Document:

Exhibit 10.21

 

THESE WARRANTS HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.  THEY MAY NOT BE SOLD, OFFERED FOR SALE,
PLEDGED OR HYPOTHECATED IN THE ABSENCE OF (i) AN EFFECTIVE REGISTRATION
STATEMENT WITH RESPECT TO THE WARRANTS UNDER SUCH ACT, OR (ii) AN OPINION
OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT
REQUIRED.

 

ICOP DIGITAL, INC.

 

WARRANT

 

 

	
  Warrant to Purchase
  Shares of

  Common Stock

  	
  March 7,
  2005

  

 

This certifies that
pursuant to the terms of this Common Stock Warrant (this “Warrant”), for value
received, ICOP Digital, Inc, a Colorado corporation (the “Company”), hereby
grants to Investor Awareness, Inc. (the “Holder”), or its registered
assigns, the right to purchase from the Company Five thousand (5,000) shares of
the Company’s Common Stock, (the “Warrant Shares”) at an exercise price of Ten
Dollars ($10.00) per Warrant Share, (the “exercise Price”) upon the terms
contained herein.

 

1.               Exercise
of Warrant.

 

1.1           Exercise
Period.  Except as restricted as set
forth in § 1.2 below, Holder may exercise this Warrant, in whole or in
part, at any time and from time to time after March 7, 2005, (“Date of
Issuance”) and prior to 5:00 p.m. Chicago, Illinois time, on September 7,
2006, (the “Expiration Date”).

 

1.2           Procedure
for Exercising Warrant.  This Warrant
will be deemed to have been exercised at such time as the Company has received
all of the following items (the “Exercise Date”):

 

1.2.1                        A
completed Exercise Agreement, as described in Section 1.3 below, executed
by the person exercising all or part of the purchase rights represented by this
Warrant (the “Purchaser”);

 

1.2.2                        This
Warrant;

 

1.2.3                        If
this Warrant is not registered in the name of the Purchaser, an Assignment in
the form set forth in Exhibit B, evidencing the assignment of this
Warrant to the Purchaser and the consent of the Company thereto; and

 

1.2.4                        A
check payable to the Company in an amount equal to the product of the Exercise
Price multiplied by the number of

 

 

shares of Common
Stock being purchased upon such exercise.

 

Certificates representing shares of Common Stock
purchased upon exercise of this Warrant will be delivered by the Company to the
Purchaser within 10 days after the Exercise Date.  Unless this Warrant has expired or all of the
purchase rights represented hereby have been exercised, Company will prepare a
new Warrant, substantially identical hereto, representing the rights formerly
represented by this Warrant which have not expired or been exercised.  Company will deliver such new Warrant to the
person designated to receive it in the Exercise Agreement.

 

The Common Stock issuable upon the exercise of this
Warrant will be deemed to have been issued to the Purchaser on the Exercise
Date, and the Purchaser will be deemed for all purposes to have become the
record Holder of such Common Stock on the Exercise Date.

 

The issuance of certificates for shares of Common
Stock upon exercise of this Warrant will be made without charge to the Holder
or the Purchaser for any issuance tax in respect thereof or any other cost
incurred by the Company in connection with such exercise and the related
issuance of shares.

 

If, during the first year of the term of the Warrants,
the Company files a registration statement for the Public Offering then the
Warrants will not be exercisable until the earlier of 90 days after Public
Offering closes and one (1) year after filing the Public Offering
registration statement.

 

1.3                                 Exercise
Agreement.  The Exercise Agreement
will be substantially in the form set forth in Exhibit A hereto,
except that if the shares of Common Stock are not to be issued in the name of
the Holder, the Exercise Agreement will also state the name of the person to
whom the certificates representing the shares of Common Stock are to be issued,
and if the number of shares of Common Stock to be issued does not include all
the shares of Common Stock purchasable hereunder, it will also state the name
of the person to whom a new Warrant for the unexercised portion of the rights
hereunder is to be delivered.

 

1.4                                 Fractional
Shares.  The Company is not required
to issue any fraction of a share of Common Stock upon exercise of this Warrant.

 

1.5                                 Securities
Acts Compliance.  As a condition to
its delivery of the certificates representing the Common Stock, the Company may
require the Purchaser to deliver to the Company, in writing, representations
regarding the Purchaser’s sophistication, investment intent, acquisition for
his, her or its own account and such other matters as are reasonable and customary
for purchasers of securities in an unregistered private offering, and Company
may place conspicuously upon each certificate representing the Common Stock a
legend restricting the assignment, transfer or other disposition of the shares
of Common Stock, unless such shares have been registered or qualified under the
Act and applicable blue sky laws or there has been delivered to the

 

 

Company an opinion of counsel, satisfactory to the
Company, to the effect that such registration and qualification is not
required.

 

2                                          Subdivision
or Combination of Shares.  If the
Company at any time subdivides its outstanding shares of Common Stock into a
greater number of shares (including a stock split effected as a stock dividend)
or combines its outstanding shares of Common Stock into a lesser number of
shares, the number of shares issuable upon exercise of this Warrant will be
adjusted to such number as is obtained by multiplying the number of shares
issuable upon exercise of this Warrant immediately prior to such subdivision or
combination by a fraction, the numerator of which is the aggregate number of
shares of Common Stock outstanding immediately after giving effect to such
subdivision or combination and the denominator of which is the aggregate number
of shares of Common Stock outstanding immediately prior to such subdivision or
combination, and the Exercise Price will be correspondingly adjusted to such
amount as will, when multiplied by the number of shares issuable upon full
exercise of this Warrant (as increased or decreased to reflect each subdivision
or combination of outstanding shares of Common Stock, as the case may be),
equal the product of the Exercise Price in effect immediately prior to such
subdivision or combination multiplied by the number of shares issuable upon
exercise of this Warrant immediately prior to such subdivision or combination.

 

2.1                                 Effect
of Sale, Merger or Consolidation.  If
any capital reorganization or reclassification of the capital stock of the
Company, or consolidation or merger of the Company with another corporation, or
sale of all or substantially all of the Company’s assets to another
corporation, is effected after the date hereof in such a way that holders of
Common Stock will be entitled to receive stock, securities or assets with
respect to or in exchange for Common Stock, then, as a condition of such
reorganization, reclassification, consolidation, merger or sale, lawful and
adequate provision will be made whereby the Holder will thereafter have the
right to purchase and receive, upon the basis and the terms and conditions
specified in this Warrant and in lieu of the shares immediately theretofore
purchasable and receivable upon the exercise of this Warrant, such shares of
stock, securities or assets as may be issued or payable with respect to or in
exchange for a number of outstanding shares of Common Stock equal to the number
of shares of Common Stock immediately theretofore purchasable and receivable
upon the exercise of this Warrant, and in any such case appropriate provision
will be made with respect to the rights and interests of the Holder to the end
that the provisions of this Warrant (including, without limitation, provisions
for adjustments of the Exercise Price and of the number of shares issuable upon
the exercise of this Warrant) will thereafter be applicable, as nearly as may
be possible, in relation to any shares of stock, securities or assets
thereafter deliverable upon the exercise of this Warrant.  The Company will not effect any such
consolidation, merger or sale unless prior to or simultaneously with the
consummation thereof the successor corporation (if other than the Company)
resulting from such consolidation or merger or the corporation purchasing such
assets assumes, by written instrument executed and delivered to the Holder at
its last address appearing on the books of the Company, the obligation to
deliver to the Holder such shares of stock, securities or assets as, in
accordance with the foregoing sentence, the Holder may be entitled to purchase.

 

 

3                                          Cashless
Exercise.  In lieu of exercising
Warrants pursuant to the provisions of Section 1.2, the Holder shall have
the right to require the Company to convert the Warrants, in whole or in part
and at any time or times (the “Cashless Conversion Right”), into Warrant
Shares, as follows:  upon exercise of the
Cashless Conversion Right, the Company shall deliver to the Holder (without
payment by the Holder of any Exercise Price) that number of Warrant Shares
equal to the quotient obtained by dividing:

 

(i) 
the difference of:

 

A.                                   the
aggregate Fair Market Value immediately prior to the exercise of the Conversion
Right for all Warrant Shares issuable upon exercise of the portion of the
Warrants being converted, less

 

B.                                     the
aggregate Exercise Price for all such Warrant Shares immediately prior to the
exercise of the Conversion right,

 

By

 

(ii) the Fair Market
Value of one Share immediately prior to the exercise of the Cashless Conversion
Right.

 

For the purpose of this
agreement, the “Fair Market Value” shall equal the average 4 PM NY Time closing
bid price as reported on the Bloomberg system for the 10 trading days ending on
the trading day immediately preceding the delivery of an exercise notice to the
Company.

 

Upon exercise of any
Warrants hereunder the Company shall issue and cause to be delivered to or upon
the written order of the registered Holders of such Warrants and in such name
and names as such registered holders may designate, a certificate for the
Warrant Share or Warrant Shares issued upon such exercise of such
Warrants.  Any Persons so designated to
be named therein shall be deemed to have become holders of recorded of such
Warrant Share or Warrant Shares as of the date of exercise of such Warrants.  If less than all of the Warrants evidenced by
a Warrant certificate are exercised at any time, a new Warrant certificate or
Certificates shall be issued for the remaining number of Warrants evidenced by
such Warrant certificate.

 

Company hereby agrees to
fully cooperate with Holder in connection with Holder’s exercise of the Warrant
and sale of the subject shares.  Such
cooperation by Company shall include, without limitation, taking all actions
necessary and appropriate (including, without limitation, directing Company
counsel to issue an appropriate opinion letter at the Company’s expense) to
facilitate removal of the restrictive legend from the subject shares, in order
to enable Holder to sell the subject shares pursuant to Rule 144
immediately following the one year anniversary of the date hereof.

 

 

Holder shall have the
right to sell the underlying shares of common stock of Company following the
first anniversary of the date hereof,  in
accordance with Rule 144.

 

3.                                       Warrants
Not Callable.  The Warrants will be non-callable.

 

4.                                       Notice
to Holder of Adjustment.  Whenever
the number of shares purchasable upon exercise of this Warrant or the Exercise
Price is adjusted as herein provided, the Company will cause to be mailed to
the Holder notice setting forth the adjusted number of shares purchasable upon
the exercise of the Warrant and the adjusted Exercise Price and showing in
reasonable detail the computation of the adjustment and the facts upon which
such adjustment is based.

 

5.                                       Prior
Notice as to Certain Events.  In the
event the Company pays any dividend payable in cash or stock upon its Common
Stock or makes any distribution to the holders of its Common Stock, then the
Company will give prior written notice, by first class mail, postage prepaid,
addressed to the Holder at the address of such Holder as shown on the books of
Company, of the date on which (i) the books of Company will close or a
record taken for such dividend or distribution. 
Such notice will also specify the date as of which the holders of the
Common Stock of record will participate in said dividend or distribution.  Such written notice will be given not less
than 20 days prior to the record date in respect thereto.

 

6.                                       Reservation
of Common Stock.  Not later than the
date hereof, the Company will have authorized Common Stock in an amount
sufficient to permit the exercise in full of this Warrant.  At all times from and after such date, the
Company will reserve and keep available for issuance upon the exercise of
Warrants such number of its authorized but unissued shares of Common Stock as
will be sufficient to permit such exercise. 
Upon issuance, such shares of Common Stock will be validly issued, fully
paid and nonassessable.

 

7.                                       No
Voting Rights; Limitations of Liability. 
This Warrant does not confer upon the Holder hereof any voting rights or
other rights as a stockholder of the Company, either at law or equity.  The rights of the Holder are limited to those
expressed herein and the Holder by acceptance hereof, consents to and agrees to
be bound by and to comply with all the provisions of this Warrant.  No provision of this Warrant, in the absence
of affirmative action by the Holder to purchase Common Stock, and no
enumeration in this Warrant of the rights or privileges of the Holder, will
give rise to any liability of such Holder for the Exercise Price of Common
Stock purchasable by exercise hereof or as a stockholder of Company.

 

8.                                       Restrictions
on Transfer of Warrant.  This Warrant
and the Holder’s rights hereunder may not be transferred, assigned or subjected
to a pledge or security interest without the prior written consent of the
Company and unless transferred by surrender of this Warrant with a properly
executed Assignment (in the form of Exhibit B hereto) at the
principal office of the Company.  If the
Company determines that the proposed assignment is permitted pursuant to the
provisions hereof and the requirements of applicable securities law, the
Company will register the assignment of this Warrant in

 

 

accordance with the information contained in the
Assignment and will, without charge, execute and deliver a new Warrant or
Warrants in the name of the assignee or assignees named in such assignment
instrument and this Warrant will promptly be cancelled.  Conditions to the transfer of this Warrant or
any portion thereof will be that (i) the Holder must deliver to the
Company an opinion of counsel, reasonably satisfactory in form and substance to
the Company’s counsel, to the effect that the proposed transfer will not be in
violation of the Act or of any applicable state law and that (ii) the
proposed transferee deliver to the Company his, her or its written agreement to
accept and be bound by all of the terms and conditions of this Warrant.  The date the Company initially issues this
Warrant will be deemed to be the “Date of Issuance” of this Warrant regardless
of the number of times new certificates representing the unexpired and
unexercised rights formerly represented by this Warrant are issued.

 

The Holder acknowledges that this Warrant has not been
registered under the Act, and, except in the limited instance described in Section 6(a) above,
agrees not to sell, pledge, distribute, offer for sale, transfer or otherwise
dispose of this Warrant or any Common Stock issued upon its exercise in the
absence of (i) an effective registration statement as to this Warrant or
such Common Stock under the Act, or (ii) an opinion of counsel for Company
to the effect that such registration is not, under the circumstances, required.

 

9.                                       Miscellaneous.

 

9.1.                              Waiver.  No delay or failure of the Holder in
exercising any right, power, privilege or remedy under this Warrant will affect
such right, power, privilege or remedy or be deemed to be a waiver of the same
or any part thereof, nor will any single or partial exercise thereof or any
failure to exercise the same in any instance preclude any further or future
exercise thereof, or the exercise of any other right, power, privilege or
remedy.

 

9.2.                              Notices.  All notices, requests and consents hereunder
must be in writing.  Notices, requests
and consents to the Company will be effectively given and delivered when (a) sent
by facsimile to the Company at (913) 469-1662 or (b) mailed by first class
mail, postage prepaid, to the Company at its offices at 11011 King Street, Suite 260,
Overland Park, Kansas 66210.  Notices,
requests, and consents to the Holder will be effectively given and delivered
when sent by facsimile or mailed by first class mail, postage prepaid, to the
Holder at the facsimile number or address of the Holder appearing on the books
and records of the Company.  Either party
by notice to the other may from time to time change the facsimile number or
address for any such notice, request, or consent.

 

9.3.                              Governing
Law; Venue.  This Warrant and all
rights and obligations hereunder, including matters of construction, validity,
and performance, will be governed by and construed and interpreted in
accordance with the laws of the State of Colorado, without regard to the choice
or conflicts of laws rules of such state. 
The parties agree that venue for any suit, action, proceeding or
litigation arising out of or in relation to this Agreement will be in any
federal or state court in the State of Colorado having subject matter
jurisdiction.

 

 

9.4.                              Successors.  This Warrant will inure to the benefit of and
be binding upon the parties hereto and their respective successors and assigns;
provided, however, that this Warrant may not be assigned without
the prior written consent of the Company.

 

9.5.                              Headings
and Exhibits.  The headings used in
this Warrant are for convenience only and will not constitute a part of this
Warrant.  All of the exhibits attached
hereto are incorporated herein and made a part of this Warrant by reference
thereto.

 

9.6.                              Defined
Terms.  Any defined term utilized
herein shall be defined as provided for herein or as defined in the Principal
Terms of the Financing Terms Agreement (hereinafter “Principal Terms”),
attached hereto as Exhibit ”A”.  To
the extent there exists any conflict in the definition of a term, the
definition contained in the Principal Terms shall control.

 

IN WITNESS WHEREOF, this Warrant has been executed and
delivered by a duly authorized representative of the Company on the day and
year first above written.

 

	
   

  	
  ICOP Digital, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  David C. Owen, President/CEO

  

 

 

EXHIBIT ”A”

 

Exercise Agreement

 

	
  To: ICOP DIGITAL, INC

  	
  Dated:   

  	
   

  

 

The undersigned, pursuant to the provisions set forth
in the within Warrant, hereby agrees to subscribe for and purchase                                                                           
shares of the Common Stock covered by such Warrant and makes payment herewith
in full for such Common Stock at the price per share provided by such Warrant.

 

The undersigned requests that a certificate for the
shares of Common Stock be issued as follows:

 

	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

and, if said number of shares is not all the shares of
Common Stock purchasable hereunder, that a new Warrant for the balance of the
remaining shares of Common Stock purchasable under the within Warrant be
registered in the name of, and delivered to, the undersigned at the address
stated below:

 

	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  HOLDER:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Signature:

  	
   

  	
   

  
								

 

 

EXHIBIT ”B”

 

Assignment

 

To be executed by the registered Holder to request a
permitted transfer of the attached Warrant.

 

	
  FOR VALUE RECEIVED

  	
   

  
	
   

  	
   

  
	
   

  	
   (“Assignor”)

  
	
   

  	
   

  
	
  hereby sells, assigns
  and transfers unto

  
	
   

  	
   

  
	
   

  	
   (“Assignee”)

  
	
  (Name)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Address)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

 

 

the right to purchase shares of Common Stock of ICOP
DIGITAL, INC. evidenced by the attached Warrant, together with all right, title
and interest therein, and does irrevocably constitute and appoint                                                   
attorney to transfer the said right on the books of said corporation with full
power of substitution in the premises.

 

	
  Date:

  	
   

  	
   

  	
  Assignor:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Its

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signature:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  APPROVED:

  	
  ICOP DIGITAL, INC

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Its

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SignatureExhibit 10.22

 

COMMERCIAL LEASE

 

between

 

116 RENNER PARTNERS, L.L.C.

 

LESSOR

 

and

 

ICOP DIGITAL, INC.

 

LESSEE

 

 

Dated April 12, 2005

 

 

Salient Lease Terms

 

	
  Lease Date:

  	
  April 12, 2005

  
	
   

  	
   

  
	
  Lessor:

  	
  116 Renner Partners, L.L.C.

  
	
  Lessor
  Address:

  	
  10902 S.
  120th Terrace, Overland Park, KS 66213

  
	
  Lessor
  Phone:

  	
  (913)

  
	
  Lessor Fax:

  	
  (913)

  
	
   

  	
   

  
	
  Lessee:

  	
  ICOP Digital, Inc:

  
	
  Lessee
  Address:

  	
  16801 W. 116th
  Street, Lenexa, KS 66219

  
	
  Lessee
  Phone:

  	
  (913) 338-5550

  
	
  Lessee Fax:

  	
  (913) 469-1662

  
	
   

  	
   

  
	
  Building:

  	
   

  
	
   

  	
   

  
	
  Premises:

  	
  All of Building B, a 12,800 square foot building at 116th &
  Renner, Lenexa, Kansas as shown on the floor plan(s) included as exhibit B
  attached hereto

  
	
   

  	
   

  
	
  Commencement
  Date:

  	
  July 1,
  2005

  
	
   

  	
   

  
	
  Initial
  Lease Term:

  	
  Five (5) years

  
	
   

  	
   

  
	
  Initial
  Lease Term Expiration Date:

  	
  June 30,
  2010

  
	
   

  	
   

  
	
  Renewal
  Term:

  	
  Two (2) renewal terms of Five (5) years each

  
	
   

  	
   

  
	
  Renewal Term
  Basic Rent:

  	
  $176,000.00 per annum

  
	
   

  	
   

  
	
  Lessee’s Pro Rata Share of Centre:

  	
   

  
	
   

  	
   

  
	
  Additional Rent:

  	
  As provided
  throughout this Lease:

  
	
   

  	
   

  
	
  Prepaid Rent:

  	
   

  
	
   

  	
   

  
	
  Security Deposit:

  	
  Sixty Thousand ($60,000.00) Dollars

  
	
   

  	
   

  
	
  Brokers:

  	
  White and Associates 

  Fishman and Company Realtors

  

 

 

THIS
COMMERCIAL LEASE (the “Lease”) is made as of the       
day of April, 2005 between 116 Renner Partners, L.L.C., a Kansas Limited Liability
Company, having an address of 10902 S. 120th Terrace, Overland Park,
Kansas 66213, (“LESSOR”), and ICOP Digital, Inc., 16801 W. 116th
Street, Lenexa, KS 66219, (“LESSEE”).

 

LESSOR hereby
leases to LESSEE and LESSEE hereby leases from LESSOR, the following described
premises in the City of Lenexa, Johnson County, Kansas :

 

The 12,800 sq. ft. building located at 16801
W. 116th Street, Lenexa, KS 66219 that is more particularly
described by the site plan and other descriptions attached hereto collectively
on Exhibit A as Building B Lot B, being leased to Lessee hereunder and so
designated on Exhibit A, together with all of the improvements,
structures, fixtures, and appurtenances now or hereafter erected or permitted
therein pursuant to this Lease are collectively referred to herein as the “Premises”
together with the non-exclusive right of access to the Premises through all
driveways from public streets and reciprocal easement agreement affecting the
property.  All parking, loading and green
space areas adjacent thereto legally described on the attached Exhibit A are collectively referred to herein as the “Common Areas”.

 

1.             TERM:

 

1.1           The term of this Lease (the “Term”)
shall commence on July 1, 2005, and shall continue for five (5) years,
ending on June 30, 2010, unless sooner terminated in accordance with the
provisions hereof.

 

1.2           Should the tenant improvements
provided for in this Lease be completed on or before, then Lessee will take
possession of the Premises on July 1, 2005 subject to the terms and
conditions hereof and shall pay the rent provided for in section 2.2
hereof.

 

1.3           Providing that LESSEE shall not then be in default hereunder,
LESSEE shall have two (2) five-year options to extend the Term,
exercisable by giving written notice of exercise of such to LESSOR given not
later than one hundred eighty (180) days prior to the end of the initial Term
with respect to the first five year option and not later than one hundred
eighty (180) days prior to the end of the First Extended Term with respect to
the Second Five Year option..

 

2.             RENTAL: The basic rental for the
Premises shall be as follows:

 

2.1 For the
period commencing with the Commencement Date and ending five years following
the first day of the first full month following the Commencement Date, basic
rental shall be One Hundred Seventy-Six thousand ($176,000.00) Dollars per
annum, payable in equal monthly installments of Fourteen Thousand Six Hundred
Sixty-six & 67/100 ($14,666.67) Dollars.

 

2.2 For the
first optional extension of the term (the period commencing July 1, 2010
and ending June 30, 2015), annual basic rental shall be equal to the rate
for the Initial Term plus that 

 

1

 

percent
of Base rent for the initial term equal to the percentage increase in the
Consumer Price Index between the Commencement Date of the Lease and the last
date of the Initial Term. For the second optional extension of the term (the
period commencing July 1, 2015 and ending June 30, 2020), annual
basic rental shall be equal to the rate for the Initial Term plus that percent
of Base rent for the initial term equal to the percentage increase in the
Consumer Price Index between the Commencement date of the Lease and the date of
the termination of the first optional extension. The term Consumer Price Index
shall mean the Midwest Region, all urban index published by the Bureau of Labor
Statistics (1982-1984 = 100).

 

2.3 The basic
rental for the Premises shall be paid without deduction or setoff, each due and
payable to LESSOR on the first day of each and every month of the Term in
advance, at the above address (or such other place as LESSOR may designate from
time to time). Any rentals or additional rentals not received by LESSOR within
ten (10) days after the due date set forth herein shall be subject to a
late charge of five percent (5%) of the amount thereof, in accordance with Section 24
herein; provided, however, that in the event that rentals are received more
than ten (10) days late twice in any twelve (12) month period, then for a
period of twelve (12) months thereafter, the late charge shall be ten (10%)
percent for any rents or additional rents which are received ten (10) or
more days late. Failure by LESSEE to pay said late charge shall constitute a
default of this Lease by LESSEE.

 

3. TENANT
IMPROVEMENTS: LESSOR is to prepare the Premises for LESSEE’S use and occupancy
by constructing the improvements as set forth in the plans and specifications
attached as Exhibits B which are incorporated herein by this reference (the “Tenant
Improvements”). All such plans and specifications must be approved by LESSEE
and LESSOR and the contractor constructing such tenant improvements prior to
letting of the Construction Contract, which approval shall not be unreasonably
withheld or delayed. The Tenant Improvements are estimated to cost Two Hundred
Seventy-Five Thousand and no/100 ($275,000.00) Dollars (the “Improvement Costs”).
LESSOR agrees to pay the first $275,000 of such Improvement Costs. Should the
actual costs for the Tenant Improvements exceed $275,000.00, then LESSEE agrees
to pay 100% of the excess costs on the day its securities offering is funded
but in no event later than August 1, 2005. LESSOR will construct the
Tenant improvements in accordance with those certain plans and drawings
attached as Exhibit B and prepared by Nolte & Associates, P.A.
(the Lessee Finish Architects) and dated March 8,2005
as approved by LESSOR (such plans and drawings, other plans and specifications
and any supplement, amendment or other modifications of any of the foregoing
hereafter made being collectively referred to herein as the “Lessee’s Plans”).
In addition, LESSEE shall pay LESSEE’S architectural tenant finish fees to
Nolte & Associates prior to the close of LESSEE’S securities offering.
Upon funding of such offering, but in no event later than August 1, 2005,
LESSOR shall reimburse LESSEE for all such architectural fees which have been
paid by LESSEE and shall be the party responsible to pay any remaining or
future fees due such architect for its services in connection with the leased
premises. Nolte & Associates fees are not part of the Improvement
Costs subject to the $275,000 maximum to be paid by Lessor.

 

4.             POSSESSION AT BEGINNING OF TERM:

 

4.1           LESSOR
shall use due diligence to give possession as early as possible upon signing of
the Lease. It is understood that if LESSOR shall be unable to give LESSEE

 

2

 

occupancy of
the Premises hereby leased at the time above provided, LESSOR shall not be
liable for damages to the LESSEE therefor, but during the period LESSEE shall
be unable to occupy said Premises as hereinbefore provided, the rental therefor
shall be abated and at the option of LESSOR the Term may be extended to the
full original Term recited in Section 1 herein, and the commencement date
of this Lease, ending date and option dates (if any) shall be modified in
accordance therewith. LESSOR shall use due diligence to cause the Tenant
Improvements to be substantially completed on or before the commencement date.

 

4.2           Left
Blank Intentionally.

 

4.3           Notwithstanding
the provisions of Section 4.1 hereof, LESSEE shall be given access to the
Premises on July 1, 2005, solely for the purpose of allowing LESSEE to
commence installation of fixtures, racks and other improvements. Such prior
occupancy shall be subject to the terms of this Lease except that LESSEE shall
have no obligation to pay any rent for the period prior to July 1, 2005,
unless LESSEE commences the conduct of all or any part of its business from the
premises prior to such date and takes possession of the Premises in accordance
with Section 1.2.

 

5.             PERMITTED USE OF PREMISES:  LESSEE covenants, warrants and represents to
LESSOR that the Premises shall be used and occupied only for the conduct of
business lawful in the State of Kansas and permissible under current zoning by
the City of Lenexa and as will not adversely affect the building structure,
floor and other paving, and for no other purpose. LESSEE shall not use the
Premises for any other purpose without first having secured the written consent
of LESSOR. LESSEE shall occupy the leased Premises, conduct its business and
control its agents, employees, invitees and visitors in such a way as is
lawful, reputable and will not create any nuisance or otherwise interfere with,
annoy or disturb any neighbors. LESSEE shall not commit or suffer to be
committed any waste on the leased Premises. Nor shall LESSEE use the Premises
for storage or processing of any toxic or hazardous materials, pesticides,
solvents, flammable products without LESSOR’S written consent in each instance.

 

6.             INSURANCE:  LESSEE shall pay to LESSOR, during the term
hereof, as additional rent, its pro rata share of the insurance premiums for
any property insurance carried by LESSOR covering the Building (the “Building
Insurance Premium”). Such pro rata share is defined as that fraction of the
insurance premiums the numerator of which is the total square footage in the
Premises and the denominator of which is the total square footage in all
premises to which the Building Insurance Premium is applicable. In the event
that the property insurance carried by LESSOR covering the Building is a
blanket policy in which other properties not related to the Building are
included, the Building Insurance Premium shall be calculated as that portion of
such blanket policy insurance premium which, in LESSOR’S good faith judgment,
is properly allocable to the Building. The sum due under this paragraph shall
be in addition to that which may be due under any other paragraph of this Section 6.
LESSEE shall pay any such premium portion to LESSOR within ten (10) days
after receipt by LESSEE of LESSOR’S billing therefor.

 

LESSOR may, at
its option, estimate the amount of insurance premiums for property insurance to
be due in the future from LESSEE and collect from LESSEE on a monthly or
quarterly basis, at LESSOR’S option, the amount of LESSEE’S estimated insurance
premium 

 

3

 

obligation.
Prior to April 1st of each year, LESSOR shall provide LESSEE with a
reconciliation of LESSEE’S account along with a billing for any shortage in the
event of a deficiency or statement for credit applicable to the next ensuing
insurance premium payments, if an overpayment has been made by LESSEE. For the
year 2005, LESSEE’S pro rata share for insurance premiums is estimated to be
Five Hundred Dollars ($500.00) per month.

 

No use shall
be made or permitted to be made on the Premises, nor acts done, which will
increase the existing rate of insurance upon the Building in which the Premises
are located or cause the cancellation of any insurance policy covering the
Building, or any part thereof, nor shall LESSEE sell, or permit to be kept,
used or sold, in or about the Premises, any article which may be
prohibited by the standard form of “All Risk” fire insurance policies. LESSEE
shall, at its sole cost and expense, comply with any and all requirements
pertaining to the Premises, of any insurance organization or company, necessary
for the maintenance of reasonable property damage and commercial general
liability insurance, covering the Premises or the Building.

 

LESSEE agrees
to pay to LESSOR, as additional rent, (1) any increase in premiums on
policies which may be carried by LESSOR on the Premises, or the Building, or
any blanket policies which include the Building, covering damage thereto and
loss of rent caused by fire and other perils above the rates for the least
hazardous type of occupancy for industrial warehousing, office and distribution
operations, and (2) all increases in such premiums resulting from the
nature of LESSEE’S occupancy or any act or omission of LESSEE. All payments of
additional rent by LESSEE to LESSOR pursuant to this Section shall be made
within ten (10) days after receipt by LESSEE of the LESSOR’S billing
therefor.

 

LESSEE shall
maintain in full force and effect on all of its fixtures, furniture, equipment
and other business personal property in the Premises a policy or policies
providing protection against any peril included within the classification “All
Risk” to the extent of at least ninety percent (90%) of their replacement cost,
or that percentage of the replacement cost required to negate the effect of a
co-insurance provision, whichever is greater. No such policy shall have a
deductible in a greater amount than Five Thousand Dollars ($5,000.00). LESSEE
shall also insure in the same manner the physical value of all its leasehold
improvements and alterations in the Premises. During the term of this Lease,
the proceeds from any such policy or policies of insurance shall be used for
the repair or replacement of the fixtures, equipment, and leasehold
improvements so insured. LESSEE shall also maintain insurance for all plate
glass upon the Premises. All insurance specified in this Section to be
maintained by LESSEE shall be maintained by LESSEE at its sole cost.

 

LESSEE shall,
at LESSEE’S expense, obtain and keep in force during the term of this Lease, a
commercial general liability insurance policy insuring LESSEE against the risks
of bodily injury and property damage, personal injury, contractual liability,
completed operation, owned and non-owned automobile liability arising out of
the ownership, use, occupancy or maintenance of the Premises and all areas
appurtenant thereto. Such insurance shall be a combined single limit policy in
an amount not less that One Million and no/100 ($1,000,000.00) Dollars per
occurrence with a One Million and no/100 ($1,000,000.00) Dollar annual
aggregate and an umbrella policy of Five Million and no/100 ($5,000,000.00) for
any one occurrence. LESSOR and any lender or another party in interest
designated by LESSOR shall be named as additional insured(s). The policy shall
contain a cross liability endorsement and shall insure performance by LESSEE of
the indemnity provisions of this Lease; shall cover contractual 

 

4

 

liability;
shall be primary, not contributing with, and not in excess of coverage which
LESSOR may carry; shall state that LESSOR is entitled to recovery for the
negligence of LESSEE even though LESSOR is named as an additional insured;
shall provide for severability of interests; shall provide that an act or
omission of one of the insured or additional insured which would void or
otherwise reduce coverage after the term of this Lease (by separate policy or
extension if necessary) for all claims based on acts, omissions, injury or
damage which occurred or arose (or the onset of which occurred or arose) in whole
or in part during the term of this Lease. The limits of said insurance shall
not limit any liability of LESSEE hereunder. Not more frequently than annually,
if, in LESSOR’S judgment, the amount of liability insurance required hereunder
is not adequate, LESSEE shall promptly increase said insurance coverage as
required by LESSOR. LESSEE shall furnish LESSOR with a certificate or
certificates of insurance regarding such insurance so maintained by LESSEE,
naming LESSOR and LESSOR’S mortgagees as additional insureds and stating that
such insurance may not be modified or canceled, nor the coverage thereunder
reduced, except upon thirty (30) days’ prior written notice to LESSOR and
LESSOR’S mortgagees.

 

LESSEE shall
also carry insurance in at least the amounts reasonably required by LESSOR from
time to time against damage to the LESSEE’S contents and improvements caused by
water, including without limitation due to leaking from or failure of the roof,
walls or windows of any such building or other improvement in the Premises or
of which the Premises are a part. LESSEE shall also carry any other insurance
in at least the amounts as may from time to time be reasonably required by
LESSOR against other insurable hazards which at the time are commonly insured
against in the case of LESSEE’S contents and improvements. If the Premises or
the Building are subject to any mortgage(s), such mortgagee(s) shall have the
right of prior approval over any insurance policies, and LESSEE agrees to make
any changes in the same or to procure any additional insurance which such
mortgagee(s) may reasonably request.

 

All insurance
policies required to be carried by Lessee hereunder shall conform to the
following requirements: (a) The insurer in each case shall carry a
designation in “Best’s Insurance Reports” as issued form time to time
throughout the term as follows: Policyholder’s rating of A; financial rating of
not less than VII; (b) The insurer shall be qualified to do business in
the state of Kansas; (c) The policy shall be in a form and include such
endorsements as are acceptable to LESSOR; (d) Certificates of insurance
shall be delivered to Lessor at commencement of the term and certificates of
renewal at least thirty (30) days prior to the expiration of each policy; and (e) each
policy shall require that Lessor be notified in writing by the insurer at least
thirty (30) days prior to any cancellation or expiration of such policy, or any
reduction in the amount of insurance carried.

 

7.             INDEMNITY:  LESSEE covenants at all times to save LESSOR
harmless from all loss, liability, cost or damages that may occur or be claimed
with respect to any person or persons, corporation, or property on the Premises
resulting from any act done or omission by or through LESSEE, its agents,
employees, invitees, or any person on the Premises by reason of LESSEE’S use or
occupancy or resulting from LESSEE’S non-use or possession of the Premises and
any and all loss, cost liability, or expense resulting therefrom.

 

8.             TAXES:  The terms “Real Property Taxes” and “Taxes”
are used interchangeably.  Real Property
Taxes, as used in this Lease shall include all Real Property Taxes on the
building,

 

5

 

the
Building, the land on which the Building is situated, and the various estates
in the Building and the land, including this Lease, as well as all personal
property taxes levied on the property used in the operation of the Building or
land, whether or not now customary or within the contemplation of the parties
to this Lease. Taxes also shall include the reasonable cost to Lessor of
contesting the amount, validity, or applicability of any Taxes mentioned in
this Section. Further included in the definition of Taxes herein shall be
general and special assessments, fees of every kind and nature, commercial
rental tax, levy, penalty or tax (other than inheritance or estate taxes)
imposed by any authority having the direct or indirect power to tax, as against
any legal or equitable interest of LESSOR in the Premises, the Building or in
the real property of which the Premises and the Building are a part, as against
LESSOR’S right to rent or other income therefrom, or as against LESSOR’S
business of leasing the Premises, the Building or in the real property of which
the Premises and the Building are a part, any tax, fee, or charge with respect
to the possession, leasing, transfer of interest, operation, management,
maintenance, alteration, repair, use or occupancy by LESSEE, of the Premises or
any portion thereof, or the Building or any tax imposed in substitution,
partially or totally, for any tax previously included within the definition of
Taxes herein, or any additional tax, the nature of which may or may not have
been previously included within the definition of Taxes. The term “Real
Property Taxes” or “Taxes” shall not include any tax which may be levied upon
or against the net income or profits of LESSOR or its successors or assigns.

 

With respect
to any general or special assessments which may be levied upon or against the
Premises or the Building, or the underlying realty, or which may be evidenced
by improvement or other bonds, and which may be paid in annual or semi-annual
installments, only the current amount of such installment, pro rated for any
partial year, and statutory interest, shall be included within the computation
of Taxes for which LESSEE is responsible hereunder.

 

LESSEE shall
pay, as additional rent, to LESSOR, within Twenty (20) days after receipt of
billing, all of Real Property Taxes stated in the tax bill for the Premises,
including the parking and Common Areas as shown on Exhibit A. Site Plan

 

LESSOR may, at
its option, estimate the amount of Taxes next due and collect from LESSEE on a
monthly or quarterly basis, at LESSOR’S option, the amount of LESSEE’S estimated
tax obligation. Within a reasonable period following the end of each tax fiscal
year during the term, LESSOR shall provide LESSEE with a reconciliation of
LESSEE’S account with respect to such estimated tax payments. In event it is
established upon such reconciliation that LESSEE has not paid sufficient amount
in estimated tax payments to cover its pro rata share for the year in question,
LESSEE shall pay to LESSOR the full amount of any such shortage within Twenty
(20) days of date of billing. If it is established that LESSEE has made an
overpayment of its tax obligation upon such reconciliation, LESSEE shall
receive a credit applicable to the next ensuing estimated tax payments. For the
year 2005, LESSEE’S pro rata share for taxes is estimated to be One Thousand
Nine Hundred Dollars ($1,900.00) per month

 

LESSEE shall
pay prior to delinquency all Taxes assessed against and levied upon trade
fixtures, furnishings, equipment and all other personal property of LESSEE
contained in the Premises or elsewhere. When possible, LESSEE shall cause such
trade fixtures, furnishings, equipment and all other personal property to be
assessed and billed separately from the real property of LESSOR. If any of LESSEE’S said personal property shall be assessed with LESSOR’S
real property, LESSEE shall pay LESSOR Taxes attributable to LESSEE within 

 

6

 

Twenty (20)
days after receipt of a written statement setting forth the Taxes applicable to
LESSEE’S property.

 

It is the intention
of LESSOR and LESSEE that the rental received by LESSOR be net of any Taxes of
any sort to be paid by LESSOR, subject to the exclusions stated herein. In the
event it shall not be lawful for LESSEE to reimburse LESSOR for any of the
Taxes covered by this Section, the Basic Rent payable to LESSOR under the terms
of this Lease shall be increased by the amount of the portion allocable to
LESSEE so as to net to LESSOR the amount which would have been receivable by
LESSOR if such tax had not been imposed.

 

Unless
hereafter waived in writing by LESSOR as to the taxes or assessments for the
Premises or Building for a given year, LESSEE and LESSOR shall have the
concurrent right to appeal or contest, the valuation, classification and any
other factor employed in calculating taxes and assessments on the Premises and
the Building. Should LESSEE choose not to appeal or contest the Taxes and
LESSOR pursues such appeal in good faith, LESSEE shall reimburse LESSOR for
LESSEE’S proportionate share of the cost and expense incurred by LESSOR in any
such appeal or contest within fifteen (15) days of receipt of an invoice or
statement therefor from the LESSOR; provided that if LESSEE acts as LESSOR’S
agent in making any appeal or contest of taxes, assessments or valuation,
LESSEE shall be solely responsible for all costs incurred in such appeal or
contest and at all times shall either keep the premises free and clear from any
tax or other lien during the pendency of the contest or appeal or shall deposit
with the LESSOR a sum equal to the amount that the LESSOR would need to pay,
including all interest and penalties, in order to release the Premises and
Building from any such tax or other lien, immediately upon a final,
non-appealable determination of the LESSEE’S contest or appeal and sooner if
reasonably necessary in LESSOR’S determination to prevent a sooner sale of the
Premises or Building.

 

9. MAINTENANCE &
REPAIRS BY LESSEE:  LESSEE shall at its
own cost and expense keep and maintain all parts of the Premises in good
condition, promptly making and performing all regular maintenance, necessary
repairs and replacements, including but not limited to, windows, glass and
plate glass, doors, overhead doors, sliding doors, door tracks, frames, any
special office entry, exterior stairways, interior walls and finish work,
floors and floor covering, heating and air-conditioning systems, mechanical &
electrical systems, dock boards, dock levelers and bumpers, pipe guards,
fences, gates, paving, plumbing work and fixtures, sewer lines, elevators and
alarm systems (if any), termite and pest extermination, regular removal of
trash and debris. LESSEE shall maintain a preventive maintenance contract
approved by LESSOR, providing for the regular inspection and maintenance of the
heating and air-conditioning systems by a licensed heating and air-conditioning
contractor. LESSEE shall also insure that the parking lot is not damaged by
placement or movement of trash containers, truck trailer dollies, etc. LESSEE
shall not damage any exterior or demising wall or disturb the integrity and
support provided by any wall or interior columns and shall, at its sole cost
and expense, promptly repair to LESSOR’S satisfaction any damage or injury to
any wall or column caused by LESSEE or its employees, agents or invitees.
LESSEE shall be responsible for any damage, to the extent the cost of repair or
replacement resulting therefrom is not reimbursed to LESSOR by LESSOR’S
insurer, caused by any burglary, attempted burglary or vandalism. Any equipment
installed on or removed from the roof or modifications made to the roof by
LESSEE must first be approved by LESSOR and flashed and mopped-in by LESSOR’S
roofing contractor at the LESSEE’S cost. Upon removal of any such roof top
equipment, whether during or at the

 

7

 

expiration
of the Lease, LESSEE shall repair the roof in a manner approved by LESSOR.
LESSEE shall not store, release or dispose of Hazardous Material (as that term
is defined in Section 46) at or on the leased Premises in violation of any
federal, state or local statute, law, ordinance, code, rule, regulation, order
or decree regulating, relating to, or imposing liability or standards of
conduct concerning any Hazardous Material (“Environmental Law”). If LESSEE
receives (a) any notice of violation or possible violation of any
Environmental Law affecting LESSEE or the Premises or any part thereof or (b) any
complaint, order, citation or notice with regard to any Hazardous Material or
any air emissions, water discharges, noise emissions or any other
environmental, health or safety matter affecting LESSEE or the Premises or any
part thereof from any court, governmental or quasi-governmental agency or any
other entity which is authorized by law to issue orders under any Environmental
Law or from anyone else, LESSEE shall give, within five (5) business days
of receipt of such notice, written notice thereof to LESSOR. All of LESSEE’S
obligations recited in Section 9 hereof shall be accomplished at LESSEE’S
sole expense. LESSOR represents and warrants that to the best of LESSOR’S
knowledge, the Premises do not contain any asbestos or hazardous or toxic
materials. If LESSEE fails to maintain or repair the Premises as required by
this provision, LESSOR may, upon thirty (30) days’ prior written notice to
LESSEE (except in the event of emergency, in which event no notice shall be
necessary), enter the Premises and perform such maintenance or repair on behalf
of LESSEE. In such case, LESSEE shall reimburse LESSOR as additional rent for
all costs incurred in performing such maintenance or repair within fifteen (15)
days of LESSOR’S notice of the amount so due hereunder. It is specifically
understood and agreed by the parties hereto that the LESSEE’S obligations under
this Section 9 shall survive the expiration of the Term or any holdover
period (whichever is longer) for a period of six (6) months. To the extent
assignable by LESSOR and available from any vendor or contractor and such are
for any work or materials, the maintenance of which are the responsibility of
LESSEE, LESSOR shall provide written assignment and acknowledgement assigning
all right, title and interest in any written or implied warranty, either from
an original equipment manufacture or contractor providing equipment or fixtures
upon the Premises and any general or sub-contractor which constructed any such
portion of the Premises.

 

10.           OUTSIDE STORAGE:  LESSEE understands and agrees that no
personal property shall be stored in the parking areas or anyplace outside of
the building without the prior written consent of LESSOR and any outside
storage so permitted shall be maintained only in accordance with the provisions
of such permission.  No trash, crates,
pallets or refuse shall be permitted anywhere on the outside of the Premises by
LESSEE.

 

11.           MAINTENANCE & REPAIRS BY
LESSOR:  LESSOR shall at its own cost and
expense keep and maintain the foundations, roof (excluding interior ceilings),
and exterior portions of the exterior walls (excluding sign and storefront) of
the Premises in good order, condition, maintenance and repair. LESSOR shall not
be deemed to have breached its obligation as set forth herein or be liable for
any damages resulting therefrom, unless LESSOR fails to make the required
repairs or replacement within a reasonable period (taking into consideration
the type of repair involved) after receiving notice from LESSEE of the need
therefor.

 

12. LESSOR’S
RIGHT OF ENTRY:  LESSOR and/or LESSOR’S
agents may enter the Premises at reasonable hours and on reasonable notice to
examine the same and to do anything LESSOR may be required to do hereunder or
which LESSOR may deem necessary for the good 

 

8

 

of
the Premises, and, during the last six (6) months of the Term, LESSOR may
display a sign on and show the Premises for lease. If LESSEE fails to maintain
the Premises in good and sanitary order, condition and repair or repair any
damage caused by it or any of its agents, employees, invitees or licensees, LESSOR
shall have the right but no obligation, in addition to all other rights and
remedies available to LESSOR under this Lease or by law, to enter the Premises
(upon reasonable notice except in case of emergency, in which event no notice
shall be required) and to do such acts and expend such funds at the expense of
LESSEE as are reasonably required to keep the Premises in good and sanitary
order, condition and repair. Any amount so expended by LESSOR shall be
reimbursed by LESSEE as additional rent within fifteen (15) days from the date
of LESSOR’S notice of the amounts so expended. LESSOR’S entry into the Premises
shall not unreasonably interfere with LESSEE’S business conducted therein.
Notwithstanding the foregoing, the preceding sentence shall be of no force or
effect with respect to any entry by LESSOR made for the purpose of responding
to emergencies. LESSOR shall have no liability to LESSEE for any damage,
inconvenience or interference with the use of the Premises by LESSEE resulting
from LESSOR’S performance of maintenance or repair work; provided, however,
that this provision shall not excuse any willful or wanton misconduct by
LESSOR.

 

13.           SIGNS AND ADVERTISEMENTS:  LESSEE shall not put upon nor permit to be
put upon any part of the Premises any signs, billboards, or advertisements
whatever, including real estate signs, without the prior written consent of
LESSOR and subject to any applicable governmental laws, ordinances, regulations
and other applicable requirements. In no event shall signs be painted on the
exterior of the building. LESSEE shall remove all of its signage not later than
the termination date of this Lease. The installations and removals shall be
made in such manner as to avoid damage or defacement of the building and other
improvements, and LESSEE shall repair any damage or defacement, including
without limitation, discoloration caused by such installation and/or removal.

 

14.           ASSIGNMENT AND SUBLETTING:  LESSEE shall not have the right to assign
this Lease or to sublet the whole or any part of the Premises without prior
written consent of LESSOR in each and every instance.

 

15.           DAMAGE BY CASUALTY:  If, during the Term or previous thereto, the
Premises hereby let or the Building of which said Premises are a part shall be
destroyed or shall be so damaged by fire or other casualty, as to become
untenantable, then in such event, at the option of LESSOR, the Term hereby
created shall cease as of the date of such damage or destruction and LESSEE
shall immediately surrender the Premises and all interest therein to LESSOR,
and LESSEE shall pay rent within said term only to the time of such surrender;
provided, however, that LESSOR shall exercise such option to so terminate this
Lease by notice in writing delivered to LESSEE within thirty (30) days after
such damage or destruction. In case LESSOR shall not so elect to terminate this
Lease, in such event, this Lease shall continue in full force and effect and
LESSOR shall repair the Premises with reasonable promptitude, placing the same
in as good a condition as they were at the time of the damage or destruction,
and, for that purpose, may enter said Premises. So long as LESSEE conducts its
business on the Premises without material reduction in LESSEE’S intended use,
there shall be no abatement of rent until the parties agree on an amount
therefore. Should the casualty or resulting repair cause
a material reduction in LESSEE’S intended use of the Premises, rent shall
equitably abate to the extent of any rent insurance payable to LESSOR. It is
further agreed that the period for reconstruction may be delayed for such time
during which strikes, riots, civil commotion,
governmental 

 

9

 

intervention,
acts of god or any other contingency such as adjustment of insurance claims,
beyond LESSOR’S control, may occur. In either event, LESSEE shall remove all
rubbish, debris, merchandise, furniture, equipment and other of its personal
property, within fifteen (15) days after the request of LESSOR. If the Premises
shall be but slightly injured by fire or other casualty, so as not to render
the same untenantable and unfit for occupancy, then LESSOR shall repair the
same with all reasonable promptitude, and in that case the rent shall not
abate. Notwithstanding anything to the contrary herein, in the event the holder
of any indebtedness secured by a mortgage or deed of trust covering the
Premises requires that the insurance proceeds be applied to such indebtedness,
then LESSOR shall have the right to terminate this Lease by delivering written
notice of termination to LESSEE, whereupon all rights and obligations hereunder
shall cease and terminate.

 

16.           PERSONAL PROPERTY:  LESSOR shall not be liable for any loss or
damage to any merchandise or personal property in or about the Premises,
regardless of the cause of such loss or damage. LESSEE shall have the sole
obligation at its own expense to obtain insurance coverage for any personal
property or belongings of LESSEE and its agents and employees on the Premises
and the Building.

 

17.           ALTERATIONS AND FIXTURES:  LESSEE shall not make any alterations,
additions or changes to the integrity or structural design of the improvements
and LESSOR assumes no liability should such improvements fail and cause damage
or bodily injury due to the inadequacy of design. All alterations, additions,
improvements and partitions erected by LESSEE shall become a part of the
Premises; provided, however, that at LESSOR’S option anytime prior to the
expiration of the Term, LESSOR may require LESSEE to restore the Premises to
their original condition at the end of the Term or other termination of this
Lease, including without limitation by removing warehouse racking and fastening
bolts and by repairing damage therefrom. If after LESSOR’S request LESSEE fails
to remove such installations, alterations, additions, improvements or
partitions, LESSOR may perform such removal and make repairs to the Premises as
are required by such removal, at LESSEE’S sole cost and expense. Any increase
in real estate taxes, both general and special, and insurance resulting from
such improvements shall be the sole responsibility of LESSEE. LESSEE may,
without the consent of LESSOR (except in the event holes are to be drilled into
floors or other alterations made to the Premises, all of which shall require
LESSOR’S consent), but at its own cost and expense and in a good workmanlike
manner erect such shelves, bins, machinery and trade fixtures as it may deem
advisable, without altering the basic character of the building or improvements
and without overloading or damaging the roof, walls, floors or other
improvements, and in each case complying with all applicable governmental laws,
ordinances, regulations and other requirements. Only pneumatic or non-metallic
(i.e. rubber) wheeled equipment may be used on the floors of the Premises.  LESSEE shall remove from the Premises all
personal property, i.e. machinery, equipment and business and trade fixtures at
the termination of this Lease, and LESSEE shall repair any damage occasioned by
the installation and/or removal of such personal property. If LESSEE shall
obtain written consent of LESSOR to leave any machinery or like equipment in
the Premises, then the full title to such machinery and equipment shall
thereupon pass to LESSOR. Subject to all of the foregoing provisions of this Section 17,
LESSOR agrees that the personalty shall remain the property of LESSEE, and
shall not be deemed the property of LESSOR or part of the realty no matter how
affixed to the Premises. LESSEE may remove such property at any time during the
Term of this Lease, provided that LESSEE is not in default under this Lease and
further provided, however, that

 

10

 

LESSEE repairs
any damage to the Premises occasioned by such removal.

 

18.           UTILITIES AND SERVICES:  LESSEE shall contract in its own name, and
pay for all charges for water, sewer charges, sprinkler line charges, gas, heat
electricity, fuel, telephone, alarm systems, and other utilities (including
utility taxes and/or surcharges) used in or serving the Premises during the
Term. LESSEE’S use of such utilities in the Premises shall not, at any time,
exceed the capacity of any of the lines or equipment in or otherwise serving
the Building.

 

19.           PUBLIC REQUIREMENTS:  LESSEE shall comply with all laws, orders,
ordinances and other public requirements now or hereafter affecting the
Premises or the use thereof (including without limitation the Americans With
Disabilities Act), and save LESSOR harmless from expense or damage resulting
from failure to do so. The building and fixtures will comply with Americans
with Disabilities Act at the time of occupancy. Any future modifications
required shall be LESSEE’S responsibility.

 

20.           MULTIPLE TENANCY BUILDING:  The Premises are part of multiple buildings,
and it is understood and agreed that LESSOR may elect to perform certain
maintenance obligations of the LESSEE pertaining to the Common Area of the two
Buildings. Said Common Areas shall include sidewalks, driveways, parking areas,
green areas and all other ancillary accessory areas serving the Building.
Charges for which the LESSOR shall receive reimbursement as additional rent
from LESSEE shall include labor and supplies for the following (by way of
illustration and not limitation): snow removal, trash removal, exterior
painting, exterior cleaning, repairing, pavement striping, lighting, utilities,
sprinkler line inspection, operation and repair charges, lines, mowing,
spraying, trimming, removal and/or replacement of plantings, maintenance repair
or replacement of sprinkler systems and reasonable management (not to exceed
15% of all Common Area charges payable by LESSEE) and professional fees. If
LESSEE uses any such services for other than normal use, LESSOR may equitably adjust
such charges.

 

For the
purposes of prorating real estate taxes (should the Premises not have a
separate tax parcel number), common area maintenance charges and insurance
premiums, LESSEE’S proportionate share shall be 50%. Should the square footage
of the Buildings be changed (whether by alterations or expansion of any
building, or the construction of new buildings), LESSOR reserves the right to
reapportion LESSEE’S pro rata percentage of common area maintenance charges in
relation to the adjusted total rentable square footage within the Buildings.

 

Such
reimbursement shall be made by LESSEE to LESSOR as additional rent within
twenty (20) days from the date of LESSOR’S notice of the amount so due
hereunder. In addition hereto, on or after January 1 of any calendar year
subsequent to the commencement date of the lease Term, LESSOR may elect to
notify LESSEE of LESSOR’S estimate of common area maintenance charges, increase
in taxes, and increase in insurance, which estimate shall be based on the
actual amounts so billed to the LESSEE for the previous year. If LESSOR so
notifies LESSEE, LESSEE shall be required on the first day of each calendar
month after receipt of such notice 1/12 of the amount of such estimate;
provided, however, that within sixty (60) days after the end of each calendar
year LESSOR shall determine the actual amounts 

 

11

 

expended
for common area maintenance, insurance and taxes for such calendar year (and
LESSEE’S proportionate share thereof) and furnish a copy of such computations
in writing to LESSEE. If the monthly payments made by LESSEE in such calendar
year exceed LESSEE’S proportionate share of actual costs, LESSOR shall rebate
such excess to the LESSEE; if LESSEE’S pro rata portion of such actual costs
exceeds the monthly payments made in such calendar year by LESSEE, then LESSEE
shall pay the difference to LESSOR as additional rent within twenty (20) days
from the date of LESSOR’S notice of the amount so due hereunder. LESSEE’S obligation
to pay its pro rata share of such actual amounts above those estimated shall
survive the expiration or termination of this Lease, and LESSOR’S obligation to
refund to LESSEE any overpayment of common area charges shall survive the
expiration or termination or this Lease.

 

LESSEE agrees
to conduct its business in a manner that will not be objectionable to tenants
in other Buildings of which the Premises are a part including noise, vibration,
odor, or fumes. In the event LESSOR receives complaints from other tenants or
determines, in its sole reasonable judgment that LESSEE is conducting its
operations in a manner so as to be objectionable to other tenants, LESSEE
agrees, upon notice from LESSOR thereof, to promptly modify the conduct of its
operations to eliminate such objectionable operations. Furthermore, LESSOR
shall have the right to adopt rules and regulations from time to time, and
LESSEE hereby agrees to fully comply with all such rules and regulations.
It is herewith understood by LESSEE that it shall have the non-exclusive use of
the parking lot and driveways serving the Building and as otherwise described
in the reciprocal easement and parking agreement attached as Exhibit C.
LESSOR shall grant LESSEE the exclusive use of not less than Forty-four (44)
parking spaces as depicted on Exhibit A attached hereto and incorporated
herein by reference. LESSOR shall obtain the right of LESSEE to use the six (6) spaces
shown on Exhibit A and located on Building A
property for the term of this Lease including any exercised option period under
the Lease by obtaining the Building A owners execution of Exhibit D
attached. If requested following LESSEE’S occupancy, LESSOR will re-stripe the
parking lot to provide LESSEE an additional three (3) parking spaces.

 

21. EMINENT
DOMAIN:  If the Building, the Premises or
any substantial part of either shall be taken by any competent authority under
the power of eminent domain or be acquired for any public or quasi-public use
or purpose or by purchase in lieu thereof, the Term shall cease and terminate
upon the date when the possession of the Premises or the part thereof so taken
shall be required for such use or purpose and without apportionment of the
award, and LESSEE shall have no claim against LESSOR for the value of any
unexpired Term of this Lease. If any condemnation proceeding shall be
instituted in which it is sought to take or damage any part of LESSOR’S
building or the land under it or if the grade of any street or alley adjacent
to the building is changed by any competent authority and such change of grade
makes it necessary or desirable to remodel the building to conform to the
changed grade, LESSOR shall have the right to cancel this Lease after having
given written notice of cancellation to LESSEE not less than ninety (90) days
prior to the date of cancellation designated in the notice. In either of said
events, rent at the then current rate shall be apportioned as of the date of
the termination. No money or other consideration shall be payable by LESSOR to
LESSEE for the right of cancellation and LESSEE shall have no right to share in
the condemnation award or in any judgment for damages caused by the taking or
the change of grade. Nothing in this Section shall preclude a separate
award being made to LESSEE for loss of its business, the loss of the value or
its leasehold estate, including, but not limited to the unamortized balance of
any tenant improvements 

 

12

 

constructed
upon the Premises or depreciation to and cost of removal of equipment or
fixtures; provided, however, that no award to LESSEE shall diminish any award
made by the taking authority to LESSOR.

 

22.           WAIVER OF SUBROGATION:  As part of the consideration for this Lease,
each of the parties hereto does hereby release the other party hereto from all
liability for damage due to any act or neglect of the other party (except as
hereinafter provided) occasioned to property owned by said parties which is or
might be incident to or the result of a fire or any other casualty against loss
for which either of the parties is now carrying or hereafter may carry
insurance and each party hereby waives subrogation against the other in
connection therewith; provided, however, that the releases and waivers of
subrogation herein contained shall not apply to any loss or damage occasioned
by the willful or wanton acts of either of the parties hereto, and the parties
hereto further covenant that any insurance that they obtain on their respective
properties shall contain an appropriate provision whereby the insurance company
or companies consent to the mutual release of liability contained in this
Section.

 

23.           DEFAULT AND REMEDIES: In the event: (a) LESSEE
fails to comply with any term, provision, condition or covenant of this Lease; (b) LESSEE
deserts or abandons the Premises (vacating, which shall mean ceasing operations
in the Premises while continuing to maintain the same and while continuing to
pay all rent and additional rent due hereunder, shall not be deemed to be a default);
(c) any petition is filed by or against LESSEE under any section or
chapter of the Federal Bankruptcy Act as amended, or under any similar law or
statute of the United States or any state thereof; (d) LESSEE becomes
insolvent or makes a transfer in fraud of creditors; (e) LESSEE makes an
assignment for benefit of creditors; (f) LESSEE shall commit waste in or
about the .Premises; or (g) a receiver is appointed for LESSEE or any of
the assets of LESSEE (and such receiver is not discharged within sixty [60]
days of appointment), then in any of such event, LESSEE shall be in default
and, LESSOR shall have the option to do any one or more of the following, in
addition to and not in limitation of any other remedy permitted by law: LESSOR
may enter upon the Premises or any part thereof either with or without process
of law, and to expel, remove and put out LESSEE or any other persons who might
be thereon, together with all personal property found therein; and, LESSOR may
terminate this Lease or it may from time to time, without terminating this
Lease, rent the Premises or any part thereof for such term or terms (which may
be for a term extending beyond the Term of this Lease) and at such rental or
rentals and upon such other terms and conditions as LESSOR in its sole
discretion may deem advisable, with the right to repair, renovate, remodel,
redecorate, alter and change said Premises. At the option of LESSOR, rents
received by LESSOR from such reletting shall be applied first to the payment of
any costs and expenses of such reletting, including but not limited to attorney’s
fees, advertising fees and brokerage fees, and second, to the payment of any
repairs, renovation, remodeling, redecorations, alterations and changes in the
Premises third, to the payment of rent and additional rent and interest thereon
due and payable hereunder, and, if after applying said rentals there is any
deficiency in the rent and additional rent and interest to be paid by LESSEE
under this Lease, LESSEE shall pay any such deficiency to LESSOR and such
deficiency shall be calculated and collected by LESSOR monthly. No such
re-entry or taking possession of said Premises shall be construed as an
election on LESSOR’S part to terminate this Lease unless a written notice of
such intention be given to LESSEE. Notwithstanding any
such reletting without termination, LESSOR may at any time thereafter elect to
terminate this Lease, for such previous breach and default. Should LESSOR at
any time terminate this Lease by reason of any default, in addition to any
other remedy it may have, it may recover from LESSEE a sum equal to the entire 

 

13

 

rent
payable to the end of the Term. LESSOR shall also have the right and remedy to
seek redress in the courts at any time to correct or remedy any default of
LESSEE by injunction or otherwise, without such resulting or being deemed a
termination of this Lease, and LESSOR, whether this Lease has been or is
terminated or not shall have the absolute right by court action or otherwise to
collect any and all amounts of unpaid rent unpaid additional rent and interest
thereon or any other sums due from LESSEE to LESSOR under this Lease which were
or are unpaid at the date of termination. In addition, LESSOR shall have the
right to cure any default of LESSEE by expending money, contracting for
repairs, purchasing insurance or by any other action. If LESSOR takes such
actions, LESSEE will immediately upon demand reimburse LESSOR for all of LESSOR’S
expenses, which shall bear interest at the rate of 12 percent per annum form
the dates incurred until the dates paid. Any breach of any covenants of this
Lease shall be material breaches entitling LESSOR to its remedies, regardless
of the extent of actual damages.

 

24.           LATE CHARGES:  LESSEE acknowledges that LESSOR shall be
required to expend certain administrative efforts in the event LESSEE shall
fail to timely remit payment due under the terms of this Lease. Accordingly,
LESSEE agrees to pay LESSOR a late charge five percent (5.0%) or ten percent
(10%), according to Section 2.3 hereof, (i.e. rent, additional rent or
reimbursement due hereunder) which is not received by LESSOR within ten (10) days
of the due date hereunder. Failure by LESSEE to pay said late charge shall
constitute a default of this Lease by LESSEE.

 

25.          WAIVER:  The rights and remedies of LESSOR under this
Lease, as well as those provided or accorded by law, shall be cumulative, and
none shall be exclusive of any other rights or remedies hereunder or allowed by
law. A waiver by LESSOR of any breach or breaches, default or defaults of
LESSEE hereunder shall not be deemed or construed to be a continuing waiver of
such breach or default nor as a waiver of or permission, expressed or implied,
for any subsequent breach or default and it is agreed that the acceptance by
LESSOR of any installment of rent subsequent to the date the same should have
been paid hereunder, shall in no manner alter or affect the covenant and
obligation of LESSEE to pay subsequent installments of rent promptly upon the
due date thereof. No receipt of money by LESSOR after the termination in any
way of this Lease shall reinstate, continue or extend the Term. LESSEE agrees
not to make any counterclaim of any nature in any proceedings in connection with
this Lease. LESSEE waives any rights it may have to redeem the Premises from
any reentry and possession by LESSOR.

 

26.           NOTICES:  All rent and other payments required to be
made by LESSEE shall be payable to LESSOR at the address set forth on the first
page of this Lease.  Any notice or
document required or permitted to be delivered under this Lease shall be deemed
to be delivered (whether or not actually received) when deposited in the United
States Mail, postage prepaid, certified mail, return receipt requested,
addressed to the parties at their respective addresses (LESSEE’S address shall
be the address of the Premises).

 

27.           SUBORDINATION:  This Lease shall be subject and subordinate
to any mortgage now or at any time hereafter constituting a lien or charge upon
the Premises, the Buildings or the improvements situated thereon.  LESSEE shall at any time hereafter on demand
execute any instruments, releases or other documents which may be required by
any such mortgagee for the purpose of subjecting and subordinating this Lease
to the lien of any such mortgage. LESSEE hereby irrevocably constitutes and
appoints LESSOR as LESSEE’S special 

 

14

 

attorney-in-fact
to execute and deliver any such documents or instruments.  LESSEE shall and hereby does attorn to any
purchaser of the Premises or the Building in any foreclosure proceedings.

 

28.           SUCCESSORS:  The provisions, covenants and conditions of
this Lease shall bind and inure to the benefit of the legal representatives,
heirs, successors and assigns of each of the parties hereto, except that no
assignment or subletting by LESSEE without the written consent of LESSOR shall
vest any right in the assignee or sublessee of LESSEE.

 

29.           QUIET POSSESSION:  LESSOR agrees that so long as LESSEE fully
complies with all of the terms, covenants and conditions herein contained on
LESSEE’S part to be kept and performed, LESSEE shall and may peaceably and
quietly have, hold and enjoy the Premises during the Term, it being expressly
understood and agreed that such covenant of quiet enjoyment shall be binding
upon LESSOR, its heirs, successors or assigns. LESSOR further covenants and
represents that LESSOR has full right title, power and authority to make,
execute and deliver this Lease.

 

30.           BANKRUPTCY:  The parties agree that this Lease has been
entered into partly because of LESSOR’S judgment that LESSEE will be
particularly able to perform the Lease covenants. LESSEE has substantial duties
of performance under this Lease, apart from its mere financial obligations.
This Lease is a personal contract between the parties which cannot be assumed
by any trustee or other party in bankruptcy. In the event any proceedings in
bankruptcy are brought against LESSEE or affect LESSEE, and should an
assumption of this Lease be attempted by the trustee or other party in
violation of the above agreement, LESSOR will not have adequate assurance of
performance, within the meaning of Section 365 of the Bankruptcy Code of
1978, unless the trustee or other party can demonstrate that itself or a
substitute LESSEE will have the particular capacity to fulfill the nonmonetary
covenants of this Lease, LESSOR will not have adequate assurance of performance
unless and until (i) LESSOR is allowed access to adequate financial and
other information about the proposed LESSEE, including without limitation
references from prior lessors, to satisfy itself that the trustee, other party
or proposed LESSEE is fully able to assume the financial and personal covenants
of LESSEE in this Lease, in full accordance with its terms, and (ii) sufficient
bonds or letters of credit are posted by the trustee, other party or proposed
LESSEE to guarantee performance of the Lease obligations. The parties further
agree that the definition of the term “adequate assurance” as set forth in Section 365(b)(3) of the Bankruptcy Code of 1978 shall apply to any
determination of adequate assurance in connection with this Lease.  In the event any proceedings in bankruptcy
are brought against LESSEE or affect LESSEE, the trustee or other party shall
not be permitted to use, sell or lease any of the Premises, whether or not in
the ordinary course of business, without providing adequate protection to
LESSOR. The parties agree that the language in the Section 361 of the
Bankruptcy Code of 1978 shall be the exclusive definition of the term “adequate
protection” in connection with any use, sale or lease of the Premises. The cash
payment referred to in that section shall mean the full payments required
under this Lease, plus payment representing the value of LESSOR’S lost ability
to use or lease the Premises; and the term “indubitable equivalent” as used in
that section shall mean protection afforded by either grants of
administrative expense priority, grants to LESSOR of ownership interests in a
continuing business surviving the bankruptcy, or grants to LESSOR of protected
securities issued by a continuing business surviving the bankruptcy, which
completely compensate LESSOR for the loss of the present value (computed at the
then market rate of interest for 

 

15

 

commercial
loans) of LESSOR’S lost ability to use or lease the Premises. The parties agree
that because of the extreme financial importance to LESSOR of this transaction,
LESSOR will be irreparably harmed by any stay of its collection efforts or the
exercise of its remedies under this Lease. LESSOR may demand reasonable
assurances of continued performance under this Lease in connection with any
proceeding pertaining to bankruptcy, insolvency or reorganization of LESSEE or
its affiliates or principals.

 

31.           SURRENDER:  At the expiration of this Lease or any
extension thereof, LESSEE agrees, without demand or notice by LESSOR, to return
the Premises to LESSOR in broom-clean condition with restrooms mopped, all
trash removed inside and outside, all painted or tape lines removed from the
concrete floors. All plumbing, plumbing fixtures, electrical systems, heating,
ventilation and air-conditioning systems, overhead unit heaters, dock revelers,
overhead doors and or tracks shall be in good working order and repair,
reasonable wear and tear excepted. All light fixtures shall be in working order
with working bulbs installed. All dock bumpers and dock shelters shall be
present and in good condition. All storage racks and connecting bolts shall be
removed and holes resulting therefrom shall be filled and leveled to LESSOR’S
satisfaction. LESSEE agrees to repair all damage to the Premises which may be
required as a result of LESSEE’S obligations under the terms and conditions of Section 9
herein, including those repairs which may be necessitated by the removal of
signs, personal property, etc.

 

This provision
is further subject to the terms and conditions recited in Section 17.
LESSEE shall remain liable for rent and additional rent due hereunder until the
same are paid in full and all keys to the Premises are returned to and accepted
by LESSOR.

 

32.           HOLDING OVER; In the event of holding
over by LESSEE after the expiration of the Term or termination of this Lease,
the holdover shall be as a tenant at will and all of the terms and provisions
of this Lease shall be applicable during that period, except that LESSEE shall
pay LESSOR as rental for the period of such holdover an amount equal to one and
one-half the rent which would have been payable by LESSEE had the holdover
period been a part of the Term created by of this Lease. LESSEE agrees to vacate
and deliver the Premises to LESSOR upon LESSEE’S receipt of notice from LESSOR
to vacate. The rental payable during the holdover period shall be payable to
LESSOR on demand. LESSEE’S obligation to pay LESSOR any reimbursements due
hereunder and its pro rata share of any additional rents due hereunder shall
survive the expiration of the Term or any holdover thereof. No holding over by
LESSEE, whether with or without consent of LESSOR, shall operate to extend this
Lease except as otherwise expressly provided, and LESSEE shall indemnify LESSOR
against any and all liability to other parties claiming rights in or to the
Premises during the period of LESSEE’S holdover tenancy.

 

33.           LIENS:  LESSEE shall not encumber or permit the
encumbrance of the Premises, this leasehold estate or the Building by any
mortgage, deed of trust, assignment, security interest, lien or other charge
without the prior written consent of LESSOR. If any encumbrance to which LESSOR
has not consented is created or filed of record against the Premises, this
leasehold estate, or the Building, LESSEE shall discharge or cause the
discharge of the same within ten days after its creation. LESSEE shall defend
and indemnify LESSOR from all liability, damages and expenses incurred by
LESSOR which result from any such encumbrance. LESSEE shall not permit any
mechanic’s or materialmen’s liens arising from any work or materials requested
or suffered by LESSEE and affecting the Premises to be filed prior to, during
or after the expiration 

 

16

 

of
the Term, and if any such lien if filed, LESSEE agrees to remove or bond
against such lien within thirty (30) days thereafter. If LESSEE shall fail to
clear or bond against any such lien within such thirty (30) day period, LESSOR
shall have the right to remove such lien (by bonding or otherwise) at LESSEE’S
sole cost and expense, and LESSEE shall reimburse LESSOR for such removal
(together with LESSOR’S expense therefor) upon demand. LESSEE’S failure to
clear any such liens shall be a default hereunder.

 

34.           FORCE MAJEURE:  LESSOR shall not be required to perform any
covenant or obligation in this Lease, or be liable in damages to LESSEE, so
long as the performance or nonperformance of the covenant or obligation is
delayed, caused by or prevented by an act of God or force majeure.

 

35.           ATTORNEY’S FEES:  In the event that either party shall engage
an attorney to enforce its rights hereunder, the party prevailing in litigation
shall be entitled to receive from the non-prevailing party the prevailing party’s
reasonable attorneys’ fees for such enforcement.

 

36.           LESSOR’S LIABILITY:  Recourse by LESSEE for any claim against
LESSOR shall at all times be limited to LESSOR’S interest in the Premises, and
LESSEE hereby waives any right to assert any claims against any other interest
of LESSOR or of LESSOR’S members, partners, principals or stockholders. The
term “LESSOR” as used in this Lease, so far as agreements on the part of LESSOR
to be performed are concerned, shall be limited to mean the owner of the
landlord’s interest in the Premises at the time in question; in the event of
any transfer of such interest (except for transfers as security), the
particular lessor named herein shall be automatically freed and relieved from
and after the date of such transfer of any and all liability for acts then to
be performed by LESSOR hereunder.

 

37.           INTERPRETATION; CHOICE OF FORUM;
CONSENT TO JURISDICTION:  The parties
hereto agree that it is their intention hereby to create only the relationship
of the LESSOR and LESSEE, and no provision hereof, nor act of either party
hereunder shall ever be construed as creating the relationship of principal and
agent or a partnership, or a joint venture or any enterprise between the
parties hereto. Any suit to enforce any rights hereunder, or for the
interpretation of any of the provisions of this Lease, or for damages or any
other relief arising from or in connection with this Lease, shall be filed in
and only in the state or federal courts located in the county (or district and
division, in the instance of federal courts) in which the Premises are located,
and the parties hereto irrevocably consent to the personal jurisdiction of such
courts. This Lease shall be governed by and construed under the local law of
the state in which the Premises are located.

 

38.           LEASE STATUS:  Upon request of LESSOR, LESSEE shall execute,
acknowledge and deliver an estoppel certificate prepared by LESSOR stating, if
the same be true, that this Lease is a true and exact copy of the lease between
the parties hereto and that there are no amendments hereof (or stating what the
amendments are) that the same is then in full force and effect and that to the
best of LESSEE’S knowledge, there are no offsets, defense or counterclaims with
respect to the payment of rent reserved hereunder or in the performance of the
other terms, covenants and conditions hereof on the part of LESSEE to be
performed, and that as of such date, no default has been declared hereunder by
either party hereto, and that 

 

17

 

LESSEE, at the
time, has no knowledge of any facts or circumstances which it might reasonably
believe would give rise to a default by either party. Notwithstanding anything
to the contrary contained herein, without relieving LESSEE of its obligation
under this Section, LESSEE’S failure to execute, acknowledge and deliver to
LESSOR such estoppel certificate within ten (10) days after written demand
shall constitute the acknowledgment of LESSEE that all matters set forth in
such instrument are true and correct. LESSEE shall deliver to LESSOR, within
ten (10) days after the Commencement date, an estoppel certificate
confirming the Commencement Date and setting forth the matters prescribed in
this Section 38. Upon LESSEE’S request LESSOR shall deliver to LESSEE
within ten (10) days of LESSEE’S request therefor an estoppel certificate
confirming the instruments comprising this Lease, the term and amount of rent
payable hereunder and whether or not LESSOR claims any defaults hereunder.

 

39.           RECORDING:  LESSEE shall not record this Lease but may
record a memorandum thereof, subject to the review and reasonable approval of
any proposed memorandum by LESSOR..

 

40.           CAPTIONS:  Captions throughout this instrument are for
convenience and reference only, and the words contained herein shall no way be
held to explain, modify, amplify or aid in the interpretation, construction or
meaning of the provisions of this Lease.

 

41.           SEVERABILITY:  If any provision of this Lease or any term,
paragraph, sentence, clause phrase or word appearing herein shall be judicially
or administratively held invalid or unenforceable for any reason, such holding
shall not be deemed to affect, alter, modify or impair in any manner any other
provision, term paragraph, sentence, clause, phrase or word appearing herein.

 

42.           NO OFFER:  Submission of this instrument for examination
or signature by LESSEE does not constitute a reservation or offer of or option
for lease, and it is not effective as a lease or
otherwise until execution and delivery by LESSOR and LESSEE.

 

43.           ENTIRE AGREEMENT AND LIMITATION OF
WARRANTIES:  This Lease is the complete
agreement between LESSOR and LESSEE concerning the Premises. There are no oral
agreements, understandings, promises or representations between LESSOR and
LESSEE affecting this Lease. All prior negotiations and
understandings, if any, between the parties hereto with respect to the Premises
shall be of no force or effect and shall not be used to interpret this Lease.
LESSOR and LESSEE expressly agree that there are and shall be no implied
warranties of merchantability, habitability, fitness for a particular purpose
or of any other kind arising out of this Lease and there are no warranties
which extend beyond those expressly set forth in this Lease. It is likewise
agreed that this Lease may not be altered, waived, amended or extended except
by an instrument in writing signed and dated by both LESSOR and LESSEE.

 

44.           BROKERS:  LESSEE and LESSOR warrant and represent to
the other that neither of them has had any contact or agreement with any real
estate broker, agent or leasing agent other than LESSEE’S agent who is Fishman &
Company and LESSOR’S broker who is William E. White of White &
Associates. LESSEE and LESSOR shall defend, indemnify and hold the other
harmless, from and against any and all costs, expenses, losses, liabilities and
claims which may arise from or be asserted by any other brokers or agents in
connection with this Lease or the negotiation thereof. Upon LESSEE’S closing of
its securities offering and/or payment to

 

18

 

LESSOR of all
Tenant Improvement Costs in excess of $275,000.00, LESSOR shall pay a
commission equal to Six Percent (6%) of the Basic Rental for the initial term
to be split one-half each by Fishman & Company and White &
Associates.

 

45.           ADDITIONAL IMPROVEMENTS:  None

 

46.           ENVIRONMENTAL COVENANTS:  From the date hereof LESSEE and LESSEE’s
agents, contractors and employees shall not engage in any of the following
prohibited activities, and LESSEE shall use its best and diligent efforts to
see that LESSEE’S invitees and tenants, and such tenants’ employees, agents,
and invitees, shall not:  (a) cause
or permit any release, discharge or threat of release of Hazardous Material on
or from the Premises or any portions of the property of which the Premises are
a part; or (b) cause or permit any manufacturing, transporting, spilling,
leaking, or dumping of Hazardous Material in or on any portion of the Premises,
except in the ordinary course of LESSEE’S business on the Premises and in a
manner not to allow any contamination of the Premises and in accordance with
all federal, state and local rules, regulations, laws and ordinances relating
to Hazardous Material or other environmental matters; or (c) cause or
permit any holding, handling or retaining of Hazardous Material in or on any
portion of the Premises, except in the ordinary course of LESSEE’S business on
the Premises and in a manner not to allow any contamination of the Premises and
in accordance with all federal, state and local rules, regulations, laws and
ordinances relating to Hazardous Material or other environmental matters; or (d) otherwise
place, keep, or maintain, or allow to be placed, kept, or maintained, any
Hazardous Material on any portion of the Premises, except in the ordinary
course of LESSEE’S business on the Premises and in a manner not to allow any
contamination of the Premises and in accordance with all federal, state and
local rules, regulations, laws and ordinances relating to Hazardous Material or
other environmental matters.

 

LESSEE and its
agents, contractors and employees shall comply, and cause the Premises to
comply, with all laws, ordinances, rules, and regulations of all authorities
having jurisdiction over the LESSEE, the Premises, the Building or the use of
the Premises and pertaining to any Hazardous Material. If Hazardous Material is
discovered on the Premises, LESSEE shall pay immediately when due the cost of
removal of any Hazardous Material from the Premises in compliance with all
governmental requirements, and keep the entire Premises free of any lien
imposed pursuant to any laws, regulations, or orders of any governmental or
regulatory authority having to do with the removal of Hazardous Material.
Within thirty (30) days after demand by LESSOR, LESSEE shall obtain and deliver
to LESSOR a bond, letter of credit, or similar financial assurance for the
benefit of LESSOR, evidencing, to LESSOR’S satisfaction in its sole discretion,
that the necessary funds are available to pay the cost of removing, treating,
and disposing of all Hazardous Material on the Premises or any contamination
caused thereby, and discharging any assessments or liens which may be
established on the Premises as a result thereof.

 

LESSOR shall
have the right, but not the obligation, to cause all Hazardous Material and
Hazardous Material contamination found on or in the Premises to be removed
therefrom. In such event, the cost of the removal, including all expenses,
charges, and fees incurred by LESSEE in connection therewith, including
attorneys’, engineers’, and consultants’ fees, shall be payable by LESSEE on
demand, and shall bear interest at twelve (12%) per annum from the date
advanced until paid. LESSEE shall give to LESSOR and its agents and employees
access to 

 

19

 

the Premises
for such purposes and LESSEE hereby grants to LESSOR, its agents, contractors
authorized representatives and employees, full right and authority to remove
any such Hazardous Material and Hazardous Material contamination from the
Premises.

 

If at any time
LESSOR has reasonable cause to believe that an environmental condition in
violation of this Lease exists, LESSOR may notify LESSEE in writing that it
desires a site assessment or environmental audit (“Audit”) of the Premises to
be made, and at any time thereafter cause such Audit to be made of the Premises
at LESSEE’S sole expense. Such Audit(s) shall be performed in a manner
reasonably calculated to confirm and verify compliance with the provisions of
this Section. LESSEE covenants to reasonably cooperate with the persons
conducting the Audit to allow entry and reasonable access to all portions of
the Premises for the purpose of the Audit, to supply the auditors with all
available historical and operational information regarding the Premises (of
which LESSEE has possession) as may reasonably be requested by the auditors,
and to make available for meetings with the auditors appropriate personnel
having knowledge of matters relevant to the Audit. LESSEE covenants to comply,
at its sole cost and expense, with all recommendations contained in the Audit,
including any recommendation for additional testing and studies to detect the
presence of Hazardous Material, or to otherwise confirm and verify LESSEE’S
compliance with the provisions of this Section, to the extent required by
LESSOR.

 

LESSEE hereby
agrees to defend, indemnify and hold LESSOR (including the respective
successors, assigns, employees, agents, officers and directors of LESSOR) harmless
from, any and all actions, loss, liability, damage, cost or expense occasioned
by, resulting from, or consequent to any Hazardous Material or Hazardous
Material contamination on the Premises; any releases or discharges of Hazardous
Material from the Premises; any manufacturing, maintaining, holding, handling,
transporting, spilling, leaking or dumping of Hazardous Material on or at the
Premises; any other violation of Hazardous Material laws, ordinances, rules and
regulations; any claim or assertion that any Hazardous Material or Hazardous
Material contamination is located on the Premises; any claim that any such
activities or violations have been, or are being, engaged in on the Premises;
or any other failure or alleged failure of LESSEE, LESSEE’S agents,
contractors, authorized representatives or employees, the Premises, to comply
with the provisions of this Agreement. This indemnity shall be enforceable
notwithstanding any attempts by LESSEE to exercise due diligence in
ascertaining whether or not any of the events outlined above affect the
Premises. The loss, liability, damage, cost, or expense which is covered by
this indemnity shall include, without limitation, all foreseeable consequential
damages; the costs of any required or necessary repair, cleanup or
detoxification of the Premises, including the soil and ground water thereof,
and the preparation and implementation of any closure, remedial or other
required plans; damage to any natural resources; and all reasonable costs and
expenses incurred by LESSOR in connection with the above, including but not
limited to attorneys’ and consultants’ fees.

 

As used in
this Lease, the term “Hazardous Material” means any radioactive,
hazardous, or toxic substance, material, waste, chemical, or similar item, the
presence of which on the Premises, or the discharge, emission, release, or
threat of release of which on or from the Premises, is prohibited or otherwise
regulated by any laws, ordinances, statutes, codes, rules, regulations, orders,
and decrees of the United States, the State of Kansas, and all local or
governmental or regulatory authorities exercising jurisdiction over LESSEE or
the Premises, or which require special handling in collection, storage,
treatment, or disposal by any such laws or

 

20

 

requirements.
The term Hazardous Material includes, but is not limited to, any material,
substance, waste or similar item which is now or hereafter defined as a
hazardous material or substance under the laws of the State of Kansas, the
Federal Water Pollution Control Act (33 U.S.C. Section 1317), the Federal
Resource Conservation and Recovery Act (RCRA) (42 U.S.C. Section 6901, et
seq.). the Federal Comprehensive Environmental Response, Compensation and
Liability Act (CERCLA) and (SARA) (42 U.S.C. Section 9601. et seq.),
any rules or regulations adopted by any administrative agency, including,
but not limited to, the Environmental Protection Agency, the Occupational
Safety and Health Administration, and any similar state or local agency having
jurisdiction over the Premises, whether or not such rules and regulations
have the force of law. The term “Hazardous Material” shall also include any
items subject to regulation under the Toxic Substances Control Act (TSCA) (15 U.S.C.,
Section 2601 et seq.).

 

47.           LESSEE’S OPTION TO PURCHASE

 

Option to Purchase.
Provided (i) there exists no default of Event of Default hereunder, (ii) subject
to acceptance of the purchase price, LESSEE has given LESSOR written -notice of
its exercise of such option on or before 180 days prior to the end 6f the
initial five (5) year lease term, (iii) pays LESSOR $25,000.00
non-refundable earnest money deposit (payable within ten (10) days
following the determination of the purchase price) which shall be credited
against the purchase price at closing, then LESSEE shall have the option to
purchase the Premises in their then as is condition during the final twenty
(20) days of the first extended term hereof at the absolute net price to LESSOR
as set forth below. Payment for such purchase must be made prior to expiration
of such option period and the payment therefore must be paid by deposit of
readily available funds with a national title insurance company doing business
in Lenexa, Kansas, prior to the expiration of such period with instructions to
deliver such net purchase price to LESSOR on delivery of LESSOR’S Special
Warranty Deed to such title company in recordable form conveying the Premises
to LESSEE free of all mortgage liens and any other easements or encumbrances
not on the property as of the date of this lease and which would materially
alter the marketability of title under customary Kansas real practice
standards.

 

Absolute Net Price. The absolute net
price payable LESSOR shall be: An amount equal to Two Million Seventy Thousand
Five Hundred Eighty-eight and no/100 Dollars ($2,070,588.00) multiplied by a
fraction, the numerator of which is the Consumer Price Index as of January 1,
2010, and the denominator of which is such Consumer Price Index as of January 1,
2005. The term Consumer Price Index shall mean the Midwest Region, all urban
index published by the Bureau of Labor Statistics (1982-1984 = 100).

 

Should LESSEE give notice of the intent to
exercise its’ purchase option as set forth above, the deadline for exercising
its’ first option to extend the Lease term under paragraph 2.2 shall be
extended until the date ten (10) days after LESSOR notifies LESSEE of the
purchase price computation.

 

48.           TENANTS AUTHORITY TO SIGN LEASE:  LESSEE shall provide LESSOR with a certified
copy of the resolution of its Board of Directors authorizing the execution of
this lease by those signing the lease on its behalf.

 

49.           SECURITY DEPOSIT:  Concurrently with its execution of this
Lease, LESSEE 

 

21

 

shall
deliver to LESSOR $60,000.00 as security for the performance by LESSEE of every
covenant and condition of this Lease (the “Security Deposit”). Said Security
Deposit may be co-mingled with other funds of LESSOR and shall bear no
interest. If LESSEE shall default with respect to any covenant or condition of
this Lease, including, but not limited to the payment of rent, LESSOR may apply
the whole or any part of such Security Deposit to the payment of any sum in
default or any sum which LESSOR may be required to spend by reason of LESSEE’S
default.  If any portion of the Security
Deposit is so applied, LESSEE, upon demand by LESSOR, will deposit cash with
LESSOR in an amount sufficient to restore the Security Deposit to its original
amount. Should LESSEE comply with all of the covenants and conditions of this
Lease, $45,000.00 shall be released to LESSEE upon completion of its secondary
offering of LESSEE’S securities and the payment of any tenant finish costs over
$275,000 as set forth in paragraph 3 and LESSOR shall reimburse LESSEE for
payments by LESSEE to Nolte & Associates under paragraph 3 hereof.

 

50. NET LEASE:
 Except as specifically set forth in
paragraph 11 hereof, the LESSOR and LESSEE agree that this Lease is an
absolutely “Net Lease”, which means that the LESSEE pays as additional rent,
without defense, offset or deduction, all expenses connected with the Leased
Premises, including but not limited to real and personal property taxes and
assessments, fire and extended coverage insurance premiums, liability and
damage insurance premiums, parking lot and common area maintenance expenses,
and all expenses of maintenance, replacement, repair and reconstruction on the
Leased Premises.

 

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

 

	
  LESSOR:

  	
  116 RENNER
  PARTNERS, L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James C. Ferguson

  	
   

  
	
   

  	
  James C.
  Ferguson, Trustee of the Ferguson Living Trust

  
	
   

  	
  Dated
  August 19, 1996, Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  J&J
  PROPERTIES, LLC,

  
	
   

  	
  a Kansas
  Limited Liability Company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James S. Ferguson

  	
   

  
	
   

  	
  James S.
  Ferguson, Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BEN-LEE,
  L.L.C.,

  
	
   

  	
  a Kansas
  Limited Liability Company

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Don Crabtree

  	
   

  
	
   

  	
  Don
  Crabtree, Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ William E. White, Jr.

  	
   

  
	
   

  	
  William E.
  White, Jr., Individually a Member

  
					

 

22

 

	
  LESSEE:

  	
  ICOP
  DIGITAL, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ David C.
  Owen

  	
   

  
	
   

  	
  Name:

  	
  DAVID C.
  OWEN

  
	
   

  	
   

  	
  President/CEO

  

 

23

 

RECIPROCAL EASEMENT
AGREEMENT

 

	
  STATE OF
  KANSAS

  	
  )

  	
   

  
	
   

  	
  )ss.

  	
   

  
	
  COUNTY OF
  JOHNSON

  	
  )

  	
   

  

 

This
Reciprocal Easement Agreement (“Agreement”) is made as of the 1 day of June,
2004, by and between J & J Properties, L.L.C., a Kansas limited
liability company (“Ferguson”) and 116 Renner Partners, L.L.C., a Kansas
limited liability company (“Renner”).

 

WHEREAS,
Ferguson is the owner in fee simple of certain real property located in the
City of Lenexa, County of Johnson, State of Kansas, which is more particularly
described on Exhibit A attached hereto and made a part hereof for all
purposes (the “Ferguson Property”); and

 

WHEREAS,
Ferguson has conveyed to Renner certain real property located adjacent to the
Ferguson Property, which property is more particularly described on Exhibit B
attached hereto and made apart hereof for all purposes (the “Renner Property”);
and

 

WHEREAS, in
consideration of the purchase of the Renner Property by Renner, Ferguson and
Renner each wish to grant to the other a non-exclusive easement for pedestrian
and vehicular access across, and over the Ferguson Property and the Renner
Property.

 

NOW,
THEREFORE, in consideration of the premises, the parties hereto agree as
follows:

 

1.             Grant of Easement. Ferguson
hereby grants and conveys to 16 Renner, its successors and assigns, an easement
and right-of-way on, across and over the Ferguson Property, and Renner hereby
grants and conveys to Ferguson, its successors and assigns, an easement and
right-of-way on, across and over the Ferguson Property (collectively, the “Easement”).

 

2.             Purpose of Easements.   The Easements shall be for the purposes of (a) granting
to Renner, Renner’s employees, representatives, customers, and invitees a
permanent non-exclusive easement and right of use of all access and entrance drives
of the Ferguson Property for the purpose of pedestrian and vehicular ingress
and egress, and (b) granting to Ferguson, Ferguson’s employees,
representatives, customers, tenants and invitees a permanent non-exclusive
easement and right of use of all access and entrance drives of the Renner
Property for the purpose of pedestrian and vehicular ingress and egress.  Ferguson agrees not to erect, construct, or
install any subsequent signage, buildings, or other improvements on the
Ferguson Property, or make any changes to the Ferguson Property which would
materially obstruct or diminish the access and proximity of the Renner Property
from nearby public thoroughfares, intersections, parking areas, and common
areas. Renner agrees not to erect, construct, or install any subsequent
signage, buildings, or other improvements on the Renner Property, or make any
changes to the Renner Property which would materially obstruct or diminish the
access and proximity of the Ferguson Property from nearby public thoroughfares,
intersections, parking areas and common areas. Each of Ferguson and Renner
consent to the proposed development of the Ferguson 

 

24

 

Property and
the Renner Property and agree that such proposed development does not violate
the provisions hereof regarding access and proximity.

 

3.             Each party shall be responsible for
operating, lighting, snow and its removal, and maintaining in good repair and
condition the parking areas, entrances, sidewalks, driveways and exits, and
utility lines, if any, located on their respective parcels.  In the event a party does not maintain its
parcel in good condition and repair throughout the term hereof, including the
obligation to keep its premises lighted and clear of snow and ice, (“Non-Maintaining
Party”), then the other party (“Maintaining Party”) shall give the
Non-Maintaining Party written notice of such failure.  If the Non- Maintaining Party fails to cure
or commence to cure such failure (if said failure will take more than fifteen
(15) days to cure) within fifteen (15) days of its receipt of notice of such
failure (except for removal of snow and ice for which such period shall be 24
hours), the Maintaining Party may correct such failure. The Non-Maintaining
Party shall pay to the Maintaining Party the costs of such maintenance within
thirty (30) days after receipt of an invoice for the same.  All self help rights hereunder shall be
exercised lien free and in a good and workmanlike condition.  The Maintaining Party, its employees,
contractors and agents shall have the right and easement to go upon the
Non-Maintaining Party’s parcel for the purpose of performing such cleaning,
snow and ice removal maintenance and repair, in addition to the foregoing, each
party shall be obligated to screen from public view all (rash and dumpster
facilities located on their respective parcel.

 

4.             Indemnity.

 

a.      Renner agrees that it shall defend,
indemnify and save Ferguson harmless from and against any liability to third
parties for loss of life, personal injury, property damage or otherwise which
arises in connection with Renner’s usage of the Ferguson Property, and all
costs and expenses, including attorneys’ fees, which Ferguson may incur in
connection with any such liabilities; provided, however, that the foregoing
shall not apply to any liabilities which are proximately caused by the
negligence or willful misconduct of Ferguson or its agents.  The foregoing indemnity and obligation of
Renner shall be binding upon Renner and its successors and assigns.

 

b.      Ferguson agrees that it shall defend,
indemnify and save Renner harmless from and against any liability to third
parties for loss of life, personal injury, property damage or otherwise which
arises in connection with Ferguson’s usage of the Renner Property, and all
costs and expenses, including attorneys’ fees, which Renner may incur in
connection with any such liabilities; provided, however, that the foregoing
shall not apply to any liabilities which are proximately caused by the
negligence or willful misconduct of Renner or its agents. The foregoing
indemnity and obligation of Ferguson shall be binding upon Ferguson and its
successors and assigns,

 

5.             Nature of Easement.   The burdens of the Easement shall run with
the Ferguson Property and the Renner Property and shall be binding upon
Ferguson, Renner and every successor owner of the Ferguson Property and the
Renner Property.  The easements shall
inure to the benefit of the Renner Property and the Ferguson Property.

 

25

 

6.             Successors and Assigns. This
Agreement shall be binding upon and inure to the benefit of the parties hereto,
and their respective successors and assigns.

 

7.             Counterparts.  This Agreement may be executed in multiple
counterpart copies, each of which will be considered an original and all of
which constitute one and the same instrument.

 

8.             Governing Law.   This Agreement and all the provisions hereof
shall be governed by and construed in accordance with the laws of the State of
Kansas.

 

IN WITNESS
WHEREOF, the parties hereto have executed this Easement Agreement as of the
date first set forth above.

 

 

	
   

  	
  FERGUSON:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  J &
  J PROPERTIES, L.L.C.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James S. Ferguson

  	
   

  
	
   

  	
  James S. Ferguson

  	
   

  
					

 

 

The foregoing
Reciprocal Easement Agreement was acknowledged before me this day of 1st
day of June, 2004, by James S. Ferguson of J & J Properties,
L.L.C., a Kansas limited liability company.

 

 

	
   

  	
  /s/ Vickie J. Fastnacht

  	
   

  
	
   

  	
  Notary
  Public in and for

  
	
   

  	
  Said County
  and State

  
	
   

  	
   

  
	
  My Commission
  Expires:

  	
   

  
	
   

  	
   

  
	
  11/26/2005

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Renner

  	
   

  
	
   

  	
   

  
	
   

  	
  Renner
  PARTNERS, a Kansas limited

  
	
   

  	
  liability
  company

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James C. Ferguson

  	
   

  
	
   

  	
  James C.
  Ferguson, Trustee of the

  
	
   

  	
  Ferguson
  Living Trust dated August 19, 1996

  
	
   

  	
  MEMBER

  
	
   

  	
   

  	
   

  
	
   

  	
  J&J
  Properties, LLC, MEMBER

  
	
   

  	
  a Kansas
  Limited Liability Company

  
								

 

26

 

	
   

  	
  By:

  	
  /s/ James S. Ferguson

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BEN-LEE,
  L.L.C., MEMBER

  
	
   

  	
  a Kansas
  Limited Liability Company

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Don Crabtree

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  William E. White, Jr., MEMBER

  	
   

  
									

 

 

The foregoing
Reciprocal Easement Agreement was acknowledged before me this day of 1st
day of June, 2004, by James S. Ferguson; William E. White, Jr.,
Member of Renner Partners, L.L.C., a Kansas limited liability company.

 

	
   

  	
   /s/ Vickie J. Fastnacht

  	
   

  
	
   

  	
  Notary
  Public in and for

  
	
   

  	
  Said County
  and State

  
	
   

  	
   

  
	
  My
  Commission Expires:

  	
   

  
	
   

  	
   

  
	
  11/26/2005

  	
   

  	
   

  
				

 

27

 

EXHIBIT ‘A’

 

All of Lot 4,
RENNER BUSINESS CENTER, a subdivision in the City of Lenexa, Johnson County,
Kansas, excepting therefrom:

 

A tract of
land being part of Lot 4, RENNER BUSINESS CENTER, a subdivision in the City of
Lenexa, Johnson County, Kansas, being more particularly described as follows:

 

Commencing at
the Southeast corner of said Lot 4, RENNER BUSINESS CENTER, as now platted;
Thence S 89°02’43” W, along the South line of said Lot 4, 204.57 feet, to the
Point of Beginning; Thence, continuing along said South line, S 89°02’43” W,
157.50 feet; Thence N 00°57’14” W, 292.04 feet, to a point on the North line of
said Lot 4; Thence Southeasterly along said North line, along a curve to the
left, having an initial tangent bearing of S 77°15’03”E, a radius of 330.00
feet, and an arc length of 47.68 feet; Thence continuing along said North line,
S 85°32’14” E, 111.02 feet; Thence S 00°57’17” E, 273.64 feet, to the Point of
Beginning, containing 44,328.44 square feet, or 1.02 acres, more or less.

 

28

 

EXHIBIT ‘B’

 

Tract II

 

A tract of
land being part of Lot 4, RENNER BUSINESS CENTER, a subdivision in the City of
Lenexa, Johnson County, Kansas, being more particularly described as follows:

 

Commencing at
the Southeast comer of said Lot 4, RENNER BUSINESS CENTER, as now platted;
Thence S 89°02’43” W, along the South line of said Lot 4, 204.57 feet, to the
Point of Beginning; Thence, continuing along said South line, S 89°02’43” W,
157.50 feet; Thence N 00°57’14” W, 292.04 feet, to a point on the North line of
said Lot 4; Thence Southeasterly along said North line, along a curve to the
left, having an initial tangent bearing of S 77°15’03”E, a radius of 330.00
feet, and an arc length of 47.68 feet; Thence continuing along said North line,
S 85°32’14” E, 111.02 feet; Thence S 00°57’17” E, 273.64 feet, to the Point of
Beginning, containing 44,328.44 square feet, or 1.02 acres, more or less.

 

29

 

PARKING LICENSE

 

THIS AGREEMENT
made and entered into this 12 day of April, 2005, by and between J &
J Properties, L.L.C., a Kansas Limited Liability Company (“Building A Owner”),
116 Renner Partners, L.L.C. (“Building B Owner”) and ICOP Digital, Inc., a
Colorado corporation (“Building B Tenant” and/or “Tenant”).

 

WHEREAS,
Building B Owner desires to lease Building B to the Building B Tenant who
desires to lease the building from the Building B Owner,

 

WHEREAS, in
order to properly utilize Building B the Tenant requires the use of an
additional six (6) parking spaces, which spaces were available on Lot A
which is owned by the Building A Owner;

 

WHEREAS, the
Building A Owner is a member of the Building B Owner
limited liability company and desires that Building B Owner enter into such
lease with the Building B Tenant;

 

NOW,
THEREFORE, in consideration of the mutual promises as hereinafter set forth, in
order to induce the Building B Tenant to execute the Building B Lease, the
payment by the Building B Owner to the Building A Owner of $10 per year rent
Provided failure to pay such rent will not cancel the license until Tenant is given
written notice and thirty (30) days in which to pay any unpaid rent and other
good and valuable consideration the receipt of which is hereby acknowledged,
the parties hereto agree as follows:

 

1.             The Building A Owner, in order to
induce the Building B Tenant to execute the Lease Agreement of even date
herewith with the Building B Owner hereby grants the Building B Tenant a License to use the six striped parking
places as shown on Exhibit A attached hereto and made a part hereof
without payment of any addition fee by the Building B Tenant except pursuant to
its right to cure any nonpayment rent by Building B Owner as set forth above..

 

2.             The term of such License shall
commence on July 1, 2005 (or such other date as shall become the
Commencement Date under Tenant’s Building B Lease Agreement and shall continue
for (a) the entire five year initial term of the Building B Lease, (b) shall
be extended under either of the two five year optional extensions of term
pursuant to such Lease to June 30, 2015 and June 30, 2020
respectively, if and only if Tenant validly exercises each such option pursuant
to the terms of such Lease and thereafter continues to occupy the building as
tenant.

 

3.             The License shall expire on the
earlier to occur of the following dates: (a) June 30, 2005 if the
first extension option under its Lease with the Building B Owner is not timely
exercised; (b) June 30, 2010 if tenant timely exercises the first
extension option; (c) June 30, 2020 if Tenant timely exercises the
second extension option in which events the License shall be extended and run
contemporaneous with any extended term of the Lease pursuant to the two options
to extend; (d) the date on which the Lease is earlier terminated pursuant
to any of the provisions thereof including any termination resulting from a
default of Tenant pursuant to the terms of the Lease; (e) the day of
assignment by Tenant of any of it’s rights under the Lease; and (f) the
date of sale by the Building B Owner to Building B Tenant pursuant to Tenant’s
exercise of its purchase right under the Lease Agreement.

 

30

 

4.             This Agreement is made and entered
into in the State of Kansas as of the date first above written and shall be
governed in accordance with the laws of the State of Kansas.

 

5.             This Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and assigns.

 

IN WITNESS
WHEREOF the parties hereto have executed this Agreement the day and year first
above written.

 

 

	
   

  	
  J &
  J PROPERTIES, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James S. Ferguson

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  116 RENNER
  PARTNERS, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James C. Ferguson

  	
   

  
	
   

  	
  James C.
  Ferguson, Trustee of the Ferguson Living

  
	
   

  	
  Trust

  
	
   

  	
  dated
  August 19, 1996, MEMBER

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  J&J
  Properties, LLC, MEMBER

  
	
   

  	
  A Kansas
  Limited Liability Company

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James S. Ferguson

  	
   

  
	
   

  	
  James S.
  Ferguson

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BEN-LEE,
  L.L.C., MEMBER

  
	
   

  	
  A Kansas
  Limited Liability Company

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Don Crabtree

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  William E.
  White

  
	
   

  	
  MEMBER

  
	
   

  	
   

  	
   

  
	
   

  	
  ICOP DIGITAL,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ David C. Owen

  	
   

  
	
   

  	
  Name:

  	
  David C.
  Owen

  
	
   

  	
  Title:

  	
  President/CEO

  
							

 

31

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}]]