Document:

EX-10.3 FORM OF NONSTATUTORY STOCK OPTION GRANT

 

EXHIBIT 10.3

AuthenTec, Inc.

Stock Option Certificate

THIS CERTIFIES THAT (the “Optionee”) has been awarded under the AuthenTec, Inc. 2004
Stock Incentive Plan (the “Plan”), nonstatutory stock options (each, an “Option” or collectively,
the “Options”) to purchase            shares of Common Stock, par value $0.01 per share (“Common Stock”)
of AuthenTec, Inc., a Delaware corporation (the
“Company”), at a price of
$               per share (the
“Exercise Price”). This Certificate constitutes part of and is subject to the terms and provisions
of the attached Nonstatutory Stock Option Grant Agreement (the “Agreement”), which is incorporated
by reference herein.

Grant Date:

Expiration Date: The Options expire at 5:00 p.m. Eastern Time on the last business day
coincident with or prior to the tenth anniversary of the Grant Date (the “Expiration Date”), unless
fully exercised or terminated earlier.

Vesting Schedule: The Options vest and become exercisable in accordance with the vesting
schedule below, subject to the terms and conditions described in the Agreement:

	 	(a)	 	25% of the Options vest and become exercisable on the first anniversary
of the Grant Date (the “Initial Vesting Date”), and
	 
	 	(b)	 	1/48th of the Options vest and become exercisable on the
date one month after the Initial Vesting Date and on such date every month
thereafter, through the fourth anniversary of the Grant Date.

The extent to which the Options are vested and exercisable as of a particular vesting date is
rounded down to the nearest whole share. However, vesting is rounded up to the nearest whole share
on the fourth anniversary of the Grant Date.

     IN WITNESS WHEREOF, the Company has caused this Certificate to be executed by its duly authorized
officer on this                                  day of                       , 20 .

	 	 	 	 	 
	 	AUTHENTEC, INC.:

 	 
	 	By:  	 
 	 
	 	 	 	 
	 	 	 	 
	 

The undersigned hereby acknowledges that he/she has carefully read the attached Agreement and the
Plan and agrees to be bound by all of the provisions set forth in such documents.

	 	 	 	 	 
	 	OPTIONEE:

 	 
	 	By:  	 
 	 
	 	 	 	 
	 	Date:  	 
 	 
	 

			
	Enclosures:	 	Nonstatutory Stock Option Grant Agreement

AuthenTec, Inc. 2004 Stock Incentive Plan

Stock Restriction Agreement

Exercise Form

 

 

Nonstatutory Stock Option Grant Agreement

Under The

AuthenTec, Inc. 2004 Stock Incentive Plan

     1. Terminology. All capitalized words that are not defined in this Agreement have the
meanings ascribed to them in the Plan. For purposes of this Agreement, the terms below have the
following meanings:

          (a) “Cause” has the meaning ascribed to such term or words of similar import in the Optionee’s
written employment or service contract with the Company and, in the absence of such agreement or
definition, means the Optionee’s (i) material breach of any written employment, consulting,
advisory, proprietary information, nondisclosure or other agreement with the Company and his or her
subsequent failure to cure such breach to the satisfaction of the Board within thirty (30) days
following written notice of such breach to the Employee by the Company; (ii) conviction of, or
entry of a plea of guilty or nolo contendere to, a felony or any misdemeanor involving moral
turpitude if the Board reasonably determines that such conviction or plea materially adversely
affects the Company; (iii) commission of an act of fraud or dishonesty by the Employee if the Board
reasonably determines that such act materially adversely affects the Company; or (iv) intentional
damage or destruction of substantial property of the Company. The determination of “cause” shall
be made by the Board and its determination shall be final and conclusive.

          (b) “Change in Control” means: the earliest to occur of (i) a merger or consolidation to
which the Company is a party and which results in, or is effected in connection with, a change in
ownership of a majority of the outstanding shares of voting stock of the Company, (ii) any sale or
transfer of all or substantially all of the assets of the Company to an unaffiliated third party,
(iii) the sale by the stockholders of the Company of a majority of the voting stock of the Company
to an unaffiliated third party or (iv) a liquidation or dissolution of the Company.

          (c) “Company” includes AuthenTec, Inc. and its Affiliates, except where the context otherwise
requires.

          (d) “Good Reason” has the meaning ascribed to such term or words of similar import in the
Optionee’s written employment or service contract with the Company and, in the absence of such
agreement or definition, means any of the following that occurs coincident with or following a
Change in Control, if not cured and corrected by the Company or its successor within 10 business
days after written notice thereof by the Optionee to the Company or its successor: (i) any change
in the Optionee’s title or position that constitutes a material diminution in authority as compared
to the authority of the Optionee’s title or position immediately prior to the occurrence of the
Change in Control; (ii) any material reduction in the Optionee’s annual base salary as in effect on
the effective date of the Change in Control; (iii) a substantial diminution in the Optionee’s
duties and responsibilities (other than a change due to the Optionee’s Total and Permanent
Disability or as an accommodation under the Americans With Disabilities Act); or (iv) any
requirement that the Optionee relocate, by more than 100 miles, the principal location from which
he performs services for the Company as compared to such location immediately prior to the
occurrence of the Change in Control; provided, however, that no diminution of
title, position, duties or responsibilities shall be deemed to occur solely because the Company
becomes a subsidiary of another corporation or entity or because there has been a change in the
reporting hierarchy incident thereto involving the Optionee.

          (e) “Option Shares” mean the shares of Common Stock underlying the Options.

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          (f) “Total and Permanent Disability” means the inability to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment which can be
expected to result in death or which has lasted or can be expected to last for a continuous period
of not less than twelve months. The Administrator may require such proof of Total and Permanent
Disability as the Administrator in its sole discretion deems appropriate and the Administrator’s
good faith determination as to whether the Optionee is totally and permanently disabled will be
final and binding on all parties concerned.

     2. Vesting.

          (a) The Options vest in accordance with the vesting schedule identified in the Stock Option
Certificate which is attached hereto and constitutes a part of the Agreement (the “Vesting
Schedule”), so long as the Optionee is in the continuous employ of, or in a service relationship
with, the Company from the Grant Date through the applicable date upon which vesting is scheduled
to occur. No vesting will accrue to any Options after the Optionee ceases to be in either an
employment or other service relationship with the Company.

          (b) Except to the extent that the Options have earlier terminated, the lesser of 25% of the
Options or the remaining unvested Options, shall become fully vested upon the termination date of
the Optionee’s employment or other service relationship with the Company if (i) the Company or its
successor terminates the Optionee without Cause or the Optionee terminates with Good Reason, and
(ii) such termination occurs coincident with or within one year following a Change in Control.

          (c) Unless the Options have earlier terminated, if before the Optionee has vested in any
Options, his or her employment or other service relationship with the Company terminates due to
death or Total and Permanent Disability, then as of such termination a number of Options will be
vested equal to (i) the total number of Options granted under this Agreement as specified on the
Stock Option Certificate, multiplied by (ii) 25%, multiplied by (iii) a fraction, the numerator of
which is the total number of days measured from the Optionee’s date of hire to the date that the
employment or other service relationship ceased and the denominator of which is 365.

     3. Exercise of Options.

          (a) Right to Exercise. The Optionee may exercise the Options to the extent vested at
any time on or before the Expiration Date or the earlier termination of the Options, unless
otherwise provided in this Agreement. Section 4 below describes certain limitations on exercise of
the Options that apply in the event of the Optionee’s death, Total and Permanent Disability, or
termination of employment or other service relationship with the Company. The Options may be
exercised only in multiples of whole shares and may not be exercised at any one time as to fewer
than one hundred shares (or such lesser number of shares as to which the Options are then
exercisable). No fractional shares will be issued under the Options.

          (b) Exercise Procedure. In order to exercise the Options, the following items must be
delivered to the Secretary of the Company before the expiration or termination of the Options: (i)
an exercise notice, in such form as the Administrator may require from time to time, specifying the
number of Option Shares to be purchased, (ii) full payment of the Exercise Price for such Option
Shares or properly executed, irrevocable instructions, in such form as the Administrator may
require from time to time, to effectuate a broker-assisted cashless exercise, each in accordance
with Section 3(c) of this Agreement, and (iii) an executed copy of any other agreements requested
by the Administrator pursuant to Section 3(d) of this Agreement. An exercise will not be effective
until all of the foregoing items are received by the Secretary of the Company.

          (c) All Shares acquired by the Optionee upon exercise of the Option, whether before or after
termination of the Optionee’s employment with the Company or a related corporation, and all other
Shares or other securities of the Company issued as a dividend on such Shares or as a result of a
stock

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split, recapitalization or similar transaction shall be considered acquired upon exercise of
the Option and shall be subject to and Optionee agrees:

     a. that all Shares shall be deposited in and made subject to the terms and
conditions of that certain Voting Trust Agreement in the form attached hereto as
Schedule B (the “Voting Trust Agreement”) to be held for the benefit of the Optionee
pursuant to the terms thereof; and

     b. in addition to any other legend required by law or agreement, each
certificate evidencing the Shares now or hereafter owned by the Optionee, his or her
successors, and assigns, shall be stamped or otherwise imprinted with a legend to
the following effect:

SALE, TRANSFER, OR HYPOTHECATION OF THE SHARES REPRESENTED BY THIS
CERTIFICATE IS RESTRICTED BY THE PROVISIONS OF THE EMPLOYEE STOCK OPTION
AGREEMENT AMONG THE UNDERSIGNED AND THE COMPANY, A COPY OF WHICH MAY BE
INSPECTED AT THE PRINCIPAL OFFICE OF THE COMPANY, AND ALL THE PROVISIONS OF
WHICH ARE INCORPORATED BY REFERENCE IN THIS CERTIFICATE. THE AGREEMENT
PROVIDES, AMONG OTHER THINGS, FOR TRANSFER RESTRICTIONS AND SUBJECTS THE
SHARES TO A VOTING TRUST AGREEMENT BY ACCEPTING THE SHARES OF STOCK
EVIDENCED BY THIS CERTIFICATE THE HOLDER OF THIS CERTIFICATE AGREES TO BE
BOUND BY SAID AGREEMENTS.

          A copy of this Agreement shall be delivered to the Secretary of the Company, and shall be
shown to any shareholder making inquiry about it.

          (d) Method of Payment. Payment of the Exercise Price may be made by delivery of cash,
certified or cashier’s check, money order or other cash equivalent acceptable to the Administrator
in its discretion, a broker-assisted cashless exercise in accordance with Regulation T of the Board
of Governors of the Federal Reserve System through a brokerage firm approved by the Administrator,
or a combination of the foregoing. In addition, payment of the Exercise Price may be made by any
of the following methods, or a combination thereof, as determined by the Administrator in its
discretion at the time of exercise:

     (i) by tender (via actual delivery or attestation) to the Company of other shares of
Common Stock of the Company which have a Fair Market Value on the date of tender equal to
the Exercise Price, provided that such shares have been owned by the
Optionee for a period of at least six months free of any substantial risk of forfeiture or
were purchased on the open market without assistance, direct or indirect, from the Company;

     (ii) by withholding of Option Shares otherwise issuable pursuant to the exercise which
have a Fair Market Value on the date of exercise equal to the Exercise Price; or

     (iii) by any other method approved by the Administrator.

          (e) Agreement by Optionee to Execute Other Agreements. The Optionee hereby agrees to
execute, as a condition precedent to the exercise of the Options and at any time thereafter as may
reasonably be requested by the Administrator, a Voting Trust Agreement, substantially in the form,
and containing the terms and provisions, of the Voting Trust Agreement attached hereto as Exhibit
B, with respect to any Option Shares acquired by the Optionee pursuant to this Agreement;
provided, however, that execution of the Voting Trust Agreement will not be
required upon any exercise of the Options that occurs after the closing of the first public
offering of capital stock of the Company that is effected pursuant to a registration statement
filed with, and declared effective by, the Securities and Exchange Commission under the Securities
Act of 1933 or, if later, the expiration of any market stand-off

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agreement that applies to other shareholders of the Company respecting such public offering of
capital stock.

          (f) Issuance of Shares upon Exercise. Upon exercise of the Options in accordance with
the terms of this Agreement, the Company will issue to the Optionee, the brokerage firm specified
in the Optionee’s delivery instructions pursuant to a broker-assisted cashless exercise, or such
other person exercising the Options, as the case may be, the number of shares of Common Stock so
paid for, in the form of fully paid and nonassessable stock. The Company will deliver stock
certificates for the Option Shares as soon as practicable after exercise, which certificates will,
unless such Option Shares are registered or an exemption from registration is available under
applicable federal and state law, bear a legend restricting transferability of such shares and
referencing any applicable Stock Restriction Agreement.

     4. Termination of Employment or Service.

          (a) Exercise Period Following Cessation of Employment or Other Service Relationship, In
General. If the Optionee ceases to be employed by, or in a service relationship with, the
Company for any reason other than death, Total and Permanent Disability, or discharge for Cause,
(i) the unvested Options, after giving effect to the provisions of Section 2 of this Agreement,
terminate immediately upon such cessation, and (ii) the vested Options remain exercisable during
the 30-day period following such cessation, but in no event after the Expiration Date. Unless
sooner terminated, the vested Options terminate upon the expiration of such 30-day period.

          (b) Disability of Optionee. Notwithstanding the provisions of Section 4(a) above, if
the Optionee ceases to be employed by, or in a service relationship with, the Company as a result
of the Optionee’s Total and Permanent Disability, (i) the unvested Options, after giving effect to
the provisions of Section 2 of this Agreement, terminate immediately upon such cessation, and (ii)
the vested Options remain exercisable during the one-year period following such cessation, but in
no event after the Expiration Date. Unless sooner terminated, the vested Options terminate upon
the expiration of such one-year period.

          (c) Death of Optionee. If the Optionee dies prior to the expiration or other
termination of the Options, (i) the unvested Options, after giving effect to the provisions of
Section 2 of this Agreement, terminate immediately upon the Optionee’s death, and (ii) the vested
Options remain exercisable during the one-year period following the Optionee’s death, but in no
event after the Expiration Date, by the Optionee’s executor, personal representative, or the
person(s) to whom the Options are transferred by will or the laws of descent and distribution.
Unless sooner terminated, the vested Options terminate upon the expiration of such one-year period.

          (d) Misconduct. Notwithstanding anything to the contrary in this Agreement, the
Options terminate in their entirety, regardless of whether the Options are vested, immediately upon
the Optionee’s discharge of employment or other service relationship for Cause or upon the
Optionee’s commission of any of the following acts during any period following the cessation of
employment or other service relationship during which the Options otherwise would be exercisable:
(i) fraud on or misappropriation of any funds or property of the Company, or (ii) breach by the
Optionee of any provision of any employment, non-disclosure, non-competition, non-solicitation,
assignment of inventions, or other similar agreement executed by the Optionee for the benefit of
the Company, as determined by the Administrator, which determination will be conclusive.

     5. Market Stand-Off Agreement. The Optionee agrees that following the effective date
of a registration statement of the Company filed under the Securities Act of 1933, the Optionee,
for the duration specified by and to the extent requested by the Company and an underwriter of
Common Stock or other securities of the Company, shall not offer, sell, contract to sell, pledge or
otherwise dispose of, directly or indirectly, any equity securities of the Company, or any
securities convertible into or exchangeable or exercisable for such securities, enter into a
transaction which would have the same effect, or enter into any swap, hedge or other arrangement
that transfers, in whole or in part, any of the

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economic consequences of ownership of such securities, whether any such aforementioned
transaction is to be settled by delivery of such securities or other securities, in cash or
otherwise, or publicly disclose the intention to make any such offer, sale, pledge or disposition,
or to enter into any such transaction, swap, hedge or other arrangement, in each case during the
seven days prior to and the 180 days after the effectiveness of any underwritten offering of the
Company’s equity securities (or such longer or shorter period as may be requested in writing by the
managing underwriter and agreed to in writing by the Company) (the “Market Stand-Off Period”),
except as part of such underwritten registration if otherwise permitted. In addition, the Optionee
agrees to execute any further letters, agreements and/or other documents requested by the Company
or its underwriters which are consistent with the terms of this Section 5. The Company may impose
stop-transfer instructions with respect to securities subject to the foregoing restrictions until
the end of such Market Stand-Off Period.

     6. Nontransferability of Options. These Options are nontransferable otherwise than by
will or the laws of descent and distribution and during the lifetime of the Optionee, the Options
may be exercised only by the Optionee or, during the period the Optionee is under a legal
disability, by the Optionee’s guardian or legal representative. Except as provided above, the
Options may not be assigned, transferred, pledged, hypothecated or disposed of in any way (whether
by operation of law or otherwise) and shall not be subject to execution, attachment or similar
process.

     In the event the employment or other service relationship of the Optionee with the Company or
a related corporation is terminated for Cause, the Company shall have an irrevocable exclusive
option for a period ending 60 days after such termination to repurchase any or all Shares acquired
upon exercise of the Option and held by the Optionee at such time at a price equal to the original
price per Option Share paid by the Optionee (as adjusted for subsequent stock splits, stock
dividends or similar transactions).

     7. Nonstatutory Nature of the Options. The Options are not intended to
qualify as incentive stock options within the meaning of Code section 422, and this Agreement shall
be so construed. The Optionee acknowledges that, upon exercise of the Options, the Optionee will
recognize taxable income in an amount equal to the excess of the then Fair Market Value of the
Option Shares over the Exercise Price and must comply with the provisions of Section 8 of this
Agreement with respect to any tax withholding obligations that arise as a result of such exercise.

     8. Withholding of Taxes. At the time the Options are exercised, in whole or in part,
or at any time thereafter as requested by the Company, the Optionee hereby authorizes withholding
from payroll or any other payment of any kind due the Optionee and otherwise agrees to make
adequate provision for foreign, federal, state and local taxes required by law to be withheld, if
any, which arise in connection with the Options. The Company may require the Optionee to make a
cash payment to cover any withholding tax obligation as a condition of exercise of the Options or
issuance of share certificates representing Option Shares.

     The Administrator may, in its sole discretion, permit the Optionee to satisfy, in whole or in
part, any withholding tax obligation which may arise in connection with the Options either by
electing to have the Company withhold from the shares to be issued upon exercise that number of
shares, or by electing to deliver to the Company already-owned shares, in either case having a Fair
Market Value equal to the amount necessary to satisfy the statutory minimum withholding amount due.

     9. Adjustments for Corporate Transactions and Other Events.

          (a) Stock Dividend, Stock Split and Reverse Stock Split. Upon a stock dividend of, or
stock split or reverse stock split affecting, the Common Stock, the number of shares covered by and
the exercise price and other terms of the Options, shall, without further action of the Board, be
adjusted to reflect such event unless the Board determines, at the time it approves such stock
dividend, stock split or reverse stock split, that no such adjustment shall be made. The
Administrator may make adjustments, in

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its discretion, to address the treatment of fractional shares and fractional cents that arise
with respect to the Options as a result of the stock dividend, stock split or reverse stock split.

          (b) Non-Change in Control Transactions. Except with respect to the transactions set
forth in Section 9(a), in the event of any change affecting the Common Stock, the Company or its
capitalization, by reason of a spin-off, split-up, dividend, recapitalization, merger,
consolidation or share exchange, other than any such change that is part of a transaction resulting
in a Change in Control, the Administrator, in its discretion and without the consent of the
Optionee, shall make any adjustments in the Options, including but not limited to modifying the
number, kind and price of securities subject to the Options.

          (c) Change in Control Transactions. In the event of any transaction resulting in a
Change in Control, the Options will terminate upon the effective time of any such Change in Control
unless provision is made in connection with the transaction in the sole discretion of the parties
thereto for the continuation or assumption of the Options, or the substitution of the Options with
new options of the surviving or successor entity or a parent thereof. In the event of such
termination, (A) the outstanding Options that will terminate upon the effective time of the Change
in Control shall become fully vested immediately before the effective time of the Change in
Control, and (B) the Optionee will be permitted, immediately before the Change in Control, to
exercise all portions of such Options that are then exercisable or which become exercisable upon or
prior to the effective time of the Change in Control. If, immediately before the Change in
Control, no stock of the Company is readily tradeable on an established securities market or
otherwise, and the vesting of the Options pursuant to this Section 9(c) would be treated as a
“parachute payment” (as defined in section 280G of the Code), then such Options shall not vest
unless the requirements of the shareholder approval exemption of section 280G(b)(5) of the Code
have been satisfied with respect to such Options.

          (d) Adjustments for Unusual Events. The Administrator is authorized to make, in its
discretion and without the consent of the Optionee, adjustments in the terms and conditions of, and
the criteria included in, the Options in recognition of unusual or nonrecurring events affecting
the Company, or the financial statements of the Company or any Affiliate, or of changes in
applicable laws, regulations, or accounting principles, whenever the Administrator determines that
such adjustments are appropriate in order to prevent dilution or enlargement of the benefits or
potential benefits intended to be made available under the Options or the Plan.

          (e) Binding Nature of Adjustments. Adjustments under this Section 9 will be made by
the Administrator, whose determination as to what adjustments, if any, will be made and the extent
thereof will be final, binding and conclusive. No fractional shares will be issued pursuant to the
Options on account of any such adjustments. The terms and conditions of this Agreement shall apply
with equal force to any additional and/or substitute securities received by the Optionee pursuant
to this Section 9 in exchange for, or by virtue of the Optionee’s ownership of, the Options or the
Option Shares, except as otherwise determined by the Administrator.

     10. Confidential Information. In consideration of the Options granted to the Optionee
pursuant to this Agreement, the Optionee agrees and covenants that, except as specifically
authorized by the Company, the Optionee will keep confidential any trade secrets or confidential or
proprietary information of the Company which are now or which hereafter may become known to the
Optionee as a result of the Optionee’s employment by or other service relationship with the
Company, and shall not at any time, directly or indirectly, disclose any such information to any
person, firm, Company or other entity, or use the same in any way other than in connection with the
business of the Company, at all times during and after the Optionee’s employment or other service
relationship. The provisions of this Section 10 shall not narrow or otherwise limit the
obligations and responsibilities of the Optionee set forth in any agreement of similar import
entered into between the Optionee and the Company.

     11. Non-Guarantee of Employment or Service Relationship. Nothing in the Plan or this
Agreement shall alter the at-will or other employment status or other service relationship of the
Optionee, nor be construed as a contract of employment or service relationship between the Company
and the

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Optionee, or as a contractual right of Optionee to continue in the employ of, or in a service
relationship with, the Company for any period of time, or as a limitation of the right of the
Company to discharge the Optionee at any time with or without cause or notice and whether or not
such discharge results in the failure of any Options to vest or any other adverse effect on the
Optionee’s interests under the Plan.

     12. No Rights as a Stockholder. The Optionee shall not have any of the rights of a
stockholder with respect to the Option Shares until such shares have been issued to him or her upon
the due exercise of the Options. No adjustment shall be made for dividends or distributions or
other rights for which the record date is prior to the date such shares are issued.

     13. The Company’s Rights. The existence of the Options shall not affect in any way
the right or power of the Company or its stockholders to make or authorize any or all adjustments,
recapitalizations, reorganizations or other changes in the Company’s capital structure or its
business, or any merger or consolidation of the Company, or any issue of bonds, debentures,
preferred or other stocks with preference ahead of or convertible into, or otherwise affecting the
Common Stock or the rights thereof, or the dissolution or liquidation of the Company, or any sale
or transfer of all or any part of the Company’s assets or business, or any other corporate act or
proceeding, whether of a similar character or otherwise.

     14. Optionee. Whenever the word “Optionee” is used in any provision of this Agreement
under circumstances where the provision should logically be construed, as determined by the
Administrator, to apply to the estate, personal representative, or beneficiary to whom the Options
may be transferred by will or by the laws of descent and distribution, or another permitted
transferee, the word “Optionee” shall be deemed to include such person.

     15. Notices. All notices and other communications made or given pursuant to this
Agreement shall be in writing and shall be sufficiently made or given if hand delivered or mailed
by certified mail, addressed to the Optionee at the address contained in the records of the
Company, or addressed to the Administrator, care of the Company for the attention of its Corporate
Secretary at its principal office or, if the receiving party consents in advance, transmitted and
received via telecopy or via such other electronic transmission mechanism as may be available to
the parties.

     16. Entire Agreement. This Agreement contains the entire agreement between the
parties with respect to the Options granted hereunder. Any oral or written agreements,
representations, warranties, written inducements, or other communications made prior to the
execution of this Agreement with respect to the Options granted hereunder shall be void and
ineffective for all purposes.

     17. Amendment. This Agreement may be amended from time to time by the Administrator
in its discretion; provided, however, that this Agreement may not be modified in a
manner that would have a materially adverse effect on the Options or Option Shares as determined in
the discretion of the Administrator, except as provided in the Plan or in a written document signed
by each of the parties hereto.

     18. Conformity with Plan. This Agreement is intended to conform in all respects with,
and is subject to all applicable provisions of, the Plan. Inconsistencies between this Agreement
and the Plan shall be resolved in accordance with the terms of the Plan. In the event of any
ambiguity in this Agreement or any matters as to which this Agreement is silent, the Plan shall
govern. A copy of the Plan is provided to you with this Agreement.

     19. Governing Law. The validity, construction and effect of this Agreement, and of any
determinations or decisions made by the Administrator relating to this Agreement, and the rights of
any and all persons having or claiming to have any interest under this Agreement, shall be
determined exclusively in accordance with the laws of the State of Delaware, without regard to its
provisions concerning the applicability of laws of other jurisdictions. Any suit with respect
hereto will be brought in the federal or state courts in the districts which include the city and
state in which the principal offices of
the Company are located, and the Optionee hereby agrees and submits to the personal
jurisdiction and venue thereof.

     20. Headings. The headings in this Agreement are for reference purposes only and
shall not affect the meaning or interpretation of this Agreement.

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EXHIBIT A

EXERCISE FORM

Administrator of 2004 Stock Incentive Plan

c/o Office of the Corporate Secretary

AuthenTec, Inc.

709 S. Harbor City Blvd., Suite 400

Melbourne, FL 32901

Gentlemen:

     I hereby exercise the Options granted to me on ___, ___, by AuthenTec, Inc.
(the “Company”), subject to all the terms and provisions of the applicable grant agreement and of
the AuthenTec, Inc. 2004 Stock Incentive Plan (the “Plan”), and notify you of my desire to purchase
___shares of Common Stock of the Company at a price of $           per share pursuant to
the exercise of said Options.

     This will confirm my understanding with respect to the shares to be issued to me by reason of
this exercise of the Options (the shares to be issued pursuant hereto shall be collectively
referred to hereinafter as the “Shares”) as follows:

          (a) I am purchasing the Shares for my own account for investment only, and not with a view to,
or for sale in connection with, any distribution of the Shares in violation of the Securities Act
of 1933 (the “Securities Act”), or any rule or regulation under the Securities Act.

          (b) I understand that the Shares are being issued without registration under the Securities
Act, in reliance upon one or more exemptions contained in the Securities Act, and such reliance is
based in part on the above representation. I also understand that the Company is not obligated to
comply with the registration requirements of the Securities Act or with the requirements for an
exemption under Regulation A under the Securities Act for my benefit.

          (c) I have had such opportunity as I deemed adequate to obtain from representatives of the
Company such information as is necessary to permit me to evaluate the merits and risks of my
investment in the Company.

          (d) I have sufficient experience in business, financial and investment matters to be able to
evaluate the risks involved in the purchase of the Shares and to make an informed investment
decision with respect to such purchase.

          (e) I can afford a complete loss of the value of the Shares and am able to bear the economic
risk of holding such Shares for an indefinite period.

          (f) I understand that (i) the Shares have not been registered under the Securities Act and are
“restricted securities” within the meaning of Rule 144 under the Securities Act; (ii) the Shares
cannot be sold, transferred or otherwise disposed of unless they are subsequently registered under
the Securities Act or an exemption from registration is then available and, therefore, they may
need to be held indefinitely; and (iii) there is now no registration statement on file with the
Securities and Exchange Commission with respect to any stock of the Company and the Company has no
obligation or current intention to register the Shares under the Securities Act. As a condition to
any transfer of the Shares, I understand that the Company may require an opinion of counsel
satisfactory to the Company to the effect that such transfer does not require registration under
the Securities Act or any state securities law.

 

 

          (g) I understand that the certificates for the Shares to be issued to me will bear a legend
substantially as follows:

The shares of stock represented by this certificate are subject to restrictions on
transfer, an option to purchase and a market stand-off agreement set forth in a
certain Stock Restriction Agreement between the corporation and the registered owner
of this certificate (or his predecessor in interest), and no transfer of such shares
may be made without compliance with that Agreement. A copy of that Agreement is
available for inspection at the office of the corporation upon appropriate request and
without charge.

The securities represented by this stock certificate have not been registered under
the Securities Act of 1933 (the “Act”) or applicable state securities laws (the “State
Acts”), and shall not be sold, pledged, hypothecated, donated, or otherwise
transferred (whether or not for consideration) by the holder except upon the issuance
to the corporation of a favorable opinion of its counsel and/or submission to the
corporation of such other evidence as may be satisfactory to counsel for the
corporation, to the effect that any such transfer shall not be in violation of the Act
and the State Acts.

Appropriate stop transfer instructions will be issued by the Company to its transfer agent.

          (h) I am a party to a grant agreement and a stock restriction agreement with the Company,
pursuant to which I have agreed to certain restrictions on the transferability of the Shares and
other matters relating thereto.

Total Amount Enclosed: $__________

Date:________________________

 

(Optionee)

Received by AUTHENTEC, INC. on

___________________, ____________

			
	By:	 	

 

 

-2-

 

EXHIBIT B

VOTING TRUST AGREEMENT

     THIS AGREEMENT, dated this ___day of ___, 20___, by and between the undersigned
parties to create a Voting Trust of the stock of AuthenTec, Inc., a Delaware corporation,
hereinafter referred to as the “Company.”

ARTICLE I

CONSIDERATION AND PURPOSE OF TRUST

     1.01 Consideration. In consideration of their mutual promises contained within that certain
Stock Option Agreement by and between AuthenTec, Inc., and the undersigned and other good and
valuable consideration the receipt and sufficiency of which is hereby acknowledged, the undersigned
hereby agrees to enter into this Voting Trust Agreement.

     1.02 Purpose of Trust. The parties enter into this Voting Trust Agreement for the purpose of
concentrating the vote of the shares represented under this Agreement in the hands of the Voting
Trustee and to provide a clear and definite policy of management to guide the discretion of the
Voting Trustee.

ARTICLE II

PARTIES AND EFFECTIVE DATE

     2.01 Parties. The parties to this Agreement are:

     (1) ________________________,
owner of ________________________ (_____________) shares of common stock of the
Company, hereinafter called “Shareholder” before Voting Trust Certificates are issued to him and a
“Voting Trust Certificate Holder” after Voting Trust Certificates are issued to him.

     (2) F. Scott Moody or such other appointee as from time to time selected by the Board of
Directors pursuant to Section 3.04 (hereinafter called the “Trustee”).

     2.02 Effective Date. This Voting Trust Agreement shall become effective when signed by
Shareholder and the Trustee in accordance with Section 9.08.

-3-

 

ARTICLE III

TRUSTEE AND DEPOSITARY

     3.01 Number and Term of Trustee. There shall be one (1) Trustee of this trust. The first
Trustee shall be F. Scott Moody and his successor(s) shall be appointed as provided in Section
3.04. The Trustee shall serve for such term of this trust in the absence of his resignation or
death.

     3.02 Death of Trustee. The rights and duties of the Trustee shall terminate upon death and no
interest in any of the property owned or held by the trust nor any of the rights or duties of the
Trustee may be transferred by will, devise, succession, or in any manner except as provided in this
Agreement.

     3.03 Resignation. The Trustee may resign by giving sixty (60) days notice of resignation to
Shareholder and to the Company.

     3.04 Successor Trustee; Removal.

     (1) In the event of the death, resignation, removal, or incapacity to act of any Trustee, a
successor or successors shall be appointed by the Board of Directors of the Company representing at
least a majority of the Board of Directors of the Company, regardless of whether said shareholders
are parties to this Agreement.

     (2) Any trustee under this Agreement may be removed by an affirmative vote of the majority of
the then members of the Board of Directors of the Company.

ARTICLE IV

DEPOSITS AND TRANSFER OF SHARES — ISSUANCE AND TRANSFER OF VOTING TRUST CERTIFICATES

     4.01 Deposit of Shares. On the execution of this Agreement, Shareholder shall deposit with
the Trustee share certificates for all shares of the Company issued to Shareholder from the
exercise of options pursuant to that certain Stock Option Agreement granted to Shareholder under
the AuthenTec, Inc. 1998 Stock Option Plan, as amended and restated from time to time. All these
share certificates shall be endorsed in blank or to the Trustee, and be accompanied by instruments
of transfer reasonably requested by Trustee including but not limited to Stock Power in the form
attached hereto as Attachment A, which will enable the Trustee to cause the share certificates to
be transferred to the name of the Trustee.

     4.02 Transfer of Shares to Trustee. All share certificates of the Company delivered to the
Trustee shall be surrendered by the Trustee to the Company in return for new share certificates to
be issued in the name of the Trustee. The new share certificates shall state that they are issued
pursuant to this Agreement, and in the entry of ownership of the shares by the Trustee in the stock
transfer records of the Company that fact shall also be noted.

-4-

 

     4.03 Transfer of Shares to Successor Trustee. Despite any changes in the Trustee, the
certificates for shares standing in the name of the Trustee may be endorsed and transferred by any
successor Trustee with the same effect as if endorsed and transferred by the Trustee who has ceased
to act. The Trustee is authorized and empowered to cause any further transfer of the shares to be
made which may be necessary because of any change of persons holding the office of Trustee.

     4.04 No Sale of Shares. Notwithstanding the provisions of paragraph 4.01, the Trustee shall
have no authority to sell or otherwise dispose of or encumber any of the stock deposited pursuant
to the provisions of this Agreement.

     4.05 Voting Trust Certificate. On receipt by the Trustee of the share certificates and
transfer of them into the name of the Trustee, the Trustee shall hold the share certificates
subject to the terms of this Agreement, and the Trustee shall issue and deliver to Shareholder a
Voting Trust Certificate, in substantially the form of Attachment “A,” attached hereto.

     4.06 Transfer of Voting Trust Certificates. The Voting Trust Certificate shall not be
transferable by Shareholder except upon the issuance to the Company of a favorable opinion of
counsel for Shareholder in the form acceptable to Company or the submission to the Company of such
other evidence as may be satisfactory to Company and its counsel, in either case to the effect that
any such transfer shall not be in violation of the Securities Act of 1933, as amended, and
applicable state securities laws.

     Further, transfer of the Voting Trust Certificates and the rights evidenced thereby shall be
subject to all the transfer restrictions set forth in that certain Employee Option Agreement
related to the shares subject to this Voting Trust Agreement by and between undersigned and Company
including but not limited those set forth in Sections 6 and 7. The terms of such Employee Option
Agreement are hereby incorporated by this reference.

     All transfers shall be recorded in the Certificate Book and any transfer made of any Voting
Trust Certificate shall vest in the transferee all rights of the transferor and shall subject the
transferee to the same limitations as those imposed on the transferor by the terms of the Voting
Trust Certificate and this Agreement. The Trustee shall deliver the Voting Trust Certificate to
the transferee for the number of shares represented by the Voting Trust Certificate so transferred.

     4.07 Proof of Ownership. The Trustee shall not be required to recognize any transfer of a
Voting Trust Certificate not made in accordance with the provisions of this Agreement unless the
persons claiming ownership shall have produced indicia of title satisfactory to the Trustee, and
shall have deposited with the Trustee indemnity satisfactory to him.

     4.08 Holder of Certificate as Owner. The Trustee may treat the Voting Trust Certificate
Holders as the absolute owners and holders of the Voting Trust Certificates and as having all the
rights and interests represented by them for all purposes, and the Trustee shall not be bound or
affected by any notice to the contrary.

     4.09 Replacement of Certificates. If a Voting Trust Certificate shall become mutilated or be
destroyed, stolen or lost, the Trustee, in his discretion, may issue a new Voting Trust Certificate
of like tenor and denomination in exchange and substitution for and on cancellation

-5-

 

of the mutilated Voting Trust Certificate, or in substitution for the Certificate so
destroyed, stolen, or lost. The applicant for a substituted Voting Trust Certificate shall furnish
to the Trustee evidence of the destruction, theft, or loss of the Certificate satisfactory to him
in his discretion. The applicant shall also furnish indemnity satisfactory to the Trustee and to
his agent.

ARTICLE V

VOTING AND ACTION BY TRUSTEE

     5.01 Voting of Shares. While the Trustee holds shares transferred pursuant to the provisions
of this Agreement, he shall possess, subject to this Agreement, the right to exercise in person, or
by his nominees, agents, attorneys-in-fact, or proxies, all rights and powers of absolute owners
for the purposes of this Agreement and to vote or assent the Shares with respect thereto and to
take part in and consent to any shareholders’ action in proportion to the vote of all other shares
on any matter brought before the stockholders for a vote. In the event the Trustee receives
dividends and distributions, said dividends and distributions shall be made in accordance with
Article VI, hereof.

     No other person shall have any voting rights in respect to the Shares so long as this
Agreement is in effect.

     5.02 Any Trustee, its employees or agents and any firm or corporation of which it may be a
member, agent, or employee and any corporation, trust, or association of which it may be a trustee,
stockholder, director, officer, agent, or employee may contract with or be or become interested in
a pecuniary manner, directly or indirectly, in any matter or transaction to which the Company or
any subsidiary or controlled or affiliated corporation may be a party or in which it may be
concerned, as fully and freely as though the Trustee were not a Trustee hereunder. The Trustee,
his employees, or agents may act as directors or officers of the Company or of any subsidiary or
controlled or affiliated corporation.

     5.03 Compensation of Trustee. The Trustee shall serve without compensation.

     5.04 Expenses. The Trustee is expressly authorized to incur and pay those reasonable charges
and expenses that he may deem necessary and proper for administering this Agreement and loan
documents. The Company shall reimburse and indemnify the Trustee for all expenses incurred by him
in connection with the discharge of his duties under this Agreement.

     5.05 Trustee’s Liability. The Trustee shall be free from liability in acting upon any paper,
document, or signature reasonably believed by him to be genuine and to have been signed by the
proper party. The Trustee shall not be liable for any error of judgment in good faith and with due
diligence, nor for any act done or omitted, nor for any mistake of fact or law, nor for anything
which he may do or refrain from doing in good faith with due diligence, except that the Trustee
shall be liable for his own neglect or malfeasance.

-6-

 

ARTICLE VI

DIVIDEND, DISTRIBUTION, SUBSCRIPTION RIGHTS OF CERTIFICATE HOLDERS

     6.01 Cash Dividends. Each Voting Trust Certificate Holder shall be entitled to receive from
time to time payments equal to the amount of cash distributions and/or dividends, if any, collected
or received by the Trustee on the shares in regard to which Voting Trust Certificates were issued,
less the deductions provided for in paragraph 6.04. These payments shall be made, as soon as
practicable after the receipt of the distributions/dividends, to the Voting Trust Certificate
Holders at the close of business on the record date determined pursuant to the provisions of
paragraph 6.05.

     6.02 Distributions on Liquidation. In the event of the dissolution or total or partial
liquidation of the Company, the Trustee shall receive the moneys, securities, rights, or property
to which Shareholders of the Company are entitled, and shall distribute it among the Voting Trust
Certificate Holders in proportion to their interests, as shown by the books of the Trustee. The
Trustee may withhold therefrom the deductions provided for in paragraph 6.04.

     6.03 Other Distributions to Shareholders. If at any time during the continuation of this
Agreement the Trustee shall receive or collect any moneys through a distribution by the Company to
its Shareholders, other than in payment of cash distributions/dividends, or shall receive any
property (other than shares of stock of the Company) through a distribution by the Company to its
Shareholders, the Trustee shall distribute it to the Voting Trust Certificate Holders registered as
such at the close of business on the record date determined pursuant to the provisions of paragraph
6.05. The Trustee may withhold therefrom the deductions provided for in Paragraph 6.04.

     6.04 Deductions for Distributions. There shall be deducted and withheld from every
distribution of every kind under this Agreement any taxes, assessments, or other charges that may
be required by law to be deducted or withheld, as well as expenses and charges incurred pursuant to
paragraph 5.06, to the extent that the expenses and charges are not reimbursed or remain unpaid.

     6.05 Record Date for Distributions. The Trustee may, if he deems it advisable, fix a date not
exceeding twenty (20) days preceding any date for the payment or distribution of dividends or for
the distribution of assets or rights as a record date for the determination of the Voting Trust
Certificate Holders entitled to receive the payment or distribution, and the Voting Trust
Certificate Holders of record on that date shall be exclusively entitled to participate in the
payments or distributions. If the Trustee fails to fix a record date, the date three (3) days
prior to the date of payment or distribution of dividends or the distribution of assets or rights
shall constitute the record date for the determination of the Voting Trust Certificate Holders
entitled to receive the payment or distribution.

     6.06 Subscription Rights. If any securities of the Company shall be offered for subscription
to the Voting Trust Certificate Holders, the Trustee, promptly on receipt of notice of the offer,
shall mail a copy of the notice to the Voting Trust Certificate Holder of record. On receipt by
the Trustee, at least thirty (30) days prior to the last date fixed by the Company for
subscription, of a request from the Voting Trust Certificate Holder to be subscribed in his behalf,
accompanied by the sum of money required to be paid for the securities, the Trustee shall make

-7-

 

the subscription and payment on behalf of the Voting Trust Certificate Holder. On receiving
from the Company the certificate for the securities subscribed for, the Trustee shall issue to the
Voting Trust Certificate Holder a Voting Trust Certificate; if they are securities other than
shares, then the Trustee shall deliver the same to the Voting Trust Certificate Holder.

ARTICLE VII

BOOKS AND RECORDS

     7.01 Record of Shares. It shall be the duty of the Trustee to maintain a record of all share
certificates of the Company transferred to the Trustee, indicating the name in which the stock was
held, the date of issuance of the stock, the class and series of the stock, the number of shares,
and the number of the certificates representing those shares. The Trustee shall also maintain a
record of the date on which any share certificates were received by him, the date on which they
were delivered to the corporation for transfer to the Trustee and shall obtain a receipt for any
certificates so delivered. The Trustee shall receive and hold the new share certificates issued by
the corporation in the name of the Trustee and shall maintain a record indicating the date of
issuance of the certificates, the date of receipt of the certificates, and the place in which the
certificates are held by him.

     7.02 Record of Trust Certificates. The Trustee shall maintain a record showing the names and
addresses of the Voting Trust Certificate Holders. The record shall show the number of
Certificates held by each person. The record shall show the dates on which the Voting Trust
Certificates were issued, cancelled, transferred, or replaced. The record shall be known as the
Certificate Record Book and shall be open to inspection by any of the parties to this Agreement or
their successors at any reasonable time. The record shall show any subsequent transfer,
assignment, pledge, attachment, execution, and any other matter affecting the title to the Voting
Trust Certificates which comes to the attention of the Trustee. Any documents purporting to affect
the title of the Voting Trust Certificates shall also be kept in the Certificate Record Book,
together with a sample copy of the Voting Trust Certificate.

     7.03 Other Records. The Trustee shall maintain such other books and records and shall perform
the duties required of him to be performed elsewhere in this Agreement.

     7.04 Inspection of Records. The parties to this Agreement shall deposit a counterpart of this
Agreement with the Company at its principal office and the Agreement shall be subject to the same
right of examination by a Shareholder of the Company, in person or by agent or attorney, as are the
books and records of the Company, and shall be subject to examination by any holder of a beneficial
interest in the voting trust, either in person or by agent or attorney, at any reasonable time for
any proper purpose.

ARTICLE VIII

TERM OF TRUST

     8.01 Irrevocability of Trust. The Trust created by this Agreement is expressly declared to be
irrevocable, except as otherwise provided in this Agreement.

-8-

 

     8.02 Termination. This Agreement shall automatically terminate upon the earlier of the
following:

	 	(1)	 	The liquidation of the Company; or
	 
	 	(2)	 	Ten (10) years after the date hereof; or
	 
	 	(3)	 	Upon the closing of a firm commitment underwritten public offering of shares of the
Company’s common stock described in Section II of the Certificate of Incorporation of the
Company.

     8.03 Return of Share Certificates After Termination. Within thirty (30) days after the
termination of this Agreement, the Trustee shall transfer to the Voting Trust Certificate Holders
share certificates representing the number of shares in respect of which the Voting Trust
Certificates were issued on the surrender of the Voting Trust Certificates properly endorsed and on
payment by the persons entitled to receive the share certificates of a sum sufficient to cover any
governmental charges on the transfer or delivery of the share certificates.

     8.04 Final Accounting. Within ninety (90) days after termination of this Trust, the Trustee
shall render a final accounting to the Voting Trust Certificate Holders and to the Company and
shall distribute any funds or other assets held by him to the parties entitled thereto.

ARTICLE IX

MISCELLANEOUS

     9.01 Place of Performance. This Agreement is made, executed, and entered into at Melbourne,
Florida, and it is mutually agreed that the performance of all parts of this contract shall be made
at Melbourne, Florida.

     9.02 Governing Law. This Agreement is intended by the parties to be governed and construed in
accordance with the laws of the State of Delaware and venue is agreed to be in Brevard County,
Florida.

     9.03 Severability of Provisions. This Agreement shall not be severable or divisible in any
way but it is specifically agreed that, if any provision should be held invalid, the invalidity
shall not affect the

     validity of the remainder of the Agreement.

     9.04 Notice to Trustee . Any notice to be given to the Trustee under this Agreement shall be
sufficiently given if mailed to the Trustee at P.O Box 2719, Melbourne, Florida 32902, or at such
other address as the Trustee may from time to time designate by written notice given to the Voting
Trust Certificate Holders.

     9.05 Notice to Voting Trust Certificate Holders. Any notice to be given to a Voting Trust
Certificate Holder shall be sufficiently given if delivered personally, or mailed by certified

-9-

 

mail, return receipt requested, to him at the address of the Voting Trust Certificate Holder
appearing on the Certificate Book to be maintained by the Trustee. Every notice given pursuant
hereto shall be effective whether or not received and shall be deemed as given on the date of
mailing thereof.

     9.06 Meetings of Voting Trust Certificate Holders. The Trustee may call a meeting of the
Voting Trust Certificate Holders at any time by providing written notice fourteen (14) days prior
to such meeting. The notice shall contain a statement of the matters to be discussed at the
meeting.

     9.07 Execution of Counterparts. This Agreement shall be prepared in multiple copies and
forwarded to each of the parties for execution. This Agreement shall become effective at the time
provided in paragraph 2.02. All of the signatures may be affixed to one copy or to separate
copies, and when all copies are received and signed by all the parties, they shall constitute one
Agreement which is not otherwise separable or divisible.

     9.08 Amendment of Agreement. If at any time the Trustee deems it advisable to amend this
Agreement, he shall submit the amendment to the Voting Trust Certificate Holders of the then
outstanding Voting Trust Certificates for their approval at a special meeting of Voting Trust
Certificate Holders which shall be called for that purpose. Notice of the time and place of the
meeting shall be given in the manner provided in paragraph 9.07, and shall contain a copy of the
proposed amendment. If at the meeting or any adjournment thereof the proposed amendment shall be
approved by the affirmative vote of the majority of the Voting Trust Certificate Holders, the
proposed amendment so approved shall become a part of this Agreement as if originally incorporated
herein.

     9.09 Advice of Counsel. Each of the parties agrees and represents that he has been
represented by his own counsel with regard to the execution of this Agreement or that, if acting
without counsel, he has had adequate opportunity and has been encouraged to take the advice of his
own counsel prior to the execution of this Agreement.

     9.10 Share Certificates. Each certificate representing shares held by any of the parties to
this Agreement shall contain a statement that the shares represented by the certificate are subject
to the provisions of a Voting Agreement.

     Execution. Executed on      , 200___, at      , Florida.

Trustee:

 

 

F. Scott Moody, Trustee

 

 

 

 

(Name)

 

 

(SS#)

Witnesses:

 

 

 

 

 

 

-10-

 

Attachment A

     THE SECURITIES REPRESENTED HEREBY HAVE BEEN ACQUIRED PURSUANT TO AN INVESTMENT REPRESENTATION
ON THE PART OF THE VOTING TRUST CERTIFICATE HOLDER HEREOF AND SHALL NOT BE SOLD, PLEDGED,
HYPOTHECATED, DONATED, OR OTHERWISE TRANSFERRED, WHETHER OR NOT FOR CONSIDERATION, BY THE VOTING
TRUST CERTIFICATE HOLDER EXCEPT UPON THE ISSUANCE TO THE COMPANY OF A FAVORABLE OPINION OF ITS
COUNSEL OR THE SUBMISSION TO THE COMPANY OF SUCH OTHER EVIDENCE AS MAY BE SATISFACTORY TO SUCH
COUNSEL, IN EITHER CASE TO THE EFFECT THAT ANY SUCH TRANSFER SHALL NOT BE IN VIOLATION OF THE
SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE STATE SECURITIES LAWS.

VOTING TRUST CERTIFICATE

     THIS IS TO CERTIFY that the undersigned Trustee has received a Certificate or Certificates
issued in the name of ____________________________, evidencing
the ownership of ___________________
(______________) shares of common stock of AuthenTec, Inc. (“Company”), a Delaware corporation, and
that the shares are held subject to all the terms and conditions of that Agreement, dated
___, 200___, by and between F. SCOTT MOODY, as Trustee, and certain Shareholders of
AuthenTec, Inc. During the term of the Voting Trust, the Trustee shall possess and be entitled to
exercise the absolute right to vote and otherwise represent the shares of the Shareholders of the
Company pursuant and subject to the terms and conditions of the Voting Trust Agreement. It is
expressly understood and agreed that no voting rights shall pass to the holder by virtue of the
ownership of this Trust Certificate. Upon the termination of the Trust, this Certificate shall be
surrendered to the Trustee by the holder upon delivery to that holder of a stock certificate
representing a like number of shares.

     IN WITNESS WHEREOF, the undersigned Trustee have executed this Certificate on ___,
20_.

	 	 	 	 	 
	 	 	 
	 	
 	 
	 	F. Scott Moody, Trustee 	 
	 	 	 
	 

-11-EX-10.5 LEASE AGREEMENT

 

Exhibit 10.5

LEASE AGREEMENT

MARINA TOWERS

1. Basic Lease Provisions (“Basic Lease Provisions”)

     1.1 Parties: This Lease, dated as of the 2nd day of March, 2004, is made by and between Marina Towers, LLC, a Florida limited liability company (hereinafter referred
to as “Landlord”), and AuthenTec, Inc. a Delaware Corporation (hereinafter referred to as
“Tenant”).

     1.2 Premises: Suite 400, consisting of approximately 12,694 square feet of
Rentable Area, as hereinafter defined, and as shown on Exhibit “A” hereto (the “Premises”).

     1.3 Building: Marina Towers, 709 South Harbor City Boulevard, City of
Melbourne, Brevard County, Florida (the “Building”).

     1.4 Use: The Premises shall be used solely for the purposes of general offices and
electronic labs, subject to the terms, limitations, and conditions provided in this Lease.

     1.5 Term: Three (3) years estimated to commence on the 1st day of January, 2004,
(“Commencement Date”) and ending on the third (3rd) anniversary thereafter (“Expiration Date”).
Tenant is currently in occupancy. Tenant’s former lease agreement terms and conditions shall be in
full force and effect until the Commencement Date. It is also understood and agreed that Tenant
shall have the right to extend the Term for one additional two-year period. This extension will be
automatic unless Tenant provides written notice to Landlord of Tenant’s intent not to extend this
Agreement no later than six months prior to the then effective Expiration Date. Such extension
shall be under all of the terms and conditions which are set forth in this lease except that Base
Rent shall be increased by $0,50 per square foot per year over the rate in effect in the prior
year.

     1.6 Base Rent: $14.00 per rentable square foot, in year one (1), subject to
adjustment as set forth below; payable in advance on the first day of each month.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	ESTIMATED	 	 	 	 	 	RATE	 	 	ANNUAL	 	 	MONTHLY	 
	YEAR	 	DATES	 	SQ.FT.	 	 	PER SQ.FT	 	 	DOLLARS	 	 	DOLLARS	 
	 	 	(SUBJECT TO	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	ADJUSTMENT)	 	 	 	 	 	PER YEAR	 	 	 	 	 	 	 	 	 
	 
	1
	 	1/1/04 TO 12/31/04	 	 	12694	 	 	$	14.00	 	 	$	177,716.04	 	 	$	14,809.67	 
	2
	 	1/1/05 TO 12/31/05	 	 	12694	 	 	$	14.50	 	 	$	184,062.96	 	 	$	15,338.58	 
	3
	 	1/1/06 TO 12/31/06	 	 	12694	 	 	$	15.00	 	 	$	190,410.00	 	 	$	15,867.50	 

     Plus applicable operating cost adjustments and Florida state sales tax

     1.7 Tenant’s Share of Operating Costs: Intentionally Omitted.

     1.8 Security Deposit: None.

 

 

	 	 	 	 	 
	

    1.9
    

	
 
	
    Tenant Cost Allowance: None.
    The space shall be leased in “as is” condition.
    

	

    1.10
    

	
 
	
    Improvements: non-applicable
    

	

    1.11
    

	
 
	
    State: The State of Florida.
    

	

    1.12
    

	
 
	
    Broker: None — The
    Landlord and Tenant are representing themselves in this
    transaction.
    

	

    1.13
    

	
 
	
    Notices:
    
	
 
	
    Landlord:
    

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
    Marina Towers, LLC

    705 South Harbor City Blvd.

    Melbourne, FL 32901
    

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
    W/ copies to:

    JM Real Estate, Inc., as Managing Agent

    1600 Sarno Road, Suite 113

    Melbourne, Florida 32935
    

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
    Tenant:

    AuthenTec, Inc.

    709 South Harbor City Blvd., Suite 400

    Melbourne, Florida 32901
    

 

    2.  Term.

 

    This Lease shall commence upon the Commencement Date specified
    in Paragraph 1, and it shall continue until the Expiration
    Date specified in Paragraph 1 (hereinafter referred to as
    the “Term”).

 

    3.  Rent.

 

    Tenant shall pay an annual base rental in the amount specified
    in Paragraph 1 (hereinafter referred to as “Base
    Rental”). In the event any installment of Base Rental due
    Landlord under this Lease shall not be paid by Tenant within ten
    (10) days of the date when the same is due, a late charge of
    five (5%) percent of the amount of such payment shall be payable
    by Tenant to Landlord. From and after the date that any such
    payment shall be thirty (30) days or more past due, it shall
    bear interest at the maximum rate permitted by applicable law
    until paid.

 

    4.  Security Deposit. — Intentionally
    Omitted.

 

    5.  Improvements to Leased Premises.

 

    Intentionally omitted. The space shall be leased in “as
    is” condition.

 

6. Tenant Right of First Offer.

     Tenant shall have the right of first offer on space within the Building which is currently
occupied but subsequently becomes vacant. If at any time Landlord desires or attempts to release
said vacant space within the Building, Landlord shall inform Tenant of Landlord’s desired terms.
Tenant shall have five (5) days to agree to said terms in writing. If Tenant exercises its rights
under this provision, Tenant shall occupy the space within thirty (30) days of exercising such
right. This provision only applies to vacant space in excess of 2,000 square feet.

7. Sales and Use Tax.

     Any sales, use or other tax, excluding corporate excise or income taxes, now or hereafter
imposed by the United States of America, the State of Florida, or any political subdivision
thereof, shall be paid monthly or annually as required as additional Base Rental by Tenant
notwithstanding the fact that such statute, ordinance or enactment imposing the same may endeavor
to impose the tax on the Landlord, and Tenant’s Base Rental shall be increased by an amount
sufficient to pay any such tax or taxes.

8. Services to be Furnished by the Landlord.

     Landlord shall furnish the following services without charge at the proper season during
reasonable hours (8:00 a.m. to 6:00 p.m. Monday through Friday inclusive and 8:00 a.m. to 1:00 p.m.
Saturday) on normal business days, except legal holidays normally observed in the State identified
on Paragraph 1.

     Entry to the Leased Premises during normal working hours on business days. On other days and
after normal working hours, Tenant may have entry to the Leased Premises at such times by a key,
card key system, by signing in with a guard, or whatever system is chosen by Landlord.

     Elevator facilities, where applicable.

     Hot and cold water at those points of supply provided for general use of other tenants in the
Building; central heat and air conditioning, at such temperatures and in such amounts as are
considered by Landlord to be standard, but service at times during business days other than normal
business hours for the Building, on Saturdays, Sundays and holidays or in an amount considered by
Landlord to be in excess of standard to be furnished only upon the request of Tenant, who shall
bear the entire cost thereof; routine maintenance and electric lighting service for all public
areas and special service areas of the Building in the manner and to the extent deemed by Landlord
to be standard. To the extent power consumption is submetered, Tenant shall not be restricted in
the times when it can operate any electrical devices.

 

 

    Janitorial service on business days, provided Tenant shall
    provide cleaning for any area in the Leased Premises used for
    storage, preparation, service or consumption of food or
    beverages on a daily basis and pest extermination on a monthly
    basis in a manner satisfactory to Landlord.

 

    Tenant’s premises shall be separately metered, at
    Tenant’s sole cost and expense, and Landlord shall not be
    responsible for the cost of electricity for Tenant’s
    premises. Tenant acknowledges that the existing electrical
    service is sufficient.

 

    Tenant shall be allowed to connect Tenant’s mainframe
    computer system to the emergency generator at Tenant’s
    absolute sole cost and expense should auxiliary power be
    available once Landlord has met all emergency power requirements
    to provide power for building fire and safety codes. Landlord
    shall not charge any additional rent for said usage of the
    emergency generator.

 

    All building standard fluorescent bulb replacement in all areas
    and all incandescent bulb replacement in public areas, toilet
    and restroom areas and stairwells.

 

    Failure by Landlord to any extent to furnish the services
    described in this Section 8, or any cessation thereof,
    resulting from the repair or alteration of the Building or
    causes beyond the reasonable control of Landlord shall not be
    construed as an eviction of Tenant, nor work an abatement of
    rent, nor relieve Tenant from fulfillment of any covenant or
    agreement hereof.

 

    9.  Common
    Area.

 

    During the term of this Lease, Landlord grants Tenant a
    non-exclusive license to use and occupy in common with others so
    entitled, the common area of the Building (hereinafter referred
    to as the “Common Area”), including, but not limited
    to, corridors, stairways, elevators, restrooms, lobbies,
    entranceways, parking areas, service roads, loading facilities,
    sidewalks, and other facilities as may be designated from time
    to time by Landlord subject to the terms and conditions of this
    Lease.

 

    10.  Keys,
    and Locks.

 

    Landlord shall furnish Tenant with two (2) keys for each
    corridor door entering the Leased Premises. Tenant shall not
    change the locks without Landlord’s permission said
    permission shall not be unreasonably withhold. Tenant is
    required to provide keys and access to all areas of the Lease
    Premises in case of an emergency. Upon termination of this
    Lease, Tenant shall surrender to Landlord all keys of the Leased
    Premises and give to Landlord the explanation of the combination
    of all locks for safes, safe cabinets and vault doors, if any,
    installed in the Leased Premises by Tenant. Tenant may, at their
    own expense, duplicate the aforementioned keys to provide to all
    employees.

 

    11.  Graphics.

 

     Landlord shall provide and install, at Landlord’s cost, all letters or numerals on entrance
doors to the Leased Premises. All such letters and numerals shall be in the Building standard
graphics, and no others shall be used or permitted on the Leased Premises.

12. Parking.

     Landlord may make, modify and enforce rules and regulations relating to any and all of the
parking areas of the Building, and Tenant, its employees, or invitees utilizing such parking areas
shall abide by such rules and regulations.

13. Permitted Uses.

     Tenant shall use and occupy the Leased Premises for the purpose specified in Paragraph 1 and
for no other purpose; provided that Tenant shall not occupy or use, or permit any portion of the
Leased Premises to be occupied or used for any business or purpose which is unlawful, disreputable
or deemed to be extra-hazardous on account of fire, or permit anything to be done which would in
any way increase the rate of fire or liability or any other insurance coverage on the Building
and/or its contents, cause the load upon any floor of the Building to exceed the load for which the
floor was designed or the amount permitted by law, or use electrical energy exceeding the capacity
of the then existing feeders or wiring installations. Tenant shall further conduct its business and
control its agents, employees, invitees, and visitors in such manner as not to create any nuisance,
or interfere with, annoy or disturb any other tenant or Landlord in its operation of the Building.
No vending machine shall be installed within the Leased Premises without Landlord’s prior written
consent.

14. Laws, Regulations and Rules of Building.

     Tenant shall comply with all applicable laws, ordinances, rules and regulations relating to
the use, condition or occupancy of the Leased Premises and all common areas. Tenant shall comply
with reasonable rules and regulations as may be adopted or altered by Landlord from time to time
for the safety, care and cleanliness of the Leased Premises, Building and common areas and for
preservation of good order therein after receiving notice thereof, including, but not limited to,
the Rules and Regulations attached hereto as EXHIBIT B.

15. Repairs by Landlord.

     Landlord shall not be required to make any improvements to or repairs of any kind or character
in the Leased Premises during the Term of this Lease, except such repairs as may be deemed
necessary by Landlord for normal maintenance operations required to maintain the Leased Premises in
tenantable condition. The obligation of Landlord to maintain and repair the Leased Premises shall
be limited to building standard items. Special leasehold improvements will, at Tenant’s written
request, be maintained by Landlord at Tenant’s expense, at a cost or charge equal to the direct
costs incurred in such maintenance plus 15% of said cost to cover overhead.

 

 

    Landlord shall be responsible for the operation and maintenance
    of the Common Area including, without limitation, the repair and
    maintenance of all parking areas, driveways, sidewalks,
    landscaped areas, drainage, lighting facilities, and traffic
    directional signs and markers within the Common Area, and to
    keep the same in a clean and sightly condition, clearly stripped
    and reasonably free of rubbish, refuse, snow, ice, and dirt.
    Further, the Landlord shall repair and maintain the structural
    portions of the Building, including exterior walls and roof.

 

    16.     Repairs
    and Alterations by Tenant.
    

 

    Tenant shall, at its own cost and expense, repair or replace any
    damage or injury done to the Leased Premises or the Building, or
    the Common Area caused by Tenant, its agents, contractors,
    servants, employees, invitees, or visitors; provide that if
    Tenant fails to make such repairs or replacements promptly,
    Landlord may, at its option, make such repairs or replacements,
    and Tenant shall pay the cost thereof to the Landlord on demand
    as additional rent. No alterations in the Leased Premises or
    signs visible from outside the Leased Premises shall be made or
    installed by Tenant without prior written consent of Landlord,
    and at Landlord’s election such alterations or additions
    shall become the property of Landlord upon termination of this
    Lease. All plans for repairs, replacements, alterations, or
    installations required or permitted to be made by Tenant shall
    be subject to the approval of Landlord, which may be subject to
    any reasonable protection or restriction designed to preserve
    the architectural design and structural integrity of the
    Building and to protect against claims by materialmen and
    laborers.

 

    17.     Care
    of Leased Premises.
    

 

    Tenant shall not commit or allow any waste or damage to be
    committed on any portion of the Leased Premises, and at the
    termination of this Lease, Tenant shall deliver possession of
    the Leased Premises to Landlord in as good condition as at date
    of possession by Tenant, ordinary wear and tear or damage
    resulting from fire or other unavoidable casualty excepted. If
    Tenant installs improvements in the Leased Premises reasonably
    determined by Landlord to be special or non-standard, Landlord
    may require Tenant to remove such special or non-standard
    improvements and restore the Leased Premises to its original
    condition at Tenant’s sole cost and expense upon the
    termination of this Lease.

 

    18.     Landlord’s
    Right to Substitute Space.
    

 

    If the Leased Premises is less than a full floor, Landlord
    reserves the right with Tenant’s consent, which shall not
    unreasonably be withheld, to substitute other comparable space
    within the Building for the Leased Premises, provided Landlord
    pays all reasonable moving expenses of Tenant incident to such
    substitution.

 

    19.     Peaceful
    Enjoyment.
    

 

    Tenant shall have the right to peacefully occupy, use and enjoy
    the Leased Premises during the Lease Term, subject to the other
    terms hereof, provided Tenant pays the rent and

 

other sums herein required to be paid by Tenant and performs all of Tenant’s covenants and
agreements herein contained.

20. Landlord’s Right of Entry.

     Landlord or its agents or representatives shall have the right to enter into and upon any part
of the Leased Premises at all reasonable hours to inspect the same, clean or make repairs,
alterations or additions thereto, as Landlord may deem necessary or desirable. Landlord further
reserves the right to show the Leased Premises to prospective tenants or brokers during the last
six months of the Lease Term as extended, and to prospective purchasers or mortgagees at all
reasonable times, provided prior notice is given to Tenant in each case, and Tenant’s use and
occupancy of the Premises shall not be materially inconvenienced. Tenant shall not be entitled to
any abatement or reduction of rent by reason of the exercise of the foregoing rights on the part of
Landlord.

21. Limitation of Landlord’s Liability.

     Landlord’s liability to Tenant shall be limited as follows:

     Landlord shall not be liable or responsible to Tenant for any injury to person or property
occurring in the Leased Premises, the Building or the Common Area unless caused by the act,
omission or neglect of Landlord, its agents, contractors, servants or employees.

     Landlord shall not be liable or responsible to Tenant for lost profits, business interruption
or any other type of consequential damages caused by the making of repairs or alterations to the
Leased Premises, the Building, or Common Area, failure to provide or interruption of services,
failure to make repairs, injury to person or property, or otherwise.

     All separate and personal liability of Landlord or any partner thereof of every kind or
nature, if any, is hereby expressly waived by Tenant, and by every person now or hereafter claiming
by, through, or under Tenant; and Tenant shall look solely to Landlord’s interest in the Building
and the proceeds of any insurance maintained by Landlord in connection with the Building for the
payment of any claim against Landlord.

     Landlord shall notify Tenant in a timely manner of all major repairs to the Lease Premises,
and Tenant shall have the right to review such repairs that may result in lost business activity,
consequential damages or general inconveniences to the Tenant. Tenant and Landlord shall seek ways
to minimize dislocation of activities and inconveniences of Tenant that may result from such major
repairs.

22. Hold Harmless.

     Landlord shall not be liable to Tenant, or to Tenant’s agents, contractors, servants,
employees, customers, invitees, or visitors for any damage to person or property caused by any act,
omission or neglect of Tenant or such persons, and Tenant agrees to indemnify and hold Landlord
harmless from all liability and claims for any such damage. Tenant shall not be

 

 

    liable to Landlord, or to Landlord’s agents, contractors,
    servants, employees, customers, invitees, or visitors for any
    damage to person or property caused by any act omission or
    neglect of Landlord or such persons, and Landlord agrees to
    indemnify and hold Tenant harmless from all claims for such
    damages.

 

    23.  Defaults and Landlord’s Remedies.

 

    The following rights and remedies of the Landlord shall be
    cumulative, and none shall exclude any other right or remedy
    allowed by law:

 

    If any voluntary or involuntary petition under any section of
    any bankruptcy act shall be filed by or against Tenant, or any
    voluntary or involuntary proceeding in any court or tribunal
    shall be instituted to declare the Tenant insolvent or unable to
    pay Tenant’s debts, and in the case of an involuntary
    petition or proceeding, the petition or proceeding is not
    dismissed within thirty (30) days from the date it is filed,
    Landlord may elect, upon notice of such election, to terminate
    this Lease.

 

    If Tenant defaults in the payment of any installment of the rent
    and does not cure the default within five (5) days after notice,
    or if Tenant defaults in the prompt performance of any other
    provision of this Lease and does not cure such other default
    within ten (10) days, or forthwith if the default involves a
    hazardous condition, after written notice by Landlord, or if the
    leasehold interest of Tenant be levied upon under execution or
    be attached by process of law, or if Tenant makes an assignment
    for the benefit of creditors, or if a receiver be appointed for
    any property of Tenant, or if Tenant abandons or vacates the
    Leased Premises, Landlord may terminate this Lease and
    Tenant’s right to possession of the Leased Premises or,
    without terminating this Lease, forthwith terminate
    Tenant’s right to possession of the Leased Premises.

 

    Upon any termination of this Lease, or upon any termination of
    the Tenant’s right to possession without termination of the
    Lease, Tenant shall immediately vacate the Leased Premises and
    deliver possession to Landlord.

 

    If Landlord elects to terminate Tenant’s rights to
    possession only, without terminating this Lease, Landlord may,
    at Landlord’s option, enter into the Leased Premises,
    remove Tenant’s signs and other evidences of tenancy, and
    take and hold possession thereof without such entry and
    possession terminating this Lease or releasing Tenant from the
    obligation to pay the rent hereunder for the full Term. Upon and
    after entry into possession without termination of this Lease,
    Landlord may relet the Leased Premises or any part thereof for
    the account of Tenant for such rent, for such time and upon such
    terms as Landlord in its sole discretion shall determine, and
    Landlord shall not be required to accept any tenant offered by
    Tenant or to observe any instructions given by Tenant about such
    reletting. A reletting for a term longer than the then remaining
    Lease Term shall not constitute an acceptance by Landlord of a
    surrender of this Lease or a waiver of any of Landlord’s
    rights hereunder. In any such case, Landlord may make repairs,
    alterations and additions in or to the Leased Premises, and
    redecorate the same to the extent reasonably deemed necessary or
    desirable by Landlord, and Tenant shall, upon demand, pay the
    cost thereof, together with Landlord’s

 

expense of the reletting. If the consideration collected by Landlord upon any such reletting for
Tenant’s account is not sufficient to pay monthly the full amount of the rent reserved in this
Lease, together with the costs of repairs, alterations, additions, redecorating and Landlord’s
expenses of reletting, Tenant shall pay to Landlord the amount of each monthly deficiency upon
demand.

     Any property which may be removed from the Leased Premises by the Landlord pursuant to the
authority of this Lease or of law, to which Tenant is or may be entitled, may be handled, removed
or stored by Landlord at the risk, cost and expense of Tenant, and Landlord shall in no event be
responsible for the value, preservation or safekeeping thereof. Tenant shall pay to Landlord, upon
demand, any and all expenses incurred in such removal and all storage charges against such property
so long as the same shall be in Landlord’s possession or under Landlord’s control. Any such
property of Tenant not retaken from storage by Tenant within thirty (30) days after the end of the
Lease Term, however terminated, shall be conclusively presumed to have been conveyed by Tenant to
Landlord under this Lease as a bill of sale.

     In the event Tenant defaults in the performance of any of the terms, covenants, agreements or
conditions contained in this Lease and Landlord places the enforcement of this Lease, or any part
thereof, or the collection of any rent due, or to become due hereunder or recovery of the
possession of the Leased Premises in the hands of an attorney, or files suit upon the same, Tenant
agrees to pay Landlord’s reasonable attorney’s fees.

     Failure of Landlord to declare any default immediately upon occurrence thereof, or delay in
taking any action in connection therewith, shall not waive such default, but Landlord shall have
the right to declare any such default at any time and take such action as might be lawful or
authorized hereunder, either at law or in equity.

     If Landlord shall default in the performance or observance of any agreement, condition or
provision in this Lease and shall not cure such default within thirty (30) days after notice in
writing from Tenant specifying the default (or shall not within said period commence to cure such
default and thereafter prosecute the curing of such default to completion with due diligence) then
the Tenant may at any time thereafter cure such default and the Landlord shall reimburse the Tenant
for any amount reasonably paid and any expense or contractual liability reasonably so incurred.

24. Holding Over.

     If Tenant retains possession of the Leased Premises or any part thereof after the termination
of this Lease, Tenant shall pay rent (including Base Rent and Base Rental Adjustment) at one
hundred fifty percent (150%) the rate payable on the month preceding such holding over computed on
a daily basis for each day that Tenant remains in possession. In addition thereto, Tenant shall
be liable for and pay to Landlord, all damages, consequential as well as direct, sustained by
reason of Tenant’s holding over.

25. Condemnation.

 

 

    If the Leased Premises or Building shall be partially taken or
    condemned for any public purpose to such an extent as to render
    a portion of the Leased Premises untenantable, the rental
    provided for herein shall abate as to the portion rendered
    untenantable. In the event the whole of the Leased Premises
    shall be so taken or condemned, this Lease shall terminate as of
    the date of taking of possession. All proceeds from any taking
    or condemnation of the Leased Premises shall belong to and be
    paid to Landlord excepting any award expressly made to Tenant by
    any governmental authority for the costs of or the removal of
    Tenant’s stock, equipment and fixtures.

 

		
	    26.  	
    Damage and Destruction to the Leased Premises

 

    If the Leased Premises, the Building, or the Common Area is
    damaged or destroyed by fire or other casualty, cause or
    condition whatsoever through no fault or neglect of Tenant, its
    agents, employees, customers, invitees, visitors, or contractors
    so as to cause the Leased Premises to be untenantable or to make
    it impossible for Tenant to continue its normal business
    operations therein, a just proportion of the rent herein
    reserved shall abate according to the extent the full use and
    enjoyment of the Leased Premises are rendered impossible by
    reason of such damage until such time as Landlord makes such
    portion of the Leased Premises tenantable or useable for
    Tenant’s normal business operations, as the case may be. If
    Landlord determines that such damage or destruction cannot be
    repaired within one hundred eighty (180) days so as to
    restore fully Tenant’s full use and enjoyment of the Leased
    Premises, Landlord may, by written notice to the Tenant given
    within thirty (30) days after such damage, terminate this
    Lease as to all the Leased Premises as of the date of such
    destruction, and all rent owed up to the time of such
    destruction shall be paid by Tenant. If Landlord does not
    exercise its right to terminate after such damage, Landlord
    shall proceed with due diligence to restore Tenant’s full
    use and enjoyment of the Leased Premises within one hundred
    eighty (180) days from the date of such destruction.

 

		
	    27.  	
    Casualty Insurance.

 

    Landlord shall maintain fire and extended coverage insurance on
    the Building, including additions and improvements by Tenant
    that are required to be made by Tenant under this Lease and
    which have become or are to become the property of Landlord upon
    vacation of the Leased Premises by Tenant. Said insurance shall
    be maintained with an insurance company authorized to do
    business in Florida in amounts desired by Landlord and at the
    expense or Landlord and payments for losses thereunder shall be
    made solely to Landlord. Tenant shall maintain at its expense
    fire and extended coverage insurance on all of its personal
    property, including removable trade fixtures, located in the
    Leased Premises and on all additions and improvements made by
    Tenant and not required to be insured by Landlord above, and
    Tenant shall provide Landlord with a current certificate
    evidencing such coverage in form reasonably satisfactory to
    Landlord. If the annual premiums to be paid by Landlord shall
    exceed the standard rates because of Tenant’s operations,
    contents of the Leased Premises, or improvements with respect to
    the Leased Premises beyond building standard, resulting in
    extra-hazardous exposure, Tenant shall promptly pay the excess
    amount of the premium upon request by Landlord as additional
    rent.

 

28. Waiver of Subrogation.

     Anything in this Lease to the contrary notwithstanding, Landlord and Tenant each hereby waive
any and all rights of recovery, claim, action or cause of action, against the other, its agents,
officers, or employees, for any loss or damage that may occur to the Leased Premises, or any
improvements thereto, or to the Building of which the Leased Premises are a part, or any
improvements thereto, or any personal property of such party therein, by reason of fire, the
elements, or any other cause which could be insured against under the terms of standard fire and
extended coverage insurance policies referred to in Section 27 hereof, regardless of cause or
origin, including negligence of the other party hereto, its agents, officers or employees, and
covenants that no insurer shall have any right of subrogation against such other party.

29. Liability Insurance.

     Tenant shall maintain comprehensive general public liability insurance against claims for
bodily injury, death or property damage occurring in, on or about the parking areas, Building or
the Leased Premises in a combined single limit of not less than two million ($2,000,000.00)
dollars. Such insurance shall be effected under policies satisfactory to Landlord that shall name
Landlord as an additional insured. Tenant shall furnish Landlord with a certificate evidencing such
coverage that shall contain an undertaking by the insurer to give Landlord ten (10) days prior
written notice of any modification or cancellation of the coverage afforded by such insurance.

30. Subordination and Attornment.

     Tenant agrees that its rights hereunder shall be subordinate to the lien of any mortgage or
mortgages, or the lien resulting from any other method of financing or refinancing, now or
hereafter in force against the Building and to all advances made or hereafter to be made upon the
security thereof. Tenant shall, in the event any proceeding is brought for the foreclosure of, or
in the event a deed is given in lieu of foreclosure of, any mortgage made by Landlord covering the
Building, attorn to the purchaser upon any such foreclosure or sale and recognize such purchaser as
the Landlord under this Lease, provided such purchaser elects to adopt this Lease and gives Tenant
written notice thereof. Tenant agrees to execute any instruments evidencing such subordination and
attainment as may be reasonably required by the holder of any mortgage covering the Building.

31. Estoppel Letter.

     Tenant shall at any time, upon not less than five (5) days’ prior written request from
Landlord, its successors or assigns, execute and deliver in form and substance satisfactory to
Landlord, its successors and assigns, and any mortgagee or beneficiary under a deed of trust
affecting the Leased Premises, an estoppel letter certifying:

     The date upon which the Lease Term commences and expires;

 

 

    The date to which rent had been paid;

 

    That Tenant has accepted the Leased Premises and that all
    improvements have been satisfactorily completed (or if not so
    accepted or completed, the matters objected to by Tenant);

 

    That the Lease is in full force and effect and has not been
    modified or amended (or if modified or amended, a description of
    same);

 

    That there are no defaults by Landlord under the Lease nor any
    existing condition with respect to which the giving of notice or
    lapse of time would constitute a default;

 

    That Tenant has not received any concession;

 

    That Tenant has received no notice from any insurance company of
    any defects or inadequacies in the Leased Premises;

 

    That Tenant has no options or rights other than as set forth in
    this Lease or any amendment thereto described in such letter; and

 

    Such other matters as may be necessary or appropriate to qualify
    Tenant’s response to any of the foregoing statements or
    which Landlord may reasonably request.

 

    If such letter is to be delivered to a purchaser of the
    Building, it shall further include the agreement of Tenant to
    recognize such purchaser as Landlord under this Lease, and
    thereafter to pay rent to the purchaser or its designee in
    accordance with the terms of this Lease. Tenant acknowledges
    that any purchaser or prospective mortgagee of the Building may
    rely upon such estoppel letter and that Landlord may incur
    substantial damages by reason of any failure on the part of
    Tenant to provide such letter in a timely manner.

 

    32.  Lease Commission.

 

    Tenant represents and warrants that Tenant has not dealt with
    any brokers in connection with this Lease, and Tenant agrees to
    indemnify and hold harmless Landlord from any claims of
    broker(s) in connection with this Lease.

 

    33.  Assignment by Landlord.

 

    Landlord shall have the right to transfer and assign, in whole
    or in part, all its rights and obligations hereunder and in the
    Building. In such event and upon such transfer, no further
    liability or obligation shall accrue against the assigning
    Landlord.

 

    34.  Assignment or Sublease.

 

     In the event Tenant should desire to assign this Lease or sublet the Leased Premises or any
part thereof, Tenant shall give Landlord at least sixty (60) days prior notice, which shall specify
the terms and effective date thereof Landlord shall have thirty (30) days following receipt of such
notice to notify Tenant in writing that Landlord elects (a) to terminate this Lease as to the space
so affected as of the effective date specified by Tenant in which event Tenant will be relieved on
such effective date of all further obligation hereunder as to such space, (b) to permit Tenant to
assign or sublet such space, subject, however, to subsequent written approval of the proposed
assignee or subtenant by Landlord, or (c) to refuse to consent (with reasonable cause only) to
Tenant’s proposed assignment or sublease and to continue this Lease in full force and effect as to
the entire Leased Premises. Tenant agrees to reimburse Landlord for attorneys’ fees and expenses
incurred by it in connection with such assignment or sublease. If Landlord should fail to notify
Tenant in writing of such election within such thirty (30) day period, Landlord shall be deemed to
have elected option (b) above. If Landlord elects to exercise option (b) above, Tenant agrees to
provide, at its expense, direct access from the assignment or sublease space to a public corridor
of the Building. No assignment or subletting by Tenant shall relieve Tenant of any obligation under
this Lease. Any attempted assignment or sublease by Tenant in violation of the terms and covenants
of this paragraph shall be void.

35. Hazardous Substances.

     Tenant hereby covenants that Tenant shall not cause or permit any “Hazardous Substances” (as
hereinafter defined) to be placed, held, generated, handled, transported, located or disposed of
in, on, about or at the Leased Premises or the Building or any part thereof and neither the Leased
Premises or the Building nor any part thereof shall ever be used as a dump site or storage site
(whether permanent or temporary) for any Hazardous Substances during the Lease Term. Tenant hereby
agrees to indemnify Landlord and hold Landlord harmless from and against any and all losses,
liabilities, including strict liability, damages, injuries, expenses, including reasonable
attorneys’ fees, costs of any settlement or judgment and claims of any and every kind whatsoever
paid incurred or suffered by, or asserted against, Landlord by any person or entity or governmental
agency for, with respect to, or as a direct or indirect result of, the presence on or under, or the
escape, seepage, leakage, spillage, discharge, emission, discharging or release from, the Premises
of any Hazardous Substance (including, without limitation, any losses, liabilities, including
strict liability, damages, injuries, expenses, including reasonably attorneys’ fees, costs or any
settlement or judgment or claims asserted or arising under the Comprehensive Environmental
Response, Compensation and Liability Act, any so called federal, state or local “Superfund” or
“Superlien” laws, statute, law, ordinance, code, rule, regulation, order or decree regulating,
relating to or imposing liability, including strict liability, substances or standards of conduct
concerning any Hazardous Substance); provided that the foregoing indemnity is limited to matters
arising solely from Tenant’s violation of the covenant contained herein. For purposes of this
Lease, “Hazardous Substances” shall mean and include those elements or compounds which are
contained in the list of hazardous substances adopted by the United States Environmental Protection
Agency (the “EPA”) or the list of toxic pollutants designated by Congress or the EPA or which are
defined as hazardous, toxic, pollutant, infectious or radioactive by any other Federal, state or
local statute, law, ordinance, code rule, regulation,

 

 

order or
decree regulating, relating to, or imposing liability or standards of
conduct concerning, any hazardous, toxic or dangerous waste, substance
or materials as now or at any time hereinafter in effect. Without
limiting the generality of the foregoing, Hazardous Substances shall
include petroleum and petroleum products.

36.
Special Situations.

At
the request of Landlord, Tenant agrees to join in the execution of a
memorandum or short form of this lease to be recorded in the public
records to evidence the fact that work done on behalf of the Tenant
shall not cause liens to attach to the Landlord’s property. Said
memorandum shall incorporate the following clause which is also
hereby incorporated:

“Tenant
agrees that it will make full and prompt payment of all sums
necessary to pay for the cost of all repairs and permitted
alterations, improvements, changes and other work done by Tenant in or
to the premises and further agrees to indemnify and save harmless
Landlord from and against any and all such costs and liabilities
incurred by Tenant and against any and all mechanics’,
materialmen’s, laborers’, or other statutory or common law liens
arising out of or from such work, or the cost thereof, which may be
asserted, claimed or charged against all or any part of the premises.
In no event shall Landlord, or the interest of Landlord in the
premises and surrounding property, be liable for or subjected to
any mechanics’, materialmen’s, laborers’, or other statutory or common
law liens for improvements or work made or done by, or at the
instance of, the Tenant, and this Lease expressly prohibits the
subjecting of the interest of Landlord in the premises and
surrounding property to any mechanics’, materialmen’s, laborers’,
or other statutory or common law liens for improvements made by or at
the instance of the Tenant, or concerning which Tenant is
responsible for payment under the terms of this Lease, or otherwise,
and all persons dealing with, or contracting with, Tenant are hereby
put on notice of these provisions. In the event any notice or claim
of lien shall be asserted or recorded against the interest of Landlord
in the premises on account of, or stemming from, any improvement or
work made or done by or at the instance of Tenant, or any person
claiming by, through or under Tenant, or for improvement or work the
cost of which is the responsibility of Tenant, then Tenant agrees to
have such notice or claim of lien cancelled, discharged, released or
transferred to other security in accordance with applicable Florida
statutes within ten (10) days after notice to Tenant by Landlord,
and in the event Tenant fails to do so, Tenant shall be considered in
default under this Lease with like effect as if Tenant shall have
failed to pay rent when due and within any applicable grace period
provided for payment of same. Tenant agrees, if requested by Landlord,
to join with Landlord in the execution of a short form lease or
memorandum of lease to be recorded in the public records of Brevard
County, Florida for the purpose of giving constructive notice of this
provision of this Lease in accordance with Section 713.10 of the
Florida Statutes.”

37.
Amendments.

This
Agreement may not be altered or amended, except by an instrument in
writing signed by all parties hereto. Tenant agrees that it shall
execute such further amendments to this Lease as may be reasonably
requested by any future holder of a first mortgage on the

 

 

Building, provided such amendments do not materially and adversely affect the interest of Tenant
hereunder.

38. Binding Agreement.

     This Lease shall be “binding upon and inure to the benefit of the successors and assigns of
Landlord, and to the extent assignment may be approved by Landlord hereunder, Tenant’s successors
and assigns.

39. Gender.

     The pronouns of any gender shall include the other genders, and either the singular or the
plural shall include the other.

40. Governing Law.

     This Lease shall be governed, construed and enforced in accordance with the laws of the
State identified on Paragraph 1.

41. Entire Agreement.

     This Lease and the Schedules attached hereto and forming a part hereof set forth the entire
agreement between Landlord and Tenant.

42. Severability.

     The invalidity or unenforceability of a particular provision of this Lease shall not affect
the other provisions hereof, and this Lease shall be construed in all respects as if such invalid
or unenforceable provision were omitted.

43. Payment and Notices.

     Any payment required hereunder shall be deemed to have been duly made when personally
delivered or two business days after the same is deposited in the United States Mail, postage
prepaid, and addressed to Landlord at the address specified in Paragraph 1. All notices, demands,
requests and other communications or documents to be provided under this Lease shall be in writing
and shall be given to the applicable party at its address set forth in Paragraph 1, or such other
address as the applicable party may later specify for that purpose by notice to the other party.
Each notice shall, for all purposes be deemed given and received: (i) if hand delivered, when
delivered; (ii) if given by nationally recognized and reputable overnight delivery service, the
Business Day on which the notice is actually received by the party; or (iii) if given by certified
mail, return receipt requested, postage prepaid, two Business Days after posted with the United
States Postal Service.

44. Mortgagee Protection.

 

 

    Tenant agrees to give any mortgage and/or deed to secure debt
    holders, as to all or a portion of the Building, a copy of any
    notice of default served upon Landlord, provided that prior to
    such notice, Tenant has been notified in writing (by way of
    notice or assignment of rents and leases, or otherwise) of the
    addresses of such mortgage and/or deed to secure debt holders.
    Tenant agrees not to declare Landlord in default or to exercise
    any remedies available by virtue of Landlord’s default
    unless Tenant has given such mortgage and/or deed to secure debt
    holders thirty (30) days after receipt of notice of such
    default or such other amount of time as may be reasonably
    required to cure such default.

 

    45.  Interest
    in the Leased Premises.
    

 

    The Lease shall create the relationship of Landlord and Tenant
    between Landlord and Tenant; no estate shall pass out of
    Landlord; Tenant has only a usufruct, not subject to levy or
    sale.

 

    46.  No
    Recordation.
    

 

    Tenant shall not record this Lease without the express written
    consent of Landlord.

 

    47.  ADA
    Compliance.
    

 

    Tenant assumes all responsibility for compliance of the Leased
    Premises with any and all applicable laws, regulations and
    building codes governing non-discrimination and public
    accommodation laws and commercial facilities (“Public
    Accommodation Laws”), including without limitation, the
    requirements of the American’s With Disabilities Act,
    42 U.S.C. 12-101,
    Public Accommodations Laws and all regulations and promulgations
    thereunder. Tenant shall complete any and all alterations,
    modifications, or improvements to the Leased Premises necessary
    in order to comply with all Public Accommodation Laws during the
    term of this Lease. Landlord shall be responsible for the
    compliance of the Building and adjoining property with the
    provisions of the ADA Act as same may be amended from time to
    time, excepting, however, the Leased Premises. Each party agrees
    to indemnify and hold the other harmless from and against any
    loss, costs, damages, expenses or liabilities, including
    reasonable attorney’s fees incurred by the nondefaulting
    Party, arising out of or in connection with the default of such
    party under this provision.

 

    48.  Multiple
    Counterparts.
    

 

    This Agreement may be executed in multiple counterparts, each of
    which shall be deemed an original.

 

    49.  Radon
    Gas.
    

 

    RADON IS A NATURALLY OCCURRING RADIOACTIVE GAS THAT, WHEN IT HAS
    ACCUMULATED IN A BUILDING IN SUFFICIENT QUANTITIES, MAY PRESENT
    HEALTH RISK TO PERSONS WHO ARE EXPOSED TO IT OVER TIME. LEVELS OF

 

RADON THAT EXCEED FEDERAL AND STATE GUIDELINES HAVE BEEN FOUND IN BUILDINGS IN FLORIDA. ADDITIONAL
INFORMATION REGARDING RADON AND RADON TESTING MAY BE OBTAINED FROM YOUR COUNTY PUBLIC HEALTH UNIT.

     IN WITNESS WHEREOF, the parties hereto have executed the foregoing Lease as of the 2nd
day of March, 2004.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	LANDLORD:	 	 	 	TENANT:
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Marina Towers, LLC	 	 	 	AuthenTec, Inc.

a Delaware Corporation
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	[ILLEGIBLE]
	 	 	 	By:
	 	[ILLEGIBLE]	 	 	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Its:

	 	[ILLEGIBLE]
	 	 	 	Its:
	 	Chief Financial Officer	 	 	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 	 	 	 	 

 

 

EXHIBIT A

FLOOR PLAN

[FLOOR PLAN GRAPHIC]

 

 

EXHIBIT B

RULES AND REGULATIONS

     1. Unless otherwise provided in the Lease to which this Schedule is attached, no
sign, picture, advertisement or notice shall be displayed, inscribed, painted or affixed on
any
part of the outside or inside of the building, except on the glass of the suite entry door of
the
premises and on the Directory Board of the Building, and then only of such color, size, style
and materials as shall be first specified by the Landlord in writing. No “For Rent” signs
shall
be displayed by the Tenant, and no showcases, or obstructions, signs, flags, barber poles,
statuary, or any advertising device of any kind whatever shall be placed in front of the
Building or in the passageways, halls, lobbies, or corridors thereof by the Tenant; and the
Landlord reserves the right to remove all such showcases, obstructions, signs, flags, barber
poles, statuary or, advertising devices and all signs other than those provided for, without
notice to the Tenant and at Tenant’s expense. Tenant shall have the right to hang pictures,
advertisements, signs, paintings and other displays within their Lease Premises provided that
they cannot be seen from outside the building or from the common areas. Tenant shall have
the right, at Tenant’s sole cost, to install a sign on the marquee in front of the building.

     2. The Tenant shall not, without Landlord’s written consent, put up or operate any
steam engine, boiler, machinery or stove upon the premises, or carry on any mechanical
business therein, or use or allow to be used upon the demises oil burning fluids, camphene,
kerosene for heating, warming or lighting, or anything (except as may be supplying the
building for illuminating the premises. No article deemed extra hazardous on account of fire
and no explosives shall be brought into the premises.

     3. Upon the termination of the Lease, the Tenant shall surrender to the Landlord
all keys to the premises.

     4. Safes, furniture, boxes or other bulky articles shall be carried onto the premises
only with written consent of the Landlord first obtained, and then only by means of the
stairways or through the windows of the building as the Landlord may in writing direct, and at
such times and in such manner and by such persons as the Landlord may direct. Safes and
other heavy articles shall be placed by the Tenant in such places only as may be first
specified
in writing by the Landlord and any damage done to the building or to Tenant or to other
persons taking a safe or other heavy article in or out of the demised premises, from
overloading a floor, or in any other manner shall be paid for by the Tenant.

     5. The Tenant shall not allow anything to be placed against or near the glass in
the partitions, between the premises leased and the halls or corridors of the building, which
shall diminish the light in, or prove unsightly from the halls or corridors.

     6. The Tenant shall not allow anything to be placed on the outside without
window ledges of the premises, nor shall anything be thrown by the Tenant or its employees,
out of the windows of the Building.

 

 

	 	 	 	 
	 	7.	 	The water and wash closets and other plumbing fixtures shall
not be used for any purposes other than those for which they were
constructed, and no sweeping, rubbish, rags, or other substances
shall be thrown therein. All damages resulting from any misuse of the
fixtures shall be borne by the Tenant.
	 
	 	8.	 	No bicycle or other vehicle, and no animal (other than seeing
eye dogs) shall be brought into the offices, halls, corridors,
elevators, or any other parts of the building, by the Tenant, its
agents or employees.
	 
	 	9.	 	No person shall disturb the occupants of this or any
adjoining building premises by the use of any musical instruments,
unseemly noises, whistling, singing or in any other way.
	 
	 	10.	 	The entrances, corridors, passages, stairways and elevators
shall not be under the exclusive control of the Landlord and shall
not be obstructed, or used by the Tenant for any other purpose than
ingress to and from the leased premises, except by normal use for
receptionists.
	 
	 	11.	 	Canvassing, soliciting and peddling in the building is
prohibited, and Tenant shall cooperate to prevent the same.
	 
	 	12.	 	All office and other equipment of any electrical or
mechanical nature shall be placed by Tenant in the demised premises
in approval settings to absorb or prevent any vibration noise or
annoyance.
	 
	 	13.	 	There shall not be used in any space, or in the public halls
of the building by Landlord or by any jobbers or others, in the
delivery or receipt of merchandise, any hand trucks, except those
equipped with rubber tires and side guards.
	 
	 	14.	 	The Landlord reserves the right in consultation with Tenant
to make such other and further reasonable rules and regulations as in
its judgment may from time to time be needful for the safety, care
and cleanliness of the premises, and for the preservation of good
order therein, and any such other or further rules and regulations
shall be binding upon the parties hereto with the same force and
effects as if they had been inserted herein at the time of the
execution hereof.
	 
	 	15.	 	The Tenant shall provide a protective heavy plastic pad under
all furniture that is equipped with castors. The Tenant shall also
provide suitable protection under all planters and flower pots which
are placed on the carpeting.

 

 

ADDENDUM
TO LEASE

     THIS
ADDENDUM TO LEASE (“Addendum”) is made and entered into
this 16 day of June 2004 by and between MARINA TOWERS, LLC. A Florida
limited liability company (“Landlord”) and AUTHENTEC INC.,
a Delaware corporation, (“Tenant”) and is intended to amend
and modify that certain Lease Agreement dated March 4, 2004. The
promises, covenants, agreements and declarations made and set forth
herein are intended to and shall have the same force and effect as if
set forth at length in the body of the Lease. Defined terms set forth
herein shall have the same meaning as such terms are given in the
Lease. To the extent that the provisions of this Addendum are
inconsistent with the terms and conditions of the Lease, the terms
and conditions hereof shall control. In order to memorialize previous
oral agreement modifying the terms of the Lease, the parties hereto
agree, in writing as follows:

	1.	 	Addition of Additional Space to
Premises.  It is understood and agreed that the
Premises shall be deemed to include Suite 260 within the
Building consisting of 522 square feet of rentable area. Said
additional space shall be deemed to included with the terms of the
Lease beginning on May 1, 2004. Said additional space shall be leased
at the initial rate of $15.50 per square foot. Said rate shall
increase on January 1st of each year. Accordingly, the monthly
payment of base rent shall, beginning on June 1, 2004, be increased
by $674.25 per month. All costs related to the build out of the
rentable space will be paid by the Tenants.

	 
	2.	 	Continued Effectiveness.  Except as modified
hereby, the Lease shall remain in full force and effect.
	 
	3.	 	Fax Counterparts.  It is understood and
agreed that this Addendum shall be and become binding upon being
excecuted in counterparts. Additionally, telefax signatures shall be
binding the same as originals.
	 
	 	 	IN WITNESS WHEREOF, the parties have caused these presents to
be executed in due form of law as of the day and year first above
written.

	 	 	 	 	 	 	 
	“LANDLORD”	 	“TENANT”
	 	 	 	 	 	 	 
	MARINA TOWERS, LLC, a
Florida Limited liability company	 	AUTHENTEC INC, a
Delaware Corporation
	 	 	 	 	 	 	 
	By:	 	/s/
    [ILLEGIBLE]	 	By:	 	/s/
    Gregory M. Teesdale
	Name:  [ILLEGIBLE]	 	Name:  Gregory M.
Teesdale
	Title:  President	 	Title:  Vice President

 

 

2nd ADDENDUM TO LEASE

     
THIS ADDENDUM TO LEASE (“Addendum”) is made and entered into this 16th day of February, 2005 by
and between MARINA TOWERS, LLC. A Florida Limited Liability Company (“Landlord”) and AUTHENTEC,
INC., A Delaware Corporation, (“Tenant”) and is intended to amend and modify that certain Lease
Agreement dated March 2, 2004. The promises, covenants, agreements and declarations made and set
forth herein are intended to and shall have the same force and effect as if set forth as length
in the body of  the Lease. Defined terms set forth herein shall have the same meaning as such terms
are given in the Lease. To the extent that the provisions of this Addendum are inconsistent with
the terms and conditions of the Lease, the terms and conditions hereof shall control. In order to
memorialize previous oral agreement modifying the terms of the Lease, the parties hereto,  in
writing as follows:

	 	1.	 	Addition of ‘Additional Space to Premises.
 It is understood and agreed that the
Premises shall be deemed to include Suite 200 within the Building consisting of
4,261 square feet of rentable area. Said additional space shall be deemed to be
included with the terms of the Lease commencing on or about March 15, 2005.
Said additional space shall be leased at the initial rate of $ 18.50/sq ft. Said rate
shall increase $.50 per sq ft on January 1st of each year. Accordingly, the
monthly payment of base rent beginning at time of occupancy will be increased
by $6,569.04 per month plus Florida State Sales Tax; With the exception of
carpeting, construction of interior wall, painting of all walls and columns, ceiling
title, plumbing, sink, refrigerator, kitchen cabinet, perimeter wall electric wiring
and window blinds, all build out costs of the rentable space will be paid by the
Tenant.

	 
	 	2.	 	Continued Effectiveness. Except as modified hereby, the Lease shall remain
in full force and effect. 
	 
	 	3.	 	Fax Counterparts. It is understood and agreed that this Addendum shall be
and become binding upon being executed in counterparts. Additionally,
telefax signatures shall be binding the same as originals.

	 
	 	4.	 	Build Out of Suite. Landlord will be responsible for
costs related to the labor and materials associated with dry wall,
carpet, cove base molding, ceiling tile, perimeter wall
electric, removal of overhead computer lines as hot and cold water
supply, blinds and other
miscellaneous costs  associated with this scope of work. Tenant will be responsible for all
IT costs related to the drop down electric for cubicles and computers.

 

 

     IN WITNESS WHEREOF, the parties have caused these present to be
Executed in due form of law as of the day and year first above
written:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	“LANDLORD”	 	 	 	“TENANT”
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	MARINA TOWERS, LLC. A Florida

Limited Liability Company	 	 	 	AUTHENTEC INC., a Delaware

Corporation
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	[ILLEGIBLE]
	 	 	 	By:
	 	[ILLEGIBLE]	 	 	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Name:

	 	[ILLEGIBLE]
	 	 	 	Name:
	 	[ILLEGIBLE]	 	 	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Title:

	 	[ILLEGIBLE]
	 	 	 	Title:
	 	[ILLEGIBLE]

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