Document:

Exhibit 10.9

 

LEASE

 

 

1255 23RD STREET, L.P.,

a District of Columbia limited partnership

 

Landlord

 

and

 

CONVIO, INC.,

a Delaware corporation

 

Tenant

 

Suite 650

1255 23rd Street, NW

Washington, DC

 

 

April 3, 2009

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE 1.

  	
  BASIC LEASE
  PROVISIONS

  	
  1

  
	
  ARTICLE 2.

  	
  PREMISES, TERM,
  RENT

  	
  6

  
	
  ARTICLE 3.

  	
  USE AND
  OCCUPANCY; PARKING

  	
  8

  
	
  ARTICLE 4.

  	
  CONDITION OF THE
  PREMISES

  	
  9

  
	
  ARTICLE 5.

  	
  ALTERATIONS

  	
  9

  
	
  ARTICLE 6.

  	
  REPAIRS

  	
  13

  
	
  ARTICLE 7.

  	
  TAXES AND
  OPERATING EXPENSES

  	
  14

  
	
  ARTICLE 8.

  	
  REQUIREMENTS OF
  LAW

  	
  20

  
	
  ARTICLE 9.

  	
  SUBORDINATION

  	
  22

  
	
  ARTICLE 10.

  	
  SERVICES

  	
  24

  
	
  ARTICLE 11.

  	
  INSURANCE;
  PROPERTY LOSS OR DAMAGE

  	
  28

  
	
  ARTICLE 12.

  	
  EMINENT DOMAIN

  	
  32

  
	
  ARTICLE 13.

  	
  ASSIGNMENT AND
  SUBLETTING

  	
  33

  
	
  ARTICLE 14.

  	
  ACCESS TO
  PREMISES

  	
  40

  
	
  ARTICLE 15.

  	
  DEFAULT

  	
  41

  
	
  ARTICLE 16.

  	
  LANDLORD’S RIGHT
  TO CURE; FEES AND EXPENSES

  	
  45

  
	
  ARTICLE 17.

  	
  NO
  REPRESENTATIONS BY LANDLORD; LANDLORD’S APPROVAL

  	
  46

  
	
  ARTICLE 18.

  	
  END OF TERM

  	
  46

  
	
  ARTICLE 19.

  	
  QUIET ENJOYMENT

  	
  47

  
	
  ARTICLE 20.

  	
  NO SURRENDER; NO
  WAIVER

  	
  47

  
	
  ARTICLE 21.

  	
  WAIVER OF TRIAL
  BY JURY

  	
  48

  
	
  ARTICLE 22.

  	
  NOTICES

  	
  48

  
	
  ARTICLE 23.

  	
  RULES AND
  REGULATIONS

  	
  48

  
	
  ARTICLE 24.

  	
  BROKER

  	
  49

  
	
  ARTICLE 25.

  	
  INDEMNITY

  	
  49

  
	
  ARTICLE 26.

  	
  MISCELLANEOUS

  	
  50

  
	
  ARTICLE 27.

  	
  LETTER OF CREDIT

  	
  54

  
	
  ARTICLE 28.

  	
  OPTION TO EXPAND

  	
  58

  
	
  ARTICLE 29.

  	
  OPTION TO
  TERMINATE

  	
  59

  

 

EXHIBITS

 

	
  Exhibit A

  	
  Floor Plan, Original Premises, Additional Premises
  and Option Space

  
	
  Exhibit A-1

  	
  Land

  
	
  Exhibit B

  	
  Definitions

  
	
  Exhibit C

  	
  Work Agreement

  
	
  Exhibit D

  	
  Cleaning Specifications

  
	
  Exhibit E

  	
  Rules and Regulations

  
	
  Exhibit F

  	
  Form Letter of Credit

  

 

i

 

INDEX OF DEFINED TERMS

 

	
  Term

  	
   

  	
  Location

  
	
   

  	
   

  	
   

  
	
  Additional Rent

  	
   

  	
  Article 1

  
	
  Advance Rent

  	
   

  	
  Section 2.4

  
	
  Adverse Event

  	
   

  	
  Section 26.21

  
	
  Alterations

  	
   

  	
  Section 5.1

  
	
  Area of the Building

  	
   

  	
  Article 1

  
	
  Area of the Premises

  	
   

  	
  Article 1

  
	
  Assessed Valuation

  	
   

  	
  Section 7.1

  
	
  Base Building Systems

  	
   

  	
  Exhibit B

  
	
  Base Building Work

  	
   

  	
  Exhibit C

  
	
  Base Operating Expenses

  	
   

  	
  Section 7.1

  
	
  Base Rate

  	
   

  	
  Exhibit B

  
	
  Base Taxes

  	
   

  	
  Section 7.1

  
	
  Base Year

  	
   

  	
  Article 1

  
	
  Building

  	
   

  	
  Article 1

  
	
  Business Days

  	
   

  	
  Exhibit B

  
	
  Business Hours

  	
   

  	
  Exhibit B

  
	
  Calendar Year

  	
   

  	
  Section 7.1

  
	
  Code

  	
   

  	
  Exhibit B

  
	
  Commencement Date

  	
   

  	
  Article 1

  
	
  Common Areas

  	
   

  	
  Exhibit B

  
	
  Comparable Buildings

  	
   

  	
  Exhibit B

  
	
  Comparison Year

  	
   

  	
  Section 7.1

  
	
  Condominium Documents

  	
   

  	
  Section 9.5

  
	
  Deficiency

  	
   

  	
  Exhibit B

  
	
  Effective Date

  	
   

  	
  Introductory Paragraph

  
	
  Equipment

  	
   

  	
  Section 5.7

  
	
  Excluded Expenses

  	
   

  	
  Exhibit B

  
	
  Expense Estimate

  	
   

  	
  Section 7.3

  
	
  Expiration Date

  	
   

  	
  Article 1

  
	
  Fixed Rent

  	
   

  	
  Article 1

  
	
  Floor Ready Condition

  	
   

  	
  Exhibit C

  
	
  Governmental Authority

  	
   

  	
  Exhibit B

  
	
  Guarantor

  	
   

  	
  Article 1

  
	
  Hazardous Materials

  	
   

  	
  Exhibit B

  
	
  Holidays

  	
   

  	
  Exhibit B

  
	
  HVAC System

  	
   

  	
  Exhibit B

  
	
  ING

  	
   

  	
  Section 9.3

  
	
  Interest Rate

  	
   

  	
  Article 1

  
	
  Land

  	
   

  	
  Article 1

  
	
  Landlord

  	
   

  	
  Introductory Paragraph

  

 

ii

 

	
  Landlord Party(ies)

  	
   

  	
  Exhibit B

  
	
  Landlord’s Address for Notices

  	
   

  	
  Article 1

  
	
  Landlord’s Address for Payment

  	
   

  	
  Article 1

  
	
  Landlord’s Agent

  	
   

  	
  Article 1

  
	
  Landlord’s Contribution

  	
   

  	
  Article 1

  
	
  Lease

  	
   

  	
  Introductory Paragraph

  
	
  Lease Year

  	
   

  	
  Exhibit B

  
	
  Lessor

  	
   

  	
  Exhibit B

  
	
  Letter of Credit

  	
   

  	
  Article 1

  
	
  Losses

  	
   

  	
  Exhibit B

  
	
  Major Alterations

  	
   

  	
  Section 5.1

  
	
  Minor Alterations

  	
   

  	
  Section 5.1

  
	
  Market Sub-Rent

  	
   

  	
  Section 13.3

  
	
  Mortgage(s)

  	
   

  	
  Exhibit B

  
	
  Mortgagee(s)

  	
   

  	
  Exhibit B

  
	
  Operating Expenses

  	
   

  	
  Section 7.1

  
	
  Operator

  	
   

  	
  Section 3.2

  
	
  Parking Allocation

  	
   

  	
  Article 1

  
	
  Parking Facility

  	
   

  	
  Article 1

  
	
  Permitted Alterations

  	
   

  	
  Section 5.1

  
	
  Plans

  	
   

  	
  Section 5.1

  
	
  Permitted Uses

  	
   

  	
  Article 1

  
	
  Premises

  	
   

  	
  Article 1

  
	
  Prohibited Use

  	
   

  	
  Exhibit B

  
	
  Real Property

  	
   

  	
  Article 1

  
	
  Reasonable Efforts

  	
   

  	
  Exhibit C

  
	
  Rent

  	
   

  	
  Article 1

  
	
  Rent Commencement Date

  	
   

  	
  Article 1

  
	
  Requirements

  	
   

  	
  Exhibit B

  
	
  Restoration Payment

  	
   

  	
  Section 11.3

  
	
  Restoration Security

  	
   

  	
  Section 11.3

  
	
  Restorative Work

  	
   

  	
  Section 6.3

  
	
  Retail Component

  	
   

  	
  Article 1

  
	
  Rules and Regulations

  	
   

  	
  Exhibit B

  
	
  Specialty Alterations

  	
   

  	
  Exhibit B

  
	
  Statement

  	
   

  	
  Section 7.1

  
	
  Substantial Completion

  	
   

  	
  Exhibit B

  
	
  Superior Lease(s)

  	
   

  	
  Exhibit B

  
	
  Tax Estimate

  	
   

  	
  Section 7.2

  
	
  Taxes

  	
   

  	
  Section 7.1

  
	
  Tenant

  	
   

  	
  Introductory Paragraph

  
	
  Tenant Fixtures

  	
   

  	
  Section 6.2

  
	
  Tenant Party(ies)

  	
   

  	
  Exhibit B

  
	
  Tenant’s Address for Notices

  	
   

  	
  Article 1

  
	
  Tenant’s Broker

  	
   

  	
  Article 1

  

 

iii

 

	
  Tenant’s Operating Payment

  	
   

  	
  Section 7.3

  
	
  Tenant’s Property

  	
   

  	
  Exhibit B

  
	
  Tenant’s Proportionate Share

  	
   

  	
  Article 1

  
	
  Tenant’s Tax Payment

  	
   

  	
  Section 7.2

  
	
  Term

  	
   

  	
  Article 1

  
	
  Unavoidable Delays

  	
   

  	
  Exhibit B

  

 

iv

 

LEASE

 

THIS
LEASE (this “Lease”) is made as of April 3, 2009
(the “Effective Date”), between
1255 23RD STREET, L.P., a District of Columbia limited
partnership (“Landlord”), and
CONVIO, INC., a Delaware corporation (“Tenant”).

 

Landlord and Tenant
hereby agree as follows:

 

ARTICLE
1

 

BASIC
LEASE PROVISIONS

 

	
  ORIGINAL
  PREMISES

  	
  The portion of the sixth
  (6th) floor of the Building, as more particularly shown on Exhibit A –
  Floor Plan comprising approximately 11,880 square feet

  
	
   

  	
   

  
	
  ADDITIONAL PREMISES

  	
  The portion of the sixth
  (6th) floor of the Building, as more particularly shown on Exhibit A –
  Floor Plan comprising approximately 2,609 square feet, for which Tenant shall
  begin to pay Rent commencing on the first day of the fourth (4th) Lease Year

  
	
   

  	
   

  
	
  PREMISES

  	
  Initially the Original Premises, and beginning on
  the first (1st) day of the fourth (4th) Lease Year (or if earlier, the date elected by
  Tenant pursuant to Section 2.2(d)), the Original Premises plus the
  Additional Premises. If the Option (as defined below) is exercised and the
  Option Space is delivered pursuant to Article 28, then the Option Space
  shall also be considered part of the Premises.

  
	
   

  	
   

  
	
  BUILDING

  	
  The building, fixtures, equipment and other
  improvements and appurtenances now located or hereafter erected, located or
  placed upon the Land and commonly known as 1255 23rd Street, N.W.,
  Washington, D.C.

  
	
   

  	
   

  
	
  PARKING
  FACILITY

  	
  The parking structure, fixtures and other
  improvements and appurtenances now located or hereafter erected, located or
  placed upon the Land

  
	
   

  	
   

  
	
  LAND

  	
  The real property described on Exhibit A-1-Land
  to this Lease

  
	
   

  	
   

  
	
  REAL
  PROPERTY

  	
  The Land, the Building, the Common Areas and the
  Parking Facility

  
	
   

  	
   

  
	
  COMMENCEMENT

  	
   

  
	
  DATE

  	
  August 1, 2009

  

 

1

 

	
  PREMISES
  DELIVERY

  DATE

  	
  The date on
  which Landlord tenders possession of the Original Premises and the Additional
  Premises to Tenant for purposes of Tenant’s Contractors commencing construction
  of Tenant’s Work. Landlord shall tender such possession within five
  (5) Business Days following the Effective Date, and receipt of lender
  approval hereof, the Letter of Credit and all insurance certificates required
  pursuant to Section 11.1(c) hereof.

  
	
   

  	
   

  
	
  RENT

  	
   

  
	
  COMMENCEMENT

  	
   

  
	
  DATE

  	
  August 1, 2009

  
	
   

  	
   

  
	
  EXPIRATION
  DATE

  	
  The last day of the month in which the 120th monthly
  anniversary of the Rent Commencement Date falls (unless the Rent Commencement
  Date is the first (1st) day of a month, in which case the
  Expiration Date shall be the last day of the month immediately preceding the
  120th monthly anniversary of the Rent Commencement
  Date), or the last day of any renewal or extended term, if the Term of this
  Lease is extended in accordance with any express provision hereof; as such
  date might be extended or sooner terminated as provided in this Lease

  
	
   

  	
   

  
	
  TERM

  	
  The period that begins on the Commencement Date and,
  unless this Lease is sooner terminated, ends on the Expiration Date

  
	
   

  	
   

  
	
  PERMITTED
  USES

  	
  Executive and general offices and uses accessory or
  incidental thereto, including computer labs, training facilities and server
  rooms

  
	
   

  	
   

  
	
  BASE
  YEAR

  	
  Calendar year 2009

  

 

2

 

	
  TENANT’S

  	
   

  
	
  PROPORTIONATE

  	
   

  
	
  SHARE

  	
  Until the beginning of the fourth (4th) Lease Year, the percentage equal to a fraction,
  the numerator of which is the Area of the Original Premises and the
  denominator of which is the Area of the Building, with Tenant’s Proportionate
  Share for the Original Premises being 3.54%, subject to adjustment as set
  forth in Section 2.5

  
	
   

  	
   

  
	
   

  	
  Commencing with the fourth (4th) Lease Year, the percentage equal to a fraction,
  the numerator of which is the Area of the Original Premises plus the Area of
  the Additional Premises, and the denominator of which is the Area of the
  Building, with Tenant’s Proportionate Share for the Original Premises and the
  Additional Premises being 4.32%, subject to adjustment as set forth in
  Section 2.5

  
	
   

  	
   

  
	
  AREA
  OF

  	
   

  
	
  THE
  BUILDING

  	
  335,435 rentable square feet

  
	
   

  	
   

  
	
  AREA OF THE

  	
   

  
	
  ORIGINAL PREMISES

  	
  11,880 rentable square feet

  
	
   

  	
   

  
	
  AREA OF
  THE  ADDITIONAL PREMISES 

  	
  2,609 rentable
  square feet 

  
	
   

  	
   

  
	
  FIXED RENT

  	
   

  

 

	
  Lease Year

  	
   

  	
  Fixed Rent per annum per square foot of Area
  of the Premises

  	
   

  
	
  1

  	
   

  	
  $

  	
  47.50

  	
   

  
	
  2

  	
   

  	
  $

  	
  48.69

  	
   

  
	
  3

  	
   

  	
  $

  	
  49.91

  	
   

  
	
  4

  	
   

  	
  $

  	
  51.16

  	
   

  
	
  5

  	
   

  	
  $

  	
  52.44

  	
   

  
	
  6

  	
   

  	
  $

  	
  54.94

  	
   

  
	
  7

  	
   

  	
  $

  	
  56.31

  	
   

  
	
  8

  	
   

  	
  $

  	
  57.72

  	
   

  
	
  9

  	
   

  	
  $

  	
  59.16

  	
   

  
	
  10 through
  Expiration Date

  	
   

  	
  $

  	
  60.64

  	
   

  

 

3

 

	
  ADDITIONAL RENT

  	
  All sums other than Fixed Rent payable by Tenant to
  Landlord under this Lease and any work letter, exhibits, riders or other
  attachments hereto, including Tenant’s Tax Payment, Tenant’s Operating
  Payment, late charges, overtime or excess service charges, supplemental chilled
  water charges, damages, and interest and other costs related to Tenant’s
  failure to perform any of its obligations under this Lease

  
	
   

  	
   

  
	
  RENT

  	
  Fixed Rent and Additional Rent, collectively

  
	
   

  	
   

  
	
  INTEREST RATE

  	
  The lesser of (i) 4% per annum above the
  then-current Base Rate, and (ii) the maximum rate permitted by
  applicable law

  
	
   

  	
   

  
	
  LETTER
  OF CREDIT

  	
  $350,000,
  subject to Section 27.6

  
	
   

  	
   

  
	
  PARKING ALLOCATION

  	
  One (1) parking contracts
  per 1,500 square feet of Area of the Original Premises plus the Area of the
  Additional Premises plus (if, and when, exercised) the area of the Option
  Space) (with such number of parking contracts being rounded to the nearest
  whole number) for use in the Parking Facility

  
	
   

  	
   

  
	
  TENANT’S ADDRESS

  	
   

  
	
  FOR NOTICES

  	
  Convio, Inc.

  
	
   

  	
  11501 Domain Drive

  
	
   

  	
  Suite 200

  
	
   

  	
  Austin, TX 78758

  
	
   

  	
  Attn: Angie McDermott

  
	
   

  	
   

  
	
  LANDLORD’S

  	
   

  
	
  ADDRESS FOR

  	
   

  
	
  NOTICES

  	
  1255 23rd Street, L.P.

  
	
   

  	
  c/o Tishman
  Speyer Properties, L.P.

  
	
   

  	
  45 Rockefeller
  Plaza, 7th Floor

  
	
   

  	
  New York, New
  York 10111

  
	
   

  	
  Attn:  Chief Financial Officer

  

 

4

 

	
   

  	
  Copies to:

  
	
   

  	
   

  
	
   

  	
  1255 23rd Street, L.P.

  
	
   

  	
  c/o Tishman Speyer Properties, L.P.

  
	
   

  	
  1875 Eye Street, NW,
  Suite 300

  
	
   

  	
  Washington, DC 20006

  
	
   

  	
  Attn: Regional Manager
  and Property Manager

  
	
   

  	
   

  
	
   

  	
  and:

  
	
   

  	
   

  
	
   

  	
  1255 23rd Street, L.P.

  
	
   

  	
  c/o Tishman
  Speyer Properties, L.P.

  
	
   

  	
  45 Rockefeller
  Plaza, 7th Floor

  
	
   

  	
  New York, New
  York 10111

  
	
   

  	
  Attn: Chief Legal Officer

  
	
   

  	
   

  
	
  LANDLORD’S ADDRESS

  	
   

  
	
  FOR PAYMENT

  	
   

  
	
   

  	
  1255 23rd Street, L.P.

  
	
   

  	
  P.O. Box 905446

  
	
   

  	
  Charlotte, NC 28290-5446

  
	
   

  	
   

  
	
  ING’S ADDRESS

  	
   

  
	
  FOR NOTICES

  	
   

  
	
   

  	
  ING Real Estate Finance
  (USA) LLC

  
	
   

  	
  230 Park Avenue, 15th Floor

  
	
   

  	
  New York, NY 10169

  
	
   

  	
  Attn: Michael E. Shields,
  Director

  
	
   

  	
   

  
	
   

  	
  Copies to:

  
	
   

  	
   

  
	
   

  	
  ING Real Estate Finance
  (USA) LLC

  
	
   

  	
  230 Park Avenue, 15th Floor

  
	
   

  	
  New York, NY 10169

  
	
   

  	
  Attn: Maria D. Kastanis,
  Senior Director

  
	
   

  	
   

  
	
  TENANT’S BROKER

  	
  The Ezra Company

  
	
   

  	
   

  
	
  LANDLORD’S AGENT

  	
  Tishman Speyer Properties, L.P. or any other person
  designated at any time and from time to time by Landlord as Landlord’s Agent
  and their successors and assigns

  
	
   

  	
   

  
	
  LANDLORD’S

  	
   

  
	
  CONTRIBUTION

  	
  The sum of
  (x) the product of (i) the sum of the Area of the Original Premises
  plus the Area of the Additional Premises

  

 

5

 

	
   

  	
  multiplied by
  (ii) $65.00, plus (y) Tenant’s cost to erect the necessary demising
  wall, not to exceed Nine Thousand Dollars ($9,000.00), plus (if not
  heretofore paid by Landlord) (z) the product of (i) the Area of the
  Original Premises plus the Area of the Additional Premises multiplied by (ii) $0.12
  (which shall be an allowance payable to Tenant’s architect for purposes of
  performing a test fit) (which amount shall be payable to Tenant’s architect
  for the cost associated with a test fit.

  
	
   

  	
   

  
	
  GUARANTOR

  	
  N/A

  

 

All capitalized terms used in this Lease without definition are defined
in Exhibit B-Definitions or in the other exhibits, riders, schedules or
other attachments to this Lease.

 

ARTICLE
2

 

PREMISES,
TERM, RENT

 

Section 2.1
Lease of Premises.  Subject to the terms of this Lease, Landlord
leases to Tenant and Tenant leases from Landlord the Premises for the Term. In
addition, Landlord grants to Tenant the right to use, on a non-exclusive basis
and in common with other tenants, the Common Areas.

 

Section 2.2
Commencement Date.

 

(a)           From
and after the Effective Date, the terms and provisions of this Lease shall be
fully binding on Landlord and Tenant, including prior to the occurrence of the
Commencement Date.

 

(b)           If
Landlord does not tender possession of the Premises or any portion thereof to
Tenant on any specified date, for any reason whatsoever, this Lease shall not
be void or voidable as a result thereof, Landlord shall not be liable for any
damage thereby caused, such failure shall not affect any other obligations of
Tenant hereunder (except as expressly provided in this Section and in the
definition of Premises Delivery Date and Rent Commencement Date), and the Term
shall not commence until Landlord tenders possession of the Premises to Tenant.
Landlord shall be deemed to have tendered possession of the Premises to Tenant
upon the giving of notice by Landlord to Tenant stating that the Premises are
vacant and in the condition required by this Lease. There shall be no
postponement of the Commencement Date and/or the Rent Commencement Date for any
delay in the tender of possession to Tenant which results from any Tenant
Delay.  Notwithstanding the foregoing, in
the event that Landlord does not tender possession of the Premises to Tenant by
the Premises Delivery Date, then the Rent Commencement Date shall be delayed
one day for each day beyond the Premises Delivery Date that Landlord fails to
tender possession of the Premises to Tenant.

 

(c)           Once the Rent Commencement Date has
been determined by Landlord, Landlord shall notify Tenant of the Commencement
Date, the Rent Commencement Date, the

 

6

 

Fixed Rent, the
amount of Landlord’s Contribution, Tenant’s Proportionate Share, the Area of
the Original Premises, the Area of the Additional Premises, the Area of the Building
and the Expiration Date. Pending the delivery of any such notices, each of said
items shall be as specified in the Basic Lease Provisions. Landlord’s failure
to deliver any of the foregoing notices shall not affect the determination of
any of such dates or amounts.

 

(d)           Except for purposes
of building out the Additional Premises, Tenant agrees not to occupy the
Additional Premises as shown on Exhibit A until the first day of the
fourth (4th) Lease Year.  In the event Tenant elects to occupy such area
prior to such date, Tenant shall notify Landlord thereof and pay to Landlord
the sum of Ten Dollars ($10.00) as an early access fee (the “Early Access Fee”).   Notwithstanding Tenant’s
exercise of its right to occupy the Additional Premises before the fourth (4th) Lease Year commences, in no event shall Tenant be
required to pay Rent for the Additional Premises until the fourth (4th) Lease Year commences.

 

Section 2.3
Payment of Rent.  Tenant shall pay to Landlord at Landlord’s
Address for Payment, or at such other place as Landlord shall designate in
writing from time to time, without notice or demand, and except as may be
expressly set forth in this Lease, without any set-off, counterclaim, abatement
or deduction whatsoever, in lawful money of the United States (i) Fixed
Rent in equal monthly installments, in advance, on the first (1st) day of each month during the Term, beginning on the
Rent Commencement Date, and (ii) Additional Rent, at the times and in the
manner set forth in this Lease.

 

Section 2.4
First Month’s Rent.
Tenant shall pay one month’s Fixed Rent upon the execution of this Lease (“Advance Rent”).  If the Rent Commencement Date is on the first
(1st) day of a month, the Advance Rent shall
be credited towards the first (1st)
month’s Fixed Rent payment.  If the Rent
Commencement Date is not the first (1st)
day of a month, then on the Rent Commencement Date Tenant shall pay Fixed Rent
for the period from the Rent Commencement Date through the last day of such
month, and the Advance Rent shall be credited towards Fixed Rent for the next
succeeding calendar month.

 

Section 2.5
Area of Premises and Building. Landlord and Tenant agree that the Area of the
Original Premises, Area of the Additional Premises, and the Area of the
Building set forth in Article 1 shall be conclusive and binding on both
parties regardless of any measurement of the Premises and/or of the Building
after the Effective Date.  The foregoing
notwithstanding, Landlord shall have the right to remeasure the Area of the
Original Premises, Area of the Additional Premises, and the Area of the
Building if, after the date hereof (a) there is a change in the
measurement criteria or methodology under the BOMA Method of Measurement
Standards ANSI Z65.1-1996; or (b) there is a change in the use of the
Building or any portion(s) thereof, such as the conversion of retail space
to office space or office space to Common Area space.  If there is a change in the Area of the
Original Premises, Area of the Additional Premises, and/or the Area of the Building
as aforesaid, such change shall be effective as of the date Landlord provides
Tenant with notice of such change and such change shall apply only to Tenant’s
Proportionate Share, and shall not apply to or result in a change in, inter alia, the Fixed Rent payable by
Tenant under this Lease or any concession or allowance to which Tenant might be
entitled under this Lease that is based upon the Area of the Premises.

 

7

 

Section 2.6
Access. To the
extent Landlord provides Tenant access to any portion of the Premises prior to
the Commencement Date, Tenant shall be bound by and comply with, all of the
terms of this Lease other than the obligation to pay Fixed Rent, Tenant’s Tax
Payment and Tenant’s Operating Payment.

 

ARTICLE 3

USE
AND OCCUPANCY; PARKING

 

Section 3.1            Permitted Uses. Tenant shall not use or occupy the
Premises for any purpose other than for the Permitted Uses.  Tenant shall not use or occupy or permit the
use or occupancy of any part of the Premises in a manner constituting a
Prohibited Use. Tenant, at its expense, shall procure and at all times maintain
and comply with the terms and conditions of all licenses and permits required
for the lawful conduct of the Permitted Uses in the Premises.

 

Section 3.2             Parking Facility.

 

(a)           Except as set forth in this Lease to
the contrary, Landlord shall arrange for and cause the Parking Allocation to be
available to Tenant throughout the Term, the Operator to be working directly
with and directly billing Tenant’s employees for parking contract requests,
assignments, any parking-related charges, etc.

 

(b)           Within
sixty (60) days after the Rent Commencement Date Tenant shall notify Landlord
in writing of Tenant’s desire to obtain all or a specified number of the Parking
Allocation and Tenant shall enter into parking contracts with the Parking
Facility tenant or operator (as applicable, the “Operator”). To
the extent that Tenant fails to execute monthly parking contracts for any
portion of the Parking Allocation within the aforementioned period or if Tenant
subsequently fails to continuously maintain any such parking contracts, Tenant
may obtain all or any portion of the unallocated contracts on no less than
ninety (90) days advance notice to Landlord.

 

(c)           Landlord shall provide, or shall cause the Operator to
provide, 24-hour access to the Parking Facility for each of Tenant’s parking
contracts.

 

(d)           Unless directed in writing by
Landlord to the contrary, Tenant shall be directly responsible to the Operator
for the payment of any and all fees or charges due in connection with the
parking contracts.  The current monthly
charge per contract is $235.00.

 

(e)           Tenant acknowledges that Landlord or the Operator may
temporarily relocate, or specifically designate the location of, Tenant’s
parking spaces from time to time as a result of an emergency or casualty at the
Building. Tenant agrees that it and its employees shall observe reasonable
safety precautions in the use of the Parking Facility and shall at all times
abide by all reasonable rules and regulations promulgated by Landlord or
Operator governing the use of the Parking Facility. Landlord does not assume
any responsibility for any damage or loss to any automobiles parked in the
Parking Facility or to any personal property located therein, or for any injury
sustained by any person in or about the Parking Facility. Except in connection
with a permitted assignment of this Lease or a permitted sublease of the
Premises or a portion thereof

 

8

 

or
the use of parking by Tenant’s customers, clients, visitors and other business
invitees, neither Tenant nor any Tenant employee nor any other party claiming
by, through or under Tenant shall assign, sublet, license or otherwise transfer
or allow the use of any of Tenant’s parking rights under this Lease.

 

(f)            Unless otherwise required by Landlord or the Operator,
Tenant’s parking rights shall be for non-reserved parking spaces. Landlord
reserves the right to require that all or a portion of Tenant’s Parking
Allocation be for tandem, stacked, valet and such other parking arrangements as
Landlord or the Operator shall from time to time deem reasonably necessary for
the Parking Facility.

 

ARTICLE
4

 

CONDITION
OF THE PREMISES

 

Section 4.1            Condition. Tenant has
inspected the Premises and agrees (i) to accept possession of the Premises
in “as is” condition as of the Commencement Date; and (ii) that Landlord
has no obligation to perform any work, supply any materials, incur any expense
(other than to provide Landlord’s Contribution upon the terms set forth in this
Lease) or make any alterations or improvements to prepare the Premises for
Tenant’s occupancy.
Tenant’s occupancy of any part of the Premises for the conduct of its ordinary
business shall be conclusive evidence, as against Tenant, that Tenant has
accepted possession of such part of the Premises in its then-current condition
and that, at the time such possession was taken, the Premises and the Building
were in good and satisfactory condition as required by this Lease and the Work
Agreement.

 

ARTICLE
5

 

ALTERATIONS

 

Section 5.1            Tenant’s Alterations

 

(a)           Tenant shall be
permitted to make Decorative Alterations without Landlord’s consent. Tenant
shall be permitted to make Permitted Alterations with Landlord’s prior consent,
which consent shall not be unreasonably withheld, conditioned or delayed.
Tenant shall not make any Major Alterations without the prior written consent
of Landlord, which consent may be withheld in Landlord’s sole discretion.  This Subsection 5.1(a) shall not apply
to the initial Tenant Improvements to be made at the Premises pursuant to Exhibit C
— Work Agreement.

 

“Alterations” means any
alterations or additions in or about the Premises (including the initial Tenant
Improvements and any future Improvements).

 

“Decorative Alterations”
means minor decorative or cosmetic Permitted Alterations that do not require
the issuance of any permit, such as painting or the installation of wall
coverings or floor coverings.

 

9

 

“Permitted Alterations”
means Alterations that do not consist solely of Decorative Alterations and that
(i) are non-structural, (ii) do not materially and adversely affect
any Base Building Systems, (iii) affect only the Premises and are not
visible from outside of the Premises, and (iv) do not affect the
certificate of occupancy issued for the Building or the Premises.

 

“Major Alterations” means
Alterations that are neither Decorative Alterations nor Permitted Alterations.

 

(b)           Prior to making any
Alterations (other than Decorative Alterations), Tenant, at Tenant’s expense,
shall (i) submit to Landlord for its approval, detailed plans and
specifications (“Plans”) of each
proposed Alteration, and with respect to any Alteration affecting any Base
Building System, evidence that the Alteration has been designed by, or reviewed
and approved by, Landlord’s designated engineer for the affected Base Building
System, (ii) obtain all permits, approvals and certificates required by
any Governmental Authorities, (iii)  furnish to Landlord duplicate
original policies or certificates of worker’s compensation (covering all
persons to be employed by Tenant, and Tenant’s contractors and subcontractors
in connection with such Alteration) and commercial general liability (including
property damage coverage) insurance and Builder’s Risk coverage (as described
in Article 11) all in such form, with such companies, for such periods and
in such amounts as Landlord may reasonably require, naming Landlord, Landlord’s
Agent, any Lessor and any Mortgagee as additional insureds, and (iv) furnish
to Landlord reasonably satisfactory evidence of Tenant’s ability to complete
and to fully pay for such Alterations. Landlord shall have twelve (12) Business
Days after receipt of the Plans within which to approve or disapprove of the
Plans.  If Landlord disapproves any
Plans, Landlord will provide reasonably detailed grounds for such disapproval,
except that Landlord shall not be required to state any grounds for
disapproving any Major Alterations other than identifying the basis for
Landlord’s determination that such Alteration is a Major Alteration. Tenant
shall give Landlord not less than five (5) Business Days’ notice prior to
performing any Decorative Alteration, which notice shall contain a description
of such Decorative Alteration. This Subsection 5.1(b) shall not apply to
the initial Tenant Improvements to be made at the Premises pursuant to Exhibit C-Work
Agreement.

 

(c)           Tenant, at Tenant’s
expense, shall, as and when required, promptly obtain certificates of partial
and final approval of such Alterations required by any Governmental Authority
and shall furnish Landlord with copies thereof, together with “as-built”
drawings for such Alterations (other than Decorative Alterations) prepared on
an AutoCAD Computer Assisted Drafting and Design System (or such other system
or medium as Landlord may reasonably require), using naming conventions issued
by the American Institute of Architects in June, 1990 (or such other
naming conventions as Landlord may reasonably accept) and magnetic computer
media of such record drawings and specifications translated in DFX format or
another format acceptable to Landlord. This Subsection 5.1(c) shall not
apply to the initial Tenant Improvements to be made at the Premises pursuant to
Exhibit C-Work Agreement.

 

(d)           The parties hereby
acknowledge and agree that Landlord’s Contribution is intended to permit Tenant
to finish-out the Original Premises and the Additional Premises, even

 

10

 

though Tenant
might not possess the Additional Premises until the beginning of the fourth (4th) Lease Year.

 

Section 5.2            Manner and Quality of Alterations. 
All Alterations shall be performed (a) in a good and workmanlike
manner and free from material defects, (b) except in connection with
Decorative Alterations (for which no Plans will be required), substantially in
accordance with the Plans, and by contractors reasonably approved by Landlord,
and (c) in compliance with all Requirements, the terms of this Lease and
all construction procedures and regulations then reasonably prescribed by
Landlord. All materials and equipment shall be of first quality and at least
equal to the applicable standards for the Building then reasonably established
by Landlord, and no such materials or equipment (other than Tenant’s Property)
shall be subject to any lien or other encumbrance.

 

Section 5.3            Removal of Tenant’s Property. On or before the Expiration Date,
Tenant, at Tenant’s expense, shall remove Tenant’s Property from the Premises.
Unless otherwise directed by Landlord, on or before the Expiration Date,
Tenant, at Tenant’s expense, shall remove all Specialty Alterations (as defined
in Exhibit B-Definitions). Tenant, at Tenant’s expense, shall repair and
restore in a good and workmanlike manner any damage to the Premises and/or the
Building caused by Tenant’s removal of Tenant’s Property and any Alterations or
(if required by Landlord) by the closing of any slab penetrations. If Tenant
fails to so remove any of Tenant’s Property and/or any Alterations that Tenant
is required to remove, the same shall be deemed abandoned and Landlord may
remove and dispose of same, and repair and restore any damage caused thereby,
at Tenant’s expense, and without accountability to Tenant. All Alterations that
Landlord does not require Tenant to remove as aforesaid shall become Landlord’s
property upon the expiration or earlier termination of this Lease.  Landlord shall advise Tenant of any
restoration requirements for any Alterations at the time Landlord approves
Tenant’s plans for such Alterations.

 

Section 5.4            Mechanic’s Liens. 
Within twenty (20) days after Tenant’s receipt of notice thereof,
Tenant, at Tenant’s expense, shall discharge (by payment, filing the bond
required by law or otherwise in accordance with law) any lien or charge
recorded or filed against the Real Property in connection with any work done or
claimed to have been done by or on behalf of, or materials furnished or claimed
to have been furnished to, Tenant.

 

Section 5.5            Labor Relations. Tenant shall not employ, or permit the
employment of, any contractor, subcontractor, supplier, mechanic or laborer or
permit any materials to be delivered to or used at the Premises if, in Landlord’s
reasonable judgment, such employment, delivery or use will interfere or cause
any conflict with (a) other contractors, subcontractors, suppliers,
mechanics or laborers engaged by Landlord, Tenant or others in the
construction, maintenance or operation of the Building or construction of
tenant improvements or (b) Landlord’s operation of the Building or the
conduct of business therein (e.g.,
protesters picketing or otherwise demonstrating on the sidewalk outside of the Building).
If such interference or conflict occurs and continues for more than five (5) Business
Days after notice from Landlord, upon Landlord’s further request, Tenant shall
cause all contractors, subcontractors, suppliers, mechanics or laborer’s
mechanics or laborers causing such interference or conflict to leave the
Building immediately or arrange for other relief reasonably acceptable to
Landlord.

 

11

 

Section 5.6            Tenant’s Costs. Tenant shall pay Landlord within ten (10) Business
Days following its receipt of written notice for the following, which notice
shall be accompanied by Landlord’s reasonable documentation of the same:  (a) all actual reasonable out-of-pocket
costs incurred by Landlord in connection with the review of any Alterations
plans, (b) the time actually and reasonably spent by Landlord’s personnel
to operate elevators or otherwise to facilitate Tenant’s Alterations, which
time shall be charged at the hourly rate that Landlord normally charges for
such personnel’s services, and (c) the time actually and reasonably spent
by Landlord’s construction manager protecting Landlord’s interest (taking into
account the nature of the Alterations) in connection with Tenant’s Alterations,
which time shall be charged at the hourly rate that Landlord normally charges
for Landlord’s construction manager’s services. If Tenant makes Alterations
exceeding $25,000 other than (a) the initial Tenant Improvements to be
made at the Premises pursuant to Exhibit C — Work Agreement and (b) Tenant
Improvements to the Option Space, then Tenant shall pay to Landlord, upon
demand, an administrative fee in an amount equal to three percent (3%) of the
total cost of such Alterations. At Landlord’s request, Tenant shall deliver to
Landlord reasonable supporting documentation evidencing the hard and soft costs
incurred by Tenant in designing and constructing any Alterations.

 

Section 5.7            Tenant’s Equipment. 
Tenant shall provide notice to Landlord prior to moving any heavy
machinery, heavy equipment, freight, bulky matter or fixtures (collectively, “Equipment”) into or out of the Building and
shall pay to Landlord any reasonable costs actually incurred by Landlord in
connection therewith.  If such Equipment
requires special handling, Tenant agrees (a) to employ only persons
holding all necessary licenses to perform such work, (b) all work
performed in connection therewith shall comply with all applicable Requirements
and (c) such work shall be done only during hours reasonably designated by
Landlord.

 

Section 5.8            Legal Compliance. The approval of Alteration Plans, or
consent by Landlord to the making of any Alterations, does not constitute
Landlord’s representation that such Alteration Plans or Alterations comply with
any Requirements.  Landlord shall not be
liable to Tenant or any other party in connection with Landlord’s approval of
any Alteration Plans, or Landlord’s consent to Tenant’s performing any
Alterations. If any Alterations made by or on behalf of Tenant, require
Landlord to make any alterations or improvements to any part of the Building in
order to comply with any Requirements, Tenant shall pay all actual reasonable
out-of-pocket costs and expenses actually incurred by Landlord, without markup,
in connection with such alterations or improvements.

 

Section 5.9            Floor Load. 
Tenant shall not place a load upon any floor of the Premises that
exceeds 80 pounds per square foot “live-load” or 20 pounds per square foot “dead-load.”  Landlord reserves the right to reasonably
designate the position of all Equipment which Tenant wishes to place within the
Premises, and to place reasonable limitations on the weight thereof.

 

12

 

ARTICLE
6

 

REPAIRS

 

Section 6.1            Landlord’s Repair and Maintenance. Landlord shall operate, maintain and,
except as provided in Section 6.2 hereof, make all necessary repairs (both
structural and nonstructural) to (i) the Base Building Systems, (ii) the
Common Areas, in conformance with standards applicable to Comparable Buildings,
and (iii) the structural components of the Building including, but not
limited to, the exterior, including exterior doors and windows, and, load
bearing elements, foundations, roof and roof membrane.

 

Section 6.2            Tenant’s Repair and Maintenance.  Tenant shall promptly, at Tenant’s
expense and in compliance with Article  5, make all nonstructural
repairs to the Premises and the fixtures, equipment and appurtenances therein
(including all electrical and plumbing systems in and exclusively serving the
Premises from the point of connection to the Base Building Systems and all
Specialty Alterations; but excluding repairs, maintenance and replacement of
the Building Shell Work exterior windows, atrium windows, exterior and Common
Areas, Common Area Tenant signs, the base Building heating, ventilation and air
conditioning systems located in the Premises, the base Building life safety
systems located in the Premises and non-Specialty Alteration lightbulbs, lamps
and ballasts located in the Premises, which shall be repaired, maintained and
replaced as necessary by Landlord and, to the extent applicable, the cost of
such repairs, maintenance and replacements will be included in Operating Expenses)
(collectively, “Tenant Fixtures”)
, as and when needed to preserve the Premises in good working order and
condition, except for reasonable wear and tear, damage by casualty or
condemnation and damage for which Tenant is not responsible.  Subject to Section 11.2, all damage to
the Building or to any portion thereof or to any Tenant Fixtures requiring
structural or nonstructural repair caused by or resulting from any act,
omission, neglect or improper conduct of a Tenant Party or the moving of Tenant’s
Property or Equipment into, within or out of the Premises by a Tenant Party,
shall be repaired at Tenant’s expense by Tenant or by Landlord in accordance
with the allocation of repair responsibilities set forth above. All Tenant
repairs shall be of good quality utilizing new construction materials and in
compliance with Article 5.

 

Section 6.3            Restorative Work.  Landlord reserves the right to make all changes,
alterations, additions, improvements, repairs or replacements to the Building
and Base Building Systems, including changing the arrangement or location of
entrances or passageways, doors and doorways, corridors, elevators, stairs,
toilets or other Common Areas (collectively, “Restorative
Work”), as Landlord reasonably deems necessary or desirable, and to
take all materials into the Premises required for the performance of such
Restorative Work, provided that (a) the level of any Building service
shall not decrease in any material respect from the level required of Landlord
in this Lease as a result thereof (other than reasonably required temporary
changes in the level of such services during the performance of any such
Restorative Work) and (b) Tenant is not deprived of reasonable access to
the Premises or the Parking Facility. 
Landlord shall use reasonable efforts to minimize interference with
Tenant’s use and occupancy of the Premises during the performance of such
Restorative Work. There shall be no Rent abatement or allowance to Tenant for a
diminution of rental value, no actual or constructive eviction of Tenant, in
whole or in part, no relief from any of Tenant’s other obligations under this
Lease, and

 

13

 

no liability on the part
of Landlord by reason of inconvenience, annoyance or injury to business arising
from Landlord, Tenant or others performing, or failing to perform, any
Restorative Work.  Notwithstanding the
foregoing to the contrary, if any Restorative Work (a) continues for more
than five (5) consecutive Business Days or ten (10) Business Days in
any thirty (30)-day period and (b) renders any portion of the Premises
untenantable (and Tenant in fact ceases use of such portion), then following
those periods, and until said portion of the Premises is tenantable, Rent shall
abate in proportion to the amount of the Premises so rendered untenantable.

 

ARTICLE
7

 

TAXES
AND OPERATING EXPENSES

 

Section 7.1 Definitions.

 

(a)           “Assessed
Valuation” shall mean the amount for which the Real Property is
assessed by any applicable Governmental Authority for the purpose of imposition
of Taxes.

 

(b)           “Base Operating Expenses”
shall mean the Operating Expenses for the Base Year.

 

(c)           “Base Taxes”
shall mean the Taxes payable on account of the Base Year.

 

(d)           “Calendar
Year” shall mean each calendar year, all or any  portion of which falls during the Term.

 

(e)           “Comparison Year”
shall mean any Calendar Year commencing subsequent to the Base Year.

 

(f)            “Operating
Expenses” shall mean the aggregate of all costs and expenses paid or
incurred by or on behalf of Landlord in connection with the ownership,
operation, repair and maintenance of the Real Property, including, but not
limited to, the following:

 

(i)            any capital improvement made after the Base Year if
such capital improvement either (A) is reasonably intended to result in a
reduction in Operating Expenses (e.g.,
a labor-saving improvement) provided the amount included in Operating Expenses
in the any Comparison Year shall not exceed an amount equal to the savings
reasonably determined or anticipated by Landlord to result from the
installation and operation of such improvement, and/or (B) is made during
any Comparison Year to comply with Requirements, exclusive of any costs
incurred to remedy any Requirements violation existing on the Commencement
Date. Such capital improvements shall be amortized (with interest at the Base
Rate) on a straight-line basis over such period as Landlord shall reasonably
determine, and the amount included in Operating Expenses in any Comparison Year
shall be equal to the annual amortized amount;

 

(ii)         costs of maintaining and operating (including the
reasonable rental value thereof, but not for more than 2,000 square feet of
rentable area) the management and engineering offices, if any, for the
Building;

 

14

 

(iii)        costs incurred by Landlord in establishing, equipping,
maintaining, repairing and operating (including the reasonable rental value
thereof) any Building amenities or services (exclusive of any fitness or health
center) intended by Landlord for the general benefit of tenants of the Building
such as any concierge service (whether located at the Building or made
available to Building tenants from an off-site location);

 

(iv)        costs incurred by Landlord in maintaining, repairing
and operating (including the reasonable rental value thereof) any Building
fitness or health center (provided such center does not exceed 3,500 square
feet of rentable area), but not the cost of equipping such fitness center or
purchasing replacement equipment therefor, except in the case of replacing
broken or worn out equipment the cost of which shall be amortized over the
useful life of such equipment, without interest (and except further that if any
equipment is leased, the lease payments therefor may be included in Operating
Expenses);

 

(v)         costs of maintaining the sidewalks, landscaping and
other improvements adjacent to the Real Property including, without limitation,
costs of cleaning, removing snow and spreading salt; feeding trees; removing
trash from tree boxes; and adding mulch to tree boxes;

 

(vi)        costs incurred for Building Parking Facility
utilities, elevators, insurance, cleaning, restriping, HVAC and security;

 

(vii)       Common Area utility costs and Base Building System
utility costs;

 

(viii)      costs of all insurance (including any terrorism
insurance) maintained by Landlord in connection with the Real Property and/or
Landlord’s equipment, fixtures and personal property used in connection
therewith; and

 

(ix)           a property management fee in the amount
of three percent (3%) of gross rents received by Landlord from the Building,
plus reimbursement for actual reasonable reimbursables for out-of-pocket
expenditures incurred under the management agreement.

 

Except as might be
expressly set forth in this Lease to the contrary, Operating Expenses shall be
calculated in accordance with customary practices employed by other comparable
owners of Comparable Buildings. Landlord shall not seek to capture (or actually
capture) more than 100% of Operating Expenses. Operating Expenses shall not
include any Excluded Expenses.

 

If during all or part of
the Base Year or any Comparison Year, Landlord does not furnish any particular
item of work or service (which would otherwise constitute an Operating Expense)
to any leasable portion of the Building and the costs of such item  constitutes an Operating Expense and the cost
varies with the Building’s occupancy level or if any tenant of the Building
does not normally use a specific Building area or improvement (e.g., a first (1st)
floor retail tenant with an exterior premises entrance door does not normally
use the Building’s passenger elevators), then, for purposes of computing
Operating Expenses for such period, the amount included in Operating Expenses
for such period shall be increased by an amount equal to the costs that
Landlord reasonably determines would have been incurred during such period if
Landlord had furnished such item of work or service to such portion of the
Building or if all

 

15

 

tenants of the Building
had normally used such Building area or improvement; provided, however, if the
result of such computation would be to have Landlord expenditures for such
items included in Tenant’s Operating Payment exceed the actual cost of such
items, then the foregoing amount shall be reduced by such excess.  In determining the amount of Operating
Expenses for the Base Year or any Comparison Year, if less than ninety-five
percent (95%) of the Building rentable area is occupied by tenants at any time
during the Base Year or any such Comparison Year, then Operating Expenses which
vary with occupancy shall be determined for the Base Year or such Comparison
Year to be an amount equal to the like expenses which would normally be
expected to be incurred had such occupancy been ninety-five percent (95%)
throughout the Base Year or such Comparison Year; provided, however, if the
result of such computation would be to have Landlord’s expenditure recoveries
for such items exceed the actual cost of such items, then the foregoing amount
shall be reduced by such excess.

 

(g)           “Statement”
shall mean a statement setting forth in reasonable detail a comparison of (i) the
Base Taxes and the Taxes for an applicable Comparison Year, together with the
amount of Tenant’s Tax Payment for such Comparison Year, or (ii) the Base
Operating Expenses and the Operating Expenses payable for any Comparison Year,
together with the amount of Tenant’s Operating Payment for such Comparison
Year.

 

(h)           “Taxes”
shall mean (i) all real estate taxes, assessments, sewer and water rents,
Business Improvement District assessments and charges and all other
governmental levies, impositions or charges, whether general, special,
ordinary, extraordinary, foreseen or unforeseen, which may be assessed, levied
or imposed upon all or any part of the Real Property or in connection with the
use thereof (including any transit, personal property, sales, rental, use,
gross receipts, or occupancy taxes, vault rental and other taxes and
assessments), and (ii) all expenses (including reasonable attorneys’ fees
and disbursements and experts’ and other witnesses’ fees) incurred in
contesting any of the foregoing or the Assessed Valuation of the Real Property
(but such expenses will not be included in Base Taxes if incurred during the
Base Year).  Taxes shall not include (x) interest
or penalties incurred by Landlord as a result of Landlord’s late payment of
Taxes, (y) franchise, transfer, gift, inheritance, estate or net income
taxes imposed upon Landlord, or (z) deed transfer, transfer of economic
interests or recordation taxes.   For
purposes hereof, “Taxes” for any Calendar Year shall be deemed to be the Taxes
which are assessed, levied or imposed for such Calendar Year regardless of when
due or paid.  If any Taxes are assessed
on a fiscal year (rather than a Calendar Year), Landlord shall have the right
to equitably allocate such Taxes on a Calendar Year basis.  If Landlord elects to pay any assessment in
annual installments, then (i) such assessment shall be deemed to have been
so divided and to be payable in the maximum number of installments permitted by
law, and (ii) there shall be deemed included in Taxes for each Comparison
Year the installments of such assessment becoming payable during such Comparison
Year, together with interest payable during such Comparison Year on such
installments and on all installments thereafter becoming due as provided by
law, all as if such assessment had been so divided.  If at any time the methods of taxation
prevailing on the Effective Date shall be altered so that in lieu of or as an
addition to the whole or any part of Taxes, there shall be assessed, levied or
imposed (1) a tax, assessment, levy, imposition or charge based on the
income or rents received from the Real Property whether or not wholly or
partially as a capital levy or otherwise, (2) a tax, assessment, levy,
imposition or charge measured by or based in whole or in part upon all or any
part of the Real Property and imposed upon Landlord,

 

16

 

(3) a license fee
measured by the rents, or (4) any other tax, assessment, levy, imposition,
charge or license fee however described or imposed, including business
improvement district impositions and business, professional and occupational
license fees, then all such taxes, assessments, levies, impositions, charges or
license fees or the part thereof so measured or based shall be deemed to be
Taxes.

 

Section 7.2            Tenant’s Tax Payment.

 

(a)           If the Taxes payable for any Comparison
Year exceed the Base Taxes, Tenant shall pay to Landlord Tenant’s Proportionate
Share of such excess (“Tenant’s Tax Payment”).
Notwithstanding the foregoing, Tenant shall have no obligation to pay Tenant’s
Tax Payment until the first (1st)
anniversary of the Rent Commencement Date. For each Comparison Year, Landlord
shall furnish to Tenant a written statement setting forth Landlord’s reasonable
estimate of Tenant’s Tax Payment for such Comparison Year (the “Tax Estimate”).  Tenant shall pay to Landlord on the first (1st)  day of each
month during such Comparison Year an amount equal to 1/12 of the Tax Estimate
for such Comparison Year.  If Landlord
furnishes a Tax Estimate for a Comparison Year subsequent to the commencement
thereof, then (i) until the first (1st)
day of the month following the month in which the Tax Estimate is furnished to
Tenant, Tenant shall pay to Landlord on the first (1st)
day of each month an amount equal to the monthly sum payable by Tenant to
Landlord under this Section during the last month of the preceding
Comparison Year (if any), (ii) promptly after the Tax Estimate is
furnished to Tenant or together therewith, Landlord shall give notice to Tenant
stating whether the installments of Tenant’s Tax Estimate previously made for
such Comparison Year were greater or less than the installments of Tenant’s Tax
Estimate to be made for such Comparison Year in accordance with the Tax
Estimate, and (x) if there shall be a deficiency, Tenant shall pay the
amount thereof within ten (10) Business Days after demand therefor, or (y) if
there shall have been an overpayment, Landlord shall credit the amount thereof
against subsequent payments of Rent due hereunder, and (iii) on the first
(1st) day of the month following the month in
which the Tax Estimate is furnished to Tenant, and on the first (1st) day of each month thereafter throughout the
remainder of such Comparison Year, Tenant shall pay to Landlord an amount equal
to 1/12 of the Tax Estimate.

 

(b)           As soon as reasonably practicable after
Landlord has determined the Taxes for a Comparison Year, Landlord shall furnish
to Tenant a Statement for such Comparison Year. 
If the Statement shows that the sums paid by Tenant under Section 7.2(a) exceeded
the actual amount of Tenant’s Tax Payment for such Comparison Year, Landlord
shall credit the amount of such excess against subsequent payments of Rent due
hereunder or, if the Term has expired, Landlord shall promptly pay such amount
to Tenant (net of any sums then owed by Tenant to Landlord).  If the Statement for such Comparison Year
shows that the sums so paid by Tenant were less than Tenant’s Tax Payment for
such Comparison Year, Tenant shall pay the amount of such deficiency within
twenty (20) Business Days after delivery of the Statement to Tenant.

 

(c)           Only Landlord may institute proceedings
to reduce the Assessed Valuation of the Real Property and the filings of any
such proceeding by Tenant without Landlord’s consent shall constitute an Event
of Default.  If the Taxes payable for the
Base Year are reduced, the Base Taxes shall be correspondingly revised, the
Additional Rent previously paid or payable on

 

17

 

account of Tenant’s Tax
Payment hereunder for all Comparison Years shall be recomputed on the basis of
such reduction, and Tenant shall pay to Landlord within ten (10) Business
Days after being billed therefor, any deficiency between the amount of such
Additional Rent previously computed and paid by Tenant to Landlord, and the
amount due as a result of such recomputations. If Landlord receives a refund of
Taxes for any Comparison Year, Landlord shall credit against subsequent
payments of Rent due hereunder, an amount equal to Tenant’s Proportionate Share
of the refund, net of any expenses incurred by Landlord in achieving such
refund, which amount shall not exceed Tenant’s Tax Payment paid for such
Comparison Year or, if the Term has expired, Landlord shall promptly pay such
amount to Tenant (net of any sums then owed by Tenant to Landlord).  Landlord shall not be obligated to file any
application or institute any proceeding seeking a reduction in Taxes or the
Assessed Valuation.  The benefit of any
exemption or abatement relating to all or any part of the Real Property shall
accrue solely to the benefit of Landlord and Taxes shall be computed without
taking into account any such exemption or abatement.

 

(d)           Tenant shall be responsible for any
applicable occupancy or rent tax now in effect or hereafter enacted and, if
such tax is payable by Landlord, Tenant shall promptly pay such amounts to
Landlord, upon Landlord’s demand.

 

(e)           Tenant shall be obligated to make Tenant’s
Tax Payment regardless of whether Tenant may be exempt from the payment of any
Taxes as the result of any reduction, abatement or exemption from Taxes granted
or agreed to by any Governmental Authority, or by reason of Tenant’s diplomatic
or other tax-exempt status.

 

Section 7.3          Tenant’s Operating Payment.

 

(a)           If the Operating Expenses payable for any
Comparison Year exceed the Base Operating Expenses, Tenant shall pay to
Landlord Tenant’s Proportionate Share of such excess (“Tenant’s Operating Payment”).  Notwithstanding the foregoing, Tenant shall
have no obligation to pay Tenant’s Operating Payment until the first (1st) anniversary of the Rent Commencement Date. For each
Comparison Year, Landlord shall furnish to Tenant a written statement setting
forth Landlord’s reasonable estimate of Tenant’s Operating Payment for such
Comparison Year (the “Expense Estimate”).  Tenant shall pay to Landlord on the first (1st) day of each month during such Comparison Year an
amount equal to 1/12 of the Expense Estimate. 
If Landlord furnishes an Expense Estimate for a Comparison Year
subsequent to the commencement thereof, then (i) until the first (1st)  day of the
month following the month in which the Expense Estimate is furnished to Tenant,
Tenant shall pay to Landlord on the first (1st)  day of each month an amount equal to the
monthly sum payable by Tenant to Landlord under this Section during the
last month of the preceding Comparison Year (if any), (ii) promptly after
the Expense Estimate is furnished to Tenant or together therewith, Landlord
shall give notice to Tenant stating whether the installments of Tenant’s
Operating Payment previously made for such Comparison Year were greater or less
than the installments of Tenant’s Operating Payment to be made for such
Comparison Year in accordance with the Expense Estimate, and (x) if there
shall be a deficiency, Tenant shall pay the amount thereof within ten (10) Business
Days after demand therefor, or (y) if there shall have been an
overpayment, Landlord shall credit the amount thereof against subsequent
payments of Rent due hereunder, and (iii) on the first (1st)  day of the
month

 

18

 

following the month in
which the Expense Estimate is furnished to Tenant, and on the first (1st)  day of each
month thereafter throughout the remainder of such Comparison Year, Tenant shall
pay to Landlord an amount equal to 1/12 of Tenant’s Operating Payment shown on
the Expense Estimate.

 

(b)           On or before May 1st of each
Comparison Year, Landlord shall furnish to Tenant a Statement for the
immediately preceding Comparison Year. 
If the Statement shows that the sums paid by Tenant under Section 7.3(a) exceeded
the actual amount of Tenant’s Operating Payment for such Comparison Year,
Landlord shall credit the amount of such excess against subsequent payments of
Rent due hereunder or, if the Term has expired, Landlord shall promptly pay
such amount to Tenant (net of any sums then owed by Tenant to Landlord).  If the Statement shows that the sums so paid
by Tenant were less than Tenant’s Operating Payment for such Comparison Year,
Tenant shall pay the amount of such deficiency within ten (10) Business
Days after Tenant’s receipt of the Statement.

 

Section 7.4            Non-Waiver; Disputes.

 

(a)           Landlord’s failure to render any
Statement on a timely basis with respect to any Comparison Year shall not
prejudice Landlord’s right to thereafter render a Statement with respect to
such Comparison Year or any subsequent Comparison Year, nor shall the rendering
of a Statement prejudice Landlord’s right to thereafter render a corrected
Statement for that Comparison Year.

 

(b)           Each Statement sent to
Tenant shall be conclusively binding upon Tenant unless (i) Tenant pays to
Landlord when due the amount set forth in such Statement, without prejudice to
Tenant’s right to dispute such Statement, and (ii) within one (1) year
after such Statement is sent, Tenant sends a notice to Landlord requesting a
review of Landlord’s books and records applicable to such Statement, in which
case Tenant and its accountants shall have the right to review (and, if
necessary, to copy) Landlord’s books and records applicable to such Statement
during Landlord’s business hours, but otherwise at a time mutually acceptable
to Landlord and Tenant. With respect to each Statement, Landlord will maintain
its applicable books and records for a period of at least three (3) years after
such Statement is delivered to Tenant and thereafter during the pendency of any
review thereof by Tenant pursuant to the terms of this Lease.  Tenant agrees that Tenant will not employ, in
connection with any dispute under this Lease with respect to a Statement, any
person or entity who is to be compensated in whole or in part, on a contingency
fee basis.  If Tenant timely objects to a
Statement and the parties do not resolve any dispute as to the correctness of
such Statement within thirty (30) days following such notice of objection,
either party may refer the issues raised to a nationally recognized public
accounting firm selected by Landlord and reasonably acceptable to Tenant, and
the decision of such accountants shall be conclusively binding upon Landlord
and Tenant.  In connection therewith,
Tenant, such accountants and all other persons to whom Tenant gives any of the
information obtained in connection with such review shall execute and deliver
to Landlord a confidentiality agreement, in form and substance reasonably
satisfactory to Landlord, whereby such parties agree not to disclose to any
third party any of the information obtained in connection with such
review.  Tenant shall pay the fees and
expenses relating to such procedure, unless such accountants determine that
Landlord overstated Taxes or Operating Expenses by more than three

 

19

 

percent
(3%) for such Comparison Year, in which case Landlord shall pay such fees and
expenses of the accounting firm selected by Landlord and Tenant as set forth
above.  If the accountant determines that
any overcharge was made on a Statement, then Landlord shall pay Tenant within
ten (10) Business Days following such determination, any amount
overcharged by Landlord.  If the
accountant determines that any undercharge was made on a Statement, then Tenant
shall pay Landlord within ten (10) Business Days following such
determination any amount undercharged by Landlord.

 

Section 7.5            Proration. If the Rent Commencement Date is not January 1st, the Additional Rent for the applicable Calendar Year
shall be apportioned on the basis of the number of days in the year from the
Rent Commencement Date to the following December 31.  If the Expiration Date occurs on a date other
than December 31st, any Additional Rent under this Article for
the Calendar Year in which such Expiration Date occurs shall be apportioned on
the basis of the number of days in the period from January 1st to the
Expiration Date.  Upon the expiration or
earlier termination of this Lease, any Additional Rent under this Article shall
be adjusted or paid within thirty (30) days after submission of the Statement
for the last Calendar Year.

 

Section 7.6            No Reduction in Rent.   If Operating Expenses or Taxes for any Comparison Year
are less than the Base Operating Expenses or the Base Taxes (as applicable),
such occurrence shall not entitle Tenant to a refund or any other payment nor
shall it result in a reduction in the Rent payable under this Lease.

 

ARTICLE
8

 

REQUIREMENTS
OF LAW

 

Section 8.1            Compliance with Requirements.

 

(a)           Subject to the provisions of Section 6.2
regarding repairs, Tenant, at Tenant’s expense, shall comply with all
Requirements applicable to the Premises; provided, however, that Tenant shall
not be obligated to comply with any Requirements requiring any structural
alterations to the Building unless the application of such Requirements arises
from (i) the specific manner and nature of Tenant’s use or occupancy of
the Premises, as distinct from general office use, (ii) Alterations made
by Tenant, or (iii) a breach by Tenant of any provisions of this
Lease.  Any such repairs or alterations
shall be made at Tenant’s expense by Tenant (1) in compliance with Article 5
if such repairs or alterations are nonstructural and do not affect any Base
Building System, or (2) by Landlord if such repairs or alterations are
structural or affect any Base Building System. 
If Tenant obtains knowledge of any failure to comply with any
Requirements applicable to the Premises, Tenant shall give Landlord prompt
notice thereof.

 

(b)           Tenant shall not cause or permit (i) any
Hazardous Materials to be brought onto the Real Property by any Tenant Party, (ii) the
storage or use of Hazardous Materials by a Tenant Party in any manner other
than in full compliance with any Requirements, or (iii) the escape,
disposal or release of any Hazardous Materials within or in the vicinity of the
Building by any Tenant Party.  Nothing
herein shall be deemed to prevent Tenant’s use of any Hazardous Materials
customarily used in the ordinary course of office work or in the construction
of

 

20

 

leasehold
improvements; provided that, in any such case, such use is in accordance with
all Requirements. Tenant shall be responsible, at Tenant’s expense, for all
matters directly or indirectly based on, or arising or resulting from the
presence of Hazardous Materials at the Real Property which is caused or
permitted by a Tenant Party.  Tenant
shall provide to Landlord copies of all communications received by Tenant with
respect to any Requirements relating to Hazardous Materials, and/or any claims
made in connection therewith.  Landlord
or its agents may perform environmental inspections of the Premises at any time
upon reasonable prior notice (or without notice if Landlord believes an
emergency exists).

 

(c)           Landlord shall comply with (or cause to
be complied with) all Requirements applicable to the Real Property which are
not the obligation of Tenant as expressly set forth herein and which are not
the obligation of any other tenant of the Building (except to the extent such
non-compliance by such other tenants materially and adversely affects Tenant or
its rights under this Lease).

 

(d)           Tenant shall not cause or permit any
action or condition that would (i) invalidate or conflict with Landlord’s
insurance policies, (ii) violate applicable rules, regulations and
guidelines of the Fire Department or be inconsistent with the recommendations
of any of the issuers of such policies or any other authority having
jurisdiction over the Building, (iii) cause an increase in the premiums of
fire insurance for the Building over that payable with respect to Comparable
Buildings, or (iv) result in Landlord’s insurance companies’ refusing to
insure the Building or any property therein in amounts and against risks as
reasonably determined by Landlord.  If
fire insurance premiums increase as a result of Tenant’s failure to comply with
the provisions of this Section, Tenant shall promptly cure such failure and
shall reimburse Landlord for the increased fire insurance premiums paid by
Landlord as a result of such failure by Tenant.

 

Section 8.2            Fire
and Life Safety.  Any modifications to
the Building fire alarm and life safety systems required by Tenant or completed
as part of any Alterations shall be at Tenant’s expense, subject to the
application of Landlord’s Contribution pursuant to the terms of the Exhibit C-Work
Agreement. If the Fire Insurance Rating Organization or any Governmental
Authority or any of Landlord’s insurers requires or recommends any
modifications and/or alterations be made or any additional equipment be
supplied in connection with the sprinkler system or fire alarm and life-safety
system serving the Building by reason of Tenant’s use of the Premises or any
portion thereof for purposes other than for the Permitted Use, any Alterations
performed by Tenant or the location of the partitions, Tenant’s Property, or
other contents of the Premises, Landlord (to the extent outside of the
Premises) or Tenant (to the extent within the Premises) shall make such
modifications and/or Alterations, and supply such additional equipment, in
either case at Tenant’s expense.

 

21

 

ARTICLE 9

 

SUBORDINATION

 

Section 9.1            Subordination and Attornment.

 

(a)           This Lease is subject and subordinate to
all Mortgages and Superior Leases, and, at the request of any Mortgagee or
Lessor, Tenant shall attorn to such Mortgagee or Lessor, its successors in
interest or any purchaser in a foreclosure sale.

 

(b)           If a Lessor or Mortgagee or any other
person or entity shall succeed to the rights of Landlord under this Lease,
whether through possession or foreclosure action or the delivery of a new lease
or deed, then at the request of the successor landlord and upon such successor
landlord’s written agreement to accept Tenant’s attornment, to not disturb
Tenant in its possession under the Lease, and to recognize Tenant’s interest
under this Lease, Tenant shall be deemed to have attorned to and recognized
such successor landlord as Landlord under this Lease.  The provisions of this Section are
self-operative and require no further instruments to give effect hereto;
provided, however, that Tenant shall promptly execute and deliver any
instrument that such successor landlord may reasonably request (i) evidencing
such attornment, (ii) setting forth the terms and conditions of Tenant’s
tenancy, and (iii) containing such other terms and conditions as may be
required by such Mortgagee or Lessor, provided such terms and conditions do not
increase the Rent, materially increase Tenant’s obligations or materially and
adversely affect Tenant’s rights under this Lease.  Upon such attornment this Lease shall
continue in full force and effect as a direct lease between such successor
landlord and Tenant upon all of the terms, conditions and covenants set forth
in this Lease except that such successor landlord shall not be:

 

(i)            liable for any act or omission of Landlord (except to
the extent such act or omission continues beyond the date when such successor
landlord succeeds to Landlord’s interest and Tenant gives notice of such act or
omission);

 

(ii)           subject to any defense, claim, counterclaim, set-off
or offset which Tenant may have against Landlord;

 

(iii)          bound by any prepayment of more than one month’s Rent
to any prior landlord;

 

(iv)          bound by any obligation to make any payment to Tenant
which was required to be made prior to the time such successor landlord
succeeded to Landlord’s interest;

 

(v)           bound by any obligation to perform any work or to make
improvements to the Premises except for (x) repairs and maintenance
required to be made by Landlord under this Lease, and (y) repairs to the
Premises as a result of damage by fire or other casualty or a partial
condemnation pursuant to the provisions of this Lease, but only to the extent
that such repairs can reasonably be made from the net proceeds of any insurance
or condemnation awards, respectively, actually made available to such successor
landlord;

 

22

 

(vi)          Reserved;

 

(vii)         liable for the repayment of any security deposit or
surrender of any letter of credit, unless and until such security deposit
actually is paid or such letter of credit is actually delivered to such
successor landlord; or

 

(viii)        liable for the payment of any unfunded tenant
improvement allowance, refurbishment allowance or similar obligation.

 

(c)           Tenant shall from time to time within ten
(10) days of request from Landlord execute and deliver any documents or
instruments that may be reasonably required by any Mortgagee or Lessor to
confirm any subordination.

 

(d)           Landlord shall use reasonable efforts to
obtain a Subordination, Non-Disturbance and Attornment Agreement for Tenant
from its current Mortgagee and any future Mortgage on such Mortgagee’s standard
form.

 

Section 9.2            Mortgage or Superior Lease Defaults. 
Any Mortgagee may elect that this Lease shall have priority over the
Mortgage and, upon notification to Tenant by such Mortgagee, this Lease shall
be deemed to have priority over such Mortgage, regardless of the date of this
Lease.  In connection with any financing
of the Real Property, Tenant shall consent to any reasonable modifications of
this Lease requested by any lending institution, provided such modifications do
not increase the Rent, increase the obligations, or otherwise affect the
rights, of Tenant under this Lease.

 

Section 9.3            Tenant’s Termination Right. 
As long as any Superior Lease or Mortgage exists, Tenant shall not seek
to terminate this Lease by reason of any act or omission of Landlord until (a) Tenant
shall have given notice of such act or omission to all Lessors and/or
Mortgagees provided that Landlord has designated such Lessors and/or Mortgagees
in writing by notice from Landlord to Tenant, and (b) a reasonable period
of time, but not less than thirty (30) days, shall have elapsed following the
giving of notice of such default and the expiration of any applicable notice or
grace periods (unless such act or omission is not capable of being remedied
within a reasonable period of time), during which period such Lessors and/or
Mortgagees shall have the right, but not the obligation, to remedy such act or
omission and thereafter diligently proceed to so remedy such act or omission.  If any Lessor or Mortgagee elects to remedy
such act or omission of Landlord, Tenant shall not seek to terminate this Lease
so long as such Lessor or Mortgagee is proceeding with reasonable diligence to
effect such remedy.  Tenant hereby
acknowledges and agrees that Landlord has designated ING Real Estate Finance
(USA) LLC (“ING”) as a Mortgagee and that
Tenant shall deliver all notices required to be delivered to a Mortgagee under
this Lease to ING at ING’s Address for Notices set forth in Article 1.

 

Section 9.4            Provisions. 
The provisions of this Article shall (a) inure to the benefit
of Landlord, any future owner of the Building or the Real Property, Lessor or
Mortgagee and any sublessor thereof and (b) apply notwithstanding that, as
a matter of law, this Lease may terminate upon the termination of any such
Superior Lease or Mortgage.

 

23

 

Section 9.5            Future Condominium Declaration. 
This Lease
and Tenant’s rights hereunder are and will be subject and subordinate to any
condominium declaration, by-laws and other instruments (collectively, the “Condominium Documents”) which may be
recorded in order to subject the Building to a condominium form of ownership
pursuant to the laws of the State, provided that the Condominium Documents do
not by their terms increase the Rent, materially increase Tenant’s non-Rent
obligations or materially and adversely affect Tenant’s rights under this
Lease.  At Landlord’s request, and
subject to the foregoing proviso, Tenant will execute and deliver to Landlord
an amendment of this Lease confirming such subordination and modifying this
Lease to conform to such condominium regime.

 

ARTICLE
10

 

SERVICES

 

Section 10.1         Electricity. Subject to any Requirements or any
applicable public utility rules or regulations governing energy
consumption, Landlord shall make or cause to be made, customary arrangements
with utility companies and/or other suppliers of electricity to furnish
electric current to the Premises for Tenant’s use in accordance with the
standards to which the Base Building Systems have been designed. If Landlord
reasonably determines by the use of an electrical consumption survey or by
other reasonable means that Tenant is actually using electric current
(including overhead fluorescent fixtures) in excess of 1.0 kilowatt hours per
square foot of usable area in the Premises per month, as determined on an
annualized basis, or 3.5 watts per useable square foot in the Premises of
demand load (“Excess Electrical Usage”),
then Landlord shall have the right to charge Tenant an amount equal to Landlord’s
reasonable estimate of Tenant’s Excess Electrical Usage, and shall have the
further right to install a separate electric current meter, submeter or check
meter in the Premises (a “Meter”) to
measure the amount of electric current consumed in the Premises.  The cost of such Meter, special conduits,
wiring and panels needed in connection therewith and the installation,
maintenance and repair thereof shall be paid by Tenant.  Tenant shall pay to Landlord, from time to time,
but no more frequently than monthly, for its Excess Electrical Usage at the
Premises, plus Landlord’s charge equal to ten percent (10%) of Tenant’s Excess
Electrical Usage for Landlord’s costs of maintaining, repairing and reading
such Meter.  The rate to be paid by
Tenant for Metered electricity shall include any taxes or other charges in
connection therewith.

 

Section 10.2         Excess Electricity. 
Tenant shall at all times comply with the rules and regulations of
the utility company supplying electricity to the Building.  Tenant shall not use any electrical equipment
which, in Landlord’s reasonable judgment, would exceed the capacity of the
electrical equipment serving the Premises or which interferes with the
electrical service to other tenants of the Building.  If Landlord reasonably determines that Tenant’s
electrical requirements necessitate installation of any additional risers,
feeders or other electrical distribution equipment (collectively, “Electrical Equipment”), or if Tenant
provides Landlord with evidence reasonably satisfactory to Landlord of Tenant’s
need for excess electricity and requests that additional Electrical Equipment
be installed, Landlord shall, at Tenant’s expense, install such additional
Electrical Equipment, provided that Landlord reasonably determines that (a) such
installation is practicable and necessary, (b) such additional Electrical
Equipment is permissible under applicable Requirements, and (c) the
installation of such Electrical Equipment will not cause

 

24

 

permanent damage
to the Building or the Premises, cause or create a hazardous condition, entail
excessive or unreasonable alterations, interfere with or limit electrical usage
by other tenants or occupants of the Building or exceed the limits of the
switchgear or other facilities serving the Building, or require power in excess
of that available from the utility company serving the Building.

 

Section 10.3         Elevators. 
Landlord shall provide passenger elevator service for the Premises 24
hours per day, 7 days per week; provided, however, Landlord may limit passenger
elevator service during non-Business Hours. 
Landlord shall provide at least one freight elevator service for the
Premises upon Tenant’s prior request, on a non-exclusive “first come, first
serve” basis with other Building tenants, on all Business Days during such
reasonable hours and for such reasonable charge as Landlord establishes from
time to time.

 

Section 10.4         Heating, Ventilation and Air
Conditioning.  Landlord shall furnish to the Premises during
Business Hours heating, ventilation and air-conditioning (“HVAC”) in accordance with the standards to
which the Base Building Systems have been designed.  Landlord shall have access to all
air-cooling, fan, ventilating and machine rooms and electrical closets and all
other mechanical installations of Landlord (collectively, “Mechanical Installations”), and Tenant
shall not construct partitions or other obstructions which may interfere with
Landlord’s access thereto or the moving of Landlord’s equipment to and from the
Mechanical Installations.  No Tenant
Party shall at any time enter the Mechanical Installations or tamper with,
adjust, or otherwise affect such Mechanical Installations.  Landlord shall not be responsible if the HVAC
System fails to provide cooled or heated air, as the case may be, to the
Premises in accordance with the standards to which the Base Building Systems
have been designed by reason of (i) any equipment installed by, for or on
behalf of Tenant, which has an electrical load in excess of the average
electrical load and human occupancy factors for the HVAC System as designed, or
(ii) any rearrangement of partitioning or other Alterations made or
performed by, for or on behalf of Tenant. Tenant shall install, if missing,
blinds or shades on all windows, which blinds and shades shall be subject to
Landlord’s reasonable approval, and shall keep operable windows in the Premises
closed, and lower the blinds when necessary because of the sun’s position, whenever
the HVAC System is in operation or as and when required by any
Requirement.  Tenant shall cooperate with
Landlord and shall abide by the rules and regulations which Landlord may
reasonably prescribe for the proper functioning and protection of the HVAC
System.

 

Section 10.5         Supplemental Heating, Ventilation and
Air Conditioning.
If the Premises or any portion thereof is at any time served by any
supplemental heating, ventilation and air conditioning unit(s) that taps
into the base Building HVAC System condenser water loop (whether one or more,
but exclusive of any units that are part of the base Building HVAC System, the “Supplemental HVAC Units”), Tenant shall pay
Landlord within thirty (30) days
after Landlord gives Tenant an invoice therefor, (i) a one-time fee of
$1,000 per ton for each Supplemental HVAC Unit for tapping into the base
Building HVAC System condenser water loop; and (ii) on a monthly basis, a
charge of $10.00 per ton for each Supplemental HVAC Unit.

 

Section 10.6         Overtime HVAC. The Fixed Rent does not include any
charge to Tenant for the furnishing of HVAC to the Premises during non-Business
Hours (“Overtime Periods”).

 

25

 

If Tenant desires
HVAC services during Overtime Periods, Tenant shall be able to request such
overtime as needed by contacting the Building Manager and requesting Overtime
HVAC for a specified time period.  If
Landlord furnishes HVAC service during Overtime Periods, Tenant shall pay to
Landlord the cost thereof at Landlord’s then established rate for such service
in the Building.   The current rate is
$125 per hour.

 

Section 10.7         Cleaning. 
Landlord shall cause the Premises (excluding any portions thereof used
for the storage, preparation, service or consumption of food or beverages; as
an exhibition area or classroom; for storage; as a shipping room, mail room or
for similar purposes; for private bathrooms, showers or exercise facilities; as
a trading floor; primarily for operation of computer, data processing, reproduction,
duplicating or similar equipment; and portions of the Premises that include any
improvements or property that require non-standard office cleaning supplies,
materials, procedures, labor or service, such as paintings and other works of
art) to be cleaned, substantially in accordance with the standards set forth in
Exhibit D-Cleaning Specifications. Landlord reserves the right to modify
such standards from time-to-time provided that Landlord’s cleaning standards
shall be reasonably consistent with those provided in Comparable Buildings. Any
areas of the Premises which Landlord is not required to clean hereunder or
which require additional cleaning shall be cleaned, at Tenant’s expense, by
Landlord’s cleaning contractor for such additional charge as Landlord’s
cleaning contractor might require from time to time.  Landlord’s cleaning contractor and its
employees shall have access to the Premises at all times except between 8:00 a.m.
and 5:30 p.m. on weekdays which are not Holidays.

 

Section 10.8         Water.  Landlord shall
provide water in the core lavatories, drinking fountains and janitor’s closets
on each floor of the Building.  If Tenant
requires water  in excess of that used by
a normal office building tenant of similar size using its premises for normal office
use, Tenant shall pay for the cost of bringing water to the Premises and
Landlord may install a meter to measure the water.  Tenant shall pay the cost of such
installation, and for all maintenance, repairs and replacements thereto, and
for the reasonable charges of Landlord for the water consumed.

 

Section 10.9         Refuse Removal. 
Landlord shall provide refuse removal services at the Building for
ordinary office refuse and rubbish. 
Tenant shall pay to Landlord, Landlord’s reasonable charge for such removal
to the extent that the refuse generated by Tenant exceeds the refuse
customarily generated by general office tenants.  Tenant shall not dispose of any refuse in the
Common Areas, and if Tenant does so, Tenant shall be liable for Landlord’s
reasonable charge for such removal. Tenant shall, at Tenant’s expense, comply
with all present and future Requirements regarding the collection, sorting,
separation, and recycling of trash.  Each
separately sorted category of trash shall be placed in separate receptacles as
directed by Landlord.

 

Section 10.10       Directory and Suite Entry
Signage.  Landlord shall list Tenant on at least one of
the Building directories located in the first (1st)
floor lobbies of the Building.  The Building directory listing
Tenant’s name will be shared with other Building tenants and space on the
directory shall be equitably apportioned amongst the tenants. Landlord shall,
at Landlord’s expense, install Building standard suite entry signage at the
principal suite entry location at the

 

26

 

Premises.  At Tenant’s request, at any time during the
Term, Landlord will design and install a Building-standard, wall-mounted suite
entry sign on the wall directly outside the main suite entrance in the elevator
lobby of the floor on which the Premises are located (the “Additional
Sign”).  The basic design of
the Additional Sign shall be based on the Building-standard signage, however it
may incorporate a color reproduction of Tenant’s logo, including font and
name.  The exact location of the sign
shall be as shown on Exhibit A.  The
dimensions of the Additional Sign shall not exceed two (2) feet in width
and ten (10) inches in height, and will be wall-mounted.  The Additional Sign shall be installed by
Landlord at Tenant’s sole cost and expense.

 

Section 10.11  Tenant Access to Premises. 
Tenant shall have access to the Premises 24 hours a day, 7 days a
week.  Outside of Business Hours,
Building and floor access will be monitored by an electronic card or key security
and access system or any such successor system installed and maintained by
Landlord.  Tenant shall be responsible
for access control to the Premises at Tenant’s expense.

 

Section 10.12
Telecommunications.  If Tenant requests that Landlord grant access to the
Building to a telecommunications service provider designated by Tenant for
purposes of providing telecommunications services to Tenant, Landlord shall use
its reasonable good faith efforts to respond to such request within thirty (30)
days. Tenant acknowledges that nothing set forth in this Section shall
impose any affirmative obligation on Landlord to grant such request and that
Landlord, in its sole discretion, shall have the right to determine which
telecommunications service providers shall have access to Building facilities.

 

Section 10.13 Service
Interruptions.  Landlord reserves the right to suspend any
service when necessary, by reason of Unavoidable Delays, accidents or
emergencies, or for Restorative Work which, in Landlord’s reasonable judgment,
are necessary or appropriate until such Unavoidable Delay, accident or
emergency shall cease or such Restorative Work is completed and Landlord shall
not be liable for any interruption, curtailment or failure to supply services.  Landlord shall use reasonable efforts to
minimize interference with Tenant’s use and occupancy of the Premises as a
result of any such interruption, curtailment or failure or defect in any such
service, or change in the supply, character and/or quantity of, electrical service,
and to restore any such services, remedy such situation and minimize any
interference with Tenant’s business.  The
exercise of any such right or the occurrence of any such failure by Landlord
shall not constitute an actual or constructive eviction, in whole or in part,
entitle Tenant to any compensation, abatement or diminution of Rent, relieve
Tenant from any of its obligations under this Lease, or impose any liability
upon Landlord or any Indemnified Party by reason of inconvenience to Tenant, or
interruption of Tenant’s business, or otherwise.  Landlord shall not be liable in any way to
Tenant for any failure, defect or interruption of, or change in the supply,
character and/or quantity of electrical service furnished to the Premises for
any reason except if attributable to the gross negligence or willful misconduct
of Landlord. In the event of a casualty or a Taking, the applicable provisions
of this Lease shall prevail over the rent abatement provisions of this Section.  The foregoing notwithstanding, if any failure
or stoppage of Landlord’s services under this Lease (i) renders the
Premises or any portion thereof untenantable for the normal conduct of Tenant’s
business in all or a portion of the Premises and Tenant has ceased using the
Premises or the affected portion thereof; (ii) was not caused by Tenant,
its employees, invitees or agents; and (iii) extends for a period longer
than three (3) consecutive Business Days (or, in the event of

 

27

 

Unavoidable Delay,
ten (10) Business Days), then provided no Event of Default exists, Tenant’s
obligation to pay Fixed Rent, Tenant’s Tax Payment and Tenant’s Operating
Payment for the affected portion of the Premises shall be abated beginning on
the third (3rd) Business Day  (or, in the event of Unavoidable Delay, the
tenth (10th) Business Day) following the date the
aforementioned conditions are met and shall continue with respect to the
Premises or the affected portion thereof (as applicable) until the conditions
described in clause (i) no longer exist.

 

Section 10.14 Service Additions
and Omissions.  Except with respect to the services that
Landlord otherwise expressly agrees to provide under this Lease, Landlord shall
have the right to add, modify and/or curtail any Building services as Landlord
determines appropriate from time to time in Landlord’s sole discretion.

 

ARTICLE
11

 

INSURANCE;
PROPERTY LOSS OR DAMAGE

 

Section 11.1
Tenant’s Insurance.

 

(a)           Tenant, at Tenant’s expense, shall obtain and keep in
full force and effect during the Term:

 

(i)            a policy of commercial general liability insurance on
an occurrence basis (utilizing then current ISO forms or equivalent) against
claims for contractual liability, personal injury, bodily injury, death and/or
property damage occurring in or about the Building, under which Tenant is named
as the insured and Landlord, Landlord’s Agent and any Lessors and any
Mortgagees whose names have been furnished to Tenant are named as additional
insureds (the “Insured Parties”).
Such insurance shall provide primary coverage without contribution from any
other insurance carried by or for the benefit of the Insured Parties.  The minimum limits of liability provided in
any combination by a commercial general liability policy and excess liability
or umbrella policy applying exclusively to the Premises shall be a combined
single limit with respect to each occurrence and in the aggregate in an amount
of not less than $5,000,000; provided, however, that Landlord shall retain the
right to require Tenant to increase such coverage from time to time to that
amount of insurance which in Landlord’s reasonable judgment is then being
customarily required by landlords for similar office space in Comparable
Buildings.  The deductible or self
insured retention for such policy shall not exceed $10,000;

 

(ii)           insurance against loss or damage by fire, and such
other risks and hazards as are insurable under then available standard forms of
“Special Form Causes of Loss” or “All Risk” property insurance policies,
insuring Tenant’s Property and all Alterations and improvements to the Premises
(including the initial Tenant Improvements) to the extent such Alterations and
improvements exceed the cost of the improvements typically performed in
connection with the initial occupancy of tenants in the Building (“Building Standard Installations”), for the
full insurable value thereof or replacement cost thereof, having a deductible
amount, if any, not in excess of $25,000;

 

(iii)          prior
to and during the performance of any Alterations (other than Minor
Alterations), until completion thereof, Builder’s Risk insurance on an “all
risk” basis and

 

28

 

on a completed value form including a Permission to Complete and Occupy
endorsement, for full replacement value covering the interest of Landlord and
Tenant (and their respective contractors and subcontractors) in all work
incorporated in the Building and all materials and equipment in or about the
Premises, Workers’ Compensation and Employer’s Liability Insurance (covering
all persons to be employed by Tenant, and Tenant’s contractors and
subcontractors in connection with such Alterations) and commercial general
liability (including property damage coverage) insurance, all in such form, for
such periods, in such amounts and with such companies as Landlord may
reasonably require, naming Landlord, Landlord’s Agent and any Mortgagee (of
which Tenant has been given notice) as additional insureds to all policies
except the Workers’ Compensation and Employer’s Liability Insurance policy;

 

(iv)          Workers’ Compensation Insurance, as required by law
and Employers Liability Insurance in the amount of not less than $500,000;

 

(v)           Business Interruption/Rental Insurance; and

 

(vi)          such other insurance in such amounts as the Insured
Parties may reasonably require from time to time, and which are customarily
required by landlords for similar office space in Comparable Buildings.

 

(b)           All insurance required to be carried by Tenant (i) shall
contain a provision that (x) no act or omission of Tenant shall affect or
limit the obligation of the insurance company to pay the amount of any loss
sustained, and (y) shall be noncancellable and/or no material change in
coverage shall be made thereto unless the Insured Parties receive thirty (30)
days’ prior notice of the same, by certified mail, return receipt requested,
and (ii) shall be effected under valid and enforceable policies issued by
reputable insurers permitted to do business in the State and rated in Best’s
Key Rating Guide, or any successor thereto as having a “Best’s Rating” of “A-”
or better and a “Financial Size Category” of at least “X” or better or, if such
ratings are not then in effect, the equivalent thereof or such other financial
rating as Landlord may at any time reasonably consider appropriate.

 

(c)           On or prior to the Commencement Date, Tenant shall
deliver to Landlord appropriate policies of insurance, including evidence of
waivers of subrogation required to be carried pursuant to this Article and
that the Insured Parties are named as additional insureds (the  “Policies”).
Evidence of each renewal or replacement of the Policies shall be delivered by
Tenant to Landlord at least ten (10) days prior to the expiration of the
Policies. In lieu of the Policies, Tenant may deliver to Landlord a
certification from Tenant’s insurance company (on the form currently designated
“Acord 27” (Evidence of Property Insurance) and “Acord 25-S” (Certificate of
Liability Insurance), or the equivalent, provided that attached thereto is an
endorsement to Tenant’s commercial general liability policy naming the Insured
Parties as additional insureds) which shall be binding on Tenant’s insurance
company, and which shall expressly provide that such certification (i) conveys
to the Insured Parties all the rights and privileges afforded under the
Policies as primary insurance, and (ii) contains an unconditional
obligation of the insurance company to advise all Insured Parties in writing by
certified mail, return receipt requested, at least thirty (30) days in advance
of any termination or change to the Policies that would affect the interest of
any of the Insured Parties.

 

29

 

Section 11.2         Waiver of Subrogation. Landlord and Tenant shall each procure
an appropriate clause in or endorsement to any property insurance covering the
Real Property and personal property, fixtures and equipment located therein,
wherein the insurer waives subrogation or consents to a waiver of right of recovery,
and Landlord and Tenant agree not to make any claim against, or seek to recover
from, the other for any loss or damage to its property or the property of
others resulting from fire or other hazards to the extent covered (or would
have been covered if the party had obtained and maintained the insurance it was
required to carry under this Lease) by the property insurance that was required
to be carried by that party under the terms of this Lease. Tenant acknowledges
that Landlord shall not carry insurance on, and shall not be responsible for, (i) damage
to any Above Building Standard Installations, (ii) Tenant’s Property, and (iii) any
loss suffered by Tenant due to interruption of Tenant’s business.

 

Section 11.3         Restoration.

 

(a)           If the Premises are damaged by fire or other casualty,
or if the Building is damaged such that Tenant is deprived of reasonable access
to the Premises, the damage shall be repaired by Landlord, to substantially the
condition of the Premises prior to the damage, subject to the provisions of any
Mortgage or Superior Lease and only to the extent that such repairs can
reasonably be made from the net proceeds of any insurance actually received by
Landlord, but Landlord shall have no obligation to repair or restore (i) Tenant’s
Property or (ii) except as provided in Section 11.3(b), any
Alterations or improvements to the Premises, to the extent (but only to the
extent) such Alterations or improvements exceed Building Standard Installations
(“Above Building Standard Installations”).
 So long as Tenant is not in default
beyond applicable grace or notice provisions in the payment or performance of
its obligations under this Section, and provided Tenant timely delivers to
Landlord either Tenant’s Restoration Payment (as hereinafter defined) or the
Restoration Security (as hereinafter defined) or Tenant expressly waives any
obligation of Landlord to repair or restore any of Tenant’s Above Building
Standard Installations, then until the restoration of the Premises is
Substantially Completed or would have been Substantially Completed but for
Tenant Delay, Fixed Rent, Tenant’s Tax Payment and Tenant’s Operating Payment
shall be reduced in the proportion by which the area of the part of the
Premises which is not usable (or accessible ) and is not used by Tenant bears
to the total area of the Premises.

 

(b)           As a condition precedent to Landlord’s
obligations to repair or restore any Above Building Standard Installations,
Tenant shall (i) pay to Landlord upon demand a sum (“Tenant’s Restoration Payment”) equal to the
amount, if any, by which (A) the cost, as reasonably estimated by a
reputable independent contractor designated by Landlord, of repairing and
restoring all Alterations and Tenant Improvements in the Premises to their
condition prior to the damage, exceeds (B) the cost of restoring the
Premises with Building Standard Installations, or (ii) furnish to Landlord
security (the “Restoration Security”)
in form and amount reasonably acceptable to Landlord to secure Tenant’s
obligation to pay all costs in excess of restoring the Premises with Building
Standard Installations.  If Tenant fails
to deliver to Landlord either (1) Tenant’s Restoration Payment or the
Restoration Security, as applicable, or (2) a waiver by Tenant, in form
reasonably satisfactory to Landlord, of all of Landlord’s obligations to repair
or restore any of the Above Building Standard Installations, in either case
within ten (10) Business

 

30

 

Days after
Landlord’s demand therefor, Landlord shall have no obligation to restore any
Above Building Standard Installations and Tenant’s abatement of Fixed Rent,
Tenant’s Tax Payment and Tenant’s Operating Payment shall cease when the
restoration of the Premises (other than any Above Building Standard
Installations) is Substantially Complete.

 

Section 11.4         Landlord’s Termination Right. 
Notwithstanding anything to the contrary contained in Section 11.3,
if the Premises are totally damaged or are rendered wholly untenantable, or if
the Building shall be so damaged that, in the reasonable opinion of Landlord’s
architect and engineers the substantial alteration, demolition, or
reconstruction of the Building required to return it to a tenantable state
(whether or not the Premises are so damaged or rendered untenantable) will take
more than 12 months, then  Landlord may,
not later than sixty (60) days following the date of the damage, terminate this
Lease by written notice to Tenant, provided that if the Premises are not
materially damaged, Landlord may not terminate this Lease unless Landlord
similarly terminates (as a result of such damage) the leases of other tenants
in the Building aggregating at least fifty percent (50%) of the portion of the
Building occupied for office purposes immediately prior to such damage.  If this Lease is so terminated, (a) the
Term shall expire upon the thirtieth (30th)
day after such notice is given, (b) Tenant shall vacate the Premises and
surrender the same to Landlord, (c) Tenant’s liability for Rent shall
cease as of the date of the damage, and (d) any prepaid Rent for any
period after the date of the damage shall be promptly refunded by Landlord to
Tenant.

 

Section 11.5         Tenant’s Termination Right. 
If the Premises are totally damaged and are thereby rendered wholly
untenantable, or if the Building shall be so damaged that Tenant is deprived of
reasonable access to the Premises, and if Landlord elects to restore the
Premises, Landlord shall, within sixty (60) days following the date of the
damage, cause a contractor or architect selected by Landlord to give notice
(the “Restoration Notice”) to
Tenant of the date by which such contractor or architect estimates the
restoration of the Premises (excluding any Above Building Standard
Installations) shall be Substantially Completed. If such date, as set forth in
the Restoration Notice, is more than twelve (12) months from the date of such
damage, then Tenant shall have the right to terminate this Lease by giving
notice (the “Termination Notice”)
to Landlord not later than thirty (30) days following delivery of the
Restoration Notice to Tenant. If Tenant delivers a Termination Notice, this
Lease shall be deemed to have terminated as of the date of the giving of the
Termination Notice, in the manner set forth in the second sentence of Section 11.4.

 

Section 11.6         Final 18 Months. 
Notwithstanding anything to the contrary in this Article, if any damage
during the final eighteen (18) months of the Term renders the Premises wholly
untenantable, either Landlord or Tenant may terminate this Lease by notice to
the other party within thirty (30) days after the occurrence of such damage and
this Lease shall expire on the thirtieth (30th)
day after the date of such notice.  For
purposes of this Section, the Premises shall be deemed wholly untenantable if
Tenant shall be precluded from using more than fifty percent (50%) of the
Premises for the conduct of its business and Tenant’s inability to so use the
Premises is reasonably expected to continue for more than ninety (90) days.

 

Section 11.7         Landlord’s Liability. 
Any Building employee to whom any property shall be entrusted by or on
behalf of Tenant shall be deemed to be acting as Tenant’s agent with

 

31

 

respect to such
property and neither Landlord nor its agents shall be liable for any damage to
such property, or for the loss of or damage to any property of Tenant by theft
or otherwise.  None of the Insured
Parties shall be liable for any injury or damage to persons or property or
interruption of Tenant’s business resulting from fire or other casualty, any
damage caused by other tenants or persons in the Building or Parking Facility
or by construction of any private, public or quasi-public work, or any latent
defect in the Premises or in the Building or Parking Facility (except that
Landlord shall be required to repair the same to the extent provided in Article 6).  No penalty shall accrue for delays which may
arise by reason of adjustment of fire insurance on the part of Landlord or
Tenant, or for any Unavoidable Delays arising from any repair or restoration of
any portion of the Building, provided that Landlord shall use reasonable
efforts to minimize interference with Tenant’s use and occupancy of the
Premises during the performance of any such repair or restoration.

 

ARTICLE
12

 

EMINENT
DOMAIN

 

Section 12.1         Taking.

 

(a)           Total Taking. 
If all or substantially all of the Real Property, the Building or the
Premises shall be acquired or condemned for any public or quasi-public purpose
(a “Taking”), this Lease shall
terminate and the Term shall end as of the date of the vesting of title and
Rent shall be prorated and adjusted as of such date.

 

(b)           Partial Taking. 
Upon a Taking of only a part of the Real Property, the Building or the
Premises then, except as hereinafter provided in this Article, this Lease shall
continue in full force and effect, provided that from and after the date of the
vesting of title, Fixed Rent and Tenant’s Proportionate Share shall be modified
to reflect the reduction of the Premises and/or the Building as a result of
such Taking.

 

(c)           Landlord’s Termination
Right.  Whether or not the Premises are affected,
Landlord may, by notice to Tenant, within sixty (60) days following the date
upon which Landlord receives notice of the Taking of all or a portion of the
Real Property, the Building or the Premises, terminate this Lease, provided
that Landlord elects to terminate (as a result of such taking) leases
(including this Lease) affecting at least fifty percent (50%) of the portion of
the Building occupied for office purposes immediately prior to such taking.

 

(d)           Tenant’s Termination
Right.  If the part of the Real Property so Taken
contains more than twenty percent (20%) of the total area of the Premises
occupied by Tenant immediately prior to such Taking, or if, by reason of such
Taking, Tenant no longer has reasonable means of access to the Premises or
equivalent parking rights, Tenant may terminate this Lease by notice to
Landlord given within thirty (30) days following the date upon which Tenant is
given notice of such Taking.  If Tenant
so notifies Landlord, this Lease shall end and expire upon the thirtieth (30th) day following the giving of such notice.  If a part of the Premises shall be so Taken
and this Lease is not terminated in accordance with this Section, Landlord,
without being required to spend more than it collects as an award, shall,
subject to the provisions of any Mortgage or Superior Lease, restore that part
of the Premises not so Taken to a self-

 

32

 

contained rental unit
substantially equivalent (with respect to character, quality, appearance and
services) to that which existed immediately prior to such Taking, excluding
Tenant’s Property and Above Building Standard Installations.

 

(e)           Apportionment of Rent. 
Upon any termination of this Lease pursuant to the provisions of this
Article, Rent shall be apportioned as of, and shall be paid or refunded up to
and including, the date of such termination.

 

(f)            Notice to Tenant of Taking. 
Notwithstanding anything to the contrary in this Lease, Landlord agrees
to deliver to Tenant written notice of any Taking within ten (10) Business
Days following Landlord’s receipt of notice of the same.

 

Section 12.2         Awards. 
Upon any Taking, Landlord shall receive the entire award for any such
Taking, and Tenant shall have no claim against Landlord or the condemning
authority for the value of any unexpired portion of the Term or Tenant’s
Alterations; and Tenant hereby assigns to Landlord all of its right in and to
such award.  Nothing contained in this Article shall
be deemed to prevent Tenant from making a separate claim in any condemnation
proceedings for the then value of any Tenant’s Property or Above Building
Standard Installations included in such Taking and for any moving expenses,
provided any such award is in addition to, and does not result in a reduction
of, the award made to Landlord.

 

Section 12.3         Temporary Taking. 
If all or any part of the Premises is Taken temporarily during the Term
for any public or quasi-public use or purpose, Tenant shall give prompt notice
to Landlord and the Term shall not be reduced or affected in any way and Tenant
shall continue to pay all Rent payable by Tenant without reduction or abatement
and to perform all of its other obligations under this Lease, except to the
extent prevented from doing so by the condemning authority, and Tenant shall be
entitled to receive any award or payment from the condemning authority for such
use.

 

ARTICLE
13

 

ASSIGNMENT
AND SUBLETTING

 

Section 13.1         Consent Requirements.

 

(a)           Except as expressly set forth herein,
Tenant shall not assign, mortgage, pledge, encumber, or otherwise transfer this
Lease, whether by operation of law or otherwise, and shall not sublet, or
permit, or suffer the Premises or any part thereof to be used or occupied by
others (whether for desk space, mailing privileges or otherwise), without
Landlord’s prior consent in each instance, which consent shall not be
unreasonably withheld or delayed as provided in Section 13.3.

 

Any assignment, sublease, mortgage, pledge, encumbrance or transfer in
contravention of the provisions of this Article shall be void and shall
constitute an Event of Default.

 

(b)           If, without Landlord’s consent (when
required), this Lease is assigned, or any part of the Premises is sublet or
occupied by anyone other than Tenant or this Lease is

 

33

 

encumbered (by
operation of law or otherwise), Landlord may collect rent from the assignee,
subtenant or occupant, and apply the net amount collected to the Rent herein
reserved.  No such collection shall be
deemed a waiver of the provisions of this Article, an acceptance of the
assignee, subtenant or occupant as tenant, or a release of Tenant from the
performance of Tenant’s covenants hereunder, and in all cases Tenant shall
remain fully liable for its obligations under this Lease.

 

(c)           Landlord’s consent to any assignment or
subletting shall not relieve Tenant from the obligation to obtain Landlord’s
consent to any further assignment or subletting.  In no event shall any permitted subtenant
assign or encumber its sublease or further sublet any portion of its sublet
space, or otherwise suffer or permit any portion of the sublet space to be used
or occupied by others, except as provided in this Lease.

 

Section 13.2         Tenant’s Notice. 
If Tenant desires to assign this Lease or sublet all or any portion of
the Premises and Landlord’s consent thereto is required under this Lease,
Tenant shall give notice thereof to Landlord, which shall be accompanied by (a) with
respect to an assignment of this Lease, the date Tenant desires the assignment
to be effective, and (b) with respect to a sublet of all or a part of the
Premises, a description of the portion of the Premises to be sublet and the
commencement date of such sublease.  Such
notice shall be deemed an irrevocable thirty (30) day offer from Tenant to
Landlord of the right, at Landlord’s option, (1) if the proposed
transaction is an assignment of this Lease, to terminate this Lease with
respect to the entire Premises as of the date indicated in the notice from
Tenant to Landlord in (a) above (except as hereafter otherwise provided),
or (2) if the proposed transaction is a sublease of thirty percent (30%)
or more of the rentable square footage of the Premises (inclusive of any then
subleased space at the Premises and any proposed sublease space) to a
non-Related Entity or the term of such sublease (including any extension
options provided for under the sublease) exceeds ninety percent (90%) of the
remainder of the Term of this Lease (without regard to any then unexercised
extension options under this Lease, but considering all extension options
granted under the proposed sublease), to terminate this Lease with respect to
the space that Tenant proposes to sublease (the “Partial Space”).  Such
option may be exercised by notice from Landlord to Tenant within thirty (30)
days after delivery of Tenant’s notice. 
Subject to Section 13.6, if Landlord exercises its option to
terminate all or a portion of this Lease, (A) this Lease shall end and
expire with respect to all or a portion of the Premises, as the case may be, on
the date that such assignment or sublease was to commence, provided that such
date is in no event earlier than ninety (90) days after the date Landlord
receives the above notice unless Landlord agrees to such earlier date, (B) Rent
shall be apportioned, paid or refunded as of such date, (C) Tenant, upon
Landlord’s request, shall enter into an amendment of this Lease ratifying and confirming
such total or partial termination, and setting forth any appropriate
modifications to the terms and provisions hereof, and (D) Landlord shall
be free to lease the Premises (or any part thereof) to Tenant’s prospective
assignee or subtenant.  Notwithstanding
anything in this Section to the contrary, Section 13.6 shall take
precedence over any arguably conflicting provision in this Section.

 

Section 13.3         Conditions to Assignment/Subletting.

 

(a)           If Landlord does not exercise its
termination option under Section 13.2 or

 

34

 

if Landlord
otherwise does not have a termination option, then provided that no Event of
Default then exists, Landlord’s consent to the proposed assignment or
subletting shall not be unreasonably withheld or delayed.  Such consent shall be granted or denied
within thirty (30) days after delivery to Landlord of (i) a true and
complete statement reasonably detailing the identity of the proposed assignee
or subtenant (“Transferee”), the
nature of its business and its proposed use of the Premises, (ii) current
financial information with respect to the Transferee, including its most recent
financial statements, and (iii) any other information Landlord may
reasonably request, provided that:

 

(i)            in Landlord’s reasonable judgment, the
Transferee is engaged in a business or activity, and the Premises will be used
in a manner, which (1) is in keeping with the then standards of the
Building, (2) is for the Permitted Uses, and (3) does not violate any
restrictions set forth in this Lease, any Mortgage or Superior Lease or any
negative covenant as to use of the Premises required by any other lease in the
Building;

 

(ii)           the Transferee is reputable with
sufficient financial means to perform all of its obligations under this Lease
or the sublease, as the case may be;

 

(iii)          reserved;

 

(iv)          the Transferee is not a person or entity
(or affiliate of a person or entity) with whom Landlord is then or has been
within the prior 6 months negotiating in connection with the rental of space in
the Building;

 

(v)           reserved

 

(vi)          with respect to any transaction occurring
prior to the last day of the fifth (5th)
Lease Year, the aggregate consideration to be paid by the Transferee under the
terms of the proposed sublease shall not be less than sixty percent (60%) of
the fixed rent at which Landlord is then offering to lease other space in the
Building (the “Market Sub-rent”)
determined as though the Premises were vacant and taking into account (1) the
length of the term of the proposed sublease, (2) any rent concessions
granted to Transferee, and (3) the cost of any Alterations being performed
for the Transferee;

 

(vii)         Tenant is not released from liability
under the Lease;

 

(viii)        with respect to any assignment or subletting
for which Landlord’s consent is required under this Lease, Tenant shall, upon
demand, reimburse Landlord for all actual reasonable out-of-pocket expenses
incurred by Landlord in connection with such proposed assignment or sublease,
including any investigations as to the acceptability of the Transferee and all
legal costs reasonably incurred in connection with the granting of any
requested consent; and

 

(ix)           the Transferee shall not be entitled,
directly or indirectly, to diplomatic or sovereign immunity, regardless of
whether the Transferee agrees to waive such diplomatic or sovereign immunity,
and shall be subject to the service of process in, and the jurisdiction of the
courts of, the State.

 

35

 

(b)           With respect to each and every subletting
and/or assignment approved by Landlord under the provisions of this Lease:

 

(i)            the form of the proposed assignment or
sublease shall be reasonably satisfactory to Landlord;

 

(ii)           no sublease shall be for a term ending
later than the Expiration Date;

 

(iii)          no Transferee shall take possession of
any part of the Premises, until an executed counterpart of such sublease or
assignment has been delivered to Landlord and approved by Landlord as provided
in Section 13.3;

 

(iv)          if an Event of Default occurs prior to
the effective date of such assignment or subletting, then Landlord’s consent
thereto, if previously granted, shall be immediately deemed revoked without
further notice to Tenant, and if such assignment or subletting would have been
permitted without Landlord’s consent pursuant to Section 13.7, such
permission shall be void and without force and effect, and in either such case,
any such assignment or subletting shall constitute a further Event of Default
hereunder; and

 

(v)           each sublease shall be subject and
subordinate to this Lease and to the matters to which this Lease is or shall be
subordinate; and Tenant and each Transferee shall be deemed to have agreed that
upon the occurrence and during the continuation of an Event of Default
hereunder, Tenant has hereby assigned to Landlord, and Landlord may, at its
option, accept such assignment of, all right, title and interest of Tenant as
sublandlord under such sublease, together with all modifications, extensions
and renewals thereof then in effect and such Transferee shall, at Landlord’s
option, attorn to Landlord pursuant to the then executory provisions of such
sublease, except that Landlord shall not be (A) liable for any previous
act or omission of Tenant under such sublease, (B) subject to any
counterclaim, offset or defense not expressly provided in such sublease, which
theretofore accrued to such Transferee against Tenant, (C) bound by any
previous modification of such sublease not consented to by Landlord or by any
prepayment of more than one month’s rent, (D) bound to return such
Transferee’s security deposit, if any, except to the extent Landlord shall
receive actual possession of such deposit and such Transferee shall be entitled
to the return of all or any portion of such deposit under the terms of its
sublease, or (E) obligated to make any payment to or on behalf of such
Transferee, or to perform any work in the subleased space or the Building, or
in any way to prepare the sublet space for occupancy, beyond Landlord’s
obligations under this Lease.  The
provisions of this Section shall be self-operative, and no further
instrument shall be required to give effect to this provision, provided that
the Transferee shall execute and deliver to Landlord any instruments Landlord
may reasonably request to evidence and confirm such subordination and
attornment.

 

Section 13.4         Binding on Tenant; Indemnification of
Landlord.  Notwithstanding any assignment or subletting
or any acceptance of rent by Landlord from any Transferee, Tenant shall remain
fully liable for the payment of all Rent due and for the performance of all the
covenants, terms and conditions contained in this Lease on Tenant’s part to be
observed and performed, and any default under any term, covenant or condition
of this Lease by any Transferee or anyone

 

36

 

claiming under or
through any Transferee shall be deemed to be a default under this Lease by
Tenant.  Tenant shall indemnify, defend,
protect and hold harmless Landlord from and against any and all Losses
resulting from any claims that may be made against Landlord by the Transferee
or anyone claiming under or through any Transferee or by any brokers or other
persons claiming a commission or similar compensation in connection with the
proposed assignment or sublease, irrespective of whether Landlord shall give or
decline to give its consent to any proposed assignment or sublease, or if
Landlord shall exercise any of its options under this Article.

 

Section 13.5         Tenant’s Failure to Complete. If Landlord consents to a proposed
assignment or sublease and Tenant fails to execute and deliver to Landlord such
assignment or sublease within one hundred twenty (120) days after the giving of
such consent or the amount of space subject to such sublease varies by more
than ten percent (10%) from that specified in the notice given by Tenant to
Landlord pursuant to Section 13.2, then Tenant shall again comply with all
of the provisions and conditions of Sections 13.2, 13.3 and 13.4 before
assigning this Lease or subletting all or part of the Premises.

 

Section 13.6         Profits. 
If Tenant enters into any assignment or sublease permitted hereunder or
consented to by Landlord, Tenant shall, within sixty (60) days of Landlord’s
consent to such assignment or sublease, deliver to Landlord a list of Tenant’s
reasonable third-party expenses incurred in connection with such transaction
including, without limitation, brokerage fees and legal fees paid in connection
with such transaction, marketing costs, cash inducements, construction costs,
construction and moving allowances, rent abatement and any lease assumption
costs (collectively, “Transaction Costs”),
together with a list of all of Tenant’s Property to be transferred to such
Transferee.  The Transaction Costs shall
be amortized, on a straight-line basis, over the term of any sublease or
assignment.  Tenant shall deliver to
Landlord evidence of the payment of such Transaction Costs promptly after the
same are paid.  In consideration of such
assignment or subletting, Tenant shall pay to Landlord:

 

(a)           In the case of an assignment, on the
effective date of the assignment, fifty percent (50%) of all sums and other
consideration paid to Tenant by the Transferee for or by reason of such assignment
(including sums paid for the sale or rental of Tenant’s Property, less, the
then fair market or rental value thereof, as reasonably determined by Landlord)
after first deducting the Transaction Costs; or

 

(b)           In the case of a sublease, fifty percent
(50%) of any consideration paid under the sublease to Tenant by the Transferee
which exceeds on a per square foot basis the Fixed Rent and Additional Rent
accruing during the term of the sublease in respect of the subleased space
(together with any sums paid for the sale or rental of Tenant’s Property, less,
the then fair market or rental value thereof, as reasonably determined by
Landlord) after first deducting the monthly amortized amount of Transaction
Costs.  The sums payable under this
clause shall be paid by Tenant to Landlord monthly as and when paid by the
subtenant to Tenant.  The foregoing
notwithstanding, this Section shall not apply with respect to any transfer
to a Related Entity in accordance with the terms and provisions of Section 13.7.

 

37

 

Section 13.7         Transfers.

 

(a)           If Tenant is a legal entity, the transfer
(by one or more transfers), directly or indirectly, by operation of law or
otherwise, of a majority of the stock or other beneficial ownership interest in
Tenant or of all or substantially all of the assets of Tenant (collectively, “Ownership Interests”) shall be deemed a
voluntary assignment of this Lease; provided, however, that the provisions of
this Article shall not apply to the transfer of Ownership Interests in
Tenant if and so long as Tenant is or becomes publicly traded on a nationally
recognized stock exchange.  For purposes
of this Article the term “transfers”
shall be deemed to include (x) the issuance of new Ownership Interests which
results in a majority of the Ownership Interests in Tenant being held by a
person or entity which does not hold a majority of the Ownership Interests in
Tenant on the Effective Date and (y) except as provided below, the sale or
transfer of all or substantially all of the assets of Tenant in one or more
transactions and the merger or consolidation of Tenant into or with another
business entity.  The provisions of Section 13.1
shall not apply to transactions with a business entity into or with which Tenant
is merged or consolidated or to which all or substantially all of Tenant’s
assets are transferred so long as (i) such transfer was made for a
legitimate independent business purpose and not for the purpose of transferring
this Lease, (ii) the successor to Tenant has a net worth computed in
accordance with generally accepted accounting principles at least equal to the
net worth of Tenant immediately prior to such merger, consolidation or
transfer, and (iii) proof reasonably satisfactory to Landlord of such net
worth is delivered to Landlord at least ten (10) days following the
effective date of any such transaction. 
Tenant may also, upon prior notice to Landlord, permit any business
entity which controls, is controlled by, or is under common control with the
original Tenant (a “Related Entity”)
to sublet or take assignment of all or part of the Premises for any Permitted
Uses, provided the Related Entity is in Landlord’s reasonable judgment of a
character and engaged in a business which is in keeping with the standards for
the Building and for so long as such entity remains a Related Entity.  Such sublease or assignment shall not be
deemed to vest in any such Related Entity any right or interest in this Lease
nor shall it relieve, release, impair or discharge any of Tenant’s obligations
hereunder.  For the purposes hereof, “control” shall be deemed to mean ownership
of not less than fifty percent (50%) of all of the Ownership Interests of such
corporation or other business entity.

 

(b)           The limitations set forth in this Section shall
apply to Transferee(s) and guarantor(s) of this Lease, if any, and
any transfer by any such entity in violation of this Section shall be a
transfer in violation of Section 13.1.

 

(c)           Any modification, amendment or extension
of a sublease and/or any other agreement by which a landlord (or any affiliate
thereof) of a building other than the Building agrees to assume the obligations
of Tenant under this Lease shall be deemed a sublease for the purposes of Section 13.1
hereof.

 

Section 13.8         Assumption of Obligations. 
No assignment or transfer shall be effective unless and until the
Transferee executes, acknowledges and delivers to Landlord an agreement in form
and substance reasonably satisfactory to Landlord whereby the assignee (a) assumes
Tenant’s obligations under this Lease arising from and after the effective date
of the assignment and (b) agrees that, notwithstanding such assignment or
transfer, the provisions of Section 13.1 hereof shall be binding upon it
in respect of all future assignments and transfers.

 

38

 

Section 13.9         Tenant’s Liability. 
The joint and several liability of Tenant and any successors-in-interest
of Tenant and the due performance of Tenant’s obligations under this Lease
shall not be discharged, released or impaired by any agreement or stipulation
made by Landlord, or any grantee or assignee of Landlord, extending the time,
or modifying any of the terms and provisions of this Lease, or by any waiver or
failure of Landlord, or any grantee or assignee of Landlord, to enforce any of
the terms and provisions of this Lease.

 

Section 13.10  Listings in Building Directory. 
The listing of any name other than that of Tenant on the doors of the
Premises, the Building directory or elsewhere shall not vest any right or
interest in this Lease or in the Premises, nor be deemed to constitute Landlord’s
consent to any assignment or transfer of this Lease or to any sublease of the
Premises or to the use or occupancy thereof by others.  Any such listing shall constitute a privilege
revocable in Landlord’s discretion by notice to Tenant.

 

Section 13.11  Lease Disaffirmance or Rejection. 
Unless Tenant is expressly released from this Lease in the course of an
assignment pursuant to an instrument in writing duly executed by Landlord if at
any time after an assignment by Tenant named herein, this Lease is not affirmed
or is rejected in any bankruptcy proceeding or any similar proceeding, or upon
a termination of this Lease due to any such proceeding, Tenant named herein,
upon request of Landlord given after such disaffirmance, rejection or
termination (and actual notice thereof to Landlord in the event of a
disaffirmance or rejection or in the event of termination other than by act of
Landlord), shall (a) pay to Landlord all Rent and other charges due and
owing by the assignee to Landlord under this Lease to and including the date of
such disaffirmance, rejection or termination, and (b) as “tenant,” enter
into a new lease of the Premises with Landlord for a term commencing on the
effective date of such disaffirmance, rejection or termination and ending on
the Expiration Date, at the same Rent and upon the then executory terms,
covenants and conditions contained in this Lease, except that (i) the
rights of Tenant named herein under the new lease shall be subject to the
possessory rights of the assignee under this Lease and the possessory rights of
any persons or entities claiming through or under such assignee or by virtue of
any statute or of any order of any court (if any), (ii) such new lease
shall require all defaults existing under this Lease to be cured by Tenant
named herein with due diligence, and (iii) such new lease shall require
Tenant named herein to pay all Rent which, had this Lease not been so
disaffirmed, rejected or terminated, would have become due under the provisions
of this Lease after the date of such disaffirmance, rejection or termination
with respect to any period prior thereto. 
Notwithstanding anything in this Section to the contrary, in no
case shall any liability arising under the foregoing provisions of this Section exceed
the aggregate amount of Rent reserved under this Lease less
all amounts received by Landlord pursuant to an obligation arising under this
Lease, from whatever source.  If Tenant
named herein defaults in its obligations to enter into such new lease for a
period of twenty (20) Business Days after Landlord’s request, then, in addition
to all other rights and remedies by reason of default, either at law or in
equity, Landlord shall have the same rights and remedies against Tenant named
herein as if it had entered into such new lease and such new lease had
thereafter been terminated as of the commencement date thereof by reason of
Tenant’s default thereunder.

 

39

 

ARTICLE 14

 

ACCESS TO PREMISES

 

Section 14.1         Landlord’s Access.

 

(a)           Landlord, Landlord’s agents and utility
service providers servicing the Building may erect, use and maintain concealed
ducts, pipes and conduits in and through the Premises provided such use does
not cause the usable area of the Premises to be reduced beyond a de minimis amount.  Landlord shall promptly repair any damage to
the Premises caused by any work performed pursuant to this Article.

 

(b)           Landlord and any other party designated
by Landlord shall have the right to enter the Premises at any time in the case
of an emergency.  Landlord, any Lessor or
Mortgagee and any other party designated by Landlord and their respective
agents shall have the right to enter the Premises at all reasonable times, upon
reasonable notice (which notice may be oral) to examine the Premises, to
perform Restorative Work to the Premises or the Building, to show the Premises
to prospective purchasers, Mortgagees or Lessors and tenants, and their
respective agents and representatives or others.

 

(c)           All parts (except surfaces facing the
interior of the Premises) of all walls, windows and doors bounding the
Premises, all balconies, terraces and roofs adjacent to the Premises, all space
in or adjacent to the Premises used for shafts, stacks, stairways, mail chutes,
conduits and other mechanical facilities, Base Building Systems, Building
facilities and Common Areas are not part of the Premises, and Landlord shall
have the use thereof and access thereto through the Premises for the purposes
of Building operation, maintenance, alteration and repair.

 

Section 14.2         Building Name. 
Landlord has the right at any time to change the name, street address or
designation by which the Building is commonly known; provided, however, that if
Landlord changes the name during the Term (other than as a result of a
Requirement), then Landlord will reimburse Tenant for reasonable out-of-pocket
costs incurred in re-printing all stationery, letterhead, business cards, and
other printed materials that Tenant has on hand (not to exceed $2,000 in the
aggregate).

 

Section 14.3         Light and Air. If at any time any windows of the
Premises are temporarily darkened or covered over by reason of any Restorative
Work, any of such windows are permanently darkened or covered over due to any
Requirement or there is otherwise a diminution of light, air or view by another
structure which may hereafter be erected (whether or not by Landlord), Landlord
shall not be liable for any damages and Tenant shall not be entitled to any
compensation or abatement of any Rent, nor shall the same release Tenant from
its obligations hereunder or constitute an actual or constructive eviction.

 

40

 

ARTICLE
15

 

DEFAULT

 

Section 15.1         Tenant’s Defaults. 
Each of the following events shall be an “Event of Default” hereunder:

 

(a)           Tenant fails to pay when due any
installment of Rent and such default shall continue for five (5) Business
Days after notice of such default is given to Tenant except that if Landlord
shall have given two such notices of default in the payment of any Rent in any
12-month period, Tenant shall not be entitled to any further notice of its
delinquency in the payment of any Rent or an extended period in which to make
payment until such time as 12 consecutive months shall have elapsed without
Tenant having failed to make any such payment when due, and the occurrence of
any default in the payment of any Rent within such 12-month period after the
giving of 2 such notices shall constitute an Event of Default; or

 

(b)           Tenant fails to observe or perform any
other term, covenant or condition of this Lease and such failure continues for
more than thirty (30) days after notice by Landlord to Tenant of such default,
or if such default is of a nature that it cannot be completely remedied within
thirty (30) days, failure by Tenant to commence to remedy such failure within
said thirty (30) days, and thereafter diligently take all steps necessary to
remedy such default, provided in all events the same is completed within ninety
(90) days; or

 

(c)           if Landlord applies or retains any part
of the security held by Landlord hereunder in accordance with the terms of this
Lease, and Tenant fails to deposit with Landlord the amount so applied or
retained by Landlord, or to provide Landlord with a replacement Letter of
Credit (as hereinafter defined), if applicable, within five (5) Business
Days after notice by Landlord to Tenant stating the amount applied or retained;
or

 

(d)           Tenant files a voluntary petition in
bankruptcy or insolvency, or is adjudicated a bankrupt or insolvent, or files
any petition or answer seeking any reorganization, liquidation, dissolution or
similar relief under any present or future federal bankruptcy act or any other
present or future applicable federal, state or other statute or law, or makes
an assignment for the benefit of creditors or seeks or consents to or
acquiesces in the appointment of any trustee, receiver, liquidator or other
similar official for Tenant or for all or any part of Tenant’s property; or

 

(e)           a court of competent jurisdiction shall
enter an order, judgment or decree adjudicating Tenant bankrupt, or appointing
a trustee, receiver or liquidator of Tenant, or of the whole or any substantial
part of its property, without the consent of Tenant, or approving a petition
filed against Tenant seeking reorganization or arrangement of Tenant under the
bankruptcy laws of the United States, as now in effect or hereafter amended, or
any state thereof, and such order, judgment or decree shall not be vacated or
set aside or stayed within sixty (60) days from the date of entry thereof; or

 

41

 

(f)            Guarantor generally does not, or is
unable to, or admits in writing its inability to, pay its debts as they become
due or is subject to the filing of a petition, case or proceeding in
bankruptcy; or

 

(g)           the occurrence of a default under any
guaranty of all or any portion of Tenant’s liabilities under this Lease, which
default continues beyond the expiration of any applicable notice and/or cure
period(s) (if any) set forth in such guaranty.

 

Section 15.2         Landlord’s Remedies.

 

(a)           Upon the occurrence of
an Event of Default, Landlord, at its option, and without limiting the exercise
of any other right or remedy Landlord may have on account of such Event of
Default, and without any further demand or notice, may give to Tenant notice of
(i) the termination of this Lease, in which event this Lease and the Term
shall come to an end and expire (whether or not the Term shall have commenced)
upon the termination date set forth in such notice with the same force and
effect as if the date set forth in the notice was the Expiration Date stated
herein, and/or (ii) the termination of Tenant’s right of possession of the
Premises, in which event Tenant’s right of possession of the Premises shall
come to an end and expire (whether or not the Term shall have commenced) upon
the termination date set forth in such notice; and Tenant shall then quit and
surrender the Premises to Landlord, but Tenant shall remain liable for damages
as provided in this Article and/or, to the extent permitted by law,
Landlord may remove all persons and property from the Premises, which property
shall be stored by Landlord at a warehouse or elsewhere at the risk, expense
and for the account of Tenant.  Any
termination notice may be given simultaneously with any notice of default given
to Tenant.

 

(b)           If this Lease and the Term, or Tenant’s
right to possession of the Premises, terminate as provided in Section 15.2(a):

 

(i)            Tenant shall quit and surrender the Premises to
Landlord, and Landlord and its agents may immediately, or at any time after
such termination, re-enter the Premises or any part thereof, without notice,
either by summary proceedings, or by any other applicable action or proceeding,
or by force (to the extent permitted by law) or otherwise in accordance with
applicable legal proceedings (without being liable to indictment, prosecution
or damages therefor), and may repossess the Premises and dispossess Tenant and
any other persons from the Premises and remove any and all of their property
and effects from the Premises.

 

(ii)           Landlord, at Landlord’s option, may relet all or any
part of the Premises from time to time, either in the name of Landlord or
otherwise, to such tenant or tenants, for any term ending before, on or after
the Expiration Date, at such rental and upon such other conditions (which may
include concessions and free rent periods) as Landlord, in its sole discretion,
may determine.  Landlord shall have no
obligation to accept any tenant offered by Tenant and shall not be liable for
failure to relet or, in the event of any such reletting, for failure to collect
any rent due upon any such reletting; and no such failure shall relieve Tenant
of, or otherwise affect, any liability under this Lease.  Landlord shall use reasonable efforts to
mitigate its damages but shall not be required to divert prospective tenants
from any other portions of the Building. 
Landlord, at Landlord’s option, may make such alterations, decorations
and other

 

42

 

physical changes in and
to the Premises as Landlord, in its sole discretion, considers advisable or
necessary in connection with such reletting or proposed reletting, without
relieving Tenant of any liability under this Lease or otherwise affecting any such
liability.

 

(c)           Tenant, on its own behalf and on behalf
of all persons claiming through or under Tenant, including all creditors,
hereby waives all rights which Tenant and all such persons might otherwise have
under any Requirement (i) to the service of any notice of intention to
re-enter or to institute legal proceedings, (ii) to redeem, or to re-enter
or repossess the Premises, (iii) to restore the operation of this Lease,
after (A) Tenant shall have been dispossessed by judgment or by warrant of
any court or judge, (B) any re-entry by Landlord, or (C) any
expiration or early termination of the term of this Lease, whether such
dispossess, re-entry, expiration or termination shall be by operation of law or
pursuant to the provisions of this Lease, and (iv) to any notice to quit
the Premises.  The words “redeem,” “redemption,”
“re-enter,” “re-entry” and “re-entered” as used in this Lease shall not be
deemed to be restricted to their technical legal meanings.

 

(d)           Upon the breach or threatened breach by
Tenant, or any persons claiming through or under Tenant, of any term, covenant
or condition of this Lease, Landlord shall have the right to enjoin such breach
and to invoke any other remedy allowed by law or in equity as if re-entry,
summary proceedings and other special remedies were not provided in this Lease
for such breach.  The rights to invoke
the remedies set forth above are cumulative and shall not preclude Landlord
from invoking any other remedy allowed at law or in equity.

 

Section 15.3         Landlord’s Damages.

 

(a)           If this Lease and the Term, or Tenant’s
right to possession of the Premises, terminate as provided in Section 15.2,
then:

 

(i)            Tenant shall pay to Landlord all items of Rent payable
under this Lease by Tenant to Landlord prior to the date of termination;

 

(ii)           Landlord may retain all monies, if any, paid by Tenant
to Landlord, whether as prepaid Rent, a security deposit or otherwise, which
monies, to the extent not otherwise applied to amounts due and owing to
Landlord, shall be credited by Landlord against any damages payable by Tenant
to Landlord;

 

(iii)          Tenant shall pay to Landlord, in monthly installments,
on the days specified in this Lease for payment of installments of Fixed Rent,
any Deficiency; it being understood that Landlord shall be entitled to recover
the Deficiency from Tenant each month as the same shall arise, and no suit to
collect the amount of the Deficiency for any month, shall prejudice Landlord’s
right to collect the Deficiency for any subsequent month by a similar proceeding;
and

 

(iv)          whether or not Landlord shall have collected any
monthly Deficiency, Tenant shall pay to Landlord, on demand, in lieu of any
further Deficiency and as liquidated and agreed final damages, a sum equal to
the amount by which the Rent for the period which otherwise would have
constituted the unexpired portion of the Term (assuming the Additional Rent
during such period to be the same as was payable for the year immediately

 

43

 

preceding such termination
or re-entry, increased in each succeeding year by 4% (on a compounded basis))
exceeds the then fair and reasonable rental value of the Premises, for the same
period (with both amounts being discounted to present value at a rate of
interest equal to 2% below the then Base Rate) less the aggregate amount of
Deficiencies theretofore collected by Landlord pursuant to the provisions of Section 15.3(a)(iii) for
the same period.  If, before presentation
of proof of such liquidated damages to any court, commission or tribunal, the
Premises, or any part thereof, shall have been relet by Landlord for the period
which otherwise would have constituted the unexpired portion of the Term, or
any part thereof, the amount of rent reserved upon such reletting shall be
deemed prima facie, to be the
fair and reasonable rental value for the part or the whole of the Premises so
relet during the term of the reletting.

 

(b)           If the Premises, or any part thereof,
shall be relet together with other space in the Building, the rents collected
or reserved under any such reletting and the expenses of any such reletting
shall be equitably apportioned for the purposes of this Section.  Tenant shall not be entitled to any rents
collected or payable under any reletting, whether or not such rents exceeds the
Fixed Rent reserved in this Lease. 
Nothing contained in this Article shall be deemed to limit or
preclude the recovery by Landlord from Tenant of the maximum amount allowed to
be obtained as damages by any Requirement, or of any sums or damages to which
Landlord may be entitled in addition to the damages set forth in this Section;
provided, however, that Landlord shall only be entitled to one (1) full
recovery for the breach of this Lease.

 

Section 15.4         Interest. 
If any payment of Rent is not paid when due (including any applicable
grace period, if any), interest shall accrue on such payment, from the date
such payment became due until paid at the Interest Rate.  Tenant acknowledges that late payment by
Tenant of Rent will cause Landlord to incur costs not contemplated by this
Lease, the exact amount of such costs being extremely difficult and
impracticable to fix.   Such costs
include, without limitation, processing and accounting charges, and late
charges that may be imposed on Landlord by the terms of any note secured by a
Mortgage covering the Premises. 
Therefore, in addition to interest, if any amount is not paid when due,
a late charge equal to five percent (5%) of such amount shall be assessed;
provided, however, that on 1 occasion during any Calendar Year of the Term,
Landlord shall give Tenant notice of such late payment and Tenant shall have a
period of five (5) days thereafter in which to make such payment before
any late charge is assessed.  Such
interest and late charges are separate and cumulative and are in addition to
and shall not diminish or represent a substitute for any of Landlord’s rights
or remedies under any other provision of this Lease.

 

Section 15.5         Other Rights of Landlord. 
If Tenant fails to pay any Additional Rent when due, Landlord, in
addition to any other right or remedy, shall have the same rights and remedies
as in the case of a default by Tenant in the payment of Fixed Rent.   If Tenant is in arrears in the payment of
Rent, Tenant waives Tenant’s right, if any, to designate the items against
which any payments made by Tenant are to be credited, and Landlord may apply
any payments made by Tenant to any items Landlord sees fit, regardless of any
request by Tenant. Landlord reserves the right, without liability to Tenant and
without constituting any claim of constructive eviction, to suspend furnishing
or rendering to Tenant any property, material, labor, utility or other service,
whenever Landlord is obligated to furnish or render the same at the expense of
Tenant, if (but only for so long as) Tenant is in arrears in paying Landlord
for such

 

44

 

items for more than five (5) Business
Days after notice from Landlord to Tenant demanding the payment of such arrears.
If Tenant fails to pay any Rent when due or Tenant otherwise fails to fully and
timely perform its obligations under this Lease and Landlord engages an
attorney in connection with such failure, Tenant shall pay upon demand the
reasonable attorneys’ fees incurred by Landlord regardless of whether Landlord
initiates legal action in connection with such failure.

 

Section 15.6         Default
by Landlord.    Landlord will be in default if Landlord fails
to perform its obligations under this Lease within thirty (30) days after
written notice by Tenant to Landlord (and any Mortgagee or Lessor of which
Tenant has received written notice from Landlord) specifying wherein Landlord
has failed to perform such obligations. 
If the nature of Landlord’s obligation is such that more than thirty
(30) days are required for performance, then Landlord will not be in default if
Landlord commences performance within such thirty (30) day period and
thereafter diligently prosecutes the same to completion.  Upon the occurrence of a default, Tenant
shall have all rights and remedies afforded to it, whether at law or in equity.

 

ARTICLE
16

 

LANDLORD’S
RIGHT TO CURE; FEES AND EXPENSES

 

If Tenant defaults in the
performance of its obligations under this Lease, Landlord, without waiving such
default, may perform such obligations at Tenant’s expense: (a) immediately,
and without notice, in the case of emergency or if the default (i) materially
interferes with the use by any other tenant of the Building, (ii) materially
interferes with the efficient operation of the Building, (iii) results in
a violation of any Requirement, or (iv) results or will result in a
cancellation of any insurance policy maintained by Landlord, and (b) in
any other case if such default continues after ten (10) Business Days from
the date Landlord gives notice of the defaulted obligation.  All actual reasonable out-of-pocket costs and
expenses incurred by Landlord in connection with any such performance by it and
all actual reasonable out-of-pocket costs and expenses, including reasonable
counsel fees and disbursements, incurred by Landlord in any action or
proceeding (including any unlawful detainer proceeding) brought by Landlord or
in which Landlord is a party to enforce any obligation of Tenant under this
Lease and/or right of Landlord in or to the Premises, shall be paid by Tenant
to Landlord within 10 Business Days after receipt of Landlord’s invoice for
such amount (accompanied by copies of invoice(s) evidencing such costs),
with interest thereon at the Interest Rate from the date that notice is
delivered.  Except as expressly provided
to the contrary in this Lease, all costs and expenses which, pursuant to this
Lease are incurred by Landlord and payable to Landlord by Tenant, and all
charges, amounts and sums payable to Landlord by Tenant for any property,
material, labor, utility or other services which, pursuant to this Lease,
attributable directly to Tenant’s use or occupancy of the Premises or presence
at the Building, or at the request and for the account of Tenant, are provided,
furnished or rendered by Landlord, shall become due and payable by Tenant to
Landlord within ten (10) Business Days after receipt of Landlord’s invoice
for such amount (accompanied by copies of invoice(s) evidencing such
costs).

 

45

 

ARTICLE
17

 

NO
REPRESENTATIONS BY LANDLORD; LANDLORD’S APPROVAL

 

Section 17.1         No Representations. 
Except as expressly set forth in this Lease, Landlord and Landlord’s
agents have made no warranties, representations, statements or promises with
respect to the Building, the Real Property or the Premises and no rights,
easements or licenses are acquired by Tenant by implication or otherwise.  Tenant is entering into this Lease after full
investigation and is not relying upon any statement or representation made by
Landlord not embodied in this Lease.

 

Section 17.2         No Money Damages. 
Except to the extent that Landlord is acting with gross negligence or is
conducting itself with bad faith, wherever in this Lease Landlord’s consent or
approval is required, if Landlord refuses to grant such consent or approval,
whether or not Landlord expressly agreed that such consent or approval would
not be unreasonably withheld, Tenant shall not make, and Tenant hereby waives,
any claim for money damages (including any claim by way of set-off,
counterclaim or defense) based upon Tenant’s claim or assertion that Landlord
unreasonably withheld or delayed its consent or approval.  Except as set forth above (in which case
Tenant reserves its rights to seek compensatory damages), Tenant’s sole remedy
shall be an action or proceeding to enforce such provision, by specific
performance, injunction or declaratory judgment.  In no event shall Landlord be liable for, and
Tenant, on behalf of itself and all other Tenant Parties, hereby waives any
claim for, any indirect, consequential or punitive damages, including loss of
profits or business opportunity, arising under or in connection with this
Lease.

 

Section 17.3        Reasonable Efforts. 
For purposes of this Lease, “reasonable efforts” by Landlord shall not
include an obligation to employ contractors or labor at overtime or other
premium pay rates or to incur any other overtime costs or additional expenses
whatsoever.

 

ARTICLE
18

 

END
OF TERM

 

Section 18.1         Expiration. 
Upon the expiration or earlier termination of this Lease, Tenant shall
quit and surrender the Premises to Landlord vacant, broom clean and in good
order and condition, ordinary wear and tear and damage for which Tenant is not
responsible under the terms of this Lease excepted, and Tenant shall have
satisfied Tenant’s removal obligations under Article 5.

 

Section 18.2         Holdover Rent. Landlord and Tenant recognize that
Landlord’s damages resulting from Tenant’s failure to timely surrender possession
of the Premises may be substantial, may exceed the amount of the Rent payable
hereunder, and will be impossible to accurately measure. Accordingly, if
possession of the Premises is not surrendered to Landlord on the Expiration
Date or sooner termination of this Lease, in addition to any other rights or
remedies Landlord may have hereunder or at law, Tenant shall (a) pay to
Landlord for each month (or any portion thereof) during which Tenant holds over
in the Premises after the Expiration Date or sooner termination of this Lease,
a sum equal to the greater of (i) the Holdover Multiplier times

 

46

 

the Rent payable under
this Lease for the last full calendar month of the Term, and (ii) the
Holdover Multiplier times the rate Landlord is then asking for comparable space
in the Building (or if no comparable space is then available, the Holdover
Multiplier times the fair market rental value of the Premises as reasonably
determined by Landlord), (b) be liable to Landlord for (1) any
payment or rent concession which Landlord may be required to make to any tenant
obtained by Landlord for all or any part of the Premises (a “New Tenant”)
in order to induce such New Tenant not to terminate its lease by reason of the holding-over
by Tenant, and (2) the loss of the benefit of the bargain if any New
Tenant shall terminate its lease by reason of the holding-over by Tenant, and (c) indemnify
Landlord against all claims for damages by any New Tenant. No holding-over by
Tenant, nor the payment to Landlord of the amounts specified above, shall
operate to extend the Term hereof or to establish a month to month or any other
tenancy. Nothing herein contained shall be deemed to permit Tenant to retain
possession of the Premises after the Expiration Date or sooner termination of
this Lease, and no acceptance by Landlord of payments from Tenant after the
Expiration Date or sooner termination of this Lease shall be deemed to be other
than on account of the amount to be paid by Tenant in accordance with the
provisions of this Section.  The Holdover
Multiplier shall mean one hundred twenty-five percent (125%) as to any holdover
not exceeding two (2) months and two hundred percent (200%) as to any
holdover exceeding two (2) months.

 

ARTICLE
19

 

QUIET
ENJOYMENT

 

Provided this Lease is in
full force and effect and no Event of Default then exists, Tenant may peaceably
and quietly enjoy the Premises without hindrance by Landlord or any person
lawfully claiming through or under Landlord, subject to the terms and
conditions of this Lease and to all Superior Leases and Mortgages.

 

ARTICLE
20

 

NO
SURRENDER; NO WAIVER

 

Section 20.1         No Surrender or Release. 
No act or thing done by Landlord or Landlord’s agents or employees
during the Term shall be deemed an acceptance of a surrender of the Premises,
and no provision of this Lease shall be deemed to have been waived by Landlord
or Tenant, unless such waiver is in writing and is signed by Landlord or Tenant
as applicable, except to the extent expressly provided otherwise in this Lease.

 

Section 20.2         No Waiver. 
The failure of either party to seek redress for violation of, or to
insist upon the strict performance of, any covenant or condition of this Lease,
or any of the Rules and Regulations, shall not be construed as a waiver or
relinquishment for the future performance of such obligations of this Lease or
the Rules and Regulations, or of the right to exercise such election but
the same shall continue and remain in full force and effect with respect to any
subsequent breach, act or omission.  The
receipt by Landlord of any Rent payable pursuant to this Lease or any other
sums with knowledge of the breach of any covenant of this Lease shall not be
deemed a waiver of such breach.  No
payment by Tenant or receipt by Landlord of a lesser amount than the monthly
Rent herein stipulated shall be deemed to be other than a payment on

 

47

 

account of the earliest
stipulated Rent, or as Landlord may elect to apply such payment, nor shall any
endorsement or statement on any check or any letter accompanying any check or
payment as Rent be deemed an accord and satisfaction, and Landlord may accept
such check or payment without prejudice to Landlord’s right to recover the balance
of such Rent or pursue any other remedy provided in this Lease.

 

ARTICLE
21

 

WAIVER OF TRIAL BY JURY

 

Section 21.1         Jury Trial Waiver. 
Landlord and Tenant hereby waive trial by jury in any action, proceeding
or counterclaim brought by either party against the other in connection with
any matters in any way arising out of or connected with this Lease, the
relationship of Landlord and Tenant, Tenant’s use or occupancy of the Premises,
any guaranty of all or any portion of Tenant’s liabilities under this Lease or
the enforcement of any remedy under any statute, emergency or otherwise.

 

ARTICLE
22

 

NOTICES

 

Except as otherwise
expressly provided in this Lease, all consents, notices, demands, requests,
approvals or other communications given under this Lease shall be in writing
and shall be deemed sufficiently given or rendered only if delivered by hand
(provided a signed receipt is obtained) or if sent by registered or certified
mail (return receipt requested) or by a nationally recognized overnight delivery
service making receipted deliveries, addressed to Landlord and Tenant as set
forth in Article 1, and to any Mortgagee or Lessor who shall require
copies of notices and whose address is provided to Tenant, or to such other
address(es) as Landlord, Tenant or any Mortgagee or Lessor may designate as its
new address(es) for such purpose by notice given to the other in accordance
with the provisions of this Article.  Any
such consent, notice, demand, request, approval or other communication shall be
deemed to have been given on the date of receipted delivery, refusal to accept
delivery or when delivery is first (1st)
attempted but cannot be made due to a change of address for which no notice is
given or three (3) Business Days after it shall have been mailed as
provided in this Article, whichever is earlier.

 

ARTICLE
23

 

RULES
AND REGULATIONS

 

All Tenant Parties shall
observe and comply with, and Tenant shall cause all Tenant Parties shall
observe and comply with the Rules and Regulations, as reasonably supplemented
or amended from time to time.  Landlord
reserves the right, from time to time, to adopt additional reasonable Rules and
Regulations and to reasonably amend the Rules and Regulations then in
effect; provided, however, that no change to the Rules and Regulations
shall result in a material out-of-pocket cost to Tenant unless such change is
usual and customary for Comparable Buildings. 
Nothing contained in this Lease shall impose upon Landlord any
obligation to enforce the Rules and Regulations or terms, covenants or
conditions in any other lease against any other

 

48

 

Building tenant, and
Landlord shall not be liable to Tenant for violation of the same by any other
tenant, its employees, agents, visitors or licensees, provided that Landlord
shall enforce the Rules or Regulations against Tenant in a
non-discriminatory fashion. To the extent that any Rules or Regulations
conflict with the express terms of this Lease, the terms of this Lease shall
control.

 

ARTICLE
24

 

BROKER

 

Landlord has retained
Landlord’s Agent as leasing agent in connection with this Lease and Landlord
will be solely responsible for any fee that may be payable to Landlord’s
Agent.  Landlord agrees to pay a commission to Tenant’s Broker pursuant to a
separate agreement.  Each of
Landlord and Tenant represents and warrants to the other that neither it nor
its agents have dealt with any broker in connection with this Lease other than
Landlord’s Agent and Tenant’s Broker
and that no other broker, finder or like entity procured or negotiated this
Lease or is entitled to any fee or commission in connection herewith.  Each of Landlord and Tenant shall indemnify,
defend, protect and hold the other party harmless from and against any and all
Losses which the indemnified party may incur by reason of any claim of or
liability to any broker, finder or like agent (other than Landlord’s Agent and Tenant’s Broker) arising out of
any dealings claimed to have occurred between the indemnifying party and the
claimant in connection with this Lease, and/or the above representation being
false.

 

ARTICLE
25

 

INDEMNITY

 

Section 25.1         Tenant’s Indemnity. Tenant shall not do or permit to be done
any act or thing upon the Premises and Tenant will not do any act or thing in
the Building which may subject Landlord to any liability or responsibility for
injury, damages to persons or property or to any liability by reason of any
violation of any Requirement, and shall exercise such control over the Premises
as to fully protect Landlord against any such liability. Subject to the
provisions of Section 11.2, except to the extent of any such injury or
damage resulting from the negligence or willful misconduct of Landlord or
Landlord’s agents or employees, Tenant shall indemnify, defend, protect and
hold harmless each of the Landlord Parties from and against any and all Losses,
resulting from any claims (i) against the Landlord Parties arising from
any act, omission or negligence of all Tenant Parties, (ii) against the
Landlord Parties arising from any accident, injury or damage to any person or
to the property of any person and occurring in or about the Premises, and (iii) against
the Landlord Parties resulting from any breach, violation or nonperformance of
any covenant, condition or agreement of this Lease on the part of Tenant to be
fulfilled, kept, observed or performed.

 

Section 25.2         Landlord’s Indemnity. Subject to the provisions of Section 11.2,
Landlord shall indemnify, defend and hold harmless Tenant and each of the
Tenant Parties from and against all Losses incurred by Tenant arising from any
accident, injury or damage to any person or the property of any person in or
about the Common Areas (specifically excluding the Premises) to the extent
attributable to the gross negligence or willful misconduct of Landlord or
Landlord Parties.

 

49

 

Section 25.3         Defense and Settlement. 
If any claim, action or proceeding set forth in Section 25.1 is
made or brought against any Landlord Party, then upon demand by a Landlord
Party, Tenant, at Tenant’s expense, shall resist or defend such claim, action
or proceeding in the Landlord Party’s name (if necessary), by attorneys
approved by the Landlord Party, which approval shall not be unreasonably withheld
(attorneys for Tenant’s insurer shall be deemed approved for purposes of this
Section).  Notwithstanding the foregoing,
a Landlord Party may retain its own attorneys to participate or assist in
defending any claim, action or proceeding involving potential liability in
excess of the amount available under Tenant’s liability insurance carried under
Section 11.1 for such claim and Tenant shall pay the actual reasonable
out-of-pocket fees and disbursements of such attorneys.  If Tenant fails to diligently defend or if
there is a legal conflict or other conflict of interest, then Landlord may
retain separate counsel at Tenant’s expense. 
Notwithstanding anything herein contained to the contrary, Tenant may
direct the Landlord Party to settle any claim, suit or other proceeding
provided that (a) such settlement shall involve no obligation on the part
of the Landlord Party other than the payment of money, (b) any payments to
be made pursuant to such settlement shall be paid in full exclusively by Tenant
at the time such settlement is reached, (c) such settlement shall not
require the Landlord Party to admit any liability, and (d) the Landlord
Party shall have received an unconditional release from the other parties to
such claim, suit or other proceeding.

 

ARTICLE
26

 

MISCELLANEOUS

 

Section 26.1         Delivery. 
This Lease shall not be binding upon Landlord or Tenant unless and until
Landlord and Tenant shall have executed and delivered this Lease to the other.

 

Section 26.2         Transfer of Real Property. 
Landlord’s obligations under this Lease arising from and after the date
of Transfer shall not be binding upon the Landlord named herein after the sale,
conveyance, assignment or transfer (collectively, a “Transfer”) by such Landlord (or upon any subsequent landlord
after the Transfer by such subsequent landlord) of its interest in the Building
or the Real Property, as the case may be, and in the event of any such
Transfer, Landlord (and any such subsequent Landlord) shall be entirely freed
and relieved of all covenants and obligations of Landlord hereunder arising
from and after the date of Transfer and the transferee of Landlord’s interest
(or that of such subsequent Landlord) in the Building or the Real Property, as
the case may be, shall be deemed to have assumed all obligations under this
Lease arising from and after the date of Transfer.

 

Section 26.3         Limitation on Liability. 
The liability of Landlord for Landlord’s obligations under this Lease
shall be limited to Landlord’s interest in the Real Property and Tenant shall
not look to any other property or assets of Landlord or any Landlord Party in
seeking either to enforce Landlord’s obligations under this Lease or to satisfy
a judgment for Landlord’s failure to perform such obligations; and none of the
Landlord Parties shall be personally liable for the performance of Landlord’s
obligations under this Lease.

 

Section 26.4         Rent.  All amounts
payable by Tenant to or on behalf of Landlord under this Lease, whether or not
expressly denominated Fixed Rent, Tenant’s Tax Payment, Tenant’s

 

50

 

Operating Payment,
Additional Rent or Rent, shall constitute rent for the purposes of Section 502(b)(6) of
the United States Bankruptcy Code.

 

Section 26.5         Entire Document. This Lease includes all riders,
exhibits, schedules and other attachments hereto and all supplemental
agreements provided for herein (each of which is incorporated herein by this
reference) and constitutes the entire agreement between the parties and all
prior negotiations and agreements are merged into this Lease.  In the event of any inconsistency between the
terms and provisions of this Lease and the terms and provisions of the riders,
exhibits, schedules and other attachments hereto and all supplemental
agreements provided for herein, the terms and provisions of this Lease shall
control.

 

Section 26.6         Governing Law. 
This Lease shall be governed in all respects by the laws of the State
(but not including the choice of law rules thereof).

 

Section 26.7         Unenforceability. 
If any provision of this Lease, or its application to any person or
circumstance, shall ever be held to be invalid or unenforceable, then in each
such event the remainder of this Lease or the application of such provision to
any other person or any other circumstance (other than those as to which it
shall be invalid or unenforceable) shall not be thereby affected, and each
provision hereof shall remain valid and enforceable to the fullest extent
permitted by law.

 

Section 26.8         Lease Disputes.

 

(a)           Landlord and Tenant agree that all
disputes arising, directly or indirectly, out of or relating to this Lease, and
all actions to enforce this Lease, shall be dealt with and adjudicated in the
courts of the State or the United States District Court for the State and for
that purpose hereby expressly and irrevocably submits itself to the
jurisdiction of such courts. Landlord and Tenant agree that so far as is
permitted under applicable law, this consent to personal jurisdiction shall be
self-operative and no further instrument or action, other than service of
process in one of the manners specified in this Lease, or as otherwise
permitted by law, shall be necessary in order to confer jurisdiction upon it in
any such court.

 

(b)           To the extent that Tenant has or hereafter
may acquire any immunity from jurisdiction of any court or from any legal
process (whether through service or notice, attachment prior to judgment,
attachment in aid of execution, execution or otherwise) with respect to itself
or its property, Tenant irrevocably waives such immunity in respect of its
obligations under this Lease.

 

Section 26.9         Landlord’s Agent. 
Unless Landlord delivers written notice to Tenant to the contrary,
Landlord’s Agent is authorized to act as Landlord’s agent in connection with
the performance of this Lease, and Tenant shall be entitled to rely upon
correspondence received from Landlord’s Agent. Tenant acknowledges that
Landlord’s Agent is acting solely as agent for Landlord in connection with the
foregoing; and neither Landlord’s Agent nor any of its direct or indirect
partners, members, managers, officers, shareholders, directors, employees,
principals, agents or representatives shall have any liability to Tenant in
connection with the performance of this Lease, and Tenant waives any and all
claims against any and all of such parties arising out of, or in any way
connected with, this Lease, the Building or the Real Property.

 

51

 

Section 26.10  Estoppel.  Within ten (10) Business
Days following request from Landlord, any Mortgagee or any Lessor, Tenant shall
deliver to Landlord a statement executed and acknowledged by Tenant, in form
reasonably satisfactory to Landlord, any Mortgagee or any Lessor, (a) stating
the Commencement Date, the Rent Commencement Date and the Expiration Date, and
that this Lease is then in full force and effect and has not been modified (or
if modified, setting forth all modifications), (b) setting forth the date
to which the Fixed Rent and any Additional Rent have been paid, together with
the amount of monthly Fixed Rent and Additional Rent then payable, (c) stating
whether or not, to the best of Tenant’s knowledge, Landlord is in default under
this Lease, and, if Landlord is in default, setting forth the specific nature
of all such defaults, (d) stating the amount of the security, if any,
under this Lease, (e) stating whether there are any subleases or
assignments affecting the Premises, (f) stating the address of Tenant to
which all notices and communications under the Lease shall be sent, and (g) responding
to any other matters reasonably requested by Landlord, such Mortgagee or such
Lessor.  Tenant acknowledges that any
statement delivered pursuant to this Section may be relied upon by any
purchaser or owner of the Real Property or the Building or all or any portion
of Landlord’s interest in the Real Property or the Building or any Superior
Lease, or by any Mortgagee, or assignee thereof or by any Lessor, or assignee
thereof.

 

Section 26.11  Certain Interpretational Rules. 
For purposes of this Lease, whenever the words “include”, “includes”, or
“including” are used, they shall be deemed to be followed by the words “without
limitation” and, whenever the circumstances or the context requires, the
singular shall be construed as the plural, the masculine shall be construed as
the feminine and/or the neuter and vice versa. 
This Lease shall be interpreted and enforced without the aid of any
canon, custom or rule of law requiring or suggesting construction against
the party drafting or causing the drafting of the provision in question.

 

The captions in
this Lease are inserted only as a matter of convenience and for reference and
in no way define, limit or describe the scope of this Lease or the intent of
any provision hereof.

 

Section 26.12  Parties Bound.  The terms,
covenants, conditions and agreements contained in this Lease shall bind and
inure to the benefit of Landlord and Tenant and, except as otherwise provided
in this Lease, to their respective successors, and assigns.

 

Section 26.13  Memorandum of Lease. 
This Lease shall not be recorded; however, at Landlord’s request,
Landlord and Tenant shall promptly execute, acknowledge and deliver a
memorandum with respect to this Lease sufficient for recording and Landlord may
record the memorandum.  Within ten (10) days
after the end of the Term, Tenant shall enter into such documentation as is
reasonably required by Landlord to remove the memorandum of record.

 

Section 26.14  Counterparts.  This Lease may
be executed in 2 or more counterparts, each of which shall constitute an
original, but all of which, when taken together, shall constitute but one
instrument.

 

Section 26.15  Survival. Except as otherwise expressly provided in the Lease,
all obligations and liabilities of Landlord or Tenant to the other which
accrued before the expiration

 

52

 

or other termination of
this Lease, and all such obligations and liabilities which by their nature or
under the circumstances can only be, or by the provisions of this Lease may be,
performed after such expiration or other termination, shall survive the expiration
or other termination of this Lease. Without limiting the generality of the
foregoing, the rights and obligations of the parties with respect to any
indemnity under this Lease, and with respect to any Rent and any other amounts
payable under this Lease, shall survive the expiration or other termination of
this Lease for any period expressly provided for in the Lease or the applicable
statute of limitation if no time period is specified herein.

 

Section 26.16  Inability to Perform. 
This Lease and the obligation of Tenant to pay Rent and to perform all
of the other covenants and agreements of Tenant hereunder shall not be
affected, impaired or excused by any Unavoidable Delays.  Landlord shall use reasonable efforts to
promptly notify Tenant of any Unavoidable Delay which prevents Landlord from
fulfilling any of its obligations under this Lease.

 

Section 26.17  Reserved.

 

Section 26.18  Reserved.

 

Section 26.19  Financial Statements. 
Tenant agrees to deliver to Landlord within 120 days after the end of
the Tenant’s fiscal year, a balance sheet for Tenant as of the end of such
fiscal year and an income and loss statement for Tenant for such fiscal year.

 

Section 26.20  Changes to Real Property. Landlord shall have the following rights (a) to
rearrange, change, expand or contract the Common Areas; (b) to use Common
Areas while engaged in making improvements, repairs or alterations to the Real
Property; and (c) to do and perform such other acts and make such other
changes to the interior of the Building (including, without limitation, the
lobbies, entrances, passageways, doors, doorways, atriums, corridors,
elevators, stairs, common area restrooms, loading docks and parking garage) and
the exterior of the Building (including, without limitation, the façade, roof,
sidewalks, exterior windows and arcade), all as Landlord may from time to time
in its sole judgment deem to be appropriate. 
Landlord may exercise any or all of the foregoing rights without being
deemed to be guilty of an eviction, actual or constructive, or a disturbance of
Tenant’s business or use or occupancy of the Premises.  Tenant shall have no claim for damages,
indemnification or eviction (whether actual or constructive) against Landlord
nor shall Tenant be entitled to any diminution or abatement of Rent arising
from Landlord’s exercise of any or all of the foregoing rights.  Tenant acknowledges that it has no rights
to any development rights, air rights or comparable rights appurtenant to the
Real Property and Tenant consents, without further consideration, to any
utilization of such rights by Landlord.

 

Section 26.21  Tax Status of Beneficial Owner.  Tenant recognizes and acknowledges that Landlord
and/or certain beneficial owners of Landlord may from time to time qualify as
real estate investment trusts pursuant to Sections 856 et seq. of the Internal Revenue Code of
1986 as amended (the “Code”) and
that avoiding (a) the loss of such status, (b) the receipt of any
income derived under any provision of this Lease that does not constitute “rents
from real property” (in the case of real estate investment trusts), and (c) the
imposition of income, penalty or similar

 

53

 

taxes (each an “Adverse Event”)  is of material concern to Landlord and such beneficial
owners. In the event that this Lease or any document contemplated hereby could,
in the opinion of counsel to Landlord, result in or cause an Adverse Event,
Tenant agrees to cooperate with Landlord in negotiating an amendment or
modification thereof and shall at the request of Landlord execute and deliver
such documents reasonably required to effect such amendment or modification.
Any amendment or modification pursuant to this Article shall be structured
so that the economic results to Landlord and Tenant shall be substantially
similar to those set forth in this Lease without regard to such amendment or
modification. Without limiting any of Landlord’s other rights under this
Section, Landlord may waive the receipt of any amount payable to Landlord hereunder
and such waiver shall constitute an amendment or modification of this Lease
with respect to such payment. Tenant expressly covenants and agrees not to
enter into any sublease or assignment which provides for rental or other
payment for such use, occupancy, or utilization based in whole or in part on
the net income or profits derived by any person from the property leased, used,
occupied, or utilized (other than an amount based on a fixed percentage or
percentages of receipts or sales), and that any such purported sublease or
assignment shall be absolutely void and ineffective as a conveyance of any
right or interest in the possession, use, occupancy, or utilization of any part
of the Premises.

 

Section 26.22  Time of the Essence. Time is of the essence under this Lease.

 

Section 26.23  OFAC. Tenant represents and warrants to Landlord that Tenant
is not and shall not become a person or entity with whom Landlord is restricted
from doing business under any regulations of the Office of Foreign Asset Control
(“OFAC”) of the Department of the
Treasury (including, but not limited to, those named on OFAC’s Specially
Designated and Blocked Persons list) or under any statute, executive order
(including, but not limited to, the September 24, 2001, Executive Order
Blocking Property and Prohibiting Transactions With Persons Who Commit,
Threaten to Commit, or Support Terrorism), or other governmental action and is
not and shall not engage in any dealings or transaction or be otherwise
associated with such persons or entities.

 

ARTICLE
27

 

LETTER
OF CREDIT

 

Section 27.1 Form of Letter of
Credit; Letter of Credit Amount. 
Concurrently with Tenant’s execution of this Lease, Tenant shall deliver
to Landlord, as protection for the full and faithful performance by Tenant of
all of its obligations under this Lease and for all losses and damages Landlord
may suffer as a result of any breach or default by Tenant under this Lease, an
irrevocable and unconditional negotiable standby letter of credit (the “Letter of Credit”), in the form attached
hereto as Exhibit F-Form of Letter of Credit and containing the terms
required herein, payable in the State, running in favor of Landlord and issued
by a solvent, national banking association with a long term rating of BBB or
higher, in the amount set forth in Article 1 of this Lease (subject in all
cases, however, to the terms of Section 27.6) (the “Letter of Credit Amount”).  The Letter of Credit shall (i) be “callable” at sight,
irrevocable and unconditional (but Landlord agrees not to make any call unless
there is an Event of Default by Tenant), (ii) be maintained in effect, whether through renewal or extension, for the
period from the

 

54

 

Commencement
Date and continuing until the date (the “LC
Expiration Date”) that is sixty (60) days after the expiration of
the Term (as the same may be extended), and Tenant shall deliver a new Letter
of Credit or certificate of renewal or extension to Landlord at least thirty
(30) days prior to the expiration of the Letter of Credit then held by
Landlord, without any action whatsoever on the part of Landlord, (iii) be
fully assignable by Landlord, its successors and assigns, (iv) permit
partial draws and multiple presentations and drawings, and (v) be otherwise
subject to the Uniform Customs and Practices for Documentary Credits (1993
Revision) International Chamber of Commerce Publication #500. If the Term of
this Lease is extended, not later than thirty (30) days prior to the
commencement of the extension Term, Tenant shall deliver to Landlord a new
Letter of Credit or certificate of renewal or extension evidencing the LC
Expiration Date sixty (60) days after the expiration of the extended Term. The
form and terms of the Letter of Credit and the bank issuing the same (the “Bank”) shall be acceptable to Landlord, in
Landlord’s sole discretion. Landlord, or its then managing agent, shall have
the right to draw down an amount up to the face amount of the Letter of Credit
if any of the following shall have occurred or be applicable:  (1) such amount is due to Landlord under
the terms and conditions of this Lease, or (2) Tenant has filed a
voluntary petition under the U. S. Bankruptcy Code or any state bankruptcy code
(collectively, “Bankruptcy Code”),
or (3) an involuntary petition has been filed against Tenant under the
Bankruptcy Code, or (4) the Bank has notified Landlord that the Letter of
Credit will not be renewed or extended through the LC Expiration Date.  The Letter of Credit will be honored by the
Bank regardless of whether Tenant disputes Landlord’s right to draw upon the
Letter of Credit.

 

Section 27.2         Transfer of Letter of Credit by Landlord.  The Letter of Credit shall also provide that
Landlord, its successors and assigns, may, at any time and without notice to
Tenant and without first obtaining Tenant’s consent thereto, transfer (one or
more times) all or any portion of its interest in and to the Letter of Credit
to another party, person or entity, regardless of whether on not such transfer
is separate from or as a part of the assignment by Landlord of its rights and
interests in and to this Lease.  In the
event of a transfer of Landlord’s interest in the Building, Landlord shall
transfer the Letter of Credit to the transferee and thereupon Landlord without
any further agreement between the parties, be released by Tenant from all
liability therefor, and it is agreed that the provisions hereof shall apply to
every transfer or assignment of the whole or any portion of said Letter of
Credit to a new landlord.  In connection
with any such transfer of the Letter of Credit by Landlord, Tenant shall, at
Tenant’s expense, execute and submit to the Bank such applications, documents
and instruments as may be necessary to effectuate such transfer, and Tenant shall
be responsible for paying the Bank’s transfer and processing fees in connection
therewith.

 

Section 27.3         Maintenance
of Letter of Credit by Tenant. If, as a result of any drawing by
Landlord on the Letter of Credit, the amount of the Letter of Credit shall be
less than the Letter of Credit Amount, Tenant shall, within ten (10) Business
Days thereafter, provide Landlord with additional letter(s) of credit in
an amount equal to the deficiency, and any such additional letter(s) of
credit shall comply with all of the provisions of this Article, and if Tenant
fails to comply with the foregoing, notwithstanding anything to the contrary
contained in Section 15.1 of this Lease, the same shall constitute an
Event of Default by Tenant.  Tenant
further covenants and warrants that it will neither assign nor encumber the
Letter of Credit or any part

 

55

 

thereof and that neither Landlord nor
its successors or assigns will be bound by any such assignment, encumbrance, attempted
assignment or attempted encumbrance. 
Without limiting the generality of the foregoing, if the Letter of
Credit expires earlier than the LC Expiration Date, Landlord will accept a
renewal thereof (such renewal letter of credit to be in effect and delivered to
Landlord, as applicable, not later than thirty (30) days prior to the
expiration of the Letter of Credit), which shall be irrevocable and
automatically renewable as above provided through the LC Expiration Date upon
the same terms as the expiring Letter of Credit or such other terms as may be
acceptable to Landlord in its reasonable discretion. However, if the Letter of
Credit is not timely renewed, or if Tenant fails to maintain the Letter of
Credit in the amount and in accordance with the terms set forth in this
Article, Landlord shall have the right to present the Letter of Credit to the
Bank in accordance with the terms of this Article, and the proceeds of the
Letter of Credit may be applied by Landlord against any Rent payable by Tenant
under this Lease that is not paid when due and/or to pay for all actual
reasonable losses and damages incurred by Landlord as a result of any uncured
Event of Default Tenant under this Lease. 
Any unused proceeds shall constitute a cash security deposit held by
Landlord and need not be segregated from Landlord’s other assets. Landlord
agrees to pay to Tenant within thirty (30) days after the LC Expiration Date
the amount of any proceeds of the Letter of Credit received by Landlord and not
applied against any Rent payable by Tenant under this Lease that was not paid
when due or used to pay for any losses and/or damages suffered by Landlord (or
reasonably estimated by Landlord that it will suffer) as a result of an Event
of Default by Tenant under this Lease; provided, however, that if prior to the
LC Expiration Date a voluntary petition is filed by Tenant, or an involuntary
petition is filed against Tenant by any of Tenant’s creditors, under the
Bankruptcy Code, then Landlord shall not be obligated to make such payment in
the amount of the unused Letter of Credit proceeds until either all preference
issues relating to payments under this Lease have been resolved in such
bankruptcy or reorganization case or such bankruptcy or reorganization case has
been dismissed.

 

Section 27.4         Landlord’s
Right to Draw Upon Letter of Credit. Tenant hereby acknowledges and
agrees that Landlord is entering into this Lease in material reliance upon the
ability of Landlord to draw upon the Letter of Credit upon the occurrence of any Event of Default on the part of
Tenant under this Lease.  If Tenant shall
breach any provision of this Lease or otherwise be in default hereunder and
such breach or default becomes an Event of Default, Landlord may (acting
reasonably and in good faith), but without obligation to do so, and without
notice to Tenant, draw upon the Letter of Credit, in part or in whole, to cure
any Event of Default of Tenant (which Event of Default is curable by the
payment of money) and/or to compensate Landlord
for any and all actual, reasonable, out-of-pocket damages of any kind or nature
sustained or which Landlord reasonably and demonstrably estimates that it will
sustain resulting from Tenant’s breach or default.  The use, application or retention of the
Letter of Credit, or any portion thereof, by Landlord shall not prevent
Landlord from exercising any other right or remedy provided by this Lease or by
any applicable law, it being intended that Landlord shall not first be required
to proceed against the Letter of Credit, and shall not operate as a limitation
on any recovery to which Landlord may otherwise be entitled.  Tenant agrees not to interfere in any way
with payment to Landlord of the proceeds of the Letter of Credit, either prior
to or following a “draw” by Landlord of any portion of the Letter of Credit,
regardless of whether any dispute exists between Tenant and Landlord as to
Landlord’s right to draw upon the Letter of Credit.  No

 

56

 

condition or term of this Lease shall
be deemed to render the Letter of Credit conditional to justify the issuer of
the Letter of Credit in failing to honor a drawing upon such Letter of Credit
in a timely manner.  Tenant agrees and
acknowledges that (a) the Letter of Credit constitutes a separate and
independent contract between Landlord and the Bank, (b) Tenant is not a
third party beneficiary of such contract, (c) Tenant has no property
interest whatsoever in the Letter of Credit or the proceeds thereof, and (d) in
the event Tenant becomes a debtor under any chapter of the Bankruptcy Code,
neither Tenant, any trustee, nor Tenant’s bankruptcy estate shall have any
right to restrict or limit Landlord’s claim and/or rights to the Letter of
Credit and/or the proceeds thereof by application of Section 502(b)(6) of
the U. S. Bankruptcy Code or otherwise.

 

Section 27.5         Letter of Credit Not a Security
Deposit. 
Landlord and Tenant acknowledge and agree
that in no event or circumstance shall the Letter of Credit or any renewal
thereof or any proceeds thereof be deemed to be or treated as a “security
deposit” under the laws of the State. The parties hereto (A) recite that
the Letter of Credit is not intended to serve as a security deposit and any and
all other laws, rules and regulations applicable to security deposits in
the commercial context (“Security Deposit
Laws”) shall have no applicability or relevancy thereto and (B) waive
any and all rights, duties and obligations either party may now or, in the
future, will have relating to or arising from the Security Deposit Laws.

 

Section 27.6         Reduction.  If no Event of Default then
exists and Tenant complies with the provisions of this Section, (i) on the
second (2nd) anniversary of the Rent Commencement Date, the amount of
the Letter of Credit or cash security shall be reduced to $300,000, (ii) provided
the amount of the Letter of Credit or cash security shall have previously been
reduced pursuant to the preceding clause (ii), on the third (3rd) anniversary of the Rent Commencement Date the amount of the Letter of Credit or cash
security shall be reduced to $225,000, (iii) provided the amount of the
Letter of Credit or cash security shall have previously been reduced pursuant
to the preceding clauses (i) and (ii), on the fourth (4th) anniversary of the Rent Commencement Date the amount of the Letter of Credit or cash
security shall be reduced to $150,000 and (iv) provided the amount of the
Letter of Credit or cash security shall have previously been reduced pursuant
to the preceding clauses (i) through (iii), on the fifth (5th)  anniversary of the Rent Commencement Date the amount of the Letter of Credit or cash
security shall be reduced to $75,000.  The security shall be reduced as
follows: (A) if the security is in the form of cash, Landlord shall, within
10 Business Days following notice by Tenant to Landlord that Tenant is entitled
to reduce the security pursuant to this Section, deliver to Tenant the amount
by which the cash security is reduced, or (B) if the security is in the
form of a Letter of Credit, Tenant shall deliver to Landlord a consent to an
amendment to the Letter of Credit (which amendment must be reasonably
acceptable to Landlord in all respects), reducing the amount of the Letter of
Credit by the amount of the permitted reduction, and Landlord shall execute
such consent and such other documents as are reasonably necessary to reduce the
amount of the Letter of Credit in accordance with the terms hereof.  If
Tenant delivers to Landlord a consent to an amendment to the Letter of Credit
in accordance with the terms hereof, Landlord shall, within 10 Business Days
after delivery of such consent, either (1) provide its reasonable
objections to such amendment or (2) execute such consent in accordance
with the terms hereof.

 

57

 

ARTICLE 28

 

OPTION TO EXPAND

 

Section 28.1         Exercise of Option.              Tenant shall, provided (i) no
Event of Default exists on the date Tenant notifies Landlord of its intent to
exercise this right, and (ii) Tenant has not effected an assignment of the
Lease or sublet more than twenty-five percent (25%) of the Premises pursuant to
a transaction requiring Landlord’s consent, have the option to add to the
Premises an additional area containing approximately 2,115 square feet of
rentable area on the sixth (6th) floor of the Building, as
indicated on the floor plan attached as Exhibit A (being identified
as the “Option Space”).  Landlord shall determine the anticipated
delivery date thereof, which shall be no earlier than January 1, 2013 and
no later than March 1, 2015 (the “Anticipated Option Space
Delivery Date”), and notify Tenant no later than eighteen (18)
months prior to the date so determined. 
Tenant may exercise this option to expand by giving written notice to
Landlord no earlier than fifteen (15) months, nor later than twelve (12)
months, preceding the Anticipated Option Space Delivery Date.  If Tenant gives notice of its intent to
exercise said option to expand the Premises to include the Option Space,
Landlord shall deliver the Option Space to Tenant on the Anticipated Option
Space Delivery Date.  Tenant may not
lease less than all of the Option Space. 
Tenant’s right to exercise the option on the Option Space (the “Option”) shall be personal to Tenant, provided, however,
that the Option shall transfer with the other Lease rights if as and when
Tenant enters into any sublease (x) to a Related Entity or (y) that does
not otherwise require Landlord’s consent.

 

Section 28.2         Conditions.           Tenant’s exercise of said option shall be subject
to the following conditions: (i) Tenant shall accept the Option Space as
part of the Premises, in its then “as is” condition; (ii) the term of the
Lease with regard to the Option Space shall commence on the date on which
Landlord delivers possession of the Option Space to Tenant (the “Option Space Commencement Date”), and said term shall be
coterminous with the term of the Lease and any extension thereof; (iii) Tenant’s
obligation to pay Fixed Rent for the Option Space shall commence sixty (60)
days following the Option Space Commencement Date or if earlier, the date on
which Tenant occupies the Option Space for the actual conduct of business (the “Option Space Rent Commencement Date”); (iv) the Fixed
Rent for the Option Space shall be an amount equal to the then escalated Fixed
Rent for the Premises (on a per square foot basis) which shall escalate
thereafter on the same schedule as the rest of the Premises; (v) Landlord’s
contribution with respect thereto shall be $42,300, computed as the product of
$20.00 and the Area of the Option Space and (vi) Tenant’s Proportionate Share
shall be revised and increased to 4.95% to reflect the addition of the Option
Space to the Premises, such revised percentage to become effective as of the
Option Space Rent Commencement Date, with appropriate pro rata adjustments
being made in the calculation of Tenant’s Proportionate Share for the calendar
year in which such revised percentage becomes effective (and the Base Year
shall be calendar year 2009); and (vi) all other terms and conditions of
the Lease shall be generally applicable to the Option Space, except as the same
are specifically modified by the mutual agreement of the parties at that time.

 

58

 

Section 28.3         Late Delivery.  Notwithstanding the foregoing,
in the event Landlord is unable to deliver possession of the Option Space to
Tenant on the Anticipated Option Space Delivery Date, for any reason or
condition beyond Landlord’s reasonable control, then Landlord, its agents and
employees, shall not be liable or responsible for any claims, damages, or
liabilities in connection therewith or by reason thereof, nor shall the
obligation of Tenant to accept said Option Space be excused, except that the
Option Space Commencement Date shall not occur until the date Landlord delivers
possession of the Option Space to Tenant. 
In such event, Landlord shall use commercially reasonable efforts to
make the Option Space available to Tenant at the earliest possible time, and
Landlord shall deliver notice to Tenant of the anticipated delivery date of the
Option Space within five (5) Business Days after Landlord knows that the
Anticipated Option Space Delivery Date has changed.  If Landlord is unable to deliver the Option
Space to Tenant for any reason (other than one proximately caused by Tenant) by
the date which is six (6) months following the Anticipated Option Space
Delivery Date, then Tenant may by notice to Landlord given prior to the actual
Option Space Commencement Date, rescind its exercise of the Option, and on
delivery of that notice, Tenant shall have no further obligation with respect
to the Option Space.

 

ARTICLE
29

 

OPTION TO TERMINATE

 

Section 29.1         Option
To Terminate.  Subject to Section 29.2
following, Tenant shall have, and is hereby given, the option to terminate this
Lease effective as of the last day of the third (3rd) Lease Year, the fifth (5th) Lease Year or the
seventh (7th) Lease Year (as
chosen by Tenant) (the “Termination Date”),
provided there exists no Event of Default on the date Tenant notifies Landlord
of its intent to exercise this option and Tenant has not assigned the Lease in
a transaction requiring Landlord’s consent. 
Tenant may exercise this option to terminate only by serving upon
Landlord written notice of such election (the “Termination
Notice”), with a copy of such Termination Notice to all Lessors
and/or Mortgagees, provided that Landlord has designated such Lessors and
Mortgagees in writing by notice from Landlord to Tenant, no later than twelve
(12) months preceding the Termination Date, nor earlier than fifteen (15)
months preceding the Termination Date (the “Required
Termination Election Date”). 
Tenant shall, as a condition to such election, pay to Landlord a
termination fee in the amount of (1) the Unamortized Transaction Costs
Amount (as hereinafter defined), plus (2) the product of four (4) multiplied
by the Fixed Rent monthly installment, Tax Estimate monthly installment and
Expense Estimate monthly installment which would be due and owing for the
calendar month immediately following the Termination Date if the Lease had not
been terminated (collectively, the “Termination
Fee”).  Upon written request
made no earlier than six (6) months prior to the Required Termination
Election Date, Landlord shall advise Tenant of the dollar amount of component (1) of
the Termination Fee.  The Termination Fee
shall be due and owing along with the Termination Notice, and shall be a
condition to the effectiveness thereof. 
The portion of component (2) attributable to Tax Estimate and
Expense Estimate shall be based upon an estimate provided by Landlord upon
Tenant’s request and shall be subject to a true up as soon as reasonably
possible following the Termination Date. 
The “Unamortized Transaction Costs
Amount” shall mean Landlord’s unamortized upfront (including those
incurred with respect to the Option Space) transaction costs (amortized at 10%
over the Term), which costs include

 

59

 

leasing
commissions, improvement allowances, free rent (or similar concessions, which
for purposes hereof, shall be deemed to include the rent for the Additional
Premises which would have been paid had the rent for the Additional Premises
commenced on the Rent Commencement Date as opposed to the first day of the
fourth (4th) Lease Year) and
actual, reasonable, out-of-pocket attorneys fees.  In the event Tenant elects to terminate the
Lease pursuant to this Section 29.1, Tenant shall, in addition, remain
fully obligated for all Rent and other charges, including Tenant’s prorated
share of increases in Operating Expenses and Taxes incurred under the Lease
through the Termination Date, including amounts billed subsequent to the
Termination Date and properly allocable to the period prior to the Termination
Date.  In the event Tenant properly
exercises this option, Landlord shall prepare and the parties shall execute a
Termination of Lease Agreement within fifteen (15) days following the date on
which Tenant exercises its option to terminate.

 

Section 29.2         Sale
of Company Requirement.        Tenant’s
rights pursuant to Section 29.1 above are contingent upon the completion
prior to tender of the Termination Notice of a transaction pursuant to which
Tenant is merged with another corporation or other entity or all or
substantially all of the assets of Tenant are sold to another corporation or
another entity when the purchaser is unrelated to Tenant.  Tenant shall certify the existence of such a
transaction in the Termination Notice and provide reasonable substantiation
thereof.

 

[SIGNATURES FOLLOW]

 

60

 

IN WITNESS WHEREOF, Landlord and Tenant have executed
this Lease as of the day and year first above written.

 

LANDLORD:

 

 

	
  1255 23rd
  STREET, L.P.,

  	
   

  
	
  a District of Columbia
  limited partnership

  	
   

  
	
   

  	
   

  
	
  By:

  	
  1255 23rd Street
  GP, L.L.C.,

  	
   

  
	
   

  	
  a Delaware
  limited liability company,

  	
   

  
	
   

  	
  its General
  Partner

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Michael B. Benner

  	
   

  
	
   

  	
  Name:

  	
  Michael B.
  Benner, Vice President

  	
   

  
	
   

  	
  Title:

  	
  Authorized
  Person

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  TENANT:

  	
   

  
	
   

  	
   

  
	
  CONVIO, INC.,

  	
   

  
	
  a Delaware
  corporation

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  James R. Offerdahl

  	
   

  
	
  Name:

  	
  JR Offerdahl

  	
   

  
	
  Title:

  	
  CFO

  	
   

  

 

61

 

Exhibit A

 

Floor Plan

 

The floor plan which follows is intended solely to
identify the general location of the Original Premises, Additional Premises and
the Option Space, and should not be used for any other purpose.  All areas, dimensions and locations are
approximate, and any physical conditions indicated may not exist as shown.

 

 

Exhibit A-1

 

Land

 

All of that certain lot or parcel of land situated, lying and being in
the District of Columbia more particularly described as:

 

Lot numbered Eighty-six (86) in Square numbered Fifty (50) in a
subdivision made by Tasea Investment Company and Square 50 Associates as per
plat recorded in Liber 172 at folio 141 
in the Office of the Surveyor for the District of Columbia.

 

A-1

 

Exhibit B

 

Definitions

 

Base Building Systems: The structural components of the Building
and the mechanical, electrical, plumbing, sanitary, sprinkler, heating,
ventilation and air conditioning, security, life-safety and other service systems
or facilities of the Building up to the point of connection for localized
distribution to the Premises (it being agreed that supplemental HVAC systems of
tenants, and the mechanical, electrical, plumbing, sanitary, sprinkler,
heating, ventilation and air conditioning, security, life-safety and other
service systems or facilities of the Building from the point of connection to
the base Building risers, feeders, panelboards, etc. for localized distribution
to the Premises are not Base Building Systems) and the mechanical, electrical,
plumbing, heating, ventilation and air conditioning, elevators and other
service systems or facilities servicing the Common Areas.

 

Base Rate: 
The annual rate of interest publicly announced from time to time by
Citibank, N.A., or its successor, in New York, New York as its “base
rate” or “prime rate” (or such other term as may be used by
Citibank, N.A., from time to time, for the rate presently referred to as
its “base rate”).

 

Business Days: 
All days, excluding Saturdays, Sundays, Holidays and other days normally
observed as holidays by landlords of other Comparable Buildings.

 

Business Hours: 
8:00 a.m. to 8:00 p.m. on weekdays and 9:00 a.m. to 6:00 p.m.
on Saturdays, excluding Holidays.

 

Code:  The Internal
Revenue Code of 1986, as amended, and the regulations promulgated thereunder,
as amended.

 

Common Areas: 
The lobby, Building Parking Facility, the rooftop terrace, the fitness
or health center, plaza and sidewalk areas and other similar areas of general
access at the Building or designated for the benefit of Building tenants and
the areas on multi-tenant floors in the Building devoted to corridors, elevator
lobbies, restrooms (other than those that are wholly contained within a tenant’s
premises), and other similar facilities serving the Premises.

 

Comparable Buildings: 
First-class office buildings of comparable age, size and location in the
west end and central business district of the District of Columbia.

 

Deficiency: 
The difference between (a) the Fixed Rent and Additional Rent for
the period which otherwise would have constituted the unexpired portion of the
Term (assuming the Additional Rent for each year thereof to be the same as was
payable for the year immediately preceding such termination or re-entry), and (b) the
net amount, if any, of rents collected under any reletting effected pursuant to
the provisions of the Lease for any part of such period (after first deducting
from such rents all reasonable expenses incurred by Landlord in connection with
the termination of this Lease, Landlord’s re-entry upon the Premises and such
reletting, including repossession costs, brokerage commissions, attorneys’ fees
and disbursements, and alteration costs).

 

B-1

 

Excluded Expenses:  (a) Taxes;
(b) franchise or income taxes imposed upon Landlord; (c) mortgage
amortization and interest; (d) leasing commissions; (e) the cost of
tenant installations and decorations incurred in connection with preparing
space for any Building tenant, including work letters and concessions; (f) rental
payments made under any ground lease, except to the extent such rental payments
represent Taxes or the provision of goods and/or services that, if provided by
Landlord, would be includable in Operating Expenses; (g) management fees
to the extent in excess of 3% of the gross rentals and other revenues collected
for the Real Property; (h) wages, salaries and benefits paid to or taxes
paid for any persons not directly involved with the management of the Building
or the oversight thereof; (i) legal and accounting fees relating to (A) disputes
with tenants, prospective tenants or other occupants of the Building, (B) disputes
with purchasers, prospective purchasers, mortgagees or prospective mortgagees
of the Building or the Real Property or any part of either, or (C) negotiations
of leases, contracts of sale or mortgages; (j) costs
of any utilities, amenities, service or increased level of service provided to
a tenant of the Building that are not provided or available to Tenant
(including any overtime premiums to perform such work or services); (k) costs that are reimbursed out
of insurance, warranty or condemnation proceeds, or which are reimbursable by
Tenant or other tenants other than pursuant to an expense escalation clause; (l)
costs in the nature of penalties or fines; (m) costs for services,
supplies or repairs paid to any related entity in excess of costs that would be
payable in an “arm’s length” or unrelated situation for comparable services,
supplies or repairs; (n) allowances, concessions or other costs and
expenses of improving or decorating any demised or demisable space in the
Building; (o) appraisal, advertising and promotional expenses in
connection with leasing of the Building; (p) the costs of installing,
operating and maintaining a specialty improvement, including a cafeteria,
lodging or private dining facility, or an athletic, luncheon or recreational
club unless Tenant is permitted to make use of such facility without additional
cost or on a subsidized basis consistent with other users; (q) any costs
or expenses (including fines, interest, penalties and legal fees) arising out
of Landlord’s failure to timely pay Operating Expenses or Taxes; (r) costs
incurred in connection with the removal, encapsulation or other treatment of
asbestos or any other Hazardous Materials (classified as such on the Effective
Date) existing in the Premises as of the date hereof; (s) the cost of
capital improvements other than those expressly included in Operating Expenses
pursuant to Section 7.1; (t) depreciation and amortization of capital
improvements, except to the extent included in Section 7.1; (u) costs
incurred by Landlord for the original development and construction of the
Building; (v) any costs actually reimbursed under any service contracts or
under the warranty of any general contractor, subcontractor or supplier and
realized by Landlord; and (w) fees paid by Landlord to the Operator.

 

Governmental
Authority:  The United States of America, the State or any
political subdivision, agency, department, commission, board, bureau or
instrumentality of any of the foregoing, now existing or hereafter created,
having jurisdiction over the Real Property.

 

Hazardous Materials: 
Any substances, materials or wastes currently or in the future deemed or
defined in any Requirement as “hazardous substances,” “toxic substances,” “contaminants,”
“pollutants” or words of similar import.

 

B-2

 

Holidays:   New Year’s Day, Dr. Martin Luther King, Jr.
Day, Presidents’ Day, Memorial Day, Independence Day, Labor Day, Columbus Day,
Veterans Day, Thanksgiving day and Christmas day and any other national holiday
promulgated by a Presidential Executive Order or Congressional Act.

 

HVAC System: The Base Building System designed to
provide heating, ventilation and air conditioning.

 

Landlord Party(ies): 
Landlord, Landlord’s Agent, each Mortgagee and Lessor, and each of their
respective direct and indirect partners, officers, shareholders, directors,
members, managers, trustees, beneficiaries, employees, principals, contractors,
servants, agents, and representatives.

 

Lease Year: 
The first (1st) Lease Year shall begin on the Rent
Commencement Date and shall end on the last day of the calendar month preceding
the month in which the first (1st)
anniversary of the Rent Commencement Date occurs.  Each succeeding Lease Year shall commence on
the day following the end of the preceding Lease Year and shall extend for
twelve (12) consecutive months; provided, however, that the last Lease Year
shall expire on the Expiration Date.

 

Lessor:  A
lessor under a Superior Lease.

 

Losses: 
Any and all losses, liabilities, damages, claims, judgments, fines,
suits, demands, costs, interest and expenses of any kind or nature (including
reasonable attorneys’ fees and disbursements) incurred in connection with any
claim, proceeding or judgment and the defense thereof, and including all costs
of repairing any damage to the Premises or the Building or the appurtenances of
any of the foregoing to which a particular indemnity and hold harmless
agreement applies.

 

Mortgage(s): 
Any mortgage, trust indenture or other financing document which may now
or hereafter affect the Premises, the Real Property, the Building or any Superior
Lease and the leasehold interest created thereby, and all renewals, extensions,
supplements, amendments, modifications, consolidations and replacements thereof
or thereto, substitutions therefor, and advances made thereunder.

 

Mortgagee(s): 
Any mortgagee, trustee or other holder of a Mortgage.

 

Prohibited Use: 
Any use or occupancy of the Premises that in Landlord’s reasonable
judgment would: (a) cause damage to the Building or any equipment,
facilities or other systems therein; (b) impair the appearance of the
Building; (c) interfere with the efficient and economical maintenance,
operation and repair of the Premises or the Building or the equipment,
facilities or systems thereof; (d) adversely affect any service provided
to, and/or the use and occupancy by, any Building tenant or occupants; (e) violate
the certificate of occupancy issued for the Premises or the Building; (f) materially
and adversely affect the first-class image of the Building, or (g) result
in protests or civil disorder or commotion at, or other disruptions of the
normal business activities in, the Building. Prohibited
Use also includes the use of any part of the Premises for: (i) a
restaurant or bar; (ii) the preparation, consumption, storage, manufacture

 

B-3

 

or sale of food or
beverages (except in connection with vending machines (provided that each
machine, where necessary, shall have a waterproof pan thereunder and be
connected to a drain) and/or warming kitchens installed for the use of Tenant’s
employees only), liquor, tobacco or illicit drugs; (iii) the business of
photocopying, multilith or offset printing (except photocopying in connection
with Tenant’s own business); (iv) a school or classroom; (v) lodging
or sleeping; (vi) the operation of retail facilities (meaning a business
whose primary patronage arises from the generalized solicitation of the general
public to visit Tenant’s offices in person without a prior appointment) of a
savings and loan association or retail facilities of any financial, lending,
securities brokerage or investment activity; (vii) a payroll office
serving persons whose primary place of work is not the Premises; (viii) a
barber, beauty or manicure shop; (ix) an employment agency or similar
enterprise; (x) offices of any Governmental Authority, any foreign
government, the United Nations, or any agency or department of the foregoing;
(xi) the manufacture, retail sale, storage of merchandise or auction of
merchandise, goods or property of any kind to the general public which could
reasonably be expected to create a volume of pedestrian traffic substantially
in excess of that normally encountered in the Premises; (xii) the
rendering of medical, dental or other therapeutic or diagnostic services;
(xiii) any illegal purposes or any activity constituting a nuisance; or
(xiv) a use that might be reasonably anticipated to attract a volume, frequency
or type of visitor or employee to the Building which is not consistent with the
standards of a high quality office building or that will impose an excessive
demand on or use of the facilities or services of the Building..

 

Requirements: 
All present and future laws, rules, orders, ordinances, regulations,
statutes, requirements, codes and executive orders, extraordinary and ordinary
of (i) all Governmental Authorities, including the Americans With
Disabilities Act, 42 U.S.C. §12101 (et seq.), and any law of like import, and
all rules, regulations and government orders with respect thereto, and any of
the foregoing relating to Hazardous Materials, environmental matters, public
health and safety matters and landmarks protection, (ii) any applicable fire
rating bureau or other body exercising similar functions, affecting the Real
Property or the maintenance, use or occupation thereof, or any street, avenue
or sidewalk comprising a part of or in front thereof or any vault in or under
the same, (iii) all requirements of all insurance bodies affecting the
Premises, and (iv) utility service providers.

 

Rules and Regulations: 
The rules and regulations annexed to and made a part of this Lease
as Exhibit E-Rules and Regulations, as they may be reasonably
modified from time to time by Landlord.

 

Specialty Alterations: 
Alterations which are not standard office installations, such as commercial
kitchens (other than a pantry installed for the use of Tenant’s employees only
and of the type normally found in the space of office tenants in Comparable
Buildings), executive bathrooms, raised computer floors, computer room
installations, supplemental HVAC equipment and components, safe deposit boxes,
vaults, libraries or file rooms requiring reinforcement of floors, internal
staircases, slab penetrations, conveyors, dumbwaiters, non-Building standard
life safety systems, security systems or lighting and other Alterations of a
similar character.  All Specialty
Alterations are Above Building Standard Installations.

 

State: The District of Columbia

 

B-4

 

Substantial Completion: 
As to any construction performed by any party, “Substantial Completion”
or “Substantially Completed” means that such work has been completed, as
reasonably determined by Landlord’s architect, in accordance with (a) the
provisions of this Lease applicable thereto, (b) the plans and
specifications for such work, and (c) all applicable Requirements, in all
cases, subject only to minor details of construction, decoration and mechanical
adjustments, if any, the noncompletion of which does not materially interfere
with Tenant’s use of the Premises or which in accordance with good construction
practices should be completed after the completion of other work in the
Premises or Building.

 

Superior Lease(s): 
Any ground or underlying lease of the Real Property or any part thereof
heretofore or hereafter made by Landlord and all renewals, extensions,
supplements, amendments, modifications, consolidations, and replacements
thereof.

 

Tenant Delay(s): 
To the extent that Landlord has an obligation to design, construct,
repair, rebuild, restore, install, order, obtain or complete any Landlord
Improvements, Tenant Improvements or any other items or improvements at the
Building, a delay in Landlord’s completion thereof caused by:

 

a. Tenant’s request for value engineering or any
changes to any drawings, plans or specifications for the Premises
(notwithstanding Landlord’s approval of such changes) after Landlord and Tenant
have approved such drawings, plans or specifications;

 

b. Tenant’s request for improvements,
items, materials, finishes or installations that are not consistent with the
standards to which the Base Building Systems have been designed;

 

c. Tenant’s request for improvements,
items, materials, finishes or installations that are not available as needed to
meet Landlord’s (or Landlord’s contractors’) schedule for Substantial
Completion, provided that Landlord (or Landlord’s contractors) shall notify
Tenant of any potential long lead items to the extent known to Landlord (or
Landlord’s contractors) at the time such material, finish or installation is
requested or as soon as reasonably possible thereafter and give Tenant two (2) Business
Days to change such request;

 

d. Tenant’s request for or design of Tenant
Improvements that include items or improvements not typically found in the
office space at Comparable Buildings;

 

e. the ordering, delivery or installation of any of
Tenant’s Equipment (as defined in Exhibit C-Work Agreement);

 

f. if Tenant’s architect or designer prepares any
drawings, plans or specifications for the Premises, any such drawings, plans or
specifications being (i) incomplete, inaccurate or otherwise deficient, or
(ii) deviating from the approved space plan, applicable code requirements
and/or any Requirements;

 

g.  Tenant’s or
Tenant’s architect’s, agent’s, representative’s or contractor’s interference
with the work of Landlord or Landlord’s contractor;

 

B-5

 

h.  Tenant’s
failure to fully and timely comply with the deadlines and other terms set forth
in the Lease and/or Exhibit C-Work Agreement; or

 

i.  any other act
or omission by Tenant or any employee, architect, agent, representative or
contractor of Tenant constituting a Tenant Delay under the terms of this Lease
or any exhibit, rider, annex, schedule, work letter or other document or
agreement entered in connection with this Lease, attached to this Lease or
incorporated in this Lease by reference.

 

Tenant Party(ies): 
Tenant and any subtenants or occupants of the Premises and their
respective agents, contractors, subcontractors, employees, invitees or
licensees.

 

Tenant’s Property: 
Tenant’s movable fixtures and movable partitions, telephone and other
equipment, computer systems, trade fixtures, furniture, furnishings, and other
items of personal property which are removable without material damage to the
Premises or the Building.

 

Unavoidable Delays: 
Landlord’s inability to fulfill or delay in fulfilling any of its
obligations under this Lease expressly or impliedly to be performed by Landlord
or Landlord’s inability to make or delay in making any repairs, additions,
alterations, improvements or decorations or Landlord’s inability to supply or
delay in supplying any equipment or fixtures, if Landlord’s inability or delay
is due to or arises by reason of strikes, labor troubles or by accident, or by
any cause whatsoever beyond Landlord’s reasonable control, including
governmental preemption in connection with a national emergency, permitting and
inspection delays beyond the normal applicable waiting period, Requirements or
shortages, or unavailability of labor, fuel, steam, water, electricity or
materials, or delays caused by Tenant or other tenants, mechanical breakdown,
acts of God, enemy action, civil commotion, fire or other casualty.

 

B-6

 

Exhibit C

 

Work Agreement

 

This Work Agreement is a part of the Lease to which it
is attached. In the event of any conflict between the terms of this Work
Agreement and the terms of the Lease, the terms of this Work Agreement shall
control.

 

Article 1
- Definitions

 

1.             Definitions.

 

1.1           Reserved.

 

1.2           “Business Day”
has the meaning given such term in the Lease.

 

1.3           “Change Order”
means any change in any of Tenant’s Plans after Landlord has approved any such
plan and/or any change in the work or materials to be included in the Tenant
Improvements.

 

1.4           “Commencement Date”
has the meaning given such term in the Lease.

 

1.5           “Comparable Building”
has the meaning given such term in the Lease.

 

1.6           “Contractor”
means the general contractor selected by Tenant in accordance with the terms of
this Work Agreement to construct and install the Tenant Improvements.

 

1.7           “Construction
Costs” means all costs in the permitting, demolition, construction and
installation of the Tenant Improvements and acquiring the materials for the
Tenant Improvements.

 

1.8           “Effective Date”
has the meaning given such term in the Lease.

 

1.9           “Engineers”
means the mechanical, electrical, plumbing and structural and engineers and
other licensed third-parties selected by Tenant to assist in the preparation of
Tenant’s Plans.

 

1.10         “Essential Subs”
means those subcontractors to be specifically designated by Landlord acting
reasonably for purposes of working on the Building mechanical, energy
management, structural, exterior windows (including window removal and
reinstallation for hoisting purposes), roof (excluding HVAC), sprinkler and
fire and life safety systems.

 

1.11         “Final Space Plan”
means a detailed space plan for the Tenant Improvements prepared by Tenant’s
Architect, which space plan shall be substantially in conformance with the
Preliminary Plan approved by Landlord and any updates or changes thereto
approved by

 

C-1

 

Landlord and shall
contain the information and otherwise comply with the requirements set forth on
Annex 2 attached hereto.

 

1.12         “Improvement
Costs” means, collectively, (i) the Planning Costs; (ii) the
Construction Costs; and (iii) Landlord’s Fee.

 

1.13         “Landlord’s
Contribution” has the meaning given such term in the Lease.

 

1.14         “Landlord’s
Fee” means a fee payable to Landlord equal to 3% of the
Construction Costs if Tenant elects to retain Landlord’s affiliate Tishman
Speyer Properties (“TSP”) as its
project manager, and 1% of the Construction Costs if Tenant does not so elect..

 

1.15         “Landlord’s Representative” means Rustom Cowasjee, whose
address is Tishman Speyer Properties, 1875 Eye Street, NW, Suite 300, Washington, DC
20006 and whose telephone number is  (202) 420-2123 and whose telecopier number is
(202) 628-5866.

 

1.16         “Permits” means
all necessary permits in connection with the Tenant Improvements.

 

1.17         “Planning Costs”
means all architectural, space planning, engineering and other costs related to
the design of the Tenant Improvements including, without limitation, the fees
of Tenant’s Architect, the Engineers and the professionals preparing and/or
reviewing Tenant’s Plans (or any of them).

 

1.18         “Plans and Specifications”
means all architectural plans, construction drawings and specifications necessary
and sufficient (i) for the construction of the Tenant Improvements in
accordance with the Final Space Plan and (ii) to enable the Contractor to
obtain all necessary Permits for the construction of the Tenant Improvements,
and which shall contain the information and otherwise comply with the
requirements set forth on Annex 3 attached hereto.

 

1.19         “Preliminary Plan”
means a preliminary space plan prepared by Tenant’s Architect showing the
general layout of the Premises upon completion of the Tenant Improvements,
which space plan shall contain the information and otherwise comply with the
requirements set forth on Annex 1 attached hereto.

 

1.20         “Punch List Work”
means minor details of construction, decoration and mechanical adjustment, if
any, the noncompletion of which do not materially interfere with the use of the
relevant portion of the Building.

 

1.21         “Requirements”
has the meaning given such term in the Lease.

 

1.22         “Substantial Completion”
has the meaning given such term in the Lease.

 

1.23         “Tenant’s
Architect” means the architect engaged by Tenant to design the
Tenant Improvements and prepare Tenant’s Plans.

 

C-2

 

1.24         “Tenant’s
Contractors” means Contractor and all subcontractors and
subsubcontractors (including the Essential Subs) who will work on the Tenant
Improvements.

 

1.25         “Tenant’s
Equipment” means any telephone, telephone switching, telephone and
data cabling, furniture, computers, servers, Tenant’s trade fixtures and other
personal property to be installed by or on
behalf of Tenant in the Premises.

 

1.26         “Tenant
Improvements” means the improvements set forth in Tenant’s Plans as
approved by Landlord in accordance with the terms of this Work Agreement.

 

1.27         “Tenant’s
Plans” means the Preliminary Plan, the Final Space Plan and the
Plans and Specifications.

 

1.28         “Tenant’s
Representative” means Melanie Fitzpatrick, whose address is 11501
Domain Drive, Suite 200, Austin, Texas 78758, whose telephone number is
(512) 845-8162, and whose telecopier number is (512) 652-2691.

 

1.29         “Unavoidable Delay”
has the meaning given such term in the Lease.

 

Capitalized terms used but not defined in this Work
Agreement shall have the meanings given such terms in the Lease.

 

Article 2
— Plans

 

2.1           Tenant’s Architect and Engineers. Tenant has or
will retain Tenant’s Architect to design the Tenant Improvements and prepare
Tenant’s Plans. Tenant’s Architect and the Engineers shall be subject to
Landlord’s reasonable approval, which approval shall not be unreasonably
withheld, conditioned or delayed.

 

2.2           Preliminary Plan. Within
twenty (20) Business Days after the Effective Date, Tenant shall deliver the
Preliminary Plan to Landlord for Landlord’s approval. Within seven (7) Business
Days after Tenant delivers the Preliminary Plan to Landlord, Landlord shall
advise Tenant of Landlord’s approval or disapproval of the Preliminary Plan
(which disapproval shall specify Landlord’s objections in sufficient detail so
that Tenant can make the necessary revisions to satisfy such objections).
Within three (3) Business Days after Landlord notifies Tenant of Landlord’s
objections, Tenant shall revise the proposed Preliminary Plan to address Landlord’s
objections and deliver the revised Preliminary Plan to Landlord for Landlord’s
approval. Within three (3) Business Days after Tenant delivers the revised
Preliminary Plan to Landlord, Landlord shall advise Tenant of Landlord’s
approval or disapproval of the revised Preliminary Plan (which disapproval
shall specify Landlord’s objections in sufficient detail so that Tenant can
make the necessary revisions to satisfy such objections). Tenant and Landlord
shall continue to follow the revision, delivery and notice of objections
procedure and schedule set forth above until Landlord approves the Preliminary
Plan. Landlord will not unreasonably withhold, condition or delay its approval
of the Preliminary Plan at any point during this approval process.

 

C-3

 

2.3                                 Final Space Plan. Within twenty (20) Business Days after
Landlord approves the Preliminary Plan, Tenant shall deliver the Final Space
Plan to Landlord for Landlord’s approval. 
Within seven (7) Business Days after Tenant delivers the Final
Space Plan to Landlord, Landlord shall advise Tenant of Landlord’s approval or
disapproval of the Final Space Plan (which disapproval shall specify Landlord’s
objections in sufficient detail so that Tenant can make the necessary revisions
to satisfy such objections). Within ten (10) Business Days after Landlord
notifies Tenant of Landlord’s objections, Tenant shall revise the proposed
Final Space Plan to meet Landlord’s objections and deliver the revised Final
Space Plan to Landlord for Landlord’s approval. Within seven (7) Business
Days after Tenant delivers the revised Final Space Plan to Landlord, Landlord
shall advise Tenant of Landlord’s approval or disapproval of the revised Final
Space Plan (which disapproval shall specify Landlord’s objections in sufficient
detail so that Tenant can make the necessary revisions to satisfy such
objections). Tenant and Landlord shall continue to follow the revision,
delivery and notice of objections procedure and schedule set forth above until
Landlord approves the Final Space Plan. Landlord will not unreasonably
withhold, condition or delay its approval of the Final Space Plan at any point
during this approval process.

 

2.4                                 Plans and Specifications. Within twenty (20) Business Days after
Landlord approves the Final Space Plan, Tenant shall deliver the Plans and
Specifications to Landlord for Landlord’s approval. Within twelve (12) Business
Days after Tenant delivers the Plans and Specifications to Landlord, Landlord
shall advise Tenant of Landlord’s approval or disapproval of the Plans and
Specifications (which disapproval shall specify Landlord’s objections in
sufficient detail so that Tenant can make the necessary revisions to satisfy
such objections). Within ten (10) Business Days after Landlord notifies
Tenant of Landlord’s objections, Tenant shall revise the proposed Plans and
Specifications to meet Landlord’s objections and deliver the revised Plans and
Specifications to Landlord for Landlord’s approval. Within twelve (12) Business
Days after Tenant delivers the revised Plans and Specifications to Landlord,
Landlord shall advise Tenant of Landlord’s approval or disapproval of the
revised Plans and Specifications (which disapproval shall specify Landlord’s
objections in sufficient detail so that Tenant can make the necessary revisions
to satisfy such objections). Tenant and Landlord shall continue to follow the
revision, delivery and notice of objections procedure and schedule set forth
above until Landlord approves the Plans and Specifications. Landlord will not
unreasonably withhold, condition or delay its approval of the Plans and
Specifications at any point during this approval process.

 

2.5                                 Changes to Plans.

 

(a)           In
the event of any Change Order or in the event that Landlord determines
(reasonably and in good faith) that any of Tenant’s Plans have not been
prepared in accordance with the requirements of this Work Agreement, Tenant
shall be solely responsible for all costs and expenses (over and above Landlord’s
Contribution) and for all delays in occupancy by Tenant (which shall not delay
the Commencement Date or the Rent Commencement Date) resulting therefrom
including, without limitation, costs or expenses relating to (i) any
additional architectural or engineering services and related design expenses; (ii) any
architectural or engineering costs incurred by Landlord in connection with its
review of such requested change; 

 

C-4

 

(iii) any changes to materials in process of fabrication; (iv) cancellation
or modification of supply or fabricating contracts; (v) removal or
alteration of work or plans completed or in process; or (vi) delay claims
made by Contractor.

 

(b)           No
changes shall be made to any of Tenant’s Plans and no Change Orders shall be
implemented without the prior written approval of Landlord, which approval
shall not be unreasonably withheld, conditioned or delayed. All Change Orders
shall be in writing and shall be on such AIA form as is required by Landlord
and/or Contractor. Tenant shall evidence in writing its approval of any Change
Order prior to requesting Landlord’s approval of same.

 

2.6                                 General Plan Provisions.

 

(a)           Tenant
shall cause (i) Tenant’s Plans to comply with all applicable Requirements;
(ii) Tenant’s Plans to be prepared by Tenant’s Architect and the Engineers
in accordance with the terms of this Work Agreement and in conformity with the
Base Building Plans and the base Building systems (including, without
limitation, the base Building HVAC, mechanical, electrical, plumbing and life
safety systems); (iii) the Plans and Specifications to be sufficient to
enable Contractor (with respect to the Plans and Specifications) to obtain all
necessary Permits; and (iv) the Plans and Specifications to be prepared
using the AutoCAD Computer Assisted Drafting and Design System, using naming
conventions issued by the American Institute of Architects in June, 1990
and magnetic computer media of such drawings and specifications translated in
convertible DFX format. Tenant shall cause Tenant’s Plans not to include any
Tenant Improvements that will or that reasonably might be anticipated to (1) interfere
with the normal operation of the Building, Building operations, or the Base
Building Systems; (2) materially increase maintenance or utility charges
for operating the Building in excess of the standard requirements for
Comparable Buildings, or (3) affect the exterior or structure of the
Building.

 

(b)           Any provision of this Work Agreement
or the Lease to the contrary notwithstanding, Landlord’s approval of the Plans
and Specifications shall not constitute an assurance by Landlord that the Plans
and Specifications satisfy any applicable Requirements or are sufficient to
enable the Contractor to obtain a building permit for the undertaking of the
Tenant Improvements. If Landlord notifies Tenant at any time that the Plans and
Specifications must be revised due to their failure to comply with the terms of
this Work Agreement, such revisions shall be made at Tenant’s expense and any
delay arising in connection therewith shall constitute a Tenant delay and shall
not postpone or delay the Rent Commencement Date or otherwise give rise to any
claim or cause of action against Landlord.

 

(c)           Prior to making or installing any of
the Tenant Improvements, Tenant shall perform a field verification to
independently determine the existing conditions, specifications and dimensions
of the Premises and any variances from the Base Building Plans.

 

C-5

 

(d)           Tenant
has appointed Tenant’s Representative for purposes of granting any consents or
approvals by Tenant under this Work Agreement and for authorizing and executing
any and all Change Orders or other documents in connection with this Work
Agreement and Landlord shall have the right to rely on Tenant’s Representative’s
consent, approval, authorization or execution as aforesaid.

 

(e)           Landlord
has appointed Landlord’s Representative for purposes of granting any consents
or approvals by Landlord under this Work Agreement and for authorizing and
executing any and all Change Orders or other documents in connection with this
Work Agreement and Tenant shall have the right to rely on Landlord’s
Representative’s consent, approval, authorization or execution as aforesaid.

 

(f)            Tenant
shall reimburse Landlord for all reasonable out-of-pocket costs incurred by
Landlord in reviewing any proposed Tenant Plans and Change Orders within thirty
(30) days after Tenant’s receipt of an invoice therefor.

 

Article 3
— Construction

 

3.1                                 Reserved.

 

3.2                                 Tenant Improvements. Tenant shall, at Tenant’s expense,
Substantially Complete the Tenant Improvements in a good and workmanlike manner
and in accordance with the terms of this Work Agreement not later than on August 1,
2009. Except to the extent that the Plans and Specifications provide otherwise,
Tenant will cause the Tenant Improvements to be constructed of new materials
commensurate with the level of improvements for a typical first-class tenant in
Comparable Buildings and to satisfy, at a minimum, the criteria set forth on
Annex 4-Minimum Build-Out Standards.

 

3.3                                 General Contractor. Within five (5) days after
Landlord’s approval of the Plans and Specifications, Tenant shall enter into a
contract for construction of the Tenant Improvements with a general
contractor.  The general contractor shall
be subject to Landlord’s approval, such approval not to be unreasonably
withheld, conditioned or delayed, and upon such selection and approval such
general contractor shall be the “Contractor” under this Work Agreement. Tenant’s
construction contract with the Contractor shall be subject to Landlord’s prior
approval, such approval not to be unreasonably withheld, conditioned or
delayed. The Contractor shall be responsible for all required construction,
management and supervision of the Tenant Improvement work.

 

3.4                                 Subcontractors. Landlord shall have the right to
approve Tenant’s subcontractors, such approval not to be unreasonably withheld,
conditioned or delayed.

 

3.5                                 Certain Essential Work. 
Subject to Tenant’s reimbursement of such expenses as provided in Article 4,
below, all Tenant Improvement connections or tie-ins to the base Building
energy management, sprinkler and fire and life safety systems shall be
performed at Tenant’s expense by the applicable Essential Sub. All Tenant
Improvement work relating to the Building 

 

C-6

 

exterior walls and
windows (including window removal and reinstallation for hoisting purposes),
and the roof (excluding HVAC), shall be performed at Tenant’s expense by the
applicable Essential Sub.

 

3.6                                 Permits. Subject to Tenant’s reimbursement of such expenses
as provided in Article 4, below, prior to commencement of the Tenant
Improvements, Tenant shall, at Tenant’s expense, obtain the Permits.

 

3.7                                 Pre-Construction Deliveries.  
Not fewer than ten (10) days prior to commencement of construction
of the Tenant Improvements, Tenant shall deliver the following information and
items to Landlord:

 

(a)           the names and
addresses of Tenant’s Contractors;

 

(b)           the schedule for
commencement of construction, the estimated date of Substantial Completion, the
fixturing work and the date on which Tenant will commence occupancy of the
Premises for the conduct of Tenant’s business;

 

(c)           Tenant’s itemized
statement of the estimated Improvement Costs;

 

(d)           certificates of
insurance evidencing all insurance coverage required under the Lease and this
Work Agreement; and

 

(e)           a copy of the
Permits.

 

3.8                                 Tenant’s Equipment. 
Tenant, at Tenant’s expense, shall be responsible for ordering and for
the delivery and installation of Tenant’s Equipment.

 

3.9                                 Post Construction Activities. 
Prior to Tenant’s use or occupancy of the Premises or any portion
thereof and Landlord’s disbursement of any portion of the Retainage, Tenant
shall, at Tenant’s expense, deliver to Landlord a copy of the certificate of
occupancy and all other certifications and approvals with respect to the Tenant
Improvements that may be required from any governmental authority and/or any board
or fire underwriters or similar body for the use and/or occupancy of the
Premises; and certificates of insurance evidencing all insurance coverage
required under the Lease and this Work Agreement.

 

3.10                           General Construction Provisions.

 

(a)           Any damage caused by
Tenant’s Contractors to any portion of the Building or to any property of
Landlord or other tenants shall be repaired forthwith after written notice from
Landlord to its condition prior to such damage by Tenant at Tenant’s expense.

 

(b)           While
carrying out construction activities, Tenant and Tenant’s Contractors shall
access the Premises via the Building freight elevator, work in harmony and not
interfere with the performance of other work in the Building.

 

C-7

 

(c)           If
at any time such entry shall cause, such disharmony or interference, Landlord
may terminate such permission upon 24 hours’ notice to Tenant, and thereupon,
Tenant or its employees, agents, contractors, and suppliers causing such
disharmony or interference shall immediately withdraw from the Premises and the
Building until Landlord reasonably determines such disturbance no longer
exists.

 

(d)           Tenant shall comply
with and cause Tenant’s Contractors to comply with the rules and
regulations attached hereto as Annex 5-Construction Rules and Regulations
and such other reasonable rules and regulations as Landlord from time to
time establishes concerning construction work in the Building.

 

Article 4
— Improvement Costs and Landlord’s Contribution

 

4.1           Improvement Costs.  Tenant shall be responsible for the full and
timely payment of all Improvement Costs, subject to Landlord’s disbursement of
Landlord’s Contribution as provided in this Work Agreement. Landlord shall make
disbursements from Landlord’s Contribution as invoices are rendered to
Landlord, provided that Landlord has received partial or final (as applicable)
lien waivers and such other documentation as Landlord may reasonably require
from the party requesting such payment. Landlord shall have the right to deduct
Landlord’s Fee from Landlord’s Contribution as and when Landlord makes
disbursements from Landlord’s Contribution. Tenant agrees that Landlord’s
Contribution must be applied relatively proportionately towards the payment of
Improvements Costs for the entire Premises.

 

4.2           Landlord’s
Contribution.  Landlord shall
disburse an amount not to exceed Landlord’s Contribution toward the Improvement
Costs.

 

4.3           Disbursement of
Landlord’s Contribution.

 

(a)           Landlord shall make
progress payments to Tenant from Landlord’s Contribution for the work performed
during the previous month, less a retainage of ten percent (10%) of each
progress payment (“Retainage”),
such that if all conditions set forth in this Exhibit to Landlord’s
obligation to make a progress payment have been satisfied and (i) the
invoice for which Tenant seeks a progress payment states that the Retainage has
been deducted from the total amount owed, the progress payment will be for
entire amount that is then payable under such invoice, and (ii) the
invoice for which Tenant seeks a progress payment does not state that the
Retainage has been deducted from the total amount owed, the progress payment
will be for ninety percent (90%) of the invoiced amount. Prior to disbursement
of the first progress payment, Landlord shall have received a copy of Tenant’s
construction contract with the Contractor and Tenant’s budget (showing all
Improvement Costs) for the Tenant Improvements. 
Each progress payment shall be limited to that fraction of the total
amount of such payment, the numerator of which is the amount of Landlord’s
Contribution and the denominator of which is the total contract price (or, if
there is no specified or fixed contract price for the Tenant Improvements, then
Landlord’s reasonable estimate thereof) for the performance of all of the
Tenant Improvements shown Tenant’s Plans as approved by Landlord.

 

C-8

 

(b)           Prior to
disbursement of the first progress payment, Landlord shall have approved Tenant’s
construction contract with the Contractor and Tenant’s budget (showing all
Improvement Costs) for the Tenant Improvements, such approvals not to be
unreasonably withheld, conditioned or delayed.

 

(c)           If Landlord receives Tenant’s request
(together with the supporting documentation required hereunder) for a
disbursement from Landlord’s Contribution on or before the twentieth (20th) day of a month, Landlord will make such disbursement
not later than on the last day of the first calendar month following the
calendar month during which Landlord received such request.  If Landlord receives Tenant’s request
(together with the supporting documentation required hereunder) for a
disbursement from Landlord’s Contribution after the twentieth (20th) day of a month, Landlord will make such disbursement
not later than on the last day of the second calendar month following the
calendar month during which Landlord received such request.   Each of Tenant’s requisitions for a
disbursement from Landlord’s Contribution shall be signed by Tenant’s
Representative, shall set forth the names of each contractor and subcontractor
to whom payment is due or for which Tenant seeks reimbursements for payments
made by Tenant and the amount thereof, and shall be accompanied by: with
respect to the first requisition, copies of conditional waivers and releases of
lien upon progress payment in such form as Landlord reasonably requires from
all of Tenant’s Contractors and material suppliers covering all work and
materials for which the progress payment is being made, and after the first
requisition, copies of conditional waivers and releases of lien upon progress
payment in such form as Landlord reasonably requires from all of Tenant’s
Contractors and material suppliers covering all work and materials for which
the progress payment is being made, together with:

 

(i)            copies of unconditional waivers and releases of lien upon
progress payment in such form as Landlord reasonably requires from all of
Tenant’s Contractors and material suppliers covering all work and materials
which were the subject of previous progress payments by Landlord and Tenant;

 

(ii)           Tenant’s Architect’s written certification that the work
for which the requisition is being made has been Substantially Completed in
accordance with the Plans and Specifications; and

 

(iii)          such other
documents and information as Landlord may reasonably request.

 

(d)           Landlord shall
disburse the Retainage upon submission by Tenant to Landlord of Tenant’s
requisition therefor accompanied by all documentation required above, together
with:

 

(i)            Tenant’s Architect’s
written certification of final completion of the Tenant Improvements in
accordance with the Plans and Specifications. In addition, Landlord shall be
provided with the opportunity to inspect the Premises so that Landlord can be
reasonably satisfied of the final completion of the Tenant Improvements in
accordance with the Plans and 

 

C-9

 

Specifications;

 

(ii)           a
copy of the certificate of occupancy and all other certifications and approvals
with respect to the Tenant Improvements that may be required from any
Governmental Authority and/or any board or fire underwriters or similar body
for the use and/or occupancy of the Premises;

 

(iii)          final
waivers and releases of lien in such form as Landlord reasonably requires from
all of Tenant’s Contractors and material suppliers;

 

(iv)          certificates
of insurance evidencing all insurance coverage required under the Lease and
this Work Agreement;

 

(v)           a
copy of each guaranty, warranty and O&M manual applicable to the Tenant
Improvements. At Landlord’s request, Tenant shall enforce, at Tenant’s expense,
all guarantees and warranties made with respect to the Tenant Improvements; and

 

(vi)          final
“as built” plans (five (5) sets) and certified air balance reports for the
Premises.  The “as-built” plans shall be
prepared on the AutoCAD Computer Assisted Drafting and Design System, using
naming conventions issued by the American Institute of Architects in June, 1990
and magnetic computer media of such drawings and specifications translated in
convertible DFX format.

 

4.4           Special Application of Landlord’s
Contribution. If any portion of Landlord’s Contribution remains after final
payment of all Improvement Costs, such remaining portion shall be retained by
and belong to Landlord; provided, however, to the extent that the remaining
portion does not exceed $6.50 per square foot of Area of the Premises, such
remaining portion shall first be applied towards usual and customary expenses
associated with Tenant’s relocation to the Premises as well as telecom and
cabling costs.  Notwithstanding anything
to the contrary set forth in this Work Agreement, Tenant shall have the right
to spend up to an additional $6.50 per square foot of Area of the Premises of
Landlord’s Contribution to pay for furniture for the Premises.

 

4.5           Additional
Rent.  All amounts payable by Tenant
pursuant to this Work Agreement shall be deemed to be Additional Rent for
purposes of the Lease.

 

4.6           Conditions
to Advance. Any provision of the Lease or this Work Agreement to the
contrary notwithstanding, Landlord shall have no obligation to make any payment
or disbursement from Landlord’s Contribution (i) if the Lease is not in
full force and effect or there exists any Event of Default for monetary or
material non-monetary obligations; (ii) for any deposit or off-site
prefabrication, whether for Work, Tenant’s Equipment or otherwise; (iii) for
any Work that is not in place (or, if permitted by the Mortgagee, is not
ultimately intended to be in place, such as deposits for materials) at the
Premises; or (iv) for any Tenant’s Equipment not located at the Premises.

 

C-10

 

4.7           Failure
to Pay Contractors. Any provision of the Lease or this Work Agreement to
the contrary notwithstanding, assuming Landlord funds disbursement requests in
accordance with the terms of this Work Agreement, if Tenant does not pay any of
Tenant’s Contractors or material suppliers, Landlord shall have the right, but
not the obligation, to promptly pay to such contractor or supplier all sums so
due from Tenant, and Tenant agrees the same shall be deemed Additional Rent and
shall be paid by Tenant within ten (10) days after Landlord delivers to
Tenant an invoice therefor.

 

4.8           Excess
Costs.  If Landlord reasonably
determines at any time that the Improvement Costs exceed or will likely exceed
the remaining Landlord’s Contribution (the “Excess
Cost”), Landlord shall deliver written notice of that determination
to Tenant (which notice shall include reasonable supporting documentation of
that determination) and Tenant shall pay such Excess Cost to Landlord within
thirty (30) days after Tenant’s receipt of a written request therefor.  Once Landlord has received the Excess Cost
payment and the full amount of the Excess Cost held by Landlord has been used
to pay Improvement Costs, Landlord shall apply the remaining Landlord’s
Contribution towards payment of the Improvement Costs.

 

C-11

 

Annex 1

 

Requirements for Preliminary Space
Plan

 

Floor plans
showing partition arrangement including the following information:

 

a.                                       space plan showing the general layout of
offices, open plan areas and special tenant areas;

 

b.                                      typical individual work station layouts;

 

c.                                       identify the extent of each department on
each floor;

 

d.                                      show door locations and door swings in
partitions;

 

e.                                       identify general location and size of
interconnecting stairs;

 

f.                                         indicate preliminary furniture layout for
typical offices and work stations, conference rooms, employee lounge, reception
area, training room and print room;

 

g.                                      indicate locations for coffee rooms and
shower rooms; and

 

h.                                      preliminary locations for built-in
millwork.

 

 

Annex 2

 

Requirements for Final Space Plan

 

Floor plans, together with related
information for mechanical, electrical and plumbing design work, showing
partition arrangement (3 sets), including without limitation the following
information:

 

a.                                       identify the
location of conference rooms and density of occupancy;

 

b.                                      indicate the
density of occupancy for all rooms, except individual use rooms such as
offices;

 

c.                                       identify the
location of any food service areas or vending equipment rooms;

 

d.                                      identify areas,
if any, requiring 24 hour air conditioning;

 

e.                                       indicate those
partitions that are to extend from floor to underside of structural slab above
or require special acoustical treatment;

 

f.                                         identify the
location of rooms for telephone equipment other than Building core telephone
closet, identify type of equipment for these rooms;

 

g.                                      identify the
locations and types of plumbing required for toilets (other than core
facilities), sinks, drinking fountains, etc.;

 

h.                                      indicate light
switches in offices, conference rooms and all other rooms in the Premises;

 

i.                                          indicate the
layouts for specially installed equipment, including computer and duplicating
equipment, the size and capacity of mechanical and electrical services required
and heat rejection of the equipment;

 

j.                                          indicate the
location of: (A) electrical receptacles one hundred twenty (120) volts,
including receptacles for wall clocks, and telephone outlets and their
respective locations (wall or floor), (B) electrical receptacles for use
in the operation of Tenant’s business equipment which requires 208 volts or
separate electrical circuits, (C) electronic calculating and CRT systems,
etc., and (D) special audio-visual requirements;

 

k.                                       indicate
proposed layout and location of any of special equipment (e.g., fire
suppression equipment for computer room);

 

l.                                          indicate the
swing of each door;

 

m.                                    indicate any
special file systems to be installed which would require special construction;
and

 

n.                                      lighting
layouts for each floor.

 

 

Annex 3

 

Requirements for Plans and
Specifications

 

Final architectural detail and working drawings, finish schedules and
related plans (3 reproducible sets) including without limitation the following
information and/or meeting the following conditions:

 

a.                                       specifications of all materials, colors
and suppliers/manufacturers of wallcoverings, floor coverings, ceiling systems,
window coverings and other finishes; all millwork shall be fully detailed to
the appropriate level for pricing and construction; all specialty items shall
be identified as particular products; and paintings and decorative treatment
required to complete all construction;

 

b.                                      complete, finished, detailed mechanical,
electrical, plumbing and structural plans and specifications for the Tenant
Improvements, including but not limited to the fire and life safety systems and
all work necessary to connect any special or non-standard facilities to the
Building’s base mechanical systems; and

 

c.                                       all final floor plans must be drawn to a
scale of one-eighth (l/8) inch to one (l) foot except for larger scaled
detailed drawings.  Any architect or
designer acting for or on behalf of Tenant shall be deemed to be Tenant’s agent
in all respects with respect to the design and construction of the Premises.

 

 

Annex
4

 

Reserved

 

 

Annex
5

 

Construction Rules and
Regulations

 

1.                                       Tenant and/or
the general contractor will supply Landlord with a copy of all permits prior to
the start of any work.

 

2.                                       Tenant and/or
the general contractor will post the building permit on a wall of the
construction site while work is being performed.

 

3.                                       The Tenant
shall provide, in writing, prior to commencement of the work, the names and
emergency numbers of all subcontractors, the general contractor superintendent,
general contractor’s project manager and the Project Manager.

 

4.                                       No construction
is to be started until the drawings required under the Work Letter have been
submitted and approved in writing by Landlord.

 

5.                                       Landlord is to
be contacted by Tenant when work is completed for inspection.  All damage to building will be determined at
that time unless determined earlier.

 

6.                                       Any work that
is to be performed in other than Tenant’s Premises must be reviewed and
scheduled in advance with the Landlord.

 

7.                                       Landlord will
be notified of all work schedules of all workmen on the job and will be
notified, in writing, in advance, of names of those who may be working in the
building after “normal” business hours.

 

8.                                       Construction
personnel must carry proper identification at all times.

 

9.                                       All workers are
required to wear a shirt, shoes, and full length trousers.

 

10.                                 Landlord must
approve all roof top equipment and placement. 
All penetrations must be cut and flashed by the roof warranty holder of
the existing roof system.

 

11.                                 Landlord shall
designate contractor-parking areas (if any).

 

12.                                 Contractor must
notify Landlord two days prior to an independent air balancing service by a
certified air balance company.  Landlord’s
building engineer will accompany the contractor during their work. Landlord
must receive a copy of the final approved balance report.

 

13.                                 Before Landlord
makes final payment, five sets of as-built and all O&M manuals as well as a
CADD disc must be submitted to Landlord.

 

14.                                 The general contractor and Tenant shall
be responsible for all loss of their materials and tools and shall hold
Landlord harmless for such loss and from any damages or claims 

 

1

 

resulting from the work.

 

15.                                 The general
contractor shall maintain insurance coverage throughout the job of a type(s),
in amounts and issued by an insurance company, reasonably satisfactory to
Landlord. Prior to the commencement of work, a Certificate of Insurance must be
submitted with the limits of coverage per the limits noted in the Lease with
such parties being named as additional insureds as Landlord requires from time
to time.

 

16.                                 All key access,
fire alarm work, or interruption of security hours must be arranged with the
Landlord.

 

17.                                 Proper
supervision shall be maintained at the job site at all times and Tenant’s
workmen, mechanics and contractors must not unreasonably interfere with the
Building’s operations or Landlord. 
Tenant’s workmen, mechanics and contractors shall use good faith efforts
to work in harmony with and shall not unreasonably interfere with any labor
employed by the property manager or any other Tenant, or their workmen,
mechanics and contractors.

 

18.                                 Landlord is to
be notified in advance of all ties into Base Building Systems, welding, or any
work affecting the base building or other tenant spaces, and, unless agreed to
otherwise, all tie-ins to base building fire alarm systems will be performed by
Landlord, (or its designated contractor) and cost borne by Tenant, subject to
reimbursement pursuant to Article 4 of the Work Agreement.

 

19.                                 The following
work, of which Landlord is to be notified in advance, must be done on overtime
and not during normal business hours once any portion of the building is
occupied (by tenants other than the property management office):

 

·                                          Demolition
which per building manager’s reasonable judgment may cause disruption to other
tenants.

 

·                                          Oil base
painting (on multi-tenant floors)

 

·                                          Gluing of
carpeting (on multi-tenant floors)

 

·                                          Shooting of
studs for mechanical fastenings

 

·                                          Testing of life
safety system, sprinkler tie-ins.

 

·                                          Work performed
in occupied spaces.

 

·                                          Welding,
brazing, soldering and burning with proper fire protection and ventilation.

 

·                                          Other
activities that, in building manager’s reasonable judgment, will disturb other
tenants.

 

2

 

20.                                 All building
shutdowns — for testing electrical, plumbing, HVAC equipment, fire and
life-safety must be coordinated with Landlord in advance. Landlord’s and
Factory Mutual procedures for hot work, fire alarm and sprinkler shutdowns must
be followed.  Landlord’s on-site engineer
will detail the requirements summarized below:

 

·                                          Smoke detectors
must be bagged or cleaned daily and placed back in service at the end of each
day.

 

·                                          Call outs for
fire alarm and sprinkler systems must be made with and only with Landlord’s
personnel and with the attached forms. 
All systems must be put back into service at the end of each work day
and working correctly.

 

·                                          Hot work, i.e.,
torch burning/cutting and welding must be permitted through Landlord’s
personnel and contractor must use Landlord’s form.

 

·                                          When welding,
contractor shall provide a fused disconnect switch for connection to building
power supply and a Fire Watch.

 

·                                          Forms are to be
provided at kickoff meeting.

 

21.                                 Fire
extinguishers supplied by the general contractor must be on the job-site at all
times during demolition and construction

 

22.                                 No building
materials are to enter the building by way of main lobby, and no materials are
to be stored in any lobbies or fire stairs at any time.

 

23.                                 Contractors or
personnel will use loading dock area for all deliveries and will not use loading
dock for vehicle parking.

 

24.                                 Passenger
elevators shall not be used for moving building materials and shall not be used
for construction personnel except in the event of an emergency.  The designated freight elevator and one or
more protected passenger elevators are the only elevators to be used for moving
materials and construction personnel. 
These elevators may be used only when they are completely protected as
reasonably determined by Landlord’s building engineer.

 

25.                                 Protection of
hallway carpets, wall coverings, and elevators from damage with masonite board,
carpet, cardboard, or pads is required. They may be removed from time to time
as reasonably requested by the Landlord.

 

26.                                 Public spaces,
corridors, elevators, bathrooms, lobby, etc. must be cleaned after use.  Construction debris or materials found in
public areas will be removed at Tenant’s cost.

 

27.                                 Contractors
will remove their trash and debris daily or as often as necessary to maintain
cleanliness in the building.  Building
trash containers are not to be used for construction debris.  Landlord reserves the right to bill Tenant
for any cost incurred to clean up debris left by the general contractor or any
subcontractor (other than Contractor). 
Further, the 

 

3

 

building staff is instructed
to hold the driver’s license of any employee of the contractor while using the
freight elevator to ensure that all debris is removed from the elevator.

 

28.                                 All
construction materials or debris must be stored within the project confines or
in an approved lock-up.

 

29.                                 Contractors
will be responsible for daily removal of waste foods, milk and soft drink
containers, etc. to trash room and will not use any building trash receptacles
but trash receptacles supplied by them.

 

30.                                 Construction
personnel are not to eat in the lobby or in front of building nor are they to
congregate in the lobby or in front of building.

 

31.                                 There will be
no smoking, eating, or open food containers in the elevators, carpeted areas or
public lobbies.

 

32.                                 There will be
no alcohol or controlled substances allowed or tolerated.

 

33.                                 There will be
no yelling or boisterous activities.

 

34.                                 Radios shall
not be played on job site, except that radios shall be permitted until the
first tenant occupies any portion of the Building. In any event, radio volume
shall be kept to a reasonable level as reasonably determined by Landlord.

 

35.                                 Landlord shall
grant access to the base building electrical, telephone and mechanical rooms.

 

36.                                 No utilities
(electricity, water, gas, plumbing) or services to the tenants are to be cut
off or interrupted without first having requested, in writing, and secured, in
writing, the permission of Landlord (which shall not be unreasonably withheld,
conditioned or delayed).

 

37.                                 No electrical
services are to be put on the emergency circuit, without specific written
approval from Landlord (which shall not be unreasonably withheld, conditioned
or delayed).

 

38.                                 When utility
meters are installed, the general contractor must provide the property manager
with a copy of the operating instructions for that particular meter.

 

39.                                 All public
areas such as elevator lobbies, corridors, toilets and service halls shall be
protected with masonite and other such materials to the satisfaction of the
building manager/representative or representative.

 

40.                                 Trash and
debris resulting from the work shall be confined to either the interior of the
space under construction or an on-site dumpster.  If it is a dumpster, then such debris shall
be kept within the confines of the dumpster. 
The general contractor shall coordinate 

 

4

 

the location of the dumpster
with the landlord and plywood shall be used to protect the surface from damage.

 

41.                                 Contractor is
responsible to keep the construction area safe and in a workmanlike manner.
Machinery noise shall not interfere with the peaceful enjoyment of any tenant
or their invitees to the building.  No
smoking in the building will be allowed at any time.

 

42.                                 Clear access is
to be provided at all times to stairwells, mechanical/electrical equipment and
rooms, elevators, fire hoses, valves, fire dampers and maintenance sensitive
equipment.

 

43.                                 Adequate
lighting is to be provided in construction areas to achieve a safe working
environment.

 

44.                                 A Tenant valve
tag chart shall be submitted to the Landlord.

 

45.                                 All piping and
wiring systems shall be adequately supported from building structure.

 

46.                                 The cleaning of
condenser water pipes shall be done in the presence of the Landlord’s
representative with the chemical used per the building’s chemical treatment
company’s recommendation.

 

47.                                 All mechanical
and electrical equipment shall have permanent identification labels affixed.

 

48.                                 Kitchen exhaust
access doors must be clearly identified and accessible for periodic inspection
as required by law.

 

49.                                 All
telecommunication cabling in common areas, mechanical equipment rooms, etc.
shall be installed in an enclosed raceway and shall be identified.

 

50.                                 All air
handlers, CAV boxes and VAV boxes need pre-filters (construction filters)
installed over filter bank and may require periodic changes during the
construction period until each floor is complete at which time a change out of
filters is required.  All units will be
required to be cleaned thoroughly if the system is contaminated and this
procedure is not maintained.

 

51.                                 All mechanical,
telephone, electrical and pump room floors must be painted at the end of the
job. Damaged, stained or new walls and pipe, etc. must be painted to match
existing pipes and new pipes must match Landlord’s standard colors.

 

52.                                 After all
tenant construction is complete, the elevator systems need to be cleaned by the
elevator service provider at tenant contractor’s expense.  This includes rails, pits, tops of cabs,
machine rooms.

 

5

 

Exhibit D

 

Cleaning Specifications

 

GENERAL CLEANING

 

NIGHTLY

 

General Offices:

 

1.                                       All hard surfaced flooring to be swept
using approved dustdown preparation.

 

2.                                       Carpet sweep all carpets, moving only
light furniture (desks, file cabinets, etc. not to be moved).

 

3.                                       Hand dust and wipe clean all furniture,
fixtures and window sills.

 

4.                                       Empty all waste receptacles and remove
wastepaper.

 

5.                                       Wash clean all Building water fountains
and coolers.

 

6.                                       Sweep all private stairways.

 

Lavatories:

 

1.                                       Sweep and wash all floors, using proper
disinfectants.

 

2.                                       Wash and polish all mirrors, shelves,
bright work and enameled surfaces.

 

3.                                       Wash and disinfect all basins, bowls and
urinals.

 

4.                                       Wash and disinfect all toilet seats.

 

5.                                       Hand dust and clean all partitions, tile
walls, dispensers and receptacles in lavatories and restrooms.

 

6.                                       Empty paper receptacles, fill receptacles
and remove wastepaper.

 

7.                                       Fill toilet tissue holders.

 

8.                                       Empty and clean sanitary disposal
receptacles.

 

D-1

 

WEEKLY

 

1.                                       Vacuum all carpeting and rugs.

 

2.                                       Dust all door louvers and other
ventilating louvers within a person’s normal reach.

 

3.                                       Wipe clean all brass and other bright
work.

 

QUARTERLY

 

High dust premises complete including the following:

 

1.                                       Dust all pictures, frames, charts, graphs
and similar wall hangings not reached in nightly cleaning.

 

2.                                       Dust all vertical surfaces, such as
walls, partitions, doors, door frames and other surfaces not reached in nightly
cleaning.

 

3.                                       Dust all venetian blinds.

 

4.                                       Wash all windows.

 

D-2

 

Exhibit E

 

Rules and Regulations

 

1.        Nothing shall be attached to the outside
walls of the Building.  Other than
Building standard blinds, no curtains, blinds, shades, screens or other
obstructions shall be attached to or hung in or used in connection with any
exterior window or entry door of the Premises, without the prior reasonable
consent of Landlord (which shall not be unreasonably withheld, conditioned or
delayed).

 

2.             No sign,
advertisement, notice or other lettering visible from the exterior of the
Premises shall be exhibited, inscribed, painted or affixed to any part of the
Premises without the prior written consent of Landlord (which shall not be
unreasonably withheld, conditioned or delayed). 
All lettering on suite entry doors shall be inscribed, painted or
affixed in a size, color and style reasonably acceptable to Landlord.

 

3.             The grills,
louvers, skylights, windows and doors that reflect or admit light and/or air
into the Premises or Common Areas shall not be covered or obstructed by Tenant
except as set forth in item 1 above, nor shall any articles be placed on the
window sills, radiators or convectors.

 

4.             Landlord shall have
the right to prohibit any advertising by any Tenant which, in Landlord’s
reasonable opinion, tends to impair the reputation
of the Building, and upon written notice from Landlord, Tenant shall refrain
from or discontinue such advertising.

 

5.             The
Common Areas shall not be obstructed or encumbered by any Tenant or used for
any purposes other than ingress of egress to and from the Premises and for
delivery of merchandise and equipment in a prompt and efficient manner, using
elevators and passageways designated for such delivery by Landlord.

 

6.             All
locks and deadbolts of any kind shall be operable by the Building’s Master Key.  No locks shall be placed upon any of the
doors or windows by Tenant, nor shall any changes be made in locks or the
mechanism thereof which shall make such locks inoperable by the Building’s
Master Key.  Tenant shall, upon the
termination of its Lease, deliver to Landlord all keys of stores, offices and
lavatories, either furnished to or otherwise procured by Tenant and in the
event of the loss of any keys furnished by Landlord, Tenant shall pay to
Landlord the cost thereof.

 

7.             Tenant shall keep
the entrance door to the Premises closed at all times.

 

8.             All movement in or
out of any freight, furniture, boxes, crates or any other large object or
matter of any description must take place during such times and in such
elevators as Landlord may reasonably prescribe. 
Landlord reserves the right to inspect all articles to be brought into
the Building and to exclude from the Building all articles which violate any of
these Rules and Regulations or the Lease. 
Landlord may require that any person leaving the public areas of the
Building with any article to submit a pass, signed by an authorized person,
listing each article being removed, but the establishment and enforcement of
such requirement shall not impose any responsibility on Landlord for the
protection of any Tenant against the removal of property from the Premises.

 

E-1

 

9.             All hand trucks
shall be equipped with rubber tires, side guards and such other safeguards as
Landlord may reasonably require.

 

10.           Except as might be
expressly permitted under the Lease, no Tenant Party shall be permitted to have access to the Building’s roof, mechanical,
electrical or telephone rooms without permission from Landlord, which
permission will not be unreasonably withheld, conditioned or delayed.  The foregoing notwithstanding, Tenant Parties
will be given access to and a non-exclusive right to use the Building’s roof
deck, which access and use shall be subject to such rules and regulations
as Landlord shall from time to time reasonably promulgate with respect thereto
(including, without limitation, rules and regulations pertaining to roof
deck safety, reservations and post-use clean-up).

 

11.           Tenant shall not
permit or suffer the Premises to be occupied or used in a manner offensive or
objectionable to Landlord or other occupants of the Building by reason of
unreasonable noise, odors, vibrations or unreasonable interference in any way
with other tenants or those having business therein.

 

12.           Except as set forth
in the Lease, Tenant shall not employ any person or persons other than the
janitor of Landlord for the purpose of cleaning the Premises, unless otherwise
agreed to by Landlord, which agreement shall not be unreasonably withheld,
conditioned or delayed.  Tenant shall not
cause any unnecessary labor by reason of such Tenant’s carelessness or
indifference in the preservation of good order and cleanliness.

 

13.           Tenant shall store
all its trash and recyclables within its Premises.  No material shall be disposed of which may
result in a violation of any Requirement. 
All refuse disposal shall be made only though entry ways and elevators
provided for such purposes and at such times as Landlord shall designate.  Tenant shall use the Building’s refuse and
recycling contractor(s).

 

14.           Tenant shall not
deface any part of the Building.  No
boring, cutting or stringing of wires shall be permitted, except with prior
consent of Landlord (which shall not be unreasonably withheld, conditioned or
delayed), and as Landlord may direct and except for typical office building purposes (e.g., picture hanging).

 

15.           The
water and wash closets, electrical closets, mechanical rooms, fire stairs and
other plumbing fixtures shall not be used for any purposes other than those for
which they were constructed and no sweepings, rubbish, rags, acids or other
substances shall be deposited therein. 
All damages resulting from any misuse of the fixtures shall be borne by
Tenant where a Tenant Party caused the same.

 

16.           Tenant,
before closing and leaving the Premises at any time, shall see that all lights,
water faucets, etc. are turned off.  All
entrance doors in the Premises shall be kept locked by Tenant when the Premises
are not in use.

 

17.           No
animals of any kind (except for seeing eye dogs) shall be brought into or kept
by any Tenant in or about the Premises or the Building.  No in-line roller skates, bicycles or
vehicles shall be brought into or kept by any Tenant in or about the Premises
or the Building, except that bicycles can be kept at the bicycle rack (if any)
provided by Landlord at the Building and automobiles may be kept in the parking
garage.

 

18.           Canvassing
or soliciting in the Building is prohibited.

 

E-2

 

19.           Employees
of Landlord or Landlord’s Agent shall not perform any work or do anything
outside of their regular duties, unless under special instructions from the
office of Landlord or in response to any emergency condition.

 

20.           Tenant
is responsible for the delivery and pick up of all mail from the United States
Post Office.  Landlord reserves the right
to prohibit overnight courier, commercial and other package delivery services
from entering the Building, other than to pick-up packages from or to deliver
packages to such central messenger facility designated by Landlord for the
Building.

 

21.           Landlord
reserves the right to exclude from the Building all persons who do not present
a valid Building pass.  Tenant shall be
responsible for all persons for whom a pass shall be issued at the request of
Tenant and shall be liable to Landlord for all acts of such persons.

 

22.           Except as
set forth in the Lease, Landlord shall not be
responsible to Tenant or to any other person for the non-observance or
violation of these Rules and Regulations by any other tenant or other
person; provided, however, Landlord shall reasonably endeavor to apply these Rules and
Regulations in an even, non-discriminatory manner to all tenants and other
users of the Building.  Tenant shall be
deemed to have read these Rules and Regulations and to have agreed to
abide by them as a condition to its occupancy of the Premises.

 

23.           No person shall smoke, chew or
otherwise ingest, or use tobacco products at the Building, the Common Areas
(including any sidewalks adjacent to the Building) or the Premises, except in
an area (if any) designated by Landlord.

 

E-3

 

Exhibit F

 

Form of Letter of Credit

 

COMERICA BANK HAS
PREPARED THIS SPECIMEN UPON THE REQUEST AND BASED ON THE INFORMATION PROVIDED.  NO REPRESENTATION AS TO THE ACCURACY OR
WILLINGNESS FOR COMMITMENT IS MADE BY COMERICA BANK TO ISSUE THIS LETTER OF
CREDIT IN THIS OR ANY OTHER FORM.

 

	
  APPROVED BY

  	
   

  	
  DATE

  	
   

  	
   

  
	
   

  	
  CONVIO, INC.

  	
   

  

 

WHEN SIGNED, THIS
EXHIBIT A WILL BECOME AN INTEGRAL PART OF THE CORRESPONDING STANDBY LETTER
OF CREDIT APPLICATION AND AGREEMENT.

 

	
  RE:

  	
  IRREVOCABLE
  LETTER OF CREDIT NO.

  	
   

  	
   

  

 

	
  BENEFICIARY

  	
  APPLICANT

  
	
  1255 23RD STREET, L.P.

  	
  CONVIO, INC.

  
	
  C/O TISHMAN
  SPEYER PROPERTIES, L.P.

  	
  11501 DOMAIN
  DRIVE

  
	
  45 ROCKEFELLER
  PLAZA, 7TH FLOOR

  	
  SUITE 200

  
	
  NEW YORK, NEW
  YORK 10111

  	
  AUSTIN, TX 78758

  
	
  ATTN:  GENERAL
  COUNSEL

  	
   

  

 

GENTLEMEN:

 

WE HEREBY OPEN OUR
UNCONDITIONAL IRREVOCABLE LETTER OF CREDIT NO.
                            
IN YOUR FAVOR AVAILABLE BY YOUR DRAFT(S) AT SIGHT FOR AN AMOUNT NOT TO
EXCEED IN THE AGGREGATE
$                                        
EFFECTIVE IMMEDIATELY.

 

THIS LETTER OF
CREDIT IS ISSUED, PRESENTABLE AND PAYABLE AT OUR OFFICE OF COMERICA BANK,
INTERNATIONAL TRADE SERVICES, 6260 E. MOCKINGBIRD LANE, 2ND FLOOR, MC-6588,
DALLAS, TX 75214, AND EXPIRES WITH OUR CLOSE OF BUSINESS ON
                                            .

 

IT IS A CONDITION
OF THIS LETTER OF CREDIT THAT IT SHALL BE DEEMED AUTOMATICALLY EXTENDED WITHOUT
AMENDMENT FOR A PERIOD OF ONE YEAR FROM THE PRESENT OR ANY FUTURE EXPIRATION
DATE, UNLESS AT LEAST “THIRTY” (“030”) DAYS PRIOR TO THE EXPIRATION DATE WE
SEND YOU NOTICE BY A NATIONALLY RECOGNIZED COURIER THAT WE ELECT NOT TO EXTEND
THIS CREDIT FOR ANY SUCH ADDITIONAL PERIOD.  
SAID NOTICE WILL BE SENT TO THE ADDRESS INDICATED ABOVE, UNLESS A CHANGE
OF ADDRESS IS OTHERWISE NOTIFIED BY YOU TO US IN WRITING BY RECEIPTED MAIL OR
NATIONALLY RECOGNIZED COURIER.  ANY
NOTICE TO US WILL BE DEEMED EFFECTIVE ONLY UPON ACTUAL RECEIPT BY US AT OUR
DESIGNATED OFFICE

 

IF THIS LETTER OF
CREDIT IS NOT EXTENDED FOR AN ADDITIONAL PERIOD AS PROVIDED ABOVE, YOU MAY DRAW
HEREUNDER.  SUCH DRAWING IS TO BE MADE BY
MEANS OF A DRAFT ON US AT SIGHT WHICH MUST BE PRESENTED TO US BEFORE THE THEN
EXPIRATION DATE OF THIS LETTER OF CREDIT.

 

THIS LETTER OF
CREDIT CANNOT BE MODIFIED OR REVOKED WITHOUT YOUR CONSENT. THIS 

 

F-1

 

LETTER OF CREDIT
IS PAYABLE IN MULTIPLE DRAFTS.

 

THIS LETTER OF
CREDIT MAY BE TRANSFERRED SUCCESSIVELY IN ITS ENTIRETY ONLY UP TO THE THEN
AVAILABLE AMOUNT IN FAVOR OF A NOMINATED TRANSFEREE (“TRANSFEREE”), ASSUMING
SUCH TRANSFER TO SUCH TRANSFEREE IS IN COMPLIANCE WITH ALL APPLICABLE U.S. LAWS
AND REGULATIONS.  AT THE TIME OF
TRANSFER, THE ORIGINAL LETTER OF CREDIT AND ORIGINAL AMENDMENT(S) IF ANY,
MUST BE SURRENDERED TO US TOGETHER WITH OUR TRANSFER FORM (AVAILABLE UPON
REQUEST) AND PAYMENT OF OUR CUSTOMARY TRANSFER FEES BY APPLICANT.

 

WE ENGAGE WITH YOU
THAT ANY PRESENTATION DRAWN IN COMPLIANCE WITH THE TERMS OF THIS CREDIT WILL BE
DULY HONORED WHEN PRESENTED AT THIS OFFICE ON OR BEFORE THE CLOSE OF BUSINESS
ON THE EXPIRY DATE, AS SET FORTH ABOVE FOR THE AMOUNT AVAILABLE TO BE DRAWN ON
THIS LETTER OF CREDIT UPON PRESENTATION OF YOUR SIGHT DRAFT IN THE FORM OF
“SCHEDULE A” ATTACHED HERETO DRAWN ON US.

 

EXCEPT AS
EXPRESSLY STATED HEREIN, THIS UNDERTAKING IS NOT SUBJECT TO ANY AGREEMENTS,
REQUIREMENTS OR QUALIFICATION.  OUR
OBLIGATION UNDER THIS LETTER OF CREDIT IS OUR INDIVIDUAL OBLIGATION AND IS IN
NO WAY CONTINGENT UPON REIMBURSEMENT WITH RESPECT THERETO OR UPON OUR ABILITY
TO PERFECT ANY LIEN, SECURITY INTEREST OR ANY OTHER REIMBURSEMENT.

 

EXCEPT SO FAR AS
OTHERWISE EXPRESSLY STATED, THIS LETTER OF CREDIT IS SUBJECT TO THE ‘‘INTERNATIONAL
STANDBY PRACTICES - ISP98’’, ICC PUBLICATION NO. 590.

 

COMERICA BANK

 

 

END OF SPECIMEN

 

F-2

 

SCHEDULE “A”  TO LETTER OF CREDIT

 

SIGHT DRAFT

 

	
  DATE:

  	
   

  	
   

  

 

FOR VALUE RECEIVED

 

PAY AT SIGHT BY WIRE TRANSFER IN IMMEDIATELY
AVAILABLE FUNDS TO                                           
THE SUM OF U.S.
$                            
DRAWN UNDER IRREVOCABLE LETTER OF CREDIT NO.                               ,
DATED
                      ,  200   ,
ISSUED BY
                                                              .

 

TO:         [ISSUER
OF LETTER OF CREDIT]

 

 

	
  (BENEFICIARY’S NAME)

  	
   

  
	
   

  	
   

  
	
  SIGNED BY:

  	
   

  	
   

  
	
   

  	
   

  
	
  NAME & TITLE:

  	
   

  	
   

  
				

 

F-3Exhibit 10.10

 

INDEMNITY AGREEMENT

 

This Indemnity Agreement, dated as of                                ,
2010, is made by and between Convio, Inc., a Delaware corporation (the “Company”), and the
undersigned (the “Indemnitee”).

 

RECITALS

 

A.             The Company and
Indemnitee recognize the continued difficulty in obtaining liability insurance
for the Company’s directors, officers, employees and other agents, the cost of
such insurance and the general reductions in the coverage of such insurance;

 

B.              The Company and
Indemnitee recognize the substantial increase in corporate litigation in
general, and against publicly-held companies in particular, subjecting
directors, officers, employees and other agents to expensive litigation risks
at the same time as the availability and coverage of liability insurance has
been severely limited;

 

C.              The Company desires to
attract and retain the services of talented and experienced individuals, such
as Indemnitee, to serve as directors, officers, employees and agents of the
Company and its subsidiaries and wishes to indemnify its directors, officers,
employees and other agents to the maximum extent permitted by law;

 

D.              Section 145 of the
General Corporation Law of Delaware, under which the Company is organized (“Section 145”), empowers
the Company to indemnify its directors, officers, employees and agents by
agreement and to indemnify persons who serve, at the request of the Company, as
the directors, officers, employees or agents of other corporations or
enterprises, and expressly provides that the indemnification provided by Section 145
is not exclusive; and

 

E.              In order to induce
Indemnitee to serve or continue to serve as a director, officer, employee or
agent of the Company and/or one or more subsidiaries of the Company free from
undue concern for claims for damages arising out of or related to such services
to the Company and/or one or more subsidiaries of the Company, the Company has
determined and agreed to enter into this Agreement with Indemnitee.

 

AGREEMENT

 

NOW, THEREFORE, the Indemnitee and the Company
hereby agree as follows:

 

1.                Definitions. As used in this
Agreement:

 

(a)           “Agent” means any
person who is or was a director, officer, employee or other agent of the
Company or a subsidiary of the Company; or is or was serving at the request of,
for the convenience of, or to represent the interests of the Company or a
subsidiary of the Company as a director, officer, employee or agent of another
foreign or domestic corporation, partnership, joint venture, trust or other enterprise;
or was a director, officer, employee or agent of a foreign or domestic
corporation which was a predecessor corporation of the Company or a subsidiary
of the Company, or was a director, officer, employee or agent of another
enterprise at the request of, for the convenience of, or to represent the
interests of such predecessor corporation.

 

(b)           “Board” means the
Board of Directors of the Company.

 

1

 

(c)           A
“Change in Control”
shall be deemed to have occurred if (i) any “person,” as such term is used
in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), other than a trustee or other fiduciary holding
securities under an employee benefit plan of the Company or a corporation owned
directly or indirectly by the stockholders of the Company in substantially the
same proportions as their ownership of stock of the Company, is or becomes the “beneficial
owner” (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of the Company representing 20% or more of the total
voting power represented by the Company’s then outstanding voting securities, (ii)
during any period of two consecutive years, individuals who at the beginning of
such period constituted the Board, together with any new directors whose
election by the Board or nomination for election by the Company’s stockholders
was approved by a vote of at least two-thirds of the directors then still in
office who either were directors at the beginning of the period or whose
election or nomination was previously so approved, cease for any reason to
constitute a majority of the Board, (iii) the stockholders of the Company
approve a merger or consolidation or a sale of all or substantially all of the
Company’s assets with or to another entity, other than a merger, consolidation
or asset sale that would result in the holders of the Company’s outstanding
voting securities immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the
surviving entity) at least a majority of the total voting power represented by
the voting securities of the Company or such surviving or successor entity
outstanding immediately thereafter, (iv) the stockholders of the Company
approve a plan of complete liquidation of the Company, or (v) the Company
files a report or proxy statement with the Securities and Exchange Commission
pursuant to the Exchange Act disclosing that a change in control of the Company
has or may have occurred or will or may occur in the future pursuant to any
then existing contract or transaction.

 

(d)           “Expenses” shall
include all out-of-pocket costs of any type or nature whatsoever (including,
without limitation, all attorneys’ fees and related disbursements), actually
and reasonably incurred by the Indemnitee in connection with either the
investigation, defense or appeal of a Proceeding or establishing or enforcing a
right to indemnification under this Agreement, or Section 145 or
otherwise; provided, however, that “Expenses” shall not include any judgments,
fines, ERISA excise taxes or penalties, or amounts paid in settlement of a
Proceeding.

 

(e)           “Independent Counsel”
means a law firm, or a partner (or, if applicable, member) of such a law firm,
that is experienced in matters of corporation law and neither currently is, nor
in the past five years has been, retained to represent: (i) the Company or
the Indemnitee in any matter material to either such party or (ii) any
other party to or witness in the proceeding giving rise to a claim for
indemnification hereunder. Notwithstanding the foregoing, the term “Independent
Counsel” shall not include any person who, under the applicable standards of
professional conduct then prevailing, would have a conflict of interest in
representing either the Company or the Indemnitee in an action to determine the
Indemnitee’s rights under this Agreement.

 

(f)            “Proceeding” means any
threatened, pending, or completed action, suit or other proceeding, whether
civil, criminal, administrative, or investigative.

 

(g)           “Subsidiary” means any
corporation of which more than 50% of the outstanding voting securities is
owned directly or indirectly by the Company, by the Company and one or more
other subsidiaries, or by one or more other subsidiaries.

 

2.                Agreement to Serve. The Indemnitee agrees
to serve and/or continue to serve as an Agent of the Company, at its will (or
under separate agreement, if such agreement exists), in the capacity the
Indemnitee currently serves as an Agent of the Company, so long as the
Indemnitee is duly appointed or elected and qualified in accordance with the
applicable provisions of the Bylaws of the Company or any subsidiary of the
Company or until such time as the Indemnitee tenders his or her resignation in

 

2

 

writing; provided, however, that nothing contained in this
Agreement is intended to create any right to continued employment by the
Indemnitee.

 

3.                Liability Insurance.

 

(a)           Maintenance
of D&O Insurance. The Company hereby covenants and agrees that, so long
as the Indemnitee shall continue to serve as an Agent of the Company and
thereafter so long as the Indemnitee shall be subject to any possible
Proceeding by reason of the fact that the Indemnitee was an Agent of the
Company, the Company, subject to Section 3(c), shall promptly obtain and
maintain in full force and effect directors’ and officers’ liability insurance
(“D&O Insurance”)
in reasonable amounts from established and reputable insurers, as more fully
described below.

 

(b)           Rights
and Benefits. In all policies of D&O Insurance, the Indemnitee shall
qualify as an insured in such a manner as to provide the Indemnitee the same
rights and benefits as are accorded to the most favorably insured of the
Company’s independent directors (as defined by the insurer) if the Indemnitee
is such an independent director; of the Company’s non-independent directors if
the Indemnitee is not an independent director; of the Company’s officers if the
Indemnitee is an officer of the Company; or of the Company’s key employees, if
the Indemnitee is not a director or officer but is a key employee.

 

(c)           Limitation
on Required Maintenance of D&O Insurance. Notwithstanding the
foregoing, the Company shall have no obligation to obtain or maintain D&O
Insurance if the Company determines in good faith that: such insurance is not
reasonably available; the premium costs for such insurance are disproportionate
to the amount of coverage provided; the coverage provided by such insurance is
limited by exclusions so as to provide an insufficient benefit; the Indemnitee
is covered by similar insurance maintained by a subsidiary of the Company; the
Company is to be acquired and a tail policy of reasonable terms and duration is
purchased for pre-closing acts or omissions by the Indemnitee; or the Company
is to be acquired and D&O Insurance will be maintained by the acquirer that
covers pre-closing acts and omissions by the Indemnitee.

 

4.                Mandatory Indemnification. Subject to the terms of
this Agreement:

 

(a)           Third
Party Actions. If the Indemnitee is a person who was or is a party or is
threatened to be made a party to any Proceeding (other than an action by or in
the right of the Company) by reason of the fact that the Indemnitee is or was
an Agent of the Company, or by reason of anything done or not done by the
Indemnitee in any such capacity, the Company shall indemnify the Indemnitee
against all Expenses and liabilities of any type whatsoever (including, but not
limited to, judgments, fines, ERISA excise taxes and penalties, and amounts
paid in settlement) actually and reasonably incurred by the Indemnitee in
connection with the investigation, defense, settlement or appeal of such
Proceeding, provided the Indemnitee acted in good faith and in a manner the
Indemnitee reasonably believed to be in or not opposed to the best interests of
the Company, and, with respect to any criminal action or Proceeding, had no
reasonable cause to believe his or her conduct was unlawful.

 

(b)           Derivative
Actions. If the Indemnitee is a person who was or is a party or is
threatened to be made a party to any Proceeding by or in the right of the
Company by reason of the fact that the Indemnitee is or was an Agent of the
Company, or by reason of anything done or not done by the Indemnitee in any
such capacity, the Company shall indemnify the Indemnitee against all Expenses
actually and reasonably incurred by the Indemnitee in connection with the
investigation, defense, settlement or appeal of such Proceeding, provided the
Indemnitee acted in good faith and in a manner the Indemnitee reasonably
believed to be in or not opposed to the best interests of the Company; except
that no indemnification under this Section 4(b) shall be made in respect
to any claim, issue or matter as to

 

3

 

which the Indemnitee shall have been finally adjudged to
be liable to the Company by a court of competent jurisdiction unless and only
to the extent that the Delaware Court of Chancery or the court in which such
Proceeding was brought shall determine upon application that, despite the
adjudication of liability but in view of all the circumstances of the case, the
Indemnitee is fairly and reasonably entitled to indemnity for such amounts
which the Delaware Court of Chancery or such other court shall deem proper.

 

(c)           Actions
where Indemnitee is Deceased. If the Indemnitee is a person who was or is a
party or is threatened to be made a party to any Proceeding by reason of the
fact that the Indemnitee is or was an Agent of the Company, or by reason of
anything done or not done by the Indemnitee in any such capacity, and if, prior
to, during the pendency of or after completion of such Proceeding the
Indemnitee is deceased, the Company shall indemnify the Indemnitee’s heirs,
executors and administrators against all Expenses and liabilities of any type
whatsoever to the extent the Indemnitee would have been entitled to
indemnification pursuant to this Agreement were the Indemnitee still alive.

 

(d)           Certain
Terminations. The termination of any Proceeding or of any claim, issue, or
matter therein by judgment, order, settlement, or conviction, or upon a plea of
nolo contendere or its
equivalent, shall not (except as otherwise expressly provided in this
Agreement) of itself create a presumption that the Indemnitee did not act in
good faith and in a manner which the Indemnitee reasonably believed to be in or
not opposed to the best interests of the Company or, with respect to any
criminal action or Proceeding, that the Indemnitee had reasonable cause to
believe that the Indemnitee’s conduct was unlawful.

 

(e)           Limitations.
Notwithstanding the foregoing, the Company shall not be obligated to indemnify
the Indemnitee for Expenses or liabilities of any type whatsoever for which
payment is actually made to or on behalf of the Indemnitee under an insurance
policy, or under a valid and enforceable indemnity clause, by-law or agreement.

 

5.                Indemnification for
Expenses in a Proceeding in Which the Indemnitee is Wholly or Partly Successful.

 

(a)           Successful
Defense. Notwithstanding any other provisions of this Agreement, to the
extent the Indemnitee has been successful, on the merits or otherwise, in
defense of any Proceeding (including, without limitation, an action by or in
the right of the Company) in which the Indemnitee was a party by reason of the
fact that the Indemnitee is or was an Agent of the Company at any time, the
Company shall indemnify the Indemnitee against all Expenses actually and reasonably
incurred by or on behalf of the Indemnitee in connection with the
investigation, defense or appeal of such Proceeding.

 

(b)           Partially
Successful Defense. Notwithstanding any other provisions of this Agreement,
to the extent that the Indemnitee is a party to or a participant in any
Proceeding (including, without limitation, an action by or in the right of the
Company) in which the Indemnitee was a party by reason of the fact that the
Indemnitee is or was an Agent of the Company at any time and is successful, on
the merits or otherwise, as to one or more but less than all claims, issues or
matters in such Proceeding, the Company shall indemnify the Indemnitee against
all Expenses actually and reasonably incurred by or on behalf of the Indemnitee
in connection with each successfully resolved claim, issue or matter.

 

(c)           Dismissal.
For purposes of this section and without limitation, the termination of any
claim, issue or matter in such a Proceeding by dismissal, with or without
prejudice, shall be deemed to be a successful result as to such claim, issue or
matter.

 

4

 

6.                Mandatory Advancement of
Expenses.
Subject to the terms of this Agreement and following notice pursuant to Section 7(a)
below, the Company shall advance all Expenses reasonably incurred by the
Indemnitee in connection with the investigation, defense, settlement or appeal
of any Proceeding to which the Indemnitee is a party or is threatened to be
made a party by reason of the fact that the Indemnitee is or was an Agent of
the Company (unless there has been a final determination that the Indemnitee is
not entitled to indemnification for such Expenses) upon receipt of (i) an
undertaking by or on behalf of the Indemnitee to repay the amount advanced in
the event that it shall ultimately be determined that the Indemnitee is not
entitled to indemnification by the Company and (ii) satisfactory
documentation supporting such Expenses. Such advances are intended to be an
obligation of the Company to the Indemnitee hereunder and shall in no event be
deemed to be a personal loan. The advances to be made hereunder shall be paid
by the Company to the Indemnitee within twenty (20) days following delivery of
a written request therefor by the Indemnitee to the Company.

 

7.                Notice and Other
Indemnification Procedures.

 

(a)           Notice
by Indemnitee. Promptly after receipt by the Indemnitee of notice of the
commencement of or the threat of commencement of any Proceeding, the Indemnitee
shall, if the Indemnitee believes that indemnification with respect thereto may
be sought from the Company under this Agreement, notify the Company in writing
of the commencement or threat of commencement thereof.

 

(b)           Insurance.
If the Company receives notice pursuant to Section 7(a) hereof of the
commencement of a Proceeding that may be covered under D&O Insurance then
in effect, the Company shall give prompt notice of the commencement of such
Proceeding to the insurers in accordance with the procedures set forth in the
respective policies. The Company shall thereafter take all necessary or
desirable action to cause such insurers to pay, on behalf of the Indemnitee,
all amounts payable as a result of such proceeding in accordance with the terms
of such policies.

 

8.                Defense. In the event the Company
shall be obligated to pay the Expenses of any Proceeding against the
Indemnitee, the Company shall be entitled to assume the defense of such
Proceeding, with counsel selected by the Company and approved by the Indemnitee
(which approval shall not be unreasonably withheld), upon the delivery to the
Indemnitee of written notice of its election so to do. After delivery of such
notice, and the retention of such counsel by the Company, the Company will not
be liable to the Indemnitee under this Agreement for any fees of counsel
subsequently incurred by the Indemnitee with respect to the same Proceeding,
provided that (i) the Indemnitee shall have the right to employ his or her
own counsel in any such Proceeding at the Indemnitee’s expense; and (ii) the
Indemnitee shall have the right to employ his or her own counsel in any such
Proceeding at the Company’s expense if (A) the Company has authorized the
employment of counsel by the Indemnitee at the expense of the Company, (B) the
Indemnitee shall have reasonably concluded that there may be a conflict of
interest between the Company and the Indemnitee in the conduct of any such
defense, (C) after a Change in Control not approved by a majority of the
members of the Board who were directors immediately prior to such Change in
Control, the employment of counsel by Indemnitee has been approved by
Independent Counsel, or (D) the Company shall not, in fact, have employed
counsel to assume the defense of such Proceeding.

 

(a)           Right
to Indemnification. In the event that Section 5(a) is
inapplicable, the Company shall indemnify the Indemnitee pursuant to this
Agreement unless, and except to the extent that, it shall have been determined
by one of the methods listed in Section 8(b) that the Indemnitee has
not met the applicable standard of conduct required to entitle the Indemnitee
to such indemnification.

 

(b)           Determination
of Right to Indemnification. A determination of the Indemnitee’s right to
indemnification hereunder shall be made at the election of the Board by (i) a
majority vote of

 

5

 

directors who are not parties to the Proceeding for which
indemnification is being sought, even though less than a quorum, or by a
committee consisting of directors who are not parties to the Proceeding for
which indemnification is being sought, who, even though less than a quorum,
have been designated by a majority vote of the disinterested directors, or (ii) if
there are no such disinterested directors or if the disinterested directors so
direct, by Independent Counsel in a written opinion to the Board, a copy of
which shall be delivered to the Indemnitee , or (iii) by the stockholders
of the Company, or (iv) by a panel of three arbitrators, one of whom is
selected by the Company, one of whom is selected by the Indemnitee and the last
of whom is selected by the first two arbitrators so selected; provided, however, that, following any
Change in Control not approved by a majority of the members of the Board who
were directors immediately prior to such Change in Control, such determination
shall be made by an Independent Counsel as specified in clause (ii) above
or by a panel of arbitrators as specified in clause (iv) above.

 

(c)           Submission
for Decision. As soon as practicable, and in no event later than thirty
(30) days after the Indemnitee’s written request for indemnification, the Board
shall select the method for determining the Indemnitee’s right to
indemnification. The Indemnitee shall cooperate with the person or persons or
entity making such determination with respect to the Indemnitee’s right to
indemnification, including providing to such person, persons or entity upon
reasonable advance request any documentation or information which is not
privileged or otherwise protected from disclosure and which is reasonably
available to the Indemnitee and reasonably necessary to such determination. Any
Independent Counsel, member of the Board or stockholder of the Company shall
act reasonably and in good faith in making a determination regarding the
Indemnitee’s entitlement to indemnification under this Agreement.

 

(d)           Application
to Court. If (i) the claim for indemnification or advancement of
Expenses is denied, in whole or in part, (ii) no disposition of such claim
is made by the Company within ninety (90) days after the request therefor, (iii)
the advancement of Expenses is not timely made pursuant to Section 6 of
this Agreement or (iv) payment of indemnification is not made pursuant to Section 5
of this Agreement, the Indemnitee shall have the right to apply to the Delaware
Court of Chancery, the court in which the Proceeding is or was pending or any
other court of competent jurisdiction, for the purpose of enforcing the
Indemnitee’s right to indemnification (including the advancement of Expenses)
pursuant to this Agreement.

 

(e)           Expenses
Related to the Enforcement or Interpretation of this Agreement. The Company
shall indemnify the Indemnitee against all reasonable Expenses incurred by the
Indemnitee in connection with any hearing or proceeding under this Section 8
involving the Indemnitee and against all reasonable Expenses incurred by the
Indemnitee in connection with any other proceeding between the Company and the
Indemnitee involving the interpretation or enforcement of the rights of the Indemnitee
under this Agreement, unless a court of competent jurisdiction finds that each
of the claims and/or defenses of the Indemnitee in any such proceeding was
frivolous or made in bad faith.

 

9.                Exceptions. Any other provision
herein to the contrary notwithstanding, the Company shall not be obligated:

 

(a)           Claims Initiated by Indemnitee. To indemnify or
advance Expenses to the Indemnitee with respect to Proceedings or claims
initiated or brought voluntarily by the Indemnitee and not by way of defense, with
a reasonable allocation where appropriate, unless (i) such indemnification
is expressly required to be made by law, (ii) the Proceeding was
authorized by the Board, (iii) such indemnification is provided by the
Company, in its sole discretion, pursuant to the powers vested in the Company
under the General Corporation Law of Delaware or (iv) the Proceeding is
brought to establish or enforce a right to indemnification under this Agreement
or any other statute or law or otherwise as required under Section 145 in
advance of a final determination;

 

6

 

(b)           Lack
of Good Faith. To indemnify the Indemnitee for any Expenses incurred by the
Indemnitee with respect to any Proceeding instituted by the Indemnitee to enforce
or interpret this Agreement, if a court of competent jurisdiction determines
that each of the material assertions made by the Indemnitee in such Proceeding
was not made in good faith or was frivolous;

 

(c)           Unauthorized
Settlements. To indemnify the Indemnitee under this Agreement for any
amounts paid in settlement of a Proceeding unless the Company consents to such
settlement, which consent shall not be unreasonably withheld;

 

(d)           Claims
Under Section 16(b). To indemnify the Indemnitee for Expenses and the
payment of profits made from the purchase and sale (or sale and purchase) by
the Indemnitee of securities of the Company within the meaning of Section 16(b)
of the Securities Exchange Act of 1934, as amended, or similar provisions of
state statutory law or common law; or

 

(e)           Payments
Contrary to Law. To indemnify or advance Expenses to the Indemnitee for
which payment is prohibited by applicable law.

 

10.              Non-Exclusivity. The provisions for
indemnification and advancement of Expenses set forth in this Agreement shall
not be deemed exclusive of any other rights which the Indemnitee may have under
any provision of law, the Company’s Certificate of Incorporation or Bylaws, the
vote of the Company’s stockholders or disinterested directors, other
agreements, or otherwise, both as to action in the Indemnitee’s official
capacity and as to action in another capacity while occupying the Indemnitee’s
position as an Agent of the Company, and the Indemnitee’s rights hereunder
shall continue after the Indemnitee has ceased acting as an Agent of the
Company and shall inure to the benefit of the heirs, executors and
administrators of the Indemnitee.

 

11.              Permitted Defenses. It shall be a defense
to any action for which a claim for indemnification is made under this Agreement
(other than an action brought to enforce a claim for Expenses pursuant to Section 6
hereof, provided that the required undertaking has been tendered to the
Company) that the Indemnitee is not entitled to indemnification because of the
limitations set forth in Sections 4 and 9 hereof. Neither the failure of the
Company (including its Board of Directors) or an Independent Counsel to have
made a determination prior to the commencement of such enforcement action that
indemnification of the Indemnitee is proper in the circumstances, nor an actual
determination by the Company (including its Board of Directors) or an
Independent Counsel that such indemnification is improper, shall be a defense
to the action or create a presumption that the Indemnitee is not entitled to
indemnification under this Agreement or otherwise.

 

12.              Subrogation. In the event the
Company is obligated to make a payment under this Agreement, the Company shall
be subrogated to the extent of such payment to all of the rights of recovery
under an insurance policy or any other indemnity agreement covering the
Indemnitee, who shall execute all documents required and take all action that
may be necessary to secure such rights and to enable the Company effectively to
bring suit to enforce such rights (provided that the Company pays the
Indemnitee’s costs and expenses of doing so), including without limitation by
assigning all such rights to the extent of such indemnification or advancement
of Expenses.

 

13.             Primacy of
Indemnification. The Company hereby acknowledges that the Indemnitee may have certain
rights to indemnification, advancement of expenses or liability insurance
provided by a third-party investor and certain of its affiliates (collectively,
the “Fund Indemnitors”). The Company hereby agrees that (i) it is the
indemnitor of first resort, i.e., its obligations to the Indemnitee under this
Agreement and any indemnity provisions set forth in its Certificate of
Incorporation, Bylaws or elsewhere

 

7

 

(collectively, “Indemnity Arrangements”) are primary, and
any obligation of the Fund Indemnitors to advance expenses or to provide
indemnification for the same expenses or liabilities incurred by the Indemnitee
is secondary and excess, (ii) it shall advance the full amount of expenses
incurred by the Indemnitee and shall be liable for the full amount of all
expenses, judgments, penalties, fines and amounts paid in settlement by or on
behalf of the Indemnitee, to the extent legally permitted and as required by
any Indemnity Arrangement, without regard to any rights the Indemnitee may have
against the Fund Indemnitors, and (iii) it irrevocably waives, relinquishes and
releases the Fund Indemnitors from any claims against the Fund Indemnitors for
contribution, subrogation or any other recovery of any kind arising out of or
relating to any Indemnity Arrangement. The Company further agrees that no
advancement or indemnification payment by any Fund Indemnitor on behalf of the
Indemnitee shall affect the foregoing, and the Fund Indemnitors shall be
subrogated to the extent of such advancement or payment to all of the rights of
recovery of the Indemnitee against the Company. The Company and the Indemnitee
agree that the Fund Indemnitors are express third party beneficiaries of the
terms of this Section 13.

 

14.              Survival of Rights.

 

(a)           All
agreements and obligations of the Company contained herein shall continue
during the period Indemnitee is an Agent of the Company and shall continue
thereafter so long as Indemnitee shall be subject to any possible claim or
threatened, pending or completed Proceeding by reason of the fact that
Indemnitee was serving in the capacity referred to herein.

 

(b)           The
Company shall require any successor to the Company (whether direct or indirect,
by purchase, merger, consolidation or otherwise) to all or substantially all of
the business or assets of the Company, expressly to assume and agree to perform
this Agreement in the same manner and to the same extent that the Company would
be required to perform if no such succession had taken place.

 

15.              Interpretation of
Agreement.
It is understood that the parties hereto intend this Agreement to be
interpreted and enforced so as to provide indemnification to the Indemnitee to
the fullest extent permitted by law, including those circumstances in which
indemnification would otherwise be discretionary.

 

16.              Severability. If any provision or
provisions of this Agreement shall be held to be invalid, illegal or
unenforceable for any reason whatsoever, (i) the validity, legality and
enforceability of the remaining provisions of the Agreement (including, without
limitation, all portions of any paragraphs of this Agreement containing any
such provision held to be invalid, illegal or unenforceable, that are not
themselves invalid, illegal or unenforceable) shall not in any way be affected
or impaired thereby, and (ii) to the fullest extent possible, the
provisions of this Agreement (including, without limitation, all portions of
any paragraph of this Agreement containing any such provision held to be
invalid, illegal or unenforceable, that are not themselves invalid, illegal or
unenforceable) shall be construed so as to give effect to the intent manifested
by the provision held invalid, illegal or unenforceable and to give effect to Section 15
hereof.

 

17.              Modification and Waiver. No supplement,
modification or amendment of this Agreement shall be binding unless it is in a
writing signed by both of the parties hereto. No waiver of any of the
provisions of this Agreement shall be deemed or shall constitute a waiver of
any other provisions hereof (whether or not similar) nor shall such waiver
constitute a continuing waiver.

 

18.              Notice. All notices, requests,
demands and other communications under this Agreement shall be in writing and
shall be deemed to have been duly given (a) upon delivery if delivered by
hand to the party to whom such notice or other communication shall have been
directed, (b) if mailed by certified

 

8

 

or registered mail with postage prepaid, return receipt
requested, on the third business day after the date on which it is so mailed, (c) one
business day after the business day of deposit with a nationally recognized
overnight delivery service, specifying next day delivery, with written
verification of receipt, or (d) on the same day as delivered by confirmed
facsimile transmission if delivered during business hours or on the next
successive business day if delivered by confirmed facsimile transmission after
business hours. Addresses for notice to either party shall be as shown on the
signature page of this Agreement, or to such other address as may have
been furnished by either party in the manner set forth above.

 

19.              Governing
Law. This Agreement shall be governed exclusively by and construed
according to the laws of the State of Delaware as applied to contracts between
Delaware residents entered into and to be performed entirely within Delaware.
This Agreement is intended to be an agreement of the type contemplated by Section 145(f) of
the General Corporation Law of Delaware.

 

20.              Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall
for all purposes be deemed to be an original but all of which together shall
constitute one and the same Agreement. Only one such counterpart signed by the
party against whom enforcement is sought needs to be produced to evidence the
existence of this Agreement.

 

The parties hereto have entered into this Indemnity
Agreement effective as of the date first above written.

 

	
  Indemnitee:

  	
   

  	
  The Company:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CONVIO, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
									

 

9

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