Document:

Exhibit 10.20

 

 

FORM OF HEALTH INSURANCE INNOVATIONS, INC.

LONG TERM INCENTIVE PLAN

 

Section 1.  Purpose.  The purpose of the Health Insurance Innovations, Inc. Long Term Incentive Plan (the “Plan”) is to motivate and reward those executives and other individuals who are expected to contribute significantly to the success of Health Insurance Innovations, Inc. (the “Company”) and its Affiliates to perform at the highest level and to further the best interests of the Company and its shareholders.  Capitalized terms used herein shall have the respective meanings set forth in Section 19.

 

Section 2.  Eligibility.

 

(a)  Any employee, Non-Employee Director, consultant or other advisor of, or any other individual who provides services to, the Company or any Affiliate shall be eligible to be selected to receive an Award under the Plan.

 

(b)   Holders of equity compensation awards granted by a company acquired by the Company (or whose business is acquired by the Company) or with which the Company combines are eligible for grants of Replacement Awards under the Plan.

 

Section 3.  Administration.

 

(a)  The Plan shall be administered by the Committee.  The Committee shall be appointed by the Board and shall consist of not less than three directors of the Board.  To the extent necessary to comply with applicable regulatory regimes, any action by the Committee shall require the approval of  Committee members who are (i) independent, within the meaning of and to the extent required by applicable rulings and interpretations of the principal stock market or exchange on which the Shares are quoted or traded; (ii) each a non-employee director within the meaning of Rule 16b-3 under the Exchange Act; and (iii) each an outside director within the meaning of Section 162(m) of the Code.  The Board may designate one or more directors as a subcommittee who may act for the Committee if necessary to satisfy the requirements of this Section.  To the extent permitted by applicable law, the Committee may delegate to one or more officers of the Company the authority to grant Awards, except that such delegation shall not be applicable to any Award for a person then covered by Section 16 of the Exchange Act or for a Non-Employee Director. The Committee may issue rules and regulations for administration of the Plan.  It shall meet at such times and places as it may determine.  For the purposes of this Section 3(a), “officer” means an executive of the Company who is elected to his or her position by the Board.

 

  

  

  

 

(b)  Subject to the terms of the Plan and applicable law, the Committee (or its delegate) shall have full power and authority to:  (i) designate Participants; (ii) determine the type or types of Awards (including Replacement Awards) to be granted to each Participant under the Plan; (iii) determine the number of Shares to be covered by (or with respect to which payments, rights or other matters are to be calculated in connection with) Awards; (iv) determine the terms and conditions of any Award; (v) determine whether, to what extent and under what circumstances Awards may be settled or exercised in cash, Shares, other Awards, other property, net settlement or any combination thereof, or canceled, forfeited or suspended, and the method or methods by which Awards may be settled, exercised, canceled, forfeited or suspended; (vi) determine whether, to what extent and under what circumstances cash, Shares, other Awards, other property and other amounts payable with respect to an Award under the Plan shall be deferred either automatically or at the election of the holder thereof or of the Committee; (vii) interpret and administer the Plan and any instrument or agreement relating to, or Award made under, the Plan; (viii) establish, amend, suspend or waive such rules and regulations and appoint such agents as it shall deem appropriate for the proper administration of the Plan; and (ix) make any other determination and take any other action that the Committee deems necessary or desirable for the administration of the Plan.

 

(c)  All decisions of the Committee shall be final, conclusive and binding upon all parties, including the Company, its shareholders and Participants and any Beneficiaries thereof.

 

Section 4.  Shares Available for Awards.

 

(a)  Subject to adjustment as provided in Section 4(b), (i) the maximum number of Shares available for issuance under the Plan shall not  exceed [•] Shares and (ii) no Participant may receive under the Plan in any calendar year (A) Options and SARs that relate to more than [•] Shares or (B) if and to the extent that any such Awards are intended to constitute Section 162(m) Compensation and denominated in Shares, Restricted Stock, RSUs, Performance Awards or Other Stock-Based Awards that relate to more than [•] Shares.  Shares underlying Replacement Awards and Shares remaining available for grant under a plan of an acquired company or of a company with which the Company combines, appropriately adjusted to reflect the acquisition or combination transaction, shall not reduce the number of Shares remaining available for grant hereunder.  The maximum number of Shares available for issuance under Incentive Stock Options shall be [•] and shall not be increased by operation of Section 4(b).

 

(b)  Any Shares subject to an Award (other than a Replacement Award and any Award granted out of the authorized shares of an acquired plan), that expires, is canceled, forfeited or otherwise terminates without the delivery of 

 

  

2

  

 

such Shares, including (i) the number of Shares surrendered or withheld in payment of any grant, acquisition, exercise or hurdle price of such Award or award or taxes related to such Award or award and (ii) any Shares subject to such Award or award to the extent that Award or award is settled without the issuance of Shares, shall again be, or shall become, available for issuance under the Plan

 

(c)  In the event that, as a result of any dividend or other distribution (whether in the form of cash, Shares or other securities), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase or exchange of Shares or other securities of the Company, issuance of warrants or other rights to acquire Shares or other securities of the Company, issuance of Shares pursuant to the anti-dilution provisions of securities of the Company, or other similar corporate transaction or event affecting the Shares, an adjustment is necessary in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan, then the Committee, in its discretion, shall adjust equitably any or all of:

 

(i)  the number and type of Shares (or other securities) which thereafter may be made the subject of Awards, including the aggregate and individual limits specified in Section 4(a);

 

(ii)  the number and type of Shares (or other securities) subject to outstanding Awards; and

 

(iii)  the grant, acquisition, exercise or hurdle price with respect to any Award or, if deemed appropriate, make provision for a cash payment to the holder of an outstanding Award;

 

provided, however, that the number of Shares subject to any Award denominated in Shares shall always be a whole number.

 

(d)  Any Shares delivered pursuant to an Award may consist, in whole or in part, of authorized and unissued Shares or Shares acquired by the Company.

 

Section 5.  Options. The Committee is authorized to grant Options to Participants with the following terms and conditions and with such additional terms and conditions, in either case not inconsistent with the provisions of the Plan, as the Committee shall determine.

 

(a)  The exercise price per Share under an Option shall be determined by the Committee; provided, however, that, except to the extent provided in Section 4(c) or in the case of Replacement Awards, such exercise price shall not be less than the Fair Market Value of a Share on the date of grant of such Option.  The Committee shall not lower the exercise price of an outstanding Option except to the extent permitted in Section 4(c) or as provided in Section 12(b).

 

  

3

  

 

(b)  The term of each Option shall be fixed by the Committee but shall not exceed 10 years from the date of grant of such Option.

 

(c)  The Committee shall determine the time or times at which an Option may be exercised in whole or in part.

 

(d)  The Committee shall determine the method or methods by which, and the form or forms, including cash, Shares, other Awards, other property, net settlement or any combination thereof, having a Fair Market Value on the exercise date equal to the relevant exercise price, in which payment of the exercise price with respect thereto may be made or deemed to have been made.

 

(e)  The terms of any Incentive Stock Option granted under the Plan shall comply in all respects with the provisions of Section 422 of the Code.

 

Section 6.  Stock Appreciation Rights.  The Committee is authorized to grant SARs to Participants with the following terms and conditions and with such additional terms and conditions, in either case not inconsistent with the provisions of the Plan, as the Committee shall determine.

 

(a)  SARs may be granted under the Plan to Participants either alone (“freestanding”) or in addition to other Awards granted under the Plan (“tandem”) and may, but need not, relate to a specific Option granted under Section 5.

 

(b)  The exercise or hurdle price per Share under a SAR shall be determined by the Committee; provided, however, that, except to the extent provided in Section 4(c) or in the case of Replacement Awards, such exercise or hurdle price shall not be less than the Fair Market Value of a Share on the date of grant of such SAR (or if granted in connection with an Option, on the grant date of such Option).  The Committee shall not lower the exercise or hurdle price of an outstanding SAR except to the extent permitted in Section 4(c) or as provided in Section 12(b).

 

(c)  The term of each SAR shall be fixed by the Committee but shall not exceed 10 years from the date of grant of such SAR.

 

(d)  The Committee shall determine the time or times at which a SAR may be exercised or settled in whole or in part.

 

(e)  The Committee shall determine the method or methods by which, and the form or forms, including cash, Shares, other Awards, other property, net settlement or any combination thereof, in which payment of the amount owing upon exercise or settlement of an SAR may be made.

 

Section 7.  Restricted Stock and RSUs.  The Committee is authorized to grant Awards of Restricted Stock and RSUs to Participants with the following 

 

  

4

  

 

terms and conditions and with such additional terms and conditions, in either case not inconsistent with the provisions of the Plan, as the Committee shall determine.

 

(a)  Shares of Restricted Stock and RSUs shall be subject to such restrictions as the Committee may impose (including any limitation on the right to vote a Share of Restricted Stock or the right to receive any dividend, dividend equivalent or other right), which restrictions may lapse separately or in combination at such time or times, in such installments or otherwise, as the Committee may deem appropriate.  Without limiting the generality of the foregoing, if the Award relates to Shares on which dividends are declared during the period that the Award is outstanding, the Award shall not provide for the payment of such dividend (or a dividend equivalent) to the Participant prior to the time at which such Award, or applicable portion thereof, becomes nonforfeitable, unless otherwise provided in the applicable Award Document.  Unless otherwise elected by the Participant, the Award shall be paid out no later than March 15th of the year following the date of vesting.

 

(b)  Any share of Restricted Stock granted under the Plan may be evidenced in such manner as the Committee may deem appropriate, including book-entry registration or issuance of a stock certificate or certificates.  In the event any stock certificate is issued in respect of shares of Restricted Stock granted under the Plan, such certificate shall be registered in the name of the Participant and shall bear an appropriate legend referring to the terms, conditions and restrictions applicable to such Restricted Stock.

 

(c)  If and to the extent that the Committee intends that an Award granted under this Section 7 shall constitute or give rise to Section 162(m) Compensation, such Award may be structured in accordance with the requirements of Section 8, including the performance criteria and the Award limitation set forth therein, and any such Award shall be considered a Performance Award for purposes of the Plan.

 

(d)  The Committee may provide in an Award Document that an Award of Restricted Stock is conditioned upon the Participant making or refraining from making an election with respect to the Award under Section 83(b) of the Code.  If a Participant makes an election pursuant to Section 83(b) of the Code with respect to an Award of Restricted Stock, the Participant shall be required to file promptly a copy of such election with the Company.

 

(e)  The Committee may determine the form or forms (including cash, Shares, other Awards, other property or any combination thereof) in which payment of the amount owing upon settlement of any RSU Award may be made.

 

Section 8.  Performance Awards.  The Committee is authorized to grant Performance Awards to Participants with the following terms and conditions and 

 

  

5

  

 

with such additional terms and conditions, in either case not inconsistent with the provisions of the Plan, as the Committee shall determine.

 

(a)  Performance Awards may be denominated as a cash amount, a number of Shares or a combination thereof and are Awards which may be earned upon achievement or satisfaction of performance conditions specified by the Committee.  In addition, the Committee may specify that any other Award shall constitute a Performance Award by conditioning the right of a Participant to exercise the Award or have it settled, and the timing thereof, upon achievement or satisfaction of such performance conditions as may be specified by the Committee.  The Committee may use such business criteria and other measures of performance as it may deem appropriate in establishing any performance conditions.  Subject to the terms of the Plan, the performance goals to be achieved during any Performance Period, the length of any Performance Period, the amount of any Performance Award granted and the amount of any payment or transfer to be made pursuant to any Performance Award shall be determined by the Committee.  If the Performance Award relates to Shares on which dividends are declared during the Performance Period, the Performance Award shall not provide for the payment of such dividend (or dividend equivalent) to the Participant prior to the time at which such Performance Award, or the applicable portion thereof, is earned.

 

(b)  Every Performance Award shall, if the Committee intends that such Award should constitute Section 162(m) Compensation, include a pre-established formula, such that payment, retention or vesting of the Award is subject to the achievement during a Performance Period or Performance Periods, as determined by the Committee, of a level or levels of, or increases in, in each case as determined by the Committee, one or more of the following performance measures with respect to the Company:  overhead costs, general and administration expense, market price of a Share, market price appreciation of Share value, cash flow, reserve value, net asset value, firm value, economic value added, earnings, earnings per Share, total shareholder return, net income, operating income, cash from operations, revenue growth, margin, pre-tax income, EBIT (earnings before interest and taxes), EBITDA (earnings before interest, taxes, depreciation and amortization), net capital employed, return on assets, stockholder return, reserve replacement, return on equity, return on capital, production, assets, asset turnover, inventory turnover, unit volume, sales, sales growth, capacity utilization, market share, increase in customer base, environmental health and safety, diversity, quality, or strategic business criteria consisting of one or more objectives based on meeting specified goals relating to acquisitions or divestitures.  Performance criteria may be measured on an absolute (e.g., plan or budget) or relative basis.  Relative performance may be measured against a group of peer companies, a financial market index or other acceptable objective and quantifiable indices.  Except in the case of an award intended to qualify as Section 162(m) Compensation, if the Committee determines that a 

 

  

6

  

 

change in the business, operations, corporate structure or capital structure of the Company, or the manner in which the Company conducts its business, or other events or circumstances render the performance objectives unsuitable, the Committee may modify the performance objectives or the related minimum acceptable level of achievement, in whole or in part, as the Committee deems appropriate and equitable.  Performance measures may vary from Performance Award to Performance Award, and from Participant to Participant, and may be established on a stand-alone basis, in tandem or in the alternative.  The performance goals for the Performance Period must be established, in writing, no later than the lesser of either ninety (90) or the number of days equal to 25 percent of the Performance Period after the commencement of the Performance Period.  Except as otherwise permitted by Section 162(m) of the Code, the minimum level at which a Participant will earn any performance-based compensation, the level at which a Participant will earn the maximum performance-based compensation and the interpolation guidelines for calculating payments within that range must be established by the Committee, in writing, no later than the lesser of either ninety (90) days or the number of days equal to 25 percent of the Performance Period after the commencement of the Performance Period.  The Committee shall have the power to impose such other restrictions on Awards subject to this Section 8(b) as it may deem necessary or appropriate to ensure that such Awards satisfy all requirements for Section 162(m) Compensation.  The maximum amount of any Performance Award denominated in cash that is intended to constitute Section 162(m) Compensation that may be earned in any calendar year shall not exceed $[•].

 

(c)  Settlement of Performance Awards; Committee Certification; Other Terms.  Settlement of Performance Awards shall be in cash, Shares, other Awards, other property, net settlement or any combination thereof, in the discretion of the Committee.  Performance Awards will be settled only after the end of the relevant Performance Period.  The Committee may, in its discretion, increase or reduce the amount of a settlement otherwise to be made in connection with a Performance Award but may not exercise discretion to increase any amount payable to a Covered Employee in respect of a Performance Award intended to qualify as Section 162(m) Compensation.  As soon as reasonably practicable after the end of each Performance Period, and prior to the payment of any Section 162(m) Compensation to a Participant, the Committee shall certify, in writing, that the performance goals for such Performance Period were satisfied.  Any settlement that changes the form of payment from that originally specified shall be implemented in a manner such that the Performance Award and other related Awards do not, solely for that reason, fail to qualify as Section 162(m) Compensation.

 

Section 9.  Other Share-Based Awards.  The Committee is authorized, subject to limitations under applicable law, to grant to Participants such other Awards that may be denominated or payable in, valued in whole or in part by 

 

  

7

  

 

reference to, or otherwise based on, or related to, Shares or factors that may influence the value of Shares, including convertible or exchangeable debt securities, other rights convertible or exchangeable into Shares, acquisition rights for Shares, Awards with value and payment contingent upon performance of the Company or business units thereof or any other factors designated by the Committee.  The Committee shall determine the terms and conditions of such Awards.  Shares delivered pursuant to an Award in the nature of an acquisition right granted under this Section 9 shall be acquired for such consideration, paid for at such times, by such methods and in such forms, including cash, Shares, other Awards, other property or any combination thereof, as the Committee shall determine; provided that the acquisition price therefor shall not be less than the Fair Market Value of such Shares on the date of grant of such right.

 

Section 10.  Effect of Termination of Service or a Change in Control on Awards.

 

(a)  The Committee may provide, by rule or regulation or in any Award Document, or may determine in any individual case, the circumstances in which, and the extent to which, an Award may be exercised, settled, vested, paid or forfeited in the event of a Participant’s Termination of Service prior to the end of a Performance Period or the vesting, exercise or settlement of such Award.

 

(b)  The Committee may set forth the treatment of an Award upon a Change in Control in the applicable Award Document.

 

(c)  In the case of an Option or SAR Award, except as otherwise provided in the applicable Award Document, upon a Change in Control, a merger or consolidation involving the Company or any other event with respect to which the Committee deems it appropriate, the Committee may cause such Award to be canceled in consideration of (i) the full acceleration of such Award and either (A) a period of at least ten days prior to such Change in Control, merger, consolidation or other event to exercise the Award or (B) a payment in cash or other consideration to the Participant who holds such Award in an amount equal to the Intrinsic Value of such Award (which may be equal to but not less than zero), which, if in excess of zero, shall be payable upon the effective date of such Change in Control, merger, consolidation or other event or (ii) a substitute award (which immediately upon grant shall have an Intrinsic Value equal to the Intrinsic Value of such Award and shall include terms and conditions not less favorable to the Participant than the terms and conditions of such Award).

 

Section 11.  General Provisions Applicable to Awards.

 

(a)  Awards shall be granted for no cash consideration or for such minimal cash consideration as may be required by applicable law.

 

  

8

  

 

(b)  Awards may, in the discretion of the Committee, be granted either alone or in addition to or in tandem with any other Award or any award granted under any other plan of the Company.  Awards granted in addition to or in tandem with other Awards, or in addition to or in tandem with awards granted under any other plan of the Company, may be granted either at the same time as or at a different time from the grant of such other Awards or awards.

 

(c)  Subject to the terms of the Plan, payments or transfers to be made by the Company upon the grant, exercise or settlement of an Award may be made in the form of cash, Shares, other Awards, other property, net settlement or any combination thereof, as determined by the Committee in its discretion, and may be made in a single payment or transfer, in installments or on a deferred basis, in each case in accordance with rules and procedures established by the Committee.  Such rules and procedures may include provisions for the payment or crediting of reasonable interest on installment or deferred payments or the grant or crediting of dividend equivalents in respect of installment or deferred payments.

 

(d)  Except as may be permitted by the Committee or as specifically provided in an Award Document, (i) no Award and no right under any Award shall be assignable, alienable, saleable or transferable by a Participant otherwise than by will or pursuant to Section 11(d) and (ii) during a Participant’s lifetime, each Award, and each right under any Award, shall be exercisable only by the Participant or, if permissible under applicable law, by the Participant’s guardian or legal representative; provided, however, that the Committee shall not permit, and an Award Document shall not provide for, any Award to be transferred or transferable to a third party for value or consideration without the approval of the Company’s shareholders.  The provisions of this Section 11(d) shall not apply to any Award that has been fully exercised or settled, as the case may be, and shall not preclude forfeiture of an Award in accordance with the terms thereof.

 

(e)  A Participant may designate a Beneficiary or change a previous Beneficiary designation at such times prescribed by the Committee by using forms and following procedures approved or accepted by the Committee for that purpose.

 

(f)  All certificates for Shares and/or other securities delivered under the Plan pursuant to any Award or the exercise thereof shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under the Plan or the rules, regulations and other requirements of the Securities and Exchange Commission, any stock market or exchange upon which such Shares or other securities are then quoted, traded or listed, and any applicable securities laws, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions.

 

  

9

  

 

(g)  The Committee may specify in an Award Document that the Participant’s rights, payments and benefits with respect to an Award shall be subject to reduction, cancellation, forfeiture or recoupment upon the occurrence of certain specified events, in addition to any otherwise applicable vesting or performance conditions of an Award.  Such events may include a Termination of Service with or without Cause (and, in the case of any Cause that is resulting from an indictment or other non-final determination, the Committee may provide for such Award to be held in escrow or abeyance until a final resolution of the matters related to such event occurs, at which time the Award shall either be reduced, cancelled or forfeited (as provided in such Award Document) or remain in effect, depending on the outcome), violation of material policies, breach of noncompetition, confidentiality or other restrictive covenants that may apply to the Participant, or other conduct by the Participant that is detrimental to the business or reputation of the Company and/or its Affiliates.

 

(h)  If the Company is required to prepare an accounting restatement due to the material noncompliance of the Company, as a result of misconduct, with any financial reporting requirement under the securities laws, and if the Participant knowingly or grossly negligently engaged in the misconduct, or knowingly or grossly negligently failed to prevent the misconduct, or if the Participant is one of the individuals subject to automatic forfeiture under Section 304 of the United States Sarbanes-Oxley Act of 2002 (and not otherwise exempted), the Participant shall reimburse the Company the amount of any payment in settlement of any Award earned or accrued during the twelve-month period following the first public issuance or filing with the United States Securities and Exchange Commission (whichever first occurred) of the financial document not in compliance with such financial reporting requirement.  Rights, payments and benefits under any Award shall be subject to repayment to or recoupment (clawback) by the Company in accordance with such policies and procedures as the Committee or Board may adopt from time to time, including policies and procedures to implement applicable law (including, but not limited to, Section 954 of the Dodd-Frank Act), stock market or exchange rules and regulations or accounting or tax rules and regulations.

 

Section 12.  Amendments and Termination.

 

(a)  Except to the extent prohibited by applicable law and unless otherwise expressly provided in an Award Document or in the Plan, the Board may amend, alter, suspend, discontinue or terminate the Plan or any portion thereof at any time; provided, however, that no such amendment, alteration, suspension, discontinuation or termination shall be made without (i) shareholder approval, if such approval is required by applicable law or the rules of the stock market or exchange, if any, on which the Shares are principally quoted or traded or (ii) the consent of the affected Participant, if such action would materially adversely affect the rights of such Participant under any 

 

  

10

  

 

outstanding Award, except to the extent any such amendment, alteration, suspension, discontinuance or termination is made to cause the Plan to comply with applicable law, stock market or exchange rules and regulations or accounting or tax rules and regulations.  Notwithstanding anything to the contrary in the Plan, the Committee may amend the Plan in such manner as may be necessary to enable the Plan to achieve its stated purposes in any jurisdiction in a tax-efficient manner and in compliance with local laws, rules and regulations.

 

(b)  The Committee may waive any conditions or rights under, amend any terms of, or amend, alter, suspend, discontinue or terminate any Award theretofore granted, prospectively or retroactively, without the consent of any relevant Participant or holder or Beneficiary of an Award; provided, however, that no such action shall materially adversely affect the rights of any affected Participant or holder or Beneficiary under any Award theretofore granted under the Plan, except to the extent any such action is made to cause the Plan to comply with applicable law, stock market or exchange rules and regulations or accounting or tax rules and regulations; provided further that, except as provided inSection 4(c), the Committee shall not without the approval of the Company’s shareholders (a) lower the exercise price per Share of an Option or SAR after it is granted or take any other action that would be treated as a repricing of such Award under the rules of the principal stock market or exchange on which the Company’s Shares are quoted or traded, or (b) cancel an Option or SAR when the exercise price per Share exceeds the Fair Market Value in exchange for cash or another Award (other than in connection with a Change in Control); and provided further, that the Committee’s authority under this Section 12(b) is limited by the provisions of Section 11(d) and, in the case of Awards subject to Section 8(b), as provided in Section 8(b).

 

(c)  Except as provided in Section 8(b), the Committee shall be authorized to make adjustments in the terms and conditions of, and the criteria included in, Awards in recognition of events (including the events described in Section 4(b)) affecting the Company, or the financial statements of the Company, or of changes in applicable law, stock market or exchange rules and regulations or accounting or tax rules and regulations, whenever the Committee determines that such adjustments are appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan.

 

(d)  The Committee may correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Award in the manner and to the extent it shall deem desirable to carry the Plan into effect.

 

Section 13.  Miscellaneous.

 

  

11

  

 

(a)  No employee, Participant or other person shall have any claim to be granted any Award under the Plan, and there is no obligation for uniformity of treatment of employees, Participants or holders or Beneficiaries of Awards under the Plan.  The terms and conditions of Awards need not be the same with respect to each recipient.  Any Award granted under the Plan shall be a one-time Award that does not constitute a promise of future grants.  The Company, in its sole discretion, maintains the right to make available future grants under the Plan.

 

(b)  The grant of an Award shall not be construed as giving a Participant the right to be retained in the employ of, or to continue to provide services to, the Company or any Affiliate.  Further, the Company or the applicable Affiliate may at any time dismiss a Participant, free from any liability, or any claim under the Plan, unless otherwise expressly provided in the Plan or in any Award Document or in any other agreement binding the parties.  The receipt of any Award under the Plan is not intended to confer any rights on the receiving Participant except as set forth in the applicable Award Document.

 

(c)  Nothing contained in the Plan shall prevent the Company from adopting or continuing in effect other or additional compensation arrangements, and such arrangements may be either generally applicable or applicable only in specific cases.

 

(d)  The Company shall be authorized to withhold from any Award granted or any payment due or transfer made under any Award or under the Plan or from any compensation or other amount owing to a Participant the amount (in cash, Shares, other Awards, other property, net settlement or any combination thereof) of applicable withholding taxes due in respect of an Award, its exercise or settlement or any payment or transfer under such Award or under the Plan and to take such other action (including providing for elective payment of such amounts in cash or Shares by the Participant) as may be necessary in the opinion of the Company to satisfy all obligations for the payment of such taxes.

 

(e)  If any provision of the Plan or any Award Document is or becomes or is deemed to be invalid, illegal or unenforceable in any jurisdiction, or as to any person or Award, or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to applicable laws, or if it cannot be so construed or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan or the Award Document, such provision shall be stricken as to such jurisdiction, person or Award, and the remainder of the Plan and any such Award Document shall remain in full force and effect.

 

(f)  Neither the Plan nor any Award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company and a Participant or any other person.  To the extent that any person 

 

  

12

  

 

acquires a right to receive payments from the Company pursuant to an Award, such right shall be no greater than the right of any unsecured general creditor of the Company.

 

(g)  No fractional Shares shall be issued or delivered pursuant to the Plan or any Award, and the Committee shall determine whether cash or other securities shall be paid or transferred in lieu of any fractional Shares, or whether such fractional Shares or any rights thereto shall be canceled, terminated or otherwise eliminated.

 

(h)  Awards may be granted to Participants who are non-United States nationals or employed or providing services outside the United States, or both, on such terms and conditions different from those applicable to Awards to Participants who are employed or providing services in the United States as may, in the judgment of the Committee, be necessary or desirable to recognize differences in local law, tax policy or custom. The Committee also may impose conditions on the exercise or vesting of Awards in order to minimize the Company’s obligation with respect to tax equalization for Participants on assignments outside their home country.

 

(i)  The Company shall take responsibility for the information set out in the Plan.

 

Section 14.  Effective Date of the Plan.  The Plan shall be effective as of the Effective Date.

 

Section 15.  Term of the Plan.  No Award shall be granted under the Plan after the earliest to occur of (i) the ten-year anniversary of the Effective Date, (ii) the maximum number of Shares available for issuance under the Plan have been issued or (iii) the Board terminates the Plan in accordance with Section 12(a).  However, unless otherwise expressly provided in the Plan or in an applicable Award Document, any Award theretofore granted may extend beyond such date, and the authority of the Committee to amend, alter, adjust, suspend, discontinue or terminate any such Award, or to waive any conditions or rights under any such Award, and the authority of the Board to amend the Plan, shall extend beyond such date.

 

Section 16.  Section 409A of the Code. With respect to Awards subject to Section 409A of the Code, the Plan is intended to comply with the requirements of Section 409A of the Code, and the provisions of the Plan and any Award Document shall be interpreted in a manner that satisfies the requirements of Section 409A of the Code, and the Plan shall be operated accordingly.  If any provision of the Plan or any term or condition of any Award would otherwise frustrate or conflict with this intent, the provision, term or condition will be interpreted and deemed amended so as to avoid this conflict.  If an amount 

 

  

13

  

 

payable under an Award as a result of the Participant’s Termination of Service (other than due to death) occurring while the Participant is a “specified employee” under Section 409A of the Code constitutes a deferral of compensation subject to Section 409A of the Code, then payment of such amount shall not occur until six months and one day after the date of the Participant’s Termination of Service, except as permitted under Section 409A of the Code.  Notwithstanding the foregoing, the tax treatment of the benefits provided under the Plan or any Award Document is not warranted or guaranteed.

 

Section 17.  Data Protection.  By participating in the Plan, the Participant consents to the holding and processing of personal information provided by the Participant to the Company or any Affiliate, trustee or third party service provider, for all purposes relating to the operation of the Plan.  These include, but are not limited to:

 

(i)      administering and maintaining Participant records;

 

(ii)     providing information to the Company, Affiliates, trustees of any employee benefit trust, registrars, brokers or third party administrators of the Plan;

 

(iii)    providing information to future purchasers or merger partners of the Company or any Affiliate, or the business in which the Participant works; and

 

(iv)     transferring information about the Participant to any country or territory that may not provide the same protection for the information as the Participant’s home country.

 

Section 18.  Governing Law.  The Plan and each Award Document shall be governed by the laws of the state of Florida, without application of the conflicts of law principles thereof.

 

Section 19.  Definitions.  As used in the Plan, the following terms shall have the meanings set forth below:

 

(a)  “Affiliate” means (i) any entity that, directly or indirectly, is controlled by the Company and (ii) any entity in which the Company, directly or indirectly, has a significant equity interest, in each case as determined by the Committee.

 

(b)  “Award” means any Option, SAR, Restricted Stock, RSU, Performance Award or Other Stock-Based Award granted under the Plan.

 

(c)  “Award Document” means any agreement, contract or other instrument or document, which may be in electronic format, evidencing any 

 

  

14

  

 

Award granted under the Plan, which may, but need not, be executed or acknowledged by a Participant.

 

(d)  “Beneficiary” means a person entitled to receive payments or other benefits or exercise rights that are available under the Plan in the event of the Participant’s death.  If no such person is named by a Participant, or if no Beneficiary designated by the Participant is eligible to receive payments or other benefits or exercise rights that are available under the Plan at the Participant’s death, such Participant’s Beneficiary shall be such Participant’s estate.

 

(e)  “Board” means the board of directors of the Company.

 

(f)  “Cause” means, with respect to any Participant, “cause” as defined in such Participant’s Employment Agreement, if any, or if not so defined, except as otherwise provided in such Participant’s Award Document, such Participant’s:

 

(i)    commission of a willful act of dishonesty in the course ofParticipant’s duties,

 

(ii)    conviction by a court of competent jurisdiction of, or plea of no contest to, a crime constituting a felony or conviction in respect of any act involving fraud, dishonesty or moral turpitude,

 

(iii)   Participant’s performance under the influence of controlledsubstances (other than those taken pursuant to a medical doctor’s orders),or continued habitual intoxication, during working hours,

 

(iv)    frequent or extended, and unjustifiable, absenteeism,

 

(v)    Participant’s personal misconduct or refusal to perform duties and responsibilities or to carry out directives of the Company, which, if capable of being cured shall not have been cured, within 5 days after the Company shall have advised Participant in writing of its intention to terminate Participant’s employment, or

 

(vi)   material non-compliance with the terms of any applicableEmployment Agreement.

 

The occurrence of any such event that is susceptible to cure or remedy shall not constitute Cause if such Participant cures or remedies such event within 30 days after the Company provides notice to such Participant.

 

(g)  “Change in Control” means the occurrence of any one or more of the following events, except as otherwise provided in a Participant’s Award Document:

 

  

15

  

 

(i)      a direct or indirect change in ownership or control of the Company effected through one transaction or a series of related transactions within a 12-month period, whereby any “person” (as defined in Section 3(a)(9) of the Exchange Act) or any two or more persons deemed to be one “person” (as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act) (in each case a “Person”) other than the Company or an employee benefit plan maintained by the Company, directly or indirectly acquire or maintain “beneficial ownership” (within the meaning of Rule 13d-3 under the Exchange Act) of securities of the Company constituting more than 50% of the total combined voting power of the Company’s equity securities outstanding immediately after such acquisition;

 

           (ii)      at any time during a period of 12 consecutive months, individuals who at the beginning of such period constituted the Board cease for any reason to constitute a majority of members of the Board; provided, however, that any new member of the Board whose election or nomination for election was approved by a vote of at least a majority of the directors then still in office who either were directors at the beginning of such period or whose election or nomination for election was so approved, shall be considered as though such individual were a member of the Board at the beginning of the period, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board;

 

(iii)      the consummation of a merger or consolidation of the Company or any of its subsidiaries with any other corporation or entity, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or being converted into voting securities of the surviving entity or, if applicable, the ultimate parent thereof) at least 50% of the combined voting power and total fair market value of the securities of the Company or such surviving entity or parent outstanding immediately after such merger or consolidation; or

 

(iv)     the consummation of any sale, lease, exchange or other transfer to any Person (other than an Affiliate of the Company), in one transaction or a series of related transactions within a 12-month period, of all or substantially all of assets of the Company and its subsidiaries.

 

(h)  “Code” means the United States Internal Revenue Code of 1986, as amended from time to time, and the rules, regulations and guidance thereunder.  Any reference to a provision in the Code shall include any successor provision thereto.

 

  

16

  

 

(i)  “Committee” means the Compensation and Human Resources Committee of the Board or such other committee as may be designated by the Board; provided that, with respect to any Award granted to any Non-Employee Director, the “Committee” means the Nominating and Corporate Governance Committee of the Board or such other committee as may be designated by the Board.  If the Board does not designate the Committee, references herein to the “Committee” shall refer to the Board.

 

(j)  “Covered Employee” means an individual who is (i) either a “covered employee” or expected by the Committee to be a “covered employee,” in each case within the meaning of Section 162(m)(3) of the Code or (ii) expected by the Committee to be the recipient of compensation (other than Section 162(m) Compensation) in excess of $1,000,000 for the tax year of the Company with regard to which a deduction in respect of such individual’s Award would be claimed.

 

(k)  “Disability” means, with respect to any Participant, “disability” as defined in such Participant’s Employment Agreement, if any, or if not so defined, except as otherwise provided in such Participant’s Award Document:

 

(i)      a permanent and total disability that entitles the Participant to disability income payments under any long-term disability plan or policy provided by the Company under which the Participant is covered, as such plan or policy is then in effect; or

 

(ii)      if such Participant is not covered under a long-term disability plan or policy provided by the Company at such time for whatever reason, then a “permanent and total disability” as defined in Section 22(e)(3) of the Code and, in this case, the existence of any such Disability will be certified by a physician acceptable to the Company.

 

(l)  “Effective Date” means the date on which the Plan is adopted by the Board and approved by the shareholders of the Company.

 

(m)  “Employment Agreement” means any employment, severance, consulting or similar agreement (including any offer letter) between the Company or any of its Affiliates and a Participant.

 

(n)  “Exchange Act” means the United States Securities Exchange Act of 1934, as amended from time to time, and the rules, regulations and guidance thereunder.  Any reference to a provision in the Exchange Act shall include any successor provision thereto.

 

  

17

  

 

(o)  “Fair Market Value” means (i) with respect to a Share, the closing price of a Share on the date in question (or, if there is no reported sale on such date, on the last preceding date on which any reported sale occurred) on the principal stock market or exchange on which the Shares are quoted or traded, or if Shares are not so quoted or traded, the fair market value of a Share as determined by the Committee, and (ii) with respect to any property other than Shares, the fair market value of such property determined by such methods or procedures as shall be established from time to time by the Committee in compliance with Section 409A of the Code.

 

(p)  “Good Reason” means, with respect to any Participant, “good reason” as defined in such Participant’s Employment Agreement, if any, or if not so defined, then such Participant shall have no Good Reason rights under the Plan or any Award granted hereunder.

 

(q)  “Incentive Stock Option” means an option representing the right to acquire Shares from the Company, granted in accordance with the provisions of Section 5, that meets the requirements of Section 422 of the Code.

 

(r)  “Intrinsic Value” with respect to an Option or SAR Award means (i) the excess, if any, of the price or implied price per Share in a Change in Control or other event over the exercise or hurdle price of such Award multiplied by (ii) the number of Shares covered by such Award.

 

(s)  “Lock-Up Agreement” means any agreement between the Company or any of its Affiliates and a Participant that provides for restrictions on the transfer of Shares held by such Participant.

 

(t)  “Non-Employee Director” means a member of the Board who is not an employee of the Company or an Affiliate.

 

(u)  “Non-Qualified Stock Option” means an option representing the right to acquire Shares from the Company, granted in accordance with the provisions of Section 5, that is not an Incentive Stock Option.

 

(v)  “Option” means an Incentive Stock Option or a Non-Qualified Stock Option; provided, however, that any Option granted to a Non-Employee Director, consultant or other advisor shall be a Non-Qualified Stock Option.

 

(w)  “Other Stock-Based Award” means an Award granted in accordance with the provisions of Section 9.

 

(x)  “Participant” means the recipient of an Award granted under the Plan.

 

(y)  “Performance Award” means an Award granted in accordance with the provisions of Section 8.

 

  

18

  

 

(z)  “Performance Period” means the period established by the Committee at the time any Performance Award is granted or at any time thereafter during which any performance goals specified by the Committee with respect to such Award are measured.

 

(aa)  “Replacement Award” means an Award granted in assumption of, or in substitution for, an outstanding award previously granted by a company or business acquired by the Company or with which the Company, directly or indirectly, combines.

 

(bb)  “Restricted Stock” means any Share granted in accordance with the provisions of Section 7.

 

(cc)  “RSU” means a contractual right granted in accordance with the provisions of Section 7 that is denominated in Shares.  Each RSU represents a right to receive the value of one Share.  Awards of RSUs may include the right to receive dividend equivalents.

 

(dd)  “SAR” means any right granted in accordance with the provisions of Section 6 to receive upon exercise by a Participant or settlement the excess of (i) the Fair Market Value of one Share on the date of exercise or settlement over (ii) the exercise or hurdle price of the right on the date of grant, or if granted in connection with an Option, on the date of grant of the Option.

 

(ee)  “Section 162(m) Compensation” means “qualified performance-based compensation” within the meaning of Section 162(m) of the Code.

 

(ff)  “Shares” means ordinary shares of the Company.

 

(gg)  “Termination of Service” means,

 

(i)           in the case of a Participant who is an employee of the Company or an Affiliate, cessation of the employment relationship such that the Participant is no longer an employee of the Company or Affiliate;

 

(ii)           in the case of a Participant who is a Non-Employee Director, the date that the Participant ceases to be a member of the Board for any reason; or

 

(iii)           in the case of a Participant who is a consultant or other advisor, the effective date of the cessation of the performance of services for the Company or an Affiliate;

 

provided, however, that in the case of an employee, the transfer of employment

 

  

19

  

 

from the Company to an Affiliate, from an Affiliate to the Company, from one Affiliate to another Affiliate or, unless the Committee determines otherwise, the cessation of employee status but the continuation of the performance of services for the Company or an Affiliate as a member of the Board or a consultant or other advisor shall not be deemed a cessation of service that would constitute a Termination of Service; and provided further, that a Termination of Service will be deemed to occur for a Participant employed by an Affiliate when an Affiliate ceases to be an Affiliate, unless such Participant’s employment continues with the Company or another Affiliate.

 

 

20Exhibit 10.22

 

OFFICE LEASE AGREEMENT

 

Magdalene Center

 

THIS OFFICE LEASE AGREEMENT (this “Lease”) is made and entered into as of the Effective Date (as defined in Section 33) by and between Magdalene Center of Tampa, LLC, a Florida limited liability company (“Landlord”) and Tenant.

 

SUMMARY OF KEY TERMS AND DEFINITIONS

 

	
“Tenant”

	 	
Health Plan Intermediaries, LLC                                     

A Florida (State) ☐corporation / ☐partnership / ☒limited liability company / ☐limited partnership /

☐sole proprietorship / ☐_____________ (select one)

	 	 	 
	
“Tenant’s Address”

	 	
218 E. Bearss Avenue Suite 325, Tampa, FL  33613

	 	 	 
	
“Guarantor”

	 	
N/A

	 	 	 
	
“Project”

	 	
Magdalene Center, located at 15436 & 15438 N. Florida Ave., Tampa, Florida 33613 containing approximately 40.725 square feet

	 	 	 
	
“Premises”

	 	
Suite 201-N of the Project, as more particularly identified on the Site Plan of the Project attached hereto as Exhibit “A” and containing approximately 6,462 rentable square feet of office space, and representing 15.87% of the Project (“Pro Rata Share”).

	 	 	 
	
“Lease Term”

	 	
Forty two (42) month(s)

	 	 	 

	
“Commencement Date”

	 	
January 1, 2012

	With permission from the Landlord.  Tenant may take occupancy of the Leased Premises prior to the Commencement Date.  In the event Tenant takes such early occupancy, all terms and conditions of this Lease shall be in effect with the exception of rent, which shall begin on the Commencement Date regardless of the date of occupancy.

 

	Page 1 of 26
	 	 	 	 	 	 
	 	Landlord	 	 	Tenant	 
	 	Initials	 	 	Initials	 

  

 

  

 

	
“Expiration Date”

	 	
June 30, 2015 unless the Lease Term is sooner terminated as provided herein.

	 	 	 

	
“Base Monthly Rent”

	 	
01/01/2012 – 03/31/2012

	
$5,971.25

	 	 	
04/01/2012 – 06/30/2012

	
$7,516.06

	 	 	
07/01/2012 – 06/30/2013

	
$8,885.25

	 	 	
07/01/2013 – 6/30/2014

	
$9,240.66

	 	 	
07/01/2014 – 06/30/2015

	
$9,610.29

	 	 	 
	
“Sales Tax”

	 	
Tenant shall pay state sales tax, if applicable, which is currently 7%

	 	 	 
	
“Utilities”

	 	
Electric at the premises is the responsibility to the Tenant

	 	 	 
	
“Free Rent”

	 	
No rent shall be due for the period of 07/01/2012 – 07/31/2012

	 	 	 
	
“Security Deposit”

	 	
$5,134.00

	 	 	 
	
“Tenant’s Permitted Use”

	 	
Administrative office purposes under the trade name “Health Insurance Innovations”

	 	 	 
	
“Work Letter Agreement”

	 	
See Exhibit “B” attached hereto

	 	 	 
	
“Lease Year”

	 	
Every twelve month period commencing with the Commencement Date or, if the Commencement Date falls on a day other than the first day of a calendar month, every twelve month period commencing with the first day of the calendar month following the Commencement Date.

	 	 	 
	
“Normal Business Hours”

	 	
8:00 a.m. to 6:00 p.m., Monday through Friday, except recognized State of Florida and Federal Holidays (which holidays include, without limitation, New Year’s Day, President’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, the day after Thanksgiving, and Christmas Day) (a “Holiday”)

 

	Page 2 of 26
	 	 	 	 	 	 
	 	Landlord	 	 	Tenant	 
	 	Initials	 	 	Initials	 

  

 

  

 

	
“Landlord’s Address”

	 	
Magdalene Center of Tampa, LLC c/o Om Ventures Realty, 4008 N. Florida Ave. Tampa FL  33603

	 	 	 
	
“Parking Spaces”

	 	
26 non-exclusive vehicular parking spaces of which Tenant has elected exclusive right to 3 of the allotted parking spaces for the duration of the Lease Term.  Landlord grants to Tenant the exclusive right to use covered parking spaces number 1, 2, 3 as indicated on the Site Plan marked as Exhibit “A”

	 	 	 
	
“Broker”

	 	
OM Ventures Realty, LLC (see Section 34)

 

The terms and definitions set out in this Summary of Key Terms and Definitions are referred to and hereby incorporated into this Lease and shall have the meanings set forth above unless otherwise expressly limited or modified by the text of this Lease.  This Lease consists of a total of 8 printed pages, plus a Site Plan marked as Exhibit “A,” Work Letter Agreement marked as Exhibit “B,” a Floor Plan marked as Exhibit “C” and the Project Rules and Regulations marked as Exhibit “D.”

 

	Page 3 of 26
	 	 	 	 	 	 
	 	Landlord	 	 	Tenant	 
	 	Initials	 	 	Initials	 

  

 

  

 

W I T N E S S E T H

 

Landlord in consideration of the rentals herein reserved and the covenants and conditions herein undertaken by or imposed upon Tenant, hereby leases, lets, and demises to Tenant, and Tenant hereby leases and hires from Landlord the Premises for the Lease Term commencing on the Commencement Date and ending at midnight on the last day of the Lease Term (“Expiration Date”).  Tenant shall also have the right, in common with all other tenants and occupants of the Project, to the non-exclusive use of the common areas located within the Project and the appurtenant parking areas, walkways and sidewalks subject to the terms hereof.

 

Upon initial occupancy of the Premises, Tenant shall execute Landlord’s standard Confirmation of Commencement Date and Acceptance of Premises letter (“Acceptance Letter”).  Such Acceptance Letter shall confirm the Commencement Date and Expiration Date of the Lease, shall indicate that Tenant has accepted the Premises, and shall indicate any agreed upon punchlist items which Landlord is required to perform based upon the Work Letter Agreement attached as Exhibit “B.”  Tenant’s failure or refusal to execute the Acceptance Letter shall have no effect on the other contents of this Lease, such contemplated execution to be merely for clarification purposes.  By occupying the Premises, Tenant shall be conclusively deemed, in any event, to have accepted the Premises in their entirety.  Tenant hereby expressly acknowledges and agrees that Tenant’s Pro Rata Share may change from time to time upon a change in the total rentable square feet of space contained when the Project occasioned by any additions or subtractions made to the Project by Landlord.  Any such change in Tenant’s Pro Rata Share shall be effective immediately upon Tenant’s receipt of notice from Landlord as to such change.

 

1.           Rent.  Tenant covenants and agrees to pay to Landlord at Landlord’s Address, or at such other addresses and to such other persons as Landlord may from time-to-time designate to Tenant in writing, the Base Monthly Rent.  All installments of Rent, plus any other charges that may be due, are due and payable in advance, without demand, abatement reduction, recoupment, setoff or deduction, on the first day of each and every calendar month during the Lease Term commencing on the Commencement Date.  If the Commencement Date occurs on a date other than the first day of a calendar month, or if the Expiration Date occurs on a date other than the last day of a calendar month, then the Base Monthly Rent of such fractional month shall be prorated on a daily basis based upon a 30-day calendar month.  Any payment of Base Monthly Rent or other charges or other sums due Landlord hereunder (“Additional Rent”) (the Base Monthly Rent and Additional Rent being collectively referred to as the “Rent”) that is not received by Landlord on or before the date that is three (3) days after the same is due and payable shall (i) be subject to a five present (5%) late payment fee to offset Landlord’s expense, 

 

	Page 4 of 26
	 	 	 	 	 	 
	 	Landlord	 	 	Tenant	 
	 	Initials	 	 	Initials	 

 

  

 

 

delay and inconvenience in handling the late payment, or $50.00, whichever is greater, and (ii) bear interest from the date when due until paid at the lesser of eighteen percent (18%) per annum or the maximum lawful rate of interest.  Such late payment fee and interest shall be due with the payment to which they relate.  Tenant agrees to pay Landlord a $50 fee for each check returned for insufficient funds and a $50 processing fee for each notice that Landlord sends to Tenant concerning delinquent rent or other violation of this Lease.

 

2.           Operating Expenses, Insurance Expense, Tax Expense & Other Additional Rent.  Tenant shall not be responsible for the cost of increases in operating expenses.

 

3.           Security, Prepaid Rent.

 

a.           Landlord hereby acknowledges receipt from Tenant of the Security Deposit, which shall be held by Landlord throughout the Lease Term as security for Tenant’s performance of each and every covenant contained herein on the part of Tenant to be performed and may commingle such Security Deposit with Landlord’s other funds.  Upon Tenant’s breach of any term or provision of this Lease, Landlord may apply the same against any installment of Rent then due to cure any such breach, or against any of Landlord’s damages, and Landlord shall not thereby waive any right or remedy available to Landlord under this Lease or by law with respect to such breach.  In the event Landlord applies the Security Deposit to remedy a default, Tenant shall promptly without delay replace said amount so Landlord then holds the amount in the Summary of Key Terms and Definitions.  In all other events, said sum shall be returned to Tenant, without interest, within thirty (30) days following the expiration of the Lease Term unless the security deposit is held pending Landlord’s completion of repairs required to be made to the Premises.

 

b.           Landlord hereby acknowledges receipt from Tenant of the First Month’s Base Rent as noted in the Summary of Key Terms and Definitions.

 

4.           Signs.  Tenant shall not erect, install, maintain or display any signs, lettering, awnings, canopies or advertising on the interior or exterior of the Premises or the Project without the prior written consent of Landlord, which content may be withheld or denied by Landlord in its sole and absolute discretion.  In the event such consent of Landlord is obtained, Tenant, at its sole cost and expense, shall provide and maintain all signage, vinyl lettering and the like in good condition and repair at all times during the Lease Term.  Landlord will provide building standard exterior suite sign at Tenant’s cost.  Upon the termination of this Lease, Tenant shall remove all signs, lettering, awnings and canopies and repair any and all damage caused by such removal. Tenant shall be responsible for ensuring that all signs, lettering, awnings, canopies or advertising erected 

 

	Page 5 of 26
	 	 	 	 	 	 
	 	Landlord	 	 	Tenant	 
	 	Initials	 	 	Initials	 

 

  

 

 

or installed by Tenant comply with all applicable Laws.  Tenant shall be allowed the following signs:  Building directory signs on exterior door.

 

5.           Liens Prohibited.  Tenant shall not permit any liens to attach to any interest in the Premises or the Project for labor services or materials furnished thereto pursuant to a contract with or benefiting Tenant; and, in the event such liens do attach Tenant agrees to pay and discharge the same forthwith.  Landlord may pay any charges, on behalf of Tenant, that are threatened to be recorded as a lien.  All such charges paid by Landlord will be billed to Tenant as Additional Rent.  Without limitation of the foregoing, Landlord may transfer such lien to a bond posted by Landlord pursuant to the provisions of Chapter 713, Florida Statutes, and recover from Tenant all costs of such bond, as well as all charges related thereto.  LANDLORD HEREBY NOTIFIES ALL PERSONS AND ENTITIES THAT ANY LIENS CLAIMED BY ANY PARTY AS THE RESULT OF IMPROVING THE PREMISES OR THE PROJECT PURSUANT TO A CONTRACT WITH, BENEFITING, OR AT THE DIRECTION OF TENANT, OR WITH ANY PERSON OTHER THAN LANDLORD, SHALL EXTEND TO, AND ONLY TO THE RIGHT, TITLE AND INTEREST IN AND TO THE PREMISES OR THE PROJECT, IF ANY, OF THE PERSON CONTRACTING FOR SUCH IMPROVEMENTS.  THIS SECTION SHALL BE CONSTRUED SO AS TO PROHIBIT, IN ACCORDANCE WITH THE PROVISIONS OF CHAPTER 713, FLORIDA STATUTES, THE INTEREST OF LANDLORD IN THE PREMISES OR THE PROJECT BEING SUBJECT TO ANY LIEN FOR ANY IMPROVEMENTS MADE BY TENANT OR ANY OTHER PERSON ON THE PREMISES OR THE PROJECT.

 

Utilities Services.  The Premises are separately metered for electricity.  As such, Tenant, at its sole cost and expense, shall pay to the electric company prior to delinquency all charges for electrical service to the Premises.  As long as the Tenant is not in default under the Lease, Landlord shall be responsible at all times during the Lease Term for furnishing the Premises with sewer and water to the Premises if applicable, as well as provide customary janitorial service to the Premises according to Project standards, other than on Holidays, for Project-standard installations.  All such cleaning will be done between 6:00p.m. and 8:00a.m.  Landlord is not responsible for cleaning food preparation/kitchen areas, training areas, or data processing areas.  Landlord shall provide HVAC services to the Premises during Normal Business Hours.  HVAC usage outside of Normal Business Hours will be billed to Tenant as additional rent at the then current rate charged by Landlord.  All services, as indicated above in this paragraph, shall be rendered only if Tenant is not in default under this Lease.

 

6.           Repairs.  Landlord, at Landlord’s sole cost and expense, shall maintain in good order and repair throughout the Lease Term the exterior grounds, the landscaping, 

 

	Page 6 of 26
	 	 	 	 	 	 
	 	Landlord	 	 	Tenant	 
	 	Initials	 	 	Initials	 

 

  

 

 

the exterior walls and roof of the Premises, the common areas of the Project, the thermostat and HVAC system, the HVAC filters, and the parking areas, unless any such repairs are necessitated by the negligence or misconduct of Tenant, its agents, employees, contractors, consultants, licensees or invitees, in which event Tenant shall be responsible for the costs of such repairs.  Landlord shall be responsible for all common area pest control throughout the Project.  Notwithstanding the foregoing, Landlord shall have no obligation to make such repairs nor shall Landlord have any liability for the damages to the property of, or personal injury to the Tenant, its invitees, employees, contractors, consultants, agents or licensees or to any third party, resulting from the condition of any item described in this Section as being the responsibility of Landlord to repair, until Landlord has actual written notice of the need for such repair.  Tenant shall use Landlord’s online system for work order requests or other system as Landlord may from time to time utilize.

 

Tenant, at Tenant’s sole cost and expense, shall maintain in good, clean and sanitary condition, order and repair throughout the Lease Term the Premises, including, but not limited to, all doors, interior walls, ceilings, floors, entrance ways, windows, glass surfaces, electrical fixtures and conduits, interior lighting fixtures and bulbs, carpeting, blinds, and draperies and all plumbing, fixtures, systems and facilities located within the Premises, and shall supply all paper and soap for any restroom located within the Premises.  Tenant shall be responsible for all interior pest control throughout the Premises.  Tenant may, at Tenant’s option and expense, periodically engage Landlord to replace lamps, fluorescent tubes and lamp ballasts on a group basis.  Tenant shall pay to Landlord as additional rent the sum of (i) the cost of such replaced items at cost plus applicable sales tax, and (ii) a labor charge of $30.00 per hour (full or partial) with a one hour minimum (the hourly rate will be subject to change from time-to-time as Landlord deems necessary).  Tenant also agrees that it shall not exceed its pro-rata share of amperage allotted to the building in which the Premises are located and the entire Property.  Tenant at all times shall maintain the interior of the Premises as a clean, sanitary and orderly condition and free from accumulations of trash or rubbish.  If Tenant neglects or refuses promptly to make any repairs or perform any maintenance required by this Section, Landlord may perform the same on Tenant’s behalf, and Tenant shall reimburse Landlord for all costs and expenses incurred, together with interest thereon at the highest rate permitted by law until paid, upon demand.  Reasonable wear and tear and casualty damage (other than casualty damage caused in whole or in part by Tenant, its agents, employees, contractors, consultants, licensees or invitees) are excepted from the provisions of this Section.

 

	Page 7 of 26
	 	 	 	 	 	 
	 	Landlord	 	 	Tenant	 
	 	Initials	 	 	Initials	 

  

 

  

 

7.           Insurance.

 

Tenant, at its sole cost and expense, shall maintain in force a comprehensive liability policy or policies of insurance written by a good and solvent insurance company in the amount of One Million Dollars ($1,000,000) combined single limit, insuring Landlord, its agents, lenders or Landlord’s designated entities, and Tenant against any liability whatsoever occasioned by accident on or about the Premises, or any appurtenances thereto.  Such insurance shall be on a per occurrence basis and endorsed to provide that the insurance shall be primary to and not contributory to any similar insurance carried by Landlord, and shall contain a severability of interest clause.  All insurance policies shall provide that they shall not be canceled or materially changed without at least providing 30 days’ prior written notice to Landlord.  All insurance policies (excluding workers’ compensation insurance) shall name Landlord, its agents, lenders or Landlord’s designated entities as additional insureds.  Tenant shall provide Landlord with satisfactory evidence of insurance, concurrently with the execution of this Lease, upon Landlord’s demand thereafter from time to time, and upon such renewal thereafter, demonstrating that the required coverages are in full force and effect.  Tenant shall renew the insurance policy not less than thirty (30) days prior to the expiration date thereof.  In addition, Tenant will maintain all insurance required by law.

 

8.           Waiver of Subrogation.  To the extent not prohibited by or violative of any policy of insurance issued to Landlord or to Tenant, each of Landlord and Tenant, and all those claiming by, through and under Landlord and Tenant (a “Waiving Party”), hereby waive any and all rights to recover against the other party, or against the officers, directors, shareholders, partners, joint venturers, employees, agents, customers, invitees or business visitors of the other party, for any loss or damage to the Waiving Party, that arise from any cause covered by any insurance required to be carried by the Waiving Party pursuant to this Lease and any other insurance actually carried by the Waiving Party.  The effect of such release is not limited to the amount of insurance actually carried or required to be carried, to the actual proceeds received after a loss, or to any deductibles applicable thereto.  Either party’s failure to carry the required insurance shall not invalidate this waiver.  Each policy of insurance required to be maintained hereunder shall (i) contain (by endorsement if necessary) a waiver of subrogation by the insurer against Landlord or Tenant, as the case may be, or (ii) include the name of Landlord or Tenant, as the case may be, as an additional insured.  Tenant agrees to cause all other occupants of the Premises claiming by, under or through Tenant to execute and deliver to Landlord such a waiver of claims and to obtain such waiver of subrogation rights endorsements.

 

9.           Substitute Space.  Landlord may not relocate Tenant without written approval from Tenant.

 

	Page 8 of 26
	 	 	 	 	 	 
	 	Landlord	 	 	Tenant	 
	 	Initials	 	 	Initials	 

  

 

  

 

10.           Indemnity.  Tenant hereby releases Landlord from, and agrees to defend, indemnify and hold Landlord harmless from and against, any and all losses, damages, claims or expenses, including reasonable attorneys’ fees, arising from Tenant’s lease, use or occupancy of the Premises, or from the conduct of Tenant’s business or from any activity, work or things done, permitted or suffered by Tenant, its agents, employees, contractors, consultants, licensees or invitees, in or about the Premises or the Project, or elsewhere, or from any negligence of Tenant, its agents, contractors, employees, consultants, licensees or invitees.  Without limiting the foregoing, Landlord shall not be liable to Tenant, or any employee, agent, contractor, consultant, licensee or invitee of Tenant, or to the general public, for any injury or damage to person or property for any reason whatsoever, including, without limitation, Landlord’s own negligence, unless Landlord’s gross negligence or willful misconduct is the exclusive cause of such loss or injury and with respect to injury or damage caused by any defect in the Premises or the Project until Landlord shall have received written notice of the existence of the same and shall have had a reasonable time in which to correct the same.

 

11.           Use.  Tenant hereby covenants and agrees to use all of the Premises continuously for Tenant’s Permitted Use and shall not use the Premises for any other use or purpose whatsoever without Landlord’s prior written consent, which consent may be withheld or denied in Landlord’s sole and absolute discretion.  Tenant shall conduct its business at all times in a high-class and reputable manner.  Tenant additionally covenants to not perform, or permit its agents, employees, contractors, consultants, licensees or invitees to perform, any act in the Premises prohibited by law nor omit to perform any act required by law in connection with the use of the Premises, including all building, housing, fire and health codes and regulations, not to use or maintain the Premises or the Project areas in such a manner as to constitute an actionable nuisance to Landlord or any third party, and not to commit or permit waste of the Premises or the Project.  Tenant shall not use or do anything in or about the Premises or the Project that will increase the insurance rates with respect to the Premises or the Project.  Tenant agrees to pay to Landlord as Additional Rent any increase in premiums for any insurance carried by Landlord on the Premises or the Project resulting from the business carried on in the Premises by Tenant or the manner in which Tenant carries on such business.

 

12.           Surrender of Premises.  Upon the termination of this Lease, Tenant shall surrender the Premises in a broom clean condition and in as good a condition as exists on the date hereof excepting only reasonable wear and tear and casualty damage (other than casualty damage caused in whole or in part by Tenant, its agents, contractors, employees, consultants, licensees or invitees).  Landlord will conduct a walk-through inspection with Tenant upon the Tenant’s surrender of the Premises to confirm conditions, and any cost deemed necessary to repair or return the Premises to an acceptable condition to Landlord will be deducted from the Security Deposit.  Should the Security Deposit not be adequate

 

	Page 9 of 26
	 	 	 	 	 	 
	 	Landlord	 	 	Tenant	 
	 	Initials	 	 	Initials	 

 

  

 

 

to compensate for the cost of repairs, an invoice will be sent to Tenant’s forwarding address, which will be payable within 10 days after mailing.

 

13.           Compliance with Laws and Regulations, Project Rules and Regulations.  Tenant, at its sole cost and expense, shall comply with all statutes, laws, ordinances, codes, rules, regulations, orders or other governmental decrees or regulations hereafter promulgated or any interpretation hereafter rendered (“Law”) now or hereafter in effect pertaining to the Premises or Tenant’s use of occupancy thereof, including, but not limited to, securing all appropriate business licenses, licenses for burglar alarms, occupational licenses, and annual certification of all fire extinguishers servicing the Premises.  Tenant hereby covenants and agrees at all times during the Lease Term to comply with all reasonable rules and regulations that Landlord may from time to time adopt for the protection of Landlord and other tenants of the Project.  The initial rules and regulations are set forth on Exhibit “D” attached hereto.  Furthermore, Tenant shall insure that the location of office desks and equipment within the Premises comply with the American with Disabilities Act of 1990 as amended.

 

14.           Entry by Tenant.  Tenant shall not be permitted entry to the Premises prior to the Lease Commencement Date unless accompanied by a representative of Landlord.  Tenant agrees to permit Landlord and Landlord’s agents entry to the Premises during Normal Business Hours or at such other mutually acceptable time upon 24 hours’ prior notice to Tenant for the purpose of inspecting the Premises, preventing waste thereto, making such repairs or performing such maintenance as Landlord may deem necessary, showing the Premises to prospective purchasers, prospective tenants and mortgage lenders, or discharging any duty imposed upon Landlord by this Lease or by law; provided, however, the same does not unreasonably interfere with Tenant’s use of the Premises.  Notwithstanding the foregoing, Landlord may access the Premises at any time and without Tenant’s approval in the event of an emergency.

 

15.           Entry by Landlord.  Landlord, its agents, contractors, employees, consultants, licensees or invitees shall have the right to enter the Premises at all times to examine the same and to show them to prospective mortgages, purchasers or lessees of the Premises and to make such decorations, repairs, alterations, improvements or additions as Landlord may deem necessary or desirable to the Property and Landlord shall be allowed to take all material into and upon said Premises that may be required thereof without the same constituting an eviction of Tenant in whole or in part and the rent reserved shall in no way abate while said decorations, repairs, alterations, improvements or additions are being made, by reason of loss or interruption of business of Tenant or otherwise.  If, during the last month of the Lease Term, Tenant shall have removed all of Tenant’s property therefrom, Landlord may immediately enter and alter, renovate and redecorate the Premises, without elimination or abatement of rent or

 

	Page 10 of 26
	 	 	 	 	 	 
	 	Landlord	 	 	Tenant	 
	 	Initials	 	 	Initials	 

 

  

 

 

incurring liability to Tenant for any compensation and such acts shall have no effect on this Lease.

 

16.           Subordination, Estoppel Certificates.  Tenant agrees that this Lease is and at all times shall be subject and subordinate to the lien of any mortgage now or hereafter encumbering the Premises or the Project and Tenant agrees from time-to-time to execute, acknowledge and deliver any instrument of subordination required or requested by any such mortgage lender and a signed writing acknowledging the status of this Lease.  Upon the transfer of any or all of Landlord’s interest in this Lease or the Premises, or both, regardless of whether such transfer is characterized as voluntary or by operation of law, conditional or unconditional, absolute or as security for performance of an obligation, Tenant agrees to promptly execute, acknowledge and deliver to such transferee, upon request, a signed writing acknowledging the status of this Lease, and all instruments of attornment required by such transferee.  Upon the absolute transfer of the reversion to any party assuming Landlord’s obligations hereunder, the person or entity executing this Lease as Landlord shall thereupon be relieved of any and all further obligations to Tenant hereunder.  Tenant hereby appoints Landlord as Tenant’s attorney-in-fact for purposes of executing on Tenant’s behalf any such instrument of subordination and any such signed writing acknowledging the status of this Lease if Tenant fails to do so within five (5) business days after Landlord’s request therefor.  Such appointment is coupled with an interest and is irrevocable.

 

17.           Assignment, Subletting and Pledging.  Tenant shall not, without Landlord’s prior written consent, which consent is subject to Landlord’s sole and absolute discretion, (i) assign this Lease, or any right or privilege granted hereunder, (ii) sublet all or any portion of the Premises, or (iii) mortgage, hypothecate or otherwise pledge this Lease or the leasehold estate created hereby as collateral or security for a monetary or other obligation.  Any (i) transfer of any of Tenant’s interest in this Lease or the Premises by operation of law, or (ii) change in the ownership structure of Tenant (such as the transfer or issuance of stock, membership interests, partnership interests, etc.) that results in a change in the voting control of Tenant, regardless of whether either of the foregoing is characterized as voluntary or involuntary, shall be construed as an “assignment” prohibited by this Section.  All assignment requests must be submitted in writing to Landlord and accompanied by a $500 non-refundable Legal Review fee.  The consent by Landlord to one or more assignments or sublettings shall not operate as a waiver of Landlord’s rights pertaining to any subsequent assignments or sublettings.  Notwithstanding any approved assignment or subletting, Tenant shall remain fully responsible and liable for the payment of the rental and other charges herein specified and for compliance with all other obligations of Tenant under the Lease.

 

	Page 11 of 26
	 	 	 	 	 	 
	 	Landlord	 	 	Tenant	 
	 	Initials	 	 	Initials	 

  

 

  

 

18.           Casualty.  In the event that the Premises shall be totally destroyed or shall be damaged by fire or other casualty to the extent that the same shall not be reasonably tenantable by Tenant, either party, may elect to cancel this Lease as of the time of the damage to, or destruction of, the Premises, whereupon Tenant shall be relieved from the payment of any rental accruing thereafter.  In the event that the Premises shall be partially destroyed or damaged by fire or other casualty to the extent that the same shall be reasonably tenantable by Tenant as mutually agreed to by the Parties, or if the Premises are totally destroyed and Landlord does not elect to cancel this Lease pursuant to the preceding sentence, then Landlord shall restore the Premises by repairs or reconstruction, in which event the amount of rental payable hereunder shall be abated for the period of Landlord’s repairs in proportion to the amount of the Premises which shall be untenantable by Tenant, unless such fire or other casualty was caused in whole or in part by Tenant, its agents, employees, contractors, consultants, licensees or invitees, in which event Tenant shall be obligated to continue paying rental accruing thereafter.  As used herein, the term “casualty” means fire, hurricane, flood, tornado, rain, wind, sinkhole or other act of God, regardless of whether the same reasonably could be foreseen; riot, civil commotion or other acts of a public enemy, war, terrorism and theft, vandalism or other criminal or tortious acts of third parties.  Repairs or reconstruction by Landlord shall be completed in a commercially reasonably period.  In the event that the Premises shall be rendered wholly untenantable by fire or other casualty, the Landlord shall be entitled to the proceeds of all applicable insurance maintained by Landlord, and may, at its option, (a) terminate this Lease by giving Tenant written notice thereof within thirty (30) days from the date of said damage or destruction, or (b) repair or replace the Premises to substantially the same condition as prior to the damage or destruction.  If the Landlord fails to commence to repair the damage or destruction within forty-five (45) days from the date of such damage or destruction, or if the Premises shall not have been substantially replaced or repaired within one hundred eighty (180) days after the date of such damage or destruction.  Tenant may at its option, terminate this Lease by giving written notice to Landlord within fifteen (15) days after Landlord’s failure to commence or substantially complete said repairs within the applicable time period.  The rent herein required to be paid shall abate during the period of such untenantability.

 

If the Premises shall be damaged in part by fire or other casualty, but still remain partially tenantable, Landlord shall repair the Premises to substantially the same condition as prior to the damage.  Landlord shall commence repair of the damage or destruction within ninety (90) days from the date of occurrence.  During the period of such repairs and restorations, this Lease shall continue in full force and effect, and Tenant shall be required to pay the rent herein reserved, abated by the percentage of area of the Leased Premises destroyed as compared to the total area of the Leased Premises.

 

	Page 12 of 26
	 	 	 	 	 	 
	 	Landlord	 	 	Tenant	 
	 	Initials	 	 	Initials	 

  

 

  

 

In the event that any damage or destruction occurs during the last twelve (12) months of the Lease Term or the renewal term, if any, to the extent of fifty percent (50%) or more of the insurable value of the Premises, Landlord may elect to terminate this Lease by giving notice of such election to Tenant within thirty (30) days after such damage or destruction.  In such event, Landlord shall receive the proceeds of the Landlord’s insurance policies without obligation to rebuild or restore the Premises, and Tenant shall execute any waiver which may be required of it by any insurer or Landlord.

 

19.           Condemnation.  If any portion (but not the whole) of the Premises is condemned for any public use or purpose by any legally constituted authority with the result that the Premises are no longer reasonably tenantable, then Landlord shall have the option of (i) canceling this Lease, and rent shall be accounted for between Landlord and Tenant as of the date of taking, or (ii) continuing with the Lease, in which event (a) the amount of rental payable hereunder shall be abated in proportion to the amount of the Premises taken in relation to the Premises as they existed prior to such taking, and (b) Landlord shall restore the Premises (exclusive of Tenant’s fixtures, equipment, signs, tenant improvements and any items installed in or affixed to the Premises by Tenant, which shall be promptly repaired, replaced or restored by Tenant, at Tenant’s sole cost and expense) by repairs or reconstruction to the extent of any condemnation proceeds attributable to only the improvements available to Landlord to make such repairs and reconstruction.  In the event the entire Premises is so taken, then Landlord may elect to relocate Tenant subject to Section 10 or terminate this Lease, in which event the rent will be apportioned through the date of such taking.  In the event of a taking, Landlord shall be entitled to all compensation to be paid by the condemning authority, except that Tenant may pursue any claim against the condemning authority that Tenant may independently have for business interruption or moving expenses.

 

20.           Parking.  Tenant shall have the right to the Parking Spaces for the non-exclusive use of Tenant and its employees, invitees and guests.  Landlord grants to Tenant the exclusive right to use 3 covered parking spaces, number 1, 2, 3 as indicated on the Site Plan marked as Exhibit “A.”

 

21.           Holding Over.  Should Tenant hold over in possession after the expiration or termination of this Lease without Landlord’s written permission, such continued possession shall not be construed as a renewal of this Lease, but shall be construed as a tenancy at sufferance at a daily rental rate equal to twice the daily rate of the Base Monthly Rent of the term of this Lease and otherwise subject to all of the terms and provisions hereof.  Furthermore, Landlord shall have all remedies available to it at law in equity.

 

	Page 13 of 26
	 	 	 	 	 	 
	 	Landlord	 	 	Tenant	 
	 	Initials	 	 	Initials	 

  

 

  

 

22.           Default.  Tenant shall be deemed in default of its obligations under this Lease upon the occurrence of any of the following:  (i) Tenant’s default in payment of any Base Monthly Rent, Additional Rent, or other sums hereunder on or before the date that is three (3) days after the same is due and payable; (ii) Tenant’s continued default in performance of any other covenant, promise or obligation under this Lease for a period of more than ten (10) days after delivery of written notice of such default to Tenant (unless the default is of such a nature that it cannot reasonably, without regard to Tenant’s financial condition be cured within said 10 days and Tenant reasonably, immediately and continuously prosecutes to completion such cure; (iii) Tenant’s failure to pay any installment of Base Monthly Rent, Additional Rent, or other sums due hereunder on or before the date when due on more than two (2) occasions during any twelve (12) month period; (iv) the bankruptcy of, or appointment of a receiver or trustee for, Tenant; (v) Tenant’s voluntarily petitioning for relief under or otherwise seeking the benefit of, any bankruptcy, reorganization or insolvency law; (vi) the sale of Tenant’s interest under this Lease by execution or other legal process; (vii) Tenant’s abandonment or vacation of the Premises during the Lease Term (Tenant’s non-occupation of the Premises for a period of fifteen (15) days shall be conclusively deemed an abandonment); (viii) Tenant ceasing its business operations on the Premises; (ix) any unauthorized assignment or subletting by Tenant; and (x) Tenant’s failure to take occupancy of the Premises when same is tendered by Landlord and Tenant.

 

23.           Landlord’s Remedies.  Upon Tenant’s uncured default hereunder, Landlord may exercise any one or all of the following options: (i) terminate Tenant’s right to possession of the Premises under this Lease and reenter and take possession of the Premises and relet or attempt to relet the Premises on behalf of Tenant, at such rent and under such terms and conditions as Landlord may, in the exercise of Landlord’s sole discretion, deem best under the circumstances for the purpose of reducing Tenant’s liability, and Landlord shall not be deemed to have thereby accepted a surrender of the Premises or the leasehold estate created hereby, and Tenant shall remain liable for all Base Monthly Rent, Additional Rent, and other sums due under this Lease and for all damages suffered by Landlord because of Tenant’s breach of any of the covenants of this Lease, (ii) Terminate this Lease and reenter upon and taken possession of the Premises with written notice to Tenant, whereupon the term hereby granted and all right, title and interest of Tenant in the Premises shall terminate, and such termination shall be without prejudice to Landlord’s right to collect from Tenant any Base Monthly Rent, Additional Rent or other sums that have accrued prior to such termination, together with all damages suffered by Landlord because of Tenant’s breach of any covenant contained in this Lease, and (iii) declare the entire remaining unpaid Rent for the term of this Lease then in effect to be immediately due and payable, and, at Landlord’s option, take immediate action to recover and collect the same by any available procedure.  At any time during any such repossession or reletting by Landlord, Landlord may, by delivering written notice to 

 

	Page 14 of 26
	 	 	 	 	 	 
	 	Landlord	 	 	Tenant	 
	 	Initials	 	 	Initials	 

 

  

 

 

Tenant, elect to exercise its option under item (ii) of the preceding sentence to accept a surrender of the Premises and the leasehold estate created hereby, terminate and cancel this Lease, and retake possession and occupancy of the Premises on behalf of Landlord.  The remedies provided in this Section shall be cumulative to those provided elsewhere herein or by law.

 

24.           Non-Waiver of Subsequent Defaults.  Any failure of Landlord to enforce any provision of this Lease, or to demand strict compliance therewith, upon any default by Tenant shall not be construed as modifying the terms of this Lease or as a waiver of Landlord’s right to terminate this Lease as herein provided or otherwise to enforce the provisions hereof upon any subsequent default by Tenant, unless such modification or waiver is in writing, signed by Landlord.

 

25.           Attorneys’ Fees.  If either Landlord or Tenant or their successors and assigns shall commence any legal proceeding against the other with respect to the enforcement or interpretation of any of the terms and conditions of this Lease, the non-prevailing party therein shall pay to the other expenses incurred by said other party in the litigation, including reasonable attorneys’ and paralegals’ fees and costs as may be fixed by the court having jurisdiction over the matter, including attorneys’ fees in appellate and bankruptcy court proceedings.

 

26.           Alterations and Improvements.  Other than the alterations and improvements, if any, described in the Work Letter Agreement attached hereto as Exhibit “B,” Tenant accepts the Premises in their “as is” condition.  Tenant agrees to make no alterations, additions or improvements to the Premises without Landlord’s prior written consent, which consent will not be unreasonably withheld or denied by Landlord, and all such additions, alterations and improvements shall be at Tenant’s sole cost and expense.  Landlord, at its sole option, may require Tenant, at Tenant’s expense, to remove any or all of such additions, alterations or improvements and restore the Premises to the same condition as exists on the date hereof, reasonable wear and tear excepted.  Notwithstanding anything contained in this Section to the contrary, Tenant shall comply with the NEC (National Electric Code) and/or all codes in effect in the State of Florida and the County of Hillsborough regarding all low voltage wiring including wiring for phone lines, computer networking, burglar and fire alarms and the like.  Tenant agrees to abide by any other laws and codes as may be enforced from time to time.  In addition, upon vacating the Premises, Tenant, at its sole cost and expense, shall remove all low-voltage wiring installed as part of its tenancy, including making necessary patches in walls and/or ceiling _______ areas as required.

 

27.           Notices.  Any notice or demand required under this Lease shall be in writing and shall be deemed to have been delivered when (i) personally delivered to the 

 

	Page 15 of 26
	 	 	 	 	 	 
	 	Landlord	 	 	Tenant	 
	 	Initials	 	 	Initials	 

 

  

 

 

recipient (either by courier or nationally recognized overnight delivery service) or (ii) mailed by registered or certified mail, and addressed to Landlord and Tenant at their respective addresses set forth in the Summary of Key Terms and Definitions.  Such addresses may be changed by written notice as provided in this Section.

 

28.           Miscellaneous.  This Lease constitutes a complete and total integration of the agreement of the parties, and all antecedent agreements, promises, representations and affirmations, whether written or oral, are merged herein and superseded hereby.  No oral promises, representations or affirmations made contemporaneously with the execution of this Lease shall operate to modify, enlarge or contradict its express terms.  This Lease may be modified by the subsequent agreement of the parties, but no such modification shall be operative unless contained in a writing signed by Landlord and Tenant.  The covenants contained herein shall bind, and the benefits hereof shall inure to, the respective heirs, personal representatives, successors and permitted assigns of the parties hereto, jointly and severally.  Unless the context requires otherwise, the singular shall be construed to include the plural and vice versa.  The paragraph headings used herein are for indexing purposes only and are not to be used in interpreting or construing the terms of this Lease.  If any provision of this Lease or application thereof to any person or circumstances shall to any extent be invalid, the remainder of this Lease or the application of such provision to persons or circumstances other than those as to which it is held invalid shall not be affected thereby and each provision of this Lease shall be valid and enforced to the fullest extent permitted by law.  This Lease is the result of negotiations between Landlord and Tenant and theretofore the language contained in this Lease shall be construed as a whole according to its fair meaning and not strictly for or against either Landlord or Tenant.

 

29.           No Joint Venture.  Landlord shall in no event be construed to be a partner or joint venturer of Tenant or any permitted assignee or sublessee, and Landlord shall not be responsible for any of Tenant’s debts or liabilities or the debts or liabilities of any permitted assignee or subtenant.

 

30.           Landlord’s Liability.

 

This Lease shall be non-recourse to Landlord, and Tenant shall look only to Landlord’s equity in the Premises in the event of any damages or claims which Tenant may assert against Landlord arising out of or in connection with this Lease.

 

31.           Force Majeure.  If either party hereto shall be delayed or prevented from the performance of any act required hereunder by reason of acts of God, strikes, lockouts, labor troubles, inability to procure materials, restrictive governmental laws or regulations or other cause without fault and beyond the control of the party obligated to perform 

 

	Page 16 of 26
	 	 	 	 	 	 
	 	Landlord	 	 	Tenant	 
	 	Initials	 	 	Initials	 

 

  

 

 

(financial inability excepted), performance of such act shall be excused for the period of the delay and the period for the performance of such act shall be correspondingly extended.

 

32.           Time.  Time is of the essence of this Lease and each and every provision hereof.  The “Effective Date” of this Lease shall be the date the last of Landlord and Tenant has executed this Lease as evidenced by the date below their respective signatures.

 

33.           Brokers’ Commissions.  Landlord and Tenant hereby represent and warrant to each other that no real estate agent, broker or finder was consulted, contacted or involved in connection with or in bringing about this transaction other than the Broker, who shall be paid a commission by Landlord under a separate agreement.  Each party hereby agrees to defend, indemnify and hold the other harmless of and from any and all liabilities and/or liens arising out of a breach of the foregoing representation and warranty by the defaulting party.

 

34.           Florida Law.  This Lease shall be given effect, and shall be constructed and construed by application of the laws of Florida.  The parties agree that venue for any action arising under or as a result or in connection with this Lease shall be proper in Hillsborough County, Florida.

 

35.           Statutory Radon Gas Notice.  The following notice is required by Florida law with respect to all real property leases:  “Radon is a naturally occurring radioactive gas that, when it has accumulated in a building in sufficient quantities, may present health risks to persons who are exposed to it over time.  Levels of radon that exceed federal and state guidelines have been found in buildings in Florida.  Additional information regarding radon and radon testing may be obtained from your county public health unit.”

 

36.           Hazardous Substances.  Tenant covenants to not use the Premises for the use, storage or transportation of Hazardous Substances other than those (i) reasonably necessary for the conduct of Tenant’s permitted use of the Premises and (ii) used, stored and transported by Tenant in compliance with all Environmental Laws.  Tenant hereby agrees to indemnify Landlord and hold Landlord harmless from and against any and all losses, liabilities, including strict liability, damages, injuries, expenses, including reasonable attorneys’ fees, costs of any settlement or judgment and claims of any and every kind whatsoever paid, incurred or suffered by, or asserted against, Landlord by any person or entity or governmental agency for, with respect to, or as a direct or indirect result of, the presence on or under, or the escape, seepage, leakage, spillage, discharge, emission, discharging or release from the Premises of any Hazardous Substance from and after the date hereof (including, without limitation, any losses, liabilities, including strict 

 

	Page 17 of 26
	 	 	 	 	 	 
	 	Landlord	 	 	Tenant	 
	 	Initials	 	 	Initials	 

 

  

 

 

liability, damages, injuries, expenses, including reasonable attorneys’ fees, costs of investigation of the environmental condition of the Premises or any portion of the Project and any feasibility studies or reports, costs of any settlement or judgment or claims asserted or arising under the Comprehensive Environmental Response, Compensation and Liability Act, any so called federal, state or local “Superfund” or “Superlien” laws, statutes, law ordinance code, rule, regulation, order or decree regulating, with respect to or imposing liability, including strict liability, substances or standards of conduct concerning any Hazardous Substance [an “Environmental Law”]), regardless of whether within the control of Landlord.  For purposes of this Section, “Hazardous Substances” shall mean and include biological waste and materials and those elements or compounds which are contained in the list of hazardous substances adopted by the United States Environmental Protection Agency (“EPA”) and the list of toxic pollutants designated by the United States Congress or the EPA or defined by any other federal, state or local statute, law, ordinance, code, rule, regulation, order or decree regulating, relating to, or imposing liability or standards of conduct concerning, any hazardous, toxic or dangerous waste, substance or material as now or at any time hereafter in effect.  In addition, Hazardous Waste shall include any infectious waste or any materials which cause a nuisance upon or waste to the Premises or Project.  If Tenant receives any notice of (i) the happening of any material event involving the spill, release, leak, seepage, discharge or clean-up of any Hazardous Substance on the Premises or in connection with Tenant’s operations thereon or (ii) any complaint, order, citation or material notice with regard to air emissions, water discharges, or any other environmental health or safety matter affecting Tenant from any person or entity (including without limitation the EPA) then Tenant shall immediately notify Landlord orally and in writing of said notice.

 

37.           Rent a Separate Covenant.  Tenant shall not for any reason withhold or reduce Tenant’s required payments of rent and other charges provided in this Lease, it being agreed that the obligations of Landlord hereunder are independent of Tenant’s obligations.  In this regard it is specifically understood and agreed that in the event Landlord commences any proceeding against Tenant for non-payment of rent or any other such sum due and payable by Tenant hereunder, Tenant will not interpose any counterclaim or other claim against Landlord of whatever nature or description in any such proceedings (except as required by Florida law), and in the event that Tenant interposes any such counterclaim or other claim against Landlord in such proceedings, Landlord and Tenant stipulate and agree that, in addition to any other lawful remedy of Landlord upon motion of Landlord, such counterclaim or other claim asserted by Tenant shall be severed out of the proceedings instituted by Landlord and the proceedings instituted by Landlord may proceed to final judgment separately and apart from and without consolidation with or reference to the status of such counterclaim or any other claim asserted by Tenant.

 

	Page 18 of 26
	 	 	 	 	 	 
	 	Landlord	 	 	Tenant	 
	 	Initials	 	 	Initials	 

  

 

  

 

38.           Quiet Enjoyment.  Provided Tenant has performed all of its obligations hereunder, Tenant shall peaceably and quietly hold and enjoy the Premises for the Term, without hindrance from Landlord or any party claiming by, through, or under Landlord but not otherwise, subject to the terms and conditions of this Lease.

 

39.           WAIVER OF JURY TRIAL.  LANDLORD AND TENANT HEREBY VOLUNTARILY AND KNOWINGLY WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM BROUGHT BY EITHER OF THEM AGAINST THE OTHER ON ALL MATTERS ARISING OUT OF THIS LEASE OR TENANT’S USE AND OCCUPANCY OF THE PREMISES.

 

IN WITNESS WHEREOF, the parties hereto have set their hands and seals as of the Effective Date.

 

	
“TENANT”

	  	
Signed, sealed and delivered

in our presence as witnesses to Tenant

 

Witness 1 for Tenant

 

	
Tenant Name                                Health Plan Intermediaries, LLC

 

	  	  
	
Business Type                             Insurance Administrator

 

State of Organization________FL_____________

	  	
Signature_________________________

 

Print Name______________________

 

Witness 2 for Tenant

 

	
Signature_________________________

 

Print Name______________________

 

Title__________________________

 

Date__________________________

 

	  	
Signature_________________________

 

Print Name______________________

 

 

	Page 19 of 26
	 	 	 	 	 	 
	 	Landlord	 	 	Tenant	 
	 	Initials	 	 	Initials	 

  

 

  

 

	
“LANDLORD”

 

 

 

Magdalene Center of Tampa, LLC

a Florida Limited Liability Company

 

 

	  	
Signed, sealed and delivered in our presences as witnesses to Landlord

 

 

Witness 1 for Landlord

	
By

	
Magdalene Investor Group, LLC

a Florida Limited Liability Company

	  	
Signature______________________

 

Print Name_____________________

 

	  	  	  	
Witness 2 For Landlord

 

	
By

 

 

Date

	
_____________________________

its Manager

 

_____________________________

 

	  	
Signature______________________

 

 

Print Name_____________________

 

	Page 20 of 26
	 	 	 	 	 	 
	 	Landlord	 	 	Tenant	 
	 	Initials	 	 	Initials	 

  

 

  

 

EXHIBIT “A” TO LEASE

 

SITE PLAN OF PROJECT

 

	 	 	 	 	 	 
	
Exhibit “A” to Lease – Site Plan of Project

	Landlord	 	 	Tenant	 
	 	Initials	 	 	Initials	 

 

 

 

 

EXHIBIT “B” TO LEASE

 

 

WORK LETTER AGREEMENT

 

Landlord, at Landlord’s expense, shall re-balance air distribution on 2 A/C units and re-attach supply vents

 

	 	 	 	 	 	 
	

Exhibit “B” to Lease – Work Letter Agreement

	Landlord	 	 	Tenant	 
	 	Initials	 	 	Initials	 

  

 

  

 

EXHIBIT “C” TO LEASE

 

Floor Plan

  

	 	 	 	 	 	 
	

Exhibit “C” to Lease – Floor Plan

	Landlord	 	 	Tenant	 
	 	Initials	 	 	Initials	 

 

 

 

 

EXHIBIT “D” TO LEASE

 

MAGDALENE CENTER

PROJECT RULES & REGULATIONS

REVISED:  9/20/05

 

Landlord has adopted the following Project Rules and Regulations for Magdalene Center (the “Project”), for the care, protection and benefit of your leased suite (the “Premises”), and for the general comfort and welfare of all tenants.  These Rules and Regulations apply to Tenant, and/or any of Tenant’s officers, employees, agents, patrons, customers, licensees, visitors, or invitees (hereafter referred to as “Tenant & Guests”) and are subject to amendment by the Landlord from time to time.  It is the express obligation of Tenant to inform in a timely manner each of its employees, agents, invitees, or guests of the rules and regulations of the Project and to cause such parties to comply therewith.

 

	
  

	
1.

	
Smoking is not permitted in the Premises, any of the office suites, interior or exterior bathrooms, parking area, exterior corridors, walkways or anywhere else on or about the site other than in the designated smoking areas.  Tenant shall not permit its employees, invitees or guests to loiter or smoke in the Premises or the lobbies, passages, corridors, rest rooms, common walkways, parking lot, entrances or any other area within the Premises or shared in common with other tenants in the Project.  A site plan will be provided denoting the designated smoking areas at the Project.

 

	
  

	
2.

	
Tenant & Guests shall not engage in criminal activity, including but not limited to drug-related criminal activity, gang related activity, any act intended to facilitate criminal activity of any kind, on or near the Project or Premises.  “Drug-related criminal activity” means the illegal manufacture, sale, distribution or use of a controlled substance (as defined in Section 102 of the Controlled Substance Act).

 

	
  

	
3.

	
Tenant & Guests will not engage in an act of violence or threats of violence, including, but not limited to verbal or physical fights and the unlawful discharge of firearms on or near the Project or Premises.  Tenant & Guests shall not conduct any activity on or about the Premises or Project that will draw pickets, demonstrators, or the like.

 

	
  

	
4.

	
Tenant & Guests shall at all times conduct themselves in a professional businesslike manner and will not engage in loud or profane discussions, arguments, phone calls and/or cellular phone calls in or about the Premises or common areas of the Project that disturb the quiet enjoyment of Tenant & Guests, neighboring tenants and their guests, invitees, customers and employees, the Landlord and its employees, agents, guests or invitees and management, maintenance, vendors or cleaning personnel employed by the Project.

 

	 	 	 	 	 	 
	

Exhibit “D” to Lease – Rules and Regulations

	Landlord	 	 	Tenant	 
	 	Initials	 	 	Initials	 

  

 

  

 

	
  

	
5.

	
Tenant & Guests shall not make or permit any vibration or improper, objectionable or unpleasant noises or odors in the Project or otherwise interfere in any way with other tenants or persons having business with them.  No machinery of any kind (other than normal office equipment) shall be operated by any tenant on its Premises without Landlord’s prior written consent, nor shall any tenant use or keep in the Project any flammable or explosive fluid or substance, building gasoline, kerosene oil, acids, caustics (other than typical office supplies (e.g., photocopier toner) used in compliance with all Laws), or any explosive fluid or substance, or any illuminating material, unless it is battery powered, UL approved.

 

	
  

	
6.

	
Tenant & Guests shall not do anything or permit anything to be done, in or about the Project or bring or keep anything therein that will in any way increase the possibility of fire or other casualty, or obstruct or interfere with the rights of or otherwise injure or annoy other Tenants, or do anything in conflict with the valid pertinent laws, rules or regulations of any governmental authority.  Tenant shall not use any electrical space heaters within the Premises.

 

	
  

	
7.

	
Tenants are responsible for all deliveries to their Premises and must insure that all boxes, wooden pallets, plastic carriers and debris of any sort is properly disposed of and/or removed by their delivery company at their sole cost and expense.  Tenants must make their own arrangements for the proper disposal of construction materials, furniture and fixtures, copy machines, printers, computers, monitors and appliances of any kind.  The trash dumpsters are for garbage and paper goods only.

 

	
  

	
8.

	
Tenant & Guests shall cooperate with Landlord and Landlord’s employees and/or the Project’s cleaning and maintenance personnel in keeping its Premises and the common areas of the Project neat and clean.

 

	
  

	
9.

	
Landlord will not be responsible for damaged or lost or stolen personal property, fixtures, furniture, equipment, money or jewelry from tenant’s Premises or common areas of the Project regardless of whether such loss occurs when the area is locked against entry or not.

 

	
  

	
10.

	
Loitering is strictly prohibited on the Premises.  Sidewalks, doorways, halls, designated smoking locations, parking lot and similar areas shall not be obstructed or used for any purpose other than ingress and egress to and from the Premises and for going from one part of the Project to another part of the Project.

 

2

	 	 	 	 	 	 
	

Exhibit “D” to Lease – Rules and Regulations

	Landlord	 	 	Tenant	 
	 	Initials	 	 	Initials	 

  

 

  

 

	
  

	
11.

	
Plumbing fixtures and appliances shall be used only for the purposes for which constructed, and no sweepings, rubbish, rags or other unsuitable material shall be thrown or placed therein.  Any violation of this provision which causes a stoppage or damage to any such fixtures or appliances by the Tenant, and/or any of Tenant’s officers, employees, agents, patrons, customers, licensees, visitors or invitees shall be repaired at the sole expense of the Tenant.

 

	
  

	
12.

	
Canvassing, soliciting, and peddling in the Project, Premises parking lot or common area grounds is prohibited.  To ensure orderly operation of the Project and compliance with the Landlord’s “No Soliciting” rule, no ice, mineral or other water, towels, newspapers, etc. shall be delivered to any Premises except by persons approved by Landlord.  No vending or dispensing machines of any kind other than bottled drinking water may be maintained in any Premises without the prior written permission of Landlord.

 

	
  

	
13.

	
Exterior and interior doors, when not in use, shall be kept free from obstructions at all times in accordance with the fire codes.

 

	
  

	
14.

	
No tenant may enter into the phone rooms, electrical rooms, mechanical rooms or other service areas of the Project unless accompanied by Landlord or the Property Manager / Maintenance Personnel.

 

	
  

	
15.

	
Nothing (including, without limitation, boxes, crates or excess trash) shall be swept into, disposed of, or deposited in the parking lot, exterior walkways, grounds, recreation or lawn areas, entries, passages, doors or hallways.  Exterior doors when not in use, shall be kept closed at all times.

 

3

	 	 	 	 	 	 
	

Exhibit “D” to Lease – Rules and Regulations

	Landlord	 	 	Tenant	 
	 	Initials	 	 	Initials

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00211-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00211-of-00352.parquet"}]]