

  	
  19

  
	
  19.

  	
  Remedies

  	
  20

  
	
  20. 

  	
  Bankruptcy or Insolvency; Assumption; Adequate
  Protection

  	
  23

  
	
  21. 

  	
  Subordination and Attornment

  	
  26

  
	
  22. 

  	
  Mechanic’s Liens and Tenant’s Taxes

  	
  26

  
	
  23. 

  	
  Authorities for Action and Notice

  	
  28

  
	
  24. 

  	
  Estoppel Certificates

  	
  28

  
	
  25. 

  	
  Landlord’s Review of Tenant’s Documents

  	
  29

  
	
  26.

  	
  Miscellaneous

  	
  29

  

 

i

 

ARAPAIIOE
BUSINESS PARK I LEASE AGREEMENT

 

THIS ARAPAHOE BUSINESS PARK I LEASE AGREEMENT (“Lease”)
is entered into by Landlord and Tenant (as defined in Section 1). In
consideration of the mutual covenants hereinafter set forth, Landlord and
Tenant agree as follows: 

 

1.                                       Definitions; Basic Lease Information.  In
addition to the terms defined elsewhere in this Lease, the following terms, as
used in this Lease, have the following meanings:

 

(a)                                  LEASE
DATE: November 19, 2002

 

(b)                                 TENANT:  MCFSA,
LTD., a Texas limited partnership

 

(c)                                  TENANT’S
TRADE NAME:  Metroplex Control Systems

 

(d)                                 TENANT’S
ADDRESS:  Premises and 12903 Delivery Drive, San Antonio, Texas 78247

 

(e)                                  LANDLORD:  WKB
VALUE PARTNERS, a Delaware limited partnership.

 

(f)                                    LANDLORD’S
ADDRESS:  4343 Von Karman Avenue, Newport Beach, California 92660.

 

(g)                                 COMMENCEMENT
DATE:  January 1,2003 (as the same may be extended pursuant to Section 2).

 

(h)                                 EXPIRATION
DATE:  August 31, 2008 (as the same may be extended pursuant to Section 2).

 

(i)                                     SECURITY
DEPOSIT:  $4,075.82

 

(j)                                     MONTHLY
BASE RENT:  Subject to adjustment pursuant to section 3(a):

 

 

	
  Calendar Period

  	
   

  	
  Monthly Base Rent

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  January 1, 2003 through August 31, 2004 inclusive

  	
   

  	
  $

  	
   3,890.00

  	
   

  
	
  September 1, 2004 through August 31, 2005 inclusive

  	
   

  	
  $

  	
   4,006.70

  	
   

  
	
  September 1,
  2005 through August 31, 2006 inclusive

  	
   

  	
  $

  	
  4,126.90

  	
   

  
	
  September 1,
  2006 through August 31, 2007 inclusive

  	
   

  	
  $

  	
  4,250.71

  	
   

  
	
  September 1,
  2007 through August 31, 2008 inclusive

  	
   

  	
  $

  	
  4,378.23

  	
   

  

 

(k)                                  RENTABLE
AREA OF PREMISES:  7,780 square feet.

 

(l)                                     RENTABLE
AREA OF PROJECT:  55,163 square feet.

 

(m)                               TENANTS
PRO RATA SHARE:  14.10 percent.

 

1

 

(n)                                 PERMITTED
USE OF PREMISES:  General office and warehouse use.

 

	
  (o)                                 BROKER:

  	
  Frederick Ross Company
  (“Landlord’s Broker”)

  Meridian Commercial
  Real Estate Associates, LLC

  (“Tenant’s Broker”)

  

 

(p)                                 GUARANTOR
AND RELATIONSHIP TO TENANT:   None.

 

(q)                                 PREMISES:  The
premises shown on Exhibit A attached hereto and made a part hereof
arid known as 7388 South Revere Parkway, Units 601 through 604, Centennial,
Colorado 80112. The area of the Premises and the Project have been determined
by Landlord and are conclusive in the absence of fraud or manifest error. The
Premises do not include, and Landlord reserves, the exterior walls and roof of
the Premises, the land beneath the Premises, and the pipes and ducts, conduits,
wires, fixtures and equipment above the suspended ceiling or structural
elements which serve the Premises or Project; however, Landlord has the right
to enter the Premises in order to install, inspect, maintain, use, repair and
replace those areas and items described in the preceding clause.

 

(r)                                    PROJECT:  Those
certain office and light industrial buildings with an address of 7388 South
Revere Parkway, Centennial, CO 80112, commonly known as “Arapahoe Business Park
I,” located on the real property described on Exhibit B attached
hereto and made a part hereof (the “Land”), and all improvements built on the
Land including without limitation the parking lot, walkways, driveways, fences
and landscaping.

 

(s)                                  ADDITIONAL
RENT:  Any amounts, other than Monthly Base Rent, which Tenant is
required or agrees to pay hereunder, including but not limited to Operating
Expenses (as hereinafter defined), late charges, reimbursements, repairs and
attorneys’ fees and costs incurred by Landlord in enforcing this Lease.

 

(t)                                    RENT:  The
Monthly Base Rent and Additional Rent.

 

(u)                                 ESTIMATED
OPERATING EXPENSES:  Operating Expenses for calendar year 2002, are
currently estimated at $4.64 per square foot. Tenant acknowledges and agrees
that such amount is only an estimate, based on currently available information
and that Operating Expenses will most likely increase for the calendar year
2003.

 

The following addenda and
exhibits are attached to this Lease and made a part hereof:

 

Addendum

Exhibit A - Premises

Exhibit B - Legal Description of the Project

Exhibit C - Estoppel and Commencement Date
Certificate

 

2

 

Exhibit D - Guaranty of Lease

Exhibit E - Rules and Regulations

Exhibit F - Work Letter Agreement

Exhibit G - Tenant Estoppel Certificate

 

2.                                      Premises and Term.

 

(a)                                  Granting
Clause.  In consideration of the obligation of Tenant to pay
Rent, and in consideration of the other covenants, representations and
warranties of Tenant set forth in this Lease, Landlord leases to Tenant, and,
in consideration of Landlord’s covenants set forth in this Lease, Tenant leases
from Landlord the Premises, for a term commencing on the Commencement Date and
ending on the Expiration Date (the “Primary Lease Term”). The Primary Lease
Term as extended by any Extended Term provided for in the Addendum attached
hereto is hereinafter referred to as the “Term.”

 

(b)                                 Delivery
of Premises.  Except to the extent modified by Landlord’s express
assumption of construction obligations, if any, in Exhibit F
attached to this lease, the Premises is being leased “AS IS,” with Tenant
accepting all defects, if any; and Landlord makes no warranty of any kind,
express or implied, with respect to the Premises (without limitation, Landlord
makes no warranty as the habitability, fitness or suitability of the Premises
for a particular purpose nor as to the absence of any toxic or otherwise
hazardous substances). This Section 2(b) is subject to any contrary
requirements under applicable law; however, in this regard Tenant acknowledges
that it has been given the opportunity to inspect the Premises and to have
qualified experts inspect the Premises prior to the execution of this lease.
Notwithstanding the date set forth in Section 1, the Commencement Date
will be the date upon which Landlord notifies Tenant in writing that the
Premises are ready for occupancy by Tenant. Taking of possession of the
Premises by Tenant will conclusively establish that the Premises are complete
and in good and satisfactory condition, as of when possession is so taken.
After such Commencement Date, Tenant will, upon demand, execute and deliver to
Landlord an Estoppel and Commencement Date Certificate in the form of Exhibit C
attached hereto and made a part hereof.

 

(c)                                  Delayed
Possession.  This Lease shall not be void or voidable nor shall
Landlord be liable to Tenant for any loss or damage resulting from any delay in
delivering possession of the Premises to Tenant. If such delay is not caused by
or attributable to Tenant, its servants, agents or independent contractors, no
Rent shall be payable by Tenant until Landlord can so deliver possession of all
the Premises. If Landlord is delayed in delivering possession of the Premises
by any delay, interference or hindrance of such work by Tenant, Tenant’s
contractors or any of their employees or agents, or by any changes in such work
requested by Tenant and agreed to by Landlord or by Tenant’s failure to timely
and properly perform its obligations (if any) imposed pursuant to the Work
Letter Agreement attached hereto as Exhibit F, the Premises shall
be conclusively deemed delivered to Tenant on the date on which the same would
have occurred in the absence of such delay, the Commencement Date shall be
deemed such date, and the Expiration Date shall be adjusted to a date which is
the last day of the month sixty-eight (68) months after the Commencement Date.

 

3

 

3.                                      Monthly Base Rent and Security Deposit.

 

(a)                                  Monthly
Base Rent:  Tenant agrees to pay to Landlord the Monthly Base
Rent for the Premises, in advance, without demand, deduction or set off, for
the entire Term of this Lease. One installment of Monthly Base Rent will be due
and payable on the Commencement Date and a like installment of Monthly Base
Rent will be due and payable on or before the first day of each calendar month
succeeding the Commencement Date; provided that, the Monthly Base Rent for any
fractional calendar month at the commencement or end of the Lease term will be
prorated, based upon the number of days the Premises are or could be occupied
by Tenant. Notwithstanding the foregoing, so long as no event of default has
occurred under this Lease, the following Rent abatements shall occur
(collectively, “Rent Abatement”): (1) Tenant’s Monthly Base Rent shall be
abated for a period of eight (8) months from and after the Commencement
Date, anticipated to be January 1, 2003 through August 31, 2003; and (2) the
Operating Expenses due from Tenant as Additional Rent pursuant to Paragraph
5(a), below, shall be abated for a period of two (2) months from and after
the Commencement Date, anticipated to be January 1, 2003 through February 28,
2003. If Tenant commits an event of default under this Lease, then: (i) Tenant
shall immediately pay to Landlord upon demand a sum equal to the total amount
of Rent Abatement used by Tenant as of the date of the occurrence of such event
of default, and (ii) all Rent Abatement that has not been used by Tenant
as of the date of the occurrence of such event of default shall automatically
terminate and become null and void, and Tenant shall thereafter pay all Base
Monthly Rent and Additional Rent when due under this Lease, without regard to
the rental abatement provisions of this Lease.

 

(b)                                 Security
Deposit:  Tenant shall deposit with Landlord on the Lease Date,
and shall maintain on deposit with Landlord throughout the term hereof, the
Security Deposit, which will be held by Landlord, without obligation for or
accrual of interest, as security for the performance of Tenant’s covenants and
obligations under this Lease. Landlord shall have the right to commingle such
Security Deposit with other funds of Landlord. It is expressly understood and
agreed that such Security Deposit is not an advance rental deposit or a measure
of Landlord’s damages in case of Tenant’s default. Upon any default by Tenant,
Landlord may, from time to time, without prejudice to or waiver of any other
remedy provided in this Lease or provided by law, use such Security Deposit to
the extent necessary to make good any arrearage of Rent or other payments due
Landlord, and any other damage, injury, expense or liability caused by such
default; and Tenant will pay to Landlord on demand the amount so applied in
order to restore the Security Deposit to its original amount. Any unutilized
portion of such Security Deposit will be returned by Landlord to Tenant not
later than sixty (60) days after termination of this Lease, upon the full
performance of this Lease by Tenant and surrender of the Premises by Tenant to
Landlord. Landlord may deliver the Security Deposit (or such unapplied portion
thereof as may be on deposit) to any purchaser of Landlord’s interest in the
Premises, and thereupon Landlord shall be discharged from any obligation or
liability with respect to the Security Deposit.

 

4.                                      Use; Compliance with Laws and Rules and
Regulations.

 

(a)                                  Use.  The
Premises will be used only for the purpose set forth in Section 1(n) and
for no other purpose. Outside storage, including without limitation, trucks and
other

 

4

 

vehicles and the washing
of such vehicles at any time, is prohibited without Landlord’s prior written
consent.

 

(b)                                 Compliance
with Laws.  Tenant will at its sole cost and expense obtain any
and all licenses and permits necessary for the Permitted Use of the Premises.
Tenant shall continuously and promptly, throughout the Term of this Lease,
comply with all governmental laws, ordinances and regulations applicable to the
use of the Premises, or the operation of Tenant’s business (including, without
limitation, the Americans With Disabilities Act of 1990, as amended from time
to time), those Rules and Regulations Set forth on Exhibit E
attached hereto and made a part hereof, as the same may be reasonably modified
or propounded by Landlord from time to time, and with all governmental orders
and directives for the correction, prevention and abatement of nuisances in or
upon, or connected with, the Premises, all at Tenant’s sole expense. Tenant
will not permit any objectionable or unpleasant odors, smoke, dust, gas, noise
or vibrations to emanate from the Premises, nor take any other action which
would constitute a nuisance or would disturb or endanger any other tenants of
the Project or unreasonably interfere with their use of their respective
premises, nor impair, in the opinion of Landlord, the appearance, character or
reputation of the Project. Without Landlord’s prior written consent, Tenant
will not receive, store or otherwise handle any product, material or
merchandise which is noxious, explosive or highly inflammable. Tenant will not
permit the Premises to be used for any purpose or in any manner (including
without limitation any method of storage) which would render the insurance on
the Premises or Project void or the insurance risk more hazardous or cause the
State Board of Insurance or other insurance authority to disallow any sprinkler
credits. If any increase in the fire and extended coverage insurance premiums
paid by Landlord for the Project is caused by Tenant’s use and occupancy of the
Premises, or if Tenant vacates the Premises and causes an increase in such
Premiums, then Tenant will pay as Additional Rent, upon demand, the amount of
such increase to Landlord.

 

(c)                                  Hazardous
Substances.  Tenant’s use and occupancy of the Premises shall in
no manner or way result in the direct or indirect violation of any local, state
or federal law, rule, regulation, ordinance, code, policy or rule of
common law now or hereafter in effect and in each case as amended, and any
judicial or administrative interpretation thereof, pertaining to environmental
regulation, contamination or clean-up (collectively, “Environmental Laws”),
including by way of example and without limitation the Comprehensive
Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C. §§ 9601
et seq., the Resource Conservation and Recovery Act, 42 U.S.C. §§ 6901 et
seq., the Hazardous Materials Transportation Act, 49 U.S.C. §§ 1801 et
seq., the Clean Water Act, 33 U.S.C. §§ 1251 et  seq.,the
Toxic Substances Control Act, 15 U.S.C. §§ 2601 et  seq., the
Clean Air Act, 42 U.S.C. §§ 7401 et  seq., the Safe Drinking Water
Act, 42 U.S.C. §§ 300f et  seq., the Atomic Energy Act, 42 U.S.C.
§§ 2011 et  seq., the Federal Insecticide, Fungicide and Rodenticide
Act, 7 U.S.C. §§ 136 et  seq., the Occupational Safety and Health
Act, 29 U.S.C. §§ 651 et  seq., and any similar statutes of the
State of Colorado. Further, Tenant’s use and occupancy of the Premises shall
not include the use, handling, transportation or storage of any hazardous or
toxic substances, wastes, materials, pollutants or contaminants (including,
without limitation, asbestos or raw materials which include hazardous
constituents) or any other substances or materials which are included under or
regulated by Environmental Laws (collectively, “Hazardous Substances”). Tenant
shall keep or cause the Premises to be kept free from Hazardous Substances and
in compliance with all Environmental Laws, shall expressly prohibit use,
handling, storage, manufacture, transfer

 

5

 

and disposal of Hazardous
Substances on or about the Premises and shall promptly notify Landlord if
Tenant shall become aware of any Hazardous Substances on or about the Premises
or if Tenant shall become aware that the Premises are in direct or indirect
violation of any Environmental Laws. Tenant shall remove such Hazardous
Substances or cure such violations, as applicable, promptly after Tenant
becomes aware of same, at Tenant’s sole expense and in the event Tenant fails
to do so, Landlord may cause the Premises to be freed from any Hazardous
Substances or otherwise brought into conformance with Environmental Laws and
any cost of same shall be Additional Rent payable hereunder immediately upon
demand from Landlord. Tenant hereby grants to Landlord and its agents and
employees access to the Premises and a license to remove any items deemed by
Landlord to be Hazardous Substances and to do all things Landlord shall deem
necessary to bring the Premises in conformance with Environmental Laws. Tenant
hereby agrees to indemnify Landlord and hold Landlord and its successors,
assigns, employees, agents, officers, directors, partners, and attorneys
harmless from and against any and all expenses, damages, suits, liabilities and
costs (including without limitation attorney’s fees and consequential damages)
suffered or incurred by Landlord or any of such parties as a result of the use,
handling, storage, transportation, treatment or disposal of Hazardous
Substances on or about the Premises or the violation of Environmental Laws (as
well as any other laws, ordinances, rules or regulations as set forth in
subsection (a) of this Section 4), even if such damages or costs
shall be suffered or incurred after termination or earlier expiration of this
Lease. Such indemnity shall expressly survive termination of this Lease,
whether by lapse of time or otherwise.

 

5.                                      Operating Expenses; Payment of Tenant’s Pro Rata
Share.

 

(a)                                  Payment
of Tenant’s Pro Rata Share. In addition to the Monthly Base Rent, Tenant
will pay the Landlord on the first day of each calendar month during the Term
of this Lease, as Additional Rent, one-twelfth (1/12) of Tenant’s Pro Rata
Share of Estimated Operating Expenses paid, payable, or incurred during the
subject calendar year or partial calendar year; provided, however, that such
payments shall be abated for two (2) months from and after the
Commencement Date (anticipated to be January 1, 2003, through February 28,
2003) in accordance with Section 3(a), above, so long as no event of
default by Tenant has occurred under this Lease. The Estimated Operating
Expenses are subject to revision according to the provisions of this Section 5(a).
During December of each calendar year or as soon thereafter as
practicable, Landlord will give Tenant written notice of Landlord’s reasonable
estimate of the amounts payable under this Section 5 for the ensuing
calendar year (“New Estimate”). On or before the first day of each calendar
month during the ensuing calendar year, Tenant will pay Landlord one-twelfth
(1/12) of such reasonably estimated amount; provided, however, if such notice
is not given in December, Tenant will continue to pay its Pro Rata Share on the
basis of the prior year’s Estimated Operating Expenses until the calendar month
after such notice is given. In the calendar month in which Tenant first pays
its Pro Rata Share in accordance with Landlord’s New Estimate (and
simultaneously therewith), Tenant will also pay Landlord Tenant’s Pro Rata
Share of any additional amounts payable under the New Estimate, for each
calendar month which has elapsed since December of the prior year(s). If
at any time or times it appears to Landlord that the amounts payable under this
Section 5 for the current calendar year will vary from the Estimated
Operating Expenses or New Estimate, Landlord may, by written notice to Tenant,
revise Landlord’s estimate for such calendar year and subsequent payments by
Tenant for such calendar year will be based upon Landlord’s revised estimate,

 

6

 

including any amounts
required to make up for deficiencies in payments made by Tenant in prior
calendar mantis.

 

(b)                                 Statement
of Operating Expenses. Unless delayed by causes beyond Landlord’s
reasonable control, Landlord shall deliver to Tenant within one hundred twenty
(120) days after the end of each calendar year a written statement (the “Statement”)
setting out in reasonable detail the amount of Tenant’s Operating Expenses for
the preceding calendar year or partial calendar year. If the aggregate of
monthly installments of Tenant’s Operating Expenses actually paid by Tenant to
Landlord during such calendar year or partial calendar year differs from the
amount of Tenant’s Operating Expenses payable for such calendar year or partial
calendar year under this Section 5, as indicated in the Statement, then,
as the case may be, Tenant shall pay the difference to Landlord or Landlord
shall issue a credit to Tenant against the Rent remaining to be paid hereunder
for the difference, or if no Rent then remains to be paid, refund the
difference to Tenant, without interest, within thirty (30) days after the date
of delivery of the Statement. Landlord’s obligation to make any refund pursuant
to this Section 5(b) shall survive the expiration or earlier
termination of this Lease.

 

(c)                                  Operating
Expenses Definition.  The term “Operating Expenses” means and
includes all costs and expenses of any kind or nature incurred by Landlord with
respect to the ownership, maintenance, repair and operation of the Project,
including, by way of example and without limitation, supply costs; maintenance,
replacement and repair costs; the costs of water, sewer, gas, electrical,
security, trash, snow removal, cleaning, landscaping and painting services;
maintenance, repair and replacement of heating, ventilation, and air
conditioning (“HVAC”), plumbing, electrical, mechanical, roof, structural or
like systems or components; any common area costs and expenses (including
parking areas and walkways); labor Costs incurred in the operation and
maintenance of the Project, including wages and other payments; costs to
Landlord for workmen’s compensation and disability insurance, payroll taxes and
welfare and other fringe benefits; reasonable management fees in an amount
customary for properties similar to the Project; an administrative fee equal to
ten percent (10%) of Operating Expenses; legal, accounting, inspection and
consultation fees incurred in connection with the Project; amounts paid to
contractors and subcontractors for work or services performed in connection
with the operation and maintenance of the Project (including common areas,
walkways and parking areas); all “real property taxes” and assessments (whether
general or special, and as further defined below), personal property taxes and
governmental charges of any kind and nature whatsoever including assessments
due to deed restrictions or owners’ associations which accrue against the
Project or any items of personal property utilized in the maintenance, repair
or operation of the Project during the Term of this Lease; all insurance
including, by way of example and without limitation, public liability insurance
and fire and extended coverage insurance with respect to the Project and any
rental insurance and all risk insurance (should Landlord decide to carry the
same) (but Tenant shall have no interest in such insurance or the proceeds
thereof); any expense attributable to costs incurred by Landlord for any
capital improvements to the extent the same are incurred by Landlord to either
comply with changes in any laws, ordinances or regulations applicable to the
Project or to reduce Operating Expenses which costs shall be amortized over the
useful life of the capital improvement; and any other costs, charges and
expenses which under generally accepted accounting principles would be regarded
as maintenance and operating expenses. The term Operating Expenses does not
include repairs, restoration or other work occasioned by fire, windstorm or
other casualty to the extent of

 

7

 

net insurance proceeds
actually received by Landlord, income and franchise taxes of Landlord, expenses
incurred in leasing to or procuring of tenants, leasing commissions,
advertising expenses, expenses for the renovation of space for new tenants
(except to the extent the same are incurred by Landlord to either comply with
changes in any laws, ordinances or regulations applicable to the Project or to
reduce Operating Expenses), nor interest or principal payments on any mortgage
or other indebtedness of Landlord. As used in this paragraph “real property
taxes” and assessments includes ad valorem taxes, general and special
assessments, parking surcharges, and any tax or charge for governmental
services charged against the Premises or that are attributed to the transfer or
transaction directly or indirectly represented by this Lease, by any sublease
or assignment hereunder or by other leases in the Project, or by any document
to which Tenant is a party creating or transferring (or reflecting the creation
or transfer of) any interest or estate in the Premises and any tax or charge
which replaces or is in addition to any of such above-described “real estate
taxes.”

 

(d)                                 If
at any time during the Term of this Lease, the present method of taxation is
changed so that in lieu of the whole or any part of any taxes, assessments or
governmental charges levied, assessed or imposed on real estate and the
improvements on such real estate, there is levied, assessed or imposed on
Landlord a capital levy or other tax directly on the rents received from the
Project or a franchise tax, assessment, levy or charge measured by or based, in
whole or in part, upon such rent for the present or any future building or buildings
on the Project, then all such taxes, assessments, levies or charges, or the
part thereof so measured or based, will be deemed to be included within the
terms “Operating Expenses” and “real property taxes” (as used in subsection (b)
above) for the purposes of this Section 5.

 

(e)                                  Tenant
may, upon reasonable notice, and at a time reasonably convenient to Landlord
audit Landlord’s books relevant to the Additional Rent due under this Section 5.
Tenant agrees to pay all costs associated with or resulting from such audit,
including reimbursement to Landlord for any costs reasonably incurred by
Landlord with respect thereto.

 

(f)                                    Payments
to be made pursuant to this Section 5 with respect to the calendar year in
which this Lease commences or terminates (other than in the event of Tenant’s
default) will be prorated based on the number of calendar months, or portions
thereof, that Tenant occupied or could have occupied the Premises.

 

6.                                      LandLord’s Repairs.  For
a period of six (6) months from and after the Commencement Date, Landlord
will, at Landlord’s expense (subject to Tenant’s payment of Operating Expenses
in accordance with Section 5, above), keep and maintain all HVAC systems,
fixtures, and equipment serving the Premises in good, working order; provided, however,
that Landlord shall not be responsible for repairs or replacements necessitated
by Tenant’s negligence or willful misconduct or associated with HVAC systems,
fixtures or equipment, if any, installed by Tenant in accordance with Section 8,
below. After such six (6) month period, Tenant shall maintain, repair, and
replace the HVAC systems, fixtures and equipment serving the Premises in
accordance with Section 7, below. Except as expressly set forth in the
immediately preceding sentences, Landlord will at its expense maintain only the
roof, foundation and the structural soundness of the exterior walls of the
building or buildings in which the Premises are located in good repair,
reasonable wear and tear excepted. In addition to Tenant’s repair obligations
under Section 7, Tenant will repair and pay for any damage caused to the
roof, foundation or exterior

 

8

 

walls of the Premises or
Project by Tenant, or Tenant’s employees, agents or invitees, or caused by
Tenant’s default under this Lease. The term “walls” as used in this Section 6
does not include windows, glass or plate glass, doors, special Store fronts or
office entryways. Tenant will immediately give Landlord written notice of
defect or need for repairs, after which Landlord will have a reasonable
opportunity to effect such repairs or cure such defect. Landlord’s liability
with respect to any defects, repairs or maintenance for which Landlord is
responsible under any of the provisions of this Lease will be limited to the
cost of such repairs or maintenance or the curing of such defect.

 

7.                                      Tenant’s Repairs.

 

(a)                                  Tenant
will, at its own cost and expense, keep and maintain all parts of the Premises
in good condition, promptly making all necessary repairs and replacements,
including but not limited to, windows, glass and plate glass, doors, any
special office entry, interior walls and finish work, floor coverings, heating
and air conditioning systems and fixtures (subject to Landlord’s performance of
its obligations under Section 6, above, during the first six months of the
Term), dock boards, truck doors, dock bumpers, paving, plumbing work and
fixtures, termite and pest extermination, regular removal of trash and debris,
and keeping the whole of the Premises in a clean and sanitary condition and
appearance. Tenant will not be obligated to repair any damage to the Premises
caused by fire, tornado or other casualty actually covered by the insurance to
be maintained by Landlord pursuant to Section 13(a) below, except
that Tenant will be obligated to repair all wind damage to glass.

 

(b)                                 Tenant
will not damage any demising wall or disturb the integrity and support provided
by any demising wall and will, at its sole cost and expense, promptly repair
any damage or injury to any demising wall caused by Tenant or its employees,
agents, customers, invitees or licensees.

 

(c)                                  Tenant
and its employees, agents, customers, invitees and licensees will have the
right to use the parking areas of the Project, if any, as designated by
Landlord in writing, subject to such reasonable rules and regulations as
Landlord may from time to time prescribe, in common with the other tenants of
the Project. Landlord will not be responsible for enforcing Tenant’s parking
rights against any third parties.

 

(d)                                 Commencing
on the date that is six (6) months after the Commencement Date (the “Tenant
HVAC Maintenance Date”) Tenant will, at its own cost and expense, keep and
maintain all HVAC systems and equipment/fixtures serving or located in the
Premises in good condition, promptly making all necessary repairs. Tenant
shall. at its own cost and expense, enter into a regularly scheduled preventive
maintenance/service contract with a maintenance contractor for such servicing
of all HVAC systems and equipment serving the Premises. The maintenance
contractor and the contract must be approved by Landlord. The service contract
must include all services suggested/recommended by the equipment manufacturer
within the operation/maintenance manual or otherwise and must become effective
(and a copy of such contract delivered to Landlord) within thirty (30) days of
the Tenant HVAC Maintenance Date. If Tenant fails to perform its obligations in
this subsection (d), Landlord may obtain the service contract on behalf of
Tenant and charge Tenant, as Additional Rent, the cost of the contract and
Landlord’s costs and expenses in procuring the contract.

 

9

 

(e)                                  Tenant
agrees that no washing of any type (other than reasonable restroom or kitchen
washing) will take place in the Premises, including the truck apron and parking
areas.

 

(f)                                    If
Tenant fails to perform its repair, replacement or maintenance obligations as
set forth in this Section 7, Landlord may, without terminating this Lease,
enter upon the Premises, with force if necessary, without being liable for
prosecution of any claim for damages, without being deemed guilty of any manner
of trespass and without prejudice to any other rights or remedies, and perform
Tenant’s obligations under this Section 7, all at Tenant’s cost and
expense. Tenant agrees to reimburse Landlord on demand for any expenses which
Landlord may incur in effecting compliance with the Tenant’s obligations under
this Section 7; further, Tenant agrees that Landlord shall not be liable
for any damages resulting to Tenant from effecting compliance with Tenant’s
obligations under this Section 7, whether caused by the negligence of
Landlord, or otherwise.

 

(g)                                 Tenant
expressly acknowledges and agrees that Landlord has and does demise the
Premises to Tenant without any representation, warranty or covenant on the part
of Landlord as to the compliance of either the Premises or the Project or any
portion thereof with the provisions of the Americans with Disabilities Act of
1990, as the same may have been amended from time to time (the “Act”). Tenant
expressly acknowledges and agrees that it shall, at its own cost and expense,
cause the Premises and all appurtenances, including by way of illustration and
not by way of limitation, all access ways, entryways, toilets and bathroom
facilities, washing facilities, hallways, ramps, staircases and other items
subject to the Act to comply with the Act. Further, Tenant agrees that if its
use or occupancy of the Premises necessitates that Landlord make changes,
modifications or incur additional expenses with respect to the parking areas,
walkways or other common areas of the Project in order that the Project or such
common areas comply with the Act, all of such incurred costs, modifications or
alterations shall be done at Tenant’s sole cost and expense and Tenant shall
pay all of same to Landlord on demand as Additional Rent. Notwithstanding the
foregoing or any other statement in this Lease to the contrary, if in connection
with the completion of the Leasehold Improvements (defined in the Work Letter
attached to this Lease as Exhibit F) any governmental authority with
jurisdiction over the Project requires alterations to the Premises or the
common areas of the Project in order to comply with the Act (“Act
Improvements”), Landlord shall comply with such requirements and make such Act
Improvements at Landlord’s cost and expense.

 

8.                                      Alterations.  Tenant will
not make any alterations, additions or improvements to the Premises (including
but not limited to roof and wall penetrations) except in accordance with Exhibit F
attached hereto and with the prior written consent of Landlord, which consent
shall not be unreasonably withheld. Tenant may, without the consent of
Landlord, but at its own cost and expense, and in a good and workmanlike
manner, erect such shelves, bins, machinery and trade fixtures as it may deem
advisable, without altering the basic character of the Premises and without
overloading or damaging the building or buildings in which the Premises are
located or structural portions of the improvements, and in each case complying
with all applicable governmental laws, ordinances, regulations and other
requirements. All alterations, additions, improvements and partitions erected
by Tenant, including, without limitation, any access control, intrusion
detection, paging, closed circuit television, fire alarm or similar systems
(collectively, “Tenant Alterations”) will be and remain the property of Tenant
during the Term of this Lease and Tenant will, unless Landlord otherwise
elects, remove all Tenant Alterations and restore the

 

10

 

Premises and the Project
to their original condition by the date of termination of this Lease or upon
earlier vacating of the Premises; provided, however, that if Landlord so elects
prior to termination of this Lease or upon earlier vacating of the Premises,
such Tenant Alterations will become the property of Landlord as of the date of
termination of this Lease and will be surrendered to the Landlord with the
Premises. Not withstanding the foregoing, if Tenant, prior to making any Tenant
Alterations, provides Landlord with a written request, asking whether Landlord
will require that the specific Tenant Alterations described in such notice be
surrendered to the Landlord at the end of the Term, Landlord will, within
fifteen (15) days of receipt of such notice, provide Tenant with Landlord’s
written election as to whether Landlord will require such surrender, which
election shall govern the disposition of such Tenant Alterations at the end of
the Term. If Landlord fails to provide Tenant with Landlord’s written response
within such fifteen (15) day period, Landlord shall be deemed to have elected
that Tenant remove such Tenant Alterations at the end of the Term and restore
the Premises in accordance with this Section 8. All shelves, bins,
machinery and trade fixtures installed by Tenant shall be removed by Tenant
prior to the termination of this Lease, and must be removed by the date of
termination of this Lease or upon the earlier vacating of the Premises if
required by Landlord, upon any such removal Tenant will restore the Premises to
its original condition. All such removals and restoration will be accomplished
in a good and workmanlike manner so as not to damage the primary structure or
structural components of the Project.

 

Subject to Tenant’s compliance with the terms of this
Section 8, including, without limitation, the requirements governing
Tenant’s Work (as defined below), Landlord consents to the installation, by
Tenant, at Tenant’s sole cost and expense, of the following Tenant Alterations:
(a) security systems; and (b) card access control systems. Landlord’s
consent to Tenant’s installation of such systems does not imply any obligation
on the part of Landlord to supply security to the Premises or protect Tenant
from the acts of any third parties, which obligations Landlord has and does
expressly disclaim. Landlord shall have no liability to Tenant, or any of its
officers, directors, agents, employees, guests, or invitees arising from the
installation or use of such security systems or card access control systems.
Tenant shall indemnify, hold harmless, and defend (with counsel acceptable to
Landlord) Landlord from and against any and all claims arising from, or in any
way related to, such systems installed by Tenant. Any security systems
installed by Tenant pursuant to this Section 8 shall not prevent Landlord’s
access under Section 10 of this lease and Tenant shall provide to Landlord
all access codes or card keys necessary to assure such access.

 

In addition to the other terms and conditions of this Section 8,
and without limiting the applicability of any other provision of this Lease,
the following shall apply to all work performed in the Premises by Tenant,
including, without limitation, the performance of any Tenant Alterations (“Tenant’s
Work”): (a) Tenant will give Landlord at least thirty (30) days prior
written notice in its request for consent to make any Tenant Alterations or of
its intent to erect shelves, bins, machinery or trade fixtures in the Premises,
together with copies of drawings, plans, or specifications for any proposed
Tenant Alterations, sufficient to obtain a building permit, and ready for
Landlord’s consideration and final approval; (b) Tenant shall not commence
any Tenant’s Work until Landlord has approved in writing Tenant’s drawings,
plans, or specifications and shall reimburse Landlord for any costs incurred by
Landlord in connection with its review of such drawings, plans, and
specifications; (c) Tenant shall secure all necessary licenses,
inspections, and permits to be used in performing Tenant’s Work; (d) Tenant’s
finished

 

11

 

work shall be subject to
Landlord’s approval and acceptance; (e) all Tenant’s Work and Tenant
Alterations shall be at Tenant’s sole cost and expense and shall not damage the
building in which the Premises are located or any part thereof; (f) any
roof penetration shall be performed by Landlord’s roofer or, at Landlord’s
option, by a bonded roofer approved in advance by Landlord; (g) all Tenant’s
Work shall be performed in accordance with applicable governmental laws, rules,
and regulations; and (h) Landlord shall have the right to approve any
contractor(s) by whom the Tenant’s Work is to be performed

 

No approval by Landlord of any drawings, plans, or
specifications that are prepared in conjunction with the construction of any
Tenant Alterations in the Premises will constitute a representation or warranty
by Landlord as to the adequacy or sufficiency of such drawings, plans or
specifications, or the improvements to which they relate, far any use purpose
or condition, including conformity to any applicable codes or laws, but such
approval will merely be the consent of Landlord to the construction or
installation of Tenant Alterations in the Premises, according to said drawings,
plans, or specifications. Landlord shall be entitled to post notices on and
about the Premises with respect to Landlord’s non-liability for the payment of
the Tenant’s Work as provided in the Colorado mechanic’s lien statutes and
Tenant shall not permit such notices to be defaced or removed. If Landlord
approves Tenant’s proposed contractor(s), prior to the commencement of any
Tenant Work, Tenant shall deliver to Landlord certificates issued by insurance
companies qualified to do business in the State of Colorado evidencing that
worker’s compensation, public liability insurance and property damage
insurance, all in amounts and with companies and on forms reasonably
satisfactory to Landlord, are in force and maintained by all of such
contractor(s). Among other things, all such policies shall name Landlord as an
additional insured and shall provide that the same may not be canceled or
modified without thirty (30) days prior written notice to Landlord.

 

9.                                      Signs.  At its cost
Landlord will: (a) remove any existing signage at the Project referring to
any prior Tenant of the Premises; and (b) install Project- standard
directional signs indicating the location of the Premises. Tenant, at its sole
cost and expense, upon the prior written approval of Landlord and subject to
any applicable governmental laws, ordinances, regulations and other requirements,
will have the right to install a single sign upon the Premises. Tenant will
remove such sign upon the termination of this Lease. Such installation and
removal will be made in such manner as to avoid injury or defacement of the
Premises and the Project, and Tenant will repair any injury or defacement,
including without limitation discoloration, caused by such installation or
removal.

 

10.                               Landlord’s Right of Access; Inspection.  Landlord
and Landlord’s agents and representatives will have the right to enter and
inspect the Premises at any reasonable time during business hours, for the
purpose of ascertaining the condition of the Premises or in order to make such
repairs as may be required or permitted to be made by Landlord under the terms
of this Lease. During the six (6) month period that is prior to the end of
the Term of this Lease, Landlord and Landlord’s agents and representatives will
have the right to enter the Premises at any reasonable time during business
hours for the purpose of showing the Premises and will have the right to erect
on the Premises a suitable sign indicating that the Premises are available for
lease. Tenant will give written notice to Landlord at least thirty (30) days
prior to vacating the Premises and will arrange to meet with Landlord for a
joint inspection of the Premises prior to vacating the Premises. In the event
Tenant fails to give such notice or arrange such joint

 

12

 

inspection, Landlord’s inspection
at or after Tenant’s vacating the Premises will be conclusive for purposes of
determining Tenant’s responsibility for repairs and restoration.

 

11.                               Utilities.  Landlord
agrees to provide at its cost water, electricity and telephone service
connections into the Premises, but Tenant will pay for all water, gas, heat,
light, power, telephone, sewer, sprinkler charges and other utilities and
services used on or from the Premises, together with any taxes, penalties or
surcharges and any maintenance charges for utilities. Tenant will furnish all
electric light bulbs and tubes. If such services are separately metered, Tenant
will pay all utility charges directly to the provider of the applicable utility
services. If any such services are not separately metered to Tenant, Tenant will
pay its Pro Rata Share of all such charges as part of the Operating Expenses.
Landlord will not be liable for any interruption or failure of utility services
to the Premises, unless such interruption or failure is caused by the gross
negligence of Landlord.

 

12.                               Assignment and Subletting.  Tenant
will not assign, sublet, transfer or encumber this Lease, or any interest in
this Lease or the Premises, by operation of law or otherwise, without the prior
written consent of Landlord (which consent shall not be unreasonably withheld).
Any attempted assignment, subletting, transfer or encumbrance by Tenant in
violation of the terms and covenants of this Section 12 will be a default
hereunder and void ab initio. Fifty percent (50%) of all cash or other proceeds
of any assignment, proceeds in excess of the Rent under this Lease in the case
of a subletting, and of all cash or other proceeds of any other transfer of
Tenant’s interest in this Lease or the Premises will be paid to Landlord,
whether such assignment, subletting or other transfer is consented to by
Landlord or not. Tenant assigns all rights it might have or ever acquire in
such fifty percent (50%) of any cash or proceeds to Landlord. These covenants
will run with the land and the Premises and bind Tenant and Tenant’s heirs,
executors, administrators, personal representatives, representatives in any
bankruptcy proceeding, successors and assigns. No assignment, subletting or
other transfer, whether consented to by Landlord or not, shall relieve Tenant
of its primary liability under and with respect to all covenants contained in
this Lease. Consent of Landlord to any assignment, subletting or other transfer
of this Lease or the Premises shall not relieve Tenant from seeking consent to
any subsequent assignment, subletting or transfer. No consent to any such
assignment, subletting, transfer or encumbrance of this Lease or any interest
in this Lease or the Premises shall constitute a waiver of or with respect to
any of Tenant’s obligations or covenants hereunder. Upon the occurrence of a
default or an event of default as defined or described in this Lease, if the
Premises or any part of the Premises are then assigned or sublet, Landlord, in
addition to any other remedies provided in this Lease, or by law, or in equity,
may at its option collect directly from such assignee or subtenant all rents
becoming due to Tenant under such assignment or sublease and apply such rent
against any sums due to Landlord from Tenant and no such collection will be
construed to constitute a notation, waiver or a release of Tenant from the
further performance of Tenant’s obligations under this Lease.

 

Notwithstanding the foregoing, Tenant may, without the
Landlord’s consent, assign this Lease to any parent, affiliated or subsidiary
corporation, provided such assignment does not relieve the original Tenant of
any liability hereunder, and may also assign this Lease without Landlord’s
consent in connection with the merger or consolidation of Tenant with or into
any other corporation or entity, or in connection with the sale or transfer of
a majority of the assets and liabilities of Tenant, so long as, with respect to
any of the foregoing (i) the net worth of the

 

13

 

proposed assignee at the
time of transfer is equal to or greater than the net worth of Tenant as of the
date of execution of this lease and the proposed assignee is otherwise
financially able to meet the obligations of Tenant under this Lease, (ii) as
of the effective date of such assignment, the assignee is engaged in a business
customarily acceptable for a tenant in a building such as the Building in
metropolitan Denver, Colorado, (iii) the assignee assumes and agrees in
writing to fully perform and observe all of the obligations of Tenant under
this Lease, (iv) at the time of the assignment, this Lease is in full
force and effect and there is no event of default under this Lease on the part
of Tenant, (v) the assignee’s proposed use of the Premises is not in
violation of the approved use provision of this Lease, and (vi) the
transaction giving rise to the assignment was not entered into as a subterfuge
to avoid obligations and restrictions under this Lease. At least thirty (30)
days prior to the effective date of any assignment under this paragraph, Tenant
agrees to furnish Landlord with notice of such assignment, fully executed
copies of the instruments intended to effect such assignment, and with
documentation establishing Tenant’s satisfaction of the requirements set forth
above.

 

Notwithstanding anything contained in this Lease to
the contrary, Landlord shall not be obligated to entertain or consider any
request by Tenant to consent to any proposed assignment of this Lease or sublet
of all or any part of the premises unless each request by Tenant is accompanied
by a non-refundable fee, payable to Landlord, in the amount of One Thousand
Dollars ($1,000.00) to cover Landlord’s administrative, legal, and other costs
and expenses incurred in processing each of Tenant’s requests. Neither Tenant’s
payment, nor Landlord’s acceptance of the foregoing fee shall be construed to
impose any obligation whatsoever upon Landlord to consent to Tenant’s request. In
addition, should any such request by Tenant seek any change or modification to
the terms of this Lease, and Landlord agrees to such additional or modified
terms and conditions (which agreement may or may not be given in Landlord’s
sole and absolute discretion) Tenant agrees to pay Landlord’s reasonable
attorneys’ fees, costs and expenses with respect to the negotiation and
preparation of any resulting amendment to this Lease, which amounts shall be
Additional Rent under this Lease.

 

13.                               Insurance.

 

(a)                                  Landlord’s
Insurance.  Landlord agrees to maintain (i) property damage
insurance covering the Project and the Project equipment and common area
furnishings and (ii) public liability and commercial general liability
insurance in such coverage amounts as Landlord determines from time to time in
its reasonable discretion. Landlord may carry such other additional insurance
coverage for the Project as Landlord or Landlord’s mortgagee deems appropriate
including coverage for loss of rents. Tenant will reimburse Landlord, as an
Operating Expense, for the costs of all such insurance. All such insurance shall
be for the sole benefit of Landlord and its designated additional insureds.

 

(b)                                 Waiver
of Subrogation.  Landlord and Tenant waive, disclaim and release
each other from any and all rights of recovery, claims, actions or causes of
action, against each other, their agents, officers and employees, for or on
account of any loss or damage that may occur to the Premises, Project, or
personal property within the Project, by reason of fire or the elements
regardless of cause or origin, including negligence of Landlord or Tenant or
their agents, officers and employees, but only to the extent of the insurance
proceeds actually paid under the policies of insurance covering such property.
Because this subsection is intended to

 

14

 

and will preclude the
assignment of any claim mentioned in it by way of subrogation (or otherwise) to
an insurance carrier (or any other person), each party to this Lease agrees
immediately to give to each insurance company which has issued to it policies
of fire and extended coverage insurance, written notice of the terms of the
mutual waivers contained in this subsection, and to have the insurance policies
properly endorsed, if necessary (and only to the extent available at reasonable
cost), to prevent the invalidation of the insurance coverages by reason of the
mutual waivers contained in this subsection. To the extent such endorsement(s) are
unavailable or cannot be obtained at reasonable cost, such requirement shall be
deemed waived; provided however, that the party claiming such unavailability or
excessive cost shall give immediate written notice thereof to the other party.

 

(c)                                  Waiver
of Liability.  Landlord will not be liable to Tenant or Tenant’s
employees, agents, patrons or visitors, or to any other person whomsoever, for
any injury (including death) to person or damage to property on or about the
Project, resulting from or caused in part or whole by the negligence or
misconduct of Tenant, its agents, servants or employees, or of any other person
entering upon the Premises or Project, or caused by the Project becoming out of
repair, or caused by leakage of gas, oil, water or steam or by electricity
emanating from the Premises or Project, the criminal activities of any persons,
or due to any cause whatsoever. Tenant covenants and agrees that it will at all
times indemnify and hold safe and harmless the Project, the Landlord, Landlord’s
officers, directors, partners, agents, attorneys and employees from any losses,
liabilities, claims, suits, costs, expenses, including without limitation
reasonable attorneys’ fees, and damages, arising out of any such damage or
injury (except injury to persons or damage to property the sole cause of which
is the negligence or intentional misconduct of Landlord or the failure of
Landlord to repair any part of the Premises which Landlord is obligated to
repair and maintain under this Lease within a reasonable time after the receipt
of written notice from Tenant of the need for repairs).

 

(d)                                 Tenant’s
Insurance.  Tenant shall procure and maintain throughout the term
of this Lease, at its sole cost and expense, all of the following insurance
coverages:

 

(1)                                  Commercial
General Liability (“CGL”) Insurance providing coverage for bodily injury
(including death), property damage and products liability insurance (where such
exposure exists). Tenant’s CGL policy shall contain a broad form contractual
liability endorsement, and shall insure both Landlord and Tenant against all
claims, demands or actions arising out of or in connection with: (i) the
Premises; (ii) the condition of the Premises; (iii) Tenant’s
operations in and maintenance and use of the Premises; and (iv) Tenant’s
liability for injury to persons or damage to property assumed under this Lease.
Such insurance shall have a combined single limit of not less than Two Million
Dollars ($2,000,000) in the aggregate, and One Million Dollars ($1,000,000) per
occurrence, with an additional umbrella policy of One Million Dollars
($1,000,000), or such greater amount as Landlord may from time to time require.
If Tenant uses vehicles, owned and non-owned, in any way to carry out business
on or about the Project, Tenant shall also maintain Motor Vehicle Liability
Insurance; such insurance shall have a combined single limit of not less than
One Million Dollars ($1,000,000) for bodily injury and property damage.

 

(2)                                  Property
damage insurance covering Tenant’s personal property, fixtures, improvements,
wall coverings, floor coverings, window coverings, signs, alterations,

 

15

 

furniture, furnishings,
equipment, lighting, ceilings, heating, ventilation and air conditioning
equipment and interior plumbing against loss or damage by fire, flood,
windstorms, hail, explosion, riot, damage from aircraft and vehicles, smoke
damage, vandalism and malicious mischief and such other risks as are from time
to time covered under a “Causes of Loss -Special Form” policy and “extended
coverage” endorsements, containing the waiver of subrogation required in
subsection (b) of this Section 13, and in an amount equal to the
greater of the full replacement value or the amount required by the holder of
any mortgage from time to time placed upon the Project or a portion of the
Project containing the Premises, with business interruption insurance covering
the Premises. Replacement value is understood to mean the cost to replace
without deduction for depreciation.

 

(3)                                  Colorado
Worker’s Compensation Insurance in statutorily mandated limits.

 

(4)                                  Employer’s
Liability Insurance with limits of not less than One Hundred Thousand Dollars
($100,000) for bodily injury per accident and each disease, per employee, and a
total combined limit for bodily injury in amounts not less than One Hundred
Thousand ($100,000) per accident and Five Hundred Thousand ($500,000) per each
disease, or such greater amount as Landlord may from time to time require.

 

(5)                                  Plate
Glass Insurance.

 

It is expressly understood and agreed that the
foregoing minimum limits of insurance coverage shall not limit the liability of
Tenant for its acts or omissions as provided in this lease. All of the
foregoing insurance policies (with the exception of Worker’s Compensation
Insurance to the extent not available under statutory law) shall name Landlord,
any mortgagee, the managing agent for the Project, and such other parties as
Landlord shall from time to time designate, as additional insureds as their
respective interests may appear, and shall provide that any loss shall be
payable to Landlord and such other additional insured parties as their
respective interests may appear. All such policies shall be procured by Tenant
from responsible insurance companies licensed to do business in Colorado and
reasonably satisfactory to Landlord. All such policies shall be written as
primary policies with deductibles not to exceed One Thousand Dollars ($1,000);
provided, however, that the deductible for the Plate Glass Insurance shall not
exceed Two Hundred Fifty Dollars ($250). Any other policies, including
Landlord’s policy, will serve as excess coverage. Tenant shall deliver
certificates evidencing that the required insurance coverages and endorsements,
including waiver of subrogation are in full force and effect to Landlord, prior
to the Commencement Date, or, in the case of renewals thereto, fifteen (15)
days prior to the expiration of the prior insurance policy, together with
evidence that (x) such policies are fully paid for, and (y) no
cancellation, material change or non-renewal thereof shall be effective except
upon thirty (30) days’ prior written notice by registered mail from the insurer
to Landlord. Whenever, in Landlord’s reasonable judgment, good business
practice or change in conditions indicate a need for additional or different
types of insurance, Tenant shall, within fifteen (15) days of receipt of
Landlord’s request therefor, obtain the insurance at its own expense. If Tenant
should fail to comply with the foregoing requirements relating to insurance,
Landlord may obtain such insurance and Tenant shall pay to Landlord on demand
as Additional Rent hereunder the premium cost thereof plus interest at the
maximum contractual rate (but in no event to exceed 1-1/2% per month) from the
date of payment by Landlord until repaid by Tenant.

 

16

 

In addition to the
foregoing, Tenant shall obtain certificates of insurance evidencing Commercial
General Liability Insurance, including Completed Operations, Motor Vehicle
Liability Insurance, and Worker’s Compensation Insurance and Employer’s
Liability Insurance in the amounts required above from any contractor or
subcontractor engaged by Tenant for alterations, repairs or maintenance during
the Lease Term.

 

14.                               Damage
and Destruction.

 

(a)                                  If
the Project or Premises are damaged or destroyed by fire, tornado or other
casualty, Tenant will give immediate written notice of such damage or
destruction to Landlord.

 

(b)                                 If
the Premises are totally destroyed by fire, tornado or other casualty, or if
they are so damaged that rebuilding or repairs cannot in Landlord’s estimation
be completed within one hundred eighty (180) days after the date upon which
Landlord is notified by Tenant or otherwise obtains actual knowledge of such
damage, this Lease will terminate and the unaccrued Rent (other than in the
event such damage or destruction was caused by Tenant or its employees or
agents) will be abated during the unexpired portion of this Lease, effective
upon the date of the occurrence of such damage.

 

(c)                                  If
the Premises are damaged by any peril covered by the insurance to be provided
by Landlord under Section 13, such insurance proceeds are made available
to Landlord and such rebuilding or repairs can in Landlord’s estimation be
completed within one hundred eighty (180) days after the date upon which
Landlord is notified by Tenant or otherwise obtains actual knowledge of such
damage, this Lease will not terminate, and Landlord will proceed with
reasonable diligence to rebuild and repair the Premises to substantially the
condition in which it existed prior to such damage, except that Landlord will
not be required to rebuild, repair or replace any part of the partitions,
fixtures, additions, other improvements or personal property which may have
been placed in, on or about the Premises by Tenant. If the Premises are
untenantable in whole or in part following such damage, the Rent payable during
the period in which they are untenantable will be reduced to such extent as may
be fair and reasonable under all of the circumstances.

 

(d)                                 Landlord
shall notify Tenant within forty-five (45) days after the date upon which
Landlord is notified by Tenant or otherwise obtains actual knowledge of damage
pursuant to this Section 14, if Landlord estimates that Landlord will be
unable to repair and restore the Premises within said one hundred eighty (180)
day period. Such notice shall set forth the approximate length of time Landlord
estimates will be required to complete such repairs and restoration, and,
notwithstanding anything to the contrary contained herein: (i) if Landlord
estimates that it cannot complete such repairs and rebuilding within said one
hundred eighty (180) day period, then Tenant may, by written notice to Landlord
terminate this Lease, provided such notice is given to Landlord within fifteen (15)
days after Landlord notifies Tenant of the estimated time for completion of
such repairs and rebuilding; and (ii) if Landlord, irrespective the time
that Landlord estimated was required to make such repairs and rebuilding, fails
to complete such repairs and rebuilding within one hundred eighty (180) days
after the date upon which Landlord is notified by Tenant or otherwise obtains
actual knowledge of such damage, Tenant may at its option terminate this Lease
by delivering written notice of termination to

 

17

 

Landlord. Tenant may not,
in any event, terminate this Lease as hereinabove stated if the damage to the
Premises or the Building is in whole or in part the result of the act,
omission, fault or negligence of Tenant, its agents, contractors, employees,
licensees or invitees Tenant’s termination rights wider this
Section 14(d) shall be Tenant’s exclusive remedy, whereupon all
rights and obligations of Landlord and Tenant under this Lease will cease and terminate.

 

(e)                                  In
the event the holder of any indebtedness secured by a mortgage or deed of trust
covering the Premises requires that the insurance proceeds, if any, be applied
to such indebtedness, then Landlord will have the right to terminate this Lease
by delivering written notice of termination to Tenant within fifteen (15) days
after such requirement is made by any such holder, whereupon all rights and
obligations of Landlord and Tenant wider this Lease will cease and terminate.

 

15.                               Condemnation.

 

(a)                                  If
the whole of the Premises or so much thereof as to render the balance unusable
by Tenant for the proper conduct of its business shall be taken under power of
eminent domain or transferred under threat thereof, then this Lease, at the
option of either Landlord or Tenant exercised by either party giving written
notice to the other of such election within thirty (30) days after such
conveyance or taking of possession, whichever is earlier, shall forthwith cease
and terminate and the Rent shall be duly apportioned as of the date of such
taking or conveyance. No award for any partial or entire taking shall be
apportioned between Landlord and Tenant; Tenant hereby assigns to Landlord any
award which may be made in such taking or condemnation, together with any and
all rights of Tenant now or hereafter arising in or to the same or any part
thereof. Notwithstanding the foregoing, Tenant shall be entitled to seek,
directly from the condemning authority, an award for its removable trade
fixtures, equipment, personal property and relocation expenses, if any, to the
extent Landlord’s award is not diminished thereby. In the event of a partial
taking or conveyance which does not result in a termination of this Lease,
Monthly Base Rent shall be reduced in proportion to the reduction in the size
of the Premises so taken or conveyed and this Lease shall be modified
accordingly. Promptly after obtaining knowledge thereof, Landlord or Tenant, as
the case may be, shall notify the other of any pending or threatened condemnation
or taking affecting the Premises.

 

(b)                                 If
all or any portion of the Premises shall be condemned or taken for governmental
occupancy for a limited period, this Lease shall not terminate and Landlord
shall be entitled to receive the entire amount of any such award or payment
thereof as damages, rent or otherwise. Tenant hereby assigns to Landlord any
award which may be made in such temporary taking, together with any and all
rights of Tenant now or hereafter arising in or to the same or any part
thereof. Tenant shall, however, be entitled to an abatement of Monthly Base
Rent in proportion to the reduction in size of the Premises so taken for such
limited period.

 

16.                               Holding
Over.  Tenant will, at the termination of this Lease by lapse
of time or otherwise, surrender immediate possession of the Premises to Landlord.
If Landlord agrees in writing that Tenant may hold over after the expiration or
termination of this Lease, unless Landlord and Tenant otherwise agree in
writing on the terms of such holding over, the hold over tenancy shall be
deemed to be month-to-month and will be subject to termination by Landlord or
by Tenant at any time upon not less than thirty (30) days’ advance written
notice, and all of the

 

18

 

other terms and
provisions of this Lease will be applicable during such holdover period, except
that Tenant will pay Landlord from time to time upon demand, in addition to the
Additional Rent for the period of any hold over, an amount equal to double the
Monthly Base Rent in effect on the termination date. No holding over by Tenant,
whether with or without the consent of Landlord, will operate to extend this
Lease except as otherwise expressly provided in a writing signed by Landlord.
The preceding provisions of this Section 16 are not a consent for Tenant
to hold over. In the event Tenant holds over without the written agreement of
Landlord, the holdover tenancy shall be deemed to be a tenancy of sufferance,
terminable upon five (5) days prior written notice by Landlord and
otherwise subject to all of the terms and conditions of this Lease, except the
Monthly Base Rent during any such tenancy at sufferance shall be equal to three
(3) times the Monthly Base Rent in effect on the termination date.

 

17.                               Quiet
Enjoyment.  Subject to the provisions of this Lease, Landlord
covenants that Tenant on paying the Rent and performing the covenants of this
Lease on its part to be performed shall and may peacefully and quietly have,
hold and enjoy the Premises for the Term of this Lease. Landlord shall not be
responsible for the acts or omissions of any other tenant or third party which
may interfere with Tenant’s use and enjoyment of the Premises. In the event of
any transfer or transfers of Landlord’s interest in the Premises, the Project
or in the real property of which the Premises are a part, other than a transfer
for security purposes only, the transferor shall automatically be relieved of
any and all obligations and liabilities on the part of Landlord accruing from
and after the date of such transfer.

 

18.                               Events
of Default.  The following events shall be deemed to be
events of default by Tenant under this Lease:

 

(a)                                  Tenant
shall fail to pay when due any installment of Monthly Base Rent, Additional
Rent or any other amounts payable hereunder;

 

(b)                                 This
Lease or the estate of Tenant hereunder shall be transferred to or shall pass
to any other person or party in violation of the provisions of this Lease;

 

(c)                                  This
Lease or the Premises or any part thereof shall be subject to attachment, levy
or other process of law directed against Tenant and such attachment or levy
shall not be discharged within fifteen (15) days after the levy or attachment
thereof;

 

(d)                                 Tenant
or any Guarantor hereof shall file a Petition in Bankruptcy or insolvency or
for reorganization or rearrangement of debt under the Bankruptcy Laws of the
United States or any insolvency act of any state, or shall voluntarily take
advantage of any such law;

 

(e)                                  Involuntary
proceedings under any such bankruptcy or insolvency law shall be instituted
against Tenant or against any Guarantor hereof, or a receiver or trustee shall
be appointed for all or substantially all of the property of Tenant or any such
Guarantor and such proceedings shall not be dismissed or vacated within thirty
(30) days after such institution or appointment;

 

(f)                                    Tenant
shall abandon or vacate the Premises for ten (10) consecutive days;

 

19

 

(g)                                 Tenant
shall fail to perform any of the other agreements, terms, covenants or
conditions hereof on Tenant’s part to be performed, and such nonperformance
shall continue for a period of thirty (30) days after notice thereof by
Landlord to Tenant (which notice, however, shall only be given once during any calendar
year with respect to any one term covenant, or condition, after which an event
of default shall occur immediately upon Tenant’s breach of the same term,
covenant, or condition); provided, however, that if Tenant cannot reasonably
cure such nonperformance within thirty (30) days, Tenant shall not be in
default if it commences cure within said thirty (30) day period and diligently
pursues the same to completion, with completion to occur in any event within
sixty (60) days after such notice;

 

(h)                                 Tenant
shall fail to obtain a release of any mechanic’s lien as required herein; or

 

(i)                                     All
or any part of the personal property of Tenant is seized, subjected to levy or
attachment, or similarly repossessed or removed from the Premises.

 

19.                               Remedies.

 

(a)                                  Upon
the occurrence of any event of default, Landlord will have, at its election,
the option to pursue any one or more of the following remedies:

 

(1)                                  To
give Tenant written notice of Landlord’s intention to terminate this Lease on
the date such notice is given or on any later date specified therein,
whereupon, on the date specified in such notice, Tenant’s right to possession
of the Premises shall cease arid this Lease shall thereupon be terminated;
provided however, all of Tenant’s obligations, including but not limited to,
the amount of Monthly Base Rent and other obligations reserved in this Lease
for the balance of the term hereof, shall immediately be accelerated and due
and payable.

 

(2)                                  To
re-enter and take possession of the Premises or any part thereof and repossess
the same as Landlord’s former estate and expel Tenant and those claiming
through or under Tenant, and remove the effects of both or either, using such
force for such purposes as may be reasonably necessary, without being liable
for prosecution thereof, without being deemed guilty of any manner of trespass
and without prejudice to any remedies for arrears of rent or preceding breach
of covenants or conditions. Should Landlord elect to re-enter the Premises as
provided in this subsection 19(a)(2), or should Landlord take possession
pursuant to legal proceedings or pursuant to any notice provided for by law,
Landlord may, from time to time, without terminating this Lease, relet the
Premises or any part thereof in Landlord’s or Tenant’s name, but for the
account of Tenant, for such term or terms (which may be greater or less than
the period which would otherwise have constituted the balance of the Term of
this Lease) and on such conditions and upon such other terms (which may include
concessions of free rent and alteration and repair of the Premises) as
Landlord, in its discretion, may determine, and Landlord may collect and
receive the rents therefor. Landlord shall in no way be responsible or liable
for any failure to relet the Premises or any part thereof or for any failure to
collect any rent due upon such reletting. No such re-entry or taking possession
of the Premises by Landlord shall be construed as an election on Landlord’s
part to terminate this Lease unless a written notice of such intention be given
to Tenant. No notice from Landlord hereunder or wider a forcible entry and
detainer statute or similar law shall constitute an election by Landlord to
terminate this Lease

 

20

 

unless such notice
specifically so states. Landlord reserves the right following any such re-entry
or reletting, to exercise its right to terminate this Lease by giving Tenant
such written notice, in which event, this lease will terminate as specified in
said notice.

 

(b)                                 in
the event that Landlord does not elect to terminate this Lease as permitted in
subsection 19(a)(1), but on the contrary, elects to take possession as provided
in subsection 19(a)(2), Tenant shall pay to Landlord: (x) the Rent and
other sums as herein provided, which would be payable hereunder if such
repossession had not occurred, less (y) the net proceeds, if any, of any
reletting of the Premises after deducting all of Landlord’s expenses in
connection with such reletting, including but without limitation, all
repossession costs, brokerage commissions, legal expenses, attorneys’ fees,
expenses of employees, alterations and repair costs and expenses of preparation
for such reletting. If, in connection with any reletting, the new lease term
extends beyond the existing term, or the premises covered thereby include other
premises not part of the Premises, a fair apportionment of the rent received
from such reletting and the expenses incurred in connection therewith as
provided aforesaid will be made in determining the net proceeds from such
reletting. Tenant shall pay such Rent and other sums to Landlord monthly on the
days on which the Rent would have been payable hereunder if possession had not
been retaken.

 

(c)                                  In
the event this Lease is terminated, Landlord shall be entitled to recover
forthwith against Tenant as damages for loss of the bargain and not as a
penalty, an aggregate sum which, at the time of such termination of this Lease,
represents the excess, if any, of the aggregate of the Rent and all other sums
payable by Tenant hereunder that would have accrued for the balance of the term
over the aggregate rental value of the Premises (such rental value to be
computed on the basis of a tenant paying not only a rent to Landlord for the
use and occupation of the Premises, but also such other charges as are required
to be paid by Tenant under the terms of this Lease) for the balance of such
term, both discounted to present worth at the rate of ten percent (10%) per
annum. Alternatively, at Landlord’s option, Tenant shall remain liable to
Landlord for damages in an amount equal to the Rent and other sums arising
under the Lease for the balance of the term had the Lease not been terminated,
less the net proceeds, if any, from any subsequent reletting, after deducting
all expenses associated therewith and as enumerated above. Landlord shall be
entitled to receipt of such amounts from Tenant monthly on the days on which
such sums would have otherwise been payable.

 

(d)                                 Suit
or suits for the recovery of the amounts and damages set forth above may be
brought by Landlord, from time to time, at Landlord’s election and nothing
herein shall be deemed to require Landlord to await the date whereon this Lease
or the term hereof would have expired had there been no such default by Tenant
or no such termination, as the case may be.

 

(e)                                  After
an event of default by Tenant, Landlord may sue for or otherwise collect all
rents, issues and profits payable under all subleases on the Premises,
including those past due and unpaid.

 

(f)                                    After
an event of default by Tenant, Landlord may without terminating this Lease,
enter upon the Premises, with force if necessary, without being liable for
prosecution of any claim for damages, without being deemed guilty of any manner
of trespass and without

 

21

 

prejudice to any other
remedies, and do whatever Tenant is obligated to do under the terms of this
Lease. Tenant agrees to reimburse Landlord on demand for any expenses which
Landlord may incur in effecting compliance with the Tenant’s obligations under
this Lease; further, Tenant agrees that Landlord shall not be liable for any
damages resulting to Tenant from effecting compliance with Tenant’s obligations
under this subsection caused by the negligence of Landlord or otherwise.

 

(g)                                 No
failure by Landlord to insist upon the strict performance of any agreement,
term, covenant or condition hereof or to exercise any right or remedy
consequent upon a breach thereof, and no acceptance of full or partial rent
during the continuance of any such breach, shall constitute a waiver of any
such breach of such agreement, term, covenant or condition. No agreement, term,
covenant or condition hereof to be performed or complied with by Tenant, and no
breach thereof, shall be waived, altered or modified except by written
instrument executed by Landlord. No waiver of any one breach shall affect or
alter this Lease, but each and every agreement, term, covenant and condition
hereof shall continue in full force and effect with respect to any other then
existing or subsequent breach thereof. Notwithstanding any unilateral
termination of this Lease, this Lease shall continue in force and effect as to
any provisions hereof which require observance or performance of Landlord or
Tenant subsequent to termination.

 

(h)                                 Nothing
contained in this Section 19 shall limit or prejudice the right of
Landlord to prove and obtain as liquidated damages in any bankruptcy,
insolvency, receivership, reorganization or dissolution proceeding, an amount
equal to the maximum allowed by any statute or rule of law governing such
proceeding and in effect at the time when such damages are to be proved,
whether or not such amount be greater, equal to or less than the amounts
recoverable, either as damages or rent, referred to in any of the preceding
provisions of this Section 19.

 

(i)                                     Any
Rent or other amounts owing to Landlord hereunder which are not paid within
five (5) days of the date they are due, shall thereafter bear interest
from the due date at the rate of eighteen percent (18%) per annum (“Interest
Rate”) until paid. Similarly, any amounts paid by Landlord to cure any default
of Tenant or to perform any obligation of Tenant, shall, if not repaid by the
Tenant within five (5) days of demand by Landlord, thereafter bear
interest from the date paid by Landlord at the Interest Rate until paid. In
addition to the foregoing, Tenant shall pay to Landlord whenever any Monthly
Base Rent, Additional Rent or any other sums due hereunder remain unpaid more
than five (5) days after the due date thereof, a late charge equal to ten
percent (10%) of the amount due. Further, in the event of default by Tenant, in
addition to all other rights and remedies, Landlord shall be entitled to
receive from Tenant all sums, the payment of which may previously have been
waived or abated by Landlord, or which may have been paid by Landlord pursuant
to any agreement to grant Tenant a rental abatement or other monetary
inducement or concession, including but not limited to any tenant finish
allowance or moving allowance, together with interest thereon from the date or
dates such amounts were paid by Landlord or would have been due from Tenant but
for the abatement, monetary inducement or concession, at the Interest Rate,
until paid; it being understood and agreed that such inducement, concession or
abatement was made on the condition and basis that Tenant fully perform all
obligations and covenants under the Lease for the entire term.

 

22

 

(j)                                     Each
right and remedy provided for in this Lease shall be cumulative and shall be in
addition to every other right or remedy provided for in this Lease, now or
hereafter existing at law or in equity or by statute or otherwise, including,
but not limited to, suits for injunctive or declaratory relief and specific
performance. The exercise or commencement of the exercise by Landlord of any
one or more of the rights or remedies provided for in this Lease now or
hereafter existing at law or in equity or by statute or otherwise shall not
preclude the simultaneous or subsequent exercise by Landlord of any or all
other rights or remedies provided for in this Lease, or now or hereafter
existing at law or in equity or by statute or otherwise. All costs incurred by
Landlord in connection with collecting any amounts and damages owing by Tenant
pursuant to the provisions of this Lease or to enforce any provision of this
Lease, including by way of example, but not limitation, reasonable attorneys’
fees and court costs, shall also be recoverable by Landlord from Tenant.

 

(k)                                  In
the event of any default by Landlord, Tenant’s exclusive remedy will be an
action for damages (Tenant waives the benefit of any laws granting it a lien
upon the property of Landlord or upon rent due Landlord); provided that, prior
to commencing any such action Tenant will give Landlord written notice
specifying such default with particularity, and, except as otherwise expressly
set forth herein, Landlord will have thirty (30) days in which to cure any such
default; provided, however, that if Landlord cannot reasonably cure such default
within said thirty (30) day period, Landlord shall not be in default if it
commences cure within said thirty (30) day period and diligently pursues the
same to completion. Unless and until Landlord fails to so cure any default
after such notice, Tenant will not have any remedy or cause of action by reason
of such default or alleged default. All obligations of Landlord under this
Lease will be construed as independent covenants, not conditions; and all such
obligations will be binding upon Landlord only during the period of its
ownership of the Premises. The term “Landlord” means only the owner, for the
time being of the Premises, and in the event of the transfer by such owner of
its interest in the Premises, such owner will be released and discharged from
all covenants and obligations of the Landlord accruing after such transfer, but
such covenants and obligations will be binding during the Lease term upon each
new owner for the duration of such owner’s ownership. Landlord will not have
any personal liability under this Lease; Tenant agrees to look solely to the
equity or interest then owned by Landlord in the Premises. In no event shall
any deficiency judgment or any money judgment of any kind be sought or obtained
against Landlord or any successor landlord.

 

(l)                                     Landlord
and Tenant hereby waive trial by jury in any action, proceeding or counterclaim
brought by either party against the other upon any matters whatsoever arising
out of or in any way connected with this Lease, Tenant’s use or occupancy of
the Premises, or any claim of injury or damage.

 

20.                               Bankruptcy
or Insolvency; Assumption; Adequate Protection.  The
following shall apply in the event of the bankruptcy or insolvency of Tenant:

 

(a)                                  Chapter
7 Bankruptcy.  If a petition is filed by, or an order for relief
is entered against Tenant under Chapter 7 of the Bankruptcy Code and the
trustee of Tenant elects to assume this Lease for the purpose of assigning it,
the election or assignment, or both, may be made only if all of the terms and
conditions of subsections (b) and (d) below are satisfied. If the
trustee fails to elect to assume this Lease for the purpose of assigning it
within sixty (60) days

 

23

 

after his appointment,
this Lease will be deemed to have been rejected. To be effective, an election
to assume this Lease must be in writing and addressed to Landlord and, in
Landlord’s business judgment, all of the conditions hereinafter stated, which
Landlord and Tenant acknowledge to be commercially reasonable, must have been
satisfied. Landlord shall then immediately be entitled to possession of the
Premises without further obligation to Tenant or the trustee, and this Lease
will be canceled. Landlord’s right to be compensated for damages in the
bankruptcy proceeding, however, shall survive.

 

(b)                                 Chapter
11 or Chapter 13 Bankruptcy.  If Tenant files a petition for
reorganization under chapters 11 or 13 of the Bankruptcy Code or a proceeding
that is filed by or against Tenant under any other chapter of the Bankruptcy
Code is converted to a chapter 11 or 13 proceeding and Tenant’s trustee or
Tenant as a debtor-in-possession fails to assume this Lease within sixty (60)
days from the date of the filing of the petition or the conversion, the trustee
or the debtor-in-possession will be deemed to have rejected this Lease. To be
effective, an election to assume this Lease must be in writing and addressed to
Landlord and, in Landlord’s business judgment, all of the following conditions,
which Landlord and Tenant acknowledge to be commercially reasonable, must have
been satisfied:

 

(1)                                  The
trustee or the debtor-in-possession has cured or has provided to Landlord
adequate assurance, as defined in this subsection (b), that:

 

(a)                                  The
trustee will cure all monetary defaults under this Lease within ten
(10) days from the date of the assumption; and

 

(b)                                 The
trustee will cure all non-monetary defaults under this Lease within thirty (30)
days from the date of the assumption.

 

(2)                                  The
trustee or the debtor- in-possession has compensated Landlord, or has provided
to Landlord adequate assurance, as defined in this subsection (b), that within
ten (10) days from the date of the assumption Landlord will be compensated
for any pecuniary loss it incurred arising from the default of Tenant, the
trustee, or the debtor-in-possession as recited in Landlord’s written statement
of pecuniary loss sent to the trustee or the debtor-in-possession.

 

(3)                                  The
trustee or the debtor-in-possession has provided Landlord with adequate
assurance of the future performance of each of Tenant’s obligations under the
Lease; provided, however, that:

 

(a)                                  The
trustee or debtor-in-possession will also deposit with Landlord, as security
for the timely payment of Rent, an amount equal to three (3) months’
Monthly Base Rent and other monetary charges accruing under this Lease.

 

(b)                                 If
not otherwise required by the terms of this Lease, the trustee or the
debtor-in-possession will also pay in advance, on each day that the Rent is
payable, one-twelfth of Tenant’s annual obligations under the lease for the
Additional Rent.

 

(c)                                  From
and after the date of the assumption of this Lease, the trustee or the
debtor-in-possession will pay the Rent payable under this Lease in advance in
equal monthly installments on each day that the Rent is payable.

 

24

 

(d)                                 The
obligations imposed upon the trustee or the debtor-in-possession will continue
for Tenant after the completion of bankruptcy proceedings.

 

(4)                                  Landlord
has determined that the assumption of this Lease will not:

 

(a)                                  Breach
any provision in any other lease, mortgage, financing agreement, or other
agreement by which Landlord is bound relating to the Project; or

 

(b)                                 Disrupt,
in Landlord’s judgment, the tenant mix of the Project or any other attempt by
Landlord to provide a specific variety of tenants in the Project that, in
Landlord’s judgment, would be most beneficial to all of the tenants of the
Project and would enhance the image, reputation, and profitability of the
Project.

 

(5)                                  For
purposes of this subsection (b), “adequate assurance” means that:

 

(a)                                  Landlord
will determine that the trustee or the debtor-in-possession has, and will
continue to have, sufficient unencumbered assets after the payment of all
secured obligations and administrative expenses to assure Landlord that the
trustee or the debtor-in-possession will have sufficient funds to fulfill
Tenant’s obligations under this Lease and to keep the Premises properly staffed
with sufficient employees to conduct a fully operational, actively promoted
business on the Premises; and

 

(b)                                 An
order will have been entered segregating sufficient cash payable to Landlord or
a valid and perfected first lien and security interest will have been granted
in property of Tenant, trustee, or debtor-sin-possession that is acceptable for
value and kind to Landlord, to secure to Landlord the obligation of the trustee
or debtor-in-possession to cure the monetary or non-monetary defaults under
this Lease within the time periods set forth above.

 

(c)                                  Termination
Upon Bankruptcy.  In the event that this Lease is assumed by a
trustee appointed for Tenant or by Tenant as debtor-in-possession under the
provisions of subsection (b) above and, thereafter, Tenant is either
adjudicated a bankrupt or files a subsequent petition for rearrangement under
Chapter 11 of the Bankruptcy Code, then Landlord may terminate, at its option,
this Lease and all Tenant’s rights under it, by giving written notice of
Landlord’s election to terminate.

 

(d)                                 Assignment
by Bankruptcy Trustee.  If the trustee or the
debtor-in-possession has assumed the Lease, under the terms of subsection
(a) or (b) above, and elects to assign Tenant’s interest under this
Lease or the estate created by that interest to any other person, that interest
or estate may be assigned only if Landlord acknowledges in writing that the
intended assignee has provided adequate assurance, as defined in this subsection
(d), of future performance of all of the terms, covenants, and conditions of
this Lease to be performed by Tenant. For the purposes of this subsection
(d) of this Section 20, “adequate assurance of future performance”
means that Landlord has ascertained that each of the following conditions has
been satisfied:

 

(1)                                  The
assignee has submitted a current financial statement, audited by a certified
public accountant, that shows a net worth and working capital in amounts

 

25

 

determined by Landlord to
be sufficient to assure the future performance by the assignee of Tenant’s
obligations under this Lease;

 

(2)                                  If
requested by Landlord, the assignee will obtain guarantees, in form and
substance satisfactory to Landlord from one or more persons who satisfy
Landlord’s standards of creditworthiness;

 

(3)                                  Landlord
has obtained all consents or waivers from any third party required under any
lease, mortgage, financing arrangement, or other agreement by which Landlord is
bound, to enable Landlord to permit the assignment;

 

(4)                                  When,
pursuant to the Bankruptcy Code, the trustee or the debtor-in-possession is
obligated to pay reasonable use and occupancy charges for the use of all or
part of the Premises, the charges will not be less than the Monthly Base Rent
as defined in this Lease and Additional Rent and other monetary obligations of
Tenant included herein as Rent.

 

(e)                                  No
Waiver.  Neither Tenant’s interest in the Lease nor any estate of
Tenant created in the Lease will pass to any trustee, receiver, assignee for
the benefit of creditors, or any other person or entity, or otherwise by
operation of law under the laws of any state having jurisdiction of the person
or property of Tenant unless Landlord consents in writing to the transfer.
Landlord’s acceptance of Rent or any other payments from any trustee, receiver,
assignee, person, or other entity will not be deemed to have waived, or waive,
the need to obtain Landlord’s consent or Landlord’s right to terminate this Lease
for any transfer of Tenant’s interest under this Lease without that consent.

 

21.                               Subordination
and Attornment.  Tenant accepts this Lease and the Premises
subject and subordinate to any mortgage(s) or deed(s) of trust now or
at any time hereafter constituting a lien or charge upon the Premises or the
Project. This provision is self-operative and no further instrument of
subordination will be required in order to effect it. Tenant will at any time
on demand execute any instruments, releases or other documents which may be
required by any mortgagee for the purpose of subjecting and subordinating this
Lease to the lien of any such mortgage or deed of trust. Tenant agrees that if
the holder of any mortgage, deed of trust or other encumbrance encumbering the Project
succeeds to Landlord’s interest in the Premises, Tenant will pay to such holder
all Rents subsequently payable under this Lease and Tenant will, upon request
of such successor in interest, automatically become the Tenant of and attorn to
such successor in interest without change in the terms or provisions of this
Lease. Such successor in interest will not be bound by (a) a payment of
Monthly Base Rent or Rent for more than one month in advance or (b) any
amendment or modification of this Lease made without the written consent of
such successor in interest. Tenant will, upon demand, execute, acknowledge and
deliver an instrument or instruments confirming such attornment.

 

22.                               Mechanic’s Liens and Tenant’s Taxes.

 

(a)                                  Tenant
shall pay or cause to be paid all costs for work done by or on behalf of Tenant
or caused to be done by or on behalf of Tenant on the Premises of a character
which will or may result in liens against Landlord’s interest in the Premises
or Project and Tenant will keep the Premises and Project free and clear of all
mechanic’s liens and other liens on

 

26

 

account of work done for
or on behalf of Tenant or persons claiming under Tenant. Tenant hereby agrees
to indemnify, defend and save Landlord harmless of and from all liability,
loss, damages, costs or expenses, including reasonable attorneys’ fees,
incurred in connection with any claims of any nature whatsoever for work
performed for, or materials, services or supplies furnished to Tenant,
including lien claims of laborers, materialmen or others. Should any such liens
be filed or recorded against the Premises or Project with respect to work done,
services performed for or materials supplied to or on behalf of Tenant or
should any action affecting the title thereto be commenced, Tenant shall cause
such liens to be released of record within five (5) days after notice
thereof. If Tenant desires to contest any such claim of lien, Tenant shall
nonetheless cause such lien to be released of record by the posting of adequate
security with a court of competent jurisdiction as may be provided by
Colorado’s mechanic lien statutes. If Tenant shall be in default in paying any
charge for which such a mechanic’s lien or suit to foreclose such a lien has been
recorded or filed and shall not have caused the lien to be released or suit
dismissed as aforesaid, Landlord may (but without being required to do so) pay
such lien or claim and any costs associated therewith, and the amount so paid,
together with reasonable attorneys’ fees incurred in connection therewith,
shall be immediately due from Tenant to Landlord as Additional Rent.

 

(b)                                 Tenant
shall be liable for and shall pay at least ten (10) days before
delinquency and Tenant hereby agrees to indemnify and hold Landlord harmless
from and against any liability in connection with, all taxes levied against any
personal property, fixtures, machinery, equipment, apparatus, systems and
appurtenances placed by or on behalf of Tenant in or about or utilized by Tenant
in, upon or in connection with the Premises (“Equipment Taxes”). If any
Equipment Taxes are levied against Landlord or Landlord’s property or if the
assessed value of Landlord’s property is increased by the inclusion therein of
a value placed upon such personal property, fixtures, machinery, equipment,
apparatus, systems or appurtenances of Tenant, and if Landlord, after written
notice to Tenant, pays the Equipment Taxes or taxes based upon such an
increased assessment (which Landlord shall have the right to do regardless of
the validity of such levy, but under proper protest if requested by Tenant
prior to such payment and if payment under protest is permissible), Tenant
shall pay to Landlord upon demand, as Additional Rent hereunder, the taxes so
levied against Landlord or the proportion of such taxes resulting from such
increase in the assessment; provided, however, that in any such event, Tenant
shall have the right, on behalf of Landlord and with Landlord’s full
cooperation, but at no cost to Landlord, to bring suit in any court of
competent jurisdiction to recover the amount of any such tax so paid under
protest, and any amount so recovered shall belong to Tenant (provided Tenant
has previously paid such amount to Landlord). Notwithstanding the foregoing to
the contrary, Tenant shall cooperate with Landlord to the extent reasonably
necessary to cause the fixtures, furnishings, equipment and other personal
property to be assessed and billed separately from the Project or the real
property of which the Premises form a part, and Landlord shall use reasonable
efforts to treat all other Tenants on the same basis.

 

(c)                                  Tenant
shall pay to Landlord, as Additional Rent, any excise, sales, privilege or
other tax, assessment or other charge (other than income or franchise taxes)
imposed, assessed or levied by any governmental or quasi-governmental authority
or agency upon Landlord on account of this Lease, the Rent or other payments
made by Tenant hereunder, any other benefit received by Landlord hereunder,
Landlord’s business as a lessor hereunder, or

 

27

 

otherwise in respect of
or as a result of the agreement or relationship of Landlord and Tenant
hereunder.

 

23.                               Authorities
for Action and Notice.

 

(a)                                  Except
as otherwise provided herein, Landlord may, for any matter pertaining to this
Lease, act by and through its Project manager or any other person designated in
writing from time to time.

 

(b)                                 All
notices or demands required or permitted to be given to Landlord hereunder
shall be in writing, and shall be deemed duly served when received, if hand
delivered and receipted for, or three (3) days after deposit in the United
States mail, with proper postage prepaid, certified mail, return receipt
requested, addressed to Landlord at its address as specified in Section 1
hereof. All notices or demands required to be given to Tenant hereunder shall
be in writing, and shall be deemed duly served when received, if hand
delivered, or three (3) days after deposited in the United States mail,
with proper postage prepaid, certified mail, return receipt requested,
addressed to Tenant at its address as specified in Section 1 hereof.
Either party shall have the right to designate in writing, served as above
provided, a different address to which notice is to be provided. The foregoing
shall in no event prohibit notice from being given as provided in Rule 4
of the Colorado Rules of Civil Procedure, as the same may be amended from
time to time.

 

24.                               Estoppel
Certificates.  Tenant agrees that, from time to time, upon
not less than ten (10) business days prior request by Landlord (and which
ten-day period is not subject to any notice and cure periods otherwise provided
under this Lease), Tenant shall execute and deliver to Landlord a written
Certificate in substantially the form and substance of Exhibit G
attached hereto and made a part hereof, certifying that this Lease is in full
force and effect, the date to which rent has been paid, the unexpired Term of
the Lease, that not more than one (1) month’s rental has been paid in
advance, and all other matters and statements pertaining to this Lease as may
be requested by Landlord or Landlord’s respective lenders. If Tenant fails to
execute and deliver any such Certificate within ten (10) days after such
request, then such failure shall constitute a material default by Tenant under
this Lease, and in such event, Tenant agrees to pay to Landlord as liquidated
damages therefore (and in addition to all equitable remedies available to
Landlord) an amount equal to Five Hundred Dollars ($500.00) per day for each
day that Tenant fails to so deliver such Certificate to Landlord after the
expiration of such ten (10) day period.

 

If Tenant fails to execute any such instrument within
said ten (10) day period, Tenant irrevocably appoints Landlord as its
attorney-in-fact, in Tenant’s name, to execute such instrument and Tenant’s
failure to deliver such Estoppel Certificate within said ten (10) day
period shall be conclusive upon Tenant that this Lease is in full force and
effect, without modification, except as may be represented by Landlord, that
there are no uncured defaults in Landlord’s performance, not more than one
(1) month’s rental has been paid in advance, and that all other statements
required to be made in the Estoppel Certificate are conclusively made.

 

It is understood and agreed that Tenant’s obligation
to furnish such Estoppel Certificates in a timely fashion is a material
inducement for Landlord’s execution of this Lease.

 

28

 

25.                               Landlord’s
Review of Tenant’s Documents. In the event Tenant shall request
Landlord’s approval of, or consent to, any documents/instruments concerning
Tenant’s financing arrangements or security agreements with third parties, or
any other document/instrument review for Tenant’s benefit, Tenant agrees that
it shall pay, as so much Additional Rent under this Lease, Landlord’s
reasonable administrative costs and attorneys’ fees, costs and expenses
incurred with respect to Landlord’s review, approval or rejection thereof.

 

26.                               Miscellaneous.

 

(a)                                  Words
of any gender used in this Lease will be held and construed to include any
other gender, and words in the singular number shall be held to include the
plural, and vice versa, unless the context otherwise requires.

 

(b)                                 The
terms, provisions, covenants and conditions contained in this Lease shall apply
to, inure to the benefit of, and be binding upon, the parties to this Lease and
their respective heirs, legal representatives, successors and permitted
assigns, except as otherwise expressly provided in this Lease. Landlord shall
have the right to transfer and assign, in whole or in part, its rights and
obligations in the Project and this Lease. Each party agrees to furnish to the
other, promptly upon demand, a corporate resolution, proof of due authorization
by partners, or other appropriate documentation evidencing the authorization of
such party to enter into this Lease, and the binding authority of the signatory
hereto.

 

(c)                                  The
captions inserted in this Lease are for convenience only and in no way define,
limit or otherwise describe the scope or intent of this Lease, or any provision
hereof, or in any way affect the interpretation of this Lease.

 

(d)                                 This
Lease may not be altered, changed or amended except by an instrument in writing
signed by both parties to this Lease.

 

(e)                                  All
obligations of Tenant under this Lease which are not fully performed as of the
expiration or earlier termination of this Lease will survive the expiration or
earlier termination of the Lease term, including without limitation all payment
obligations with respect to taxes and insurance and all obligations concerning
the condition of the Premises. Upon the expiration or earlier termination of
this Lease, and prior to Tenant’s vacating the Premises, Tenant will pay to
Landlord any amount reasonably estimated by Landlord to put the Premises,
including without limitation all heating and air conditioning systems and
equipment therein, in good condition and repair. Tenant shall also, prior to
vacating the Premises, pay to Landlord the amount, as reasonably estimated by
Landlord, of Tenant’s obligation for real estate taxes and insurance premiums
for the year in which the Lease expires or terminates. All such amounts shall
be used and held by Landlord for payment of such obligations of Tenant under
this Lease, with Tenant being liable for any additional costs upon demand by
Landlord, or with any excess to be returned to the Tenant after all such
obligations have been determined and satisfied, as the case may be. Any
security deposit held by Landlord may, upon Landlord’s election, be credited
against the amount payable by Tenant under this subsection.

 

(f)                                    If
any clause or provision of this Lease is illegal, invalid or unenforceable
under present or future laws effective during the Term of this Lease, then arid
in that event, it is

 

29

 

the intention of the
parties to this Lease that the remainder of this Lease will not be affected
thereby, and it is also the intention of the parties to this Lease that in lieu
of each clause or provision of this Lease that is illegal, invalid or
unenforceable, there be added as a part of this Lease a clause or provision as
similar in terms to such illegal, invalid or unenforceable clause or provision
as may be possible and be legal, valid and enforceable.

 

(g)                                 Landlord
reserves the right to relocate the Premises to substantially comparable space
within the Project. Landlord will give Tenant written notice of its intention
to relocate the Premises, and Tenant will complete its relocation within thirty
(30) days after Landlord’s notice. The Monthly Base Rent of the new premises
will not exceed the Monthly Base Rent for the Premises unless Landlord and
Tenant otherwise agree in writing. Effective on the date of such relocation
this Lease will be amended by deleting the description of the Premises and
substituting for it a description of the new premises. Landlord agrees to pay
the reasonable costs of moving Tenant to such other space within the Project.

 

(h)                                 This
Lease is an offer only, subject to prior leasing of the Premises and such offer
is subject to withdrawal or non-acceptance by Landlord or to other leasing of
the Premises without notice. This Lease will not be valid or binding unless and
until accepted by Landlord in writing and a fully executed copy has been
delivered to both parties to this Lease.

 

(i)                                     Landlord
shall pay a commission to the Landlord’s Broker identified in Section 1 of
this Lease pursuant to a separate agreement between them. Tenant represents and
warrants that it has dealt with no broker, agent or other person in connection
with this transaction and that no broker, agent or other person brought about
this transaction (other than the Tenant’s Broker identified in Section 1).
Tenant agrees to indemnify and hold Landlord harmless from and against any
claims by any broker, agent or other person claiming a commission or other form
of compensation by virtue of having dealt with Tenant with regard to this
Lease, including, without limitation, Tenant’s Broker.

 

(j)                                     Time
is of the essence hereof.

 

(k)                                  This
Lease shall be governed by and construed in accordance with the applicable laws
of the State of Colorado.

 

(l)                                     This
Lease, together with the exhibits attached hereto, contains the entire
agreement of the parties and, except as otherwise expressly set forth herein,
may not be amended or modified in any manner except by an instrument in writing
signed by both parties.

 

(m)                               Whenever
any term, covenant or provision of this Lease grants to Landlord a right of
approval or consent, Landlord agrees that such consent or approval, except as
otherwise specifically provided, will not be unreasonably withheld nor delayed.

 

(n)                                 Wherever
there is provided in this Lease a time limitation for performance by Landlord
or Tenant of any obligation, including but not limited to obligations related
to construction, repair, maintenance or service (but excluding Tenant’s
obligation to pay Rent and other monetary obligations of Tenant hereunder), the
time provided for shall be extended for as long as, and to the extent that
delay in compliance with such limitation is due to, an act of God,

 

30

 

government control, labor
disputes, strikes, civil disturbance or other factors beyond the reasonable
control of either Landlord or Tenant, as applicable.

 

(o)                                 Neither
Tenant nor anyone acting through, for, or in place of Tenant, including but not
limited to any trustee, receiver, trustee in bankruptcy or other liquidating
agent, shall conduct or advertise on or from or pertaining to the Premises, any
auction or close-out or going out of business or liquidation sale.

 

	
  LANDLORD:

  	
   

  	
  WKB VALUE PARTNERS, a
  Delaware limited 

  Partnership

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  KOLL BREN SCHREIBER
  REALTY

  ADVISORS, INC., a Delaware corporation, 

  its Authorized Managing Agent

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Steve Jarecki

  
	
   

  	
   

  	
   

  	
   

  	
  Steve Jarecki, or Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  TENANT:

  	
   

  	
  MCFSA, LTD., a Texas
  limited partnership d/b/a 

  Metroplex Control Systems

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Metroplex Commercial
  Fire & Security 

  Alarms, Inc., its general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ [ILLEGIBLE]

  
	
   

  	
   

  	
   

  	
  Name:

  	
  /s/ [ILLEGIBLE]

  
	
   

  	
   

  	
   

  	
  Its: 

  	
  President

  
								

 

31

 

ADDENDUM

TO

ARAPAHOE BUSINESS PARK I LEASE AGREEMENT

 

This ADDENDUM TO ARAPAHOE
BUSINESS PARK I LEASE AGREEMENT (this “Addendum”) is attached to and made part
of that certain Arapahoe Business Park I Lease Agreement (the “Lease”) dated November
19, 2002, between WKB VALUE PARTNERS, L.P., a Delaware limited partnership (“Landlord”)
and MCFSA, LTD., a Texas limited partnership d/b/a Metroplex Control Systems (“Tenant”)
as if set forth therein in full. Any initially capitalized terms not defined in
this Addendum shall have the meaning set forth in the Lease. In the event of a
conflict between the terms hereof and the terms of the Lease the terms of this
Addendum shall control.

 

1.             The
following paragraph is added to the Lease as Section 2(d):

 

(d)           Early Access.  From arid after December 21, 2002, but
prior to the Commencement Date, Tenant, at its sole risk but with no obligation
to pay Rent, may enter the Premises for the purpose of installing furniture,
fixtures and equipment and other leasehold improvements (“FF&E”),
including, but not limited to, wall and floor coverings, millwork and
draperies, provided that such entry and work do not unreasonably interfere in
any way with the performance of Landlord’s Work or with other workers or
Tenants in or about the building or buildings in which the Premises are
located. Any such entry by Tenant shall be subject to all terms and conditions
of this Lease, which shall be in full force and effect, except for Tenant’s
obligation to pay Rent. At any time during such period of early entry, if
Landlord notifies Tenant that Tenant’s entry or work is interfering with or
delaying the performance of work to be performed by Landlord or other workers
in and about the Building, or causing any disruption whatsoever, Tenant shall
forthwith discontinue any further work and shall vacate the Premises, and shall
cause its workmen or contractors to remove therefrom, any equipment, materials
or installations which are the subject of Landlord’s notice. All rights of
Tenant under this Section 2(d) will be subject to the requirements of
applicable building codes and zoning requirements so as not to interfere with
Landlord’s obtaining of a certificate of occupancy for the Premises. Landlord
has the right to impose such additional conditions on Tenant’s early entry as
Landlord, in its sole discretion, deems appropriate, and will further have the
right to require that Tenant execute an early entry agreement containing such
conditions prior to Tenant’s early entry.

 

2.             The
following paragraph is added to the Lease as Section 2(e):

 

(e)           Option to Extend Term.  Provided that no event of default has occurred
and is continuing beyond any applicable cure period, Tenant shall have one (1) option
to renew this Lease for one (1), additional five (5) year term (the “Extended
Term”) by giving written notice (“Tenant’s Extension Notice”) to Landlord at
least six (6) months prior to the expiration of the Primary Lease Term.
The Extended Term shall be on the same terms, conditions, and rentals set forth
in the Lease, except (i) Tenant shall

 

1

 

	
  Renewal Option:

  	
   

  
	
   

  
	
  Amount of Security
  Deposit:

  	
   

  
			

 

2.             The Lease represents
the entire agreement between Landlord and Tenant and has not been modified or
amended except as indicated above.

 

3.             The Lease (modified
as indicated above) is presently in full force and effect in accordance with
its terms and Tenant has accepted the Premises.

 

4.             All rent and
additional rent payable under the Lease as of the date of this certificate has
been paid in full and no rent or additional rent to become payable under the
Lease has been paid more than 30 days in advance.

 

5.             No options to
purchase or tights of first refusal are contained in the Lease, and there are
no other agreements between Landlord and Tenant, oral or written, regarding the
Premises or the Property, except as stated in the Lease.

 

6.             To the best of Tenant’s
knowledge, no party to the Lease is in default thereunder, and no event has
occurred which, with the giving of notice or the passage of time, or both,
would constitute a default thereunder.

 

7.             Tenant has no
counterclaims, liens, defenses or offsets to its obligations under the Lease or
to the enforcement of any of the Landlord’s rights thereunder, and Tenant has
no outstanding claim for credit reimbursement on account of Tenant’s
improvements to the Premises.

 

8.             Landlord has
completed all alterations, additions, painting and refurbishing to the Premises
and the Property required to be performed by Landlord, and there are no rent
concessions, rebates, free rents or similar inducements except as set forth in
the Lease.

 

9.             The Lease is subject
and subordinate to any and all existing and future mortgages and any ground
lease of the Premises.

 

10.           [USE THIS PROVISION IF ESTOPPEL FOR LENDER.] Tenant
acknowledges that if Lender succeeds to the interest of Landlord under the
Lease, Lender shall not be liable for any act or omission of any prior landlord
(including Landlord), liable for the return of any advance rental deposit or any
security deposit (unless such sums have actually been received by Lender as
security for Tenant’s performance under the Lease), subject to any offset or
defense which Tenant may have against any such prior landlord or bound by any
rent or additional rent Tenant may have paid for more than the current month,
or bound by any assignment, surrender, termination, cancellation, waiver,
release, amendment or modification of the Lease not expressly permitted by the
Lease made without its express written consent. Notwithstanding the foregoing,
provided that Tenant is not then in default under the terms of the Lease and
that

 

G-2

 

Tenant has not previously
assigned the Lease or sublet the Premises, by operation of law or otherwise, if
Lender succeeds to the interest of Landlord under the Lease and Lender has not
actually received the Security Deposit paid by Tenant to Landlord under Section 3(b) of
the Lease, Lender shall, on the first day of the last month of the Lease Term,
credit the amount of the Security Deposit towards the Base Rent due from Tenant
for such month.

 

11.                                 [USE THIS PROVISION IF ESTOPPEL FOR LENDER.]  If Lender succeeds to the interest of Landlord
under the Lease by any means, Tenant agrees to attorn to Lender and be bound to
Lender under all the terms of the Lease on the condition that Lender does not
disturb the possession of the Tenant under the Lease if the Lease is in full
force and effect and the Tenant is not then in default under the Lease.

 

Tenant acknowledges that
Purchaser and Lender have requested this certificate in connection with a
proposed purchase and financing of the Property, and that Purchaser and Lender
may rely on the information set forth in this certificate.

 

 

	
  TENANT:

  	
  MCFSA LTD., a Texas
  limited partnership d/b/a

  Metroplex Control Systems

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  Metroplex Commercial
  Fire & Security

  Alarms, Inc., its general partner

  
	
   

  
	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Its:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
								

 

G-3

 

affected. However, if for
any reason the Leasehold Improvements are not complete within six (6) months
following the Commencement Date (as such date may have been extended by any
other provision of this Lease), Tenant’s Rent shall be abated until such time
as the Leasehold Improvements are substantially complete.

 

7.3.                              Tenant
Delays.  Except for delays caused by
the acts or omissions of Landlord or by events of Force Majeure, no delays in
completion of the Leasehold Improvements for any reason whatsoever shall
postpone the Commencement Date. Specifically, without limiting the generality
of tie foregoing, the Commencement Date shall not be postponed on account of
delays caused by Tenant’s requirements for the Leasehold Improvements, by
shortages, by unavailability of long lead procurement items of unusual or
nonstandard materials required for the Leasehold Improvements, or on account of
any other delay caused by Tenant.

 

8.                                       MISCELLANEOUS.

 

8.1.                              Ownership
of Improvements.  Tenant acknowledges
and agrees that, subject to Section 8 of the Lease, any and all
construction, other leasehold improvements and fixtures, at any time
constructed, placed, or maintained upon the Premises whether or not paid for by
Tenant shall be and remain the property of Landlord, or of Landlord’s successors
or assigns.

 

8.2.                              Conflicts.
 In the event of any conflict between the
provisions of the Lease and the provisions of this Work Letter, the provisions
of the Lease will control.

 

8.3.                              Effect
of Landlord Approval.  No approval by
Landlord of any drawings, plans, or specifications that are prepared in
conjunction with construction of the Leasehold Improvements in the Premises
will constitute a representation or warranty by Landlord as to the adequacy or
sufficiency of such drawings, plans or specifications, or the improvements to
which they relate, for any use purpose of condition, including conformity to
any applicable codes or laws, but such approval will merely be the consent of
Landlord to the construction or installation of improvements in the Premises,
according to said drawings, plans, or specifications.

 

[REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK]

 

F-4

 

have no further right of
renewal after the Extended Term prescribed above, and (ii) the rental rate
for the Extended Term shall be the then prevailing Market Rate (defined below).
Upon receipt of Tenant’s Extension Notice, Landlord shall have twenty (20) days
in which to respond in writing to Tenant with the then prevailing Market Rate. “Market Rate” shall be equal to whatever lease rates (plus
whatever periodic adjustments) Landlord is quoting to prospective tenants for
new leases of comparable space in the Project at the time of Tenant’s Extension
Notice, or if no comparable space exists in the Project, then whatever is then
being quoted to prospective tenants for new leases of reasonably comparative
space in reasonably comparable office buildings within the same general
geographic area as the Project, taking into account any concessions or tenant
improvement allowances then being given. Notwithstanding the above provisions
to the contrary: (a) in no event will the lease rental rate for the
Extended Term be less than the annual rent and monthly installments due in the
last year of the Primary Lease Term; and (b) if Tenant has not agreed in
writing to accept the Market Rate before ninety (90) days prior to the
expiration of the Primary Lease Term, Landlord at its option may terminate the
Lease as of the expiration of the Primary Lease Term. If Landlord has not
exercised the option contained in subpart (b) of the immediately preceding
sentence, but Tenant has not agreed in writing to accept the Market Rate prior
to the expiration of the Primary Lease Term, the Lease shall terminate at the
expiration of the Primary Lease Term.

 

2

 

EXHIBIT A

 

PREMISES

 

A-1

 

EXHIBIT B

 

LEGAL
DESCRIPTION OF THE PROJECT

 

Lot 4, Block 1,

Arapahoe Airport Center Joint Venture Filing No. 2,

TOGETHER with perpetual non-exclusive easements over and across a portion of
Lot 3, Block 1, Arapahoe Airport Center Joint Venture Filing No. 2 as
created by Easement Agreement dated August 16, 1983, recorded August 18,
1983 in Book 3945 at Page 238, and Corrective Addendum to Easement
Agreement recorded October 7, 1987 in Book 5281 at Page 245, County of
Arapahoe, State of Colorado.

 

B-1

 

EXHIBIT C

 

ESTOPPEL
AND COMMENCEMENT DATE CERTIFICATE

 

THIS ESTOPPEL AND COMMENCEMENT DATE CERTIFICATE (“Certificate”)
is executed this           day
of                   , 2002, by WKB VALUE
PARTNERS, a Delaware limited partnership (“Landlord”) and MCFSA, LTD., a Texas
limited partnership d/b/a Metroplex Control Systems (“Tenant”) with respect to
and forming a part of that certain Arapahoe Business Park I Lease Agreement (“Lease”)
dated
                                            ,
2002, for the premises commonly known as 7388 South Revere Parkway, Units 601
through 604, Centennial, Colorado 80112 (“Premises”).

 

RECITALS

 

A.            The
parties desire to reaffirm or amend and certify to certain provisions of the
Lease.

 

B.            The
parties desire that the matters set forth herein be conclusive and binding on
the parties.

 

NOW, THEREFORE, for good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:

 

1.             The Lease
Commencement Date is deemed and agreed to be                                 ,
2003, and the Lease Expiration Date is agreed and deemed to be
                                    ,
2008, unless sooner terminated, as provided in the Lease.

 

2.             Tenant’s
first installment of Monthly Base Rent in the amount of
                                                  
Dollars ($     ) for the period of
                                                        
(is due on) (was paid on)
                                            ,
2003.

 

3.             Tenant’s
first installment of Tenant’s Pro Rata Share of Operating Expenses in the
amount
of                                                                            
Dollars ($       ) (is due on) (was paid
on)
                        ,
2003.

 

4.             By
execution hereof, Tenant acknowledges and agrees that all improvements or other
work required of Landlord has been satisfactorily performed and Tenant hereby
accepts the Premises in full compliance with the terms and conditions of the
Lease.

 

5.             Except as may be
amended herein, all terms and conditions of the Lease shall continue in full
force and effect and are hereby republished and reaffirmed in their entirety.

 

6.             This Certificate
shall be binding upon and may be relied upon by the parties hereto and their
respective legal representatives, successors and assigns.

 

C-1

 

IN WITNESS WHEREOF, the parties have executed this
Certificate as of the day and year first above written.

 

	
  LANDLORD:

  	
  WKB VALUE PARTNERS, a
  Delaware limited

  Partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  KOLL BREN SCHREIBER
  REALTY

  ADVISORS, INC., a Delaware corporation,

  its Authorized Managing Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Steve Jarecki, Senior
  Vice President

  
	
   

  	
   

  	
   

  
	
  TENANT:

  	
  MCFSA LTD., a Texas
  limited partnership d/b/a

  Metroplex Control Systems

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  Metroplex Commercial
  Fire & Security

  Alarms, Inc., its general partner

  
	
   

  
	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Its:

  	
   

  
								

 

C-2

 

EXHIBIT D

 

GUARANTY
OF LEASE

 

Intentionally
Omitted

 

D-1

 

EXHIBIT E

 

RULES AND
REGULATIONS

 

1.                                       At
all times during the Term of this Lease the Landlord shall have the right by
itself, its agents and employees, to enter into and upon the Premises during
reasonable business hours for the purpose of examining and inspecting the same
and determining whether the Tenant shall have complied with his obligations
under the Lease and the Rules and Regulations contained herein, with
respect to the care and maintenance of the Premises and the repair or
rebuilding of the improvements thereon, when necessary.

 

2.                                       Tenant
shall not use the name of the Project for any purpose other than Tenant’s
business address and shall never use a picture or likeness of the Project or
Premises in any advertisement, notice or correspondence without the Landlord’s
written consent thereto. Landlord hereby consents to Tenant’s use of a picture
of the building in which the Premises are located in tenant’s advertising
brochure and computer website.

 

3.                                       Tenant
shall not make or permit any noise, vibration or odor that is objectionable to the
public, or to other occupants of the Project, to emanate from the Premises and
shall not create or maintain a nuisance thereon and shall not disturb, solicit
or canvass any occupant and shall not do any act tending to injure the
reputation of the Project or the Premises. Nor shall Tenant use the Premises
for lodging, sleeping, cooking (except normal office kitchen use), or for any
immoral or illegal purpose or for any purpose that will damage the Project, or
the reputation thereof, or for any purposes other than those specified in this
Lease.

 

4.                                       Tenant
shall not place or permit any radio antenna, loud speakers, sound amplifiers,
or similar devices on the roof or outside of the Premises or Project.
Notwithstanding the foregoing, subject to Tenant’s compliance with the
requirements of Section 8, above, Tenant may install on the exterior of
the building in which the Premises are located, a closed circuit television
security camera, access control card readers, and one fire alarm horn/strobe
unit if required by applicable governmental laws, ordinances, codes, or
regulations.

 

5.                                       The
sidewalks, entrances, passages, vestibules, stairways, corridors, halls,
parking and loading areas must not be obstructed or encumbered or used for any
purpose other than ingress and egress to and from the Premises. No furniture or
other items shall be placed in front or back of the Premises, or on/in any
sidewalks, entrances, passages, vestibules, stairways, corridors, halls,
loading or parking areas. Landlord shall have the right to remove all
non-permitted furniture or other items, without notice to Tenant, and at the
expense of Tenant.

 

6.                                       Supplies,
goods, materials, packages, furniture and all such items of every kind are to
be delivered at the entrance point provided therefor, or in such manner as the
Landlord may provide and the Landlord is not responsible for the loss or the
damage of any such property notwithstanding such loss or the damage which may
occur through the

 

E-1

 

carelessness or
negligence of the employees of the Project.  All such items moved in or out of the Project
or Premises shall be done at such time and in such manner as acceptable to the
Landlord.

 

7.                                       Tenant
shall see that the windows and doors of the Premises are closed and securely
locked before leaving the Project or Premises. Tenant must observe strict care
and caution that all water faucets or other apparatus are entirely shut off
before Tenant or Tenant’s employees leave the Project or Premises and that all
electricity, gas or air shall likewise be carefully shut off, so as to prevent
waste or damage, and for any default or carelessness Tenant shall make good all
injuries sustained by Landlord or other Tenants or occupants of the Project or
Premises.

 

8.                                       If
Tenant elects to install any concession or vending machine in the Premises,
such machines and their products shall be limited to the express use of Tenant
and its employees and guests. Tenant shall not sell from the Premises the
following items: cigars, cigarettes, tobaccos, pipes, candies, newspapers,
magazines or greeting cards.

 

9.                                       Landlord
reserves the right to designate all sources furnishing sign painting, lettering
or awnings and to establish a limitation on sign or awning styles and format.
Tenant shall affix no additional signage or awnings not considered Project
standard, in the Landlord’s discretion, without prior written approval of
Landlord. Landlord shall have the right to remove all non-permitted signs or
awnings, without notice to Tenant, and at the expense of Tenant.

 

10.                                 The
Landlord at all times shall have the right to amend, modify or waive any of the
foregoing Rules and Regulations and to make such other and future rules and
regulations as the Landlord may adopt, provided such changes shall not
unreasonably interfere with the Permitted Use of the Premises. Tenant agrees to
comply with all such rules and regulations upon notice to Tenant from Landlord
thereof. In the event of any breach of any rules and regulations herein
set forth or any reasonable amendments, modifications or additions hereto,
Landlord shall have all remedies in this Lease provided for in the event of
default by Tenant.

 

11.                                 The
failure of the Landlord to seek redress for violation of, or insist upon the
strict performance of any covenants or conditions of this Lease or any of the Rules and
Regulations set forth above or hereafter adopted by Landlord, shall not prevent
a subsequent act, which would have originally constituted a violation, from
having all the force and effect of any original violation. The receipt by
Landlord of Rent with knowledge of the breach of any covenant of this Lease or
breach of these Rules aid Regulations shall not be deemed a waiver of such
breach. The failure of Landlord to enforce any of these Rules and
Regulations as set forth above or hereafter adopted against Tenant or any other
tenant in the Project shall not be deemed a waiver of any such Rules and
Regulations.

 

12.                                 Landlord
shall not be liable to Tenant for violation of any said Rules and
Regulations or the breach of any covenant or condition in any Lease by any
other tenant in the Project.

 

E-2

 

13.           No
act or thing done or omitted to be done by Landlord or Landlord’s agent during
the Term of the Lease which is necessary to enforce these Rules and
Regulations shall constitute an eviction by Landlord nor shall it be deemed a
surrender or acceptance of the Premises, and no agreement to accept such
surrender shall be valid unless in writing signed by Landlord. No employee of
Landlord or Landlord’s agent shall have any power to accept the keys of the
Premises prior to the termination of the Lease. The delivery of keys to any
employee of Landlord or Landlord’s agent shall not be construed as a termination
of the Lease or a surrender of the Premises.

 

14.           Tenant
and its employees, agents and invitees shall park their vehicles only in those
parking areas designated by Landlord. Tenant shall not permit any vehicle in a
state of disrepair (including without limitation, flat tires, out of date
inspection stickers or license plates) in the parking areas. Tenant shall not
park any vehicle, truck, car, trailer or boat in the parking area for longer
than 24 hours without Landlord’s prior written approval. If Tenant or its
employees, agents or invitees park their vehicles in areas other than
designated parking areas for longer than 24 hours, Landlord shall have the
right without notice to Tenant to remove such vehicle at Tenant’s expense.
Tenant shall not permit the washing or repair of any vehicle on the parking
areas.

 

15.           No
animals, except as required by law, e.g. seeing eye dogs, shall be permitted in
or on the Premises or Project.

 

16.           Except
for Tenant Alterations consented to by Landlord pursuant to Section 8 of
the Lease, no additional lock or locks shall be placed by Tenant on any doors
in the Premises without the prior written consent of Landlord.

 

17.           Tenant
shall not conduct in or about the Premises or Project any auction, public or
private, without the prior written consent of Landlord.

 

18.           Tenant
shall not allow to be deposited any trash, refuse, cigarettes, or other
substances of any kind within or without the Premises or Project except in
refuse containers provided therefore. Landlord shall provide appropriate trash
bins located outside in the Project for removal of trash from the building and
Tenant shall perform janitorial trash removal in accordance with Section 7
of the Lease. Tenant shall not introduce onto the Project or Premises any item
or substance which might add an undue burden to the cleaning or maintenance of
the Premises or Project. Tenant shall exercise its best efforts to keep the
sidewalks, entrances, passages, courts, lobby areas, garages or parking areas,
stairways, vestibules, corridors and halls in and about the Premises and
Project clean and free from rubbish.

 

E-3

 

EXHIBIT F

 

WORK
LETTER AGREEMENT

 

(Improvements
Based on Space Plan)

 

This Exhibit “F” is attached to and made a part
of that certain Lease, dated November 19, 2002 by and between WKB Value
Partners, L.P. (“Landlord”), and MCFSA, LTD., a Texas limited partnership d/b/a
Metroplex Control Systems (“Tenant”), covering the premises known as: 7388
South Revere Parkway, Units 601 through 604, Centennial, Colorado 80112.

 

I.                                         TERMS:
The following terms are defined in this Work Letter:

 

1.1.          “Building”
means the building or buildings in the Project in which the Premises are
located.

 

1.2.          “Building Standard
Materials” means the quantity, quality, and style of materials,
finishes, and workmanship to be used during construction of the Leasehold
Improvements, which may be specified or changed from time to time by Landlord,
in Landlord’s sole discretion, for the Building.

 

1.3.          “Construction Documents”
means complete construction plans and specifications, including architectural,
mechanical and electrical plans and specifications, prepared by Landlord’s
Architect for the Leasehold Improvements, based on the Space Plan.

 

1.4.          “Landlord’s Architect”
means an architect or an engineer chosen by Landlord, in Landlord’s sole
discretion, for the preparation of the Construction Documents.

 

1.5.          “Leasehold Improvements”
means all alterations, leasehold improvements, and installations to be constructed
or installed by Landlord for Tenant in the Premises according to this Work
Letter.

 

1.6.          “Space Plan”
means the schematic space plan for the Leasehold Improvements to the Premises
dated November 8, 2002, and prepared by McDermott Planning & Design, Inc.,
including a full and accurate description of the size and location of all
partitions and doors, as well as equipment that could affect structural
components, service systems or facilities of the Building.

 

Any capitalized term used in this Work Letter and not
defined herein shall have the meaning set forth for such term in the Lease.

 

2.             CONSTRUCTION
DOCUMENTS.  Landlord’s Architect will
prepare all necessary Construction Documents and Tenant will cooperate with
Landlord and Landlord’s Architect by providing all design information necessary
for the preparation of the Construction Documents. Promptly after receipt of
all design information, Landlord’s Architect will prepare proposed Construction
Documents. Within three (3) business days after receipt of the proposed
Construction Documents, Tenant will either approve the same in writing or
provide Landlord

 

F-1

 

with written notice (“Notice
of Objection”), specifying how the proposed Construction Documents are
inconsistent with the Space Plan or the design information provided by Tenant,
and how the Construction Documents must be changed in order to overcome Tenant’s
objections. Each day following the third business day after the proposed
Construction Documents are submitted to Tenant until Tenant either approves
them or delivers such Notice of Objection will be a day of Tenant delay
pursuant to Section 7.3, below. Upon receipt of Tenant’s Notice of
Objection, Landlord’s Architect will prepare revised Construction Documents,
and upon submission of any further revisions, the procedures above will be
repeated. If the revised Construction Documents, or any further revisions, are
consistent with the design information and all requirements identified in Tenant’s
prior Notice of Objection, then each day following Landlord’s receipt of Tenant’s
subsequent Notice of Objection until the day on which Landlord receives Tenant’s
written approval of the revised Construction Documents will be a day of Tenant
delay pursuant to Section 7.3, below.

 

3.             CONSTRUCTION
OF LEASEHOLD IMPROVEMENTS.  On or
before the Commencement Date set forth in the Lease, Landlord will, at Landlord’s
cost and expense, cause the Leasehold Improvements to be constructed in the
Premises using Building Standard Materials, in a good and workmanlike manner,
free of any and all mechanic’s or other liens, substantially in accordance with
the Space Plan and the Construction Documents. The cost of any changes to the
Space Plan or Construction Documents made at Tenant’s request, and any
increased cost of the Leasehold Improvements resulting therefrom, shall be paid
by Tenant to Landlord within ten within ten (10) days of Landlord’s
provision to Tenant of an invoice therefor.

 

4.             ACCEPTANCE
OF LEASEHOLD IMPROVEMENTS: COMMENCEMENT DATE.  Five (5) days prior to the anticipated
completion date of the Leasehold Improvements, Landlord and Tenant shall
inspect the Leasehold Improvements and develop the “punch list” items to be
completed. Landlord will cause said items to be corrected or completed within
ten (10) business days after the punch list inspection, or as soon as
reasonably practicable thereafter. Landlord will not be responsible for any
items of damage to the Premises caused by Tenant, its agents, employees,
independent contractors, or suppliers. No promises to alter, remodel, or
improve the Premises or Building and no representations concerning the
condition of the Premises or Building have been made by Landlord to Tenant
other than what has been expressly identified in the Lease or this Work Letter.

 

5.             CHANGE
ORDERS.  Tenant may request changes
in the Leasehold Improvements, to be made at Tenant’s expense, during
construction by providing written request therefor to Landlord. All such
changes will be subject to Landlord’s prior written approval according to Section 6
below. Prior to commencing any change requested by Tenant, Landlord will
prepare and deliver to Tenant, for Tenant’s approval, a change order
identifying the total costs of such change, including all architectural fees,
engineering fees, consultant fees, contractor fees, and an amount sufficient to
reimburse Landlord for overhead and related expenses incurred in conjunction
with the change order, provided, however, that such Landlord overhead fees will
not exceed 15% of the costs associated with the change order. If Tenant fails
to approve and pay for such change order within five (5) business days
after delivery by Landlord, Tenant will be deemed to have withdrawn the
proposed change and Landlord will not proceed to perform the

 

F-2

 

change. Upon Landlord’s
receipt of Tenant’s approval and payment, Landlord will proceed to perform the
change.

 

6.                                       LANDLORD’S
APPROVAL.  All Construction
Documents, and change orders are expressly subject to Landlord’s prior written
approval. Landlord may withhold its approval of any such items that require
work which:

 

(a)           exceeds or adversely effects the
capacity or integrity of the Building’s structure, or any of its heating,
ventilating, air conditioning, plumbing, mechanical, electrical,
communications, life safety, or other systems;

 

(b)           is not approved by the holder of any
encumbrance;

 

(c)           would not be approved by a prudent
owner of property similar to the Building;

 

(d)           violates any agreement, including
other leases, which may affect the Building or bind the Landlord;

 

(e)           Landlord reasonably believes will
increase the cost of operating or maintaining any of the Building’s systems;

 

(f)            Landlord reasonably believes will
reduce the market value of the Premises or Building upon expiration of the
Term;

 

(g)           does not conform to applicable
building code or is not approved by any governmental authority having
jurisdiction over the Premises or Building;

 

(h)           does not meet or exceed Building
Standard Materials; or

 

(i)            Landlord reasonably believes will
infringe upon the architectural or historical integrity of the Building.

 

7.                                       DELAY.

 

7.1.          Force Majeure.  “Force Majeure” as used in this Work Letter means a strike or
other labor trouble, governmental preemption of priorities or other delays
caused by a national or other public emergency, or other cause, whether similar
or dissimilar to the above, beyond Landlord’s reasonable control that delays
the completion of the Leasehold Improvements. Upon occurrence of an event of
Force Majeure, Landlord shall within three (3) business days give notice
to Tenant, specifying the event of Force Majeure and the anticipated delay in
completion of Leasehold Improvements resulting therefrom. The Commencement Date
shall be postponed by the number of days that completion of the Leasehold
Improvements was actually delayed by an event of Force Majeure.

 

7.2.          Other Delays.  If Landlord should for any reason fail to
complete the Leasehold Improvements on or before the Commencement Date,
Landlord shall not be deemed to be in default or otherwise liable in damages to
Tenant, nor shall the Term of this Lease be

 

F-3

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