Document:

Filed by Bowne Pure Compliance

 

Exhibit 10.35

SUBSCRIPTION AGREEMENT

The undersigned, William J. Roberts (the “Investor”), hereby agrees with DPAC
Technologies Corp., a California corporation (the “Company”), as follows:

	1.	 	Investor hereby purchases seven hundred fifty (750) shares of Series A Convertible Preferred
Stock (“Series A Preferred Stock”), without par value (the “Preferred Stock”)
of the Company at a price per share of $100.00, and agrees to pay to the Company on the date
hereof a total purchase price of $75,000 (the “Purchase Price”), by wire transfer.
	 
	2.	 	Investor acknowledges, represents and warrants to the Company as follows:

(a) Investor understands that neither the Preferred Stock nor the common stock,
without par value (the “Common Stock”) of the Company into which the Series
A Preferred Stock may convert into has been registered under the Securities Act of
1933, as amended (the “Federal Act”) or any state’s securities laws by
reason of specific exemptions under the provisions thereof which depend in part upon
the representations made by Investor in this Agreement. Investor understands that
the Company is relying upon Investor’s representations and agreements contained in
this Agreement (and any supplemental information furnished by Investor, if any) for
the purpose of determining whether this transaction meets the requirements for such
exemptions.

(b) Investor has such knowledge, skill and experience in business, financial and
investment matters so that Investor is capable of evaluating the merits and risks of
an investment in the Preferred Stock.

(c) Investor has made such independent investigation of the Company, its management,
and related matters as the Investor deems to be necessary or advisable in connection
with an investment in the Preferred Stock; and Investor has received all information
and data which the Investor believes to be necessary in order to reach an informed
decision as to the advisability of an investment in the Preferred Stock.

(d) Investor is an accredited investor within the meaning of Rule 501(a) of
Regulation D promulgated under the Federal Act.

(e) Investor understands that the Preferred Stock and the shares of Common Stock
issuable upon conversion of the Preferred Stock are “restricted securities” under
applicable Federal securities laws and that the Federal Act and the rules of the
Securities and Exchange Commission provide in substance that Investor may dispose of
the Preferred Stock or Common Stock issuable upon conversion of the Preferred Stock
only pursuant to an effective registration statement under the Federal Act or an
exemption from such registration, if available.

 

 

 

(f) Investor hereby confirms that Investor is acquiring the Preferred Stock for
investment only and not with a view to or in connection with any resale or
distribution of the Preferred Stock.

(g) Investor hereby confirms that its residence or principal place of business is
within the State of North Carolina.

	3.	 	The Company acknowledges, represents and warrants to the Investor as follows:

(a) All of the outstanding shares of capital stock of the Company are duly
authorized, validly issued, fully paid and nonassessable, and free and clear of all
preemptive rights, rights of first refusal, liens, charges, restrictions, claims and
any other encumbrances imposed by or through the Company other than the securities
laws. The Preferred Stock has been offered, issued, sold and delivered in
compliance with applicable federal and state securities laws, and none of such
securities are or were at the time of issuance of any preemptive rights. The
Preferred Stock and the Common Stock issuable upon conversion of the Preferred
Stock, will be, duly and validly issued, fully paid and nonassessable and free and
clear of all preemptive rights, rights of first refusal, liens, charges,
restrictions, claims and any other encumbrances imposed by or through the Company.
The aggregate authorized capital stock of the Company immediately prior to the
issuance of the Preferred Stock consists of one hundred twenty million (120,000,000)
 shares of Common Stock, of which, as of February 20, 2008, 92,890,834 are currently
issued and outstanding, and eight million (8,000,000) shares of preferred stock, of
which 20,000 are issued and outstanding. The Certificate of Incorporation of the
Company (including the rights, preferences and other terms of the Preferred Stock)
and Bylaws of the Company are as set forth as Exhibits A and B
hereto. There are no outstanding options or warrants to purchase any capital stock
or any other security convertible into equity securities of the Company, except for
the following:

(i) Under the 1996 Stock Option Plan, as amended (the “Plan”), fifteen
million (15,000,000) shares of Common Stock are available to be purchased.
As of January 29, 2008, the total number of options outstanding was
11,922,000.

(ii) There are currently outstanding warrants to purchase six million nine
hundred twenty-three thousand seven hundred forty-nine (6,923,749) shares of
Common Stock. Additionally, the Company has issued a common stock purchase
warrant to Canal Mezzanine Partners, L.P. exercisable from time to time with
respect to three percent (3%) of the issued and outstanding capital stock of
the Company, calculated on a fully diluted basis.

 

 

 

(b) The Company is not an “investment company” nor a company “controlled” by an
“investment company” within the meaning of the Investment Company Act of 1940, as
amended.

(c) The Company is not a “dealer” as defined in the Securities Act nor a
broker-dealer (or broker, dealer) as defined under any applicable state securities
laws.

(d) The Company shall use the proceeds related to the sale of the Preferred Stock to
Investor to retire certain debt obligations of the Company and for general corporate
purposes.

	4.	 	Limitation on Representations and Warranties. The representations and warranties made
pursuant to Section 3 hereof are the sole representations and warranties of the Company.

	5.	 	Survival of Representations and Warranties. The representations and warranties of
the Company made pursuant to Section 3 hereof shall survive for a period of twenty-four (24)
months from the date hereof when they shall terminate, unless notice in writing of breach
thereof was given prior to termination, except that the representations and warranties in
Sections 3(a) hereof shall survive indefinitely.

	6.	 	Indemnification by Company. The Company agrees to indemnify, defend and hold the
Investor harmless from and against any and all claims, demands, losses, expenses, costs,
obligations, damages, liabilities and expense (including all costs, interest, penalties and
reasonable attorneys fees) (collectively, “Losses”) which Investor may incur, suffer or
sustain, which arise, result from or relate to any breach of or failure by Sellers to perform
any of their representations, warranties, covenants or agreements under this Agreement
(including such representations and warranties incorporated herein) or in any exhibit to this
Agreement, as if any and all materiality and knowledge qualification provisions were not
contained therein.

	7.	 	Legend. Investor acknowledges and agrees that the certificate(s) evidencing the
Preferred Stock will bear the a legend substantially similar to the following, until otherwise
registered for re-sale:

THE SHARES OF PREFERRED STOCK REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933 OR UNDER ANY STATE SECURITIES
LAWS (THE “ACTS”) AND MAY NOT BE SOLD OR OTHERWISE TRANSFERRED EXCEPT
PURSUANT TO A REGISTRATION STATEMENT EFFECTIVE UNDER THE ACTS OR AN OPINION
OF COUNSEL SATISFACTORY TO THE MAKER THAT THE TRANSFER OF THESE SHARES ARE
EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE ACTS.

 

 

 

	8.	 	Amendment Investor and the Company acknowledge that the Company currently may not
have sufficient shares of authorized Common Stock if the Preferred Stock were to be
immediately converted. The Company covenants to take all reasonable efforts to amend its
articles of incorporation to provide for adequate shares of Common Stock issuable upon
conversion of the Preferred Stock. Investor agreed to vote for or consent to such amendment
with respect to all shares of Common Stock and Preferred Stock owned by it.

	9.	 	Registration Rights Investor is as of the date hereof entering into an amendment and
joinder to that certain Shareholder and Registration Rights Agreement dated as of May 11,
2005.

	10.	 	Investor acknowledges that neither the Company nor any person acting on its behalf has
offered or sold the Preferred Stock to Investor by any form of general solicitation, general
or public media advertising or mass mailing.

	11.	 	This Subscription Agreement shall be deemed to be a contract under the Laws of the State of
Ohio and shall for all purposes be governed by and construed and enforced in accordance with
the laws of the State of Ohio.

	12.	 	Neither this Subscription Agreement nor any provisions hereof shall be modified, changed,
discharged or terminated except by an instrument in writing signed by the party against whom
any waiver, change, discharge or termination is sought.
	 
	13.	 	This Subscription Agreement is not transferable or assignable by Investor or the Company.

	14.	 	This Subscription Agreement, and the Preferred Stock constitute the entire understanding of
the parties with respect to the subject matter hereof and supersedes any and all prior
understandings and agreements, whether written or oral, with respect to such subject matter.

	15.	 	This Subscription Agreement and the Preferred Stock shall only be binding upon a party (that
is a signatory thereto) when executed by the parties thereto.

	16.	 	This Subscription Agreement may be executed in counterparts, all of which shall constitute
the same instrument.

[THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK]

 

 

 

IN WITNESS WHEREOF, the undersigned, intending to be legally bound, do hereby execute this
Subscription Agreement as of this 24th day of March 2008.

	 	 	 	 	 
	 	 	DPAC Technologies Corp.
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Steven Runkel
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:
	 	Steven Runkel
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:
	 	President & CEO
	 

	 	 	 	 

 

	 	 	 	 	 
	 	 	INVESTOR
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	Signature:
	 	/s/ William J. Roberts
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:
	 	William J. Roberts
	 

	 	 	 	 

 

 

 

Exhibit A

Certificate of Incorporation

 

 

 

Exhibit B

BylawsFiled by Bowne Pure Compliance

 

Exhibit 10.32

 

OFFICE BUILDING LEASE

BETWEEN

CAMBRIC PARTNERS,

AN ARIZONA GENERAL PARTNERSHIP

“LANDLORD”

AND

IMARX THERAPEUTICS, INC.,

A DELAWARE CORPORATION

“TENANT”

 

 

LEASE SUMMARY

ImaRx Therapeutics, Inc.

	 	 	 
	Date:

	 	December 10, 2007
	 
	 	 
	Tenant:

	 	IMARX THERAPEUTICS, INC.,
	 

	 	A DELAWARE CORPORATION
	 
	 	 
	Premises:

	 	1730 East River Road, Suite 200 of the second (2nd) floor, City of Tucson, State of Arizona
85718 consisting of
approximately 7,849 rentable square feet
	 
	 	 
	Building:

	 	Cambric Corporate Center
	 
	 	 
	Term:

	 	Sixty (60) months
	 
	Lease Commencement:

	 	January 1, 2008 or upon substantial completion of Tenant Improvements
	 
	 	 
	Lease Expiration:

	 	December 31, 2012
	 
	 	 
	Primary Term Rent:

	 	See Schedule “G”
	 
	 	 
	Pre-Paid Rent:

	 	Landlord requires prepaid rent in the amount of $15,698.00 plus 2.5% tax for a total of $16,090.45 which
shall be applied to the basic rent for January 2008.
	 
	 	 
	Security Deposit:

	 	$19,433.47
	 
	 	 
	Total due at
	 	 
	Lease execution:

	 	$35,523.92
	 
	 	 
	Proportionate Share:

	 	7,849 S.F. (Leased Premises)  ̧ 163,368 S.F. (Building) = 4.80%
	 
	 	 
	Operating Expenses:

	 	2008 Base Year
	 
	 	 
	Tenant Improvements:

	 	See Schedule “H”
	 
	 	 
	Parking:

	 	See Schedule “I”
	 
	 	 
	Guarantor:
	 	 
	 
	 	 
	Signage:

	 	Suite and directory signs shall be at the sole cost of Tenant.
	 
	 	 
	Monthly Rental
	 	 
	Remittance Address:

	 	Cambric Partners
	 

	 	P.O. Box 22055
	 

	 	Tempe, AZ 85285-2055
	 
	 	 
	 

	 	All Checks Must Be Made Payable to Cambric Partners
	 
	 	 
	Notice Address:

	 	2301 Campus Drive, Suite 200
	 

	 	Irvine, CA 92612

					
	 	 	 	 	 
	Standard Lease Form
	 	
	 	 
	Form FSGLI (894)	 	 	 	 
	3/27/2008	 	 	 	 

 

 

INDEX

	 	 	 	 	 
	 	 	Page	 
	 
	1. LEASED PREMISES
	 	 	1	 
	 
	 	 	 	 
	2. TERM
	 	 	 	 
	(a) Term
	 	 	1	 
	(b) Delay in Occupancy
	 	 	2	 
	(c) Holding Over
	 	 	2	 
	 
	 	 	 	 
	3. RENT
	 	 	 	 
	(a) Basic Rent
	 	 	2	 
	(b) Additional Rent
	 	 	2	 
	(i) Taxes
	 	 	2	 
	(ii) Operating Costs
	 	 	2	 
	(c) Payment — Additional Rent
	 	 	3	 
	(d) Accrual of Rent
	 	 	3	 
	(e) Recovery of Rent
	 	 	3	 
	(f) Limitations
	 	 	3	 
	(g) Late Fees
	 	 	4	 
	 
	 	 	 	 
	4. SECURITY DEPOSIT
	 	 	4	 
	 
	 	 	 	 
	5. GENERAL COVENANTS
	 	 	 	 
	(a) Landlord’s Covenant
	 	 	4	 
	(b) Tenant’s Covenant
	 	 	4	 
	 
	 	 	 	 
	6. USE AND OCCUPANCY
	 	 	 	 
	(a) Use
	 	 	5	 
	(b) Waste, Nuisance, etc.
	 	 	5	 
	(c) Insurance Risks
	 	 	5	 
	(d) Compliance with Law
	 	 	5	 
	(e) Environmental Compliance
	 	 	5	 
	(f) Rules and Regulations
	 	 	5	 
	 
	 	 	 	 
	7. ASSIGNMENT AND SUBLETTING
	 	 	 	 
	(a) Restriction on Transfer
	 	 	5	 
	(b) Corporate and Partnership Transfers
	 	 	6	 
	(c) Permitted Controlled Transfers
	 	 	6	 
	(d) Transfer Notice
	 	 	6	 
	(e) Landlord’s Options
	 	 	7	 
	(f) Reasonable Disapproval
	 	 	7	 
	(g) Additional Conditions
	 	 	7	 
	(h) Excess Rent
	 	 	8	 
	(i) Termination Rights
	 	 	8	 
	(j) No Release
	 	 	9	 
	(k) Administrative and Attorneys’ Fees
	 	 	9	 
	 
	 	 	 	 
	8. REPAIR AND DAMAGE
	 	 	 	 
	(a) Landlord’s Repairs to Building and Property
	 	 	9	 
	(b) Landlord’s Repairs to the Leased Premises
	 	 	9	 
	(c) Tenant’s Repairs
	 	 	10	 
	(d) Indemnification
	 	 	10	 
	(e) Damage and Destruction
	 	 	10	 

					
	 	 	 	 	 
	Standard Lease Form
	 	i
	 	 
	Form FSGLI (894)	 	 	 	 
	3/27/2008	 	 	 	 

 

 

	 	 	 	 	 
	 	 	Page	 
	 
	9. INSURANCE AND LIABILITY
	 	 	 	 
	(a) Landlord’s Insurance
	 	 	11	 
	(b) Tenant’s Insurance
	 	 	12	 
	(c) Limitation of Landlord’s Liability
	 	 	13	 
	(d) Indemnity of Landlord
	 	 	13	 
	(e) Definition of “Insured Damage”
	 	 	13	 
	 
	 	 	 	 
	10. EVENTS OF DEFAULT AND REMEDIES
	 	 	 	 
	(a) Events of Default and Remedies
	 	 	13	 
	(b) Payment of Rent, etc. on Termination
	 	 	14	 
	(c) Tenant to pay on demand
	 	 	16	 
	 
	 	 	 	 
	ADDITIONAL PROVISIONS
	 	 	 	 
	 
	 	 	 	 
	11. Relocation of Leased Premises
	 	 	17	 
	12. Subordination and Attornment
	 	 	17	 
	13. Certificates
	 	 	17	 
	14. Tenant’s Compliance with Gov’t Ordinances, Regulations and Laws
	 	 	17	 
	15. Inspection of and Access to the Leased Premises
	 	 	18	 
	16. Delay
	 	 	18	 
	17. Waiver
	 	 	18	 
	18. Sale, Demolition and Renovation
	 	 	18	 
	19. Construction
	 	 	19	 
	20. Public Taking
	 	 	19	 
	21. Registration of Lease
	 	 	19	 
	22. Entire Lease Agreement
	 	 	20	 
	23. Notices
	 	 	20	 
	24. Interpretation
	 	 	20	 
	25. Extent of Lease Obligations
	 	 	20	 
	26. Prior Use and Occupancy Prior to Term
	 	 	21	 
	27. Alterations, Additions and Improvements
	 	 	21	 
	28. Schedules
	 	 	21	 
	29. Brokers
	 	 	22	 

	 	 	 	 	 
	Definitions of Principal Terms	 	Paragraph	 	Page
	 
	Additional Rent

	 	 3(b)
	 	 2
	Additional Services

	 	 4(a)(b)
	 	 D-2
	Basic Rent

	 	 3(a)
	 	 2
	Building

	 	 1
	 	 1
	Fiscal Period

	 	 3(c)
	 	 2
	Insured Damage

	 	 9(e)
	 	 13
	Landlord

	 	 	 	 1
	Landlord’s Taxes

	 	 1(d)
	 	 C-1
	Leased Premises

	 	 1
	 	 1
	Leasehold Improvements

	 	 1
	 	 F-1
	Landlord’s Work

	 	 2
	 	 F-1
	Operating Costs

	 	 5
	 	 D-2
	Property

	 	 1
	 	 1
	Public Taking

	 	 20
	 	 19
	Rent

	 	 3(d)
	 	 3
	Taxes

	 	 2(d)
	 	 C-2
	Tenant

	 	 	 	 1
	Tenant’s Proportionate Share

	 	 2(d)
	 	 C-2
	Tenant’s Proportionate Share

	 	 8
	 	 D-4
	Tenant’s Taxes

	 	 2(c)
	 	 C-1
	Term

	 	 2(a)
	 	 1

					
	 	 	 	 	 
	Standard Lease Form
	 	ii
	 	 
	Form FSGLI (894)	 	 	 	 
	3/27/2008	 	 	 	 

 

 

	 	 	 	 	 
	Exhibits	 	Schedule	 	Page
	 
	Legal Description of Lands

	 	 “A”
	 	 A-1
	Outline of Leased Premises

	 	 “B”
	 	 B-1
	Taxes payable by Landlord and Tenant

	 	 “C”
	 	 C-1
	Services and Costs

	 	 “D”
	 	 D-1
	Rules and Regulations

	 	 “E”
	 	 E-1
	Leasehold Improvements

	 	 “F”
	 	 F-1
	Basic Rent

	 	 “G”
	 	 G-1
	Tenant Improvements

	 	 “H”
	 	 H-1
	Parking

	 	 “I”
	 	 I-1
	Guaranty

	 	“J”
	 	J-1
	Tenant Information Sheet

	 	 “K”
	 	 K-1
	Signage Agreement

	 	 “L”
	 	 L-1
	License for Antenna Site

	 	“M”
	 	M-1
	Addendum to Lease

	 	 “N”
	 	 N-1

					
	 	 	 	 	 
	Standard Lease Form
	 	iii
	 	 
	Form FSGLI (894)	 	 	 	 
	3/27/2008	 	 	 	 

 

 

THIS AGREEMENT made this 10th day of December 2007

BETWEEN:

CAMBRIC PARTNERS,

an Arizona general partnership having the
offices of General Partner,

Colton Properties, Inc., a California corporation

at 2301 Campus Drive, Suite 200

in the City of Irvine

County of Orange

State of California

(Hereinafter
called the “Landlord”) OF THE FIRST PART,

—and—

IMARX THERAPEUTICS, INC.,

a Delaware corporation

having an office at 1730 E. River Road, Suite 200

in the City of Tucson

County of Pima

State of Arizona

(Hereinafter called the “Tenant”) OF THE SECOND PART,

In consideration of the rents, covenants and agreements hereinafter contained, the Landlord and
Tenant hereby agree as follows:

1. LEASED PREMISES

Leased Premises

The Landlord does demise and lease to the Tenant the premises (the “Leased
Premises”) located in a building (the “Building”) having a municipal address of 1730 East
River Road, Suite 200 in the City of Tucson, County of Pima, State of Arizona and known as
Cambric Corporate Center (the Leased Premises, the Building, together with the lands described
in Schedule “A” attached and present and future improvements, additions and changes thereto
being herein called the “Property”), the Leased Premises consisting of approximately 7,849
rentable square feet on the second (2nd) floor as shown on the plan marked Schedule
“B” attached hereto, excluding the exterior surfaces of the exterior walls of the Leased
Premises.

2. TERM

Term

(a) TO HAVE AND TO HOLD the Leased Premises for and
during the term of sixty (60) months (the “Term”) to be
computed from the 1st day of January 2008,
and to be fully complete and ended on the
31st day of December 2012, unless otherwise
terminated.

					
	 	 	 	 	 
	Standard Lease Form
	 	1-1
	 	 
	Form FSGLI (894)	 	 	 	 
	3/27/2008	 	 	 	 

 

 

Delay in Occupancy

(b) If the Leased Premises or any part thereof are
not ready for occupancy on the date of commencement of
the Term, no part of the “Rent” (as hereinafter
defined) or only a proportionate part thereof, in the
event that the Tenant shall occupy a part of the Leased
Premises, shall be payable for the period prior to the
date when the entire Leased Premises are ready for
occupancy and the full Rent shall accrue only after
such last mentioned date. The Tenant agrees to accept
any such abatement of Rent in full settlement of all
claims, which the Tenant might otherwise have by
reason of the Leased Premises not being ready for occupancy on the date of
commencement of the Term. Not withstanding the foregoing, provided that
when the Landlord has completed construction of such part of the Leased
Premises as it is obliged hereunder to construct, the Tenant shall not be
entitled to any abatement of Rent for any delay in occupancy due to the
Tenant’s failure or delay to provide plans or to complete any special
installations or other work required for its purposes or due to any other
reason, nor shall the Tenant be entitled to any abatement of Rent for any
delay in occupancy if the Landlord has been unable to complete construction
of the Leased Premises by reason of such failure or delay by the Tenant.
Notification by the Landlord as to the date the Leased Premises were ready
for occupancy and such construction as the Landlord is obliged to complete
is substantially completed, or as to the date upon which the same would have
been ready for occupancy and completed respectively but for the failure or
delay of the Tenant, shall be conclusive and binding on the Tenant and Rent
in full shall accrue and become payable from the date set. Not-withstanding
any delay in occupancy, the expiration date of this Lease shall remain
unchanged. In no event, shall Landlord be liable to Tenant for any
incidental, special or consequential damages, including, but not limited to,
loss of opportunities, loss of business or loss of profit, no matter what
theory the claim is based on, including contract, tort, strict liability of
statute, in the event that Landlord fails to deliver the Leased Premises to
Tenant on any date specified in this Lease.

Holding Over

(c) If, at the expiration of the Term or sooner termination hereof, the Tenant shall
remain in possession without any further written agreement or in circumstances where a tenancy
would thereby be created by implication of law or otherwise, a tenancy from year to year shall
not be created by implication of law or otherwise, but the Tenant shall be deemed to be a
monthly tenant only, at double “Basic Rent” (as hereinafter defined) payable monthly in
advance plus “Additional Rent” (as hereinafter defined) and otherwise upon and subject to the
same terms and conditions as herein contained, excepting provisions for renewal (if any) and
leasehold improvement allowance (if any), contained herein, and nothing, including the
acceptance of any Rent by the Landlord, for periods other than monthly periods, shall extend
this Lease to the contrary except an agreement in writing between the Landlord and the Tenant
and the Tenant hereby authorizes the Landlord to apply any monies received from the Tenant in
payment of such monthly Rent. In the event of any unauthorized holding over, Tenant shall
indemnify, defend and hold Landlord harmless from and against all claims for damages (and
reimburse Landlord upon demand for any sums paid in settlement of any such claims) by any
other Tenant or prospective Tenant to whom Landlord may have leased all or any part of the
premises effective before or after the expiration of the lease Term and by any broker claiming
any commission or fee in respect of any such lease or offer to lease.

3. RENT

Basic Rent

(a) See Schedule “G”.

Additional Rent

(b) The Tenant shall, without
deduction or right of offset,
except as provided for in this
Lease, pay to the Landlord yearly
and every year during the Term as
additional rental (hereinafter
called “Additional Rent”)

(i) the amounts of any Taxes payable by the Tenant to the Landlord
pursuant to the provisions of Schedule “C” attached hereto; and

(ii) the amounts required to be paid to the Landlord pursuant to the
provisions of Schedule “D” attached hereto.

					
	 	 	 	 	 
	Standard Lease Form
	 	2-1
	 	 
	Form FSGLI (894)	 	 	 	 
	3/27/2008	 	 	 	 

 

 

Payment

(c) Additional Rent shall be paid and adjusted with
reference to a fiscal period of twelve (12)
calendar months (“Fiscal Period”), which shall
be a calendar year unless the Landlord shall
from time to time have selected a Fiscal Period
which is not a calendar year by written notice
to the Tenant. The Landlord shall advise the
Tenant in writing of its estimate of the
Additional Rent to be payable by the Tenant
during the Fiscal Period (or broken portion of
the Fiscal Period, as the case may be, if
applicable at the commencement or end of the
Term or because of a change in Fiscal Period)
which commenced upon the commencement date of
the Term and for each succeeding Fiscal Period
or broken portion thereof which commences during
the Term. Such estimate shall, in every case,
be a reasonable estimate and, if requested by
the Tenant, shall be accompanied by reasonable
particulars of the manner in which it was
calculated. The Additional Rent payable by the
Tenant shall be paid in equal monthly
installments in advance at the same time as
payment of Basic Rent is due hereunder based on
the Landlord’s estimate as aforesaid. From time
to time, the Landlord may re-estimate, on a
reasonable basis, the amount of Additional Rent
for any Fiscal Period or broken portion thereof,
in which case the Landlord shall advise the
Tenant in writing of such re-estimate and fix
new equal monthly installments for the remaining
balance of such Fiscal Period or broken portion
thereof. After the end of each such Fiscal
Period or broken portion thereof the Landlord
shall submit to the Tenant a statement of the
actual Additional Rent payable in respect of
such Fiscal Period or broken portion thereof and
a calculation of the amounts by which the
Additional Rent payable by the Tenant exceeds or
is less than (as the case may be) the aggregate
installments paid by the Tenant on account of
Additional Rent for such Fiscal Period. Within
thirty (30) days after the submission of such
statement either the Tenant shall pay to the
Landlord any amount by which the amount found
payable by the Tenant with respect to such
Fiscal Period or broken portion thereof exceeds
the aggregate monthly payments made by it on
account thereof during such Fiscal Period or
broken portion thereof, or the Landlord shall
pay to the Tenant any amount by which the amount
found payable as aforesaid is less than the
aggregate of such monthly payments.

Accrual of Rent

(d) Basic Rent and Additional Rent (herein
collectively called “Rent”) shall be considered
as accruing from day to day, and Rent for an
irregular period of less than one year or less
than one calendar month shall be apportioned and
adjusted by the Landlord for the Fiscal Periods
of the Landlord in which the tenancy created
hereby commences and expires. Where the
calculation of Additional Rent for a period
cannot be made until after the termination of
this Lease, the obligation of the Tenant to pay
Additional Rent shall survive the termination
hereof and Additional Rent for such period shall
be payable by the Tenant upon demand by the
Landlord. If the Term commences or expires on
any day other than the first or the last day of
a month, Rent for such fraction of a month shall
be apportioned and adjusted as aforesaid and
paid by the Tenant on the commencement date of
the Term.

Recovery of Rent

(e) Rent and any other amounts required to be paid
by the Tenant to the Landlord under this Lease
shall be deemed to be and be treated as rent and
payable and recoverable as rent, and the
Landlord shall have all rights against the
Tenant for default in any payment of rent and
other amounts as in the case of arrears in rent.

Limitations

(f) The information set out in statements, documents
or other writings setting out the amount of
Additional Rent submitted to the Tenant under or
pursuant to this Lease shall be binding on the
Tenant and deemed to be accepted by it and shall
not be subject to amendment for any reason
unless the Tenant gives written notice to the
Landlord within sixty (60) days of the
Landlord’s submission of such statement,
document or other writing
identifying the statement, document, or writing and setting out in
reasonable detail the reason why such statement, document, or writing should
not be binding on the Tenant.

					
	 	 	 	 	 
	Standard Lease Form
	 	3-1
	 	 
	Form FSGLI (894)	 	 	 	 
	3/27/2008	 	 	 	 

 

 

Late Fee

(g) All rent is due and payable on the first day of each month. Rent is delinquent after
the tenth (10th) day of the month. A 10% late fee is assessed on the eleventh
(11th) day of the month. All late fees shall be considered an item of Additional
Rent.

4. SECURITY DEPOSIT

Security Deposit

The Landlord shall recognize the Tenant’s security deposit upon execution of this
Lease by the Tenant for the sum of Nineteen Thousand Four Hundred Thirty-Three Dollars and
Forty-Seven Cents ($19,433.47) as a deposit to the Landlord to stand as security for the
payment by the Tenant of any and all present and future debts and liabilities of the Tenant to
the Landlord and for the performance by the Tenant of all of its obligations arising under or
in connection with this Lease (the “Debts, Liabilities and Obligations”). Tenant shall not
apply the security deposit as rent. At all times Tenant shall maintain a security deposit
with Landlord in an amount equal to one hundred ten percent (110%) of the last month’s rent
for the Leased Premises. Landlord shall bill Tenant for any such additional security deposit
as required. The Landlord shall not be required to keep the deposit separate from its general
funds. In the event of the Landlord disposing of its interest in this Lease, the Landlord
shall credit the deposit to its successor and thereupon shall have no liability to the Tenant
to repay the security deposit to the Tenant. Subject to the foregoing and to the Tenant not
being in default under this Lease, the Landlord shall repay the security deposit to the Tenant
without interest at the end of the Term or sooner termination of the Lease provided that all
Debts, Liabilities and Obligations of the Tenant to the Landlord are paid and performed in
full, failing which the Landlord may on notice to the Tenant elect to retain the security
deposit and to apply it in reduction of the Debts, Liabilities and Obligations and the Tenant
shall remain fully liable to the Landlord for payment and performance of the remaining Debts,
Liabilities and Obligations. Landlord will refund Tenant’s security deposit, less any offsets
as set forth in this paragraph, approximately 30 days after Tenant’s tenancy has terminated
and Tenant has vacated, returned keys and removed any and all personal property from Leased
Premises.

5. GENERAL COVENANTS

Landlord’s Covenant

(a) The Landlord covenants with the Tenant:

(i) for quiet enjoyment; and

(ii) to observe and perform all the covenants and obligations of the
Landlord herein.

Tenant’s Covenant

(a) The Tenant covenants with the Landlord:

(i) to pay Rent; and

(ii) to observe and perform all the covenants and obligations of the
Tenant herein.

					
	 	 	 	 	 
	Standard Lease Form
	 	4-1
	 	 
	Form FSGLI (894)	 	 	 	 
	3/27/2008	 	 	 	 

 

 

6. USE AND OCCUPANCY

Use

The Tenant covenants with the Landlord:

(a) not to use the Leased Premises for any purpose other than an office for
the conduct of the Tenant’s business which is general office use.

Waste, Nuisance, Etc.

(b) not to commit, or permit, any waste, injury or
damage to the Property including the Leasehold
Improvements and any trade fixture therein, any
loading of the floors thereof in excess of the
maximum degree of loading as determined by the
Landlord acting reasonably, any nuisance therein
or any use or manner of use causing annoyance to
the other tenants and occupants of the Property
or to the Landlord;

Insurance Risks

(c) not to do, omit or permit to be done or omitted
to be done upon the Property anything which would
cause to be increased the Landlord’s cost of
insurance or the costs of insurance of another
tenant of the Property against perils as to which
the Landlord or such other tenant has insured or
which shall cause any policy of insurance on the
Property to be subject to cancellation;

Compliance
With Law

(d) to comply at its own expense with all
governmental laws, regulations and requirements
pertaining to the occupation and use of the
Leased Premises, the condition of the Leasehold
Improvements, trade fixtures, furniture and
equipment installed by or on behalf of the Tenant
therein and the making by the Tenant of any
repairs, changes or improvements therein;

Environmental
Compliances

	 	(e) 	(i) to conduct and maintain
its business and
operations at the
Leased Premises so as
to comply in all
respects with common
law and with all
present and future
applicable federal,
provincial/state,
local, municipal,
governmental or
quasi-governmental
laws, by-laws, rules,
regulations, licenses,
orders, guidelines,
directives, permits,
decisions or
requirements,
concerning occupational
or public health and
safety or the
environment and any
order, injunction,
judgement, declaration,
notice or demand issued
thereunder,
(“Environmental Laws”).

(ii) not to permit or suffer any substance which is hazardous or is
prohibited, restricted, regulated or controlled under any
Environmental Law to be present at, on or in the Leased Premises,
unless it has received the prior written consent of the Landlord
which consent may be arbitrarily withheld.

Rules &
Regulations

(f) to observe and perform, and to cause its employees,
invitees and others over whom Tenant can be
reasonably expected to exercise control to observe
and perform, the Rules and Regulations contained in
Schedule “E” hereto, and such further and other
reasonable rules and regulations and amendments and
additions therein as may hereafter be made by the
Landlord and notified in writing to the Tenant,
except that no change or addition may be made that is
inconsistent with this Lease unless as may be
required by governmental regulation or unless the
Tenant consents thereto. The imposition of such
Rules and Regulations shall not create or imply any
obligation of the Landlord to enforce them or create
any liability of the Landlord for their
non-enforcement or otherwise.

7. ASSIGNMENT AND SUBLETTING

Restriction
On Transfer

(a) Except as expressly provided in this Section 7,
Tenant will not, either voluntarily or by operation
of law, assign or encumber this Lease or any interest
herein or sublet the Leased Premises or any part
thereof, or permit the use or occupancy of the
Premises by any party other than Tenant (any such
assignment, encumbrance, sublease or the like will
sometimes be referred to as a “Transfer”), without the prior written consent
of Landlord, which consent Landlord will not unreasonably withhold. In no
event may this Lease be assigned or the Premises sublet to any tenant or
occupant of the Building or to any entity that is in lease negotiations with
the Landlord. In addition, Tenant may not assign or sublet the Premises, or
any portion thereof, if it is in default under the terms and conditions of
this Lease, until such time as Tenant has “cured” the default to the
reasonable satisfaction of the Landlord.

					
	 	 	 	 	 
	Standard Lease Form
	 	5-1
	 	 
	Form FSGLI (894)	 	 	 	 
	3/27/2008	 	 	 	 

 

 

Corporate and
Partnership
Transfers

(b) For purposes of this Section 7, if Tenant is a
corporation, partnership or other entity, any
transfer, assignment, encumbrance or hypothecation
of twenty-five percent (25%) fifty percent (50%) or
more (individually or in the aggregate) of any
stock or other ownership interest in such entity,
and/or any transfer, assignment, hypothecation or
encumbrance of any controlling ownership or voting
interest in such entity, will be deemed a Transfer
and will be subject to all of the restrictions and
provisions contained in this Section 7.
Notwithstanding the foregoing, the immediately
preceding sentence will not apply to any transfers
of stock of Tenant if Tenant is a publicly-held
corporation and such stock is transferred publicly
over a recognized security exchange or
over-the-counter market.

Permitted
Controlled
Transfers

(c) Notwithstanding the provisions of this Section 7 to
the contrary, Tenant may assign this Lease or
sublet the Premises or any portion thereof
(“Permitted Transfer”), without Landlord’s consent
and without extending any sublease termination
option to Landlord, to any parent, subsidiary or
affiliate corporation which controls, is controlled
by or is under common control with Tenant, or to
any corporation resulting from a merger or
consolidation with Tenant, or to any person or
entity which acquires all the assets of Tenant’s
business as a going concern, provided that: (i) at
least twenty (20) days prior to such assignment or
sublease, Tenant delivers to Landlord the financial
statements and other financial and background
information of the assignee or sublessee described
in Subsection 7(d); (ii) if an assignment, the
assignee assumes, in full, the obligations of
Tenant under this Lease (or if a sublease, the
sublessee of a portion of the Premises or Term
assumes, in full, the obligations of Tenant with
respect to such portion); (iii) the financial net
worth of the assignee or sublessee as of the time
of the proposed assignment or sublease equals or
exceeds that of Tenant as of the date of execution
of this Lease; (iv) Tenant remains fully liable
under this Lease; and (v) the use of the Premises
under Section 8 remains unchanged.

Transfer
Notice

(d) If Tenant desires to effect a Transfer, then at
least thirty (30) days prior to the date when
Tenant desires the Transfer to be effective (the
“Transfer Date”), Tenant agrees to give Landlord a
notice (the “Transfer Notice”), stating the name,
address and business of the proposed assignee,
sublessee or other transferee (sometimes referred
to hereinafter as “Transferee”), reasonable
information (including references) concerning the
character, ownership, and financial condition of
the proposed Transferee, the Transfer Date, any
ownership or commercial relationship between Tenant
and the proposed Transferee, and the consideration
and all other material terms and conditions of the
proposed Transfer, all in such detail as Landlord
may reasonably require. If Landlord reasonably
requests additional detail, the Transfer Notice
will not be deemed to have been received until
Landlord receives such additional detail, and
Landlord may withhold consent to any Transfer until
such information is provided to it.

					
	 	 	 	 	 
	Standard Lease Form
	 	6-1
	 	 
	Form FSGLI (894)	 	 	 	 
	3/27/2008	 	 	 	 

 

 

Landlord’s Options

(e) Within thirty (30) days of Landlord’s receipt of any Transfer Notice, and any
additional information requested by Landlord concerning the proposed Transferee’s financial
responsibility, Landlord will elect to do one of the following:

(i) consent to the proposed Transfer;

(ii) refuse such consent, which refusal shall be on reasonable
grounds including, without limitation, those set forth in Subsection
7(f); or

(iii) terminate this Lease as to all or such portion of the Premises
which is proposed to be sublet or assigned and recapture all or such
portion of the Premises for reletting by Landlord.

Reasonable Disapproval

(f) Landlord and Tenant hereby acknowledge that
Landlord’s disapproval of any proposed Transfer
pursuant to Subsection 7(e) will be deemed reasonably
withheld if based upon any reasonable factor,
including, without limitation, any or all of the
following factors: (i) if the Building is less than
ninety percent (90%) occupied, if the net effective
rent payable by the Transferee (adjusted on a
rentable square foot basis) is less than the net
effective rent then being quoted by Landlord for new
leases in the Building for comparable size space for
a comparable period of time; (ii) the proposed
Transferee is a governmental entity; (iii) the
portion of the Premises to be sublet or assigned is
irregular in shape with inadequate means of ingress
and egress; (iv) the use of the Premises by the
Transferee (A) is not permitted by the use provisions
in Section 8 hereof, or (B) violates any exclusive
use granted by Landlord to another tenant in the
Building; (v) the Transfer would likely result in a
significant and inappropriate increase in the use of
the parking areas or Project Common Areas by the
Transferee’s employees or visitors, and/or
significantly increase the demand upon utilities and
services to be provided by Landlord to the Premises;
(vi) the Transferee does not have the financial
capability to fulfill the obligations imposed by the
Transfer and this Lease; or (vii) the Transferee is
not in Landlord’s reasonable opinion consistent with
Landlord’s desired tenant mix. In the event Landlord
withholds or conditions its consent and Tenant or any
proposed Transferee claims that Landlord has
unreasonably withheld or delayed its consent under
Subsection 7(f) or otherwise has breached or acted
unreasonably under this Section 7, their sole
remedies shall be a declaratory judgment and an
injunction for the relief sought without any monetary
damages, and Tenant hereby waives all other remedies
on its own behalf and, to the extent permitted under
all applicable laws, on behalf of the proposed
Transferee. In any such action, each party shall
bear its own attorneys’ fees. Tenant shall
indemnify, defend and hold harmless Landlord from any
and all liability, losses, claims, damages, costs,
expenses, causes of action and proceedings involving
any third party or parties (including without
limitation Tenant’s proposed subtenant or assignee)
who claim they were damaged by Landlord’s wrongful
withholding or conditioning of Landlord’s consent.

Additional Conditions

(g) A condition to Landlord’s consent to any Transfer of
this Lease will be the delivery to Landlord of a true
copy of the fully executed instrument of assignment,
sublease, transfer or hypothecation, and, in the case
of an assignment, the delivery to Landlord of an
agreement executed by the Transferee in form and
substance reasonably satisfactory to Landlord,
whereby the Transferee assumes and agrees to be bound
by all of the terms and provisions of this Lease and
to perform all of the obligations of Tenant
hereunder. As a condition for granting its consent
to any assignment or sublease, Landlord may require
that the assignee or sublessee remit directly to
Landlord on a monthly basis, all monies due to Tenant by said assignee or sublessee.

					
	 	 	 	 	 
	Standard Lease Form 

Form FSGLI (894) 

3/27/2008
	 	7-1
	 	 

 

 

 

As a condition to Landlord’s consent
to any sublease, such sublease must provide that it is subject and
subordinate to this Lease and to all mortgages; that Landlord may enforce
the provisions of the sublease, including collection of rent; that in the
event of termination of this Lease for any reason, including without
limitation a voluntary surrender by Tenant, or in the event of any reentry
or repossession of the Premises by Landlord, Landlord may, at its option,
either (i) terminate the sublease, or (ii) take over all of the right, title
and interest of Tenant, as sublessor, under such sublease, in which case
such sublessee will attorn to Landlord, but that nevertheless Landlord will
not (1) be liable for any previous act or omission of Tenant under such
sublease, (2) be subject to any defense or offset previously accrued in
favor of the sublessee against Tenant, or (3) be bound by any previous
modification of any sublease made without Landlord’s written consent, or by
any previous prepayment by sublessee of more than one month’s rent.

Excess Rent

(h) If Landlord consents to any Transfer, Tenant
agrees to pay to Landlord, as additional rent, one
hundred percent (100%) of all sums and other
consideration payable to and for the benefit of
Tenant by the Transferee on account of the
Transfer, as and when such sums and other
consideration are due and payable by the
Transferee to or for the benefit of Tenant (or, if
Landlord so requires, and without any release of
Tenant’s liability for the same, Tenant agrees to
instruct the Transferee to pay such sums and other
consideration directly to Landlord). If for any
proposed sublease Tenant receives rent or other
consideration, either initially or over the term
of the sublease, in excess of the rent fairly
allocable to the portion of the Premises which is
subleased based on square footage, Tenant agrees
to pay to Landlord as additional rent the entire
excess of each such payment of rent or other
consideration received by Tenant promptly after
its receipt. In calculating excess rent or other
consideration which may be payable to Landlord
under this Subsection 7(h), Tenant shall not be
entitled to deduct any brokerage commissions,
attorneys’ fees or any other amounts expended by
Tenant in connection with such Transfer.

Termination Rights

(i) If Tenant requests Landlord’s consent to any
assignment or subletting of all or a portion of
the Premises, Landlord will have the right, as
provided in Subsection 7(e), to terminate this
Lease as to all or such portion of the Premises
which is proposed to be sublet or assigned
effective as of the date Tenant proposes to sublet
or assign all or less than all of the Premises.
Landlord’s right to terminate this Lease as to
less than all of the Premises proposed to be
sublet or assigned will not terminate as to any
future additional subletting or assignment as a
result of Landlord’s consent to a subletting of
less than all of the Premises or Landlord’s
failure to exercise its termination right with
respect to any subletting or assignment. Landlord
will exercise such termination right, if at all,
by giving written notice to Tenant within thirty
(30) days of receipt by Landlord of the financial
responsibility information required by this
Section 7. Tenant understands and acknowledges
that the option, as provided in this Section 7, to
terminate this Lease as to all or such portion of
the Premises which is proposed to be sublet or
assigned rather than approve the subletting or
assignment of all or a portion of the Premises, is
a material inducement for Landlord’s agreeing to
lease the Premises to Tenant upon the terms and
conditions herein set forth. In the event of any
such termination with respect to less than all of
the Premises, the cost of segregating the
recaptured space from the balance of the Premises
will be paid by Tenant and Tenant’s future
monetary obligations under this Lease will be
reduced proportionately on a square footage basis
to correspond to the balance of the Premises which
Tenant continues to lease.

					
	 	 	 	 	 
	Standard Lease Form 

Form FSGLI (894) 

3/27/2008
	 	8-1
	 	 

 

 

 

No Release

(j) No Transfer will release Tenant of Tenant’s
obligations under this Lease or alter the primary
liability of Tenant to pay the rent and to perform
all other obligations to be performed by Tenant
hereunder. Landlord may require that any
Transferee remit directly to Landlord on a monthly
basis, all monies due Tenant by said Transferee.
However, the acceptance of rent by Landlord from
any other person will not be deemed to be a waiver
by Landlord of any provision hereof. Consent by
Landlord to one Transfer will not be deemed
consent to any subsequent Transfer. In the event
of default by any Transferee of Tenant or any
successor of Tenant in the performance of any of
the terms hereof, Landlord may proceed directly
against Tenant without the necessity of exhausting
remedies against such Transferee or successor.
Landlord may consent to subsequent assignments of
this Lease or sublettings or amendments or
modifications to this Lease with assignees of
Tenant, without notifying Tenant, or any successor
of Tenant, and without obtaining its or their
consent thereto and any such actions will not
relieve Tenant of liability under this Lease.

Administrative and Attorneys’ Fees

(k) If Tenant effects a Transfer or requests the
consent of Landlord to any Transfer (whether or
not such Transfer is consummated), then, upon
demand, Tenant agrees to pay Landlord a
non-refundable administrative fee of Two Hundred
Fifty Dollars ($250.00), plus any reasonable
attorneys’ and paralegal fees incurred by Landlord
in connection with such Transfer or request for
consent (whether attributable to Landlord’s
in-house attorneys or paralegals or otherwise).
Acceptance of the Two Hundred Fifty Dollar
($250.00) administrative fee and/or reimbursement
of Landlord’s attorneys’ and paralegal fees will
in no event obligate Landlord to consent to any
proposed Transfer.

8. REPAIR & DAMAGE

Landlord’s Repairs to Building & Property

(a) The Landlord covenants with the Tenant to keep
in a good and reasonable state of repair and
decoration:

(i) those portions of the Property consisting of the entrance,
lobbies, stairways, corridors, landscaped areas, parking areas, and
other facilities from time to time provided for use in common by the
Tenant and other tenants of the Building or Property, and the
exterior portions (including foundations and roofs) of all buildings
and structures from time to time forming part of the Property and
affecting its general appearance;

(ii) the Building (other than the Leased Premises and premises of
other tenants) including the systems for interior climate control,
the elevators and escalators (if any), entrances, lobbies, stairways
corridors and washrooms from time to time provided for use in common
by the Tenant and other tenants of the Building or Property and the
systems provided for use in common by the Tenant and other tenants of
the Building or Property and the systems as provided for bringing
utilities to the Leased Premises.

Landlord’s Repairs to the Leased Premises

(b) The Landlord covenants with the Tenant to
repair, so far as reasonably feasible, and as
expeditiously as reasonably feasible, defects
in standard demising walls or in structural
elements, exterior walls of the Building,
suspended ceiling, electrical and mechanical
installation standard to the Building
installed by the Landlord in the Leased
Premises (if and to the extent that such
defects are sufficient to impair the Tenant’s
use of the Leased Premises while using them
in a manner consistent with this Lease) and
“Insured Damage” (as herein defined). The
Landlord shall
in no event be required to make repairs to Leasehold Improvements made by
the Tenant, or by the Landlord on behalf of the Tenant or another tenant or
to make repairs to wear and tear within the Leased Premises.

					
	 	 	 	 	 
	Standard Lease Form 

Form FSGLI (894) 

3/27/2008
	 	9-1
	 	 

 

 

 

Tenant’s Repairs

(c) The Tenant covenants with the Landlord to repair, maintain and keep at the Tenant’s own costs, except
insofar as the obligation to repair rests upon the Landlord pursuant to this paragraph, the Leased
Premises, including Leasehold Improvements in good and substantial repair, reasonable wear and tear
excepted, provided that this obligation shall not extend to structural elements or to exterior glass
or to repairs which the Landlord would be required to make under this paragraph but for the exclusion
therefrom of defects not sufficient to impair the Tenant’s use of the Leased Premises while using
them in a manner consistent with this Lease. The Landlord may enter the Leased Premises at all
reasonable times and view the condition thereof and the Tenant covenants with the Landlord to repair,
maintain and keep the Leased Premises in good and substantial repair according to notice in writing,
reasonable wear and tear excepted. If the Tenant shall fail to repair as aforesaid after reasonable
notice to do so, the Landlord may effect the repairs and the Tenant shall pay the reasonable cost
thereof to the Landlord on demand. The Tenant covenants with the Landlord that the Tenant will at
the expiration of the Term or sooner termination thereof peaceably surrender the Leased Premises and
appurtenances in good and substantial repair and condition, reasonable wear and tear excepted. Above
standard office fixtures such as supplemental air conditioning, dishwashers, garbage disposals,
kitchen water heaters, are the sole responsibility of Tenant to maintain and replace.

Indemnification

(d) If any part of the Property becomes out of repair, damaged or destroyed through the negligence of, or
misuse by, the Tenant or its employees, agents, invitees or others under its control, the Tenant
shall pay the Landlord on demand the expense of repairs or replacements, including the Landlord’s
reasonable administration charge thereof, necessitated by such negligence or misuse.

Damage & Destruction

(e) It is agreed between the Landlord and the Tenant that:

(i) In the event of damage to the Property or to any part thereof, if
the damage is such that the Leased Premises or any substantial part
thereof is rendered not reasonably capable of use and occupancy by
the Tenant for the purposes of its business for any period of time in
excess of ten (10) days, then

	 	(ii)	 	(1) unless the damage was caused
by the fault or negligence of the Tenant or its employees,
agents, invitees or others under its control, from the date of
occurrence of the damage and until the Leased Premises are again
reasonably capable for use and occupancy as aforesaid, the Rent
payable pursuant to this Lease shall abate from time to time in
proportion to the part or parts of the Leased Premises not
reasonably capable of such use and occupancy, and

(2) unless this Lease is terminated as hereinafter provided,
the Landlord or the Tenant as the case may be (according to
the nature of the damage and their respective obligations to
repair as provided in sub-paragraphs (a), (b) and (c) of this
paragraph) shall repair such damage with all reasonable
diligence, but to the extent that any part of the Leased
Premises is not reasonably capable of such use and occupancy
by reason of damage which the Tenant is obligated to repair
hereunder, any abatement of Rent to
which the Tenant would otherwise be entitled hereunder shall
not extend later than the time by which, in the reasonable
opinion of the Landlord, repairs by the Tenant ought to have
been completed with reasonable diligence, and

					
	 	 	 	 	 
	Standard Lease Form 

Form FSGLI (894) 

3/27/2008
	 	10-1
	 	 

 

 

 

(iii) if the Leased Premises are substantially damaged or destroyed
by any cause and if in the reasonable opinion of the Landlord given
in writing within thirty (30) days of the occurrence the damage
cannot reasonably be repaired within one hundred eighty (180) days
after the occurrence thereof, then the Lease shall terminate, in
which event neither the Landlord nor the Tenant shall be bound to
repair as provided in sub-paragraphs (a), (b) and (c) of this
paragraph, and the Tenant shall instead deliver up possession of the
Leased Premises to the Landlord with reasonable expedition and Rent
shall be apportioned and paid to the date of the occurrence; and

(iv) if premises, whether of the Tenant, or other tenants of the
Property comprising in the aggregate half or more of the total number
of square feet of rentable office area in the Property on half or
more of the total number of square feet of rentable office area in
the Building (as determined by the Landlord) or portions of the
Property which affect access of services essential thereto, are
substantially damaged or destroyed by any cause and if in the
reasonable opinion of the Landlord the damage cannot reasonably be
repaired within one hundred eighty (180) days after the occurrence
thereof, then the Landlord may, by written notice to the Tenant given
within thirty (30) days after the occurrence of such damage or
destruction, terminate this Lease, in which event neither the
Landlord nor the Tenant shall be bound to repair as provided in
sub-paragraphs (a), (b) and (c) of this paragraph, and the Tenant
shall instead deliver up possession of the Leased Premises to the
Landlord with reasonable expedition but in any event within sixty
(60) days after delivery of such notice of termination, and Rent
shall be apportioned and paid to the date upon which possession is so
delivered up (but subject to any abatement to which the Tenant may be
entitled under sub-paragraph (e) (i) of this paragraph).

9. INSURANCE AND LIABILITY

Landlord’s Insurance

(a) The Landlord shall take out and keep in force during the Term insurance with respect to the Property except
for the “Leasehold Improvements” (as hereinafter defined) in the Leased Premises. The insurance to be
maintained by the Landlord shall be in respect of perils and to amounts and on terms and conditions which
from time to time are insurable at a reasonable premium and which are normally insured by reasonable
prudent buyers of properties similar to the Property, all as from time to time determined at reasonable
intervals by insurance advisors selected by the Landlord, and whose opinion shall be conclusive. Unless
and until the insurance advisors shall state that any such perils are not customarily insured against by
owners of properties similar to the Property, the perils to be insured against by the Landlord shall
include, without limitation, public liability, boilers and machinery, fire and extended perils and may
include, at the option of the Landlord, losses suffered by the Landlord in its capacity as Landlord through
business interruption. The insurance to be maintained by the Landlord shall contain a waiver by the
insurer of any rights of subrogation or indemnity or any other claim over which the insurer might otherwise
be entitled against the Tenant or the agents or employees of the Tenant.

					
	 	 	 	 	 
	Standard Lease Form 

Form FSGLI (894) 

3/27/2008
	 	11-1
	 	 

 

 

 

Tenant’s Insurance

(b) The Tenant shall take out and keep in force during the Term:

(i) comprehensive general public liability insurance all on an
occurrence basis with respect to the business carried on in or from
the Leased Premises and the Tenant’s use and occupancy of the Leased
Premises and of any other part of the Property, with coverage for any
one occurrence or claim of not less than Two Million Dollars
($2,000,000) or such other amount as the Landlord may reasonably
require upon not less than one (1) month notice at any time during
the Term, which insurance shall include the Landlord as an additional
insured and shall protect the Landlord in respect of claims by the
Tenant as if the Landlord were separately insured and worker’s
compensation insurance as required by law;

(ii) insurance in respect of fire and such other perils as are from
time to time in the usual extended coverage endorsement covering the
Leasehold Improvements, trade fixtures, and the furniture and
equipment in the Leased Premises for not less than 80% of the full
replacement cost thereof, and which insurance shall include the
Landlord as a loss payee as the Landlord’s interest may appear;

(iii) insurance against such other perils and in such amounts as the
Landlord may from time to time reasonably require upon not less than
ninety (90) days written notice, such requirement to be made on the
basis that the required insurance is customary at the time for
prudent tenants of properties similar to the Property.

All insurance required to be maintained by the Tenant shall be on terms and
with insurers satisfactory to the Landlord. Each policy shall contain a
waiver by the insurer of any rights of subrogation or indemnity or any other
claim over to which the insurer might otherwise be entitled against the
Landlord or the agents or employees of the Landlord, and shall also contain
an undertaking by the insurer that no material change adverse to the
Landlord or the Tenant will be made, and the policy will not lapse to be
canceled, except after not less than thirty (30) days’ written notice to the
Landlord of the intended change, lapse or cancellation. The Tenant shall
furnish to the Landlord, if and whenever requested by it, certificates or
other evidence acceptable to the Landlord as to the insurance from time to
time effected by the Tenant and if renewal or continuation in force,
together with evidence as to the method of determination of full replacement
cost of the Tenant’s Leasehold Improvements, trade fixtures, furniture and
equipment, and if the Landlord reasonably concludes that the full
replacement cost has been underestimated, the Tenant shall forthwith arrange
for any consequent increase in coverage required under sub-paragraph (b).
If the Tenant shall fail to take out, renew and keep in force such
insurance, or if the evidences submitted to the Landlord are unacceptable to
the Landlord (or no such evidences are submitted within a reasonable period
after request therefore by the Landlord), then the Landlord may give to the
Tenant written notice requiring compliance with this sub-paragraph and
specifying the respects in which the Tenant is not then in compliance with
this sub-paragraph. If the Tenant does not within forty-eight (48) hours
provide appropriate evidence of compliance with this sub-paragraph, the
Landlord may (but shall not be obligated to) obtain some or all of the
additional coverage or other insurance which the Tenant shall have failed to
obtain, without prejudice to any other rights of the Landlord under this
Lease or otherwise, and the Tenant shall pay all premiums and other
reasonable expenses incurred by the Landlord to the Landlord on demand.

					
	 	 	 	 	 
	Standard Lease Form 

Form FSGLI (894) 

3/27/2008
	 	12-1
	 	 

 

 

 

Limitation of Landlord’s Liability

(c) The Tenant agrees that the Landlord shall not be
liable for any bodily injury or death of, or loss
or damage to any property belonging to,
the Tenant or its employees, invitees or licensees or any other person in,
on or about the Property unless resulting from the actual willful misconduct
or gross negligence of the Landlord or its own employees. In no event shall
the Landlord be liable for any damage which is caused by steam, water, rain
or snow or other thing which may leak into, issue or flow from any part of
the Property or from the pipes or plumbing works, including the sprinkler
system (if any) therein or from any other place or for any damage caused by
or attributable to the condition or arrangement of any electric or other
wiring or of sprinkler heads (if any) or for any damage caused by anything
done or omitted by any other tenant. In no event, including without
limitation, any event, termination, dispute, alleged breach, occurrence or
circumstance arising out of or relating to this Agreement or the
transactions or relationships of the parties contemplated hereunder, shall
Landlord be liable for any incidental, special or consequential damages,
including, but not limited to, loss of use, loss of data, loss of business
or loss of profits, no matter what theory the claim is based on, including
contract, tort, strict liability or statute. This limitation of liability
shall survive the termination of this Lease.

Indemnity of Landlord

(d) Except with respect to claims or liabilities in
respect of any damage which is Insured Damage to the
extent of the cost of repairing such Insured Damage,
the Tenant agrees to indemnify and save harmless the
Landlord in respect of:

(i) all claims for bodily injury or death, property damage or other
loss or damage arising from the conduct of any work or any act or
omission of the Tenant or any assignee, sub-tenant, agent, employee,
contractor, invitee or licensee of the Tenant, and in respect of all
costs, expenses and liabilities incurred by the Landlord in
connection with or arising out of all such claims, including the
expenses of any action or proceeding pertaining thereto; and

(ii) any loss, cost, (including, without limitation, lawyers’ fees
and disbursements), expense or damage suffered by the Landlord
arising from any breach by the Tenant of any of its covenants and
obligations under this Lease.

Definition of “Insured Damaged”

(e) For purpose of this Lease, “Insured Damage” means
that part of any damage occurring to the Property
of which the entire cost of repair (or the entire
cost of repair other than a deductible amount
properly collectable by the Landlord as part of the
Additional Rent) is actually recovered by the
Landlord under a policy or policies of insurance
from time to time effected by the Landlord pursuant
to sub-paragraph (a). Where an applicable policy
of insurance contains an exclusion for damages
recoverable from a third party, claims as to which
the exclusion applies shall be considered to
constitute Insured Damage only if the Landlord
successfully recovers from the third party.

10. EVENTS OF DEFAULT AND REMEDIES

Events of Default & Remedies

(a) In the event of the happening of any one of the following events:

(i) the Tenant shall have failed to pay an installment of Basic Rent
or of Additional Rent or any other amount payable hereunder when due,
and such failure shall be continuing for a period of more than ten
(10) days after the date such installment or amount was due;

					
	 	 	 	 	 
	Standard Lease Form 

Form FSGLI (894) 

3/27/2008
	 	13-1
	 	 

 

 

 

(ii) there shall be a default of or with any condition, covenant,
agreement or other obligation on the part of the Tenant to be kept,
observed or performed hereunder (other than a condition, covenant,
agreement or other obligation to pay Basic Rent, Additional Rent or
any other amount of money) and such default shall be continuing for a
period of more than fifteen (15) thirty (30) days after written
notice by the Landlord to the Tenant specifying the default and
requiring that it discontinue;

(iii) if any policy of insurance upon the Property or any part
thereof from time to time effected by the Landlord shall be canceled
or about to be canceled by the insurer by reason of the use or
occupation of the Leased Premises by the Tenant or any assignee,
sub-tenant or licensee of the Tenant or anyone permitted by the
Tenant to be upon the Leased Premises and the Tenant after receipt of
notice in writing from the Landlord shall have failed to take such
immediate steps in respect of such use or occupation as shall enable
the Landlord to reinstate or avoid cancellation (as the case may be)
of such policy of insurance;

(iv) the Leased Premises shall, without the prior written consent of
the Landlord, be used by any other persons than the Tenant or its
permitted assigns or sub-tenants or for any purpose other than that
for which they were leased or occupied or by any persons whose
occupancy is prohibited by this Lease;

(v) the Leased Premises shall be vacated or abandoned, or remain
unoccupied without the prior written consent of the Landlord for
fifteen (15) consecutive days or more while capable of being
occupied;

(vi) the balance of the Term of this Lease or any of the goods and
chattels of the Tenant located in Leased Premises, shall at anytime
be seized in execution of attachment, or

(vii) the Tenant shall make any assignment for the benefit of
creditors or become bankrupt or insolvent or take the benefit of any
statute for bankrupt or insolvent debtors or, if a corporation, shall
take any steps or suffer any order to be made for its winding-up or
other termination of its corporate existence; or a trustee, receiver
or receiver-manager or agent or other like person shall be appointed
of any of the assets of the Tenant.

Payment of Rent, etc. on Termination

(b) The Landlord shall have the following
rights and remedies all of which are
cumulative and not alternative and not to
the exclusion of any other or additional
rights and remedies in law or equity
available to the Landlord by statute or
otherwise:

(i) to remedy or attempt to remedy any default of the Tenant, and in
doing so to make any payments due or alleged to be due by the Tenant
to third parties and to enter upon the Leased Premises to do any work
or other thing therein, and in such event all reasonable expenses of
the Landlord in remedying or attempting to remedy such default shall
be payable by the Tenant to the Landlord on demand;

(ii) with respect to unpaid overdue rent, to the payment by the
Tenant of the Rent and of interest (which said interest shall be
deemed included herein in the term “Rent”) thereon at a rate equal
to ten percent (10%) of the total unpaid amount each month until paid
in full;

					
	 	 	 	 	 
	Standard Lease Form

Form FSGLI (894)

3/27/2008
	 	14-1
	 	 

 

 

(iii) to terminate this Lease forthwith. In the event that Landlord
shall elect to so terminate this Lease then Landlord may recover from
Tenant:

	 	(1)	 	the worth at the
time of award of any unpaid rent which had been earned
at the time of such termination; plus

	 
	 	(2)	 	the worth at the
time of award of the amount by which the unpaid rent
which would have been earned after termination until the
time of award exceeds the amount of such rental loss
that Tenant proves could have been reasonably avoided;
plus

	 
	 	(3)	 	the worth at the
time of award of the amount by which the unpaid rent for
the balance of the term after the time of award exceeds
the amount of such rental loss that Tenant proves could
be reasonably avoided; plus

	 
	 	(4)	 	the worth at the
time of award of any abated rent in connection with this
Lease or any subsequent extension of the Lease; plus

	 
	 	(5)	 	any other amount
necessary to compensate Landlord for all the detriment
proximately caused by Tenant’s failure to perform the
Tenant obligations under this Lease or which in the
ordinary course of things would be likely to result
therefrom. As used in sub-paragraphs 10(b)(iii)(1) and
(2) above, the “worth at the time of award” is computed
by allowing interest at the maximum rate permitted by
law per annum. As used in sub-paragraph 10(b)(iii)(3)
above, the “worth at the time of award” is computed by
discounting such amount at the discount rate of the
Federal Reserve Bank of San Francisco at the time of
award plus one percent (1%).

(iv) to enter the Leased Premises as agent of the Tenant and as such
agent to re-let them and to receive the rent therefor and as the
agent of the Tenant to take possession of any furniture or other
property thereon and upon giving ten (10) days’ written notice to the
Tenant to store the same at the expenses and risk of the Tenant or to
sell or otherwise dispose of the same at public or private sale
without further notice and to apply the proceeds thereof and any rent
derived from re-letting the Leased Premises upon account of the Rent
due and to become due under this Lease and the Tenant shall be liable
to the Landlord for the deficiency if any.

(v) to maintain Tenant’s rights to possession and continue said Lease
in full force and effect, whether or not Tenant shall have abandoned
the Leased Premises. In such event, Landlord shall be entitled to
enforce all of its rights and remedies under this Lease, including
the right to recover Rent as it becomes due under the terms of the
Lease.

					
	 	 	 	 	 
	Standard Lease Form

Form FSGLI (894)

3/27/2008
	 	15-1
	 	 

 

 

Tenant to Pay On Demand

(c) The Tenant shall pay to the Landlord on demand all costs and expenses, including
actual lawyers’ fees and costs incurred by the Landlord in enforcing any of the obligations of
the Tenant under this Lease. Such costs shall include but not be limited to a fee of $100.00
for service of pay or quit notice and a fee of $50.00 for NSF checks in addition to all late
fees associated with payments.

					
	 	 	 	 	 
	Standard Lease Form

Form FSGLI (894)

3/27/2008
	 	16-1
	 	 

 

 

ADDITIONAL PROVISIONS

Relocation of Leased Premises

11. INTENTIONALLY OMITTED.

Subordination & Attornment

12. This Lease and all rights of the Tenant hereunder are subject and subordinate to
all underlying leases and charges, or mortgages now or hereafter existing (including
charges, and mortgages by way of debenture, note, bond, deeds of trust and mortgage
and all instruments supplemental thereto) which may now or hereafter affect the
Property or any part thereof and to all renewal, modifications, considerations,
replacements and extensions thereof provided the lessor, chargee, mortgagee, or
trustee agrees to accept this Lease if not in default; and in recognition of the
foregoing the Tenant agrees that it will, whenever requested, attorn to such lessor,
chargee, mortgagee as a tenant upon all the terms of this Lease. The Tenant agrees
to execute promptly whenever requested by the Landlord or by the holder of any such
lease, charge, or mortgage an instrument of subordination or attornment, as the case
may be as may be required of it.

Certificates

13. The Tenant agrees that it shall promptly whenever requested by the Landlord from
time to time execute and deliver to the Landlord, and if required by the Landlord,
to any lessor, chargee or mortgagee (including any trustee) or other person
designated by the Landlord, an acknowledgement in writing as to the then status of
this Lease, including as to whether it is in full force and effect, is modified or
unmodified, confirming the Basic Rent and Additional Rent payable hereunder and the
state of accounts between Landlord and the Tenant, the existence or non-existence of
defaults, and any other matters pertaining to this Lease as to which the Landlord
shall request an acknowledgement.

Tenant’s Compliances
With Gov’t Ordinances,
Regulations and Laws

14. Tenant acknowledges that Landlord makes no express or implied representations or
warranties of any kind regarding the fitness or appropriateness of the Leased
Premises for Tenant’s proposed use. Tenant takes the Leased Premises in an “as is”
condition with regard to all applicable zoning, parking, use and any other relevant
ordinances, regulations or laws, and Tenant is solely responsible for investigating
and determining whether its proposed use is appropriate for the Leased Premises.
Tenant shall be responsible for using its best efforts to secure all necessary
permits, variances, approvals and any other governmental consents required to allow
it to occupy the Leased Premises and carry on its business as intended, including
but not limited to, building and conditional use permits. In the event that Tenant
has not commenced the process to secure all necessary permits within thirty (30)
days after execution of this Lease this shall constitute an event of “default” and
Landlord shall have the right to terminate this Lease, subject to Landlord’s
providing five (5) days notice to Tenant and Tenant’s ten (10) day right to cure
such default. Tenant’s failure to secure such permits or other governmental
consents shall not excuse its obligation to pay rent to Landlord hereunder as set
forth in any section regarding rent commencement or rental payments and shall not
constitute an act of “force majeure” excusing Tenant’s performance of any and all of
its obligations under this Lease. Tenant’s failure to pay rent on any due date
shall constitute a separate event of “default” under this Lease.

					
	 	 	 	 	 
	Standard Lease Form

Form FSGLI (894)

3/27/2008
	 	17-1
	 	 

 

 

Inspection of
& Access to
Leased Premises

15.
The Landlord shall be permitted at any time, and from time to time, to enter and
to have its authorized agents, employees and contractors enter the Leased Premises
for the purposes of inspection, window cleaning, maintenance,
providing janitor service, making repairs, alterations or improvements to the Leased
Premises or the Property, or to have access to utilities and services (including all
ducts and access panels (if any), which the Tenant agrees not to obstruct) and the
Tenant shall provide free and unhampered access for the purpose, and shall not be
entitled to compensation for any inconvenience, nuisance or discomfort caused
thereby. The Landlord and its authorized agents and employees shall be permitted
entry to the Leased Premises for the purpose of exhibiting them to prospective
tenants. The Landlord in exercising its rights under this paragraph shall do so to
the extent reasonably necessary so as to minimize interference with the Tenant’s use
and enjoyment of the Leased Premises provided that in an emergency the Landlord or
persons authorized by it may enter the Leased Premises without regard to minimizing
interference.

Delay

16. Except as herein otherwise expressly provided, if and whenever and to the extent that
either the Landlord or the Tenant shall be prevented, delayed or restricted in the fulfillment
of any obligation hereunder in respect of the supply or provision of any service or utility,
the making of any repair, the doing of any work or any other thing (other than the payment of
monies required to be paid by the Tenant to the Landlord hereunder) by reason of:

(a) strikes or work stoppages;

(b) being unable to obtain any material, service, utility or labor required
to fulfill such obligation;

(c) any statute, law or regulation of, or inability to obtain any permission
from any government authority having lawful jurisdiction preventing,
delaying or restricting such fulfillment;

(d) other unavoidable occurrence.

The time for fulfillment of such obligation shall be extended during the period
in which such circumstance operates to prevent, delay or restrict the fulfillment
thereof, and the other party to this Lease shall not be entitled to compensation for
any inconvenience, nuisance or discomfort thereby occasion; provided that
nevertheless the Landlord will use its best efforts to maintain services essential
to the use and enjoyment of the Leased Premises and provided further that if the
Landlord shall be prevented, delayed or restricted in the fulfillment of any such
lease of any such obligation hereunder by reason of any of the circumstances set out
in sub-paragraph (c) of this paragraph 16 and to fulfill such obligation could not,
in the reasonable opinion of the Landlord, be completed without substantial
additions to or renovations of the Property, the Landlord may on sixty (60) days’
written notice to the Tenant terminate this Lease.

Waiver

17. If either the Landlord or the Tenant shall overlook, excuse, condone or suffer any
default, breach, non-observance, improper compliance or non-compliance by the other of any
obligation hereunder, this shall not operate as a waiver of such obligation in respect of any
continuing or subsequent default, breach, or non-observance, and no such waiver shall be
implied but shall only be effective if expressed in writing.

Sale, Redevelopment,
Demolition &
Renovation

18.

(a) The term “Landlord” as used in this Lease, means only the owner for the
time being of the Property, so that in the event of any sale or sales or
transfer or transfers of the Property, or the making of any lease or leases
thereof, or the sale or sales or the transfer or transfers or the assignment
or assignments of any such lease or leases, previous landlords shall be and
hereby are relieved of all covenants and obligations of Landlord hereunder.
It shall be deemed and construed without further agreement
between the parties, or their successors in interest, or between the parties
and the transferee or acquirer, at any such sale, transfer or assignment, or
lessee on the making of any such lease, that the transferee, acquirer or
lessee has assumed and agreed to carry out any and all of the covenants and
obligations of Landlord hereunder to Landlord’s exoneration, and Tenant
shall thereafter be bound to and shall attorn to such transferee, acquirer
or lessee, as the case may be, as Landlord under this Lease;

					
	 	 	 	 	 
	Standard Lease Form

Form FSGLI (894)

3/27/2008
	 	18-1
	 	 

 

 

(b) Notwithstanding anything contained in this Lease to the contrary, in the
event the Landlord intends to demolish, redevelop, or to renovate
substantially all the Building, then the Landlord, upon giving the Tenant
one hundred eighty (180) days’ written notice, shall have the right to
terminate this Lease and this Lease shall thereupon expire on the expiration
of one hundred eighty (180) days from the date of the giving of such notice
without compensation of any kind to the Tenant.

Construction

19. Tenant is aware there may be construction occurring in the vicinity of the
Leased Premises. Any such construction does not alter the Lease in any way or
relieve Tenant of any responsibility under the Lease.

Public Taking

20. The Landlord and Tenant shall co-operate, each
with the other, in respect of any Public Taking
of the Leased Premises or any part thereof so
that the Tenant may receive the maximum award to
which it is entitled in law for relocation costs
and business interruption and so that the
Landlord may receive the maximum award for all
other compensation arising from or relating to
such Public Taking (including all compensation
for the value of the Tenant’s leasehold interest
subject to the Public Taking) which shall be the
property of the Landlord, and the Tenant’s rights
to such compensation are hereby assigned to the
Landlord. If the whole or any part of the Leased
Premises is Publicly Taken, as between the
parties hereto, their respective rights and
obligations under this Lease shall continue until
the day on which the Public Taking authority
takes possession therefore. If the whole or any
part of the Leased Premises is Publicly Taken,
the Landlord shall have the option, to be
exercised by written notice to the Tenant, to
terminate this Lease and such termination shall
be effective on the day the Public Taking
authority takes possession of the whole or the
portion of the Property Publicly Taken. Rent and
all other payments shall be adjusted as of the
date of such termination and the Tenant shall, on
the date of such Public Taking, vacate the Leased
Premises and surrender the same to the Landlord,
with the Landlord having the right to re-enter
and re-possess the Lease Premises discharged of
this Lease and to remove all persons therefrom.
In this paragraph, the words “Public Taking”
shall include expropriation and condemnation and
shall include a sale by the Landlord to any
authority with powers of expropriation,
condemnation or taking, in lieu of or under
threat of expropriation or taking and “Publicly
Taken” shall have a corresponding meaning.

Registration of
Lease

21. The Tenant agrees with the Landlord not to
register this Lease in any recording office and
not to register notice of this Lease in any form
without the prior written consent of the
Landlord. If such consent is provided such
notice of Lease or caveat shall be in such form
as the Landlord shall have approved and upon
payment of the Landlord’s reasonable fee for same
and all applicable transfer or recording taxes or
charges. The Tenant shall remove and discharge
at Tenant’s expense registration of such a notice
or caveat at the expiration or earlier
termination of the Term, and in the event of
Tenant’s failure to so remove or discharge such
notice or caveat after ten (10) days’ written
notice by Landlord to Tenant, the Landlord may in
the name and on behalf of the Tenant execute a
discharge of such a notice or caveat in order to
remove and discharge such notice of caveat and
for the purpose thereof the Tenant hereby
irrevocably constitutes and appoints any officer
of the Landlord the true and lawful attorney of
the Tenant.

					
	 	 	 	 	 
	Standard Lease Form

Form FSGLI (894)

3/27/2008
	 	19-1
	 	 

 

 

Entire Lease
Agreement

22. The Tenant acknowledges that there are no covenants, representation, warranties,
agreements or conditions express or implied, collateral, or otherwise forming part
of or in any way affecting or relating to this Lease save as expressly set out in
this Lease and Schedules attached hereto and that this Lease and such Schedules
constitute the entire agreement between the Landlord and the Tenant and may not be
modified except as herein explicitly provided or except by agreement in writing
executed by the Landlord and the Tenant.

Notices

23. Any notice, advice, document or writing required or contemplated by any provision
hereof shall be given in writing and if to the Landlord, either delivered personally to an
officer of the Landlord or mailed by prepaid, certified/return receipt requested mail
addressed to the Landlord at the said local office address of the Landlord shown above, and if
to the Tenant, either delivered personally to the Tenant (or to an officer of the Tenant, if a
corporation) or mailed by prepaid mail addressed to the Tenant at the Leased Premises, or if
an address of the Tenant is shown in the description of the Tenant above, to such address.
Every such notice, advice, document or writing shall be deemed to have been given when
delivered personally, or if mailed as aforesaid, upon the fifth day after being mailed. The
Landlord may from time to time by notice in writing to the Tenant designate another address as
the address to which notices are to be mailed to it, or specify with greater particularity the
address and persons to which such notices are to be mailed and may require that copies of
notices be sent to an agent designated by it. The Tenant may, if an address of the Tenant is
shown in the description of the Tenant above, from time to time by notice in writing to the
Landlord, designate another address as the address to which notices are to be mailed to it, or
specify with greater particularity the address to which such notices are to be mailed.

Interpretation

24. In this Agreement “herein,” “hereof,” “hereby,” “hereunder,” “hereto,”
“hereinafter” and similar expressions refer to this Lease and not to any particular
paragraph, clause or other portion thereof, unless there is something in the subject
matter or context inconsistent therewith; and the parties agree that all of the
provisions of this Lease are to be construed as covenants and agreements as though
words importing such covenants and agreements were used in each separate paragraph
hereof, and that should any provision or provisions of this Lease be illegal or not
enforceable it or they shall be considered separate and severable from the Lease and
its remaining provisions shall remain in force and be binding upon the parties
hereto as though the said provision or provisions had never been included, and
further, that the captions appearing for the provisions of this Lease have been
inserted as a matter of convenience and for reference only and in no way define,
limit or enlarge the scope or meaning of this Lease or any provision hereof.

Extent of
Lease Obligation

25. This Agreement and everything herein contained shall inure to the benefit of and
be binding upon the respective heirs, executors, administrators, successors, assigns
and other legal representatives, as the case may be, of each and every of the
parties hereto, subject to the granting of consent by the Landlord to any assignment
or sublease, and every reference herein to any party hereto shall include the heirs,
executors, administrators, successors, assigns and other legal representatives of
such party, and where there is more than one tenant or there is a male or female
party the provision hereof shall be read with all grammatical changes thereby
rendered necessary and all covenants shall be deemed joint and several.

					
	 	 	 	 	 
	Standard Lease Form

Form FSGLI (894)

3/27/2008
	 	20-1
	 	 

 

 

Prior Use &
Occupancy Prior
To Term

26. If the Tenant shall for any reason use or occupy the Leased Premises in any way
prior to the commencement of the Term without there being an existing
lease between the Landlord and Tenant under which the Tenant has occupied the Leased
Premises, then during such prior use or occupancy, the Tenant shall be a Tenant of
the Landlord and shall be subject to the same covenants and agreements in this Lease
mutatis mutandis.

Alterations, Additions, and
Improvements

27. Tenant will not make or allow to be made any alterations, additions, or
improvements in or to the Leased Premises without the written consent of Landlord
before performance: such consent will not be unreasonably withheld, but Landlord
may impose, as a condition of such consent such requirements as Landlord in its sole
discretion may deem reasonable or desirable including, without limiting the
generality of foregoing, requirements as to the manner in which, the time or times
at which and the contractor by whom such work shall be done. Such alterations,
additions, or improvements when made to the Leased Premises by Tenant shall be
surrendered to Landlord and become the property of Landlord upon termination in any
manner of this Lease, but this clause shall not apply to moveable non-attached
fixtures or furniture of Tenant. Provided however, if prior to termination of this
Lease, or within fifteen (15) days thereafter, Landlord may send written notice to
Tenant that Tenant shall promptly remove such alterations, additions, or
improvements, which were placed in or on the Leased Premises by Tenant and which are
designated in said notice and shall repair any damage occasioned by such and the
removal and in default thereof Landlord may effect said removals and repairs at
Tenant’s expense. All work with respect to alterations, additions, and improvements
must be done in good and workmanlike manner and diligently prosecuted to completion
to the end that the improvements on the Leased Premises shall at all times be a
complete unit except during the period of work. Any such alterations, additions,
and improvements shall be performed and done strictly in accordance with the laws
and ordinances relating thereto, and with the requirements of all carriers of
insurance on the Leased Premises and the Board of Underwriters, Fire Rating Bureau,
or similar organization. Tenant shall obtain at its sole cost and expense all
required licenses and permits. In performing the work of any such alterations,
additions or improvements, Tenant shall have the work performed in such a manner so
as not to obstruct the access to the Building of any other tenant. Before
commencing any such work or construction in or about the Leased Premises, Tenant
shall notify Landlord in writing of the expected date of commencement thereof.
Landlord shall have the right at any time and from time to time to post and maintain
on the Leased Premises such notices as Landlord deems necessary to protect the
Leased Premises and Landlord from the liens of mechanics, laborers, materialmen,
suppliers or vendors. If any mechanic lien is filed against the Leased Premises or
the real estate of which the Leased Premises form a part, which lien concerns the
Tenant and/or the Leased Premises, Tenant shall cause same to be discharged within
ten (10) days after the lien is filed by Tenant paying or bonding over said lien.

Schedules

28. The provisions of the following Schedules attached hereto shall form part of
this Lease as if the same were embodied herein:

Schedule “A” — Legal Description of Lands

Schedule “B” — Outline of Leased Premises

Schedule “C” — Taxes payable by Landlord and Tenant

Schedule “D” — Services and Costs

Schedule “E” — Rules and Regulations

Schedule “F” — Leasehold Improvements

Schedule “G”— Basic Rent

Schedule “H” — Tenant Improvements

Schedule “I” — Parking

Schedule “J”— Guaranty

Schedule “K” — Tenant Information Sheet

Schedule “L”  — Signage Agreement

Schedule “M”  — License for Antenna Site

Schedule “N”  — Addendum to Lease

					
	 	 	 	 	 
	Standard Lease Form

Form FSGLI (894)

3/27/2008
	 	21-1
	 	 

 

 

Brokers

29. Tenant represents and warrants to Landlord that Tenant has not dealt with any
real estate broker or agent in connection with this Lease Agreement or its
negotiation except Colton Capital Corporation and CB Richard Ellis. Tenant shall
indemnify, defend, protect and hold Landlord harmless from and against any and all
costs, expenses, claims and liabilities (including costs of suit and reasonable
attorneys’ fees) for any compensation, commission or fees claimed by any other real
estate broker or agent in connection with this Lease or its negotiation by reason of
any act of Tenant.

IN WITNESS WHEREOF the parties hereto have executed this Agreement.

	 	 	 
	LANDLORD:

	 	TENANT:
	 
	 	 
	Cambric Partners,

	 	ImaRx Therapeutics, Inc.,
	an Arizona general partnership

	 	a Delaware corporation
	By: Colton Properties, Inc., 

a California corporation
	 	 
	Its: General Partner
	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Jon W. McClintock, Chief Financial Officer	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Print Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Title:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	Date:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 

					
	 	 	 	 	 
	Standard Lease Form

Form FSGLI (894)

3/27/2008
	 	22-1
	 	 

 

 

SCHEDULE “A”

LEGAL DESCRIPTION OF PROPERTY

The land situated in the County of Pima, State of Arizona and legally described as follows:

Parcel I:

Block 6 of Colonia Del Rio, as shown by subdivision map recorded in Book 39 of Maps at Page 71,
records of Pima County, Arizona;

Except that portion conveyed to Pima County, Arizona, a Body Politic, by Deed recorded in Docket
11109 at Page 1570.

And further Excepting from above parcel the following described property:

A portion of Block 6 of Colonia del Rio Subdivision of record in Book 39 of Maps and Plats and Page
71, records of Pima County, Arizona, more particularly described as follows;

Commencing at the North corner of said Block 6, said corner being on a curve concave to the
Northwest to which a radial line bears South 49 degrees 15’41” East;

Thence Southwesterly, along the Northwesterly line of said Block 6 and the arc of said curve having
a central angle of 00 degrees 43’41”, a radius of 308.30 feet, and an arc distance of 3.92 feet to
the POINT OF BEGINNING;

Thence continuing Southwesterly along said Northwesterly line and the arc of said curve having a
central angle of 09 degrees 11’35”, a radius of 308.30 feet, and an arc distance of 49.47 feet;

Thence along the prolongation of the radial to said curve, South 39 degrees 20’25” East, 16.00 feet
to a concentric curve;

Thence Northerly along the arc of said concentric curve having a central angle of 09 degrees
17’39”, a radius of 324.30 feet, and an arc length of 52.61 feet to a curve concave to the
Northeast, to which point a redial line bears South 38 degrees 54’49” West;

Thence Northwesterly along the arc of said curve having a central angle of 01 degrees 01’50”, a
radius of 890.00 feet, and an arc distance of 16.01 feet to the POINT OF BEGINNING.

Basis of bearing is the North line of the Northwest quarter of Section 19, Township 13 South, Range
14 East, Gila and Salt River Meridian, said bearing is North 88 degrees 31’57” East.

Parcel II:

Easements and other rights in that Agreement for Construction, Maintenance and Use of Joint Drive
and Parking, recorded in Docket 7404 at Page 1174 and amended in Docket 8202 at Page 1785.

					
	 	 	 	 	 
	Standard Lease Form

Form FSGLI (894)

3/27/2008
	 	A-1
	 	 

 

 

SCHEDULE “B”

PLAN OF LEASED PREMISES

1730 East River Road,

Suite 200

Tucson, AZ 85718

					
	 	 	 	 	 
	Standard Lease Form

Form FSGLI (894)

3/27/2008
	 	B-1
	 	 

 

 

 

SCHEDULE “C”

TAXES PAYABLE BY LANDLORD AND TENANT

1.

Tenant’s Taxes

(a) The Tenant covenants to pay all Tenant’s Taxes, as and when the same
becomes due and payable. Where any Tenant’s Taxes are payable by the
Landlord to the relevant taxing authorities, the Tenant covenants to pay the
amount thereof to the Landlord.

(b) The Tenant covenants to pay the Landlord the Tenant’s Proportionate
Share of the excess of the amount of the Landlord’s Taxes in each Fiscal
Period over the Landlord’s Taxes in the “Base Year” (as hereinafter
defined).

(c) The Tenant covenants to pay to the Landlord the Tenant’s Proportionate
Share of the costs and expenses (including legal and other professional fees
and interest and penalties on deferred payments) incurred in good faith by
the Landlord in contesting, resisting or appealing any of the Taxes.

Landlord’s Taxes

(d) The Landlord covenants to pay all Landlord’s Taxes subject to the
account of Landlord’s Taxes required to be made by the Tenant elsewhere in
this Lease. The Landlord may appeal any official assessment or the amount
of any Taxes or other taxes based on such assessment and relating to the
Property. In connection with any such appeal, the Landlord may defer
payment of any Taxes or other taxes, as the case may be, payable by it to
the extent permitted by law, and the Tenant shall co-operate with the
Landlord and provide the Landlord with all relevant information reasonably
required by the Landlord in connection with any such appeal.

Separate Allocation

(e) In the event that the Landlord is unable to obtain from the taxing
authorities any separate allocation of Landlord’s Taxes, Tenant’s Taxes or
assessment as required by the Landlord to make calculations of Additional
Rent under this Lease, such allocation shall be made by the Landlord acting
reasonably and shall be conclusive.

Information

(f) Whenever requested by the Landlord, the Tenant shall deliver to it
receipts for payment of all the Tenant’s Taxes and furnish such other
information in connection therewith as the Landlord may reasonably require.

Tax Adjustment

(g) If the Building has not been taxed as a completed and fully occupied
building for the Fiscal Period, the Landlord’s Taxes will be determined by
the Landlord as if the Building had been taxed as a completed and fully
occupied building for any such Fiscal Period.

Definition

2. In this Lease:

(a) “Landlord Taxes” shall mean the aggregate of all Taxes attributed to the
Property, the Rent or the Landlord in respect thereof and including, without
limitation, any amounts imposed, assessed, levied or charged in substitution
for or in lieu of any such Taxes, but excluding such taxes as capital gains
taxes, corporate income, profit or excess profit taxes to the extent such
taxes are not levied in lieu of any of the foregoing against the Property or
the Landlord in respect thereof.

					
	 	 	 	 	 
	Standard Lease Form
	 	C-1
	 	 
	Form FSGLI (894)	 	 	 	 
	3/27/2008	 	 	 	 

 

 

 

(b) “Taxes” shall mean all taxes, rates, duties, levies, fees, charges, local
improvement rates, capital taxes, rental taxes and assessments whatsoever including
fees, rents, and levies for air rights and encroachments on or over municipal
property imposed, assessed, levied or charged by any school, municipal, regional,
state, provincial, federal, parliamentary, or other body, corporation, authority,
agency or commission provided that any such local improvement rates, assessed and
paid prior to or in the Base Year shall be excluded from the Base Year and any year
during the Term and provided further that “Taxes” shall not include any special
utility, levies, fees or charges imposed, assessed, levied or charged which are
directly associated with initial construction of the Property.

(c) “Tenant’s Taxes” shall mean the aggregate of:

(i) all Taxes (whether imposed upon the Landlord or the Tenant)
attributable to the personal property, trade fixtures, business,
income, occupancy, or sales of the Tenant or any other occupant of
the Leased Premises, and to any Leasehold Improvements or fixtures
installed by or on behalf of the Tenant within the Leased Premises,
and to the use by the Tenant of any of the Property; and

(ii) the amount by which Taxes (whether imposed upon the Landlord or
the Tenant) are increased above the Taxes which would have otherwise
been payable as a result of the Leased Premises or the Tenant or any
other occupant of the Leased Premises being taxed or assessed in
support of separate schools.

(d) “Tenant’s Proportionate Share” shall mean 4.80% subject to adjustment as
determined solely by the Landlord and notified to the Tenant in writing for physical
increases or decreases in the total rentable area of the Property provided that
total rentable area of the Property and the rentable area of the Leased Premises
shall exclude areas designated (whether or not rented) for parking and for storage.

(e) “Base Year” as used in this schedule shall mean calendar year 2008.

					
	 	 	 	 	 
	Standard Lease Form
	 	C-2
	 	 
	Form FSGLI (894)	 	 	 	 
	3/27/2008	 	 	 	 

 

 

 

SCHEDULE “D”

SERVICES AND COSTS

1. The Landlord covenants with the Tenant:

Interior Climate
Control

(a) To maintain in the Leased Premises conditions of
reasonable temperature and comfort in accordance
with good standards applicable to normal
occupancy of premises for office purposes
subject to governmental regulations during hours
to be determined by the Landlord but to be at
least the hours from 7:00 a.m. to 6:00 p.m. from
Monday to Friday (with the exception of
Saturdays, Sundays and holidays), such
conditions to be maintained by means of a system
for heating and cooling, filtering and
circulating air; the Landlord shall have no
responsibility for any inadequacy of performance
of the said system if the occupancy of the
Leased Premises or the electrical power or other
energy consumed on the Leased Premises for all
purposes exceeds reasonable amounts as
determined by the Landlord or the Tenant
installs partitions or other installations in
locations which interfere with the proper
operations of the system of interior climate
control or if the window covering on exterior
windows is not kept fully closed;

Janitor Service

(b) To provide janitor and cleaning services to the
Leased Premises and to common areas of the
Building consisting of reasonable services in
accordance with the standards of similar office
buildings;

Elevators,
Lobbies, Etc.

(c) To keep available the following facilities for
use by the Tenant and its employees and invitees
in common with other persons entitled thereto:

(i) passengers and freight elevator service to each floor upon which
the Leased Premises are located provided such service is installed in
the Building and provided that the Landlord may prescribe the hours
during which and the procedures under which freight elevator service
shall be available and may limit the number of elevators providing
service outside normal business hours;

(ii) moving shall be after hours Monday-Friday or Weekends only. In
the event Tenant does not abide by such rule, Tenant shall be
assessed a penalty fee at the sole discretion of the Landlord;

(iii) common entrances, lobbies, stairways and corridors giving
access to the Building and the Leased Premises, including such other
areas from time to time which may be provided by the Landlord for
common use and enjoyment within the Property;

(iv) the washrooms as the Landlord may assign from time to time which
are standard to the Building, provided that the Landlord and the
Tenant acknowledges that where an entire floor is leased to the
Tenant or some other tenant the Tenant or such other tenant, as the
case may be, may exclude others from the washroom thereon.

Electricity

         2.    (a) The Landlord covenants with the Tenant to
furnish electricity to the Leased Premises
(except Leased Premises which have separate
meters) for normal office use for lighting
and for office equipment capable of
operating from the circuits available to the
Leased Premises and standard to the
Building.

(b) The amount of electricity consumed on the Leased Premises in excess of
electricity required by the Tenant for normal office use shall be as
determined by the Landlord acting reasonable or by a metering device
installed by the Tenant at the Tenant’s expense. The Tenant shall pay the
Landlord for any such excess electricity on demand.

					
	 	 	 	 	 
	Standard Lease Form
	 	D-1
	 	 
	Form FSGLI (894)	 	 	 	 
	3/27/2008	 	 	 	 

 

 

 

(c) The Tenant covenants to pay to the Landlord the Tenant’s Proportionate
Share of all electricity consumed on the Property (except the amounts
recovered from and paid by tenants separately metered). This amount is
included in full service gross Lease.

(d) In calculating electricity costs for any Fiscal Period, if less than one
hundred percent (100%) of Building is occupied by tenants, then the amount
of such electricity costs shall be deemed for the purpose of this Schedule
to be increased to an amount equal to the like electricity costs which
normally would be expected by the Landlord to have been incurred had such
occupancy been one hundred percent (100%) during such entire period.

3. The Landlord shall maintain and keep in repair the facilities required for the
provision of the interior climate control, elevator (if installed in the Building),
and other services referred to in sub-paragraph (a) and (c) of paragraph 1 and
sub-paragraph (a) of paragraph 2 of this Schedule in accordance with the standards
of office buildings similar to the Building but reserves the right to stop the use
of any of these facilities and the supply of the corresponding services when
necessary by reason of accident or breakdown or during the making of repairs,
alterations or improvements, in the reasonable judgment of the Landlord necessary or
desirable to be made, until the repairs, alterations or improvements shall have been
completed to the satisfaction of the Landlord.

Additional
Services

         4.    (a) The Landlord may (but shall not be obliged)
on request of the Tenant supply services or
materials to the Leased Premises and the
Property which are not provided for under
this Lease and which are used by the Tenant
(the “Additional Services”).

(b) When Additional Services are supplied or furnished by the Landlord,
accounts therefor shall be rendered by the Landlord and shall be payable by
the Tenant to the Landlord on demand. In the event the Landlord shall elect
not to supply or furnish Additional Services, only persons with prior
written approval by the Landlord (which approval shall not be unreasonably
withheld) shall be permitted by Landlord or the Tenant to supply or furnish
Additional Services to the Leased Premises and the supplying and furnishing
shall be subject to the reasonable rules fixed by the Landlord with which
the Tenant undertakes to cause compliance and to comply.

Operating Charges
Payable

         5.    (a) The Tenant covenants to pay to the
Landlord the Tenant’s Proportionate
Share of the excess of the amount of the
Operating Costs in each Fiscal Period
over the Operating Costs in the “Base
Year” (as hereinafter defined).

(b) In this Lease “Operating Costs” shall mean all costs incurred in which
will be incurred by the Landlord in the maintenance, operation,
administration and management of the Property including without limitation:

(i) cost of heating, ventilating and air-conditioning;

(ii) cost of water and sewer charges;

(iii) cost of insurance carried by the Landlord pursuant to paragraph
9(a) of this Lease and cost of any deductible amount
paid by the Landlord in connection with each claim made by the
Landlord under such insurance;

					
	 	 	 	 	 
	Standard Lease Form
	 	D-2
	 	 
	Form FSGLI (894)	 	 	 	 
	3/27/2008	 	 	 	 

 

 

 

(iv) costs of building office expenses, including telephone, rent,
stationery and supplies;

(v) cost of fuel;

(vi) costs of all elevator and escalator (if installed in the
Building) maintenance and operation;

(vii) costs of operating staff, management staff and other
administrative personnel, including salaries, wages, and fringe
benefits;

(viii) cost of providing security;

(ix) cost of providing janitorial services, window cleaning, garbage
and snow removal and pest control;

(x) cost of supplies and materials;

(xi) cost of decoration of common area;

(xii) cost of landscaping;

(xiii) cost of maintenance and operation of the parking areas;

(xiv) cost of consulting, and professional fees including expenses;

(xv) cost of replacements, additions and modifications unless
otherwise included under paragraph 6, and cost of repair;

(c) In this Lease there shall be excluded from Operating Costs the
following:

(i) interest of debt and capital retirement of debt;

(ii) such of the Operating Costs as are recovered from insurance
proceeds; and

(iii) costs as determined by the Landlord of acquiring tenants for
the Property.

6. The Tenant covenants to pay to the Landlord the Tenant’s Proportionate Share of
the costs in respect of each Major Expenditure (as hereinafter defined) as amortized
over the period of the Landlord’s reasonable estimate of the economic life of the
Major Expenditure, but not to exceed fifteen (15) years, using equal monthly
installments of principal and interest at ten percent (10%) per annum compounded
semi-annually. For the purposes hereof, “Major Expenditure” shall mean any
expenditure incurred after the date of substantial completion of the Building for
replacement of machinery, equipment, building elements, systems or facilities
forming a part of or used in connection with the Property or for modifications,
upgrades or additions to the Property or facilities used in connection therewith,
provided that, in each case, such expenditures is not more than ten percent (10%) of
the total Operating Costs of the immediately preceding Fiscal Period.

7. In calculating Operating Costs for any Fiscal Period including the Base Year, if
less than one hundred percent (100%) of Building is occupied by tenants, then the
amount of such Operating Costs shall be deemed for the purposes of this
Schedule to be increased to an amount equal to the like Operating Costs which
normally would be expected by the Landlord to have been incurred had such occupancy
been one hundred percent (100%) during such entire period.

					
	 	 	 	 	 
	Standard Lease Form
	 	D-3
	 	 
	Form FSGLI (894)	 	 	 	 
	3/27/2008	 	 	 	 

 

 

 

8. In this Lease:

(i) “Tenant’s Proportionate Share” shall mean 4.80% subject to
adjustment as determined solely by the Landlord and notified to the
Tenant in writing for physical increases or decreases in the total
rentable area of the Property provided that total rentable area of
the Property and the rentable area of the Leased Premises shall
exclude areas designated (whether or not rented) for parking and for
storage.

(ii) “Base Year” shall mean the calendar year 2008.

					
	 	 	 	 	 
	Standard Lease Form
	 	D-4
	 	 
	Form FSGLI (894)	 	 	 	 
	3/27/2008	 	 	 	 

 

 

 

SCHEDULE “E”

RULES AND REGULATIONS

1. The sidewalks, entry passages, elevators (if installed in the Building) and
common stairways shall not be obstructed by the Tenant or used for any other purpose
than for ingress and egress to and from the Leased Premises. The Tenant will not
place or allow to be placed in the Building corridors or public stairways any waste
paper, dust, garbage, refuse or anything whatever.

2. The washroom plumbing fixtures and other water apparatus shall not be used for
any purpose other than those for which they were constructed, and no sweepings,
rubbish, rags, ashes or other substances shall be thrown therein. The expense of any
damage resulting by misuse by the Tenant shall be borne by the Tenant.

3. The Tenant shall permit window cleaners to clean the windows of the Leased
Premises during normal business hours.

4. No birds or animals shall be kept in or about the Property nor shall the Tenant
operate or permit to be operated any musical or sound-producing instruments or
devise or make or permit any improper noise inside or outside the Leased Premises
which may be heard outside such Leased Premises.

5. No one shall use the Leased Premises for residential purposes, or for the storage
of personal effects or articles other than those required for business purposes.

6. All persons entering and leaving the Building at any time other than during
normal business hours shall register in the books which may be kept by the Landlord
at or near the night entrance and the Landlord will have the right to prevent any
person from entering or leaving the Building or the Property unless provided with a
key to the premises to which such person seeks entrance and a pass in a form to be
approved by the Landlord. Any persons found in the Building at such times without
such keys and passes will be subject to surveillance of the employees and agents of
the Landlord.

7. No dangerous or explosive materials shall be kept or permitted to be kept in the
Leased Premises.

8. The Tenant shall not and shall not permit any cooking in the Leased Premises.
The Tenant shall not install or permit the installation or use of any machine
dispensing goods for sale in the Leased Premises without the prior written approval
of the Landlord. Only persons authorized by the Landlord shall be permitted to
deliver or to use the elevators (if installed in the Building) for the purpose of
delivering food or beverages to the Leased Premises.

9. The Tenant shall not bring in or take out, position, construct, install or move
any safe, business machine or other heavy equipment without first obtaining the
prior written consent of the Landlord which will not be unreasonably withheld. In
giving such consent, the Landlord shall have the right, in its sole discretion, to
prescribe the weight permitted and the position thereof, and the use and design of
planks, skids or platforms to distribute the weight thereof. All damage done to the
Building by moving or using any such heavy equipment or other office equipment or
furniture shall be repaired at the expense of the Tenant. The moving of all heavy
equipment or other office equipment or furniture shall occur only at times consented
to by the Landlord and the persons employed to move the same in and out of the
Building must be acceptable to the Landlord. Safes and other heavy office equipment
will be moved through the halls and corridors only upon steel bearing plates. No
freight or bulky matter of any description will be received into the Building or
carried in the elevators (if installed in the Building) except during hours approved
by the Landlord.

					
	 	 	 	 	 
	Standard Lease Form
	 	E-1
	 	 
	Form FSGLI (894)	 	 	 	 
	3/27/2008	 	 	 	 

 

 

 

10. The Tenant shall give the Landlord prompt notice of any accident to or any
defect in the plumbing, heating, air-conditioning, ventilating, mechanical or
electrical apparatus or any other part of the Building.

11. The parking of automobiles shall be subject to the charges and reasonable
regulations of the Landlord. The Landlord shall not be responsible for damage to or
theft of any car, its accessories or contents whether the same be the result of
negligence or otherwise.

12. The Tenant shall not mark, drill into or in any way deface the walls, ceilings,
partitions, floors or other parts of the Leased Premises and the Building.

13. Except with the prior written consent of the Landlord, no tenant shall use or
engage any person or persons other than the janitor or janitorial contractor of the
Landlord for the purpose of any cleaning of the Leased Premises.

14. If the Tenant desires any electrical or communications wiring, the Landlord
reserves the right to direct qualified persons as to where and how the wires are to
be introduced, and without such directions no borings or cutting for wires shall
take place. No other wires or pipes of any kind shall be introduced without the
prior consent of the Landlord.

15. The Tenant shall not place or cause to be placed any additional locks upon doors
of the Leased Premises without the reasonable approval of the Landlord and subject
to any conditions imposed by the Landlord. Additional keys may be obtained from the
Landlord at the cost of the Tenant. All interior locks are the sole responsibility
of Tenant.

16. The Tenant shall be entitled to have its name shown upon the directory board of
the building and at one of the entrance doors to the Leased Premises, all at the
Tenant’s expense, but the Landlord shall in its sole discretion design the style of
such identification and allocate the space on the directory board for the Tenant.

17. The Tenant shall keep the sun drapes (if any) in a closed position at all times.
The Tenant shall not interfere with or obstruct any perimeter heating,
air-conditioning or ventilating units.

18. The Tenant shall not conduct, and shall not permit any, canvassing in the
Building.

19. The Tenant shall take care of the rugs and drapes (if any) in the Leased
Premises and shall arrange for the carrying-out of regular spot cleaning and
shampooing of carpets and dry cleaning of drapes in a manner acceptable to the
Landlord.

20. The Tenant shall permit the periodic closing of lanes, driveways and passages
for the purposes of preserving the Landlord’s rights over such lanes, driveways and
passages.

21. The Tenant shall not place or permit to be placed any sign, advertisement,
notice or other display on any part of the exterior of the Leased Premises or
elsewhere if such sign, advertisement, notice or other display is visible from
outside the Leased Premises without the prior written consent of the Landlord which
may be arbitrarily withheld. The Tenant, upon request of the Landlord, shall
immediately remove any sign, advertisement, notice or other display which the Tenant
has placed or permitted to be placed which, in the opinion of the Landlord, is
objectionable, and if the Tenant shall fail to do so, the Landlord may remove the
same at the expense of the Tenant.

					
	 	 	 	 	 
	Standard Lease Form
	 	E-2
	 	 
	Form FSGLI (894)	 	 	 	 
	3/27/2008	 	 	 	 

 

 

 

22. The Landlord shall have the right to make such other and
further reasonable rules and regulations and to alter the same as in its
judgment
from time to time be needful for the safety, care, cleanliness and
appearance of the Leased Premises and the Building and for the preservation
of good order therein, and the same shall be kept and observed by the
tenants, their employees and servants. The Landlord also has the right to
suspend or cancel any or all of these rules and regulations herein set out.

Move-In-Move-Out Hours: After 5:00 p.m. M-F, anytime Saturday and
Sunday. Contact Property Manager 48 hours in advance to schedule
move-in or move-out. In the event Tenant does not abide by such rule,
Tenant shall be assessed a penalty fee at the sole discretion of the
Landlord. Tenant is required to provide Landlord with the certificate of
insurance of the moving company for $1 million dollars listing Cambric
Partners and The Colton Company as additional insured. Elevator pads
required. Masonite required on floors for moving. All damage to property
during moving process is the responsibility of the Tenant. Tenant must
receive elevator keys and instructions prior to move-in date.

					
	 	 	 	 	 
	Standard Lease Form
	 	E-3
	 	 
	Form FSGLI (894)	 	 	 	 
	3/27/2008	 	 	 	 

 

 

 

SCHEDULE “F”

LEASEHOLD IMPROVEMENTS

Definition
of Leasehold Improvements

1. For the purposes of this Lease, the Term “Leasehold Improvements” includes,
without limitation, all fixtures, improvements, installations, alterations and
additions from time to time made, erected or installed by or on behalf of the
Tenant, or any previous occupant of the Leased Premises in the Leased Premises and
by or on behalf of other tenants in other premises in the Building (including the
Landlord if an occupant of the Building), including all partitions, doors and
hardware however affixed, and whether or not movable, all mechanical, electrical and
utility installations and all carpeting and drapes with the exception only of
furniture and equipment not of the nature of fixtures.

Installation of
Improvements &
Fixtures

2.
The Landlord shall include in the
Leased Premises the “Landlord’s Work” (as
hereinafter defined). The Tenant shall not
make, erect, install or alter any Leasehold
Improvements in the Leased Premises without
having requested and obtained the Landlord’s
prior written approval. The Landlord’s
approval shall not, if given, under any
circumstances, be construed as a consent to
the Landlord having its estate charged with
the cost of work. The Landlord shall not
unreasonably withhold its approval to any
such request, but failure to comply with
Landlord’s reasonable requirements from time
to time for the Building shall be considered
sufficient reason for refusal. In making,
erecting, installing or altering any
Leasehold Improvements the Tenant shall not,
without the prior written approval of the
Landlord, alter or interfere with any
installations which have been made by the
Landlord or others and in no event shall
alter or interfere with window coverings (if
any) or other light control devices (if any)
installed in the Building. The Tenant’s
request for any approval hereunder shall be
in writing and accompanied by an adequate
description of the contemplated work and,
where appropriate, working drawings and
specifications thereof. If the Tenant
requires from the Landlord drawings or
specifications of the Building in connection
with Leasehold Improvements, the Tenant
shall pay the cost thereof to the Landlord
on demand. Any reasonable costs and
expenses incurred by the Landlord in
connection with the Tenant’s Leasehold
Improvements shall be paid by the Tenant to
the Landlord on demand. All work to be
performed in the Leased Premises shall be
performed by competent contractors and
sub-contractors of whom the Landlord shall
have approved in writing prior to
commencement of any work, such approval not
to be unreasonably withheld (except that the
Landlord may require that the Landlord’s
contractors and sub-contractors be engaged
for any mechanical or electrical work) and
by workmen who have labor union affiliations
that are compatible with these affiliations
(if any) or workmen employed by the Landlord
and its contractors and sub-contractors.
All such work including the delivery,
storage and removal of materials shall be
subject to reasonable supervision of the
Landlord, shall be performed in accordance
with any reasonable conditions or
regulations imposed by the Landlord
including, without limitation, payment on
demand of a reasonable fee of the Landlord
for such supervision, and shall be completed
in good and workmanlike manner in accordance
with the description of the work approved by
the Landlord and in accordance with all
laws, regulations and by-laws of all
regulatory authorities. All improvements
constructed by Tenant shall, at the sole
discretion of Landlord, remain the property
of Landlord at the end of the lease term,
and Landlord reserves the right to require
Tenant to restore the Leased Premises to its
original configuration at Tenant’s sole cost
upon Tenant vacating the Leased Premises.
Copies of required building permits or
authorizations shall be obtained by the
Tenant at its expense and copies shall be
provided to the Landlord. No locks shall be
installed on the entrance doors or in any
doors in the Leased Premises that are not
keyed to the Building master key system.

					
	 	 	 	 	 
	Standard Lease Form
	 	F-1
	 	 
	Form FSGLI (894)	 	 	 	 
	3/27/2008	 	 	 	 

 

 

 

Liens &
Encumbrances on
Improvements &
Fixtures

3. In connection with the making, erection,
installation or alteration of Improvements
and all other work or installations made by
or for the Tenant in the Leased Premises the
Tenant shall comply with all the provisions
of the mechanics’ lien and other similar
statutes from time to time applicable
thereto (including any provision requiring
or enabling the retention by way of holdback
of portions of any sums payable) and, except
as to any such holdback, shall promptly pay
all accounts relating thereto. The Tenant
will not create any mortgage, conventional
sale agreement or the encumbrance in respect
of its Leasehold Improvements or, without
the written consent of the Landlord, with
respect to its trade fixtures nor shall the
Tenant take any action as a consequence of
which any such mortgage, conditional sale
agreement or other encumbrance would attach
to the Property or any part thereof. If and
whenever any mechanics’ or other lien for
work, labor, services or materials supplied
to or for the Tenant or for the cost of
which the Tenant may be in any way liable or
claims therefore shall arise or be filed or
any such mortgage, conditional sale
agreement or other encumbrance shall attach,
the Tenant shall within twenty (20) days
after submission by the Landlord of notice
thereof procure the discharge thereof,
including any certification of action
registered in respect of any lien, by
payment of giving security or in such other
manner as may be required or permitted by
law, and failing which the Landlord may
avail itself of any of its remedies
hereunder for default to the Tenant and may
make any payments or take steps or
proceedings required to procure the
discharge of any such liens.

					
	 	 	 	 	 
	Standard Lease Form
	 	F-2
	 	 
	Form FSGLI (894)	 	 	 	 
	3/27/2008	 	 	 	 

 

 

 

SCHEDULE “G”

BASIC RENT

	 	 	 	 	 
	Months	 	Monthly Basic Rent*	 
	1/1/08 – 12/31/08
	 	$	15,698.00	 
	1/1/09 – 12/31/09
	 	$	16,168.94	 
	1/1/10 – 12/31/10
	 	$	16,652.96	 
	1/1/11 – 12/31/11
	 	$	17,156.61	 
	1/1/12 – 12/31/12
	 	$	17,666.79	 

	 	 	 
	*	 	plus all applicable taxes

					
	 	 	 	 	 
	Standard Lease Form
	 	G-1
	 	 
	Form FSGLI (894)	 	 	 	 
	3/27/2008	 	 	 	 

 

 

 

SCHEDULE “H”

TENANT IMPROVEMENTS

Tenant acknowledges that Landlord has made no representation and has given no
warranty to Tenant regarding the fitness of the Leased Premises for Tenant’s
intended use. Tenant shall take possession of and accept the Leased Premises in its
“AS-IS” condition and “WITH ALL FAULTS”.

Additionally, Landlord, at Landlord’s sole cost and expense, shall complete building
standard tenant improvements substantially in accordance with the mutually approved
plan below. It is understood that the plan below details all of the Tenant
Improvements that will be completed. Only those items detailed in the plan below
will be performed by Landlord.

NOTES: 

1. Carpet throughout except as noted 

2. Full re-paint 

3. Add 220V - 30Amp circuit in network

                                        

Tenant

                                        

Landlord

					
	 	 	 	 	 
	Standard Lease Form
	 	H-1
	 	 
	Form FSGLI (894)	 	 	 	 
	3/27/2008	 	 	 	 

 

 

 

SCHEDULE “I”

PARKING

Grant of Parking Rights

(a) So long as this Lease is in effect and provided Tenant is not in default
hereunder, Landlord grants to Tenant and Tenant’s Authorized Users a license
to use the number and type of parking spaces. Tenant allocation is 16
covered reserved parking spaces at $25.00 per space per month.

As consideration for the use of such parking spaces, Tenant agrees to
pay to Landlord or, at Landlord’s election, directly to Landlord’s parking
operator, as additional rent under this Lease, the parking rate set forth of
$400.00 per month for the initial term of the Lease. Tenant agrees that all
parking charges will be payable on a monthly basis concurrently with each
monthly payment of Monthly Base Rent. Tenant agrees to submit to Landlord
or, at Landlord’s election, directly to Landlord’s parking operator with a
copy to Landlord, written notice in a form reasonably specified by Landlord
containing the names, home and office addresses and telephone numbers of
those persons who are authorized by Tenant to use Tenant’s parking spaces on
a monthly basis (“Tenant’s Authorized Users”) and shall use its best efforts
to identify each vehicle of Tenant’s Authorized Users by make, model and
license number. Tenant agrees to deliver such notice prior to the beginning
of the Term of this Lease and to periodically update such notice as well as
upon specific request by Landlord or Landlord’s parking operator to reflect
changes to Tenant’s Authorized Users of their vehicles.

Visitor Parking

(b) So long as this Lease is in effect, Tenant’s visitors and guests will be
entitled to use those specific parking areas which are designated for short
term visitor parking and which are located within the surface parking
area(s), if any, and/or within the parking structure(s) which serve the
Building. Visitor parking will be made available at a charge to Tenant’s
visitors and guests, with the rate being established by Landlord in its
discretion from time to time. Tenant, at its sole cost and expense, may
elect to validate such parking for its visitors and guests. All such
visitor parking will be on a non-exclusive, in common basis with all other
visitors and guests of the project.

Use of Parking Spaces

(c) Tenant will not use or allow any of Tenant’s Authorized Users to use any
parking spaces which have been specifically assigned by Landlord to other
tenants or occupants or for other uses such as visitor parking or which have
been designated by any governmental entity as being restricted to certain
uses. Tenant will not be entitled to increase or reduce its parking
privileges applicable to the Premises during the Term of the Lease except as
follows: If at any time Tenant desires to increase or reduce the number of
parking spaces allocated to it under the terms of this Lease, Tenant must
notify Landlord in writing of such desire and Landlord will have the right,
in its sole and absolute discretion, to either (a) approve such requested
increase in the number of parking spaces allocated to Tenant (with an
appropriate increase to the additional rent payable to Tenant for such
additional spaces based on the then prevailing parking rates), (b) approve
such requested decrease in the number of parking spaces allocated to Tenant
(with an appropriate reduction in the additional rent payable by Tenant for
such eliminated parking spaces based on the then prevailing parking rates),
or (c) disapprove such requested increase or decrease in the number of
parking spaces allocated to Tenant. Promptly following receipt of Tenant’s
written request, Landlord will provide Tenant with written notice of its
decision including a statement of any adjustments to the additional rent
payable by Tenant for parking under Lease, if applicable. No parking stalls
will be allocated to Tenant with respect to any space leased by Tenant under the Lease which consists of less
than the full incremental amounts of rentable square footage, if any,
required for parking stalls.

					
	 	 	 	 	 
	Standard Lease Form
	 	I-1
	 	 
	Form FSGLI (894)	 	 	 	 
	3/27/2008	 	 	 	 

 

 

 

General Provisions

(d) Landlord reserves the right to set and increase monthly fees and/or
daily and hourly rates for parking privileges from time to time during the
Term of the Lease, except as to Tenant as provided in Section (a) above.
Landlord may assign any unreserved and unassigned parking spaces and/or make
all or any portion of such spaces reserved, if Landlord reasonably
determines that it is necessary for orderly and efficient parking or for any
other reasonable reason. All rent for parking is due and payable on the
first day of each month. Rent is delinquent after the tenth
(10th) day of the month. A 10% late fee is assessed on the
eleventh (11th) day of the month. Failure to pay the rent for
any particular parking may be treated by Landlord as a default under this
Lease and, in addition to all other remedies available to Landlord under the
Lease, at law or in equity, Landlord may elect to recapture such parking
spaces for the balance of the term of this Lease if Tenant does not cure
such failure within the applicable period.

In such event, Tenant and Tenant’s Authorized Users will be deemed
visitors for purposes of parking space use and will be entitled to use only
those parking areas specifically designated for visitors parking subject to
all provisions of this Lease applicable to such visitor parking use.
Tenant’s parking rights and privileges described herein are personal to
Tenant and may not be assigned or transferred, or otherwise conveyed,
without Landlord’s prior written consent, which consent Landlord may
withhold in its sole and absolute discretion. In any event, under no
circumstances may Tenant’s parking rights and privileges be transferred,
assigned or otherwise conveyed separate and apart from Tenant’s interest in
this Lease.

Cooperation with Traffic Mitigation Measures

(e) Tenant agrees to use its reasonable, good faith efforts to cooperate in
traffic mitigation programs which may be undertaken by Landlord
independently, or in cooperation with local municipalities or governmental
agencies or other property owners in the vicinity of the Building. Such
programs may include, but will not be limited to, carpools, vanpools and
other ridesharing programs, public and private transit, flexible work hours,
preferential assigned parking programs and programs to coordinate tenants
within the Project with existing or proposed traffic mitigation programs.

Parking Rules and Regulations

(f) The following rules and regulations govern the use of the parking
facilities which serve the Building. Tenant will be bound by such rules and
regulations and agrees to cause its employees, subtenants, assignees,
contractors, suppliers, customers and invitees to observe the same:

	 	1.	 	Tenant will not permit or allow
any vehicles that belong to or are controlled by Tenant or
Tenant’s employees, subtenants, customers or invitees to be
loaded, unloaded or parking or parked in areas other than those
designated by Landlord for such activities. No vehicles are to
be left in the parking areas overnight and no vehicles are to be
parked in the parking areas other than normally sized passenger
automobiles, motorcycles and pick-up trucks. No extended term
storage of vehicles is permitted.

	 
	 	2.	 	Vehicles must be parked entirely
within painted stall lines of a single parking stall.

	 
	 	3.	 	All directional signs and arrows
must be observed.

					
	 	 	 	 	 
	Standard Lease Form
	 	I-2
	 	 
	Form FSGLI (894)	 	 	 	 
	3/27/2008	 	 	 	 

 

 

 

	 	4.	 	The speed limit within all
parking areas shall be five (5) miles per hour.

	 
	 	5.	 	Parking is prohibited:

in areas not striped for parking;

in aisles or on ramps;

where “NO PARKING” signs are posted;

in cross-hatched areas; and

in such other areas as may be designated from time to time by
Landlord or Landlord’s parking operator

	 	6.	 	Landlord reserves the right,
without cost or liability to Landlord, to tow any vehicle if
such vehicle’s audio theft alarm system remains engaged for an
unreasonable period of time.

	 
	 	7.	 	Washing, waxing, cleaning, or
servicing of any vehicle in any area not specifically reserved
for such purpose is prohibited.

	 
	 	8.	 	Landlord may refuse to permit any
person to park in the parking facilities who violates these
rules with unreasonable frequency, and any violation of these
rules shall subject the violator’s car to removal, at such
owner’s expense. Tenant agrees to use its best efforts to
acquaint its employees, subtenants, assignees, contractors,
suppliers, customers and invitees with these parking provisions,
rules and regulations.

	 
	 	9.	 	Parking stickers, access cards,
or any other device or form of identification supplied by
Landlord as a condition of use of the parking facilities shall
remain the property of Landlord. Parking identification
devices, if utilized by Landlord, must be displayed as requested
and may not be mutilated in any manner. The serial number of
the parking identification device may not be obliterated.
Parking Identification devices, if any, are not transferable and
any device in the possession of an unauthorized holder will be
void. Landlord reserves the right to refuse the sale of monthly
stickers or other parking identification devices to Tenant or
any of its agents, employees or representatives who willfully
refuse to comply with these rules and regulations and all
unposted city, state, or federal ordinances, laws or agreements.

	 
	 	10.	 	Loss or theft of parking
identification devices or access cards must be reported to the
management office in the Project immediately, and a lost or
stolen report must be filed by the Tenant or user of such
parking identification device or access card at the time.
Landlord has the right to exclude any vehicle from the parking
facilities that does not have a parking identification device or
valid access card. Any parking identification device or access
card which is reported lost or stolen and which is subsequently
found in the possession of an unauthorized person will be
confiscated and the illegal holder will be subject to
prosecution. Tenant will be charged for replacement of lost or
stolen parking identification devices or access cards.

					
	 	 	 	 	 
	Standard Lease Form
	 	I-3
	 	 
	Form FSGLI (894)	 	 	 	 
	3/27/2008	 	 	 	 

 

 

 

	 	11.	 	All damage or loss claimed to be
the responsibility of Landlord must be reported, itemized in
writing and delivered to the
management office located within the Project within ten (10)
business days after any claimed damage or loss occurs. Any claim
not so made is waived. Landlord is not responsible for damage by
water or fire, or for the acts or omissions of others, or for
articles left in vehicles. In any event, the total liability of
Landlord, if any, is limited to Two Hundred Fifty Dollars
($250.00) for all damages or loss to any car. Landlord is not
responsible for loss of use.

	 
	 	12.	 	The parking operators, managers
or attendants are not authorized to make or allow any exceptions
to these rules and regulations, without the express written
consent of Landlord. Any exceptions to these rules and
regulations made by the parking operators, managers or
attendants without the express written consent of Landlord will
not be deemed to have been approved by Landlord.

	 
	 	13.	 	Landlord reserves the right,
without cost or liability to Landlord, to tow any vehicles which
are used or parked in violation of these rules and regulations.

	 
	 	14.	 	Landlord reserves the right from
time to time to modify and/or adopt such other reasonable and
non-discriminatory rules and regulations for the parking
facilities as it deems reasonably necessary for the operation of
the parking facilities.

					
	 	 	 	 	 
	Standard Lease Form
	 	I-4
	 	 
	Form FSGLI (894)	 	 	 	 
	3/27/2008	 	 	 	 

 

 

 

SCHEDULE “J”

LEASE GUARANTY

Intentionally Omitted

					
	 	 	 	 	 
	Standard Lease Form
	 	J-1
	 	 
	Form FSGLI (894)	 	 	 	 
	3/27/2008	 	 	 	 

 

 

 

SCHEDULE “K”

TENANT INFORMATION SHEET

	 	 	 
	Company Name:
	 	—ImaRx Therapeutics, Inc.
	 
	 	 
	Type of Business:
	 	—Biopharmaceutical
	 
	 	 
	Number of Employees:
	 	—33
	 
	 	 
	Property Address:
	 	—1730 East River Road,
	 
	 	 
	Suite Number:
	 	—Suite 200
	 
	 	 
	City, State, Zip:
	 	—Tucson, AZ 85718
	 
	 	 
	Business Phone:
	 	—520-770-1259
	 
	 	 
	Business Fax:
	 	—520-791-2437
	 
	 	 
	Main Contact:
	 	—Greg Cobb, CFO
	 
	 	 
	Accounting Contact:
	 	—Brenda Sparks, Sr. Director Finance
	 
	 	 
	Emergency After-Hours
Name:
	 	Dennis Jones
	 
	 	 
	Emergency After-Hours
Address:
	 	 
	 
	 	 
	Emergency After-Hours
Phone:
	 	520-977-1190
	 
	 	 
	Alarm System:
	 	þ Yes     o No

	 	 	 
	*	 	Please supply Colton Company with own code.

					
	 	 	 	 	 
	Standard Lease Form
	 	K-1
	 	 
	Form FSGLI (894)	 	 	 	 
	3/27/2008	 	 	 	 

 

 

 

SCHEDULE “L”

SIGNAGE AGREEMENT

This Signage Agreement (“Agreement”) is entered into this 10th day of December,
2007 by and between Cambric Partners, Landlord, and ImaRx Therapeutics, Inc., Tenant, regarding the
signage rights for the exterior sign band at 1730 East River Road.

In consideration of the mutual covenants set forth, and for other valuable consideration as
described, the parties agree as follows:

	 	1.	 	Location. 1730 East River Road, Tucson (exterior building sign band
above front door)

	 
	 	2.	 	Term. Coterminous with Lease

	 
	 	3.	 	Consideration. None.

	 
	 	4.	 	General Conditions.

	 	a)	 	The sign shall conform to the building standards and shall be
subject to the approval of Landlord.

	 
	 	b)	 	Signage must be in compliance with and approved by the City of
Tucson.

	 
	 	c)	 	All costs associated with the maintenance and upkeep of the
building sign band are the sole responsibility of Tenant, i.e. installation,
electricity, permits, etc.

	 
	 	d)	 	Tenant shall be responsible for removing the sign at the
expiration of the Term and shall restore the building to its original
condition.

	 
	 	e)	 	This Agreement is personal to Tenant and may not be assigned.

	 
	 	f)	 	Tenant shall have the right to utilize the building sign band
if the sign is installed within twelve (12) months of the execution of this
Lease. In the event that the sign is not installed within twelve (12) months
of the execution of this Lease, Tenant shall forfeit the rights to the sign.

IN WITNESS WHEREOF, the parties have signed on the day and year set hereinabove.

	 	 	 
	Landlord:

	 	Tenant:
	Cambric Partners,

	 	ImaRx Therapeutics, Inc.,
	an Arizona general partnership,

	 	a Delaware corporation
	By: Colton Properties, Inc.,
	 	 
	a California corporation
	 	 
	Its: General Partner
	 	 

	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 	 	 
	 

	 	 

Jon W. McClintock, Chief Financial Officer
	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 

Print Name/Title
	 	 

					
	 	 	 	 	 
	Standard Lease Form
	 	L-1
	 	 
	Form FSGLI (894)	 	 	 	 
	3/27/2008	 	 	 	 

 

 

 

SCHEDULE “M”

LICENSE FOR ANTENNA SITE

Intentionally Omitted

					
	 	 	 	 	 
	Standard Lease Form
	 	M-1
	 	 
	Form FSGLI (894)	 	 	 	 
	3/27/2008	 	 	 	 

 

 

 

SCHEDULE “N”

ADDENDUM TO LEASE

The terms of this Addendum change and modify the terms of the standard form Office Building Lease
to which it is attached:

Term

The term of the Lease shall commence the later of January 1, 2008 or when
the Tenant Improvements have been completed by Landlord, and there shall be
no partial delivery of the Premises or partial payment of rent unless Tenant
in writing agrees to accept a part of the Premises while other portions are
being completed, in which case the abatement provisions of Section 2 of the
Lease shall apply.

Rent 

The
Rent set forth in Schedule “G” is correct, except that it
is hereby clarified that:

a) all Landlord’s Taxes, as defined, except rent tax, are already deemed
included in the Base Rent for 2008, and Tenant in future years is only
liable for its Proportionate Share of increases in Landlord’s Taxes above
the Base Year. It is acknowledged that Tenant must pay “Tenant’s Taxes,” and
such taxes are not included in the Base Rent;

b) Tenant is to be charged no Operating Costs for the Base Year of 2008, as
all such costs are included in the stipulated Base Rent, except that Tenant
may be responsible for Additional Services if requested by Tenant and
supplied by Landlord; and

c) except for unusual electricity demands by Tenant under Section 2 of
Schedule “D”, all electricity charges and costs to Tenant are already
included in the Base Rent, and Tenant is only responsible in future years
for its Proportionate Share of the increased costs above the Base Year.

Completion of Tenant Improvements:

Should Landlord fail by January 21, 2008 to deliver the Premises to Tenant,
with all Tenant Improvements in Schedule H complete, then Tenant shall
receive one day of abated rent for each day delayed.

Early Access:

Landlord shall provide Tenant with two weeks early access to
the Leased Premises for the purpose of telecommunications
and furniture installation upon mutual execution of this
lease document and providing Tenant remits a cashier’s check
for all deposit monies due and Tenant provides Landlord with
a certificate of insurance pursuant to the terms of the
Lease. Such access shall not delay the date of substantial
completion and shall be harmonious with Landlord’s
contractors.

					
	 	 	 	 	 
	Standard Lease Form
	 	N-1
	 	 
	Form FSGLI (894)	 	 	 	 
	3/27/2008	 	 	 	 

 

 

 

Right to Terminate

Landlord grants Tenant the right to terminate this lease as
of December 31, 2010 (“Termination Option Date”), provided
that the following minimum conditions are met:

(a) Tenant is not in default of the Lease and has no financial
responsibility owed to Landlord;

(b) This Right to Terminate is for the entire Leased Premises, not a portion
thereof;

(c) Tenant provides Landlord with written notice of its intent to exercise
this termination option no later than June 30, 2010 (“Termination Notice
Date”). Tenant shall remit the lease termination fee as provided in this
section to Landlord with the written lease termination notice. This option
shall expire as of July 1, 2010, if written notice is not received;

(d) Tenant shall pay to Landlord upon the Termination Notice Date any
unamortized tenant improvements (based upon amortization over the term of
the Lease with interest at the rate of eight percent (8%) per annum);

(e) Tenant shall pay to Landlord upon the Termination Notice Date any
unamortized broker commission, including any broker incentive, paid by
Landlord in connection with this Lease (based upon amortization over the
term of the Lease with interest at the rate of eight percent (8%) per
annum);

(f) This Right to Terminate shall be personal to Tenant, and shall be void
in the event of an assignment, transfer or sublease.

Assignment

The provision of Sections 7 (d) through (h) of the Lease
shall not apply to an assignment made by Tenant pursuant to
Section 7 (c) of the Lease.

Removal of
Improvements

Upon termination of the Lease, unless Tenant has installed
improvements other than those being installed by Landlord
pursuant to Schedule “H”, there will be no Improvements to
the Premises which Tenant shall be required to remove.

	 	 	 
	Agreed: Landlord

	 	Agreed: Tenant
	Cambric Partners, an Arizona General  Partnership

	 	ImaRx Therapeutics, Inc.,
	By: Colton Properties, Inc., 

a
California Corporation, General
Partner
	 	A Delaware Corporation

	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 	 	 
	 

	 	 

	 	 	 	 

	 	 
	Its:

	 	 	 	Its:	 	 	 	 
	 

	 	 

	 	 	 	 

	 	 

					
	 	 	 	 	 
	Standard Lease Form
	 	N-2
	 	 
	Form FSGLI (894)	 	 	 	 
	3/27/2008

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}]]