Document:

Exhibit
10.25

 

LEASE OF IMPROVED PROPERTY

 

This Lease made and entered into this 15th day of May, 2005 between Baker Properties Limited Partnership,
having its office and principal place of business in Pleasantville, New York,
herein after referred to as “Lessor” and Tangoe, Inc., a Corporation, organized and existing under the laws of
the State of Delaware, having an office and a place of business in New Haven,
Connecticut 06511, hereinafter referred to as “Lessee”.

 

W I T N E S S E T H

 

That Lessee and Lessor do hereby agree as follows:

 

1.  DEMISED PREMISES

 

(a)                                  Lessor demises and lets to
Lessee and Lessee leases and takes from Lessor the premises outlined in red on Exhibit “A”
attached hereto and made a part hereof (“Demised Premises”), consisting of a 66,000
square foot three story facility, located at 35 Executive Boulevard, Orange,
Connecticut, constituting the entire Complex and consisting of the land and all
structures and improvements, now or hereafter located on the land (“Complex”),
as outlined on in black on Exhibit B.

 

(b)                                 The location and boundaries
of the Complex outlined on Exhibit “B” set forth the general layout of the
Complex, but shall not be deemed to be a representation or agreement on the
part of Lessor that the Complex will be as indicated on Exhibit “B”.  Lessor reserves the right at any time to
change the size, height, layout or location of the building, walks, parking,
and loading, as defined in Article 6A hereof, and/or other areas, now or
at any time hereafter forming a part of the Complex; to make alterations or
additions to, and to build additional stories and to add buildings to the
Complex and to designate other parcels of land to be added to the Complex; and
to combine such other parcels including all buildings and improvements thereon,
with the Complex, provided that in no event shall any such changes, alterations
or additions materially effect Lessee’s business operations on the Demised
Premises or access thereto.

 

(c)                                  Lessee’s right to use and
occupy the Demised Premises during the Term shall include the right to use and
occupy an Exclusive Outside Area as outlined in blue on Exhibit “A”.  Lessee’s use and occupancy of such Exclusive
Outside Area shall be governed by the provisions of Article 6 hereof.  This Exclusive Outside Area contains one (1) truck
and loading docks.  Additionally, Lessee
shall have the exclusive right to the use of all building designated automobile
parking spaces located within the Complex, as outlined in blue on Exhibit B.

 

(d)                                 Nothing herein contained shall
be construed as a grant or demise by Lessor to Lessee of the roof or exterior
walls of the Complex or the land below the floor of the Demised Premises, or
any part of the Complex exterior to the Demised Premises, or of the Common
Areas, except as specified in Lease Article 32.

 

(e)                                  Lessor reserves from the
Demised Premises the right of reasonable ingress and egress through the Demised
Premises to part of the Complex not hereby demised, and also 

 

 

reserves space for pipes, ducts and wires, leading to and from parts of
the Complex not hereby demised.

 

2.  TERM

 

The Term of this Lease shall be for
Seventy-One and One-half (711⁄2) months, commencing May 15, 2005 and ending,
unless sooner terminated on April 30, 2011.  The Term of this Lease shall commence and
Lessee’s obligation to pay the rent and other charges provided for herein shall
commence and become due and payable on May 15, 2005 or on the date when
Lessee shall begin to occupy the Demised Premises, whichever is earlier.

 

Within fifteen (15) days of commencement of
the Term, Lessor and Lessee shall execute and deliver to each other, duplicate
originals of a commencement date statement, in recordable form, which shall
specify the commencement and expiration dates of the Term (“Commencement Date
Statement”), and upon execution the Commencement Date Statement shall be deemed
a part of this Lease.

 

3.  RENT

 

(a)                                  Lessee shall pay a Basic
Rent in advance on the first day of each month of the Term of the Lease as
follows:

 

	
  Period

  	
   

  	
  Annual

  Basic Rent

  	
   

  	
  Monthly

  Basic Rent

  	
   

  
	
  5/15/05 to 4/30/09

  	
   

  	
  $

  	
  1,056,000.00

  	
   

  	
  $

  	
  88,000.00

  	
   

  
	
  5/1/09 to 4/30/10

  	
   

  	
  $

  	
  1,122,000.00

  	
   

  	
  $

  	
  93,500.00

  	
   

  
	
  5/1/10 to 4/30/11

  	
   

  	
  $

  	
  1,188,000.00

  	
   

  	
  $

  	
  99,000.00

  	
   

  

 

If the day on which the Term of this Lease shall commence is other than
the first day of the month, then the rent for the initial fraction of the month
shall be apportioned.  Lessee has paid
$88,000.00(Eighty-Eight Thousand Dollars and no cents), receipt of which is
hereby acknowledged as Basic Rent for the first month; and Lessee has paid
$150,000.00 (One Hundred Fifty Thousand Dollars and No Cents) receipt of which
is hereby acknowledged as a security deposit. 
Provided that Lessee has not been in default under this Lease, the
security deposit shall be reduced to $114,000.00 (One Hundred Fourteen Thousand
Dollars and No Cents) on December 31, 2005, and provided that Lessee has
not been in default under this Lease, further reduced to $99,000.00
(Ninety-nine Thousand Dollars and No Cents) on December 31, 2006.  Provided Lessee is not in default under this
Lease and Lessee has surrendered the Demised Premises to Lessor in accordance
with all of the terms and conditions of this Lease on the Expiration Date (i) Lessor
shall return to Lessee the security deposit then held by Lessor, or (ii) if
Lessor shall have drawn upon such security deposit to remedy defaults by Lessee
in the payment or performance of any of Lessee’s obligations under this Lease,
Lessor shall return to Lessee that portion, if any, of such security deposit
remaining in Lessor’s possession within thirty (30) days after the later of (x) the
Expiration Date, or (y) Lessee’s surrender of the Demised Premises to Lessor.

 

 

All rental payments shall be paid to directly to Lessor’s lender at
Keybank Real Estate Capital, Attn: Wholesale Lockbox,895 Central Avenue, Suite 600,
Cincinnati, OH 45202 or at such other place as Lessor may designate in writing,
free of all claims, demands, or offsets of any kind or character.

 

If Lessee shall fail to pay when due any
installment of Basic Rent, Real Property Tax Escalations or any other charges
to be paid by Lessee hereunder, Lessee shall pay a late charge of $0.06 for
each $1.00 which remains unpaid.  Such
late charge is intended to compensate Lessor for additional expenses incurred
by Lessor in processing such late payments and shall be due and payable within
five (5) days of billing therefor. 
Nothing herein shall be intended to violate any applicable law, code or
regulation, and in all instances all such charges shall be automatically
reduced to any maximum applicable legal rate or charge.  Such charge shall be imposed monthly for each
late payment.

 

(b)                                 The Basic Rent shall be
gross to Lessor and shall also include Base Year Real Property Taxes, as
hereinafter defined, and Base Year Common Area Costs (“COC”) as hereinafter
defined.  The Base Year amount for COC
shall be $54,195.14.  Beginning on May 1,
2008, the Base Year for COC shall be equal to the COC due for the Complex
during the 2008 calendar year.  COC shall
be defined as, and shall include, the cost of; trash, garbage and other refuse
removal; the cost and expense of gardening and landscaping; Lessor’s insurance
including bodily injury, public liability, property damage liability, fire and
extended coverage or all risk insurance covering the Complex, and rent
insurance.  Additional costs incurred by
Lessor to effectuate operation, maintenance and repair of the Complex including
but not limited to repairs to the building and building improvements and other parts
of the Complex; restriping parking areas; repair to parking areas; painting;
maintenance and repairs of traffic and directional signs and equipment;
maintenance and repair of electric and other utility lines servicing the
Complex, policing and regulating traffic; maintenance and repair of fire
sprinkler, plumbing, HVAC repairs and maintenance, elevator maintenance, window
cleaning and costs for roof maintenance (less than $5,000 (Five Thousand
Dollars) per annum for the period ending April 30, 2008 only); repair to
the parking area; and all other similar costs properly chargeable to such
operation, maintenance and repair.  COC
shall also include:

 

1)                                      Reasonable wages and
salaries of all on-site personnel engaged in the actual physical operation and
maintenance of the Complex, including Employer’s Social Security Taxes and any
other taxes which may be levied against Employer on such wages and salaries,
but excluding salaries of executive personnel above the level of Property
Manager.

 

2)                                      Reasonable and customary
managing agent’s fees in accordance with any agreement between the Landlord or
owner of the Complex and any managing agent (not to exceed five percent (5%) of
gross rentals).

 

3)                                      All office supplies and
similar materials used in the operation of the Complex.

 

Lessor shall, on or before December 15th of each Lease Year during the Term hereof,
furnish Lessee with a written estimate (“Estimate”) of anticipated increases in
COC and increases in Real Property Taxes for the ensuing Lease Year.

 

 

Commencing with the first monthly rent
payment due and thereafter each month during the balance of such ensuing Lease
Year, Lessee shall pay, together with the Basic Rent hereinbefore provided,
one-twelfth (1/12) of Lessee’s Proportionate Share of the annual amount of the
foregoing estimated increases in COC and increases in Real Property Taxes, all
pursuant to such Estimate.  Within one
hundred thirty-five (135) days after the close of each calendar year, Lessor
agrees to furnish to Lessee a statement of actual increases in COC and
increases in Real Property Taxes incurred during the preceding year together
with an accounting of all payments made by Lessee during such year.  If Lessee has overpaid, then Lessor shall
furnish Lessee with a credit statement to be applied to the next monthly rent
payment due, and if Lessee has underpaid, Lessee shall pay the amount of the
underpayment together with the next monthly rent payment due.  Any such adjustment shall survive the
expiration of this Lease and if the term expires and either party owes the
other any money pursuant to this section, such amount shall be paid within
thirty (30) days after Lessor provides the statement to Lessee.

 

Notwithstanding anything to the contrary
contained herein, COC shall be exclusive of the following, which shall not be
charged to Tenant:

 

a)                                      Items which are the
responsibility of any tenant or Landlord or caused by the intentional or
grossly negligent acts of any such tenant, Landlord, their agents, employees,
contractors, licensees or invitees;

 

b)                                     All costs of leasing space
in the complex including office expenditures, legal fees and broker’s
commissions;

 

c)                                      Costs actually covered by
Landlord’s insurance or other manner of reimbursement to the extent that
payment is actually received by Landlord;

 

d)                                     Condemnation cost or Capital
repairs resulting from damage by fire, windstorm or other casualty as set forth
and pursuant to Article 10 and 11 of this Lease;

 

e)                                      Depreciation and
amortization of any kind;

 

f)                                        Interest on debt or
amortization payments on any mortgage or mortgages and/or rentals under any
ground lease or other underlying leases.

 

Notwithstanding the provisions of this
Article, during the initial term of this Lease, any expenditure which is made
to the Complex and which is considered to be a capital item under generally accepted
accounting principals, then the cost of such capital expenditure shall be
included in COC if amortized over the useful life of such cost on a straight
line basis.

 

In addition Lessee shall be directly
responsible for all costs and expenses associated with the service and
maintenance of janitorial, extermination and snow plowing for the Demised
Premises and Complex.  Lessee shall
contract directly with janitorial services for the Demised Premises and snow
plowing services for the Demised Premises and Complex.  Said services shall be provided in similar
manner and scope as Lessor maintains its own adjacent properties.

 

 

4.  IMPROVEMENTS

 

(a)                                 Lessor’s Work

 

The Demised Premises shall be delivered in an
As-Is condition and Lessee accepts the Demised Premises in its As-Is, Where-Is
condition.

 

If Lessee is not in default and has a tangible net worth of $5,000,000
or greater, Lessor shall provide to Lessee a $390,000 cash allowance (“Allowance”)
on May 1, 2008 (“Allowance Date”) toward proposed Lessee building
improvements or future rent payments. 
Upon 60 days prior notice between May 1, 2008 and May 1, 2009,
Lessee must notify Lessor in writing if it intends to use part or all of the
cash allowance as a credit against future rent obligations.  Upon said notification, Lessor will credit
tenant for future rent payments up to the amount of the notification
amount.  If Lessee utilizes a portion of
said Allowance, then Lessee must operate in conformance with paragraph 4(b) below.

 

(b)                                Lessee’s Work

 

1.                                       Within thirty (30) days
following the execution and delivery of this Lease, Lessee shall submit to
Lessor, for Lessor’s written approval, which shall not be unreasonably withheld
or delayed, at Lessee’s own cost and expense, plans for the Demised Premises,
prepared by architects and engineers (where applicable) and others previously
approved by Lessor, describing all work (Lessee’s Work), other than Lessor’s
Work necessary for the opening and operation of Lessee’s business, including,
without limitation, trade fixtures and equipment, lighting fixtures and
appliances, and Lessee shall also deliver to Lessor a detailed statement of the
cost of Lessee’s Work.  Such plans and
specifications shall be prepared in, and Lessee’s Work shall be completed in,
conformity with all applicable laws, codes, orders, rules, regulations and
requirements and Lessor’s approval shall not be a waiver of the foregoing
requirement nor impose any liability or responsibility upon Lessor for the
legality or adequacy of such plans and specifications.

 

2.                                       Lessee shall employ in the
performance of Lessee’s Work, only such labor as will not cause any controversy
with any labor organization, representing trades performing work for Lessor,
its contractors and subcontractors, in and about the Complex.  All contractors performing work for Lessee
shall be subject to Lessor’s prior approval which shall not be unreasonably
withheld.

 

3.                                       Lessee shall be responsible
for obtaining all permits from governmental agencies having jurisdiction, prior
to the commencement of any Lessee’s Work and all certificates of occupancy and
other documents reasonably required by Lessor to evidence completion of Lessee’s
Work.

 

4.                                       Lessee shall cause such
contractors employed by Lessee to carry workmen’s compensation insurance in
accordance with statutory requirements and comprehensive liability insurance
covering such contractors in amounts not less than $1,000,000 single combined
limit, which policy shall name Lessor as an additional insured, and Lessee
shall 

 

 

submit certificates evidencing such insurance coverage to Lessor prior
to the commencement of any work.

 

5.                                       Pursuant to paragraph 4 (a) above
Lessor shall fund the remaining Allowance, if any, towards the cost of Lessee’s
Work.  Such costs shall be paid bi-weekly
on the 10th or the 25th of the month by Lessor to either Lessee or directly to
Lessee’s contractors.  In the event that
the 10th or the 25th is not a business day, payment shall be made on the next
business day.  Lessee shall provide
Lessor not later than five (5) business days prior to the date for payment
with a request for payment listing the work completed and for the appropriate
application period for which these progress payments are being requested and
attaching thereto copies of contractor requests with applicable lien releases
for payment for such work.  Lessee shall
also indicate to whom such payment shall be directed.  Upon receipt of such listing, Lessor shall be
authorized to and shall disburse such amounts less a ten percent (10%)
retainage as indicated on the next succeeding payment date.  Upon making such disbursements, Lessor shall
provide Lessee with an accounting of such disbursements including the total
disbursements to date and the amount remaining available from the
Allowance.  So long as a Certificate of
Occupancy for the Demised Premises has been furnished to Lessor and all
outstanding lien releases have been submitted to Lessor, the retainage amount
shall be disbursed at the completion of Lessee’s Work.

 

5.  USE

 

The Demised Premises shall be used by Lessee
for general and administrative offices and for no other purpose without the
written consent of Lessor which consent shall not be unreasonably
withheld.  Additionally, Lessee shall not
store, stack or place any goods or merchandise outside the building.

 

6.  COMMON AREAS, EXCLUSIVE
OUTSIDE AREA AND PARKING

 

(a)                                  Lessee shall have the use of
the entire Complex and there are no common areas in Complex.

 

(b)                                 “Exclusive Outside Area”
shall mean the parking, loading and other outside areas of the Complex as
outlined in blue, and designated as “Exclusive Outside Area”, on Exhibit “B”.  Subject to the other provisions of this
Lease, Lessee, its employees, agents, licensees and invitees shall have the
exclusive right to use the Exclusive Outside Area for access to and from the
Demised Premises, loading and parking. 
Notwithstanding the foregoing, Lessor shall have no obligation
whatsoever to enforce the exclusive right or to patrol the Exclusive Outside
Area.  Use of the Exclusive Outside Area
shall be at the sole risk of the user; and excepting Lessor’s gross negligence
Lessor shall not be liable for any injury to person or property, or for loss or
damage to any vehicle or damage to any vehicle or its contents resulting from
theft, collision, vandalism or any other cause whatsoever.  Lessee shall cause its personnel and visitors
to remove their vehicles from the parking area at the end of a working
day.  If any vehicle owned by Lessee or
by its personnel or visitors remains in the parking area overnight and the same
interferes with the cleaning or maintenance of said area (snow or otherwise),
any reasonable out of pocket costs including reasonable attorney fees and
liabilities incurred by Lessor or Lessor’s contractor in 

 

 

removing said vehicle to effectuate cleaning or maintenance, or any
damages resulting to said vehicle or to Lessor’s equipment or equipment owned
by others by reason of the presence or removal of said vehicle during such
cleaning or maintenance shall be paid by Lessee to Lessor, as additional rent,
on the rent payment date next following the submission of a bill therefor.

 

(c)                                  Lessor shall have the right
in accordance with Article 1 (b) and this Article 6 (c); to
enter into, modify and terminate easement and other agreements pertaining to
the use and maintenance of the Exclusive Outside Areas; to construct surface or
elevated parking areas and facilities; to establish and change the level of
parking surfaces; to close all or any portion of the Exclusive Outside Area to
such extent as may, in the opinion of Lessor’s counsel, be necessary to prevent
a dedication thereof or the accrual of any rights to any person or to the
public therein; to discourage non-permitted parking; and to do and perform such
other acts in and to the Complex as, in the exercise of good judgment, Lessor
shall determine to be advisable with a view to the improvement of the
convenience and use thereof by Lessee, their officers, agents, employees and
customers, notwithstanding anything in this Article 6 (c) to the contrary,
Lessor  shall have no obligation
whatsoever to take any of the foregoing actions.  Notwithstanding anything to the contrary
contained in this Article 6(c), in no event shall any of the changes or
improvements to the Complex or Exclusive Outside Areas materially effect Lessee’s
ingress or egress into the Demised Premises. 
To the extent that changes or improvements are contemplated pursuant to
this Article 6(c), Lessor shall use its reasonable discretion in providing
Lessee with plans related to the proposed changes or improvements for its
review.

 

(d)                                 Lessee and its employees,
agents, licensees, and invitees shall park only in parking spaces as striped in
designated parking areas.

 

7.  COVENANT OF TITLE AND
QUIET ENJOYMENT

 

Lessor covenants with Lessee that Lessor has
good right to lease said premises in the manner aforesaid.  Lessee, upon paying the rent, and subject to
all the terms and covenants of this Lease, and subject to the provisions of any
mortgage or installment purchase agreement to which this Lease is subordinate
shall quietly have and enjoy the leased premises during the Term of this Lease
without hindrance or molestation by any person.

 

8.  SIGNS

 

Lessee shall be allowed its proportionate
share of all lineage on the building’s directory board and be permitted to
install appropriate signage on the walls of elevator lobbies and entrance doors
to all space under lease.  Subject to
Lessor’s approval and state and local codes in affect, Lessee shall also be
allowed to place Lessee’s business name on the exterior facade of the
building.  Lessee shall bear all costs
associated with the fabrication and installation, maintenance, and repair of
all such signage.  Lessee shall have the
obligation, at the termination of the Lease, to remove all signage and shall
repair and be responsible for any damage to the Complex occasioned by the
installation or removal of all signage.

 

 

9.  REPAIRS, MAINTENANCE,
ALTERATIONS, CLEANING

 

(a)                                  Subject to the provisions of
Article 3.b., Lessee shall at Lessee’s sole cost and expense, keep and
maintain all portions of the Demised Premises in a clean, wholesome and
sanitary condition and in good order and repair, including, but not limited to
plumbing, electrical, heating and air conditioning systems and the entire interior
of the Demised Premises.  .  Lessee 
shall obtain a standard service agreement from a reputable mechanical
systems service company for the regular service and maintenance of the heating,
ventilation and air conditioning systems in the Demised Premises.  Lessee shall provide Lessor a copy of such
agreement upon Lessor’s request.

 

(b)                                 Lessor agrees to pass on to
Lessee, if possible, the benefits of any manufacturer’s warranties on equipment
installed by Lessor.

 

(c)                                  Lessee shall not make any
alterations or improvements to the Demised Premises without submitting a
detailed cost estimate thereof and without the prior written consent of Lessor,
which consent will not be unreasonably withheld.

 

(d)                                 Lessee shall prevent any
lien or obligation from being imposed upon the Complex and will discharge all
liens or charges for services rendered or materials furnished immediately after
said liens occur or said charges become due and payable.  Notwithstanding the foregoing, after discharging
said liens or charges by Lessee, this shall not prohibit Lessee from filing
separate claims or contesting said liens or charges.

 

Lessee shall be required to make all repairs
resulting from the misuse or neglect by Lessee or any of its employees, agents,
contractors, licensees or invitees or customers.

 

(e)                                  Excepting Lessor’s gross
negligence in performing its maintenance obligations under Article 3(b) and
Article 9(e) and 9(f) of this Lease, Lessor shall have no
liability to Lessee by reason of any inconvenience, annoyance, interruption or
injury to business arising from Lessor making any repairs or changes or
performing maintenance services in the Demised Premises or Complex, whether or
not Lessor is required or permitted by this Lease or by law to make such
repairs or changes or to perform such services. 
Lessor shall use its best efforts to perform such work, except in case
of emergency, at times reasonably convenient to Lessee and otherwise in such
manner and to the extent practical as will not unreasonably interfere with
Lessee’s use and occupancy of the Demised Premises.

 

(f)                                    Lessor reserves the right,
without being in breach of any covenant of this Lease, to stop or suspend the
rendition of any services which Lessor shall perform for so long as may be
necessary, by reason of accidents, emergencies, the making of repairs or
changes or by reason of difficulty in securing proper supplies or by reason of “Unavoidable
Delays”, which mean any delays due to acts of God, governmental restrictions or
guidelines, strikes, labor disturbances, shortages of materials and supplies
and for any other causes or events whatsoever beyond Lessor’s reasonable
control.  In each instance Lessor shall
exercise reasonable diligence to eliminate the cause of stoppage and to
effect restoration of service and shall give Lessee reasonable notice, when
practicable, of the commencement and anticipated duration of such
stoppage.  Lessee shall not be entitled
to any diminution or abatement of rent or other compensation by reason of any
interruption or stoppage.

 

 

(g)           If
Lessor’s inspection of the Demised Premises and Complex reveals that in Lessor’s
reasonable judgment, Lessee has failed to maintain the Demised Premises as
required by Article 9(a) or has made alterations prohibited by Article 9(c),
then Lessor shall give Lessee written notice of such violations.  If such violations have not been corrected
within thirty (30) days of Lessee’s receipt of such notice, Lessor shall have
the right to enter the Demised Premises, correct the violation, and charge
Lessee the reasonable out of pocket cost of such correction plus ten percent
(10%) for Lessor’s overhead.

 

(h)           Lessee
shall have the right, subject to Landlord’s review and approval, to use
building shafts or conduits between Lessee’s Demised Premises and other parts
of the building, including the roof, for the installation and maintenance of
conduits, cables, ducts, pipes, and other devices for communications, data
processing, supplementary HVAC and other facilities consistent with Lessee’s
use of its Demised Premises and other portions of the building.

 

10.  DAMAGE OR DESTRUCTION

 

(a)           If
the Demised Premises are damaged by fire or other casualty, the risk of which
is covered by the insurance policy described in Article 13, this Lease
shall remain in full force and effect and Lessor shall repair or rebuild the
Demised Premises, except for Lessee’s leasehold improvements, to substantially
the same condition as at the time of such damage.  In the case of damage as a result of a risk
not covered by the aforesaid insurance, Lessor shall have the option to either
rebuild the Demised Premises or terminate this Lease.

 

(b)           The
rent payable by Lessee shall be abated or reduced proportionately during any
period in which, by reason of such damage, there is substantial interference
with the operation of the business of Lessee. 
Such abatement or reduction shall continue for the period commencing
with the damage and ending with the completion by Lessor of such repair and/or
reconstruction.

 

11.  CONDEMNATION

 

If the whole of the Demised Premises is taken
or condemned under the exercise of the power of eminent domain by any public
body or if the same is acquired from negotiations in lieu thereof, then Lessor,
at its option, may terminate this Lease without liability to Lessee for damages
of any kind or nature and Lessee hereby waives any interest it may have in the
amount received from the public body.  If
there is a minor condemnation which does not affect the use of the property for
the purpose intended hereunder, there shall be no adjustment in the rent due
hereunder.  Lessee may make a separate
claim for an award in any proceeding with respect to a taking in this Article for
(1) moving expenses, (2) the loss of Lessee’s leasehold improvements,
and any other claim allowed under law provided such award shall be made in
addition to and shall not result in a reduction of the award to Lessor.

 

12.  UTILITIES AND TAXES

 

 

(a)           In
addition to Basic Rent, Lessee shall pay all charges for water, electricity,
fuel and other utilities consumed at the Demised Premises during the Term.  Lessee shall also pay demand or standby
charges which may be charged by such utilities. 
With respect to Lessee’s 

 

 

actual consumption of fuel and water at the Demised Premises, Lessor,
at the end of the first lease year, shall reimburse Lessee for it’s actual
costs of fuel and water consumption at the Demised Premises as invoiced by the
utility companies up to a maximum amount of $16,500.  For each lease year thereafter, Lessor shall
reimburse Lessee up to a maximum amount of $16,500 (“Escalation Base”) as
escalated annually by the Consumer Price Index for Lessee’s actual consumption
of fuel and water at the Demised Premises. 
For purposes of this paragraph, the Consumer Price Index shall be for
all items for the United States and the Escalation Base shall be $16,500.  Beginning with the 24th month of the Lease, for purposes of
calculating Lessor’s reimbursement escalation to Lessee, the index as of the 13th month of the initial term of the Lease shall
constitute the Base Index.  Beginning
with the 24th month of the Lease, the Index as of the last
month of each lease year shall constitute the Escalation Index.  The Escalation Index shall be divided by the
Base Index; this shall constitute the percentage increase of Lessor’s annual
reimbursement escalation beginning with the 24th month.  For example, if the Base Index on the 13th month is 120 and the Escalation Index on the
24th month is 150: Lessor’s escalation
reimbursement to Lessee at the end of the second lease year would be
(150/120)=125% X $16,500=$20,625.  This
calculation would be applicable to each lease year thereafter through April 30,
2008 only.  Lessee shall submit those
applicable invoices from the utility company to Lessor prior to Lessor’s
reimbursement of fuel and water charges as herein provided.

 

(b)           Lessee
shall pay Lessor, throughout the Term, “Real Property Taxes” (as herein
defined) above the Base Year Real Property Taxes as herein defined.  Said payment to Lessor shall be made at the
time such “Real Property Taxes” are due on a monthly basis in advance or if
required by mortgagee or Lessor, the total amount due to the taxing authority
upon receipt of bills by the taxing authority. 
The “Base Year” Real Property Taxes shall be $163,322.12.  Beginning on May 1, 2008, the Base Year
Real Property Taxes shall be equal to the total Real Property Taxes due for the
Complex during the 2007/2008 fiscal tax year. 
For each succeeding lease year, in addition to Lessee’s Basic Rent,
Lessee shall be responsible for any and all escalations of Real Property Taxes
above the Base Year Real Property Taxes. “Real Property Taxes” shall mean all
real estate and ad valorem taxes, assessments, water and sewer charges, school
taxes and other governmental impositions and charges which shall be levied,
assessed, imposed, or have become due and payable, or liens upon, or arising
from the use, occupancy or possession of the Complex or any part thereof or any
payments made in lieu thereof if the Complex is owned by an Industrial
Development Agency created by the State of Connecticut.  The term Real Property Taxes shall not
include (i) any charge, such as a water meter charge and the sewer rent
based thereon, which is measured by consumption or (ii) any municipal,
state or federal taxes based on net income or any estate, inheritance or
transfer taxes or any franchise taxes assessed against or imposed upon Lessor,
except to the extent substituted for the then Real Property Taxes.  Whether or not Lessor shall take the benefit
of the provisions of any statute permitting any assessment for public
betterments to be paid over a period of years, Lessor shall, nevertheless, be
deemed to have taken such benefit so that the term Real Property Taxes shall
include only the current annual installment of any such assessment.  Lessor hereby covenants with Lessee that
Lessor shall be responsible for paying and shall pay the Real Property Taxes
and shall present receipted tax bills to Lessee.

 

 

(c)           Lessee
shall have the right of Lessor to protest the amount of any assessments but
shall continue to pay the Real Property Taxes. 
Lessor agrees to cooperate with Lessee in such appeal.

 

(d)           Lessee
at all times shall be responsible for and shall pay, before delinquency, all
taxes levied or assessed by any governmental authority on any leasehold
interest, any investment of Lessee in the Demised Premises, or any personal
property of any kind owned, installed or used by Lessee or on Lessee’s right to
occupy the Demised Premises.  In
addition, Lessee shall be responsible for all taxes attributable to any
increased assessment incurred as a result of any of Lessee’s Work (as defined
in Article 4 hereof).  In the event
that Real Property Taxes are not separately assessed or attributable to such
additions, the informal decision by the Tax Assessor with respect thereto shall
be binding on the parties.

 

13.  INSURANCE

 

I.              During
the Term of the Lease, Lessor shall carry and maintain the following types of
insurance in the amounts specified and Lessee shall reimburse Lessor in
accordance with Article 3(b) of the Lease, Lessee’s Share of all
premiums and coverage for insurance as part of the Complex Operating Costs:

 

(a)           Fire
and Allied Perils Insurance including extended coverage, vandalism and
malicious mischief and “Special Risk of Loss/Special Property Form” insurance
covering the Demised Premises against loss or damage by fire, extended
coverage, vandalism and malicious mischief, and “special risk of loss”
insurance contracts in amounts not less than the Full Replacement Cost of the
Demised Premises as specified by Lessor.

 

Policy shall provide for an agreed amount
endorsement which shall suspend the coinsurance provision of the property
policy.

 

“Full Replacement Cost” (as herein defined)
shall be construed to mean replacement cost, without regard to
depreciation.  The Full Replacement Cost
shall be determined periodically by Lessor or by the Mortgagee holding the
mortgage on the Demised Premises.

 

(b)           Rent
or rental value insurance against loss of rent or rental value due to fire,
extended coverage, vandalism and malicious mischief and the “special risk of
loss” insurance contracts, and in the amount equal to Basic Rent for the
Demised Premises plus the estimated amount of Real Estate Taxes and Complex
Operating Costs payable by Lessee for a period of not less than one (1) year
from the date of the loss.

 

(c)           Landlord’s
Liability Insurance including bodily injury and property damage insuring Lessor
against liability for injury to persons or damage to property occurring in or
about the Demised Premises arising out of the ownership, maintenance or use
thereof.

 

(d)           A
“Difference in Conditions” insurance policy, including flood and earthquake,
shall be secured by Lessor at the option of Lessor in situations and circumstances
where such insurance is required.

 

 

II.            In
addition, during the Term of this Lease, Lessee shall carry and maintain for
the benefit of Lessor:

 

(a)           A
Boiler and Machinery insurance policy providing Full Replacement Cost coverage
on any boilers, vessels, objects, machinery, (including air conditioning
equipment) and equipment.

 

(b)           Commercial
General Liability Insurance, including bodily injury, contractual, personal
injury, and property damage liability on an occurrence basis, insuring Lessor
and Lessee (and naming Lessor as an additional insured) against liability for
injury to persons or damage to property occurring in or about the Demised
Premises arising out of the ownership, maintenance, or use thereof. The
liability under such insurance shall not be less than $5,000,000 for any one
person injured or killed and not less than $5,000,000 for any one accident and
such insurance shall not be less than $5,000,000 for any property damage per
occurrence, either on an individual or on a combined single limit basis.

 

(c)           Plate
glass insurance for all glass on the Demised Premises with a company acceptable
to Lessor, or Lessee may self-insure such plate glass insurance exposure and,
excepting Lessor’s gross negligence, shall be solely responsible for the replacement
of damaged plate glass and clear plastic panels at Lessee’s expense.

 

In connection with Lessee’s obligation set
forth in this Article 13, Lessee shall obtain such insurance from an
insurance company or companies of recognized responsibility with a Best’s
Rating of A-VII or better and Lessee shall furnish Lessor with a Certificate of
Insurance indicating the coverage and limits of liability applicable thereto
and evidencing the inclusion of Lessor as an additional named insured under
such policy, “As their interests may appear”. 
Lessor reserves the right to request certified copies of the policy and
all its endorsements.

 

The “Certificate of Insurance” described
above shall contain a thirty (30) day cancellation clause clearly shown
therein.  In addition said Certificate of
Insurance shall clearly state that Lessor will be notified in the event of any
reduction in coverage or any material change to the policy.

 

All policies of insurance (except liability
insurance) shall provide by endorsement that any loss shall be payable to
Lessor, Lessee, or any mortgagee as their respective interests may appear.

 

Lessee’s policy(s) shall be written as a
primary policy not contributing with, or in excess of, insurance that Lessor or
others in interest may have.

 

Lessee shall be responsible for any increased
premiums due to Lessee’s use which will adversely impact any insurance policies
covering the building.

 

It is recommended that Lessee carry all risk
property insurance on all of Lessee’s property including contents, trade
fixtures, and tenant improvements whether installed by Lessor or Lessee as
these items are not insured under Article 13.I.(a).

 

 

In the event any policy recited to this Article 13
shall contain a deductible provision, said deductible, if incurred, shall be
charged to the Complex as a Complex Operating Cost with respect to the
coverages enumerated in Article 13.I. or shall be the responsibility of
Lessee with regard to Article 13.II.

 

To the extent permitted by the insurance
companies furnishing any of the above coverage there shall be a mutual waiver
by Lessor and Lessee of subrogation so that with respect to any loss which is
covered or required by this lease to be covered by insurance carried by Lessor
or Lessee each releases the other from any and all claims with respect to any
losses occurring thereunder.

 

14.  SUBORDINATION

 

(a)           Lessee
agrees that this Lease shall be subordinate to any mortgage, deed of trust or
any other hypothecation for security which has been or may be placed on the
Demised Premises or any part thereof, and to any and all advances made or to be
made thereunder, and to all renewals, replacements and extensions thereof,
requested and made by Lessor and such subordination is hereby made effective
without any further act to be done by Lessee; provided, however that Lessee’s
obligation to subordinate this Lease as aforesaid is expressly conditioned upon
receipt by Lessee of Mortgagee’s standard non-disturbance agreement from such
mortgagee or other holder of a monetary lien upon the Demised Premises or any
part thereof.  Provided, however, in the
event any documents including subordination agreements, lease ratification
agreements and other necessary documents are required to be signed by Lessee to
effectuate the purposes of this Article or the financing or refinancing of
the Demised Premises, Lessee does hereby agree to execute all such documents
upon written demand by Lessor, and to furnish such financial information as may
be required.  Lessee shall also sign a
Subordination Non-Disturbance Agreement which shall be provided by Lessor and
Lessor agrees to obtain for the benefit of the Lessee an executed
non-disturbance agreement from each existing holder of a mortgagee or monetary
lien upon the Demised Premises or any part thereof.

 

15.  CONDITIONAL LIMITATION
AND DEFAULT PROVISIONS

 

Subject to any contrary provisions of any
applicable law, the following shall be conditional limitations of this Lease
and events of default:

 

(a)           Lessee’s
failure to pay Rent, Real Property Taxes or other costs due and payable
hereunder, which failure is not cured within ten (10) days after written
notice of such failure from Lessor to Lessee.

 

(b)           The
nonperformance or violation of the terms and conditions of any other
obligations required hereunder by Lessee, which nonperformance or violation is
not cured within thirty (30) days after written notice thereof from Lessor to
Lessee.  If such nonperformance or
violation cannot be cured within said 30-day period; the same will not be a
default if Lessee exercises due diligence, in the sole discretion of Lessor, to
cure such nonperformance or violation as promptly as possible.

 

 

(c)           Lessee’s
abandonment of the Demised Premises for ten (10) days.

 

(d)           Lessee’s
filing of voluntary bankruptcy proceedings or the making of an assignment for
the benefit of creditors, or the filing of an involuntary bankruptcy
proceeding, which involuntary proceeding is not terminated and dismissed within
sixty (60) days after such filing.

 

In the event of such uncured defaults, Lessor
may:

 

(a)           Terminate
this Lease and render it null and void and the Term of this Lease shall expire
and all right, title and interest of Lessee shall expire and terminate as fully
and completely as if the default day were the date the Term of this Lease
expired, and Lessee will then immediately quit and surrender the Demised
Premises to Lessor.

 

(b)           Reenter
the Demised Premises and receive rent therefrom.

 

(c)           Re-let
the Demised Premises and receive rent therefrom.

 

(d)           As
liquidated damages, accelerate the balance of the rental payments due under the
terms of this Lease.

 

Lessee shall remain liable for the rent and
other charges as provided for herein. 
Lessee shall also be liable for any repairs or reasonable alterations
necessary to prepare the Demised Premises for re-letting.  Lessee waives any rights to damages against
Lessor by reason of any negligent acts taken by Lessor under provisions of this
Article after such default.

 

16.  TERMINATION

 

Upon the expiration of the Term of this
Lease, or any earlier termination thereof, Lessee shall surrender the Demised
Premises to Lessor in a clean, wholesome and sanitary condition and in good
condition and repair, reasonable wear and tear and insured casualties
excepted.  All structural alterations and
improvements which have been made or installed by Lessee and any and all
built-in or replacement fixtures, including all non portable refrigerated air
conditioning equipment, all heating equipment, all electrical fixtures and
units together with all conduits and wiring in connection with all of said
fixtures, originally installed by Lessee or replaced by Lessee during the Term
of this Lease, in or upon or about the Demised Premises, shall be the property
of Lessor and shall be surrendered to Lessor without any payment therefor; or,
in the alternative, at Lessor’s request, Lessee shall, prior to termination,
remove any fixture, machinery or signs that Lessor may designate and otherwise
restore the premises to its original condition, reasonable wear and tear and damage
by the elements or other casualty excepted. 
Notwithstanding the foregoing, Lessor agrees that Lessee shall not be
required to restore the third floor training room at the expiration of this
Lease.

 

Twelve (12) months prior to expiration of the
Term of this Lease, Lessor shall have the right to enter the Demised Premises
for the purpose of showing same to prospective tenants or purchasers.

 

 

17.  HOLDING OVER

 

In the event Lessee shall hold the Demised
Premises after the expiration of the Term hereof, with or without the consent
of Lessor, such holding over shall be deemed to have created a tenancy from
month to month, terminable on thirty (30) days notice by either party to the
other and subject to all the terms, conditions, covenants and agreements of
this Lease, except that rental shall be two times the basic rent.

 

18.  COMMISSIONS

 

Lessor shall pay any commissions payable with
regard to this Lease and any provision hereunder pursuant to a separate
agreement.  Lessee represents that no
broker other than O,R & L Commercial Real Estate, having an office at
2 Summit Place, Branford, CT 06405 participated in the negotiations of the
Lease, and Lessee represents that no other broker was a procuring cause with
regard to this Lease and, accordingly, Lessee agrees to indemnify and hold
Lessor harmless from the claim of any other broker with regard to this Lease.

 

19.  INSPECTION OF PREMISES

 

Lessor or its representatives shall be
entitled at any reasonable time and reasonable manner (excepting emergencies) to
enter upon the Demised Premises for the purpose of inspecting the same, subject
to Lessee’s reasonable security regulations.

 

20.  FINANCIAL STATEMENTS

 

Lessee shall upon the request of Lessor
furnish Lessor published Financial Statements of Lessee in a form reasonably
satisfactory to Lessor.

 

21.  INDEMNIFICATION

 

Excepting Lessor’s gross negligence and
willful misconduct with respect to its maintenance obligations under this
Lease, Lessee agrees that Lessor shall not be liable to Lessee or any other person
or persons for or on account of any injury or damage occasioned in or about the
Demised Premises, the Complex and the Exclusive Outside Area to persons or
property of any nature or sort whatsoever or for or on account of any injury to
person or property that may result by reason of any lack of repair of the
Complex or improvements thereof, or by reason of the acts of any persons on the
Complex or for any other reason whatsoever; Lessee agrees to indemnify and hold
Lessor harmless from and on account of any and all loss, damage, liability,
expense, costs and reasonable counsel fees arising out of or resulting from or
incurred in connection with the matters herein or before specified, and from
any and all liability arising from any occurrence causing injury to any person
or property whomsoever or whatsoever.

 

Lessee hereby agrees not to handle, store or
dispose of any hazardous or toxic waste or substance upon the premises which is
prohibited by applicable federal, state or local statues, ordinances or regulations.  Lessee hereby covenants to indemnify and hold
Lessor, its successors and assigns, harmless from any loss, damage, claims,
costs, liabilities or clean-up costs arising out of Lessee’s use, handling,
storage, or disposal of any such hazardous or toxic wastes or 

 

 

substances as those terms are defined in any applicable statue,
regulation or ordinance on the premises. 
Lessee agrees to indemnify Lessor for any and all expenses incurred in
connection with, and all liabilities resulting from, any violation of any
applicable environmental law, regulation, ordinance or court order pertaining
to the Demised Premises arising other than from an action or omission by
Lessor.  As of the Commencement Date of
this Lease, Lessor warrants that, without any investigation and to the best of
its knowledge that the Complex is in compliance with all local, state and
federal environmental regulations.

 

22.  WAIVER OF TRIAL BY JURY

 

It is mutually agreed between Lessor and
Lessee that the respective parties hereto shall and do hereby waive trial by
jury in any action, proceeding or counterclaim brought by either of the parties
against the other on any matters whatsoever arising out of or in any way
connected with this Lease, including rents or additional rents, Lessee’s use or
occupancy of the Demised Premises, and/or any claim of injury or damage.

 

23.  RECOVERY OF COSTS

 

In the event that any action or proceeding
shall be brought for the purpose of determining or enforcing the rights of
either party hereunder, the party prevailing in such actions or proceedings
shall be entitled to recover from the other party all costs reasonably incurred
by the prevailing party in connection with such action or proceeding including
reasonable attorney’s fees to be determined by the Court.

 

24.  NOTICE

 

Any notice required to be given hereunder
shall be mailed by registered or certified mail to Lessor at 485 Washington
Avenue, Pleasantville, New York 10570, Attn. Philip C. King and to Lessee at 35
Executive Boulevard, Orange, Connecticut 06477, Attn: Mr. Alan Subbloie,
or at such other place as the parties may designate in writing.

 

25.  SUCCESSORS AND ASSIGNS

 

This Lease shall inure to and be binding upon
the respective heirs, executors, administrators, successors and assigns of the
respective parties.

 

26.  LESSOR

 

Lessee shall be confined to and look solely
to the estate and interest of Lessor, its successors and assigns, in the
Complex and any insurance thereon or the proceeds therefrom, for the collection
of any sum due to Lessee for any reason, and no other property or assets of
Lessor shall be subject to levy, execution or other enforcement procedure for
the satisfaction of Lessee’s remedies under or with respect to either this
Lease, the relationship of Lessor and Lessee hereunder or Lessee’s use and
occupancy of the Demised Premises.

 

 

27.  OPERATION AND MANNER OF
USE BY LESSEE

 

Lessee shall, at Lessee’s own cost and
expense, observe the following rules and regulations:

 

1.             keep
the inside and outside of all glass in the doors of the Demised Premises clean;

 

2.             replace
promptly any plate glass of the Demised Premises cracked or broken due to
Lessee’s misuse or neglect with glass of like kind and quality;

 

3.             keep
all garbage, trash, rubbish or refuse in rat-proof containers until removed;

 

4.             keep
all mechanical apparatus free of vibration and noise which may be transmitted
beyond the Demised Premises, to the extent the same would violate any covenant
of quiet enjoyment in any other lessee’s lease;

 

5.             excepting
Lessor’s obligations under this lease, comply with all laws, codes, rules,
regulations, orders, directives and requirements of all governmental
authorities having jurisdiction, and with all codes, rules, regulations,
orders, directions, requirements and recommendations of the board of fire
underwriters and the fire insurance rating organization having jurisdiction
over the area in which the Demised Premises are located or other bodies or
agencies now or hereafter exercising similar functions in the area in which the
Demised Premises are located, in any way pertaining to the use and occupancy of
the Demised Premises by Lessee or pertaining to any signs erected by Lessee
outside the Demised Premises, and whether directed to Lessor or Lessee;

 

6.             not
use or occupy the Demised Premises so as to require alterations or additions to
be made thereto or to the Complex as a result of any law, code, rule,
regulation, order, requirement or directive of any governmental authority
having jurisdiction, or any code, rule, regulation, order, requirement,
directive or recommendation of the local board of fire underwriters or of the
fire insurance rating organization having jurisdiction, or any other body or
agency as hereinabove described;

 

7.             not
disfigure or deface the Demised Premises or the building and not permit or
suffer any waste or any nuisance, or allow the Demised Premises to be used for
any unlawful purpose;

 

8.             not
cause or permit any objectionable or noxious odor to emanate or be dispelled
from the Demised Premises;

 

9.             diligently
perform any and all of Lessor’s obligations with respect to compliance with
environmental laws, regulations, rules and court orders as they pertain to
the Demised Premises arising out of Lessee’s use thereof; and

 

10.           not
conduct or permit its agents or employees to conduct any operations on the
Demised Premises which can reasonably be characterized as refining, producing,
storing, 

 

 

handling, transferring, processing or transporting Hazardous Substances
as that term is defined in any applicable statute, regulation or ordinance
without Lessor’s express prior written consent to each individual type of
operation.

 

28.  SHORING

 

If an excavation or other substructure work
shall be undertaken or authorized upon land adjacent to the Demised Premises,
Lessee, without liability on the part of Lessor therefor, shall afford to the
person causing or authorized to cause such excavation or other substructure
work license to enter upon the Demised Premises for the purpose of doing such
work as such person shall deem necessary to protect or preserve any of the
walls or structures of the building or surrounding lands from injury or damage
and to support the same.  Such entry
shall be accomplished in the presence of a representative of Lessee.  The said license to enter shall be afforded
by Lessee without any diminution or abatement of rent on account thereof
provided that such entry shall not unreasonably interfere with Lessee’s use of
the Demised Premises.

 

29.  LEASE MODIFICATION

 

In the event any lending institution funding
the Demised Premises or the Complex for Lessor shall request reasonable
modifications of this Lease as a condition of obtaining financing, Lessee will
not unreasonably withhold, delay or defer its consent thereto, provided that
such modifications do not adversely affect to a material degree Lessee’s
leasehold interest hereby created or increase the Basic Rent or Lessee’s Share
of Complex Operating Costs or change the Term of this Lease.

 

30.  CONSTRUCTION OF LEASE

 

(a)           The
remedies available to Lessor under the terms of this Lease shall be cumulative
and the exercise of one remedy shall not constitute an election of remedies.

 

(b)           This
Lease shall be constructed in accordance with the laws of the State of
Connecticut.

 

(c)           The
term Lessor (as used herein) shall mean only the owner for the time of such
ownership of Lessor’s interest in this Lease and such owner and each succeeding
owner shall be liable hereunder to the extent as set forth in Article 26
hereof, only with respect to obligations arising during the period of its
respective ownership in the Complex.

 

(d)           Lessee
agrees not to record this Lease, but upon request of Lessee, Lessor and Lessee
shall execute and deliver to Lessee a notice of lease.  Such notice shall identify the Demised
Premises and include the term of the Lease and no other information concerning
the monetary terms and conditions of this Lease.

 

(e)           If
any term or provision of this Lease or the application thereof shall be
determined to be invalid or unenforceable, the remainder of this Lease shall be
valid and enforceable to the fullest extent of the law.

 

 

(f)            This
Lease contains the entire agreement between the parties and no oral statements
or representations or prior written matter not contained herein shall have any
force or effect.  This Lease shall not be
modified in any way except by a writing executed by both parties.

 

31.  ASSIGNMENT-SUBLETTING

 

Lessee shall not have the right to sublet or
transfer less than 11,000 square feet of the Demised Premises (by assignment,
or in any other manner (hereinafter referred to as sublet)) this Lease, or
mortgage or otherwise encumber the leasehold interest of Lessee without first
giving Lessor a written request for such transfer and without first obtaining
in each and every instance the previous written consent of Lessor, which
consent shall not be unreasonably withheld. 
Any assignment or hypothecation of the Demised Premises without the
written consent of Lessor, shall be null and void.  In no event shall Lessee be released from any
liability hereunder.

 

In the event that Lessee desires to sublet
the Demised Premises, in whole or in part, Lessee shall notify Lessor of its
intention to do so.  Lessee may solicit
sublet proposals for the Demised Premises, in whole or in part (in no event
less than 11,000 square feet), for Lessor’s approval.  Upon submission to Lessor by Lessee of a
Sublet Agreement for the Demised Premises, in whole or in part, (said Agreement
being subject to Lessor’s written approval which consent shall not be
unreasonably withheld, mortgagee’s written approval, and this underlying Lease)
executed by and between the Sublessor (and assigns) and Sublessee, Lessor may
at Lessor’s option, elect to terminate this Lease as of the effective date of
the proposed transfer or sublet by giving Lessee written notice thereof within
ten (10) days of Lessee’s submission of said Sublet Agreement to
Lessor.  In the event that Lessor so
elects to terminate this Lease, the same will terminate and Lessee shall be
released from liability hereunder for the balance of the Term of this
Lease.  In the event that Lessor does not
notify Lessee within said ten (10) day period of Lessor’s intent to
terminate this Lease, then Lessee may enter into such Sublet Agreement with
subtenant.  In no event shall Lessee be
released from any liability hereunder.

 

Notwithstanding anything contained in this Article to the
contrary,

 

(i)            Subject to Lessor’s
sole and absolute discretion and with Lessor’s prior written consent, Lessee
shall be allowed to assign this Lease and to sublease the Demised Premises or
any portion thereof whatsoever to any entity resulting from a merger or
consolidation with Lessee or any entity succeeding to the business and assets
of Lessee (herein after referred to collectively as “Merger”).  Lessee shall give Lessor 30 days prior
written notice of such Merger and Lessee shall supply to Lessor documentation
evidencing such Merger.

 

(ii)           Subject to Lessor’s
sole and absolute discretion and with Lessor’s prior written consent, Lessee
shall be allowed to assign this Lease and to sublease the Demised Premises or
any portion there of whatsoever to an “Affiliate” of greater or equal financial
standing.  Such sublease or assignment
shall not be subject to Lessor’s right of termination.  The term “Affiliate” shall mean any entity
that controls, is controlled by or is under the common control of the Lessee.

 

Nothing contained in this Article 31 shall be construed to release
Lessee from any liabilities or responsibilities under the Lease.

 

 

In the event that Lessee sublets the Demised
Premises at a rental rate exceeding Lessee’s then current Basic Rent, then
Lessor, after Lessee is reimbursed for those actual costs it incurs subletting
the Demised Premises, shall be entitled to all additional rent received by said
Sublessee which exceeds Lessee’s Basic Rent.

 

32.  ANTENNA/BACK-UP GENERATOR

 

Lessee may install, at its expense, a
microwave, satellite or other antenna communication systems on the roof plus a
back-up generator in a designated area on site. 
Lessee shall furnish plans and specifications for such system to Lessor
for its approval, which shall not be unreasonably withheld or delayed.

 

33.  LEASE CONTINGENCY

 

This Lease shall be contingent upon the receipt of an unconditional
written approval by Lessor’s lender of all necessary documentation for the
execution of this Lease, including a Lease guarantee agreement from Bayer
Pharmaceutical Corporation.

 

Lessor shall not be liable to Lessee for any damages caused by any
delay in the negotiation, execution or approval and delivery of this Lease.

 

 

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

 

	
   

  	
   

  	
  LESSEE:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TANGOE, INC.

  
	
  /s/ [Illegible]

  	
   

  	
   

  
	
  WITNESS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ [Illegible]

  	
   

  	
  By:

  	
  /s/ Al Subbloie 

  
	
  WITNESS

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Typed Name:Al Subbloie, President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  LESSOR:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BAKER PROPERTIES  LIMITED PARTNERSHIP

  
	
   

  	
   

  	
   

  
	
  /s/ Stephanie Weller

  	
   

  	
  BAKER COMPANIES, INC.

  
	
  WITNESS

  	
   

  	
  Its General Partner

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ [Illegible]

  	
   

  	
  By:

  	
  /s/ Philip C. King 

  
	
  WITNESS

  	
   

  	
   

  	
  Philip C. King 

  
	
   

  	
   

  	
   

  	
  Vice President

  

 

 

	
  STATE OF NEW YORK 

  	
  :

  	
   

  
	
   

  	
  ss:

  	
   

  
	
  COUNTY OF WESTCHESTER

  	
  :

  	
   

  

 

On the 19th day of May,
2005, before me personally appeared Philip C King to me known and known to me
to be the Vice President of Baker Companies, Inc., to me known and known
to me to be the General Partner of Baker Properties Limited Partnership, and
known to me to be the person described in and who executed the foregoing
instrument in the partnership name, and he duly acknowledged the foregoing
instrument to be his free act and deed and the free act and deed of said
partnership.

 

	
  /s/ Theresa A. Hanson

  	
   

  
	
  NOTARY

  	
   

  
	
  THERESA A. HANSON

  	
   

  
	
  Notary Public, State of New York

  	
   

  
	
  No. 01HA5022667

  	
   

  
	
  Qualified in Westchester County

  	
   

  
	
  Commission Expires Jan. 18, 2006

  	
   

  

 

	
  STATE OF CONNECTICUT

  	
  :

  	
   

  
	
   

  	
  ss:

  	
   

  
	
  COUNTY OF NEW HAVEN

  	
  :

  	
   

  

 

On this       
day of May, 2005, before me, personally came Albert R. Subbloie to me known,
who being by me duly sworn did depose and say that he is the President of
Tangoe, Inc., the corporation described in and which executed the
foregoing instrument, in the corporate name, and he duly acknowledged the
foregoing instrument to be his free act and deed and the free act and deed of
said corporation.

 

	
  /s/ Linda A. Subbloie

  	
   

  
	
  Commissioner of Superior Court

  	
   

  
	
  Juris # 413141

  	
   

  

 

 

EXECUTION COPY

 

 

 

 

 

TANGOE,
INC.

 

FIRST
ADDENDUM

TO

LEASE OF IMPROVED PROPERTY

 

THIS AGREEMENT made as of
this 19th day of February, 2010 by and between WU/LH 35 Executive L.L.C., a Delaware
limited liability company, having an office at c/o Lighthouse Real Estate
Management, 60 Hempstead Avenue, Suite 718, West Hempstead, New York,
11552 (“Lessor”)  and
Tangoe, Inc.,  a
Delaware corporation, having an office and principal place of business at 35
Executive Boulevard, Orange, CT 06477 (“Lessee”).

 

WITNESSETH:

 

WHEREAS,  Lessor, as
successor-in-interest to Baker Properties Limited Partnership, and Lessee,
previously entered into a written Lease Agreement dated as of May 15,
2005, hereinafter referred to as the “Lease”,
for general offices at 35
Executive Boulevard, Orange, CT 06477 (“Demised Premises”);

 

WHEREAS,  the Lessee desires to extend
the Term of the Lease, which is scheduled to expire on April 30, 2011, to
and including April 30, 2016; and

 

WHEREAS,  the Lessee and Lessor desire
to modify the Lease in certain other respects as set forth herein.

 

NOW; THEREFORE,  in consideration of the mutual
covenants herein set forth and for other good and valuable consideration, the
parties hereto agree to amend the Lease as of the date hereof as follows:

 

1.             The
Term of the Lease shall be extended for a period of five (5) years (the “Extension
Period”), from May 1, 2011 (the “Extension Date”) to
and including April 30, 2016. 
Accordingly, April 30,
2016 shall be deemed to be the “Expiration Date” under the Lease
for all purposes thereof and of this Agreement.

 

2.             (a)           Lessee’s
Basic Rent as defined in Article 3(a) of the Lease with respect to
the Extension Period shall be as follows:

 

	
  From

  	
   

  	
  To

  	
   

  	
  Annual

  Basic Rent

  	
   

  	
  Monthly

  Basic Rent

  	
   

  
	
  5/1/11

  	
   

  	
  4/30/12

  	
   

  	
  $

  	
  1,221,000.00

  	
   

  	
  $

  	
  101,750.00

  	
   

  
	
  5/1/12

  	
   

  	
  4/30/13

  	
   

  	
  $

  	
  1,221,000.00

  	
   

  	
  $

  	
  101,750.00

  	
   

  
	
  5/1/13

  	
   

  	
  4/30/14

  	
   

  	
  $

  	
  1,246,080.00

  	
   

  	
  $

  	
  103,840.00

  	
   

  
	
  5/1/14

  	
   

  	
  4/30/15

  	
   

  	
  $

  	
  1,271,160.00

  	
   

  	
  $

  	
  105,930.00

  	
   

  
	
  5/1/15

  	
   

  	
  4/30/16

  	
   

  	
  $

  	
  1,297,560.00

  	
   

  	
  $

  	
  108,130.00

  	
   

  

 

(b)           Lessee
shall be entitled to an unconditional partial rent credit in the aggregate
amount of Two Hundred Six Thousand Two Hundred Fifty and 00/100 ($206,250.00)
Dollars, which shall be applied against Basic Rent in twelve (12) equal monthly
installments of 

 

 

Seventeen Thousand One Hundred Eighty-Seven and 50/100 ($17,187.50)
Dollars each, during the first year of the Extension Period.

 

3.             Lessee
acknowledges that Lessor has made no representations to Lessee with respect to
the condition of the Demised Premises and Lessee agrees to accept possession of
the Demised Premises in the condition which shall exist on the Extension Date “as
is” and further agrees that Lessor shall have no obligation to perform any work
or make any installations in order to prepare the Demised Premises for Lessee’s
continued occupancy except that, Lessor agrees, at Lessor’s expense, to perform
the Lessor’s Work outlined in Exhibit A, attached hereto and made a part
hereof, and Lessor warrants that the HVAC system installed, as part of the
Lessor’s Work, to service the Demised Premises will be sufficient for the
comfortable use and occupancy of the Demised Premises as currently populated.
The term “comfortable occupancy” as used in the foregoing sentence shall mean: (i) in
the summer, that on a 90 degree Fahrenheit (F.) Outside Air (OA) day with
ninety (90%) percent humidity, inside average temperature will not exceed 78
degrees F. and (ii) in the winter, that on a 10 degree F.  OA day, inside air average temperature will
not fall below 68 degrees F. Lessor shall commence the performance of such
Lessor’s Work reasonably promptly after the execution and unconditional
delivery of this Agreement by Lessor and Lessee and shall thereafter reasonably
diligently prosecute such work to completion, without any obligation on Lessor’s
part to employ contractors or labor at so-called overtime or other premium pay
rates. The performance of such work shall constitute a single non-recurring
obligation on the part of Lessor and in the event the Lease is further renewed
or extended for a further term by agreement or operation of law, Lessor’s
obligation to perform such work shall not apply to any such renewal or
extension.  Lessor may enter the Demised
Premises to perform such work, and entry by Lessor, its agents, servants,
employees or contractors for such purpose shall not constitute an actual or
constructive eviction, in whole or in part, or entitle Lessee to any abatement
or diminution of rent or relieve Lessee from any of its obligations under the
Lease or impose any liability upon Lessor or its agents by reason of inconvenience
or annoyance to Lessee, or injury to or interruption of Lessee’s business or
otherwise. The cost of the Lessor’s Work shall not be charged to Lessee as COC
under Section 3(b) of the Lease.

 

4.             Notwithstanding
anything to the contrary contained in the Lease, effective as of May 1,
2011 (but without affecting any obligations of Lessee to and including April 30,
2011 under the existing provisions), the Base Year for COC shall be the
calendar year 2011 and the Base Year Real Property Taxes shall be the Real
Property Taxes in effect for the calendar year 2011.

 

5.             The
provisions of this Section 5 are effective as of May 1, 2011:

 

a.             Except
as set forth in b. of this Section 5, and subject to the provisions of Section 12(a) of
the Lease, Lessee shall pay all charges for water, sewer, fuel and other
utilities charged with respect to the Demised Premises during the Extension
Period, including, without limitation, any demand or standby charges which may
be charged by such utilities.

 

b.             The
following provision shall be deemed added to the Lease:  Electricity:
Except to the extent provided in Section 5.c. and 5.d. of this Agreement,
Lessor shall pay all charges for electricity consumed on the Complex, as Lessee’s
share of such charges has been included in the Basic Rent.

 

 

c.             In
the event the number of kilowatt hours of electric current (“kwh”) consumed by Lessee on the
Demised Premises during an Electric Year (as defined hereinafter) exceeds the
Annual Baseline Energy Consumption (determined as described in Subsection (1) of
this Section 5.c.), Lessor may charge Lessee, as Electric Rent,
the Average Cost Per KWH (determined as described in Subsection (2) of
this Section 5.c.) for such Electric Year, multiplied by such number of
kwh so in excess of the Animal Baseline Energy Consumption.  Monthly, Lessor shall provide Lessee with the
preceding month’s electric bill, showing the number of kwh consumed by Lessee
on the Demised Premises during such preceding month.

 

(1)           The
“Annual Baseline Energy Consumption”
shall be the number of kwh shown by the meter readings for the Demised Premises
to have been consumed by Lessee on the Demised Premises during the Twelve Month
Baseline Period.  The “Twelve
Month Baseline Period” shall be the twelve (12) month
period beginning on the date of substantial completion (herein, the “Date”) of the Lessor’s Work.

 

(2)           The
“Average
Cost Per KWH” shall be determined for each twelve (12)
month period (each such period, an “Electric Year”) beginning with
the twelve (12) month period commencing on the first (1st) day of the thirteenth (13th) month next following the
Date, by dividing the total amount charged by the utility company for total kwh
consumed by Lessee in the Demised Premises during such twelve (12) month
period, by the total number of kwh so consumed.

 

d.             If,
at any time or times during an Electric Year, the rates at which Lessor
purchases electrical energy for the Demised Premises are increased to exceed
the public utility rate schedule in effect as of October 22, 2009 (i.e.,
the date of the Source One Inc., Energy Audit Report), the Basic Rent for the
remaining part of such Electric Year, and thereafter, shall, upon demand by
Lessor, be increased in an amount which fairly and proportionately reflects the
actual increase in the cost to Lessor of purchasing electrical energy for the
Demised Premises as a result of such rate increase.

 

e.             Lessor
represents that the electrical feeder or riser capacity serving the Demised
Premises shall be adequate to serve the existing lighting fixtures and
electrical receptacles presently installed in the Demised Premises as of the
date of this Agreement and the electrical needs of the Lessor’s Work.  Any additional feeders or risers to supply
Lessee’s additional electrical requirements other than the Lessor’s Work, and
all other equipment proper and necessary in connection with such feeders or
risers, shall be installed by Lessor or, at Lessor’s election, by Lessee upon
Lessee’s request, at the sole cost and expense of Lessee, provided that, in
Lessor’s judgment, such additional feeders or risers are necessary and are
permissible under applicable laws and insurance regulations and the
installation of such feeders or risers will not cause permanent damage or
injury to the Building or the Demised Premises or cause or create a dangerous
or hazardous condition or entail excessive or unreasonable alterations or
repairs or interfere with or disturb other Lessees or occupants of the
Building.  Lessee covenants that at no
time shall the use of electrical energy in the Demised Premises exceed the
capacity of the existing feeders or wiring installations then serving the
Demised Premises.  Lessee shall not make
or perform, or permit the making or performance of, any alterations to wiring
installations or other electrical facilities in or serving the Demised Premises
without the prior consent of Lessor in each instance.  Any such alterations, additions or consent by
Lessor shall be subject to the provisions of this Lease.

 

 

f.              Notwithstanding
anything to the contrary set forth in this Lease, any sums payable or granted
in any way by the corporation(s) and/or other entity(ies) Lessor has
selected to supply electricity to the Building resulting from the installation
in the Demised Premises  of energy
efficient lamping, special supplemental heating, ventilation and air
conditioning systems or any other alterations, which sums are paid or given by
way of rebate, direct payment, credit or otherwise, shall be and
remain the property of Lessor, and Lessee shall not be entitled to any portion
thereof, unless such lamping, supplemental heating, ventilation and air
conditioning systems or other Alterations were installed by Lessee, solely at
Lessee’s expense, without any contribution, credit or allowance by Lessor, in
accordance with all of the provisions of this Lease.  Nothing contained in the foregoing sentence,
however, shall be deemed to obligate Lessor to supply or install in the Demised
Premises any such lamping, supplemental heating, ventilation and air
conditioning systems or other alterations not included in the Lessor’s Work.

 

g.             Notwithstanding
anything herein contained to the contrary, in no event shall that portion of
Lessee’s Basic Rent applicable to the annual charge for electricity ever be
reduced below the sum of $165,000.00.

 

h.             The
word “electricity” shall, hereby, be deleted from the first sentence of Section 12(a) of
the Lease.

 

6.             It
is acknowledged and agreed that Lessee has been provided with the $390,000
Allowance referred to in Section 4(a) of the Lease in its entirety in
the form of a credit against Basic Rent and other charges due under the
Lease.  Lessee acknowledges and agrees
that no further amounts shall be due to Lessee pursuant to Section 4 of
the Lease.  In consideration of Lessee’s
execution and delivery of this Agreement, Lessor hereby acknowledges that
Lessee was entitled to use the Allowance of $390,000 as a rent credit and
Lessor further acknowledges that Lessor has no claim against Lessee for the
repayment of any portion of the Allowance received by Lessee pursuant to said Section 4
of the Lease.  The terms and conditions
of this Paragraph shall not vitiate the provisions of Paragraph 2(b) of
this Agreement or the rent credit to which Lessee may be entitled pursuant to
the terms and conditions of said Paragraph.

 

7.             Lessor
and Lessee each hereby acknowledge and agree that the other party is not, and
has not been, in default under the Lease at any time through the date of this
Agreement.

 

8.             Effective
as of the date hereof, Article 24 of the Lease (entitled “Notice”) is
hereby deemed modified as follows:

 

A.            Any
notice sent to Lessor under the Lease shall be sent to Lessor’s address set
forth above in this Agreement, with a copy to Goldfarb & Fleece, 345
Park Avenue, 33rd Floor, New York, New York 10154, Attention:
Marc J. Becker, Esq.

 

B.            The
provisions of said Article 24 shall be supplemented such that, in addition
to service sent by registered or certified mail, the use of a reputable
nationally recognized overnight courier service, such as, for example, Federal
Express, may also be an effective method of delivery pursuant to said Article 24,
with items delivered by such method deemed to have been given or rendered on
the date when the same shall have been delivered by such courier service or when
delivery by such courier service was refused by the addressee.  With respect to any notice sent by registered
or certified mail (which may be sent return receipt 

 

 

requested optional), such notice shall be deemed to have been rendered
or given on the date when it shall have been mailed.

 

9.             Lessee’s
Installation/Lessor’s Contribution:

 

A.            Promptly
following execution and delivery of the within Agreement, Lessee shall, at
Lessee’s cost and expense except to the extent of Lessor’s Contribution (as defined
hereinafter), (i) paint the painted surfaces in colors selected by Lessee
from Building standard colors, (ii) supply and install new
Building standard carpet in the carpetable areas in the Demised Premises each
in a single color selected by Lessee from Building standard colors (such (i) and
(ii) are referred to collectively herein as the “Base Lessee’s
Installation”) and (iii) perform such other work Lessee elects to
perform (the “Lessee’s Additional Installation” and, together with the
Base Lessee’s Installation, “Lessee’s Installation”) but, in any event,
Lessee covenants that it shall perform the work constituting Base Lessee’s
Installation.  Lessee’s Installation
shall be made and performed in accordance with the provisions of this Lease and
Lessee shall prosecute Lessee’s Installation to completion with all reasonable
diligence.  To the extent required
pursuant to the Lease, prior to Lessee’s performance of any part of the Lessee’s
Additional Installation, Lessee shall obtain Lessor’s approval of the
same.  Lessor shall respond to Lessee’s
request for approval within five (5) days of such request and Lessor shall
not unreasonably withhold such approval.

 

B.            Subject
to the provisions and requirements of this Paragraph 9., and provided that
Lessee is not then in material default under any of the terms, covenants or
conditions of this Lease on the part of Lessee to be observed or performed,
Lessor shall contribute, in the manner described in Subsection C. of this Section 9.,
the sum of not more than TWO HUNDRED TWENTY-FIVE THOUSAND and 00/100
($225,000.00) DOLLARS in the aggregate toward the cost and expense actually
incurred by Lessee with respect to Lessee’s Installation.  Lessor’s contribution is referred to as “Lessor’s
Contribution”.  Irrespective of the
actual cost and expense of Lessee’s Installation, in no event shall such
contribution exceed the aggregate sum of TWO HUNDRED TWENTY-FIVE THOUSAND and
00/100 ($225,000.00) DOLLARS.  Lessee
agrees to use Lessor’s Contribution for improvement of the Demised Premises
and/or of the workspaces contained therein.

 

C.            Provided
that Lessee is not then in material default under any of the terms, covenants
or conditions of this Lease on Lessee’s part to be observed and performed,
Lessor shall distribute to Lessee Lessor’s Contribution on account of Lessee’s
Installation as the Lessee’s Installation progresses, within seven (7) days
of Lessee’s submission to Lessor (i) of invoices from such contractors,
subcontractors, materialmen and laborers as are executing Lessee’s
Installation, for the cost and expense of all or part of Lessee’s Installation,
and (ii) beginning with the second invoice from each contractor,
subcontractor, materialman and laborer, partial waivers of mechanic’s liens
from such applicant for those services or materials that were the subject of
the Lessor’s previous distribution of Lessor’s Contribution; provided however,
that at no time shall Lessor be required to pay more than the value of the work
in place and of materials and equipment delivered and suitably stored at the
site for subsequent incorporation in the work, and provided further that any
such work shall comply with any plans and specifications previously approved by
Lessor (to the extent such approval is required under Section 9.A. of this
Agreement), and shall otherwise comply with the requirements of this
Lease.  Distributions of Lessor’s
Contribution shall be made not more than monthly. With respect to any request
for 

 

 

distribution, Lessee shall provide Lessor with information in reasonable
written detail so that Lessor can readily determine the work performed with
respect to such sums requested, and Lessee shall reasonably cooperate with
Lessor to provide Lessor with further information in the event that Lessor has
any inquiries with respect to the same, but, in any event, Lessor shall only be
required to distribute Lessor’s Contribution to the extent of any work actually
performed and of materials and equipment delivered and suitably stored at the
site for subsequent incorporation in the work.

 

D.(1)       Notwithstanding the aforesaid, Lessor
shall not be required to disburse the last five (5%) percent of Lessor’s
Contribution until the occurrence of all of the following: (i) completion
of Lessee’s Installation in accordance with the plans and specifications
approved by Lessor (to the extent such approval is required under Section 9.A.
of this Agreement) and otherwise in accordance with the provisions of this
Lease and (ii) proof in form reasonably satisfactory to Lessor of payment
by Lessee of the cost and expense of such Lessee’s Installation other than such
5% retainage (including copies of all cancelled checks and receipt of final
waivers of mechanics liens from all contractors, subcontractors, materialmen
and laborers), then, provided that Lessee is not then in material default under
any of the terms, covenants or conditions of this Lease on the part of Lessee
to be observed or performed, the balance of Lessor’s Contribution shall
thereafter be distributed by Lessor to Lessee in accordance with the provisions
hereof.  In the event Lessee is then so
in material default, Lessor shall distribute the balance of Lessor’s
Contribution upon Lessee’s cure of such material default.

 

(2)         To the extent that consents, approvals or sign-offs are required
to be obtained, Lessee shall obtain same within a reasonable period of time
following completion of Lessee’s Installation and deliver same to Lessor.

 

E.             The
making of the Lessor’s Contribution by Lessor shall constitute a single
nonrecurring obligation on the part of Lessor. In the event this Lease is
renewed or extended for a further term by agreement or operation of law, Lessor’s
obligation to give Lessor’s Contribution or any part thereof shall not apply to
any such renewal or extension.

 

F.             Lessee
acknowledges and agrees that Lessor is merely acting on behalf of Lessee in
connection with the disbursement of the Lessor’s Contribution to Lessee for the
contractors, suppliers and materialmen employed in connection with Lessee’s
Installation, and that Lessor shall have no obligation, liability or
responsibility to any of the contractors, suppliers or materialmen seeking any
of the Lessor’s Contribution pursuant to any of the aforesaid contracts or
agreements with such contractors, suppliers or materialmen or otherwise.  Lessee shall indemnify Lessor and its agents
from all loss, cost, liability and expense, including but not limited to
reasonable counsel fees, incurred in connection with, or arising from, any claims
or actions by any contractors, suppliers or materialmen employed in connection
with Lessee’s Installation.

 

10.           The
following Exhibit referred to in this Agreement shall be attached and made
part of this Agreement: “Exhibit A: Lessor’s Work”

 

11.           Except
as otherwise provided for herein, all other terms and provisions set forth in
the Lease shall continue with the same force and effect as if set forth herein
at length.  Any 

 

 

capitalized term not otherwise defined herein shall have the meaning
given such term in the Lease.

 

12.           This
Agreement shall be binding upon the parties hereto, their heirs, successors and
assigns.

 

13.           Lessee
and Lessor each represent and warrant to the other that, other than Lighthouse
Real Estate Management, LLC (“Broker”), no broker was involved in
this Agreement and that, other than with respect to Broker, no commission is
due therefor.

 

14.           This
Agreement may be executed in several counterparts and by each party on a
separate counterpart, each of which, when so executed and delivered, shall be
an original and all of which together shall constitute one instrument.

 

[Signature Page Immediately
Follows]

 

 

IN WITNESS WHEREOF, the
parties hereto have set their hands and seal the day and year first written
above.

 

 

	
  AGREED TO AND ACCEPTED BY:

  	
   

  	
  AGREED TO AND ACCEPTED BY:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  LESSEE:

  	
   

  	
  LESSOR:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  TANGOE, INC.

  	
   

  	
  WU/LH 35 EXECUTIVE L.L.C.

  
	
   

  	
   

  	
  By:

  	
  Lighthouse 100 William Operating LLC, its sole manager

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Gary R. Martino

  	
   

  	
  By: 

  	
  /s/ Paul Cooper

  
	
   

  	
  Name: Gary R. Martino

  	
   

  	
   

  	
  Name: Paul Cooper 

  
	
   

  	
  Title: Chief Financial Officer

  	
   

  	
   

  	
  Title: Member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  /s/ Louis Sheinker

  
	
   

  	
   

  	
   

  	
  Name: Louis Sheinker 

  
	
   

  	
   

  	
   

  	
  Title: Member

  

 

 

EXHIBIT A:      LESSOR’S WORK:

 

Replacement of all existing
HVAC units serving the Demised Premises and installation of a new energy management
system.Exhibit 10.26

 

LEASE AGREEMENT

 

 

Between

 

 

Met 10A-98, Ltd., a Texas limited partnership

 

as Landlord,

 

 

and

 

 

Tangoe, Inc.,

 

as Tenant,

 

Covering approximately 21,600 gross square feet

of the Building known (or to be known) as

 

 

Metric 10W

 

 

located at

 

 

9801 Metric Boulevard, Suite 100

Austin, Texas, 78758

 

 

STANDARD
INDUSTRIAL LEASE AGREEMENT

 

	
   

  	
  Approximately
  21,600 gross square feet

  
	
   

  	
  9801
  Metric Boulevard, Suite 100

  
	
   

  	
  Austin,
  Texas 78758

  
	
   

  	
  (Metric
  10W)

  

 

LEASE AGREEMENT

 

THIS
LEASE AGREEMENT is made and entered into by and between Met 10A-98, Ltd., a
Texas limited partnership, hereinafter referred to as “Landlord,” and Tangoe, Inc.,
hereinafter referred to as “Tenant”.

 

1.  PREMISES AND TERM.  In consideration of the mutual obligations of
Landlord and Tenant set forth herein, Landlord leases to Tenant, and Tenant
hereby takes from Landlord, certain teased premises situated within the County
of Travis, State of Texas, as more particularly described on EXHIBIT “A”
attached hereto and incorporated herein by reference (the “Premises”), to have
and to hold, subject to the terms, covenants and conditions in this Lease.  The term of this Lease shall commence on the
Commencement Date hereinafter set forth and shall end on the last day of the
month that is sixty-three (63) months after the Commencement Date.

 

A.  Existing Building and Improvements.  The “Commencement Date” shall be April 1,
2009.  In such event, Tenant acknowledges
that (i) it has inspected and accepts the Premises in its “as is”
condition, (ii) the buildings and improvements comprising the same are
suitable for the purpose for which the Premises are leased, (iii) the
Premises are in good and satisfactory condition, and (iv) no
representations as to the repair or condition of the Premises nor promises to
alter, remodel or improve the Premises, including the handling or removal of
any communications cable, have been made by Landlord (unless otherwise
expressly set forth in this Lease).

 

2.  BASE RENT, SECURITY DEPOSIT AND ESCROW
DEPOSITS.

 

A.  Basement.  Tenant agrees to pay Landlord rent for the
Premises, in advance, without demand, deduction or set off, at the rate of

 

	
  Months

  	
   

  	
  Base Rental Rate PSF/Mo.

  	
   

  	
  Total Base Monthly Rent

  	
   

  
	
  01-03

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  
	
  04-24

  	
   

  	
  $

  	
  0.61

  	
   

  	
  $

  	
  14,040.00

  	
   

  
	
  25-36

  	
   

  	
  $

  	
  0.66

  	
   

  	
  $

  	
  15,120.00

  	
   

  
	
  37-48

  	
   

  	
  $

  	
  0.71

  	
   

  	
  $

  	
  16,200.00

  	
   

  
	
  49-63

  	
   

  	
  $

  	
  0.76

  	
   

  	
  $

  	
  17,280.00

  	
   

  

 

per
month during the term hereof.  One such
monthly installment, plus the other monthly charges set forth in Paragraph 2C below, shall be due and payable on
the date hereof, and a like monthly installment shall be due and payable on or
before the first day of each calendar month succeeding 

 

 

the
Commencement Date, except that all payments due hereunder for any fractional
calendar month shall be prorated.

 

B.  Security Deposit.  In addition, Tenant agrees to deposit with
Landlord on the date hereof the sum of Fifteen Thousand, Five Hundred Fifty-Two
and Zero /100 Dollars ($15,552.00) (the “Security Deposit”) of which shall be
held by Landlord, without obligation for interest or segregation from other
funds of Landlord, as security for the performance of Tenant’s obligations
under this Lease, it being expressly understood and agreed that the Security
Deposit is not an advance rental deposit or a measure of Landlord’s damages in
case of Tenant’s default.  Upon
occurrence of an Event of Default, Landlord may use all or part of the Security
Deposit to pay past due rent or other payments due Landlord under this Lease or
the cost of any other damage, injury, expense or liability caused by such Event
of Default without prejudice to any other remedy provided herein or provided by
law.  On demand, Tenant shall pay
Landlord the amount that will restore the Security Deposit to its original
amount. The Security Deposit shall be deemed the property of Landlord.  Provided that no Event of Default has
occurred due to Tenant’s failure to fulfill all of its present and future
obligations under the Lease, any remaining balance of the Security Deposit
shall be returned by Landlord together with a written description and
itemization of any deductions to Tenant not later than sixty (60) days after,
Tenant has surrendered the Premises, and Tenant has provided Landlord with
written notice of Tenant’s forwarding address for purpose of returning the
Security Deposit.

 

C.  Escrow Deposits.  Without limiting in any way Tenant’s other
obligations under this Lease, Tenant agrees to pay to Landlord its
Proportionate Share (as defined in this Paragraph 2C below) of (i) Taxes
(hereinafter defined) payable by Landlord pursuant to Paragraph 3A below, and
the cost of any tax consultant to assist Landlord in determining the fair tax
valuation of the building and land (ii) the cost of
utilities payable by Landlord pursuant to Paragraph 8 below, (iii) Landlord’s
cost of maintaining any insurance or insurance related expense applicable to
the Building and Landlord’s personal property used in connection therewith
including, but not limited to, Insurance pursuant to Paragraph 9A below, and (iv) Landlord’s
cost of maintaining the Premises which include but are not limited to (a) maintenance
and repairs, (b) landscaping, (c) common area utilities, (d) water
and sewer, (e) roof repairs, (f) management fees, (g) exterior
painting, and (h) parking lot maintenance and repairs ( i- iv being collectively
referred to as the “Tenant Costs”). 
Escrow deposits shall not include the following expenses:  (a) any costs for interest,
amortization, or other payments on loans to Landlord; (b) expenses
incurred in leasing or procuring tenants, (c) legal expenses other than
those incurred for the general benefit of the Building or its tenants, (d) allowances,
concessions, and other costs of renovating or otherwise improving space for
occupants of the Building or vacant space in the Building, (e) rents under
ground leases, and (f) costs incurred to selling, syndicating, financing,
mortgaging, or hypothecating any of Landlord’s interests in the Building.  During each month of the term of this Lease,
on the same day that rent is due hereunder, Tenant shall deposit in escrow with
Landlord an amount equal to one-twelfth (1/12) of the estimated annual amount
of Tenants Proportionate Share of the Tenant Costs.  Tenant authorizes Landlord to use the funds
deposited with Landlord under this Paragraph 2C to pay such Tenant Costs.  The initial monthly escrow payments are based
upon the estimated amounts for the year in question and shall be increased or
decreased annually to reflect the projected actual amount of all Tenant Costs.  If the Tenant’s total escrow deposits for any
calendar year are less than Tenant’s actual Proportionate Share of the Tenant
Costs for such calendar year, Tenant shall pay the difference to Landlord
within ten (10) days 

 

 

after
demand.  If the total escrow deposits of
Tenant for any calendar year are more than Tenant’s actual Proportionate Share
of the Tenant Costs for such calendar year, Landlord shall have the option to
retain such excess and credit it against Tenant’s escrow deposits after such
determination or to refund such excess to Tenant. In the event the Premises
constitute a portion of a multiple occupancy building (the “Building”), Tenant’s
“Proportionate Share” with respect to the Building, as used in this Lease,
shall mean a fraction, the numerator of which is the gross rentable area
contained in the Premises and the denominator of which is the gross rentable
area contained in the entire Building. 
In the event the Premises or the Building is part of a project or
business park owned, managed or leased by Landlord or an affiliate of Landlord
(the “Project”), Tenant’s “Proportionate Share” of the Project, as used in this
Lease, shall mean s fraction, the numerator of which is the gross rentable area
contained in the Premises and the denominator of which is the gross rentable
area contained in all of the buildings (including the Building) within the
Project.

 

3.  TAXES

 

A.  Real Property Taxes.  Subject to reimbursement under Paragraph 2C
herein, Landlord agrees to pay all taxes, assessments and government charges of
any kind and nature (collectively referred to hereto as Taxes”) that accrue
against the Premises, the Building and/or the land of which the Premises or the
Building are a part.  If at any time
during the term of this Lease there shall be levied, assessed or imposed on
Landlord a capital levy or other tax directly on the rents received therefrom
and/or a franchise or margin to, assessment, levy or charge measured by or
based, in whole or in part, upon such rents from the Premises and/or the land
and improvements of which the Premises are a part (including but not limited to
the tax imposed pursuant to the 2006 amendments to the Texas Tax Code, Chapter
171, then all such taxes, assessments, levies or charges, or the part thereof
so measured or based shall be deemed to be included within the term “Taxes” for
the purposes hereof.

 

B.  Personal Property Taxes.  Tenant shall be liable for all taxes levied
or assessed against any personal property or fixtures placed in or on the
Premises.  If any such taxes are levied
or assessed against Landlord or Landlord’s property and (i) Landlord pays
the or (ii) the assessed value of Landlord’s property is increased by
inclusion of such personal property and fixtures and Landlord pays property and
fixtures and Landlord pays the increased taxes, then Tenant shall pay to
Landlord, upon demand, the amount of such taxes.

 

4.  LANDLORD’S REPAIRS AND MAINTENANCE.

 

A.  Structural Repairs.  Landlord, at its own cost and expense, shall
maintain the foundation and the structural soundness of the exterior walls of
the Building in good repair, reasonable wear and tear excluded.  The term “walls” as used herein shall not
include windows, glass or plate glass, any doors, special store fronts of
office entries, and the term “foundation” as used herein shall not include
loading docks.  Tenant shall immediately
give Landlord written notice of defect or need for repairs, after which
Landlord shall have a reasonable opportunity to effect such repairs or cure
such defect.  In no event shall Landlord
have any obligation or liability to Tenant or any others for the existence of
molds, fungi, bacteria, mildew, and other similar matters (collectively
referred to hereafter as “Molds”), except for the repair or replacement of the
foundation or walls in which such items are found.  Further, Landlord shall 

 

 

not
have any obligation or liability with respect to communications cable within
the Premises except as provided for in Exhibit C.

 

5.  TENANTS REPAIRS.

 

A.  Maintenance of Premises and Appurtenances.  Tenant, at its own cost and expense, shall (i) keep
the Premises free of trash and debris from Tenant’s use, maintain all parts of
the interior of the Premises and promptly make all necessary repairs and
replacements to the Premises (except those for which Landlord is expressly
responsible hereunder), and (ii) keep the parking areas, driveways,
alleyways and areas surrounding the loading docks free of trash, debris and
inventory, including but not limited to pallets, bawls, and equipment from
tenant use.  Tenant’s obligation to
maintain, repair and make replacements to file Premises shall cover, but not be
limited to, pest control (including termites), trash removal and the
maintenance, repair and replacement of all HVAC, electrical, communications
cable, plumbing, sprinkler and other mechanical systems, and the prevention,
containment, treatment, and elimination of Molds.

 

C.  Parking.  Tenant and its employees, customers and
licensees shall have the right to use only its Proportionate Share of any
parking areas that have been designated for such use by Landlord in writing,
subject to (i) all rules and regulations promulgated by Landlord, and
(ii) rights of ingress aid egress of other lessees.  Landlord shell not be responsible for
enforcing Tenant’s parking rights against any third parties, and Tenant
expressly does not have the right to tow or obstruct improperly parked
vehicles.  Tenant agrees not to park on
any public streets or private roadways adjacent to or in the vicinity of the
Premises.  Tenant shall have no right to
a reserved number or location of parking spaces unless this Lease explicitly
provides otherwise.  Tenant shall not
park or store vehicles, trucks or other trailers, campers, RVs, equipment or
other mobile storage units overnight, except in areas specifically designated
and agreed to in writing by Landlord.

 

D.  System Maintenance.  Landlord shall service HVAC equipment within
thirty (30) days of Tenant’s occupancy to ensure such HVAC equipment is in good
working order.  Tenant, at its own cost
and expense, shall prevent the discharge, leakage, or overflow of water and
other liquids produced by all HVAC, electrical, plumbing, sprinkler and other
mechanical systems and shall enter into a regularly scheduled preventive
maintenance/service contract with a maintenance contractor approved by Landlord
for servicing all hot water, hearing, ventilation, and air conditioning systems
(including the servicing of air ducts and ventilations systems for Molds) and
equipment within the Premises.  The
service contract must include the replacement of filters on a regular basis and
all services suggested by the equipment manufacturer in its
operations/maintenance manual and must become effective within thirty (30) days
of the date Tenant takes possession of the Premises.

 

 

E.  Option to Maintain Premises.  Landlord reserves the right to perform, in
whole of in part and without notice to Tenant, maintenance, repairs and
replacements to the Premises, paving common area, landscape, exterior painting,
common sewage line plumbing and any other items that are otherwise Tenant’s
obligations under this Paragraph 5, in which event Tenant shall be liable for
and pay within ten days following demand its Proportionate Share of the cost
and expense (or the full cost and expense as the case may be if specifically a
Tenant obligation) of such repair, replacement, maintenance and other such
items.

 

6.  ALTERATIONS.  Tenant shall not make any alterations,
additions or improvements (collectively referred to as “Alterations”) to the
Premises without the prior written consent of Landlord, Landlord shall not be
required to notify Tenant of whether it consents to any Alterations until it (a) has
received plans and specifications in a CAD disk format therefore which are
sufficiently detailed to allow construction of the work depicted thereon to be
performed in a good and workmanlike manner, and (b) has had a reasonable
opportunity to review them.  If the
Alterations will affect the Building’s structure, HVAC system, or mechanical,
electrical, or plumbing systems, then the plans and specifications therefore
must be prepared by a licensed engineer reasonably acceptable to Landlord and
provided to Landlord in a CAD disk format. Landlord’s approval of any plans and
specifications shall not be a representation that the plans or the work
depicted thereon will comply with law or be adequate for any purpose, but shall
merely be Landlord’s consent to performance of the work.  Upon completion of any Alteration, Tenant
shall deliver to Landlord accurate, reproducible as-built plans therefore in a
CAD disk format.Tenant may erect shelves, bins, machinery and trade fixtures
(collectively “Tenant Installations”) provided that such items (1) do not
alter the basic character of the Premises or the Building; (2) do not
overload or damage the same; and (3) may be removed without damage to the
Premises.  Unless Landlord specifies in
writing otherwise, all alterations, additions, and improvements shall be
Landlord’s property when installed in the Premises.  Unless Landlord notifies Tenant to the
contrary, all shelves, bins, communications cables, machinery and trade
fixtures installed by Tenant shall be removed on or before the earlier to occur
of the day of termination or expiration of this Lease, or vacating the
Premises, at which time Tenant shall restore the Premises to their original
condition.  All work performed by Tenant
in the Premises (including that relating to the installations, repair
replacement or removal of any item) shall be performed in accordance with all
applicable governmental laws, ordinances, regulations, and with Landlord’s
specifications and requirements, in a good and workmanlike manner, and so as
not to damage or alter the Building’s structure or the Premises.  Tenant shall be responsible for compliance
with 1) The Americans With Disabilities Act of 1990 as amended (hereafter “ADA”)
and 2) the Texas Elimination of Architectural Barriers Act (hereafter TEAB”) or
any successor statute to the ADA or TEAB. 
Tenant shall also be responsible for compliance with all applicable
laws, ordinances, and regulations with respect to tagging, installation and
removal of communications cable in, above, appurtenant to, or associated with
the Premises.  At Landlord’s option,
Tenant at its sole cost and expense shall remove all communications cable
installed by it, or on its behalf, or utilized by it (even if installed by
others) during Tenant’s occupancy of the Leased Premises.  No communications cable installed or utilized
by Tenant shall be abandoned by Tenant after it ceases to occupy the
Premises.  The term “communications cable”
includes wire, cable, fiber optic or any other physical method of electronic,
electrical or optical transmission, of a) data, b) information, c) voice and
other sound, d) pictures, motion picture, video or images, or e) other
communication of any kind whatsoever including use as or for audio speaker,
computer network, internet, intranet, electronic mail, fire, security and/or
other 

 

 

emergency
or alarm systems, optical fiber, communications circuits, radio, television,
satellite, computer, coaxial, or network powered broadband whether within or
outside the Premises.  In connection with
any such Alteration, Tenant shall pay to Landlord an  administration fee of five percent (5%) of all costs
incurred for such work.

 

7.  SIGNS. 
Any signage Tenant desires for the Premises shall be subject to Landlord’s
written approval and shall be submitted to Landlord prior to the Commencement
Data of this Lease.  Tenant shall repair,
paint and/or replace the Building fascia surface to which its signs are
attached upon Tenant’s vacating the Premises or the removal or alteration of
its signage.  If Tenant is permitted to
use the Building fascia located directly above the premises for signage, such
use shall be non-exclusive and shall be subject to such other usage as Landlord
may determine.  Tenant shall not, without
Landlord’s prior written consent, (i) make any changes to the exterior of
the Premises, such as painting; (ii) install any exterior lights,
decorations, balloons, flags, pennants or banners; or (iii) erect or
install any signs, windows or door lettering, placards, decorations or
advertising media of any type which can be viewed from the exterior of the
Premises.  All signs, decorations,
advertising media, blinds, draperies and other window treatment or bars or
other security installations visible from outside the Premises shall conform in
all respects to the criteria established by Landlord or shall be otherwise
subject to Landlord’s prior written consent.

 

8.  UTILITIES. 
Landlord agrees to provide normal water and electricity service to the
Premises.  Tenant shall pay for all
water, gas, heat, light, power, telephone, sewer, sprinkler charges and other
utilities and services used on or at the Premises, together with any taxes,
penalties, surcharges or the like pertaining to the Tenant’s use of the
Premises and any maintenance charges for utilities.  Landlord shall have the right to cause any of
said services to be separately metered to Tenant, at Tenant’s expense.  Tenant shall pay its pro rata share, as
reasonably determined by Landlord, of all charges for jointly metered
utilities.  Landlord shall not be liable
for any interruption or failure of utility service on the Premises, and Tenant
shall have no rights or claims as a result of any such failure.  In the event water is not separately metered
to Tenant, Tenant agrees that if water and sewer capacity usage by or within
the Premises exceeds normal domestic restroom and kitchen usage appropriate to
one eight hour week shift per twenty-four hours as determined by Landlord in
its sole discretion, Tenant shall reimburse Landlord for the entire amount of
water and sewer costs as additional rental thereafter.  Such additions, rental shall include but not
be limited to the cost for acquiring additional sewer capacity to service
Tenant’s or the Premises sewer use. 
Furthermore, Tenant agrees in such event to install at its own expense a
submeter to determine Tenants usage.

 

9.  INSURANCE.

 

A.  Landlord’s Insurance.  Subject to reimbursement under Paragraph 2C
herein, Landlord shall maintain insurance covering the Building in an amount
not less than eighty patent (80%)
of the “replacement cost” thereof insuring against the perils of fire,
lightning, extended coverage, vandalism and malicious mischief.

 

B.  Tenant’s Insurance.  Tenant, at its own expense, shall maintain
during the term of this Lease a policy or policies of workers’ compensation and
comprehensive general liability insurance, including personal injury and property
damage, with contractual liability 

 

 

endorsement,
in the amount of Five Hundred Thousand Dollars ($500,000.00) for property
damage and One Million Dollars ($1,000,000.00) per occurrence and Two Million
Dollars ($2,000,000.00) in the aggregate for personal injuries or deaths of
persons occurring in or about the Premises. 
Tenant, at its own expense, shall also maintain during the term of this
Lease fire and extended coverage insurance covering the replacement cost of (i) all
alterations; additions, partitions and improvements installed or placed on the
Premises by Tenant or by Landlord on behalf of Tenant; and (ii) all of
Tenant’s personal property contained within the Premises.  Said policies shall (i) name the
Landlord and management company as additional insured and insure Landlord’s and
management company’s contingent liability under or in connection with this
Lease (except for the workers’ compensation policy, which instead shall include
a waiver of subrogation endorsement in favor of Landlord); (ii) be issued
by an insurance company which is acceptable to Landlord; and (iii) provide
that said insurance shall not be canceled unless thirty (30) days prior written
notice has been given to Landlord.  Said
policy or policies or certificates thereof shall be delivered to Landlord by
Tenant on or before the Commencement Date and upon each renewal of said
insurance.

 

C.  Prohibited Uses.  Tenant will not permit the Premises to be
used for any purpose or in any manner that would (i) void the insurance thereon,
(ii) increase the insurance risk or cost thereof; or (iii) cause the
disallowance of any sprinkler credits; including without limitation, use of the
Premises for the receipt, storage or handling of any product, material or
merchandise that is explosive or highly inflammable.  If any increase in the cost of any insurance
on the Premises or the Building is caused by Tenant’s use of the Premises or
because Tenant vacates the Premises, then Tenant shall pay the amount of such
increase to Landlord upon demand therefor.

 

10.  FIRE AND CASUALTY DAMAGE

 

A.  Total or Substantial Damage and
Destruction.  If the Premises or the
Building should be damaged or destroyed by fire or other peril, Tenant shall
immediately give written notice to Landlord of such damage or destruction.  If the Premises or the Building should be
totally destroyed by any peril covered by the insurance to be provided by
Landlord under Paragraph 9A above, or if they should be so damaged thereby
that, in Landlord’s estimation, rebuilding or repairs cannot be completed
within one hundred eighty (180) days after the date of such damage or after
such completion there would not be enough time remaining under the terms of
this Lease to fully amortize such rebuilding or repairs, then this Lease shall
terminate and the rent shall be abated during the unexpired portion of this
Lease, effective upon the date of the occurrence of such damage.

 

B.  Partial Damage or Destruction.  If the Premises or the Building should be
damaged by any peril covered by the insurance to be provided by Landlord under
Paragraph 9A above and, in Landlords’ estimation, rebuilding or repairs can be
substantially completed within one hundred eighty (180) days after the date of
such damage, then this Lease shall not terminate and Landlord shall
substantially restore the Premises to its previous condition, except that
Landlord shall not be required to rebuild, repair or replace any part of the
partitions, fixtures, additions and other improvements that may have been
constructed, erected or installed in or about the Premises for the benefit of
by or for Tenant.

 

 

C.  Lienholders’ Rights in
Proceeds. 
Notwithstanding anything herein to the contrary, in the event the holder
of any indebtedness secured by a mortgage or deed of trust coming the Premises
requires that the insurance proceeds be applied to such indebtedness, then
Landlord shall have the right to terminate this Lease by delivering written
notice of termination to Tenant within fifteen (15) days after such requirement
is made known to Landlord by any such holder, whereupon all rights and
obligations hereunder shall cease and terminate.

 

D.  Waiver of Subrogation.  Notwithstanding anything in this Lease to the
contrary, Landlord and Tenant hereby waive and release each other of and from
any and all rights of recovery, claims, actions or causes of action against
each other, or their respective agents, officers and employees, for any loss or
damage that may occur to the Premises, improvements to the Building or personal
property (Building contents) within the Building and/or Premises, for any
reason regardless of cause or origin. 
Each party to this Lease agrees immediately after execution of this
Lease to give written notice of the terms of the mutual wavers contained in
this subparagraph to each insurance company that has issued to such party
policies of fire and extended coverage insurance and to have the insurance
policies properly endorsed to provide that the carriers of such policies waive
all rights of recovery under subrogation or otherwise against the other party.

 

11.  LIABILITY AND INDEMNIFICATION.  Except for any claims, rights of recovery and
causes of action that Landlord has released in writing signed by Landlord,
Tenant shall hold Landlord harmless from and defend Landlord against any and
all claims or liability for any injury or damage (i) to any person or
property whatsoever occurring in, on or about the Premises or any part thereof;
the Building and/or other common areas, the use of which Tenant may have in
accordance with this Lease, if such injury or damage shall be caused in whole
or in part by the act, neglect, fault or omission of any duty by Tenant its
agents, servants, employees or invitees at common law, pursuant to statute,
ordinance, or regulation, or under this Lease; (ii) arising from the
conduct or management of any work done by the Tenant in or about the Premises; (iii) arising
from transactions of the Tenant; or (iv) arising pursuant to this Lease;
and (v) all costs, counsel fees, expenses and liabilities incurred in
connection with any such claim or action or proceeding brought thereon.  The provisions of this Paragraph 11 shall
survive the expiration or termination of this Lease.  Landlord shall not be liable in any event for
personal injury or loss of or to Tenant’s property caused by fire, flood, water
leaks, rain, hail, ice, snow, smoke, lightning, wind, explosion, interruption
of utilities, Molds, or other occurrences. 
Landlord strongly recommends that Tenant’s own insurance in excess of
the amounts required elsewhere in this Lease to protect against the above
occurrences if Tenant desires additional coverage for such risks.  Tenant shall give prompt notice to Landlord
of any significant accidents involving injury to persons or property.  Furthermore, Landlord shall not be
responsible for lost or stolen personal property, equipment, money or jewelry
from the Premises or from the public areas of the Building or the Project,
regardless of whether such loss occurs when the area is locked against
entry.  Landlord shall not be liable to
Tenant or Tenant’s employees, customers or invitees for any damages or losses
to persons or property caused by any lessees in the Building or the Project, or
for any damages or losses caused by theft, burglary, assault vandalism or other
crimes.  Landlord strongly recommends
that Tenant provide its own security systems and services and secure Tenant’s
own insurance in excess of the amounts required elsewhere in this Lease to
protect against the above occurrences if Tenant desires additional protection
or coverage for such risks.  Tenant shall
give Landlord prompt written notice of any criminal or 

 

 

suspicious
conduct within or about the Premises, the Building or the Project and/or any
personal injury or property damage caused thereby.  Landlord may, but is not obligated to, enter
into agreements with third parties for the provision, monitoring, maintenance
and repair of any courtesy patrols or similar services or fire protective
systems and equipment and, to the extent same is provided at Landlord’s sole
discretion, Landlord shall not be liable to Tenant for any damages, costs or
expenses which occur for any reason in the event any such system or equipment
is not properly installed, monitored or maintained or any such services are not
properly provided.  Landlord shall use
reasonable diligence in the maintenance of existing lighting, if any, in the
parking garage or parking areas servicing the Premises, and Landlord shall not
be responsible for additional lighting or any security measures in the Project,
the Premises, the parking garage or other parking areas.

 

12.  USE. 
The Premises shall be used only for the purpose of receiving, storing,
shipping and selling (other than retail) products, materials and merchandise
made and/or distributed by Tenant and for such other lawful purposes as may be
directly incidental thereto.  Outside
storage, including without limitation storage of trucks and other vehicles, is
prohibited without Landlord’s prior written consent. Tenant shall comply with
all governmental laws, ordinances and regulations applicable to the use of its
Premises and shall promptly comply with all governmental orders and directives
for the correction, prevention and abatement of nuisances in, upon or connected
with the Premises, all at Tenant’s sole expense.  Tenant shall not permit any objectionable or
unpleasant odors, smoke, dust, gas, noise or vibrations as determined by
Landlord in its discretion to emanate from the Premises, nor take any other
action that would constitute a nuisance or would disturb, unreasonably
interfere with or endanger Landlord or any other lessees of the Building or the
Project.

 

13.  HAZARDOUS WASTE.  The term “Hazardous Substances,” as used in
this Lease, shall mean pollutants, contaminants, toxic or hazardous wastes,
radioactive materials or any other substances, the use and/or the removal of
which is required or the use of which is restricted, prohibited or penalized by
any “Environmental Law,” which term shall mean any federal, state or local
statute, ordinance, regulation or other law of a governmental or
quasi-governmental authority relating to pollution or protection of the
environment or the regulation of the storage or handling of Hazardous
Substances.  Tenant hereby agrees
that:  (i) no activity will be
conducted on the Premises that will produce any Hazardous Substances, except
for such activities that are part of the ordinary course of Tenant’s business
activities (the “Permitted Activities”), provided said Permitted Activities are
conducted in accordance with all Environmental Laws and have been approved in
advance in writing by Landlord and, in connection therewith, Tenant shall be
responsible for obtaining any required permits or authorizations and paying any
fees and providing any testing required by any governmental agency; (ii) the
Premises will not be used In any manner for the storage of any Hazardous
Substances, except for the temporary storage of such materials that are used in
the ordinary course of Tenant’s business (the “Permitted Materials”), provided
such Permitted Materials are properly stored in a manner and location meeting
all Environmental Laws and have been approved in advance in writing by
Landlord, and, in connection therewith, Tenant shall be responsible for
obtaining any required permits or authorizations and paying any fees and
providing any testing required by any governmental agency; (iii) no
portion of the Premises will be used as a landfill or a dump; (iv) Tenant
will not install any underground tanks of any type; (v) Tenant will not
allow any surface or subsurface conditions to exist or come into existence that
constitute, or with the passage of time may 

 

 

constitute,
a public or private nuisance; and (vi) Tenant will not permit any
Hazardous Substances to be brought onto the Premises, except for the Permitted
Materials, and if so brought or found located thereon, the same shall be
immediately removed, with proper disposal, and all required clean-up procedures
shall be diligently undertaken by Tenant at its sole cost pursuant to all
Environmental Laws.  Landlord and
Landlord’s representatives shall have the right but not the obligation to enter
the Premises for the purpose of inspecting the storage, use and disposal of any
Permitted Materials to ensure compliance with all Environmental Laws.  Should it be determined, in Landlord’s sole
opinion, that any Permitted Materials are being improperly stored, used or
disposed of, then Tenant shall immediately take such corrective action as
requested by Landlord.  Should Tenant
fail to take such corrective action within twenty-four (24) hours, Landlord
shall have the right to perform such work and Tenant shall reimburse Landlord,
on demand, for any and all costs associated with said work.  If at any time during or after the term of
this Lease, the Premises is found to be contaminated with Hazardous Substances,
Tenant shall diligently institute proper and thorough clean-up procedures, at
Tenant’s sole cost Tenant agrees to indemnify and hold Landlord harmless from
all claims, demands, actions, liabilities, costs, expenses, damages, penalties
and obligations of any nature arising from or as a result of any contamination
of the Premises with Hazardous Substances, or otherwise arising from the use of
the Premises by Tenant.  The foregoing
indemnification and the responsibilities of Tenant shall survive the
termination or expiration of this Lease.

 

14.  INSPECTION. 
Landlord’s agents and representatives shall hare the right to enter the
Premises at any reasonable time during business hours (or at any time in case
of emergency) (i) to inspect the Premises, (ii) to make such repairs
as may be required or permitted pursuant to this Lease, and/or (iii) during
the last six (6) months of the Lease term, for the purpose of showing the
Premises.  In addition, Landlord shall
have the right to erect a suitable sign on the Premises stating the Premises
are available for lease.  Tenant shall
notify Landlord in writing at least thirty (30) days prior to vacating the
Premises and shall arrange to meet with Landlord for a joint inspection of the
Premises prior to vacating.  If Tenant
fails to give such notice or to arrange for such inspection, then Landlord’s
inspection of the Premises shall be deemed correct for the purpose of
determining Tenant’s responsibility for repairs and restoration of the Premises
and for purposes of calculating the amount to be deducted, if any, from the
Security Deposit.

 

15.  ASSIGNMENT AND SUBLETTING.  Tenant shall not have the right to sublet,
assign or otherwise transfer or encumber this Lease, or any interest therein,
without the prior written consent of Landlord. 
Any attempted assignment, subletting, transfer or encumbrance by Tenant
in violation of the terms and covenants of this paragraph shall be void and any
Transferee (as hereafter defined) shall be deemed to be a trespasser.  Any assignee, sublessee or transferee of
Tenant’s interest in this Lease (all such assignees, sublessees and transferees
being hereinafter referred to as Transferees”), by assuming Tenant’s
obligations hereunder, shall assume liability to Landlord for all amounts paid
to persons other than Landlord by such Transferees to which Landlord is
entitled or is otherwise in contravention of this Paragraph 15.  No assignment subletting or other transfer,
whether or not consented to by Landlord or permitted hereunder, shall relieve
Tenant of its liability under this Lease. 
If Tenant has failed to pay all or any portion of the Monthly Rent by
its due date, or if an Event of Default occurs, or if Landlord in good faith
deems the prospect of collecting the next payment of Monthly Rent to be
impaired, while the Premises or any part thereof are assigned or sublet, then
Landlord, in addition to any other remedies herein provided or provided by law,
may collect directly from such Transferee all rents 

 

 

payable
to the Tenant and apply such rent against any sums due or to become due to
Landlord hereunder.  No such collection
shall be construed to constitute a novation or a release of Tenant from the
further performance of Tenants obligations hereunder.  If Landlord consents to any subletting or
assignment by Tenant as hereinabove provided and any category of rent
subsequently received by Tenant under any such sublease is in excess of the
same category of rent payable under this Lease, or any additional consideration
is paid to Tenant by the assignee under any such assignment, then Landlord may,
at its option, declare such excess rents under any sublease or such additional
consideration for any assignment to be due and payable by Tenant to Landlord as
additional rent hereunder.  The following
shall additionally constitute an assignment of this Lease by Tenant for the
purposes of this Paragraph 15:  (i) if
Tenant is a corporation, any merger, consolidation, dissolution or liquidation,
or any change in ownership or power to vote of entity; (iii) the sale,
transfer, exchange, liquidation or other distribution of more than thirty
percent (30%) of Tenant’s assets, other than this Lease; or (iv) the
mortgage, pledge, hypothecation or other encumbrance of or grant of a security
interest by Tenant in this Lease, or of any of Tenant’s rights hereunder.

 

16.  CONDEMNATION.  If more than eighty percent (80%) of the
Premises are taken for any public or quasi-public use under governmental law,
ordinance or regulation, or by right of eminent domain or private purchase in
lieu thereof, and the taking prevents or materially interferes with the use of
the remainder of the Premises for the purpose for which they were leased to
Tenant, then this Lease shall terminate and the rent shall be abated during the
unexpired portion of this Lease, effective on the date of such taking.  If less than eighty percent (80%) of the
Premises are taken for any public or quasi-public use under any governmental
law, ordinance or regulation, or by right of eminent domain or private purchase
to lieu thereof, or if the taking does not prevent or materially interfere with
the use of the remainder of the Premises for the purpose for which they were
leased to Tenant then this Lease shall not terminate but the rent payable
hereunder during the unexpired portion of this Lease shall be reduced to such
extent as may be fair and reasonable under all of the circumstances.  All compensation awarded in connection with
or as a result of any of the foregoing proceedings (including any sum separately
designated or awarded as a value of the leasehold estate) shall be the property
of Landlord, and Tenant hereby assigns any interest in any such award to
Landlord; provided, however, Landlord shall have no interest in any award made
to Tenant for loss of business or goodwill or for the taking of Tenant’s trade
fixtures and personal property, if a separate award for such items is sought by
and made to Tenant.

 

17.  EXPIRATION; HOLDING OVER.  At the termination, of this Lease or of the
possessory rights of Tenant in the Premises pursuant to this Lease, by its
expiration or otherwise, Tenant shall immediately deliver possession of the
Premises to Landlord with all repairs and maintenance required herein to be
performed by Tenant completed.  In
addition the Premises shall be left broom-clean.  All trash, debris, and unaffixed or
unattached items that are permitted or required to be removed by Tenant from
the Premises shall be removed from the Premises. The Premises shall be left in
the same condition as it was in upon the completion of all Alterations and
Improvements, excepting only for reasonable wear and tear and for those items
which Landlord requires Tenant to remove from the Premises pursuant to the
terms of this Lease if, for any reason. 
Tenant retains possession of the Premises after the expiration or
termination of this Lease or of Tenant’s possessory rights in the Premises,
such possession shall be deemed to be a tenancy at will only, and all of the
other terms and provisions of this Lease shall be applicable 

 

 

during
such period, except that Tenant shall pay Landlord from time to time, upon
demand, as rental for the period of such possession, as amount equal to two (2) times
the rent in effect on the date of such termination of this Lease, computed on a
daily bass for each day of such period. 
No holding over by Tenant either with or without consent of Landlord,
shall operate to extend this Lease except as otherwise expressly provided.  The preceding provisions of
this Paragraph 17 shall not be construed as consent for Tenant to retain
possession of the Premises in the absence of written consent thereto by
Landlord.

 

18.  QUIET ENJOYMENT. Landlord represents that it
has the authority to enter into this Lease and that so long as Tenant pays all
amounts due hereunder and performs all other covenants and agreements herein
set forth, Tenant shall peaceably and quietly have, hold and enjoy the Premises
for the term hereof without hindrance or molestation from Landlord, subject to
the terms and provisions of this Lease.

 

19.  EVENTS OF DEFAULT.  The following events (herein individually
referred to as an “Event of Default”) each shall be deemed to be a default in
or breach of Tenant’s obligations under this Lease:

 

A.  Tenant shall fail to pay any installment of
the rent herein reserved when due, or any other payment or reimbursement to
Landlord required herein when due, and such failure shall continue for a period
of five (5) days from the date such payment was due.

 

B.  Tenant shall (i) vacate or abandon all or
a substantial portion of the Premises or (ii) fail to continuously operate
its business at the Premises for the permitted use set forth herein, in either
event whether or not Tenant is in default of the rental payments due under this
Lease.

 

C.  Tenant shall fail to discharge any lien
placed upon the Premises in violation of Paragraph 22 hereof within twenty (20)
days after any such lien or encumbrance is filed against the Premises.

 

D.  Tenant shall default in the performance of
any of its obligations under any other lease or agreement by Tenant with
Landlord, or from any person or entity affiliated with or related to Landlord
including Landlord’s property manager, if any, and same shall remain uncured
after the lapsing of any applicable cure periods provided for under such other
lease or agreement.

 

E.  Tenant shall fail to comply with any term,
provision or covenant of this Lease (other than those listed above in this
paragraph) and shall not cure such failure within twenty (20) days after
written notice thereof from Landlord.

 

20.  REMEDIES. 
Upon, each occurrence of an Event of Default, Landlord shall have the
option to pursue any one or more of the following remedies without any notice
or demand:

 

(a) 
Terminate this Lease;

 

(b) 
Enter upon and take possession of the Premises without terminating this Lease;

 

 

(c) 
Make such payments and/or take such action and pay and/or perform whatever
Tenant is obligated to pay or perform under the terms of this Lease, and Tenant
agrees that Landlord shall not be liable for any damages resulting to Tenant
from such action; and/or

 

(d) 
Alter all locks and other security devices at the Premises, with or without
terminating this Lease, and pursue, at Landlord’s option, one or more remedies
pursuant to this Lease, and Tenant hereby expressly agrees that Landlord shall
not be required to provide to Tenant the new key to the Premises, regardless of
hour, including Tenant’s regular business hours;

 

and
in any such event Tenant shall immediately vacate the Premises, and if Tenant
fails to do so, Landlord, without waiving any other remedy it may have, may
enter upon and take possession of the Premises and expel or remove Tenant and
any other person who may be occupying such Premises or any part thereof,
without being liable for prosecution or any claim of damages therefore.  The provisions of this Lease are intended to
supersede Section 93.002 of the Texas Property Code (and any successor
statute) and Tenant hereby expressly waives any and all rights and remedies
Tenant may have under Paragraph (g) of such Section 93.002.

 

A.  Damages Upon Termination.  If Landlord terminates this Lease, Tenant
shall be liable for and shall pay to Landlord the sum of all rental and other
payments owed to Landlord hereunder accrued to the date of such
termination.  Landlord and Tenant agree
that determining the actual amount of additional damages which Landlord will
incur will be extremely difficult to estimate because neither party can predict
the market conditions that will exist at the time of the termination.  In order to arrive at a reasonable forecast
of just compensation, Landlord and Tenant agree that, at Landlord’s option, and
if the termination occurred as a result of the occurrence of an Event of
Default under Paragraphs 19A, 19B, or 19E above, Tenant shall additionally pay
to Landlord immediately upon demand as liquidated damages, an amount equal to (i) the
present value of the total rental and other payments owed hereunder for the
remaining portion of the Lease term, calculated as if such term expired on the
date set forth in Paragraph 1, less (ii) the present value of the then
fair market rental for the Premises for such period.  Because of the difficulty of ascertaining
such value and In order to achieve a reasonable estimate of liquidated damages
hereunder, Landlord and Tenant stipulate and agree, for the purposes hereof,
that i) the present value discount rate shall be seven per cent (7%); and ii)
such fair market rental shall in no event exceed seventy-five percent (75%) of
the rental amount for such period set forth in Paragraph 2 above.  Unless Tenant has abandoned the Premises in
violation of this Lease, Tenant waives any claim or defense that the liquidated
damages provided for herein should be reduced or offset by the failure of
Landlord to mitigate, or exercise reasonable efforts to mitigate its damages,
whether pursuant to the provisions of Paragraph 20G below or otherwise.

 

B.  Damages Upon Repossession.  If Landlord repossesses the Premises without
terminating this Lease, Tenant, at Landlord’s option, shall be liable for and
shall pay Landlord on demand all rental and other payments owed to Landlord
hereunder, accrued to the date of such repossession, and shall additionally
timely pay as they accrue all amounts required to be paid by Tenant under the
Lease to Landlord until the date of expiration of the term as stated in
Paragraph 1, diminished by all amounts actually received by Landlord
through reletting the Premises during such remaining term (but only to the
extent of the rent herein reserved). 
Actions to collect amounts due by Tenant to Landlord under this
paragraph may be brought from time to time, on one or more occasions, without
the necessity of Landlord’s waiting until expiration of 

 

 

the
Lease term.  Unless Tenant has abandoned
the Premises in violation of this Lease, tenant waives any claim or defense
that the damages provided for herein should be reduced or offset by the failure
of Landlord to mitigate, or exercise reasonable efforts to mitigate its
damages, whether pursuant to the provisions of Paragraph 20G below or
otherwise.

 

C.  Costs of Reletting, Removing, Repairs and
Enforcement.  Upon an Event of
Default, in addition to any sum provided to be paid under this Paragraph 20,
Tenant also shall be liable for and shall pay to Landlord (i) brokers’
fees and all other costs and expenses incurred by Landlord in connection with
reletting the whole or any part of the Premises; (ii) the costs of
removing, storing or disposing of Tenant’s or any other occupant’s property
including communications cable; (iii) the costs of repairing, altering,
remodeling or otherwise putting the Premises into condition acceptable to a new
tenant or tenants including costs of inspection, location, tagging and/or
removing communications cable whether or not installed by Tenant; (iv) any
and all costs and expenses incurred by Landlord in effecting compliance with
Tenant’s obligations under this Lease; and (v) all reasonable expenses
incurred by Landlord in enforcing or defending Landlord’s rights and/or
remedies hereunder, including without limitation all reasonable attorneys’ fees
and all court costs incurred in connection with such enforcement or defense.

 

D.  Late Charges.  In the event Tenant fails to make any payment
due hereunder within five (5) days after such payment is due, including
without limitation any rental or escrow payment in order to help defray the
additional cost to Landlord for processing such late payments and not as
interest, Tenant shall pay to Landlord on demand a late charge in an amount
equal to five percent (5%) of such payment. The provision for such late charge
shall be in addition to all of Landlord’s other rights and remedies hereunder
or at law, and shall not be construed as liquidated damages or as limiting Landlord’s
remedies in any manner.

 

E.  Interest on Past Due Amounts.  If Tenant fails to pay any sum which at any
time becomes due to Landlord under any provision of this Lease as and when the
same becomes due hereunder, and such failure continues for ten (10) days
after the due date for such payment, then Tenant shall pay to Landlord Interest
on such overdue amounts from the date due until paid at an annual rate which
equals the lesser of (i) eighteen percent (18%) or (ii) the highest
rate then permitted by law.

 

F.  No Implied Acceptances or Waivers.  Exercise by Landlord of any one or more
remedies hereunder granted or otherwise available shall not be deemed to be an
acceptance by Landlord of Tenant’s surrender of the Premises, it being
understood that such surrender can be effected only by the written signed
agreement of Landlord.  Tenant and
Landlord further agree that forbearance by Landlord to enforce any of its
rights under this Lease or at law or in equity shall not be a waiver of
Landlord’s right to enforce any one or more of its rights, including any right
previously forborne, in connection with any existing or subsequent
default.  No re-entry or taking
possession of the Premises by Landlord shall be construed as an election on its
part to terminate this Lease, unless a written notice of such intention is
given to Tenant, and, notwithstanding any such relating or re-entry or taking
possession of the Premises, Landlord may at any time thereafter elect to
terminate this Lease for a previous default. 
Pursuit of any remedies hereunder shall not preclude the pursuit of any
other remedy herein provided or any other remedies provided by law, nor shall
pursuit of any remedy herein provided constitute a 

 

 

forfeiture
or waiver of any rent due to Landlord hereunder or of any damages occurring to
Landlord by reason of the violation of any of the terms, provisions and
covenants contained in this Lease. 
Landlord’s acceptance of any rent following an Event of Default
hereunder shall not be construed as Landlord’s waiver of such Event of
Default.  No waiver by Landlord of any
violation or breach of any of the terms, provisions and covenants of this Lease
shall be deemed or construed to constitute a waiver of any other violation or
default.

 

G.  Resetting of Premises.  In the event of any termination of this Lease
and/or repossession of the Premises for an Event of Default, Landlord shall use
reasonable efforts to relet the Premises and to collect rental after reletting,
with no obligation to accept any lessee that Landlord deems undesirable or to
expend any funds in connection with such reletting or collection of rents
therefrom.  Tenant shall not be entitled
to credit for of reimbursement of any proceeds of such reletting in excess of
the rental owed hereunder for the period of such reletting.  Landlord may re-let the whole or any portion
of the Premises, for any period, to any tenant and for any use or purpose.

 

H.  Landlord’s Default.  If Landlord fails to perform any of its
obligations hereunder within thirty (30) days after written notice from Tenant
specifying such failure, Tenant’s exclusive remedy shall be an action for
damages.  Unless and until Landlord fails
to  so cure any default after such
notice, Tenant shall not have any remedy or cause of action by reason
thereof.  All obligations of Landlord
hereunder will be construed as covenants, not conditions; and all such
obligations will be binding upon Landlord only during the period of its
possession of the premises and not thereafter. 
The term “Landlord” shall mean only the owner, for the time being, of
the Premises and, in the event of the transfer by such owner of its interest in
the Premises, such owner shall thereupon be released and discharged from all
covenants and obligations of the Landlord thereafter accruing, provided that
such covenants and obligations shall be binding during the Lease term upon each
new owner for the duration of such owner’s ownership.  Notwithstanding any other provision of this
Lease, Landlord shall not have any personal liability hereunder.  In the event of any breach or default by
Landlord in any term or provision of this Lease, Tenant agrees to look solely
to the equity or interest theft owned by Landlord in the Premises or the
Building; however, in no event shall any deficiency judgment or any money
judgment of any kind be sought or obtained against any Landlord.

 

I.  Tenant’s Personal Property.  If Landlord repossesses the Premises pursuant
to the authority herein granted, or if Tenant vacates or abandons all or any
part of the Premises, then, in addition to Landlord’s rights under Paragraph 27
hereof, Landlord shall have the right to (i) keep in place and use, or (ii) remove
and store, all of the furniture, fixtures equipment, and other property
(collectively “Stored Property”) at the Premises, including that which is owned
by or leased to Tenant, at all times prior to any foreclosure or other
disposition thereon by Landlord or repossession thereof by any lessor thereof
or third party having a lien thereon.  In
addition to the Landlord’s other rights hereunder, Landlord may dispose of the
Stored Property if Tenant does not claim the property within ten (10) days
after the date Landlord gives notice that it has taken possession of the Stored
Property pursuant to this Paragraph..  Landlord
shall give Tenant at least ten (10) days prior written notice of such
intended disposition.  Landlord shall
also have the right to relinquish possession of all or any portion of such
furniture, fixtures, equipment and other property to any person (“Claimant”)
who presents to Landlord a copy of any instrument represented by Claimant to
have been executed by Tenant (or any predecessor of Tenant) 

 

 

granting
Claimant the right under various circumstances to take possession of such
furniture, fixtures, equipment or other property, without the necessity on the
part of Landlord to inquire into the authenticity or legality of said
instrument. The rights of Landlord herein stated shall be in addition to any
and all other rights that Landlord has or may hereafter have at law or in
equity, and Tenant stipulates and agrees that the rights granted Landlord under
this paragraph are commercially reasonable. 
This Paragraph expressly supersedes subparagraph (e) of Section 93.002
of the Texas Property Code.

 

J.  Dispute Resolution.

 

i)                   Upon written
request of either Landlord or Tenant, any controversy or claim between or among
the parties hereto including but not limited to those arising out of or
relating to the Lease, any Guaranty, or any related agreements or instruments
executed in connection with the Lease (the “Lease Documents”), including
any claim based on or arising from an alleged tort, shall be determined by
binding arbitration, in accordance with the Federal Arbitration Act, the
Commercial Arbitration Rules of the American Arbitration Association, and
the “Special Rules” set forth below unless both Landlord and Tenant in their
respective sole discretion, agree in writing to mediate the dispute prior to
submitting to binding arbitration.  In
the event of any inconsistency, the Special Rules shall control.  Judgment upon any arbitration award may be
entered in any court having jurisdiction. 
Any party to this Agreement may bring an action, including a summary or
expedited proceeding, to compel arbitration of any controversy or claim to
which this agreement applies in any court having jurisdiction over such
action.  The party that requests
arbitration has the burden to initiate the arbitration proceedings pursuant to
and by complying with the Commercial Arbitration Rules of the American
Arbitration Association and shall pay all associated administrative and filing
fees.

 

ii)                          Special
Rules.  The arbitration shall be
conducted in the City of Austin, Travis County, Texas and administered by the
American Arbitration Association.  All
arbitration hearings will be commenced within one hundred twenty (120) days of
the written request for arbitration. 
Nothing in this Agreement shall be deemed to (i) limit the
applicability of any otherwise applicable statutes of limitation or repose and
any waivers contained in this Lease; or (ii) limit the right of Landlord
hereto (A) to exercise self help remedies such as (but not limited to)
lockout, eviction, or repossession or (B) to foreclose against any
collateral in accordance with applicable law, or (C) to obtain from a
court provisional or ancillary remedies such as (but not limited to) injunctive
relief.  Landlord may exercise such self
help remedies, foreclose upon such property, or obtain such provisional or ancillary
remedies before, during or after the pendency of any arbitration proceeding
brought pursuant to this Lease or any other Lease Document.  Neither this exercise of self help remedies
nor the institution or maintenance of an action for foreclosure or provisional
or ancillary remedies shall constitute a waiver of the right of any party,
including the claimant in any such action, to arbitrate the merits of the
controversy or claim occasioning resort to such remedies.

 

21.  MORTGAGES. 
Tenant accepts this Lease subject and subordinate to any mortgages
and/or deeds of trust now or at any time hereafter constituting a lien or
charge upon the Premises or the improvements situated thereon or the Building,
provided, however, that if the mortgagee, trustee or holder of any such
mortgage or deed of trust elects to have Tenant’s interest in this Lease
superior to any such instrument, then by notice to Tenant from such mortgagee,
trustee or holder, this Lease shall be deemed superior to such lien, whether
this Lease was executed before or after 

 

 

said
mortgage or deed of trust Tenant, at any time hereafter on demand, shall
execute any instruments, releases or other documents that may be required by
any mortgagee, trustee or holder for the purpose of subjecting and
subordinating this Lease to the lien of any such mortgage.  Tenant shall not terminate this Lease or
pursue any other remedy available to Tenant hereunder for any default on the
part of Landlord without first giving written notice by certified or registered
mail, return receipt requested, to any mortgagee, trustee or holder of any such
mortgage or deed of trust, the name and post office address of which Tenant has
received written notice, specifying the default in reasonable detail and
affording such mortgagee, trustee or holder a reasonable opportunity (but in no
event less than thirty (30) days) to make performance, at its election, for and
on behalf of Landlord.

 

22.  MECHANICS LIENS.  Tenant has no authority, express or implied,
to create or place or permit any lien or encumbrance of any kind or nature
whatsoever upon, or in any manner to bind, the interest of Landlord or Tenant
in the Premises.  Tenant acknowledges and
agrees that in connection with all Alterations to the Premises, i) Tenant does
not act as Landlord’s agent; ii) the Alterations are done solely for the
benefit of Tenant; and iii) the Alterations do not “enrich” Landlord because
they are specific to the needs of Tenant and therefore have little or no
intrinsic value to Landlord.  Tenant will
indemnify, defend, save and hold Landlord harmless from any and all loss, cost
or expense, including without limitation attorneys’ fees, based on or arising
out of asserted claims or liens against the leasehold estate or against the
right, title and interest of the Landlord in the Premises or under the terms of
this Lease.

 

23.  MISCELLANEOUS.

 

A.  Interpretation.  The captions inserted in this Lease are for
convenience only and in no way define, limit or otherwise describe the scope or
intent of this Lease, or any provision hereof, or in any way affect the
interpretation of this Lease.  Any
reference in this Lease to rentable area shall mean the gross rentable area as
determined by the roofline of the building in question.

 

B.  Binding Effect.  Except as otherwise herein expressly
provided, the terms, provisions and covenants and conditions in this Lease
shall apply to, inure to the benefit of and be binding upon the parties hereto
and upon their respective heirs, executors, personal representatives, legal
representatives, successors and assigns. 
Landlord shall have the right to transfer and assign, in whole or in
part, its rights and obligations in the Premises and in the Building and other
property that are the subject of this Lease.

 

C.  Evidence of Authority.  Tenant agrees to furnish to Landlord,
promptly upon demand, a corporate resolution, proof of due authorization by
partners or other appropriate documentation evidencing the due authorization of
such party to enter into this Lease.

 

D.  Force Majeure.  Landlord shall not be held responsible for
delays in the performance of its obligations hereunder when caused by material
shortages, acts of God, labor disputes or other events beyond the control of
Landlord.

 

E.  Payments Constitute Rent.  Notwithstanding anything in this Lease to the
contrary, all amounts payable by Tenant to or on behalf of Landlord under this
Lease, whether or not expressly denominated as rent, shall constitute rent.

 

 

F.  Estoppel Certificates.  Tenant agrees, from time to time, within ten (10) days
after request of Landlord, to deliver to Landlord, or Landlord’s designee, an
estoppel certificate stating that this Lease is in full force and effect, the
date to which rent has been paid, the unexpired term of this Lease, any
defaults existing under this Lease (or the absence thereof) and such other
factual or legal matters pertaining to this Lease as may be requested by
Landlord.  It is understood and agreed
that Tenant’s obligation to furnish such estoppel certificates in a timely
fashion is a material inducement for Landlord’s execution of this Lease.

 

G.  Entire Agreement.  This Lease constitutes the entire
understanding and agreement of Landlord and Tenant with respect to the subject
matter of this Lease, and contains all of the covenants and agreements of
Landlord and Tenant with respect thereto. 
Landlord and Tenant each acknowledge that no representations,
inducements, promises or agreements, oral or written, have been made by
Landlord or Tenant, or anyone acting on behalf of Landlord or Tenant, which are
not contained herein, and any prior agreements promises, negotiations or
representations (collectively “Representations”) not expressly set forth in
this Lease are of no force or effect. 
Tenant therefore acknowledges that it has not and may not rely on any
such Representations which alter or vary from the written terms of this
Lease.  EXCEPT AS SPECIFICALLY PROVIDED
IN THIS LEASE, TENANT HEREBY WAIVES THE BENEFIT OF ALL WARRANTIES, EXPRESS OR
IMPLIED, WITH RESPECT TO THE PREMISES, INCLUDING WITHOUT LIMITATION ANY IMPLIED
WARRANTY THAT THE PREMISES ARE SUITABLE FOR ANY PARTICULAR PURPOSE. Landlord’s
agents and employees (including any broker) do not and will not have authority
to make exceptions, changes or amendments to this Lease, or factual
representations not expressly contained in this Lease.  Under no circumstances shall Landlord or
Tenant be considered an agent of the other. 
This Lease may not be altered, changed or amended except by an
instrument in writing signed by both parties hereto.

 

H.  Survival of Obligations.  All obligations of Tenant hereunder not fully
performed as of the expiration or earlier termination of the term of this Lease
shall survive the expiration or earlier termination of the term hereof,
including without limitation all payment obligations with
respect to taxes and insurance and all obligations concerning the condition and
repair of the Premises.  Upon the
expiration or earlier termination of the term hereof, and prior to Tenant
vacating the Premises, Tenant shall pay to Landlord any amount reasonably
estimated by Landlord as necessary to put the Premises in good condition and
repair, reasonable wear and tear excluded, including without limitation the
cost of repairs to and replacements of all heating and air conditioning systems
and equipment therein.  Tenant shall
also, prior to vacating the Premises, pay to Landlord the amount, as estimated
by Landlord, of Tenant’s obligation hereunder for real estate taxes and
insurance premiums for the year in which the Lease expires or terminates.  All such amounts shall be used and held by
Landlord for payment of such obligations of Tenant hereunder, with Tenant being
liable for any additional costs therefore upon demand by Landlord, or with any
excess to be returned to Tenant after all such obligations have been determined
and satisfied, as the case may be.  Any
Security Deposit held by Landlord may, at Landlord’s option, be credited
against any amounts due from Tenant under this Paragraph 23H.

 

I.  Severability of Terms.  If any clause or provision of this Lease is
illegal, invalid or unenforceable under present or future laws effective during
the term of this Lease, then, in such 

 

 

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

 

J.  Effective Date.  All references in this Lease to “the date
hereof” or similar references shall be deemed to refer to the last date, in
point of time, on which all parties hereto have executed this Lease.

 

K.  Brokers’ Commission.  Tenant represents and warrants that it has
dealt with and will deal with no broker, agent or other person in connection
with this transaction or future related transactions and that no broker, agent
or other person brought about this transaction, and Tenant agrees to indemnify
and hold Landlord harmless from and against any claims by any broker, agent or
other person claiming a commission or other form of compensation by virtue of
having dealt with Tenant with regard to this leasing transaction.

 

L.  Ambiguity.  Landlord and Tenant hereby agree and
acknowledge that this Lease has been fully reviewed and negotiated by both
Landlord and Tenant, and that Landlord and Tenant have each had the opportunity
to have this Lease reviewed by their respective legal counsel, and,
accordingly, in the event of any ambiguity herein, Tenant does hereby waive the
role of construction that such ambiguity shall be resolved against the party
who prepared this Lease.

 

M.  Joint Several Liability.  If there be more than one Tenant, the
obligations hereunder imposed upon Tenant shall be joint and several.  If there be a guarantor of Tenant’s
obligations hereunder, the obligations hereunder imposed upon Tenant shall be
joint and several obligations of Tenant and such guarantor, and Landlord need
not first proceed against Tenant before proceeding against such guarantor, nor
shall any such guarantor be released from its guaranty for any reason
whatsoever, including, without limitation, in case of any amendments hereto,
waivers hereof or failure to give such guarantor any notices hereunder.

 

N.  Third Party Rights.  Nothing herein expressed or implied is
intended, or shall be construed, to confer upon or give to any person or
entity, other than the parties hereto, any right or remedy under or by reason
of this Lease.

 

O.  Exhibits and Attachments.  All exhibits, attachments, riders and addenda
referred to in this Lease, and the exhibits listed herein below and attached
hereto, are incorporated into this Lease and made a part hereof for all intents
and purposes as if fully set out herein. 
All capitalized terms used in such documents shall, unless otherwise
defined therein, have the same meanings as are set forth herein.

 

P.  Applicable Law.  This Lease has been executed in the State of
Texas and shall be governed in all respects by the laws of the State of
Texas.  It is the intent of Landlord and
Tenant to conform strictly to all applicable Sate and federal usury laws.  All agreements between Landlord and Tenant,
whether now existing or hereafter arising and whether written or oral, are
hereby expressly limited so that in no contingency or event whatsoever shall
the amount contracted for, charged or received by Landlord for the use,
forbearance or retention of money 

 

 

hereunder
or otherwise exceed the maximum amount which Landlord is legally entitled to
contract for, charge or collect under the applicable state or federal law.  If, from any circumstance whatsoever,
fulfillment of any provision hereof at the time performance of such provision
shall be due shall involve transcending the limit of validity prescribed by law,
then the obligation to be fulfilled shall be automatically reduced to the limit
of such validity, and if from any such circumstance Landlord shall ever receive
as interest or otherwise an amount in excess of the maximum that can be legally
collected, then such amount which would be excessive interest shall be applied
to the reduction of rent hereunder, and if such amount which would be excessive
interest exceeds such rent, then such additional amount shall be refunded to
Tenant.

 

24.  NOTICES. 
Each provision of this instrument or of any applicable governmental
laws, ordinances, regulations and other requirements with reference to the
sending, mailing or delivering of notice or the making of any payment by
Landlord to Tenant or with reference to the sending, mailing or delivering of
any notice or the making of any payment by Tenant to Landlord shall be deemed
to be complied with when and if the following steps are taken:

 

(i) 
All rent and other payments required to be made by Tenant to Landlord hereunder
shall be payable to Landlord at the address for Landlord set forth below or at
such other address as Landlord may specify from time to time by written notice
delivered in accordance herewith.  Tenant’s
obligation to pay rent and any other amounts to Landlord under the terms of
this Lease shall not be deemed satisfied until such rent and other amounts have
been actually received by Landlord.

 

(ii) 
All payments required to be made by Landlord to Tenant hereunder shall be
payable to tenant at the address set forth below, or at such other address
within the continental United States as Tenant may specify from time to time by
written notice delivered in accordance herewith.

 

(iii) 
Except as expressly provided herein, any written notice, document or payment required
or permitted to be delivered hereunder shall be deemed to be delivered when
received or, for notices or documents whether actually received or not, when
a)deposited in the United States Mail, postage  prepaid, Certified or Registered
Mail, addressed to the parties hereto at the respective address set out below,
or at such other address as they have theretofore specified by written notice
delivered in accordance herewith; or b) when  transmitted by facsimile machine
to the number indicted below, so long as a receipt has confirmed successful
transmission; or c)  when transmitted by email so long
as a receipt confirms receipt a the email address, or to the individual
designated for receipt below.

 

	
  Tangoe, Inc.

  	
  Live
  Oak-Gottesman

  
	
  9801
  Metric Blvd., Suite 100

  	
  300
  West Sixth Street, Suite 1900

  
	
  Austin,
  Texas 78758

  	
  Austin,
  Texas 78701

  
	
  FACSIMILE
  (203) 859-9322

  	
  FACSIMILE:
  512-472-5066

  
	
  ATTENTION:
  jennifer Davey

  	
  ATTENTION:
  Doug Thomas/Carolyn Griffin

  
	
  EMAIL:
  Jennifer.davey@tangoe.com

  	
  EMAIL:DOUG@LIVEOAK.COM/Carolyn@liveoak.com

  
	
  TELEPHONE:(512)
  344-0147

  	
  TELEPHONE:512-472-5000

  

 

25.  ADDITIONAL PROVISIONS. See EXHIBIT “C”
attached hereto and incorporated herein by reference.

 

 

27.  LANDLORD’S LIEN.  LANDLORD SHALL HAVE AND TENANT HEREBY GRANTS
TO LANDLORD A CONTINUING SECURITY INTEREST FOR ALL RENT AND OTHER SUMS OF MONEY
DUE OR TO BECOME DUE HEREUNDER FROM TENANT, UPON ALL GOODS, WARES, EQUIPMENT,
FIXTURES, FURNITURE, INVENTORY, ACCOUNTS, DOCUMENTS, GENERAL INTANGIBLES,
CHATTEL PAPER, DEPOSIT ACCOUNTS, DOCUMENTS, INSTRUMENTS, INVESTMENT PROPERTY
AND OTHER PERSONAL PROPERTY OF TENANT NOW OWNED OR HEREAFTER ACQUIRED
(COLLECTIVELY “COLLATERAL”) AND SITUATED (OR DOCUMENTS EVIDENCING SUCH
COLLATERAL KEPT) ON, AT, OR WITHIN THE PREMISES WHICH IS LOCATED AT 9801 Metric
Boulevard, Suite 100, Austin, Texas. SUCH COLLATERAL (OTHER THAN INVENTORY
SOLD IN THE ORDINARY COURSE OF BUSINESS PRIOR TO THE OCCURRENCE OF AN EVENT OF
DEFAULT) SHALL NOT BE REMOVED THEREFROM WITHOUT THE WRITTEN CONSENT OF
LANDLORD.  CASH, NON-CASH PROCEEDS, AND
PRODUCTS OF COLLATERAL ARE ALSO COVERED. IN THE EVENT OF A DEFAULT UNDER THIS
LEASE, LANDLORD SHALL HAVE IN ADDITION TO ANY OTHER REMEDIES PROVIDED HEREIN OR
BY LAW, ALL RIGHTS AND REMEDIES UNDER THE UNIFORM COMMERCIAL CODE,
INCLUDING WITHOUT LIMITATION THE RIGHT TO SELL THE PROPERTY DESCRIBED IN THIS
PARAGRAPH AT PUBLIC OR PRIVATE SALE UPON AT LEAST TEN (10) DAYS NOTICE TO
TENANT. TENANT HEREBY AGREES TO EXECUTE AND AUTHORIZES LANDLORD TO EXECUTE ON
ITS BEHALF SUCH OTHER INSTRUMENTS NECESSARY OR DESIRABLE IN LANDLORD’S
DISCRETION TO PERFECT THE SECURITY INTEREST HEREBY CREATED.  ANY STATUTORY LIEN FOR RENT IS NOT HEREBY
WAIVED, THE EXPRESS CONTRACTUAL LIEN HEREIN GRANTED BEING IN ADDITION AND
SUPPLEMENTARY THERETO.  LANDLORD AND
TENANT AGREE THAT THIS LEASE AND SECURITY AGREEMENT MAY SERVE AS A
FINANCING STATEMENT AND THAT A COPY OR PHOTOGRAPHIC OR OTHER REPRODUCTION OF
THIS PORTION OF THIS LEASE MAY BE FILED OF RECORD BY LANDLORD AND HAVE THE
SAME FORCE AND EFFECT AS THE ORIGINAL. LANDLORD IS FURTHER AUTHORIZED TO
PERFECT ITS SECURITY INTEREST IN ACCORDANCE WITH THEN APPLICABLE LAW.  THIS SECURITY AGREEMENT AND FINANCING
STATEMENT ALSO COVERS FIXTURES LOCATED AT THE PREMISES, AND MAY BE FILED
FOR RECORD IN THE REAL ESTATE RECORDS FOR THE COUNTY IN WHICH THE PREMISES ARE
LOCATED. TENANT WARRANTS THAT THE COLLATERAL SUBJECT TO THE SECURITY INTEREST
GRANTED HEREIN IS NOT PURCHASES OR USED BY TENANT FOR PERSONAL, FAMILY OR
HOUSEHOLD PURPOSES. TENANTS STATE OF ORGANIZATION IS Connecticut.  TENANT’S CHIEF EXECUTIVE OFFICES ARE LOCATED
IN Connecticut.

 

LANDLORD
AND TENANT ADDITIONALLY AGREE THAT THIS SECURITY INTEREST EXCLUDES INCIDENTAL
TANGIBLE PERSONAL PROPERTY (AS DETERMINED BY THE LANDLORD IN ITS REASONABLE
JUDGMENT TO HAVE NEGLIGIBLE NET MARKET VALUE IN THE EVENT OF DISPOSITION BY
SALE) 

 

 

LEFTR
OR ABANDONED UPON THE PREMISES FOLLOWING THE VACATING OR ABANDONMENT OF THE
PREMISES BY TENANT.

 

28.  MULTIPLE COUNTERPARTS.  This Lease may be signed in counterparts.  To expedite and facilitate the signing of this
Lease by the parties, any party may sign its respective signature and forward
that page electronically or by telecopy transmission to the other
parties.  The copy of any party’s
signature transmitted by e-mail or telecopy shall be deemed to be an adequate
substitute for the original page containing the signature.

 

EXECUTED
BY LANDLORD, this 12th day of December, 2008.

 

	
   

  	
  LANDLORD:

  
	
   

  	
  Met 10A-98, Ltd., a Texas limited partnership

  
	
   

  	
  By:

  	
  Met
  10W-97, Ltd., a Texas limited partnership, its General Partner

  
	
   

  	
  By:

  	
  ORI, Inc.,
  a Texas Corporation, General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/
  Ron Green

  
	
   

  	
  By:
  Ron Green

  
	
   

  	
  Title:
  CFO

  
	
   

  	
  Address:

  
	
   

  	
   

  
	
   

  	
   

  
	
  EXECUTED
  BY TENANT, this 12th day of January, 2009.

  	
   

  
	
   

  	
   

  
	
   

  	
  TENANT:

  
	
   

  	
   

  
	
   

  	
  Tangoe, Inc.

  
	
   

  	
  /s/
  Gary R. Martino

  
	
   

  	
  By:
  Gary R. Martino

  
	
   

  	
  Title:
  CFO

  
	
   

  	
  Address:

  	
  35
  Executive Blvd.

  
	
   

  	
   

  	
  Orange,
  CT 06477

  
	
   

  	
  Phone:

  	
  (203)
  231-3524

  
	
  EXHIBIT
  “A”

  	
  Description
  of Premises

  	
   

  
	
  EXHIBIT
  “C”

  	
  Additional
  Provisions

  	
   

  
					

 

 

EXHIBIT “A”

 

	
  BUILDING:

  	
  Metric
  Center, Building 10

  
	
   

  	
   

  
	
  LEGALDESCRIPTION:

  	
  Lot
  1, Block C less .812 ac, Metric Center East Subdivision

  
	
   

  	
   

  
	
  ADDRESS:

  	
  9801
  Metric Boulevard 

  Suite 100

  Austin,
  Texas 87858

  

 

 

Leased Premises, Suite 100,
21,600 SF

 

 

EXHBIT “B”

 

PLANS

 

Page intentionally
left blank.

 

 

EXHIBIT “C”

 

ADDITIONAL PROVISIONS

 

FREE
RENT

 

Tenant
shall have the right to occupy the premises commonly known as Metric 10W Suite 100,
rent free from April 1, 2009 to June 30, 2009.  However, all other terms, conditions and
covenants of the Lease shall remain in fill! force and effect during the
occupancy period except that no rental shall be due.

 

It
is agreed and understood that should Tenant default during the primary term of
this Lease Agreement, Tenant shall be responsible for repaying to Landlord a)
all free rent stated in the above paragraph, and b) all other obligations
required by the terms, covenants and conditions of this Lease Agreement.

 

During
the term of free rent, Tenant shall be responsible for paying all Tenant Costs
operating expenses unless otherwise noted in the Lease Agreement.

 

TENANT
FINISH ALLOWANCE

 

Landlord
shall provide Tenant with a Tenant Finish Allowance of Ninety-nine Thousand,
Three Hundred, Sixty and no/100 Dollars ($99,360.00) towards Tenant’s costs
related to construction of the improvements (including, without limitation,
space planning costs, architectural and engineering fees, general contractor
fees, wiring/cabling expenses, moving expenses and other similar fees and
expenses).  Tenant shall bear the entire
cost of any interior improvements to be installed by Landlord in the premises
in excess of the finish-out allowance of Ninety-nine Thousand, Three Hundred
Sixty and no/100 Dollars ($99,360.00)  and
shall pay for such excess over the Allowance as hereinafter provided.  In the event Landlord is to construct fee
interior improvements and the estimated cost for same exceeds the Allowance,
Tenant shall pay to Landlord (assuming Landlord’s approval of the working
drawings referred to herein) prior to commencement of such construction, an
advance payment equal to one-half (1/2) of the amount of such excess over the
Allowance as reasonably estimated by Landlord. 
Notwithstanding any provision contained herein to the contrary, it is
understood and agreed that Landlord shall have no obligation to commence
installation of any interior improvements until (a) Tenant shall have
furnished to Landlord and Landlord shall have approved the final working
drawings as required by the provision hereof, (b) Landlord shall have
received Tenant’s advance payment (described above) for the amount of the cost
of improvements in excess of the Allowance and (e) Landlord and Tenant
shall have approved the total cost of any change order.  Upon Substantial Completion of the
installation of the interior improvements and prior to occupancy by Tenant,
Tenant shall pay Landlord the remainder of the actual amount of the excess cost
incurred over the Allowance.  In no event
shall credit be given to Tenant for any Allowance not utilized.

 

 

FIRST AMENDMENT TO THE LEASE AGREEMENT BETWEEN 

MET 10A-98, LTD., A TEXAS LIMITED PARTNERSHIP, AS
LANDLORD, AND

TANGOE, INC., AS TENANT

 

To
be attached to and form a part of Lease made the 12th day of
January, 2009 (which together with any amendments, modifications and extensions
thereof, is hereinafter called the Lease), between Landlord and Tenant,
covering a total of 21,600 square feet and located at 9801 Metric Blvd., Suite 100,
Austin, Texas, known as Metric 10W.

 

1.             Witnesseth that Paragraph 2A
of the Lease is hereby amended to delete the below statement:

 

2.             BASE RENT, SECURITY DEPOSIT
AND ESCROW DEPOSITS.

 

A.            Base Rent.  Tenant agrees to pay Landlord rent for the
Premises, in advance, without demand, deduction or set off, at the rate of

 

	
  Months

  	
   

  	
  Base Rental Rate PSF/Mo.

  	
   

  	
  Total Base 

  Monthly Rent

  	
   

  
	
  01-03

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  
	
  04-24

  	
   

  	
  $

  	
  0.61

  	
   

  	
  $

  	
  14,040.00

  	
   

  
	
  25-36

  	
   

  	
  $

  	
  0.66

  	
   

  	
  $

  	
  15,120.00

  	
   

  
	
  37-48

  	
   

  	
  $

  	
  0.71

  	
   

  	
  $

  	
  16,200.00

  	
   

  
	
  49-63

  	
   

  	
  $

  	
  0.76

  	
   

  	
  $

  	
  17,280.00

  	
   

  

 

per month during the term
hereof. One such monthly installment, plus the other monthly charges set forth
in Paragraph 2C below, shall be due and payable on the date hereof, and a like
monthly installment shall be due and payable on or before the first day of each
calendar month succeeding the Commencement Date, except that all payments due
hereunder for any fractional calendar month shall be prorated.

 

And be replaced with:

 

2.             BASE RENT, SECURITY DEPOSIT
AND ESCROW DEPOSITS.

 

A.            Base Rent.  Tenant agrees to pay Landlord rent for the
Premises, in advance, without demand, deduction or set off, at the rate of

 

 

	
  Months

  	
   

  	
  Base Rental Rate PSF/Mo.

  	
   

  	
  Total Base 

  Monthly Rent

  	
   

  
	
  01-03

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  
	
  04-24

  	
   

  	
  $

  	
  0.61

  	
   

  	
  $

  	
  13,176.00

  	
   

  
	
  25-36

  	
   

  	
  $

  	
  0.66

  	
   

  	
  $

  	
  14,256.00

  	
   

  
	
  37-48

  	
   

  	
  $

  	
  0.71

  	
   

  	
  $

  	
  15,336.00

  	
   

  
	
  49-63

  	
   

  	
  $

  	
  0.76

  	
   

  	
  $

  	
  16,416.00

  	
   

  

 

per month during the term
hereof.  One such monthly installment,
plus the other monthly charges set forth in Paragraph 2C below, shall be due
and payable on the date hereof, and a like monthly installment shall be due and
payable on or before the first day of each calendar month succeeding the
Commencement Date, except that all payments due hereunder for any fractional
calendar month shall be prorated.

 

2.             To expedite and facilitate
the signing of this Lease by the parties, any Party may sign its respective
signature and forward that page electronically or by telecopy transmission
to the other parties.  The copy of any
party’s signature transmitted by e-mail or telecopy shall be deemed to be an
adequate substitute for the original page containing the signature.

 

 

Except as herein and hereby
modified and amended the Agreement of Lease shall remain in full force and
effect and ail the terms, provisions, covenants and conditions thereof are
hereby ratified and confirmed.

 

DATED AS OF THE
                
DAY OF March, 2009.

 

	
   

  	
  LANDLORD:
  

  Met
  10A-98, Ltd., a Texas limited partnership

  
	
   

  	
  By:

  	
  Met
  10W-97, Ltd., a Texas limited partnership, its General Partner

  
	
   

  	
  By:

  	
  ORI, Inc.,
  a Texas Corporation, General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Ron Greene

  
	
   

  	
  Name:

  	
  Ron
  Greene

  
	
   

  	
  Title:

  	
  CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TENANT
  

  Tangoe, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Gary R. Martino

  
	
   

  	
  Name:

  	
  Gary
  R. Martino

  
	
   

  	
  Title:

  	
  CFO

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