Document:

Exhibit 10.8

 

	

 

INTRACOASTAL POINTE OFFICE BUILDING 

 

LEASE AGREEMENT

TENANT:

DYADIC INTERNATIONAL, INC.

LANDLORD:

QUENTIN PARTNERS CO.

as Agent for Intracoastal Pointe, Inc.

851 S.E. Johnson Avenue, Suite 100

Stuart, Florida 34994

772-220-4127

December,  2010

 

INTRACOASTAL POINTE OFFICE BUILDING LEASE AGREEMENT

THIS LEASE AGREEMENT (sometimes hereinafter referred to as the "Lease") is made and entered into this 30th Day of December, 2010 by and between Quentin Partners Co. as Agent for lntracoastal Pointe, Inc., (Florida corporations) (hereinafter collectively called "Landlord"), whose address for purposes hereof is 851 S.E. Johnson Avenue, Suite 100, Stuart, Florida 34994; and Dyadic International, Inc., (hereinafter called "Tenant"). Tenant's address, for purposes hereof until commencement of the term of this Lease, being 140 lntracoastal Pointe Drive, Suite 404, Jupiter, Florida 33477 and thereafter being that of the Leased Premises (hereinafter defined).

WITNESSETH:

		1.	LEASED PREMISES: Subject to and upon the terms, provisions, covenants and conditions hereinafter set forth, and each in consideration of the duties, covenants and obligations of the other hereunder, Landlord does hereby lease, demise and let to Tenant and Tenant does hereby lease, demise and let from Landlord those certain premises (hereinafter sometimes called the "Leased Premises") in the lntracoastal Pointe Office Building (hereinafter sometimes referred to as "Building") located at 140 lntracoastal Pointe Drive, Jupiter, Florida 33477, such Leased Premises being more particularly described as follows:

Suites 404 and 405, 4,872± square feet of Gross Rentable Area, located on the fourth floor of the Building.

The term "Gross Rentable Area" as used herein, shall refer to all area measured from the outside surface of the outer glass or finished walls of the building to the outside surface of the opposite outer wall, glass, or in the case of multi-tenant floors, to the midpoint of the walls separating the Leased Premises of adjacent tenants. The term "Gross Rentable Area" includes a pro rata share of all common areas and facilities of the Building, but not limited to, bathrooms, hallways and service facilities, the rent and expenses of which are to be shared by Tenant proportionately. No deductions from Gross Rentable Area are made for columns or projections necessary to the Building. The Gross Rentable Area in the Leased Premises has been calculated on the basis of the foregoing definition and is hereby stipulated for all purposes hereof to be 4,872± square feet, whether the same should be more or less as a result of minor variations resulting from actual construction and completion of the Leased Premises for occupancy so long as such work is done substantially in accordance with the approved plans.

 

	   2.	
A.

	
TERM: The term of this Lease Agreement on the Leased Premises shall be for a period of (36) thirty-six months. The Commencement Date of the term shall be January 1, 2011. Landlord will make all diligent attempts to have space ready. The rent for partial months shall be prorated. The Term of the

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Lease shall expire (unless sooner terminated as provided herein) at 11:59 p.m. E.D.T. on December 31, 2013.

 

		
 B.  

	

Early Termination:

Tenant shall have the right to terminate the Lease with a six (6) month notice at any time on or after January 1, 2012 by delivering written notice ("Early Termination Notice") to Landlord its intention to do so.

 

		3.	A.      Annual Rent: During the term of this Lease, Tenant agrees and covenants to pay the Landlord Annual Rent as follows:

1/01/11 - 12/31/13: $11.50 per square foot; $56,028.00/year; $4,669.00/month*

*Tenant will pay first month's rent plus CAM as defined in the lease (Section 3C, currently at $8.00 psf) and sales tax (currently at 6.5%) totaling $8,431.61, upon lease execution.

Total Annual Rent per year is payable without demand, notice or offset in advance in equal monthly installments of one-twelfth of the Annual Rent due and payable on the first day of each and every calendar month of the term of the Lease, in the currency of the United States of America at the offices of Landlord or elsewhere as designated from time to time by Landlord's written notice to Tenant. The monthly installment of Annual Rent shall be prorated in the case of partial months. In addition to the Annual Rent, Tenant shall pay to the Landlord on the first day of each month a sum equal to any sales tax, tax on rentals, and any other charges, taxes or impositions, now in existence or hereafter imposed based upon the privilege of renting the Leased Premises or upon the amount of Annual Rent, pro rata expenses, and all other amounts owed by Tenant hereunder. Nothing herein shall, however, require Tenant to pay any Federal or State taxes on income imposed upon Landlord.

The Tenant will pay for the electric for the Leased Premises, which shall be separately metered. The Tenant will be responsible to maintain its Leased Premises space (including all water connections, appliances and kitchens).

LATE CHARGES.  The parties agree that late payment by Tenant to Landlord of rent will cause Landlord to incur costs not contemplated by this lease, the amount of which is extremely difficult to ascertain.  Therefore, the parties agree that if any installment of rent is not received by Landlord within 7 days after rent is due, Tenant will pay to Landlord a sum equal to 15% of monthly rent as a late charge.

INSUFFICIENT FUNDS. If any of Tenant's checks bounce, Landlord will charge a fee of $100.00 for administrative cost plus all bank fees.

		B.	PRORATA SHARE OF EXPENSES AS ADDITIONAL RENT: In addition to the Annual Rent and other sums to be paid hereunder by Tenant, Tenant

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shall pay a prorata share of all expenses incurred by Landlord in connection with the ownership, operation, maintenance and management of the Building and the land upon which it is located. Tenant's pro-rata share shall be $8.00 per square foot.

The expenses for which the Tenant shall pay a prorata share according to the aforesaid formula include but are not limited to the following:

		(1)	Real Property Taxes and Assessments. Tenant shall pay its pro-rata share of all real property taxes and assessments and all tangible personal property taxes which may be levied or assessed by any lawful authority against the land, the improvements located on the land (including the Building) and all personal property owned by Landlord and used in connection with the operation and management thereof. A tax bill or photocopy thereof submitted by Landlord to Tenant shall be sufficient evidence of the amount of taxes assessed or levied against the property to which the bill relates. The real property taxes and assessments herein referred to shall be the real property taxes and assessments on the property with a physical address of 140 lntracoastal Pointe Drive, Jupiter, Florida 33477. Tenant shall be responsible for paying all taxes on Tenant's own personal property and all taxes due with respect to any leasehold improvements which exceed the value of the improvements provided by Landlord to Tenant.

		(2)	Insurance. Tenant shall pay its prorata share of the cost of all insurance coverage carried by Landlord with respect to the Building and land, including without limitation insurance against liability, casualty, loss of damage to the Building, rent loss, flood insurance, and worker's compensation.

		(3)	Utilities. Tenant shall pay its prorata share of the cost of all utilities including electricity, water, gas, fuel, trash and garbage collection fees, Tenant Association fees, drainage district tax, and any sewer service charges for the Building (but as provided in Section 10, Tenant shall be responsible for paying all electricity to the Leased Premises).

		(4)	General Services and Expenses (for the Building Common Areas):

		(a)	Janitorial services.

		(b)	Maintenance and repair.

		(c)	Landscaping maintenance, supplies and refurbishing.

		(d)	Cleaning, maintaining, resurfacing, and striping of the parking area.

		(e)	Operatorless elevator service and maintenance.

		(f)	Supplies for restrooms and other public portions of the Building and the property.

		(g)	Maintenance of air conditioning, heating, sprinkler, access control and other mechanical systems.

		(h)	Building management fees.

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		(i)	Expenses for access control if and to the extent provided by Landlord. Inthe event Landlord does provide access control, Tenant specifically agrees that Landlord shall not be liable in the event of any loss or damage suffered by Tenant as a result of any failure to exclude access to any unauthorized personnel.

		(j)	Reserve for renewal, replacement, and capital improvements of ten percent of annual expenses excluding the reserve for renewal and replacement.

		(k)	Amortization of the cost of capital improvements (together with a reasonable finance charge) as may be required by governmental authority.

		(I)	Professional fees (including attorneys and accountants) incurred in connection with the operation of the Building; and

		(m)	Compensation of employees at the level of building manager and below in connection with operation of the Building.

The costs to be shared on a prorata basis by Tenant shall not include payments of principal and interest on any mortgage or deed of trust upon the building, or the costs of improvements made for particular tenants.

Landlord does not warrant that any of the services will be free from interruption caused by repairs, renewal, improvement, alterations, strikes, lockouts, accidents, inability of Landlord to obtain fuel or supplies or any other causes. Any such interruption of service shall never be deemed an eviction or disturbance of Tenant's use and possession of the premises or any part thereof or render the Landlord liable to the Tenant for damages or relieve the Tenant from performance of the Tenant's obligations under this Lease. Landlord agrees, however, that Landlord will make reasonable efforts at all times to promptly remedy any situation which might interrupt such services.

		C.	OTHER PROVISIONS AFFECTING RENTAL PAYMENTS AND ADDITIONAL RENT: Notwithstanding anything in the foregoing to the contrary, the Tenant's obligations under Section 3(B) shall be computed as the costs of owning, operating and managing the Building is $8.00* per square foot (base CAM rate). The prorata share shall be $8.00 p.s.f. over the term of the Lease. Tenant shall pay in advance, in monthly installments as herein set forth. The amount due under this Section shall be paid by Tenant to Landlord without notice or demand and without abatement, deduction or set-off in monthly installments, in advance on the first day of each calendar month during the term of this Lease as provided for herein. Landlord shall have all the rights and remedies provided herein or by law for the purposes of collection thereof. Tenant may not disclose any information regarding Building expenses without the approval of Landlord.

		4.	SECURITY DEPOSIT: Tenant concurrently with the execution of this Lease shall pay the sum of zero dollars. It is understood that Tenant paid a previous Landlord

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a security deposit of four thousand four hundred twenty-three dollars and 84 cents ($4,423.84), which was never transferred to the current Landlord because the previous Landlord went out of business. Tenant's lease signed June 28, 2001 stated that Quentin Partners Co. would assume responsibility for this security deposit of $4,423.84 provided Tenant remained in good standing through December 31, 2005, which was the case. As a courtesy for tenant goodwill, this sum shall be deemed by Landlord as security for the payment by Tenant of the rents and all other payments herein agreed to be paid by Tenant and for the faithful performance by Tenant of the terms, provisions, and conditions of this Lease. Landlord, at Landlord's option, may at the time of any default by Tenant under any of the terms, provisions, covenants or conditions of this Lease apply said sum or any part thereof towards the payment of the rents and all other sums payable by Tenant under this Lease. Landlord will notify the Tenant in writing when this action has been taken. Tenant shall remain liable for any amounts that such sum shall be insufficient to pay and shall within three (3) days after demand by Landlord restore the security deposit to the amount originally required hereby. Landlord may exhaust any or all rights and remedies against Tenant before resorting to the security deposit, but nothing herein contained shall require or be deemed to require Landlord to do so. In the event the deposit shall not be utilized for any such purpose, then such deposit shall be returned by Landlord to Tenant after the expiration of the term of this Lease. Landlord shall not be required to pay Tenant any interest on the security deposit.

		5.	USE: The Tenant will use and occupy the Leased Premises for the following use or purpose and for no other use or purpose: Office.

Notwithstanding anything to the contrary in this Lease, the Leased Premises shall not be used for any purpose which would (i) adversely affect the appearance of the Building, (ii) except for general office use, be visible from the exterior of, or the public areas of the Building, (iii) adversely affect ventilation in other areas of the Building (including without limitation the creation of offensive odors), (iv) create unreasonable elevator loads, (v) cause structural loads to be exceeded, (vi) create unreasonable noise levels, (vii) violate building codes, zoning ordinances, or other applicable laws or otherwise constitute  illegal use, (viii) adversely affect the mechanical, electrical, plumbing or other base Building systems, (ix) result in the generation, treatment, storage, discharge, disposal, possession, processing or other handling of chemicals or any hazardous material in the Leased Premises, the Building, or any Building systems, including in particular disposal in the base Building plumbing, heating, ventilating or air-conditioning systems, (x) involve printing, photographic processing or other process involving the use of chemicals and equipment not generally used in office buildings, or (xi) otherwise unreasonably interfere with Building operations or other tenants of the Building. (xii) Tenant is responsible for any and all damage throughout the building which might result from its shipping and/or receiving operations. In all events, Tenant shall not engage in any activity which is not in keeping with the standards of the Building.

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		6.	IMPROVEMENTS: Tenant may create two offices from a conference room and hallway in the southwest corner of Suite 405 (see plan). Tenant shall maintain all improvements installed in accordance with said plans. The final plans for Tenant's interior improvements ("Tenant Improvements") shall be submitted to Landlord and shall be subject to approval by Landlord and the Town of Jupiter prior to commencement of construction. Landlord's approval shall not be unreasonably withheld provided that such improvements do not adversely affect Building structure or Building systems and are not visible from the exterior of the Leased Premises. The plans submitted by Tenant shall not be deemed final unless they are sufficient to meet all requirements necessary to allow Landlord to obtain a building permit. After the plans have been submitted to and approved by Landlord no changes shall be permitted without Landlord's written consent.

Should Tenant desire water and sewer service within the Leased Premises other than those existing, said installation and connection shall be at the Tenant's sole expense. Tenant shall be responsible for damages, if any, to the Building or to the Leased Premises, as a result of the original installation, leaks, water pipe breakage or other failure in the system which may occur after the original installation.

All Tenant Improvements made to the Leased Premises shall become the property of the Landlord upon expiration or termination of this Lease.

		7.	CONTRACTORS. All outside contractors will be licensed, insured for liability and carry an occupational license valid in the municipality in which they are going to work. Landlord must be notified of the names of these contractors and provided with a copy of their licenses and insurance.  (see Section 14 - Liens.)

		8.	TENANT'S RIGHTS AND RESTRICTIONS AS TO BUSINESS SIGNS: Tenant may, at its own expense, erect or place, of a quality, size, and in a manner approved in writing by Landlord, and based on Landlord's building standard, graphics identifying Tenant on the main entrance door of the Leased Premises or as otherwise designated by Landlord. Such signs shall be kept in a good state of repair and Tenant shall repair any damage that may have been done to the Leased Premises by the erection, existence or removal of such signs. At the end of the Lease term, Tenant shall remove the signs at its expense.

Except as provided above, no sign, notice or other advertisement shall be inscribed, painted, affixed or displayed on any of the windows or on the exterior of any of the doors of the Leased Premises, nor anywhere visible from outside the Leased Premises without prior written consent of Landlord (which may be granted or withheld by Landlord in its sole discretion).

Landlord agrees that during the entire term of this Lease Landlord shall make space available on the building directory board of the building for the name of Tenant's firm, company, corporation or business entity. Landlord shall maintain the Tenant's name on the sign, unless a federal, state or local code prohibits either the sign or

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limits use of such sign. Landlord has the right to approve signage prior to installation.

		9.	CONDITION OF PREMISES: Tenant is in possession of the Leased Premises and Tenant acknowledges the Leased Premises are in good and satisfactory condition.

		10.	QUIET POSSESSION: Upon payment by Tenant of the rental herein provided, and upon the observance and performance of all terms, provisions, covenants and conditions on Tenant's part to be observed and performed, Tenant shall, subject to all of the terms, provisions, covenants and conditions of this Lease Agreement, peaceably and quietly hold and enjoy the Leased Premises for the term hereby leased.

		11.	TENANT'S ELECTRICAL: Tenant shall use only office machines and equipment that operate on the Building's standard electric circuits, but which in no event overload the Building's standard electrical circuits from which the Tenant obtains electric current or which will, in the opinion of Landlord, interfere with the reasonable use of the Building by Landlord or other tenants or which shall create a hazard within the Leased Premises. Tenant shall comply with all governmental mandates regarding temperature control. Tenant shall be responsible for payment of all charges for electric consumption within the Leased Premises.

		12.	CHARGES FOR SERVICE: Any charges against Tenant by Landlord or its subsidiaries or agents for services or for work done on the Leased Premises by order of Tenant, or otherwise accruing under this Lease, shall be considered as rent due hereunder for all purposes.

		13.	REMEDIES UPON TENANT'S DEFAULT. In the event Tenant shall abandon or vacate the Leased Premises or at any time be in default in the payment when due of Annual Base Rent, or other charges herein required to be paid by Tenant or in the observance or performance of any of the other covenants and agreements required to be performed and observed by Tenant hereunder and any such default shall continue for a period of three (3) days after written notice to Tenant for monetary obligations and ten (10) days after written notice to Tenant for all other obligations, then Tenant shall be in default hereunder and Landlord shall be entitled to any and all remedies available at law or in equity and all other remedies specifically provided herein. Without limiting the generality of the foregoing, Landlord may:

		(A)	Terminate this Lease and Tenant's right to possession of the Leased Premises by any lawful means, in which case this Lease shall terminate and Tenant shall immediately surrender possession of the Leased Premises to Landlord. In such event Landlord shall be entitled to recover from Tenant all damages incurred by Landlord by reason of Tenant's default including, but not limited to, the cost of recovering possession of the Leased Premises, expenses of reletting, reasonable attorney's fees, and any real estate

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commission paid; and the difference at the time of termination between the amount by which the unpaid Annual Base Rent (as is reasonably projected by Landlord) for the balance of the term.

		(B)	Maintain this Lease in full force and effect and allow Tenant to retain possession of the Leased Premises, in which case this Lease shall continue in effect whether or not Tenant shall have abandoned the Leased Premises. In such event, Landlord shall be entitled to enforce all of Landlord's rights and remedies under this Lease, including the right to recover the Annual Base Rent and other charges as they become due hereunder; and/or

		(C)	Terminate Tenant's right of possession, but not this Lease, whereupon Landlord will use commercially reasonable efforts to attempt to relet the Leased Premises for Tenant's account; in which case Tenant shall remain liable to Landlord for the amount, if any, by which the rental and other charges required to be paid hereunder exceed the net amount actually received by Landlord from any such reletting (after deducting from the rental received from the new tenant any amounts paid by Landlord in obtaining the new lease including all real estate commissions, concessions, and other costs). Such amounts owed by Tenant shall be paid to Landlord from time to time upon demand; and/or

		(D)	Declare the balance of the Annual Rent and the balance of Tenant's pro rata share of expenses (agreed at $8.00. Psf) for the entire

remaining term of this Lease to be immediately due and payable the space would then continue to be available to Tenant; and/or

(E)          Charge a fifteen percent (15%) fee on any outstanding balance; and/or

		(F)	Pursue any other remedy now or hereafter available to Landlord at law or equity.

During any period in which Tenant is in default beyond any applicable grace period Tenant shall not be entitled to exercise any options, privileges, or rights contained in this Lease.

		14.	ALTERATIONS AND REPAIRS: Tenant will, at Tenant's own expense, keep the Leased Premises in good repair and tenantable condition during the Lease term and will replace at its own expense any and all broken glass caused by Tenant in and about said Leased Premises.

Tenant will make no alteration, additions or improvements in or to the Leased Premises without the written consent of Landlord, and all additions, fixtures, carpet or improvements, except office furniture and trade fixtures which shall be readily

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removable without injury to the Leased Premises, shall be and remain a part of the Leased Premises at the expiration of this Lease: provided, however, if Landlord requests removal of any alterations, additions or fixtures installed by Tenant, Tenant shall cause them to be removed at Tenant's cost.

		15.	LIENS: Tenant agrees to pay all liens of contractors, subcontractors, mechanics, laborers, material men, and other items of like costs and charges, including bond premiums for release of liens and attorney's fees reasonably incurred in and about the defense of any suit in discharging the Leased Premises or any part thereof from any liens, judgments or encumbrances caused or suffered by Tenant. In the event any such lien shall be made or filed, Tenant shall bond against or discharge the same within ten (10) days after the same has been made or filed. The expenses, costs and charges above referred to shall be considered as rent due for all purposes of this Lease.

Tenant shall not have any authority to create any liens for labor or materials on the Landlord's interest in the Leased Premises or the Building and all persons contracting with the Tenant for the destruction or removal of any facilities or other improvements or for the erection, installation, alteration or repair of any facilities or other improvements on or about the Leased Premises, and all material men, contractors, mechanics and laborers, are hereby charged with notice that they must look only to the Tenant's interest in the Leased Premises to secure the payment of any bill for work done or material furnished at the request or instruction of Tenant.

		16.	PARKING: Landlord grants to Tenant the right to use in common with other tenants entitled to similar use thereof the parking areas for parking automobiles of Tenant's customers, clients and invitees.

Landlord may require Tenant and its employees to use a parking area designated by Landlord as an employee parking area and Tenant shall take all necessary action to assure that Tenant's employees shall use the designated employee parking area as designated by Landlord.

Any reserved parking spaces shall be in areas designated by Landlord. Landlord shall not be liable for any damage of any nature whatsoever to, or any theft of, automobiles or other vehicles or appurtenant parking areas. Tenant has three reserved parking spaces, numbered 6, 7, 8.

		17.	ESTOPPEL CERTIFICATE: Tenant agrees that from time to time, upon not less than seven (7) days prior request by Landlord, Tenant will deliver to Landlord a statement in writing certifying: (a) that this Lease is unmodified and in full force and effect or, if there have been modifications, that the Lease, as modified, is in full force and effect and stating the modifications; (b) the dates to which the rent and

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other charges have been paid; (c) that Landlord is not in default under any provisions of this Lease, or if in default, the nature thereof in detail; and (d) such other matters as Landlord shall reasonably request.

		18.	LANDLORD'S MORTGAGE: If the Building and/or Leased Premises are at any time subject to a mortgage, and Tenant has received written notice from Mortgagee of same, then in any instance in which Tenant gives notice to Landlord alleging default by Landlord hereunder, Tenant will also simultaneously give a copy of such notice to Landlord's Mortgagee and Landlord's Mortgagee shall have the right (but not the obligation) to cure or remedy such default during the period that is permitted to Landlord hereunder, plus an additional period of thirty (30) days, or such greater period as may reasonably be required for the Mortgagee to effect the cure (including if title or possession by the Mortgagee is required to effect the cure any period required by Mortgagee to foreclose or otherwise obtain title and possession). Tenant will accept such curative or remedial action (if any) taken by Landlord's Mortgagee with the same effect as if such action had been taken by Landlord.

This Lease shall be subject and subordinate to any mortgage now or hereafter covering the Building or Leased Premises. The foregoing provision shall be self­ operative but, Tenant shall upon Landlord's request promptly execute any instrument or instruments which Landlord may deem necessary or desirable to further evidence the subordination of the Lease to any and all such mortgages and/or deeds of trust. Tenant hereby appoints Landlord and or Landlord's successor(s) in interest as Tenant's attorney-in-fact to execute any and all documents necessary to effectuate all the provisions of this Section.

		19.	ASSIGNMENT BY LANDLORD: If the interests of Landlord under this Lease shall be transferred voluntarily or by reason of foreclosure or other proceedings for enforcement of any mortgage on the Leased Premises, Tenant shall be bound to such transferee (herein sometimes called the "Purchaser"), for the balance of the term hereof remaining and any extensions or renewals thereof which may be effected in accordance with the terms and provisions hereof, with the same force and effect as if the Purchaser were the Landlord under this Lease, and Tenant does hereby agree to attorn to the Purchaser, as its Landlord, said attornment to be effective and self-operative without the execution of any further instruments upon the Purchaser succeeding to the interest of Landlord under this Lease. The respective rights and obligations of Tenant and the Purchaser upon such attornment to the extent of the then remaining balance of the term of this Lease and any such extensions and renewals shall be and are the same as those set forth herein. In the event of such transfer of Landlord's interest, Landlord shall be released and relieved from all liability and responsibility thereafter accruing to Tenant under this Lease or otherwise, and Landlord's successor by acceptance of rent from Tenant hereunder shall become liable and responsible to Tenant in respect to all obligations of the Landlord under this Lease.

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		20.	ASSIGNMENT AND SUBLEASING BY TENANT: Without the written consent of Landlord first obtained in each case, Tenant shall not assign, transfer, mortgage, pledge, or otherwise encumber or dispose of this Lease for the term hereof, or underlet the Leased Premises or any part thereof or permit the Leased Premises to be occupied by anybody other than the Tenant. No assignment of this Lease nor sublease of the Leased Premises shall release Tenant from any obligations contained herein. The Landlord may after default by the Tenant collect or accept rent from the assignee, undertenant, or occupant and apply the net amount collected or accepted to the rent and other amounts herein reserved, but no such collection or acceptance shall be deemed a waiver of this covenant or the acceptance of the assignee, undertenant or occupant as Tenant, nor shall it be construed as, or implied to be, a release of the Tenant from the further observance and performance by the Tenant of the terms, provisions, covenants and conditions herein contained. In the event Tenant desires Landlord's consent to any assignment or sublease Tenant shall provide such information as Landlord shall reasonably require to evaluate the proposed assignee or subtenant, including without limitation, name, references, audited financial statements and nature of business. Any assignee or subtenant must agree in writing to be bound by all terms and provisions hereof (except that as to subtenants, the subtenant's rental will be governed by its sublease).

		21.	SUCCESSORS AND ASSIGNS: All terms, provisions, covenants and conditions to be observed and performed by Tenant shall be applicable to and binding upon Tenant's respective heirs, administrators, executors, successors and assigns, subject, however, to the restrictions as to assignment or subletting by Tenant as provided herein. All expressed covenants of this Lease shall be deemed to be covenants running with the land.

		22.	INSURANCE; TENANT'S INDEMNIFICATION: Tenant shall, during the entire Lease term, at its sole cost and expense, provide and keep in full force and effect a policy of Commercial General Liability insurance covering the Leased Premises, and the business operation by Tenant in an amount of not less than $3,000,000.00 combined single limit liability for bodily injury and property damage. The policy shall name Quentin Partners Co. and lntracoastal Pointe Inc., and any person, firms or corporations designated by Landlord as an additional insured, and Tenant as insured, and shall contain a clause that the insurance carrier will not cancel or change the insurance without first giving the Landlord ten (10) days prior written notice. The insurance shall be with an insurance company acceptable to Landlord and the insurance carrier shall provide Landlord a true copy of said policy and a certificate of insurance.

Tenant agrees to pay any increase in premiums for fire and extended coverage insurance that may be charged during the term of this Lease resulting from the activity of Tenant or merchandise stored by Tenant in the Leased Premises, whether or not Landlord has consented to the same. Bills for such additional premiums shall be rendered by Landlord to Tenant at such times as Landlord may

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elect, and shall be due from, and payable by Tenant when rendered, and the amount thereof shall be deemed to be additional rent.

Tenant will indemnify Landlord and save it harmless from and against any and all claims, actions, damages, liability and expense in connection with loss by fire, personal injury and/or damage to property arising from or out of any occurrence in, upon or at the Leased Premises or any part thereof, or occasioned wholly or in part by any act or omission of Tenant, its agents, guests, contractors, employees, servants, subtenants, assignees, or concessionaires. Tenant shall also pay all costs, expenses and reasonable attorneys' fees (including appeals) that may be incurred or paid by Landlord in enforcing the covenants and agreements in this Lease.

Tenant shall replace, at the expense of Tenant, any and all plate and other glass damaged or broken arising from or out of any act of Tenant, its agents, guests, contractors, employees, servants, subtenants or concessionai res.

Landlord and Tenant hereby waive any and all rights of recovery against each other, their officers, employees and agents, for loss occurring to the Leased Premises to the extent covered by insurance proceeds provided that the applicable insurance policy contains a waiver of a right of subrogation. Each party shall use reasonable efforts to obtain a waiver of subrogation from the insurance carrier providing their insurance.

		23.	MUTUAL INDEMNITIES: In consideration of the Leased Premises being leased to Tenant for the above rental, Tenant agrees: that Tenant, at all times, will indemnify and hold harmless Landlord from all losses, damages, liabilities and expenses, which may arise or be claimed against Landlord and be in favor of any persons, firms or corporations, for any injuries or damages to person or property, consequent upon or arising from any acts, omissions, neglect or fault of Tenant, its agents, servants, employees, licensees, visitors, customers, patrons or invitees, or consequent upon or arising from Tenant's failure to comply with any laws, statutes, ordinances, codes or regulations or any provisions of this Lease. Landlord shall not be liable to Tenant for any damages, losses or injuries to the persons or property of Tenant which may be caused by the acts, neglect, omissions or faults of any persons, firms or corporations, except when such injury, loss or damage results from gross negligence or willful misconduct of Landlord, its agents or employees. All personal property placed or moved into the Leased Premises or the Building shall be at the risk of Tenant or the owners thereof, and Landlord shall not be liable to Tenant for any damages to said personal property. Tenant shall maintain at all times during the term of this Lease an insurance policy or policies in an amount or amounts sufficient to indemnify Landlord and to pay Landlord's damages,  if any, resulting from any matter set forth in this Section.

In case Landlord shall be made a party to any third party litigation commenced by or against Tenant, Tenant shall protect and hold Landlord harmless and shall pay

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all cost, expenses and reasonable attorney's fees incurred or paid by Landlord in connection with such litigation.

In consideration of the Leased Premises being leased to Tenant for the above rental, Landlord agrees: that Landlord, at all times, will indemnify and hold harmless Tenant from all losses, damages, liabilities and expenses, which may arise or be claimed against Tenant and be in favor of any persons, firms or corporations, for any injuries or damages to person or property, consequent upon or arising from any acts, omissions, neglect or fault of Landlord, its agents, servants, employees, licensees, visitors, customers, patrons or invitees, or consequent upon or arising from Landlord's failure to comply with any laws, statutes, ordinances, codes or regulations or any provisions of this Lease. Tenant shall not be liable to Landlord for any damages, losses or injuries to the persons or property of Landlord which may be caused by the acts, neglect, omissions or faults of any persons, firms or corporations, except when such injury, loss or damage results from gross negligence or willful misconduct of Tenant, its agents or employees. Landlord shall maintain at all times during the term of this Lease an insurance policy or policies in an amount or amounts sufficient to indemnify Tenant and to pay Tenant's damages, if any, resulting from any matter set forth in this Section.

In case Tenant shall be made a party to any third party litigation commenced by or against Landlord, Landlord shall protect and hold Tenant harmless and shall pay all cost, expenses and reasonable attorneys' fees and disbursements incurred or paid by Tenant in connection with such litigation.

		24.	ATTORNEY'S FEES: If the Tenant defaults in the performance of any of the terms, provisions, covenants and conditions of this Lease and by reason thereof the Landlord employs the services of an attorney to enforce performance of same by the Tenant or to perform any services based upon said default, the Tenant agrees to pay reasonable attorney's fees and all expenses, costs and charges incurred by the Landlord pertaining thereto and enforcement of any remedy available to the Landlord.

In the event of the institution of litigation to enforce the provisions of the Lease to evict Tenant, or to collect moneys due from the date of default in the event of a money judgment, Tenant shall be responsible for cost of such litigation and reasonable attorney's fees at the trial level and at all levels of appeal.

In the event Landlord is the prevailing party, the awardable sums with all costs, interest and damages shall be deemed additional rent hereunder and shall be due from Tenant to Landlord on the first day of the month following the month in which the respective expenses, etc., were incurred.

In the event the Tenant is the prevailing party, the awardable sums with all costs shall be bourne by Landlord.

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		25.	GOVERNMENTAL REGULATIONS: Tenant shall faithfully observe in the use of the Leased Premises all municipal and county ordinances and codes and state, local and federal statutes or laws, rules, regulations, or other governmental requirements now in force or which may hereafter be in force.

		26.	FIRE OR CASUALTY: In the event the Building shall be destroyed, or so damaged, or injured by fire or other casualty during the term of this Lease whereby the Leased Premises shall be rendered untenantable, the Landlord shall have the right to render the Leased Premises tenantable by repairs within one hundred eighty (180) days therefrom. If the Leased Premises are not or will not be rendered tenantable within said time, it shall be optional with either party hereto to cancel this Lease, and in the event of such cancellation, the rent shall be paid only to the date of such fire or casualty. Landlord shall also have the option to cancel this Lease in the event the Building is damaged to such an extent that Landlord elects not to repair the damage. Any cancellation shall be evidenced in writing. During any time that the Leased Premises are untenantable due to causes set forth in this Section, the rent or a just and fair proportion thereof (based upon the portion of the Leased Premises that are not untenantable)shall be abated.

Landlord shall not restore fixtures and improvements installed by Tenant either at the commencement of the Lease or during the leasehold term.

		27.	EMINENT DOMAIN: If there shall be taken during the term of this Lease any part of the Leased Premises, parking facilities or Building, other than a part not interfering with maintenance, operation or use of the Leased Premises, Landlord may elect to terminate this Lease or to continue same in effect. If Landlord elects to continue the Lease, the rental shall be reduced in proportion to the area of the Leased Premises so taken and Landlord shall repair any damage to the Leased Premises, parking facilities, or Building resulting from such taking. If any part of the Leased Premises is taken by condemnation or eminent domain and the Landlord elects to continue the Lease, the rental assessment shall be reduced in proportion to the area of the Leased Premises so taken and Landlord shall repair any damage to the Leased Premises resulting from such taking. All sums awarded or agreed upon between Landlord and the condemning authority for the taking of the interest of Landlord and/or Tenant, whether as damages or as compensation, and whether for partial or total condemnation, will be the property of the Landlord, except that Tenant shall be entitled to any award for Tenant's moving expenses or personal property (but in no event shall Tenant be entitled to any award for the loss of the leasehold estate). If this Lease should be terminated under any provisions of this Section, rental shall be payable up to the date that possession is taken by the taking authority, and Landlord will refund to Tenant any prepaid unaccrued rent less any sum or amount then owing by Tenant to Landlord.

		28.	ABANDONMENT: If, during the term of the Lease, Tenant shall abandon, vacate or remove from the Leased Premises the major portion of the goods, wares, equipment or furnishings usually kept on said Leased Premises, and shall cease

14

doing business in said Leased Premises, or shall suffer the rent to be in arrears, Landlord may, at its option, cancel this Lease by written notice to Tenant at Tenant's address, or Landlord may enter said Leased Premises as the agent of Tenant by force or otherwise, without being liable in any way therefore, and relet the Leased Premises with or without any furniture that may be therein as the agent of Tenant, at such price and upon such terms and for such duration of time as Landlord may determine and receive the rent and for such expenses therefore, applying the same to the payment of the sums due by Tenant, and if the full rental herein provided shall not be realized by Landlord over and above the expense to Landlord of such reletting, Tenant shall pay any deficiency provided that the Landlord has made reasonable efforts to achieve a fair lease.

		29.	BANKRUPTCY: It is agreed between the parties hereto that: if Tenant shall be adjudicated bankrupt or insolvent or take the benefit of any federal reorganization or compensation proceeding or make a general assignment or take the benefit of any insolvency law; or, if Tenant's leasehold interest under this Lease shall be sold under any execution or process of law; or if a trustee in bankruptcy or a receiver be appointed or elected or had for Tenant (whether under Federal or State Laws); or if said Premises shall be abandoned or deserted; or if Tenant shall fail to perform any of the terms, provisions, covenants or conditions of this Lease on Tenant's part to be performed; or if this Lease or the Term thereof be transferred or pass to or devolve upon any persons, firms, officers or corporations, then and in any such event this Lease and the Term of this Lease, at Landlord's option, shall expire and end five (5) days after Landlord has given Tenant written notice of such act, condition or default and Tenant hereby agrees immediately then to quit and surrender said Leased Premises to Landlord; but this shall not impair or affect Landlord's right to maintain summary proceeding for the recovery of the possession of the Leased Premises in all cases as provided for by law. If the term of this Lease shall be so terminated, Landlord may immediately or at any time thereafter, re-enter or repossess the Leased Premises and remove all persons and property therefrom without being liable for trespass or damages.

		30.	(DELETED).

		31.	WAIVER: 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 the right to declare any such default at any time and take such action as might be lawful or authorized hereunder, in law and/or in equity. No waiver by Landlord of a default by Tenant shall be effective unless contained in a written instrument signed by Landlord.

No waiver of any term, provision, condition or covenant of this Lease by Landlord shall be deemed to imply or constitute a further waiver by Landlord of any other term, provision, condition or covenant of this Lease.

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		32.	RIGHT OF ENTRY: Landlord, or any of his agents, shall have the right to enter the Leased Premises at any time for exigent circumstances and during all reasonable hours with reasonable notice, to examine the same or to make such repairs, additions or alterations as may be deemed necessary for the safety, comfort or preservation thereof, or of the Building, or to exhibit the Leased Premises at any time within one hundred eighty (180) days before the expiration of this Lease. Landlord will retain pass keys and any passcodes to gain entry to the entire Premises. Said right of entry shall also exist for the purpose of removing placards, sign fixtures, alterations or additions which do not conform to this Lease.

		33.	NOTICES: Any notice to be given shall be sent by certified mail, or hand delivered to the Parties designated address or to such other place or places as The Parties may specify in writing.

		34.	RULES AND REGULATIONS: Tenant agrees to comply with all reasonable rules and regulations Landlord may adopt from time to time of operation of the Building and parking facilities and protection and welfare of the Building and parking facilities, the tenants, visitors, and occupants of the Building. The present rules and regulations, with respect to which Tenant hereby agrees to comply, entitled "Rules and Regulations" (Exhibit A) are attached hereto and are by this reference incorporated herein. Any future rules and regulations shall become a part of this Lease and Tenant hereby agrees to comply with the same upon delivery of a copy thereof to Tenant, providing the same are reasonable and do not deprive Tenant of its rights established under this Lease.

		35.	CONTROL OF COMMON AREAS AND PARKING FACILITIES BY LANDLORD: All automobile parking areas, driveways, entrances and exits thereto, Common Areas and other facilities furnished by Landlord, including all parking areas, truck way or ways, loading areas, pedestrian walkways and ramps, landscaped areas, stairways, corridors, Common Areas and other areas and improvements provided by Landlord for the general use, in common, of tenants, their officers, agents, employees, servants, invitees, licensees, visitors, patrons, and customers, shall be at all times subject to the exclusive control and management of Landlord and Landlord shall have the right from time to time to change location and arrangement of parking areas and other facilities herein above referred to; to restrict parking by and enforce parking charges (by operation of meters or otherwise) upon visitors, patrons, and customers; to close all or any portion of said areas legally sufficient to prevent a dedication thereof or the accrual of any rights to any person or public areas, common areas or facilities; to discourage non-tenant parking; and to do and perform such other acts in and to said areas and improvements, as, in the sole judgment of Landlord, the Landlord shall determine to be advisable with a view to the convenience and use thereof by tenants, their officers, agents, employees, servants, invitees, visitors, patrons, licensees and customers. Landlord will operate and maintain the Common Areas and other facilities referred to in such reasonable manner as Landlord shall determine from time to time. Without limiting the scope of such discretion, Landlord shall have the full right and authority to designate a

16

manager of the parking facilities and/or Common Area and other facilities who shall have full authority to make and enforce rules and regulations regarding the use of the same or to employ all personnel and to make and enforce all rules and regulations pertaining to and necessary for the proper operation and maintenance of the parking areas and/or common areas and other facilities. Reference in this Section to parking areas and/or facilities shall in no way be construed as giving Tenant hereunder any rights and/or privileges in connection with such parking areas and/or facilities unless such rights and/or privileges are expressly set forth in this Lease.

		36.	SURRENDER OF LEASED PREMISES: Tenant agrees to surrender Landlord, at the end of the term of this Lease and/or upon any cancellation of this Lease, said Leased Premises in as good condition as the Leased Premises were at the beginning of the term of the Lease, ordinary wear and tear and damage by fire or other casually not caused by Tenant's negligence, excepted. Tenant agrees that if Tenant does not surrender said Leased Premises o Landlord at the end of the term of this Lease, then Tenant will pay to Landlord two (2) times the monthly rent paid in the final month of Tenant's term hereunder for each month that Tenant holds over; in addition Tenant shall pay all damages that Landlord may suffer on account of Tenant's failure to so surrender to Landlord possession of the Leased Premises, and will indemnify and save Landlord harmless from and against all claims made by any succeeding tenant of the Leased Premises so far as such delay is occasioned by failure of Tenant to so surrender the Leased Premises in accordance herewith or otherwise.

No receipt of money by Landlord from Tenant after termination of this Lease or the service of any suit or final judgment for possession shall reinstate, continue or extend the term of this Lease or affect any such notice, demand, suit or judgment.

No act or thing done by Landlord or its agents during the term hereby granted shall be deemed  an acceptance of a surrender of the Leased Premises and no agreement to accept a surrender of the Leased Premises shall be valid unless it be made in writing and subscribed by a duly authorized officer or agent of Landlord.

		37.	TAXES ON TENANT'S PERSONAL PROPERTY: Tenant shall be responsible for and pay before delinquency all municipal, county or state taxes assessed during the term of this Lease against any occupancy interest or personal property of any kind, owned by or placed in, upon or about the Leased Premises by the Tenant.

		38.	PRIOR OCCUPANCY: If Tenant, with Landlord's consent, shall occupy the Leased Premises prior to the beginning of the Lease term specified in Section 2 hereof, all provisions of this Lease shall be in full force and effect commencing upon such occupancy, and rent for such period shall be paid by Tenant at the same rate herein specified.

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		39.	SHORT FORM LEASE: Tenant shall, if so required by Landlord at any time, execute a short form Lease in recordable form setting forth the name of the parties, the term of the Lease (stating the commencement of Lease term called for in Section 2), and the description of the Leased Premises, and such other matters as Landlord shall reasonably request. In no event shall the Tenant record this Lease, any memorandum thereof or reference thereto, amongst the Public Records of any County of the State of Florida without the prior written consent of Landlord. Any violation of this provision by Tenant shall be immediate default hereunder.

		40.	WAIVER OF TRIAL BY JURY: Landlord and Tenant hereby waive trial by jury in any action, proceeding or counterclaim brought by either of the parties hereto against the other on any matter arising about, of or in any way connected with the Lease, the relationship of Landlord and Tenant or Tenant's use of or occupancy of the Premises. Tenant further agrees that it shall not interpose any counterclaim or counterclaims in a summary proceeding or in any action based upon nonpayment of rent or any other payment required of Tenant hereunder.

		41.	(DELETED)

		42.	SEVERABILITY: If any terms, provision, covenant or condition of this Lease or the application thereof to any person or circumstance shall, to any extent be invalid or unenforceable, the remainder of this Lease, or the application of such terms, provisions, covenant or condition to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby and each term, provision, covenant or condition of this Lease shall be valid and be enforceable to the fullest extent permitted by law. This Lease shall be construed in accordance with the laws of the State of Florida.

		43.	TIME: It is understood and agreed between the parties hereto that time is of the essence of all the terms, provisions, and covenants and conditions of the Lease.

		44.	DEFINITIONS.

		(A)	The terms Landlord and Tenant, as herein contained, shall include singular and/or plural, masculine, feminine, and/or neuter, heirs, successors, executors, administrators, personal representatives and/or assigns wherever the context so requires or admits. The terms provisions, covenants and conditions of this Lease are expressed in the total language of this Lease Agreement and the Section headings are solely for the convenience of the reader and are not intended to be all inclusive.

		(B)	Calendar Year shall be a twelve month period ending on each December 31.

		(C)	Base Year is the Calendar Year in which the Lease Commencement Date occurs.

		(D)	Base Month is the month in which the lease commences.

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		(E)	The Consumer Price Index is the United States Bureau of Labor Statistics, "Revised Consumer Price Index, for Urban Wage Earners and Clerical Workers, All terms (1967=100)" or any successor thereto published by the United States Department of Labor, Bureau of Labor Statistics; provided, that should the said Consumer Price Index or the manner of computing or reporting same be discontinued or changed, the parties shall attempt to agree upon a substitute formula, and failing such agreement the matter shall be determined by arbitration in Jupiter under the Rules of the American Arbitration Association then prevailing.

		(F)	Code shall mean the City of Jupiter (County, State, or Federal) building, Electrical, Air Conditioning, Plumbing or other, as the same may be applicable.

		(G)	Building means the actual structure wherein the Leased Premises are located.

		(H)	Pro ration of rent shall be over a thirty (30) day month.

		45.	TENDER AND DELIVERY OF LEASE INSTRUMENT: Submission of this instrument for examination does not constitute an offer, right of first refusal, reservation of or option for the Leased Premises or any other space or premises in, on or about the Building. This instrument becomes effective as a Lease upon execution and delivery by both Landlord and Tenant.

		46.	SERVICES: Services to be provided to Tenant shall be common area janitorial service (weekday nights), automatic elevator service, public stairs, water at points of supply for general use by Tenant throughout the year, electricity, heat and air conditioning as noted herein to be operated Monday through Friday 7:00 a.m. to 8:00 p.m. and 8:00 a.m. to 1:00 p.m. Saturdays, excluding legal holidays.

		47.	JANITORIAL SERVICES: Tenant shall be responsible for contracting with and payment of janitorial services within their Leased Premises to a quality standard commensurate with other similar quality buildings in the area. (See Section 7.) Landlord will make available to Tenant a suitable janitorial service.

		48.	WRITTEN AGREEMENT: This Lease contains the entire agreement between the parties hereto and all previous negotiations leading thereto, and it may be modified only by an agreement in writing signed by Landlord and Tenant. No surrender of the Leased Premises or of the remainder of the terms of the Lease shall be valid unless accepted by Landlord in writing. Tenant acknowledges and agrees that Tenant has not relied upon any statement, representation, prior written or prior contemporaneous oral promises, agreements or warranties except such as are expressed herein.

		49.	RIGHT TO SELL CONDOMINIUM UNITS: Landlord reserves the right to cause the building and surrounding property, including the leasehold premises, to be converted to a condominium to be created by the Landlord as may be reasonably necessary regarding the creation of the condominium and agrees to execute any and all documents which may be required to create said condominium, provided that such action required by the Tenant shall be at no cost to the Tenant. This action shall not intefere with Tenants Leasehold rights.

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		50.	LIMITATIONS OF LANDLORD’S PERSONAL LIABILITY. Tenant specifically agrees to look solely to Landlord's interest in the Building for the recovery of any judgment from Landlord, it being agreed that Landlord (and any partners of Landlord and any trustees, officers, shareholders or employees of Landlord) shall never be personally liable for any such judgment. The provisions contained in the foregoing sentence are not intended to, and shall not, limit any right that Tenant might otherwise have to obtain injunctive relief against Landlord or Landlord's successors in interest, or any other action not involving the personal liability of Landlord's to respond in monetary damages from assets other than Landlord's interest in the Building of any suit or action in connection with enforcement or collection of amounts which may become owing or payable under or on account of insurance maintained by Landlord.

		51.	SMOKING. This is a non-smoking building. Tenant and its employees shall smoke outside the building. Under no circumstances shall Tenant allow its employees to smoke in the suite, hallways, stairwells, entry way, or elevators of the Building. Tenant and its employees shall not leave remnants or partially smoked items on the grounds except in receptacles specifically designed for the purpose.

		52.	BROKERAGE. All parties agree that there are no brokers involved in this transaction.

		53.	Authority. The undersigned represent and warrant that they are duly authorized to enter this contract.

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IN WITNESS WHEREOF, the parties hereto have signed and delivered this Lease in duplicate at Palm Beach County, Florida, on the date written below.

	
LANDLORD:

	
 

	
TENANT

	
 

	
 

	
 

	
QUENTIN PARTNERS CO.

	
 

	
DYADIC INTERNATIONAL, INC.

	
As Agent For:

	
 

	
 

	
Intracoastal Pointe, Inc.

	
 

	
 

	
 

	
 

	
 

	
/s/ James Q. Riordan, Jr

	
 

	
/s/ Mark Emalfarb

	
By: James Q. Riordan, Jr

	
 

	
Mark Emalfarb

	
President

	
 

	
President

	
WITNESS:

	
 

	
WITNESS:

	
 

	
 

	
 

	
/s/ Sharon L. Wood

	
 

	
/s/ Michael I. Faby

	
Sharon L. Wood

	
 

	
Michael I. Faby

	
 

	
 

	
(printed name of Witness)

	
 

	
 

	
 

	
1/5/2011

	
 

	
28 December 2010

	
Date

	
 

	
Date

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EXHIBIT  A

RULES AND REGULATIONS

		1.	Landlord reserves the right to refuse access to any persons Landlord in good faith judges to be a threat to the safety, reputation, or property of the Office Building Project and its occupants.

		2.	Tenant shall not suffer or permit the obstruction of any Common Areas, including driveways, walkways, stairways, and doorways of the Building. These shall not be obstructed or used for any purpose other than ingress to and egress from the units. No furniture, equipment, or other personal articles shall be placed in the entrances, stairways or other common elements.

		3.	No exterior of any premises or the windows or doors thereof or any other portions of the common elements shall be painted or decorated in any manner by any Tenant. No sign, notice, lettering, or advertising shall be inscribed or exposed on or at any window, door, or at any other part of the Building; nor shall anything be projected out of any window of the building. Tenant shall not be allowed to put their names on any entry to the building or entrance to any unit, except In the proper place provided by the Landlord for such purpose. No protective window film, shades, awnings, window guards, ventilators, fans or air-conditioning devices shall be used in or about the Building or common elements except such as shall have been approved in writing by Landlord.

		4.	No Tenant shall make or permit any noise or objectionable odor that will disturb or annoy the occupants of any of the premises in the Building or do or perm it anything to be done therein which will interfere with the rights, comfort, or convenience of other Tenants.

		5.	Each Tenant shall keep his unit in a good state of preservation and cleanliness and shall not sweep or throw or permit to be swept or thrown therefrom, or from the doors or windows thereof, any dirt or other substances. All garbage and refuse from the Building shall be deposited with care In receptacles intended for such purpose only at such times and in such manner as Landlord may direct. Disposal for all garbage that is not in the course of normal day to day operations -- i.e. shipping boxes for computers printers, filing cabinets, and other large Items -- must be handled by tenant at tenant's cost.

		6.	Water closets and other water apparatus in the Building shall not be used for any purpose other than those for which they were constructed nor shall any sweepings, rubbish, rags, paper, ashes, or any other article be thrown into the same. Any damage resulting from misuse of any water closet or other apparatus shall be paid for by the Tenant causing such damage.

		7.	The agents of the Landlord and any contractor or workman authorized by the Landlord may enter any unit at any reasonable hour of the day for any purpose permitted under the terms of the Lease or Building Rules. No Tenant shall engage any employee of the Landlord for any private business of the Tenant without prior consent of the Landlord. Tenant shall not employ any service or contractor for services or work to be performed in the Building, except as approved by Landlord.

		8.	No bird or animal shall be kept or harbored In the Building unless the same in each instance be expressly permitted in writing by the Landlord. In no event shall dogs be permitted in any of the public portions of the buildings or development unless carried or on a leash. The Tenant shall Indemnify the Landlord and hold It harmless against any loss or liability of any kind or character whatsoever arising from or as a result of having any animal in the building.

		9.	No radio or television aerial shall be attached to or hung from the  exterior of the  building without written approval by the Landlord.

		10.	The Landlord shall retain a passkey to each unit. No Tenant shall alter any lock on any door leading into his unit without prior consent of the Landlord. Tenant shall not alter any lock or Install new or additional locks or bolts to the common areas of the property.

 

		11.	No Tenant, or any employee or any client, visitor, or guest of a Tenant shall be allowed on the roof of the building without the express permission of the Landlord.

		12.	All damage to the building or common elements caused by the moving or carrying of any article therein shall be paid by the Tenant responsible for the presence of such article.

		13.	No Tenant shall interfere In any manner with any portion of the electrical system and lighting apparatus which are part of the common elements and not part of the Tenant's.

		14.	No Tenant shall use or permit to be brought into the building any flammable oils or fluids such as gasoline, kerosene, naptha, benzine or other explosives or any hazardous materials or articles deemed hazardous to life, limb or property.

		15.	The Tenant must keep the Interiors of the leased premises clean and free from obstructions. The Landlord assumes no liability for loss or damage to articles stored or placed In the building.

		16.	Tenant shall be held responsible for the actions of Its employees, visitors, clients, or guests. Any damage to the building or equipment caused by Tenant, its employees, guests, visitors, or clients shall be repaired at the expense of the Tenant.

		17.	Complaints regarding the management of the building and grounds or regarding the actions of other Tenants shall be made in writing to the Landlord.

		18.	Parking of motor vehicles, including motorcycles, mopeds, trailers, or bicycles by Tenant, its employees, guests, clients, or visitors shall be only in the space designated as parking; no unattended vehicle shall at any time by left in such a manner as to impede the passage of traffic or to Impair proper access to parking areas. No repair, cleaning, or maintenance of motor vehicles, Including motorcycles, mopeds, trailers, or bicycles shall occur on the property, with exception of emergency repair to have vehicle removed to a qualified repair facility. No storage of motor vehicles, including motorcycles, mopeds, trailers, bicycles or any objects shall be permitted on the driveway and parking areas and the same shall at all times be kept free of unreasonable accumulation of debris or rubbish of any kind.

		19.	Supplies, goods, and packages of every kind are to be delivered in such a manner as the Landlord or Its agents may prescribe and the Landlord Is not responsible for the loss or damage of any such property.

		20.	No unit shall be used or occupied in such manner as to obstruct or interfere with the enjoyment of other occupants, or other residents of adjoining units, nor shall any nuisance or immoral or illegal activity be committed or permitted to occur In or about any unit or upon any part of the common element of the property.

		21.	The common elements are intended for use for the purpose of affording vehicular and pedestrian movement within the property and of providing access to the units. No part of the common elements shall be obstructed so as to Interfere with Its use for the purposes herein above recited nor shall any part of the common elements be used for general storage purposes, nor anything done thereon in any manner which shall increase the rate of hazard and liability insurance covering said area and Improvements situated thereon.

		22.	Tenant shall be responsible for the inappropriate use of any toilet rooms, plumbing or other utilities. No foreign substances of any kind are to be inserted therein.

		23.	Tenant shall not deface the walls, partitions or other surfaces of the premises or Office Building Project.

		24.	Furniture, significant freight and equipment shall be moved Into or out of the building only with the Landlord's knowledge and consent, and subject to such reasonable limitations, techniques and timing, as may be designated by Landlord. Tenant shall be responsible for any damage to the Office Building Project arising from any such activity. Tenant may be asked to provide a deposit against possible damage resulting from movements of the aforementioned.

 

		25.	Landlord reserves the right to close and lock the Building on Saturdays, Sundays and legal holidays, and on other days between the hours of 6:00 P.M. and 6:00 A.M. of the following day. If Tenant uses the Premises during such periods, Tenant shall be responsible for securely locking any doors it may have opened for entry.

		26.	Tenant shall return all keys at the termination of its tenancy and shall be responsible for the cost of replacing any keys that are lost.

		27.	No Tenant, employee or invitee shall go up on the roof of the Building.

		28.	Tenant shall not suffer or permit smoking or carrying of lighted cigars or cigarettes in areas reasonably designated by Landlord or by applicable governmental agencies as non-smoking areas.

		29.	Tenant shall not use any method of heating or air conditioning other than as provided by Landlord.

		30.	Tenant shall not install, maintain or operate any vending machines upon the Premises without Landlord's written consent.

		31.	The Premises shall not be used for loading or manufacturing, cooking or food preparation.

		32.	Tenant shall comply with all safety, fire protection and evacuation regulations established by Landlord or any applicable governmental agency.

		33.	Tenant assumes all risks from theft or vandalism and agrees to keep its Premises locked as may be required.

		34.	Landlord reserves the right to waive any one of these rules or regulations, and/or as to any particular Tenant, and any such waiver shall not constitute a waiver of any other rule or regulation or any subsequent application thereof to such Tenant.

		35.	Landlord reserves the right to make such other reasonable rules and regulations as it may from time to time deem necessary for the appropriate operation and safety of the Building Project and its occupants. Tenant agrees to abide by these rules and regulations. These Building Rules may be added to or repealed at any time by the Landlord.

INTRACOASTAL POINTE OFFICE BUILDING 

AMENDMENT TO OFFICE LEASE

 

This Amendment to Office Lease Agreement made and entered into this 30th day of December, 2013 by and between Quentin Partners Co. as Agent for Intracoastal Pointe, Inc. (both Florida corporations), as "Landlord;" and Dyadic International, Inc., as "Tenant."

 

WITNESSETH:

 

WHEREAS, Landlord and Tenant entered into that Office Lease dated December 30, 2010, relative to the Leased Premises set forth therein. Premises currently consist of Suite 404 and 405 (4,872 ± s.f.); and

 

WHEREAS, Landlord and Tenant now desire to extend the term of the lease by twenty-four months.

 

TERM: Term will begin on January 1, 2014 and end on December 31, 2015 (unless otherwise terminated as provided in the Lease).

 

TOTAL RENT:

1/01/14-12/31/14: $11.50 per square foot; $56,028.00 / year; $4,669.00 / month* 

1/01/15-12/31/15: $12.00 per square foot; $58,464.00 I year; $4,872.00 / month* *

AII rates plus CAM (which shall be $8.00 psf for the first year and subsequently may be changed based on building expenses, but will never be less than $8.00 psf) plus sales tax (currently at 6.0%).

 

PREMISES:Landlord will deliver premises in an "as is" condition.

 

Except as set forth herein, all other terms, conditions, provisions and requirements of the Lease remain unchanged and in full force and effect.

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed on the day and year first above written.

 

	LANDLORD:	
 

	TENANT:
	
QUENTIN PARTNERS CO.

	
 

	
Personally:

	As Agentfor: Intracoastal Pointe Inc.	
 

	
 

	 		/s/ Michael J. Faloy, CFO
	
/s/ James Q. Riordan, Jr., 

	
 

	
By: Michael J. Faloy, CFO

	By: James Q. Riordan, Jr., President	
 

	
 

	 		
For: DYADIC INTERNATIONAL, INC.

	 		
	 		/s/ Tom O' Shaughnessy, VP
	 		By: Tom O' Shaughnessy, VP
	WITNESS:		WITNESS:
	 		
	   		   
	
Sharon Wood

		

Copy of Original Lease

 

	

 

 

INTRACOASTAL POINTE OFFICE BUILDING

 

LEASE AGREEMENT

 

TENANT:

 

DYADIC INTERNATIONAL, INC.

 

LANDLORD

 

QUENTIN PARTNERS CO.

as Agent for

Intracoastal Pointe, Inc.

851 S.E. Johnson Avenue, Suite 100

Stuart, Florida 34994

772-220-4127

 

December, 2010

 

 

Lease 2011, 8 FINAL.wpd

 

 

INTRACOASTAL POINTE OFFICE BUILDING 

LEASE AGREEMENT

 

THIS LEASE AGREEMENT (sometimes hereinafter referred to as the "Lease") is made and entered into this 30th day of December, 2010 by and between Quentin Partners Co. as Agent for Intracoastal Pointe, Inc., (Florida corporations) (hereinafter collectively called "Landlord"), whose address for purposes hereof is 851 S.E. Johnson Avenue, Suite 100, Stuart, Florida 34994; and Dyadic International, Inc., (hereinafter called "Tenant"). Tenant's address, for purposes hereof until commencement of the term of this Lease, being 140 Intracoastal Pointe Drive, Suite 404, Jupiter, Florida 33477 and thereafter being that of the Leased Premises (hereinafter defined).

 

WITNESSETH

 

	
1.

	
LEASED PREMISES: Subject to and upon the terms, provisions, convenants and conditions hereinafter set forth, and each in consideration of the duties, covenants and obligations of the other hereunder, Landlord does hereby lease, demise and let to Tenant and Tenant does hereby lease, demise and let from Landlord those certain premises (hereinafter sometimes called the "Leased Premises") in the Intracoastal Pointe Office Building (hereinafter sometimes referred to as "Building") located at 140 Intracoastal Pointe Drive, Jupiter, Florida 33477, such Leased Premises being more particularly described as follows:

 

Suites 404 and 405, 4,872+ sqaure feet of Gross Rentable Area, located on the fourth floor of the Building.

 

The term "Gross Rentable Area"  as used herein, shall refer to all area measured from the outside surface of the outer glass or finished walls of the building to the outside surface of the opposite outer wall,  glass, or in the case of multi-tenant floors, to the midpoint of the wall Separating the Leased Premises of adjacent tenants. The term "Gross Rentable Area" includes a pro rata share of all common areas and facilities of the Building, but not limited to, bathrooms, hallways and service facilities, the rent and expenses of which are to be shared by Tenant proportionately. No deductions from Gross Rentable Area are made for columns or projections necessary to the Building. The Gross Rentable Area in the Leased has been calculated on the basis of the foregoing definition and is hereby stipualted for all purposes hereof to be 4,872± square feet, whether the same should be more or less as a result of minor variations resulting from actual construction and completion of the Leased Premises for occupancy so long as such work is substantially in accordance with the approved plans.

 

	
2.

	A.	
TERM: lf The term of this Lease Agreement on the Leased Premises shall be for a period of (36) thirty-six months. The Commencement Date of the term shall be January 1, 2011. Landlord will make all diligent attempts to have space ready. The rent for partial months shall be prorated. The Term of the

1

Lease shall expire (unless sooner terminated as provided herein) at 11:59 p.m. E.D.T. on December 31, 2013.

 

		B.	
Early Termination:

 

Tenant shall have the right to terminate the Lease with a six (6) month notice at any time on or after January 1, 2012 by delivering written notice ("Early Termination Notice") to Landlord its intention to do so.

 

	
3.

	A.	
Annual Rent: During the term of this Lease, Tenant agrees and covenants to pay the Landlord Annual Rent as follows:

 

1/01/11 -12/31/13: $11.50 per square foot; $56,028.00/year; $4,669.00/month*

*Tenant will pay first month's rent plus CAM as defined in the lease (Section 3C, currently at $8.00 psf) and sales tax (currently at 6.5%) totaling $8,431.61, upon lease execution.

 

Total Annual Rent per year is payable without demand, notice or offset in advance in equal monthly installments of one -twelfth of the Annual Rent due and payable on the first day of each and every calendar month of the term of the Lease, in the currency of the United States of America at the offices of Landlord or elsewhere as designated from time to time by Landlord's written notice to Tenant. The monthly installment of Annual rent shall be prorated in the case of partial months. In addition to the Annual Rent Tenant shall pay to the Landlord on the first day of each month a sum equation to any sales tax, tax on  rentals, and any other charges, taxes or impositions, now in existence or hereafter imposed based upon the privilege of renting the Leased Premises or upon the amount of Annual Rent, pro rata expenses, and all other amounts owed by Tenant hereunder. Nothing herein shall, however, require Tenant to pay any Federal or State taxes on income imposed upon Landlord.

 

The Tenant will pay for the electric for the Leased Premises, which shall be separately metered. The Tenant will be responsible to maintain Its Leased Premises space (including all water connections, appliances and kitchens).

 

LATE CHARGE, The parties agree that late payment by Tenant to Landlord of rent will cause Landlord to incur costs not contemplated by this lease, the amount  of which is extremely difficult to ascertain. Therefore, the parties agree that if any installment of rent is not received by Landlord within 7 days after rent is due, Tenant will pay to Land lord a sum equal to 15% of monthly rent as a late charge. 

 

INSUFFICIENT FUNDS, if any of Tenant's checks bounce, Landlord will charge a fee of $100.00 for administrative cost plus all bank fees.

 

		B.	
PRORATA SHARE OF EXPENSES AS ADDITIONAL RENT: In addition to the Annual Rent and other sums to be paid hereunder by Tenant, Tenant

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shall pay a prorata share of all expenses incurred by Landlord in connection with the ownership, operation, maintenance and management of the Building and the land upon which it is located. Tenant's pro-rata share shall be $8.00 per square foot.

 

The expenses for which the Tenant shall pay a prorata share according to the aforesaid formula include but are not limited to the following:

 

		(1)	
Real Property Taxes and Assessments. Tenants shall pay its pro-rata share of all real property taxes and assessments and all tangible personal property taxes which may be levied or assessed by any lawful authority against the land, the improvements located on the land (including the Building) and all personal property owned by Landlord and used in connection with the operation and management thereof.  A Tax bill or photocopy thereof submitted by Landlord to Tenant shall be sufficient evidence of the amount of taxes assessed or levied against the property to which the bill relates. The real property taxes and assessments herein referred to shall be the real property taxes and assessments on the property with a physical address of 140 Intracoastal Pointe Drive, Jupiter, Florida 33477. Tenant shall be responsible for paying all taxes on Tenant's own personal property and all taxes due with respect to any leasehold improvements which exceed the value of the improvements provided by Landlord to Tenant.

 

		(2)	
Insurance. Tenant shall pay its prorata share of the cost of all insurance coverage carried by Landlord with respect to the Building and land, including without limit insurance against liability, casualty, loss of damage to the Building, rent loss, flood insurance, and worker's compensation.

 

		(3)	
Utilities. Tenant shall pay its prorata share of the cost of all utilities including electricity, water, gas, fuel, trash and garbage collection fees, Tenant Association fees, drainage district tax, and any sewer service charges for the Building (but as provided in Section 10, Tenant shall be responsible for paying all electricity to the Leased Premises).

 

		(4)	General Services and Expenses (for the Building Common Areas):

 

	 	
(a)

	
Janitorial services.

	 	
(b)

	
Maintenance and repair.

	 	
(c)

	
Landscaping maintenance, supplies and refurbishing.

	 	
(d)

	
Cleaning, maintaining, resurfacing, and striping of the parking area.

	 	
(e)

	
Operatorless elevator service and maintenance.

	 	
(f)

	
Supplies for restrooms and other public portions of the Building and the property.

	 	
(g)

	
Maintenance of air conditioning, heating, sprinkler, access control and other mechanical systems.

	 	
(h)

	
Building management fees.

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(i)

	
Expenses for access control if and to the extent provided by Landlord. In the event Landlord does provide access control, Tenant specifically agrees that Landlord shall not be liable in the event of any loss or damage suffered by Tenant as a result of any failure to exclude access to any unauthorized personnel.

	 	
(j)

	
Reserve for renewal, replacement, and capital improvements of ten percent of annual expenses excluding the reserve for renewal and replacement.

	 	
(k)

	
Amortization of the cost of capital improvements (together with a reasonable finance charge) as may be required by government authority.

	 	
(l)

	
Professional fees (including attorneys and accountants) incurred in connection with the operation of the Building; and

	 	
(m)

	
Compensation of employees at the level of manager and below in connection with operation of the Building.

 

The costs to be shared on a prorata basis by Tenant shall not include payments of principal and interest on any mortgage or deed of trust upon the building, or the costs of improvements made for particular tenants.

 

Landlord does not warrant that any of  the services be free from interruption caused by repairs, renewal, improvement, alterations, strikes, lockouts, accidents, inability of Landlord  to obtain feel or supplies or any other causes. Any such interruption of service shall never be deemed an eviction or disturbance of Tenant's use and possession of the premises or any part thereof or render the Landlord liable to the Tenant for damages or relieve the Tenant from performance of the Tenant's obligations under this lease. Landed agrees, however, that Landlord will make reasonable efforts at all times to promptly remedy any situation which might interrupt such services.

 

		C.	
OTHER PROVISIONS AFFECTING RENTAL PAYMENTS AND ADDITIONAL RENT: Notwithstanding anything in the foregoing to the the contrary, the Tenant's obligations under Section 3(B) shall be computed as the costs of owing, operating and managing the Building is $8.00* per square foot (base CAM rate). The prorata share shall be $8.00 p.s.f. over the term of the Lease. Tenant shall pay in advance, in monthly installments as herein set forth. The amount due under this Section shall be paid by Tenant to Landlord without notice or demand and without notice or demand and without abatement, deduction or set-off in monthly installments, in advance on the first day of each calendar month during the term of this Lease as provided for herein. Landlord shall have all the rights and remedies provided herein or by law for the purposes of collection thereof. Tenant may not disclose any information Building expenses without the approval of Landlord.

 

	
4.

	
SECURITY DEPOSIT: Tenant concurrently with the execution of this Lease shall pay sum of zero dollars, it is understood that Tenant paid a previous Landlord

4

a security deposit of four thousand four hundred twenty-three dollars and 84 cents ($4,423.84), which was never transferred to the current Landlord because the previous Landlord went out of business. Tenant's lease signed June 28, 2001 stated that Quentin Partners Co. would assume responsibility for this security deposit of $4,423.84 provided Tenant remained in good standing through December 31, 2005, which was the case. As a courtesy for tenant goodwill, this sum shall be deemed by Landlord as security for the payment by Tenant of the rents and all other payments herein agreed to be paid by Tenant and for the faithful performance by Tenant of the terms, provisions, and conditions of this Lease. Landlord's option, may at the time of any default by Tenant under any of terms, provisions, covenants or conditions of this Lease apply said sum or any part thereof towards the payment of the rents and all other sums payable by Tenant under this Lease. Landlord will notify the Tenant in writing when this action has been taken. Tenant shall remain liable for any amounts that such sum shall be sufficient to pay and shall within three (3) days after demandby Landlord restore the security deposit to the amount originally required hereby. Landlord may exhaust any or all rights and remedies against Tenant before resorting for the security deposit, but nothing herein contained shall require or be deemed to require Landlord to do so. In the event the deposit shall not be utilized for any such purpose, then such deposit shall be returned by Landlord to Tenant after the expiration of the term of this Lease. Landlord shall not be required to pay Tenant any interest on the security deposit.

 

	
5.

	
USE: The Tenant will use and occupy the Lease Premises for the following use or purpose and for no other use or purpose office.

 

Notwithstanding anything to the contrary in this Lease, the Leased Premises shall not be used for any purpose which would (i) adversely affect the appearance of the Building, (ii) except for general office use, be visible from the exterior of, or the public areas of the Building, (iii) adversely affect ventilation in other areas of the Building (including without limitation the creation of offensive odors), (iv) create unreasonable elevator loads, (v) cause structural loads to be exceeded, (vi) create unreasonable noise level, (vii) violate building codes, zoning ordinances, or other applicable laws or otherwise constitute illegal use, (viii) adversely affect the mechanical, electrical, plumbing or other base Building systems, (ix) result in the generation, treatment storage, discharge, disposal, possession, processing or other handing of chemicals or any hazardous material in the Leased Premises, the Building, or any Building systems, including in particular disposal in the base Building plumbing, heating, ventilating or air-conditioning systems, (x) involve printing, photographic processing or other process involving the use of chemicals and equipment not generally used in office buildings, or (xi) otherwise unreasonably interfere with Building operations or other tenants of the Building, (xii) Tenant is responsible for any and all damage throughout the building which might result from its shipping and/or receiving operations. In all events, Tenant shall not engage in any activity which is not in keeping with the standards of the Building.

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6.

	
IMPROVEMENTS: Tenant may create two offices from a conference room and hallway in the southwest corner of Suite 405 (see plan). Tenant shall maintain all improvements installed in accordance with said plans. The final plans for Tenant's interior improvements ("Tenant improvements") shall be submitted to Landlord and shall be subject to approval by Landlord and the Town Jupiter prior to commencement of construction. Landlord's approval shall not be  unreasonably. withheld provided that such improvements do not adversely affect building structure or Building systems and are not visible from the exterior of the Leased premises. The plans submitted by Tenant shall not be deemed final unless they are sufficient to meet all requirements necessary to allow Landlord to obtain a building permit. After the plans have been submitted to and approved by Landlord no changes shall be permitted without Landlord's written consent. 

 

Should Tenant desire water and sewer service within the Leased Premises other than those existing, said installation and installation and connection shall be at the Tenant's sole expense. Tenant shall be responsibi for damages, if any, to the Building or to the Leased Premises, as a result of the original installation, leaks water pipe breakage or other failure in the system which may occur after the orginal installation.

 

All Tenant improvements made to the Leased Premises shall become the propert of the Landlord upon expiration or termination of this Lease.

 

	
7.

	
CONTRACTORS, All outside contractors will be licensed, insured for liability and carry an occupational license valid in the municipality in which they are going to work. Landlord must be notified of the names of these contractors and provided with a copy of their licenses and insurance. (see Section 14-Liens.)

 

	
8.

	
TENANT'S RIGHTS AND RESTRICTIONS AS TO BUSINESS SIGNS: Tenant may, at its own expense or place, of a Quality, size, and in a manner approved in writing by Landlordd, and based on Landord's building standard, graphics identifying Tenant on the main entrance door of the Leased Premises or as otherwise designated by Landlord. Such signs shall be kept in a good state of repair and Tenant shall repair any damage that may have been done to the Leased Premises by the erection, existence or removal of such signs. At the end of the Lease term, Tenant shall remove the signs at its expense.

 

Except as provided above, no sign, notice or other advertisement shall be inscribed, painted, addixed or displayed on any of the windows or on the exterior of any of the doors of the Leased Premises, nor anywhere visible from outside the Leased Premises without prior written consent of Landlord (which may be granted or withheld by Landlord in its sole discretion).

 

Landlord agrees that during the entire term of this Lease Landlord shall make space available on the building directory board of the building for the name of Tenant's firm, company, corporation or business entity. Landlord shall maintain the Tenant's name on the sign, unless a frderal, state or local code prohibits either the sign or 

6

limits use of such dign. Landlord has the right to approve signage prior to installation.

 

	
9.

	
CONDITION OF PREMISED: T ennant is in possession of the Leased Premises and Tenant acknowledges the Leased Premises are in good and satisfactory condition.

 

	
10.

	
QUIET POSSESSION: Upon payment by Tenant of the rental herein provide, and upon the observance and performance of all terms, provisions, covenants and conditions on Tenant's part to be observed and performed, Tenant shall, subject to all of the term, provisions, covenants and comditions of this Lease Agreement, peaceably and quietly hold and enjoy the Leased premises for the term hereby leased.

 

	
11.

	
TENANT'S ELECTRICAL: Tenant shall use only office machines and equipment that operate on the Building's standard electric circuits, but which  in no event overload the Building's standard electric current or which will, in the opinion landlord interfere with the reasonable use of the Building by Landlord or other tenant shall comply with all governmental mandates regarding temperature control. Tenant shall be responsible for payment of all charges for electric consumption within the Leased Premises.

 

	
12.

	CHARGES FOR SERVICE: Any charges against Tenant by landlord or its subsidiaries or agents for services or for work done on the Leased Premises by order of Tenant, or otherwise accruing under this Lease, shall be considered as rent due hereunder for all purposes.

 

	
13.

	REMEDIES UPON TENTANT'S DEFAULTS: In the event Tenant shall abandon or vacate the Leased Premises or at any time be in default in the payment when due of Annual Base Rent, or other charges herein required to be paid by Tenant or in the observance or performance of any of the other covenants and agreements the observnace or performance of any of the other covenants and agreements required to be performed and observed by Tenant bereunder and any such defaultshall contunre for a period of three (3) days after written notice to Tenant for all otherobligations, then Tenant shall be in default hereunder nad Landlord shall be entitled to any and all remedies availabel at law or in equity and all other remedies specifically provided herein, Without limiting the generality of the foregoing, Landlord may:

 

	 	(A)	
Terminate this Lease and Tenant's right to possession of the Leased Premises by any lawful means, in which case this Lease shall terminate and Tenant shall immediately surrender possession of the Leased Premises to Landlord. In such event Landlord shall be entitled to recover from Tenant all damages incurred by Landlord by reason of Tenants default including, but not limited to, the cost of recovering possession of the Leased Premises, expenses of reletting, reasonable attorney's fees, and any real estate

7

commission Paid: and the difference at the time of termination between the amount by which the unpaid Annual Base Rent (as is reasonably projected by Landlord) for the balance of the term.

 

		(B)	Maintain this Lease in full force and effect and allow Tenant to retain possession of the Leased Premises, in which case this Lease shall continue in effect whether or not Tenant shall have abandoned the Leased Premises in such event, Landlord shall be entitled to enforce all of Landlord's rights and remedies under this Lease, including the right to recover the Annual Base Rent and other Charges as they become due hereunder, and/or

 

		(C)	
Terminate Tenant's right of possession, but not this Lease, whereupon Landlord will use commercially reasonable efforts to attempt to relet the Leased Premises for Tenant's account: ub wgucg case Tenant shall remain liable to Landlord for the amount, if any, by which the rental and other charges required to paid hereunder exceed the net amount actually received by Landlord from any such reletting (after deducting from the rental received from the new tenant any amounts paid by Landlord in obtaining the new lease including all real estate commissions, concessions, and other costs). Such amounts owed by Tenant shall be paid to Landlord from time to time upon demand: and/or

 

		(D)	
Declare the  balance of the Annual Rent and the balance of Tenant's  pro rata share of ecpenses (agreed at $8.00psi) the entire remaining term of this Lease to be immediately due and payable the space would then continue to be available Tenant; and/or

 

		(E)	
Charge of fifteen percent (15%) fee  on any outstanding balance; and/or

 

		(F)	
Pursue any other remedy now or hereafter available to Landlord at law or equity.

 

During any period in which Tenant is in default beyond any applicable grace period Tenant  shall not be entitled to exercise any options, privileges, or rights contained in this Lease.

	
14.

	
ALTERATIONS AND REPAIRS :  Tenant will, at Tenant's own expense, keep the Leased Premises in good repair and tenantable condition during the Lease term and will replace at its own expense any and all broken glass caused by Tenant in and about said Leased Premises.

Tenant will make no alteration, additions or improvements in or to the Leased Premises without the written consent of Landlord, and all additions, fixtures, carpet or improvements, except office furniture and trade fixtures which shall be readily

8

removable without injury to the Leased Premises, shall be and remain a part of the Leased Premises at the expiration of this Lease: provided, however, if Landlord  requests removal of any alterations, additions or fixtures installed by Tenant, Tenant shall cause them to be removed at Tenant's cost.

	
(15)

	
LIENS: Tenant agrees to pay all liens of contractors, sub contractors, mechanics,  laborers, material men, and other items of like costs and other items of like costs and charges, including bond premiums for release of liens and attorney's fees reasonably incurred in and about the defense of any suit in discharging the Leased Premises or  any liens, judgments or encumbrances caused or suffered by Tenant in the event any  such lien shall be made or filed, Tenant shall bond against or discharge the same within ten (10) days after the same has been made or filed. The expenses, costs and charges above referred to shall be considered as rent due for all purposes of this Lease.

Tenant shall not have any authority to create any liens for labor or materials on the Landlord's interest in the Leased Premises or the Building and all persons contracting with the Tenant  for the destruction or removal of any facilities or other improvements or for the erection, installation, alteration or repair of any facilities or other improvements on or about the Leased Premises, and all material men, contractors, mechanics and laborers, are hereby charged with notice tha they must look only to the Tenant's interest In the Leased Premises to secure the payment of any bill for work done or material furnished at the request or instruction of Tenant.

	
(16)

	
PARKING:  Landlord grants to Tenant the right to use in common with other tenants entitled to similar use of the parking areas for parking automobiles of Tenant's customers, clients and invitees.

Landlord may require Tenant and its  employees to use a parking area designated by Landlord  as an employee parrking area and Tenant shall take all necessary action to assure that Tenant's employees shall use the designated employee parking area as designated by Landlord.

Any reserved parking spaces shall be in areas designated by Landlord. Landlord shall  not be liable for any damage of any nature whatsoever to, or any theft of, automobiles or other vehicles or appurtenant parking areas. Tenant has three reserved parking spaces, numbered 6, 7, 8.

ESTOPPEL CERTIFICATE : Tenant agrees that from time to time, upon not less than Seven (7)days prior request by Landlord, Tenant will deliver to Landlord a statement writing certifying: (a) that this Lease is unmodified and in full force and effect or if  there have been modifications, that the Lease, as modified, is in full force and effect and stating the modifications; (b) the dates to which the rent and

9

other charges have been paid; (c) that Landlord Is not in default under any provisions of this Lease, or if in default, the nature thereof in detail; and (d) such  other matters as Landlord shall reasonably request.

 

	18.	LANDLORD’S MORTGAGE: If the Building and/or Leased Premises are at any time subject to a mortgage, and Tenant has received written notice from Mortgagee of same, then in any instance in which Tenant gives notice to Landlord alleging default by landlord hereunder, Tenant will also simultaneously give a copy of such notice to Landlord’s Mortgagee and Landlord’s Mortgagee shall have the right (but not the obligation) to cure or remedy such default during the period that is permitted to landlord hereunder, plus an additional period of thirty (30) days or such greater period as may reasonably be required for the Mortgagee to effect the cure (including if title or possession by the Mortgagee is required to effect the cure any period required by Mortgagee to foreclose or otherwise obtain title and possession). Tenant will accept such curative or remedial action (if any) taken by Landlord’s Mortgagee with the same effect as if such action had been taken by Landlord.

 

This Lease shall be subject and subordinate to any mortgage now or hereafter covering the Building or Leased Premises. The foregoing provision shall be self-operative but, Tenant shall upon Landlord’s request promptly execute any instrument or instruments which Landlord may deem necessary or desirable to further evidence the subordination of the Lease to any and all such mortgages and/or deeds of trust. Tenant hereby appoints Landlord and or Landlord’s successor(s) In interest as Tenant’s attorney-in-fact to execute any and all documents necessary to effectuate all the provisions of this Section.

 

	19.	ASSIGNMENT BY LANDLORD: If the interest of Landlord under this Lease shall be transferred voluntarily or by reason of foreclosure or other proceedings for enforcement of any mortgage on the Leased premises, Tenant shall be bound to such transferee (herein sometimes called the “Purchaser”), for the balance of the term hereof remaining and any extensions or renewals thereof which may be effected in accordance with the terms and provisions hereof, with the same force and effect as if the Purchaser were the Landlord under this Lease, and Tenant dies hereby agree to attorn to the Purchaser, as its Landlord, said attornment to be effective and self-operative without the execution of any further instruments upon the Purchaser succeeding to the interest of Landlord under this Lease. The respective rights and obligations of Tenant and the Purchaser upon such attornment to the extent of then remaining balance of the term of this Lease and any such extensions and renewals shall be and are the same as those set forth herein. In the form all liability and responsibility thereafter accruing to tenant under this Lease or otherwise, and Landlord’s successor by acceptance of rent from Tenant hereunder shall become liable and responsible to Tenant in respect to all obligations of the Landlord under this Lease.

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	20.	ASSIGNMENT AND SUBLEASING BY TENANT: Without the written consent of Landlord first obtained in each case, Tenant shall not assign, transfer, mortgage, pledge, or otherwise encumber or dispose of this Lease for the term hereof, or underlet the Leased Premises or any part thereof or permit the Leased Premises to be occupied by anybody other than the Tenant. No assignment of this Lease nor sublease of the Leased Premises shall release Tenant from any obligations contained herein. The Landlord may after default by the Tenant collect or accept rent from the assignee, undertenant, or occupant and apply the net amount collected or accepted to the rent and other amounts herein reserved, but no such collection or acceptance shall be deemed a waiver of this covenant or the acceptance of the assignee, undertenant or occupant as Tenant, nor shall it be construed as, or implied to be a release of the Tenant from the further observance and performance by the Tenant of the terms, provisions, covenants and conditions herein contained. In the event Tenant desired Landlord’s consent to any assignment or sublease Tenant shall provide such information as Landlord shall reasonably require to evaluate the proposed assignee or subtenant, including without limitation, name, references, audited financial statements and nature of business. Any assignee or subtenant must agree in writing to be bound by all terms and provisions hereof (expect that as to subtenants, the subtenant’s rental will be governed by its sublease).

 

	21.	SUCCESSORS AND ASSIGNS: All terms, provisions, covenants and conditions to be observed and performed by Tenant shall be applicable to and binding upon Tenant’s respective helis, administrators, executors, successors and assigns, subject, however to the restrictions as to assignment or subletting by Tenant as provided herein. All expressed covenants of this Lease shall be deemed to be covenants running with the land.

 

	22.	INSURANCE; TENANT’S INDEMNIFICATION: Tenant shall, during the entire lease term, at its sole cost and expenses, provide and keep in full force and effect a policy of Commercial general Liability insurance covering the Leased premises, and the business operation by Tenant in an amount of not less than $3,00,000.00 combined single limit liability for bodily injury and property damage. The policy shall name Quentin Partners Co. and Intracoastal Pointe Inc., and any person, firms or corporations designated by Landlord as an additional insurance carrier will not cancel or change the insurance without first giving the Landlord ten (10) days prior written notice. The insurance shall provide Landlord a true copy of said policy and a certificate of Insurance.

 

Tenant agrees to pay any increase in premiums from fire an extended coverage insurance that may be charged during the terms of the Lease resulting from the activity of Tenant or merchandise stored by Tenant in the Leased Premises, whether or not Landlord has consented to the same. Bills for such additional premiums shall be rendered by Landlord to Tenant at such times as Landlord may

11

elect, and shall be due from, and payable by Tenant when rendered, and the amount thereof shall be deemed to be additional rent.

 

Tenant will indemnify Landlord and save it harmless from and against any and all claims, actions, damages, liability and expense in connection with loss by fire, personal injury and/or damage to property arising from or out of any occurrence in, upon or at the Leased Premises or any part thereof, or occasioned wholly or in part by any act or omission of Tenant, its agents, guests, contractors, employees, servants, subtenants, assignees, or concessionaries. Tenant shall also pay all costs, expenses and reasonable attorneys’ fees (including appeals) that may be incurred or paid by Landlord in enforcing the covenants and agreements in this Lease.

 

Tenant shall replace, at the expense of Tenant, any and all plate and other glass damaged or broken arising from or out of any act of Tenant, its agents, guests, contractors, employees, servants, subtenants or concessionaires.

 

Landlord and Tenant hereby waive any and all rights or recovery against each other, their officers, employees and agents, for loss occurring to the Leased Premises to the extent covered by insurance proceeds provided that the applicable insurance policy contains a waiver of a right of subrogation. Each party shall use reasonable efforts to obtain a waiver of subrogation from the insurance carrier providing their insurance.

 

	23.	MUTUAL INDEMNITIES: In consideration of the Leased Premises being leased to Tenant for the above rental, Tenant agrees: that Tenant, at all times, will indemnify and hold harmless Landlord from all losses, damages, liabilities and expenses, which may arise or be claimed against Landlord and be in favor of any persons, firms or corporations, for any injuries or damages to person or property, consequent upon or arising from any acts, omissions, neglect or fault of Tenant, its agents, servants, employees, licensees, visitors, customers, patrons or invitees, or consequent upon or arising from Tenant’s failure to comply with any laws, statutes, ordinances, codes or regulations or any provisions of this Lease, Landlord shall not be liable to Tenant for any damages, losses or injuries to the persons or property of Tenant which may be caused by the acts, neglect, omissions or faults of any person, firms or corporations, except when such injury, loss or damage results from gross negligence or willful misconduct of Landlord, its agents or employees. All personal property placed or moved into the Leased Premises or the building shall be at the risk of Tenant or the owners thereof, and Landlord shall not be liable to Tenant for any damages to said personal property. Tenant shall maintain at all times during the term of the Lease an insurance policy or policies in an amount or amounts sufficient to indemnify Landlord and to pay Landlord’s damages, if any, resulting from any matter set forth in Section.

 

In case Landlord shall be made party to any third party litigation commenced by or against Tenant, Tenant shall protect and hold Landlord harmless and shall pay

12

all cost, expenses and reasonable attorney’s fees incurred or paid by Landlord in connection with such litigation.

 

In consideration of the Leased Premises being leased to Tenant for the above rental, landlord agrees: that Landlord, at all times, will indemnify and hold harmless Tenant from all losses, damages, liabilities and expenses, which may arise or be claimed against Tenant and be in favor of any persons, firms or corporations, for any injuries or damages to person or property, consequent upon or arising from any acts, omissions, neglect or fault or Landlord, its agents, servants, employees, licensees, visitors, customers, patrons or invitees, or consequent upon or arising from Landlord’s failure to comply with any laws, statutes, ordinances, codes or regulations or any provisions of this Lease. Tenant shall not be liable to Landlord for any damages, losses or injuries to the persons or property of the Landlord which may be caused by the acts, neglect, omissions or faults of any persons, firms or corporations, except when such injury, loss or damage results from gross negligence or willful misconduct of Tenant, its agents or employees. Landlord shall maintain at all times during the term or this Lease an insurance policy or policies in an amount or amounts sufficient to indemnify Tenant and to pay Tenant’s damages, if any, resulting from any matter set forth in this Section.

 

In case Tenant shall be made a party to any third party litigation commenced by or against Landlord, Landlord shall protect and hold Tenant harmless and shall pay all cost, expenses and reasonable attorneys’ fees and disbursements incurred or paid by Tenant in connections with such litigation.

 

	24.	ATTORNEY’S FEES: In the Tenant defaults in the performance of any of the terms, provisions, covenants and conditions of this Lease and by reason thereof the Landlord employs the services of an attorney to enforce performance of same by the Tenant or to perform any services based upon said default, the Tenant agrees to pay reasonable attorney’s fees and all expenses, costs and charges incurred by the Landlord pertaining thereto and enforcement of any remedy available to the Landlord.

 

In the event of the institutions of litigation to enforce the provisions of the Lease to evict Tenant, or to collect moneys due from the date of default in the event of a money judgment, Tenant shall be responsible for cost of such litigation and reasonable attorney’s fees at the trial level and at all levels of appeal.

 

In the event Landlord is the prevailing party, the awardable sums with all costs, interest and damages shall be deemed additional rent hereunder and shall be due from Tenant to Landlord on the first day of the month following the month in which the respective expenses, etc., were incurred.

 

In the event the Tenant is the prevailing party, the awardable sums with all costs shall be bourne by Landlord.

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25.

	
GOVERNMENTAL REGULATIONS: Tenant shall faithfully observe in the use of the Leased Premises all municipal and county ordinances and codes and state, local and federal statutes or laws, rules, regulation, or other governmental requirements now in force or which may hereafter be in force.

	
26.

	
FIRE OR CASUALTY: In the event the Building shall be destroyed, or so damaged, or injured by fire or other casualty during the term of this Lease whereby the Leased Premises shall be rendered untenantable, the Landlord shall have the right to render the Leased Premises tenantable by repairs within one hundred eighty (180) days therefrom. If the Leased Premises are not or will not be rendered tenantable within said time, it shall be optional with either party hereto to cancel this Lease, and in the event of such cancellation, the rent shall be paid only to the date of such fire or casualty. Landlord shall also have the option to cancel this Lease in the event the Building is damaged to such an extent that Landlord elects not to repair the damage. Any cancellation shall be evidenced in writing. During any time that the Leased Premises are untenantable due to causes set forth in this Section, the rent or a just and fair proportion thereof (based upon the portion of the Leased Premises that are not untenantable) shall be abated.

 

Landlord shall not restore fixtures and improvements installed by Tenant either at the commencement of the Lease or during the leasehold term.

 

	
27.

	
EMINENT DOMAIN: If there shall be taken during the term of this Lease any part of the Leased Premises, parking facilities or Building, other than a part not interfering with maintenance, operation or use of the Leased Premises, Landlord may elect to terminate this Lease or to continue same in effect. If Landlord elects to continue the Lease, the rental shall be reduced in proportion to the area of the Leased Premises so taken and Landlord shall repair any damage to the Leased Premises, parking facilities, or Building resulting from such taking. If any part of the Leased Premises is taken by condemnation or eminent domain and the Landlord elects to continue the Lease, the rental assessment shall be reduced in proportion to the area of the Leased Premises so taken and Landlord shall repair any damage to the Leased Premises resulting from such taking. All sums awarded or agreed upon between Landlord and the condemning authority for the taking of the interest for partial or total condemnation, will be the property of the Landlord, except that Tenant shall be entitled to any award for Tenant’s moving expenses or personal property (but in no event shall Tenant be entitled to any award for the loss of the leasehold estate). If this Lease should be terminated under any provisions of this Section, rental shall be payable up to the date that possession is taken by the taking authority, and Landlord will refund to Tenant any prepaid unaccrued rent less any sum or amount then owing by Tenant to Landlord.

	
28.

	
ABANDONMENT: If, during the term of the Lease, Tenant shall abandon, vacate or remove from the Leased Premises the major portion of the goods, wares, equipment or furnishings usually kept on said Leased Premises, and shall cease

14

doing business in said Leased Premises, or shall suffer the rent to be in arrears, Landlord may, at its option, cancel this Lease by written notice to Tenant at Tenant’s address, or Landlord may enter said Leased Premises as the agent of Tenant by force or otherwise, without being liable in any way therefore, and relet the Leased Premises with or without any furniture that may be therein as the agent of Tenant, at such price and upon such terms and for such duration of time as Landlord may determine and receive the rent and for such expenses therefore applying the same to the payment of the sums due by Tenant and if the full rental herein provided shall not be realized by Landlord over and above the expense to Landlord of such reletting, Tenant shall pay any deficiency provided that the Landlord has made reasonable efforts to achieve a fair lease.

	
29.

	
BANKRUPTCY: It is agreed between the parties hereto that: if Tenant shall be adjudicated bankrupt or insolvent or take the benefit of any federal reorganization or compensation proceeding or make a general assignment or take the benefit of any insolvency law; or, if Tenant’s leasehold interest under this Lease shall be sold under any execution or process of law or if a trustee in bankruptcy or a receiver be appointed or elected or had for Tenant (whether under Federal or State Laws); or if said Premises shall be abandoned or deserted; or if Tenant shall fail to perform any of the terms, provision, covenants or conditions of this Lease on Tenant’s part to be performed; or if this Lease of the Term thereof be transferred or pass to or devolve upon any person, firms, officers or corporations, then and in any such event this Lease and the Term of this Lease, at Landlord’s option, shall expire and end five (5) days after Landlord has given Tenant written notice of such act, condition or default and Tenant hereby agrees immediately then to quit and surrender said Leased Premises to Landlord; but this shall not impair or effect Landlord’s right to maintain summary proceeding for the recovery of the possession of the Leased Premises in all cases as provided for by law. If the term of this Lease shall be so terminated, Landlord may immediately or at any time thereafter, re-enter or repossess the Leased Premises and remove all persons and property therefrom without being liable for trespass or damages.

	
30.

	
(DELETED)

	
31.

	
WAIVER: 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 the right to declare any such default at any time and take such action as might be lawful or authorized hereunder, in law and/or in equity. No waiver by Landlord of a default by Tenant shall be effective unless contained in a written instrument signed by Landlord.

No waiver of any tem, provision, condition or covenant of this Lease by Landlord shall be deemed to imply or constitute a further waiver by Landlord of any other term provision, condition or covenant of this Lease.

15

	32.	RIGHT OF ENTRY: Landlord, or any of his agents, shall have the right to enter the Leased Premises at any time for exigent circumstances and during all reasonable hours with reasonable notice, to examine the same or to make such repairs, additions or alterations as may be deemed necessary for the safety, comfort or preservation thereof, or of the Building, or to exhibit the Leased Premises at any time within one hundred eighty (180) days before the expiration of the Lease. Landlord will retain pass keys and any passcodes to gain entry to the entire Premises. Said right of entry shall also exist for the purpose of removing placards, sigh fixtures, alterations or additions which do not conform to this Lease.

 

	33.	NOTICES: Any notice to be given shall be sent by certified mail, or hand delivered to the Parties designated address or to such other place or places as The Parties may specify in writing.

 

	34.	RULES AND REGULATIONS: Tenant agrees to comply with all reasonable rules and regulations Landlord may adopt from time to time of operation of the Building and parking facilities and protection and welfare of the Building and parking facilities, the tenants, visitors, and occupants of the Building. The present rules and regulations, with respect to which Tenant hereby agrees to comply, entitled “Rules and regulations” (Exhibit A) are attached hereto and are by this reference incorporated herein. Any future rules and regulations shall become a part of this Lease and Tenant hereby agrees to comply with the same upon delivery of a copy thereof to Tenant, providing the same are reasonable and do not deprive Tenant of its rights established under this Lease.

 

	35.	CONTROL OF COMMON AREAS AND PARKING FACILITIES BY LANDLORD: All automobiles parking areas, driveways, entrances and exists thereto, Common Areas and other facilities furnished by landlord, including all parking areas, truck way or ways, loading areas, pedestrian walkways and ramps, landscaped areas, stairways, corridors, Common Areas and other areas and improvements provided by Landlord for the general use, in common, of tenants, their officers, agents, employees, servants, invitees, licensees, visitors, patrons, and customers, shall be at all times subject to the exclusive control and management of Landlord and arrangement of parking areas and other facilities herein above referred to; to restrict parking by and enforce parking charges (by operation of meters or otherwise)upon visitors, patrons, and customers; to close all or any portion of said areas legally sufficient to prevent a dedication thereof or the accrual of any rights to any person or public areas, common areas or facilities; to discourage non-tenant parking; and to do and perform such other acts in and to said areas and improvements, as, in the sole judgment of Landlord, the landlord shall determine to be advisable with a view to the convenience and use thereof by tenants, their officers, agents, employees servants invitees, visitors, patrons, licensees and customers. Landlord will operate and maintain the Common Areas and other facilities referred to in such reasonable manner as Landlord shall determine from time to time. Without limiting the scope of such discretion, landlord sjall have the full right and authority to designate a

16

manager of the parking facilities and/or Common Area and other facilities who shall have full authority to make full authority to make and enforce rules and regulation regarding the use of the same or to employ all personnel and to make and enforce all rules and regulations pertaining to and necessary for the proper operation and maintenance of the parking areas and/or common areas and other facilities. Reference in this Section to parking areas and/or facilities shall in no way be construed as giving Tenant hereunder any rights and/or privileges in connection with such parking areas and/or facilities unless such rights and/or privileges are expressly set forth in this Lease.

	
36.

	
SURRENDER OF LEASED PREMISES: Tenant agrees to surrender to Landlord, at the end of the term of this Lease and/or upon any cancellation of this Lease, said Leased Premises in as good condition as the Leased Premises were at the beginning of the term of the Lease, ordinary wear and tear and damage by fire or other casualty not caused by Tenant’s negligence, excepted, Tenant agrees that if Tenant does not caused by Tenant’s negligence, excepted. Tenant agrees that if Tenant does not surrender said Leased Premises to Landlord at the end of the term of this Lease, then Tenant will pay to Landlord two (2) times the monthly rent paid in the final month of Tenant’s term hereunder for each month that Tenant holds over; in addition Tenant shall pay all damages that Landlord may suffer on account of Tenant’s failure to so surrender to Landlord harmless from and against all claims made by any succeeding tenant of the Leased Premises so far as such delay is occasioned by failure of Tenant to so surrender the Leased Premises in accordance herewith or otherwise.

No receipt of money by Landlord from Tenant after termination of this Lease or the service of any suit or final judgment for possession shall reinstate, continue or extend the term of this Lease or affect any such notice, demand, suit or judgment.

No act or thing done by Landlord or its agents during the term hereby granted shall be deemed an acceptance of surrender of the Leased Premises and no agreement to accept a surrender of the Leased Premises shall be valid unless it be made in writing and subscribed by a duly authorized officer or agent of Landlord.

 

	
37.

	
TAXES ON TENANT’S PERSONAL PROPERTY: Tenant shall be responsible for and pay before delinquency all municipal, county or state taxes assessed during the term of this Lease against any occupancy interest or personal property of any kind, owned by or placed in, upon or about the Leased Premises by the Tenant.

	
38.

	
PRIOR OCCUPANCY: If Tenant, with Landlord’s consent, shall occupy the Leased Premises prior to the beginning of the Lease term specified in Section 2 hereof, all provisions of this Lease shall be in full force and effect commencing upon such occupancy, and rent for such period shall be paid by Tenant at the same rate herein specified.

17

	39.	SHORT FORM LEASE: Tenant shall, if so required by Landlord at any time, execute a short form Lease in recordable form setting forth the name of the parties, the term of the Lease (stating the commencement of Lease term called for in Section 2), and the description of the Leased Premises, and such other matters as Landlord shall reasonably request. In no event shall the Tenant record this Lease, any memorandum thereof or reference thereto, amongst th Public Records of any County of the State of Florida without the prior written consent of Landlord. Any violation of this provision by Tenant shall be immediate default hereunder.

 

	40.	WAIVER OF TRIAL BY JURY: Landlord and Tenant hereby waive trial by jury in any action, proceeding or counterclaim brought by either of the parties hereto against the other on any matter arising about, of or in any connected with the Lease, the relationship of Landlord and Tenant or Tentant's use of or occupancy of the Premises. Tenant further agrees that it shall not interpose any counterclaim or counterclaims in a summary proceeding or in any action based upon nonpayment of rent or any other payment required of Tentant hereunder.

 

	41.	(DELETED)

 

	42.	SEVERABILITY: If any terms, provision, convenant or condition of this Lease or the application thereof to any person or circumstance shall, to any extent be invalid or unenforceable, the remainder of this Lease, or the application of such terms, provisions, covenant or condition to persons or circumstances other than those as to which it is held invalid or enforceable shall not be affected thereby and each term, provision, convenant or condition of this Lease shall be valid and be enforceable to the fullest extent permitted by Law. This Lease shall be construed in accordance with the laws of the State of Florida.

 

	43.	TIME: It is understood and agreed between the parties hereto that time is of the essence of all the terms, provisions and covenants and conditions of the Lease.

 

	44.	DEFINITIONS

 

		(A)	The terms Landlord and Tenant, as herein contained, shall include singular and/or plural, masculine, feminine, and/or neuter, heirs, successors, executors, administrators, personal representatives and/or assigns wherever the context so requires or admits. The terms provisions, covenants and conditions of this Lease are expressed in the total language of this Lease Agreement and the Section headings are solely for the convenience of the reader and are not intended to be all inclusive.

		(B)	Calendar Year shall be a twelve month period ending on each December 31.

		(C)	Base Year is the Calendar Year in which the Lease Commencement Date occurs.

		(D)	
Base Month is the month in which the lease commences.

18

		(E)	
The Consumer Price Index is the United States Bureau of  Labor Statistics, "Revised Consumer Price Index, for Urban Wage Earners and Clerical Workers, All terms (1967=100)" or any successor thereto published by the United States Department of Labor, Bureau of Labor Statistics; provided, that should the said Consumer Price index or the manner of computing or reporting same be discontinued or changed, the parties shall attempt to agree upon a substitute formula, and failing such agreement the matter shall be determined by arbitration in Jupiter under the Rules of American Arbitration Association then prevailing.

		(F)	
Code shall mean the City of Jupiter (Country, State or Federal) building, Electrical, Air Conditioning, Plumbing or other, as the same may be applicable.

		(G)	
Building means the actual structure wherein the Leased Premises are located.

		(H)	
Pro ration of rent shall be over a thirty (30) day month.

 

	45.	TENDER AND DELIVERY OF LEASE INSTRUMENT: Submission of this Instrument for examination does not constitute an offer, right of first refusal, reservation of or option for the Leased Premises or any other space or premises in, on or about the Building. This instrument becomes effective as a Lease upon execution and delivery by both Landlord and Tenant.

 

	46.	SERVICES: Services to be provided to Tenant shall be common area janitorial service (weekday nights), automatic elevator service, Public stairs, water at points of supply for general use by Tenant throughout the year, electricity, heat and air conditioning as noted herein to be operated Monday through Friday 7:00 a.m. to 8:00 p.m. and 8:00 a.m to 1:00 p.m Saturdays, excluding legal holidays.

 

	47.	JANITORIAL SERVICES: Tenant shall be responsible for contracting with and payment of Janitorial services within their Leased Premises to a quality standard commensurate with other similar quality buildings in the area. (See Section 7.) Landlord will make available to Tenant a suitable janitorial service.

 

	48.	
WRITTEN AGREEMENT: This Lease contains the entire agreement between the parties hereto and all previous negotiations leading thereto, and it may be modified only by an agreement in writing signed by Landlord and Tenant. No surrender of  the Leased Premises or of the remainder of the terms of the Lease shall be valid unless accepted by landlord in writing. Tenant acknowledges and agrees that Tenant has not relied upon any any statement, representation, prior written or prior written or prior contemporaneaus oral  promises, agreements or warranties except such as are expressed herein. 

 

	49.	
RlGHT TO SELL CONDOMINlUM UNITS: Landlord reserves the right to cause the building and surrounding property, including the leasehold premises, to be converted to condominium to be created by the Landlord as may be reasonably necessary regarding the creation of the condominium and agrees to execute any and all documents which may be required to create said condominium, provided that such action required by the Tenant shall be at no cost to the Tenant. This action shall not intefere with Tenants Leasehold rights.

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	50.	LIMITATIONS OF LANDLORD'S PERSONAL LIABILITY. Tenant specifically agrees to look solely to Landlord's interest in the Building for the recovery of any judgment from Landlord, it being agreed that Landlord (and any partners of Landlord and any trustees, officers, shareholders or employees  of Landlord) shall never be personally liable for any such judgment. The provisions contained in the foregoing sentence are not intended to, and shall not, limit any right that Tenant might otherwise have to obtain injunctive relief against Landlord or Landlord's successors in interest, or any other action not involving the personal liability of  Landlord's to respond in monetary damages from assets other than Landlord's interest in the Building of any suit or action in connection with enforcement or collection of amounts which may become owing or payable under or on account of insurance maintained by Landlord.

 

	51.	SMOKING. This is a non-smoking building. Tenant and its employees shall smoke outside the building. Under no circumstances shall Tenant allow its employees to smoke in the suite, hallways, stairwells, entry way, or elevators of the Building. Tenant and its employees shall not leave remnants or partially smoked items on the grounds except in receptacles specifically designed for the purpose.

 

	52.	BROKERAGE. All parties agree that there are no brokers involved in this transaction.

 

	
53.

	
Authority. The undersigned represent and warrant  that they are duly authorized to enter this contract.

20

IN WITNESS WHEREOF, the parties hereto have signed and delivered this Lease in duplicate at Palm Beach County, Florida, on the date written below.

 

	
LANDLORD

		
TENANT

	 		
	
QUENTIN PARTNERS CO.

		
DYADIC INTERNATIONAL, INC.

	
As Agent For:

		
 

	
Intracoastal Pointe, Inc.

		
 

	
 

		
 

	
By: James Q. Riordan, Jr.

		
Mark  

	President		President

 

	
WITNESS:

		
WITNESS:

	 		
	
 

		

			
 

	Sharon L. Wood		
(Printed name of Witness)

	 		
	
1/5/2011

		
28 December 2010

	
Date

		
Date

21

EXHIBIT A

RULES AND REGULATIONS

 

	1.	Landlord reserves the right to refuse access to any persons Landlord In good faith Judges to be a threat to the safety, reputation, or property of the Office Building Project and Its occupants.

 

	2.	Tenant shall not suffer or permit the obstruction of any Common Areas, including driveways, walkways, stairways, and doorways of the Building. These shall not be obstructed  or used  for any purpose other than Ingress to and egress from the units. No furniture, equipment, or other personal articles shall be placed in the entrances, stairways or other common elements.

 

	3.	
No exterior of any premises or the windows or doors thereof or any other portions of the common elements shall be painted or decorated in any manner by any Tenant.No sign, notice, lettering, of advertising shall be Inscribed or exposed on or at any window, door, or at any other part  of the Building; nor shall anything be projected out of any window of the building. Tenant shall not be allowed to put their names on any entry to the building or entrance to any unit, except in the proper place provided by the Landlord for such purpose. No protective window film, shades, awnings, window guards ventilators, fans or air-conditioning devices shall be used in or  about the Building or common elements expect such as shall have been approved In writing by Landlord.

 

	4.	
No Tenant shall make or permit any noise or objectionable odor that will disturb or annoy the occupants of any of the premises in the Building or do permit anything to be done therein which will interfere with the rights, comfort, or convenience of other Tenants.

 

	5.	
Each Tenant shall keep his unit in a good state of preservation and cleanliness and shall not sweep or throw or permit to be swept or thrown therefrom or from the doors or windows thereof, any dirt or other substances. All garbage and refuse from the Building shall be deposited with care in receptacles intended for such purpose only at such times and in such manner as Landlord may direct. Disposal for all garbage that is not in the course of normal day to day operations- i.e, shipping boxes for computer printers, filing cabinets, and other large items - must be handled by tenant at tenant's cost.

 

	6.	
Water closets and other water apparatus in the Building shall not be used for any purpose other than those for whcich they were constructed nor shall any sweepings, rubbish, rage, paper, ashes, or any other article be thrown into the smae. Any damage resulting from miuses of any water closet or other apparatus shall be paid for by the Tenant causing such damage.

 

	7.	
The agents of the Landlord and any contractor or workman authorized by the Landlord may enter any unit at any reasonable hour of the day for any purpose permitted under the terms of the Lease or Building Rules. No Tenant shall engage any employee of the Landlord for any private business of the Tenant without prior content of the Landlord. Tenant shall not employ any service or contractor for services or work to be performed in the Building except as approved by Landlord.

 

	8.	No bird or animal shall be kept or harbored in the Building unless the same in each instance be expressly permitted in writing by the Landlord. In no event shall dogs be permitted in any of the public portions of the buildings or developemnt unless carried or on a leash. The Tenant shall indemnify the Landlord and hold it harmless against any loss or laiability of any kind or character whatsoever arising from or as a result of having any animal in the building.

 

	9.	
No radio or television aerial shall be attached to or hung from the exterior of the building without written approval by the Landlord.

 

	10.	
The Landlord shall retain a passkey to each unit. No Tenant shall alter any lock on any door leading into his unit without prior consent of the Landlord. Tenant shall not alter any lock or Install new or additional locks or bolts to the common areas of the property.

	11.	No Tenant, or any employee or any client, visitor, or guest of a Tenant shall be allowed on the roof of the building without the express permission of the Landlord.

 

	12.	
All damage to the building or common elements caused by the moving or carrying of any article therein shall be paid by the Tenant responsible for the presence of such article.

 

	13.	
No Tenant shall interfere In any manner with any portion of the electrical system and lighting apparatus which are part of the common elements and not part of the Tenant's.

 

	14.	
No Tenant shall use or permit to be brought Into the building any flamable oils or fluide such as gasoline, kerosene, naptha, benzine or other explosives or any hazardous materials or articles deemed hazardous to life, limb or property.

 

	15.	
The Tenant must keep the interiors of the leased premises clean and free from obstruction. The Landlord assumes no liability for loss or damage to articles stored or placed in the building.

 

	16.	
Tenant shall be held responsible for the actions of its employees, visitors, clients, or guests. Any damage to the building or equipment caused by Tenant, its employees, guests, visitors, or clients shall be repaired at the expense of the Tenant.

 

	17.	
Complaints regarding the management of the building and grounds or regarding the actions of other Tenants shall be made In writing to the Landlord.

 

	18.	
Parking of motor vehicles, Including motorcycles, mopeds, trailers, or bicycles by Tenant, its employees, guests, clients, or visitors shall be only in the space designated as parking; no unattended vehicle shall at any time by left in such a manner as to impade the passage or traffic or to impair proper access to parking areas. No repair, cleaning, or maintenance of motor vehicles, including motorcycles, mopeds, trailers, or bicycles shall occur on the property, with exception of emergency repair to have vehicle removed to a qualified repair facility. No storage of motor vehicles, including motorcycles, mopeds, trailers, bicycles or any objects shall be permitted on the driveway and parking areas and the same shall at all times be kept free of unreasonable accumulation of debts or rubbish of any kind.

 

	19.	Supplies, goods, and package of every kind are to be delivered in such a manner as the Landlord or its agents may prescribe and the Landlord is not responsible for the loss or damage of any such property

 

	20.	
No unit shall be used or occupied in such manner as to obstruct or Interfere with the enjoyment of other occupants, or other residents of adjoining units, nor shall any nuisance or immoral or Illegal activity be commited or permitted to occur or about any unit or upon any part of the common element of the property.

 

	21.	The common elements are intended for use for the purpose of affording vehicular and pedestrian movement within the property and of providing access to the units. No part of the common elements shall be obstructed so as to interfere with its use for the purposes herein above recited nor shall any part of the common elements be used for general storage purposes, nor anything done there on in any manner which shall increase the rate of hazard and liability insurance covering said area and improvements situated thereon.

	22	Tenant shall be responsible for the inappropriate use of toilet rooms, plumbing or other utilities. No foreign substances of any kind are to be inserted therein.

	23.	Tenant shall not deface the walls, partitions or other surfaces of the premises or office Building Project.

	24.	Furniture, significant freight and equipment shall be moved into or out of the building only with the Landlord’s knowledge and consent, and subject to such reasonable limitations, techniques and timing, as may be designated by Landlord. Tenant shall be responsible for any damage to the Office Building Project arising from any such activity. Tenant may be asked to provide a deposit against possible damage resulting from movements of the aforementioned.

	25	Landlord reserves the right to close and lock the Building on Saturdays Sundays and legal holidays, and on other days between the hours of 6:00 PM and 6:00 Am of the following day. If Tenant uses the premises during such periods, Tenant shall be responsible for securely locking any doors it may have opened for entry.

	26	Tenant shall return all keys at the termination of its tenancy and shall be responsible for the cost of replacing any keys that are lost.

	27	No Tenant, employee or invitee shall go up on the roof of the Building.

	28	Tenant shall not suffer or permit smoking or carrying of lighted cigars or cigarettes to areas reasonably designated by Landlord or by applicable governmental agencies as non smoking areas.

	29	Tenant shall not use any method of heating or air conditioning other than as provided by Landlord.

 

	30	Tenant shall not install, maintain or operate any vending machine upon the Premises without Landlord’s written consent.

	31	The Premises shall not be used for loading or manufacturing, cooking or food preparartion.

	32	Tenant shall comply with all safety, fire protection and evacuation regulations established by Landlord or any applicable governmental agency.

	33	Tenant assumes all risks from theft or vandalism and agrees to keep its Premises locked as may be required.

	34	Landlord reserves the right to walve any one of these rules or regulations, and/or as to any particular Tenant, and any such walver shall not constitute a walver of any other rule or regulation or any subsequent application thereof to such Tenant.

	35	Landlord reserves the right to make such other reasonable rules and regulations as it may from time to time deem necessary for the appropriate operation and safety of the Building Project and it occupants. Tenant agrees to abide by these rules and regulations. These Building Rules may be added to repealed at any time by the Landlord.Exhibit 10.9

	
 

	
 

	
801 Maplewood Drive, Unit 17

	
August 1, 2006

	
 

	
Jupiter, Florida 33458

	
 

	
 

	
(561) 575-1440

	
RE: Lease

	
 

	
Fax:   (561) 575-3457

Richard or Sasha

Dyadic International, Inc.

140 Intracoastal Pointe Drive, Suite 404

Jupiter, FL 33477-5094

Dear Richard or Sasha:

Following is the new lease to be executed for units 6 & 7 at 500 Commerce Way W, Jupiter, FL 33458. As discussed with John the lease will mirror the lease for unit 5. We need to get a letter from you indicating you wish to exercise the option to renew the lease for unit 5. Rent currently due for unit 5 is $1,810.50. This reflects August rent and the remainder due from the increase in July detailed in the option to renew in that lease. The amount due for units 6 & 7 is $1704.00, which is August rent plus 6 1⁄2% sales tax. If you have any question please call the number listed above.

Thank you,

/s/ Brian J. Smith

Brian J. Smith

Office Manager

Prima Properties

 

BJS

LEASE AGREEMENT

THIS LEASE AGREEMENT, made and entered into on the 31st day of July, 2006, by and between 500 West Commerce Way, L.L.C., hereinafter referred to as Lessor, party of the first part, and Dyadic International (USA), Inc., a Florida Corporation hereinafter referred to as Lessee, party of the second part:

W I T N E S S E T H:

That Lessor does this day lease unto Lessee, and Lessee does hereby hire and take under this Lease, that portion of the premises located at 500 Commerce Way, Jupiter, Florida, known as Units 6 & 7 (hereinafter referred to as the "Demised Premises"). In addition to the Demised Premises, Lessee shall be entitled to the non-exclusive use of the parking lot (for purposes of ingress, egress and parking only) and the exterior sidewalks to and from the Demised Premises (for pedestrian ingress and egress only).

The Demised Premises shall be used and occupied by Lessee as Dyadic International (USA), Inc., and for no other purposes or uses whatsoever.   Lessee specifically covenants and agrees that it will not use, or permit to be used, any part of the Demised Premises as anything other than Dyadic International (USA), Inc.  The term of the lease shall be one (1) year, beginning on the 1st day of August, 2006 and ending on the 31st day of July, 2007 at 12:00 A.M. (midnight), for the total sum of Nineteen Thousand Two Hundred Dollars ($19,200.00) ("Total Sum Due"), plus sales tax (presently at a rate of 6 1/2%).  Provided that Lessee is not in default hereunder beyond the expiration of all applicable notice and cure periods, Lessee may pay the Total Sum Due in installments of $1,600.00 per month (plus sales tax).  All payments of rent shall be made to Lessor in advance without demand on the 1st day of each month at 801 Maplewood Drive, Suite 17, Jupiter, Florida 33458, or at such other place and to such other person, as Lessor may designate in writing.  All rent shall be paid to Lessor without demand, set-off or any deduction whatsoever.   If any payment is not received within ten (10) days after the date due, a late charge of five (5%) per cent of the total payment shall be due Lessor as additional rent. Provided that Lessee is not in default hereunder, Lessee shall have the option to extend the lease for two (2) additional one-year terms (Lease Options).  For the first such additional one­ year term, Lessee shall pay a total sum of $20,400.00 plus sales tax, in monthly installments of $1,700 plus sales tax. For the second such additional one-year term, Lessee shall pay a total sum of $21,600.00 plus sales tax, in monthly installments of $1,800 plus sales tax. Each Lease Option shall be exercised automatically unless cancelled by the Lessee upon a thirty (30) day written notice prior to the expiration of the respective one-year term.

Lessor and Lessee agree to the following express stipulations and conditions:

FIRST:  ASSIGNMENT.  ENCUMBRANCE AND IMPROVEMENTS.  Lessee shall not assign this lease, nor sublet the Demised Premises, or any part thereof nor use the same, or any part thereof, nor permit the same, or any part thereof, to be used for any other purpose than as above stipulated, without the prior written consent of Lessor, which consent may be arbitrarily withheld by Lessor.

SECOND:  PERSONAL PROPERTY.  All personal property placed or moved on the Demised Premises above described shall be at the risk of Lessee or the owner thereof, regardless of the cause of said damage, including but not limited to, damage arising from the bursting or leaking of water pipes or from any act of negligence of any co-Lessee, other occupants of the building or of any other person whomsoever.

THIRD:  COMPLIANCE WITH LAW.  Lessee shall promptly execute and comply with all statutes, ordinances, rules, orders, regulations and requirements of the Federal, State and City Government and of any and all their Departments and Bureaus applicable to said Demised Premises, for the correction, prevention, and abatement of nuisances or other grievances, in, upon, or connected with said Demised Premises during said term; and shall also promptly comply with and execute all rules, orders and regulations of the Southeastern Underwriters Association for the prevention of fires, at Lessee's own cost and expense.

FOURTH:  DEMISED PREMISES RENDERED UNTENANTABLE BY CASUALTY. If the Demised Premises are damaged or destroyed so that the Demised Premises are rendered wholly untenantable, rent shall be proportionately paid up to the time of the casualty and thenceforth shall cease until the date when the Demised Premises have been repaired or restored by Lessor to the condition existing just prior to the date of casualty; provided, however, that in the event the Demised Premises have been rendered wholly untenantable, and if Lessor will be unable to restore the Demised Premises within sixty (60) days from the date of the casualty, Lessor or Lessee shall have the right to terminate the term of the Lease by giving

notice to the other of its exercise of such right at any time within thirty (30) days after the occurrence of such damage or destruction.   If this notice is given, the term of the Lease shall terminate on the date specified in the notice, (which shall be not more than fifteen days after giving of such notice), as fully and completely as if such date were the date set forth in the Lease.  If Lessee exercises the option to terminate the Lease, Lessee must vacate the Demised Premises no later than three (3) days after the delivery of the notice of termination.   If neither party has given the notice of termination as herein provided, Lessor shall proceed to repair the Demised Premises, and the Lease shall not terminate.

If the Demised Premises shall be partially damaged or partially destroyed, the damages shall be repaired by and at the expense of Lessor and the rent, until such repairs are made, shall be apportioned according to the part of the Demised Premises which is usable by Lessee. Lessor shall not be liable for any inconvenience or annoyance to Lessee resulting from such damage or the repair thereof, and shall not be liable for any delay in restoring the Demised Premises. If the Demised Premises are partially damaged or partially destroyed as a result of the wrongful or negligent act of Lessee or any person on the Demised Premises with Lessee's consent, there shall be no apportionment or abatement of rent.

FIFTH:  EVENTS OF DEFAULT.  Lessee shall be in default under this Lease (a) if rent or additional rent is not paid within five (5) days after the date due; or (b) if Lessee fails to cure a default in the performance of any other term or covenant of the Lease within twenty (20) days after written notice thereof from Lessor, or if default cannot be completely cured in such time, if Lessee shall not promptly proceed to cure such default within said twenty (20) days; or (c) if a petition in bankruptcy shall be filed by Lessee or if Lessee shall make a general assignment for the benefit of creditors; or (d) if a petition in bankruptcy shall be filed against Lessee and such proceeding is not vacated within twenty (20) days; or (e) if the Demised Premises become and remain vacant for a period of thirty (30) days; or (f) if the Demised Premises are used for some purpose other than the authorized use; (g) if the Lease is mortgaged or assigned without the written consent of Lessor; or (h) if any portion of the Demised Premises is sublet without the written consent of Lessor.

SIXTH:  REMEDIES UPON DEFAULT.  In the event Lessee defaults under this Lease and fails to cure the same after the expiration of any notice and cure period provided herein, then Lessor may, at any time thereafter without notice or demand and without limiting Lessor in the exercise of any right or remedy which Lessor may have by reason of such default, resort to any of the following remedies:

A.            Declare all rent (including any additional rent due hereunder) for the remainder of the Lease, or part thereof, due in full and file an action to recover said rent.

B.            Immediately re-enter the Demised Premises and remove all persons and property therefrom and store such property in a public warehouse or elsewhere at the cost of, and for the account of, Lessee.  In the event of re-entry, Lessor shall not be guilty of trespass or incur any liability for any loss or damage incurred by Lessee occasioned thereby.   If Lessor elects to re-enter, as herein provided, or should it take possession pursuant to legal proceedings, Lessor may either (i) terminate this Lease, or (ii) without terminating this Lease, re­ let the Demised Premises or any part of the same for such term or terms (which may be for a term extending beyond the term of this Lease) and at such rent or rents and on such other terms and conditions as Lessor, in its sole and absolute discretion, may deem advisable, with the right to make alterations and repairs to the Demised Premises at the sole expense of Lessee.  On each such re-letting:

(1)            Lessee shall be immediately liable to pay to Lessor, in addition to any indebtedness other than rent due under this Lease, the expenses of such re-letting and repairs (except ordinary wear and tear), incurred by Lessor, and the amount, if any, by which the rent reserved in this Lease for the period of such re-letting (up to but not beyond the term of this Lease) exceeds the amount agreed to be paid as rent for the Demised Premises as a result of such re-letting; or

(2)            At the option of Lessor, rents received by such Lessor from such re-letting shall be applied, first, to the payment of any expenses of such re-letting and repairs; then, to the payment of rent due and unpaid hereunder; and the residue, if any, shall be held by Lessor and applied in payment of rent as the same becomes due and payable under this Lease.

If Lessee has been credited with any rent to be received by such re-letting pursuant to subparagraph (1) above, and such rent shall not be promptly paid to Lessor by the new tenant, or if such rentals received from such re-letting under above subparagraph (2) above during any

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month is less than that to be paid during that month by Lessee hereunder, Lessee shall pay any such deficiency to Lessor. Such deficiency shall be calculated and paid monthly. No such re­ entry or taking possession of the Demised Premises by Lessor shall be construed as an election on the part of Lessor to terminate this Lease unless a written notice of such intention is given to Lessee or unless the termination of the Lease is decreed by a court of competent jurisdiction.

C.            Notwithstanding any election by Lessor to re-let the Demised Premises without terminating this Lease, Lessor may at any time thereafter elect to terminate this Lease for such previous default. If Lessor terminates this Lease at any time for any default hereunder, then, in addition to any other remedy it may have, Lessor may recover from Lessee all damages incurred by reason of such breach, including the cost of recovering the Demised Premises, and including the worth at the time of such termination of the excess, if any, of the amount of rent and charges equivalent to rent reserved in this Lease for the remainder of the stated term over the then reasonable rental value of the premises for the remainder of the stated term, all of which amounts shall be immediately due and payable from Lessee to Lessor.

The rights and remedies granted herein to Lessor are distinct, separate and cumulative remedies, and the exercise of any remedy or remedies shall not be deemed to bar Lessor from exercising any or all of the others. Any failure on the part of Lessor to exercise promptly any such remedies or rights granted hereunder shall not operate to forfeit any other of said remedies or rights.

In the event of a proceeding involving Lessee under the Bankruptcy Code, 11 U.S.C. §101 et seq., if the Lease is assumed by Lessee's trustee in bankruptcy (after he has cured all existing defaults, compensated Lessor for any loss resulting therefrom and provided adequate assurance of future performance), then the Lease may not be assigned by the trustee to a third party, unless such party (a) executes and delivers to Lessor an agreement in recordable form whereby such party assumes and agrees with Lessor to discharge all obligations of Lessee under the Lease, (b) has a net worth of operating experience at least comparable to that possessed by Lessee, as of the time of execution of the Lease; and (c) grants to Lessor, to secure the performance of such party's obligations under the Lease, a security interest in such party's merchandise, inventory, personal property, fixtures, furnishings, and accounts receivable (and in the proceeds of all of the foregoing) with respect to its operations in the Demised Premises, and in connection therewith, such party shall execute such security agreements, financing statements and other documents (the forms of which are to be prepared by Lessor) as are necessary to perfect such lien.

SEVENTH:  PAYMENT OF UTILITIES AND RELATED EXPENSES.  Lessee agrees to pay all charges for telephone, water, gas, electricity and all other utilities consumed on the Demised Premises by Lessee.  Any interruption or failure of utilities service due to causes beyond Lessor's control shall not entitle Lessee to any allowance or reduction of rent or any other form of damages as against Lessor, except to the extent caused by Lessor's or Lessor's agent's, employee's or contractor's negligence or intentional misconduct.

EIGHTH:  Deleted.

NINTH:  RIGHT OF ENTRY.  Lessor, or any of his agents, shall have the right to enter the Demised Premises during all reasonable hours but upon no less than twenty-four (24) hours' notice, to examine the same to make such repairs, additions or alterations as may be deemed necessary for the safety, comfort, or preservation thereof, or of said building, or to exhibit said Demised Premises.  The right of entry shall likewise exist for the purpose of removing placards, signs, fixtures, alterations, or additions, which do not conform to this agreement, or to the rules and regulations of the building.

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TENTH:  MAINTENANCE OF DEMISED PREMISES.  Lessee hereby accepts the Demised Premises in the condition which exists at the commencement of this lease and agrees to maintain all of the Demised Premises (including all air conditioning, heating, plumbing, sewer (or septic tank), water (or well), electrical and mechanical equipment and fixtures serving them same located thereon and therein) at its own expense in good working order and condition, provided that Lessor will be responsible for any air-conditioning repairs over $250.00.  Lessee shall repair immediately upon demand, any damage to water apparatus, or any fixture, appliances or appurtenances of said Demised Premises, or of the building, caused by any act or neglect of Lessee, or of any person or persons in the employ or under the control of Lessee. Lessor shall be responsible only to repair structural damage to the Demises Premises and the common areas, provided however, any structural repairs necessitated by the fault or negligence of Lessee, its agents, employees or invitees shall be repaired at the sole expense of Lessee.

ELEVENTH:  DISCLAIMER OF LIABILITY.  It is expressly agreed and understood by and between the parties to this agreement, that the Lessor shall not be liable for any damage or injury by water, which may be sustained by Lessee or for any other damage or injury resulting from the carelessness, negligence, or improper conduct on the part of any other lessee, or its agents or employees, or by reason of the breakage, leakage, or obstruction of the water, sewer or soil pipes, or other leakage in or about the said building.

TWELFTH:  INSOLVENCY OR BANKRUPTCY.  In the event of a proceeding involving Lessee under the Bankruptcy Code, 11 U.S.C. §101 et seq., if the Lease is assumed by Lessee's trustee in bankruptcy (after he has cured all existing defaults, compensated Lessor for any loss resulting therefrom and provided adequate assurance of future performance), then the Lease may not be assigned by the trustee to a third party, unless such party (a) executes and delivers to Lessor an agreement in recordable form whereby such party assumes and agrees with Lessor to discharge all obligations of Lessee under the Lease, (b) has a net worth of operating experience at least comparable to that possessed by Lessee and any guarantor hereof as of the time of execution of the Lease; and (c) grants to Lessor, to secure the performance of such party's obligations under the Lease, a security interest in such party's merchandise, inventory, personal property, fixtures, furnishings, and accounts receivable (and in the proceeds of all of the foregoing) with respect to its operations in the Demised Premises, and in connection therewith, such party shall execute such security agreements, financing statements and other documents (the forms of which are to be prepared by Lessor) as are necessary to perfect such lien.

THIRTEENTH:  BINDING EFFECT/ORAL AGREEMENTS.  This Lease shall bind Lessor and its assigns or successors, as well as the heirs, assigns, administrators, legal representatives, executors or successors of Lessee.  Any amendment or modification of this Lease shall be in writing and executed by all parties hereto.

FOURTEENTH:  TIME OF THE ESSENCE.  It is understood and agreed between the parties hereto that time is of the essence of this Lease as to all terms and conditions contained herein.

FIFTEENTH:  NOTICE.  It is understood and agreed between the parties hereto that written notice mailed (certified - return receipt requested) or delivered by hand to the Demised Premises to the attention of John Morris, who shall act an agent for Lessee, shall constitute sufficient notice to Lessee.  Written notice mailed (certified - return receipt requested) to Lessor at 801 Maplewood Drive, Jupiter, Florida 33458 shall constitute sufficient notice to Lessor, to comply with the terms of this Lease.

SIXTEENTH:  WORK PERFORMED FOR LESSEE.  It is understood and agreed between the parties hereto that any charges against Lessee by Lessor for services or for work done on the Demised Premises by order of Lessee or otherwise accruing under this Lease shall be considered as rent due and shall be included in any lien for rent due and unpaid.

SEVENTEENTH:  APPROVAL OF SIGNS.  Any signs or advertising to be installed and displayed by Lessee, including awnings, on or in connection with the Demised Premises shall be first submitted to Lessor for approval before installation, which approval may be withheld in Lessor's sole and absolute discretion.  Any signs or advertising approved by Lessor shall be maintained by Lessee in good condition during the term of this Lease.  Lessee will be permitted to erect any sign approved by Lessor on the sign monument located on the easterly boundary of the property; however, Lessee shall be responsible to pay all expenses incurred by Lessee in the installation of the same.

EIGHTEENTH:  Deleted.

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NINETEENTH:  ATTORNEY'S FEES AND VENUE.  In the event of any litigation whatsoever arising under or out of this lease, the parties hereto agree that the venue for same shall be in a court of competent jurisdiction in Palm  Beach County, Florida, and the parties further agree that the laws of the State of Florida shall govern the construction and enforcement of this Lease.  Notwithstanding anything else herein to the contrary, Lessee shall pay to Lessor, on demand, such expenses as Lessor may incur, including without limitation, court costs, attorney's fees and disbursements in enforcing the performance of any obligation of lessee under this Lease, whether suit is filed or not and, in the event of litigation, Lessee shall be responsible for all such expenses, both at the trial and appellate levels.  Lessor and Lessee hereby waive trial by jury in any action, proceeding or counter-claim brought by either of the parties hereto against the other on any matters arising out of, or in any way connected with, this lease, the relationship of Lessor and Lessee, Lessee's use or occupancy of the Demised Premises and any emergency or other statutory remedy.  Lessee further agrees that it shall not interpose any counter-claim(s)  in a summary proceeding or other possessory action seeking the eviction of the Tenant from (i) asserting any defense(s) which it may have to eviction in the summary proceeding or possessory action, or (ii) filing an action for damages either in a separate proceeding, or as a counterclaim to any action seeking damages filed by Landlord, as long as the same is not consolidated with, or asserted as a defense to, the summary proceeding or possessory action.

TWENTIETH:  SECURITY DEPOSIT.  Upon the execution of this Lease, Lessee has delivered to Lessor a security deposit in the sum of $1,000.00, which deposit may be commingled with the funds of Lessor.  The security deposit will not bear interest and Lessor is not obligated to account for, or pay to, Lessee interest on the security deposit.  The security deposit made by Lessee shall be held by Lessor as security for the faithful performance by Lessee of all of Lessee's obligations under this lease.   If any rent or other charges shall be overdue and unpaid after the expiration of notice and cure periods, or if Lessee shall fail to observe or perform any of his obligations under this lease after the expiration of notice and cure periods, then Lessor may, at his option and without prejudice to any other remedy which Lessor may have on account thereof, apply the entire security deposit, or so much thereof as may be necessary to compensate Lessor with regard to the payment of rent or other damages sustained by Lessor due to such breach on the part of Lessee; and Lessee shall forthwith upon demand restore said security deposit to the original sum deposited.  Should Lessee comply with all of its obligations under this lease and promptly pay all of the rent and other charges due, the security deposit shall be returned in full to Lessee at the end of the term after delivery of the possession of the Demised Premises to Lessor in accordance with the terms of this lease.

TWENTY-FIRST:  DISCLAIMER OF MECHANICS LIEN.  Nothing in this lease shall be deemed, construed, or interpreted to imply any consent or agreement on the part of Lessor to subject Lessor's interest or estate to any liability under any mechanic's lien or other lien law for improvements made by, or on behalf of, Lessee.  If any mechanic's lien or other lien is claimed or filed against the Demised Premises, or any part thereof, for any work, labor, services or materials claimed to have been performed or furnished for or on behalf of Lessee or anyone holding any part of the Demised Premises through or under Lessee, Lessee shall cause the same to be cancelled and discharged of record by payment, bond or court order within twenty days after notice by Lessor to Lessee.  Lessee hereby indemnifies and holds Lessor harmless from any claim, loss, liability or damage suffered by Lessor as a result of any such mechanic's lien or equitable lien.  Lessee shall execute any Memorandum of Lease prepared by Lessor containing a confirmation that the interest of Lessor shall not be subject to liens for improvements made by Lessee to the Demised Premises.

TWENTY-SECOND:  INSURANCE.  Lessee shall maintain commercial general public liability insurance for the Demised Premises and the conduct or operation of business therein with Lessor designated as an additional named insured, which insurance shall have limits no less than $1,000,000.00 for bodily injury or death to any one person and $500,000.00 for property damage, including water damage.  Lessee shall also maintain fire and extended coverage insurance with regard to Lessee's stock and trade, fixtures, furniture, furnishings, equipment, signs and all other property of Lessee on the Demised Premises in the amount of their full insurable value.  Lessee shall procure and pay the premiums for such insurance prior to its occupancy and shall deliver to Lessor copies of such policies to confirm the insurance coverage.  Such policies shall be renewed at least thirty (30) days before the expiration of the policy term and shall contain a provision whereby the same cannot be cancelled unless Lessor is given at least ten (10) days prior written notice of such cancellation.

TWENTY-THIRD:  SUBORDINATION.  This Lease is subject and subordinate to all present and future mortgages and other encumbrances affecting the real property of which the

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Demised Premises form a part, and to all renewals, modifications, consolidations, replacements and extensions thereof.  Lessee agrees to execute at no expense to Lessor any instrument which may be deemed necessary by Lessor to further effect the subordination of the Lease herein provided.

TWENTY-FOURTH:  WAIVER OR CONSENT.  No consent, approval or waiver, whether expressed or implied, by Lessor of any breach of any covenant, agreement or obligation of Lessee hereunder shall be construed as a consent or waiver to, or of, any other breach of the same or any other covenant, agreement or obligation herein.  All typewritten or handwritten provisions of this lease shall prevail over and control any printed portions inconsistent herewith.

TWENTY-FIFTH:  WAIVER OF SUBROGATION.  In case of damage or destruction to the Demised Premises, or any contents thereof, Lessee shall look first to any insurance in his favor before making any claim against Lessor; and Lessee (i) hereby releases Lessor, his agents, employees and invitees for loss or damage covered under such policies, and (ii) shall immediately notify its insurance carrier that the foregoing waiver of subrogation is contained in this Lease, and shall obtain for each policy of such insurance, a waiver of subrogation endorsement permitting waiver of any claim against Lessor for loss or damage within the scope of the insurance.

TWENTY-SIXTH:  CONDEMNATION.  If the whole or any substantial part of the Demised Premises shall be condemned by eminent domain for any public or quasi-public purpose, this Lease shall terminate on the date of the vesting of title, and Lessee shall have no claim against Lessor for the value of any unexpired portion of the term of this Lease, nor shall Lessee be entitled to any part of the condemnation award.  If less than a substantial part of the Demised Premises is condemned, this Lease shall not terminate, but rent shall abate in proportion to the portion of the Demised Premises condemned, unless Lessee is compensated for such in any condemnation award or settlement received by him.

TWENTY-SEVENTH:  INDEMNITY.  In consideration of the lease of the premises to the Lessee, Lessee indemnifies and shall hold harmless Lessor from all losses, damages, liabilities, expenses or claims for any injuries or damages, including bodily injury or death, to any parties whatsoever, as well as any injuries or damages to the personal property of any such parties, which injuries or damages arise from the use or occupancy of the Demised Premises by Lessee or are caused by the acts, omissions, neglect, or fault of Lessee or Lessor, their agents, servants, employees, licensees, customers or invitees.  Furthermore, Lessor shall not be liable to Lessee for any damage, loss or injury to the person or property of Lessee which may be caused by the acts, neglect, omission or fault of any person, firm or corporation, specifically including that of Lessor.

TWENTY-EIGHTH:  END OF TERM/ABANDONED PROPERTY.  At the end of the initial term, or the renewal term if elected by Lessee, Lessee shall vacate and surrender the Demised Premises to Lessor, broom clean, and in as good condition as the Demised Premises were at the beginning of the term, ordinary wear and tear, and damage by fire and the elements excepted, and Lessee shall remove all of Lessee's property.  All installations, property, and additions required to be removed by Lessee at the end of the term which remain in the Demised Premises after Lessee has vacated shall be considered abandoned by Lessee and, at the option of the Lessor, may either be retained as Lessor's property or may be removed by Lessor at Lessee's expense.

TWENTY-NINTH:  HOLDING OVER/DOUBLE RENT.  If Lessee holds over and continues in possession of the Demised Premises, or any part thereof, after the expiration or termination of the Lease without Lessor's permission, Lessor may recover double the amount of the rent due for each day Lessee holds over and refuses to surrender possession.  Such daily rent shall be computed by dividing the rent for the last month of the Lease by fifteen.

THIRTIETH:  BROKER'S COMMISSION.  Lessee represents to Lessor that Lessee has not dealt with any broker in connection with this transaction.   Lessee hereby indemnifies and holds Lessor harmless from and against any damages, loss, claim or liability suffered by Lessor (including attorney's fees incurred in the defense of any such claim and the enforcement of this indemnity) as a result of any claim made by any broker arising out of any contact between Lessee and such broker with regard to the Demised Premises.

THIRTY-FIRST:  HAZARDOUS MATERIALS.  For purposes of this Thirty-Third Paragraph, the following definitions shall apply:

-    "Hazardous Materials" shall mean any flammable explosives, radioactive

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materials, hazardous wastes, toxic substances or related materials and shall also mean, but shall not be limited to, substances defined as "hazardous substances" in the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. Sections 9601-9657; the Hazardous Materials Transportation Act of 1975, 49 U.S.C. Sections 1801-1812; the Resource Conservation and Recovery Act of 1976, 42 U.S.C. Sections 6901- 6987; and those substances defined as "hazardous substance" in the Florida Hazardous Substances Law, Sections 501.061-501.121,  Florida Statutes.

-    "Hazardous Materials Laws" shall mean any Federal, State or local laws, ordinances or regulations relating to Hazardous Materials.

-    "Hazardous Materials Claims" shall mean: (i) any and all enforcement, cleanup, remedial, removal or other governmental or regulatory actions instituted, completed or threatened pursuant to Hazardous Materials Laws; (ii) all claims made or threatened by any third party against the Lessee or the Demised Premises relating to damage, contribution, cost recovery compensation, loss or injury resulting from any Hazardous Materials.

Lessee hereby covenants with Lessor:

(A)            To notify Lessor in writing of the nature of any Hazardous Materials Claims as hereinafter defined, immediately upon their occurrence.

(B)            To indemnify and hold harmless Lessor, its employees and agents from and against any and all claims, damages and liabilities arising in connection with the presence, use, storage, disposal or transport of any Hazardous Materials on, under, from or about the Demised Premises including, without limitation: (i) all foreseeable and all unforeseeable consequential damages directly or indirectly arising out of the use, generation, storage or disposal of Hazardous Materials by Lessee; and (ii) all costs of any required or necessary repair, cleanup or detoxification and the preparation of any closure or other required plans, to the full extent that such action is attributable, directly or indirectly, to the presence, use, generation, storage, release, threatened release or disposal of Hazardous Materials by any person on the Demised Premises.  Lessee's obligation pursuant to the foregoing indemnity shall survive the term of this Lease.

(C)            To keep and maintain the Demised Premises in compliance with (and not cause or permit the Demised Premises to be in violation of) any Federal, State or local laws, ordinances or regulations relating to industrial hygiene or to environmental conditions on, under or about the Demised Premises including, but not limited to, soil and underground conditions.

(D)            Not to use, generate manufacture, store or dispose of Hazardous Materials (as hereinafter set out) on the Demised Premises; provided however, Lessee may store and use (i) Hazardous Materials to the extent that they are necessary for the maintenance of the Demised Premises, and (ii) those substances described in Exhibit A attached hereto in quantities substantially similar to those set forth in Exhibit A, provided that the storage and use described in subparagraphs (i) and (ii) hereof shall be consistent with, and in compliance with, all applicable federal, state and local laws.

(E)            Lessor shall have the right to join and participate in, as a party if it so elects, any legal proceedings or actions initiated in connection with any Hazardous Materials Claims. Lessor's reasonable attorney's fees and costs in connection therewith shall be reimbursed by Lessee upon demand. All such fees and costs shall be added to the indebtedness under this Lease and shall be secured thereby.

(F)          Lessee shall, at any time and from time to time, within thirty (30) days after notice and written demand by Lessor, deliver to Lessor a written environmental evaluation of the Demised Premises, which evaluation shall address matters as to whether the Demised Premises, or any part thereof, has or is being used for the use, handling, storage, transportation or disposal of Hazardous Materials and if so, as to whether such use, handling, storage, transportation or disposal conforms to the requirements of Hazardous Materials Laws. The evaluation shall be performed by an independent, recognized environmental consulting firm of duly licensed registered engineers.

IN WITNESS WHEREOF, the parties hereto have hereunto executed this instrument for the purpose herein expressed, the day and year above written.

Signed, sealed and delivered

in the presence of:

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Lessor:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
/s/ John E. Morris

	
 

	
As to Lessor

	
 

	
 

	
John E. Morris, Managing Member

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
As to Lessor

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Lessee (if corporate):

	
 

	
 

	
 

	
 

	
Dyadic International (USA), Inc.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
/s/ Mark Emalfarb

	
 

	
As to Lessor

	
 

	
 

	
Mark Emalfarb, President

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(Corporate Seal)

	
 

	
As to Lessor

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

Page 8

LEASE AGREEMENT

 

This LEASE AGREEMENT made and entered into on the 27th day of June, 2005, by and between JOHN E, MORRIS, as trustee of the John E, Morris Revocable Trust u/a/d 6/11/96, as amended and restated 10/5/99 or assing to newly formed LLC hereinafter referred to as lessor, party of the first part, and Dyadic International (USA), Inc., a Floride Corporation hereinafter referred to as Lessee, party of the second part:

 

WITNESSETH:

 

That Lessor does this day lease unto Lessee, and Lessee, does hereby fire and take under this Lease, that portion of the premises located at 500 Commerce Way, Jupiter, Floride, Known as hereinafter referred to as the "Demised Premises"). In addition to the Demised Promises, Lessee shall be entitled to the non-exclusive use of the parking lot (for purposes of ingress, egress and parking only) and the exterior sidewalks to and from the Demised Premises (for pedestrian Ingress and egress only).

 

The Demised Precises shall be used and occupied by Lessee as Dyadic International (USA), lnc., and for no other purposes or uses whatsoever. Leasee specifically covenants and agrees that it will not use, or permit to be used, any part of the Demised Premises as anything other than Dyadic International (USA), Inc. The term of the lease shall be one (1) year, beginning on the 1st day of July, 2005 and ending on the 30th day of June, 2003 at 12:00 A.M. (midnight), for the total sum of Eighteen Thousand Dollar ($18,000.00) ("Total sum Due"), plus sales tax (presently at a rate of 6 1/2%). Provided that Lessee is not in default hereunder beyond the expiration of all applicable notice and cure periods, Lessee may pay the Total Sum Due in installemnets of $1,500.00 per month (plus sales tax). All payments of rent shall be made to Lessor in advance without demand on the 1st day of such month at 801 Maplewood Drive, Suite 17, Jupiter, Floride 33458,or at such other place and to such other person, as Lessor may designate in writing. All rent shall ba paid to Lessor without demand, set-off or any deduction whatsoever. If any payment is not received within ten (10) days after the date due, a late charge of five (5%) per cent of the total payment shall be due Lessor as additional rent. Upon the execution of this Lease, Lessee shall pay to Lessor the sum of $3,200.00, representing first and last months' rent (plus sales tax) and a security deposit in the sum of $1,000,00. Provided that Lessee is not in default hereunder, Lessee shall have the option to extend the lease for two (2) additional one-year terms (Lease Options); For the first such additional one-year term, Lessee shall pay a total sum of $13,200 plus sales tax, in monthly installments of $1,600 plus sales tax. For the second such additional one-year term, Lessee shall pay a total sum of $20,400 plus sales tax, in monthly installments of $1,700 plus sales tax. Each Lease Option shall be exercised automatically unless cancelled by the Lesses upon a thirty (30) day written notice prior to the expiration of the respective one-year term.

 

Lessor and Lessee agree to the following express stipulations and conditions:

 

FIRST; ASSIGNMENT, ENCUMBRANCE ANE IMPROVEMENTS. Lessee shall not assign this lease, nor sublet the Demised Premises or any part thereof nor use the same, or any part thereof, nor permit the same, or any part there of, to be used for any other purpose than as above stipulated, without the prior written consent of Lessor, which consent may be arbitrarily withheld by Lessor.

 

SECOND; PERSONAL PRPPERTY. All personal property placed or moved on the Demised Premises above described shall be at the risk of Lessee or the owner thereof, regardless of the cause of said damage, including butat limited to, damage arising from the bursting or leaking of water pipes or from any act of negligence of any co-Lessee, other occupants of the building or of any other person whomsoever.

 

THIRD; COMPLIANCE WITH LAW- Lessee shall promptly execute and comply with all statutes, ordinances, rules, orders, regulations and requirements of the Federal, State and City Government and of any and all their Departments and bureaus applicable to said Demised Premises, for the correction, prevention, and abatement of nuisances or other grievances, in, upon, or connected with said Demised Premises during said term; and shall also promptly comply with and execute all rules, orders and regulations of the Southeastern Underwriters Association forthe prevention of fires, at Lessee's own cost and expense.

 

FOURTH: DEMISED PREMISES RENDERED UNTENANTABLE BY CASUALTY. If the Demised Premises are damaged or destroyed so that the Demised Promises are rendered wholly untenantable, rent shall be proportionately paid upto the time of the casualty and there forth shall cease until the date when the Demised Premises have been repaired or restored by Lessor to the condition existing just prior to the date of casualty; provided, however,

that in the event the Demised Premises have been rendered wholly untenantable, and if Lessor will be unable to restore the Demised Premises within sixty (60) days from the date of the casualty, Lessor or Lessee shall have the right to terminate the term of the Lease by giving notice to the other of its exercise of such right at any time within thirty (30) days after the occurrence of such damage or destruction, if this notice is given, the term of the Lease shall terminate on the date specified in the notice, (which shall be not more than fifteen days after givingof such notice), as fully and completely as if such date were the date set forth in the Lease. If Lessee exercises the option to terminate the Lease, Lessee must vacate the Demised Premisesno later than three (3) days after the delivery of the notice of termination. If neither party has given the notice of termination as herein provided, Lessor shall proceed to repair the Demised Premises, and the Lease shall not terminate.

 

If the Demised Premises shall be partially damaged or partially destroyed, the damages shall be repaired by and at the expense of Lessor and the rent, until such repairs are made, shall be apportioned according to the part of the Demised Premises which is usable by Lessee. Lessor shall not be liable for any inconvenience or annoyance to Lessee resulting from such damage or the repair thereof, and shall not be liable for any delay in restoring the Demised Premises. If the Demised Premises are partially damaged or partially destroyed as a result of the wrongfulor negligent act of Lessee or any person on the Demised Premises with Lessee's consent, there shall be no apportionment or abatement of rent.

 

FIFTH: EVENTS OP DEFAULT. Lessee shall be in default under this Lease (a) if rent or additional rent is not paid within five (5) days after the date due; or (b) If Lessee falls to cure a default in the performance of any other term or covenant of the Lease within twenty (20) days after written notice thereof from Lessor, or if default cannot be completely cured in such time, if Leasee shall not promptly proceed to cure such default within said twenty (20) days; or (c) if a petition in bankruptcy shall be filed by Lessee or if Lessee shall make a general assignment for the benefit of creditors; or (d) If a petition in bankruptcy shall be filed against Lessee and such proceeding is not vacated within twenty (20) days; or (e) if the Demised Premises become and remain vacant for a period of thirty (30) days; or (f) if the Demised Premises are used for some purpose other than the authorized use; (g) if the Lease is mortgaged or assigned without the written consent of Lessor; or (h) if any portion of the Demised Premises is sublet without the writen consent of Lessor.

 

SIXTH: REMEDIES UPON DEFAULT. In the event Lessee defaults under this Lease and falls to cure the same after the expiration of any notice and cure period provided herein, then Lessor may, at any time thereafter without notice or demand and without limiting Lessor in the exercise of any right or remedy which Lessor may have by reason of such default, resort to any of the following remedies:

 

A.     Declare all rent (including any additional rent due hereunder) for the remainder of the Lease, or part thereof, due in full and file an action to recover said rent

 

B.      Immediately re-enter the Demised Premises and remove all persons and property therefrom and store such property in a public warehouse or elsewhere at the cost of, and for the account of, Lessee, In the event of re-entry, Lessor shall not be guilty of trespass or incur any liability for any loss or damage incurred by Lessee occasioned thereby. If Lessor elects to re-enter, as herein provided, or should it take possession pursuant to legal proceedings, Lessor may either (1) terminate this Lease, or (11) without terminating this Lease, re­-let the Demised Premises or any part of the same for such term or terms (which may be for a term extending beyond the term of this Lease) and at such rent or rents and on such other terms and conditions as Lessor, in its sole and absolute discretion, may deem advisable, with the right to make alterations and repairs to the Demised Premises at the sole expense of Lessee. On each such re-letting;

 

	 	
(1)

	
Lessee shall be immediately liable to pay to Lessor, In addition to any indebtedness other than rent due under this Lease, the expenses of such re-letting and repairs (except ordinary wear and tear), Incurred by Lessor, and the amount, if any, by which the rent reserved in this Lease for the period of such re-letting (up to but not beyond the term of this Lease) exceeds the amount agreed to be paid as rent for the Demised Premises as a result of such re-letting; or

 

	 	
(2)

	
At the option of Lessor, rents received by such Lessor from such re-letting shall be applied, first, to the payment of any expenses of such re-letting and repairs; then, to the payment of rent due and unpaid hereunder; and the residue, if any, shall be held by Lessor and applied in payment of rent as the same becomes due and payable under this Lease.

Page 2

If Lessee has been credited with any rent to be received by such re-letting pursuant to subparagraph (1) above, and such rent shall not be promptly paid to Lessor by the new tenant, or if such rentals received from such re-letting under above subparagraph (2) above during any month is less than that to be paid during that month by Lessee hereunder, Lessee shall pay any such deficiency to Lessor. Such deficiency shall be calculated and paid monthly. No such re-­entry or taking possession of the Demised Premises by Lessor shall be construed as an election on the part of Lessor to terminate this Lease unless a written notice of such intention is given to Lessee or unless the termination of the Lease is decreed by a court of competent jurisdiction,

 

C.      Notwithstanding any election by Lessor to re-let the Demised Premises without terminating this Lease, Lessor may at any time thereafter elect to terminate this Lease for such previous default. If Lessor terminates this Lease at any time for any default hereunder, then, in addition to any other remedy it may have, Lessor may recover from Lessee all damages Incurred by reason of such breach, including the cost of recovering the Demised Premises, and including the worth at the time of such termination of the excess, if any, of the amount of rent and charges equivalent to rent reserved in this Lease for the remainder of the stated term over the then reasonable rental value of the premises for the remainder of the stated term, all of which amounts shall be immediately due and payable from Lessee to Lessor.

 

The rights and remedies granted herein to Lessor are distinct, separate and cumulative remedies, and the exercise of any remedy or remedies shall not be deemed to bar Lessor from exercising any or all of the others. Any failure on the part of Lessor to exercise promptly any such remedies or rights granted hereunder shall not operate to forfeit any other of said remedies or rights.

 

In the event of a proceeding involving Lessee under the Bankruptcy Code, 11 U.S.C. §101 et seq., if the Lease is assumed by Lessee's trustee in bankruptcy (after he has cured all existing defaults, compensated Lessor for any loss resulting therefrom and provided adequate assurance of future performance), then the Lease may not be assigned by the trustee to a third party, unless such parly (a) executes and delivers to Lessor an agreement in recordable form whereby such party assumes and agrees with Lessor to discharge all obligations of Lessee under the Lease, (b) has a net worth of operating experience at least comparable to that possessed by Lessee, as of the time of execution of the Lease; and (c) grants to Lessor, to secure the performance of such party's obligations' under the Lease, a security interest in such party's merchandise, inventory, personal property, fixtures, furnishings, and accounts receivable (and in the proceeds of all of the foregoing) with respect to its operations in the Demised Premises, and In connection therewith, such party shall execute such security agreements, financing statements and other documents (the forms of which are to be prepared by Lessor) as are necessary to perfect such lien.

 

seventh: payment OF utilities and related expenses. Lessee agrees to pay all charges for telephone, water, gas, electricity and all other utilities consumed on the Demised Premises by Lessee. Any Interruption or failure of utilities service due to causes beyond Lessor's control shall not entitle Lessee to any allowance or reduction of rent or any other form of damages as against Lessor, except to the extent caused by Lessor's or Lessor's agent's, employee's or contractor's negligence or intentional misconduct.

 

EIGHTH: Deleted.

 

NINTH: RIGHT OF ENTRY. Lessor, or any of his agents, shall have the right to enter the Demised Premises during all reasonable hours but upon no less than twenty-four (24) hours' notice, to examine the same to make such repairs, additions or alterations as may be deemed necessary for the safety, comfort, or preservation thereof, or of said building, or to exhibit said Demised Premises. The right of entry shall likewise exist for the purpose of removing placards, signs, fixtures, alterations, or additions, which do not conform to this agreement, or to the rules and regulations of the building.

 

tenth; maintenance of demised premises. Lessee hereby accepts the Demised Premises in the condition which exists at the commencement of this lease and agrees to maintain all of the Demised Premises (including all air conditioning, heating, plumbing, sewer (or septic tank), water (or well), electrical and mechanical equipment and fixtures serving them same located thereon and therein) at its own expense in good working order and condition, provided that Lessor will be responsible for any air-conditioning repairs over $250.00. Lessee shall repair immediately upon demand, any damage to water apparatus, or any fixture, appliances or appurtenances of said Demised Premises, or of the building, caused by any act or neglect of Lessee, or of any person or persons in the employ or under the control of Lessee, Lessor shall be responsible only to repair structural damage to the Demises Premises and the

Page 3

common areas, provided however, any structural repairs necessitated by the fault or negilgence of Lessee, all agents, employees or invitees shall be repaired at the sole expense of Lessee.

 

ELEVENTH; DISCLAIMER OF LIABILITY. It is expressly agreed and understood by and between the parties to this agreement, that the Lessor shall not be liable for any damage or injury by water, which may be sustained by Leasee or for any other damage or injury resulting from the carelessness, negligence, or improper conduct on the part of any other lessee, or its agents or employees, or by reason of the breakage, leakage, or obstruction of the water, sewer or soil pipes, or other leakage in or about the said building.

 

TWELFTH: INSOLVENCY OR BANKRUPTCY. In the event of a proceeding involving Lessee under the Bankruptcy Code, 11 U.S.C. §101 et saq., if the Lease is assumed by Lessee's trustee in bankruptcy (after he has cured all existing defaults, compensated Lessor for any loss resulting therefrom and provided adequate assurance of future performance), then the Lease may not be assigned by the trustee to a third part; unless such party (a) executes and delivers to Lessor an agreement in recordable form Whereby such party assumes and agrees with Lessor to discharge all obligations of Lessee under the Lease, (b) has a net worth of operating experience at least comparable to that possessed by Lessee and any guarantor hereof as of the time of execution of the Lease; and (c) grants to Lessor, to secure the performance of such party's obligations under the Lease , a security interest in such party's merchandise,Inventory, personal property, fixtures, furnishings, and accounts receivable (and in the proceeds of all of the Foregoing) with respect to its operations in the Demised Premises, and in connection therewith, such party shall execute such security agreements, financing statements and other documents (the forms of which are to be prepared by Lessor) as are necessary to perfect such lien.

 

THIRTEENTH: BINDING EFFECTIONAL AGREEMENTS. This Lease shall bind Lessor and its assigns or successors, as well as the heirs, assigns, administrators, legal representatives, executors or successors of Lessee. Any amendment or modification of this Lease shall be in writing and executed by all parties hereto.

 

fourteenth: TIME OF THE ESSENCE. It is understood and agreed between the parties hereto that time is of the essence of this Lease is to all terms and conditions contained herein.

 

FIFTEENTH: NOTICE. It is understood and agreed between the parties hereto that written notice melted (certified - return receipt requested) or delivered by hand to the Demised Premises to the attention of John Morris, who shall act un agent for Lessee, shall constitute sufficient notice to Lessee. Written notice mailed (certified - return receipt requested) to Lessor at 801 Maplawood Drive, Jupiter, Florida 33456 shall constitute sufficient notice to Lessor, to comply with the terms of this Lease,

 

SIXTEENTH: WORK PERFORMED FOR LESSEE. It s understood and agreed between tha parties hereto that any charges against Leases by Lessor for serviced or for work done on the Demised Premises by order of Lessee otherwise accruing under this Lease shall be considered as rent due and shall be included in any lien for rent due and unpaid.

 

SEVENTEENTH: APPROVAL OF SIGNS. Any sings or advertising to be installed and displayed by Lessee, including awnings, on or in connection with the Demised Premises shall be first submitted to Lessor for approval before installation, which approval may be withheld in Lessor's sole and absolute discretion. Any signs or advertising approved by Lessor shall be maintained by Lessee in good condition during the term of this Lease. Lessee will be permitted to erect any sign approved by Lessor on the sign monument locatedon the easterly boundary of the property; however, Leasee shall be responsible to say all expenses incurred by Leasee in the I

installation of the same.

 

EIGHTEENTH: Deleted.

 

NINETEENTH: ATTORNEY'S FEES AND VALUE.In the event of any litigation whatsoever arising Under or out of this lease, the parties hereto agree that the venue for same shall be in a court of competent jurisdiction in Palm Beach County, Florida, and the parties further agree that the laws of the State of Florida shall govern the construction and enforcement of this Lease. Notwithstanding anything else herein to the contrary, lessee shall pay to Lessor, on demand, such expenses as Lessor may incur, inducing without limitation, court costs, attorney's fees and disbursements in enforcing the performance of any obligation of lessee under this Lease, whether suit is filed or not and, in the event of litigation, Lessee shall be responsible for all such expenses, both at the trial and appellate levels. Lessor and Lessee

Page 4

hereby waive trail by jury in any action, peoceeding of countor-claim brought bt either of the parties hereto against the other on any matters arising out of, or in any way connected with, this lease, the relationship of Lessor and Lessee, Lesses's use or occupancy of the Demised Premises and emergency or other statutory remedy. Lessee further agrees that it shall not interpse any counter-claim (a) in a summary proceeding or other possessory action seeking the eviction of the Tenant from (i) separating any defense(s) which it may have to eviction in the smmary proceeding or possessory action, or (ii) Filing an action for damages either in a separate proceeding, or an counter claim to any action seeking damages filed by Landlord, as long as the same is not consolidated with, or asserted as a defense to, the summary proceeding or possessory action.

 

TWENTIETH: SECURITY DEPOSIT. Upon the execution of this Lease, Lessee has delivered to Lessor a security deposit in the sum of $1,000.00, which deposit may be commingled with the funds of Lessor, The security deposite will not bear interest and Lessor is not obligated to account for, or pay to, Lessee interest on the security deposit. The security deposit made by Lessee shall be held by Lessor as security for the faithful performance by Losses of all of Lessee's obligations under this lease. Is any rent or other charges shall be overdue and unpaid after the expiration of notice and cure periods, or if Leasee shall fall to observe or perform any of his obligations under this lease after the expiration of notice and cure periods, than Lessor may, at his option and without prejudice to any other remedy which Lessor may have on account thereof, apply the entire security deposit, or so much thereof as may be necessary to compensate Lessor with regard to the payment of rent or other damages sustained by Lessor due to such breach on the part Lessor; and Lessee shall forthwith upon demand restore said security deposit to the original our deposited, should Lessee comply with all of its obligations under this lease and promptly pay all of the rent and other charges due, the security deposit shall be returned in full to Lessee at the end of the term after delivery of the possession of the Demised Premises to Lessor accordance with the terms of this lease,

 

TWENTY-FIRST: DISCLAIMER OF MECHANIC LIEN. Nothing in this lease shall be deemed, construed, or interpreted to imply any consent or agreement on the part of Lessor to subject Lessor's interest or estate to any liability under any mechanic's lien or other lien law for improvements made by, or on behalf of, Lessee. If any mechanic's lien or other lien is claimed or filed against the Demised Premises, or any part thereof, for any work, labor, services or materials claimed to have been performed or furnished for or on behalf or Lessee or anyone holding any part of the Demised Premises through or under Lessee, Lessee shall cause the same to be cancelled and discharged of record by payment, bond or court order within twenty (20) days after notice by Lessor to Lessee, Lessee hereby indemnifies and holds Lessor harmless from any claim, loss, liability or damage sufferred by Lessor as a result of any such mechanic's lien or equitable lien. Lessee shall execute any Memorandum of Lease prepared by Lessor containing a confirmation that the interest of Lessor shall not be subject to liens for improvements made by Lessor to the Demised Premise.

 

TWENTY-SECOND: INSURANCE. Lessee shall maintain commercial general public liability insurance for the Demised Premises and the conduct or operation of business therein with Lessor designated as an additional named insured, which insurance shall have limits no less than $1,000,000,00 for bodily injury or death to any one person and $500,000,00 for property damage, including water damage. Lessee shall also maintain fire and extended coverage insurance with regard to Lessee's stock and trada, fixtures, furniture, furnishings, equipment, signs and all other property of Lessee on tha Demised Premises in the amount of their full insurable value. Lessee shall procure and pay the premiums for such insurance prior to its occupancy and shall deliver to Lessor copies of such policies to confirm the insurance coverage. Such policies shall be renewed at least thirty (30) days before the expiration of the policy term and shall contain a provision whereby the same cannot be cancelled unless Lessor is given at least ten (10) days prior written notice of such cancellation.

 

TWENTY-THIRD: SUBORDINATION. This Lease is subject and subordinate to all present and future mortgages and other encumbrance affecting the real property of which the Demised Premises form a part, and to all renewals, mcdification, consolidations, replacements and extensions thereof, Lessee agrees to execute at expense to Lessor any instrument which may be deemed necessary by Lessor to further affect the subordination of the Lease herein provided.

 

TWENTY-FOURTH; WAIVER OR CONSENT. No consent, approval or waiver, whether expressed or implied, by Lessor of any breach of any covenant, agreement or obligation of Lessee hereunder shall be construed as a consent or waiver to, or of, any other breach of the same or any other covenant, agreement or obligation are in. All typewritten or handwritten provisions of this lease shall prevail over and control any printed portions inconsistent herewith.

Page 5

"Hazardous Materials Claims" shall mean: (i) any and all enforcement, cleanup, remedial, removal or other governmental or regulatory actions instituted, completed or threatened pursuant to Hazardous Materials Laws; (ii) all claims made or threatened by any third party against the Lessee or the Demised Promises islating to damage, contribution, cost recovery compensation, lose or injury resulting from any Hazardous Materials.

 

Lessee hereby covenants with Lessor.

 

(A)   To notify Lessor in writing of the nature of any Hazardous Materials Claims as hereinafter defined, immediately upon their occurrence.

 

(B)    To indemnify and hold harmless Lessor, its employees and agents from and against any and all claims, damages and liabilities arising in connection with the presence, use, storage, disposal or transport of any Hazardous Materials on, under, from or about the Demised Premises including, without limitation: (I) all foreseeable and all unforeseeable consequential damages directly or indirectly arising out of the use, generation, storage or disposal of Hazardous Materials by Lessee; and (II) all costs of any required or necessary repair, cleanup or detoxification and the preparation of any closure or other required plane, to the full extent that such action is attributable, directly or indirectly to the presence, use, generation, storage, release, threatened release or disposal of Hazardous Materials by any person on the Demised Premises. Leasee's obligation pursuant to the foregoing indemnity shall survive the term of this Lease.

 

(C)    To keep and maintain the Demised Premises in compliance with (and not causa or permit the Demised Premises to be in violation of) any Federal, State or local laws, ordinances or regulations relating to industrial hygiene or to environmental conditions on, under or about the Demised Premises including, but not not limits to, soil and underground conditions,

 

(D)    Not to use, generate manufacture, store or dispose of Hazardous Materials (as hereinafter set out) on the Demised Premises; provided however, Lessee may store and use (I) Hazardous Materials to the extent that they are necessary for the maintenance of the Demised Premises, and (II) those substances describe in Exhibit A attached hereto in quantities substantially similar to those set forth in Exhibit A, provided thai the storage and use describe in subparagraphs (I) and (II) hereof shall be consistent with, and in compliance with, all applicable federal, state and local laws,

 

(E)     Lessor shall have the right to join and participate in, as a party if it so electe, any legal proceedings or actions initiated in connection with any Hazardous Materials Claims. Lessor's reasonable attorney's fees and costs in connection therewith shall be reimbursed by Leasee upon demand. All such fees and costs shall be added to the indebtedness under this Lease and shall be secured thereby.

 

(F)     Lessee shall, at any time and from time to timo, within thirty (30) days after notice and written demand by Lessor, deliver to Lessor a written environmental evaluation of the Demised Premises, which evaluation shall address matters as to whether the Demised Premises, or any part thereof, has or is being used for the use, handling, storage, transportation or disposal of Hazardous Materials and if so, as to whether such use, handling, storage, transportation or disposal conforms to the requirements of Hazardous Materials Laws, The evaluation shall be performed by an independent, recognized environmental consulting firm of duly licensed registered engineers.

 

IN WITNESS WHEREOF, the parties hereto have hereunto executed this instrument for the purpose herein expressed, the day and year above- written.

 

Signed, sealed and delivered

in the presence of:

 

	 		Lessor
	 		_____________
	 		
	
 

	
By:

	
 

	
As to Lessor

	
 

	
 

	
 

	
 

	
 

			

	As to Lessor		
	 		
			Lessee (if corporate)
	 		
Dyadic International, Inc

	 		
	
Mark Emalfard

	
By:

	
Mark Emalfard

	
As to Lessor

	
 

	
 President

	
 

	
 

	
 

			
	as to Lessee		

Page 7

 

 

 

Page 8

LEASE AGREEMENT

THIS LEASE AGREEMENT,made and entered into on the 1st day of July, 2008, by and between 500 West Commerce Way LLC, hereinafter referred to as Lessor, party of the first part, and Dyadic International (USA), Inc., a Florida Corporation hereinafter referred to as Lessee, party of the second part:

W I T N E S S E T H:

That Lessor does this day lease unto Lessee, and Lessee does hereby hire and take under this Lease, that portion of the premises located at 500 Commerce Way, Jupiter, Florida, known as Units 5, 6 & 7 (hereinafter referred to as the "Demised Premises"). In addition to the Demised Premises, Lessee shall be entitled to the non-exclusive use of the parking lot (for purposes of ingress, egress and parking only) and the exterior sidewalks to and from the Demised Premises (for pedestrian ingress and egress only).

The Demised Premises shall be used and occupied by Lessee as Dyadic International (USA), Inc., and for no other purposes or uses whatsoever . Lessee specifically covenants and agrees that it will not use, or permit to be used, any part of the Demised Premises as anything other than Dyadic International (USA), Inc.  The term of the lease shall be five (5) years, beginning on the 1st day of July, 2008 and ending on the 30th day of June, 2013 at 12:00 A.M.

	
Annual  Period

	 	
Annual Rent

	 	 	
Sales Tax

	 	 	
Total Annual Sum Due

	 
	
 

	 	

	 	 	

	 	 	

	 
	
8/1/08-7/31/09

	 	
$

	
40,800.00

	 	 	
$

	
2652.00

	 	 	
$

	
43,452.00

	 
	
8/1/09-7/31/10

	 	
$

	
42,000.00

	 	 	
$

	
2730.00

	 	 	
$

	
44,730.00

	 
	
8/1/10-7/31/11

	 	
$

	
43,200.00

	 	 	
$

	
2808.00

	 	 	
$

	
46,008.00

	 
	
8/1/11-7/31/12

	 	
$

	
44,400.00

	 	 	
$

	
2886.00

	 	 	
$

	
47,286.00

	 
	
8/1/12-7/31/13

	 	
$

	
45,600.00

	 	 	
$

	
2964.00

	 	 	
$

	
48,564.00

	 
	
 

	 	 	 	 	 	 	 	 	 	 	 	 
	
 

	 	 	 	 	 	
Total Sum Due: $ 230,040.00

	 

Provided that Lessee is not in default hereunder beyond the expiration of all applicable notice and cure periods, Lessee may pay the Total Sum Due in monthly installments as follows:

$3621.00 per month for the period of   8/1/08 - 7/31/09

$3727.50 per month for the period of   8/1/09 - 7/31/10

$3834.00 per month for the period of  8/1/10 - 7/31/11

$3940.50 per month for the period of   8/1/11 - 7/31/12

$4047.00 per month for the period of   8/1/12 - 7/31/13

All payments of rent shall be made payable to Prima Properties (as agent for Lessor) in advance without demand on the 1st day of each month at 801 Maplewood Drive, Suite  17,  Jupiter, Florida 33458, or at such other place and to such other person, as Lessor may designate in writing. All rent shall be paid to Prima Properties without demand, set-off or any deduction whatsoever.   If any payment is not received within ten (10) days after the date due, a late charge of five (5%) per cent of the total payment shall be due Lessor as additional rent. Lease can be broken without any penalties provided Lessee gives Lessor a minimum of 60 day notice.  The demising wall between units 5 & 6 must be put back to its original condition.

Lessor and Lessee agree to the following express stipulations and conditions:

FIRST:  ASSIGNMENT, ENCUMBRANCE AND IMPROVEMENTS .  Lessee has permission to sublease all or part of the demised premises but with Lessor's consent not unreasonably withheld.

SECOND:  PERSONAL PROPERTY .  All personal property placed or moved on the Demised Premises above described shall be at the risk of Lessee or the owner thereof, regardless of the cause of said damage, including but not limited to, damage arising from the bursting or leaking of water pipes or from any act of negligence of any co-Lessee, other occupants of the building or of any other person whomsoever.

THIRD:  COMPLIANCE WITH  LAW.  Lessee shall promptly execute and comply with all statutes, ordinances, rules, orders, regulations and requirements of the Federal, State and City Government and of any and all their Departments and Bureaus applicable to said Demised Premises, for the correction, prevention, and abatement of nuisances or other grievances, in, upon, or connected with said Demised Premises during said term; and shall also promptly comply with and execute all rules, orders and regulations of the Southeastern Underwriters Association for the prevention of fires, at Lessee's own cost and expense.

FOURTH: DEMISED PREMISES RENDERED UNTENANTABLE BY CASUALTY. If the Demised Premises are damaged or destroyed so that the Demised Premises are rendered wholly untenantable, rent shall be proportionately paid up to the time of the casualty and thenceforth shall cease until the date when the Demised Premises have been repaired or restored by Lessor to the condition existing just prior to the date of casualty; provided, however, that in the event the Demised Premises have been rendered wholly untenantable, and if Lessor will be unable to restore the Demised Premises within sixty (60) days from the date of the casualty, Lessor or Lessee shall have the right to terminate the term of the Lease by giving notice to the other of its exercise of such right at any time within thirty (30) days after the occurrence of such damage or destruction.   If this notice is given, the term of the Lease shall terminate on the date specified in the notice, (which shall be not more than fifteen days after giving of such notice), as fully and completely as if such date were the date set forth in the Lease.  If Lessee exercises the option to terminate the Lease, Lessee must vacate the Demised Premises no later than three (3) days after the delivery of the notice of termination.   If neither party has given the notice of termination as herein provided, Lessor shall proceed to repair the Demised Premises, and the Lease shall not terminate.

If the Demised Premises shall be partially damaged or partially destroyed, the damages shall be repaired by and at the expense of Lessor and the rent, until such repairs are made, shall be apportioned according to the part of the Demised Premises which is usable by Lessee. Lessor shall not be liable for any inconvenience or annoyance to Lessee resulting from such damage or the repair thereof, and shall not be liable for any delay in restoring the Demised Premises.  If the Demised Premises are partially damaged or partially destroyed as a result of the wrongful or negligent act of Lessee or any person on the Demised Premises with Lessee's consent, there shall be no apportionment or abatement of rent.

FIFTH: EVENTS OF DEFAULT.  Lessee shall be in default under this Lease (a) if rent or additional rent is not paid within ten (10) days after the date due; or (b) if Lessee fails to cure a default in the performance of any other term or covenant of the Lease within twenty (20) days after written notice thereof from Lessor, or if default cannot be completely cured in such time, if Lessee shall not promptly proceed to cure such default within said twenty (20) days; or (c) if a petition in bankruptcy shall be filed by Lessee or if Lessee shall make a general assignment for the benefit of creditors; or (d) if a petition in bankruptcy shall be filed against Lessee and such proceeding is not vacated within twenty (20) days; or (e) if the Demised Premises become and remain vacant for a period of thirty (30) days; or (f) if the Demised Premises are used for some purpose other than the authorized use; (g) if the Lease is mortgaged or assigned without the written consent of Lessor; or (h) if any portion of the Demised Premises is sublet without the written consent of Lessor.

SIXTH: REMEDIES UPON DEFAULT.  In the event Lessee defaults under this Lease and fails to cure the same after the expiration of any notice and cure period provided herein, then Lessor may, at any time thereafter without notice or demand and without limiting Lessor in the exercise of any right or remedy which Lessor may have by reason of such default, resort to any of the following remedies:

A.            Declare all rent (including any additional rent due hereunder) for the remainder of the Lease, or part thereof, due in full and file an action to recover said rent.

B.            Immediately re-enter the Demised Premises and remove all persons and property therefrom and store such property in a public warehouse or elsewhere at the cost of, and for the account of, Lessee.  In the event of re-entry, Lessor shall not be guilty of trespass or incur any liability for any loss or damage incurred by Lessee occasioned thereby.   If Lessor elects to re-enter, as herein provided, or should it take possession pursuant to legal proceedings, Lessor may either (i) terminate this Lease, or (ii) without terminating this Lease, re­ let the Demised Premises or any part of the same for such term or terms (which may be for a term extending beyond the term of this Lease) and at such rent or rents and on such other terms and conditions as Lessor, in its sole and absolute discretion, may deem advisable, with the right to make alterations and repairs to the Demised Premises at the sole expense of Lessee.  On each such re-letting:

(1)            Lessee shall be immediately liable to pay to Lessor, in addition to any indebtedness other than rent due under this Lease, the expenses of such re-letting and repairs (except ordinary wear and tear), incurred by Lessor, and the amount, if any, by which the rent reserved in this Lease for the period of such re-letting (up to but not beyond the term of this Lease) exceeds the amount agreed to be paid as rent for the Demised Premises as a result of such re-letting; or

Page 2

(2)            At the option of Lessor, rents received by such Lessor from such re-letting shall be applied, first, to the payment of any expenses of such re-letting and repairs; then, to the payment of rent due and unpaid hereunder; and the residue, if any, shall be held by Lessor and applied in payment of rent as the same becomes due and payable under this Lease.

If Lessee has been credited with any rent to be received by such re-letting pursuant to subparagraph (1) above, and such rent shall not be promptly paid to Lessor by the new tenant, or if such rentals received from such re-letting under above subparagraph (2) above during any month is less than that to be paid during that month by Lessee hereunder, Lessee shall pay any such deficiency to Lessor.  Such deficiency shall be calculated and paid monthly.  No such re­ entry or taking possession of the Demised Premises by Lessor shall be construed as an election on the part of Lessor to terminate this Lease unless a written notice of such intention is given to Lessee or unless the termination of the Lease is decreed by a court of competent jurisdiction.

C.            Notwithstanding any election by Lessor to re-let the Demised Premises without terminating this Lease, Lessor may at any time thereafter elect to terminate this Lease for such previous default.  If Lessor terminates this Lease at any time for any default hereunder, then, in addition to any other remedy it may have, Lessor may recover from Lessee all damages incurred by reason of such breach, including the cost of recovering the Demised Premises, and including the worth at the time of such termination of the excess, if any, of the amount of rent and charges equivalent to rent reserved in this Lease for the remainder of the stated term over the then reasonable rental value of the premises for the remainder of the stated term, all of which amounts shall be immediately due and payable from Lessee to Lessor.

The rights and remedies granted herein to Lessor are distinct, separate and cumulative remedies, and the exercise of any remedy or remedies shall not be deemed to bar Lessor from exercising any or all of the others.  Any failure on the part of Lessor to exercise promptly any such remedies or rights granted hereunder shall not operate to forfeit any other of said remedies or rights.

In the event of a proceeding involving Lessee under the Bankruptcy Code, 11 U.S.C. §101 et seq., if the Lease is assumed by Lessee's trustee in bankruptcy (after he has cured all existing defaults, compensated Lessor for any loss resulting therefrom and provided adequate assurance of future performance), then the Lease may not be assigned by the trustee to a third party, unless such party (a) executes and delivers to Lessor an agreement in recordable form whereby such party assumes and agrees with Lessor to discharge all obligations of Lessee under the Lease, (b) has a net worth of operating experience at least comparable to that possessed by Lessee, as of the time of execution of the Lease; and (c) grants to Lessor, to secure the performance of such party's obligations under the Lease, a security interest in such party's merchandise, inventory, personal property, fixtures, furnishings, and accounts receivable (and in the proceeds of all of the foregoing) with respect to its operations in the Demised Premises, and in connection therewith, such party shall execute such security agreements, financing statements and other documents (the forms of which are to be prepared by Lessor) as are necessary to perfect such lien.

SEVENTH: PAYMENT OF UTILITIES AND RELATED EXPENSES. Lessee agrees to pay all charges for telephone, water, gas, electricity and all other utilities consumed on the Demised Premises by Lessee.  Any interruption or failure of utilities service due to causes beyond Lessor's control shall not entitle Lessee to any allowance or reduction of rent or any other form of damages as against Lessor, except to the extent caused by Lessor's or Lessor's agent's, employee's or contractor's negligence or intentional misconduct.

EIGHTH: LESSOR'S LIEN. Deleted

NINTH: RIGHT OF ENTRY. Lessor, or any of his agents, shall have the right to enter the Demised Premises during all reasonable hours but upon no less than twenty-four (24) hours' notice, to examine the same to make such repairs, additions or alterations as may be deemed necessary for the safety, comfort, or preservation thereof, or of said building, or to exhibit said Demised Premises.  The right of entry shall likewise exist for the purpose of removing placards, signs, fixtures, alterations, or additions, which do not conform to this agreement, or to the rules and regulations of the building.

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TENTH:  MAINTENANCE OF DEMISED PREMISES.  Lessee hereby accepts the Demised Premises in the condition which exists at the commencement of this lease and agrees to maintain all of the Demised Premises (including all air conditioning, heating, plumbing, sewer (or septic tank), water (or well), electrical and mechanical equipment and fixtures serving them same located thereon and therein) at its own expense in good working order and condition, provided that Lessor will be responsible for any air-conditioning repairs over $250.00.   Lessee shall repair immediately upon demand, any damage to water apparatus, or any fixture, appliances or appurtenances of said Demised Premises, or of the building, caused by any act or neglect of Lessee, or of any person or persons in the employ or under the control of Lessee. Lessor shall be responsible only to repair structural damage to the Demises Premises and the common areas, provided however, any structural repairs necessitated by the fault or negligence of Lessee, its agents, employees or invitees shall be repaired at the sole expense of Lessee.

ELEVENTH:  DISCLAIMER OF LIABILITY.  It is expressly agreed and understood by and between the parties to this agreement, that the Lessor shall not be liable for any damage or injury by water, which may be sustained by Lessee or for any other damage or injury resulting from the carelessness, negligence, or improper conduct on the part of any other lessee, or its agents or employees , or by reason of the breakage, leakage, or obstruction of the water, sewer or soil pipes, or other leakage in or about the said building.

TWELFTH:  INSOLVENCY OR BANKRUPTCY.  In the event of a proceeding involving Lessee under the Bankruptcy Code, 11 U.S.C. §101 et seq., if the Lease is assumed by Lessee's trustee in bankruptcy (after he has cured all existing defaults, compensated Lessor for any loss resulting therefrom and provided adequate assurance of future performance), then the Lease may not be assigned by the trustee to a third party, unless such party (a) executes and delivers to Lessor an agreement in recordable form whereby such party assumes and agrees with Lessor to discharge all obligations of Lessee under the Lease, (b) has a net worth of operating experience at least comparable to that possessed by Lessee and any guarantor hereof as of the time of execution of the Lease; and (c) grants to Lessor, to secure the performance of such party's obligations under the Lease, a security interest in such party's merchandise, inventory, personal property, fixtures, furnishings, and accounts receivable (and in the proceeds of all of the foregoing) with respect to its operations in the Demised Premises, and in connection therewith, such party shall execute such security agreements, financing statements and other documents (the forms of which are to be prepared by Lessor) as are necessary to perfect such lien.

THIRTEENTH:  BINDING EFFECT/ORAL AGREEMENTS.  This Lease shall bind Lessor and its assigns or successors, as well as the heirs, assigns, administrators , legal representatives, executors or successors of Lessee.  Any amendment or modification of this Lease shall be in writing and executed by all parties hereto.

FOURTEENTH : TIME OF THE ESSENCE. It is understood and agreed between the parties hereto that time is of the essence of this Lease as to all terms and conditions contained herein.

FIFTEENTH:  NOTICE.  It is understood and agreed between the parties hereto that written notice mailed (certified - return receipt requested) or delivered by hand to the Demised Premises to the attention of John Morris, who shall act an agent for Lessee, shall constitute sufficient notice to Lessee.  Written notice mailed (certified - return receipt requested) to Lessor at 801 Maplewood Drive, Jupiter, Florida 33458 shall constitute sufficient notice to Lessor, to comply with the terms of this Lease.

SIXTEENTH:  WORK PERFORMED FOR LESSEE.  It is understood and agreed between the parties hereto that any charges against Lessee by Lessor for services or for work done on the Demised Premises by order of Lessee or otherwise accruing under this Lease shall be considered as rent due and shall be included in any lien for rent due and unpaid.

SEVENTEENTH:  APPROVAL  OF SIGNS. Any signs or advertising to be installed and displayed by Lessee, including awnings, on or in connection with the Demised Premises shall be first submitted to Lessor for approval before installation, which approval may be withheld in Lessor's sole and absolute discretion.  Any signs or advertising approved by Lessor shall be maintained by Lessee in good condition during the term of this Lease.  Lessee will be permitted to erect any sign approved by Lessor on the sign monument located on the easterly boundary of the property; however,   Lessee shall be responsible to pay all expenses incurred by Lessee in the installation of the same.

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EIGHTEENTH:  Deleted.

NINETEENTH:  ATTORNEY'S  FEES AND VENUE.  In the event of any litigation whatsoever arising under or out of this lease, the parties hereto agree that the venue for same shall be in a court of competent jurisdiction in Palm  Beach County, Florida, and the parties further agree that the laws of the State of Florida shall govern the construction and enforcement of this Lease.  Notwithstanding anything else herein to the contrary, Lessee shall pay to Lessor, on demand, such expenses as Lessor may incur, including without limitation, court costs, attorney's fees and disbursements in enforcing the performance of any obligation of lessee under this Lease, whether suit is filed or not and, in the event of litigation, Lessee shall be responsible for all such expenses, both at the trial and appellate levels.  Lessor and Lessee hereby waive trial by jury in any action, proceeding or counter-claim brought by either of the parties hereto against the other on any matters arising out of, or in any way connected with, this lease, the relationship of Lessor and Lessee, Lessee's use or occupancy of the Demised Premises and any emergency or other statutory remedy. Lessee further agrees that it shall not interpose any counter-claim(s)  in a summary proceeding or other possessory action seeking the eviction of the Tenant from (i) asserting any defense(s) which it may have to eviction in the summary proceeding or possessory action, or (ii) filing an action for damages either in a separate proceeding, or as a counterclaim to any action seeking damages filed by Landlord, as long as the same is not consolidated with, or asserted as a defense to, the summary proceeding or possessory action.

TWENTIETH:  SECURITY  DEPOSIT.  A security deposit in the amount of $1,000 has already been collected.

TWENTY-FIRST:   DISCLAIMER  OF MECHANICS  LIEN.  Nothing in this lease shall be deemed, construed, or interpreted to imply any consent or agreement on the part of Lessor to subject Lessor's interest or estate to any liability under any mechanic's lien or other lien law for improvements made by, or on behalf of, Lessee.  If any mechanic's lien or other lien is claimed or filed against the Demised Premises, or any part thereof, for any work, labor, services or materials claimed to have been performed or furnished for or on behalf of Lessee or anyone holding any part of the Demised Premises through or under Lessee, Lessee shall cause the same to be cancelled and discharged of record by payment, bond or court order within twenty (20)days after notice by Lessor to Lessee.  Lessee hereby indemnifies and holds Lessor harmless from any claim, loss, liability or damage suffered by Lessor as a result of any such mechanic's lien or equitable lien.  Lessee shall execute any Memorandum of Lease prepared by Lessor containing a confirmation that the interest of Lessor shall not be subject to liens for improvements made by Lessee to the Demised Premises.

TWENTY-SECOND:  INSURANCE. Lessee shall maintain commercial general public liability insurance for the Demised Premises and the conduct or operation of business therein with Lessor designated as an additional named insured, which insurance shall have limits no less than $1.000.000.00 for bodily injury or death to any one person and $500,000.00 for property damage, including water damage.  Lessee shall also maintain fire and extended coverage insurance with regard to Lessee's stock and trade, fixtures, furniture, furnishings, equipment, signs and all other property of Lessee on the Demised Premises in the amount of their full insurable value .  Lessee shall procure and pay the premiums for such insurance prior to its occupancy and shall deliver to Lessor copies of such policies to confirm the insurance coverage.  Such policies shall be renewed at least thirty (30) days before the expiration of the policy term and shall contain a provision whereby the same cannot be cancelled unless Lessor is given at least ten (10) days prior written notice of such cancellation.

TWENTY-THIRD:   SUBORDINATION.   This Lease is subject and subordinate to all present and future mortgages and other encumbrances affecting the real property of which the Demised Premises form a part, and to all renewals, modifications, consolidations, replacements and extensions thereof.  Lessee agrees to execute at no expense to Lessor any instrument which may be deemed necessary by Lessor to further effect the subordination of the Lease herein provided.

TWENTY-FOURTH:   WAIVER OR CONSENT.  No consent, approval or waiver, whether expressed or implied, by Lessor of any breach of any covenant, agreement or obligation of Lessee hereunder shall be construed as a consent or waiver to, or of, any other breach of the same or any other covenant, agreement or obligation herein.  All typewritten or handwritten provisions of this lease shall prevail over and control any printed portions inconsistent herewith.

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TWENTY-FIFTH:  WAIVER  OF SUBROGATION.   In case of damage or destruction to the Demised Premises, or any contents thereof, Lessee shall look first to any insurance in his favor before making any claim against Lessor; and Lessee (i) hereby releases Lessor, his agents, employees and invitees for loss or damage covered under such policies, and (ii) shall immediately notify its insurance carrier that the foregoing waiver of subrogation is contained in this Lease, and shall obtain for each policy of such insurance, a waiver of subrogation endorsement permitting waiver of any claim against Lessor for loss or damage within the scope of the insurance.

TWENTY-SIXTH:   CONDEMNATION .  If the whole or any substantial part of the Demised Premises shall be condemned by eminent domain for any public or quasi-public purpose, this Lease shall terminate on the date of the vesting of title, and Lessee shall have no claim against Lessor for the value of any unexpired portion of the term of this Lease, nor shall Lessee be entitled to any part of the condemnation award.  If less than a substantial part of the Demised Premises is condemned, this Lease shall not terminate, but rent shall abate in proportion to the portion of the Demised Premises condemned, unless Lessee is compensated for such in any condemnation award or settlement received by him.

TWENTY-SEVENTH:   INDEMNITY .  In consideration of the lease of the premises to the Lessee, Lessee indemnifies and shall hold harmless Lessor from all losses, damages, liabilities, expenses or claims for any injuries or damages, including bodily injury or death, to any parties whatsoever, as well as any injuries or damages to the personal property of any such parties, which injuries or damages arise from the use or occupancy of the Demised Premises by Lessee or are caused by the acts, omissions, neglect, or fault of Lessee or Lessor, their agents, servants, employees, licensees, customers or invitees.  Furthermore, Lessor shall not be liable to Lessee for any damage, loss or injury to the person or property of Lessee which may be caused by the acts, neglect, omission or fault of any person, firm or corporation, specifically including that of Lessor.

TWENTY-EIGHTH:   END OF TERM/ABANDONED  PROPERTY.  At the end of the initial term, or the renewal term if elected by Lessee, Lessee shall vacate and surrender the Demised Premises to Lessor, broom clean, and in as good condition as the Demised Premises were at the beginning of the term, ordinary wear and tear, and damage by fire and the elements excepted, and Lessee shall remove all of Lessee's property.  All installations, property, and additions required to be removed by Lessee at the end of the term which remain in the Demised Premises after Lessee has vacated shall be considered abandoned by Lessee and, at the option of the Lessor, may either be retained as Lessor's property or may be removed by Lessor at Lessee's expense .

TWENTY-NINTH:   HOLDING OVER/DOUBLE RENT.  If Lessee holds over and continues in possession of the Demised Premises, or any part thereof, after the expiration or termination of the Lease without Lessor's permission, Lessor may recover double the amount of the rent due for each day Lessee holds over and refuses to surrender possession.  Such daily rent shall be computed by dividing the rent for the last month of the Lease by fifteen.

THIRTIETH:   BROKER'S COMMISSION.   Lessee represents to Lessor that Lessee has not dealt with any broker in connection with this transaction.   Lessee hereby indemnifies and holds Lessor harmless from and against any damages, loss, claim or liability suffered by Lessor (including attorney's fees incurred in the defense of any such claim and the enforcement of this indemnity) as a result of any claim made by any broker arising out of any contact between Lessee and such broker with regard to the Demised Premises.

THIRTY-FIRST:   HAZARDOUS  MATERIALS. For purposes of this Thirty-Third Paragraph, the following definitions shall apply:

-  "Hazardous Materials" shall mean any flammable explosives, radioactive materials, hazardous wastes, toxic substances or related materials and shall also mean, but shall not be limited to, substances defined as "hazardous substances" in the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. Sections 9601-9657; the Hazardous Materials Transportation Act of 1975, 49 U.S.C. Sections 1801-1812; the Resource Conservation and Recovery Act of 1976, 42 U.S.C. Sections 6901- 6987; and those substances defined as "hazardous substance" in the Florida Hazardous Substances Law, Sections 501.061-501.121,  Florida Statutes.

-  "Hazardous Materials Laws" shall mean any Federal, State or local laws, ordinances or regulations relating to Hazardous Materials.

Page 6

-  "Hazardous Materials Claims" shall mean: (i) any and all enforcement, cleanup, remedial, removal or other governmental or regulatory actions instituted, completed or threatened pursuant to Hazardous Materials Laws; (ii) all claims made or threatened by any third party against the Lessee or the Demised Premises relating to damage, contribution, cost recovery compensation, loss or injury resulting from any Hazardous Materials.

Lessee hereby covenants with Lessor:

(A)            To notify Lessor in writing of the nature of any Hazardous Materials Claims as hereinafter defined, immediately upon their occurrence.

(B)            To indemnify and hold harmless Lessor, its employees and agents from and against any and all claims, damages and liabilities arising in connection with the presence, use, storage, disposal or transport of any Hazardous Materials on, under, from or about the Demised Premises including, without limitation: (i) all foreseeable and all unforeseeable consequential damages directly or indirectly arising out of the use, generation, storage or disposal of Hazardous Materials by Lessee; and (ii) all costs of any required or necessary repair, cleanup or detoxification and the preparation of any closure or other required plans, to the full extent that such action is attributable, directly or indirectly, to the presence, use, generation, storage, release, threatened release or disposal of Hazardous Materials by any person on the Demised Premises.  Lessee's obligation pursuant to the foregoing indemnity shall survive the term of this Lease.

(C)            To keep and maintain the Demised Premises in compliance with (and not cause or permit the Demised Premises to be in violation of) any Federal, State or local laws, ordinances or regulations relating to industrial hygiene or to environmental conditions on, under or about the Demised Premises including, but not limited to, soil and underground conditions.

(D)            Not to use, generate manufacture, store or dispose of Hazardous Materials (as hereinafter set out) on the Demised Premises; provided however, Lessee may store and use (i) Hazardous Materials to the extent that they are necessary for the maintenance of the Demised Premises, and (ii) those substances described in Exhibit A attached hereto in quantities substantially similar to those set forth in Exhibit A, provided that the storage and use described in subparagraphs (i) and (ii) hereof shall be consistent with, and in compliance with, all applicable federal, state and local laws.

(E)          Lessor shall have the right to join and participate in, as a party if it so elects, any legal proceedings or actions initiated in connection with any Hazardous Materials Claims.  Lessor's reasonable attorney's fees and costs in connection therewith shall be reimbursed by Lessee upon demand.  All such fees and costs shall be added to the indebtedness under this Lease and shall be secured thereby.

(F)      Lessee shall, at any time and from time to time, within thirty (30) days after notice and written demand by Lessor, deliver to Lessor a written environmental evaluation of the Demised Premises, which evaluation shall address matters as to whether the Demised Premises, or any part thereof, has or is being used for the use, handling, storage, transportation or disposal of Hazardous Materials and if so, as to whether such use, handling, storage, transportation or disposal conforms to the requirements of Hazardous Materials Laws. The evaluation shall be performed by an independent, recognized environmental consulting firm of duly licensed registered engineers.

IN WITNESS WHEREOF, the parties hereto have hereunto executed this instrument for the purpose herein expressed, the day and year above written.

Signed, sealed and delivered in the presence of:

	
 

	
 

	
Lessor:

	
 

	
 

	
 

	
 

	
/s/ Lucia Collins

	
 

	
By:

	
/s/ 500 Commerce Way LLC

	
As to Lessor Lucia Collins

	
 

	
 

	
500 Commerce Way LLC

	
 

	
 

	
 

	
 

	
/s/ Brian J. Smith

	
 

	
 

	
 

	
As to Lessor Brian J. Smith

	
 

	
 

	
 

Page 7

	
 

	
 

	
Lessee (if corporate)

	
 

	
 

	
Dyadic International (USA), Inc.

	
 

	
 

	
 

	
 

	
/s/ Richard H. Jundzil

	
 

	
By:

	
/s/ Mark A. Emalfarb

	
As to Lessee Richard H. Jundzil

	
 

	
 

	
Mark A. Emalfarb, CEO

	
 

	
 

	
 

	
 

	
/s/ 

	
 

	
 

	
 

	
As to Lessee

	
 

	
 

	
(Corporate Seal)

	
 

	
 

	
 

	
[SEAL]

Page 8

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